Second Regular Session Seventy-third General Assembly STATE OF COLORADO INTRODUCED LLS NO. 22-0403.01 Brita Darling x2241 HOUSE BILL 22-1202 House Committees Senate Committees Education A BILL FOR AN ACT C ONCERNING THE CREATION OF A NEW MEASURE IN THE PUBLIC101 SCHOOL FUNDING FORMULA FOR IDENTIFYING AT -RISK102 STUDENTS, AND, IN CONNECTION THEREWITH , CREATING A103 WORKING GROUP IN THE DEPARTMENT OF EDUCATION TO104 IMPLEMENT THE NEW MEASURE IN A FUTURE BUDGET YEAR .105 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Legislative Interim Committee on School Finance. The bill identifies a new at-risk measure to identify students who are at risk of HOUSE SPONSORSHIP Herod and McCluskie, Kipp, Larson SENATE SPONSORSHIP Zenzinger and Coleman, Bridges, Kirkmeyer, Lundeen Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. below-average academic outcomes because of socioeconomic disadvantage or poverty in order to allocate resources through the state's public school funding formula to serve those students. The new at-risk measure will include: ! The percentage of students certified as eligible for the school lunch program based on documentation of benefit receipt or categorical eligibility, supplemented by the expansion of direct certification to participants in the medical assistance program and the children's basic health plan; and ! A neighborhood socioeconomic-status index that weights student needs based on socioeconomic-status index neighborhood factors linked to each student's census block group. The commissioner of education (commissioner) shall convene a working group to prepare for the implementation of the new at-risk measure in the 2023-24 budget year. The bill specifies the membership of the working group. The bill includes issues that the working group may consider in constructing and implementing the new at-risk measure, including collecting necessary data, constructing a neighborhood socioeconomic-status index linked to students' addresses, and testing the at-risk measure with actual student data, if available. The commissioner shall report findings and recommendations for the construction and implementation of the new at-risk measure to the legislative interim committee on school finance, the joint budget committee, and the education committees of the general assembly. The bill requires the department of education to apply to the United States department of agriculture to obtain authorization for direct certification of students participating in the medical assistance program and the children's basic health plan. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add 22-54-104.6 as2 follows:3 22-54-104.6. Implementation of at-risk measure - working4 group - creation - report - legislative declaration - definitions - repeal.5 (1) (a) T HE GENERAL ASSEMBLY FINDS AND DECLARES THAT6 IMPLEMENTING A NEW AT-RISK MEASURE FOR IDENTIFYING STUDENTS WHO7 HB22-1202-2- ARE AT RISK OF BELOW-AVERAGE ACADEMIC PERFORMANCE BECAUSE OF1 SOCIOECONOMIC DISADVANTAGES OR POVERTY WILL BENEFIT COLORADO2 STUDENTS BY:3 (I) E NSURING THAT PUBLIC SCHOOLS ARE ABLE TO PARTICIPATE IN4 UNIVERSAL FREE MEALS PROGRAMS AND REDUCING THE PAPERWORK AND5 ADMINISTRATIVE BURDEN ON PUBLIC SCHOOLS PARTICIPATING IN THOSE6 PROGRAMS;7 (II) I DENTIFYING AT-RISK STUDENTS DIRECTLY THROUGH THEIR8 PARTICIPATION IN CERTAIN PUBLIC BENEFIT PROGRAMS WITHOUT THE9 NEED TO COLLECT FORMS OR OTHER VERIFICATION OF ELIGIBILITY , WHICH10 OFTEN LEADS TO THE UNDERCOUNTING OF STUDENTS IN THE PUBLIC11 SCHOOLS THAT NEED RESOURCES TO SERVE THESE STUDENTS ; AND12 (III) R ECOGNIZING FACTORS BEYOND HOUSEHOLD INCOME THAT13 PLACE A STUDENT AT RISK OF BELOW-AVERAGE ACADEMIC PERFORMANCE .14 (b) T HEREFORE, IT IS THE INTENT OF THE GENERAL ASSEMBLY TO15 CREATE A WORKING GROUP CONVENED BY THE COMMISSIONER OF16 EDUCATION TO DETERMINE HOW TO CONSTRUCT AND IMPLEMENT THE NEW17 AT-RISK MEASURE FOR USE IN THE STATE 'S PUBLIC SCHOOL FUNDING18 FORMULA.19 (2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE20 REQUIRES:21 (a) "C HILDREN'S BASIC HEALTH PLAN" HAS THE SAME MEANING AS22 SET FORTH IN SECTION 25.5-8-103.23 (b) "C OMMISSIONER" MEANS THE COMMISSIONER OF EDUCATION24 APPOINTED PURSUANT TO SECTION 1 OF ARTICLE IX OF THE STATE25 CONSTITUTION.26 (c) "I DENTIFIED STUDENT PERCENTAGE " MEANS THE PERCENTAGE27 HB22-1202 -3- OF A DISTRICT'S OR INSTITUTE CHARTER SCHOOL'S STUDENT ENROLLMENT1 WHO ARE CERTIFIED AS ELIGIBLE FOR FREE MEALS UNDER THE SCHOOL2 LUNCH PROGRAM BASED ON DOCUMENTATION OF BENEFIT RECEIPT OR3 CATEGORICAL ELIGIBILITY AS DESCRIBED IN 7 CFR 245.6, OR ANY4 SUCCESSOR REGULATIONS.5 (d) "M EDICAID" HAS THE SAME MEANING AS "MEDICAL6 ASSISTANCE" AS SET FORTH IN SECTION 25.5-4-103.7 (e) "S CHOOL LUNCH PROGRAM " MEANS THE FEDERAL "RICHARD B.8 R USSELL NATIONAL SCHOOL LUNCH ACT" CREATED IN 42 U.S.C. SEC.9 1751, ET SEQ.10 (3) B EGINNING IN THE 2023-24 BUDGET YEAR, THERE IS CREATED11 A NEW AT-RISK MEASURE IN THE PUBLIC SCHOOL FUNDING FORMULA FOR12 IDENTIFYING STUDENTS WHO ARE AT RISK OF BELOW -AVERAGE ACADEMIC13 OUTCOMES BECAUSE OF SOCIOECONOMIC DISADVANTAGE OR POVERTY .14 T HE NEW AT-RISK MEASURE REPLACES THE AT-RISK MEASURE IN EFFECT15 FOR THE 2022-23 BUDGET YEAR. THE NEW AT-RISK MEASURE IS DESIGNED16 TO ALLOCATE FINANCIAL RESOURCES TO PUBLIC SCHOOLS TO SERVE THE17 NEEDS OF AT-RISK STUDENTS. THE NEW AT-RISK MEASURE INCLUDES:18 (a) A DISTRICT'S OR INSTITUTE CHARTER SCHOOL 'S IDENTIFIED19 STUDENT PERCENTAGE , SUPPLEMENTED BY STUDENTS IDENTIFIED20 THROUGH COLORADO'S PARTICIPATION IN THE DEMONSTRATION PROJECT21 OPERATED PURSUANT TO 42 U.S.C. SEC. 1758 (b)(15) FOR DIRECT22 CERTIFICATION FOR CHILDREN RECEIVING BENEFITS THROUGH MEDICAID23 AND THE CHILDREN'S BASIC HEALTH PLAN; AND24 (b) S TUDENT NEEDS THAT ARE WEIGHTED BASED ON AT LEAST FIVE25 SOCIOECONOMIC-STATUS NEIGHBORHOOD FACTORS , LINKED TO EACH26 STUDENT'S CENSUS BLOCK GROUP.27 HB22-1202 -4- (4) ON OR BEFORE AUGUST 15, 2022, THE COMMISSIONER SHALL1 CONVENE A WORKING GROUP TO PREPARE FOR THE IMPLEMENTATION IN2 THE 2023-24 BUDGET YEAR OF THE NEW AT-RISK MEASURE CREATED IN3 SUBSECTION (3) OF THIS SECTION.4 (5) (a) T HE WORKING GROUP CONSISTS OF STAFF OF THE5 DEPARTMENTS OF HEALTH CARE POLICY AND FINANCING AND HUMAN6 SERVICES, APPOINTED BY THE EXECUTIVE DIRECTORS OF THOSE7 DEPARTMENTS IN CONSULTATION WITH THE COMMISSIONER , AND OTHER8 MEMBERS APPOINTED BY THE COMMISSIONER PURSUANT TO SUBSECTION9 (5)(b) OF THIS SECTION. EACH APPOINTING AUTHORITY SHALL APPOINT10 WORKING GROUP MEMBERS ON OR BEFORE AUGUST 1, 2022.11 (b) T HE COMMISSIONER SHALL APPOINT MEMBERS TO THE12 WORKING GROUP TO PROVIDE REPRESENTATION FOR THE FOLLOWING13 GROUPS:14 (I) S TAFF OF THE DEPARTMENT OF EDUCATION ;15 (II) S TAFF OF THE STATE CHARTER SCHOOL INSTITUTE ;16 (III) D ISTRICT CHIEF FINANCIAL OFFICERS OR SCHOOL FI NANCE17 DIRECTORS;18 (IV) S UPERINTENDENTS OF DISTRICTS;19 (V) S CHOOL PRINCIPALS AND DIRECTORS OF CHARTER SCHOOLS ;20 (VI) S CHOOL SOCIAL WORKERS OR NURSES ;21 (VII) C HILD WELFARE EDUCATION LIAISONS ;22 (VIII) T HE EDUCATION DATA ADVISORY COMMITTEE CREATED IN23 SECTION 22-2-304;24 (IX) A STATEWIDE ORGANIZATION THAT REPRESENTS EDUCATORS ;25 (X) A STATEWIDE ORGANIZATION THAT REPRESENTS SCHOOL26 DISTRICT BOARDS OF EDUCATION;27 HB22-1202 -5- (XI) A STATEWIDE ADVOCACY GROUP FOR CHARTER SCHOOLS ;1 (XII) A N ADVOCACY ORGANIZATION THAT REPRESENTS RURAL2 DISTRICTS;3 (XIII) A DVOCACY GROUPS FOR CHILDREN IN POVERTY ;4 (XIV) ADVOCACY GROUPS WORKING TO END HUNGER IN5 C OLORADO; AND6 (XV) A NY OTHER GROUPS WITH RELEVANT QUALIFICATIONS OR7 EXPERTISE.8 (6) I N APPOINTING MEMBERS TO THE WORKING GROUP , THE9 COMMISSIONER SHALL ENSURE , TO THE EXTENT PRACTICABLE, THAT THE10 MEMBERSHIP REFLECTS THE GEOGRAPHIC DIVERSITY OF THE STATE ,11 INCLUDING MEMBERS FROM RURAL , URBAN, AND SUBURBAN DISTRICTS12 AND CHARTER SCHOOLS, AS WELL AS LARGE AND SMALL DISTRICTS . THE13 COMMISSIONER SHALL ALSO ENSURE REPRESENTATION FROM DISTRICTS14 THAT SERVE A HIGH NUMBER OF AT-RISK STUDENTS UNDER THE CURRENT15 SCHOOL FUNDING FORMULA .16 (7) T HE COMMISSIONER, OR A MEMBER APPOINTED BY THE17 COMMISSIONER, SHALL SERVE AS CHAIR OF THE WORKING GROUP .18 M EMBERS OF THE WORKING GROUP SERVE WITHOUT COMPENSATION AND19 WITHOUT REIMBURSEMENT FOR EXPENSES .20 (8) T HE COMMISSIONER, IN CONSULTATION WITH THE EXECUTIVE21 DIRECTORS OF THE DEPARTMENTS OF HEALTH CARE POLICY AND22 FINANCING AND HUMAN SERVICES , MAY FORM ISSUE SUBGROUPS ,23 CONSISTING OF WORKING GROUP MEMBERS AND OTHERS WITH RELEVANT24 EXPERIENCE OR EXPERTISE, TO CONSIDER THE ISSUES ADDRESSED BY THE25 WORKING GROUP.26 (9) T HE WORKING GROUP SHALL ADDRESS ISSUES CONCERNING THE27 HB22-1202 -6- CONSTRUCTION AND IMPLEMENTATION OF THE NEW AT -RISK MEASURE1 CREATED IN SUBSECTION (3) OF THIS SECTION. AMONG OTHER2 CONSIDERATIONS, THE CONSTRUCTION AND IMPLEMENTATION OF THE NEW3 AT-RISK MEASURE MAY INCLUDE:4 (a) C OLLECTING THE NECESSARY DATA TO IMPLEMENT THE NEW5 AT-RISK MEASURE, WHICH MAY INCLUDE CONSIDERATION OF A SURVEY OF6 AVAILABLE DATA, THE LEVEL AT WHICH DATA IS COLLECTED , DATA7 SHARING AND DATA LINKS, STUDENT DATA PRIVACY, AND MINIMIZING THE8 BURDEN OF DATA COLLECTION ;9 (b) D EVELOPING THE NEIGHBORHOOD SOCIOECONOMIC -STATUS10 INDEX, INCLUDING THE DETERMINATION OF FIVE OR MORE INDEX FACTORS ,11 WHICH MAY INCLUDE MEDIAN HOUSEHOLD INCOME , HOMEOWNERSHIP12 RATE, THE PERCENTAGE OF ADULTS TWENTY -FIVE YEARS OF AGE OR OLDER13 WITH A BACHELOR'S DEGREE OR HIGHER, THE PERCENTAGE OF CHILDREN14 WHO ARE FOSTERED OR RAISED BY A NONPARENTAL RELATIVE , OR THE15 PERCENTAGE OF HOUSEHOLDS WHERE A NON -ENGLISH LANGUAGE IS16 SPOKEN;17 (c) O NCE CENSUS BLOCKS ARE ASSIGNED A18 SOCIOECONOMIC-STATUS INDEX VALUE, DETERMINING HOW A STUDENT'S19 NEIGHBORHOOD SOCIOECONOMIC -STATUS INDEX VALUE SHOULD BE20 INCORPORATED INTO THE AT-RISK MEASURE AND HOW IT WILL IMPACT21 STUDENTS IDENTIFIED AS PART OF THE DISTRICT'S OR INSTITUTE CHARTER22 SCHOOL'S IDENTIFIED STUDENT PERCENTAGE;23 (d) D ETERMINING THE COMPOSITION OF AT-RISK FACTOR FUNDING24 BASED ON THE IDENTIFICATION OF STUDENTS THROUGH THE NEW AT -RISK25 MEASURE AND ENSURING THAT AT -RISK FACTOR FUNDING IS EQUITABLY26 DISTRIBUTED TO IMPROVE ACADEMIC OUTCOMES FOR IDENTIFIED27 HB22-1202 -7- STUDENTS;1 (e) D ETERMINING HOW DISTRICTS AND INSTITUTE CHARTER2 SCHOOLS WILL DEMONSTRATE THAT AT -RISK FUNDING IS BEING EXPENDED3 TO SERVE STUDENTS IDENTIFIED THROUGH THE NEW AT -RISK MEASURE4 AND RESULTING AT-RISK FACTOR FUNDING;5 (f) D ETERMINING THE PROCESS FOR IDENTIFYING STUDENTS6 DURING THE FIRST YEAR OF IMPLEMENTATION AND THE DESIGN AND7 LENGTH OF A HOLD-HARMLESS PROVISION FOR DISTRICTS AND CHARTER8 SCHOOLS;9 (g) C ONDUCTING PRE-IMPLEMENTATION MODELING AND TESTING10 USING ACTUAL STUDENT DATA FOR EACH DISTRICT AND CHARTER SCHOOL ,11 IF AVAILABLE;12 (h) C ONSIDERING THE IMPACT OF THE NEW AT -RISK MEASURE ON13 OTHER PROGRAMS THAT RELY ON OR REFERENCE THE IDENTIFICATION OF14 AT-RISK STUDENTS PURSUANT TO THIS ARTICLE 54; AND15 (i) A NY OTHER ISSUES DEEMED RELEVANT BY THE COMMISSIONER .16 (10) NOT LATER THAN JANUARY 31, 2023, THE COMMISSIONER17 SHALL SUBMIT A REPORT TO THE LEGISLATIVE INTERIM COMMITTEE ON18 SCHOOL FINANCE, THE JOINT BUDGET COMMITTEE, AND THE EDUCATION19 COMMITTEES OF THE HOUSE OF REPRESENTATIVES AND THE SENATE , OR20 ANY SUCCESSOR COMMITTEES , INCLUDING:21 (a) A SUMMARY OF THE PROGRESS OF THE WORKING GROUP IN22 RESOLVING ISSUES CONCERNING THE COMPOSITION AND IMPLEMENTATION23 OF THE NEW AT-RISK MEASURE AND AT-RISK FACTOR FUNDING;24 (b) F INDINGS AND RECOMMENDATIONS OF THE WORKING GROUP25 FOR IMPLEMENTATION OF THE NEW AT -RISK MEASURE FOR THE 2023-2426 BUDGET YEAR, INCLUDING RECOMMENDATIONS FOR ANY LEGISLATION27 HB22-1202 -8- NECESSARY TO IMPLEMENT THE NEW AT -RISK MEASURE, AS WELL AS1 FINANCIAL RESOURCES NEEDED TO ADMINISTER THE NEW AT -RISK2 MEASURE;3 (c) A SUMMARY OF ANY FINANCIAL MODELING OF THE NEW4 AT-RISK MEASURE FOR INDIVIDUAL DISTRICTS OR CHARTER SCHOOLS , IF5 AVAILABLE; AND6 (d) A N ESTIMATE OF THE IMPACT OF THE NEW AT -RISK MEASURE7 ON THE COST OF TOTAL PROGRAM FUNDING .8 (11) T HE DEPARTMENT OF EDUCATION SHALL APPLY TO THE9 U NITED STATES SECRETARY OF AGRICULTURE TO PARTICIPATE IN THE10 DEMONSTRATION PROJECT OPERATED PURSUANT TO 42 U.S.C. SEC. 175811 (b)(15) FOR DIRECT CERTIFICATION FOR CHILDREN RECEIVING MEDICAID12 BENEFITS, WITH THE INTENT THAT THE DEMONSTRATION PROJECT IS13 IMPLEMENTED STATEWIDE TO THE EXTENT ALLOWABLE UNDER FEDERAL14 LAW. IF THE STATE IS SELECTED TO PARTICIPATE IN THE DEMONSTRATION15 PROJECT, THE DEPARTMENT OF EDUCATION SHALL COMPLY WITH ALL OF16 THE REQUIREMENTS OF THE DEMONSTRATION PROJECT , INCLUDING17 ENTERING INTO AN AGREEMENT WITH THE DEPARTMENT OF HEALTH CARE18 POLICY AND FINANCING TO ESTABLISH PROCEDURES BY WHICH A STUDENT19 MAY BE CERTIFIED, WITHOUT FURTHER APPLICATION , AS MEETING THE20 ELIGIBILITY REQUIREMENTS FOR FREE OR REDUCED -PRICE MEALS21 PURSUANT TO THE NATIONAL SCHOOL BREAKFAST PROGRAM AND THE22 NATIONAL SCHOOL LUNCH PROGRAM BASED ON INFORMATION COLLECTED23 BY THE DEPARTMENT OF HEALTH CARE POLICY AND FINANCING IN24 IMPLEMENTING THE MEDICAID PROGRAM .25 (12) T HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2025.26 SECTION 2. Safety clause. The general assembly hereby finds,27 HB22-1202 -9- determines, and declares that this act is necessary for the immediate1 preservation of the public peace, health, or safety.2 HB22-1202 -10-