HB 1258 — 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
 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," in pupils and attendance, providing
 6      for personalized education program; providing for student
 7      freedom accounts; and establishing the Student Freedom
 8      Account Program.
 9      This act shall be known and may be cited as the Student
10   Freedom Account Act.
11      The General Assembly of the Commonwealth of Pennsylvania
12   hereby enacts as follows:
13      Section 1.    The act of March 10, 1949 (P.L.30, No.14), known
14   as the Public School Code of 1949, is amended by adding a
15   section to read:
16      Section 1327.4.     Personalized Education Program.--(a)   The
17   requirements contained in sections 1511 and 1511.1, except as
18   provided for in this section, and section 1605 shall not apply
19   to personalized education programs.
20      (b)   A personalized education program shall not be considered
21   a nonpublic school under the provisions of this act.
 1      (c)    The following apply to an affidavit of the parent or
 2   guardian or other person having legal custody of a child who
 3   will participate in a personalized education program:
 4      (1)    The affidavit shall be filed with the superintendent of
 5   the school district of residence of the child prior to the
 6   commencement of the personalized education program and annually
 7   thereafter no later than August 1.
 8      (2)    The affidavit shall include:
 9      (i)    The name of the supervisor of the personalized education
10   program who shall be responsible for ensuring the provision of
11   instruction.
12      (ii)    The name and age of the child.
13      (iii)    The address and telephone number of the personalized
14   education program site.
15      (iv)    A statement that the subjects as required by law will
16   be offered in the English language, including an outline of
17   proposed education objectives by subject area. The
18   superintendent may not use the required outline of proposed
19   education objectives in determining whether the personalized
20   education program is out of compliance with this section and
21   section 1327.
22      (v)    Evidence that the child has been immunized in accordance
23   with the provisions of section 1303(a) and has received the
24   health and medical services required for students of the child's
25   age or grade level under Article XIV.
26      (vi)    A statement that the personalized education program
27   shall comply with the provisions of this section and that the
28   affidavit shall be satisfactory evidence thereof.
29      (vii)    A certification to be signed by the supervisor that
30   the supervisor, all adults living in the home and persons having

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 1   legal custody of the child have not been convicted of the
 2   criminal offenses enumerated in section 111(e) within five years
 3   immediately preceding the date of the affidavit.
 4      (3)   The affidavit may contain information for more than one
 5   child.
 6      (d)   If a personalized education program site is relocating
 7   to another school district within this Commonwealth during the
 8   course of the public school term or prior to the opening of the
 9   public school term in the fall, the supervisor of the
10   personalized education program shall apply, by certified mail,
11   within thirty (30) days prior to the relocation, to the
12   superintendent of the district in which the supervisor currently
13   resides, requesting a letter of transfer for the personalized
14   education program to the district to which the personalized
15   education program is relocating. The following apply:
16      (1)   The current superintendent of residence shall issue the
17   letter of transfer within thirty (30) days after receipt of the
18   certified mail request of the supervisor of the personalized
19   education program.
20      (2)   If the personalized education program is not in
21   compliance with the provisions of this section, the
22   superintendent of the current district of residence shall inform
23   the supervisor of the personalized education program and the
24   superintendent of the district to which the personalized
25   education program is relocating the status of the personalized
26   education program and the reason for the denial of the letter of
27   transfer.
28      (3)   If the personalized education program is in hearing
29   procedures, as contained in this section, the superintendent of
30   the current district of residence shall inform the supervisor of

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 1   the personalized education program, the assigned hearing
 2   examiner and the superintendent of the district to which the
 3   personalized education program is relocating the status of the
 4   personalized education program and the reason for the denial of
 5   the letter of transfer.
 6      (4)     The letter of transfer must be filed by the supervisor
 7   of the personalized education program with the superintendent of
 8   the new district of residence. In the case of pending
 9   proceedings, the superintendent of the new district of residence
10   shall continue the personalized education program until the
11   appeal process is finalized.
12      (e)     A child who is enrolled in a personalized education
13   program and whose education is therefore under the direct
14   supervision of the parent or guardian or other person having
15   legal custody of the child shall be deemed to have met the
16   requirements of section 1327 if the personalized education
17   program provides a minimum of one hundred eighty (180) days of
18   instruction or nine hundred (900) hours of instruction per year
19   at the elementary level or nine hundred ninety (990) hours per
20   year at the secondary level. The following apply regarding
21   courses:
22      (1)     At the elementary school level, the following courses
23   shall be taught:
24      (i)     English, to include spelling, reading and writing.
25      (ii)     Arithmetic.
26      (iii)     Science.
27      (iv)     Geography.
28      (v)     History of the United States and Pennsylvania.
29      (vi)     Civics.
30      (vii)     Safety education, including regular and continuous

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 1   instruction in the dangers and prevention of fires.
 2      (viii)     Health and physiology.
 3      (ix)     Physical education.
 4      (x)     Music.
 5      (xi)     Art.
 6      (2)     At the secondary school level, the following courses
 7   shall be taught:
 8      (i)     English, to include language, literature, speech and
 9   composition.
10      (ii)     Mathematics, to include general mathematics, algebra
11   and geometry.
12      (iii)     Science
13      (iv)     Geography.
14      (v)     Social studies, to include civics, world history,
15   history of the United States and history of Pennsylvania.
16      (vi)     Safety education, including regular and continuous
17   instruction in the dangers and prevention of fires.
18      (vii)     Health.
19      (viii)     Physical education.
20      (ix)     Music.
21      (x)     Art.
22      (3)     The courses under paragraph (2) may include, at the
23   discretion of the supervisor of the personalized education
24   program:
25      (i)     Economics.
26      (ii)     Biology.
27      (iii)     Chemistry.
28      (iv)     Foreign languages.
29      (v)     Trigonometry.
30      (vi)     Other age-appropriate courses as contained in 22 Pa.

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 1   Code Ch. 4 (relating to academic standards and assessment).
 2      (f)     The following minimum courses in grades nine through
 3   twelve are established as a requirement for graduation in a
 4   personalized education program:
 5      (1)     Four years of English.
 6      (2)     Three years of mathematics.
 7      (3)     Three years of science.
 8      (4)     Three years of social studies.
 9      (5)     Two years of arts and humanities.
10      (g)     The following apply to diplomas:
11      (1)     A high school diploma awarded by a supervisor or an
12   approved diploma-granting organization shall be considered as
13   having all the rights and privileges afforded by the
14   Commonwealth, a Commonwealth agency, including the Pennsylvania
15   Higher Education Assistance Agency, a political subdivision, a
16   local agency and an authority or instrumentality of the
17   Commonwealth or a political subdivision to a high school diploma
18   awarded under this act, subject to subparagraphs (i) and (ii).
19   The following apply regarding diplomas:
20      (i)     In the case of a diploma awarded by a supervisor:
21      (A)     The student receiving the diploma shall have completed
22   all the requirements in subsection (f) while enrolled in a
23   personalized education program that is in compliance with this
24   section.
25      (B)     The diploma shall be awarded to the student on a
26   standardized form to be developed by the department and which
27   shall be made available on the publicly accessible Internet
28   website of the department.
29      (C)     The diploma shall be signed by the student's twelfth
30   grade evaluator in confirmation of the student's suitability for

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 1   graduation.
 2      (ii)     In the case of a diploma awarded by an approved
 3   diploma-granting organization:
 4      (A)     The student receiving the diploma shall have completed
 5   all the requirements in subsection (f) while enrolled in a
 6   personalized education program that is in compliance with this
 7   section.
 8      (B)     The diploma shall be awarded to the student on a
 9   standardized form to be developed by the organization.
10      (2)     The department shall establish eligibility criteria and
11   an application process for approving diploma-granting
12   organizations to award high school diplomas to students enrolled
13   in personalized education programs. The department shall
14   maintain a list of approved diploma-granting organizations and
15   post the list on the publicly accessible Internet website of the
16   department.
17      (h)     To demonstrate that appropriate education is occurring,
18   the supervisor of the personalized education program shall
19   provide and maintain on file the following documentation for
20   each student enrolled in the personalized education program:
21      (1)     A portfolio of records and materials. The following
22   apply:
23      (i)     The portfolio shall consist of a log, made
24   contemporaneously with the instruction, which designates by
25   title the reading materials used, samples of any writings,
26   worksheets, workbooks or creative materials used or developed by
27   the student and, in grades three, five and eight, results of
28   nationally normed standardized achievement tests in reading and
29   language arts and mathematics or the results of Statewide tests
30   administered in these grade levels.

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 1      (ii)     The department shall establish a list, with at least
 2   five nationally normed standardized achievement tests from which
 3   the supervisor of the personalized education program shall
 4   select a test to be administered if the supervisor does not
 5   choose the Statewide tests.
 6      (iii)    At the discretion of the supervisor, the portfolio may
 7   include the results of nationally normed standardized
 8   achievement tests for other subject areas or grade levels.
 9      (iv)     The supervisor shall ensure that the nationally normed
10   standardized achievement tests or the Statewide tests shall not
11   be administered by the parent or guardian or other person having
12   legal custody of the child.
13      (v)    A teacher or administrator who evaluates a portfolio at
14   the elementary level, for grades kindergarten through six, shall
15   have at least two years of experience in grading any of the
16   following subjects:
17      (A)    English, to include spelling, reading and writing.
18      (B)    Arithmetic.
19      (C)    Science.
20      (D)    Geography.
21      (E)    History of the United States and Pennsylvania.
22      (F)    Civics.
23      (vi)     A teacher or administrator who evaluates a portfolio at
24   the secondary level, for grades seven through twelve, shall have
25   at least two years of experience in grading any of the following
26   subjects:
27      (A)    English, to include language, literature, speech,
28   reading and composition.
29      (B)    Mathematics, to include general mathematics, algebra,
30   trigonometry, calculus and geometry.

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 1      (C)    Science, to include biology, chemistry and physics.
 2      (D)    Geography.
 3      (E)    Social studies, to include economics, civics, world
 4   history, history of the United States and history of
 5   Pennsylvania.
 6      (F)    Foreign language.
 7      (vii)     As used in subparagraphs (v) and (vi), the term
 8   "grading" shall mean evaluation of classwork, homework, quizzes,
 9   classwork-based tests and prepared tests related to classwork
10   subject matter.
11      (2)    An annual written evaluation of the student's
12   educational progress as determined by a licensed clinical or
13   school psychologist or a teacher certified by the Commonwealth
14   or by a nonpublic school teacher or administrator. The following
15   apply:
16      (i)    The nonpublic teacher or administrator shall have:
17      (A)    At least two years of teaching experience in a
18   Pennsylvania public or nonpublic school within the last ten
19   years.
20      (B)    The required experience at the elementary level to
21   evaluate elementary students or at the secondary level to
22   evaluate secondary students.
23      (ii)    The certified teacher shall have experience at the
24   elementary level to evaluate elementary students or at the
25   secondary level to evaluate secondary students.
26      (iii)     The evaluation shall also be based on an interview of
27   the child and a review of the portfolio required in paragraph
28   (1) and shall certify whether or not an appropriate education is
29   occurring.
30      (iv)    At the request of the supervisor, persons with other

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 1   qualifications may conduct the evaluation with the prior consent
 2   of the superintendent of the district of residence.
 3      (v)    An evaluator may not be the supervisor or the spouse of
 4   the supervisor.
 5      (i)    The school district of residence shall, at the request
 6   of the supervisor, lend to the personalized education program
 7   copies of the school district's planned courses, textbooks and
 8   other curriculum materials appropriate to the student's age and
 9   grade level.
10      (j)    The following apply to activities:
11      (1)    The school district of residence shall permit a child
12   who is enrolled in a personalized education program to
13   participate in any activity that is subject to the provisions of
14   section 511, including clubs, musical ensembles, athletics and
15   theatrical productions, if the child:
16      (i)    Meets the eligibility criteria or their equivalent for
17   participation in the activity that applies to students enrolled
18   in the school district.
19      (ii)    Meets the tryout criteria or their equivalent for
20   participation in the activity that applies to students enrolled
21   in the school district.
22      (iii)   Complies with all policies, rules and regulations or
23   their equivalent of the governing organization of the activity.
24      (2)    For the purposes of this subsection, the school district
25   of residence's program of interscholastic athletics, including
26   varsity sports, shall be considered an activity and shall
27   include all activities related to competitive sports contests,
28   games, events or exhibitions involving individual students or
29   teams of students whenever the activities occur between schools
30   within the school district or between schools outside of the

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 1   school district.
 2      (3)    If an activity requires completion of a physical
 3   examination or medical test as a condition of participation and
 4   the school district of residence offers the physical examination
 5   or medical test to students enrolled in the school district, the
 6   school district shall permit a child who is enrolled in a
 7   personalized education program to access the physical
 8   examination or medical test. The school district shall publish
 9   the dates and times of the physical examination or medical test
10   in a publication of general circulation in the school district
11   and on the publicly accessible Internet website of the school
12   district.
13      (4)    A board of school directors may adopt a policy to
14   implement the requirements of this subsection. The policy shall
15   only apply to participation in activities and shall not conflict
16   with any other provision of this section.
17      (k)    The following apply:
18      (1)    Beginning with the 2025-2026 school year and each school
19   year thereafter, the school district of residence:
20      (i)    Shall develop policies and procedures to permit a child
21   who is enrolled in a personalized education program to
22   participate, on the same basis as other students enrolled in the
23   school district, in a cocurricular activity that merges
24   extracurricular activities with a required academic course,
25   including band or orchestra.
26      (ii)     Must permit a child who is enrolled in a personalized
27   education program to participate in academic courses equaling up
28   to at least one quarter of the school day for full-time
29   students, pursuant to the policies and procedures of the school
30   district of residence, on the same basis as other students

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 1   enrolled in the school district, if the child:
 2      (A)     Meets the eligibility criteria or their equivalent for
 3   participation in the cocurricular or academic course that
 4   applies to students enrolled full time in the school district.
 5      (B)     Meets the prerequisite criteria or their equivalent for
 6   participation in the cocurricular or academic course that
 7   applies to students enrolled full time in the school district.
 8      (C)     Complies with all policies, rules and regulations or
 9   their equivalent of the school district of residence.
10      (2)     For the purposes of this subsection, the school district
11   of residence shall provide the grade for each cocurricular or
12   academic course to the supervisor of the personalized education
13   program, who shall be responsible for maintaining the material
14   in the portfolio of records.
15      (3)     The parent or legal guardian of the child shall be
16   responsible for transportation of the child to and from school
17   for the selected courses, except that a personalized education
18   program student may utilize district transportation to or from
19   school during the times a bus is otherwise already operating and
20   space is available.
21      (4)     A board of school directors may adopt a policy to
22   implement the requirements of this subsection. A policy under
23   this paragraph may require that the cocurricular or academic
24   courses taken under paragraph (1) be taken consecutively during
25   the school day if the school or a child's parent or legal
26   guardian is not able to provide adequate supervision for the
27   child between cocurricular and academic courses. The policy
28   shall only apply to participation in cocurricular or academic
29   courses and shall not conflict with any provisions of this
30   section.

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 1      (5)    A personalized education program student enrolled in a
 2   cocurricular or academic course in the student's school district
 3   of residence shall be included in the average daily membership
 4   of the school district of residence and shall pay the tuition
 5   calculated by counting the time the personalized education
 6   program student spends in the public school.
 7      (l)    The following apply:
 8      (1)    Beginning with the 2025-2026 school year and each school
 9   year thereafter, the school district of residence shall develop
10   policies and procedures consistent with the enrollment or seat
11   allocation provisions of the written agreement among the
12   participating school districts that established the career and
13   technical education center, or in the case of a school-district-
14   operated career and technical education program, the school
15   district of residence shall develop policies and procedures
16   consistent with subsection (k), to permit a personalized
17   education program student to participate in a career and
18   technical education program on the same basis as other students
19   enrolled in the school district, if the child:
20      (i)    Meets the eligibility criteria or their equivalent for
21   participation in the career and technical education program that
22   applies to students enrolled full time in the school district.
23      (ii)    Meets the prerequisite criteria or their equivalent for
24   participation in the career and technical education program that
25   applies to students enrolled full time in the school district.
26      (iii)    Complies with all policies, rules and regulations or
27   their equivalent of the school district of residence and the
28   career and technical education center.
29      (2)    For the purposes of this subsection, the school-
30   district-operated career and technical education program or the

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 1   career and technical education center shall provide the grades
 2   to the personalized education program supervisor, who shall be
 3   responsible for maintaining the material in the portfolio of
 4   records.
 5      (3)     The personalized education program students may utilize
 6   district transportation to or from the career and technical
 7   education program during the times buses are otherwise already
 8   operating and space is available.
 9      (4)     A board of school directors may adopt a policy to
10   implement the requirements of this subsection. The policy shall
11   only apply to participation in career and technical education
12   programs and shall not conflict with any provisions of this
13   section.
14      (5)     A personalized education program student enrolled in the
15   career and technical education program shall be included in the
16   average daily membership of the school district of residence and
17   career and technical education center, if applicable, and shall
18   pay the tuition calculated by counting the time the personalized
19   education program student spends in the career and technical
20   education program.
21      (m)     Nothing in subsections (k) and (l) shall prohibit a
22   school district or a career and technical education center from
23   establishing policies that prioritize participation in courses
24   or programs with limited seating or enrollment.
25      (n)     When documentation is required by this section to be
26   submitted to a hearing examiner, the hearing examiner shall
27   return, upon completion of the review by the hearing officer,
28   all of the documentation to the supervisor of the personalized
29   education program. The hearing examiner may photocopy all or
30   portions of the documentation for the files of the hearing

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 1   officer.
 2      (o)     An evaluator's certification stating that an appropriate
 3   education is occurring for the school year under review shall be
 4   provided by the supervisor to the superintendent of the school
 5   district of residence by June 30 of each year. If the supervisor
 6   fails to submit the certification due on June 30 to the
 7   superintendent, the superintendent shall send a letter by
 8   certified mail, return receipt requested, to the supervisor of
 9   the personalized education program, stating that the
10   certification is past due and notifying the supervisor to submit
11   the certification within ten (10) days of receipt of the
12   certified letter. If the certification is not submitted within
13   that time, the board of school directors shall provide for a
14   proper hearing in accordance with subsection (r).
15      (p)     If the superintendent has a reasonable belief, at any
16   time during the school year, that appropriate education may not
17   be occurring in the personalized education program, the
18   superintendent may submit a letter to the supervisor, by
19   certified mail, return receipt requested, requiring that an
20   evaluation be conducted in accordance with subsection (h)(2) and
21   that an evaluator's certification stating that an appropriate
22   education is occurring for the school year under review, be
23   submitted to the district by the supervisor within thirty (30)
24   days of the receipt of the certified letter. The following
25   apply:
26      (1)     The certified letter shall include the basis for the
27   superintendent's reasonable belief.
28      (2)     If the tests, as required in subsection (h)(1), have not
29   been administered at the time of the receipt of the certified
30   letter by the supervisor, the supervisor shall submit the other

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 1   required documentation to the evaluator and shall submit the
 2   test results to the evaluator with the completed documentation
 3   at the conclusion of the school year.
 4      (3)   If the certification is not submitted to the
 5   superintendent within thirty (30) days of receipt of the
 6   certified letter, the board of school directors shall provide
 7   for a proper hearing in accordance with subsection (r).
 8      (q)   If the superintendent has a reasonable belief that the
 9   personalized education program is out of compliance with any
10   other provisions of this section, the superintendent shall
11   submit a letter to the supervisor by certified mail, return
12   receipt requested, requiring a certification to be submitted
13   within thirty (30) days indicating that the program is in
14   compliance. The following apply:
15      (1)   The certified letter shall include the basis for the
16   superintendent's reasonable belief.
17      (2)   If the certification is not submitted within thirty (30)
18   days of receipt of the certified letter, the board of school
19   directors shall provide for a proper hearing in accordance with
20   subsection (r).
21      (r)   If a hearing is required by the provisions of subsection
22   (o), (p) or (q), the board of school directors shall provide for
23   a proper hearing by a duly qualified and impartial hearing
24   examiner within thirty (30) days. The following apply:
25      (1)   The examiner shall render a decision within fifteen (15)
26   days of the hearing except that the examiner may require the
27   establishment of a remedial education plan mutually agreed to by
28   the superintendent and supervisor of the personalized education
29   program who shall continue the personalized education program.
30      (2)   The decision of the examiner may be appealed by either

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 1   the supervisor of the personalized education program or the
 2   superintendent to the Secretary of Education, Commonwealth Court
 3   or court of common pleas.
 4      (s)   If the hearing examiner finds that the evidence does not
 5   indicate that appropriate education is taking place in the
 6   personalized education program, the personalized education
 7   program for the child shall be out of compliance with the
 8   requirements of this section and section 1327, and the student
 9   shall be promptly enrolled in the public school district of
10   residence, a nonpublic school or a licensed private academic
11   school. The personalized education program may continue during
12   the time of any appeal.
13      (t)   At the time that the child's personalized education
14   program has been determined to be out of compliance with the
15   provisions of this section and section 1327, the supervisor and
16   spouse of the supervisor of the personalized education program
17   shall not be eligible to supervise a personalized education
18   program for that child for a period of twelve (12) months from
19   the date of the determination.
20      (u)   Nothing in this section shall be construed to affect
21   Federal or State law relating to special education for students
22   with disabilities in personalized education programs.
23      (v)   As used in this section, the following words and phrases
24   shall have the meanings given to them in this subsection unless
25   the context clearly indicates otherwise:
26      "Appropriate education" shall mean a program consisting of
27   instruction in the required subjects for the time required in
28   this act and in which the student demonstrates sustained
29   progress in the overall program.
30      "Department" shall mean the Department of Education of the

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 1   Commonwealth.
 2      "Hearing examiner" shall mean an individual who is not an
 3   officer, employe or agent of the department or of the school
 4   district or intermediate unit of residence of the child in the
 5   personalized education program.
 6      "Personalized education program" shall mean a program
 7   conducted, in compliance with this section, by the parent or
 8   guardian or other person having legal custody of the child.
 9      "Supervisor" shall mean the parent or guardian or other
10   person having legal custody of the child who is responsible for
11   meeting the requirements of the student freedom account program
12   under Article XX-N and ensuring the provision of instruction,
13   provided that the person has a high school diploma or its
14   equivalent.
15      Section 2.     The act is amended by adding an article to read:
16                                ARTICLE XX-N
17                          STUDENT FREEDOM ACCOUNTS
18   Section 2001-N.    Scope of article.
19      This article relates to student freedom accounts.
20   Section 2002-N.    Definitions.
21      The following words and phrases when used in this article
22   shall have the meanings given to them in this section unless the
23   context clearly indicates otherwise:
24      "Applicant."    A parent who applies for a student freedom
25   account under section 2004-N.
26      "Average daily membership."       As defined in section 2501(3).
27      "Department."    The Treasury Department of the Commonwealth.
28      "Eligible student."    A school-age child whose parent has
29   entered into an agreement for a student freedom account under
30   section 2005-N.

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 1      "Institution of higher education."           As defined in section
 2   118(c).
 3      "Nonpublic school."          A school, other than a public school,
 4   located in this Commonwealth where a Commonwealth resident may
 5   legally fulfill the compulsory attendance requirements of this
 6   act, that complies with section 1521 and meets the applicable
 7   requirements of Title VI of the Civil Rights Act of 1964 (Public
 8   Law 88-352, 42 U.S.C. § 2000 et seq.).
 9      "Parent."      An individual who is a resident of the
10   Commonwealth and who, with respect to a school-age child:
11             (1)   is a biological parent, adoptive parent or legal
12      guardian of the school-age child;
13             (2)   has legal custody of the school-age child; or
14             (3)   resides with the school-age child in the
15      individual's home and supports the school-age child gratis as
16      if the school-age child were a lineal descendant of the
17      individual.
18      "Participating entity."          As follows:
19             (1)   Any of the following from which a school-age child
20      receives instruction or support under this article:
21                   (i)    A nonpublic school for grades kindergarten
22             through 12, or a combination of grades.
23                   (ii)    An institution of higher education.
24                   (iii)    A distance learning program.
25                   (iv)    A tutor who:
26                          (A)   is a teacher licensed in any state;
27                          (B)   has tutored or taught at an eligible
28                   postsecondary institution or an eligible nonpublic
29                   school;
30                          (C)   is a subject matter expert;

20250HB1258PN1403                           - 19 -
 1                       (D)   is approved by the department; or
 2                       (E)   is part of a tutoring agency that is
 3                approved by the department.
 4                (v)    A counselor who is licensed or accredited by the
 5          Commonwealth to work with school-age children.
 6                (vi)    A provider of personalized education services
 7          or curriculum.
 8          (2)   The term does not include a parent of a school-age
 9      child to the extent that the parent provides educational
10      services directly to the school-age child.
11      "Program."      The Student Freedom Account Program established
12   under section 2003-N(a).
13      "Public school."       A school district, charter school, cyber
14   charter school, regional charter school, intermediate unit or
15   area career and technical school.
16      "Qualified education expenses."         Costs, fees and other
17   expenses for or associated with any of the following for an
18   eligible student:
19          (1)   Tuition and school fees.
20          (2)   Required uniforms.
21          (3)   Textbooks.
22          (4)   Tutoring or other educational services provided by a
23      participating entity.
24          (5)   A virtual education program or course.
25          (6)   Services provided by a public school or public
26      charter school, including individual classes and
27      extracurricular programs.
28          (7)   Transportation services for education purposes.
29          (8)   Management of a student freedom account.
30          (9)   Summer school.

20250HB1258PN1403                      - 20 -
 1        (10)     Camps.
 2        (11)     After-school learning programs.
 3        (12)     Tuition, fees and textbooks at an eligible
 4    postsecondary institution.
 5        (13)     A nationally norm-referenced test, advanced
 6    placement or similar examination, standardized examination
 7    required for admission to an institution of higher education,
 8    area career and technical education examination or industry
 9    certification examination.
10        (14)     Curriculum, textbook or other instructional
11    materials.
12        (15)     Hardware, software and Internet connectivity
13    associated with instruction.
14        (16)     If the eligible student is a student with a
15    disability, special instruction or special services provided
16    to the eligible student, including occupational, physical,
17    speech or behavioral therapy.
18        (17)     Evaluation and identification of special needs or a
19    student with special needs.
20        (18)     Commonly used school supplies, including paper,
21    pens and pencils.
22        (19)     Other items or materials incurred in the education
23    of the eligible student.
24    "School-age child."    A child who:
25        (1)    is enrolled in kindergarten through grade 12; and
26        (2)    resides in this Commonwealth.
27    "Student freedom account."     A spending account that is:
28        (1)    Established and administered by the department in
29    accordance with this article.
30        (2)    Controlled by a parent of a school-age child with

20250HB1258PN1403                  - 21 -
 1      money that may be spent on qualified education expenses.
 2      "Student with special needs."        Any of the following:
 3            (1)   A child who:
 4                  (i)    is subject to an individualized education
 5            program under the Individuals with Disabilities Education
 6            Act (Public Law 91-230, 20 U.S.C. § 1400 et seq.) and 22
 7            Pa. Code Ch. 14 (relating to special education services
 8            and programs);
 9                  (ii)    is subject to a section 504 service agreement
10            under section 504 of the Rehabilitation Act of 1973
11            (Public Law 93-112, 29 U.S.C. § 701 et seq.) and 22 Pa.
12            Code Ch. 15 (relating to protected handicapped students);
13                  (iii)    is subject to a gifted individualized
14            education plan under 22 Pa. Code Ch. 16 (relating to
15            special education for gifted students);
16                  (iv)    is eligible for early intervention services
17            under 55 Pa. Code § 4226.22 (relating to eligibility for
18            early intervention services); or
19                  (v)    meets the definition of "child with a
20            disability" under the Individuals with Disabilities
21            Education Act or meets the definition of a "handicapped
22            person" under section 504 of the Rehabilitation Act of
23            1973 and its implementing regulations under 34 CFR
24            104.3(j) (relating to definitions).
25            (2)   The term includes a student for whom an evaluation
26      is pending under the Individuals with Disabilities Education
27      Act or the Rehabilitation Act of 1973.
28   Section 2003-N.        Establishment and administration of Student
29                  Freedom Account Program.
30      (a)   Establishment.--The Student Freedom Account Program is

20250HB1258PN1403                       - 22 -
 1   established within the department to administer student freedom
 2   accounts.
 3      (b)   Third-party administrators.--
 4            (1)   The department may contract with a private third-
 5      party administrator or multiple third-party administrators to
 6      administer the program.
 7            (2)   (i)     Except as provided in subparagraph (ii), if the
 8            department chooses to contract with a private third-party
 9            administrator to administer the program, the department
10            shall seek good faith bids from at least three
11            organizations.
12                  (ii)    Notwithstanding any provision of 62 Pa.C.S.
13            (relating to procurement), and in order to facilitate the
14            prompt implementation of this article, the department may
15            award a contract to a private third-party administrator
16            without competition if the department determines in
17            writing that the contract is necessary for the
18            implementation of any provision of this article and is in
19            the best interest of the Commonwealth. The department
20            shall provide and make publicly accessible a written
21            justification of any procurement under this subparagraph.
22                  (iii)    Subparagraph (ii) shall expire two years after
23            the effective date of this subparagraph.
24            (3)   Upon selecting a private third-party administrator
25      to administer the program, the department and the private
26      third-party administrator shall enter into a contract that
27      specifies service level agreements for timeliness of:
28                  (i)    The review of and determinations regarding
29            applications under section 2004-N.
30                  (ii)    The approval of a participating entity or

20250HB1258PN1403                       - 23 -
 1            personalized education program in accordance with this
 2            act for the eligible student.
 3                  (iii)    The flow of money into and from each student
 4            freedom account.
 5                  (iv)    The flow of money to a participating entity or
 6            for a personalized education program in accordance with
 7            this act.
 8            (4)   A contract between the department and a third-party
 9      administrator shall include quarterly reporting requirements
10      of all forms of revenue earned by the third-party
11      administrator in the process of administering the program,
12      including operational fees charged, flat fees charged,
13      transaction fees charged and revenue generated by a
14      marketplace system.
15      (c)   Expenses.--The department may annually withhold up to 5%
16   of money allocated for each student freedom account for the
17   administration of the program.
18   Section 2004-N.        Application.
19      (a)   Development of form.--The department or a third-party
20   administrator shall design a concise, simple and easily
21   understood application form available for an applicant to
22   complete for the purpose of establishing a student freedom
23   account for a school-age child.
24      (b)   Languages of form.--An application form under this
25   section shall be available in the preferred language of the
26   applicant, unless the department determines that doing so would
27   be unreasonable or excessively costly for the department to
28   bear.
29      (c)   Submittal of form.--An applicant seeking to establish a
30   student freedom account shall first submit a completed

20250HB1258PN1403                          - 24 -
 1   application form under this section either electronically
 2   through the publicly accessible Internet website of the
 3   department or as otherwise prescribed by the department.
 4      (d)   Individuals who may apply.--Only a parent of a school-
 5   age child may apply for a student freedom account for the
 6   school-age child.
 7      (e)   Acceptance.--The department or third-party administrator
 8   shall accept applications year round on a rolling basis.
 9      (f)   Review and approval.--
10            (1)   The department or a third-party administrator shall
11      review each submitted application under this section to
12      determine if the requirements under this section are met. If
13      the requirements are met, the department shall approve the
14      application and enter into an agreement with the applicant in
15      accordance with section 2005-N.
16            (2)   The department shall notify the applicant and
17      affected school district of the approved application within
18      30 calendar days of the receipt of the application.
19   Section 2005-N.    Agreement.
20      (a)   Conditions for establishing student freedom account.--
21   After approval of an application under section 2004-N and no
22   longer than 30 days after the entry of an agreement under this
23   section, a student freedom account shall be established.
24      (b)   Execution and contents.--An agreement to establish a
25   student freedom account must be executed by the applicant who
26   submitted the application under section 2004-N and the
27   department and shall contain the following statements:
28            (1)   The school-age child of the applicant shall withdraw
29      from public school, including a public charter school or
30      public cyber charter school, and receive instruction in this

20250HB1258PN1403                    - 25 -
 1    Commonwealth from a participating entity or enroll in a
 2    personalized education program in accordance with this act in
 3    the school year for which the agreement applies.
 4         (2)   Money in the form of a grant shall be deposited into
 5    the student freedom account in accordance with section 2006-
 6    N.
 7         (3)   Money in the student freedom account may only be
 8    used on behalf of the eligible student for qualified
 9    education expenses.
10         (4)   If the student freedom account is used for
11    qualifying education expenses not associated with full-time
12    enrollment in a participating entity or through a
13    personalized education program in accordance with this act,
14    education for the eligible student shall be provided, at a
15    minimum, as follows:
16               (i)   At the elementary school level in the subjects
17         of:
18                     (A)   English, to include spelling, reading and
19               writing.
20                     (B)   Arithmetic.
21                     (C)   Science.
22                     (D)   Geography.
23                     (E)   History of the United States and
24               Pennsylvania.
25                     (F)   Civics.
26                     (G)   Safety education, including regular and
27               continuous instruction in the dangers and prevention
28               of fires.
29                     (H)   Health and physiology.
30                     (I)   Physical education.

20250HB1258PN1403                       - 26 -
 1                         (J)   Music.
 2                         (K)   Art.
 3                  (ii)    At the secondary school level in the subjects
 4            of:
 5                         (A)   English, to include language, literature,
 6                  speech and composition.
 7                         (B)   Mathematics, to include general mathematics,
 8                  algebra and geometry.
 9                         (C)   Science.
10                         (D)   Geography.
11                         (E)   Social studies, to include civics, world
12                  history, history of the United States and history of
13                  Pennsylvania.
14                         (F)   Safety education, including regular and
15                  continuous instruction in the dangers and prevention
16                  of fires.
17                         (G)   Health.
18                         (H)   Physical education.
19                         (I)   Music.
20                         (J)   Art.
21      (c)   Subsequent agreements not precluded.--Failure of an
22   applicant to enter into an agreement under this section for a
23   school year shall not preclude the applicant from entering into
24   an agreement for a subsequent school year if the requirements of
25   this article are met.
26      (d)   Term of agreement.--Except as otherwise provided under
27   this article, an agreement under this section shall be valid for
28   one school year.
29      (e)   Renewal.--If all of the requirements of this article
30   continue to be met, an agreement under this section shall be

20250HB1258PN1403                           - 27 -
 1   automatically renewed each school year.
 2      (f)   Number.--
 3            (1)   An applicant may enter into separate agreements
 4      under this section for each school-age child of the
 5      applicant.
 6            (2)   Only one student freedom account may be established
 7      for each school-age child.
 8      (g)   Termination.--
 9            (1)   Subject to paragraph (2), an agreement for a student
10      freedom account may be terminated early by the applicant who
11      entered the agreement or the department, in which case the
12      student freedom account shall be closed and any remaining and
13      available money in the student freedom account shall revert
14      to the General Fund and shall be disbursed to the resident
15      school district of the former eligible student.
16            (2)   Notwithstanding paragraph (1), an agreement for a
17      student freedom account shall terminate automatically if the
18      eligible student no longer resides in this Commonwealth or
19      returns to full-time attendance at a public school, including
20      a public charter school or public cyber charter school. The
21      following apply:
22                  (i)    Within 15 days of the change in residence or
23            school attendance, the applicant who entered the
24            agreement shall notify the department in a manner
25            prescribed by the department.
26                  (ii)    After the applicant has notified the department
27            under this paragraph, the student freedom account shall
28            be closed and any remaining and available money in the
29            student freedom account shall revert to the General Fund.
30            If the former eligible student returns to full-time

20250HB1258PN1403                       - 28 -
 1            attendance at a public school, including a public charter
 2            school or public cyber charter school, in this
 3            Commonwealth, the money in the closed student freedom
 4            account shall be disbursed to the resident school
 5            district of the former eligible student.
 6      (h)   Explanation.--Upon entering into or renewing an
 7   agreement under this section, the department shall provide the
 8   applicant with a written explanation of the authorized uses of
 9   the money in the student freedom account and the
10   responsibilities of the applicant and the department under the
11   agreement and this article. The written explanation shall
12   include a dedicated telephone number that permits an applicant
13   placing a call to speak with an employee of the department who
14   is able to answer questions about, provide information on and
15   provide assistance with the program. The department may not use
16   a computer system or other automated answering system that
17   impedes an applicant placing a call from directly speaking with
18   an employee of the department.
19   Section 2006-N.    Grant.
20      (a)   Deposit.--If an applicant enters into or renews an
21   agreement under section 2005-N with the department for a school
22   year, the department shall deposit a grant for that school year
23   in the student freedom account of the eligible student within 30
24   calendar days of an agreement being entered into by the
25   applicant and the department.
26      (b)   Amount.--The amount of the grant under subsection (a)
27   shall be as follows:
28            (1)   For an eligible student who is not a student with
29      special needs, the grant amount shall be equal to the State
30      revenue received by school districts divided by the State

20250HB1258PN1403                    - 29 -
 1      total average daily membership.
 2            (2)   For an eligible student who is a student with
 3      special needs, the grant amount shall be based on the
 4      category of disability by which the resident school district
 5      is required to categorize the eligible student for the
 6      purpose of the report required under section 1372(8) as
 7      follows:
 8                  (i)    For an eligible student in Category 1, multiply
 9            the grant amount in paragraph (1) by 1.51.
10                  (ii)    For an eligible student in Category 2, multiply
11            the grant amount in paragraph (1) by 3.77.
12                  (iii)   For an eligible student in Category 3A or 3B,
13            multiply the grant amount in paragraph (1) by 7.46.
14            (3)   For an eligible student receiving a grant, the
15      amount of basic education funding and other subsidies paid by
16      the department to the resident school district shall be
17      reduced by the grant amount calculated for the student.
18            (4)   If a school district's basic education funding and
19      other subsidies are reduced under this section, the resident
20      school district shall include the grant recipient in the
21      resident school district's average daily membership for the
22      purpose of calculating school subsidies.
23      (c)   Disposition.--The following shall apply to money
24   remaining in a student freedom account:
25            (1)   For money remaining in a student freedom account at
26      the end of a school year, the money may be carried forward to
27      any other school year of the eligible student if the
28      agreement entered into under section 2005-N is renewed for
29      the other school year.
30            (2)   Subject to paragraph (3), money remaining in a

20250HB1258PN1403                       - 30 -
 1      student freedom account when an agreement entered into under
 2      section 2005-N is not renewed or is terminated shall revert
 3      to the General Fund and be used in the resident school
 4      district of the former eligible student.
 5            (3)   Money remaining in a student freedom account after
 6      the eligible student graduates from high school may be used
 7      for qualified education expenses for up to two years after
 8      the date of high school graduation. After the two-year time
 9      period under this paragraph has expired, money remaining in
10      the student freedom account shall revert to the General Fund.
11   Section 2007-N.       Payments.
12      (a)   Prohibitions.--A participating entity that receives a
13   payment for qualified education expenses may not:
14            (1)   Refund a portion of the payment directly to the
15      applicant who made the payment.
16            (2)   Rebate or otherwise directly share a portion of the
17      payment with the applicant who made the payment.
18      (b)   Refund.--A participating entity shall deposit a refund
19   for an item that is being returned or an item or service that
20   has not been provided directly to the student freedom account of
21   the eligible student from which payment for the item or service
22   was made.
23      (c)   Payment system.--
24            (1)   The department or third-party administrator shall
25      develop a system that enables an applicant to pay for
26      services provided by a participating entity under the program
27      by:
28                  (i)    electronic money transfer, including an
29            electronic payment system and debit card system; or
30                  (ii)   another method approved by the department.

20250HB1258PN1403                       - 31 -
 1            (2)   The department may not adopt a system that
 2      exclusively requires an applicant to be reimbursed for out-
 3      of-pocket expenses.
 4      (d)   Source of payment.--
 5            (1)   An individual may not deposit personal money into or
 6      otherwise make gifts or contributions of private money to a
 7      student freedom account.
 8            (2)   Nothing in this section shall be construed to
 9      prohibit an applicant or eligible student from paying for
10      qualified education expenses from a source other than a
11      student freedom account.
12   Section 2008-N.    Taxability.
13      Money received under this article shall not constitute
14   taxable income to the applicant.
15   Section 2009-N.    Audits.
16      The Department of the Auditor General may:
17            (1)   Conduct periodic audits, including risk-based
18      audits, as deemed necessary by the Auditor General to ensure
19      accuracy and compliance with the provisions of this article.
20            (2)   Refer cases of suspected fraudulent misuse of
21      student freedom accounts to the Office of State Inspector
22      General for investigation. If the investigation results in a
23      finding that rises to the level of criminal activity, the
24      State Inspector General shall refer the matter to the
25      appropriate law enforcement agency for prosecution.
26            (3)   Notify the department of cases of suspected
27      fraudulent misuse that are referred to the Inspector General.
28   Section 2010-N.    Penalties.
29      If the department determines that money in a student freedom
30   account has been fraudulently expended for an expense other than

20250HB1258PN1403                     - 32 -
 1   a qualified education expense, the department may do any of the
 2   following:
 3            (1)   Freeze or dissolve the student freedom account,
 4      subject to regulations adopted by the department providing
 5      for notice of the action and opportunity to respond to the
 6      notice.
 7            (2)   Disqualify the applicant from future participation
 8      in the program.
 9   Section 2011-N.      Accountability standards for a participating
10                  entity.
11      (a)   Compliance.--A participating entity shall:
12            (1)   Comply with all health and safety laws or codes that
13      apply to the participating entity.
14            (2)   Comply with the nondiscrimination policies under
15      section 1521 and 42 U.S.C. § 1981 (relating to equal rights
16      under the law).
17            (3)   Comply with the provisions of sections 111 and
18      111.1.
19      (b)   Financial accountability standards.--
20            (1)   A participating entity shall provide applicants with
21      a receipt for all qualified education expenses incurred by
22      the participating entity.
23            (2)   The department may require a participating entity
24      that expects to receive at least $10,000 in payments from
25      student freedom accounts during the school year to file
26      financial viability documentation, in the form and manner as
27      determined by the department, which may include:
28                  (i)   a surety bond payable to the Commonwealth in an
29            amount equal to the aggregate amount of money from the
30            student freedom accounts expected to be paid during the

20250HB1258PN1403                      - 33 -
 1          school year on behalf of eligible students admitted at
 2          the participating entity; or
 3                (ii)    financial information that demonstrates that
 4          the participating entity has the ability to pay an
 5          aggregate amount equal to the amount of money from the
 6          student freedom accounts expected to be paid during the
 7          school year on behalf of eligible students admitted at
 8          the participating entity.
 9    (c)   Academic accountability standards.--
10          (1)   An applicant shall ensure that the department is
11    informed of the eligible student's graduation from high
12    school.
13          (2)   The department shall:
14                (i)    Ensure compliance with all student privacy laws,
15          including 20 U.S.C. § 1232g (relating to family
16          educational and privacy rights).
17                (ii)    Administer a q

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