HB 355 — 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 advertising; and, in charter schools, further providing for definitions, for charter school requirements and for powers of board of trustees and providing for fund balance limits.

PRIOR PRINTER'S NO.

1744 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

2110355 THE2019 GENERALINTRODUCED ASSEMBLYBY OFREESE, PENNSYLVANIADOWLING, HOUSEMARSHALL, BILLTOPPER, SessionBROWN, COOK, DeLUCA, DUNBAR, GROVE, HARRIS, HICKERNELL, KAIL, MILLARD, MOUL AND TOBASH, MAY 7, 2019 REFERRED TO COMMITTEE ON EDUCATION, MAY 7, 2019 AN ACT Amending the act of No.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;

355amending, 2019revising, INTRODUCEDconsolidating BYand REESE,changing DOWLING, MARSHALL, TOPPER, BROWN, COOK, MOUL, TOBASH, STAATS AND KINSEY, MAY 7, 2019AIL, MILLARD, AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 11, 2019 AN ACT Amending the actfor ofadvertising; 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,and, revising,in consolidatingcharter andschools, changingfurther theprovidingg lawsfor relatingdefinitions, thereto,"for incharter preliminaryschool provisions,requirements, providingfor powers of board of trustees and for advertising;fund balance limits.

and, in charter schools, further providing for definitions, for charter school requirements, AND for <-- limits.of board of trustees and PROVIDING for fund balance <-- The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

20190HB0355PN2110 - 2 - "Appeal board" shall mean the State Charter School Appeal 20190HB0355PN1744 - 2 - Board established by this article.

§ 501(c)(3)), that provides funding, resources or otherwise serves to support a charter school entity, either directly or through an affiliated 20190HB0355PN2110 - 3 - entity.

20190HB0355PN1744 - 3 - "Chief administrator" shall mean an individual appointed by a board of trustees to oversee and manage the operation of a charter school entity.

"Immediate family member" shall mean a parent, spouse, child, <-- brother, sister, grandparent or grandchild.

"FAMILY MEMBER" SHALL MEAN A PARENT, STEPPARENT, CHILD, <-- STEPCHILD, SPOUSE, DOMESTIC PARTNER, BROTHER, SISTER, 20190HB0355PN2110 - 4 - STEPBROTHER, STEPSISTER, GRANDPARENT, GRANDCHILD, PARENT-IN-LAW, BROTHER-IN-LAW, SISTER-IN-LAW, AUNT, UNCLE OR FIRST COUSIN.

20190HB0355PN1744 - 4 - "Nonrelated" shall mean an individual who is not an immediate <-- A family member.

<-- "Regional charter school" shall mean an independent public school established and operated under a charter from more than one local board of school directors and in which students are enrolled or attend.

20190HB0355PN2110 - 5 - (1) Except as otherwise provided in this article, a charter school entity is exempt from statutory requirements established in this act, from regulations of the State board and the standards of the secretary not specifically applicable to charter [schools] school entities.

Charter [schools] school 20190HB0355PN1744 - 5 - entities are not exempt from statutes applicable to public schools other than this act.

20190HB0355PN2110 - 6 - (9) A charter school entity shall provide a minimum of one hundred eighty (180) days of instruction or nine hundred (900) hours per year of instruction at the elementary level, or nine hundred ninety (990) hours per year of instruction at the secondary level.

Nothing in this clause shall preclude the use 20190HB0355PN1744 - 6 - of computer and satellite linkages for delivering instruction to students.

(9.1)(10) (I)Boards Aof CYBERtrustees CHARTERand SCHOOLcontractors SHALLof ELECTRONICALLYcharter <--[schools] DISTRIBUTEschool ONentities Ashall SEMI-ANNUALbe BASISsubject TOto ADMINISTRATORS,the TRUSTEES,following EMPLOYEES,statutory STAFFrequirements ANDgoverning PARENTSconstruction ANDprojects GUARDIANSand OFconstruction- STUDENTSrelated OFwork: THE CYBER CHARTER SCHOOL, A SINGLE-PAGE DOCUMENT PROVIDED BY THE OFFICE OF STATE INSPECTOR GENERAL THAT DESCRIBES THE FOLLOWING:

(A) THE POWERS OF THE OFFICE OF STATE INSPECTOR GENERAL TO INVESTIGATE CLAIMS OF FRAUD, WASTE, MISCONDUCT AND ABUSE.

(B) HOW TO CONTACT OR FILE A COMPLAINT WITH THE OFFICE OF STATE INSPECTOR GENERAL.

(C) THE STATUTORY PROTECTIONS THAT NO PERSON MAY TAKE OR THREATEN TO TAKE ACTION AGAINST AN EMPLOYEE AS A REPRISAL FOR MAKING A COMPLAINT OR DISCLOSING INFORMATION TO THE OFFICE OF STATE INSPECTOR GENERAL, EXCEPT IF THE COMPLAINT WAS MADE OR THE INFORMATION WAS DISCLOSED WITH THE KNOWLEDGE THAT THE COMPLAINT OR INFORMATION WAS FALSE OR WITH WILLFUL DISREGARD FOR THE TRUTH OR FALSITY OF THE COMPLAINT OR INFORMATION.

(II) FOR PURPOSES OF THIS PARAGRAPH, A CYBER CHARTER SCHOOL SHALL BE CONSIDERED AN EXECUTIVE AGENCY FOR THE PURPOSE OF ARTICLE V-A OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS "THE ADMINISTRATIVE CODE OF 1929." (10) Boards of trustees and contractors of charter [schools] school entities shall be subject to the following statutory requirements governing construction projects and construction- 20190HB0355PN2110 - 7 - related work:

20190HB0355PN1744 - 7 - 11 (relating to ethics standards and financial disclosure).

§ 1103(a) (relating to restricted activities), and the violator shall be subject to the penalties imposed under the jurisdiction of the State Ethics Commission.] for the purposes 20190HB0355PN2110 - 8 - of 65 Pa.C.S.

(i) The administrator has submitted a sworn statement to the board of trustees of the charter school entity and the sworn statement details the work for the other entity and includes the 20190HB0355PN1744 - 8 - projected number of hours, rate of compensation and projected duration.

20190HB0355PN2110 - 9 - (2) A copy of the sworn statement under clause (1)(i) and the resolution by the board of trustees granting the permission under clause (1)(ii) shall be provided to, and kept on file with, the charter school entity and the local board of school directors or, in the case of a cyber charter school, the department.

(3) No administrator of a charter school entity or immediate <-- family member of the administrator may serve as a voting member of the board of trustees of the charter school entity that employs the administrator.

Section 1716-A(c) of the act is amended and the 20190HB0355PN1744 - 9 - section is amended by adding subsections to read:

Powers of Board of Trustees.--* * * (b.1) (1) For a charter school or regional charter school chartered after the effective date of this subsection, an individual shall be prohibited from serving as a voting member 20190HB0355PN2110 - 10 - of the board of trustees of the charter school or regional charter school if the individual or an immediate A family member <-- receives compensation from or is employed by or is a member of the local board of school directors who participated in the initial review, approval, oversight, evaluation or renewal process of the charter school or regional charter school chartered by that board.

§ 1103(a) and shall be subject to the 20190HB0355PN1744 - 10 - penalties imposed under the jurisdiction of the State Ethics Commission.

(4) A contract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within ninety (90) days of the discovery of the 20190HB0355PN2110 - 11 - violation.

(2) Within one (1) year of the effective date of this subsection, at least one member of the board of trustees of a charter school entity shall be a parent of a child currently 20190HB0355PN1744 - 11 - attending the charter school entity.

20190HB0355PN2110 - 12 - (e) (1) A majority of the voting members of the board of trustees shall constitute a quorum.

(4) Review of annual Federal and State tax filings, including the Internal Revenue Service Form 990, Return of 20190HB0355PN1744 - 12 - Organization Exempt from Income Tax and all related schedules and appendices for the charter school entity and charter school foundation, if applicable.

20190HB0355PN2110 - 13 - (6) Review of the selection and acceptance process of all contracts publicly bid pursuant to section 751.

(2) Where funding is provided by a charter school foundation, the amount of funds and a description of the use of 20190HB0355PN1744 - 13 - the funds.

20190HB0355PN2110 - 14 - (j) (1) Notwithstanding any other provision of law, a charter school entity and any affiliated charter school foundation shall make copies of its annual Federal and State tax filings available upon request and on the charter school entity's or foundation's publicly accessible Internet website, if available, including Internal Revenue Service Form 990, Return of Organization Exempt from Income Tax and all related schedules and appendices.

Maximum Unassigned Fund Charter School Entity Balance as Percentage of 20190HB0355PN1744 - 14 - Total Budgeted Expenditures Total Budgeted Expenditures Less than or equal to $11,999,999 12% Between $12,000,000 and $12,999,999 11.5% Between $13,000,000 and $13,999,999 11% Between $14,000,000 and $14,999,999 10.5% 20190HB0355PN2110 - 15 - Between $15,000,000 and $15,999,999 10% Between $16,000,000 and $16,999,999 9.5% Between $17,000,000 and $17,999,999 9% Between $18,000,000 and $18,999,999 8.5% Greater than or equal to $19,000,000 8% (2) For the 2018-2019 school year and each school year thereafter, any unassigned fund balance in place on June 30, 2019, and on June 30 of each year thereafter in excess of the charter school entity unassigned fund balance limit shall be refunded on a pro rata basis within ninety (90) days to all school districts that paid tuition to the charter school entity in the prior school year, based upon the number of students for whom each school district paid tuition to the charter school entity multiplied by the school district's per student payment under section 1725-A.

20190HB0355PN1744 - 15 - (4) Unassigned funds of the charter school entity in excess of the unassigned fund balance limit may not be used to pay bonuses to any administrator, board of trustees member, employe, staff member or contractor and may not be transferred to a charter school foundation.

If a charter school entity uses funds 20190HB0355PN2110 - 16 - in excess of the unassigned fund balance limit to pay bonuses to any administrator, board of trustees member, employe, staff member or contractor or transfers such funds to a charter school foundation, the value of the bonus payment or fund transfer shall be refunded on a pro rata basis to all school districts that paid tuition to the charter school entity in the prior school year, based upon the number of students for whom each school district paid tuition to the charter school entity multiplied by the school district's per student payment under section 1725-A.