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.

PRINTER'S NO.   1795

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1500
                                               Session of
                                                 2025

     INTRODUCED BY ISAACSON, SCHWEYER, CURRY, FRIEL, O'MARA, OTTEN,
        PROBST, PROKOPIAK, SMITH-WADE-EL, BOROWSKI, BRENNAN,
        T. DAVIS, DELLOSO, DONAHUE, FLEMING, GUENST, HADDOCK,
        HANBIDGE, HILL-EVANS, HOHENSTEIN, INGLIS, KRUEGER, McNEILL,
        PIELLI, RIVERA, SANCHEZ, SCHLOSSBERG, SHUSTERMAN, STEELE AND
        VENKAT, MAY 30, 2025

     REFERRED TO COMMITTEE ON EDUCATION, MAY 30, 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, providing
 6      for Cyber Charter School Funding and Policy Council and
 7      further providing for advertising and sponsorships; in pupils
 8      and attendance, further providing for exceptional children
 9      and education and training; in charter schools, further
10      providing for definitions, for funding for cyber charter
11      schools, for powers and duties of department and for
12      assessment and evaluation, providing for fund balance limits,
13      further providing for cyber charter school requirements and
14      prohibitions, providing for cyber charter school fund balance
15      accountability, further providing for establishment of cyber
16      charter school, for cyber charter school application, for
17      enrollment and notification, for enrollee wellness checks and
18      for applicability of other provisions of this act and of
19      other acts and regulations and providing for cyber charter
20      school moratorium; and, in reimbursements by Commonwealth and
21      between school districts, further providing for extraordinary
22      special education program expenses.
23      The General Assembly of the Commonwealth of Pennsylvania
24   hereby enacts as follows:
25      Section 1.    The act of March 10, 1949 (P.L.30, No.14), known
26   as the Public School Code of 1949, is amended by adding a
 1   section to read:
 2      Section 123.2.     Cyber Charter School Funding and Policy
 3   Council.--(a)   There is established a Cyber Charter School
 4   Funding and Policy Council.
 5      (b)    The council shall have the following powers and duties:
 6      (1)    Develop recommendations related to how cyber charter
 7   schools are funded, including process, amounts and restrictions.
 8      (2)    Develop recommendations for policies impacting cyber
 9   charter schools, including:
10      (i)    Establishment.
11      (ii)    Application.
12      (iii)    Terms and form of written charters.
13      (iv)    Governance and management.
14      (v)    Assessment and evaluation.
15      (vi)    Enrollment and notification.
16      (vii)    Student attendance and wellness, including the
17   delivery of services to a student with disabilities.
18      (viii)    Renewal, revocation or denial of a charter.
19      (ix)    Administering standardized testing.
20      (x)    Offices and facilities.
21      (xi)    Telework for employees.
22      (xii)    Public transparency.
23      (xiii)    Other policies related to cyber charter schools in
24   this Commonwealth.
25      (3)    Recommend standards for truancy and attendance policies
26   for cyber charter schools.
27      (4)    Hold public hearings and receive input from experts and
28   interested parties.
29      (5)    No later than April 1, 2026, transmit the
30   recommendations to the Governor, the Secretary of Education and

20250HB1500PN1795                    - 2 -
 1   the General Assembly.
 2      (c)   The goals of the council in developing its
 3   recommendations shall be:
 4      (1)   Providing budget predictability for school districts,
 5   cyber charter schools and the Commonwealth.
 6      (2)   Using a transparent, data-driven approach.
 7      (3)   Improving collaboration between public schools.
 8      (4)   Providing accountability for meeting measurable academic
 9   standards.
10      (d)   The council shall consist of the following members:
11      (1)   One (1) legislator from each of the four (4) legislative
12   caucuses, to be appointed by the President pro tempore of the
13   Senate and the Speaker of the House of Representatives, in
14   consultation with the Majority Leader and Minority Leader of the
15   Senate and the Majority Leader and Minority Leader of the House
16   of Representatives.
17      (2)   The Secretary of Education or a designee.
18      (3)   The Deputy Secretary of Elementary and Secondary
19   Education or a designee.
20      (e)   A majority vote of the members of the council shall be
21   required for all actions taken by the council.
22      (f)   The council shall appoint a member to serve as
23   chairperson.
24      (g)   The council shall hold meetings at the call of the
25   chair. The council shall hold its first meeting within forty-
26   five (45) days of the effective date of this section.
27      (h)   The members may not receive compensation for their
28   services but shall be reimbursed for all necessary travel and
29   other reasonable expenses incurred in connection with the
30   performance of their duties as members of the council.

20250HB1500PN1795                  - 3 -
 1      (i)   The General Assembly shall provide administrative
 2   support, meeting space and any other assistance required by the
 3   council to carry out its duties under this section in
 4   cooperation with the department. The department shall provide
 5   the council with data, research and other information upon
 6   request by the council.
 7      (j)   The cyber charter school funding and policy
 8   recommendations developed by the council shall not go into
 9   effect unless approved by an act of the General Assembly enacted
10   after the effective date of this subsection.
11      (k)   As used in this section, the following words and phrases
12   shall have the meanings given to them in this subsection unless
13   the context clearly indicates otherwise:
14      "Council."   The Cyber Charter School Funding and Policy
15   Council established under this section.
16      "Department."    The Department of Education of the
17   Commonwealth.
18      Section 2.   Section 134(b) of the act, added July 11, 2024
19   (P.L.618, No.55), is amended to read:
20      Section 134.    Advertising and Sponsorships.--* * *
21      (b)   [No later than August 1, 2025, each] As part of the
22   annual financial reporting submitted under section 218, each
23   public school entity shall report to the Department of Education
24   the entity's total expenditures for paid media advertisements
25   and sponsorships of public events [for the 2024-2025 school
26   year]. The department shall compile the results of the reports
27   and make the results available on the Department of Education's
28   publicly accessible Internet website [by December 1, 2025].
29      * * *
30      Section 3.   Section 1372(8) of the act is amended by adding a

20250HB1500PN1795                   - 4 -
 1   subclause to read:
 2      Section 1372.     Exceptional Children; Education and
 3   Training.--* * *
 4      (8)    Reporting of Expenditures Relating to Exceptional
 5   Students.
 6      * * *
 7      (vi)     For purposes of reporting expenditures under this
 8   section and for calculating the costs for educating a special
 9   education student, costs shall be in accordance with Department
10   of Education guidance and shall include the following:
11      (A)    Eligible instruction costs per special education student
12   when specified in the student's individualized education plan
13   shall include:
14      (I)    Prorated salary and benefits for a classroom special
15   education teacher.
16      (II)     Prorated salary and benefits for a classroom aide, if
17   the aide is assigned to a group of students.
18      (III)     Total cost of salary and benefits if a
19   paraprofessional or one-on-one aide is assigned to the student.
20      (B)    Eligible related services costs per special education
21   student when specified in the student's individualized education
22   plan shall include:
23      (I)    Prorated transportation cost if the vehicle is
24   transporting multiple students at one time.
25      (II)     Total transportation cost if the vehicle is
26   transporting only the student receiving services.
27      (III)     Prorated cost of speech and language services if
28   services are provided to a group of students.
29      (IV)     Total cost of speech and language services if services
30   are provided to the student receiving services.

20250HB1500PN1795                    - 5 -
 1      (V)     Total cost of individual services, including
 2   occupational therapy, physical therapy, vision services, hearing
 3   services, orientation and mobility and related services.
 4      (VI)     Prorated cost of school nursing services if services
 5   are provided to a group of students.
 6      (VII)     Total cost of a one-on-one nurse if the nurse is
 7   assigned to a student receiving services.
 8      (C)     Eligible specialized equipment costs per special
 9   education student when specified in the student's individualized
10   education plan shall include:
11      (I)     Total cost of braille materials for the student
12   receiving services.
13      (II)     Total cost of assistive technology for the student
14   receiving services.
15      (III)     Total cost of other equipment for the student
16   receiving services.
17      (D)     Ineligible costs that may not be used in the calculation
18   include:
19      (I)     Administrative costs.
20      (II)     Nonspecialized transportation costs.
21      (III)     General education costs, which are not applicable to
22   special education services.
23      Section 4.     Section 1703-A of the act is amended by adding
24   definitions to read:
25      Section 1703-A.     Definitions.--The following words and
26   phrases when used in this article shall have the meanings given
27   to them in this section unless the context clearly indicates
28   otherwise:
29      * * *
30      "Comprehensive support and improvement" shall mean a

20250HB1500PN1795                       - 6 -
 1   designation under 20 U.S.C. § 6311 (relating to State plans) for
 2   schools that face the most significant challenges related to
 3   academic achievement, student growth, graduation rate and other
 4   areas.
 5      * * *
 6      "Low-achieving school" shall mean a public school that ranked
 7   in the lowest fifteen per centum of the school's designation as
 8   an elementary school or a secondary school based on combined
 9   mathematics and reading scores from the annual assessment
10   administered in the previous school year.
11      * * *
12      "Statewide cyber charter school tuition rate" shall mean the
13   base amount as calculated under section 1725.1-A(e) and (f).
14      Section 5.   Section 1725.1-A(c) introductory paragraph of the
15   act, added July 11, 2024 (P.L.618, No.55), is amended and the
16   section is amended by adding subsections to read:
17      Section 1725.1-A.   Funding for Cyber Charter Schools.--* * *
18      (c)   Effective January 1, 2025, [and the entirety of each
19   school year thereafter] through the 2024-2025 school year, for
20   special education students, a cyber charter school shall receive
21   for each student enrolled the lesser of:
22      * * *
23      (e)   Notwithstanding section 1725-A(a)(2), for non-special
24   education students for the 2025-2026 school year, the cyber
25   charter school shall receive the Statewide cyber charter school
26   tuition rate of eight thousand dollars ($8,000).
27      (f)   Notwithstanding section 1725-A(a)(2), for non-special
28   education students beginning in the 2026-2027 school year and
29   every school year thereafter, the cyber charter school shall
30   receive the Statewide cyber charter school tuition rate under

20250HB1500PN1795                  - 7 -
 1   subsection (e) adjusted in accordance with the following:
 2      (1)    The lesser of:
 3      (i)    the average annual percentage change in real estate tax
 4   collection for all school districts for the most recent year as
 5   reported on the annual financial report submitted in accordance
 6   with section 218 and fixed as of the first day of June preceding
 7   the school year for which the calculation applies; or
 8      (ii)    the average of the most recent percentage increase in
 9   the Statewide average weekly wage and the employment cost index
10   as defined in section 301 of the act of June 27, 2006 (1st
11   Sp.Sess., P.L.1873, No.1), known as the "Taxpayer Relief Act."
12      (2)    If the average change under clause (1) is less than zero
13   (0), there shall be no change in the Statewide cyber charter
14   school tuition rate.
15      (g)    Beginning in the 2025-2026 school year and each school
16   year thereafter, for special education students, a cyber charter
17   school shall receive for each student with a current
18   individualized education plan enrolled in the cyber charter
19   school the same funding as each non-special education student as
20   provided under subsections (e) and (f), plus an additional
21   amount in accordance with the following:
22      (1)    For each special education student enrolled in the cyber
23   charter school for which the annual expenditures for providing
24   special education specific services and programs as reported by
25   the cyber charter school under section 1372(8) fall within the
26   amounts for Category 1, 2 or 3 as specified in section 1372(8),
27   multiply the Statewide cyber charter school tuition rate by the
28   corresponding multiplier specified in section 2509.5(bbb)(2)
29   (i.1)(A), (B) or (C) or the most recently enacted statute
30   specifying the multiplier for Category 1, 2 or 3 students. For

20250HB1500PN1795                   - 8 -
 1   purposes of this clause, Category 1 shall include students in
 2   Categories 1A and 1B and Category 3 shall include students in
 3   Categories 3A and 3B under section 1372(8).
 4      (2)     For each special education student enrolled in the cyber
 5   charter school, the cyber charter school shall, for purposes of
 6   calculating the charter school tuition rate under clause (1),
 7   use the multiplier corresponding with the section 1372(8)
 8   category under which the student was reported for the prior
 9   school year. For each newly identified special education student
10   enrolled in the cyber charter school, the cyber charter school
11   shall, for purposes of calculating the charter school tuition
12   rate under clause (1), use the multiplier corresponding with
13   Category 1.
14      (3)     At the end of each school year, a cyber charter school
15   shall analyze the cyber charter school's actual expenditures for
16   the provision of special education services and programs to each
17   student in the prior school year. If the analysis shows that a
18   student should have been placed in a different tuition rate
19   category than was used to invoice the resident school district
20   under clause (2), the cyber charter school shall place the
21   student in the appropriate tuition rate category as part of the
22   final documentation of payment to be made under section 1725-
23   a(a)(5).
24      (4)     The department shall periodically review and monitor a
25   cyber charter school's tuition rate category determinations to
26   ensure compliance with this section and section 1372(8)(vi).
27      (5)     Failure to comply with this subsection shall be grounds
28   for nonrenewal or revocation of a charter under section 1729-A.
29      (h)     If a cyber charter school incurs extraordinary expenses
30   in providing a special education program or service to one or

20250HB1500PN1795                    - 9 -
 1   more students with disabilities, the cyber charter school may
 2   apply to the Secretary of Education for money in accordance with
 3   section 2509.8.
 4      Section 6.     Section 1741-A(a)(1), (2) and (5) of the act are
 5   amended and the subsection is amended by adding paragraphs to
 6   read:
 7   Section 1741-A.    Powers and duties of department.
 8      (a)   Powers and duties.--The department shall:
 9            (1)   Receive, review and act on applications for the
10      creation of a cyber charter school and have the power to
11      request further information from applicants, obtain input
12      from interested persons or entities and hold hearings
13      regarding applications. The department shall create and post
14      on its publicly accessible Internet website a standard
15      application form for the creation of a new cyber charter
16      school.
17            (2)   Renew the charter of cyber charter school and renew
18      the charter of a charter school approved under section 1717-A
19      or 1718-A which provides instruction through the Internet or
20      other electronic means. Upon renewal of a charter of a
21      charter school approved under section 1717-A or 1718-A, the
22      charter school shall qualify as a cyber charter school under
23      this subdivision and shall be subject to the provisions of
24      this subdivision. The department shall create and post on its
25      publicly accessible Internet website a standard application
26      form for existing cyber charter schools seeking renewal of
27      the cyber charter school's charter.
28            * * *
29            (5)   Develop forms, including the standard application
30      forms under paragraphs (1) and (2) and notification form

20250HB1500PN1795                    - 10 -
 1      under paragraph (6)(ii) and section 1748-A(b), necessary to
 2      carry out the provisions of this subdivision.
 3            (6)   (i)     By February 1 of each year, notify each cyber
 4            charter school identified as a low-achieving school of
 5            the following duties:
 6                         (A)   Within 15 days of receipt of a notification
 7                  under this subparagraph, a cyber charter school shall
 8                  notify the parents of each enrolled student of the
 9                  cyber charter school's designation.
10                         (B)   Upon registration of a kindergarten student
11                  and enrollment of a new student in any grade, a cyber
12                  charter school shall notify the parents or guardians
13                  of the student that the student will be assigned to a
14                  low-achieving school during the school year of the
15                  cyber charter school's designation.
16                  (ii)    Failure to provide the notice required under
17            subparagraph (i)(A) or (B) shall be grounds for
18            nonrenewal or revocation of a charter under section 1729-
19            A.
20                  (iii)    The notice under subparagraph (i) shall be in
21            a form provided by the department.
22            (7)   Annually post the annual budget of the cyber charter
23      school provided under section 1716-A(i).
24      * * *
25      Section 7.     Section 1742-A of the act is amended to read:
26   Section 1742-A.        Assessment and evaluation.
27      (a)   Duties of department.--The department shall:
28            (1)   Annually assess whether each cyber charter school is
29      meeting the goals of its charter and is in compliance with
30      the provisions of the charter and conduct a comprehensive

20250HB1500PN1795                        - 11 -
 1      review prior to granting a [five-year] renewal of the
 2      charter.
 3            (2)   Annually review each cyber charter school's
 4      performance on the Pennsylvania System of School Assessment
 5      test, standardized tests and other performance indicators to
 6      ensure compliance with 22 Pa. Code Ch. 4 (relating to
 7      academic standards and assessment) or subsequent regulations
 8      promulgated to replace 22 Pa. Code Ch. 4.
 9            (3)   Have ongoing access to all records, instructional
10      materials and student and staff records of each cyber charter
11      school and to every cyber charter school facility to ensure
12      the cyber charter school is in compliance with its charter
13      and this subdivision.
14            (4)   Annually publish the results of the assessment under
15      paragraph (1) and the evaluation performance standards under
16      paragraph (2) for each cyber charter school on the
17      department's publicly available Internet website.
18            (5)   Upon completion for each cyber charter school,
19      publish the comprehensive review under paragraph (1).
20      (b)   Penalty.--Failure to provide information requested by
21   the department under this section shall be grounds for
22   nonrenewal or revocation of a charter under section 1729-A.
23      Section 8.    The act is amended by adding a section to read:
24   Section 1742.1-A.    Fund balance limits.
25      (a)   Limitation.--For the 2025-2026 school year and each
26   school year thereafter, a cyber charter school may not
27   accumulate an unassigned fund balance that exceeds 12% of the
28   cyber charter school's total expenditures.
29      (b)   Refund.--Any unassigned fund balance in place on June
30   30, 2026, and on June 30 of each year thereafter, in excess of

20250HB1500PN1795                    - 12 -
 1   the fund balance limit under subsection (a) shall be refunded on
 2   a pro rata basis within 90 days to all school districts that
 3   paid tuition to the cyber charter school in the prior school
 4   year, based upon the cyber charter school's average daily
 5   membership for each school district that paid tuition to the
 6   cyber charter school. Failure to comply with this subsection
 7   shall be grounds for nonrenewal or revocation of a charter under
 8   section 1729-A.
 9      (c)   Information.--By October 31, 2026, and by October 31 of
10   each year thereafter, each cyber charter school shall provide
11   the department and all school districts that paid tuition to the
12   cyber charter school in the prior school year with information
13   certifying compliance with this section. The information shall
14   be provided in a form and manner prescribed by the department
15   and shall include information on the cyber charter school's
16   ending unassigned fund balance expressed as a dollar amount and
17   as a percentage of the cyber charter school's total budgeted
18   expenditures for that school year.
19      (d)   Prohibition.--Unassigned money of the cyber charter
20   school in excess of the unassigned fund balance limit may not be
21   used to pay bonuses or provide employment incentives to an
22   administrator, board of trustees member, employee, staff member
23   or contractor and may not be transferred to a charter school
24   foundation. If a cyber charter school uses money in excess of
25   the unassigned fund balance limit to pay bonuses or provide
26   employment incentives to an administrator, board of trustees
27   member, employee, staff member or contractor or transfers the
28   money to a charter school foundation, the value of the bonus
29   payment, employment incentive or money transfer shall be
30   refunded on a pro rata basis to all school districts that paid

20250HB1500PN1795                  - 13 -
 1   tuition to the cyber charter school in the prior school year,
 2   based upon the number of students for whom each school district
 3   paid tuition to the cyber charter school multiplied by the
 4   Statewide cyber charter school tuition rate under section
 5   1725.1-A.
 6      (e)   Definition.--As used in this section, the term
 7   "unassigned fund balance" shall mean the portion of the fund
 8   balance of a cyber charter school that is appropriable for
 9   expenditure or not legally or otherwise obligated for a specific
10   or tentative future use as reported on the annual financial
11   report at the end of the school year.
12      Section 9.     Section 1743-A(a)(2) and (3), (e)(1), (f) and (h)
13   of the act are amended, subsections (a), (c) and (d) are amended
14   by adding paragraphs and the section is amended by adding
15   subsections to read:
16   Section 1743-A.     Cyber charter school requirements and
17                  prohibitions.
18      (a)   Special financial requirements prohibited.--A cyber
19   charter school shall not:
20            * * *
21            (2)   except as provided for in subsection (e), provide
22      payments to parents or guardians for the purchase of
23      instructional materials; [or]
24            (3)   except as compensation for the provision of specific
25      services, enter into agreements to provide funds to a school
26      entity[.]; or
27            (4)   provide payments, gifts, reimbursement or other
28      incentives to a parent or guardian of any student or
29      prospective student for enrolling, considering enrolling or
30      providing information to any parent or guardian enrolling or

20250HB1500PN1795                    - 14 -
 1      considering enrolling a student in the charter school.
 2      * * *
 3      (b.1)   Enrollment parameters.--If a cyber charter school is
 4   designated for comprehensive support and improvement, the cyber
 5   charter school shall be subject to an enrollment parameter and
 6   may not expand its enrollment beyond a 5% increase of its
 7   highest reported enrollment of the previous three years from the
 8   date of identification. Upon designation, the department shall
 9   calculate the cyber charter school's enrollment parameter and
10   shall communicate the enrollment parameter to the cyber charter
11   school. The enrollment parameter may not be surpassed during any
12   period the cyber charter school retains the designation of
13   comprehensive support and improvement. Failure to comply with
14   this subsection shall be grounds for nonrenewal or revocation of
15   a charter under section 1729-A.
16      (c)   School district.--A cyber charter school shall make
17   available upon request, either in writing or electronically, to
18   each student's school district of residence the following:
19            * * *
20            (5)   Proof of residency for each student that the school
21      district is required to make payments for under sections
22      1725-A and 1725.1-A. The following shall apply:
23                  (i)   Proof of residency shall be a document with the
24            parent or guardian's name and address on it, including an
25            active residential lease agreement, a mortgage statement
26            no more than three months old, a bank statement no more
27            than three months old, a utility or Internet bill no more
28            than three months old, a tax bill no more than three
29            months old or an insurance document no more than three
30            months old.

20250HB1500PN1795                      - 15 -
 1                   (ii)   A school district shall not request proof of
 2            residency from a cyber charter school for a student
 3            enrolled at a cyber charter school more than once per
 4            month.
 5      (d)   Parent or guardian.--Upon request and prior to the
 6   student's first day in a cyber charter school, the cyber charter
 7   school shall, either in writing or electronically, provide to
 8   the parent or guardian of a student the following:
 9            * * *
10            (14)    A notice of the requirement under subsection (c)(5)
11      to provide proof of residency upon request, not to exceed
12      monthly.
13      (d.1)   Statements required.--Prior to the student's first day
14   at a cyber charter school, the cyber charter school shall obtain
15   a written statement from the child's parent or guardian
16   acknowledging receipt and acceptance of the cyber charter
17   school's information and policies under subsection (d).
18      (e)   Students.--For each student enrolled, a cyber charter
19   school shall:
20            (1)    provide all instructional materials, which may
21      include electronic or digital books in place of textbooks;
22            * * *
23      (f)   Annual report.--A cyber charter school shall submit an
24   annual report no later than August 1 of each year to the
25   department in the form prescribed by the department[.] to be
26   posted on the department's publicly accessible Internet website.
27   Beginning with the annual report for the 2025-2026 school year,
28   the department shall require the written report to include:
29            (1)    A list of all entities providing financing for
30      capital projects of the cyber charter school.

20250HB1500PN1795                       - 16 -
 1          (2)   All expenditures to an educational management
 2    service provider.
 3          (3)   The annual budget of the cyber charter school under
 4    section 1716-A(i).
 5          (4)   Data in a form prescribed by the department to
 6    validate student wellness checks required under section
 7    1748.1-A.
 8    * * *
 9    (h)   Offices and facilities.--
10          (1)   A cyber charter school shall [maintain]:
11                (i)    Maintain an administrative office within this
12          Commonwealth where all student records shall be
13          maintained at all times and which shall [provide] be
14          considered as the principal place of business for service
15          of process for any action brought against the cyber
16          charter school or cyber charter school staff members.
17                (ii)   Provide the department with the addresses of
18          all offices and facilities of the cyber charter school,
19          the ownership thereof and copies of any lease
20          arrangements[. The administrative office of the cyber
21          charter school shall be considered as the principal place
22          of business for service of process for any action brought
23          against the cyber charter school or cyber charter school
24          staff members.] entered by or on behalf of the cyber
25          charter school and a description of the purpose and use
26          of each facility. The cyber charter school shall notify
27          the department of any changes in this information within
28          ten days of the change. The department shall post the
29          information required under this paragraph on its publicly
30          accessible Internet website.

20250HB1500PN1795                     - 17 -
 1                  (iii)   Provide the department with a list of all
 2            entities providing financing for capital projects of the
 3            cyber charter school.
 4            (2)   A cyber charter school shall be prohibited from
 5      owning or having any financial interest in additional offices
 6      and facilities beyond the administrative office under
 7      paragraph (1) without seeking an amendment to its charter
 8      under section 1747-A and receiving the approval from the
 9      department.
10            (3)   Revenue generated from the rent, lease or sale of
11      charter-owned property shall be paid annually by June 30 of
12      the next school year to resident school districts by
13      prorating the revenue based on each resident school
14      district's average daily membership in the cyber charter
15      school as reported to the department.
16            (4)   A cyber charter school shall report payments made
17      under paragraph (3) on the cyber charter school's annual
18      financial report in a format determined by the department.
19            (5)   Failure to comply with this subsection shall be
20      grounds for nonrenewal or revocation of a charter under
21      section 1729-A.
22      * * *
23      (j)   Definitions.--As used in this section, the following
24   words and phrases shall have the meanings given to them in this
25   subsection unless the context clearly indicates otherwise:
26      "Gift."     Anything that is received without consideration of
27   equal or greater value, provided that the value of the gift is
28   greater than $10.
29      Section 10.     The act is amended by adding a section to read:
30   Section 1743.1-A.      Cyber charter school fund balance

20250HB1500PN1795                      - 18 -
 1                  accountability.
 2      (a)   Information required.--No later than October 31, 2025,
 3   each cyber charter school shall submit to the department, in a
 4   form and manner prescribed by the department, a statement of
 5   revenues, expenditures and changes in fund balances for
 6   governmental funds for the fiscal year ending June 30, 2025,
 7   including a narrative and documentation explaining the specific
 8   purpose and related amounts for which any governmental fund
 9   balance is designated as nonspendable, restricted, committed or
10   assigned as classified in the annual financial reports submitted
11   in accordance with section 218.
12      (b)   Payment.--No later than December 31, 2025, based on the
13   information reported under subsection (a), each cyber charter
14   school shall pay to the Commonwealth an amount equal to the sum
15   of the amounts as follows:
16            (1)   The unassigned fund balance payment calculated as
17      follows:
18                  (i)    Multiply the total expenditures of the cyber
19            charter school by 0.5.
20                  (ii)    Subtract the product calculated under
21            subparagraph (i) from the end-of-year unassigned fund
22            balance.
23                  (iii)    Determine the greater of $0 or the difference
24            in subparagraph (ii).
25            (2)   Capital project fund payment calculated as follows:
26                  (i)    Multiply the total expenditures of the cyber
27            charter school by 0.2.
28                  (ii)    Subtract the product calculated in subparagraph
29            (i) from the end-of-year fund balance for the capital
30            projects fund.

20250HB1500PN1795                       - 19 -
 1                  (iii)   Determine the greater of $0 or the difference
 2            in subparagraph (ii).
 3      (c)   Use.--The money received under this section shall be
 4   transferred to the Commonwealth Financing Authority for the
 5   program established under section 1753.2-E of the act of April
 6   9, 1929 (P.L. 343, No.176), known as The Fiscal Code. The
 7   following shall apply:
 8            (1)   No less than 25% of the money available under this
 9      section shall be used to fund projects recommended by the
10      Department of Community and Economic Development under
11      section 1753.2-E(b.1). The Department of Community and
12      Economic Development may, in its discretion, recommend
13      projects from applications received in a previous application
14      round.
15            (2)   Notwithstanding section 1753.2-E(a) and (n) of The
16      Fiscal Code, a charter school and a regional charter school
17      shall be eligible to apply for and receive money available
18      under this section provided that if the charter school or
19      regional charter school facility where the awarded project is
20      located is sold, transferred or conveyed within five years
21      from the date of the award of the grant, the charter school
22      or regional charter school shall notify the Commonwealth
23      Financing Authority and the new owner of record shall
24      reimburse the Commonwealth Financing Authority in an amount
25      equal to 80% of the amount of the grant.
26      (d)   Definitions.--As used in this section, the following
27   words and phrases shall have the meanings given to them in this
28   subsection unless the context clearly indicates otherwise:
29      "Capital project fund."      The money accounting for financial
30   resources that are restricted, committed or assigned to be

20250HB1500PN1795                      - 20 -
 1   obligated or expended for capital outlays by a cyber charter
 2   school.
 3      "Unassigned fund balance."      That portion of the fund balance
 4   of a cyber charter school that is appropriable for expenditures
 5   or not legally or otherwise obligated for a specific or
 6   tentative future use as reported on the annual financial report
 7   at the end of the school year.
 8      Section 11.      Section 1745-A(f)(3) of the act is amended to
 9   read:
10   Section 1745-A.      Establishment of cyber charter school.
11      * * *
12      (f)    Evaluation criteria.--
13             * * *
14             (3)   Upon approval of a cyber charter school application,
15      a written charter shall be developed which shall contain the
16      provisions of the charter application and be signed by the
17      secretary and each member of the board of trustees of the
18      cyber charter school. The charter, when duly signed, shall
19      act as legal authorization of the establishment of a cyber
20      charter school. The charter shall be legally binding on the
21      department, the cyber charter school and its board of
22      trustees. The charter shall be for a period of no less than
23      three years nor more than five years [and may be renewed for
24      a period of five years by the department].
25             * * *
26      Section 12.      Section 1747-A heading and introductory
27   paragraph of the act are amended and the section is amended by
28   adding subsections to read:
29   Section 1747-A.      Cyber charter school application, renewal and
30                   amendment.

20250HB1500PN1795                     - 21 -
 1      (a)   Application.--In addition to the provisions of section
 2   1719-A, an application to establish a cyber charter school shall
 3   also include the following:
 4            * * *
 5      (b)   Form.--The application to establish a cyber charter
 6   school shall be made upon the standard application form in paper
 7   and electronic formats as determined by the department.
 8      (c)   Renewal.--
 9            (1)   A cyber charter school shall submit a renewal
10      application as provided under section 1719-A with the
11      department by October 1 of the final year of the charter.
12            (2)   A cyber charter school's charter may be renewed for
13      a period of no less than three years and no more than five
14      years by the department or appeal board.
15      (d)   Charter amendments.--Amendments to charters shall be in
16   accordance with the following:
17            (1)   A cyber charter school may request amendments to its
18      approved written charter by filing a written document
19      describing the requested amendment with the department.
20            (2)     Within 60 days of the department's receipt of the
21      request for an amendment, the department shall provide for
22      public comment on the requested amendment under 65 Pa.C.S.
23      Ch. 7 (relating to open meetings).
24            (3)     An applicant for an amendment shall have the right
25      to appeal the denial of a requested amendment to the appeal
26      board provided for under section 1721-A.
27      Section 13.      Sections 1748-A and 1748.1-A of the act, amended
28   or added July 11, 2024 (P.L.618, No.55), are amended to read:
29   Section 1748-A.      Enrollment and notification.
30      (a)   Notice to school district.--

20250HB1500PN1795                      - 22 -
 1        (1)   Within 10 days of the enrollment of a student to a
 2    cyber charter school, the parent or guardian and the cyber
 3    charter school shall notify the student's school district of
 4    residence of the enrollment through the use of the
 5    notification form under subsection (b).
 6        (2)   If a school district [which has received notice
 7    under paragraph (1)] determines that a student is not a
 8    resident of the school district, the following apply:
 9              (i)    [Within seven days of receipt of the notice
10        under paragraph (1), the] The school district shall
11        notify the cyber charter school and the department that
12        the student is not a resident of the school district.
13        Notification of nonresidence shall include the basis for
14        the determination.
15              (ii)    [Within seven days of] Following the
16        notification under subparagraph (i), the [cyber charter
17        school] department shall review the notification of
18        nonresidence[, respond to the school district and provide
19        a copy of the response to the department]. If the [cyber
20        charter school] department agrees that a student is not a
21        resident of the school district, it shall determine and
22        notify the cyber charter school of the proper district of
23        residence of the student. [before requesting funds from
24        another school district.
25              (iii)   Within seven days of receipt of the response
26        under subparagraph (ii), the school district shall notify
27        the cyber charter school that it agrees with the cyber
28        charter school's determination or does not agree with the
29        cyber charter school's determination.
30              (iv)    A school district that has notified the cyber

20250HB1500PN1795                   - 23 -
 1        charter school that it does not agree with the cyber
 2        charter school's determination under subparagraph (iii)
 3        shall appeal to the department for a final
 4        determination.]
 5             (v)    All decisions of the department regarding the
 6        school district of residence of a student shall be
 7        subject to review by the Commonwealth Court.
 8             (vi)    A school district shall continue to make
 9        payments to a cyber charter school under section 1725-A
10        during the time in which the school district of residence
11        of a student is in dispute.
12             (vii)    If a final determination is made that a
13        student is not a resident of an appealing school
14        district, the cyber charter school shall return all funds
15        provided on behalf of that student during the period for
16        which the student was not a resident of the school
17        district to the school district within 30 days.
18             (viii)    If a final determination is made by the
19        department or Commonwealth Court that a student is not a
20        resident of an appealing school district, the secretary
21        shall assess an administrative fine equal to the
22        Statewide cyber charter school tuition rate under section
23        1725.1-A on the cyber charter school. Any sum collected
24        as a penalty under this subparagraph may be used by the
25        department for the payment of costs of administration of
26        this article.
27             (ix)    The department shall revoke or deny renewal of
28        a cyber charter school's charter if, in any school year
29        other than a cyber charter school's first year of
30        operation, the number of administrative fines assessed on

20250HB1500PN1795                  - 24 -
 1            the cyber charter school exceeds 1% of the cyber charter
 2            school's average daily membership in the previous school
 3            year.
 4      (b)   Notification form.--The department shall develop a
 5   notification form for use under subsection (a). The notification
 6   shall include:
 7            (1)   The name, home address and mailing address of the
 8      student.
 9            (2)   The grade in which the student is being enrolled.
10            (3)   The date the student will be enrolled.
11            (4)   The name and address of the cyber charter school and
12      the name and telephone number of a contact person able to
13      provide information regarding the cyber charter school.
14            (5)   The signature of the parent or guardian and an
15      authorized representative of the cyber charter school.
16            (6)   Proof of residency, which shall be a document with
17      the parent or guardian's name and address on it, including an
18      active residential lease agreement, a mortgage statement no
19      more than three months old, a bank statement no more than
20      three months old, a utility or Internet bill no more than
21      three months old, a tax bill no more than three months old or
22      an insurance document no more than three months old.
23      (c)   Withdrawal.--
24            (1)     The cyber charter school and the parent or guardian
25      of a student enrolled in a cyber charter school shall provide
26      written notification to the student's school district of
27      residence within 10 days following the withdrawal of a
28      student from the cyber charter school.
29            (2)   If the written notification required under paragraph
30      (1) is dated after a notification by the school district

20250HB1500PN1795                      - 25 -
 1      under subsection (a)(2)(i), the administrative fine provided
 2      under subsection (a)(2)(viii) applies.
 3   Section 1748.1-A.    Enrollee wellness checks.
 4      (a)   Requirements.--A cyber charter school shall, at least
 5   once during any week consisting of at least three full or
 6   partial days of academic instruction, ensure that each enrolled
 7   student is [able to be] visibly seen and communicated with in
 8   real time by a teacher, administrator or other representative of
 9   the cyber charter school, either in person or via electronic
10   means, in order to ensure the well-being of the student and
11   verify participation in the educational program. The requirement
12   under this subsection may be satisfied by students turning on a
13   webcam during synchronous online instruction.
14      (a.1)     Failure to comply.--Failure to comply with subsection
15   (a) shall be grounds for nonrenewal or revocation of a charter
16   under section 1729-A.
17      (b)   Report.--If any indication of abuse, neglect or harm to
18   a child is observed, the cyber charter school administrator,
19   employee or representative shall report the concerns in
20   accordance with 23 Pa.C.S. Ch. 63 (relating to child protective
21   services).
22      (c)   Well-being.--The department may require proof of
23   compliance with this section by a cyber charter school to ensure
24   the well-being of the enrolled student in a cyber charter school
25   and verify participation in the educational program.
26      Section 14.     Section 1749-A(a)(1) of the act is amended by
27   adding subparagraphs and the section is amended by adding a
28   subsection to read:
29   Section 1749-A.    Applicability of other provisions of this act
30                     and of other acts and regulations.

20250HB1500PN1795                    - 26 -
 1      (a)    General requirements.--Cyber charter schools shall be
 2   subject to the following:
 3             (1)   The following:
 4                   * * *
 5                   (xiv.1)    Section 751.
 6                   * * *
 7                   (xx.1)    Section 807.1
 8                   * * *
 9      (d)    Penalty.--Failure to comply with this section shall be
10   grounds for nonrenewal or revocation of a charter under section
11   1729-A.
12      Section 15.      The act is amended by adding a section to read:
13   Section 1752-A.         Cyber charter school moratorium.
14      Beginning with the 2025-2026 school year through the 2029-
15   2030 school year, the department may not review or act on any
16   application for the establishment of a new cyber charter school
17   regardless of the date on which the application was or is
18   received by the department.
19      Section 16.      Section 2509.8(f)(i) of the act is amended and
20   the section is amended by adding a subsection to read:
21      Section 2509.8.         Extraordinary Special Education Program
22   Expenses.--* * *
23      (f)    (i)    For the 2016-2017 school year [and each school year
24   thereafter] through the 2024-2025 school year, an amount equal
25   to one percent (1%) of the special education appropriation shall
26   be distributed to school districts and charter schools for
27   extraordinary expenses incurred in providing a special education
28   program or service to one or more students with disabilities as
29   approved by the Secretary of Education. Such special education
30   program or service shall include, but not be limited to, the

20250HB1500PN1795                        - 27 -
 1   transportation of students with disabilities; services related
 2   to occupational therapy, physical therapy, speech and language,
 3   hearing impairments or visual impairments; or training in
 4   orientation and mobility for children who are visually impaired
 5   or blind.
 6      * * *
 7      (g)    For the 2025-2026 school year and each school year
 8   thereafter, an amount equal to two percent (2%) of the special
 9   education appropriation shall be distributed to school districts
10   and charter schools for extraordinary expenses incurred in
11   providing a special education program or service to one or more
12   students with disabilities as approved by the Secretary of
13   Education. The special education program or service shall
14   include, but not be limited to, the transportation of students
15   with disabilities, services related to occupational therapy,
16   physical therapy, speech and language, hearing impairments or
17   visual impairments or training in orientation and mobility for
18   children who are visually impaired or blind. The following shall
19   apply:
20      (i)    No less than one percent (1%) of the special education
21   appropriation may be distributed to school districts and charter
22   schools as follows:
23      (A)    Funds distributed under this subparagraph shall be
24   allocated for students for which all the following criteria are
25   met:
26      (I)    Expenses are incurred on an annual basis that are equal
27   to or greater than seventy-five thousand dollars ($75,000).
28      (II)     The expenses associated with the application represent
29   at least one percent (1%) of the school district's or charter
30   school's total special education expenditures as reported in the

20250HB1500PN1795                    - 28 -
 1   most recent annual financial reports submitted in accordance
 2   with section 218.
 3      (III)    The student must not have been enrolled in the school
 4   district or charter school for more than two (2) consecutive
 5   school years.
 6      (B)    The department shall prioritize applications with the
 7   highest rates in clause (A)(II).
 8      (ii)    No less than one percent (1%) of the special education
 9   appropriation may be distributed to school districts and charter
10   schools as follows:
11      (A)    Money distributed under this subparagraph shall be
12   allocated for students for which all the following criteria are
13   met:
14      (I)    Expenses are incurred on an annual basis that are equal
15   to or greater than seventy-five thousand dollars ($75,000).
16      (II)    The student must not have been enrolled in the school
17   district or charter school for more than two (2) consecutive
18   school years.
19      (B)    The department shall prioritize applications with the
20   highest expenses in clause (A)(I).
21      (iii)    The following shall apply to money distributed to a
22   school district or a charter school under this subsection:
23      (A)    Subtract the State subsidies paid on behalf of the
24   student to the school district or, for a student enrolled in a
25   charter school, the charter school payment received by the
26   charter school where the child is enrolled from the expense
27   incurred for the student.
28      (B)    No school district or charter school shall in any school
29   year receive an aggregate amount under this subsection which
30   exceeds the total amount of funding available multiplied by the

20250HB1500PN1795                   - 29 -
 1   percentage equal to the greatest percentage of the State's
 2   special education students enrolled in a school district or
 3   charter school.
 4      (h)   (1)   Except as provided under paragraph (2), a school
 5   district or charter school may not in any school year receive
 6   more than one hundred fifty thousand dollars ($150,000).
 7      (2)   A school district of the first class may not in any
 8   school year receive more than three hundred thousand dollars
 9   ($300,000).
10      Section 17.    This act shall take effect immediately.




20250HB1500PN1795                   - 30 -