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: Mar 9, 2022
BILL NUMBER: HB 1251 BILL AMENDED: Mar 9, 2022
SUBJECT: Various Education Matters.
FIRST AUTHOR: Rep. Behning BILL STATUS: Enrolled
FIRST SPONSOR: Sen. Raatz
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
XFEDERAL
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.
Online Portal: This bill requires the DOE to establish an online adjunct teacher portal.
Adjunct Teacher Permits: This bill provides that the governing body of a school corporation may issue an
adjunct teacher permit to an individual who meets certain requirements. It establishes requirements for
adjunct teacher employment agreements. It provides that the 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
provides that the school employer shall discuss the use of adjunct teachers with the exclusive representative
of certificated employees. It also requires the governing body of a school corporation to announce any vacant
adjunct teacher positions at meetings of the governing body.
HB 1251 1 Primary Use of a School Building: This bill amends the definition of "primary use of the building" for certain
applicable high schools for purposes of occupancy classification requirements.
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 provides that the SBOE may adopt emergency rules relating to school
accreditation.
Student Enrichment Grant Program: This bill establishes the Indiana Student Enrichment Grant Program.
It provides that an enrichment student is eligible to establish an Indiana Enrichment Scholarship Account.
It provides that an enrichment student may receive $1,000 to be used for certain qualified expenses. It
provides that the DOE shall administer the program. It also provides that the program expires July 1, 2025.
Effective Date: Upon passage; July 1, 2022.
Explanation of State Expenditures: Online Portal: This bill requires the 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 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.
Student Enrichment Grant Program: This bill creates the Indiana Student Enrichment Grant Program which
allows parents of an enrichment student, beginning September 1, 2022, to create an Indiana Enrichment
Scholarship Account. The DOE may only use federal funding to provide the enrichment grants, and no
further grants may be awarded after the DOE's Elementary and Secondary School Emergency Relief Funds
are exhausted. The actual expenditures resulting from this bill will depend upon the number of students
determined to be enrichment students and whether accounts are opened.
Each enrichment student may be provided with a one-time grant of $500, or a one-time grant of $750 if the
student's school also provides a grant to the student of $250 (meaning the student will receive a total of
$1,000). However, if there is not enough federal funding available to provide all enrichment students with
their qualifying grant amount, the DOE must determine the number of grants to be awarded based on the
availability of funds. All existing enrichment accounts will be terminated on October 1, 2024.
The DOE must administer the program and is permitted to contract with external entities to maintain and
HB 1251 2 manage accounts. Any cost associated with contracting with external entities to maintain and manage the
accounts will depend on actions of the agency.
Also, the SBOE must amend rules as necessary regarding the grant program.
Academic Standards: The DOE must conduct, and submit to the 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.
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.
Additional Information: This bill identifies four criteria for determining which students may qualify as an
enrichment student, but allows the DOE to establish more stringent criteria, meaning the number of students
eligible for a grant under this program is not able to be determined at this time.
The DOE may send a notice to the Attorney General or the prosecuting attorney for a county if the DOE
believes a crime has been committed, or a civil action is necessary, relating to an enrichment student’s
account.
Grant funds may only be used for qualifying expenses, as defined in this bill. All funds used for qualifying
expenses are tax exempt.
An enrichment student’s account will be terminated on either the date the student no longer resides in Indiana
or on October 1, 2024, whichever is earlier.
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 allows schools to enter into an employment agreement with an adjunct teacher, as
prescribed in the bill. Also, a school’s governing body must announce any vacant adjunct teacher positions
HB 1251 3 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 salaries of those teachers.
Student Enrichment Grant Program: School corporations may opt to provide enrichment students with a
$250 matching grant (which is in addition to the grant funding provided by the state). Schools may only use
federal funding for any matching grants they provide. Any expenditure related to matching grants will depend
on local action.
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 is not subject to a local compensation plan established by a
school corporation. Schools must hold a discussion with the exclusive representative of certificated
employees regarding the use of adjunct teachers. 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:
State Agencies Affected: Department of Education; State Board of Education; Attorney General; State
educational institutions.
Local Agencies Affected: School corporations; Charter schools; County Prosecutor's Offices.
Information Sources: Department of Education, https://doeonline.doe.in.gov/jobbank/search.aspx.
Fiscal Analyst: Jason Barrett, 317-232-9809.
HB 1251 4