Second Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 06-0321.01 Julie Pelegrin HOUSE BILL 06-1008 HOUSE SPONSORSHIP Massey, SENATE SPONSORSHIP (None), House Committees Senate Committees Education A BILL FOR AN ACT Concerning reimbursement for supplemental on-line education courses. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Allows each school district that enrolls fewer than 3,000 students ("eligible school district") and each charter school that is not an on-line program ("eligible charter school") to receive reimbursement for supplemental on-line education courses ("course") purchased for students enrolled in grades 6 through 12. Caps each eligible school district's and eligible charter school's total reimbursement for a budget year at $10 multiplied by the number of students enrolled in grades 6 through 12 in the eligible school district or eligible charter school. Specifies that, for an eligible school district or eligible charter school to receive reimbursement for a course, the course must be provided by an entity that uses Colorado-licensed teachers. Establishes the procedure for an eligible school district or eligible charter school to be reimbursed by the department of education ("department"). Limits the amount of reimbursement for each course to the per-student cost of the course multiplied by the number of students who successfully complete the course. Creates the supplemental on-line education course fund ("fund"), consisting of moneys appropriated from the state education fund. Directs the department to pay reimbursements from the fund. Instructs the department to provide annually to the joint budget committee estimates of the number of students expected to be enrolled in grades 6 through 12 in the eligible school districts and eligible charter schools. Allows the department to retain up to 3% of the amount appropriated to the fund to offset administrative costs. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Title 22, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW ARTICLE to read: ARTICLE 57 Supplemental On-line Education Courses - Financing 22-57-101. Legislative declaration. (1) (a) The general assembly finds that: (I) On-line education courses that are supplemental to the education program provided by a school district or a charter school are a valuable resource for all school districts and charter schools, especially smaller school districts and school districts in rural areas, because they allow a school district or charter school to provide a much richer, more varied curriculum of courses for students at all levels of achievement; (II) Supplemental on-line education courses provide tools for school districts and charter schools to use in decreasing the college remediation rates and in helping their students comply with the higher education admission guidelines. (b) It is therefore in the best interests of the state to ensure the availability of affordable supplemental on-line education courses for school districts and charter schools by subsidizing the provision of supplemental on-line education courses. (2) The general assembly further finds and declares that, for purposes of section 17 of article IX of the state constitution, subsidizing the cost of supplemental on-line education courses for school districts and charter schools is an important element of accountable education reform, of providing accountable programs to meet state academic standards, and of expanding technology education and may therefore receive funding from the state education fund created in section 17 (4) of article IX of the state constitution. 22-57-102. Definitions. As used in this article, unless the context otherwise requires: (1) "Department" means the department of education created and existing pursuant to section 24-1-115, C.R.S. (2) "Eligible charter school" means a charter school, authorized by an eligible school district pursuant to part 1 of article 30.5 of this title, or an institute charter school, as defined in section 22-30.5-502 (6), that: (a) Enrolls students in any of grades six through twelve; and (b) Does not operate an on-line program. (3) "Eligible school district" means a school district that enrolls fewer than three thousand students in a budget year, as determined by the school district's pupil enrollment certified to the state board pursuant to section 22-54-112 for the budget year in which the eligible school district claims reimbursement pursuant to this article. (4) "On-line education course" means an education course taught by a teacher, who is licensed pursuant to article 60.5 of this title, and delivered via an internet format to one or more students at a location that is remote from the delivery point. (5) "Provider" means an entity that sells supplemental on-line education courses that are taught by employees of the provider who are teachers, licensed in Colorado pursuant to article 60.5 of this title. A "provider" may include, but need not be limited to, a nonprofit or for-profit entity, a charter school, a school district, or a consortium of school districts. (6) "State board" means the state board of education created and existing pursuant to section 1 of article IX of the state constitution. (7) "Successfully completed" means that a student passed a supplemental on-line education course with a letter grade of "D" or higher in accordance with the standards of the eligible school district or eligible charter school that purchased the supplemental on-line education course. (8) "Supplemental on-line education course" means an on-line education course that is purchased by an eligible school district or eligible charter school from a provider to augment the education courses taught by employees of the eligible school district or eligible charter school who are located on the school site. 22-57-103. Supplemental on-line education programs - cost reimbursement. (1) Each eligible school district and each eligible charter school may receive reimbursement for all or a portion of the costs incurred in purchasing supplemental on-line education courses for students enrolled in grades six through twelve in the eligible school district or eligible charter school. The department shall pay the amount of the reimbursements from moneys appropriated to the supplemental on-line education course fund created pursuant to section 22-57-104. (2) The total amount of reimbursement for supplemental on-line education courses that an eligible school district or eligible charter school may receive pursuant to this article in a single budget year shall not exceed an amount equal to the number of students enrolled in grades six through twelve in the eligible school district or eligible charter school multiplied by ten dollars. The number of students enrolled in grades six through twelve in an eligible school district or eligible charter school shall be based on the eligible school district's or eligible charter school's pupil enrollment certified pursuant to section 22-54-112 to the state board for the budget year during which the eligible school district or eligible charter school claims the reimbursement. (3) (a) To receive reimbursement for a supplemental on-line education course, an eligible school district or eligible charter school shall submit to the department an application for reimbursement that, at a minimum, specifies the supplemental on-line education course purchased by the eligible school district or eligible charter school, the per-student price of the supplemental on-line education course, the number of students who successfully completed the supplemental on-line education course, and the name of the provider from which the supplemental on-line education course was purchased. The department shall pay the amount of the reimbursement specified in paragraph (b) of this subsection (3) to the applying eligible school district or eligible charter school. (b) The amount of reimbursement paid to an eligible school district or eligible charter school for a supplemental on-line education course shall be equal to the lesser of: (I) The per-student purchase price of the supplemental on-line education course multiplied by the number of students who successfully completed the course; or (II) The portion of the eligible school district's or eligible charter school's total amount available for reimbursement, as specified in subsection (2) of this section, that the department has not yet paid to the eligible school district or eligible charter school for the budget year. (4) (a) An eligible school district or eligible charter school may receive reimbursement pursuant to this article only for supplemental on-line education courses that are purchased from providers that are not affiliated with the eligible school district or eligible charter school. (b) Notwithstanding any provision of this section to the contrary, an eligible school district or an eligible charter school may not receive reimbursement pursuant to this article for a portion of the per-student cost of a supplemental on-line education course that purchases postsecondary credit for the student. 22-57-104. Supplemental on-line education course fund - created. (1) There is hereby created in the state treasury the supplemental on-line education course fund, referred to in this section as the "fund", that shall consist of moneys appropriated from the state education fund created in section 17 (4) of article IX of the state constitution to the fund by the general assembly. The moneys in the fund shall be subject to annual appropriation by the general assembly for the direct and indirect costs associated with the implementation of this article. Any moneys in the fund not expended for the purpose of this article may be invested by the state treasurer as provided by law. All interest and income derived from the investment and deposit of moneys in the fund shall be credited to the fund. Any unexpended and unencumbered moneys remaining in the fund at the end of any fiscal year shall revert to the state education fund. (2) Beginning with the budget preparations for the 2007-08 budget year, the department, as part of the annual budget preparation process, shall provide to the joint budget committee, or any successor committee, estimates of the number of students expected to be enrolled in the coming budget year in grades six through twelve in eligible school districts and eligible charter schools. (3) The department may retain up to three percent of the moneys annually appropriated to the fund to offset the actual administrative costs incurred in administering this article. SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.