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                                                       PRINTER'S NO. 494

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 446 Session of 2007


        INTRODUCED BY BEYER, O'NEILL, BELFANTI, BOYD, BUXTON, CAPPELLI,
           CURRY, GIBBONS, GRUCELA, HESS, KING, LEVDANSKY, MACKERETH,
           MANN, McILHATTAN, R. MILLER, MUNDY, MUSTIO, PICKETT, RUBLEY,
           SANTONI, STAIRS, STERN, R. STEVENSON, J. TAYLOR, WATSON,
           MENSCH, FLECK, BAKER, HANNA, EVERETT AND GOODMAN,
           FEBRUARY 22, 2007

        REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 22, 2007

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," amending, adding and deleting
     6     provisions relating to cyber charter schools.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 102 of the act of March 10, 1949 (P.L.30,
    10  No.14), known as the Public School Code of 1949, amended
    11  December 23, 2003 (P.L.304, No.48), is amended by adding a
    12  definition to read:
    13     Section 102.  Definitions.--When used in this act the
    14  following words and phrases shall have the following meanings:
    15     * * *
    16     "Beginners."  Any child that should enter the lowest grade of
    17  the primary school or the lowest primary class above the
    18  kindergarten level.

     1     * * *
     2     Section 2.  Section 1304 of the act, amended January 14, 1970
     3  (1969 P.L.468, No.192), is amended to read:
     4     Section 1304.  Admission of Beginners.--The admission of
     5  beginners to the public schools shall be confined to the first
     6  two weeks of the annual school term in districts operating on an
     7  annual promotion basis, and to the first two weeks of either the
     8  first or the second semester of the school term in districts
     9  operating on a semi-annual promotion basis. Admission shall be
    10  limited to beginners who have attained the age of five years and
    11  seven months before the first day of September if they are to be
    12  admitted in the fall, and to those who have attained the age of
    13  five years and seven months before the first day of February if
    14  they are to be admitted at the beginning of the second semester.
    15  The board of school directors of any school district may admit
    16  beginners who are less than five years and seven months of age,
    17  in accordance with standards prescribed by the State Board of
    18  Education. The board of school directors may refuse to accept or
    19  retain beginners who have not attained a mental age of five
    20  years, as determined by the supervisor of special education or a
    21  properly certificated public school psychologist in accordance
    22  with standards prescribed by the State Board of Education.
    23     [The term "beginners," as used in this section, shall mean
    24  any child that should enter the lowest grade of the primary
    25  school or the lowest primary class above the kindergarten
    26  level.]
    27     Section 3.  Section 1725-A of the act, amended or added June
    28  19, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35) and
    29  June 29, 2002 (P.L.524, No.88), is amended to read:
    30     Section 1725-A.  Funding for Charter Schools.--(a)  Funding
    20070H0446B0494                  - 2 -     

     1  for a charter school established under this article shall be
     2  provided in the following manner:
     3     (1)  There shall be no tuition charge for a resident or
     4  nonresident student attending a charter school.
     5     (2)  For non-special education students, the charter school
     6  shall receive for each student enrolled no less than the
     7  budgeted total expenditure per average daily membership of the
     8  prior school year, as defined in section 2501(20), minus the
     9  budgeted expenditures of the district of residence for nonpublic
    10  school programs; adult education programs; community/junior
    11  college programs; student transportation services; for special
    12  education programs; facilities acquisition, construction and
    13  improvement services; and other financing uses, including debt
    14  service and fund transfers as provided in the Manual of
    15  Accounting and Related Financial Procedures for Pennsylvania
    16  School Systems established by the department. This amount shall
    17  be paid by the district of residence of each student.
    18     (3)  For special education students, the charter school shall
    19  receive for each student enrolled the same funding as for each
    20  non-special education student as provided in clause (2), plus an
    21  additional amount determined by dividing the district of
    22  residence's total special education expenditure by the product
    23  of multiplying the combined percentage of section 2509.5(k)
    24  times the district of residence's total average daily membership
    25  for the prior school year. This amount shall be paid by the
    26  district of residence of each student.
    27     (4)  A charter school may request the intermediate unit in
    28  which the charter school is located to provide services to
    29  assist the charter school to address the specific needs of
    30  exceptional students. The intermediate unit shall assist the
    20070H0446B0494                  - 3 -     

     1  charter school and bill the charter school for the services. The
     2  intermediate unit may not charge the charter school more for any
     3  service than it charges the constituent districts of the
     4  intermediate unit.
     5     (5)  Payments shall be made to the charter school in twelve
     6  (12) equal monthly payments, by the fifth day of each month,
     7  within the operating school year. A student enrolled in a
     8  charter school shall be included in the average daily membership
     9  of the student's district of residence for the purpose of
    10  providing basic education funding payments and special education
    11  funding pursuant to Article XXV. If a school district fails to
    12  make a payment to a charter school as prescribed in this clause,
    13  the secretary shall deduct the estimated amount, as documented
    14  by the charter school, from any and all State payments made to
    15  the district after receipt of documentation from the charter
    16  school.
    17     (6)  Within thirty (30) days after the secretary makes the
    18  deduction described in clause (5), a school district may notify
    19  the secretary that the deduction made from State payments to the
    20  district under this subsection is inaccurate. The secretary
    21  shall provide the school district with an opportunity to be
    22  heard concerning whether the charter school documented that its
    23  students were enrolled in the charter school, the period of time
    24  during which each student was enrolled, the school district of
    25  residence of each student and whether the amounts deducted from
    26  the school district were accurate.
    27     (7)  A school district shall not be required to provide per
    28  pupil funding to charter schools for any student who does not
    29  meet the minimum requirement for the age of beginners
    30  established by the board of school directors in the student's
    20070H0446B0494                  - 4 -     

     1  school district of residence.
     2     (b)  The Commonwealth shall provide temporary financial
     3  assistance to a school district due to the enrollment of
     4  students in a charter school established under this article who
     5  attended a nonpublic school in the prior school year in order to
     6  offset the additional costs directly related to the enrollment
     7  of those students in a public charter school. The Commonwealth
     8  shall pay the school district of residence of a student enrolled
     9  in a nonpublic school in the prior school year who is attending
    10  a charter school an amount equal to the school district of
    11  residence's basic education subsidy for the current school year
    12  divided by the district's average daily membership for the prior
    13  school year. This payment shall occur only for the first year of
    14  the attendance of the student in a charter school, starting with
    15  school year 1997-1998. Total payments of temporary financial
    16  assistance to school districts on behalf of a student enrolling
    17  in a charter school who attended a nonpublic school in the prior
    18  school year shall be limited to funds appropriated for this
    19  program in a fiscal year. If the total of the amount needed for
    20  all students enrolled in a nonpublic school in the prior school
    21  year who enroll in a charter school exceeds the appropriation
    22  for the temporary financial assistance program, the amount paid
    23  to a school district for each qualifying student shall be pro
    24  rata reduced. Receipt of funds under this subsection shall not
    25  preclude a school district from applying for a grant under
    26  subsection (c).
    27     (c)  The Commonwealth shall create a grant program to provide
    28  temporary transitional funding to a school district due to the
    29  budgetary impact relating to any student's first-year attendance
    30  at a charter school established under this article. The
    20070H0446B0494                  - 5 -     

     1  department shall develop criteria which shall include, but not
     2  be limited to, the overall fiscal impact on the budget of the
     3  school district resulting from students of a school district
     4  attending a charter school. The criteria shall be published in
     5  the Pennsylvania Bulletin. This subsection shall not apply to a
     6  public school converted to a charter school under section 1717-
     7  A(b). Grants shall be limited to funds appropriated for this
     8  purpose.
     9     (d)  It shall be lawful for any charter school established
    10  under this article to receive, hold, manage and use, absolutely
    11  or in trust, any devise, bequest, grant, endowment, gift or
    12  donation of any property, real or personal and/or mixed, which
    13  shall be made to the charter school for any of the purposes of
    14  this article.
    15     (e)  It shall be unlawful for any trustee of a charter school
    16  or any board of trustees of a charter school or any other person
    17  affiliated in any way with a charter school to demand or
    18  request, directly or indirectly, any gift, donation or
    19  contribution of any kind from any parent, teacher, employe or
    20  any other person affiliated with the charter school as a
    21  condition for employment or enrollment and/or continued
    22  attendance of any pupil. Any donation, gift or contribution
    23  received by a charter school shall be given freely and
    24  voluntarily.
    25     Section 4.  Sections 1741-A, 1742-A, 1743-A, 1744-A, 1745-A,
    26  1746-A, 1747-A, 1748-A, 1749-A, 1750-A and 1751-A of the act,
    27  added June 29, 2002 (P.L.524, No.88), are repealed:
    28  [Section 1741-A.  Powers and duties of department.
    29     (a)  Powers and duties.--The department shall:
    30         (1)  Receive, review and act on applications for the
    20070H0446B0494                  - 6 -     

     1     creation of a cyber charter school and have the power to
     2     request further information from applicants, obtain input
     3     from interested persons or entities and hold hearings
     4     regarding applications.
     5         (2)  Renew the charter of cyber charter school and renew
     6     the charter of a charter school approved under section 1717-A
     7     or 1718-A which provides instruction through the Internet or
     8     other electronic means. Upon renewal of a charter of a
     9     charter school approved under section 1717-A or 1718-A, the
    10     charter school shall qualify as a cyber charter school under
    11     this subdivision and shall be subject to the provisions of
    12     this subdivision.
    13         (3)  Revoke or deny renewal of a cyber charter school's
    14     charter under the provisions of section 1729-A.
    15             (i)  Notwithstanding the provisions of section 1729-
    16         A(i), when the department has revoked or denied renewal
    17         of a charter, the cyber charter school shall be
    18         dissolved. After the disposition of the liabilities and
    19         obligations of the cyber charter school, any remaining
    20         assets of the cyber charter school shall be given over to
    21         the intermediate unit in which the cyber charter school's
    22         administrative office was located for distribution to the
    23         school districts in which the students enrolled in the
    24         cyber charter school reside at the time of dissolution.
    25             (ii)  Notwithstanding any laws to the contrary, the
    26         department may, after notice and hearing, take immediate
    27         action to revoke a charter if:
    28                 (A)  a material component of the student's
    29             education as required under this subdivision is not
    30             being provided; or
    20070H0446B0494                  - 7 -     

     1                 (B)  the cyber charter school has failed to
     2             maintain the financial ability to provide services as
     3             required under this subdivision.
     4         (4)  Execute charters after approval.
     5         (5)  Develop forms, including the notification form under
     6     section 1748-A(b), necessary to carry out the provisions of
     7     this subdivision.
     8     (b)  Hearings.--Hearings conducted by the department shall be
     9  conducted under 65 Pa.C.S. Ch. 7 (relating to open meetings).
    10     (c)  Documents.--Documents of the appeal board shall be
    11  subject to the act of June 21, 1957 (P.L.390, No.212), referred
    12  to as the Right-to-Know Law.
    13  Section 1742-A.  Assessment and evaluation.
    14     The department shall:
    15         (1)  Annually assess whether each cyber charter school is
    16     meeting the goals of its charter and is in compliance with
    17     the provisions of the charter and conduct a comprehensive
    18     review prior to granting a five-year renewal of the charter.
    19         (2)  Annually review each cyber charter school's
    20     performance on the Pennsylvania System of School Assessment
    21     test, standardized tests and other performance indicators to
    22     ensure compliance with 22 Pa. Code Ch. 4 (relating to
    23     academic standards and assessment) or subsequent regulations
    24     promulgated to replace 22 Pa. Code Ch. 4.
    25         (3)  Have ongoing access to all records, instructional
    26     materials and student and staff records of each cyber charter
    27     school and to every cyber charter school facility to ensure
    28     the cyber charter school is in compliance with its charter
    29     and this subdivision.
    30  Section 1743-A.  Cyber charter school requirements and
    20070H0446B0494                  - 8 -     

     1                     prohibitions.
     2     (a)  Special financial requirements prohibited.--A cyber
     3  charter school shall not:
     4         (1)  provide discounts to a school district or waive
     5     payments under section 1725-A for any student;
     6         (2)  except as provided for in subsection (e), provide
     7     payments to parents or guardians for the purchase of
     8     instructional materials; or
     9         (3)  except as compensation for the provision of specific
    10     services, enter into agreements to provide funds to a school
    11     entity.
    12     (b)  Enrollment.--A cyber charter school shall report to the
    13  department an increase or a decrease of 30% or more in its
    14  anticipated enrollment set forth in the application under
    15  section 1747-A(11).
    16     (c)  School district.--A cyber charter school shall make
    17  available upon request, either in writing or electronically, to
    18  each student's school district of residence the following:
    19         (1)  A copy of the charter.
    20         (2)  A copy of the cyber charter school application.
    21         (3)  A copy of all annual reports prepared by the cyber
    22     charter school.
    23         (4)  A list of all students from that school district
    24     enrolled in the cyber charter school.
    25     (d)  Parent or guardian.--Upon request and prior to the
    26  student's first day in a cyber charter school, the cyber charter
    27  school shall, either in writing or electronically, provide to
    28  the parent or guardian of a student the following:
    29         (1)  A list and brief description of the courses of
    30     instruction the student will receive. The list shall be
    20070H0446B0494                  - 9 -     

     1     updated annually for each grade level in which the student is
     2     enrolled.
     3         (2)  A description of the lessons and activities to be
     4     offered both online and offline.
     5         (3)  The manner in which attendance will be reported and
     6     work will be authenticated.
     7         (4)  A list of all standardized tests the student will be
     8     required to take during the school year and the place where
     9     the test will be administered, if available.
    10         (5)  The meetings to be held during the school year
    11     between a parent or guardian and a teacher and among other
    12     school officials or parents or guardians and the manner in
    13     which the parent or guardian will be notified of the time and
    14     place for the meeting.
    15         (6)  The address of the cyber charter school and the
    16     name, telephone number and e-mail address of the school
    17     administrator and other school personnel.
    18         (7)  A list of any extracurricular activities provided by
    19     the cyber charter school.
    20         (8)  The names of the student's teachers, if available,
    21     and the manner in which each teacher can be contacted by the
    22     student or the parent or guardian.
    23         (9)  A list of all services that will be provided to the
    24     student by the cyber charter school.
    25         (10)  Copies of policies relating to computer security
    26     and privacy, truancy, absences, discipline and withdrawal or
    27     expulsion of students.
    28         (11)  Information on:
    29             (i)  The cyber charter school's professional staff,
    30         including the number of staff personnel, their education
    20070H0446B0494                 - 10 -     

     1         level and experience.
     2             (ii)  The cyber charter school's performance on the
     3         PSSA and other standardized test scores.
     4         (12)  Information regarding the proper usage of equipment
     5     and materials and the process for returning equipment and
     6     materials supplied to the students by the cyber charter
     7     school. A parent or guardian shall acknowledge, either in
     8     writing or electronically, the receipt of this information.
     9         (13)  A description of the school calendar, including,
    10     but not limited to, the time frame that will constitute a
    11     school year and a school week, holidays and term breaks.
    12     (e)  Students.--For each student enrolled, a cyber charter
    13  school shall:
    14         (1)  provide all instructional materials;
    15         (2)  provide all equipment, including, but not limited
    16     to, a computer, computer monitor and printer; and
    17         (3)  provide or reimburse for all technology and services
    18     necessary for the on-line delivery of the curriculum and
    19     instruction.
    20  The Commonwealth shall not be liable for any reimbursement owed
    21  to students, parents or guardians by a cyber charter school
    22  under paragraph (3).
    23     (f)  Annual report.--A cyber charter school shall submit an
    24  annual report no later than August 1 of each year to the
    25  department in the form prescribed by the department.
    26     (g)  Records and facilities.--A cyber charter school shall
    27  provide the department with ongoing access to all records and
    28  facilities necessary for the department to assess the cyber
    29  charter school in accordance with the provisions of this
    30  subdivision.
    20070H0446B0494                 - 11 -     

     1     (h)  Offices and facilities.--A cyber charter school shall
     2  maintain an administrative office within this Commonwealth where
     3  all student records shall be maintained at all times and shall
     4  provide the department with the addresses of all offices and
     5  facilities of the cyber charter school, the ownership thereof
     6  and any lease arrangements. The administrative office of the
     7  cyber charter school shall be considered as the principal place
     8  of business for service of process for any action brought
     9  against the cyber charter school or cyber charter school staff
    10  members. The cyber charter school shall notify the department of
    11  any changes in this information within ten days of the change.
    12     (i)  Applicable law.--Any action taken against the cyber
    13  charter school, its successors or assigns or its employees,
    14  including any cyber charter school staff member as defined in
    15  the act of December 12, 1973 (P.L.397, No.141), known as the
    16  Professional Educator Discipline Act, shall be governed by the
    17  laws of this Commonwealth. If the department initiates an
    18  investigation or pursues an action pursuant to the Professional
    19  Educator Discipline Act involving any current or former charter
    20  school staff member outside this Commonwealth, any reasonable
    21  expenses incurred by the department in such investigation or
    22  action shall be paid by the cyber charter school which employed
    23  that staff member at the time of the alleged misconduct.
    24  Section 1744-A.  School district and intermediate unit
    25                     responsibilities.
    26     An intermediate unit or a school district in which a student
    27  enrolled in a cyber charter school resides shall do all of the
    28  following:
    29         (1)  Provide the cyber charter school within ten days of
    30     receipt of the notice of the admission of the student under
    20070H0446B0494                 - 12 -     

     1     section 1748-A(a) with all records relating to the student,
     2     including transcripts, test scores and a copy of any
     3     individualized education program for that student.
     4         (2)  Provide the cyber charter school with reasonable
     5     access to its facilities for the administration of
     6     standardized tests required under this subdivision.
     7         (3)  Upon request, provide assistance to the cyber
     8     charter school in the delivery of services to a student with
     9     disabilities. The school district or intermediate unit shall
    10     not charge the cyber charter school more for a service than
    11     it charges a school district.
    12         (4)  Make payments to the cyber charter school under
    13     section 1725-A.
    14  Section 1745-A.  Establishment of cyber charter school.
    15     (a)  Establishment.--A cyber charter school may be
    16  established by an individual; one or more teachers who will
    17  teach at the proposed cyber charter school; parents or guardians
    18  of students who will enroll in the cyber charter school; a
    19  nonsectarian college, university or museum located in this
    20  Commonwealth; a nonsectarian corporation not-for-profit as
    21  defined in 15 Pa.C.S. § 5103 (relating to definitions); a
    22  corporation, association or partnership; or any combination of
    23  the foregoing. Section 1327.1 shall not apply to a cyber charter
    24  school established under this subdivision.
    25     (b)  Sectarian entities.--No cyber charter school shall be
    26  established or funded by and no charter shall be granted to a
    27  sectarian school, institution or other entity.
    28     (c)  Attendance.--Attendance at a cyber charter school shall
    29  satisfy requirements for compulsory attendance.
    30     (d)  Application.--An application to establish a cyber
    20070H0446B0494                 - 13 -     

     1  charter school shall be submitted to the department by October 1
     2  of the school year preceding the school year in which the cyber
     3  charter school proposes to commence operation.
     4     (e)  Grant or denial.--Within 120 days of receipt of an
     5  application, the department shall grant or deny the application.
     6  The department shall review the application and shall hold at
     7  least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
     8  open meetings). At least 30 days prior to the hearing, the
     9  department shall publish in the Pennsylvania Bulletin and on the
    10  department's World Wide Web site notice of the hearing and the
    11  purpose of the application.
    12     (f)  Evaluation criteria.--
    13         (1)  A cyber charter school application submitted under
    14     this subdivision shall be evaluated by the department based
    15     on the following criteria:
    16             (i)  The demonstrated, sustainable support for the
    17         cyber charter school plan by teachers, parents or
    18         guardians and students.
    19             (ii)  The capability of the cyber charter school
    20         applicant, in terms of support and planning, to provide
    21         comprehensive learning experiences to students under the
    22         charter.
    23             (iii)  The extent to which the programs outlined in
    24         the application will enable students to meet the academic
    25         standards under 22 Pa. Code Ch. 4 (relating to academic
    26         standards and assessment) or subsequent regulations
    27         promulgated to replace 22 Pa. Code Ch. 4.
    28             (iv)  The extent to which the application meets the
    29         requirements of section 1747-A.
    30             (v)  The extent to which the cyber charter school may
    20070H0446B0494                 - 14 -     

     1         serve as a model for other public schools.
     2         (2)  Written notice of the action of the department shall
     3     be sent by certified mail to the applicant and published on
     4     the department's World Wide Web site. If the application is
     5     denied, the reasons for denial, including a description of
     6     deficiencies in the application, shall be clearly stated in
     7     the notice.
     8         (3)  Upon approval of a cyber charter school application,
     9     a written charter shall be developed which shall contain the
    10     provisions of the charter application and be signed by the
    11     secretary and each member of the board of trustees of the
    12     cyber charter school. The charter, when duly signed, shall
    13     act as legal authorization of the establishment of a cyber
    14     charter school. The charter shall be legally binding on the
    15     department, the cyber charter school and its board of
    16     trustees. The charter shall be for a period of no less than
    17     three years nor more than five years and may be renewed for a
    18     period of five years by the department.
    19         (4)  The decision of the department to deny an
    20     application may be appealed to the appeal board.
    21     (g)  Denied application.--A cyber charter school applicant
    22  may revise and resubmit a denied application to the department.
    23  The department shall grant or deny the revised application
    24  within 60 days after its receipt.
    25     (h)  Appeal.--If the department fails to hold the required
    26  public hearing or to approve or disapprove the charter, the
    27  applicant may file its application as an appeal to the appeal
    28  board. The appeal board shall review the application and make a
    29  decision to approve or disapprove the charter based on the
    30  criteria in subsection (f).
    20070H0446B0494                 - 15 -     

     1  Section 1746-A.  State Charter School Appeal Board review.
     2     (a)  Jurisdiction.--The appeal board shall have the exclusive
     3  review of an appeal by a cyber charter school applicant or by
     4  the board of trustees of a cyber charter school on the decisions
     5  of the department, including:
     6         (1)  The denial of an application for a charter.
     7         (2)  The denial of a renewal of a charter.
     8         (3)  The revocation of a charter.
     9         (4)  An appeal under section 1745-A(h).
    10     (b)  Procedure.--The appeal board shall:
    11         (1)  Review the decision made by the department under
    12     subsection (a) on the record as certified by the department.
    13     The secretary shall recuse himself from all cyber charter
    14     school appeals and shall not participate in a hearing,
    15     deliberation or vote on a cyber charter school appeal. The
    16     appeal board may allow the department, the cyber charter
    17     school applicant or the board of trustees of a cyber charter
    18     school to supplement the record if the supplemental
    19     information was previously unavailable.
    20         (2)  Meet to officially review the certified record no
    21     later than 30 days after the date of filing the appeal.
    22         (3)  Issue a written decision affirming or denying the
    23     appeal no later than 60 days following its review.
    24         (4)  In the case of a decision by the department to deny
    25     a cyber charter application, make its decision based on
    26     section 1745-A(f)(1). A decision by the appeal board to
    27     reverse the decision of the department and grant a charter
    28     shall serve as a requirement for the secretary to sign the
    29     written charter of the cyber charter school.
    30         (5)  In the case of a decision by the department to
    20070H0446B0494                 - 16 -     

     1     revoke or deny renewal of a cyber school charter in
     2     accordance with section 1741-A(a)(3), make its decision based
     3     on section 1729-A(a). A decision of the appeal board to
     4     reverse the decision of the department to not revoke or deny
     5     renewal of a charter shall serve as a requirement of the
     6     department to not revoke or to not deny renewal of the
     7     charter of the cyber charter school.
     8     (c)  Stay.--If the department appeals the decision of the
     9  appeal board, the appeal board's decision shall be stayed only
    10  upon order of the appeal board, the Commonwealth Court or the
    11  Pennsylvania Supreme Court.
    12     (d)  Review.--All decisions of the appeal board shall be
    13  subject to appellate review by the Commonwealth Court.
    14  Section 1747-A.  Cyber charter school application.
    15     In addition to the provisions of section 1719-A, an
    16  application to establish a cyber charter school shall also
    17  include the following:
    18         (1)  The curriculum to be offered and how it meets the
    19     requirements of 22 Pa. Code Ch. 4 (relating to academic
    20     standards and assessment) or subsequent regulations
    21     promulgated to replace 22 Pa. Code Ch. 4.
    22         (2)  The number of courses required for elementary and
    23     secondary students.
    24         (3)  An explanation of the amount of on-line time
    25     required for elementary and secondary students.
    26         (4)  The manner in which teachers will deliver
    27     instruction, assess academic progress and communicate with
    28     students to provide assistance.
    29         (5)  A specific explanation of any cooperative learning
    30     opportunities, meetings with students, parents and guardians,
    20070H0446B0494                 - 17 -     

     1     field trips or study sessions.
     2         (6)  The technology, including types of hardware and
     3     software, equipment and other materials which will be
     4     provided by the cyber charter school to the student.
     5         (7)  A description of how the cyber charter school will
     6     define and monitor a student's school day, including the
     7     delineation of on-line and off-line time.
     8         (8)  A description of commercially prepared standardized
     9     achievement tests that will be used by the cyber charter
    10     school in addition to the Pennsylvania System of School
    11     Assessment test, including the grade levels that will be
    12     tested and how the data collected from the tests will be used
    13     to improve instruction.
    14         (9)  The technical support that will be available to
    15     students and parents or guardians.
    16         (10)  The privacy and security measures to ensure the
    17     confidentiality of data gathered online.
    18         (11)  The level of anticipated enrollment during each
    19     school year of the proposed charter, including expected
    20     increases due to the addition of grade levels.
    21         (12)  The methods to be used to insure the authenticity
    22     of student work and adequate proctoring of examinations.
    23         (13)  The provision of education and related services to
    24     students with disabilities, including evaluation and the
    25     development and revision of individualized education
    26     programs.
    27         (14)  Policies regarding truancy, absences and withdrawal
    28     of students, including the manner in which the cyber charter
    29     school will monitor attendance consistent with the provisions
    30     of section 1715-A(9).
    20070H0446B0494                 - 18 -     

     1         (15)  The types and frequency of communication between
     2     the cyber charter school and the student and the manner in
     3     which the cyber charter school will communicate with parents
     4     and guardians.
     5         (16)  The addresses of all facilities and offices of the
     6     cyber charter school, the ownership thereof and any lease
     7     arrangements.
     8  Section 1748-A.  Enrollment and notification.
     9     (a)  Notice to school district.--
    10         (1)  Within 15 days of the enrollment of a student to a
    11     cyber charter school, the parent or guardian and the cyber
    12     charter school shall notify the student's school district of
    13     residence of the enrollment through the use of the
    14     notification form under subsection (b).
    15         (2)  If a school district which has received notice under
    16     paragraph (1) determines that a student is not a resident of
    17     the school district, the following apply:
    18             (i)  Within seven days of receipt of the notice under
    19         paragraph (1), the school district shall notify the cyber
    20         charter school and the department that the student is not
    21         a resident of the school district. Notification of
    22         nonresidence shall include the basis for the
    23         determination.
    24             (ii)  Within seven days of notification under
    25         subparagraph (i), the cyber charter school shall review
    26         the notification of nonresidence, respond to the school
    27         district and provide a copy of the response to the
    28         department. If the cyber charter school agrees that a
    29         student is not a resident of the school district, it
    30         shall determine the proper district of residence of the
    20070H0446B0494                 - 19 -     

     1         student before requesting funds from another school
     2         district.
     3             (iii)  Within seven days of receipt of the response
     4         under subparagraph (ii), the school district shall notify
     5         the cyber charter school that it agrees with the cyber
     6         charter school's determination or does not agree with the
     7         cyber charter school's determination.
     8             (iv)  A school district that has notified the cyber
     9         charter school that it does not agree with the cyber
    10         charter school's determination under subparagraph (iii)
    11         shall appeal to the department for a final determination.
    12             (v)  All decisions of the department regarding the
    13         school district of residence of a student shall be
    14         subject to review by the Commonwealth Court.
    15             (vi)  A school district shall continue to make
    16         payments to a cyber charter school under section 1725-A
    17         during the time in which the school district of residence
    18         of a student is in dispute.
    19             (vii)  If a final determination is made that a
    20         student is not a resident of an appealing school
    21         district, the cyber charter school shall return all funds
    22         provided on behalf of that student to the school district
    23         within 30 days.
    24     (b)  Notification form.--The department shall develop a
    25  notification form for use under subsection (a). The notification
    26  shall include:
    27         (1)  The name, home address and mailing address of the
    28     student.
    29         (2)  The grade in which the student is being enrolled.
    30         (3)  The date the student will be enrolled.
    20070H0446B0494                 - 20 -     

     1         (4)  The name and address of the cyber charter school and
     2     the name and telephone number of a contact person able to
     3     provide information regarding the cyber charter school.
     4         (5)  The signature of the parent or guardian and an
     5     authorized representative of the cyber charter school.
     6     (c)  Withdrawal.--The cyber charter school and the parent or
     7  guardian of a student enrolled in a cyber charter school shall
     8  provide written notification to the student's school district of
     9  residence within 15 days following the withdrawal of a student
    10  from the cyber charter school.
    11  Section 1749-A.  Applicability of other provisions of this act
    12                     and of other acts and regulations.
    13     (a)  General requirements.--Cyber charter schools shall be
    14  subject to the following:
    15         (1)  Sections 108, 110, 111, 321, 325, 326, 327, 431,
    16     436, 443, 510, 518, 527, 708, 752, 753, 755, 771, 776, 777,
    17     808, 809, 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301,
    18     1302, 1310, 1317.2, 1318, 1330, 1332, 1303-A, 1518, 1521,
    19     1523, 1531, 1547, 1702-A, 1703-A, 1714-A, 1715-A, 1716-A,
    20     1719-A, 1721-A, 1722-A, 1723-A(a) and (b), 1724-A, 1725-A,
    21     1727-A, 1729-A, 1730-A, 1731-A(a)(1) and (b) and 2014-A and
    22     Articles XII-A, XIII-A and XIV.
    23         (2)  The act of July 17, 1961 (P.L.776, No.341), known as
    24     the Pennsylvania Fair Educational Opportunities Act.
    25         (3)  The act of July 19, 1965 (P.L.215, No.116), entitled
    26     "An act providing for the use of eye protective devices by
    27     persons engaged in hazardous activities or exposed to known
    28     dangers in schools, colleges and universities."
    29         (4)  Section 4 of the act of January 25, 1966 (1965
    30     P.L.1546, No.541), entitled "An act providing scholarships
    20070H0446B0494                 - 21 -     

     1     and providing funds to secure Federal funds for qualified
     2     students of the Commonwealth of Pennsylvania who need
     3     financial assistance to attend postsecondary institutions of
     4     higher learning, making an appropriation, and providing for
     5     the administration of this act."
     6         (5)  The act of July 12, 1972 (P.L.765, No.181) entitled
     7     "An act relating to drugs and alcohol and their abuse,
     8     providing for projects and programs and grants to educational
     9     agencies, other public or private agencies, institutions or
    10     organizations."
    11         (6)  The act of December 15, 1986 (P.L.1595, No.175),
    12     known as the Antihazing Law.
    13     (b)  Regulations.--Cyber charter schools shall be subject to
    14  the following provisions of 22 Pa. Code (relating to education):
    15         (1)  Chapter 4 (relating to academic standards and
    16     assessment).
    17         (2)  Chapter 11 (relating to pupil attendance).
    18         (3)  Chapter 12 (relating to students).
    19         (4)  Section 32.3 (relating to assurances).
    20         (5)  Section 121.3 (relating to discrimination
    21     prohibited).
    22         (6)  Section 235.4 (relating to practices).
    23         (7)  Section 235.8 (relating to civil rights).
    24         (8)  Chapter 711 (relating to charter school services and
    25     programs for children with disabilities).
    26     (c)  Existing charter schools.--
    27         (1)  The charter of a charter school approved under
    28     section 1717-A or 1718-A which provides instruction through
    29     the Internet or other electronic means shall remain in effect
    30     for the duration of the charter and shall be subject to the
    20070H0446B0494                 - 22 -     

     1     provisions of Subdivision (b).
     2         (2)  In addition to subsections (a) and (b), the
     3     following provisions of this subdivision shall apply to a
     4     charter school approved under section 1717-A or 1718-A which
     5     provides instruction through the Internet or other electronic
     6     means:
     7             (i)  Section 1743-A(c), (d), (e), (h) and (i).
     8             (ii)  Section 1744-A.
     9             (iii)  Section 1748-A.
    10  Section 1750-A.  Effect on certain existing charter schools.
    11     (a)  Determination.--For a charter school approved under
    12  section 1717-A or 1718-A which provides instruction through the
    13  Internet or other electronic means, prior to August 15, 2002,
    14  the department shall determine:
    15         (1)  whether the charter school is in compliance with
    16     this subdivision;
    17         (2)  whether the charter school has provided notification
    18     of the enrollment of each existing student to the school
    19     district of residence; and
    20         (3)  how the charter school plans to comply with section
    21     1743-A(d).
    22     (b)  Notification of compliance.--Prior to August 15, 2002,
    23  the department shall:
    24         (1)  Notify each charter school and the chartering school
    25     district of the department's determination under subsection
    26     (a). The notification shall include specific requirements
    27     with which the charter school has failed to comply.
    28         (2)  Publish a copy of the notification on the
    29     department's World Wide Web site.
    30     (c)  Charter school requirement.--A charter school subject to
    20070H0446B0494                 - 23 -     

     1  the requirements of this section shall, either in writing or
     2  electronically, provide the parent or guardian of any student
     3  enrolled in the charter school a copy of the department's
     4  determination under subsection (b).
     5     (d)  School districts.--A school district shall not renew the
     6  charter of a charter school approved under section 1717-A or
     7  1718-A which provides instruction through the Internet or other
     8  electronic means or approve a charter for a cyber charter
     9  school.
    10     (e)  Renewal of charter for certain existing charter
    11  schools.--Upon the expiration of its charter, a charter school
    12  approved under section 1717-A or 1718-A which provides
    13  instruction through the Internet or other electronic means shall
    14  seek renewal of its charter from the department under this
    15  subdivision. The charter shall be amended as needed to reflect
    16  the requirements of this subdivision.
    17  Section 1751-A.  Regulations.
    18     The department may issue regulations to implement this
    19  subdivision.]
    20     Section 5.  The act is amended by adding an article to read:
    21                           ARTICLE XVII-C
    22                       CHARTER CYBER SCHOOLS
    23                    (a)  Preliminary Provisions
    24  Section 1701-C.  Scope.
    25     This article deals with charter cyber schools.
    26  Section 1702-C.  Definitions.
    27     The following words and phrases when used in this article
    28  shall have the meanings given to them in this section unless the
    29  context clearly indicates otherwise:
    30     "Appeal board."  The State Charter School Appeal Board
    20070H0446B0494                 - 24 -     

     1  established by Article XVII-A.
     2     "At-risk student."  A student at risk of educational failure
     3  because of limited English proficiency, poverty, community
     4  factors, truancy, academic difficulties or economic
     5  disadvantage.
     6     "Charter cyber school."  An independent public school
     7  established and operated under a charter from the Department of
     8  Education and in which the school uses technology in order to
     9  provide a significant portion of its curriculum and to deliver a
    10  significant portion of instruction to its students through the
    11  Internet or other electronic means. A charter cyber school must
    12  be organized as a public, nonprofit corporation. A charter may
    13  not be granted to a for-profit entity.
    14     "Chief executive officer."  An individual appointed by the
    15  board of trustees to oversee and manage the operation of the
    16  charter cyber school, but who shall not be deemed a professional
    17  staff member under this article.
    18     "Department."  The Department of Education of the
    19  Commonwealth.
    20     "School district of residence."  The school district in this
    21  Commonwealth in which the parents or guardians of a child
    22  reside.
    23     "Secretary."  The Secretary of Education of the Commonwealth.
    24     "State board."  The State Board of Education.
    25                          (b)  Governance
    26  Section 1711-C.  Powers of charter cyber schools.
    27     (a)  General powers.--A charter cyber school established
    28  under this article is a body corporate and shall have all powers
    29  necessary or desirable for carrying out its charter, including,
    30  but not limited to, the power to:
    20070H0446B0494                 - 25 -     

     1         (1)  Adopt a name and corporate seal; however, any name
     2     selected shall include the words "charter cyber school."
     3         (2)  Sue and be sued, but only to the same extent and
     4     upon the same condition that political subdivisions and local
     5     agencies can be sued.
     6         (3)  Acquire real property from public or private sources
     7     by lease or gift for use as a charter cyber school facility.
     8         (4)  Receive and disburse budgeted funds for charter
     9     school purposes only. The funds shall not be used for any
    10     other purpose, or transferred, except by resolution of the
    11     board of trustees receiving the affirmative vote of two-
    12     thirds of the members thereof. Whenever Federal or State
    13     funds are made available to charter cyber schools, the funds
    14     may be expended by the board of trustees for the purposes for
    15     which they are made available even though the provisions
    16     therefor were not made in the annual estimates or budget of
    17     the charter cyber entity.
    18         (5)  Make contracts and leases for the procurement of
    19     services, equipment and supplies.
    20         (6)  Incur temporary debts in anticipation of the receipt
    21     of funds.
    22         (7)  Solicit and accept any gifts or grants for charter
    23     cyber school purposes.
    24     (b)  Additional powers.--A charter cyber school shall have
    25  such other powers as are necessary to fulfill its charter and
    26  which are not inconsistent with this article.
    27     (c)  Indebtedness.--Any indebtedness incurred by a charter
    28  cyber school in the exercise of the powers specified in this
    29  section shall not impose any liability or legal obligation upon
    30  the Commonwealth.
    20070H0446B0494                 - 26 -     

     1  Section 1712-C.  Powers of board of trustees.
     2     (a)  General powers.--The board of trustees of a charter
     3  cyber school shall have the authority to decide matters related
     4  to the operation of the school, including, but not limited to,
     5  budgeting, except as set forth in sections 2528 and 2529,
     6  curriculum and operating procedures, subject to the school's
     7  charter. The board shall have the authority to employ, discharge
     8  and contract with necessary professional and nonprofessional
     9  employees subject to the school's charter and the provisions of
    10  this article.
    11     (b)  Compliance with Sunshine Act.--The board of trustees
    12  shall comply with 65 Pa.C.S. Ch. 7 (relating to open meetings).
    13     (c)  Conflict of interest.--No member of the board of
    14  trustees or employee of the charter cyber school may do business
    15  with the school or the management of the school nor may a person
    16  affiliated with the management of the school sit on the board of
    17  trustees.
    18  Section 1713-C.  Term and form of charter.
    19     (a)  Written charter.--Upon approval of a charter application
    20  under section 1727-C, a written charter shall be developed which
    21  shall contain the provisions of the charter application and
    22  which shall be signed by the department or by the chairman of
    23  the appeal board pursuant to section 1727-C(j) and the board of
    24  trustees of the charter cyber school. This written charter, when
    25  duly signed by the department and the charter cyber school's
    26  board of trustees, shall act as legal authorization for the
    27  establishment of a charter cyber school. This written charter
    28  shall be legally binding on both the department and the charter
    29  cyber school's board of trustees.
    30     (b)  Term.--The charter shall be for a period of no less than
    20070H0446B0494                 - 27 -     

     1  three nor more than five years and may be renewed for five-year
     2  periods upon reauthorization by the department or the appeal
     3  board.
     4     (c)  Organization.--A charter will be granted only for a
     5  school organized as a public, nonprofit corporation.
     6  Section 1714-C.  Facilities.
     7     (a)  Location.--A charter cyber school may be located in any
     8  suitable location.
     9     (b)  Exemption from regulation.--The charter cyber school
    10  facility shall be exempt from public school facility regulations
    11  except those pertaining to the health or safety of the pupils.
    12  Section 1715-C.  School staff.
    13     (a)  Requirements.--The board of trustees shall determine the
    14  level of compensation and all terms and conditions of employment
    15  of the staff except as may otherwise be provided in this
    16  article. At least 75% of the professional staff members of a
    17  charter cyber school shall hold appropriate State certification.
    18  Employees of a charter cyber school may organize under the act
    19  of July 23, 1970 (P.L.563, No.195), known as the Public Employe
    20  Relations Act. The board of trustees of a charter cyber school
    21  shall be considered an employer for the purposes of Article XI-
    22  A. Upon formation of one or more collective bargaining units at
    23  the school, the board of trustees shall bargain with the
    24  employees based on the provisions of this article, Article XI-A
    25  and the Public Employe Relations Act. Collective bargaining
    26  units at a charter cyber school shall be separate from any
    27  collective bargaining unit of the school district in which the
    28  charter cyber school is located and shall be separate from any
    29  other collective bargaining unit. A charter cyber school shall
    30  be considered a school entity as provided for in section 1161-A
    20070H0446B0494                 - 28 -     

     1  for the purpose of the secretary seeking an injunction requiring
     2  the charter cyber school to meet the minimum requirements for
     3  instruction as provided for in this article.
     4     (b)  Qualifications.--Each charter application shall list the
     5  general qualifications needed to staff any noncertified
     6  positions. Professional employees who do not hold appropriate
     7  Pennsylvania certification must present evidence that they:
     8         (1)  Meet the qualifications in sections 1109 and 1209.
     9         (2)  Have demonstrated satisfactorily a combination of
    10     experience, achievement and qualifications as defined in the
    11     charter cyber school application in basic skills, general
    12     knowledge, professional knowledge and practice and subject
    13     matter knowledge in the subject area where an individual will
    14     teach.
    15     (c)  Retirement and social security.--All employees of a
    16  charter cyber school shall be enrolled in the Public School
    17  Employees' Retirement System in the same manner as set forth in
    18  24 Pa.C.S. § 8301(a) (relating to mandatory and optional
    19  membership). The Commonwealth shall make contributions on behalf
    20  of charter cyber school employees, and the charter cyber school
    21  shall be considered a school district and shall make payments by
    22  employers and payments on account of Social Security as
    23  established under 24 Pa.C.S. Pt. IV (relating to retirement for
    24  school employees). For purposes of payments by employers, a
    25  charter cyber school shall be considered a school district under
    26  24 Pa.C.S. § 8329(a)(1) (relating to payments on account of
    27  social security deductions from appropriations). The market
    28  value/income aid ratio used in calculating payments as
    29  prescribed in this subsection shall be a composite market
    30  value/income aid ratio for the participating school districts as
    20070H0446B0494                 - 29 -     

     1  determined by the department. Except as otherwise provided,
     2  employees of a charter cyber school shall make regular member
     3  contributions as required for active members under 24 Pa.C.S.
     4  Pt. IV. For purposes of this subsection, a charter cyber school
     5  shall be deemed to be a "public school" as defined in 24 Pa.C.S.
     6  § 8102 (relating to definitions).
     7     (d)  Health care benefits.--Every employee of a charter cyber
     8  school shall be provided the same health care benefits as the
     9  employee would be provided if the employee were an employee of
    10  the local district. The charter school shall make any required
    11  employer's contribution to the district's health plan to an
    12  insurer, a local board of school directors or a contractual
    13  representative of school employees, whichever is appropriate to
    14  provide the required coverage.
    15     (e)  Certification.--Professional employees who hold a first
    16  level teaching or administrative certificate may, at their
    17  option, have the time completed in satisfactory service in a
    18  charter cyber school applied to the length of service
    19  requirements for the next level of certification.
    20     (f)  Criminal history.--All applicants for a position as a
    21  charter cyber school employee who shall have direct contact or
    22  electronic contact via the Internet or e-mail with students
    23  shall be required to submit a report of criminal history record
    24  information as provided for in section 111 prior to accepting a
    25  position with the charter cyber school. This subsection shall
    26  also apply to any individual who volunteers to work on a full-
    27  time or part-time basis at the charter cyber school.
    28     (g)  Child abuse clearance.--All applicants for a position as
    29  a school employee shall be required to submit the official
    30  clearance statement regarding child injury or abuse from the
    20070H0446B0494                 - 30 -     

     1  Department of Public Welfare as required by 23 Pa.C.S. Ch. 63
     2  Subch. C.2 (relating to background checks for employment in
     3  schools). This section shall also apply to any individual who
     4  volunteers to work on a full-time or part-time basis at a
     5  charter cyber school.
     6  Section 1716-C.  Tort liability.
     7     For purposes of tort liability, employees of the charter
     8  cyber school shall be considered public employees and the board
     9  of trustees shall be considered the public employer in the same
    10  manner as political subdivisions and local agencies. The board
    11  of trustees of a charter cyber school and the charter cyber
    12  school shall be solely liable for any and all damages of any
    13  kind resulting from any legal challenge involving the operation
    14  of a charter cyber school. Notwithstanding this requirement, the
    15  local board of directors of a school entity shall not be held
    16  liable for any activity or operation related to the program of
    17  the charter cyber school.
    18  Section 1717-C.  Causes for nonrenewal or termination.
    19     (a)  Revocation.--During the term of the charter or at the
    20  end of the term of the charter, the department may choose to
    21  revoke or not to renew the charter based on any of the
    22  following:
    23         (1)  One or more material violations of any of the
    24     conditions, standards or procedures contained in the written
    25     charter signed pursuant to section 1713-C.
    26         (2)  Failure to meet the requirements for student
    27     performance set forth in 22 Pa. Code Ch. 4 (relating to
    28     academic standards and assessment) or subsequent regulations
    29     promulgated to replace 22 Pa. Code Ch. 4 or failure to meet
    30     any performance standard set forth in the written charter
    20070H0446B0494                 - 31 -     

     1     signed pursuant to section 1713-C.
     2         (3)  Failure to meet generally accepted standards of
     3     fiscal management or audit requirements.
     4         (4)  Violation of provisions of this article.
     5         (5)  Violation of any provision of law from which the
     6     charter cyber school has not been exempted, including Federal
     7     laws and regulations governing children with disabilities.
     8         (6)  The charter cyber school has been convicted of
     9     fraud.
    10     (b)  Disqualification.--A member of the board of trustees who
    11  is convicted of a felony or any crime involving moral turpitude
    12  shall be immediately disqualified from serving on the board of
    13  trustees.
    14     (c)  Notice.--Any notice of revocation or nonrenewal of a
    15  charter given by the department shall state the grounds for the
    16  action with reasonable specificity and give reasonable notice to
    17  the governing board of the charter cyber school of the date on
    18  which a public hearing concerning the revocation or nonrenewal
    19  will be held. The department shall conduct the hearing, present
    20  evidence in support of the grounds for revocation or nonrenewal
    21  stated in its notice and give the charter cyber school
    22  reasonable opportunity to offer testimony before taking final
    23  action. Formal action revoking or not renewing a charter shall
    24  be taken by the department at a public meeting pursuant to 65
    25  Pa.C.S. Ch. 7 (relating to open meetings) after the public has
    26  had 30 days to provide comments to the department. All
    27  proceedings of the department pursuant to this subsection shall
    28  be subject to 2 Pa.C.S. Ch. 5 Subch. A (relating to practice and
    29  procedure of Commonwealth agencies). Except as provided in
    30  subsection (d), the decision of the department shall not be
    20070H0446B0494                 - 32 -     

     1  subject to 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial review
     2  of Commonwealth agency action).
     3     (d)  Appeal.--The charter cyber school may appeal the
     4  decision of the department to revoke or not renew the charter to
     5  the appeal board. The appeal board shall have the exclusive
     6  review of a decision not to renew or revoke a charter. The
     7  appeal board shall review the record and shall have the
     8  discretion to supplement the record if the supplemental
     9  information was previously unavailable. The appeal board may
    10  consider the charter cyber school plan, annual reports, student
    11  performance and employee and community support for the charter
    12  cyber school in addition to the record. The appeal board shall
    13  give due consideration to the findings of the department and
    14  specifically articulate its reasons for agreeing or disagreeing
    15  with those findings in its written decision.
    16     (e)  Determination.--If the appeal board determines that the
    17  charter should not be revoked or should be renewed, the appeal
    18  board shall order the department to rescind its revocation or
    19  nonrenewal decision.
    20     (f)  Status of charter.--Except as provided in subsection
    21  (g), the charter shall remain in effect until final disposition
    22  by the appeal board.
    23     (g)  Special circumstances.--In cases where the health or
    24  safety of the school's pupils, staff or both is at serious risk,
    25  the department may take immediate action to revoke a charter.
    26     (h)  Review by Commonwealth Court.--All decisions of the
    27  appeal board shall be subject to appellate review by the
    28  Commonwealth Court.
    29     (i)  Dissolution.--When a charter is revoked, not renewed,
    30  forfeited, surrendered or otherwise ceases to operate, the
    20070H0446B0494                 - 33 -     

     1  charter cyber school shall be dissolved. After the disposition
     2  of any liabilities and obligations of the charter cyber school,
     3  any remaining assets of the charter cyber school, both real and
     4  personal, shall be distributed on a proportional basis to the
     5  school entities with students enrolled in the charter cyber
     6  school for the last full or partial school year of the charter
     7  cyber school. In no event shall such school entities or the
     8  Commonwealth be liable for any outstanding liabilities or
     9  obligations of the charter cyber school.
    10     (j)  Students.--When a charter is revoked or is not renewed,
    11  a student who attended the charter cyber school shall apply to
    12  another public school in the student's school district of
    13  residence. Normal application deadlines will be disregarded
    14  under these circumstances. All student records maintained by the
    15  charter cyber school shall be forwarded within ten days to the
    16  student's district of residence.
    17                  (c)  Establishment and Operation
    18  Section 1721-C.  Powers and duties of department.
    19     (a)  Powers and duties.--The department shall:
    20         (1)  Receive, review and act on applications for the
    21     creation of a charter cyber school and have the power to
    22     request further information from applicants, obtain input
    23     from interested persons or entities and hold hearings
    24     regarding applications.
    25         (2)  Renew the charter of a charter cyber school and
    26     renew the charter of a charter school approved under section
    27     1717-A or 1718-A which provides instruction through the
    28     Internet or other electronic means. Upon renewal of a charter
    29     of a charter school approved under section 1717-C or 1718-C,
    30     the charter school shall qualify as a charter cyber school
    20070H0446B0494                 - 34 -     

     1     under this article and shall be subject to the provisions of
     2     this article.
     3         (3)  Revoke or deny renewal of a charter cyber school's
     4     charter under the provisions of section 1717-C.
     5             (i)  Notwithstanding the provisions of section 1717-
     6         C(i), when the department has revoked or denied renewal
     7         of a charter, the charter cyber school shall be
     8         dissolved. After the disposition of the liabilities and
     9         obligations of the charter cyber school, any remaining
    10         assets of the charter cyber school shall be given over to
    11         the department. Upon the transfer of assets from the
    12         charter cyber school to the department, the department
    13         shall equally distribute any remaining funds of the
    14         charter cyber school to the school entities that enroll
    15         the former charter cyber school students.
    16             (ii)  Notwithstanding any laws to the contrary, the
    17         department may, after notice and hearing, take immediate
    18         action to revoke a charter if:
    19                 (A)  a material component of the student's
    20             education as required under this article is not being
    21             provided; or
    22                 (B)  the charter cyber school has failed to
    23             maintain the financial ability to provide services as
    24             required under this article.
    25         (4)  Execute charters after approval.
    26         (5)  Develop forms, including the notification form under
    27     section 1731-C(c), necessary to carry out the provisions of
    28     this article.
    29         (6)  Provide for funding at charter cyber schools in
    30     accordance with section 2527.
    20070H0446B0494                 - 35 -     

     1     (b)  Hearings.--Hearings conducted by the department shall be
     2  conducted under 65 Pa.C.S. Ch. 7 (relating to open meetings).
     3     (c)  Documents.--Documents of the appeal board shall be
     4  subject to the act of June 21, 1957 (P.L.390, No.212), referred
     5  to as the Right-to-Know Law.
     6  Section 1722-C.  Assessment and evaluation.
     7     The department shall:
     8         (1)  Annually assess whether each charter cyber school is
     9     meeting the goals of its charter as required under section
    10     1726-C(5) and is in compliance with the provisions of the
    11     charter and conduct a comprehensive review prior to granting
    12     a five-year renewal of the charter.
    13         (2)  Annually review each charter cyber school's
    14     performance on the Pennsylvania System of School Assessment
    15     test, standardized tests and other performance indicators to
    16     ensure compliance with 22 Pa. Code Ch. 4 (relating to
    17     academic standards and assessment) or subsequent regulations
    18     promulgated to replace 22 Pa. Code Ch. 4.
    19         (3)  Have ongoing access to all records, instructional
    20     materials and student and staff records of each charter cyber
    21     school and to every charter cyber school facility to ensure
    22     the charter cyber school is in compliance with its charter
    23     and this article.
    24  Section 1723-C.  Charter cyber school requirements and
    25                     prohibitions.
    26     (a)  Special financial requirements prohibited.--A charter
    27  cyber school shall not:
    28         (1)  except as provided for in subsection (e), provide
    29     payments to parents or guardians for the purchase of
    30     instructional materials; or
    20070H0446B0494                 - 36 -     

     1         (2)  except as compensation for the provision of specific
     2     services, enter into agreements to provide funds to a school
     3     entity.
     4     (b)  Enrollment.--A charter cyber school shall report to the
     5  department an increase or a decrease of 15% or more in its
     6  anticipated enrollment set forth in the application under
     7  section 1729-C(11).
     8     (c)  Department.--A charter cyber school shall make available
     9  upon request, either in writing or electronically, to the
    10  department the following:
    11         (1)  A copy of the charter.
    12         (2)  A copy of the charter cyber school application.
    13         (3)  A copy of all annual reports prepared by the charter
    14     cyber school.
    15     (c.1)  School district.--A charter cyber school shall make
    16  available upon request, either in writing or electronically, to
    17  each student's school district of residence, a list of all
    18  students from that school district enrolled in the charter cyber
    19  school.
    20     (d)  Parent or guardian.--Upon request and prior to the
    21  student's first day in a charter cyber school, the charter cyber
    22  school shall, either in writing or electronically, provide to
    23  the parent or guardian of a student the following:
    24         (1)  A list and brief description of the courses of
    25     instruction the student will receive. The list shall be
    26     updated annually for each grade level in which the student is
    27     enrolled.
    28         (2)  A description of the lessons and activities to be
    29     offered both online and off-line.
    30         (3)  The manner in which attendance will be reported and
    20070H0446B0494                 - 37 -     

     1     work will be authenticated.
     2         (4)  A list of all standardized tests the student will be
     3     required to take during the school year and the place where
     4     the test will be administered, if available.
     5         (5)  The meetings to be held during the school year
     6     between a parent or guardian and a teacher and among other
     7     school officials or parents or guardians and the manner in
     8     which the parent or guardian will be notified of the time and
     9     place for the meeting.
    10         (6)  The address of the charter cyber school and the
    11     name, telephone number and e-mail address of the school
    12     administrator and other school personnel.
    13         (7)  A list of any extracurricular activities provided by
    14     the charter cyber school.
    15         (8)  The names of the student's teachers, if available,
    16     and the manner in which each teacher can be contacted by the
    17     student or the parent or guardian.
    18         (9)  A list of all services that will be provided to the
    19     student by the charter cyber school.
    20         (10)  Copies of policies relating to computer security
    21     and privacy, truancy, absences, discipline and withdrawal or
    22     expulsion of students.
    23         (11)  Information on:
    24             (i)  The charter cyber school's professional staff,
    25         including the number of staff personnel, their education
    26         level and experience.
    27             (ii)  The charter cyber school's performance on the
    28         PSSA test and other standardized test scores.
    29         (12)  Information regarding the proper usage of equipment
    30     and materials and the process for returning equipment and
    20070H0446B0494                 - 38 -     

     1     materials supplied to the students by the charter cyber
     2     school. A parent or guardian shall acknowledge, either in
     3     writing or electronically, the receipt of this information.
     4         (13)  A description of the school calendar, including,
     5     but not limited to, the time frame that will constitute a
     6     school year and a school week, holidays and term breaks.
     7     (e)  Students.--For each student enrolled, a charter cyber
     8  school shall:
     9         (1)  provide all instructional materials;
    10         (2)  provide all equipment, including, but not limited
    11     to, a computer, computer monitor and printer; and
    12         (3)  provide or reimburse for all technology and services
    13     necessary for the online delivery of the curriculum and
    14     instruction.
    15  The Commonwealth shall not be liable for any reimbursement owed
    16  to students, parents or guardians by a charter cyber school
    17  under paragraph (3).
    18     (f)  Annual report.--A charter cyber school shall submit an
    19  annual report no later than August 1 of each year to the
    20  department in the form prescribed by the department.
    21     (g)  Records and facilities.--A charter cyber school shall
    22  provide the department with ongoing access to all records and
    23  facilities necessary for the department to assess the charter
    24  cyber school in accordance with the provisions of this article.
    25     (h)  Offices and facilities.--A charter cyber school shall
    26  maintain an administrative office within this Commonwealth where
    27  all student records shall be maintained at all times and shall
    28  provide the department with the addresses of all offices and
    29  facilities of the charter cyber school, the ownership thereof
    30  and any lease arrangements. The administrative office of the
    20070H0446B0494                 - 39 -     

     1  charter cyber school shall be considered as the principal place
     2  of business for service of process for any action brought
     3  against the charter cyber school or charter cyber school staff
     4  members. The charter cyber school shall notify the department of
     5  any changes in this information within ten days of the change.
     6     (i)  Applicable law.--Any action taken against the charter
     7  cyber school, its successors or assigns or its employees,
     8  including any charter cyber school staff member as defined in
     9  the act of December 12, 1973 (P.L.397, No.141), known as the
    10  Professional Educator Discipline Act, shall be governed by the
    11  laws of this Commonwealth. If the department initiates an
    12  investigation or pursues an action pursuant to the Professional
    13  Educator Discipline Act involving any current or former charter
    14  cyber school staff member outside this Commonwealth, any
    15  reasonable expenses incurred by the department in such
    16  investigation or action shall be paid by the charter cyber
    17  school which employed that staff member at the time of the
    18  alleged misconduct.
    19  Section 1724-C.  Charter cyber school requirements.
    20     Charter cyber schools shall be required to comply with the
    21  following provisions:
    22         (1)  Except as otherwise provided in this article, a
    23     charter cyber school is exempt from statutory requirements
    24     established in this act, from regulations of the State board
    25     and the standards of the secretary not specifically
    26     applicable to charter cyber schools. Charter cyber schools
    27     are not exempt from statutes applicable to public schools
    28     other than this act.
    29         (2)  A charter cyber school shall be accountable to the
    30     parents, the public and the Commonwealth, with the
    20070H0446B0494                 - 40 -     

     1     delineation of that accountability reflected in the charter.
     2     Strategies for meaningful parent and community involvement
     3     shall be developed and implemented by each school.
     4         (3)  A charter cyber school shall not unlawfully
     5     discriminate in admissions, hiring or operation.
     6         (4)  A charter cyber school shall be nonsectarian in all
     7     operations.
     8         (5)  A charter cyber school shall not provide any
     9     religious instruction, nor shall it display religious objects
    10     and symbols on the premises of the charter cyber school.
    11         (6)  A charter cyber school shall not advocate unlawful
    12     behavior.
    13         (7)  A charter cyber school shall only be subject to the
    14     laws and regulations as provided for in this article.
    15         (8)  A charter cyber school shall participate in the
    16     Pennsylvania State Assessment System as provided for in 22
    17     Pa. Code Ch. 4 (relating to academic standards and
    18     assessment), or subsequent regulations promulgated to replace
    19     22 Pa. Code Ch. 4, in the manner in which the school district
    20     in which the charter cyber school is located is scheduled to
    21     participate.
    22         (9)  A charter cyber school shall provide a minimum of
    23     180 days of instruction or 900 hours per year of instruction
    24     at the elementary level, or 990 hours per year of instruction
    25     at the secondary level. Nothing in this paragraph shall
    26     preclude the use of computer and satellite linkages for
    27     delivering instruction to students.
    28         (10)  Boards of trustees and contractors of charter cyber
    29     schools shall be subject to the following statutory
    30     requirements governing construction projects and
    20070H0446B0494                 - 41 -     

     1     construction-related work:
     2             (i)  The following provisions of this act:
     3                 (A)  Sections 751 and 751.1.
     4                 (B)  Sections 756 and 757 insofar as they are
     5             consistent with the act of December 20, 1967
     6             (P.L.869, No.385), known as the Public Works
     7             Contractors' Bond Law of 1967.
     8             (ii)  Section 1 of the act of May 1, 1913 (P.L.155,
     9         No.104), referred to as the Separations Act.
    10             (iii)  The Public Works Contractors' Bond Law of
    11         1967.
    12             (iv)  The act of March 3, 1978 (P.L.6, No.3), known
    13         as the Steel Products Procurement Act.
    14         (11)  Trustees of a charter cyber school shall be public
    15     officials.
    16  Section 1725-C.  School district and intermediate unit
    17                     responsibilities.
    18     Subject to agreement between a charter cyber school and an
    19  intermediate unit or school district, the intermediate unit or a
    20  school district in which a student enrolled in a charter cyber
    21  school resides shall do all of the following:
    22         (1)  Provide the charter cyber school within ten days of
    23     receipt of the notice of the admission of the student under
    24     section 1731-C(a) with all records relating to the student,
    25     including transcripts, test scores and a copy of any
    26     individualized education program for that student.
    27         (2)  Enter into written agreements for the use of
    28     intermediate units or school facilities for, but not limited
    29     to, standardized testing or any program sponsored by the
    30     intermediate unit or school district.
    20070H0446B0494                 - 42 -     

     1         (3)  Upon request, provide assistance to the charter
     2     cyber school in the delivery of services to a student with
     3     disabilities. The school district or intermediate unit shall
     4     not charge the charter cyber school more for a service than
     5     it charges a school district.
     6  Section 1726-C.  Contents of application.
     7     An application to establish a charter cyber school shall
     8  include all of the following information:
     9         (1)  The identification of the charter applicant.
    10         (2)  The name of the proposed charter cyber school.
    11         (3)  The grade or age levels served by the school.
    12         (4)  The proposed governance structure of the charter
    13     cyber school, including a description and method for the
    14     appointment or election of members of the board of trustees.
    15     The board of trustees must include at least one member
    16     appointed by the secretary and two members who represent the
    17     intermediate unit serving that charter cyber school's region.
    18         (5)  The mission and education goals of the charter cyber
    19     school, the curriculum to be offered and the methods of
    20     assessing whether students are meeting educational goals.
    21         (6)  The admission policy and criteria for evaluating the
    22     admission of students which shall comply with the
    23     requirements of section 1730-C.
    24         (7)  Procedures which will be used regarding the
    25     suspension or expulsion of pupils. The procedures shall
    26     comply with section 1318.
    27         (8)  Information on the manner in which community groups
    28     will be involved in the charter cyber school planning
    29     process.
    30         (9)  The financial plan for the charter cyber school and
    20070H0446B0494                 - 43 -     

     1     the provisions which will be made for auditing the school
     2     under section 437.
     3         (10)  Procedures which shall be established to review
     4     complaints of parents regarding the operation of the charter
     5     cyber school.
     6         (11)  A description of and address of the physical
     7     facility in which the charter cyber school will be located
     8     and the ownership thereof and any lease arrangements.
     9         (12)  Information on the proposed school calendar for the
    10     charter cyber school, including the length of the school day
    11     and school year consistent with the provisions of section
    12     1502.
    13         (13)  The proposed faculty and a professional development
    14     plan for the faculty of a charter cyber school.
    15         (14)  Whether any agreements have been entered into or
    16     plans developed with the local school district regarding
    17     participation of the charter cyber school students in
    18     extracurricular activities within the school district.
    19         (15)  A report of criminal history record, pursuant to
    20     section 111, for all individuals who shall have direct
    21     contact or electronic contact via the Internet or e-mail with
    22     students.
    23         (16)  An official clearance statement regarding child
    24     injury or abuse from the Department of Public Welfare as
    25     required by 23 Pa.C.S. Ch. 63 Subch. C.2 (relating to
    26     background checks for employment in schools) for all
    27     individuals who shall have direct contact with students.
    28         (17)  How the charter cyber school will provide adequate
    29     liability and other appropriate insurance for the charter
    30     cyber school, its employees and the board of trustees of the
    20070H0446B0494                 - 44 -     

     1     charter cyber school.
     2  Section 1727-C.  Establishment of charter cyber school.
     3     (a)  Establishment.--A charter cyber school may be
     4  established by:
     5         (1)  an individual;
     6         (2)  one or more teachers who will teach at the proposed
     7     charter cyber school;
     8         (3)  parents or guardians of students who will enroll in
     9     the charter cyber school;
    10         (4)  a nonsectarian college, university or museum located
    11     in this Commonwealth;
    12         (5)  a nonsectarian corporation not-for-profit as defined
    13     in 15 Pa.C.S. § 5103 (relating to definitions);
    14         (6)  a corporation, association or partnership; or
    15         (7)  any combination of the entities listed in paragraph
    16     (1), (2), (3), (4), (5) or (6).
    17     (b)  Home education.--Section 1327.1 shall not apply to a
    18  charter cyber school established under this article.
    19     (c)  Sectarian entities.--No charter cyber school shall be
    20  established or funded by and no charter shall be granted to a
    21  sectarian school, institution or other entity.
    22     (d)  Attendance.--Attendance at a charter cyber school shall
    23  satisfy requirements for compulsory attendance.
    24     (e)  Application.--An application to establish a charter
    25  cyber school shall be submitted to the department by October 1
    26  of the school year preceding the school year in which the
    27  charter cyber school proposes to commence operation.
    28     (f)  Grant or denial.--Within 120 days of receipt of an
    29  application, the department shall grant or deny the application.
    30  The department shall review the application and shall hold at
    20070H0446B0494                 - 45 -     

     1  least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
     2  open meetings). At least 30 days prior to the hearing, the
     3  department shall publish in the Pennsylvania Bulletin and on the
     4  department's Internet website notice of the hearing and the
     5  purpose of the application.
     6     (g)  Evaluation criteria.--
     7         (1)  A charter cyber school application submitted under
     8     this article shall be evaluated by the department based on
     9     the following criteria:
    10             (i)  The demonstrated, sustainable support for the
    11         charter cyber school plan by teachers, parents or
    12         guardians and students.
    13             (ii)  The capability of the charter cyber school
    14         applicant, in terms of support and planning, to provide
    15         comprehensive learning experiences to students under the
    16         charter.
    17             (iii)  The extent to which the programs outlined in
    18         the application will enable students to meet the academic
    19         standards under 22 Pa. Code Ch. 4 (relating to academic
    20         standards and assessment) or subsequent regulations
    21         promulgated to replace 22 Pa. Code Ch. 4.
    22             (iv)  The extent to which the application meets the
    23         requirements of section 1729-C.
    24             (v)  The extent to which the charter cyber school may
    25         serve as a model for other public schools.
    26         (2)  Written notice of the action of the department shall
    27     be sent by certified mail to the applicant and published on
    28     the department's Internet website. If the application is
    29     denied, the reasons for denial, including a description of
    30     deficiencies in the application, shall be clearly stated in
    20070H0446B0494                 - 46 -     

     1     the notice.
     2         (3)  Upon approval of a charter cyber school application,
     3     a written charter shall be developed which shall contain the
     4     provisions of the charter application and be signed by the
     5     secretary and each member of the board of trustees of the
     6     charter cyber school. The charter, when duly signed, shall
     7     act as legal authorization of the establishment of a charter
     8     cyber school. The charter shall be legally binding on the
     9     department, the charter cyber school and its board of
    10     trustees. The charter shall be for a period of no less than
    11     three years nor more than five years and may be renewed for a
    12     period of five years by the department.
    13         (4)  The decision of the department to deny an
    14     application may be appealed to the appeal board.
    15     (h)  Funding.--Once approved a charter cyber school is
    16  eligible for funding by the department pursuant to section 2527.
    17     (i)  Denied application.--A charter cyber school applicant
    18  may revise and resubmit a denied application to the department.
    19  The department shall grant or deny the revised application
    20  within 60 days after its receipt.
    21     (j)  Appeal.--If the department fails to hold the required
    22  public hearing or to approve or disapprove the charter, the
    23  applicant may file its application as an appeal to the appeal
    24  board. The appeal board shall review the application and make a
    25  decision to approve or disapprove the charter based on the
    26  criteria in subsection (g).
    27  Section 1728-C.  Appeal board review.
    28     (a)  Jurisdiction.--The appeal board shall have the exclusive
    29  review of an appeal by a charter cyber school applicant or by
    30  the board of trustees of a charter cyber school on the decisions
    20070H0446B0494                 - 47 -     

     1  of the department, including:
     2         (1)  The denial of an application for a charter.
     3         (2)  The denial of a renewal of a charter.
     4         (3)  The revocation of a charter.
     5         (4)  An appeal under section 1727-C(j).
     6     (b)  Procedure.--The appeal board shall:
     7         (1)  Review the decision made by the department under
     8     subsection (a) on the record as certified by the department.
     9     The secretary shall recuse himself from all charter cyber
    10     school appeals and shall not participate in a hearing,
    11     deliberation or vote on a charter cyber school appeal. The
    12     appeal board may allow the department, the charter cyber
    13     school applicant or the board of trustees of a charter cyber
    14     school to supplement the record if the supplemental
    15     information was previously unavailable.
    16         (2)  Meet to officially review the certified record no
    17     later than 30 days after the date of filing the appeal.
    18         (3)  Issue a written decision affirming or denying the
    19     appeal no later than 60 days following its review.
    20         (4)  In the case of a decision by the department to deny
    21     a charter cyber application, make its decision based on
    22     section 1727-C(g)(1). A decision by the appeal board to
    23     reverse the decision of the department and grant a charter
    24     shall serve as a requirement for the secretary to sign the
    25     written charter of the charter cyber school.
    26         (5)  In the case of a decision by the department to
    27     revoke or deny renewal of charter of a charter cyber school
    28     in accordance with section 1721-C(a)(3), make its decision
    29     based on section 1717-C(a). A decision of the appeal board to
    30     reverse the decision of the department to not revoke or deny
    20070H0446B0494                 - 48 -     

     1     renewal of a charter shall serve as a requirement of the
     2     department to not revoke or to not deny renewal of the
     3     charter of the charter cyber school.
     4     (c)  Stay.--If the department appeals the decision of the
     5  appeal board, the appeal board's decision shall be stayed only
     6  upon order of the appeal board, the Commonwealth Court or the
     7  Pennsylvania Supreme Court.
     8     (d)  Review.--All decisions of the appeal board shall be
     9  subject to appellate review by the Commonwealth Court.
    10  Section 1729-C.  Charter cyber school application.
    11     In addition to the provisions of section 1726-C, an
    12  application to establish a charter cyber school shall also
    13  include the following:
    14         (1)  The curriculum to be offered and how it meets the
    15     requirements of 22 Pa. Code Ch. 4 (relating to academic
    16     standards and assessment) or subsequent regulations
    17     promulgated to replace 22 Pa. Code Ch. 4.
    18         (2)  The number of courses required for elementary and
    19     secondary students.
    20         (3)  An explanation of the amount of online time required
    21     for elementary and secondary students.
    22         (4)  The manner in which teachers will deliver
    23     instruction, assess academic progress and communicate with
    24     students to provide assistance.
    25         (5)  A specific explanation of any cooperative learning
    26     opportunities, meetings with students, parents and guardians,
    27     field trips or study sessions.
    28         (6)  The technology, including types of hardware and
    29     software, equipment and other materials which will be
    30     provided by the charter cyber school to the student.
    20070H0446B0494                 - 49 -     

     1         (7)  A description of how the charter cyber school will
     2     define and monitor a student's school day, including the
     3     delineation of online and off-line time.
     4         (8)  A description of commercially prepared standardized
     5     achievement tests that will be used by the charter cyber
     6     school in addition to the Pennsylvania System of School
     7     Assessment test, including the grade levels that will be
     8     tested and how the data collected from the tests will be used
     9     to improve instruction.
    10         (9)  The technical support that will be available to
    11     students and parents or guardians.
    12         (10)  The privacy and security measures to ensure the
    13     confidentiality of data gathered online.
    14         (11)  The level of anticipated enrollment during each
    15     school year of the proposed charter, including expected
    16     increases due to the addition of grade levels.
    17         (12)  The methods to be used to insure the authenticity
    18     of student work and adequate proctoring of examinations.
    19         (13)  The provision of education and related services to
    20     students with disabilities, including evaluation and the
    21     development and revision of individualized education
    22     programs.
    23         (14)  Policies regarding truancy, absences and withdrawal
    24     of students, including the manner in which the charter cyber
    25     school will monitor attendance consistent with the provisions
    26     of section 1724-C(9).
    27         (15)  The types and frequency of communication between
    28     the charter cyber school and the student and the manner in
    29     which the charter cyber school will communicate with parents
    30     and guardians.
    20070H0446B0494                 - 50 -     

     1         (16)  The addresses of all facilities and offices of the
     2     charter cyber school, the ownership thereof and any lease
     3     arrangements.
     4  Section 1730-C.  Enrollment.
     5     (a)  General rule.--All resident children in this
     6  Commonwealth qualify for admission to a charter cyber school
     7  within the provisions of subsection (b). If more students apply
     8  to the charter cyber school than the number of attendance slots
     9  available in the school, then students must be selected on a
    10  random basis from a pool of qualified applicants meeting the
    11  established eligibility criteria and submitting an application
    12  by the deadline established by the charter cyber school, except
    13  that the charter cyber school may give preference in enrollment
    14  to a child of a parent who has actively participated in the
    15  development of the charter cyber school and to siblings of
    16  students presently enrolled in the charter cyber school.
    17     (b)  Admission policy.--
    18         (1)  A charter cyber school shall not discriminate in its
    19     admission policies or practices on the basis of intellectual
    20     ability, except as provided in paragraph (2), or athletic
    21     ability, measures of achievement or aptitude, status as a
    22     person with a disability, proficiency in the English language
    23     or any other basis that would be illegal if used by a school
    24     district.
    25         (2)  A charter cyber school may limit admission to a
    26     particular grade level, a targeted population group composed
    27     of at-risk students, or areas of concentration of the school
    28     such as mathematics, science or the arts. A charter cyber
    29     school may establish reasonable criteria to evaluate
    30     prospective students which shall be outlined in the school's
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     1     charter.
     2     (c)  Nonresident students.--If available classroom space
     3  permits, a charter cyber school may enroll nonresident students
     4  on a space-available basis, and the student's district of
     5  residence shall permit the student to attend the charter school.
     6  The terms and conditions of the enrollment shall be outlined in
     7  the school's charter.
     8  Section 1731-C.  Enrollment and notification.
     9     (a)  Notice to school district.--
    10         (1)  Within 15 days of the enrollment of a student to a
    11     charter cyber school, the parent or guardian and the charter
    12     cyber school shall notify the student's school district of
    13     residence of the enrollment through the use of the
    14     notification form under subsection (b).
    15         (2)  If a school district which has received notice under
    16     paragraph (1) determines that a student is not a resident of
    17     the school district, the following apply:
    18             (i)  Within seven days of receipt of the notice under
    19         paragraph (1), the school district shall notify the
    20         charter cyber school and the department that the student
    21         is not a resident of the school district. Notification of
    22         nonresidence shall include the basis for the
    23         determination.
    24             (ii)  Within seven days of notification under
    25         subparagraph (i), the charter cyber school shall review
    26         the notification of nonresidence, respond to the school
    27         district and provide a copy of the response to the
    28         department.
    29             (iii)  Within seven days of receipt of the response
    30         under subparagraph (ii), the school district shall notify
    20070H0446B0494                 - 52 -     

     1         the charter cyber school that it agrees with the charter
     2         cyber school's determination or does not agree with the
     3         charter cyber school's determination.
     4             (iv)  A school district that has notified the charter
     5         cyber school that it does not agree with the charter
     6         cyber school's determination under subparagraph (iii)
     7         shall appeal to the department for a final determination.
     8             (v)  All decisions of the department regarding the
     9         school district of residence of a student shall be
    10         subject to review by the Commonwealth Court.
    11             (vi)  If a final determination is made that a student
    12         is not a resident of an appealing school district, the
    13         charter cyber school shall return all funds provided on
    14         behalf of that student to the department within 30 days.
    15     (b)  Notification form.--The department shall develop a
    16  notification form for use under subsection (a). The notification
    17  shall include:
    18         (1)  The name, home address and mailing address of the
    19     student.
    20         (2)  The grade in which the student is being enrolled.
    21         (3)  The date the student will be enrolled.
    22         (4)  The name and address of the charter cyber school and
    23     the name and telephone number of a contact person able to
    24     provide information regarding the charter cyber school.
    25         (5)  The signature of the parent or guardian and an
    26     authorized representative of the charter cyber school.
    27     (c)  Withdrawal.--The charter cyber school and the parent or
    28  guardian of a student enrolled in a charter cyber school shall
    29  provide written notification to the student's school district of
    30  residence within 15 days following the withdrawal of a student
    20070H0446B0494                 - 53 -     

     1  from the charter cyber school.
     2  Section 1732-C.  Equipment.
     3     All computers, software and Internet connections are the
     4  property of the charter cyber school, not the parents or the
     5  students, and the disposition of the property of the school is
     6  left to the school itself. If a student leaves the charter cyber
     7  school, the student must return the school's property to it in
     8  usable condition or pay a fine in the form of fair market value
     9  for it, enforceable in a court of law.
    10  Section 1733-C.  Extracurricular activities.
    11     (a)  Prohibitions.--Notwithstanding any provision to the
    12  contrary, no school district of residence shall prohibit a
    13  student of a charter cyber school from participating in any
    14  extracurricular activity of that school district of residence,
    15  provided, that the student is able to fulfill all of the
    16  requirements of participation in such activity and the charter
    17  school does not provide the same extracurricular activity.
    18     (b)  Written agreements.--The school districts and charter
    19  cyber schools shall enter into a written agreement that
    20  includes, but is not limited to, the following provisions:
    21         (1)  Eligibility criteria that apply to charter cyber
    22     school students for participation in the activity.
    23         (2)  Tryout criteria that apply to charter cyber school
    24     students for participation in the activity.
    25         (3)  The method by which charter cyber schools shall
    26     inform school districts that the charter cyber school's
    27     students meet the eligibility and tryout criteria and also
    28     comply with all policies, rules and regulations, or their
    29     equivalent, of the governing organization of the activity.
    30         (4)  Any transportation, safety or security issues that
    20070H0446B0494                 - 54 -     

     1     the parties desire to address.
     2     (c)  Physical examination or medical testing.--Where the
     3  activity requires completion of a physical examination or
     4  medical test as a condition of participation and the school
     5  district of residence offers such physical examination or
     6  medical test to students enrolled in the school district, the
     7  school district of residence shall permit a child who is
     8  enrolled in a charter cyber school to access such physical
     9  examination or medical test. The school district shall publish
    10  the dates and times of such physical examination or medical test
    11  on its publicly accessible Internet website.
    12  Section 1734-C.  Applicability of other provisions of this act
    13                     and of other acts and regulations.
    14     (a)  General requirements.--Charter cyber schools shall be
    15  subject to the following:
    16         (1)  Sections 108, 110, 111, 321, 325, 326, 327, 431,
    17     436, 443, 510, 518, 527, 708, 752, 753, 755, 771, 776, 777,
    18     808, 809, 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301,
    19     1302, 1310, 1317.2, 1318, 1330, 1332, 1303-A, 1518, 1521,
    20     1523, 1531, 1547, 1721-A, 1730-A, 1731-A(a)(1) and (b) and
    21     2014-A, Articles XIII-A and XIV and former Article XII-A.
    22         (2)  The act of July 17, 1961 (P.L.776, No.341), known as
    23     the Pennsylvania Fair Educational Opportunities Act.
    24         (3)  The act of July 19, 1965 (P.L.215, No.116), entitled
    25     "An act providing for the use of eye protective devices by
    26     persons engaged in hazardous activities or exposed to known
    27     dangers in schools, colleges and universities."
    28         (4)  Section 4 of the act of January 25, 1966 (1965
    29     P.L.1546, No.541), entitled "An act providing scholarships
    30     and providing funds to secure Federal funds for qualified
    20070H0446B0494                 - 55 -     

     1     students of the Commonwealth of Pennsylvania who need
     2     financial assistance to attend postsecondary institutions of
     3     higher learning, making an appropriation, and providing for
     4     the administration of this act."
     5         (5)  The act of July 12, 1972 (P.L.765, No.181), entitled
     6     "An act relating to drugs and alcohol and their abuse,
     7     providing for projects and programs and grants to educational
     8     agencies, other public or private agencies, institutions or
     9     organizations."
    10         (6)  The act of December 15, 1986 (P.L.1595, No.175),
    11     known as the Antihazing Law.
    12     (b)  Regulations.--Charter cyber schools shall be subject to
    13  the following provisions of 22 Pa. Code (relating to education):
    14         (1)  Chapter 4 (relating to academic standards and
    15     assessment).
    16         (2)  Chapter 11 (relating to student attendance).
    17         (3)  Chapter 12 (relating to students and student
    18     services).
    19         (4)  Section 32.3 (relating to assurances).
    20         (5)  Section 121.3 (relating to discrimination
    21     prohibited).
    22         (6)  Section 235.4 (relating to practices).
    23         (7)  Section 235.8 (relating to civil rights).
    24         (8)  Chapter 711 (relating to charter school services and
    25     programs for children with disabilities).
    26     (c)  Bidding requirements.--Charter cyber schools are subject
    27  to the same bidding requirements as school districts and other
    28  governmental entities in this Commonwealth.
    29     (d)  Existing charter schools.--
    30         (1)  The charter of a charter school approved under
    20070H0446B0494                 - 56 -     

     1     section 1717-A or 1718-A which provides instruction through
     2     the Internet or other electronic means shall remain in effect
     3     for the duration of the charter and shall be subject to the
     4     provisions of section 1741-C.
     5         (2)  In addition to subsections (a) and (b), the
     6     following provisions of this article shall apply to a charter
     7     school approved under section 1717-A or 1718-A which provides
     8     instruction through the Internet or other electronic means:
     9             (i)  Section 1723-C(c), (d), (e), (h) and (i).
    10             (ii)  Section 1725-C.
    11             (iii)  Section 1731-C.
    12                   (d)  Miscellaneous Provisions
    13  Section 1741-C.  Effect on certain existing charter schools.
    14     (a)  Determination.--For a charter school approved under
    15  section 1717-A or 1718-A which provides instruction through the
    16  Internet or other electronic means, the department shall
    17  determine:
    18         (1)  whether the charter school is in compliance with
    19     this article;
    20         (2)  whether the charter school has provided notification
    21     of the enrollment of each existing student to the school
    22     district of residence; and
    23         (3)  how the charter school plans to comply with section
    24     1723-C.
    25     (b)  Notification of compliance.--The department shall:
    26         (1)  Notify each charter school and the chartering school
    27     district of the department's determination under subsection
    28     (a). The notification shall include specific requirements
    29     with which the charter school has failed to comply.
    30         (2)  Publish a copy of the notification on the
    20070H0446B0494                 - 57 -     

     1     department's Internet website.
     2     (c)  Charter school requirement.--A charter school subject to
     3  the requirements of this section shall, either in writing or
     4  electronically, provide the parent or guardian of any student
     5  enrolled in the charter school a copy of the department's
     6  determination under subsection (b).
     7     (d)  School districts.--A school district shall not renew the
     8  charter of a charter school approved under section 1717-A or
     9  1718-A which provides instruction through the Internet or other
    10  electronic means or approve a charter for a charter cyber
    11  school.
    12     (e)  Renewal of charter for certain existing charter
    13  schools.--Upon the expiration of its charter, a charter school
    14  approved under section 1717-A or 1718-A which provides
    15  instruction through the Internet or other electronic means shall
    16  seek renewal of its charter from the department under this
    17  article. The charter shall be amended as needed to reflect the
    18  requirements of this article.
    19  Section 1742-C.  Regulations.
    20     The department may issue regulations to implement this
    21  article.
    22     Section 6.  The act is amended by adding sections to read:
    23     Section 2527.  Payments to Charter Cyber Schools.--(a)
    24  Notwithstanding any other provision of this article, each
    25  charter cyber school shall be paid by the Commonwealth on
    26  account of the instruction of pupils an amount as follows:
    27     (1)  For nonspecial education pupils:
    28     (i)  Five thousand dollars ($5,000) per pupil enrolled in a
    29  charter cyber school enrolling one thousand (1,000) or fewer
    30  pupils.
    20070H0446B0494                 - 58 -     

     1     (ii)  Four thousand dollars ($4,000) per pupil enrolled in a
     2  charter cyber school enrolling between one thousand one (1,001)
     3  pupils and four thousand nine hundred ninety-nine (4,999)
     4  pupils.
     5     (iii)  Three thousand dollars ($3,000) per pupil enrolled in
     6  a charter cyber school enrolling five thousand (5,000) pupils or
     7  more.
     8     (2)  For special education pupils, the amount shall be
     9  equivalent to the cost of a nonspecial education pupil as set
    10  forth in paragraph (1), plus the actual cost of providing
    11  special education services at the charter cyber school in
    12  accordance with the pupil's individualized education program.
    13     (3)  Enrollments shall be determined by the number of
    14  students enrolled in the charter cyber school as of May 31 of
    15  the previous school year or, in the case of a new charter cyber
    16  school, the enrollment as of the first day of the current school
    17  year.
    18     (b)  A student enrolled in a charter cyber school shall not
    19  be included in the average daily membership of the student's
    20  district of residence for the purpose of providing basic
    21  education funding payments and special education funding
    22  pursuant to this article.
    23     (c)  The department shall not be required to provide per
    24  pupil funding to charter cyber schools for any student who does
    25  not meet the minimum requirements for the age of beginners
    26  established by the board of school directors in the student's
    27  school district of residence.
    28     (d)  Payments to charter cyber schools shall be paid through
    29  a separate line item from the department's payments to school
    30  districts and shall not be deducted from a school district's
    20070H0446B0494                 - 59 -     

     1  basic education subsidy.
     2     Section 2528.  Requirements for Charter Cyber School
     3  Budgeting.--(a) The board of trustees of each charter cyber
     4  school shall, annually, at least thirty (30) days prior to the
     5  adoption of the annual budget, prepare a proposed budget of the
     6  amount of funds that will be required by the charter cyber
     7  school in its departments for the following fiscal year. Such
     8  proposed budget shall be prepared on a uniform form, prepared
     9  and furnished by the Department of Education. On the date of the
    10  adoption of the proposed budget, the board of trustees shall
    11  certify to the Department of Education that the proposed budget
    12  has been prepared, presented and will be made available for
    13  public inspection, upon request, using the uniform form prepared
    14  and furnished by the department as follows:
    15     (1)  Upon request, the proposed budget shall be made
    16  available for duplication to any person at least twenty (20)
    17  days prior to the date set for the adoption of the budget.
    18     (2)  Fees for duplication under this paragraph by
    19  photocopying, printing from electronic media, transmission by
    20  facsimile or other electronic means and other means for
    21  duplication must be reasonable and based on prevailing fees for
    22  comparable duplication services provided by local business
    23  entities.
    24     (b)  The board of trustees shall adopt a budget by the
    25  thirtieth day of June of each year. The budget shall include the
    26  State appropriation and any gifts or grants awarded to the
    27  charter cyber school. Within fifteen (15) days after the
    28  adoption of the budget, the board of trustees shall file a copy
    29  of the same with the Department of Education and with the
    30  Education Committee of the Senate and the Education Committee of
    20070H0446B0494                 - 60 -     

     1  the House of Representatives by the fifteenth day of September
     2  each year.
     3     (c)  The board of trustees may, during any fiscal year, make
     4  additional appropriations or increase existing appropriations to
     5  meet emergencies, such as epidemics, floods, fires or other
     6  catastrophes.
     7     (d)  The board of trustees shall have the power to authorize
     8  the transfer of any unencumbered balance, or any portion
     9  thereof, from one class of expenditure or item to another, but
    10  such action shall be taken only during the last nine (9) months
    11  of the fiscal year.
    12     Section 2529.  Limitations on Certain Unreserved Fund
    13  Balances.--(a)  For the school year 2007-2008, and each school
    14  year thereafter, no charter cyber school shall adopt a budget
    15  that includes an estimated ending unreserved, undesignated fund
    16  balance that is more than ten per centum (10%) of the charter
    17  cyber school's total budgeted expenditures. If a charter cyber
    18  school fails to comply with this section, the department shall
    19  deduct from the department's next payment to the charter cyber
    20  school the amount by which the estimated ending unreserved,
    21  undesignated fund balances exceed the ten per centum (10%)
    22  threshold of total budgeted expenditures.
    23     (b)  By August 15, 2007, and on the fifteenth day of August
    24  of each year thereafter, each charter cyber school shall provide
    25  the Department of Education with information certifying
    26  compliance with this section. Such information shall be provided
    27  in a form and manner prescribed by the Department of Education
    28  and shall include information on the charter cyber school's
    29  estimated unreserved, undesignated fund balance as a dollar
    30  amount and as a percentage of the charter cyber school's total
    20070H0446B0494                 - 61 -     

     1  budgeted expenditures for that school year.
     2     (c)  As used in this section, "estimated ending unreserved,
     3  undesignated fund balance" shall mean that portion of the fund
     4  balance which is appropriable for a specific or tentative future
     5  use, that is projected to remain in the general fund accounts of
     6  the charter cyber school at the close of the school year for
     7  which a charter cyber school's budget was adopted.
     8     Section 2530.  Auditing Requirements.--(a)  The finances of
     9  every charter cyber school in every department thereof, together
    10  with the account of all charter cyber school treasurers, school
    11  depositories, teachers' retirement funds, teachers' institute
    12  funds, directors' association funds, sinking funds and other
    13  funds belonging to or controlled by the charter cyber school,
    14  shall be properly audited by an independent auditor who shall be
    15  a certified public accountant who shall be named prior to the
    16  end of the fiscal year and shall have all the powers and duties
    17  of such other auditors provided for within this act, except that
    18  the audit shall be made in accordance with generally accepted
    19  auditing standards. The compensation of the independent auditor
    20  shall be fixed by the charter cyber school's board of trustees
    21  and shall be paid from the funds of the charter cyber school.
    22     (b)  In order that the aforesaid account may be thoroughly
    23  and properly audited, it shall be the duty of all charter cyber
    24  schools' boards of trustees and other proper persons to furnish
    25  to such auditors, whenever required by them for auditing
    26  purposes, statements and accounts of all finances of the charter
    27  cyber school and other funds belonging to or controlled by the
    28  charter cyber school, including assets and liabilities, together
    29  with access to all books, records, tax duplicates, vouchers,
    30  school orders, payrolls, letters and other matters pertaining to
    20070H0446B0494                 - 62 -     

     1  the same.
     2     (c)  The auditors, as provided in subsection (a), shall have
     3  the power and are hereby authorized to issue subpoenas to compel
     4  the attendance of charter cyber school officials or other
     5  persons whom they deem necessary to examine as witnesses and to
     6  compel the production of all books, records, vouchers, letters
     7  and papers relating to any accounts being audited by them. The
     8  auditors shall have the power to administer oaths or
     9  affirmations to all persons appearing before them as witnesses,
    10  and any person guilty of testifying falsely in any such
    11  examination shall be guilty of perjury and be liable for and
    12  subject to all the penalties provided therefor.
    13     (d)  In every charter cyber school, the proper auditors,
    14  pursuant to subsection (a), shall audit the finances of the
    15  charter cyber school by beginning their duties on the first day
    16  of July of each year, and promptly, within thirty (30) days,
    17  audit the accounts of the charter cyber school for which they
    18  were appointed. On the completion of the audit, the auditors
    19  shall make correct copies thereof, which shall contain an
    20  itemized statement of all receipts, expenditures and credits,
    21  whatsoever, of charter cyber school officials, and the assets
    22  and liabilities of the charter cyber school. One copy shall be
    23  filed with the board of trustees of the charter cyber school,
    24  one copy in the court of common pleas of the county in which the
    25  charter cyber school is located, one copy with the board of
    26  directors of the intermediate unit in which the charter cyber
    27  school is located, one copy with the school board of directors
    28  of the school district in which the charter cyber school is
    29  located, and one copy with the Department of Education. The copy
    30  shall be sent by registered mail with return receipt requested
    20070H0446B0494                 - 63 -     

     1  to the Secretary of Education.
     2     (e)  The charter cyber school, upon receipt of a copy of the
     3  audit, shall make the audit available for public inspection on
     4  the charter cyber school's publicly accessible Internet website.
     5     (f)  The Secretary of Education may investigate the financial
     6  records of any charter cyber school in person or by his
     7  authorized representative.
     8     (g)  Charter cyber schools shall also be subject to sections
     9  2451, 2452, 2453, 2454 and 2455.
    10     Section 7.  Section 2591.1(c.1) of the act, added July 4,
    11  2004 (P.L.536, No.70), is amended and the section is amended by
    12  adding a subsection to read:
    13     Section 2591.1.  Commonwealth Reimbursements for Charter
    14  Schools and Cyber Charter Schools.--* * *
    15     (c.1)  For the 2003-2004 school year [and each school year
    16  thereafter] through the 2006-2007 school year, the Commonwealth
    17  shall pay to each school district with resident students
    18  enrolled during the immediately preceding school year in a
    19  charter school, a charter school approved under section 1717-A
    20  or 1718-A which provides instruction through the Internet or
    21  other electronic means or a cyber charter school as defined
    22  under Article XVII-A, an amount equal to thirty percent (30%) of
    23  the total funding required under section 1725-A(a).
    24     (c.2)  For the 2007-2008 school year and each school year
    25  thereafter, the Commonwealth shall pay to each school district
    26  with resident students enrolled during the immediately preceding
    27  school year in a charter school, an amount equal to thirty
    28  percent (30%) of the total funding required under section 1725-
    29  A(a).
    30     * * *
    20070H0446B0494                 - 64 -     

     1     Section 8.  This act shall apply to the 2007-2008 school year
     2  and thereafter.
     3     Section 9.  This act shall take effect immediately.


















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