1     
REGULATORY SANDBOX IN EDUCATION

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lincoln Fillmore

5     
House Sponsor: Douglas R. Welton

6     

7     LONG TITLE
8     General Description:
9          This bill permits a school to implement an innovative education program.
10     Highlighted Provisions:
11          This bill:
12          ▸     permits a district school or charter school to:
13               •     create a plan to implement an innovative education program (innovation plan);
14     and
15               •     apply to the State Board of Education (state board) for a waiver of state board
16     rule;
17          ▸     to support an innovative education program, permits a local education agency
18     (LEA) to:
19               •     expend a percentage of state restricted funding under certain circumstances; and
20               •     accept private grants, loans, gifts, endowments, devises, or bequests;
21          ▸     requires a charter school authorizer to amend a charter school's charter agreement
22     to:
23               •     incorporate an approved innovation plan; and
24               •     remove an innovation plan that is no longer in effect;
25          ▸     requires a local school board or charter school authorizer to submit approved
26     innovation plans to the state board;
27          ▸     permits the state board to terminate an innovation plan under certain circumstances;
28          ▸     requires the state board to:

29               •     upon request, report to the Education Interim Committee on the use of state
30     restricted funding an LEA uses to support an innovative education program;
31               •     annually report to the Education Interim Committee on innovation plans; and
32               •     waive certain state board rules;
33          ▸     defines terms; and
34          ▸     makes technical changes.
35     Money Appropriated in this Bill:
36          None
37     Other Special Clauses:
38          None
39     Utah Code Sections Affected:
40     AMENDS:
41          53E-1-201, as last amended by Laws of Utah 2021, Chapters 64, 251, and 351
42          53G-5-303, as last amended by Laws of Utah 2019, Chapter 293
43     ENACTS:
44          53G-7-221, Utah Code Annotated 1953
45          53G-7-222, Utah Code Annotated 1953
46     

47     Be it enacted by the Legislature of the state of Utah:
48          Section 1. Section 53E-1-201 is amended to read:
49          53E-1-201. Reports to and action required of the Education Interim Committee.
50          (1) In accordance with applicable provisions and Section 68-3-14, the following
51     recurring reports are due to the Education Interim Committee:
52          (a) the report described in Section 9-22-109 by the STEM Action Center Board,
53     including the information described in Section 9-22-113 on the status of the computer science
54     initiative and Section 9-22-114 on the Computing Partnerships Grants Program;
55          (b) the prioritized list of data research described in Section 35A-14-302 and the report

56     on research described in Section 35A-14-304 by the Utah Data Research Center;
57          (c) the report described in Section 35A-15-303 by the State Board of Education on
58     preschool programs;
59          (d) the report described in Section 53B-1-402 by the Utah Board of Higher Education
60     on career and technical education issues and addressing workforce needs;
61          (e) the annual report of the Utah Board of Higher Education described in Section
62     53B-1-402;
63          (f) the reports described in Section 53B-28-401 by the Utah Board of Higher Education
64     regarding activities related to campus safety;
65          (g) the State Superintendent's Annual Report by the state board described in Section
66     53E-1-203;
67          (h) the annual report described in Section 53E-2-202 by the state board on the strategic
68     plan to improve student outcomes;
69          (i) the report described in Section 53E-8-204 by the state board on the Utah Schools for
70     the Deaf and the Blind;
71          (j) the report described in Section 53E-10-703 by the Utah Leading through Effective,
72     Actionable, and Dynamic Education director on research and other activities;
73          (k) the report described in Section 53F-2-522 regarding mental health screening
74     programs;
75          [(k)] (l) the report described in Section 53F-4-203 by the state board and the
76     independent evaluator on an evaluation of early interactive reading software;
77          [(l)] (m) the report described in Section 53F-4-407 by the state board on UPSTART;
78          [(m)] (n) the reports described in Sections 53F-5-214 and 53F-5-215 by the state board
79     related to grants for professional learning and grants for an elementary teacher preparation
80     assessment; [and]
81          [(n)] (o) the report described in Section 53F-5-405 by the State Board of Education
82     regarding an evaluation of a partnership that receives a grant to improve educational outcomes

83     for students who are low income[.]; and
84          (p) the report described in Section 53G-7-221 by the State Board of Education
85     regarding innovation plans.
86          (2) In accordance with applicable provisions and Section 68-3-14, the following
87     occasional reports are due to the Education Interim Committee:
88          (a) the report described in Section 35A-15-303 by the School Readiness Board by
89     November 30, 2020, on benchmarks for certain preschool programs;
90          (b) the report described in Section 53B-28-402 by the Utah Board of Higher Education
91     on or before the Education Interim Committee's November 2021 meeting;
92          [(c) the reports described in Section 53E-3-520 by the state board regarding cost
93     centers and implementing activity based costing;]
94          [(d)] (c) if required, the report described in Section 53E-4-309 by the state board
95     explaining the reasons for changing the grade level specification for the administration of
96     specific assessments;
97          [(e)] (d) if required, the report described in Section 53E-5-210 by the state board of an
98     adjustment to the minimum level that demonstrates proficiency for each statewide assessment;
99          [(f)] (e) in 2022 and in 2023, on or before November 30, the report described in
100     Subsection 53E-10-309(7) related to the PRIME pilot program;
101          [(g)] (f) the report described in Section 53E-10-702 by Utah Leading through Effective,
102     Actionable, and Dynamic Education;
103          [(h)] (g) if required, the report described in Section 53F-2-513 by the state board
104     evaluating the effects of salary bonuses on the recruitment and retention of effective teachers in
105     high poverty schools;
106          [(i)] (h) upon request, the report described in Section 53F-5-207 by the state board on
107     the Intergenerational Poverty Intervention Grants Program;
108          [(j)] (i) the report described in Section 53F-5-210 by the state board on the Educational
109     Improvement Opportunities Outside of the Regular School Day Grant Program;

110          (j) upon request, a report described in Section 53G-7-222 by an LEA regarding
111     expenditure of a percentage of state restricted funds to support an innovative education
112     program;
113          (k) the report described in Section 53G-7-503 by the state board regarding fees that
114     LEAs charge during the 2020-2021 school year;
115          (l) the reports described in Section 53G-11-304 by the state board regarding proposed
116     rules and results related to educator exit surveys; and
117          (m) the report described in Section 62A-15-117 by the Division of Substance Abuse
118     and Mental Health, the State Board of Education, and the Department of Health regarding
119     recommendations related to Medicaid reimbursement for school-based health services[; and].
120          [(n) the reports described in Section 63C-19-202 by the Higher Education Strategic
121     Planning Commission.]
122          Section 2. Section 53G-5-303 is amended to read:
123          53G-5-303. Charter agreement -- Content -- Modification.
124          (1) As used in this section[, "satellite]:
125          (2) (a) "Innovation plan" means the same as that term is defined in Section 53G-7-221.
126          (b) "Satellite charter school" means a charter school affiliated with an operating charter
127     school, which has the same charter school governing board and a similar program of
128     instruction, but has a different school number than the affiliated charter.
129          [(2)] (3) A charter agreement:
130          (a) is a contract between the charter school applicant and the charter school authorizer;
131          (b) shall describe the rights and responsibilities of each party; and
132          (c) shall allow for the operation of the applicant's proposed charter school.
133          [(3)] (4) A charter agreement shall include:
134          (a) the name of:
135          (i) the charter school; and
136          (ii) the charter school applicant;

137          (b) the mission statement and purpose of the charter school;
138          (c) the charter school's opening date;
139          (d) the grade levels the charter school will serve;
140          (e) (i) subject to Section 53G-6-504, the maximum number of students a charter school
141     will serve; or
142          (ii) for an operating charter school with satellite charter schools, the maximum number
143     of students of all satellite charter schools collectively served by the operating charter school;
144          (f) a description of the structure of the charter school governing board, including:
145          (i) the number of charter school governing board members;
146          (ii) how members of the charter school governing board are appointed; and
147          (iii) charter school governing board members' terms of office;
148          (g) assurances that:
149          (i) the charter school governing board will comply with:
150          (A) the charter school's bylaws;
151          (B) the charter school's articles of incorporation; and
152          (C) applicable federal law, state law, and state board rules;
153          (ii) the charter school governing board will meet all reporting requirements described
154     in Section 53G-5-404; and
155          (iii) except as provided in Part 6, Charter School Credit Enhancement Program, neither
156     the authorizer nor the state, including an agency of the state, is liable for the debts or financial
157     obligations of the charter school or a person who operates the charter school;
158          (h) which administrative rules the state board will waive for the charter school;
159          (i) minimum financial standards for operating the charter school;
160          (j) minimum standards for student achievement; and
161          (k) signatures of the charter school authorizer and the charter school governing board
162     members.
163          [(4)] (5) (a) Except as provided in Subsection [(4)] (5)(b), a charter agreement may not

164     be modified except by mutual agreement between the charter school authorizer and the charter
165     school governing board.
166          (b) A charter school governing board may modify the charter school's charter
167     agreement without the mutual agreement described in Subsection [(4)] (5)(a) to:
168          (i) include an enrollment preference described in Subsection 53G-6-502(4)(g)[.]; or
169          (ii) only as described in Subsection 53G-7-221(5), include or remove an innovation
170     plan.
171          Section 3. Section 53G-7-221 is enacted to read:
172          53G-7-221. Innovative education program -- Innovation plan -- Waiver from state
173     board rule.
174          (1) As used in this section:
175          (a) "Approved innovation plan" means an innovation plan that a local approving body
176     approves in accordance with this section.
177          (b) "Charter trust land council" means a council established by a charter school
178     governing board under Section 53G-7-1205.
179          (c) "Council" means a charter trust land council or a school community council.
180          (d) "Effective period" means the time period that an approved innovation plan is in
181     effect, beginning on the date on which the local approving body approves the innovation plan
182     and ending:
183          (i) at the end of the time period described in Subsection (2)(e)(ii); or
184          (ii) on the date an innovation school receives written notice that the state board has
185     terminated the innovation plan as described in Subsection (9).
186          (e) "Innovation LEA" means an LEA that includes an innovation school.
187          (f) "Innovation plan" means a plan to implement an innovative education program.
188          (g) "Innovation school" means a public school with an innovation plan that a local
189     approving body approves.
190          (h) "Innovative education program" or "program" means a program of research-based

191     innovations in a public school, including innovations in:
192          (i) school staffing;
193          (ii) curriculum and assessment;
194          (iii) class scheduling;
195          (iv) use of financial or other resources;
196          (v) faculty recruitment;
197          (vi) employment;
198          (vii) employee evaluations; or
199          (viii) compensation.
200          (i) "Local approving body" means:
201          (i) for a school district, the local school board; or
202          (ii) for a charter school, the charter school's authorizer.
203          (j) "Public school" means a district school or charter school.
204          (k) "School community council" means a council established at a school within a
205     school district under Section 53G-7-1202.
206          (l) "Student Achievement Backpack" means the same as that term is defined in Section
207     53E-3-511.
208          (2) (a) A public school may create an innovation plan to implement an innovative
209     education program in any area of education.
210          (b) A public school shall submit an innovation plan to the public school's local
211     approving body.
212          (3) An innovation plan shall include:
213          (a) a statement of the public school's mission and an explanation of how the innovation
214     plan will enhance the school's ability to achieve the school's mission;
215          (b) a description of the innovative education program the public school will
216     implement;
217          (c) a list and description of the research or scientific basis supporting the innovative

218     education program;
219          (d) a list of the public school's programs, policies, or operations that the innovation
220     plan impacts, including:
221          (i) the length of the school day;
222          (ii) student graduation policies;
223          (iii) the public school's assessment plan;
224          (iv) the public school's proposed budget; or
225          (v) the public school's staffing plan;
226          (e) (i) a description of the improvements in academic performance the public school
227     expects the innovation plan to achieve;
228          (ii) the period of time, not less than one year or more than three years, in which the
229     public school will demonstrate the results of the program; and
230          (iii) a description of the method the public school will use to measure outcomes and
231     demonstrate whether the innovation school achieves the improvements described in Subsection
232     (2)(e)(i);
233          (f) an estimate of cost savings or increased efficiencies, if any, the public school
234     expects implementing the innovation plan will achieve;
235          (g) evidence that the following agree to the innovation plan:
236          (i) a majority of administrators employed at the public school;
237          (ii) a majority of teachers employed at the public school; and
238          (iii) a majority of the public school's council;
239          (h) a statement demonstrating the level of support for the innovation plan from other
240     members of the public school community, including:
241          (i) school employees other than teachers;
242          (ii) students;
243          (iii) parents; and
244          (iv) the surrounding community;

245          (i) a request for a waiver of any state board rule required for the public school to
246     implement the innovation plan, if any; and
247          (j) any additional information the local approving body requires.
248          (4) (a) A local approving body shall:
249          (i) review an innovation plan that an innovation school submits under Subsection (2);
250          (ii) approve or reject the innovation plan within 60 days after the day on which the
251     public school submits the innovation plan; and
252          (iii) within 30 days after the day on which the local approving body rejects an
253     innovation plan, provide to the public school an explanation in writing of the basis for the
254     rejection.
255          (b) A local approving body may not approve an innovation plan that would cause a
256     public school to violate:
257          (i) federal law; or
258          (ii) state law, other than a state board rule for which an innovation plan requests a
259     waiver.
260          (c) In approving innovation plans as described in Subsection (4)(a), a local approving
261     body shall give preference to innovations in the following areas:
262          (i) curriculum;
263          (ii) academic standards assessments;
264          (iii) accountability measures, including expanding the use of accountability measures
265     to more accurately present a complete measure of student learning and achievement, including
266     the use of:
267          (A) graduation or exit examinations;
268          (B) end-of-course evaluations;
269          (C) Student Achievement Backpack reviews;
270          (D) national and international accountability measures;
271          (E) measures of the percentage of students who enroll in an institution of higher

272     education after high school graduation; or
273          (F) measures of the percentage of students participating in the concurrent enrollment
274     program described in Section 53F-2-409;
275          (iv) providing services, including:
276          (A) special education services;
277          (B) services related to gifted and talented programs;
278          (C) services for English language learner students; or
279          (D) services for students at risk of academic failure, expulsion, or dropping out;
280          (v) teacher recruitment, training, preparation, or professional learning;
281          (vi) teacher employment;
282          (vii) educator evaluations;
283          (viii) employee compensation, including:
284          (A) performance pay plans;
285          (B) total compensation plans; or
286          (C) retirement or other benefits;
287          (ix) school governance; and
288          (x) plans for college and career readiness.
289          (5) A charter school governing board of an innovation school shall, in accordance with
290     Section 53G-5-303, modify the charter school's charter agreement to:
291          (a) include an approved innovation plan;
292          (b) include amendments to an approved innovation plan that a charter school authorizer
293     approves as described in Subsection (6); and
294          (c) remove an approved innovation plan at the end of the effective period.
295          (6) (a) (i) An innovation school may submit proposed amendments to an approved
296     innovation plan to the innovation school's local approving body.
297          (ii) An innovation school shall include with proposed amendments described
298     Subsection (6)(a)(i), evidence that the following agree to the proposed amendments:

299          (A) a majority of administrators employed at the innovation school;
300          (B) a majority of teachers employed at the innovation school; and
301          (C) a majority of the innovation school's council.
302          (b) A local approving body shall review and may approve or reject proposed
303     amendments that an innovation school submits under Subsection (6)(a).
304          (7) (a) Within 30 days of the date on which the local approving body approves an
305     innovation plan, or approves an amendment to an approved innovation plan, the local
306     approving body shall submit a copy of the approved innovation plan to the state board.
307          (b) The state board shall maintain a copy of an approved innovation plan a local
308     approving body submits under Subsection (7)(a).
309          (c) If an approved innovation plan a local approving body submits to the state board
310     includes a request for waiver of state board rule, the state board shall grant the requested
311     waiver, unless the waiver would:
312          (i) cause the innovation school to be in violation of state or federal law;
313          (ii) threaten the health, safety, or welfare of students in the innovation school; or
314          (iii) waive a rule related to:
315          (A) employee criminal background checks; or
316          (B) accounting principles.
317          (d) An innovation school may apply to the state board for additional or modified
318     waivers of state board rule.
319          (e) For an additional or modified waiver request described in Subsection (7)(d), the
320     state board may grant the waiver in accordance with Subsection (7)(c), if the waiver would
321     enhance any of the following for an innovative education program:
322          (i) educational opportunities;
323          (ii) standards; or
324          (iii) quality.
325          (8) (a) An innovation school shall annually report to the local approving body on the

326     innovation plan's progress in achieving the improvements described in Subsection (3)(e)(i).
327          (b) A local approving body shall annually submit a report described in Subsection
328     (8)(a) to the state board.
329          (c) (i) The state board may terminate an innovation plan in accordance with rules the
330     state board makes under Subsection (9), if the state board determines that the innovation plan
331     does not demonstrate sufficient progress.
332          (ii) The state board shall notify the local approving body and the innovation school in
333     writing of the state board's decision to terminate an innovation plan, within 30 days of the date
334     on which the state board makes the decision.
335          (9) The state board shall:
336          (a) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
337     Rulemaking Act, to establish:
338          (i) requirements for the report described in Subsection (8)(a);
339          (ii) a procedure for a local approving body to submit the report described in Subsection
340     (8)(b); and
341          (iii) criteria the state board will use to:
342          (A) evaluate an innovation plan's progress; and
343          (B) terminate an innovation plan; and
344          (b) annually report to the Education Interim Committee, at or before the Education
345     Interim Committee's November meeting, on:
346          (i) approved innovation plans;
347          (ii) waivers of state board rule granted under Subsection (7);
348          (iii) requested waivers of state board rule that the state board does not grant, including
349     the reason for declining to grant the waiver;
350          (iv) innovation plans terminated under Subsection (8), including the reason for the
351     termination;
352          (v) any statutory provisions that prevent:

353          (A) a local approving body from approving an innovation plan; or
354          (B) the state board from granting a waiver of state board rule; and
355          (vi) recommendations for legislation to address statutory provisions described in
356     Subsection (9)(b)(v).
357          (10) An innovation LEA may accept private grants, loans, gifts, endowments, devises,
358     or bequests which are made to support an innovative education program at an innovation
359     school.
360          Section 4. Section 53G-7-222 is enacted to read:
361          53G-7-222. Budget flexibility for innovation LEAs.
362          (1) As used in this section:
363          (a) "Innovation LEA" means the same as that term is defined in Section 53G-7-221.
364          (b) "Innovation school" means the same as that term is defined in Section 53G-7-221.
365          (c) "Innovative education program" means the same as that term is defined in Section
366     53G-7-221.
367          (2) Notwithstanding any other provision of the Utah Code:
368          (a) an innovation LEA may, in each fiscal year:
369          (i) apply to the state board for approval to expend up to 35% of the LEA's state
370     restricted funding for each formula-based program to support an innovative education program
371     at an innovation school in the innovation LEA; and
372          (ii) except as provided in Subsection (2)(b), transfer fund balances between funds as
373     necessary to expend funds as described in Subsection (2)(a)(i); and
374          (b) an innovation LEA may not transfer funds under Subsection (2)(a) related to:
375          (i) the school LAND Trust Program, established in Section 53G-7-1206; or
376          (ii) a qualified grant program.
377          (3) An innovation LEA that expends funds as described in Subsection (2)(a) shall, in
378     accordance with the requirements that the state board establishes under Subsection (4), report
379     to the state board on how the innovation LEA expends the funds.

380          (4) The state board shall:
381          (a) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
382     Rulemaking Act, to establish:
383          (i) requirements for an innovation LEA to apply for the state board's approval to
384     expend funds as described in Subsection (2);
385          (ii) procedures for an innovation LEA to submit the application described in
386     Subsection (4)(a); and
387          (iii) requirements for the report described in Subsection (3); and
388          (b) upon request of the Education Interim Committee, provide a report described in
389     Subsection (3) to the Education Interim Committee.
390          (5) In addition to the requirements established by the state board under Subsection
391     (4)(a)(i), an innovation LEA shall demonstrate how the innovation LEA has met the
392     requirements of each formula-based program from which the innovation LEA seeks approval to
393     expend funds as described in Subsection (2).
394          (6) (a) Nothing in this section authorizes an innovation LEA to violate:
395          (i) federal law; or
396          (ii) federal restrictions on the LEA's funds.
397          (b) An innovation LEA that takes an action that this section authorizes shall ensure that
398     the innovation LEA continues to meet federal maintenance of effort requirements.