H.B. 96 Enrolled

             1     

UTAH SCHOOL READINESS INITIATIVE

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gregory H. Hughes

             5     
Senate Sponsor: Stephen H. Urquhart

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill creates the School Readiness Board, which provides grants to certain early
             10      childhood education programs, and may enter into certain contracts with private entities
             11      to provide funding for early childhood education programs for at-risk students.
             12      Highlighted Provisions:
             13          This bill:
             14          .    creates the School Readiness Restricted Account;
             15          .    creates the School Readiness Board (board) to negotiate contracts with private
             16      entities to fund certain early childhood education programs and award grants to
             17      certain early childhood education programs;
             18          .    details components of a high quality school readiness program that may be funded
             19      through a results-based contract between the board and private entities;
             20          .    describes a home-based educational technology program that may be funded
             21      through a results-based contract between the board and a private entity or entities;
             22          .    requires the State Board of Education and the Department of Workforce Services to:
             23              .    solicit proposals from qualifying early childhood education programs for quality
             24      school readiness grants;
             25              .    make recommendations to the board to award grants to qualifying early
             26      childhood education programs;
             27              .    monitor and evaluate the programs; and
             28              .    develop policies and enact rules;
             29          .    requires the board to award grants to qualifying early childhood education programs


             30      based on recommendations of the State Board of Education and the Department of Workforce
             31      Services and other criteria;
             32          .    requires the Governor's Office of Management and Budget to staff the board;
             33          .    requires the repayment to private entities to be conditioned on meeting performance
             34      outcomes set in the contract;
             35          .    requires an independent evaluation of the performance outcomes;
             36          .    allows the board no more than $15,000,000 of outstanding obligations at any one
             37      time;
             38          .    exempts the awarding of a results-based contract from general procurement
             39      requirements; and
             40          .    establishes reporting requirements.
             41      Money Appropriated in this Bill:
             42          This bill appropriates in fiscal year 2015:
             43          .    to the General Fund Restricted - School Readiness Restricted Account, as an
             44      ongoing appropriation:
             45              .    from the General Fund, $3,000,000; and
             46          .    to Governor's Office - Governor's Office of Management and Budget, as an ongoing
             47      appropriation:
             48              .    from the School Readiness Restricted Account, $3,000,000.
             49      Other Special Clauses:
             50          This bill provides an effective date.
             51      Utah Code Sections Affected:
             52      AMENDS:
             53           63J-1-602.3 , as last amended by Laws of Utah 2013, Chapters 117, 295 and last
             54      amended by Coordination Clause, Laws of Utah 2013, Chapter 117
             55      ENACTS:
             56           53A-1b-101 , Utah Code Annotated 1953
             57           53A-1b-102 , Utah Code Annotated 1953


             58           53A-1b-103 , Utah Code Annotated 1953
             59           53A-1b-104 , Utah Code Annotated 1953
             60           53A-1b-105 , Utah Code Annotated 1953
             61           53A-1b-106 , Utah Code Annotated 1953
             62           53A-1b-107 , Utah Code Annotated 1953
             63           53A-1b-108 , Utah Code Annotated 1953
             64           53A-1b-109 , Utah Code Annotated 1953
             65           53A-1b-110 , Utah Code Annotated 1953
             66           53A-1b-111 , Utah Code Annotated 1953
             67     
             68      Be it enacted by the Legislature of the state of Utah:
             69          Section 1. Section 53A-1b-101 is enacted to read:
             70     
CHAPTER 1b. SCHOOL READINESS INITIATIVE

             71     
Part 1. School Readiness Initiative Act

             72          53A-1b-101. Title.
             73          This chapter is known as "School Readiness Initiative."
             74          Section 2. Section 53A-1b-102 is enacted to read:
             75          53A-1b-102. Definitions.
             76          As used in this part:
             77          (1) "Board" means the School Readiness Board, created in Section 53A-1b-103 .
             78          (2) "Economically disadvantaged" means a student who:
             79          (a) is eligible to receive free lunch;
             80          (b) is eligible to receive reduced price lunch; or
             81          (c) (i) is not otherwise accounted for in Subsection (2)(a) or (b); and
             82          (ii) (A) is enrolled in a Provision 2 or Provision 3 school, as defined by the United
             83      States Department of Agriculture;
             84          (B) has a Declaration of Household Income on file;
             85          (C) is eligible for a fee waiver; or


             86          (D) is enrolled at a school that does not offer a lunch program and is a sibling of a
             87      student accounted for in Subsection (2)(a) or (b).
             88          (3) "Eligible home-based educational technology provider" means a provider that
             89      intends to offer a home-based educational technology program.
             90          (4) "Eligible LEA" means an LEA that has a data system capacity to collect
             91      longitudinal academic outcome data, including special education use by student, by identifying
             92      each student with a statewide unique student identifier.
             93          (5) (a) "Eligible private provider" means a child care program that:
             94          (i) (A) except as provided in Subsection (5)(b), is licensed under Title 26, Chapter 39,
             95      Utah Child Care Licensing Act; or
             96          (B) is exempt from licensure under Section 26-39-403 ; and
             97          (ii) meets other criteria as established by the board, consistent with Utah Constitution,
             98      Article X, Section 1.
             99          (b) "Eligible private provider" does not include residential child care, as defined in
             100      Section 26-39-102 .
             101          (6) "Eligible student" means a student who is economically disadvantaged.
             102          (7) "Local Education Agency" or "LEA" means a school district or charter school.
             103          (8) "Performance outcome measure" means a cost avoidance in special education use
             104      for a student at-risk for later special education placement in kindergarten through grade 12 who
             105      receives preschool education funded pursuant to a results-based school readiness contract.
             106          (9) (a) "Private entity" means a private investor or investors that enter into a
             107      results-based school readiness contract.
             108          (b) "Private entity" includes an authorized representative of the private investor or
             109      investors.
             110          (10) "Results-based school readiness contract" means a contract entered into by the
             111      board, a private entity, and a provider of early childhood education that may result in
             112      repayment to a private entity if certain performance outcome measures are achieved.
             113          (11) "Student at-risk for later special education placement" means a preschool student


             114      who, at preschool entry, scores at or below two standard deviations below the mean on the
             115      assessment selected by the board under Section 53A-1b-110 .
             116          Section 3. Section 53A-1b-103 is enacted to read:
             117          53A-1b-103. Establishment of the School Readiness Board -- Membership.
             118          (1) There is created a School Readiness Board within the Governor's Office of
             119      Management and Budget composed of:
             120          (a) the director of the Department of Workforces Services or the director's designee;
             121          (b) one member appointed by the State Board of Education;
             122          (c) one member appointed by the chair of the State Charter School Board;
             123          (d) one member appointed by the speaker of the House of Representatives; and
             124          (e) one member appointed by the president of the Senate.
             125          (2) (a) A member described in Subsections (1)(c), (d), and (e) shall serve for a term of
             126      two years.
             127          (b) If a vacancy occurs for a member described in Subsection (1)(c), (d), or (e), the
             128      person appointing the member shall appoint a replacement to serve the remainder of the
             129      member's term.
             130          (3) A member may not receive compensation or benefits for the member's service.
             131          (4) Upon request, the Governor's Office of Management and Budget shall provide staff
             132      support to the board.
             133          (5) (a) The board members shall elect a chair of the board from the board's
             134      membership.
             135          (b) The board shall meet upon the call of the chair or a majority of the board members.
             136          Section 4. Section 53A-1b-104 is enacted to read:
             137          53A-1b-104. School Readiness Restricted Account -- Creation -- Funding --
             138      Distribution of funds.
             139          (1) There is created in the General Fund a restricted account known as the "School
             140      Readiness Restricted Account" to fund:
             141          (a) the High Quality School Readiness Grant Program described in Section


             142      53A-1b-106 ; and
             143          (b) results-based school readiness contracts for eligible students to participate in:
             144          (i) a high quality preschool program described in:
             145          (A) Section 53A-1b-107 ; or
             146          (B) Section 53A-1b-108; or
             147          (ii) an eligible home-based educational technology program described in Section
             148      53A-1b-109 .
             149          (2) The restricted account consists of:
             150          (a) money appropriated to the restricted account by the Legislature;
             151          (b) all income and interest derived from the deposit and investment of money in the
             152      account;
             153          (c) federal grants; and
             154          (d) private donations.
             155          (3) Subject to legislative appropriations, money in the restricted account may be used
             156      for the following purposes:
             157          (a) to award grants under the High Quality School Readiness Grant Program described
             158      in Section 53A-1b-106 ;
             159          (b) to contract with an independent evaluator as required in Subsection 53A-1b-110 (3);
             160          (c) in accordance with Section 53A-1b-110 , to make payments to one or more private
             161      entities that the board has entered into a results-based contract with if the independent
             162      evaluator selected by the board determines that the performance-based results have been met;
             163      and
             164          (d) for administration costs and to monitor the programs described in this part.
             165          Section 5. Section 53A-1b-105 is enacted to read:
             166          53A-1b-105. Elements of a high quality school readiness program.
             167          (1) A high quality school readiness program run by an eligible LEA or eligible private
             168      provider shall include the following components:
             169          (a) an evidence-based curriculum that is aligned with all of the developmental domains


             170      and academic content areas defined in the Utah Early Childhood Standards adopted by the
             171      State Board of Education, and incorporates intentional and differentiated instruction in whole
             172      group, small group, and child-directed learning, including the following academic content
             173      areas:
             174          (i) oral language and listening comprehension;
             175          (ii) phonological awareness and prereading;
             176          (iii) alphabet and word knowledge;
             177          (iv) prewriting;
             178          (v) book knowledge and print awareness;
             179          (vi) numeracy;
             180          (vii) creative arts;
             181          (viii) science and technology; and
             182          (ix) social studies, health, and safety;
             183          (b) ongoing, focused, and intensive professional development for staff of the school
             184      readiness program;
             185          (c) ongoing assessment of a student's educational growth and developmental progress
             186      to inform instruction;
             187          (d) a pre- and post-assessment, selected by the board in accordance with Section
             188      53A-1b-110 , of each student;
             189          (e) for a preschool program run by an eligible LEA, a class size that does not exceed 20
             190      students, with one adult for every 10 students in the class;
             191          (f) ongoing program evaluation and data collection to monitor program goal
             192      achievement and implementation of required program components;
             193          (g) family engagement, including ongoing communication between home and school,
             194      and parent education opportunities based on each family's circumstances;
             195          (h) for a preschool program run by an eligible LEA, each teacher having at least
             196      obtained:
             197          (i) the minimum standard of a child development associate certification; or


             198          (ii) an associate or bachelor's degree in an early childhood education related field; and
             199          (i) for a preschool program run by an eligible private provider, by a teacher's second
             200      year, each teacher having at least obtained:
             201          (i) the minimum standard of a child development associate certification; or
             202          (ii) an associate or bachelor's degree in an early childhood education related field.
             203          (2) A high quality school readiness program run by a home-based educational
             204      technology provider shall:
             205          (a) be an evidence-based and age appropriate individualized interactive instruction
             206      assessment and feedback technology program that teaches eligible students early learning skills
             207      needed to be successful upon entry into kindergarten;
             208          (b) require regular parental engagement with the student in the student's use of the
             209      home-based educational technology program;
             210          (c) be aligned with the Utah early childhood core standards;
             211          (d) require the administration of the pre- and post-assessment, designated by the board
             212      in accordance with Section 53A-1b-110 , of each eligible student; and
             213          (e) require technology providers to ensure successful implementation and utilization of
             214      the technology program.
             215          Section 6. Section 53A-1b-106 is enacted to read:
             216          53A-1b-106. High Quality School Readiness Grant Program.
             217          (1) The High Quality School Readiness Grant Program is created to provide grants to
             218      the following, in order to upgrade an existing preschool or home-based technology program to
             219      a high quality school readiness program:
             220          (a) an eligible private provider;
             221          (b) an eligible LEA; or
             222          (c) an eligible home-based educational technology provider.
             223          (2) The State Board of Education shall:
             224          (a) solicit proposals from eligible LEAs; and
             225          (b) make recommendations to the board to award grants to respondents based on


             226      criteria described in Subsection (5).
             227          (3) The Department of Workforce Services shall:
             228          (a) solicit proposals from eligible private providers and eligible home-based
             229      educational technology providers; and
             230          (b) make recommendations to the board to award grants to respondents based on
             231      criteria described in Subsection (5).
             232          (4) Subject to legislative appropriations, the board shall award grants to respondents
             233      based on:
             234          (a) the recommendations of the State Board of Education;
             235          (b) the recommendations of the Department of Workforce Services; and
             236          (c) the criteria described in Subsection (5).
             237          (5) (a) In awarding a grant under Subsection (4), the State Board of Education,
             238      Department of Workforce Services, and the board shall consider:
             239          (i) a respondent's capacity to effectively implement the components described in
             240      Section 53A-1b-105 ;
             241          (ii) the percentage of a respondent's students who are economically disadvantaged; and
             242          (iii) the level of administrative support and leadership at a respondent's program to
             243      effectively implement, monitor, and evaluate the program.
             244          (b) The board may not award a grant to an LEA without obtaining approval from the
             245      State Board of Education to award the grant to the LEA.
             246          (6) To receive a grant under this section, a respondent that is an eligible LEA shall
             247      submit a proposal to the State Board of Education detailing:
             248          (a) the respondent's strategy to implement the high quality components described in
             249      Subsection 53A-1b-105 (1);
             250          (b) the number of students the respondent plans to serve, categorized by age and
             251      economically disadvantaged status;
             252          (c) the number of high quality preschool classrooms the respondent plans to operate;
             253      and


             254          (d) the estimated cost per student.
             255          (7) To receive a grant under this section, a respondent that is an eligible private
             256      provider or an eligible home-based educational technology provider shall submit a proposal to
             257      the Department of Workforce Services detailing:
             258          (a) the respondent's strategy to implement the high quality components described in
             259      Section 53A-1b-105 ;
             260          (b) the number of students the respondent plans to serve, categorized by age and
             261      economically disadvantaged status;
             262          (c) for a respondent that is an eligible private provider, the number of high quality
             263      preschool classrooms the respondent plans to operate; and
             264          (d) the estimated cost per student.
             265          (8) All recipients of grants under this section shall establish a preschool or home-based
             266      educational technology program with the components described in Section 53A-1b-105 .
             267          (9) (a) A grant recipient shall allow classroom or other visits by an independent
             268      evaluator chosen by the board in accordance with Section 53A-1b-110 .
             269          (b) The independent evaluator shall:
             270          (i) determine whether a grant recipient has effectively implemented the components
             271      described in Section 53A-1b-105 ; and
             272          (ii) report the independent evaluator's findings to the board.
             273          (10) (a) A grant recipient that is an eligible LEA shall assign a statewide unique
             274      student identifier to each eligible student funded pursuant to a grant received under this section.
             275          (b) A grant recipient that is an eligible private provider or an eligible home-based
             276      educational technology provider shall work in conjunction with the State Board of Education to
             277      assign a statewide unique student identifier to each eligible student funded pursuant to a grant
             278      received under this section.
             279          (11) A grant recipient that is an LEA shall report annually to the board and the State
             280      Board of Education the following:
             281          (a) number of students served by the preschool, reported by economically


             282      disadvantaged status;
             283          (b) attendance;
             284          (c) cost per student; and
             285          (d) assessment results.
             286          (12) A grant recipient that is an eligible private provider or an eligible home-based
             287      educational technology provider shall report annually to the board and the Department of
             288      Workforce Services the following:
             289          (a) number of students served by the preschool or program, reported by economically
             290      disadvantaged status;
             291          (b) attendance;
             292          (c) cost per student; and
             293          (d) assessment results.
             294          (13) The State Board of Education and the Department of Workforce Services shall
             295      make rules to effectively administer and monitor the High Quality School Readiness Grant
             296      Program, including:
             297          (a) requiring grant recipients to use the pre- and post-assessment selected by the board
             298      in accordance with Section 53A-1b-110 ; and
             299          (b) establishing reporting requirements for grant recipients.
             300          (14) At the request of the board, the State Board of Education and the Department of
             301      Workforce Services shall annually share the information received from grant recipients
             302      described in Subsections (11) and (12) with the board.
             303          Section 7. Section 53A-1b-107 is enacted to read:
             304          53A-1b-107. High quality preschool programs for eligible LEAs.
             305          (1) To receive funding pursuant to a results-based contract awarded under Section
             306      53A-1b-110 , an eligible LEA shall establish or currently operate a high quality preschool with
             307      the components described in Subsection 53A-1b-105 (1).
             308          (2) An eligible LEA shall assign a statewide unique student identifier to each eligible
             309      student funded pursuant to a results-based contract issued under this part.


             310          (3) An eligible LEA may not use funds awarded pursuant to a results-based contract to
             311      supplant funds for an existing high quality preschool program, but may use the funds to
             312      supplement an existing high quality preschool program.
             313          (4) If permitted under Title 1 of the No Child Left Behind Act of 2001, 20 U.S.C. Sec.
             314      6301-6578, an LEA may charge a sliding scale fee to a student participating in a high quality
             315      preschool program under this section, based on household income.
             316          (5) An LEA that receives funds under this section shall report annually to the board the
             317      de-identified information described in Section 53A-1b-111 .
             318          (6) (a) An eligible LEA may contract with an eligible private provider to provide the
             319      high quality preschool program to a portion of the LEA's eligible students funded by a
             320      results-based contract.
             321          (b) The board shall determine in a results-based contract the portion of an LEA's
             322      eligible students funded by the results-based contract to be served by an eligible private
             323      provider.
             324          (7) To receive funding pursuant to a results-based contract, an eligible private provider
             325      shall:
             326          (a) offer a preschool program that contains the components described in Subsection
             327      53A-1b-105 (1);
             328          (b) allow classroom visits by the evaluator chosen in accordance with Section
             329      53A-1b-110 and the private entity, to ensure the components described in this section are
             330      implemented;
             331          (c) allow the evaluator chosen in accordance with Section 53A-1b-110 to administer
             332      the required pre- and post-assessments to eligible students funded under this part; and
             333          (d) report the information described in Section 53A-1b-111 to the board and the
             334      contracting LEA.
             335          (8) An LEA may provide the eligible private provider with:
             336          (a) professional development;
             337          (b) staffing or staff support;


             338          (c) materials; and
             339          (d) assessments.
             340          (9) (a) If permitted under Title 1 of the No Child Left Behind Act of 2001, 20 U.S.C.
             341      Sec. 6301-6578, an eligible private provider may charge a sliding scale fee to a student
             342      participating in a high quality preschool program under this section, based on household
             343      income.
             344          (b) The eligible private provider may use grants, scholarships, or other funds to help
             345      fund the preschool program.
             346          (10) A contractual partnership established under Subsection (6) shall be consistent with
             347      Utah Constitution, Article X, Section 1.
             348          (11) The evaluator selected pursuant to Section 53A-1b-110 shall annually evaluate:
             349          (a) the quality and outcomes of the high quality preschool program funded by a
             350      results-based contract between a private entity and the board, including:
             351          (i) adherence to required components described in Subsection 53A-1b-105 (1); and
             352          (ii) the pre- and post-assessment results of the assessment, designated by the board
             353      under Section 53A-1b-110 , of eligible students in the high quality preschool program; and
             354          (b) whether the performance outcome measures set in the results-based contract have
             355      been met, using de-identified data reported in Section 53A-1b-111 .
             356          Section 8. Section 53A-1b-108 is enacted to read:
             357          53A-1b-108. High quality preschool programs for eligible private providers.
             358          (1) To receive funding pursuant to a results-based contract awarded under Section
             359      53A-1b-110 , an eligible private provider shall:
             360          (a) establish or currently operate a high quality preschool with the components
             361      described in Subsection 53A-1b-105 (1);
             362          (b) allow classroom visits by the evaluator chosen in accordance with Section
             363      53A-1b-110 and the private entity, to ensure the components described in Subsection
             364      53A-1b-105 (1) are being implemented; and
             365          (c) allow the evaluator chosen in accordance with Section 53A-1b-110 to administer


             366      the required pre- and post-assessments to eligible students funded under this part.
             367          (2) An eligible private provider shall work in conjunction with the State Board of
             368      Education to assign a statewide unique student identifier to each eligible student funded
             369      pursuant to a results-based contract.
             370          (3) An eligible private provider may not use funds awarded pursuant to a results-based
             371      contract to supplant funds for an existing high quality preschool program, but may use the
             372      funds to supplement an existing high quality preschool program.
             373          (4) (a) If permitted under Title 1 of the No Child Left Behind Act of 2001, 20 U.S.C.
             374      Sec. 6301-6578, an eligible private provider may charge a sliding scale fee to a student
             375      participating in a high quality preschool program under this section, based on household
             376      income.
             377          (b) The eligible private provider may use grants, scholarships, or other funds to help
             378      fund the preschool program.
             379          (5) An eligible private provider that receives funds under this section shall report
             380      annually to the board the de-identified information described in Section 53A-1b-111 .
             381          (6) The State Board of Education shall annually share with the board aggregated
             382      longitudinal data on eligible students currently receiving funding under this section and any
             383      eligible students who previously received funding under this section, including:
             384          (a) academic achievement outcomes;
             385          (b) special education use; and
             386          (c) English language learner services.
             387          (7) The evaluator selected pursuant to Section 53A-1b-110 shall annually evaluate:
             388          (a) the quality and outcomes of a high quality preschool program funded by a
             389      results-based contract between a private entity and the board, including:
             390          (i) adherence to required components described in Subsection 53A-1b-105 (1); and
             391          (ii) the pre- and post-assessment results of the assessment, designated by the board
             392      under Section 53A-1b-110 , of eligible students in the high quality preschool program; and
             393          (b) whether the performance outcome measures set in the results-based contract have


             394      been met, using de-identified or aggregated data reported in Subsections (5) and (6).
             395          Section 9. Section 53A-1b-109 is enacted to read:
             396          53A-1b-109. Home-based educational technology for school readiness.
             397          (1) To receive funding pursuant to a results-based contract awarded under Section
             398      53A-1b-110 , an eligible home-based educational technology provider shall administer a
             399      home-based educational technology program designed to prepare eligible students for
             400      kindergarten.
             401          (2) An eligible home-based educational technology provider described in Subsection
             402      (1) shall establish or currently operate a high quality school readiness program with the
             403      components described in Subsection 53A-1b-105 (2).
             404          (3) An eligible home-based educational technology provider shall work in conjunction
             405      with the State Board of Education to assign a statewide unique student identifier to each
             406      eligible student funded pursuant to a results-based contract.
             407          (4) An eligible home-based educational technology provider that receives funds under
             408      this section shall report annually to the board the following de-identified information for
             409      eligible students funded in whole or in part pursuant to a results-based contract:
             410          (a) number of eligible students served by the home-based educational technology
             411      program, reported by economically disadvantaged status and English language learner status;
             412          (b) average time, and range of time usage, an eligible student spent using the program
             413      per week;
             414          (c) cost per eligible student;
             415          (d) assessment results of the pre- and post-assessments selected by the board; and
             416          (e) number of eligible students served by the home-based educational technology
             417      program who participated in any other public or private preschool program, including the type
             418      of preschool attended.
             419          (5) The State Board of Education shall annually share with the board aggregated
             420      longitudinal data on eligible students currently receiving funding under this section and any
             421      eligible students who previously received funding under this section, including:


             422          (a) academic achievement outcomes;
             423          (b) special education use; and
             424          (c) English language learner services.
             425          (6) The evaluator selected pursuant to Section 53A-1b-110 shall annually evaluate:
             426          (a) the quality and outcomes of a home-based educational technology program funded
             427      by a results-based contract between a private entity and the board, including the pre- and
             428      post-assessment results, on the assessment designated by the board under Section 53A-1b-110 ,
             429      of eligible students in the program; and
             430          (b) whether the performance outcome measures set in the results-based contract have
             431      been met, using de-identified or aggregated data reported in Subsections (4) and (5).
             432          Section 10. Section 53A-1b-110 is enacted to read:
             433          53A-1b-110. Results-based school readiness contracts -- Board duties --
             434      Independent evaluator.
             435          (1) (a) The board may negotiate and enter into a results-based contract with a private
             436      entity, selected through a competitive process, to fund:
             437          (i) a high quality preschool program described in Section 53A-1b-107 ;
             438          (ii) a high quality preschool program described in Section 53A-1b-108 ; or
             439          (iii) a home-based education technology program described in Section 53A-1b-109 .
             440          (b) The board may not issue a results-based contract if the total outstanding obligations
             441      of results-based contracts issued by the board under this part would exceed $15,000,000 at any
             442      one time.
             443          (c) The board may provide for a repayment to a private entity to include a return of
             444      investment and an additional return on investment, dependent on achievement of specific
             445      performance outcome measures set in the results-based contract.
             446          (d) The additional return on investment described in Subsection (1)(c) may not exceed
             447      5% above the current Municipal Market Data General Obligation Bond AAA scale for a 10
             448      year maturity at the time of the issuance of the results-based school readiness contract.
             449          (e) Funding obtained for an early education program under this part is not a


             450      procurement item under Section 63G-6a-103 .
             451          (2) A contract shall include:
             452          (a) a requirement that the repayment to the private entity be conditioned on specific
             453      performance outcome measures set in the results-based contract;
             454          (b) a requirement for an independent evaluator to determine whether the performance
             455      outcomes have been achieved;
             456          (c) a provision that repayment to the private entity is:
             457          (i) based upon available money in the School Readiness Restricted Account; and
             458          (ii) subject to legislative appropriation; and
             459          (d) that the private entity is not eligible to receive or view any personally identifiable
             460      student data of students funded through a results-based contract.
             461          (3) The board shall select an independent, nationally recognized early childhood
             462      education evaluator, selected through a request for proposals process, to annually evaluate:
             463          (a) performance outcome measures set in a results-based contract of the board; and
             464          (b) a High Quality School Readiness Grant Program recipient's program.
             465          (4) The board shall select a uniform assessment of age-appropriate cognitive or
             466      language skills that:
             467          (a) is nationally norm-referenced;
             468          (b) has established reliability;
             469          (c) has established validity with other similar measures and with later school outcomes;
             470      and
             471          (d) has strong psychometric characteristics.
             472          (5) (a) At the end of each year of a results-based contract after a student funded through
             473      a results-based contract completes kindergarten, the independent evaluator shall determine
             474      whether the performance outcome measures set in the results-based contract have been met.
             475          (b) If the independent evaluator determines under Subsection (5)(a) that the
             476      performance outcome measures have been met, the board may pay the private entity according
             477      to the terms of the results-based contract.


             478          (6) (a) The board shall ensure that a parent or guardian of an eligible student
             479      participating in a program funded pursuant to a results-based contract has given permission and
             480      signed an acknowledgment that the student's data may be shared with an independent evaluator
             481      for research and evaluation purposes.
             482          (b) The board shall maintain documentation of parental permission required in
             483      Subsection (6)(a).
             484          Section 11. Section 53A-1b-111 is enacted to read:
             485          53A-1b-111. Reporting requirements for recipients of a results-based school
             486      readiness contract -- Reporting requirements for the School Readiness Board.
             487          (1) An eligible LEA, eligible private provider, or eligible home-based educational
             488      technology provider that receives funds pursuant to a results-based contract under this part
             489      shall report annually to the board the following de-identified information for eligible students
             490      funded in whole or in part pursuant to a results-based contract:
             491          (a) number of eligible students served by the recipient's preschool or home-based
             492      educational technology program, reported by economically disadvantaged status and English
             493      language learner status;
             494          (b) attendance;
             495          (c) cost per eligible student;
             496          (d) assessment results of the pre- and post-assessments selected by the board; and
             497          (e) aggregated longitudinal data on eligible students currently receiving funding under
             498      this part and any eligible students who previously received funding under this part, including:
             499          (i) academic achievement outcomes;
             500          (ii) special education use; and
             501          (iii) English language learner services.
             502          (2) For each year of a results-based contract, the board shall report to the Education
             503      Interim Committee the following:
             504          (a) information collected under Subsection (1) for each participating LEA, private
             505      provider, and home-based educational technology provider; and


             506          (b) the terms of the results-based contract, including:
             507          (i) the name of each private entity and funding source;
             508          (ii) the amount of money each private entity has invested;
             509          (iii) the performance outcome measures set in the results-based contract by which
             510      repayment will be determined; and
             511          (iv) the repayment schedule to the private entity if the performance outcomes are met.
             512          Section 12. Section 63J-1-602.3 is amended to read:
             513           63J-1-602.3. List of nonlapsing funds and accounts -- Title 46 through Title 60.
             514          (1) Funding for the Search and Rescue Financial Assistance Program, as provided in
             515      Section 53-2a-1101 .
             516          (2) Appropriations made to the Division of Emergency Management from the State
             517      Disaster Recovery Restricted Account, as provided in Section 53-2a-603 .
             518          (3) Appropriations made to the Department of Public Safety from the Department of
             519      Public Safety Restricted Account, as provided in Section 53-3-106 .
             520          (4) Appropriations to the Motorcycle Rider Education Program, as provided in Section
             521      53-3-905 .
             522          (5) Appropriations from the Utah Highway Patrol Aero Bureau Restricted Account
             523      created in Section 53-8-303 .
             524          (6) Appropriations from the DNA Specimen Restricted Account created in Section
             525      53-10-407 .
             526          (7) The Canine Body Armor Restricted Account created in Section 53-16-201 .
             527          (8) The School Readiness Restricted Account created in Section 53A-1b-104.
             528          [(8)] (9) Appropriations to the State Board of Education, as provided in Section
             529      53A-17a-105 .
             530          [(9)] (10) Money received by the State Office of Rehabilitation for the sale of certain
             531      products or services, as provided in Section 53A-24-105 .
             532          [(10)] (11) Certain funds appropriated from the General Fund to the State Board of
             533      Regents for teacher preparation programs, as provided in Section 53B-6-104 .


             534          [(11)] (12) A certain portion of money collected for administrative costs under the
             535      School Institutional Trust Lands Management Act, as provided under Section 53C-3-202 .
             536          [(12)] (13) Certain surcharges on residential and business telephone numbers imposed
             537      by the Public Service Commission, as provided in Section 54-8b-10 .
             538          [(13)] (14) Certain fines collected by the Division of Occupational and Professional
             539      Licensing for violation of unlawful or unprofessional conduct that are used for education and
             540      enforcement purposes, as provided in Section 58-17b-505 .
             541          [(14)] (15) Certain fines collected by the Division of Occupational and Professional
             542      Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
             543      provided in Section 58-63-103 .
             544          [(15)] (16) Appropriations from the Relative Value Study Restricted Account created
             545      in Section 59-9-105 .
             546          [(16)] (17) The Cigarette Tax Restricted Account created in Section 59-14-204 .
             547          Section 13. Appropriation.
             548          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
             549      the fiscal year beginning July 1, 2014, and ending June 30, 2015, the following sums of money
             550      are appropriated from resources not otherwise appropriated, or reduced from amounts
             551      previously appropriated, out of the funds or accounts indicated. These sums of money are in
             552      addition to any amounts previously appropriated for fiscal year 2015.
             553          (1) Operating and Capital Budgets. Under the terms and conditions of Title 63J, the
             554      Legislature appropriates the following sums of money from the funds or fund accounts
             555      indicated for the use and support of the government of the State of Utah.
             556          To Governor's Office - Governor's Office of Management and Budget
             557              From General Fund Restricted - School Readiness
             558              Restricted Account
$3,000,000

             559              Schedule of Programs:
             560                  Administration                    $200,000
             561                  School Readiness Initiative             $2,800,000


             562          (2) Restricted Fund and Account Transfers. The Legislature authorizes the State
             563      Division of Finance to transfer the following amounts among the following funds or accounts
             564      as indicated. Expenditures and outlays from the recipient funds must be authorized elsewhere
             565      in an appropriations act.
             566          To General Fund Restricted - School Readiness Restricted Account
             567              From General Fund
$3,000,000

             568              Schedule of Programs:
             569                  General Fund Restricted - School Readiness
             570                  Restricted Account                $3,000,000
             571          Section 14. Effective date.
             572          (1) Except as provided in Subsection (2), this bill takes effect on May 13, 2014.
             573          (2) Uncodified Section 13, Appropriation, takes effect on July 1, 2014.


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