(a) Except as set forth in subsection (b), pupils residing in a school district in which no public high school is maintained may attend, during the entire term, at the expense of the school district of which they are residents, the nearest or most conveniently located high school of such class as they may desire to attend, unless the board of school directors of the district of residence shall have assigned the pupils to a high school and adequate transportation is provided thereto. Pupils who reside in a school district in which no public high school, other than a career and technical high school is maintained, may attend, during the entire term, the nearest or most conveniently located academic high school. In any district which maintains a high school whose program of studies terminates before the end of the twelfth year, pupils who have satisfactorily completed the program of studies there available in other than career and technical schools or departments, or have completed a program of studies equivalent to said program of studies in some other school or schools, may attend, at the expense of the school district in which they live, and for the purpose of pursuing academic studies of a higher grade, the nearest or most conveniently located high school of such type as they may desire to attend giving further high school work.

(b) If a third class school district operating under a special board of control pursuant to section 692¹ has, with the approval of the Secretary of Education, curtailed its educational program by eliminating its high school and has not assigned its high school pupils to another school district and provided adequate transportation in a manner under subsection (a), the secretary shall have the following authority:

(c) A school district designated under subsection (b)(1) shall provide transportation to reassigned students to its high school and shall be eligible for transportation reimbursement in a manner consistent with section 2541.⁴

(d) By August 1 of the year in which a school district is designated under subsection (b)(1) and each August 1 thereafter, the secretary shall publish on the Internet website of the Department of Education and submit to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin, the following information:

(e) Notwithstanding any other provision of statute, regulation, guideline, directive, decision or agreement to the contrary, a school district which is designated under subsection (b)(1) may not be required to include the students in its public school enrollment report for the purposes of determining an interscholastic sports classification by a private entity that is organized under the laws of this Commonwealth to administer interscholastic athletics.

(f) A student assigned to a school district designated under subsection (b)(1) shall be included in the average daily membership of the student's school district of residence for the purpose of providing basic education funding allocations and special education funding payments pursuant to Article XXV.⁵

(g) By February 1 of each year, the Legislative Budget and Finance Committee shall submit an annual report to the chairman and minority chairman of the Appropriations Committee and the Education Committee of the Senate and to the chairman and minority chairman of the Appropriations Committee and the Education Committee of the House of Representatives summarizing the financial and academic status of a distressed school district under this section and include an audit of its accounts for the immediately preceding school year.

(h) For the two (2) consecutive school years following designation under subsection (b)(1), a school district designated under subsection (b)(1) shall receive an additional per-pupil sum of five hundred dollars ($500) for students reassigned pursuant to this section. These additional funds shall be used for transition services to students, including student mentoring, tutoring, employee in-service programs designed to assist transitioning students and security expenditures.

(h.1) For the two (2) consecutive school years following the effective date of this subsection,⁶ a school district designated under subsection (b)(1) shall receive an additional per-pupil sum of five hundred ($500) dollars for students reassigned and entering grades seven, eight and nine pursuant to this section. These additional funds shall be used for transition services to students, including student mentoring, tutoring, employe in-service programs designed to assist transition students and security expenditures.

(i) The following apply: