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"Local workforce investment board."  As defined in section
11103 of the act of December 18, 2001 (P.L.949, No.114), known as
12the Workforce Development Act.

13"Participating agencies." The term includes the Department
14of Education and the Department of Community and Economic
15Development of the Commonwealth.

16"Pass-through entity."  A partnership as defined in section
17301(n.0) of the act of March 4, 1971 (P.L.6, No.2), known as the
18Tax Reform Code of 1971, a single-member limited liability
19company treated as a disregarded entity for Federal income tax
20purposes or a Pennsylvania S corporation as defined in section
21301(n.1) of the Tax Reform Code of 1971.

22"Payment." An amount of money paid in consideration for a
23tax credit under section 7(d).

24"Program partners."  All entities that participate in a
25school-to-work pilot program.

26"Replacement school-to-work pilot program." A school-to-work
27pilot program which has been approved to participate in
28CareerBound under section 5(e).

29"School partner." A school district, vocational-technical
30school, intermediate unit, charter school or cyber charter

1school.

2"School-to-work pilot program." A pilot program which has
3been approved to participate in CareerBound.

4"Tax liability." An amount of tax due under Article III, IV,
5VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,
6No.2), known as the Tax Reform Code of 1971, or under Article
7XVI of the act of May 17, 1921 (P.L.682, No.284), known as The
8Insurance Company Law of 1921.

9"Taxpayer." A business entity authorized to do business in
10this Commonwealth and subject to taxes imposed under Article
11III, IV, VI, VII, VIII, IX or XV of the act of March 4, 1971
12(P.L.6, No.2), known as the Tax Reform Code of 1971 or a tax
13under Article XVI of the act of May 17, 1921 (P.L.682, No.284),
14known as The Insurance Company Law of 1921. The term includes a
15pass-through entity.

16"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
17known as the Tax Reform Code of 1971.

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

20Section 3. CareerBound Program.

21(a) Establishment.--There is established within the
22department a pilot program to be known as CareerBound.

23(b) Administration.--The program shall be administered by
24the department to empower local workforce investment boards,
25school partners and business partners to collaboratively develop
26innovative school-to-work pilot programs to do all the
27following:

28(1) Provide students with career exploration
29opportunities and exposure to high-priority occupations which
30will enable each student to make an informed decision on his

1or her future career path.

2(2) Provide local workforce investment boards with the
3funding and support necessary to implement innovative school-
4to-work pilot programs.

5(3) Provide business partners with an opportunity to
6develop collaborative relationships with school partners and
7local workforce investment boards so that the next generation
8of workers are well-equipped to meet the demand for high-
9priority occupations.

10(4) Provide school partners with the funds and framework
11to deliver to students a relevant and rigorous curriculum
12which prepares students for high-priority occupations.

13Section 4.  School-to-work pilot program requirements.

14(a)  Curriculum.--The curriculum for a school-to-work pilot
15program must include one or more of the following components:

16(1) Early exposure. Curriculum approved under this
17paragraph must provide students with a broad orientation to
18the tools, processes and procedures used by individuals
19employed in a high-priority occupation. Activities may
20include student visits to a business partner's facilities for
21company tours, demonstrations, field trips and lessons to
22familiarize students with the basic features of a high-
23priority occupation.

24(2)  Practical exposure. Curriculum approved under this
25paragraph must provide students with a detailed understanding
26of the tools, processes and procedures used by individuals
27employed in a high-priority occupation. Activities may
28include extended visits by students to a business partner's
29facilities for demonstrations, job shadowing and hands-on
30experience with the duties and skills necessary to be

1employed in a high-priority occupation.

2(3)  Extended exposure. Curriculum approved under this
3paragraph must provide students with an in-depth
4understanding of the tools, processes and procedures used by
5individuals employed in a high-priority occupation.
6Activities may include apprenticeships, internships and
7cooperative learning opportunities to give the student
8practical knowledge which could be directly applicable to a
9high-priority occupation.

10(b)  Occupational focus.--Curricula approved under subsection
11(a) must be focused on providing students with exposure to high-
12priority occupations which are either designated as high-
13priority occupations Statewide or within the region served by
14the local workforce investment board.

15Section 5. Application and approval process.

16(a) Application.--A local workforce investment board may
17submit an application to the department requesting approval for
18participation in CareerBound.

19(b) Application requirements.--A completed application must
20describe the proposed school-to-work pilot program on a form and
21in a manner prescribed by the department. An application must
22include all of the following:

23(1) A list of program partners, including a declaration
24of interest by at least one school partner and at least one
25business partner. The program partners may include nonprofit
26business-support entities 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(c) Approval process.--

13(1) The department, in consultation with participating
14agencies and the board as needed, shall approve up to seven
15school-to-work pilot programs for participation in
16CareerBound.

17(2) Priority must be given to a proposed school-to-work
18pilot program demonstrating one or more of the following
19characteristics:

20(i) substantial program integration across
21educational levels, including use of multiple curricula
22components listed in section 4(a);

23(ii) an ability to leverage other funding and
24programming resources; or

25(iii) a commitment from a business partner to
26provide preferred interviews to students completing the
27school-to-work pilot program.

28(3) Additional consideration must be given to a proposed
29school-to-work pilot program which includes multiple business
30partners or multiple school partners.

1(d) Contractual relationship.--At the completion of the
2approval process, the department shall enter into a contract
3with all program partners connected to a school-to-work pilot
4program. The contract shall require the signatories to provide
5the services described in the approved school-to-work pilot
6program from funds appropriated or distributed for this purpose
7or from funds identified by the participating agencies for this
8purpose under the general appropriation act.

9(e) Termination and replacement.--The department, in
10consultation with participating agencies and the board as
11needed, may terminate a school-to-work pilot program for failure
12to comply with program requirements. Consistent with the
13requirements in subsection (c), a replacement school-to-work
14pilot program may be approved.

15(f) Expiration.--A school-to-work pilot program shall expire
16at the end of the fourth school year of operation.

17Section 6.  Program operation.

18(a) Cooperative management.--In collaboration with the
19participating agencies and the board, the department shall
20manage the operation of CareerBound, establish an application
21process and institute such guidelines and procedures as are
22necessary to implement CareerBound. The guidelines must
23enumerate allowed and disallowed expenses, provided that
24administrative expenses over 5% shall be disallowed.

25(b) Distribution.--The department, in consultation with
26participating agencies and the board as needed, shall determine
27the distribution of available funds from the restricted account
28in section 7(e) among the school-to-work pilot programs.

29Section 7.  Application for tax credit.

30(a)  Business partner.--A taxpayer that is a business partner

1may apply to the Department of Community and Economic
2Development for a tax credit. An application under this
3subsection must include the amount of tax credit requested by
4the taxpayer and must be made within 90 days of the taxpayer's
5signing of the contract under section 5(d).

6(b) Other taxpayers.--A taxpayer that is not a business
7partner may apply to the Department of Community and Economic
8Development for a tax credit. An application under this
9subsection must include the amount of tax credit requested by
10the taxpayer.

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

12(1) For taxpayers that are business partners applying
13for a tax credit under subsection (a), tax credits under this
14article shall be made available by the Department of
15Community and Economic Development on a first-come, first-
16served basis within the limitation established under
17subsection (g).

18(2) Tax credits remaining after the allocation under
19paragraph (1) shall be made available to all other taxpayers
20by the Department of Community and Economic Development on a
21first-come, first-served basis within the limitation
22established under subsection (g).

23(d)  Payments.--A taxpayer that is approved to receive a tax
24credit under subsection (a) or (b) shall make payment to the
25Department of Community and Economic Development in the amount
26approved by the Department of Community and Economic
27Development. The payment shall be made in the manner prescribed
28by the Department of Community and Economic Development.

29(e) Restricted account.--The Department of Community and
30Economic Development shall deposit all payments made pursuant to

1subsection (d) into a restricted account for distribution to
2school-to-work pilot programs according to section 6(b).

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

4(1) Upon receipt of payment under subsection (d), the
5Department of Community and Economic Development shall issue
6to the taxpayer a tax credit certificate equal to the total
7tax credits approved for the taxpayer. For a taxpayer that is
8a business partner applying under subsection (a), the tax
9credit amount must be equal to 90% of the amount paid in
10subsection (d). For a taxpayer applying under subsection (b),
11the tax credit amount must be equal to 75% of the amount paid
12in subsection (d).

13(2) The tax credit certificate must state:

14(i) The amount of tax credits that the taxpayer may
15claim.

16(ii) The tax years in which the tax credits may
17first be utilized by the taxpayer.

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

19(iv) The procedure to be used for transferring the
20tax credits to another taxpayer.

21(v) Other requirements that the Department of
22Community and Economic Development and Department of
23Revenue consider to be necessary.

24(g)  Amount.--The total aggregate amount of all tax credits
25issued under this act may not exceed $10,000,000.

26Section 8. Carryover, carryback, refund and assignment.

27(a) Carryover.--If the taxpayer cannot use the entire amount
28of the tax credit for the taxable year in which the taxpayer is
29eligible for the credit, the excess may be carried over to
30succeeding taxable years and used as a credit against the

1taxpayer's tax liability for those taxable years. Each time that
2the tax credit is carried over to a succeeding taxable year it
3shall be reduced by the amount of tax credits claimed during the
4immediately preceding taxable year. The tax credits expire no
5later than June 30, 2018.

6(b) Carryback or refund.--A taxpayer may not be entitled to
7carry back or obtain a refund of an unused tax credit.

8(c) Sale or assignment.--A taxpayer, upon application to and
9approval by the Department of Revenue, may sell or assign, in
10whole or in part, a tax credit granted to the taxpayer under
11this act if the taxpayer does not have a tax liability against
12which the tax credit may be applied in a taxable year in which
13the tax credit is permitted to be claimed. The Department of
14Revenue shall establish guidelines for the approval of an
15application under this subsection. Before an application is
16approved, the Department of Revenue shall make a finding that
17the taxpayer and its assignee have filed the required State tax
18reports and returns for the taxable years and paid any balance
19of State tax due as determined by the Department of Revenue.

20(d) Purchaser and assignee.--The purchaser or assignee of a
21tax credit under subsection (c) shall immediately claim the
22credit against its tax liability in the taxable year in which
23the purchase or assignment is made. The purchaser or assignee
24may not carry back, carry forward or obtain a refund of or sell
25or assign the tax credit. The purchaser or assignee shall notify
26the Department of Revenue of the seller or assignor of the tax
27credit in compliance with procedures specified by the Department
28of Revenue.

29Section 9. Annual and final reports.

30(a) Annual reports.--Within 60 days of the end of a school

1year in which a school-to-work pilot program is in operation,
2the department, participating agencies and the board shall
3jointly submit a report to the Governor, the Auditor General,
4the chairman and minority chairman of the Appropriations
5Committee of the Senate, the chairman and minority chairman of
6the Education Committee of the Senate, the chairman and minority
7chairman of the Labor and Industry Committee of the Senate, the
8chairman and minority chairman of the Appropriations Committee
9of the House of Representatives, the chairman and minority
10chairman of the Education Committee of the House of
11Representatives and the chairman and minority chairman of the
12Labor and Industry Committee of the House of Representatives
13regarding the implementation of CareerBound and the school-to-
14work pilot programs over the previous school year.

15(b) Final report.--Within six months of the expiration of
16the school-to-work pilot programs according to section 5(f), the
17department, participating agencies and the board shall jointly
18submit a report to the the Governor, the Auditor General, the
19chairman and minority chairman of the Appropriations Committee
20of the Senate, the chairman and minority chairman of the
21Education Committee of the Senate, the chairman and minority
22chairman of the Labor and Industry Committee of the Senate, the
23chairman and minority chairman of the Appropriations Committee
24of the House of Representatives, the chairman and minority
25chairman of the Education Committee of the House of
26Representatives and the chairman and minority chairman of the
27Labor and Industry Committee of the House of Representatives
28regarding the implementation of CareerBound and the school-to-
29work pilot programs.

30(c) Report contents.--In addition to information or analysis

1required by the department, in consultation with participating
2agencies and the board as needed, the interim and final reports
3must include information about each school-to-work pilot
4program, including the number of participating students and the
5amount spent.

6Section 10. Effective date.

7This act shall take effect immediately.