PRINTER'S NO. 3371
No. 2401 Session of 2002
INTRODUCED BY SCHULER, NAILOR, ROBINSON, HERMAN, RUBLEY,
PISTELLA, MUNDY, MARSICO, FLICK, FAIRCHILD, WATSON, SATHER,
SURRA, TIGUE, NICKOL, J. EVANS, CREIGHTON, ZUG, CURRY,
ZIMMERMAN, STURLA AND BOYES, MARCH 11, 2002
REFERRED TO COMMITTEE ON EDUCATION, MARCH 11, 2002
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," providing for a Statewide system of
6 licensing and oversight of cyber schools and for payments.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The act of March 10, 1949 (P.L.30, No.14), known
10 as the Public School Code of 1949, is amended by adding an
11 article to read:
12 ARTICLE XVII-C
13 CYBER SCHOOLS
14 Section 1701-C. Short title.
15 This article shall be known and may be cited as the
16 Pennsylvania Cyber School Act.
17 Section 1702-C. Legislative findings and purposes.
18 The General Assembly finds and declares as follows:
19 (1) Since the enactment of the Charter School Law,
1 charter school applicants have sought and received charters
2 to operate cyber charter schools wherein academic instruction
3 is delivered entirely or predominantly via the Internet or
4 other computer linkages to students situated in their own
5 homes.
6 (2) Because technology readily enables cyber charter
7 schools to serve students residing in all of the school
8 districts throughout this Commonwealth, many cyber charter
9 schools have operated with a charter from a single school
10 district without any significant interaction with the school
11 districts from which their students have been drawn.
12 (3) Pennsylvania's charter school law does not
13 contemplate the creation of cyber charter schools, and that
14 law does not provide an adequate framework for curriculum
15 evaluation, operations and finances of cyber charter schools
16 nor does it authorize cyber education as a legal method of
17 education.
18 (4) The General Assembly, in enacting this article,
19 intends to authorize cyber education through the creation of
20 a Statewide system of licensing and oversight by the
21 Department of Education and by allowing public school
22 entities to create their own cyber education programs.
23 (5) By this article the General Assembly intends to
24 increase the opportunities for parents and students to
25 participate in high quality cyber education programs while
26 ensuring fiscal accountability to the taxpayers of this
27 Commonwealth.
28 Section 1703-C. Definitions.
29 The following words and phrases when used in this article
30 shall have the meanings given to them in this section unless the
20020H2401B3371 - 2 -
1 context clearly indicates otherwise:
2 "Charter School Law." Article XVII-A.
3 "Compulsory attendance." The requirement for school-aged
4 children to attend a legally recognized school as contained in
5 section 1327.
6 "Correction service." The procedure for receiving and
7 correcting all tests and other student work in a timely manner,
8 providing appropriate comments and suggestions for correction of
9 errors and apparent weaknesses, promptly returning the corrected
10 tests and other student work to the student concerned and
11 recommending other assignments and areas of inquiry.
12 "Cyber education program." A program of instruction offered
13 by a cyber school or school entity for school-aged children
14 delivered entirely or predominantly via the Internet or other
15 computer linkages.
16 "Cyber education provider." A cyber school or school entity
17 that provides a cyber education program.
18 "Cyber school." A school that provides a cyber education
19 program.
20 "Department." The Department of Education of the
21 Commonwealth.
22 "PSSA." The Pennsylvania System of School Assessment.
23 "School-aged child." A child residing within this
24 Commonwealth eligible for free school privileges pursuant to
25 section 1301.
26 "School entity." A school district, vocational-technical
27 school, intermediate unit, charter school or independent school.
28 "Secretary." The Secretary of Education of the Commonwealth.
29 "State board." The State Board of Education.
30 Section 1704-C. License required.
20020H2401B3371 - 3 -
1 (a) General rule.--A cyber school shall not enroll school-
2 aged children within this Commonwealth unless the cyber school
3 has obtained from the secretary a license issued in the manner
4 and form prescribed by this article.
5 (b) Exception.--Notwithstanding subsection (a), no license
6 shall be required and the provisions of this article shall not
7 apply to the delivery of a cyber education program by a school
8 entity exclusively to resident school-aged children enrolled
9 within the school entity.
10 Section 1705-C. Application for license.
11 (a) General rule.--Before any license is issued to a cyber
12 school, a verified application shall be submitted to the
13 secretary in writing and on a form prepared and furnished by the
14 department.
15 (b) Name.--An application for a license shall be submitted
16 by and in the name of a nonsectarian corporation not-for-profit,
17 as defined in 15 Pa.C.S. § 102 (relating to definitions) or by
18 and in the name of a school entity.
19 (c) Contents.--The application for a license shall include
20 all of the following:
21 (1) The name, mailing address and telephone number of
22 the proposed cyber school.
23 (2) The name, mailing address and telephone number of
24 the contact person for the application.
25 (3) If the application is submitted by a nonsectarian
26 corporation not-for-profit, a copy of the filed articles of
27 incorporation for the proposed cyber school.
28 (4) If the application is submitted by a nonsectarian
29 corporation not-for-profit, the governance structure of the
30 proposed cyber school, including the bylaws.
20020H2401B3371 - 4 -
1 (5) The grade or age levels and total student enrollment
2 to be served by the proposed cyber school.
3 (6) The mission and educational goals of the proposed
4 cyber school; the curriculum to be offered; the equipment,
5 material, instructional staff, correction service and support
6 services that will be made available to students; and the
7 methods of assessing student achievement, including
8 participation in the PSSA as provided for in 22 Pa. Code Ch.
9 4 (relating to academic standards and assessment) or in any
10 successor to that chapter.
11 (7) The enrollment policy and criteria for evaluating
12 applications for enrollment in the proposed cyber school.
13 (8) The procedures that the proposed cyber school will
14 use to suspend or expel students and to notify the school
15 district in which a student resides that the student has been
16 suspended or expelled from the cyber school or is otherwise
17 no longer enrolled in the cyber school.
18 (9) The financial resources that will be utilized to
19 equip, maintain and operate the proposed cyber school, the
20 projected annual budget for the school and the provisions
21 that will be made for auditing the school under section 437.
22 (10) The procedures that will be established to review
23 complaints from parents regarding the operation of the
24 proposed cyber school.
25 (11) The place or places at which tests will be given
26 and face-to-face interaction between teachers and students
27 will occur.
28 (12) An explanation of how the proposed cyber school
29 will assure that each student receives a minimum of 180 days
30 of instruction per year, 900 hours of instruction at the
20020H2401B3371 - 5 -
1 elementary level per year, 990 hours of instruction at the
2 secondary level per year, or an explanation of how the
3 proposed cyber school will assure that each student receives
4 equivalent instruction sufficient to be deemed by the
5 secretary as in compliance with section 1327.
6 (13) The number and professional qualifications of the
7 employees of the proposed cyber school.
8 (14) Any agreements that have been entered into or plans
9 that have been developed with school districts regarding
10 participation of the proposed cyber school's students in
11 extracurricular activities.
12 (15) A report of the criminal history record, pursuant
13 to section 111, for all trustees, officers and employees of
14 the proposed cyber school.
15 (16) An official clearance statement regarding child
16 injury or abuse from the Department of Public Welfare as
17 required by 23 Pa.C.S. Ch. 63 Subch. C.2 (relating to
18 background checks for employment in schools) for all
19 trustees, officers and employees of the proposed cyber
20 school.
21 (17) An explanation of how the proposed cyber school
22 will provide adequate liability and other appropriate
23 insurance.
24 (18) Any additional information the secretary may deem
25 necessary in order to determine the adequacy of the program
26 of instruction and the financial integrity of the proposed
27 cyber school.
28 (d) Notice.--The department shall publish notice of the
29 license application in the Pennsylvania Bulletin and shall
30 provide for a period of at least 30 days for the submission of
20020H2401B3371 - 6 -
1 public comments on the license application.
2 (e) Public records.--The license application, any document
3 submitted in support of the license application, any public
4 comment on the license application and any document prepared by
5 the department with regard to the license application shall be a
6 public record for purposes of the act of June 21, 1957 (P.L.390,
7 No.212), referred to as the Right-to-Know Law.
8 (f) Hearing.--After completion of the public comment period
9 and a review of the license application, including any public
10 hearing the secretary deems necessary and any public comments,
11 the secretary shall issue a written decision approving or
12 disapproving the application. Notice shall be provided and such
13 hearing shall be conducted in accordance with 65 Pa.C.S. Ch. 7
14 (relating to open meetings).
15 (g) Approval.--The secretary shall not approve the license
16 application unless the secretary determines that the proposed
17 cyber school:
18 (1) Has submitted an application that fully complies
19 with subsections (a), (b) and (c).
20 (2) Is capable of providing an adequate program of
21 instruction that will increase learning opportunities.
22 (3) Will be accountable for meeting measurable academic
23 standards and for demonstrating gains in student achievement.
24 (4) Will be viable and accountable from a financial
25 standpoint.
26 Section 1706-C. Issuance of license.
27 (a) General rule.--Upon approval of a license application
28 pursuant to section 1705-C, the secretary shall issue a license
29 to the proposed cyber school for a term of no less than three
30 years and no more than five years. The license shall incorporate
20020H2401B3371 - 7 -
1 the license application with any revisions therein required by
2 the secretary and shall set forth any conditions imposed by the
3 secretary on the cyber school's operation.
4 (b) Amended license.--The cyber school shall not deviate
5 materially from the license issued pursuant to subsection (a)
6 unless the cyber school applies for and receives an amended
7 license. The procedure for obtaining an amended license shall be
8 the same as the procedure prescribed under section 1705-C for
9 obtaining a license.
10 Section 1707-C. Renewal of license.
11 (a) General rule.--A cyber school may apply for renewal of
12 its license for a term of five years.
13 (b) Application.--Not later than one year prior to the
14 expiration of the term of its current license, a cyber school
15 that seeks to renew that license shall submit a license renewal
16 application to the secretary that includes all of the following:
17 (1) All of the information required by section 1705-C(c)
18 for an initial application, as updated or otherwise revised.
19 (2) Such additional information as the secretary may
20 require in order to assess the performance of the cyber
21 school during the term of the expiring license.
22 (c) Notice.--The department shall publish notice of the
23 license renewal application in the Pennsylvania Bulletin and
24 shall provide for a period of at least 30 days for the
25 submission of public comments on the license renewal
26 application.
27 (d) Public record.--The license renewal application, any
28 document submitted in support of the license renewal
29 application, any public comment on the license renewal
30 application and any document prepared by the department with
20020H2401B3371 - 8 -
1 regard to the license renewal application shall be a public
2 record for purposes of the act of June 21, 1957 (P.L.390,
3 No.212), referred to as the Right-to-Know Law.
4 (e) Public hearing.--After completion of the public comment
5 period and a review of the license renewal application,
6 including any public hearing the secretary deems necessary and
7 any public comments, the secretary shall issue a written
8 decision approving or disapproving renewal of the license.
9 Notice shall be provided and such hearing shall be conducted in
10 accordance with 65 Pa.C.S. Ch. 7 (relating to open meetings).
11 (f) Approval.--The secretary shall not approve renewal of
12 the license unless the secretary determines that the cyber
13 school:
14 (1) has submitted a license renewal application that
15 fully complies with subsection (b);
16 (2) has provided and is capable of continuing to provide
17 an adequate program of instruction that will increase
18 learning opportunities;
19 (3) has been and will continue to be accountable for
20 meeting measurable academic standards and for demonstrating
21 gains in student achievement;
22 (4) has been and will continue to be viable and
23 accountable from a financial standpoint; and
24 (5) has operated and will continue to operate in
25 accordance with its license.
26 (g) Revisions and conditions.--If the secretary approves the
27 renewal of the license, the secretary may require revisions in
28 or impose conditions on the license previously issued pursuant
29 to section 1706-C or 1713-C.
30 Section 1708-C. Operation of cyber school.
20020H2401B3371 - 9 -
1 (a) Not-for-profit.--Except as provided in subsection (c), a
2 cyber school shall be organized and operated as a corporation
3 not-for-profit in accordance with 15 Pa.C.S. (relating to
4 corporations and unincorporated associations).
5 (b) Board of trustees.--Except as provided in subsection
6 (c), a cyber school shall be governed by a board of trustees
7 that shall have the powers and duties of the board of directors
8 of a corporation not-for-profit in accordance with 15 Pa.C.S.
9 All meetings of the board of trustees shall be held within this
10 Commonwealth and in accordance with 65 Pa.C.S. Ch. 7 (relating
11 to open meetings).
12 (c) Exceptions.--
13 (1) Subsections (a) and (b) shall not apply to a cyber
14 school if the cyber school's license application was
15 submitted by and in the name of a school entity.
16 (2) A cyber school to which subsections (a) and (b) do
17 not apply shall be organized and operated as part of a school
18 entity in the same manner as an additional school established
19 under section 502 is operated by a school district.
20 (d) Powers and duties.--A cyber school:
21 (1) May contract for management, administrative or
22 curriculum services to be provided by an entity that is a
23 corporation, partnership or limited liability company under
24 15 Pa.C.S. only if, after reviewing the negotiated contract,
25 the secretary determines that:
26 (i) the contractual relationship will be consistent
27 with the cyber school's license and with the fiduciary
28 obligation of the cyber school's board of trustees under
29 15 Pa.C.S. § 5712 (relating to standard of care and
30 justifiable reliance); and
20020H2401B3371 - 10 -
1 (ii) the cyber school's board of trustees will have
2 real and substantial authority and responsibility for the
3 educational decisions.
4 (2) Shall be nonsectarian in all operations and shall
5 not provide any religious instruction.
6 (3) May sue and be sued only to the same extent and upon
7 the same condition that political subdivisions and local
8 agencies may sue and be sued.
9 (4) Shall not unlawfully discriminate in any matter.
10 (5) Shall comply with 65 Pa.C.S. Ch. 7.
11 (6) Shall provide the department with ongoing access to
12 the cyber school's records and facilities.
13 (7) Shall submit an annual report to the department
14 sufficient to demonstrate that the cyber school is operating
15 in accordance with its license.
16 (8) May enroll students who reside anywhere within this
17 Commonwealth.
18 (9) May limit enrollment to a particular grade level or
19 levels or to a particular area or areas of concentration as
20 set forth in the license application.
21 (10) Except as provided in paragraph (9), shall not
22 discriminate in its enrollment policies or practices on the
23 basis of intellectual ability, measures of achievement or
24 aptitude, status as a person with a disability, proficiency
25 in the English language or any other basis that would be
26 unlawful if the cyber school were a school entity.
27 (11) Shall comply with Federal laws and regulations
28 governing children with disabilities.
29 (12) Shall comply with all provisions of 22 Pa. Code Ch.
30 4 (relating to academic standards and assessment) or any
20020H2401B3371 - 11 -
1 successor to 22 Pa. Code Ch. 4, that are applicable to a
2 charter school under the Charter School Law, provided that to
3 the extent an applicable provision of this article, or an
4 applicable regulation promulgated under this article,
5 conflicts with a provision of 22 Pa. Code Ch. 4, or any
6 successor to 22 Pa. Code Ch. 4, the cyber school shall comply
7 with the provision of this article or the regulation
8 promulgated under this article.
9 Section 1709-C. Standards for cyber education programs.
10 (a) Minimum standards.--No later than 12 months after the
11 effective date of this article, the State board shall promulgate
12 minimum standards regarding the curriculum content, operation
13 and supervision of cyber education programs offered by cyber
14 schools. The regulations shall contain provisions that ensure
15 the following:
16 (1) That all academic instruction is aligned with
17 regulations under 22 Pa. Code Ch. 4 (relating to academic
18 standards and assessment) and the PSSA.
19 (2) That appropriate course delivery systems and
20 technologies are used.
21 (3) That privacy and security measures to ensure that
22 data gathered online adheres to confidentiality requirements
23 under applicable Federal and State laws.
24 (4) That programs adequately address the issue of
25 accountability for student authenticity of work, including
26 homework, tests, essays and demonstration projects.
27 (5) That school-aged children participating in cyber
28 education are properly supervised by an adult.
29 (6) That all programs allow for appropriate amounts of
30 online time for elementary, middle and high school students.
20020H2401B3371 - 12 -
1 (7) That all programs specify the type and frequency of
2 communication between the cyber education provider and the
3 student to ensure academic integrity of the program.
4 (8) That programs provide for and deliver proper
5 services to students identified as special education or
6 gifted as required by Federal and State law.
7 (b) Interim guidelines.--The department shall promulgate
8 interim guidelines consistent with the requirements of this
9 section. Such guidelines shall be void upon the promulgation of
10 final regulations by the State board as required in subsection
11 (a).
12 Section 1710-C. Enrollment in cyber schools.
13 (a) General rule.--Notwithstanding the restrictions in
14 subsection (b), enrollment in a cyber school shall be open to
15 all school-aged children residing in this Commonwealth.
16 (b) Restriction on enrollment.--No school-aged child may
17 enroll in a cyber school during the period for which the child
18 has been suspended or expelled from a public school entity
19 unless authorized to do so by the student's school district of
20 residence.
21 (c) Verification of enrollment.--Before any student is
22 enrolled in a cyber school, the cyber school shall verify by
23 appropriate documentation to the school district of residence
24 that the student has actually enrolled in its cyber education
25 program. For purposes of this subsection, "appropriate
26 documentation" includes an affidavit signed by a student's
27 parent or guardian that enrollment in the school's cyber
28 education program has taken place. No student shall be enrolled
29 in a cyber school without the verification required by this
30 section.
20020H2401B3371 - 13 -
1 (d) Verification of residency.--Before any student is
2 enrolled in a cyber school, the cyber school shall verify by
3 appropriate documentation to the student's school district of
4 residence that the student is a resident. For purposes of this
5 subsection, "appropriate documentation" includes a deed, title
6 or other legal document establishing that the student's parent
7 or guardian is a resident of the district.
8 Section 1711-C. Payments on account of students enrolled in
9 cyber schools.
10 (a) Payments for tuition of students enrolled in cyber
11 schools.--
12 (1) The student's school district of residence shall be
13 responsible for a payment to a cyber school of $1,500 per
14 student.
15 (2) The school district of residence shall be
16 responsible for $750 per student on account of any resident
17 student in the student's first year of participation in a
18 cyber school who was not enrolled in the school district of
19 residence in the immediately preceding school year.
20 (3) The department shall pay for any and all additional
21 costs for cyber school students.
22 (b) Limitation on school district payments.--Notwithstanding
23 the provisions of subsection (a), no school district shall be
24 responsible for payments to cyber schools that exceed $1,500
25 times the product of .008 multiplied by a school district's
26 average daily membership for the 2001-2002 school year. School
27 districts of the first class and first class A shall not be
28 responsible for payments to cyber schools that exceed $1,500
29 times the product of .0015 multiplied by the school district's
30 2001-2002 average daily membership. The limitations established
20020H2401B3371 - 14 -
1 in this subsection shall take into account all students
2 participating in a cyber school, regardless of enrollment in the
3 immediately preceding school year.
4 (c) Notification of enrollments.--A school district of
5 residence shall not be liable for payment of the tuition of any
6 student enrolled in a cyber school unless notification is made
7 to the school district by March 31 of the immediately preceding
8 school year.
9 (d) Other payments.--The payment of tuition for students
10 enrolled in a cyber education program operated by a public
11 school entity shall be subject to negotiation between the school
12 district of residence and the cyber education provider.
13 Section 1712-C. Sharing of information.
14 (a) Cyber education program.--A school district that is
15 paying any portion of a student's tuition to a cyber education
16 provider shall have access to information on the cyber education
17 program being provided, including information on assessments and
18 financial records.
19 (b) Student progress records.--A school district that is
20 paying any portion of a student's tuition to a cyber education
21 provider shall have access to any records regarding a student's
22 progress, provided such access is not prohibited by applicable
23 Federal or State law.
24 (c) Changes in residence.--When a student who is enrolled in
25 a cyber school changes the student's district of residence, the
26 cyber school provider shall notify, within ten business days,
27 both the district from which the student moved and the district
28 into which the student is moving. The cyber school shall be
29 responsible for providing the required documentation verifying
30 enrollment and residency to the school district into which the
20020H2401B3371 - 15 -
1 student moves.
2 (d) Information not provided.--A school district shall not
3 be liable for the payment of tuition to a cyber education
4 provider for any student for whom the information required under
5 subsection (a), (b) or (c) is not provided within 30 days of the
6 receipt of a request. All requests for information shall be made
7 directly to the cyber education provider.
8 Section 1713-C. Transition.
9 (a) Surrender of charter.--Any cyber school that on the
10 effective date of this article has a charter to operate as a
11 charter school pursuant to the Charter School Law shall
12 surrender that charter at the end of the then-current school
13 year. In lieu of its surrendered charter, the cyber school shall
14 receive from the secretary a license under this article without
15 the necessity of submitting an application pursuant to section
16 1705-C. Before issuing a license under this subsection, the
17 secretary shall investigate any complaints that a cyber school
18 is not providing the services provided for in its charter and
19 take proper action to begin procedures for the revocation of the
20 school's license if a finding is made that the cyber school has
21 violated its charter.
22 (b) Term of license.--A license issued by the secretary in
23 accordance with this subsection, shall be valid for the
24 remainder of the term of the surrendered charter and may be
25 renewed in accordance with this article. During the term of any
26 license issued in accordance with this subsection, the cyber
27 school shall adhere to the conditions, standards or procedures
28 contained in the surrendered charter and to the provisions of
29 this article and to the regulations promulgated under this
30 article.
20020H2401B3371 - 16 -
1 (b) Prohibition.--Beginning on the effective date of this
2 article, no charter to operate as a charter school shall be
3 approved, granted, signed, renewed or otherwise issued for a
4 cyber school pursuant to the Charter School Law.
5 Section 2. This act shall take effect July 1, 2002, or
6 immediately, whichever is later.
C4L24BIL/20020H2401B3371 - 17 -