SECTION 1.  Subsection (a) of section 1J of chapter 69 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by adding the following paragraph:-

If a school district is designated as chronically underperforming pursuant to section 1K or has 2 or more schools or one school enrolling more than 1,000 students designated as requiring assistance or intervention pursuant to the school accountability system established by the board, the commissioner may initiate the establishment of an innovation partnership zone pursuant to subsection (d) of section 92A of chapter 71.

SECTION 2.  Chapter 71 of the General Laws, as so appearing, is hereby amended by inserting after section 92 the following section:-

Section 92A.  (a) For the purposes of this section, the following words shall have the following meanings, unless the context clearly requires otherwise:–

“Board”, the board of elementary and secondary education.

“Board of directors”, the board of directors of an Innovation Partnership Zone.

“Commissioner”, the commissioner of elementary and secondary education within the executive office of education.

“Innovation partnership zone”, a group of at least 2 public schools or one public school enrolling more than 1,000 students operating within a school district, hereinafter referred to as member schools, that is governed by a board of directors and operated pursuant to an approved innovation partnership zone proposal.

“Receiver”, for a district declared chronically underperforming pursuant to section 1K of chapter 69, the non-profit entity or individual designated by the board to exercise the powers otherwise belonging to the superintendent and the school committee.

“School district”, the school department of a city, town, or regional school district.

“Superintendent”, the superintendent of the school district.

(b)(1) An innovation partnership zone shall be established for the purpose of improving school performance and student achievement through increased school-level autonomy and flexibility.  An innovation partnership zone and its member schools shall have autonomy and flexibility in the following areas: (i) curriculum; budget; (ii) school schedule and calendar; (iii) staffing policies and procedures, including waivers from or modifications to collective bargaining agreements; (iv)professional development; and (v) school district policies and procedures, including those related to procurement, human resources, and operations. 

(2) Students shall be assigned to an innovation partnership zone member school based on the school district’s existing student assignment system, except as otherwise provided in the memorandum of understanding developed pursuant to subsection (h).  A student who is enrolled in a school at the time it becomes a member school of an innovation partnership zone shall have the right to remain enrolled in the school if the student’s parent or guardian so chooses.  Any costs incurred through the operation of an alternative school assignment system shall be covered by the funding allocated to the innovation partnership zone.

(3) An innovation partnership zone may be initiated either by the local community, as set forth in subsection (c), or the commissioner, as set forth in subsection (d).  An innovation partnership zone initiated pursuant to subsection (c) shall not include schools identified as underperforming or chronically underperforming pursuant to section 1J of chapter 69 unless their inclusion is approved by the commissioner.  An innovation partnership zone initiated pursuant to subsection (d) shall be only in a school district that is designated as chronically underperforming pursuant to section 1K of chapter 69 or that has (i) 2 or more schools or (ii) 1 school enrolling more than 1,000 students designated as requiring assistance or intervention pursuant to the school accountability system established by the board.  An innovation partnership zone may be initiated in a school district designated as chronically underperforming pursuant to section 1K of chapter 69 only by the commissioner.

(c)(1) A superintendent, mayor, local teacher’s union, group of at least 3 school committee members, or majority of teachers at each of 2 or more schools or at one school enrolling more than 1,000 students within the school district shall have the authority to initiate a process to establish or expand an innovation partnership zone by submitting an innovation partnership zone proposal to the school committee, consistent with regulations established by the board. The proposal shall be submitted in partnership with an eligible entity or group, as defined in subsection (e), that seeks to develop and administer the innovation partnership zone and shall include a detailed description of the innovation partnership zone’s governance structure, including a process and criteria for selecting members of the board of directors, in accordance with subsection (f). 

(2) A majority of parents and guardians at each of 2 or more schools that have been designated as requiring assistance or intervention pursuant to the school accountability system established by the board or a majority of parents and guardians at one school enrolling more than 1,000 students that has been so designated may petition the school committee to initiate a process to establish or expand an innovation partnership zone.  Within 30 days of receiving a parent petition, the school committee shall issue a request for proposals from eligible entities or groups, as defined in subsection (e), that have interest in developing and administering an innovation partnership zone.  Proposals in response to a request shall be submitted to the school committee no later than 60 days following the issuance of the request.

(3) Notwithstanding paragraphs )(1) and (2) of this subsection, a school committee, by a majority vote, may issue a request for innovation partnership zone proposals from eligible entities or groups, as defined in subsection (e),  that have interest in developing and administering an innovation partnership zone.

(4) Within 30 days of receipt of an innovation partnership zone proposal or proposals, the school committee shall appoint a screening committee in consultation with the superintendent and the local teacher’s union president.  Such screening committee shall include at least 2 educators who work in the school district and 2 parents or guardians with children who are enrolled in the schools that are under consideration for inclusion in the innovation partnership zone, as well as other individuals representing key community stakeholders and employers.  The screening committee shall provide the school committee with a written report and written recommendation regarding the proposal or proposals within 60 days of its appointment.  The school committee shall act on the recommendation within 60 days, following not less than 1 public hearing held by the school committee.  If the school committee approves an innovation partnership zone proposal, it shall appoint the members of the innovation partnership zone board of directors in accordance with subsection (f) and the approved innovation partnership zone proposal.

(d) The commissioner shall have the authority to initiate or expand an innovation partnership zone in a school district, following consultation with the mayor, school committee and superintendent or receiver, and other community leaders and stakeholders, by submitting an innovation partnership zone proposal to the board in partnership with an eligible entity or group, as defined in subsection (e), that seeks to develop and administer the innovation partnership zone.  The commissioner may issue a request for innovation partnership zone proposals from eligible entities and groups that have an interest in developing and administering an innovation partnership zone in a school district.  The commissioner shall be responsible for reviewing, evaluating, and selecting from among such proposals in determining a proposal to be submitted to the board.  The board shall act on the commissioner’s innovation partnership zone proposal within 90 days.  A proposal by the commissioner to initiate or expand an innovation partnership zone in a school district that is not designated as chronically underperforming shall include only schools that have been designated as requiring assistance or intervention.

If the board approves the innovation partnership zone proposal, the commissioner shall appoint the innovation partnership zone’s board of directors, in accordance with subsection (f), following consultation with local stakeholders in the school district community where the Innovation Partnership Zone will be or is located.

(e) An eligible entity or group that may develop and administer an innovation partnership zone shall include nonprofit organizations, institutions of higher education, and groups of experienced educators.  An eligible entity or group shall submit an innovation partnership zone proposal in accordance with regulations established by the board.  The proposal shall include a detailed description of the innovation partnership zone’s governance structure, including proposed members of the board of directors, in accordance with subsection (f).

(f) A board of directors composed of at least 5 but not more than nine members, all of whom shall be unpaid, shall govern the innovation partnership zone and shall be a public entity for the purposes of state law.  Each member of the board of directors shall comply with the requirements of chapter 268A, including with respect to disclosure and reporting, and shall serve without compensation except that each member shall be reimbursed for necessary expenses incurred in travelling to and from meetings.  The majority of the members of the board of directors shall be persons who are not elected, appointed, or employed by any municipal entity of the school district community in which the innovation partnership zone is located.  A majority of the members of the board of directors shall reside in the school district community in which the innovation partnership zone is located or shall have previously lived or worked in the community or region for at least ten years.  Individuals who are serving in elected or appointed positions in the school district or community in which the innovation partnership zone is located may serve as designated ex officio members of the board of directors.  Priority shall be given to appointing innovation partnership zone board members who have relevant professional experience in education, youth development, management, and finance.  To the extent possible, the board of directors should be broadly representative of the gender, racial, and ethnic diversity of the community.

The board of directors shall have governance authority over the innovation partnership zone and its member schools consistent with the approved innovation partnership zone proposal and the 5 year operating plan developed pursuant to subsection (g), provided, however, that the school district in which the innovation partnership zone is located shall remain the employer of record for all other purposes.  Consistent with its 5year operating plan, developed pursuant to subsection (g), the board of directors may hire staff; contract with an eligible entity or group to administer the innovation partnership zone and with third parties to provide services to member schools; contract with a third party for the management of any member school; change the existing organizational structure or grade spans of a member school; and apply to the board to convert any member school to a Horace Mann charter school, as defined in subsection (c) of section 89 of chapter 71. The creation of an innovation partnership zone shall not diminish or negate any powers granted to the commissioner or board in sections 1J and 1K of chapter 69.

(g) The board of directors, in partnership with the eligible entity or group selected to develop and administer the innovation partnership zone shall develop and approve a detailed 5 year operating plan that is consistent with the innovation partnership zone proposal approved by the school committee pursuant to subsection (c) or the board pursuant to subsection (d), following consultation with representatives of the school district and the affected schools and local stakeholder and community groups, in accordance with regulations established by the board.  The 5 year operating plan shall include specific proposals for establishing teacher leadership teams to participate in school-level decision making in collaboration with school principals or executive directors.

(h) Upon approving the 5 year operating plan, the board of directors shall enter into a 5 year memorandum of understanding with the superintendent or designee for final approval by the school committee, provided that for an innovation partnership zone established in a school district designated as chronically underperforming, the board of directors shall enter into a memorandum of understanding with the commissioner or receiver.  The memorandum of understanding shall include but not be limited to the following: (i) a detailed description of the division of responsibilities between the board of directors and the school committee or, for a district designated as chronically underperforming, the receiver; (ii) the services that shall be provided by the school district to the innovation partnership zone’s member schools and the amount of funding that shall be allocated by the school committee or receiver to provide such services; (iii) a detailed budget and financial agreement, including the allocation of per-pupil funding for the innovation partnership zone and its member schools; provided that per-pupil funding for the member schools shall be based on a formula that takes into account the characteristics of the students enrolled in the member schools and shall be not less than 85 per cent of the average per-pupil funding for the school district as a whole; (iv) the necessary activities to successfully transfer the management of the member schools to the board of directors; (v) a description of the anticipated process by which the school membership of the innovation partnership zone may be altered as appropriate and necessary; (vi) any changes to the process by which students are assigned to the innovation partnership zone, including opt-in or opt-out policies; and (vii) a schedule for periodic reporting from the board of directors to the school committee or, for a district designated as chronically underperforming, the commissioner.

The memorandum of understanding shall include student performance goals and measures based on student outcome data, including, but not limited to: (i) student achievement on the Massachusetts Comprehensive Assessment System, or any successor statewide assessment system approved by the board pursuant to section 1I of chapter 69; (ii) other measures of student achievement, approved by the commissioner, as appropriate; (iii) student promotion, graduation rates, and dropout rates; (iv) achievement data for different subgroups of students, including low-income students as used for the purposes of the chapter 70 school aid program, limited English-proficient students, and students receiving special education; and (v) student attendance, suspension, and expulsion rates.

The board shall promulgate regulations establishing the method for calculating the amount of per-pupil funding to be allocated by the school committee or receiver to the board of directors.

For an innovation partnership zone initiated pursuant to subsection (c), any issues that cannot be resolved between the board of directors and the superintendent or designee in the memorandum of understanding shall be resolved by the school committee, based on a determination of what is necessary to implement the 5 year operating plan and to achieve the identified student performance goals, provided that, if such an innovation partnership zone has a member school designated as requiring assistance or intervention, the commissioner shall appoint an arbitrator to settle any issues not resolved by the board of directors and superintendent or designee.  For an innovation partnership zone initiated pursuant to subsection (d), the commissioner shall determine the student performance goals and measures and resolve any outstanding issues related to the memorandum of understanding.

The board of directors shall meet with and report at least annually to the school committee or its designee or, for innovation partnership zones established in school districts designated as chronically underperforming, the commissioner or receiver to discuss the memorandum of understanding provisions and to review progress on student performance goals.  The board of directors may terminate the memorandum of understanding without cause, effective at the completion of a school year, so long as it provides not less than 6 months’ notice of the termination to the school committee for innovation partnership zones initiated under subsection (c) or to the commissioner for innovation partnership zones initiated under subsection (d).

(i) Upon the execution of the memorandum of understanding, the board of directors and local teacher’s union shall meet to negotiate waivers or modifications to the applicable collective bargaining agreement, up to and including the development of a separate collective bargaining agreement, necessary for the implementation of the innovation partnership zone 5 year operating plan.  The bargaining shall be conducted in good faith and completed within 30 days. The agreement shall be subject to ratification within 10 business days by the bargaining unit members employed in the innovation partnership zone member schools at the time of negotiation.

For an innovation partnership zone with a member school that has been designated as requiring assistance or intervention, if the parties are unable to reach an agreement within 30 days or if the agreement is not ratified within 10 business days of completion by the bargaining unit members employed in the innovation partnership zone member schools at the time of negotiation, the parties shall immediately submit any unresolved issues to a joint resolution committee for a dispute resolution process.  The joint resolution committee shall be appointed within 3business days following the submission of unresolved issues for resolution and shall be composed of 3 members, 1 appointed by the local teacher’s union, 1 appointed by the board of directors, and 1 selected through the American Arbitration Association, with that organization forthwith providing to the parties a list of 3 conciliators, each of whom shall have professional experience in elementary and secondary education, from which the parties may agree upon a single conciliator.  In the event that the parties are unable to agree on a conciliator from among the list of 3 names within 3 business days, the American Arbitration Association shall select a conciliator from the list of 3 names.  Where an innovation partnership zone is established in a school district designated as chronically underperforming pursuant to section 1K of chapter 69, the commissioner may implement any change to a collective bargaining agreement made pursuant to said section 1K of said chapter 69.

The joint resolution committee shall conduct a dispute resolution process to be concluded within 10 business days of selection. This process shall be conducted in accordance with the rules of the American Arbitration Association; provided however, that all members of the joint resolution committee must agree to any resolution.  The fee for the process shall be shared equally between the parties.  Notwithstanding any other provision of this chapter, the unanimous decision of the joint resolution committee shall be dispositive of all the issues in dispute and shall be submitted to the parties within 10 business days of the completion of the process.  In the event that a unanimous decision is not submitted to the parties within 10 business days, the commissioner shall resolve all outstanding issues. The commissioner may extend any deadline in this subsection as needed.

In an innovation partnership zone that does not contain a member school designated as requiring assistance or intervention and that is not established in a school district designated as chronically underperforming, if negotiations between the board of directors and local teacher’s union have not resulted in a ratified agreement within 40 days, either party may petition the department of labor relations for the selection of an arbitrator.  The department of labor relations established pursuant to section 9O of chapter 23 shall select an arbitrator within 3 business days of the petition from a list submitted by the parties.  The arbitrator shall conduct a hearing within 14 days of the arbitrator’s selection.  The arbitrator shall consider the parties’ positions and the needs of the students in the school district. The arbitrator’s decision shall be consistent with the innovation partnership zone 5 year operating plan developed by the board of directors and the student performance goals identified in the memorandum of understanding.  The arbitrator shall, within 10 business days of the close of the hearing, submit a decision which shall be final and binding on the parties.

(j) An innovation partnership zone shall be established for the school year following approval of any modifications to the local teacher’s collective bargaining agreement in accordance with the regulations established by the board.

(k) At the end of each 5 year term, if the student performance goals defined in the memorandum of understanding have been substantially achieved and if all material responsibilities articulated in the 5 year operating plan have been fulfilled, the term for the innovation partnership zone shall be renewed at the board of director’s option for 5 years at which time the board of directors shall adopt another 5 year operating plan, following consultation with local stakeholder and community groups, in accordance with regulations established by the board.  Upon adopting a subsequent 5 year operating plan, the board of directors of an innovation partnership zone shall, as appropriate, update and renew the memorandum of understanding, including student performance goals and measures, consistent with the process specified in subsection (h).  If the renewed memorandum of understanding requires any waivers or modifications to the local teacher’s collective bargaining agreement, the board of directors shall initiate negotiations with the local teacher’s union, consistent with the process specified in subsection (i).

At the end of a 5 year term, for an innovation partnership zones established pursuant to subsection (c), any disputes between the school committee and the board of directors related to the achievement of student performance goals as defined in the memorandum of understanding or the fulfillment of material responsibilities as articulated in the 5 year operating plan shall be resolved through mediation led by the commissioner or designee, provided that, if such an innovation partnership zone has a member school designated as requiring assistance or intervention, the commissioner shall appoint an arbitrator to settle any unresolved issues following mediation.  In innovation partnership zones established pursuant to subsection (d), any such disagreements shall be resolved by the commissioner.

The board’s regulations shall establish procedures for the periodic review, renewal, and possible termination of an innovation partnership zone based on the board of director’s fidelity to the approved innovation partnership zone proposal, 5 year operating plan, and memorandum of understanding.

SECTION 3. The board of elementary and secondary education shall promulgate regulations necessary for the implementation of section 2 of this act not later than six months after enactment of this act.