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        PRIOR PRINTER'S NO. 3371                      PRINTER'S NO. 4017

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

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, BOYES, B. SMITH, SHANER, THOMAS, SEMMEL,
           YOUNGBLOOD, HARHAI, STEELMAN, COY, MAHER AND R. STEVENSON,
           MARCH 11, 2002

        AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 12, 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.


     1     The General Assembly finds and declares as follows:
     2         (1)  Since the enactment of the Charter School Law,
     3     charter school applicants have sought and received charters
     4     to operate cyber charter schools wherein academic instruction
     5     is delivered entirely or predominantly via the Internet or
     6     other computer linkages to students situated in their own
     7     homes.
     8         (2)  Because technology readily enables cyber charter
     9     schools to serve students residing in all of the school
    10     districts throughout this Commonwealth, many cyber charter
    11     schools have operated with a charter from a single school
    12     district without any significant interaction with the school
    13     districts from which their students have been drawn.
    14         (3)  Pennsylvania's charter school law does not
    15     contemplate the creation of cyber charter schools, and that
    16     law does not provide an adequate framework for curriculum
    17     evaluation, operations and finances of cyber charter schools
    18     nor does it authorize cyber education as a legal method of
    19     education.
    20         (4)  The General Assembly, in enacting this article,
    21     intends to authorize cyber education through the creation of
    22     a Statewide system of licensing and oversight by the
    23     Department of Education and by allowing public school
    24     entities to create their own cyber education programs.
    25         (5)  By this article the General Assembly intends to
    26     increase the opportunities for parents and students to
    27     participate in high quality cyber education programs while
    28     ensuring fiscal accountability to the taxpayers of this
    29     Commonwealth.
    30  Section 1703-C.  Definitions.
    20020H2401B4017                  - 2 -

     1     The following words and phrases when used in this article
     2  shall have the meanings given to them in this section unless the
     3  context clearly indicates otherwise:
     4     "Charter School Law."  Article XVII-A.
     5     "Compulsory attendance."  The requirement for school-aged
     6  children to attend a legally recognized school as contained in
     7  section 1327.
     8     "Correction service."  The procedure for receiving and
     9  correcting all tests and other student work in a timely manner,
    10  providing appropriate comments and suggestions for correction of
    11  errors and apparent weaknesses, promptly returning the corrected
    12  tests and other student work to the student concerned and
    13  recommending other assignments and areas of inquiry.
    14     "Cyber education program."  A program of instruction offered
    15  by a cyber school or school entity for school-aged children
    16  delivered entirely or predominantly via the Internet or other
    17  computer linkages.
    18     "Cyber education provider."  A cyber school or school entity
    19  that provides a cyber education program.
    20     "Cyber school."  A school that provides a cyber education
    21  program.
    22     "Department."  The Department of Education of the
    23  Commonwealth.
    24     "PSSA."  The Pennsylvania System of School Assessment.
    25     "School-aged child."  A child residing within this
    26  Commonwealth eligible for free school privileges pursuant to
    27  section 1301.
    28     "School entity."  A school district, vocational-technical
    29  school, intermediate unit, charter school or independent school.  <--
    30  SCHOOL OR INTERMEDIATE UNIT.                                      <--
    20020H2401B4017                  - 3 -

     1     "Secretary."  The Secretary of Education of the Commonwealth.
     2     "State board."  The State Board of Education.
     3  Section 1704-C.  License required.
     4     (a)  General rule.--A cyber school shall not enroll school-
     5  aged children within this Commonwealth unless the cyber school
     6  has obtained from the secretary a license issued in the manner
     7  and form prescribed by this article.
     8     (b)  Exception.--Notwithstanding subsection (a), no license
     9  shall be required and the provisions of this article shall not
    10  apply to the delivery of a cyber education program by a school
    11  entity exclusively to resident school-aged children enrolled
    12  within the school entity.
    13  Section 1705-C.  Application for license.
    14     (a)  General rule.--Before any license is issued to a cyber
    15  school, a verified application shall be submitted to the
    16  secretary in writing and on a form prepared and furnished by the
    17  department.
    18     (b)  Name.--An application for a license shall be submitted
    19  by and in the name of a nonsectarian corporation not-for-profit,
    20  as defined in 15 Pa.C.S. § 102 (relating to definitions) or by
    21  and in the name of a school entity.
    22     (c)  Contents.--The application for a license shall include
    23  all of the following:
    24         (1)  The name, mailing address and telephone number of
    25     the proposed cyber school.
    26         (2)  The name, mailing address and telephone number of
    27     the contact person for the application.
    28         (3)  If the application is submitted by a nonsectarian
    29     corporation not-for-profit, a copy of the filed articles of
    30     incorporation for the proposed cyber school.
    20020H2401B4017                  - 4 -

     1         (4)  If the application is submitted by a nonsectarian
     2     corporation not-for-profit, the governance structure of the
     3     proposed cyber school, including the bylaws.
     4         (5)  The grade or age levels and total student enrollment
     5     to be served by the proposed cyber school.
     6         (6)  The mission and educational goals of the proposed
     7     cyber school; the curriculum to be offered; the equipment,
     8     material, instructional staff, correction service and support
     9     services that will be made available to students; and the
    10     methods of assessing student achievement, including
    11     participation in the PSSA as provided for in 22 Pa. Code Ch.
    12     4 (relating to academic standards and assessment) or in any
    13     successor to that chapter.
    14         (7)  The enrollment policy and criteria for evaluating
    15     applications for enrollment in the proposed cyber school.
    16         (8)  The procedures that the proposed cyber school will
    17     use to suspend or expel students and to notify the school
    18     district in which a student resides that the student has been
    19     suspended or expelled from the cyber school or is otherwise
    20     no longer enrolled in the cyber school.
    21         (9)  The financial resources that will be utilized to
    22     equip, maintain and operate the proposed cyber school, the
    23     projected annual budget for the school and the provisions
    24     that will be made for auditing the school under section 437.
    25         (10)  The procedures that will be established to review
    26     complaints from parents regarding the operation of the
    27     proposed cyber school.
    28         (11)  The place or places at which tests will be given
    29     and face-to-face interaction between teachers and students
    30     will occur.
    20020H2401B4017                  - 5 -

     1         (12)  An explanation of how the proposed cyber school
     2     will assure that each student receives a minimum of 180 days
     3     of instruction per year, 900 hours of instruction at the
     4     elementary level per year, 990 hours of instruction at the
     5     secondary level per year, or an explanation of how the
     6     proposed cyber school will assure that each student receives
     7     equivalent instruction sufficient to be deemed by the
     8     secretary as in compliance with section 1327.
     9         (13)  The number and professional qualifications of the
    10     employees of the proposed cyber school.
    11         (14)  Any agreements that have been entered into or plans
    12     that have been developed with school districts regarding
    13     participation of the proposed cyber school's students in
    14     extracurricular activities.
    15         (15)  A report of the criminal history record, pursuant
    16     to section 111, for all trustees, officers and employees of
    17     the proposed cyber school.
    18         (16)  An official clearance statement regarding child
    19     injury or abuse from the Department of Public Welfare as
    20     required by 23 Pa.C.S. Ch. 63 Subch. C.2 (relating to
    21     background checks for employment in schools) for all
    22     trustees, officers and employees of the proposed cyber
    23     school.
    24         (17)  An explanation of how the proposed cyber school
    25     will provide adequate liability and other appropriate
    26     insurance.
    27         (18)  Any additional information the secretary may deem
    28     necessary in order to determine the adequacy of the program
    29     of instruction and the financial integrity of the proposed
    30     cyber school.
    20020H2401B4017                  - 6 -

     1     (d)  Notice.--The department shall publish notice of the
     2  license application in the Pennsylvania Bulletin and shall
     3  provide for a period of at least 30 days for the submission of
     4  public comments on the license application.
     5     (e)  Public records.--The license application, any document
     6  submitted in support of the license application, any public
     7  comment on the license application and any document prepared by
     8  the department with regard to the license application shall be a
     9  public record for purposes of the act of June 21, 1957 (P.L.390,
    10  No.212), referred to as the Right-to-Know Law.
    11     (f)  Hearing.--After completion of the public comment period
    12  and a review of the license application, including any public
    13  hearing the secretary deems necessary and any public comments,
    14  the secretary shall issue a written decision approving or
    15  disapproving the application. Notice shall be provided and such
    16  hearing shall be conducted in accordance with 65 Pa.C.S. Ch. 7
    17  (relating to open meetings).
    18     (g)  Approval.--The secretary shall not approve the license
    19  application unless the secretary determines that the proposed
    20  cyber school:
    21         (1)  Has submitted an application that fully complies
    22     with subsections (a), (b) and (c).
    23         (2)  Is capable of providing an adequate program of
    24     instruction that will increase learning opportunities.
    25         (3)  Will be accountable for meeting measurable academic
    26     standards and for demonstrating gains in student achievement.
    27         (4)  Will be viable and accountable from a financial
    28     standpoint.
    29  Section 1706-C.  Issuance of license.
    30     (a)  General rule.--Upon approval of a license application
    20020H2401B4017                  - 7 -

     1  pursuant to section 1705-C, the secretary shall issue a license
     2  to the proposed cyber school for a term of no less than three
     3  years and no more than five years. The license shall incorporate
     4  the license application with any revisions therein required by
     5  the secretary and shall set forth any conditions imposed by the
     6  secretary on the cyber school's operation.
     7     (b)  Amended license.--The cyber school shall not deviate
     8  materially from the license issued pursuant to subsection (a)
     9  unless the cyber school applies for and receives an amended
    10  license. The procedure for obtaining an amended license shall be
    11  the same as the procedure prescribed under section 1705-C for
    12  obtaining a license.
    13  Section 1707-C.  Renewal of license.
    14     (a)  General rule.--A cyber school may apply for renewal of
    15  its license for a term of five years.
    16     (b)  Application.--Not later than one year prior to the
    17  expiration of the term of its current license, a cyber school
    18  that seeks to renew that license shall submit a license renewal
    19  application to the secretary that includes all of the following:
    20         (1)  All of the information required by section 1705-C(c)
    21     for an initial application, as updated or otherwise revised.
    22         (2)  Such additional information as the secretary may
    23     require in order to assess the performance of the cyber
    24     school during the term of the expiring license.
    25     (c)  Notice.--The department shall publish notice of the
    26  license renewal application in the Pennsylvania Bulletin and
    27  shall provide for a period of at least 30 days for the
    28  submission of public comments on the license renewal
    29  application.
    30     (d)  Public record.--The license renewal application, any
    20020H2401B4017                  - 8 -

     1  document submitted in support of the license renewal
     2  application, any public comment on the license renewal
     3  application and any document prepared by the department with
     4  regard to the license renewal application shall be a public
     5  record for purposes of the act of June 21, 1957 (P.L.390,
     6  No.212), referred to as the Right-to-Know Law.
     7     (e)  Public hearing.--After completion of the public comment
     8  period and a review of the license renewal application,
     9  including any public hearing the secretary deems necessary and
    10  any public comments, the secretary shall issue a written
    11  decision approving or disapproving renewal of the license.
    12  Notice shall be provided and such hearing shall be conducted in
    13  accordance with 65 Pa.C.S. Ch. 7 (relating to open meetings).
    14     (f)  Approval.--The secretary shall not approve renewal of
    15  the license unless the secretary determines that the cyber
    16  school:
    17         (1)  has submitted a license renewal application that
    18     fully complies with subsection (b);
    19         (2)  has provided and is capable of continuing to provide
    20     an adequate program of instruction that will increase
    21     learning opportunities;
    22         (3)  has been and will continue to be accountable for
    23     meeting measurable academic standards and for demonstrating
    24     gains in student achievement;
    25         (4)  has been and will continue to be viable and
    26     accountable from a financial standpoint; and
    27         (5)  has operated and will continue to operate in
    28     accordance with its license.
    29     (g)  Revisions and conditions.--If the secretary approves the
    30  renewal of the license, the secretary may require revisions in
    20020H2401B4017                  - 9 -

     1  or impose conditions on the license previously issued pursuant
     2  to section 1706-C or 1713-C.
     3  Section 1708-C.  Operation of cyber school.
     4     (a)  Not-for-profit.--Except as provided in subsection (c), a
     5  cyber school shall be organized and operated as a corporation
     6  not-for-profit in accordance with 15 Pa.C.S. (relating to
     7  corporations and unincorporated associations).
     8     (b)  Board of trustees.--Except as provided in subsection
     9  (c), a cyber school shall be governed by a board of trustees
    10  that shall have the powers and duties of the board of directors
    11  of a corporation not-for-profit in accordance with 15 Pa.C.S.
    12  All meetings of the board of trustees shall be held within this
    13  Commonwealth and in accordance with 65 Pa.C.S. Ch. 7 (relating
    14  to open meetings).
    15     (c)  Exceptions.--
    16         (1)  Subsections (a) and (b) shall not apply to a cyber
    17     school if the cyber school's license application was
    18     submitted by and in the name of a school entity.
    19         (2)  A cyber school to which subsections (a) and (b) do
    20     not apply shall be organized and operated as part of a school
    21     entity in the same manner as an additional school established
    22     under section 502 is operated by a school district.
    23         (3)  PARAGRAPH (1) SHALL NOT APPLY TO A CYBER SCHOOL       <--
    24     ORGANIZED AND OPERATED AS PART OF A SCHOOL ENTITY. A CYBER
    25     SCHOOL ORGANIZED AND OPERATED AS PART OF A SCHOOL ENTITY MAY
    26     CONTRACT FOR ANY SERVICE ONLY TO THE EXTENT AND IN THE MANNER
    27     THE SCHOOL ENTITY OF WHICH IT IS A PART MAY CONTRACT FOR THAT
    28     SERVICE.
    29         (4)  PARAGRAPHS (14), (15), (16) AND (17) SHALL NOT APPLY
    30     TO A CYBER SCHOOL ORGANIZED AND OPERATED AS A PART OF A
    20020H2401B4017                 - 10 -

     1     SCHOOL ENTITY. EMPLOYEES OF A CYBER SCHOOL ORGANIZED AND
     2     OPERATED AS PART OF A SCHOOL ENTITY:
     3             (I)  SHALL BE EMPLOYEES OF THE SCHOOL ENTITY.
     4             (II)  SHALL HAVE THE SAME RIGHTS UNDER THE ACT OF
     5         JULY 23, 1970 (P.L.563, NO.195), KNOWN AS THE PUBLIC
     6         EMPLOYE RELATIONS ACT, THIS ACT AND ANY OTHER PROVISION
     7         OF LAW AS OTHER EMPLOYEES OF THE SCHOOL ENTITY.
     8             (III)  SHALL BE COVERED BY THE APPROPRIATE COLLECTIVE
     9         BARGAINING AGREEMENT OR AGREEMENTS APPLICABLE TO OTHER
    10         EMPLOYEES OF THAT SCHOOL ENTITY.
    11     (d)  Powers and duties.--A cyber school:
    12         (1)  May contract for management, administrative or
    13     curriculum services to be provided by an entity that is a
    14     corporation, partnership or limited liability company under
    15     15 Pa.C.S. only if, after reviewing the negotiated contract,
    16     the secretary determines that:
    17             (i)  the contractual relationship will be consistent
    18         with the cyber school's license and with the fiduciary
    19         obligation of the cyber school's board of trustees under
    20         15 Pa.C.S. § 5712 (relating to standard of care and
    21         justifiable reliance); and
    22             (ii)  the cyber school's board of trustees will have
    23         real and substantial authority and responsibility for the
    24         educational decisions.
    25         (2)  Shall be nonsectarian in all operations and shall
    26     not provide any religious instruction.
    27         (3)  May sue and be sued only to the same extent and upon
    28     the same condition that political subdivisions and local
    29     agencies may sue and be sued.
    30         (4)  Shall not unlawfully discriminate in any matter.
    20020H2401B4017                 - 11 -

     1         (5)  Shall comply with 65 Pa.C.S. Ch. 7.
     2         (6)  Shall provide the department with ongoing access to
     3     the cyber school's records and facilities.
     4         (7)  Shall submit an annual report to the department
     5     sufficient to demonstrate that the cyber school is operating
     6     in accordance with its license.
     7         (8)  May enroll students who reside anywhere within this
     8     Commonwealth.
     9         (9)  May limit enrollment to a particular grade level or
    10     levels or to a particular area or areas of concentration as
    11     set forth in the license application.
    12         (10)  Except as provided in paragraph (9), shall not
    13     discriminate in its enrollment policies or practices on the
    14     basis of intellectual ability, measures of achievement or
    15     aptitude, status as a person with a disability, proficiency
    16     in the English language or any other basis that would be
    17     unlawful if the cyber school were a school entity.
    18         (11)  Shall comply with Federal laws and regulations
    19     governing children with disabilities.
    20         (12)  Shall comply with all provisions of 22 Pa. Code Ch.
    21     4 (relating to academic standards and assessment) or any
    22     successor to 22 Pa. Code Ch. 4, that are applicable to a
    23     charter school under the Charter School Law, provided that to
    24     the extent an applicable provision of this article, or an
    25     applicable regulation promulgated under this article,
    26     conflicts with a provision of 22 Pa. Code Ch. 4, or any
    27     successor to 22 Pa. Code Ch. 4, the cyber school shall comply
    28     with the provision of this article or the regulation
    29     promulgated under this article.
    30         (13)  SHALL SUBMIT AN ANNUAL REPORT TO THE DEPARTMENT      <--
    20020H2401B4017                 - 12 -

     1     SUFFICIENT TO DEMONSTRATE THAT THE CYBER SCHOOL IS OPERATING
     2     IN ACCORDANCE WITH ITS LICENSE.
     3         (14)  SHALL HIRE, ASSIGN, EVALUATE, DISCIPLINE AND
     4     DISCHARGE ALL EMPLOYEES OF THE CYBER SCHOOL AND SHALL
     5     DETERMINE THE LEVEL OF THEIR COMPENSATION AND THE TERMS AND
     6     CONDITIONS OF THEIR EMPLOYMENT, PROVIDED THAT EMPLOYEES SHALL
     7     HAVE THE RIGHT TO ORGANIZE AND BARGAIN COLLECTIVELY UNDER THE
     8     PROVISIONS OF THE PUBLIC EMPLOYE RELATIONS ACT AND ARTICLE
     9     XI-A.
    10         (15)  NOTWITHSTANDING PARAGRAPH (1), SHALL ASSURE THAT NO
    11     PERSON IS PERMITTED TO TEACH IN THE CYBER SCHOOL UNLESS THE
    12     PERSON:
    13             (I)  HAS THE APPROPRIATE STATE CERTIFICATION REQUIRED
    14         UNDER ARTICLE XII FOR A PERSON TO TEACH IN THE PUBLIC
    15         SCHOOLS OF THIS COMMONWEALTH.
    16             (II)  MEETS THE QUALIFICATIONS IN SECTIONS 1109 AND
    17         1209.
    18             (III)  IS AN EMPLOYEE OF THE CYBER SCHOOL.
    19         (16)  SHALL BE CONSIDERED A PUBLIC EMPLOYER FOR THE
    20     PURPOSES OF THE PUBLIC EMPLOYE RELATIONS ACT AND, UPON
    21     FORMATION OF ONE OR MORE COLLECTIVE BARGAINING UNITS, SHALL
    22     BARGAIN WITH ITS EMPLOYEES BASED ON THE PROVISIONS OF THAT
    23     ACT AND ARTICLE XI-A.
    24         (17)  SHALL ENROLL ALL EMPLOYEES IN THE PUBLIC SCHOOL
    25     EMPLOYEES' RETIREMENT SYSTEM IN THE MANNER SET FORTH IN 24
    26     PA.C.S. § 8301(A) (RELATING TO MANDATORY AND OPTIONAL
    27     MEMBERSHIP), PROVIDED, IF THE CYBER SCHOOL FAILS TO MAKE
    28     PAYMENTS TO THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM,
    29     THE SECRETARY SHALL MAKE THOSE PAYMENTS AND DEDUCT THE
    30     PAYMENTS FROM THE AMOUNT THE CYBER SCHOOL WOULD OTHERWISE
    20020H2401B4017                 - 13 -

     1     RECEIVE UNDER SECTION 1711-C.
     2  Section 1709-C.  Standards REGULATIONS for cyber education        <--
     3  programs.
     4     (a)  Minimum standards REGULATIONS.--No later than 12 months   <--
     5  after the effective date of this article, the State board shall
     6  promulgate minimum standards REGULATIONS regarding the            <--
     7  curriculum content, operation and supervision of cyber education
     8  programs offered by cyber schools. The regulations shall contain
     9  provisions that ensure the following:
    10         (1)  That all academic instruction is aligned with
    11     regulations under 22 Pa. Code Ch. 4 (relating to academic
    12     standards and assessment) and the PSSA.
    13         (2)  That appropriate course delivery systems and
    14     technologies are used.
    15         (3)  That privacy and security measures to ensure that
    16     data gathered online adheres to confidentiality requirements
    17     under applicable Federal and State laws.
    18         (4)  That programs adequately address the issue of
    19     accountability for student authenticity of work, including
    20     homework, tests, essays and demonstration projects.
    21         (5)  That school-aged children participating in cyber
    22     education are properly supervised by an adult.
    23         (6)  That all programs allow for appropriate amounts of
    24     online time for elementary, middle and high school students.
    25         (7)  That all programs specify the type and frequency of
    26     communication between the cyber education provider and the
    27     student to ensure academic integrity of the program.
    28         (8)  That programs provide for and deliver proper
    29     services to students identified as special education or
    30     gifted as required by Federal and State law.
    20020H2401B4017                 - 14 -

     1     (b)  Interim guidelines.--The department shall promulgate
     2  interim guidelines consistent with the requirements of this
     3  section. Such guidelines shall be void upon the promulgation of
     4  final regulations by the State board as required in subsection
     5  (a).
     6  Section 1710-C.  Enrollment in cyber schools.
     7     (a)  General rule.--Notwithstanding the restrictions in
     8  subsection (b), enrollment in a cyber school shall be open to
     9  all school-aged children residing in this Commonwealth.
    10     (b)  Restriction on enrollment.--No school-aged child may
    11  enroll in a cyber school during the period for which the child
    12  has been suspended or expelled from a public school entity
    13  unless authorized to do so by the student's school district of
    14  residence.
    15     (c)  Verification of enrollment.--Before any student is
    16  enrolled in a cyber school, the cyber school shall verify by
    17  appropriate documentation to the school district of residence
    18  that the student has actually enrolled in its cyber education
    19  program. For purposes of this subsection, "appropriate
    20  documentation" includes an affidavit signed by a student's
    21  parent or guardian that enrollment in the school's cyber
    22  education program has taken place. No student shall be enrolled
    23  in a cyber school without the verification required by this
    24  section.
    25     (d)  Verification of residency.--Before any student is
    26  enrolled in a cyber school, the cyber school shall verify by
    27  appropriate documentation to the student's school district of
    28  residence that the student is a resident. For purposes of this
    29  subsection, "appropriate documentation" includes a deed, title
    30  or other legal document establishing that the student's parent
    20020H2401B4017                 - 15 -

     1  or guardian is a resident of the district.
     2  Section 1711-C.  Payments on account of students enrolled in
     3                     cyber schools.
     4     (a)  Payments for tuition of students enrolled in cyber
     5  schools.--
     6         (1)  The student's school district of residence shall be
     7     responsible for a payment to a cyber school of $1,500 per
     8     student.
     9         (2)  The school district of residence shall be
    10     responsible for $750 per student on account of any resident
    11     student in the student's first year of participation in a
    12     cyber school who was not enrolled in the school district of
    13     residence in the immediately preceding school year.
    14         (3)  The department shall pay for any and all additional
    15     costs for cyber school students.
    16         (4)  A SCHOOL DISTRICT SHALL NOT BE REQUIRED TO PAY FOR A  <--
    17     RESIDENT STUDENT TO ATTEND A CYBER SCHOOL IF THE SCHOOL
    18     DISTRICT OPERATES ITS OWN FULL-TIME CYBER SCHOOL PROGRAM AT
    19     THE STUDENT'S GRADE OR ABILITY LEVEL UNLESS APPROVED BY THE
    20     BOARD OF SCHOOL DIRECTORS.
    21     (b)  Limitation on school district payments.--Notwithstanding
    22  the provisions of subsection (a), no school district shall be
    23  responsible for payments to cyber schools that exceed $1,500
    24  times the product of .008 multiplied by a school district's
    25  average daily membership for the 2001-2002 school year. School
    26  districts of the first class and first class A shall not be
    27  responsible for payments to cyber schools that exceed $1,500
    28  times the product of .0015 multiplied by the school district's
    29  2001-2002 average daily membership. The limitations established
    30  in this subsection shall take into account all students
    20020H2401B4017                 - 16 -

     1  participating in a cyber school, regardless of enrollment in the
     2  immediately preceding school year.
     3     (c)  Notification of enrollments.--A school district of
     4  residence shall not be liable for payment of the tuition of any
     5  student enrolled in a cyber school unless notification is made
     6  to the school district by March 31 of the immediately preceding
     7  school year.
     8     (d)  Other payments.--The payment of tuition for students
     9  enrolled in a cyber education program operated by a public
    10  school entity shall be subject to negotiation between the school
    11  district of residence and the cyber education provider.
    12  Section 1712-C.  Sharing of information.
    13     (a)  Cyber education program.--A school district that is
    14  paying any portion of a student's tuition to a cyber education
    15  provider shall have access to information on the cyber education
    16  program being provided, including information on assessments and
    17  financial records.
    18     (b)  Student progress records.--A school district that is
    19  paying any portion of a student's tuition to a cyber education
    20  provider shall have access to any records regarding a student's
    21  progress, provided such access is not prohibited by applicable
    22  Federal or State law.
    23     (c)  Changes in residence.--When a student who is enrolled in
    24  a cyber school changes the student's district of residence, the
    25  cyber school provider shall notify, within ten business days,
    26  both the district from which the student moved and the district
    27  into which the student is moving. The cyber school shall be
    28  responsible for providing the required documentation verifying
    29  enrollment and residency to the school district into which the
    30  student moves.
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     1     (d)  Information not provided.--A school district shall not
     2  be liable for the payment of tuition to a cyber education
     3  provider for any student for whom the information required under
     4  subsection (a), (b) or (c) is not provided within 30 days of the
     5  receipt of a request. All requests for information shall be made
     6  directly to the cyber education provider.
     7  SECTION 1713-C.  REVOCATION.                                      <--
     8     (A)  GENERAL RULE.--DURING THE TERM OF A LICENSE ISSUED OR
     9  RENEWED IN ACCORDANCE WITH THIS ACT, THE SECRETARY MAY REVOKE
    10  THE LICENSE IF, AFTER NOTICE AND PUBLIC HEARING IN ACCORDANCE
    11  WITH 65 PA.C.S. CH. 7 (RELATING TO OPEN MEETINGS) AND AFTER
    12  CONSIDERATION OF ANY PUBLIC COMMENTS, THE SECRETARY DETERMINES
    13  THAT:
    14         (1)  THE CYBER SCHOOL HAS FAILED TO OPERATE IN ACCORDANCE
    15     WITH ITS LICENSE OR ANY CONDITIONS IMPOSED ON THE LICENSE;
    16         (2)  THE CYBER SCHOOL HAS FAILED TO OPERATE IN ACCORDANCE
    17     WITH ANY CONDITIONS, STANDARDS OR PROCEDURES CONTAINED IN THE
    18     CHARTER IT SURRENDERED PURSUANT TO SECTION 1715-C;
    19         (3)  THE CYBER SCHOOL HAS FAILED TO MEET THE REQUIREMENTS
    20     FOR STUDENT PERFORMANCE SET FORTH IN 22 PA. CODE CH. 4
    21     (RELATING TO ACADEMIC STANDARDS AND ASSESSMENTS) OR ANY
    22     SUCCESSOR TO 22 PA. CODE CH. 4;
    23         (4)  THE CYBER SCHOOL HAS FAILED TO MEET GENERALLY
    24     ACCEPTED AUDITING REQUIREMENTS;
    25         (5)  THE CYBER SCHOOL HAS BEEN CONVICTED OF FRAUD;
    26         (6)  A TRUSTEE, OFFICER OR EMPLOYEE OF THE CYBER SCHOOL
    27     HAS BEEN CONVICTED OF FRAUD RELATING TO THE CYBER SCHOOL'S
    28     LICENSE APPLICATION OR THE CYBER SCHOOL'S OPERATION;
    29         (7)  THE CYBER SCHOOL HAS ENGAGED IN FALSE, DECEPTIVE OR
    30     MISLEADING REPRESENTATIONS IN RECRUITING OR ENROLLING
    20020H2401B4017                 - 18 -

     1     STUDENTS; OR
     2         (8)  THE CYBER SCHOOL HAS VIOLATED ANY PROVISIONS OF THIS
     3     ACT OR REGULATIONS PROMULGATED UNDER THIS ACT, ANY PROVISIONS
     4     OF ANY OTHER LAWS OR REGULATIONS OF THIS COMMONWEALTH OR ANY
     5     OTHER LAWS OR REGULATIONS OF THIS COMMONWEALTH OR ANY
     6     PROVISIONS OF ANY RELEVANT FEDERAL LAWS OR REGULATIONS.
     7     (B)  NOTICE.--THE DEPARTMENT SHALL PUBLISH NOTICE OF ANY
     8  HEARING PURSUANT TO SUBSECTION (A) IN THE PENNSYLVANIA BULLETIN
     9  AND SHALL PROVIDE FOR A PERIOD OF AT LEAST 30 DAYS FOR THE
    10  SUBMISSION OF PUBLIC COMMENTS ON WHETHER OR NOT THE CYBER
    11  SCHOOL'S LICENSE SHOULD BE REVOKED.
    12     (C)  PUBLIC RECORD.--ANY DOCUMENT SUBMITTED REGARDING THE
    13  REVOCATION OF A CYBER SCHOOL'S LICENSE, ANY PUBLIC COMMENT ON
    14  WHETHER OR NOT SUCH LICENSE SHOULD BE REVOKED AND ANY DOCUMENT
    15  PREPARED BY THE DEPARTMENT WITH REGARD TO THE REVOCATION OR
    16  POSSIBLE REVOCATION OF SUCH LICENSE SHALL BE A PUBLIC RECORD FOR
    17  PURPOSES OF THE ACT OF JUNE 21, 1957 (P.L.390, NO.212), REFERRED
    18  TO AS THE RIGHT-TO-KNOW LAW.
    19  SECTION 1714-C.  ADJUDICATION.
    20     ANY DECISION BY THE SECRETARY TO APPROVE OR DISAPPROVE A
    21  CYBER SCHOOL LICENSE APPLICATION, TO APPROVE OR DISAPPROVE THE
    22  RENEWAL OF SUCH LICENSE OR TO REVOKE OR REFUSE TO REVOKE SUCH
    23  LICENSE SHALL BE AN ADJUDICATION UNDER 2 PA.C.S. (RELATING TO
    24  ADMINISTRATIVE LAW AND PROCEDURE). ANY PERSON AGGRIEVED BY SUCH
    25  ADJUDICATION MAY APPEAL THAT ADJUDICATION IN ACCORDANCE WITH 2
    26  PA.C.S.
    27  Section 1713-C 1715-C.  Transition.                               <--
    28     (a)  Surrender of charter.--Any cyber school that on the
    29  effective date of this article has a charter to operate as a
    30  charter school pursuant to the Charter School Law shall
    20020H2401B4017                 - 19 -

     1  surrender that charter at the end of the then-current school
     2  year. In lieu of its surrendered charter, the cyber school shall
     3  receive from the secretary a license under this article without
     4  the necessity of submitting an application pursuant to section
     5  1705-C. Before issuing a license under this subsection, the
     6  secretary shall investigate any complaints that a cyber school
     7  is not providing the services provided for in its charter and
     8  take proper action to begin procedures for the revocation of the
     9  school's license if a finding is made that the cyber school has
    10  violated its charter.
    11     (b)  Term of license.--A license issued by the secretary in
    12  accordance with this subsection, shall be valid for the
    13  remainder of the term of the surrendered charter and may be
    14  renewed in accordance with this article. During the term of any
    15  license issued in accordance with this subsection, the cyber
    16  school shall adhere to the conditions, standards or procedures
    17  contained in the surrendered charter and to the provisions of
    18  this article and to the regulations promulgated under this
    19  article.
    20     (b) (C)  Prohibition.--Beginning on the effective date of      <--
    21  this article, no charter to operate as a charter school shall be
    22  approved, granted, signed, renewed or otherwise issued for a
    23  cyber school pursuant to the Charter School Law.
    24     Section 2.  This act shall take effect July 1, 2002, or
    25  immediately, whichever is later.




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