Regular Session 2019-2020 House Bill 1296 P.N. 1563

PRINTER'S NO. 1563

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1296

Session of

2019

INTRODUCED BY LEWIS, MURT, BARRAR, READSHAW, ROTHMAN, RAPP,

BERNSTINE, SAYLOR, RYAN, HELM, JONES, MASSER, WEBSTER,

ULLMAN, EVERETT, SCHMITT, BOROWICZ, NELSON AND T. DAVIS,

APRIL 25, 2019

REFERRED TO COMMITTEE ON EDUCATION, APRIL 25, 2019

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 military education

scholarship account.

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 XX-I

MILITARY EDUCATION SCHOLARSHIP ACCOUNT

Section 2001-I. Short title.

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

Education Scholarship Account Act.

Section 2002-I. Definitions.

The following words and phrases when used in this article

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

context clearly indicates otherwise:

"Applicant." A parent who applies for a military education

scholarship account under section 2003-I(b) on behalf of an

eligible student.

"Department." The Department of Education of the

Commonwealth.

"Eligible student." A school-age child who meets the

requirements under section 2003-I(b) and whose parent has

entered into an agreement under section 2003-I(d).

"Institution of higher education." As defined under section

118(c).

"Military education scholarship account." A spending account

established and administered by the State Treasury, and

controlled by a parent, for a school-age child with money that

may be spent on a qualified education expense as provided for

under section 2005-I.

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

located in this Commonwealth where a Commonwealth resident may

legally fulfill the compulsory attendance requirements of this

act, that complies with section 1521 and meets the applicable

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

Law 88-352, 78 Stat. 241).

"Parent." An individual who:

(1) is a resident of this Commonwealth; and

(2) either:

(i) has legal custody or guardianship of a student;

(ii) keeps in the individual's home a student and

supports the student gratis as if the student were a

lineal descendant of the individual.

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"Participating entity."

(1) Any of the following where a school-age child

receives instruction under section 2003-I(d):

(i) A nonpublic school for kindergarten through

grade 12, or a combination of grades.

(ii) An institution of higher education.

(iii) A distance learning program that is not

offered by a public school or the department.

(iv) A tutor who is a teacher licensed in any state,

has taught at an eligible postsecondary institution and

is a subject matter expert or a tutor or tutoring agency

otherwise approved by the department.

(2) The term does not include a parent of a school-age

child to the extent that the parent provides educational

services directly to the school-age child.

"Program." The Military Education Scholarship Account

Program established under section 2003-I(a).

"Public school." A school district, charter school, cyber

charter school, regional charter school, intermediate unit or

area vocational-technical school.

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

school-age child resides.

"School-age child." A child enrolled in kindergarten through

grade 12 and who resides in this Commonwealth.

"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(a) (relating to child

with a disability).

Section 2003-I. Establishment, application and agreement.

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(a) Establishment.--The Military Education Scholarship

Account Program is established as a program of the department.

(b) Individuals who may apply.--A parent may apply for a

military education scholarship account for a school-age child

who:

(1) is a child of a parent who is on full-time active-

duty status in the armed forces of the United States,

including members of the National Guard and reserve on active

duty orders under 10 U.S.C. §§ 12301 (relating to reserve

components generally) and 12401 et seq. (relating to Army and

Air National Guard of the United States: status) or was

killed in the line of duty; or

(2) participated in the program in the prior year and is

renewing an agreement under subsection (i) by filing an

application with the department, in a manner and on a form

provided by the department.

measures 8.5 inches by 11 inches and may be filled out and

submitted through the department's publicly accessible Internet

website.

(d) Review and approval.--The department shall review the

application to determine if the applicant meets the requirements

under subsection (b). If the requirements have been met, the

department shall approve the application and enter into an

agreement with the applicant. The agreement shall provide that:

(1) The school-age child withdraw from public school and

receive instruction in this Commonwealth from a participating

entity for the school year for which the agreement applies.

(2) The school-age child not accept a scholarship in the

educational improvement tax credit program under Article XX-B

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or the opportunity scholarship tax credit program under

Article XX-B.

(3) The parent will receive a grant on behalf of the

school-age child, in the form of money deposited under

section 2004-I in the military education scholarship account.

(4) The money in the military education scholarship

account may be expended only as authorized under this

article.

(e) Military education scholarship account.--

(1) If an agreement is entered into under subsection

(d), a military education scholarship account shall be

established. The military education scholarship account shall

be administered by the State Treasury under this article.

(2) Failure of a parent to enter into an agreement under

subsection (d) for a school year shall not preclude the

parent from entering into an agreement for a subsequent

school year if the school-age child is eligible under

subsection (b).

(f) Term of agreement.--Except as otherwise provided under

this article, an agreement entered into under subsection (d)

shall be valid for one school year.

(g) Termination.--

(1) Notwithstanding subsection (h), an agreement entered

into under subsection (d) may be terminated early.

(2) If an agreement is terminated early by either the

parent or the department, all available money in the military

education scholarship account shall revert to the State

Treasury and be used in the resident school district.

(h) Automatic termination.--

(1) An agreement entered into under subsection (d) shall

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terminate automatically if the school-age child no longer

resides in this Commonwealth.

(2) The parent shall notify the department if the child

no longer resides in this Commonwealth within 15 days of the

change of residence. After the child's parent has notified

the department, money remaining in the military education

scholarship account shall revert to the State Treasury and be

used in the resident school district.

(i) Renewal.--

(1) Subject to subsection (l), an agreement entered into

under subsection (d) may be renewed for each school year for

the school-age child.

(2) Failure of a parent to renew an agreement for a

school year shall not preclude a parent from renewing the

agreement for a subsequent school year if the school-age

child remains eligible under subsection (b).

(j) Number.--A parent may enter into separate agreements

under subsection (d) for each school-age child of the parent.

Not more than one military education scholarship account may be

established for a school-age child.

(k) Explanation.--Upon entering into an agreement under

subsection (d) or renewing an agreement under subsection (i),

the department shall provide the parent with a written

explanation of the authorized uses of the money in the military

education scholarship account and the responsibilities of the

parent, the department and the State Treasury under the

agreement and this article.

(l) Application and renewal period.--

(1) A parent may apply or seek renewal between January 1

and April 1 for the following school year.

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(2) The department shall notify parents and school

districts of approved applications by April 30.

Section 2004-I. Amount.

(a) General rule.--If a parent of an eligible student enters

into or renews an agreement under section 2003-I with the

department for a school year, the Secretary of Education shall

deposit a grant for that school year in the military education

scholarship account of the eligible student. The amount of the

grant shall be as follows:

(1) For an eligible student who does not have a

disability, the grant amount shall be equal to the State

revenue received by school districts minus the State revenue

received for transportation divided by the State total

average daily membership.

(2) For an eligible student with a disability, the grant

amount shall be based on the category of disability by which

the resident school district is required to categorize the

eligible student for the purpose of the report required under

section 1372(8) as follows:

(i) For an eligible student in Category 1, multiply

the grant amount in paragraph (1) by 1.51.

(ii) For an eligible student in Category 2, multiply

the grant amount in paragraph (1) by 3.77.

(iii) For an eligible student in Category 3A and 3B,

multiply the grant amount in paragraph (1) by 7.46.

(3) For an eligible student receiving a grant, the

amount of basic education funding and other subsidies paid by

the department to the resident school district shall be

reduced by the grant amount calculated for the student.

(4) If a school district's basic education funding and

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other subsidies are reduced under this section, the resident

school district shall include the grant recipient in the

resident school district's average daily membership for the

purpose of calculating school subsidies.

(b) Installments.--The State Treasury shall deposit the

money for each grant in quarterly installments under a schedule

determined by the State Treasury.

remaining in a military education scholarship account:

(1) For money remaining in a military education

scholarship account at the end of a school year, the money

may be carried forward to any other school year of the

eligible student if the agreement entered into under section

2003-I(d) is renewed for the other school year.

(2) Subject to paragraph (3), money remaining in a

military education scholarship account when an agreement

entered into under section 2003-I(d) is not renewed or is

terminated shall revert to the resident school district.

(3) Money remaining in a military education scholarship

account after the school-age child graduates from high school

may be used for qualified education expenses under section

2005-I for up to two years after the date of high school

graduation. After the two-year time period under this

paragraph has expired, money remaining in the military

education scholarship account shall revert to the General

Fund.

Section 2005-I. Qualified education expenses.

(a) General rule.--Money deposited in a military education

scholarship account may be used to pay for any of the following

expenses incurred by or associated with the school-age child:

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(1) Tuition and fees charged by a participating entity.

(2) Textbooks or uniforms required by a participating

entity.

(3) Fees for tutoring or other teaching services

provided by a participating entity.

(4) Fees for a nationally norm-referenced test, advanced

placement or similar examination or standardized examination

required for admission to an institution of higher education,

and career and technical education examination fees.

(5) Fees for purchasing a curriculum or instructional

materials required to administer the curriculum.

(6) If the eligible student is a student with a

disability, fees for special instruction or special services

provided to the eligible student, including, but not limited

to, occupational, physical, speech and behavioral therapies.

(7) Other valid educational expenses approved by the

department.

(b) Prohibitions.--A participating entity that receives a

payment for qualified education expenses authorized under

subsection (a) may not:

(1) Refund a portion of the payment directly to the

parent who made the payment.

(2) Rebate or otherwise directly share a portion of the

payment with the parent who made the payment.

for an item that is being returned or an item or service that

has not been provided directly to the military education

scholarship account of the school-age child from which payment

for the item or service was made.

(d) Payment system.--

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(1) The State Treasury shall develop a system that

enables a parent to pay for services provided by

participating entities under the program by electronic money

transfer, including electronic payment systems or other means

of electronic payment that the State Treasury determines to

be commercially viable and cost effective.

(2) The State Treasury may not adopt a system that

requires a parent to be reimbursed for out-of-pocket

expenses.

(e) Source of payment.--

(1) An individual may not deposit personal money into or

otherwise make gifts or contributions of private money to a

military education scholarship account.

(2) Nothing in this section shall be construed to

prohibit a parent or school-age child from paying for

qualified education expenses from a source other than the

military education scholarship account.

Section 2006-I. Audits and penalties.

(a) Audit.--The State Treasury may provide for audits of a

military education scholarship account as the State Treasury

determines necessary.

(b) Penalties.--If the State Treasury determines that money

in a military education scholarship account has been expended

for an expense other than a qualified education expense under

section 2005-I(a), the State Treasury may do any of the

following:

(1) Freeze or dissolve the military education

scholarship account, subject to regulations adopted by the

State Treasury providing for notice of the action and

opportunity to respond to the notice.

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(2) Refer the matter to the Attorney General or district

attorney of the county in which the parent resides for

investigation and criminal prosecution, if appropriate.

(3) Impose a civil penalty equal to 300% of the amount

in the military education scholarship account prior to the

fraudulent use.

(4) Disqualify the parent from future participation in

the program.

Section 2007-I. Accountability standards for a participating

entity.

(a) General rule.--A participating entity shall:

(1) Comply with all health and safety laws or codes that

apply to the participating entity.

(2) Hold a valid occupancy permit if required by the

municipality in which the participating entity is located.

(3) Comply with the nondiscrimination policies set forth

in section 42 U.S.C. § 1981 (relating to equal rights under

the law) and with section 1521.

(4) Comply with the provisions of sections 111 and

111.1.

(b) Financial accountability standards.--A participating

entity shall:

(1) Provide parents with a receipt for all qualifying

expenses incurred by the participating entity.

(2) File with the department prior to the start of the

school year financial viability documentation which

demonstrates the participating entity's ability to repay

$50,000 or more from the military education scholarship

accounts during the school year. The financial viability

documentation shall include:

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(i) a surety bond payable to the Commonwealth in an

amount equal to the aggregate amount of money from the

military education scholarship accounts expected to be

paid during the school year on behalf of eligible

students admitted at the participating entity; or

(ii) financial information that demonstrates that

the participating entity has the ability to pay an

aggregate amount equal to the amount of money from the

military educational scholarship accounts expected to be

paid during the school year on behalf of eligible

students admitted to the participating entity.

(1) A parent of an eligible student shall ensure that

the department is informed of the eligible student's

graduation from high school.

(2) The department shall:

(i) Ensure compliance with all student privacy laws,

including the Family Educational Rights and Privacy Act

of 1974 (Public Law 90-247, 20 U.S.C. § 1232g).

(ii) Administer an annual parental satisfaction

survey that shall ask parents of eligible students

participating in the program to express:

(A) The parents satisfaction with the program.

(B) The number of years the eligible student has

participated in the program.

or issues that the department determines would elicit

information about the effectiveness of the program.

(d) Participating entity autonomy.--

(1) A participating entity shall be autonomous and may

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not be an agent of the department or the Commonwealth.

(2) The department or any other State agency may not

regulate the educational program of a participating entity

that accepts money from a military education scholarship

account.

(3) The establishment of the program may not be

construed to expand the regulatory authority of the State,

the officers of the State or any school district to impose

any additional regulation of a participating entity beyond

those necessary to enforce the requirements of the program.

Section 2008-I. Bar of certain participating entities.

(a) General rule.--The department may bar a participating

entity from participation in the program if the department

establishes that the participating entity has:

(1) routinely failed to comply with the accountability

standards established in section 2007-I; or

(2) failed to provide an eligible student with the

educational services funded by the eligible student's

military education scholarship account.

(b) Notice.--If the department bars a participating entity

from participation in the program, the department shall post the

decision on the department's publicly accessible Internet

website. A participating entity may appeal the department's

decision under this section.

Section 2009-I. Duties of resident school districts.

(a) School records.--A resident school district shall

provide a participating entity that has admitted an eligible

student participating in the program with a complete copy of the

student's school records immediately upon the student's

enrollment or when services in the participating entity begin,

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subject to the Family Educational Rights and Privacy Act of 1974

(Public Law 90-247, 20 U.S.C. § 1232g).

(b) Transportation.--A resident school district shall

provide transportation for an eligible student to and from the

participating entity under the same conditions as the resident

school district provides transportation of other resident

students to nonpublic schools under section 1361. The resident

school district shall qualify for State transportation

reimbursement for each eligible student transported.

Section 2010-I. Legal proceedings.

(a) Liability.--No liability shall arise on the part of the

agency, the Commonwealth or a public school or school district

based on the award or use of a military education scholarship

account under this article.

(b) Challenges.--If any part of this article is challenged

in a State court as violating either the Constitution of the

United States or the Constitution of Pennsylvania, parents of

eligible students and students who previously had a military

education scholarship account shall be permitted to intervene as

of right in the lawsuit for the purposes of defending the

military education scholarship account program's

constitutionality. For the purposes of judicial administration,

a court may require that all parents file a joint brief but may

not require all parents to join a brief filed on behalf of a

named State defendant.

application thereof to any person or circumstance is held

invalid, the invalidity shall not affect other provisions or

applications of this article which can be given effect without

the invalid provision or application, and to this end the

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provisions of this article are declared to be severable.

Section 2011-I. Listing of participating entities.

The department shall annually post on the department's

publicly accessible Internet website a listing of all

participating entities.

Section 2012-I. Regulations.

The State Treasury and the department shall jointly develop

guidelines as necessary for the administration of this article

within 60 days of the effective date of this section.

Section 2. This act shall take effect in 60 days.

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