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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY CHRISTIANA, TURZAI, PAYTON, COX, BLOOM, MICOZZIE, QUIGLEY, SIMMONS, SWANGER AND WHEATLEY, JUNE 21, 2011 |
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| REFERRED TO COMMITTEE ON EDUCATION, JUNE 21, 2011 |
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| AN ACT |
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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; establishing the educational improvement tax |
7 | credit; and making related repeals. |
8 | The General Assembly of the Commonwealth of Pennsylvania |
9 | hereby enacts as follows: |
10 | Section 1. The act of March 10, 1949 (P.L.30, No.14), known |
11 | as the Public School Code of 1949, is amended by adding an |
12 | article to read: |
13 | ARTICLE XXV-B |
14 | STUDENTS AND SCHOOLS RESCUE ACT |
15 | (a) Preliminary Provisions |
16 | Section 2501-B. Short title of article. |
17 | This article shall be known and may be cited as the Students |
18 | and Schools Rescue Act. |
19 | Section 1501.1-B. Scope of article. |
20 | This article relates to opportunity scholarships and |
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1 | educational improvement tax credits. |
2 | (b) Opportunity Scholarships |
3 | Section 2501.2-B. Legislative findings. |
4 | The General Assembly finds that: |
5 | (1) Pursuant to section 14 of Article III of the |
6 | Constitution of Pennsylvania, the General Assembly has the |
7 | responsibility to provide for the maintenance and support of |
8 | a thorough and efficient system of public education to serve |
9 | the needs of this Commonwealth. |
10 | (2) Parents are best suited to choose the most |
11 | appropriate means of education for their school-age children. |
12 | (3) Providing diverse educational opportunities for the |
13 | children of this Commonwealth is a civic and civil rights |
14 | imperative and a matter of serious concern. |
15 | (4) The importance of providing educational choices that |
16 | will meet the needs of parents, and the need to maintain and |
17 | support an effective system of education, make it imperative |
18 | to provide for the increased availability of diverse |
19 | opportunities, including both public and nonpublic programs |
20 | of education, to benefit all citizens of this Commonwealth. |
21 | (5) Public schools are the foundation of the system of |
22 | education in this Commonwealth. Further, Pennsylvania's |
23 | longstanding tradition of local control of public education |
24 | allows communities to adapt their public school programs to |
25 | meet local needs. For these reasons, a robust program of |
26 | interdistrict school choice is a critical means of providing |
27 | families with increased educational options within the |
28 | traditional public school system. |
29 | (6) The accessibility to families of nonpublic |
30 | educational alternatives decreases the burden on the |
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1 | Commonwealth and local school districts and increases the |
2 | range of educational choices available to Pennsylvania |
3 | families, thus providing a benefit to all citizens of this |
4 | Commonwealth. |
5 | (7) It is the long-term goal of the General Assembly to |
6 | offer assistance to all families in this Commonwealth, so as |
7 | to provide every child in this Commonwealth with diverse |
8 | educational opportunities and options. |
9 | (8) As an initial step toward the long-term goal of |
10 | offering assistance to all Pennsylvania families, this |
11 | subarticle provides assistance to disadvantaged school-age |
12 | children in this Commonwealth who would otherwise attend low |
13 | achieving schools. |
14 | (9) Many disadvantaged school-age children in this |
15 | Commonwealth enjoy comparatively fewer educational |
16 | opportunities or options than school-age children who possess |
17 | greater economic means. |
18 | (10) The programs of educational choice provided in this |
19 | subarticle are elements of an overall program of providing |
20 | funds to increase the availability of educational |
21 | opportunities for school-age children in this Commonwealth. |
22 | (11) A comparatively far greater proportion of public |
23 | funds are and, upon implementation of an educational choice |
24 | program, will continue to be devoted to the benefit of |
25 | children enrolled in the public schools of this Commonwealth. |
26 | An opportunity scholarship program that offers assistance to |
27 | parents who choose to enroll their children in participating |
28 | nonpublic schools should be viewed as an integral part of the |
29 | Commonwealth's overall program of educational funding and not |
30 | as an isolated individual program. |
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1 | (12) A program of financial assistance to enhance |
2 | educational choice in this Commonwealth, as one element of |
3 | the Commonwealth's plan for the funding of diverse |
4 | educational opportunities for the citizens of this |
5 | Commonwealth, will better prepare Commonwealth citizens to |
6 | compete for employment opportunities, will foster development |
7 | of a more capable and better-educated work force and will |
8 | better enable the Commonwealth to fulfill its obligation of |
9 | providing children with the opportunity to receive a quality |
10 | education. |
11 | Section 2502-B. Definitions. |
12 | The following words and phrases when used in this subarticle |
13 | shall have the meanings given to them in this section unless the |
14 | context clearly indicates otherwise: |
15 | "Assessment." The Pennsylvania System of School Assessment |
16 | test, the Keystone Exam, an equivalent local assessment or |
17 | another test established by the State Board of Education to meet |
18 | the requirements of section 2603-B(d)(10)(i) and required under |
19 | the No Child Left Behind Act of 2001 (Public Law 107-110, 115 |
20 | Stat. 1425) or its successor Federal statute or required to |
21 | achieve other standards established by the department for the |
22 | public school or school district under 22 Pa. Code § 403.3 |
23 | (relating to single accountability system). |
24 | "Average daily membership." A school district's average |
25 | daily membership as defined in section 2501(3). |
26 | "Board." The Education Opportunity Board established under |
27 | this subarticle. |
28 | "Department." The Department of Education of the |
29 | Commonwealth. |
30 | "Elementary school." A school that does not have an eleventh |
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1 | grade. |
2 | "Federal poverty line." The official Federal poverty line as |
3 | defined in section 673(2) of Subtitle B of the Community |
4 | Services Block Grant Act (Public Law 97-35, 95 Stat. 511), as |
5 | adjusted from time to time. |
6 | "Household income." Income as used for the purposes of |
7 | determining eligibility for a free lunch under the Richard B. |
8 | Russell National School Lunch Act (60 Stat. 230, 1751 et seq.). |
9 | "Kindergarten." A one-year formal kindergarten program that |
10 | occurs during the school year immediately prior to first grade. |
11 | "Local scholarship." A scholarship that is both: |
12 | (1) Funded by a percentage of the low-income child's |
13 | resident school district's total local revenue per average |
14 | daily membership as specified by the resident school |
15 | district; provided, however, that once a percentage is |
16 | established for a local scholarship recipient such percentage |
17 | may not be decreased.. |
18 | (2) Applied toward the low-income child's tuition to |
19 | attend a nonresident public school. |
20 | "Low achieving school." A public elementary or secondary |
21 | school within this Commonwealth ranking in the lowest 10% of its |
22 | designation as elementary or secondary, based on combined math |
23 | and reading scores from the most recent assessment for which |
24 | data is posted on the department's publicly accessible Internet |
25 | website. The term shall not include a charter school, cyber |
26 | charter school, area vocational-technical school, magnet school |
27 | or school that does not draw its student body from a particular |
28 | attendance boundary and any school with specialized academic |
29 | programs with specific admission criteria. |
30 | "Low-income child." A school-age child with a household |
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1 | income that does not exceed 2.5 times the Federal poverty line |
2 | for the school year preceding the school year for which an |
3 | opportunity scholarship is to be distributed. |
4 | "Nonpublic school." A school, other than a public school, |
5 | located within this Commonwealth where a Commonwealth resident |
6 | may legally fulfill the compulsory school attendance |
7 | requirements of this act and that meets the applicable |
8 | requirements of Title VI of the Civil Rights Act of 1964 (Public |
9 | Law 88-352, 78 Stat. 241). The term includes a full-time or |
10 | part-time kindergarten program operated by a nonpublic school. |
11 | "Nonresident public school." A public school outside a |
12 | child's resident school district. |
13 | "Nonresident school district." A school district other than |
14 | the school district in which a school-age child resides. |
15 | "Nonresident student." A school-age child attending a public |
16 | school outside the child's resident school district. |
17 | "Opportunity scholarship." An opportunity scholarship |
18 | awarded to a low-income child under this subarticle to pay |
19 | tuition for the child to attend a nonresident public school or a |
20 | participating nonpublic school. |
21 | "Opportunity scholarship program." The opportunity |
22 | scholarship program established under this subarticle. |
23 | "Opportunity scholarship recipient." A low-income child who |
24 | is awarded an opportunity scholarship under this subarticle. |
25 | "Parent." A Commonwealth resident who is a parent or |
26 | guardian of a school-age child. |
27 | "Participating nonpublic school." A nonpublic school located |
28 | in this Commonwealth and offering a program of instruction for |
29 | kindergarten through grade 12, or a combination of grades, that |
30 | certifies to the department under section 2505-B that it meets |
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1 | all of the following criteria: |
2 | (1) The nonpublic school is a nonprofit entity that is |
3 | exempt from Federal taxation under section 501(c)(3) of the |
4 | Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § |
5 | 1 et seq.). |
6 | (2) The nonpublic school does not discriminate in its |
7 | admission policies or practices for opportunity scholarship |
8 | applicants on the basis of measures of achievement or |
9 | aptitude or status as a handicapped person, except that an |
10 | applicant may be required to meet established eligibility |
11 | criteria for participation in magnet schools or in schools |
12 | with specialized academic missions. |
13 | (3) The nonpublic school is in full compliance with all |
14 | Federal and State laws applicable to nonpublic schools on the |
15 | day prior to the effective date of this section. |
16 | "Resident school district." The school district in which a |
17 | school-age child resides. |
18 | "School-age child." A child enrolling in kindergarten |
19 | through grade 12. |
20 | "Secondary school." A school with an eleventh grade. |
21 | "Student with a disability." A school-age child who has been |
22 | identified, in accordance with 22 Pa. Code Ch. 14 (relating to |
23 | special education services and programs), as a "child with a |
24 | disability," as defined in 34 CFR § 300.8 (relating to child |
25 | with a disability). |
26 | "Total revenue per average daily membership." A school |
27 | district's total revenue per average daily membership minus the |
28 | amount of reimbursement to the school district for pupil |
29 | transportation under sections 2509.3 and 2541. |
30 | Section 2503-B. Opportunity scholarship program. |
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1 | (a) Establishment.--Beginning with the 2012-2013 school |
2 | year, the opportunity scholarship program shall be established |
3 | to provide scholarships to help low-income children pay tuition |
4 | to attend a nonresident public school or a participating |
5 | nonpublic school. |
6 | (b) Phase-in.--The opportunity scholarship program shall be |
7 | phased in as follows: |
8 | (1) During the 2012-2013 school year, the opportunity |
9 | scholarship program shall be available to low-income children |
10 | who satisfy both of the following: |
11 | (i) Either attended a low achieving school during |
12 | the 2011-2012 school year or will be a kindergarten |
13 | student during the 2012-2013 school year. |
14 | (ii) Will reside within the attendance boundary of a |
15 | low achieving school as of the first day of classes of |
16 | the 2012-2013 school year. |
17 | (2) During the 2013-2014 school year and each year |
18 | thereafter, the opportunity scholarship program shall be |
19 | available to low-income children who qualified for the |
20 | program for the 2012-2013 school year under paragraph (1) and |
21 | to low-income children who will reside within the attendance |
22 | boundary of a low achieving school as of the first day of |
23 | classes of the 2013-2014 school year and each year |
24 | thereafter. |
25 | (c) School list.--The department shall, by February 1, 2012, |
26 | and by February 1 of each year thereafter, publish on the |
27 | department's publicly accessible Internet website and in the |
28 | Pennsylvania Bulletin a list of low achieving schools that shall |
29 | be in effect for purposes of this subarticle for the following |
30 | school year. The department shall publish the list based upon |
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1 | the most recent school year for which data is available. |
2 | (d) Notice.-- |
3 | (1) For each school year, by a date established by the |
4 | department, each school district in this Commonwealth shall |
5 | post on its publicly accessible Internet website notice of |
6 | the following: |
7 | (i) A description of the opportunity scholarship |
8 | program. |
9 | (ii) Instructions for applying for an opportunity |
10 | scholarship. |
11 | (iii) Instructions for applying for a local |
12 | scholarship if the school district has elected to provide |
13 | a local scholarship under section 2504-B(b). |
14 | (iv) A statement as to whether any schools in the |
15 | school district have been designated by the department as |
16 | low achieving schools. |
17 | (v) Notice that a parent must contact directly the |
18 | nonresident public school or participating nonpublic |
19 | school in which the parent's child seeks to enroll for |
20 | application instructions. |
21 | (2) The notice shall be in a form provided by the |
22 | department. |
23 | Section 2504-B. Opportunity scholarship to attend a nonresident |
24 | public school. |
25 | (a) Eligibility.--A low-income child who is eligible to |
26 | participate in the opportunity scholarship program may receive |
27 | an opportunity scholarship to pay tuition to attend a |
28 | nonresident public school that accepts a child's enrollment |
29 | application under subsection (d). |
30 | (b) Local scholarship.--A school district may elect to |
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1 | provide a local scholarship to low-income children residing |
2 | within the school district to pay tuition to attend a |
3 | nonresident public school that accepts a child's enrollment |
4 | application under subsection (d). A school district that elects |
5 | to provide a local scholarship shall: |
6 | (1) By a date established by the department, notify all |
7 | residents of the school district of the availability and |
8 | amount of the local scholarship for the following school year |
9 | and the process by which a low-income child may apply to the |
10 | department to receive the opportunity and local scholarships. |
11 | The school district shall post the notice on the school |
12 | district's publicly accessible Internet website. The notice |
13 | may be incorporated into the notice the school district is |
14 | required to provide under section 2503-B(d). |
15 | (2) By a date established by the department, notify the |
16 | department of the availability and amount of the local |
17 | scholarship for the following school year. |
18 | (3) When directed to do so by the department, pay to the |
19 | department the local scholarship for each low-income child |
20 | residing in the district who the department determines to be |
21 | eligible for the local scholarship and who the department |
22 | confirms has enrolled in a nonresident public school. |
23 | (4) Comply with all guidelines developed by the |
24 | department under section 2507-B. |
25 | (c) Application for opportunity and local scholarships.-- |
26 | (1) By a date established by the department and pursuant |
27 | to guidelines developed by the department under section 2507- |
28 | B, the parent of a low-income child may apply to the |
29 | department: |
30 | (i) For an opportunity scholarship for the following |
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1 | school year. |
2 | (ii) For a local scholarship for the following |
3 | school year, where the low-income child's resident school |
4 | district has elected to provide a local scholarship under |
5 | subsection (b). |
6 | (2) By a date established by the department, the |
7 | department shall notify parents whether the scholarships for |
8 | which the student applied will be awarded for the following |
9 | school year. |
10 | (d) Application for enrollment in a nonresident public |
11 | school.-- |
12 | (1) By a date established by the department, the parent |
13 | of a low-income child who has been awarded a scholarship |
14 | under subsection (c) may apply to one or more nonresident |
15 | public schools for enrollment of the child for the following |
16 | school year. The application shall be on a form provided by |
17 | the nonresident school district. |
18 | (2) (i) By a date established by the department, the |
19 | nonresident school district shall provide written notice |
20 | to the parent and the department as to whether the child |
21 | will be offered enrollment in the requested nonresident |
22 | public school for the following school year. |
23 | (ii) By a date established by the department, the |
24 | parent shall provide written notice to the department, |
25 | the resident school district and the nonresident school |
26 | district whether the offer of enrollment will be |
27 | accepted. |
28 | (iii) By a date established by the department, the |
29 | department must provide the resident school district and |
30 | the nonresident school district with written confirmation |
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1 | of the opportunity scholarship recipient's enrollment in |
2 | the nonresident school district. |
3 | (iv) If the child is not enrolled in a nonresident |
4 | public school, the child's resident school district shall |
5 | determine the public school within the resident school |
6 | district to which the child will be assigned. |
7 | (3) Each school district shall notify the department if |
8 | it intends to enroll nonresident students receiving |
9 | opportunity and local scholarships and shall develop an |
10 | enrollment application form and process. If a school district |
11 | determines it will enroll nonresident students receiving |
12 | opportunity and local scholarships, the school district must |
13 | enroll the nonresident students on a random basis from a pool |
14 | of applicants who meet the application deadline established |
15 | by the department, if: |
16 | (i) the nonresident student's enrollment in the |
17 | nonresident school district would not place either the |
18 | nonresident school district or the resident school |
19 | district in violation of a valid and binding |
20 | desegregation order; |
21 | (ii) the nonresident student has not been expelled |
22 | nor is in the process of being expelled under section |
23 | 1317.2 or 1318 and applicable regulations of the |
24 | Department of Education; |
25 | (iii) the nonresident student has not been recruited |
26 | by the school district or its representatives for |
27 | athletic purposes; or |
28 | (iv) the nonresident student meets the established |
29 | eligibility criteria for participation in a magnet school |
30 | or in a public school with a specialized academic |
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1 | mission. |
2 | (4) A nonresident school district may give priority in |
3 | enrollment to any of the following: |
4 | (i) A nonresident student who has been awarded a |
5 | local scholarship. |
6 | (ii) A nonresident student who is the sibling of a |
7 | student who is currently enrolled in the nonresident |
8 | school district. |
9 | (e) Commonwealth payments.--The Commonwealth shall make |
10 | payment pursuant to the schedule contained under section 2517 |
11 | to each school district or area vocational-technical school that |
12 | accepts a nonresident student under the provisions of this |
13 | subarticle subject to the following terms and conditions: |
14 | (1) The Commonwealth shall pay to each school district |
15 | or area vocational-technical school that accepts a |
16 | nonresident student, on a tuition basis, the amount |
17 | determined under section 2506-B. |
18 | (2) (i) For a nonresident student who is an opportunity |
19 | scholarship recipient and is defined as a "student with a |
20 | disability," services provided to the opportunity |
21 | scholarship recipient shall be charged against the |
22 | Commonwealth's special education subsidy to the resident |
23 | school district, except that the resident school district |
24 | shall not be charged more for services provided to the |
25 | opportunity scholarship recipient by the nonresident |
26 | school district than the difference between: |
27 | (A) the current year cost of the services had |
28 | the opportunity scholarship recipient remained in the |
29 | resident school district; and |
30 | (B) the sum of the opportunity scholarship, the |
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1 | local scholarship and the per pupil special education |
2 | funding following the opportunity scholarship |
3 | recipient. |
4 | (ii) The resident school district shall provide the |
5 | department with documentation of the prior year's cost of |
6 | services provided to the opportunity scholarship |
7 | recipient and an estimate of the cost of providing those |
8 | services in the current year had the opportunity |
9 | scholarship recipient remained in the resident school |
10 | district. Any cost not covered by this funding shall be |
11 | borne by the nonresident school district enrolling the |
12 | opportunity scholarship recipient. |
13 | (3) If an opportunity scholarship recipient withdraws |
14 | from a nonresident school district prior to the completion of |
15 | the school year, the following shall apply: |
16 | (i) The nonresident school district shall, within 15 |
17 | days of the opportunity scholarship recipient's |
18 | withdrawal from the nonresident school district, provide |
19 | the department with written notice of the opportunity |
20 | scholarship recipient's withdrawal from the nonresident |
21 | school district. |
22 | (ii) The resident school district, nonresident |
23 | school district or participating nonpublic school in |
24 | which the opportunity scholarship recipient subsequently |
25 | enrolls shall notify the department within five days of |
26 | the opportunity scholarship recipient's enrollment. |
27 | (iii) Within 30 days after receiving the notice |
28 | required under subparagraph (ii), the department shall do |
29 | the following: |
30 | (A) If the opportunity scholarship recipient |
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1 | enrolls in the resident school district or a |
2 | nonresident school district, pay the resident school |
3 | district or nonresident school district the full |
4 | amount of the opportunity scholarship payment reduced |
5 | on a pro rata basis for the portion of the school |
6 | year in which the opportunity scholarship recipient |
7 | was enrolled in another school. |
8 | (B) If the opportunity scholarship recipient |
9 | enrolls in a participating nonpublic school, pay the |
10 | opportunity scholarship recipient's parent the full |
11 | amount of the opportunity scholarship payment reduced |
12 | on a pro rata basis for the portion of the school |
13 | year in which the opportunity scholarship recipient |
14 | was enrolled in another school. Payment shall be made |
15 | to the parents of the opportunity scholarship |
16 | recipient pursuant to the provisions of section 2505- |
17 | B(b). |
18 | (f) Limitation.--The tuition charged by a nonresident school |
19 | district to an opportunity scholarship recipient under this |
20 | subarticle shall not exceed the sum of the opportunity |
21 | scholarship and the local scholarship, if applicable, awarded to |
22 | the opportunity scholarship recipient. |
23 | (g) Transportation.-- |
24 | (1) Notwithstanding any provisions of section 1361, a |
25 | school district that provides its resident public school |
26 | pupils with transportation to and from the resident public |
27 | schools under section 1361 shall provide a student who |
28 | resides within the school district but regularly attends a |
29 | nonresident public school, including a charter school, that |
30 | is located not more than ten miles from the student's |
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1 | resident school district by the nearest public highway, with |
2 | transportation to and from the nonresident public school |
3 | under section 1361. |
4 | (2) Transportation of a student under this subsection |
5 | shall be subject to reimbursement under section 2541. |
6 | Section 2505-B. Opportunity scholarship to attend a |
7 | participating nonpublic school. |
8 | (a) Procedure.-- |
9 | (1) The parent of a low-income child who is eligible to |
10 | receive an opportunity scholarship under section 2503-B and |
11 | desires to apply for an opportunity scholarship to attend a |
12 | participating nonpublic school must comply with the |
13 | provisions of this subsection. |
14 | (2) (i) By a date established by the department, the |
15 | parent must apply to the department for an opportunity |
16 | scholarship for the following school year pursuant to |
17 | guidelines developed by the department under section |
18 | 2507-B. |
19 | (ii) By a date established by the department, the |
20 | department shall notify parents whether the opportunity |
21 | scholarship will be awarded for the following school |
22 | year. |
23 | (3) (i) The parent must apply for enrollment directly |
24 | to the participating nonpublic school pursuant to |
25 | application procedures developed by the participating |
26 | nonpublic school. |
27 | (ii) By a date established by the department, a |
28 | participating nonpublic school shall provide written |
29 | confirmation to the department of each opportunity |
30 | scholarship recipient whose application for enrollment |
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1 | has been accepted for the following school year. |
2 | (iii) By a date established by the department, the |
3 | department shall provide the opportunity scholarship |
4 | recipient's resident school district with written |
5 | confirmation of the opportunity scholarship recipient's |
6 | enrollment in the participating nonpublic school. |
7 | (b) Payment of opportunity scholarships.--The Commonwealth |
8 | shall provide payment of an opportunity scholarship to the |
9 | parents of each opportunity scholarship recipient who is |
10 | enrolled in a participating nonpublic school under the |
11 | provisions of this subarticle subject to the following terms and |
12 | conditions: |
13 | (1) (i) Opportunity scholarships shall be awarded only |
14 | for the payment of costs of tuition at a participating |
15 | nonpublic school within this Commonwealth. |
16 | (ii) Opportunity scholarships shall not be awarded |
17 | for enrollment in a home education program provided under |
18 | section 1327.1. |
19 | (2) (i) Opportunity scholarships shall be paid to the |
20 | parents of an opportunity scholarship recipient upon the |
21 | department's receipt of written confirmation of |
22 | enrollment from the participating nonpublic school |
23 | selected by the recipient. |
24 | (ii) The opportunity scholarship shall be paid by |
25 | check, which may be endorsed by the parents only for |
26 | payment of tuition at the participating nonpublic school |
27 | at which the opportunity scholarship recipient's |
28 | enrollment has been confirmed. |
29 | (3) If an opportunity scholarship recipient withdraws |
30 | from a participating nonpublic school prior to the completion |
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1 | of the school year, the following shall apply: |
2 | (i) The participating nonpublic school shall, within |
3 | 15 days of the opportunity scholarship recipient's |
4 | withdrawal from the participating nonpublic school: |
5 | (A) Provide the department with written notice |
6 | of the opportunity scholarship recipient's withdrawal |
7 | from the participating nonpublic school. |
8 | (B) Return to the department the full amount of |
9 | the opportunity scholarship payment reduced on a pro |
10 | rata basis by the tuition for the portion of the |
11 | school year in which the opportunity scholarship |
12 | recipient was enrolled. |
13 | (ii) If the participating nonpublic school fails to |
14 | submit to the department the amount required to be paid |
15 | under subparagraph (i), the department shall impose |
16 | interest on the unpaid amount, calculated from the due |
17 | date at the rate determined by the Secretary of Revenue |
18 | for interest payments on overdue taxes or the refund of |
19 | taxes as provided in sections 806 and 806.1 of the act of |
20 | April 9, 1929 (P.L.343, No.176), known as The Fiscal |
21 | Code. |
22 | (iii) If the opportunity scholarship recipient |
23 | enrolls in another participating nonpublic school within |
24 | the school year for which the opportunity scholarship was |
25 | awarded, the department shall pay the parent of the |
26 | opportunity scholarship recipient the opportunity |
27 | scholarship prorated for the remaining portion of the |
28 | school year. |
29 | (4) (i) If an opportunity scholarship recipient is |
30 | expelled from a participating nonpublic school prior to |
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1 | the completion of the school year and the opportunity |
2 | scholarship recipient subsequently enrolls in his |
3 | resident school district, the department shall pay the |
4 | resident school district the opportunity scholarship |
5 | award, prorated for the remaining portion of the school |
6 | year. |
7 | (ii) The resident school district shall apply the |
8 | payment calculated under subparagraph (i) toward |
9 | providing educational services for the opportunity |
10 | scholarship recipient, pursuant to Federal and State law. |
11 | (c) Disclosure of penalties.-- |
12 | (1) Each opportunity scholarship check issued under this |
13 | section shall contain the following statement: |
14 | "Failure to endorse this check as directed by the |
15 | department may subject the endorser to civil penalties |
16 | and criminal prosecution." |
17 | (2) A parent's endorsement or use of an opportunity |
18 | scholarship check in a manner other than as directed by the |
19 | department may subject the parent to the following penalties: |
20 | (i) A civil penalty equal to 300% of the full amount |
21 | of the annual opportunity scholarship awarded to the |
22 | parent. |
23 | (ii) Disqualification from future eligibility for an |
24 | opportunity scholarship. |
25 | (iii) Criminal prosecution. |
26 | (d) Enrollment requirements.--The following shall apply to a |
27 | participating nonpublic school that admits an opportunity |
28 | scholarship recipient: |
29 | (1) The participating nonpublic school shall not |
30 | discriminate on any basis that is illegal under Federal or |
|
1 | State laws applicable to nonpublic schools on the date prior |
2 | to the effective date of this section. |
3 | (2) The participating nonpublic school shall comply with |
4 | section 1521, which prohibits discrimination in enrollment on |
5 | the basis of race or color. |
6 | (3) The participating nonpublic school may not recruit |
7 | any public school student to enroll for athletic purposes. |
8 | (4) For each school year, by a date established by the |
9 | department, a nonpublic school that desires to enroll |
10 | opportunity scholarship recipients under this subarticle |
11 | shall certify to the department that it satisfies the |
12 | definition of "participating nonpublic school" in section |
13 | 2502-B. The certification shall be submitted on a form |
14 | developed by the department. |
15 | (d.1) Policies.--Upon request, a participating nonpublic |
16 | school shall make available for review by the parents of any |
17 | opportunity scholarship recipient seeking enrollment its written |
18 | school policies and procedures related to tuition charges, |
19 | admissions, academic offerings and requirements, discipline, |
20 | religious instruction, parent involvement, standardized testing, |
21 | the release of results of standardized tests administered by the |
22 | participating nonpublic school, extracurricular activities and |
23 | suspension and expulsion of students, including educational |
24 | accommodations and counseling offered to students and parents. |
25 | (e) Assessments.-- |
26 | (1) (i) Each participating nonpublic school shall |
27 | administer annually an assessment or a nationally normed |
28 | standardized achievement test in reading and language |
29 | arts and mathematics to each opportunity scholarship |
30 | recipient attending the participating nonpublic school in |
|
1 | grades 3, 5, 8 and 11. |
2 | (ii) To comply with subparagraph (i), a |
3 | participating nonpublic school may either administer an |
4 | assessment or administer a nationally normed standardized |
5 | achievement test chosen by the participating nonpublic |
6 | school from a list established under paragraph (2). |
7 | (2) The department shall establish a list of at least |
8 | eight nationally normed standardized achievement tests from |
9 | which the participating nonpublic school shall select a test |
10 | to be administered if the participating nonpublic school does |
11 | not choose to administer an assessment. |
12 | (3) Each participating nonpublic school shall: |
13 | (i) Release each opportunity scholarship recipient's |
14 | individual results on the assessment or nationally normed |
15 | standardized achievement test administered to opportunity |
16 | scholarship recipients under paragraph (1) to the parent |
17 | of the opportunity scholarship recipient. |
18 | (ii) If the participating nonpublic school has a |
19 | publicly accessible Internet website, post on the website |
20 | the participating nonpublic school's aggregate results on |
21 | the assessment or nationally normed standardized |
22 | achievement test administered to opportunity scholarship |
23 | recipients under paragraph (1), except that the |
24 | participating nonpublic school shall not post results |
25 | that reveal the identity of any individual student. |
26 | (4) The participating nonpublic school shall bear the |
27 | cost of the testing administered under this subsection and |
28 | may not impose an assessment or testing fee on an opportunity |
29 | scholarship recipient. |
30 | (5) The department may not require a participating |
|
1 | nonpublic school to provide individual or aggregate results |
2 | of the testing administered under this subsection beyond the |
3 | manner prescribed in paragraph (3). |
4 | (f) Construction.--Nothing in this subarticle shall be |
5 | construed to: |
6 | (1) Prohibit a participating nonpublic school from |
7 | limiting admission to a particular grade level, a single |
8 | gender or to areas of concentration of the participating |
9 | nonpublic school, including mathematics, science and the |
10 | arts. |
11 | (2) Empower the Commonwealth or any of its agencies or |
12 | officers or political subdivisions to impose any additional |
13 | requirements on any participating nonpublic school which are |
14 | not otherwise authorized under the laws of this Commonwealth |
15 | or to require any participating nonpublic school to enroll |
16 | any opportunity scholarship recipient if the participating |
17 | nonpublic school does not offer appropriate programs or is |
18 | not structured or equipped with the necessary facilities to |
19 | meet the special needs of the opportunity scholarship |
20 | recipient or does not offer a particular program requested. |
21 | Section 2506-B. Amount of opportunity scholarship. |
22 | (a) Calculation.-- |
23 | (1) The base amount of the opportunity scholarship shall |
24 | equal 100% of the Commonwealth's share of the resident school |
25 | district's total revenue per average daily membership of the |
26 | prior school year. The base amount shall be multiplied by the |
27 | appropriate factor set forth in this subsection to determine |
28 | each opportunity scholarship recipient's actual opportunity |
29 | scholarship amount. |
30 | Household income as a percentage of the Federal | Factor | | 1 2 3 | poverty line for the school year preceding the school year for which an opportunity scholarship is to be distributed: | | 4 | Up to and including 100%................... | 1.0 | 5 | Above 100%, but not more than 150%......... | 0.9 | 6 | Above 150%, but not more than 200% ........ | 0.75 | 7 | Above 200%, but not more than 250%......... | 0.5 |
|
8 | (2) In no case shall the combined amount of the |
9 | opportunity scholarship and any additional financial |
10 | assistance provided by a participating nonpublic school |
11 | exceed the tuition rate for the participating nonpublic |
12 | school. |
13 | (b) Limitation.--No nonresident public school or |
14 | participating nonpublic school may charge an opportunity |
15 | scholarship recipient a higher tuition rate than the rate the |
16 | nonresident public school or participating nonpublic school |
17 | would have charged to a student who has not received an |
18 | opportunity scholarship. |
19 | (c) Annual appropriations.--Opportunity scholarships |
20 | authorized under this subarticle shall be made from annual |
21 | appropriations made by the General Assembly to the department |
22 | for the 2012-2013 school year and each school year thereafter. |
23 | The total amount of opportunity scholarships provided for the |
24 | 2013-2014 school year and each year thereafter shall be limited |
25 | to the amount of money appropriated for that fiscal year. In the |
26 | event that insufficient moneys are available in any fiscal year |
27 | to provide opportunity scholarships to all eligible opportunity |
28 | scholarship recipients in the amount authorized, the department |
29 | shall make pro rata reductions in the amount of the opportunity |
30 | scholarship provided to each opportunity scholarship recipient |
|
1 | (d) Nontaxable.--Opportunity scholarship funds received by a |
2 | parent pursuant to this subarticle shall not be considered |
3 | taxable income for purposes of any local taxing ordinance or for |
4 | purposes of Article III of the act of March 4, 1971 (P.L.6, |
5 | No.2), known as the Tax Reform Code of 1971, nor shall |
6 | opportunity scholarships constitute financial assistance or |
7 | appropriations to the participating nonpublic school attended by |
8 | the opportunity scholarship recipient. |
9 | (e) Continued eligibility.-- |
10 | (1) A child enrolled in a nonresident public school or a |
11 | participating nonpublic school who received an opportunity |
12 | scholarship under this subarticle in the prior school year |
13 | shall receive an opportunity scholarship in each school year |
14 | of enrollment under the opportunity scholarship program. |
15 | (2) (i) If a child who received an opportunity |
16 | scholarship under this subarticle in the prior school |
17 | year ceases to qualify as a low-income child, the child |
18 | shall continue to receive a partial scholarship until |
19 | completing the eighth grade, provided that the child |
20 | continues to meet all other eligibility requirements. |
21 | (ii) In calculating the amount of the partial |
22 | scholarship, the department shall make a pro rata |
23 | reduction in the child's opportunity scholarship based |
24 | upon the child's household income. |
25 | (f) Penalties.--Any person who fraudulently submits an |
26 | opportunity or local scholarship application or who knowingly |
27 | falsifies material information on an opportunity or local |
28 | scholarship application shall be subject to the following |
29 | penalties: |
30 | (1) Imposition by the department of a civil penalty of |
|
1 | up to $1,000. |
2 | (2) Prosecution for violation of 18 Pa.C.S. § 4904 |
3 | (relating to unsworn falsification to authorities). |
4 | (3) Disqualification from future participation in the |
5 | opportunity scholarship program. |
6 | (g) Residence in more than one school district within school |
7 | year.--When an opportunity scholarship recipient resides within |
8 | more than one school district during a school year, the amount |
9 | of the opportunity scholarship shall be charged against each |
10 | resident school district on a pro rata basis. |
11 | Section 2507-B. Guidelines. |
12 | (a) Requirements.--Within 120 days of the effective date of |
13 | this section, the department, subject to the approval of the |
14 | board under section 2509-B(f)(2), shall establish guidelines |
15 | that provide the following: |
16 | (1) Forms to apply for opportunity and local |
17 | scholarships, including application and approval processes |
18 | and deadlines for application and notification. |
19 | (2) Procedures to verify the accuracy of the information |
20 | provided in an opportunity or local scholarship application. |
21 | (3) Procedures for school district, school and parent |
22 | notification of opportunity or local scholarship awards. |
23 | (4) Procedures for administration of the opportunity and |
24 | local scholarship programs. |
25 | (5) Confirmation of school enrollment by opportunity |
26 | scholarship recipients. |
27 | (6) Procedures for making payment of opportunity |
28 | scholarships, including policies and procedures to minimize |
29 | the likelihood of fraud or misuse of opportunity scholarship |
30 | funds. For an opportunity scholarship recipient enrolled in a |
|
1 | participating nonpublic school, the procedures shall include |
2 | restrictive endorsement of opportunity scholarship checks to |
3 | the participating nonpublic school in which the opportunity |
4 | scholarship recipient is enrolled. |
5 | (7) Procedures for participating nonpublic schools to |
6 | pay pro rata refunds of opportunity scholarships to the |
7 | department when an opportunity scholarship recipient |
8 | withdraws from a participating nonpublic school during the |
9 | school year for which the opportunity scholarship was paid. |
10 | (8) Development and distribution of public information |
11 | concerning the opportunity and local scholarship programs. |
12 | (9) Procedures to determine the eligibility of homeless |
13 | students for opportunity scholarships under this subarticle, |
14 | consistent with the McKinney-Vento Homeless Assistance Act |
15 | (Public Law 100-77, 101 Stat. 482), or a successor Federal |
16 | statute. |
17 | (10) Deadline dates for actions required to be taken by |
18 | the department, school districts, participating nonpublic |
19 | schools and parents under this subarticle. |
20 | (11) Policies and procedures to be followed by the |
21 | participating nonpublic schools in posting the aggregate |
22 | results of the assessment or nationally normed standardized |
23 | achievement test administered to opportunity scholarship |
24 | recipients pursuant to section 2505-B(e)(3)(ii) provided that |
25 | the department may not require a participating nonpublic |
26 | school to provide individual or aggregate results of the |
27 | testing administered under section 2505-B(e) directly to the |
28 | department or require a participating nonpublic school to |
29 | provide testing results or information beyond the |
30 | requirements of section 2505-B(e)(3). |
|
1 | (12) Other procedures as are necessary to fully |
2 | implement the opportunity and local scholarship programs. |
3 | (13) A list of at least eight nationally normed |
4 | standardized achievement tests from which a participating |
5 | nonpublic school may select a test to be administered |
6 | pursuant to section 2505-B(e). The initial list developed by |
7 | the board shall, at a minimum, include the following: |
8 | (i) California Achievement Test. |
9 | (ii) Comprehensive Testing Program (CTPIV). |
10 | (iii) Iowa Test of Basic Skills. |
11 | (iv) Metropolitan Achievement Test. |
12 | (v) Peabody Achievement Individual Test - Revised |
13 | Version. |
14 | (vi) Stanford Achievement Test. |
15 | (vii) Terra Nova. |
16 | (viii) Woodcock Johnson Revised Tests of Achievement |
17 | III. |
18 | (b) Publication.--The guidelines shall be published as a |
19 | statement of policy in the Pennsylvania Bulletin. The department |
20 | shall post the guidelines on the department's publicly |
21 | accessible Internet website. |
22 | (c) State Board of Education.--Notwithstanding any other |
23 | provision of law to the contrary, the programs, procedures and |
24 | guidelines authorized by this subarticle shall not be subject to |
25 | review, regulation or approval by the State Board of Education. |
26 | (d) Exemption of guidelines from certain laws.--The initial |
27 | guidelines established by the department, and any amendments to |
28 | the guidelines, shall be exempt from the requirements of the |
29 | following: |
30 | (1) The act of June 25, 1982 (P.L.633, No.181), known as |
|
1 | the Regulatory Review Act. |
2 | (2) The act of July 31, 1968 (P.L.769, No.240), referred |
3 | to as the Commonwealth Documents Law. |
4 | (3) The act of October 15, 1980 (P.L.950, No.164), known |
5 | as the Commonwealth Attorneys Act. |
6 | Section 2508-B. Reduction in amount of school aid. |
7 | (a) General rule.--Notwithstanding any other provision of |
8 | law to the contrary, beginning in the second consecutive school |
9 | year of enrollment in a nonresident public school or a |
10 | participating nonpublic school by an opportunity scholarship |
11 | recipient who was enrolled in the recipient's resident school |
12 | district or in a charter school or cyber charter school when the |
13 | recipient first received an opportunity scholarship under this |
14 | subarticle, the amount of Commonwealth basic education funding |
15 | paid by the department to the resident school district shall be |
16 | reduced by an amount equal to the Commonwealth's share of the |
17 | school district's total revenue per average daily membership. |
18 | (b) Average daily membership.--Where a resident school |
19 | district's basic education funding is reduced under subsection |
20 | (a), the resident school district shall continue to include the |
21 | opportunity scholarship recipient in the resident school |
22 | district's average daily membership. |
23 | Section 2509-B. Education Opportunity Board. |
24 | (a) Establishment.-- |
25 | (1) The Education Opportunity Board is established |
26 | within the department. |
27 | (2) The board shall consist of three members. A member |
28 | must be a resident of this Commonwealth. |
29 | (3) Initial members shall be appointed by the Governor. |
30 | The Governor may appoint no more than two members to the |
|
1 | board who are members of the same political party as the |
2 | Governor. |
3 | (4) Upon the expiration of the term or the occurrence of |
4 | a vacancy in the office of a member of the board, the |
5 | Governor shall appoint a successor member with the advice and |
6 | consent of a majority of the members elected to the Senate. |
7 | (b) Terms.--A member shall serve a term of four years. A |
8 | member shall continue to serve after the expiration of the term |
9 | until the Governor appoints a replacement who is confirmed by a |
10 | majority of the members elected to the Senate. |
11 | (c) Chairperson.--The Governor shall annually select a |
12 | chairperson from among the membership of the board. |
13 | (d) Meetings.-- |
14 | (1) Meetings shall be held: |
15 | (i) at least quarterly at the call of the |
16 | chairperson; and |
17 | (ii) upon request in writing of a majority of the |
18 | board. |
19 | (2) Two members constitute a quorum. Unless otherwise |
20 | specified in this subarticle, a quorum may act upon a matter |
21 | properly before the board. |
22 | (e) Compensation prohibited.--Members of the board shall |
23 | receive no compensation for services but shall be reimbursed for |
24 | actual and necessary expenses incurred in the performance of |
25 | official duties. |
26 | (f) Powers and duties.--The board has the following powers |
27 | and duties: |
28 | (1) Advise the department concerning the implementation |
29 | and administration of the opportunity scholarship and local |
30 | scholarship programs. |
|
1 | (2) Approve guidelines established by the department |
2 | under section 2507-B. |
3 | (3) Prepare an annual report to be submitted by December |
4 | 1 to the chair and minority chair of the Education Committee |
5 | of the Senate and the chair and minority chair of the |
6 | Education Committee of the House of Representatives. The |
7 | report shall describe the manner in which the board carries |
8 | out its powers and duties under this subsection. |
9 | (g) Staff.--The department shall provide, from existing |
10 | personnel of the department, adequate staffing to facilitate the |
11 | responsibilities of the board. |
12 | Section 2509.1-B. Powers and duties of department. |
13 | The department has the following powers and duties: |
14 | (1) Establish, under section 2507-B, guidelines for the |
15 | administration of the local scholarship program and the |
16 | opportunity scholarship program. |
17 | (2) Administer the application and approval processes |
18 | for local scholarships and opportunity scholarships. This |
19 | paragraph includes developing: |
20 | (i) application forms and other necessary forms; and |
21 | (ii) the notice under section 2503-B(d). |
22 | (4) Review and verify the income and residence of each |
23 | applicant for a local scholarship and an opportunity |
24 | scholarship. |
25 | (5) Announce the award of local scholarships and |
26 | opportunity scholarships for the following school year under |
27 | sections 2504-B(c) and 2505-B(a). |
28 | (6) Confirm the enrollment of opportunity scholarship |
29 | recipients in nonresident public schools and participating |
30 | nonpublic schools and allocate opportunity scholarship funds |
|
1 | to opportunity scholarship recipients. |
2 | (7) Make payment of opportunity scholarships under |
3 | sections 2504-B and 2505-B. |
4 | (8) Notify school districts that elect to create local |
5 | scholarships when payment must be made under section 2504-B |
6 | (b). |
7 | (9) Make payment to nonresident public schools of local |
8 | scholarships paid to the department under section 2504-B(b) |
9 | (3). |
10 | (10) Beginning after the first school year of |
11 | implementation of the opportunity scholarship program, |
12 | prepare an annual report to be submitted by December 1 to the |
13 | Governor, the Secretary of the Senate and the Chief Clerk of |
14 | the House of Representatives and to be made available to the |
15 | parents of opportunity scholarship recipients and placed on |
16 | the department's publicly accessible Internet website. The |
17 | report shall include at least the following information for |
18 | the prior school year: |
19 | (i) Total number of opportunity scholarships |
20 | requested. |
21 | (ii) Total number and total dollar amount of |
22 | opportunity scholarships awarded. Totals under this |
23 | subparagraph shall be classified as to: |
24 | (A) whether the opportunity scholarship |
25 | recipient attends a nonresident public school or a |
26 | participating nonpublic school; |
27 | (B) the grade level of the opportunity |
28 | scholarship recipient; and |
29 | (C) whether the opportunity scholarship |
30 | recipient resides in a school district with at least |
|
1 | one low achieving school. |
2 | (iii) Administrative cost of the opportunity |
3 | scholarship program. |
4 | (iv) A list of nonresident public schools to which |
5 | opportunity scholarship funds were disbursed on behalf of |
6 | opportunity scholarship recipients and the amount |
7 | disbursed to each nonresident public school. |
8 | (v) A list of participating nonpublic schools in |
9 | which opportunity scholarship recipients enrolled and the |
10 | number of opportunity scholarship recipients who enrolled |
11 | in each participating nonpublic school. |
12 | (vi) Total number and total dollar amount of local |
13 | scholarships awarded. Totals under this subparagraph |
14 | shall be classified as to resident school districts that |
15 | made the local scholarship awards. |
16 | Section 2510-B. Study. |
17 | Following the 2015-2016 school year, the department shall |
18 | conduct a study of the effectiveness of the opportunity |
19 | scholarship program and shall deliver a written report of its |
20 | findings, including any recommendations for changes to the |
21 | program, to the Governor, the chair and minority chair of the |
22 | Education Committee of the Senate and the chair and minority |
23 | chair of the Education Committee of the House of Representatives |
24 | by December 31, 2016. The following apply: |
25 | (1) The study shall assess the effectiveness of section |
26 | 2505-B(e). |
27 | (2) Except as set forth in paragraph (3), the study |
28 | shall be conducted using only data posted on the |
29 | participating nonpublic school's publicly accessible Internet |
30 | website under section 2505-B(e)(3)(ii). |
|
1 | (3) The study may include an examination of individual |
2 | student test results or files maintained by participating |
3 | nonpublic schools. |
4 | Section 2511-B. Exclusive jurisdiction of Supreme Court. |
5 | The Supreme Court shall have exclusive jurisdiction to hear a |
6 | challenge or to render a declaratory judgment concerning the |
7 | constitutionality of this subarticle. The Supreme Court may take |
8 | appropriate action, consistent with retaining jurisdiction, to |
9 | find facts or to expedite a final judgment in connection with |
10 | the matter. |
11 | (c) Educational Improvement Tax Credit |
12 | Section 2521-B. Definitions. |
13 | The following words and phrases when used in this subarticle |
14 | shall have the meanings given to them in this section unless the |
15 | context clearly indicates otherwise: |
16 | "Business firm." An entity authorized to do business in this |
17 | Commonwealth and subject to taxes imposed under Article III, IV, |
18 | VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6, |
19 | No.2), known as the Tax Reform Code of 1971. The term includes a |
20 | pass-through entity. |
21 | "Contribution." A donation of cash, personal property or |
22 | services, the value of which is the net cost of the donation to |
23 | the donor or the pro rata hourly wage, including benefits, of |
24 | the individual performing the services. |
25 | "Department." The Department of Community and Economic |
26 | Development of the Commonwealth. |
27 | "Educational improvement organization." A nonprofit entity |
28 | which: |
29 | (1) is exempt from Federal taxation under section 501(c) |
30 | (3) of the Internal Revenue Code of 1986 (Public Law 99-514, |
|
1 | 26 U.S.C. § 1 et seq.); and |
2 | (2) contributes at least 80% of its annual receipts as |
3 | grants to a public school, a chartered school as defined in |
4 | section 1376.1 or a private school approved under section |
5 | 1376 for innovative educational programs. |
6 | For purposes of this definition, a nonprofit entity contributes |
7 | its annual cash receipts when it expends or otherwise |
8 | irrevocably encumbers those funds for expenditure during the |
9 | then current fiscal year of the nonprofit entity or during the |
10 | next succeeding fiscal year of the nonprofit entity. A nonprofit |
11 | entity includes a school district foundation, public school |
12 | foundation, charter school foundation or cyber charter school |
13 | foundation. |
14 | "Eligible prekindergarten student." A student, including an |
15 | eligible student with a disability, who is enrolled in a |
16 | prekindergarten program and is a member of a household with a |
17 | maximum annual household income as increased by the applicable |
18 | income allowance. |
19 | "Eligible student." A school-age student, including an |
20 | eligible student with a disability, who is enrolled in a school |
21 | and is a member of a household with a maximum annual household |
22 | income as increased by the applicable income allowance. |
23 | "Eligible student with a disability." A prekindergarten |
24 | student or a school-age student who meets all of the following: |
25 | (1) Is either enrolled in a special education school or |
26 | has otherwise been identified, in accordance with 22 Pa. Code |
27 | Ch. 14 (relating to special education services and programs), |
28 | as a "child with a disability," as defined in 34 CFR § 300.8 |
29 | (relating to child with a disability). |
30 | (2) Needs special education and related services. |
|
1 | (3) Is enrolled in a prekindergarten program or in a |
2 | school. |
3 | (4) Is a member of a household with a household income |
4 | of not more than the maximum annual household income. |
5 | "Household." An individual living alone or with the |
6 | following: a spouse, parent and their unemancipated minor |
7 | children, other unemancipated minor children who are related by |
8 | blood or marriage or other adults or unemancipated minor |
9 | children living in the household who are dependent upon the |
10 | individual. |
11 | "Household income." All money or property received of |
12 | whatever nature and from whatever source derived. The term does |
13 | not include the following: |
14 | (1) Periodic payments for sickness and disability other |
15 | than regular wages received during a period of sickness or |
16 | disability. |
17 | (2) Disability, retirement or other payments arising |
18 | under workers' compensation acts, occupational disease acts |
19 | and similar legislation by any government. |
20 | (3) Payments commonly recognized as old-age or |
21 | retirement benefits paid to persons retired from service |
22 | after reaching a specific age or after a stated period of |
23 | employment. |
24 | (4) Payments commonly known as public assistance or |
25 | unemployment compensation payments by a governmental agency. |
26 | (5) Payments to reimburse actual expenses. |
27 | (6) Payments made by employers or labor unions for |
28 | programs covering hospitalization, sickness, disability or |
29 | death, supplemental unemployment benefits, strike benefits, |
30 | Social Security and retirement. |
|
1 | (7) Compensation received by United States servicemen |
2 | serving in a combat zone. |
3 | "Income allowance." |
4 | (1) Subject to paragraph (2), the amount of: |
5 | (i) Before July 1, 2011, $10,000 for each eligible |
6 | student, eligible prekindergarten student and dependent |
7 | member of a household. |
8 | (ii) After June 30, 2011, through June 30, 2012, |
9 | $12,000 for each eligible student, eligible |
10 | prekindergarten student and dependent member of a |
11 | household. |
12 | (iii) After June 30, 2012, through June 30, 2013, |
13 | $15,000 for each eligible student, eligible |
14 | prekindergarten student and dependent member of a |
15 | household. |
16 | (2) Beginning July 1, 2013, the Department of Community |
17 | and Economic Development shall annually adjust the income |
18 | allowance amounts under paragraph (1) to reflect any upward |
19 | changes in the Consumer Price Index for All Urban Consumers |
20 | for the Pennsylvania, New Jersey, Delaware and Maryland area |
21 | in the preceding 12 months and shall immediately submit the |
22 | adjusted amounts to the Legislative Reference Bureau for |
23 | publication as a notice in the Pennsylvania Bulletin. |
24 | "Innovative educational program." An advanced academic or |
25 | similar program that is not part of the regular academic program |
26 | of a public school but that enhances the curriculum or academic |
27 | program of a public school, chartered school as defined in |
28 | section 1376.1(a) or private school approved in accordance with |
29 | section 1376, or provides prekindergarten programs to public |
30 | school students, students of a chartered school as defined in |
|
1 | section 1376.1(a) or students of a private school approved in |
2 | accordance with section 1376. |
3 | "Maximum annual household income." |
4 | (1) Except as stated in paragraph (2) and subject to |
5 | paragraph (3), the following: |
6 | (i) Before July 1, 2011, not more than $50,000. |
7 | (ii) After June 30, 2011, through June 30, 2012, not |
8 | more than $60,000. |
9 | (iii) After June 30, 2012, not more than $75,000. |
10 | (2) With respect to an eligible student with a |
11 | disability, as calculated by multiplying: |
12 | (i) the sum of: |
13 | (A) the applicable amount under paragraph (1); |
14 | and |
15 | (B) the applicable income allowance; by |
16 | (ii) the applicable support level factor according |
17 | to the following table: |
18 | Support Level | Support Level Factor | 19 | 1 | 1.50 | 20 | 2 | 2.993 |
|
21 | (3) Beginning July 1, 2013, the Department of Community |
22 | and Economic Development shall annually adjust the income |
23 | amounts under paragraphs (1) and (2) to reflect any upward |
24 | changes in the Consumer Price Index for All Urban Consumers |
25 | for the Pennsylvania, New Jersey, Delaware and Maryland area |
26 | in the preceding 12 months and shall immediately submit the |
27 | adjusted amounts to the Legislative Reference Bureau for |
28 | publication as a notice in the Pennsylvania Bulletin. |
29 | "Pass-through entity." A partnership as defined in section |
30 | 301(n.0) of the act of March 4, 1971 (P.L.6, No.2), known as the |
|
1 | Tax Reform Code of 1971, a single-member limited liability |
2 | company treated as a disregarded entity for Federal income tax |
3 | purposes or a Pennsylvania S corporation as defined in section |
4 | 301(n.1) of the Tax Reform Code of 1971. |
5 | "Prekindergarten 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 that provides: |
9 | (1) a minimum of two hours of instructional and |
10 | developmental activities per day at least 60 days per school |
11 | year; or |
12 | (2) a minimum of two hours of instructional and |
13 | developmental activities per day at least 20 days over the |
14 | summer recess. |
15 | "Prekindergarten scholarship organization." A nonprofit |
16 | entity that: |
17 | (1) Either is exempt from Federal taxation under section |
18 | 501(c)(3) of the Internal Revenue Code of 1986 (Public Law |
19 | 99-514, 26 U.S.C. § 1 et seq.) or is operated as a separate |
20 | segregated fund by a scholarship organization that has been |
21 | qualified under section 2522-B. |
22 | (2) Contributes at least 80% of its annual cash receipts |
23 | to a prekindergarten scholarship program by expending or |
24 | otherwise irrevocably encumbering those funds for |
25 | distribution during the then current fiscal year of the |
26 | organization or during the next succeeding fiscal year of the |
27 | organization. |
28 | "Prekindergarten scholarship program." A program to provide |
29 | tuition to eligible prekindergarten students to attend a |
30 | prekindergarten program operated by or in conjunction with a |
|
1 | school located in this Commonwealth and that includes an |
2 | application and review process for the purpose of making awards |
3 | to eligible prekindergarten students and awards scholarships to |
4 | eligible prekindergarten students without limiting availability |
5 | to only students of one school. |
6 | "Public school." A public prekindergarten where compulsory |
7 | attendance requirements do not apply or a public kindergarten, |
8 | elementary school or secondary school at which the compulsory |
9 | attendance requirements of this Commonwealth may be met and that |
10 | meets the applicable requirements of Title VI of the Civil |
11 | Rights Act of 1964 (Public Law 88-352, 78 Stat. 241). |
12 | "Scholarship." An award under a scholarship program. |
13 | "Scholarship organization." A nonprofit entity that: |
14 | (1) is exempt from Federal taxation under section 501(c) |
15 | (3) of the Internal Revenue Code of 1986 (Public Law 99-514, |
16 | 26 U.S.C. § 1 et seq.); and |
17 | (2) contributes at least 80% of its annual cash receipts |
18 | to a scholarship program. |
19 | For purposes of this definition, a nonprofit entity contributes |
20 | its annual cash receipts to a scholarship program when it |
21 | expends or otherwise irrevocably encumbers those funds for |
22 | distribution during the then current fiscal year of the |
23 | nonprofit entity or during the next succeeding fiscal year of |
24 | the nonprofit entity. |
25 | "Scholarship program." A program to provide tuition to |
26 | eligible students to attend a school located in this |
27 | Commonwealth. A scholarship program must include an application |
28 | and review process for the purpose of making awards to eligible |
29 | students. The award of scholarships to eligible students shall |
30 | be made without limiting availability to only students of one |
|
1 | school. |
2 | "School." A public or nonpublic prekindergarten, |
3 | kindergarten, elementary school or secondary school at which the |
4 | compulsory attendance requirements of the Commonwealth may be |
5 | met and that meets the applicable requirements of Title VI of |
6 | the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241). |
7 | "School age." From the earliest admission age to a school's |
8 | prekindergarten or kindergarten program or, when no |
9 | prekindergarten or kindergarten program is provided, the |
10 | school's earliest admission age for beginners, until the end of |
11 | the school year the student attains 21 years of age or |
12 | graduation from high school, whichever occurs first. |
13 | "Special education school." A school or program within a |
14 | school that is designated specifically and exclusively for |
15 | students with any of the disabilities listed in 34 CFR § 300.8 |
16 | (relating to child with a disability) and meets one of the |
17 | following: |
18 | (1) is licensed under the act of January 28, 1988 |
19 | (P.L.24, No.11), known as the Private Academic Schools Act; |
20 | (2) is accredited by an accrediting association approved |
21 | by the State Board of Education; |
22 | (3) is a school for the blind or deaf receiving |
23 | Commonwealth appropriations; or |
24 | (4) is operated by or under the authority of a bona fide |
25 | religious institution or by the Commonwealth or a political |
26 | subdivision. |
27 | "Support level." The level of support needed by an eligible |
28 | student with a disability, as stated in the following matrix: |
29 | (1) Support level 1. The student is not enrolled in a |
30 | special education school. |
|
1 | (2) Support level 2. The student is enrolled in a |
2 | special education school. |
3 | "Tax credit." The educational improvement tax credit |
4 | established under this subarticle. |
5 | Section 2522-B. Qualification and application. |
6 | (a) Establishment.--In accordance with section 14 of Article |
7 | III of the Constitution of Pennsylvania, an educational |
8 | improvement tax credit program is established to enhance the |
9 | educational opportunities available to all students in this |
10 | Commonwealth. |
11 | (b) Information.--In order to qualify under this subarticle, |
12 | a scholarship organization, a prekindergarten scholarship |
13 | organization or an educational improvement organization must |
14 | submit information to the department that enables the department |
15 | to confirm that the organization is exempt from taxation under |
16 | section 501(c)(3) of the Internal Revenue Code of 1986 (Public |
17 | Law 99-514, 26 U.S.C. § 1 et seq.). |
18 | (c) Scholarship organizations and prekindergarten |
19 | scholarship organizations.--A scholarship organization or |
20 | prekindergarten scholarship organization must certify to the |
21 | department that the organization is eligible to participate in |
22 | the program established under this subarticle and must agree to |
23 | annually report the following information to the department by |
24 | September 1 of each year: |
25 | (1) (i) The number of scholarships awarded during the |
26 | immediately preceding school year to eligible |
27 | prekindergarten students. |
28 | (ii) The total and average amounts of scholarships |
29 | awarded during the immediately preceding school year to |
30 | eligible prekindergarten students. |
|
1 | (iii) The number of scholarships awarded during the |
2 | immediately preceding school year to eligible students in |
3 | grades kindergarten through eight. |
4 | (iv) The total and average amounts of scholarships |
5 | awarded during the immediately preceding school year to |
6 | eligible students in grades kindergarten through eight. |
7 | (v) The number of scholarships awarded during the |
8 | immediately preceding school year to eligible students in |
9 | grades 9 through 12. |
10 | (vi) The total and average amounts of scholarships |
11 | awarded during the immediately preceding school year to |
12 | eligible students in grades 9 through 12. |
13 | (vii) Where the scholarship organization or |
14 | prekindergarten scholarship organization collects |
15 | information on a county-by-county basis, the total number |
16 | and the total dollar amount of scholarships awarded |
17 | during the immediately preceding school year to residents |
18 | of each county in which the scholarship organization or |
19 | prekindergarten scholarship organization awarded |
20 | scholarships. |
21 | (2) The information required under paragraph (1) shall |
22 | be submitted on a form provided by the department. No later |
23 | than May 1 of each year, the department shall annually |
24 | distribute the sample forms, together with the forms on which |
25 | the reports are required to be made, to each listed |
26 | scholarship organization and prekindergarten scholarship |
27 | organization. |
28 | (3) The department may not require any other information |
29 | to be provided by scholarship organizations or |
30 | prekindergarten scholarship organizations, except as |
|
1 | expressly authorized in this subarticle. |
2 | (d) Educational improvement organization.-- |
3 | (1) An application submitted by an educational |
4 | improvement organization must describe its proposed |
5 | innovative educational program or programs in a form |
6 | prescribed by the department. In prescribing the form, the |
7 | department shall consult with the Department of Education as |
8 | necessary. The department shall review and approve or |
9 | disapprove the application. In order to be eligible to |
10 | participate in the program established under this subarticle, |
11 | an educational improvement organization must agree to |
12 | annually report the following information to the department |
13 | 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 |
|
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 the sample forms, together with the forms on which |
6 | 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 subarticle. |
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 subarticle 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 |
|
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 |
|
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 |
|
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. |
|
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 |
|
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 |
|
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 | Section 2. Repeals are as follows: |
13 | (1) The General Assembly declares that the repeal under |
14 | paragraph (2) is necessary to effectuate the addition of |
15 | Subarticle (C) of Article XXV-B of the act. |
16 | (2) Article XVII-F and section 2902-E(b) of the act of |
17 | March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of |
18 | 1971, are repealed. |
19 | Section 3. The provisions of Article XXV-B of the act are |
20 | severable. If any provision of that article or its application |
21 | to any person or circumstance is held invalid, the invalidity |
22 | shall not affect other provisions or applications of that |
23 | article which can be given effect without the invalid provision |
24 | or application. |
25 | Section 4. This act shall take effect as follows: |
26 | (1) The following provisions shall take effect July 1, |
27 | 2012, or immediately, whichever is later: |
28 | (i) The addition of Subarticle (C) of Article XXV-B |
29 | of the act. |
30 | (ii) Section 2 of this act. |
|
1 | (2) The remainder of this act shall take effect |
2 | immediately. |
|