The Innovation Schools Act of 2008, (§ 22-32.5-102, C.R.S. et.seq) was created in response to district and school leaders' interest in finding a way for districts to develop and implement innovative practices in a wide variety of areas for the purpose of improving student outcomes. The Act provides a formal process that allows schools to petition their local school boards for waivers from district-level policies and for school boards to petition to the Colorado State Board of Education for waivers from certain state-level laws and regulations that would otherwise apply to the schools and their districts. The Act furthers the belief that educational services must be tailored to meet the needs of the student populations it intends to serve. It also supports the belief that by providing flexibilities to school personnel, such as principals and teachers, they can determine the most effective and efficient manner in which to meet their students' needs, (§22-32.5.102, C.R.S., Legislative Declaration). In compliance with the reporting requirements provided in §22-32.5-111, C.R.S., the Colorado Department of Education (CDE) has prepared this report. This annual report draws from multiple sources including: (1) The CDE website; (2) CDE's "2013 Annual Innovation Report" released March 2013; and (3) The handbook, "Options for Autonomous Schools in Colorado: A Handbook for School and District Leaders" released in 2009. This handbook was a result of conversations among multiple education reform and business organizations interested in encouraging the development of autonomous schools in Colorado. Appendices include: (1) Required Components of an Innovation Plan; (2) Waivers Requested by Innovation School; and (3) Students Scoring Proficient of Advance in Innovation Schools.