THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY TRUITT, KILLION, AUMENT, BARRAR, CREIGHTON, GROVE, HENNESSEY, KNOWLES, LAWRENCE, PAYTON, RAPP, SACCONE, SCHRODER, SWANGER, VULAKOVICH AND WATSON, DECEMBER 14, 2011

REFERRED TO COMMITTEE ON EDUCATION, DECEMBER 14, 2011  

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," in charter schools, further providing

for funding for charter schools.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1725-A(a) of the act of March 10, 1949

(P.L.30, No.14), known as the Public School Code of 1949,

amended June 29, 2002 (P.L.524, No.88), is amended to read:

Section 1725-A.  Funding for Charter Schools.--(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)  (i)  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]

secretary.

(ii)  The amount under subclause (i) shall be paid by the

secretary by deduction and transfer from all State payments to

the district of residence of each student as provided under

clause (5).

(iii)  If a charter or cyber charter school disputes the

accuracy of a district's calculation under this clause, the

charter school or cyber charter school 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. The secretary shall determine

the accuracy of the district's calculation within thirty (30)

days of the hearing. The district shall bear the burden of

production and proof with respect to its calculation under this

clause.

(iv)  The district shall be liable for the reasonable legal

fees incurred by a charter school or cyber charter school if the

charter school or cyber charter school is the substantially

prevailing party after a hearing under this clause. The charter

school or cyber charter school 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

clause.

(v)  All decisions of the secretary under this clause shall

be subject to appellate review by the Commonwealth Court.

(3)  (i)  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] secretary.

(ii)  If a charter school, regional charter school or cyber

charter school disputes the accuracy of a district's calculation

under this clause, the charter school, regional charter school

or cyber charter school 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. The secretary shall determine the accuracy of the

district's calculation within thirty (30) days of the hearing.

The district shall bear the burden of production and proof with

respect to its calculation under this clause.

(iii)  The district shall be liable for the reasonable legal

fees incurred by a charter school, regional charter school or

cyber charter school if the charter school, regional charter

school or cyber charter school is the substantially prevailing

party after a hearing under this clause. The charter school,

regional charter school or cyber charter school 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 clause.

(iv)  All decisions of the secretary under this clause shall

be subject to appellate review by the Commonwealth Court.

(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)  (i)  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.] and shall be made by the

secretary by deducting and paying to the charter school or cyber

charter school the estimated amount, as documented by the

charter or cyber charter school, from all State payments made to

the district or, if no payments have been made to the district,

from all State payments reasonably expected to be made, after

receipt of documentation from the school as to its enrollment.

(ii)  If there are insufficient State payments being made to

a district to cover all charter and cyber charter school

deductions and transfers, the district shall pay the unpaid

balance directly to the charter or cyber charter school by the

15th day of each month.

(iii)  A student enrolled in a charter or cyber 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

under Article XXV.

(6)  (i)  Within thirty (30) days after the secretary [makes

the deduction] transfers the funds 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.

(ii)  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 or cyber

charter school the amount estimated by the charter or cyber

charter school.

(iii)  The district shall be liable for the reasonable legal

fees incurred by a charter or cyber charter school if the

charter or cyber charter school is the substantially prevailing

party after a hearing under this clause. The charter or cyber

charter school 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 clause.

(iv)  All decisions of the secretary under this clause shall

be subject to appellate review by the Commonwealth Court.

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 clause.

(v)  Absent a court order, the secretary shall not hold any

payments in escrow.

(7)  The secretary shall make no advance payments to a

district which may limit the ability of the secretary to make

scheduled payments to charter schools.

* * *

Section 2.  The Secretary of Education's duty to make

payments under this act includes all amounts accrued but not

paid as of the effective date of this section.

Section 3.  This act shall take effect in 60 days.