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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
883
BY
EDUCATION
COMMITTEE
AN
ACT
1
RELATING
TO
EDUCATION;
AMENDING
CHAPTER
10,
TITLE
33,
IDAHO
CODE,
BY
THE
AD
-
2
DITION
OF
A
NEW
SECTION
33
-
1035,
IDAHO
CODE,
TO
ESTABLISH
PROVISIONS
RE
-
3
GARDING
SCHOOL
DISTRICT
EARNED
AUTONOMY;
AMENDING
CHAPTER
52,
TITLE
33,
4
IDAHO
CODE,
BY
THE
ADDITION
OF
A
NEW
SECTION
33
-
5207A,
IDAHO
CODE,
TO
5
ESTABLISH
PROVISIONS
REGARDING
PUBLIC
CHARTER
SCHOOL
EARNED
AUTONOMY;
6
AND
DECLARING
AN
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
7
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
8
SECTION
1.
That
Chapter
10,
Title
33,
Idaho
Code,
be,
and
the
same
is
9
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
10
ignated
as
Section
33
-
1035,
Idaho
Code,
and
to
read
as
follows:
1
1
33
-
1035.
SCHOOL
DISTRICT
EARNED
AUTONOMY.
(1)
Notwithstanding
any
12
provision
of
law
to
the
contrary,
a
school
district
that
satisfies
the
re
-
13
quirements
set
forth
in
this
section
may
spend
its
allocated
state
funding,
14
including
but
not
limited
to
discretionary
funds,
categorical
funds,
and
15
salary
apportionment,
in
the
manner
it
deems
best
serves
its
students
and
16
schools.
17
(2)
A
school
district
shall
have
the
option
to
participate
in
the
flexi
-
18
bility
provided
in
this
section
if
it:
19
(a)
Meets
the
following
academic
benchmarks:
20
(i)
The
school
district's
composite
proficiency
rate
on
the
Idaho
21
standards
achievement
test
is
in
the
top
twenty
percent
(20%)
of
22
school
districts
statewide
or
the
school
district
exceeds
the
23
state
proficiency
average
by
at
least
fifteen
(15)
percentage
24
points
in
both
English
language
arts
and
math;
25
(ii)
Seventy
-
five
percent
(75%)
or
more
of
the
school
district's
26
K
-
3
students
score
proficient
on
the
spring
administration
of
the
27
Idaho
reading
indicator
or
the
school
district
demonstrates
a
fif
-
28
teen
percent
(15%)
reduction
in
students
scoring
below
basic
annu
-
29
ally;
and
30
(iii)
The
school
district
maintains
an
adjusted
cohort
graduation
31
rate
that
is
three
(3)
percentage
points
higher
than
the
state
av
-
32
erage
or
the
percentage
of
graduates
who
earn
a
college
and
career
33
readiness
indicator
that
includes
career
technical
education
com
-
34
pletion,
an
associate's
degree,
qualifying
advance
placement,
an
35
international
baccalaureate,
or
a
dual
credit
course
is
five
(5)
36
percentage
points
higher
than
the
state
average;
37
(b)
Provides
the
following
evidence
demonstrating
financial
stability
38
for
each
of
the
previous
three
(3)
fiscal
years:
39
(i)
An
unqualified
audit
opinion
or
a
qualified
opinion
qualified
40
solely
on
the
basis
of
not
reporting
the
actuarial
value
of
the
41
public
employee
retirement
system
of
Idaho
sick
leave
plan
pur
-
42
2
suant
to
statement
no.
45
of
the
governmental
accounting
stan
-
1
dards
board;
2
(ii)
An
audit
devoid
of
significant
findings
and
conditions,
ma
-
3
terial
weaknesses,
or
significant
internal
control
deficiencies;
4
and
5
(iii)
An
audit
that
does
not
include
a
going
concern
disclosure
in
6
the
notes
or
an
explanatory
paragraph
within
the
audit
report.
7
(3)
Participating
school
districts
shall
be
exempt
from
the
reporting
8
requirements,
including
those
established
through
rulemaking
authority,
9
of
sections
33
-
119,
33
-
135,
33
-
1002B,
33
-
1004E,
33
-
1028(1)(f)
and
(2),
10
33
-
1405,
33
-
1632,
33
-
1805,
33
-
1811,
33
-
2004,
and
33
-
4805,
Idaho
Code,
with
-
1
1
out
incurring
a
penalty
or
a
reduction
in
funding.
12
(4)
Participating
school
districts
shall
automatically
maintain
13
spending
flexibility
from
year
to
year,
except
that
the
state
department
of
14
education
may
revoke
eligibility
if:
15
(a)
The
school
district
fails
to
receive
an
annual
unmodified
audit
16
opinion
or
if
the
auditor's
report
on
internal
controls
reports
one
(1)
17
or
more
material
weaknesses
or
significant
deficiencies;
or
18
(b)
The
school
district
fails
to
satisfy
the
academic
requirements
set
19
forth
in
subsection
(2)
of
this
section
for
two
(2)
or
more
years.
20
(5)
In
2029,
the
state
board
of
education
shall
report
to
the
legisla
-
21
ture
the
number
of
participating
school
districts
and
changes,
if
any,
in
22
student
growth
or
proficiency
on
the
Idaho
standards
achievement
test.
Ad
-
23
ditionally,
the
report
shall
include
information
regarding
whether
any
par
-
24
ticipating
school
districts
collected
a
levy,
and
any
disclosures
required
25
pursuant
to
section
33
-
802B,
Idaho
Code,
shall
be
appended
to
the
report.
26
SECTION
2.
That
Chapter
52,
Title
33,
Idaho
Code,
be,
and
the
same
is
27
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
28
ignated
as
Section
33
-
5207A,
Idaho
Code,
and
to
read
as
follows:
29
33
-
5207A.
PUBLIC
CHARTER
SCHOOL
EARNED
AUTONOMY.
(1)
Notwithstanding
30
any
provision
of
law
to
the
contrary,
a
public
charter
school
that
is
not
a
31
virtual
school,
as
defined
in
section
33
-
5202A,
Idaho
Code,
and
that
sat
-
32
isfies
the
requirements
set
forth
in
section
33
-
5218(2)(b),
(e),
and
(g),
33
Idaho
Code,
may
spend
its
allocated
state
funding,
including
but
not
limited
34
to
discretionary
funds,
categorical
funds,
and
salary
apportionment,
in
the
35
manner
it
deems
best
serves
students
and
the
public
charter
school.
Partici
-
36
pation
shall
not
require
a
revision
to
the
public
charter
school's
charter
or
37
performance
certificate.
38
(2)
Participating
public
charter
schools
shall
be
exempt
from
report
-
39
ing
requirements
established
in
statute
or
through
rulemaking
authority
40
that
are
not
federally
mandated
or
required
for
public
school
finance
41
purposes.
This
exemption
includes
but
is
not
limited
to
reporting
require
-
42
ments
established
pursuant
to
sections
33
-
119,
33
-
135,
33
-
1002B,
33
-
1004E,
43
33
-
1028(1)(f)
and
(2),
33
-
1405,
33
-
1632,
33
-
1805,
33
-
1811,
33
-
2004,
and
44
33
-
4805,
Idaho
Code,
without
incurring
a
penalty
or
a
reduction
in
funding.
45
(3)
Participating
public
charter
schools
shall
automatically
maintain
46
spending
flexibility
from
year
to
year,
except
that
the
state
department
of
47
education
may
revoke
eligibility
if:
48
3
(a)
The
school
fails
to
receive
an
annual
unmodified
audit
opinion
or
if
1
the
auditor's
report
on
internal
controls
reports
one
(1)
or
more
mate
-
2
rial
weaknesses
or
significant
deficiencies;
3
(b)
The
school
fails
to
satisfy
the
academic
requirements
set
forth
in
4
section
33
-
5218(2)(g),
Idaho
Code,
for
two
(2)
or
more
years;
or
5
(c)
The
school's
charter
is
subsequently
revoked,
not
renewed,
or
re
-
6
newed
with
conditions.
7
(4)
In
2029,
the
state
board
of
education
shall
report
to
the
legisla
-
8
ture
the
number
of
participating
public
charter
schools
and
changes,
if
any,
9
in
student
growth
or
proficiency
on
the
Idaho
standards
achievement
test.
10
SECTION
3.
An
emergency
existing
therefor,
which
emergency
is
hereby
1
1
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
12
July
1,
2026.
13