S.F. 173 Section 1. SPECIAL EDUCATION PILOT PROGRAM —— READING 1 LABORATORY. 2 1. Recognizing the state’s desire to assist children to 3 grow, develop, and learn to their fullest extent and empower 4 young readers in grades kindergarten through three, and to 5 support student achievement and overall academic performance, 6 and recognizing that instructional methodologies and strategies 7 are important considerations in determining the appropriate 8 education for a child with a learning disability, a reading 9 laboratory pilot program is established. The objective of 10 the program shall be to evaluate methodologies and strategies 11 used to teach reading that could be implemented to ensure that 12 the state is meeting the unique needs of individual children; 13 and to assist with student placement decisions in education 14 programs, including placement in the special education program. 15 2. The program shall be administered by the department 16 of education, and shall afford a private education provider 17 the opportunity to demonstrate effective methodologies 18 and strategies in teaching reading for students in grades 19 kindergarten through three identified with special needs. A 20 private education provider shall be selected by the department, 21 which meets the following criteria from among those submitting 22 an application for consideration: 23 a. The provider shall be doing business in at least two 24 locations in a county which contains a school district with an 25 enrollment of at least twenty-five thousand pupils in grades 26 kindergarten through twelve. 27 b. The provider shall possess at least fifteen years of 28 business experience in the application of methodologies and 29 strategies designed to improve reading skills for students in 30 grades kindergarten through twelve. 31 c. The provider shall employ at least forty trained staff, 32 including at least one staff member who is a licensed special 33 education consultant. 34 d. The provider shall be able to document success in 35 -1- LSB 2235XS (4) 84 je/rj 1/ 6

S.F. 173 improving student achievement in reading skills in grades 1 kindergarten through three. 2 3. The department shall develop private provider 3 application forms, and shall publish notice and provide 4 information on the department’s internet site regarding the 5 existence of the pilot program, application procedures, and 6 program participation. The private education provider which 7 meets all of the eligibility criteria set forth in this section 8 shall be selected by the department, and the selection process 9 shall be conducted without bidding. 10 4. Students in grades kindergarten through three, 11 residing in a county which contains a school district with an 12 enrollment of at least twenty-five thousand students in grades 13 kindergarten through twelve, and who have been identified 14 by the school district as qualifying for special education 15 services with mild or moderate learning disabilities involving 16 difficulty in reading, shall be eligible to participate in the 17 program. School districts shall be responsible in coordination 18 with the local area education agency for determining the 19 students who meet the eligibility requirements, for notifying 20 parents and guardians regarding the existence of the program 21 and providing an application form and any other necessary 22 information, and for submitting applications to the department. 23 The department shall select a maximum of fifty students 24 from those students submitting an application. Selection of 25 students shall be done randomly in the event that more than 26 fifty students submit applications, beginning with students 27 in the third grade, then second, then first, and finally 28 kindergarten, with students eligible for free and reduced-price 29 meals under the federal National School Lunch Act and the 30 federal Child Nutrition Act of 1966, 42 U.S.C. § 1751-1785, 31 given priority. Additional eligibility requirements may be 32 established by the private education provider, including 33 intelligence quotient testing scores, in order to provide 34 reliable and beneficial program results. Students submitting 35 -2- LSB 2235XS (4) 84 je/rj 2/ 6

S.F. 173 an application shall be provided with an intelligence test 1 selected by the department and administered by the local 2 area education agency. The results of the test shall remain 3 confidential and shall only be used by the area education 4 agency to determine eligibility and participation in the pilot 5 program. 6 5. Pilot program instruction shall be provided on 7 the premises of the private education provider. Student 8 instruction shall be provided over a nine-week period during 9 the months of June, July, and August 2011. The private 10 education provider shall ensure that each student receives 11 reading instruction appropriate for the student, for a 12 minimum of seven hours per week, with the instruction received 13 considered separate and distinct from the student’s current 14 individual education plan. The school district shall provide 15 transportation expenses for the student to the private 16 education provider’s location, or shall provide reimbursement 17 for transportation expenses to parents or guardians in an 18 amount determined by the school district board of directors. 19 6. The private education provider shall gather performance 20 data to provide for program accountability, including but not 21 limited to pretesting and posttesting, to measure improvement 22 by each student during instruction, and upon the conclusion 23 of the program. The private education provider shall consult 24 with the local area education agency for assistance with 25 pretesting and posttesting, and the area education agency shall 26 approve the tests utilized. The private education provider 27 shall provide progress reports to the parents or guardians of 28 participating students, to the school district in which the 29 participating students are enrolled, and to the department. 30 The department, in conjunction with the legislative services 31 agency and the private provider, shall review and analyze the 32 data collected and submitted by the private education provider. 33 Full assurance relating to confidentiality of identification of 34 individual students’ scores shall be provided. The department 35 -3- LSB 2235XS (4) 84 je/rj 3/ 6

S.F. 173 shall submit a cost-benefit analysis report to the members 1 of the general assembly by January 1, 2012, summarizing the 2 results of the pilot program. The report shall include an 3 analysis of the student improvement as measured through test 4 scores, and a short-term and long-term cost savings analysis 5 for implementing the private education provider’s instruction 6 methodology and strategies. The analysis of the cost savings 7 shall include savings due to a reduction in the statewide 8 average length of participation in the special education 9 program. The report shall also include recommendations 10 relating to statewide implementation of the pilot program. 11 The legislative services agency shall conduct a survey of 12 other reading studies conducted in the state and shall include 13 in the report results relating to public school reading 14 initiatives. The department shall submit a follow-up report 15 by January 1, 2013, tracking continued improvement by students 16 who participated in the program, and including the number of 17 students who are no longer identified as requiring special 18 education instruction. 19 7. The implementation of the pilot program pursuant to this 20 section shall be contingent upon the appropriation of an amount 21 sufficient to fund the costs of the program for the fiscal year 22 beginning July 1, 2011, and ending June 30, 2012. 23 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 24 importance, takes effect upon enactment. 25 EXPLANATION 26 This bill provides for the establishment of a special 27 education alternative instruction pilot program focusing on 28 improving reading skills in grades kindergarten through three. 29 The bill provides intent language supporting the 30 establishment of the program. The bill states that the 31 objective of the program shall be to evaluate methodologies and 32 strategies used to teach reading that could be implemented to 33 ensure that the state is meeting the unique needs of individual 34 children, and to assist with student placement decisions 35 -4- LSB 2235XS (4) 84 je/rj 4/ 6

S.F. 173 in education programs, including placement in the special 1 education program. 2 The program shall be administered by the department of 3 education, and shall involve instruction by a private education 4 provider intended to demonstrate effective methodologies 5 and strategies in teaching reading for students in grades 6 kindergarten through three identified with special needs. The 7 bill provides that a private provider that meets specified 8 criteria shall be selected by the department. The department 9 shall develop private provider application forms and shall 10 publish notice regarding the program, and the selection process 11 shall be conducted without bidding. 12 The bill provides that eligible students shall be in grades 13 kindergarten through three, residing in a county containing 14 a school district with an enrollment of at least 25,000 15 students in grades kindergarten through 12, and shall have been 16 identified as qualifying for special education services with 17 mild or moderate learning disabilities involving difficulty 18 in reading. The bill provides that school districts shall 19 be responsible for determining the students who meet the 20 eligibility requirements, in coordination with the local area 21 education agency. The bill provides that the department shall 22 select a maximum of 50 students from those students submitting 23 an application. The bill provides that additional eligibility 24 requirements may be established by the private provider, and 25 that students submitting an application shall be provided 26 with an intelligence test selected by the department and 27 administered by the local area education agency. The bill 28 provides that the results of the test shall remain confidential 29 and shall only be used by the area education agency to 30 determine eligibility and participation in the pilot program. 31 The bill provides that instruction shall be provided on the 32 premises of the private provider over a nine-week period during 33 the months of June, July, and August 2011, for a minimum of 34 seven hours per week, with the instruction received considered 35 -5- LSB 2235XS (4) 84 je/rj 5/ 6

S.F. 173 separate and distinct from the student’s current individual 1 education plan. The bill provides that the school district 2 shall provide transportation for the student to the private 3 provider’s location, or reimbursement to parents or guardians 4 for transportation expenses. 5 The bill provides that the private provider shall gather 6 performance data to provide for program accountability, with 7 the assistance of the local area education agency, and shall 8 provide progress reports to the parents or guardians of 9 participating students, to the school district in which the 10 participating students are enrolled, and to the department. 11 The bill provides that the department, in conjunction with the 12 legislative services agency and the private provider, shall 13 review and analyze the data, with full assurance relating to 14 confidentiality of identification of individual students’ 15 scores, and that the department shall submit a cost-benefit 16 analysis report to the members of the general assembly by 17 January 1, 2012, summarizing the results of the pilot program. 18 The bill provides that the report shall include an analysis 19 of the student improvement as measured through test scores, a 20 short-term and long-term cost savings analysis for implementing 21 the provider’s instruction methodology and strategies, 22 recommendations relating to statewide implementation of 23 the program, and results relating to public school reading 24 initiatives surveyed by the legislative services agency. 25 The bill provides for a follow-up progress report regarding 26 students who had participated in the program by January 1, 27 2013. 28 The bill provides that implementation of the program shall 29 be contingent upon an appropriation to fund the costs of the 30 program for the fiscal year beginning July 1, 2011, and ending 31 June 30, 2012. 32 The bill takes effect upon enactment. 33 -6- LSB 2235XS (4) 84 je/rj 6/ 6