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        PRIOR PRINTER'S NOS. 75, 972                  PRINTER'S NO. 1341

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 80 Session of 2003


        INTRODUCED BY MOWERY, GREENLEAF, WOZNIAK, THOMPSON, CORMAN,
           KITCHEN, SCHWARTZ, WAUGH, EARLL, M. WHITE, C. WILLIAMS,
           RHOADES, D. WHITE, KASUNIC AND ORIE, JANUARY 27, 2003

        SENATE AMENDMENTS TO HOUSE AMENDMENTS, DECEMBER 19, 2003

                                     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," further providing for residence and
     6     right to free school privileges; adding definitions;
     7     providing for State System of Higher Education campus police
     8     powers and duties; and making a repeal.
     9  AMENDING THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), ENTITLED "AN  <--
    10     ACT RELATING TO THE PUBLIC SCHOOL SYSTEM, INCLUDING CERTAIN
    11     PROVISIONS APPLICABLE AS WELL TO PRIVATE AND PAROCHIAL
    12     SCHOOLS; AMENDING, REVISING, CONSOLIDATING AND CHANGING THE
    13     LAWS RELATING THERETO," ADDING DEFINITIONS; FURTHER PROVIDING
    14     FOR BACKGROUND CHECKS OF PROSPECTIVE EMPLOYEES AND CONVICTION
    15     OF EMPLOYEES OF CERTAIN OFFENSES, FOR FISCAL YEAR, FOR TAX
    16     LEVY AND LIMITATIONS, AND FOR PER CAPITA TAXES; AUTHORIZING
    17     SCHOOL DISTRICTS TO REOPEN THEIR 2003-2004 BUDGETS; IMPOSING
    18     LIMITATIONS ON CERTAIN UNRESERVED FUND BALANCES; REPEALING
    19     PROVISIONS RELATING TO PROFESSIONAL TEACHER ASSESSMENT;
    20     FURTHER PROVIDING FOR RESIDENCE AND RIGHT TO FREE SCHOOL
    21     PRIVILEGES, FOR COST OF TUITION AND MAINTENANCE OF CERTAIN
    22     EXCEPTIONAL CHILDREN IN APPROVED INSTITUTIONS AND FOR ACTUAL
    23     COST OF TUITION AND MAINTENANCE OF CERTAIN EXCEPTIONAL
    24     CHILDREN IN THE FOUR CHARTERED SCHOOLS FOR EDUCATION OF THE
    25     DEAF AND THE BLIND; PROVIDING FOR FIREFIGHTER AND EMERGENCY
    26     SERVICE TRAINING; AMENDING PROVISIONS RELATING TO THE
    27     EDUCATION SUPPORT SERVICES PROGRAM; PROVIDING FOR THE
    28     EDUCATIONAL ASSISTANCE PROGRAM AND THE HEAD START
    29     SUPPLEMENTAL ASSISTANCE PROGRAM; DEFINING "HISTORY OF
    30     FINANCIAL DISTRESS"; FURTHER PROVIDING FOR EDUCATION
    31     EMPOWERMENT LIST, FOR IMPLEMENTATION OF SCHOOL DISTRICT
    32     IMPROVEMENT PLAN BY BOARD OF SCHOOL DIRECTORS, FOR EDUCATION
    33     EMPOWERMENT DISTRICTS, FOR SCHOOL IMPROVEMENT GRANTS, FOR


     1     MANDATE WAIVER PROGRAM AND FOR DEFINITIONS; PROVIDING FOR
     2     STATE SYSTEM OF HIGHER EDUCATION CAMPUS POLICE POWERS AND
     3     DUTIES; IMPOSING CERTAIN LIMITATIONS ON PROVISIONS RELATING
     4     TO EDUCATION EMPOWERMENT; AMENDING PROVISIONS RELATING TO
     5     EDUCATIONAL IMPROVEMENT TAX CREDIT; FURTHER PROVIDING FOR
     6     SMALL DISTRICT ASSISTANCE AND FOR TEMPORARY SPECIAL AID TO
     7     SCHOOL DISTRICTS SUFFERING LOSS OF TAX REVENUE DUE TO
     8     REDUCTION IN ASSESSED VALUATION OF TAXABLE PROPERTY;
     9     PROVIDING FOR BASIC EDUCATION FUNDING FOR 2002-2003 SCHOOL
    10     YEAR AND FOR REIMBURSEMENT OF ADDITIONAL EXPENSES RELATED TO
    11     BASIC EDUCATION; FURTHER PROVIDING FOR PAYMENTS TO
    12     INTERMEDIATE UNITS, FOR SPECIAL EDUCATION PAYMENTS TO SCHOOL
    13     DISTRICTS, FOR EXTRAORDINARY SPECIAL EDUCATION PROGRAM
    14     EXPENSES AND FOR COMMONWEALTH REIMBURSEMENTS FOR CHARTER
    15     SCHOOLS AND CYBER CHARTER SCHOOLS; PROVIDING FOR PENNSYLVANIA
    16     ACCOUNTABILITY GRANTS AND KEYSTONE EDUCATIONAL
    17     ACCOUNTABILITY; FURTHER PROVIDING FOR POWERS AND DUTIES OF
    18     THE STATE BOARD OF EDUCATION; PROVIDING FOR TEACHER
    19     RECRUITMENT ASSISTANCE; AND MAKING A RELATED REPEAL.

    20     The General Assembly of the Commonwealth of Pennsylvania
    21  hereby enacts as follows:
    22     Section 1.  Section 1302 of the act of March 10, 1949          <--
    23  (P.L.30, No.14), known as the Public School Code of 1949,
    24  amended June 22, 2001 (P.L.530, No.35), is amended to read:
    25     Section 1302.  Residence and Right to Free School
    26  Privileges.--(a)  A child shall be considered a resident of the
    27  school district in which his parents or the guardian of his
    28  person resides. Federal installations are considered a part of
    29  the school district or districts in which they are situate and
    30  the children residing on such installations shall be counted as
    31  resident pupils of the school district. When a resident of any
    32  school district keeps in his home a child of school age, not his
    33  own, supporting the child gratis as if it were his own, such
    34  child shall be entitled to all free school privileges accorded
    35  to resident school children of the district, including the right
    36  to attend the public high school maintained in such district or
    37  in other districts in the same manner as though such child were
    38  in fact a resident school child of the district, and shall be
    39  subject to all the requirements placed upon resident school
    20030S0080B1341                  - 2 -     

     1  children of the district. Before such child may be accepted as a
     2  pupil, such resident shall file with the secretary of the board:
     3     (1)  appropriate legal documentation to show dependency or
     4  guardianship; or
     5     (2)  a sworn statement that he is a resident of the district,
     6  that he is supporting the child gratis, that he will assume all
     7  personal obligations for the child relative to school
     8  requirements, and that he intends to so keep and support the
     9  child continuously and not merely through the school term. The
    10  school board, pursuant to guidelines issued by the Department of
    11  Education, may require other reasonable information to be
    12  submitted by the resident to substantiate the sworn statement.
    13  The form containing the sworn statement shall include notice in
    14  large print of the penalty for providing false information in
    15  the sworn statement.
    16     (b)  If it is found that information contained in the sworn
    17  statement is false, the child must be removed from the school
    18  after notice of an opportunity to appeal the removal pursuant to
    19  the appropriate grievance policy of the school district.
    20     (c)  A person who knowingly provides false information in the
    21  sworn statement for the purpose of enrolling a child in a school
    22  district for which the child is not eligible commits a
    23  misdemeanor of the third degree and shall, upon conviction,
    24  notwithstanding any other provision of law, be sentenced to pay
    25  a fine of no more than three hundred dollars ($300) for the
    26  benefit of the school district in which the person resides and
    27  court costs, and in default of payment thereof, may be sentenced
    28  to a term of imprisonment for not more than thirty (30) days. In
    29  addition, the person shall be liable to the school district for
    30  an amount equal to the cost to the district of educating the
    20030S0080B1341                  - 3 -     

     1  child during the period of enrollment.
     2     Section 2.  Section 2001-A of the act is amended by adding
     3  clauses to read:
     4     Section 2001-A.  Definitions.--The following words and
     5  phrases when used in this article shall, for the purpose of this
     6  article, have the following meanings, respectively, except in
     7  those instances where the context clearly indicates a different
     8  meaning:
     9     * * *
    10     (20)  "Campus police" shall mean all law enforcement
    11  personnel employed by the system who have successfully completed
    12  a campus police course of training approved under 53 Pa.C.S. Ch.
    13  21 Subch. D (relating to municipal police education and
    14  training).
    15     (21)  "Grounds" shall mean all lands and buildings owned,
    16  controlled, leased or managed by the system.
    17     Section 3.  The act is amended by adding a section to read:
    18     Section 2019-A.  Campus Police Powers and Duties.--(a)
    19  Campus police of an institution shall have the power and their
    20  duty shall be:
    21     (1)  to enforce good order on the grounds and in the
    22  buildings of the institution;
    23     (2)  to protect the grounds and buildings of the institution;
    24     (3)  to exclude all disorderly persons from the grounds and
    25  buildings of the institution;
    26     (4)  to adopt means necessary for the performance of their
    27  duties;
    28     (5)  to exercise the same powers as are now or may hereafter
    29  be exercised under authority of law or ordinance by the police
    30  of the municipalities wherein the institution is located,
    20030S0080B1341                  - 4 -     

     1  including, but not limited to, those powers conferred pursuant
     2  to 42 Pa.C.S. Ch. 89 Subch. D (relating to municipal police
     3  jurisdiction);
     4     (6)  to prevent crime, investigate criminal acts, apprehend,
     5  arrest and charge criminal offenders and issue summary citations
     6  for acts committed on the grounds of the institution and carry
     7  the criminal offenders before the proper district justice and
     8  prefer charges against them under the laws of this Commonwealth.
     9  Except when acting pursuant to 42 Pa.C.S. Ch. 89 Subch. D,
    10  campus police shall exercise these powers and perform these
    11  duties only on the grounds of the institution. For the purposes
    12  of applying the provisions of 42 Pa.C.S. Ch. 89 Subch. D, the
    13  grounds of the institution shall constitute the primary
    14  jurisdiction of the campus police.
    15     (7)  to order off the grounds and out of the buildings of the
    16  institution all trespassers and persons under the influence of
    17  alcohol or controlled substances and, if necessary, remove them
    18  by force and, in case of resistance, carry them before a
    19  district justice; and
    20     (8)  to arrest any person who damages, mutilates or destroys
    21  the property of the institution or commits any other offense,
    22  including threats or acts of terrorism, on the grounds and in
    23  the buildings of the institution and carry that person before
    24  the proper district justice and prefer charges against that
    25  person under the laws of this Commonwealth.
    26     (b)  An institution is authorized to enter into an agreement
    27  with the municipalities overlain by or abutting its campus to
    28  exercise concurrently those powers and to perform those duties
    29  conferred pursuant to a cooperative police service agreement in
    30  accordance with 42 Pa.C.S. § 8953 (relating to Statewide
    20030S0080B1341                  - 5 -     

     1  municipal police jurisdiction). When so acting, the campus
     2  police of the institution shall have the same powers, immunities
     3  and benefits granted to police officers in 42 Pa.C.S. Ch. 89
     4  Subch. D. All such agreements shall be consistent with the
     5  mission and purpose of the system.
     6     (c)  When acting within the scope of the authority of this
     7  section, campus police are at all times employes of the
     8  institution and shall be entitled to all of the rights accruing
     9  therefrom.
    10     Section 4.  Section 2416 of the act of April 9, 1929
    11  (P.L.177, No.175), known as The Administrative Code of 1929, is
    12  repealed insofar as it is inconsistent with this act.
    13     Section 5.  This act shall take effect in 30 days.
    14     SECTION 1.  SECTION 102 OF THE ACT OF MARCH 10, 1949 (P.L.30,  <--
    15  NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, AMENDED JANUARY
    16  14, 1970 (1969 P.L.468, NO.192), MAY 11, 1982 (P.L.396, NO.115),
    17  DECEMBER 21, 1998 (P.L.1194, NO.154) AND JUNE 29, 2002 (P.L.524,
    18  NO.88), IS AMENDED TO READ:
    19     SECTION 102.  DEFINITIONS.--WHEN USED IN THIS ACT THE
    20  FOLLOWING WORDS AND PHRASES SHALL HAVE THE FOLLOWING MEANINGS:
    21     [(1)  "BOARD OF SCHOOL DIRECTORS" SHALL INCLUDE THE BOARD OF
    22  PUBLIC EDUCATION IN SCHOOL DISTRICTS OF THE FIRST CLASS, EXCEPT
    23  WHERE SPECIFICALLY LIMITED TO SCHOOL DISTRICTS OF OTHER CLASSES.
    24     (2)  "SCHOOL DISTRICT" SHALL INCLUDE SCHOOL DISTRICTS OF ALL
    25  CLASSES, EXCEPT WHERE SPECIFICALLY LIMITED TO DISTRICTS OF A
    26  PARTICULAR CLASS OR CLASSES.
    27     (3)  "SCHOOL TERM" SHALL MEAN THE PERIOD OF TIME ELAPSING
    28  BETWEEN THE OPENING OF THE PUBLIC SCHOOLS IN THE FALL OF ONE
    29  YEAR AND THE CLOSING OF THE PUBLIC SCHOOLS IN THE SPRING OF THE
    30  FOLLOWING YEAR.
    20030S0080B1341                  - 6 -     

     1     (4)  "SCHOOL YEAR" SHALL MEAN THE PERIOD OF TIME ELAPSING IN
     2  SCHOOL DISTRICTS OF THE FIRST CLASS BETWEEN THE FIRST DAY OF
     3  JANUARY AND THE THIRTY-FIRST DAY OF DECEMBER OF ANY YEAR, AND IN
     4  SCHOOL DISTRICTS OF ALL OTHER CLASSES BETWEEN THE FIRST DAY OF
     5  JULY OF ONE YEAR AND THE THIRTIETH DAY OF JUNE OF THE FOLLOWING
     6  YEAR. EFFECTIVE JULY 1, 1997, FOR THE 1997-1998 SCHOOL YEAR AND
     7  EACH SCHOOL YEAR THEREAFTER, SCHOOL DISTRICTS WITH A YEAR-ROUND
     8  EDUCATION PROGRAM MAY SUBMIT A REQUEST TO THE SECRETARY OF
     9  EDUCATION FOR APPROVAL OR DISAPPROVAL TO EXTEND THE SCHOOL YEAR
    10  UNTIL AUGUST 15 FOR THE PURPOSE OF DETERMINING AVERAGE DAILY
    11  MEMBERSHIPS FOR STUDENTS WHOSE ONE HUNDRED EIGHTY (180) DAYS OF
    12  INSTRUCTION CONTINUE INTO THE SUMMER MONTHS.
    13     (5)  "OFFICIAL VISITOR" SHALL INCLUDE THE GOVERNOR,
    14  LIEUTENANT GOVERNOR, MEMBERS OF THE SENATE AND THE HOUSE OF
    15  REPRESENTATIVES, THE SECRETARY OF EDUCATION AND MEMBERS OF THE
    16  STATE BOARD OF EDUCATION.
    17     (6)  "PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TEST" OR "PSSA
    18  TEST" SHALL MEAN A TEST DEVELOPED AND IMPLEMENTED BY THE
    19  DEPARTMENT OF EDUCATION TO DETERMINE ONLY ACADEMIC ACHIEVEMENT
    20  RELATING TO OBJECTIVE ACADEMIC STANDARDS IN THE AREAS OF
    21  READING, WRITING, MATHEMATICS AND SCIENCE. THE PSSA TEST SHALL
    22  BE DEVELOPED AND IMPLEMENTED AS NECESSARY TO COMPLY WITH FEDERAL
    23  LAW.]
    24     "ACADEMIC PERFORMANCE TARGET."  A PERCENTAGE OF STUDENTS IN A
    25  SCHOOL OR SCHOOL DISTRICT REQUIRED TO SCORE AT A LEVEL EQUAL TO
    26  OR ABOVE PROFICIENT IN THOSE SUBJECT AREAS ASSESSED THROUGH A
    27  PSSA TEST AND REQUIRED UNDER THE NO CHILD LEFT BEHIND ACT OF
    28  2001 (PUBLIC LAW 107-110, 115 STAT. 1425) IN ORDER TO ACHIEVE
    29  ADEQUATE YEARLY PROGRESS PURSUANT TO 22 PA. CODE § 403.3
    30  (RELATING TO SINGLE ACCOUNTABILITY SYSTEM).
    20030S0080B1341                  - 7 -     

     1     "ADEQUATE YEARLY PROGRESS" OR "AYP."  ADEQUATE YEARLY
     2  PROGRESS AS DEFINED BY SECTION 1111(B)(2)(C) OF THE NO CHILD
     3  LEFT BEHIND ACT OF 2001 (PUBLIC LAW 107-110, 115 STAT. 1425) AND
     4  IN 22 PA. CODE §§ 403.2 (RELATING TO DEFINITIONS) AND 403.3
     5  (RELATING TO SINGLE ACCOUNTABILITY SYSTEM).
     6     "BOARD OF SCHOOL DIRECTORS."  INCLUDES THE BOARD OF PUBLIC
     7  EDUCATION IN SCHOOL DISTRICTS OF THE FIRST CLASS, EXCEPT WHERE
     8  SPECIFICALLY LIMITED TO SCHOOL DISTRICTS OF OTHER CLASSES.
     9     "CORRECTIVE ACTION."  CLASSIFICATION AS PROVIDED IN 22 PA.
    10  CODE § 403.3 (RELATING TO SINGLE ACCOUNTABILITY SYSTEM)
    11  INDICATING THAT A SCHOOL OR SCHOOL DISTRICT FAILED TO MEET
    12  ADEQUATE YEARLY PROGRESS FOR FOUR OR MORE CONSECUTIVE YEARS AND
    13  REQUIRING DEVELOPMENT OF A CORRECTIVE ACTION PLAN.
    14     "NO CHILD LEFT BEHIND ACT OF 2001."  THE NO CHILD LEFT BEHIND
    15  ACT OF 2001 (PUBLIC LAW 107-110, 115 STAT. 1425).
    16     "OFFICIAL VISITOR."  INCLUDES THE GOVERNOR, LIEUTENANT
    17  GOVERNOR, MEMBERS OF THE SENATE AND THE HOUSE OF
    18  REPRESENTATIVES, THE SECRETARY OF EDUCATION AND MEMBERS OF THE
    19  STATE BOARD OF EDUCATION.
    20     "PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TEST" OR "PSSA
    21  TEST."  A TEST DEVELOPED AND IMPLEMENTED BY THE DEPARTMENT OF
    22  EDUCATION TO DETERMINE ONLY ACADEMIC ACHIEVEMENT RELATING TO
    23  OBJECTIVE ACADEMIC STANDARDS IN THE AREAS OF READING, WRITING,
    24  MATHEMATICS AND SCIENCE AND WHICH TEST IS SO DEVELOPED AND
    25  IMPLEMENTED AS NECESSARY TO COMPLY WITH FEDERAL LAW.
    26     "PROFICIENT."  THE ATTAINMENT OF PERFORMANCE LEVELS IN THOSE
    27  SUBJECT AREAS ASSESSED THROUGH THE PENNSYLVANIA SYSTEM OF SCHOOL
    28  ASSESSMENT TEST AND REQUIRED UNDER THE NO CHILD LEFT BEHIND ACT
    29  OF 2001 (PUBLIC LAW 107-110, 115 STAT. 1425) THAT HAVE BEEN
    30  APPROVED BY THE STATE BOARD OF EDUCATION TO REFLECT SATISFACTORY
    20030S0080B1341                  - 8 -     

     1  ACADEMIC PERFORMANCE.
     2     "SCHOOL DISTRICT."  INCLUDES SCHOOL DISTRICTS OF ALL CLASSES,
     3  EXCEPT WHERE SPECIFICALLY LIMITED TO DISTRICTS OF A PARTICULAR
     4  CLASS OR CLASSES.
     5     "SCHOOL IMPROVEMENT."  CLASSIFICATION AS PROVIDED IN 22 PA.
     6  CODE § 403.3 (RELATING TO SINGLE ACCOUNTABILITY SYSTEM)
     7  INDICATING A SCHOOL OR SCHOOL DISTRICT HAS FAILED TO MAKE
     8  ADEQUATE YEARLY PROGRESS FOR TWO CONSECUTIVE YEARS AND NEEDS
     9  IMPROVEMENT.
    10     "SCHOOL TERM."  THE PERIOD OF TIME ELAPSING BETWEEN THE
    11  OPENING OF THE PUBLIC SCHOOLS IN THE FALL OF ONE YEAR AND THE
    12  CLOSING OF THE PUBLIC SCHOOLS IN THE SPRING OF THE FOLLOWING
    13  YEAR.
    14     "SCHOOL YEAR."  THE PERIOD OF TIME ELAPSING IN SCHOOL
    15  DISTRICTS OF THE FIRST CLASS BETWEEN THE FIRST DAY OF JANUARY
    16  AND THE 31ST DAY OF DECEMBER OF ANY YEAR, AND IN SCHOOL
    17  DISTRICTS OF ALL OTHER CLASSES BETWEEN THE FIRST DAY OF JULY OF
    18  ONE YEAR AND THE 30TH DAY OF JUNE OF THE FOLLOWING YEAR.
    19  EFFECTIVE JULY 1, 1997, FOR THE 1997-1998 SCHOOL YEAR AND EACH
    20  SCHOOL YEAR THEREAFTER, SCHOOL DISTRICTS WITH A YEAR-ROUND
    21  EDUCATION PROGRAM MAY SUBMIT A REQUEST TO THE SECRETARY OF
    22  EDUCATION FOR APPROVAL OR DISAPPROVAL TO EXTEND THE SCHOOL YEAR
    23  UNTIL AUGUST 15 FOR THE PURPOSE OF DETERMINING AVERAGE DAILY
    24  MEMBERSHIPS FOR STUDENTS WHOSE 180 DAYS OF INSTRUCTION CONTINUE
    25  INTO THE SUMMER MONTHS.
    26     "WARNING."  CLASSIFICATION AS PROVIDED IN 22 PA. CODE § 403.3
    27  (RELATING TO SINGLE ACCOUNTABILITY SYSTEM) INDICATING THAT A
    28  SCHOOL OR SCHOOL DISTRICT HAS FAILED TO MAKE ITS ACADEMIC
    29  PERFORMANCE TARGETS FOR ONE YEAR.
    30     SECTION 2.  SECTION 111(E) OF THE ACT, AMENDED JUNE 29, 1997
    20030S0080B1341                  - 9 -     

     1  (P.L.297, NO.30), IS AMENDED TO READ:
     2     SECTION 111.  BACKGROUND CHECKS OF PROSPECTIVE EMPLOYES;
     3  CONVICTION OF EMPLOYES OF CERTAIN OFFENSES.--* * *
     4     (E)  NO PERSON SUBJECT TO THIS ACT SHALL BE EMPLOYED IN A
     5  PUBLIC OR PRIVATE SCHOOL, INTERMEDIATE UNIT OR AREA VOCATIONAL-
     6  TECHNICAL SCHOOL WHERE THE REPORT OF CRIMINAL HISTORY RECORD
     7  INFORMATION INDICATES THE APPLICANT HAS BEEN CONVICTED, WITHIN
     8  FIVE (5) YEARS IMMEDIATELY PRECEDING THE DATE OF THE REPORT, OF
     9  ANY OF THE FOLLOWING OFFENSES:
    10     (1)  AN OFFENSE UNDER ONE OR MORE OF THE FOLLOWING PROVISIONS
    11  OF TITLE 18 OF THE PENNSYLVANIA CONSOLIDATED STATUTES:
    12         CHAPTER 25 (RELATING TO CRIMINAL HOMICIDE).
    13         SECTION 2702 (RELATING TO AGGRAVATED ASSAULT).
    14         [SECTION 2709 (RELATING TO HARASSMENT AND STALKING).]
    15         FORMER SECTION 2709(B) (RELATING TO STALKING).
    16         SECTION 2709.1 (RELATING TO STALKING).
    17         SECTION 2901 (RELATING TO KIDNAPPING).
    18         SECTION 2902 (RELATING TO UNLAWFUL RESTRAINT).
    19         SECTION 3121 (RELATING TO RAPE).
    20         SECTION 3122.1 (RELATING TO STATUTORY SEXUAL ASSAULT).
    21         SECTION 3123 (RELATING TO INVOLUNTARY DEVIATE SEXUAL
    22     INTERCOURSE).
    23         SECTION 3124.1 (RELATING TO SEXUAL ASSAULT).
    24         SECTION 3125 (RELATING TO AGGRAVATED INDECENT ASSAULT).
    25         SECTION 3126 (RELATING TO INDECENT ASSAULT).
    26         SECTION 3127 (RELATING TO INDECENT EXPOSURE).
    27         SECTION 4302 (RELATING TO INCEST).
    28         SECTION 4303 (RELATING TO CONCEALING DEATH OF CHILD).
    29         SECTION 4304 (RELATING TO ENDANGERING WELFARE OF
    30     CHILDREN).
    20030S0080B1341                 - 10 -     

     1         SECTION 4305 (RELATING TO DEALING IN INFANT CHILDREN).
     2         A FELONY OFFENSE UNDER SECTION 5902(B) (RELATING TO
     3     PROSTITUTION AND RELATED OFFENSES).
     4         SECTION 5903(C) OR (D) (RELATING TO OBSCENE AND OTHER
     5     SEXUAL MATERIALS AND PERFORMANCES).
     6         SECTION 6301 (RELATING TO CORRUPTION OF MINORS).
     7         SECTION 6312 (RELATING TO SEXUAL ABUSE OF CHILDREN).
     8     (2)  AN OFFENSE DESIGNATED AS A FELONY UNDER THE ACT OF APRIL
     9  14, 1972 (P.L.233, NO.64), KNOWN AS "THE CONTROLLED SUBSTANCE,
    10  DRUG, DEVICE AND COSMETIC ACT."
    11     (3)  AN OUT-OF-STATE OR FEDERAL OFFENSE SIMILAR IN NATURE TO
    12  THOSE CRIMES LISTED IN CLAUSES (1) AND (2).
    13     * * *
    14     SECTION 3.  SECTION 220(C) OF THE ACT, ADDED DECEMBER 9, 2002
    15  (P.L.1317, NO.153), IS AMENDED TO READ:
    16     SECTION 220.  STATE REPORT CARD.--* * *
    17     (C)  DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
    18  WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
    19  SUBSECTION:
    20     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    21  COMMONWEALTH.
    22     "LOCAL EDUCATION AGENCY."  A SCHOOL DISTRICT, CYBER CHARTER
    23  SCHOOL, CHARTER SCHOOL, AREA VOCATIONAL-TECHNICAL SCHOOL OR
    24  INTERMEDIATE UNIT.
    25     ["NO CHILD LEFT BEHIND ACT OF 2001."  THE NO CHILD LEFT
    26  BEHIND ACT OF 2001 (PUBLIC LAW 107-110, 115 STAT. 1425).]
    27     * * *
    28     SECTION 4.  SECTION 671 OF THE ACT OF MARCH 10, 1949 (P.L.30,
    29  NO.14), AMENDED JULY 31, 1963 (P.L.389, NO.206), IS AMENDED TO
    30  READ:
    20030S0080B1341                 - 11 -     

     1     SECTION 671.  FISCAL YEAR.--(A)  IN ALL SCHOOL DISTRICTS OF
     2  THE SECOND, THIRD, AND FOURTH CLASS, THE FISCAL YEAR SHALL BEGIN
     3  ON THE FIRST DAY OF JULY IN EACH YEAR: PROVIDED, THAT THE BOARD
     4  OF SCHOOL DIRECTORS OF ANY DISTRICT OF THE SECOND CLASS MAY, BY
     5  RESOLUTION ADOPTED BY TWO-THIRDS VOTE OF THE MEMBERS THEREOF AT
     6  A MEETING OF THE BOARD AFTER NOT LESS THAN TEN DAYS' NOTICE OF
     7  THE FACT THAT SUCH RESOLUTION WOULD BE PRESENTED FOR ACTION AT
     8  SUCH MEETING, FIX THE FISCAL YEAR OF SUCH SCHOOL DISTRICT SO AS
     9  TO BEGIN ON THE FIRST DAY OF JANUARY IN EACH YEAR INSTEAD OF ON
    10  THE FIRST DAY OF JULY AS HEREINABOVE PROVIDED.
    11     (B)  (1)  FOR FISCAL YEARS BEGINNING AFTER JUNE 30, 2004, A
    12  SCHOOL DISTRICT OF THE SECOND, THIRD OR FOURTH CLASS MAY DELAY
    13  THE ADOPTION OF ITS ANNUAL BUDGET BEYOND THE LAST DAY IN JUNE
    14  WHERE LEGISLATION PROVIDING THE APPROPRIATION FOR BASIC
    15  EDUCATION FUNDING TO BE PAID AS A REIMBURSEMENT FOR THE
    16  PRECEDING SCHOOL YEAR IS NOT ENACTED BY JUNE 15.
    17     (2)  A SCHOOL DISTRICT THAT DELAYS THE ADOPTION OF ITS ANNUAL
    18  BUDGET UNDER PARAGRAPH (1) SHALL ADOPT AN ANNUAL BUDGET NO LATER
    19  THAN FIFTEEN DAYS SUBSEQUENT TO THE ENACTMENT OF LEGISLATION
    20  PROVIDING THE APPROPRIATION FOR BASIC EDUCATION FUNDING TO BE
    21  PAID AS A REIMBURSEMENT FOR THE PRECEDING YEAR.
    22     (3)  THE PROVISIONS OF SECTION 687 REQUIRING TEN DAYS' PUBLIC
    23  NOTICE PRIOR TO FINAL ACTION SHALL APPLY IN CASES WHEN THE
    24  ADOPTION OF A SCHOOL DISTRICT'S BUDGET IS DELAYED UNDER THIS
    25  SUBSECTION.
    26     SECTION 5.  SECTION 672(A) OF THE ACT, AMENDED JUNE 16, 1972
    27  (P.L.449, NO.138), IS AMENDED TO READ:
    28     SECTION 672.  TAX LEVY; LIMITATIONS.--(A)  IN ALL SCHOOL
    29  DISTRICTS OF THE SECOND, THIRD, AND FOURTH CLASS, ALL SCHOOL
    30  TAXES SHALL BE LEVIED AND ASSESSED BY THE BOARD OF SCHOOL
    20030S0080B1341                 - 12 -     

     1  DIRECTORS THEREIN, DURING THE MONTH OF FEBRUARY OR MARCH OR
     2  APRIL OR MAY OR JUNE EACH YEAR, OR NO LATER THAN TWENTY DAYS
     3  FOLLOWING THE ENACTMENT OF LEGISLATION PROVIDING THE
     4  APPROPRIATION FOR BASIC EDUCATION FUNDING TO BE PAID AS A
     5  REIMBURSEMENT FOR THE PRECEDING SCHOOL YEAR, FOR THE ENSUING
     6  FISCAL YEAR, EXCEPT IN DISTRICTS OF THE SECOND CLASS WHERE THE
     7  FISCAL YEAR BEGINS ON THE FIRST DAY OF JANUARY, IN WHICH THE
     8  SCHOOL TAXES SHALL BE LEVIED AND ASSESSED DURING THE MONTH OF
     9  OCTOBER OR NOVEMBER OF EACH YEAR. IN SUCH SCHOOL DISTRICTS THE
    10  TAX RATE SHALL NOT EXCEED TWENTY-FIVE MILLS ON THE DOLLAR, ON
    11  THE TOTAL AMOUNT OF THE ASSESSED VALUATION OF ALL PROPERTY
    12  TAXABLE FOR SCHOOL PURPOSES THEREIN. EACH SCHOOL DISTRICT OF THE
    13  SECOND, THIRD OR FOURTH CLASS MAY ALSO COLLECT A PER CAPITA TAX
    14  ON EACH RESIDENT OR INHABITANT OF SUCH DISTRICT OVER EIGHTEEN
    15  YEARS OF AGE, AS HEREIN PROVIDED.
    16     * * *
    17     SECTION 6.  SECTION 679 OF THE ACT, AMENDED NOVEMBER 26, 1982
    18  (P.L.760, NO.215), IS AMENDED TO READ:
    19     SECTION 679.  PER CAPITA TAXES.--EACH RESIDENT OR INHABITANT,
    20  OVER EIGHTEEN YEARS OF AGE, IN EVERY SCHOOL DISTRICT OF THE
    21  SECOND, THIRD, AND FOURTH CLASS, WHICH SHALL LEVY SUCH TAX,
    22  SHALL ANNUALLY PAY, FOR THE USE OF THE SCHOOL DISTRICT IN WHICH
    23  HE OR SHE IS A RESIDENT OR INHABITANT, A PER CAPITA TAX OF NOT
    24  LESS THAN ONE DOLLAR NOR MORE THAN FIVE DOLLARS, AS MAY BE
    25  ASSESSED BY THE LOCAL SCHOOL DISTRICT. THE TAX COLLECTOR SHALL
    26  NOT PROCEED AGAINST A SPOUSE OR HIS EMPLOYER UNTIL HE HAS
    27  PURSUED REMEDIES AGAINST THE DELINQUENT TAXPAYER AND THE
    28  TAXPAYER'S EMPLOYER UNDER THIS SECTION.
    29     EACH SCHOOL DISTRICT MAY EXEMPT ANY PERSON WHOSE TOTAL INCOME
    30  FROM ALL SOURCES IS LESS THAN [FIVE THOUSAND DOLLARS] TEN
    20030S0080B1341                 - 13 -     

     1  THOUSAND DOLLARS PER ANNUM FROM ITS PER CAPITA TAX OR ANY
     2  PORTION THEREOF. THE SCHOOL DISTRICT MAY ADOPT AND EMPLOY
     3  REGULATIONS FOR THE PROCESSING OF CLAIMS FOR THE EXEMPTION.
     4     SECTION 7.  SECTION 687 OF THE ACT IS AMENDED BY ADDING A
     5  SUBSECTION TO READ:
     6     SECTION 687.  ANNUAL BUDGET; ADDITIONAL OR INCREASED
     7  APPROPRIATIONS; TRANSFER OF FUNDS.--* * *
     8     (J)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS ACT, THE
     9  BOARD OF SCHOOL DIRECTORS OF EACH SCHOOL DISTRICT MAY REOPEN ITS
    10  2003-2004 BUDGET TO REFLECT ANY STATE ALLOCATIONS FOR FISCAL
    11  YEAR 2003-2004 PROVIDED BY THE GENERAL ASSEMBLY THROUGH THIS
    12  ACT.
    13     SECTION 8.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    14     SECTION 688.  LIMITATIONS ON CERTAIN UNRESERVED FUND
    15  BALANCES.--(A)  FOR THE 2005-2006 SCHOOL YEAR AND EACH SCHOOL
    16  YEAR THEREAFTER, NO SCHOOL DISTRICT SHALL APPROVE AN INCREASE IN
    17  REAL PROPERTY TAXES UNLESS IT HAS ADOPTED A BUDGET THAT INCLUDES
    18  AN ESTIMATED ENDING UNRESERVED UNDESIGNATED FUND BALANCE LESS
    19  THAN THE PERCENTAGES SET FORTH AS FOLLOWS:
    20  SCHOOL DISTRICT            ESTIMATED, ENDING UNRESERVED UNDESIGNATED
    21  TOTAL BUDGETED                     FUND BALANCE AS PERCENTAGE OF
    22  EXPENDITURES                       TOTAL BUDGETED EXPENDITURES
    23  LESS THAN OR EQUAL TO $11,999,999              12%
    24  BETWEEN $12,000,000 AND $12,999,999            11.5%
    25  BETWEEN $13,000,000 AND $13,999,999            11%
    26  BETWEEN $14,000,000 AND $14,999,999            10.5%
    27  BETWEEN $15,000,000 AND $15,999,999            10%
    28  BETWEEN $16,000,000 AND $16,999,999            9.5%
    29  BETWEEN $17,000,000 AND $17,999,999            9%
    30  BETWEEN $18,000,000 AND $18,999,999            8.5%
    20030S0080B1341                 - 14 -     

     1  GREATER THAN OR EQUAL TO $19,000,000           8%
     2     (B)  BY AUGUST 15, 2005, AND AUGUST 15 OF EACH YEAR
     3  THEREAFTER, EACH SCHOOL DISTRICT THAT APPROVES AN INCREASE IN
     4  REAL PROPERTY TAXES SHALL PROVIDE THE DEPARTMENT OF EDUCATION
     5  WITH INFORMATION CERTIFYING COMPLIANCE WITH THIS SECTION. SUCH
     6  INFORMATION SHALL BE PROVIDED IN A FORM AND MANNER PRESCRIBED BY
     7  THE DEPARTMENT OF EDUCATION AND SHALL INCLUDE INFORMATION ON THE
     8  SCHOOL DISTRICT'S ESTIMATED, ENDING UNRESERVED UNDESIGNATED FUND
     9  BALANCE EXPRESSED AS A DOLLAR AMOUNT AND AS A PERCENTAGE OF THE
    10  SCHOOL DISTRICT'S TOTAL BUDGETED EXPENDITURES FOR THAT SCHOOL
    11  YEAR.
    12     (C)  AS USED IN THIS SECTION, "ESTIMATED, ENDING UNRESERVED
    13  UNDESIGNATED FUND BALANCE" SHALL MEAN THAT PORTION OF THE FUND
    14  BALANCE, WHICH IS APPROPRIABLE FOR EXPENDITURE OR NOT LEGALLY OR
    15  OTHERWISE SEGREGATED FOR A SPECIFIC OR TENTATIVE FUTURE USE,
    16  PROJECTED FOR THE CLOSE OF THE SCHOOL YEAR FOR WHICH A SCHOOL
    17  DISTRICT'S BUDGET WAS ADOPTED AND HELD IN THE GENERAL FUND
    18  ACCOUNTS OF THE SCHOOL DISTRICT.
    19     SECTION 9.  ARTICLE XII-A OF THE ACT IS REPEALED.
    20     SECTION 10.  SECTION 1302 OF THE ACT, AMENDED JUNE 22, 2001
    21  (P.L.530, NO.35), IS AMENDED TO READ:
    22     SECTION 1302.  RESIDENCE AND RIGHT TO FREE SCHOOL
    23  PRIVILEGES.--(A)  A CHILD SHALL BE CONSIDERED A RESIDENT OF THE
    24  SCHOOL DISTRICT IN WHICH HIS PARENTS OR THE GUARDIAN OF HIS
    25  PERSON RESIDES. FEDERAL INSTALLATIONS ARE CONSIDERED A PART OF
    26  THE SCHOOL DISTRICT OR DISTRICTS IN WHICH THEY ARE SITUATE AND
    27  THE CHILDREN RESIDING ON SUCH INSTALLATIONS SHALL BE COUNTED AS
    28  RESIDENT PUPILS OF THE SCHOOL DISTRICT. WHEN A RESIDENT OF ANY
    29  SCHOOL DISTRICT KEEPS IN HIS HOME A CHILD OF SCHOOL AGE, NOT HIS
    30  OWN, SUPPORTING THE CHILD GRATIS AS IF IT WERE HIS OWN, SUCH
    20030S0080B1341                 - 15 -     

     1  CHILD SHALL BE ENTITLED TO ALL FREE SCHOOL PRIVILEGES ACCORDED
     2  TO RESIDENT SCHOOL CHILDREN OF THE DISTRICT, INCLUDING THE RIGHT
     3  TO ATTEND THE PUBLIC HIGH SCHOOL MAINTAINED IN SUCH DISTRICT OR
     4  IN OTHER DISTRICTS IN THE SAME MANNER AS THOUGH SUCH CHILD WERE
     5  IN FACT A RESIDENT SCHOOL CHILD OF THE DISTRICT, AND SHALL BE
     6  SUBJECT TO ALL THE REQUIREMENTS PLACED UPON RESIDENT SCHOOL
     7  CHILDREN OF THE DISTRICT. BEFORE SUCH CHILD MAY BE ACCEPTED AS A
     8  PUPIL, SUCH RESIDENT SHALL FILE WITH THE SECRETARY OF THE BOARD:
     9     (1)  APPROPRIATE LEGAL DOCUMENTATION TO SHOW DEPENDENCY OR
    10  GUARDIANSHIP; OR
    11     (2)  A SWORN STATEMENT THAT HE IS A RESIDENT OF THE DISTRICT,
    12  THAT HE IS SUPPORTING THE CHILD GRATIS, THAT HE WILL ASSUME ALL
    13  PERSONAL OBLIGATIONS FOR THE CHILD RELATIVE TO SCHOOL
    14  REQUIREMENTS, AND THAT HE INTENDS TO SO KEEP AND SUPPORT THE
    15  CHILD CONTINUOUSLY AND NOT MERELY THROUGH THE SCHOOL TERM. THE
    16  SCHOOL BOARD, PURSUANT TO GUIDELINES ISSUED BY THE DEPARTMENT OF
    17  EDUCATION, MAY REQUIRE OTHER REASONABLE INFORMATION TO BE
    18  SUBMITTED BY THE RESIDENT TO SUBSTANTIATE THE SWORN STATEMENT.
    19  THE FORM CONTAINING THE SWORN STATEMENT SHALL INCLUDE NOTICE IN
    20  LARGE PRINT OF THE PENALTY FOR PROVIDING FALSE INFORMATION IN
    21  THE SWORN STATEMENT.
    22     (B)  IF IT IS FOUND THAT INFORMATION CONTAINED IN THE SWORN
    23  STATEMENT IS FALSE, THE CHILD MUST BE REMOVED FROM THE SCHOOL
    24  AFTER NOTICE OF AN OPPORTUNITY TO APPEAL THE REMOVAL PURSUANT TO
    25  THE APPROPRIATE GRIEVANCE POLICY OF THE SCHOOL DISTRICT.
    26     (C)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE
    27  CONTRARY, A PERSON WHO KNOWINGLY PROVIDES FALSE INFORMATION IN
    28  THE SWORN STATEMENT FOR THE PURPOSE OF ENROLLING A CHILD IN A
    29  SCHOOL DISTRICT FOR WHICH THE CHILD IS NOT ELIGIBLE COMMITS A
    30  SUMMARY OFFENSE AND SHALL, UPON CONVICTION FOR SUCH VIOLATION,
    20030S0080B1341                 - 16 -     

     1  BE SENTENCED TO PAY A FINE OF NO MORE THAN THREE HUNDRED DOLLARS
     2  ($300) FOR THE BENEFIT OF THE SCHOOL DISTRICT IN WHICH THE
     3  PERSON RESIDES, OR TO PERFORM UP TO TWO HUNDRED FORTY (240)
     4  HOURS OF COMMUNITY SERVICE, OR BOTH. IN ADDITION, THE PERSON
     5  SHALL PAY ALL COURT COSTS AND SHALL BE LIABLE TO THE SCHOOL
     6  DISTRICT FOR AN AMOUNT EQUAL TO THE COST OF TUITION CALCULATED
     7  IN ACCORDANCE WITH SECTION 2561 DURING THE PERIOD OF ENROLLMENT.
     8     SECTION 11.  SECTION 1376 OF THE ACT, AMENDED JUNE 7, 1993
     9  (P.L.49, NO.16), JUNE 30, 1995 (P.L.220, NO.26) AND JUNE 22,
    10  2001 (P.L.530, NO.35), IS AMENDED TO READ:
    11     SECTION 1376.  COST OF TUITION AND MAINTENANCE OF CERTAIN
    12  EXCEPTIONAL CHILDREN IN APPROVED INSTITUTIONS.--(A)  WHEN ANY
    13  CHILD BETWEEN SCHOOL ENTRY AGE AND TWENTY-ONE (21) YEARS OF AGE
    14  AND RESIDENT IN THIS COMMONWEALTH, WHO IS BLIND OR DEAF, OR HAS
    15  CEREBRAL PALSY AND/OR NEUROLOGICAL IMPAIRMENT AND/OR MUSCULAR
    16  DYSTROPHY AND/OR IS MENTALLY RETARDED AND/OR HAS A SERIOUS
    17  EMOTIONAL DISTURBANCE AND/OR HAS AUTISM/PERVASIVE DEVELOPMENTAL
    18  DISORDER AND IS ENROLLED, WITH THE APPROVAL OF THE DEPARTMENT OF
    19  EDUCATION, AS A PUPIL IN AN APPROVED PRIVATE SCHOOL APPROVED BY
    20  THE DEPARTMENT OF EDUCATION, IN ACCORDANCE WITH STANDARDS AND
    21  REGULATIONS PROMULGATED BY THE STATE BOARD OF EDUCATION, THE
    22  SCHOOL DISTRICT IN WHICH SUCH CHILD IS RESIDENT OR, FOR STUDENTS
    23  PLACED BY A CHARTER SCHOOL, THE CHARTER SCHOOL IN WHICH THE
    24  STUDENT WAS ENROLLED SHALL PAY THE GREATER OF EITHER TWENTY PER
    25  CENTUM (20%) OF THE ACTUAL AUDITED COST OF TUITION AND
    26  MAINTENANCE OF SUCH CHILD IN SUCH SCHOOL, AS DETERMINED BY THE
    27  DEPARTMENT OF EDUCATION, OR ITS "TUITION CHARGE PER ELEMENTARY
    28  PUPIL" OR ITS "TUITION CHARGE PER HIGH SCHOOL PUPIL," AS
    29  CALCULATED PURSUANT TO SECTION 2561, AND THE COMMONWEALTH SHALL
    30  PAY, OUT OF FUNDS APPROPRIATED TO THE DEPARTMENT FOR SPECIAL
    20030S0080B1341                 - 17 -     

     1  EDUCATION, THE BALANCE DUE FOR THE COSTS OF SUCH CHILD'S TUITION
     2  AND MAINTENANCE, AS DETERMINED BY THE DEPARTMENT. FOR THE SCHOOL
     3  YEARS 1989-1990, 1990-1991 AND 1991-1992, THE SCHOOL DISTRICT
     4  PAYMENT SHALL BE NO GREATER THAN FORTY PERCENT (40%) OF THE
     5  ACTUAL AUDITED COSTS OF TUITION AND MAINTENANCE OF SUCH CHILD IN
     6  SUCH SCHOOL. FOR THE 1992-1993 SCHOOL YEAR AND EACH SCHOOL YEAR
     7  THEREAFTER, THE SCHOOL DISTRICT OR CHARTER SCHOOL PAYMENT SHALL
     8  BE THE GREATER OF FORTY PERCENT (40%) OF THE ACTUAL AUDITED
     9  COSTS OF TUITION AND MAINTENANCE OF SUCH CHILD IN SUCH SCHOOL,
    10  AS DETERMINED BY THE DEPARTMENT OF EDUCATION, OR ITS "TUITION
    11  CHARGE PER ELEMENTARY PUPIL" OR ITS "TUITION CHARGE PER HIGH
    12  SCHOOL PUPIL," AS CALCULATED PURSUANT TO SECTION 2561, AND THE
    13  COMMONWEALTH SHALL PAY, OUT OF FUNDS APPROPRIATED TO THE
    14  DEPARTMENT FOR APPROVED PRIVATE SCHOOLS, THE BALANCE DUE FOR THE
    15  COSTS OF SUCH CHILD'S TUITION AND MAINTENANCE, AS DETERMINED BY
    16  THE DEPARTMENT. THE DEPARTMENT WILL CREDIT THE DISTRICT OF
    17  RESIDENCE WITH AVERAGE DAILY MEMBERSHIP FOR SUCH CHILD
    18  CONSISTENT WITH THE RULES OF PROCEDURE DEVELOPED IN ACCORDANCE
    19  WITH SECTION 2501. IF THE RESIDENCE OF SUCH CHILD IN A
    20  PARTICULAR SCHOOL DISTRICT CANNOT BE DETERMINED, THE
    21  COMMONWEALTH SHALL PAY, OUT OF MONEYS APPROPRIATED TO THE
    22  DEPARTMENT FOR SPECIAL EDUCATION, THE WHOLE COST OF TUITION AND
    23  MAINTENANCE OF SUCH CHILD. [THE DEPARTMENT OF EDUCATION SHALL BE
    24  PROVIDED WITH SUCH FINANCIAL DATA FROM APPROVED PRIVATE SCHOOLS
    25  AS MAY BE NECESSARY TO DETERMINE THE REASONABLENESS OF COSTS FOR
    26  TUITION AND ROOM AND BOARD CONCERNING PENNSYLVANIA RESIDENT
    27  APPROVED REIMBURSED STUDENTS. THE DEPARTMENT OF EDUCATION SHALL
    28  EVALUATE SUCH DATA AND SHALL DISALLOW ANY COST DEEMED
    29  UNREASONABLE. ANY COSTS DEEMED UNREASONABLE BY THE DEPARTMENT OF
    30  EDUCATION FOR DISALLOWANCE SHALL BE CONSIDERED AN ADJUDICATION
    20030S0080B1341                 - 18 -     

     1  WITHIN THE MEANING OF TITLE 2 OF THE PA.C.S. (RELATING TO
     2  ADMINISTRATIVE LAW AND PROCEDURE) AND REGULATIONS PROMULGATED
     3  THEREUNDER.]
     4     (B)  WHEN ANY PERSON LESS THAN SCHOOL ENTRY AGE OR MORE THAN
     5  TWENTY-ONE (21) YEARS OF AGE AND RESIDENT IN THIS COMMONWEALTH,
     6  WHO IS BLIND OR DEAF, OR HAS CEREBRAL PALSY AND/OR HAS
     7  NEUROLOGICAL IMPAIRMENT AND/OR HAS MUSCULAR DYSTROPHY, OR HAS
     8  AUTISM/PERVASIVE DEVELOPMENTAL DELAY, AND IS ENROLLED, WITH THE
     9  APPROVAL OF THE DEPARTMENT OF EDUCATION, AS A PUPIL IN AN
    10  APPROVED PRIVATE SCHOOL APPROVED BY THE DEPARTMENT OF EDUCATION,
    11  THE COMMONWEALTH SHALL PAY TO SUCH SCHOOL, OUT OF MONEYS
    12  APPROPRIATED TO THE DEPARTMENT FOR SPECIAL EDUCATION, THE ACTUAL
    13  AUDITED COST OF TUITION AND MAINTENANCE OF SUCH PERSON, AS
    14  DETERMINED BY THE DEPARTMENT OF EDUCATION, SUBJECT TO REVIEW AND
    15  APPROVAL IN ACCORDANCE WITH STANDARDS AND REGULATIONS
    16  PROMULGATED BY THE STATE BOARD OF EDUCATION IN ACCORDANCE WITH
    17  SUBSECTION (B.1), AND IN ADDITION, IN THE CASE OF ANY CHILD LESS
    18  THAN SCHOOL ENTRY AGE, WHO IS BLIND, THE COST, AS DETERMINED BY
    19  THE DEPARTMENT OF EDUCATION OF INSTRUCTING THE PARENT OF SUCH
    20  BLIND CHILD IN CARING FOR SUCH CHILD.
    21     (B.1)  FOR THE 2004-2005 SCHOOL YEAR AND EACH SCHOOL YEAR
    22  THEREAFTER, AN APPROVED PRIVATE SCHOOL SHALL SUBMIT TO THE
    23  DEPARTMENT OF EDUCATION SUCH INFORMATION AS THE DEPARTMENT MAY
    24  REASONABLY REQUIRE TO DETERMINE ITS BUDGETED COSTS FOR THE
    25  UPCOMING SCHOOL YEAR. BASED UPON THIS INFORMATION AND THE MOST
    26  RECENT SETTLED AUDIT, THE DEPARTMENT OF EDUCATION SHALL DEVELOP
    27  AN INTERIM REIMBURSEMENT RATE FOR THE APPROVED PRIVATE SCHOOL.
    28  THE DEPARTMENT OF EDUCATION SHALL PROVIDE THE APPROVED PRIVATE
    29  SCHOOL WITH MONTHLY PAYMENTS IN ADVANCE OF THE FINAL COST
    30  SETTLEMENT AS PROVIDED FOR IN SUBSECTION (C.2). THE DEPARTMENT
    20030S0080B1341                 - 19 -     

     1  OF EDUCATION SHALL ADOPT FINAL REIMBURSEMENT RATES BASED ON THE
     2  FINAL COST SETTLEMENT. THE DEPARTMENT OF EDUCATION MAY WITHHOLD
     3  A PORTION OF SUCH PAYMENTS NOT EXCEEDING FIVE PERCENT (5%) OF
     4  SUCH PAYMENTS, PENDING FINAL COST SETTLEMENT. IN NO EVENT SHALL
     5  EITHER THE PAYMENTS MADE IN ADVANCE OF THE FINAL COST SETTLEMENT
     6  OR FINAL REIMBURSEMENTS BASED ON THE FINAL COST SETTLEMENT MADE
     7  BY THE DEPARTMENT OF EDUCATION EXCEED THE APPROPRIATION
     8  AVAILABLE FOR APPROVED PRIVATE SCHOOLS.
     9     [(C)  EACH APPROVED PRIVATE SCHOOL, PRIOR TO THE START OF THE
    10  SCHOOL YEAR, SHALL SUBMIT TO THE DEPARTMENT SUCH INFORMATION AS
    11  THE DEPARTMENT MAY REQUIRE IN ORDER TO ESTABLISH AN ESTIMATE OF
    12  REIMBURSABLE COSTS. BASED UPON THIS INFORMATION, ANY OTHER DATA
    13  DEEMED NECESSARY BY THE DEPARTMENT AND IN ACCORDANCE WITH
    14  DEPARTMENT STANDARDS, THE DEPARTMENT SHALL DEVELOP FOR EACH
    15  APPROVED PRIVATE SCHOOL AN ESTIMATE OF REIMBURSABLE COSTS. BASED
    16  UPON SUCH ESTIMATE, THE DEPARTMENT SHALL PROVIDE EACH APPROVED
    17  PRIVATE SCHOOL WITH MONTHLY PAYMENTS IN ADVANCE OF DEPARTMENT
    18  AUDIT. THE DEPARTMENT MAY WITHHOLD A PORTION OF SUCH PAYMENTS
    19  NOT EXCEEDING FIVE PERCENT (5%) OF SUCH PAYMENT, PENDING FINAL
    20  AUDIT. IN NO EVENT SHALL EITHER THE ADVANCE PAYMENTS OR FINAL
    21  REIMBURSEMENT MADE BY THE DEPARTMENT FOLLOWING AUDIT EXCEED THE
    22  APPROPRIATION AVAILABLE FOR APPROVED PRIVATE SCHOOLS.]
    23     (C.1)  ANY FUNDS REMAINING FROM THE APPROPRIATION LINE ITEMS
    24  "FOR SPECIAL EDUCATION - APPROVED PRIVATE SCHOOLS" OR FOR
    25  PENNSYLVANIA CHARTER SCHOOLS FOR THE DEAF AND BLIND FROM THE
    26  GENERAL APPROPRIATIONS ACTS FOR FISCAL YEARS 1978-1979 AND EACH
    27  FISCAL YEAR THEREAFTER SHALL BE TRANSFERRED BY THE STATE
    28  TREASURER INTO A RESTRICTED ACCOUNT (CONTINUING APPROPRIATION)
    29  FOR AUDIT RESOLUTION WHICH IS HEREBY ESTABLISHED. THE DEPARTMENT
    30  OF EDUCATION SHALL ALSO DEPOSIT INTO THIS RESTRICTED ACCOUNT ANY
    20030S0080B1341                 - 20 -     

     1  FUNDS RETURNED TO OR RECOVERED BY THE DEPARTMENT FROM APPROVED
     2  PRIVATE SCHOOLS OR CHARTERED SCHOOLS FOR OVERPAYMENTS DURING
     3  FISCAL YEARS 1978-1979 AND EACH FISCAL YEAR THEREAFTER. THE
     4  FUNDS IN THE RESTRICTED ACCOUNT ARE HEREBY APPROPRIATED UPON
     5  APPROVAL OF THE GOVERNOR TO THE DEPARTMENT OF EDUCATION FOR
     6  PAYMENTS TO APPROVED PRIVATE SCHOOLS FOR AUDIT RESOLUTIONS FOR
     7  FISCAL YEARS 1978-1979 AND EACH FISCAL YEAR THEREAFTER. FUNDS IN
     8  THIS RESTRICTED ACCOUNT SHALL NOT BE SUBJECT TO THE LIMITATIONS
     9  IN SUBSECTION [(C)] (B.1) WHICH PROHIBIT ADVANCE PAYMENTS AND
    10  FINAL REIMBURSEMENT FROM EXCEEDING THE APPROPRIATION AVAILABLE
    11  FOR APPROVED PRIVATE SCHOOLS. DURING THE 1995-1996 FISCAL YEAR
    12  AND DURING EACH FISCAL YEAR THEREAFTER, THE DEPARTMENT OF
    13  EDUCATION SHALL REVIEW THE ACTIVITY IN THE RESTRICTED ACCOUNT
    14  AND MAY RECOMMEND THAT THE GOVERNOR AUTHORIZE THE LAPSING INTO
    15  THE GENERAL FUND OF ANY FUNDS THAT ARE ESTIMATED NOT TO BE
    16  NEEDED FOR AUDIT RESOLUTION.
    17     (C.2)  BEGINNING WITH THE 2004-2005 SCHOOL YEAR AND EACH
    18  SCHOOL YEAR THEREAFTER, THE DEPARTMENT OF EDUCATION SHALL
    19  ESTABLISH PROCEDURES AND AUDIT STANDARDS TO GOVERN THE SCOPE OF
    20  REPORTABLE COSTS AND THE METHODS USED TO EXAMINE AND DETERMINE
    21  ALLOWABILITY OF COSTS. COST REPORTS SHALL BE PREPARED IN
    22  ACCORDANCE WITH THE ESTABLISHED PROCEDURES AND AUDIT STANDARDS
    23  AND SUBMITTED BY THE APPROVED PRIVATE SCHOOL TO THE DEPARTMENT
    24  OF EDUCATION AFTER THE CONCLUSION OF THE SCHOOL YEAR. THE
    25  DEPARTMENT OF EDUCATION SHALL PROCESS THESE COST REPORTS AND
    26  SETTLE ANY OUTSTANDING PAYMENTS DUE TO OR FROM THE APPROVED
    27  PRIVATE SCHOOL WITHIN ONE (1) YEAR OF THE COST REPORT
    28  SUBMISSION. IF THE COST REPORTS ARE SUBJECT TO ANY APPEALS OR
    29  POSTSETTLEMENT RESOLUTION, THE DEPARTMENT OF EDUCATION SHALL
    30  HAVE AN ADDITIONAL THREE (3) MONTHS TO SETTLE. AUDITS OF COST
    20030S0080B1341                 - 21 -     

     1  REPORTS SUBMITTED FOR SCHOOL YEARS PRIOR TO THE 2004-2005 SCHOOL
     2  YEAR SHALL BE COMPLETED IN A MANNER CONSISTENT WITH PRIOR AUDIT
     3  PRACTICES. AN APPROVED PRIVATE SCHOOL MAY SUBMIT AN AUDIT
     4  PREPARED BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT PROVIDED
     5  THE FOLLOWING HAVE OCCURRED:
     6     (1)  THE DEPARTMENT OF EDUCATION HAS FAILED TO PROCESS AND
     7  SETTLE THE COST REPORTS WITHIN TWELVE (12) MONTHS FROM
     8  SUBMISSION BY THE APPROVED PRIVATE SCHOOL.
     9     (2)  THE DEPARTMENT OF EDUCATION HAS FAILED TO SETTLE ANY
    10  APPEALS OR POSTSETTLEMENT RESOLUTION WITHIN FIFTEEN (15) MONTHS
    11  FROM SUBMISSION BY THE APPROVED PRIVATE SCHOOL.
    12     (3)  THE APPROVED PRIVATE SCHOOL HAS RESPONDED TO REASONABLE
    13  REQUESTS FOR INFORMATION AND DOCUMENTS BY THE DEPARTMENT OF
    14  EDUCATION.
    15  UPON RECEIPT OF THE INDEPENDENT AUDIT, THE DEPARTMENT OF
    16  EDUCATION SHALL HAVE THREE (3) MONTHS TO REVIEW THE AUDIT AND
    17  SETTLE ANY OUTSTANDING PAYMENTS DUE TO OR FROM THE APPROVED
    18  PRIVATE SCHOOL.
    19     (D)  NO PRIVATE INSTITUTION RECEIVING PAYMENT IN ACCORDANCE
    20  WITH THIS SECTION SHALL IMPOSE ANY CHARGE ON THE STUDENT AND/OR
    21  PARENTS WHO ARE PENNSYLVANIA APPROVED REIMBURSABLE RESIDENTS FOR
    22  A PROGRAM OF INDIVIDUALIZED INSTRUCTION AND MAINTENANCE
    23  APPROPRIATE TO THE CHILD'S NEEDS; EXCEPT THAT CHARGES FOR
    24  SERVICES NOT PART OF SUCH PROGRAM MAY BE MADE IF AGREED TO BY
    25  THE PARENTS.
    26     [(E)  (1)  THE EDUCATION COMMITTEES OF THE SENATE AND HOUSE
    27  OF REPRESENTATIVES ARE DIRECTED TO JOINTLY EXAMINE THE ISSUES OF
    28  THE FUNDING OF APPROVED PRIVATE SCHOOLS AND SPECIAL EDUCATION
    29  STUDENTS' ACCESS TO APPROVED PRIVATE SCHOOLS AS PART OF THE FULL
    30  CONTINUUM OF SPECIAL EDUCATION PLACEMENTS. THE COMMITTEES'
    20030S0080B1341                 - 22 -     

     1  EXAMINATION SHOULD ADDRESS, AT A MINIMUM, THE FOLLOWING ISSUES:
     2     (I)  THE FUNDING METHODOLOGY WHICH SUPPORTS THE SCHOOL
     3  DISTRICT'S RESPONSIBILITY FOR INDIVIDUALIZED, APPROPRIATE
     4  EDUCATIONAL SERVICES TO SPECIAL EDUCATION STUDENTS THROUGH
     5  ACCESS TO THE MOST COMPREHENSIVE CONTINUUM OF EDUCATIONAL
     6  OPTIONS AND SETTINGS.
     7     (II)  THE ROLE OF THE APPROVED PRIVATE SCHOOL IN THE MANDATED
     8  CONTINUUM OF SPECIAL EDUCATION SERVICES AVAILABLE TO STUDENTS IN
     9  PENNSYLVANIA.
    10     (III)  THE RELATIVE ROLES OF THE DEPARTMENT OF EDUCATION AND
    11  SCHOOL DISTRICTS TO ENSURE FREE APPROPRIATE PUBLIC EDUCATION
    12  (FAPE) THROUGH ADEQUATE FUNDING AND APPROPRIATE DISTRIBUTION OF
    13  COMPREHENSIVE SERVICES.
    14     (IV)  THE PROVISIONS OF THE INDIVIDUALS WITH DISABILITIES
    15  EDUCATION ACT (IDEA) (P.L.101-476), THE CORDERO COURT ORDERS,
    16  THIS ACT AND 22 PA. CODE CHS. 14 AND 342 AS THEY RELATE TO THE
    17  PROVISION OF PROGRAMS AND SERVICES TO SPECIAL EDUCATION STUDENTS
    18  SHOULD BE CAREFULLY REVIEWED AS THEY PERTAIN TO APPROVED PRIVATE
    19  SCHOOLS, CONTINUUM OF PLACEMENT OPTIONS, FUNDING, FAPE AND OTHER
    20  PERTINENT ISSUES.
    21     (2)  THE COMMITTEES SHALL REPORT BACK TO THE GENERAL ASSEMBLY
    22  BY NOVEMBER 15, 1993, WITH LEGISLATIVE AND/OR ADMINISTRATIVE
    23  RECOMMENDATIONS. THE COMMITTEES MAY HOLD SUCH MEETINGS AND
    24  HEARINGS AS THEY DEEM APPROPRIATE TO ACCOMPLISH THE PROVISIONS
    25  OF THIS SUBSECTION.]
    26     (E)  AS USED IN THIS SECTION "INDEPENDENT CERTIFIED PUBLIC
    27  ACCOUNTANT" MEANS A MEMBER OF THE AMERICAN INSTITUTE OF
    28  CERTIFIED PUBLIC ACCOUNTANTS THAT HAS A MINIMUM OF FIVE (5)
    29  YEARS VERIFIABLE EXPERIENCE IN PERFORMING AUDITS OF GOVERNMENT
    30  FUNDS FOR NONPROFIT ORGANIZATIONS WITH A COMPARABLE OR LARGER
    20030S0080B1341                 - 23 -     

     1  ANNUAL BUDGET.
     2     SECTION 12.  SECTION 1376.1 OF THE ACT, AMENDED JUNE 7, 1993
     3  (P.L.49, NO.16), IS AMENDED TO READ:
     4     SECTION 1376.1.  ACTUAL COST OF TUITION AND MAINTENANCE OF
     5  CERTAIN EXCEPTIONAL CHILDREN IN THE FOUR CHARTERED SCHOOLS FOR
     6  EDUCATION OF THE DEAF AND THE BLIND.--(A)  THE FOLLOWING TERM,
     7  WHENEVER USED OR REFERRED TO IN THIS SECTION, SHALL HAVE THE
     8  FOLLOWING MEANING. "CHARTERED SCHOOL" SHALL MEAN ANY OF THE FOUR
     9  (4) CHARTERED SCHOOLS FOR THE EDUCATION OF THE DEAF OR THE
    10  BLIND: THE PENNSYLVANIA SCHOOL FOR THE DEAF; THE OVERBROOK
    11  SCHOOL FOR THE BLIND; THE WESTERN PENNSYLVANIA SCHOOL FOR BLIND
    12  CHILDREN; AND THE WESTERN PENNSYLVANIA SCHOOL FOR THE DEAF.
    13     (B)  WHEN ANY CHILD OF SCHOOL AGE RESIDENT IN THIS
    14  COMMONWEALTH, WHO IS BLIND OR DEAF, IS ENROLLED WITH THE
    15  APPROVAL OF THE DEPARTMENT OF EDUCATION AS A PUPIL IN ANY OF THE
    16  FOUR (4) CHARTERED SCHOOLS IN ACCORDANCE WITH STANDARDS AND
    17  REGULATIONS PROMULGATED BY THE STATE BOARD OF EDUCATION, THE
    18  SCHOOL DISTRICT IN WHICH SUCH CHILD IS RESIDENT SHALL PAY THE
    19  GREATER OF EITHER TWENTY PERCENT (20%) OF THE ACTUAL COST OF
    20  TUITION AND MAINTENANCE OF SUCH CHILD IN SUCH INSTITUTION, AS
    21  DETERMINED BY THE DEPARTMENT OF EDUCATION; OR ITS "TUITION
    22  CHARGE PER ELEMENTARY PUPIL" OR ITS "TUITION CHARGE PER HIGH
    23  SCHOOL PUPIL," AND THE COMMONWEALTH SHALL PAY, OUT OF FUNDS
    24  APPROPRIATED TO THE DEPARTMENT FOR SPECIAL EDUCATION, THE
    25  BALANCE DUE FOR THE COSTS OF SUCH CHILD'S TUITION AND
    26  MAINTENANCE, AS DETERMINED BY THE DEPARTMENT. FOR THE SCHOOL
    27  YEARS 1989-90, 1990-91 AND 1991-92, THE SCHOOL DISTRICT PAYMENT
    28  SHALL BE NO GREATER THAN FORTY PERCENT (40%) OF THE ACTUAL
    29  AUDITED COSTS OF TUITION AND MAINTENANCE OF SUCH CHILD IN SUCH
    30  SCHOOL. FOR THE 1992-1993 SCHOOL YEAR AND EACH SCHOOL YEAR
    20030S0080B1341                 - 24 -     

     1  THEREAFTER, THE SCHOOL DISTRICT PAYMENT SHALL BE THE GREATER OF
     2  FORTY PERCENT (40%) OF THE ACTUAL AUDITED COSTS OF TUITION AND
     3  MAINTENANCE OF SUCH CHILD IN SUCH SCHOOL, AS DETERMINED BY THE
     4  DEPARTMENT OF EDUCATION, OR ITS "TUITION CHARGE PER ELEMENTARY
     5  PUPIL" OR ITS "TUITION CHARGE PER HIGH SCHOOL PUPIL," AND THE
     6  COMMONWEALTH SHALL PAY OUT OF FUNDS APPROPRIATED TO THE
     7  DEPARTMENT FOR CHARTERED SCHOOLS THE BALANCE DUE FOR THE COSTS
     8  OF SUCH CHILD'S TUITION AND MAINTENANCE, AS DETERMINED BY THE
     9  DEPARTMENT. THE DEPARTMENT WILL CREDIT THE DISTRICT OF RESIDENCE
    10  WITH AVERAGE DAILY MEMBERSHIP FOR SUCH CHILD CONSISTENT WITH THE
    11  RULES OF PROCEDURE DEVELOPED IN ACCORDANCE WITH SECTION 2501. IF
    12  THE RESIDENCE OF SUCH CHILD IN A PARTICULAR SCHOOL DISTRICT
    13  CANNOT BE DETERMINED, THE COMMONWEALTH SHALL PAY, OUT OF MONEYS
    14  APPROPRIATED TO THE DEPARTMENT FOR SPECIAL EDUCATION, THE WHOLE
    15  COST OF TUITION AND MAINTENANCE OF SUCH CHILD. [THE DEPARTMENT
    16  OF EDUCATION SHALL BE PROVIDED WITH SUCH FINANCIAL DATA FROM
    17  EACH OF THE CHARTERED SCHOOLS AS MAY BE NECESSARY TO DETERMINE
    18  THE REASONABLENESS OF CHARGES FOR TUITION AND ROOM AND BOARD OF
    19  EACH OF THE CHARTERED SCHOOLS MADE ON PENNSYLVANIA RESIDENT
    20  APPROVED STUDENTS. THE DEPARTMENT OF EDUCATION SHALL EVALUATE
    21  SUCH DATA AND SHALL DISALLOW ANY CHARGES DEEMED UNREASONABLE.
    22  ANY CHARGE DEEMED UNREASONABLE BY THE DEPARTMENT OF EDUCATION
    23  FOR DISALLOWANCE SHALL BE CONSIDERED AN ADJUDICATION WITHIN THE
    24  MEANING OF TITLE 2 OF THE PA.C.S. (RELATING TO ADMINISTRATIVE
    25  LAW AND PROCEDURE) AND REGULATIONS PROMULGATED THEREUNDER.]
    26     (C)  WHEN ANY PERSON LESS THAN SCHOOL AGE RESIDENT IN THIS
    27  COMMONWEALTH WHO IS BLIND OR DEAF IS ENROLLED, WITH THE APPROVAL
    28  OF THE DEPARTMENT OF EDUCATION, AS A RESIDENTIAL PUPIL IN ANY OF
    29  THE FOUR (4) CHARTERED SCHOOLS, THE COMMONWEALTH SHALL PAY TO
    30  THE SCHOOL, OUT OF MONEYS APPROPRIATED TO THE DEPARTMENT FOR
    20030S0080B1341                 - 25 -     

     1  SPECIAL EDUCATION, THE ACTUAL COST OF TUITION AND MAINTENANCE OF
     2  SUCH PERSON, AS DETERMINED BY THE DEPARTMENT OF EDUCATION,
     3  SUBJECT TO REVIEW AND APPROVAL IN ACCORDANCE WITH STANDARDS AND
     4  REGULATIONS PROMULGATED BY THE STATE BOARD OF EDUCATION IN
     5  ACCORDANCE WITH SUBSECTION (E), AND IN ADDITION, IN THE CASE OF
     6  ANY CHILD LESS THAN SCHOOL AGE, WHO IS BLIND, THE COST, AS
     7  DETERMINED BY THE DEPARTMENT OF EDUCATION OF INSTRUCTING THE
     8  PARENT OF SUCH BLIND CHILD IN CARING FOR SUCH CHILD.
     9     (D)  NONE OF THE CHARTERED SCHOOLS RECEIVING PAYMENT IN
    10  ACCORDANCE WITH THIS SECTION SHALL IMPOSE ANY CHARGE ON THE
    11  STUDENT AND/OR PARENTS WHO ARE APPROVED REIMBURSABLE RESIDENTS
    12  FOR A PROGRAM OF INSTRUCTION AND MAINTENANCE APPROPRIATE TO THE
    13  CHILD'S NEEDS; EXCEPT THAT CHARGES FOR PROGRAMS NOT PART OF THE
    14  NORMAL SCHOOL YEAR MAY BE MADE.
    15     (E)  FOR THE 2004-2005 SCHOOL YEAR AND EACH SCHOOL YEAR
    16  THEREAFTER, A CHARTERED SCHOOL SHALL SUBMIT TO THE DEPARTMENT OF
    17  EDUCATION SUCH INFORMATION AS THE DEPARTMENT OF EDUCATION MAY
    18  REASONABLY REQUIRE TO DETERMINE ITS BUDGETED COSTS FOR THE
    19  UPCOMING SCHOOL YEAR. BASED UPON THIS INFORMATION AND THE MOST
    20  RECENT SETTLED AUDIT, THE DEPARTMENT OF EDUCATION SHALL DEVELOP
    21  AN INTERIM REIMBURSEMENT RATE FOR THE CHARTERED SCHOOL. THE
    22  DEPARTMENT OF EDUCATION SHALL PROVIDE THE CHARTERED SCHOOL WITH
    23  MONTHLY PAYMENTS IN ADVANCE OF THE FINAL COST SETTLEMENT AS
    24  PROVIDED FOR IN SUBSECTION (F). THE DEPARTMENT OF EDUCATION
    25  SHALL ADOPT FINAL REIMBURSEMENT RATES BASED ON THE FINAL COST
    26  SETTLEMENT. THE DEPARTMENT OF EDUCATION MAY WITHHOLD A PORTION
    27  OF SUCH PAYMENTS NOT EXCEEDING FIVE PERCENT (5%) OF SUCH
    28  PAYMENTS, PENDING FINAL COST SETTLEMENT. IN NO EVENT SHALL
    29  EITHER THE PAYMENTS MADE IN ADVANCE OF THE FINAL COST SETTLEMENT
    30  OR FINAL REIMBURSEMENTS BASED ON THE FINAL COST SETTLEMENT MADE
    20030S0080B1341                 - 26 -     

     1  BY THE DEPARTMENT OF EDUCATION EXCEED THE APPROPRIATION
     2  AVAILABLE FOR CHARTERED SCHOOLS.
     3     (F)  BEGINNING WITH THE 2004-2005 SCHOOL YEAR AND EACH SCHOOL
     4  YEAR THEREAFTER, THE DEPARTMENT OF EDUCATION SHALL ESTABLISH
     5  PROCEDURES AND AUDIT STANDARDS TO GOVERN THE SCOPE OF REPORTABLE
     6  COSTS AND THE METHODS USED TO EXAMINE AND DETERMINE ALLOWABILITY
     7  OF COSTS. COST REPORTS SHALL BE PREPARED IN ACCORDANCE WITH
     8  ESTABLISHED PROCEDURES AND AUDIT STANDARDS AND SUBMITTED BY THE
     9  CHARTERED SCHOOL TO THE DEPARTMENT OF EDUCATION AFTER THE
    10  CONCLUSION OF THE SCHOOL YEAR. THE DEPARTMENT OF EDUCATION SHALL
    11  PROCESS THESE COST REPORTS AND SETTLE ANY OUTSTANDING PAYMENTS
    12  DUE TO OR FROM THE CHARTERED SCHOOL WITHIN ONE (1) YEAR OF THE
    13  COST REPORT SUBMISSION. IF THE COST REPORTS ARE SUBJECT TO ANY
    14  APPEALS OR POSTSETTLEMENT RESOLUTION, THE DEPARTMENT OF
    15  EDUCATION SHALL HAVE AN ADDITIONAL THREE (3) MONTHS TO SETTLE.
    16  AUDITS OF COST REPORTS SUBMITTED FOR SCHOOL YEARS PRIOR TO THE
    17  2004-2005 SCHOOL YEAR SHALL BE COMPLETED IN A MANNER CONSISTENT
    18  WITH PRIOR AUDIT PRACTICES. A CHARTERED SCHOOL MAY SUBMIT AN
    19  AUDIT PREPARED BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT
    20  PROVIDED THE FOLLOWING HAVE OCCURRED:
    21     (1)  THE DEPARTMENT OF EDUCATION HAS FAILED TO PROCESS AND
    22  SETTLE THE COST REPORTS WITHIN TWELVE (12) MONTHS FROM
    23  SUBMISSION BY THE CHARTERED SCHOOL.
    24     (2)  THE DEPARTMENT OF EDUCATION HAS FAILED TO SETTLE ANY
    25  APPEALS OR POSTSETTLEMENT RESOLUTION WITHIN FIFTEEN (15) MONTHS
    26  FROM SUBMISSION BY THE CHARTERED SCHOOL.
    27     (3)  THE CHARTERED SCHOOL HAS RESPONDED TO REASONABLE
    28  REQUESTS FOR INFORMATION AND DOCUMENTS BY THE DEPARTMENT OF
    29  EDUCATION.
    30  UPON RECEIPT OF THE INDEPENDENT AUDIT, THE DEPARTMENT OF
    20030S0080B1341                 - 27 -     

     1  EDUCATION SHALL HAVE THREE (3) MONTHS TO REVIEW THE AUDIT AND
     2  SETTLE ANY OUTSTANDING PAYMENTS DUE TO OR FROM THE CHARTERED
     3  SCHOOL.
     4     (G)  AS USED IN THIS SECTION, "INDEPENDENT CERTIFIED PUBLIC
     5  ACCOUNTANT" MEANS A MEMBER OF THE AMERICAN INSTITUTE OF
     6  CERTIFIED PUBLIC ACCOUNTANTS THAT HAS A MINIMUM OF FIVE (5)
     7  YEARS' VERIFIABLE EXPERIENCE IN PERFORMING AUDITS OF GOVERNMENT
     8  FUNDS FOR NONPROFIT ORGANIZATIONS WITH A COMPARABLE OR LARGER
     9  ANNUAL BUDGET.
    10     SECTION 13.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    11     SECTION 1550.  FIREFIGHTER AND EMERGENCY SERVICE TRAINING.--
    12  (A)  BEGINNING WITH THE 2003-2004 SCHOOL YEAR AND EACH SCHOOL
    13  YEAR THEREAFTER, A SCHOOL DISTRICT MAY OFFER FIREFIGHTER AND
    14  EMERGENCY SERVICE TRAINING AS CREDIT-EARNING COURSES TO STUDENTS
    15  OF THE AGE OF SIXTEEN (16) YEARS OR OLDER. SUCH COURSES MAY
    16  INCLUDE:
    17     (1)  TRAINING AS A FIREFIGHTER I FROM THE NATIONAL BOARD ON
    18  FIRE SERVICE PROFESSIONAL QUALIFICATIONS.
    19     (2)  TRAINING AS AN EMERGENCY MEDICAL TECHNICIAN BY THE
    20  DEPARTMENT OF HEALTH UNDER THE ACT OF JULY 3, 1985 (P.L.164,
    21  NO.45), KNOWN AS THE "EMERGENCY MEDICAL SERVICES ACT."
    22     (B)  A SCHOOL DISTRICT THAT OFFERS FIREFIGHTER AND EMERGENCY
    23  SERVICE TRAINING AS CREDIT-EARNING COURSES SHALL PROVIDE
    24  TRANSPORTATION TO AND SUPERVISION DURING ANY FIREFIGHTER AND
    25  EMERGENCY SERVICE TRAINING PROGRAM THAT TAKES PLACE OFF SCHOOL
    26  GROUNDS. SUPERVISION OF TRAINING SHALL BE CONDUCTED AS A
    27  COOPERATIVE EDUCATION PROGRAM IN ACCORDANCE WITH THE PROVISIONS
    28  OF 22 PA. CODE § 11.28 (RELATING TO OUT-OF-SCHOOL PROGRAMS).
    29     SECTION 14.  THE HEADING OF ARTICLE XV-C OF THE ACT, ADDED
    30  MAY 17, 2001 (P.L.4, NO.4), IS AMENDED TO READ:
    20030S0080B1341                 - 28 -     

     1                           ARTICLE XV-C.
     2       EDUCATION SUPPORT SERVICES [PROGRAM.] AND EDUCATIONAL
     3                        ASSISTANCE PROGRAMS.
     4     SECTION 15.  SECTION 1501-C OF THE ACT, AMENDED JUNE 29, 2002
     5  (P.L.524, NO.88), IS AMENDED TO READ:
     6  SECTION 1501-C.  DEFINITIONS.
     7     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
     8  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
     9  CONTEXT CLEARLY INDICATES OTHERWISE:
    10     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    11  COMMONWEALTH.
    12     "ELIGIBLE SCHOOL ENTITY."  FOR THE PURPOSES OF THE
    13  EDUCATIONAL ASSISTANCE PROGRAM OPERATED PURSUANT TO SECTIONS
    14  1502-C AND 1512-C, A SCHOOL ENTITY WITH ONE OR MORE SCHOOLS
    15  IDENTIFIED BY THE DEPARTMENT OF EDUCATION AS HAVING FAILED TO
    16  MEET ONE OR MORE ACADEMIC PERFORMANCE TARGETS.
    17     "ELIGIBLE STUDENT."  A RESIDENT OF THIS COMMONWEALTH WHO IS
    18  ENROLLED FULL TIME IN [THIRD, FOURTH, FIFTH OR SIXTH]
    19  KINDERGARTEN THROUGH NINTH GRADE IN A SCHOOL ENTITY AND IS
    20  DEEMED ELIGIBLE PURSUANT TO SECTION 1502-C(B) OR SECTION 1512-
    21  C(B).
    22     "ELIGIBILITY TEST."  THE PENNSYLVANIA SYSTEM OF SCHOOL
    23  ASSESSMENT OR A COMMERCIALLY PREPARED, STANDARDIZED ACHIEVEMENT
    24  TEST APPROVED BY THE DEPARTMENT OF EDUCATION. A LIST OF APPROVED
    25  TESTS UNDER THIS ARTICLE SHALL BE PUBLISHED ANNUALLY IN THE
    26  PENNSYLVANIA BULLETIN.
    27     "GRANT."  A GRANT AWARDED TO A GRANT RECIPIENT UNDER THIS
    28  ARTICLE.
    29     "GRANT RECIPIENT."  A RESIDENT OF THIS COMMONWEALTH WHO IS A
    30  PARENT, GUARDIAN OR PERSON IN PARENTAL RELATION TO AN ELIGIBLE
    20030S0080B1341                 - 29 -     

     1  STUDENT.
     2     ["PROGRAM."  THE EDUCATION SUPPORT SERVICES PROGRAM
     3  ESTABLISHED IN SECTION 1502-C.]
     4     "PROVIDER."  A SCHOOL ENTITY, AN INSTITUTION OF HIGHER
     5  EDUCATION, A NONPROFIT OR FOR-PROFIT ORGANIZATION OR A CERTIFIED
     6  TEACHER EMPLOYED BY A SCHOOL ENTITY, THAT IS APPROVED BY THE
     7  DEPARTMENT OF EDUCATION TO PROVIDE EDUCATION SUPPORT SERVICES OR
     8  TUTORING UNDER THE EDUCATIONAL ASSISTANCE PROGRAM.
     9     ["SCHOOL ENTITY."  ANY OF THE FOLLOWING LOCATED IN THIS
    10  COMMONWEALTH: A SCHOOL DISTRICT, INTERMEDIATE UNIT, JOINT SCHOOL
    11  DISTRICT, AREA VOCATIONAL-TECHNICAL SCHOOL, CHARTER SCHOOL,
    12  INDEPENDENT SCHOOL, LICENSED PRIVATE ACADEMIC SCHOOL, ACCREDITED
    13  SCHOOL, A SCHOOL REGISTERED UNDER SECTION 1327(B), THE SCOTLAND
    14  SCHOOL FOR VETERANS' CHILDREN OR THE SCRANTON SCHOOL FOR THE
    15  DEAF.]
    16     "SCHOOL ENTITY."  SHALL MEAN:
    17         (1)  FOR PURPOSES OF THE EDUCATIONAL SUPPORT SERVICES
    18     PROGRAM, ANY OF THE FOLLOWING LOCATED IN THIS COMMONWEALTH; A
    19     SCHOOL DISTRICT, INTERMEDIATE UNIT, JOINT SCHOOL DISTRICT,
    20     AREA VOCATIONAL-TECHNICAL SCHOOL, CHARTER SCHOOL, INDEPENDENT
    21     SCHOOL, LICENSED PRIVATE ACADEMIC SCHOOL, ACCREDITED SCHOOL,
    22     A SCHOOL REGISTERED UNDER SECTION 1327(B), THE SCOTLAND
    23     SCHOOL FOR VETERANS' CHILDREN OR THE SCRANTON SCHOOL FOR THE
    24     DEAF.
    25         (2)  FOR PURPOSES OF THE EDUCATIONAL ASSISTANCE PROGRAM
    26     ESTABLISHED IN SECTION 1502-C, ANY OF THE FOLLOWING LOCATED
    27     IN THIS COMMONWEALTH; A SCHOOL DISTRICT, JOINT SCHOOL
    28     DISTRICT, AREA VOCATIONAL-TECHNICAL SCHOOL OR INDEPENDENT
    29     SCHOOL.
    30     SECTION 16.  SECTIONS 1502-C, 1503-C AND 1504-C OF THE ACT,
    20030S0080B1341                 - 30 -     

     1  ADDED MAY 17, 2001 (P.L.4, NO.4), ARE AMENDED TO READ:
     2  SECTION 1502-C.  ESTABLISHMENT OF [PROGRAM] PROGRAMS.
     3     (A)  ESTABLISHMENT.--THE EDUCATION SUPPORT SERVICES PROGRAM
     4  [IS] AND EDUCATIONAL ASSISTANCE PROGRAM ARE ESTABLISHED WITHIN
     5  THE DEPARTMENT TO PROVIDE INDIVIDUAL OR SMALL GROUP INSTRUCTION
     6  IN [READING AND MATHEMATICS] THOSE SUBJECT AREAS ASSESSED
     7  THROUGH A PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TEST AND
     8  REQUIRED UNDER THE NO CHILD LEFT BEHIND ACT OF 2001 TO
     9  STRENGTHEN THE SKILLS THAT AN ELIGIBLE STUDENT NEEDS TO ACHIEVE
    10  THE STANDARDS IN 22 PA. CODE CH. 4 (RELATING TO ACADEMIC
    11  STANDARDS AND ASSESSMENT), WHICH SHALL BE PROVIDED AT A TIME
    12  OTHER THAN THE REGULARLY SCHEDULED SCHOOL HOURS.
    13     (B)  ELIGIBILITY.--THE DEPARTMENT SHALL UTILIZE THE
    14  PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TEST OR OTHER TEST
    15  RESULTS TO IDENTIFY ELIGIBLE STUDENTS UNDER THIS ARTICLE. SCORES
    16  USED TO DETERMINE ELIGIBLE STUDENTS IN EACH GRADE SHALL BE
    17  PUBLISHED ANNUALLY IN THE PENNSYLVANIA BULLETIN.
    18     (C)  APPROVAL.--A PROVIDER MUST BE APPROVED BY THE DEPARTMENT
    19  IN ORDER TO PROVIDE EDUCATION SUPPORT SERVICES OR TUTORING UNDER
    20  THE EDUCATIONAL ASSISTANCE PROGRAM UNDER THIS ARTICLE.
    21  SECTION 1503-C.  [APPLICATION] EDUCATION SUPPORT SERVICES GRANT
    22                     APPLICATION AND APPROVAL.
    23     (A)  APPLICATION.--A PROSPECTIVE GRANT RECIPIENT SHALL APPLY
    24  ANNUALLY TO THE DEPARTMENT FOR A GRANT TO PURCHASE EDUCATION
    25  SUPPORT SERVICES FOR AN ELIGIBLE STUDENT FROM AN APPROVED
    26  PROVIDER IN A TIME AND MANNER PRESCRIBED BY THE DEPARTMENT.
    27     (B)  REQUIRED INFORMATION.--AN APPLICATION SUBMITTED UNDER
    28  THIS SECTION SHALL INCLUDE VERIFICATION OF THE ELIGIBILITY TEST
    29  RESULTS AND SUCH OTHER INFORMATION AS THE DEPARTMENT MAY
    30  REQUIRE.
    20030S0080B1341                 - 31 -     

     1  SECTION 1504-C.  POWERS AND DUTIES OF THE DEPARTMENT.
     2     THE DEPARTMENT SHALL:
     3         (1)  ESTABLISH CRITERIA TO ANNUALLY IDENTIFY ELIGIBLE
     4     STUDENTS [IN GRADES THREE, FOUR, FIVE AND SIX TO PARTICIPATE
     5     IN THE PROGRAM UNDER SECTION 1502-C].
     6         (2)  APPROVE PROVIDERS [OF EDUCATION SUPPORT SERVICES].
     7         (3)  ADOPT STANDARDS, PROCEDURES AND GUIDELINES TO BE
     8     USED TO APPROVE PROVIDERS [OF EDUCATION SUPPORT SERVICES
     9     UNDER THIS ARTICLE].
    10         (4)  AWARD GRANTS TO A GRANT RECIPIENT IN AN AMOUNT NOT
    11     TO EXCEED $500 PER FISCAL YEAR FOR EACH ELIGIBLE STUDENT.
    12         (5)  ESTABLISH MINIMUM QUALIFICATIONS FOR INDIVIDUALS
    13     UTILIZED BY PROVIDERS OF EDUCATION SUPPORT SERVICES.
    14         (6)  ESTABLISH PERIODS DURING WHICH APPLICATIONS WILL BE
    15     REVIEWED TO ACCOMMODATE THE DATES WHEN RESULTS OF APPROVED
    16     ELIGIBILITY TESTS BECOME AVAILABLE.
    17         (7)  ASSESS PROVIDERS ON AN ANNUAL BASIS TO DETERMINE THE
    18     ACADEMIC PROGRESS OF STUDENTS WHO RECEIVE INSTRUCTION UNDER
    19     THIS ARTICLE.
    20         (8)  PROVIDE EDUCATIONAL ASSISTANCE FUNDING TO SCHOOL
    21     ENTITIES PURSUANT TO SECTION 1512-C.
    22     SECTION 17.  SECTION 1505-C OF THE ACT, AMENDED JUNE 29, 2002
    23  (P.L.524, NO.88), IS AMENDED TO READ:
    24  SECTION 1505-C.  PROVIDERS.
    25     (A)  APPLICATION.--A PROSPECTIVE PROVIDER SHALL SUBMIT AN
    26  APPLICATION TO THE DEPARTMENT FOR APPROVAL TO PROVIDE EDUCATION
    27  SUPPORT SERVICES OR TUTORING UNDER THE EDUCATIONAL ASSISTANCE
    28  PROGRAM UNDER THIS ARTICLE. THE APPLICATION SHALL INCLUDE A
    29  DESCRIPTION OF THE SERVICES TO BE PROVIDED, A DESCRIPTION OF THE
    30  CURRICULUM TO BE USED, THE COST OF THE SERVICES, THE
    20030S0080B1341                 - 32 -     

     1  QUALIFICATION OF ALL INDIVIDUALS PROVIDING THOSE SERVICES,
     2  INCLUDING EVIDENCE OF COMPLIANCE WITH SECTION 111 AND WITH 23
     3  PA.C.S. § 6355 (RELATING TO REQUIREMENT), A DESCRIPTION OF AN
     4  ASSESSMENT MECHANISM TO BE USED TO DETERMINE THE ACADEMIC
     5  PROGRESS OF STUDENTS WHO RECEIVE TUTORING SERVICES, AND SUCH
     6  OTHER INFORMATION AS MAY BE REQUIRED BY THE DEPARTMENT.
     7     (B)  REVOCATION OF APPROVAL.--THE DEPARTMENT SHALL REVOKE THE
     8  APPROVAL OF ANY PROVIDER FOR WHICH THE ANNUAL ASSESSMENTS
     9  REQUIRED UNDER SECTION 1504-C(7) DEMONSTRATE THAT 20% OR MORE OF
    10  THE STUDENTS FOR WHOM THE PROVIDER HAS PROVIDED EDUCATION
    11  SUPPORT SERVICES UNDER SECTION 1507-C OR TUTORING SERVICES UNDER
    12  SECTION 1512-C FAILED TO MAKE ACADEMIC PROGRESS FOR TWO
    13  CONSECUTIVE YEARS.
    14     SECTION 18.  SECTIONS 1506-C, 1507-C HEADING AND 1508-C(A) OF
    15  THE ACT, ADDED MAY 17, 2001 (P.L.4, NO.4), ARE AMENDED TO READ:
    16  SECTION 1506-C.  NOTIFICATION OF PROGRAM.
    17     A SCHOOL ENTITY IN THIS COMMONWEALTH [WITH STUDENTS ENROLLED
    18  IN THIRD, FOURTH, FIFTH OR SIXTH GRADE] SHALL NOTIFY PARENTS OF
    19  THE AVAILABILITY OF EDUCATION SUPPORT SERVICES AND TUTORING
    20  UNDER THE EDUCATIONAL ASSISTANCE PROGRAM AT SUCH TIME AS THE
    21  PARENTS RECEIVE THE RESULTS OF ANY ELIGIBILITY TEST.
    22  SECTION 1507-C.  PAYMENT OF EDUCATIONAL SUPPORT SERVICES GRANTS.
    23     * * *
    24  SECTION 1508-C.  LIMITATIONS.
    25     (A)  AMOUNT.--THE AMOUNT OF EDUCATIONAL SUPPORT SERVICES
    26  GRANTS PROVIDED UNDER THIS ARTICLE IN A FISCAL YEAR SHALL BE
    27  LIMITED TO THE FUNDS APPROPRIATED FOR THAT PURPOSE. NO MORE THAN
    28  10% OF THE TOTAL FUNDS APPROPRIATED FOR THIS PROGRAM IN ANY
    29  FISCAL YEAR SHALL BE AWARDED TO GRANT RECIPIENTS WITHIN A
    30  SPECIFIC SCHOOL DISTRICT EXCEPT THAT, IF THE DEPARTMENT
    20030S0080B1341                 - 33 -     

     1  DETERMINES THAT ALL SCHOOL ENTITIES IN THE COMMONWEALTH HAVE HAD
     2  AN OPPORTUNITY TO PARTICIPATE IN THE PROGRAM AND THAT FUNDS
     3  REMAIN AVAILABLE, IT MAY WAIVE THE 10% LIMITATION UNDER THIS
     4  SUBSECTION.
     5     * * *
     6     SECTION 19.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
     7  SECTION 1512-C.  EDUCATIONAL ASSISTANCE PROGRAM.
     8     (A)  PURPOSE.--THE EDUCATIONAL ASSISTANCE PROGRAM SHALL
     9  PROVIDE, FOR THE SUPPORT OF TUTORING SERVICES TO ELIGIBLE
    10  STUDENTS, FUNDS TO ELIGIBLE SCHOOL ENTITIES IN WHICH ONE OR MORE
    11  SCHOOLS HAVE FAILED TO MEET AT LEAST ONE ACADEMIC PERFORMANCE
    12  TARGET.
    13     (B)  ELIGIBILITY.--A STUDENT SHALL BE ELIGIBLE FOR TUTORING
    14  SERVICES UNDER THIS SECTION WHERE SUCH STUDENT IS ENROLLED FULL
    15  TIME IN AN ELIGIBLE SCHOOL ENTITY AND:
    16         (1)  SCORED BELOW PROFICIENT ON A PENNSYLVANIA SYSTEM OF
    17     SCHOOL ASSESSMENT TEST IN A SUBJECT AREA REQUIRED UNDER THE
    18     NO CHILD LEFT BEHIND ACT OF 2001 IN THE IMMEDIATE PRECEDING
    19     SCHOOL YEAR; OR
    20         (2)  IS ENROLLED IN KINDERGARTEN THROUGH THIRD GRADE AND
    21     SCORED BELOW THE SCORE APPROVED BY THE DEPARTMENT UNDER
    22     SECTION 1502-C(B) ON ANY OTHER ELIGIBILITY TEST.
    23     (C)  APPROVAL OF PROVIDERS.--IN ORDER TO PROVIDE TUTORING
    24  SERVICES THROUGH THE EDUCATIONAL ASSISTANCE PROGRAM, A PROVIDER
    25  MUST BE APPROVED BY THE DEPARTMENT. SUCH PROVIDERS MAY INCLUDE:
    26         (1)  A PROVIDER APPROVED UNDER SECTION 1505-C; OR
    27         (2)  A SCHOOL ENTITY.
    28     (D)  DUTIES OF ELIGIBLE SCHOOL ENTITIES.--AN ELIGIBLE SCHOOL
    29  ENTITY SHALL HAVE THE FOLLOWING DUTIES:
    30         (1)  TO ANNUALLY NOTIFY THE PARENTS OR GUARDIAN OF ANY
    20030S0080B1341                 - 34 -     

     1     STUDENT ELIGIBLE FOR TUTORING SERVICES UNDER SUBSECTION (B)
     2     ABOUT THE AVAILABILITY OF TUTORING SERVICES UNDER THIS
     3     SECTION.
     4         (2)  TO ANNUALLY PROVIDE THE PARENTS OR GUARDIAN OF ANY
     5     STUDENT ELIGIBLE FOR TUTORING SERVICES UNDER SUBSECTION (B)
     6     WITH A LIST OF ALL APPROVED PROVIDERS OPERATING WITHIN THE
     7     BOUNDARIES OF OR AROUND THE ELIGIBLE SCHOOL ENTITY.
     8         (3)  UPON REQUEST, TO ASSIST THE PARENTS OR GUARDIAN OF
     9     ANY STUDENT ELIGIBLE FOR TUTORING SERVICES UNDER SUBSECTION
    10     (B) IN SELECTING AN APPROVED PROVIDER.
    11         (4)  TO ENTER INTO A CONTRACT OR CONTRACTS WITH A
    12     PROVIDER APPROVED UNDER SECTION 1505-C AND OPERATING WITHIN
    13     THE BOUNDARIES OF OR AROUND THE ELIGIBLE SCHOOL ENTITY OR TO
    14     OFFER TUTORING SERVICES DIRECTLY TO ANY STUDENT ELIGIBLE FOR
    15     TUTORING SERVICES UNDER SUBSECTION (B).
    16     (E)  TUTORING SERVICES.--TUTORING SERVICES PROVIDED UNDER
    17  THIS SECTION SHALL INCLUDE INTENSIVE INSTRUCTION IN THOSE
    18  SUBJECT AREAS ASSESSED THROUGH A PENNSYLVANIA SYSTEM OF SCHOOL
    19  ASSESSMENT TEST AND REQUIRED UNDER THE NO CHILD LEFT BEHIND ACT
    20  OF 2001. SUCH TUTORING SERVICES MAY:
    21         (1)  NOTWITHSTANDING THE PROVISIONS OF SECTION 1502, BE
    22     PROVIDED OUTSIDE OF THE NORMAL SCHOOL DAY AND HOURS OF THE
    23     SCHOOL ENTITY, INCLUDING MORNINGS, EVENINGS, WEEKENDS AND
    24     DURING THE SUMMER MONTHS.
    25         (2)  TAKE PLACE ON AN INDIVIDUAL OR SMALL GROUP BASIS;
    26     PROVIDED, THAT TUTORING SERVICES MAY BE PROVIDED TO NO MORE
    27     THAN TEN STUDENTS IN A GIVEN CLASS AT A GIVEN TIME DURING THE
    28     SCHOOL TERM AND NO MORE THAN 15 STUDENTS DURING THE SUMMER
    29     MONTHS.
    30     (F)  DUTIES OF DEPARTMENT.--THE DEPARTMENT SHALL HAVE THE
    20030S0080B1341                 - 35 -     

     1  FOLLOWING DUTIES:
     2         (1)  TO PROVIDE ELIGIBLE SCHOOL ENTITIES THAT PROVIDE
     3     TUTORING SERVICES UNDER THIS SECTION WITH TECHNICAL
     4     ASSISTANCE UPON REQUEST.
     5         (2)  TO ANNUALLY ASSESS ANY PROVIDER OR SCHOOL ENTITY
     6     THAT PROVIDES TUTORING SERVICES UNDER THIS SECTION IN ORDER
     7     TO DETERMINE THE ACADEMIC PROGRESS OF STUDENTS WHO RECEIVE
     8     TUTORING SERVICES.
     9     (G)  EDUCATIONAL ASSISTANCE FUNDING.--
    10         (1)  DURING THE 2003-2004 AND 2004-2005 SCHOOL YEARS, THE
    11     DEPARTMENT SHALL PROVIDE EACH ELIGIBLE SCHOOL ENTITY WITH
    12     EDUCATIONAL ASSISTANCE FUNDING CALCULATED BY:
    13             (I)  DIVIDING THE NUMBER OF PENNSYLVANIA SYSTEM OF
    14         SCHOOL ASSESSMENT TESTS ADMINISTERED IN THE ELIGIBLE
    15         SCHOOL ENTITY ON WHICH STUDENTS SCORED BELOW PROFICIENT
    16         IN READING OR MATHEMATICS BY THE TOTAL NUMBER OF
    17         PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TESTS
    18         ADMINISTERED IN THE ELIGIBLE SCHOOL ENTITY IN READING AND
    19         MATHEMATICS DURING THE IMMEDIATE PRECEDING SCHOOL YEAR.
    20             (II)  MULTIPLYING THE QUOTIENT FROM SUBPARAGRAPH (I)
    21         BY THE AVERAGE DAILY MEMBERSHIP OF THE ELIGIBLE SCHOOL
    22         ENTITY DURING THE IMMEDIATE PRECEDING SCHOOL YEAR.
    23             (III)  MULTIPLYING THE PRODUCT FROM SUBPARAGRAPH (II)
    24         BY THE DOLLAR VALUE OF FUNDS APPROPRIATED TO THE
    25         DEPARTMENT OF EDUCATION FOR THE EDUCATIONAL ASSISTANCE
    26         PROGRAM.
    27             (IV)  DIVIDING THE PRODUCT FROM SUBPARAGRAPH (III) BY
    28         THE SUM OF THE PRODUCTS OF SUBPARAGRAPH (II) FOR ALL
    29         ELIGIBLE SCHOOL ENTITIES THAT QUALIFY FOR GRANT FUNDS
    30         UNDER THIS SUBSECTION.
    20030S0080B1341                 - 36 -     

     1         (2)  THE AMOUNT OF EDUCATIONAL ASSISTANCE FUNDING
     2     PROVIDED UNDER THIS ARTICLE SHALL BE LIMITED TO FUNDS
     3     APPROPRIATED FOR THIS PURPOSE.
     4     (H)  USE OF EDUCATIONAL ASSISTANCE FUNDS.--AN ELIGIBLE SCHOOL
     5  ENTITY THAT RECEIVES EDUCATIONAL ASSISTANCE FUNDING UNDER
     6  SUBSECTION (G) MAY USE SUCH FUNDS TO:
     7         (1)  ENTER INTO CONTRACTS WITH A PROVIDER APPROVED UNDER
     8     SECTION 1505-C.
     9         (2)  OFFER TUTORING SERVICES DIRECTLY TO ANY STUDENT
    10     ELIGIBLE FOR TUTORING SERVICES UNDER SUBSECTION (B).
    11     (I)  CONSTRUCTION.--NOTHING IN THIS SECTION SHALL BE
    12  CONSTRUED TO LIMIT THE ELIGIBILITY OF A GRANT RECIPIENT TO
    13  RECEIVE A GRANT UNDER SECTION 1507-C.
    14     SECTION 20.  THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
    15                            ARTICLE XV-D
    16            HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM 
    17  SECTION 1501-D.  DEFINITIONS.
    18     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    19  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    20  CONTEXT CLEARLY INDICATES OTHERWISE:
    21     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    22  COMMONWEALTH.
    23     "EXTENDED DAY SERVICES."  HEAD START AND CHILD-CARE SERVICES
    24  PROVIDED TO CHILDREN ELIGIBLE FOR HEAD START BY A HEAD START
    25  PROVIDER OR THROUGH A COLLABORATIVE AGREEMENT BETWEEN A HEAD
    26  START PROVIDER AND A LICENSED CHILD-CARE CENTER, OR A REGISTERED
    27  FAMILY OR GROUP DAY-CARE HOME FOR THOSE HOURS AND DAYS BEYOND
    28  THE HOURS FUNDED THROUGH THE FEDERAL HEAD START PROGRAM.
    29     "HEAD START."  A PROGRAM FUNDED UNDER THE FEDERAL HEAD START
    30  ACT ESTABLISHED BY THE OMNIBUS BUDGET RECONCILIATION ACT OF 1981
    20030S0080B1341                 - 37 -     

     1  (PUBLIC LAW 97-35, 95 STAT. 357) AND CARRIED OUT BY A HEAD START
     2  AGENCY OR DELEGATE AGENCY THAT PROVIDES ONGOING COMPREHENSIVE
     3  CHILD DEVELOPMENT SERVICES.
     4     "PROGRAM."  THE HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM
     5  ESTABLISHED IN SECTION 1502-D.
     6  SECTION 1502-D.  HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM.
     7     (A)  ESTABLISHMENT.--THE HEAD START SUPPLEMENTAL ASSISTANCE
     8  PROGRAM IS HEREBY ESTABLISHED TO PROVIDE HEAD START SERVICES TO
     9  ADDITIONAL ELIGIBLE CHILDREN AND TO PROVIDE EXTENDED DAY
    10  SERVICES THROUGH EXISTING HEAD START PROVIDERS.
    11     (B)  ADMINISTRATION.--THE DEPARTMENT SHALL ADMINISTER THE
    12  PROGRAM, CONSISTENT WITH FEDERAL HEAD START GUIDELINES. DURING
    13  THE 2004-2005 FISCAL YEAR, THE DEPARTMENT SHALL PROVIDE
    14  SUPPLEMENTAL FINANCIAL ASSISTANCE TO EXISTING PROVIDERS OF
    15  FEDERAL HEAD START SERVICES.
    16     (C)  COORDINATION.--THE DEPARTMENT, TO EVERY EXTENT POSSIBLE,
    17  SHALL COORDINATE THE ADMINISTRATION OF THE PROGRAM WITH THE
    18  DEPARTMENT OF PUBLIC WELFARE AND THE DEPARTMENT OF HEALTH. THE
    19  PURPOSE OF THIS COORDINATION SHALL BE TO:
    20         (1)  IDENTIFY EDUCATIONAL, CHILD-CARE OR OTHER SERVICES
    21     UNDER THE JURISDICTION OF THE DEPARTMENT OF PUBLIC WELFARE
    22     AND THE DEPARTMENT OF HEALTH THAT CAN AUGMENT OR IMPROVE THE
    23     SERVICES AVAILABLE THROUGH HEAD START PROVIDERS.
    24         (2)  PROVIDE TECHNICAL ASSISTANCE TO HEAD START PROVIDERS
    25     ESTABLISHING CHILD-CARE SERVICES IN ORDER TO OFFER EXTENDED
    26     DAY SERVICES.
    27         (3)  PROVIDE TECHNICAL ASSISTANCE TO HEAD START
    28     PROVIDERS, LICENSED CHILD-CARE CENTERS OR REGISTERED FAMILY
    29     OR GROUP DAY-CARE HOMES ENTERING INTO COLLABORATIVE
    30     AGREEMENTS IN ORDER TO OFFER EXTENDED DAY SERVICES.
    20030S0080B1341                 - 38 -     

     1     (D)  CRITERIA FOR FUNDING.--TO IMPLEMENT THE PROGRAM, THE
     2  DEPARTMENT SHALL REQUEST PROPOSALS FROM EXISTING HEAD START
     3  PROVIDERS AND MAY AWARD GRANTS OR ENTER INTO SERVICE CONTRACTS
     4  WITH EXISTING HEAD START PROVIDERS THAT MEET ALL OF THE
     5  FOLLOWING CRITERIA:
     6         (1)  DEMONSTRATE THE NEED FOR ADDITIONAL HEAD START
     7     SERVICES IN THE PROVIDER'S SERVICE AREA, WHETHER THE NEED IS
     8     DETERMINED BY THE PERCENTAGE OF ELIGIBLE CHILDREN WHO ARE NOT
     9     SERVED IN THE PROVIDER'S SERVICE AREA OR BY THE DEMAND FOR
    10     EXTENDED DAY SERVICES.
    11         (2)  DEMONSTRATE THE ABILITY TO EXPAND STAFF, SPACE OR
    12     SERVICES EITHER:
    13             (I)  WITHIN THE HEAD START PROGRAM; OR
    14             (II)  IN COOPERATION WITH LICENSED CHILD-CARE CENTERS
    15         OR REGISTERED FAMILY OR GROUP DAY-CARE HOMES
    16     TO SERVE ADDITIONAL CHILDREN OR TO PROVIDE EXTENDED DAY
    17     SERVICES.
    18         (3)  DEMONSTRATE THE ABILITY TO COMPLY WITH FEDERAL AND
    19     STATE REQUIREMENTS FOR CHILD-CARE SERVICE PROVIDERS IF THE
    20     HEAD START PROVIDER INTENDS TO PROVIDE EXTENDED DAY SERVICES.
    21         (4)  DEMONSTRATE THE ABILITY TO ENTER INTO A
    22     COLLABORATIVE AGREEMENT WITH A CHILD-CARE SERVICE PROVIDER IF
    23     THE HEAD START PROVIDER INTENDS TO ENTER INTO A COLLABORATIVE
    24     AGREEMENT WITH A LICENSED CHILD-CARE CENTER OR A REGISTERED
    25     FAMILY OR GROUP DAY-CARE HOME TO OFFER EXTENDED DAY SERVICES.
    26  SECTION 1503-D.  PRIORITY IN FUNDING.
    27     THE DEPARTMENT SHALL GIVE PRIORITY IN FUNDING TO HEAD START
    28  PROVIDERS APPLYING FOR GRANTS TO SERVE ADDITIONAL ELIGIBLE
    29  CHILDREN.
    30  SECTION 1504-D.  ANNUAL REPORT.
    20030S0080B1341                 - 39 -     

     1     THE DEPARTMENT SHALL COMPILE AN ANNUAL REPORT ON THE PROGRAM
     2  FOR SUBMISSION TO THE GOVERNOR, THE CHAIRMEN OF THE
     3  APPROPRIATIONS COMMITTEE AND THE EDUCATION COMMITTEE OF THE
     4  SENATE AND THE CHAIRMEN OF THE APPROPRIATIONS COMMITTEE AND
     5  EDUCATION COMMITTEE OF THE HOUSE OF REPRESENTATIVES. THE REPORT
     6  SHALL INCLUDE:
     7         (1)  THE NUMBER OF ELIGIBLE CHILDREN SERVED BY HEAD START
     8     AS OF THE EFFECTIVE DATE OF THIS ARTICLE.
     9         (2)  THE NUMBER OF ELIGIBLE CHILDREN SERVED BY THE
    10     PROGRAM DURING THE SCHOOL YEAR THAT BEGINS ONE YEAR AFTER THE
    11     EFFECTIVE DATE OF THIS ARTICLE AND EACH YEAR THEREAFTER.
    12         (3)  THE NUMBER OF EXTENDED DAY PROGRAMS AND THE NUMBER
    13     OF ELIGIBLE CHILDREN ENROLLED IN EXTENDED DAY PROGRAMS AS OF
    14     THE EFFECTIVE DATE OF THIS ARTICLE.
    15         (4)  THE NUMBER OF EXTENDED DAY PROGRAMS AND THE NUMBER
    16     OF ELIGIBLE CHILDREN ENROLLED IN EXTENDED DAY PROGRAMS DURING
    17     THE SCHOOL YEAR THAT BEGINS ONE YEAR AFTER THE EFFECTIVE DATE
    18     OF THIS ARTICLE AND EACH YEAR THEREAFTER.
    19         (5)  A SUMMARY OF THE TYPES OF ACTIVITIES FUNDED UNDER
    20     THE PROGRAM.
    21  SECTION 1505-D.  HEAD START EXPANSION.
    22     (A)  GENERAL RULE.--THE DEPARTMENT OF PUBLIC WELFARE SHALL,
    23  WITHIN 90 DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, PROMULGATE
    24  REGULATIONS NECESSARY TO ASSURE ELIGIBILITY FOR THE CHILD CARE
    25  SUBSIDY FOR CHILDREN ENROLLED IN HEAD START WHOSE PARENTS NEED
    26  EXTENDED HOURS OF HEAD START SERVICES IN ORDER TO WORK. DURING
    27  THE TIME PERIOD OF THE CHILD'S ENROLLMENT IN HEAD START, THE
    28  CHILD SHALL REMAIN ELIGIBLE FOR THE CHILD CARE SUBSIDY.
    29  REGULATIONS PROMULGATED UNDER THIS SECTION SHALL PERMIT THE USE
    30  OF CHILD CARE SUBSIDY FUNDS TO SUPPORT FULL-DAY FULL-YEAR
    20030S0080B1341                 - 40 -     

     1  OPPORTUNITIES FOR HEAD START PARTICIPANTS.
     2     (B)  FINAL-OMITTED REGULATIONS.--THE DEPARTMENT OF PUBLIC
     3  WELFARE, IN ADOPTING SUCH REVISED REGULATIONS, SHALL FOLLOW THE
     4  PROCEDURES SET FORTH IN THE ACT OF JULY 31, 1968 (P.L.769,
     5  NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW, AND THE
     6  ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY
     7  REVIEW ACT, FOR THE PROMULGATION AND REVIEW OF FINAL-OMITTED
     8  REGULATIONS.
     9  SECTION 1506-D.  STANDARDS.
    10     THE DEPARTMENT MAY PROMULGATE ANY STANDARDS NECESSARY TO
    11  ADMINISTER AND ENFORCE THIS ARTICLE.
    12     SECTION 21.  SECTION 1702-B OF THE ACT, ADDED MAY 10, 2000
    13  (P.L.44, NO.16), ARE AMENDED BY ADDING A DEFINITION TO READ:
    14     SECTION 1702-B.  DEFINITIONS.--FOR PURPOSES OF THIS ARTICLE,
    15  THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
    16     * * *
    17     "HISTORY OF FINANCIAL DISTRESS."  A SCHOOL DISTRICT FOR
    18  WHICH: THE MARKET VALUE/INCOME AID RATIO FOR THE SCHOOL YEAR OF
    19  PLACEMENT ON THE EDUCATION EMPOWERMENT LIST IS EQUAL TO OR
    20  GREATER THAN SIX-THOUSAND EIGHT HUNDRED SEVEN TEN THOUSANDTHS
    21  (0.6807); THE PERSONAL INCOME VALUATION FOR THE SCHOOL YEAR OF
    22  PLACEMENT ON THE EDUCATION EMPOWERMENT LIST WHEN DIVIDED BY THE
    23  SCHOOL DISTRICT'S AVERAGE DAILY MEMBERSHIP FOR THE SCHOOL YEAR
    24  PRIOR TO THE SCHOOL YEAR OF PLACEMENT ON THE EDUCATION
    25  EMPOWERMENT LIST IS LESS THAN OR EQUAL TO SIXTY THOUSAND DOLLARS
    26  ($60,000); THE BASIC EDUCATION FUNDING ALLOCATION FOR THE SECOND
    27  SCHOOL YEAR PRIOR TO THE SCHOOL YEAR OF PLACEMENT ON THE
    28  EDUCATION EMPOWERMENT LIST WHEN DIVIDED BY THE ACTUAL
    29  INSTRUCTION EXPENSE FOR THE SECOND SCHOOL YEAR PRIOR TO THE
    30  SCHOOL YEAR OF PLACEMENT ON THE EDUCATION EMPOWERMENT LIST IS
    20030S0080B1341                 - 41 -     

     1  EQUAL TO OR GREATER THAN SIXTY-FIVE HUNDREDTHS (0.65); AND THE
     2  AVERAGE DAILY MEMBERSHIP FOR THE SCHOOL YEAR PRIOR TO THE SCHOOL
     3  YEAR OF PLACEMENT ON THE EDUCATION EMPOWERMENT LIST IS EQUAL TO
     4  OR GREATER THAN FIVE THOUSAND (5,000).
     5     * * *
     6     SECTION 22.  SECTION 1703-B(A) AND (E) OF THE ACT, AMENDED
     7  NOVEMBER 22, 2000 (P.L.672, NO.91), ARE AMENDED AND THE SECTION
     8  IS AMENDED BY ADDING A SUBSECTION TO READ:
     9     SECTION 1703-B.  EDUCATION EMPOWERMENT LIST.--(A)  THE
    10  DEPARTMENT SHALL PLACE A SCHOOL DISTRICT THAT HAS A HISTORY OF
    11  LOW TEST PERFORMANCE OR A HISTORY OF FINANCIAL DISTRESS ON AN
    12  EDUCATION EMPOWERMENT LIST. THE DEPARTMENT SHALL IMMEDIATELY
    13  NOTIFY THE SCHOOL DISTRICT OF ITS PLACEMENT ON THE EDUCATION
    14  EMPOWERMENT LIST AND SHALL PUBLISH THE LIST IN THE PENNSYLVANIA
    15  BULLETIN. A SCHOOL DISTRICT MAY PETITION THE DEPARTMENT TO
    16  EXCLUDE FROM ITS CALCULATION UNDER THIS SUBSECTION OR SECTION
    17  1707-B(A.1) THE PSSA TEST SCORE OF ANY STUDENT WHO WAS ENROLLED
    18  IN THE DISTRICT FOR LESS THAN NINETY (90) INSTRUCTIONAL DAYS OF
    19  THE SCHOOL YEAR IN WHICH THE TEST WAS ADMINISTERED.
    20     * * *
    21     (E)  [THE] WHERE A SCHOOL DISTRICT HAS BEEN PLACED ON THE
    22  EDUCATION EMPOWERMENT LIST DUE TO A HISTORY OF LOW OR
    23  EXTRAORDINARILY LOW TEST PERFORMANCE, THE SCHOOL DISTRICT
    24  IMPROVEMENT PLAN DEVELOPED PURSUANT TO SUBSECTION (C) SHALL GIVE
    25  PRIORITY CONSIDERATION TO IMPROVEMENT OF SCHOOLS IDENTIFIED
    26  PURSUANT TO SUBSECTION (B) AND SHALL SET FORTH SPECIFIC METHODS
    27  AND GOALS FOR IMPROVING THE EDUCATIONAL PERFORMANCE OF EACH
    28  DISTRICT SCHOOL AND THE SCHOOL DISTRICT THAT INCLUDE ALL OF THE
    29  FOLLOWING:
    30     (1)  IDENTIFICATION OF DISTRICTWIDE ACADEMIC STANDARDS, WHICH
    20030S0080B1341                 - 42 -     

     1  MEET OR EXCEED THE ACADEMIC STANDARDS UNDER 22 PA. CODE CH. 4
     2  (RELATING TO ACADEMIC STANDARDS AND ASSESSMENT).
     3     (2)  PERFORMANCE GOALS, BENCHMARKS AND TIMETABLES TO IMPROVE
     4  ACADEMIC PERFORMANCE FOR THE SCHOOL DISTRICT AND EACH SCHOOL IN
     5  THE SCHOOL DISTRICT THAT WILL ENABLE THE SCHOOL DISTRICT TO BE
     6  REMOVED FROM THE EDUCATION EMPOWERMENT LIST.
     7     (3)  REVISIONS TO THE CURRICULUM, INSTRUCTIONAL PRACTICES AND
     8  PROGRAMMING THAT WILL ENABLE STUDENTS TO ATTAIN THE ACADEMIC
     9  STANDARDS UNDER PARAGRAPH (1).
    10     (4)  A SYSTEM OF ASSESSMENTS TO MEASURE THE PERFORMANCE OF
    11  THE SCHOOL DISTRICT, EACH SCHOOL IN THE SCHOOL DISTRICT AND
    12  STUDENTS IN MEETING THE ACADEMIC STANDARDS UNDER PARAGRAPH (1).
    13     (5)  A SYSTEM OF ACADEMIC ACCOUNTABILITY THAT PROVIDES FOR
    14  SPECIFIC CONSEQUENCES FOR STUDENTS, EACH SCHOOL IN THE SCHOOL
    15  DISTRICT AND ADMINISTRATORS FOR ATTAINING OR FAILING TO ATTAIN
    16  LEVELS OF ACADEMIC PERFORMANCE SET FORTH IN THE SCHOOL DISTRICT
    17  IMPROVEMENT PLAN.
    18     (6)  SPECIFIC PROCEDURES TO INFORM PARENTS OR GUARDIANS AND
    19  THE COMMUNITY OF THE PERFORMANCE OF EACH SCHOOL IN THE SCHOOL
    20  DISTRICT AND TO INCREASE THEIR PARTICIPATION.
    21     (7)  SPECIFIC POLICIES AND PROCEDURES TO INCREASE THE
    22  AUTHORITY TO INDIVIDUAL SCHOOLS AND RESPONSIBILITY FOR
    23  PERFORMANCE OF INDIVIDUAL SCHOOLS, INCLUDING GRANTING INDIVIDUAL
    24  SCHOOLS GREATER CONTROL OF THEIR PERSONNEL, BUDGET AND
    25  EDUCATIONAL PROGRAM.
    26     (8)  A SYSTEM OF SCHOOL SELECTION THAT TO THE GREATEST EXTENT
    27  POSSIBLE ALLOWS PARENTS TO CHOOSE THE PUBLIC SCHOOL IN THE
    28  DISTRICT THEIR CHILD CAN ATTEND.
    29     (9)  PROFESSIONAL DEVELOPMENT ACTIVITIES AND PROGRAMS THAT
    30  WILL ASSIST TEACHERS AND ADMINISTRATORS IN ENABLING STUDENTS TO
    20030S0080B1341                 - 43 -     

     1  ATTAIN ACADEMIC STANDARDS.
     2     (10)  POLICIES AND PROCEDURES TO ASSURE A SAFE AND SECURE
     3  ENVIRONMENT IN SCHOOLS IN THE DISTRICT.
     4     (E.1)  WHERE A SCHOOL DISTRICT HAS BEEN PLACED ON THE
     5  EDUCATION EMPOWERMENT LIST DUE TO A HISTORY OF FINANCIAL
     6  DISTRESS, THE SCHOOL DISTRICT IMPROVEMENT PLAN DEVELOPED
     7  PURSUANT TO SUBSECTION (C) SHALL GIVE PRIORITY CONSIDERATION TO
     8  AND SET FORTH SPECIFIC METHODS AND GOALS FOR IMPROVING THE
     9  FINANCIAL STABILITY OF THE SCHOOL DISTRICT.
    10     * * *
    11     SECTION 23.  SECTION 1704-B OF THE ACT, AMENDED OR ADDED MAY
    12  10, 2000 (P.L.44, NO.16) AND JUNE 22, 2001 (P.L.530, NO.35), IS
    13  AMENDED TO READ:
    14     SECTION 1704-B.  BOARD OF SCHOOL DIRECTORS.--(A)  THE BOARD
    15  OF SCHOOL DIRECTORS SHALL IMPLEMENT THE SCHOOL DISTRICT
    16  IMPROVEMENT PLAN. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO
    17  THE CONTRARY, THE BOARD OF SCHOOL DIRECTORS OF A SCHOOL DISTRICT
    18  ON THE EDUCATION EMPOWERMENT LIST DUE TO A HISTORY OF LOW OR
    19  EXTRAORDINARILY LOW TEST PERFORMANCE MAY DO ANY OF THE FOLLOWING
    20  CONSISTENT WITH THE SCHOOL DISTRICT IMPROVEMENT PLAN:
    21     (1)  ESTABLISH ANY SCHOOL AS A CHARTER SCHOOL UNDER SECTION
    22  1708-B.
    23     (2)  DESIGNATE ANY SCHOOL OF THE DISTRICT AS AN INDEPENDENT
    24  SCHOOL OPERATING UNDER AN AGREEMENT WITH THE BOARD OF SCHOOL
    25  DIRECTORS, GRANTING OPERATIONAL CONTROL TO THE GOVERNING BODY OF
    26  THE INDEPENDENT SCHOOL. THE GOVERNING BODY OF THE INDEPENDENT
    27  SCHOOL, INCLUDING ITS MEMBERSHIP AND SELECTION PROCESS, SHALL BE
    28  ESTABLISHED BY THE BOARD OF SCHOOL DIRECTORS. THE GOVERNING BODY
    29  SHALL INCLUDE REPRESENTATIVES OF PARENTS AND TEACHERS. A SCHOOL
    30  DESIGNATED AS INDEPENDENT UNDER THIS PARAGRAPH SHALL HAVE THE
    20030S0080B1341                 - 44 -     

     1  AUTHORITY TO DECIDE ALL MATTERS RELATED TO THE OPERATION OF THE
     2  SCHOOL, INCLUDING THE EXERCISE OF POWERS PROVIDED UNDER THIS
     3  ARTICLE. THE AGREEMENT BETWEEN THE BOARD OF SCHOOL DIRECTORS AND
     4  THE INDEPENDENT SCHOOL SHALL DO THE FOLLOWING, CONSISTENT WITH
     5  THE SCHOOL DISTRICT IMPROVEMENT PLAN:
     6     (I)  DESCRIBE THE GOVERNANCE STRUCTURE OF THE INDEPENDENT
     7  SCHOOL, INCLUDING THE METHOD FOR THE SELECTION OF MEMBERS TO THE
     8  GOVERNING BODY.
     9     (II)  PRESCRIBE THE EDUCATIONAL GOALS AND MISSION OF THE
    10  INDEPENDENT SCHOOL AND THE CURRICULUM TO BE OFFERED.
    11     (III)  DESCRIBE THE ACADEMIC, FISCAL AND OTHER GOALS AND
    12  OBJECTIVES FOR WHICH THE INDEPENDENT SCHOOL WILL BE HELD
    13  ACCOUNTABLE AND THE EVALUATION CRITERIA AND PROCEDURES THAT WILL
    14  BE EMPLOYED TO DETERMINE WHETHER THE SCHOOL IS MEETING ITS GOALS
    15  AND OBJECTIVES.
    16     (IV)  GRANT THE INDEPENDENT SCHOOL ALLOCATION OF AND CONTROL
    17  OVER ITS FUNDING AND BUDGET. THE INDEPENDENT SCHOOL'S FUNDING
    18  SHALL BE DETERMINED BY THE AGREEMENT.
    19     (V)  GRANT THE INDEPENDENT SCHOOL CONTROL OF THE EDUCATIONAL
    20  PROGRAM AND CURRICULUM.
    21     (VI)  PRESCRIBE THE AUTHORITY OF THE INDEPENDENT SCHOOL TO
    22  ESTABLISH WORKING CONDITIONS, SELECT AND ASSIGN PROFESSIONAL AND
    23  NONPROFESSIONAL EMPLOYES, ESTABLISH NONTEACHING DUTIES, EXTEND
    24  THE LENGTH OF THE SCHOOL YEAR AND SCHEDULE OF THE SCHOOL DAY,
    25  INCLUDING HOLDING CLASS AFTER REGULAR HOURS.
    26     (VII)  DEFINE THE TERMS UNDER WHICH THE AGREEMENT MAY BE
    27  TERMINATED, EXTENDED OR RENEWED.
    28     (3)  EMPLOY PROFESSIONAL STAFF IN ACCORDANCE WITH SECTION
    29  1724-A AS IT PERTAINS TO CERTIFICATION.
    30     (4)  ENTER INTO CONTRACTS WITH AN INDIVIDUAL OR A FOR-PROFIT
    20030S0080B1341                 - 45 -     

     1  OR NONPROFIT ORGANIZATION, WHICH SHALL BE AUTHORIZED TO OPERATE
     2  A SCHOOL AND EMPLOY ITS OWN STAFF TO PROVIDE EDUCATIONAL
     3  SERVICES.
     4     (5)  RECONSTITUTE A SCHOOL.
     5     (6)  NOTWITHSTANDING SECTION 1125.1, REASSIGN, SUSPEND OR
     6  DISMISS A PROFESSIONAL EMPLOYE.
     7     (7)  SUPERVISE AND DIRECT PRINCIPALS, TEACHERS AND
     8  ADMINISTRATORS.
     9     (8)  RESCIND WITHOUT PENALTY THE CONTRACT OF THE
    10  SUPERINTENDENT AND OTHER ADMINISTRATIVE PERSONNEL ENTERED INTO
    11  AFTER THE EFFECTIVE DATE OF THIS ARTICLE.
    12     (9)  REALLOCATE RESOURCES, AMEND SCHOOL PROCEDURES, DEVELOP
    13  ACHIEVEMENT PLANS AND IMPLEMENT TESTING OR OTHER EVALUATION
    14  PROCEDURES FOR EDUCATIONAL PURPOSES.
    15     (B)  THE BOARD OF SCHOOL DIRECTORS OF A SCHOOL DISTRICT ON
    16  THE EDUCATION EMPOWERMENT LIST SHALL SUBMIT AN ANNUAL REPORT TO
    17  THE DEPARTMENT THAT INCLUDES A LIST OF ALL CONTRACTS ENTERED
    18  INTO BY THE BOARD AND ANY OTHER INFORMATION RELATING TO THE
    19  IMPLEMENTATION OF THIS SECTION AS REQUIRED BY DEPARTMENT
    20  GUIDELINES.
    21     SECTION 24.  SECTION 1705-B(H)(4) OF THE ACT, AMENDED
    22  DECEMBER 9, 2002 (P.L.1472, NO.187), IS AMENDED TO READ:
    23     SECTION 1705-B.  EDUCATION EMPOWERMENT DISTRICTS.--* * *
    24     (H)  * * *
    25     (4)  THE DEPARTMENT MAY UTILIZE UP TO $2,000,000 OF
    26  UNDISTRIBUTED FUNDS NOT EXPENDED, ENCUMBERED OR COMMITTED FROM
    27  APPROPRIATIONS FOR GRANTS AND SUBSIDIES MADE TO THE DEPARTMENT
    28  TO ASSIST SCHOOL DISTRICTS CERTIFIED AS AN EDUCATION EMPOWERMENT
    29  DISTRICT UNDER PARAGRAPH (3). THERE IS HEREBY ESTABLISHED A
    30  RESTRICTED ACCOUNT FROM WHICH PAYMENTS UNDER THIS PARAGRAPH
    20030S0080B1341                 - 46 -     

     1  SHALL BE PAID. FUNDS SHALL BE TRANSFERRED BY THE SECRETARY OF
     2  THE BUDGET TO THE RESTRICTED ACCOUNT TO THE EXTENT NECESSARY TO
     3  MAKE PAYMENTS UNDER THIS PARAGRAPH. FUNDS IN THE RESTRICTED
     4  ACCOUNT ARE HEREBY APPROPRIATED TO CARRY OUT THE PURPOSES OF
     5  THIS PARAGRAPH. THE SUBSIDY PAYMENT FROM THIS ACCOUNT SHALL BE
     6  UTILIZED TO SUPPLEMENT THE OPERATIONAL BUDGET OF THE ELIGIBLE
     7  SCHOOL DISTRICTS. THIS PARAGRAPH SHALL APPLY TO FISCAL YEARS
     8  2000-2001, 2001-2002 [AND], 2002-2003 AND 2003-2004 AND SHALL
     9  EXPIRE JUNE 30, [2003] 2004.
    10     SECTION 25.  SECTIONS 1709-B AND 1714-B(G) OF THE ACT, ADDED
    11  MAY 10, 2000 (P.L.44, NO.16), ARE AMENDED TO READ:
    12     SECTION 1709-B.  SCHOOL IMPROVEMENT GRANTS.--(A)  THE
    13  DEPARTMENT SHALL ESTABLISH A PROGRAM OF ANNUAL SCHOOL
    14  IMPROVEMENT GRANTS FOR SCHOOL DISTRICTS ON THE EDUCATION
    15  EMPOWERMENT LIST OR CERTIFIED AS AN EDUCATION EMPOWERMENT
    16  DISTRICT TO ASSIST IN THE IMPLEMENTATION OF THEIR SCHOOL
    17  DISTRICT IMPROVEMENT PLANS.
    18     (B)  GRANTS SHALL BE LIMITED TO THE AMOUNT APPROPRIATED FOR
    19  THAT PURPOSE.
    20     (C)  [GRANTS] WHERE THE SCHOOL DISTRICT IS ON THE EDUCATION
    21  EMPOWERMENT LIST OR IS CERTIFIED AS AN EDUCATION EMPOWERMENT
    22  DISTRICT DUE TO A HISTORY OF LOW OR EXTRAORDINARILY LOW TEST
    23  PERFORMANCE, GRANTS SHALL BE PROVIDED ANNUALLY TO THE SCHOOL
    24  DISTRICT FOR USE AS DIRECTED BY THE SCHOOL DISTRICT EMPOWERMENT
    25  TEAM OR THE BOARD OF CONTROL IN IMPLEMENTING THE SCHOOL DISTRICT
    26  IMPROVEMENT PLAN DEVELOPED PURSUANT TO SECTIONS 1703-B AND 1706-
    27  B AS FOLLOWS:
    28     (1)  TO PURCHASE INSTRUCTIONAL MATERIALS, INCLUDING
    29  TEXTBOOKS, TECHNOLOGY AND RELATED EDUCATIONAL MATERIALS AND
    30  SUPPLIES.
    20030S0080B1341                 - 47 -     

     1     (2)  TO REDUCE CLASS SIZE IN KINDERGARTEN THROUGH GRADE
     2  THREE.
     3     (3)  TO ESTABLISH AFTER-SCHOOL, SUMMER AND WEEKEND PROGRAMS.
     4     (4)  TO ESTABLISH OR EXPAND FULL-DAY KINDERGARTEN PROGRAM.
     5     (5)  TO FUND CURRICULUM DEVELOPMENT.
     6     (6)  TO FUND ENHANCED STAFF PROFESSIONAL DEVELOPMENT.
     7     (7)  TO FUND ANY OTHER PROGRAM CONTAINED IN THE SCHOOL
     8  DISTRICT IMPROVEMENT PLAN.
     9     (C.1)  WHERE THE SCHOOL DISTRICT IS ON THE EDUCATION
    10  EMPOWERMENT LIST DUE TO A HISTORY OF FINANCIAL DISTRESS, GRANTS
    11  SHALL BE PROVIDED ANNUALLY TO THE SCHOOL DISTRICT FOR USE AS
    12  DIRECTED BY THE SCHOOL DISTRICT EMPOWERMENT TEAM IN IMPLEMENTING
    13  THE SCHOOL DISTRICT IMPROVEMENT PLAN DEVELOPED PURSUANT TO
    14  SECTION 1703-B.
    15     (D)  SUBJECT TO THE REQUIREMENTS OF THIS SECTION, EACH
    16  QUALIFYING SCHOOL DISTRICT SHALL RECEIVE A BASE ANNUAL GRANT OF
    17  FOUR HUNDRED FIFTY THOUSAND DOLLARS ($450,000) AND AN ADDITIONAL
    18  GRANT OF UP TO SEVENTY-FIVE DOLLARS ($75) PER AVERAGE DAILY
    19  MEMBERSHIP FOR THE PRIOR SCHOOL YEAR OF THE SCHOOL DISTRICT. THE
    20  SCHOOL DISTRICT OR THE BOARD OF CONTROL SHALL GIVE PRIORITY IN
    21  ALLOCATING THE GRANT FUNDING RECEIVED UNDER THIS SECTION TO THE
    22  INDIVIDUAL SCHOOLS IDENTIFIED PURSUANT TO SECTIONS 1703-B(B) AND
    23  1706-B(B).
    24     (E)  THE DEPARTMENT SHALL SET FORTH THE SPECIFIC ALLOWABLE
    25  USES FOR GRANT FUNDS AND PLACE CONDITIONS, AS NECESSARY, ON THE
    26  USE OF GRANT FUNDS. THE DEPARTMENT SHALL ESTABLISH
    27  ACCOUNTABILITY PROCEDURES AND AUDITING GUIDELINES TO ENSURE THAT
    28  GRANT FUNDS ARE UTILIZED IN ACCORDANCE WITH THE ALLOWABLE USES
    29  AND CONDITIONS.
    30     (F)  A SCHOOL DISTRICT RECEIVING A GRANT UNDER THIS SECTION
    20030S0080B1341                 - 48 -     

     1  SHALL BE REQUIRED TO MAINTAIN SEPARATE ACCOUNTS IN THAT SCHOOL
     2  DISTRICT'S BUDGET TO FACILITATE MONITORING THE USE OF THESE
     3  GRANT FUNDS. IN NO CASE SHALL A SCHOOL DISTRICT USE MORE THAN
     4  FIVE PER CENTUM OF THE GRANT FUNDS FOR ADMINISTRATIVE COSTS.
     5     (G)  THE DEPARTMENT SHALL REDUCE THE AMOUNT OF A STATE
     6  SUBSIDY PAYMENT TO A SCHOOL DISTRICT BY THE AMOUNT OF ANY GRANT
     7  FUNDS PROVIDED UNDER THIS SECTION IF THE SCHOOL DISTRICT DOES
     8  NOT USE THE GRANT FUNDS IN ACCORDANCE WITH THE ALLOWABLE USES
     9  AND CONDITIONS SET FORTH BY THE DEPARTMENT.
    10     SECTION 1714-B.  MANDATE WAIVER PROGRAM.--* * *
    11     (G)  THE FOLLOWING PROVISIONS OF THIS ACT SHALL NOT BE
    12  SUBJECT TO WAIVER PURSUANT TO THIS SECTION: SECTIONS 108, 110,
    13  111, 321, 322, 323, 324, 325, 326, 327, 431, 436, 437, 440.1,
    14  443, 510, 513, 518, 527, 688, 701.1, 708, 736, 737, 738, 739,
    15  740, 741, 752, 753, 755, 771, 776, 777, 808, 809, 810, 1303(A),
    16  1310, 1317, 1317.1, 1317.2, 1318, 1327, 1327.1, 1330, 1332,
    17  1361, 1366, 1501, 1502, 1513, 1517, 1518, 1521, 1523, 1546 AND
    18  1547; PROVISIONS PROHIBITING DISCRIMINATION; ARTICLES VI, XI,
    19  XI-A, XII, XIII-A, XIV AND XVII-A AND THIS ARTICLE.
    20     * * *
    21     SECTION 26.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    22     SECTION 1714.1-B.  LIMITATION.--NOTWITHSTANDING ANY OTHER
    23  PROVISION OF THIS ARTICLE, NO SCHOOL DISTRICT SHALL BE PLACED ON
    24  THE EDUCATION EMPOWERMENT LIST UNDER SECTION 1703-B OR CERTIFIED
    25  AS AN EDUCATION EMPOWERMENT DISTRICT UNDER SECTION 1705-B OR
    26  1707-B ON OR AFTER JULY 1, 2004.
    27     SECTION 27.  SECTION 2001-A OF THE ACT IS AMENDED BY ADDING
    28  CLAUSES TO READ:
    29     SECTION 2001-A.  DEFINITIONS.--THE FOLLOWING WORDS AND
    30  PHRASES WHEN USED IN THIS ARTICLE SHALL, FOR THE PURPOSE OF THIS
    20030S0080B1341                 - 49 -     

     1  ARTICLE, HAVE THE FOLLOWING MEANINGS, RESPECTIVELY, EXCEPT IN
     2  THOSE INSTANCES WHERE THE CONTEXT CLEARLY INDICATES A DIFFERENT
     3  MEANING:
     4     * * *
     5     (20)  "CAMPUS POLICE" SHALL MEAN ALL LAW ENFORCEMENT
     6  PERSONNEL EMPLOYED BY THE SYSTEM WHO HAVE SUCCESSFULLY COMPLETED
     7  A CAMPUS POLICE COURSE OF TRAINING APPROVED UNDER 53 PA.C.S. CH.
     8  21 SUBCH. D (RELATING TO MUNICIPAL POLICE EDUCATION AND
     9  TRAINING).
    10     (21)  "GROUNDS" SHALL MEAN ALL LANDS AND BUILDINGS OWNED,
    11  CONTROLLED, LEASED OR MANAGED BY THE SYSTEM.
    12     SECTION 28.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    13     SECTION 2019-A.  CAMPUS POLICE POWERS AND DUTIES.--(A)
    14  CAMPUS POLICE OF AN INSTITUTION SHALL HAVE THE POWER AND THEIR
    15  DUTY SHALL BE:
    16     (1)  TO ENFORCE GOOD ORDER ON THE GROUNDS AND IN THE
    17  BUILDINGS OF THE INSTITUTION;
    18     (2)  TO PROTECT THE GROUNDS AND BUILDINGS OF THE INSTITUTION;
    19     (3)  TO EXCLUDE ALL DISORDERLY PERSONS FROM THE GROUNDS AND
    20  BUILDINGS OF THE INSTITUTION;
    21     (4)  TO ADOPT MEANS NECESSARY FOR THE PERFORMANCE OF THEIR
    22  DUTIES;
    23     (5)  TO EXERCISE THE SAME POWERS AS ARE NOW OR MAY HEREAFTER
    24  BE EXERCISED UNDER AUTHORITY OF LAW OR ORDINANCE BY THE POLICE
    25  OF THE MUNICIPALITIES WHEREIN THE INSTITUTION IS LOCATED,
    26  INCLUDING, BUT NOT LIMITED TO, THOSE POWERS CONFERRED PURSUANT
    27  TO 42 PA.C.S. CH. 89 SUBCH. D (RELATING TO MUNICIPAL POLICE
    28  JURISDICTION);
    29     (6)  TO PREVENT CRIME, INVESTIGATE CRIMINAL ACTS, APPREHEND,
    30  ARREST AND CHARGE CRIMINAL OFFENDERS AND ISSUE SUMMARY CITATIONS
    20030S0080B1341                 - 50 -     

     1  FOR ACTS COMMITTED ON THE GROUNDS OF THE INSTITUTION AND CARRY
     2  THE CRIMINAL OFFENDERS BEFORE THE PROPER DISTRICT JUSTICE AND
     3  PREFER CHARGES AGAINST THEM UNDER THE LAWS OF THIS COMMONWEALTH.
     4  EXCEPT WHEN ACTING PURSUANT TO 42 PA.C.S. CH. 89 SUBCH. D,
     5  CAMPUS POLICE SHALL EXERCISE THESE POWERS AND PERFORM THESE
     6  DUTIES ONLY ON THE GROUNDS OF THE INSTITUTION. FOR THE PURPOSES
     7  OF APPLYING THE PROVISIONS OF 42 PA.C.S. CH. 89 SUBCH. D, THE
     8  GROUNDS OF THE INSTITUTION SHALL CONSTITUTE THE PRIMARY
     9  JURISDICTION OF THE CAMPUS POLICE.
    10     (7)  TO ORDER OFF THE GROUNDS AND OUT OF THE BUILDINGS OF THE
    11  INSTITUTION ALL TRESPASSERS AND PERSONS UNDER THE INFLUENCE OF
    12  ALCOHOL OR CONTROLLED SUBSTANCES AND, IF NECESSARY, REMOVE THEM
    13  BY FORCE AND, IN CASE OF RESISTANCE, CARRY THEM BEFORE A
    14  DISTRICT JUSTICE; AND
    15     (8)  TO ARREST ANY PERSON WHO DAMAGES, MUTILATES OR DESTROYS
    16  THE PROPERTY OF THE INSTITUTION OR COMMITS ANY OTHER OFFENSE,
    17  INCLUDING THREATS OR ACTS OF TERRORISM, ON THE GROUNDS AND IN
    18  THE BUILDINGS OF THE INSTITUTION AND CARRY THAT PERSON BEFORE
    19  THE PROPER DISTRICT JUSTICE AND PREFER CHARGES AGAINST THAT
    20  PERSON UNDER THE LAWS OF THIS COMMONWEALTH.
    21     (B)  AN INSTITUTION IS AUTHORIZED TO ENTER INTO AN AGREEMENT
    22  WITH THE MUNICIPALITIES OVERLAIN BY OR ABUTTING ITS CAMPUS TO
    23  EXERCISE CONCURRENTLY THOSE POWERS AND TO PERFORM THOSE DUTIES
    24  CONFERRED PURSUANT TO A COOPERATIVE POLICE SERVICE AGREEMENT IN
    25  ACCORDANCE WITH 42 PA.C.S. § 8953 (RELATING TO STATEWIDE
    26  MUNICIPAL POLICE JURISDICTION). WHEN SO ACTING, THE CAMPUS
    27  POLICE OF THE INSTITUTION SHALL HAVE THE SAME POWERS, IMMUNITIES
    28  AND BENEFITS GRANTED TO POLICE OFFICERS IN 42 PA.C.S. CH. 89
    29  SUBCH. D. ALL SUCH AGREEMENTS SHALL BE CONSISTENT WITH THE
    30  MISSION AND PURPOSE OF THE SYSTEM.
    20030S0080B1341                 - 51 -     

     1     (C)  WHEN ACTING WITHIN THE SCOPE OF THE AUTHORITY OF THIS
     2  SECTION, CAMPUS POLICE ARE AT ALL TIMES EMPLOYES OF THE
     3  INSTITUTION AND SHALL BE ENTITLED TO ALL OF THE RIGHTS ACCRUING
     4  THEREFROM.
     5     SECTION 29.  SECTIONS 2002-B, 2003-B, 2004-B, 2005-B, 2006-B
     6  AND 2007-B OF THE ACT, ADDED MAY 17, 2001 (P.L.4, NO.4), ARE
     7  AMENDED TO READ:
     8  SECTION 2002-B.  DEFINITIONS.
     9     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    10  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    11  CONTEXT CLEARLY INDICATES OTHERWISE:
    12     "BUSINESS FIRM."  AN ENTITY AUTHORIZED TO DO BUSINESS IN THIS
    13  COMMONWEALTH AND SUBJECT TO TAXES IMPOSED UNDER ARTICLE IV, VI,
    14  VII, VII-A, VIII, VIII-A, IX OR XV OF THE ACT OF MARCH 4, 1971
    15  (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
    16     "CONTRIBUTION."  A DONATION OF CASH, PERSONAL PROPERTY OR
    17  SERVICES THE VALUE OF WHICH IS THE NET COST OF THE DONATION TO
    18  THE DONOR OR THE PRO RATA HOURLY WAGE, INCLUDING BENEFITS, OF
    19  THE INDIVIDUAL PERFORMING THE SERVICES.
    20     "DEPARTMENT."  THE DEPARTMENT OF COMMUNITY AND ECONOMIC
    21  DEVELOPMENT OF THE COMMONWEALTH.
    22     "EDUCATIONAL IMPROVEMENT ORGANIZATION."  A NONPROFIT ENTITY
    23  WHICH:
    24         (1)  IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION
    25     501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW
    26     99-514, 26 U.S.C. § 1 ET SEQ.); AND
    27         (2)  CONTRIBUTES AT LEAST 80% OF ITS ANNUAL RECEIPTS AS
    28     GRANTS TO A PUBLIC SCHOOL FOR INNOVATIVE EDUCATIONAL
    29     PROGRAMS.
    30  FOR PURPOSES OF THIS DEFINITION, A NONPROFIT ENTITY
    20030S0080B1341                 - 52 -     

     1  "CONTRIBUTES" ITS ANNUAL CASH RECEIPTS WHEN IT EXPENDS OR
     2  OTHERWISE IRREVOCABLY ENCUMBERS THOSE FUNDS FOR EXPENDITURE
     3  DURING THE THEN CURRENT FISCAL YEAR OF THE NONPROFIT ENTITY OR
     4  DURING THE NEXT SUCCEEDING FISCAL YEAR OF THE NONPROFIT ENTITY.
     5     "ELIGIBLE PRE-KINDERGARTEN STUDENT."  A STUDENT WHO IS
     6  ENROLLED IN A PRE-KINDERGARTEN PROGRAM AND IS A MEMBER OF A
     7  HOUSEHOLD WITH AN ANNUAL HOUSEHOLD INCOME OF NOT MORE THAN
     8  $50,000. AN INCOME ALLOWANCE OF $10,000 SHALL BE ALLOWED FOR
     9  EACH ELIGIBLE STUDENT AND DEPENDENT MEMBER OF THE HOUSEHOLD.
    10     "ELIGIBLE STUDENT."  A SCHOOL-AGE STUDENT WHO IS ENROLLED IN
    11  A SCHOOL AND IS A MEMBER OF A HOUSEHOLD WITH AN ANNUAL HOUSEHOLD
    12  INCOME OF NOT MORE THAN $50,000. AN INCOME ALLOWANCE OF $10,000
    13  SHALL BE ALLOWED FOR EACH ELIGIBLE STUDENT AND DEPENDENT MEMBER
    14  OF THE HOUSEHOLD.
    15     "HOUSEHOLD."  AN INDIVIDUAL LIVING ALONE OR WITH THE
    16  FOLLOWING: A SPOUSE, PARENT AND THEIR UNEMANCIPATED MINOR
    17  CHILDREN; AND OTHER UNEMANCIPATED MINOR CHILDREN WHO ARE RELATED
    18  BY BLOOD OR MARRIAGE; OR OTHER ADULTS OR UNEMANCIPATED MINOR
    19  CHILDREN LIVING IN THE HOUSEHOLD WHO ARE DEPENDENT UPON THE
    20  INDIVIDUAL.
    21     "HOUSEHOLD INCOME."  ALL MONEYS OR PROPERTY RECEIVED OF
    22  WHATEVER NATURE AND FROM WHATEVER SOURCE DERIVED. THE TERM DOES
    23  NOT INCLUDE THE FOLLOWING:
    24         (1)  PERIODIC PAYMENTS FOR SICKNESS AND DISABILITY OTHER
    25     THAN REGULAR WAGES RECEIVED DURING A PERIOD OF SICKNESS OR
    26     DISABILITY.
    27         (2)  DISABILITY, RETIREMENT OR OTHER PAYMENTS ARISING
    28     UNDER WORKERS' COMPENSATION ACTS, OCCUPATIONAL DISEASE ACTS
    29     AND SIMILAR LEGISLATION BY ANY GOVERNMENT.
    30         (3)  PAYMENTS COMMONLY RECOGNIZED AS OLD-AGE OR
    20030S0080B1341                 - 53 -     

     1     RETIREMENT BENEFITS PAID TO PERSONS RETIRED FROM SERVICE
     2     AFTER REACHING A SPECIFIC AGE OR AFTER A STATED PERIOD OF
     3     EMPLOYMENT.
     4         (4)  PAYMENTS COMMONLY KNOWN AS PUBLIC ASSISTANCE OR
     5     UNEMPLOYMENT COMPENSATION PAYMENTS BY A GOVERNMENTAL AGENCY.
     6         (5)  PAYMENTS TO REIMBURSE ACTUAL EXPENSES.
     7         (6)  PAYMENTS MADE BY EMPLOYERS OR LABOR UNIONS FOR
     8     PROGRAMS COVERING HOSPITALIZATION, SICKNESS, DISABILITY OR
     9     DEATH, SUPPLEMENTAL UNEMPLOYMENT BENEFITS, STRIKE BENEFITS,
    10     SOCIAL SECURITY AND RETIREMENT.
    11         (7)  COMPENSATION RECEIVED BY UNITED STATES SERVICEMEN
    12     SERVING IN A COMBAT ZONE.
    13     "INNOVATIVE EDUCATIONAL PROGRAM."  AN ADVANCED ACADEMIC OR
    14  SIMILAR PROGRAM THAT IS NOT PART OF THE REGULAR ACADEMIC PROGRAM
    15  OF A PUBLIC SCHOOL BUT THAT ENHANCES THE CURRICULUM OR ACADEMIC
    16  PROGRAM OF THE PUBLIC SCHOOL.
    17     "PRE-KINDERGARTEN PROGRAM."  A PROGRAM OF INSTRUCTION FOR
    18  THREE-YEAR OLD OR FOUR-YEAR OLD STUDENTS THAT UTILIZES A
    19  CURRICULUM ALIGNED WITH THE CURRICULUM OF THE SCHOOL WITH WHICH
    20  IT IS AFFILIATED, AND WHICH PROVIDES A MINIMUM OF TWO HOURS OF
    21  INSTRUCTIONAL AND DEVELOPMENTAL ACTIVITIES PER DAY AT LEAST 60
    22  DAYS PER SCHOOL YEAR.
    23     "PRE-KINDERGARTEN SCHOLARSHIP ORGANIZATION."  A NONPROFIT
    24  ENTITY WHICH:
    25         (1)  EITHER IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION
    26     501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW
    27     99-514, 26 U.S.C. § 1 ET SEQ.), OR IS OPERATED AS A SEPARATE
    28     SEGREGATED FUND BY A SCHOLARSHIP ORGANIZATION THAT HAS BEEN
    29     QUALIFIED UNDER SECTION 2003-B; AND
    30         (2)  CONTRIBUTES AT LEAST 80% OF ITS ANNUAL CASH RECEIPTS
    20030S0080B1341                 - 54 -     

     1     TO A PRE-KINDERGARTEN SCHOLARSHIP PROGRAM BY EXPENDING OR
     2     OTHERWISE IRREVOCABLY ENCUMBERING THOSE FUNDS FOR
     3     DISTRIBUTION DURING THE THEN CURRENT FISCAL YEAR OF THE
     4     ORGANIZATION OR DURING THE NEXT SUCCEEDING FISCAL YEAR OF THE
     5     ORGANIZATION.
     6     "PRE-KINDERGARTEN SCHOLARSHIP PROGRAM."  A PROGRAM TO PROVIDE
     7  TUITION TO ELIGIBLE PRE-KINDERGARTEN STUDENTS TO ATTEND A PRE-
     8  KINDERGARTEN PROGRAM OPERATED BY OR IN CONJUNCTION WITH A SCHOOL
     9  LOCATED IN THIS COMMONWEALTH AND THAT INCLUDES AN APPLICATION
    10  AND REVIEW PROCESS FOR THE PURPOSE OF MAKING AWARDS TO ELIGIBLE
    11  PRE-KINDERGARTEN STUDENTS AND AWARDS SCHOLARSHIPS TO ELIGIBLE
    12  PRE-KINDERGARTEN STUDENTS WITHOUT LIMITING AVAILABILITY TO ONLY
    13  STUDENTS OF ONE SCHOOL.
    14     "PUBLIC SCHOOL."  A PUBLIC KINDERGARTEN, ELEMENTARY SCHOOL OR
    15  SECONDARY SCHOOL AT WHICH THE COMPULSORY ATTENDANCE REQUIREMENTS
    16  OF THIS COMMONWEALTH MAY BE MET AND WHICH MEETS THE APPLICABLE
    17  REQUIREMENTS OF TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 (PUBLIC
    18  LAW 88-352, 78 STAT. 241).
    19     "SCHOLARSHIP ORGANIZATION."  A NONPROFIT ENTITY WHICH:
    20         (1)  IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION
    21     501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW
    22     99-514, 26 U.S.C. § 1 ET SEQ.); AND
    23         (2)  CONTRIBUTES AT LEAST 80% OF ITS ANNUAL CASH RECEIPTS
    24     TO A SCHOLARSHIP PROGRAM.
    25  FOR PURPOSES OF THIS DEFINITION, A NONPROFIT ENTITY
    26  "CONTRIBUTES" ITS ANNUAL CASH RECEIPTS TO A SCHOLARSHIP PROGRAM
    27  WHEN IT EXPENDS OR OTHERWISE IRREVOCABLY ENCUMBERS THOSE FUNDS
    28  FOR DISTRIBUTION DURING THE THEN CURRENT FISCAL YEAR OF THE
    29  NONPROFIT ENTITY OR DURING THE NEXT SUCCEEDING FISCAL YEAR OF
    30  THE NONPROFIT ENTITY.
    20030S0080B1341                 - 55 -     

     1     "SCHOLARSHIP PROGRAM."  A PROGRAM TO PROVIDE TUITION TO
     2  ELIGIBLE STUDENTS TO ATTEND A SCHOOL LOCATED IN THIS
     3  COMMONWEALTH. A SCHOLARSHIP PROGRAM MUST INCLUDE AN APPLICATION
     4  AND REVIEW PROCESS FOR THE PURPOSE OF MAKING AWARDS TO ELIGIBLE
     5  STUDENTS. THE AWARD OF SCHOLARSHIPS TO ELIGIBLE STUDENTS SHALL
     6  BE MADE WITHOUT LIMITING AVAILABILITY TO ONLY STUDENTS OF ONE
     7  SCHOOL.
     8     "SCHOOL."  A PUBLIC OR NONPUBLIC KINDERGARTEN, ELEMENTARY
     9  SCHOOL OR SECONDARY SCHOOL AT WHICH THE COMPULSORY ATTENDANCE
    10  REQUIREMENTS OF THE COMMONWEALTH MAY BE MET AND WHICH MEETS THE
    11  APPLICABLE REQUIREMENTS OF TITLE VI OF THE CIVIL RIGHTS ACT OF
    12  1964 (PUBLIC LAW 88-352, 78 STAT. 241).
    13     "SCHOOL AGE."  CHILDREN FROM THE EARLIEST ADMISSION AGE TO A
    14  SCHOOL'S PRE-KINDERGARTEN OR KINDERGARTEN PROGRAM OR, WHEN NO
    15  PRE-KINDERGARTEN OR KINDERGARTEN PROGRAM IS PROVIDED, THE
    16  SCHOOL'S EARLIEST ADMISSION AGE FOR BEGINNERS, UNTIL THE END OF
    17  THE SCHOOL YEAR THE STUDENT ATTAINS 21 YEARS OF AGE OR
    18  GRADUATION FROM HIGH SCHOOL, WHICHEVER OCCURS FIRST.
    19  SECTION 2003-B.  QUALIFICATION AND APPLICATION.
    20     (A)  ESTABLISHMENT.--IN ACCORDANCE WITH SECTION 14 OF ARTICLE
    21  III OF THE CONSTITUTION OF PENNSYLVANIA, AN EDUCATIONAL
    22  IMPROVEMENT TAX CREDIT PROGRAM IS HEREBY ESTABLISHED TO ENHANCE
    23  THE EDUCATIONAL OPPORTUNITIES AVAILABLE TO ALL STUDENTS IN THIS
    24  COMMONWEALTH.
    25     (B)  INFORMATION.--IN ORDER TO QUALIFY UNDER THIS ARTICLE, A
    26  SCHOLARSHIP ORGANIZATION, A PRE-KINDERGARTEN SCHOLARSHIP
    27  ORGANIZATION OR AN EDUCATIONAL IMPROVEMENT ORGANIZATION MUST
    28  SUBMIT INFORMATION TO THE DEPARTMENT THAT ENABLES THE DEPARTMENT
    29  TO CONFIRM THAT THE ORGANIZATION IS EXEMPT FROM TAXATION UNDER
    30  SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC
    20030S0080B1341                 - 56 -     

     1  LAW 99-514, 26 U.S.C. § 1 ET SEQ.).
     2     (C)  SCHOLARSHIP [PROGRAM] ORGANIZATIONS AND PRE-KINDERGARTEN
     3  SCHOLARSHIP ORGANIZATIONS.--A SCHOLARSHIP ORGANIZATION OR PRE-
     4  KINDERGARTEN SCHOLARSHIP ORGANIZATION MUST CERTIFY TO THE
     5  DEPARTMENT THAT THE ORGANIZATION IS ELIGIBLE TO PARTICIPATE IN
     6  THE PROGRAM ESTABLISHED UNDER THIS ARTICLE.
     7     (D)  EDUCATIONAL IMPROVEMENT ORGANIZATION.--AN APPLICATION
     8  SUBMITTED BY AN EDUCATIONAL IMPROVEMENT ORGANIZATION MUST
     9  DESCRIBE ITS PROPOSED INNOVATIVE EDUCATIONAL PROGRAM OR PROGRAMS
    10  IN A FORM PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT SHALL
    11  CONSULT WITH THE DEPARTMENT OF EDUCATION AS NECESSARY. THE
    12  DEPARTMENT SHALL REVIEW AND APPROVE OR DISAPPROVE THE
    13  APPLICATION.
    14     (E)  NOTIFICATION.--THE DEPARTMENT SHALL NOTIFY THE
    15  SCHOLARSHIP ORGANIZATION, PRE-KINDERGARTEN SCHOLARSHIP
    16  ORGANIZATION OR EDUCATIONAL IMPROVEMENT ORGANIZATION THAT THE
    17  ORGANIZATION MEETS THE REQUIREMENTS OF THIS ARTICLE FOR THAT
    18  FISCAL YEAR NO LATER THAN 60 DAYS AFTER THE ORGANIZATION HAS
    19  SUBMITTED THE INFORMATION REQUIRED UNDER THIS SECTION.
    20     (F)  PUBLICATION.--THE DEPARTMENT SHALL ANNUALLY PUBLISH A
    21  LIST OF EACH SCHOLARSHIP ORGANIZATION, PRE-KINDERGARTEN
    22  SCHOLARSHIP ORGANIZATION OR EDUCATIONAL IMPROVEMENT ORGANIZATION
    23  QUALIFIED UNDER THIS SECTION IN THE PENNSYLVANIA BULLETIN. THE
    24  LIST SHALL ALSO BE POSTED AND UPDATED AS NECESSARY ON THE
    25  PUBLICLY ACCESSIBLE WORLD WIDE WEB SITE OF THE DEPARTMENT.
    26  SECTION 2004-B.  APPLICATION.
    27     (A)  SCHOLARSHIP ORGANIZATION OR PRE-KINDERGARTEN SCHOLARSHIP
    28  ORGANIZATIONS.--A BUSINESS FIRM SHALL APPLY TO THE DEPARTMENT
    29  FOR A TAX CREDIT UNDER SECTION 2005-B. A BUSINESS FIRM SHALL
    30  RECEIVE A TAX CREDIT UNDER THIS ARTICLE IF THE SCHOLARSHIP
    20030S0080B1341                 - 57 -     

     1  ORGANIZATION OR PRE-KINDERGARTEN SCHOLARSHIP ORGANIZATION THAT
     2  RECEIVES THE CONTRIBUTION APPEARS ON THE LIST ESTABLISHED UNDER
     3  SECTION 2003-B(F).
     4     (B)  EDUCATIONAL IMPROVEMENT ORGANIZATION.--A BUSINESS FIRM
     5  MUST APPLY TO THE DEPARTMENT FOR A CREDIT UNDER SECTION 2005-B.
     6  A BUSINESS FIRM SHALL RECEIVE A TAX CREDIT UNDER THIS ARTICLE IF
     7  THE DEPARTMENT HAS APPROVED THE PROGRAM PROVIDED BY THE
     8  EDUCATIONAL IMPROVEMENT ORGANIZATION THAT RECEIVES THE
     9  CONTRIBUTION.
    10     (C)  AVAILABILITY OF TAX CREDITS.--TAX CREDITS UNDER THIS
    11  ARTICLE SHALL BE MADE AVAILABLE BY THE DEPARTMENT ON A FIRST-
    12  COME, FIRST-SERVED BASIS WITHIN THE LIMITATION ESTABLISHED UNDER
    13  SECTION 2006-B(A).
    14     (D)  CONTRIBUTIONS.--A CONTRIBUTION BY A BUSINESS FIRM TO A
    15  SCHOLARSHIP ORGANIZATION, PRE-KINDERGARTEN SCHOLARSHIP
    16  ORGANIZATION OR EDUCATIONAL IMPROVEMENT ORGANIZATION SHALL BE
    17  MADE NO LATER THAN 60 DAYS FOLLOWING THE APPROVAL OF AN
    18  APPLICATION UNDER SUBSECTION (A) OR (B).
    19  SECTION 2005-B.  TAX CREDIT.
    20     (A)  [GENERAL RULE] SCHOLARSHIP OR EDUCATIONAL IMPROVEMENT
    21  ORGANIZATIONS.--IN ACCORDANCE WITH SECTION 2006-B(A), THE
    22  DEPARTMENT OF REVENUE SHALL GRANT A TAX CREDIT AGAINST ANY TAX
    23  DUE UNDER ARTICLE IV, VI, VII, VII-A, VIII, VIII-A, IX OR XV OF
    24  THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM
    25  CODE OF 1971, TO A BUSINESS FIRM PROVIDING PROOF OF A
    26  CONTRIBUTION TO A SCHOLARSHIP ORGANIZATION OR EDUCATIONAL
    27  IMPROVEMENT ORGANIZATION IN THE TAXABLE YEAR IN WHICH THE
    28  CONTRIBUTION IS MADE WHICH SHALL NOT EXCEED 75% OF THE TOTAL
    29  AMOUNT CONTRIBUTED DURING THE TAXABLE YEAR BY THE BUSINESS FIRM.
    30  SUCH CREDIT SHALL NOT EXCEED [$100,000] $200,000 ANNUALLY PER
    20030S0080B1341                 - 58 -     

     1  BUSINESS FIRM FOR CONTRIBUTIONS MADE TO SCHOLARSHIP
     2  ORGANIZATIONS OR EDUCATIONAL IMPROVEMENT ORGANIZATIONS.
     3     (B)  ADDITIONAL AMOUNT.--THE DEPARTMENT OF REVENUE SHALL
     4  GRANT A TAX CREDIT OF UP TO 90% OF THE TOTAL AMOUNT CONTRIBUTED
     5  DURING THE TAXABLE YEAR IF THE BUSINESS FIRM PROVIDES A WRITTEN
     6  COMMITMENT TO PROVIDE THE SCHOLARSHIP ORGANIZATION OR
     7  EDUCATIONAL IMPROVEMENT ORGANIZATION WITH THE SAME AMOUNT OF
     8  CONTRIBUTION FOR TWO CONSECUTIVE TAX YEARS. THE BUSINESS FIRM
     9  MUST PROVIDE THE WRITTEN COMMITMENT UNDER THIS SUBSECTION TO THE
    10  DEPARTMENT AT THE TIME OF APPLICATION.
    11     (C)  PRE-KINDERGARTEN SCHOLARSHIP ORGANIZATIONS.--IN
    12  ACCORDANCE WITH SECTION 2006-B(A), THE DEPARTMENT OF REVENUE
    13  SHALL GRANT A TAX CREDIT AGAINST ANY TAX DUE UNDER ARTICLE IV,
    14  VI, VII, VII-A, VIII, VIII-A, IX OR XV, OF THE "TAX REFORM CODE
    15  OF 1971," TO A BUSINESS FIRM PROVIDING PROOF OF A CONTRIBUTION
    16  TO A PRE-KINDERGARTEN SCHOLARSHIP ORGANIZATION IN THE TAXABLE
    17  YEAR IN WHICH THE CONTRIBUTION IS MADE WHICH SHALL BE EQUAL TO
    18  100% OF THE FIRST $10,000 CONTRIBUTED DURING THE TAXABLE YEAR BY
    19  THE BUSINESS FIRM, AND WHICH SHALL NOT EXCEED 90% OF THE
    20  REMAINING AMOUNT CONTRIBUTED DURING THE TAXABLE YEAR BY THE
    21  BUSINESS FIRM. SUCH CREDIT SHALL NOT EXCEED $100,000 ANNUALLY
    22  PER BUSINESS FIRM FOR CONTRIBUTIONS MADE TO PRE-KINDERGARTEN
    23  SCHOLARSHIP ORGANIZATIONS.
    24     (D)  COMBINATION OF TAX CREDITS.--A BUSINESS FIRM MAY RECEIVE
    25  A TAX CREDIT FROM THE DEPARTMENT OF REVENUE FOR A CONTRIBUTION
    26  UNDER SUBSECTION (A) OR (C), OR BOTH.
    27  SECTION 2006-B.  LIMITATIONS.
    28     (A)  AMOUNT.--
    29         (1)  THE TOTAL AGGREGATE AMOUNT OF ALL TAX CREDITS
    30     APPROVED SHALL NOT EXCEED [$30,000,000] $40,000,000 IN A
    20030S0080B1341                 - 59 -     

     1     FISCAL YEAR. NO LESS THAN [$20,000,000] $26,666,666 OF THE
     2     TOTAL AGGREGATE AMOUNT SHALL BE USED TO PROVIDE TAX CREDITS
     3     FOR CONTRIBUTIONS FROM BUSINESS FIRMS TO SCHOLARSHIP
     4     ORGANIZATIONS. NO LESS THAN [$10,000,000] $13,333,333 OF THE
     5     TOTAL AGGREGATE AMOUNT SHALL BE USED TO PROVIDE TAX CREDITS
     6     FOR CONTRIBUTIONS FROM BUSINESS FIRMS TO EDUCATIONAL
     7     IMPROVEMENT ORGANIZATIONS.
     8         (2)  FOR THE FISCAL YEAR 2004-2005 AND EACH FISCAL YEAR
     9     THEREAFTER, THE TOTAL AGGREGATE AMOUNT OF ALL TAX CREDITS
    10     APPROVED FOR CONTRIBUTIONS FROM BUSINESS FIRMS TO PRE-
    11     KINDERGARTEN SCHOLARSHIP PROGRAMS SHALL NOT EXCEED $5,000,000
    12     IN A FISCAL YEAR.
    13     (B)  ACTIVITIES.--NO TAX CREDIT SHALL BE APPROVED FOR
    14  ACTIVITIES THAT ARE A PART OF A BUSINESS FIRM'S NORMAL COURSE OF
    15  BUSINESS.
    16     (C)  TAX LIABILITY.--A TAX CREDIT GRANTED FOR ANY ONE TAXABLE
    17  YEAR MAY NOT EXCEED THE TAX LIABILITY OF A BUSINESS FIRM.
    18     (D)  USE.--A TAX CREDIT NOT USED IN THE TAXABLE YEAR THE
    19  CONTRIBUTION WAS MADE MAY NOT BE CARRIED FORWARD OR CARRIED BACK
    20  AND IS NOT REFUNDABLE OR TRANSFERABLE.
    21     (E)  NONTAXABLE INCOME.--A SCHOLARSHIP RECEIVED BY AN
    22  ELIGIBLE STUDENT OR ELIGIBLE PRE-KINDERGARTEN STUDENT SHALL NOT
    23  BE CONSIDERED TO BE TAXABLE INCOME FOR THE PURPOSES OF ARTICLE
    24  III OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX
    25  REFORM CODE OF 1971.
    26  SECTION 2007-B.  LISTS.
    27     THE DEPARTMENT OF REVENUE SHALL PROVIDE A LIST OF ALL
    28  SCHOLARSHIP ORGANIZATIONS, PRE-KINDERGARTEN SCHOLARSHIP
    29  ORGANIZATIONS AND EDUCATIONAL IMPROVEMENT ORGANIZATIONS
    30  RECEIVING CONTRIBUTIONS FROM BUSINESS FIRMS GRANTED A TAX CREDIT
    20030S0080B1341                 - 60 -     

     1  UNDER THIS ARTICLE TO THE GENERAL ASSEMBLY BY JUNE 30 OF EACH
     2  YEAR.
     3     SECTION 30.  SECTIONS 2502.13 AND 2502.30 OF THE ACT, AMENDED
     4  JUNE 29, 2002 (P.L.524, NO.88), ARE AMENDED TO READ:
     5     SECTION 2502.13.  SMALL DISTRICT ASSISTANCE.--FOR THE 1984-
     6  1985 AND 1985-1986 SCHOOL YEARS, THE COMMONWEALTH SHALL PAY TO
     7  EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
     8  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND HAS A MARKET
     9  VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000)
    10  OR GREATER, AN AMOUNT EQUAL TO FIFTY DOLLARS ($50) MULTIPLIED BY
    11  THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE 1985-1986
    12  SCHOOL YEAR, NO SCHOOL DISTRICT SHALL RECEIVE LESS ON ACCOUNT OF
    13  THIS SECTION THAN IT DID FOR THE 1984-1985 SCHOOL YEAR. FOR THE
    14  SCHOOL YEAR 1986-1987, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL
    15  DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND
    16  FIVE HUNDRED (1,500) OR LESS AND HAS A MARKET VALUE/INCOME AID
    17  RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, OR
    18  RECEIVED PAYMENTS UNDER THIS SECTION FOR THE 1985-1986 SCHOOL
    19  YEAR, AN AMOUNT EQUAL TO SEVENTY-FIVE DOLLARS ($75) MULTIPLIED
    20  BY THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEAR
    21  1987-1988, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT
    22  WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE
    23  HUNDRED (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF
    24  FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, OR RECEIVED
    25  PAYMENTS UNDER THIS SECTION FOR THE 1986-1987 SCHOOL YEAR, AN
    26  AMOUNT EQUAL TO EIGHTY-FIVE DOLLARS ($85) MULTIPLIED BY THAT
    27  DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEAR 1988-
    28  1989, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT WHICH
    29  HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED
    30  (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF FIVE
    20030S0080B1341                 - 61 -     

     1  THOUSAND TEN THOUSANDTHS (0.5000) OR GREATER, OR RECEIVED
     2  PAYMENTS UNDER THIS SECTION FOR THE 1987-1988 OR 1988-1989
     3  SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED FIVE DOLLARS ($105).
     4  FOR THE SCHOOL YEAR 1989-1990, THE COMMONWEALTH SHALL PAY TO
     5  EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
     6  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND A MARKET
     7  VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000)
     8  OR GREATER, OR RECEIVED PAYMENTS UNDER THIS SECTION FOR THE
     9  1987-1988 SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED FIFTEEN
    10  DOLLARS ($115) MULTIPLIED BY THE DISTRICT'S AVERAGE DAILY
    11  MEMBERSHIP AS PROVIDED FOR IN SECTION 212 OF THE ACT OF JULY 1,
    12  1990 (P.L.1591, NO.7A), KNOWN AS THE "GENERAL APPROPRIATION ACT
    13  OF 1990." FOR THE SCHOOL YEAR 1990-1991, THE COMMONWEALTH SHALL
    14  PAY TO EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY
    15  MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND A
    16  MARKET VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS
    17  (0.5000) OR GREATER, OR RECEIVED PAYMENTS UNDER THIS SECTION FOR
    18  THE PRIOR SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED SEVENTY
    19  DOLLARS ($170) MULTIPLIED BY THAT DISTRICT'S AVERAGE DAILY
    20  MEMBERSHIP. FOR THE SCHOOL YEAR 1990-1991, EACH SCHOOL DISTRICT
    21  WITH A POPULATION PER SQUARE MILE OF LESS THAN NINETY (90),
    22  WHICH OTHERWISE MEETS THE AVERAGE DAILY MEMBERSHIP AND MARKET
    23  VALUE/INCOME AID RATIO REQUIREMENTS OF THIS SECTION, OR RECEIVED
    24  PAYMENTS UNDER THIS SECTION FOR THE PRIOR SCHOOL YEAR, SHALL
    25  INSTEAD RECEIVE AN AMOUNT EQUAL TO ONE HUNDRED NINETY DOLLARS
    26  ($190) MULTIPLIED BY THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP.
    27  FOR THE 1987-1988 SCHOOL YEAR THROUGH THE 1990-1991 SCHOOL YEAR,
    28  NO SCHOOL DISTRICT SHALL RECEIVE LESS ON ACCOUNT OF THIS SECTION
    29  THAN IT DID FOR THE PRIOR SCHOOL YEAR. FOR THE SCHOOL YEAR 1994-
    30  1995, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT WHICH
    20030S0080B1341                 - 62 -     

     1  HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED
     2  (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF FIVE
     3  THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, AN AMOUNT EQUAL TO
     4  NINETY FIVE DOLLARS ($95) MULTIPLIED BY THAT DISTRICT'S AVERAGE
     5  DAILY MEMBERSHIP. FOR EACH OF THE SCHOOL YEARS 1997-1998 THROUGH
     6  1999-2000, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT
     7  WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE
     8  HUNDRED (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF
     9  FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER AN AMOUNT
    10  EQUAL TO SEVENTY-FIVE DOLLARS ($75) MULTIPLIED BY THAT
    11  DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEARS 2000-
    12  2001 [AND], 2001-2002 AND 2002-2003, THE COMMONWEALTH SHALL PAY
    13  TO EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
    14  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AN AMOUNT EQUAL TO
    15  SEVENTY-FIVE DOLLARS ($75) MULTIPLIED BY THAT DISTRICT'S AVERAGE
    16  DAILY MEMBERSHIP.
    17     SECTION 2502.30.  TEMPORARY SPECIAL AID TO SCHOOL DISTRICTS
    18  SUFFERING LOSS OF TAX REVENUE DUE TO REDUCTION IN ASSESSED
    19  VALUATION OF TAXABLE PROPERTY.--(A)  TEMPORARY SPECIAL AID SHALL
    20  BE PAID IN FISCAL YEARS 1994-1995, 1995-1996, 1996-1997, 1997-
    21  1998, 1998-1999, 1999-2000, 2001-2002 [AND], 2002-2003 AND 2003-
    22  2004 TO SCHOOL DISTRICTS EXPERIENCING A SEVERE REDUCTION IN
    23  LOCAL REVENUE DUE TO A DECLINE IN THE ASSESSED VALUE OF TAXABLE
    24  PROPERTIES. THE ALLOCATION TO THESE DISTRICTS SHALL BE
    25  DETERMINED BY MULTIPLYING THE REDUCTION IN ASSESSED VALUE
    26  BETWEEN 1985-1986 AND 1992-1993 BY THE 1992-1993 REAL ESTATE
    27  MILLAGE RATE. THIS AID SHALL BE PAID FROM UNDISTRIBUTED FUNDS
    28  NOT EXPENDED, ENCUMBERED OR COMMITTED FROM APPROPRIATIONS FOR
    29  GRANTS AND SUBSIDIES MADE TO THE DEPARTMENT OF EDUCATION. NO
    30  OTHER FUNDS SHALL BE USED FOR ASSISTANCE UNDER THIS SECTION.
    20030S0080B1341                 - 63 -     

     1  THESE FUNDS SHALL BE SUFFICIENT TO PROVIDE TEMPORARY RELIEF TO
     2  SEVEN SCHOOL DISTRICTS IN FISCAL YEAR 1995-1996 AT SEVENTY-FIVE
     3  PER CENTUM (75%) OF THE FUNDS RECEIVED IN FISCAL YEAR 1994-1995,
     4  IN FISCAL YEAR 1996-1997 AT FIFTY PER CENTUM (50%) OF THE FUNDS
     5  RECEIVED IN FISCAL YEAR 1994-1995, IN FISCAL YEAR 1997-1998,
     6  1998-1999 AND IN FISCAL YEAR 1999-2000 AT TWENTY-FIVE PER CENTUM
     7  (25%) OF THE FUNDS RECEIVED IN FISCAL YEAR 1994-1995. FOR FISCAL
     8  YEARS 2001-2002 [AND], 2002-2003[,] AND 2003-2004 TO THE EXTENT
     9  FUNDS ARE AVAILABLE AS DETERMINED BY THE SECRETARY OF THE
    10  BUDGET, QUALIFYING SCHOOL DISTRICTS SHALL RECEIVE TWENTY-FIVE
    11  PER CENTUM (25%) OF THE FUNDS RECEIVED IN FISCAL YEAR 1994-1995.
    12     (B)  PAYMENTS MADE PURSUANT TO SUBSECTION (A) SHALL BE PAID
    13  FROM A RESTRICTED RECEIPT ACCOUNT, WHICH IS HEREBY ESTABLISHED,
    14  FOR SUCH PAYMENTS. FUNDS SHALL BE TRANSFERRED BY THE SECRETARY
    15  OF THE BUDGET TO THE RESTRICTED ACCOUNT ONLY TO THE EXTENT
    16  NECESSARY TO MAKE THE PAYMENTS AUTHORIZED BY THIS SECTION. THE
    17  MONEY IN THE RESTRICTED ACCOUNT IS HEREBY APPROPRIATED FROM THE
    18  ACCOUNT FOR PURPOSES OF THIS SECTION.
    19     (C)  THIS SECTION SHALL EXPIRE [OCTOBER 1, 2003] OCTOBER 1,
    20  2004.
    21     SECTION 31.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
    22     SECTION 2502.41.  BASIC EDUCATION FUNDING FOR 2002-2003
    23  SCHOOL YEAR.--FOR THE 2002-2003 SCHOOL YEAR, THE COMMONWEALTH
    24  SHALL PAY TO EACH SCHOOL DISTRICT A BASIC EDUCATION FUNDING
    25  ALLOCATION WHICH SHALL CONSIST OF THE FOLLOWING:
    26     (1)  AN AMOUNT EQUAL TO THE BASIC EDUCATION FUNDING
    27  ALLOCATION FOR THE 2001-2002 SCHOOL YEAR PURSUANT TO SECTIONS
    28  2502.13 AND 2502.40.
    29     (2)  WHERE THE SCHOOL DISTRICT RECEIVED A GRANT UNDER SECTION
    30  1709-B DURING THE 2002-2003 SCHOOL YEAR BUT IS NOT ELIGIBLE TO
    20030S0080B1341                 - 64 -     

     1  RECEIVE SUCH A GRANT DURING THE 2003-2004 SCHOOL YEAR, AN AMOUNT
     2  EQUAL TO THE GRANT AMOUNT IT RECEIVED DURING THE 2002-2003
     3  SCHOOL YEAR MULTIPLIED BY 0.50.
     4     (3)  A BASE SUPPLEMENT CALCULATED AS FOLLOWS:
     5     (I)  MULTIPLY THE SCHOOL DISTRICT'S 2003-2004 MARKET
     6  VALUE/INCOME AID RATIO BY ITS 2002-2003 AVERAGE DAILY
     7  MEMBERSHIP.
     8     (II)  MULTIPLY THE PRODUCT FROM SUBPARAGRAPH (I) BY FIFTY
     9  MILLION DOLLARS ($50,000,000).
    10     (III)  DIVIDE THE PRODUCT FROM SUBPARAGRAPH (II) BY THE SUM
    11  OF THE PRODUCTS OF THE 2003-2004 MARKET VALUE/INCOME AID RATIO
    12  MULTIPLIED BY THE 2002-2003 AVERAGE DAILY MEMBERSHIP FOR ALL
    13  SCHOOL DISTRICTS.
    14     (4)  A POVERTY SUPPLEMENT CALCULATED FOR QUALIFYING SCHOOL
    15  DISTRICTS AS FOLLOWS:
    16     (I)  TO QUALIFY FOR THE POVERTY SUPPLEMENT, A SCHOOL
    17  DISTRICT'S 2003-2004 MARKET VALUE/INCOME AID RATIO SHALL BE
    18  EQUAL TO OR GREATER THAN 0.6500 AND ITS PERSONAL INCOME
    19  VALUATION WHEN DIVIDED BY ITS 2002-2003 AVERAGE DAILY MEMBERSHIP
    20  SHALL BE EQUAL TO OR LESS THAN ONE HUNDRED THREE THOUSAND FIVE
    21  HUNDRED SEVENTY-ONE DOLLARS ($103,571).
    22     (II)  THE POVERTY SUPPLEMENT SHALL BE CALCULATED FOR
    23  QUALIFYING SCHOOL DISTRICTS AS FOLLOWS:
    24     (A)  MULTIPLY THE SCHOOL DISTRICT'S 2002-2003 AVERAGE DAILY
    25  MEMBERSHIP BY THIRTY MILLION DOLLARS ($30,000,000).
    26     (B)  DIVIDE THE PRODUCT FROM CLAUSE (A) BY THE SUM OF THE
    27  2002-2003 AVERAGE DAILY MEMBERSHIP FOR ALL QUALIFYING SCHOOL
    28  DISTRICTS.
    29     (5)  A TAX EFFORT SUPPLEMENT CALCULATED FOR QUALIFYING SCHOOL
    30  DISTRICTS AS FOLLOWS:
    20030S0080B1341                 - 65 -     

     1     (I)  TO QUALIFY FOR THE TAX EFFORT SUPPLEMENT, A SCHOOL
     2  DISTRICT'S 2001 EQUALIZED MILLAGE MUST BE EQUAL TO OR GREATER
     3  THAN 20.6 EQUALIZED MILLS.
     4     (II)  THE TAX EFFORT SUPPLEMENT SHALL BE CALCULATED FOR
     5  QUALIFYING SCHOOL DISTRICTS AS FOLLOWS:
     6     (A)  MULTIPLY THE SCHOOL DISTRICT'S 2002-2003 AVERAGE DAILY
     7  MEMBERSHIP BY FIFTEEN MILLION DOLLARS ($15,000,000).
     8     (B)  DIVIDE THE PRODUCT FROM CLAUSE (A) BY THE SUM OF THE
     9  2002-2003 AVERAGE DAILY MEMBERSHIP FOR ALL QUALIFYING SCHOOL
    10  DISTRICTS.
    11     (6)  A GROWTH SUPPLEMENT CALCULATED FOR QUALIFYING SCHOOL
    12  DISTRICTS AS FOLLOWS:
    13     (I)  TO QUALIFY FOR THE GROWTH SUPPLEMENT, A SCHOOL
    14  DISTRICT'S 2002-2003 AVERAGE DAILY MEMBERSHIP MUST BE GREATER
    15  THAN ITS 2001-2002 AVERAGE DAILY MEMBERSHIP.
    16     (II)  THE GROWTH SUPPLEMENT SHALL BE CALCULATED FOR
    17  QUALIFYING SCHOOL DISTRICTS AS FOLLOWS:
    18     (A)  SUBTRACT THE SCHOOL DISTRICT'S 2001-2002 AVERAGE DAILY
    19  MEMBERSHIP FROM ITS 2002-2003 AVERAGE DAILY MEMBERSHIP AND
    20  MULTIPLY THE DIFFERENCE BY ITS 2003-2004 MARKET VALUE/INCOME AID
    21  RATIO.
    22     (B)  MULTIPLY THE DIFFERENCE FROM CLAUSE (A) BY TEN MILLION
    23  DOLLARS ($10,000,000).
    24     (C)  DIVIDE THE PRODUCT FROM CLAUSE (B) BY THE SUM OF THE
    25  DIFFERENCES FROM CLAUSE (A) FOR ALL QUALIFYING SCHOOL DISTRICTS.
    26     (7)  EACH SCHOOL DISTRICT SHALL RECEIVE ADDITIONAL FUNDING AS
    27  NECESSARY SO THAT THE SUM OF THE AMOUNTS UNDER SECTION 2502.13
    28  AND UNDER PARAGRAPHS (3), (4), (5) AND (6) AND THIS PARAGRAPH
    29  WILL EQUAL AT LEAST TWO PER CENTUM (2%) OF THE AMOUNT IN
    30  PARAGRAPH (1).
    20030S0080B1341                 - 66 -     

     1     SECTION 2502.42.  REIMBURSEMENT OF ADDITIONAL EXPENSES
     2  RELATED TO BASIC EDUCATION.--DURING THE 2003-2004 FISCAL YEAR,
     3  THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT A SPECIAL
     4  SUPPLEMENT CALCULATED AS FOLLOWS:
     5     (1)  MULTIPLY THE NET AMOUNT OF BASIC EDUCATION FUNDING FOR
     6  THE 2002-2003 SCHOOL YEAR PURSUANT TO SECTIONS 2502.13 AND
     7  2502.41 THAT WOULD HAVE BEEN PAID IN AUGUST 2003 AND IN OCTOBER
     8  2003 TIMES AN INTEREST RATE AS DETERMINED BY THE SECRETARY OF
     9  EDUCATION. THE INTEREST RATE ESTABLISHED SHALL BE SUCH THAT THE
    10  FUNDS ALLOCATED UNDER THIS SECTION SHALL NOT EXCEED THE FUNDS
    11  APPROPRIATED FOR THIS PURPOSE.
    12     (2)  MULTIPLY THE PRODUCTS FROM PARAGRAPH (1) BY THE NUMBER
    13  OF DAYS RESPECTIVELY THAT THE AUGUST AND OCTOBER PAYMENTS WERE
    14  LATE.
    15     (3)  DIVIDE THE PRODUCTS FROM PARAGRAPH (2) BY THREE HUNDRED
    16  SIXTY-FIVE (365) DAYS.
    17     (4)  ADD THE AMOUNT CALCULATED IN PARAGRAPH (3) TO DETERMINE
    18  THE TOTAL SPECIAL SUPPLEMENT.
    19     SECTION 32.  SECTIONS 2509.1 AND 2509.5 OF THE ACT ARE
    20  AMENDED BY ADDING SUBSECTIONS TO READ:
    21     SECTION 2509.1.  PAYMENTS TO INTERMEDIATE UNITS.--* * *
    22     (B.11)  UP TO NINE MILLION FIVE HUNDRED THOUSAND DOLLARS
    23  ($9,500,000) MAY BE UTILIZED FOR PROGRAMS ADMINISTERED AND
    24  OPERATED BY INTERMEDIATE UNITS DURING THE 2003-2004 SCHOOL YEAR
    25  FOR INSTITUTIONALIZED CHILDREN AS ESTABLISHED IN SUBSECTION
    26  (B.1).
    27     * * *
    28     SECTION 2509.5.  SPECIAL EDUCATION PAYMENTS TO SCHOOL
    29  DISTRICTS.--* * *
    30     (LL)  DURING THE 2003-2004 SCHOOL YEAR, EACH SCHOOL DISTRICT
    20030S0080B1341                 - 67 -     

     1  SHALL BE PAID THE AMOUNT IT RECEIVED DURING THE 2002-2003 SCHOOL
     2  YEAR UNDER SUBSECTION (KK).
     3     (MM)  DURING THE 2003-2004 SCHOOL YEAR, THIRTY-SIX MILLION
     4  ONE HUNDRED FORTY-NINE THOUSAND FIVE HUNDRED EIGHTY-SEVEN
     5  DOLLARS ($36,149,587) OF THE FUNDS APPROPRIATED TO THE
     6  DEPARTMENT OF EDUCATION FOR SPECIAL EDUCATION SHALL BE USED TO
     7  PROVIDE SUPPLEMENTAL FUNDING FOR SPECIAL EDUCATION TO ALL SCHOOL
     8  DISTRICTS. THE SUPPLEMENTAL FUNDING SHALL BE CALCULATED AS
     9  FOLLOWS:
    10     (1)  MULTIPLY EACH SCHOOL DISTRICT'S 2003-2004 MARKET
    11  VALUE/INCOME AID RATIO BY SIXTEEN PER CENTUM (16%) OF ITS 2002-
    12  2003 AVERAGE DAILY MEMBERSHIP;
    13     (2)  MULTIPLY THE PRODUCT FROM PARAGRAPH (1) BY THIRTY-SIX
    14  MILLION ONE HUNDRED FORTY-NINE THOUSAND FIVE HUNDRED EIGHTY-
    15  SEVEN DOLLARS ($36,149,587); AND
    16     (3)  DIVIDE THE RESULTANT PRODUCT FROM PARAGRAPH (2) BY THE
    17  SUM OF THE PRODUCTS OF THE 2003-2004 MARKET VALUE/INCOME AID
    18  RATIO MULTIPLIED BY SIXTEEN PER CENTUM (16%) OF THE 2002-2003
    19  AVERAGE DAILY MEMBERSHIP FOR ALL SCHOOL DISTRICTS.
    20     SECTION 33.  SECTION 2509.8(D) OF THE ACT, ADDED MAY 10, 2000
    21  (P.L.44, NO.16), IS AMENDED AND THE SECTION IS AMENDED BY ADDING
    22  A SUBSECTION TO READ:
    23     SECTION 2509.8.  EXTRAORDINARY SPECIAL EDUCATION PROGRAM
    24  EXPENSES.--* * *
    25     (D)  FOR THE 2000-2001 SCHOOL YEAR [AND EACH SCHOOL YEAR
    26  THEREAFTER,] THROUGH THE 2002-2003 SCHOOL YEAR, THE DEPARTMENT
    27  OF EDUCATION SHALL SET ASIDE TWO PERCENT (2%) OF THE SPECIAL
    28  EDUCATION APPROPRIATION FOR EXTRAORDINARY EXPENSES INCURRED IN
    29  PROVIDING A SPECIAL EDUCATION PROGRAM OR SERVICE TO ONE OR MORE
    30  STUDENTS WITH DISABILITIES AS APPROVED BY THE SECRETARY OF
    20030S0080B1341                 - 68 -     

     1  EDUCATION.
     2     (E)  FOR THE 2003-2004 SCHOOL YEAR AND EACH SCHOOL YEAR
     3  THEREAFTER, THE DEPARTMENT OF EDUCATION SHALL SET ASIDE ONE PER
     4  CENTUM (1%) OF THE SPECIAL EDUCATION APPROPRIATION FOR
     5  EXTRAORDINARY EXPENSES INCURRED IN PROVIDING A SPECIAL EDUCATION
     6  PROGRAM OR SERVICE TO ONE OR MORE STUDENTS WITH DISABILITIES AS
     7  APPROVED BY THE SECRETARY OF EDUCATION. SUCH SPECIAL EDUCATION
     8  PROGRAM OR SERVICE SHALL INCLUDE, BUT NOT BE LIMITED TO, THE
     9  TRANSPORTATION OF STUDENTS WITH DISABILITIES; SERVICES RELATED
    10  TO OCCUPATIONAL THERAPY, PHYSICAL THERAPY, SPEECH AND LANGUAGE,
    11  HEARING IMPAIRMENTS OR VISUAL IMPAIRMENTS; OR TRAINING IN
    12  ORIENTATION AND MOBILITY FOR CHILDREN WHO ARE VISUALLY IMPAIRED
    13  OR BLIND.
    14     SECTION 34.  SECTION 2591.1 OF THE ACT, ADDED JUNE 29, 2002
    15  (P.L.524, NO.88), IS AMENDED TO READ:
    16     SECTION 2591.1.  COMMONWEALTH REIMBURSEMENTS FOR CHARTER
    17  SCHOOLS AND CYBER CHARTER SCHOOLS.--(A)  FOR THE 2001-2002
    18  SCHOOL YEAR, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT
    19  WITH RESIDENT STUDENTS ENROLLED IN A CHARTER SCHOOL, A CHARTER
    20  SCHOOL APPROVED UNDER SECTION 1717-A OR 1718-A WHICH PROVIDES
    21  INSTRUCTION THROUGH THE INTERNET OR OTHER ELECTRONIC MEANS OR A
    22  CYBER CHARTER SCHOOL AS DEFINED PURSUANT TO ARTICLE XVII-A AN
    23  AMOUNT EQUAL TO THIRTY PERCENT (30%) OF THE TOTAL FUNDING
    24  REQUIRED UNDER SECTION 1725-A(A). IF INSUFFICIENT FUNDS ARE
    25  APPROPRIATED TO MAKE COMMONWEALTH REIMBURSEMENTS UNDER THIS
    26  SECTION, THE REIMBURSEMENTS SHALL BE MADE ON A PRO RATA BASIS.
    27     (B)  FOR THE 2002-2003 SCHOOL YEAR, THE COMMONWEALTH SHALL
    28  PAY TO EACH SCHOOL DISTRICT THAT RECEIVED FUNDING UNDER
    29  SUBSECTION (A) FOR THE 2001-2002 SCHOOL YEAR AND THAT HAD
    30  RESIDENT STUDENTS ENROLLED IN A CHARTER SCHOOL, A CHARTER SCHOOL
    20030S0080B1341                 - 69 -     

     1  APPROVED UNDER SECTION 1717-A OR 1718-A WHICH PROVIDES
     2  INSTRUCTION THROUGH THE INTERNET OR OTHER ELECTRONIC MEANS OR A
     3  CYBER CHARTER SCHOOL AS DEFINED UNDER ARTICLE XVII-A DURING THE
     4  2002-2003 SCHOOL YEAR AN AMOUNT EQUAL TO THE LESSER OF:
     5     (1)  THE PAYMENT RECEIVED FOR THE 2001-2002 SCHOOL YEAR
     6  PURSUANT TO SUBSECTION (A); OR
     7     (2)  THIRTY PERCENT (30%) OF THE TOTAL FUNDING REQUIRED UNDER
     8  SECTION 1725-A(A).
     9     (C)  FOR THE 2002-2003 SCHOOL YEAR, THE COMMONWEALTH SHALL
    10  PAY TO EACH SCHOOL DISTRICT THAT DID NOT RECEIVE FUNDING UNDER
    11  SUBSECTION (A) FOR THE 2001-2002 SCHOOL YEAR AND THAT HAD
    12  RESIDENT STUDENTS ENROLLED IN A CHARTER SCHOOL, A CHARTER SCHOOL
    13  APPROVED UNDER SECTION 1717-A OR 1718-A WHICH PROVIDES
    14  INSTRUCTION THROUGH THE INTERNET OR OTHER ELECTRONIC MEANS OR A
    15  CYBER CHARTER SCHOOL AS DEFINED UNDER ARTICLE XVII-A DURING THE
    16  2002-2003 SCHOOL YEAR AN AMOUNT EQUAL TO THIRTY PERCENT (30%) OF
    17  THE TOTAL FUNDING REQUIRED UNDER SECTION 1725-A(A).
    18     (D)  FOR THE FISCAL YEAR 2003-2004, IF INSUFFICIENT FUNDS ARE
    19  APPROPRIATED TO MAKE COMMONWEALTH PAYMENTS PURSUANT TO THIS
    20  SECTION, SUCH PAYMENTS SHALL BE MADE ON A PRO RATA BASIS.
    21     SECTION 35.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    22     SECTION 2599.2.  PENNSYLVANIA ACCOUNTABILITY GRANTS.--(A)
    23  BEGINNING WITH THE 2004-2005 FISCAL YEAR, THE DEPARTMENT SHALL
    24  ESTABLISH A PROGRAM OF ANNUAL ACCOUNTABILITY GRANTS FOR THE
    25  BENEFIT OF STUDENTS ENROLLED IN EACH OF THE COMMONWEALTH'S
    26  SCHOOL DISTRICTS.
    27     (B)  THE GRANT SHALL BE USED BY A SCHOOL DISTRICT TO ATTAIN
    28  OR MAINTAIN ACADEMIC PERFORMANCE TARGETS. FUNDS OBTAINED UNDER
    29  THIS SECTION MAY BE USED FOR ANY OF THE FOLLOWING:
    30     (1)  ESTABLISHING, MAINTAINING OR EXPANDING A QUALITY
    20030S0080B1341                 - 70 -     

     1  PREKINDERGARTEN PROGRAM ALIGNED WITH THE CURRENT ACADEMIC
     2  STANDARDS CONTAINED IN 22 PA. CODE CH. 4 (RELATING TO ACADEMIC
     3  STANDARDS AND ASSESSMENT).
     4     (2)  ESTABLISHING, MAINTAINING OR EXPANDING A QUALITY FULL-
     5  DAY KINDERGARTEN PROGRAM ALIGNED WITH THE CURRENT ACADEMIC
     6  STANDARDS CONTAINED IN 22 PA CODE CH. 4. SUCH PROGRAMS SHALL BE
     7  KEPT OPEN FOR FIVE HOURS EACH DAY FOR THE FULL SCHOOL TERM AS
     8  PROVIDED IN SECTION 1501. THE BOARD OF SCHOOL DIRECTORS OF A
     9  SCHOOL DISTRICT MAY OFFER A FULL-DAY KINDERGARTEN PROGRAM TO
    10  CHILDREN WHO ARE BETWEEN FOUR AND SIX YEARS OLD.
    11     (3)  ESTABLISHING, MAINTAINING OR EXPANDING A CLASS SIZE
    12  REDUCTION PROGRAM. SUCH CLASS SIZE REDUCTION PROGRAM SHALL
    13  APPOINT AND ASSIGN A MINIMUM OF ONE TEACHER FOR EVERY 17
    14  STUDENTS OR TWO TEACHERS FOR EVERY 35 STUDENTS ENROLLED IN A
    15  KINDERGARTEN, FIRST, SECOND OR THIRD GRADE CLASSROOM. ALL
    16  TEACHERS APPOINTED AND ASSIGNED TO TEACH KINDERGARTEN, FIRST,
    17  SECOND OR THIRD GRADE SHALL BE CERTIFIED IN ACCORDANCE WITH 22
    18  PA CODE CH. 49 (RELATING TO CERTIFICATION OF PROFESSIONAL
    19  PERSONNEL) OR ITS SUCCESSORS. THE DEPARTMENT SHALL ESTABLISH
    20  GUIDELINES TO ASSURE THAT NO SCHOOL DISTRICT SATISFIES THE
    21  REQUIREMENTS OF THIS PARAGRAPH BY MAKING A REDUCTION IN, AND
    22  SUBSEQUENT INCREASE TO, CURRENT TEACHER COMPLEMENT. FOR PURPOSES
    23  OF THIS PARAGRAPH, THE PHRASE "ONE TEACHER FOR EVERY 17 STUDENTS
    24  OR TWO TEACHERS FOR EVERY 35 STUDENTS ENROLLED IN A
    25  KINDERGARTEN, FIRST, SECOND OR THIRD GRADE CLASSROOM" SHALL
    26  REFER TO THE NUMBER OF TEACHERS CONDUCTING A CLASS AT ANY ONE
    27  TIME IN A CLASSROOM CONTAINING THE APPLICABLE NUMBER OF
    28  STUDENTS.
    29     (4)  ESTABLISHING, EXPANDING OR MAINTAINING PROGRAMS THAT
    30  PROMOTE THE AVAILABILITY, COORDINATION, INTEGRATION AND
    20030S0080B1341                 - 71 -     

     1  UTILIZATION OF SOCIAL AND HEALTH SERVICES, ASSOCIATED RESOURCES
     2  AND ANCILLARY RESOURCES TO MEET THE NEEDS OF CHILDREN AND
     3  FAMILIES IN ADDRESSING ISSUES THAT MAY SERVE TO LIMIT STUDENT
     4  ACADEMIC ACHIEVEMENT.
     5     (5)  NOTWITHSTANDING THE PROVISIONS OF ARTICLE XV-C,
     6  PROVIDING TUTORING ASSISTANCE.
     7     (6)  IMPROVING THE ACADEMIC PERFORMANCE OF SUBGROUPS
     8  IDENTIFIED UNDER SECTION 1111(B) OF THE NO CHILD LEFT BEHIND ACT
     9  OF 2001.
    10     (7)  ESTABLISHING, EXPANDING OR MAINTAINING PROGRAMS TO
    11  ASSIST IN THE BUILDING OF STRONG SCIENCE AND APPLIED-KNOWLEDGE
    12  SKILLS.
    13     (8)  PROVIDING ADDITIONAL PROGRAMS FOR CONTINUING
    14  PROFESSIONAL EDUCATION THAT MAY INCLUDE ANY OF THE FOLLOWING:
    15  TRAINING IN MATHEMATICS, SCIENCE AND LITERACY-SPECIFIC
    16  CURRICULUM AND INSTRUCTIONAL STRATEGIES; TRAINING IN SCHOOL-WIDE
    17  IMPROVEMENT PLANNING; ANALYSIS OF STUDENT ACHIEVEMENT DATA,
    18  INCLUDING STUDENT WORK AND THE IMPLICATIONS FOR CLASSROOM
    19  PRACTICE; OBSERVING AND STUDYING EXEMPLARY SCHOOL AND CLASSROOM
    20  PRACTICES; IMPLEMENTING SCHOOL-WIDE PROGRAMS AND CLASSROOM
    21  MANAGEMENT STRATEGIES DESIGNED TO IMPROVE STUDENT CONDUCT; USING
    22  TECHNOLOGY TO BOOST STUDENT ACHIEVEMENT; CONDUCTING TRANSITION
    23  PLANNING AND CURRICULUM ALIGNMENT ACROSS SCHOOLS AND GRADE
    24  LEVELS; OR IMPLEMENTING SECONDARY STRATEGIES TO INCREASE STUDENT
    25  ENGAGEMENT AND PERSONALIZE LEARNING.
    26     (9)  ESTABLISHING, EXPANDING OR MAINTAINING MATH AND LITERACY
    27  COACHING PROGRAMS WITHIN SCHOOLS TO IMPROVE MATH AND READING
    28  INSTRUCTION.
    29     (10)  PROVIDING FINANCIAL INCENTIVES TO HIGHLY QUALIFIED,
    30  TENURED TEACHERS TO WORK IN THE MOST ACADEMICALLY CHALLENGED
    20030S0080B1341                 - 72 -     

     1  SCHOOLS IN A SCHOOL DISTRICT OR PROVIDING FINANCIAL INCENTIVES
     2  TO AID IN THE RECRUITMENT OF CERTIFICATED TEACHERS IN
     3  MATHEMATICS, SCIENCE, LANGUAGE ARTS OR ENGLISH AS A SECOND
     4  LANGUAGE TO WORK IN THE MOST ACADEMICALLY CHALLENGED SCHOOLS IN
     5  A SCHOOL DISTRICT.
     6     (11)  PROVIDING SUCH OTHER PROGRAMS OR ACTIVITIES THAT THE
     7  BOARD OF SCHOOL DIRECTORS OF A SCHOOL DISTRICT DETERMINES ARE
     8  ESSENTIAL TO ACHIEVING OR MAINTAINING ACADEMIC PERFORMANCE
     9  TARGETS THROUGH THE YEAR 2014.
    10     (C)  (1)  NO LATER THAN APRIL 10, 2004, THE DEPARTMENT SHALL
    11  NOTIFY EACH SCHOOL DISTRICT OF THE GRANT AMOUNT IT WILL RECEIVE
    12  UNDER SUBSECTION (D).
    13     (2)  WITHIN THIRTY (30) DAYS OF RECEIPT OF THE NOTIFICATION
    14  UNDER PARAGRAPH (1), THE SCHOOL DISTRICT SHALL SUBMIT TO THE
    15  DEPARTMENT AN ACCOUNTABILITY GRANT PLAN. THE PLAN SHALL INCLUDE:
    16     (I)  REFERENCE TO THE PROGRAMS OR ACTIVITIES UNDER SUBSECTION
    17  (B) FOR WHICH THE GRANT FUNDS WILL BE USED.
    18     (II)  IDENTIFICATION OF WHETHER THE GRANT FUNDS WILL BE USED
    19  TO ESTABLISH, MAINTAIN OR EXPAND THE PROGRAMS OR ACTIVITIES
    20  REFERENCED UNDER SUBPARAGRAPH (I).
    21     (III)  A BRIEF DESCRIPTION OF THE PROGRAMS OR ACTIVITIES FOR
    22  WHICH THE GRANT FUNDS WILL BE USED.
    23     (3)  (I)  WHERE THE ACCOUNTABILITY GRANT PLAN SUBMITTED UNDER
    24  PARAGRAPH (2) PROPOSES TO USE THE GRANT FUNDS FOR A PROGRAM OR
    25  ACTIVITY UNDER SUBSECTION (B)(11), THE DEPARTMENT SHALL HAVE
    26  FIFTEEN (15) DAYS FROM THE RECEIPT OF THE PLAN TO DISAPPROVE THE
    27  USE AND NOTIFY THE SCHOOL DISTRICT OF THE REASON FOR THE
    28  DISAPPROVAL. WITHIN THIRTY (30) DAYS OF THE RECEIPT OF NOTICE OF
    29  DISAPPROVAL, THE SCHOOL DISTRICT SHALL SUBMIT A REVISED
    30  ACCOUNTABILITY GRANT PLAN UNDER PARAGRAPH (2).
    20030S0080B1341                 - 73 -     

     1     (II)  WHERE THE ACCOUNTABILITY GRANT PLAN SUBMITTED UNDER
     2  PARAGRAPH (2) PROPOSES TO USE THE GRANT FUNDS FOR A PROGRAM OR
     3  ACTIVITY UNDER SUBSECTION (B)(11) AND THE SCHOOL DISTRICT FAILS
     4  TO RECEIVE NOTIFICATION FROM THE SECRETARY WITHIN FIFTEEN (15)
     5  DAYS OF RECEIPT THAT ITS REQUEST HAS BEEN DISAPPROVED, THE
     6  SCHOOL DISTRICT MAY PROCEED TO IMPLEMENT THE PROPOSED PROGRAMS
     7  OR ACTIVITIES.
     8     (4)  WHERE THE ACCOUNTABILITY GRANT PLAN SUBMITTED UNDER
     9  PARAGRAPH (2) PROPOSES TO USE THE GRANT FUNDS FOR A PROGRAM OR
    10  ACTIVITY UNDER SUBSECTION (B)(1), (2), (3), (4), (5), (6), (7),
    11  (8), (9) OR (10), THE DEPARTMENT MAY, WITHIN THIRTY (30) DAYS
    12  FROM THE RECEIPT OF THE PLAN, MAKE NONBINDING RECOMMENDATIONS
    13  FOR ALTERNATIVE UTILIZATION OF THE GRANT FUNDS.
    14     (5)  NO LATER THAN FEBRUARY 1, 2005, AND FEBRUARY 1 OF EACH
    15  YEAR THEREAFTER, THE DEPARTMENT SHALL SUBMIT A REPORT TO THE
    16  MAJORITY AND MINORITY CHAIRS OF THE APPROPRIATIONS AND EDUCATION
    17  COMMITTEES OF THE SENATE AND TO THE MAJORITY AND MINORITY CHAIRS
    18  OF THE APPROPRIATIONS AND EDUCATION COMMITTEES OF THE HOUSE OF
    19  REPRESENTATIVES SUMMARIZING THE OPERATION OF THE PROGRAM FOR
    20  THAT FISCAL YEAR. THE REPORT SHALL INCLUDE:
    21     (I)  A DESCRIPTION OF THE OPERATION OF THE PROGRAM.
    22     (II)  A SUMMARY OF THE TOTAL AMOUNT OF GRANT FUNDS PAID TO
    23  SCHOOL DISTRICTS.
    24     (III)  A SUMMARY OF THE USES OF GRANT FUNDS TO SCHOOL
    25  DISTRICTS.
    26     (IV)  AN IDENTIFICATION OF THE NUMBER OF SCHOOL DISTRICTS
    27  THAT USED GRANT FUNDS FOR EACH OF THE PROGRAMS OR ACTIVITIES
    28  UNDER SUBSECTION (B).
    29     (V)  A LISTING OF EACH SCHOOL DISTRICT AND THE PROGRAM OR
    30  ACTIVITY UNDER SUBSECTION (B) FOR WHICH THE GRANT FUNDS WERE
    20030S0080B1341                 - 74 -     

     1  USED.
     2     (VI)  AN IDENTIFICATION OF THE NUMBER OF SCHOOL DISTRICTS
     3  THAT USED GRANT FUNDS TO ESTABLISH, MAINTAIN OR EXPAND THE
     4  PROGRAM OR ACTIVITY FOR WHICH THE GRANT FUNDS WERE USED.
     5     (VII)  A LISTING OF EACH SCHOOL DISTRICT AND WHETHER THE
     6  GRANT FUNDS WERE USED TO ESTABLISH, MAINTAIN OR EXPAND THE
     7  PROGRAM OR ACTIVITY FOR WHICH THE GRANT FUNDS WERE USED.
     8     (D)  DURING THE 2004-2005 SCHOOL YEAR, THE DEPARTMENT SHALL
     9  PAY TO EACH SCHOOL DISTRICT A PENNSYLVANIA ACCOUNTABILITY GRANT
    10  EQUAL TO THE SUM OF THE AMOUNTS CALCULATED UNDER PARAGRAPHS (1)
    11  AND (2) AS FOLLOWS:
    12     (1)  EACH SCHOOL DISTRICT SHALL RECEIVE AN AMOUNT BASED ON
    13  THE PERCENTAGE OF ITS STUDENTS SCORING BELOW PROFICIENT ON THE
    14  PSSA TESTS, CALCULATED AS FOLLOWS:
    15     (I)  DIVIDE THE NUMBER OF PSSA TESTS ADMINISTERED IN THE
    16  SCHOOL DISTRICT ON WHICH STUDENTS SCORED BELOW PROFICIENT IN
    17  READING OR MATHEMATICS DURING THE 2002-2003 SCHOOL YEAR BY THE
    18  TOTAL NUMBER OF PSSA TESTS SCORED IN READING AND MATHEMATICS IN
    19  THE SCHOOL DISTRICT DURING THE 2002-2003 SCHOOL YEAR.
    20     (II)  MULTIPLY THE QUOTIENT FROM SUBPARAGRAPH (I) BY THE
    21  AVERAGE DAILY MEMBERSHIP OF THE SCHOOL DISTRICT FOR THE 2002-
    22  2003 SCHOOL YEAR.
    23     (III)  MULTIPLY THE PRODUCT FROM SUBPARAGRAPH (II) BY THE
    24  MARKET VALUE/INCOME AID RATIO OF THE SCHOOL DISTRICT FOR THE
    25  2003-2004 SCHOOL YEAR.
    26     (IV)  MULTIPLY THE PRODUCT FROM SUBPARAGRAPH (III) BY ONE
    27  HUNDRED THIRTY-ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS
    28  ($131,250,000).
    29     (V)  DIVIDE THE PRODUCT FROM SUBPARAGRAPH (IV) BY THE SUM OF
    30  THE PRODUCTS OF SUBPARAGRAPH (III) FOR ALL SCHOOL DISTRICTS.
    20030S0080B1341                 - 75 -     

     1     (2)  EACH SCHOOL DISTRICT SHALL RECEIVE AN AMOUNT BASED ON
     2  THE PERCENTAGE OF ITS STUDENTS SCORING AT OR ABOVE PROFICIENT ON
     3  THE PSSA TESTS, CALCULATED AS FOLLOWS:
     4     (I)  DIVIDE THE NUMBER OF PSSA TESTS ADMINISTERED IN THE
     5  SCHOOL DISTRICT ON WHICH STUDENTS SCORED AT OR ABOVE PROFICIENT
     6  IN READING OR MATHEMATICS DURING THE 2002-2003 SCHOOL YEAR BY
     7  THE TOTAL NUMBER OF PSSA TESTS SCORED IN READING AND MATHEMATICS
     8  IN THE SCHOOL DISTRICT DURING THE 2002-2003 SCHOOL YEAR.
     9     (II)  MULTIPLY THE QUOTIENT FROM SUBPARAGRAPH (I) BY THE
    10  AVERAGE DAILY MEMBERSHIP OF THE SCHOOL DISTRICT FOR THE 2002-
    11  2003 SCHOOL YEAR.
    12     (III)  MULTIPLY THE PRODUCT FROM SUBPARAGRAPH (II) BY THE
    13  MARKET VALUE/INCOME AID RATIO OF THE SCHOOL DISTRICT FOR THE
    14  2003-2004 SCHOOL YEAR.
    15     (IV)  MULTIPLY THE PRODUCT FROM SUBPARAGRAPH (III) BY FORTY-
    16  THREE MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS
    17  ($43,750,000).
    18     (V)  DIVIDE THE PRODUCT FROM SUBPARAGRAPH (IV) BY THE SUM OF
    19  THE PRODUCTS OF SUBPARAGRAPH (III) FOR ALL SCHOOL DISTRICTS.
    20     (3)  GRANTS AWARDED UNDER THIS SECTION SHALL BE PAID TO
    21  SCHOOL DISTRICTS ON THE LAST THURSDAY OF JULY.
    22     (E)  (1)  THE DEPARTMENT SHALL ESTABLISH REPORTING PROCEDURES
    23  AND AUDITING GUIDELINES TO ENSURE THAT GRANT FUNDS ARE UTILIZED
    24  IN ACCORDANCE WITH SUBSECTION (B).
    25     (2)  A SCHOOL DISTRICT SHALL MAINTAIN SEPARATE ACCOUNTS IN
    26  ITS BUDGET TO FACILITATE MONITORING THE USE OF THE GRANT FUNDS.
    27     (3)  IN NO CASE SHALL A SCHOOL DISTRICT USE GRANT FUNDS FOR
    28  ADMINISTRATIVE COSTS AS DEFINED BY THE DEPARTMENT.
    29     (4)  THE DEPARTMENT SHALL REDUCE THE AMOUNT OF A STATE
    30  SUBSIDY PAYMENT TO A SCHOOL DISTRICT BY THE AMOUNT OF ANY GRANT
    20030S0080B1341                 - 76 -     

     1  FUNDS PROVIDED UNDER THIS SECTION IF THE SCHOOL DISTRICT DOES
     2  NOT UTILIZE THE GRANT FUNDS IN ACCORDANCE WITH SUBSECTION (B)
     3  AND THE ACCOUNTABILITY GRANT PLAN SUBMITTED PURSUANT TO
     4  SUBSECTION (D).
     5     (5)  NO GRANT FUNDS MAY BE USED DIRECTLY TO INCREASE SALARIES
     6  EXCEPT AS PROVIDED FOR IN SUBSECTION (B)(10).
     7     (6)  NO SCHOOL DISTRICT MAY PLACE GRANT FUNDS RECEIVED UNDER
     8  THIS SECTION IN A RESERVE ACCOUNT.
     9     (F)  AS USED IN THIS SECTION, THE FOLLOWING WORDS AND PHRASES
    10  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SUBSECTION:
    11     "APPLIED KNOWLEDGE."  INFORMATION TECHNOLOGY, COMPUTER
    12  EQUIPMENT, EDUCATION SOFTWARE AND RELATED ADVANCED TECHNOLOGIES
    13  NECESSARY TO INCREASE STUDENTS' ACCESS TO WORLDWIDE INFORMATION
    14  AND THEIR EXPERTISE IN THIS REGARD.
    15     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    16  COMMONWEALTH.
    17     "GRANT."  A PENNSYLVANIA ACCOUNTABILITY GRANT AWARDED UNDER
    18  THIS SECTION.
    19     "HIGHLY QUALIFIED."  A HIGHLY QUALIFIED ELEMENTARY TEACHER OR
    20  A HIGHLY QUALIFIED MIDDLE OR SECONDARY TEACHER AS DEFINED IN 22
    21  PA. CODE § 403.2 (RELATING TO DEFINITIONS).
    22     "SCIENCE."  A CURRICULAR OFFERING IN SUPPORT OF THE SCIENCE
    23  AND TECHNOLOGY CONTENT AREA AS DEFINED IN 22 PA. CODE § 4.12
    24  (RELATING TO ACADEMIC STANDARDS).
    25     SECTION 36.  THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
    26                           ARTICLE XXV-A
    27                KEYSTONE EDUCATIONAL ACCOUNTABILITY
    28  SECTION 2501-A.  SCOPE.
    29     THIS ARTICLE DEALS WITH EDUCATIONAL ACCOUNTABILITY.
    30  SECTION 2502-A.  PURPOSE.
    20030S0080B1341                 - 77 -     

     1     THE PURPOSE OF THIS ARTICLE IS TO PUT IN PLACE AN ASSESSMENT
     2  SYSTEM AIMED AT IMPROVING SCHOOL DISTRICT MANAGEMENT PRACTICES
     3  AND USE OF RESOURCES, AS WELL AS TO IDENTIFY POTENTIAL COST
     4  SAVINGS, BY PROVIDING FOR THE ESTABLISHMENT OF A SERIES OF BEST
     5  PRACTICES COVERING A BROAD RANGE OF SCHOOL DISTRICT EDUCATIONAL
     6  AND OPERATIONAL PROGRAMS AND SERVICES AS STANDARDS FOR A
     7  PERIODIC FINANCIAL MANAGEMENT PRACTICES REVIEW OF SCHOOL
     8  DISTRICTS IN THIS COMMONWEALTH. THE REVIEWS ARE INTENDED TO:
     9         (1)  INCREASE PUBLIC CONFIDENCE IN AND SUPPORT FOR SCHOOL
    10     DISTRICTS THAT DEMONSTRATE EFFICIENT USE OF TAXPAYER
    11     RESOURCES.
    12         (2)  ENCOURAGE COST SAVINGS.
    13         (3)  LINK FINANCIAL PLANNING AND BUDGETING TO DISTRICT
    14     PRIORITIES, INCLUDING STUDENT PERFORMANCE.
    15         (4)  IMPROVE SCHOOL DISTRICT MANAGEMENT AND USE OF
    16     RESOURCES.
    17  SECTION 2503-A.  DEFINITIONS.
    18     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    19  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    20  CONTEXT CLEARLY INDICATES OTHERWISE:
    21     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    22  COMMONWEALTH.
    23     "REVIEW."  THE BEST FINANCIAL MANAGEMENT PRACTICES REVIEW
    24  ESTABLISHED BY THIS ARTICLE.
    25     "SCHOOL BOARD."  A BOARD OF SCHOOL DIRECTORS OF A SCHOOL
    26  DISTRICT.
    27     "SECRETARY."  THE SECRETARY OF EDUCATION OF THE COMMONWEALTH.
    28     "STANDARDS."  THE BEST FINANCIAL MANAGEMENT PRACTICES
    29  STANDARDS ESTABLISHED BY THE SECRETARY OF EDUCATION AND
    30  PROMULGATED BY THE STATE BOARD OF EDUCATION PURSUANT TO THIS
    20030S0080B1341                 - 78 -     

     1  ARTICLE.
     2     "STATE BOARD."  THE STATE BOARD OF EDUCATION.
     3     "TEAM."  THE LOCAL FINANCIAL MANAGEMENT ADVISORY TEAM
     4  ESTABLISHED PURSUANT TO SECTION 2508-A.
     5  SECTION 2504-A.  ESTABLISHMENT.
     6     (A)  REVIEW SYSTEM.--THE DEPARTMENT, IN CONSULTATION WITH
     7  STAKEHOLDERS AS SET FORTH IN SUBSECTION (D), SHALL DEVELOP A
     8  SYSTEM FOR REVIEWING THE FINANCIAL MANAGEMENT PRACTICES OF
     9  SCHOOL DISTRICTS IN THIS COMMONWEALTH BASED ON A SERIES OF BEST
    10  FINANCIAL MANAGEMENT PRACTICES STANDARDS ADOPTED FOR SPECIFIC
    11  AREAS OF DISTRICT PROGRAMS AND OPERATIONS.
    12     (B)  RESOURCES.--IN DEVELOPING THIS SYSTEM, THE DEPARTMENT
    13  SHALL DRAW ON INFORMATION GARNERED THROUGH THE EXISTING SCHOOL
    14  EVALUATION SERVICES REPORTS.
    15     (C)  ADVISORY COMMITTEE.--
    16         (1)  THERE IS HEREBY ESTABLISHED IN THE DEPARTMENT OF
    17     EDUCATION AN ADVISORY COMMITTEE CONSISTING OF NINE MEMBERS TO
    18     ASSIST THE SECRETARY IN CARRYING OUT THE SECRETARY'S DUTIES
    19     UNDER THIS ARTICLE.
    20         (2)  MEMBERSHIP ON THE COMMITTEE SHALL INCLUDE:
    21             (I)  A REPRESENTATIVE NAMED BY AN ESTABLISHED
    22         RECOGNIZED ASSOCIATION REPRESENTING SCHOOL
    23         ADMINISTRATORS.
    24             (II)  A REPRESENTATIVE NAMED BY AN ESTABLISHED
    25         RECOGNIZED ASSOCIATION REPRESENTING SCHOOL BUSINESS
    26         OFFICIALS.
    27             (III)  ONE REPRESENTATIVE NAMED BY EACH OF THE
    28         ESTABLISHED RECOGNIZED ORGANIZATIONS REPRESENTING THE
    29         STATE'S PUBLIC SCHOOL EMPLOYEES.
    30             (IV)  A REPRESENTATIVE NAMED BY AN ESTABLISHED
    20030S0080B1341                 - 79 -     

     1         RECOGNIZED ORGANIZATION REPRESENTING THE STATE'S BOARDS
     2         OF SCHOOL DIRECTORS.
     3             (V)  A REPRESENTATIVE NAMED BY AN ESTABLISHED
     4         RECOGNIZED ORGANIZATION REPRESENTING THE STATE'S COLLEGES
     5         AND UNIVERSITIES.
     6             (VI)  THREE MEMBERS NAMED BY THE SECRETARY TO
     7         INCLUDE: ONE REPRESENTATIVE FROM AN ESTABLISHED
     8         RECOGNIZED ORGANIZATION REPRESENTING THE STATE'S BUSINESS
     9         COMMUNITY; ONE REPRESENTATIVE OF AN ESTABLISHED
    10         RECOGNIZED TAXPAYER ORGANIZATION AND ONE MEMBER FROM THE
    11         GENERAL PUBLIC.
    12         (3)  THE COMMITTEE SHALL:
    13             (I)  CONSULT WITH THE SECRETARY CONCERNING ANY MATTER
    14         ARISING UNDER THE ADMINISTRATION OF THIS ARTICLE.
    15             (II)  ASSIST THE SECRETARY IN COMPLYING WITH THE
    16         PROVISIONS OF SECTION 2504-A(D) TO INCLUDE PROVIDING
    17         LISTS OF EXPERTS IN VARIOUS AREAS ON WHICH STANDARDS AND
    18         INDICATORS ARE BEING DEVELOPED PURSUANT TO SECTION 2505-
    19         A.
    20     (D)  CONSULTATION.--IN ARRIVING AT ITS BEST PRACTICES AND
    21  THEIR INDICATORS, THE DEPARTMENT SHALL CONSULT WITH A WIDE
    22  VARIETY OF EDUCATIONAL STAKEHOLDERS, INCLUDING SCHOOL DISTRICT
    23  ADMINISTRATORS, SCHOOL BUSINESS OFFICIALS, SCHOOL BOARD MEMBERS,
    24  PROFESSIONAL EDUCATION ORGANIZATIONS, TAXPAYER ORGANIZATIONS,
    25  LEGISLATORS AND LEGISLATIVE STAFF AND THE OFFICE OF THE BUDGET.
    26  ADDITIONALLY, THE DEPARTMENT IS TO SEEK ADVICE FROM CORPORATE
    27  AND GOVERNMENTAL EXPERTS IN FINANCIAL BEST MANAGEMENT PRACTICES
    28  AND OTHER STATES WITH SIMILAR PROGRAMS.
    29     (E)  REGULATIONS.--NO LATER THAN ONE YEAR FROM THE EFFECTIVE
    30  DATE OF THIS ARTICLE, THE SECRETARY SHALL PROMULGATE THE BEST
    20030S0080B1341                 - 80 -     

     1  MANAGEMENT PRACTICES STANDARDS AS REGULATIONS. DUE TO THE URGENT
     2  NEED FOR AN EXPEDITED BUT PUBLIC REGULATORY PROCESS, THE STATE
     3  BOARD, IN ADOPTING THESE REGULATIONS, SHALL FOLLOW THE
     4  PROCEDURES SET FORTH IN THE ACT OF JULY 31, 1968 (P.L.769,
     5  NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW, AND THE
     6  ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY
     7  REVIEW ACT, FOR THE PROMULGATION AND REVIEW OF FINAL-OMITTED
     8  REGULATIONS.
     9  SECTION 2505-A.  BEST FINANCIAL MANAGEMENT PRACTICES STANDARDS.
    10     (A)  GENERAL.--THE BEST FINANCIAL MANAGEMENT PRACTICES
    11  STANDARDS MUST, AT A MINIMUM, INSTILL PUBLIC CONFIDENCE BY
    12  ADDRESSING SCHOOL DISTRICTS' USE OF RESOURCES, IDENTIFYING WAYS
    13  THAT THE DISTRICT MAY SAVE FUNDS AND IMPROVING THE DISTRICTS'
    14  PERFORMANCE AND ACCOUNTABILITY SYSTEMS, INCLUDING PUBLIC
    15  ACCOUNTABILITY.
    16     (B)  INITIAL DEVELOPMENT.--TO ASSURE THESE GOALS ARE MET,
    17  BEST FINANCIAL MANAGEMENT PRACTICES STANDARDS SHALL INITIALLY BE
    18  DEVELOPED FOR THE FOLLOWING AREAS:
    19         (1)  MANAGEMENT STRUCTURES.
    20         (2)  PERFORMANCE ACCOUNTABILITY.
    21         (3)  EDUCATIONAL SERVICE DELIVERY.
    22         (4)  ADMINISTRATIVE AND INSTRUCTIONAL TECHNOLOGY.
    23         (5)  PERSONNEL SYSTEMS AND BENEFITS.
    24         (6)  FACILITIES CONSTRUCTION.
    25         (7)  FACILITIES MAINTENANCE.
    26         (8)  TRANSPORTATION.
    27         (9)  FOOD SERVICE OPERATIONS.
    28         (10)  COST CONTROL SYSTEMS.
    29     (C)  INDICATORS.--TO HELP ASSESS WHETHER A DISTRICT IS
    30  MEETING THESE STANDARDS, THE DEPARTMENT SHALL ALSO DEVELOP
    20030S0080B1341                 - 81 -     

     1  SPECIFIC INDICATORS FOR EACH BEST PRACTICE. INDICATORS WILL
     2  REPRESENT THE KINDS OF ACTIVITIES A DISTRICT WOULD UNDERTAKE IF
     3  THE DISTRICT WERE USING A PARTICULAR BEST PRACTICE.
     4  SECTION 2506-A.  REVIEW PROCESS.
     5     (A)  REVIEW CYCLE.--EVERY SCHOOL DISTRICT SHALL BE SUBJECT TO
     6  A BEST FINANCIAL MANAGEMENT PRACTICES REVIEW ON A CONTINUING
     7  SIX-YEAR CYCLE. ONCE THE SIX-YEAR CYCLE HAS BEEN COMPLETED,
     8  REVIEWS SHALL CONTINUE, BEGINNING AGAIN WITH THOSE DISTRICTS
     9  INCLUDED IN THE FIRST YEAR OF THE CYCLE UNLESS THE DISTRICT HAS
    10  BEEN DEEMED ENTITLED TO A WAIVER PURSUANT TO SECTION 2507-A(D).
    11     (B)  STRATEGIC PLAN.--EACH DISTRICT'S REVIEW SHALL BE
    12  SCHEDULED ONE YEAR PRIOR TO THE DATE REQUIRED FOR FILING OF THE
    13  DISTRICT'S STRATEGIC PLAN UNDER 22 PA. CODE § 4.13 (RELATING TO
    14  STRATEGIC PLANS) OR ITS SUCCESSOR REGULATIONS, EXCEPT THAT ALL
    15  DISTRICTS PLACED ON THE EDUCATION EMPOWERMENT LIST PURSUANT TO
    16  SECTION 1703-B OR DETERMINED TO BE DISTRESSED PURSUANT TO
    17  SECTION 691 AS OF THE EFFECTIVE DATE OF THIS ARTICLE SHALL BE
    18  INCLUDED IN THE INITIAL CYCLE OF SCHOOL DISTRICTS SUBJECT TO A
    19  REVIEW.
    20     (C)  PRIVATE FIRMS.--THE DEPARTMENT IS AUTHORIZED TO CONTRACT
    21  WITH A PRIVATE FIRM OR FIRMS, SELECTED THROUGH A FORMAL REQUEST
    22  FOR PROPOSAL PROCESS TO PERFORM EACH REVIEW, TO THE EXTENT THAT
    23  FUNDS ARE PROVIDED FOR THIS PURPOSE IN THE GENERAL APPROPRIATION
    24  ACT EACH YEAR. ANY PRIVATE FIRM AWARDED A CONTRACT PURSUANT TO
    25  THIS SUBSECTION SHALL HAVE EXPERTISE IN SCHOOL DISTRICT FINANCE.
    26     (D)  SELF-ASSESSMENT.--DISTRICTS SCHEDULED FOR REVIEW SHALL
    27  INITIALLY COMPLETE A SELF-ASSESSMENT INSTRUMENT DEVELOPED BY THE
    28  DEPARTMENT WHICH INDICATES THE SCHOOL DISTRICT'S OWN EVALUATION
    29  OF ITS PERFORMANCE ON EACH BEST PRACTICE. THE SELF-ASSESSMENT
    30  SHALL BEGIN NO LATER THAN 60 DAYS PRIOR TO THE COMMENCEMENT OF
    20030S0080B1341                 - 82 -     

     1  THE REVIEW, WITH THE COMPLETED ASSESSMENT INSTRUMENT AND
     2  SUPPORTING DOCUMENTATION SUBMITTED TO THE DEPARTMENT NO LATER
     3  THAN THE DATE SCHEDULED FOR COMMENCEMENT OF THE REVIEW OF THE
     4  DISTRICT.
     5     (E)  PUBLIC MEETINGS DURING REVIEW.--DURING THE REVIEW THE
     6  DEPARTMENT AND THE FIRM CONDUCTING THE REVIEW SHALL HOLD AT
     7  LEAST ONE ADVERTISED PUBLIC MEETING IN ORDER TO EXPLAIN THE BEST
     8  FINANCIAL MANAGEMENT PRACTICES REVIEW PROCESS AND OBTAIN INPUT
     9  FROM STUDENTS, PARENTS, THE BUSINESS COMMUNITY AND OTHER
    10  DISTRICT RESIDENTS REGARDING THEIR OBSERVATIONS AND
    11  RECOMMENDATIONS ABOUT THE OPERATIONS AND MANAGEMENT OF THE
    12  DISTRICT.
    13     (F)  INFORMATION USED IN REVIEW PROCESS.--IN COMPLETING ITS
    14  REVIEW AND DEVELOPING THE FINAL REPORT, THE REVIEW TEAM SHALL
    15  USE INFORMATION AVAILABLE THROUGH THE EXISTING SCHOOL EVALUATION
    16  SERVICES REPORTS.
    17     (G)  COMPLETION OF REVIEW.--REVIEWS ARE TO BE COMPLETED
    18  WITHIN SIX MONTHS AFTER COMMENCEMENT. A FINAL REPORT OF THE
    19  REVIEW TEAM IS TO BE ISSUED TO THE SECRETARY, THE GOVERNOR, THE
    20  DISTRICT AND ITS SCHOOL BOARD, AND THE CHAIRMAN AND MINORITY
    21  CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE SENATE AND THE
    22  CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE
    23  OF THE HOUSE OF REPRESENTATIVES, THE CHAIRMAN AND MINORITY
    24  CHAIRMAN OF THE EDUCATION COMMITTEE OF THE SENATE AND THE
    25  CHAIRMAN AND MINORITY CHAIRMAN OF THE EDUCATION COMMITTEE OF THE
    26  HOUSE OF REPRESENTATIVES WITHIN 60 DAYS OF COMPLETION OF THE
    27  REVIEW.
    28     (H)  PUBLIC MEETING AFTER REVIEW.--WITHIN 30 DAYS OF RECEIPT
    29  OF THE FINAL REPORT OF THE REVIEW, THE SCHOOL BOARD SHALL HOLD A
    30  PUBLIC MEETING TO SHARE THE RESULTS WITH RESIDENTS OF THE
    20030S0080B1341                 - 83 -     

     1  DISTRICT. SUCH MEETING SHALL COMPLY WITH THE PROVISIONS OF 65
     2  PA.C.S. CH. 7 (RELATING TO OPEN MEETINGS).
     3     (I)  PUBLICATION ON WORLD WIDE WEB.--NO LATER THAN 15 DAYS
     4  AFTER THE ISSUANCE OF THE FINAL REPORT BY THE REVIEW TEAM, THE
     5  DEPARTMENT SHALL PUBLISH THE DISTRICTS' REVIEW ON ITS WORLD WIDE
     6  WEB SITE. PRIOR TO PUBLICATION, THE DEPARTMENT SHALL ISSUE A
     7  PRESS RELEASE INFORMING THE PUBLIC OF THE AVAILABILITY OF THIS
     8  INFORMATION.
     9     (J)  FINDINGS IN FINAL REPORT.--THE FINAL REPORT SHALL
    10  INCLUDE FINDINGS RELATED TO COMPLIANCE WITH THE STANDARDS BASED
    11  ON THEIR ESTABLISHED INDICATORS; POTENTIAL COST SAVINGS;
    12  SUGGESTED RECOMMENDATIONS FOR IMPROVEMENT; AND, FOR THOSE
    13  DISTRICTS FOUND NOT TO BE IN COMPLIANCE WITH THE STANDARDS, A
    14  THREE-YEAR ACTION PLAN FOR ACHIEVING COMPLIANCE. THIS ACTION
    15  PLAN IS TO BE DEVELOPED IN CONJUNCTION WITH OFFICIALS FROM THE
    16  SCHOOL DISTRICT.
    17  SECTION 2507-A.  STATE CERTIFICATION AS A KEYSTONE DISTRICT.
    18     (A)  GENERAL RULE.--A DISTRICT THAT HAS BEEN DETERMINED BY
    19  THE REVIEW TO BE USING THE BEST PRACTICES SHALL BE CERTIFIED BY
    20  THE SECRETARY AS A KEYSTONE DISTRICT. SUCH DESIGNATION IS
    21  EFFECTIVE FOR SIX YEARS FROM THE CERTIFICATION DATE OR UNTIL THE
    22  NEXT REVIEW IS COMPLETED, WHICHEVER IS LATER.
    23     (B)  PUBLICATION OF STATUS.--A DISTRICT SO DESIGNATED IS
    24  AUTHORIZED TO PUBLICIZE ITS STATUS AS A KEYSTONE DISTRICT ON ITS
    25  BUILDINGS AND IN ANY PUBLICATIONS OR CORRESPONDENCE IT DEEMS
    26  APPROPRIATE.
    27     (C)  ANNUAL VERIFICATION.--EXCEPT AS PROVIDED IN SECTION
    28  2510-A, A DISTRICT THAT HAS BEEN CERTIFIED PURSUANT TO THIS
    29  SECTION SHALL ANNUALLY VERIFY TO THE SECRETARY THAT IT HAS MADE
    30  NO CHANGES IN ANY OF ITS PRACTICES AND CONTINUES TO CONFORM TO
    20030S0080B1341                 - 84 -     

     1  THE BEST FINANCIAL MANAGEMENT PRACTICES STANDARDS.
     2     (D)  WAIVER.--A SCHOOL DISTRICT THAT HAS BEEN AWARDED A
     3  CERTIFICATION AS A KEYSTONE DISTRICT AND WHICH HAS MADE ANNUAL
     4  REPORTS PURSUANT TO SUBSECTION (C) SHALL BE GRANTED A WAIVER
     5  FROM THE REQUIREMENT OF UNDERGOING ITS NEXT SCHEDULED REVIEW.
     6  DISTRICTS GRANTED A WAIVER UNDER THIS SUBSECTION ARE NOT
     7  ELIGIBLE FOR WAIVER OF THE REVIEW TO BE CONDUCTED AFTER THE ONE
     8  WHICH WAS WAIVED.
     9  SECTION 2508-A.  FAILURE TO MEET BEST FINANCIAL MANAGEMENT
    10                     PRACTICES STANDARDS.
    11     (A)  ACTION PLAN.--IF THE REPORT PROVIDED FOR IN SECTION
    12  2506-A FINDS THAT THE DISTRICT DOES NOT CONFORM TO THE
    13  STANDARDS, THE REPORT MUST CONTAIN AN ACTION PLAN DETAILING HOW
    14  THE DISTRICT MAY MEET THE STANDARDS WITHIN THREE YEARS.
    15     (B)  FINANCIAL MANAGEMENT ADVISORY TEAM.--NO LESS THAN 60
    16  DAYS FOLLOWING RECEIPT OF THE REPORT, THE SCHOOL BOARD SHALL
    17  ESTABLISH A LOCAL FINANCIAL MANAGEMENT ADVISORY TEAM. THE TEAM
    18  SHALL CONSIST OF 11 MEMBERS AS FOLLOWS:
    19         (1)  ONE MEMBER OF THE SCHOOL BOARD WHO MAY BE THE
    20     PRESIDENT OR A DESIGNATED BOARD MEMBER.
    21         (2)  THE SUPERINTENDENT OF THE DISTRICT.
    22         (3)  THE SCHOOL BUSINESS MANAGER OR THE INDIVIDUAL
    23     RESPONSIBLE FOR THE FISCAL MANAGEMENT OF THE DISTRICT.
    24         (4)  A PRINCIPAL SELECTED BY ALL THE PRINCIPALS IN THE
    25     DISTRICT.
    26         (5)  A TEACHER SELECTED BY ALL THE TEACHERS IN THE
    27     DISTRICT.
    28         (6)  TWO MEMBERS OF THE GENERAL PUBLIC, ONE OF WHOM SHALL
    29     BE A REPRESENTATIVE OF A LOCAL TAXPAYER ORGANIZATION IF ONE
    30     EXISTS IN THE DISTRICT.
    20030S0080B1341                 - 85 -     

     1         (7)  ONE PARENT OF A STUDENT FROM THE DISTRICT.
     2         (8)  TWO LOCAL REPRESENTATIVES OF BUSINESS, AT LEAST ONE
     3     OF WHOM MUST HAVE EXPERIENCE IN BANKING OR FINANCE.
     4         (9)  A LOCAL COMMUNITY LEADER.
     5     (C)  PROCEDURE.--THE SCHOOL BOARD SHALL ESTABLISH PROCEDURES
     6  FOR SELECTING THE PARENT, THE BUSINESS AND COMMUNITY LEADERS AND
     7  MEMBERS OF THE GENERAL PUBLIC IN ORDER TO ENSURE PUBLIC
     8  AWARENESS OF THESE OPENINGS AND SOLICIT INPUT FROM THE
     9  COMMUNITY.
    10     (D)  CHAIRPERSON.--THE TEAM SHALL ELECT A CHAIRPERSON FROM
    11  AMONG ITS MEMBERSHIP AT ITS FIRST MEETING.
    12     (E)  TIME PERIOD.--THE TEAM SHALL BE RESPONSIBLE FOR
    13  IMPLEMENTATION OF THE ACTION PLAN CONTAINED IN THE DISTRICT'S
    14  REPORT WITHIN A THREE-YEAR TIME PERIOD.
    15     (F)  TECHNICAL ADVISORS.--UPON REQUEST, THE DEPARTMENT SHALL
    16  PROVIDE, FROM A LIST ESTABLISHED PURSUANT TO SECTION 2509-A,
    17  SUCH TECHNICAL ADVISORS AS MAY BE NECESSARY TO ASSIST THE TEAM
    18  IN IMPLEMENTING THE ACTION PLAN.
    19     (G)  SECOND REVIEW.--NO LATER THAN THREE YEARS AFTER RECEIPT
    20  OF A REPORT INDICATING THE DISTRICT IS NOT IN COMPLIANCE WITH
    21  THE BEST FINANCIAL MANAGEMENT PRACTICES STANDARDS, OR EARLIER
    22  UPON REQUEST OF THE SCHOOL BOARD, THE DEPARTMENT SHALL CONDUCT A
    23  SECOND REVIEW TO DETERMINE IF THE DISTRICT IS NOW IN COMPLIANCE.
    24  IF THIS SECOND REPORT INDICATES THAT THE DISTRICT IS NOW IN
    25  COMPLIANCE, IT SHALL BE CERTIFIED AS A KEYSTONE DISTRICT
    26  PURSUANT TO SECTION 2507-A AND SHALL FALL UNDER ALL PROVISIONS
    27  OF THAT SECTION WITH THE NEXT REVIEW OF THE DISTRICT TO TAKE
    28  PLACE SIX YEARS FROM THE DATE OF CERTIFICATION.
    29  SECTION 2509-A.  DUTIES OF DEPARTMENT.
    30     (A)  LIST OF EXPERTS.--IN ORDER TO ASSIST THOSE DISTRICTS
    20030S0080B1341                 - 86 -     

     1  THAT DO NOT INITIALLY MEET THE BEST FINANCIAL MANAGEMENT
     2  PRACTICES STANDARDS, THE DEPARTMENT SHALL ESTABLISH A LIST OF
     3  EXPERTS WHO POSSESS KNOWLEDGE AND EXPERIENCE IN SUCH AREAS AS
     4  SCHOOL OR BUSINESS ADMINISTRATION, PUPIL TRANSPORTATION, FOOD
     5  SERVICES MANAGEMENT, BUDGET DEVELOPMENT, FISCAL MANAGEMENT,
     6  HUMAN RESOURCES MANAGEMENT, EDUCATIONAL TECHNOLOGY AND LABOR
     7  RELATIONS.
     8     (B)  TECHNICAL ADVISORS.--UPON REQUEST FROM A SCHOOL BOARD,
     9  THE DEPARTMENT SHALL SEND INTO THE DISTRICT TECHNICAL ADVISORS,
    10  CHOSEN FROM THE LIST ESTABLISHED IN SUBSECTION (A) WITH
    11  EXPERTISE IN THOSE AREAS IDENTIFIED IN THE REPORT AS NOT MEETING
    12  BEST FINANCIAL MANAGEMENT PRACTICES STANDARDS, TO WORK WITH THE
    13  TEAM IN IMPLEMENTING THE DISTRICT'S ACTION PLAN.
    14  SECTION 2510-A.  REVOCATION OF CERTIFICATION.
    15     (A)  GENERAL RULE.--THE SECRETARY MAY REVOKE THE KEYSTONE
    16  DISTRICT CERTIFICATION IF AT ANY TIME IT DETERMINES THAT A
    17  DISTRICT IS NO LONGER COMPLYING WITH THE COMMONWEALTH'S BEST
    18  FINANCIAL MANAGEMENT PRACTICES STANDARDS.
    19     (B)  IMMEDIATE REVOCATION.--ANY DISTRICT CERTIFIED AS A
    20  KEYSTONE DISTRICT WHICH, BEFORE ITS NEXT SCHEDULED REVIEW, IS
    21  DEEMED TO BE DISTRESSED BY THE SECRETARY UNDER SECTION 691 OR IS
    22  PLACED ON THE EDUCATION EMPOWERMENT LIST PROVIDED PURSUANT TO
    23  SECTION 1703-B SHALL IMMEDIATELY HAVE ITS CERTIFICATION REVOKED.
    24  SECTION 2511-A.  COST SAVINGS.
    25     COST SAVINGS RESULTING FROM IMPLEMENTATION OF THE BEST
    26  FINANCIAL PRACTICES MUST BE SPENT AT THE SCHOOL AND CLASSROOM
    27  LEVELS FOR TEACHER PROFESSIONAL DEVELOPMENT, IMPROVING CLASSROOM
    28  FACILITIES, STUDENT SUPPLIES, TEXTBOOKS, CLASSROOM TECHNOLOGY,
    29  SCHOOL SAFETY OR ANY OTHER INSTRUCTIONAL ACTIVITY DIRECTLY
    30  AFFECTING STUDENT PERFORMANCE AND THE LEARNING ENVIRONMENT.
    20030S0080B1341                 - 87 -     

     1     SECTION 37.  SECTION 2603-B(D) OF THE ACT, AMENDED OR ADDED
     2  MARCH 30, 1988 (P.L.321, NO.43) AND JUNE 29, 2002 (P.L.524,
     3  NO.88), IS AMENDED TO READ:
     4     SECTION 2603-B.  POWERS AND DUTIES OF THE BOARD.--* * *
     5     (D)  THE BOARD SHALL ALSO HAVE THE AUTHORITY AND DUTY TO:
     6     (1)  APPROVE OR DISAPPROVE AN APPLICATION FOR THE CREATION OF
     7  A NEW SCHOOL DISTRICT, OR CHANGE IN THE BOUNDARIES OF AN
     8  EXISTING SCHOOL DISTRICT;
     9     (2)  ESTABLISH, WHENEVER DEEMED ADVISABLE, COMMITTEES OF
    10  PROFESSIONAL AND TECHNICAL ADVISORS TO ASSIST THE COUNCILS IN
    11  PERFORMING RESEARCH STUDIES UNDERTAKEN BY THEM;
    12     (3)  MANAGE AND HAVE CUSTODY OF THE STATE SCHOOL FUND;
    13     (4)  (I)  APPLY FOR, RECEIVE AND ADMINISTER, SUBJECT TO ANY
    14  APPLICABLE REGULATIONS OR LAWS OF THE FEDERAL GOVERNMENT OR ANY
    15  AGENCY THEREOF, ANY FEDERAL GRANTS, APPROPRIATIONS, ALLOCATIONS
    16  AND PROGRAMS FOR THE DEVELOPMENT OF ACADEMIC FACILITIES ON
    17  BEHALF OF THE COMMONWEALTH, ANY OF ITS SCHOOL DISTRICTS OR ANY
    18  INSTITUTION OF HIGHER EDUCATION, PUBLIC OR PRIVATE, WITHIN THIS
    19  COMMONWEALTH;
    20     (II)  SUBJECT TO CRITERIA DEVELOPED BY THE SECRETARY OF
    21  EDUCATION AND SUBJECT TO ANY APPLICABLE REGULATIONS OR LAWS OF
    22  THE FEDERAL GOVERNMENT OR ANY AGENCY THEREOF, TO DEVELOP, ALTER,
    23  AMEND AND SUBMIT TO THE FEDERAL GOVERNMENT STATE PLANS FOR
    24  PARTICIPATION IN FEDERAL GRANTS, APPROPRIATIONS, ALLOCATIONS AND
    25  PROGRAMS FOR THE DEVELOPMENT OF ACADEMIC FACILITIES AND TO MAKE
    26  REGULATIONS, CRITERIA, METHODS, FORMS, PROCEDURES AND TO DO ALL
    27  OTHER THINGS WHICH MAY BE NECESSARY TO MAKE POSSIBLE THE
    28  PARTICIPATION OF THE COMMONWEALTH IN SUCH FEDERAL GRANTS,
    29  APPROPRIATIONS, ALLOCATIONS AND PROGRAMS FOR THE DEVELOPMENT OF
    30  ACADEMIC FACILITIES;
    20030S0080B1341                 - 88 -     

     1     (III)  HOLD HEARINGS, ISSUE SUBPOENAS AND RENDER DECISIONS AS
     2  TO THE PRIORITY ASSIGNED TO ANY PROJECT, OR AS TO ANY OTHER
     3  MATTER OR DETERMINATION AFFECTING ANY APPLICANT FOR FEDERAL
     4  GRANTS, APPROPRIATIONS, ALLOCATIONS AND PROGRAMS FOR THE
     5  DEVELOPMENT OF ACADEMIC FACILITIES;
     6     (IV)  ADOPT RULES OR PROCEDURES AND PRESCRIBE REGULATIONS FOR
     7  THE SUBMISSION TO IT OF ALL MATTERS WITHIN ITS JURISDICTION; AND
     8     (V)  SUBMIT, ANNUALLY, TO THE GOVERNOR, ON OR BEFORE THE
     9  FIRST MONDAY OF DECEMBER, A REPORT OF ITS PROCEEDINGS DURING
    10  THAT YEAR, TOGETHER WITH SUCH RECOMMENDATIONS AS THE BOARD SHALL
    11  DEEM NECESSARY;
    12     (5)  ADOPT POLICIES UNDER WHICH THE SECRETARY OF EDUCATION
    13  SHALL APPROVE OR DISAPPROVE ANY ACTION OF A STATE-OWNED
    14  UNIVERSITY, COMMUNITY COLLEGE OR STATE-RELATED OR STATE-AIDED
    15  COLLEGE OR UNIVERSITY IN ESTABLISHING ADDITIONAL BRANCHES OR
    16  CAMPUSES, OR IN DISCONTINUING BRANCHES OR CAMPUSES;
    17     (6)  ADOPT POLICIES UNDER WHICH THE SECRETARY OF EDUCATION
    18  SHALL APPROVE OR DISAPPROVE ANY ACTION OF A STATE-OWNED
    19  UNIVERSITY, COMMUNITY COLLEGE OR STATE-RELATED OR STATE-AIDED
    20  COLLEGE OR UNIVERSITY IN ESTABLISHING NEW PROFESSIONAL SCHOOLS
    21  OR UPPER DIVISION PROGRAMS BY TWO (2) YEAR INSTITUTIONS;
    22     (7)  ADOPT POLICIES UNDER WHICH THE SECRETARY OF EDUCATION
    23  SHALL APPROVE OR DISAPPROVE APPLICATIONS BY TWO (2) YEAR
    24  INSTITUTIONS TO BECOME FOUR (4) YEAR INSTITUTIONS;
    25     (8)  ADOPT POLICIES UNDER WHICH THE SECRETARY OF EDUCATION
    26  SHALL APPROVE OR DISAPPROVE THE REQUEST OF ANY PRIVATE
    27  INSTITUTION OF HIGHER EDUCATION FOR ADMISSION TO STATE-RELATED
    28  OR STATE-AIDED STATUS, OR FOR ELIGIBILITY FOR OTHER STATE
    29  FINANCIAL SUPPORT; AND
    30     (9)  REQUIRE THE SUBMISSION OF LONG-RANGE PLANS FROM ALL
    20030S0080B1341                 - 89 -     

     1  PUBLIC AND PRIVATE INSTITUTIONS OF HIGHER EDUCATION AT THE TIMES
     2  AND IN THE FORM REQUESTED BY THE BOARD. SUCH DOCUMENTS SHALL BE
     3  REVIEWED BY THE COUNCIL OF HIGHER EDUCATION AND THE BOARD IN THE
     4  DEVELOPMENT OF A MASTER PLAN FOR HIGHER EDUCATION AS PROVIDED IN
     5  SUBSECTION (H) AND SECTION 2604-B(C)(1).
     6     (10)  (I)  APPROVE OR DISAPPROVE STANDARDS PROPOSED BY THE
     7  DEPARTMENT IN ORDER TO COMPLY WITH THE PROVISIONS OF THE NO
     8  CHILD LEFT BEHIND ACT OF 2001 [(PUBLIC LAW 107-110, 115 STAT.
     9  1425)] TO MAINTAIN THE ELIGIBILITY OF THIS COMMONWEALTH TO
    10  RECEIVE FEDERAL FUNDING FOR EDUCATION PROGRAMS. THE BOARD SHALL
    11  APPROVE OR DISAPPROVE THE STANDARDS WITHIN 30 DAYS OF SUBMISSION
    12  TO THE BOARD'S OFFICE OR AT ITS NEXT SCHEDULED MEETING,
    13  WHICHEVER IS SOONER. FAILURE OF THE BOARD TO APPROVE OR
    14  DISAPPROVE THE STANDARDS WITHIN THE TIME ESTABLISHED UNDER THIS
    15  SECTION SHALL BE DEEMED AN APPROVAL OF THE STANDARDS.
    16     (II)  STANDARDS PROMULGATED UNDER THIS SECTION SHALL BE
    17  DEPOSITED WITH THE PENNSYLVANIA BULLETIN FOR PUBLICATION.
    18     (III)  THESE STANDARDS SHALL BE EXEMPT FROM:
    19     (A)  SECTIONS 201 THROUGH 205 OF THE ACT OF JULY 31, 1968
    20  (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS
    21  LAW.
    22     [(B)  SECTION 204(B) OF THE ACT OF OCTOBER 15, 1980 (P.L.950,
    23  NO.164), KNOWN AS THE "COMMONWEALTH ATTORNEYS ACT."]
    24     (C)  THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE
    25  "REGULATORY REVIEW ACT."
    26     (D)  THIS SUBCLAUSE SHALL EXPIRE [JUNE 30, 2003.] JUNE 30,
    27  2004.
    28     (IV)  (A)  PRIOR TO ITS DEPOSIT WITH THE LEGISLATIVE
    29  REFERENCE BUREAU AS REQUIRED BY SECTION 204(B) OF THE ACT OF
    30  OCTOBER 15, 1980 (P.L.950, NO.164), KNOWN AS THE "COMMONWEALTH
    20030S0080B1341                 - 90 -     

     1  ATTORNEYS ACT," THE BOARD SHALL SUBMIT ANY STANDARD UNDER THIS
     2  PARAGRAPH TO THE ATTORNEY GENERAL. THE ATTORNEY GENERAL SHALL
     3  DETERMINE WHETHER ACTION ON THE STANDARD IS REQUIRED TO COMPLY
     4  WITH THE PROVISIONS OF THE NO CHILD LEFT BEHIND ACT OF 2001 TO
     5  MAINTAIN THE ELIGIBILITY OF THIS COMMONWEALTH TO RECEIVE FEDERAL
     6  FUNDING FOR EDUCATION PROGRAMS AND SHALL TRANSMIT SUCH
     7  DETERMINATION TO THE BOARD.
     8     (B)  WHERE THE ATTORNEY GENERAL DETERMINES THAT ACTION ON THE
     9  STANDARD IS NOT REQUIRED TO COMPLY WITH THE PROVISIONS OF THE NO
    10  CHILD LEFT BEHIND ACT OF 2001 TO MAINTAIN THE ELIGIBILITY OF THE
    11  COMMONWEALTH TO RECEIVE FEDERAL FUNDING FOR EDUCATION PROGRAMS,
    12  THE BOARD MAY NOT TAKE ACTION ON THE STANDARD UNDER THIS
    13  PARAGRAPH.
    14     (C)  WHERE THE ATTORNEY GENERAL FAILS TO MAKE A DETERMINATION
    15  WITHIN TEN (10) DAYS OF THE BOARD'S SUBMISSION OF THE STANDARD
    16  UNDER THIS SUBCLAUSE, ACTION ON THE STANDARD SHALL BE DEEMED TO
    17  BE REQUIRED TO COMPLY WITH THE PROVISIONS OF THE NO CHILD LEFT
    18  BEHIND ACT OF 2001 TO MAINTAIN THE ELIGIBILITY OF THE
    19  COMMONWEALTH TO RECEIVE FEDERAL FUNDING FOR EDUCATION PROGRAMS.
    20     (D)  THIS SUBCLAUSE SHALL EXPIRE JUNE 30, 2004.
    21     * * *
    22     SECTION 38.  THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
    23                           ARTICLE XXVI-I
    24                   TEACHER RECRUITMENT ASSISTANCE
    25  SECTION 2601-I.  DEFINITIONS.
    26     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    27  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    28  CONTEXT CLEARLY INDICATES OTHERWISE:
    29     "AGENCY."  THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE
    30  AGENCY.
    20030S0080B1341                 - 91 -     

     1     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
     2  COMMONWEALTH.
     3     "DESIGNATED COMMONWEALTH RURAL OR ACADEMIC IMPROVEMENT SCHOOL
     4  DISTRICT."  AN ELIGIBLE RURAL OR ACADEMIC IMPROVEMENT PUBLIC
     5  SCHOOL DISTRICT THAT THE SECRETARY OF EDUCATION HAS CERTIFIED AS
     6  HAVING A NEED FOR TEACHER LOAN FORGIVENESS ASSISTANCE BECAUSE OF
     7  DIFFICULTY IN ATTRACTING QUALIFIED TEACHERS.
     8     "ELIGIBLE ACADEMIC SCHOOL IMPROVEMENT PUBLIC SCHOOL
     9  DISTRICT."  A PUBLIC SCHOOL DISTRICT THAT:
    10         (1)  HAS TWO OR MORE SCHOOLS IDENTIFIED FOR IMPROVEMENT
    11     OR CORRECTIVE ACTION UNDER SECTION 1116(C)(3) OR (10) OF THE
    12     NO CHILD LEFT BEHIND ACT OF 2001;
    13         (2)  HAS BEEN CERTIFIED AS DISTRESSED UNDER SECTION 691;
    14         (3)  HAS BEEN CERTIFIED AS AN EDUCATION EMPOWERMENT
    15     DISTRICT UNDER SECTION 1705-B OR 1707-B; OR
    16         (4)  HAS BEEN PLACED ON AN EDUCATION EMPOWERMENT LIST
    17     UNDER SECTION 1703-B.
    18     "ELIGIBLE RURAL PUBLIC SCHOOL DISTRICT."  A PUBLIC SCHOOL
    19  DISTRICT THAT HAS A POPULATION OF LESS THAN 300 PER SQUARE MILE
    20  AND EITHER:
    21         (1)  MORE THAN 8% OF THE PUPILS IN AVERAGE DAILY
    22     MEMBERSHIP ARE LOW-INCOME PUPILS AS DEFINED IN SECTION
    23     2502.11; OR
    24         (2)  THE MARKET VALUE/INCOME AID RATIO AS DEFINED IN
    25     SECTION 2501 IS GREATER THAN SEVEN-TENTHS.
    26     "QUALIFIED APPLICANT."  A PERSON WHO MEETS ALL OF THE
    27  FOLLOWING CRITERIA:
    28         (1)  IS CERTIFIED BY THE DEPARTMENT OF EDUCATION TO
    29     TEACH.
    30         (2)  IS IN THE FIRST YEAR OF FULL-TIME TEACHING.
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     1         (3)  IS TEACHING IN A DESIGNATED COMMONWEALTH RURAL OR
     2     ACADEMIC IMPROVEMENT SCHOOL DISTRICT.
     3         (4)  HAS BORROWED THROUGH AND HAS A CURRENT OUTSTANDING
     4     BALANCE WITH THE AGENCY-GUARANTEED STAFFORD OR CONSOLIDATION
     5     LOAN PROGRAMS.
     6     "SECRETARY."  THE SECRETARY OF EDUCATION OF THE COMMONWEALTH.
     7  SECTION 2602-I.  TEACHER RECRUITMENT ASSISTANCE PROGRAM.
     8     (A)  PURPOSE.--THE PROGRAM SHALL PROVIDE ASSISTANCE TO
     9  DESIGNATED COMMONWEALTH RURAL OR ACADEMIC IMPROVEMENT PUBLIC
    10  SCHOOL DISTRICTS IN RECRUITING TEACHERS THROUGH A PROGRAM OF
    11  TEACHER LOAN FORGIVENESS AS PROVIDED FOR IN THIS ARTICLE.
    12     (B)  ADMINISTRATION.--THE AGENCY SHALL ADMINISTER THE PROGRAM
    13  AND ADOPT SUCH REGULATIONS, POLICIES, PROCEDURES AND FORMS AS
    14  ARE NECESSARY AND NOT INCONSISTENT WITH THE PROVISIONS OF THIS
    15  ARTICLE.
    16  SECTION 2603-I.  TEACHER RECRUITMENT ASSISTANCE.
    17     (A)  GENERAL RULE.--A QUALIFIED APPLICANT WHO IS SELECTED IN
    18  ACCORDANCE WITH THIS ARTICLE SHALL BE ELIGIBLE FOR AN AWARD BY
    19  THE AGENCY OF A PORTION OF THE DEBT INCURRED BY THE APPLICANT
    20  THROUGH THE AGENCY-GUARANTEED STAFFORD OR CONSOLIDATION LOAN
    21  PROGRAMS FOR THE EDUCATION NECESSARY TO BE CERTIFIED TO TEACH IN
    22  THIS COMMONWEALTH.
    23     (B)  FORGIVENESS OF LOAN.--FOR EACH ACADEMIC YEAR THAT THE
    24  ELIGIBLE APPLICANT IS A FULL-TIME TEACHER IN A DESIGNATED
    25  COMMONWEALTH RURAL OR ACADEMIC IMPROVEMENT PUBLIC SCHOOL
    26  DISTRICT, THE AGENCY MAY FORGIVE A PROPORTIONAL PART OF THE
    27  APPLICANT'S LOAN OVER FOUR YEARS OF FULL-TIME TEACHING. NO MORE
    28  THAN $2,500 SHALL BE FORGIVEN IN ANY YEAR AND NO MORE THAN
    29  $10,000 SHALL BE FORGIVEN FOR ANY ELIGIBLE APPLICANT.
    30     (C)  PAYMENTS.--SHALL BE MADE IN ACCORDANCE WITH PROCEDURES
    20030S0080B1341                 - 93 -     

     1  ESTABLISHED BY THE AGENCY.
     2  SECTION 2604-I.  LOAN FORGIVENESS AWARDS.
     3     RECIPIENTS OF TEACHER RECRUITMENT ASSISTANCE AWARDS SHALL BE
     4  THOSE TEACHERS WHO ARE CERTIFIED BY THE DEPARTMENT AND WHO HAVE
     5  RECEIVED A SATISFACTORY RATING BY THE DISTRICT FOR THE ACADEMIC
     6  YEAR. EACH TEACHER SHALL BE REQUIRED TO SUBMIT SUCH
     7  DOCUMENTATION OF CONTINUED ELIGIBILITY AS THE AGENCY MAY
     8  REQUIRE.
     9     SECTION 39.  SECTION 2416 OF THE ACT OF APRIL 9, 1929
    10  (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929, IS
    11  REPEALED INSOFAR AS IT IS INCONSISTENT WITH THIS ACT.
    12     SECTION 40.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.












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