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 7132 NOTE PREPARED: Jan 7, 2022
BILL NUMBER: HB 1389 BILL AMENDED:
SUBJECT: Various Education Matters.
FIRST AUTHOR: Rep. Judy BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: General Provisions: This bill defines a "qualified school". It provides that a state
agency, state educational institution, school corporation, or qualified school, or an employee of the state
agency, state educational institution, school corporation, or qualified school acting in an official capacity,
may not include or promote certain concepts as part of a course of instruction or in a curriculum or direct or
otherwise compel a school employee or student to adhere to certain tenets relating to the individual's sex,
race, ethnicity, religion, color, national origin, or political affiliation. It defines an "operator". It also
establishes online privacy protection requirements to protect the disclosure of certain information of a student
of a school corporation or qualified school by an operator.
Student Analysis, Evaluation, or Survey: This bill provides that a student shall not be required to participate
in a personal analysis, an evaluation, or a survey that is established or administered by: (1) a school
corporation; (2) a school; (3) the Department of Education (DOE); or (4) a third party vendor of a school
corporation, a school, or the DOE; without the prior consent of the student if the student is an adult or an
emancipated minor or the prior written consent of the student's parent if the student is an unemancipated
minor. (Current law provides that a student shall not be required to participate in a personal analysis, an
evaluation, or a survey that is not directly related to academic instruction and that reveals or attempts to
affect the student's attitudes, habits, traits, opinions, beliefs, or feelings concerning certain matters without
the prior consent of the student if the student is an adult or an emancipated minor or the prior written consent
of the student's parent if the student is an unemancipated minor.) It provides that a student shall not be
required to participate in a personal analysis, evaluation, or survey that reveals or attempts to affect the
student's attitudes, habits, traits, opinions, beliefs, or feelings without parental consent.
School Psychology Services: This bill provides that before a school corporation or qualified school may
HB 1389 1 provide or administer school psychology services to a student, the school must provide the parent of the
student or the student, if the student is an adult or an emancipated minor, with a written request for consent
to provide or administer school psychology services.
Protected Right Violations: This bill establishes procedures for a petitioner to file a complaint form alleging
that certain violations occurred within a school corporation or applicable school. It provides that a petitioner
may appeal a school corporation's or applicable school's findings to the DOE. It requires the DOE to appoint
an administrative law judge to adjudicate appeals. It requires the DOE to issue a final order. It requires the
Attorney General or the Attorney General's designee to review a school corporation's or applicable school's
findings or the DOE’s final order. It provides that the Attorney General may assess civil penalties if the
Attorney General determines a violation occurred. It also provides that a school corporation or applicable
school may not take retaliatory action against a petitioner or an individual related to or associated with the
petitioner.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Tuition Support: This bill may result in tuition support being withheld
from school corporations or qualified schools if a school is found to have violated a protected right. Any
amount withheld would result in a decrease in General Fund expenditures, with the amount being determined
by an order from an administrative law judge.
Department of Education (DOE): In the event that a petitioner files a complaint with a school corporation
or qualified school, and chooses to then file an appeal of the school's initial determination, the DOE must
accept the appeal and appoint an administrative law judge to issue a final order. If the administrative law
judge determines that the school committed a protected right violation, the final order may: withhold state
tuition support from the school until the protected right violation is remedied, recommend that the State
Board of Education (SBOE) revoke the school's performance based accreditation, suspend or revoke a
teacher's license, or recommend that the Attorney General assess a civil penalty.
This bill also requires the DOE to, as prescribed in this bill:
•Develop and post on their website a complaint form for individuals to file a complaint against a
school corporation or qualified school;
•Develop and post on their website a model plan for schools to post their curricular information
online as required by this bill; and
•Obtain the prior written consent from a student's parent before providing a student with an analysis,
evaluation, or survey.
These requirements are within the DOE’s routine administrative functions and should be able to be
implemented with no additional appropriations, assuming near customary agency staffing and resource levels.
Attorney General: The Attorney General must review all findings of school corporations, qualified schools,
and the DOE regarding protected right complaints. If the Attorney General finds that a violation of a
protected right occurred, the Attorney General may assess a civil penalty against the school. These
requirements are within the Attorney General’s routine administrative functions and should be able to be
implemented with no additional appropriations, assuming near customary agency staffing and resource levels.
State Board of Education (SBOE): The SBOE must adopt rules to ensure that school corporations and
qualified schools adhere to the requirements of this bill.
HB 1389 2 Additional Information: This bill defines a qualified school as:
•A school maintained by a school corporation;
•A charter school;
•A laboratory school;
•The Indiana School for the Blind and Visually Impaired; and
•The Indiana School for the Deaf.
Explanation of State Revenues: Protected Right Violations: Civil penalties assessed by the Attorney
General, as prescribed in this bill, must be deposited into the Indiana Secured School Fund.
There could also be an increase in civil actions resulting in an increase in court fee revenue to the state
General Fund. A civil costs fee of $100 could be assessed from the defendant, 70% of which would be
deposited in the state General Fund if the case is filed in a court of record or 55% if the case is filed in a city
or town court.
In addition, some or all of the judicial salaries fee ($20), public defense administration fee ($5), court
administration fee ($5), and the judicial insurance adjustment fee ($1) are deposited into the state General
Fund. Proceeds from the automated record keeping fee ($20) are deposited into the State User Fee Fund.
Additional fees may be collected at the discretion of the judge and depending upon the particular type of
case.
Explanation of Local Expenditures: Summary: Complying with the bill’s requirements will constitute a
workload increase for school corporations and qualified schools, especially for schools needing to respond
to protected right violation complaints. The workload impacts could vary by school corporation, and the
resources required to satisfy the requirements of this bill will depend on administrative actions.
Protected Right Violations: School corporations and qualified schools must investigate each complaint form
filed against the school to determine whether or not a violation occurred. In doing so, the school must
designate at least one employee to respond to such complaints and must post this employee's contact
information on the school's website. Once a school makes a determination regarding a complaint, the school
must notify the petitioner and send a copy of the findings to the Attorney General for review.
If a school is determined to have violated a protected right, the administrative law judge may recommend that
the SBOE revoke the school's performance based accreditation or suspend or revoke a teacher's license. Any
such impact to a school will depend on local action.
School Corporations and Qualified Schools: This bill requires that school corporations and qualified schools
must:
•Starting not later than June 30, 2022, annually post on their website certain information concerning
learning materials and educational activities;
•Notify parents of students that they have the right to inspect, and allow parents to inspect, learning
materials, educational activities, and presenter information during normal office hours; and
•Post on their website certain materials as prescribed in the bill, including all contracts with operators.
School corporations and qualified schools may not include or promote any of the concepts, or perform any
of the acts or tasks, prohibited in this bill. Also, these schools may not do any of the following if the action
includes, incorporates, or is based on practices prohibited in this bill:
•Provide, contract to provide, offer, or sponsor any course;
HB 1389 3 •Use money, property, assets, or resources; or
•Execute a contract or agreement with an internal or external entity or person to provide services,
training, professional development, or any other assistance.
Student Analysis, Evaluation, or Survey: This bill requires school corporations and qualified schools to
obtain the prior written consent from a student’s parent before the school, or any third party of the school,
may provide a student with any analysis, evaluation, or survey. (Current law only requires written consent
from a parent for an analysis, evaluation, or survey meeting specific criteria.)
School Psychology Services: School corporations and charter schools must receive written consent from the
parent of a student before the school may provide psychological services to a student, as prescribed in this
bill. The school’s governing body must provide the parent of a student with a notice of their rights regarding
this requirement.
Explanation of Local Revenues: Protected Right Violations: Any reduction in state tuition support to a
school resulting from violating a protected right, as prescribed in this bill, will depend on the compliance of
schools with the requirements of this bill.
The amount of any civil penalty assessed against a school for violating a protected right will depend on the
number of students who are subject of a violation and how many violations the school has previously
committed. In addition, a court may award the petitioner with court costs, reasonable attorney's fees, and
actual damages resulting from the violations or liquidated damages of up to $5,000.
If additional civil actions occur due to this bill, local governments would receive revenue from the following
sources. The county general fund would receive 27% of the $100 civil costs fee that is assessed in a court
of record. Cities and towns maintaining a law enforcement agency that prosecutes at least 50% of its
ordinance violations in a court of record may receive 3% of court fees. If the case is filed in a city or town
court, 20% of the court fee would be deposited in the county general fund and 25% would be deposited in
the city or town general fund. Additional fees may be collected at the discretion of the judge, depending upon
the particular type of case.
Persons filing a civil case are also required to pay the following fees that are deposited in local funds.
The document storage fee ($5) is deposited into the clerk record perpetuation fund.
The following fees are deposited into the general fund of the county in which the court is located:
Document fees ($1 per page) are charged for preparing transcripts or copies of record or certificate under
seal. A civil garnishee defendant service fee ($10) is collected from the filing party for each defendant
beyond the first three garnishee defendants cited in the lawsuit.
General Provisions: A school corporation or qualified school may not receive or apply to receive money that
requires, as a condition of receipt of the money, the adoption of a course, policy, curriculum, or any other
instructional material that incorporates the concepts or practices prohibited in this bill.
State Agencies Affected: Department of Education; State Board of Education; Attorney General; Office of
Administrative Law Proceedings; Indiana School for the Blind and Visually Impaired; Indiana School for
the Deaf; Laboratory schools.
HB 1389 4 Local Agencies Affected: School corporations; Charter schools; Trial courts; City and town courts.
Information Sources:
Fiscal Analyst: Jason Barrett, 317-232-9809.
HB 1389 5