SB 795 — An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, establishing the Pennsylvania Award for Student Success Scholarship Program.

(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.

20230SB0795PN1587 - 16 - "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 20230SB0795PN1587 - 17 - SCHOOL, REGIONAL CHARTER SCHOOL OR CYBER CHARTER SCHOOL.

"RESIDENT SCHOOL DISTRICT." THE SCHOOL DISTRICT IN WHICH AN 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 20230SB0795PN1587 - 18 - 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 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 20230SB0795PN1587 - 19 - 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 20230SB0795PN1587 - 20 - 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 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 20230SB0795PN1587 - 21 - 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 20230SB0795PN1587 - 22 - 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).

(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.

20230SB0795PN1587 - 23 - (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.

§ 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 FOLLOWS:

(I) FOR A STUDENT IN HALF-DAY KINDERGARTEN, $2,500;

(II) FOR A STUDENT IN FULL-DAY KINDERGARTEN THROUGH GRADE EIGHT, $5,000;

20230SB0795PN1587 - 24 - (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:

20230SB0795PN1587 - 25 - (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.

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.

20230SB0795PN1587 - 26 - (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 20230SB0795PN1587 - 27 - 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 OF ANY PROVISION OF THIS ARTICLE AND IS IN THE BEST INTEREST OF THE COMMONWEALTH.

THE 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 20230SB0795PN1587 - 28 - (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.

§ 501(C)(3) (RELATING TO EXEMPTION FROM TAX ON CORPORATIONS, CERTAIN TRUSTS, ETC.).

(2) THE NONPUBLIC SCHOOL COMPLIES WITH THE 20230SB0795PN1587 - 29 - NONDISCRIMINATION POLICIES SPECIFIED IN 42 U.S.C.

§ 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 20230SB0795PN1587 - 30 - 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.

(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 20230SB0795PN1587 - 31 - 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.

20230SB0795PN1587 - 32 - (13) OTHER INFORMATION THE STATE TREASURY DEEMS HELPFUL TO THE GENERAL ASSEMBLY.

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