Bill Text: PA HB1678 | 2011-2012 | Regular Session | Introduced


Bill Title: Providing for opportunity scholarships and for educational improvement tax credit; and repealing provisions of the Tax Reform Code of 1971 relating to educational improvement tax credit.

Spectrum: Strong Partisan Bill (Republican 14-1)

Status: (Introduced - Dead) 2011-06-23 - Referred to EDUCATION [HB1678 Detail]

Download: Pennsylvania-2011-HB1678-Introduced.html

  

 

    

PRINTER'S NO.  2187

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1678

Session of

2011

  

  

INTRODUCED BY SCHRODER, TURZAI, BLOOM, CHRISTIANA, COX, DENLINGER, EVERETT, GINGRICH, HENNESSEY, KILLION, METCALFE, RAPP AND SWANGER, JUNE 23, 2011

  

  

REFERRED TO COMMITTEE ON EDUCATION, JUNE 23, 2011  

  

  

  

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," providing for opportunity

6

scholarships and for educational improvement tax credit; and

7

repealing provisions of the Tax Reform Code of 1971 relating

8

to educational improvement tax credit.

9

The General Assembly of the Commonwealth of Pennsylvania

10

hereby enacts as follows:

11

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

12

as the Public School Code of 1949, is amended by adding an

13

article to read:

14

ARTICLE XXV-B

15

FAILING SCHOOLS STUDENT RESCUE

16

(a)  Preliminary Provisions

17

Section 2501-B.  Short title.

18

This article shall be known and may be cited as the Failing

19

Schools Student Rescue Act.

20

(b)  Opportunity Scholarships

 


1

Section 2501.1-B.  Legislative findings.

2

The General Assembly finds that:

3

(1)  Pursuant to section 14 of Article III of the

4

Constitution of Pennsylvania, the General Assembly has the

5

responsibility to provide for the maintenance and support of

6

a thorough and efficient system of public education to serve

7

the needs of this Commonwealth.

8

(2)  Parents are best suited to choose the most

9

appropriate means of education for their school-age children,

10

and the extraordinary challenges facing students in

11

persistently failing schools dictates that parents have

12

educational choice.

13

(3)  Providing diverse educational opportunities for the

14

children of this Commonwealth is a civic and civil rights

15

imperative and a matter of serious concern.

16

(4)  The importance of providing educational choices that

17

will meet the needs of parents, and the need to maintain and

18

support an effective system of education, make it imperative

19

to provide for the increased availability of diverse

20

opportunities, including both public and nonpublic programs

21

of education, to benefit all citizens of this Commonwealth.

22

(5)  Public schools are the foundation of the system of

23

education in this Commonwealth. Further, Pennsylvania's

24

longstanding tradition of local control of public education

25

allows communities to adapt their public school programs to

26

meet local needs. For these reasons, a robust program of

27

interdistrict school choice is a critical means of providing

28

families with increased educational options within the

29

traditional public school system.

30

(6)  The accessibility to families of nonpublic

- 2 -

 


1

educational alternatives decreases the burden on the

2

Commonwealth and local school districts and increases the

3

range of educational choices available to Pennsylvania

4

families, thus providing a benefit to all citizens of this

5

Commonwealth.

6

(7)  It is the goal of the General Assembly to offer

7

assistance to all families in this Commonwealth, so as to

8

provide every child in this Commonwealth with diverse

9

educational opportunities and options.

10

(8)  The programs of educational choice provided in this

11

subarticle are elements of an overall program of providing

12

funds to increase the availability of educational

13

opportunities for school-age children in this Commonwealth.

14

(9)  A comparatively far greater proportion of public

15

funds are and, upon implementation of an educational choice

16

program, will continue to be devoted to the benefit of

17

children enrolled in the public schools of this Commonwealth.

18

Therefore, an opportunity scholarship program that offers

19

assistance to parents who choose to enroll their children in

20

participating nonpublic schools should be viewed as an

21

integral part of the Commonwealth's overall program of

22

educational funding and not as an isolated individual

23

program.

24

(10)  A program of financial assistance to enhance

25

educational choice in this Commonwealth, as one element of

26

the Commonwealth's plan for the funding of diverse

27

educational opportunities for the citizens of this

28

Commonwealth, will better prepare Commonwealth citizens to

29

compete for employment opportunities, will foster development

30

of a more capable and better-educated work force and will

- 3 -

 


1

better enable the Commonwealth to fulfill its obligation of

2

providing children with the opportunity to receive a quality

3

education.

4

Section 2502-B.  Definitions.

5

The following words and phrases when used in this subarticle

6

shall have the meanings given to them in this section unless the

7

context clearly indicates otherwise:

8

"Assessment."  The Pennsylvania System of School Assessment

9

test, the Keystone Exam, an equivalent local assessment or

10

another test established by the State Board of Education to meet

11

the requirements of section 2603-B(d)(10)(i) and required under

12

the No Child Left Behind Act of 2001 (Public Law 107-110, 115

13

Stat. 1425) or its successor Federal statute or required to

14

achieve other standards established by the department for the

15

public school or school district under 22 Pa. Code § 403.3

16

(relating to single accountability system).

17

"Average daily membership."  A school district's average

18

daily membership as defined in section 2501(3).

19

"Board."  The Education Opportunity Board established under

20

this subarticle.

21

"Department."  The Department of Education of the

22

Commonwealth.

23

"Kindergarten."  A one-year formal kindergarten program that

24

occurs during the school year immediately prior to first grade.

25

"Nonpublic school."  A school, other than a public school,

26

located within this Commonwealth where a Commonwealth resident

27

may legally fulfill the compulsory school attendance

28

requirements of this act and that meets the applicable

29

requirements of Title VI of the Civil Rights Act of 1964 (Public

30

law 88-352, 78 Stat. 241). The term also includes a full-time or

- 4 -

 


1

part-time kindergarten program operated by a nonpublic school.

2

"Nonresident public school."  A public school outside a

3

child's resident school district.

4

"Nonresident school district."  A school district other than

5

the school district in which a school-age child resides.

6

"Nonresident student."  A school-age child attending a public

7

school outside the child's resident school district.

8

"Opportunity scholarship."  An opportunity scholarship

9

awarded to a child under this subarticle to pay tuition for the

10

child to attend a nonresident public school or a participating

11

nonpublic school.

12

"Opportunity scholarship program" or "program."  The

13

opportunity scholarship program established under this

14

subarticle.

15

"Opportunity scholarship recipient."  A child who is awarded

16

an opportunity scholarship under this subarticle.

17

"Parent."  A Commonwealth resident and legalized resident of

18

the United States who is a parent or guardian of a school-age

19

child.

20

"Participating nonpublic school."  A nonpublic school located

21

in this Commonwealth and offering a program of instruction for

22

kindergarten through 12th grade, or a combination of grades,

23

that certifies to the board under section 2505-B that it meets

24

the following criteria:

25

(1)  the nonpublic school is a nonprofit entity that is

26

exempt from Federal taxation under section 501(c)(3) of the

27

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

28

1 et seq.);

29

(2)  the nonpublic school does not discriminate in its

30

admission policies or practices for opportunity scholarship

- 5 -

 


1

applicants on the basis of measures of achievement or

2

aptitude or status as a handicapped person, provided,

3

however, that an applicant may be required to meet

4

established eligibility criteria for participation in magnet

5

schools or in schools with specialized academic missions; and

6

(3)  the nonpublic school is in full compliance with all

7

Federal and State laws applicable to nonpublic schools on the

8

date prior to the effective date of this section.

9

"Persistently lowest achieving school."  A public elementary

10

or secondary school within this Commonwealth that is among the

11

lowest performing 5% of schools. To determine the lowest

12

performing 5% of schools, the department shall:

13

(1)  consider all public schools in this Commonwealth,

14

with the exception of charter schools, cyber charter schools,

15

area vocational-technical schools, schools that do not draw

16

their student body from a particular attendance boundary and

17

schools with specialized academic programs with specific

18

admissions criteria;

19

(2)  exclude schools that have made adequate yearly

20

progress or were determined to be making progress for at

21

least one of the two most recent school years or that have

22

not been measured for adequate yearly progress in one of the

23

two most recent school years;

24

(3)  rank all remaining schools based upon their

25

performance on the most recent assessment for which data is

26

posted on the department's publicly accessible Internet

27

website; and

28

(4)  include the lowest-performing 5% of schools ranked

29

under paragraph (3) on a list of persistently lowest-

30

achieving schools.

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1

"Resident school district."  The school district in which a

2

school-age child resides.

3

"School-age child."  A child enrolling in kindergarten or in

4

grades 1 through 12.

5

"Student with a disability."  A school-age child who has been

6

identified, in accordance with 22 Pa. Code Ch. 14 (relating to

7

special education services and programs), as a "child with a

8

disability," as defined in 34 CFR § 300.8 (relating to a child

9

with a disability).

10

"Total revenue per average daily membership."  A school

11

district's total revenue per average daily membership minus the

12

amount of reimbursement to the school district for pupil

13

transportation under sections 2509.3 and 2541.

14

Section 2503-B.  Opportunity scholarship program.

15

(a)  Establishment.--Beginning with the 2011-2012 school

16

year, the opportunity scholarship program shall be established

17

to provide scholarships to help children pay tuition to attend a

18

nonresident public school selected by the parents of the

19

students or a participating nonpublic school.

20

(b)  Eligibility.--During the 2011-2012 school year, the

21

opportunity scholarship program shall be available to children

22

who satisfy either of the following:

23

(1)  attended a persistently lowest achieving school

24

during the 2010-2011 school year or will be a kindergarten

25

student during the 2011-2012 school year in a persistently

26

lowest achieving school; or

27

(2)  will reside within the attendance boundary of a

28

persistently lowest achieving school as of the first day of

29

classes of the 2011-2012 school year.

30

(c)  List of persistently lowest achieving schools to be

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1

published.--By April 1, 2011, or within 30 days of the effective

2

date of this section and by February 1 of each year thereafter,

3

the department shall publish on the department's publicly

4

accessible Internet website and in the Pennsylvania Bulletin a

5

list of persistently lowest achieving schools that will be in

6

effect for purposes of this subarticle for the following school

7

year. The department shall publish the list based upon the most

8

recent school year for which data is available.

9

(d)  Annual certification.--For each school year and by the

10

date established by the department, the selected school shall

11

certify to the department that:

12

(1)  the public school selected has no additional

13

attendance slots available and the district so notifies the

14

department and the student within time limitations

15

established by the department for this purpose;

16

(2)  the student's attendance would place either the

17

receiving school district or the student's district of

18

residence in violation of a valid and binding desegregation

19

order;

20

(3)  the public school requested does not offer

21

appropriate programs or is not structured or equipped with

22

the necessary facilities to meet the special needs of the

23

student or does not offer a particular program requested;

24

(4)  the student has been expelled or is in the process

25

of being expelled pursuant to section 1318 and applicable

26

regulations of the State Board of Education; or

27

(5)  the student does not meet the established

28

eligibility criteria for participation in magnet schools or

29

in schools with specialized academic missions.

30

(e)  Notice.--

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1

(1)  For each school year, by a date established by the

2

department, each school district in this Commonwealth shall 

3

post on its publicly accessible Internet website notice of

4

the following:

5

(i)  A description of the opportunity scholarship

6

program.

7

(ii)  Instructions for applying for an opportunity

8

scholarship.

9

(iii)  A statement as to whether any schools in the

10

school district have been designated by the department as

11

persistently lowest achieving schools.

12

(iv)  Notice that a parent must contact directly the

13

nonresident public school or participating nonpublic

14

school in which the parent's child seeks to enroll for

15

application instructions.

16

(2)  The notice shall be in a form provided by the

17

department.

18

Section 2504-B.  Opportunity scholarship to attend a nonresident

19

public school.

20

(a)  Eligibility.--A child who is eligible to participate in

21

the opportunity scholarship program may receive an opportunity

22

scholarship to pay tuition to attend a nonresident public school

23

that accepts a child's enrollment application under subsection

24

(c).

25

(b)  Application for opportunity scholarships.--

26

(1)  By a date established by the department and pursuant

27

to guidelines developed by the department under section

28

2509.1-B, the parent of a child may apply to the department

29

for an opportunity scholarship for the following school year.

30

(2)  By a date established by the department, the board

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1

shall notify parents whether the scholarships for which the

2

student applied will be awarded for the following school

3

year.

4

(c)  Application for enrollment in a nonresident public

5

school.--

6

(1)  By a date established by the department, the parent

7

of a child who has been awarded a scholarship under

8

subsection (b) may apply to one or more nonresident public

9

schools for enrollment of the child for the following school

10

year. The application shall be on a form provided by the

11

nonresident school district.

12

(2)  (i)  By a date established by the department, the 

13

nonresident school district shall provide written notice

14

to the parent and the department as to whether the child

15

will be offered enrollment in the requested nonresident

16

public school for the following school year.

17

(ii)  By a date established by the department, the

18

parent must provide written notice to the department, the

19

resident school district and the nonresident school

20

district whether the offer of enrollment will be

21

accepted.

22

(iii)  By a date established by the department, the

23

department shall provide the resident school district and

24

the nonresident school district with written confirmation

25

of the opportunity scholarship recipient's enrollment in

26

the nonresident school district.

27

(iv)  If the child is not enrolled in a nonresident

28

public school, the child's resident school district shall

29

determine the public school within the resident school

30

district to which the child will be assigned.

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1

(3)  (i)  Each school district shall develop guidelines

2

setting forth the terms and conditions under which it

3

will enroll or deny nonresident students receiving

4

opportunity scholarships and shall develop an enrollment

5

application form and process.

6

(ii)  The guidelines will provide for the acceptance

7

or denial of student enrollments based on specific,

8

reasonable operational limitations that have been

9

reviewed and preapproved by the department.

10

(4)  A school district that enrolls nonresident students

11

receiving opportunity scholarships must enroll such

12

nonresident students on a lottery basis from a pool of

13

applicants who meet the application deadline established by

14

the department, provided that:

15

(i)  the nonresident student's enrollment in the

16

nonresident school district would not place either the

17

nonresident school district or the resident school

18

district in violation of a valid and binding

19

desegregation order;

20

(ii)  the nonresident student has not been expelled

21

nor is the nonresident student in the process of being

22

expelled under section 1317.2 or 1318 and applicable

23

regulations of the State Board of Education;

24

(iii)  the nonresident student has not been recruited

25

by the school district or its representatives for

26

athletic purposes;

27

(iv)  the nonresident student meets the established

28

eligibility criteria for participation in a magnet school

29

or in a public school with a specialized academic

30

mission; or

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1

(v)  the guidelines developed by the school district

2

are satisfied.

3

(d)  Commonwealth payments.--The Commonwealth shall make

4

payment pursuant to the schedule contained in section 2517 to

5

each school district or area vocational-technical school that

6

accepts a nonresident student under the provisions of this

7

subarticle subject to the following terms and conditions:

8

(1)  (i)  The Commonwealth shall pay to each school

9

district or area vocational-technical school that accepts

10

a nonresident student, on a tuition basis, the amount

11

determined under section 2561.

12

(ii)  For the first year of enrollment in the

13

nonresident public school, if the tuition rate between

14

the nonresident public school and the resident public

15

school is greater than 10%, the Commonwealth shall

16

include the difference above the 10% in the scheduled

17

payment under section 2517 to the nonresident school from

18

funds appropriated for this program under section

19

2506-B(d).

20

(iii)  By July 31 of the year preceding the second

21

school year of enrollment, the resident and nonresident

22

public schools shall negotiate a tuition rate. If an

23

agreed upon tuition rate cannot be negotiated, the board

24

shall establish a tuition rate.

25

(2)  (i)  For a nonresident student who is an opportunity

26

scholarship recipient and defined as a "student with a

27

disability," services provided to the opportunity

28

scholarship recipient shall be charged against the

29

special education subsidy to the resident school district

30

under section 2509.5, provided that the resident school

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1

district shall not be charged more for services provided

2

to the opportunity scholarship recipient by the

3

nonresident school district than the difference between

4

the current year cost of the services had the opportunity

5

scholarship recipient remained in the resident school

6

district and the sum of the opportunity scholarship and

7

the per pupil special education funding following the

8

opportunity scholarship recipient.

9

(ii)  The resident school district shall provide the

10

department with documentation of the prior year's cost of

11

services provided to the opportunity scholarship

12

recipient and an estimate of the cost of providing those

13

services in the current year had the opportunity

14

scholarship recipient remained in the resident school

15

district. For the first year of enrollment in the

16

nonresident school district, any cost not covered by this

17

funding shall be deemed eligible for funding under

18

section 2509.8(e).

19

(3)  An opportunity scholarship recipient shall be

20

included in the average daily membership of the opportunity

21

scholarship recipient's resident school district.

22

(4)  In the event an opportunity scholarship recipient

23

withdraws from a nonresident school district prior to the

24

completion of the school year, the following shall apply:

25

(i)  The nonresident school district shall, within 15

26

days of the opportunity scholarship recipient's

27

withdrawal from the nonresident school district, provide

28

the department with written notice of the opportunity

29

scholarship recipient's withdrawal from the nonresident

30

school district.

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1

(ii)  The resident school district, nonresident

2

school district or participating nonpublic school in

3

which the opportunity scholarship recipient subsequently

4

enrolls shall notify the department within five days of

5

the opportunity scholarship recipient's enrollment.

6

(iii)  Within 30 days after receiving the notice

7

required under subparagraph (ii), the department shall do

8

the following:

9

(A)  If the opportunity scholarship recipient

10

enrolls in the resident school district or a

11

nonresident school district, pay the resident school

12

district or nonresident school district the full

13

amount of the opportunity scholarship payment reduced

14

on a pro rata basis for the portion of the school

15

year in which the opportunity scholarship recipient

16

was enrolled in another school.

17

(B)  If the opportunity scholarship recipient

18

enrolls in a participating nonpublic school, pay the

19

opportunity scholarship recipient's parent the full

20

amount of the opportunity scholarship payment reduced

21

on a pro rata basis for the portion of the school

22

year in which the opportunity scholarship recipient

23

was enrolled in another school. Such payment shall be

24

made to the parents of the opportunity scholarship

25

recipient pursuant to the provisions of section

26

2505-B(b).

27

(e)  Limitation.--The tuition charged by a nonresident school

28

district to an opportunity scholarship recipient under this

29

subarticle shall not exceed the opportunity scholarship awarded

30

to the opportunity scholarship recipient.

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1

(f)  Transportation.--

2

(1)  Notwithstanding any provisions of section 1361 to

3

the contrary, a school district that provides its resident

4

public school pupils with transportation to and from the

5

resident public schools or to and from any points within or

6

without this Commonwealth in order to provide field trips

7

under section 1361 shall provide a student who resides within

8

the school district but regularly attends a nonresident

9

public school, including a charter school, that is located

10

not more than ten miles from the student's resident school

11

district by the nearest public highway, with transportation

12

to and from such nonresident public school or to and from any

13

points within or without this Commonwealth in order to

14

provide field trips under section 1361.

15

(2)  Transportation of a student under this subsection

16

shall be subject to reimbursement under section 2541.

17

Section 2505-B.  Opportunity scholarship to attend a

18

participating nonpublic school.

19

(a)  Eligibility.--The parent of a child who is eligible to

20

receive an opportunity scholarship under section 2503-B and

21

desires to apply for an opportunity scholarship to attend a

22

participating nonpublic school must:

23

(1)  By a date established by the department, apply to

24

the department for an opportunity scholarship for the

25

following school year pursuant to guidelines developed by the

26

department under section 2509-B. By a date established by the

27

department, the department shall notify parents whether the

28

opportunity scholarship will be awarded for the following

29

school year.

30

(2)  Apply for enrollment directly to the participating

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1

nonpublic school pursuant to application procedures developed

2

by the participating nonpublic school. By a date established

3

by the department, a participating nonpublic school shall

4

provide written confirmation to the department of each

5

opportunity scholarship recipient whose application for

6

enrollment has been accepted for the following school year. 

7

By a date established by the department, the department shall

8

provide the opportunity scholarship recipient's resident

9

school district with written confirmation of the opportunity

10

scholarship recipient's enrollment in the participating

11

nonpublic school.

12

(b)  Payment of opportunity scholarship awards.--The

13

Commonwealth shall provide payment of an opportunity scholarship

14

to the parents of each opportunity scholarship recipient who is

15

enrolled in a participating nonpublic school under the

16

provisions of this subarticle subject to the following terms and

17

conditions:

18

(1)  Opportunity scholarships shall be awarded only for

19

the payment of costs of tuition at a participating nonpublic

20

school within this Commonwealth. Opportunity scholarships

21

shall not be awarded for enrollment in a home education

22

program provided under section 1327.1.

23

(2)  Opportunity scholarships shall be paid to the

24

parents of an opportunity scholarship recipient upon the

25

department's receipt of written confirmation of enrollment

26

from the participating nonpublic school selected by the

27

recipient. The opportunity scholarship award shall be paid by

28

check which may be endorsed by the parents only for payment

29

of tuition at the participating nonpublic school at which the

30

opportunity scholarship recipient's enrollment has been

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1

confirmed.

2

(3)  In the event an opportunity scholarship recipient 

3

withdraws from a participating nonpublic school prior to the

4

completion of the school year, the following shall apply:

5

(i)  The participating nonpublic school shall, within

6

15 days of the opportunity scholarship recipient's

7

withdrawal from the participating nonpublic school:

8

(A)  Provide the department with written notice

9

of the opportunity scholarship recipient's withdrawal

10

from the participating nonpublic school.

11

(B)  Return to the department the full amount of

12

the opportunity scholarship payment reduced on a pro

13

rata basis by the tuition for the portion of the

14

school year in which the opportunity scholarship

15

recipient was enrolled.

16

(ii)  If the participating nonpublic school fails to

17

submit to the department the amount required to be paid

18

under subparagraph (i), the nonpublic school shall not be

19

permitted to enroll any future students for a period of

20

five years.

21

(iii)  If the opportunity scholarship recipient

22

enrolls in another participating nonpublic school within

23

the school year for which the opportunity scholarship was

24

awarded, the department shall pay the parent of the

25

opportunity scholarship recipient the opportunity

26

scholarship award prorated for the remaining portion of

27

the school year.

28

(4)  In the event an opportunity scholarship recipient is

29

expelled from a participating nonpublic school prior to the

30

completion of the school year and the opportunity scholarship

- 17 -

 


1

recipient subsequently enrolls in his resident school

2

district, the department shall pay the resident school

3

district the opportunity scholarship award prorated for the

4

remaining portion of the school year. The resident school

5

district shall apply this amount toward providing educational

6

services for the opportunity scholarship recipient, which may

7

include, but shall not be limited to, an alternative

8

assignment or alternative education services.

9

(b.1)  Penalties.--

10

(1)  Each opportunity scholarship check issued under this

11

section shall contain the following statement:

12

"Failure to endorse this check as directed by the

13

Department of Education may subject the endorser to

14

civil penalties and criminal prosecution."

15

(2)  A parent's endorsement or use of an opportunity

16

scholarship check in a manner other than as directed by the

17

department may subject the parent to the following penalties:

18

(i)  A civil penalty equal to 300% of the full amount

19

of the annual opportunity scholarship award made to the

20

parent.

21

(ii)  Disqualification from future eligibility for an

22

opportunity scholarship.

23

(iii)  Criminal prosecution.

24

(c)  Enrollment requirements.--The following shall apply to a

25

participating nonpublic school which admits an opportunity

26

scholarship recipient:

27

(1)  The participating nonpublic school shall not

28

discriminate on any basis that is illegal under Federal or

29

State laws applicable to nonpublic schools on the date prior

30

to the effective date of this section.

- 18 -

 


1

(2)  The participating nonpublic school shall comply with

2

section 1521, which prohibits discrimination in enrollment on

3

the basis of race or color.

4

(3)  The participating nonpublic school may not recruit

5

any public school student to enroll for athletic purposes.

6

(4)  For each school year, by a date established by the

7

department, a nonpublic school that desires to enroll

8

opportunity scholarship recipients under this subarticle

9

shall certify to the department that it satisfies the

10

definition of "participating nonpublic school" in section

11

2502-B. Such certification shall be on a form developed by

12

the department.

13

(d)  Policies.--Upon request, a participating nonpublic

14

school shall make available for review by the parents of any

15

opportunity scholarship recipient seeking enrollment, its

16

written school policies and procedures related to tuition

17

charges, admissions, academic offerings and requirements,

18

discipline, religious instruction, parent involvement,

19

standardized testing, the release of results of standardized

20

tests administered by the participating nonpublic school and

21

extracurricular activities and suspension and expulsion of

22

students, including educational accommodations and counseling

23

offered to students and parents.

24

(e)  Assessments.--

25

(1)  (i)  Each participating nonpublic school shall

26

administer annually an assessment or a nationally normed

27

standardized achievement test in reading/language arts

28

and mathematics to each opportunity scholarship recipient

29

attending the participating nonpublic school in grades 3,

30

5, 8 and 11.

- 19 -

 


1

(ii)  To comply with this paragraph, a participating

2

nonpublic school may either administer an assessment or

3

administer a nationally normed standardized achievement

4

test chosen by the participating nonpublic school from a

5

list established under paragraph (2).

6

(2)  The department shall establish a list of at least

7

eight nationally normed standardized achievement tests from

8

which the participating nonpublic school shall select a test

9

to be administered if the participating nonpublic school does

10

not choose to administer an assessment.

11

(3)  Each participating nonpublic school shall:

12

(i)  Release each opportunity scholarship recipient's

13

individual results on the assessment or nationally normed

14

standardized achievement test administered to opportunity

15

scholarship recipients under paragraph (1) to the parent

16

of the opportunity scholarship recipient.

17

(ii)  If the participating nonpublic school has a

18

publicly accessible Internet website, post on the website

19

the participating nonpublic school's aggregate results on

20

the assessment or nationally normed standardized

21

achievement test administered to opportunity scholarship

22

recipients under paragraph (1), provided that the

23

participating nonpublic school shall not post results

24

that reveal the identity of any individual student.

25

(4)  The participating nonpublic school shall bear the

26

cost of the testing administered under this subsection and

27

shall not impose an assessment or testing fee on an

28

opportunity scholarship recipient.

29

(f)  Construction.--Nothing in this subarticle shall be

30

construed to:

- 20 -

 


1

(1)  Prohibit a participating nonpublic school from

2

limiting admission to a particular grade level, a single

3

gender or to areas of concentration of the participating

4

nonpublic school, including, but not limited to, mathematics,

5

science and the arts.

6

(2)  Empower the Commonwealth or any of its agencies or

7

officers or political subdivisions to impose any additional

8

requirements on any participating nonpublic school which are

9

not otherwise authorized under the laws of this Commonwealth

10

or to require any participating nonpublic school to enroll

11

any opportunity scholarship recipient if the participating

12

nonpublic school does not offer appropriate programs or is

13

not structured or equipped with the necessary facilities to

14

meet the special needs of the opportunity scholarship

15

recipient or does not offer a particular program requested.

16

Section 2506-B.  Amount of opportunity scholarship.

17

(a)  Calculation.--

18

(1)  The amount of the opportunity scholarship shall be

19

up to $5,000 per eligible student.

20

(2)  In no case shall the combined amount of the 

21

opportunity scholarship award and any additional financial

22

assistance provided by a participating nonpublic school

23

exceed the tuition rate for the participating nonpublic

24

school.

25

(b)  Limitation.--No nonresident public school or

26

participating nonpublic school may charge an opportunity

27

scholarship recipient a higher tuition rate than the rate the

28

nonresident public school or participating nonpublic school

29

would have charged to a student who had not received an

30

opportunity scholarship.

- 21 -

 


1

(c)  (Reserved).

2

(d)  Annual appropriations.--

3

(1)  Opportunity scholarships authorized under this

4

subarticle shall be made from annual appropriations made by

5

the General Assembly to the department and moneys available

6

in the fund for that purpose.

7

(2)  In the event that insufficient moneys are

8

appropriated in any fiscal year to provide opportunity

9

scholarships to all eligible opportunity scholarship

10

recipients in the amount authorized, the board shall reduce

11

the number of scholarships available ensuring there is equity

12

among the persistently low-performing school districts.

13

(3)  The total amount of opportunity scholarships

14

provided in any fiscal year shall be limited to the amount of

15

money appropriated for that fiscal year.

16

(e)  Nontaxable.--Opportunity scholarship funds received by a

17

parent pursuant to this subarticle shall not be considered

18

taxable income for purposes of any local taxing ordinance or for

19

purposes of Article III of the act of March 4, 1971 (P.L.6,

20

No.2), known as the Tax Reform Code of 1971, nor shall such

21

opportunity scholarships constitute financial assistance or

22

appropriations to the participating nonpublic school attended by

23

the opportunity scholarship recipient.

24

(f)  Continued eligibility.--Subject to subsection (d), a

25

child enrolled in a nonresident public school or a participating

26

nonpublic school who received an opportunity scholarship under

27

this subarticle in the prior school year shall receive an

28

opportunity scholarship in each school year of enrollment under

29

the opportunity scholarship program, provided that the child

30

remains eligible.

- 22 -

 


1

(g)  Penalties.--Any person who fraudulently submits an

2

opportunity scholarship application or who knowingly falsifies

3

material information on an opportunity application shall be

4

subject to the following penalties:

5

(1)  Imposition by the board of a civil penalty of up to

6

$1,000.

7

(2)  Prosecution for violation of 18 Pa.C.S. § 4904

8

(relating to unsworn falsification to authorities).

9

(3)  Disqualification from future participation in the

10

opportunity scholarship program.

11

(h)  Residence in more than one school district within a

12

school year.--Where an opportunity scholarship recipient resides

13

within more than one school district during a school year, the

14

amount of the opportunity scholarship shall be charged against

15

each resident school district on a pro rata basis.

16

Section 2507-B.  (Reserved).

17

Section 2508-B.  Reduction in amount of school aid.

18

Notwithstanding any other provision of law to the contrary,

19

beginning in the second consecutive school year of enrollment in

20

a nonresident public school or a participating nonpublic school

21

by an opportunity scholarship recipient who was enrolled in the

22

recipient's resident school district or in a charter school or

23

cyber charter school when the recipient first received an

24

opportunity scholarship under this subarticle, the amount of

25

Commonwealth funding paid by the department to the resident

26

school district shall be reduced by an amount determined in

27

section 2504-B(d)(i), (ii) or (iii) for each resident student

28

attending a nonresident public school and section 2506-B(a) for

29

each resident student attending a participating nonpublic

30

school.

- 23 -

 


1

Section 2509-B.  Education Opportunity Board.

2

(a)  Establishment.--The Education Opportunity Board is

3

established within the department and shall consist of five

4

members appointed by the Governor, four of whom shall be

5

selected from lists provided by the Majority Leader and the

6

Minority Leader of the Senate and the Majority Leader and

7

Minority Leader of the House of Representatives, one from each

8

list. The Governor shall appoint no more than three members to

9

the board who are members of the same political party as the

10

Governor.

11

(b)  Terms of members.--

12

(1)  Members of the board appointed under this section

13

shall serve terms as follows:

14

(i)  Two of the members appointed by the Governor

15

shall serve initial terms of seven years.

16

(ii)  One of the members appointed by the Governor

17

shall serve an initial term of five years.

18

(iii)  One of the members appointed by the Governor

19

shall serve an initial term of three years.

20

(iv)  One member appointed by the Governor shall

21

serve at the pleasure of the Governor and shall serve an

22

initial term of three years.

23

(v)  After the expiration of each initial term:

24

(A)  members appointed by the Governor under

25

subparagraphs (i) and (ii) shall be appointed for a

26

term of 5 years.

27

(B)  Members appointed by the Governor under

28

subparagraphs (iii) and (iv) shall be appointed for a

29

term of four years.

30

(C)  each successive appointment shall be

- 24 -

 


1

consistent with the originating list created in

2

subsection (a).

3

(2)  (i)  Except as authorized in this subsection, no

4

board member may be removed from office during a term.

5

The Governor may, upon proof by clear and convincing

6

evidence of malfeasance or misfeasance in office, remove

7

a board member prior to the expiration of the term.

8

(ii)  Before a board member is removed, that member

9

must be provided with a written statement of the reasons

10

for removal and an opportunity for a hearing in

11

accordance with 2 Pa.C.S. Chs. 5 Subch. A (relating to

12

practice and procedure of Commonwealth agencies) and 7

13

Subch. A (relating to judicial review of Commonwealth

14

agency action).

15

(3)  A board member shall hold office until a successor

16

has been appointed and qualified.

17

(4)  A board member may serve successive terms.

18

(5)  No board member may, while in the service of the

19

board, seek or hold a position as any other public official

20

within this Commonwealth or as an officer of a political

21

party.

22

(c)  Chairperson.--The Governor shall annually select a

23

chairperson from among the membership of the board.

24

(d)  Meetings.--Meetings shall be held at the call of the

25

chairperson or upon request in writing of a majority of the

26

board. A majority shall constitute a quorum and a majority of

27

such quorum shall have the authority to act upon any matter

28

properly before the board unless otherwise specified in this

29

subarticle.

30

(e)  Compensation prohibited.--Members of the board shall

- 25 -

 


1

receive no compensation for their services but shall be

2

reimbursed for their actual and necessary expenses incurred in

3

the performance of their official board duties.

4

(f)  Executive director and staff.--

5

(1)  There shall be an executive director of the board

6

who shall serve as the executive officer and secretary of the

7

board. The board shall employ and fix the reasonable

8

compensation of the executive director.

9

(2)  The department shall provide, from existing

10

personnel of the department, adequate staffing to facilitate

11

the responsibilities of the board.

12

(3)  The department shall provide adequate funding, space

13

and equipment to facilitate the activities of the board.

14

(g)  Legal advice and assistance.--The Governor, through his

15

General Counsel, shall provide such legal advice and assistance

16

as the board may require.

17

(h)  Powers and duties.--The board shall have the following

18

powers and duties:

19

(1)  Advise the department concerning the implementation

20

and administration of the opportunity scholarship public

21

school choice demonstration grant and middle-income

22

scholarship programs.

23

(2)  Approve, by a majority vote, the guidelines

24

established by the department under section 2507-B.

25

(3)  Prepare a report to be submitted by December 1,

26

2012, and by December 1 of each year thereafter, to the

27

chairman and minority chairman of the Education Committee of

28

the Senate and the chairman and minority chairman of the

29

Education Committee of the House of Representatives

30

describing the manner in which the board carries out its

- 26 -

 


1

powers and duties under this subsection.

2

Section 2509.1-B.  Powers and duties of department.

3

The department shall have the following powers and duties:

4

(1)  Establish guidelines for the administration of the

5

opportunity and local scholarship program, subject to the

6

approval of the board, as required under section 2507-B.

7

(2)  Administer the opportunity scholarship application

8

and approval processes.

9

(3)  Develop the opportunity scholarship application form

10

and any other forms necessary to administer the opportunity

11

scholarship programs, including the notice required to be

12

provided by school districts under section 2503-B(e).

13

(4)  Certify the process to be used by public school

14

districts to verify the resident school district of program

15

participants.

16

(5)  Announce the award of opportunity scholarships for

17

the following school year under sections 2504-B(b) and 2505-

18

B(a).

19

(6)  Allocate opportunity scholarship funds to

20

opportunity scholarship recipients.

21

(7)  Make payment of opportunity scholarship awards as

22

provided in sections 2504-B and 2505-B.

23

(8)  Beginning after the first school year of

24

implementation of the opportunity scholarship program,

25

prepare a report to be submitted to the Governor and the

26

General Assembly by December 1 of each year, made available

27

to the parents of opportunity scholarship recipients and

28

placed on the department's publicly accessible Internet

29

website that includes at least the following information for

30

the prior school year:

- 27 -

 


1

(i)  The total number of opportunity scholarships

2

requested.

3

(ii)  The total number and total dollar amount of

4

opportunity scholarships awarded, in total and

5

disaggregated by:

6

(A)  Whether the opportunity scholarship

7

recipient attends a nonresident public school or a

8

participating nonpublic school.

9

(B)  Grade level of the opportunity scholarship

10

recipient.

11

(C)  Whether the opportunity scholarship

12

recipient resides in a school district with at least

13

one persistently lowest achieving school.

14

(iii)  The administrative costs of the opportunity

15

scholarship program.

16

(iv)  A listing of nonresident public schools to

17

which opportunity scholarship funds were disbursed on

18

behalf of opportunity scholarship recipients and the

19

amount disbursed to each nonresident public school.

20

(v)  A listing of participating nonpublic schools in

21

which opportunity scholarship recipients enrolled and the

22

number of opportunity scholarship recipients who enrolled

23

in each participating nonpublic school.

24

(9)  For the 2014-2015 school year and each school year

25

thereafter, administer and announce the award of public

26

school choice demonstration grants to eligible school

27

districts as provided under section 2513-B.

28

Section 2510-B.  Study.

29

Following the 2014-2015 school year, the department shall

30

conduct a study of the effectiveness of the opportunity

- 28 -

 


1

scholarship program and shall deliver a written report of its

2

findings, including any recommendations for changes to the

3

program, to the Governor, the chairman and minority chairman of

4

the Education Committee of the Senate and the chairman and

5

minority chairman of the Education Committee of the House of

6

Representatives by December 31, 2015.

7

(c)  Educational Improvement Tax Credit

8

Section 2521-B.  Definitions.

9

The following words and phrases when used in this subarticle

10

shall have the meanings given to them in this section unless the

11

context clearly indicates otherwise:

12

"Business firm."  An entity authorized to do business in this

13

Commonwealth and subject to taxes imposed under Article III, IV,

14

VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,

15

No.2), known as the Tax Reform Code of 1971. The term includes a

16

pass-through entity.

17

"Contribution."  A donation of cash, personal property or

18

services, the value of which is the net cost of the donation to

19

the donor or the pro rata hourly wage, including benefits, of

20

the individual performing the services.

21

"Department."  The Department of Community and Economic

22

Development of the Commonwealth.

23

"Educational improvement organization."  A nonprofit entity

24

which:

25

(1)  is exempt from Federal taxation under section 501(c)

26

(3) of the Internal Revenue Code of 1986 (Public Law 99-514,

27

26 U.S.C. § 1 et seq.); and

28

(2)  contributes at least 80% of its annual receipts as

29

grants to a public school, a chartered school as defined in

30

section 1376.1 or a private school approved under section

- 29 -

 


1

1376 for innovative educational programs.

2

For purposes of this definition, a nonprofit entity

3

"contributes" its annual cash receipts when it expends or

4

otherwise irrevocably encumbers those funds for expenditure

5

during the then current fiscal year of the nonprofit entity or

6

during the next succeeding fiscal year of the nonprofit entity.

7

A "nonprofit entity" includes a school district foundation,

8

public school foundation, charter school foundation or cyber

9

charter school foundation.

10

"Eligible prekindergarten student."  A student, including an

11

eligible student with a disability, who is enrolled in a

12

prekindergarten program and is a member of a household with a

13

maximum annual household income as increased by the applicable

14

income allowance.

15

"Eligible student."  A school-age student, including an

16

eligible student with a disability, who:

17

(1)  is enrolled in a school or a home education program

18

provided under section 1327.1; and

19

(2)  is a member of a household with a maximum annual

20

household income as increased by the applicable income

21

allowance.

22

"Eligible student with a disability."  A prekindergarten

23

student or a school-age student who meets all of the following:

24

(1)  Is either enrolled in a special education school or

25

has otherwise been identified, in accordance with 22 Pa. Code

26

Ch. 14 (relating to special education services and programs),

27

as a "child with a disability," as defined in 34 CFR § 300.8

28

(relating to child with a disability).

29

(2)  Needs special education and related services.

30

(3)  Is enrolled in a prekindergarten program or in a

- 30 -

 


1

school.

2

(4)  Is a member of a household with a household income

3

of not more than the maximum annual household income.

4

"Household."  An individual living alone or with the

5

following: a spouse, parent and their unemancipated minor

6

children, other unemancipated minor children who are related by

7

blood or marriage or other adults or unemancipated minor

8

children living in the household who are dependent upon the

9

individual.

10

"Household income."  All moneys or property received of

11

whatever nature and from whatever source derived. The term does

12

not include the following:

13

(1)  Periodic payments for sickness and disability other

14

than regular wages received during a period of sickness or

15

disability.

16

(2)  Disability, retirement or other payments arising

17

under workers' compensation acts, occupational disease acts

18

and similar legislation by any government.

19

(3)  Payments commonly recognized as old-age or

20

retirement benefits paid to persons retired from service

21

after reaching a specific age or after a stated period of

22

employment.

23

(4)  Payments commonly known as public assistance or

24

unemployment compensation payments by a governmental agency.

25

(5)  Payments to reimburse actual expenses.

26

(6)  Payments made by employers or labor unions for

27

programs covering hospitalization, sickness, disability or

28

death, supplemental unemployment benefits, strike benefits,

29

Social Security and retirement.

30

(7)  Compensation received by United States servicemen

- 31 -

 


1

serving in a combat zone.

2

"Income allowance."

3

(1)  Subject to paragraph (2), the amount of:

4

(i)  Before July 1, 2011, $10,000 for each eligible

5

student, eligible prekindergarten student and dependent

6

member of a household.

7

(ii)  After June 30, 2011, through June 30, 2012,

8

$12,000 for each eligible student, eligible

9

prekindergarten student and dependent member of a

10

household.

11

(iii)  After June 30, 2012, through June 30, 2013,

12

$15,000 for each eligible student, eligible

13

prekindergarten student and dependent member of a

14

household.

15

(2)  Beginning July 1, 2013, the Department of Community

16

and Economic Development shall annually adjust the income

17

allowance amounts under paragraph (1) to reflect any upward

18

changes in the Consumer Price Index for All Urban Consumers

19

for the Pennsylvania, New Jersey, Delaware and Maryland area

20

in the preceding 12 months and shall immediately submit the

21

adjusted amounts to the Legislative Reference Bureau for

22

publication as a notice in the Pennsylvania Bulletin. 

23

"Innovative educational program."  An advanced academic or

24

similar program that is not part of the regular academic program

25

of a public school but that enhances the curriculum or academic

26

program of a public school, chartered school as defined in

27

section 1376.1(a) or private school approved in accordance with

28

section 1376, or provides prekindergarten programs to public

29

school students, students of a chartered school as defined in

30

section 1376.1(a) or students of a private school approved in

- 32 -

 


1

accordance with section 1376.

2

"Maximum annual household income."

3

(1)  Except as stated in paragraph (2) and subject to

4

paragraph (3), the following:

5

(i)  Before July 1, 2011, not more than $50,000.

6

(ii)  After June 30, 2011, through June 30, 2012, not

7

more than $60,000.

8

(iii)  After June 30, 2012, not more than $75,000.

9

(2)  With respect to an eligible student with a

10

disability, as calculated by multiplying:

11

(i)  the sum of:

12

(A)  the applicable amount under paragraph (1);

13

and

14

(B)  the applicable income allowance; by

15

(ii)  the applicable support level factor according

16

to the following table:

17

Support Level

Support Level Factor

18

1

1.50

19

2

2.993

20

(3)  Beginning July 1, 2013, the Department of Community

21

and Economic Development shall annually adjust the income

22

amounts under paragraphs (1) and (2) to reflect any upward

23

changes in the Consumer Price Index for All Urban Consumers

24

for the Pennsylvania, New Jersey, Delaware and Maryland area

25

in the preceding 12 months and shall immediately submit the

26

adjusted amounts to the Legislative Reference Bureau for

27

publication as a notice in the Pennsylvania Bulletin.

28

"Pass-through entity."  A partnership as defined in section

29

301(n.0) of the act of March 4, 1971 (P.L.6, No.2), known as the

30

Tax Reform Code of 1971, a single-member limited liability

- 33 -

 


1

company treated as a disregarded entity for Federal income tax

2

purposes or a Pennsylvania S corporation as defined in section

3

301(n.1) of the Tax Reform Code of 1971.

4

"Prekindergarten program."  A program of instruction for

5

three-year-old or four-year-old students that utilizes a

6

curriculum aligned with the curriculum of the school with which

7

it is affiliated and that provides:

8

(1)  a minimum of two hours of instructional and

9

developmental activities per day at least 60 days per school

10

year; or

11

(2)  a minimum of two hours of instructional and

12

developmental activities per day at least 20 days over the

13

summer recess.

14

"Prekindergarten scholarship organization."  A nonprofit

15

entity that:

16

(1)  Either is exempt from Federal taxation under section

17

501(c)(3) of the Internal Revenue Code of 1986 (Public Law

18

99-514, 26 U.S.C. § 1 et seq.) or is operated as a separate

19

segregated fund by a scholarship organization that has been

20

qualified under section 2522-B.

21

(2)  Contributes at least 80% of its annual cash receipts

22

to a prekindergarten scholarship program by expending or

23

otherwise irrevocably encumbering those funds for

24

distribution during the then current fiscal year of the

25

organization or during the next succeeding fiscal year of the

26

organization.

27

"Prekindergarten scholarship program."  A program to provide

28

tuition to eligible prekindergarten students to attend a

29

prekindergarten program operated by or in conjunction with a

30

school located in this Commonwealth and that includes an

- 34 -

 


1

application and review process for the purpose of making awards

2

to eligible prekindergarten students and awards scholarships to

3

eligible prekindergarten students without limiting availability

4

to only students of one school.

5

"Program."  The educational improvement tax credit program

6

established by this subarticle.

7

"Public school."  A public prekindergarten where compulsory

8

attendance requirements do not apply or a public kindergarten,

9

elementary school or secondary school at which the compulsory

10

attendance requirements of this Commonwealth may be met and that

11

meets the applicable requirements of Title VI of the Civil

12

Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).

13

"Scholarship."  An award under a scholarship program.

14

"Scholarship organization."  A nonprofit entity that:

15

(1)  is exempt from Federal taxation under section 501(c)

16

(3) of the Internal Revenue Code of 1986 (Public Law 99-514,

17

26 U.S.C. § 1 et seq.); and

18

(2)  contributes at least 80% of its annual cash receipts

19

to a scholarship program.

20

For purposes of this definition, a nonprofit entity

21

"contributes" its annual cash receipts to a scholarship program

22

when it expends or otherwise irrevocably encumbers those funds

23

for distribution during the then current fiscal year of the

24

nonprofit entity or during the next succeeding fiscal year of

25

the nonprofit entity.

26

"Scholarship program."  A program to provide tuition to

27

eligible students to attend a school or to participate in a home

28

education program provided under section 1327.1 located in this

29

Commonwealth. A scholarship program must include an application

30

and review process for the purpose of making awards to eligible

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1

students. The award of scholarships to eligible students shall

2

be made without limiting availability to only students of one

3

school or home education program.

4

"School."  A public or nonpublic prekindergarten,

5

kindergarten, elementary school or secondary school at which the

6

compulsory attendance requirements of the Commonwealth may be

7

met and that meets the applicable requirements of Title VI of

8

the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).

9

"School age."  From the earliest admission age to a school's

10

prekindergarten or kindergarten program or, when no

11

prekindergarten or kindergarten program is provided, the

12

school's earliest admission age for beginners, until the end of

13

the school year the student attains 21 years of age or

14

graduation from high school, whichever occurs first.

15

"Special education school."  A school or program within a

16

school that is designated specifically and exclusively for

17

students with any of the disabilities listed in 34 CFR § 300.8

18

(relating to child with a disability) and meets one of the

19

following:

20

(1)  is licensed under the act of January 28, 1988

21

(P.L.24, No.11), known as the Private Academic Schools Act;

22

(2)  is accredited by an accrediting association approved

23

by the State Board of Education;

24

(3)  is a school for the blind or deaf receiving

25

Commonwealth appropriations; or

26

(4)  is operated by or under the authority of a bona fide

27

religious institution or by the Commonwealth or any political

28

subdivision thereof.

29

"Support level."  The level of support needed by an eligible

30

student with a disability, as stated in the following matrix:

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1

(1)  Support level 1. The student is not enrolled in a

2

special education school.

3

(2)  Support level 2. The student is enrolled in a

4

special education school.

5

"Tax credit."  The educational improvement tax credit

6

established under this subarticle.

7

Section 2522-B.  Qualification and application.

8

(a)  Establishment.--In accordance with section 14 of Article

9

III of the Constitution of Pennsylvania, an educational

10

improvement tax credit program is established to enhance the

11

educational opportunities available to all students in this

12

Commonwealth.

13

(b)  Information.--In order to qualify under this subarticle,

14

a scholarship organization, a prekindergarten scholarship

15

organization or an educational improvement organization must

16

submit information to the department that enables the department

17

to confirm that the organization is exempt from taxation under

18

section 501(c)(3) of the Internal Revenue Code of 1986 (Public

19

Law 99-514, 26 U.S.C. § 1 et seq.).

20

(c)  Scholarship organizations and prekindergarten

21

scholarship organizations.--A scholarship organization or

22

prekindergarten scholarship organization must certify to the

23

department that the organization is eligible to participate in

24

the program and must agree to annually report the following

25

information to the department by September 1 of each year:

26

(1)  (i)  The number of scholarships awarded during the

27

immediately preceding school year to eligible students in

28

a prekindergarten program.

29

(ii)  The total and average amounts of scholarships

30

awarded during the immediately preceding school year to

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1

eligible students in a prekindergarten program.

2

(iii)  The number of scholarships awarded during the

3

immediately preceding school year to eligible students in

4

grades kindergarten through eight.

5

(iv)  The total and average amounts of scholarships

6

awarded during the immediately preceding school year to

7

eligible students in grades kindergarten through eight.

8

(v)  The number of scholarships awarded during the

9

immediately preceding school year to eligible students in

10

grades 9 through 12.

11

(vi)  The total and average amounts of scholarships

12

awarded during the immediately preceding school year to

13

eligible students in grades 9 through 12.

14

(vii)  Where the scholarship organization or

15

prekindergarten scholarship organization collects

16

information on a county-by-county basis, the total number

17

and the total dollar amount of scholarships awarded

18

during the immediately preceding school year to residents

19

of each county in which the scholarship organization or

20

prekindergarten scholarship organization awarded

21

scholarships.

22

(2)  The information required under paragraph (1) shall

23

be submitted on a form provided by the department. No later

24

than May 1 of each year, the department shall annually

25

distribute such sample forms, together with the forms on

26

which the reports are required to be made, to each listed

27

scholarship organization and prekindergarten scholarship

28

organization.

29

(3)  The department may not require any other information

30

to be provided by scholarship organizations or

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1

prekindergarten scholarship organizations, except as

2

expressly authorized in this article.

3

(d)  Educational improvement organization.--

4

(1)  An application submitted by an educational

5

improvement organization must describe its proposed

6

innovative educational program or programs in a form

7

prescribed by the department. In prescribing the form, the

8

department shall consult with the Department of Education as

9

necessary. The department shall review and approve or

10

disapprove the application. In order to be eligible to

11

participate in the program, an educational improvement

12

organization must agree to annually report the following

13

information to the department by September 1 of each year:

14

(i)  The name of the innovative educational program

15

or programs and the total amount of the grant or grants

16

made to those programs during the immediately preceding

17

school year.

18

(ii)  A description of how each grant was utilized

19

during the immediately preceding school year and a

20

description of any demonstrated or expected innovative

21

educational improvements.

22

(iii)  The names of the public schools and school

23

districts where innovative educational programs that

24

received grants during the immediately preceding school

25

year were implemented.

26

(iv)  Where the educational improvement organization

27

collects information on a county-by-county basis, the

28

total number and the total dollar amount of grants made

29

during the immediately preceding school year for programs

30

at public schools in each county in which the educational

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1

improvement organization made grants.

2

(2)  The information required under paragraph (1) shall

3

be submitted on a form provided by the department. No later

4

than May 1 of each year, the department shall annually

5

distribute such sample forms, together with the forms on

6

which the reports are required to be made, to each listed

7

educational improvement organization.

8

(3)  The department may not require any other information

9

to be provided by educational improvement organizations,

10

except as expressly authorized in this article.

11

(e)  Notification.--The department shall notify the

12

scholarship organization, prekindergarten scholarship

13

organization or educational improvement organization that the

14

organization meets the requirements of this article for that

15

fiscal year no later than 60 days after the organization has

16

submitted the information required under this section.

17

(f)  Publication.--The department shall annually publish a

18

list of each scholarship organization, prekindergarten

19

scholarship organization or educational improvement organization

20

qualified under this section in the Pennsylvania Bulletin. The

21

list shall also be posted and updated as necessary on the

22

publicly accessible Internet website of the department.

23

Section 2523-B.  Application.

24

(a)  Scholarship organization or prekindergarten scholarship

25

organization.--A business firm shall apply to the department for

26

a tax credit. A business firm shall receive a tax credit if the

27

scholarship organization or prekindergarten scholarship

28

organization that receives the contribution appears on the list

29

established under section 2522-B(f).

30

(b)  Educational improvement organization.--A business firm

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1

must apply to the department for a tax credit. A business firm

2

shall receive a tax credit if the department has approved the

3

program provided by the educational improvement organization

4

that receives the contribution.

5

(c)  Availability of tax credits.--Tax credits shall be made

6

available by the department on a first-come-first-served basis

7

within the limitations established under section 2525-B(a).

8

(d)  Contributions.--A contribution by a business firm to a

9

scholarship organization, prekindergarten scholarship

10

organization or educational improvement organization shall be

11

made no later than 60 days following the approval of an

12

application under subsection (a) or (b).

13

Section 2524-B.  Tax credit.

14

(a)  Scholarship or educational improvement organizations.--

15

In accordance with section 2525-B(a), the Department of Revenue

16

shall grant a tax credit against any tax due under Article III,

17

IV, VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,

18

No.2), known as the Tax Reform Code of 1971, to a business firm

19

providing proof of a contribution to a scholarship organization

20

or educational improvement organization in the taxable year in

21

which the contribution is made which shall not exceed 75% of the

22

total amount contributed during the taxable year by the business

23

firm. For the fiscal year 2011-2012, the tax credit shall not

24

exceed $400,000 annually per business firm for contributions

25

made to scholarship organizations and educational improvement

26

organizations. For the fiscal year 2012-2013, the tax credit

27

shall not exceed $750,000 annually per business firm for

28

contributions made to scholarship organizations or educational

29

improvement organizations.

30

(b)  Additional amount.--The Department of Revenue shall

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1

grant a tax credit of up to 90% of the total amount contributed

2

during the taxable year if the business firm provides a written

3

commitment to provide the scholarship organization or

4

educational improvement organization with the same amount of

5

contribution for two consecutive tax years. The business firm

6

must provide the written commitment under this subsection to the

7

department at the time of application.

8

(c)  Prekindergarten scholarship organizations.--In

9

accordance with section 2525-B(a), the Department of Revenue

10

shall grant a tax credit against any tax due under Article III,

11

IV, VI, VII, VIII, IX or XV of the Tax Reform Code of 1971 to a

12

business firm providing proof of a contribution to a

13

prekindergarten scholarship organization in the taxable year in

14

which the contribution is made which shall be equal to 100% of

15

the first $10,000 contributed during the taxable year by the

16

business firm, and which shall not exceed 90% of the remaining

17

amount contributed during the taxable year by the business firm. 

18

For the fiscal year 2011-2012, the tax credit shall not exceed

19

$200,000 annually per business firm for contributions made to

20

prekindergarten scholarship organizations. For the fiscal year

21

2012-2013, the tax credit shall not exceed $250,000 annually per

22

business firm for contributions made to prekindergarten

23

scholarship organizations.

24

(d)  Combination of tax credits.--A business firm may receive

25

tax credits from the Department of Revenue in any tax year for

26

any combination of contributions under subsection (a), (b) or

27

(c). In no case may a business firm receive tax credits in any

28

tax year in excess of $750,000 for contributions under

29

subsections (a) and (b). In no case shall a business firm

30

receive tax credits in any tax year in excess of $250,000 for

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1

contributions under subsection (c).

2

(e)  Pass-through entity.--

3

(1)  If a pass-through entity does not intend to use all

4

approved tax credits under this section, it may elect in

5

writing to transfer all or a portion of the tax credit to

6

shareholders, members or partners in proportion to the share

7

of the entity's distributive income to which the shareholder,

8

member or partner is entitled for use in the taxable year in

9

which the contribution is made or in the taxable year

10

immediately following the year in which the contribution is

11

made. The election shall designate the year in which the

12

transferred tax credits are to be used and shall be made

13

according to procedures established by the Department of

14

Revenue.

15

(2)  A pass-through entity and a shareholder, member or

16

partner of a pass-through entity shall not claim the tax

17

credit under this section for the same contribution.

18

(3)  The shareholder, member or partner may not carry

19

forward, carry back, obtain a refund of or sell or assign the

20

tax credit.

21

(4)  The shareholder, member or partner may claim the

22

credit on a joint return, but the tax credit may not exceed

23

the separate income of that shareholder, member or partner.

24

(f)  Restriction on applicability of credits.--No tax credits

25

shall be applied against any tax withheld by an employer from an

26

employee under Article III of the Tax Reform Code of 1971.

27

(g)  Time of application for credits.--

28

(1)  Except as provided in paragraph (2), the department

29

may accept applications for tax credits available during a

30

fiscal year no earlier than July 1 of each fiscal year.

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1

(2)  The application of any business firm for tax credits

2

available during a fiscal year as part of the second year of

3

a two-year commitment or as a renewal of a two-year

4

commitment that was fulfilled in the previous fiscal year may

5

be accepted no earlier than May 15 preceding the fiscal year.

6

Section 2525-B.  Limitations.

7

(a)  Amount.--

8

(1)  (i)  For the fiscal year 2011-2012, the total

9

aggregate amount of all tax credits approved shall not

10

exceed $100,000,000.

11

(ii)  Not more than $67,000,000 of the total

12

aggregate amount of all tax credits approved shall be

13

used to provide tax credits for contributions from

14

business firms to scholarship organizations.

15

(iii)  Not more than $25,000,000 of the total

16

aggregate amount of all tax credits approved shall be

17

used to provide tax credits for contributions from

18

business firms to educational improvement organizations.

19

(iv)  Not more than $8,000,000 of the total aggregate

20

amount of all tax credits approved shall be used to

21

provide tax credits for contributions from business firms

22

to prekindergarten scholarship organizations.

23

(2)  (i)  In the fiscal year 2012-2013 and each fiscal

24

year thereafter, the total aggregate amount of all tax

25

credits approved shall not exceed $200,000,000.

26

(ii)  Not more than $120,000,000 of the total

27

aggregate amount of all tax credits approved shall be

28

used to provide tax credits for contributions from

29

business firms to scholarship organizations.

30

(iii)  Not more than $60,000,000 of the total

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1

aggregate amount of all tax credits approved shall be

2

used to provide tax credits for contributions from

3

business firms to educational improvement organizations.

4

(iv)  Not more than $20,000,000 of the total

5

aggregate amount of all tax credits approved shall be

6

used to provide tax credits for contributions from

7

business firms to prekindergarten scholarship

8

organizations.

9

(b)  Activities.--No tax credit shall be approved for

10

activities that are a part of a business firm's normal course of

11

business.

12

(c)  Tax liability.--

13

(1)  Except as provided in paragraph (2), a tax credit

14

granted for any one taxable year may not exceed the tax

15

liability of a business firm.

16

(2)  In the case of a credit granted to a pass-through

17

entity which elects to transfer the credit according to

18

section 2524-B(e), a tax credit granted for any one taxable

19

year and transferred to a shareholder, member or partner may

20

not exceed the tax liability of the shareholder, member or

21

partner.

22

(d)  Use.--A tax credit not used by the applicant in the

23

taxable year the contribution was made or in the year designated

24

by the shareholder, member or partner to whom the credit was

25

transferred under section 2524-B(e) may not be carried forward

26

or carried back and is not refundable or transferable.

27

(e)  Nontaxable income.--A scholarship received by an

28

eligible student or eligible prekindergarten student shall not

29

be considered to be taxable income for the purposes of Article

30

III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax

- 45 -

 


1

Reform Code of 1971.

2

Section 2526-B.  Lists.

3

The Department of Revenue shall provide to the General

4

Assembly, by June 30 of each year, a list of all scholarship

5

organizations, prekindergarten scholarship organizations and

6

educational improvement organizations that receive contributions

7

from business firms granted a tax credit.

8

Section 2527-B.  Guidelines.

9

The department, in consultation with the Department of

10

Education, shall develop guidelines to determine the eligibility

11

of an innovative educational program.

12

(d)  Miscellaneous Provisions

13

Section 2531-B.  Construction.

14

Nothing in this article shall be construed to empower the

15

Commonwealth or any of its agencies or officers or political

16

subdivisions to impose any additional requirements on any

17

nonpublic school which are not otherwise authorized under the

18

laws of this Commonwealth or to require any nonpublic school to

19

accept a student if the nonpublic school does not offer

20

appropriate programs or is not structured or equipped with the

21

necessary facilities to meet the special needs of the student or

22

does not offer a particular program requested.

23

Section 2.  Repeals are as follows:

24

(1)  The General Assembly declares that the repeal under

25

paragraph (2) is necessary to effectuate the addition of

26

Article XXV-B of the act.

27

(2)  Article XVII-F of the act of March 4, 1971 (P.L.6,

28

No.2), known as the Tax Reform Code of 1971, is repealed.

29

Section 3.  The provisions of Article XXV-B of the act are

30

severable. If any provision of that article or its application

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1

to any person or circumstance is held invalid, the invalidity

2

shall not affect other provisions or applications of that

3

article which can be given effect without the invalid provision

4

or application.

5

Section 4.  This act shall take effect in 60 days.

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