PRINTER'S NO. 185
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
219
Session of
2019
INTRODUCED BY HUGHES, FONTANA, BREWSTER, SCHWANK, COSTA AND
FARNESE, FEBRUARY 5, 2019
REFERRED TO EDUCATION, FEBRUARY 5, 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," establishing the Health-Related
Industries Educational Scholarship Program and the Health-
Related Industries Educational Scholarship Program Fund.
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-J
HEALTH-RELATED INDUSTRIES
EDUCATIONAL SCHOLARSHIP PROGRAM
Section 2601-J. 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:
"Agency." The Pennsylvania Higher Education Assistance
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Agency.
"Contribution." A donation of cash.
"Fund." The Health-Related Industries Educational
Scholarship Program Fund established under section 2603-J.
"Health-related industry." An industry specializing in
health-related services that is authorized to do business in
this Commonwealth and subject to taxes imposed under Article
III, IV, VI, VII, VIII, IX or XV of the Tax Reform Code of 1971
or a tax under Article XVI of the act of May 17, 1921 (P.L.682,
No.284), known as The Insurance Company Law of 1921. The term
includes a pass-through entity.
"Pass-through entity." Any of the following that specializes
in health-related services:
(1) A partnership as defined in section 301(n.0) of the
Tax Reform Code of 1971.
(2) A single-member limited liability company treated as
a disregarded entity for Federal income tax purposes.
(3) A Pennsylvania S corporation as defined in section
301(n.1) of the Tax Reform Code of 1971.
"Program." The Health-Related Industries Educational
Scholarship Program established under section 2602-J.
"Tax Reform Code of 1971." The act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
Section 2602-J. Health-Related Industries Educational
Scholarship Program.
(a) Establishment.-- The Health-Related Industries
Educational Scholarship Program is established in the
Pennsylvania Higher Education Assistance Agency.
(b) Use of funds.--The agency may use moneys generated to
provide grants for defraying the necessary expense of residents
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of this Commonwealth who are eligible students pursuing an
eligible course of study pertaining to health-related
industries.
(c) Eligibility.--The agency shall determine and approve
student eligibility and education provider eligibility
requirements for the program. In addition to any other
requirements of the agency, in order to be eligible for the
program, a student must:
( 1) complete the Free Application for Federal Student
Aid (FAFSA);
(2) participate in an internship or other equivalent
program with a health-related industry;
(3) maintain satisfactory academic progress;
(4) attend a college or university completion
orientation or equivalent program; and
(5) perform no fewer than 10 hours of community service
during a semester.
(d) Program identification.--The Department of Education
shall consult with the Department of Labor and Industry to
identify programs of study that train individuals for employment
in health-related industries and provide the agency with a list
of eligible programs of study.
(e) Grant awards.--Grant awards shall be established by the
agency based upon available resources, including moneys
deposited into the Health-Related Industries Educational
Scholarship Program Fund established under section 2603-J.
Section 2603-J. Health-Related Industries Educational
Scholarship Program Fund.
(a) Establishment.--There is established a special fund in
the State Treasury known as the Health-Related Industries
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Educational Scholarship Program Fund.
(b) Deposits.--The agency shall deposit moneys contributed
to the program under section 2604-J into the fund.
(c) Use of moneys.--In addition to any other moneys
allocated for the program, the agency shall use the moneys
deposited into the fund under subsection (b) to award grants to
students in the program.
Section 2604-J. Tax credit.
(a) Participating industries.--
(1) The Department of Revenue shall grant a tax credit
against any tax due under Article III, IV, VI, VII, VIII, IX
or XV of the Tax Reform Code of 1971 to a health-related
industry if the health-related industry provides proof of a
contribution to the fund.
(2) The tax credit shall apply to the taxable year in
which the contribution is made which shall not exceed 75% of
the total amount contributed to the fund during the taxable
year by the health-related industry.
(b) Additional amount.--
(1) The Department of Revenue shall grant a tax credit
of up to 90% against any tax due under Article III, IV, VI,
VII, VIII, IX or XV of the Tax Reform Code of 1971 to a
health-related industry if the health-related industry
provides proof of all of the following:
(i) Making a contribution to the fund.
(ii) Hiring a resident of this Commonwealth who
received a grant under the program during the taxable
year in which the contribution was made to the fund.
(2) The tax credit shall apply to the taxable year in
which the contribution is made to the fund.
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(c) Availability.--Tax credits granted under this section
shall be made available on a first-come, first-served basis.
Section 2605-J. Limitations.
(a) Amount.--A tax credit granted under section 2604-J shall
not exceed $300,000 annually per health-related industry for
contributions made to the fund.
(b) Aggregate amount.--The total aggregate amount of all tax
credits granted under section 2604-J shall not exceed
$200,000,000 in a fiscal year.
(c) Liability.--A tax credit granted under section 2604-J
for any one taxable year shall not exceed the tax liability of a
health-related industry.
(d) Applicability of credits.--A tax credit granted under
section 2604-J shall not be applied against any tax withheld by
an employer from an employee under Article III of the Tax Reform
Code of 1971.
Section 2606-J. Regulations.
The agency shall develop guidelines and may promulgate
regulations necessary to implement this article.
Section 2. This act shall take effect in 60 days.
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