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 or groups of schools, referred to as a zone, 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. In compliance with the reporting requirements provided in §22-32.5-111, C.R.S., the Colorado Department of Education (CDE) has prepared this annual report, which draws from multiple sources, including: (1) the CDE Innovation webpage; (2) CDE's Data and Accountability webpage, "SchoolView"; (3) CDE's "2016 Annual Innovation Report" released in March 2016; and (4) the handbook, "Options for Autonomous Schools in Colorado: A Handbook for School and District Leaders" released in 2009. This report is divided into the following parts: (1) The Innovation Act; (2) Overview of 2016-27 Innovation Schools; (3) Academic Performance; (4) Waivers; and (5) Legislative Updates. [For the 2016 report, see ED572287.]