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                                                       PRINTER'S NO. 331

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 324 Session of 1999


        INTRODUCED BY GERLACH, ARMSTRONG, SALVATORE, MOWERY AND
           TOMLINSON, FEBRUARY 4, 1999

        REFERRED TO EDUCATION, FEBRUARY 4, 1999

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," providing for a pilot project;
     6     authorizing students in certain school districts to attend
     7     the public schools selected by their parents; providing for
     8     tuition grants; creating the Office of Educational
     9     Opportunity and the School Choice Exploratory Commission;
    10     further providing for payments on account of transportation;
    11     and making an appropriation.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  The act of March 10, 1949 (P.L.30, No.14), known
    15  as the Public School Code of 1949, is amended by adding an
    16  article to read:
    17                          ARTICLE XIII-B.
    18                           SCHOOL CHOICE.
    19     Section 1301-B.  Short Title of Article.-- This article shall
    20  be known and may be cited as the "Pennsylvania School Choice
    21  Act."
    22     Section 1302-B.  Definitions.--As used in this article,

     1     "Commission" shall mean the School Choice Exploratory
     2  Commission.
     3     "Department" shall mean the Department of Education of the
     4  Commonwealth.
     5     "Eligible student" shall mean a school-age resident of this
     6  Commonwealth who attends or is about to attend a kindergarten or
     7  an elementary or secondary school within this Commonwealth on a
     8  tuition-paying basis and whose parents received taxable income,
     9  as defined in section 63 of the Internal Revenue Code of 1986
    10  (Public Law 99-514, 26 U.S.C. § 1 et seq.) or the corresponding
    11  provision of any successor statute thereto, during the calendar
    12  year preceding the beginning of the school year for which a
    13  grant is sought under this article, which did not exceed
    14  seventy-five thousand dollars ($75,000). For each school year
    15  thereafter during the period prescribed in subsection (b) of
    16  section 1307-B, the taxable income limit shall be adjusted by
    17  the commission to reflect any percentage change in the Consumer
    18  Price Index calculated by the United States Department of Labor.
    19     "Office" shall mean the Office of Educational Opportunity in
    20  the Department of Education.
    21     "Parent" shall mean a resident of this Commonwealth who is a
    22  parent of an eligible student or a person standing in loco
    23  parentis to an eligible student.
    24     "School" shall mean any public or nonpublic elementary or
    25  secondary school wherein a resident of this Commonwealth may
    26  fulfill the compulsory school attendance requirements of this
    27  act, and which does not discriminate on the basis of race in its
    28  admissions or other educational policies. The term also includes
    29  a kindergarten program operated by a school.
    30     "Selected districts" shall mean districts participating under
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     1  subsection (a) of section 1307-B and whose students, residing
     2  therein, are eligible to participate in the pilot project
     3  pursuant to this article.
     4     Section 1303-B.  Educational Choice.--The General Assembly
     5  finds that many disadvantaged school-age residents of this
     6  Commonwealth enjoy comparatively fewer educational opportunities
     7  or options than other counterparts of greater economic means. In
     8  addition, the General Assembly finds it appropriate to review
     9  and consider the lifting of limitations and restrictions on
    10  their ability to select the educational settings best suited to
    11  their needs. In order to assist in equalizing educational
    12  opportunities for its citizens, to better prepare its citizens
    13  to compete for employment opportunities and to foster
    14  development of a more capable and better-educated work force for
    15  Commonwealth employers, the General Assembly hereby creates a
    16  pilot project to explore the enhancement of educational choice
    17  in this Commonwealth.
    18     Section 1304-B.  School Choice Exploratory Commission.--(a)
    19  The General Assembly hereby establishes the School Choice
    20  Exploratory Commission. The commission shall consist of thirteen
    21  (13) members, appointed by the Governor, composed of the
    22  following:
    23     (1)  The Secretary of Education.
    24     (2)  The chairman of the Education Committee of the Senate.
    25     (3)  The minority chairman of the Education Committee of the
    26  Senate.
    27     (4)  The chairman of the Education Committee of the House of
    28  Representatives.
    29     (5)  The minority chairman of the Education Committee of the
    30  House of Representatives.
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     1     (6)  A representative of the Pennsylvania School Board
     2  Association.
     3     (7)  A representative of the Pennsylvania State Education
     4  Association.
     5     (8)  A representative of the Pennsylvania Catholic
     6  Conference.
     7     (9)  A representative of the State System of Higher
     8  Education.
     9     (10)  A representative of the Pennsylvania Association of
    10  Colleges and Universities.
    11     (11)  A representative of the Reach Alliance.
    12     (12)  A representative of the Pennsylvania Parent Teachers
    13  Association.
    14     (13)  A representative of a nonparochial private school
    15  association.
    16     (b)  The members shall annually elect, by a majority vote of
    17  the members, a chairperson and a vice chairperson of the
    18  commission.
    19     (c)  Seven (7) members shall constitute a quorum for the
    20  transaction of any business, and the act by the majority of the
    21  members present at any meeting in which there is a quorum shall
    22  be deemed to be the act of the commission.
    23     Section 1305-B.  Meetings of the Commission.--(a)  All
    24  meetings of the commission shall be advertised and conducted
    25  pursuant to the act of July 3, 1986 (P.L.388, No.84), known as
    26  the "Sunshine Act," unless otherwise provided in this section.
    27     (b)  The commission shall meet at least once every two (2)
    28  months, and may provide for special meetings as it deems
    29  necessary. Meeting dates shall be set by a majority vote of the
    30  members of the commission or by the call of the chairperson upon
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     1  seven (7) days' notice to all commission members.
     2     (c)  All meetings of the commission shall be publicly
     3  advertised, as provided for in this subsection, and shall be
     4  open to the public, except that the commission, through its
     5  bylaws, may provide for executive sessions of the commission on
     6  subjects permitted to be discussed in such sessions under the
     7  Sunshine Act. No act of the commission shall be taken in an
     8  executive session.
     9     (d)  The commission shall publish a schedule of its meetings
    10  in the Pennsylvania Bulletin and in at least four (4) newspapers
    11  in general circulation in this Commonwealth. The notice shall be
    12  published at least once in each calendar quarter and shall list
    13  the schedule of meetings of the commission to be held in the
    14  subsequent calendar quarter. The notice shall specify the date,
    15  time and place of the meeting and shall state that the
    16  commission's meetings are open to the general public, except
    17  that notice under this subsection shall not be required for
    18  executive sessions of the commission.
    19     (e)  All action taken by the commission shall be taken in
    20  open public session, and action of the commission shall not be
    21  taken except upon the affirmative vote of a majority of the
    22  members of the commission present during meetings at which a
    23  quorum is present.
    24     (f)  The commission shall adopt bylaws, not inconsistent with
    25  this article, and may appoint such committees or elect such
    26  officers as it deems advisable.
    27     (g)  The members of the commission shall not receive a salary
    28  or per diem allowance for serving as members of the commission
    29  but shall be reimbursed for actual and necessary expenses
    30  incurred in the performance of their duties. Reimbursement may
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     1  include travel and living expenses while engaged in commission
     2  business.
     3     Section 1306-B.  Powers and Duties.--(a)  The commission
     4  shall have the power to:
     5     (1)  Create a pilot project authorizing students to attend
     6  schools selected by their parents.
     7     (2)  Oversee the selection of participating school districts
     8  in the pilot project.
     9     (3)  Monitor implementation and progress of the pilot
    10  project.
    11     (4)  Collect and assimilate pertinent data on the feasibility
    12  of a Statewide school choice program.
    13     (5)  Report its findings, conclusions and recommendations to
    14  the Governor and General Assembly upon completion of the pilot
    15  project on the feasibility of a Statewide school choice program.
    16     (6)  Employ an executive director, legal counsel,
    17  investigators and other staff necessary to comply with the
    18  provisions of this article and regulations promulgated
    19  thereunder, and to engage professional consultants, as it deems
    20  necessary to perform its duties.
    21     (7)  Fix the compensation of all employees and prescribe
    22  their duties.
    23     (8)  Make and execute contracts and other instruments,
    24  including those for purchase of services and purchase or leasing
    25  of equipment and supplies, necessary or convenient to the
    26  exercise of the powers of the commission.
    27     (9)  Conduct examinations, investigations and audits.
    28     (10)  Hear testimony and take proof, under oath or
    29  affirmation, at public or private hearings, on any matter
    30  necessary to its duties.
    19990S0324B0331                  - 6 -

     1     (11)  Do all things necessary to carry out its duties under
     2  the provisions of this article.
     3     (b)  The commission may, in a manner provided by law,
     4  promulgate rules and regulations necessary to carry out its
     5  duties under this article.
     6     Section 1307-B.  Pilot Project.--(a)  (1)  The following
     7  school districts shall participate in a pilot project for school
     8  choice for a four-year period:
     9     (i)  Philadelphia.
    10     (ii)  Chester - Upland.
    11     (iii)  Aliquippa.
    12     (iv)  Duquesne.
    13     (v)  Harrisburg.
    14     (vi)  Reading.
    15     (vii)  Wilkensburg.
    16     (2)  The commission shall establish criteria for and select
    17  such other suburban and rural school districts, not to exceed a
    18  total of four, as it deems appropriate to participate in the
    19  pilot project.
    20     (b)  The commission shall monitor the project in
    21  participating school districts for a period of four (4) school
    22  years and collect pertinent information and data on the
    23  educational and fiscal feasibility and effectiveness of the
    24  school choice pilot project. No grants, as provided in section
    25  1310-B, shall be awarded following completion of the pilot
    26  project, except as provided in subsection (d).
    27     (c)  The commission shall provide a public comment and review
    28  process, based upon the experience and impact of the four-year
    29  pilot project in the participating districts, formulate
    30  conclusions and issue a report with recommendations to the
    19990S0324B0331                  - 7 -

     1  Governor and the General Assembly by December 31 of the year
     2  following completion of the project.
     3     (d)  Upon completion and issuance of the report to the
     4  Governor and the General Assembly, the pilot project may be
     5  retained or expanded only upon act of the General Assembly.
     6     Section 1308-B.  School Selection.--(a)  In accordance with
     7  and pursuant to section 1307-B, every public school student in
     8  the participating school districts shall be permitted to attend
     9  a public school selected by the student's parents or guardians,
    10  unless:
    11     (1)  the school selected has no additional attendance slots
    12  available and the district so notifies the department and the
    13  student within time limitations to be adopted by the office; or
    14     (2)  the student's attendance would place either the
    15  receiving school district or the selected district in violation
    16  of a valid and binding desegregation order. Nothing in this
    17  section shall preclude a school district from establishing
    18  additional academic criteria for admission to any magnet school
    19  within the district.
    20     (b)  No later than April 1 of each year of the pilot project,
    21  the parent or parents having legal responsibility for a school-
    22  age student attending or about to attend a public school shall
    23  designate the public school which that student shall attend
    24  during the succeeding school year, together with up to two
    25  alternative choices of schools. If a designation is not timely
    26  made or if the designation cannot be honored, the participating
    27  district shall determine the school to which the student shall
    28  be assigned within the district.
    29     Section 1309-B.  Office of Educational Opportunity.--There is
    30  hereby established within the department the Office of
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     1  Educational Opportunity, which shall administer the pilot
     2  project in accordance with and pursuant to sections 1308-B and
     3  1310-B. The office shall fully cooperate with and be advised by
     4  the commission.
     5     Section 1310-B.  Grant Awards.--The office shall, for the
     6  period of the pilot project, award grants to parents of eligible
     7  students according to the following terms and conditions:
     8     (1)  Grants shall be made only for use for the payment of
     9  tuition at a public or nonprofit nonpublic school within this
    10  Commonwealth.
    11     (2)  For the first year of the pilot project, the grant shall
    12  be the lesser of seven hundred dollars ($700) for children in
    13  kindergarten through grade eight (8) and one thousand dollars
    14  ($1,000) for children in grades nine (9) through twelve (12), or
    15  an amount equal to ninety percent (90%) of the actual amount of
    16  tuition paid or to be paid by the parent for a program of
    17  kindergarten or basic education for an eligible student. For
    18  each school year subsequent to the first year of the pilot
    19  project, the maximum amount of the grant under this section
    20  shall be increased by a percentage factor equal to the
    21  percentage increase in the State appropriation for the equalized
    22  subsidy for basic education, as defined under Article XXV.
    23     (3)  Prior to making any grant, the office shall require a
    24  parent of each eligible student to make application for the
    25  grant and to submit the verified statement of the educational
    26  institution or school district which will provide the
    27  educational program for which the grant is sought, attesting to
    28  the enrollment by the student in the school involved and to the
    29  amount of the tuition for the program.
    30     (4)  The office shall establish reasonable deadline dates for
    19990S0324B0331                  - 9 -

     1  submission of applications for grants and shall make the grants
     2  no later than fifteen (15) days prior to the beginning of the
     3  school year for which the grant will be utilized.
     4     (5)  Grants shall be made in the form of certificates
     5  delivered to the parents and shall be used solely for the
     6  purpose of paying tuition at the educational institution or
     7  school district designated in the grant application as the
     8  school of choice.
     9     (6)  Within fifteen (15) days after the beginning of the
    10  basic kindergarten or education program, the educational
    11  institution or school district shall confirm in writing to the
    12  office that the student for whom the grant has been made is in
    13  attendance at the school of choice. The school or school
    14  district, or the designated agent of either, may then present
    15  the grant certificate to the office for redemption.
    16     Section 1311-B.  Subsidy Credit; Tuition; Balance.--(a)  In
    17  addition to the grant awarded to an eligible public school
    18  student attending a public school outside his selected district,
    19  an amount equal to the greater of the per pupil equalized
    20  subsidy for basic education, as defined in Article XXV, in the
    21  student's selected district or of the receiving district shall
    22  be credited toward the tuition charged to that student by the
    23  receiving district. Should the grant plus the subsidy credit
    24  exceed the receiving district's tuition charge, the grant shall
    25  be reduced by the amount in excess of the tuition charge. Should
    26  the grant plus the subsidy credit not be sufficient to meet the
    27  full amount of the receiving district's tuition charge, an
    28  amount equal to ten percent (10%) of the balance of the charge
    29  still remaining shall be payable by the eligible child's parents
    30  and, when paid, shall be treated, along with the grant and the
    19990S0324B0331                 - 10 -

     1  subsidy credit, as payment in full of the receiving district's
     2  tuition charge. In the case of a child who is ineligible for a
     3  grant by reason of the income limitation on eligibility, only
     4  the subsidy credit authorized by this subsection shall be
     5  credited toward the receiving district's tuition charge, and the
     6  balance of the tuition charge shall be payable by the child's
     7  parents.
     8     (b)  The Commonwealth shall pay to each school district which
     9  accepts a nonresident student on a tuition basis an amount equal
    10  to the greater of the per pupil equalized subsidy for basic
    11  education, as defined in Article XXV, of the selected district
    12  or of the receiving district. No student attending a public
    13  school outside of the selected district shall be included in the
    14  average daily membership for purposes of determining the
    15  equalized subsidy for basic education in either the receiving
    16  district or the selected district.
    17     (c)  During the period of the pilot project, the Commonwealth
    18  shall also pay an additional five hundred dollars ($500) per
    19  year to any participating district eligible for small district
    20  assistance under section 2502.13 on account of any eligible
    21  student who transfers from the participating district to a
    22  nonpublic school, so long as that student continues to reside in
    23  the district and continues to attend a nonpublic school.
    24     Section 1312-B.  Available Attendance Slots.--Each school
    25  district, within a certain geographical radius of participating
    26  districts as set by the office, shall determine the number of
    27  available attendance slots at each of its schools and report
    28  that number to the office each year by a date to be established
    29  by the office. In determining the number of attendance slots
    30  available each such school district shall make provision for the
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     1  accommodation of any resident of the district who desires to
     2  attend a public school in the district and, after making
     3  provision for the attendance of resident students, shall
     4  thereafter give first preference to nonresident students who
     5  were in attendance in the district's schools during the school
     6  year immediately preceding the school year for which the
     7  availability of slots is being determined. Should any attendance
     8  slots thereafter remain available, the slots shall be allocated
     9  by the district on a random basis to all qualified applicants
    10  who have made timely application for the attendance slots
    11  pursuant to this article.
    12     Section 1313-B.  Regulatory Authority.--The State Board of
    13  Education, upon approval of the office and the commission, shall
    14  by regulation prescribe such further procedures as are needed
    15  for the establishment and operation of the pilot project, for
    16  subsidy credits and payments authorized in this article, and for
    17  assisting school districts in developing and disseminating
    18  public information concerning the choice program. Nothing in
    19  this section shall be construed to empower the Commonwealth, or
    20  any of its agencies or officers or subdivisions, to impose on
    21  any school any additional requirements which are not otherwise
    22  authorized under the laws of this Commonwealth.
    23     Section 1314-B.  Apportionment of Funds.--In the event that,
    24  in the fiscal year beginning July 1, 1999, or any fiscal year
    25  thereafter during the period of the pilot project, the funds
    26  appropriated for purposes of the project authorized by this
    27  article shall be insufficient to award grants in the total
    28  amount for which applications are made, the office shall award
    29  such grants in amounts which shall reflect the relative
    30  proportions of eligible students and available funds.
    19990S0324B0331                 - 12 -

     1     Section 1315-B.  Tax Treatment.--No grant awarded under this
     2  article shall be considered income to the recipient for State
     3  income tax purposes.
     4     Section 1316-B.  Audit.--Each nonpublic school which accepts
     5  students who have received educational opportunity grants shall
     6  cause an annual audit of its financial records to be prepared by
     7  an independent auditor in accordance with generally accepted
     8  accounting procedures and shall make the audit available upon
     9  request for inspection by the parents of students who attend the
    10  school or who are applying for admission to the school.
    11     Section 1317-B.  Mandatory Enrollment.--A nonpublic school
    12  may not be compelled or required to permit students enrolled in
    13  the school to accept educational opportunity grants.
    14     Section 2.  Section 2509.3 of the act, amended April 27, 1998
    15  (P.L.270, No.46), is amended to read:
    16     Section 2509.3.  Payments on Account of Transportation of
    17  Nonpublic and Public School Pupils.--Each school district,
    18  regardless of classification, shall be paid by the Commonwealth
    19  the sum of thirty-five dollars ($35) for each nonpublic school
    20  pupil transported in the school year 1978-1979 through the
    21  school year 1983-1984. For the school year 1984-1985 through the
    22  school year 1989-1990, each school district shall be paid the
    23  sum of seventy dollars ($70) for each nonpublic school pupil
    24  transported. For the school years 1990-1991 and 1991-1992, each
    25  school district shall be paid the sum of one hundred twenty-four
    26  dollars ($124) for each nonpublic school pupil transported. For
    27  the school year 1992-1993 and the 1993-1994 school year, each
    28  school district shall be paid the sum of one hundred fifty-nine
    29  dollars ($159) for each nonpublic school pupil transported. For
    30  the school year 1994-1995 through the school year 1996-1997,
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     1  each school district shall be paid the sum of two hundred
     2  dollars ($200) for each nonpublic school pupil transported. For
     3  the school year 1997-1998 and each school year thereafter, each
     4  school district shall be paid the sum of two hundred eighty-five
     5  dollars ($285) for each nonpublic school pupil transported and
     6  for each public school pupil transported to a public school
     7  outside the district under Article XIII-B.
     8     Section 3.  (a)  The sum of $300,000, or as much thereof as
     9  may be necessary, is hereby appropriated to the Department of
    10  Education to establish and operate the Office of Educational
    11  Opportunity.
    12     (b)  The sum of $300,000, or as much thereof as may be
    13  necessary, is hereby appropriated to the Department of Education
    14  to establish and operate the School Choice Exploratory
    15  Commission.
    16     Section 4.  Except for those provisions establishing the
    17  School Choice Exploratory Commission and the Office of
    18  Educational Opportunity and providing for the adoption of
    19  regulations and other standards necessary for the administration
    20  of Article XIII-B of the act which shall apply immediately,
    21  Article XIII-B of the act shall apply to all school years or
    22  programs commencing after August 15, 1999.
    23     Section 5.  In the event that a constitutional amendment is
    24  not approved, authorizing private vouchers for use by students
    25  in nonpublic schools, this act shall apply only to public
    26  schools.
    27     Section 6.  This act shall take effect immediately.


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