An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in preliminary provisions, providing for Cyber Charter School Funding and Policy Council and further providing for advertising and sponsorships; in pupils and attendance, further providing for exceptional children and education and training; in charter schools, further providing for definitions, for funding for cyber charter schools, for powers and duties of department and for assessment and evaluation, providing for fund balance limits, further providing for cyber charter school requirements and prohibitions, providing for cyber charter school fund balance accountability, further providing for establishment of cyber charter school, for cyber charter school application, for enrollment and notification, for enrollee wellness checks and for applicability of other provisions of this act and of other acts and regulations and providing for cyber charter school moratorium; and, in reimbursements by Commonwealth and between school districts, further providing for extraordinary special education program expenses.

PRIOR PRINTER'S NOS. 1795, 1807 PRINTER'S NO. 1829
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1500
Session of
2025
INTRODUCED BY ISAACSON, SCHWEYER, CURRY, FRIEL, O'MARA, OTTEN,
PROBST, PROKOPIAK, SMITH-WADE-EL, BOROWSKI, BRENNAN,
T. DAVIS, DELLOSO, DONAHUE, FLEMING, GUENST, HADDOCK,
HANBIDGE, HILL-EVANS, HOHENSTEIN, INGLIS, KRUEGER, McNEILL,
PIELLI, RIVERA, SANCHEZ, SCHLOSSBERG, SHUSTERMAN, STEELE,
VENKAT, KHAN AND MADSEN, MAY 30, 2025
AS REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 4, 2025
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 preliminary provisions, providing
for Cyber Charter School Funding and Policy Council and
further providing for advertising and sponsorships; in pupils
and attendance, further providing for exceptional children
and education and training; in charter schools, further
providing for definitions, for funding for cyber charter
schools, for powers and duties of department and for
assessment and evaluation, providing for fund balance limits,
further providing for cyber charter school requirements and
prohibitions, providing for cyber charter school fund balance
accountability, further providing for establishment of cyber
charter school, for cyber charter school application, for
enrollment and notification, for enrollee wellness checks and
for applicability of other provisions of this act and of
other acts and regulations and providing for cyber charter
school moratorium; and, in reimbursements by Commonwealth and
between school districts, further providing for extraordinary
special education program expenses.
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
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as the Public School Code of 1949, is amended by adding a
section to read:
Section 123.2. Cyber Charter School Funding and Policy
Council.--(a) There is established a Cyber Charter School
Funding and Policy Council.
(b) The council shall have the following powers and duties:
(1) Develop recommendations related to how cyber charter
schools are funded, including process, amounts and restrictions.
(2) Develop recommendations for policies impacting cyber
charter schools, including:
(i) Establishment.
(ii) Application.
(iii) Terms and form of written charters.
(iv) Governance and management.
(v) Assessment and evaluation.
(vi) Enrollment and notification.
(vii) Student attendance and wellness, including the
delivery of services to a student with disabilities.
(viii) Renewal, revocation or denial of a charter.
(ix) Administering standardized testing.
(x) Offices and facilities.
(xi) Telework for employees.
(xii) Public transparency.
(xiii) Other policies related to cyber charter schools in
this Commonwealth.
(3) Recommend standards for truancy and attendance policies
for cyber charter schools.
(4) Hold public hearings and receive input from experts and
interested parties.
(5) No later than April 1, 2026, transmit the
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recommendations to the Governor, the Secretary of Education and
the General Assembly.
(c) The goals of the council in developing its
recommendations shall be:
(1) Providing budget predictability for school districts,
cyber charter schools and the Commonwealth.
(2) Using a transparent, data-driven approach.
(3) Improving collaboration between public schools.
(4) Providing accountability for meeting measurable academic
standards.
(d) The council shall consist of the following members:
(1) One (1) legislator from each of the four (4) legislative
caucuses, to be appointed by the President pro tempore of the
Senate and the Speaker of the House of Representatives, in
consultation with the Majority Leader and Minority Leader of the
Senate and the Majority Leader and Minority Leader of the House
of Representatives.
(2) The Secretary of Education or a designee.
(3) The Deputy Secretary of Elementary and Secondary
Education or a designee.
(e) A majority vote of the members of the council shall be
required for all actions taken by the council.
(f) The council shall appoint a member to serve as
chairperson.
(g) The council shall hold meetings at the call of the
chair. The council shall hold its first meeting within forty-
five (45) days of the effective date of this section.
(h) The members may not receive compensation for their
services but shall be reimbursed for all necessary travel and
other reasonable expenses incurred in connection with the
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performance of their duties as members of the council.
(i) The General Assembly shall provide administrative
support, meeting space and any other assistance required by the
council to carry out its duties under this section in
cooperation with the department. The department shall provide
the council with data, research and other information upon
request by the council.
(j) The cyber charter school funding and policy
recommendations developed by the council shall not go into
effect unless approved by an act of the General Assembly enacted
after the effective date of this subsection.
(k) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Council." The Cyber Charter School Funding and Policy
Council established under this section.
"Department." The Department of Education of the
Commonwealth.
Section 2. Section 134(b) of the act, added July 11, 2024
(P.L.618, No.55), is amended to read:
Section 134. Advertising and Sponsorships.--* * *
(b) [No later than August 1, 2025, each] As part of the
annual financial reporting submitted under section 218, each
public school entity shall report to the Department of Education
the entity's total expenditures for paid media advertisements
and sponsorships of public events [for the 2024-2025 school
year]. The department shall compile the results of the reports
and make the results available on the Department of Education's
publicly accessible Internet website [by December 1, 2025].
* * *
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Section 3. Section 1372(8) of the act is amended by adding a
subclause to read:
Section 1372. Exceptional Children; Education and
Training.--* * *
(8) Reporting of Expenditures Relating to Exceptional
Students.
* * *
(vi) For purposes of reporting expenditures under this
section and for calculating the costs for educating a special
education student, costs shall be in accordance with Department
of Education guidance and shall include the following:
(A) Eligible instruction costs per special education student
when specified in the student's individualized education plan
shall include:
(I) Prorated salary and benefits for a classroom special
education teacher.
(II) Prorated salary and benefits for a classroom aide, if
the aide is assigned to a group of students.
(III) Total cost of salary and benefits if a
paraprofessional or one-on-one aide is assigned to the student.
(B) Eligible related services costs per special education
student when specified in the student's individualized education
plan shall include:
(I) Prorated transportation cost if the vehicle is
transporting multiple students at one time.
(II) Total transportation cost if the vehicle is
transporting only the student receiving services.
(III) Prorated cost of speech and language services if
services are provided to a group of students.
(IV) Total cost of speech and language services if services
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are provided to the student receiving services.
(V) Total cost of individual services, including
occupational therapy, physical therapy, vision services, hearing
services, orientation and mobility and related services.
(VI) Prorated cost of school nursing services if services
are provided to a group of students.
(VII) Total cost of a one-on-one nurse if the nurse is
assigned to a student receiving services.
(C) Eligible specialized equipment costs per special
education student when specified in the student's individualized
education plan shall include:
(I) Total cost of braille materials for the student
receiving services.
(II) Total cost of assistive technology for the student
receiving services.
(III) Total cost of other equipment for the student
receiving services.
(D) Ineligible costs that may not be used in the calculation
include:
(I) Administrative costs.
(II) Nonspecialized transportation costs.
(III) General education costs, which are not applicable to
special education services.
Section 4. Section 1703-A of the act is amended by adding
definitions to read:
Section 1703-A. Definitions.--The following words and
phrases when used in this article shall have the meanings given
to them in this section unless the context clearly indicates
otherwise:
* * *
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"Comprehensive support and improvement" shall mean a
designation under 20 U.S.C. § 6311 (relating to State plans) for
schools that face the most significant challenges related to
academic achievement, student growth, graduation rate and other
areas.
* * *
"Low-achieving school" shall mean a public school that ranked
in the lowest fifteen per centum of the school's designation as
an elementary school or a secondary school based on combined
mathematics and reading scores from the annual assessment
administered in the previous school year.
* * *
"Statewide cyber charter school tuition rate" shall mean the
base amount as calculated under section 1725.1-A(e) and (f).
Section 5. Section 1725.1-A(c) introductory paragraph of the
act, added July 11, 2024 (P.L.618, No.55), is amended and the
section is amended by adding subsections to read:
Section 1725.1-A. Funding for Cyber Charter Schools.--* * *
(c) Effective January 1, 2025, [and the entirety of each
school year thereafter] through the 2024-2025 school year, for
special education students, a cyber charter school shall receive
for each student enrolled the lesser of:
* * *
(e) Notwithstanding section 1725-A(a)(2), for non-special
education students for the 2025-2026 school year, the cyber
charter school shall receive the Statewide cyber charter school
tuition rate of eight thousand dollars ($8,000).
(f) Notwithstanding section 1725-A(a)(2), for non-special
education students beginning in the 2026-2027 school year and
every school year thereafter, the cyber charter school shall
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receive the Statewide cyber charter school tuition rate under
subsection (e) adjusted in accordance with the following:
(1) The lesser of:
(i) the average annual percentage change in real estate tax
collection for all school districts for the most recent year as
reported on the annual financial report submitted in accordance
with section 218 and fixed as of the first day of June preceding
the school year for which the calculation applies; or
(ii) the average of the most recent percentage increase in
the Statewide average weekly wage and the employment cost index
as defined in s ection 30 2 of the act of June 27, 2006 (1st
Sp.Sess., P.L.1873, No.1), known as the "Taxpayer Relief Act."
(2) If the average change under clause (1) is less than zero
(0), there shall be no change in the Statewide cyber charter
school tuition rate.
(g) Beginning in the 2025-2026 school year and each school
year thereafter , for special education students, a cyber charter
school shall receive for each student with a current
individualized education plan enrolled in the cyber charter
school the same funding as each non-special education student as
provided under subsections (e) and (f), plus an additional
amount in accordance with the following :
(1) For each special education student enrolled in the cyber
charter school for which the annual expenditures for providing
special education specific services and programs as reported by
the cyber charter school under section 1372(8) fall within the
amounts for Category 1, 2 or 3 as specified in section 1372(8),
multiply the Statewide cyber charter school tuition rate AS
PROVIDED UNDER SUBSECTIONS (E) AND (F) by the corresponding
multiplier specified in section 2509.5(bbb)(2) (i.1)(A), (B) or
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(C) or the most recently enacted statute specifying the
multiplier for Category 1, 2 or 3 students. For purposes of this
clause, Category 1 shall include students in Categories 1A and
1B and Category 3 shall include students in Categories 3A and 3B
under section 1372(8).
(2) For each special education student enrolled in the cyber
charter school, the cyber charter school shall, for purposes of
calculating the charter school tuition rate under clause (1),
use the multiplier corresponding with the section 1372(8)
category under which the student was reported for the prior
school year. For each newly identified special education student
enrolled in the cyber charter school, the cyber charter school
shall, for purposes of calculating the charter school tuition
rate under clause (1), use the multiplier corresponding with
Category 1.
(3) At the end of each school year, a cyber charter school
shall analyze the cyber charter school's actual expenditures for
the provision of special education services and programs to each
student in the prior school year. If the analysis shows that a
student should have been placed in a different tuition rate
category than was used to invoice the resident school district
under clause (2), the cyber charter school shall place the
student in the appropriate tuition rate category as part of the
final documentation of payment to be made under section 1725-
a(a)(5).
(4) The department shall periodically review and monitor a
cyber charter school's tuition rate category determinations to
ensure compliance with this section and section 1372(8)(vi).
(5) Failure to comply with this subsection shall be grounds
for nonrenewal or revocation of a charter under section 1729-A.
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(h) If a cyber charter school incurs extraordinary expenses
in providing a special education program or service to one or
more students with disabilities, the cyber charter school may
apply to the Secretary of Education for money in accordance with
section 2509.8.
Section 6. Section 1741-A(a)(1), (2) and (5) of the act are
amended and the subsection is amended by adding paragraphs to
read:
Section 1741-A. Powers and duties of department.
(a) Powers and duties.--The department shall:
(1) Receive, review and act on applications for the
creation of a cyber charter school and have the power to
request further information from applicants, obtain input
from interested persons or entities and hold hearings
regarding applications. The department shall create and post
on its publicly accessible Internet website a standard
application form for the creation of a new cyber charter
school.
(2) Renew the charter of cyber charter school and renew
the charter of a charter school approved under section 1717-A
or 1718-A which provides instruction through the Internet or
other electronic means. Upon renewal of a charter of a
charter school approved under section 1717-A or 1718-A, the
charter school shall qualify as a cyber charter school under
this subdivision and shall be subject to the provisions of
this subdivision. The department shall create and post on its
publicly accessible Internet website a standard application
form for existing cyber charter schools seeking renewal of
the cyber charter school's charter.
* * *
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(5) Develop forms, including the standard application
forms under paragraphs (1) and (2) and notification form
under paragraph (6)(ii) and section 1748-A(b), necessary to
carry out the provisions of this subdivision.
(6) (i) By February 1 of each year, notify each cyber
charter school identified as a low-achieving school of
the following duties:
(A) Within 15 days of receipt of a notification
under this subparagraph, a cyber charter school shall
notify the parents of each enrolled student of the
cyber charter school's designation.
(B) Upon registration of a kindergarten student
and enrollment of a new student in any grade, a cyber
charter school shall notify the parents or guardians
of the student that the student will be assigned to a
low-achieving school during the school year of the
cyber charter school's designation.
(ii) Failure to provide the notice required under
subparagraph (i)(A) or (B) shall be grounds for
nonrenewal or revocation of a charter under section 1729-
A.
(iii) The notice under subparagraph (i) shall be in
a form provided by the department.
(7) Annually post the annual budget of the cyber charter
school provided under section 1716-A(i).
* * *
Section 7. Section 1742-A of the act is amended to read:
Section 1742-A. Assessment and evaluation.
(a) Duties of department.--The department shall:
(1) Annually assess whether each cyber charter school is
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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] 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.
(4) Annually publish the results of the assessment under
paragraph (1) and the evaluation performance standards under
paragraph (2) for each cyber charter school on the
department's publicly available Internet website.
(5) Upon completion for each cyber charter school,
publish the comprehensive review under paragraph (1).
(b) Penalty.--Failure to provide information requested by
the department under this section shall be grounds for
nonrenewal or revocation of a charter under section 1729-A.
Section 8. The act is amended by adding a section to read:
Section 1742.1-A. Fund balance limits.
(a) Limitation.--For the 2025-2026 school year and each
school year thereafter, a cyber charter school may not
accumulate an unassigned fund balance that exceeds 12% of the
cyber charter school's total expenditures.
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(b) Refund.--Any unassigned fund balance in place on June
30, 2026, and on June 30 of each year thereafter, in excess of
the fund balance limit under subsection (a) shall be refunded on
a pro rata basis within 90 days to all school districts that
paid tuition to the cyber charter school in the prior school
year, based upon the cyber charter school's average daily
membership for each school district that paid tuition to the
cyber charter school. Failure to comply with this subsection
shall be grounds for nonrenewal or revocation of a charter under
section 1729-A.
(c) Information.--By October 31, 2026, and by October 31 of
each year thereafter, each cyber charter school shall provide
the department and all school districts that paid tuition to the
cyber charter school in the prior school year with information
certifying compliance with this section. The information shall
be provided in a form and manner prescribed by the department
and shall include information on the cyber charter school's
ending unassigned fund balance expressed as a dollar amount and
as a percentage of the cyber charter school's total budgeted
expenditures for that school year.
(d) Prohibition.--Unassigned money of the cyber charter
school in excess of the unassigned fund balance limit may not be
used to pay bonuses or provide employment incentives to an
administrator, board of trustees member, employee, staff member
or contractor and may not be transferred to a charter school
foundation. If a cyber charter school uses money in excess of
the unassigned fund balance limit to pay bonuses or provide
employment incentives to an administrator, board of trustees
member, employee, staff member or contractor or transfers the
money to a charter school foundation, the value of the bonus
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payment, employment incentive or money transfer shall be
refunded on a pro rata basis to all school districts that paid
tuition to the cyber charter school in the prior school year,
based upon the number of students for whom each school district
paid tuition to the cyber charter school multiplied by the
Statewide cyber charter school tuition rate under section
1725.1-A.
(e) Definition.--As used in this section, the term
"unassigned fund balance" shall mean the portion of the fund
balance of a cyber charter school that is appropriable for
expenditure or not legally or otherwise obligated for a specific
or tentative future use as reported on the annual financial
report at the end of the school year.
Section 9. Section 1743-A(a)(2) and (3), (e)(1), (f) and (h)
of the act are amended, subsections (a), (c) and (d) are amended
by adding paragraphs and the section is amended by adding
subsections to read:
Section 1743-A. Cyber charter school requirements and
prohibitions.
(a) Special financial requirements prohibited.--A cyber
charter school shall not:
* * *
(2) except as provided for in subsection (e), provide
payments to parents or guardians for the purchase of
instructional materials; [or]
(3) except as compensation for the provision of specific
services, enter into agreements to provide funds to a school
entity[.]; or
(4) provide payments, gifts, reimbursement or other
incentives to a parent or guardian of any student or
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prospective student for enrolling, considering enrolling or
providing information to any parent or guardian enrolling or
considering enrolling a student in the charter school.
* * *
(b.1) Enrollment parameters.--If a cyber charter school is
designated for comprehensive support and improvement, the cyber
charter school shall be subject to an enrollment parameter and
may not expand its enrollment beyond a 5% increase of its
highest reported enrollment of the previous three years from the
date of identification. Upon designation, the department shall
calculate the cyber charter school's enrollment parameter and
shall communicate the enrollment parameter to the cyber charter
school. The enrollment parameter may not be surpassed during any
period the cyber charter school retains the designation of
comprehensive support and improvement. Failure to comply with
this subsection shall be grounds for nonrenewal or revocation of
a charter under section 1729-A.
(c) School district.--A cyber charter school shall make
available upon request, either in writing or electronically, to
each student's school district of residence the following:
* * *
(5) Proof of residency for each student that the school
district is required to make payments for under sections
1725-A and 1725.1-A. The following shall apply:
(i) Proof of residency shall be a document with the
parent or guardian's name and address on it, including an
active residential lease agreement, a mortgage statement
no more than three months old, a bank statement no more
than three months old, a utility or Internet bill no more
than three months old, a tax bill no more than three
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months old or an insurance document no more than three
months old.
(ii) A school district shall not request proof of
residency from a cyber charter school for a student
enrolled at a cyber charter school more than once per
month.
(d) Parent or guardian.--Upon request and prior to the
student's first day in a cyber charter school, the cyber charter
school shall, either in writing or electronically, provide to
the parent or guardian of a student the following:
* * *
(14) A notice of the requirement under subsection (c)(5)
to provide proof of residency upon request, not to exceed
monthly.
(d.1) Statements required.--Prior to the student's first day
at a cyber charter school, the cyber charter school shall obtain
a written statement from the child's parent or guardian
acknowledging receipt and acceptance of the cyber charter
school's information and policies under subsection (d).
(e) Students.--For each student enrolled, a cyber charter
school shall:
(1) provide all instructional materials, which may
include electronic or digital books in place of textbooks;
* * *
(f) Annual report.--A cyber charter school shall submit an
annual report no later than August 1 of each year to the
department in the form prescribed by the department[.] to be
posted on the department's publicly accessible Internet website.
Beginning with the annual report for the 2025-2026 school year,
the department shall require the written report to include:
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(1) A list of all entities providing financing for
capital projects of the cyber charter school.
(2) All expenditures to an educational management
service provider.
(3) The annual budget of the cyber charter school under
section 1716-A(i).
(4) Data in a form prescribed by the department to
validate student wellness checks required under section
1748.1-A.
* * *
(h) Offices and facilities.--
(1) A cyber charter school shall [maintain]:
(i) Maintain an administrative office within this
Commonwealth where all student records shall be
maintained at all times and which shall [provide] be
considered as the principal place of business for service
of process for any action brought against the cyber
charter school or cyber charter school staff members.
(ii) Provide the department with the addresses of
all offices and facilities of the cyber charter school,
the ownership thereof and copies of any lease
arrangements[. The administrative office of the cyber
charter school shall be considered as the principal place
of business for service of process for any action brought
against the cyber charter school or cyber charter school
staff members.] entered by or on behalf of the cyber
charter school and a description of the purpose and use
of each facility. The cyber charter school shall notify
the department of any changes in this information within
ten days of the change. The department shall post the
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information required under this paragraph on its publicly
accessible Internet website.
(iii) Provide the department with a list of all
entities providing financing for capital projects of the
cyber charter school.
(2) A cyber charter school shall be prohibited from
owning or having any financial interest in additional offices
and facilities beyond the administrative office under
paragraph (1) without seeking an amendment to its charter
under section 1747-A and receiving the approval from the
department.
(3) Revenue generated from the rent, lease or sale of
charter-owned property shall be paid annually by June 30 of
the next school year to resident school districts by
prorating the revenue based on each resident school
district's average daily membership in the cyber charter
school as reported to the department.
(4) A cyber charter school shall report payments made
under paragraph (3) on the cyber charter school's annual
financial report in a format determined by the department.
(5) Failure to comply with this subsection shall be
grounds for nonrenewal or revocation of a charter under
section 1729-A.
* * *
(j) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Gift." Anything that is received without consideration of
equal or greater value, provided that the value of the gift is
greater than $10.
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Section 10. The act is amended by adding a section to read:
Section 1743.1-A. Cyber charter school fund balance
accountability.
(a) Information required.--No later than October 31, 2025,
each cyber charter school shall submit to the department, in a
form and manner prescribed by the department, a statement of
revenues, expenditures and changes in fund balances for
governmental funds for the fiscal year ending June 30, 2025,
including a narrative and documentation explaining the specific
purpose and related amounts for which any governmental fund
balance is designated as nonspendable, restricted, committed or
assigned as classified in the annual financial reports submitted
in accordance with section 218.
(b) Payment.--No later than December 31, 2025, based on the
information reported under subsection (a), each cyber charter
school shall pay to the Commonwealth an amount equal to the sum
of the amounts as follows:
(1) The unassigned fund balance payment calculated as
follows:
(i) Multiply the total expenditures of the cyber
charter school by 0.5.
(ii) Subtract the product calculated under
subparagraph (i) from the end-of-year unassigned fund
balance.
(iii) Determine the greater of $0 or the difference
in subparagraph (ii).
(2) Capital project fund payment calculated as follows:
(i) Multiply the total expenditures of the cyber
charter school by 0.2.
(ii) Subtract the product calculated in subparagraph
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(i) from the end-of-year fund balance for the capital
projects fund.
(iii) Determine the greater of $0 or the difference
in subparagraph (ii).
(c) Use.--The money received under this section shall be
transferred to the Commonwealth Financing Authority for the
program established under section 1753.2-E of the act of April
9, 1929 (P.L. 343, No.176), known as The Fiscal Code. The
following shall apply:
(1) No less than 25% of the money available under this
section shall be used to fund projects recommended by the
Department of Community and Economic Development under
section 1753.2-E(b.1). The Department of Community and
Economic Development may, in its discretion, recommend
projects from applications received in a previous application
round.
(2) Notwithstanding section 1753.2-E(a) and (n) of The
Fiscal Code, a charter school and a regional charter school
shall be eligible to apply for and receive money available
under this section provided that if the charter school or
regional charter school facility where the awarded project is
located is sold, transferred or conveyed within five years
from the date of the award of the grant, the charter school
or regional charter school shall notify the Commonwealth
Financing Authority and the new owner of record shall
reimburse the Commonwealth Financing Authority in an amount
equal to 80% of the amount of the grant.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
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"Capital project fund." The money accounting for financial
resources that are restricted, committed or assigned to be
obligated or expended for capital outlays by a cyber charter
school.
"Unassigned fund balance." That portion of the fund balance
of a cyber charter school that is appropriable for expenditures
or not legally or otherwise obligated for a specific or
tentative future use as reported on the annual financial report
at the end of the school year.
Section 11. Section 1745-A(f)(3) of the act is amended to
read:
Section 1745-A. Establishment of cyber charter school.
* * *
(f) Evaluation criteria.--
* * *
(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 years by the department].
* * *
Section 12. Section 1747-A heading and introductory
paragraph of the act are amended and the section is amended by
adding subsections to read:
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Section 1747-A. Cyber charter school application, renewal and
amendment.
(a) Application.--In addition to the provisions of section
1719-A, an application to establish a cyber charter school shall
also include the following:
* * *
(b) Form.--The application to establish a cyber charter
school shall be made upon the standard application form in paper
and electronic formats as determined by the department.
(c) Renewal.--
(1) A cyber charter school shall submit a renewal
application as provided under section 1719-A with the
department by October 1 of the final year of the charter.
(2) A cyber charter school's charter may be renewed for
a period of no less than three years and no more than five
years by the department or appeal board.
(d) Charter amendments.--Amendments to charters shall be in
accordance with the following:
(1) A cyber charter school may request amendments to its
approved written charter by filing a written document
describing the requested amendment with the department.
(2) Within 60 days of the department's receipt of the
request for an amendment, the department shall provide for
public comment on the requested amendment under 65 Pa.C.S.
Ch. 7 (relating to open meetings).
(3) An applicant for an amendment shall have the right
to appeal the denial of a requested amendment to the appeal
board provided for under section 1721-A.
Section 13. Sections 1748-A and 1748.1-A of the act, amended
or added July 11, 2024 (P.L.618, No.55), are amended to read:
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Section 1748-A. Enrollment and notification.
(a) Notice to school district.--
(1) Within 10 days of the enrollment of a student to a
cyber charter school, the parent or guardian and the cyber
charter school shall notify the student's school district of
residence of the enrollment through the use of the
notification form under subsection (b).
(2) If a school district [which has received notice
under paragraph (1)] determines that a student is not a
resident of the school district, the following apply:
(i) [Within seven days of receipt of the notice
under paragraph (1), the] The school district shall
notify the cyber charter school and the department that
the student is not a resident of the school district.
Notification of nonresidence shall include the basis for
the determination.
(ii) [Within seven days of] Following the
notification under subparagraph (i), the [cyber charter
school] department shall review the notification of
nonresidence[, respond to the school district and provide
a copy of the response to the department]. If the [cyber
charter school] department agrees that a student is not a
resident of the school district, it shall determine and
notify the cyber charter school of the proper district of
residence of the student. [before requesting funds from
another school district.
(iii) Within seven days of receipt of the response
under subparagraph (ii), the school district shall notify
the cyber charter school that it agrees with the cyber
charter school's determination or does not agree with the
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cyber charter school's determination.
(iv) A school district that has notified the cyber
charter school that it does not agree with the cyber
charter school's determination under subparagraph (iii)
shall appeal to the department for a final
determination.]
(v) All decisions of the department regarding the
school district of residence of a student shall be
subject to review by the Commonwealth Court.
(vi) A school district shall continue to make
payments to a cyber charter school under section 1725-A
during the time in which the school district of residence
of a student is in dispute.
(vii) If a final determination is made that a
student is not a resident of an appealing school
district, the cyber charter school shall return all funds
provided on behalf of that student during the period for
which the student was not a resident of the school
district to the school district within 30 days.
(viii) If a final determination is made by the
department or Commonwealth Court that a student is not a
resident of an appealing school district, the secretary
shall assess an administrative fine equal to the
Statewide cyber charter school tuition rate under section
1725.1-A on the cyber charter school. Any sum collected
as a penalty under this subparagraph may be used by the
department for the payment of costs of administration of
this article.
(ix) The department shall revoke or deny renewal of
a cyber charter school's charter if, in any school year
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other than a cyber charter school's first year of
operation, the number of administrative fines assessed on
the cyber charter school exceeds 1% of the cyber charter
school's average daily membership in the previous school
year.
(b) Notification form.--The department shall develop a
notification form for use under subsection (a). The notification
shall include:
(1) The name, home address and mailing address of the
student.
(2) The grade in which the student is being enrolled.
(3) The date the student will be enrolled.
(4) The name and address of the cyber charter school and
the name and telephone number of a contact person able to
provide information regarding the cyber charter school.
(5) The signature of the parent or guardian and an
authorized representative of the cyber charter school.
(6) Proof of residency, which shall be a document with
the parent or guardian's name and address on it, including an
active residential lease agreement, a mortgage statement no
more than three months old, a bank statement no more than
three months old, a utility or Internet bill no more than
three months old, a tax bill no more than three months old or
an insurance document no more than three months old.
(c) Withdrawal.--
(1) The cyber charter school and the parent or guardian
of a student enrolled in a cyber charter school shall provide
written notification to the student's school district of
residence within 10 days following the withdrawal of a
student from the cyber charter school.
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(2) If the written notification required under paragraph
(1) is dated after a notification by the school district
under subsection (a)(2)(i), the administrative fine provided
under subsection (a)(2)(viii) applies.
Section 1748.1-A. Enrollee wellness checks.
(a) Requirements.--A cyber charter school shall, at least
once during any week consisting of at least three full or
partial days of academic instruction, ensure that each enrolled
student is [able to be] visibly seen and communicated with in
real time by a teacher, administrator or other representative of
the cyber charter school, either in person or via electronic
means, in order to ensure the well-being of the student and
verify participation in the educational program. The requirement
under this subsection may be satisfied by students turning on a
webcam during synchronous online instruction.
(a.1) Failure to comply.--Failure to comply with subsection
(a) shall be grounds for nonrenewal or revocation of a charter
under section 1729-A.
(b) Report.--If any indication of abuse, neglect or harm to
a child is observed, the cyber charter school administrator,
employee or representative shall report the concerns in
accordance with 23 Pa.C.S. Ch. 63 (relating to child protective
services).
(c) Well-being.--The department may require proof of
compliance with this section by a cyber charter school to ensure
the well-being of the enrolled student in a cyber charter school
and verify participation in the educational program.
Section 14. Section 1749-A(a)(1) of the act is amended by
adding subparagraphs and the section is amended by adding a
subsection to read:
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Section 1749-A. Applicability of other provisions of this act
and of other acts and regulations.
(a) General requirements.--Cyber charter schools shall be
subject to the following:
(1) The following:
* * *
(xiv.1) Section 751.
* * *
(xx.1) Section 807.1
* * *
(d) Penalty.--Failure to comply with this section shall be
grounds for nonrenewal or revocation of a charter under section
1729-A.
Section 15. The act is amended by adding a section to read:
Section 1752-A. Cyber charter school moratorium.
Beginning with the 2025-2026 school year through the 2029-
2030 school year, the department may not review or act on any
application for the establishment of a new cyber charter school
regardless of the date on which the application was or is
received by the department.
Section 16. Section 2509.8(f)(i) of the act is amended and
the section is amended by adding a subsection to read:
Section 2509.8. Extraordinary Special Education Program
Expenses.--* * *
(f) (i) For the 2016-2017 school year [and each school year
thereafter] through the 2024-2025 school year, an amount equal
to one percent (1%) of the special education appropriation shall
be distributed to school districts and charter schools for
extraordinary expenses incurred in providing a special education
program or service to one or more students with disabilities as
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approved by the Secretary of Education. Such special education
program or service shall include, but not be limited to, the
transportation of students with disabilities; services related
to occupational therapy, physical therapy, speech and language,
hearing impairments or visual impairments; or training in
orientation and mobility for children who are visually impaired
or blind.
* * *
(g) For the 2025-2026 school year and each school year
thereafter, an amount equal to two percent (2%) of the special
education appropriation shall be distributed to school districts
and charter schools for extraordinary expenses incurred in
providing a special education program or service to one or more
students with disabilities as approved by the Secretary of
Education. The special education program or service shall
include, but not be limited to, the transportation of students
with disabilities, services related to occupational therapy,
physical therapy, speech and language, hearing impairments or
visual impairments or training in orientation and mobility for
children who are visually impaired or blind. The following shall
apply:
(i) No less than one percent (1%) of the special education
appropriation may be distributed to school districts and charter
schools as follows:
(A) Funds distributed under this subparagraph shall be
allocated for students for which all the following criteria are
met:
(I) Expenses are incurred on an annual basis that are equal
to or greater than seventy-five thousand dollars ($75,000).
(II) The expenses associated with the application represent
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at least one percent (1%) of the school district's or charter
school's total special education expenditures as reported in the
most recent annual financial reports submitted in accordance
with section 218.
(III) The student must not have been enrolled in the school
district or charter school for more than two (2) consecutive
school years.
(B) The department shall prioritize applications with the
highest rates in clause (A)(II).
(ii) No less than one percent (1%) of the special education
appropriation may be distributed to school districts and charter
schools as follows:
(A) Money distributed under this subparagraph shall be
allocated for students for which all the following criteria are
met:
(I) Expenses are incurred on an annual basis that are equal
to or greater than seventy-five thousand dollars ($75,000).
(II) The student must not have been enrolled in the school
district or charter school for more than two (2) consecutive
school years.
(B) The department shall prioritize applications with the
highest expenses in clause (A)(I).
(iii) The following shall apply to money distributed to a
school district or a charter school under this subsection:
(A) Subtract the State subsidies paid on behalf of the
student to the school district or, for a student enrolled in a
charter school, the charter school payment received by the
charter school where the child is enrolled from the expense
incurred for the student.
(B) No school district or charter school shall in any school
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year receive an aggregate amount under this subsection which
exceeds the total amount of funding available multiplied by the
percentage equal to the greatest percentage of the State's
special education students enrolled in a school district or
charter school.
(h) (1) Except as provided under paragraph (2), a school
district or charter school may not in any school year receive
more than one hundred fifty thousand dollars ($150,000).
(2) A school district of the first class may not in any
school year receive more than three hundred thousand dollars
($300,000).
Section 17. This act shall take effect immediately.
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