HB 1372 — 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, further providing for advertising and sponsorships; and, in charter schools, further providing for definitions, for charter school requirements, for powers of board of trustees, for facilities, for enrollment, for funding for charter schools, for funding for cyber charter schools, for powers and duties of department, for assessment and evaluation and for cyber charter school requirements and prohibitions, providing for fund balance limits and for educational management service providers, further providing for school district and intermediate unit responsibilities and for establishment of cyber charter school, providing for renewal of charters, for charter amendments and for causes for nonrenewal, revocation or termination and further providing for State Charter School Appeal Board review, for cyber charter school application, for enrollment and notification and for applicability of other provisions of this act and of other acts and regulations.

PRINTER'S NO.   1568

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1372
                                               Session of
                                                 2025

     INTRODUCED BY CIRESI, MADDEN, ISAACSON, PROBST, VENKAT, SANCHEZ,
        HILL-EVANS, PIELLI, KHAN, HADDOCK, O'MARA, BOROWSKI, DONAHUE,
        WAXMAN, HOWARD, RIVERA, CERRATO, SCHLOSSBERG, BOYD AND
        CEPEDA-FREYTIZ, MAY 1, 2025

     REFERRED TO COMMITTEE ON EDUCATION, MAY 2, 2025


                                    AN ACT
 1   Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
 2      act relating to the public school system, including certain
 3      provisions applicable as well to private and parochial
 4      schools; amending, revising, consolidating and changing the
 5      laws relating thereto," in preliminary provisions, further
 6      providing for advertising and sponsorships; and, in charter
 7      schools, further providing for definitions, for charter
 8      school requirements, for powers of board of trustees, for
 9      facilities, for enrollment, for funding for charter schools,
10      for funding for cyber charter schools, for powers and duties
11      of department, for assessment and evaluation and for cyber
12      charter school requirements and prohibitions, providing for
13      fund balance limits and for educational management service
14      providers, further providing for school district and
15      intermediate unit responsibilities and for establishment of
16      cyber charter school, providing for renewal of charters, for
17      charter amendments and for causes for nonrenewal, revocation
18      or termination and further providing for State Charter School
19      Appeal Board review, for cyber charter school application,
20      for enrollment and notification and for applicability of
21      other provisions of this act and of other acts and
22      regulations.
23      The General Assembly of the Commonwealth of Pennsylvania
24   hereby enacts as follows:
25      Section 1.    Section 134 of the act of March 10, 1949 (P.L.30,
26   No.14), known as the Public School Code of 1949, is amended by
27   adding a subsection to read:
 1      Section 134.    Advertising and Sponsorships.--* * *
 2      (a.1)     A public school entity may not pay for or utilize any
 3   other form of consideration to sponsor a public event.
 4      * * *
 5      Section 2.    The definitions of "family member" and "school
 6   district of residence" in section 1703-A of the act, added July
 7   11, 2024 (P.L.618, No.55), are amended and the section is
 8   amended by adding definitions to read:
 9      Section 1703-A.    Definitions.--The following words and
10   phrases when used in this article shall have the meanings given
11   to them in this section unless the context clearly indicates
12   otherwise:
13      * * *
14      "Eligible applicant" shall mean a student who:
15      (1)   seeks to enroll in a grade level offered by the charter
16   school entity;
17      (2)   meets the requirements of 22 Pa. Code §§ 11.12 (relating
18   to school age), 11.13 (relating to compulsory school age), 11.14
19   (relating to admission to kindergarten when provided), 11.15
20   (relating to admission of beginners), 11.16 (relating to early
21   admission of beginners) and 12.1 (relating to free education and
22   attendance); and
23      (3)   satisfies applicable student residency requirements.
24      "Emergency" shall mean a manmade or natural disaster. The
25   term includes a fire, flood, environmental hazard, damage to a
26   school building or other circumstance that impacts or could
27   impact the health or safety of students or staff or renders all
28   or part of a charter school facility unfit for use or
29   occupation.
30      "Family member" shall mean a parent, stepparent, child,

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 1   stepchild, spouse, domestic partner, brother, sister,
 2   stepbrother [or], stepsister[.], grandparent, grandchild,
 3   parent-in-law, brother-in-law, sister-in-law, aunt, uncle or
 4   first cousin.
 5      * * *
 6      "Public hearing."   A meeting held in accordance with 65
 7   Pa.C.S. Ch. 7 (relating to open meetings) at which the
 8   contemplated action is considered and members of the public are
 9   provided an opportunity to offer comment during the meeting.
10      * * *
11      "School district of residence" shall mean the school district
12   in this Commonwealth in which [the parents or guardians of a
13   child reside.] a child resides as determined under section 1302
14   and 22 Pa. Code § 11.11(a)(1) (relating to entitlement of
15   resident children to attend public schools).
16      * * *
17      Section 3.   Section 1715-A(a) introductory paragraph, (1),
18   (2), (3), (4), (5), (6), (8), (9) and (10) introductory
19   paragraph and (c)(1) introductory paragraph and (3) of the act,
20   amended July 11, 2024 (P.L.618, No.55), are amended to read:
21      Section 1715-A.   Charter School Requirements.--(a)    [Charter
22   schools] A charter school entity shall be required to comply
23   with the following provisions:
24      (1)   Except as otherwise provided in this article, a charter
25   school [is] entity shall be exempt from statutory requirements
26   established in this act, from regulations of the State board and
27   the standards of the secretary not specifically applicable to
28   charter schools. [Charter schools are not] A charter school
29   entity shall not be exempt from statutes applicable to public
30   schools other than this act.

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 1      (2)    A charter school entity shall be accountable to the
 2   parents, the public and the Commonwealth, with the delineation
 3   of that accountability reflected in the charter. Strategies for
 4   meaningful parent and community involvement shall be developed
 5   and implemented by each school.
 6      (3)    A charter school entity shall not unlawfully
 7   discriminate in admissions, hiring or operation.
 8      (4)    A charter school entity shall be nonsectarian in all
 9   operations.
10      (5)    A charter school entity shall not provide any religious
11   instruction, nor shall it display religious objects and symbols
12   on the premises of the charter school entity.
13      (6)    A charter school entity shall not advocate unlawful
14   behavior.
15      * * *
16      (8)    A charter school entity shall participate in the
17   Pennsylvania State Assessment System as provided for in 22 Pa.
18   Code Ch. [5 (relating to curriculum), or subsequent regulations
19   promulgated to replace 22 Pa. Code Ch. 5,] 4 (relating to
20   academic standards and assessment) in the manner in which the
21   school district in which the charter school entity is located is
22   scheduled to participate.
23      (9)    A charter school entity shall provide a minimum of one
24   hundred eighty (180) days of instruction or nine hundred (900)
25   hours per year of instruction at the elementary level, or nine
26   hundred ninety (990) hours per year of instruction at the
27   secondary level. Nothing in this clause shall preclude the use
28   of computer and satellite linkages for delivering instruction to
29   students.
30      (10)     Boards of trustees and contractors of [charter schools]

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 1   a charter school entity shall be subject to the following
 2   statutory requirements governing construction projects and
 3   construction-related work:
 4      * * *
 5      (c)    (1)   No individual who serves as an administrator for a
 6   charter school entity may receive compensation from another
 7   charter school entity [or], from an educational management
 8   service provider, from a charter school foundation or from a
 9   company that provides management or other services to a charter
10   school entity, unless:
11      * * *
12      (3)    An administrator of a charter school entity and a family
13   member of the administrator may not serve as a voting member of
14   the board of trustees of the charter school entity that employs
15   the administrator[.] or of a charter school foundation that
16   supports the charter school entity.
17      * * *
18      Section 4.    Sections 1716-A(h) and 1722-A(f)(3) and (4) of
19   the act, amended or added July 11, 2024 (P.L.618, No.55), are
20   amended and the sections are amended by adding subsections to
21   read:
22      Section 1716-A.    Powers of Board of Trustees.--* * *
23      (b.4)   An individual may not serve as a voting member of the
24   board of trustees of a cyber charter school if any of the
25   following apply:
26      (1)    The individual or a family member of the individual is
27   employed by, or receives compensation from, the cyber charter
28   school.
29      (2)    The individual is employed by either of the following:
30      (i)    The board of trustees or board of directors of a charter

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 1   school foundation that supports the cyber charter school.
 2      (ii)    The board of trustees or board of directors of an
 3   educational management service provider that contracts with the
 4   cyber charter school.
 5      (3)    The individual serves as a voting member of the board of
 6   trustees of another charter school entity.
 7      (b.5)   A member of the board of trustees of a cyber charter
 8   school, or a family member of a member of the board of trustees,
 9   may not directly or indirectly through any other individual,
10   entity, partnership, corporation in which the member holds stock
11   or a financial interest or through any other organization
12   provide any of the following to the cyber charter school:
13      (1)    A loan, forbearance or forgiveness of a loan or other
14   debt.
15      (2)    A service or product.
16      (3)    A lease of real or personal property.
17      (b.6)   A member of the board of trustees of a cyber charter
18   school who violates subsection (b.4) or (b.5) shall be deemed to
19   have violated 65 Pa.C.S. § 1103(a) and shall be subject to the
20   penalties under the jurisdiction of the State Ethics Commission.
21   A contract entered into in violation of subsection (b.4) or
22   (b.5) shall be voidable by a court of competent jurisdiction.
23      * * *
24      (h)    A charter school entity may be subject to an annual
25   audit by the Auditor General, in addition to any other audits
26   required by Federal law or this act. A cyber charter school may
27   also be subject to an annual audit by the department or any
28   other entity granted authority to audit cyber charter schools.
29      * * *
30      Section 1722-A.   Facilities.--* * *

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 1      (f)   A school district, intermediate unit, community college
 2   and institution under Article XX-A shall provide a cyber charter
 3   school with reasonable access to facilities for the
 4   administration of standardized testing as follows:
 5      * * *
 6      (3)   A school district, intermediate unit, community college
 7   or institution may not be required to make facilities available
 8   to a cyber charter school on dates and at times that may cause
 9   undue interference with the educational programs or assessment
10   schedule of the school district, intermediate unit, community
11   college or institution.
12      (4)   [A] Any facilities rental fee charged to the cyber
13   charter school and the payment of the fee shall be in compliance
14   with the facility rental policy of the school district,
15   intermediate unit, community college or institution that applies
16   generally to all organizations and community groups given access
17   to facilities of the school district, intermediate unit,
18   community college or institution under a rental agreement.
19      (g)   Nothing in this section shall be construed to require a
20   school district, intermediate unit, community college or
21   institution to provide a cyber charter school with computers or
22   any other devices used by students for the administration of
23   standardized tests.
24      Section 5.   Section 1723-A(d)(1) of the act is amended and
25   the subsection is amended by adding a paragraph to read:
26      Section 1723-A.    Enrollment.--* * *
27      (d)   (1)   Enrollment of students in a charter school or cyber
28   charter school shall not be subject to a cap or otherwise
29   limited by any past or future action of a board of school
30   directors, a board of control established under Article XVII-B,

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 1   a special board of control established under section 692 or any
 2   other governing authority, unless agreed to by the charter
 3   school or cyber charter school as part of a written charter
 4   pursuant to section 1720-A or 1745-A.
 5      (1.1)   Notwithstanding paragraph (1), a cyber charter school
 6   that has been designated as a Comprehensive Support and
 7   Improvement school under the Every Student Succeeds Act (Public
 8   Law 114-95, 129 Stat. 1802) may not expand the cyber charter
 9   school's enrollment by more than ten per centum of the
10   enrollment reported by the cyber charter school on the date of
11   the cyber charter school's designation. The limitation under
12   this paragraph shall apply until the cyber charter school exits
13   the designation.
14      * * *
15      Section 6.   Section 1725-A(a) introductory paragraph of the
16   act is amended to read:
17      Section 1725-A.   Funding for Charter Schools.--(a)    [Funding]
18   Except as provided in section 1725.1-A, funding for a charter
19   school shall be provided in the following manner:
20      * * *
21      Section 7.   Section 1725.1-A(b) and (c) introductory
22   paragraph of the act, added July 11, 2024 (P.L.618, No.55), are
23   amended and the section is amended by adding subsections to
24   read:
25      Section 1725.1-A.   Funding for Cyber Charter Schools.--* * *
26      (b)   Notwithstanding section [1725-A(a)(3)] 1725-A(a)(2) and
27   (3), per-student funding amounts for special education students
28   attending a cyber charter school shall be calculated in
29   accordance with this section and shall be paid by the school
30   district of residence of each student.

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 1      (c)     [Effective January 1, 2025, and the entirety of each
 2   school year thereafter,] For the 2025-2026 school year, for
 3   special education students, a cyber charter school shall receive
 4   for each student enrolled the lesser of:
 5      * * *
 6      (e)     Beginning with the 2026-2027 school year, a cyber
 7   charter school shall be funded by a student's school district of
 8   residence based on the Statewide Cyber Charter School Tuition
 9   Rate.
10      (f)     For the 2026-2027, 2027-2028 and 2028-2029 school years,
11   the Statewide Cyber Charter School Tuition Rate for non-special
12   education students shall be eight thousand dollars ($8,000) per
13   student.
14      (g)     Beginning with the 2029-2030 school year and every three
15   (3) years thereafter, the department shall adjust the Statewide
16   Cyber Charter School Tuition Rate based on the average annual
17   property tax increase for all school districts during the
18   preceding three (3) years. The department shall develop
19   guidelines for calculating the adjustment under this subsection.
20      (h)     On or before April 30, 2029, and by April 30 of each
21   third year thereafter, the department shall calculate and post
22   on the department's publicly accessible Internet website the
23   updated Statewide Cyber Charter School Tuition Rate payable by a
24   student's school district of residence for the next three (3)
25   school years.
26      (i)     Beginning with the 2026-2027 school year, funding for
27   special education students enrolled in a cyber charter school
28   shall be determined as follows:
29      (1)     For each special education student, the cyber charter
30   school shall receive the Statewide Cyber Charter School Tuition

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 1   Rate multiplied by one and sixty-four hundredths (1.64).
 2      (2)    If the cyber charter school determines that the annual
 3   expenditure for providing special education services and
 4   programs to an enrolled special education student is likely to
 5   meet or exceed the expenditure threshold under section 1372(8)
 6   for Category 2, the cyber charter school may apply to the
 7   department for an increase in the Statewide Cyber Charter School
 8   Tuition Rate for the student.
 9      (3)    If the department determines that the annual expenditure
10   for providing special education services and programs to the
11   enrolled special education student is likely to meet or exceed
12   the expenditure threshold under section 1372(8) for Category 2,
13   the department shall direct the student's school district of
14   residence to pay the Statewide Cyber Charter School Tuition Rate
15   for the student adjusted as follows:
16      (i)    For a student enrolled in the cyber charter school for
17   which the annual expenditure is in Category 2, the Statewide
18   Cyber Charter School Tuition Rate multiplied by three and eight
19   hundredths (3.08).
20      (ii)    For a student enrolled in the cyber charter school for
21   which the annual expenditure is in Category 3, including
22   Categories 3A and 3B under section 1372(8), the Statewide Cyber
23   Charter School Tuition Rate multiplied by six and thirty-four
24   hundredths (6.34).
25      (j)    The department shall calculate and publicly post the
26   per-student amounts payable under subsection (i) on the
27   department's publicly accessible Internet website to be paid by
28   a student's school district of residence.
29      (k)    To receive funding under subsection (i)(2) and (3), a
30   cyber charter school must submit documentation to the department

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 1   demonstrating the likely annual expenditure for special
 2   education services and programs for the student in accordance
 3   with guidelines developed by the department.
 4      (l)   The department shall update the weighting factors under
 5   subsection (i) when the weights under section 2509.5(bbb)(2) for
 6   school districts are adjusted.
 7      (m)   The following shall apply:
 8      (1)   A payment under subsection (i)(3)(ii) may not exceed the
 9   actual annual expenditure of providing special education
10   services and programs to the student.
11      (2)   If a Category 3 student's actual expenditure for
12   providing special education services and programs is less than
13   the amount received under this section, the cyber charter school
14   shall refund the difference to the student's school district of
15   residence no later than August 1 of each year.
16      (n)   The following shall apply:
17      (1)   If a student voluntarily enrolls in a cyber charter
18   school, the student or the student's parent or guardian shall
19   pay tuition to the cyber charter school equal to the Statewide
20   Cyber Charter School Tuition Rate.
21      (2)   The payments under paragraph (1) shall be made in twelve
22   (12) equal monthly installments by the fifth day of each month
23   during the school year.
24      (3)   Except as provided in paragraph (4), the school district
25   of residence shall not be responsible for tuition payments for a
26   a student specified under paragraph (1), and the student shall
27   not be included in the average daily membership of the school
28   district of residence for the purpose of State funding under
29   Article XXV.
30      (4)   The requirements under this subsection shall not apply,

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 1   and the school district of residence shall be responsible for
 2   tuition payments for a student, if:
 3      (i)    the student was enrolled in a cyber charter school
 4   during the 2025-2026 school year; or
 5      (ii)    the student was enrolled in the school district of
 6   residence for at least one full school year prior to enrolling
 7   in the cyber charter school.
 8      Section 8.     Section 1741-A(a)(1), (2), (3) and (5), (b) and
 9   (c) of the act are amended and the section is amended by adding
10   a subsection to read:
11   Section 1741-A.     Powers and duties of department.
12      (a)    Powers and duties.--The department shall have the
13   following powers and duties:
14             (1)   Receive, review and act on applications for the
15      creation of a cyber charter school [and have], including, but
16      not limited to, the power to request further information from
17      applicants, obtain input from interested persons or entities
18      and hold public hearings regarding applications. The
19      department shall hold at least one public hearing prior to
20      granting or denying an application.
21             (2)   [Renew] Receive, review and act on applications to
22      amend and renew the charter of a cyber charter school. [and
23      renew the charter of a charter school approved under section
24      1717-A or 1718-A which provides instruction through the
25      Internet or other electronic means. Upon renewal of a charter
26      of a charter school approved under section 1717-A or 1718-A,
27      the charter school shall qualify as a cyber charter school
28      under this subdivision and shall be subject to the provisions
29      of this subdivision.]
30             (3)   Revoke or deny renewal of a cyber charter school's

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 1      charter under the provisions of section [1729-A] 1745.3-A.
 2                   [(i)    Notwithstanding the provisions of section 1729-
 3            A(i), when the department has revoked or denied renewal
 4            of a charter, the cyber charter school shall be
 5            dissolved. After the disposition of the liabilities and
 6            obligations of the cyber charter school, any remaining
 7            assets of the cyber charter school shall be given over to
 8            the intermediate unit in which the cyber charter school's
 9            administrative office was located for distribution to the
10            school districts in which the students enrolled in the
11            cyber charter school reside at the time of dissolution.
12                   (ii)    Notwithstanding any laws to the contrary, the
13            department may, after notice and hearing, take immediate
14            action to revoke a charter if:
15                          (A)   a material component of the student's
16                   education as required under this subdivision is not
17                   being provided; or
18                          (B)   the cyber charter school has failed to
19                   maintain the financial ability to provide services as
20                   required under this subdivision.]
21            * * *
22            [(5)    Develop forms, including the notification form
23      under section 1748-A(b), necessary to carry out the
24      provisions of this subdivision.]
25      (b)   Hearings.--[Hearings] Public hearings conducted by the
26   department shall be conducted under 65 Pa.C.S. Ch. 7 (relating
27   to open meetings).
28      (c)   Documents.--Documents of the appeal board shall be
29   subject to the act of [June 21, 1957 (P.L.390, No.212), referred
30   to as the Right-to-Know Law.] February 14, 2008 (P.L.6, No.3),

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 1   known as the Right-to-Know Law.
 2      (d)   Standard enrollment form.--
 3            (1)   The department shall develop a standard enrollment
 4      form, in both paper and electronic formats, which shall be
 5      used by an eligible applicant seeking to enroll in a cyber
 6      charter school. The enrollment form shall be limited to
 7      information necessary to identify the student, determine
 8      grade level and establish residency, including all of the
 9      following:
10                  (i)    The student's name, residential address,
11            resident school district, telephone number, date of
12            birth, current grade level and grade level to be entered.
13                  (ii)    The name, residential address and telephone
14            number or email address of the student's parent or
15            guardian.
16                  (iii)    The proposed date and grade level of
17            enrollment.
18                  (iv)    The name of the cyber charter school and the
19            contact information, including the name, telephone number
20            and email address, of an authorized representative of the
21            cyber charter school.
22                  (v)    The signatures of the student's parent or
23            guardian and an authorized representative of the cyber
24            charter school.
25            (2)   The standard enrollment form shall be made
26      physically available at each cyber charter school location,
27      in a manner that complies with Federal and State law, and
28      posted on the publicly accessible Internet website of the
29      cyber charter school. A cyber charter school may accept the
30      enrollment form via paper or electronic means.

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 1          (3)   The standard enrollment form shall be:
 2                (i)    physically available at each cyber charter
 3          school location in a format compliant with Federal and
 4          State law; and
 5                (ii)    posted on the cyber charter school's publicly
 6          accessible Internet website.
 7          (4)   A cyber charter school may not request or require
 8      additional information beyond what is contained in the
 9      standard enrollment form as developed by the department.
10          (5)   Nothing in this subsection shall be construed to
11      prevent a cyber charter school, after a student is accepted
12      for admission and has expressed intent to enroll, from
13      requesting records and information that public schools are
14      otherwise entitled to receive.
15      Section 9.      Section 1742-A(1) and (3) of the act are amended
16   and the section is amended by adding a paragraph to read:
17   Section 1742-A.      Assessment and evaluation.
18      The department shall:
19          (1)   Annually assess whether each cyber charter school is
20      meeting the goals of its charter and is in compliance with
21      the provisions of the [charter and conduct a comprehensive
22      review prior to granting a five-year renewal of the] charter.
23      The assessment may include, but shall not be limited to, an
24      examination of all of the following:
25                (i)    Academic performance.
26                (ii)    Financial management.
27                (iii)    Audit results.
28                (iv)    Governance and operation.
29                (v)    Compliance with Federal and State laws and
30          regulations.

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 1            * * *
 2            (3)   Have ongoing access to all records, systems,
 3      facilities, instructional materials and student and staff
 4      records of each cyber charter school [and to every cyber
 5      charter school facility to] and any related charter school
 6      foundation or educational management service provider to
 7      facilitate the annual and comprehensive reviews required
 8      under this subsection and to ensure the cyber charter school
 9      is in compliance with its charter and this [subdivision.]
10      article and that requirements for testing, civil rights and
11      student health and safety are being met.
12            (4)   Conduct a comprehensive review of each cyber charter
13      school prior to granting a charter renewal. The comprehensive
14      review may include, but shall not be limited to, an
15      examination of all of the following:
16                  (i)    Academic performance.
17                  (ii)    Financial management.
18                  (iii)    Audit results.
19                  (iv)    Governance and operation.
20                  (v)    Compliance with Federal and State laws and
21            regulations.
22      Section 10.        Section 1743-A(a), (b), (c), (d)(1) and (11),
23   (e), (f), (g) and (h) of the act are amended and the section is
24   amended by adding subsections to read:
25   Section 1743-A.        Cyber charter school requirements and
26                  prohibitions.
27      (a)   Special financial requirements prohibited.--A cyber
28   charter school shall not:
29            (1)   provide discounts to a school district or waive
30      payments under section [1725-A] 1725.1-A for any student;

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 1            (2)   [except as provided for in subsection (e),] provide
 2      payments or reimbursements to parents or guardians for the
 3      purchase of instructional materials[; or], for educational or
 4      field trips or for any other reason not expressly specified
 5      under subsection (e);
 6            (2.1)   offer or provide to parents, guardians or students
 7      cash, gifts or other incentives having more than a de minimis
 8      value for enrolling in, attending or considering enrollment
 9      or attendance in the cyber charter school; or
10            (3)   except as compensation for the provision of specific
11      services, enter into agreements to provide funds to a school
12      entity.
13      (b)   Enrollment.--A cyber charter school shall report to the
14   department an increase or a decrease of 30% or more in its
15   anticipated enrollment set forth in the application under
16   section [1747-A(11)] 1747-A(3).
17      (c)   School district.--A cyber charter school shall make
18   available upon request, either in writing or electronically, to
19   each student's school district of residence the following:
20            (1)   A copy of the charter.
21            (2)   A copy of the cyber charter school application.
22            (3)   A copy of all annual reports prepared by the cyber
23      charter school under this article.
24            (4)   A list of all students from that school district
25      enrolled in the cyber charter school.
26            (5)   Information required under section 1725.1-A.
27      (d)   Parent or guardian.--Upon request and prior to the
28   student's first day in a cyber charter school, the cyber charter
29   school shall, either in writing or electronically, provide to
30   the parent or guardian of a student the following:

20250HB1372PN1568                    - 17 -
 1            (1)    A current list and brief description of the courses
 2      of instruction the student will receive. The list shall be
 3      updated annually for each grade level in which the student is
 4      enrolled.
 5            * * *
 6            (11)    Information on:
 7                   (i)    The cyber charter school's professional staff,
 8            including the number of staff personnel, their education
 9            level and experience.
10                   (ii)    The cyber charter school's performance on the
11            PSSA and other standardized test scores.
12                   (iii)    The cyber charter school's graduation rate, if
13            applicable.
14                   (iv)    The cyber charter school's designation as a
15            Comprehensive Support and Improvement school, Targeted
16            Support and Improvement school or an Additional Targeted
17            Support and Improvement school under the Every Student
18            Succeeds Act (Public Law 114-95, 129 Stat. 1802) along
19            with a description of the designation, if applicable.
20            * * *
21      (e)   Students.--For each student enrolled, a cyber charter
22   school shall:
23            (1)    provide all instructional materials, which may
24      include electronic or digital books in place of paper books;
25            (2)    provide all equipment, including, but not limited
26      to, a computer, computer monitor and printer, unless the
27      parent or guardian of an enrolled child elects not to receive
28      a computer, computer monitor or printer; and
29            (3)    provide or reimburse for [all] technology and
30      services necessary for the [on-line] online delivery of the

20250HB1372PN1568                        - 18 -
 1      curriculum and instruction. The department shall establish a
 2      maximum allowable reimbursement rate for the technology and
 3      services required under this paragraph.
 4      (e.1)   Liability.--The Commonwealth and school district of
 5   residence shall not be liable for any reimbursement owed to
 6   students, parents or guardians by a cyber charter school under
 7   [paragraph (3)] subsection (e)(3).
 8      (f)   Annual report.--A cyber charter school shall submit an
 9   annual report no later than August 1 of each year to the
10   department and all local boards of school directors that have a
11   student enrolled in the cyber charter school in the form
12   prescribed by the department. The following shall apply to the
13   annual report:
14            (1)   The annual report shall include, but not be limited
15      to, the number of students who enroll in the cyber charter
16      school and the number of those students who are identified by
17      the cyber charter school as needing special education as well
18      as the level of services being provided to the student.
19            (2)   A copy of the annual report, including all exhibits
20      and attachments to the annual report, shall also be
21      maintained at each facility of the cyber charter school and
22      be made available for public inspection and copying and shall
23      be posted on the cyber charter school's publicly accessible
24      Internet website.
25      (g)   [Records and facilities.--A cyber charter school shall
26   provide the department with ongoing access to all records and
27   facilities necessary for the department to assess the cyber
28   charter school in accordance with the provisions of this
29   subdivision.] Employee evaluations.--A cyber charter school
30   shall use the revised rating system under subarticle (c.1) of

20250HB1372PN1568                    - 19 -
 1   Article XI to evaluate principals or school leaders, classroom
 2   teachers and nonteaching professional employees.
 3      (h)    Offices and facilities.--A cyber charter school shall
 4   maintain an administrative office within this Commonwealth where
 5   all student records shall be maintained at all times and shall
 6   provide the department with the addresses of all offices and
 7   facilities of the cyber charter school, the ownership thereof
 8   and any lease arrangements. The administrative office of the
 9   cyber charter school shall be considered as the principal place
10   of business for service of process for any action brought
11   against the cyber charter school or cyber charter school staff
12   members. The cyber charter school shall notify the department of
13   any changes in this information within [ten] 10 days of the
14   change.
15      * * *
16      (j)    Educational agreements.--A cyber charter school may
17   enter into agreements with school districts or any other public
18   or private schools located in this Commonwealth for the
19   provision of programs, courses or other educational services.
20      (k)    Budget.--
21             (1)   By June 30 each year, a cyber charter school shall
22      annually adopt and submit to the department and each school
23      district which has a student enrolled with a copy of the
24      cyber charter school's annual budget on a form developed by
25      the department. For the purpose of this paragraph, a cyber
26      charter school shall provide no more information than
27      provided by a school district under section 687.
28             (2)   The cyber charter school shall print or otherwise
29      make available for public inspection a copy of the cyber
30      charter school's proposed annual budget at least 20 days

20250HB1372PN1568                     - 20 -
 1      prior to the adoption of the final budget. The cyber charter
 2      school shall also post a copy of the cyber charter school's
 3      proposed annual budget on its publicly accessible Internet
 4      website.
 5            (3)   On the date of adoption of the proposed annual
 6      budget required under this subsection, the president or chair
 7      of the cyber charter school's board of trustees shall certify
 8      to the department that the proposed budget has been prepared,
 9      presented and made available for public inspection using a
10      form developed by the department. The certification under
11      this paragraph shall be in a manner required by the
12      department. Final action shall not be taken on a proposed
13      annual budget that has not been prepared, presented and made
14      available for public inspection using a form developed by the
15      department.
16            (4)   The annual budget adopted and submitted under this
17      subsection shall not exceed the amount of funds available to
18      the cyber charter school.
19      (l)     Accessibility.--A cyber charter school or affiliated
20   charter school foundation shall make copies of the following
21   available upon request and on the cyber charter school's or
22   charter school foundation's publicly accessible Internet
23   website:
24            (1)   Annual budgets for the cyber charter school, as
25      specified under subsection (k), and the charter school
26      foundation for the most recent five school years, as
27      available. A charter school foundation shall include in its
28      annual budget the salaries of all employees of the charter
29      school foundation.
30            (2)   Annual Federal and State tax filings, including

20250HB1372PN1568                    - 21 -
 1      Internal Revenue Service Form 990, Return of Organization
 2      Exempt from Income Tax and all related schedules and
 3      appendices for the cyber charter school and charter school
 4      foundation for the previous five school years.
 5            (3)   Certified audits under section 1716-A(f) and each
 6      Federal and State audit under section 1716-A(h) for the cyber
 7      charter school and the charter school foundation for the
 8      previous five school years, as available.
 9            (4)   Annual reports filed by the cyber charter school
10      under subsection (f) for the previous five school years, as
11      available.
12      Section 11.    The act is amended by adding sections to read:
13   Section 1743.1-A.    Fund balance limits.
14      (a)   Limitation.--For the 2025-2026 school year and each
15   school year thereafter, a cyber charter school may not
16   accumulate an unassigned fund balance that exceeds the
17   following:
18                                                  Estimated Ending
19                                               Unassigned Fund Balance
20              Cyber Charter School             as Percentage of Total
21        Total Budgeted Expenditures            Budgeted Expenditures
22   Less Than or Equal to $11,999,999                      12%
23   Between $12,000,000 and $12,999,999                  11.5%
24   Between $13,000,000 and $13,999,999                    11%
25   Between $14,000,000 and $14,999,999                  10.5%
26   Between $15,000,000 and $15,999,999                    10%
27   Between $16,000,000 and $16,999,999                   9.5%
28   Between $17,000,000 and $17,999,999                     9%
29   Between $18,000,000 and $18,999,999                   8.5%
30   Greater Than or Equal to $19,000,000                    8%

20250HB1372PN1568                    - 22 -
 1      (b)   Refund.--An unassigned fund balance in place on June 30,
 2   2025, and on June 30 of each year thereafter, in excess of the
 3   fund balance limit established under subsection (a) shall be
 4   refunded on a pro rata basis within 90 days to each school
 5   district that paid tuition to the cyber charter school in the
 6   prior school year, based upon the number of students for whom
 7   each school district paid tuition to the cyber charter school
 8   multiplied by the Statewide Cyber Charter School Tuition Rate
 9   under section 1725.1-A.
10      (c)   Information.--By October 31, 2025, and by October 31 of
11   each year thereafter, a cyber charter school shall provide the
12   department and each school district that paid tuition to the
13   cyber charter school in the prior school year with information
14   certifying compliance with this section. The information shall
15   be provided in a form and manner determined by the department
16   and shall include information on the cyber charter school's
17   estimated ending unassigned fund balance expressed as a dollar
18   amount and as a percentage of the cyber charter school's total
19   budgeted expenditures for that school year.
20      (d)   Prohibition.--Unassigned funds of the cyber charter
21   school in excess of the unassigned fund balance may not be used
22   to pay bonuses to an administrator, a member of the board of
23   trustees, an employee, a staff member or a contractor and may
24   not be transferred to a charter school foundation. If a cyber
25   charter school uses funds in excess of the unassigned fund
26   balance limit in violation of this subsection, the value of the
27   bonus payment or fund transfer shall be refunded on a pro rata
28   basis to each school district that paid tuition to the cyber
29   charter school in the prior school year, based upon the number
30   of students for whom each school district paid tuition to the

20250HB1372PN1568                  - 23 -
 1   cyber charter school multiplied by the Statewide Cyber Charter
 2   School Tuition Rate under section 1725.1-A.
 3      (e)   Definition.--As used in this section, the term
 4   "unassigned fund balance" means that portion of the fund balance
 5   of a cyber charter school that is appropriable for expenditure
 6   or not legally or otherwise segregated for a specific or
 7   tentative future use, projected for the close of the school year
 8   for which the cyber charter school's budget was adopted and held
 9   in the General Fund accounts of the cyber charter school.
10   Section 1743.2-A.     Educational management service providers.
11      (a)   Service providers.--An educational management service
12   provider that provides a service to a cyber charter school
13   shall:
14            (1)   be considered a local agency for the purpose of the
15      act of February 14, 2008 (P.L.6, No.3), known as the Right-
16      to-Know Law; and
17            (2)   maintain a publicly accessible Internet website
18      detailing the salaries and other compensation and titles of
19      the educational management service provider's employees,
20      officers and directors.
21      (b)   Employees.--An employee of an educational management
22   service provider that provides a service to a cyber charter
23   school shall be considered a public employee for the purpose of
24   65 Pa.C.S. Ch. 11 (relating to ethics standards and financial
25   disclosure).
26      Section 12.     Sections 1744-A(1) and (4) and 1745-A(c), (e),
27   (f)(1)(v) and (2) and (h) of the act are amended to read:
28   Section 1744-A.     School district and intermediate unit
29                  responsibilities.
30      An intermediate unit or a school district in which a student

20250HB1372PN1568                       - 24 -
 1   enrolled in a cyber charter school resides shall do all of the
 2   following:
 3            (1)   Provide the cyber charter school within [ten] 10
 4      days of receipt of the notice of the admission of the student
 5      under section 1748-A(a) with all records relating to the
 6      student, including transcripts, test scores and a copy of any
 7      individualized education program for that student.
 8            * * *
 9            (4)   Make payments to the cyber charter school under
10      section [1725-A] 1725.1-A.
11   Section 1745-A.      Establishment of cyber charter school.
12      * * *
13      (c)   Attendance.--
14            (1)     Attendance at a cyber charter school shall satisfy
15      requirements for compulsory attendance.
16            (2)   On a form developed by the department and beginning
17      in the 2025-2026 school year, a cyber charter school shall
18      report, on a weekly basis, the attendance of each student for
19      the preceding week to the school district of residence.
20      * * *
21      (e)   Grant or denial.--Within 120 days of receipt of an
22   application, the department shall grant or deny the application.
23   The department shall review the application and shall hold at
24   least one public hearing [under 65 Pa.C.S. Ch. 7 (relating to
25   open meetings)]. At least 30 days prior to the hearing, the
26   department shall publish in the Pennsylvania Bulletin and on the
27   department's [World Wide Web site] publicly accessible Internet
28   website notice of the hearing and the purpose of the
29   application.
30      (f)   Evaluation criteria.--

20250HB1372PN1568                      - 25 -
 1            (1)   A cyber charter school application submitted under
 2      this subdivision shall be evaluated by the department based
 3      on the following criteria:
 4                  * * *
 5                  (v)   The extent to which the cyber charter school may
 6            serve as a model for other public schools, including
 7            other cyber charter schools.
 8            (2)   Written notice of the action of the department shall
 9      be sent by certified mail to the applicant and published on
10      the department's [World Wide Web site] publicly accessible
11      Internet website. If the application is denied, the reasons
12      for denial, including a description of deficiencies in the
13      application, shall be clearly stated in the notice.
14            * * *
15      (h)   Appeal.--If the department fails to hold the required
16   public hearing or [to approve or disapprove] denies the
17   [charter] application, the applicant may file its application as
18   an appeal to the appeal board in accordance with section 1746-A.
19   The appeal board shall provide notice of the appeal to the
20   department and may allow the department to be heard on the
21   application. If the department fails to respond within 30 days,
22   the appeal board shall review the application and make a
23   decision to approve or disapprove the charter based on the
24   criteria in subsection (f). The applicant must file an appeal no
25   later than 30 days following the date by which the department
26   was required to act on the application in accordance with
27   subsection (e) or (g), as applicable, or the date of mailing of
28   the written notice issued under subsection (f)(2).
29      Section 13.       The act is amended by adding sections to read:
30   Section 1745.1-A.      Renewal of charters.

20250HB1372PN1568                      - 26 -
 1      (a)   Submission.--A cyber charter school shall submit a
 2   renewal application as provided under section 1747-A(d) to the
 3   department by October 1 of the final year of the charter term.
 4      (b)   Action.--The department shall act to renew or not renew
 5   a charter no later than 120 days after receipt of a complete
 6   renewal application. The department may, in its sole discretion,
 7   hold a public hearing to discuss the renewal.
 8      (c)   Extension.--A renewal of a charter shall obligate the
 9   department to extend the charter in accordance with section
10   1745-A(f)(3).
11      (d)   Appeals.--Unless otherwise provided in this article, a
12   cyber charter school that appeals a nonrenewal may continue
13   operating under the terms and conditions of the most recent
14   charter pending the decision of the appeal board.
15   Section 1745.2-A.   Charter amendments.
16      (a)   Filing.--Subject to subsections (b) and (c), a cyber
17   charter school may request amendments to its charter by filing
18   an amendment application describing the requested amendment with
19   the department no later than October 15 of the school year prior
20   to the school year in which the amendment would take effect.
21   Approval from the department shall be required only for a change
22   to a material term of a written charter.
23      (b)   Emergencies.--Notwithstanding the notice requirements of
24   subsection (a), in the event of an emergency, a cyber charter
25   school shall immediately notify the department of the necessity
26   for an emergency amendment, which shall take effect immediately
27   as a temporary amendment pending completion of the processes
28   specified under this section.
29      (c)   Deadline.--A cyber charter school may not seek an
30   amendment during the first year of the charter term. A cyber

20250HB1372PN1568                    - 27 -
 1   charter school seeking an amendment during the final year of the
 2   charter term shall submit the amendment application along with
 3   the renewal application under section 1745.1-A.
 4      (d)   Form.--The department shall create a model amendment
 5   application form for a cyber charter school seeking to amend its
 6   approved written charter agreement. The department shall
 7   transmit the form to the Legislative Reference Bureau for
 8   publication in the next available issue of the Pennsylvania
 9   Bulletin and post the form on the department's publicly
10   accessible Internet website. The following shall apply:
11            (1)   The model amendment application shall include the
12      following information:
13                  (i)    The name of the cyber charter school.
14                  (ii)    The name and contact information for the chief
15            administrator and the president or chairperson of the
16            board of trustees.
17                  (iii)    The physical location of the cyber charter
18            school, the ownership of the cyber charter school and any
19            lease arrangements.
20                  (iv)    The proposed amendments to the approved written
21            charter agreement and the reasons for the amendments.
22                  (v)    Evidence of the vote by the board of trustees
23            approving submission of the amendment request.
24            (2)   The department shall review the model amendment
25      application form at least every three years, with stakeholder
26      input, and shall revise the form as necessary.
27      (e)   Supplements.--Nothing in this section shall be construed
28   to prevent the department from supplementing the model
29   application form or requiring additional information necessary
30   to evaluate the application in accordance with this act.

20250HB1372PN1568                       - 28 -
 1      (f)   Posting.--The department shall post the model amendment
 2   form on the department's publicly accessible Internet website no
 3   later than August 1, 2025.
 4      (g)   Use.--A charter school entity shall use the model
 5   application form beginning in the 2025-2026 school year.
 6      (h)   Hearing.--Within 60 days of receipt by the department of
 7   a charter amendment application, the department shall hold a
 8   public hearing on the proposed charter amendment.
 9      (i)   Action.--Within 180 days of the receipt by the
10   department of the charter amendment request, the department
11   shall grant or deny the request. The department shall provide
12   written notice of the department's determination to the cyber
13   charter school.
14      (j)   Approval.--If the amendment request is granted by the
15   department under subsection (i), the cyber charter school's
16   written charter shall be supplemented or amended, as
17   appropriate, to contain the provisions of the amendment request
18   and signed by the department and the president or chairperson of
19   the cyber charter school's board of trustees. The amended
20   charter, when signed as required under this subsection, shall
21   constitute legal authorization for continued operation under the
22   amended terms for the remainder of the charter term.
23      (k)   Denial.--If the amendment request is denied by the
24   department under subsection (i), the department shall clearly
25   state the reasons for the denial, including any deficiencies, in
26   the written notice sent by the department to the cyber charter
27   school. The cyber charter school may appeal the denial to the
28   appeal board in accordance with section 1746-A. A denial shall
29   not preclude future resubmission of the amendment request by the
30   cyber charter school to address the deficiencies identified by

20250HB1372PN1568                  - 29 -
 1   the department in its written notice denying the amendment
 2   request.
 3      (l)     Request at renewal.--Notwithstanding subsection (a), a
 4   cyber charter school may request an amendment to its charter at
 5   the time of renewal. Charter amendment requests made at the time
 6   of renewal shall be considered distinct requests subject to
 7   independent approval or denial by the department in accordance
 8   with this section.
 9      (m)     Definitions.--As used in this section, the term "change
10   to a material term" means any of the following:
11            (1)   A change to the name of the cyber charter school.
12            (2)   A change in building location or addition of a new
13      facility.
14            (3)   A change in educational management service provider.
15            (4)   A change to curriculum provider.
16            (5)   A change to mission or educational goals of the
17      cyber charter school.
18            (6)   A change to grade levels served other than those
19      included in the approved charter application even if those
20      grades are not currently implemented.
21            (7)   Expansion of enrollment based on the maximum
22      authorized enrollment for the term of the charter.
23   Section 1745.3-A.     Causes for nonrenewal, revocation or
24                  termination.
25      (a)     Revocation or nonrenewal.--During the term of a charter
26   or at the end of the term of the charter, the department may
27   choose to revoke or not to renew the charter based on any of the
28   following:
29            (1)   A material violation of a condition, standard or
30      procedure contained in the written charter signed under

20250HB1372PN1568                    - 30 -
 1    section 1745-A.
 2        (2)    Failure to meet the requirements for student
 3    performance specified in 22 Pa. Code Ch. 4 (relating to
 4    academic standards and assessment).
 5        (3)    Failure to meet any performance targets specified in
 6    the written charter signed under section 1745-A.
 7        (4)    Designation by the department as a Comprehensive
 8    Support and Improvement school at least two times under the
 9    Every Student Succeeds Act (Public Law 114-95, 129 Stat.
10    1802).
11        (5)    Failure to meet generally accepted standards of
12    fiscal management or audit requirements.
13        (6)    Violation of a provision of this article.
14        (7)    Violation of a provision of law from which the
15    charter school has not been exempted, including a Federal law
16    or regulation governing children with disabilities.
17        (8)    The cyber charter school has been convicted of or
18    entered a plea of guilty or nolo contendere to a charge
19    involving fraud.
20        (9)    Failure of the cyber charter school or an
21    administrator or member of the board of trustees of the cyber
22    charter school to comply with any of the following:
23               (i)    65 Pa.C.S. Ch. 7 (relating to open meetings).
24               (ii)    65 Pa.C.S. Ch. 11 (relating to ethics standards
25        and financial disclosure) or any other conflict of
26        interest prohibition in this article.
27               (iii)    The act of February 14, 2008 (P.L.6, No.3),
28        known as the Right-to-Know Law.
29        (10)    Failure to timely comply with auditing requirements
30    from which the cyber charter school has not been exempted.

20250HB1372PN1568                    - 31 -
 1          (11)   Failure to timely comply with reporting
 2    requirements from which the charter school has not been
 3    exempted, including the submission of an annual budget
 4    required by section 1743-A(k), an annual financial report
 5    required by section 218 and the annual report required by
 6    section 1743-A(f).
 7          (12)   Failure to provide ongoing access to the records
 8    and facilities of the cyber charter school as required by
 9    section 1742-A(3).
10          (13)   A reason to revoke or not renew the charter as
11    specified in regulations promulgated by the department.
12    (b)   Notice and hearings.--
13          (1)    The department shall provide a notice of revocation
14    or nonrenewal of a charter in writing to a cyber charter
15    school, state the grounds for the action with reasonable
16    specificity and give reasonable notice to the board of
17    trustees of the cyber charter school of the date on which a
18    public hearing concerning the revocation or nonrenewal will
19    be held.
20          (2)    The department shall conduct the public hearing
21    under paragraph (1), present evidence in support of the
22    grounds for revocation or nonrenewal stated in the notice of
23    revocation or nonrenewal and provide the cyber charter school
24    reasonable opportunity to offer testimony before taking final
25    action.
26          (3)    The department shall take formal action revoking or
27    not renewing a charter at the public meeting under paragraph
28    (1) in accordance with 65 Pa.C.S. Ch. 7 after the public has
29    a 30-day period to provide comments to the board of trustees
30    of the cyber charter school.

20250HB1372PN1568                   - 32 -
 1            (4)   No later than 60 days after the public meeting under
 2      paragraph (1) in which a formal action is taken by the
 3      department under paragraph (3), the department shall provide
 4      written notice of the department's determination to revoke or
 5      not renew the charter to the cyber charter school.
 6            (5)   Proceedings of the department under this subsection
 7      shall be subject to 2 Pa.C.S. Ch. 5 Subch. A (relating to
 8      practice and procedure of Commonwealth agencies). Except as
 9      provided in subsection (c), the determination of the
10      department to revoke or not renew the charter shall not be
11      subject to 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial
12      review of Commonwealth agency action).
13      (c)   Appeals.--A cyber charter school may appeal the
14   determination of the department to revoke or not renew the
15   charter under subsection (b) to the appeal board. The cyber
16   charter school mu

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