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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0643.01 JGG HOUSE BILL 98­1278

STATE OF COLORADO

BY REPRESENTATIVE Romero

EDUCATION

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING THE IMPLEMENTATION OF THE CLASS SIZE REDUCTION PILOT PROGRAM FOR THE REDUCTION OF CLASS SIZES IN THE ELEMENTARY GRADES, AND MAKING AN APPROPRIATION THEREFOR.

Bill Summary

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

Directs the department of education to establish a class size reduction pilot program, whereby the department selects up to 6 school districts each year with a demonstrated economic or scholastic need for the implementation of such a program. Allows school districts to apply to the department of education for selection for participation in the pilot program. Specifies that participating school districts will receive per pupil incentive payments to reduce the pupil­teacher ratios in kindergarten and 1st through 5th grades or any combination thereof.

Requires an application for participation in the pilot program to be submitted by a certain date and to identify specific information, including whether each school site and class will implement the class size reductions for full regular school days (option 1) 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. Allows the board of education of a school district to inquire of the governing body of each school chartered by that school district whether such charter school wishes to participate in the pilot program.

Provides that the department of education may select no more than 6 school districts each year to participate in the pilot program by determining those school districts that would benefit most from participation in the program. Directs the department of education to notify the selected school districts by a date certain.

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 the number of pupils identified in the school district's application.

Lists the items that a school board applying for participation in the pilot program shall certify. Excludes pupils in a home­study program.

Provides for the pilot program to be funded with one­half of the inflationary adjustment made to the statewide base per pupil funding for the 1998­99 budget year.

Directs the state board of education to develop an application form and to promulgate rules to implement the pilot program, including but not limited to rules addressing criteria for the selection of school districts to participate in the pilot program, staff development training, data for the school districts to collect, and enforcement.

Specifies that selected school districts shall receive incentive payments based upon their application in a lump sum payment. Provides for the repayment of the incentive payment by the school district if the school district receives the incentive payment but does not implement the class size reductions for all grades and classes for which it received funding.

Requires a school district selected for participation in the pilot program to implement a staff development training program. Identifies what the training program shall address.

Directs the department of education to contract for an independent evaluation of the pilot program by March 28, 2005.

Repeals the pilot program in 7 years.

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 Pilot Program

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

22­85­102.  Legislative declaration. (1)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT RESEARCH RESULTS PROVIDE CONVINCING EVIDENCE DOCUMENTING THE ADVANTAGES OF REDUCED CLASS SIZE AND ITS POSITIVE EFFECT ON STUDENT ACHIEVEMENT. THE GENERAL ASSEMBLY FURTHER FINDS THAT RESEARCH RESULTS INDICATE THAT THE MOST EFFECTIVE CLASS SIZE REDUCTION PROGRAMS ARE ONES THAT FOCUS ON THE EARLY YEARS OF SCHOOLING AND THAT EMPHASIZE CLASSES OF FEWER THAN TWENTY STUDENTS PER TEACHER. THE GENERAL ASSEMBLY RECOGNIZES THAT SMALLER CLASSES MAY NOT ONLY IMPROVE STUDENT ACHIEVEMENT, BUT MAY ALSO FOSTER OTHER POSITIVE CHANGES. THE GENERAL ASSEMBLY FINDS THAT A SMALLER CLASS SIZE WOULD ALLOW TEACHERS TO SPEND MORE TIME ASSESSING AND MEETING THE NEEDS OF INDIVIDUAL STUDENTS AND TO COVER MORE MATERIAL IN MORE DEPTH. FURTHERMORE, THE GENERAL ASSEMBLY FINDS THAT TEACHERS OF SMALLER CLASSES REPORT THAT SMALLER CLASSES FOSTER GREATER STUDENT PARTICIPATION IN CLASS. THE GENERAL ASSEMBLY FINDS THAT HAVING FEWER STUDENTS IN A CLASSROOM OFFERS TEACHERS GREATER FLEXIBILITY IN THEIR TEACHING METHODOLOGIES, INCLUDING ENHANCED OPPORTUNITIES TO IMPLEMENT CREATIVE, PARTICIPATORY TEACHING METHODS, TO EMPLOY SUPPLEMENTAL AND ENRICHMENT ACTIVITIES, AND TO USE LEARNING CENTERS MORE EXTENSIVELY. RESEARCH RESULTS FURTHER CONFIRM THAT REDUCED CLASS SIZE MAY IMPROVE PARENT­TEACHER COMMUNICATION. FINALLY, THE GENERAL ASSEMBLY FINDS THAT RESEARCH FINDINGS INDICATE CLASS SIZE REDUCTION FAVORABLY IMPACTS THE WELL­BEING AND MORALE OF BOTH STUDENTS AND TEACHERS AS EVIDENCED BY INCREASED STUDENT INTEREST IN SCHOOL, IMPROVED STUDENT SELF­CONCEPTS, AND DECREASED TEACHER ABSENTEEISM.

(2)  ACCORDINGLY, THE GENERAL ASSEMBLY HEREBY DETERMINES THAT THE IMPLEMENTATION OF A CLASS SIZE REDUCTION PROGRAM WOULD BE BENEFICIAL TO THE CITIZENS OF THE STATE OF COLORADO.

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

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

(2)  "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 PUPIL­TEACHER GROUPS WITH A LARGER RATIO THAN THE REDUCED PUPIL­TEACHER RATIO SELECTED BY THE SCHOOL DISTRICT. 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.

(3)  "PILOT PROGRAM" MEANS THE CLASS SIZE REDUCTION PILOT PROGRAM CREATED BY THIS ARTICLE.

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

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

22­85­104.  Class size reduction pilot program. (1)  THE DEPARTMENT SHALL ESTABLISH A CLASS SIZE REDUCTION PILOT PROGRAM WHEREBY THE DEPARTMENT SHALL SELECT ANNUALLY UP TO SIX QUALIFYING SCHOOL DISTRICTS THAT DEMONSTRATE PUPIL READING AND MATHEMATICS SCORES THAT ARE SIGNIFICANTLY BELOW THE STATE AVERAGE ON THE STATEWIDE READING ASSESSMENT AND MATHEMATICS ASSESSMENT OR THAT DEMONSTRATE ECONOMIC RECESSION OR OTHER ECONOMIC DISADVANTAGES. THE SIX SCHOOL DISTRICTS THAT ARE SELECTED TO PARTICIPATE IN THE PILOT PROGRAM SHALL RECEIVE PER PUPIL INCENTIVE PAYMENTS TO BE USED BY THE SCHOOL DISTRICT TO REDUCE THE EXISTING PUPIL­TEACHER RATIOS IN ANY ONE OR A COMBINATION OF KINDERGARTEN AND FIRST THROUGH FIFTH GRADES.

(2)  SUBJECT TO THE PROVISIONS OF SECTION 22­85­107, ANY SCHOOL DISTRICT MAY APPLY TO THE DEPARTMENT TO PARTICIPATE IN THE PILOT PROGRAM AND TO RECEIVE INCENTIVE PAYMENTS TO IMPLEMENT A PILOT PROGRAM IN THAT SCHOOL DISTRICT IN ANY ONE GRADE OR A COMBINATION OF KINDERGARTEN AND FIRST THROUGH FIFTH GRADES IN THAT SCHOOL DISTRICT.

(3)  AN APPLICATION SUBMITTED PURSUANT TO SUBSECTION (2) OF THIS SECTION SHALL IDENTIFY:

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

(b)  EACH CLASS THAT WILL PARTICIPATE IN THE PILOT PROGRAM IN THAT SCHOOL DISTRICT AND 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 SOUGHT; 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 SOUGHT;

(c)  THE SCHOOL DISTRICT'S READING AND MATHEMATIC ASSESSMENT SCORES FOR THE RELEVANT GRADES;

(d)  A FULL DESCRIPTION OF THE ECONOMIC DISADVANTAGES THAT THE SCHOOL DISTRICT BELIEVES WOULD WARRANT THE SCHOOL DISTRICT'S INCLUSION IN THE PILOT PROGRAM;

(e)  THE PUPIL­TEACHER RATIO THE SCHOOL DISTRICT SELECTS AS ITS GOAL IF IT WERE TO BE SELECTED TO PARTICIPATE IN THE PILOT PROGRAM;

(f)  THE SCHOOL DISTRICT'S GOALS AND DESIRED OUTCOMES IF IT WERE TO BE SELECTED TO PARTICIPATE IN THE PILOT PROGRAM;

(g)  THE METHOD BY WHICH THE SCHOOL DISTRICT WOULD MEASURE AND EVALUATE OUTCOMES AND PERFORMANCE IF IT WERE TO BE SELECTED TO PARTICIPATE IN THE PILOT PROGRAM; AND

(h)  THE AMOUNT OF THE PER PUPIL INCENTIVE PAYMENT THAT THE SCHOOL DISTRICT DETERMINES IT WOULD NEED IN ORDER TO IMPLEMENT A PILOT PROGRAM IN THE SCHOOL DISTRICT.

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

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

(6)  A SCHOOL DISTRICT SHALL SUBMIT AN APPLICATION FOR PARTICIPATION IN THE PILOT PROGRAM TO THE DEPARTMENT NO LATER THAN JULY 1 PRIOR TO THE COMMENCEMENT OF THE NEW SCHOOL YEAR FOR WHICH IT IS APPLYING FOR INCENTIVE PAYMENTS.

(7)  THE DEPARTMENT SHALL SELECT NO MORE THAN SIX SCHOOL DISTRICTS EACH YEAR TO PARTICIPATE IN THE PILOT PROGRAM. THE DEPARTMENT SHALL DETERMINE THOSE SCHOOL DISTRICTS THAT WOULD BENEFIT MOST FROM PARTICIPATION IN THE PILOT PROGRAM BASED UPON THE INFORMATION PROVIDED IN THE APPLICATION RELATING TO THE STATEWIDE ASSESSMENT RESULTS AND THE ECONOMIC SITUATION OF THAT SCHOOL DISTRICT. THE DEPARTMENT SHALL NOTIFY THE SELECTED SCHOOL DISTRICTS IN WRITING NO LATER THAN AUGUST 1 PRIOR TO THE COMMENCEMENT OF THE NEW SCHOOL YEAR FOR WHICH THEY APPLIED.

22­85­105.  Class size reduction under option one. (1)  AS PART OF AN APPLICATION TO PARTICIPATE IN THE PILOT PROGRAM PURSUANT TO OPTION ONE, AS DESCRIBED IN SECTION 22­85­104 (3) (b) (I), A SCHOOL DISTRICT MAY REQUEST THAT THE DEPARTMENT GRANT THE SCHOOL DISTRICT A TWO­YEAR AUTHORIZATION, SUBJECT TO AVAILABLE APPROPRIATIONS, TO HAVE A TEACHER­PUPIL RATIO THAT AVERAGES ONE TEACHER PER NUMBER OF PUPILS SELECTED BY THE SCHOOL DISTRICT, REGARDLESS OF WHETHER EACH GROUP OF PUPILS IS ENROLLED IN A SEPARATE CLASS; EXCEPT THAT THERE SHALL NOT BE FEWER THAN ONE FULL­TIME TEACHER FOR EACH GROUP OF PUPILS IDENTIFIED BY THE SCHOOL DISTRICT FOR EACH GRADE LEVEL FOR WHICH OPTION ONE INCENTIVE PAYMENTS ARE REQUESTED. THE DEPARTMENT SHALL NOT RENEW OR EXTEND THE AUTHORIZATION GRANTED PURSUANT TO THIS SECTION FOR ANY ADDITIONAL PERIOD OF TIME.

(2)  THE DEPARTMENT 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 DEPARTMENT 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 DEPARTMENT THAT IT WILL FULLY MEET THE REQUIREMENTS OF OPTION ONE, AS DESCRIBED IN SECTION 22­85­104 (3) (b) (I).

22­85­106.  Application for incentive payments. (1)  A SCHOOL DISTRICT'S APPLICATION FOR PARTICIPATION IN THE PILOT PROGRAM SHALL INCLUDE THE SCHOOL DISTRICT'S CERTIFICATION OF EACH OF THE FOLLOWING ITEMS:

(a)  CERTIFICATION OF THE NUMBER OF CLASSES IN EACH ELIGIBLE GRADE LEVEL SELECTED FOR AN 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 AN INCENTIVE PAYMENT 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 HOME STUDY 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 HOME STUDY.

(c)  CERTIFICATION THAT A TEACHER HAS BEEN HIRED BY THE SCHOOL DISTRICT AND IS PROVIDING DIRECT INSTRUCTIONAL SERVICES TO EACH CLASS SELECTED FOR AN INCENTIVE PAYMENT PURSUANT TO PARAGRAPH (a) OF THIS SUBSECTION (1) AND THAT THERE ARE NO MORE PUPILS IN EACH SUCH CLASS THAN THE NUMBER SELECTED BY THE SCHOOL DISTRICT;

(d)  CERTIFICATION THAT THE SCHOOL DISTRICT HAS MAINTAINED CLASS SIZES OF NO MORE PUPILS IN EACH CLASS WHOSE SIZE WAS REDUCED THROUGH PREVIOUS INCENTIVE PAYMENTS MADE PURSUANT TO THIS ARTICLE THAN THE NUMBER SELECTED BY THE SCHOOL DISTRICT;

(e)  CERTIFICATION THAT THE SCHOOL DISTRICT HAS A STAFF DEVELOPMENT PROGRAM PURSUANT TO SECTION 22­85­109 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 PILOT PROGRAM, INCLUDING BUT NOT LIMITED TO INDIVIDUAL RESULTS ON STATEWIDE ASSESSMENTS OR OTHER EVIDENCE 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 1998­99 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 SUCH CLASS FOR EACH GRADE LEVEL AT THAT SCHOOL SITE PROVIDES A SQUARE FOOTAGE PER PUPIL ENROLLED IN 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.  Rules. (1)  ON OR BEFORE JULY 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 THROUGH SELECTION TO PARTICIPATE IN THE PILOT PROGRAM PURSUANT TO THIS ARTICLE. THE DEPARTMENT SHALL MAKE THE FORM AVAILABLE TO ALL SCHOOL DISTRICTS.

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

(a) CRITERIA FOR THE SELECTION OF SIX QUALIFYING SCHOOL DISTRICTS TO PARTICIPATE IN THE PILOT PROGRAM;

(b)  AREAS OF STUDY FOR STAFF DEVELOPMENT TRAINING AS DESCRIBED IN SECTION 22­85­109 AND THE PROCESS FOR APPROVING STAFF DEVELOPMENT TRAINING PROGRAMS;

(c)  DATA THAT THE SCHOOL DISTRICTS MUST COLLECT TO ASSIST WITH THE EVALUATION OF THE PILOT PROGRAM;

(d)  PROCEDURES FOR THE ENFORCEMENT OF SECTION 22­85­108 (2);

(e)  SUCH OTHER RULES AS THE STATE BOARD DEEMS NECESSARY FOR THE IMPLEMENTATION OF THE PILOT PROGRAM.

22­85­108.  Allocation of incentive payment ­ noncompliance ­ refund ­ funding. (1) (a)  FOR EACH SCHOOL DISTRICT SELECTED PURSUANT TO SECTION 22­85­104 (7), THE DEPARTMENT SHALL ALLOCATE THE INCENTIVE PAYMENT TO THE SELECTED 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 THAT NUMBER IDENTIFIED IN THE SCHOOL DISTRICT'S APPLICATION. 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 (3) (b) (II), THE DEPARTMENT SHALL ALLOCATE THE INCENTIVE PAYMENT TO THE SELECTED 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 FOR THE INSTRUCTIONAL MINUTES OFFERED SHALL NOT EXCEED THAT NUMBER IDENTIFIED IN THE SCHOOL DISTRICT'S APPLICATION. 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 SOUGHT.

(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 (d) OF THIS SUBSECTION (1).

(d)  THE DEPARTMENT SHALL ALLOCATE INCENTIVE PAYMENTS TO A SCHOOL DISTRICT ONLY UPON CERTIFICATION THAT THE CLASS SIZE REDUCTIONS FOR SUCH SCHOOL DISTRICT HAVE BEEN IMPLEMENTED FOR THAT FISCAL YEAR.

(2)  IF A SCHOOL DISTRICT RECEIVES INCENTIVE PAYMENTS PURSUANT TO THIS SECTION BUT HAS NOT IMPLEMENTED THE CLASS SIZE REDUCTIONS FOR ALL GRADES AND CLASSES FOR WHICH IT RECEIVED INCENTIVE PAYMENTS PURSUANT TO THIS SECTION, 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 IN COMPLIANCE WITH THE PROVISIONS OF ITS APPLICATION, THE STATE BOARD SHALL ADJUST THE FOLLOWING YEAR'S 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.

(4) (a)  THE PILOT PROGRAM SHALL BE FUNDED THROUGH THE USE OF ONE­HALF OF THE INFLATIONARY ADJUSTMENT MADE TO THE STATEWIDE BASE PER PUPIL FUNDING MADE FOR THE 1998­99 BUDGET YEAR, PURSUANT TO SECTION 22­54­104 (5) (a).

(b)  IF THE FUNDING IDENTIFIED IN PARAGRAPH (a) OF THIS SUBSECTION (4) IS INSUFFICIENT TO MEET THE FISCAL REQUIREMENTS OF THE PILOT PROGRAM SET FORTH IN THIS ARTICLE, THEN THE PER PUPIL INCENTIVE PAYMENT SHALL BE REDUCED BY A PERCENTAGE IN PROPORTION TO THE AMOUNT OF THE SHORTFALL.

22­85­109.  Staff development training. (1)  AS A CONDITION TO RECEIVING ANY INCENTIVE PAYMENT PURSUANT TO SECTION 22­85­108, PARTICIPATING SCHOOL DISTRICTS SHALL IMPLEMENT A STAFF DEVELOPMENT PROGRAM THAT MEETS THE REQUIREMENTS SET FORTH IN RULES PROMULGATED BY 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.

22­85­110.  Evaluation. THE DEPARTMENT SHALL CONTRACT FOR AN INDEPENDENT EVALUATION OF THE PILOT 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 AND THE SCHOOL DISTRICT'S OWN OUTCOME AND PERFORMANCE MEASUREMENTS. THE EVALUATION SHALL DETERMINE WHETHER THE PILOT 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 FINANCE COMMITTEES OF THE SENATE AND THE HOUSE OF REPRESENTATIVES, THE EDUCATION COMMITTEES OF THE SENATE AND THE HOUSE OF REPRESENTATIVES, AND THE GOVERNOR NO LATER THAN MARCH 28, 2005.

22­85­111.  Repeal. THIS ARTICLE IS REPEALED, EFFECTIVE JULY 1, 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 PILOT PROGRAM", 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, 1998, the sum of ___ dollars ($ ) and ___ FTE, or so much thereof as may be necessary, for the implementation of this act.

SECTION 4.  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.