HB 1500 — 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.

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1795 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

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1500DAVIS, DELLOSO, DONAHUE, FLEMING, GUENST, HADDOCK, HANBIDGE, HILL-EVANS, HOHENSTEIN, INGLIS, KRUEGER, McNEILL, PIELLI, RIVERA, SANCHEZ, SCHLOSSBERG, SHUSTERMAN, STEELE AND VENKAT, MAY 30, 2025 INTRODUCEDREFERRED BYTO ISAACSON,COMMITTEE SCHWEYER,ON CURRY,EDUCATION, FRIEL,MAY O'MARA,30, OTTEN,2025 PROBST,AN PROKOPIAK,ACT SMITH-WADE-EL,Ameact BOROWSKI,relating BRENNAN,to T.the public school system, including certainAn provisions applicable as well to private and parochial schools;

DAVIS, DELLOSO, DONAHUE, FLEMING, GUENST, HADDOCK, HANBIDGE, HILL-EVANS, HOHENSTEIN, INGLIS, KRUEGER, McNEILL, PIELLI, RIVERA, SANCHEZ, SCHLOSSBERG, SHUSTERMAN, STEELE AND VENKAT, MAY 30, 2025 REFERRED TO COMMITTEE ON EDUCATION, MAY 30, 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;

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, forber enrollment and notification, for enrollee wellness checks and for applicability of other provisions of this act and ofofs and other acts and regulations and providing for cyber charter school moratorium;

(5) No later than April 1, 2026, transmit the 20250HB1500PN1807 - 2 - recommendations to the Governor, the Secretary of Education and 20250HB1500PN1795 - 2 - the General Assembly.

(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 20250HB1500PN1807 - 3 - performance of their duties as members of the council.

20250HB1500PN1795 - 3 - (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.

* * * 20250HB1500PN1807 - 4 - Section 3.

Section 1372(8) of the act is amended by adding a 20250HB1500PN1795 - 4 - subclause to read:

(IV) Total cost of speech and language services if services 20250HB1500PN1807 - 5 - are provided to the student receiving services.

20250HB1500PN1795 - 5 - (V) Total cost of individual services, including occupational therapy, physical therapy, vision services, hearing services, orientation and mobility and related services.

* * * 20250HB1500PN1807 - 6 - "Comprehensive support and improvement" shall mean a 20250HB1500PN1795 - 6 - designation under 20 U.S.C.

(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 20250HB1500PN1807 - 7 - receive the Statewide cyber charter school tuition rate under 20250HB1500PN1795 - 7 - subsection (e) adjusted in accordance with the following:

or (ii) the average of the most recent percentage increase in the Statewide average weekly wage and the employment cost index as defined in section 302301 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.

(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 by the corresponding multiplier specified in section 2509.5(bbb)(2) (i.1)(A), (B) or (C) or the most recently enacted statute 20250HB1500PN1807 - 8 - specifying the multiplier for Category 1, 2 or 3 students.

For 20250HB1500PN1795 - 8 - 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).

(h) If a cyber charter school incurs extraordinary expenses 20250HB1500PN1807 - 9 - in providing a special education program or service to one or 20250HB1500PN1795 - 9 - more students with disabilities, the cyber charter school may apply to the Secretary of Education for money in accordance with section 2509.8.

* * * (5) Develop forms, including the standard application 20250HB1500PN1807 - 10 - forms under paragraphs (1) and (2) and notification form 20250HB1500PN1795 - 10 - under paragraph (6)(ii) and section 1748-A(b), necessary to carry out the provisions of this subdivision.

(1) Annually assess whether each cyber charter school is meeting the goals of its charter and is in compliance with 20250HB1500PN1807 - 11 - the provisions of the charter and conduct a comprehensive 20250HB1500PN1795 - 11 - review prior to granting a [five-year] renewal of the charter.

(b) Refund.--Any unassigned fund balance in place on June 20250HB1500PN1807 - 12 - 30, 2026, and on June 30 of each year thereafter, in excess of 20250HB1500PN1795 - 12 - 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.

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 payment, employment incentive or money transfer shall be 20250HB1500PN1807 - 13 - refunded on a pro rata basis to all school districts that paid 20250HB1500PN1795 - 13 - 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.

or (4) provide payments, gifts, reimbursement or other incentives to a parent or guardian of any student or prospective student for enrolling, considering enrolling or 20250HB1500PN1807 - 14 - providing information to any parent or guardian enrolling or 20250HB1500PN1795 - 14 - considering enrolling a student in the charter school.

(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 months old or an insurance document no more than three 20250HB1500PN1807 - 15 - months old.

20250HB1500PN1795 - 15 - (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.

(1) A list of all entities providing financing for 20250HB1500PN1807 - 16 - capital projects of the cyber charter school.

20250HB1500PN1795 - 16 - (2) All expenditures to an educational management service provider.

The department shall post the information required under this paragraph on its publicly 20250HB1500PN1807 - 17 - accessible Internet website.

20250HB1500PN1795 - 17 - (iii) Provide the department with a list of all entities providing financing for capital projects of the cyber charter school.

20250HB1500PN1807 - 18 - Section 1743.1-A.

Cyber charter school fund balance 20250HB1500PN1795 - 18 - accountability.

(ii) Subtract the product calculated in subparagraph (i) from the end-of-year fund balance for the capital 20250HB1500PN1807 - 19 - projects fund.

20250HB1500PN1795 - 19 - (iii) Determine the greater of $0 or the difference in subparagraph (ii).

"Capital project fund." The money accounting for financial 20250HB1500PN1807 - 20 - resources that are restricted, committed or assigned to be 20250HB1500PN1795 - 20 - obligated or expended for capital outlays by a cyber charter school.

Cyber charter school application, renewal and 20250HB1500PN1807 - 21 - amendment.

20250HB1500PN1795 - 21 - (a) Application.--In addition to the provisions of section 1719-A, an application to establish a cyber charter school shall also include the following:

20250HB1500PN1807 - 22 - (a) Notice to school district.-- 20250HB1500PN1795 - 22 - (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).

20250HB1500PN1807 - 23 - (iv) A school district that has notified the cyber 20250HB1500PN1795 - 23 - 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.

(ix) The department shall revoke or deny renewal of a cyber charter school's charter if, in any school year other than a cyber charter school's first year of 20250HB1500PN1807 - 24 - operation, the number of administrative fines assessed on 20250HB1500PN1795 - 24 - the cyber charter school exceeds 1% of the cyber charter school's average daily membership in the previous school year.