THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY PICCOLA, WILLIAMS, SCARNATI, PILEGGI, FOLMER, BROWNE, SMUCKER, ALLOWAY, ERICKSON, RAFFERTY, EICHELBERGER, PIPPY, D. WHITE, MENSCH, BRUBAKER, WASHINGTON AND STACK, JANUARY 26, 2011

SENATOR PICCOLA, EDUCATION, RE-REPORTED AS AMENDED, OCTOBER 25, 2011   

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," in opportunities for educational

<--

excellence, further providing for definitions and for

concurrent enrollment agreements; in charter schools, further

providing for definitions; establishing the Charter School

Funding Advisory Committee; further providing for powers of

charter schools, for charter school requirements, for powers

of board of trustees, for establishment of charter school,

for contents of application, for terms and form of charter,

for State Charter School Appeal Board, for facilities, for

enrollment, for funding for charter schools, for annual

reports and assessments, for causes for nonrenewal or

termination and for provisions applicable to charter schools;

providing for effect on existing charter schools; further

providing for powers and duties of department, for assessment

and evaluation, for school district and intermediate unit

responsibilities and for establishment of cyber charter

school; repealing provisions relating to enrollment and

notification; further providing for applicability of other

provisions of this act and of other acts and regulations; 

providing for opportunity scholarships; establishing the

<--

Excess Scholarship Fund; providing and for educational

<--

improvement tax credit; and repealing provisions of the Tax

Reform Code of 1971 relating to educational improvement tax

credit.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

<--

as the Public School Code of 1949, is amended by adding an

article to read:

ARTICLE XXV-B

OPPORTUNITY SCHOLARSHIPS AND

EDUCATIONAL IMPROVEMENT TAX CREDIT

(a)  Preliminary Provisions

Section 2501-B.  Short title.

This article shall be known and may be cited as the

Opportunity Scholarship and Educational Improvement Tax Credit

Act.

(b)  Opportunity Scholarships

Section 2501.1-B.  Legislative findings.

The General Assembly finds that:

(1)  Pursuant to section 14 of Article III of the

Constitution of Pennsylvania, the General Assembly has the

responsibility to provide for the maintenance and support of

a thorough and efficient system of public education to serve

the needs of this Commonwealth.

(2)  Parents are best suited to choose the most

appropriate means of education for their school-age children.

(3)  Providing diverse educational opportunities for the

children of this Commonwealth is a civic and civil rights

imperative and a matter of serious concern.

(4)  The importance of providing educational choices that

will meet the needs of parents, and the need to maintain and

support an effective system of education, make it imperative

to provide for the increased availability of diverse

opportunities, including both public and nonpublic programs

of education, to benefit all citizens of this Commonwealth.

(5)  Public schools are the foundation of the system of

education in this Commonwealth. Further, Pennsylvania's

longstanding tradition of local control of public education

allows communities to adapt their public school programs to

meet local needs. For these reasons, a robust program of

interdistrict school choice is a critical means of providing

families with increased educational options within the

traditional public school system.

(6)  The accessibility to families of nonpublic

educational alternatives decreases the burden on the

Commonwealth and local school districts and increases the

range of educational choices available to Pennsylvania

families, thus providing a benefit to all citizens of this

Commonwealth.

(7)  It is the long-term goal of the General Assembly to

offer assistance to all families in this Commonwealth, so as

to provide every child in this Commonwealth with diverse

educational opportunities and options.

(8)  As an initial step toward the long-term goal of

offering assistance to all Pennsylvania families, this

subarticle provides assistance to disadvantaged school-age

children in this Commonwealth who would otherwise attend

persistently lowest achieving schools.

(9)  Many disadvantaged school-age children in this

Commonwealth enjoy comparatively fewer educational

opportunities or options than school-age children who possess

greater economic means.

(10)  The programs of educational choice provided in this

subarticle are elements of an overall program of providing

funds to increase the availability of educational

opportunities for school-age children in this Commonwealth.

(11)  A comparatively far greater proportion of public

funds are and, upon implementation of an educational choice

program, will continue to be devoted to the benefit of

children enrolled in the public schools of this Commonwealth.

Therefore, an opportunity scholarship program that offers

assistance to parents who choose to enroll their children in

participating nonpublic schools should be viewed as an

integral part of the Commonwealth's overall program of

educational funding and not as an isolated individual

program.

(12)  A program of financial assistance to enhance

educational choice in this Commonwealth, as one element of

the Commonwealth's plan for the funding of diverse

educational opportunities for the citizens of this

Commonwealth, will better prepare Commonwealth citizens to

compete for employment opportunities, will foster development

of a more capable and better-educated work force and will

better enable the Commonwealth to fulfill its obligation of

providing children with the opportunity to receive a quality

education.

Section 2502-B.  Definitions.

The following words and phrases when used in this subarticle

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Assessment."  The Pennsylvania System of School Assessment

test, the Keystone Exam, an equivalent local assessment or

another test established by the State Board of Education to meet

the requirements of section 2603-B(d)(10)(i) and required under

the No Child Left Behind Act of 2001 (Public Law 107-110, 115

Stat. 1425) or its successor Federal statute or required to

achieve other standards established by the department for the

public school or school district under 22 Pa. Code § 403.3

(relating to single accountability system).

"Average daily membership."  A school district's average

daily membership as defined in section 2501(3).

"Board."  The Education Opportunity Board established under

this subarticle.

"Department."  The Department of Education of the

Commonwealth.

"Excess Scholarship Fund" or "Fund."  The Excess Scholarship

Fund established in this subarticle.

"Federal poverty line."  The official Federal poverty line as

defined in section 673(2) of Subtitle B of the Community

Services Block Grant Act (Public Law 97-35, 95 Stat. 511), as

adjusted from time to time.

"Fund."  The Excess Scholarship Fund established in this

subarticle.

"Household income."  Income as used for the purposes of

determining eligibility for a free lunch under the Richard B.

Russell National School Lunch Act (60 Stat. 230, 1751 et seq.).

"Kindergarten."  A one-year formal kindergarten program that

occurs during the school year immediately prior to first grade.

"Local scholarship."  A scholarship that is both:

(1)  Funded by the local revenues of a low-income child's

resident school district in an amount equal to at least 35%

of the school district's share of its total revenue per

average daily membership.

(2)  Applied toward the low-income child's tuition to

attend a nonresident public school.

"Low-income child."  A school-age child with a household

income that does not exceed 1.3 times the Federal poverty line

for the school year preceding the school year for which an

opportunity scholarship is to be distributed.

"Middle-income child."  A school-age child with a household

income that does not exceed three times the Federal poverty line

for the school year immediately preceding the school year for

which an opportunity scholarship is to be distributed.

"Middle-income scholarship."  A middle-income scholarship

awarded to a middle-income child under this subarticle to pay

tuition for the child to attend a nonresident public school or a

participating nonpublic school.

"Middle-income scholarship recipient."  A middle-income child

who is awarded a middle-income scholarship under this

subarticle.

"Nonpublic school."  A school, other than a public school,

located within this Commonwealth where a Commonwealth resident

may legally fulfill the compulsory school attendance

requirements of this act and that meets the applicable

requirements of Title VI of the Civil Rights Act of 1964 (Public

law 88-352, 78 Stat. 241). The term also includes a full-time or

part-time kindergarten program operated by a nonpublic school.

"Nonresident public school."  A public school outside a

child's resident school district.

"Nonresident school district."  A school district other than

the school district in which a school-age child resides.

"Nonresident student."  A school-age child attending a public

school outside the child's resident school district.

"Opportunity scholarship."  An opportunity scholarship

awarded to a low-income child under this subarticle to pay

tuition for the child to attend a nonresident public school or a

participating nonpublic school.

"Opportunity scholarship program" or "program."  The

opportunity scholarship program established under this

subarticle.

"Opportunity scholarship recipient."  A low-income child who

is awarded an opportunity scholarship under this subarticle.

"Parent."  A Commonwealth resident who is a parent or

guardian of a school-age child.

"Participating nonpublic school."  A nonpublic school located

in this Commonwealth and offering a program of instruction for

kindergarten through 12th grade, or a combination of grades,

that certifies to the board under section 2505-B that it meets

the following criteria:

(1)  the nonpublic school is a nonprofit entity that is

exempt from Federal taxation under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

1 et seq.);

(2)  the nonpublic school does not discriminate in its

admission policies or practices for opportunity scholarship

applicants on the basis of measures of achievement or

aptitude or status as a handicapped person, provided,

however, that an applicant may be required to meet

established eligibility criteria for participation in magnet

schools or in schools with specialized academic missions; and

(3)  the nonpublic school is in full compliance with all

Federal and State laws applicable to nonpublic schools on the

date prior to the effective date of this section.

"Persistently lowest achieving school."  A public elementary

or secondary school within this Commonwealth that is among the

lowest performing 5% of schools. To determine the lowest

performing 5% of schools, the department shall:

(1)  consider all public schools in this Commonwealth,

with the exception of charter schools, cyber charter schools,

area vocational-technical schools, schools that do not draw

their student body from a particular attendance boundary and

schools with specialized academic programs with specific

admissions criteria;

(2)  exclude schools that have made adequate yearly

progress or were determined to be making progress for at

least one of the two most recent school years or that have

not been measured for adequate yearly progress in one of the

two most recent school years;

(3)  rank all remaining schools based upon their

performance on the most recent assessment for which data is

posted on the department's publicly accessible Internet

website; and

(4)  include the lowest-performing 144 schools ranked

under paragraph (3) on a list of persistently lowest-

achieving schools.

"Resident school district."  The school district in which a

school-age child resides.

"School-age child."  A child enrolling in kindergarten or in

grades 1 through 12.

"Student with a disability."  A school-age child who has been

identified, in accordance with 22 Pa. Code Ch. 14 (relating to

special education services and programs), as a "child with a

disability," as defined in 34 CFR § 300.8 (relating to a child

with a disability).

"Total revenue per average daily membership."  A school

district's total revenue per average daily membership minus the

amount of reimbursement to the school district for pupil

transportation under  sections 2509.3 and 2541.

Section 2503-B.  Opportunity scholarship program.

(a)  Establishment.--Beginning with the 2011-2012 school

year, the opportunity scholarship program shall be established

to provide scholarships to help low-income children pay tuition

to attend a nonresident public school or a participating

nonpublic school.

(b)  Phase-in.--The opportunity scholarship program shall be

phased in as follows:

(1)  During the 2011-2012 school year, the opportunity

scholarship program shall be available to low-income children

who satisfy both of the following:

(i)   Either attended a persistently lowest achieving

school during the 2010-2011 school year or will be a

kindergarten student during the 2011-2012 school year.

(ii)  Will reside within the attendance boundary of a

persistently lowest achieving school as of the first day

of classes of the 2011-2012 school year.

(2)  During the 2012-2013 school year, the opportunity

scholarship program shall be available to low-income children

who qualified for the program for the 2011-2012 school year

under paragraph (1) and to low-income children who will 

reside within the attendance boundary of a persistently

lowest achieving school as of the first day of classes of the

2012-2013 school year. 

(3)  (i)  During the 2013-2014 school year and each

school year thereafter, the opportunity scholarship

program shall be available to all low-income children

residing in this Commonwealth, provided that the

aggregate amount of all opportunity scholarships awarded

for the 2013-2014 school year and for each school year

thereafter to low-income children who do not reside

within the attendance boundary of a persistently lowest

achieving school as of the first day of classes of the

school year shall not exceed $250,000,000.

(ii)  Nothing in this paragraph shall be construed to

limit the amount of opportunity scholarships awarded to

low-income children who were eligible for opportunity

scholarships in the 2011-2012 and 2012-2013 school years

or who reside within the attendance boundary of a

persistently lowest achieving school as of the first day

of classes of a school year.

(c)  List of persistently lowest achieving schools to be

published.--By April 1, 2011, and by February 1 of each year

thereafter, the department shall publish on the department's

publicly accessible Internet website and in the Pennsylvania

Bulletin a list of persistently lowest achieving schools that

will be in effect for purposes of this subarticle for the

following school year. The department shall publish the list

based upon the most recent school year for which data is

available.

(d)  Notice.--

(1)  For each school year, by a date established by the

board, each school district in this Commonwealth shall post

on its publicly accessible Internet website notice of the

following:

(i)  A description of the opportunity scholarship

program.

(ii)  Instructions for applying for an opportunity

scholarship.

(iii)  Instructions for applying for a local

scholarship where the school district has elected to

provide a local scholarship under section 2504-B(b).

(iv)  A statement as to whether any schools in the

school district have been designated by the department as

persistently lowest achieving schools.

(v)  Notice that a parent must contact directly the

nonresident public school or participating nonpublic

school in which the parent's child seeks to enroll for

application instructions.

(2)  The notice shall be in a form provided by the board.

Section 2504-B.  Opportunity scholarship to attend a nonresident

public school.

(a)  Eligibility.--A low-income child who is eligible to

participate in the opportunity scholarship program may receive

an opportunity scholarship to pay tuition to attend a

nonresident public school that accepts a child's enrollment

application under subsection (d).

(b)  Local scholarship.--A school district may elect to

provide a local scholarship to low-income children residing

within the school district to pay tuition to attend a

nonresident public school that accepts a child's enrollment

application under subsection (d). A school district that elects

to provide a local scholarship shall:

(1)  By a date established by the board, notify all

residents of the school district of the availability and

amount of the local scholarship for the following school year

and the process by which a low-income child may apply to the

board to receive the opportunity and local scholarships. The

school district shall post the notice on the school

district's publicly accessible Internet website. The notice

may be incorporated into the notice the school district is

required to provide under section 2503-B(d).

(2)  By a date established by the board, notify the board

of the availability and amount of the local scholarship for

the following school year.

(3)  When directed to do so by the board, pay to the

board the local scholarship for each low-income child

residing in the district who the board determines to be

eligible for the local scholarship and who the board confirms

has enrolled in a nonresident public school.

(4)  Comply with all guidelines developed by the board

under section 2509-B.

(c)  Application for opportunity and local scholarships.--

(1)  By a date established by the board and pursuant to

guidelines developed by the board under section 2509-B, the

parent of a low-income child may apply to the board:

(i)  For an opportunity scholarship for the following

school year.

(ii)  For a local scholarship for the following

school year, where the low-income child's resident school

district has elected to provide a local scholarship under

subsection (b).

(2)  By a date established by the board, the board shall

notify parents whether the scholarships for which the student

applied will be awarded for the following school year.

(d)  Application for enrollment in a nonresident public

school.--

(1)  By a date established by the board, the parent of a

low-income child who has been awarded a scholarship under

subsection (c) may apply to one or more nonresident public

schools for enrollment of the child for the following school

year. The application shall be on a form provided by the

nonresident school district.

(2)  (i)  By a date established by the board, the 

nonresident school district shall provide written notice

to the parent and the board as to whether the child will

be offered enrollment in the requested nonresident public

school for the following school year.

(ii)  By a date established by the board, the parent

must provide written notice to the board, the resident

school district and the nonresident school district

whether the offer of enrollment will be accepted.

(iii)  By a date established by the board, the board

shall provide the resident school district and the

nonresident school district with written confirmation of

the opportunity scholarship recipient's enrollment in the

nonresident school district.

 (iv)  If the child is not enrolled in a nonresident

public school, the child's resident school district shall

determine the public school within the resident school

district to which the child will be assigned.

(3)  Each school district shall develop guidelines

setting forth the terms and conditions under which it will

enroll nonresident students receiving opportunity and local

scholarships and shall develop an enrollment application form

and process. If a school district determines to enroll

nonresident students receiving opportunity and local

scholarships, the school district must enroll such

nonresident students on a random basis from a pool of

applicants who meet the application deadline established by

the board, provided that:

(i)  the nonresident student's enrollment in the

nonresident school district would not place either the

nonresident school district or the resident school

district in violation of a valid and binding

desegregation order;

(ii)  the nonresident student has not been expelled

nor is the nonresident student in the process of being

expelled under section 1317.2 or 1318 and applicable

regulations of the State Board of Education;

(iii)  the nonresident student has not been recruited

by the school district or its representatives for

athletic purposes; or

(iv)  the nonresident student meets the established

eligibility criteria for participation in a magnet school

or in a public school with a specialized academic

mission.

(4)  A nonresident school district may give priority in

enrollment to a nonresident student who has been awarded a

local scholarship.

(e)  Commonwealth payments.--The Commonwealth shall make

payment pursuant to the schedule contained in section 2517 to

each school district or area vocational-technical school that

accepts a nonresident student under the provisions of this

subarticle subject to the following terms and conditions:

(1)  The Commonwealth shall pay to each school district

or area vocational-technical school that accepts a

nonresident student, on a tuition basis, the amount

determined under section 2506-B.

(2)  (i)  For a nonresident student who is an opportunity

scholarship recipient and defined as a "student with a

disability," services provided to the opportunity

scholarship recipient shall be charged against the

Commonwealth's special education subsidy to the resident

school district, provided that the resident school

district shall not be charged more for services provided

to the opportunity scholarship recipient by the

nonresident school district than the difference between

the current year cost of the services had the opportunity

scholarship recipient remained in the resident school

district and the sum of the opportunity scholarship, the

local scholarship and the per pupil special education

funding following the opportunity scholarship recipient.

(ii)  The resident school district shall provide the

board with documentation of the prior year's cost of

services provided to the opportunity scholarship

recipient and an estimate of the cost of providing those

services in the current year had the opportunity

scholarship recipient remained in the resident school

district. Any cost not covered by this funding shall be

borne by the nonresident school district enrolling the

opportunity scholarship recipient.

(3)  An opportunity scholarship recipient shall be

included in the average daily membership of the opportunity

scholarship recipient's resident school district.

(4)  In the event an opportunity scholarship recipient

withdraws from a nonresident school district prior to the

completion of the school year, the following shall apply:

(i)  The nonresident school district shall, within 15

days of the opportunity scholarship recipient's

withdrawal from the nonresident school district, provide

the board with written notice of the opportunity

scholarship recipient's withdrawal from the nonresident

school district.

(ii)  The resident school district, nonresident

school district or participating nonpublic school in

which the opportunity scholarship recipient subsequently

enrolls shall notify the board within five days of the

opportunity scholarship recipient's enrollment.

(iii)  Within 30 days after receiving the notice

required under subparagraph (ii), the board shall do the

following:

(A)  If the opportunity scholarship recipient

enrolls in the resident school district or a

nonresident school district, pay the resident school

district or nonresident school district the full

amount of the opportunity scholarship payment reduced

on a pro rata basis for the portion of the school

year in which the opportunity scholarship recipient

was enrolled in another school.

(B)  If the opportunity scholarship recipient

enrolls in a participating nonpublic school, pay the

opportunity scholarship recipient's parent the full

amount of the opportunity scholarship payment reduced

on a pro rata basis for the portion of the school

year in which the opportunity scholarship recipient

was enrolled in another school. Such payment shall be

made to the parents of the opportunity scholarship

recipient pursuant to the provisions of section

2505-B(b).

(f)  Limitation.--The tuition charged by a nonresident school

district to an opportunity scholarship recipient under this

subarticle shall not exceed the sum of the opportunity

scholarship and the local scholarship, if applicable, awarded to

the opportunity scholarship recipient.

(g)  Transportation.--

(1)  Notwithstanding any provisions of section 1361 to

the contrary, a school district that provides its resident

public school pupils with transportation to and from the

resident public schools or to and from any points within or

without this Commonwealth in order to provide field trips

under section 1361 shall provide a student who resides within

the school district but regularly attends a nonresident

public school, including a charter school, that is located

not more than ten miles from the student's resident school

district by the nearest public highway, with transportation

to and from such nonresident public school or to and from any

points within or without this Commonwealth in order to

provide field trips under section 1361.

(2)  Transportation of a student under this subsection

shall be subject to reimbursement under section 2541.

Section 2505-B.  Opportunity  scholarship to attend a

participating nonpublic school.

(a)  Eligibility.--The parent of a low-income child who is

eligible to receive an opportunity scholarship under section

2503-B and desires to apply for an opportunity scholarship to

attend a participating nonpublic school must:

(1)  By a date established by the board, apply to the

board for an opportunity scholarship for the following school

year pursuant to guidelines developed by the board under

section 2509-B. By a date established by the board, the board

shall notify parents whether the opportunity scholarship will

be awarded for the following school year.

(2)  Apply for enrollment directly to the participating

nonpublic school pursuant to application procedures developed

by the participating nonpublic school. By a date established

by the board, a participating nonpublic school shall provide

written confirmation to the board of each opportunity

scholarship recipient whose application for enrollment has

been accepted for the following school year. By a date

established by the board, the board shall provide the

opportunity scholarship recipient's resident school district

with written confirmation of the opportunity scholarship

recipient's enrollment in the participating nonpublic school.

(b)  Payment of opportunity scholarship awards.--The

Commonwealth shall provide payment of an opportunity scholarship

to the parents of each opportunity scholarship recipient who is

enrolled in a participating nonpublic school under the

provisions of this subarticle subject to the following terms and

conditions:

(1)  Opportunity scholarships shall be awarded only for

the payment of costs of tuition at a participating nonpublic

school within this Commonwealth. Opportunity scholarships

shall not be awarded for enrollment in a home education

program provided under section 1327.1.

(2)  Opportunity scholarships shall be paid to the

parents of an opportunity scholarship recipient upon the

board's receipt of written confirmation of enrollment from

the participating nonpublic school selected by the recipient.

The opportunity scholarship award shall be paid by check

which may be endorsed by the parents only for payment of

tuition at the participating nonpublic school at which the

opportunity scholarship recipient's enrollment has been

confirmed.

(3)  In the event an opportunity scholarship recipient 

withdraws from a participating nonpublic school prior to the

completion of the school year, the following shall apply:

(i)  The participating nonpublic school shall, within

15 days of the opportunity scholarship recipient's

withdrawal from the participating nonpublic school:

(A)  Provide the board with written notice of the

opportunity scholarship recipient's withdrawal from

the participating nonpublic school.

(B)  Return to the board the full amount of the

opportunity scholarship payment reduced on a pro rata

basis by the tuition for the portion of the school

year in which the opportunity scholarship recipient

was enrolled.

(ii)  If the participating nonpublic school fails to

submit to the board the amount required to be paid under

subparagraph (i), the board shall impose interest on the

unpaid amount, calculated from the due date at the rate

determined by the Secretary of Revenue for interest

payments on overdue taxes or the refund of taxes as

provided in sections 806 and 806.1 of the act of April 9,

1929 (P.L.343, No.176), known as The Fiscal Code.

(iii)  If the opportunity scholarship recipient

enrolls in another participating nonpublic school within

the school year for which the opportunity scholarship was

awarded, the board shall pay the parent of the

opportunity scholarship recipient the opportunity

scholarship award prorated for the remaining portion of

the school year.

(4)  In the event an opportunity scholarship recipient is

expelled from a participating nonpublic school prior to the

completion of the school year and the opportunity scholarship

recipient subsequently enrolls in his resident school

district, the board shall pay the resident school district

the opportunity scholarship award prorated for the remaining

portion of the school year. The resident school district

shall apply this amount toward providing educational services

for the opportunity scholarship recipient, which may include,

but shall not be limited to, an alternative assignment or

alternative education services.

(b.1)  Penalties.--

(1)  Each opportunity scholarship check issued under this

section shall contain the following statement:

"Failure to endorse this check as directed by the

board may subject the endorser to civil penalties and

criminal prosecution."

(2)  A parent's endorsement or use of an opportunity

scholarship check in a manner other than as directed by the

department may subject the parent to the following penalties:

(i)  A civil penalty equal to 300% of the full amount

of the annual opportunity scholarship award made to the

parent.

(ii)  Disqualification from future eligibility for an

opportunity scholarship.

(iii)  Criminal prosecution.

(c)  Enrollment requirements.--The following shall apply to a

participating nonpublic school which admits an opportunity

scholarship recipient:

(1)  The participating nonpublic school shall not

discriminate on any basis that is illegal under Federal or

State  laws applicable to nonpublic schools on the date prior

to the effective date of this section.

(2)  The participating nonpublic school shall comply with

section 1521, which prohibits discrimination in enrollment on

the basis of race or color.

(3)  The participating nonpublic school may not recruit

any public school student to enroll for athletic purposes.

(4)  For each school year, by a date established by the

board, a nonpublic school that desires to enroll opportunity

scholarship recipients under this subarticle shall certify to

the board that it satisfies the definition of "participating

nonpublic school" in section 2502-B. Such certification shall

be on a form developed by the board.

(d)  Policies.--Upon request, a participating nonpublic

school shall make available for review by the parents of any

opportunity scholarship recipient seeking enrollment, its

written school policies and procedures related to tuition

charges, admissions, academic offerings and requirements,

discipline, religious instruction, parent involvement,

standardized testing, the release of results of standardized

tests administered by the participating nonpublic school and

extracurricular activities and suspension and expulsion of

students, including educational accommodations and counseling

offered to students and parents.

(e)  Assessments.--

(1)  (i)  Each participating nonpublic school shall

administer annually an assessment or a nationally normed

standardized achievement test in reading/language arts

and mathematics to each opportunity scholarship recipient

attending the participating nonpublic school in grades 3,

5, 8 and 11.

(ii)  To comply with this paragraph, a participating

nonpublic school may either administer an assessment or

administer a nationally normed standardized achievement

test chosen by the participating nonpublic school from a

list established under paragraph (2).

(2)  The board shall establish a list of at least eight

nationally normed standardized achievement tests from which

the participating nonpublic school shall select a test to be

administered if the participating nonpublic school does not

choose to administer an assessment.

(3)  Each participating nonpublic school shall:

(i)  Release each opportunity scholarship recipient's

individual results on the assessment or nationally normed

standardized achievement test administered to opportunity

scholarship recipients under paragraph (1) to the parent

of the opportunity scholarship recipient.

(ii)  If the participating nonpublic school has a

publicly accessible Internet website, post on the website

the participating nonpublic school's aggregate results on

the assessment or nationally normed standardized

achievement test administered to opportunity scholarship

recipients under paragraph (1), provided that the

participating nonpublic school shall not post results

that reveal the identity of any individual student.

(4)  The participating nonpublic school shall bear the

cost of the testing administered under this subsection and

shall not impose an assessment or testing fee on an

opportunity scholarship recipient.

(f)  Construction.--Nothing in this subarticle shall be

construed to:

(1)  Prohibit a participating nonpublic school from

limiting admission to a particular grade level, a single

gender or to areas of concentration of the participating

nonpublic school, including, but not limited to, mathematics,

science and the arts.

(2)  Empower the Commonwealth or any of its agencies or

officers or political subdivisions to impose any additional

requirements on any participating nonpublic school which are

not otherwise authorized under the laws of this Commonwealth

or to require any participating nonpublic school to enroll

any opportunity scholarship recipient if the participating

nonpublic school does not offer appropriate programs or is

not structured or equipped with the necessary facilities to

meet the special needs of the opportunity scholarship

recipient or does not offer a particular program requested.

Section 2506-B.  Amount of opportunity scholarship.

(a)  Calculation.--

(1)  The amount of the opportunity scholarship shall

equal 100% of the Commonwealth's share of the resident school

district's total revenue per average daily membership of the

prior school year.

(2)  In no case shall the combined amount of the 

opportunity scholarship award and any additional financial

assistance provided by a participating nonpublic school

exceed the tuition rate for the participating nonpublic

school.

(b)  Limitation.--No nonresident public school or

participating nonpublic school may charge an opportunity

scholarship recipient a higher tuition rate than the rate the

nonresident public school or participating nonpublic school

would have charged to a student who had not received an

opportunity scholarship.

(c)  Excess Scholarship Fund.--

(1)  The Excess Scholarship Fund is established in the

State Treasury and shall be funded by the amount of the

opportunity scholarship awarded to an opportunity scholarship

recipient under this subarticle in excess of the amount of

tuition charged to the opportunity scholarship recipient.

(2)  The fund shall be administered by the board and 

applied as follows:

(i)  During the 2012-2013 school year and each school

year thereafter, money in the fund shall be applied

toward the costs of the opportunity scholarship program,

subject to subparagraph (ii).

(ii)  During the 2014-2015 school year and each

school year thereafter, one-half of the money in the fund

shall be applied toward costs of the following programs:

(A)  One-half of the money under this

subparagraph shall be applied to the public school

demonstration grant program. Any unused grant funding

shall be added to the total amount of funds available

for the middle-income scholarship program.

(B)  One-half of the money under this

subparagraph shall be applied toward the costs of the

middle-income scholarship program.

(d)  Annual appropriations.--

(1)  Opportunity scholarships authorized under this

subarticle shall be made from annual appropriations made by

the General Assembly to the department and moneys available

in the fund for that purpose.

(2)  Subject to section 2503-B(b)(3), in the event that

insufficient moneys are available in any fiscal year to

provide opportunity scholarships to all eligible opportunity

scholarship recipients in the amount authorized, the board

shall make pro rata reductions in the amount of the

opportunity scholarship provided to each opportunity

scholarship recipient.

(3)  The total amount of opportunity scholarships

provided in any fiscal year shall be limited to the amount of

money appropriated for that fiscal year and moneys in the

fund.

(e)  Nontaxable.--Opportunity scholarship funds received by a

parent pursuant to this subarticle shall not be considered

taxable income for purposes of any local taxing ordinance or for

purposes of Article III of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, nor shall such

opportunity scholarships constitute financial assistance or

appropriations to the participating nonpublic school attended by

the opportunity scholarship recipient.

(f)  Continued eligibility.--

(1)  Subject to subsection (d), a child enrolled in a

nonresident public school or a participating nonpublic school

who received an opportunity scholarship under this subarticle

in the prior school year shall receive an opportunity

scholarship in each school year of enrollment under the

opportunity scholarship program, provided that the child

remains eligible.

(2)  (i)  If a child who received an opportunity

scholarship under this subarticle in the prior school

year ceases to qualify as a low-income child, the child

shall continue to receive a partial scholarship until

completing the eighth grade, provided that the child

continues to meet all other eligibility requirements.

(ii)  In calculating the amount of the partial

scholarship, the board shall make a pro rata reduction in

the child's opportunity scholarship award based upon the

child's household income.

(g)  Penalties.--Any person who fraudulently submits an

opportunity or local scholarship application or who knowingly

falsifies material information on an opportunity or local

scholarship application shall be subject to the following

penalties:

(1)  Imposition by the board of a civil penalty of up to

$1,000.

(2)  Prosecution for violation of 18 Pa.C.S. § 4904

(relating to unsworn falsification to authorities).

(3)  Disqualification from future participation in the

opportunity scholarship program.

(h)  Residence in more than one school district within a

school year.--Where an opportunity scholarship recipient resides

within more than one school district during a school year, the

amount of the opportunity scholarship shall be charged against

each resident school district on a pro rata basis.

Section 2507-B.  Guidelines.

(a)  Requirements.--Within 30 days of the effective date of

this section, the board shall establish guidelines that provide

the following:

(1)  Forms to apply for opportunity and local

scholarships, including application and approval processes

and deadlines for application and notification.

(2)  Procedures to verify the accuracy of the information

provided in an opportunity or local scholarship application.

(3)  Procedures for school district, school and parent

notification of opportunity or local scholarship awards.

(4)  Procedures for administration of the opportunity and

local scholarship programs.

(5)  Confirmation of school enrollment by opportunity

scholarship recipients.

(6)  Procedures for making payment of opportunity

scholarship awards, including policies and procedures to

minimize the likelihood of fraud or misuse of opportunity

scholarship funds. For an opportunity scholarship recipient

enrolled in a participating nonpublic school, the procedures

shall include restrictive endorsement of opportunity

scholarship award checks to the participating nonpublic

school in which the opportunity scholarship recipient is

enrolled.

(7)  Procedures for participating nonpublic schools to

pay pro rata refunds of opportunity scholarships to the board

when an opportunity scholarship recipient withdraws from a

participating nonpublic school during the school year for

which the opportunity scholarship was paid.

(8)  Development and distribution of public information

concerning the opportunity and local scholarship and

interdistrict enrollment programs.

(9)  Procedures to determine the eligibility of homeless

students for opportunity scholarships under this subarticle,

consistent with the Stewart B. McKinney Homeless Assistance

Act (Public Law 100-77, 101 Stat. 482) or a successor Federal

statute.

(10)  Deadline dates for actions required to be taken by

the board, the department, school districts, participating

nonpublic schools and parents under this subarticle.

(11)  Such other procedures as are necessary to fully

implement the opportunity and local scholarship and

interdistrict enrollment programs.

(12)  A list of at least eight nationally normed

standardized achievement tests from which a participating

nonpublic school may select a test to be administered

pursuant to section 2505-B(e). The initial list developed by

the board shall, at a minimum, include the following:

California Achievement Test, Comprehensive Testing Program

(CTPIV), Iowa Test of Basic Skills, Metropolitan Achievement

Test, Peabody Achievement Individual Test - Revised Version,

Stanford Achievement Test, Terra Nova and Woodcock Johnson

Revised Tests of Achievement III.

(b)  Publication.--The guidelines shall be published as a

statement of policy in the Pennsylvania Bulletin. The board 

shall post the guidelines on the department's publicly

accessible Internet website.

(c)  State Board of Education.--Notwithstanding any other

provision of law to the contrary, the programs, procedures and

guidelines authorized by this subarticle shall not be subject to

review, regulation or approval by the State Board of Education.

(d)  Exemption of guidelines from certain laws.--The initial

guidelines established by the board, and any amendments thereto,

shall be exempt from the requirements of the following:

(1)  The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

(2)  The act of July 31, 1968 (P.L.769, No.240), referred

to as the Commonwealth Documents Law.

(3)  The act of October 15, 1980 (P.L.950, No.164), known

as the Commonwealth Attorneys Act.

Section 2508-B.  Reduction in amount of school aid.

Notwithstanding any other provision of law to the contrary,

beginning in the second consecutive school year of enrollment in