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, AS AMENDED, MARCH 1, 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 Excess Scholarship Fund;

providing 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

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subarticle.

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

determining eligibility for a free or reduced-price lunch under

the Richard B. Russell National School Lunch Act (60 Stat. 230,

1751 et seq.).

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

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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.

"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

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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.);

(1) (2)  the nonpublic school does not discriminate in

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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

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

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all Federal and State laws.

"Persistently lowest achieving school."  A public elementary

or secondary school within this Commonwealth achieving within

the lowest measured group of 5% on the most recent assessment

for which data is posted on the Department of Education's

publicly accessible Internet website. The term does not include

a charter school, cyber charter school or, area vocational-

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technical school, a school that does not draw its student body

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from a particular attendance boundary or a school with a

specialized academic program that has specific admissions

criteria.

"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

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amount of reimbursement to the school district for pupil

transportation under section 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)  Attended Either attended a persistently lowest

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achieving school during the 2010-2011 school year or will

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be a kindergarten student during the 2011-2012 school

year.

(ii)  Will reside within the attendance boundary of a

persistently lowest achieving school during 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 satisfy

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both of the following:

(i)  Attended a nonpublic school during the 2010-2011

school year.

(ii)  Will will reside within the attendance boundary

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of a persistently lowest achieving school during the

2012-2013 school year.

(3)  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.

(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 to residents with school-age children.--

(1)  By May 1, 2011, and by March 1 of each year

thereafter, each school district in this Commonwealth shall

provide all residents of the school district with school-age

children with 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 school district shall provide such notice by

mail to all residents of the school district with school-age

children and by notice posted on the school district's

publicly accessible Internet website. 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 May 1, 2011, and by March 1 of each year

thereafter, notify all residents of the school district with

school-age children 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 provide the notice by mail to all residents of

the school district with school-age children and by notice

posted 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 May 1, 2011, and by March 1 of each year

thereafter, 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 June 1, 2011, and by April 1 of each year

thereafter, 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 July 1, 2011, and by May 1 of each year

thereafter, 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 July 15, 2011, and by June 1 of each year

thereafter, 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)  The nonresident school district shall provide

written notice to the parent and the board by August 1,

2011, and by July 1 of each year thereafter, as to

whether the child will be offered enrollment in the

requested nonresident public school for the following

school year.

(ii)  Within ten days of receipt of the notice, 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)  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 first-applied-first-accepted basis,

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; or

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(iii)  the nonresident student has not been recruited

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by the school district or its representatives for

athletic purposes; or

(iii) (iv)  the nonresident student meets the

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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.

(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 awarded to the opportunity

scholarship recipient.

(g)  Transportation.--Notwithstanding any provisions of

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(1)  Notwithstanding any provisions of section 1361 to

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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

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shall be subject to reimbursement under section 2541.

Section 2505-B.  Opportunity scholarships 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 June 1, 2011, and by April 1 of each year

thereafter, 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 July 1, 2011,

and by May 1 of each year thereafter, 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 August 1, 2011, and

by July 1 of each year thereafter, 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.

(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 is

no longer enrolled in 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 opportunity scholarship

recipient's parent 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. The amount returned to the parent under

this paragraph shall be paid by check which may be

endorsed by the parents only for repayment to the

board of the refunded opportunity scholarship award.

(ii)  If the parents of the opportunity scholarship

recipient fail to submit to the board the full amount of

the opportunity scholarship returned to the parents under

subparagraph (i) within 15 days of receipt of

notification from the board that such payment is due, 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 a parent who is required to submit a refund

to the board under subparagraph (ii) fails to submit the

full amount of the required refund to the board within

180 days of written demand thereof, the board shall also

impose a civil penalty not to exceed the full amount of

the annual opportunity scholarship award made to the

parents and disqualification from future eligibility for

an opportunity scholarship.

(iv)  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.

(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 law.

(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

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any public school student to enroll for athletic purposes.

(3) (4)  By June 1, 2011, and by April 1 of each year

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thereafter, 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

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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 and

extracurricular activities.

(d) (e)  Construction.--Nothing in this subarticle shall be

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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)  (i)  For a student enrolling in a participating

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nonpublic school in kindergarten or grades one through

eight, the board shall give priority in awarding

opportunity scholarships to students enrolling in

participating nonpublic schools that provide the student

with additional financial assistance that is either equal

to the amount of the opportunity scholarship award or is

in an amount that, when combined with the opportunity

scholarship award, is equal to the full tuition rate for

the participating nonpublic school.

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

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

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opportunity scholarship award and the any additional

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financial assistance provided by the 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 toward costs of the opportunity scholarship program

beginning in the 2012-2013 school year and each school year

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thereafter.

(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

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in the fund for that purpose.

(2)  In the event that insufficient moneys are

appropriated available in any fiscal year to provide

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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

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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.

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)  For an opportunity scholarship recipient enrolled in

a participating nonpublic school, 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

parents of opportunity scholarship recipients who withdraw

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)  Such other procedures as are necessary to fully

implement the opportunity and local scholarship and

interdistrict enrollment programs.

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

statement of policy in the Pennsylvania Bulletin. The board

shall mail a copy of the guidelines to each school district and

nonpublic school in this Commonwealth and 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

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

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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.

Section 2509-B.  Education Opportunity Board.

(a)  Establishment.--An independent board to be known as the

Education Opportunity Board is established within the

department. The board shall consist of three members appointed

by the Governor with the advice and consent of a majority of the

members elected to the Senate. The Governor may appoint no more

than two members to the board who are members of the same

political party as the Governor.

(b)  Terms of members.--Members of the board shall serve a

term of four years. Vacancies shall be filled for an unexpired

term in the same manner as original appointments. Members shall

continue to serve after the expiration of their term until the

Governor appoints a replacement who is confirmed by a majority

of the members elected to the Senate. All members of the board

must be residents of this Commonwealth.

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

chairperson from among the membership of the board.

(d)  Meetings.--Meetings shall be held at the call of the

chairperson or upon request in writing of a majority of the

board. A majority shall constitute a quorum and a majority of

such quorum shall have the authority to act upon any matter

properly before the board unless otherwise specified in this

subarticle.

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

receive no compensation for their services but shall be

reimbursed for their actual and necessary expenses incurred in

the performance of their official board duties.

(f)  Executive director and staff.--

(1)  There shall be an executive director of the board

who shall serve as the executive officer and secretary of the

board. The board shall employ and fix the reasonable

compensation of the executive director.

(2)  The executive director, with approval of the board,

may employ additional professional and clerical personnel as

may be necessary to carry out the duties and responsibilities

of the board.

(3)  The department shall provide adequate funding, space

and equipment to facilitate the activities of the board.

(g)  Legal advice and assistance.--The Governor, through his

General Counsel, shall provide such legal advice and assistance

as the board may require.

(h)  Powers and duties.--The board shall have the following

powers and duties:

(1)  Establish guidelines for the administration of the

opportunity and local scholarship programs as required under

section 2507-B.

(2)  Administer the opportunity and local scholarship

application and approval processes.

(3)  Develop the opportunity and local scholarship

application form and any other forms necessary to administer

the opportunity and local scholarship programs, including the

notice required to be provided by school districts under

section 2503-B(d).

(4)  Review and verify the income and residence of

opportunity and local scholarship applicants.

(5)  Announce the award of opportunity and local

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)  Beginning after the first school year of

implementation of the opportunity scholarship program,

prepare a report to be submitted to the Governor and the

General Assembly by December 1 of each year, made available

to the parents of opportunity scholarship recipients and

placed on the department's publicly accessible Internet

website that includes at least the following information for

the prior school year:

(i)  The total number of opportunity scholarships

requested.

(ii)  The total number and total dollar amount of

opportunity scholarships awarded, in total and

disaggregated by:

(A)  Whether the opportunity scholarship

recipient attends a nonresident public school or a

participating nonpublic school.

(B)  Grade level of the opportunity scholarship

recipient.

(C)  Whether the opportunity scholarship

recipient resides in a school district with at least

one persistently lowest achieving school.

(iii)  The administrative costs of the opportunity

scholarship program.

(iv)  A listing 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 listing 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)  The total number and total dollar amount of

local scholarships awarded, disaggregated by the resident

school districts that made the local scholarship awards.

Section 2510-B.  Study.

Following the 2014-2015 school year, the board 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 chairman and minority chairman of the Education

Committee of the Senate and the chairman and minority chairman

of the Education Committee of the House of Representatives by

December 31, 2015.

Section 2511-B.  Exclusive jurisdiction of Supreme Court.

The Pennsylvania Supreme Court shall have exclusive

jurisdiction to hear any challenge or to render a declaratory

judgment concerning the constitutionality of this subarticle.

The Supreme Court may take such action as it deems appropriate,

consistent with the Supreme Court's retaining jurisdiction over

such a matter, to find facts or to expedite a final judgment in

connection with such a challenge or request for declaratory

relief.

Section 2512-B.  Optional local tuition grant program.

A school district may, out of funds received from the

Commonwealth for educational purposes, establish a program of

tuition grants to provide for the education of resident students

who wish to attend a nonresident public school or a

participating nonpublic school on a tuition basis. A student who

receives a tuition grant under this section shall be included in

the average daily membership of the student's resident school

district for the purpose of providing basic education funding

and special education funding under Article XXV.

(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. For purposes of this subarticle, a business

firm shall be included in one of the following groups:

(1)  Group 1 includes any business firm that is either

entering the second year of a two-year commitment or applying

for tax credits for a contribution to an educational

improvement organization that is also a school district

foundation, public school foundation, charter school

foundation or cyber charter school foundation.

(2)  Group 2 includes any business firm that is renewing

a two-year commitment that was fulfilled in the most recent

fiscal year or is applying for tax credits for a contribution

to a prekindergarten scholarship organization in the same

amount that it had contributed in the most recent fiscal

year.

(3)  Group 3 includes any business firm other than a

business firm in Group 1 or Group 2.

"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 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 moneys 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, $12,000 for each eligible

student, eligible prekindergarten student and dependent

member of a household.

(2)  Beginning July 1, 2012, the Department of Community

and Economic Development shall annually adjust the income

allowance amounts under paragraph (1) to reflect any upward

changes in the Consumer Price Index for All Urban Consumers

for the Pennsylvania, New Jersey, Delaware and Maryland area

in the preceding 12 months and shall immediately submit the

adjusted amounts to the Legislative Reference Bureau for

publication as a notice in the Pennsylvania Bulletin.

"Innovative educational program."  An advanced academic or

similar program that is not part of the regular academic program

of a public school but that enhances the curriculum or academic

program of the public school or provides prekindergarten

programs to public school students.

"Maximum annual household income."