First Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 15-0501.01 Julie Pelegrin x2700 SENATE BILL 15-201 SENATE SPONSORSHIP Kerr and Hill, HOUSE SPONSORSHIP Young and Wilson, Senate Committees House Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning the delivery of quality on-line education within the public elementary and secondary education system. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Under current law, the division of on-line learning (division) within the department of education (department) must certify a multi-district on-line school before the school can operate. The bill continues the certification of multi-district on-line schools until January 1, 2016. On and after that date, the division will no longer certify the school, but will certify a school district, a group of school districts, a board of cooperative services, or the state charter school institute (authorizer) that chooses to authorize a multi-district on-line school. The bill establishes the areas in which an authorizer must meet specified requirements to be certified. An authorizer must renew the certification every 5 years. If an authorizer is already operating or overseeing a multi-district on-line school as of January 1, 2016, the authorizer can continue operating or overseeing the school, but must obtain a certification by January 1, 2021. The state board of education (state board) must adopt rules concerning the procedures and timelines by which to apply for certification and any additional areas for which an authorizer must meet requirements. The procedures must include an appellate procedure if the division denies an authorizer's application for certification or revokes or does not renew an authorizer's certification. If an authorizer loses its certification, it may continue operating or overseeing the multi-district on-line school for the remainder of the school year in which it loses the certification and for the next school year. The division must facilitate the multi-district on-line school's transition to a new authorizer. Under current law, the department must develop parameters and guidelines for pilot projects in on-line schools to address measures of student achievement, student count processes and competency-based funding models, tiered interventions, and requirements and responsibilities for student success. The bill adds projects to address the needs of specific student groups in on-line schools. The general assembly is directed to appropriate moneys for the pilot projects, in addition to any gifts, grants, or donations the department may receive. Under current law, a multi-district on-line school that operates a learning center in a school district that is not the school's authorizing school district must enter into a memorandum of understanding with the school district to operate the learning center. The bill requires a multi-district on-line school to also enter into a memorandum of understanding with a school district that is not the school's authorizer if the school seeks to operate a drop-in center within the school district. The bill requires the division to: Study the issue of student mobility into and out of on-line schools and report to the state board and the general assembly; and Collect data concerning the operations of authorizers and multi-district on-line schools, identify and disseminate information concerning best practices, and make the data available for research in the field of on-line education. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 22-30.7-102, amend (2); and add (2.5), (3.5), and (15.5) as follows: 22-30.7-102. Definitions. As used in this article, unless the context otherwise requires: (2) "Authorizer" means an entity that authorizes an on-line program or on-line school. "Authorizer" shall include includes a school district, any a group of two or more school districts, a board of cooperative services, created pursuant to section 22-5-104, or the state charter school institute. established pursuant to section 22-30.5-503. (2.5) "Board of cooperative services" means a board of cooperative services created pursuant to article 5 of this title. (3.5) "Drop-in center" means a facility in which a student who is enrolled in an on-line school may meet periodically and informally with a teacher or mentor, or meet with other students under the supervision of a teacher or mentor, for educational assistance in participating in an on-line school. A private home is not a "drop-in center" under any circumstances. (15.5) "State charter school institute" means the state charter school institute established in section 22-30.5-503. SECTION 2. In Colorado Revised Statutes, 22-30.7-103, amend (2), (3) introductory portion, (3) (b), and (3) (d); and add (3) (b.5), (3) (k.5), (3) (n), and (3) (o) as follows: 22-30.7-103. Division of on-line learning - created - duties - repeal. (2) Purposes. The purposes of the on-line division are: (a) To support on-line programs and on-line schools, students, parents, authorizers, and other entities related to on-line learning by providing information and access to available data; and (b) (I) To facilitate the certification of multi-district on-line schools in accordance with rules promulgated by the state board pursuant to section 22-30.7-106. (II) This paragraph (b) is repealed, effective January 1, 2016. (c) On and after January 1, 2016, to facilitate the certification of authorizers of multi-district on-line schools in accordance with section 22-30.7-106.5. (3) Duties. The on-line division shall have has the following duties: (b) (I) To evaluate applications for certification of multi-district on-line schools using criteria adopted by rules promulgated by the state board pursuant to section 22-30.7-106 and to recommend that the state board grant or deny certification based upon the criteria; (II) This paragraph (b) is repealed, effective January 1, 2016. (b.5) To evaluate applications for certification of the authorizers of multi-district on-line schools based on the standards specified in section 22-30.7-106.5 and grant or deny certification based on the standards; (d) To recommend to the state board on or before September 1, 2007, a process, timeline, and standard MOU form for use by multi-district on-line schools and school districts in crafting memoranda of understanding pursuant to section 22-30.7-111 regarding the placement of learning centers within the boundaries of a school district, and, on and after September 1, 2015, regarding the placement of drop-in centers within the boundaries of a school district. At a minimum, the standard MOU form shall include the information specified in section 22-30.7-111 (1) (b). (k.5) To use the final report of the on-line task force created in section 22-30.7-112, as it existed before July 1, 2015, which was submitted to the state board and the education committees of the house of representatives and the senate on December 29, 2014, as a basis for recommendations for implementing certification of multi-district on-line school authorizers as required in section 22-30.7-106.5; (n) To study the issue of student mobility into and out of on-line programs and on-line schools and report its findings by December 2016 to the state board and the education committees of the senate and the house of representatives, or any successor committees; and (o) To collect data concerning the authorization and oversight practices of authorizers of multi-district on-line schools and the operations of multi-district on-line schools in order to identify and disseminate to school districts, boards of cooperative services, and the state charter school institute best practices in authorizing and operating multi-district on-line schools. The division shall also make the collected data available for research in the field of on-line learning. SECTION 3. In Colorado Revised Statutes, 22-30.7-105, amend (1) (a) and (1) (b); and add (1) (b.5) as follows: 22-30.7-105. Program criteria - guidelines - quality standards - records - rules - repeal. (1) (a) A school district and the state charter school institute established pursuant to section 22-30.5-503 are hereby authorized to create or oversee single-district on-line programs or single-district on-line schools. (b) (I) A school district, a group of two or more school districts, a board of cooperative services, created pursuant to section 22-5-104, and the state charter school institute established pursuant to section 22-30.5-503 are hereby authorized to create or oversee multi-district on-line schools, subject to the requirement that the authorizer apply to the on-line division for certification of the multi-district on-line school as described in section 22-30.7-106. (II) This paragraph (b) is repealed, effective January 1, 2016. (b.5) (I) Beginning January 1, 2016, a school district, a group of two or more school districts, a board of cooperative services, and the state charter school institute may create or oversee one or more multi-district on-line schools if the division certifies the school district, group of school districts, board of cooperative services, or state charter school institute to authorize multi-district on-line schools as provided in section 22-30.7-106.5. (II) Notwithstanding the provisions of subparagraph (I) of this paragraph (b.5), a school district, a group of school districts, a board of cooperatives services, or the state charter school institute that is operating or overseeing a multi-district on-line school as of January 1, 2016, may continue operating or overseeing the multi-district on-line school so long as the division certifies the school district, group of school districts, board of cooperative services, or state charter school institute as provided in section 22-30.7-106.5 no later than January 1, 2016. SECTION 4. In Colorado Revised Statutes, 22-30.7-106, amend (1); and add (9) as follows: 22-30.7-106. Certification of multi-district on-line schools - criteria - rules - repeal. (1) Before January 1, 2016, if a school district, a group of two or more school districts, a board of cooperative services, created pursuant to section 22-5-104, or the state charter school institute established pursuant to section 22-30.5-503 chooses to authorize a multi-district on-line school, the school district, group of two or more school districts, board of cooperative services, or state charter school institute shall, prior to authorizing the multi-district on-line school, apply to the on-line division for certification of the multi-district on-line school. (9) This section is repealed, effective January 1, 2016. SECTION 5. In Colorado Revised Statutes, add 22-30.7-106.5 as follows: 22-30.7-106.5. Certification authorizers of multi-district on-line schools - standards - rules. (1) (a) On and after January 1, 2016, an authorizer that chooses to authorize a multi-district on-line school must be certified by the division pursuant to this section before authorizing the multi-district on-line school. (b) Notwithstanding any provision of paragraph (a) of this subsection (1) to the contrary: (I) An authorizer that is operating or overseeing a multi-district on-line school as of January 1, 2016, may continue operating or overseeing the multi-district on-line school so long as the division certifies the authorizer, as provided in this section, no later than January 1, 2021; (II) The state board may waive the certification requirement for a school district or board of cooperative services that chooses to authorize a multi-district on-line school if the multi-district on-line school enrolls ten or fewer students who reside outside of the boundaries of the school district or board of cooperative services; (III) An authorizer of a single-district on-line program or on-line school that becomes a multi-district on-line school is not required to be certified pursuant to this section if ten or fewer students from outside the school district in which the single-district on-line program or on-line school is operating enroll in the multi-district on-line school. (2) The state board shall promulgate rules pursuant to the "State Administrative Procedure Act", article 4 of title 24, C.R.S., as necessary to implement this section. (3) The state board, by rule, shall establish the process and timelines by which an authorizer that chooses to authorize a multi-district on-line school must apply for certification. At a minimum, the rules must ensure that: (a) Application forms are available no later than January 2016; (b) An applicant must submit an application to the division no later than August of the year preceding the school year in which the multi-district on-line school begins operating; except that rules shall specify the timeline by which an authorizer that is operating or overseeing a multi-district on-line school as of January 1, 2016, must submit an application; (c) The application process includes the opportunity to immediately reapply if the division denies the first application; and (d) The application process includes a process by which an applicant may appeal to the state board if the division denies a reapplication. (4) The state board, by rule, shall establish the areas for which an authorizer must provide assurances or demonstrations that it meets specified requirements in order to be certified pursuant to this section. The division shall consider the requirements for each of the areas in reviewing applications for certification and granting or denying certification. The state board shall consider the requirements for each of the areas in considering an appeal of the denial of an application. At a minimum, the areas and requirements must include the following: (a) Authorizer commitment and capacity, for which an applicant must provide: (I) Assurances that the authorizer's mission statement includes operation or oversight of a multi-district on-line school and that: (A) The authorizer will hold the multi-district on-line school accountable for its performance and that the authorizer has expertise in implementing and supporting on-line learning; and (B) The authorizer is accountable to the public, including assurances that the authorizer will exercise the proper stewardship of educational resources and is committed to offering quality, sustainable education options for students; (II) Demonstrations that the authorizer has sufficient internal or contracted staffing and expertise to provide proper oversight of the multi-district on-line school, including: (A) A description of and rationale for the responsibilities assigned to the authorizer's staff who will operate or oversee the multi-district on-line school and the staff's qualifications; and (B) A professional development plan for the authorizer's staff who will operate or oversee the multi-district on-line school; (III) Assurances of the authorizer's financial commitment to providing support to and oversight of the multi-district on-line school, including annually reporting the authorizer's expenditures on oversight and support of the multi-district on-line school. A new authorizer must provide assurances of its financial commitment. The authorizer of an existing multi-district on-line school must provide documentation of its expenditures. (IV) Assurances that the authorizer is committed to continuing improvement in its operation or oversight of the multi-district on-line school, including a plan for evaluating the authorizer's practices, which practices are aligned with ensuring the multi-district on-line school meets the quality standards specified in section 22-30.7-105 and in rule, and for creating a plan for improving practices, if necessary. A new authorizer must submit the plan to the division. An authorizer of an existing multi-district on-line school may provide assurances that it is implementing the plan. (b) The authorizer's process for reviewing and approving applications from an entity to operate a multi-district on-line school or the authorizer's plan for directly operating a multi-district on-line school, which must include: (I) For purposes of an application process, definition of the roles and responsibilities of the authorizer and the entity that will operate the multi-district on-line school and evidence of sufficient training and support for the school staff; (II) Establishment of rigorous performance standards for the multi-district on-line school, which must include: (A) Identified sources for evaluating student academic outcomes that are aligned with the state accreditation system described in article 11 of this title and that the authorizer will use as the evidence base for making decisions concerning the multi-district on-line school. The sources may include the results of statewide assessments, student academic growth measures, internal assessments, qualitative reviews, and performance comparisons with other public schools in the state. (B) Identified sources of financial data that the authorizer will use in making decisions concerning the multi-district on-line school, which data are based on professional standards for financial operations and address sustainability; (C) Identified sources of organizational data that the authorizer will use in making decisions concerning the multi-district on-line school, which data address fulfilling legal obligations, fiduciary duties, and sound public stewardship; (D) Descriptions of clear, measurable, and attainable academic, financial, and organizational performance standards and targets that the authorizer will apply in determining the continued operations of the multi-district on-line school, including but not limited to state and federal measures of performance; (E) Descriptions of the performance measures and mechanisms and consequences that are aligned with the performance measures, that the authorizer will use to hold the multi-district on-line school accountable for performance; (III) Application of rigorous decision-making criteria and practices, which must include: (A) Evidence that the authorizer has developed rigorous application or plan evaluation criteria and implements transparent and consistent procedures for making decisions concerning the multi-district on-line school; and (B) Evidence that the authorizer uses performance outcomes as the primary basis for making decisions concerning the multi-district on-line school; and (IV) Use of a timeline for submitting, reviewing, and making decisions concerning applications to operate multi-district on-line schools and a timeline for the continuing oversight processes. For a multi-district on-line school that is a charter school, the timelines described in this subparagraph (IV) must comply with the requirements of parts 1 and 5 of article 30.5 of this title. (c) Continuing oversight, evaluation, and accountability, which must include: (I) A description of the annual outcomes-based review process that the authorizer will use to evaluate the multi-district on-line school. The description must include: (A) A description of the activities included in the review process and how the authorizer will use the activities in making decisions concerning the multi-district on-line school. The activities must include physical or virtual site visits, a review of enrollment trends, a review of specified items of student outcomes data, financial audits, and creation of an annual report. (B) A description of the authorizer's comprehensive review of performance outcome data, which includes review of the authorizer's performance plan and the multi-district on-line school's performance plan, adopted pursuant to sections 22-11-208 and 22-11-210; (C) A demonstration of the authorizer's evidence-based decision-making that holds the multi-district on-line school accountable or the performance expectations that the authorizer defines in policy; (II) Transparent compliance-monitoring procedures and systems; (III) The timeline by which the authorizer will review the multi-district on-line school at least annually and provide feedback; (IV) Assurances that the practices that the authorizer adopts are aligned with national best practice recommendations for contracting with an educational management provider, including requiring the educational management provider to submit: (A) Documentation of educational, organizational, and financial performance records based on the provider's work with existing on-line schools, if possible; (B) A growth plan, a business plan, and the provider's most recent financial audits; and (C) Clear evidence that the provider has the capacity to operate a new school successfully while maintaining quality in operating existing on-line schools, if applicable. (5) A certification granted pursuant to this section is valid for five school years and may be renewed for successive five-year periods. The state board may, by rule, establish an expedited process for renewing a certification so long as an authorizer is required to demonstrate that it meets the requirements specified in subsection (4) of this section to obtain a renewed certification. (6) (a) The division may deny, revoke, or not renew an authorizer's certification to operate or oversee a multi-district on-line school if the division determines that the authorizer does not meet the requirements specified in subsection (4) of this section. An authorizer whose certification is denied, revoked, or not renewed may appeal to the state board for review in accordance with state board rules. The state board shall grant or reinstate the authorizer's certification if it finds that the authorizer substantially meets the requirements specified in subsection (4) of this section. (b) If an authorizer that is operating or overseeing a multi-district on-line school loses its certification, the authorizer may continue to operate or oversee the multi-district on-line school for the remainder of the school year in which the authorizer loses its certification and for the next school year. The division shall facilitate a multi-district on-line school's transition to a new authorizer before the completion of the school year following the school year in which the multi-district on-line school's original authorizer loses its certification. SECTION 6. In Colorado Revised Statutes, amend 22-30.7-109.5 as follows: 22-30.7-109.5. On-line programs and on-line schools - report to authorizer and department - repeal. (1) Each on-line program and on-line school shall annually submit to its authorizer and to the department information, pursuant to state board rules, concerning sound financial and accounting practices and resources. (2) (a) A multi-district on-line school shall notify its authorizer and the department of any intent to amend the program's or school's application for certification, which shall include any intent to expand grade levels served by the program or school, any intent to change education service providers, or other intended changes, as defined by the state board. If the department concludes that the on-line program or on-line school should not be permitted to amend its application for certification, based on the quality standards established by the state board pursuant to section 22-30.7-105, the department shall notify the authorizer and the on-line program or on-line school of its decision within thirty days of receiving the notification from the program or school. The authorizer shall then have thirty days to appeal the department's decision to the state board, pursuant to the state board's administrative policies. (b) This subsection (2) is repealed, effective January 1, 2016. SECTION 7. In Colorado Revised Statutes, amend 22-30.7-111 as follows: 22-30.7-111. Learning centers - drop-in centers - memoranda of understanding - rules - appeal process. (1) (a) A multi-district on-line school that intends to provide instruction to students within one or more learning centers or drop-in centers shall, before providing such instruction, seek to enter into a memorandum of understanding with each school district in which the multi-district on-line school intends to provide instruction within a learning center or a drop-in center. (b) A multi-district on-line school that intends to provide instruction to students within a learning center or drop-in center shall notify the school district in which the proposed learning center or drop-in center is located of the multi-district on-line school's intention in writing at least ninety days before the multi-district on-line school intends to commence providing such instruction. The notice shall must include the standard MOU form that addresses, at a minimum, the following information as it applies to each learning center or drop-in center to be located within the school district: (I) A description of any curricula that will be offered by the multi-district on-line school at the learning center or drop-in center; (II) The proposed location of the learning center or drop-in center; (III) The grade levels to be served at the learning center or drop-in center; (IV) The number of students projected to attend the multi-district on-line school at the learning center or drop-in center; (V) Any building permits or certifications of building safety that may be required by law; (VI) A list of all staff positions at the learning center or drop-in center, including a description of duties for each position; (VII) Measures to ensure compliance with state and federal laws concerning educator licensing and fingerprint-based criminal history record checks; (VIII) The name of and contact information for the multi-district on-line school and the names of and contact information for all learning center or drop-in center administrators; and (IX) The plans for one or more public meetings to be held prior to the opening of a learning center or drop-in center. (c) Within forty-five days after receiving the notice and standard MOU form from a multi-district on-line school pursuant to paragraph (b) of this subsection (1), the school district and the multi-district on-line school shall meet to discuss the terms of the memorandum of understanding, based on the standard MOU form provided with the notice. The school district and the multi-district on-line school may mutually agree to change the information in the standard MOU form provided with the notice or to include information in the memorandum of understanding in addition to that included in the standard MOU form. (d) Within forty-five days after receiving the notice and the standard MOU form pursuant to paragraph (b) of this subsection (1), the school district and the multi-district on-line school shall hold at least one public meeting at which they shall receive public input concerning location of one or more learning centers or drop-in centers within the school district. (e) No later than forty-five days after the school district receives the notice and standard MOU form pursuant to paragraph (b) of this subsection (1), the school district shall notify the multi-district on-line school, the on-line division, and the state board in writing of the school district's decision whether to enter into a memorandum of understanding with the multi-district on-line school for operation of a learning center or drop-in center within the school district. If the school district does not provide notice of its decision within forty-five days, the standard MOU form provided by the multi-district on-line school with the notice shall become effective takes effect on the forty-sixth day following the school district's receipt of the notice and standard MOU form, and the multi-district on-line school may proceed under the terms of the standard MOU form as provided to the school district. (f) A school district may refuse to enter into a memorandum of understanding with a multi-district on-line school for the operation of a learning center or drop-in center within the school district only if: (I) The standard MOU form provided by the multi-district on-line school fails to satisfy the requirements described in paragraph (b) of this subsection (1); or (II) The school district reasonably determines that the multi-district on-line school is contrary to the best interests of the pupils, parents, community, or school district. (g) If a school district refuses to enter into a memorandum of understanding with a multi-district on-line school for operation of a learning center or drop-in center, the multi-district on-line school may appeal the school district's decision to the state board pursuant to the provisions of subsection (6) of this section. (h) Notwithstanding any provision of this section to the contrary, a multi-district on-line school that seeks to operate a learning center or drop-in center within a school district shall not be is not required to enter into a memorandum of understanding with the school district if the school district is the authorizer of the multi-district on-line school. (i) Notwithstanding any provision of this section to the contrary, a school district and a multi-district on-line school may mutually agree in writing to decline to enter into a memorandum of understanding. (j) To ensure that all students have a reasonable opportunity to benefit from on-line education, a school district and a multi-district on-line school shall make good faith efforts to craft and enter into a memorandum of understanding pursuant to the provisions of this section. (2) A memorandum of understanding entered into by a school district and a multi-district on-line school pursuant to the provisions of this section shall be is effective for three years. A school district and a multi-district on-line school may enter into an unlimited number of successive memoranda of understanding. (3) If a school district and a multi-district on-line school enter into a memorandum of understanding pursuant to the provisions of this section, the memorandum of understanding shall must include consideration of all learning centers or drop-in centers that the multi-district on-line school proposes, at the time the memorandum of understanding is crafted, to operate within the school district, and the memorandum of understanding shall supersede supersedes any memorandum of understanding previously entered into by the school district and the multi-district on-line school. (4) (a) If a multi-district on-line school is operating a learning center or drop-in center within a school district under the terms of a memorandum of understanding, and the multi-district on-line school seeks to operate an additional learning center or drop-in center within the school district, which additional learning center or drop-in center is not contemplated in an existing memorandum of understanding, the multi-district on-line school shall provide notice to the school district of the multi-district on-line school's intention to operate an additional learning center or drop-in center. The notice shall must include the standard MOU form. (b) Upon receiving notice from a multi-district on-line school as described in paragraph (a) of this subsection (4), the school district shall decide whether to seek to craft a new memorandum of understanding with the multi-district on-line school, and the school district shall notify the multi-district on-line school of the school district's decision within thirty days after receiving the notice described in paragraph (a) of this subsection (4). (c) (I) If the multi-district on-line school receives notice within thirty days that the school district has decided to seek to craft a new memorandum of understanding, the multi-district on-line school and the school district shall seek to craft a new memorandum of understanding pursuant to the provisions of this section. (II) If the multi-district on-line school does not receive notice within thirty days after the school district's decision, or the multi-district on-line school receives notice that the school district has decided not to seek to craft a new memorandum of understanding, the multi-district on-line school may begin to operate the additional learning center or drop-in center. (5) (a) On or before October 1, 2007, the state board shall approve the standard MOU form, which shall must, at a minimum, include the information specified in paragraph (b) of subsection (1) of this section. The standard MOU form approved by the state board shall must be based on the standard MOU form recommended by the on-line division pursuant to section 22-30.7-103 (3) (d). (b) On or before October 1, 2015, the state board shall approve a revision to the standard MOU form, which must include any provisions necessary to address drop-in centers. The revised standard MOU form must meet the minimum requirements specified in paragraph (a) of this subsection (5). (6) (a) On or before January 1, 2008, the state board shall promulgate rules establishing procedures and timelines by which a multi-district on-line school may appeal to the state board a decision by a school district to refuse to enter into a memorandum of understanding with the multi-district on-line school for the operation of a learning center or drop-in center within the school district. (b) If the state board determines that a school district's decision to refuse to enter into a memorandum of understanding was contrary to the best interests of the pupils, parents, community, or school district, the state board shall must issue an order directing the school district to enter into a final memorandum of understanding with the multi-district on-line school regarding the placement of one or more learning centers or drop-in centers within the school district and to use the standard MOU form provided with the notice pursuant to paragraph (b) of subsection (1) of this section as the basis for the final memorandum of understanding. (c) Upon receiving notice from a multi-district on-line school that the multi-district on-line school is appealing a decision by a school district to refuse to enter into a memorandum of understanding with the multi-district on-line school, the state board shall resolve the dispute within forty-five days by either affirming the school district's decision or issuing an order directing the school district to enter into a memorandum of understanding with the multi-district on-line school, as described in paragraph (b) of this subsection (6). (7) (a) Notwithstanding any provision of this section to the contrary, a multi-district on-line school that operates one or more learning centers within a school district as of January 1, 2007, may continue to operate learning centers within the school district until August 1, 2008, without entering into a memorandum of understanding with the school district. A multi-district on-line school that operates one or more learning centers within a school district as of January 1, 2007, shall provide notification to the school district on or before September 1, 2007, of any learning centers being operated by the multi-district on-line school within the school district. The notice shall must include the information described in subparagraphs (I) through (VIII) of paragraph (b) of subsection (1) of this section. (b) Notwithstanding any provision of this section to the contrary, a multi-district on-line school that operates one or more drop-in centers within a school district as of September 1, 2015, may continue to operate the drop-in centers within the school district until July 1, 2016, without entering into a memorandum of understanding with the school district. A multi-district on-line school that operates one or more drop-in centers within a school district as of September 1, 2015, shall provide notice to the school district on or before September 1, 2015, of the drop-in centers that the multi-district on-line school operates within the school district. The notice must include the information described in subparagraphs (I) to (VIII) of paragraph (b) of subsection (1) of this section. SECTION 8. In Colorado Revised Statutes, 22-30.7-113, amend (2) (a), (2) (b), and (4) as follows: 22-30.7-113. On-line pilot programs - interim reports - legislative declaration. (2) (a) The department shall work with the task force created in section 22-30.7-112 to establish the parameters for, duration of, and methods for evaluating pilot programs as described in this section and to issue to authorizers requests for proposals for the pilot programs. The department shall issue the requests for proposals no later than October 15, 2014 October 15, 2015. The pilot programs must begin operation no later than the 2015-16 school year 2016-17 school year. (b) The pilot programs may include, but need not be limited to: (I) A pilot program to use objective, verifiable, and multiple measures of student achievement as indicators of school quality, which measures align with the Colorado academic standards adopted pursuant to section 22-7-1005; (II) A pilot program to develop and assess services that are appropriate for all students, including children with disabilities, children who are identified as gifted and talented, English language learners, and students who are identified as being at risk of academic failure; (II) (III) A pilot program to use a student-count process that is based on course completion and student competency rather than enrollment; (III) (IV) A pilot program to examine methods of using tiered interventions in on-line education to support individual students through a well-integrated system that is matched to students' academic, social-emotional, and behavioral needs; and (IV) (V) A pilot program to identify and explain the requirements students must meet and the responsibilities that students must accept to succeed in on-line education. (4) The general assembly shall appropriate moneys to the department to offset the costs incurred by the department and by participating authorizers in implementing pilot programs as provided in this section. In addition, the department may accept and expend public and private gifts, grants, and donations to offset the costs incurred by the department and by participating authorizers in implementing pilot programs pursuant to this section. Notwithstanding any provision of this section to the contrary, the department must implement the provisions of this section only if the department receives appropriations or public or private gifts, grants, or donations in an amount it deems sufficient to offset the costs incurred in implementing pilot programs pursuant to this section. SECTION 9. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 5, 2015, if adjournment sine die is on May 6, 2015); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.