Indiana 2022 1st Special Session

Indiana House Bill HB1014 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1014(ss)
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 4-6-2-1.5; IC 5-9-4; IC 6-1.1-20.3; IC 20-23;
7	7	IC 20-29-2-6.
8	8	Synopsis: Gary Community School Corporation. Establishes
9	9	procedures to appoint members to the governing body of the Gary
10	10	Community School Corporation. Establishes procedures for
11	11	transferring responsibility of financial and academic matters from the
12	12	emergency manager to the governing body. Removes obsolete
13	13	provisions and makes conforming amendments. Repeals provisions
14	14	relating to the election of advisory board members for the Gary
15	15	Community School Corporation.
16	16	Effective: May 1, 2023; July 1, 2023.
17	17	Smith V, Harris, Hatcher
18	18	July 29, 2022, read first time and referred to Committee on Rules and Legislative
19	19	Procedures.
20	20	2022(ss) IN 1014—LS 6045/DI 143 Introduced
21	21	Special Session of the 122nd General Assembly (2022)(ss)
22	22	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
23	23	Constitution) is being amended, the text of the existing provision will appear in this style type,
24	24	additions will appear in this style type, and deletions will appear in this style type.
25	25	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
26	26	provision adopted), the text of the new provision will appear in this style type. Also, the
27	27	word NEW will appear in that style type in the introductory clause of each SECTION that adds
28	28	a new provision to the Indiana Code or the Indiana Constitution.
29	29	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
30	30	between statutes enacted by the 2022 Regular Session of the General Assembly.
31	31	HOUSE BILL No. 1014(ss)
32	32	A BILL FOR AN ACT to amend the Indiana Code concerning
33	33	education.
34	34	Be it enacted by the General Assembly of the State of Indiana:
35	35	1 SECTION 1. IC 4-6-2-1.5, AS AMENDED BY P.L.163-2020,
36	36	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37	37	3 JULY 1, 2023]: Sec. 1.5. (a) Whenever any state governmental official
38	38	4 or employee, whether elected or appointed, is made a party to a suit,
39	39	5 and the attorney general determines that said suit has arisen out of an
40	40	6 act which such official or employee in good faith believed to be within
41	41	7 the scope of the official's or employee's duties as prescribed by statute
42	42	8 or duly adopted regulation, the attorney general shall defend such
43	43	9 person throughout such action.
44	44	10 (b) Whenever a teacher (as defined in IC 20-18-2-22) is made a
45	45	11 party to a civil suit, and the attorney general determines that the suit
46	46	12 has arisen out of an act that the teacher in good faith believed was
47	47	13 within the scope of the teacher's duties in enforcing discipline policies
48	48	14 developed under IC 20-33-8-12, the attorney general shall defend the
49	49	15 teacher throughout the action.
50	50	16 (c) Not later than July 30 of each year, the attorney general, in
51	51	17 consultation with the Indiana education employment relations board
52	52	2022(ss) IN 1014—LS 6045/DI 143 2
53	53	1 established in IC 20-29-3-1, shall draft and disseminate a letter by first
54	54	2 class mail to the residence of teachers providing a summary of the
55	55	3 teacher's rights and protections under state and federal law, including
56	56	4 a teacher's rights and protections relating to the teacher's performance
57	57	5 evaluation under IC 20-28-11.5.
58	58	6 (d) The department of education, in consultation with the Indiana
59	59	7 education employment relations board, shall develop a method to
60	60	8 provide the attorney general with the names and addresses of active
61	61	9 teachers in Indiana in order for the attorney general to disseminate the
62	62	10 letter described in subsection (c). Names and addresses collected and
63	63	11 provided to the attorney general under this subsection are confidential
64	64	12 and excepted from public disclosure as provided in IC 5-14-3-4.
65	65	13 (e) Whenever a school corporation (as defined in IC 20-26-2-4) is
66	66	14 made a party to a civil suit and the attorney general determines that the
67	67	15 suit has arisen out of an act authorized under IC 20-30-5-0.5 or
68	68	16 IC 20-30-5-4.5, the attorney general shall defend the school corporation
69	69	17 throughout the action.
70	70	18 (f) Whenever a member of the fiscal management board appointed
71	71	19 under IC 6-1.1-20.3-6.8 is made a party to a civil suit and the attorney
72	72	20 general determines that the suit has arisen out of an act by the fiscal
73	73	21 management board member that is authorized or required under
74	74	22 IC 6-1.1-20.3 or any other law, the attorney general shall defend the
75	75	23 fiscal management board member throughout the action.
76	76	24 (g) (f) As used in this subsection, "bridge authority" refers to the
77	77	25 New Harmony and Wabash River bridge authority established by
78	78	26 IC 8-16-15.5-2. Whenever:
79	79	27 (1) the bridge authority;
80	80	28 (2) a member of the bridge authority;
81	81	29 (3) an officer of the bridge authority; or
82	82	30 (4) an employee of the bridge authority;
83	83	31 is made a party to a civil suit and the attorney general determines that
84	84	32 the suit has arisen out of an act or omission of any person described in
85	85	33 subdivision (1), (2), (3), or (4), that is authorized or required under
86	86	34 IC 8-16-15.5 or any other law, the attorney general shall defend that
87	87	35 person throughout the action.
88	88	36 (h) (g) A determination by the attorney general under subsection (a),
89	89	37 (b), (e), or (f) or (g) shall not be admitted as evidence in the trial of any
90	90	38 such civil action for damages.
91	91	39 (i) (h) Nothing in this chapter shall be construed to deprive any such
92	92	40 person of the person's right to select counsel of the person's own choice
93	93	41 at the person's own expense.
94	94	42 SECTION 2. IC 5-9-4-7, AS AMENDED BY P.L.2-2014,
95	95	2022(ss) IN 1014—LS 6045/DI 143 3
96	96	1 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
97	97	2 JULY 1, 2023]: Sec. 7. (a) Except as provided in subsection (b) or (c),
98	98	3 an officeholder who elects to take the leave of absence described in
99	99	4 section 6 of this chapter shall give written notice that the officeholder
100	100	5 is taking a leave of absence for military service to the person or entity
101	101	6 designated in IC 5-8-3.5-1 to receive a resignation for the office the
102	102	7 officeholder holds.
103	103	8 (b) An officeholder who is:
104	104	9 (1) a justice of the supreme court, a judge of the court of appeals,
105	105	10 or a judge of the tax court; or
106	106	11 (2) a judge of a circuit, city, probate, or superior court;
107	107	12 shall give the written notice required by subsection (a) to the clerk of
108	108	13 the supreme court.
109	109	14 (c) An officeholder who holds a school board office shall give the
110	110	15 written notice required by subsection (a) to the person or entity
111	111	16 designated in IC 20-25-3, IC 20-25-4, IC 20-25-5, IC 20-23-12,
112	112	17 IC 20-23-12.1, IC 20-23-14, IC 20-23-15, IC 20-23-4, or IC 20-26 to
113	113	18 receive a resignation for the office the officeholder holds.
114	114	19 (d) The written notice required by subsection (a) must state that the
115	115	20 officeholder is taking a leave of absence because the officeholder:
116	116	21 (1) has been called for active duty in:
117	117	22 (A) the armed forces of the United States; or
118	118	23 (B) the national guard; and
119	119	24 (2) will be temporarily unable to perform the duties of the
120	120	25 officeholder's office.
121	121	26 SECTION 3. IC 5-9-4-8, AS AMENDED BY P.L.74-2017,
122	122	27 SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
123	123	28 JULY 1, 2023]: Sec. 8. (a) Except as provided in subsection (b) and
124	124	29 IC 36-5-6-9, during the officeholder's leave of absence, the
125	125	30 officeholder's office must be filled by a temporary appointment made
126	126	31 under:
127	127	32 (1) IC 3-13-4;
128	128	33 (2) IC 3-13-5;
129	129	34 (3) IC 3-13-6;
130	130	35 (4) IC 3-13-7;
131	131	36 (5) IC 3-13-8;
132	132	37 (6) IC 3-13-9;
133	133	38 (7) IC 3-13-10;
134	134	39 (8) IC 3-13-11;
135	135	40 (9) IC 20-23-4;
136	136	41 (10) IC 20-26;
137	137	42 (11) IC 20-23-12; IC 20-23-12.1;
138	138	2022(ss) IN 1014—LS 6045/DI 143 4
139	139	1 (12) IC 20-23-14;
140	140	2 (13) IC 20-23-15;
141	141	3 (14) IC 20-23-17;
142	142	4 (15) IC 20-23-17.2;
143	143	5 (16) IC 20-25-3;
144	144	6 (17) IC 20-25-4; or
145	145	7 (18) IC 20-25-5;
146	146	8 in the same manner as a vacancy created by a resignation is filled. A
147	147	9 temporary appointment may be made in accordance with the applicable
148	148	10 statute after the written notice required under section 7 of this chapter
149	149	11 has been filed.
150	150	12 (b) For an officeholder who:
151	151	13 (1) is:
152	152	14 (A) a justice of the supreme court, a judge of the court of
153	153	15 appeals, or a judge of the tax court; or
154	154	16 (B) a judge of a circuit, city, probate, or superior court; and
155	155	17 (2) is taking a leave of absence under this chapter;
156	156	18 the supreme court shall appoint a judge pro tempore to fill the
157	157	19 officeholder's office in accordance with the court's rules and
158	158	20 procedures.
159	159	21 (c) The person selected or appointed under subsection (a) or (b)
160	160	22 serves until the earlier of:
161	161	23 (1) the date the officeholder's leave of absence ends as provided
162	162	24 in section 10 of this chapter; or
163	163	25 (2) the officeholder's term of office expires.
164	164	26 (d) The person selected or appointed to an office under subsection
165	165	27 (a) or (b):
166	166	28 (1) assumes all the rights and duties of; and
167	167	29 (2) is entitled to the compensation established for;
168	168	30 the office for the period of the temporary appointment.
169	169	31 SECTION 4. IC 6-1.1-20.3-6.8, AS AMENDED BY P.L.43-2021,
170	170	32 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
171	171	33 JULY 1, 2023]: Sec. 6.8. (a) This section applies only to the Gary
172	172	34 Community School Corporation.
173	173	35 (b) The general assembly finds that the provisions of this section:
174	174	36 (1) are necessary to address the unique issues faced by the Gary
175	175	37 Community School Corporation; and
176	176	38 (2) are not precedent for and may not be appropriate for
177	177	39 addressing issues faced by other school corporations.
178	178	40 (c) As used in this section, the following definitions apply:
179	179	41 (1) "Chief academic officer" means the chief academic officer
180	180	42 appointed under subsection (j). (h).
181	181	2022(ss) IN 1014—LS 6045/DI 143 5
182	182	1 (2) "Chief financial officer" means the chief financial officer
183	183	2 appointed under subsection (i). (g).
184	184	3 (3) "School corporation" refers to the Gary Community School
185	185	4 Corporation.
186	186	5 (d) The Gary Community School Corporation is designated as a
187	187	6 distressed political subdivision for purposes of this chapter until the
188	188	7 school corporation's designation as a distressed political subdivision is
189	189	8 terminated as provided in section 13(b) of this chapter. on January 1,
190	190	9 2024. This designation as a distressed political subdivision is effective
191	191	10 regardless of whether the school corporation has submitted a petition
192	192	11 requesting to be designated as a distressed political subdivision. Until
193	193	12 the school corporation's designation as a distressed political
194	194	13 subdivision is terminated as provided in section 13(b) of this chapter,
195	195	14 the Gary Community School Corporation advisory board may not hold
196	196	15 a public meeting more often than once every three (3) months. This
197	197	16 limit on the number of meetings of the advisory board does not apply
198	198	17 to the emergency manager. The emergency manager shall hold a
199	199	18 monthly forum to provide an update on the Gary Community School
200	200	19 Corporation within the school district that is open to the general public.
201	201	20 During the period that the Gary Community School Corporation is
202	202	21 designated as a distressed political subdivision, the advisory board may
203	203	22 vote to:
204	204	23 (1) fill vacancies;
205	205	24 (2) select officers; or
206	206	25 (3) make appointments;
207	207	26 of the advisory board, and to present awards, recognition, and
208	208	27 certificates to employees or supporters of the school corporation.
209	209	28 (e) Until the school corporation's designation as a distressed
210	210	29 political subdivision is terminated as provided in section 13(b) of this
211	211	30 chapter, on January 1, 2024, the following apply to the emergency
212	212	31 manager appointed under section 7.5 of this chapter for the school
213	213	32 corporation:
214	214	33 (1) The emergency manager has the powers and duties specified
215	215	34 in this chapter.
216	216	35 (2) The emergency manager shall consider recommendations
217	217	36 from the fiscal management board and the advisory board,
218	218	37 superintendent and chief financial officer appointed under
219	219	38 IC 20-23-12.1, but the emergency manager has full responsibility
220	220	39 and authority related to financial and academic matters of the
221	221	40 school corporation, and the emergency manager may act, as
222	222	41 specified in this chapter, on these financial and academic matters
223	223	42 without the approval of the fiscal management board or the
224	224	2022(ss) IN 1014—LS 6045/DI 143 6
225	225	1 advisory board. superintendent and chief financial officer
226	226	2 appointed under IC 20-23-12.1.
227	227	3 (3) Notwithstanding section 7.5(d) of this chapter, the distressed
228	228	4 unit appeal board shall:
229	229	5 (A) determine the compensation of the emergency manager,
230	230	6 chief financial officer, and chief academic officer; and
231	231	7 (B) subject to subsections (i) (g) and (j), (h), pay the
232	232	8 emergency manager's, chief financial officer's, and chief
233	233	9 academic officer's compensation and reimburse the emergency
234	234	10 manager, chief financial officer, and chief academic officer for
235	235	11 actual and necessary expenses from funds appropriated to the
236	236	12 distressed unit appeal board.
237	237	13 (4) Before appointing the emergency manager, the distressed unit
238	238	14 appeal board shall interview at least one (1) resident of the city of
239	239	15 Gary as a candidate for the position. If the distressed unit appeal
240	240	16 board is not able to interview a resident of the city of Gary as a
241	241	17 candidate for the position, the distressed unit appeal board shall
242	242	18 interview at least one (1) individual who is a resident of Lake
243	243	19 County or northwest Indiana as a candidate for the position.
244	244	20 The appointment of the emergency manager for the school corporation
245	245	21 is terminated on the date the school corporation's designation as a
246	246	22 distressed political subdivision is terminated as provided in section
247	247	23 13(b) of this chapter.
248	248	24 (f) In addition to any other actions that the distressed unit appeal
249	249	25 board may take under this chapter concerning a distressed political
250	250	26 subdivision, for a distressed school corporation, the distressed unit
251	251	27 appeal board may also do any of the following:
252	252	28 (1) The distressed unit appeal board may delay or suspend, for a
253	253	29 period determined by the board, any payments of principal or
254	254	30 interest, or both, that would otherwise be due from the school
255	255	31 corporation on loans or advances from the common school fund.
256	256	32 (2) The distressed unit appeal board may recommend to the state
257	257	33 board of finance that the state board of finance make an interest
258	258	34 free loan to the school corporation from the common school fund.
259	259	35 The distressed unit appeal board shall determine the payment
260	260	36 schedule and the commencement date for the loan. If the
261	261	37 distressed unit appeal board makes a recommendation that such
262	262	38 a loan be made, the state board of finance may, notwithstanding
263	263	39 IC 20-49, make such a loan for a term of not more than ten (10)
264	264	40 years.
265	265	41 (3) The distressed unit appeal board may establish benchmarks of
266	266	42 financial improvement for the school corporation.
267	267	2022(ss) IN 1014—LS 6045/DI 143 7
268	268	1 (4) The distressed unit appeal board may provide a grant or grants
269	269	2 to the school corporation from funds appropriated to the
270	270	3 distressed unit appeal board, in amounts determined by the
271	271	4 distressed unit appeal board, to assist the school corporation in
272	272	5 overcoming short term financial problems.
273	273	6 (5) The distressed unit appeal board may make a recommendation
274	274	7 to the general assembly concerning the possible restructuring of
275	275	8 advances made to the school corporation from the common school
276	276	9 fund, including forgiveness of principal and interest on those
277	277	10 advances.
278	278	11 (g) The fiscal management board is established. The fiscal
279	279	12 management board consists of the following members:
280	280	13 (1) One (1) member appointed by the advisory board.
281	281	14 (2) One (1) member appointed by the mayor of the city of Gary.
282	282	15 (3) One (1) member, who must have experience working with or
283	283	16 for an urban school corporation, appointed by the secretary of
284	284	17 education.
285	285	18 (4) One (1) member, who must have experience working with or
286	286	19 for an urban school corporation, appointed by the state board of
287	287	20 education.
288	288	21 (h) The following apply to the fiscal management board and to the
289	289	22 members of the fiscal management board:
290	290	23 (1) The term of office of a member of the fiscal management
291	291	24 board is four (4) years, beginning on the date of appointment. A
292	292	25 member of the fiscal management board may be reappointed to
293	293	26 the fiscal management board. A member of the fiscal
294	294	27 management board may be removed for cause by the appointing
295	295	28 authority.
296	296	29 (2) A member of the fiscal management board must have the
297	297	30 following:
298	298	31 (A) At least three (3) years experience in financial
299	299	32 management.
300	300	33 (B) A meaningful background and work experience in finance
301	301	34 and business.
302	302	35 (C) An understanding of government contracts.
303	303	36 (D) Knowledge and experience in organizational effectiveness,
304	304	37 operations management, and implementing best practices.
305	305	38 (E) Experience in budget development and oversight.
306	306	39 (F) A demonstrated commitment to high professional and
307	307	40 ethical standards and a diverse workplace.
308	308	41 (G) An understanding of tax and other compliance
309	309	42 implications.
310	310	2022(ss) IN 1014—LS 6045/DI 143 8
311	311	1 (3) A member of the advisory board may not serve as a member
312	312	2 of the fiscal management board.
313	313	3 (4) The fiscal management board:
314	314	4 (A) shall make recommendations to the emergency manager;
315	315	5 and
316	316	6 (B) shall advise the emergency manager as requested by the
317	317	7 emergency manager.
318	318	8 (5) The members of the fiscal management board are not entitled
319	319	9 to any compensation for their service on the fiscal management
320	320	10 board.
321	321	11 (6) The fiscal management board is abolished, and the terms of
322	322	12 the members of the fiscal management board are terminated, on
323	323	13 the date the school corporation's designation as a distressed
324	324	14 political subdivision is terminated as provided in section 13(b) of
325	325	15 this chapter.
326	326	16 (7) Under the supervision of the emergency manager, the fiscal
327	327	17 management board shall serve as a liaison to and shall work
328	328	18 jointly with the distressed unit appeal board, the mayor of the city
329	329	19 of Gary, and the department of education to develop a transition
330	330	20 plan to address issues or questions related to:
331	331	21 (A) the designation of the school corporation as a distressed
332	332	22 political subdivision and the transfer of powers and duties to
333	333	23 the emergency manager under this chapter; and
334	334	24 (B) the potential impact of the transition on the community
335	335	25 and the school corporation.
336	336	26 (8) Under the supervision of the emergency manager, the fiscal
337	337	27 management board shall work jointly with the distressed unit
338	338	28 appeal board, the mayor of the city of Gary, and the department
339	339	29 of education to provide information on a regular basis to parents,
340	340	30 students, employees of the school corporation, and the public on
341	341	31 the status of the transition.
342	342	32 (i) (g) The emergency manager shall employ a chief financial officer
343	343	33 for the school corporation. The chief financial officer is an employee
344	344	34 of the school corporation. The chief financial officer shall report to the
345	345	35 emergency manager and shall assist the emergency manager appointed
346	346	36 for the school corporation and the fiscal management board in carrying
347	347	37 out the day to day financial operations of the school corporation. Before
348	348	38 July 1, 2019, the compensation of the chief financial officer shall be
349	349	39 determined by the distressed unit appeal board. Before July 1, 2019, the
350	350	40 compensation of the chief financial officer shall be paid from the funds
351	351	41 appropriated to the distressed unit appeal board. After June 30, 2019,
352	352	42 The compensation of the chief financial officer shall be determined by
353	353	2022(ss) IN 1014—LS 6045/DI 143 9
354	354	1 and paid by the school corporation. The chief financial officer:
355	355	2 (1) must possess, through both education and experience, an
356	356	3 understanding of finance and financial management; and
357	357	4 (2) must possess any other experience and must meet any other
358	358	5 requirements as required by the distressed unit appeal board to
359	359	6 ensure that the chief financial officer is qualified to carry out the
360	360	7 financial restructuring of the school corporation.
361	361	8 Before employing a chief financial officer under this subsection, the
362	362	9 emergency manager shall interview at least one (1) resident of the city
363	363	10 of Gary as a candidate for the position. If the emergency manager is not
364	364	11 able to interview a resident of the city of Gary as a candidate for the
365	365	12 position, the emergency manager shall interview at least one (1)
366	366	13 individual who is a resident of Lake County or northwest Indiana as a
367	367	14 candidate for the position.
368	368	15 (j) (h) The emergency manager shall employ a chief academic
369	369	16 officer for the school corporation, after consultation with the
370	370	17 department of education, who must have experience working with or
371	371	18 for an urban school corporation. The chief academic officer is an
372	372	19 employee of the school corporation. The chief academic officer shall
373	373	20 report to the emergency manager and shall assist the emergency
374	374	21 manager appointed for the school corporation and the fiscal
375	375	22 management board in carrying out the academic matters of the school
376	376	23 corporation. Before July 1, 2019, the compensation of the chief
377	377	24 academic officer shall be determined by the distressed unit appeal
378	378	25 board. Before July 1, 2019, the compensation of the chief academic
379	379	26 officer shall be paid from the funds appropriated to the distressed unit
380	380	27 appeal board. After June 30, 2019, The compensation of the chief
381	381	28 academic officer shall be determined by and paid by the school
382	382	29 corporation. The chief academic officer must:
383	383	30 (1) hold a valid license to teach in a public school under
384	384	31 IC 20-28-5;
385	385	32 (2) possess, through both education and experience, an
386	386	33 understanding of curriculum and academics; and
387	387	34 (3) possess any other experience and meet any other requirements
388	388	35 as required by the distressed unit appeal board to ensure that the
389	389	36 chief academic officer is qualified to carry out the academic goals
390	390	37 of the school corporation.
391	391	38 Before employing a chief academic officer under this subsection, the
392	392	39 emergency manager shall interview at least one (1) resident of the city
393	393	40 of Gary as a candidate for the position. If the emergency manager is not
394	394	41 able to interview a resident of the city of Gary as a candidate for the
395	395	42 position, the emergency manager shall interview at least one (1)
396	396	2022(ss) IN 1014—LS 6045/DI 143 10
397	397	1 individual who is a resident of Lake County or northwest Indiana as a
398	398	2 candidate for the position.
399	399	3 (k) (i) The chief financial officer and chief academic officer shall
400	400	4 assist the emergency manager in carrying out the emergency manager's
401	401	5 duties under this chapter.
402	402	6 (l) (j) The annual budget adopted by the emergency manager for the
403	403	7 school corporation must dedicate a significant part of the school
404	404	8 corporation's budget to eliminating, if any, the school corporation's
405	405	9 outstanding financial obligations. The emergency manager shall
406	406	10 attempt to negotiate with the creditors of the school corporation to
407	407	11 establish a plan specifying the schedule for paying each creditor. The
408	408	12 emergency manager shall submit the plan to the distressed unit appeal
409	409	13 board for approval. The distressed unit appeal board must:
410	410	14 (1) review the plan submitted by the emergency manager; and
411	411	15 (2) not later than sixty (60) days after the plan is submitted,
412	412	16 either:
413	413	17 (A) approve the plan as submitted by the emergency manager;
414	414	18 or
415	415	19 (B) modify the plan as submitted by the emergency manager
416	416	20 and then approve the modified plan.
417	417	21 (m) (k) The emergency manager shall consider any
418	418	22 recommendations from the fiscal management board, the advisory
419	419	23 board, and the mayor of the city of Gary Gary Community School
420	420	24 Corporation board of trustees established under IC 20-23-12.1 in
421	421	25 developing the school corporation's annual budget. The distressed unit
422	422	26 appeal board must review and approve the school corporation's annual
423	423	27 budget that is proposed by the emergency manager. When the
424	424	28 emergency manager submits the school corporation's proposed annual
425	425	29 budget to the distressed unit appeal board, the emergency manager
426	426	30 shall provide copies of the proposed annual budget to the fiscal
427	427	31 management board and the advisory board.
428	428	32 (n) (l) After considering any recommendations from the fiscal
429	429	33 management board, the advisory board, and the mayor of the city of
430	430	34 Gary, the emergency manager shall do the following:
431	431	35 (1) Conduct a financial and compliance audit of the operations of
432	432	36 the school corporation.
433	433	37 (2) Develop a written financial plan for the school corporation.
434	434	38 The object of the plan must be to achieve financial stability for
435	435	39 the school corporation, and the plan must include provisions for
436	436	40 paying all of the school corporation's outstanding obligations and
437	437	41 for paying all future obligations of the school corporation
438	438	42 (including any federal, state, or local taxes or assessments) in a
439	439	2022(ss) IN 1014—LS 6045/DI 143 11
440	440	1 timely manner.
441	441	2 (o) (m) In addition to the report required by section 8.5(c)(5) of this
442	442	3 chapter, the emergency manager, the chief financial officer, and the
443	443	4 chief academic officer shall report quarterly to the distressed unit
444	444	5 appeal board in accordance to the most recent contract with the
445	445	6 distressed unit appeal board and in a format specified by the
446	446	7 distressed unit appeal board. The report must include:
447	447	8 (1) information concerning the actions that the school corporation
448	448	9 is taking to improve the financial condition of the school
449	449	10 corporation; and
450	450	11 (2) any other information required by the distressed unit appeal
451	451	12 board.
452	452	13 The emergency manager shall report more frequently than quarterly if
453	453	14 requested by the distressed unit appeal board. The emergency manager
454	454	15 shall provide copies of the report to the fiscal management board, the
455	455	16 advisory board, and the mayor of the city of Gary. The emergency
456	456	17 manager shall present each report at a public meeting of the fiscal
457	457	18 management board.
458	458	19 (p) (n) The school corporation shall do the following:
459	459	20 (1) Publish a copy of each report under subsection (o) (m) on the
460	460	21 school corporation's Internet web site, along with a link to the
461	461	22 main page of the Indiana transparency Internet web site
462	462	23 established under IC 5-14-3.7 to provide access to financial data
463	463	24 for local schools.
464	464	25 (2) Make copies of each report available free of charge to the
465	465	26 public upon request.
466	466	27 (3) Provide copies of each report to the mayor of the city of Gary.
467	467	28 The mayor shall make copies of the reports available free of
468	468	29 charge to the public upon request.
469	469	30 (q) (o) The chief academic officer shall develop an education plan
470	470	31 to provide academic services to students in the school corporation and
471	471	32 to achieve academic progress. The education plan must include at least
472	472	33 the following components:
473	473	34 (1) An academic program designed to meet Indiana's academic
474	474	35 standards and to assist students in meeting those academic
475	475	36 standards.
476	476	37 (2) A plan to improve the academic performance of all students,
477	477	38 including improvement in the performance of students on
478	478	39 standardized tests.
479	479	40 (3) A plan to engage parents in school performance and school
480	480	41 activities, including regular meetings at each school involving
481	481	42 administrators, teachers, parents, and interested members of the
482	482	2022(ss) IN 1014—LS 6045/DI 143 12
483	483	1 community.
484	484	2 (4) A plan to implement performance standards that will attract
485	485	3 students and families to the school corporation.
486	486	4 (5) A plan specifying how the school corporation will work
487	487	5 directly with the city of Gary:
488	488	6 (A) to make the schools a successful component of life within
489	489	7 the city; and
490	490	8 (B) to develop a sense of pride and progress in the operations
491	491	9 and accomplishments of the school corporation.
492	492	10 The chief financial officer and the chief academic officer shall submit
493	493	11 a report to the advisory board each quarter. The chief financial officer
494	494	12 and chief academic officer shall meet at least quarterly with the
495	495	13 executive committee of the bargaining unit to inform the executive
496	496	14 committee of the academic progress of the school corporation.
497	497	15 SECTION 5. IC 6-1.1-20.3-7.5, AS AMENDED BY
498	498	16 P.L.213-2018(ss), SECTION 8, IS AMENDED TO READ AS
499	499	17 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 7.5. (a) This section
500	500	18 does not apply to a school corporation designated before July 1, 2013,
501	501	19 as a distressed political subdivision.
502	502	20 (b) If a political subdivision is designated as a distressed political
503	503	subdivision under this chapter, the board shall appoint an emergency21
504	504	manager for the distressed political subdivision. An emergency22
505	505	manager serves at the pleasure of the board. 23 For purposes of IC 34-13,
506	506	24 an emergency manager appointed under this section is acting on behalf
507	507	of the distressed political subdivision and not the state.25
508	508	(c) The chairperson of the board shall oversee the activities of an26
509	509	emergency manager.27
510	510	(d) Except as provided in this chapter, the distressed political28
511	511	subdivision shall pay the emergency manager's compensation and29
512	512	reimburse the emergency manager for actual and necessary expenses.30
513	513	31 (e) A member of a fiscal management board, An emergency
514	514	32 manager, a chief financial officer, or a chief academic officer is
515	515	33 immune from civil liability for an act or omission within the scope and
516	516	34 arising out of the performance of duties prescribed by the board under
517	517	35 this chapter. This subsection does not apply to an act or omission that
518	518	36 constitutes gross negligence or willful misconduct.
519	519	37 (f) The attorney general shall represent a member of the distressed
520	520	38 unit appeal board, a member of a fiscal management board, an
521	521	39 emergency manager, a chief financial officer, or a chief academic
522	522	40 officer in a legal action arising out of the exercise of powers granted
523	523	41 under this chapter, if the member of the distressed unit appeal board,
524	524	42 the member of a fiscal management board, emergency manager, chief
525	525	2022(ss) IN 1014—LS 6045/DI 143 13
526	526	1 financial officer, or chief academic officer makes a written request to
527	527	2 the attorney general requesting representation. The attorney general
528	528	3 may not represent a member of the distressed unit appeal board, a
529	529	4 member of a fiscal management board, an emergency manager, a chief
530	530	5 financial officer, or a chief academic officer under this subsection if the
531	531	6 legal action is initiated or the claim is asserted by the member of the
532	532	7 distressed unit appeal board, the member of the fiscal management
533	533	8 board, emergency manager, or the distressed political subdivision. If
534	534	9 the attorney general represents a member of the distressed unit appeal
535	535	10 board, a member of a fiscal management board, an emergency
536	536	11 manager, a chief financial officer, or a chief academic officer under this
537	537	12 subsection, the member of the distressed unit appeal board, the member
538	538	13 of a fiscal management board, emergency manager, chief financial
539	539	14 officer, or chief academic officer is entitled to recover attorney's fees
540	540	15 from the losing party to the extent the member of the distressed unit
541	541	16 appeal board, the member of the fiscal management board, emergency
542	542	17 manager, chief financial officer, or chief academic officer prevails. Any
543	543	18 attorney's fees recovered shall be deposited in the state general fund.
544	544	19 SECTION 6. IC 20-23-8-5, AS AMENDED BY P.L.233-2015,
545	545	20 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
546	546	21 JULY 1, 2023]: Sec. 5. As used in this chapter, "school corporation"
547	547	22 means a local public school corporation established under the laws of
548	548	23 Indiana. The term does not include a school corporation covered by
549	549	24 IC 20-23-12, IC 20-23-12.1, IC 20-23-17, or IC 20-23-17.2.
550	550	25 SECTION 7. IC 20-23-12-1 IS REPEALED [EFFECTIVE JULY 1,
551	551	26 2023]. Sec. 1. IC 20-23-8 does not apply to:
552	552	27 (1) a school corporation; or
553	553	28 (2) the governing body of a school corporation;
554	554	29 covered by this chapter.
555	555	30 SECTION 8. IC 20-23-12-3, AS AMENDED BY P.L.213-2018(ss),
556	556	31 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
557	557	32 JULY 1, 2023]: Sec. 3. (a) The emergency manager appointed by the
558	558	33 distressed unit appeal board under IC 6-1.1-20.3 shall act as the
559	559	34 governing body of the school corporation and has the powers set forth
560	560	35 in IC 6-1.1-20.3-8.5, including the powers and duties of the governing
561	561	36 body of the school corporation until January 1, 2024. The school
562	562	37 corporation shall also have an advisory board that consists of seven (7)
563	563	38 members elected as follows:
564	564	39 (1) On a nonpartisan basis.
565	565	40 (2) In a general election in the county.
566	566	41 The advisory board is created to provide nonbinding recommendations
567	567	42 to the emergency manager.
568	568	2022(ss) IN 1014—LS 6045/DI 143 14
569	569	1 (b) Six (6) of the members shall be elected from the school districts
570	570	2 drawn under section 4 of this chapter. Each member:
571	571	3 (1) is elected from the school district in which the member
572	572	4 resides; and
573	573	5 (2) upon election and in conducting the business of the advisory
574	574	6 board, represents the interests of the entire school corporation.
575	575	7 (c) One (1) of the members elected:
576	576	8 (1) is the at-large member of the advisory board;
577	577	9 (2) may reside in any of the districts drawn under section 4 of this
578	578	10 chapter; and
579	579	11 (3) upon election and in conducting the business of the advisory
580	580	12 board, represents the interests of the entire school corporation.
581	581	13 (d) A per diem may not be paid to a member.
582	582	14 (e) The advisory board may hold a public meeting subject to the
583	583	15 limits on the number of meetings set forth in IC 6-1.1-20.3-6.8(d). The
584	584	16 advisory board is subject to IC 5-14-1.5 (the open door law) for these
585	585	17 meetings. The advisory board may hold additional meetings that are
586	586	18 authorized as executive sessions under IC 5-14-1.5 (the open door law)
587	587	19 as provided in IC 5-14-1.5-6.1. The advisory board is subject to the
588	588	20 public notice requirements of IC 5-14-1.5 (the open door law) for these
589	589	21 additional meetings. The records of the advisory board are subject to
590	590	22 IC 5-14-3 (access to public records).
591	591	23 SECTION 9. IC 20-23-12-4 IS REPEALED [EFFECTIVE JULY 1,
592	592	24 2023]. Sec. 4. The districts are drawn on the same lines as the common
593	593	25 council districts referred to in IC 36-4-6-3.
594	594	26 SECTION 10. IC 20-23-12-5 IS REPEALED [EFFECTIVE JULY
595	595	27 1, 2023]. Sec. 5. (a) The six (6) members who are elected for a position
596	596	28 on the advisory board described under section 3(b) of this chapter are
597	597	29 determined as follows:
598	598	30 (1) Each prospective candidate must file a nomination petition
599	599	31 with the board of elections and registration not earlier than one
600	600	32 hundred four (104) days and not later than noon seventy-four (74)
601	601	33 days before the election at which the members are to be elected
602	602	34 that includes the following information:
603	603	35 (A) The name of the prospective candidate.
604	604	36 (B) The district in which the prospective candidate resides.
605	605	37 (C) The signatures of at least one hundred (100) registered
606	606	38 voters residing in the school corporation.
607	607	39 (D) The fact that the prospective candidate is running for a
608	608	40 district position.
609	609	41 (E) A certification that the prospective candidate meets the
610	610	42 qualifications for candidacy imposed by this chapter.
611	611	2022(ss) IN 1014—LS 6045/DI 143 15
612	612	1 (2) Only eligible voters residing in the district may vote for a
613	613	2 candidate.
614	614	3 (3) The candidate within each district who receives the greatest
615	615	4 number of votes in the district is elected.
616	616	5 (b) The at-large member elected under section 3(c) of this chapter
617	617	6 is determined as follows:
618	618	7 (1) Each prospective candidate must file a nomination petition
619	619	8 with the clerk of the circuit court at least seventy-four (74) days
620	620	9 before the election at which the at-large member is to be elected.
621	621	10 The petition must include the following information:
622	622	11 (A) The name of the prospective candidate.
623	623	12 (B) The signatures of at least one hundred (100) registered
624	624	13 voters residing within the school corporation.
625	625	14 (C) The fact that the prospective candidate is running for the
626	626	15 at-large position on the advisory board.
627	627	16 (D) A certification that the prospective candidate meets the
628	628	17 qualifications for candidacy imposed by this chapter.
629	629	18 (2) Only eligible voters residing in the school corporation may
630	630	19 vote for a candidate.
631	631	20 (3) The candidate who:
632	632	21 (A) runs for the at-large position on the advisory board; and
633	633	22 (B) receives the greatest number of votes in the school
634	634	23 corporation;
635	635	24 is elected to the at-large position.
636	636	25 SECTION 11. IC 20-23-12-6 IS REPEALED [EFFECTIVE JULY
637	637	26 1, 2023]. Sec. 6. (a) A candidate who runs for a position on the
638	638	27 advisory board described under section 3(b) of this chapter must reside
639	639	28 in the school corporation district for which the candidate filed.
640	640	29 (b) A candidate who runs for the at-large position on the advisory
641	641	30 board described in section 3(c) of this chapter must reside in the school
642	642	31 corporation.
643	643	32 SECTION 12. IC 20-23-12-7 IS REPEALED [EFFECTIVE JULY
644	644	33 1, 2023]. Sec. 7. The state board, with assistance from the county
645	645	34 election board, shall establish:
646	646	35 (1) balloting procedures under IC 3 for the election; and
647	647	36 (2) all other procedures required to implement this chapter.
648	648	37 SECTION 13. IC 20-23-12-8 IS REPEALED [EFFECTIVE JULY
649	649	38 1, 2023]. Sec. 8. (a) The term of each person elected to serve on the
650	650	39 advisory board is four (4) years.
651	651	40 (b) The term of each person elected to serve on the advisory board
652	652	41 begins on the date set in the school corporation's organization plan. The
653	653	42 date set in the organization plan for an elected member of the advisory
654	654	2022(ss) IN 1014—LS 6045/DI 143 16
655	655	1 board to take office may not be more than fourteen (14) months after
656	656	2 the date of the member's election. If the school corporation's
657	657	3 organization plan does not set a date for an elected member of the
658	658	4 advisory board to take office, the member takes office January 1 that
659	659	5 immediately follows the person's election.
660	660	6 SECTION 14. IC 20-23-12-9 IS REPEALED [EFFECTIVE JULY
661	661	7 1, 2023]. Sec. 9. The members are elected as follows:
662	662	8 (1) Three (3) of the members elected under section 3(b) of this
663	663	9 chapter are elected at the general election to be held in 2020 and
664	664	10 every four (4) years thereafter.
665	665	11 (2) Three (3) of the members elected under section 3(b) of this
666	666	12 chapter are elected at the general election to be held in 2022 and
667	667	13 every four (4) years thereafter.
668	668	14 (3) The at-large member elected under section 3(c) of this chapter
669	669	15 is elected at the general election to be held in 2024 and every four
670	670	16 (4) years thereafter.
671	671	17 SECTION 15. IC 20-23-12-10 IS REPEALED [EFFECTIVE JULY
672	672	18 1, 2023]. Sec. 10. (a) A vacancy on the advisory board is created when:
673	673	19 (1) a member:
674	674	20 (A) dies;
675	675	21 (B) resigns from the advisory board;
676	676	22 (C) ceases to be a resident of the school corporation;
677	677	23 (D) fails to attend, except for reason of chronic illness, six (6)
678	678	24 regularly scheduled meetings of the advisory board in any
679	679	25 twelve (12) month period; or
680	680	26 (E) ceases to be a resident of the school district in which the
681	681	27 member was elected; or
682	682	28 (2) a vacancy is created under any other law.
683	683	29 (b) The advisory board shall temporarily fill a vacancy on the
684	684	30 advisory board as soon as practicable after the vacancy occurs.
685	685	31 SECTION 16. IC 20-23-12-11 IS REPEALED [EFFECTIVE JULY
686	686	32 1, 2023]. Sec. 11. Before August 1 of each year, the school corporation
687	687	33 shall file with the secretary of education a list of the:
688	688	34 (1) names and addresses of members of the school corporation's
689	689	35 advisory board;
690	690	36 (2) names and addresses of the school corporation's officers; and
691	691	37 (3) expiration dates of the terms of the school corporation's
692	692	38 members and officers.
693	693	39 The school corporation shall file any change in the list not later than
694	694	40 thirty (30) days after the change occurs.
695	695	41 SECTION 17. IC 20-23-12.1 IS ADDED TO THE INDIANA
696	696	42 CODE AS A NEW CHAPTER TO READ AS FOLLOWS
697	697	2022(ss) IN 1014—LS 6045/DI 143 17
698	698	1 [EFFECTIVE MAY 1, 2023]:
699	699	2 Chapter 12.1. Appointment of Board of Trustees Members for
700	700	3 Gary Community School Corporation
701	701	4 Sec. 1. IC 20-23-8 does not apply to:
702	702	5 (1) a school corporation; or
703	703	6 (2) the governing body of a school corporation;
704	704	7 covered by this chapter.
705	705	8 Sec. 2. As used in this chapter, "school corporation" means the
706	706	9 Gary Community School Corporation.
707	707	10 Sec. 3. (a) After June 30, 2023, the governing body of the Gary
708	708	11 Community School Corporation consists of the following seven (7)
709	709	12 board of trustees members:
710	710	13 (1) Three (3) members appointed by the executive of the city
711	711	14 of Gary. Except as provided in subsection (b), each member's
712	712	15 term is four (4) years.
713	713	16 (2) Three (3) members appointed by the Gary common
714	714	17 council. Except as provided in subsection (b), each member's
715	715	18 term is four (4) years.
716	716	19 (3) One (1) member appointed by the Gary library board.
717	717	20 Except as provided in subsection (b), the member's term is
718	718	21 four (4) years.
719	719	22 (b) One (1) of the members appointed:
720	720	23 (1) by the executive of the city of Gary; and
721	721	24 (2) by the Gary common council;
722	722	25 under subsection (a) whose term commences July 1, 2023, shall
723	723	26 serve an initial term of two (2) years. In addition, the member
724	724	27 appointed by the Gary library board, whose term commences July
725	725	28 1, 2023, shall serve an initial term of two (2) years. This subsection
726	726	29 expires July 1, 2025.
727	727	30 (c) On or before August 1, 2023, each member appointed under
728	728	31 subsection (a) shall participate in training pertaining to the duties
729	729	32 of the governing body provided by the Indiana School Boards
730	730	33 Association. This subsection expires January 1, 2024.
731	731	34 (d) A member's term expires June 30 in the applicable year in
732	732	35 which the member's term expires. A member appointed under
733	733	36 subsection (a) may be reappointed to an unlimited number of
734	734	37 terms.
735	735	38 (e) Members appointed under subsection (a) must be residents
736	736	39 of the city of Gary.
737	737	40 (f) Vacancies in the appointments to the governing body shall be
738	738	41 filled by the member's appointing authority in accordance with the
739	739	42 term requirements established in subsection (a). A member
740	740	2022(ss) IN 1014—LS 6045/DI 143 18
741	741	1 appointed under this subsection serves for the remainder of the
742	742	2 unexpired term.
743	743	3 (g) The members appointed to the governing body shall elect a
744	744	4 president, vice president, and secretary from the members of the
745	745	5 governing body.
746	746	6 Sec. 4. The governing body appointed under section 3 of this
747	747	7 chapter shall serve in an advisory capacity to the distressed unit
748	748	8 appeal board and the emergency manager appointed by the
749	749	9 distressed unit appeal board under IC 6-1.1-20.3 until January 1,
750	750	10 2024. The distressed unit appeal board and the emergency
751	751	11 manager appointed by the distressed unit appeal board under
752	752	12 IC 6-1.1-20.3 shall consult and inform the governing body of all
753	753	13 decisions made by the distressed unit appeal board or the
754	754	14 emergency manager relating to the administration or management
755	755	15 of the school corporation.
756	756	16 Sec. 5. On January 1, 2024, the governing body appointed under
757	757	17 section 3 of this chapter assumes all the powers, rights, duties, and
758	758	18 obligations of a community school corporation as set forth in
759	759	19 IC 20-23-4-26.
760	760	20 Sec. 6. (a) On or before October 1, 2023, the governing body
761	761	21 shall do the following:
762	762	22 (1) Appoint, in consultation with the Indiana School Boards
763	763	23 Association and with the input of the citizens of Gary, an
764	764	24 individual to act as superintendent of the school corporation.
765	765	25 (2) Appoint, in consultation with the Indiana School Boards
766	766	26 Association and with the input of the citizens of Gary, a chief
767	767	27 financial officer.
768	768	28 (b) Before January 1, 2024, the superintendent appointed under
769	769	29 subsection (a) shall work under the supervision of the emergency
770	770	30 manager as an advisor on all financial, instructional, and
771	771	31 management decisions relating to the school corporation. After
772	772	32 December 31, 2023, the superintendent will assume the
773	773	33 responsibilities of the management and supervision of the school
774	774	34 corporation under the direction of the governing body.
775	775	35 (c) Before January 1, 2024, the chief financial officer appointed
776	776	36 under subsection (a) shall work under the supervision of the
777	777	37 emergency manager as an advisor in all financial decisions relating
778	778	38 to the school corporation. After December 31, 2023, the chief
779	779	39 financial officer shall assume all duties of the fiscal management of
780	780	40 the school corporation under the direction of the superintendent
781	781	41 and the governing body.
782	782	42 SECTION 18. IC 20-29-2-6, AS AMENDED BY P.L.272-2019,
783	783	2022(ss) IN 1014—LS 6045/DI 143 19
784	784	1 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
785	785	2 MAY 1, 2023]: Sec. 6. "Deficit financing" for a budget year:
786	786	3 (1) means, except as provided in subdivision (2), actual
787	787	4 expenditures exceeding the employer's current year actual
788	788	5 education fund revenue and, for a school employer for which the
789	789	6 voters have passed an operating referendum tax levy under
790	790	7 IC 20-46-1 or a school safety referendum tax levy under
791	791	8 IC 20-46-9, the amount of revenue certified by the department of
792	792	9 local government finance; or
793	793	10 (2) means, in the case of any distressed school corporation, the
794	794	11 Gary Community School Corporation, or the Muncie Community
795	795	12 school corporation or any other distressed school corporation
796	796	13 actual expenditures plus additional payments against any
797	797	14 outstanding debt obligations exceeding the employer's current
798	798	15 year actual education fund revenue, and, for a school employer for
799	799	16 which the voters have passed an operating referendum tax levy
800	800	17 under IC 20-46-1 or a school safety referendum tax levy under
801	801	18 IC 20-46-9, the amount of revenue certified by the department of
802	802	19 local government finance.
803	803	20 Except as provided in IC 20-29-6-3(c), revenue does not include money
804	804	21 estimated to be or actually transferred from the school corporation's
805	805	22 operations fund to its education fund.
806	806	23 SECTION 19. [EFFECTIVE MAY 1, 2023] (a) As used in this
807	807	24 SECTION, "advisory board" refers to the Gary public schools
808	808	25 advisory board established under IC 20-23-12-3, before its
809	809	26 amendment by this act.
810	810	27 (b) As used in this SECTION, "governing body" refers to the
811	811	28 governing body appointed under IC 20-23-12.1-3(a), as added by
812	812	29 this act.
813	813	30 (c) The terms of the members of the advisory board expire June
814	814	31 30, 2023.
815	815	32 (d) The term of the member appointed to the fiscal management
816	816	33 board under IC 6-1.1-20.3-6.8(g)(1), before its amendment by this
817	817	34 act, expires June 30, 2023.
818	818	35 (e) Before July 1, 2023, the appointing authorities described in
819	819	36 IC 20-23-12.1-3(a), as added by this act, shall appoint the initial
820	820	37 members to the governing body in the manner prescribed by
821	821	38 IC 20-23-12.1-3, as added by this act.
822	822	39 (f) The initial terms for members of the governing body
823	823	40 appointed under subsection (e) begin July 1, 2023.
824	824	41 (g) This SECTION expires July 1, 2026.
825	825	2022(ss) IN 1014—LS 6045/DI 143