ON APRIL 4, 2024, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2557, AS AMENDED.
AMENDMENT #1 rewrites the bill to enact the "Innovative School District Act," as described below, that applies to the 2024-2025 school year and then each school year thereafter.
INNOVATIVE SCHOOL DISTRICT
This amendment authorizes a public university in this state that is a comprehensive doctoral-extensive institution of higher learning and the home to a public training school compendium that includes Pre-K through any of the grades nine through 12 to operate an innovative school district. The University of Memphis is authorized to operate the initial innovative school district. The department of education ('department") may approve additional public universities that meet the qualifications described in this amendment to operate an innovative school district based upon future state educational needs.
As used in this amendment, "innovative school district" means an LEA authorized by this amendment that is composed of schools serving students in any of the grades Pre-K-12, as training schools operated by a public university that is approved by the department to operate an innovative school district. Additionally, as used in this amendment, "training school" means a public school that serves students in any of the grades Pre-K-12 and that is affiliated with a public institution of higher education in this state, to pilot and model high-quality innovative educational practices and teacher training programs, to stimulate innovative educational programs, to promote robust educational research and practice, to provide opportunities for innovation in instruction, and to provide avenues for delivering innovative course programs aligned to the needs of this state through model programs.
GOVERNING BODY
This amendment requires the governing body for a public university that is approved by the department to operate an innovative school district to serve as the local board of education for such innovative school district. The governing body may appoint from its membership a committee to perform the functions of a local board of education for the innovative school district. If the governing body appoints a committee to perform the functions of a local board of education for the innovative school district, then the committee is authorized to take any action that the governing body is authorized or required to take concerning the operation of the innovative school district.
This amendment provides that the governing body for a public university that is approved by the department to operate an innovative school district has, at a minimum, the same authority and autonomy afforded to LEAs under state law regarding the procurement of goods and services. The governing body must develop written procedures for the procurement of all goods and services in compliance with the expenditure thresholds for competitive bidding outlined or permitted in existing law.
This amendment authorizes the governing body for a public university that is approved by the department to operate an innovative school district to exercise the authority with regard to schools in such innovative school district as a state college or university is authorized to exercise pursuant to the existing law relevant to training schools for practice teachers. However, a governing body for a public university that is approved by the department to operate an innovative school district is not required to contract with an LEA for the operation of a training school in order to exercise the authority authorized by this provision.
This amendment authorizes the governing body for a public university that is approved by the department to operate an innovative school district to, in the operation of such innovative school district, exercise the powers and duties authorized by the existing law relevant to the powers and duties of the board of regents for the state university and community college system.
This amendment authorizes the governing body for a public university that is approved by the department to operate an innovative school district to delegate to the chief executive officer of the public university authorization to designate a university employee to serve as the director of schools for the innovative school district. Except as otherwise provided in this amendment, the governing body for a public university that is approved to operate an innovative school district must employ the university employee to serve as the director of schools for the innovative school district. The university employee selected to serve as the director of schools for an innovative school district is authorized and required to perform the functions of a director of schools for the innovative school district. If the governing body for a public university that is approved by the department to operate an innovative school district appoints a committee to perform the functions of a local board of education for the innovative school, then the university employee selected to serve as the director of schools for the innovative school district must serve as an ex officio, nonvoting member of the established committee and liaison between the board and the schools.
STUDENT LEARNING
This amendment requires schools in an innovative school district to provide sequential instruction to students and educate students using curricula and educational programming aligned to the state academic standards adopted by the state board of education and that generate new and innovative educational models to advance early childhood literacy and workforce-aligned education. An innovative school district, in collaboration with the department, must annually determine the research, practice, and professional development goals for the innovative school district, in addition to the professional development requirements for all other LEAs and as established in this title.
This amendment requires programs for special education offered by an innovative school district to be informed by the research and evaluation goals of the district.
FUNDING
This amendment authorizes an innovative school district to receive, control, and expend local and state funding for schools in its jurisdiction, and to seek, receive, expend, manage, and retain federal funding and grant funding and otherwise seek, obtain, expend, manage, and retain funding with the same authority as other LEAs. Schools in an innovative school district may receive all appropriate allocations of federal funds as other LEAs under federal law or regulation. All funding allocations and disbursements must be made in accordance with procedures developed by the department.
An innovative school district may receive donations of money, property, or securities from any source for the benefit of the innovative school district and the schools in the innovative school district. All such funds must, in good faith, be disbursed in accordance with any conditions applicable to the gifts.
This amendment authorizes alumni associations, foundations, and booster associations affiliated with a public university that is approved by the department to operate an innovative school district to donate, dedicate, or otherwise allocate funds received by the organization to one or more schools in the innovative school district. A school in the innovative school district may receive supplemental revenue from organizations if the governing body of the respective organization recommends the expenditure of funds collected by the organization for the benefit of the school. The president of a public university that is approved to operate an innovative school district may override any proposed donation, dedication, allocation, or expenditure of funds from one or more of the organizations or more of the schools in the innovative school district, if the donation, dedication, allocation, or expenditure would violate a state or federal law or if the president determines that the donation, dedication, allocation, or expenditure is not in the best interest of the innovative school district.
FACULTY
Except as otherwise provided in this amendment, this amendment provides that the director of schools for an innovative school district serves as the chief executive officer of the innovative school district and is responsible for overseeing the education, research, and evaluation, and other goals of the district.
This amendment requires the director of schools for an innovative school district to employ a principal for each school in the district. Except as otherwise provided in this amendment, a school principal for a school in an innovative school district is authorized and required to perform the functions of a school principal for the principal's assigned school in the innovative school district. A school principal for a school in an innovative school district must comply with all requirements for school principals established by law.
This amendment authorizes faculty employed by the governing body for a public university that is approved by the department to operate an innovative school district to serve as educators at schools in the innovative school district while also serving as a full-time faculty member. A faculty member of a public university that is approved by the department to operate an innovative school district who serves as an educator at one or more schools in the innovative school district must meet the certification requirements of existing law and is subject to evaluation.
ANNUAL REPORT
Beginning January 15 following one full school year of operation of an innovative school district and each January 15 thereafter, this amendment requires the local board of education for an innovative school district to provide a report to the department. The report must include (i) findings and recommendations based on the research goals developed pursuant to this amendment; and (ii) compliance data for the practice and professional development goals developed pursuant to this amendment
PROHIBITION FOR AUTHORIZING PUBLIC CHARTER SCHOOLS
This amendment prohibits the innovative school district from authorizing public charter schools.
RIGHTS AND RESPONSIBILITIES
Except as otherwise provided in this amendment or another law, an innovative school district has the same rights and responsibilities as an LEA with an elected school board. The state and political subdivisions of the state must provide an innovative school district with the same benefits as an LEA with an elected school board.
TRAINING SCHOOLS FOR PRACTICE TEACHERS
Present law authorizes each institution, acting through its governing board, to contract with a local board of education to provide the teaching of the children of public school age in the training school, whereby the training school must receive all state and federal funds received by the local board of education as a result of this contract for the operation of the training school, including TISA allocations and any other funds that may be allocated for the operation of public schools of this state. Training schools are eligible to receive grants and other funds in the same manner as the public schools in this state. The control of the school is wholly under the direction of the respective institution.
This amendment adds to the present law by providing that the governing body for a public university that is approved by the department to operate an innovative school district is not required to have a contract with a local school board in order to operate a training school that is part of the innovative school district.
This amendment authorizes an institution that maintains a training school and that is approved by the department to operate an innovative school district to receive public funds for the operation of the training school. The commissioner of education must ensure that a training school that is operated by an innovative school district receives all state, local, and federal funds that would otherwise be received by the local board of education for the operation of the training school, including TISA allocations and any other funds that may be allocated for the operation of public schools of this state. Training schools that are operated by innovative school districts are eligible to receive grants and other funds in the same manner as the public schools in this state. If a training school transitions from being operated pursuant to a contract between an LEA and a state college or university to being operated as part of an innovative school district, then the LEA must, for the first school year that the training school is operated as part of the innovative school district, provide the governing body for a public university that operates the innovative school district with the same level of support for the operation of the training school as the LEA provided to the state college or university under the contract.
RULE PROMULGATION
This amendment requires the state board of education to promulgate rules to effectuate this amendment.
ON APRIL 23, 2024, THE HOUSE SUBSTITUTED SENATE BILL 2557 FOR HOUSE BILL 2678, ADOPTED AMENDMENTS #2 AND #3, AND PASSED SENATE BILL 2557, AS AMENDED.
AMENDMENT #2 revises the provision in the bill that authorizes a public university in this state that is a comprehensive doctoral-extensive institution of higher learning and the home to a public training school compendium that includes pre-K through any of the grades nine through 12 to operate an innovative school district by, instead, authorizing a public university in this state that is a comprehensive doctoral-extensive institution of higher learning and the home to a public training school compendium that includes pre-K through any of the grades nine through 12 and that provides transfer student enrollment opportunities to operate an innovative school district in a county in which the public university maintains a campus.
AMENDMENT #3 requires school funds collected by the county for current operation and maintenance purposes to be apportioned by the county trustee to the innovative school district in the same manner as school funds are apportioned to other LEAs in the county.

Statutes affected:
Introduced: 49-1-910