To amend section 3314.06 and to enact sections 3314.0110, 3314.0111, and 3314.0112 of the Revised Code and to amend Section 263.325 of Am. Sub. H.B. 59 of the 130th General Assembly to authorize the establishment of enterprise academy community schools that operate on an extended-day, year-round schedule, use competency-based mastery curriculum model, use blended learning for core subjects, and offer alternative college- and career-ready pathways and to give such schools priority for grants awarded under the Straight A Program.

Section 1.  That section 3314.06 be amended and sections 3314.0110, 3314.0111, and 3314.0112 of the Revised Code be enacted to read as follows:

Sec. 3314.0110.  (A)(1) Notwithstanding anything in the Revised Code to the contrary, a community school may be established under this chapter as an enterprise academy, which shall operate in accordance with this section. An enterprise academy community school may be established in any school district or, by a consortium of adjacent school districts, with a population of not less than fifteen thousand persons entitled to attend school under section 3314.64 or 3314.65 of the Revised Code. Unless otherwise specified in this section, each enterprise academy community school shall comply with all provisions of this chapter.

(2) Each enterprise academy community school shall be administered by a governing authority as described in division (E) of section 3314.02 of the Revised Code, which shall be selected by the board of education of the school district, or by the boards of the districts of the consortium, for which the school is established. Each academy shall have a sponsor, which shall be one of the entities described in division (C)(1) of section 3314.02 of the Revised Code. The governing authority and the sponsor shall enter into a contract, as prescribed by section 3314.03 of the Revised Code, which shall describe the differentiated nature of the school's instructional program and prescribe an academic accountability plan.

(3) For each enterprise academy, the board of education of the school district, or the boards of the districts of the consortium, for which the school is established shall complete a site selection process in order to determine the location for the school. In making this determination, the board or boards shall ensure that the location for the school and the neighborhood surrounding the school is generally considered safe for students.

(B) Each enterprise academy community school shall operate on a year-round schedule under which the school shall be open for instruction with students in attendance in each month of the school year for two hundred and twenty days. Each school day shall consist of not less than nine clock hours with students in attendance, except in such emergency situations as are approved by the state board of education.

Each enterprise academy community school shall provide instruction for students of school age, as prescribed by division (B) of section 3313.64 of the Revised Code, and to preschool age children, as provided in division (C)(3) of this section.

Transportation to and from the school for school age children shall be provided in accordance with section 3314.09 or 3314.091 of the Revised Code. Transportation for preschool age children may be provided by the school in accordance with a plan adopted by the school's governing authority.

(C)(1) Each enterprise academy community school is exempted from the Ohio core curriculum prescribed by division (C) of section 3313.603 of the Revised Code. The curriculum of the school shall be developed by the governing authority. The pace of completion of the curriculum shall be individualized for each student. Each enterprise academy community school shall provide competency, mastery-based, and blended learning opportunities so that completing the high school curriculum and transitioning to earning an associate degree is as seamless as possible. As used in this section, "blended learning" has the same meaning as in section 3301.079 of the Revised Code.

At a minimum, the curriculum shall include all of the following:

(a) "Core requirement" courses, which shall provide students with the ability to score at or above the proficient level, as determined by the state board pursuant to division (A)(2)(b) of section 3301.0710 of the Revised Code, on the state achievement assessments prescribed by section 3301.0710 of the Revised Code;

(b) Courses on citizenship, entrepreneurship, and financial literacy. Each governing authority may use either the academic content standards developed by the state board of education under section 3301.079 of the Revised Code or may develop its own standards for these courses.

(c) Supervised vigorous physical activity, to be provided in a manner prescribed by the governing authority. Participation in varsity athletics shall be considered as satisfying this requirement.

(d) Study hall and mentorship, which shall account for not less than one clock hour per school day. Each study hall shall be staffed by a qualified teacher and may include mentorship activities such as career counseling. Mentorship may be provided by private organizations, including, but not limited to, big brothers big sisters or similar organizations.

(e) Courses beyond the core requirement courses, depending upon the progress of each individual student. The course content and the manner in which these courses are offered shall be left to the discretion of the governing authority.

(f) Participation in a dual enrollment program, as defined by section 3301.6013 of the Revised Code. Participation shall be in one of the following programs:

(i) The post-secondary enrollment options program established under Chapter 3365. of the Revised Code. Students may enroll only in courses that will further college or career readiness as determined by the chancellor of the Ohio board of regents and the superintendent of public instruction.

(ii) Another dual enrollment program in an agricultural, industrial, vocational, or trade school or obtainment of an industry certification or apprenticeship in any field.

To the extent possible, instruction in dual enrollment programs under division (C)(1)(f) of this section shall be provided on-site at the enterprise academy community school.

The chancellor and the superintendent of public instruction jointly shall adopt rules prescribing standards for and administration of these programs. The rules shall require all state institutions of higher education, as defined in section 3345.011 of the Revised Code, to accept and award credit for any course offered at the enterprise academy community school under the post-secondary enrollment options program.

Each enterprise academy may enter into partnerships with applicable institutions and groups, including, but not limited to, institutions of higher education and agricultural, industrial, vocational, and trade schools. These programs shall be funded by the chancellor with funds as appropriated by the general assembly.

(2) A combination of technology-based instruction, including internet- or computer-based instruction, and classroom-based instruction shall be provided to each student. Students shall be grouped according to age, but shall not be assigned traditional grade levels. Teachers shall permit each student to advance through the curriculum at the student's own pace.

(3) All-day kindergarten, as defined in section 3321.05 of the Revised Code, and early childhood education for children who are toilet-trained and at least two and one-half years old shall be provided at each enterprise academy community school. Early childhood education shall be funded, to the extent possible, by federal funding allocated for daycare and early childhood education initiatives and by such other programs authorized by state law. For purposes of this section, a "toilet-trained" child is one who no longer requires the use of diapers, training pants, or disposable pull-up underwear.

(4) Students with disabilities shall be provided with special education and related services in accordance with Chapter 3323. of the Revised Code.

(5) Notwithstanding anything to the contrary in the Revised Code, an enterprise academy community school shall grant course credit to any student who does not complete a course of instruction but who demonstrates competency in that course's subject matter by way of attaining a score, as determined by the department of education, in any of the assessments required under division (A) or (B)(1) of section 3301.0710 or division (B)(2) of section 3301.0712 of the Revised Code. For purposes of division (C)(5) of this section, if an assessment is not administered under those sections for a core requirement course subject or for a specific grade level, or both, the department of education shall develop or select an assessment, and score range, by which a student may demonstrate competency in that subject at that grade level for course credit.

(D) Notwithstanding anything in the Revised Code to the contrary, each full-time teacher employed by an enterprise academy community school shall be paid not less than eighty-five thousand dollars per school year.

(E) Annually, on the same dates designated by the superintendent of public instruction under division (C) of section 3301.0710 of the Revised Code for the spring administration of the state achievement assessments, each enterprise academy community school shall report the percentage of students who have earned course credit under division (C)(5) of this section by age and highest grade level of competency.

(F) Notwithstanding anything to the contrary in section 3314.05 of the Revised Code, an enterprise academy community school may offer classes and operate in separate buildings under the same contract.

Sec. 3314.0111.  (A) Annually the department of education shall report for each enterprise academy community school established under section 3314.0110 of the Revised Code both of the following components:

(1) For the college-ready component, the percentage of students who attend a college or university within one year after graduation and who complete a bachelor's degree within three years of graduation from the academy;

(2) For the career-ready component, the percentage of students who earn not less than two hundred per cent of the minimum wage, as defined in Chapter 4111. of the Revised Code, within one year after graduation from the academy and the percentage of students who earn not less than two hundred fifty per cent of the minimum wage within three years after graduation from the academy.

(B) The department of education shall annually report a letter grade for both the college- and the career-ready component defined in division (A) of this section for each enterprise academy. The state board of education shall prescribe benchmarks based upon the criteria in division (A) of this section for the assignment of these letter grades.

(C) No enterprise academy community school shall receive a building or district grade as prescribed by sections 3302.03 and 3314.012 or section 3314.017 of the Revised Code.

Sec. 3314.0112.  The state board of education, through the department of education, shall appoint the director of enterprise academy community schools, who shall serve at the pleasure of the state board and shall oversee the operations of enterprise academies established under section 3314.0110 of the Revised Code.

Sec. 3314.06.  The governing authority of each community school established under this chapter shall adopt admission procedures that specify the following:

(A) That, except as otherwise provided in this section, admission to the school shall be open to any individual age five to twenty-two entitled to attend school pursuant to section 3313.64 or 3313.65 of the Revised Code in a school district in the state.

Additionally, except as otherwise provided in this section, admission to the school may be open on a tuition basis to any individual age five to twenty-two who is not a resident of this state. The school shall not receive state funds under section 3314.08 of the Revised Code for any student who is not a resident of this state.

An individual younger than five years of age may be admitted to the school in accordance with division (A)(2) of section 3321.01 of the Revised Code. The school shall receive funds for an individual admitted under that division in the manner provided under section 3314.08 of the Revised Code.

An individual younger than five years of age, but at least two and one-half years of age, may be admitted to an enterprise academy community school established under section 3314.0110 of the Revised Code, in accordance with division (C)(3) of that section.

(B)(1) That admission to the school may be limited to students who have attained a specific grade level or are within a specific age group; to students that meet a definition of "at-risk," as defined in the contract; to residents of a specific geographic area within the district, as defined in the contract; or to separate groups of autistic students and nondisabled students, as authorized in section 3314.061 of the Revised Code and as defined in the contract.

(2) For purposes of division (B)(1) of this section, "at-risk" students may include those students identified as gifted students under section 3324.03 of the Revised Code.

(C) Whether enrollment is limited to students who reside in the district in which the school is located or is open to residents of other districts, as provided in the policy adopted pursuant to the contract.

(D)(1) That there will be no discrimination in the admission of students to the school on the basis of race, creed, color, disability, or sex except that:

(a) The governing authority may do either of the following for the purpose described in division (G) of this section:

(i) Establish a single-gender school for either sex;

(ii) Establish single-gender schools for each sex under the same contract, provided substantially equal facilities and learning opportunities are offered for both boys and girls. Such facilities and opportunities may be offered for each sex at separate locations.

(b) The governing authority may establish a school that simultaneously serves a group of students identified as autistic and a group of students who are not disabled, as authorized in section 3314.061 of the Revised Code. However, unless the total capacity established for the school has been filled, no student with any disability shall be denied admission on the basis of that disability.

(2) That upon admission of any student with a disability, the community school will comply with all federal and state laws regarding the education of students with disabilities.

(E) That the school may not limit admission to students on the basis of intellectual ability, measures of achievement or aptitude, or athletic ability, except that a school may limit its enrollment to students as described in division (B) of this section.

(F) That the community school will admit the number of students that does not exceed the capacity of the school's programs, classes, grade levels, or facilities.

(G) That the purpose of single-gender schools that are established shall be to take advantage of the academic benefits some students realize from single-gender instruction and facilities and to offer students and parents residing in the district the option of a single-gender education.

(H) That, except as otherwise provided under division (B) of this section or section 3314.061 of the Revised Code, if the number of applicants exceeds the capacity restrictions of division (F) of this section, students shall be admitted by lot from all those submitting applications, except preference shall be given to students attending the school the previous year and to students who reside in the district in which the school is located. Preference may be given to siblings of students attending the school the previous year.

Notwithstanding divisions (A) to (H) of this section, in the event the racial composition of the enrollment of the community school is violative of a federal desegregation order, the community school shall take any and all corrective measures to comply with the desegregation order.

Section 2. That existing section 3314.06 of the Revised Code is hereby repealed.

Section 3. That Section 263.325 of Am. Sub. H.B. 59 of the 130th General Assembly be amended to read as follows:

Sec. 263.325. (A) The Straight A Program is hereby created for fiscal years 2014 and 2015 to provide grants to city, local, exempted village, and joint vocational school districts, educational service centers, community schools established under Chapter 3314., STEM schools established under Chapter 3326., college-preparatory boarding schools established under Chapter 3328. of the Revised Code, individual school buildings, education consortia (which may represent a partnership among school districts, school buildings, community schools, or STEM schools), institutions of higher education, and private entities partnering with one or more of the educational entities identified in this division for projects that aim to achieve significant advancement in one or more of the following goals:

(1) Student achievement;

(2) Spending reduction in the five-year fiscal forecast required under section 5705.391 of the Revised Code;

(3) Utilization of a greater share of resources in the classroom.

(B)(1) Grants shall be awarded by a nine-member governing board consisting of the Superintendent of Public Instruction, or the Superintendent's designee, four members appointed by the Governor, two members appointed by the Speaker of the House of Representatives, and two members appointed by the President of the Senate. The Department of Education shall provide administrative support to the board. No member shall be compensated for the member's service on the board.

(2) The board shall select grant advisors with fiscal expertise and education expertise. These advisors shall evaluate proposals from grant applicants and advise the staff administering the program. No advisor shall be compensated for this service.

(3) The board shall issue an annual report to the Governor, the Speaker of the House of Representatives, the President of the Senate, and the chairpersons of the House and Senate committees that primarily deal with education regarding the types of grants awarded, the grant recipients, and the effectiveness of the grant program.

(4) The board shall create a grant application and publish on the Department's web site the application and timeline for the submission, review, notification, and awarding of grant proposals.

(5) With the approval of the board, the Department shall establish a system for evaluating and scoring the grant applications received under this section.

(C) Each grant applicant shall submit a proposal that includes all of the following:

(1) A description of the project for which the applicant is seeking a grant, including a description of how the project will have substantial value and lasting impact;

(2) An explanation of how the project will be self-sustaining. If the project will result in increased ongoing spending, the applicant shall show how the spending will be offset by verifiable, credible, permanent spending reductions.

(3) A description of quantifiable results of the project that can be benchmarked.

If an education consortia described in division (A) of this section applies for a grant, the lead applicant shall be the school district, school building, community school, or STEM school that is a member of the consortia and shall so indicate on the grant application.

(D)(1) Within seventy-five days after receiving a grant application, the board shall issue a decision on the application of "yes," "no," "hold," or "edit." In making its decision, the board shall consider whether the project has the capability of being replicated in other school districts and schools or creates something that can be used in other districts and schools. A grant awarded under this section to a school district, educational service center, community school, STEM school, college-preparatory boarding school, individual school building, institution of higher education, or private entity partnering with one or more of the educational entities identified in division (A) of this section shall not exceed $5,000,000 in each fiscal year. A grant awarded to an education consortia shall not exceed $15,000,000 in each fiscal year. The Superintendent of Public Instruction may make recommendations to the Controlling Board that these maximum amounts be exceeded. Upon Controlling Board approval, grants may be awarded in excess of these amounts.

(2) If the board issues a "hold" or "edit" decision for an application, it shall, upon returning the application to the applicant, specify the process for reconsideration of the application. An applicant may work with the grant advisors and staff to modify or improve a grant application.

(E) Upon deciding to award a grant to an applicant, the board shall enter into a grant agreement with the applicant that includes all of the following:

(1) The content of the applicant's proposal as outlined under division (C) of this section;

(2) The project's deliverables and a timetable for their completion;

(3) Conditions for receiving grant funding;

(4) Conditions for receiving funding in future years if the contract is a multi-year contract;

(5) A provision specifying that funding will be returned to the board if the applicant fails to implement the agreement, as determined by the Auditor of State.

(6) A provision specifying that the agreement may be amended by mutual agreement between the board and the applicant.

(F) An advisory committee for the Straight A Program is hereby established. The committee shall consist of not more than eleven members appointed by the Governor that represent all areas of the state and different interests. The committee shall annually review the Straight A Program and provide strategic advice to the governing board and the Director of the Governor's Office of 21st Century Education.

(G) Each grant awarded under this section shall be subject to approval by the Controlling Board prior to execution of the grant agreement.

(H) Notwithstanding anything to the contrary, a grant application submitted under this section within the applicable timeline by an enterprise academy community school, established under section 3314.0110 of the Revised Code, shall be considered by the board to automatically meet the goals of the program described in division (A) of this section. In reviewing the grant applications, the board shall first consider all grants submitted by enterprise academy community schools and shall issue a decision for each application pursuant to division (D)(1) of this section. Notwithstanding division (D)(1) of this section, grants awarded to enterprise academy community schools shall not exceed $3,000,000.

Section 4. That existing Section 263.325 of Am. Sub. H.B. 59 of the 130th General Assembly is hereby repealed.

Section 5. In order to achieve the primary goals of the State of Ohio's education system, enterprise academy community schools shall be established to ensure that students are provided with an alternative pathway to be adequately prepared for success in college or in the career of their choice. In order to obtain this success, the purpose of such schools is to do all of the following:

(A) Produce the best informed, strongest citizens in Ohio and in the nation;

(B) Generate the most competitive graduates in the nation and attract businesses to locate their operations in Ohio;

(C) Help students graduate with both a high school diploma and an associate's degree at the time of graduation from the enterprise academy in order to minimize debt incurred for higher education;

(D) Ensure that all graduates find well-paying and stable jobs that are capable of supporting a family.

Section 6. If a new start-up community school is established as an enterprise academy, in accordance with section 3314.0110 of the Revised Code, and initially opens for operation in the 2014-2015 school year, the school's governing authority and the governing board of the school's sponsor shall not be subject to the deadlines prescribed by division (D) of section 3314.02 of the Revised Code for adoption and signing of the contract entered into under section 3314.03 of the Revised Code, but those parties shall adopt and sign the contract, and file a copy of it with the Superintendent of Public Instruction, prior to the school's opening.