S 0553 General Bill, By Reese
 A Bill to repeal Act 135 of 1993 relating to the Early Childhood Development
 and Academic Assistance Act, and to repeal Chapter 139 of Title 59 and Section
 59-1-454, Code of Laws of South Carolina, 1976, which were added by Act 135 of
 1993; to repeal Act 380 of 1994 which authorized the extension of certain
 completion dates of long-range comprehensive plans required by the Early
 Childhood Development and Academic Assistance Act; to amend Sections 59-1-450,
 as amended, 59-3-90, as amended, 59-5-65(8), as amended, 59-19-340, as
 amended, 59-20-40(1)(c), as amended, 59-20-60, as amended, of the 1976 Code,
 relating to various education provisions, so as to delete from these Sections
 the amendments made by Act 135 of 1993, and to reenact Sections 59-5-65(9),
 59-20-40(7), 59-18-20, and 59-65-410 through 59-65-460 of the 1976 Code
 relating to various education provisions which were repealed by Act 135 of
 1993.

   02/22/95  Senate Introduced and read first time SJ-4
   02/22/95  Senate Referred to Committee on Education SJ-4

A BILL

TO REPEAL ACT 135 OF 1993 RELATING TO THE EARLY CHILDHOOD DEVELOPMENT AND ACADEMIC ASSISTANCE ACT, AND TO REPEAL CHAPTER 139 OF TITLE 59 AND SECTION 59-1-454, CODE OF LAWS OF SOUTH CAROLINA, 1976, WHICH WERE ADDED BY ACT 135 OF 1993; TO REPEAL ACT 280 OF 1994 WHICH AUTHORIZED THE EXTENSION OF CERTAIN COMPLETION DATES OF LONG-RANGE COMPREHENSIVE PLANS REQUIRED BY THE EARLY CHILDHOOD DEVELOPMENT AND ACADEMIC ASSISTANCE ACT; TO AMEND SECTIONS 59-1-450, AS AMENDED, 59-3-90, AS AMENDED, 59-5-65(8), AS AMENDED, 59-19-340, AS AMENDED, 59-20-40(1)(c), AS AMENDED, AND 59-20-60, AS AMENDED, OF THE 1976 CODE, RELATING TO VARIOUS EDUCATION PROVISIONS, SO AS TO DELETE FROM THESE SECTIONS THE AMENDMENTS MADE BY ACT 135 OF 1993, AND TO REENACT SECTIONS 59-5-65(9), 59-20-40(7), 59-18-20, AND 59-65-410 THROUGH 59-65-460 OF THE 1976 CODE RELATING TO VARIOUS EDUCATION PROVISIONS WHICH WERE REPEALED BY ACT 135 OF 1993.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Act 135 of 1993 and Act 280 of 1994 are repealed.

SECTION 2. Chapter 139 of Title 59 of the 1976 Code, as added by Act 135 of 1993, is repealed.

SECTION 3. Section 59-1-450 of the 1976 Code, as amended by Act 135 of 1993, is further amended to read:

"Section 59-1-450. The State Board of Education, through the Department of Education and in consultation with the Select Committee, shall promulgate regulations for establishing parenting/family literacy programs to support parents in their role as the principal teachers of their preschool children. The programs must provide parent education to parents and guardians who have children ages birth through five years and who choose to participate in the programs and must include intensive and special efforts to recruit parents or guardians whose children are at risk for school failure. The program or programs also should include developmental screening for children and offer parents of children from birth through five years opportunities to improve their education if the parents do not possess a high school diploma or equivalent certificate.

The State Board of Education, through the Department of Education and after consultation with the Select Committee, shall promulgate regulations to implement parenting/family literacy programs in all school districts or consortia of school districts. Priority must be given to serving those parents whose children are considered at-risk for school failure according to criteria established by the State Board of Education. From funds appropriated for the programs, an adequate number of those parenting programs funded under the Target 2000 Act shall receive priority in funding for fiscal years 1993-94 and 1994-95 and must be funded at no less than the level received in fiscal year 1992-93 contingent upon their agreeing to provide technical assistance to other districts and schools planning and implementing parenting/family literacy programs in concert with the Department of Education's technical assistance process required in this chapter. Only those projects whose evaluations show them to be most effective may be selected based on criteria developed by the State Department of Education in consultation with the Select Committee.

Beginning in fiscal year 1995-96 for districts with Target 2000 Act parenting programs and in fiscal year 1993-94 for all other school districts and district consortia, funding must be allocated to districts and consortia serving more than two thousand pupils on a base amount of not less than forty thousand dollars with any additional appropriation to be distributed based on the number of free- and reduced-price lunch-eligible students in grades one through three in a district or consortium relative to the total free- and reduced-price lunch eligible students in grades one through three in the State. The programs developed in each district and consortium may draw upon lessons learned from parenting programs funded under this section.

The State Board of Education, through the Department of Education, in developing the regulations for this program shall consult with representatives of the Department of Health and Environmental Control, Department of Social Services, the South Carolina State Library, and Health and Human Services Finance Commission, and with adult education and early childhood specialists. In developing the regulations, the State Board and State Department of Education shall consider the guidelines developed for the Target 2000 Act parenting programs and any available evaluation data.

By December, 1993, the chairman of the Human Services Coordinating Council shall convene a committee consisting of supervisors of programs dealing with early childhood and parenting from the Department of Education, Department of Health and Environmental Control, the Department of Social Services, the South Carolina State Library,and the Health and Human Services Finance Commission; at least one representative from each of these agencies who administer these programs at the county and district level; and adult education and early childhood specialists. The executive director of the Finance Commission shall chair this committee. By July 1, 1994, this committee shall report to the Select Committee and the Joint Committee on Children ways to better coordinate programs for parenting and literacy and recommend changes to each agency's state regulations or provisions of law which would better promote coordination of programs. The Department of Health and Environmental Control, the Department of Social Services, and the Health and Human Services Finance Commission shall direct their employees at the county and district levels to cooperate with school district officials in establishing parenting/family literacy programs.

Upon the appropriation of funds by the General Assembly for this purpose, the State Department of Education is directed to review programs which are effective in providing parents support in their role as the principal teachers of their preschool children. The purpose of the review is for the State Board of Education to select or adapt a program or programs, after consultation with the Select Committee, for pilot testing in South Carolina during 1989-90 and 1990-91. The selected or adapted programs must provide parent education to parents and guardians who have children ages birth through five years and who choose to participate in the programs and must include intensive and special efforts to recruit parents or guardians whose children are at risk for school failure. The program or programs also should include developmental screening for children and offer parents of children from birth through five years opportunities to improve their education if the parents do not possess a high school diploma or equivalent certificate.

After pilot testing, the State Board of Education, after consultation with the Select Committee, shall promulgate regulations to implement parent education programs in all school districts. Implementation of the programs in the districts must be phased in over three years. Priority must be given to serving those parents whose children are considered at-risk for school failure according to criteria established by the State Board of Education. From funds appropriated for the programs, each school district must be allocated an amount determined by computing the percentage of all families with children ages birth through five years served statewide as compared with those families who are served by the school district and multiplying this percentage by the total statewide appropriation for the program.

An evaluation of the programs pilot-tested shall be provided by March 1, 1991, and of all implemented programs by December first annually thereafter to the Select Committee and Business-Education Subcommittee.

Regulations of the State Board of Education causing parent education programs to be implemented in the school districts must allow districts to develop or select an alternative program for implementation in the district, if the program meets criteria for initial approval by the board. The board's criteria for initial approval must include a requirement that school districts develop an evaluation component for the program which is acceptable to the board or its designee. To continue to use an alternative program, a school district must demonstrate the success of the program in accordance with the approved evaluation component. A school district using an alternative program must receive an allocation from the appropriation by the General Assembly for this program which is equal to the allocation the district would receive if the district used the program or programs selected or adapted by the board."

SECTION 4. Section 59-1-454 of the 1976 Code, which was added by Act 135 of 1993, is repealed.

SECTION 5. Section 59-3-90 of the 1976 Code, as amended by Act 135 of 1993, is further amended to read:

"Section 59-3-90. The State Department of Education shall provide recommendations and assist districts in conducting in-service training programs for teachers based on the findings and research it derives from the study of effective schools and classrooms and from district plans developed in accordance with Section 59-139-10. All of the school districts of this State must have implemented an on-going, long-range professional development training programs in support of effective schools and classrooms and as indicated by district plans no later than the 1994-95 school year.

During the 1984-85 school year the State Department of Education shall develop or select in-service training programs for teachers based on the findings and research it derives from the study of effective schools and classrooms. All of the school districts of this State must have implemented the in-service training programs by the 1986-87 school year."

SECTION 6. Section 59-5-65(8) of the 1976 Code, as amended by Act 135 of 1993, is further amended to read:

"(8) Develop and implement regulations requiring all school districts to provide at least one-half day early childhood development programs for four-year-old children who have predicted significant readiness deficiencies and whose parents voluntarily allow participation. The regulations must require intensive and special efforts to recruit children whose participation is difficult to obtain. The school districts may contract with appropriate groups and agencies to provide part or all of the programs. If a local advisory committee exists in a community to coordinate early childhood education and development, school districts shall consult with the committee in planning and developing services. The State Department of Education shall collect and analyze longitudinal data to determine the effects of child development programs on the later achievement of children by tracking four-year-old child development program participants through kindergarten and the first three years of elementary school to examine their performance on appropriate performance measures.

Develop and implement regulations requiring all school districts to provide at least one-half day early childhood development programs for four-year-old children who have predicted significant readiness deficiencies and whose parents voluntarily allow participation. The regulations must require intensive and special efforts to recruit children whose participation is difficult to obtain. The school districts may contract with appropriate groups and agencies to provide part or all of the programs. These programs must be developed in consultation with the Interagency Coordinating Council on Early Childhood Development and Education. The Interagency Coordinating Council shall consult with the Advisory Committee for Early Childhood Education in developing proposals to submit for State Board of Education consideration. If a local advisory committee exists in a community to coordinate early childhood education and development, school districts shall consult with the committee in planning and developing services. The State Department of Education shall collect and analyze longitudinal data to determine the effects of child development programs on the later achievement of children in the `high-risk' category by tracking four-year-old child development program participants through kindergarten and the first three years of elementary school to examine their performance on the readiness test and the BSAP tests administered in grades 1, 2, and 3. The Governor shall initiate the development of a state plan on early childhood development and education to assist the state in providing appropriate services for preschool children. This plan must be completed by July 1, 1985.

School districts without an early childhood development program during the 1988-89 school year may obtain a waiver from the regulation requiring provision of a program. The waiver may be granted by the State Board of Education for one year, if a school district is unable to implement a program because of unavailability of classroom space and other facilities, including appropriate facilities which may be rented by the school district at a reasonable fee. School districts which are unable to implement a program because of a lack of district facilities may use a portion of the district's allocation under this program to rent appropriate space for one year. The portion of the district's allocation which may be used for rent must be determined by the State Board of Education in conjunction with the School Board of Trustees."

SECTION 7. Section 59-5-65(9) of the 1976 Code which was repealed by Act 135 of 1993 is reenacted to read:

"(9) Develop, with the recommendations of the Basic Skills Advisory Commission, and implement regulations providing compensatory and remedial instruction programs for students who fail to meet the required minimum standards of achievement in the basic skills of reading, writing, and mathematics and for first grade readiness pursuant to the weightings provided in Section 59-20-40. The purpose of compensatory and remedial programs shall be to (1) reduce the number of students who fail to achieve the state standard for the Basic Skills Assessment Program and (2) improve the academic performance of students who have scored below the standard and who may not be able to achieve the state standard. Efforts must be made to use existing personnel by including, but not limited to, (a) modification of school year, (b) modification of school day, and (c) increased utilization of summer schools. In school districts with a high percentage of students identified as `not ready' for first grade, funds provided for compensatory programs may be used to extend the length of their preschool program for identified four and five-year-olds if all other students in other grades 1-6 who qualify for compensatory or remedial instruction are being served.

Definition of Compensatory Education Student. Compensatory education students are those who enter school with severe deficiencies in skills, knowledge, motivation, and other requisite traits which are necessary for building successful school experiences. These students have not formed the appropriate basis for learning as a result of having inadequate language development experiences, insufficient opportunities to experience success, and inadequate developmental opportunities. Therefore, such students can be expected to perform poorly, and will continue to perform poorly, on tests such as the CSAB, BSAP, and CTBS unless appropriate intervention is provided.

Definition of Compensatory Education Program. Compensatory education programs are those which serve the most severe cases of educational deprivation and may include children with learning disabilities or handicaps for whom the compensatory program would be beneficial. These programs serve students for a specific period of time on a daily basis in relatively small group settings and are designed for several years' duration. However, student progress is periodically evaluated to determine appropriate placement. Regular classroom activities are adjusted significantly to accommodate the learning needs of these special students.

For purposes of the South Carolina Education Improvement Act of 1984, compensatory education programs are applicable only to students in grades one through six. First priority for placement are students scoring at or below the twenty-fifth percentile as determined from the Statewide Testing Program (STP) tests mandated by the Education Finance Act of 1977 or Basic Skills Assessment Program (BSAP) test scores in reading and mathematics and who are recommended for placement by teachers. Students scoring above the twenty-fifth percentile shall be placed in the program as funds permit.

Definition of Remedial Education Student. Remedial education students are those who have not adequately mastered the skills and concepts presented through previous instruction. As a result of unlearned skills and concepts these students have developed gaps in their learning which restrict or impede continuous progress toward educational goals. Therefore, these students can be expected to perform below state standard on BSAP tests and below grade level on STP tests.

Definition of Remedial Education Program. Remedial education programs are those which provide instruction especially designed to reteach and reinforce specific basic skills in the areas of reading, writing, and mathematics. These programs may be provided to students through special instruction during the regular school day, for intensive periods during the summer, in study hall, and before or after school.

For purposes of the South Carolina Education Improvement Act of 1984, remedial instruction programs are applicable only to students in grades two through twelve scoring below state standards on BSAP tests or its equivalent on STP and who are recommended for the programs by teachers. The policy of the remedial program is to give primary emphasis to those grades which experience the greatest failure rate. As additional funds become available for the remedial program, students in grades seven through twelve scoring above the twenty-fifth percentile must be included in the remedial program with priority for funding given to middle school students.

School districts shall annually evaluate compensatory and remedial programs as prescribed by State Board of Education regulations. If the average test score gains of students enrolled in a school's reading and mathematics compensatory education program, which is funded under the provision of the South Carolina Education Improvement Act of 1984 does not achieve at least 1.0 NCE gain for two consecutive years the program must undergo formal process evaluation. Further state funding will be contingent upon an approved corrective action plan.

By February first of each year the Basic Skills Advisory Commission and the State Board of Education shall report to the Select Committee an analysis of test scores and data for the preceding school year to include the analysis by the State Department of Education of data necessary to evaluate at the school level the effectiveness of the remedial and compensatory education programs. Additionally, a longitudinal analysis of the data must be provided to determine the long-term effect of program participation on academic achievement of students. The Select Committee then shall make annual recommendations to the General Assembly for reallocation of compensatory and remedial monies if, in its discretion, the reallocation is considered necessary."

SECTION 8. Section 59-19-340 of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:

"Section 59-19-340. The board of trustees of each school district may establish and provide for the education of children who will attain the age of four on or before September first of the applicable school year in child development programs. The board of trustees of school districts may establish and provide having programs serving three- and four-year-old children may continue to serve them."

SECTION 9. Section 59-20-40(1)(c) of the 1976 Code, as last amended by Act 135 of 1993, is further amended to read:

"(1)(c) Weightings, used to provide for relative cost differences, between programs for different students are established in order that funds may be equitably distributed on the basis of pupil needs. The criteria for qualifications for each special classification must be established by the State Board of Education according to definitions established in this article and in accordance with Sections 59-21-510, 59-35-10, 59-53-1860, and 59-53-1900. Cost factors enumerated in this section must be used to fund programs approved by the State Board of Education. Pupil data received by the Department of Education is subject to audit by the department. Cost factors or weightings are as follows:

Pupil Classification Weightings

(1) Kindergarten pupils 1.30

(2) Primary pupils

(grades 1 through 3) 1.24

(3) Elementary pupils

(grades 4 through 8) --

base students 1.00

(4) High school pupils

(grades 9 through 12) 1.25

Special Programs for

Exceptional Students Weightings

(5) Handicapped 1.74

a. Educable mentally

handicapped pupils

b. Learning disabilities

pupils

(6) Handicapped 2.04

a. Trainable mentally

handicapped pupils

b. Emotionally handicapped pupils

c. Orthopedically handicapped pupils

(7) Handicapped 2.57

a. Visually handicapped pupils

b. Hearing handicapped pupils

(8) Speech handicapped pupils 1.90

(9) Homebound pupils 2.10

Vocational Technical Programs Weightings

(10) Pre-vocational 1.20

(11) Vocational 1.29

Add-on Weights for

Early Childhood Development

and Academic Assistance Weightings

(12) Early Childhood Assistance 0.26

(13) Grades 4-12 Academic

Assistance 0.114

Adult Education

(14) Adult education 0.15

No local match is required for adult education and the number of weighted pupil units funded depends on funding available from the general fund of the State and the Education Improvement Act of 1984 Fund.

Each student in the State must be counted in only one of the first eleven pupil classifications. Students shall generate funds for early childhood assistance and grades 4-12 academic assistance in accordance with Section 59-139-20. The State Board of Education must determine the qualifications for each classification in accordance with Sections 59-21-510, 59-35-10, 59-53-1860, 59-53-1900, and Chapter 30 of this title. The program for each classification must meet specifications approved by the State Board of Education.

School districts may count each student who is instructed at home under the provisions of Section 59-65-40 in the district's weighted pupil units at a weighting of .25 for supervising, overseeing, or reviewing the student's program of home instruction. No local match is required for students instructed at home under the provisions of Section 59-65-40.

Add-on Weights for Compensatory and Remediation Weightings

(12) Grades 1-6 Compensatory 0.39

(13) Grades 2-6 Remediation 0.10

(14) Grades 7-12 Remediation 0.12

Adult Education

(15) Adult education 0.15

No local match is required for adult education and the number of weighted pupil units funded depends on funding available from the general fund of the State, and the Education Improvement Act of 1984 Fund.

Each student in the State must be counted in only one of the first eleven pupil classifications. Students determined to need compensatory instruction and remediation must be counted additionally under the twelfth through fourteenth classification. If a student is determined not to meet minimum standards in reading, mathematics, or writing of the Basic Skills Assessment Act or is `not ready' for first grade, and qualifies under state department regulations, a pupil may be counted once for each area for the purposes of calculating the district's remedial weighted pupil units. The State Board of Education must determine the qualifications for each classification in accordance with Sections 59-21-510, 59-35-10, 59-53-1860, 59-53-1900, and Chapter 30 of this title. The program for each classification must meet specifications approved by the State Board of Education.

School districts may count each student who is instructed at home under the provisions of Section 59-65-40 in the district's weighted pupil units at a weighting of .25 for supervising, overseeing, or reviewing the student's program of home instruction. No local match is required for students instructed at home under the provisions of Section 59-65-40."

SECTION 10. Section 59-20-40(7) of the 1976 Code, which was repealed by Act 135 of 1993, is reenacted to read:

"(7) Annually in the General Appropriations Act the General Assembly shall determine an appropriation level for compensatory and remedial programs. The State Board of Education shall promulgate regulations to implement a system to provide a pro rata matching of the weighted pupil units to the pupils in districts of the State who fail to meet the statewide minimum standards in reading, writing, and mathematics or who do not meet the first grade readiness test standard. To accommodate the level of the total appropriation for compensatory and remedial programs, the State Board of Education shall allocate the funding of weighted pupil unit increments according to the following order of priority: (1) all students scoring below BSAP standard on any portion of the exit examination at a remedial weight of .114; (2) grades 1-6, students scoring at or below the 25th percentile at a compensatory weight of .26; (3) grades 1-6, students scoring above the 25th percentile but below BSAP standard at a remedial weight of .114; (4) grades 7-10, students scoring below the 25th percentile at a remedial weight of .114; (5) after all students eligible under priorities 1, 2, 3, and 4 above are funded, students scoring above the 25th percentile but below BSAP standard in grades 1-6 who are classified as remedial must be funded as compensatory students, at a compensatory weight of .26, starting progressively with the first grade and moving through the sixth grade as funds permit; (6) after all students eligible under priorities 1, 2, 3, 4, and 5 above are funded, students scoring above the 25th percentile but below BSAP standard in grades 7-10 who are classified as remedial must be funded at a remedial weight of .114; (7) after all students eligible under priorities 1, 2, 3, 4, 5, and 6 above are funded, students classified as remedial in grades 7-12 must be funded as compensatory at a weight of .26.

No student who scores at or above BSAP standard is eligible for either compensatory or remedial funding. The district's total number of students scoring at the compensatory or remedial level as defined in the priorities in this section must be the number of students constituting one hundred percent to be served. Any district not serving one hundred percent of its eligible compensatory and remedial children funded in this section shall have its allocation reduced proportionately on a per pupil basis. When one hundred percent of the eligible students in one category are served, school districts may use uncommitted funds to serve eligible students in the other category according to the priorities cited. The Board of Education shall promulgate regulations to insure maximum utilization of state and Chapter 1 funds to achieve the purpose of this proviso. Nothing in this section prohibits the General Assembly from appropriating funds to the Department of Education for block grants to address basic skills remediation in early childhood development in the school districts of the State. Nothing in this section prohibits a school district from using funds appropriated pursuant to this section for compensatory and remedial programs in summer school in the following fiscal year."

SECTION 11. Section 59-20-60 of the 1976 Code, as amended by Act 135 of 1993, is further amended to read:

"Section 59-20-60. (1) School districts shall give first spending priority of funds allocated under this chapter to full implementation of the defined minimum program.

(2) The State Board of Education shall audit the programmatic and fiscal aspects of this chapter, including the degree to which a school meets all prescribed standards of the defined minimum program and shall report the results in the Annual Report of the State Superintendent of Education. Schools which have been classified as `dropped' by the defined minimum program accreditation procedures are not eligible for funding in the following fiscal year until an acceptable plan to eliminate the deficiencies is submitted and approved by the State Board of Education.

(3) Each school district board of trustees shall cause the district and each school in the district to develop comprehensive five-year plans with annual updates to outline the District and School Improvement Plans. Districts which have not begun a strategic planning cycle must do so and develop a plan no later than the 1994-95 school year. Districts which have undertaken such a planning process may continue in their planning cycle as long as the process meets the intent of this section and the long-range plans developed or under development can be amended to encompass the requirements of this section. For school year 1993-94, districts may submit either the improvement plan consistent with State Department guidelines or their five-year comprehensive plan.

The State Board of Education shall recommend a format for the plans which will be flexible and adaptable to local planning needs while encompassing certain state mandates, including the early childhood and academic assistance initiative plans pursuant to Section 59-139-10. All district and school plans must be reviewed and approved by the board of trustees. The District Plan should integrate the needs, goals, objectives, strategies, and evaluation methods outlined in the School Plans. Measures of effectiveness must include outcome and process indicators of improvement and must provide data regarding what difference the strategies have made. Staff professional development must be a priority in the development and implementation of the plans and must be based on an assessment of needs. Long- and short-range goals, objectives, strategies, and time lines need to be included.

(4) Each plan shall provide for an Innovation Initiative, designed to encourage innovative and comprehensive approaches based on strategies identified in the research literature to be effective. The Innovation Initiative must be utilized by school districts to implement innovative approaches designed to improve student learning and accelerate the performance of all students. Funds may be expended on strategies in one or more of the following four categories:

(a) new approaches to what and how students learn by changing schooling in ways that provide a creative, flexible, and challenging education for all students, especially for those at risk. Performance-based outcomes which support a pedagogy of thinking and active approaches for learning must be supported;

(b) applying different teaching methods permitting professional educators at every level to focus on educational success for all students and on critical thinking skills and providing the necessary support for educational successes are encouraged;

(c) redefining how schools operate resulting in the decentralization of authority to the school site and allowing those closest to the students the flexibility to design the most appropriate education location and practice;

(d) creating appropriate relationships between schools and other social service agencies by improving relationships between the school and community agencies (health, social, mental health), parents and the business community, and by establishing procedures that cooperatively focus the resources of the greater community upon barriers to success in school, particularly in the areas of early childhood and parenting programs, after-school programs, and adolescent services.

Funds for the Innovation Initiative must be allocated to districts based upon a fifty percent average daily membership and fifty percent pursuant to the Education Finance Act formula. At least seventy percent of the funds must be allocated on a per school basis for school based innovation in accord with the District-School Improvement Plan. Up to thirty percent may be spent for district-wide projects with direct services to schools. District and school administrators must work together to determine the allocation of funds.

For 1993-94, districts and schools may use these funds for designing their innovation initiatives to be submitted to the peer review process established in Section 59-139-10 prior to implementation of the innovations in 1994-95. Notwithstanding any other provisions of law, districts may carry over all unexpended funds in 1993-94, and up to twenty-five percent of allocated funds each year thereafter in order to build funds for an approved program initiative.

(5) An annual district programmatic report to the parents and constituents of the school district must be developed by the local school board. Each report shall include the goals and objectives of the school district, the strategies implemented to meet the goals and objectives, and an evaluation of the outcomes. An annual school report to the parents and constituents of the school must be developed by the School Improvement Council and shall provide information on the school's progress on meeting the school and district goals and objectives. These reports shall be provided by November fifteenth of each year.

(6) Each school board of trustees shall establish an improvement council at each school in the district and this council is to be involved in improvement and innovation efforts at the school. The council shall be composed of at least two parents, elected by the parents of the children enrolled in the school; at least two teachers, elected by the faculty; at least two students in schools with grades nine and above elected by the students; other representatives of the community and persons appointed by the principal. The elected members of the council shall comprise at least a two-thirds majority of the elected and appointed membership of the council. The council should also include ex-officio members such as the principal and others holding positions of leadership in the school or school organizations, such as parent-teacher groups, booster clubs, and federal program advisory groups. Each council shall assist in the preparation of the five year plan and annual updates required in this section, assist with the development and monitoring of school improvement and innovation, provide advice on the use of school incentive grant awards, and provide assistance as the principal may request as well as carrying out any other duties prescribed by the local school board. The local school board shall make provisions to allow any council to file a separate report to the local school board if the council considers it necessary. However, no council has any of the powers and duties reserved by law or regulation to the local school board. Notwithstanding any other provisions of this subsection, an area vocational center's school improvement council, it must be composed as defined exclusively by federal law. The council shall perform all duties and responsibilities provided for in any state or federal law which applies to these councils.

In order to provide additional accountability for funds expended under statutory requirements, the elected members of the school improvement council shall serve a minimum term of two years. Parents of students or students in their last year of enrollment at an individual school may serve terms of one year only. The terms must be staggered and initially determined by lot. Elections of members to school improvement councils shall occur no later than October fifteenth of the school year. The elections must be organized to ensure that every parent and faculty member has an opportunity to vote each year. Within thirty days following the election, the names, addresses, terms of service, and status of all council members as a parent, teacher, student, or representative of the community must be provided to the School Improvement Council Assistance at the University of South Carolina for the purpose of sharing information. The district board of trustees shall include in its annual district report a summary of the training opportunities provided or to be provided for school improvement council members and professional educators in regard to council-related tasks and a summary of programs and activities involving parents and citizens in the school.

(7) Each school district board of trustees shall:

(a) review each school improvement plan and the annual updates for integration with district plans and objectives and school progress in meeting those goals and objectives.

(b) cause to be prepared an annual written report to account for funds expended in each pupil classification as prescribed by the State Board of Education;

(c) participate in the statewide testing program as prescribed by the State Board of Education;

(d) maintain an ongoing systematic evaluation of the educational program needs in the district and shall develop a comprehensive annual and long-range plan for meeting these program needs. These plans shall include an assessment of needs. At minimum, the process of assessing needs and establishing goals and objectives must be carried out for each of the program classifications specified in Section 59-20-40(1)(c). Each school district board of trustees shall develop and execute a method of evaluating the extent to which the goals and objectives specified in its comprehensive plan are being achieved and shall annually report the results of its evaluation to the people of the school district and to the State Board of Education.

(e) provide a program for staff development for all educational personnel. A portion of the funds in the foundation program must be used for this staff development that may include, but not be limited to:

(1) college courses in education, subject area of certification or management;

(2) teaching center offerings;

(3) State Department of Education workshops; and

(4) district-wide or in-school training for the purpose of fostering professional growth or improving the competency of all educational personnel.

(f) in accordance with the format approved by the State Board of Education, annually submit to the State Board of Education and to the people of the district that district's fiscal report.

(8) The State Department of Education shall:

(a) develop, by September, 1993, a plan for offering help to districts and schools in designing and implementing the district and school comprehensive improvement plan;

(b) develop, by December, 1993, with approval by the State Board of Education, criteria for monitoring the district and school plans;

(c) review each district's annual fiscal report;

(d) provide assistance to school districts in improving the programs, correcting the deficiencies, and in carrying out its staff development program.

(e) develop or select and field test a competency based student assessment program;

(f) prepare an annual fiscal and programmatic report to the Governor and the General Assembly each year to assess compliance with this chapter and to make recommendations concerning necessary changes in this chapter;

(g) in compliance with the intent of the chapter, waive the prescribed reporting practices if considered necessary by the State Board of Education and authorize the substitution of alternate reporting practices which accomplish the objectives implied in this section. This waiver may not be utilized to avoid full accountability and implementation of this chapter.

(9) The Legislative Audit Council shall audit to assess compliance with this chapter as requested by the General Assembly. On the basis of these audits, the Legislative Audit Council shall make recommendations to the General Assembly concerning necessary changes in this chapter.

(10) A twelve member Education Finance Review Committee must be established to advise the General Assembly and review its implementation of this chapter. This advice and review may include, but not be limited to:

(a) the cost of the defined minimum program;

(b) provisions included in the defined minimum program;

(c) the pupil classification weights in Section 59-20-40;

(d) the formula for computing required local effort;

(e) the ongoing evaluation of the education program needs of the school districts.

The committee must be made up of three representatives from each of the following committees of the General Assembly--Senate Education, Senate Finance, House Education and Public Works, and House Ways and Means--appointed by each respective chairman. The committee shall seek the advice of professional educators and all other interested persons when formulating its recommendations.

(1) School districts shall give first spending priority of funds allocated under this chapter to full implementation of the defined minimum program.

(2) The State Board of Education shall audit the programmatic and fiscal aspects of this chapter, including the degree to which a school meets all prescribed standards of the defined minimum program and shall report the results in the Annual Report of the State Superintendent of Education. Schools which have been classified as `dropped' by the defined minimum program accreditation procedures shall not be eligible for funding in the following fiscal year until an acceptable plan to eliminate the deficiencies is submitted and approved by the State Board of Education.

(3) Each school district board of trustees shall cause each school in the district to prepare an annual written report to be known as the school improvement report. The reports shall focus on factors found by research to be effective in improving schools, these factors to be prescribed by regulation of the State Board of Education. The State Board of Education shall prescribe the format of the reports and the manner in which they must be developed and submitted. Each school board of trustees shall establish an improvement council at each school in the district composed of at least two parents, elected by the parents of the children enrolled in the school; at least two teachers, elected by the faculty; at least two students in schools with grades nine and above elected by the students; other representatives of the community and persons elected by the principal. The elected members of the council shall comprise at least a two-thirds majority of the membership of the council. The councils must be constituted in each school no later than January 1, 1978. Each council shall assist in the preparation of the annual school improvement report required in this section, assist with the development and monitoring of school improvement, provide advice on the use of school incentive grant awards, and provide assistance as the principal may request as well as carrying out any other duties prescribed by the local school board. The local school board shall make provisions to allow any council to file a separate report to the local school board if the council considers it necessary. However, no council shall have any of the powers and duties reserved by law or regulation to the local school board. Notwithstanding any other provisions of this item, when an area vocational center establishes a local school improvement council, it must be composed as defined exclusively by federal law. The council shall perform all duties and responsibilities provided for in any state or federal law which applies to these councils.

In order to provide additional accountability for funds expended under the Education Finance Act and the Education Improvement Act the elected members of the school improvement council shall serve a minimum term of two years. Parents of students or students in their last year of enrollment at an individual school may serve terms of one year only. The terms must be staggered and determined by lot. Elections of members to school improvement councils shall occur no later than October fifteenth of the school year. Within thirty days following the election, the names, addresses, terms of service, and status of all council members as a parent, teacher, student, or representative of the community must be forwarded to the State Department of Education for the purpose of sharing information. The district board of trustees shall include in its annual district report a summary of the training opportunities provided or to be provided for school improvement council members and professional educators in regard to council-related tasks and a summary of programs and activities involving parents and citizens in the school.

(4) Each school district board of trustees shall:

(a) Prepare a written appraisal of the school improvement report of each school with emphasis on needs, goals, objectives, needed improvements, and plans for the utilization of resources.

(b) cause to be prepared an annual written report to account for funds expended in each pupil classification as prescribed by the State Board of Education.

(c) participate in the statewide testing program, which must include nationally normed achievement tests, as prescribed by the State Board of Education.

(d) maintain an ongoing systematic evaluation of the educational program needs in the district and shall develop a comprehensive annual and long-range plan for meeting these program needs. These plans shall include an assessment of needs. At minimum, the process of assessing needs and establishing goals and objectives shall be carried out for each of the program classifications specified in Section 59-20-40(1)(c). Each school district board of trustees shall develop and execute a method of evaluating the extent to which the goals and objectives specified in its comprehensive plan are being achieved and shall annually report the results of its evaluation to the people of the school district and to the State Board of Education.

(e) provide a program for staff development for all educational personnel on an annual and long-range basis. A portion of the funds in the foundation program shall be used for this staff development that may include, but not be limited to: (1) college courses in education, subject area of certification or management; (2) teaching center offerings; (3) State Department of Education workshops; and (4) district-wide or in-school training for the purpose of fostering professional growth or improving the competency of all educational personnel.

(f) in accordance with the format approved by the State Board of Education, annually submit to the State Board of Education and to the people of the district that district's fiscal report. Each school district shall annually submit to the State Board of Education and to the people of the district that district's programmatic report including results of the required testing program, the annual long-range plan, and the evaluation of program effectiveness by November fifteenth of each year.

(5) The State Department of Education shall:

(a) receive and review the summary report from each school.

(b) review each district's annual fiscal report, annual and long-range plan, and its evaluation of programmatic effectiveness. On the basis of this review the department shall provide information in a published report to the local school board of trustees, the Superintendent and other administrative personnel of the district for improvement in the program and in correcting the deficiencies discovered.

(c) provide assistance to school districts in improving the programs, correcting the deficiencies, and in carrying out its staff development program.

(d) develop or select and field test a competency based student assessment program in the basic skill areas of reading and mathematics utilizing criterion reference tests.

(e) prepare an annual fiscal and programmatic report to the Governor and the General Assembly beginning the second fiscal year of the operation of this chapter and each year thereafter to assess compliance with the provisions of this chapter and to make recommendations concerning necessary changes in this chapter.

(f) in compliance with the intent of the chapter, waive the prescribed reporting practices if deemed necessary by the State Board of Education and authorize the substitution of alternate reporting practices which accomplish the objectives implied in this section. This waiver shall not be utilized to avoid full accountability and implementation of this chapter. The State Department of Education shall report in the superintendent's annual report all waivers granted under this section.

(g) adjust periodically the DMP accreditation standards to reflect the funding levels appropriated under the chapter, consistent with the basis utilized by the General Assembly in establishing the base student cost.

(6) The Legislative Audit Council shall make sample audits beginning the second fiscal year of the operation of this chapter and each year thereafter to assess compliance with the provisions of this chapter. On the basis of these audits, the Legislative Audit Council shall make recommendations to the General Assembly concerning necessary changes in this chapter.

(7) A twelve member Education Finance Review Committee shall be established to advise the General Assembly and review its implementation of the provisions of this chapter. Such advice and review may include, but not be limited to:

(a) the cost of the defined minimum program;

(b) provisions included in the defined minimum program;

(c) the pupil classification weights in Section 59-20-40;

(d) the formula for computing required local effort;

(e) the ongoing evaluation of the education program needs of the school districts.

The committee shall be made up of three representatives from each of the following committees of the General Assembly--Senate Education, Senate Finance, House Education and Public Works, and House Ways and Means--appointed by each respective chairman. The committee shall seek the advice of professional educators and all other interested persons when formulating its recommendations."

SECTION 12. Section 59-18-20 of the 1976 Code, which was repealed by Act 135 of 1993, is reenacted to read:

"Section 59-18-20. (A) The State Board of Education, acting through the State Department of Education, shall establish a competitive grant program whereby schools may be awarded grants to implement exemplary and innovative programs designed to improve instruction. These programs may include more effective utilization of substitute teachers at the individual school level.

(B) To encourage public schools to implement innovative and comprehensive approaches for improving student development, performance, and attendance, a competitive school innovation grants program is also established. Funds for the competitive school innovation grants program are as provided by the General Assembly in the annual general appropriations act. Beginning with the 1991-92 school year, innovative programs are those which seek to fundamentally redefine how schools operate, undertake new approaches to what and how students learn, apply different teaching methods, or create appropriate relationships between schools and other social service agencies. The State Board of Education, acting through the State Department of Education, must provide by regulation for this competitive grants program. All schools are eligible to apply for these grants.

A committee composed of members of the Business-Education Partnership for Excellence in Education and appointed by the chairman of the Business-Education Partnership shall recommend to the State Board of Education the criteria and guidelines to be used in evaluating each grant application. The criteria must include, but not be limited to, the involvement of teachers, parents, students, businesses, and school improvement councils in the development, application, and implementation of the grant proposal. Grant proposals which involve the greatest percentage of students and staff must receive priority consideration for funding. The State Department of Education and at least two members of the Business-Education Partnership, appointed by the chairman of the partnership and representing the business community, must review all grant applications and must recommend to the State Board of Education grant recipients.

Each grant award for planning purposes cannot exceed five thousand dollars for each school. Each grant award for program implementation cannot exceed ninety thousand dollars over a three-year period. Grant awards may include funds for the purchase of technical assistance.

To qualify for an additional grant award beyond the initial three years, a school must exhibit a school gain index value at or above the state average as computed in the school incentive grant program pursuant to Section 59-18-10 at least once during the initial three-year grant period.

The State Board of Education must give special consideration for waivers of regulations and reporting requirements to those schools receiving these grant awards.

Any unexpended balance of an appropriation for these school innovation grants on June thirtieth of a fiscal year must be carried forward and expended for the same purpose during the next fiscal year."

SECTION 13. Sections 59-5-410 through Section 59-5-460 of the 1976 Code, which were repealed by Act 135 of 1993, are reenacted to read:

"Section 59-65-410. For purposes of this article, a `dropout' is a pupil who leaves school for any reason, except death, before graduation or completion of a course of studies and without transferring to another school.

Section 59-65-420. The State Board of Education, acting in consultation with and assistance from the Select Committee, shall cause programs designed to reduce and recover dropouts to be developed and pilot-tested in school years 1989-90, 1990-91, and 1991-92. In 1989-90 and 1990-91, programs shall be piloted in no more than ten school districts and in no more than ten elementary, ten middle, and ten high schools, and in 1991-92 in additional schools and school districts, but in no more than twenty-five percent of the state's schools and districts. In selecting the pilot programs, the latest research on the effectiveness of various strategies to reduce and retrieve dropouts must be considered, including, but not limited to, parent training and involvement; mentoring; enriched programs, including after school and summer programs; and interagency teams. Following the initial three years of pilot testing, dropout prevention, and retrieval programs must be phased in in all school districts over three years. Following pilot testing, funds must be allocated to the school districts on the basis of a formula that incorporates a base allocation in addition to each district's total weighted pupil units and its average attrition rate in grades 9 through 12 over the most recent five years. The programs must be revised as needed based on continual evaluation and refinement of programs throughout implementation.

It is the intent of the General Assembly that the recommendations of the Governor's Council on At-Risk Youth be considered in the further development of statewide policy on the issues addressed in this section.

Section 59-65-430. (A) The General Assembly shall appropriate funds in fiscal year 1989-90, 1990-91, and 1991-92 for planning, program development, and pilot testing components for a dropout prevention and retrieval program in school districts and schools which are designated by the State Board of Education after consultation with the Select Committee. The Department of Education, a school, or school district which is pilot testing a dropout and retrieval program, individually or with other participants, may use a portion of the program funds for the purchase of technical assistance during planning, development, and implementation of the program. Funds appropriated under this section may be carried forward from one fiscal year to another for the purpose of funding special summer programs. A report on the status of the programs must be provided to the Select Committee and the Business-Education Subcommittee by March 1, 1990, and an evaluation report must be provided annually thereafter by December first.

(B) The State Board of Education shall approve district plans which meet the criteria established by regulation and shall waive those regulations as requested by the schools and districts when waiver of the regulations bears a rational relationship to the implementation of the proposed program.

(C) At the conclusion of pilot testing, the State Board of Education, in consultation with the Select Committee, shall also promulgate regulations requiring each school district to develop written objectives and begin detailing plans for a comprehensive dropout prevention and retrieval program using program components found to be effective during pilot testing. The regulations must also require districts to give priority for the use of funds allocated under this article to dropout prevention programs for students below grade ten.

The regulations must allow districts to develop or select other programs for implementation in the district, including programs expanding or extending existing state or locally funded programs for students who are at risk of dropping out of school, if the programs meet criteria for initial approval by the board. The board's criteria for initial approval must include a requirement that school districts develop an evaluation component for the programs, which is acceptable to the board or its designee. To continue to use the alternative programs developed or selected by the district, the school district must demonstrate the success of the programs in accordance with the approved evaluation component.

Section 59-65-440. An adequate number of the schools and districts selected for pilot testing must be chosen for the purpose of serving as lead schools or school districts in a network for schools and districts which will cover all regions of the State. Beginning with the 1990-91 school year, lead schools and districts shall initiate and provide for on-going discussions and work sessions among schools and districts within a network or networks on strategies for implementing programs which are successful in reducing and recovering dropouts. The State Board of Education shall assist lead schools and school districts in their function as lead schools and districts and shall facilitate the successful operation of the network by distributing funds to the networks in accordance with procedures approved by the State Board of Education in consultation with the Select Committee and Business-Education Subcommittee and in accordance with appropriations provided by the General Assembly.

Section 59-65-450. In consultation with the Select Committee, the State Board of Education shall establish minimum standards for evaluating the potential for success and quality of implementation of school and district dropout prevention and retrieval programs. The minimum standards must include outcome measures to be applied to school and district dropout programs after a reasonable period of implementation of a program in a school or district.

Section 59-65-460. Each year after the 1991-92 school year, the State Department of Education shall apply the standards set pursuant to Section 59-65-450 to all schools and school districts which have received state funds to operate a dropout prevention and retrieval program for at least two years. When application of the standards indicates that a school's or district's dropout prevention and retrieval program is deficient, the State Board of Education shall direct the district board of trustees to:

(1) study the dropout prevention and retrieval program in the school or district;

(2) identify factors rendering the program deficient; and

(3) by not later than March fifteenth, submit for approval to the State Board of Education a plan for corrective action. During the period that a school's or district's program is designated as deficient, the State Department of Education shall monitor and provide feedback on the program and the corrective action plan and continuously furnish advice and technical assistance. If a school or district fails to satisfactorily implement the corrective action plan within six months of approval of the plan, the failure must be indicated in the status of the school's or district's accreditation classification. Funds for monitoring and technical assistance under this provision must be provided by the General Assembly in the annual general appropriations act."

SECTION 14. This act takes effect upon approval by the Governor.