Pennsylvania Statutes Title 24 P.S. Education § 6901.318. Scholarship programs

(a) Establishment.--The Commonwealth, any political subdivision of the Commonwealth and any organization that is exempt from Federal income taxation under section 501(a)  1 and described in section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501), including the department, if not prohibited by section 529 of the Internal Revenue Code of 1986, may establish a scholarship program through a Tuition Account Program Contract to award scholarships. Any scholarship program created pursuant to this section shall be registered with the department and shall comply with such requirements as the department may establish. Scholarship beneficiaries shall be selected by the entity establishing the scholarship program in accordance with criteria established by the entity, and the entity may change the beneficiary as permitted by section 529 of the Internal Revenue Code of 1986.

(b) Contributions.--Any person or legal entity may make contributions on behalf of a scholarship program that is or is to be established in accordance with this section under the same terms and conditions as those that apply to nonscholarship tuition accounts. A beneficiary of a Tuition Account Program Contract entered into as part of a scholarship program shall be entitled to payment of qualified higher education expenses under the same terms and conditions as those that apply to beneficiaries of nonscholarship tuition accounts.

(c) No requirement.--Nothing in this act shall require the creation of a scholarship account or authorize the use of State funds for such accounts.