LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 7066 NOTE PREPARED: Jan 31, 2022 BILL NUMBER: HB 1251 BILL AMENDED: Jan 27, 2022 SUBJECT: Various Education Matters. FIRST AUTHOR: Rep. Behning BILL STATUS: As Passed House FIRST SPONSOR: Sen. Raatz FUNDS AFFECTED:XGENERAL IMPACT: State & Local DEDICATED FEDERAL Summary of Legislation: Application for Assessment Flexibility: This bill requires the Department of Education (DOE) to apply to the United States Department of Education for assessment flexibility. Parent-Teacher Compact Report: This bill requires the DOE to: (1) prepare a report that includes information and recommendations regarding establishing and implementing a Parent-Teacher Compact Program; and (2) submit the report to the Legislative Council not later than November 1, 2022. Academic Standards: This bill provides that the State Board of Education (SBOE) shall, in consultation with postsecondary educational institutions and various businesses and industries, identify what skills or traits students need to be successful upon completion of high school. It also requires the DOE to conduct a research study of academic standards. Adjunct Teacher Permits: This bill provides that: (1) the governing body of a school corporation may issue an adjunct teacher permit to an individual who meets certain requirements; and (2) if a governing body of a school corporation issues an adjunct teacher permit to an individual, the school corporation may enter into an employment agreement with the individual as a part-time or full-time teacher of the school corporation. It establishes requirements for adjunct teacher employment agreements. It provides that these employment agreements are not subject to certain requirements regarding teacher salaries and school corporation local compensation plans. It provides that: (1) an adjunct teacher is not a school employee for purposes of collective bargaining; and (2) an employment agreement with an adjunct teacher is not subject to a collective bargaining agreement. It also provides that it is not an unfair labor practice for a school corporation to enter into an employment agreement with an adjunct teacher. HB 1251 1 Online Portal: This bill requires the DOE to establish an online adjunct teacher portal. Primary Use of a School Building: This bill amends the definition of "primary use of the building" for certain applicable high schools to mean, in part, an occupancy classification most closely related to the intended use of the building upon construction. School Transportation: This bill amends the definition of "appropriate vehicle". It provides that a special purpose bus or an appropriate vehicle may be used to transport students under certain circumstances. It provides that the driver of a special purpose bus or an appropriate vehicle must pass an expanded criminal history check and an expanded child protection index check. It also makes changes to visual acuity requirements for a bus driver. School Accreditation: This bill also provides that the SBOE may adopt emergency rules relating to school accreditation. Effective Date: Upon passage; July 1, 2022. Explanation of State Expenditures: Application for Assessment Flexibility: This bill requires the Department of Education (DOE) to apply for assessment flexibility with the US Department of Education. The DOE will need to acquire and submit all required information during the application process. If the application is granted, the DOE will need to work with school corporations and charter schools to properly implement all resulting changes. Academic Standards: The DOE must conduct, and submit to the State Board of Education (SBOE) and the General Assembly by December 1, 2022, a research study to define essential postsecondary skills and to inform the reduction and realignment of Indiana’s high school standards, as prescribed in the bill. The DOE must, by June 1, 2023, provide the SBOE with recommendations for the reduction in Indiana's academic standards for grades 9-12 (and must, by June 1, 2024, do the same for grades K-8). The SBOE must adopt new standards based on these recommendations. Additionally, by March 1, 2025, the ILEARN assessment must be realigned to reflect the updated standards. Parent-Teacher Compact Report: This bill requires the DOE to prepare a report, as prescribed in the bill, and submit the final report to the Legislative Council by November 1, 2022. Online Portal: This bill requires the DOE to establish an online portal for school corporations to post vacant adjunct teacher positions, allow individuals to submit their application or make inquiries to the school via the portal, and for the DOE to post information regarding adjunct teachers hired by a school as prescribed in the bill. The DOE has an existing School Personnel Job Bank. This job bank lists open positions within a school and directs applicants to the website where they may apply for such positions. The DOE may experience an increase in costs or workload to modify the existing system. School Transportation/School Accreditation: The SBOE must amend rules regarding the State School Bus Committee to comply with the requirements of this bill. Additionally, this bill permits the SBOE to adopt emergency rules regarding school accreditation. This bill’s requirements on the SBOE are within the agency’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. HB 1251 2 Explanation of State Revenues: Explanation of Local Expenditures: Application for Assessment Flexibility: School corporations and charter schools (schools) may need to provide information, data, or input to the DOE during the application process. If Indiana is granted assessment flexibility, schools will need to implement the changes outlined in the state’s approved application. Academic Standards: Any impact to schools resulting from the change in academic standards will depend on the final standards created and approved by the state. Adjunct Teacher Permits: This bill allows schools to issue adjunct teacher permits, based on the requirements outlined in this bill, and it allows schools to enter into an employment agreement with an adjunct teacher, as prescribed in the bill. Any impact to school expenditures will depend on local action regarding the number of adjunct teachers hired by a school and the agreed upon salaries of those teachers. Primary Use of a School Building: This bill modifies the criteria to determine which rules of the Fire Prevention and Building Safety Commission an applicable high school must follow. Any impact to a school will depend on local action. School Transportation: This bill increases the allowed capacity of an appropriate vehicle for school transportation, and it removes the capacity and weight restrictions from a special purpose bus used to transport students. It also expands the allowable uses of both an appropriate vehicle and a special purpose bus for transporting students. These provisions will allow more options for schools to offer transportation services for students and may lead to a reduction in expenditures by allowing schools to own fewer vehicles or require fewer drivers paid by the school. Schools must require that an operator of an appropriate vehicle or a special purpose bus pass an expanded criminal history check and expanded child protection index check. Any resulting change in expenditures for a school will depend on local action. Additional Information: Adjunct teachers are not considered school employees for the purposes of collective bargaining. The salary of an adjunct teacher under an employment agreement is not subject to a local compensation plan established by a school corporation. Explanation of Local Revenues: State Agencies Affected: Department of Education; State Board of Education; State educational institutions. Local Agencies Affected: School corporations; Charter schools. Information Sources: Department of Education, https://doeonline.doe.in.gov/jobbank/search.aspx. Fiscal Analyst: Jason Barrett, 317-232-9809. HB 1251 3