Download Zipped Introduced WordPerfect SB0071S01.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute S.B. 71

Senator Aaron Osmond proposes the following substitute bill:


             1     
RESULTS-BASED FINANCING FOR EARLY CHILDHOOD

             2     
EDUCATION

             3     
2013 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Aaron Osmond

             6     
House Sponsor: Gregory H. Hughes

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill creates the Results-based Early Education Board, which may enter into certain
             11      contracts with private entities to provide funding for early childhood education
             12      programs for at-risk students.
             13      Highlighted Provisions:
             14          This bill:
             15          .    defines terms;
             16          .    creates the Results-based Early Education Restricted Account;
             17          .    creates the Results-based Early Education Board (board) to negotiate contracts with
             18      private entities to fund certain early education programs;
             19          .    requires the State Board of Education to approve contracts of the board;
             20          .    requires the repayment to private entities to be conditioned on meeting performance
             21      outcomes set in the contract;
             22          .    requires an independent evaluation of the performance outcomes;
             23          .    requires the State Board of Education to staff the board;
             24          .    allows the board no more than $10,000,000 of outstanding obligations or the
             25      funding of more than 3% of the total public school enrollment at any one time;


             26          .    details components of a high quality preschool program that may be funded through
             27      a results-based contract between the board and private entities;
             28          .    describes a home-based technology program that may be funded through a
             29      results-based contract between the board and private entities; and
             30          .    establishes reporting requirements.
             31      Money Appropriated in this Bill:
             32          This bill appropriates in fiscal year 2014:
             33          .    to the General Fund Restricted - Results-based Early Education Restricted Account,
             34      as an ongoing appropriation:
             35              .    from the General Fund, $1,000,000
             36          .    to State Board of Education - Utah State Office of Education
             37              .    from the Results-based Early Education Restricted Account, $75,000
             38          .    to State Board of Education - Utah State Office of Education - Initiative Programs
             39              .    from the Results-based Early Education Restricted Account, $100,000.
             40      Other Special Clauses:
             41          This bill provides an effective date.
             42      Utah Code Sections Affected:
             43      ENACTS:
             44          53A-1b-101, Utah Code Annotated 1953
             45          53A-1b-102, Utah Code Annotated 1953
             46          53A-1b-103, Utah Code Annotated 1953
             47          53A-1b-104, Utah Code Annotated 1953
             48          53A-1b-105, Utah Code Annotated 1953
             49          53A-1b-106, Utah Code Annotated 1953
             50          53A-1b-107, Utah Code Annotated 1953
             51     
             52      Be it enacted by the Legislature of the state of Utah:
             53          Section 1. Section 53A-1b-101 is enacted to read:
             54     
CHAPTER 1b. RESULTS-BASED FINANCING

             55     
Part 1. Results-based Early Education Act

             56          53A-1b-101. Title.


             57          This chapter is known as "Results-based Financing."
             58          Section 2. Section 53A-1b-102 is enacted to read:
             59          53A-1b-102. Legislative findings.
             60          (1) The Legislature reaffirms its findings in Section 53A-6-102 and states that the
             61      primary responsibility for the education of children within the state resides with parents or
             62      guardians and that the role of state and local governments is to support and assist parents in
             63      fulfilling that responsibility.
             64          (2) The Legislature finds that:
             65          (a) most preschool-age children are better off when educated at home by the child's
             66      parent or guardian;
             67          (b) there is evidence that some targeted at-risk preschool-age children do benefit from
             68      access to high quality early education programs;
             69          (c) high quality early education programs for at-risk children represent special and
             70      limited services, which are only appropriate when they are voluntary educational options to
             71      parents or guardians of at-risk children; and
             72          (d) in establishing these special and limited services, state and local governments
             73      should emphasize the importance of the parent as the child's first and most important teacher,
             74      and should encourage parents to engage in the education of children at home.
             75          Section 3. Section 53A-1b-103 is enacted to read:
             76          53A-1b-103. Definitions.
             77          As used in this part:
             78          (1) "Board" means the Results-based Early Education Board, created in Section
             79      53A-1b-104 .
             80          (2) "Economically disadvantaged" means a student who:
             81          (a) is eligible to receive free lunch;
             82          (b) is eligible to receive reduced price lunch; or
             83          (c) (i) is not otherwise accounted for in Subsection (2)(a) or (b); and
             84          (ii) (A) is enrolled in a Provision 2 or Provision 3 school, as defined by the United
             85      States Department of Agriculture;
             86          (B) has a Declaration of Household Income on file;
             87          (C) is eligible for a fee waiver; or


             88          (D) is enrolled at a school that does not offer a lunch program and is a sibling of a
             89      student accounted for in Subsection (2)(a) or (b).
             90          (3) "Eligible home-based educational technology provider" means a provider that
             91      intends to offer a home-based educational technology program through a results-based contract.
             92          (4) "Eligible LEA" means an LEA that:
             93          (a) receives federal money under Title I of the No Child Left Behind Act of 2001, 20
             94      U.S.C. Sec. 6301-6578, for a school-wide or targeted assistance program;
             95          (b) agrees to fund a portion of its preschool program funded under this part with
             96      federal funds described in Subsection (4)(a); and
             97          (c) has a data system capacity to collect longitudinal academic outcome data, including
             98      special education use by student, by identifying each student with a statewide unique student
             99      identifier.
             100          (5) (a) "Eligible private provider" means a child care program that:
             101          (i) (A) except as provided in Subsection (5)(b), is licensed under Title 26, Chapter 39,
             102      Utah Child Care Licensing Act; or
             103          (B) is exempt from licensure under Section 26-39-403 ; and
             104          (ii) meets other criteria as established by the board, consistent with Utah Constitution
             105      Article X, Section 1.
             106          (b) "Eligible private provider" does not include a residential child care, as defined in
             107      Section 26-39-102 .
             108          (6) "Eligible student" means a student who:
             109          (a) lives in the attendance boundaries of an eligible LEA; and
             110          (b) (i) is economically disadvantaged; or
             111          (ii) is classified as an English language learner.
             112          (7) "Local Education Agency" or "LEA" means a school district or charter school.
             113          (8) "Performance outcome measure" means:
             114          (a) a cost avoidance in special education use for a student funded pursuant to a contract
             115      under this part; and
             116          (b) an academic achievement outcome for a student funded pursuant to a contract
             117      under this part.
             118          (9) "Results-based contract" means a contract entered into by the board, a private


             119      entity, and a provider of early childhood education that may result in repayment to a private
             120      entity if certain performance outcome measures are achieved.
             121          Section 4. Section 53A-1b-104 is enacted to read:
             122          53A-1b-104. Results-based Early Education Restricted Account -- Creation --
             123      Funding -- Distribution of funds.
             124          (1) There is created a restricted account in the General Fund known as the
             125      "Results-based Early Education Restricted Account" to fund results-based contracts for eligible
             126      students to participate in:
             127          (a) a high quality preschool program described in Section 53A-1b-106 ; or
             128          (b) a home-based educational technology program described in Section 53A-1b-107 .
             129          (2) The restricted account consists of:
             130          (a) money appropriated to the restricted account by the Legislature;
             131          (b) all income and interest derived from the deposit and investment of money in the
             132      account;
             133          (c) federal grants; and
             134          (d) private donations.
             135          (3) The board shall distribute funds in the restricted account in accordance with
             136      Subsection (4) to one or more private entities that the board has entered into a results-based
             137      contract with if the independent evaluator determines that the performance-based results have
             138      been met.
             139          (4) (a) At the end of each year of a results-based contract, the independent evaluator
             140      shall determine whether the performance outcome measures set in the results-based contract
             141      have been met.
             142          (b) If the independent evaluator determines under Subsection (4)(a) that the
             143      performance outcome measures have been met, the board shall determine what the repayment
             144      to the private entity for that year would be, but not pay the private entity until the end of the
             145      fourth year of the results-based contract.
             146          (c) The fourth year payment described in Subsection (4)(b) shall include each annual
             147      accrued payment plus interest.
             148          (d) After the fourth year, the board may pay the private entity on an annual basis, if the
             149      independent evaluator determines that the performance outcome measures set in the


             150      results-based contract have been met.
             151          (5) The Legislature may appropriate no more than:
             152          (a) $75,000 annually from the restricted account for administrative purposes; and
             153          (b) $100,000 annually from the restricted account for the independent evaluation of the
             154      performance outcome measures by an independent evaluator required under Section
             155      53A-1b-105 .
             156          Section 5. Section 53A-1b-105 is enacted to read:
             157          53A-1b-105. Establishment of the Results-based Early Education Board --
             158      Membership -- Duties.
             159          (1) There is created a Results-based Early Education Board composed of:
             160          (a) the director of the Department of Workforces Services or the director's designee;
             161          (b) the state treasurer or the treasurer's designee;
             162          (c) the superintendent of public instruction or the superintendent's designee;
             163          (d) two members of the State Board of Education, appointed by the chair of the State
             164      Board of Education; and
             165          (e) the following individuals appointed by the governor:
             166          (i) two representatives of nonprofit entities that study or advocate for early childhood
             167      education;
             168          (ii) an attorney with expertise in financial contracts; and
             169          (iii) a child development expert.
             170          (2) (a) A member described in Subsection (1)(e) shall serve for a term of two years.
             171          (b) If a vacancy occurs for a member described in Subsection (1)(e), the governor shall
             172      appoint a replacement to serve the remainder of the member's term.
             173          (3) A member may not receive compensation or benefits for the member's service.
             174          (4) Upon request, the State Board of Education shall provide staff support to the board.
             175          (5) (a) The board members shall elect a chair of the board from the board's
             176      membership.
             177          (b) The board shall meet upon the call of the chair or a majority of the board members.
             178          (6) (a) The board may negotiate and enter into a results-based contract with a private
             179      entity, selected through a competitive process, to fund a high quality preschool program
             180      described in Section 53A-1b-106 or a home-based education technology program described in


             181      Section 53A-1b-107 .
             182          (b) The board may provide for a repayment to a private entity to include a return of
             183      investment and an additional return on investment, dependent on achievement of specific
             184      performance outcome measures set in the results-based contract.
             185          (c) Funding obtained for an early education program under this part is not a
             186      procurement item under Section 63G-6a-103 .
             187          (7) A contract shall include:
             188          (a) a requirement that the repayment to the private entity be conditioned on specific
             189      performance outcome measures set in the results-based contract;
             190          (b) a requirement for an independent evaluator to determine whether the performance
             191      outcomes have been achieved;
             192          (c) a provision that repayment to the private entity is:
             193          (i) based upon available money in the Results-based Early Education Restricted
             194      Account; and
             195          (ii) subject to legislative appropriation;
             196          (d) that the contract is subject to final approval by the State Board of Education; and
             197          (e) the private entity is not eligible to receive or view any personally-identifiable
             198      student data funded through a results-based contract.
             199          (8) The board may not issue a results-based contract if:
             200          (a) the total outstanding obligations of results-based contracts issued by the board
             201      under this part would exceed $10,000,000; or
             202          (b) the total number of at-risk students currently being funded under this part would
             203      exceed 3% of the state's total enrollment of students in public schools.
             204          (9) The State Board of Education shall, by majority vote, approve or deny a
             205      results-based contract within 30 days after the day on which the board submits the results-based
             206      contract to the State Board of Education for approval.
             207          (10) (a) Subject to Subsection (10)(b), the board shall select an independent,
             208      nationally-recognized early childhood education evaluator, selected through a request for
             209      proposals process, to annually evaluate performance outcome measures set in a results-based
             210      contract of the board.
             211          (b) The State Board of Education shall approve or deny the selection of the


             212      independent evaluator chosen in accordance with Subsection (10)(a).
             213          (c) If the State Board of Education approves the selection of the independent evaluator
             214      chosen in accordance with Subsection (10)(a), the State Board of Education shall contract with
             215      the independent evaluator to evaluate performance outcome measures set in a results-based
             216      contract of the board.
             217          (11) The board shall select a uniform assessment that:
             218          (a) is a nationally norm-based measure of age-appropriate cognitive or language skills;
             219          (b) has established reliability; and
             220          (c) has established validity with other similar measures and with later school outcomes.
             221          (12) The private entity may attain capital from a private investor or third party funding
             222      source.
             223          (13) (a) The board shall ensure that a parent or guardian of an eligible student
             224      participating in a program funded pursuant to a results-based contract has given permission and
             225      signed an annual acknowledgment that the student's data may be shared with an independent
             226      evaluator for research and evaluation purposes.
             227          (b) The board shall maintain documentation of parental permission required in
             228      Subsection (13)(a).
             229          Section 6. Section 53A-1b-106 is enacted to read:
             230          53A-1b-106. High quality preschool.
             231          (1) To receive funding pursuant to a results-based contract awarded under Section
             232      53A-1b-105 , an eligible LEA shall establish or currently operate a high quality preschool, and
             233      pursuant to Subsection (7) partner with a private entity providing high quality preschool, with
             234      the following components:
             235          (a) a research-based curriculum that addresses the following developmental domains
             236      through explicit instruction in whole and small group settings:
             237          (i) oral language and listening comprehension;
             238          (ii) phonological awareness and prereading;
             239          (iii) alphabet and word knowledge;
             240          (iv) prewriting, fine motor, and visual arts;
             241          (v) book knowledge and print awareness;
             242          (vi) numeracy;


             243          (vii) social and emotional;
             244          (viii) gross motor and performing arts;
             245          (ix) science and technology; and
             246          (x) social studies, health, and safety;
             247          (b) ongoing, focused, and intensive professional development for staff of the preschool
             248      program;
             249          (c) ongoing assessment of a student's educational growth and developmental progress
             250      to inform instruction;
             251          (d) a pre- and post-assessment, selected by the board in accordance with Section
             252      53A-1b-105 , of each student;
             253          (e) a class size that does not exceed 20 students, with one adult for every 10 students in
             254      the class;
             255          (f) ongoing program evaluation and data collection to monitor program goal
             256      achievement and implementation of required program components;
             257          (g) monthly family involvement, including class participation, frequent communication
             258      between home and school, and parent education opportunities based on each family's
             259      circumstances; and
             260          (h) teachers with at least a bachelor's degree or a child development associate
             261      certification.
             262          (2) An eligible LEA shall assign a statewide unique student identifier to each eligible
             263      student funded pursuant to a results-based contract issued under this part.
             264          (3) An eligible LEA may not use funds awarded pursuant to a results-based contract to
             265      supplant funds for an existing high quality preschool program, but may use the funds to
             266      supplement an existing high quality preschool program.
             267          (4) If permitted under Title 1 of the No Child Left Behind Act of 2001, 20 U.S.C. Sec.
             268      6301-6578, an LEA may charge a sliding scale fee to a student participating in a high quality
             269      preschool program under this section, based on household income.
             270          (5) A student funded pursuant to a results-based contract may not exceed the following
             271      amount of time in the classroom:
             272          (a) 16 hours per week for a four-year-old student; and
             273          (b) 12 hours per week for a three-year-old student.


             274          (6) (a) An LEA that receives funds under this section shall report annually to the board
             275      the following de-identified information for eligible students funded in whole or in part pursuant
             276      to a results-based contracts:
             277          (i) number of eligible students served by the LEA's preschool, reported by
             278      economically disadvantaged status and English language learner status;
             279          (ii) attendance;
             280          (iii) cost per eligible student;
             281          (iv) assessment results of the pre- and post-assessments selected by the board; and
             282          (v) aggregated longitudinal data on eligible students currently receiving funding under
             283      this part and any eligible students who previously received funding under this part, including:
             284          (A) academic achievement outcomes;
             285          (B) special education use; and
             286          (C) English language learner services.
             287          (b) For each year of a results-based contract, the board shall report to the Education
             288      Interim Committee the following:
             289          (i) information collected under Subsection (6)(a) for each participating LEA; and
             290          (ii) the terms of the results-based contract, including:
             291          (A) the name of each private entity and funding source;
             292          (B) the amount of money each private entity has invested;
             293          (C) the performance outcome measures set in the results-based contract by which
             294      repayment will be determined; and
             295          (D) the repayment schedule to the private entity if the performance outcomes are met.
             296          (7) (a) Except as provided in Subsection (11), an eligible LEA shall contract with an
             297      eligible private provider, located within the LEA's attendance boundaries, to provide the high
             298      quality preschool program to a portion of the LEA's eligible students funded by a results-based
             299      contract.
             300          (b) The board shall determine in the a results-based contract the portion of an LEA's
             301      eligible students funded by the results-based contract to be served by an eligible private
             302      provider.
             303          (8) (a) Except as provided in Subsection (8)(b), to receive funding pursuant to a
             304      results-based contract, an eligible private provider shall:


             305          (i) offer a preschool program that contains the components described in Section
             306      53A-1b-106 ;
             307          (ii) align its assessments, early learning standards, and professional development with
             308      the contracting LEA;
             309          (iii) allow classroom visits by the contracting LEA, the evaluator chosen in accordance
             310      with Section 53A-1b-105 , the board, the private entity, or the State Board of Education, to
             311      ensure the components described in Subsection (8)(a) are being implemented;
             312          (iv) (A) allow the contracting LEA to administer the required pre- and
             313      post-assessments to eligible students funded under this part; or
             314          (B) at the discretion of the contracting LEA, administer the required pre- and
             315      post-assessments to students funded under this part; and
             316          (v) report the information described in Subsection (6)(a) to the contracting LEA.
             317          (b) (i) An eligible private provider is not required to meet the requirements of
             318      Subsection (1)(e).
             319          (ii) An eligible private provider is not required to meet the requirements of Subsection
             320      (1)(h) for each teacher the first year the teacher teaches in the preschool, but an eligible private
             321      provider shall ensure that a teacher meet the requirements of Subsection (1)(h) by the teacher's
             322      second year.
             323          (9) An LEA may provide the eligible private provider with:
             324          (a) professional development;
             325          (b) staffing or staff support;
             326          (c) materials; and
             327          (d) assessments.
             328          (10) (a) If permitted under Title 1 of the No Child Left Behind Act of 2001, 20 U.S.C.
             329      Sec. 6301-6578, an eligible private provider may charge a sliding scale fee to a student
             330      participating in a high quality preschool program under this section, based on household
             331      income.
             332          (b) The eligible private provider may use grants, scholarships, or other funds to help
             333      fund the preschool program.
             334          (11) If there is no eligible private provider that is willing to contract with an eligible
             335      LEA, the eligible LEA is not required to contract with an eligible private provider.


             336          (12) A contractual partnership established under Subsection (7) shall be consistent with
             337      Utah Constitution Article X, Section 1.
             338          (13) The evaluator selected pursuant to Section 53A-1b-105 shall annually evaluate:
             339          (a) the quality and outcomes of the high quality preschool program funded by a
             340      results-based contract between a private entity and the board, including:
             341          (i) adherence to required components described in Subsection (1); and
             342          (ii) the pre- and post-assessment results of the assessment, designated by the board
             343      under Section 53A-1b-105 , of eligible students in the high quality preschool program; and
             344          (b) whether or not the performance outcome measures set in the results-based contract
             345      have been met, using de-identified data reported in Subsection (6).
             346          Section 7. Section 53A-1b-107 is enacted to read:
             347          53A-1b-107. Home-based educational technology for school readiness.
             348          (1) To receive funding pursuant to a results-based contract awarded under Section
             349      53A-1b-105 , an eligible home-based educational technology provider shall administer a
             350      home-based educational technology program designed to prepare eligible students for
             351      kindergarten.
             352          (2) A program described in Subsection (1) shall:
             353          (a) be an evidence-based and age appropriate interactive computer program that
             354      teaches eligible students early literacy and numeracy skills needed to be successful upon entry
             355      into kindergarten;
             356          (b) require regular parental engagement with the student in the student's use of the
             357      home-based educational technology program;
             358          (c) be aligned to the Utah early childhood core standards in language arts and
             359      mathematics;
             360          (d) have a component requiring the pre- and post-assessment, designated by the board
             361      in accordance with Section 53A-1b-105 , of each eligible student;
             362          (e) provide technical support to families for the installation and operation of the
             363      instructional software; and
             364          (f) provide for the installation of computer and Internet access in homes of families that
             365      cannot afford the equipment or service.
             366          (3) An eligible home-based educational technology provider shall work in conjunction


             367      with the State Board of Education to assign a statewide unique student identifier to each
             368      eligible student funded pursuant to a results-based contract.
             369          (4) An eligible home-based educational technology provider may not use funds
             370      awarded pursuant to a results-based contract to supplant funds for an existing home-based
             371      educational technology program funded by the state, but may use the funds to supplement an
             372      existing home-based educational technology program.
             373          (5) If permitted under Title 1 of the No Child Left Behind Act of 2001, 20 U.S.C. Sec.
             374      6301-6578, an eligible home-based educational technology provider may charge a sliding scale
             375      fee to a student participating in a home-based educational technology program under this
             376      section, based on household income.
             377          (6) (a) An eligible home-based educational technology provider that receives funds
             378      under this section shall report annually to the board the following de-identified information for
             379      eligible students funded in whole or in part pursuant to a results-based contract:
             380          (i) number of eligible students served by the home-based educational technology
             381      program, reported by economically disadvantaged status and English language learner status;
             382          (ii) average time, and range of time usage, an eligible student spent using the program
             383      per week;
             384          (iii) cost per eligible student;
             385          (iv) assessment results of the pre- and post-assessments selected by the board; and
             386          (v) number of eligible students served by the home-based educational technology
             387      program who participated in any other public or private preschool program, including the type
             388      of preschool attended.
             389          (b) For each year of a results-based contract, the board shall report to the Education
             390      Interim Committee the following:
             391          (i) information collected under Subsection (6)(a) for each participating eligible
             392      home-based educational technology provider; and
             393          (ii) the terms of the results-based contract, including:
             394          (A) the name of each private entity and funding source;
             395          (B) the amount of money each private entity has invested;
             396          (C) the performance outcome measures set in the results-based contract, by which
             397      repayment will be determined; and


             398          (D) the repayment schedule to the private entity if the performance outcomes are met.
             399          (7) The State Board of Education shall report annually to the board aggregated
             400      longitudinal data on eligible students currently receiving funding under this section and any
             401      eligible students who previously received funding under this section, including;
             402          (a) academic achievement outcomes;
             403          (b) special education use; and
             404          (c) English language learner services.
             405          (8) The evaluator selected pursuant to Section 53A-1b-105 shall annually evaluate:
             406          (a) the quality and outcomes of a home-based technology program funded by a
             407      results-based contract between a private entity and the board, including the pre- and
             408      post-assessment results, of the assessment designated by the board under Section 53A-1b-105 ,
             409      of eligible students in the program; and
             410          (b) whether or not the performance outcome measures set in the results-based contract
             411      have been met, using de-identified data reported in Subsections (6) and (7).
             412          Section 8. Appropriation.
             413          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
             414      the fiscal year beginning July 1, 2013, and ending June 30, 2014, the following sums of money
             415      are appropriated from resources not otherwise appropriated, or reduced from amounts
             416      previously appropriated, out of the funds or accounts indicated. These sums of money are in
             417      addition to any amounts previously appropriated for fiscal year 2014.
             418          To General Fund Restricted - Results-based Early
             419          Education Restricted Account
             420              From General Fund
$1,000,000

             421              Schedule of Programs:
             422                  General Fund Restricted - Results-based Early Education
             423                   Restricted Account                $1,000,000
             424          To State Board of Education - State Office of Education
             425              From Results-based Early Education Restricted Account
$75,000

             426              Schedule of Programs:
             427                  Board and Administration            $75,000
             428          To State Board of Education - State Office of Education - Initiative Programs


             429              From Results-based Early Education Restricted Account
$100,000

             430              Schedule of Programs:
             431                  Contracts and Grants            $100,000
             432          The Legislature intends that:
             433          (1) the $75,000 appropriation under this section be used to carry out administrative
             434      duties pursuant to Subsection 53A-1b-105 (4); and
             435          (2) the $100,000 appropriation under this section be used to carry out the requirements
             436      of Subsection 53A-1b-105 (10).
             437          Section 9. Effective date.
             438          (1) Except as provided in Subsection (2), this bill takes effect on May 14, 2013.
             439          (2) Uncodified Section 8, Appropriation, takes effect on July 1, 2013.


[Bill Documents][Bills Directory]