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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY CHRISTIANA, QUIGLEY, S. H. SMITH, TURZAI, SAYLOR, REED, ADOLPH, AUMENT, B. BOYLE, V. BROWN, EMRICK, GABLER, GALLOWAY, GINGRICH, GODSHALL, GROVE, HARRIS, HELM, JAMES, KILLION, PAYTON, ROCK, SCAVELLO, SIMMONS, SONNEY, TALLMAN, K. BOYLE AND VEREB, JUNE 13, 2012 |
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| REFERRED TO COMMITTEE ON EDUCATION, JUNE 13, 2012 |
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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 educational improvement |
6 | tax credit and for the Educational Opportunity Scholarship |
7 | Program; and repealing provisions of the Tax Reform Code of |
8 | 1971 relating to educational improvement tax credit. |
9 | The General Assembly of the Commonwealth of Pennsylvania |
10 | hereby enacts as follows: |
11 | Section 1. The act of March 10, 1949 (P.L.30, No.14), known |
12 | as the Public School Code of 1949, is amended by adding articles |
13 | to read: |
14 | ARTICLE XIII-B |
15 | EDUCATIONAL IMPROVEMENT TAX CREDIT |
16 | Section 1301-B. Scope of article. |
17 | This article establishes the Educational Improvement Tax |
18 | Credit. |
19 | Section 1302-B. Definitions. |
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1 | The following words and phrases when used in this article |
2 | shall have the meanings given to them in this section unless the |
3 | context clearly indicates otherwise: |
4 | "Business firm." An entity authorized to do business in this |
5 | Commonwealth and subject to taxes imposed under Article XVI of |
6 | the act of May 17, 1921 (P.L.682, No.284), known as The |
7 | Insurance Company Law of 1921, or Article III, IV, VI, VII, |
8 | VIII, IX or XV of the act of March 4, 1971 (P.L.6, No.2), known |
9 | as the Tax Reform Code of 1971. The term includes a pass-through |
10 | entity. |
11 | "Contribution." A donation of cash, personal property or |
12 | services, the value of which is the net cost of the donation to |
13 | the donor or the pro rata hourly wage, including benefits, of |
14 | the individual performing the services. |
15 | "Department." The Department of Community and Economic |
16 | Development of the Commonwealth. |
17 | "Educational improvement organization." A nonprofit entity |
18 | which: |
19 | (1) is exempt from Federal taxation under section 501(c) |
20 | (3) of the Internal Revenue Code of 1986 (Public Law 99-514, |
21 | 26 U.S.C. § 1 et seq.); and |
22 | (2) contributes at least 80% of its annual receipts as |
23 | grants to a public school, a chartered school as defined in |
24 | section 1376.1 or a private school approved under section |
25 | 1376 for innovative educational programs. |
26 | For purposes of this definition, a nonprofit entity contributes |
27 | its annual cash receipts when it expends or otherwise |
28 | irrevocably encumbers those funds for expenditure during the |
29 | then current fiscal year of the nonprofit entity or during the |
30 | next succeeding fiscal year of the nonprofit entity. A nonprofit |
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1 | entity includes a school district foundation, public school |
2 | foundation, charter school foundation or cyber charter school |
3 | foundation. |
4 | "Eligible prekindergarten student." A student, including an |
5 | eligible student with a disability, who is enrolled in a |
6 | prekindergarten program and is a member of a household with a |
7 | maximum annual household income as increased by the applicable |
8 | income allowance. |
9 | "Eligible student." A school-age student, including an |
10 | eligible student with a disability, who is enrolled in a school |
11 | and is a member of a household with a maximum annual household |
12 | income as increased by the applicable income allowance. |
13 | "Eligible student with a disability." A prekindergarten |
14 | student or a school-age student who meets all of the following: |
15 | (1) Is enrolled in a special education school or has |
16 | otherwise been identified, in accordance with 22 Pa. Code Ch. |
17 | 14 (relating to special education services and programs), as |
18 | a "child with a disability," as defined in 34 CFR § 300.8 |
19 | (relating to child with a disability). |
20 | (2) Needs special education and related services. |
21 | (3) Is enrolled in a prekindergarten program or in a |
22 | school. |
23 | (4) Is a member of a household with a household income |
24 | of not more than the maximum annual household income. |
25 | "Household." An individual living alone or with the |
26 | following: a spouse, parent and any unemancipated minor |
27 | children, other unemancipated minor children who are related by |
28 | blood or marriage or other adults or unemancipated minor |
29 | children living in the household who are dependent upon the |
30 | individual. |
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1 | "Household income." All money or property received of |
2 | whatever nature and from whatever source derived. The term does |
3 | not include the following: |
4 | (1) Periodic payments for sickness and disability other |
5 | than regular wages received during a period of sickness or |
6 | disability. |
7 | (2) Disability, retirement or other payments arising |
8 | under workers' compensation acts, occupational disease acts |
9 | and similar legislation by any government. |
10 | (3) Payments commonly recognized as old-age or |
11 | retirement benefits paid to persons retired from service |
12 | after reaching a specific age or after a stated period of |
13 | employment. |
14 | (4) Payments commonly known as public assistance or |
15 | unemployment compensation payments made by a governmental |
16 | agency. |
17 | (5) Payments to reimburse actual expenses. |
18 | (6) Payments made by employers or labor unions for |
19 | programs covering hospitalization, sickness, disability or |
20 | death, supplemental unemployment benefits, strike benefits, |
21 | Social Security and retirement. |
22 | (7) Compensation received by United States servicemen |
23 | serving in a combat zone. |
24 | "Income allowance." |
25 | (1) Subject to paragraph (2), the amount of: |
26 | (i) Before July 1, 2012, $10,000 for each eligible |
27 | student, eligible prekindergarten student and dependent |
28 | member of a household. |
29 | (ii) After June 30, 2012, through June 30, 2013, |
30 | $12,000 for each eligible student, eligible |
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1 | prekindergarten student and dependent member of a |
2 | household. |
3 | (iii) After June 30, 2013, through June 30, 2014, |
4 | $15,000 for each eligible student, eligible |
5 | prekindergarten student and dependent member of a |
6 | household. |
7 | (2) Beginning July 1, 2014, the Department of Community |
8 | and Economic Development shall annually adjust the income |
9 | allowance amounts under paragraph (1) to reflect any upward |
10 | changes in the Consumer Price Index for All Urban Consumers |
11 | for the Pennsylvania, New Jersey, Delaware and Maryland area |
12 | in the preceding 12 months and shall immediately submit the |
13 | adjusted amounts to the Legislative Reference Bureau for |
14 | publication as a notice in the Pennsylvania Bulletin. |
15 | "Innovative educational program." An advanced academic or |
16 | similar program that is not part of the regular academic program |
17 | of a public school but that enhances the curriculum or academic |
18 | program of a public school, chartered school as defined in |
19 | section 1376.1(a) or private school approved in accordance with |
20 | section 1376, or provides prekindergarten programs to public |
21 | school students, students of a chartered school as defined in |
22 | section 1376.1(a) or students of a private school approved in |
23 | accordance with section 1376. |
24 | "Maximum annual household income." |
25 | (1) Except as stated in paragraph (2) and subject to |
26 | paragraph (3), the following: |
27 | (i) Before July 1, 2012, not more than $50,000. |
28 | (ii) After June 30, 2012, through June 30, 2013, not |
29 | more than $60,000. |
30 | (iii) After June 30, 2013, not more than $75,000. |
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1 | (2) With respect to an eligible student with a |
2 | disability, as calculated by multiplying: |
3 | (i) the sum of: |
4 | (A) the applicable amount under paragraph (1); |
5 | and |
6 | (B) the applicable income allowance; by |
7 | (ii) the applicable support level factor according |
8 | to the following table: |
9 | Support Level | Support Level Factor | 10 | 1 | 1.50 | 11 | 2 | 2.993 |
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12 | (3) Beginning July 1, 2014, the Department of Community |
13 | and Economic Development shall annually adjust the income |
14 | amounts under paragraphs (1) and (2) to reflect any upward |
15 | changes in the Consumer Price Index for All Urban Consumers |
16 | for the Pennsylvania, New Jersey, Delaware and Maryland area |
17 | in the preceding 12 months and shall immediately submit the |
18 | adjusted amounts to the Legislative Reference Bureau for |
19 | publication as a notice in the Pennsylvania Bulletin. |
20 | "Opportunity scholarship organization." A nonprofit entity |
21 | that: |
22 | (1) is exempt from Federal taxation under section 501(c) |
23 | (3) of the Internal Revenue Code of 1986 (Public Law 99-514, |
24 | 26 U.S.C. § 1 et seq.); and |
25 | (2) contributes at least 95% of its annual cash receipts |
26 | to an opportunity scholarship program. |
27 | For purposes of this definition, a nonprofit entity contributes |
28 | its annual cash receipts to an opportunity scholarship program |
29 | when it expends or otherwise irrevocably encumbers those funds |
30 | for distribution to eligible students during the then current |
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1 | fiscal year of the nonprofit entity or during the next |
2 | succeeding fiscal year of the nonprofit entity. An opportunity |
3 | scholarship organization may be operated as a separate, |
4 | segregated fund of a scholarship organization. |
5 | "Opportunity scholarship program." The program operated |
6 | under the provisions of Article XXII-C to provide tuition and |
7 | school-related fees to eligible students to attend a school |
8 | located in this Commonwealth. A scholarship program shall |
9 | include an application and review process for the purpose of |
10 | making awards to eligible students. The award of scholarships to |
11 | students shall be made without limiting availability to only |
12 | students of one school. |
13 | "Pass-through entity." A partnership as defined in section |
14 | 301(n.0) of the act of March 4, 1971 (P.L.6, No.2), known as the |
15 | Tax Reform Code of 1971, a single-member limited liability |
16 | company treated as a disregarded entity for Federal income tax |
17 | purposes or a Pennsylvania S corporation as defined in section |
18 | 301(n.1) of the Tax Reform Code of 1971. |
19 | "Prekindergarten program." A program of instruction for |
20 | three-year-old or four-year-old students that utilizes a |
21 | curriculum aligned with the curriculum of the school with which |
22 | it is affiliated and that provides: |
23 | (1) a minimum of two hours of instructional and |
24 | developmental activities per day at least 60 days per school |
25 | year; or |
26 | (2) a minimum of two hours of instructional and |
27 | developmental activities per day at least 20 days over the |
28 | summer recess. |
29 | "Prekindergarten scholarship organization." A nonprofit |
30 | entity that: |
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1 | (1) Is exempt from Federal taxation under section 501(c) |
2 | (3) of the Internal Revenue Code of 1986 (Public Law 99-514, |
3 | 26 U.S.C. § 1 et seq.) or is operated as a separate |
4 | segregated fund by a scholarship organization that has been |
5 | qualified under section 1303-B. |
6 | (2) Contributes at least 80% of its annual cash receipts |
7 | to a prekindergarten scholarship program by expending or |
8 | otherwise irrevocably encumbering those funds for |
9 | distribution during the then current fiscal year of the |
10 | organization or during the next succeeding fiscal year of the |
11 | organization. |
12 | "Prekindergarten scholarship program." A program to provide |
13 | tuition to eligible prekindergarten students to attend a |
14 | prekindergarten program operated by or in conjunction with a |
15 | school located in this Commonwealth and that includes an |
16 | application and review process for the purpose of making awards |
17 | to eligible prekindergarten students and awards scholarships to |
18 | eligible prekindergarten students without limiting availability |
19 | to only students of one school. |
20 | "Public school." A public prekindergarten where compulsory |
21 | attendance requirements do not apply or a public kindergarten, |
22 | elementary school or secondary school at which the compulsory |
23 | attendance requirements of the Commonwealth may be met and that |
24 | meets the applicable requirements of Title VI of the Civil |
25 | Rights Act of 1964 (Public Law 88-352, 78 Stat. 241). |
26 | "Scholarship." An award under a scholarship program. |
27 | "Scholarship organization." A nonprofit entity that: |
28 | (1) is exempt from Federal taxation under section 501(c) |
29 | (3) of the Internal Revenue Code of 1986 (Public Law 99-514, |
30 | 26 U.S.C. § 1 et seq.); and |
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1 | (2) contributes at least 80% of its annual cash receipts |
2 | to a scholarship program. |
3 | For purposes of this definition, a nonprofit entity contributes |
4 | its annual cash receipts to a scholarship program when it |
5 | expends or otherwise irrevocably encumbers those funds for |
6 | distribution during the then current fiscal year of the |
7 | nonprofit entity or during the next succeeding fiscal year of |
8 | the nonprofit entity. |
9 | "Scholarship program." A program to provide tuition to |
10 | eligible students to attend a school located in this |
11 | Commonwealth. A scholarship program shall include an application |
12 | and review process for the purpose of making awards to eligible |
13 | students. The award of scholarships to eligible students shall |
14 | be made without limiting availability to only students of one |
15 | school. |
16 | "School." A public or nonpublic prekindergarten, |
17 | kindergarten, elementary school or secondary school at which the |
18 | compulsory attendance requirements of the Commonwealth may be |
19 | met and that meets the applicable requirements of Title VI of |
20 | the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241). |
21 | "School age." From the earliest admission age to a school's |
22 | prekindergarten or kindergarten program or, when no |
23 | prekindergarten or kindergarten program is provided, the |
24 | school's earliest admission age for beginners, until the end of |
25 | the school year the student attains 21 years of age or |
26 | graduation from high school, whichever occurs first. |
27 | "Special education school." A school or program within a |
28 | school that is designated specifically and exclusively for |
29 | students with any of the disabilities listed in 34 CFR § 300.8 |
30 | (relating to child with a disability) and meets one of the |
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1 | following: |
2 | (1) is licensed under the act of January 28, 1988 |
3 | (P.L.24, No.11), known as the Private Academic Schools Act; |
4 | (2) is accredited by an accrediting association approved |
5 | by the State Board of Education; |
6 | (3) is a school for students who are visually or hearing |
7 | impaired receiving Commonwealth appropriations; or |
8 | (4) is operated by or under the authority of a bona fide |
9 | religious institution or by the Commonwealth or a political |
10 | subdivision. |
11 | "Support level." The level of support needed by an eligible |
12 | student with a disability, as follows: |
13 | (1) Support level 1. The student is not enrolled in a |
14 | special education school. |
15 | (2) Support level 2. The student is enrolled in a |
16 | special education school. |
17 | "Tax credit." The educational improvement tax credit |
18 | established under this article. |
19 | Section 1303-B. Qualification and application. |
20 | (a) Establishment.--In accordance with section 14 of Article |
21 | III of the Constitution of Pennsylvania, an educational |
22 | improvement tax credit program is established to enhance the |
23 | educational opportunities available to all students in this |
24 | Commonwealth. |
25 | (b) Information.--In order to qualify under this article, a |
26 | scholarship organization, a prekindergarten scholarship |
27 | organization, an opportunity scholarship organization or an |
28 | educational improvement organization must submit information to |
29 | the department that enables the department to confirm that the |
30 | organization is exempt from taxation under section 501(c)(3) of |
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1 | the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. |
2 | § 1 et seq.). |
3 | (c) Scholarship organizations, prekindergarten scholarship |
4 | organizations and opportunity scholarship organizations.--A |
5 | scholarship organization, prekindergarten scholarship |
6 | organization or opportunity scholarship organization must |
7 | certify to the department that the organization is eligible to |
8 | participate in the program established under this article and |
9 | must agree to annually report the following information to the |
10 | department by September 1 of each year: |
11 | (1) (i) The number of scholarships awarded during the |
12 | immediately preceding school year to eligible prekindergarten |
13 | students. |
14 | (ii) The total and average amounts of scholarships |
15 | awarded during the immediately preceding school year to |
16 | eligible prekindergarten students. |
17 | (iii) The number of scholarships awarded during the |
18 | immediately preceding school year to eligible students in |
19 | grades kindergarten through eight. |
20 | (iv) The total and average amounts of scholarships |
21 | awarded during the immediately preceding school year to |
22 | eligible students in grades kindergarten through eight. |
23 | (v) The number of scholarships awarded during the |
24 | immediately preceding school year to eligible students in |
25 | grades nine through 12. |
26 | (vi) The total and average amounts of scholarships |
27 | awarded during the immediately preceding school year to |
28 | eligible students in grades nine through 12. |
29 | (vii) Where the scholarship organization, |
30 | prekindergarten scholarship organization or opportunity |
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1 | scholarship organization collects information on a |
2 | county-by-county basis, the total number and the total |
3 | dollar amount of scholarships awarded during the |
4 | immediately preceding school year to residents of each |
5 | county in which the scholarship organization, |
6 | prekindergarten scholarship organization or opportunity |
7 | scholarship organization awarded scholarships. |
8 | (2) The information required under paragraph (1) shall |
9 | be submitted on a form provided by the department. No later |
10 | than May 1 of each year, the department shall annually |
11 | distribute the sample forms, together with the forms on which |
12 | the reports are required to be made, to each listed |
13 | scholarship organization, prekindergarten scholarship |
14 | organization and opportunity scholarship organization. |
15 | (3) The department may not require any other information |
16 | to be provided by scholarship organizations, prekindergarten |
17 | scholarship organizations or opportunity scholarship |
18 | organizations, except as expressly authorized in this |
19 | article. |
20 | (d) Educational improvement organization.-- |
21 | (1) An application submitted by an educational |
22 | improvement organization must describe its proposed |
23 | innovative educational program or programs in a form |
24 | prescribed by the department. In prescribing the form, the |
25 | department shall consult with the Department of Education as |
26 | necessary. The department shall review and approve or |
27 | disapprove the application. In order to be eligible to |
28 | participate in the program established under this article, an |
29 | educational improvement organization must agree to annually |
30 | report the following information to the department by |
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1 | September 1 of each year: |
2 | (i) The name of the innovative educational program |
3 | or programs and the total amount of the grant or grants |
4 | made to those programs during the immediately preceding |
5 | school year. |
6 | (ii) A description of how each grant was utilized |
7 | during the immediately preceding school year and a |
8 | description of any demonstrated or expected innovative |
9 | educational improvements. |
10 | (iii) The names of the public schools and school |
11 | districts where innovative educational programs that |
12 | received grants during the immediately preceding school |
13 | year were implemented. |
14 | (iv) Where the educational improvement organization |
15 | collects information on a county-by-county basis, the |
16 | total number and the total dollar amount of grants made |
17 | during the immediately preceding school year for programs |
18 | at public schools in each county in which the educational |
19 | improvement organization made grants. |
20 | (2) The information required under paragraph (1) shall |
21 | be submitted on a form provided by the department. No later |
22 | than May 1 of each year, the department shall annually |
23 | distribute the sample forms, together with the forms on which |
24 | the reports are required to be made, to each listed |
25 | educational improvement organization. |
26 | (3) The department may not require any other information |
27 | to be provided by educational improvement organizations, |
28 | except as expressly authorized in this article. |
29 | (e) Notification.--The department shall notify the |
30 | scholarship organization, prekindergarten scholarship |
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1 | organization, opportunity scholarship organization or |
2 | educational improvement organization that the organization meets |
3 | the requirements of this article for that fiscal year no later |
4 | than 60 days after the organization has submitted the |
5 | information required under this section. |
6 | (f) Publication.--The department shall annually publish a |
7 | list of each scholarship organization, prekindergarten |
8 | scholarship organization, opportunity scholarship organization |
9 | or educational improvement organization qualified under this |
10 | section in the Pennsylvania Bulletin. The list shall also be |
11 | posted and updated as necessary on the publicly accessible |
12 | Internet website of the department. |
13 | Section 1304-B. Application. |
14 | (a) Scholarship organization, prekindergarten scholarship |
15 | organization or opportunity scholarship organization.--A |
16 | business firm shall apply to the department for a tax credit. A |
17 | business firm shall receive a tax credit if the scholarship |
18 | organization, prekindergarten scholarship organization or |
19 | opportunity scholarship organization that receives the |
20 | contribution appears on the list established under section 1303- |
21 | B(f). |
22 | (b) Educational improvement organization.--A business firm |
23 | must apply to the department for a tax credit. A business firm |
24 | shall receive a tax credit if the department has approved the |
25 | program provided by the educational improvement organization |
26 | that receives the contribution. |
27 | (c) Availability of tax credits.--Tax credits shall be made |
28 | available by the department on a first-come-first-served basis |
29 | within the limitations established under section 1306-B(a). |
30 | (d) Contributions.--A contribution by a business firm to a |
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1 | scholarship organization, prekindergarten scholarship |
2 | organization, opportunity scholarship organization or |
3 | educational improvement organization shall be made no later than |
4 | 60 days following the approval of an application under |
5 | subsection (a) or (b). |
6 | Section 1305-B. Tax credit. |
7 | (a) Scholarship organizations, educational improvement |
8 | organizations or opportunity scholarship organizations.--In |
9 | accordance with section 1306-B(a), the Department of Revenue |
10 | shall grant a tax credit against any tax due under Article XVI |
11 | of the act of May 17, 1921 (P.L.682, No.284), known as The |
12 | Insurance Company Law of 1921, or Article III, IV, VI, VII, |
13 | VIII, IX or XV of the act of March 4, 1971 (P.L.6, No.2), known |
14 | as the Tax Reform Code of 1971, to a business firm providing |
15 | proof of a contribution to a scholarship organization, |
16 | opportunity scholarship organization or educational improvement |
17 | organization in the taxable year in which the contribution is |
18 | made which shall not exceed 75% of the total amount contributed |
19 | during the taxable year by the business firm. For the fiscal |
20 | year 2012-2013, the tax credit shall not exceed $400,000 |
21 | annually per business firm for contributions made to scholarship |
22 | organizations, educational improvement organizations or |
23 | opportunity scholarship organizations. For the fiscal year |
24 | 2013-2014 and each fiscal year thereafter, the tax credit shall |
25 | not exceed $750,000 annually per business firm for contributions |
26 | made to scholarship organizations, educational improvement |
27 | organizations or opportunity scholarship organization. |
28 | (b) Additional amount.--The Department of Revenue shall |
29 | grant a tax credit of up to 90% of the total amount contributed |
30 | during the taxable year if the business firm provides a written |
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1 | commitment to provide the scholarship organization, opportunity |
2 | scholarship organization or educational improvement organization |
3 | with the same amount of contribution for two consecutive tax |
4 | years. The business firm must provide the written commitment |
5 | under this subsection to the department at the time of |
6 | application. |
7 | (c) Prekindergarten scholarship organizations.--In |
8 | accordance with section 1306-B(a), the Department of Revenue |
9 | shall grant a tax credit against any tax due under Article XVI |
10 | of the act of May 17, 1921 (P.L.682, No.284), known as The |
11 | Insurance Company Law of 1921, or Article III, IV, VI, VII, |
12 | VIII, IX or XV of the Tax Reform Code of 1971 to a business firm |
13 | providing proof of a contribution to a prekindergarten |
14 | scholarship organization in the taxable year in which the |
15 | contribution is made which shall be equal to 100% of the first |
16 | $10,000 contributed during the taxable year by the business |
17 | firm, and which shall not exceed 90% of the remaining amount |
18 | contributed during the taxable year by the business firm. For |
19 | the fiscal year such tax credit shall not exceed $150,000 |
20 | annually per business firm for contributions made to |
21 | prekindergarten scholarship organizations. |
22 | (d) Combination of tax credits.--A business firm may receive |
23 | tax credits from the Department of Revenue in any tax year for |
24 | any combination of contributions under subsection (a), (b) or |
25 | (c). In no case may a business firm receive tax credits in any |
26 | tax year in excess of $400,000 for contributions under |
27 | subsections (a) and (b) made during fiscal year 2012-2013, or in |
28 | excess of $750,000 for contributions under subsections (a) and |
29 | (b) made during any fiscal year thereafter. In no case shall a |
30 | business firm receive tax credits in any tax year in excess of |
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1 | $150,000 for contributions under subsection (c). |
2 | (e) Pass-through entity.-- |
3 | (1) If a pass-through entity does not intend to use all |
4 | approved tax credits under this section, it may elect in |
5 | writing to transfer all or a portion of the tax credit to |
6 | shareholders, members or partners in proportion to the share |
7 | of the entity's distributive income to which the shareholder, |
8 | member or partner is entitled for use in the taxable year in |
9 | which the contribution is made or in the taxable year |
10 | immediately following the year in which the contribution is |
11 | made. The election shall designate the year in which the |
12 | transferred tax credits are to be used and shall be made |
13 | according to procedures established by the Department of |
14 | Revenue. |
15 | (2) A pass-through entity and a shareholder, member or |
16 | partner of a pass-through entity shall not claim the tax |
17 | credit under this section for the same contribution. |
18 | (3) The shareholder, member or partner may not carry |
19 | forward, carry back, obtain a refund of or sell or assign the |
20 | tax credit. |
21 | (4) The shareholder, member or partner may claim the |
22 | credit on a joint return, but the tax credit may not exceed |
23 | the separate income of that shareholder, member or partner. |
24 | (f) Restriction on applicability of credits.--No tax credits |
25 | shall be applied against any tax withheld by an employer from an |
26 | employee under Article III of the Tax Reform Code of 1971. |
27 | (g) Time of application for credits.-- |
28 | (1) Except as provided in paragraph (2), the department |
29 | may accept applications for tax credits available during a |
30 | fiscal year no earlier than July 1 of each fiscal year. |
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1 | (2) The application of any business firm for tax credits |
2 | available during a fiscal year as part of the second year of |
3 | a two-year commitment or as a renewal of a two-year |
4 | commitment that was fulfilled in the previous fiscal year may |
5 | be accepted no earlier than May 15 preceding the fiscal year. |
6 | Section 1306-B. Limitations. |
7 | (a) Amount.-- |
8 | (1) (i) For the fiscal year 2012-2013, the total |
9 | aggregate amount of all tax credits approved shall not |
10 | exceed $200,000,000. |
11 | (ii) Not more than $62,000,000 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 $30,000,000 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 | (v) Not more than $100,000,000 of the total amount |
24 | of all tax credits approved shall be used to provide tax |
25 | credits for contributions from business firms to |
26 | opportunity scholarship organizations. |
27 | (2) (i) For the fiscal year 2013-2014, the total |
28 | aggregate amount of all tax credits approved shall not |
29 | exceed $250,000,000. |
30 | (ii) Not more than $62,000,000 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 scholarship organizations. |
4 | (iii) Not more than $30,000,000 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 educational improvement organizations. |
8 | (iv) Not more than $8,000,000 of the total aggregate |
9 | amount of all tax credits approved shall be used to |
10 | provide tax credits for contributions from business firms |
11 | to prekindergarten scholarship organizations. |
12 | (v) Not more than $150,000,000 of the total amount |
13 | of all tax credits approved shall be used to provide tax |
14 | credits for contributions from business firms to |
15 | opportunity scholarship organizations. |
16 | (3) (i) Subject to the annual adjustment provided for |
17 | in paragraph (4), in the fiscal year 2014-2015 and each |
18 | fiscal year thereafter, the total aggregate amount of all |
19 | tax credits approved shall not exceed $300,000,000. |
20 | (ii) Not more than $62,000,000 of the total |
21 | aggregate amount of all tax credits approved shall be |
22 | used to provide tax credits for contributions from |
23 | business firms to scholarship organizations. |
24 | (iii) Not more than $30,000,000 of the total |
25 | aggregate amount of all tax credits approved shall be |
26 | used to provide tax credits for contributions from |
27 | business firms to educational improvement organizations. |
28 | (iv) Not more than $8,000,000 of the total aggregate |
29 | amount of all tax credits approved shall be used to |
30 | provide tax credits for contributions from business firms |
|
1 | to prekindergarten scholarship organizations. |
2 | (v) Not more than $200,000,000 of the total amount |
3 | of all tax credits approved shall be used to provide tax |
4 | credits for contributions from business firms to |
5 | opportunity scholarship organizations. |
6 | (4) Beginning in the fiscal year 2015-2016, in any |
7 | fiscal year in which the total aggregate amount of all tax |
8 | credits approved for the prior fiscal year is equal to or |
9 | greater than 90% of the total aggregate amount of all tax |
10 | credits available for the prior fiscal year, the total |
11 | aggregate amount of all tax credits available and the amounts |
12 | specified in subparagraphs (3)(ii), (iii), (iv) and (v) shall |
13 | each increase by 5%. The department shall publish on its |
14 | Internet website the total aggregate amount of all tax |
15 | credits available when the amount is increased under this |
16 | paragraph. |
17 | (b) Activities.--No tax credit shall be approved for |
18 | activities that are a part of a business firm's normal course of |
19 | business. |
20 | (c) Tax liability.-- |
21 | (1) Except as provided in paragraph (2), a tax credit |
22 | granted for any one taxable year may not exceed the tax |
23 | liability of a business firm. |
24 | (2) In the case of a credit granted to a pass-through |
25 | entity which elects to transfer the credit according to |
26 | section 1305-B(e), a tax credit granted for any one taxable |
27 | year and transferred to a shareholder, member or partner may |
28 | not exceed the tax liability of the shareholder, member or |
29 | partner. |
30 | (d) Use.--A tax credit not used by the applicant in the |
|
1 | taxable year the contribution was made or in the year designated |
2 | by the shareholder, member or partner to whom the credit was |
3 | transferred under section 1305-B(e) may not be carried forward |
4 | or carried back and is not refundable or transferable. |
5 | (e) Nontaxable income.--A scholarship received by an |
6 | eligible student or eligible prekindergarten student shall not |
7 | be considered to be taxable income for the purposes of Article |
8 | III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax |
9 | Reform Code of 1971. |
10 | Section 1307-B. Lists. |
11 | The Department of Revenue shall provide to the General |
12 | Assembly by June 30 of each year a list of all scholarship |
13 | organizations, prekindergarten scholarship organizations, |
14 | opportunity scholarship organizations and educational |
15 | improvement organizations that receive contributions from |
16 | business firms granted a tax credit. |
17 | Section 1308-B. Guidelines. |
18 | The department, in consultation with the Department of |
19 | Education, shall develop guidelines to determine the eligibility |
20 | of an innovative educational program. |
21 | ARTICLE XIII-C |
22 | EDUCATIONAL OPPORTUNITY SCHOLARSHIP PROGRAM |
23 | Section 1301-C. Scope of article. |
24 | This article relates to the Educational Opportunity |
25 | Scholarship Program. |
26 | Section 1302-C. Legislative findings. |
27 | The General Assembly finds that: |
28 | (1) Parents are best suited to choose the most |
29 | appropriate means of education for their school-age children. |
30 | (2) Providing diverse educational opportunities for the |
|
1 | children of this Commonwealth is a civic imperative and a |
2 | matter of serious concern. |
3 | (3) The importance of quality education and the need to |
4 | maintain and operate an effective system of education make it |
5 | imperative to provide for the increased availability of |
6 | diverse opportunities, including both public and nonpublic |
7 | programs of education, to benefit all citizens of this |
8 | Commonwealth. |
9 | (4) Public schools are the foundation of the system of |
10 | education in this Commonwealth. Further, Pennsylvania's |
11 | longstanding tradition of local control of public education |
12 | allows communities to adapt their public school programs to |
13 | meet local needs. For these reasons, providing the |
14 | opportunity for interdistrict school choice is a critical |
15 | means of providing families with increased educational |
16 | options within the traditional public school system. |
17 | (5) It is the long-term goal of the General Assembly to |
18 | offer assistance to all families in this Commonwealth, to |
19 | provide every child in this Commonwealth with diverse |
20 | educational opportunities and options. |
21 | (6) As an initial step toward the long-term goal of |
22 | offering assistance to all Pennsylvania families, this |
23 | article provides assistance to disadvantaged school-age |
24 | children in this Commonwealth who would otherwise attend |
25 | persistently low-achieving schools. |
26 | (7) Many disadvantaged school-age residents of this |
27 | Commonwealth enjoy comparatively fewer educational |
28 | opportunities or options than school-age residents who |
29 | possess greater economic means. |
30 | (8) The accessibility to families of nonpublic |
|
1 | educational alternatives decreases the burdens on the |
2 | Commonwealth and local school districts and increases the |
3 | range of educational choices available to Pennsylvania |
4 | families, thus providing a benefit to all citizens of this |
5 | Commonwealth. |
6 | (9) The General Assembly intends the program of |
7 | educational choice provided in this article to be but one |
8 | element of its overall program of providing funds to assure |
9 | the availability of educational opportunities for students |
10 | enrolled in the schools of this Commonwealth. A comparatively |
11 | far greater proportion of public funds are and, upon |
12 | implementation of an educational choice program, will |
13 | continue to be devoted to the benefit of students enrolled in |
14 | the public schools of this Commonwealth. Therefore, the |
15 | General Assembly intends that an educational choice program |
16 | be viewed as an integral part of its overall program of |
17 | educational funding, and not as an isolated individual |
18 | program. |
19 | (10) A program of financial assistance to enhance |
20 | educational choice in this Commonwealth, as one element of |
21 | the Commonwealth's plan for funding diverse educational |
22 | opportunities, will greatly aid efforts to equalize |
23 | educational opportunities for the citizens of this |
24 | Commonwealth, will better prepare Commonwealth citizens to |
25 | compete for employment opportunities, will foster development |
26 | of a more capable and better-educated work force and will |
27 | better enable the Commonwealth to fulfill its obligation of |
28 | providing children the opportunity of receiving a quality |
29 | education. |
30 | Section 1303-C. Definitions. |
|
1 | The following words and phrases, when used in this article, |
2 | shall have the meanings given to them in this section unless the |
3 | context clearly indicates otherwise: |
4 | "Attendance boundary." A geographic area of residence used |
5 | by a school district to assign a student to a public school. |
6 | "Average daily membership." As defined in section 2501(3). |
7 | "Business firm." An entity authorized to do business in this |
8 | Commonwealth and subject to taxes imposed under Article XVI of |
9 | the act of May 17, 1921 (P.L.682, No.284), known as The |
10 | Insurance Company Law of 1921, or Article III, IV, VI, VII, |
11 | VIII, IX or XV of the act of March 4, 1971 (P.L.6, No.2), known |
12 | as the Tax Reform Code of 1971. The term includes a pass-through |
13 | entity. |
14 | "Department." The Department of Education of the |
15 | Commonwealth. |
16 | "Eligible student." A student who meets the eligibility |
17 | requirements established in section 1304-C. |
18 | "Household income." As defined in section 1302-B. |
19 | "Kindergarten." A one-year formal kindergarten program that |
20 | occurs during the school year immediately prior to first grade. |
21 | "Low-achieving school." A public elementary or secondary |
22 | school within this Commonwealth that ranked in the lowest 15% of |
23 | its designation as elementary or secondary for the previous |
24 | school year based on combined mathematics and reading scores |
25 | from the annual assessment administered in the previous school |
26 | year. The term shall not include a charter school, cyber charter |
27 | school or area vocational-technical school. |
28 | "Nonpublic school." A nonprofit school, other than a public |
29 | school: |
30 | (1) which is located in this Commonwealth; |
|
1 | (2) in which a Commonwealth resident may legally fulfill |
2 | the compulsory school attendance requirements of this act; |
3 | and |
4 | (3) which meets the applicable requirements of Title VI |
5 | of the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. |
6 | 241). |
7 | The term includes a full-time or part-time kindergarten program |
8 | operated by a nonpublic school. |
9 | "Opportunity scholarship organization." An organization that |
10 | has been qualified to distribute opportunity scholarships under |
11 | section 1303-B. |
12 | "Parent." A Commonwealth resident who is a parent having |
13 | legal custody or guardianship of a school-age child. The term |
14 | shall also include any Commonwealth resident who keeps in his |
15 | home a child of school age and supports the child gratis as if |
16 | the child were his own. |
17 | "Participating nonpublic school." A nonpublic school which |
18 | notifies the department under section 1306-C that it wishes to |
19 | participate in the program established in this article. |
20 | "Participating nonresident school district." A school |
21 | district which notifies the department under section 1306-C that |
22 | it wishes to participate in the program established in this |
23 | article. |
24 | "Program." The Educational Opportunity Scholarship Program |
25 | established under this article. |
26 | "Recipient." An Educational Opportunity Scholarship |
27 | recipient. |
28 | "Scholarship." An Educational Opportunity Scholarship |
29 | awarded to a scholarship recipient under this article to pay |
30 | tuition and school-related fees for the recipient to attend a |
|
1 | participating nonresident school district school or |
2 | participating nonpublic school. |
3 | "School-age student." A child enrolling in kindergarten or |
4 | in grades one through 12. |
5 | "School district of residence." The school district in which |
6 | a school-age student resides. |
7 | "School-related fees." Fees charged by a school to all |
8 | students for books, instructional materials, technology |
9 | equipment and services, transportation, uniforms and activities. |
10 | "Student." A school-age resident who attends or is about to |
11 | attend a full-time kindergarten, a part-time kindergarten, an |
12 | elementary school or a secondary school within this |
13 | Commonwealth. |
14 | "Student with a disability." As defined in 22 Pa. Code § |
15 | 14.101 (relating to definitions). |
16 | Section 1304-C. Educational Opportunity Scholarship Program. |
17 | (a) Establishment.--Beginning with the 2012-2013 school |
18 | year, the Educational Opportunity Scholarship Program is |
19 | established to provide scholarships to eligible students who |
20 | reside within the attendance areas of low-achieving schools to |
21 | pay tuition and school-related fees to attend a school within a |
22 | participating nonresident school district or participating |
23 | nonpublic school selected by the student's parents. |
24 | (b) Eligibility.--The Educational Opportunity Scholarship |
25 | Program shall be available to all students who reside within the |
26 | attendance boundary of a low-achieving school as of the first |
27 | day of classes of the school year for which the educational |
28 | opportunity scholarship is to be awarded, and whose household |
29 | income does not exceed $75,000. Notwithstanding the fact that a |
30 | school may be removed from the list of low-achieving schools, |
|
1 | any child enrolled in a nonresident public school or a |
2 | participating nonpublic school who received an educational |
3 | opportunity scholarship under this article in the prior school |
4 | year shall receive an educational opportunity scholarship in |
5 | each school year of enrollment under the educational opportunity |
6 | scholarship program, provided that the child remain eligible. |
7 | For purposes of this subsection, the residence of a child shall |
8 | be determined under section 1302. |
9 | (c) List of low-achieving schools to be published.--By July |
10 | 15, 2012, and by February 1 of each year thereafter, the |
11 | department shall publish on the department's publicly accessible |
12 | Internet website and in the Pennsylvania Bulletin a list of low- |
13 | achieving schools that will be in effect for purposes of this |
14 | article for the following school year. The department shall |
15 | publish the list based upon results from the annual assessment |
16 | administered in the previous school year. |
17 | (d) Notice.-- |
18 | (1) For each school year, by a date established by the |
19 | department, each school district that receives a notification |
20 | from the department under section 1307-C that it has at least |
21 | one low-achieving school shall post on its publicly |
22 | accessible Internet website notice of all of the following: |
23 | (i) A description of the Educational Opportunity |
24 | Scholarship Program. |
25 | (ii) Instructions for applying for an Educational |
26 | Opportunity Scholarship. |
27 | (iii) A list of schools in the school district that |
28 | have been designated by the department as low-achieving |
29 | schools. |
30 | (iv) Notice that a parent must contact directly the |
|
1 | participating nonresident school district or |
2 | participating nonpublic school in which the parent's |
3 | child seeks to enroll for application instructions. |
4 | (2) The notice shall be in a form provided by the |
5 | department. |
6 | Section 1305-C. Educational Opportunity Scholarships. |
7 | (a) Funding.--The total amount of Educational Opportunity |
8 | Scholarships provided for shall be limited to the funds |
9 | accumulated as a result of contributions made by business firms |
10 | to opportunity scholarship organizations. |
11 | (b) Amount.--The maximum amount of a scholarship awarded to |
12 | a student without a disability shall be $8,500. The maximum |
13 | amount of a scholarship awarded to a student with a disability |
14 | shall be $15,000. In no case shall the combined amount of the |
15 | scholarship awarded to a scholarship recipient and any |
16 | additional financial assistance provided to a recipient exceed |
17 | the tuition rate and school-related fees for the participating |
18 | nonpublic school or nonresident public school district. |
19 | (c) Tuition rates.--No participating nonresident school |
20 | district or participating nonpublic school may charge an |
21 | eligible recipient a higher tuition rate or school-related fee |
22 | than the participating nonresident school district or |
23 | participating nonpublic school would have charged to a similarly |
24 | situated student who had not received an opportunity |
25 | scholarship. Notwithstanding the provisions of section 2561, a |
26 | participating nonresident school district may charge scholarship |
27 | recipients a tuition rate that is lower than that charged to |
28 | students who are not recipients of scholarships. |
29 | (d) Home schooling.--A scholarship shall not be awarded for |
30 | enrollment in a home education program under section 1327.1. |
|
1 | (e) Taxation.--A scholarship shall not be considered taxable |
2 | income for purposes of Article III of the act of March 4, 1971 |
3 | (P.L.6, No.2), known as the Tax Reform Code of 1971, or a local |
4 | taxing ordinance. |
5 | (f) Financial assistance.--A scholarship shall not |
6 | constitute financial assistance or an appropriation to the |
7 | participating nonpublic school attended by a scholarship |
8 | recipient. |
9 | Section 1306-C. Participation in the program. |
10 | (a) Voluntary.--The determination by a participating |
11 | nonresident school district or participating nonpublic school to |
12 | enroll students as part of the program is voluntary. |
13 | (b) Notice.-- |
14 | (1) By August 1, 2012, and by February 1 of each year |
15 | thereafter, a school district or nonpublic school that wishes |
16 | to enroll scholarship recipients as part of the program must |
17 | notify the department of its intent to participate. |
18 | (2) For a school district, the notice under paragraph |
19 | (1) must be submitted on a form developed by the department |
20 | immediately upon the effective date of this article and shall |
21 | specify all of the following: |
22 | (i) The schools within the school district which |
23 | eligible scholarship recipients may attend. |
24 | (ii) The amount of tuition attributable to each |
25 | available seat. The amount under this subparagraph shall |
26 | not exceed the amount calculated under section 2561. |
27 | (3) For a nonpublic school, the notice under paragraph |
28 | (1) must be submitted on a form developed by the department |
29 | immediately upon the effective date of this article and shall |
30 | specify the amount of tuition attributable to an available |
|
1 | seat. |
2 | (c) School district criteria.--For a school district which |
3 | intends to enroll students as part of the program, the following |
4 | criteria apply: |
5 | (1) Except as hereinafter provided, the school district |
6 | shall enroll students in participating schools on a lottery |
7 | basis from a pool of applicants who meet the application |
8 | deadline set by the department until the school fills its |
9 | available seats. The pool may not include a student who: |
10 | (i) has been expelled or is in the process of being |
11 | expelled under section 1317.2 or 1318 and applicable |
12 | regulations of the State Board of Education; or |
13 | (ii) has been recruited by the school district or |
14 | its representatives for athletic purposes. |
15 | (2) The enrollment of scholarship recipients may not |
16 | place the participating nonresident school district in |
17 | violation of a valid and binding desegregation order. |
18 | (3) Priority shall be given to: |
19 | (i) Existing scholarship recipients. |
20 | (ii) A scholarship applicant who is a sibling of a |
21 | student currently enrolled in the school district. |
22 | (d) Nonpublic school criteria.--For a nonpublic school which |
23 | intends to participate in the program, the following criteria |
24 | shall apply: |
25 | (1) The nonpublic school may not discriminate on a basis |
26 | which is illegal under Federal or State laws applicable to |
27 | nonpublic schools prior to the effective date of this |
28 | article. |
29 | (2) The nonpublic school shall comply with section 1521. |
30 | (3) The nonpublic school may not recruit a public school |
|
1 | student who receives an scholarship to enroll for athletic |
2 | purposes. |
3 | (e) Construction.--Nothing in this article shall be |
4 | construed to: |
5 | (1) Prohibit a participating nonpublic school from |
6 | limiting admission to a particular grade level, a single |
7 | gender or to areas of concentration of the participating |
8 | nonpublic school, including, but not limited to, mathematics, |
9 | science and the arts. |
10 | (2) Empower the Commonwealth or any of its agencies or |
11 | officers or political subdivisions to impose any additional |
12 | requirements on any participating nonpublic school which are |
13 | not otherwise authorized under the laws of this Commonwealth |
14 | or to require any participating nonpublic school to enroll |
15 | any opportunity scholarship recipient if the participating |
16 | nonpublic school does not offer appropriate programs or is |
17 | not structured or equipped with the necessary facilities to |
18 | meet the special needs of the opportunity scholarship |
19 | recipient or does not offer a particular program requested. |
20 | Section 1307-C. Procedures. |
21 | (a) Notification to school district and to opportunity |
22 | scholarship organizations.--By July 15, 2012, and by February 1 |
23 | of each year, the department shall notify every school district |
24 | identified as having at least one low-achieving school of its |
25 | designation and shall furnish the school district and all |
26 | qualified opportunity scholarship organizations with a list of |
27 | all low-achieving schools located within the school district. |
28 | (b) Notification to parents.-- |
29 | (1) Within 15 days of receipt of the notification under |
30 | subsection (a), the school district shall notify the parents |
|
1 | of each student currently attending a low-achieving school or |
2 | who would be a kindergarten student assigned to a low- |
3 | achieving school during the school year of the school's |
4 | designation and shall provide information regarding the |
5 | program established under this article, including: |
6 | (i) A description of the program. |
7 | (ii) Instructions for obtaining information about |
8 | applying for a scholarship under the program. |
9 | (iii) Notice of the parent's responsibilities with |
10 | regard to applying to a participating nonresident school |
11 | district or participating nonpublic school for |
12 | enrollment. Notification to the parents shall be in a |
13 | form provided by the department. |
14 | (2) The notification required under this subsection |
15 | shall also be posted on the school district's publicly |
16 | accessible Internet website. |
17 | (3) The notification required under this subsection |
18 | shall also be provided to students who reside within the |
19 | attendance area of a low-achieving school. |
20 | (c) Rules, policies and procedures.--Prior to enrollment, |
21 | the parent of a recipient shall be informed of any and all |
22 | rules, policies and procedures of the school within a |
23 | participating nonresident school district or participating |
24 | nonpublic school which the recipient will be attending, |
25 | including academic policies, disciplinary rules and |
26 | administrative procedures of the school. Enrollment of a |
27 | recipient in a school in a participating nonresident school |
28 | district or participating nonpublic school shall constitute |
29 | acceptance of any rules, policies and procedures of the school. |
30 | Section 1308-C. Transportation. |
|
1 | (a) Provision.--Transportation shall be provided under |
2 | section 1361. |
3 | (b) Reimbursement.--Reimbursement shall be as follows: |
4 | (1) Transportation of a scholarship recipient attending |
5 | a participating nonresident school district shall be subject |
6 | to reimbursement under section 2541. |
7 | (2) Transportation of a scholarship recipient attending |
8 | a participating nonpublic school shall be subject to |
9 | reimbursement under sections 2509.3 and 2541. |
10 | Section 1309-C. Subsidy continuation. |
11 | Notwithstanding any other provision of law to the contrary, |
12 | an educational opportunity scholarship recipient who was |
13 | enrolled in the recipient's resident school district or in a |
14 | charter school or cyber charter school when the recipient first |
15 | received an Educational Opportunity Scholarship under this |
16 | article shall continue to be counted in the average daily |
17 | membership of the resident school district for a period of one |
18 | year after enrolling in a participating nonresident public |
19 | school or a participating nonpublic school. During that same |
20 | period, a nonresident school district in which the recipient is |
21 | enrolled shall not include the recipient in the nonresident |
22 | school district's average daily membership. |
23 | Section 1310-C. Tuition grants by school districts. |
24 | (a) General rule.--The board of school directors of any |
25 | school district may use funds received from the Commonwealth for |
26 | educational purposes to establish a program of tuition grants to |
27 | provide for the education of school-age children who reside in |
28 | that district and who attend or will attend a public or |
29 | nonpublic school on a tuition-paying basis. |
30 | (b) Nonpublic school grant amount.--For students who attend |
|
1 | or will attend a nonpublic school, the grant amount for each |
2 | student shall not exceed the amount of the per pupil State |
3 | subsidy for basic education funding that would be paid to the |
4 | district if the student would be enrolled in the public schools |
5 | of that district. |
6 | (c) Average daily membership.--A student who receives a |
7 | tuition grant shall be included in the average daily membership |
8 | for purposes of determining the district's basic education |
9 | funding. A student who receives a grant to attend a public |
10 | school outside the district shall not be included in the average |
11 | daily membership of the receiving school district. |
12 | (d) Guidelines.--The board of school directors of a school |
13 | district shall prepare guidelines establishing an application |
14 | form and approval process, standards for verification as to the |
15 | accuracy of application information, confirmation of attendance |
16 | by grant recipients, restrictive endorsement of grant checks by |
17 | parents to the school chosen by the parents, pro rata refunds of |
18 | grants for students who withdraw during the school year, |
19 | repayment of refunded grants to the school district and |
20 | reasonable deadline dates for submission of grant applications. |
21 | The board of school directors of a school shall announce the |
22 | award of grants no later than August 1 of the school year in |
23 | which the grants will be utilized. Upon receipt of written |
24 | confirmation of enrollment from the recipient's school of |
25 | choice, grants shall be paid to the parents of an eligible grant |
26 | recipient by a check that may only be endorsed to the selected |
27 | school. In the event a grant recipient is no longer enrolled |
28 | prior to the completion of the school term, the school shall |
29 | send written notice thereof to the school district. |
30 | (f) Nontaxable.--Grants awarded to eligible recipients under |
|
1 | this section shall not be considered taxable income for purposes |
2 | of any local taxing ordinance or for purposes of Article III of |
3 | the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform |
4 | Code of 1971, nor shall such grants constitute financial |
5 | assistance or appropriations to the school attended by the grant |
6 | recipient. |
7 | (g) Construction.--Nothing in this section shall be |
8 | construed to empower the Commonwealth or any school district or |
9 | any of their agencies or officers to prescribe the course |
10 | content or admissions criteria for any religiously affiliated |
11 | school, to compel any private school to accept or enroll the |
12 | children of eligible grant recipients, to impose any additional |
13 | requirements on any private school that are not otherwise |
14 | authorized under this act or to require any school to accept or |
15 | retain the children of any eligible grant recipient if the |
16 | school does not offer programs or is not structured or equipped |
17 | with the necessary facilities to meet the special needs of the |
18 | student or does not offer a particular program requested. |
19 | (h) Definition.--For purposes of this section, the term |
20 | "school" shall mean a public or nonpublic kindergarten, |
21 | elementary school or secondary school at which the compulsory |
22 | attendance requirements of the Commonwealth may be met and which |
23 | meets the applicable requirements of Title VI of the Civil |
24 | Rights Act of 1964 (Public Law 88-352, 78 Stat. 241). |
25 | Section 1311-C. Exclusive jurisdiction. |
26 | The Pennsylvania Supreme Court shall have exclusive |
27 | jurisdiction to hear any challenge or to render a declaratory |
28 | judgment concerning the constitutionality of this article. The |
29 | Supreme Court may take such action as it deems appropriate, |
30 | consistent with the Supreme Court's retaining jurisdiction over |
|
1 | such a matter, to find facts or to expedite a final judgment in |
2 | connection with such a challenge or request for declaratory |
3 | relief. |
4 | Section 2. Repeals are as follows: |
5 | (1) The General Assembly declares that the repeal under |
6 | paragraph (2) is necessary to effectuate the addition of |
7 | Article XIII-B of the act. |
8 | (2) Article XVII-F and section 2902-E(b) of the act of |
9 | March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of |
10 | 1971, are repealed. |
11 | Section 3. The provisions of Articles XIII-B and XIII-C of |
12 | the act are severable. If any provision of those articles or |
13 | their application to any person or circumstance is held invalid, |
14 | the invalidity shall not affect other provisions or applications |
15 | of those articles which can be given effect without the invalid |
16 | provision or application. |
17 | Section 4. This act shall take effect as follows: |
18 | (1) The following provisions shall take effect July 1, |
19 | 2012, or immediately, whichever is later: |
20 | (i) The addition of Article XIII-B of the act. |
21 | (ii) Section 2 of this act. |
22 | (2) The remainder of this act shall take effect |
23 | immediately. |
|