THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY CHRISTIANA, TURZAI, PAYTON, COX, BLOOM, MICOZZIE, QUIGLEY, SIMMONS, SWANGER AND WHEATLEY, JUNE 21, 2011

REFERRED TO COMMITTEE ON EDUCATION, JUNE 21, 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," providing for opportunity

scholarships; establishing the educational improvement tax

credit; and making related repeals.

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

STUDENTS AND SCHOOLS RESCUE ACT

(a)  Preliminary Provisions

Section 2501-B.  Short title of article.

This article shall be known and may be cited as the Students

and Schools Rescue Act.

Section 1501.1-B.  Scope of article.

This article relates to opportunity scholarships and

educational improvement tax credits.

(b)  Opportunity Scholarships

Section 2501.2-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 low

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.

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.

"Elementary school."  A school that does not have an eleventh

grade.

"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.

"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 a percentage of the low-income child's

resident school district's total local revenue per average

daily membership as specified by the resident school

district; provided, however, that once a percentage is

established for a local scholarship recipient such percentage

may not be decreased..

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

attend a nonresident public school.

"Low achieving school."  A public elementary or secondary

school within this Commonwealth ranking in the lowest 10% of its

designation as elementary or secondary, based on combined math

and reading scores from the most recent assessment for which

data is posted on the department's publicly accessible Internet

website. The term shall not include a charter school, cyber

charter school, area vocational-technical school, magnet school

or school that does not draw its student body from a particular

attendance boundary and any school with specialized academic

programs with specific admission criteria.

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

income that does not exceed 2.5 times the Federal poverty line

for the school year preceding the school year for which an

opportunity scholarship is to be distributed.

"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 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."  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 grade 12, or a combination of grades, that

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

all of 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, except that an

applicant may be required to meet established eligibility

criteria for participation in magnet schools or in schools

with specialized academic missions.

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

Federal and State laws applicable to nonpublic schools on the

day prior to the effective date of this section.

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

school-age child resides.

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

through grade 12.

"Secondary school."  A school with an eleventh grade.

"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 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 2012-2013 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 2012-2013 school year, the opportunity

scholarship program shall be available to low-income children

who satisfy both of the following:

(i)  Either attended a low achieving school during

the 2011-2012 school year or will be a kindergarten

student during the 2012-2013 school year.

(ii)  Will reside within the attendance boundary of a

low achieving school as of the first day of classes of

the 2012-2013 school year.

(2)  During the 2013-2014 school year and each year

thereafter, the opportunity scholarship program shall be

available to low-income children who qualified for the

program for the 2012-2013 school year under paragraph (1) and

to low-income children who will reside within the attendance

boundary of a low achieving school as of the first day of

classes of the 2013-2014 school year and each year

thereafter.

(c)  School list.--The department shall, by February 1, 2012,

and by February 1 of each year thereafter, publish on the

department's publicly accessible Internet website and in the

Pennsylvania Bulletin a list of low achieving schools that shall

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

department, 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 if 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

low 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

department.

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 department, 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

department 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 department, notify the

department of the availability and amount of the local

scholarship for the following school year.

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

department the local scholarship for each low-income child

residing in the district who the department determines to be

eligible for the local scholarship and who the department

confirms has enrolled in a nonresident public school.

(4)  Comply with all guidelines developed by the

department under section 2507-B.

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

(1)  By a date established by the department and pursuant

to guidelines developed by the department under section 2507-

B, the parent of a low-income child may apply to the

department:

(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 department, the

department 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 department, 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 department, the

nonresident school district shall provide written notice

to the parent and the department 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 department, the

parent shall provide written notice to the department,

the resident school district and the nonresident school

district whether the offer of enrollment will be

accepted.

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

department must 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 notify the department if

it intends to enroll nonresident students receiving

opportunity and local scholarships and shall develop an

enrollment application form and process. If a school district

determines it will enroll nonresident students receiving

opportunity and local scholarships, the school district must

enroll the nonresident students on a random basis from a pool

of applicants who meet the application deadline established

by the department, if:

(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 in the process of being expelled under section

1317.2 or 1318 and applicable regulations of the

Department 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 any of the following:

(i)  A nonresident student who has been awarded a

local scholarship.

(ii)  A nonresident student who is the sibling of a

student who is currently enrolled in the nonresident

school district.

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

payment pursuant to the schedule contained under 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 is 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, except 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:

(A)  the current year cost of the services had

the opportunity scholarship recipient remained in the

resident school district; and

(B)  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

department 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)  If 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 department 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 department within five days of

the opportunity scholarship recipient's enrollment.

(iii)  Within 30 days after receiving the notice

required under subparagraph (ii), the department 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. 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, a

school district that provides its resident public school

pupils with transportation to and from the resident public

schools 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 the nonresident public school

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)  Procedure.--

(1)  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 comply with the

provisions of this subsection.

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

parent must apply to the department for an opportunity

scholarship for the following school year pursuant to

guidelines developed by the department under section

2507-B.

(ii)  By a date established by the department, the

department shall notify parents whether the opportunity

scholarship will be awarded for the following school

year.

(3)  (i)  The parent must apply for enrollment directly

to the participating nonpublic school pursuant to

application procedures developed by the participating

nonpublic school.

(ii)  By a date established by the department, a

participating nonpublic school shall provide written

confirmation to the department of each opportunity

scholarship recipient whose application for enrollment

has been accepted for the following school year.

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

department 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 scholarships.--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)  (i)  Opportunity scholarships shall be awarded only

for the payment of costs of tuition at a participating

nonpublic school within this Commonwealth.

(ii)  Opportunity scholarships shall not be awarded

for enrollment in a home education program provided under

section 1327.1.

(2)  (i)  Opportunity scholarships shall be paid to the

parents of an opportunity scholarship recipient upon the

department's receipt of written confirmation of

enrollment from the participating nonpublic school

selected by the recipient.

(ii)  The opportunity scholarship 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)  If 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 department with written notice

of the opportunity scholarship recipient's withdrawal

from the participating nonpublic school.

(B)  Return to the department 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 department the amount required to be paid

under subparagraph (i), the department 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 department shall pay the parent of the

opportunity scholarship recipient the opportunity

scholarship prorated for the remaining portion of the

school year.

(4)  (i)  If 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 department shall pay the

resident school district the opportunity scholarship

award, prorated for the remaining portion of the school

year.

(ii)  The resident school district shall apply the

payment calculated under subparagraph (i) toward

providing educational services for the opportunity

scholarship recipient, pursuant to Federal and State law. 

(c)  Disclosure of penalties.--

(1)  Each opportunity scholarship check issued under this

section shall contain the following statement:

"Failure to endorse this check as directed by the

department 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 awarded to the

parent.

(ii)  Disqualification from future eligibility for an

opportunity scholarship.

(iii)  Criminal prosecution.

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

participating nonpublic school that 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

department, a nonpublic school that desires to enroll

opportunity scholarship recipients under this subarticle

shall certify to the department that it satisfies the

definition of "participating nonpublic school" in section

2502-B. The certification shall be submitted on a form

developed by the department.

(d.1)  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, 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 and 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 subparagraph (i), 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 department 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), except 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

may not impose an assessment or testing fee on an opportunity

scholarship recipient.

(5)  The department may not require a participating

nonpublic school to provide individual or aggregate results

of the testing administered under this subsection beyond the

manner prescribed in paragraph (3).

(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 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 base 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. The base amount shall be multiplied by the

appropriate factor set forth in this subsection to determine

each opportunity scholarship recipient's actual opportunity

scholarship amount.

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

opportunity scholarship 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 has not received an

opportunity scholarship.

(c)  Annual appropriations.--Opportunity scholarships

authorized under this subarticle shall be made from annual

appropriations made by the General Assembly to the department

for the 2012-2013 school year and each school year thereafter.

The total amount of opportunity scholarships provided for the

2013-2014 school year and each year thereafter shall be limited

to the amount of money appropriated for that fiscal year. 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 department

shall make pro rata reductions in the amount of the opportunity

scholarship provided to each opportunity scholarship recipient

(d)  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

opportunity scholarships constitute financial assistance or

appropriations to the participating nonpublic school attended by

the opportunity scholarship recipient.

(e)  Continued eligibility.--

(1)  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.

(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 department shall make a pro rata

reduction in the child's opportunity scholarship based

upon the child's household income.

(f)  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 department 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.

(g)  Residence in more than one school district within school

year.--When 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 120 days of the effective date of

this section, the department, subject to the approval of the

board under section 2509-B(f)(2), 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

scholarships, 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 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

department 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 programs.

(9)  Procedures to determine the eligibility of homeless

students for opportunity scholarships under this subarticle,

consistent with the McKinney-Vento 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 department, school districts, participating nonpublic

schools and parents under this subarticle.

(11)  Policies and procedures to be followed by the

participating nonpublic schools in posting the aggregate

results of the assessment or nationally normed standardized

achievement test administered to opportunity scholarship

recipients pursuant to section 2505-B(e)(3)(ii) provided that

the department may not require a participating nonpublic

school to provide individual or aggregate results of the

testing administered under section 2505-B(e) directly to the

department or require a participating nonpublic school to

provide testing results or information beyond the

requirements of section 2505-B(e)(3).

(12)  Other procedures as are necessary to fully

implement the opportunity and local scholarship programs.

(13)  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:

(i)  California Achievement Test.

(ii)  Comprehensive Testing Program (CTPIV).

(iii)  Iowa Test of Basic Skills.

(iv)  Metropolitan Achievement Test.

(v)  Peabody Achievement Individual Test - Revised

Version.

(vi)  Stanford Achievement Test.

(vii)  Terra Nova.

(viii)  Woodcock Johnson Revised Tests of Achievement

III.

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

statement of policy in the Pennsylvania Bulletin. The department

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 department, and any amendments to

the guidelines, 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.

(a)  General rule.--Notwithstanding any other provision of

law to the contrary, beginning in the second consecutive school

year of enrollment in a nonresident public school or a

participating nonpublic school by an opportunity scholarship

recipient who was enrolled in the recipient's resident school

district or in a charter school or cyber charter school when the

recipient first received an opportunity scholarship under this

subarticle, the amount of Commonwealth basic education funding

paid by the department to the resident school district shall be

reduced by an amount equal to the Commonwealth's share of the

school district's total revenue per average daily membership.

(b)  Average daily membership.--Where a resident school

district's basic education funding is reduced under subsection

(a), the resident school district shall continue to include the

opportunity scholarship recipient in the resident school

district's average daily membership.

Section 2509-B.  Education Opportunity Board.

(a)  Establishment.--

(1)  The Education Opportunity Board is established

within the department.

(2)  The board shall consist of three members. A member

must be a resident of this Commonwealth.

(3)  Initial members shall be appointed by the Governor.

The Governor may appoint no more than two members to the

board who are members of the same political party as the

Governor.

(4)  Upon the expiration of the term or the occurrence of

a vacancy in the office of a member of the board, the

Governor shall appoint a successor member with the advice and

consent of a majority of the members elected to the Senate.

(b)  Terms.--A member shall serve a term of four years. A

member shall continue to serve after the expiration of the term

until the Governor appoints a replacement who is confirmed by a

majority of the members elected to the Senate.

(c)  Chairperson.--The Governor shall annually select a

chairperson from among the membership of the board.

(d)  Meetings.--

(1)  Meetings shall be held:

(i)  at least quarterly at the call of the

chairperson; and

(ii)  upon request in writing of a majority of the

board.

(2)  Two members constitute a quorum. Unless otherwise

specified in this subarticle, a quorum may act upon a matter

properly before the board.

(e)  Compensation prohibited.--Members of the board shall

receive no compensation for services but shall be reimbursed for

actual and necessary expenses incurred in the performance of

official duties.

(f)  Powers and duties.--The board has the following powers

and duties:

(1)  Advise the department concerning the implementation

and administration of the opportunity scholarship and local

scholarship programs.

(2)  Approve guidelines established by the department

under section 2507-B.

(3)  Prepare an annual report to be submitted by December

1 to the chair and minority chair of the Education Committee

of the Senate and the chair and minority chair of the

Education Committee of the House of Representatives. The

report shall describe the manner in which the board carries

out its powers and duties under this subsection.

(g)  Staff.--The department shall provide, from existing

personnel of the department, adequate staffing to facilitate the

responsibilities of the board.

Section 2509.1-B.  Powers and duties of department.

The department has the following powers and duties:

(1)  Establish, under section 2507-B, guidelines for the

administration of the local scholarship program and the

opportunity scholarship program.

(2)  Administer the application and approval processes

for local scholarships and opportunity scholarships. This

paragraph includes developing:

(i)  application forms and other necessary forms; and

(ii)  the notice under section 2503-B(d).

(4)  Review and verify the income and residence of each

applicant for a local scholarship and an opportunity

scholarship.

(5)  Announce the award of local scholarships and

opportunity scholarships for the following school year under

sections 2504-B(c) and 2505-B(a).

(6)  Confirm the enrollment of opportunity scholarship

recipients in nonresident public schools and participating

nonpublic schools and allocate opportunity scholarship funds

to opportunity scholarship recipients.

(7)  Make payment of opportunity scholarships under

sections 2504-B and 2505-B.

(8)  Notify school districts that elect to create local

scholarships when payment must be made under section 2504-B

(b).

(9)  Make payment to nonresident public schools of local

scholarships paid to the department under section 2504-B(b)

(3).

(10)  Beginning after the first school year of

implementation of the opportunity scholarship program,

prepare an annual report to be submitted by December 1 to the

Governor, the Secretary of the Senate and the Chief Clerk of

the House of Representatives and to be made available to the

parents of opportunity scholarship recipients and placed on

the department's publicly accessible Internet website. The

report shall include at least the following information for

the prior school year:

(i)  Total number of opportunity scholarships

requested.

(ii)  Total number and total dollar amount of

opportunity scholarships awarded. Totals under this

subparagraph shall be classified as to:

(A)  whether the opportunity scholarship

recipient attends a nonresident public school or a

participating nonpublic school;

(B)  the grade level of the opportunity

scholarship recipient; and

(C)  whether the opportunity scholarship

recipient resides in a school district with at least

one low achieving school.

(iii)  Administrative cost of the opportunity

scholarship program.

(iv)  A list of nonresident public schools to which

opportunity scholarship funds were disbursed on behalf of

opportunity scholarship recipients and the amount

disbursed to each nonresident public school.

(v)  A list of participating nonpublic schools in

which opportunity scholarship recipients enrolled and the

number of opportunity scholarship recipients who enrolled

in each participating nonpublic school.

(vi)  Total number and total dollar amount of local

scholarships awarded. Totals under this subparagraph

shall be classified as to resident school districts that

made the local scholarship awards.

Section 2510-B.  Study.

Following the 2015-2016 school year, the department shall

conduct a study of the effectiveness of the opportunity

scholarship program and shall deliver a written report of its

findings, including any recommendations for changes to the

program, to the Governor, the chair and minority chair of the

Education Committee of the Senate and the chair and minority

chair of the Education Committee of the House of Representatives

by December 31, 2016. The following apply:

(1)  The study shall assess the effectiveness of section

2505-B(e).

(2)  Except as set forth in paragraph (3), the study

shall be conducted using only data posted on the

participating nonpublic school's publicly accessible Internet

website under section 2505-B(e)(3)(ii).

(3)  The study may include an examination of individual

student test results or files maintained by participating

nonpublic schools.

Section 2511-B.  Exclusive jurisdiction of Supreme Court.

The Supreme Court shall have exclusive jurisdiction to hear a

challenge or to render a declaratory judgment concerning the

constitutionality of this subarticle. The Supreme Court may take

appropriate action, consistent with retaining jurisdiction, to

find facts or to expedite a final judgment in connection with

the matter.

(c)  Educational Improvement Tax Credit

Section 2521-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:

"Business firm."  An entity authorized to do business in this

Commonwealth and subject to taxes imposed under Article III, IV,

VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971. The term includes a

pass-through entity.

"Contribution."  A donation of cash, personal property or

services, the value of which is the net cost of the donation to

the donor or the pro rata hourly wage, including benefits, of

the individual performing the services.

"Department."  The Department of Community and Economic

Development of the Commonwealth.

"Educational improvement organization."  A nonprofit entity

which:

(1)  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.); and

(2)  contributes at least 80% of its annual receipts as

grants to a public school, a chartered school as defined in

section 1376.1 or a private school approved under section

1376 for innovative educational programs.

For purposes of this definition, a nonprofit entity contributes

its annual cash receipts when it expends or otherwise

irrevocably encumbers those funds for expenditure during the

then current fiscal year of the nonprofit entity or during the

next succeeding fiscal year of the nonprofit entity. A nonprofit

entity includes a school district foundation, public school

foundation, charter school foundation or cyber charter school

foundation.

"Eligible prekindergarten student."  A student, including an

eligible student with a disability, who is enrolled in a

prekindergarten program and is a member of a household with a

maximum annual household income as increased by the applicable

income allowance.

"Eligible student."  A school-age student, including an

eligible student with a disability, who is enrolled in a school

and is a member of a household with a maximum annual household

income as increased by the applicable income allowance.

"Eligible student with a disability."  A prekindergarten

student or a school-age student who meets all of the following:

(1)  Is either enrolled in a special education school or

has otherwise 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 child with a disability).

(2)  Needs special education and related services.

(3)  Is enrolled in a prekindergarten program or in a

school.

(4)  Is a member of a household with a household income

of not more than the maximum annual household income.

"Household."  An individual living alone or with the

following: a spouse, parent and their unemancipated minor

children, other unemancipated minor children who are related by

blood or marriage or other adults or unemancipated minor

children living in the household who are dependent upon the

individual.

"Household income."  All money or property received of

whatever nature and from whatever source derived. The term does

not include the following:

(1)  Periodic payments for sickness and disability other

than regular wages received during a period of sickness or

disability.

(2)  Disability, retirement or other payments arising

under workers' compensation acts, occupational disease acts

and similar legislation by any government.

(3)  Payments commonly recognized as old-age or

retirement benefits paid to persons retired from service

after reaching a specific age or after a stated period of

employment.

(4)  Payments commonly known as public assistance or

unemployment compensation payments by a governmental agency.

(5)  Payments to reimburse actual expenses.

(6)  Payments made by employers or labor unions for

programs covering hospitalization, sickness, disability or

death, supplemental unemployment benefits, strike benefits,

Social Security and retirement.

(7)  Compensation received by United States servicemen

serving in a combat zone.

"Income allowance."

(1)  Subject to paragraph (2), the amount of:

(i)  Before July 1, 2011, $10,000 for each eligible

student, eligible prekindergarten student and dependent

member of a household.

(ii)  After June 30, 2011, through June 30, 2012,

$12,000 for each eligible student, eligible

prekindergarten student and dependent member of a

household.

(iii)  After June 30, 2012, through June 30, 2013,

$15,000 for each eligible student, eligible

prekindergarten student and dependent member of a