PRINTER'S NO. 1319
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1015
Session of
2022
INTRODUCED BY AUMENT, CORMAN, MARTIN, PHILLIPS-HILL, STEFANO AND
J. WARD, JANUARY 11, 2022
REFERRED TO EDUCATION, JANUARY 11, 2022
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," establishing the Pandemic Education
Savings Account Grant Program and the COVID-State Fiscal
Recovery Restricted Account; and imposing powers and duties
on the Department of Education.
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 XXVI-L
PANDEMIC EDUCATION SAVINGS ACCOUNT GRANT PROGRAM
Section 2601-L. Scope of article.
This article relates to the Pandemic Education Savings
Account Grant Program.
Section 2602-L. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Account." A spending account established and administered
by the department 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 2605-L.
"Applicant." A parent of a school-age child who applies for
an account under section 2603-L(b) on behalf of the school-age
child.
"COVID-19." The coronavirus disease 2019, an infectious
disease caused by severe acute respiratory syndrome coronavirus
2 that was first identified during December 2019 in Wuhan,
China.
"COVID-19 incongruence." School district protocols for
COVID-19, including masking requirements, the separation or
isolation of students, or COVID-19 testing requirements, that a
parent or guardian finds to have the effect of substantially
interfering with a student's educational performance,
opportunities or benefits.
"Department." The Department of Education of the
Commonwealth.
"Eligible student." A school-age child whose parent has
entered into an agreement under section 2603-L(e) on behalf of
the school-age child.
"Institution of higher education." As defined under section
118(c).
"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
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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 school-
age child; or
(ii) keeps in the individual's home a school-age
child and supports the school-age child gratis as if the
school-age child were a lineal descendant of the
individual.
"Participating entity."
(1) Any of the following where a school-age child
receives instruction:
(i) A public or 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 a 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." Pandemic Education Savings Account Grant Program
established under section 2603-L(a).
"Public school." A school district, charter school, cyber
charter school, regional charter school, intermediate unit or
area career and technical school.
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"Resident school district." The school district in which a
school-age child resides.
"School-age child." A child who is enrolled in kindergarten
through grade 12 and resides in this Commonwealth.
"Student with a disability." As defined in 22 Pa. Code ยง
14.101 (relating to definitions).
Section 2603-L. Pandemic Education Savings Account Grant
Program.
(a) Establishment.--The Pandemic Education Savings Account
Grant Program is established in the department.
(b) Eligibility.--A parent of a school-age child may apply
for an account for the school-age child if all of the following
requirements are met:
(1) The family income is no greater than 185% of the
Federal poverty level.
(2) The school-age child attends a public school where
the school-age child is subject to COVID-19 incongruence.
(c) Application period.--The department shall approve
applications for accounts on a first-come, first-served basis
provided that money remains available for that purpose.
(d) Application form.--The department shall develop a form
for the application which may not exceed one page that measures
8.5 inches by 11 inches and may be filled out and submitted
through the department's publicly accessible Internet website.
(e) Review and approval.--
(1) The department shall review a timely submitted
application to determine if the applicant meets the
requirements under subsection (c). If the requirements have
been met, the department shall approve the application and
enter into an agreement with the applicant.
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(2) The agreement shall provide that:
(i) The parent will receive a grant on behalf of the
school-age child in the form of money deposited under
section 2604-L in the account.
(ii) The money in the account may be expended only
as authorized under this article.
(f) Account.--If an agreement is entered into under
subsection (e), an account shall be established in the
department. The account shall be administered by the Secretary
of Education in accordance with this article.
(g) Term of agreement.--Except as otherwise provided under
this article, an agreement entered into under subsection (e)
shall be valid for up to two years following the high school
graduation of the school-age child.
(h) Termination.--
(1) Notwithstanding subsection (i), an agreement entered
into under subsection (e) may be terminated early in
accordance with this section.
(2) If an agreement is terminated early by the parent or
department, all available money in the account shall revert
to the Commonwealth and be used in the resident school
district.
(i) Automatic termination.--
(1) An agreement entered into under subsection (e) shall
terminate automatically if the school-age child no longer
resides in this Commonwealth.
(2) The parent shall notify the department if the
school-age child no longer resides in this Commonwealth
within 15 days of the change of residence. After the parent
has notified the department, money remaining in the account
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shall revert to the Commonwealth and be used by the resident
school district prior to the change of residence.
(j) Number.--A parent may enter into a separate agreement
under subsection (e) for each school-age child of the parent.
Not more than one account may be established for a school-age
child.
(k) Explanation.--After entering into an agreement under
subsection (e), the department shall provide the parent with a
written explanation of the authorized uses of the money in the
account and the responsibilities of the parent and the
department under the agreement and this article.
(l) Application notification.--The department shall notify
parents and school districts of approved applications within 30
days of receiving the timely filed applications.
Section 2604-L. Amount.
(a) General rule.--If a parent of a school-age child enters
into an agreement under section 2603-L with the department for a
school year, the Secretary of Education shall approve a $7,000
grant for that school year in the eligible student's account,
and the department shall transfer quarterly payments for a total
of $7,000 from the COVID-State Fiscal Recovery Restricted
Account into the eligible student's account.
(b) Proof of purchase.--A parent of a school-age child who
enters into an agreement under section 2603-L with the
department shall provide proof of purchase of a qualified
education expense under section 2605-L to the department within
30 days of the date of the purchase. Failure to provide the
proof of purchase required under this subsection may result in a
delay of a payment transfer under subsection (a) or termination
of participation in the program.
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(c) Disposition.--
(1) Money remaining in an account at the end of a school
year may be carried forward to future school years if the
eligible student remains engaged with a participating entity.
(2) Subject to paragraph (3), money remaining in an
account when an agreement entered into under section 2603-L
is terminated shall revert to the resident school district.
(3) Money remaining in an account after the eligible
student graduates from high school may be used for qualified
education expenses under section 2605-L for up to two years
after the date of high school graduation of the eligible
student. After the two-year time period under this paragraph
has expired, money remaining in the account shall revert to
the General Fund.
Section 2605-L. Qualified education expenses.
(a) General rule.--Money deposited into an account may be
used to pay for any of the following expenses incurred by or
associated with the eligible student:
(1) COVID-19 mitigation supplies, including masks, hand
sanitizer and other resources deemed effective at preventing
the spread of coronavirus.
(2) Tuition and fees charged by a participating entity.
(3) Textbooks or uniforms required by a participating
entity.
(4) Fees for tutoring or other teaching services
provided by a participating entity.
(5) 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.
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(6) Fees for purchasing curriculum or instructional
materials required to administer curriculum.
(7) If the eligible student is a student with a
disability, fees for special instruction or special services
provided to the eligible student, including occupational,
physical, speech and behavioral therapies.
(8) Computer hardware and computer software associated
with instruction or any of the qualifying expenses described
in this subsection.
(9) Fees for counseling services related to academic
achievement or social and emotional development.
(10) Expenses for transportation to a participation
entity.
(11) Other valid educational expenses approved by the
department.
(b) Assistance.--The department shall provide assistance to
a parent of a school-age child who entered into an agreement
under section 2603-L with the department in making decisions
regarding the use of the account and the qualified education
expenses authorized under subsection (a), including, but not
limited to, which potential services and content may best meet
the needs of the school-age child.
(c) Prohibitions.--A participating entity that receives a
payment for qualified education expenses authorized under
subsection (a) may not:
(1) Refund all or 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.
(d) Refund.--A participating entity shall deposit a refund
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for an item that is being returned or an item or service that
has not been provided directly to the account of the eligible
student from which payment for the item or service was made.
(e) Payment system.--
(1) The department 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 department determines to be commercially
viable and cost effective.
(2) The department may contract with a private entity to
develop the payment system.
(3) The department may not adopt a system that requires
a parent to be reimbursed for out-of-pocket expenses.
(f) Source and amount of payment.--
(1) Accounts shall be funded by the COVID-State Fiscal
Recovery Restricted Account, which is established in the
State Treasury.
(2) Not more than $500,000,000 from money received by
the Commonwealth from the American Rescue Plan Act of 2021
(Public Law 117-2, 135 Stat. 4) may be transferred to the
COVID-State Fiscal Recovery Restricted Account for the
purpose of funding accounts.
(3) An individual may not deposit personal money into or
otherwise make gifts or contributions of private money to an
account.
(4) 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
account.
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Section 2606-L. Audits.
(a) Duty to conduct.--The Auditor General shall annually
conduct an audit of the program to ensure compliance with
section 2605-L.
(b) Penalties.--If the Auditor General determines that money
in an account has been expended for an expense other than a
qualified education expense under section 2605-L(a), the Auditor
General may:
(1) Freeze or dissolve the account, subject to
regulations adopted by the department providing for notice to
the parent of the action and opportunity to respond to the
notice.
(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 on the parent equal to 100%
of the amount in the account prior to the unauthorized use.
(4) Disqualify the parent from future participation in
the program.
Section 2607-L. Accountability standards for participating
entities.
(a) Duties.--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 stated in
section 1521 of this act and section 101 of the Civil Rights
Act of 1991 (Public Law 102-166, 42 U.S.C. ยง 1981).
(4) Comply with the provisions of sections 111 and
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111.1.
(b) Financial accountability standards.--A participating
entity shall provide parents of eligible students with a receipt
for all qualifying expenses incurred by the participating
entity.
(c) Academic accountability standards.--
(1) A parent of an eligible student shall notify the
department of the eligible student's graduation from high
school.
(2) The department shall comply with all student privacy
laws, including the Family Educational Rights and Privacy Act
of 1974 (Public Law 90-247, 20 U.S.C. ยง 1232g).
(d) Participating entity autonomy.--
(1) A participating entity shall be autonomous and shall
not be deemed an agent of the department or the Commonwealth
when acting in accordance with this article.
(2) The department or any other State agency may not
regulate the educational program of a participating entity
that accepts money from an 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 a school district to impose
additional regulations on a participating entity beyond those
necessary to enforce the requirements of the program.
Section 2608-L. Bar of certain participating entities.
(a) General rule.--The department may bar a participating
entity from further 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 2607-L; or
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(2) failed to provide an eligible student with the
educational services funded by the account of the eligible
student.
(b) Notice.--If the department bars a participating entity
from further participation in the program, the department shall
post the decision on the department's publicly accessible
Internet website.
(c) Appeal.--A participating entity may appeal the
department's decision under this section.
Section 2609-L. Duties of resident school districts.
A resident school district shall notify eligible students and
their parents about the program and provide information about
participating entities.
Section 2610-L. Legal proceedings.
(a) Liability.--No liability shall arise on the part of the
department, the Commonwealth, a public school or school district
based on the award or use of an account under this article.
(b) Challenges.--
(1) If a provision of this article is challenged in a
State court as violating the Constitution of the United
States, parents of eligible students and students who
previously had an account shall be permitted to intervene as
of right in the lawsuit for the purposes of defending the
program's constitutionality.
(2) For the purposes of judicial administration, a court
may require that parents file a joint brief but may not
require parents to join a brief filed on behalf of a named
State defendant.
(c) Severability.--If any provision of this article or the
application thereof to any person or circumstance is held
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invalid, the invalidity shall not affect other provisions or
applications of this article which can be given effect without
the invalid provision or application. The provisions of this
article are declared to be severable.
Section 2611-L. Listing of participating entities.
The department shall annually post on the department's
publicly accessible Internet website a listing of all
participating entities.
Section 2612-L. Guidelines.
The department shall develop guidelines as necessary for the
administration of this article within 10 days of the effective
date of this section.
Section 2. This act shall take effect immediately.
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