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                                                       PRINTER'S NO. 317

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 305 Session of 2005


        INTRODUCED BY PILEGGI, BRIGHTBILL, ERICKSON, PICCOLA, KITCHEN
           AND ORIE, FEBRUARY 15, 2005

        REFERRED TO EDUCATION, FEBRUARY 15, 2005

                                     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 providing for free
     6     transportation of students; and providing for education
     7     choice.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  Section 1361 of the act of March 10, 1949
    11  (P.L.30, No.14), known as the Public School Code of 1949,
    12  amended May 11, 1979 (P.L.26, No.7), is amended to read:
    13     Section 1361.  When Provided.--(1)  The board of school
    14  directors in any school district may, out of the funds of the
    15  district, provide for the free transportation of any resident
    16  pupil to and from the kindergarten, elementary school, or
    17  secondary school in which he is lawfully enrolled, provided that
    18  such school is not operated for profit and is located within the
    19  district boundaries or outside the district boundaries at a
    20  distance not exceeding ten miles by the nearest public highway,

     1  except that such ten-mile limit shall not apply to area
     2  vocational technical schools which regularly serve eligible
     3  district pupils or to special schools and classes approved by
     4  the Department of Education, and to and from any points within
     5  or without the Commonwealth in order to provide field trips for
     6  any purpose connected with the educational pursuits of the
     7  pupils. When provision is made by a board of school directors
     8  for the transportation of public school pupils to and from such
     9  schools or to and from any points within or without the
    10  Commonwealth in order to provide field trips as herein provided,
    11  the board of school directors shall also make identical
    12  provision for the free transportation of:
    13     (i)  students who are resident within the district and
    14  regularly attend a public school or charter school outside the
    15  boundaries of their district of residence at a distance not
    16  exceeding ten (10) miles by the nearest public highway to and
    17  from such schools or to and from any points within or without
    18  this Commonwealth in order to provide field trips as herein
    19  provided; and
    20     (ii)  pupils who regularly attend nonpublic kindergarten,
    21  elementary and high schools not operated for profit to and from
    22  such schools or to and from any points within or without the
    23  Commonwealth in order to provide field trips as herein provided.
    24  Such transportation of pupils attending nonpublic schools shall
    25  be provided during regular school hours on such dates and
    26  periods that the nonpublic school not operated for profit is in
    27  regular session, according to the school calendar officially
    28  adopted by the directors of the same in accordance with
    29  provisions of law. The board of school directors shall provide
    30  such transportation whenever so required by any of the
    20050S0305B0317                  - 2 -     

     1  provisions of this act or of any other act of Assembly.
     2     (2)  The board of school directors in any school district
     3  may, if the board deems it to the best interest of the school
     4  district, for the purposes of transporting pupils as required or
     5  authorized by any of the provisions of this act or of any other
     6  act of the Assembly, appropriate funds for urban common carrier
     7  mass transportation purposes from current revenues to urban
     8  common carrier mass transportation authorities to assist the
     9  authorities to meet costs of operation, maintenance, capital
    10  improvements, and debt service. Said contributions shall not be
    11  subject to reimbursement by the Commonwealth of Pennsylvania.
    12     (3)  The State Board of Education shall adopt regulations,
    13  including qualifications of school bus drivers, to govern the
    14  transportation of school pupils.
    15     Section 2.  The act is amended by adding an article to read:
    16                           ARTICLE XIII-B
    17                          EDUCATION CHOICE
    18  Section 1301-B.   Legislative findings.
    19     The General Assembly finds that:
    20         (1)  Parents are best suited to choose the most
    21     appropriate means of education for their school-age children.
    22         (2)  Providing diverse educational opportunities for the
    23     children of this Commonwealth is a civic imperative and a
    24     matter of serious concern.
    25         (3)  The importance of quality education and the need to
    26     maintain and operate an effective system of education make it
    27     imperative to provide for the increased availability of
    28     diverse opportunities, including both public and nonpublic
    29     programs of education, to benefit all citizens of this
    30     Commonwealth.
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     1         (4)  Many disadvantaged school-age residents of this
     2     Commonwealth enjoy comparatively fewer educational
     3     opportunities or options than school-age residents who
     4     possess greater economic means.
     5         (5)  The accessibility to families of nonpublic
     6     educational alternatives decreases the burdens on the
     7     Commonwealth and local school districts and increases the
     8     range of educational choices available to Pennsylvania
     9     families, thus providing a benefit to all citizens of this
    10     Commonwealth.
    11         (6)  The program of educational choice provided in this
    12     article is one element of an overall program of providing
    13     funds to assure the availability of educational opportunities
    14     for students enrolled in the schools of this Commonwealth. A
    15     comparatively far greater proportion of public funds are and,
    16     on implementation of an educational choice program, will
    17     continue to be devoted to the benefit of students enrolled in
    18     the public schools of this Commonwealth. Therefore, an
    19     educational choice program should be viewed as an integral
    20     part of its overall program of educational funding and not as
    21     an isolated individual program.
    22         (7)  A program of financial assistance to enhance
    23     educational choice in this Commonwealth as one element of the
    24     Commonwealth's plan for funding of diverse educational
    25     opportunities will greatly aid efforts to equalize
    26     educational opportunities for the citizens of this
    27     Commonwealth, will better prepare Commonwealth citizens to
    28     compete for employment opportunities, will foster development
    29     of a more capable and better-educated work force and will
    30     better enable the Commonwealth to fulfill its obligation of
    20050S0305B0317                  - 4 -     

     1     providing children the opportunity of receiving a quality
     2     education.
     3  Section 1302-B.  Definitions.
     4     The following words and phrases when used in this article
     5  shall have the meanings given to them in this section unless the
     6  context clearly indicates otherwise:
     7     "Basic education funding."  Subsidy payments to school
     8  districts under section 2502.39 (relating to basic education
     9  funding for 2000-2001 school year) and any supplement thereto.
    10     "Department."  The Department of Education of the
    11  Commonwealth.
    12     "Dependent."  An individual claimed as a personal exemption
    13  by the taxpayer for Federal income tax purposes. The term shall
    14  have the same meaning as that contained in section 152 of the
    15  Federal Internal Revenue Code of 1986 (Public Law 99-514, 26
    16  U.S.C. § 152).
    17     "Educational opportunity grant" or "grant".  A grant awarded
    18  to the parents of an eligible grant recipient pursuant to this
    19  article.
    20     "Eligible district."  A school district having a minimum of
    21  35% of school-age children eligible for free or reduced-price
    22  meal programs under the National School Lunch Act (60 Stat. 230,
    23  42 U.S.C. § 1751, et seq.) in any of the prior three years.
    24     "Eligible grant recipient."  A school-age resident of an
    25  eligible district located in this Commonwealth who attends or is
    26  about to attend a public or nonpublic full-time kindergarten,
    27  part-time kindergarten or grades one, two or three at a public
    28  or nonpublic elementary school within this Commonwealth on a
    29  tuition-paying basis and whose parents received taxable income
    30  which did not exceed the limits prescribed in section 1304-
    20050S0305B0317                  - 5 -     

     1  B(b)(2) (relating to educational opportunity grants).
     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 on 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 a United States serviceman
    29     serving in a combat zone.
    30     "Nonpublic" or "nonpublic school."  Any school other than a
    20050S0305B0317                  - 6 -     

     1  public school located within this Commonwealth where a
     2  Commonwealth resident may legally fulfill the compulsory school
     3  attendance requirements of this act and which meets the
     4  applicable requirements of Title VI of the Civil Rights Act of
     5  1964 (Public Law 88-352, 78 Stat. 241). The term also includes a
     6  full-time or part-time kindergarten program operated by a
     7  nonpublic school.
     8     "Nonresident student."  A student attending a public school
     9  outside of his or her district of residence.
    10     "Parent" or "parents."  A Commonwealth resident who is a
    11  parent or guardian of or a person in parental relation to a
    12  school-age child.
    13     "School."  Any public or nonpublic elementary school located
    14  within this Commonwealth where a Commonwealth resident may
    15  legally fulfill the compulsory school attendance requirements of
    16  this act, which meets the applicable requirements of Title VI of
    17  the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241)
    18  and which does not refuse to enroll any student because of race,
    19  color, national or ethnic origin. The term also includes a full-
    20  time or part-time kindergarten program operated by a school. The
    21  term does not include an approved private school as provided for
    22  in section 1376 (relating to cost of tuition and maintenance of
    23  certain exceptional children in approved institutions).
    24     "School-age."  The period of a child's life from the earliest
    25  admission age to a school's kindergarten program until the age
    26  of 21 years or graduation from high school, whichever occurs
    27  first.
    28     "Student."  A school-age resident of an eligible district
    29  located in this Commonwealth who attends or is about to attend a
    30  full-time kindergarten, a part-time kindergarten or grades one,
    20050S0305B0317                  - 7 -     

     1  two or three at an elementary school within this Commonwealth.
     2  Section 1303-B.  Interdistrict choice.
     3     (a)  Choice of schools permitted.--Beginning with the 2005-
     4  2006 school year every student who resides in an eligible
     5  district shall be permitted to attend the public school selected
     6  by the student's parents at the kindergarten, first grade,
     7  second grade or third grade level unless:
     8         (1)  the public school selected has no additional
     9     attendance slots available and the district so notifies the
    10     department and the student within the time limitations
    11     established by the department for this purpose;
    12         (2)  the student's attendance would place either the
    13     receiving school district or the student's district of
    14     residence in violation of a valid and binding desegregation
    15     order;
    16         (3)  the public school requested does not offer
    17     appropriate programs or is not structured or equipped with
    18     the necessary facilities to meet the special needs of the
    19     student or does not offer a particular program requested;
    20         (4)  the student has been expelled or is in the process
    21     of being expelled pursuant to section 1318 (relating to
    22     suspension and expulsion of pupils) and applicable
    23     regulations of the State Board of Education; or
    24         (5)  the student does not meet the established
    25     eligibility criteria for participation in magnet schools or
    26     in schools with specialized academic missions.
    27     (b)  Application.--
    28         (1)  Not later than March 1, 2005, the parents of a
    29     school-age student who is attending or about to attend
    30     kindergarten or grades one, two or three at a public school
    20050S0305B0317                  - 8 -     

     1     may apply to up to three public schools which the student
     2     wishes to attend during the 2005-2006 school year. The
     3     application shall be on a form provided by the department. In
     4     subsequent years, the deadline for filing applications shall
     5     be March 1 preceding the school term which commences in that
     6     year.
     7         (2)  The school district shall notify the parent not
     8     later than May 1 preceding the school term which commences in
     9     that year whether or not the application has been accepted.
    10     If the application is not made in a timely fashion or cannot
    11     be approved pursuant to subsection (a), the student's
    12     district of residence shall determine the public school
    13     within that district to which the student shall be assigned
    14     pursuant to this article.
    15     (c)  Commonwealth payments.--The Commonwealth shall make
    16  payment pursuant to the schedule contained in section 2517
    17  (relating to payments) to each public school district, area
    18  vocational-technical school or intermediate unit which accepts a
    19  nonresident student under the provisions of this section in the
    20  following manner:
    21         (1)  The Commonwealth shall pay on a current year basis
    22     from current year appropriations to each school district,
    23     area vocational-technical school or intermediate unit which
    24     accepts a nonresident student, on a tuition basis, an amount
    25     equal to the greater of the per pupil basic education funding
    26     of the student's school district of residence or of the
    27     receiving school district. No student attending a public
    28     school outside the student's district of residence shall be
    29     included in the average daily membership for purposes of
    30     determining basic education funding under this act in either
    20050S0305B0317                  - 9 -     

     1     the student's school district of residence or the receiving
     2     school district.
     3         (2)  Notwithstanding paragraph (1), a student who is
     4     enrolled in a public school and who receives a grant under
     5     this article to transfer to a public or nonpublic school not
     6     operated by that student's district of residence shall
     7     continue to be included by the district of residence in its
     8     average daily membership for purposes of determining basic
     9     education funding under this act through the 2008-2009 school
    10     year.
    11         (3)  For a nonresident student who is a grant recipient
    12     and who is defined as a "child with exceptionalities" under
    13     section 1371 (relating to definition of children with
    14     exceptionalities; reports; examination), the district of
    15     residence shall not be required to pay more for services
    16     provided to the student by the receiving district than the
    17     difference between the current year cost of the services had
    18     the student remained in the district of residence and the sum
    19     of the grant plus the per pupil basic education funding level
    20     following the grant recipient. The district of residence
    21     shall provide the receiving district with documentation of
    22     the prior year's cost of services provided to the student and
    23     an estimate of the cost of providing those services in the
    24     current year had the student remained in the district of
    25     residence. Any cost not covered by this funding shall be
    26     borne by the receiving school district.
    27         (4)  For a nonresident student who is not a grant
    28     recipient and who is defined as a "child with
    29     exceptionalities" under section 1371, the district of
    30     residence shall not be required to pay more for services
    20050S0305B0317                 - 10 -     

     1     provided to the student by the receiving district than the
     2     difference between the current year cost of the services had
     3     the student remained in the district of residence and the per
     4     pupil basic education funding level following the student.
     5     The district of residence shall provide the receiving
     6     district with documentation of the prior year's cost of
     7     services provided to the student and an estimate of the cost
     8     of providing those services in the current year had the
     9     student remained in the district of residence. Any cost not
    10     covered by this funding shall be borne by the receiving
    11     school district.
    12         (5)  A student receiving services under paragraph (3) or
    13     (4) shall be included in the average daily membership of the
    14     student's district of residence for the purpose of
    15     determining special education funding pursuant to section
    16     2509.5 (relating to special education payments to school
    17     districts).
    18     (d)  Credits against public school tuition.--
    19         (1)  In addition to the grant awarded to the parents of
    20     an eligible grant recipient attending a public school outside
    21     the grant recipient's district of residence, an amount equal
    22     to the greater of the per pupil basic education funding in
    23     the grant recipient's district of residence or of the
    24     receiving school district shall be credited toward the
    25     tuition charged to that student by the receiving district.
    26         (2)  Should the grant award plus the basic education
    27     funding credit to be paid under this subsection exceed the
    28     tuition charge of the receiving school district, the grant
    29     award shall be reduced by the amount in excess of the tuition
    30     charge.
    20050S0305B0317                 - 11 -     

     1         (3)  Except for those students who receive grants under
     2     section 1304-B(b)(6) (relating to educational opportunity
     3     grants), should the grant award plus the basic education
     4     funding credit to be paid under this subsection not be
     5     sufficient to meet the tuition charge of the receiving school
     6     district, an amount equal to 5% of the balance of the charge
     7     still remaining shall be payable by the eligible grant
     8     recipient's parents and, when paid, shall be treated, along
     9     with the grant and basic education funding credit, as payment
    10     in full of the receiving district's tuition charge.
    11         (4)  In the case of a student whose parents received
    12     taxable income in excess of the maximum income limit
    13     contained in section 1304-B(b)(2), during the immediately
    14     preceding calendar year, only the basic education funding
    15     credit authorized by this subsection shall be applied toward
    16     the tuition charge of the receiving school district.
    17         (5)  The student's parents shall pay an amount equal to
    18     40% of the balance of the charge still remaining which, when
    19     paid, shall be treated as payment in full of the receiving
    20     district's tuition charge.
    21     (e)  Attendance slots.--
    22         (1)  Each school district, in its sole discretion, shall
    23     determine by resolution the number of available attendance
    24     slots on an annual basis at the kindergarten, first grade,
    25     second grade and third grade levels at each of its public
    26     schools and shall report that number to the department each
    27     year by a date to be established by the department. In
    28     determining and allocating the number of attendance slots
    29     available at those grade levels, each school district shall
    30     make provision for the accommodation of any resident of the
    20050S0305B0317                 - 12 -     

     1     district, giving first preference to students residing within
     2     a school's attendance boundary, who desires to attend a
     3     particular public school in the district and, after making
     4     provision for the attendance of the remaining resident
     5     students, shall thereafter give first preference to
     6     nonresident students who were in attendance in the district's
     7     schools during the immediately preceding school term.
     8         (2)  If sufficient slots are not available to accommodate
     9     nonresident students who were in attendance in the district's
    10     schools during the immediately preceding school term,
    11     available slots shall be allocated through a publicly
    12     conducted lottery among these students.
    13         (3)  Should any attendance slots remain available after
    14     making provision for nonresident students who were in
    15     attendance during the preceding term, the slots shall be
    16     filled by the superintendent or his designee through a
    17     publicly conducted lottery from the pool of all remaining
    18     qualified applicants who have made timely application.
    19         (4)  With the exception of magnet schools or schools with
    20     specialized academic missions, selection procedures shall not
    21     include eligibility criteria in the allocation of available
    22     slots.
    23     (f)  Enrollments.--Enrollments may be renewed each school
    24  year subsequent to the completion of grade three so long as the
    25  student remains enrolled in a public elementary or secondary
    26  school and otherwise meets the requirements for eligibility
    27  under this article.
    28  Section 1304-B.  Educational opportunity grants.
    29     (a)  Annual appropriations.--Educational opportunity grants
    30  authorized pursuant to this section shall be made from annual
    20050S0305B0317                 - 13 -     

     1  appropriations made by the General Assembly to the department
     2  for that purpose. In the event that insufficient moneys are
     3  appropriated in any fiscal year to provide grants to all parents
     4  of eligible grant recipients in the full amount authorized, the
     5  department shall make pro rata reductions in the amount of the
     6  grant provided to each parent. The total amount of grants
     7  provided in any fiscal year shall be limited to the amount of
     8  money appropriated for that fiscal year.
     9     (b)  Administration.--The department shall administer a
    10  program of educational opportunity grant awards to be made
    11  annually to the parents of each eligible grant recipient subject
    12  to the following terms, conditions and payment schedules:
    13         (1)  Grants shall be made only for the payment of costs
    14     of tuition at a school within this Commonwealth. Grants shall
    15     not be made for a home education program provided pursuant to
    16     section 1327.1 (relating to home education program).
    17         (2)  Except for grants made to students under paragraph
    18     (6), the following percentage classifications shall apply to
    19     eligibility for a grant award in the maximum amount
    20     authorized under paragraphs (3) and (4):
    21             (i)  100% of the maximum grant shall be available to
    22         eligible grant recipients whose parents had a household
    23         income which did not exceed $25,000;
    24             (ii)  95% of the maximum grant shall be available to
    25         eligible grant recipients whose parents had a household
    26         income which did not exceed $30,000;
    27             (iii)  90% of the maximum grant shall be available to
    28         eligible grant recipients whose parents had a household
    29         income which did not exceed $35,000;
    30             (iv)  85% of the maximum grant shall be available to
    20050S0305B0317                 - 14 -     

     1         eligible grant recipients whose parents had a household
     2         income which did not exceed $40,000;
     3             (v)  80% of the maximum grant shall be available to
     4         eligible grant recipients whose parents had a household
     5         income which did not exceed $45,000;
     6             (vi)  75% of the maximum grant shall be available to
     7         eligible grant recipients whose parents had a household
     8         income which did not exceed $50,000;
     9             (vii)  70% of the maximum grant shall be available to
    10         eligible grant recipients whose parents had a household
    11         income which did not exceed $55,000;
    12             (viii)  65% of the maximum grant shall be available
    13         to eligible grant recipients whose parents had a
    14         household income which did not exceed $60,000;
    15             (ix)  60% of the maximum grant shall be available to
    16         eligible grant recipients whose parents had a household
    17         income which did not exceed $65,000;
    18             (x)  55% of the maximum grant shall be available to
    19         eligible grant recipients whose parents had a household
    20         income which did not exceed $70,000;
    21             (xi)  50% of the maximum grant shall be available to
    22         eligible grant recipients whose parents had a household
    23         income which did not exceed $75,000;
    24     for the school year 2008-2009 and each year thereafter, the
    25     household income limits for eligibility for each percentage
    26     classification of the maximum grant amount shall be adjusted
    27     by the department to reflect any percentage change in the
    28     Consumer Price Index for All Urban Consumers (CPI-U)
    29     developed and updated by the Bureau of Labor Statistics of
    30     the United States Department of Labor. The department shall
    20050S0305B0317                 - 15 -     

     1     publish the adjustment as a notice in the Pennsylvania
     2     Bulletin.
     3         (3)  Except for grants made to students under paragraph
     4     (6), for the school years 2005-2006 through 2009-2010, the
     5     maximum grant shall be the lesser of $3,000 or an amount
     6     equal to 95% of the actual amount of tuition paid or to be
     7     paid:
     8             (i)  for an eligible grant recipient enrolled in a
     9         full-day kindergarten program meeting the requirements
    10         relating to minimum hours or days of instruction as
    11         provided in section 1327 (relating to compulsory school
    12         attendance); or
    13             (ii)  for an eligible grant recipient enrolled in
    14         grades one through three.
    15         (4)  Except for grants made to students under paragraph
    16     (6), for the school years 2005-2006 through 2009-2010, the
    17     maximum grant shall be the lesser of $1,500 or an amount
    18     equal to 95% of the actual amount of tuition paid or to be
    19     paid for an eligible grant recipient enrolled in a half-day
    20     kindergarten program meeting the requirements of this act
    21     applicable to kindergarten.
    22         (5)  For each school year subsequent to 2009-2010, the
    23     maximum amount of a grant shall be increased by a percentage
    24     factor equal to the percentage increase in the Consumer Price
    25     Index for All Urban Consumers (CPI-U) for the Pennsylvania,
    26     New Jersey, Delaware and Maryland area, officially reported
    27     by the United States Department of Labor, Bureau of Labor
    28     Statistics, immediately prior to the date the adjustment is
    29     to take place.
    30         (6)  For students who are eligible to receive federally
    20050S0305B0317                 - 16 -     

     1     subsidized free school meals, the grant shall be the greater
     2     of:
     3             (i)  the maximum grant allowed under paragraphs (3),
     4         (4) and (5); or
     5             (ii)  the per pupil basic funding in the public
     6         schools of the student's district of residence.
     7         (7)  (i)  Grants made to students who are eligible under
     8         paragraph (6) may not exceed the full amount of tuition
     9         charged by the school which the student attends.
    10             (ii)  The limitation of the grant to 95% of the
    11         actual amount of tuition paid or to be paid as set forth
    12         in paragraphs (3) and (4) shall not apply to students
    13         receiving grants under this paragraph.
    14         (8)  Grants may be renewed each school year subsequent to
    15     the completion of grade three so long as the student remains
    16     enrolled in a public or nonpublic elementary or secondary
    17     school on a tuition-paying basis and otherwise meets the
    18     requirements for grant eligibility under this article.
    19  Section 1305-B.  Grant administration.
    20     (a)  Guidelines.--
    21         (1)  The department shall prepare guidelines establishing
    22     an application form and approval process, standards for
    23     verification as to accuracy of application information,
    24     confirmation of attendance by grant recipients, restrictive
    25     endorsement of grant award checks to the school chosen by the
    26     parents, pro rata refunds of grants for students who withdraw
    27     during the school year, repayment of refunded grants to the
    28     department and reasonable deadline dates for submission of
    29     grant applications and shall announce the award of grants no
    30     later than 30 days prior to the beginning of the school term
    20050S0305B0317                 - 17 -     

     1     for which the grants will be utilized.
     2         (2)  Grants shall be paid to the parents of an eligible
     3     grant recipient on receipt of written confirmation of
     4     enrollment from the recipient's school of choice. Grant
     5     awards shall be paid by checks which may only be endorsed by
     6     the parents for payment of tuition at the school designated
     7     in the grant application.
     8         (3)  In the event a grant recipient is no longer enrolled
     9     prior to the completion of the school term, the school shall
    10     send written notice thereof to the department.
    11         (4)  The guidelines shall be published as a statement of
    12     policy in the Pennsylvania Bulletin. A copy of the guidelines
    13     shall be mailed by the department to each school district and
    14     nonpublic school in this Commonwealth.
    15     (b)  Adjudications.--Adjudications rendered by the department
    16  pursuant to this section shall be subject to 2 Pa.C.S. (relating
    17  to administrative law and procedure).
    18     (c)  Procedures.--
    19         (1)  The department shall establish procedures for
    20     determination of acceptance and notification dates for the
    21     admission by school districts of students to their school of
    22     choice, for establishment and operation of the grant program,
    23     for basic education funding credits and payments authorized
    24     in this article and for assisting school districts in
    25     developing and distributing public information concerning the
    26     educational choice programs.
    27         (2)  In addition to any other public information process
    28     selected by the department for dissemination of information,
    29     departmental procedures shall be published as a statement of
    30     policy in the Pennsylvania Bulletin and shall be mailed by
    20050S0305B0317                 - 18 -     

     1     the department to each school in this Commonwealth.
     2     (d)  Refunds; interest.--
     3         (1)  (i)  In the event a grant recipient is no longer
     4         enrolled in a school and is not subsequently timely
     5         enrolled in another program of full-day kindergarten,
     6         half-day kindergarten or elementary or secondary
     7         education and the parents of the grant recipient fail to
     8         submit the full amount of a pro rata grant refund payment
     9         to the department within 30 days of receipt of
    10         notification that such payment is due, the parents of the
    11         eligible grant recipient shall be subject to imposition
    12         by the Secretary of Education of interest on the grant
    13         refund payment to be calculated from the due date at the
    14         rate determined by the Secretary of Revenue for interest
    15         payments on overdue taxes or the refund of taxes as
    16         provided in sections 806 and 806.1 of the act of April 9,
    17         1929 (P.L.343, No.176), known as The Fiscal Code, and any
    18         subsequent amendments to those sections.
    19             (ii)  Should the parents of the grant recipient fail
    20         to submit the full amount of the refund to the department
    21         within 180 days of written demand therefor, the
    22         department may also impose a civil penalty not to exceed
    23         the full amount of the annual grant award made to the
    24         parents and disqualification from future eligibility for
    25         an educational opportunity grant.
    26         (2)  In addition to the penalties provided under
    27     paragraph (1), any person who fraudulently submits a grant
    28     application or who knowingly falsifies material information
    29     on a grant application shall be subject to imposition by the
    30     Secretary of Education of a civil penalty of up to $1,000 and
    20050S0305B0317                 - 19 -     

     1     shall be disqualified from future participation in the
     2     educational opportunity grant program.
     3     (e)  No authority of State board.--Notwithstanding any other
     4  provisions of law to the contrary, the program and procedures
     5  and guidelines authorized by this article shall not be subject
     6  to review, regulation or approval by the State Board of
     7  Education.
     8     (f)  No additional requirements.--Nothing in this article
     9  shall be construed to empower the Commonwealth or any of its
    10  agencies or officers or political subdivisions to impose any
    11  additional requirements on any nonpublic school which are not
    12  otherwise authorized under the laws of this Commonwealth or to
    13  require any nonpublic school to accept eligible grant recipients
    14  if the nonpublic school does not offer appropriate programs or
    15  is not structured or equipped with the necessary facilities to
    16  meet the special needs of the student or does not offer a
    17  particular program requested.
    18     (g)  Nontaxable.--Educational opportunity grant funds or
    19  school district tuition grants received by a parent under the
    20  authority of this article shall not be considered to be taxable
    21  income for purposes of Article III of the act of March 4, 1971
    22  (P.L.6, No.2), known as the Tax Reform Code of 1971, nor shall
    23  such grants constitute financial assistance or appropriations to
    24  the educational institution attended by the grant recipient.
    25     (h)  Optional enrollment.--No nonpublic school may be
    26  compelled to accept or enroll eligible grant recipients.
    27     (i)  Equal tuition.--No school may charge a grant recipient a
    28  higher tuition than that student would have been charged without
    29  having received a grant.
    30     (j)  Study commission.--A study commission shall conduct a
    20050S0305B0317                 - 20 -     

     1  study of the program enacted in this article and shall report
     2  its findings to the General Assembly following the 2009-2010
     3  school year. The commission shall be composed of two persons
     4  appointed by each of the following:  the Governor, the President
     5  pro tempore of the Senate, the Speaker of the House of
     6  Representatives and the Secretary of Education.
     7     (k)  Severability.--The provisions of this article are
     8  severable. If any provision of this article or its application
     9  to any person or circumstances is held invalid, the invalidity
    10  shall not affect other provisions or applications of this
    11  article which can be given effect without the invalid provision
    12  or application.
    13     (l)  Eligible dates.--If the award of educational opportunity
    14  grants to parents of students attending public or nonpublic
    15  schools is enjoined or otherwise delayed by a court of competent
    16  jurisdiction, the schedules of dates established under this
    17  article regarding eligibility for and administration of the
    18  school choice program shall begin with the school year
    19  commencing after:
    20         (1)  If an injunction or delay occurs in a court of this
    21     Commonwealth, final determination of the United States
    22     Supreme Court or an intermediate appellate court of this
    23     Commonwealth, so long as in the latter case, further review
    24     has been either precluded or denied.
    25         (2)  If an injunction occurs in Federal court, final
    26     determination by the United States Supreme Court or the Third
    27     Circuit Court or Appeals, so long as in the latter case
    28     further appeal or review has been precluded or denied.
    29  Section 1306-B.  Tuition grants by school districts.
    30     (a)  Program established.--The board of school directors in
    20050S0305B0317                 - 21 -     

     1  any school district may, out of funds received from the State
     2  for educational purposes, establish a program of tuition grants
     3  to provide for the education of school-age children who reside
     4  in that district and who attend a public or nonpublic school on
     5  a tuition-paying basis.
     6     (b)  Guidelines.--
     7         (1)  The board of school directors shall prepare
     8     guidelines establishing an application form and approval
     9     process, standards for verification as to the accuracy of
    10     application information, confirmation of attendance by grant
    11     recipients, pro rata refunds of grants for students who
    12     withdrew during the school year, repayment of refunded grants
    13     to the school district and reasonable deadline dates for
    14     submission of grant applications and shall announce the award
    15     of grants no later than August 15 of the school year in which
    16     the grants will be utilized.
    17         (2)  Grants shall be paid to the parents of an eligible
    18     grant recipient upon receipt of written confirmation of
    19     enrollment from the recipient's school of choice.
    20         (3)  In the event a grant recipient is no longer enrolled
    21     prior to the completion of the school term, the school shall
    22     send written notice thereof to the school district.
    23     Section 3.  The Department of Education shall, within 30 days
    24  of the effective date of this section, adopt and publish such
    25  guidelines and procedures as may be required to fully implement
    26  Article XIII-B of the act. The initial guidelines and
    27  procedures, and any amendments thereto, shall be exempt from the
    28  requirements of the act of June 25, 1982 (P.L.633, No.181),
    29  known as the Regulatory Review Act.
    30     Section 4.  This act shall take effect immediately.
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