Amends existing law to revise provisions regarding the Idaho Digital Learning Academy.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 940 BY WAYS AND MEANS COMMITTEE AN ACT1 RELATING TO EDUCATION; AMENDING SECTION 33-5502, IDAHO CODE, TO REVISE PRO-2 VISIONS REGARDING THE CREATION OF THE IDAHO DIGITAL LEARNING ACADEMY3 AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 33-5504, IDAHO4 CODE, TO REVISE PROVISIONS REGARDING THE DUTIES OF THE ACADEMY BOARD OF5 DIRECTORS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 33-5505,6 IDAHO CODE, TO REVISE DEFINITIONS AND TO DEFINE TERMS; AMENDING SEC-7 TION 33-1020, IDAHO CODE, TO REVISE PROVISIONS REGARDING IDAHO DIGITAL8 LEARNING ACADEMY FUNDING; AND DECLARING AN EMERGENCY AND PROVIDING AN9 EFFECTIVE DATE.10

Be It Enacted by the Legislature of the State of Idaho:11

SECTION 1. That Section 33-5502, Idaho Code, be, and the same is hereby12 amended to read as follows:13 33-5502. CREATION -- LEGISLATIVE FINDINGS -- GOAL. (1) There is hereby14 created the Idaho digital learning academy, a public school-choice learn-15 ing environment which that joins the best technology with the best instruc-16 tional practices. The Idaho digital learning academy as provided for in this17 chapter, is not a single department of state government unto itself, nor is18 it a part of any of the twenty (20) departments of state government autho-19 rized by section 20, article IV, of the constitution of the state of Idaho,20 or of the departments prescribed in section 67-2402, Idaho Code. It is leg-21 islative intent that the Idaho digital learning academy operate and be rec-22 ognized not as a state or local agency or department, but as a governmental an23 entity whose creation has been authorized by the state, much in the manner as24 other single purpose districts.25 (2) The legislature finds that it is in the best public interest to cre-26 ate the Idaho digital learning academy based on findings that indicate:27 (a) Technology continues to impact all facets of life, including the28 education of students of school age and adult learners the education of29 students in this state;30 (b) Systems for delivery of education are as diverse as the learners;31 and32 (c) Public school systems Idahoans are seeking high quality educa-33 tional choices within the public system, and schools and other edu-34 cation providers are aligning curriculum and assessment with state35 achievement standards; and.36 (d) The development of a comprehensive digital learning environment is37 cost prohibitive for individual school districts.38 (3) The goal of the digital learning academy is to provide choice, ac-39 cessibility, flexibility, quality, and equity in curricular offerings for40 students in this state. The digital learning academy shall function as a re-41 source to fill instructional gaps and is not intended to supplant regularly42

2 scheduled courses or full instructional programs offered by a student's lo-1 cal school district or public charter school. Courses offered shall include2 credit recovery, dual credit, courses not offered in small or rural school3 districts, courses required by the state of Idaho for graduation, and over-4 load courses.5

SECTION 2. That Section 33-5504, Idaho Code, be, and the same is hereby6 amended to read as follows:7 33-5504. DUTIES OF THE ACADEMY BOARD OF DIRECTORS. The board shall be8 responsible for ensuring that academy procedures and courses are in compli-9 ance with the rules of the state board of education and applicable statutes10 of the state of Idaho. In addition, the board shall:11 (1) Recommend policies to be established by rule of the state board for12 effecting the purposes of this chapter.13 (2) Employ or contract with staff as necessary and purchase such sup-14 plies and equipment as are necessary to implement the provisions of this15 chapter, which purchases shall be exempt from the state procurement act in16 chapter 92, title 67, Idaho Code. The percentage of personnel costs spent on17 staff classified as administration shall not exceed thirty percent (30%) of18 the total budget.19 (3) To enter Enter into contracts with any other governmental or public20 agency whereby the board agrees to render services to or for such agency in21 exchange for a charge reasonably calculated to cover the costs of rendering22 such service.23 (4) To accept Accept, receive, and utilize any gifts, grants, or funds24 and personal and real property that may be donated to it for the fulfillment25 of the purposes outlined in this chapter.26 (5) Employ or contract with necessary faculty and teaching staff who27 are fully certificated Idaho teachers or administrators, to design and de-28 liver planned curriculum content. The academy shall be exempt from the pro-29 visions of sections 33-513, 33-514, 33-514A, 33-515 and 33-515A, Idaho Code,30 and shall be exempt from chapter 53, title 67, Idaho Code. All teaching and31 educational staff of the academy shall be exempt, at will employees. The32 number of such staff shall largely be dictated by the number of courses under33 development, the number of courses offered, and the number of students par-34 ticipating in academy programs.35 (6) Obtain housing office space where actual operations of the academy36 are conducted by academy staff.37 (7) Contract with a service provider for delivery of academy courses38 online which shall be accessible twenty-four (24) hours a day, seven (7) days39 a week.40 (8) Ensure that the academy is accredited as established by rule of the41 state board of education.42 (9) Develop policy for earning credit in courses based on mastery of43 the subject, demonstrated competency, and meeting the standards set for each44 course.45 (10) Provide for articulating the content of certain high school46 courses with college and university courses in order to award both high47 school and undergraduate college credit.48

3 (11) Develop policies and practices which that provide strict applica-1 tion of time limits for completion of courses.2 (12) Develop policies and practices on accountability, both by the3 student and the teacher, and in accordance with the provisions of section4 33-5507, Idaho Code.5 (13) Develop policies and practices that prioritize courses provided6 in section 33-5502, Idaho Code.7 (13) (14) Manage the moneys disbursed to the academy board from the su-8 perintendent received by the academy.9 (14) (15) Set Subject to approval by the state board of education, set10 fees charged to school districts for student participation; fees charged11 for summer school; and fees charged to students and adults for professional12 development offerings any user of academy courses, including but not lim-13 ited to public school districts, public charter schools, private schools,14 individual students, and other public or private entities. Fees for all15 courses required by the state department of education for graduation shall16 be no more than forty dollars ($40.00). Fees for all courses not required for17 graduation shall be at least one hundred dollars ($100). Fees shall offset18 the total state reimbursement, not to exceed four hundred forty-five dol-19 lars ($445). Private entities shall not receive any state reimbursement and20 shall be subject to the full course fee.21 (15) (16) Contract with a certified public accounting firm to conduct an22 annual audit of the Idaho digital learning academy.23

SECTION 3. That Section 33-5505, Idaho Code, be, and the same is hereby24 amended to read as follows:25 33-5505. DEFINITIONS. As used in this chapter:26 (1) "Academy board," also referred to in this chapter as "the board"27 means the board of directors of the Idaho digital learning academy as such28 board is created in section 33-5503, Idaho Code.29 (2) "Host district" means an Idaho school district where the fiscal op-30 erations of the Idaho digital learning academy are housed until January 1,31 2009.32 (2) "Custom section" means an Idaho digital learning academy course33 in which all enrollments are from one (1) school district or public charter34 school.35 (3) "Emergency clause" means that a custom section is reimbursable when36 an unexpected departure of the teacher of record occurs and reimbursement37 is approved by the board or when, after documented recruitment efforts are38 made, the school is unable to hire a qualified teacher for the position.39 (3) (4) "Idaho digital learning academy" means an online educational40 course delivery program organized as a that is fully accredited school with41 statewide capabilities for the exclusive purpose of delivering accredited42 courses to Idaho resident students at no cost to the student unless the stu-43 dent enrolls in additional courses beyond full-time enrollment. Partici-44 pation in the academy by public school students shall be in compliance with45 academy and local school district policies. Adult learners and out-of-state46 students shall pay tuition commensurate with rates established by the state47 board with the advice of the superintendent, and such funds shall be included48

4 in the budget and audit of the academy's fiscal records. in grades 6 through1 12.2 (4) (5) "State board" means the Idaho state board of education. The3 board is authorized and directed, with the advice and recommendation of the4 academy board of directors, to promulgate rules to implement the provisions5 of this chapter.6 (5) (6) "Superintendent" means the Idaho state superintendent of pub-7 lic instruction.8

SECTION 4. That Section 33-1020, Idaho Code, be, and the same is hereby9 amended to read as follows:10 33-1020. IDAHO DIGITAL LEARNING ACADEMY FUNDING.11 (1)(a) An amount of four hundred forty-five dollars ($445) per en-12 rollment shall be distributed to support the Idaho digital learning13 academy, created pursuant to chapter 55, title 33, Idaho Code. For the14 purposes of this section, an "enrollment" shall be counted each time15 an Idaho school age child enrolls in an Idaho digital learning academy16 class course and continues to be enrolled in such class course past the17 deadline to withdraw, where such withdrawal would not result in the18 class course appearing on such child's transcript in any way. If a stu-19 dent disenrolls from an Idaho digital learning academy course within20 the withdrawal window, the fee shall be returned to the payer. A single21 child enrolled in multiple classes courses shall count as multiple en-22 rollments. Summer enrollments shall be included in the fiscal year that23 begins that summer. A registered course shall be eligible for state24 funding only if:25 (i) The student is enrolled in an Idaho school district or public26 charter school that is not entirely virtual;27 (ii) The course is not a driver's education course; and28 (iii) The student is not enrolled in a custom section unless the29 emergency clause is applicable.30 (b) If a student wants to enroll in an Idaho digital learning academy31 course that does not meet the criteria for state funding under this sec-32 tion, such student may enroll in such course if the school district or33 public charter school pays the fees for the course as set by the state34 board of education.35 (2) The state department of education shall make an estimated distri-36 bution of funds to the Idaho digital learning academy by no later than July37 31 of each fiscal year, consisting of eighty percent (80%) of the estimated38 funding for the fiscal year. The balance of all remaining funds to be dis-39 tributed, pursuant to the calculations in this section, shall be distributed40 by no later than May 15 of the same fiscal year. The state department of41 education shall reconcile the enrollments prior to the May 15 payment and42 withhold or recover any costs necessary to align the funding with verified43 enrollments. The joint finance-appropriations committee shall consider44 adjusting the per enrollment amount each legislative session by a percent-45 age increase equal to the percentage increase approved for salary increases46 for instructional and pupil service staff pursuant to section 33-1004B,47 Idaho Code, and for administrative and classified staff pursuant to section48 33-1004E, Idaho Code.49

5 (3) The academy board of directors shall report to the state board of1 education during the 2027 legislative session on the status of courses and2 provide recommendations and a strategic plan on how to manage digital learn-3 ing throughout the state.4

SECTION 5. An emergency existing therefor, which emergency is hereby5 declared to exist, this act shall be in full force and effect on and after6 July 1, 2026.7