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        PRIOR PRINTER'S NOS. 514, 1367, 1415,         PRINTER'S NO. 1913
        1817, 1910

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 494 Session of 1997


        INTRODUCED BY RHOADES, GERLACH, STAPLETON, PICCOLA, THOMPSON,
           HELFRICK, STOUT, MOWERY, KITCHEN, SALVATORE, DELP,
           AFFLERBACH, EARLL, HART AND MURPHY, FEBRUARY 12, 1997

        SENATE AMENDMENTS TO HOUSE AMENDMENTS, APRIL 21, 1998

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An  <--
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," providing for construction,
     6     remodeling or alteration of school buildings; authorizing
     7     school districts to impose dress codes and to require
     8     students to wear standard dress or uniforms; providing for a
     9     program of residential education for at-risk secondary
    10     students; establishing the Pennsylvania Residential Education
    11     Board and the Residential Education Support Fund; and making
    12     appropriations.
    13  AMENDING THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), ENTITLED "AN  <--
    14     ACT RELATING TO THE PUBLIC SCHOOL SYSTEM, INCLUDING CERTAIN
    15     PROVISIONS APPLICABLE AS WELL TO PRIVATE AND PAROCHIAL
    16     SCHOOLS; AMENDING, REVISING, CONSOLIDATING AND CHANGING THE
    17     LAWS RELATING THERETO," FURTHER PROVIDING FOR AUXILIARY
    18     SERVICES AND FOR THE DEFINITIONS OF "SCHOOL YEAR" AND
    19     "CHILDREN IN LOW-INCOME FAMILIES"; AUTHORIZING SCHOOL
    20     DISTRICTS TO IMPOSE DRESS CODES AND REQUIRE STUDENTS TO WEAR
    21     STANDARD DRESS OR UNIFORMS; FURTHER PROVIDING FOR DISTRESSED
    22     SCHOOL DISTRICTS AND FOR BASIC EDUCATION GRANTS AND HIGHER
    23     EDUCATION GRANTS FOR THE LINK-TO-LEARN PROGRAM; PROVIDING FOR
    24     CERTAIN PROCEDURES RELATING TO MANAGEMENT OF DISTRESSED FIRST
    25     CLASS SCHOOL DISTRICTS AND FOR TECHNOLOGY GRANTS TO NONPUBLIC
    26     AND PRIVATE SCHOOLS; FURTHER PROVIDING FOR COMMUNITY COLLEGE
    27     REIMBURSEMENTS, SMALL SCHOOL DISTRICT ASSISTANCE, BASIC
    28     EDUCATION FUNDING PAYMENTS TO INTERMEDIATE UNITS, SPECIAL
    29     EDUCATION PAYMENTS TO SCHOOL DISTRICTS, SCHOOL PERFORMANCE
    30     INCENTIVES AND CHARTER SCHOOL GRANTS; PROVIDING FOR COMMUNITY
    31     EDUCATION COUNCILS, FOR THE OPERATION OF THE STATE SYSTEM OF
    32     HIGHER EDUCATION, FOR PAYMENTS ON ACCOUNT OF TRANSPORTATION


     1     OF NONPUBLIC SCHOOL PUPILS, FOR TEMPORARY SPECIAL AID TO
     2     SCHOOL DISTRICTS SUFFERING LOSS OF TAX REVENUE DUE TO
     3     REDUCTION IN ASSESSED VALUATION OF TAXABLE PROPERTY AND FOR
     4     INCENTIVES FOR ADMINISTRATIVE AND INSTRUCTIONAL
     5     CONSOLIDATION; AND MAKING REPEALS.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  The act of March 10, 1949 (P.L.30, No.14), known   <--
     9  as the Public School Code of 1949, is amended by adding sections
    10  to read:
    11     Section 733.1.  Construction, Remodeling or Alteration of
    12  School Buildings.--The State Board of Education shall promulgate
    13  regulations to assure that, to the maximum feasible extent, the
    14  construction, remodeling or alteration of public school
    15  buildings is conducted in a manner which protects the students,
    16  staff and public from the unreasonable risk of accidents and
    17  prevents the unreasonable risk of their exposure to dangerous
    18  levels of toxic and noxious dust, fumes, vapors, gases, fibers,
    19  fogs, mist, and other atmospheric impurities. In promulgating
    20  the regulations, the State Board of Education shall consult with
    21  the Department of Environmental Protection and the Department of
    22  Labor and Industry and shall hold at least one public hearing.
    23     Section 1317.3.  Uniforms.--(a)  School officials in any
    24  school entity may impose limitations on dress and may require
    25  pupils to wear standard dress or uniforms. Such policies may be
    26  districtwide or may be on a school building basis.
    27     (b)  The Commonwealth shall reimburse those districts or the
    28  governing board of any public school entity located within this
    29  Commonwealth which have provided free or otherwise subsidized
    30  the cost of uniforms for those students who are eligible for
    31  either Temporary Assistance to Needy Families (TANF) or the free
    32  and reduced price lunch program. Reimbursement limitations and
    19970S0494B1913                  - 2 -

     1  reimbursement application procedures shall be established by the
     2  Secretary of Education.
     3     (c)  Payments to school districts shall be calculated by
     4  multiplying the district aid ratio by the amount of
     5  reimbursement sought by the district. Payments to the governing
     6  board of any public school entity located within this
     7  Commonwealth shall be calculated by multiplying the aid ratio of
     8  the district in which the school is physically located by the
     9  amount of reimbursement sought by the school.
    10     (d)  The provisions of this section shall not apply to home
    11  education programs established under section 1327.1 of this act.
    12     (e)  In no case shall the reimbursement to the school
    13  district or governing body of any school exceed eighty dollars
    14  ($80) per student.
    15     (f)  A school district or governing body applying for
    16  reimbursement under this section shall be eligible for
    17  reimbursement for only the first year that uniforms are required
    18  in any school or school building within a school district,
    19  including the first year any additional building within a school
    20  district adopts a required uniform policy. In no case may a
    21  school district or governing body receive reimbursement for a
    22  school or school building after the first year following the
    23  adoption of the uniform policy in that school or school
    24  building.
    25     Section 2.  The act is amended by adding an article to read:
    26                           ARTICLE XVI-A.
    27                       RESIDENTIAL EDUCATION.
    28     Section 1601-A.  Short Title.--This article shall be known
    29  and may be cited as the Residential Education Act.
    30     Section 1602-A.  Definitions.--As used in this article:
    19970S0494B1913                  - 3 -

     1     "AFDC" shall mean the Aid to Families with Dependent Children
     2  provisions of Title IV of the Social Security Act (40 Stat. 620,
     3  42 U.S.C. § 601 et seq.).
     4     "Board" shall mean the Pennsylvania Residential Education
     5  Board established by this article.
     6     "Department" shall mean the Department of Education of the
     7  Commonwealth.
     8     "Disruptive student" shall mean a student who poses a clear
     9  threat to the safety and welfare of other students or the school
    10  staff, who creates an unsafe school environment or whose
    11  behavior materially interferes with the learning of other
    12  students or disrupts the overall education process. The
    13  disruptive student exhibits to a marked degree any or all of the
    14  following conditions:
    15     (1)  Disregard of school authority, including persistent
    16  violation of school policy and rules.
    17     (2)  Display of or use of controlled substances on school
    18  property or during school-affiliated activities.
    19     (3)  Violent or threatening behavior.
    20     (4)  Possession of a weapon on school property, as defined
    21  under 18 Pa.C.S. § 912 (relating to possession of a weapon on
    22  school property.
    23     (5)  Commission of a criminal act on school property.
    24     (6)  Misconduct that would merit suspension or expulsion
    25  under school policy.
    26     (7)  Habitual truancy.
    27  No student who is eligible for special education services
    28  pursuant to the Individuals with Disabilities Education Act
    29  (Public Law 91-230, 20 U.S.C. § 1400 et seq.) shall be deemed a
    30  disruptive student for the purposes of this article, except as
    19970S0494B1913                  - 4 -

     1  provided for by the Department of Education by applicable
     2  regulations.
     3     "Eligible student" shall mean a student accepted into the
     4  program established by this article pursuant to section 1606-A.
     5     "Fund" shall mean the Residential Education Support Fund
     6  established by section 1629.
     7     "High school tuition charge" shall mean the amount computed
     8  under section 2561(3), applicable to pupils attending junior and
     9  senior high school.
    10     "Independent agency" shall mean as defined in 42 Pa.C.S. §
    11  102 (relating to definitions).
    12     "Parent" shall include a guardian or person in loco parentis.
    13     "Residential school" shall mean a school that offers a
    14  program of secondary education to students who reside on school
    15  property. The term does not include a home education program
    16  provided pursuant to section 1327.1.
    17     "School" shall mean any public or nonpublic secondary school
    18  located within this Commonwealth where a Commonwealth resident
    19  may legally fulfill the compulsory school attendance
    20  requirements and which meets the applicable requirements of
    21  Title VI of the Civil Rights Act of 1964 (Public Law 88-352, 78
    22  Stat. 241).
    23     "Secretary" shall mean the Secretary of Education of the
    24  Commonwealth.
    25     Section 1603-A.  Legislative Findings and Purpose.--(a)  The
    26  General Assembly finds as follows:
    27     (1)  A substantial proportion of the children of this
    28  Commonwealth in low-income families are growing up under the
    29  threat of having their futures blighted by the scourges of drugs
    30  and violent crime, particularly in our urban school districts.
    19970S0494B1913                  - 5 -

     1     (2)  At-risk children may stand a better chance of becoming
     2  productive and well-adjusted citizens if they have the
     3  opportunity to be educated at an alternative facility that
     4  offers a residential program, since such a program will provide
     5  a secure and nurturing environment that promotes learning.
     6     (3)  A residential school program can succeed only with the
     7  cooperation and support of the child's parents.
     8     (4)  Public funding may encourage private providers to create
     9  new residential education or open up existing residential
    10  education to at-risk children.
    11     (b)  The purpose of this article is to facilitate the
    12  establishment of residential secondary schools in which at-risk
    13  children may obtain their education in a safe, healthy and
    14  nurturing environment.
    15     Section 1604-A.  Pennsylvania Residential Education Board.--
    16  (a)  There is hereby created an independent agency which shall
    17  be known as the Pennsylvania Residential Education Board.
    18     (b)  The purpose of this board shall be to provide for the
    19  education of the eligible students.
    20     (c)  The board shall be governed and its corporate powers
    21  shall be exercised by a board of directors, which shall consist
    22  of fifteen members, including the Secretary of Education and the
    23  Secretary of Public Welfare, five members appointed by the
    24  Governor, two members appointed by the President pro tempore of
    25  the Senate, two members appointed by the Minority Leader of the
    26  Senate, two members appointed by the Speaker of the House of
    27  Representatives and two members appointed by the Minority Leader
    28  of the House of Representatives. The term of office for each
    29  member other than the Secretary of Education and the Secretary
    30  of Public Welfare shall be four years from his or her
    19970S0494B1913                  - 6 -

     1  appointment or until a successor has been duly appointed and
     2  qualified, but no longer than six (6) months beyond the four-
     3  year period. Three of the members appointed by the Governor and
     4  one of the members appointed by each of the officers of the
     5  General Assembly shall serve initial terms of two years. No
     6  member may serve more than two consecutive terms, except that
     7  members appointed for an initial term of two years may serve two
     8  consecutive four-year terms immediately after the initial term.
     9  The board shall elect from its own members each year a chair and
    10  vice chair who shall serve for terms of one year and who shall
    11  be eligible for reelection for successive terms. Vacancies shall
    12  be filled for the unexpired terms in the same manner as the
    13  original appointments.
    14     (d)  Directors shall receive no compensation for their
    15  services, but shall be reimbursed for their expenses actually
    16  and reasonably incurred by them in the performance of their
    17  duties.
    18     (e)  The board of directors shall provide for general and
    19  special meetings. Seven directors attending shall constitute a
    20  quorum for the transaction of any business and, unless a greater
    21  number is required by the bylaws of the board, the act of a
    22  majority of the members present at any meeting shall be deemed
    23  the act of the board. The board shall adopt bylaws for the board
    24  and may appoint such officers and employees as it deems
    25  advisable and may fix their compensation and prescribe their
    26  duties.
    27     (f)  Administrative support for the board shall be provided
    28  by the department. The department shall periodically consult
    29  with the board regarding the administrative needs of the board.
    30     (g)  An appointed member who fails to attend three
    19970S0494B1913                  - 7 -

     1  consecutive board meetings shall forfeit membership on the board
     2  unless the chair, upon written request of the member, determines
     3  that the member shall be excused from a meeting or meetings for
     4  reasonable cause.
     5     Section 1605-A.  Powers and Duties.--The Pennsylvania
     6  Residential Education Board shall have the following powers and
     7  duties, in addition to any others provided by this article:
     8     (1)  To select, fund and supervise providers of residential
     9  education programs in accordance with the provisions of this
    10  article.
    11     (2)  To enter into contracts with the providers in accordance
    12  with section 1608-A with respect to residential education
    13  programs.
    14     (3)  To select the students eligible to participate in the
    15  residential education program pursuant to section 1606-A.
    16     (4)  To place eligible students in residential schools that
    17  agree to accept them.
    18     (5)  To provide technical and financial assistance to public
    19  and nonpublic schools that wish to establish residential schools
    20  for at-risk children.
    21     (6)  To solicit and accept gifts, grants, loans and other aid
    22  from any person or from Federal, State or local government.
    23     (7)  To promulgate rules and regulations and adopt
    24  administrative guidelines relating to its activities, including
    25  rules regarding the selection of providers and of eligible
    26  students and verification of performance by providers.
    27     (8)  To develop a research design that will enable the public
    28  to evaluate the results of residential education of at-risk
    29  children and to collect data from residential schools in
    30  accordance with that design. The research design must provide
    19970S0494B1913                  - 8 -

     1  for the collection of data concerning the socioeconomic
     2  characteristics of the students, the instruction given and
     3  follow-up study of graduates of the program, including their
     4  educational attainment, employment history, income, marital
     5  status and criminal record.
     6     (9)  To perform such other acts as may be necessary or
     7  appropriate to carry out effectively the objectives and purposes
     8  of the board as specified in this article.
     9     Section 1606-A.  Eligible Students.--(a)  A student is
    10  eligible to participate in the residential education program if
    11  all of the following criteria are met:
    12     (1)  The student must have been a resident of this
    13  Commonwealth for at least two (2) years before application.
    14     (2)  The family of the student must be eligible to receive
    15  assistance under either AFDC or the Food Stamp Act of 1977
    16  (Public Law 88-525, 7 U.S.C. § 2011 et seq.), or both, or the
    17  annual family income must meet Federal poverty income
    18  guidelines.
    19     (3)  The student must reside in one of the 167 school
    20  districts identified by the department as having the highest
    21  percentage of children of families eligible to receive
    22  assistance under AFDC when measured as a percentage of the
    23  district's average daily membership.
    24     (4)  The student must reside in a municipal corporation that
    25  has a rate of violent crime more than twice the Statewide
    26  average rate as reported to the department under section 1611-
    27  A(b).
    28     (5)  The student must be of an age such that he or she would
    29  be eligible to enter grade seven, eight, nine or ten in the
    30  school district of residence, but in no event older than
    19970S0494B1913                  - 9 -

     1  seventeen years of age.
     2     (6)  An application must be submitted to the board under
     3  subsection (b).
     4     (7)  The student must be accepted into the program under
     5  subsection (c).
     6     (b)  The parents of the student must submit an application to
     7  the board on a form prescribed by the board by the deadline set
     8  by the board. The application must include all of the following:
     9     (1)  Information showing that the student is eligible under
    10  subsection (a)(1), (2), (3), (4) and (5).
    11     (2)  The school grade that the student intends to enter.
    12     (3)  A release allowing the board to verify the information
    13  provided on the application.
    14     (4)  Such other information as the board may require by
    15  regulation.
    16     (c)  The board shall approve applications in a number that is
    17  within the number of placements in residential schools under
    18  contract with or otherwise available to the board. No more than
    19  three per centum of the average daily membership in grades seven
    20  through ten of a school district may be selected from the
    21  applicants residing in that district, unless the number of
    22  eligible students would otherwise be fewer than the number of
    23  available placements. If the applications from a school district
    24  exceed the limitations of this subsection, the board shall
    25  select the eligible students from among the applicants by random
    26  selection. However, if the applications from all the school
    27  districts exceed the number of available placements, the board
    28  shall approve applicants by random selection from each school
    29  district in the proportion that the number of placements bears
    30  to the total applications. The board shall determine the
    19970S0494B1913                 - 10 -

     1  assignment of the students to the residential schools and shall
     2  so notify the parents of the student.
     3     (d)  A student shall no longer be eligible for the program
     4  established by this article if the student has:
     5     (1)  voluntarily withdrawn from the residential school
     6  program; or
     7     (2)  violated behavioral standards as promulgated by the
     8  board.
     9  An eligible student may not be dismissed from the program on the
    10  grounds that the student's municipal corporation or school
    11  district of residence does not qualify under subsection (a)(3)
    12  or (4).
    13     Section 1607-A.  Residential Education Programs.--(a)  The
    14  board shall award contracts pursuant to this article to
    15  providers who demonstrate the ability to operate and administer
    16  a residential school program that provides a suitable secondary
    17  education program for eligible students.
    18     (b)  The proposal submitted by the prospective provider must
    19  include the following:
    20     (1)  The title or name and the address or location of the
    21  school or classes together with the name of the owners and
    22  controlling officers.
    23     (2)  The general and specific fields of instruction that will
    24  be offered and the purposes of such instruction.
    25     (3)  The place or places where instruction will be given.
    26     (4)  The place or places where the students will reside.
    27     (5)  A specific listing of the equipment and staff available
    28  for instruction and residential supervision.
    29     (6)  The maximum enrollment that can be accommodated by the
    30  educational and residential facilities available.
    19970S0494B1913                 - 11 -

     1     (7)  The qualifications of instructors, administrators and
     2  supervisors.
     3     (8)  Financial resources available to equip and maintain the
     4  school and the residence.
     5     (9)  An agreement to abide by reasonable service and business
     6  ethics prescribed by the board.
     7     (10)  A research and performance verification plan consistent
     8  with the research design prescribed under section 1625-A(8).
     9     (11)  Any additional information the board may deem necessary
    10  to enable it to determine the adequacy of the program of
    11  instruction, the business integrity, the social support services
    12  and related matters.
    13     (c)  The board may exempt residential schools under contract
    14  with the board from the provisions of this act except for those
    15  applicable to nonpublic nonlicensed schools. This subsection
    16  shall not exempt residential schools from requirements otherwise
    17  applicable under the act of December 15, 1986 (P.L.1585,
    18  No.174), known as the "Private Licensed Schools Act," or the act
    19  of January 28, 1988 (P.L.24, No.11), known as the "Private
    20  Academic Schools Act."
    21     (d)  No contract may be awarded to a nonpublic school unless
    22  the proposal includes adequate assurances that the residential
    23  school will not be pervasively sectarian and that its secular
    24  character can be maintained without excessive entanglement
    25  between the provider and the Commonwealth.
    26     Section 1608-A.  Award of Contracts.--(a)  Contracts for the
    27  operation, administration and funding of residential schools
    28  shall be awarded through a process of competitive sealed
    29  proposals, which the board shall solicit through a request for
    30  proposals. The contract relating to each residential school
    19970S0494B1913                 - 12 -

     1  shall be let pursuant to a separate request for proposals.
     2     (b)  Adequate public notice of the request for proposals
     3  shall be given a reasonable time prior to the date set for the
     4  opening of proposals. Notice in the Pennsylvania Bulletin is
     5  sufficient for all purposes under this section.
     6     (c)  Discussions and negotiations may be conducted with
     7  responsible offerors who submit proposals determined to be
     8  reasonably susceptible of being selected for award. Offerors
     9  shall be accorded fair and equal treatment with respect to any
    10  opportunity for discussion, negotiation and revision of
    11  proposals. Revision may be permitted after submissions and prior
    12  to award for the purpose of obtaining best and final offers.
    13  Discussions shall not disclose any information derived from
    14  proposals submitted by other offerors.
    15     (d)  Award shall be made to the offeror whose proposal is
    16  determined in writing by the board to be the most advantageous
    17  to the Commonwealth based on the criteria determined by the
    18  board.
    19     Section 1609-A.  Residential Education Support Fund.--(a)
    20  There is hereby created a special nonlapsing fund in the State
    21  Treasury to be known as the Residential Education Support Fund.
    22  Moneys received by the board shall be paid into the State
    23  Treasury and shall be credited to the fund and are hereby
    24  appropriated to the board on a continuing basis to assist in
    25  funding activities necessary to meet the requirements of this
    26  article. The fund shall consist of the following:
    27     (1)  Any moneys appropriated to the fund by general
    28  appropriations.
    29     (2)  Contributions to the fund.
    30     (3)  The tuition charges required by section 1610-A.
    19970S0494B1913                 - 13 -

     1     (b)  (1)  Any business firm which contributes to the fund may
     2  receive a tax credit against any tax due under Article IV, VI,
     3  VII, VII-A, VIII, VIII-A, IX, X or XV of the act of March 4,
     4  1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971," or
     5  any tax substituted in lieu thereof. The credit shall not exceed
     6  two hundred fifty thousand dollars ($250,000) annually. Any tax
     7  credit not used in the calendar or fiscal year the donation is
     8  made may be carried over for the next five succeeding calendar
     9  or fiscal years until the full credit has been allowed.
    10     (2)  The total amount of all tax credits allowed pursuant to
    11  this section shall not exceed ten million dollars ($10,000,000)
    12  in any one fiscal year of the Commonwealth, unless a greater
    13  amount is provided for in the general appropriation act. If the
    14  total amount of tax credits claimed under this section exceeds
    15  the amount permitted under this paragraph, the tax credit
    16  allowed each business firm shall be ratably reduced under
    17  regulations promulgated by the Department of Revenue.
    18     (c)  Any charitable donations made by persons to the board
    19  shall also be deposited in the fund.
    20     (d)  For the purposes of this section, the term "business
    21  firm" means any business entity authorized to do business in
    22  this Commonwealth and subject to taxes imposed by Article IV,
    23  VI, VII, VII-A, VIII, VIII-A, IX, X or XV of the "Tax Reform
    24  Code of 1971."
    25     Section 1610-A.  Tuition Charges.--For each eligible student
    26  who attends a residential school that is not administered and
    27  operated by the school district of residence, the department
    28  shall pay to the fund the high school tuition charge
    29  attributable to the district and shall continue to pay the fund
    30  so long as the eligible student attends a residential school.
    19970S0494B1913                 - 14 -

     1  Payments shall be deducted from the reimbursements otherwise due
     2  the school district of residence under Article XXV. For purposes
     3  of this section, the term "school district of residence" means
     4  the school district in which the eligible student resided
     5  immediately before his or her attendance in a residential
     6  school.
     7     Section 1611-A.  Reports.--(a)  No later than January 31 of
     8  each year, the board shall submit a report to the Governor, the
     9  Appropriations Committee and the Education Committee of the
    10  Senate and the Appropriations Committee and the Education
    11  Committee of the House of Representatives, which shall include
    12  the following:
    13     (1)  The names of the providers, the names and addresses of
    14  the residential schools operated pursuant to this article and
    15  the number of eligible students enrolled in each school,
    16  analyzed by grade level and gender.
    17     (2)  The socioeconomic characteristics of the eligible
    18  students, with a separate analysis of those most recently
    19  enrolled.
    20     (3)  The number of students who have withdrawn from the
    21  residential schools and the number who have graduated from the
    22  program.
    23     (4)  The amount of financial support provided under this
    24  article to the residential schools, broken down by contract
    25  payments, amounts paid from the fund and amounts paid from
    26  Commonwealth appropriations.
    27     (5)  Evaluation of the program and suggestions for
    28  improvement, including suggestions for legislative action.
    29  In no case shall the names of eligible students or their parents
    30  be furnished as part of this report.
    19970S0494B1913                 - 15 -

     1     (b)  The Pennsylvania State Police shall annually submit to
     2  the board a list of all municipal corporations that have a rate
     3  of violent crime equal to or greater than twice the Statewide
     4  average rate of violent crime.
     5     Section 3.  The respective appointing authorities shall
     6  appoint the members of the Pennsylvania Residential Education
     7  Board within 120 days of the effective date of this act.
     8     Section 4.  (a)  The sum of $3,000,000 is hereby appropriated
     9  to the Department of Education for the fiscal year July 1, 1998,
    10  to June 30, 1999, for the purposes of implementing section
    11  1317.3 of the act.
    12     (b)  The sum of $3,000,000, or as much thereof as may be
    13  necessary, is hereby appropriated for the fiscal year July 1,
    14  1998, to June 30, 1999, to the Pennsylvania Residential
    15  Education Board to administer the provisions of Article XVI-A of
    16  the act.
    17     (c)  The sum of $20,000,000, or as much thereof as may be
    18  necessary, is hereby appropriated to the Department of Education
    19  for the fiscal year July 1, 1998, to June 30, 1999, for grants
    20  to school districts for the purchase of textbooks. Payments to
    21  school districts shall be equal to an amount derived by
    22  multiplying the average daily membership of a school district by
    23  $21 times the market value personal income aid ratio of the
    24  school district. The Department of Education shall require that
    25  school districts provide an equitable share of the grant to the
    26  area vocational-technical schools which their students attend.
    27     Section 5.  This act shall take effect in 60 days.
    28     SECTION 1.  SECTIONS 102(4) AND 507 OF THE ACT OF MARCH 10,    <--
    29  1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949,
    30  ARE AMENDED TO READ:
    19970S0494B1913                 - 16 -

     1     SECTION 102.  DEFINITIONS.--WHEN USED IN THIS ACT THE
     2  FOLLOWING WORDS AND PHRASES SHALL HAVE THE FOLLOWING MEANINGS:
     3     * * *
     4     (4)  "SCHOOL YEAR" SHALL MEAN THE PERIOD OF TIME ELAPSING IN
     5  SCHOOL DISTRICTS OF THE FIRST CLASS BETWEEN THE FIRST DAY OF
     6  JANUARY AND THE THIRTY-FIRST DAY OF DECEMBER OF ANY YEAR, AND IN
     7  SCHOOL DISTRICTS OF ALL OTHER CLASSES BETWEEN THE FIRST DAY OF
     8  JULY OF ONE YEAR AND THE THIRTIETH DAY OF JUNE OF THE FOLLOWING
     9  YEAR. SCHOOL DISTRICTS WITH A YEAR-ROUND EDUCATION PROGRAM MAY
    10  SUBMIT A REQUEST TO THE SECRETARY OF EDUCATION FOR APPROVAL OR
    11  DISAPPROVAL TO EXTEND THE SCHOOL YEAR UNTIL AUGUST 15 FOR THE
    12  PURPOSE OF DETERMINING AVERAGE DAILY MEMBERSHIPS FOR STUDENTS
    13  WHOSE ONE HUNDRED EIGHTY (180) DAYS OF INSTRUCTION CONTINUE INTO
    14  THE SUMMER MONTHS.
    15     * * *
    16     SECTION 507.  GENERAL POWERS; TAXATION.--IN ORDER TO
    17  ESTABLISH, ENLARGE, EQUIP, FURNISH, OPERATE, AND MAINTAIN ANY
    18  SCHOOLS OR DEPARTMENTS HEREIN PROVIDED, OR TO PAY ANY SCHOOL
    19  INDEBTEDNESS WHICH ANY SCHOOL DISTRICT IS REQUIRED TO PAY, OR TO
    20  PAY ANY INDEBTEDNESS THAT MAY AT ANY TIME HEREAFTER BE CREATED
    21  BY ANY SCHOOL DISTRICT, OR TO ENABLE IT TO CARRY OUT ANY
    22  PROVISIONS OF THIS ACT, THE BOARD OF SCHOOL DIRECTORS IN EACH
    23  SCHOOL DISTRICT IS HEREBY VESTED WITH ALL THE NECESSARY
    24  AUTHORITY AND POWER ANNUALLY TO LEVY AND COLLECT, IN THE MANNER
    25  HEREIN PROVIDED, THE NECESSARY TAXES REQUIRED, IN ADDITION TO
    26  THE ANNUAL STATE APPROPRIATION, AND SHALL HAVE, AND BE VESTED
    27  WITH, ALL NECESSARY POWER AND AUTHORITY TO COMPLY WITH AND CARRY
    28  OUT ANY OR ALL OF THE PROVISIONS OF THIS ACT. IN THE CASE OF A
    29  SCHOOL DISTRICT OF THE FIRST CLASS, THE DUTIES IMPOSED BY THIS
    30  SECTION SHALL APPLY TO A CITY OF THE FIRST CLASS THAT IS
    19970S0494B1913                 - 17 -

     1  COTERMINOUS WITH A SCHOOL DISTRICT OF THE FIRST CLASS.
     2     SECTION 2.  SECTION 691 OF THE ACT, AMENDED OR ADDED DECEMBER
     3  15, 1959 (P.L.1842, NO.675) AND JULY 31, 1963 (P.L.407, NO.215),
     4  IS AMENDED TO READ:
     5     SECTION 691.  WHEN DISTRICT DISTRESSED.--(A)  A SCHOOL
     6  DISTRICT SHALL BE DEEMED TO BE DISTRESSED WHEN ANY ONE OF THE
     7  FOLLOWING CIRCUMSTANCES SHALL ARISE AND THE [SUPERINTENDENT OF
     8  PUBLIC INSTRUCTION] SECRETARY OF EDUCATION, AFTER PROPER
     9  INVESTIGATION OF THE DISTRICT'S FINANCIAL CONDITION, THE
    10  ADMINISTRATIVE PRACTICES OF THE BOARD AND SUCH OTHER MATTERS [AS
    11  TO HIM MAY SEEM PERTINENT] DEEMED APPROPRIATE BY THE SECRETARY
    12  OF EDUCATION, HAS ISSUED A CERTIFICATE DECLARING SUCH DISTRICT
    13  IN FINANCIAL DISTRESS:
    14     (1)  THE SALARIES OF ANY TEACHERS OR OTHER EMPLOYES HAVE
    15  REMAINED UNPAID FOR A PERIOD OF NINETY (90) DAYS.
    16     (2)  THE TUITION DUE ANOTHER SCHOOL DISTRICT REMAINS UNPAID
    17  ON AND AFTER JANUARY FIRST OF THE YEAR FOLLOWING THE SCHOOL YEAR
    18  IT WAS DUE AND THERE IS NO DISPUTE REGARDING THE VALIDITY OR
    19  AMOUNT OF THE CLAIM.
    20     (3)  ANY AMOUNT DUE ANY JOINT BOARD OF SCHOOL DIRECTORS UNDER
    21  A JOINT BOARD AGREEMENT REMAINS UNPAID FOR A PERIOD OF NINETY
    22  (90) CALENDAR DAYS BEYOND THE DUE DATE SPECIFIED IN THE JOINT
    23  BOARD'S ARTICLES OF AGREEMENT.
    24     (4)  THE SCHOOL DISTRICT HAS DEFAULTED IN PAYMENT OF ITS
    25  BONDS OR INTEREST ON SUCH BONDS OR IN PAYMENT OF RENTALS DUE ANY
    26  AUTHORITY FOR A PERIOD OF NINETY (90) CALENDAR DAYS AND NO
    27  ACTION HAS BEEN INITIATED WITHIN THAT PERIOD OF TIME TO MAKE
    28  PAYMENT.
    29     (5)  THE SCHOOL DISTRICT HAS CONTRACTED ANY LOAN NOT
    30  AUTHORIZED BY LAW.
    19970S0494B1913                 - 18 -

     1     (6)  THE SCHOOL DISTRICT HAS ACCUMULATED AND HAS OPERATED
     2  WITH A DEFICIT EQUAL TO TWO PER CENTUM (2%) OR MORE OF THE
     3  ASSESSED VALUATION OF THE TAXABLE REAL ESTATE WITHIN THE
     4  DISTRICT FOR TWO SUCCESSIVE YEARS.
     5     (7)  A NEW, MERGED OR UNION SCHOOL DISTRICT HAS BEEN FORMED
     6  AND ONE OR MORE OF THE FORMER SCHOOL DISTRICTS WHICH COMPOSE THE
     7  MERGED OR UNION SCHOOL DISTRICT WAS A DISTRESSED SCHOOL DISTRICT
     8  AT THE TIME OF THE FORMATION OF THE MERGED OR UNION SCHOOL
     9  DISTRICT.
    10     (B)  NO SCHOOL DISTRICT SHALL BE DEEMED TO BE DISTRESSED BY
    11  REASON OF ANY OF THE ABOVE CIRCUMSTANCES ARISING AS A RESULT OF
    12  THE FAILURE OF THE COMMONWEALTH TO MAKE ANY PAYMENT OF MONEY DUE
    13  THE DISTRICT AT THE TIME SUCH PAYMENT IS DUE.
    14     (C)  IN ADDITION TO THE CIRCUMSTANCES TO DETERMINE FINANCIAL
    15  DISTRESS UNDER SUBSECTION (A), THE SECRETARY OF EDUCATION MAY
    16  DECLARE A SCHOOL DISTRICT OF THE FIRST CLASS TO BE DISTRESSED IF
    17  THE SECRETARY OF EDUCATION DETERMINES THAT:
    18     (1)  THE SCHOOL DISTRICT OF THE FIRST CLASS FAILED TO ADOPT
    19  OR TO COMPLY WITH A VALID BUDGET TO OPERATE THE SCHOOL DISTRICT
    20  FOR A MINIMUM INSTRUCTIONAL SCHOOL YEAR UNDER SECTION 1501;
    21     (2)  THE SCHOOL DISTRICT OF THE FIRST CLASS FAILED TO
    22  ALLOCATE OR TRANSFER REVENUES TO ENSURE THAT FUNDS ARE
    23  SUFFICIENT TO PROVIDE A MINIMUM INSTRUCTIONAL SCHOOL YEAR UNDER
    24  SECTION 1501;
    25     (3)  THE CITY OF THE FIRST CLASS FAILED TO TRANSFER REVENUES
    26  TO THE SCHOOL DISTRICT CONSISTENT WITH THE CURRENT BUDGET; OR
    27     (4)  THE SCHOOL DISTRICT OF THE FIRST CLASS HAS FAILED OR
    28  WILL FAIL TO PROVIDE FOR AN EDUCATIONAL PROGRAM IN COMPLIANCE
    29  WITH THE PROVISIONS OF THIS ACT, REGULATIONS OF THE STATE BOARD
    30  OF EDUCATION OR STANDARDS OF THE SECRETARY OF EDUCATION.
    19970S0494B1913                 - 19 -

     1     SECTION 3.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
     2     SECTION 696.  DISTRESS IN SCHOOL DISTRICTS OF THE FIRST
     3  CLASS.--(A)  THE SECRETARY OF EDUCATION SHALL APPOINT A CHIEF
     4  EXECUTIVE OFFICER WITHIN FIFTEEN (15) DAYS AFTER A DECLARATION
     5  BY THE SECRETARY OF EDUCATION THAT A SCHOOL DISTRICT OF THE
     6  FIRST CLASS IS DISTRESSED UNDER SECTION 691(C) TO OVERSEE AND
     7  MANAGE THE SCHOOL DISTRICT. THE CHIEF EXECUTIVE OFFICER SHALL
     8  SERVE AT THE PLEASURE OF THE SECRETARY OF EDUCATION.
     9     (B)  THE CHIEF EXECUTIVE OFFICER AND THE SCHOOL REFORM
    10  COMMISSION SHALL ASSUME CONTROL OF THE AFFAIRS OF THE DISTRICT.
    11  EXCEPT AS PROVIDED IN THIS SECTION, THE CHIEF EXECUTIVE OFFICER
    12  SHALL ASSUME THE POWERS AND DUTIES OF THE SUPERINTENDENT AND THE
    13  BOARD OF SCHOOL DIRECTORS UNTIL TERMINATION OF THE PERIOD OF
    14  DISTRESS UNDER SUBSECTION (N).
    15     (C)  UPON THE APPOINTMENT OF THE CHIEF EXECUTIVE OFFICER, THE
    16  SUPERINTENDENT SHALL BE SUSPENDED OR DISMISSED AND THE POWERS
    17  AND DUTIES OF THE BOARD OF SCHOOL DIRECTORS SHALL BE SUSPENDED.
    18     (D)  WITHIN FIFTEEN (15) DAYS OF A DECLARATION BY THE
    19  SECRETARY OF EDUCATION THAT A SCHOOL DISTRICT OF THE FIRST CLASS
    20  IS DISTRESSED UNDER SECTION 691(C), A FIVE MEMBER SCHOOL REFORM
    21  COMMISSION SHALL BE ESTABLISHED. MEMBERS SHALL SERVE AT THE
    22  PLEASURE OF THE APPOINTING AUTHORITY. THE SCHOOL REFORM
    23  COMMISSION SHALL CONSIST OF THE FOLLOWING:
    24     (1)  THREE MEMBERS APPOINTED BY THE GOVERNOR, AT LEAST TWO OF
    25  WHOM SHALL BE RESIDENTS OF THE SCHOOL DISTRICT.
    26     (2)  ONE MEMBER APPOINTED BY THE MAYOR WHO SHALL BE A
    27  RESIDENT OF THE SCHOOL DISTRICT. IN THE EVENT THE MAYOR FAILS TO
    28  APPOINT THE MEMBER TO THE COMMISSION WITHIN FIFTEEN (15) DAYS OF
    29  THE DATE THE SECRETARY OF EDUCATION DECLARED THE DISTRICT TO BE
    30  DISTRESSED, THE GOVERNOR SHALL APPOINT THE REMAINING MEMBER.
    19970S0494B1913                 - 20 -

     1     (3)  THE SECRETARY OF EDUCATION, WHO SHALL SERVE AS CHAIRMAN,
     2  OR HIS DESIGNEE.
     3     (E)  THE SCHOOL REFORM COMMISSION SHALL ADVISE AND ASSIST THE
     4  CHIEF EXECUTIVE OFFICER REGARDING THE OPERATION, MANAGEMENT AND
     5  EDUCATIONAL PROGRAM OF THE SCHOOL DISTRICT. THE POWERS AND
     6  DUTIES GRANTED HERETOFORE TO THE BOARD OF SCHOOL DIRECTORS OF A
     7  SCHOOL DISTRICT OF THE FIRST CLASS UNDER THIS ACT OR ANY OTHER
     8  LAW REGARDING THE AUTHORITY TO LEVY TAXES AND INCUR DEBT SHALL
     9  BE VESTED IN THE SCHOOL REFORM COMMISSION UNTIL THE SECRETARY OF
    10  EDUCATION ISSUES A DECLARATION UNDER SUBSECTION (N).
    11     (F)  THE COMMISSION MEMBERS SHALL BE REIMBURSED FOR EXPENSES
    12  INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES FROM FUNDS
    13  OF THE DEPARTMENT OF EDUCATION.
    14     (G)  ACTIONS OF THE SCHOOL REFORM COMMISSION SHALL BE BY
    15  MAJORITY VOTE. THREE MEMBERS SHALL CONSTITUTE A QUORUM.
    16     (H)  THE CHIEF EXECUTIVE OFFICER AND THE SCHOOL REFORM
    17  COMMISSION SHALL DIRECT FINANCIAL MATTERS RELATED TO THE
    18  DISTRESSED SCHOOL DISTRICT OF THE FIRST CLASS AND:
    19     (1)  ALL TAXES AUTHORIZED TO BE LEVIED BY A SCHOOL DISTRICT
    20  OF THE FIRST CLASS OR FOR A SCHOOL DISTRICT OF THE FIRST CLASS
    21  BY A CITY OR COUNTY OF THE FIRST CLASS SHALL CONTINUE TO BE
    22  LEVIED IN ACCORDANCE WITH THIS ACT AND SHALL BE TRANSMITTED TO
    23  THE SCHOOL DISTRICT. FOR THE FIRST FISCAL YEAR OR PART THEREOF,
    24  AND EVERY FISCAL YEAR THEREAFTER IN WHICH THE SCHOOL DISTRICT IS
    25  DECLARED TO BE DISTRESSED, THE AMOUNT LEVIED, COLLECTED AND
    26  TRANSMITTED FOR EACH TAX SHALL BE IN AN AMOUNT NOT LESS THAN THE
    27  HIGHEST AMOUNT PAID BY THE CITY OR COUNTY TO THE SCHOOL DISTRICT
    28  DURING ANY OF THE THREE FULL PRECEDING FISCAL YEARS. IN
    29  ADDITION, THE CITY OF THE FIRST CLASS SHALL PROVIDE TO THE
    30  SCHOOL DISTRICT OF THE FIRST CLASS ALL OTHER AVAILABLE LOCAL
    19970S0494B1913                 - 21 -

     1  NON-TAX REVENUE, INCLUDING GRANTS, SUBSIDIES OR PAYMENTS MADE
     2  DURING THE PRIOR YEAR.
     3     (2)  IN ADDITION TO THE MONEYS COLLECTED UNDER PARAGRAPH (1),
     4  THE CITY OF THE FIRST CLASS SHALL REMIT TO THE SCHOOL DISTRICT
     5  OF THE FIRST CLASS FOR EACH YEAR THAT THE SCHOOL DISTRICT IS
     6  DECLARED DISTRESSED, THAT PORTION OF ALL OTHER LOCAL TAX REVENUE
     7  LEVIED FOR A FULL FISCAL YEAR BY A CITY OR COUNTY OF THE FIRST
     8  CLASS COTERMINOUS WITH A SCHOOL DISTRICT OF THE FIRST CLASS THAT
     9  WAS ALLOCATED TO THE SCHOOL DISTRICT PRIOR TO THE SCHOOL
    10  DISTRICT BEING DECLARED DISTRESSED IN ACCORDANCE WITH SECTION
    11  691(C).
    12     (3)  ALL TAXES COLLECTED ON BEHALF OF A SCHOOL DISTRICT OF
    13  THE FIRST CLASS BY ANY PERSON OR ENTITY, INCLUDING A CITY OR
    14  COUNTY OF THE FIRST CLASS SHALL BE PROMPTLY PAID FOLLOWING
    15  COLLECTION TO THE CHIEF EXECUTIVE OFFICER FOR THE BENEFIT OF THE
    16  SCHOOL DISTRICT.
    17     (4)  IN THE EVENT THE CITY OR COUNTY OF THE FIRST CLASS DOES
    18  NOT MEET THE FINANCIAL OBLIGATIONS PRESCRIBED IN THIS
    19  SUBSECTION, THE COMMONWEALTH MAY APPLY TO THAT OBLIGATION ANY
    20  AMOUNTS OTHERWISE DUE FROM THE COMMONWEALTH TO THE CITY OR
    21  COUNTY OF THE FIRST CLASS INCLUDING, BUT NOT LIMITED TO, GRANTS,
    22  AWARDS AND MONEYS COLLECTED BY THE COMMONWEALTH ON BEHALF OF THE
    23  CITY OR COUNTY OF THE FIRST CLASS. FUNDS WITHHELD SHALL BE
    24  MAINTAINED IN A SEPARATE ACCOUNT BY THE STATE TREASURER TO BE
    25  DISBURSED AS DETERMINED BY THE SECRETARY OF EDUCATION IN
    26  CONSULTATION WITH THE STATE TREASURER.
    27     (5)  THE CHIEF EXECUTIVE OFFICER SHALL DEVELOP AND ADOPT A
    28  BUDGET WITH THE ASSISTANCE OF THE SCHOOL REFORM COMMISSION.
    29     (I)  IN ADDITION TO ALL POWERS GRANTED TO THE SUPERINTENDENT
    30  BY LAW AND A SPECIAL BOARD OF CONTROL UNDER SECTION 693, AND
    19970S0494B1913                 - 22 -

     1  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE CHIEF
     2  EXECUTIVE OFFICER SHALL HAVE THE FOLLOWING POWERS:
     3     (1)  TO APPOINT SUCH PERSONS AND OTHER ENTITIES AS NEEDED TO
     4  CONDUCT FISCAL AND PERFORMANCE AUDITS AND OTHER NECESSARY
     5  ANALYSES.
     6     (2)  EXCEPT AS OTHERWISE PROVIDED FOR IN THIS SECTION, TO
     7  APPROVE THE ESTABLISHMENT OF A CHARTER SCHOOL OR THE CONVERSION
     8  OF AN EXISTING SCHOOL TO A CHARTER SCHOOL PURSUANT TO THE
     9  PROVISIONS OF ARTICLE XVII-A.
    10     (I)  A SCHOOL DISTRICT BUILDING CONVERTED TO A CHARTER SCHOOL
    11  OR A CHARTER SCHOOL OTHERWISE APPROVED UNDER THIS SECTION SHALL
    12  NOT BE SUBJECT TO SECTIONS 1717-A(B), (C), (D), (E), (F) AND
    13  (G), 1722-A(C) AND 1724-A.
    14     (II)  THE CHIEF EXECUTIVE OFFICER MAY SUSPEND OR REVOKE A
    15  CHARTER PURSUANT TO SECTION 1729-A.
    16     (3)  TO SUSPEND THE REQUIREMENTS OF THIS ACT AND REGULATIONS
    17  OF THE STATE BOARD OF EDUCATION EXCEPT THAT THE SCHOOL DISTRICT
    18  SHALL REMAIN SUBJECT TO THOSE PROVISIONS OF THIS ACT AND
    19  REGULATIONS SET FORTH IN SECTION 1732-A(A), (B) AND (C).
    20     (4)  TO EMPLOY PROFESSIONAL AND SENIOR MANAGEMENT EMPLOYES
    21  WHO DO NOT HOLD STATE CERTIFICATION IF THE SCHOOL REFORM
    22  COMMISSION HAS APPROVED THE QUALIFICATIONS OF THE PERSON AT A
    23  SALARY ESTABLISHED BY THE COMMISSION.
    24     (5)  TO ENTER INTO CONTRACTS WITH FOR-PROFIT OR NONPROFIT
    25  ENTITIES FOR THE PURPOSE OF OPERATING SCHOOLS OR PROVIDING
    26  EDUCATIONAL OR OTHER SERVICES TO OR FOR THE SCHOOL DISTRICT.
    27     (6)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS ACT, TO
    28  CLOSE OR RECONSTITUTE A SCHOOL, INCLUDING THE REASSIGNMENT,
    29  SUSPENSION OR DISMISSAL OF PROFESSIONAL EMPLOYES.
    30     (7)  TO SUSPEND PROFESSIONAL EMPLOYES WITHOUT REGARD TO THE
    19970S0494B1913                 - 23 -

     1  PROVISIONS OF SECTION 1125.1.
     2     (8)  TO APPOINT MANAGERS OR MANAGEMENT TEAMS TO OVERSEE THE
     3  OPERATIONS OF A SCHOOL OR GROUP OF SCHOOLS WITHIN THE SCHOOL
     4  DISTRICT.
     5     (9)  TO REALLOCATE RESOURCES, AMEND SCHOOL PROCEDURES,
     6  DEVELOP ACHIEVEMENT PLANS AND IMPLEMENT TESTING OR OTHER
     7  EVALUATION PROCEDURES FOR EDUCATIONAL PURPOSES.
     8     (10)  TO SUPERVISE AND DIRECT PRINCIPALS, TEACHERS AND
     9  ADMINISTRATORS.
    10     (11)  TO NEGOTIATE ANY MEMORANDA OF UNDERSTANDING UNDER THE
    11  COLLECTIVE BARGAINING AGREEMENT IN EXISTENCE ON THE EFFECTIVE
    12  DATE OF THIS SECTION.
    13     (12)  TO NEGOTIATE A NEW COLLECTIVE BARGAINING AGREEMENT.
    14     (J)  THE BOARD OF SCHOOL DIRECTORS OF THE DISTRESSED SCHOOL
    15  DISTRICT OF THE FIRST CLASS SHALL CONTINUE IN OFFICE FOR THE
    16  REMAINDER OF THEIR TERMS DURING THE TIME THE DISTRICT IS
    17  OPERATED BY THE CHIEF EXECUTIVE OFFICER AND THE COMMISSION
    18  UNLESS REMOVED FOR NEGLECT OF DUTY UNDER SECTION 318 BY THE
    19  COURT OF COMMON PLEAS, OR UNLESS THE DIRECTOR IS ELECTED TO
    20  ANOTHER POSITION NOT COMPATIBLE WITH THE POSITION OF SCHOOL
    21  DIRECTOR OR IS APPOINTED TO A POSITION FOR WHICH THERE IS A
    22  REQUIREMENT THAT THE APPOINTEE SHALL HOLD NO ELECTIVE OFFICE.
    23  THE BOARD OF SCHOOL DIRECTORS SHALL PERFORM ANY DUTIES DELEGATED
    24  TO IT BY THE COMMISSION. THE ASSUMPTION OF CONTROL BY THE CHIEF
    25  EXECUTIVE OFFICER AND THE SCHOOL REFORM COMMISSION SHALL NOT
    26  INTERFERE WITH THE REGULAR SELECTION OF SCHOOL DIRECTORS FOR THE
    27  SCHOOL DISTRICT OF THE FIRST CLASS.
    28     (K)  COLLECTIVE BARGAINING BETWEEN EMPLOYES AND THE SCHOOL
    29  DISTRICT OF THE FIRST CLASS SHALL BE CONDUCTED IN ACCORDANCE
    30  WITH THIS SUBSECTION.
    19970S0494B1913                 - 24 -

     1     (1)  WHETHER OR NOT A DECLARATION OF DISTRESS HAS BEEN MADE
     2  UNDER SECTION 691(C), A COLLECTIVE BARGAINING AGREEMENT IN
     3  EFFECT ON THE EFFECTIVE DATE OF THIS SECTION SHALL NOT BE
     4  EXTENDED AND SHALL HAVE NO FORCE OR EFFECT BEYOND THE EXISTING
     5  TERM OF THE CONTRACT NOTWITHSTANDING ANY OTHER LAW TO THE
     6  CONTRARY.
     7     (2)  NO DISTRESSED SCHOOL DISTRICT OF THE FIRST CLASS SHALL
     8  BE REQUIRED TO ENGAGE IN COLLECTIVE BARGAINING NEGOTIATIONS OR
     9  ENTER INTO MEMORANDA OF UNDERSTANDING, OR OTHER AGREEMENTS
    10  REGARDING ANY OF THE FOLLOWING ISSUES:
    11     (I)  CONTRACTS WITH THIRD PARTIES FOR THE PROVISION OF GOODS
    12  OR SERVICES, INCLUDING EDUCATIONAL SERVICES OR THE POTENTIAL
    13  IMPACT OF SUCH CONTRACTS ON EMPLOYES.
    14     (II)  DECISIONS RELATED TO REDUCTIONS IN FORCE.
    15     (III)  STAFFING PATTERNS AND ASSIGNMENTS, CLASS SCHEDULES,
    16  ACADEMIC CALENDAR, PLACES OF INSTRUCTION, PUPIL ASSESSMENT AND
    17  TEACHER PREPARATION TIME.
    18     (IV)  THE USE, CONTINUATION OR EXPANSION OF PROGRAMS
    19  DESIGNATED BY THE CHIEF EXECUTIVE OFFICER AS PILOT OR
    20  EXPERIMENTAL PROGRAMS.
    21     (V)  THE APPROVAL OR DESIGNATION OF A SCHOOL AS A CHARTER OR
    22  MAGNET SCHOOL.
    23     (VI)  THE USE OF TECHNOLOGY TO PROVIDE INSTRUCTIONAL OR OTHER
    24  SERVICES.
    25     (3)  A COLLECTIVE BARGAINING AGREEMENT FOR PROFESSIONAL
    26  EMPLOYES ENTERED INTO AFTER THE EXPIRATION OF THE AGREEMENT IN
    27  EFFECT ON THE DATE OF THE DECLARATION OF DISTRESS SHALL PROVIDE
    28  FOR THE FOLLOWING:
    29     (I)  A SCHOOL DAY FOR PROFESSIONAL EMPLOYES THAT IS EQUAL TO
    30  OR EXCEEDS THE STATE AVERAGE AS DETERMINED BY THE DEPARTMENT. AN
    19970S0494B1913                 - 25 -

     1  EXTENSION OF THE SCHOOL DAY RESULTING FROM THIS REQUIREMENT
     2  SHALL BE USED EXCLUSIVELY FOR INSTRUCTIONAL TIME FOR STUDENTS.
     3     (II)  THE NUMBER OF INSTRUCTIONAL DAYS SHALL BE EQUAL TO OR
     4  EXCEED THE STATE AVERAGE NUMBER OF INSTRUCTIONAL DAYS.
     5     (III)  THE CHIEF EXECUTIVE OFFICER AND THE COMMISSION SHALL
     6  NOT INCREASE COMPENSATION FOR EMPLOYES SOLELY TO FULFILL THE
     7  REQUIREMENTS UNDER SUBPARAGRAPHS (I) AND (II).
     8     (4)  A PROVISION IN ANY CONTRACT IN EFFECT ON THE DATE OF THE
     9  DECLARATION OF DISTRESS UNDER THIS SUBSECTION THAT IS IN
    10  CONFLICT WITH THIS SUBSECTION SHALL BE DISCONTINUED IN ANY NEW
    11  OR RENEWED CONTRACT.
    12     (5)  NOTHING IN THIS SUBSECTION SHALL ELIMINATE, SUPERSEDE OR
    13  PREEMPT ANY PROVISION OF AN EXISTING COLLECTIVE BARGAINING
    14  AGREEMENT UNTIL THE EXPIRATION OF THE AGREEMENT UNLESS OTHERWISE
    15  AUTHORIZED BY LAW.
    16     (6)  IF, UPON THE TERMINATION OF A COLLECTIVE BARGAINING
    17  AGREEMENT IN EFFECT ON THE DATE OF THE DECLARATION OF DISTRESS
    18  UNDER THIS SECTION, A NEW COLLECTIVE BARGAINING AGREEMENT HAS
    19  NOT BEEN RATIFIED, THE SECRETARY OF EDUCATION SHALL ESTABLISH A
    20  PERSONNEL SALARY SCHEDULE TO BE USED UNTIL A NEW AGREEMENT IS
    21  RATIFIED.
    22     (L)  DURING THE TIME THE SCHOOL DISTRICT OF THE FIRST CLASS
    23  IS UNDER THE DIRECTION OF THE CHIEF EXECUTIVE OFFICER, ALL
    24  SCHOOL EMPLOYES SHALL BE PROHIBITED FROM ENGAGING IN ANY STRIKE
    25  AS DEFINED IN ARTICLE XI-A AND SECTION 301 OF THE ACT OF JULY
    26  23, 1970 (P.L.563, NO.195), KNOWN AS THE PUBLIC EMPLOYE
    27  RELATIONS ACT. THE SECRETARY OF EDUCATION MAY SUSPEND THE
    28  CERTIFICATE OF AN EMPLOYE WHO VIOLATES THIS SUBSECTION.
    29     (M)  IF A VACANCY OCCURS IN THE POSITION OF CHIEF EXECUTIVE
    30  OFFICER, THE SECRETARY OF EDUCATION MAY IMPLEMENT A TEMPORARY
    19970S0494B1913                 - 26 -

     1  TRANSFER OF ALL POWERS AND DUTIES OF THE CHIEF EXECUTIVE OFFICER
     2  TO THE SCHOOL REFORM COMMISSION UNTIL A NEW CHIEF EXECUTIVE
     3  OFFICER IS APPOINTED.
     4     (N)  THE SECRETARY OF EDUCATION, UPON THE RECOMMENDATION OF
     5  THE CHIEF EXECUTIVE OFFICER AND WITH THE CONCURRENCE OF A
     6  MAJORITY OF THE SCHOOL REFORM COMMISSION, MAY ISSUE A
     7  DECLARATION TO DISSOLVE THE COMMISSION AND TERMINATE THE
     8  SERVICES OF THE CHIEF EXECUTIVE OFFICER. THE DISSOLUTION
     9  DECLARATION SHALL BE EFFECTIVE NINETY (90) DAYS AFTER ISSUANCE
    10  BY THE SECRETARY OF EDUCATION.
    11     (O)  THE PROVISIONS OF THIS SECTION ARE SEVERABLE. IF ANY
    12  PROVISION OF THIS SECTION OR ITS APPLICATION TO ANY PERSON OR
    13  CIRCUMSTANCE IS HELD INVALID, THE INVALIDITY SHALL NOT AFFECT
    14  THE REMAINING PROVISIONS OR APPLICATIONS.
    15     SECTION 4.  SECTIONS 917.1-A AND 919.1-A OF THE ACT ARE
    16  AMENDED BY ADDING SUBSECTIONS TO READ:
    17     SECTION 917.1-A.  COMMONWEALTH PAYMENTS.--* * *
    18     (H)  FOR THE 1998-1999 SCHOOL YEAR, EACH INTERMEDIATE UNIT
    19  SHALL RECEIVE A PROPORTIONATE SHARE OF THE AMOUNT AVAILABLE
    20  UNDER SUBSECTION (A) MINUS THE PAYMENTS MADE UNDER SECTION
    21  919.1-A(E) BASED ON THE AMOUNT RECEIVED BY THE INTERMEDIATE UNIT
    22  UNDER SUBSECTION (G) FOR THE 1997-1998 SCHOOL YEAR. DURING THE
    23  1998-1999 SCHOOL YEAR, HOWEVER, NO INTERMEDIATE UNIT SHALL
    24  RECEIVE LESS PAYMENT UNDER THIS SUBSECTION THAN THE AMOUNT OF
    25  THE PAYMENTS THE INTERMEDIATE UNIT RECEIVED UNDER SUBSECTION (G)
    26  DURING THE 1997-1998 SCHOOL YEAR.
    27     SECTION 919.1-A.  CAPITAL SUBSIDY.--* * *
    28     (E)  NOTWITHSTANDING ANY PROVISION OF THIS ACT TO THE
    29  CONTRARY, FOR THE 1998-1999 SCHOOL YEAR, EACH INTERMEDIATE UNIT
    30  SHALL RECEIVE THE ACTUAL PAYMENT FOR CAPITAL SUBSIDY WHICH IT
    19970S0494B1913                 - 27 -

     1  RECEIVED UNDER THIS SECTION AND SECTION 2502.6(B) DURING THE
     2  1997-1998 SCHOOL YEAR.
     3     SECTION 5.  SECTION 922.1-A(C) OF THE ACT, ADDED AUGUST 1,
     4  1975 (P.L.180, NO.89), IS AMENDED TO READ:
     5     SECTION 922.1-A.  AUXILIARY SERVICES.--* * *
     6     (C)  PROGRAM OF AUXILIARY SERVICES. STUDENTS ATTENDING
     7  NONPUBLIC SCHOOLS SHALL BE FURNISHED A PROGRAM OF AUXILIARY
     8  SERVICES WHICH ARE PROVIDED TO PUBLIC SCHOOL STUDENTS IN THE
     9  SCHOOL DISTRICT IN WHICH THEIR NONPUBLIC SCHOOL IS LOCATED. THE
    10  PROGRAM OF AUXILIARY SERVICES SHALL BE PROVIDED BY THE
    11  INTERMEDIATE UNIT IN WHICH THE NONPUBLIC SCHOOL IS LOCATED, IN
    12  ACCORDANCE WITH STANDARDS OF THE SECRETARY OF EDUCATION. SUCH
    13  SERVICES SHALL BE PROVIDED DIRECTLY TO THE NONPUBLIC SCHOOL
    14  STUDENTS BY THE INTERMEDIATE UNIT [EXCEPT THAT SUCH SERVICES
    15  SHALL NOT BE PROVIDED IN A CHURCH OR IN ANY FACILITY UNDER THE
    16  CONTROL OF A SECTARIAN SCHOOL] IN THE SCHOOLS WHICH THE STUDENTS
    17  ATTEND, IN MOBILE INSTRUCTIONAL UNITS LOCATED ON THE GROUNDS OF
    18  SUCH SCHOOLS OR IN ANY ALTERNATIVE SETTING MUTUALLY AGREED UPON
    19  BY THE SCHOOL AND THE INTERMEDIATE UNIT, TO THE EXTENT PERMITTED
    20  BY THE CONSTITUTION OF THE UNITED STATES AND THE CONSTITUTION OF
    21  THE COMMONWEALTH OF PENNSYLVANIA.
    22     SUCH AUXILIARY SERVICES SHALL BE PROVIDED DIRECTLY BY THE
    23  INTERMEDIATE UNITS AND NO AUXILIARY SERVICES PRESENTLY PROVIDED
    24  TO PUBLIC SCHOOL STUDENTS BY THE INTERMEDIATE UNITS AND/OR
    25  SCHOOL DISTRICTS BY MEANS OF STATE OR LOCAL REVENUES, DURING THE
    26  SCHOOL YEAR 1974-1975, SHALL BE ELIMINATED. NO SCHOOL DISTRICTS
    27  SHALL BE REQUIRED, PURSUANT TO ANY SECTION OF THIS ACT, TO OFFER
    28  AUXILIARY SERVICES PROVIDED BY ANY OTHER SCHOOL DISTRICTS WITHIN
    29  SUCH INTERMEDIATE UNITS.
    30     SECTION 6.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    19970S0494B1913                 - 28 -

     1     SECTION 1317.3.  UNIFORMS.--THE BOARD OF DIRECTORS IN ANY
     2  SCHOOL ENTITY MAY IMPOSE LIMITATIONS ON DRESS AND MAY REQUIRE
     3  PUPILS TO WEAR STANDARD DRESS OR UNIFORMS. DRESS POLICIES MAY BE
     4  APPLICABLE THROUGHOUT THE SCHOOL ENTITY OR MAY BE APPLICABLE TO
     5  ONE OR MORE SCHOOL BUILDINGS WITHIN THE SCHOOL ENTITY.
     6     * * *
     7     SECTION 7.  SECTION 1548 OF THE ACT, ADDED JUNE 7, 1993
     8  (P.L.49, NO.16), IS AMENDED TO READ:
     9     SECTION 1548.  INSTRUCTIONAL SUPPORT.--[THE INSTRUCTIONAL
    10  SUPPORT PROGRAM CURRENTLY FOUND AT 22 PA. CODE § 14.24 (RELATING
    11  TO INSTRUCTIONAL SUPPORT) OR ANY SUCCESSOR REGULATION SHALL NOT
    12  APPLY TO STUDENTS WHO ARE THOUGHT TO BE GIFTED, TO STUDENTS
    13  ATTENDING NONPUBLIC SCHOOLS WHO ARE THOUGHT TO BE EXCEPTIONAL OR
    14  TO YOUNG CHILDREN NOT YET OF KINDERGARTEN AGE OR NOT ENROLLED IN
    15  A PUBLIC SCHOOL PROGRAM. PUBLIC SCHOOL STUDENTS THOUGHT TO BE
    16  ELIGIBLE MAY BE SERVED REGARDLESS OF GRADE.] ALL PROVISIONS IN
    17  22 PA. CODE CHS. 14 (RELATING TO SPECIAL EDUCATION SERVICES AND
    18  PROGRAMS) AND 342 (RELATING TO SPECIAL EDUCATION SERVICES AND
    19  PROGRAMS) PERTAINING TO INSTRUCTIONAL SUPPORT ARE OPTIONAL FOR
    20  SCHOOL DISTRICTS.
    21     SECTION 8.  THE DEFINITION OF "COMMUNITY EDUCATION COUNCIL"
    22  IN SECTION 1502-A OF THE ACT, ADDED JUNE 25, 1997 (P.L.297,
    23  NO.30), IS AMENDED TO READ:
    24     SECTION 1502-A.  DEFINITIONS.--AS USED IN THIS ARTICLE,
    25     * * *
    26     "COMMUNITY EDUCATION COUNCIL" SHALL MEAN A NONPROFIT
    27  [INSTITUTIONALLY NEUTRAL] EDUCATIONAL ORGANIZATION, GOVERNED BY
    28  A COMMUNITY-BASED BOARD OF DIRECTORS, WHICH SERVES TO PROVIDE
    29  ACCESS TO POST-SECONDARY EDUCATION AND TRAINING RESOURCES FOR
    30  CITIZENS IN [COMMUNITIES THAT HAVE A SHORTAGE OF ADULT
    19970S0494B1913                 - 29 -

     1  EDUCATION, CONTINUING EDUCATION AND/OR POST-SECONDARY EDUCATION
     2  SERVICES] EDUCATIONALLY UNDERSERVED AREAS OF THIS COMMONWEALTH.
     3     * * *
     4     SECTION 9.  SECTIONS 1503-A(C)(2.1) AND (2.2) AND 1504-A(A)
     5  OF THE ACT, AMENDED JUNE 25, 1997 (P.L.297, NO.30), ARE AMENDED
     6  TO READ:
     7     SECTION 1503-A.  BASIC EDUCATION GRANTS.--* * *
     8     (C)  * * *
     9     (2.1)  FOR THE 1997-1998 AND 1998-1999 SCHOOL [YEAR] YEARS, A
    10  SCHOOL DISTRICT SHALL BE ELIGIBLE FOR A GRANT IN THE SAME AMOUNT
    11  AS A SCHOOL DISTRICT WAS ELIGIBLE TO RECEIVE FOR THE 1996-1997
    12  SCHOOL YEAR AS PROVIDED IN CLAUSE (2).
    13     (2.2)  FOR THE 1997-1998 AND 1998-1999 SCHOOL [YEAR] YEARS,
    14  AN AREA VOCATIONAL-TECHNICAL SCHOOL SHALL BE ELIGIBLE TO RECEIVE
    15  FROM THE AMOUNT OF THREE MILLION DOLLARS ($3,000,000)
    16  APPROPRIATED FOR THE PURPOSES OF THIS CLAUSE A GRANT IN THE SAME
    17  [MANNER AS A SCHOOL DISTRICT AS PROVIDED IN CLAUSE (2). IF THE
    18  SUM PROVIDED IN THIS CLAUSE IS NOT SUFFICIENT TO PAY IN FULL THE
    19  TOTAL AMOUNT TO WHICH A QUALIFYING AREA VOCATIONAL-TECHNICAL
    20  SCHOOL IS ENTITLED TO RECEIVE, THE ALLOCATION SHALL BE
    21  PROPORTIONATELY REDUCED TO THE EXTENT NECESSARY TO BRING THE
    22  AGGREGATE OF THE ALLOCATIONS WITHIN THE LIMIT OF THE AMOUNT
    23  PROVIDED IN THIS CLAUSE] AMOUNT AS THE AREA VOCATIONAL-TECHNICAL
    24  SCHOOL WAS ELIGIBLE TO RECEIVE FOR THE 1997-1998 SCHOOL YEAR.
    25     * * *
    26     SECTION 1504-A.  HIGHER EDUCATION FUNDING.--(A)  THE
    27  DEPARTMENT AND THE OFFICE OF ADMINISTRATION SHALL ESTABLISH
    28  MANAGEMENT TEAMS TO PROVIDE DIRECTION AND OVERSIGHT AND TO
    29  DISTRIBUTE FUNDS APPROPRIATED FOR THE RESEARCHING, PLANNING AND
    30  DEVELOPMENT OF THE PENNSYLVANIA EDUCATION NETWORK WHICH CAN
    19970S0494B1913                 - 30 -

     1  INCLUDE WHEN APPROPRIATE, BUT NOT BE LIMITED TO, THE FOLLOWING
     2  FOCUS AREAS:
     3     (1)  DOCUMENTING PUBLIC AND PRIVATE TECHNOLOGY RESOURCES,
     4  INCLUDING, BUT NOT LIMITED TO, EXISTING TELECOMMUNICATIONS
     5  NETWORKS, VIDEO CONFERENCING CAPABILITIES AND DISTANCE EDUCATION
     6  COURSES AND IDENTIFYING TECHNOLOGY TRANSFER OPPORTUNITIES THAT
     7  CAN BE LEVERAGED FOR THE PENNSYLVANIA EDUCATION NETWORK.
     8     (2)  ESTABLISHING TECHNOLOGY [INFRASTRUCTURE INVESTMENT]
     9  GRANTS TO DEVELOP EDUCATIONAL CONTENT AND IMPLEMENT PENNSYLVANIA
    10  EDUCATION NETWORK STRATEGIES AND CONNECTIVITY BY USING COMPETING
    11  TECHNOLOGIES AND METHODOLOGIES.
    12     (I)  FUNDS FOR [INFRASTRUCTURE INVESTMENT] GRANTS SHALL BE
    13  DISTRIBUTED THROUGH [A GRANT] AN APPLICATION AT SUCH TIME AND IN
    14  SUCH FORM AS THE SECRETARY OF EDUCATION MAY REQUIRE.
    15     (II)  APPLICANTS MAY INCLUDE PUBLIC AND PRIVATE INSTITUTIONS
    16  OF HIGHER EDUCATION, COMMUNITY EDUCATION COUNCILS, NOT-FOR-
    17  PROFIT ORGANIZATIONS IN PENNSYLVANIA AND ANY OTHER ENTITY
    18  APPROVED BY THE DEPARTMENT OF EDUCATION.
    19     (III)  PRIORITY SHALL BE GIVEN TO APPLICATIONS CONSISTING OF
    20  PARTNERSHIPS.
    21     (3)  IMPLEMENTING A SHARED STATEWIDE VISION AND STRATEGIC
    22  PLAN FOR BUILDING THE PENNSYLVANIA EDUCATION NETWORK.
    23     (4)  DEVELOPING METHODS AND RESOURCES TO ENSURE EDUCATORS ARE
    24  ABLE TO USE THE TECHNOLOGY EFFECTIVELY WITH THE CURRICULUM.
    25     * * *
    26     SECTION 10.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    27     SECTION 1505-A.  TECHNOLOGY GRANTS FOR EQUIPMENT AND
    28  SERVICES.--(A)  THE PURPOSES OF THE TECHNOLOGY GRANTS TO BENEFIT
    29  STUDENTS IN NONPUBLIC AND PRIVATE SCHOOLS ARE TO:
    30     (1)  IMPROVE THE EDUCATION PENNSYLVANIA'S NONPUBLIC AND
    19970S0494B1913                 - 31 -

     1  PRIVATE SCHOOL STUDENTS RECEIVE.
     2     (2)  INCREASE NONPUBLIC AND PRIVATE STUDENTS' ACCESS TO
     3  WORLDWIDE INFORMATION, EXPERTISE AND RESOURCES AVAILABLE THROUGH
     4  TECHNOLOGY.
     5     (3)  PROVIDE PROFESSIONAL DEVELOPMENT OPPORTUNITIES TO ENSURE
     6  NONPUBLIC AND PRIVATE SCHOOL TEACHERS CAN USE TECHNOLOGY
     7  EFFECTIVELY WITH THE CURRICULUM.
     8     (4)  COMPLEMENT LINK-TO-LEARN'S EFFORTS AND ADD VALUE TO THE
     9  PENNSYLVANIA EDUCATION NETWORK BY FORGING COLLABORATIVE
    10  PARTNERSHIPS BETWEEN EDUCATIONAL INSTITUTIONS.
    11     (5)  COMPLEMENT FEDERAL TECHNOLOGY INITIATIVES.
    12     (B)  THE DEPARTMENT OF EDUCATION THROUGH INTERMEDIATE UNITS
    13  SHALL HAVE THE POWER AND DUTY TO PURCHASE COMPUTER HARDWARE,
    14  SOFTWARE, CONNECTIVITY AND RELATED TECHNOLOGY TO LOAN THEM TO
    15  ALL CHILDREN RESIDING IN THIS COMMONWEALTH WHO ARE ENROLLED IN
    16  GRADES KINDERGARTEN THROUGH TWELVE OF A NONPUBLIC AND PRIVATE
    17  SCHOOL AND MAY PROVIDE PROFESSIONAL DEVELOPMENT OPPORTUNITIES.
    18  THE SECRETARY OF EDUCATION SHALL ESTABLISH A PER CAPITA FORMULA
    19  BASED ON THE NUMBER OF ELIGIBLE STUDENTS IN NONPUBLIC AND
    20  PRIVATE SCHOOLS AND EACH INTERMEDIATE UNIT. FUNDS SHALL BE
    21  ALLOCATED TO INTERMEDIATE UNITS WHO SHALL PURCHASE AND LOAN THE
    22  EQUIPMENT TO SUCH CHILDREN AND MAY PROVIDE PROFESSIONAL
    23  DEVELOPMENT OPPORTUNITIES. EQUIPMENT AND SERVICES SHALL NOT BE
    24  USED FOR SECTARIAN PURPOSES.
    25     SECTION 11.  SECTION 1913-A(B)(1.4)(III) OF THE ACT, AMENDED
    26  JUNE 25, 1997 (P.L.297, NO.30), IS AMENDED TO READ:
    27     SECTION 1913-A.  FINANCIAL PROGRAM; REIMBURSEMENT OR
    28  PAYMENTS.--* * *
    29     (B)  * * *
    30     (1.4)  THE EQUIVALENT FULL-TIME STUDENT REIMBURSEMENT OF A
    19970S0494B1913                 - 32 -

     1  COMMUNITY COLLEGE SHALL BE THE SUM OF CREDIT COURSE, NONCREDIT
     2  COURSE AND STIPEND REIMBURSEMENTS. THESE REIMBURSEMENTS SHALL BE
     3  CALCULATED USING A REIMBURSEMENT FACTOR OF ONE THOUSAND AND
     4  FORTY DOLLARS ($1,040) FOR THE 1993-1994 FISCAL YEAR, OF ONE
     5  THOUSAND EIGHTY DOLLARS ($1,080) FOR THE 1994-1995 FISCAL YEAR
     6  AND OF ONE THOUSAND ONE HUNDRED EIGHTY DOLLARS ($1,180) FOR THE
     7  1995-1996 FISCAL YEAR AND ONE THOUSAND AND TWO HUNDRED AND TEN
     8  DOLLARS ($1,210) FOR THE 1996-1997 FISCAL YEAR AND ONE THOUSAND
     9  TWO HUNDRED SIXTY DOLLARS ($1,260) FOR THE 1997-1998 FISCAL YEAR
    10  AND FOR EACH YEAR THEREAFTER AND SHALL BE DETERMINED AS FOLLOWS:
    11     * * *
    12     (III)  STIPEND REIMBURSEMENT ON ACCOUNT OF A COMMUNITY
    13  COLLEGE'S OPERATING COSTS FOR ALL EQUIVALENT FULL-TIME STUDENTS
    14  ENROLLED IN THE FOLLOWING CATEGORIES OF TWO-YEAR OR LESS THAN
    15  TWO-YEAR OCCUPATIONAL OR TECHNICAL PROGRAMS, SHALL BE THE SUM OF
    16  THE FOLLOWING:
    17     (A)  ONE THOUSAND ONE HUNDRED DOLLARS ($1,100) PER FULL-TIME
    18  EQUIVALENT STUDENT ENROLLED IN ADVANCED TECHNOLOGY PROGRAMS. FOR
    19  THE FISCAL YEAR 1995-1996 [AND EACH YEAR THEREAFTER], 1996-1997
    20  AND 1997-1998, THE REIMBURSEMENT RATE SHALL BE CALCULATED AT ONE
    21  THOUSAND ONE HUNDRED SEVENTY-FIVE DOLLARS ($1,175) PER FULL-TIME
    22  EQUIVALENT STUDENT ENROLLED IN ADVANCED TECHNOLOGY PROGRAMS. FOR
    23  THE FISCAL YEAR 1998-1999 AND EACH YEAR THEREAFTER, THE
    24  REIMBURSEMENT RATE SHALL BE CALCULATED AT ONE THOUSAND FOUR
    25  HUNDRED SIXTY DOLLARS ($1,460) PER FULL-TIME EQUIVALENT STUDENT
    26  ENROLLED IN ADVANCED TECHNOLOGY PROGRAMS. ADVANCED TECHNOLOGY
    27  PROGRAMS ARE PROGRAMS USING NEW OR ADVANCED TECHNOLOGIES WHICH
    28  HOLD PROMISE FOR CREATING NEW JOB OPPORTUNITIES, INCLUDING SUCH
    29  FIELDS AS ROBOTICS, BIOTECHNOLOGY, SPECIALIZED MATERIALS AND
    30  ENGINEERING AND ENGINEERING-RELATED PROGRAMS.
    19970S0494B1913                 - 33 -

     1     (B)  ONE THOUSAND DOLLARS ($1,000) PER FULL-TIME EQUIVALENT
     2  STUDENT ENROLLED IN PROGRAMS DESIGNATED AS STATEWIDE PROGRAMS.
     3  FOR THE FISCAL YEAR 1995-1996 [AND EACH YEAR THEREAFTER], 1996-
     4  1997 AND 1997-1998, THE REIMBURSEMENT RATE SHALL BE CALCULATED
     5  AT ONE THOUSAND SEVENTY-FIVE DOLLARS ($1,075) PER FULL-TIME
     6  EQUIVALENT STUDENT ENROLLED IN PROGRAMS DESIGNATED AS STATEWIDE
     7  PROGRAMS. FOR THE FISCAL YEAR 1998-1999 AND EACH YEAR
     8  THEREAFTER, THE REIMBURSEMENT RATE SHALL BE CALCULATED AT ONE
     9  THOUSAND THREE HUNDRED SIXTY DOLLARS ($1,360) PER FULL-TIME
    10  EQUIVALENT STUDENT ENROLLED IN PROGRAMS DESIGNATED AS STATEWIDE
    11  PROGRAMS. A STATEWIDE PROGRAM IS A PROGRAM WHICH MEETS ONE OR
    12  MORE OF THE FOLLOWING CRITERIA:
    13     (I)  PROGRAM ENROLLMENT FROM OUT-OF-SPONSOR AREA IS TWENTY
    14  PER CENT OR MORE OF THE ENROLLMENT FOR THE PROGRAM.
    15     (II)  A CONSORTIAL ARRANGEMENT EXISTS WITH ANOTHER COMMUNITY
    16  COLLEGE TO COOPERATIVELY OPERATE A PROGRAM OR SHARE REGIONS IN
    17  ORDER TO AVOID UNNECESSARY PROGRAM DUPLICATION.
    18     (C)  FIVE HUNDRED DOLLARS ($500) PER FULL-TIME EQUIVALENT
    19  STUDENT ENROLLED IN OTHER OCCUPATIONAL OR TECHNICAL PROGRAMS.
    20  FOR THE FISCAL YEAR 1995-1996 [AND EACH YEAR THEREAFTER], 1996-
    21  1997 AND 1997-1998, THE REIMBURSEMENT RATE SHALL BE CALCULATED
    22  AT FIVE HUNDRED SEVENTY-FIVE DOLLARS ($575) PER FULL-TIME
    23  EQUIVALENT STUDENT ENROLLED IN OTHER OCCUPATIONAL OR TECHNICAL
    24  PROGRAMS. FOR THE FISCAL YEAR 1998-1999 AND EACH YEAR
    25  THEREAFTER, THE REIMBURSEMENT RATE SHALL BE CALCULATED AT EIGHT
    26  HUNDRED SIXTY DOLLARS ($860) PER FULL-TIME EQUIVALENT STUDENT
    27  ENROLLED IN OTHER OCCUPATIONAL OR TECHNICAL PROGRAMS.
    28     * * *
    29     SECTION 12.  SECTION 2003-A.1(C) OF THE ACT, AMENDED JULY 11,
    30  1990 (P.L.424, NO.103), IS AMENDED TO READ:
    19970S0494B1913                 - 34 -

     1     SECTION 2003-A.1.  PROJECT CONTRACTS.--* * *
     2     (C)  ALL CONTRACTS, OTHER THAN CONTRACTS FOR THE RETENTION OF
     3  ARCHITECTS AND ENGINEERS, AUTHORIZED BY THIS SECTION WHICH
     4  EXCEED [FIVE THOUSAND DOLLARS ($5,000)] TEN THOUSAND DOLLARS
     5  ($10,000), SHALL BE ADVERTISED IN THE MANNER PROVIDED BY LAW AND
     6  COMPETITIVELY BID AND AWARDED TO THE LOWEST RESPONSIBLE BIDDER.
     7  IN CASE OF EMERGENCIES AND NOTWITHSTANDING ANY OTHER PROVISION
     8  OF THIS SECTION TO THE CONTRARY, THE CHANCELLOR MAY MAKE OR
     9  AUTHORIZE OTHERS TO MAKE AN EMERGENCY PROCUREMENT WHENEVER A
    10  THREAT EXISTS TO PUBLIC HEALTH, WELFARE OR SAFETY OR
    11  CIRCUMSTANCES OUTSIDE THE CONTROL OF THE STATE SYSTEM AND
    12  CREATES AN URGENCY OF NEED WHICH DOES NOT PERMIT THE DELAY
    13  INVOLVED IN USING MORE FORMAL COMPETITIVE METHODS. WHENEVER
    14  PRACTICAL, IN THE CASE OF A PROCUREMENT OF A SUPPLY, AT LEAST
    15  TWO (2) BIDS SHALL BE SOLICITED. A WRITTEN DETERMINATION OF THE
    16  BASIS FOR THE EMERGENCY AND FOR THE SELECTION OF THE PARTICULAR
    17  CONTRACTOR SHALL BE INCLUDED IN THE CONTRACT FILE.
    18     * * *
    19     SECTION 13.  SECTION 2006-A(A) OF THE ACT IS AMENDED BY
    20  ADDING A CLAUSE TO READ:
    21     SECTION 2006-A.  POWERS AND DUTIES OF THE BOARD OF
    22  GOVERNORS.--(A)  THE BOARD OF GOVERNORS SHALL HAVE OVERALL
    23  RESPONSIBILITY FOR PLANNING AND COORDINATING THE DEVELOPMENT AND
    24  OPERATION OF THE SYSTEM. THE POWERS AND DUTIES OF THE BOARD OF
    25  GOVERNORS SHALL BE:
    26     * * *
    27     (13.1)  TO SET THE AMOUNTS FOR FINES FOR VIOLATIONS OF RULES
    28  RESPECTING THE USE, PARKING AND OPERATION OF MOTOR VEHICLES ON
    29  SYSTEM FACILITIES, WHICH MAY BE ESTABLISHED TO EXCEED THE
    30  AMOUNTS WHICH MUNICIPALITIES ARE AUTHORIZED TO ASSESS FOR SUCH
    19970S0494B1913                 - 35 -

     1  OFFENSES UNDER 75 PA.C.S. (RELATING TO VEHICLES).
     2     * * *
     3     SECTION 14.  SECTION 2010-A(10) OF THE ACT, ADDED NOVEMBER
     4  12, 1982 (P.L.660, NO.188), IS AMENDED TO READ:
     5     SECTION 2010-A.  POWER AND DUTIES OF INSTITUTION
     6  PRESIDENTS.--THE PRESIDENT OF EACH INSTITUTION SHALL BE
     7  APPOINTED BY THE BOARD. THE PRESIDENT SHALL BE THE CHIEF
     8  EXECUTIVE OFFICER OF THAT INSTITUTION. HE SHALL HAVE THE RIGHT
     9  TO ATTEND ALL MEETINGS OF THE COUNCIL OF THAT INSTITUTION AND
    10  SHALL HAVE THE RIGHT TO SPEAK ON ALL MATTERS BEFORE THE COUNCIL
    11  BUT NOT TO VOTE. SUBJECT TO THE STATED AUTHORITY OF THE BOARD
    12  AND THE COUNCIL, EACH PRESIDENT SHALL HAVE THE [POWER AND HIS
    13  DUTIES SHALL BE] FOLLOWING POWERS AND DUTIES:
    14     * * *
    15     (10)  WITHIN THE LIMITATIONS OF THE OPERATING BUDGET AND
    16  OTHER AVAILABLE FUNDS IN ACCORDANCE WITH THE PROCEDURES
    17  ESTABLISHED BY THE BOARD AND WITH THE APPROVAL OF THE LOCAL
    18  COUNCIL, TO NEGOTIATE AND AWARD ALL CONTRACTS FOR EQUIPMENT,
    19  SERVICES AND SUPPLIES IN EXCESS OF A COST OF [FIVE THOUSAND
    20  DOLLARS ($5,000)] TEN THOUSAND DOLLARS ($10,000), ON A
    21  COMPETITIVE BID BASIS AND TO PURCHASE INSTRUCTIONAL,
    22  EDUCATIONAL, EXTRACURRICULAR, TECHNICAL, ADMINISTRATIVE,
    23  CUSTODIAL AND MAINTENANCE EQUIPMENT AND SUPPLIES NOT IN EXCESS
    24  OF A COST OF [FIVE THOUSAND DOLLARS ($5,000)] TEN THOUSAND
    25  DOLLARS ($10,000) WITHOUT COMPETITIVE BIDDING, EXCEPT THAT SUCH
    26  ITEMS SHALL NOT BE BOUGHT IN SERIES TO AVOID THE DOLLAR CEILING.
    27     * * *
    28     SECTION 15.  SECTION 2501(21) OF THE ACT, ADDED JUNE 7, 1993
    29  (P.L.49, NO.16), IS AMENDED TO READ:
    30     SECTION 2501.  DEFINITIONS.--FOR THE PURPOSES OF THIS ARTICLE
    19970S0494B1913                 - 36 -

     1  THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
     2     * * *
     3     (21)  "CHILDREN IN LOW-INCOME FAMILIES."  CHILDREN AGED FIVE
     4  (5) TO SEVENTEEN (17) YEARS, INCLUSIVE, IN FAMILIES RECEIVING A
     5  GRANT IN EXCESS OF TWO THOUSAND DOLLARS ($2,000) PER YEAR FROM
     6  THE COMMONWEALTH ON ACCOUNT OF DEPENDENT CHILDREN [UNDER THE
     7  SOCIAL SECURITY ACT (49 STAT. 620, 42 U.S.C. § 301 ET SEQ.)]
     8  PURSUANT TO TITLE IV OF THE SOCIAL SECURITY ACT, AS AMENDED (42
     9  U.S.C. § 601, ET SEQ.).
    10     * * *
    11     SECTION 16.  SECTION 2502.13 OF THE ACT, AMENDED JUNE 30,
    12  1995 (P.L.220, NO.26), IS AMENDED TO READ:
    13     SECTION 2502.13.  SMALL DISTRICT ASSISTANCE.--FOR THE 1984-
    14  1985 AND 1985-1986 SCHOOL YEARS, THE COMMONWEALTH SHALL PAY TO
    15  EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
    16  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND HAS A MARKET
    17  VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000)
    18  OR GREATER, AN AMOUNT EQUAL TO FIFTY DOLLARS ($50) MULTIPLIED BY
    19  THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE 1985-1986
    20  SCHOOL YEAR, NO SCHOOL DISTRICT SHALL RECEIVE LESS ON ACCOUNT OF
    21  THIS SECTION THAN IT DID FOR THE 1984-1985 SCHOOL YEAR. FOR THE
    22  SCHOOL YEAR 1986-1987, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL
    23  DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND
    24  FIVE HUNDRED (1,500) OR LESS AND HAS A MARKET VALUE/INCOME AID
    25  RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, OR
    26  RECEIVED PAYMENTS UNDER THIS SECTION FOR THE 1985-1986 SCHOOL
    27  YEAR, AN AMOUNT EQUAL TO SEVENTY-FIVE DOLLARS ($75) MULTIPLIED
    28  BY THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEAR
    29  1987-1988, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT
    30  WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE
    19970S0494B1913                 - 37 -

     1  HUNDRED (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF
     2  FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, OR RECEIVED
     3  PAYMENTS UNDER THIS SECTION FOR THE 1986-1987 SCHOOL YEAR, AN
     4  AMOUNT EQUAL TO EIGHTY-FIVE DOLLARS ($85) MULTIPLIED BY THAT
     5  DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEAR 1988-
     6  1989, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT WHICH
     7  HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED
     8  (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF FIVE
     9  THOUSAND TEN THOUSANDTHS (0.5000) OR GREATER, OR RECEIVED
    10  PAYMENTS UNDER THIS SECTION FOR THE 1987-1988 OR 1988-1989
    11  SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED FIVE DOLLARS ($105).
    12  FOR THE SCHOOL YEAR 1989-1990, THE COMMONWEALTH SHALL PAY TO
    13  EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
    14  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND A MARKET
    15  VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000)
    16  OR GREATER, OR RECEIVED PAYMENTS UNDER THIS SECTION FOR THE
    17  1987-1988 SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED FIFTEEN
    18  DOLLARS ($115) MULTIPLIED BY THE DISTRICT'S AVERAGE DAILY
    19  MEMBERSHIP AS PROVIDED FOR IN SECTION 212 OF THE ACT OF JULY 1,
    20  1990 (P.L.1591, NO.7A), KNOWN AS THE "GENERAL APPROPRIATION ACT
    21  OF 1990." FOR THE SCHOOL YEAR 1990-1991, THE COMMONWEALTH SHALL
    22  PAY TO EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY
    23  MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND A
    24  MARKET VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS
    25  (0.5000) OR GREATER, OR RECEIVED PAYMENTS UNDER THIS SECTION FOR
    26  THE PRIOR SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED SEVENTY
    27  DOLLARS ($170) MULTIPLIED BY THAT DISTRICT'S AVERAGE DAILY
    28  MEMBERSHIP. FOR THE SCHOOL YEAR 1990-1991, EACH SCHOOL DISTRICT
    29  WITH A POPULATION PER SQUARE MILE OF LESS THAN NINETY (90),
    30  WHICH OTHERWISE MEETS THE AVERAGE DAILY MEMBERSHIP AND MARKET
    19970S0494B1913                 - 38 -

     1  VALUE/INCOME AID RATIO REQUIREMENTS OF THIS SECTION, OR RECEIVED
     2  PAYMENTS UNDER THIS SECTION FOR THE PRIOR SCHOOL YEAR, SHALL
     3  INSTEAD RECEIVE AN AMOUNT EQUAL TO ONE HUNDRED NINETY DOLLARS
     4  ($190) MULTIPLIED BY THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP.
     5  FOR THE 1987-1988 SCHOOL YEAR THROUGH THE 1990-1991 SCHOOL YEAR,
     6  NO SCHOOL DISTRICT SHALL RECEIVE LESS ON ACCOUNT OF THIS SECTION
     7  THAN IT DID FOR THE PRIOR SCHOOL YEAR. FOR THE SCHOOL YEAR 1994-
     8  1995, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT WHICH
     9  HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED
    10  (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF FIVE
    11  THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, AN AMOUNT EQUAL TO
    12  NINETY FIVE DOLLARS ($95) MULTIPLIED BY THAT DISTRICT'S AVERAGE
    13  DAILY MEMBERSHIP. FOR THE SCHOOL YEAR 1997-1998, THE
    14  COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT WHICH HAS AN
    15  AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED (1,500) OR
    16  LESS AND A MARKET VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-
    17  THOUSANDTHS (0.5000) OR GREATER, AN AMOUNT EQUAL TO SEVENTY-FIVE
    18  DOLLARS ($75) MULTIPLIED BY THAT DISTRICT'S AVERAGE DAILY
    19  MEMBERSHIP.
    20     SECTION 17.  SECTION 2502.30 OF THE ACT, AMENDED JULY 11,
    21  1996 (P.L.633, NO.107), IS AMENDED TO READ:
    22     SECTION 2502.30.  TEMPORARY SPECIAL AID TO SCHOOL DISTRICTS
    23  SUFFERING LOSS OF TAX REVENUE DUE TO REDUCTION IN ASSESSED
    24  VALUATION OF TAXABLE PROPERTY.--(A)  TEMPORARY SPECIAL AID SHALL
    25  BE PAID IN FISCAL YEARS 1994-1995, 1995-1996, 1996-1997 AND
    26  1997-1998 TO SCHOOL DISTRICTS EXPERIENCING A SEVERE REDUCTION IN
    27  LOCAL REVENUE DUE TO A DECLINE IN THE ASSESSED VALUE OF TAXABLE
    28  PROPERTIES. THE ALLOCATION TO THESE DISTRICTS SHALL BE
    29  DETERMINED BY MULTIPLYING THE REDUCTION IN ASSESSED VALUE
    30  BETWEEN 1985-1986 AND 1992-1993 BY THE 1992-1993 REAL ESTATE
    19970S0494B1913                 - 39 -

     1  MILLAGE RATE. THIS AID SHALL BE PAID FROM UNDISTRIBUTED FUNDS
     2  NOT EXPENDED, ENCUMBERED OR COMMITTED FROM APPROPRIATIONS FOR
     3  GRANTS AND SUBSIDIES MADE TO THE DEPARTMENT OF EDUCATION. NO
     4  OTHER FUNDS SHALL BE USED FOR ASSISTANCE UNDER THIS SECTION.
     5  THESE FUNDS SHALL BE SUFFICIENT TO PROVIDE TEMPORARY RELIEF TO
     6  SEVEN SCHOOL DISTRICTS IN FISCAL YEAR 1995-1996 AT SEVENTY-FIVE
     7  PER CENTUM (75%) OF THE FUNDS RECEIVED IN FISCAL YEAR 1994-1995,
     8  IN FISCAL YEAR 1996-1997 AT FIFTY PER CENTUM (50%) OF THE FUNDS
     9  RECEIVED IN FISCAL YEAR 1994-1995 AND IN FISCAL YEAR 1997-1998
    10  AND 1998-1999 AT TWENTY-FIVE PER CENTUM (25%) OF THE FUNDS
    11  RECEIVED IN FISCAL YEAR 1994-1995. THIS SECTION SHALL EXPIRE
    12  OCTOBER 1, [1998] 1999.
    13     (B)  PAYMENTS MADE PURSUANT TO SUBSECTION (A) SHALL BE PAID
    14  FROM A RESTRICTED RECEIPT ACCOUNT, WHICH IS HEREBY ESTABLISHED,
    15  FOR SUCH PAYMENTS. FUNDS SHALL BE TRANSFERRED BY THE SECRETARY
    16  OF THE BUDGET TO THE RESTRICTED ACCOUNT ONLY TO THE EXTENT
    17  NECESSARY TO MAKE THE PAYMENTS AUTHORIZED BY THIS SECTION. THE
    18  MONEY IN THE RESTRICTED ACCOUNT IS HEREBY APPROPRIATED FROM THE
    19  ACCOUNT FOR PURPOSES OF THIS SECTION.
    20     SECTION 18.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    21     SECTION 2502.35.  BASIC EDUCATION FUNDING FOR 1997-1998
    22  SCHOOL YEAR.--FOR THE 1997-1998 SCHOOL YEAR, THE COMMONWEALTH
    23  SHALL PAY TO EACH SCHOOL DISTRICT A BASIC EDUCATION FUNDING
    24  ALLOCATION WHICH SHALL CONSIST OF THE FOLLOWING:
    25     (1)  AN AMOUNT EQUAL TO THE BASIC EDUCATION FUNDING
    26  ALLOCATION FOR THE 1996-1997 SCHOOL YEAR PURSUANT TO SECTION
    27  2502.33.
    28     (2)  A BASE SUPPLEMENT PAYABLE TO QUALIFYING SCHOOL
    29  DISTRICTS.
    30     (I)  TO QUALIFY FOR THE BASE SUPPLEMENT, A SCHOOL DISTRICT'S
    19970S0494B1913                 - 40 -

     1  1998-1999 MARKET VALUE/INCOME AID RATIO MUST BE EQUAL TO OR
     2  GREATER THAN FOUR THOUSAND TEN-THOUSANDTHS (0.4000).
     3     (II)  THE BASE SUPPLEMENT IS CALCULATED FOR QUALIFYING SCHOOL
     4  DISTRICTS AS FOLLOWS: MULTIPLY THE SCHOOL DISTRICT'S 1998-1999
     5  MARKET VALUE/INCOME AID RATIO TIMES ITS 1997-1998 AVERAGE DAILY
     6  MEMBERSHIP; MULTIPLY THIS PRODUCT TIMES EIGHTY-FIVE MILLION FIVE
     7  HUNDRED THOUSAND DOLLARS ($85,500,000); DIVIDE THE RESULTANT
     8  PRODUCT BY THE SUM OF THE PRODUCTS OF THE 1998-1999 MARKET
     9  VALUE/INCOME AID RATIO TIMES THE 1997-1998 AVERAGE DAILY
    10  MEMBERSHIP FOR ALL QUALIFYING DISTRICTS.
    11     (3)  A GROWTH SUPPLEMENT IS CALCULATED FOR QUALIFYING SCHOOL
    12  DISTRICTS AS FOLLOWS: MULTIPLY THE INCREASE IN AVERAGE DAILY
    13  MEMBERSHIP BETWEEN THE 1996-1997 AND 1997-1998 SCHOOL YEARS
    14  TIMES FOUR HUNDRED DOLLARS ($400).
    15     (4)  A POVERTY SUPPLEMENT TO QUALIFYING SCHOOL DISTRICTS.
    16     (I)  TO QUALIFY FOR THE POVERTY SUPPLEMENT, THE NUMBER OF
    17  CHILDREN IN LOW-INCOME FAMILIES RESIDING IN THE DISTRICT FOR THE
    18  1997 CALENDAR YEAR DIVIDED BY THE DISTRICT'S AVERAGE DAILY
    19  MEMBERSHIP FOR THE 1997-1998 SCHOOL YEAR MUST BE GREATER THAN OR
    20  EQUAL TO TEN PER CENTUM (10%).
    21     (II)  THE POVERTY SUPPLEMENT IS CALCULATED FOR QUALIFYING
    22  SCHOOL DISTRICTS BY MULTIPLYING THE NUMBER OF CHILDREN IN LOW-
    23  INCOME FAMILIES AS DEFINED IN SECTION 2501(21) RESIDING IN THE
    24  DISTRICT FOR THE 1997 CALENDAR YEAR TIMES FIFTY DOLLARS ($50).
    25     (5)  EACH SCHOOL DISTRICT WILL BE GUARANTEED A MINIMUM
    26  INCREASE TO BE CALCULATED AS FOLLOWS:
    27     (I)  EACH SCHOOL DISTRICT WITH A 1998-1999 MARKET
    28  VALUE/INCOME AID RATIO EQUAL TO OR GREATER THAN SEVEN THOUSAND
    29  TEN-THOUSANDTHS (0.7000) WILL RECEIVE ADDITIONAL FUNDING, AS
    30  NECESSARY, SO THAT THE SUM OF THE AMOUNTS IN CLAUSES (2), (3),
    19970S0494B1913                 - 41 -

     1  (4) AND (5) WILL EQUAL AT LEAST FOUR PER CENTUM (4%) OF THE
     2  AMOUNT IN CLAUSE (1).
     3     (II)  EACH SCHOOL DISTRICT WITH A 1998-1999 MARKET
     4  VALUE/INCOME AID RATIO LESS THAN SEVEN THOUSAND TEN-THOUSANDTHS
     5  (0.7000) WILL RECEIVE ADDITIONAL FUNDING, AS NECESSARY, SO THAT
     6  THE SUM OF THE AMOUNTS IN CLAUSES (2), (3), (4) AND (5) WILL
     7  EQUAL AT LEAST ONE PER CENTUM (1%) OF THE AMOUNT IN CLAUSE (1).
     8     SECTION 19.  SECTION 2509.1(D)(4) OF THE ACT, AMENDED JUNE
     9  25, 1997 (P.L.297, NO.30), IS AMENDED AND THE SECTION IS AMENDED
    10  BY ADDING A SUBSECTION TO READ:
    11     SECTION 2509.1.  PAYMENTS TO INTERMEDIATE UNITS.--* * *
    12     (B.6)  UP TO NINE MILLION DOLLARS ($9,000,000) MAY BE
    13  UTILIZED FOR PROGRAMS ADMINISTERED AND OPERATED DURING THE 1998-
    14  1999 SCHOOL YEAR FOR INSTITUTIONALIZED CHILDREN BY INTERMEDIATE
    15  UNITS AS ESTABLISHED IN SUBSECTION (B.1).
    16     * * *
    17     (D)  * * *
    18     [(4)  FOR THE 1998-1999 SCHOOL YEAR, EACH INTERMEDIATE UNIT
    19  WHICH IS COTERMINOUS TO A SCHOOL DISTRICT OF THE FIRST CLASS OR
    20  FIRST CLASS A SHALL BE PAID A PROPORTIONATE SHARE OF TEN MILLION
    21  THREE HUNDRED THOUSAND DOLLARS ($10,300,000) BASED ON THE AMOUNT
    22  RECEIVED BY THE INTERMEDIATE UNIT FOR THE COST OF OPERATING AND
    23  ADMINISTERING CLASSES OR SCHOOLS FOR CHILDREN WITH
    24  EXCEPTIONALITIES, AS APPROVED BY THE DEPARTMENT OF EDUCATION FOR
    25  THE 1990-1991 SCHOOL YEAR.]
    26     * * *
    27     SECTION 20.  SECTION 2509.3 OF THE ACT, AMENDED JUNE 30, 1995
    28  (P.L.220, NO.26), IS AMENDED TO READ:
    29     SECTION 2509.3.  PAYMENTS ON ACCOUNT OF TRANSPORTATION OF
    30  NONPUBLIC SCHOOL PUPILS.--EACH SCHOOL DISTRICT, REGARDLESS OF
    19970S0494B1913                 - 42 -

     1  CLASSIFICATION, SHALL BE PAID BY THE COMMONWEALTH THE SUM OF
     2  THIRTY-FIVE DOLLARS ($35) FOR EACH NONPUBLIC SCHOOL PUPIL
     3  TRANSPORTED IN THE SCHOOL YEAR 1978-1979 THROUGH THE SCHOOL YEAR
     4  1983-1984. FOR THE SCHOOL YEAR 1984-1985 THROUGH THE SCHOOL YEAR
     5  1989-1990, EACH SCHOOL DISTRICT SHALL BE PAID THE SUM OF SEVENTY
     6  DOLLARS ($70) FOR EACH NONPUBLIC SCHOOL PUPIL TRANSPORTED. FOR
     7  THE SCHOOL YEARS 1990-1991 AND 1991-1992, EACH SCHOOL DISTRICT
     8  SHALL BE PAID THE SUM OF ONE HUNDRED TWENTY-FOUR DOLLARS ($124)
     9  FOR EACH NONPUBLIC SCHOOL PUPIL TRANSPORTED. FOR THE SCHOOL YEAR
    10  1992-1993 AND THE 1993-1994 SCHOOL YEAR, EACH SCHOOL DISTRICT
    11  SHALL BE PAID THE SUM OF ONE HUNDRED FIFTY-NINE DOLLARS ($159)
    12  FOR EACH NONPUBLIC SCHOOL PUPIL TRANSPORTED. FOR THE SCHOOL YEAR
    13  1994-1995 [AND EACH SCHOOL YEAR THEREAFTER,] THROUGH THE SCHOOL
    14  YEAR 1996-1997, EACH SCHOOL DISTRICT SHALL BE PAID THE SUM OF
    15  TWO HUNDRED DOLLARS ($200) FOR EACH NONPUBLIC SCHOOL PUPIL
    16  TRANSPORTED. FOR THE SCHOOL YEAR 1997-1998 AND EACH SCHOOL YEAR
    17  THEREAFTER, EACH SCHOOL DISTRICT SHALL BE PAID THE SUM OF TWO
    18  HUNDRED EIGHTY-FIVE DOLLARS ($285) FOR EACH NONPUBLIC SCHOOL
    19  PUPIL TRANSPORTED.
    20     SECTION 21.  SECTION 2509.5 OF THE ACT IS AMENDED BY ADDING
    21  SUBSECTIONS TO READ:
    22     SECTION 2509.5.  SPECIAL EDUCATION PAYMENTS TO SCHOOL
    23  DISTRICTS.--* * *
    24     (P)  DURING THE 1998-1999 SCHOOL YEAR, EACH SCHOOL DISTRICT
    25  SHALL BE PAID:
    26     (1)  AN AMOUNT TO BE DETERMINED BY MULTIPLYING FIFTEEN
    27  PERCENT (15%) OF ITS SCHOOL-AGE AVERAGE DAILY MEMBERSHIP BY ONE
    28  THOUSAND TWO HUNDRED SIXTY DOLLARS ($1,260); AND
    29     (2)  AN AMOUNT TO BE DETERMINED BY MULTIPLYING ONE PERCENT
    30  (1%) OF ITS SCHOOL-AGE AVERAGE DAILY MEMBERSHIP BY THIRTEEN
    19970S0494B1913                 - 43 -

     1  THOUSAND NINE HUNDRED FIFTY-FIVE DOLLARS ($13,955).
     2     (Q)  DURING THE 1998-1999 SCHOOL YEAR, A PORTION OF THE FUNDS
     3  APPROPRIATED TO THE DEPARTMENT OF EDUCATION FOR SPECIAL
     4  EDUCATION SHALL BE AVAILABLE TO PROVIDE SUPPLEMENTAL FUNDING FOR
     5  SPECIAL EDUCATION TO SCHOOL DISTRICTS WHICH OPERATE SPECIAL
     6  EDUCATION PROGRAMS. ONLY SCHOOL DISTRICTS THAT QUALIFY UNDER THE
     7  PROVISIONS OF SUBSECTION (R) WILL BE ELIGIBLE TO RECEIVE THIS
     8  SUPPLEMENTAL SPECIAL EDUCATION FUNDING.
     9     (R)  SCHOOL DISTRICTS WILL QUALIFY FOR SUPPLEMENTAL PAYMENTS
    10  UNDER SUBSECTION (Q) IF:
    11     (1)  (I)  THE SCHOOL DISTRICT'S SPECIAL EDUCATION
    12  EXPENDITURES FOR THE 1995-1996 SCHOOL YEAR, AS A PERCENTAGE OF
    13  THE SUM OF THE SCHOOL DISTRICT'S 1995-1996 SCHOOL YEAR
    14  EXPENDITURES FOR REGULAR EDUCATION, VOCATIONAL-TECHNICAL
    15  EDUCATION AND SPECIAL EDUCATION IS EQUAL TO OR GREATER THAN THE
    16  SPECIAL EDUCATION EXPENDITURES OF ALL SCHOOL DISTRICTS FOR THE
    17  1995-1996 SCHOOL YEAR, AS A PERCENTAGE OF THE SUM OF THE 1995-
    18  1996 SCHOOL YEAR EXPENDITURES OF ALL SCHOOL DISTRICTS FOR
    19  REGULAR EDUCATION, VOCATIONAL-TECHNICAL EDUCATION AND SPECIAL
    20  EDUCATION; AND
    21     (II)  THE SCHOOL DISTRICT'S MARKET VALUE/INCOME AID RATIO FOR
    22  THE 1997-1998 SCHOOL YEAR IS EQUAL TO OR GREATER THAN SIX
    23  THOUSAND TEN-THOUSANDTHS (.6000); AND
    24     (III)  THE SCHOOL DISTRICT'S EQUALIZED MILLAGE FOR THE 1995-
    25  1996 SCHOOL YEAR IS EQUAL TO OR GREATER THAN TWENTY-ONE (21.0);
    26  OR
    27     (2)  THE SCHOOL DISTRICT SATISFIES THE CRITERION SET FORTH IN
    28  SUBSECTION (R)(1)(I), DOES NOT SATISFY THE CRITERION SET FORTH
    29  IN SUBSECTION (R)(1)(II) BUT THE SCHOOL DISTRICT'S EQUALIZED
    30  MILLAGE FOR THE 1995-1996 SCHOOL YEAR IS EQUAL TO OR GREATER
    19970S0494B1913                 - 44 -

     1  THAN TWENTY-FIVE (25.0); OR
     2     (3)  THE SCHOOL DISTRICT DOES NOT SATISFY THE CRITERIA OF
     3  SUBSECTIONS (R)(1) OR (2) BUT DOES SATISFY THE FOLLOWING:
     4     (I)  THE NUMBER OF SCHOOL-AGE CHILDREN IN LOW-INCOME FAMILIES
     5  AS DEFINED IN SECTION 2501(21) FOR CALENDAR YEAR 1996 IS EQUAL
     6  TO OR GREATER THAN THIRTEEN PERCENT (13%) OF THE SCHOOL
     7  DISTRICT'S 1996-1997 SCHOOL YEAR AVERAGE DAILY MEMBERSHIP; AND
     8     (II)  THE SCHOOL DISTRICT'S MARKET VALUE/INCOME AID RATIO FOR
     9  THE 1997-1998 SCHOOL YEAR IS EQUAL TO OR GREATER THAN FIVE
    10  THOUSAND FIVE HUNDRED TEN THOUSANDTHS (.5500).
    11     (S)  QUALIFYING SCHOOL DISTRICTS WILL RECEIVE AN ADDITIONAL
    12  TWENTY PERCENT (20%) OF THE AMOUNT CALCULATED AT SUBSECTION
    13  (P)(1) OF THIS SECTION. THIS AMOUNT SHALL BE PAID PURSUANT TO
    14  THE PAYMENT SCHEDULE ESTABLISHED IN SUBSECTION (C) OF THIS
    15  SECTION. DURING THE 1998-1999 SCHOOL YEAR, HOWEVER, NO SCHOOL
    16  DISTRICT SHALL RECEIVE LESS PAYMENT UNDER SUBSECTION (P) AND
    17  SUBSECTION (R) THAN THE AMOUNT OF THE PAYMENTS THE SCHOOL
    18  DISTRICT RECEIVED DURING THE 1997-1998 SCHOOL YEAR UNDER
    19  SUBSECTIONS (L) AND (M) OF THIS SECTION.
    20     (T)  ADDITIONALLY, DURING THE 1998-1999 SCHOOL YEAR, EACH
    21  SCHOOL DISTRICT OF THE FIRST CLASS OR FIRST CLASS A BELONGING TO
    22  AN INTERMEDIATE UNIT THE BOUNDARY OF WHICH IS COTERMINUS WITH
    23  THAT OF THE SCHOOL DISTRICT SHALL RECEIVE A PROPORTIONATE SHARE
    24  OF TEN MILLION THREE HUNDRED THOUSAND DOLLARS ($10,300,000)
    25  BASED ON THE AMOUNT RECEIVED BY ITS COTERMINUS INTERMEDIATE UNIT
    26  FOR THE COST OF OPERATING AND ADMINISTERING CLASSES OR SCHOOLS
    27  FOR STUDENTS WITH EXCEPTIONALITIES, AS APPROVED BY THE
    28  DEPARTMENT OF EDUCATION FOR THE 1990-1991 SCHOOL YEAR. THIS
    29  AMOUNT WILL BE ADDED TO THE SCHOOL DISTRICT'S PAYMENT UNDER
    30  SUBSECTION (Q). PROVIDED, HOWEVER, THAT DURING THE 1998-1999
    19970S0494B1913                 - 45 -

     1  SCHOOL YEAR, NO SCHOOL DISTRICT OF THE FIRST CLASS OR FIRST
     2  CLASS A WILL RECEIVE LESS PAYMENT UNDER THIS SUBSECTION AND
     3  SUBSECTION (Q) THAN THE AMOUNT OF THE PAYMENTS THE SCHOOL
     4  DISTRICT'S COTERMINUS INTERMEDIATE UNIT RECEIVED DURING THE
     5  1997-1998 SCHOOL YEAR UNDER SECTION 2509.1(D)(3).
     6     SECTION 22.  SECTION 2595 OF THE ACT, REPEALED JUNE 25, 1997
     7  (P.L.297, NO.30), IS REENACTED AND AMENDED TO READ:
     8     SECTION 2595.  SCHOOL PERFORMANCE INCENTIVES.--[(A)  THE
     9  PURPOSE OF THIS SECTION IS TO ESTABLISH A PROGRAM OF SCHOOL
    10  PERFORMANCE INCENTIVES TO REWARD SIGNIFICANT EDUCATIONAL
    11  IMPROVEMENTS, TO EVOKE FURTHER SCHOOL PERFORMANCE IMPROVEMENT
    12  AND TO FOSTER COLLEGIAL PARTICIPATION BY SCHOOL EMPLOYES IN
    13  IMPROVING SCHOOL PERFORMANCE.
    14     (B)  ANY PUBLIC ELEMENTARY SCHOOL, SECONDARY SCHOOL OR AREA
    15  VOCATIONAL-TECHNICAL SCHOOL IS ELIGIBLE TO PARTICIPATE IN THE
    16  SCHOOL PERFORMANCE PROGRAM.
    17     (C)  (1)  SCHOOL PERFORMANCE WILL BE DETERMINED BY
    18  IMPROVEMENTS IN STUDENT ACCOMPLISHMENT USING THE FOLLOWING
    19  CRITERIA:
    20     (I)  STUDENT ACHIEVEMENT AS MEASURED BY PERFORMANCE ON TESTS
    21  DEVELOPED OR APPROVED BY THE STATE BOARD THROUGH REGULATION AND
    22  PURSUANT TO THIS ACT;
    23     (II)  DROPOUT RATES AS MEASURED BY THE INCREASE IN THE
    24  PROPORTION OF STUDENTS CONTINUING THEIR EDUCATION IN GRADES
    25  SEVEN THROUGH TWELVE; OR
    26     (III)  STUDENTS PREPARED TO GO ON TO HIGHER EDUCATION AS
    27  MEASURED BY AN INCREASE IN THE PROPORTION OF HIGH SCHOOL
    28  STUDENTS TAKING THE SCHOLASTIC APTITUDE TESTS AND AN INCREASE IN
    29  THE AVERAGE SCORES ON SCHOLASTIC APTITUDE TESTS.
    30     (2)  IMPROVEMENTS IN SCHOOL PERFORMANCE SHALL BE CALCULATED
    19970S0494B1913                 - 46 -

     1  ON PERFORMANCE LEVELS DURING THE YEAR PRIOR TO THE YEAR IN WHICH
     2  INCENTIVE PAYMENTS ARE MADE COMPARED TO PERFORMANCE LEVELS
     3  DURING EITHER THE IMMEDIATELY PRECEDING YEAR OR THE AVERAGE OF
     4  THE TWO IMMEDIATELY PRECEDING YEARS.
     5     (3)  ALL DATA SUBMISSIONS FROM THE SCHOOLS SHALL BE SUBJECT
     6  TO AUDIT, AND ANY INCENTIVE PAYMENT AMOUNTS SUBSEQUENTLY
     7  DETERMINED TO BE EXCESSIVE DUE TO INAPPROPRIATE DATA SHALL BE
     8  DEDUCTED FROM SUBSEQUENT EQUALIZED SUBSIDY FOR BASIC EDUCATION
     9  PAYMENTS.
    10     (4)  THE SECRETARY OF EDUCATION SHALL MONITOR AND EVALUATE
    11  THE CRITERIA FOR SELECTION OF SCHOOLS AND SHALL ANNUALLY
    12  DETERMINE AND PUBLISH THE REQUIRED LEVEL OF PERFORMANCE
    13  IMPROVEMENT FOR SCHOOLS TO BE AWARDED INCENTIVE PAYMENTS.
    14  BEGINNING WITH PAYMENTS TO BE MADE DURING THE 1990-1991 FISCAL
    15  YEAR, ANY REVISIONS SHALL BE PROPOSED ON OR BEFORE SEPTEMBER 1
    16  OF THE FISCAL YEAR PRIOR TO THE FISCAL YEAR IN WHICH THE
    17  INCENTIVE PAYMENTS ARE TO BE DISTRIBUTED.
    18     (D)  THE SECRETARY OF EDUCATION SHALL AWARD ON ACCOUNT OF
    19  EACH SCHOOL THAT MEETS THE REQUIRED LEVEL OF PERFORMANCE
    20  IMPROVEMENT AN AMOUNT DETERMINED BY DIVIDING THE TOTAL FULL-TIME
    21  EQUIVALENT PROFESSIONAL EMPLOYES OF THE QUALIFYING SCHOOLS INTO
    22  THE AMOUNT ANNUALLY APPROPRIATED FOR THE SCHOOL PERFORMANCE
    23  INCENTIVES. ALL AWARDS SHALL BE LIMITED TO FUNDS APPROPRIATED
    24  FOR THIS PURPOSE. THE INCENTIVE AWARDS WILL BE DISTRIBUTED TO
    25  THE SCHOOL DISTRICTS BASED ON THE NUMBER OF FULL-TIME EQUIVALENT
    26  PROFESSIONAL EMPLOYES AT THE QUALIFYING SCHOOL. EACH SCHOOL
    27  PERFORMANCE INCENTIVE PAYMENT SHALL BE MADE IN A SINGLE PAYMENT,
    28  AND THE SECRETARY OF EDUCATION SHALL DRAW HIS REQUISITION UPON
    29  THE STATE TREASURER IN FAVOR OF EACH SCHOOL DISTRICT WITH
    30  QUALIFYING SCHOOLS.
    19970S0494B1913                 - 47 -

     1     (E)  (1)  INCENTIVE FUNDS SHALL BE PAID TO THE SCHOOL
     2  DISTRICT FOR USE ONLY BY SCHOOLS WHICH QUALIFY PURSUANT TO
     3  SUBSECTION (C). PAYMENTS RECEIVED BY SCHOOL DISTRICTS WITH
     4  QUALIFYING SCHOOLS MAY BE APPLIED TO ONE OR MORE OF THE
     5  FOLLOWING USES:
     6     (I)  TEACHING MATERIALS, INCLUDING BOOKS, AUDIO-VISUAL AIDS
     7  AND COMPUTER SOFTWARE.
     8     (II)  INITIATIVES WHICH REACH TO FAMILIES TO EVOKE HOME
     9  SUPPORT OF THE WORK OF THE SCHOOL AND OTHERWISE INVOLVE FAMILIES
    10  IN THE SCHOOL.
    11     (III)  ASSISTANCE IN THE INTRODUCTION OR ADVANCEMENT OF
    12  CURRICULAR AND INSTRUCTIONAL IMPROVEMENTS.
    13     (IV)  OTHER USES REASONABLY EXPECTED TO IMPROVE SCHOOL
    14  PERFORMANCE OR TO ENHANCE TEACHING AND LEARNING OR THE
    15  EDUCATIONAL CLIMATE OF THE SCHOOL.
    16     (2)  USES OF INCENTIVE FUNDS, AS PROVIDED FOR IN CLAUSE (1)
    17  OF THIS SUBSECTION, IN EACH SCHOOL SHALL BE DETERMINED BY THE
    18  REGULAR FULL-TIME AND PART-TIME SCHOOL EMPLOYES IN THE SCHOOL
    19  THROUGH A SELECTION PROCESS OF THEIR CHOICE.
    20     (F)  INCENTIVE FUNDS PROVIDED PURSUANT TO THIS SECTION SHALL
    21  BE USED TO SUPPLEMENT AND NOT TO SUPPLANT ANY OTHER SOURCES OF
    22  FUNDS FOR THE OPERATION OF THE QUALIFYING SCHOOLS AND THE
    23  INSTRUCTIONAL PROGRAM OF SUCH SCHOOLS.
    24     (G)  (1)  EACH SCHOOL DISTRICT RECEIVING A SCHOOL PERFORMANCE
    25  INCENTIVE PAYMENT SHALL REPORT TO THE SECRETARY OF EDUCATION NO
    26  LATER THAN OCTOBER 31 OF THE FISCAL YEAR FOLLOWING THE YEAR IN
    27  WHICH SUCH FUNDS WERE EXPENDED ON THE USE OF THE FUNDS, THE
    28  RESULTS OF THE USE OF SUCH FUNDS AND THE MAINTENANCE OF THE
    29  FISCAL EFFORT ON BEHALF OF QUALIFYING SCHOOL BUILDINGS OF SUCH
    30  SCHOOL DISTRICTS. REPORTS BY SCHOOL DISTRICTS, AS PROVIDED FOR
    19970S0494B1913                 - 48 -

     1  IN THIS SUBSECTION, SHALL BE SUBMITTED IN A FORM DETERMINED BY
     2  THE SECRETARY OF EDUCATION.
     3     (2)  THE SECRETARY OF EDUCATION SHALL FILE A REPORT BY THE
     4  END OF THE 1998-1999 FISCAL YEAR AND ANNUALLY THEREAFTER WITH
     5  THE EDUCATION COMMITTEE OF THE HOUSE OF REPRESENTATIVES AND THE
     6  EDUCATION COMMITTEE OF THE SENATE A REPORT ON THE OPERATION OF
     7  THE SCHOOL PERFORMANCE INCENTIVES PROGRAM PROVIDED FOR HEREIN,
     8  INCLUDING ANY RECOMMENDATIONS FOR CHANGES IN THE SELECTION
     9  CRITERIA.
    10     (3)  BY SEPTEMBER 15, 1992, THE SECRETARY OF EDUCATION SHALL
    11  REPORT TO THE CHAIRMAN AND MINORITY CHAIRMAN OF THE EDUCATION
    12  COMMITTEE OF THE HOUSE OF REPRESENTATIVES AND TO THE CHAIRMAN
    13  AND MINORITY CHAIRMAN OF THE EDUCATION COMMITTEE OF THE SENATE
    14  ON: THE IDENTIFICATION OF EXEMPLARY EDUCATIONAL PROGRAMS
    15  INITIATED IN VARIOUS SCHOOLS WHICH RESULTED IN SUPERIOR
    16  PERFORMANCE IMPROVEMENT; RECOMMENDATIONS OF METHODS OF
    17  ENCOURAGING REPLICATION OF THESE PROGRAMS; AND EVALUATION AND
    18  RECOMMENDATIONS ON WHETHER THESE PROGRAMS SHOULD BE CONTINUED OR
    19  ALTERED.
    20     (H)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO DEPRIVE
    21  ANY EMPLOYE, ANY EMPLOYE ORGANIZATION OR ANY PUBLIC EMPLOYER OF
    22  ANY RIGHTS, INCLUDING RIGHTS OF REPRESENTATION, ENJOYED UNDER
    23  THE ACT OF JULY 23, 1970 (P.L.563, NO.195), KNOWN AS THE "PUBLIC
    24  EMPLOYE RELATIONS ACT," OR UNDER OTHER PROVISIONS OF THIS ACT.]
    25  (A)  THE PURPOSE OF THIS SECTION IS TO ESTABLISH A PROGRAM OF
    26  SCHOOL PERFORMANCE INCENTIVES TO REWARD SIGNIFICANT EDUCATIONAL
    27  IMPROVEMENTS, TO EVOKE FURTHER SCHOOL PERFORMANCE IMPROVEMENT
    28  AND TO FOSTER COLLEGIAL PARTICIPATION BY SCHOOL EMPLOYES IN
    29  IMPROVING SCHOOL PERFORMANCE.
    30     (B)  ANY PUBLIC ELEMENTARY SCHOOL, SECONDARY SCHOOL OR AREA
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     1  VOCATIONAL-TECHNICAL SCHOOL IS ELIGIBLE TO PARTICIPATE IN THE
     2  SCHOOL PERFORMANCE PROGRAM.
     3     (C)  (1)  SCHOOL PERFORMANCE WILL BE DETERMINED BY
     4  IMPROVEMENTS IN STUDENT ACCOMPLISHMENT USING THE FOLLOWING
     5  CRITERIA:
     6     (I)  STUDENT ACHIEVEMENT AS MEASURED BY PERFORMANCE ON
     7  ASSESSMENTS DEVELOPED BY THE DEPARTMENT OR BY THE STATE BOARD OF
     8  EDUCATION THROUGH REGULATION AND PURSUANT TO THIS ACT;
     9     (II)  GRADUATION RATES AS MEASURED BY THE INCREASE IN THE
    10  PROPORTION OF STUDENTS CONTINUING THEIR EDUCATION IN GRADES NINE
    11  THROUGH TWELVE;
    12     (III)  ATTENDANCE RATES AS MEASURED BY AN INCREASE IN THE
    13  PROPORTION OF STUDENTS ATTENDING SCHOOL ON A REGULAR BASIS; OR
    14     (IV)  RATES OF EMPLOYMENT RELATED TO THE TRAINING RECEIVED BY
    15  AREA VOCATIONAL-TECHNICAL SCHOOL GRADUATES UNTIL SUCH TIME AS AN
    16  OCCUPATIONAL COMPETENCY TESTING PROGRAM IS ESTABLISHED AND WHICH
    17  MEETS THE MEASUREMENT REQUIREMENTS IN THIS SECTION.
    18     (2)  IMPROVEMENTS IN SCHOOL PERFORMANCE SHALL BE CALCULATED
    19  ON PERFORMANCE LEVELS COMPARING THE ASSESSMENT RESULTS FROM ONE
    20  SCHOOL YEAR TO THE AVERAGE OF TWO OR MORE YEARS, AS DETERMINED
    21  BY THE DEPARTMENT OF EDUCATION.
    22     (3)  ALL DATA SUBMISSIONS FROM THE SCHOOLS SHALL BE SUBJECT
    23  TO AUDIT, AND ANY INCENTIVE PAYMENT AMOUNTS SUBSEQUENTLY
    24  DETERMINED TO BE EXCESSIVE DUE TO INAPPROPRIATE DATA SHALL BE
    25  DEDUCTED FROM SUBSEQUENT BASIC EDUCATION FUNDING PAYMENTS.
    26     (4)  THE SECRETARY OF EDUCATION SHALL MONITOR AND EVALUATE
    27  THE CRITERIA FOR SELECTION OF SCHOOLS AND SHALL ANNUALLY
    28  DETERMINE AND PUBLISH THE REQUIRED LEVEL OF PERFORMANCE
    29  IMPROVEMENT FOR SCHOOLS TO BE AWARDED INCENTIVE PAYMENTS.
    30     (D)  THE SECRETARY OF EDUCATION SHALL AWARD ON ACCOUNT OF
    19970S0494B1913                 - 50 -

     1  EACH SCHOOL THAT MEETS THE REQUIRED LEVEL OF PERFORMANCE
     2  IMPROVEMENT AN AMOUNT DETERMINED BY MULTIPLYING THE NUMBER OF
     3  STUDENTS IN THE SCHOOL BY THE FIXED AMOUNT PER STUDENT
     4  ESTABLISHED ANNUALLY WHEN THE APPROPRIATION FOR THE SCHOOL
     5  PERFORMANCE INCENTIVES FUNDING IS ESTABLISHED. ALL AWARDS SHALL
     6  BE LIMITED TO FUNDS APPROPRIATED FOR THIS PURPOSE. THE INCENTIVE
     7  AWARDS WILL BE DISTRIBUTED TO THE SCHOOL DISTRICTS BASED ON THE
     8  NUMBER OF STUDENTS ENROLLED IN THE QUALIFYING SCHOOL OCTOBER 1
     9  OF THE SCHOOL YEAR IN WHICH THE CRITERIA FOR THE AWARD WAS MET.
    10  EACH SCHOOL PERFORMANCE INCENTIVE PAYMENT SHALL BE MADE IN A
    11  SINGLE PAYMENT, AND THE SECRETARY OF EDUCATION SHALL DRAW HIS
    12  REQUISITION UPON THE STATE TREASURER IN FAVOR OF EACH SCHOOL
    13  DISTRICT WITH QUALIFYING SCHOOLS.
    14     (E)  (1)  INCENTIVE FUNDS SHALL BE PAID TO THE SCHOOL
    15  DISTRICT FOR USE ONLY BY SCHOOLS WHICH QUALIFY PURSUANT TO
    16  SUBSECTION (C). PAYMENTS RECEIVED BY SCHOOL DISTRICTS WITH
    17  QUALIFYING SCHOOLS MAY BE APPLIED TO ONE OR MORE OF THE
    18  FOLLOWING USES:
    19     (I)  INSTRUCTIONAL EQUIPMENT AND MATERIALS, INCLUDING, BUT
    20  NOT LIMITED TO, TEXTBOOKS, LIBRARY HOLDINGS, LABORATORY
    21  EQUIPMENT AND SUPPLIES; COMPUTERS, SOFTWARE, TELECOMMUNICATIONS
    22  EQUIPMENT AND SUPPORT SERVICES; FACILITIES AND SUPPORT SERVICES
    23  FOR DISTANCE LEARNING AND STAFF DEVELOPMENT.
    24     (II)  INITIATIVES WHICH INVOLVE PARENTS AND FAMILIES IN THE
    25  SCHOOL.
    26     (III)  ASSISTANCE IN THE INTRODUCTION OR ADVANCEMENT OF
    27  CURRICULAR AND INSTRUCTIONAL IMPROVEMENTS.
    28     (IV)  OTHER USES REASONABLY EXPECTED TO IMPROVE SCHOOL
    29  PERFORMANCE OR TO ENHANCE TEACHING AND LEARNING IN THE SCHOOL.
    30     (V)  AT LEAST FIFTY PERCENT (50%) OF THE AMOUNT RECEIVED MUST
    19970S0494B1913                 - 51 -

     1  BE SPENT ON THE PLANNING, DELIVERY AND ASSESSMENT OF THE
     2  SCHOOL'S INSTRUCTIONAL PROGRAM, INCLUDING STAFF DEVELOPMENT FOR
     3  THESE PURPOSES.
     4     (VI)  NO MORE THAN TWENTY-FIVE PERCENT (25%) OF THE TOTAL
     5  RECEIVED FOR THE QUALIFYING SCHOOL SHALL BE FOR DIRECT PAYMENTS
     6  TO THE PROFESSIONAL EMPLOYES OF THE SCHOOL.
     7     (2)  USES OF INCENTIVE FUNDS, AS PROVIDED IN CLAUSE (1) OF
     8  THIS SUBSECTION, IN EACH SCHOOL SHALL BE DETERMINED BY A
     9  COMMITTEE CHAIRED BY THE PRINCIPAL OF THE SCHOOL AND COMPOSED OF
    10  TEACHERS, SUPPORT PERSONNEL, PARENTS, COMMUNITY AND BUSINESS
    11  REPRESENTATIVES.
    12     (F)  INCENTIVE FUNDS PROVIDED PURSUANT TO THIS SECTION SHALL
    13  BE USED TO SUPPLEMENT AND NOT TO SUPPLANT ANY OTHER SOURCES OF
    14  FUNDS FOR THE OPERATION OF QUALIFYING SCHOOLS AND THE
    15  INSTRUCTIONAL PROGRAM OF SUCH SCHOOLS.
    16     (G)  (1)  EACH SCHOOL DISTRICT WITH ONE OR MORE SCHOOLS
    17  RECEIVING A SCHOOL PERFORMANCE INCENTIVE PAYMENT SHALL REPORT TO
    18  THE SECRETARY OF EDUCATION NO LATER THAN OCTOBER 31 OF THE
    19  FISCAL YEAR FOLLOWING THE YEAR IN WHICH SUCH FUNDS WERE EXPENDED
    20  ON THE USE OF THE FUNDS, THE RESULTS OF THE USE OF SUCH FUNDS
    21  AND THE MAINTENANCE OF THE FISCAL EFFORT ON BEHALF OF THE
    22  QUALIFIED SCHOOL BUILDINGS OF SUCH SCHOOL DISTRICTS. REPORTS BY
    23  SCHOOL DISTRICTS, AS PROVIDED FOR IN THIS SUBSECTION, SHALL BE
    24  SUBMITTED IN A FORM DETERMINED BY THE SECRETARY OF EDUCATION.
    25     (2)  THE SECRETARY OF EDUCATION SHALL FILE A REPORT BY THE
    26  END OF 1998-1999 FISCAL YEAR AND ANNUALLY THEREAFTER WITH THE
    27  EDUCATION COMMITTEE OF THE SENATE AND THE EDUCATION COMMITTEE OF
    28  THE HOUSE OF REPRESENTATIVES A REPORT ON THE OPERATION OF THE
    29  SCHOOL PERFORMANCE INCENTIVES PROGRAM PROVIDED FOR HEREIN,
    30  INCLUDING ANY RECOMMENDATIONS FOR CHANGES IN THE SELECTION
    19970S0494B1913                 - 52 -

     1  CRITERIA.
     2     (H)  NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO
     3  SUPERSEDE OR PREEMPT ANY PROVISIONS OF A COLLECTIVE BARGAINING
     4  AGREEMENT NEGOTIATED BY A SCHOOL AND THE EMPLOYE ORGANIZATION
     5  DISTRICT, INTERMEDIATE UNIT OR AREA VOCATIONAL-TECHNICAL SCHOOL
     6  THAT IS IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION.
     7     SECTION 23.  SECTION 2598 OF THE ACT IS REPEALED.
     8     SECTION 24.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
     9     SECTION 2599.  ADMINISTRATIVE/INSTRUCTIONAL CONSOLIDATION
    10  INCENTIVES.--(A)  THE PURPOSE OF THIS SECTION IS TO ESTABLISH A
    11  PROGRAM OF INCENTIVES TO SCHOOL ENTITIES TO ENCOURAGE GREATER
    12  EFFICIENCY IN THE MANAGEMENT OF SCHOOLS AND THE CONSOLIDATION OF
    13  ADMINISTRATIVE AND INSTRUCTIONAL PROGRAMMING.
    14     (B)  ANY SCHOOL DISTRICT, AREA VOCATIONAL-TECHNICAL SCHOOL,
    15  INTERMEDIATE UNIT OR JOINT SCHOOL IS ELIGIBLE TO PARTICIPATE IN
    16  THE CONSOLIDATION INCENTIVES PROGRAM AND SHALL BE CONSIDERED A
    17  SCHOOL ENTITY FOR THE PURPOSES OF THIS SECTION.
    18     (C)  FUNDING WILL BE PROVIDED ONLY TO PROGRAMS WHICH HAVE THE
    19  PARTICIPATION OF TWO OR MORE SCHOOL ENTITIES. FUNDING WILL BE
    20  PROVIDED FOR PROGRAMS WHICH ARE INITIATED AFTER JULY 1, 1998.
    21     (D)  (1)  FUNDING WILL BE PROVIDED THROUGH A COMPETITIVE
    22  REQUEST FOR PROPOSAL PROCESS. PROPOSALS WILL BE EVALUATED BY A
    23  TEAM OF DEPARTMENT OF EDUCATION AND NONDEPARTMENT PERSONNEL. THE
    24  EVALUATIONS WILL BE COMPLETED AND FUNDS AWARDED IN THE SECOND
    25  SEMESTER OF THE SCHOOL YEAR FOLLOWING THE SUBMISSION OF A
    26  PROPOSAL.
    27     (2)  FUNDS MAY BE AWARDED FOR TWO YEARS. SCHOOL ENTITIES MAY
    28  BE AWARDED UP TO FIFTY PERCENT (50%) OF THE SAVINGS THE FIRST
    29  YEAR. THE AWARD IN THE SECOND YEAR MAY BE UP TO ONE-HALF OF THE
    30  AMOUNT OF THE FIRST YEAR'S AWARD.
    19970S0494B1913                 - 53 -

     1     (3)  THE DEPARTMENT OF EDUCATION WILL ESTABLISH GENERAL
     2  CRITERIA FOR QUALIFYING FOR THESE FUNDS:
     3     (I)  FOR RATING PURPOSES, SAVINGS WILL BE CALCULATED AS A
     4  PERCENTAGE OF THE APPLICABLE PART OF THE BUDGETS OF THE ENTITIES
     5  INVOLVED IN THE CONSOLIDATION;
     6     (II)  THE DEPARTMENT OF EDUCATION WILL ESTABLISH MULTIPLE
     7  CATEGORIES TO ALLOW FOR AWARDS BASED ON THE SIZE AND VARIETY OF
     8  PROPOSALS;
     9     (III)  AWARDS FOR CONSOLIDATION OF ADMINISTRATIVE SERVICES
    10  MUST RESULT IN THE REDUCTION OF THE OVERALL ADMINISTRATIVE
    11  COMPLEMENTS OF THE PARTICIPATING ENTITIES;
    12     (IV)  AWARDS FOR CONSOLIDATION OF INSTRUCTIONAL STAFF MUST
    13  RESULT IN THE REDUCTION OF THE OVERALL STAFFING COMPLEMENT OF
    14  THE PARTICIPATING ENTITIES OR THE PARTICIPATING SCHOOL ENTITIES
    15  NOT HIRING ADDITIONAL PERSONNEL.
    16     (4)  ALL DATA SUBMISSIONS FROM THE SCHOOL ENTITIES SHALL BE
    17  SUBJECT TO AUDIT, AND ANY INCENTIVE PAYMENTS SUBSEQUENTLY
    18  DETERMINED TO BE EXCESSIVE DUE TO INAPPROPRIATE DATA WILL BE
    19  DEDUCTED FROM SUBSEQUENT BASIC EDUCATION FUNDING PAYMENTS.
    20     (5)  INCENTIVE FUNDS SHALL BE PAID TO SCHOOL ENTITIES FOR USE
    21  IN CONSOLIDATED PROGRAMS.
    22     (6)  NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO
    23  SUPERSEDE OR PREEMPT ANY PROVISIONS OF A COLLECTIVE BARGAINING
    24  AGREEMENT NEGOTIATED BY A SCHOOL DISTRICT, INTERMEDIATE UNIT OR
    25  AREA VOCATIONAL-TECHNICAL SCHOOL AND THE EMPLOYE ORGANIZATION
    26  THAT IS IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION.
    27     SECTION 25.  THE AMENDMENT OF SECTION 922.1-A OF THE ACT
    28  SHALL APPLY TO SERVICES PROVIDED IN THE SCHOOL YEAR 1998-1999
    29  AND EACH SCHOOL YEAR THEREAFTER.
    30     SECTION 26.  (A)  A SCHOOL DISTRICT OF THE FIRST CLASS SHALL
    19970S0494B1913                 - 54 -

     1  COMMENCE THE 1998-1999 SCHOOL YEAR NO LATER THAN SEPTEMBER 8,
     2  1998, AND SHALL PROVIDE SCHOOL STUDENTS WITH A MINIMUM
     3  INSTRUCTIONAL YEAR AS REQUIRED BY SECTION 1501 OF THE ACT TO BE
     4  COMPLETED NO LATER THAN JUNE 30, 1999.
     5     (B)  ALL PROFESSIONAL EMPLOYEES AND OTHER EMPLOYEES OF THE
     6  SCHOOL DISTRICT OF THE FIRST CLASS SHALL REPORT FOR DUTY AND
     7  FULFILL THEIR DUTIES AS REQUIRED BY THE APPROPRIATE CONTRACT OR
     8  WORK AGREEMENT. ANY EMPLOYEE OF THE SCHOOL DISTRICT OF THE FIRST
     9  CLASS WHO FAILS TO COMPLY WITH THE PROVISIONS OF THIS SECTION
    10  SHALL BE SUBJECT TO SUSPENSION OF ANY CERTIFICATE FOR A PERIOD
    11  OF ONE YEAR, TO DISCIPLINARY ACTION FOR ILLEGAL WORK STOPPAGE,
    12  OR TO OTHER DISCIPLINE AS PROVIDED FOR IN THIS ACT.
    13     (C)  IN ADDITION TO THE PENALTIES SET FORTH IN SUBSECTION
    14  (B), ANY EMPLOYEE, ADMINISTRATOR OR PERSON RESPONSIBLE FOR
    15  UNLOCKING, OPENING OR MAINTAINING A SCHOOL BUILDING WHO DOES NOT
    16  FULFILL THEIR RESPONSIBILITY OR IMPEDES OTHERS FROM FULFILLING
    17  THEIR RESPONSIBILITIES, SHALL BE SUBJECT TO DISCIPLINARY ACTION.
    18  IN ADDITION, ANY INDIVIDUAL WHO VIOLATES THIS SECTION WHO IS A
    19  MEMBER OF THE PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES RETIREMENT
    20  SYSTEM SHALL BE PERMANENTLY BARRED FROM EXERCISING ANY OPTION
    21  FOR EARLY RETIREMENT WHICH MAY BE AUTHORIZED NOW OR IN THE
    22  FUTURE.
    23     SECTION 27.  THE PENNSYLVANIA SUPREME COURT SHALL HAVE
    24  EXCLUSIVE JURISDICTION TO HEAR ANY CHALLENGE TO OR TO RENDER A
    25  DECLARATORY JUDGMENT CONCERNING THE CONSTITUTIONALITY OF
    26  SECTIONS 691(C) AND 696 OF THE ACT AND ISSUES RELATED TO
    27  COLLECTIVE BARGAINING ARISING UNDER THOSE SECTIONS. THE SUPREME
    28  COURT IS AUTHORIZED TO TAKE SUCH ACTION AS IT DEEMS APPROPRIATE,
    29  CONSISTENT WITH THE SUPREME COURT RETAINING JURISDICTION OVER
    30  SUCH A MATTER, TO FIND FACTS OR TO EXPEDITE A FINAL JUDGMENT IN
    19970S0494B1913                 - 55 -

     1  CONNECTION WITH SUCH A CHALLENGE OR REQUEST FOR DECLARATORY
     2  RELIEF.
     3     SECTION 28.  (A)  THE ACT OF JULY 23, 1970 (P.L.563, NO.195),
     4  KNOWN AS THE PUBLIC EMPLOYE RELATIONS ACT, IS REPEALED INSOFAR
     5  AS IT IS INCONSISTENT WITH THE PROVISIONS OF THIS ACT.
     6     (B)  ALL OTHER ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS
     7  THEY ARE INCONSISTENT WITH THIS ACT.
     8     SECTION 29.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
     9         (1)  THE AMENDMENT OR ADDITION OF SECTIONS 507, 691 AND
    10     696 OF THE ACT SHALL TAKE EFFECT IMMEDIATELY.
    11         (2)  SECTIONS 26, 27 AND 28 OF THIS ACT AND THIS SECTION
    12     SHALL TAKE EFFECT IMMEDIATELY.
    13         (3)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT JULY 1,
    14     1998.











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