PRINTER'S NO. 1667
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1230
Session of
2022
INTRODUCED BY FONTANA, KEARNEY, KANE, STREET, CAPPELLETTI,
SCHWANK, MUTH AND BREWSTER, MAY 23, 2022
REFERRED TO EDUCATION, MAY 23, 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 Nellie Bly
Scholarship Program and the Nellie Bly Scholarship Program
Restricted 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-L
NELLIE BLY SCHOLARSHIP PROGRAM
Section 2001-L. 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:
"Academic year." One complete school year, usually nine
months in length, commencing on or after August 1 of the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
calendar year.
"College completion award." Funding provided by the
department to a community college participating in the program
for wraparound services to scholarship recipients, including the
hiring of college navigators, mental health supports, tutoring
and other services deemed necessary by the community college to
support scholarship recipients' completion of their course of
study.
"Community college." A public college or technical institute
established and operated in accordance with the provisions of
this act by a local sponsor that provides:
(1) a two-year, postsecondary, college-parallel,
terminal-general, terminal-technical, out-of-school youth or
adult education program or any combination of these programs;
or
(2) area career and technical education services and
credit, nonremedial college courses to secondary senior high
school students.
"Cost of attendance." The direct and indirect costs relating
to attendance at an institution, including tuition and fees,
cost of room and board or living expenses, cost of books,
supplies, transportation, loan fees and miscellaneous expenses,
including a reasonable amount for the documented cost of a
personal computer, allowance for child care or other dependent
care, costs related to a disability and reasonable costs for
eligible study-abroad programs.
"Department." The Department of Education of the
Commonwealth.
"Eligible student." An individual who meets the eligibility
criteria stated in section 2006-L.
20220SB1230PN1667 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"FAFSA." The Free Application for Federal Student Aid.
"Financial aid." Funding to help pay for postsecondary
education, including grants, work study, loans and scholarships.
"Full-time enrollment." Enrollment of twelve or more
undergraduate credits in an academic semester or the equivalent.
"Funding award." An award of program funds from the Nellie
Bly Scholarship Program Restricted Account made by the
department to PHEAA to fund scholarship awards.
"Institutional aid." Financial aid offered to an eligible
student directly by an institution which shall include merit
aid, gift aid and athletic awards.
"Participating institution." A community college established
under Article XIX-A or a State-owned university in the
Pennsylvania State System of Higher Education.
"Pell Grant." The Federal Pell Grant or any successor
program to it.
"PHEAA." The Pennsylvania Higher Education Assistance
Agency.
"Private scholarship." Financial aid awards funded by
entities other than the Federal or State government, including
awards by companies, service groups, foundations, organizations
and individuals.
"Program." The Nellie Bly Scholarship Program established
under section 2002-L.
"Program administration agreement." An agreement by and
between the department and PHEAA that specifies the duties and
responsibilities of PHEAA as administrator of the program and
such other terms and conditions deemed necessary by the
department for the administration of the program.
"Program participation agreement." An agreement by and
20220SB1230PN1667 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
between the department and an institution that specifies the
duties of the institution as a participant in the program and
such other terms and conditions deemed necessary by the
department for program participation.
"Promissory note." A legal agreement between a scholarship
recipient and the department detailing the recipient's rights
and responsibilities and terms and conditions for repayment.
"Restricted account." The Nellie Bly Scholarship Program
Restricted Account established under section 2002-L.
"Scholarship agreement." The written agreement between the
department and a scholarship recipient under which a scholarship
award is made.
"Scholarship award." An award of program money made by the
department to an eligible student toward the cost of attendance.
"Scholarship recipient." An eligible student who is awarded
a scholarship award.
Section 2002-L. Nellie Bly Scholarship Program.
(a) Establishment.--The Nellie Bly Scholarship Program is
established in the department.
(b) Nellie Bly Scholarship Program Restricted Account.--
(1) The Nellie Bly Scholarship Program Restricted
Account is established in the State Treasury. The money in
the restricted account is appropriated on a continuing basis
to the department for the purposes specified in this article.
(2) The restricted account shall consist of money
transferred, appropriated or otherwise made available to the
restricted account.
(3) Money in the restricted account shall be allocated
as follows:
(i) The department may use up to 4% of the money in
20220SB1230PN1667 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the restricted account to administer the program, in
cooperation with PHEAA, and to administer the college
completion awards.
(ii) The department may use up to 3% of the money in
the restricted account for college completion awards.
(iii) The remaining money in the restricted account
shall be allocated as a funding award to PHEAA to make
scholarship awards to eligible students.
(c) Condition on use of restricted account.--The allocations
specified in subsection (b) shall be expended only to the extent
money is available in the restricted account.
Section 2003-L. Powers and duties of department.
(a) Program administration.--
(1) The department shall enter into a program
administration agreement with PHEAA.
(2) The department shall develop the form of scholarship
agreement and promissory note to be used when awarding a
scholarship award.
(b) Audits, reviews and data collection.--The department may
conduct such audits, reviews and data collection of the
scholarship awards of PHEAA and the participating institutions
as the department determines to be necessary or appropriate.
(c) Regulations.--The department shall promulgate
regulations as necessary to implement, administer and enforce
this article.
(d) Temporary regulations.--
(1) In order to facilitate the prompt implementation of
this article, the department shall promulgate temporary
regulations that shall expire not later than three years
following the effective date of this section. The temporary
20220SB1230PN1667 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
regulations shall not be subject to:
(i) Sections 201, 202, 203, 204 and 205 of the act
of July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(ii) Section 204(b) of the act of October 15, 1980
(P.L.950, No.164), known as the Commonwealth Attorneys
Act.
(iii) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(2) The department shall transmit the temporary
regulations under paragraph (1) to the Legislative Reference
Bureau for publication in the Pennsylvania Bulletin.
(e) Guidelines.--The department shall develop written
guidelines, in consultation with the participating institutions
and PHEAA, for the implementation of this article.
(f) Annual report to General Assembly.--The department shall
prepare and submit a report to the Governor and the General
Assembly no later than September 30 of each year the funding is
provided under the program. The report shall include the number
of scholarship recipients, programs of study pursued and
graduation rates and award type, disaggregated by institution
and student group, and activities and outcomes conducted in
accordance with the college completion grants.
Section 2004-L. Powers and duties of PHEAA.
(a) Administration of program.--PHEAA shall administer the
program in accordance with the program administration agreement.
(b) Specific powers and duties.--The powers and duties of
PHEAA under the program include the following:
(1) To enter into a program administration agreement
with the department.
20220SB1230PN1667 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(2) To prepare reports and compile program data as
requested by the department in a form and manner as
prescribed by the department.
(3) To perform other duties and responsibilities needed
for the administration of the program as determined by the
department.
Section 2005-L. Duties of participating institutions.
(a) Agreement with department.--An institution shall enter
into a program participation agreement with the department.
(b) Specific powers and duties.--The powers and duties of a
participating institution under the program shall include the
following:
(1) To prepare reports and compile program data as
requested by the department in a form and manner as
prescribed by the department. The Pennsylvania State System
of Higher Education may prepare the reports and compile the
data on behalf of its institutions.
(2) To perform other program participation duties and
responsibilities as determined by the department.
Section 2006-L. Eligible scholarship recipients.
(a) Initial eligibility requirements.--To receive an initial
scholarship award, an individual must meet all of the following
eligibility requirements:
(1) Graduate from high school or earn a high school
equivalency credential or the equivalent.
(2) Receive acceptance and matriculate as a degree-
seeking student at a participating institution.
(3) Be working toward a first undergraduate associate's
degree or a first baccalaureate degree.
(4) Maintain full-time enrollment per semester in an
20220SB1230PN1667 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
undergraduate degree program at a participating institution.
(5) Complete the FAFSA or alternative financial aid form
approved by the department.
(6) Have a household income equal to or less than 400%
of the Federal poverty level for a family of four as stated
in the poverty guidelines issued annually by the United
States Department of Health and Human Services each year.
(7) Maintain standards of academic progress as
determined by regulations of the department.
(b) Renewal eligibility requirements.--To receive a renewal
of an initial scholarship award, an individual shall meet all
the following requirements:
(1) Complete the FAFSA or alternative financial aid form
approved by the department annually.
(2) Have a household income equal to or less than 400%
of the Federal poverty level for a family of four as
specified in the poverty guidelines issued annually by the
United States Department of Health and Human Services.
(3) Maintain full-time enrollment per semester in an
undergraduate associate's degree or baccalaureate degree
program at a participating institution.
(4) Maintain standards of academic progress as
determined by the department in regulations.
(5) Create an account on the CareerLink system prior to
graduation to connect with employment opportunities in
Pennsylvania.
(c) Documentation required.--An eligible student must enter
into a scholarship agreement and promissory note with the
department for each year the student receives a scholarship
award. Each year the eligible student receives a scholarship
20220SB1230PN1667 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
award, the eligible student must reaffirm the intention to
reside in this Commonwealth upon graduation.
(d) Priority.--Eligible students pursuing programs of study
in health care, education and public service shall be given
priority when initial and renewal scholarship awards are made.
(e) Default.--A scholarship recipient shall repay the full
amount of the scholarship award received without interest if the
recipient fails to reside in this Commonwealth for a period of
4.5 months for each semester, or the equivalent the scholarship
recipient received a scholarship award. This requirement shall
commence upon completion of an undergraduate degree program or
upon termination of enrollment at a participating institution,
whichever occurs first. If a scholarship recipient transfers
from one participating institution to another participating
institution, the transfer shall not be considered as a
termination of enrollment.
(f) Deferral of residency requirement.--Notwithstanding
subsection (e), the department may defer the Commonwealth
residency requirement for an eligible student under the
following circumstances:
(1) Full-time enrollment in a baccalaureate degree
program or a graduate degree program within six months of
receipt of an undergraduate degree from a participating
institution. The recipient shall provide PHEAA with
documentation of the student's continual status as a graduate
student on a half-time basis.
(2) Other extenuating circumstances as determined by the
Secretary of Education.
(g) Notice of change to department.--A scholarship recipient
shall inform the department of a change in the recipient's
20220SB1230PN1667 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
permanent address within 30 days of the effective date of the
change.
(h) Forgiveness of repayment.--Repayment shall not be
required under the following circumstances:
(1) The scholarship recipient enlists in the Armed
Forces or National Guard.
(2) The scholarship recipient is deceased or is
permanently and totally disabled.
(3) Other extenuating circumstances as determined by the
Secretary of Education.
Section 2007-L. Refund of scholarship award by institution.
A scholarship award to an eligible student who disenrolls
during the participating institution's full refund drop period
shall be refunded by the institution to PHEAA no later than the
beginning of the academic year following the academic year in
which the eligible student was enrolled.
Section 2008-L. Need-based eligibility tiers for scholarship
awards.
(a) Order of financial aid.--A participating institution
shall apply the financial aid received by an eligible student in
the following order:
(1) Pell Grant.
(2) Pennsylvania State Grant.
(3) Institutional aid.
(4) Private scholarship.
(5) Scholarship award under this article.
(6) Federal work study.
(7) Federal student loans.
(b) Amount of scholarship award.--The amount of a
scholarship award shall be determined annually by the department
20220SB1230PN1667 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
based upon availability of program money. An eligible student
attending:
(1) a community college may receive up to $2,000 per
year; and
(2) a State-owned university may receive up to $4,000
per year.
(c) Application of scholarship award.--After application of
the financial aid specified in subsection (a)(1), (2), (3) and
(4), the scholarship award shall first be applied against direct
charges at the participating institution which include tuition,
fees, room and board owed by an eligible student to the
institution. Any remaining scholarship award may be used by the
scholarship recipient for other costs of attendance.
(d) Limitation.--A scholarship award may not exceed the cost
of attendance after all other financial aid has been applied to
a student's account.
Section 2009-L. College completion award.
The department shall establish and administer a competitive
completion award program for community colleges to provide
scholarship recipients with wraparound services to support
degree completion. Community colleges shall submit proposals in
the manner and format prescribed by the department. The
department may expand the entities eligible for college
completion awards by promulgating regulations.
Section 2010-L. Disqualification from program participation.
An individual who knowingly or intentionally procures,
obtains or aids another to procure or obtain a scholarship award
under this article through fraudulent means shall be
disqualified from participation in the program and shall be
liable to the department for an amount equal to three times the
20220SB1230PN1667 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
amount awarded.
Section 2011-L. Taxability.
A scholarship award received by an eligible student shall not
be considered taxable income 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.
Section 2. This act shall take effect immediately.
20220SB1230PN1667 - 12 -
1
2
3
4
5
6
7