Bill Text: PA HB759 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Providing for payment of indebtedness by charter school entities; and further providing for contents of application and for funding for charter schools, for term and form of charter, for funding for charter school entities, for annual reports and assessments, for assessment and evaluation and for establishment of cyber charter school.

Spectrum: Strong Partisan Bill (Republican 16-1)

Status: (Introduced - Dead) 2013-02-25 - Referred to EDUCATION [HB759 Detail]

Download: Pennsylvania-2013-HB759-Introduced.html

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PRINTER'S NO. 871

 

THE GENERAL ASSEMBLY OF PENNSYLVANIA

 

HOUSE BILL

No.

759

Session of 2013

 

 

 

INTRODUCED BY REESE, BENNINGHOFF, EVANKOVICH, EVERETT, FLECK, GROVE, MICOZZIE, MOUL, MUNDY, MURT, REED, SACCONE, SAYLOR, TOBASH AND SWANGER, FEBRUARY 25, 2013

 

 

REFERRED TO COMMITEE ON EDUCATION, FEBRUARY 25, 2013

 

 

 

AN ACT

 

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," providing for payment of indebtedness
by charter school entities; and further providing for
contents of application and for funding for charter schools,
for term and form of charter, for funding for charter school
entities, for annual reports and assessments, for assessment
and evaluation and for establishment of cyber charter school.

The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:

Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding a
section to read:

Section 1716.1-A. Payment of Indebtedness by Charter School 
Entities.--(a) The board of trustees of a charter school entity 
shall supply the secretary and, in the case of a charter school 
or regional charter school, the local board of school directors 
a list of the amount of rental payments which are guarantees for 
school building debt or bonds that become due during the fiscal 

year together with the amount paid on each item of indebtedness. 
Any charter school entity that elects to issue debt shall hold 
in escrow an amount sufficient to pay the annual amount of the 
sum of the principal maturing or subject to mandatory redemption 
and interest owing by the charter school entity or sinking fund 
deposit due by the charter school entity.

(b) (1) In any case where the board of trustees of a
charter school entity fails to pay or to provide for the payment
of:

(i) any indebtedness at date of maturity or date of
mandatory redemption or on any sinking fund deposit date; or

(ii) any interest due on such indebtedness on any interest
payment date or on any sinking fund deposit date in accordance
with the schedule under which the bonds were issued,

the bank or trustee for the bonds shall notify the board of
trustees of its obligation and shall immediately notify the
secretary and, in the case of a charter school or regional
charter school, the local board of school directors.

(2) The secretary shall withhold any payment due the charter
school entity in any amount necessary to fully fund the amount
held in escrow by the charter school entity which shall be equal
to the sum of the principal amount maturing or subject to
mandatory redemption and interest owing by the charter school
entity or sinking fund deposit due by the charter school entity
and shall require payover of the amount withheld to the bank or
trustee acting as the sinking fund depositary for the bond issue
from the escrow account.

(c) As used in this section, "charter school entity" shall
mean a charter school, cyber charter school or regional charter
school.

Section 2. Section 1719-A of the act, added June 19, 1997
(P.L.225, No.22), is amended to read:

Section 1719-A. Contents of Application.--An application to
establish a charter school shall include all of the following
information:

(1) The identification of the charter applicant.

(2) The name of the proposed charter school.

(3) The grade or age levels served by the school.

(4) The proposed governance structure of the charter school,
including a description and method for the appointment or
election of members of the board of trustees.

(5) The mission and education goals of the charter school,
the curriculum to be offered and the methods of assessing
whether students are meeting educational goals.

(6) The admission policy and criteria for evaluating the
admission of students which shall comply with the requirements
of section 1723-A.

(7) Procedures which will be used regarding the suspension
or expulsion of pupils. Said procedures shall comply with
section 1318.

(8) Information on the manner in which community groups will
be involved in the charter school planning process.

(9) The financial plan for the charter school and the
provisions which will be made for auditing the school under
section 437.

(10) Procedures which shall be established to review
complaints of parents regarding the operation of the charter
school.

(11) A description of and address of the physical facility
in which the charter school will be located and the ownership

thereof and any lease arrangements.

(12) Information on the proposed school calendar for the
charter school, including the length of the school day and
school year consistent with the provisions of section 1502.

(13) The proposed faculty and a professional development
plan for the faculty of a charter school.

(14) Whether any agreements have been entered into or plans
developed with the local school district regarding participation
of the charter school students in extracurricular activities
within the school district. Notwithstanding any provision to the
contrary, no school district of residence shall [prohibit]:

(i) Prohibit a student of a charter school from
participating in any extracurricular activity of that school
district of residence: Provided, That the student is able to
fulfill all of the requirements of participation in such
activity and the charter school does not provide the same
extracurricular activity.

(ii) Impose any activity fee on charter or cyber charter
school students unless the school district imposes the same
activity fee on students enrolled in the school district.

(15) A report of criminal history record, pursuant to
section 111, for all individuals who shall have direct contact
with students.

(16) An official clearance statement regarding child injury
or abuse from the Department of Public Welfare as required by 23
Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for
employment in schools) for all individuals who shall have direct
contact with students.

(17) How the charter school will provide adequate liability
and other appropriate insurance for the charter school, its

employes and the board of trustees of the charter school.

Section 3. Section 1720-A of the act, amended July 9, 2008,
(P.L.846, No.61), is amended to read:

Section 1720-A. Term and Form of Charter.--(a) Upon
approval of a charter application under section 1717-A, a
written charter shall be developed which shall contain the
provisions of the charter application and which shall be signed
by the local board of school directors of a school district, by
the local boards of school directors of a school district in the
case of a regional charter school or by the chairman of the
appeal board pursuant to section 1717-A(i)(5) and the board of
trustees of the charter school. This written charter, when duly
signed by the local board of school directors of a school
district, or by the local boards of school directors of a school
district in the case of a regional charter school, and the
charter school's board of trustees, shall act as legal
authorization for the establishment of a charter school. This
written charter shall be legally binding on both the local board
of school directors of a school district and the charter
school's board of trustees. Except as otherwise provided in
subsection (b), the charter shall be for a period of [no less
than three (3) nor more than] five (5) years and may be renewed
for [five (5)] ten (10) year periods upon reauthorization by the
local board of school directors of a school district or the
appeal board. A charter will be granted only for a school
organized as a public, nonprofit corporation.

(b) (1) Notwithstanding subsection (a), [a] the following 
shall apply:

(i) An initial charter granted by a school district of the 
first class shall be for a period of no less than three (3) nor 

more than five (5) years and may be renewed for five (5) year 
periods upon reauthorization by the governing board of the 
school district or the appeal board.

(ii) A governing board of a school district of the first
class may renew a charter for a period of one (1) year if the
[board of school directors] governing board determines that
there is insufficient data concerning the charter school's
academic performance to adequately assess that performance and
determines that an additional year of performance data would
yield sufficient data to assist the governing board in its
decision whether to renew the charter for a period of five (5)
years.

(2) A one-year renewal pursuant to paragraph (1) shall not
be considered an adjudication and may not be appealed to the
State Charter School Appeal Board.

(3) A governing board of a school district of the first
class does not have the authority to renew a charter for
successive one (1) year periods.

Section 4. Section 1725-A of the act, amended or added June
19, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35) and
June 29, 2002 (P.L.524, No.88), is amended to read:

Section 1725-A. Funding for Charter [Schools] School 
Entities.--(a) [Funding for a charter school shall be provided
in the following manner:

(1) There shall be no tuition charge for a resident or
nonresident student attending a charter school.

(2) For non-special education students, the charter school
shall receive for each student enrolled no less than the
budgeted total expenditure per average daily membership of the
prior school year, as defined in section 2501(20), minus the

budgeted expenditures of the district of residence for nonpublic
school programs; adult education programs; community/junior
college programs; student transportation services; for special
education programs; facilities acquisition, construction and
improvement services; and other financing uses, including debt
service and fund transfers as provided in the Manual of
Accounting and Related Financial Procedures for Pennsylvania
School Systems established by the department. This amount shall
be paid by the district of residence of each student.

(3) For special education students, the charter school shall
receive for each student enrolled the same funding as for each
non-special education student as provided in clause (2), plus an
additional amount determined by dividing the district of
residence's total special education expenditure by the product
of multiplying the combined percentage of section 2509.5(k)
times the district of residence's total average daily membership
for the prior school year. This amount shall be paid by the
district of residence of each student.

(4) A charter school may request the intermediate unit in
which the charter school is located to provide services to
assist the charter school to address the specific needs of
exceptional students. The intermediate unit shall assist the
charter school and bill the charter school for the services. The
intermediate unit may not charge the charter school more for any
service than it charges the constituent districts of the
intermediate unit.

(5) Payments shall be made to the charter school in twelve
(12) equal monthly payments, by the fifth day of each month,
within the operating school year. A student enrolled in a
charter school shall be included in the average daily membership

of the student's district of residence for the purpose of
providing basic education funding payments and special education
funding pursuant to Article XXV. If a school district fails to
make a payment to a charter school as prescribed in this clause,
the secretary shall deduct the estimated amount, as documented
by the charter school, from any and all State payments made to
the district after receipt of documentation from the charter
school.

(6) Within thirty (30) days after the secretary makes the
deduction described in clause (5), a school district may notify
the secretary that the deduction made from State payments to the
district under this subsection is inaccurate. The secretary
shall provide the school district with an opportunity to be
heard concerning whether the charter school documented that its
students were enrolled in the charter school, the period of time
during which each student was enrolled, the school district of
residence of each student and whether the amounts deducted from
the school district were accurate.

(b) The Commonwealth shall provide temporary financial
assistance to a school district due to the enrollment of
students in a charter school who attended a nonpublic school in
the prior school year in order to offset the additional costs
directly related to the enrollment of those students in a public
charter school. The Commonwealth shall pay the school district
of residence of a student enrolled in a nonpublic school in the
prior school year who is attending a charter school an amount
equal to the school district of residence's basic education
subsidy for the current school year divided by the district's
average daily membership for the prior school year. This payment
shall occur only for the first year of the attendance of the

student in a charter school, starting with school year 1997-
1998. Total payments of temporary financial assistance to school
districts on behalf of a student enrolling in a charter school
who attended a nonpublic school in the prior school year shall
be limited to funds appropriated for this program in a fiscal
year. If the total of the amount needed for all students
enrolled in a nonpublic school in the prior school year who
enroll in a charter school exceeds the appropriation for the
temporary financial assistance program, the amount paid to a
school district for each qualifying student shall be pro rata
reduced. Receipt of funds under this subsection shall not
preclude a school district from applying for a grant under
subsection (c).

(c) The Commonwealth shall create a grant program to provide
temporary transitional funding to a school district due to the
budgetary impact relating to any student's first-year attendance
at a charter school. The department shall develop criteria which
shall include, but not be limited to, the overall fiscal impact
on the budget of the school district resulting from students of
a school district attending a charter school. The criteria shall
be published in the Pennsylvania Bulletin. This subsection shall
not apply to a public school converted to a charter school under
section 1717-A(b). Grants shall be limited to funds appropriated
for this purpose.

(d) It shall be lawful for any charter school to receive,
hold, manage and use, absolutely or in trust, any devise,
bequest, grant, endowment, gift or donation of any property,
real or personal and/or mixed, which shall be made to the
charter school for any of the purposes of this article.

(e) It shall be unlawful for any trustee of a charter school

or any board of trustees of a charter school or any other person
affiliated in any way with a charter school to demand or
request, directly or indirectly, any gift, donation or
contribution of any kind from any parent, teacher, employe or
any other person affiliated with the charter school as a
condition for employment or enrollment and/or continued
attendance of any pupil. Any donation, gift or contribution
received by a charter school shall be given freely and
voluntarily.] Funding for a charter school entity shall be 
provided in the following manner and shall not be in violation 
of any applicable Federal or State law, regulation or agreement:

(1) There shall be no tuition charge for a resident or
nonresident student attending a charter school entity.

(2) For non-special education students, the charter school
entity shall receive for each student enrolled the following,
which shall be paid by the district of residence of each
student:

(i) Through and including the 2012-2013 school year, no less
than the budgeted total expenditure per average daily membership
of the prior school year, as defined in section 2501(20), minus
the budgeted expenditures of the district of residence for
nonpublic school programs; adult education programs;
community/junior college programs; student transportation
services; for special education programs; facilities
acquisition, construction and improvement services; and other
financing uses, including debt service and fund transfers as
provided in the Manual of Accounting and Related Financial
Procedures for Pennsylvania School Systems established by the
department.

(ii) Beginning in the 2013-2014 school year, the following:

(A) For each student enrolled in a brick and mortar charter
school, no less than the budgeted total expenditure per average
daily membership of the prior school year, as defined in section
2501(20), minus the budgeted expenditures of the district of
residence for nonpublic school programs; adult education
programs; community/junior college programs; student
transportation services; special education programs; facilities
acquisition, construction and improvement services; and other
financing uses, including debt service and fund transfers as
provided in the Manual of Accounting and Related Financial
Procedures for Pennsylvania School Systems established by the
department.

(B) For each student enrolled in a cyber charter school, no
less than the budgeted total expenditure per average daily
membership of the prior school year, as defined in section
2501(20), minus the following: the budgeted expenditures of the
district of residence for nonpublic school programs; adult
education programs; community/junior college programs; student
transportation services; special education programs; facilities
acquisition, construction and improvement services; and debt
service and fund transfers as provided in the Manual of
Accounting and Related Financial Procedures for Pennsylvania
School Systems established by the department; a cyber program
deduction; a district pupil services deduction; and an
extracurricular activities deduction.

(iii) The amount under subclause (ii) shall be calculated by
each school district on a form prescribed by the secretary in
accordance with this section. The secretary, upon receipt of a
district's calculation, shall review the district's calculation
and may request supporting documentation from the district

regarding its calculation. If the secretary finds an error or
discrepancy in a district's calculation, the secretary shall
require the district to correct the calculation and require the
school district to notify affected charter school entities.

(iv) The following apply:

(A) The amount under subclause (ii) shall be paid by the
school district of residence of each student by deduction and
transfer from all State payments due to the district as provided
under clause (5).

(B) If a charter school entity disputes the accuracy of a
district's calculation under this clause, the charter school
entity shall file a notice of the dispute with the secretary,
who shall hold a hearing to determine the accuracy of the
district's calculation within thirty (30) days of the notice.

(C) The secretary shall determine the accuracy of the
district's calculation within thirty (30) days of the hearing.

(D) The district shall bear the burden of production and
proof with respect to its calculation under this clause.

(E) The district shall be liable for the reasonable legal
fees incurred by a charter school entity if the charter school
entity is the substantially prevailing party after a hearing
under this section. The charter school entity shall be liable
for the reasonable legal fees incurred by the district if the
district is the substantially prevailing party after a hearing
under this section.

(F) All decisions of the secretary under this clause shall
be subject to appellate review by Commonwealth Court.

(3) The following apply:

(i) For special education students, the charter school
entity shall receive for each student enrolled the same funding

as for each non-special education student as provided under
clause (2), plus an additional amount determined by dividing the
total special education expenditure of the school district of
residence by the product of:

(A) the combined percentage of section 2509.5(k) applicable
to the school year; and

(B) the total average daily membership of the school
district of residence for the prior school year.

(ii) The amount under subclause (i) shall be paid by the
school district of residence of each student by deduction and
transfer from all State payments due to the district as provided
under clause (5).

(iii) If a charter school entity disputes the accuracy of a
district's calculation under this clause, the charter school
entity shall file a notice of the dispute with the secretary,
who shall hold a hearing to determine the accuracy of the
district's calculation within thirty (30) days of the notice.

(iv) The secretary shall determine the accuracy of the
district's calculation within thirty (30) days of the hearing.

(v) The district shall bear the burden of production and
proof with respect to its calculation under this clause.

(vi) The district shall be liable for the reasonable legal
fees incurred by a charter school entity if the charter school
entity is the substantially prevailing party after a hearing
under this section. The charter school entity shall be liable
for the reasonable legal fees incurred by the school district if
the district is the substantially prevailing party after a
hearing under this section.

(vii) All decisions of the secretary under this section
shall be subject to appellate review by Commonwealth Court.

(4) A charter school entity may request the intermediate
unit or school district in which the charter school entity is
located to provide services to assist the charter school entity
to address the specific needs of non-special education and
special education students. The intermediate unit or school
district shall assist the charter school entity and bill the
charter school entity for the services. The intermediate unit
may not charge the charter school entity more for any service
than it charges the constituent districts of the intermediate
unit. Nothing under this clause shall preclude an intermediate
unit or school district from contracting with a charter school
entity to provide the intermediate unit or school district with
services to assist the intermediate unit or school district to
address specific needs of non-special education and special
education students.

(5) The following apply:

(i) Payments shall be made to the charter school entity in
twelve (12) equal monthly payments, according to the established
monthly unipay schedule within the operating school year or any
subsequent school year.

(ii) Except as provided for in subclause (v), payments shall
be made directly by the secretary deducting and paying to the
charter school entity the estimated amount, as documented by the
charter school entity, from:

(A) all State payments due to the school district of
residence; or

(B) if no payments are due to the school district of
residence, from all State payments reasonably expected to be due
in the next established monthly unipay schedule,

after receipt of documentation from the charter school entity as

to its enrollment.

(iii) The secretary's obligation to make payments under this
section is mandatory and ministerial, except that payments made
pursuant to this section shall not be given priority over
payments required pursuant to sections 633 and 785 and 53
Pa.C.S. § 8125(b) (relating to security for tax anticipation
notes and sinking fund), or an agreement pursuant to which the
Commonwealth is required to make payment to a holder of debt
issued by or on behalf of a school entity. If payments required
under sections 633 and 785 and 53 Pa.C.S. § 8125(b) preclude the
timely payment of funds to a charter school entity under section
1725-A or will cause the board of school directors of a school
district to fail to pay or provide for payment under this
subsection, nothing shall preclude the secretary from
withholding funds from any and all State payments made to the
district for the operating school year or for any subsequent
operating school year.

(iv) If there are insufficient State payments due to a
school district in the established monthly unipay schedule to
cover all charter school entity deductions and transfers, the
school district shall be responsible for paying the unpaid
balance directly to the charter school entity not more than
seven (7) days following the established monthly unipay
schedule.

(v) The board of trustees of a charter school entity may
elect on an annual basis to be paid directly from the school
district of residence. Any board of trustees of a charter school
entity that elects to be paid directly by the school district of
residence shall notify the department in accordance with the
timelines established in the department guidelines. The school

district of residence shall provide for payment to the charter
school entity as follows:

(A) Payments shall be made to the charter school entity in
twelve (12) equal monthly payments, according to the established
monthly unipay schedule, within the operating school year.

(B) Payments shall be made directly by the school district
of residence paying to the charter school entity the estimated
amount, as documented by the charter school entity, after
receipt of documentation from the charter school entity as to
its enrollment.

(C) If a school district of residence fails to make a
payment to a charter school entity as prescribed in this clause,
the secretary shall deduct the estimated amount, as documented
by the charter school entity, from any and all State payments
made to the school district of residence for the operating
school year or any subsequent school year after receipt of
documentation from the charter school entity.

(vi) A student enrolled in a charter school entity shall be
included in the average daily membership of the student's school
district of residence for the purpose of providing basic
education funding payments and special education funding under
Article XXV.

(6) The following apply:

(i) Within thirty (30) days after the payment is made to the
charter school entity as described under clause (5), a school
district may notify the secretary that the estimated amount, as
documented by the charter school entity, is inaccurate.

(ii) The secretary shall provide the school district with an
opportunity to be heard concerning whether the charter school
entity documented that students were enrolled in the charter

school entity, the period of time during which each student was
enrolled in the charter school entity, the school district of
residence of each student enrolled in the charter school entity
and whether the amounts deducted from or paid by the school
district were accurate.

(iii) The burden of proof and production at the hearing
shall be on the school district. A hearing shall not be held
before the secretary deducts and transfers to the charter school
entity the amount estimated by the charter school entity.

(iv) The district shall be liable for the reasonable legal
fees incurred by a charter school entity if the charter school
entity is the substantially prevailing party after a hearing
under this section. The charter school entity shall be liable
for the reasonable legal fees incurred by the district if the
district is the substantially prevailing party after a hearing
under this section.

(v) All decisions of the secretary under this section shall
be subject to appellate review by Commonwealth Court.

(vi) Supersedeas shall not be granted to the secretary or
any party to the proceeding on an appeal from the decision of
the secretary under this section; and, absent a court order, the
secretary shall not hold any payments in escrow.

(b) It shall be lawful for any charter school entity to
receive, hold, manage and use, absolutely or in trust, any
devise, bequest, grant, endowment, gift or donation of any
property, real or personal and mixed, which shall be made to the
charter school entity for any purpose of this article.

(c) It shall be unlawful for any trustee of a charter school
entity or any board of trustees of a charter school entity or
any other person affiliated in any way with a charter school

entity to demand or request, directly or indirectly, any gift,
donation or contribution of any kind from any parent, teacher,
employe or any other person affiliated with the charter school
entity as a condition for employment or enrollment and continued
attendance of any student. Any donation, gift or contribution
received by a charter school entity must be given freely and
voluntarily.

(d) A cyber charter school may not provide discounts to a
school district or waive payments under this section for any
student.

(e) For the 2013-2014 school year, and each year thereafter,
a claim filed by either a school district or a charter school
entity may relate to the operating school year immediately
preceding the current operating school year, however,
notwithstanding any other provision of this act, if challenged,
claims related to the operating school year immediately
preceding the current operating school year shall proceed
through the administrative hearing process in accordance with 2
Pa.C.S. (relating to administrative law and procedure) prior to
the secretary withholding or paying any estimated amount due to
either the school district or the charter school entity.

(f) The department shall develop a transition procedure to
be able to recoup in subsequent fiscal years any payments made
in error to a charter school entity as a result of direct
payment by the department to the charter school entity.

(g) As used in this section,

"Brick and mortar charter school" shall mean a charter school
as defined in section 1703-A which is not a cyber charter school
as defined in this subsection.

"Charter school entity" shall mean a brick and mortar charter

school or cyber charter school.

"Cyber charter school" shall mean a charter school as defined
in section 1703-A which uses technology in order to provide a
significant portion of its curriculum and delivers a significant
portion of its instruction to students through the Internet or
other electronic means.

"Cyber program deduction" shall mean an amount equal to fifty
per centum of the expenditure per average daily membership for a
cyber education program offered by the district of residence,
including a cyber education program offered in conjunction with
an intermediate unit.

"District pupil services deduction" shall mean an amount
equal to one hundred per centum of the expenditure per average
daily membership for student health services, food services and
library services offered by the district of residence.

"Extracurricular activities deduction" shall mean an amount
equal to fifty per centum of the expenditure per average daily
membership for extracurricular activities offered by the
district of residence.

Section 5. Section 1728-A of the act, added June 19, 1997,
(P.L.225, No.22), is amended to read:

Section 1728-A. Annual Reports and Assessments.--(a) The
local board of school directors shall annually assess whether
each charter school is meeting the goals of its charter and
shall conduct a comprehensive review prior to granting a [five
(5)] ten (10) year renewal of the charter or, in the case of a 
school district of the first class, a five (5) year renewal of 
the charter. The local board of school directors shall have
ongoing access to the records and facilities of the charter
school to ensure that the charter school is in compliance with

its charter and this act and that requirements for testing,
civil rights and student health and safety are being met.

(b) In order to facilitate the local board's review and
secretary's report, each charter school shall submit an annual
report no later than August 1 of each year to the local board of
school directors and the secretary in the form prescribed by the
secretary.

(c) Five (5) years following the effective date of this
article, the secretary shall contract with an independent
professional consultant with expertise in public and private
education. The consultant shall receive input from members of
the educational community and the public on the charter school
program. The consultant shall submit a report to the secretary,
the Governor and the General Assembly and an evaluation of the
charter school program, which shall include a recommendation on
the advisability of the continuation, modification, expansion or
termination of the program and any recommendations for changes
in the structure of the program.

Section 6. Sections 1742-A and 1745-A of the act, added June
29, 2002 (P.L.524, No.88), are amended to read:

Section 1742-A. Assessment and evaluation.

The department shall:

(1) Annually assess whether each cyber charter school is
meeting the goals of its charter and is in compliance with
the provisions of the charter and conduct a comprehensive
review prior to granting a [five-year] ten-year renewal of
the charter.

(2) Annually review each cyber charter school's
performance on the Pennsylvania System of School Assessment
test, standardized tests and other performance indicators to

ensure compliance with 22 Pa. Code Ch. 4 (relating to
academic standards and assessment) or subsequent regulations
promulgated to replace 22 Pa. Code Ch. 4.

(3) Have ongoing access to all records, instructional
materials and student and staff records of each cyber charter
school and to every cyber charter school facility to ensure
the cyber charter school is in compliance with its charter
and this subdivision.

Section 1745-A. Establishment of cyber charter school.

(a) Establishment.--A cyber charter school may be
established by an individual; one or more teachers who will
teach at the proposed cyber charter school; parents or guardians
of students who will enroll in the cyber charter school; a
nonsectarian college, university or museum located in this
Commonwealth; a nonsectarian corporation not-for-profit as
defined in 15 Pa.C.S. § 5103 (relating to definitions); a
corporation, association or partnership; or any combination of
the foregoing. Section 1327.1 shall not apply to a cyber charter
school established under this subdivision.

(b) Sectarian entities.--No cyber charter school shall be
established or funded by and no charter shall be granted to a
sectarian school, institution or other entity.

(c) Attendance.--Attendance at a cyber charter school shall
satisfy requirements for compulsory attendance.

(d) Application.--An application to establish a cyber
charter school shall be submitted to the department by October 1
of the school year preceding the school year in which the cyber
charter school proposes to commence operation.

(e) Grant or denial.--Within 120 days of receipt of an 
application, the department shall grant or deny the application. 

The department shall review the application and shall hold at 
least one public hearing under 65 Pa.C.S. Ch. 7 (relating to 
open meetings). At least 30 days prior to the hearing, the 
department shall publish in the Pennsylvania Bulletin and on the 
department's World Wide Web site notice of the hearing and the 
purpose of the application.

(f) Evaluation criteria.--

(1) A cyber charter school application submitted under
this subdivision shall be evaluated by the department based
on the following criteria:

(i) The demonstrated, sustainable support for the
cyber charter school plan by teachers, parents or
guardians and students.

(ii) The capability of the cyber charter school
applicant, in terms of support and planning, to provide
comprehensive learning experiences to students under the
charter.

(iii) The extent to which the programs outlined in
the application will enable students to meet the academic
standards under 22 Pa. Code Ch. 4 (relating to academic
standards and assessment) or subsequent regulations
promulgated to replace 22 Pa. Code Ch. 4.

(iv) The extent to which the application meets the
requirements of section 1747-A.

(v) The extent to which the cyber charter school may
serve as a model for other public schools.

(2) Written notice of the action of the department shall
be sent by certified mail to the applicant and published on
the department's World Wide Web site. If the application is
denied, the reasons for denial, including a description of

deficiencies in the application, shall be clearly stated in
the notice.

(3) Upon approval of a cyber charter school application,
a written charter shall be developed which shall contain the
provisions of the charter application and be signed by the
secretary and each member of the board of trustees of the
cyber charter school. The charter, when duly signed, shall
act as legal authorization of the establishment of a cyber
charter school. The charter shall be legally binding on the
department, the cyber charter school and its board of
trustees. The charter shall be for a period of [no less than
three years nor more than] five years and may be renewed for
a period of [five] ten years by the department.

(4) The decision of the department to deny an
application may be appealed to the appeal board.

(g) Denied application.--A cyber charter school applicant
may revise and resubmit a denied application to the department.
The department shall grant or deny the revised application
within 60 days after its receipt.

(h) Appeal.--If the department fails to hold the required
public hearing or to approve or disapprove the charter, the
applicant may file its application as an appeal to the appeal
board. The appeal board shall review the application and make a
decision to approve or disapprove the charter based on the
criteria in subsection (f).

Section 7. This act shall take effect in 60 days.