HB 1280

HB 1280-LOCAL - AS AMENDED BY THE SENATE

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5/21/98 1693s

5/21/98 1849s

1998 SESSION

98-2589

04/08

HOUSE BILL 1280-LOCAL

AN ACT implementing the Advancing Better Classrooms program to provide a constitutionally adequate public education to all the children of New Hampshire.

SPONSORS: Rep. MacGillivray, Hills 21; Rep. Christie, Rock 22

COMMITTEE: Education

AMENDED ANALYSIS

I. Establishes the criteria necessary for an adequate education.

II. Creates a methodology for calculating the per pupil cost of an adequate education.

III. Requires each school district to prepare and implement a local education improvement assessment program.

IV. Establishes a special projects and district improvement fund to provide grants to school districts that meet or exceed quality standards.

V. Establishes a formula for the distribution of state grants to be funded, in part, by a state education tax on property and sweepstakes revenues.

VI. Establishes a commission to study costs of providing an adequate education and methods of distributing grants to municipalities.

VII. Establishes a commission to study special education issues.

VIII. Repeals the nuclear station property tax and foundation aid and alternative foundation aid.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [~~in brackets and struckthrough.~~]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

5march98.....0435h

5/21/98 1693s

5/21/98 1849s

98-2589

04/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord One Thousand Nine Hundred and Ninety-Eight

AN ACT implementing the Advancing Better Classrooms program to provide a constitutionally adequate public education to all the children of New Hampshire.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Preamble.

In December 1997, the New Hampshire supreme court declared that the right to an adequate education is a fundamental right of all New Hampshire children. Furthermore, the supreme court determined that it is the state's duty to define and to provide a constitutionally adequate education. The supreme court held that, under part II, article 5, of the New Hampshire constitution, all taxes levied by the state, with respect to funding a constitutionally adequate education, must be proportional in substance and just and reasonable in application. The supreme court reaffirmed that, under the principles of separation of powers, the legislature has wide latitude in choosing the means by which the funding of a constitutionally adequate education is to be achieved.

An educated populace is essential to the long-term health and prosperity of the state. Recognizing that it is the state's obligation to provide a constitutionally adequate education, this act establishes a framework to ensure that the children of New Hampshire will have the opportunity to acquire the knowledge and skills necessary to prepare them for successful participation in society.

Local control of public schools is the best method of ensuring parental and community involvement in the education of the children of New Hampshire. The use of property value as a base for the calculation of the contribution of New Hampshire citizens to support their schools encourages and nurtures local and parental interest and participation in the education of children. That participation is a crucial component of effective schools. The roles of the state board of education and the state department of education are to work with local officials, parents, and other members of the community to ensure that the public schools provide children with the best education possible.

The use of the total statewide equalized value of real property is reasonable to establish the base rate of a tax on property to fund a constitutionally adequate education for all public school students of the state. Any legislative application of the supreme court's decision that uses real property taxed at an equal base rate must, in order to be just and reasonable, include a constitutionally valid state tax policy which incorporates and provides exemptions for the elderly, veterans, the legally blind, and the totally and permanently disabled; abatements to avoid inequitable tax burdens; and assessments for current use to support the conservation of our precious land. Rational exceptions dictated by sound public policy will minimize the effect of the single tax rate and will avoid undue and unjust burdens on New Hampshire's citizens.

Furthermore, the state recognizes that the provision of a constitutionally adequate education to the children in the cities and towns whose property base is insufficient to support the funding of such an education is an obligation of all citizens of the state of New Hampshire, and not solely the responsibility of the citizens of those cities and towns whose property base is more than sufficient to provide such an education. Accordingly, this act provides state grants in order to ensure each child a constitutionally adequate education funded in a just, fair, and reasonable manner.

2 New Chapter; Providing Constitutionally Adequate Public Education to All the Students of New Hampshire. Amend RSA by inserting after chapter 193-D the following new chapter:

CHAPTER 193-E

ADVANCING BETTER CLASSROOMS

193-E:1 Policy and Purpose.

I. It is the policy of the state of New Hampshire that public elementary and secondary education shall provide all students with the opportunity to acquire the knowledge and skills necessary to prepare them for successful participation in the social, economic, scientific, technological, and political systems of a free government, now and in the years to come; an education that is consistent with the curriculum and student proficiency standards specified in state school approval rules and New Hampshire curriculum frameworks.

II. Respecting New Hampshire's long tradition of community involvement, it is the purpose of this chapter to ensure that appropriate means are established to provide a constitutionally adequate education through an integrated system of shared responsibility between state and local government. In this system, the state establishes, through school approval and student proficiency standards and curriculum guidelines, the framework for the delivery of educational services at the local level. School districts then have flexibility in implementing diverse educational approaches tailored to meet student needs.

193-E:2 Criteria for a Constitutionally Adequate Education. A constitutionally adequate education shall provide all students with the opportunity to acquire:

I. Skill in reading, writing, and speaking English to enable them to communicate effectively and think creatively and critically.

II. Skill in mathematics and familiarity with methods of science to enable them to analyze information, solve problems, and make rational decisions.

III. Knowledge of the biological, physical, and earth sciences to enable them to understand and appreciate the world around them.

IV. Knowledge of civics and government, economics, geography, and history to enable them to participate in the democratic process and to make informed choices as responsible citizens.

V. Grounding in the arts, languages, and literature to enable them to appreciate our cultural heritage and develop lifelong interests and involvement in these areas.

VI. Sound wellness and environmental practices to enable them to enhance their own well-being, as well as that of others.

VII. Skills for lifelong learning, including interpersonal and technological skills, to enable them to learn, work, and participate effectively in a changing society.

193-E:3 Methodology for Calculating the Per Pupil Cost of an Adequate Education.

I. In this section:

(a) "Total statewide aggregated cost" means the total of the costs of delivering an adequate education at the elementary school level as calculated in subparagraph II(a).

(b) "Adjusted total statewide aggregated cost" means the total statewide aggregated cost at the elementary school level adjusted by deducting certain revenue as explained in subparagraph II(b).

(c) "Statewide total average daily membership in residence" means the state total number of students as calculated in RSA 189:1-d, IV.

(d) "Elementary school" has the same meaning as in RSA 189:25.

(e) "Recognized middle or junior high school" has the same meaning as in RSA 189:25.

(f) "High school" has the same meaning as in RSA 194:23.

II.(a) For the biennium beginning July 1, 1999, the department of education shall calculate the statewide per pupil cost of an adequate education at the elementary school level based on district-level financial information reported to the department of education for the 1996-1997 school year and aggregated for the state as a whole. The cost factors to be aggregated shall be: instruction, including regular, special, and vocational education; pupil support services; instructional support services; other support services; operations and maintenance of plant; and administrative costs capped at 8 percent of the total costs. This amount shall be designated the total statewide aggregated cost. The following formula represents this calculation:

Total statewide aggregated cost = [total cost of instruction + total cost of pupil support services + total cost of instructional support services + other support services + total cost of operations and maintenance of plant] ÷ 0.92.

(b)(1) The total statewide aggregated cost shall be adjusted by deducting the amount of the following revenues attributable to the elementary school level:

(A) Tuition fees counted as revenue by receiving districts.

(B) Other revenue from local sources, except food service revenue and sale of fixed food service assets.

(C) Revenue from state except for foundation aid, school building aid, vocational school transportation, vocational school building, and child nutrition.

(D) Cost of operating restricted federal grant programs except child nutrition deducted on the basis of revenue.

(E) Unrestricted grants and other revenue from the federal government.

(2) This amount shall be designated the adjusted total statewide aggregated cost. The following formula represents this calculation:

Adjusted total statewide aggregated cost = total statewide aggregated cost - [tuition fees + other revenue from local sources except food service revenue and sale of fixed food service assets + revenue from state except for foundation aid, school building aid, vocational school transportation, vocational school building, and child nutrition + revenue from federal sources except revenue for child nutrition].

(c) The statewide per pupil cost of an adequate education at the elementary school level for the biennium shall be calculated by dividing the adjusted total statewide aggregated cost by the state total average daily membership in residence at the elementary school level calculated by the department of education for the 1996-1997 school year. The following formula represents this calculation:

Statewide per pupil cost of an adequate education at the elementary school level = adjusted total statewide aggregated cost ÷ statewide average daily membership in residence at the elementary school level.

III. For each subsequent biennium, the statewide per pupil cost of an adequate education at the elementary school level shall be adjusted by the change in the New England Consumer Price Index.

IV. In calculating the state education tax rate pursuant to RSA 76:3-a and in determining the state grants to municipalities for education under RSA 193-E:7, the average daily membership in residence shall be adjusted in accordance with the weights calculated by the department of education which reflect the proportional costs determined using the same cost factors and methodology provided in paragraph II for educating students at the elementary, recognized middle or junior high, and high school levels.

V.(a) The governing body of each school district or the board of trustees of approved public academies shall ensure that the information needed by the department of education, as specified in RSA 198:4-d and RSA 189:28, to calculate the statewide per pupil cost of an adequate education is submitted to the department of education and to the department of revenue administration on or before September 1 of each year.

(b) When a school district is audited by an independent public accountant, the information required under this section shall be reviewed during the school district's annual audit and shall be commented on by the auditor.

VI. The commissioner of the department of education shall report the figures for the statewide per pupil cost of an adequate education, the statewide average daily membership in residence, and the average daily membership in residence for each municipality to the commissioner of the department of revenue administration by December 1 of each year.

193-E:4 Delivery of a Constitutionally Adequate Education. In order to implement New Hampshire's policy of providing all students with the opportunity to acquire a constitutionally adequate education, each school district shall implement the following quality standards:

I. By June 30, 2000, and every 3 years thereafter, each school district, through a process involving parents, teachers, employers, and other community members, shall prepare and implement a local education improvement and assessment plan and file such plan with the department of education. The department of education shall comment to the district on the plan in a timely fashion. Districts may reference the statewide education improvement and assessment plan established in RSA 193-E:5, I, in preparing the district plan. At a minimum, the plan shall include:

(a) Curriculum and achievement standards for all students.

(b) School and district performance goals based on reported data on educational indicators listed in paragraph II.

(c) Procedures for aligning curriculum, instructional practices, and student and programmatic assessments, including annual reporting of results.

(d) Local assessment measures which focus on individual student performance.

(e) Role of support services and programs.

(f) Role of instructional leadership.

(g) Strategies to promote family and community involvement.

(h) Staff supervision and evaluation and performance-based professional development.

II. By April 1, 2000, and annually thereafter, each school district shall report to the department of education its data for the previous 12 months on its school and district performance indicators. The requirements for data keeping and the form of the report shall be established in accordance with rules adopted by the state board of education.

(a) Performance indicators shall include the following areas:

(1) Attendance and drop-out rates.

(2) School environment indicators, such as safe-schools data.

(3) Proportion of graduating students going on to post-secondary education, military service, and the workplace.

(4) Performance on state tests administered pursuant to RSA 193-C and other standardized tests administered at local option.

(b) In addition, local districts shall report on locally developed performance indicators and assessment measures.

(c) These indicators and assessment measures shall be reported along with other data collected and analyzed by the department of education in the annual report on the condition of education established in paragraph V.

III. Each elementary, middle, junior high, and/or high school in the school district shall meet the standards for school approval adopted by the state board of education.

IV. Beginning December 1, 2001, and annually thereafter, the commissioner of education shall determine the extent to which each school district is meeting the quality standards established in paragraphs I, II, and III. Any school district that does not meet the quality standards shall be designated by the commissioner of education as a district in need of assistance. The commissioner of education, annually, shall provide a report of such determinations to the department of revenue administration.

V. No later than December 1, 2000, and annually thereafter, the department of education shall issue a report on the condition of education statewide and on a district-by-district and school-by-school basis. This report shall include demographic and student performance data including, but not limited to, school and district performance on state tests administered pursuant to RSA 193-C, other standardized tests administered at local option by at least 25 percent of school districts, data provided under paragraph II, as well as other relevant statistics. Comparisons with state averages and with the condition of each district and school in comparison with previous years shall be provided, including, but not limited to, statewide rankings of each district and school on the state tests administered pursuant to RSA 193-C and on other standardized tests administered at local option by at least 25 percent of school districts. The report shall be organized and presented in a manner that is easily understood by the public and that assists each school district with the identification of trends, strengths, and weaknesses and the development of its local education improvement and assessment plan.

VI. Within 45 days of the issuance of the annual report on the condition of education, each school district shall provide an opportunity for public discussion of the report at a meeting of the governing body called for the exclusive purpose of reviewing the report. At least 7 days advance public notice shall be given.

VII. A school district that meets or exceeds the quality standards shall receive formal recognition from the state board of education and the governor. Any school district, school, or teacher that demonstrates a best practice worthy of recognition shall also receive formal recognition from the state board of education and the governor. Such school districts, schools, or teachers may be eligible to receive funds from a special projects and district improvement fund administered by the department of education. Such funds shall be used to disseminate best practices throughout the state.

VIII.(a) A school district, in response to the annual report on the condition of education, may request from the department of education the assistance available under paragraph IX.

(1) If a school district requesting assistance has not been designated as a school district in need of assistance pursuant to paragraph IV, then the assistance requested under this section and provided by the department of education shall be based on availability of resources as determined by the commissioner of education.

(2) If a school district requesting assistance has been designated as a district in need of assistance, then that school district shall receive the assistance it requests from the department of education in accordance with subparagraph IX(a)(3).

(b) If a school district has received notice pursuant to paragraph XI, then that school district shall receive assistance from the department of education in accordance with subparagraph IX(a)(3).

IX. The department of education and the state board of education shall work cooperatively with either a school district requesting assistance or a school district designated as a district in need of assistance as follows:

(a)(1) Within one month of a school district's request for assistance pursuant to subparagraph VIII(a)(1), the commissioner of education may appoint a quality assurance team to review the educational programming and effectiveness of the school district. In cooperation with local officials, the team shall prepare and present a report at a regularly scheduled public meeting of the local school board and to the state board of education. This report shall be issued within 4 months of the team's appointment. Based on this report, the local school board and superintendent shall, within 6 months of the issuance of the report, prepare a corrective action plan and submit it to the state board of education for approval. The school district may decide to implement its corrective action plan on its own, through the use of a technical assistance advisor, or through the use of a peer review team. Any such decision shall be included in the corrective action plan.

(2) Within one month of a school district's request for assistance pursuant to subparagraph VIII(a)(2), the commissioner of education shall appoint a quality assurance team to review the educational programming and effectiveness of the school district. In cooperation with local officials, the team shall prepare and present a report at a regularly scheduled public meeting of the local school board and to the state board of education. This report shall be issued within 4 months of the team's appointment. Based on this report, the local school board and superintendent shall, within 6 months of the issuance of the report, prepare a corrective action plan and submit it to the state board of education for approval. The school district may decide to implement its corrective action plan on its own, through the use of a technical assistance advisor, or through the use of a peer review team. Any such decision shall be included in the corrective action plan.

(3) Within one month of the issuance of a notice to a school district pursuant to paragraph XI, the commissioner of education shall appoint a quality assurance team to review the educational programming and effectiveness of the school district. In cooperation with local officials, the team shall prepare and present a report at a regularly scheduled public meeting of the local school board and to the state board of education. This report shall be issued within 4 months of the team's appointment. Based on this report, the local school board and superintendent shall, within 6 months of the issuance of the report, prepare a corrective action plan and submit it to the state board of education for approval. The school district may decide to implement its corrective action plan on its own, through the use of a technical assistance advisor, or through the use of a peer review team. Any such decision shall be included in the corrective action plan. If the state board of education does not approve a corrective action plan, then the commissioner of education shall work with the school district to revise its corrective action plan. If the school district fails to revise its corrective action plan or the state board of education does not approve the revised corrective action plan, then the commissioner of education shall submit a corrective action plan, including methods for implementing it, to the state board of education for approval without further action of the school district.

(b) If an approved corrective action plan includes the use of a technical assistance advisor, then the commissioner of education shall appoint a technical assistance advisor who is authorized to access the state special projects and district improvement fund to provide assistance to the local school district staff in the implementation of the corrective action plan until the goals of the corrective action plan are met.

(c) If an approved corrective action plan includes the use of a peer review team, then the commissioner of education shall name a peer review team consisting of an appointee of the local school district, an appointee of the state board of education, and a third member chosen by the local and state appointees to advise the school district's superintendent and the local school board relative to the implementation of the corrective action plan until the goals of the corrective action plan are met.

X. If, by the time of the annual school district meeting in a town or by April 30 in a city, the governing body of a school district that has been designated a district in need of assistance in accordance with paragraph IV has not submitted a request for assistance under paragraph VIII, then the legislative body of the school district may vote to direct the governing body to submit a request for assistance under paragraph VIII. If a majority of the legislative body votes in favor of requesting assistance, then that assistance shall be requested and provided in accordance with paragraphs VIII and IX.

XI. A school district shall have one year from the date of the designation as a district in need of assistance pursuant to paragraph IV to remedy identified problems at the local level. If a school district is designated as a district in need of assistance and that school district does not request assistance under paragraph VIII within one year of that designation, then on December 1 of the year following the designation, if that school district continues to be designated as a district in need of assistance, the commissioner of education shall issue a notice to that school district and shall initiate a process for assistance pursuant to subparagraph IX(a)(3), without further action of the school district.

XII. School districts are authorized to dedicate additional resources to schools and to develop educational programs beyond those required for a constitutionally adequate public education.

XIII. Nothing in this chapter shall be construed to entitle any student to educational programs or services identical to those received by students in the same or any other school district.

193-E:5 Assistance to Local School Districts. In order to assist local school districts, the department of education shall implement the following:

I. By June 30, 2000, and every 3 years thereafter, the state board of education shall review and update the statewide education improvement plan developed in accordance with RSA 193-C that describes how the department of education will help schools and school districts improve student achievement, through a process that provides opportunities for public input from parents, employers, educators, and other citizens. The plan shall include goals and strategies for the delivery of technical assistance and professional development, the sharing of best practices, the modification or expansion of existing programs, and the establishment of new programs.

II.(a) Notwithstanding any other provision of law, no later than June 30, 2001, and every 5 years thereafter, the state board of education shall review and update school approval standards based on input from parents, employers, educators, and other citizens.

(b) The state board of education shall work with a joint select committee of the house and senate education committees, whose members shall be appointed by the speaker of the house and the president of the senate, to identify amendments that should be made to the school approval standards to reflect the provisions of RSA 193-E. Further, any proposed amendments should be reviewed by the house and senate education committees, which may submit comments on the proposed amendments to the state board of education. The state board of education shall consider such comments in revising proposed amendments to the school approval standards.

III. Beginning no later than January 1, 1999, the commissioner of education shall ensure that the state curriculum frameworks adopted pursuant to RSA 193-C shall be reviewed on a staggered, 5-year cycle such that no more than 2 frameworks are being reviewed at the same time.

IV. No later than June 30, 1999, the state board of education shall adopt rules establishing the requirements for data keeping and the form of the report as required in RSA 193-E:4, II.

V. No later than December 1, 2001, the state board of education shall adopt rules for the approval of corrective action plans as required in RSA 193-E:4, IX(a).

VI. The department of education shall implement credible procedures to review compliance with school approval standards.

VII. A special projects and district improvement fund shall be established in the department of education and continually appropriated to the department. The department of education shall use moneys appropriated for this fund to provide grants pursuant to RSA 193-E:4, VII. The department of education shall also use moneys appropriated for this fund to support the implementation of corrective action plans. The technical assistance advisor assigned to work in these school districts shall be authorized to access this fund in accordance with procedures established by the department of education.

193-E:6 Definition. As used in RSA 193-E:7-9, "municipality" means a city, town, or unincorporated place.

193-E:7 State Grants to Municipalities for Education.

I. Except for municipalities that constitute school districts which provide education to their pupils by paying tuition to other institutions, the state shall pay annually to each municipality an amount of money that is the greater of zero and the average daily membership in residence for the municipality determined pursuant to RSA 189:28 times the statewide per pupil cost of an adequate education at the elementary school level as adjusted pursuant to RSA 193-E:3, IV minus the amount of state education tax apportioned to it pursuant to RSA 76:8.

II. For municipalities that constitute school districts which provide education to their pupils by paying tuition to other institutions, the state shall pay annually to each municipality the lesser of the following 2 calculations:

(a) The amount calculated in accordance with paragraph I; and

(b) The total amount paid for items of current education expense minus the amount of state education tax apportioned to the municipality pursuant to RSA 76:8; provided, however, that the amount shall not be less than zero.

193-E:8 Commissioner's Report; Appropriation; Timing of Payments.

I. The commissioner of revenue administration shall report to the governor, the house of representatives, and the senate, on or before the February 1 immediately preceding the beginning of a biennium, the amount to be paid to each municipality pursuant to RSA 193-E:7.

II. The general court is constitutionally obligated to fund the cost of an adequate education, and there are hereby appropriated the funds necessary to make the payments required by RSA 193--E:7. The governor is authorized to draw a warrant for such sums out of any money in the treasury not otherwise appropriated.

III. The payments required by RSA 193-E:7 shall be made over the biennium in 4 approximately equal installments. Installment payments shall be made on or before November 1 and April 1 of each year of the biennium.

IV. The payments required under RSA 193-E:7 shall be made to the municipalities. Each municipality receiving a payment shall, within 10 days of receipt, pay the money over to the municipality's school district or districts.

193-E:9 Use of Funds for Education Purposes.

I. Annually, each school district shall appropriate an amount that equals or exceeds the amount necessary to fund a constitutionally adequate education for the pupils in that district, as determined under RSA 193-E:3. Notwithstanding any other provision of law, in the event a school district fails to appropriate at least the required amount, that amount shall be assessed and collected by the municipality, paid over to the school district, appropriated to the school district and expended for educational purposes in accordance with paragraph IV without a vote of the school district.

II. On or before June 30 of each year, the individual with fiscal responsibility in each municipality shall submit a statement to the commissioner of education that the funds collected by the municipality pursuant to RSA 76:8 and the funds received from the state pursuant to RSA 193-E:7 have been paid over to the municipality's school district or districts and have not been used for any other purpose except as provided in paragraph IV. The statement shall include the following: "I certify, under the pains and penalties of perjury, that all of the information contained in this document is true, accurate, and complete."

III. If a municipality uses any part of the funds collected pursuant to RSA 76:8 and received pursuant to RSA 193-E:7 for non-educational purposes, the municipality shall pay to the school district an amount equal to the portion of funds used for such non-educational purposes.

IV. The funds collected by municipalities pursuant to RSA 76:8 and the funds received from the state pursuant to RSA 193-E:7 shall be appropriated by a school district only for current education expenses or transfers to reserves or trust funds and shall not be used for any other purpose.

V. On or before June 30 of each year, the individual with fiscal responsibility in each school district shall submit a statement to the commissioner of education that an amount of money that equals the amount necessary to fund an adequate education for the pupils in that district as determined under RSA 193-E:3 was used in accordance with paragraph IV. The statement shall include the following: "I certify, under the pains and penalties of perjury, that all of the information contained in this document is true, accurate, and complete."

193-E:10 Legislative Oversight Committee.

I. An oversight committee shall be established consisting of:

(a) The chairperson of the house education committee, or a designee.

(b) The chairperson of the senate education committee, or a designee.

(d) One member of the senate, appointed by the senate president.

(e) One member of the house finance committee, appointed by the speaker of the house.

(f) One member of the senate finance committee, appointed by the senate president.

II. The chair of the oversight committee shall rotate biennially between the chairperson of the house education committee and the chairperson of the senate education committee. The first chairperson shall be the chairperson of the house education committee. A member shall only serve while a member of the general court. The members shall not be compensated but shall receive mileage at the legislative rate when carrying out their duties.

III. The oversight committee shall examine the goals, purposes, organization, operation, and financing of the state's program to provide a constitutionally adequate education, and it shall evaluate and make recommendations for the continued provisions and improvement of the program.

IV. The oversight committee shall review the development and implementation of the program to ensure that they are in accordance with legislative policy.

V. The oversight committee shall submit a report to the general court by June 30, of each even-numbered year. Copies of the report shall be submitted to the governor, the senate finance and education committees, the house finance and education committees, the department of education, the department of revenue administration and to any other individual or organization as the committee deems advisable.

3 Creation of a Commission to Study Costs of Providing an Adequate Education and Methods of Distributing Grants to Municipalities.

I. Within 14 days after the effective date of this section, a commission shall be established to undertake a rigorous and complete review of both the methodology used to calculate the cost of a constitutionally adequate education and the formula used to distribute grants to municipalities. The department of justice shall provide the commission with such legal assistance as the commission deems necessary.

II. The issues considered shall include, but not be limited to, education system delivery efficiencies and geographic and demographic factors.

III.(a) The voting members of the commission shall be:

(1) Three members of the house of representatives, appointed by the speaker of the house.

(2) Three members of the senate, appointed by the president of the senate.

(3) Three individuals appointed by the governor.

(b) The nonvoting members of the commission shall be:

(1) The commissioner of the department of education, or designee.

(2) The commissioner of the department of revenue administration, or designee.

IV. The commission shall issue its report and recommendation to the speaker of the house, the senate president, the house clerk, the senate clerk, the state library, and the governor no later than December 1, 1998. Any legislative changes to the cost methodology or the method for distributing the state grants for education under RSA 193-E:7 shall be implemented for the fiscal year beginning July 1, 2000.

V. The sum of $50,000 for the fiscal year ending June 30, 1999, is hereby appropriated for the purposes of this section. The governor is authorized to draw a warrant for this sum out of any money in the treasury not otherwise appropriated.

4 Creation of a Commission to Study Special Education Issues.

I. Within 14 days after the effective date of this section, a commission shall be established to review and analyze special education issues. Such issues shall include, but not be limited to, identification of students with disabilities, delivery of special education and educationally-related services, unique needs or circumstances of individual districts, and costs and funding of services. The department of justice shall provide the commission with such legal assistance as the commission deems necessary.

II.(a) The voting members of the commission shall include:

(1) Three members of the house of representatives, appointed by the speaker of the house.

(2) Three members of the senate, appointed by the president of the senate.

(3) Three individuals appointed by the governor.

(b) The commissioner of the department of education, or designee, shall serve as a nonvoting member of the commission.

III. The commission's final report shall be filed with the speaker of the house, the senate president, the senate clerk, the house clerk, the state library, and the governor by December 1, 1998.

IV. The sum of $5,000 for the fiscal year ending June 30, 1999, is hereby appropriated for the purposes of this section. The governor is authorized to draw a warrant for this sum out of any money in the treasury not otherwise appropriated.

5 Interim State Grants to Municipalities for Education.

I. Notwithstanding the calculation for the state grants to municipalities for education in RSA 193-E:7 and in lieu thereof, for the fiscal year beginning July 1, 1999, distributions shall be made pursuant to this section and RSA 198:36.

II. The distribution provided for in paragraph I shall be paid at the time provided for under RSA 198 and shall be in lieu of the amounts provided therein.

III. No municipality shall receive less money under the distribution provided for in paragraph I than it would under the foundation aid formula funded at the level provided for in fiscal year 1999.

IV. No expenditure of funds received by a municipality under paragraph I in excess of the level provided for in the state biennial budget for the fiscal years 1998-1999 shall be made unless approved by the legislative body of the local school district to which such funds are apportioned. Notwithstanding RSA 197:3, a special school district meeting may be held pursuant to RSA 197:2 for this purpose without court approval.

V. There are hereby appropriated the funds necessary to make the payments required under this section. The governor is authorized to draw a warrant for such sums out of any money in the treasury not otherwise appropriated.

6 Commission Study Concerning Public School Facilities and the Distribution of Building Aid. By July 1, 1999, the state board of education shall commission a statewide qualitative study to determine the adequacy and condition of all New Hampshire public school facilities and to review the current method for distributing school building aid. Based on this study, the board shall make recommendations to the legislature and the governor by September 1, 2000.

7 Transition During Fiscal Year Beginning July 1, 2000. For the fiscal year beginning July 1, 2000, if the foundation aid apportioned to a municipality for fiscal year 1999 under RSA 198:27 through RSA 198:37 exceeds the amount calculated under RSA 193-E:7, the amount paid to that municipality in each year shall be the fiscal year 1999 foundation aid apportionment.

8 Repeal. RSA 198:27 through 198:37, relative to foundation aid and alternative foundation aid, are repealed.

9 State Education Tax. RSA 76:3 is repealed and reenacted to read as follows:

76:3 State Education Tax. An annual state education tax at the rate specified for the biennium in RSA 76:3-a is hereby imposed on all persons and property taxable pursuant to RSA 72 and 73, except such property subject to tax under RSA 82.

10 New Section; State Education Tax Rate. Amend RSA 76 by inserting after section 3 the following new section:

76:3-a State Education Tax Rate. The state education tax rate for each biennium shall be that calculated by the commissioner of revenue administration pursuant to the authority granted in RSA 21-J:35, I-a. Such rate shall be calculated by the commissioner on or before December 15 of the year immediately preceding the biennium.

11 What Taxes Assessed. Amend RSA 76:5 to read as follows:

76:5 What Taxes Assessed. The selectmen shall seasonably assess all state and county taxes for which they have the warrants of the [~~state~~] commissioner of revenue administration and county treasurers respectively; all taxes duly voted in their towns; and all school[~~, schoolhouse,~~] and village district taxes authorized by law or by vote of any school or village district duly certified to them; and all sums required to be assessed by RSA 33.

12 Commissioner's Warrant. RSA 76:8 is repealed and reenacted to read as follows:

76:8 Commissioner's Warrant.

I. The commissioner of revenue administration shall calculate for the biennium the proportion of state education tax to be raised by each town by multiplying the state education tax rate by the total equalized value of all property in the town as determined under RSA 21-J:3, XIII, and used to calculate the biennial rate.

II. The commissioner shall issue a warrant under the commissioner's hand and official seal for the amount computed in paragraph I, less any amount specially abated according to RSA 76:16-e, to the selectmen of each town on or before September 1 directing them to assess such sum and pay to the town for the use of the school district or districts such sums and at such times as may be prescribed for other taxes assessed by such selectmen.

13 Commissioner's Report. RSA 76:9 is repealed and reenacted to read as follows:

76:9 Commissioner's Report. The commissioner of revenue administration shall report to the governor, the house of representatives, and the senate, each year on or before October 1, a statement of the state education tax warrants issued for the previous year.

14 Information Required. Amend RSA 76:11-a, I to read as follows:

I. The tax bill which is sent to every person taxed, as provided in RSA 76:11, shall show the rate for municipal, [~~school~~] local education, state education, and county taxes separately, the assessed valuation of all lands and buildings for which said person is being taxed, and the right to apply in writing to the selectmen or assessors for an abatement of the tax assessed as provided under RSA 76:16. The department of revenue administration shall compute for each town and city the rates which are to appear on the tax bills and shall furnish the required information to the appropriate town or city.

15 New Section; Special Abatement. Amend RSA 76 by inserting after section 16-d the following new section:

76:16-e Special Abatement. The amount of state education tax apportioned to each town pursuant to RSA 76:8, I, in excess of the product of the statewide per pupil cost of an adequate education at the elementary school level times the average daily membership in residence for the town determined pursuant to RSA 189:28, as adjusted pursuant to RSA 193-E:3, IV, shall be abated by the commissioner in each year of assessment.

16 Statistical Reports. Amend RSA 189:28 to read as follows:

189:28 Statistical Reports. School boards of every school district or city, and the board of trustees of approved public academies, shall, on or before September 1 in each year, submit to the department of education those statistical reports necessary to compute the average daily membership of pupils attending each school district, and the average daily membership of pupils resident in each school district. Information relating to the [~~operation of each school district~~] fall enrollment, teacher and administrator census, and average teacher salary, as of October 1 of each school year, shall be submitted to the department of education on or before October 15. Each statistical report submitted under this section shall include a certification, signed by the superintendent of the school district, that states: "I certify, under the pains and penalties of perjury, that all of the information contained in this document is true, accurate, and complete." The statistical report shall also include a certification, signed by the chairperson of the school district's governing body or the chairperson of the board of trustees of approved public academies, that states: "I certify, that, to the best of my knowledge, all of the information contained in this document is true, accurate, and complete."

17 Reports Required. Amend RSA 198:4-d, III to read as follows:

III. A financial report for each city and school district shall be filed showing the summary of receipts and expenditures, according to uniform classifications, during the preceding fiscal year, and a balance sheet showing assets and liabilities at the close of the year. This report shall be submitted on or before September 1 of each year[~~, unless the filing date is extended by the commissioner of education for just cause. Failure to file may subject the noncomplying city or school district to the penalty provided in RSA 198:4-f~~]. Each statistical report submitted under this section shall include a certification signed by the chairperson of the school district's governing body or the chairperson of the board of trustees of approved public academies that states: "I certify, under the pains and penalties of perjury, to the best of my knowledge and belief, that all of the information contained in this document is true, accurate and complete."

18 New Paragraph; School Accounting Standards. Amend RSA 198:4-d by inserting after paragraph III the following new paragraph:

III-a. The department of education and the department of revenue administration together shall develop and recommend school accounting standards. The departments shall report to the speaker of the house, the senate president, and the governor concerning such accounting standards on or before December 1, 1999.

19 Copies of Audited Financial Statements. Amend RSA 198:4-d, V to read as follows:

V. [If] When a city or school district is audited by an independent public accountant, it shall submit a copy of the audited financial statements in accordance with RSA 21-J:19, III and RSA 193-E:3, V(b).

20 Gender Reference Change. Amend the introductory paragraph of RSA 21-J:3 to read as follows:

In addition to the powers, duties, and functions otherwise vested by law, including RSA 21-G, in the commissioner of the department of revenue administration, [he] the commissioner shall:

21 Duties of Commissioner. Amend RSA 21-J:3, V to read as follows:

V. Exercise general supervision over the administration of the assessment and taxation laws of the state, the appraisal for ad valorem taxation purposes of property within the state, and over all assessing officers in the performance of their duties, except the board of tax and land appeals, to the end that all assessments of property be made in compliance with the laws of the state.

22 Duties of Commissioner. Amend RSA 21-J:3, XIII to read as follows:

XIII. Equalize annually the valuation of the property in the several towns, cities, and unincorporated places in the state by adding to or deducting from the aggregate valuation of the property [~~as assessed~~] in towns, cities, and unincorporated places such sums as will bring such valuations to the true and market value of the property, including the equalized value of property formerly taxed pursuant to the provisions of RSA 72:7; 72:15, I, V, VII, VIII, IX, X, and XI; 72:16; 72:17; 73:26; 73:27; and 73:11 through 16 inclusive, which were relieved from taxation by the laws of 1970, 5:3; 5:8; 57:12; and 57:15, the equalized valuation of which is to be determined by the amount of revenue returned in such year in accordance with RSA 31-A, and by making such adjustments in the value of other property from which the towns, cities, and unincorporated places receive taxes or payments in lieu of taxes as may be equitable and just, so that any public taxes that may be apportioned among them shall be equal and just. In carrying out the duty to equalize the valuation of property, the commissioner shall follow the procedures set forth in RSA 21-J:9-a.

23 New Paragraph; Duties of Commissioner. Amend RSA 21-J:3 by inserting after paragraph XXIV the following new paragraph:

XXV. Petition the board of tax and land appeals to issue an order for reassessment of property pursuant to the board's powers under RSA 71-B:16 - 19 whenever, in the commissioner's belief, the valuation of property for equalization purposes in a particular city, town, or unincorporated place is disproportional to the valuation for equalization purposes in other cities, towns, or unincorporated places in the state.

24 Division of Property Appraisal; Department of Revenue Administration. RSA 21-J:9 is repealed and reenacted to read as follows:

21-J:9 Division of Property Appraisal. There is established within the department the division of property appraisal, under the supervision of a classified director of property appraisal who shall be responsible for the following functions, in accordance with applicable laws:

I. Assisting and supervising municipalities and appraisers in appraisals and valuations as provided in RSA 21-J:10 and RSA 21-J:11.

II. Appraising state-owned forest and recreation land under RSA 227-H and RSA 216-A.

III. Annually determining the total equalized valuation of properties in the cities and towns and unincorporated places according to the requirements of RSA 21-J:9-a.

IV. Preparing a standard appraisal manual which may be used by assessing officials, and holding meetings throughout the state with such officials to instruct them in appraising property.

25 New Section; Equalization Procedure. Amend RSA 21-J by inserting after section 9 the following new section:

21-J:9-a Equalization Procedure. The following procedures shall apply in determining the equalization of property within the cities, towns, and unincorporated places as required by RSA 21-J:3, XIII:

I. The commissioner shall annually conduct a sales-assessment ratio study which shall include arm's length sales or transfers of property that occurred 6 months prior to and 6 months following April 1 of the tax year for which such equalization is made.

II. In determining the arm's length sales or transfers that are included in the sales-assessment ratio study, the commissioner may use a randomly selected sample of such sales and transfers the size of which shall be determined by the total taxable parcels in the city, town, or unincorporated place.

III. If less than 2 percent of the total taxable parcels in a city, town, or unincorporated place has been transferred by an arm's length sale or transfer during the 6 months prior to and 6 months following April 1 of the tax year for which such equalization is made, the commissioner may choose one or more of the following options:

(a) Include appraisals of any of the taxable property of such city, town, or unincorporated place in the sales-assessment ratio study. Such appraisals shall be based on full and true market value pursuant to RSA 75:1 and shall be performed by department appraisers. The property to be appraised shall be selected by the commissioner.

(b) Consider recent equalization ratio activity in adjoining cities, towns, or unincorporated places.

(c) Include arm's length sales or transfers in the city, town, or unincorporated place, within 2-1/2 years preceding April 1 of the year preceding the tax year for which such equalization is made.

IV. The commissioner shall use the inventory of property transfers authorized by RSA 74:18 in determining the equalized value of property and may consider such other evidence as may be available to the commissioner on or before the time the final equalized value is determined.

26 Appraisals of Property for Ad Valorem Tax Purposes. RSA 21-J:11 is repealed and reenacted to read as follows:

21-J:11 Appraisals of Property For Ad Valorem Tax Purposes.

I. Every person, firm, or corporation intending to engage in the business of making appraisals on behalf of a municipality for tax assessment purposes in this state shall notify the commissioner of that intent in writing. No person, firm, or corporation engaged in the business of making appraisals of taxable property for municipalities and taxing districts shall enter into any contract or agreement with any town, city, or other governmental division without first submitting the proposed contract or agreement to the commissioner for examination and approval and submitting to the commissioner evidence of financial responsibility and professional capability of personnel to be employed under the contract.

II. The commissioner, at no expense to the municipality, shall monitor appraisals of property and supervise appraisers as follows:

(a) Assure that appraisals comply with all applicable statutes and rules;

(b) Assure that appraisers are complying with the terms of any appraisal contract;

(c) Review the accuracy of appraisals by inspection, evaluation, and testing, in whole or in part, of data collected by the appraisers; and

(d) Report to the governing body on the progress and quality of the municipality's appraisal process.

III. The commissioner shall adopt rules under RSA 541-A relative to the provisions required of all contracts for appraisal services and the methodology for inspection, evaluation, and testing of data for the purposes of appraisal monitoring.

27 Reports Required. Amend the introductory paragraph of RSA 21-J:34 to read as follows:

The governing body of each city, town, unincorporated town, unorganized place, school district, and village district, and the clerk of each county convention shall submit to the commissioner of revenue administration the following reports necessary to compute and establish the state education tax rate and the tax rate for each city, town, unincorporated town, unorganized place, school district, village district, and county. The commissioner shall adopt rules under RSA 541-A establishing the form and content of these reports:

28 New Paragraph; Reports Required. Amend RSA 21-J:34 by inserting after paragraph XIV the following new paragraph:

XV. A report filed by the assessing officials of each city, town, and unincorporated place shall certify sales-assessment information necessary for the department to conduct the annual sales-assessment ratio study required by RSA 21-J:9-a. This report shall be filed within 45 days after receipt from the department.

29 New Paragraph; Setting of Tax Rates by Commissioner. Amend RSA 21-J:35 by inserting after paragraph I the following new paragraph:

I-a. The commissioner shall calculate the biennial state education tax rate as follows:

(a) Multiply the statewide per pupil cost of an adequate education at the elementary school level as determined under RSA 193-E:3, II, by the average daily membership in residence for the state for the most recent school year determined pursuant to RSA 189:28, as adjusted pursuant to RSA 193-E:3, IV;

(b) Divide the total state educational adequacy funding calculated in subparagraph (a) by the total equalized value as determined in RSA 21-J:3, XIII, and reported in the most recent annual report of the department of revenue administration.

30 Department of Education; Findings; Policy Statement. Amend RSA 21-N:1, I to read as follows:

I. The general court finds that the students, parents, general citizenry, local school teachers and administrators, local governments, local school boards, school administrative units, and state government have a [~~joint and~~] shared responsibility for the quality of education delivered through the public education system in the state of New Hampshire.

31 Department of Education; Findings; Policy Statement. Amend RSA 21-N:1, II(c) to read as follows:

(c) The paramount goal of the state shall be to provide [~~quality~~] an adequate education for all school-age children in the state, [to the end that each such child shall be provided the opportunity to reach the child's full educational potential and shall have been exposed to the widest possible variety of educational and cultural experiences] consistent with [~~sound basic education~~] RSA 193-E.

32 Department of Education; Findings; Policy Statement. Amend RSA 21-N:1, II(e) to read as follows:

(e) In accordance with RSA 193-E, the department shall work to establish credible processes for measuring and rating schools[, monitoring continued performance, and approving schools based upon measurable elements known to be related to instructional effectiveness. In the process of monitoring and evaluating schools, department personnel shall strive to operate in a nonintrusive fashion in order to minimize disruption of daily classroom routine].

33 Duties of Commissioner; Department of Education. Amend RSA 21-N:4, VIII to read as follows:

VIII. Administer the provisions of RSA 193-C relative to the statewide educational improvement and assessment program and RSA 193-E, relative to advancing better classrooms.

34 Repeal. RSA 21-N:6, V, relative to standards for approving elementary and secondary schools, is repealed.

35 New Subparagraph; Rulemaking. Amend RSA 21-N:9, II by inserting after subparagraph (y) the following new subparagraph:

(z) The provision of an adequate education as authorized by RSA 193-E:5.

36 Board of Tax and Land Appeals; Authority. Amend RSA 71-B:5, II to read as follows:

II. To hear and determine [~~any~~] appeals by towns relating to the [~~equalization of valuation performed~~] equalized valuation of property determined by the commissioner of revenue administration pursuant to RSA 21-J:3, XIII. Any town aggrieved by [an] its equalized valuation as determined by the commissioner of revenue administration must appeal to the board in writing within 30 days of [~~the town's notification~~] notice of [~~the~~] its final equalized valuation by the commissioner. The board shall hear and make a final ruling on such appeal within 45 days of its receipt by the board. The board's decision on such appeal shall be final and not appealable.

37 New Paragraph; Order for Reassessment. Amend RSA 71-B:16, IV to read as follows:

IV. When a complaint is filed with the board alleging that all of the taxable real estate or taxable property in a taxing district should be reassessed or newly assessed for any reason, provided that such complaint must be signed by at least 50 property taxpayers or 1/3 of the property taxpayers in the taxing district, whichever is less[.]; or

V. When the commissioner of revenue administration files a petition with it pursuant to RSA 21-J:3, XXV.

38 New Section; Inventory of Property Transfers. Amend RSA 74 by inserting after section 17 to following new section:

74:18 Inventory of Property Transfers.

I. In order to properly equalize the value of property under RSA 21-J:3, XIII, an inventory of property transfers shall be filed with the department of revenue administration and with the municipality where the property is located for each transfer of real estate or interest in real estate. Each form may include the following information:

(a) The buyer and seller's names and post transaction addresses and the name and address of a contact person if the buyer or seller is a trust or corporation.

(b) A description of the exact location of the property by town, street, and the assessor's map, lot, and block number.

(d) An accurate description of the property included in the sale, the neighborhood where the property is located, and the type and style of the property sold.

(e) The buyer's ownership interest in the property.

(f) The sale price, date of transfer, and the amount mortgaged.

(g) The description of the type of transfer that has taken place.

(h) The amount of personal property included in the sale price.

(i) Whether the property was previously occupied and whether the property will serve as the buyer's primary residence.

(j) The financing arrangements made to purchase the property to be answered at the option of the buyer.

(k) Whether any concessions were made in the sale.

(l) Whether the property was in current use.

(m) Whether land use taxes were considered in the sale.

(n) The buyer's dated signature certifying that the information indicated on the form is true.

II. The inventory of property transfers required by this section shall be filed with the department of revenue administration and with the municipality where the property is located by the purchaser, grantee, assignee, or transferee, no later than 30 days from the recording of the deed at the register of deeds or transfer of real estate, whichever is later. Persons required to file the inventory of property transfers who willfully fail to file or willfully make false statements on the forms shall be guilty of a violation.

III. No deed, recording a transfer of real estate or any interest in real estate, executed before October 1, 1995, shall be required to comply with this section.

IV. Failure to comply with this section shall not be construed to cloud title.

V. Any information provided to the department pursuant to this section shall be exempt from the right-to-know law, RSA 91-A.

39 Repeal. RSA 78:20, relative to the prohibition on imposing a state tax, is repealed.

40 Repeal. RSA 78-B:10-a, relative to the real estate transfer questionnaire, is repealed.

41 Repeal. RSA 83-D, relative to the tax on nuclear station property, is repealed.

42 Duties of State Board of Education. Amend the introductory paragraph of RSA 186:11 to read as follows:

The state board of education shall, in addition to the duties assigned by [~~RSA 21-N:9~~] RSA 21-N:11:

43 Repeal. RSA 186:11, XI, relative to local funds, is repealed.

44 Appropriations; How Listed. Amend the introductory paragraph of RSA 186:13 to read as follows:

Except for money provided pursuant to RSA 193-E:6-9, all other money appropriated by the legislature for general educational purposes, in addition to the literary fund and all other funds created for the purposes enumerated in this section, shall be used for the following purposes:

45 Educational Improvement. Amend RSA 186:13, III to read as follows:

III. [~~EQUALIZATION AND GENERAL AID. For equalizing educational opportunity and improving the~~] EDUCATIONAL IMPROVEMENT. For educational improvement for public elementary and high schools.

46 Repeal. RSA 186:13, IX, relative to tuition, is repealed.

47 Policy and Purpose. Amend RSA 186-C:1 to read as follows:

186-C:1 Policy and Purpose. It is hereby declared to be the policy of the state that all children in New Hampshire be provided with equal [~~educational opportunities~~] access to an adequate education. It is the purpose of this chapter to insure that the state board of education and the school districts of the state provide a free and appropriate public education for all educationally disabled children.

48 Days of School. Amend RSA 189:1 to read as follows:

189:1 Days of School. The school board of every district shall provide [~~standard~~] approved schools for at least 180 days in each year[~~, at such places in the district as will best serve the interests of education and give to all the pupils within the district as nearly equal advantages as are practicable~~].

49 Duty to Provide Education. Amend RSA 189:1-a to read as follows:

189:1-a Duty to Provide Education. It shall be the duty of the school board to provide[~~, at district expense,~~] an adequate elementary and secondary education [to] for all pupils who reside in the district until such time as the pupil has acquired a high school diploma or has reached age 21, whichever occurs first; provided, that the board may exclude specific pupils for gross misconduct or for neglect or refusal to conform to the reasonable rules of the school; and further provided, that this section shall not apply to pupils who have been exempted from school attendance in accordance with RSA 193:5.

50 Reduction of Time. Amend RSA 189:2 to read as follows:

189:2 Reduction of Time. If the school board of any district shall decide that, by reason of special conditions or circumstances, the maintenance of [~~standard~~] approved schools for 180 days in said district is undesirable, said school board may so represent in writing to the state board. If, upon hearing, the state board, or the commissioner when authorized by the state board, shall be of the opinion that the representation is true, it may reduce the time of maintaining such schools in said district to such limits as it may deem wise. Provided, however, that the state board, or the commissioner if authorized, shall not reduce the days during which schools shall be in session, as provided in RSA 189:1, on account of workshops, conventions or teachers' institutes.

51 Repeal. RSA 189:3, relative to other modifications, is repealed.

52 Repeal. RSA 189:4, relative to decisions of the state board, is repealed.

53 Repeal. RSA 189:12, relative to fuel and repairs, is repealed.

54 Approved School. Amend RSA 189:24 to read as follows:

189:24 [~~Standard~~] Approved School. [~~A standard~~] An approved school, in addition to meeting school approval standards adopted by the board of education pursuant to RSA 541-A, is one maintained for at least 180 days in each year, in a suitable and sanitary building, [~~equipped with approved~~] supplied with furniture, books, [~~maps~~] and other [~~necessary appliances, taught~~] necessary instructional equipment and materials approved by the local school board, staffed by teachers, directed and supervised by principal and superintendent, each of whom shall hold valid educational credentials issued by the state board of education, with suitable provision for the care of the health and physical welfare of all pupils.

55 Repeal. RSA 189:29, relative to the penalty for failing to file statistical reports, is repealed.

56 Duty of Parent; Compulsory Attendance by Pupil; Change in Reference. Amend RSA 193:1, I(c) to read as follows:

(c) The relevant school district superintendent has excused a child from attendance because the child is physically or mentally unable to attend school, or has been temporarily excused upon the request of the parent for purposes agreed upon by the school authorities and the parent. Such excused absences shall not be permitted if they cause a serious adverse effect upon the student's educational progress. Students excused for such temporary absences may be claimed as full-time pupils for purposes of calculating state aid under RSA 186-C:18 and [~~RSA 198:27-37~~] RSA 193-E:6-9.

57 Statement of Purpose. Amend RSA 193-C:1, VI to read as follows:

VI. The purpose of the statewide education improvement and assessment program is not to establish a statewide curriculum. It is, rather, to establish what New Hampshire students should know and be able to do and to develop and implement effective methods for assessing that learning and its application so that local decisions about curriculum development and delivery can be made and assessment data can be used in accordance with RSA 193-E.

58 Program Established; Goals. Amend the introductory paragraph of RSA 193-C:3, IV to read as follows:

IV. The assessment system shall generate data [~~which may~~] to be used:

59 Local Education Improvement and Assessment Plan; Assistance Program. Amend the introductory paragraph of RSA 193-C:9, I to read as follows:

I. Each school district in New Hampshire [~~is encouraged to~~] shall develop a local education improvement and assessment plan which builds upon and complements the goals established for the program, including:

60 New Subparagraph; Local Education Improvement and Assessment; Assistance Program. Amend RSA 193-C:9, I by inserting after subparagraph (d) the following new subparagraph:

(e) The components specified in RSA 193-E:4, I.

61 Local Education Improvement and Assessment Plan; Assistance Program. Amend RSA 193-C:9, II(c) and (d) to read as follows:

(c) A strong emphasis shall be placed on identifying [~~model teachers in the areas included in the statewide education improvement and assessment program~~] distinguished educators and providing them with opportunities to share their expertise and enthusiasm with local educators and community members [~~in developing local education improvement and assessment plans~~].

(d) The department shall work with local districts to improve the capacity of teachers and administrators to design and implement instructional programs to help all students reach high standards. Therefore, funds may also be used to implement statewide professional development initiatives including, but not limited to, mentoring programs for beginning educators and leadership development academies for teachers, administrators, and school board members.

(e) In implementing this program, the department may enter into grants or contracts with school districts, school administrative units, institutions of higher education, regional consortia, and organizations and private businesses. Grant recipients and contractors shall work in coordination with, and under the broad supervision of, the department of education.

62 Repeal. RSA 194:20, relative to establishment of high schools, is repealed.

63 Contracts with Schools. Amend RSA 194:22 to read as follows:

194:22 Contracts With Schools. Any school district may make a contract with an approved public academy[,] or public high school [~~or other literary institution~~] located in this state or, when distance or transportation facilities make it necessary, in another state, and raise and appropriate money to carry the contract into effect. If the contract is approved by the state board, the school with which it is made shall be deemed a high school maintained by the district.

64 Repeal. RSA 194:23-c, relative to standards and uniformity, is repealed.

65 Repeal. RSA 194:23-d, relative to state financial aid, is repealed.

66 Registers; Reports. Amend RSA 194:31 to read as follows:

194:31 Registers; Reports. All academies, private schools and public schools shall be furnished with copies of the school register, and shall make an annual statistical report to the department of education by September 1 as required in RSA 189:28. [The school board of every school district or city, and the board of trustees of approved public academies shall have a 30-day grace period if it fails to file the report due under this section by September 1. At the end of 30 days the commissioner of the department of education shall notify the governing body that all state aid to education for the upcoming fiscal year shall be withheld until the report is filed.]

67 Charter and Open Enrollment Schools; Funding. Amend RSA 194-B:11, VIII to read as follows:

VIII. For the purposes of determining the statewide per-pupil [~~portion of foundation aid~~], cost of an adequate education, the state education tax rate pursuant to RSA 76:3, and the state grants for education under RSA 193-E:6-9, all resident pupils shall be counted, regardless of which public school they may attend.

68 Charter Schools; Operations; Curriculum. Amend RSA 194-B:13, III to read as follows:

III. The board of trustees, in consultation with teachers and the principal, shall develop the charter school's annual budget and shall determine the charter school's curriculum [~~and develop the school's annual budget~~] including the components to be used to provide pupils with the opportunity to acquire an education consistent with RSA 193-E:2.

69 Superintendent Services. Amend 194-C:4, II(d) to read as follows:

(d) Compliance with laws, regulations, and rules regarding special education, Title IX, the Americans with Disabilities Act, delivery of an adequate education, home education, minimum standards, student records, sexual harassment, and other matters as may from time to time occur.

70 Annual School Meetings. Amend RSA 197:1 to read as follows:

197:1 Annual. A meeting of every school district shall be held annually between March 1 and March 25, inclusive, or in accordance with RSA 40:13 if that provision is adopted in the district, for raising and appropriating money, in accordance with RSA 193-E:9, for the support of schools for the fiscal year beginning the next July 1, for the transaction of other district business and, in those districts not electing their district officers at town meeting, for the choice of district officers.

71 Repeal. RSA 198:1, relative to an annual tax, is repealed.

72 Repeal. RSA 198:2, relative to expenditures, is repealed.

73 Repeal. RSA 198:3, relative to a penalty, is repealed.

74 Repeal. RSA 198:4, relative to estimates, is repealed.

75 Repeal. RSA 198:4-f, relative to a penalty for failing to file report, is repealed.

76 Assessment. Amend 198:5 to read as follows:

198:5 Assessment. The selectmen of the town, in their next annual assessment, shall assess upon the taxable property of the district a sum sufficient to meet the obligations above enumerated, [~~with such alterations thereof~~] appropriated pursuant to RSA 193-E:9 and such other sums as may be voted by the district, and shall pay the same over to the district treasurer as the school board shall require for the maintenance of schools.

77 Payment in Lieu of Taxes. Amend RSA 227-H:17 to read as follows:

227-H:17 Payment in Lieu of Taxes. The commissioner of revenue administration shall adopt rules, pursuant to RSA 541-A, relative to forms for application to the commissioner of revenue administration for payment for lost taxes. [~~In any year in which no state tax is levied,~~] Any town in which national forestlands and land held by the state for operation and development as state forestlands, as defined by the department for the purposes of this section, are situated, whether acquired by gift, devise, purchase, or in any other manner, may apply, by its selectmen, to the commissioner of revenue administration on forms provided by the commissioner, annually before September 1, for the payment of an amount not exceeding the taxes for all purposes which such town might have received from taxes on such lands in such year had such lands been taxable. In the event that the amount appropriated in any biennium shall be insufficient for the purposes under this section, then the towns entitled to benefits under this section shall be reimbursed proportionately, unless otherwise subsequently ordered by the legislature.

78 Special Fund for Moneys Received from Sweepstakes Commission. RSA 284:21-j is repealed and reenacted to read as follows:

284:21-j Special Fund for Moneys Received from Sweepstakes Commission. The state treasurer shall credit all moneys received from the sweepstakes commission, and interest received on such moneys, to a special fund from which the state treasurer shall pay all expenses of the commission incident to the administration of this subdivision and RSA 287-E. Any balance left in said special fund after such expenses are paid shall be continually appropriated to the department of education for the sole purpose of funding state aid to education under RSA 193-E:7.

79 Positions Established; Appropriations.

I. To carry out the financial and educational reporting requirements of this act, there are hereby established within the department of education the following permanent, full-time classified positions:

(a) Technical support specialist III; and

(b) Technical support specialist V.

II. The sum of $115,000 for the biennium ending June 30, 1999, is hereby appropriated to the department of education to fund the establishment of the 2 positions created in paragraph I. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

III. The sum of $240,000 for the biennium ending June 30, 1999, is appropriated to the department of revenue administration to fund the costs necessary to implement this act. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

80 Footnote Removed. Amend the totals of 1997, 350:1, 01, 07, 01, 03 to read as follows:

FY 1998 FY 1999

TOTAL 1,458,027 1,500,790

ESTIMATED SOURCE OF FUNDS FOR

PROPERTY APPRAISAL

07 AGENCY INCOME [*] 770,000 770,000

08 AGENCY INCOME ** 48,858 47,358

[*

IN THE EVENT THAT REVENUE, AND COSTS ASSOCIATED WITH STATE APPRAISALS, LEASE NEGOTIATIONS, AND LEASED FACILITY BUILD-OUT COMPLIANCE MONITORING, IS LESS THAN BUDGETED, THE TOTAL APPROPRIATION SHALL BE REDUCED BY THE AMOUNT OF THE SHORTFALL IN EITHER ACTUAL OR PROJECTED BUDGET REVENUE. THE AGENCY HEAD SHALL NOTIFY THE BUREAU OF ACCOUNTS FORTHWITH, IN WRITING, AS TO PRECISELY WHICH LINE ITEM APPROPRIATION AND IN WHAT SPECIFIC AMOUNTS REDUCTIONS ARE TO BE MADE IN ORDER TO FULLY COMPENSATE FOR THE TOTAL REVENUE DEFICIT.]

**

REVENUE IN EXCESS OF THE ESTIMATE MAY BE EXPENDED WITH PRIOR APPROVAL OF THE FISCAL COMMITTEE AND THE APPROVAL OF THE GOVERNOR AND COUNCIL. THESE FUNDS SHALL NOT LAPSE UNTIL THE DEBT ON THE C.A.M.A. PROJECT HAS BEEN PAID IN FULL.

TOTAL 1,458,027 1,500,790

81 Authority. The attorney general has authority to enforce any and all provisions of this act, in accordance with New Hampshire law, through appropriate civil and equitable proceedings, including but not limited to injunctive relief.

82 Severability. If any provision of this act or the application thereof to any person or circumstance is deemed invalid, the invalidity does not affect the other provisions or applications of the act which can be given effect without the invalid provisions or applications and to this end the provisions of this act are severable; provided, however, that if section 15 is deemed invalid, all other section of this act shall be invalid except sections 3, 4, and 6.

83 Removing Reference to the Tax on Nuclear Station Property. Amend RSA 77-A:5-a to read as follows:

77-A:5-a Tax Expenditure Report. On or before February 1 of every calendar year the commissioner shall certify to the general court and the governor an analysis of each of the past year's credits allowed under RSA 77-A, RSA 77-E, RSA 83-C, [~~RSA 83-D,~~] and RSA 400-A against the business profits tax imposed by this chapter and the apportionment factors under RSA 77-A:3, II(a).

84 Removing Reference to Foundation Aid. Amend RSA 198:21, V to read as follows:

V. No pupil counted by any school district for the purpose of calculating the amount of a grant to be paid pursuant to this section shall for the same school year by the same district be [~~included in average daily membership for the purposes of foundation aid or~~] counted for the purposes of grants pursuant to RSA 198:22.

85 Removing Reference to Foundation Aid. Amend RSA 198:22, V to read as follows:

V. No pupil counted by any school for the purpose of calculating the amount of a grant to be paid pursuant to this section shall for the same school year by the same district be [~~included in average daily membership for the purposes of foundation aid or~~] counted for the purpose of grants pursuant to RSA 198:21.

86 District Foundation Aid. Amend RSA 198:36, IV to read as follows:

IV. The foundation amount shall be [~~$4,000~~] $5,250 per weighted pupil.

87 Contingency Fund. Amend RSA 198:4-b to read as follows:

198:4-b Contingency Fund. Every school district usually by an article in the warrant, and the governing body of a city upon recommendation of the school board, when the operation of the schools is by a department of the city, may establish a contingency fund to meet the cost of unanticipated expenses that may arise during the year. [~~Such fund shall not exceed one percent of the amount appropriated for school purposes, exclusive of capital expenditures and amortization of debt, during the preceding year.~~] A detailed report of all expenditures from the contingency fund shall be made annually by the school board and published with their report.

88 Repeal. The following are repealed:

I. RSA 21-J:3, XXIII, relative to the commissioner of revenue administration's duty to determine local per capita income for purposes of foundation aid.

II. RSA 21-J:13, XI, relative to the form and content of the real estate transfer questionnaire.

89 Effective Date.

I. Section 80 of this act shall take effect on June 30, 1998.

II. Sections 41 and 83 of this act shall take effect March 31, 1999.

III. Sections 8, 67, 78, and 84-85 of this act shall take effect July 1, 2000.

IV. Section 86 of this act shall take effect July 1, 1999.

V. The remainder of this act shall take effect upon its passage.

LBAO

98-2589

Amended 7/15/98

HB 1280 FISCAL NOTE

AN ACT implementing the Advancing Better Classrooms program to provide a constitutionally adequate public education to all the children of New Hampshire.

FISCAL IMPACT:

The Department of Revenue Administration indicates this bill, as amended by the Senate, will decrease state general fund unrestricted revenue by $7.5 million and state restricted revenue by $600,000 in FY 1999 and each year thereafter. State general fund expenditures will increase by $240,000 in FY 1999 and by $95 million in FY 2000 and FY 2001. Local revenue will increase by $95 million in FY 2000 and by $123 million in FY 2001.

The Department of Education indicates this bill will increase state general fund expenditures by $170,000 in FY 1999, by $187,875 in FY 2000, by $120,822 in FY 2001, and by $123,842 in FY 2002.

There will be no fiscal impact on county revenue or county and local expenditures.

This bill appropriates $240,000 and $115,000 for the biennium ending June 30, 1999 in general funds to the Departments of Revenue Administration and Education respectively, for the purposes of this act. In addition, this bill appropriates $55,000 in general funds for the purpose of this act.

METHODOLOGY:

The Department of Revenue Administration (DRA) indicates with repeal of the Nuclear Station Property Tax in FY 1999, the state will no longer collect $7.5 million in general fund revenue from those taxes in FY 1999 and each year thereafter. In addition, the Department expects state restricted revenue to decrease due to the anticipated reduction in property appraisal revenue in the amount of $600,000 starting in FY 1999 and each year thereafter.

DRA states the education grants to municipalities, along with amounts necessary for the hold harmless provision of the bill will total $161 million in FY 2000 and $189 million in FY 2001. Those amounts will be reduced to $95 million and $123 million when netted against the FY 1999 amount of foundation aid, $66 million. The Department could not estimate the amount of education grants beyond FY 2001.

DRA indicates that general fund expenditures will increase in FY 1999 to fund administrative duties required by this bill in an amount equal to the $240,000 appropriated.

The Department of Education states this bill will increase state general fund expenditures to fund two new positions in the Department, a technical support specialist III and a technical support specialist V. The salary, benefits and current expenses necessary to support these two positions will amount to $115,000 in FY 1999, $117,875 in FY 2000, $120,822 in FY 2001 and $123,842 in FY 2002. In addition, the Department expects the commissions established in this bill to spend $55,000 in FY 1999 and $70,000 in FY 2000.

In addition to the fiscal impact above, there may be increases in state general fund expenditures to provide administrative functions in the Department of Education. Costs to fund the special projects and district improvement fund and costs for technical advisors, reports, and monitoring cannot be estimated by the Department at this time.

Also, there may be some additional administrative costs to municipalities for the cost of additional audit requirements and new tax bills. These costs cannot be estimated by the Department of Revenue Administration.