PRINTER'S NO. 4131
No. 902 Session of 2006
INTRODUCED BY TIGUE, BELFANTI, BEYER, BOYD, BUXTON, CALTAGIRONE,
CAPPELLI, COHEN, DALEY, FRANKEL, FREEMAN, GEORGE, GOODMAN,
GRUCELA, LEDERER, MANDERINO, MANN, MARSICO, MUNDY, PARKER,
PISTELLA, READSHAW, REICHLEY, ROEBUCK, SANTONI, SCAVELLO,
STABACK, STERN, R. STEVENSON, E. Z. TAYLOR, WALKO, WANSACZ,
YUDICHAK AND McILHATTAN, JUNE 6, 2006
REFERRED TO COMMITTEE ON EDUCATION, JUNE 6, 2006
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," further defining "educational
6 improvement organization"; and expanding educational
7 improvement organization contribution beneficiaries to
8 include nonpublic schools.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 2002-B of the act of March 10, 1949
12 (P.L.30, No.14), known as the Public School Code of 1949,
13 amended December 23, 2003 (P.L.304, No.48), is amended to read:
14 Section 2002-B. Definitions.
15 The following words and phrases when used in this article
16 shall have the meanings given to them in this section unless the
17 context clearly indicates otherwise:
18 "Business firm." An entity authorized to do business in this
19 Commonwealth and subject to taxes imposed under Article IV, VI,
1 VII, VII-A, VIII, VIII-A, IX or XV of the act of March 4, 1971
2 (P.L.6, No.2), known as the Tax Reform Code of 1971.
3 "Contribution." A donation of cash, personal property or
4 services the value of which is the net cost of the donation to
5 the donor or the pro rata hourly wage, including benefits, of
6 the individual performing the services.
7 "Department." The Department of Community and Economic
8 Development of the Commonwealth.
9 "Educational improvement organization." A nonprofit entity
10 which:
11 (1) is exempt from Federal taxation under section
12 501(c)(3) of the Internal Revenue Code of 1986 (Public Law
13 99-514, 26 U.S.C. § 1 et seq.); and
14 (2) contributes at least 80% of its annual receipts as
15 grants to a public school for innovative educational
16 programs.
17 For purposes of this definition, a nonprofit entity
18 "contributes" its annual cash receipts when it expends or
19 otherwise irrevocably encumbers those funds for expenditure
20 during the then current fiscal year of the nonprofit entity or
21 during the next succeeding fiscal year of the nonprofit entity.
22 "Eligible pre-kindergarten student." A student who is
23 enrolled in a pre-kindergarten program and is a member of a
24 household with an annual household income of not more than
25 $50,000. An income allowance of $10,000 shall be allowed for
26 each eligible student and dependent member of the household.
27 "Eligible student." A school-age student who is enrolled in
28 a school and is a member of a household with an annual household
29 income of not more than $50,000. An income allowance of $10,000
30 shall be allowed for each eligible student and dependent member
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1 of the household.
2 "Household." An individual living alone or with the
3 following: a spouse, parent and their unemancipated minor
4 children; and other unemancipated minor children who are related
5 by blood or marriage; or other adults or unemancipated minor
6 children living in the household who are dependent upon the
7 individual.
8 "Household income." All moneys or property received of
9 whatever nature and from whatever source derived. The term does
10 not include the following:
11 (1) Periodic payments for sickness and disability other
12 than regular wages received during a period of sickness or
13 disability.
14 (2) Disability, retirement or other payments arising
15 under workers' compensation acts, occupational disease acts
16 and similar legislation by any government.
17 (3) Payments commonly recognized as old-age or
18 retirement benefits paid to persons retired from service
19 after reaching a specific age or after a stated period of
20 employment.
21 (4) Payments commonly known as public assistance or
22 unemployment compensation payments by a governmental agency.
23 (5) Payments to reimburse actual expenses.
24 (6) Payments made by employers or labor unions for
25 programs covering hospitalization, sickness, disability or
26 death, supplemental unemployment benefits, strike benefits,
27 Social Security and retirement.
28 (7) Compensation received by United States servicemen
29 serving in a combat zone.
30 "Innovative educational program." An advanced academic or
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1 similar program that is not part of the regular academic program
2 of a public school but that enhances the curriculum or academic
3 program of the public school.
4 "Pre-kindergarten 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 which provides a minimum of two hours of
8 instructional and developmental activities per day at least 60
9 days per school year.
10 "Pre-kindergarten scholarship organization." A nonprofit
11 entity which:
12 (1) either is exempt from Federal taxation under section
13 501(c)(3) of the Internal Revenue Code of 1986 (Public Law
14 99-514, 26 U.S.C. § 1 et seq.) or is operated as a separate
15 segregated fund by a scholarship organization that has been
16 qualified under section 2003-B; and
17 (2) contributes at least 80% of its annual cash receipts
18 to a pre-kindergarten scholarship program by expending or
19 otherwise irrevocably encumbering those funds for
20 distribution during the then current fiscal year of the
21 organization or during the next succeeding fiscal year of the
22 organization.
23 "Pre-kindergarten scholarship program." A program to provide
24 tuition to eligible pre-kindergarten students to attend a pre-
25 kindergarten program operated by or in conjunction with a school
26 located in this Commonwealth and that includes an application
27 and review process for the purpose of making awards to eligible
28 pre-kindergarten students and awards scholarships to eligible
29 pre-kindergarten students without limiting availability to only
30 students of one school.
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1 "Public school." A public pre-school where compulsory
2 attendance requirements do not apply or a public kindergarten,
3 elementary school or secondary school at which the compulsory
4 attendance requirements of this Commonwealth may be met and
5 which meets the applicable requirements of Title VI of the Civil
6 Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).
7 "Scholarship organization." A nonprofit entity which:
8 (1) is exempt from Federal taxation under section
9 501(c)(3) of the Internal Revenue Code of 1986 (Public Law
10 99-514, 26 U.S.C. § 1 et seq.); and
11 (2) contributes at least 80% of its annual cash receipts
12 to a scholarship program.
13 For purposes of this definition, a nonprofit entity
14 "contributes" its annual cash receipts to a scholarship program
15 when it expends or otherwise irrevocably encumbers those funds
16 for distribution during the then current fiscal year of the
17 nonprofit entity or during the next succeeding fiscal year of
18 the nonprofit entity.
19 "Scholarship program." A program to provide tuition to
20 eligible students to attend a school located in this
21 Commonwealth. A scholarship program must include an application
22 and review process for the purpose of making awards to eligible
23 students. The award of scholarships to eligible students shall
24 be made without limiting availability to only students of one
25 school.
26 "School." A public or nonpublic pre-kindergarten,
27 kindergarten, elementary school or secondary school at which the
28 compulsory attendance requirements of the Commonwealth may be
29 met and which meets the applicable requirements of Title VI of
30 the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).
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1 "School age." Children from the earliest admission age to a
2 school's pre-kindergarten or kindergarten program or, when no
3 pre-kindergarten or kindergarten program is provided, the
4 school's earliest admission age for beginners, until the end of
5 the school year the student attains 21 years of age or
6 graduation from high school, whichever occurs first.
7 Section 2. Section 2003-B(d) of the act, amended July 13,
8 2005 (P.L.226, No.46), is amended to read:
9 Section 2003-B. Qualification and application.
10 * * *
11 (d) Educational improvement organization.--
12 (1) An application submitted by an educational
13 improvement organization must describe its proposed
14 innovative educational program or programs in a form
15 prescribed by the department. The department shall consult
16 with the Department of Education as necessary. The department
17 shall review and approve or disapprove the application. In
18 order to be eligible to participate in the program
19 established under this article, an educational improvement
20 organization must agree to annually report the following
21 information to the department by December 1, 2005, and
22 September 1 of each year thereafter:
23 (i) The name of the innovative educational program
24 or programs and the total amount of the grant or grants
25 made to those programs during the immediately preceding
26 school year.
27 (ii) A description of how each grant was utilized
28 during the immediately preceding school year and a
29 description of any demonstrated or expected innovative
30 educational improvements.
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1 (iii) The names of the [public] schools and school
2 districts where innovative educational programs that
3 received grants during the immediately preceding school
4 year were implemented.
5 (iv) Where the educational improvement organization
6 collects information on a county-by-county basis, the
7 total number and the total amount of grants made during
8 the immediately preceding school year for programs at
9 [public] schools in each county in which the educational
10 improvement organization made grants.
11 (2) The information required under paragraph (1) shall
12 be submitted on a form provided by the department. No later
13 than September 1, 2005, and May 1 of each year thereafter,
14 the department shall annually distribute such sample forms,
15 together with the forms on which the reports are required to
16 be made, to each listed educational improvement organization.
17 (3) The department may not require any other information
18 to be provided by educational improvement organizations,
19 except as expressly authorized in this article.
20 * * *
21 Section 3. This act shall take effect in 60 days.
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