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        PRIOR PRINTER'S NO. 659                       PRINTER'S NO. 2314

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 586 Session of 2005


        INTRODUCED BY O'NEILL, ARMSTRONG, BOYD, CALTAGIRONE, CAWLEY,
           CORNELL, CREIGHTON, GEIST, GINGRICH, GRUCELA, JAMES, PALLONE,
           PHILLIPS, ROHRER, RUBLEY, SCAVELLO, E. Z. TAYLOR, WALKO,
           WANSACZ, WATSON, WILT, YOUNGBLOOD, BENNINGHOFF AND DENLINGER,
           FEBRUARY 16, 2005

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 22, 2005

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," further providing for definitions,
     6     FOR DISTRESS IN SCHOOL DISTRICTS OF THE FIRST CLASS AND FOR    <--
     7     THE SCHOLARSHIP ORGANIZATION EDUCATIONAL IMPROVEMENT TAX
     8     CREDIT PROGRAMS; AND PROVIDING FOR FREE AND REDUCED-PRICE
     9     SCHOOL LUNCHES IN CERTAIN CIRCUMSTANCES.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Section 102 of the act of March 10, 1949 (P.L.30,
    13  No.14), known as the Public School Code of 1949, is amended by
    14  adding a definition to read:
    15     Section 102.  Definitions.--When used in this act the
    16  following words and phrases shall have the following meanings:
    17     * * *
    18     "Extracurricular activity."  Any activity covered by the
    19  provisions of section 511 which meets the following


     1  requirements:
     2     (1)  sponsored or approved by the board of school directors;
     3     (2)  not offered for credit toward graduation;
     4     (3)  conducted partially or entirely outside the regular
     5  instructional day schedule; and
     6     (4)  available to any student enrolled in the district's
     7  schools who voluntarily elects to participate and be subject to
     8  the eligibility requirements of the activity.
     9  A school district's program of interscholastic athletics,
    10  including varsity sports, shall be deemed extracurricular in
    11  nature and shall cover all activities relating to competitive
    12  sports contests, games, events or exhibitions involving
    13  individual students or teams of students of the school district
    14  whenever such activities occur between schools within the
    15  district or with schools outside the district.
    16     * * *
    17     SECTION 2.  SECTION 696(I)(3) OF THE ACT, AMENDED OCTOBER 30,  <--
    18  2001 (P.L.828, NO.83), IS AMENDED TO READ:
    19     SECTION 696.  DISTRESS IN SCHOOL DISTRICTS OF THE FIRST
    20  CLASS.--* * *
    21     (I)  IN ADDITION TO ALL POWERS GRANTED TO THE SUPERINTENDENT
    22  BY LAW AND A SPECIAL BOARD OF CONTROL UNDER SECTION 693 AND
    23  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE SCHOOL REFORM
    24  COMMISSION SHALL HAVE THE FOLLOWING POWERS:
    25     * * *
    26     (3)  TO SUSPEND THE REQUIREMENTS OF THIS ACT AND REGULATIONS
    27  OF THE STATE BOARD OF EDUCATION EXCEPT THAT THE SCHOOL DISTRICT
    28  SHALL REMAIN SUBJECT TO THOSE PROVISIONS OF THIS ACT SET FORTH
    29  IN SECTION 1361, 1732-A(A), (B) AND (C) AND SECTION 1714-B AND
    30  REGULATIONS UNDER THOSE SECTIONS.
    20050H0586B2314                  - 2 -     

     1     * * *
     2     SECTION 3.  SECTIONS 2003-B(C) AND (D) AND 2007-B OF THE ACT,
     3  AMENDED DECEMBER 23, 2003 (P.L.304, NO.48), ARE AMENDED TO READ:
     4  SECTION 2003-B.  QUALIFICATION AND APPLICATION.
     5     * * *
     6     (C)  SCHOLARSHIP ORGANIZATIONS AND PRE-KINDERGARTEN
     7  SCHOLARSHIP ORGANIZATIONS.--A SCHOLARSHIP ORGANIZATION OR PRE-
     8  KINDERGARTEN SCHOLARSHIP ORGANIZATION MUST CERTIFY TO THE
     9  DEPARTMENT THAT THE ORGANIZATION IS ELIGIBLE TO PARTICIPATE IN
    10  THE PROGRAM ESTABLISHED UNDER THIS ARTICLE[.] AND MUST AGREE TO
    11  ANNUALLY REPORT THE FOLLOWING INFORMATION TO THE DEPARTMENT BY
    12  SEPTEMBER 1, 2005, AND SEPTEMBER 1 OF EACH YEAR THEREAFTER:
    13         (1)  (I)  THE NUMBER OF SCHOLARSHIPS AWARDED DURING THE
    14         IMMEDIATELY PRECEDING SCHOOL YEAR TO ELIGIBLE PRE-
    15         KINDERGARTEN STUDENTS.
    16             (II)  THE TOTAL AND AVERAGE AMOUNTS OF THE
    17         SCHOLARSHIPS AWARDED DURING THE IMMEDIATELY PRECEDING
    18         SCHOOL YEAR TO ELIGIBLE PRE-KINDERGARTEN STUDENTS.
    19             (III)  THE NUMBER OF SCHOLARSHIPS AWARDED DURING THE
    20         IMMEDIATELY PRECEDING SCHOOL YEAR TO ELIGIBLE STUDENTS IN
    21         GRADES K-8.
    22             (IV)  THE TOTAL AND AVERAGE AMOUNTS OF THE
    23         SCHOLARSHIPS AWARDED DURING THE IMMEDIATELY PRECEDING
    24         SCHOOL YEAR TO ELIGIBLE STUDENTS IN GRADES K-8.
    25             (V)  THE NUMBER OF SCHOLARSHIPS AWARDED DURING THE
    26         IMMEDIATELY PRECEDING SCHOOL YEAR TO ELIGIBLE STUDENTS IN
    27         GRADES 9-12.
    28             (VI)  THE TOTAL AND AVERAGE AMOUNTS OF THE
    29         SCHOLARSHIPS AWARDED DURING THE IMMEDIATELY PRECEDING
    30         SCHOOL YEAR TO ELIGIBLE STUDENTS IN GRADES 9-12.
    20050H0586B2314                  - 3 -     

     1             (VII)  WHERE THE SCHOLARSHIP ORGANIZATION OR PRE-
     2         KINDERGARTEN SCHOLARSHIP ORGANIZATION COLLECTS
     3         INFORMATION ON A COUNTY-BY-COUNTY BASIS, THE TOTAL NUMBER
     4         AND THE TOTAL AMOUNT OF SCHOLARSHIPS AWARDED DURING THE
     5         IMMEDIATELY PRECEDING SCHOOL YEAR TO RESIDENTS OF EACH
     6         COUNTY IN WHICH THE SCHOLARSHIP ORGANIZATION OR PRE-
     7         KINDERGARTEN SCHOLARSHIP ORGANIZATION AWARDED
     8         SCHOLARSHIPS.
     9         (2)  THE INFORMATION REQUIRED UNDER PARAGRAPH (1) SHALL
    10     BE SUBMITTED ON A FORM PROVIDED BY THE DEPARTMENT. NO LATER
    11     THAN JULY 1, 2005, AND JULY 1 OF EACH YEAR THEREAFTER, THE
    12     DEPARTMENT SHALL ANNUALLY DISTRIBUTE SUCH SAMPLE FORMS,
    13     TOGETHER WITH THE FORMS ON WHICH THE REPORTS ARE REQUIRED TO
    14     BE MADE, TO EACH LISTED SCHOLARSHIP ORGANIZATION AND PRE-
    15     KINDERGARTEN SCHOLARSHIP ORGANIZATION.
    16         (3)  THE DEPARTMENT MAY NOT REQUIRE ANY OTHER INFORMATION
    17     TO BE PROVIDED BY SCHOLARSHIP ORGANIZATIONS OR PRE-
    18     KINDERGARTEN SCHOLARSHIP ORGANIZATIONS, EXCEPT AS EXPRESSLY
    19     AUTHORIZED IN THIS 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. THE DEPARTMENT SHALL CONSULT
    25     WITH THE DEPARTMENT OF EDUCATION AS NECESSARY. THE DEPARTMENT
    26     SHALL REVIEW AND APPROVE OR DISAPPROVE THE APPLICATION. IN
    27     ORDER TO BE ELIGIBLE TO PARTICIPATE IN THE PROGRAM
    28     ESTABLISHED UNDER THIS ARTICLE, AN EDUCATIONAL IMPROVEMENT
    29     ORGANIZATION MUST AGREE TO ANNUALLY REPORT THE FOLLOWING
    30     INFORMATION TO THE DEPARTMENT BY SEPTEMBER 1, 2005, AND
    20050H0586B2314                  - 4 -     

     1     SEPTEMBER 1 OF EACH YEAR THEREAFTER:
     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 AMOUNT OF GRANTS MADE DURING
    17         THE IMMEDIATELY PRECEDING SCHOOL YEAR FOR PROGRAMS AT
    18         PUBLIC SCHOOLS IN EACH COUNTY IN WHICH THE EDUCATIONAL
    19         IMPROVEMENT ORGANIZATION MADE GRANTS.
    20         (2)  THE DEPARTMENT SHALL PREPARE SAMPLE FORMS FOR
    21     REPORTING THE DATA REQUIRED UNDER THIS SUBSECTION, AND SHALL
    22     ANNUALLY DISTRIBUTE SUCH SAMPLE FORMS, TOGETHER WITH THE
    23     FORMS ON WHICH THE REPORTS ARE REQUIRED TO BE MADE, TO EACH
    24     LISTED EDUCATIONAL IMPROVEMENT ORGANIZATION BY JULY 1 OF EACH
    25     YEAR. THE DEPARTMENT MAY NOT REQUIRE ANY OTHER INFORMATION TO
    26     BE PROVIDED BY EDUCATIONAL IMPROVEMENT ORGANIZATIONS, EXCEPT
    27     AS EXPRESSLY AUTHORIZED IN THIS ARTICLE.
    28     * * *
    29  SECTION 2007-B.  LISTS AND REPORTS.
    30     (A)  ANNUAL LISTING OF ORGANIZATIONS.--THE DEPARTMENT OF
    20050H0586B2314                  - 5 -     

     1  REVENUE SHALL PROVIDE A LIST OF ALL SCHOLARSHIP ORGANIZATIONS,
     2  PRE-KINDERGARTEN SCHOLARSHIP ORGANIZATIONS AND EDUCATIONAL
     3  IMPROVEMENT ORGANIZATIONS RECEIVING CONTRIBUTIONS FROM BUSINESS
     4  FIRMS GRANTED A TAX CREDIT UNDER THIS ARTICLE TO THE GENERAL
     5  ASSEMBLY BY JUNE 30 OF EACH YEAR.
     6     (B)  CONTENTS OF ANNUAL REPORT.--THE DEPARTMENT, IN
     7  CONSULTATION WITH THE DEPARTMENT OF EDUCATION AND THE DEPARTMENT
     8  OF REVENUE, SHALL REPORT, BY DECEMBER 31, 2005, AND DECEMBER 31
     9  OF EACH YEAR THEREAFTER, THE FOLLOWING INFORMATION:
    10         (1)  THE TOTAL NUMBER OF SCHOLARSHIPS AWARDED DURING THE
    11     IMMEDIATELY PRECEDING SCHOOL YEAR TO ELIGIBLE PRE-
    12     KINDERGARTEN STUDENTS.
    13         (2)  THE TOTAL AND AVERAGE AMOUNTS OF SCHOLARSHIPS
    14     AWARDED DURING THE IMMEDIATELY PRECEDING SCHOOL YEAR TO
    15     ELIGIBLE PRE-KINDERGARTEN STUDENTS.
    16         (3)  THE TOTAL NUMBER OF SCHOLARSHIPS AWARDED DURING THE
    17     IMMEDIATELY PRECEDING SCHOOL YEAR TO ELIGIBLE STUDENTS IN
    18     GRADES K-8.
    19         (4)  THE TOTAL AND AVERAGE AMOUNTS OF SCHOLARSHIPS
    20     AWARDED DURING THE IMMEDIATELY PRECEDING SCHOOL YEAR TO
    21     ELIGIBLE STUDENTS IN GRADES K-8.
    22         (5)  THE TOTAL NUMBER OF SCHOLARSHIPS AWARDED DURING THE
    23     IMMEDIATELY PRECEDING SCHOOL YEAR TO ELIGIBLE STUDENTS IN
    24     GRADES 9-12.
    25         (6)  THE TOTAL AND AVERAGE AMOUNTS OF SCHOLARSHIPS
    26     AWARDED DURING THE IMMEDIATELY PRECEDING SCHOOL YEAR TO
    27     ELIGIBLE STUDENTS IN GRADES 9-12.
    28         (7)  TO THE EXTENT THAT SUCH INFORMATION IS REPORTED
    29     UNDER SECTION 2003-B(C)(1)(VII), THE TOTAL NUMBER AND THE
    30     TOTAL AMOUNTS OF ALL SCHOLARSHIPS AWARDED DURING THE
    20050H0586B2314                  - 6 -     

     1     IMMEDIATELY PRECEDING SCHOOL YEAR TO RESIDENTS OF EACH COUNTY
     2     IN THIS COMMONWEALTH.
     3         (8)  THE NAMES OF ALL EDUCATIONAL IMPROVEMENT
     4     ORGANIZATIONS MAKING GRANTS DURING THE IMMEDIATELY PRECEDING
     5     SCHOOL YEAR, THE NAMES OF ALL INNOVATIVE EDUCATIONAL PROGRAMS
     6     RECEIVING SUCH GRANTS AND THE TOTAL AMOUNT OF SUCH GRANTS
     7     RECEIVED BY EACH EDUCATIONAL IMPROVEMENT ORGANIZATION.
     8         (9)  A DESCRIPTION OF HOW GRANTS MADE DURING THE
     9     IMMEDIATELY PRECEDING SCHOOL YEAR WERE UTILIZED IN EACH
    10     INNOVATIVE EDUCATIONAL PROGRAM, INCLUDING DEMONSTRATED OR
    11     EXPECTED INNOVATIVE EDUCATIONAL IMPROVEMENTS.
    12         (10)  THE NAMES OF THE PUBLIC SCHOOLS AND SCHOOL
    13     DISTRICTS WHERE INNOVATIVE EDUCATIONAL PROGRAMS THAT RECEIVED
    14     GRANTS DURING THE IMMEDIATELY PRECEDING SCHOOL YEAR WERE
    15     IMPLEMENTED.
    16         (11)  THE TOTAL NUMBER OF BUSINESS FIRMS RECEIVING TAX
    17     CREDITS UNDER THIS ARTICLE DURING THE IMMEDIATELY PRECEDING
    18     FISCAL YEAR.
    19         (12)  THE NUMBER OF BUSINESSES THAT MADE TOTAL
    20     CONTRIBUTIONS, FOR WHICH THEY RECEIVED TAX CREDITS UNDER THIS
    21     ARTICLE DURING THE IMMEDIATELY PRECEDING FISCAL YEAR, IN
    22     AMOUNTS LESS THAN $10,000.
    23         (13)  THE NUMBER OF BUSINESSES THAT MADE TOTAL
    24     CONTRIBUTIONS, FOR WHICH THEY RECEIVED TAX CREDITS UNDER THIS
    25     ARTICLE DURING THE PREVIOUS FISCAL YEAR, IN AMOUNTS GREATER
    26     THAN OR EQUAL TO $10,000 AND LESS THAN OR EQUAL TO $100,000.
    27         (14)  THE NUMBER OF BUSINESSES THAT MADE TOTAL
    28     CONTRIBUTIONS, FOR WHICH THEY RECEIVED TAX CREDITS UNDER THIS
    29     ARTICLE DURING THE PREVIOUS FISCAL YEAR, IN AMOUNTS GREATER
    30     THAN OR EQUAL TO $100,000 AND LESS THAN OR EQUAL TO $200,000.
    20050H0586B2314                  - 7 -     

     1         (15)  THE NUMBER OF BUSINESSES THAT MADE TOTAL
     2     CONTRIBUTIONS, FOR WHICH THEY RECEIVED TAX CREDITS UNDER THIS
     3     ARTICLE DURING THE PREVIOUS FISCAL YEAR, IN AMOUNTS GREATER
     4     THAN $200,000.
     5     SECTION 4.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
     6     SECTION 2505.2.  SUPPLEMENTAL FUNDING FOR SCHOOL LUNCHES.--
     7  NOTWITHSTANDING FEDERAL FUNDING OF SCHOOL LUNCHES FOR
     8  INDIVIDUALS WHO QUALIFY FOR FREE OR REDUCED-PRICE LUNCHES, THERE
     9  SHALL BE A SUPPLEMENT FROM THE GENERAL FUND ANNUALLY TO ACHIEVE
    10  THE FOLLOWING:
    11     (1)  INDIVIDUALS WHO LIVE AT OR UNDER ONE HUNDRED EIGHTY-FIVE
    12  PER CENTUM (185%) OF THE FEDERAL POVERTY GUIDELINE SHALL RECEIVE
    13  FREE SCHOOL LUNCH EACH SCHOOL DAY.
    14     (2)  INDIVIDUALS WHO LIVE BETWEEN ONE HUNDRED EIGHTY-FIVE PER
    15  CENTUM (185%) AND TWO HUNDRED FIFTY PER CENTUM (250%) OF THE
    16  FEDERAL POVERTY GUIDELINE SHALL RECEIVE SCHOOL LUNCH EACH SCHOOL
    17  DAY AT THE REDUCED PRICE SPECIFIED UNDER FEDERAL GUIDELINES.
    18     Section 2.  This act shall take effect in 60 days.             <--
    19     SECTION 5.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:             <--
    20         (1)  THE AMENDMENT OF SECTION 696 OF THE ACT SHALL TAKE
    21     EFFECT IMMEDIATELY.
    22         (2)  THIS SECTION SHALL TAKE EFFECT IMMEDIATELY.
    23         (3)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
    24     DAYS.




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