HB 2167 — An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, making editorial changes to delete references to "approved private school" for the purpose of adding references to "approved special education school."

PRINTER'S NO.     2809

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2167
                                               Session of
                                                 2026

     INTRODUCED BY N. NELSON, SANCHEZ, M. MACKENZIE, RIVERA, HILL-
        EVANS, DALEY, SCHWEYER, CEPEDA-FREYTIZ AND WAXMAN,
        JANUARY 28, 2026

     REFERRED TO COMMITTEE ON EDUCATION, JANUARY 28, 2026


                                    AN ACT
 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," making editorial changes to delete
 6      references to "approved private school" for the purpose of
 7      adding references to "approved special education school."
 8      The General Assembly of the Commonwealth of Pennsylvania
 9   hereby enacts as follows:
10      Section 1.    Sections 1376(a), (a.1), (a.2), (b), (c.2),
11   (c.3), (c.4), (c.5), (c.6), (c.7), (c.9) and (e), 1377(c) and
12   (d), 1377.1, 1377.2 and 1383(d) of the act of March 10, 1949
13   (P.L.30, No.14), known as the Public School Code of 1949, are
14   amended to read:
15      Section 1376.    Cost of Tuition and Maintenance of Certain
16   Exceptional Children in Approved Institutions.--(a)    When any
17   child between school entry age and twenty-one (21) years of age
18   and resident in this Commonwealth, who is blind or deaf, or has
19   cerebral palsy and/or neurological impairment and/or muscular
20   dystrophy and/or is intellectually disabled and/or has a serious
 1   emotional disability and/or has autism/pervasive developmental
 2   disorder and is enrolled, with the approval of the Department of
 3   Education, as a pupil in an approved [private] special education
 4   school approved by the Department of Education, in accordance
 5   with standards and regulations promulgated by the State Board of
 6   Education, the school district in which such child is resident
 7   or, for students placed by a charter school, the charter school
 8   in which the student was enrolled shall pay the greater of
 9   either twenty per centum (20%) of the actual audited cost of
10   tuition and maintenance of such child in such school, as
11   determined by the Department of Education, or its "tuition
12   charge per elementary pupil" or its "tuition charge per high
13   school pupil," as calculated pursuant to section 2561, and the
14   Commonwealth shall pay, out of funds appropriated to the
15   department for special education, the balance due for the costs
16   of such child's tuition and maintenance, as determined by the
17   department. For the school years 1989-1990, 1990-1991 and 1991-
18   1992, the school district payment shall be no greater than forty
19   percent (40%) of the actual audited costs of tuition and
20   maintenance of such child in such school. For the 1992-1993
21   school year through the 2003-2004 school year, the school
22   district or charter school payment shall be the greater of forty
23   percent (40%) of the actual audited costs of tuition and
24   maintenance of such child in such school, as determined by the
25   Department of Education, or its "tuition charge per elementary
26   pupil" or its "tuition charge per high school pupil," as
27   calculated pursuant to section 2561, and the Commonwealth shall
28   pay, out of funds appropriated to the department for approved
29   [private] special education schools, the balance due for the
30   costs of such child's tuition and maintenance, as determined by

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 1   the department. For the 2004-2005 school year and each school
 2   year thereafter, the school district or charter school payment
 3   shall be the greater of forty percent (40%) of the approved
 4   tuition rate as established pursuant to subsection (c.3) or
 5   (c.5) or the school district or charter school's "tuition
 6   charges per elementary pupil" or "tuition charges per secondary
 7   pupil" as calculated under section 2561, and the Commonwealth
 8   shall pay out of funds appropriated to the department for
 9   approved [private] special education schools the balance of the
10   approved tuition rate due for the cost of such child's tuition
11   and maintenance. The department will credit the district of
12   residence with average daily membership for such child
13   consistent with the rules of procedure developed in accordance
14   with section 2501. If the residence of such child in a
15   particular school district cannot be determined, the
16   Commonwealth shall pay the whole cost of tuition and maintenance
17   of such child as established under subsection (c.3) or (c.5).
18      (a.1)   For the 2004-2005 school year, the following shall
19   apply:
20      (1)    The Department of Education shall determine the payment
21   amount for each approved [private] special education school for
22   all students enrolled in an approved [private] special education
23   school for the 2003-2004 school year based on the average of:
24      (i)    The preliminary budget submitted to the Department of
25   Education by the approved [private] special education school for
26   the 2004-2005 school year.
27      (ii)    The midyear budget submitted to the Department of
28   Education by the approved [private] special education school for
29   the 2003-2004 school year.
30      (iii)   The audit issued by the Governor's Office of the

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 1   Budget for the 2002-2003 school year, excluding questioned
 2   costs.
 3      (2)   Where the 2002-2003 audit is not available, the
 4   Department of Education shall use the claim form submitted to it
 5   by the approved [private] special education school for the 2002-
 6   2003 school year. In the event that an approved [private]
 7   special education school has not submitted a claim form for the
 8   2002-2003 school year, the Department of Education shall use the
 9   audit or, where the audit is not available, the claim form for
10   the 2001-2002 school year.
11      (3)   For the purposes of determining the payment under
12   paragraph (1) for an approved [private] special education school
13   that was not in operation for the 2002-2003 school year, the
14   Department of Education shall utilize the approved [private]
15   special education school's preliminary budget for the 2004-2005
16   school year instead of the audit identified under paragraph (1)
17   (iii).
18      (4)   No later than August 10, 2004, the Department of
19   Education shall notify each school district of residence or
20   charter school of a child enrolled in an approved [private]
21   special education school of its payment amount under subsection
22   (a).
23      (5)   The Department of Education shall pay each approved
24   [private] special education school the total amount calculated
25   pursuant to this subsection divided into twelve (12) monthly
26   payments. The Department of Education shall withhold the school
27   district or charter school payment amount calculated under
28   subsection (a) from the amount of any and all State payments
29   made to the school district or charter school. In no event shall
30   the sum of the Commonwealth's share of payments to approved

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 1   [private] special education schools under this subsection exceed
 2   the appropriation for approved [private] special education
 3   schools.
 4      (a.2)     For the 2005-2006 school year and each school year
 5   thereafter, the Department of Education shall determine the
 6   payment amount for each approved [private] special education
 7   school for all students enrolled in an approved [private]
 8   special education school for the prior school year as follows:
 9      (1)     (i)   Multiply the payment determined for the immediate
10   preceding school year by one hundred and twenty-five percent
11   (125%) of the percentage increase in the appropriation for
12   special education for the fiscal year prior to the fiscal year
13   in which payments under this subsection are made.
14      (ii)     Add the product from subparagraph (i) to the payment
15   determined for the immediate preceding school year.
16      (2)     No later than May 10, 2005, and no later than May 10 of
17   each year thereafter, the Department of Education shall notify
18   each school district of residence or charter school of a child
19   enrolled in an approved [private] special education school of
20   its payment amount under subsection (a).
21      (3)     The Department of Education shall pay each approved
22   [private] special education school the total amount calculated
23   pursuant to this subsection divided into twelve (12) monthly
24   payments. The Department of Education shall withhold the school
25   district or charter school payment amount calculated under
26   subsection (a) from the amount of any and all State payments
27   made to the school district or charter school. In no event shall
28   the sum of the Commonwealth's share of payments to approved
29   [private] special education schools under this subsection exceed
30   the appropriation for approved [private] special education

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 1   schools.
 2      (b)     When any person less than school entry age or more than
 3   twenty-one (21) years of age and resident in this Commonwealth,
 4   who is blind or deaf, or has cerebral palsy and/or has
 5   neurological impairment and/or has muscular dystrophy, or has
 6   autism/pervasive developmental delay, and is enrolled, with the
 7   approval of the Department of Education, as a pupil in an
 8   approved [private] special education school approved by the
 9   Department of Education, the Commonwealth shall pay to such
10   school the approved tuition rate for such child's tuition and
11   maintenance, and in addition, in the case of any child less than
12   school entry age, who is blind, the cost, as determined by the
13   Department of Education of instructing the parent of such blind
14   child in caring for such child.
15      (c.2)
16      (4)     Beginning with the 2004-2005 school year and each school
17   year thereafter, each approved [private] special education
18   school shall maintain an accounting and bookkeeping system and
19   be subject to audit as provided in standards promulgated by the
20   Department of Education. Such standards shall require that each
21   approved [private] special education school submit an audit to
22   the Department of Education by November 1 of each year. Such
23   audit shall be conducted in accordance with generally accepted
24   accounting standards by an independent certified public
25   accountant. Such standards shall include a definition of
26   administrative costs, which costs shall not exceed ten percent
27   (10%) of each approved [private] special education school's
28   total costs.
29      (5)     (i)   Where the amount of an approved [private] special
30   education school's reportable costs in the 2004-2005 fiscal year

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 1   is less than the amount of revenues received by the approved
 2   [private] special education school for the 2004-2005 fiscal year
 3   from the Commonwealth for the provision of educational services
 4   to children who have been approved by the Department of
 5   Education, the difference may be retained by the approved
 6   [private] special education school for use in the 2005-2006
 7   fiscal year.
 8      (ii)    Beginning in the 2005-2006 fiscal year, where the
 9   amount of reportable costs in a fiscal year is less than the
10   amount of revenues received in that fiscal year by the approved
11   [private] special education school from the Commonwealth for the
12   provision of educational services to children who have been
13   approved by the Department of Education, the approved [private]
14   special education school shall remit the difference to the
15   Commonwealth. Any such funds shall be deposited in the Audit
16   Resolution Fund for the resolution of previous audits.
17      (6)    Audits of cost reports submitted for school years prior
18   to the 2004-2005 school year shall be completed in a manner
19   consistent with prior audit practices. An approved [private]
20   special education school may submit an audit for the 2003-2004
21   school year prepared by an independent certified public
22   accountant provided the following have occurred:
23      (i)    The Department of Education has failed to process and
24   settle the cost reports within twelve (12) months from
25   submission by the approved [private] special education school.
26      (ii)    The Department of Education has failed to settle any
27   appeals or postsettlement resolution within fifteen (15) months
28   from submission by the approved [private] special education
29   school.
30      (iii)   The approved [private] special education school has

20260HB2167PN2809                   - 7 -
 1   responded to reasonable requests for information and documents
 2   by the Department of Education.
 3   Upon receipt of the independent audit for the 2003-2004 school
 4   year, the Department of Education shall have three (3) months to
 5   review the audit and settle any outstanding payments due to or
 6   from the approved [private] special education school.
 7      (c.3)   For payments made during the 2004-2005 school year,
 8   the Department of Education shall establish an approved tuition
 9   rate for each approved [private] special education school by
10   dividing the amount calculated under subsection (a.1) by the
11   full-time equivalent enrollment for the approved [private]
12   special education school for the 2003-2004 school year. This
13   calculation shall be adjusted for residential and non-
14   residential students. The approved tuition rate multiplied by
15   the full-time equivalent enrollment shall not exceed the amount
16   calculated under subsection (a.1).
17      (c.4)   Beginning August 15, 2004, and no later than August 15
18   of each year thereafter, each approved [private] special
19   education school shall submit budget information for the current
20   school year on forms and in a manner determined by the
21   Department of Education. The budget information shall include a
22   proposed tuition rate or rates and projected full-time
23   equivalent enrollment for the current year. An approved
24   [private] special education school may submit separate proposed
25   tuition rates for up to three levels of services and for day and
26   residential students, pursuant to the guidelines established
27   under subsection (c.7).
28      (c.5)   For payments made during the 2005-2006 school year and
29   each school year thereafter, beginning January 15, 2005, and no
30   later than January 15 of each year thereafter, the Department of

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 1   Education shall establish an approved tuition rate or rates and
 2   full-time equivalent enrollment for each approved [private]
 3   special education school for the current school year. Where an
 4   approved [private] special education school has submitted one
 5   tuition rate, the approved tuition rate shall be determined by
 6   dividing the amount calculated under subsection (a.2) by the
 7   full-time equivalent enrollment for the approved [private]
 8   special education school for the prior school year. Where an
 9   approved [private] special education school has submitted more
10   than one tuition rate, the sum of the products of each approved
11   tuition rate and corresponding full-time equivalent enrollment
12   for the approved [private] special education school for the
13   prior school year shall equal the amount calculated under
14   subsection (a.2). An approved [private] special education school
15   may enroll students in excess of the approved full-time
16   equivalent enrollment. Where an approved [private] special
17   education school enrolls students in excess of the approved
18   full-time equivalent enrollment, it must show a corresponding
19   decrease in its approved tuition rate.
20      (c.6)   No later than May 1, 2005, and May 1 of each school
21   year thereafter, the department shall annually publish a report
22   on the department's publicly accessible World Wide Web site that
23   shall include, but not be limited to:
24      (1)   The approved tuition rate or rates for each approved
25   [private] special education school for the current school year.
26      (2)   A description of the exceptionalities each approved
27   [private] special education school is approved to serve.
28      (3)   A description of all programs and services offered by
29   each approved [private] special education school.
30      (c.7)   No later than November 1, 2004, the Department of

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 1   Education shall issue guidelines establishing the levels of
 2   services to assist each approved [private] special education
 3   school in determining its proposed tuition rate or rates. The
 4   guidelines shall allow an approved [private] special education
 5   school to establish approved tuition rates for up to three
 6   levels of services and for day and residential students.
 7      * * *
 8      (c.9)   Beginning with audited data for the 2016-2017 school
 9   year, the total of the amounts remitted to the Commonwealth
10   under subsection (c.2)(5)(ii) shall be distributed to each
11   approved [private] special education school with reportable
12   costs that exceed the amount of revenue received as follows:
13      (1)   Subtract the amount of revenue received under subsection
14   (a.2) from the reportable costs in the audit submitted to the
15   Department of Education under subsection (c.2)(4).
16      (2)   Multiply the amount in paragraph (1) by the lesser of
17   the total of the amounts remitted to the Commonwealth under
18   subsection (c.2)(5)(ii) or the total of the amounts in paragraph
19   (1).
20      (3)   Divide the amount in paragraph (2) by the total of the
21   amounts in paragraph (1).
22      (4)   Funds distributed under this subsection shall be paid in
23   May of the following school year.
24      (5)   Funds distributed under this subsection shall not be
25   included in determining the payment amount under subsection
26   (a.2).
27      * * *
28      (e)   The following words and phrases as used in this section
29   shall have the meanings given to them in this subsection unless
30   the context clearly indicates otherwise:

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 1      "Approved full-time equivalent enrollment" means the full-
 2   time equivalent enrollment set by the Department of Education
 3   pursuant to the provisions of subsection (c.3) or (c.5).
 4      "Approved tuition rate" means the final tuition rate set by
 5   the Department of Education pursuant to the provisions of
 6   subsection (c.3) or (c.5).
 7      "Audit," for the purpose of subsection (a.1), means the
 8   fiscal audit issued by the Governor's Office of the Budget,
 9   excluding questioned costs.
10      "Claim form," for the purpose of subsection (a.1), means the
11   form that each approved [private] special education school
12   submitted following the end of the fiscal year showing the final
13   costs claimed for the fiscal year.
14      "Current school year" means the year in which payment is
15   being made.
16      "Full-time equivalent enrollment" means the number of
17   students enrolled in an approved [private] special education
18   school pursuant to subsection (a) or (b).
19      "Independent certified public accountant" means a member of
20   the American Institute of Certified Public Accountants that has
21   a minimum of five (5) years' verifiable experience in performing
22   audits of government funds for nonprofit organizations with a
23   comparable or larger annual budget.
24      "Midyear budget," for the purpose of subsection (a.1), means
25   the adjusted budget for the 2003-2004 school year submitted by
26   each approved [private] special education school in January
27   2004.
28      "Preliminary budget," for the purpose of subsection (a.1),
29   means the budget for the 2004-2005 school year submitted by each
30   approved [private] special education school in June 2004.

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 1      "Prior school year" means the year for which payment is made
 2   during the current year.
 3      "Proposed tuition rate" means the amount submitted by each
 4   approved [private] special education school to the Department of
 5   Education to be used in establishing the cost that the approved
 6   [private] special education school incurred to provide
 7   instructional and residential services for each full-time
 8   equivalent student. An approved [private] special education
 9   school may submit information to establish costs for up to three
10   (3) levels of services and for day and residential students.
11      Section 1377.   Payment of Cost of Tuition and Maintenance of
12   Certain Children with Disabilities.--* * *
13      (c)   For the purpose of enabling the Department of Education
14   to determine from time to time what amounts are due to schools
15   for the visually impaired or hearing impaired or for the
16   cerebral palsied and/or brain injured and/or muscular
17   dystrophied or for the socially and emotionally disabled and/or
18   intellectually disabled hereunder, such schools shall forward to
19   the department, at such times and in such form as the department
20   shall prescribe, sworn statements setting forth the names, ages,
21   and residences of all pupils enrolled hereunder, specifying the
22   school districts liable for a part of the cost of tuition and
23   maintenance of any such pupils, the per capita cost of and
24   maintenance of pupils, and such other information as the
25   department shall require.
26      For the purpose of providing adequate administration of the
27   program and to carry out the preaudit functions authorized in
28   section 1376(a), one-half of one percent (.50%) of the total
29   appropriations for approved [private] special education schools
30   from all funds shall be allocated to the Department of

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 1   Education.
 2      (d)   When, during the course of the 1982-1983 school year,
 3   programs for children with disabilities are caused to be
 4   transferred from schools or institutions for the visually
 5   impaired or hearing impaired, or cerebral palsied or brain
 6   injured or muscular dystrophied or intellectually disabled, or
 7   socially and emotionally disabled, as provided for in sections
 8   1376 and 1376.1, to school districts or intermediate units, as
 9   provided for in sections 2509 and 2509.1, under unanticipated or
10   emergency circumstances, and when such transfers necessitate the
11   transfer of funds from the appropriation to the Department of
12   Education for special education for approved [private] special
13   education schools to the appropriation to the Department of
14   Education for payments on account of special education of
15   children with disabilities in public schools, the Secretary of
16   Education shall be empowered so to transfer such funds, upon
17   approval of the Secretary of the Budget and written notification
18   to the State Treasurer and the chairmen of the House and Senate
19   Appropriations and Education Committees.
20      Section 1377.1.   Transfer of Funds for Transferal Programs.--
21   When, during the course of a school year or after the end of a
22   school year, programs for children with disabilities are caused
23   to be transferred from schools or institutions for the visually
24   impaired or hearing impaired, or cerebral palsied or brain
25   injured or muscular dystrophied or intellectually disabled, or
26   socially and emotionally disabled, as provided for in sections
27   1376 and 1376.1, to school districts or intermediate units, as
28   provided for in sections 2509 and 2509.1, and when such
29   transfers necessitate the transfer of funds from the
30   appropriation to the Department of Education for special

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 1   education for approved [private] special education schools to
 2   the appropriation to the Department of Education for payments on
 3   account of special education of children with disabilities in
 4   public schools, the Secretary of Education shall be empowered to
 5   transfer such funds, upon approval of the Secretary of the
 6   Budget and written notification to the State Treasurer and the
 7   chairmen of the House and Senate Appropriations and Education
 8   Committees.
 9      Section 1377.2.    Emergency Permits at Approved [Private]
10   Special Education Schools and Chartered Schools for the Deaf and
11   Blind.--Approved [private] special education schools and
12   chartered schools for the deaf and blind shall have the
13   authority to apply for emergency permits through the Department
14   of Education pursuant to the criteria for eligibility
15   established under 22 Pa. Code § 49.31 (relating to criteria for
16   eligibility) as if the teachers were employed by a public school
17   entity, provided that all other conditions for obtaining an
18   emergency permit are met.
19      Section 1383.    Extended Special Education Enrollment Due to
20   COVID-19.--* * *
21      (d)   As used in this section, the following words and phrases
22   shall have the meanings given to them in this subsection unless
23   the context clearly indicates otherwise:
24      "IEP."     An individualized education program established under
25   22 Pa. Code Ch. 14.
26      "School entity."    A school district, intermediate unit, area
27   career and technical school, charter school, regional charter
28   school, cyber charter school, approved [private] special
29   education school or chartered school for the education of the
30   deaf and blind.

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 1      Section 2.     The definition of "school entity" in section
 2   1301-B of the act is amended to read:
 3   Section 1301-B.    Definitions.
 4      The following words and phrases when used in this article
 5   shall have the meaning given to them in this section unless the
 6   context clearly indicates otherwise:
 7      * * *
 8      "School entity."     A school district, intermediate unit, area
 9   career and technical school, charter school, cyber charter
10   school, regional charter school, approved [private] special
11   education school, chartered school for the education of the deaf
12   or the blind or private residential rehabilitative institution.
13      Section 3.     Sections 2502.51(d)(1), 2509.5(f) and 2561(8) of
14   the act are amended to read:
15      Section 2502.51.     Basic Education Funding for 2011-2012
16   School Year.--* * *
17      (d)    The following shall apply:
18      (1)    (i)   Funds received by a school district under
19   subsection (a)(3)(ii)(A) shall be used to satisfy judgments and
20   past-due accounts payable beyond ninety (90) or more days,
21   including health care benefits, payments to charter schools,
22   payments to approved [private] special education schools and
23   payments to intermediate units.
24      (ii)    If all judgments have been satisfied and past-due
25   accounts paid, funds may be used for timely payment of health
26   care benefits, payments to charter schools, payments to approved
27   [private] special education schools, payments to intermediate
28   units and for other expenses approved by the Secretary of
29   Education to ensure the fiscal stability of the school district.
30      * * *

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 1      Section 2509.5.   Special Education Payments to School
 2   Districts.--* * *
 3      (f)   The Secretary of Education shall develop a definition of
 4   severely classified exceptional students by September 20, 1996.
 5   This definition may include the primary exceptionality, level of
 6   intervention, type of support and related services requirements
 7   elements currently collected through the PennData system. This
 8   definition shall not include students who are institutionalized,
 9   in approved [private] special education school placements, in
10   detention home programs, in mentally gifted programs or in early
11   intervention programs operated under the provisions of the act
12   of December 19, 1990 (P.L.1372, No.212), known as the "Early
13   Intervention Services System Act." This definition shall be
14   submitted to the majority chairman and the minority chairman of
15   the Appropriations Committee and the Education Committee of the
16   Senate and the majority chairman and the minority chairman of
17   the Appropriations Committee and the Education Committee of the
18   House of Representatives for review and comment no later than
19   September 20, 1996. No sooner than fifteen (15) days and not
20   later than thirty (30) days after submission of the proposed
21   definition to the committees, the Secretary of Education shall
22   approve a definition of severely classified exceptional
23   students.
24      * * *
25      Section 2561.    Tuition Charges for Pupils of Other
26   Districts.--A school district receiving elementary or high
27   school pupils or career and technical or other extension
28   education pupils who are residents of another school district
29   shall compute the tuition charges as follows:
30      * * *

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 1      (8)   Charter School Tuition Charge.   When a charter school
 2   established pursuant to Article XVII-A enrolls any eligible
 3   student in an approved [private] special education school
 4   pursuant to section 1376, its "tuition charge per elementary
 5   pupil" or its "tuition charge per secondary pupil" shall be
 6   calculated in accordance with clauses (1) through (3).
 7      Section 4.   No later than 30 days after the effective date of
 8   this section, the State Board of Education shall initiate the
 9   promulgation of a final-omitted regulation in accordance with
10   the act of June 25, 1982 (P.L.633, No.181), known as the
11   Regulatory Review Act, to change the term "approved private
12   school" to "approved special education school" in 22 Pa. Code
13   Ch. 14. No other changes shall be included in the final-omitted
14   regulation.
15      Section 5.   No later than 60 days after the effective date of
16   this section, the Department of Education shall initiate the
17   promulgation of a final-omitted regulation in accordance with
18   the act of June 25, 1982 (P.L.633, No.181), known as the
19   Regulatory Review Act, to change the term "approved private
20   school" to "approved special education school" in 22 Pa. Code
21   Chs. 171 and 711. No other changes shall be included in the
22   final-omitted regulation.
23      Section 6.   A reference in statute or regulation to an
24   "approved private school" shall be deemed a reference to an
25   "approved special education school."
26      Section 7.   An appropriation in a General Appropriation Act
27   made for "special education - approved private schools" shall be
28   deemed to be an appropriation made for "special education -
29   approved special education schools."
30      Section 8.   Upon the effective date of this section, an

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1   approved private school shall be deemed to be an approved
2   special education school.
3      Section 9.   This act shall take effect immediately.




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