PRINTER'S NO. 1002
No. 774 Session of 2007
INTRODUCED BY SHIMKUS, BRENNAN, CALTAGIRONE, DALLY, DePASQUALE,
GEORGE, HARHAI, MANN, MARKOSEK, MUNDY, MUSTIO, PICKETT,
SCAVELLO, SIPTROTH, WANSACZ, WHEATLEY, SAYLOR, SANTONI,
KILLION, CONKLIN, YOUNGBLOOD, GRUCELA, MANDERINO, FABRIZIO
AND McILHATTAN, MARCH 21, 2007
REFERRED TO COMMITTEE ON EDUCATION, MARCH 21, 2007
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, in educational
6 improvement, for tax credit, for definitions, for
7 qualification and application and for limitations.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section 2002-B of the act of March 10, 1949
11 (P.L.30, No.14), known as the Public School Code of 1949,
12 amended July 11, 2006 (P.L.1092, No.114), is amended to read:
13 Section 2002-B. Definitions.
14 The following words and phrases when used in this article
15 shall have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17 "Business firm." An entity authorized to do business in this
18 Commonwealth and subject to taxes imposed under Article IV, VI,
19 VII, VII-A, VIII, VIII-A, IX or XV of the act of March 4, 1971
1 (P.L.6, No.2), known as the Tax Reform Code of 1971.
2 "Contribution." A donation of cash, personal property or
3 services the value of which is the net cost of the donation to
4 the donor or the pro rata hourly wage, including benefits, of
5 the individual performing the services.
6 "Department." The Department of Community and Economic
7 Development of the Commonwealth.
8 "Educational improvement organization." A nonprofit entity
9 which:
10 (1) is exempt from Federal taxation under section
11 501(c)(3) of the Internal Revenue Code of 1986 (Public Law
12 99-514, 26 U.S.C. § 1 et seq.); and
13 (2) contributes at least 80% of its annual receipts as
14 grants to a public school for innovative educational
15 programs.
16 For purposes of this definition, a nonprofit entity
17 "contributes" its annual cash receipts when it expends or
18 otherwise irrevocably encumbers those funds for expenditure
19 during the then current fiscal year of the nonprofit entity or
20 during the next succeeding fiscal year of the nonprofit entity.
21 "Eligible pre-kindergarten student." For participation in
22 the pre-kindergarten scholarship program, 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
20070H0774B1002 - 2 -
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
20070H0774B1002 - 3 -
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 or provides pre-kindergarten
4 programs to public school students.
5 "Pre-kindergarten program." A program of instruction for
6 three-year-old or four-year-old students that utilizes a
7 curriculum aligned with the curriculum of the school with which
8 it is affiliated and which provides a minimum of two hours of
9 instructional and developmental activities per day at least 60
10 days per school year.
11 "Pre-kindergarten scholarship organization." A nonprofit
12 entity which:
13 (1) either is exempt from Federal taxation under section
14 501(c)(3) of the Internal Revenue Code of 1986 (Public Law
15 99-514, 26 U.S.C. § 1 et seq.) or is operated as a separate
16 segregated fund by a scholarship organization that has been
17 qualified under section 2003-B; and
18 (2) contributes at least 80% of its annual cash receipts
19 to a pre-kindergarten scholarship program by expending or
20 otherwise irrevocably encumbering those funds for
21 distribution during the then current fiscal year of the
22 organization or during the next succeeding fiscal year of the
23 organization.
24 "Pre-kindergarten scholarship program." A program to provide
25 tuition to eligible pre-kindergarten students to attend a pre-
26 kindergarten program operated by or in conjunction with a school
27 located in this Commonwealth and that includes an application
28 and review process for the purpose of making awards to eligible
29 pre-kindergarten students and awards scholarships to eligible
30 pre-kindergarten students without limiting availability to only
20070H0774B1002 - 4 -
1 students of one school.
2 "Public school." A public pre-kindergarten where compulsory
3 attendance requirements do not apply or a public kindergarten,
4 elementary school or secondary school at which the compulsory
5 attendance requirements of this Commonwealth may be met and
6 which meets the applicable requirements of Title VI of the Civil
7 Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).
8 "Scholarship organization." A nonprofit entity which:
9 (1) is exempt from Federal taxation under section
10 501(c)(3) of the Internal Revenue Code of 1986 (Public Law
11 99-514, 26 U.S.C. § 1 et seq.); and
12 (2) contributes at least 80% of its annual cash receipts
13 to a scholarship program.
14 For purposes of this definition, a nonprofit entity
15 "contributes" its annual cash receipts to a scholarship program
16 when it expends or otherwise irrevocably encumbers those funds
17 for distribution during the then current fiscal year of the
18 nonprofit entity or during the next succeeding fiscal year of
19 the nonprofit entity.
20 "Scholarship program." A program to provide tuition to
21 eligible students to attend a school located in this
22 Commonwealth or to receive tutoring services which shall include
23 intensive instruction in reading, math, science, social studies
24 or other academic subject areas. A scholarship program must
25 include an application and review process for the purpose of
26 making awards to eligible students. The award of scholarships to
27 eligible students shall be made without limiting availability to
28 only students of one school.
29 "School." A public or nonpublic pre-kindergarten,
30 kindergarten, elementary school or secondary school at which the
20070H0774B1002 - 5 -
1 compulsory attendance requirements of the Commonwealth may be
2 met and which meets the applicable requirements of Title VI of
3 the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).
4 "School age." Children from the earliest admission age to a
5 school's pre-kindergarten or kindergarten program or, when no
6 pre-kindergarten or kindergarten program is provided, the
7 school's earliest admission age for beginners, until the end of
8 the school year the student attains 21 years of age or
9 graduation from high school, whichever occurs first.
10 Section 2. Section 2003-B(c)(1) of the act is amended by
11 adding a subparagraph to read:
12 Section 2003-B. Qualification and application.
13 * * *
14 (c) Scholarship organizations and pre-kindergarten
15 scholarship organizations.--A scholarship organization or pre-
16 kindergarten scholarship organization must certify to the
17 department that the organization is eligible to participate in
18 the program established under this article and must agree to
19 annually report the following information to the department by
20 December 1, 2005, and September 1 of each year thereafter:
21 (1) * * *
22 (viii) In subparagraphs (i), (ii), (iii), (iv), (v),
23 (vi) and (vii), the number and amount of scholarships
24 awarded for tutoring services.
25 * * *
26 Section 3. Section 2006-B(a)(1) of the act, amended July 11,
27 2006 (P.L.1092, No.114), is amended to read:
28 Section 2006-B. Limitations.
29 (a) Amount.--
30 (1) The total aggregate amount of all tax credits
20070H0774B1002 - 6 -
1 approved shall not exceed [$54,000,000] $55,400,000 in a
2 fiscal year. No less than [$36,000,000] $37,400,000 of the
3 total aggregate amount shall be used to provide tax credits
4 for contributions from business firms to scholarship
5 organizations. No less than $18,000,000 of the total
6 aggregate amount shall be used to provide tax credits for
7 contributions from business firms to educational improvement
8 organizations.
9 * * *
10 Section 4. This act shall take effect in 60 days.
B2L24DMS/20070H0774B1002 - 7 -