Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 22.1-199.6 as follows:

§22.1-199.6. Mixed Delivery Preschool Fund and Grant Program established.

A. As used in this section, "mixed delivery" includes public, nonsectarian private, and faith-based early education programs.

B. There is hereby created in the state treasury a special nonreverting fund to be known as the Mixed Delivery Preschool Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. Any gifts, donations, grants, bequests, or other funds received on its behalf shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purposes of awarding grants to successful applicants under the Mixed Delivery Preschool Grant Program. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Superintendent of Public Instruction.

C. The Mixed Delivery Preschool Grant Program is hereby established for the purpose of awarding grants on a competitive basis to urban, suburban, and rural community applicants to field-test innovative strategies and evidence-based practices that support a robust system of mixed delivery preschool services in the Commonwealth.

D. The Virginia Early Childhood Foundation shall administer a request for proposals process to invite community applicants to respond with localized innovations and approaches to a system of mixed delivery preschool services.

E. A review and selection committee consisting of representatives of the Department of Education, the Virginia Early Childhood Foundation, and the House Appropriations Committee shall award grants to successful applicants. Priority shall be given to applicants who: (i) commit to pursuing models of local governance that promote the successful mixed delivery of preschool services, (ii) compare classroom and child outcomes among teachers with different credentials and qualifications, (iii) utilize incentives to encourage participation, and (iv) utilize strategic assessment to discern student outcomes. Applicants may request and the Board shall grant such waivers of regulations as are required to permit greater flexibility for the mixed delivery preschool services system.

F. Each grant recipient shall annually report on its mixed delivery preschool services system to the Chairmen of the House Committees on Education and Appropriations and the Senate Committees on Finance and Education and Health.

2. That six two-year grants shall be awarded under the Mixed Delivery Preschool Grant Program in each year of the 2016-2018 biennium.

3. That the provisions of this act shall expire on July 1, 2019.