Senator Ann Millner proposes the following substitute bill:


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          This bill provides revisor instructions.
58     Utah Code Sections Affected:
59     AMENDS:
60          53E-9-301, as renumbered and amended by Laws of Utah 2018, Chapter 1
61          53F-6-301, as renumbered and amended by Laws of Utah 2018, Chapter 2
62          53F-6-303, as enacted by Laws of Utah 2018, Chapter 2
63          53F-6-305, as renumbered and amended by Laws of Utah 2018, Chapter 2
64          53F-6-309, as renumbered and amended by Laws of Utah 2018, Chapter 2
65          53F-6-310, as renumbered and amended by Laws of Utah 2018, Chapter 2
66          63J-1-602.2, as last amended by Laws of Utah 2015, Chapters 86, 93, and 189
67          63J-1-602.3, as last amended by Laws of Utah 2017, Chapters 396 and 423
68     RENUMBERS AND AMENDS:
69          35A-3-209, (Renumbered from 53F-6-302, as renumbered and amended by Laws of
70     Utah 2018, Chapter 2)
71          35A-3-210, (Renumbered from 53F-9-402, as renumbered and amended by Laws of
72     Utah 2018, Chapter 2)
73     ENACTS:
74          53E-4-314, Utah Code Annotated 1953
75     REPEALS AND REENACTS:
76          53F-6-306, as renumbered and amended by Laws of Utah 2018, Chapter 2
77     REPEALS:
78          53F-6-307, as renumbered and amended by Laws of Utah 2018, Chapter 2
79          53F-6-308, as renumbered and amended by Laws of Utah 2018, Chapter 2
80     

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

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

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

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

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

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

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

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