S0795B0902A04368 DMS:EJH 05/06/24 #90 A04368
AMENDMENTS TO SENATE BILL NO. 795
Sponsor: SENATOR A. WILLIAMS
Printer's No. 902
Amend Bill, page 1, lines 5 and 6, by striking out
"establishing the Lifeline Scholarship" in line 5 and all of
line 6 and inserting
establishing the Pennsylvania Award for Student Success
Scholarship Program.
Amend Bill, page 1, lines 10 and 11, by striking out "an
article" and inserting
articles
Amend Bill, page 1, lines 12 through 19; pages 2 through 14,
lines 1 through 30; page 15, lines 1 through 18; by striking out
all of said lines on said pages and inserting
ARTICLE XXVII-E
(Reserved)
ARTICLE XVII-F
PENNSYLVANIA AWARD FOR STUDENT
SUCCESS SCHOLARSHIP PROGRAM
Section 1701-F. Scope of article.
This article relates to the Pennsylvania Award for Student
Success Scholarship Program.
Section 1702-F. 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 participation in the
program under section 1704-F on behalf of an eligible student.
"Attendance boundary." As defined in section 2002-B.
"Department." The Department of Education of the
Commonwealth.
"Eligible student." A school-age child who:
(1) Is a resident of this Commonwealth.
(2) Has not received a high school diploma.
(3) Resides, as determined under section 1302, within
the attendance boundary of a low-achieving school or resided,
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as determined under section 1302, within the attendance
boundary of a low-achieving school at the time the State
Treasury received written confirmation that the child
accepted an offer of enrollment under section 1704-F.
(4) Lives in a household with a household income below
250% of the Federal poverty guidelines or lived in a
household with a household income below 250% of the Federal
poverty guidelines at the time the State Treasury received
written confirmation that the child accepted an offer of
enrollment under section 1704-F.
(5) Satisfies one of the following:
(i) Attended a public school in this Commonwealth in
the preceding school year.
(ii) Received a scholarship from the program in the
preceding school year.
(iii) Will attend kindergarten for the first time in
the next school year.
"Fund." The Pennsylvania Award for Student Success
Scholarship Fund established in section 1708-F.
"Kindergarten." A one-year formal educational program,
whether part time or full time, that occurs during the school
year immediately prior to first grade.
"Low-achieving school." As defined in section 2002-B.
"Nonpublic school." A nonprofit school, other than a public
school, located in this Commonwealth where a resident of this
Commonwealth may legally fulfill the compulsory attendance
requirements of this act.
"Parent." An individual who is a resident of this
Commonwealth and:
(1) has legal custody or guardianship of an eligible
student; or
(2) keeps in the individual's home an eligible student
and supports the student gratis as if the student were a
lineal descendant of the individual.
"Participating nonpublic school." A nonpublic school
offering a program of instruction for kindergarten through grade
twelve, or a combination of grades, that notifies the State
Treasury of the nonpublic school's desire to participate in the
program and provides certification to the State Treasury that
the nonpublic school meets the criteria under section 1711-F.
"PASS scholarship account." A spending account established
and administered by the State Treasury, and directed by a parent
for a scholarship recipient, that may be used for tuition,
school-related fees and special education services fees to
attend a participating nonpublic school.
"Program." The Pennsylvania Award for Student Success
Scholarship Program established under section 1703-F(a).
"Public school." A school operated by a school district, an
intermediate unit, area career and technical school, a charter
school, regional charter school or cyber charter school.
"Resident school district." The school district in which an
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eligible student resides.
"Scholarship." A scholarship that is awarded to an eligible
student under the program.
"Scholarship recipient." An eligible student that is awarded
a scholarship under the program.
"School-age child." A child enrolling in kindergarten or in
grade one through grade twelve.
"School-related fee." A fee charged by a participating
nonpublic school to all students for books, instructional
materials, technology equipment and services, uniforms,
activities and concurrent enrollment programs under Article XVI-
B.
"School year." A school term as defined in section 102.
"Special education services fee." A fee charged by a
participating nonpublic school for special education services
for a student with special needs as agreed to by the parent and
the participating nonpublic school.
"State Treasury." The Treasury Department of the
Commonwealth.
"Student with special needs." A child who is subject to an
individualized education program under 20 U.S.C. Ch. 33
(relating to education of individuals with disabilities) and 22
Pa. Code Ch. 14 (relating to special education services and
programs).
Section 1703-F. Pennsylvania Award for Student Success
Scholarship Program.
(a) Establishment.--Beginning with the 2024-2025 school
year, the Pennsylvania Award for Student Success Scholarship
Program is established as a program in the State Treasury to
provide scholarships to help eligible students pay tuition,
school-related fees and special education services fees for
attendance at a participating nonpublic school. The program may
be referred to as the PASS Scholarship Program.
(b) Notice to parents.--
(1) Within 15 days of receipt of a notice under section
2010-B, a school district with at least one school designated
as a low-achieving school shall notify the parent of a
student who is attending or residing within the attendance
boundary of a low-achieving school during the school year of
the school's designation.
(2) The notice shall be in a form provided by the State
Treasury, in consultation with the department, and shall
provide the following information regarding the program:
(i) A description of the program.
(ii) Instructions for obtaining information about
applying for a scholarship under the program.
(iii) A list of schools in the school district that
have been designated as low-achieving schools.
(iv) Notice of the parent's responsibilities
regarding application to a participating nonpublic school
if the parent seeks to enroll an eligible student in a
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participating nonpublic school.
(3) The notice shall be posted on the school district's
publicly accessible Internet website.
(c) Notice to State Treasury.--A school district required to
submit a notice to parents under subsection (b) shall provide
the State Treasury with a list of students whose parents were
provided the notice. The notification shall be made in a manner
and form established by the State Treasury.
Section 1704-F. Application.
(a) Application form.--By June 1, 2024, the State Treasury
shall develop an application form that can be accessed from and
submitted electronically on the State Treasury's publicly
accessible Internet website.
(b) Application and approval process.--
(1) By July 1, 2024, and by April 1 of each year
thereafter, the applicant may apply to the State Treasury for
a scholarship for the following school year according to
guidelines developed by the State Treasury under section
1709-F. An application shall be approved by the State
Treasury if the student meets the eligibility requirements of
this article.
(1.1) A renewal application shall be approved by the
State Treasury if the student meets the eligibility
requirements of this article, notwithstanding the residence
and income criteria specified in paragraphs (3) and (4) of
the definition of "eligible student" in section 1702-F.
(1.2) The parent may appeal the State Treasury's
decision regarding nonapproval of an application. The appeal
shall be governed by 2 Pa.C.S. Chs. 1 (relating to general
provisions), 5 (relating to practice and procedure) and 7
(relating to judicial review).
(2) By July 1, 2024, and by May 1 of each year
thereafter, the State Treasury shall notify the applicant
whether a scholarship will be awarded for the following
school year.
(3) For the 2024-2025 school year, scholarships shall be
awarded on a first-come, first-served basis considering money
available in the fund.
(4) For the 2025-2026 school year and each school year
thereafter, priority for scholarships shall be given to prior
year scholarship recipients. New applicants shall be awarded
a scholarship on a first-come, first-served basis considering
money available in the fund.
(5) Upon notification by the State Treasury that a
scholarship has been awarded, the applicant shall apply for
enrollment of the scholarship recipient directly to the
participating nonpublic school under an application procedure
developed by the participating nonpublic school.
(6) By July 1, 2024, and by June 1 each year thereafter,
a participating nonpublic school shall provide written
confirmation to the State Treasury of scholarship recipients
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who have accepted an offer of enrollment for the following
school year and provide the State Treasury with the amounts
to be charged to the scholarship recipient for tuition,
school-related fees and special education services fees. The
notification shall be made in a manner and form established
by the State Treasury.
(7) The State Treasury may establish a waiting list for
eligible students with approved applications and who did not
receive awards due to availability of money in the fund and,
if, after July 1, 2024, and by July 1 each year thereafter,
additional money is available in the fund for scholarships,
may award scholarships to the eligible students on a first-
come, first-served basis.
Section 1705-F. Agreement.
(a) Authorization.--Upon receipt of written confirmation
that the scholarship recipient has accepted an offer of
enrollment under section 1704-F, the State Treasury shall enter
into or renew an agreement with the applicant. The agreement
shall provide the following:
(1) The scholarship recipient shall enroll in a
participating nonpublic school for the school year for which
the agreement applies.
(2) A certain sum of money shall be deposited into a
PASS scholarship account under section 1706-F on behalf of
the scholarship recipient.
(3) The money in the PASS scholarship account may be
expended only as authorized under this article.
(4) The parent shall notify the State Treasury if the
scholarship recipient no longer resides in this Commonwealth
or withdraws or is forced to withdraw from the participating
nonpublic school within 15 days of the change of residency or
withdrawal.
(b) Term of agreement.--Except as otherwise provided under
this article, an agreement entered into under subsection (a)
shall be valid for one school year.
(c) Termination.--
(1) An agreement entered into under subsection (a) may
be terminated early by the parent for any reason.
(2) An agreement entered into under subsection (a) shall
be terminated by the State Treasury for the following
reasons:
(i) The parent is found to have engaged in
fraudulent misuse of the PASS scholarship account. In
such case, the scholarship recipient shall be ineligible
for future participation in the program. The parent may
appeal the State Treasury's decision regarding
termination and student eligibility within 30 days of
issuance of the decision. The appeal shall be governed by
2 Pa.C.S. Chs. 1 (relating to general provisions), 5
(relating to practice and procedure) and 7 (relating to
judicial review).
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(ii) The scholarship recipient no longer resides in
this Commonwealth.
(iii) The scholarship recipient withdraws or is
forced to withdraw from a participating nonpublic school
prior to the completion of the school year.
(3) If an agreement is terminated early under this
subsection, the following shall apply:
(i) All available money in the PASS scholarship
account shall revert to the fund.
(ii) The participating nonpublic school shall repay
to the State Treasury for deposit into the fund the full
amount of the scholarship payment, reduced on a pro rata
basis by the tuition, school related fees and special
education services fees owed for the portion of the
school year in which the scholarship recipient was
enrolled.
(iii) The participating nonpublic school may not
require a parent to reimburse the participating nonpublic
school for the amount of the scholarship returned to the
State Treasury.
(d) Renewal.--An agreement entered into under subsection (a)
may be renewed for each school year for the same student.
(e) Multiple agreements.--A parent may enter into separate
agreements under subsection (a) for each child of the parent who
is a scholarship recipient.
(f) Explanation.--Upon entering into an agreement under
subsection (a) or renewing an agreement under subsection (d),
the State Treasury shall provide the parent with a written
explanation of the authorized uses of the money in the PASS
scholarship account and, a notice that students with
disabilities who participate in the program are "parentally
placed private school children with disabilities" under 20
U.S.C. ยง 1412 (relating to state eligibility) and an explanation
of the rights of parentally placed private school children under
20 U.S.C. Ch. 33 (relating to Education of Individuals with
Disabilities) ("Individuals with Disabilities Education Act")
and any applicable State law and regulation.
Section 1706-F. Pennsylvania Award for Student Success
Scholarship Account.
(a) Establishment.--If an agreement is entered into under
section 1705-F(a), the State Treasury shall establish a
Pennsylvania Award for Student Success Scholarship Account for
the scholarship recipient. The PASS scholarship account shall be
administered by the State Treasury in accordance with this
article.
(b) Deposit.--
(1) Upon establishment of a PASS scholarship account,
the State Treasury shall deposit a sum of money for the
applicable school year in the PASS scholarship account for
the scholarship recipient in accordance with this section.
(2) For the 2024-2025 school year, the sum shall be as
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follows:
(i) for a student in half-day kindergarten, $2,500;
(ii) for a student in full-day kindergarten through
grade eight, $5,000;
(iii) for a student in grade nine through grade
twelve, $10,000; or
(iv) for a student with special needs regardless of
grade level, $15,000.
(3) Beginning with the 2025-2026 school year, and each
school year thereafter, the amounts in paragraph (2) shall be
increased by the greater of the average percentage increase
in the index as defined in section 302 of the act of June 27,
2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer
Relief Act, for all school districts for the prior school
year and the percentage increase in the appropriation for
basic education for the prior fiscal year. The State Treasury
shall calculate the increases on an annual basis and shall
submit a notice of the increases to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin.
(c) Installments.--The State Treasury shall deposit the
money for each scholarship into a PASS scholarship account on a
schedule determined by the State Treasury in consultation with
the department.
(d) Payments to participating nonpublic schools.--A parent
may direct payments from the PASS scholarship account to a
participating nonpublic school on behalf of the scholarship
recipient via an electronic money transfer system or other
method approved by the State Treasury under section 1709-F.
Section 1707-F. Qualified education expenses.
(a) General rule.--Money deposited into a PASS scholarship
account may be used only to pay for the following qualified
expenses incurred by or associated with the scholarship
recipient:
(1) Tuition required by a participating nonpublic
school.
(2) School-related fees.
(3) Special education services fees.
(b) Prohibition.--A participating nonpublic school that
receives a payment for qualified education expenses authorized
under subsection (a) may not refund, rebate or otherwise
directly share any portion of the payment with the parent who
made the payment.
(c) Tax consequences and status of awards.--
(1) The money in a PASS scholarship account is not
taxable income to the parent or scholarship recipient under
State law.
(2) An award made to, or payment from, a PASS
scholarship account may not be construed to be an
appropriation or financial assistance to a participating
nonpublic school.
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Section 1708-F. Pennsylvania Award for Student Success
Scholarship Fund.
(a) Establishment.--The Pennsylvania Award for Student
Success Scholarship Fund is established in the State Treasury.
All interest and earnings received from investment or deposit of
the money in the fund shall be paid into the fund and used for
scholarships. Any unexpended money and interest or earnings on
the money in the fund may not be transferred or revert to the
General Fund but shall remain in the fund.
(b) Funding.--The fund shall consist of money that is
appropriated, given, granted or donated by the Commonwealth or
any other government or private agency or person for the purpose
established under this article.
(c) Continuing appropriation.--The money in the fund is
appropriated on a continuing basis to the State Treasury for
scholarships.
Section 1709-F. Duties of State Treasury.
(a) General rule.--The State Treasury shall:
(1) Develop guidelines, in consultation with the
department, as necessary for the administration of this
article.
(2) Make payments to PASS scholarship accounts as
provided in this article.
(3) Develop a system that enables a parent to direct
payment to a participating nonpublic school in accordance
with this article.
(4) Develop a process by which a nonpublic school may
inform the State Treasury of the nonpublic school's interest
to participate in the program and demonstrate compliance with
the requirements of this article.
(5) Ensure that eligible students and their parents are
informed annually of the participating nonpublic schools in
the program by posting a list of participating nonpublic
schools on the State Treasury's publicly accessible Internet
website by June 1, 2024, and by April 1 of each year
thereafter.
(6) At such time and in such form and manner as may be
directed by the State Treasury, request and receive
information and data from a public school, resident school
district, participating nonpublic school or applicant
determined to be necessary by the State Treasury to
administer this article.
(b) Third-party administration.--The State Treasury may
contract with a third party to administer the program.
(c) Contracting.--
(1) Notwithstanding any provision of 62 Pa.C.S. Pt. I
(relating to Commonwealth Procurement Code), to the contrary
and in order to facilitate the prompt implementation of this
article, a contract may be awarded for a supply or service
without competition if the State Treasury determines in
writing that the contract is necessary for the implementation
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of any provision of this article and is in the best interest
of the Commonwealth. T he State Treasury shall provide and
make publicly available a written justification of any
procurement under this section.
(2) Paragraph (1) shall expire no later than two years
following the issuance of the procurement under paragraph
(1). Procurements issued after this period shall be issued as
provided by law.
(d) Regulations.--
(1) In order to facilitate the prompt implementation of
this chapter, regulations determined to be necessary and
promulgated by the State Treasury shall be deemed temporary
regulations and shall expire no later than two years
following the publication of temporary regulations. The State
Treasury may promulgate temporary regulations not subject to:
(i) Section 612 of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of
1929.
(ii) 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.
(iii) Section 204(b) of the act of October 15, 1980
(P.L.950, No.164), known as the Commonwealth Attorneys
Act.
(iv) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(2) The authority provided to the State Treasury to
adopt temporary regulations in this subsection shall expire
no later than two years following the publication of the
temporary regulations. Regulations adopted after this period
shall be promulgated as provided by law.
Section 1710-F. Duties of Auditor General.
The Auditor General may:
(1) Conduct a random audit of PASS scholarship accounts.
(2) Refer cases of suspected fraudulent misuse of PASS
scholarship accounts to the Inspector General for
investigation. If the investigation results in a finding that
rises to the level of criminal activity, the Inspector
General shall refer the matter to the appropriate law
enforcement agency for prosecution.
(3) Notify the State Treasury of cases of suspected
fraudulent misuse that are referred to the Inspector General.
Section 1711-F. Duties of participating nonpublic schools.
(a) Notification requirement.--A nonpublic school that
desires to participate in the program shall notify the State
Treasury by a date and in a manner and form established by the
State Treasury. The notification shall include certification by
the nonpublic school that:
(1) The nonpublic school is a nonprofit entity exempt
from Federal taxation under 26 U.S.C. ยง 501(c)(3) (relating
to exemption from tax on corporations, certain trusts, etc.).
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(2) The nonpublic school complies with the
nondiscrimination policies specified in 42 U.S.C. ยง 1981
(relating to equal rights under the law).
(3) The nonpublic school complies with the provisions of
sections 111 and 111.1.
(b) Prohibition.--A participating nonpublic school may not
charge a Pennsylvania award for student success scholarship
recipient a tuition rate, student-related fees or special
education services fees that are higher than the rates the
participating nonpublic school would have charged to a student
who had not received a Pennsylvania award for student success
scholarship.
(c) Reporting requirements.--
(1) Each participating nonpublic school shall report in
a manner and form determined by the State Treasury, in
consultation with the department, information regarding
scholarship recipients enrolled in the participating
nonpublic school as follows:
(i) Enrollment and disenrollment.
(ii) Regular attendance.
(iii) Chronic absenteeism.
(iv) Academic progress as measured by advancement to
the next grade level.
(v) Indication of graduation.
(vi) Concurrent or dual enrollment course credits.
(2) The State Treasury shall report the information
regularly to the department on a schedule agreed to by the
State Treasury and the department.
(d) Construction.--
(1) For purposes of this article, a participating
nonpublic school shall be autonomous and is not an agent of
the State Treasury, the department or the Commonwealth.
(2) Neither the State Treasury, the department nor other
State agency may regulate the educational program of a
participating nonpublic school that accepts money from a
scholarship recipient beyond what is necessary to administer
the program.
Section 1712-F. Bar of certain participating nonpublic schools.
(a) General rule.--The State Treasury may bar a nonpublic
school from participation in the program if State Treasury
establishes that the nonpublic school has:
(1) routinely failed to comply with the requirements
established in section 1711-F; or
(2) failed to provide a scholarship recipient with the
educational services funded by the recipient's PASS
scholarship account.
(b) Notice.--If the State Treasury bars a nonpublic school
from participation in the program, the State Treasury shall,
after any appeal is concluded and the State Treasury's decision
is upheld under subsection (c), post the decision on the State
Treasury's publicly accessible Internet website.
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(c) Appeal.--A nonpublic school may appeal the State
Treasury's decision to bar its participation in the program
within 30 days of issuance of the decision. The appeal shall be
governed by 2 Pa.C.S. Chs. 1 (relating to general provisions), 5
(relating to practice and procedure) and 7 (relating to judicial
review).
Section 1713-F. Duties of resident school districts.
A resident school district shall provide a participating
nonpublic school that has admitted a scholarship recipient with
a complete copy of the scholarship recipient's school record
within 10 days of the receipt of notice from the participating
nonpublic school of the scholarship recipient's enrollment.
Section 1714-F. Report.
(a) Duty to prepare and submit.--Beginning January 31, 2025,
and each January 31 thereafter, the State Treasury, in
consultation with the department, shall prepare and submit to
the General Assembly an annual report on the program.
(b) Contents.--The report shall include the following:
(1) The total number of applications received for the
program.
(2) The total number of applications received for the
program, by resident school district.
(3) The total number of applications approved for the
program.
(4) The total number of applications approved for the
program, by resident school district.
(5) The total number of PASS scholarship accounts
terminated early.
(6) The total number of PASS scholarship accounts
investigated for fraud by the Inspector General.
(7) The total number of scholarships awarded to students
attending half-day kindergarten.
(8) The total number of scholarships awarded to students
attending full-day kindergarten through grade eight.
(9) The total number of scholarships awarded to students
attending grade nine through grade twelve.
(10) The total dollar amount of scholarships awarded.
(11) The total number of applications not approved due
to lack of funding.
(12) The cost of administration of the program.
(13) Other information the State Treasury deems helpful
to the General Assembly.
2024/90DMS/SB0795A04368 - 11 -
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