An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in pupils and attendance, providing for personalized education program; providing for student freedom accounts; and establishing the Student Freedom Account Program.

PRINTER'S NO. 1403
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1258
Session of
2025
INTRODUCED BY D'ORSIE, HAMM, KAUFFMAN, BOROWICZ, SCIALABBA,
ROWE, ANDERSON, LEADBETER AND FINK, APRIL 17, 2025
REFERRED TO COMMITTEE ON EDUCATION, APRIL 17, 2025
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," in pupils and attendance, providing
for personalized education program; providing for student
freedom accounts; and establishing the Student Freedom
Account Program.
This act shall be known and may be cited as the Student
Freedom Account Act.
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 a
section to read:
Section 1327.4. Personalized Education Program.--(a) The
requirements contained in sections 1511 and 1511.1, except as
provided for in this section, and section 1605 shall not apply
to personalized education programs.
(b) A personalized education program shall not be considered
a nonpublic school under the provisions of this act.
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(c) The following apply to an affidavit of the parent or
guardian or other person having legal custody of a child who
will participate in a personalized education program:
(1) The affidavit shall be filed with the superintendent of
the school district of residence of the child prior to the
commencement of the personalized education program and annually
thereafter no later than August 1.
(2) The affidavit shall include:
(i) The name of the supervisor of the personalized education
program who shall be responsible for ensuring the provision of
instruction.
(ii) The name and age of the child.
(iii) The address and telephone number of the personalized
education program site.
(iv) A statement that the subjects as required by law will
be offered in the English language, including an outline of
proposed education objectives by subject area. The
superintendent may not use the required outline of proposed
education objectives in determining whether the personalized
education program is out of compliance with this section and
section 1327.
(v) Evidence that the child has been immunized in accordance
with the provisions of section 1303(a) and has received the
health and medical services required for students of the child's
age or grade level under Article XIV.
(vi) A statement that the personalized education program
shall comply with the provisions of this section and that the
affidavit shall be satisfactory evidence thereof.
(vii) A certification to be signed by the supervisor that
the supervisor, all adults living in the home and persons having
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legal custody of the child have not been convicted of the
criminal offenses enumerated in section 111(e) within five years
immediately preceding the date of the affidavit.
(3) The affidavit may contain information for more than one
child.
(d) If a personalized education program site is relocating
to another school district within this Commonwealth during the
course of the public school term or prior to the opening of the
public school term in the fall, the supervisor of the
personalized education program shall apply, by certified mail,
within thirty (30) days prior to the relocation, to the
superintendent of the district in which the supervisor currently
resides, requesting a letter of transfer for the personalized
education program to the district to which the personalized
education program is relocating. The following apply:
(1) The current superintendent of residence shall issue the
letter of transfer within thirty (30) days after receipt of the
certified mail request of the supervisor of the personalized
education program.
(2) If the personalized education program is not in
compliance with the provisions of this section, the
superintendent of the current district of residence shall inform
the supervisor of the personalized education program and the
superintendent of the district to which the personalized
education program is relocating the status of the personalized
education program and the reason for the denial of the letter of
transfer.
(3) If the personalized education program is in hearing
procedures, as contained in this section, the superintendent of
the current district of residence shall inform the supervisor of
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the personalized education program, the assigned hearing
examiner and the superintendent of the district to which the
personalized education program is relocating the status of the
personalized education program and the reason for the denial of
the letter of transfer.
(4) The letter of transfer must be filed by the supervisor
of the personalized education program with the superintendent of
the new district of residence. In the case of pending
proceedings, the superintendent of the new district of residence
shall continue the personalized education program until the
appeal process is finalized.
(e) A child who is enrolled in a personalized education
program and whose education is therefore under the direct
supervision of the parent or guardian or other person having
legal custody of the child shall be deemed to have met the
requirements of section 1327 if the personalized education
program provides a minimum of one hundred eighty (180) days of
instruction or nine hundred (900) hours of instruction per year
at the elementary level or nine hundred ninety (990) hours per
year at the secondary level. The following apply regarding
courses:
(1) At the elementary school level, the following courses
shall be taught:
(i) English, to include spelling, reading and writing.
(ii) Arithmetic.
(iii) Science.
(iv) Geography.
(v) History of the United States and Pennsylvania.
(vi) Civics.
(vii) Safety education, including regular and continuous
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instruction in the dangers and prevention of fires.
(viii) Health and physiology.
(ix) Physical education.
(x) Music.
(xi) Art.
(2) At the secondary school level, the following courses
shall be taught:
(i) English, to include language, literature, speech and
composition.
(ii) Mathematics, to include general mathematics, algebra
and geometry.
(iii) Science
(iv) Geography.
(v) Social studies, to include civics, world history,
history of the United States and history of Pennsylvania.
(vi) Safety education, including regular and continuous
instruction in the dangers and prevention of fires.
(vii) Health.
(viii) Physical education.
(ix) Music.
(x) Art.
(3) The courses under paragraph (2) may include, at the
discretion of the supervisor of the personalized education
program:
(i) Economics.
(ii) Biology.
(iii) Chemistry.
(iv) Foreign languages.
(v) Trigonometry.
(vi) Other age-appropriate courses as contained in 22 Pa.
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Code Ch. 4 (relating to academic standards and assessment).
(f) The following minimum courses in grades nine through
twelve are established as a requirement for graduation in a
personalized education program:
(1) Four years of English.
(2) Three years of mathematics.
(3) Three years of science.
(4) Three years of social studies.
(5) Two years of arts and humanities.
(g) The following apply to diplomas:
(1) A high school diploma awarded by a supervisor or an
approved diploma-granting organization shall be considered as
having all the rights and privileges afforded by the
Commonwealth, a Commonwealth agency, including the Pennsylvania
Higher Education Assistance Agency, a political subdivision, a
local agency and an authority or instrumentality of the
Commonwealth or a political subdivision to a high school diploma
awarded under this act, subject to subparagraphs (i) and (ii).
The following apply regarding diplomas:
(i) In the case of a diploma awarded by a supervisor:
(A) The student receiving the diploma shall have completed
all the requirements in subsection (f) while enrolled in a
personalized education program that is in compliance with this
section.
(B) The diploma shall be awarded to the student on a
standardized form to be developed by the department and which
shall be made available on the publicly accessible Internet
website of the department.
(C) The diploma shall be signed by the student's twelfth
grade evaluator in confirmation of the student's suitability for
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graduation.
(ii) In the case of a diploma awarded by an approved
diploma-granting organization:
(A) The student receiving the diploma shall have completed
all the requirements in subsection (f) while enrolled in a
personalized education program that is in compliance with this
section.
(B) The diploma shall be awarded to the student on a
standardized form to be developed by the organization.
(2) The department shall establish eligibility criteria and
an application process for approving diploma-granting
organizations to award high school diplomas to students enrolled
in personalized education programs. The department shall
maintain a list of approved diploma-granting organizations and
post the list on the publicly accessible Internet website of the
department.
(h) To demonstrate that appropriate education is occurring,
the supervisor of the personalized education program shall
provide and maintain on file the following documentation for
each student enrolled in the personalized education program:
(1) A portfolio of records and materials. The following
apply:
(i) The portfolio shall consist of a log, made
contemporaneously with the instruction, which designates by
title the reading materials used, samples of any writings,
worksheets, workbooks or creative materials used or developed by
the student and, in grades three, five and eight, results of
nationally normed standardized achievement tests in reading and
language arts and mathematics or the results of Statewide tests
administered in these grade levels.
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(ii) The department shall establish a list, with at least
five nationally normed standardized achievement tests from which
the supervisor of the personalized education program shall
select a test to be administered if the supervisor does not
choose the Statewide tests.
(iii) At the discretion of the supervisor, the portfolio may
include the results of nationally normed standardized
achievement tests for other subject areas or grade levels.
(iv) The supervisor shall ensure that the nationally normed
standardized achievement tests or the Statewide tests shall not
be administered by the parent or guardian or other person having
legal custody of the child.
(v) A teacher or administrator who evaluates a portfolio at
the elementary level, for grades kindergarten through six, shall
have at least two years of experience in grading any of the
following subjects:
(A) English, to include spelling, reading and writing.
(B) Arithmetic.
(C) Science.
(D) Geography.
(E) History of the United States and Pennsylvania.
(F) Civics.
(vi) A teacher or administrator who evaluates a portfolio at
the secondary level, for grades seven through twelve, shall have
at least two years of experience in grading any of the following
subjects:
(A) English, to include language, literature, speech,
reading and composition.
(B) Mathematics, to include general mathematics, algebra,
trigonometry, calculus and geometry.
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(C) Science, to include biology, chemistry and physics.
(D) Geography.
(E) Social studies, to include economics, civics, world
history, history of the United States and history of
Pennsylvania.
(F) Foreign language.
(vii) As used in subparagraphs (v) and (vi), the term
"grading" shall mean evaluation of classwork, homework, quizzes,
classwork-based tests and prepared tests related to classwork
subject matter.
(2) An annual written evaluation of the student's
educational progress as determined by a licensed clinical or
school psychologist or a teacher certified by the Commonwealth
or by a nonpublic school teacher or administrator. The following
apply:
(i) The nonpublic teacher or administrator shall have:
(A) At least two years of teaching experience in a
Pennsylvania public or nonpublic school within the last ten
years.
(B) The required experience at the elementary level to
evaluate elementary students or at the secondary level to
evaluate secondary students.
(ii) The certified teacher shall have experience at the
elementary level to evaluate elementary students or at the
secondary level to evaluate secondary students.
(iii) The evaluation shall also be based on an interview of
the child and a review of the portfolio required in paragraph
(1) and shall certify whether or not an appropriate education is
occurring.
(iv) At the request of the supervisor, persons with other
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qualifications may conduct the evaluation with the prior consent
of the superintendent of the district of residence.
(v) An evaluator may not be the supervisor or the spouse of
the supervisor.
(i) The school district of residence shall, at the request
of the supervisor, lend to the personalized education program
copies of the school district's planned courses, textbooks and
other curriculum materials appropriate to the student's age and
grade level.
(j) The following apply to activities:
(1) The school district of residence shall permit a child
who is enrolled in a personalized education program to
participate in any activity that is subject to the provisions of
section 511, including clubs, musical ensembles, athletics and
theatrical productions, if the child:
(i) Meets the eligibility criteria or their equivalent for
participation in the activity that applies to students enrolled
in the school district.
(ii) Meets the tryout criteria or their equivalent for
participation in the activity that applies to students enrolled
in the school district.
(iii) Complies with all policies, rules and regulations or
their equivalent of the governing organization of the activity.
(2) For the purposes of this subsection, the school district
of residence's program of interscholastic athletics, including
varsity sports, shall be considered an activity and shall
include all activities related to competitive sports contests,
games, events or exhibitions involving individual students or
teams of students whenever the activities occur between schools
within the school district or between schools outside of the
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school district.
(3) If an activity requires completion of a physical
examination or medical test as a condition of participation and
the school district of residence offers the physical examination
or medical test to students enrolled in the school district, the
school district shall permit a child who is enrolled in a
personalized education program to access the physical
examination or medical test. The school district shall publish
the dates and times of the physical examination or medical test
in a publication of general circulation in the school district
and on the publicly accessible Internet website of the school
district.
(4) A board of school directors may adopt a policy to
implement the requirements of this subsection. The policy shall
only apply to participation in activities and shall not conflict
with any other provision of this section.
(k) The following apply:
(1) Beginning with the 2025-2026 school year and each school
year thereafter, the school district of residence:
(i) Shall develop policies and procedures to permit a child
who is enrolled in a personalized education program to
participate, on the same basis as other students enrolled in the
school district, in a cocurricular activity that merges
extracurricular activities with a required academic course,
including band or orchestra.
(ii) Must permit a child who is enrolled in a personalized
education program to participate in academic courses equaling up
to at least one quarter of the school day for full-time
students, pursuant to the policies and procedures of the school
district of residence, on the same basis as other students
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enrolled in the school district, if the child:
(A) Meets the eligibility criteria or their equivalent for
participation in the cocurricular or academic course that
applies to students enrolled full time in the school district.
(B) Meets the prerequisite criteria or their equivalent for
participation in the cocurricular or academic course that
applies to students enrolled full time in the school district.
(C) Complies with all policies, rules and regulations or
their equivalent of the school district of residence.
(2) For the purposes of this subsection, the school district
of residence shall provide the grade for each cocurricular or
academic course to the supervisor of the personalized education
program, who shall be responsible for maintaining the material
in the portfolio of records.
(3) The parent or legal guardian of the child shall be
responsible for transportation of the child to and from school
for the selected courses, except that a personalized education
program student may utilize district transportation to or from
school during the times a bus is otherwise already operating and
space is available.
(4) A board of school directors may adopt a policy to
implement the requirements of this subsection. A policy under
this paragraph may require that the cocurricular or academic
courses taken under paragraph (1) be taken consecutively during
the school day if the school or a child's parent or legal
guardian is not able to provide adequate supervision for the
child between cocurricular and academic courses. The policy
shall only apply to participation in cocurricular or academic
courses and shall not conflict with any provisions of this
section.
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(5) A personalized education program student enrolled in a
cocurricular or academic course in the student's school district
of residence shall be included in the average daily membership
of the school district of residence and shall pay the tuition
calculated by counting the time the personalized education
program student spends in the public school.
(l) The following apply:
(1) Beginning with the 2025-2026 school year and each school
year thereafter, the school district of residence shall develop
policies and procedures consistent with the enrollment or seat
allocation provisions of the written agreement among the
participating school districts that established the career and
technical education center, or in the case of a school-district-
operated career and technical education program, the school
district of residence shall develop policies and procedures
consistent with subsection (k), to permit a personalized
education program student to participate in a career and
technical education program on the same basis as other students
enrolled in the school district, if the child:
(i) Meets the eligibility criteria or their equivalent for
participation in the career and technical education program that
applies to students enrolled full time in the school district.
(ii) Meets the prerequisite criteria or their equivalent for
participation in the career and technical education program that
applies to students enrolled full time in the school district.
(iii) Complies with all policies, rules and regulations or
their equivalent of the school district of residence and the
career and technical education center.
(2) For the purposes of this subsection, the school-
district-operated career and technical education program or the
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career and technical education center shall provide the grades
to the personalized education program supervisor, who shall be
responsible for maintaining the material in the portfolio of
records.
(3) The personalized education program students may utilize
district transportation to or from the career and technical
education program during the times buses are otherwise already
operating and space is available.
(4) A board of school directors may adopt a policy to
implement the requirements of this subsection. The policy shall
only apply to participation in career and technical education
programs and shall not conflict with any provisions of this
section.
(5) A personalized education program student enrolled in the
career and technical education program shall be included in the
average daily membership of the school district of residence and
career and technical education center, if applicable, and shall
pay the tuition calculated by counting the time the personalized
education program student spends in the career and technical
education program.
(m) Nothing in subsections (k) and (l) shall prohibit a
school district or a career and technical education center from
establishing policies that prioritize participation in courses
or programs with limited seating or enrollment.
(n) When documentation is required by this section to be
submitted to a hearing examiner, the hearing examiner shall
return, upon completion of the review by the hearing officer,
all of the documentation to the supervisor of the personalized
education program. The hearing examiner may photocopy all or
portions of the documentation for the files of the hearing
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officer.
(o) An evaluator's certification stating that an appropriate
education is occurring for the school year under review shall be
provided by the supervisor to the superintendent of the school
district of residence by June 30 of each year. If the supervisor
fails to submit the certification due on June 30 to the
superintendent, the superintendent shall send a letter by
certified mail, return receipt requested, to the supervisor of
the personalized education program, stating that the
certification is past due and notifying the supervisor to submit
the certification within ten (10) days of receipt of the
certified letter. If the certification is not submitted within
that time, the board of school directors shall provide for a
proper hearing in accordance with subsection (r).
(p) If the superintendent has a reasonable belief, at any
time during the school year, that appropriate education may not
be occurring in the personalized education program, the
superintendent may submit a letter to the supervisor, by
certified mail, return receipt requested, requiring that an
evaluation be conducted in accordance with subsection (h)(2) and
that an evaluator's certification stating that an appropriate
education is occurring for the school year under review, be
submitted to the district by the supervisor within thirty (30)
days of the receipt of the certified letter. The following
apply:
(1) The certified letter shall include the basis for the
superintendent's reasonable belief.
(2) If the tests, as required in subsection (h)(1), have not
been administered at the time of the receipt of the certified
letter by the supervisor, the supervisor shall submit the other
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required documentation to the evaluator and shall submit the
test results to the evaluator with the completed documentation
at the conclusion of the school year.
(3) If the certification is not submitted to the
superintendent within thirty (30) days of receipt of the
certified letter, the board of school directors shall provide
for a proper hearing in accordance with subsection (r).
(q) If the superintendent has a reasonable belief that the
personalized education program is out of compliance with any
other provisions of this section, the superintendent shall
submit a letter to the supervisor by certified mail, return
receipt requested, requiring a certification to be submitted
within thirty (30) days indicating that the program is in
compliance. The following apply:
(1) The certified letter shall include the basis for the
superintendent's reasonable belief.
(2) If the certification is not submitted within thirty (30)
days of receipt of the certified letter, the board of school
directors shall provide for a proper hearing in accordance with
subsection (r).
(r) If a hearing is required by the provisions of subsection
(o), (p) or (q), the board of school directors shall provide for
a proper hearing by a duly qualified and impartial hearing
examiner within thirty (30) days. The following apply:
(1) The examiner shall render a decision within fifteen (15)
days of the hearing except that the examiner may require the
establishment of a remedial education plan mutually agreed to by
the superintendent and supervisor of the personalized education
program who shall continue the personalized education program.
(2) The decision of the examiner may be appealed by either
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the supervisor of the personalized education program or the
superintendent to the Secretary of Education, Commonwealth Court
or court of common pleas.
(s) If the hearing examiner finds that the evidence does not
indicate that appropriate education is taking place in the
personalized education program, the personalized education
program for the child shall be out of compliance with the
requirements of this section and section 1327, and the student
shall be promptly enrolled in the public school district of
residence, a nonpublic school or a licensed private academic
school. The personalized education program may continue during
the time of any appeal.
(t) At the time that the child's personalized education
program has been determined to be out of compliance with the
provisions of this section and section 1327, the supervisor and
spouse of the supervisor of the personalized education program
shall not be eligible to supervise a personalized education
program for that child for a period of twelve (12) months from
the date of the determination.
(u) Nothing in this section shall be construed to affect
Federal or State law relating to special education for students
with disabilities in personalized education programs.
(v) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Appropriate education" shall mean a program consisting of
instruction in the required subjects for the time required in
this act and in which the student demonstrates sustained
progress in the overall program.
"Department" shall mean the Department of Education of the
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Commonwealth.
"Hearing examiner" shall mean an individual who is not an
officer, employe or agent of the department or of the school
district or intermediate unit of residence of the child in the
personalized education program.
"Personalized education program" shall mean a program
conducted, in compliance with this section, by the parent or
guardian or other person having legal custody of the child.
"Supervisor" shall mean the parent or guardian or other
person having legal custody of the child who is responsible for
meeting the requirements of the student freedom account program
under Article XX-N and ensuring the provision of instruction,
provided that the person has a high school diploma or its
equivalent.
Section 2. The act is amended by adding an article to read:
ARTICLE XX-N
STUDENT FREEDOM ACCOUNTS
Section 2001-N. Scope of article.
This article relates to student freedom accounts.
Section 2002-N. 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:
"Applicant." A parent who applies for a student freedom
account under section 2004-N.
"Average daily membership." As defined in section 2501(3).
"Department." The Treasury Department of the Commonwealth.
"Eligible student." A school-age child whose parent has
entered into an agreement for a student freedom account under
section 2005-N.
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"I nstitution of higher education." As defined in section
118(c).
"Nonpublic school." A school, other than a public school,
located in this Commonwealth where a Commonwealth resident may
legally fulfill the compulsory attendance requirements of this
act, that complies with section 1521 and meets the applicable
requirements of Title VI of the Civil Rights Act of 1964 (Public
Law 88-352, 42 U.S.C. § 2000 et seq.).
"Parent." An individual who is a resident of the
Commonwealth and who, with respect to a school-age child:
(1) is a biological parent, adoptive parent or legal
guardian of the school-age child;
(2) has legal custody of the school-age child; or
(3) resides with the school-age child in the
individual's home and supports the school-age child gratis as
if the school-age child were a lineal descendant of the
individual.
"Participating entity." As follows:
(1) Any of the following from which a school-age child
receives instruction or support under this article:
(i) A nonpublic school for grades kindergarten
through 12, or a combination of grades.
(ii) An institution of higher education.
(iii) A distance learning program.
(iv) A tutor who:
(A) is a teacher licensed in any state;
(B) has tutored or taught at an eligible
postsecondary institution or an eligible nonpublic
school;
(C) is a subject matter expert;
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(D) is approved by the department; or
(E) is part of a tutoring agency that is
approved by the department.
(v) A counselor who is licensed or accredited by the
Commonwealth to work with school-age children.
(vi) A provider of personalized education services
or curriculum.
(2) The term does not include a parent of a school-age
child to the extent that the parent provides educational
services directly to the school-age child.
"Program." The Student Freedom Account Program established
under section 2003-N(a).
"Public school." A school district, charter school, cyber
charter school, regional charter school, intermediate unit or
area career and technical school.
"Qualified education expenses." Costs, fees and other
expenses for or associated with any of the following for an
eligible student:
(1) Tuition and school fees.
(2) Required uniforms.
(3) Textbooks.
(4) T utoring or other educational services provided by a
participating entity.
(5) A virtual education program or course.
(6) Services provided by a public school or public
charter school, including individual classes and
extracurricular programs.
(7) Transportation services for education purposes.
(8) Management of a student freedom account.
(9) Summer school.
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(10) Camps.
(11) After-school learning programs.
(12) Tuition, fees and textbooks at an eligible
postsecondary institution.
(13) A nationally norm-referenced test, advanced
placement or similar examination, standardized examination
required for admission to an institution of higher education,
area career and technical education examination or industry
certification examination.
(14) Curriculum, textbook or other instructional
materials.
(15) Hardware, software and Internet connectivity
associated with instruction.
(16) If the eligible student is a student with a
disability, special instruction or special services provided
to the eligible student, including occupational, physical,
speech or behavioral therapy.
(17) Evaluation and identification of special needs or a
student with special needs.
(18) Commonly used school supplies, including paper,
pens and pencils.
(19) Other items or materials incurred in the education
of the eligible student.
"School-age child." A child who:
(1) is enrolled in kindergarten through grade 12; and
(2) resides in this Commonwealth.
" Student freedom account." A spending account that is:
(1) Established and administered by the department in
accordance with this article.
(2) Controlled by a parent of a school-age child with
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money that may be spent on qualified education expenses.
"Student with special needs." Any of the following:
(1) A child who:
(i) is subject to an individualized education
program under the Individuals with Disabilities Education
Act (Public Law 91-230, 20 U.S.C. § 1400 et seq.) and 22
Pa. Code Ch. 14 (relating to special education services
and programs);
(ii) is subject to a section 504 service agreement
under section 504 of the Rehabilitation Act of 1973
(Public Law 93-112, 29 U.S.C. § 701 et seq.) and 22 Pa.
Code Ch. 15 (relating to protected handicapped students);
(iii) is subject to a gifted individualized
education plan under 22 Pa. Code Ch. 16 (relating to
special education for gifted students);
(iv) is eligible for early intervention services
under 55 Pa. Code § 4226.22 (relating to eligibility for
early intervention services); or
(v) meets the definition of "child with a
disability" under the Individuals with Disabilities
Education Act or meets the definition of a "handicapped
person" under section 504 of the Rehabilitation Act of
1973 and its implementing regulations under 34 CFR
104.3(j) (relating to definitions).
(2) The term includes a student for whom an evaluation
is pending under the Individuals with Disabilities Education
Act or the Rehabilitation Act of 1973.
Section 2003-N. Establishment and administration of Student
Freedom Account Program.
(a) Establishment.--The Student Freedom Account Program is
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established within the department to administer student freedom
accounts.
(b) Third-party administrators.--
(1) The d epartment may contract with a private third-
party administrator or multiple third-party administrators to
administer the program.
(2) (i) Except as provided in subparagraph (ii), if the
department chooses to contract with a private third-party
administrator to administer the program, the department
shall seek good faith bids from at least three
organizations.
(ii) Notwithstanding any provision of 62 Pa.C.S.
(relating to procurement), and in order to facilitate the
prompt implementation of this article, the department may
award a contract to a private third-party administrator
without competition if the department 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 department
shall provide and make publicly accessible a written
justification of any procurement under this subparagraph.
(iii) Subparagraph (ii) shall expire two years after
the effective date of this subparagraph.
(3) Upon selecting a private third-party administrator
to administer the program, the department and the private
third-party administrator shall enter into a contract that
specifies service level agreements for timeliness of:
(i) The review of and determinations regarding
applications under section 2004-N.
(ii) The approval of a participating entity or
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personalized education program in accordance with this
act for the eligible student.
(iii) The flow of money into and from each student
freedom account.
(iv) The flow of money to a participating entity or
for a personalized education program in accordance with
this act.
(4) A contract between the department and a third-party
administrator shall include quarterly reporting requirements
of all forms of revenue earned by the third-party
administrator in the process of administering the program,
including operational fees charged, flat fees charged,
transaction fees charged and revenue generated by a
marketplace system.
(c) Expenses.--The department may annually withhold up to 5%
of money allocated for each student freedom account for the
administration of the program.
Section 2004-N. Application.
(a) Development of form.-- The department or a third-party
administrator shall design a concise, simple and easily
understood application form available for an applicant to
complete for the purpose of establishing a student freedom
account for a school-age child.
(b) Languages of form.--An application form under this
section shall be available in the preferred language of the
applicant, unless the department determines that doing so would
be unreasonable or excessively costly for the department to
bear.
(c) Submittal of form.--An applicant seeking to establish a
student freedom account shall first submit a completed
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application form under this section either electronically
through the publicly accessible Internet website of the
department or as otherwise prescribed by the department.
(d) Individuals who may apply.--Only a parent of a school-
age child may apply for a student freedom account for the
school-age child.
(e) Acceptance.--The department or third-party administrator
shall accept applications year round on a rolling basis.
(f) Review and approval.--
(1) The department or a third-party administrator shall
review each submitted application under this section to
determine if the requirements under this section are met. If
the requirements are met, the department shall approve the
application and enter into an agreement with the applicant in
accordance with section 2005-N.
(2) The department shall notify the applicant and
affected school district of the approved application within
30 calendar days of the receipt of the application.
Section 2005-N. Agreement.
(a) Conditions for establishing student freedom account.--
After approval of an application under section 2004-N and no
longer than 30 days after the entry of an agreement under this
section, a student freedom account shall be established.
(b) Execution and contents.--An agreement to establish a
student freedom account must be executed by the applicant who
submitted the application under section 2004-N and the
department and shall contain the following statements:
(1) The school-age child of the applicant shall withdraw
from public school , including a public charter school or
public cyber charter school, and receive instruction in this
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Commonwealth from a participating entity or enroll in a
personalized education program in accordance with this act in
the school year for which the agreement applies.
(2) Money in the form of a grant shall be deposited into
the student freedom account in accordance with section 2006-
N.
(3) Money in the student freedom account may only be
used on behalf of the eligible student for qualified
education expenses.
(4) If the student freedom account is used for
qualifying education expenses not associated with full-time
enrollment in a participating entity or through a
personalized education program in accordance with this act,
education for the eligible student shall be provided, at a
minimum, as follows:
(i) At the elementary school level in the subjects
of:
(A) English, to include spelling, reading and
writing.
(B) Arithmetic.
(C) Science.
(D) Geography.
(E) History of the United States and
Pennsylvania.
(F) Civics.
(G) Safety education, including regular and
continuous instruction in the dangers and prevention
of fires.
(H) Health and physiology.
(I) Physical education.
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(J) Music.
(K) Art.
(ii) At the secondary school level in the subjects
of:
(A) English, to include language, literature,
speech and composition.
(B) Mathematics, to include general mathematics,
algebra and geometry.
(C) Science.
(D) Geography.
(E) Social studies, to include civics, world
history, history of the United States and history of
Pennsylvania.
(F) Safety education, including regular and
continuous instruction in the dangers and prevention
of fires.
(G) Health.
(H) Physical education.
(I) Music.
(J) Art.
(c) Subsequent agreements not precluded.--Failure of an
applicant to enter into an agreement under this section for a
school year shall not preclude the applicant from entering into
an agreement for a subsequent school year if the requirements of
this article are met.
(d) Term of agreement.--Except as otherwise provided under
this article, an agreement under this section shall be valid for
one school year.
(e) Renewal.--If all of the requirements of this article
continue to be met, an agreement under this section shall be
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automatically renewed each school year.
(f) Number.--
(1) An applicant may enter into separate agreements
under this section for each school-age child of the
applicant.
(2) Only one student freedom account may be established
for each school-age child.
(g) Termination.--
(1) Subject to paragraph (2), an agreement for a student
freedom account may be terminated early by the applicant who
entered the agreement or the department, in which case the
student freedom account shall be closed and any remaining and
available money in the student freedom account shall revert
to the General Fund and shall be disbursed to the resident
school district of the former eligible student.
(2) Notwithstanding paragraph (1), an agreement for a
student freedom account shall terminate automatically if the
eligible student no longer resides in this Commonwealth or
returns to full-time attendance at a public school, including
a public charter school or public cyber charter school. The
following apply:
(i) Within 15 days of the change in residence or
school attendance, the applicant who entered the
agreement shall notify the department in a manner
prescribed by the department.
(ii) After the applicant has notified the department
under this paragraph, the student freedom account shall
be closed and any remaining and available money in the
student freedom account shall revert to the General Fund.
If the former eligible student returns to full-time
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attendance at a public school, including a public charter
school or public cyber charter school, in this
Commonwealth, the money in the closed student freedom
account shall be disbursed to the resident school
district of the former eligible student.
(h) Explanation.--Upon entering into or renewing an
agreement under this section, the department shall provide the
applicant with a written explanation of the authorized uses of
the money in the student freedom account and the
responsibilities of the applicant and the department under the
agreement and this article. The written explanation shall
include a dedicated telephone number that permits an applicant
placing a call to speak with an employee of the department who
is able to answer questions about, provide information on and
provide assistance with the program. The department may not use
a computer system or other automated answering system that
impedes an applicant placing a call from directly speaking with
an employee of the department.
Section 2006-N. Grant.
(a) Deposit.--If an applicant enters into or renews an
agreement under section 2005-N with the department for a school
year, the department shall deposit a grant for that school year
in the student freedom account of the eligible student within 30
calendar days of an agreement being entered into by the
applicant and the department.
(b) Amount.--The amount of the grant under subsection (a)
shall be as follows:
(1) For an eligible student who is not a student with
special needs, the grant amount shall be equal to the State
revenue received by school districts divided by the State
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total average daily membership.
(2) For an eligible student who is a student with
special needs, the grant amount shall be based on the
category of disability by which the resident school district
is required to categorize the eligible student for the
purpose of the report required under section 1372(8) as
follows:
(i) For an eligible student in Category 1, multiply
the grant amount in paragraph (1) by 1.51.
(ii) For an eligible student in Category 2, multiply
the grant amount in paragraph (1) by 3.77.
(iii) For an eligible student in Category 3A or 3B,
multiply the grant amount in paragraph (1) by 7.46.
(3) For an eligible student receiving a grant, the
amount of basic education funding and other subsidies paid by
the department to the resident school district shall be
reduced by the grant amount calculated for the student.
( 4) If a school district's basic education funding and
other subsidies are reduced under this section, the resident
school district shall include the grant recipient in the
resident school district's average daily membership for the
purpose of calculating school subsidies.
(c) Disposition.--The following shall apply to money
remaining in a student freedom account:
(1) For money remaining in a student freedom account at
the end of a school year, the money may be carried forward to
any other school year of the eligible student if the
agreement entered into under section 2005-N is renewed for
the other school year.
(2) Subject to paragraph (3), money remaining in a
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student freedom account when an agreement entered into under
section 2005-N is not renewed or is terminated shall revert
to the General Fund and be used in the resident school
district of the former eligible student.
(3) Money remaining in a student freedom account after
the eligible student graduates from high school may be used
for qualified education expenses for up to two years after
the date of high school graduation. After the two-year time
period under this paragraph has expired, money remaining in
the student freedom account shall revert to the General Fund.
Section 2007-N. Payments.
(a) Prohibitions.--A participating entity that receives a
payment for qualified education expenses may not:
(1) Refund a portion of the payment directly to the
applicant who made the payment.
(2) Rebate or otherwise directly share a portion of the
payment with the applicant who made the payment.
(b) Refund.--A participating entity shall deposit a refund
for an item that is being returned or an item or service that
has not been provided directly to the student freedom account of
the eligible student from which payment for the item or service
was made.
(c) Payment system.--
(1) The department or third-party administrator shall
develop a system that enables an applicant to pay for
services provided by a participating entity under the program
by:
(i) electronic money transfer, including an
electronic payment system and debit card system; or
(ii) another method approved by the department.
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(2) The department may not adopt a system that
exclusively requires an applicant to be reimbursed for out-
of-pocket expenses.
(d) Source of payment.--
(1) An individual may not deposit personal money into or
otherwise make gifts or contributions of private money to a
student freedom account.
(2) Nothing in this section shall be construed to
prohibit an applicant or eligible student from paying for
qualified education expenses from a source other than a
student freedom account.
Section 2008-N. Taxability.
Money received under this article shall not constitute
taxable income to the applicant.
Section 2009-N. Audits.
The Department of the Auditor General may:
(1) Conduct periodic audits, including risk-based
audits, as deemed necessary by the Auditor General to ensure
accuracy and compliance with the provisions of this article.
(2) Refer cases of suspected fraudulent misuse of
student freedom accounts to the Office of State Inspector
General for investigation. If the investigation results in a
finding that rises to the level of criminal activity, the
State Inspector General shall refer the matter to the
appropriate law enforcement agency for prosecution.
(3) Notify the department of cases of suspected
fraudulent misuse that are referred to the Inspector General.
Section 2010-N. Penalties.
If the department determines that money in a student freedom
account has been fraudulently expended for an expense other than
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a qualified education expense, the department may do any of the
following:
(1) Freeze or dissolve the student freedom account,
subject to regulations adopted by the department providing
for notice of the action and opportunity to respond to the
notice.
(2) Disqualify the applicant from future participation
in the program.
Section 2011-N. Accountability standards for a participating
entity.
(a) Compliance.--A participating entity shall:
(1) Comply with all health and safety laws or codes that
apply to the participating entity.
(2) Comply with the nondiscrimination policies under
section 1521 and 42 U.S.C. § 1981 (relating to equal rights
under the law).
(3) Comply with the provisions of sections 111 and
111.1.
(b) Financial accountability standards.--
(1) A participating entity shall provide applicants with
a receipt for all qualified education expenses incurred by
the participating entity.
(2) The department may require a participating entity
that expects to receive at least $10,000 in payments from
student freedom accounts during the school year to file
financial viability documentation, in the form and manner as
determined by the department, which may include:
(i) a surety bond payable to the Commonwealth in an
amount equal to the aggregate amount of money from the
student freedom accounts expected to be paid during the
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school year on behalf of eligible students admitted at
the participating entity; or
(ii) financial information that demonstrates that
the participating entity has the ability to pay an
aggregate amount equal to the amount of money from the
student freedom accounts expected to be paid during the
school year on behalf of eligible students admitted at
the participating entity.
(c) Academic accountability standards.--
(1) An applicant shall ensure that the department is
informed of the eligible student's graduation from high
school.
(2) The department shall:
(i) Ensure compliance with all student privacy laws,
including 20 U.S.C. § 1232g (relating to family
educational and privacy rights).
(ii) Administer a quarterly parental satisfaction
survey that shall ask parents of eligible students
participating in the program to express:
(A) Parents' satisfaction with the program.
(B) The number of years that the eligible
student has participated in the program.
(C) Parents' opinions on other topics, items or
issues that the department determines would elicit
information about the effectiveness of the program.
(iii) Make reasonable efforts to incorporate survey
results into future program improvements.
(d) Participating entity autonomy.--
(1) A participating entity shall be autonomous and may
not be an agent of the department or the Commonwealth.
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(2 ) The department or another State agency may not
regulate the educational program of a participating entity
that accepts money from a student freedom account.
(3) The establishment of the program may not be
construed to expand the regulatory authority of the
Commonwealth, the officers of the Commonwealth or a school
district to impose additional regulation of a participating
entity beyond those necessary to enforce the requirements of
the program.
Section 2012-N. Bar of certain participating entities.
(a) Reasons.--The department may bar a participating entity
from participation in the program if the department establishes
that the participating entity has:
(1) routinely failed to comply with the accountability
standards established under section 2011-N; or
(2) failed to provide an eligible student with the
educational services funded by the eligible student's student
freedom account.
(b) Notice.--If the department bars a participating entity
from participation in the program, the department shall post the
decision on the publicly accessible Internet website of the
department.
(c) Appeal.--A participating entity may appeal the
department's decision under this section.
Section 2013-N. School records.
The resident school district of a school-age child shall
provide the participating entity that has admitted the school-
age child as an eligible student with a complete copy of the
school-age child's school records immediately upon enrollment or
when services in the participating entity begin, subject to 20
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U.S.C. § 1232g (relating to family educational and privacy
rights).
Section 2014-N. Legal proceedings.
(a) Liability.--Liability shall not arise on the part of the
Commonwealth, the department, a third-party administrator, a
participating entity or a public school based on the award or
use of a student freedom account in accordance with this
article.
(b) Challenges.--
(1) If any part of this article is challenged in a State
court as violating either the Constitution of the United
States or the Constitution of Pennsylvania, applicants of
eligible students and students who previously had a student
freedom account shall be permitted to intervene as of right
in the lawsuit for the purposes of defending the
constitutionality of the program.
(2) For the purposes of judicial administration under
this subsection, a court:
(i) May require that all of the participating
applicants file a joint brief.
(ii) May not require all of the participating
applicants to join a brief filed on behalf of a named
State defendant.
(c) Severability.--If any provision of this article or the
application thereof to any person or circumstance is held
invalid, the invalidity shall not affect other provisions or
applications of this article that can be given effect without
the invalid provision or application, and to this end the
provisions of this article are declared to be severable.
Section 2015-N. Other information to be posted.
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The department shall annually post on its publicly accessible
Internet website:
(1) A list of all participating entities.
(2) A list of all qualified education expenses. The
following apply:
(i) The list is not intended to be exhaustive.
(ii) The list shall be accompanied by a statement
that the intent of the program is to foster parental
freedom and flexibility in designing an eligible
student's education.
Section 2016-N. Guidelines.
Within 60 days of the effective date of this section, the
department shall develop guidelines as necessary for the
administration of this article.
Section 2017-N. Implementation.
(a) Data.--The department shall, at a time and in a manner
as may be directed by the department, request and receive
information and data from a resident school district,
participating entity or applicant determined to be necessary by
the department to administer this article.
(b) Contracting.--
(1) Notwithstanding any provision of 62 Pa.C.S. Pt. I
(relating to Commonwealth Procurement Code) and to facilitate
the prompt implementation of this article, a contract may be
awarded for a supply or service without competition if the
department 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. T he
department shall provide and make publicly available a
written justification of any procurement under this
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subsection.
(2) Paragraph (1) shall not apply after two years
following the issuance of the procurement under paragraph
(1). Procurements issued after this period shall be issued as
provided by law.
(c) Regulations.--
(1) To facilitate the prompt implementation of this
article, regulations determined to be necessary and
promulgated by the department shall be deemed temporary
regulations and shall expire no later than two years
following the publication of temporary regulations. The
department 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
(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 department 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.
(d) Departmental coordination.--
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(1) The Department of Education, to every extent
possible, shall provide assistance as needed and requested by
the department to carry out this article.
(2) Nothing in this article shall be construed to expand
the authority of the Department of Education.
Section 3. This act shall apply to the school year that
begins at least one year after the effective date of this
section and to each school year thereafter, with applications
accepted under this act not earlier than the March 1 that occurs
immediately prior to the first school year.
Section 4. This act shall take effect immediately.
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