AN ACT

 

1Providing for school-to-work pilot programs; establishing the
2CareerBound Program; providing for a tax credit; and imposing
3powers and duties on the Department of Labor and Industry.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1.  Short title.

7This act shall be known and may be cited as the CareerBound
8Act.

9Section 2. Definitions.

10The following words and phrases when used in this act shall
11have the meanings given to them in this section unless the
12context clearly indicates otherwise:

13"Board."  As defined in section 103 of the act of December
1418, 2001 (P.L.949, No.114), known as the Workforce Development
15Act.

16"Business partner." A business entity authorized to do

1business in this Commonwealth that employs individuals in a
2high-priority occupation.

3"CareerBound." The pilot program established in section 3.

4"Department." The Department of Labor and Industry of the
5Commonwealth.

6"High-priority occupation." An occupation which is included
7in the list issued by the Department of Labor and Industry under
8section 1302(e) of the act of December 18, 2001 (P.L.949,
9No.114), known as the Workforce Development Act.

10"Institutions of higher education." The term includes any of
11the following:

12(1) A community college operating under Article XIX-A of
13the act of March 10, 1949 (P.L.30, No.14), known as the
14Public School Code of 1949.

15(2) A university within the State System of Higher
16Education.

17(3) The Pennsylvania State University.

18(4) The University of Pittsburgh.

19(5) Temple University.

20(6) Lincoln University.

21(7) Any other institution that the Commonwealth
22designates as a state-related institution of higher
23education.

24(8) The Thaddeus Stevens College of Technology.

25(9) Any accredited private or independent college or
26university.

27"Local workforce investment board."  As defined in section
28103 of the act of December 18, 2001 (P.L.949, No.114), known as
29the Workforce Development Act.

30"Participating agencies." The term includes the Department

1of Education and the Department of Community and Economic
2Development of the Commonwealth.

3"Pass-through entity."  A partnership as defined in section
4301(n.0) of the act of March 4, 1971 (P.L.6, No.2), known as the
5Tax Reform Code of 1971, a single-member limited liability
6company treated as a disregarded entity for Federal income tax
7purposes or a Pennsylvania S corporation as defined in section
8301(n.1) of the Tax Reform Code of 1971.

9"Payment." An amount of money paid in consideration for a
10tax credit under section 7(d).

11"Program partners."  All entities that participate in a
12school-to-work pilot program.

13"Replacement school-to-work pilot program." A school-to-work
14pilot program which has been approved to participate in
15CareerBound under section 5(e).

16"School partner." A school district, vocational-technical
17school, intermediate unit, charter school or cyber charter
18school.

19"School-to-work pilot program." A pilot program which has
20been approved to participate in CareerBound.

21"Soft skills." The workplace interpersonal and professional
22skills that are necessary for an employee to adhere to generally
23accepted workplace behaviors. The term includes work ethic,
24promptness, integrity and respect for others.

25"Tax liability." An amount of tax due under Article III, IV,
26VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,
27No.2), known as the Tax Reform Code of 1971, or under Article
28XVI of the act of May 17, 1921 (P.L.682, No.284), known as The
29Insurance Company Law of 1921.

30"Taxpayer." A business entity authorized to do business in

1this Commonwealth and subject to taxes imposed under Article
2III, IV, VI, VII, VIII, IX or XV of the act of March 4, 1971
3(P.L.6, No.2), known as the Tax Reform Code of 1971 or a tax
4under Article XVI of the act of May 17, 1921 (P.L.682, No.284),
5known as The Insurance Company Law of 1921. The term includes a
6pass-through entity.

7"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
8known as the Tax Reform Code of 1971.

9"Workforce Development Act." The act of December 18, 2001
10(P.L.949, No.114), known as the Workforce Development Act.

11Section 3. CareerBound Program.

12(a) Establishment.--There is established within the
13department a pilot program to be known as CareerBound.

14(b) Administration.--The program shall be administered by
15the department to empower local workforce investment boards,
16school partners and business partners to collaboratively develop
17innovative school-to-work pilot programs to do all the
18following:

19(1) Provide students with career exploration
20opportunities and exposure to high-priority occupations which
21will enable each student to make an informed decision on his
22or her future career path.

23(2) Provide local workforce investment boards with the
24funding and support necessary to convene school partners and 
25business partners to implement innovative school-to-work
26pilot programs.

27(3) Provide business partners with an opportunity to 
28participate in a tax credit program and to develop
29collaborative relationships with school partners and local
30workforce investment boards so that the next generation of

1workers are well-equipped to meet the demand for high-
2priority occupations.

3(4) Provide school partners with the funds and framework
4to deliver to students a relevant and rigorous curriculum
5which prepares students for high-priority occupations.

6(5) Provide program partners with informational
7resources to help them conduct successful school-to-work
8pilot programs.

9Section 4.  School-to-work pilot program requirements.

10(a)  Curriculum.--The curriculum for a school-to-work pilot
11program must include one or more of the following components:

12(1) Early exposure. Curriculum approved under this
13paragraph must provide students with a broad orientation to
14the tools, processes and procedures used by individuals
15employed in a high-priority occupation. Activities may
16include student visits to a business partner's facilities for
17company tours, demonstrations, field trips and lessons to
18familiarize students with the basic features of a high-
19priority occupation.

20(2)  Practical exposure. Curriculum approved under this
21paragraph must provide students with a detailed understanding
22of the tools, processes and procedures used by individuals
23employed in a high-priority occupation. Activities may
24include extended visits by students to a business partner's
25facilities for demonstrations, job shadowing and hands-on
26experience with the duties and skills necessary to be
27employed in a high-priority occupation.

28(3)  Extended exposure. Curriculum approved under this
29paragraph must provide students with an in-depth
30understanding of the tools, processes and procedures used by

1individuals employed in a high-priority occupation.
2Activities may include apprenticeships, internships and
3cooperative learning opportunities to give the student
4practical knowledge which could be directly applicable to a
5high-priority occupation.

6(b)  Occupational focus.--Curricula approved under subsection
7(a) must be focused on providing students with exposure to high-
8priority occupations which are either designated as high-
9priority occupations Statewide or within the region served by
10the local workforce investment board.

11(c) Soft skills development.--Curricula approved under
12subsection (a) must include some instruction on the development
13of soft skills.

14Section 5. Application and approval process.

15(a) Application.--A local workforce investment board may
16submit an application to the department requesting approval for
17participation in CareerBound.

18(b) Application requirements.--A completed application must
19describe the proposed school-to-work pilot program on a form and
20in a manner prescribed by the department. An application must
21include all of the following:

22(1) A list of program partners, including a declaration
23of interest by at least one school partner and at least one
24business partner. The program partners may include 
25institutions of higher education, nonprofit business-support
26entities and economic development agencies.

27(2) A description of proposed curriculum, encompassing
28at least one component listed in section 4(a)(1), (2) and
29(3).

30(3) A projection of costs associated with the proposed

1school-to-work pilot program, including an enumeration of any
2opportunities to leverage other funding and programming
3resources.

4(4) A list of high-priority occupations which will be
5the focus of the proposed school-to-work pilot program.

6(5) Documentation of any commitment by a business
7partner that plans to make payment to the CareerBound program
8and will seek to utilize the tax credit provisions in section
97(a).

10(6) A start date for the proposed school-to-work pilot
11program.

12(7) A list of clear objectives and measurable goals that
13the proposed school-to-work pilot program will seek to
14achieve.

15(8) Documentation of an agreement among the program
16partners describing the role of each program partner within
17the proposed school-to-work pilot program and the
18expectations that each program partner agrees to fulfill.

19(c) Approval process.--

20(1) The department, in consultation with participating
21agencies and the board as needed, shall approve up to seven
22school-to-work pilot programs for participation in
23CareerBound.

24(2) Priority must be given to a proposed school-to-work
25pilot program demonstrating one or more of the following
26characteristics:

27(i) substantial program integration across
28educational levels, including use of multiple curricula
29components listed in section 4(a);

30(ii) an ability to leverage other funding and

1programming resources; or

2(iii) a commitment from a business partner to
3provide preferred interviews to students completing the
4school-to-work pilot program.

5(3) Additional consideration must be given to a proposed
6school-to-work pilot program which includes multiple business
7partners or multiple school partners or which targets middle 
8school or early high school students for early exposure 
9activities <-or which is integrated into a school partner's 
10curriculum as a credit course.

11(d) Contractual relationship.--Within 30 days of the
12completion of the approval process, the department shall enter
13into a contract with all local workforce investment boards that 
14submitted an application that was approved. The contract shall
15require the signatories to provide the services described in the
16approved school-to-work pilot program from funds appropriated or
17distributed for this purpose or from funds identified by the
18participating agencies for this purpose under the general
19appropriation act.

20(e) Termination and replacement.--The department, in
21consultation with participating agencies and the board as
22needed, may terminate a school-to-work pilot program for failure
23to comply with program requirements. Consistent with the
24requirements in subsection (c), a replacement school-to-work
25pilot program may be approved.

26(f) Expiration.--A school-to-work pilot program shall expire
27at the end of the fourth school year of operation.

28Section 6.  Program operation.

29(a) Cooperative management.--In collaboration with the
30participating agencies and the board, the department shall

1manage the operation of CareerBound, establish an application
2process, enumerate outcome-based metrics by which school-to-work 
3pilot programs will be evaluated in the reports under section 9
4and institute such guidelines and procedures as are necessary to
5implement CareerBound. The guidelines must enumerate allowed and
6disallowed expenses, provided that administrative expenses over
75% shall be disallowed.

8(a.1) Informational resources.--In collaboration with the
9participating agencies and the board, the department shall
10provide informational resources to help program partners conduct
11successful school-to-work pilot programs.

12(b) Distribution.--The department, in consultation with
13participating agencies and the board as needed, shall determine
14the distribution of available funds from the restricted account
15in section 7(e) among the school-to-work pilot programs, 
16provided that a school-to-work pilot program receives no less 
17than 50% of the funds designated to it under section 7(c.1).

18Section 7.  Application for tax credit.

19(a)  Business partner.--A taxpayer that is a business partner
20may apply to the Department of Community and Economic
21Development for a tax credit. An application under this
22subsection must include the amount of tax credit requested by
23the taxpayer and must be made within 30 days of the taxpayer's
24signing of the contract under section 5(d).

25(b) Other taxpayers.--A taxpayer that is not a business
26partner may apply to the Department of Community and Economic
27Development for a tax credit. An application under this
28subsection must include the amount of tax credit requested by
29the taxpayer.

30(c)  Availability of tax credits.--The following shall apply:

1(1) For taxpayers that are business partners applying
2for a tax credit under subsection (a), tax credits under this
3article shall be made available by the Department of
4Community and Economic Development on a first-come, first-
5served basis within the limitation established under
6subsection (g). The availability of tax credits under this 
7paragraph shall expire 90 days after completion of the 
8approval process under section 5(c).

9(2) Tax credits remaining after the allocation under
10paragraph (1) shall be made available to all other taxpayers
11by the Department of Community and Economic Development on a
12first-come, first-served basis within the limitation
13established under subsection (g).

14(c.1) Designation by taxpayer.--A taxpayer applying for a
15tax credit under subsection (a) or (b) may designate a school-
16to-work pilot program to receive funds under section 6(b).

17(d)  Payments.--A taxpayer that is approved to receive a tax
18credit under subsection (a) or (b) shall make payment to the
19Department of Community and Economic Development in the amount
20approved by the Department of Community and Economic
21Development. The payment shall be made in the manner prescribed
22by the Department of Community and Economic Development.

23(e) Restricted account.--The Department of Community and
24Economic Development shall deposit all payments made pursuant to
25subsection (d) into a restricted account for distribution to
26school-to-work pilot programs according to section 6(b).

27(f) Tax credit certificate.--The following shall apply:

28(1) Upon receipt of payment under subsection (d), the
29Department of Community and Economic Development shall issue
30to the taxpayer a tax credit certificate equal to the total

1tax credits approved for the taxpayer. For a taxpayer that is
2a business partner applying under subsection (a), the tax
3credit amount must be equal to 90% of the amount paid in
4subsection (d). For a taxpayer applying under subsection (b),
5the tax credit amount must be equal to 75% of the amount paid
6in subsection (d).

7(2) The tax credit certificate must state:

8(i) The amount of tax credits that the taxpayer may
9claim.

10(ii) The tax years in which the tax credits may
11first be utilized by the taxpayer.

12(iii) A penalty or other remedy for noncompliance.

13(iv) The procedure to be used for transferring the
14tax credits to another taxpayer.

15(v) Other requirements that the Department of
16Community and Economic Development and Department of
17Revenue consider to be necessary.

18(g) Amount.--

19(1) The total aggregate amount of all tax credits issued
20under this act may not exceed $10,000,000.

21(2) The total amount of tax credits issued to a taxpayer
22under this act may not exceed $500,000.

23Section 8. Carryover, carryback, refund and assignment.

24(a) Carryover.--If the taxpayer cannot use the entire amount
25of the tax credit for the taxable year in which the taxpayer is
26eligible for the credit, the excess may be carried over to
27succeeding taxable years and used as a credit against the
28taxpayer's tax liability for those taxable years. Each time that
29the tax credit is carried over to a succeeding taxable year it
30shall be reduced by the amount of tax credits claimed during the

1immediately preceding taxable year. The tax credits awarded 
2under this act may not be utilized for tax years beginning after 
3December 31, 2018.

4(b) Carryback or refund.--A taxpayer may not be entitled to
5carry back or obtain a refund of an unused tax credit.

6(c) Sale or assignment.--A taxpayer, upon application to and
7approval by the Department of Revenue, may sell or assign, in
8whole or in part, a tax credit granted to the taxpayer under
9this act if the taxpayer does not have a tax liability against
10which the tax credit may be applied in a taxable year in which
11the tax credit is permitted to be claimed. The Department of
12Revenue shall establish guidelines for the approval of an
13application under this subsection. Before an application is
14approved, the Department of Revenue shall make a finding that
15the taxpayer and its assignee have filed the required State tax
16reports and returns for the taxable years and paid any balance
17of State tax due as determined by the Department of Revenue.

18(d) Purchaser and assignee.--The purchaser or assignee of a
19tax credit under subsection (c) shall immediately claim the
20credit against its tax liability in the taxable year in which
21the purchase or assignment is made. The purchaser or assignee
22may not carry back, carry forward or obtain a refund of or sell
23or assign the tax credit. The purchaser or assignee shall notify
24the Department of Revenue of the seller or assignor of the tax
25credit in compliance with procedures specified by the Department
26of Revenue.

27Section 9. Annual and final reports.

28(a) Annual reports.--Within 60 days of the end of a school
29year in which a school-to-work pilot program is in operation,
30the department, participating agencies and the board shall

1jointly submit a report to the Governor, the Auditor General,
2the chairman and minority chairman of the Appropriations
3Committee of the Senate, the chairman and minority chairman of
4the Education Committee of the Senate, the chairman and minority
5chairman of the Labor and Industry Committee of the Senate, the
6chairman and minority chairman of the Appropriations Committee
7of the House of Representatives, the chairman and minority
8chairman of the Education Committee of the House of
9Representatives and the chairman and minority chairman of the
10Labor and Industry Committee of the House of Representatives
11regarding the implementation of CareerBound and the school-to-
12work pilot programs over the previous school year.

13(b) Final report.--Within six months of the expiration of
14the school-to-work pilot programs according to section 5(f), the
15department, participating agencies and the board shall jointly
16submit a report to the the Governor, the Auditor General, the
17chairman and minority chairman of the Appropriations Committee
18of the Senate, the chairman and minority chairman of the
19Education Committee of the Senate, the chairman and minority
20chairman of the Labor and Industry Committee of the Senate, the
21chairman and minority chairman of the Appropriations Committee
22of the House of Representatives, the chairman and minority
23chairman of the Education Committee of the House of
24Representatives and the chairman and minority chairman of the
25Labor and Industry Committee of the House of Representatives
26regarding the implementation of CareerBound and the school-to-
27work pilot programs.

28(c) Report contents.--In addition to information or analysis
29required by the department, in consultation with participating
30agencies and the board as needed, the interim and final reports

1must include information about each school-to-work pilot
2program, including whether each school-to-work pilot program 
3achieved the clear objectives and measurable goals proposed 
4under section 5(b)(7), an analysis of each school-to-work pilot 
5program according to the outcome-based metrics enumerated by the 
6department in section 6(a), the number of participating students
7and the amount spent. The reports must identify best practices 
8observed from among the most successful school-to-work programs.

9Section 10. Effective date.

10This act shall take effect immediately.