1     
UTAH SCHOOL READINESS INITIATIVE AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Bradley G. Last

5     
Senate Sponsor: Ann Millner

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to the School Readiness Initiative.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     moves the School Readiness Board (board) from the Governor's Office of
14     Management and Budget to the Department of Workforce Services;
15          ▸     requires the State Board of Education to develop a school readiness program entry
16     assessment;
17          ▸     requires certain school readiness programs to administer school readiness program
18     entry and exit assessments;
19          ▸     modifies the membership of the board;
20          ▸     requires the board to award a contract to a nonprofit entity to provide program
21     support for results-based contracts;
22          ▸     enacts a prioritization for funding school readiness programs;
23          ▸     enacts and consolidates provisions related to requirements for recipients of funding
24     through results-based contracts;
25          ▸     permits the board to fund a high quality school readiness program directly, if the
26     high quality school readiness program meets certain requirements;
27          ▸     requires the board to select at least three independent evaluators;
28          ▸     requires the operator of a high quality school readiness program that participates in
29     a results-based contract to select an evaluator to evaluate the high quality school
30     readiness program; and
31          ▸     makes technical and conforming changes.
32     Money Appropriated in this Bill:
33          This bill appropriates in fiscal year 2019:
34          ▸     to Department of Workforce Services -- Operations and Policy as an ongoing
35     appropriation:
36               •     from the General Fund Restricted -- School Readiness Account, $2,935,700;
37          ▸     to Department of Workforce Services -- Operations and Policy as a one-time
38     appropriation:
39               •     from the General Fund Restricted -- School Readiness Account, One-time,
40     $10,276,900;
41          ▸     to State Board of Education -- State Administrative Office as an ongoing
42     appropriation:
43               •     from the General Fund Restricted -- School Readiness Account, $64,300;
44          ▸     to State Board of Education -- State Administrative Office as a one-time
45     appropriation:
46               •     from the General Fund Restricted -- School Readiness Account, One-time,
47     $70,800;
48          ▸     to State Board of Education -- General System Support, as a one-time appropriation:
49               •     from General Fund Restricted -- School Readiness Account, $88,000;
50          ▸     to Governor's Office -- Governor's Office of Management and Budget, as an
51     ongoing appropriation:
52               •     from the General Fund Restricted -- School Readiness Account, ($200,000); and
53          ▸     to Governor's Office -- School Readiness Initiative as an ongoing appropriation:
54               •     from the General Fund Restricted -- School Readiness Account, ($2,800,000).
55     Other Special Clauses:
56          This bill provides a special effective date.
57     Utah Code Sections Affected:
58     AMENDS:
59          53E-9-301, as renumbered and amended by Laws of Utah 2018, Chapter 1
60          53F-6-301, as renumbered and amended by Laws of Utah 2018, Chapter 2
61          53F-6-303, as enacted by Laws of Utah 2018, Chapter 2
62          53F-6-305, as renumbered and amended by Laws of Utah 2018, Chapter 2
63          53F-6-309, as renumbered and amended by Laws of Utah 2018, Chapter 2
64          53F-6-310, as renumbered and amended by Laws of Utah 2018, Chapter 2
65          63J-1-602.2, as last amended by Laws of Utah 2015, Chapters 86, 93, and 189
66          63J-1-602.3, as last amended by Laws of Utah 2017, Chapters 396 and 423
67     RENUMBERS AND AMENDS:
68          35A-3-209, (Renumbered from 53F-6-302, as renumbered and amended by Laws of
69     Utah 2018, Chapter 2)
70          35A-3-210, (Renumbered from 53F-9-402, as renumbered and amended by Laws of
71     Utah 2018, Chapter 2)
72     ENACTS:
73          53E-4-314, Utah Code Annotated 1953
74     REPEALS AND REENACTS:
75          53F-6-306, as renumbered and amended by Laws of Utah 2018, Chapter 2
76     REPEALS:
77          53F-6-307, as renumbered and amended by Laws of Utah 2018, Chapter 2
78          53F-6-308, as renumbered and amended by Laws of Utah 2018, Chapter 2
79     

80     Be it enacted by the Legislature of the state of Utah:
81          Section 1. Section 35A-3-209, which is renumbered from Section 53F-6-302 is
82     renumbered and amended to read:
83          [53F-6-302].      35A-3-209. Establishment of the School Readiness Board --
84     Membership -- Program intermediary -- Funding prioritization.
85          (1) The terms defined in Section 53F-6-301 apply to this section.
86          [(1)] (2) There is created [a] the School Readiness Board within the [Governor's Office
87     of Management and Budget] Department of Workforce Services composed of:
88          (a) the director of the Department of Workforces Services or the director's designee;
89          (b) one member appointed by the State Board of Education;
90          (c) one member appointed by the chair of the State Charter School Board;
91          (d) one member who has research experience in the area of early childhood
92     development, including special education, appointed by the speaker of the House of
93     Representatives; and
94          (e) one member, appointed by the president of the Senate[.], who:
95          (i) has expertise in pay for success programs; or
96          (ii) represents a financial institution that has experience managing a portfolio that
97     meets the requirements of the Community Reinvestment Act, 12 U.S.C. Sec. 2901 et seq.
98          [(2)] (3) (a) A member described in [Subsections (1)] Subsection (2)(c), (d), [and] or
99     (e) shall serve for a term of two years.
100          (b) If a vacancy occurs for a member described in Subsection [(1)] (2)(c), (d), or (e),
101     the person appointing the member shall appoint a replacement to serve the remainder of the
102     member's term.
103          [(3)] (4) A member may not receive compensation or benefits for the member's service.
104          [(4) Upon request, the Governor's Office of Management and Budget shall provide
105     staff support to the board.]
106          (5) The department shall provide staff support to the board.
107          [(5)] (6) (a) The board members shall elect a chair of the board from the board's
108     membership.
109          (b) The board shall meet upon the call of the chair or a majority of the board members.
110          (7) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, and subject to
111     Subsection (8), the board shall:
112          (a) select a program intermediary that:
113          (i) is a nonprofit entity; and
114          (ii) has experience:
115          (A) developing and executing contracts;
116          (B) structuring the terms and conditions of a pay for success program;
117          (C) coordinating the funding and management of a pay for success program; and
118          (D) raising private investment capital necessary to fund program services related to a
119     pay for success program; and
120          (b) enter into a contract with the program intermediary.
121          (8) The board may not enter into a contract described in Subsection (7) without the
122     consent of the department regarding:
123          (a) the program intermediary selected; and
124          (b) the terms of the contract.
125          (9) A contract described in Subsection (7)(b) shall:
126          (a) require the program intermediary to:
127          (i) seek out participants for results-based contracts;
128          (ii) advise the board on results-based contracts; and
129          (iii) make recommendations directly to the board on:
130          (A) when to enter a results-based contract; and
131          (B) the terms of a results-based contract; and
132          (b) include a provision that the program intermediary is not eligible to receive or view
133     personally identifiable student data of eligible students funded under the School Readiness
134     Initiative described in this part and Title 53F, Chapter 6, Part 3, School Readiness Initiative.
135          (10) In allocating funding, the board shall:
136          (a) give first priority to a results-based contract described in Subsection 53F-6-309(3)
137     to fund a high quality school readiness program directly;
138          (b) give second priority to a results-based contract that includes an investor; and
139          (c) give third priority to a grant described in Section 53F-6-305.
140          (11) Other powers and duties of the board are described in Title 53F, Chapter 6, Part 3,
141     School Readiness Initiative.
142          Section 2. Section 35A-3-210, which is renumbered from Section 53F-9-402 is
143     renumbered and amended to read:
144          [53F-9-402].      35A-3-210. School Readiness Restricted Account -- Creation
145     -- Funding -- Distribution of funds.
146          (1) The terms defined in Section 53F-6-301 apply to this section.
147          (2) There is created in the General Fund a restricted account known as the "School
148     Readiness Restricted Account"[ to fund:].
149          [(a) the High Quality School Readiness Grant Program described in Section
150     53F-6-305; and]
151          [(b) results-based school readiness contracts for eligible students to participate in:]
152          [(i) a high quality preschool program described in:]
153          [(A) Section 53F-6-306; or]
154          [(B) Section 53F-6-307; or]
155          [(ii) an eligible home-based educational technology program described in Section
156     53F-6-308.]
157          (3) The [restricted account] School Readiness Restricted Account consists of:
158          (a) money appropriated [to the restricted account] by the Legislature;
159          (b) all income and interest derived from the deposit and investment of money in the
160     account;
161          (c) federal grants; and
162          (d) private donations.
163          (4) Subject to legislative appropriations, money in the restricted account may be used
164     [for the following purposes]:
165          (a) to award [grants] a grant under the High Quality School Readiness Grant Program
166     described in Section 53F-6-305;
167          (b) to contract with [an independent evaluator as required in Subsection 53F-6-309(3)]
168     an evaluator;
169          [(c) in accordance with Section 53F-6-309, to make payments to one or more private
170     entities that the board has entered into a results-based contract with if the independent
171     evaluator selected by the board determines that the performance-based results have been met;
172     and]
173          (c) to fund the participation of eligible students in a high quality school readiness
174     program through a results-based contract; and
175          (d) for administration costs and to monitor the programs described in [this part]
176     Section 35A-3-209 and Title 53F, Chapter 6, Part 3, School Readiness Initiative.
177          Section 3. Section 53E-4-314 is enacted to read:
178          53E-4-314. School readiness assessment.
179          (1) As used in this section:
180          (a) "School readiness assessment" means the preschool entry assessment described in
181     this section.
182          (b) "School readiness program" means a preschool program:
183          (i) in which a student participates in the year before the student is expected to enroll in
184     kindergarten; and
185          (ii) that receives funding under:
186          (A) Title 53F, Chapter 5, Part 3, High Quality School Readiness Program; or
187          (B) Title 53F, Chapter 6, Part 3, School Readiness Initiative.
188          (2) The State Board of Education shall develop a school readiness assessment that
189     aligns with the kindergarten entry and exit assessment described in Section 53F-4-205.
190          (3) A school readiness program shall:
191          (a) except as provided in Subsection (4), administer to each student who participates in
192     the school readiness program:
193          (i) the school readiness assessment at the beginning of the student's participation in the
194     school readiness program; and
195          (ii) the kindergarten entry assessment described in Section 53F-4-205 at the end of the
196     student's participation in the school readiness program; and
197          (b) report the results of the assessments described in Subsection (3)(a) or (4) to:
198          (i) the State Board of Education; and
199          (ii) the Department of Workforce Services.
200          (4) In place of the assessments described in Subsection (3)(a), a school readiness
201     program that is offered through home-based technology may administer to each student who
202     participates in the school readiness program:
203          (a) a validated computer adaptive pre-assessment at the beginning of the student's
204     participation in the school readiness program; and
205          (b) a validated computer adaptive post-assessment at the end of the student's
206     participation in the school readiness program.
207          Section 4. Section 53E-9-301 is amended to read:
208          53E-9-301. Definitions.
209          As used in this part:
210          (1) "Adult student" means a student who:
211          (a) is at least 18 years old;
212          (b) is an emancipated student; or
213          (c) qualifies under the McKinney-Vento Homeless Education Assistance
214     Improvements Act of 2001, 42 U.S.C. Sec. 11431 et seq.
215          (2) "Aggregate data" means data that:
216          (a) are totaled and reported at the group, cohort, school, school district, region, or state
217     level with at least 10 individuals in the level;
218          (b) do not reveal personally identifiable student data; and
219          (c) are collected in accordance with board rule.
220          (3) (a) "Biometric identifier" means a:
221          (i) retina or iris scan;
222          (ii) fingerprint;
223          (iii) human biological sample used for valid scientific testing or screening; or
224          (iv) scan of hand or face geometry.
225          (b) "Biometric identifier" does not include:
226          (i) a writing sample;
227          (ii) a written signature;
228          (iii) a voiceprint;
229          (iv) a photograph;
230          (v) demographic data; or
231          (vi) a physical description, such as height, weight, hair color, or eye color.
232          (4) "Biometric information" means information, regardless of how the information is
233     collected, converted, stored, or shared:
234          (a) based on an individual's biometric identifier; and
235          (b) used to identify the individual.
236          (5) "Board" means the State Board of Education.
237          (6) "Cumulative disciplinary record" means disciplinary student data that is part of a
238     cumulative record.
239          (7) "Cumulative record" means physical or electronic information that the education
240     entity intends:
241          (a) to store in a centralized location for 12 months or more; and
242          (b) for the information to follow the student through the public education system.
243          (8) "Data authorization" means written authorization to collect or share a student's
244     student data, from:
245          (a) the student's parent, if the student is not an adult student; or
246          (b) the student, if the student is an adult student.
247          (9) "Data governance plan" means an education entity's comprehensive plan for
248     managing education data that:
249          (a) incorporates reasonable data industry best practices to maintain and protect student
250     data and other education-related data;
251          (b) provides for necessary technical assistance, training, support, and auditing;
252          (c) describes the process for sharing student data between an education entity and
253     another person;
254          (d) describes the process for an adult student or parent to request that data be
255     expunged; and
256          (e) is published annually and available on the education entity's website.
257          (10) "Education entity" means:
258          (a) the board;
259          (b) a local school board;
260          (c) a charter school governing board;
261          (d) a school district;
262          (e) a charter school;
263          (f) the Utah Schools for the Deaf and the Blind; or
264          (g) for purposes of implementing the School Readiness Initiative described in Title
265     53F, Chapter 6, Part 3, School Readiness Initiative, the School Readiness Board created in
266     Section [53F-6-302] 35A-3-209.
267          (11) "Expunge" means to seal or permanently delete data, as described in board rule
268     made under Section 53E-9-306.
269          (12) "External application" means a general audience:
270          (a) application;
271          (b) piece of software;
272          (c) website; or
273          (d) service.
274          (13) "Individualized education program" or "IEP" means a written statement:
275          (a) for a student with a disability; and
276          (b) that is developed, reviewed, and revised in accordance with the Individuals with
277     Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq.
278          (14) "Internal application" means an Internet website, online service, online
279     application, mobile application, or software, if the Internet website, online service, online
280     application, mobile application, or software is subject to a third-party contractor's contract with
281     an education entity.
282          (15) "Local education agency" or "LEA" means:
283          (a) a school district;
284          (b) a charter school;
285          (c) the Utah Schools for the Deaf and the Blind; or
286          (d) for purposes of implementing the School Readiness Initiative described in Title
287     53F, Chapter 6, Part 3, School Readiness Initiative, the School Readiness Board created in
288     Section [53F-6-302] 35A-3-209.
289          (16) "Metadata dictionary" means a complete list of an education entity's student data
290     elements and other education-related data elements, that:
291          (a) defines and discloses all data collected, used, stored, and shared by the education
292     entity, including:
293          (i) who uses a data element within an education entity and how a data element is used
294     within an education entity;
295          (ii) if a data element is shared externally, who uses the data element externally and how
296     a data element is shared externally;
297          (iii) restrictions on the use of a data element; and
298          (iv) parent and student rights to a data element;
299          (b) designates student data elements as:
300          (i) necessary student data; or
301          (ii) optional student data;
302          (c) designates student data elements as required by state or federal law; and
303          (d) without disclosing student data or security information, is displayed on the
304     education entity's website.
305          (17) "Necessary student data" means data required by state statute or federal law to
306     conduct the regular activities of an education entity, including:
307          (a) name;
308          (b) date of birth;
309          (c) sex;
310          (d) parent contact information;
311          (e) custodial parent information;
312          (f) contact information;
313          (g) a student identification number;
314          (h) local, state, and national assessment results or an exception from taking a local,
315     state, or national assessment;
316          (i) courses taken and completed, credits earned, and other transcript information;
317          (j) course grades and grade point average;
318          (k) grade level and expected graduation date or graduation cohort;
319          (l) degree, diploma, credential attainment, and other school exit information;
320          (m) attendance and mobility;
321          (n) drop-out data;
322          (o) immunization record or an exception from an immunization record;
323          (p) race;
324          (q) ethnicity;
325          (r) tribal affiliation;
326          (s) remediation efforts;
327          (t) an exception from a vision screening required under Section 53G-9-404 or
328     information collected from a vision screening required under Section 53G-9-404;
329          (u) information related to the Utah Registry of Autism and Developmental Disabilities,
330     described in Section 26-7-4;
331          (v) student injury information;
332          (w) a cumulative disciplinary record created and maintained as described in Section
333     53E-9-306;
334          (x) juvenile delinquency records;
335          (y) English language learner status; and
336          (z) child find and special education evaluation data related to initiation of an IEP.
337          (18) (a) "Optional student data" means student data that is not:
338          (i) necessary student data; or
339          (ii) student data that an education entity may not collect under Section 53E-9-305.
340          (b) "Optional student data" includes:
341          (i) information that is:
342          (A) related to an IEP or needed to provide special needs services; and
343          (B) not necessary student data;
344          (ii) biometric information; and
345          (iii) information that is not necessary student data and that is required for a student to
346     participate in a federal or other program.
347          (19) "Parent" means a student's parent or legal guardian.
348          (20) (a) "Personally identifiable student data" means student data that identifies or is
349     used by the holder to identify a student.
350          (b) "Personally identifiable student data" includes:
351          (i) a student's first and last name;
352          (ii) the first and last name of a student's family member;
353          (iii) a student's or a student's family's home or physical address;
354          (iv) a student's email address or other online contact information;
355          (v) a student's telephone number;
356          (vi) a student's social security number;
357          (vii) a student's biometric identifier;
358          (viii) a student's health or disability data;
359          (ix) a student's education entity student identification number;
360          (x) a student's social media user name and password or alias;
361          (xi) if associated with personally identifiable student data, the student's persistent
362     identifier, including:
363          (A) a customer number held in a cookie; or
364          (B) a processor serial number;
365          (xii) a combination of a student's last name or photograph with other information that
366     together permits a person to contact the student online;
367          (xiii) information about a student or a student's family that a person collects online and
368     combines with other personally identifiable student data to identify the student; and
369          (xiv) other information that is linked to a specific student that would allow a
370     reasonable person in the school community, who does not have first-hand knowledge of the
371     student, to identify the student with reasonable certainty.
372          (21) "School official" means an employee or agent of an education entity, if the
373     education entity has authorized the employee or agent to request or receive student data on
374     behalf of the education entity.
375          (22) (a) "Student data" means information about a student at the individual student
376     level.
377          (b) "Student data" does not include aggregate or de-identified data.
378          (23) "Student data disclosure statement" means a student data disclosure statement
379     described in Section 53E-9-305.
380          (24) "Student data manager" means:
381          (a) the state student data officer; or
382          (b) an individual designated as a student data manager by an education entity under
383     Section 53E-9-303.
384          (25) (a) "Targeted advertising" means presenting advertisements to a student where the
385     advertisement is selected based on information obtained or inferred over time from that
386     student's online behavior, usage of applications, or student data.
387          (b) "Targeted advertising" does not include advertising to a student:
388          (i) at an online location based upon that student's current visit to that location; or
389          (ii) in response to that student's request for information or feedback, without retention
390     of that student's online activities or requests over time for the purpose of targeting subsequent
391     ads.
392          (26) "Third-party contractor" means a person who:
393          (a) is not an education entity; and
394          (b) pursuant to a contract with an education entity, collects or receives student data in
395     order to provide a product or service, as described in the contract, if the product or service is
396     not related to school photography, yearbooks, graduation announcements, or a similar product
397     or service.
398          Section 5. Section 53F-6-301 is amended to read:
399          53F-6-301. Definitions.
400          As used in this part:
401          (1) "Board" means the School Readiness Board, created in Section [53F-6-302]
402     35A-3-209.
403          (2) "Economically disadvantaged" means [a student who:] to be eligible to receive free
404     or reduced price lunch.
405          [(a) is eligible to receive free lunch;]
406          [(b) is eligible to receive reduced price lunch; or]
407          [(c) (i) is not otherwise accounted for in Subsection (2)(a) or (b); and]
408          [(ii) (A) is enrolled in a Provision 2 or Provision 3 school, as defined by the United
409     States Department of Agriculture;]
410          [(B) has a Declaration of Household Income on file;]
411          [(C) is eligible for a fee waiver; or]
412          [(D) is enrolled at a school that does not offer a lunch program and is a sibling of a
413     student accounted for in Subsection (2)(a) or (b).]
414          (3) "Eligible home-based educational technology provider" means a provider that
415     intends to offer a home-based educational technology program.
416          (4) "Eligible LEA" means an LEA that has a data system capacity to collect
417     longitudinal academic outcome data, including special education use by student, by identifying
418     each student with a statewide unique student identifier.
419          (5) (a) "Eligible private provider" means a child care program that:
420          (i) (A) except as provided in Subsection (5)(b), is licensed under Title 26, Chapter 39,
421     Utah Child Care Licensing Act; or
422          (B) is exempt from licensure under Section 26-39-403; and
423          (ii) meets other criteria as established by the board, consistent with Utah Constitution,
424     Article X, Section 1.
425          (b) "Eligible private provider" does not include residential child care, as defined in
426     Section 26-39-102.
427          (6) "Eligible student" means a student:
428          (a) who is economically disadvantaged[.]; and
429          (b) whose parent or legal guardian reports that the student has experienced at least one
430     risk factor.
431          (7) "Evaluator" means an independent evaluator selected in accordance with Section
432     53F-3-309.
433          (8) "High quality school readiness program" means a preschool program that:
434          (a) is provided by an eligible LEA, eligible private provider, or eligible home-based
435     educational technology provider; and
436          (b) meets the elements of a high quality school readiness program described in Section
437     53F-6-304.
438          (9) "Investor" means a person that enters into a results-based contract to provide
439     funding to a high quality school readiness program on the condition that the person will receive
440     payment in accordance with Section 53F-6-309 if the high quality school readiness program
441     meets the performance outcome measures included in the results-based contract.
442          [(7)] (10) "Local Education Agency" or "LEA" means a school district or charter
443     school.
444          (11) "Pay for success program" means a program funded through a model in which the
445     program is initially funded through private funding and the entity providing the private funding
446     receives repayment through public funding if the program achieves certain outcomes.
447          [(8)] (12) "Performance outcome measure" means a cost avoidance in special education
448     use for a student at-risk for later special education placement in kindergarten through grade 12
449     who receives preschool education funded pursuant to a results-based [school readiness]
450     contract.
451          [(9) (a) "Private entity" means a private investor or investors that enter into a
452     results-based school readiness contract.]
453          [(b) "Private entity" includes an authorized representative of the private investor or
454     investors.]
455          (13) "Program intermediary" means an entity selected by the board under Section
456     35A-3-209 to coordinate with the Department of Workforce Services to provide program
457     support to the board.
458          [(10)] (14) "Results-based [school readiness] contract" means a contract [entered into
459     by the board, a private entity, and a provider of early childhood education that may result in
460     repayment to a private entity if certain performance outcome measures are achieved.] that:
461          (a) is entered into in accordance with Section 53F-3-309;
462          (b) includes a performance outcome measure; and
463          (c) is between:
464          (i) the board, a provider of a high quality school readiness program, and an investor; or
465          (ii) the board and a provider of a high quality school readiness program.
466          (15) "Risk factor" means:
467          (a) having a mother who was 18 years old or younger when the child was born;
468          (b) a member of a child's household is incarcerated;
469          (c) living in a neighborhood with high violence or crime;
470          (d) having one or both parents with a low reading ability;
471          (e) moving at least once in the past year;
472          (f) having ever been in foster care;
473          (g) living with multiple families in the same household;
474          (h) having exposure in a child's home to:
475          (i) physical abuse or domestic violence;
476          (ii) substance abuse;
477          (iii) the death or chronic illness of a parent or sibling; or
478          (iv) mental illness;
479          (i) the primary language spoken in a child's home is a language other than English; or
480          (j) having at least one parent who has not completed high school.
481          [(11)] (16) "Student at-risk for later special education placement" means [a preschool]
482     an eligible student who, at preschool entry, scores [at or below] at least two standard deviations
483     below the mean on the assessment selected by the board under Section 53F-6-309.
484          Section 6. Section 53F-6-303 is amended to read:
485          53F-6-303. School Readiness Restricted Account.
486          As described in Section [53F-9-402] 35A-3-210, the School Readiness Restricted
487     Account provides funding for this part.
488          Section 7. Section 53F-6-305 is amended to read:
489          53F-6-305. High Quality School Readiness Grant Program.
490          (1) The High Quality School Readiness Grant Program is created to provide grants to
491     the following, in order to upgrade an existing preschool or home-based educational technology
492     program to a high quality school readiness program:
493          (a) an eligible private provider;
494          (b) an eligible LEA; or
495          (c) an eligible home-based educational technology provider.
496          (2) The State Board of Education shall:
497          (a) solicit proposals from eligible LEAs; and
498          (b) make recommendations to the board to award grants to respondents based on
499     criteria described in Subsection (5).
500          (3) The Department of Workforce Services shall:
501          (a) solicit proposals from eligible private providers and eligible home-based
502     educational technology providers; and
503          (b) make recommendations to the board to award grants to respondents based on
504     criteria described in Subsection (5).
505          (4) Subject to legislative appropriations, and the prioritization described in Section
506     35A-3-209, the board shall award grants to respondents based on:
507          (a) the recommendations of the State Board of Education;
508          (b) the recommendations of the Department of Workforce Services; and
509          (c) the criteria described in Subsection (5).
510          (5) (a) In awarding a grant under Subsection (4), the State Board of Education,
511     Department of Workforce Services, and the board shall consider:
512          (i) a respondent's capacity to effectively implement the components described in
513     Section 53F-6-304;
514          (ii) the percentage of a respondent's students who are [economically disadvantaged]
515     eligible students; and
516          (iii) the level of administrative support and leadership at a respondent's program to
517     effectively implement, monitor, and evaluate the program.
518          (b) The board may not award a grant to an LEA without obtaining approval from the
519     State Board of Education to award the grant to the LEA.
520          (6) To receive a grant under this section, a respondent that is an eligible LEA shall
521     submit a proposal to the State Board of Education detailing:
522          (a) the respondent's strategy to implement the high quality components described in
523     [Subsection 53F-6-304(1)] Section 53F-6-304;
524          (b) the number of students the respondent plans to serve, categorized by age and
525     [economically disadvantaged status] whether the students are eligible students;
526          (c) the number of high quality [preschool] school readiness program classrooms the
527     respondent plans to operate; and
528          (d) the estimated cost per student.
529          (7) To receive a grant under this section, a respondent that is an eligible private
530     provider or an eligible home-based educational technology provider shall submit a proposal to
531     the Department of Workforce Services detailing:
532          (a) the respondent's strategy to implement the high quality components described in
533     Section 53F-6-304;
534          (b) the number of students the respondent plans to serve, categorized by age and
535     [economically disadvantaged status] whether the students are eligible students;
536          (c) for a respondent that is an eligible private provider, the number of high quality
537     [preschool] school readiness program classrooms the respondent plans to operate; and
538          (d) the estimated cost per student.
539          [(8) All recipients of grants]
540          (8) (a) A recipient of a grant under this section shall [establish a preschool or
541     home-based educational technology program with the] use the grant to move the recipient's
542     preschool program toward achieving the components described in Section 53F-6-304.
543          (b) A recipient of a grant under this section may not enter into a results-based contract
544     while the recipient receives the grant.
545          (9) (a) A grant recipient shall allow classroom or other visits by an [independent
546     evaluator chosen by the board in accordance with Section 53F-6-309] evaluator.
547          (b) The [independent] evaluator shall:
548          (i) determine whether a grant recipient has effectively implemented the components
549     described in Section 53F-6-304; and
550          (ii) report the [independent] evaluator's findings to the board.
551          [(10) (a) A grant recipient that is an eligible LEA shall assign a statewide unique
552     student identifier to each eligible student funded pursuant to a grant received under this
553     section.]
554          [(b) A grant recipient that is an eligible private provider or an eligible home-based
555     educational technology provider shall work in conjunction with the State Board of Education to
556     assign a statewide unique student identifier to each eligible student funded pursuant to a grant
557     received under this section.]
558          (10) A recipient of a grant under this section shall ensure that each student who is
559     enrolled in a classroom or who uses a home-based educational technology program supported
560     by the grant has a unique student identifier by:
561          (a) if the recipient is an eligible LEA, assigning a unique student identifier to each
562     student enrolled in the classroom; or
563          (b) if the recipient is an eligible private provider or eligible home-based educational
564     technology provider, working with the State Board of Education to assign a unique student
565     identifier to each student enrolled in the classroom or who uses the home-based educational
566     technology program.
567          (11) A grant recipient that is an LEA shall report annually to the board and the State
568     Board of Education the following:
569          (a) number of students served by the preschool, [reported by economically
570     disadvantaged status] including the number of students who are eligible students;
571          (b) attendance;
572          (c) cost per student; and
573          (d) assessment results.
574          (12) A grant recipient that is an eligible private provider or an eligible home-based
575     educational technology provider shall report annually to the board and the Department of
576     Workforce Services the following:
577          (a) number of students served by the preschool or program, [reported by economically
578     disadvantaged status] including the number of students who are eligible students;
579          (b) attendance;
580          (c) cost per student; and
581          (d) assessment results.
582          (13) The State Board of Education and the Department of Workforce Services shall
583     make rules to effectively administer and monitor the [High Quality School Readiness Grant
584     Program] grant program described in this section, including:
585          (a) requiring grant recipients to use the pre- and post-assessment selected by the board
586     in accordance with Section 53F-6-309; and
587          (b) establishing reporting requirements for grant recipients.
588          (14) At the request of the board, the State Board of Education and the Department of
589     Workforce Services shall annually share the information received from grant recipients
590     described in Subsections (11) and (12) with the board.
591          Section 8. Section 53F-6-306 is repealed and reenacted to read:
592          53F-6-306. Requirements for a school readiness program to receive funding
593     through a results-based contract.
594          (1) As used in this section:
595          (a) "Participating program operator" means an eligible LEA, an eligible private
596     provider, or an eligible home-based educational technology provider, that is a party to a
597     results-based contract.
598          (b) "Program" means a school readiness program funded through a results-based
599     contract.
600          (2) (a) Subject to the requirements of this part, an eligible LEA, an eligible private
601     provider, or an eligible home-based educational technology provider that operates a high
602     quality school readiness program may enter into and receive funding through a results-based
603     contract.
604          (b) An eligible LEA, an eligible private provider, or an eligible home-based
605     educational technology provider may not enter into a results-based contract while receiving a
606     grant under Section 53F-6-305.
607          (3) A participating program operator shall ensure that each student who is enrolled in a
608     classroom, or who uses a home-based educational technology, that is part of a participating
609     program operator's program has a unique student identifier by:
610          (a) if the participating program operator is an eligible LEA, assigning a unique student
611     identifier to each student enrolled in the classroom; or
612          (b) if the participating program operator is an eligible private provider or eligible
613     home-based technology provider, working with the State Board of Education to assign a unique
614     student identifier to each student enrolled in the classroom or who uses the home-based
615     educational technology.
616          (4) A participating program operator may not use funds received through a
617     results-based contract to supplant funds for an existing high quality school readiness program,
618     but may use the funds to supplement an existing high quality school readiness program.
619          (5) (a) If not prohibited by the Elementary and Secondary Education Act of 1965, 20
620     U.S.C. Secs. 6301-6576, a participating program operator may charge a sliding scale fee, based
621     on household income, to a student enrolled in the participating program operator's program.
622          (b) A participating program operator may use grants, scholarships, or other money to
623     help fund the program.
624          (6) A participating program operator shall:
625          (a) select an evaluator to annually evaluate:
626          (i) the results of the pre- and post-assessment described in Section 53F-6-309 for each
627     eligible student funded through a results-based contract;
628          (ii) performance on the performance outcome measure as described in Section
629     53F-6-309; and
630          (iii) for a participating program operator that is a home-based educational technology
631     provider, whether the home-based educational technology is being used with fidelity; and
632          (b) allow classroom visits to ensure the program meets the requirements described in
633     this part by:
634          (i) the evaluator;
635          (ii) the program intermediary;
636          (iii) the investor, if applicable;
637          (iv) the State Board of Education; and
638          (v) the Department of Workforce Services.
639          (7) (a) A participating program operator that is an eligible LEA may contract with an
640     eligible private provider to provide a high quality school readiness program to a portion of the
641     LEA's eligible students if:
642          (i) the results-based contract specifies the number of students to be served by the
643     eligible private provider;
644          (ii) the eligible private provider meets the requirements described in this section for a
645     participating program operator;
646          (iii) the eligible private provider reports the information described in Section
647     53F-6-310 to the board and the contracting eligible LEA; and
648          (iv) the contractual partnership is consistent with Utah Constitution, Article X, Section
649     1.
650          (b) An eligible LEA that contracts with an eligible private provider shall provide
651     supportive services to the eligible private provider, which may include:
652          (i) professional development;
653          (ii) staffing or staff support;
654          (iii) materials; or
655          (iv) assessments.
656          Section 9. Section 53F-6-309 is amended to read:
657          53F-6-309. Results-based contracts -- Assessment selection -- Independent
658     evaluators.
659          [(1) (a) The board may negotiate and enter into a results-based contract with a private
660     entity, selected through a competitive process, to fund:]
661          [(i) a high quality preschool program described in Section 53F-6-306;]
662          [(ii) a high quality preschool program described in Section 53F-6-307; or]
663          [(iii) a home-based education technology program described in Section 53F-6-308.]
664          [(b) The board may not issue a results-based contract if the total outstanding
665     obligations of results-based contracts issued by the board under this part would exceed
666     $15,000,000 at any one time.]
667          (1) The board may enter into a results-based contract to fund participation of eligible
668     students in a high quality school readiness program in accordance with Section 35A-3-209 and
669     this part.
670          (2) (a) Except as provided in Subsection (3), the board shall include an investor as a
671     party to a results-based contract.
672          [(c)] (b) The board may provide for a repayment to [a private entity] an investor to
673     include a return of investment and an additional return on investment, dependent on
674     achievement of [specific] the performance outcome measures set in the results-based contract.
675          [(d)] (c) The additional return on investment described in Subsection [(1)(c)] (2)(b)
676     may not exceed 5% above the current Municipal Market Data General Obligation Bond AAA
677     scale for a 10 year maturity at the time of the issuance of the results-based [school readiness]
678     contract.
679          [(e)] (d) Funding obtained for an early education program [under this part] through a
680     results-based contract that includes an investor is not a procurement item under Section
681     63G-6a-103.
682          [(2)] (e) [A contract] A results-based contract that includes an investor shall include:
683          [(a)] (i) a requirement that the repayment to the [private entity] investor be conditioned
684     on [specific] achieving the performance outcome measures set in the results-based contract;
685          [(b)] (ii) a requirement for an [independent] evaluator to determine whether the
686     performance [outcomes] outcome measures have been achieved;
687          [(c)] (iii) a provision that repayment to the [private entity] investor is:
688          [(i)] (A) based upon available money in the School Readiness Restricted Account
689     described in Section 35A-3-210; and
690          [(ii)] (B) subject to legislative [appropriation] appropriations; and
691          [(d)] (iv) a provision that the [private entity] investor is not eligible to receive or view
692     [any] personally identifiable student data of students funded through [a] the results-based
693     contract.
694          (f) The board may not issue a results-based contract that includes an investor as a party
695     to the contract if the total outstanding obligations of results-based contracts that include an
696     investor as a party to the contract would exceed $15,000,000 at any one time.
697          (3) (a) The board may enter into a results-based contract to directly fund a high quality
698     school readiness program that has at least four years of data for at least one cohort of students
699     showing that the high quality school readiness program has met a performance outcome
700     measure.
701          (b) A results-based contract described in Subsection (3)(a):
702          (i) does not require an investor; and
703          (ii) shall include a provision that:
704          (A) requires that in order to continue receiving funding, the high quality school
705     readiness program continue to meet a performance outcome measure; and
706          (B) provides an improvement time frame during which the high quality school
707     readiness program may continue to receive funding if the high quality school readiness
708     program fails to continue to meet the performance outcome measure.
709          [(3) The board shall select an independent, nationally recognized early childhood
710     education evaluator, selected through a request for proposals process, to annually evaluate:]
711          [(a) performance outcome measures set in a results-based contract of the board; and]
712          [(b) a High Quality School Readiness Grant Program recipient's program.]
713          (4) The board shall select a uniform assessment of age-appropriate cognitive or
714     language skills that:
715          (a) is nationally norm-referenced;
716          (b) has established reliability;
717          (c) has established validity with other similar measures and with later school outcomes;
718     and
719          (d) has strong psychometric characteristics.
720          (5) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the board
721     shall select at least three independent evaluators with experience in:
722          (i) evaluating school readiness programs; and
723          (ii) administering the assessment selected under Subsection (4).
724          (b) An eligible LEA, eligible private provider, or eligible home-based educational
725     technology provider that has a results-based contract shall select one of the evaluators
726     described in Subsection (5)(a) to conduct an evaluation described in Section 53F-6-306.
727          (c) The board shall select one of the evaluators described in Subsection (5)(a) to
728     conduct an evaluation described in Section 53F-6-305.
729          [(5)] (6) (a) At the end of each year of a results-based contract after a student funded
730     through a results-based contract completes kindergarten, the independent evaluator described in
731     Subsection (5)(b) shall determine whether the performance outcome measures set in the
732     results-based contract have been met.
733          [(b) If the independent evaluator determines under Subsection (5)(a) that the
734     performance outcome measures have been met, the board may pay the private entity according
735     to the terms of the results-based contract.]
736          (b) The board may not pay an investor unless the evaluation described in Subsection
737     (6)(a) determines that the performance outcome measures in the results-based contract have
738     been met.
739          [(6)] (7) (a) The board shall ensure that a parent or guardian of an eligible student
740     participating in a program funded [pursuant to] through a results-based contract has given
741     permission and signed an acknowledgment that the student's data may be shared with an
742     independent evaluator for research and evaluation purposes, subject to federal law.
743          (b) The board shall maintain documentation of parental permission required in
744     Subsection [(6)(a)] (7)(a).
745          Section 10. Section 53F-6-310 is amended to read:
746          53F-6-310. Reporting requirements for a recipient of funding through a
747     results-based contract -- Reporting to the Legislature.
748          (1) An eligible LEA, eligible private provider, or eligible home-based educational
749     technology provider that receives funds [pursuant to] through a results-based contract [under
750     this part] shall report annually to the board the following de-identified information for eligible
751     students funded in whole or in part [pursuant to a] through the results-based contract:
752          (a) the number of eligible students served by the [recipient's preschool or home-based
753     educational technology program] high quality school readiness program, reported by
754     economically disadvantaged status [and], English language learner status, and the number of
755     risk factors reported for each eligible student;
756          (b) attendance;
757          (c) cost per eligible student;
758          (d) assessment results of the pre- and post-assessments [selected by the board; and]
759     described in Section 53F-6-309;
760          (e) results of the assessments described in Section 53E-4-314; and
761          (f) for an eligible home-based educational technology provider, the average time, and
762     range of time usage, that an eligible student who does not attend another preschool program
763     spends using the home-based educational technology program per week.
764          [(e)] (2) The State Board of Education shall annually share with the board aggregated
765     longitudinal data on eligible students currently [receiving funding] funded under this part and
766     any eligible students who previously [received funding] funded under this part, including:
767          [(i)] (a) academic achievement outcomes;
768          [(ii)] (b) special education use; [and]
769          [(iii)] (c) English language learner services[.]; and
770          (d) scores on the kindergarten entry and exit assessment described in Section
771     53F-4-205.
772          [(2)] (3) For each year of a results-based contract, the board shall report to the
773     Education Interim Committee [the following] and the Economic Development and Workforce
774     Services Interim Committee:
775          (a) information [collected under] described in Subsection (1) for each participating
776     LEA, private provider, and home-based educational technology provider; [and]
777          (b) the data described in Subsection (2); and
778          [(b)] (c) the terms of [the] each results-based contract, including, as applicable:
779          (i) the name of [each private entity] the investor and funding source;
780          (ii) the amount of money each [private entity] investor has invested;
781          (iii) the performance outcome measures set in the results-based contract by which
782     repayment [will be] is determined; and
783          (iv) the repayment schedule to the [private entity] investor if the performance
784     [outcomes are] outcome measures are met.
785          Section 11. Section 63J-1-602.2 is amended to read:
786          63J-1-602.2. List of nonlapsing funds and accounts -- Title 31 through Title 45.
787          (1) Appropriations from the Technology Development Restricted Account created in
788     Section 31A-3-104.
789          (2) Appropriations from the Criminal Background Check Restricted Account created in
790     Section 31A-3-105.
791          (3) Appropriations from the Captive Insurance Restricted Account created in Section
792     31A-3-304, except to the extent that Section 31A-3-304 makes the money received under that
793     section free revenue.
794          (4) Appropriations from the Title Licensee Enforcement Restricted Account created in
795     Section 31A-23a-415.
796          (5) Appropriations from the Health Insurance Actuarial Review Restricted Account
797     created in Section 31A-30-115.
798          (6) Appropriations from the Insurance Fraud Investigation Restricted Account created
799     in Section 31A-31-108.
800          (7) Appropriations from the Underage Drinking Prevention Media and Education
801     Campaign Restricted Account created in Section 32B-2-306.
802          (8) The School Readiness Restricted Account created in Section 35A-3-210.
803          [(8)] (9) Funding for the General Assistance program administered by the Department
804     of Workforce Services, as provided in Section 35A-3-401.
805          [(9)] (10) The Youth Development Organization Restricted Account created in Section
806     35A-8-1903.
807          [(10)] (11) The Youth Character Organization Restricted Account created in Section
808     35A-8-2003.
809          (12) Money received by the Utah State Office of Rehabilitation for the sale of certain
810     products or services, as provided in Section 35A-13-202.
811          [(11)] (13) Funding for a new program or agency that is designated as nonlapsing under
812     Section 36-24-101.
813          [(12)] (14) Appropriations to the Utah National Guard, created in Title 39, Militia and
814     Armories.
815          [(13)] (15) Appropriations from the Oil and Gas Conservation Account created in
816     Section 40-6-14.5.
817          [(14)] (16) Appropriations from the Electronic Payment Fee Restricted Account
818     created by Section 41-1a-121 to the Motor Vehicle Division.
819          [(15)] (17) Funds available to the Tax Commission under Section 41-1a-1201 for the:
820          (a) purchase and distribution of license plates and decals; and
821          (b) administration and enforcement of motor vehicle registration requirements.
822          [(16)] (18) Appropriations from the Motor Vehicle Enforcement Division Temporary
823     Permit Restricted Account created by Section 41-3-110 to the Tax Commission.
824          Section 12. Section 63J-1-602.3 is amended to read:
825          63J-1-602.3. List of nonlapsing funds and accounts -- Title 46 through Title 60.
826          (1) The Utah Law Enforcement Memorial Support Restricted Account created in
827     Section 53-1-120.
828          (2) Funding for the Search and Rescue Financial Assistance Program, as provided in
829     Section 53-2a-1102.
830          (3) Appropriations made to the Division of Emergency Management from the State
831     Disaster Recovery Restricted Account, as provided in Section 53-2a-603.
832          (4) Appropriations made to the Department of Public Safety from the Department of
833     Public Safety Restricted Account, as provided in Section 53-3-106.
834          (5) Appropriations to the Motorcycle Rider Education Program, as provided in Section
835     53-3-905.
836          (6) Appropriations from the Utah Highway Patrol Aero Bureau Restricted Account
837     created in Section 53-8-303.
838          (7) Appropriations from the DNA Specimen Restricted Account created in Section
839     53-10-407.
840          (8) The Canine Body Armor Restricted Account created in Section 53-16-201.
841          [(9) The School Readiness Restricted Account created in Section 53A-1b-104.]
842          [(10) Appropriations to the State Board of Education, as provided in Section
843     53A-17a-105.]
844          [(11) Money received by the Utah State Office of Rehabilitation for the sale of certain
845     products or services, as provided in Section 35A-13-202.]
846          [(12)] (9) Certain funds appropriated from the General Fund to the State Board of
847     Regents for teacher preparation programs, as provided in Section 53B-6-104.
848          [(13)] (10) Funding for the Medical Education Program administered by the Medical
849     Education Council, as provided in Section 53B-24-202.
850          [(14)] (11) A certain portion of money collected for administrative costs under the
851     School Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
852          (12) Appropriations to the State Board of Education, as provided in Section 53F-2-205.
853          [(15)] (13) Subject to Subsection 54-5-1.5(4)(d), appropriations from the Public Utility
854     Regulatory Restricted Account created in Section 54-5-1.5.
855          [(16)] (14) Certain fines collected by the Division of Occupational and Professional
856     Licensing for violation of unlawful or unprofessional conduct that are used for education and
857     enforcement purposes, as provided in Section 58-17b-505.
858          [(17)] (15) Certain fines collected by the Division of Occupational and Professional
859     Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
860     provided in Section 58-63-103.
861          [(18)] (16) Appropriations from the Relative Value Study Restricted Account created
862     in Section 59-9-105.
863          [(19)] (17) The Cigarette Tax Restricted Account created in Section 59-14-204.
864          Section 13. Repealer.
865          This bill repeals:
866          Section 53F-6-307, High quality preschool programs for eligible private providers.
867          Section 53F-6-308, Home-based educational technology for school readiness.
868          Section 14. Appropriation.
869          The following sums of money are appropriated for the fiscal year beginning July 1,
870     2018, and ending June 30, 2019. These are additions to amounts previously appropriated for
871     fiscal year 2019. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
872     Act, the Legislature appropriates the following sums of money from the funds or accounts
873     indicated for the use and support of the government of the state of Utah.
874     ITEM 1
875          To Department of Workforce Services - Operations and Policy
876               From General Fund Restricted - School Readiness Account
$2,935,700

877               From General Fund Restricted - School Readiness Account,
878                One-time
$7,341,200

879               Schedule of Programs:
880                    Workforce Development               $10,276,900
881     ITEM 2
882          To State Board of Education - State Administrative Office
883               From General Fund Restricted - School Readiness Account
$64,300

884               From General Fund Restricted - School Readiness Account,
885                One-time
$70,800

886               Schedule of Programs:
887                    Data and Statistics                    $14,400
888                    Information Technology               $120,700
889     ITEM 3
890          To State Board of Education - General System Support
891               From General Fund Restricted - School Readiness Account,
892                One-time
$88,000

893               Schedule of Programs:
894                    Teaching and Learning               $88,000
895     ITEM 4
896          To Governor's Office - Governor's Office of Management and Budget
897               From General Fund Restricted - School Readiness Account
($200,000)

898               Schedule of Programs:
899                    School Readiness Initiative               ($200,000)
900     ITEM 5
901          To Governor's Office - School Readiness Initiative
902               From General Fund Restricted - School Readiness Account
($2,800,000)

903               Schedule of Programs:
904                    School Readiness Initiative               ($2,800,000)
905          The Legislature intends that the Division of Finance lapse any un-expended balances
906     remaining in the Governor's Office - School Readiness Initiative line item back to the General
907     Fund Restricted - School Readiness Account at the close of fiscal year 2018.
908          Section 15. Effective date.
909          This bill takes effect on July 1, 2018.