Identical to S 112, filed 2/17/25.

Allows an eligible district (district), before the 2026-27 school year, to submit a Financial and Hiring Flexibility Plan (FHFP) to the State Board of Education (State Board), to allow the local board of education (local board) to decide certain matters related to the operation of the schools under the local board's control within the District, including the use of State funds, as provided in this act. Sets out the purpose of operating a District under an FHFP. Defines eligible district as a local school administrative unit that meets both of the following: (1) the local school administrative unit has the authority to levy and lay special taxes for the payment of bonds issued by the governing body of the unit and (2) the local school administrative unit had an allotted average daily membership of at least 5,000 for the 2023-24 school year. Requires local boards who want to operate under an FHFP to submit an FHFP that meets at least the specified components to the State Board, including a resolution adopted by the local board to implement the FHFP, by January 15, 2026, to begin operation of the plan with the 2026-27 school year. The specified FHFP components include a description of how the flexibility allowed under the FHFP will aid in meeting the following goals by the 2030-31 school year: ensuring that 100% of all students have completed a career development plan by the beginning of 12th grade, increase teacher retention to 90% retention rate, and increase the growth rate of any subgroups of students below the average growth rate in the 2024-25 school year to above the average overall growth rate for the State. Requires the State Board to approve an FHFP that meets the act's requirements by March 15, 2026, to begin implementation by July 1, 2026.

Requires the State Board to review the operation and student performance of a District operating under an FHFP following the end of the 2030-31 school year, and at least every three years thereafter, to ensure that the District is meeting expected academic goals and complying with all financial and observance requirements. Sets out the grounds under which the State Board must terminate an FHFP. Sets out provisions that apply in the event of an early termination. Provides that if an FHFP is terminated, the State Board may grant the District a waiver to the licensure requirements annually, for up to three years, to facilitate the transition to employment of fully licensed teachers. 

Allows, beginning July 1, 2026, for as long as a District is operating under an FHFP, up to 50% of the teachers in each school in the District to be employed as teachers despite not holding teacher licenses if they meet the requirements described below. Requires all teachers who are teaching core subject areas (mathematics, science, social studies, and language arts) to be college graduates. Requires teachers who are not licensed as a teacher by the State to complete preservice training in all of the following areas before beginning instruction: (1) the identification and education of children with disabilities, (2) positive management of student behavior, (3) effective communication for defusing and de-escalating disruptive or dangerous behavior, and (4) safe and appropriate use of seclusion and restraint.