Gov. Jeanne Shaheen's ABC Bill AN ACT implementing the Advancing Better Classrooms program to provide a constitutionally adequate public education to all the children of New Hampshire.

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

Matter removed from current law appears [in brackets and struck through].

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

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 and fund 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 education from kindergarten through twelfth grade 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 civic realities of society, 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, curriculum, and student proficiency standards, 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 Adequate Education.

An adequate education shall provide all students with the opportunity to acquire:

(a) skill in reading, writing, and speaking English to enable them to communicate effectively;

(b) knowledge of mathematics, science, and technology to enable them to function in a complex and rapidly changing society;

(c) 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;

(d) grounding in the arts and literature to enable them to appreciate the cultural heritage of our state, nation, and world;

(e) understanding of sound wellness practices to enable them to make decisions that enhance their own health and safety as well as the well-being of others and the community at large;

(f) problem-solving, reasoning, and critical thinking skills to enable them to address issues that affect them personally or affect the community, state, nation, and the world;

(g) career development skills to enable them to deliberately choose and pursue their life's work; and

(h) knowledge and skills, including the importance of teamwork and life-long learning, to enable them to participate successfully in post-secondary education and gainful employment in an expanding international economy.

193-E:3 Methodology For Calculating The Per Pupil Cost Of An Adequate Education

I. Definitions as used 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 section 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 section 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% 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) The total statewide aggregated cost shall be adjusted by deducting the amount of the following revenues attributable to the elementary school level:

1. tuition fees counted as revenue by receiving districts;

2. other revenue from local sources except food service revenue and sale of fixed food service assets;

3. revenue from state except for foundation aid, school building aid, vocational school tuition and transportation, vocational school building, and child nutrition;

4. cost of operating restricted federal grant programs except child nutrition deducted on the basis of revenue;

5. unrestricted grants and other revenue from the federal government.

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 tuition and 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 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 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 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 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 meet the following quality standards.

I. By June 30, 2000, and every three years thereafter, each school district, through a process involving parents, teachers, business people, and other community members, shall prepare and implement a local education improvement and assessment plan aligned with the statewide education improvement and assessment program established in RSA 193-C that is designed to improve student achievement within each school in the district. The plan shall be approved by the state board of education. At a minimum, the plan shall include:

(a) high content and achievement standards for all students;

(b) school and district improvement goals based on reported data on educational indicators;

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

(d) role of support services and programs;

(e) role of instructional leadership, including strategies to promote family and community involvement; and

(f) staff evaluation and standards-based professional development.

II. Each school district shall demonstrate measurable progress from year to year in meeting or exceeding its own school and district indicators for improvement established by the school district in accordance with rules adopted by the state board of education. Indicators for improvement shall be established in the following areas:

(a) performance on state tests administered pursuant to RSA 193-C;

(b) attendance and drop-out rates;

(c) school environment indicators, such as safe-schools data and student, staff, and parental satisfaction;

(d) access to technology;

(e) proportion of students going on to post-secondary education; and

(f) proportion of students demonstrating success in post-secondary education and the workplace.

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. By June 30, 2002, and every three years thereafter, the commissioner of education shall determine the extent to which each school district is meeting the quality standards established in RSA 193-E:4, I, II and III.

V. A school district that meets or exceeds the quality standards shall receive formal recognition from the state board of education and the governor. Such school districts shall be eligible to access a special projects fund administered by the department of education. Funds shall be used to enhance and disseminate best practices.

VI. A school district that does not meet the quality standards shall be designated as a district in need of assistance and the department of education shall work cooperatively with local officials to initiate the following sequence of actions:

(a) Within one month of this designation, 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 to the local school board and the state board of education. This report shall be issued within four months of the team's appointment. Based on this report, the local school board and superintendent shall, within six months of the issuance of the report, prepare a corrective action plan and submit it to the state board of education for approval.

(b) If, within two years of approval of the corrective action plan by the state board of education, the school district does not meet the goals in the corrective action plan, the commissioner of education shall assign a technical assistance advisor, who is authorized to access a state improvement fund, to provide assistance to the local school district staff in the implementation of the approved corrective action plan.

(c) If, within two additional years, the school district has not met the goals in the approved corrective action plan, the state board of education shall either continue the involvement of the technical assistance advisor or appoint a peer review team consisting of a representative of the local school district, an appointee of the state board of education and a third member chosen by the local and state representative to advise the school district's superintendent and the local school board relative to the implementation of the approved corrective action plan until the goals of the approved correction action plan are met.

VII. No later than December 1, 1998, and annually thereafter, the department of education shall issue an annual report on the condition of education statewide and on a district-by-district basis. This document shall include demographic and student performance data as well as other relevant statistics. Comparisons with state averages shall be provided as appropriate. 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.

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

IX. 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 three 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, business people, 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 to enhance local capacity.

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

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, five-year cycle such that no more than two frameworks are being reviewed at the same time.

IV. No later than June 30, 1999, the state board of education shall adopt rules for the approval of the local education improvement and assessment plan as required in RSA 193-E:4, I.

V. No later than June 30, 1999, the state board of education shall adopt rules for the establishment of indicators for improvement as required in RSA 193-E:4, II.

VI. No later than June 30, 2001, the state board of education shall adopt rules for the approval of corrective action plans as required in RSA 193-E:4, VI(a).

VII. The department of education shall implement credible procedures to monitor compliance with school approval standards.

VIII. A special projects and district improvement fund shall be established in the department of education. The department of education shall use funds appropriated for this program to provide grants to school districts that meet or exceed quality standards to allow them to enhance and disseminate best practices. The department of education shall also use funds appropriated for this program to support the implementation of corrective action plans in school districts that have been designated as being in need of assistance. 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" shall mean "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 two calculations:

(a) the amount calculated in accordance with part I of this section; 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 shall appropriate the funds necessary to make the payments required by RSA 193-E:7. For any fiscal year, if the appropriation is not sufficient to fully fund the state grants for education under this section, any shortfall shall be a charge against any funds in the treasury not otherwise appropriated. The governor is authorized to draw a warrant for these funds out of any such unappropriated funds.

III. The payments required by RSA 193-E:7 shall be made over the biennium in four 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 section IV below 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. 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 a constitutionally adequate education for the pupils in that district as determined under RSA 193-E:3 was used in accordance with section IV above. 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."

3 Creation of committee to study costs of providing constitutionally adequate education and methods of distributing grants to municipalities.

(a) On January 1, 1999, a study committee 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.

(b) The issues considered should include, but not be limited to, cost control, special education and unique demographic factors.

(c) The study committee shall include: three members of the senate appointed by the president of the senate; three members of the house of representatives appointed by the speaker of the house; three individuals appointed by the governor; the commissioner of the department of education or designee; and the commissioner of the department of revenue administration or designee. No more than two of the committee members appointed by the president or the speaker may represent the same political party. The governor shall designate one of the committee members to serve as the chairperson.

(d) The study committee shall issue its report and recommendation to the legislature and the governor no later than December 1, 1999. 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 biennium beginning July 1, 2001.

(e) The sum of $1 for the fiscal year ending June 30, 1999, is hereby appropriated to the department of education for the purposes of this section. This sum shall be non-lapsing. The governor is authorized to draw a warrant for this sum out of any money in the treasury not otherwise appropriated.

4 Creation of committee to study special education issues.

(a) By August 1, 1998, a committee 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 committee shall include: three members of the senate appointed by the president of the senate; three members of the house of representatives appointed by the speaker of the house; three individuals appointed by the governor; the commissioner of the department of education or designee; and the commissioner of the department of revenue administration or designee. No more than two of the committee members appointed by the president or the speaker may represent the same political party. The governor shall designate one of the committee members to serve as the chairperson. The committee's report shall be filed with the legislature and the governor by December 30, 1998.

(b) The sum of $1 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 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.

6 Transition during first biennium. For the biennium beginning July 1, 1999, 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.

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

8 New Section; State Education Tax. RSA 76:3, State Tax, 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 Chapter 72 and 73.

9 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.

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

The selectmen shall seasonably assess all state and county taxes for which they have the warrants of the commissioner of revenue administration [state] 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.

11 New Section; Commissioner's Warrant. RSA 76:8, State Treasurer's Warrant, 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 RSA 76:8, 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.

12 New Section; Commissioner's Report. RSA 76:9, State Treasurer's Report, is repealed and reenacted to read as follows:

RSA 76:9 State Treasurer'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.

13 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, 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.

14 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.

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

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 fall enrollment, teacher and administrator census, and average teacher salary, [operation of each school district] 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 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, that all of the information contained in this document is true, accurate and complete."

16 Reports Required. Amend paragraphs III and V of RSA 198:4-d 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. 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." [Failure to file may subject the noncomplying city or school district to the penalty provided in RSA 198:4-f.]

* * *

V. When [If] 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).

17 Duties of Commissioner. Amend the introductory paragraph, paragraph V, and paragraph XIII 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, the commissioner [he] shall:

* * *

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.

* * *

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.

18 New Paragraph; Duties of Commissioner. Amend RSA 21-J:3 by inserting after paragraph 24 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.

19 New Section; Division of Property Appraisal. RSA 21-J:9, Division of Property Appraisal, is repealed and reenacted to read as follows:

RSA 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:

(a) Assisting and supervising municipalities and appraisers in appraisals and valuations as provided in RSA 21-J:10, 21-J:11 and 21-J:11-a.

(b) Appraising state-owned forest and recreation land under RSA 227-H and RSA 216-A.

(c) 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.

(d) Preparing a standard appraisal manual for use of assessing officials, and holding meetings throughout the state with such officials to instruct them in appraising property.

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

RSA 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 six months prior to and six 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 as follows:

III. If less than 2% 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 six months prior to and six 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 ratios in adjoining cities, towns or unincorporated places.

(c) Include arm's length sales or transfers in the city, town or unincorporated place, within two and one half 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.

21 New Section; Appraisals of Property for Ad Valorem Tax Purposes. RSA 21-J:11, Appraisers of Taxable Property, 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 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 oversee 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) Assure 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 may delay the setting of a town, city, or other governmental division's annual tax rate until such time as the commissioner is satisfied as to the accuracy and completeness of the appraisal. If necessary, the commissioner may use the prior year's valuation, as adjusted, to establish the tax rate.

IV. The commissioner shall promulgate rules pursuant to 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 oversight.

22 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.

23 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 on or before December 31 of each year.

24 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 subsection (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.

25 Findings; Policy Statement. Amend paragraphs I, II(c) and II (e) of RSA 21-N:1 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.

II. In order to provide general guidance to the state department of education established by this chapter, the general court declares the following to be the policy of the state of New Hampshire:

* * *

(c) The paramount goal of the state shall be to provide a constitutionally adequate [quality] 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 RSA 193-E [sound basic education].

* * *

(e) In accordance with RSA 193-E, the [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.

26 Duties of Commissioner. Amend paragraph VIII of RSA 21-N:4. 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, Advancing Better Classrooms.

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

28 New subparagraph; Rulemaking. Amend RSA 21-N:9, I by inserting following subparagraph y the following new subparagraph:

(z) The provision for a constitutionally adequate education as authorized by RSA 193-E:5.

29 Authority. Amend RSA 71-B:5, I and II to read as follows:

It shall be the duty of the board and it shall have power and authority:

I. To hear and determine all matters involving questions of taxation, except equalized valuation of property, properly brought before it. Such matters may be brought before the board at the pleasure of the taxpayer or as otherwise provided by law. In determining matters before it, the board may institute its own investigation, or hold hearings, or take such other action as it shall deem necessary.

II. To hear and determine [any] appeals by towns relating to the equalized valuation of property finally determined [equalization of valuation performed] by the commissioner of revenue administration pursuant to RSA 21-J:3, XIII. Any town aggrieved by its [an] equalized valuation as determined by the commissioner of revenue administration must appeal to the board in writing within 10 [30] days of notice [the town's notification] of its final [the] equalized valuation by the commissioner. The board shall hear and make a final ruling on such appeal within 60 days of its receipt by the board. Appeals which have not been finally ruled upon by the board on or before the expiration of such 60 day period shall be deemed denied.

30 New Paragraph; Order for Reassessment. Amend RSA 71-B:16 by replacing the period at the end of paragraph IV with "; and" and inserting after paragraph IV the following new paragraph:

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

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

RSA 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 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.

(c) The acreage included in the sale.

(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 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.

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

33 Repeal. RSA 78-B:10-a, Real Estate Transfer Questionnaire, is repealed.

34 Repeal. RSA Chapter 82, Taxation of Railroads, is repealed.

35 Repeal. RSA Chapter 83-D, Tax on Nuclear Station Property, is repealed.

36 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:11 [RSA 21-N:9]:

37 Repeal. Paragraph XI of RSA 186:11, relative to local funds, is repealed.

38 Appropriations; How Used. Amend the introductory paragraph and paragraph III of RSA 186:13 to read as follows:

Except for money provided pursuant to RSA 193-E:6-9, all other [All] 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:

* * *

III. [Equalization and General Aid. For equalizing educational opportunity and] Educational improvement for public elementary and high schools.

39 Repeal. Paragraph IX of RSA 186:13, tuition, is repealed.

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

It is hereby declared to be the policy of the state that all children in New Hampshire be provided with equal access to a constitutionally adequate education [educational opportunities]. 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.

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

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.

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

It shall be the duty of the school board to provide a constitutionally adequate [at district expense,] elementary and secondary education for [to] 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.

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

If the school board of any district shall decide that, by reason of special conditions or circumstances, the maintenance of approved [standard] 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.

44 Repeal. RSA 189:3, Other Modifications, is repealed.

45 Repeal. RSA 189:4, Decisions of State Board, is repealed.

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

47 Approved School. RSA 189:24 is retitled and amended to read as follows:

189:24 Approved School

An approved [A standard] 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 furniture, books, maps and other necessary appliances, taught 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.

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

49 Duty of Parent; Compulsory Attendance by Pupil; Change in Reference. Amend paragraph I

(c) of RSA 193:1 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 his 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 193-E:6-9 [RSA 198:27-37].

50 Statement of Purpose. Amend paragraph VI of RSA 193-C:1 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 as a measure of educational adequacy consistent with RSA 193-E.

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

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

52 Local Education Improvement and Assessment Plan; Assistance Program. Amend RSA 193-C:9, I by amending the introductory paragraph as follows and inserting a new subparagraph (e) following subparagraph (d):

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

* * *

(e) The components specified in RSA 193-E:4, I. 53 Local Education Improvement and Assessment Plan; Assistance Program. Amend RSA 193-C:9, II(c)-(d) by amending subparagraph (c) as follows, by inserting a new subparagraph (d) following subparagraph (c), and by redesignating existing subparagraph (d) as subparagraph (e) and amending it as follows:

(c) A strong emphasis shall be placed on identifying distinguished educators [model teachers in the areas included in the statewide education improvement and assessment program] 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 Departments 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)[(d)] In implementing this program, the department may enter into grants or contracts with school districts, school administrative units, institutions of higher education, regional consortia, organizations and private businesses. Grant recipients and contractors shall work in coordination with, and under the broad supervision of, the department of education.

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

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

Any school district may make a contract with an approved public academy[,] or public high school [or other literary institution] located in this 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.

56 Repeal. RSA 194:23-c, Standards and Uniformity, is repealed.

57 Repeal. RSA 194:23-d, State Financial Aid, is repealed.

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

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.]

59 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 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 [portion of foundation aid], all resident pupils shall be counted, regardless of which public school they may attend.

60 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 determine the charter school's curriculum to be used to deliver a constitutionally adequate education and develop the school's annual budget.

61 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 a constitutionally adequate education, home education, minimum standards, student records, sexual harassment, and other matters as may from time to time occur.

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

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.

63 Repeal. RSA 198:1, Annual Tax, is repealed.

64 Repeal. RSA 198:2, Expenditure, is repealed.

65 Repeal. RSA 198:3, Penalty, is repealed.

66 Repeal. RSA 198:4, Estimates, is repealed.

67 Repeal. RSA 198:4-f, Penalty for Failing to File Report, is repealed.

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

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, including the amounts appropriated pursuant to RSA 193-E:9 and such other sums [with] such [alterations thereof] 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.

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

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] Any town in which national forest lands and land held by the state for operation and development as state forestland, 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.

70 New Section; Special Fund for Moneys Received from Sweepstakes Commission. RSA 284:21-j, relative to use of sweepstakes revenues, 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.

71 Positions Established; Appropriations.

(a) 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:

1. Technical Support Specialist III; and

2. Technical Support Specialist V.

(b) 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 two positions created in section (a) above. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

(c) 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.

72 Repeal. The footnote that applies to Program Appropriation Unit (PAU) 01-07-01-03 class line 07, Agency Income, is hereby repealed.

73 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.

74 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 affect without the invalid provisions or applications and to this end the provisions of this act are severable.

75 Effective Dates.

I. Section 72 of this act shall take effect on June 30, 1998.

II. Sections 34 and 35 of this act shall take effect March 31, 1999.

III. Sections 7 and 70 of this act shall take effect June 30, 1999.

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

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