HOUSE BILL No. 1386 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 20-20-44; IC 20-25.7; IC 20-30-16. Synopsis: Competency based education. Establishes the competency based education pilot program (pilot program). Provides that the department of education may award grants under the pilot program for competency based education programs from the innovation network school grant fund. Makes conforming amendments. Effective: July1,2017. Behning January 17, 2017, read first time and referred to Committee on Education. Introduced Version 2017 IN 1386—LS 7318/DI 116  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Introduced First Regular Session of the 120th General Assembly (2017) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2016 Regular Session of the General Assembly. HOUSE BILL No. 1386 A BILL FOR AN ACT to amend the Indiana Code concerning education. Be it enacted by the General Assembly of the State of Indiana: SECTION 1. IC 20-20-44 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2017]: Chapter 44. Competency Based Education Pilot Program Sec. 1. As used in this chapter, "competency based education" means a system under which a student advances to higher levels of learning when the student demonstrates competency in concepts and skills regardless of time, place, or pace. Sec. 2. As used in this chapter, "program" refers to the competency based education pilot program established by section 3 of this chapter. Sec. 3. (a) The competency based education pilot program is established to provide grants to schools for designing and implementing competency based education models for the education of the school's students. (b) The program shall be administered by the department. The department may award program grants from the innovation 2017 IN 1386—LS 7318/DI 116  2 1 network school grant fund under IC 20-25.7-7-1. 2 Sec. 4. (a) To participate in the program, a school corporation, 3 public school, or consortium of school corporations or public 4 schools must submit an application to the department not later 5 than April 1, 2018, on a form and in a manner prescribed by the 6 department. 7 (b) Not later than July 1, 2018, the department shall select a 8 total of not more than five (5) school corporations, public schools, 9 or consortiums of school corporations or public schools to 10 participate in the program. The department shall require a school 11 corporation or public school to agree to an annual performance 12 review conducted by the department as a condition of participating 13 in the program. 14 (c) To participate in the program, an applicant must implement 15 a competency based education model throughout at least one (1) 16 school. However, the applicant may phase in implementation of the 17 competency based education model at the school over a five (5) 18 year period. 19 Sec. 5. The competency based education offered by a 20 participating school corporation or public school must satisfy all 21 of the following requirements: 22 (1) Students shall advance upon mastery of the subject matter. 23 (2) Standards must be broken down into competencies that 24 include clear, measurable, transferable learning objectives 25 that empower students. 26 (3) Assessments must focus on evaluating skills and not 27 memorization. 28 (4) Students must receive timely, differentiated support based 29 on their individual learning needs. 30 (5) Learning outcomes must emphasize competencies that 31 include application and creation of knowledge, along with the 32 development of work-ready skills. 33 (6) The competency based education program must 34 incorporate partnerships with postsecondary institutions and 35 community organizations, including members of industry. 36 Sec. 6. A participating school corporation or public school 37 remains subject to all accountability requirements in state and 38 federal law that are applicable to the school corporation or public 39 school. 40 Sec. 7. If a school corporation or public school is selected to 41 participate in the program or is selected to participate as part of a 42 consortium under section 4 of this chapter, each student enrolled 2017 IN 1386—LS 7318/DI 116  3 1 in the school corporation or public school is considered, for 2 purposes of calculating state tuition support under IC 20-43, to be 3 a full-time equivalent student in the school corporation or public 4 school while participating in the competency based education. 5 Sec. 8. (a) Not later than January 31, 2019, the department shall 6 post on its Internet web site a preliminary report that examines the 7 planning of competency based education in the school 8 corporations, public schools, or consortiums selected to participate 9 in the program under section 4 of this chapter. 10 (b) Not later than December 31, 2021, the department shall post 11 on its Internet web site a report that includes all of the following: 12 (1) A review of the competency based education offered by the 13 school corporations, public schools, or consortiums selected 14 to participate in the program under section 4 of this chapter. 15 (2) An evaluation of the implementation of competency based 16 education by the school corporations, public schools, or 17 consortiums selected to participate in the program and of 18 student outcomes resulting from the competency based 19 education. 20 (3) A determination of the feasibility of a funding model that 21 reflects student achievement outcomes as demonstrated 22 through competency based education. 23 Sec. 9. The state board shall adopt rules under IC 4-22-2 24 necessary to implement this chapter. 25 SECTION 2. IC 20-25.7-4-3, AS AMENDED BY P.L.118-2016, 26 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 27 JULY 1, 2017]: Sec. 3. (a) Two (2) or more teachers and: 28 (1) a principal; 29 (2) a superintendent; or 30 (3) any combination of individuals described in either subdivision 31 (1) or (2); 32 who are currently employed by a school corporation may submit a plan 33 to a board for the establishment of an innovation network school. 34 (b) In considering whether to approve a plan submitted under this 35 section, the board may consider innovations in the following areas: 36 37 38 39 40 41 42 (1) Whether the plan: (A) increases teacher salaries; (B) achieves financial sustainability for teacher salary increases under clause (A) by reallocating other funds, including local, private, state, or federal funds; and (C) develops measures for determining how the innovations or teacher empowerment: IN 1386—LS 7318/DI 116 2017  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 4 (i) improves the quality of classroom instruction; and (ii) increases the attractiveness of teaching. (2) Class size and schedule. (3) Length of school day or year. (4) Use of technology to deliver highly effective instruction. (5) Staffing models for teachers, paraprofessionals, and administrators. (6) Teacher recruitment, training, preparation, and professional development. (7) School governance and the roles, responsibilities, and expectations of principals in innovation network schools. (8) Preparation and counseling of students for transition to higher education or careers. (9) Whether the plan incorporates a school model that uses job redesign or technology to extend the reach of effective or highly effective teachers to more students for more pay within budget. (10) Innovations in conjunction with the competency based education pilot program established under IC 20-20-44. (c) A board that approves a plan under this section may request a grant from the state board under IC 20-25.7-7 for costs associated with the development and implementation of a plan developed under this section. The board shall apply for the grant from the state board in a manner prescribed by the state board. SECTION 3. IC 20-25.7-7-1, AS ADDED BY P.L.214-2015, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2017]: Sec. 1. (a) The innovation network school grant fund is established to provide grants to: (1) an innovation network school established under IC 20-25.7-4-3; or (2) an innovation network school that participates in the career pathways pilot program under IC 20-25.7-6; or (3) a school that participates in the competency based education pilot program under IC 20-20-44. (b) The fund shall be administered by the state board. (c) The fund consists of the following: (1) Appropriations made by the general assembly. (2) Gifts, grants, or donations. (3) Interest accruing from investment of money in the fund. (d) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. (e) Interest that accrues from investments of the fund shall be 2017 IN 1386—LS 7318/DI 116  5 1 deposited in the fund. 2 SECTION 4. IC 20-30-16 IS ADDED TO THE INDIANA CODE 3 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 4 JULY 1, 2017]: 5 Chapter 16. Credit for Competency Based Education 6 Sec. 1. This chapter applies to credit based upon a competency 7 based education (as defined in IC 20-20-44-1). 8 Sec. 2. A school corporation or charter school shall grant 9 required and elective credit toward a student's diploma for 10 competency based education if the student demonstrates defined 11 levels of proficiency or mastery of Indiana academic standards. 12 Academic credit may be awarded if the student: 13 14 15 16 17 18 19 20 21 22 (1) successfully completes classroom or equivalent work designed to measure proficiency or mastery of identified standards; (2) successfully passes an appropriate exam designed to measure proficiency or mastery of identified standards; (3) provides a collection of work or other assessment evidence that demonstrates proficiency or mastery of identified standards; or (4) demonstrates proficiency or mastery of identified standards in a manner provided by the state board. 2017 IN 1386—LS 7318/DI 116