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: Feb 28, 2022 BILL NUMBER: HB 1251 BILL AMENDED: Feb 24, 2022 SUBJECT: Various Education Matters. FIRST AUTHOR: Rep. Behning BILL STATUS: 2 nd Reading - 2 nd 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 regarding academic standards. Adjunct Teacher Permits: This bill requires the DOE to establish an online adjunct teacher portal. It 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 a contract for employment with the individual as a part-time teacher of the school corporation. It establishes requirements for adjunct teacher employment contracts. It provides that the employment contracts 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 provides that a school corporation may not pay an adjunct teacher an hourly rate that is more than the hourly rate that a school employer pays a first year teacher without holding a discussion with the exclusive representative. It requires a school corporation to: HB 1251 1 (1) notify the parents of students enrolled in the school corporation of a vacant adjunct teacher position; and (2) post a vacant adjunct teacher position on the DOE online adjunct teacher portal. It also requires the governing body of a school corporation to announce any vacant adjunct teacher positions at meetings of the governing body. 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: Online Portal: This bill requires the Department of Education (DOE) to create an online portal, or incorporate functionality into the existing teacher referral system, for school corporations to post vacant adjunct teacher positions and for individuals to submit an application, make inquiries, and view information regarding the adjunct teachers employed by a school corporation. The DOE has on their website an existing School Personnel Job Bank which serves as a teacher referral system. 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 for any modifications to the existing online system needed to satisfy this requirement. Application for Assessment Flexibility: This bill requires the 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. HB 1251 2 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. 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 a contract for employment with an adjunct teacher, as prescribed in the bill. Also, schools must notify the parents of their students about vacant adjunct teacher positions and a school’s governing body must announce any vacant adjunct teacher positions at their meetings. Any impact to school expenditures will depend on local action regarding the number of adjunct teachers hired by a school corporation and the contracted 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 a contract is not subject to a local compensation plan established by a school corporation. An adjunct teacher may not be paid an hourly rate more than the rate the school pays to a first year teacher without holding a prior discussion with the exclusive representative of certificated employees. Any school hiring an adjunct teachers must assign that individual with a teacher mentor for support in pedagogy. Also, within 90 days of being hired, an adjunct teacher must complete required trainings on bullying prevention, child abuse and neglect, and youth suicide awareness and prevention. Explanation of Local Revenues: HB 1251 3 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 4