Education Public Schools - Digest of Bills

Digest of Bills - 2003

EDUCATION PUBLIC SCHOOLS

S.B. 03-36 Graduation requirement - course on civil government - community forum. Makes satisfactory completion of a course on the civil government of the United States and the state of Colorado a requirement for high school graduation in public schools. Applies to each student entering the first year of high school on and after August 6, 2003.

Directs each school district to convene a community forum at least once every 10 years to discuss adopted content standards in civics and acceptable performance levels. Requires the school district to consider this community input when establishing graduation requirements.

APPROVED by Governor April 22, 2003
EFFECTIVE August 6, 2003
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

S.B. 03-53 Colorado school for the deaf and blind - governance - restructuring - board of trustees - authority - funding. Effective July 1, 2004, re-establishes the Colorado school for the deaf and the blind ("school") as an educational institution located in Colorado Springs, and specifies that the school may include other facilities and programs in the state. Transfers the school to the department of education as a type 1 transfer.

Designates the school as a local education agency for purposes of federal law, except for child nutrition programs. Permits the school to deliver educational services on a local and regional basis that may involve:

● Intergovernmental agreements;

● Boards of cooperative services; and

● Charter schools designed solely for deaf or blind students.

Creates a governing board ("board of trustees") for the school. Sets membership, terms, qualifications, duties, and powers of the board of trustees. Authorizes the board of trustees to promulgate rules for the operation of the school. Permits the board of trustees to charter schools designed for deaf or blind students. Requires the board of trustees to promulgate rules that describe the process for the specialized charter applications. Requires the board of trustees to issue an annual report to the general assembly regarding student assessment data, training for the school's teachers, and parental involvement. Specifies the authority of the board of trustees to appoint the superintendent and specifies qualifications for the superintendent and the teachers. Clarifies that the school may offer specialized programs for adults with sensory impairments. Effective September 1, 2003, permits the school to create and use a nonprofit entity for funding purposes. Repeals provisions concerning the current advisory board for the school.

APPROVED by Governor May 2, 2003
EFFECTIVE July 1, 2004

S.B. 03-72 Sex offender notification - sex offender management board materials. Requires each public school in the state, at the beginning of each school year, to provide parents with a statement about how to access the sex offender registration database for their community. Compels the sex offender management board to develop the statement and educational materials regarding sex offenders for use by schools. Directs the sex offender management board to provide the statement and materials to the department of education who shall make them available to schools.

APPROVED by Governor March 18, 2003
EFFECTIVE March 18, 2003

S.B. 03-117 School accountability reports - date of delivery - website. Delays the date by which the department of education ("department") is required to deliver school accountability reports ("reports") to public schools. Deletes the requirement that the department wait to update its website to include reports until after the department transmits the reports for printing.

APPROVED by Governor April 17, 2003
EFFECTIVE August 6, 2003
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

S.B. 03-137 Statewide assessments - "unsatisfactory" schools - deletion of deadlines - conversion to charter schools - earlier deadlines. Deletes the provisions that require the department of education, by May 1, 2003, and by May 1 of each year thereafter, to release the statewide assessment results and notify a school district that a school will receive an "unsatisfactory" academic performance rating for the preceding school year.

Moves up the deadlines for:

● The state board of education to issue a request for proposals for the operation of an independent charter school, from May 10 to January 15;

● The completion of negotiations on the independent charter, from August 15 to May 30; and

● The school district's board of education to accept the independent charter application following a notice and hearing, from August 15 to May 30.

APPROVED by Governor March 20, 2003
EFFECTIVE March 20, 2003

S.B. 03-149 School district - budget procedures - accounting procedures. Requires each school district to hold unrestricted general fund or cash fund emergency reserves in the amount required by section 20 (5) of article X of the state constitution. Specifies that a school district budget shall not allow for expenditures, interfund transfers, or reserves, in excess of available revenues and beginning fund balances. If a school district budget includes the use of a beginning fund balance, requires the school district board of education ("board") to adopt a resolution specifically authorizing the use of the beginning fund balance. Specifies the minimum contents of the resolution.

Requires each school district to prepare an annual itemized reconciliation between the district's fiscal year-end fund balances based on the budgetary basis of accounting used by the school district and the district's fiscal year-end fund balances based on the modified accrual basis of accounting. Directs each board to ensure that the school district uses the full accrual basis of accounting when budgeting and accounting for enterprise funds. Requires each board, at least quarterly, to review the school district's financial situation and to require school district personnel to submit a report concerning the school district's financial situation. Specifies the contents of the report. Clarifies that the provision concerning loans from one fund to another within a school district budget applies to all of the funds in the school district's budget.

APPROVED by Governor April 22, 2003
EFFECTIVE July 1, 2003

S.B. 03-158 Sale and leaseback of property. Prior to July 1, 2005, authorizes a school district to deposit the proceeds of a sale of real property of the school district in the school district's general fund if:

● The school district declares a fiscal shortfall emergency;

● The sale is to a lessor who leases the real property back to the school district pursuant to a lease-purchase agreement for not more than one year; and

● The terms of the agreements are approved by the state treasurer.

Describes the conditions under which a school district board of education may declare a fiscal shortfall emergency. Authorizes the state treasurer to buy and leaseback real property owned by a school district. Specifies when the treasurer may do so, conditions imposed on the transaction, and remedies for breach of the lease agreement.

APPROVED by Governor April 22, 2003
EFFECTIVE April 22, 2003

S.B. 03-183 FY 2002-03 budget reduction bill - K-12 public education programs - modifications - reduction or elimination of funding - repeals. For the 2002-03 fiscal year, modifies certain education programs and funding as follows:

● With regard to the Colorado preschool program, deletes the requirement that the department of education (department) reallocate any unused positions to other participating school districts;

● Eliminates the requirement that the state fund and districts budget an additional $21 per pupil for the purchase of new textbooks and eliminates the $15,018,326 appropriation from the state education fund for such purpose; allows districts to offset the elimination of such funding under certain circumstances by expending moneys in the district's capital reserve fund in the 2002-03 and 2003-04 budget years;

● For purposes of funding public school capital construction in accordance with the capital construction settlement agreement, increases the amount of the transfer of lottery proceeds to the school construction and renovation fund by $900,000, transfers $3,499,940 of lottery proceeds to the school capitol construction expenditures reserve, and decreases the appropriation from the state education fund for such purposes by $4,399,940;

● Modifies the charter school capital construction program to require charter schools to submit documentation concerning expenditures made as of January 31, 2003, from moneys received in the 2001-02 budget year and moneys expended, encumbered, or obligated as of January 31, 2003, in anticipation of the receipt of moneys in the 2002-03 budget year; requires any moneys received during the 2001-02 budget year but not expended by January 31, 2003, to revert back to the state education fund; and requires any moneys appropriated for the 2002-03 budget year for charter school capital construction that are not distributed to school districts to remain in the state education fund;

● Eliminates bonuses available under the school improvement grant program to schools that make adequate progress and the $150,000 appropriation from the state education fund for such bonuses;

● Eliminates funding for the facility summer school grant program, transfers any moneys remaining in the facility summer school grant program fund to the state education fund, and eliminates the $500,000 appropriation from the state education fund for the program;

● Reduces state aid for school breakfast programs in low-performing schools to $250,000 and appropriates such amount from the general fund; reduces the general fund appropriation and increases the state education fund appropriation for the state's share of districts' total program funding by $250,000; and

● Eliminates the specification of the amount of the increase in the maintenance of effort base and clarifies that the general fund appropriation requirement for total program funding does not apply when Colorado personal income grows less than 4.5% between the 2 calendar years preceding the fiscal year in which the appropriation is made.

For the 2002-03 and future fiscal years:

● Repeals the summer school grant program, transfers any moneys remaining in the summer school grant program fund to the state education fund, and eliminates the $985,400 appropriation from the state education fund for the program;

● Repeals the teacher pay incentive program and eliminates the $4,210,400 appropriation from the state education fund for the program; and

● Eliminates increasing enrollment aid and the $260,354 appropriation from the state public school fund for such purpose.

Requires the state treasurer to transfer the balance of the science and technology education fund to the state education fund on March 5, 2003.

APPROVED by Governor March 5, 2003
EFFECTIVE March 5, 2003

S.B. 03-195 FY 2002-03 budget reduction bill - public school funding - general fund maintenance of effort requirement for total program - exception - reduction in general fund appropriation for FY 2002-03. For the 2002-03 fiscal year, reduces the general fund appropriation for the state's share of districts' total program funding, and eliminates the specification of the amount of the increase in the maintenance of effort base.

Clarifies that the general fund appropriation for total program requirement does not apply when Colorado personal income grows less than 4.5% between the 2 calendar years preceding the fiscal year in which the appropriation is made.

APPROVED by Governor March 5, 2003
EFFECTIVE March 5, 2003

S.B. 03-237 School district - bond redemption fund administration - recovery for state's payment of school district obligations. Requires a school district board of education to select at least one third-party custodian to administer the school district's bond redemption fund, unless the county treasurer maintains the accounts and funds of the school district or the school district has given notice that it will not accept debt payments by the state treasurer. Specifies the powers of the custodian.

If a school district is unable to make a payment on a multi-fiscal-year obligation and the state treasurer covers the payment on behalf of the school district, allows the state treasurer to recoup the amount forwarded by withholding from both the school district's state share of total program and the unpledged tax revenues due the school district. Specifies the amount withheld generally cannot exceed 1/12th of the amount forwarded and the state treasurer cannot withhold for more than 12 months for each occasion on which a payment is forwarded. Allows the school district to make early repayment of the amount forwarded by the state treasurer. Allows a school district to give notice to the state treasurer that it will not accept debt payment from the state treasurer.

When a school district board of education certifies to the county treasurer the amount of the district's needed revenues, allows the board of education to include an amount to create a reserve for the payment of bonds in future years either prior to or at their maturities.

APPROVED by Governor April 22, 2003
EFFECTIVE April 22, 2003

S.B. 03-248 School finance - K-12 education programs - school district and charter school capital construction - school district accreditation - public school fund - business incentive agreements - school accountability reports - appropriations. Amends the "Public School Finance Act of 1994" in the following respects:

District Total Program Definitions

At-risk pupils:

● For the 2003-04 budget year and budget years thereafter, modifies the definition of "at-risk pupils" to include only those pupils eligible for free lunch.

● Eliminates the definition of "at-risk funded pupil count" and the authority of districts to average at-risk pupil count for up to 3 years.

Funded pupil count:

● For the 2003-04 budget year and budget years thereafter, modifies the definition of "funded pupil count" to include a district's preschool enrollment in addition to a district's pupil enrollment and on-line pupil enrollment.

● For the 2000-01 through 2002-03 budget years, excludes preschool pupils from a district's pupil enrollment for purposes of determining pupil enrollment based on the number of pupils averaged over a 2-, 3-, or 4-year period.

Preschool enrollment:

● Defines "preschool enrollment" as the number of pupils enrolled in a district preschool program pursuant to the "Colorado Preschool Program Act" on October 1 or the nearest school date within the applicable budget year, and specifies that the pupils are counted as half-day pupils.

Pupil enrollment:

● Specifies that a pupil enrolled in a full-day kindergarten is counted as a full-day pupil only if the pupil is enrolled in the full-day kindergarten pilot program.

● Eliminates preschool pupils enrolled in a district preschool program pursuant to the "Colorado Preschool Program Act" from the definition of "pupil enrollment".

● Authorizes the state board of education (state board) to adopt rules for the purpose of counting pupils who are enrolled as less than full-time students.

● Requires school districts, in certifying the district's pupil enrollment to the state board, to specify those students enrolled in grades 1-12 who are enrolled as full-time students and those who are enrolled as less than full-time students.

Minimum Per Pupil Funding

Defines "minimum per pupil funding" as follows:

● For the 2003-04 budget year, $5,511, which is an increase in the minimum per pupil funding for school districts of 1.39% over the minimum per pupil funding amount for the 2002-03 budget year.

● For the 2004-05 budget year and budget years thereafter, $5,511, as adjusted based on the annual percentage increase in the statewide base per pupil funding.

Statewide Base Per Pupil Funding

For the 2003-04 budget year, specifies that the statewide base per pupil funding is $4,570.31, which is an amount equal to $4,441.51 supplemented by $128.80 to account for a 1.9% inflation increase plus one percentage point.

District Size Factor

Reduces the size factor for all districts by 0.0045 while maintaining the "L-curve".

Cost of Living Factor

For the 2003-04 budget year and each budget year thereafter in which a new cost of living analysis is required, funds the biennial cost of living analysis from the total amount appropriated for the state share of districts' total program funding.

District Budgeting Requirements

● Specifies that for the 2003-04 budget year, the minimum dollar amount a school district is required to budget per pupil for the instructional supplies and materials account and for the capital reserve fund shall be equal to the amount the school district was required to budget to the account and the fund in the 2002-03 budget year.

● Eliminates the requirement that a school district expend a certain portion of its at-risk funding attributable to pupils whose dominant language is not English on the implementation of the district's English language proficiency program and the requirement that school districts with more than 6,000 pupils submit a report to the department of education (department) concerning how the district used its at-risk funding.

Preschool Enrollment Certification

Requires the secretary of the board of education of each school district to certify annually to the state board the preschool enrollment of the district taken in the preceding October.

Makes the following amendments concerning the financing of public schools:

Boards of Cooperative Services

Modifies the procedure for the state board to grant moneys to boards of cooperative services (BOCES) as follows:

● Specifies that BOCES are eligible, rather than entitled, to receive state moneys upon receiving approval by the state board.

● Allows the state board to grant $10,000 to each eligible BOCES, subject to available appropriations.

● Specifies that if available funds are insufficient to award the full $10,000 to each eligible board, all awards for that year are to be reduced proportionately.

● Eliminates the requirement that the general assembly make a separate annual appropriation to the state board to cover the cost of the grants to BOCES.

District Accreditation Requirements

● Requires school districts to comply with state law concerning budgeting, accounting, and reporting procedures as a condition of accreditation.

● Requires the state board to establish this compliance requirement by rule as an accreditation indicator.

Colorado Preschool Program

● For the 2003-04 and 2004-05 budget years, reduces the number of available state preschool program slots to 9,050 children.

● For the 2005-06 budget year and budget years thereafter, restores the number of available state preschool program slots to 11,050 children.

● For the 2003-04 budget year and budget years thereafter, allows 1,000 of the state preschool program slots to be used for full-day kindergarten programs.

Charter School Financing

● Allows school districts to retain a portion of a charter school's per pupil share of the central administrative costs for charter school pupils enrolled in on-line programs.

● Expands the definition of "central administrative overhead costs" for purposes of charter school financing by adding salaries and benefits for administrative job classifications under the headings of "support services - business" and "support services - central" in the school district chart of accounts.

Full-day Kindergarten Pilot Program

● Repeals the full-day kindergarten pilot program in unsatisfactory schools, effective July 1, 2003, instead of July 1, 2006.

● Allows a school district, on and after July 1, 2003, and subject to the receipt of sufficient moneys from the federal government through the "No Child Left Behind Act of 2001", to expand its current half-day kindergarten programs to full-day kindergarten educational programs to serve students at schools that received an academic performance rating of "unsatisfactory" or "low" for the previous school year.

On-line Pupil Enrollment

● For the 2002-03 budget year only, allows school districts to count up to an additional statewide total of 135 students who, as of October 1, are enrolled in, attending, and actively participating in on-line programs and who were enrolled in a public school or charter school after October 1 of the preceding school year or who were enrolled in a private school or were participating in a home-based education program or home instruction by licensed teachers in the preceding school year.

● Specifies that a student enrolled in an on-line program complies with the compulsory attendance requirements through participation in the program.

● For the 2003-04 budget year and budget years thereafter, for purposes of determining total program funding, prohibits a school district from counting students who enroll in or transfer into an on-line program in the school district in the district's on-line pupil enrollment unless:

● The student was included in a school district's pupil enrollment or on-line enrollment for the preceding school year and the student substantially completed the assigned coursework for the classes for at least one semester of the preceding school year and received a semester grade for such classes; or

● The student, in the preceding school year, was not enrolled in any private school, did not participate in a nonpublic, home-based education program, and did not participate in home instruction by a licensed or certified teacher.

● Requires a student who is enrolled for a majority of the time in an on-line program to obtain permission from the on-line program prior to enrolling in a course at a traditional public school. Allows the on-line program to negotiate with the school district for payment of costs incurred as a result of the student's participation in a course at a traditional public school.

● Allows a school district to receive only minimum per pupil funding for the entire year for a student who transfers into an on-line program after the October 1 count.

● Specifies that if a student who is included in a school district's pupil enrollment transfers to an on-line program within the same district within the same school year, but is not eligible to be counted in the district's on-line enrollment, the department is to remove the student from the district's pupil enrollment and reduce the district's total program funding accordingly for the entire school year.

● Requires a school district to provide information to an on-line program to verify that a student meets the requirements for enrollment in the on-line program.

● Allows the state board to promulgate rules allowing exemptions from the rules regarding counting on-line students for:

● Students whose parents or legal guardians remove them from school for extraordinary reasons;

● Students who are habitually disruptive or are otherwise at risk; and

● Students who did not reside in and attend a school in the state during the prior school year.

● Modifies the definition of "on-line pupil enrollment" to include only pupils who are enrolled in, attending, and actively participating in an on-line program.

Public School Fund

● For the 2003-04 fiscal year and each fiscal year thereafter, caps the amount of interest earnings from the public school fund that may be expended for the maintenance of public schools at $19 million.

● Specifies that any amount of interest the public school fund earns that exceeds the cap is to remain in the fund as principal.

● Eliminates the definition of "interest", which includes both interest and capital gains, for purposes of the public school fund.

Capital Construction Expenditures Reserve

For the 2003-04 budget year only, suspends the requirement that the school capital construction expenditures reserve receive the same amount of funding from the state education fund as the charter school capital construction fund.

Charter School Capital Construction

● For the 2003-04 budget year and budget years thereafter, defines "qualified charter school" as:

● A charter school that is not operating in a school district facility and that has capital construction costs; or

● A charter school that is operating in a school district facility but also has capital construction costs.

● For the 2003-04 budget year and budget years thereafter, excludes the following charter schools from the definition of "qualified charter school":

● A charter school that does not have capital construction costs, whether operating in a school district facility or not; or

● A charter school that is operating in a state-owned and state-maintained facility.

● For the 2003-04 budget year and budget years thereafter, allows qualified charter schools that are not operating in a school district facility and that have capital construction costs to receive a per pupil amount of capital construction funding, but specifies that charter schools that have capital construction costs but are operating in a school district facility receive one-half of such amount.

● For the 2003-04 budget year and budget years thereafter, caps the appropriation from the state education fund for capital construction aid to qualified charter schools at $5 million rather than allowing the appropriation to annually increase by the rate of inflation plus one percentage point through the 2011-12 budget year and by the rate of inflation for the 2012-13 budget year and each budget year thereafter.

● Authorizes the state board to approve and order payments from the school capital construction expenditures reserve for supplemental assistance to charter schools that do not otherwise qualify for charter school capital construction funding in order to address immediate safety hazards or health concerns. Specifies that any supplemental assistance granted to a charter school is to be provided to the chartering school district for distribution to the charter school, and the chartering district may not retain any portion of the moneys so granted.

● Allows charter schools that do not otherwise qualify for charter school capital construction funding to apply directly to the state board for financial assistance from the school construction and renovation fund for capital construction projects that will address safety hazards or health concerns at existing charter school facilities if the project did not otherwise qualify for funding from the school capital construction expenditures reserve in the contingency reserve fund. Specifies that any such financial assistance granted to a charter school is to be provided to the chartering school district for distribution to the charter school, and the chartering district may not retain any portion of the moneys so granted.

National Credentials Fee Assistance Program

For the 2003-04 budget year, eliminates funding of the national credentials fee assistance program, which requires the department to provide fee assistance to qualified persons seeking national credentials. For the 2004-05 budget year and budget years thereafter, makes the program subject to available appropriations.

State Capital Construction Settlement Agreement

For the 2003-04 state fiscal year, to meet obligations under the Giardino lawsuit, provides for a:

● $5 million appropriation from the state education fund to the school construction and renovation fund.

● $5 million appropriation from the state education fund to the school capital construction expenditures reserve fund.

Academic Growth Pilot Program

Funds the academic growth pilot program at a rate of $200,000 per budget year and specifies that the funding for the pilot program is to come from the in-year cost recovery resulting from the use of unique student identifiers.

Business Incentive Agreements

● Eliminates a school district's authority to enter into new business incentive agreements with a taxpayer who either establishes a new business facility in the district or expands an existing facility.

● Eliminates the state replacement of school district revenues lost due to business incentive agreements entered into after the effective date of this act.

● Eliminates the requirement that the Colorado economic development commission review business incentive agreements negotiated by school districts and taxpayers.

Publicity for Charter Schools

Prohibits a school district from discriminating against a charter or nonpublic school participating in the Colorado opportunity contract pilot program in publicizing the educational options available to students residing within the district, provided that the charter or nonpublic school pays for its share of the publicizing costs.

Education Grant Programs

Expands existing law addressing information for education grant program applications and allocating education grant program appropriations to BOCES who assist in preparing grant program applications to apply to state and federal education grant programs.

School Accountability Reports

Delays the delivery by the department of schools' annual accountability reports to the public schools until January 15. Eliminates the requirement that the department print reports in excess of the total number of pupils and teachers.

Appropriation - 2002-03 Budget Year

Appropriates $3 million to the contingency reserve and specifies that the amount is to be used to provide supplemental assistance to the Denver school district for the purpose of mitigating the property tax revenue loss attributable to the United Airlines bankruptcy.

Appropriation - 2003-04 Budget Year

● Appropriates $5 million from the state education fund to provide matching grants for eligible school district and charter school capital construction projects.

● Makes the following adjustments to the FY 2003-04 long bill:

● Decreases the state education fund appropriation to the department for management and administration of the academic growth pilot program by $318,635.

● Decreases the general fund appropriation to management and administration, Colorado student assessment program, by $1,000,000 (the governor lined through this general fund appropriation decrease).

● Decreases the appropriation to the department, state share of districts' total program funding, by $28,885,023 ($27,130,825 from the general fund; $1,754,198 from the state education fund).

● Decreases the state education fund appropriation to the national credential fund by $60,000.

● Decreases the state education fund appropriation to the capital construction expenditure reserve by $3,040,547.

● Decreases the state education fund appropriation to charter school capital construction by $3,040,547.

● Decreases the general fund appropriation to BOCES by $210,000.

● Adds a footnote to the long bill and an appropriation of $182,000 to the legislative council to conduct the cost of living study from moneys transferred from the department from the state share of districts' total program funding line in the FY 2003-04 long bill (the governor lined through the footnote directing the transfer of $182,000 from the department to the legislative council).

APPROVED by Governor May 22, 2003
EFFECTIVE May 22, 2003
PORTIONS VETOED May 22, 2003

S.B. 03-250 Retirement systems - merger. Authorizes a school district retirement system (merging system) to enter into an agreement to merge into another public employee retirement system (continuing system), including the public employees' retirement association. Specifies that the terms of the merger shall be binding on the governing bodies of the merging system, the school district sponsoring the merging system (school district), and the continuing system. Authorizes the terms of the merger to include additional provisions that are acceptable to the governing bodies of the merging system, the school district, and the continuing system.

Specifies that the effective date of the merger shall be January 1, 2005. Provides that on the effective date of the merger, all assets, liabilities, and obligations of the merging system shall become the assets, liabilities, and obligations of the continuing system. Specifies that the costs of the merger shall be paid on the effective date of the merger.

Allows the merging system, the school district, or the continuing system to terminate the merger on or before July 1, 2004, without cause. Allows the merger to be terminated after such date but prior to the effective date of the merger if one or more specified conditions exist.

Provides that upon the effective date of the merger, the school district shall become an affiliated employer of the continuing system and subject to the laws, rules, and other provisions governing the continuing system. Specifies that the merger shall not result in a reduction of the retirement benefits for any retiree or beneficiary receiving benefits as of the date of the merger. Specifies that members of the merging system who are not retired as of the date of the merger shall not have their benefits reduced. Allows the members to elect to receive benefits calculated under the laws and rules governing the merging system or the continuing system. Specifies that accounts of inactive participants of the merging system shall be maintained by the continuing system as separate accounts and governed by the provisions of the merging system in effect before the merger. Provides that all new employees hired after the merger shall be members of the continuing system.

Specifies that retirement benefits will not be reduced for post-retirement employment in specified circumstances with the school district or an employer of the merging system when the retiree commenced such employment before the merger.

Requires a 1st actuarial valuation to establish an estimated cost of the merger as of December 31, 2003. Requires a final actuarial valuation to be received by June 1, 2005. Specifies that a final reconciliation of the costs and funding of the merger shall be determined upon receiving the final actuarial valuation.

Provides for the employer contribution rate to be modified in a certain manner to amortize any difference between the funding ratios of the merging system and the continuing system.

Requires the continuing system to maintain specified insurance coverage for board members and employees of the merging system. Provides that staff members of the merging system shall become employees at-will of the continuing system.

Specifies the intent of the act and requirements for a person who challenges any provision of the merger agreement. Specifies procedures for transferring the assets of the merging system and certifying the consummation of the merger.

APPROVED by Governor June 5, 2003
EFFECTIVE June 5, 2003

S.B. 03-254 Closing the achievement gap - program - eligible schools - commission - appointment - cash fund. Establishes the closing the achievement gap program ("program") in the department of education ("CDE"). Makes a school eligible to participate in the program if the school has either received an academic performance rating of "unsatisfactory" or been identified by the state board of education ("state board") as having a significant achievement gap. Requires CDE to distribute to eligible schools an outline of strategies for improvement, and directs school districts to choose the strategies it will implement. Requires the state board to determine eligibility criteria for schools, and authorizes rule-making. Directs CDE to provide assistance to schools participating in the program.

Creates the closing the achievement gap commission ("commission"). Sets the membership of the commission, and directs the appointment of members by the governor and the commissioner of education. Requires written reports to the state board and the general assembly. Directs the commission to consider, at a minimum:

● Systemic educational planning;

● Best practices;

● Professional development;

● Parental involvement; and

● Program strategies.

Creates a cash fund for grants and donations to fund the commission. Repeals the commission, effective January 1, 2005.

APPROVED by Governor June 5, 2003
EFFECTIVE June 5, 2003

S.B. 03-275 FY 2003-04 budget reduction bill - school accountability reports - printing - appropriation. Eliminates the requirement that the department of education print 25% more school accountability reports than there are students and teachers at a school.

Reduces the appropriation for the 2003-04 fiscal year to the department of education for school accountability reports by $10,000.

VETOED by Governor May 22, 2003

S.B. 03-292 FY 2003-04 budget reduction bill - Colorado student assessment program - suspension of assessments - appropriation. For the 2003-04 school year, suspends the administration of the writing assessments for students in the 3rd through 10th grades, the reading and mathematics assessments for students in the 9th grade, and the curriculum-based, achievement college entrance exam for students in the 11th grade.

Delays to the spring semester of 2008 the administration of the assessment in science for students in the 5th and 10th grades.

Reduces the general fund appropriation in the long bill for the 2003-04 fiscal year to the department of education for management and administration of the Colorado student assessment program by $7,283,600.

VETOED by Governor May 1, 2003

S.B. 03-309 Writing assessments - suspension - appropriation. Suspends the administration of Colorado student assessment program examinations in writing for the 2003-04 and the 2004-05 school years. Specifies that a school district is not required to develop or administer assessments to replace the suspended assessments nor report any scores for the suspended assessments. Authorizes the department of education to modify the format of the school accountability reports to reflect the suspension of the writing assessments.

For the fiscal year beginning July 1, 2003, decreases the appropriation for the department of education, management and administration, for the Colorado student assessment program, by $4,824,600.

Specifies that the act shall not take effect if Senate Bill 03-292 becomes law.

VETOED by Governor May 22, 2003
NOTE: Senate Bill 03-292 was vetoed by the Governor on May 1, 2003.

H.B. 03-1021 Financing of charter school facilities - requirements for participation in credit enhancement programs. Makes both technical and substantive changes to the "Charter School Facilities Financing Act" as follows:

● Specifies that only qualified charter schools that have an investment grade credit rating may have bonds that rely upon the state charter school debt reserve fund issued on their behalf by the Colorado educational and cultural facilities authority (CECFA).

● Requires a qualified charter school that has such bonds issued on its behalf to simultaneously use the credit enhancement of the state's moral obligation for the bonds and to also request to participate in an existing intercept program whereby the state treasurer or, in certain circumstances, the chartering school district makes direct bond payments on behalf of the qualified charter school from moneys that the state treasurer or the chartering district would ordinarily pay to the charter school.

● Requires a qualified charter school to pay to the state treasurer for deposit into the state charter school interest savings account of the state charter school debt reserve fund a specified amount of interest rate savings on bonds issued on its behalf by CECFA that result from more favorable financing terms that are attributable to the existence of the state charter school debt reserve fund, the intercept program, and an existing statutory provision that imposes a moral obligation on the state to replenish qualified charter school debt service reserve funds, and authorizes the state treasurer to charge a fee to the charter school to defray administrative costs.

● Modifies existing definitions of "qualified charter school", "qualified charter school bonds", and "qualified charter school debt service reserve fund requirement".

● Clarifies that the maximum outstanding principal amount of bonds that may be enhanced by the state's moral obligation and the qualified charter school debt service reserve funds is $200 million.

● Covenants with the purchasers of qualified charter school bonds that the state will not repeal, revoke, or rescind any statutory provisions that would adversely affect the rights and remedies available to the bond purchasers.

● Makes a $20,000 appropriation from the state charter school interest savings account of the state charter school debt reserve fund to the state treasurer.

APPROVED by Governor May 21, 2003
EFFECTIVE May 21, 2003

H.B. 03-1032 Interest-free loan program - school district board of education - approval of loan. On March 25, 2003, requires a school district board of education ("board") to approve the school district's application to participate in the interest-free loan program. For a month in which a school district requests an interest-free loan, requires the school district's superintendent and chief financial officer to present the loan request to the school district's board for prior approval. If the board approves the loan, directs the chief financial officer and the district superintendent to request the loan from the state treasurer and certify the amount of the loan approved by the school district board.

APPROVED by Governor March 25, 2003
EFFECTIVE March 25, 2003

H.B. 03-1083 Transfer rules - extracurricular activities. Repeals the requirement that transfer rules shall not prohibit a student's participation in extracurricular activities if the student enrolls in the transfer school within 15 days after the school year begins and prior to participating in the activity during the same school year at the prior school of enrollment.

BECAME LAW April 22, 2003
EFFECTIVE April 22, 2003

H.B. 03-1087 Open enrollment - policies and procedures - priority for students who rate unsatisfactory and attend an unsatisfactory school. Directs school districts to consider adopting a policy that a student with a proficiency rating of unsatisfactory in at least one academic area who attends an unsatisfactory school and who is applying for enrollment under open enrollment be given priority over all other applicants for open enrollment purposes.

APPROVED by Governor April 7, 2003
EFFECTIVE July 1, 2003

H.B. 03-1114 Educator licensure - criminal history record checks - teacher in residence authorization - appropriation. Requires the department of education ("department") to deny, annul, suspend, or revoke an educator license, authorization, or endorsement for:

● A conviction for felony child abuse, a crime of violence, a felony offense involving unlawful sexual behavior, a felony involving domestic violence, or a similar offense in another jurisdiction;

● A conviction for indecent exposure;

● An adjudication for a juvenile offense that would constitute unlawful sexual behavior if committed by an adult; or

● Failure to submit fingerprints within 30 days after a request from the department, when the department has good cause to believe that the educator has been convicted of any felony or misdemeanor.

Permits the department to deny, annul, suspend, or revoke an educator license, authorization, or endorsement for:

● A conviction for a specified misdemeanor involving sexual assault, unlawful sexual conduct, sexual assault on a client by a psychotherapist, child abuse, sexual exploitation of children, or domestic violence and the conviction is for a second or subsequent conviction for the same offense;

● A conviction for contributing to the delinquency of a minor;

● A conviction for a misdemeanor violation involving the illegal sale of controlled substances;

● A conviction for a felony that would not require an automatic denial, annulment, suspension, or revocation;

● An adjudication for a juvenile offense that would constitute physical assault, battery, or a drug-related offense if committed by an adult, if the offense was committed within ten years prior to application for licensure; or

● Forfeiture of any bail, bond, or other security deposited to secure the appearance by the applicant or holder who is charged with having committed certain felonies or misdemeanors.

Permits the state to annul, suspend, or revoke an educator license, certificate, endorsement, or authorization if the educator is convicted of an offense that would ordinarily require annulment, suspension, or revocation if the educator held a license prior to June 6, 1991, unless the educator has already been afforded the relevant due process rights.

Repeals the existing prohibition against requiring fingerprints for a professional educator license, renewal of a license, or an authorization. Clarifies the use of fingerprints in the application process for educator licensure. Permits the department to use the ICON system at the state judicial department, the federal bureau of investigation, and other available sources when investigating the criminal history of educators. Clarifies that the state board of education may not waive any provisions of law relating to criminal history record checks of school personnel. Allows the department to require an educator to submit fingerprints when the department finds good cause to believe the educator has been convicted of a felony or misdemeanor, other than a misdemeanor traffic offense or traffic infraction.

Directs the court to notify the department if a person who holds a teacher license, or who is a current or former employee of a school district or a charter school, is convicted of a felony or is convicted of incest and the victim is younger than 18 years of age. Requires the department to notify a school district of a person's conviction for a felony or a certain misdemeanor. Permits the department to grant a new type of authorization for a person employed as a teacher in a teacher-in-residence program. Allows a conviction of a felony or other offense involving moral turpitude to be the sole basis for denying an educator license or authorization.

For fiscal year 2003-04, appropriates $327,467 from the educator licensure cash fund to the department of education for allocation to the office of professional services. Appropriates $235,800 to the department of public safety for allocation to the Colorado bureau of investigation, from the department of education out of appropriations made by the act.

APPROVED by Governor June 5, 2003
EFFECTIVE June 5, 2003

H.B. 03-1127 Administrators and teachers - civil immunity - prohibit false reporting. Creates the "Teacher and School Administrator Protection Act" to grant immunity to an educational entity and its employees:

● For an action taken pertaining to students, unless the action is in violation of a statute, rule, or policy; and

● For making certain reports consistent with federal law.

Makes it a misdemeanor for a person 18 years of age or older to intentionally make a false accusation of criminal activity against an employee of an educational entity. Specifies penalties a court may impose on a public school student who is at least 10 years of age, but younger than 18 years of age, who makes a false accusation of criminal activity against an employee of an educational entity.

In a civil action against an educational entity or its employee, allows the court to award attorney fees and costs to the educational entity or its employee if the court finds the defendant is immune from suit or liability under this act. Specifies that a policy of insurance indemnifying an educational entity against liability for damages is not a waiver of a defense otherwise available to the educational entity or its employee. Specifies that the provisions of the act are supplemental to the "Colorado Governmental Immunity Act" ("CGIA"), that any suit that is barred under the "CGIA" is barred under this act, and that if there is a conflict between this act and the "CGIA", the court shall resolve the conflict in the manner that provides the most protection to the educational entity or its employee.

APPROVED by Governor April 18, 2003
EFFECTIVE August 6, 2003
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

H.B. 03-1160 Opportunity contract pilot program - establishment - eligible children - application process - participating nonpublic schools - appeal - notification - opportunity contracts - financing - payments to parents - audit - evaluation. Establishes the "Colorado Opportunity Contract Pilot Program" ("pilot program"), which specifies the procedures for a school district to provide financial assistance for an eligible child to attend a participating nonpublic school under the terms of an opportunity contract between the child's parent and the school.

Requires a school district that had 8 or more schools that received an academic performance rating of "low" or "unsatisfactory" in the 2001-02 school year and continues to operate those schools in the 2003-04 school year to participate in the pilot program. Permits any other school district to voluntarily participate in the pilot program after adoption of a favorable resolution of the school district board of education. Limits the eligibility for a child to participate in the pilot program to a child entering or enrolled in kindergarten or in one of grades one through 12 who is eligible for free or reduced-cost school lunch. Specifies additional criteria for eligibility.

Directs a parent of a child who seeks to participate in the pilot program to apply on or before January 1 of the school year that precedes the year the child intends to participate. Directs a school district to notify, by February 15, each parent of a child that meets the eligibility criteria. Clarifies that an eligible child remains eligible to participate in the pilot program so long as the child attends a participating nonpublic school. Requires an eligible child to provide annual notification of intent to attend a participating nonpublic school.

Caps the number of children participating in the pilot program at 1% of a school district's enrollment for the first school year of the pilot program; 2% for the second school year; 4% for the third school year; and 6% for the fourth school year and for subsequent school years. Directs a school district to meet the cap by giving a priority to eligible children who participated in the pilot program the previous year and to siblings of selected children and by use of a lottery. Permits a parent to withdraw an eligible child from a participating nonpublic school at any time.

Specifies the actions that constitute a breach of the opportunity contract and relinquishment of the payments. Directs a school district to fill any resulting spaces in the pilot program by using a weekly lottery. Prohibits a home-schooled student or a nonpublic school student from participating in the pilot program the following school year. Requires a parent of an eligible child to apply to a participating nonpublic school between April 1 and June 1 of the school year in which the child is deemed eligible for participation in the pilot program. Directs the nonpublic school to notify the parent within 15 days whether the eligible child is accepted for admission.

Specifies the criteria to be met by a nonpublic school to qualify as a participating nonpublic school in the pilot program. Requires a participating nonpublic school operating less than 3 years to obtain a bond or surety. Permits a participating nonpublic school to adjust the number of spaces in the pilot program at any time; except that it cannot decrease the number spaces between March 1 and August 15. Permits a nonpublic school to appeal a denial of participation in the pilot program to the state board of education. Requires a school district to provide parents information each year about the pilot program and participating nonpublic schools.

Directs an eligible child's parent and a participating nonpublic school to enter into an opportunity contract. Specifies the required contents of the contract. Permits the school district to count an eligible child attending a participating nonpublic school in its pupil enrollment for purposes of the "Public School Finance Act of 1994".

Requires participating nonpublic schools to report annually the number of children participating in the pilot program. Specifies the amount paid by the school district to the parent of an eligible child enrolled in the pilot program. Directs the school district to pay the amount in 4 installments. Requires the school district to issue a check for each payment in the name of the parent, and requires the parent to endorse the check over to the participating nonpublic school.

Requires the state auditor to conduct a performance and financial audit of the pilot program and to report findings on or before January 1, 2008. Requires a school district, on or before January 1, 2008, to evaluate the academic performance of children participating in the pilot program and to report certain information to the general assembly.

APPROVED by Governor April 16, 2003
EFFECTIVE April 16, 2003

H.B. 03-1172 School board policies - recommending use of psychotropic drug - behavior tests. Requires each school district board of education to adopt a policy prohibiting school personnel from recommending or requiring the use of a psychotropic drug by a student. Prohibits school personnel from testing a student's behavior without written permission after disclosure of the disposition of the results of the test.

APPROVED by Governor June 5, 2003
EFFECTIVE June 5, 2003

H.B. 03-1173 Family literacy education grant program - federal funding - annual review. States the general assembly's intent that the department of education, for purposes of Colorado family literacy programs, actively pursue all federal moneys for family literacy available through the federal "No Child Left Behind Act of 2001" and the federal "Workforce Investment Act of 1998". Requires an annual review and determination by the state treasurer of whether sufficient moneys have been credited to the family literacy education fund.

APPROVED by Governor June 3, 2003
EFFECTIVE June 3, 2003

H.B. 03-1193 Boards of cooperative services - certain boards - appointment of members of the public. Permits the participating boards of a board of cooperative services ("BOCES") consisting of a single school district and a single postsecondary institution to appoint up to 4 members of the BOCES from the public at large.

APPROVED by Governor March 20, 2003
EFFECTIVE August 6, 2003
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

H.B. 03-1327 Public employees retirement association - post-retirement employment - critical shortage employees. Extends the repeal dates on statutory provisions that allow:

● School districts to declare critical shortages of nonlicensed employees; and

● Retirees of the public employees' retirement association (PERA) or a school district retirement plan to work in nonlicensed school positions in excess of a certain number of hours without reducing the retirees' retirement benefits.

In order to declare a critical shortage of nonlicensed employees, requires a school district to solicit applications through widely distributed newspapers. Prohibits a school district from declaring a critical shortage if it has offered a retirement incentive plan during the current calendar year of either of the 2 previous calendar years. Provides that employees shall be eligible to participate in a school district's health plan while employed as a nonlicensed employee. Specifies that a PERA retiree who is employed in a position for which a critical shortage has been declared shall not receive a PERA health care premium subsidy.

APPROVED by Governor June 3, 2003
EFFECTIVE June 3, 2003

H.B. 03-1333 School district - board of education - powers - return of library resources. Permits a school district board of education to require a student to replace or return library resources by withholding the student's diploma, transcript, or grades at the end of a semester or school year, or by refusing to allow the student to participate in graduation or continuation ceremonies.

APPROVED by Governor May 2, 2003
EFFECTIVE May 2, 2003

H.B. 03-1368 Honor of flag - pledge of allegiance - required recitation - exemptions. Requires the teachers and students in each classroom in each public school in the state to recite aloud each day the pledge of allegiance to the flag of the United States of America ("pledge").

Exempts a teacher or student who objects on religious grounds; a student whose parent or guardian files a written objection with the school principal; and a student or teacher who is not a United States citizen.

APPROVED by Governor June 3, 2003
EFFECTIVE August 6, 2003
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

H.B. 03-1369 Colorado Opportunity Contract Pilot Program - eligibility criteria - enrollment in public school - literacy assessment. Clarifies that, for a child entering or enrolled in one of grades 1 through 3 to be eligible to participate in the Colorado Opportunity Contract Pilot Program ("program"), the child must have been continuously enrolled in and attending a public school during the previous school year. Creates an additional eligibility criterion to allow a child in one of grades 1 through 3 to participate in the program if the child has been assessed at a level below the level established by the state for reading readiness or literacy and reading comprehension for the child's grade level.

APPROVED by Governor June 5, 2003
EFFECTIVE June 5, 2003