HB2308: In institutions of higher education, establishing the PA WORKS Scholarship Grant Program and the…

3041 PRINTER'S NO. THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL 2308 Session of No. 2026 INTRODUCED BY CUTLER, BENNINGHOFF, PICKETT, FEE, OWLETT, KUZMA, STAATS, KUTZ, FRITZ, KOZAK, MENTZER AND PASHINSKI, MARCH 20, 2026 REFERRED TO COMMITTEE ON EDUCATION, MARCH 23, 2026 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 institutions of higher education, 6 establishing the PA WORKS Scholarship Grant Program and the 7 trade career-incentive tax credit. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. Article XX-L of the act of March 10, 1949 11 (P.L.30, No.14), known as the Public School Code of 1949, is 12 amended by adding a subarticle to read: 13 SUBARTICLE E 14 PA WORKS SCHOLARSHIP GRANT PROGRAM 15 Section 2070-L. Definitions. 16 The following words and phrases when used in this subarticle 17 shall have the meanings given to them in this section unless the 18 context clearly indicates otherwise: 19 "Approved course of study." A program offered by an 20 institution of higher education that provides instruction in at

1 least one of the following: 2 (1) Carpentry. 3 (2) Construction safety. 4 (3) Construction management. 5 (4) Electrical construction or maintenance. 6 (5) Heating, ventilation or air conditioning. 7 (6) Masonry construction. 8 (7) Metal fabrication. 9 (8) Plumbing, water or environmental technology. 10 (9) Welding or welding technology. 11 "Business firm." An entity authorized to do business in this 12 Commonwealth and subject to taxes imposed under Article III, IV, 13 VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6, 14 No.2), known as the Tax Reform Code of 1971. 15 "Educational cost." Tuition, mandatory fees, textbooks or 16 other expenses paid to an institution of higher education and 17 approved by the agency. 18 "Grant." A PA WORKS grant awarded under this subarticle. 19 "Institution of higher education." One of the following: 20 (1) An institution of higher education that is located 21 in this Commonwealth and approved by the agency for 22 enrollment of grant recipients under the Higher Education 23 Scholarship Law. 24 (2 ) An institution of higher education established unde r 25 Article XIX-G. 26 "Program." The Pennsylvania Workforce, Opportunity, 27 Retention and Knowledge Scholarship Program, referred to as PA 28 WORKS. 29 "Student." An individual who is a resident of this 30 Commonwealth and is admitted or enrolled at an institution of 20260HB2308PN3041 - 2 -

1 higher education. 2 Section 2071-L. PA WORKS Scholarship Grant Program. 3 The PA WORKS Scholarship Grant Program is established within 4 the agency to award grants beginning in the 2026-2027 school 5 year. 6 Section 2072-L. Agency duties. 7 The agency shall: 8 (1) Administer the program and, in its sole discretion, 9 award grants to students who submit a completed application 10 and satisfy the eligibility criteria in paragraph (4). The 11 agency shall develop an application form that students may 12 use to apply for a grant. The application of a student under 13 18 years of age or a student determined to be a dependent 14 must include the signature of a parent or guardian. 15 (2) Use money appropriated for the purpose of awarding 16 grants, except that the agency may use up to 5% of money 17 appropriated for the purpose of administering, implementing 18 and servicing costs associated with the program. 19 (3) Award a grant to a student in an amount of $5,000 20 per academic year or if the total amount of Federal and State 21 grants available to the student exceeds the educational cost 22 as determined by the agency, whichever is less. The agency, 23 in its discretion, may provide for partial-year awards. 24 (4) Establish eligibility criteria in order for a 25 student to receive a grant. The criteria shall, at a minimum, 26 include that a student must: 27 (i) Be a resident of this Commonwealth as defined by 28 the agency. 29 (ii) Be enrolled in an approved course of study. 30 (iii) Maintain satisfactory academic progress 20260HB2308PN3041 - 3 -

1 defined by the agency. 2 (iv) Not have earned a bachelor's degree or the 3 equivalent. 4 (v) Enter into a written agreement with the agency 5 to: 6 (A) Satisfy all degree requirements and other 7 requirements under this subarticle. 8 (B) Reside and commence employment in this 9 Commonwealth within one year after completion of an 10 approved course of study culminating in a bachelor's 11 or associate's degree. The employment must be in an 12 in-demand occupation, as determined by the agency, 13 for a period of 36 months for each academic year the 14 student received a grant, unless the agency 15 determines that there are extenuating circumstances. 16 If the agency determines that there are no 17 extenuating circumstances, residency and employment 18 in this Commonwealth must be maintained for th e 19 duration of the qualifying employment. 20 (C) Reimburse the Commonwealth the aggregate 21 amount of a scholarship, including interest, received 22 under this subarticle if the student fails to comply 23 with clauses (A) and (B). For a student who partially 24 satisfies the work requirement, the agency shall 25 prorate the required reimbursement. 26 (5) Monitor and verify a student's compliance with the 27 agreement and enforce loan repayment of all grants for a 28 student who does not comply with the provisions of this 29 section, including use of all lawful collection procedures. 30 Nothing under this paragraph shall be construed to require an 20260HB2308PN3041 - 4 -

1 institution of higher education to enforce any provision of 2 this subarticle relating to repayment of funds for failure to 3 comply with the provisions of this section. 4 (6) Advertise, market and provide outreach to students 5 in traditionally underserved communities and include 6 information about the program on the agency's publicly 7 accessible Internet website. 8 (7) Not charge more than the three-month United States 9 Treasury bill rate for interest on any repayment under 10 paragraph (4)(v)(C). 11 (8) Accept donated money from businesses for the purpose 12 of awarding grants. 13 (9) Not award a student a grant upon successful 14 completion of one approved course of study. 15 Section 2073-L. Term of grant. 16 A grant shall be for a maximum of four academic years or the 17 completion of a bachelor's degree, whichever occurs first. 18 Section 2074-L. Grant priority. 19 The agency shall: 20 (1) Establish a process for accepting and reviewing 21 applications. The process shall ensure that applications 22 which meet the eligibility criteria and are complete will be 23 awarded in the order received by the agency. 24 (2) Give renewal applicants the opportunity of first 25 priority in awarding grants for their renewal applications. 26 Section 2075-L. Limitations. 27 The number of grants shall be limited to the amount of money 28 appropriated to the agency for the program. 29 Section 2076-L. Termination. 30 (a) Notification and return of money.--If a student 20260HB2308PN3041 - 5 -

1 terminates enrollment in the approved course of study during the 2 academic year or prior to completion of the approved course of 3 study, the institution of higher education shall notify the 4 agency in writing and shall return any unused portion of the 5 grant to the agency. 6 (b) Construction.--Nothing in this subarticle shall be 7 construed to change a student's eligibility for a grant if the 8 student terminates enrollment in one approved course of study 9 and enrolls in a different approved course of study at the same 10 institution of higher education or another institution of higher 11 education. 12 Section 2077-L. Reimbursed and returned money. 13 Money reimbursed and returned under sections 2072-L and 2076- 14 L shall be used to provide additional grants. 15 Section 2078-L. Taxation. 16 A grant received by a student shall not be considered taxable 17 income for purposes of Article III of the act of March 4, 1971 18 (P.L.6, No.2), known as the Tax Reform Code of 1971. 19 Section 2079-L. Construction. 20 Nothing in this subarticle shall be construed to disqualify 21 an institution of higher education from receipt of money under 22 the act of July 18, 1974 (P.L.483, No.174), known as The 23 Institutional Assistance Grants Act. 24 Section 2080-L. Trade career-incentive tax credit. 25 (a) Establishment.--A trade career-incentive tax credit is 26 established to supplement existing Federal and State funding 27 appropriated for grants awarded under the program. 28 (b) Application.--A business firm applying to claim a trade 29 career-incentive tax credit must complete and submit to the 30 Department of Revenue a trade career-incentive tax credit 20260HB2308PN3041 - 6 -

1 application on a form and in a manner as determined by the 2 Department of Revenue. 3 (c) Approval.--If the Department of Revenue approves the 4 business firm's application, the Department of Revenue and the 5 business firm shall execute a commitment letter containing the 6 following: 7 (1) The maximum trade career-incentive tax credit amount 8 the business firm may claim. 9 (2) A signed statement that the business firm intends to 10 maintain existing operations in this Commonwealth for at 11 least five years from the start date. 12 (3) Any other information as the Department of Revenue 13 deems appropriate. 14 (4) A statement authorizing the credit as a single-year 15 or multiple-year credit. 16 (d) Certificate.--After a commitment letter has been signed 17 by both the Commonwealth and the business firm, the business 18 firm shall receive a trade career-incentive tax credit 19 certificate and filing information. 20 Section 2081-L. Public outreach. 21 The agency shall: 22 (1) Actively advertise and market the program to 23 resident students and include information about the program 24 on the agency's publicly accessible Internet website. 25 (2) Establish guidelines to advertise the trade career- 26 incentive tax credit to eligible business firms. 27 Section 2082-L. Report. 28 The agency shall prepare and submit to the Governor, the 29 General Assembly and the Secretary of Education an annual report 30 detailing the operation of the program each year. The report 20260HB2308PN3041 - 7 -

1 shall, at a minimum, include: 2 (1) The number of new grant applicants and renewal grant 3 applications. 4 (2) The number of grants awarded to students. 5 (3) The number of grants awarded to students by an 6 approved course of study. 7 (4) The number of grants awarded to students by an 8 institution of higher education. 9 (5) The average value of a grant award. 10 (6) The number of grant recipients that are employed and 11 meeting the work requirement under section 2072-L(4)(v)(B). 12 (7) The number of grant recipients that are employed and 13 meeting the work requirement by occupation. 14 (8) The number of grant recipients that have not met the 15 work requirement. 16 (9) The amount of money reimbursed to the Commonwealth 17 by grant recipients that have not met the work requirement. 18 Section 2. This act shall take effect in 60 days. 20260HB2308PN3041 - 8 -