Read the full stored bill text
PRINTER'S NO. 2809
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2167
Session of
2026
INTRODUCED BY N. NELSON, SANCHEZ, M. MACKENZIE, RIVERA, HILL-
EVANS, DALEY, SCHWEYER, CEPEDA-FREYTIZ AND WAXMAN,
JANUARY 28, 2026
REFERRED TO COMMITTEE ON EDUCATION, JANUARY 28, 2026
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," making editorial changes to delete
references to "approved private school" for the purpose of
adding references to "approved special education school."
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 1376(a), (a.1), (a.2), (b), (c.2),
(c.3), (c.4), (c.5), (c.6), (c.7), (c.9) and (e), 1377(c) and
(d), 1377.1, 1377.2 and 1383(d) of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949, are
amended to read:
Section 1376. Cost of Tuition and Maintenance of Certain
Exceptional Children in Approved Institutions.--(a) When any
child between school entry age and twenty-one (21) years of age
and resident in this Commonwealth, who is blind or deaf, or has
cerebral palsy and/or neurological impairment and/or muscular
dystrophy and/or is intellectually disabled and/or has a serious
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
emotional disability and/or has autism/pervasive developmental
disorder and is enrolled, with the approval of the Department of
Education, as a pupil in an approved [private] special education
school approved by the Department of Education, in accordance
with standards and regulations promulgated by the State Board of
Education, the school district in which such child is resident
or, for students placed by a charter school, the charter school
in which the student was enrolled shall pay the greater of
either twenty per centum (20%) of the actual audited cost of
tuition and maintenance of such child in such school, as
determined by the Department of Education, or its "tuition
charge per elementary pupil" or its "tuition charge per high
school pupil," as calculated pursuant to section 2561, and the
Commonwealth shall pay, out of funds appropriated to the
department for special education, the balance due for the costs
of such child's tuition and maintenance, as determined by the
department. For the school years 1989-1990, 1990-1991 and 1991-
1992, the school district payment shall be no greater than forty
percent (40%) of the actual audited costs of tuition and
maintenance of such child in such school. For the 1992-1993
school year through the 2003-2004 school year, the school
district or charter school payment shall be the greater of forty
percent (40%) of the actual audited costs of tuition and
maintenance of such child in such school, as determined by the
Department of Education, or its "tuition charge per elementary
pupil" or its "tuition charge per high school pupil," as
calculated pursuant to section 2561, and the Commonwealth shall
pay, out of funds appropriated to the department for approved
[private] special education schools, the balance due for the
costs of such child's tuition and maintenance, as determined by
20260HB2167PN2809 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the department. For the 2004-2005 school year and each school
year thereafter, the school district or charter school payment
shall be the greater of forty percent (40%) of the approved
tuition rate as established pursuant to subsection (c.3) or
(c.5) or the school district or charter school's "tuition
charges per elementary pupil" or "tuition charges per secondary
pupil" as calculated under section 2561, and the Commonwealth
shall pay out of funds appropriated to the department for
approved [private] special education schools the balance of the
approved tuition rate due for the cost of such child's tuition
and maintenance. The department will credit the district of
residence with average daily membership for such child
consistent with the rules of procedure developed in accordance
with section 2501. If the residence of such child in a
particular school district cannot be determined, the
Commonwealth shall pay the whole cost of tuition and maintenance
of such child as established under subsection (c.3) or (c.5).
(a.1) For the 2004-2005 school year, the following shall
apply:
(1) The Department of Education shall determine the payment
amount for each approved [private] special education school for
all students enrolled in an approved [private] special education
school for the 2003-2004 school year based on the average of:
(i) The preliminary budget submitted to the Department of
Education by the approved [private] special education school for
the 2004-2005 school year.
(ii) The midyear budget submitted to the Department of
Education by the approved [private] special education school for
the 2003-2004 school year.
(iii) The audit issued by the Governor's Office of the
20260HB2167PN2809 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Budget for the 2002-2003 school year, excluding questioned
costs.
(2) Where the 2002-2003 audit is not available, the
Department of Education shall use the claim form submitted to it
by the approved [private] special education school for the 2002-
2003 school year. In the event that an approved [private]
special education school has not submitted a claim form for the
2002-2003 school year, the Department of Education shall use the
audit or, where the audit is not available, the claim form for
the 2001-2002 school year.
(3) For the purposes of determining the payment under
paragraph (1) for an approved [private] special education school
that was not in operation for the 2002-2003 school year, the
Department of Education shall utilize the approved [private]
special education school's preliminary budget for the 2004-2005
school year instead of the audit identified under paragraph (1)
(iii).
(4) No later than August 10, 2004, the Department of
Education shall notify each school district of residence or
charter school of a child enrolled in an approved [private]
special education school of its payment amount under subsection
(a).
(5) The Department of Education shall pay each approved
[private] special education school the total amount calculated
pursuant to this subsection divided into twelve (12) monthly
payments. The Department of Education shall withhold the school
district or charter school payment amount calculated under
subsection (a) from the amount of any and all State payments
made to the school district or charter school. In no event shall
the sum of the Commonwealth's share of payments to approved
20260HB2167PN2809 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
[private] special education schools under this subsection exceed
the appropriation for approved [private] special education
schools.
(a.2) For the 2005-2006 school year and each school year
thereafter, the Department of Education shall determine the
payment amount for each approved [private] special education
school for all students enrolled in an approved [private]
special education school for the prior school year as follows:
(1) (i) Multiply the payment determined for the immediate
preceding school year by one hundred and twenty-five percent
(125%) of the percentage increase in the appropriation for
special education for the fiscal year prior to the fiscal year
in which payments under this subsection are made.
(ii) Add the product from subparagraph (i) to the payment
determined for the immediate preceding school year.
(2) No later than May 10, 2005, and no later than May 10 of
each year thereafter, the Department of Education shall notify
each school district of residence or charter school of a child
enrolled in an approved [private] special education school of
its payment amount under subsection (a).
(3) The Department of Education shall pay each approved
[private] special education school the total amount calculated
pursuant to this subsection divided into twelve (12) monthly
payments. The Department of Education shall withhold the school
district or charter school payment amount calculated under
subsection (a) from the amount of any and all State payments
made to the school district or charter school. In no event shall
the sum of the Commonwealth's share of payments to approved
[private] special education schools under this subsection exceed
the appropriation for approved [private] special education
20260HB2167PN2809 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
schools.
(b) When any person less than school entry age or more than
twenty-one (21) years of age and resident in this Commonwealth,
who is blind or deaf, or has cerebral palsy and/or has
neurological impairment and/or has muscular dystrophy, or has
autism/pervasive developmental delay, and is enrolled, with the
approval of the Department of Education, as a pupil in an
approved [private] special education school approved by the
Department of Education, the Commonwealth shall pay to such
school the approved tuition rate for such child's tuition and
maintenance, and in addition, in the case of any child less than
school entry age, who is blind, the cost, as determined by the
Department of Education of instructing the parent of such blind
child in caring for such child.
(c.2)
(4) Beginning with the 2004-2005 school year and each school
year thereafter, each approved [private] special education
school shall maintain an accounting and bookkeeping system and
be subject to audit as provided in standards promulgated by the
Department of Education. Such standards shall require that each
approved [private] special education school submit an audit to
the Department of Education by November 1 of each year. Such
audit shall be conducted in accordance with generally accepted
accounting standards by an independent certified public
accountant. Such standards shall include a definition of
administrative costs, which costs shall not exceed ten percent
(10%) of each approved [private] special education school's
total costs.
(5) (i) Where the amount of an approved [private] special
education school's reportable costs in the 2004-2005 fiscal year
20260HB2167PN2809 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
is less than the amount of revenues received by the approved
[private] special education school for the 2004-2005 fiscal year
from the Commonwealth for the provision of educational services
to children who have been approved by the Department of
Education, the difference may be retained by the approved
[private] special education school for use in the 2005-2006
fiscal year.
(ii) Beginning in the 2005-2006 fiscal year, where the
amount of reportable costs in a fiscal year is less than the
amount of revenues received in that fiscal year by the approved
[private] special education school from the Commonwealth for the
provision of educational services to children who have been
approved by the Department of Education, the approved [private]
special education school shall remit the difference to the
Commonwealth. Any such funds shall be deposited in the Audit
Resolution Fund for the resolution of previous audits.
(6) Audits of cost reports submitted for school years prior
to the 2004-2005 school year shall be completed in a manner
consistent with prior audit practices. An approved [private]
special education school may submit an audit for the 2003-2004
school year prepared by an independent certified public
accountant provided the following have occurred:
(i) The Department of Education has failed to process and
settle the cost reports within twelve (12) months from
submission by the approved [private] special education school.
(ii) The Department of Education has failed to settle any
appeals or postsettlement resolution within fifteen (15) months
from submission by the approved [private] special education
school.
(iii) The approved [private] special education school has
20260HB2167PN2809 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
responded to reasonable requests for information and documents
by the Department of Education.
Upon receipt of the independent audit for the 2003-2004 school
year, the Department of Education shall have three (3) months to
review the audit and settle any outstanding payments due to or
from the approved [private] special education school.
(c.3) For payments made during the 2004-2005 school year,
the Department of Education shall establish an approved tuition
rate for each approved [private] special education school by
dividing the amount calculated under subsection (a.1) by the
full-time equivalent enrollment for the approved [private]
special education school for the 2003-2004 school year. This
calculation shall be adjusted for residential and non-
residential students. The approved tuition rate multiplied by
the full-time equivalent enrollment shall not exceed the amount
calculated under subsection (a.1).
(c.4) Beginning August 15, 2004, and no later than August 15
of each year thereafter, each approved [private] special
education school shall submit budget information for the current
school year on forms and in a manner determined by the
Department of Education. The budget information shall include a
proposed tuition rate or rates and projected full-time
equivalent enrollment for the current year. An approved
[private] special education school may submit separate proposed
tuition rates for up to three levels of services and for day and
residential students, pursuant to the guidelines established
under subsection (c.7).
(c.5) For payments made during the 2005-2006 school year and
each school year thereafter, beginning January 15, 2005, and no
later than January 15 of each year thereafter, the Department of
20260HB2167PN2809 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Education shall establish an approved tuition rate or rates and
full-time equivalent enrollment for each approved [private]
special education school for the current school year. Where an
approved [private] special education school has submitted one
tuition rate, the approved tuition rate shall be determined by
dividing the amount calculated under subsection (a.2) by the
full-time equivalent enrollment for the approved [private]
special education school for the prior school year. Where an
approved [private] special education school has submitted more
than one tuition rate, the sum of the products of each approved
tuition rate and corresponding full-time equivalent enrollment
for the approved [private] special education school for the
prior school year shall equal the amount calculated under
subsection (a.2). An approved [private] special education school
may enroll students in excess of the approved full-time
equivalent enrollment. Where an approved [private] special
education school enrolls students in excess of the approved
full-time equivalent enrollment, it must show a corresponding
decrease in its approved tuition rate.
(c.6) No later than May 1, 2005, and May 1 of each school
year thereafter, the department shall annually publish a report
on the department's publicly accessible World Wide Web site that
shall include, but not be limited to:
(1) The approved tuition rate or rates for each approved
[private] special education school for the current school year.
(2) A description of the exceptionalities each approved
[private] special education school is approved to serve.
(3) A description of all programs and services offered by
each approved [private] special education school.
(c.7) No later than November 1, 2004, the Department of
20260HB2167PN2809 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Education shall issue guidelines establishing the levels of
services to assist each approved [private] special education
school in determining its proposed tuition rate or rates. The
guidelines shall allow an approved [private] special education
school to establish approved tuition rates for up to three
levels of services and for day and residential students.
* * *
(c.9) Beginning with audited data for the 2016-2017 school
year, the total of the amounts remitted to the Commonwealth
under subsection (c.2)(5)(ii) shall be distributed to each
approved [private] special education school with reportable
costs that exceed the amount of revenue received as follows:
(1) Subtract the amount of revenue received under subsection
(a.2) from the reportable costs in the audit submitted to the
Department of Education under subsection (c.2)(4).
(2) Multiply the amount in paragraph (1) by the lesser of
the total of the amounts remitted to the Commonwealth under
subsection (c.2)(5)(ii) or the total of the amounts in paragraph
(1).
(3) Divide the amount in paragraph (2) by the total of the
amounts in paragraph (1).
(4) Funds distributed under this subsection shall be paid in
May of the following school year.
(5) Funds distributed under this subsection shall not be
included in determining the payment amount under subsection
(a.2).
* * *
(e) The following words and phrases as used in this section
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
20260HB2167PN2809 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Approved full-time equivalent enrollment" means the full-
time equivalent enrollment set by the Department of Education
pursuant to the provisions of subsection (c.3) or (c.5).
"Approved tuition rate" means the final tuition rate set by
the Department of Education pursuant to the provisions of
subsection (c.3) or (c.5).
"Audit," for the purpose of subsection (a.1), means the
fiscal audit issued by the Governor's Office of the Budget,
excluding questioned costs.
"Claim form," for the purpose of subsection (a.1), means the
form that each approved [private] special education school
submitted following the end of the fiscal year showing the final
costs claimed for the fiscal year.
"Current school year" means the year in which payment is
being made.
"Full-time equivalent enrollment" means the number of
students enrolled in an approved [private] special education
school pursuant to subsection (a) or (b).
"Independent certified public accountant" means a member of
the American Institute of Certified Public Accountants that has
a minimum of five (5) years' verifiable experience in performing
audits of government funds for nonprofit organizations with a
comparable or larger annual budget.
"Midyear budget," for the purpose of subsection (a.1), means
the adjusted budget for the 2003-2004 school year submitted by
each approved [private] special education school in January
2004.
"Preliminary budget," for the purpose of subsection (a.1),
means the budget for the 2004-2005 school year submitted by each
approved [private] special education school in June 2004.
20260HB2167PN2809 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Prior school year" means the year for which payment is made
during the current year.
"Proposed tuition rate" means the amount submitted by each
approved [private] special education school to the Department of
Education to be used in establishing the cost that the approved
[private] special education school incurred to provide
instructional and residential services for each full-time
equivalent student. An approved [private] special education
school may submit information to establish costs for up to three
(3) levels of services and for day and residential students.
Section 1377. Payment of Cost of Tuition and Maintenance of
Certain Children with Disabilities.--* * *
(c) For the purpose of enabling the Department of Education
to determine from time to time what amounts are due to schools
for the visually impaired or hearing impaired or for the
cerebral palsied and/or brain injured and/or muscular
dystrophied or for the socially and emotionally disabled and/or
intellectually disabled hereunder, such schools shall forward to
the department, at such times and in such form as the department
shall prescribe, sworn statements setting forth the names, ages,
and residences of all pupils enrolled hereunder, specifying the
school districts liable for a part of the cost of tuition and
maintenance of any such pupils, the per capita cost of and
maintenance of pupils, and such other information as the
department shall require.
For the purpose of providing adequate administration of the
program and to carry out the preaudit functions authorized in
section 1376(a), one-half of one percent (.50%) of the total
appropriations for approved [private] special education schools
from all funds shall be allocated to the Department of
20260HB2167PN2809 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Education.
(d) When, during the course of the 1982-1983 school year,
programs for children with disabilities are caused to be
transferred from schools or institutions for the visually
impaired or hearing impaired, or cerebral palsied or brain
injured or muscular dystrophied or intellectually disabled, or
socially and emotionally disabled, as provided for in sections
1376 and 1376.1, to school districts or intermediate units, as
provided for in sections 2509 and 2509.1, under unanticipated or
emergency circumstances, and when such transfers necessitate the
transfer of funds from the appropriation to the Department of
Education for special education for approved [private] special
education schools to the appropriation to the Department of
Education for payments on account of special education of
children with disabilities in public schools, the Secretary of
Education shall be empowered so to transfer such funds, upon
approval of the Secretary of the Budget and written notification
to the State Treasurer and the chairmen of the House and Senate
Appropriations and Education Committees.
Section 1377.1. Transfer of Funds for Transferal Programs.--
When, during the course of a school year or after the end of a
school year, programs for children with disabilities are caused
to be transferred from schools or institutions for the visually
impaired or hearing impaired, or cerebral palsied or brain
injured or muscular dystrophied or intellectually disabled, or
socially and emotionally disabled, as provided for in sections
1376 and 1376.1, to school districts or intermediate units, as
provided for in sections 2509 and 2509.1, and when such
transfers necessitate the transfer of funds from the
appropriation to the Department of Education for special
20260HB2167PN2809 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
education for approved [private] special education schools to
the appropriation to the Department of Education for payments on
account of special education of children with disabilities in
public schools, the Secretary of Education shall be empowered to
transfer such funds, upon approval of the Secretary of the
Budget and written notification to the State Treasurer and the
chairmen of the House and Senate Appropriations and Education
Committees.
Section 1377.2. Emergency Permits at Approved [Private]
Special Education Schools and Chartered Schools for the Deaf and
Blind.--Approved [private] special education schools and
chartered schools for the deaf and blind shall have the
authority to apply for emergency permits through the Department
of Education pursuant to the criteria for eligibility
established under 22 Pa. Code § 49.31 (relating to criteria for
eligibility) as if the teachers were employed by a public school
entity, provided that all other conditions for obtaining an
emergency permit are met.
Section 1383. Extended Special Education Enrollment Due to
COVID-19.--* * *
(d) 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:
"IEP." An individualized education program established under
22 Pa. Code Ch. 14.
"School entity." A school district, intermediate unit, area
career and technical school, charter school, regional charter
school, cyber charter school, approved [private] special
education school or chartered school for the education of the
deaf and blind.
20260HB2167PN2809 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 2. The definition of "school entity" in section
1301-B of the act is amended to read:
Section 1301-B. Definitions.
The following words and phrases when used in this article
shall have the meaning given to them in this section unless the
context clearly indicates otherwise:
* * *
"School entity." A school district, intermediate unit, area
career and technical school, charter school, cyber charter
school, regional charter school, approved [private] special
education school, chartered school for the education of the deaf
or the blind or private residential rehabilitative institution.
Section 3. Sections 2502.51(d)(1), 2509.5(f) and 2561(8) of
the act are amended to read:
Section 2502.51. Basic Education Funding for 2011-2012
School Year.--* * *
(d) The following shall apply:
(1) (i) Funds received by a school district under
subsection (a)(3)(ii)(A) shall be used to satisfy judgments and
past-due accounts payable beyond ninety (90) or more days,
including health care benefits, payments to charter schools,
payments to approved [private] special education schools and
payments to intermediate units.
(ii) If all judgments have been satisfied and past-due
accounts paid, funds may be used for timely payment of health
care benefits, payments to charter schools, payments to approved
[private] special education schools, payments to intermediate
units and for other expenses approved by the Secretary of
Education to ensure the fiscal stability of the school district.
* * *
20260HB2167PN2809 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 2509.5. Special Education Payments to School
Districts.--* * *
(f) The Secretary of Education shall develop a definition of
severely classified exceptional students by September 20, 1996.
This definition may include the primary exceptionality, level of
intervention, type of support and related services requirements
elements currently collected through the PennData system. This
definition shall not include students who are institutionalized,
in approved [private] special education school placements, in
detention home programs, in mentally gifted programs or in early
intervention programs operated under the provisions of the act
of December 19, 1990 (P.L.1372, No.212), known as the "Early
Intervention Services System Act." This definition shall be
submitted to the majority chairman and the minority chairman of
the Appropriations Committee and the Education Committee of the
Senate and the majority chairman and the minority chairman of
the Appropriations Committee and the Education Committee of the
House of Representatives for review and comment no later than
September 20, 1996. No sooner than fifteen (15) days and not
later than thirty (30) days after submission of the proposed
definition to the committees, the Secretary of Education shall
approve a definition of severely classified exceptional
students.
* * *
Section 2561. Tuition Charges for Pupils of Other
Districts.--A school district receiving elementary or high
school pupils or career and technical or other extension
education pupils who are residents of another school district
shall compute the tuition charges as follows:
* * *
20260HB2167PN2809 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(8) Charter School Tuition Charge. When a charter school
established pursuant to Article XVII-A enrolls any eligible
student in an approved [private] special education school
pursuant to section 1376, its "tuition charge per elementary
pupil" or its "tuition charge per secondary pupil" shall be
calculated in accordance with clauses (1) through (3).
Section 4. No later than 30 days after the effective date of
this section, the State Board of Education shall initiate the
promulgation of a final-omitted regulation in accordance with
the act of June 25, 1982 (P.L.633, No.181), known as the
Regulatory Review Act, to change the term "approved private
school" to "approved special education school" in 22 Pa. Code
Ch. 14. No other changes shall be included in the final-omitted
regulation.
Section 5. No later than 60 days after the effective date of
this section, the Department of Education shall initiate the
promulgation of a final-omitted regulation in accordance with
the act of June 25, 1982 (P.L.633, No.181), known as the
Regulatory Review Act, to change the term "approved private
school" to "approved special education school" in 22 Pa. Code
Chs. 171 and 711. No other changes shall be included in the
final-omitted regulation.
Section 6. A reference in statute or regulation to an
"approved private school" shall be deemed a reference to an
"approved special education school."
Section 7. An appropriation in a General Appropriation Act
made for "special education - approved private schools" shall be
deemed to be an appropriation made for "special education -
approved special education schools."
Section 8. Upon the effective date of this section, an
20260HB2167PN2809 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
approved private school shall be deemed to be an approved
special education school.
Section 9. This act shall take effect immediately.
20260HB2167PN2809 - 18 -
1
2
3