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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0489.01 JGG HOUSE BILL 98­1184

STATE OF COLORADO

BY REPRESENTATIVE Udall

EDUCATION

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING THE REDUCTION OF CLASS SIZE IN THE EARLY GRADES BY MEANS OF AN INCENTIVE PAYMENT, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Establishes the "Class Size Reduction Program Act of 1998". Authorizes any school district to apply to the department of education for an incentive payment to implement a class size reduction program in that school district for kindergarten through 3rd grade. Requires an application for such incentive payment to be submitted by a certain date and to identify specific information, including whether each school site and class will implement the program for full regular school days (option one) or for half days (option 2). If operating under option 2, directs that the school district devote that half day primarily to the subjects of reading and mathematics.

Under certain circumstances and subject to available appropriations, permits a school district to have a 2­year authorization to have a teacher­pupil ratio that averages one teacher per 18 students.

Lists the items that a school board applying for an incentive payment for class size reduction shall certify. Excludes students in a program of home­study.

Identifies the priority of classes to be reduced in size, specifying that the lower grades shall take priority over kindergarten and 3rd grade.

States that if a school district receives incentive payments but has not implemented its class size reduction program for all grades and classes, the payment shall be refunded to the state public school fund by the school district.

Directs the state board of education to promulgate rules to implement the act, including but not limited to staff development training, data for the school districts, and enforcement.

Specifies that school districts operating under option one shall receive a per pupil incentive payment to be determined by the state board of education and those operating under option 2 shall receive a lesser per pupil incentive payment to be determined by the state board of education in a lump sum payment. Allows for these amounts to be increased annually based on inflation.

Requires a school district receiving an incentive payment to implement a staff development training program. Identifies what that training program shall address.

Directs the department of education to contract for an independent evaluation of the class size reduction program by March 28, 2004.

Makes an appropriation.


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 85

Class Size Reduction Act

22­85­101.  Short title. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "CLASS SIZE REDUCTION ACT OF 1998".

22­85­102.  Legislative declaration. (1)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT THE EFFECTIVE EARLY EDUCATION OF CHILDREN IS OF UTMOST IMPORTANCE TO THE BEST INTERESTS OF CHILDREN, TO THEIR FUTURE SUCCESS, AND TO THE OVERALL WELL­BEING OF THE CITIZENS OF THE STATE OF COLORADO.

(2)  THE GENERAL ASSEMBLY FURTHER FINDS THAT A CHILD'S SUCCESS IN THE EARLY GRADES IS IMPORTANT FOR LONG­TERM SUCCESS, BECAUSE THE EARLY GRADES CONSTITUTE A CRITICAL PERIOD OF ADJUSTMENT FOR A CHILD. ENTERING SCHOOL CHANGES A CHILD'S SOCIAL ENVIRONMENT AT A TIME WHEN THE CHILD'S CAPABILITIES ARE ALSO CHANGING. THE EXPERIENCES OF THE CHILD DURING THIS CRUCIAL PERIOD OFTEN HAVE LASTING CONSEQUENCES. ACCORDINGLY, THE GENERAL ASSEMBLY RECOGNIZES THE IMPORTANCE OF THESE EARLY SCHOOL YEARS AND THE NEED FOR RICH AND REWARDING EXPERIENCES AT THOSE LEVELS OF EDUCATION.

(3)  TOWARD THAT END, THE GENERAL ASSEMBLY FINDS THAT SMALLER PUPIL­TEACHER RATIOS HAVE EFFECTIVELY CONTRIBUTED TO SUCCESSFUL EARLY CHILDHOOD EDUCATIONAL EXPERIENCES AND POSITIVE LONG­TERM ACADEMIC ACHIEVEMENT RESULTS. THE GENERAL ASSEMBLY SPECIFICALLY FINDS THAT STUDIES OF CLASS­SIZE REDUCTION PROGRAMS IMPLEMENTED IN OTHER STATES HAVE CONCLUDED THAT PUPILS IN SMALL PRIMARY GRADE CLASSES HAVE AN ADVANTAGE OVER PUPILS IN LARGER PRIMARY GRADE CLASSES IN THE SUBJECT MATTER AREAS OF READING AND MATHEMATICS. THE GENERAL ASSEMBLY FURTHER FINDS THAT FOLLOW­UP STUDIES OF PUPILS WHO PARTICIPATED IN CLASS­SIZE REDUCTION PROGRAMS IN THEIR EARLY EDUCATION YEARS INDICATE THAT THOSE PUPILS WHO ATTENDED SMALL CLASSES CONTINUED TO OUTPERFORM THEIR PEERS WHO HAD BEEN IN REGULAR SIZED CLASSES IN STANDARDIZED ACHIEVEMENT TESTS TAKEN BY THE PUPILS IN LATER YEARS.

(4)  THE GENERAL ASSEMBLY FINDS THAT THE AVERAGE RATIO OF THE NUMBER OF PUPILS TO THE NUMBER OF FULL­TIME EQUIVALENCY EDUCATORS IN THE STATE OF COLORADO IS APPROXIMATELY TWENTY­FOUR AND ONE­HALF TO ONE. THE GENERAL ASSEMBLY FURTHER FINDS THAT A RATIO SUBSTANTIALLY SMALLER THAN THAT COULD ASSIST GRADE SCHOOL EDUCATORS IN PROVIDING SIGNIFICANTLY MORE PERSONAL ATTENTION TO EACH YOUNG PUPIL THAT MAY, IN THE FUTURE, HAVE LONG­LASTING POSITIVE RESULTS.

(5)  ACCORDINGLY, THE GENERAL ASSEMBLY HEREBY DETERMINES THAT IT IS APPROPRIATE AND BENEFICIAL TO THE CITIZENS OF THE STATE OF COLORADO TO IMPLEMENT A CLASS­SIZE REDUCTION INCENTIVE PROGRAM THAT WOULD ENCOURAGE SCHOOL DISTRICTS TO OFFER SMALLER CLASS SIZES IN THE EARLY GRADES OF SCHOOL.

22­85­103.  Definitions. (1)  AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a)  "DEPARTMENT" MEANS THE DEPARTMENT OF EDUCATION CREATED AND EXISTING PURSUANT TO SECTION 24­1­115, C.R.S.

(b)  "FULL REGULAR SCHOOL DAY" MEANS A SUBSTANTIAL MAJORITY OF THE INSTRUCTIONAL MINUTES PER SCHOOL DAY. "FULL REGULAR SCHOOL DAY" MAY INCLUDE LIMITED PERIODS OF TIME DURING WHICH PUPILS ARE BROUGHT TOGETHER FOR EDUCATIONAL PURPOSES IN GROUPS THAT ARE LARGER THAN EIGHTEEN PUPILS PER TEACHER. IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THOSE LIMITED PERIODS OF TIME BE KEPT TO A MINIMUM AND THAT INSTRUCTION IN READING AND MATHEMATICS NOT BE DELIVERED DURING THOSE LIMITED PERIODS OF TIME.

(c)  "STATE BOARD" MEANS THE STATE BOARD OF EDUCATION CREATED AND EXISTING PURSUANT TO SECTION 1 OF ARTICLE IX OF THE STATE CONSTITUTION.

(d)  "TEACHER" MEANS A PERSON WHO IS LICENSED PURSUANT TO ARTICLE 60.5 OF THIS TITLE, CERTIFICATED PURSUANT TO ARTICLE 60 OF THIS TITLE, OR AUTHORIZED BY A LETTER OF AUTHORIZATION ISSUED PURSUANT TO SECTION 22­60.5­111 TO TEACH.

22­85­104.  Class size reduction programs. (1)  SUBJECT TO THE PROVISIONS OF SECTION 22­85­107, ANY SCHOOL DISTRICT MAY APPLY TO THE DEPARTMENT FOR AN INCENTIVE PAYMENT TO IMPLEMENT A CLASS SIZE REDUCTION PROGRAM IN THAT SCHOOL DISTRICT IN KINDERGARTEN THROUGH THIRD GRADES, INCLUSIVE.

(2)  AN APPLICATION SUBMITTED PURSUANT TO THIS ARTICLE SHALL IDENTIFY:

(a)  EACH SCHOOL SITE AND CLASS IN THE SCHOOL DISTRICT THAT WILL PARTICIPATE IN THE CLASS SIZE REDUCTION PROGRAM; AND

(b)  FOR EACH CLASS THAT WILL PARTICIPATE IN THE CLASS SIZE REDUCTION PROGRAM IN THAT SCHOOL DISTRICT, UNDER WHICH OF THE FOLLOWING TWO OPTIONS THAT CLASS WILL OPERATE:

(I)  OPTION ONE: THE SCHOOL DISTRICT SHALL PROVIDE A REDUCED CLASS SIZE FOR ALL PUPILS IN EACH CLASSROOM FOR THE FULL REGULAR SCHOOL DAY IN EACH GRADE LEVEL FOR WHICH INCENTIVE PAYMENTS ARE CLAIMED; OR

(II)  OPTION TWO: A SCHOOL DISTRICT SHALL PROVIDE A REDUCED CLASS SIZE FOR ALL PUPILS IN EACH CLASSROOM FOR AT LEAST ONE­HALF OF THE FULL REGULAR SCHOOL DAY IN EACH GRADE LEVEL FOR WHICH INCENTIVE PAYMENTS ARE CLAIMED.

(3)  SCHOOL DISTRICTS SELECTING TO OPERATE UNDER OPTION TWO DESCRIBED IN SUBPARAGRAPH (II) OF PARAGRAPH (b) OF SUBSECTION (2) OF THIS SECTION SHALL DEVOTE THE INSTRUCTIONAL MINUTES INCLUDED IN THE CLASS SIZE REDUCTION PROGRAM PRIMARILY TO THE SUBJECT AREAS OF READING AND MATHEMATICS.

(4)  A SCHOOL DISTRICT THAT INTENDS TO IMPLEMENT A CLASS SIZE REDUCTION PROGRAM FOR THE 1999­2000 SCHOOL YEAR OR ANY SUBSEQUENT SCHOOL YEAR SHALL SUBMIT AN APPLICATION FOR INCENTIVE PAYMENTS TO THE DEPARTMENT NO LATER THAN JUNE 30 PRIOR TO THE COMMENCEMENT OF THE NEW SCHOOL YEAR.

(5)  THE BOARD OF EDUCATION OF A SCHOOL DISTRICT MAY INQUIRE OF THE GOVERNING BODY OF EACH CHARTER SCHOOL CHARTERED BY THAT SCHOOL DISTRICT WHETHER SUCH CHARTER SCHOOL WISHES TO PARTICIPATE IN A CLASS SIZE REDUCTION PROGRAM. A SCHOOL DISTRICT IMPLEMENTING A CLASS SIZE REDUCTION PROGRAM NEED NOT INCLUDE ALL CHARTER SCHOOLS CHARTERED BY THE SCHOOL DISTRICT.

22­85­105.  Class size under option one. (1)  A SCHOOL DISTRICT APPLYING FOR INCENTIVE PAYMENTS TO IMPLEMENT A CLASS SIZE REDUCTION PROGRAM PURSUANT TO OPTION ONE, AS A PART OF ITS APPLICATION FOR INCENTIVE PAYMENTS, MAY REQUEST THAT THE STATE BOARD GRANT THE SCHOOL DISTRICT A TWO­YEAR AUTHORIZATION, SUBJECT TO AVAILABLE APPROPRIATIONS, TO HAVE A TEACHER­PUPIL RATIO THAT AVERAGES ONE TEACHER PER EIGHTEEN PUPILS, WHETHER OR NOT EACH GROUP OF EIGHTEEN PUPILS IS ENROLLED IN A SEPARATE CLASS; EXCEPT THAT THERE SHALL NOT BE FEWER THAN ONE FULL­TIME TEACHER FOR EACH GROUP OF EIGHTEEN PUPILS FOR EACH GRADE LEVEL FOR WHICH OPTION ONE INCENTIVE PAYMENTS ARE REQUESTED. THE STATE BOARD OF EDUCATION SHALL NOT RENEW OR EXTEND THE AUTHORIZATION GRANTED PURSUANT TO THIS SECTION FOR ANY ADDITIONAL PERIOD OF TIME.

(2)  THE STATE BOARD MAY GRANT AN AUTHORIZATION TO PROCEED UNDER SUBSECTION (1) OF THIS SECTION IF ALL OF THE FOLLOWING REQUIREMENTS ARE MET:

(a)  EACH SCHOOL SITE FOR WHICH THE TWO­YEAR AUTHORIZATION IS REQUESTED IS CURRENTLY OPERATING ON A YEAR­ROUND OR OTHER MULTITRACK EDUCATION CALENDAR;

(b)  THE SCHOOL DISTRICT HAS DOCUMENTED TO THE SATISFACTION OF THE STATE BOARD THAT SPECIAL CIRCUMSTANCES EXIST AT THE SCHOOL SITE, INCLUDING BUT NOT LIMITED TO OVERCROWDING AT THE SCHOOL SITE TO THE EXTENT THAT, IF ANY ADDITIONAL AREA AT THE SCHOOL SITE WERE TO BE UTILIZED FOR THE PURPOSE OF PROVIDING THE ADDITIONAL FACILITIES NECESSARY TO MEET THE REQUIREMENTS OF THIS ARTICLE, SUCH UTILIZATION WOULD RESULT IN A SEVERE IMPAIRMENT OF THE ADEQUACY OF THE EDUCATION PROGRAM OR PROGRAMS AT THAT SCHOOL SITE; AND

(c)  THE SCHOOL DISTRICT HAS SUBMITTED A PLAN DEMONSTRATING TO THE SATISFACTION OF THE STATE BOARD THAT IT WILL FULLY MEET THE REQUIREMENTS OF SECTION 22­85­104 (2) (b) (I) UPON THE EXPIRATION OF THAT AUTHORIZATION.

22­85­106.  Application for incentive payments. (1)  A SCHOOL DISTRICT'S APPLICATION FOR INCENTIVE PAYMENTS TO IMPLEMENT A PROGRAM PURSUANT TO THIS ARTICLE SHALL INCLUDE THE DISTRICT'S CERTIFICATION OF EACH OF THE FOLLOWING ITEMS:

(a)  CERTIFICATION OF THE NUMBER OF CLASSES IN EACH ELIGIBLE GRADE LEVEL SELECTED FOR A CLASS SIZE REDUCTION PROGRAM INCENTIVE PAYMENT PURSUANT TO THIS ARTICLE;

(b)  CERTIFICATION OF PUPIL ENROLLMENT, AS OF OCTOBER 1 OF THE IMMEDIATE PRIOR CALENDAR YEAR, IN EACH CLASS SELECTED FOR CLASS SIZE REDUCTION PURSUANT TO PARAGRAPH (a) OF THIS SUBSECTION (1). CLASSES COMPRISED OF SPECIAL EDUCATION PUPILS ENROLLED IN SPECIAL DAY CLASSES ON A FULL­TIME BASIS SHALL NOT BE INCLUDED IN THIS PROGRAM. A SCHOOL DISTRICT MAY NEITHER CLAIM INCENTIVE PAYMENTS PURSUANT TO THIS ARTICLE FOR ANY PUPIL WHO IS ENROLLED IN A PROGRAM OF HOME­STUDY FOR THE FULL REGULAR SCHOOL DAY NOR FOR ANY PUPIL FOR ANY PORTION OF THE FULL REGULAR SCHOOL DAY THAT THE PUPIL IS ENROLLED IN A PROGRAM OF HOME­STUDY.

(c)  CERTIFICATION THAT A TEACHER HAS BEEN HIRED BY THE SCHOOL DISTRICT AND IS PROVIDING DIRECT INSTRUCTIONAL SERVICES TO EACH CLASS SELECTED FOR CLASS SIZE REDUCTION PURSUANT TO THIS ARTICLE AND THAT THERE ARE NOT MORE THAN EIGHTEEN PUPILS IN EACH SUCH CLASS;

(d)  CERTIFICATION THAT THE SCHOOL DISTRICT HAS MAINTAINED CLASS SIZES OF NOT MORE THAN EIGHTEEN PUPILS IN EACH CLASS WHOSE SIZE WAS REDUCED THROUGH PREVIOUS INCENTIVE PAYMENTS MADE UNDER THIS ARTICLE;

(e)  CERTIFICATION THAT THE SCHOOL DISTRICT HAS A STAFF DEVELOPMENT PROGRAM PURSUANT TO SECTION 22­85­110 AND THAT THE PROGRAM HAS BEEN APPROVED BY THE GOVERNING BOARD OF THE SCHOOL DISTRICT;

(f)  CERTIFICATION THAT THE SCHOOL DISTRICT WILL COLLECT AND MAINTAIN ANY DATA REQUIRED BY THE STATE BOARD PURSUANT TO RULE THAT WILL AID IN THE EVALUATION OF THE CLASS SIZE REDUCTION PROGRAM, INCLUDING BUT NOT LIMITED TO INDIVIDUAL TEST SCORES OR OTHER RECORDS OF PUPIL ACHIEVEMENT, WHICH DATA SHALL BE PROTECTED IN A MANNER THAT WILL NOT PERMIT THE PERSONAL IDENTIFICATION OF ANY PUPIL OR PARENT;

(g)  COMMENCING WITH THE 1999­2000 SCHOOL YEAR, AND FOR EACH SCHOOL YEAR THEREAFTER, CERTIFICATION THAT EACH CLASS WHOSE SIZE IS REDUCED PURSUANT TO THIS ARTICLE IS HOUSED IN EITHER A SEPARATE, SELF­CONTAINED CLASSROOM OR THAT THE SPACE OF EACH SUCH CLASS FOR EACH GRADE LEVEL AT THAT SCHOOL SITE PROVIDES A SQUARE FOOTAGE PER PUPIL ENROLLED IN EACH SUCH CLASS THAT IS NOT LESS THAN THE AVERAGE SQUARE FOOTAGE PER PUPIL ENROLLED IN THOSE GRADE LEVELS AT THAT SCHOOL SITE IN THE 1996­97 SCHOOL YEAR.

22­85­107.  Priorities in class size reduction. (1)  A SCHOOL DISTRICT MAY ESTABLISH A CLASS SIZE REDUCTION PROGRAM TO REDUCE CLASS SIZE IN KINDERGARTEN AND FIRST THROUGH THIRD GRADES, INCLUSIVE, AND THAT PROGRAM SHALL BE IMPLEMENTED AT EACH SCHOOL SITE ACCORDING TO THE FOLLOWING PRIORITIES:

(a)  IF ONLY ONE GRADE LEVEL IS TO BE REDUCED AT A SCHOOL SITE, THE GRADE LEVEL SHALL BE FIRST GRADE;

(b)  IF ONLY TWO GRADE LEVELS ARE TO BE REDUCED AT A SCHOOL SITE, THE GRADE LEVELS SHALL BE FIRST AND SECOND GRADES;

(c)  IF ONLY THREE GRADE LEVELS ARE TO BE REDUCED AT A SCHOOL SITE, THEN THOSE GRADE LEVELS SHALL BE FIRST THROUGH THIRD GRADES OR KINDERGARTEN AND FIRST AND SECOND GRADES. PRIORITY SHALL BE GIVEN TO THE REDUCTION OF CLASS SIZES IN FIRST AND SECOND GRADES BEFORE THE CLASS SIZES OF KINDERGARTEN OR THIRD GRADE ARE REDUCED.

(d)  IF FOUR GRADE LEVELS ARE TO BE REDUCED AT A SCHOOL SITE, THEN THOSE GRADE LEVELS SHALL BE KINDERGARTEN AND FIRST THROUGH THIRD GRADES.

(2)  IT IS THE INTENT OF THE GENERAL ASSEMBLY TO CONTINUE TO PERMIT THE USE OF COMBINATION CLASSES OF MORE THAN ONE GRADE LEVEL TO THE EXTENT THAT SCHOOL DISTRICTS ARE OTHERWISE PERMITTED TO USE THAT INSTRUCTIONAL STRATEGY. HOWEVER, ANY SCHOOL DISTRICT THAT USES A COMBINATION CLASS IN ANY CLASS FOR WHICH FUNDING IS RECEIVED PURSUANT TO THIS ARTICLE MAY NOT CLAIM FUNDING PURSUANT TO THIS ARTICLE IF THE TOTAL NUMBER OF PUPILS IN THE COMBINATION CLASS, REGARDLESS OF GRADE LEVEL, FOR ANY CLASS EXCEEDS EIGHTEEN PUPILS PER TEACHER ASSIGNED TO PROVIDE DIRECT INSTRUCTIONAL SERVICES.

(3)  THE GOVERNING BOARD OF A SCHOOL DISTRICT SHALL CERTIFY TO THE DEPARTMENT THAT IT HAS MET THE REQUIREMENTS OF THIS SECTION IN IMPLEMENTING ITS CLASS SIZE REDUCTION PROGRAM.

22­85­108.  Rules. (1)  ON OR BEFORE SEPTEMBER 1, 1998, THE STATE BOARD SHALL, BY RULE, DEVELOP A FORM TO BE USED FOR APPLICATIONS BY SCHOOL DISTRICTS DESIRING TO APPLY FOR INCENTIVE PAYMENTS PURSUANT TO THIS ARTICLE. THE DEPARTMENT SHALL MAKE THE FORM AVAILABLE TO ALL SCHOOL DISTRICTS.

(2)  THE STATE BOARD MAY ADOPT RULES TO IMPLEMENT THE PROVISIONS OF THIS ARTICLE, INCLUDING BUT NOT LIMITED TO THE FOLLOWING:

(a)  AREAS OF STUDY FOR STAFF DEVELOPMENT TRAINING AS DESCRIBED IN SECTION 22­85­110 AND THE PROCESS FOR APPROVING STAFF DEVELOPMENT TRAINING PROGRAMS;

(b)  DATA THAT THE SCHOOL DISTRICTS MUST COLLECT TO ASSIST WITH THE EVALUATION OF THE CLASS SIZE REDUCTION PROGRAM;

(c)  PROCEDURES FOR THE ENFORCEMENT OF SECTION 22­85­109 (3);

(d)  THE AMOUNT OF THE PER PUPIL INCENTIVE PAYMENTS UNDER OPTIONS ONE AND TWO AND THE ANNUAL MODIFICATION TO THE INCENTIVE PAYMENT AMOUNT DUE TO INFLATION.

22­85­109.  Computation of incentive payment ­ noncompliance ­ penalty. (1)  EACH YEAR THE STATE BOARD SHALL ESTABLISH THE AMOUNT OF THE PER PUPIL INCENTIVE PAYMENT THAT A SCHOOL DISTRICT PARTICIPATING UNDER OPTION ONE SHALL RECEIVE AND A LESSER AMOUNT FOR THE PER PUPIL INCENTIVE PAYMENT THAT A SCHOOL DISTRICT PARTICIPATING UNDER OPTION TWO SHALL RECEIVE. THE AMOUNT OF THE INCENTIVE PAYMENT THAT EACH SCHOOL DISTRICT IMPLEMENTING A CLASS SIZE REDUCTION PROGRAM PURSUANT TO THIS ARTICLE IS ELIGIBLE TO RECEIVE SHALL BE COMPUTED AS FOLLOWS:

(a)  IF A SCHOOL DISTRICT APPLIES TO PARTICIPATE IN OPTION ONE AS DESCRIBED IN SECTION 22­85­104 (2) (b) (I), THE DEPARTMENT SHALL ALLOCATE THE INCENTIVE PAYMENT TO THE APPLICANT SCHOOL DISTRICT FOR EACH PUPIL ACTUALLY ENROLLED IN THE CLASSES IN WHICH THE SCHOOL DISTRICT IMPLEMENTS THE PROGRAM; EXCEPT THAT THE MAXIMUM NUMBER OF PUPILS PER CLASS FOR WHICH A SCHOOL DISTRICT MAY CLAIM INCENTIVE PAYMENTS SHALL NOT EXCEED EIGHTEEN. THE NUMBER OF PUPILS CLAIMED PURSUANT TO THIS SUBSECTION (1) SHALL BE PUPILS ACTUALLY ENROLLED IN CLASSES PARTICIPATING IN THE CLASS SIZE REDUCTION PROGRAM AND SHALL NOT BE BASED ON THE AVERAGE SIZE OF THE CLASSES FOR ANY GRADE LEVEL FOR WHICH INCENTIVE PAYMENTS ARE CLAIMED.

(b)  IF A SCHOOL DISTRICT APPLIES TO PARTICIPATE IN OPTION TWO AS DESCRIBED IN SECTION 22­85­104 (2) (b) (II), THE DEPARTMENT SHALL ALLOCATE THE INCENTIVE PAYMENT TO THE APPLICANT SCHOOL DISTRICT PER PUPIL ACTUALLY ENROLLED IN THE CLASSES IN WHICH THE SCHOOL DISTRICT IMPLEMENTS THE PROGRAM; EXCEPT THAT THE MAXIMUM NUMBER OF PUPILS PER CLASS FOR WHICH A SCHOOL DISTRICT MAY CLAIM INCENTIVE PAYMENTS FOR THE INSTRUCTIONAL MINUTES OFFERED SHALL NOT EXCEED EIGHTEEN. THE NUMBER OF PUPILS CLAIMED PURSUANT TO THIS PARAGRAPH (b) SHALL BE PUPILS ACTUALLY ENROLLED IN CLASSES PARTICIPATING IN THE CLASS SIZE REDUCTION PROGRAM AND SHALL NOT BE BASED ON THE AVERAGE SIZE OF THE CLASSES FOR ANY GRADE LEVEL FOR WHICH INCENTIVE PAYMENTS ARE CLAIMED.

(c)  THE PER PUPIL AMOUNT SET FORTH IN PARAGRAPHS (a) AND (b) OF THIS SUBSECTION (1) SHALL BE PAYABLE IN A LUMP SUM NO LATER THAN THIRTY DAYS AFTER THE DEPARTMENT RECEIVES THE CERTIFICATION DESCRIBED IN PARAGRAPH (e) OF THIS SUBSECTION (1).

(d)  THE PER PUPIL AMOUNT SET FORTH IN PARAGRAPHS (a) AND (b) OF THIS SUBSECTION (1) SHALL BE INCREASED ANNUALLY FOR INFLATION.

(e)  THE DEPARTMENT SHALL ONLY ALLOCATE INCENTIVE PAYMENTS TO A SCHOOL DISTRICT UPON CERTIFICATION THAT ITS CLASS SIZE REDUCTION PROGRAM HAS BEEN IMPLEMENTED FOR THAT FISCAL YEAR.

(2)  IF A SCHOOL DISTRICT RECEIVES INCENTIVE PAYMENTS PURSUANT TO THIS ARTICLE BUT HAS NOT IMPLEMENTED ITS CLASS SIZE REDUCTION PROGRAM FOR ALL GRADES AND CLASSES FOR WHICH IT RECEIVED FUNDING PURSUANT TO THIS ARTICLE, THE DEPARTMENT SHALL NOTIFY THE STATE BOARD IN WRITING. THE STATE BOARD SHALL TAKE CARE TO AVOID OVERPAYMENT OF STATE MONEYS. IF IT IS DETERMINED THAT ANY SCHOOL DISTRICT HAS BEEN OVERPAID IN ANY YEAR DUE TO THE PAYMENT OF AN INCENTIVE PAYMENT TO A SCHOOL DISTRICT THAT FAILS TO REDUCE TO A CLASS SIZE OF EIGHTEEN OR FEWER PUPILS, THE STATE BOARD SHALL ADJUST THE FOLLOWING YEAR PAYMENT OR PAYMENTS TO SUCH SCHOOL DISTRICT SO AS TO RECOVER THE AMOUNT OVERPAID. IN THE EVENT THAT AN OVERPAYMENT CANNOT BE RECOVERED, THE AMOUNT THEREOF SHALL BE REFUNDED TO THE STATE PUBLIC SCHOOL FUND BY THE SCHOOL DISTRICT RECEIVING THE SAME.

(3)  THE DEPARTMENT SHALL INCORPORATE THE ENFORCEMENT PROCEDURES DEVELOPED PURSUANT TO RULE OF THE STATE BOARD AS AN INTEGRAL PART OF THE SCHOOL DISTRICT'S FINANCIAL AUDIT AND OTHER INVESTIGATIONS CONDUCTED BY THE DEPARTMENT OF EDUCATION.

22­85­110.  Staff development training. (1)  AS A CONDITION TO RECEIVING ANY INCENTIVE PAYMENT PURSUANT TO SECTION 22­85­109, SCHOOL DISTRICTS SHALL IMPLEMENT A STAFF DEVELOPMENT PROGRAM THAT MEETS THE REQUIREMENTS SET FORTH IN RULES OF THE STATE BOARD AND THAT REQUIRES ANY TEACHER WHO WILL PROVIDE DIRECT INSTRUCTIONAL SERVICES FOR A CLASS PARTICIPATING IN THE SCHOOL DISTRICT'S CLASS SIZE REDUCTION PROGRAM TO RECEIVE THE APPROPRIATE TRAINING NECESSARY TO MAXIMIZE THE EDUCATIONAL ADVANTAGES OF CLASS SIZE REDUCTION. THIS TRAINING SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO, METHODS FOR PROVIDING EACH OF THE FOLLOWING:

(a)  INDIVIDUALIZED INSTRUCTION;

(b)  EFFECTIVE TEACHING, INCLUDING CLASSROOM MANAGEMENT, IN SMALLER CLASSES;

(c)  IDENTIFYING AND RESPONDING TO PUPIL NEEDS; AND

(d)  OPPORTUNITIES TO BUILD ON THE INDIVIDUAL STRENGTHS OF PUPILS.

(2)  SCHOOL DISTRICTS MAY USE FUNDS CURRENTLY RECEIVED UNDER ARTICLE 54 OF THIS TITLE, INCENTIVE PAYMENTS RECEIVED UNDER THIS ARTICLE, OR ANY OTHER AVAILABLE FUNDS TO MEET THE REQUIREMENTS OF THIS SECTION.

22­85­111.  Evaluation. THE DEPARTMENT SHALL CONTRACT FOR AN INDEPENDENT EVALUATION OF THE CLASS SIZE REDUCTION PROGRAM TO BE COMPLETED ON OR BEFORE MARCH 28, 2005. THE COSTS OF THE EVALUATION SHALL BE PAID FROM FUNDS APPROPRIATED TO THE DEPARTMENT IN THE ANNUAL LONG APPROPRIATIONS ACT. THE EVALUATION SHALL CONSIDER THE DATA COLLECTED BY SCHOOL DISTRICTS PURSUANT TO SECTION 22­85­106. THE EVALUATION SHALL DETERMINE WHETHER THE CLASS SIZE REDUCTION PROGRAM HAS BEEN EFFECTIVE IN IMPROVING PUPIL ACHIEVEMENT AND SHALL IDENTIFY COMPONENTS OF A SUCCESSFUL CLASS SIZE REDUCTION PROGRAM. THE EVALUATION SHALL BE SUBMITTED TO THE CHAIRPERSONS OF THE JOINT BUDGET COMMITTEE, THE SENATE FINANCE COMMITTEE, THE HOUSE FINANCE COMMITTEE, THE SENATE EDUCATION COMMITTEE, THE HOUSE EDUCATION COMMITTEE, AND THE GOVERNOR NO LATER THAN MARCH 28, 2005.

SECTION 2.  22­2­106 (1), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

22­2­106.  State board ­ duties. (1)  It is the duty of the state board:

(f.9)  TO IMPLEMENT THE PROVISIONS OF THE "CLASS SIZE REDUCTION PROGRAM ACT OF 1998", AS SET FORTH IN ARTICLE 85 OF THIS TITLE.

SECTION 3.  Appropriation. In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the department of education, for the fiscal year beginning July 1, 1999, the sum of ___ dollars ($ ) and ___ FTE, or so much thereof as may be necessary, for the implementation of this act.

SECTION 4. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.