24 Pa. Stat. § 20-2002-B

Current through Pa Acts 2024-53, 2024-56 through 2024-92

Section 20-2002-B - 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:

"Applicable taxes." Any of the taxes due under Article III, IV, VI, VII, VIII, IX, XV or XX 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.

"Applicant." An eligible student who applies for a scholarship.

"Assessment." The Pennsylvania system of school assessment test, the keystone exam, an equivalent local assessment or another test established or approved by the state board of education or the general assembly to meet the requirements of section 2603-B(d)(10)(i), or required under the every student succeeds act ( Public Law 114-95, 129 stat. 1802) or its successor statute or another test required to achieve other standards established by the department of education for the public school or school district under 22 PA. Code § 403.3 (relating to single accountability system).

"Attendance boundary." A geographic area of residence used by a school district to assign a student to a public school.

"Average daily membership." As defined in section 2501(3).

"Business firm." An entity authorized to do business in this commonwealth and subject to taxes imposed under Article III, IV, VI, VII, VIII, IX, XV or XX of the tax reform code of 1971 or a tax under Article XVI of the insurance company law of 1921. The term includes a pass-through entity, including a pass-through entity, the purpose of which is the making of contributions under this article and whose shareholders, partners or members are composed of owners or employes of other business firms.

"Career and technical school." A public secondary school established under the provisions of Article XVIII.

"Contribution." A donation of cash, personal property or services, the value of which is the net cost of the donation to the donor or the pro rata hourly wage, including benefits, of the individual performing the services.

"Department." The department of community and economic development of the commonwealth.

"Economically disadvantaged school." Any school within this Commonwealth at which at least 51% of the students attending the school in the immediately preceding school year received a scholarship of at least $1,000 pursuant to this article.

"Educational improvement organization." A nonprofit entity which:

(1) Is exempt from federal taxation under section 501(c) (3) of the Internal Revenue Code of 1986 ( Public Law 99-514, 26 U.S.C. § 1 et seq.); and

(2) Contributes at least 90% of its annual receipts as grants to a public school, a chartered school as defined in section 1376.1, or a private school approved under section 1376, for innovative educational programs.

For purposes of this definition, a nonprofit entity "Contributes" its annual cash receipts when it expends or otherwise irrevocably encumbers those funds for expenditure during the then current fiscal year of the nonprofit entity or during the next succeeding fiscal year of the nonprofit entity. A nonprofit entity shall include a school district foundation, public school foundation, charter school foundation or cyber charter school foundation.

"Elementary school." A school which is not a secondary school.

"Eligible pre-kindergarten student." A student, including an eligible student with a disability, who is enrolled in a pre-kindergarten program and is a member of a household with a maximum annual household income as increased by the applicable income allowance.

"Eligible student." A school-age student, including an eligible student with a disability, who is enrolled in a school and is a member of a household with a maximum annual household income as increased by the applicable income allowance.

"Eligible student with a disability." A pre-kindergarten student or a school-age student who meets all of the following:

(1) Is enrolled in a special education school or has otherwise been identified, in accordance with 22 PA. Code ch. 14 (relating to special education services and programs), as a "Child with a disability," as defined in 34 CFR § 300.8 (relating to child with a disability).

(2) Needs special education and related services.

(3) Is enrolled in a pre-kindergarten program or in a school.

(4) Is a member of a household with a household income of not more than the maximum annual household income.

"Fiscal year." The Commonwealth's fiscal year beginning July 1 and ending June 30.

"Household." An individual living alone or with the following: A spouse, parent and their unemancipated minor children, other unemancipated minor children who are related by blood or marriage or other adults or unemancipated minor children living in the household who are dependent upon the individual.

"Household income." All money or property received of whatever nature and from whatever source derived. The term does not include the following:

(1) Periodic payments for sickness and disability other than regular wages received during a period of sickness or disability.

(2) Disability, retirement or other payments arising under workers' compensation acts, occupational disease acts and similar legislation by any government.

(3) Payments commonly recognized as old-age or retirement benefits paid to persons retired from service after reaching a specific age or after a stated period of employment.

(4) Payments commonly known as public assistance or unemployment compensation payments by a governmental agency.

(5) Payments to reimburse actual expenses.

(6) Payments made by employers or labor unions for programs covering hospitalization, sickness, disability or death, supplemental unemployment benefits, strike benefits, social security and retirement.

(7) Compensation received by united states servicemen serving in a combat zone.

(8) Payments received from a governmental agency to relieve the economic effects of the COVID-19 pandemic.

"Income allowance." The base amount of $15,000 for each eligible student, eligible pre-kindergarten student and dependent member of the household. Beginning July 1, 2014, the department shall annually adjust the base amount to reflect upward changes in the consumer price index for all urban consumers for the Pennsylvania, New Jersey, Delaware and Maryland area for the preceding 12 months. The department shall immediately submit the adjusted amounts to the legislative reference bureau for publication as a notice in the Pennsylvania bulletin.

"Innovative educational program." An advanced academic or similar program that is not part of the regular academic program of a public school but that enhances the curriculum or academic program of the public school, chartered school or private school or provides pre-kindergarten programs to public school students, students of a chartered school or students of a private school. For the purposes of this definition, a chartered school shall mean a chartered school as defined in section 1376.1, and a private school shall mean a private school approved under section 1376.

"Kindergarten." A one-year formal educational program that occurs during the school year immediately prior to first grade. The term includes a part-time and a full-time program.

"Low-achieving school." A public school that ranked in the lowest 15% of the school's designation as an elementary school or a secondary school based on combined mathematics and reading scores from the annual assessment administered in the previous school year and for which the department of education has posted results on the department of education's publicly accessible internet website. The term does not include a charter school, cyber charter school or area career and technical school.

"Maximum annual household income."

(1) Subject to adjustment under paragraphs (2) and (3), the amount of $90,000, plus the applicable income allowance.

(2) With respect to an eligible student with a disability, as calculated by multiplying:

(i) The applicable amount under paragraph (1); by

(ii) The applicable support level factor according to the following table:

Support level	Support level factor
1	1.50
2	2.993

(3) Beginning july 1, 2014, the department shall annually adjust the income amounts under paragraphs (1) and (2) to reflect any upward changes in the consumer price index for all urban consumers for the pennsylvania, new jersey, delaware and maryland area in the preceding 12 months and shall immediately submit the adjusted amounts to the legislative reference bureau for publication as a notice in the pennsylvania bulletin.

"Nonpublic school." A school which is a nonprofit organization and which is located in this commonwealth. The term does not include a public school.

"Opportunity scholarship." An award given to an applicant to pay tuition and school-related fees necessary to attend a participating nonpublic school or a participating public school located in a school district which is not the recipient's school district of residence.

"Opportunity scholarship organization." A nonprofit entity which:

(1) Is exempt from federal taxation under section 501(c) (3) of the internal revenue code of 1986 ( Public Law 99-514, 26 U.S.C. § 1 et seq.); and

(2) Contributes at least 90% of the entity's annual cash receipts to an Opportunity Scholarship Program or at least 85% of the annual cash receipts if the entity reports an annual IRS program expense percentage of greater than 90% on its IRS 990 tax filing.

For the purposes of this definition, a nonprofit entity contributes the entity's cash receipts to an opportunity scholarship program when the entity expends or otherwise irrevocably encumbers those funds for distribution during the then-current fiscal year of the nonprofit entity or during the next succeeding fiscal year of the nonprofit entity.

"Opportunity scholarship program." A program to provide opportunity scholarships to eligible students who reside within the attendance area of a low-achieving school.

"Parent." An individual who:

(1) Is a resident of this commonwealth; and

(2) Either:

(i) Has legal custody or guardianship of a student; or

(ii) Keeps in the individual's home a student and supports the student gratis as if the student were a lineal descendant of the individual.

"Participating nonpublic school." A nonpublic school which notifies the department of education under section 2011-B that the school wishes to accept opportunity scholarship recipients.

"Participating public school." A public school in a school district which notifies the department of education under section 2011-B that the school wishes to accept opportunity scholarship recipients. The term does not include a low-achieving school.

"Pass-through entity." A partnership as defined in section 301(n.0) of act of march 4, 1971 ( P.L. 6, No.2), known as the tax reform code of 1971, a single-member limited liability company treated as a disregarded entity for federal income tax purposes or a pennsylvania s corporation as defined in section 301(n.1) of the tax reform code. The term includes a pass-through entity that owns an interest in a pass-through entity. The term also includes a qualified subchapters trust.

"Pre-kindergarten program." A program of instruction for three-year-old, four-year-old, five-year-old or six-year-old students, other than a kindergarten, that utilizes a curriculum aligned with the curriculum of the school with which it is affiliated and which provides one of the following:

(1) A minimum of two hours of instructional and developmental activities per day at least 60 days per school year.

(2) A minimum of two hours of instructional and developmental activities per day at least 20 days over the summer recess.

"Pre-kindergarten scholarship organization." A nonprofit entity which:

(1) Is exempt from federal taxation under section 501(c) (3) of the internal revenue code of 1986 or is operated as a separate segregated fund by a scholarship organization that has been qualified under section 2003-B; and

(2) Contributes at least 90% of its annual cash receipts to a Pre-kindergarten Scholarship Program by expending or otherwise irrevocably encumbering those funds for distribution during the then-current fiscal year of the organization or during the next succeeding fiscal year of the organization or at least 85% of the annual cash receipts if the entity reports an annual IRS program expense percentage of greater than 90% on its IRS 990 tax filing.

"Pre-kindergarten scholarship program." A program to provide tuition to eligible pre-kindergarten students to attend a pre- kindergarten program operated by or in conjunction with a school located in this commonwealth and that includes an application and review process for the purpose of making awards to eligible pre-kindergarten students and awards scholarships to eligible pre-kindergarten students without limiting availability to only students of one school or one building within a school district or nonpublic school entity.

"Public school." A public pre-kindergarten where compulsory attendance requirements do not apply or a public kindergarten, elementary school, secondary school or career and technical school at which the compulsory attendance requirements of this commonwealth may be met and which meets the applicable requirements of title vi of the civil rights act of 1964 ( Public Law 88-352, 78 stat. 241).

"Qualified subchapter s trust." As defined in section 1361(D)(3) of the internal revenue code of 1986.

"Recipient." An applicant who receives a scholarship.

"Scholarship." An award under a scholarship program to pay tuition and school-related fees to attend a school.

"Scholarship organization." A nonprofit entity which:

(1) Is exempt from federal taxation under section 501(c) (3) of the internal revenue code of 1986; and

(2) Contributes at least 90% of its annual cash receipts to a scholarship program or at least 85% of the annual cash receipts if the entity reports an annual IRS program expense percentage of greater than 90% on its IRS 990 tax filing.

For purposes of this definition, a nonprofit entitycontributes Its annual cash receipts to a scholarship program when it expends or otherwise irrevocably encumbers those funds for distribution during the then current fiscal year of the nonprofit entity or during the next succeeding fiscal year of the nonprofit entity.

"Scholarship program." A program to provide tuition and school-related fees to eligible students to attend a school located in this commonwealth. A scholarship program must include an application and review process for the purpose of making awards to eligible students. The award of scholarships to eligible students shall be made without limiting availability to only students of one school or one building within a school district or nonpublic school entity.

"School." A public or nonpublic pre-kindergarten, kindergarten, elementary school or secondary school at which the compulsory attendance requirements of the commonwealth may be met and which meets the applicable requirements of title vi of the civil rights act of 1964.

"School age." Children from the earliest admission age to a school's pre-kindergarten or kindergarten program or, when no pre-kindergarten or kindergarten program is provided, the school's earliest admission age for beginners, until the end of the school year the student attains 21 years of age or graduation from high school, whichever occurs first.

"School district of residence." The school district in which the student's primary domicile is located.

"School-related fees." Fees charged by a school to all students for books, instructional materials, technology equipment and services, uniforms , activities and concurrent enrollment programs under article XVI-B.

"Secondary school." A school with an eleventh grade.

"Special education school." A school or program within a school that is designated specifically and exclusively for students with any of the disabilities listed in 34 CFR § 300.8 and meets one of the following:

(1) Is licensed under the act of january 28, 1988 ( P.L. 24, No.11), known as the private academic schools act.

(2) Is accredited by an accrediting association approved by the state board of education.

(3) Is a school for the blind or deaf receiving commonwealth appropriations.

(4) Is operated by or under the authority of a bona fide religious institution or by the commonwealth or any political subdivision thereof.

"Student." An individual who meets all of the following:

(1) Is school age.

(2) Is a resident of this commonwealth.

(3) Attends or is about to attend a school.

"Support level." The level of support needed by an eligible student with a disability, as set forth in the following matrix:

Support level 1 - the student is not enrolled in a special education school.

Support level 2 - the student is enrolled as a student in a special education school.

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

"Tax year." A taxpayer's annual accounting period or, if a return is made for a period of less than 12 months, the period for which the return is made.

24 P.S. § 20-2002-B

Amended by P.L. (number not assigned at time of publication) 2023 No. 35,§ 10.1, eff. 12/13/2023.

Amended by P.L. TBD 2023 No. 33,§ 25.1, eff. 12/13/2023.

Amended by P.L. TBD 2022 No. 55, § 37, eff. 7/8/2022.

Amended by P.L. TBD 2019 No. 76, § 54, eff. 12/30/2019.

Amended by P.L. TBD 2019 No. 16, § 10, eff. 7/1/2019.

Amended by P.L. TBD 2018 No. 39, § 13, eff. 7/1/2018.

Added by P.L. 716 2016 No. 86, § 13, eff. 7/13/2016.