Introduced Version
SENATE BILL No. 331
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-51.4.
Synopsis: Education scholarship account program. Authorizes the
treasurer of state to deduct up to 10% of funds made available for the
Indiana education scholarship account program to cover costs of
administering the program. Establishes the Indiana education
scholarship account administration fund (fund) to support the
administration of the program. Requires any amounts deducted by the
treasurer of state for administration costs to be deposited in the fund.
Requires the treasurer of state to convene an advisory council for
students with a disability of not more than six members, all appointed
by the treasurer of state. Requires an eligible student with a disability
to choose in the application process whether the eligible student will
receive special education services from: (1) the school corporation
required to provide the special education services to the eligible
student; or (2) a qualified school that provides the necessary special
education or related services to the eligible student. Specifies the
annual grant amount calculation for an eligible student based on the
eligible student's application choice. Makes a technical correction.
Effective: Upon passage.
Buchanan
January 11, 2022, read first time and referred to Committee on Education and Career
Development.
2022 IN 331—LS 7001/DI 120 Introduced
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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SENATE BILL No. 331
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 20-51.4-3-7, AS ADDED BY P.L.165-2021,
2 SECTION 180, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) For each school year, the
4 treasurer of state shall determine, based on the amount of funds
5 available for the program, the number of grants that the treasurer of
6 state will award under the program. The number of applications
7 approved and the number of grants awarded under this article by the
8 treasurer of state for the school year may not exceed the number
9 determined by the treasurer of state under this section.
10 (b) The treasurer of state may deduct an amount of not more
11 than ten percent (10%) from the funds made available for the
12 program to cover costs of managing accounts and administering
13 the program. Any amount deducted under this subsection shall be
14 deposited in the Indiana education scholarship account
15 administration fund established by IC 20-51.4-4-3.5.
16 SECTION 2. IC 20-51.4-3-8 IS ADDED TO THE INDIANA CODE
17 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
2022 IN 331—LS 7001/DI 120 2
1 UPON PASSAGE]: Sec. 8. The treasurer of state shall convene an
2 advisory council for students with disabilities. The council shall be
3 comprised of individuals who are members of organizations whose
4 mission it is to provide education, advocacy, resources, or support
5 to individuals with disabilities and their families. The individuals
6 appointed to the council must demonstrate expertise in the areas
7 of special education or disability services. The council shall provide
8 advice and feedback to the treasurer of state on how to improve the
9 program's administrative materials, technology, and
10 communications to best meet the needs of eligible students with
11 disabilities and their families, including the following:
12 (1) The program handbook and marketing materials.
13 (2) The program web site and other lines of support.
14 (3) The annual survey.
15 The council shall include not more than six (6) members, all of
16 whom are appointed by the treasurer of state. The council shall
17 meet not less than three (3) times a year at the request of the
18 treasurer of state.
19 SECTION 3. IC 20-51.4-4-1, AS AMENDED BY THE
20 TECHNICAL CORRECTIONS BILL OF THE 2022 GENERAL
21 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 UPON PASSAGE]: Sec. 1. (a) After June 30, 2022, a parent of an
23 eligible student or an emancipated eligible student may establish an
24 Indiana education scholarship account for the eligible student by
25 entering into a written agreement with the treasurer of state on a form
26 prepared by the treasurer of state. The treasurer of state shall establish
27 a date by which an application to establish an account for the
28 2022-2023 upcoming school year must be submitted. However, for a
29 school year beginning after July 1, 2022, applications must be
30 submitted for an eligible student not later than April 1 September 1 for
31 the immediately following school year. The account of an eligible
32 student shall be made in the name of the eligible student. The treasurer
33 of state shall make the agreement available on the Internet web site of
34 the treasurer of state. To be eligible, a parent of an eligible student or
35 an emancipated eligible student wishing to participate in the program
36 must agree that:
37 (1) a grant deposited in the eligible student's account under
38 section 2 of this chapter and any interest that may accrue in the
39 account will be used only for the eligible student's qualified
40 expenses;
41 (2) money in the account when the account is terminated reverts
42 to the state general fund;
2022 IN 331—LS 7001/DI 120 3
1 (3) the parent of the eligible student or the emancipated eligible
2 student will use part of the money in the account:
3 (A) for the eligible student's study in the subject of reading,
4 grammar, mathematics, social studies, or science; or
5 (B) for use in accordance with the eligible student's:
6 (i) individualized education program developed under
7 IC 20-35;
8 (ii) service plan developed under 511 IAC 7-34;
9 (iii) choice special education plan developed under 511
10 IAC 7-49; or
11 (iv) Indiana education scholarship account education
12 service plan; or
13 (iv) (v) plan developed under Section 504 of the federal
14 Rehabilitation Act of 1973, 29 U.S.C. 794;
15 (4) the eligible student will not be enrolled in a school that
16 receives tuition support under IC 20-43; and
17 (5) the eligible student will take the statewide assessment, as
18 applicable based on the eligible student's grade level, as provided
19 under IC 20-32-5.1, or the assessment specified in the eligible
20 student's:
21 (A) individualized education program developed under
22 IC 20-35;
23 (B) service plan developed under 511 IAC 7-34;
24 (C) choice special education plan developed under 511
25 IAC 7-49; or
26 (D) Indiana education scholarship account education
27 service plan; or
28 (D) (E) plan developed under Section 504 of the federal
29 Rehabilitation Act of 1973, 29 U.S.C. 794.
30 (b) A parent of an eligible student may enter into a separate
31 agreement under subsection (a) for each child of the parent. However,
32 not more than one (1) account may be established for each eligible
33 student.
34 (c) The account must be established under subsection (a) by a parent
35 of an eligible student or an emancipated eligible student for a school
36 year on or before a date established by the treasurer of state, which
37 must be at least thirty (30) days before the fall ADM count date
38 established by the state board under IC 20-43-4-3. A parent of an
39 eligible student or an emancipated eligible student may not enter into
40 an agreement under this section or maintain an account under this
41 chapter if the eligible student receives a choice scholarship under
42 IC 20-51-4 for the same school year. An eligible student may not
2022 IN 331—LS 7001/DI 120 4
1 receive a grant under section 2 of this chapter if the eligible student is
2 currently included in a school corporation's ADM count under
3 IC 20-43-4. If a student is enrolled in a public school during the
4 same school year in which the student has been deemed eligible for
5 an account under this chapter:
6 (1) the student shall be deemed ineligible for application or
7 renewal;
8 (2) the student shall not receive a grant under section 2 of this
9 chapter; and
10 (3) any accounts in the student's name shall be immediately
11 terminated.
12 (d) Except as provided in subsections (e) and (f), an agreement
13 made under this section is valid for one (1) school year while the
14 eligible student is in kindergarten through grade 12 and may be
15 renewed annually. Upon graduation, or receipt of a certificate of
16 completion under the eligible student's individualized education
17 program, the eligible student's account is terminated.
18 (e) An agreement entered into under this section terminates
19 automatically for an eligible student if:
20 (1) the eligible student no longer resides in Indiana while the
21 eligible student is eligible to receive grants under section 2 of this
22 chapter; or
23 (2) the account is not renewed within three hundred ninety-five
24 (395) days after the date the account was either established or last
25 renewed.
26 If an account is terminated under this section, money in the eligible
27 student's account, including any interest accrued, reverts to the state
28 general fund.
29 (f) An agreement made under this section for an eligible student
30 while the eligible student is in kindergarten through grade 12 may be
31 terminated before the end of the school year if the parent of the eligible
32 student or the emancipated eligible student notifies the treasurer of
33 state in a manner specified by the treasurer of state.
34 (g) A distribution made to an account under section 3 section 2 of
35 this chapter is considered tax exempt as long as the distribution is used
36 for a qualified expense. The amount is subtracted from the definition
37 of adjusted federal gross income under IC 6-3-1-3.5 to the extent the
38 distribution used for the qualified expense is included in the taxpayer's
39 adjusted federal gross income under the Internal Revenue Code.
40 (h) The department shall establish a student test number as
41 described in IC 20-19-3-9.4 for each eligible student. The treasurer of
42 state shall provide the department information necessary for the
2022 IN 331—LS 7001/DI 120 5
1 department to comply with this subsection.
2 SECTION 4. IC 20-51.4-4-2, AS ADDED BY P.L.165-2021,
3 SECTION 180, IS AMENDED TO READ AS FOLLOWS
4 [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) An eligible student who
5 currently maintains an account is entitled to an annual grant amount for
6 each school year until the student graduates. or obtains a certificate of
7 completion under the student's individualized education program. An
8 eligible student may not receive a grant under this section after
9 graduating. or obtaining a certificate of completion. The annual grant
10 amount shall be paid from the fund. The treasurer of state, with notice
11 to the department, shall deposit the annual grant amount under this
12 section, in quarterly deposits, into an eligible student's account in a
13 manner established by the treasurer of state. The treasurer of state may
14 deduct an amount of not more than three percent (3%) from each
15 quarterly distribution to accounts under this article to cover the costs
16 of managing the accounts and administering the program.
17 (b) Except as provided in subsection (c), at the end of the year in
18 which an account is established, the parent of an eligible student or the
19 emancipated eligible student may roll over for use in a subsequent year
20 a maximum of one thousand dollars ($1,000). However, for each year
21 thereafter, the parent of the eligible student or the emancipated eligible
22 student may roll over one thousand dollars ($1,000) plus any amount
23 rolled over in a previous year.
24 (c) An eligible student's account shall terminate the later of:
25 (1) the date the student graduates high school; or
26 (2) July 1 of the year in the year which the student graduates high
27 school.
28 Any money, including interest that remains in the eligible student's
29 account when it terminates under this subsection reverts to the state
30 general fund.
31 SECTION 5. IC 20-51.4-4-3, AS ADDED BY P.L.165-2021,
32 SECTION 180, IS AMENDED TO READ AS FOLLOWS
33 [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The Indiana education
34 scholarship account program fund is established for the purpose of
35 providing grants to eligible students under the program. Money
36 appropriated to the fund during the state fiscal year beginning July 1,
37 2021, and ending June 30, 2022, may only be used for the
38 administrative costs to establish the program. However, money
39 appropriated to the fund during the state fiscal year beginning July 1,
40 2022, and ending June 30, 2023, may be used to provide grants under
41 this chapter in the manner prescribed in section 2 of this chapter.
42 (b) The treasurer of state shall administer the fund.
2022 IN 331—LS 7001/DI 120 6
1 (c) The fund consists of the following:
2 (1) Appropriations by the general assembly.
3 (2) Interest deposited in the fund under subsection (d).
4 (3) Donations, gifts, and money received from any other source,
5 including transfers from other funds or accounts.
6 (3) Amounts transferred to the fund from the Indiana
7 education scholarship account administration fund under
8 section 3.5(e) of this chapter.
9 (d) The treasurer of state shall invest money in the fund not
10 currently needed to meet the obligations of the fund in the same
11 manner as other public money may be invested. Interest that accrues
12 from these investments shall be deposited in the fund.
13 (e) Money in the fund at the end of a state fiscal year reverts to the
14 state general fund.
15 SECTION 6. IC 20-51.4-4-3.5 IS ADDED TO THE INDIANA
16 CODE AS A NEW SECTION TO READ AS FOLLOWS
17 [EFFECTIVE UPON PASSAGE]: Sec. 3.5. (a) The Indiana education
18 scholarship account administration fund is established for the
19 purpose of accepting money for the Indiana education scholarship
20 account program to support administration of the program.
21 (b) The treasurer of state shall administer the fund.
22 (c) The fund consists of the following:
23 (1) Administration fees deposited in the fund under
24 IC 20-51.4-3-7(b).
25 (2) Donations, gifts, and money received from any other
26 source, including transfers from other funds or accounts.
27 (3) Interest deposited in the fund under subsection (d).
28 (d) The treasurer of state shall invest money in the fund not
29 currently needed to meet the obligations of the fund in the same
30 manner as other public money may be invested. Interest that
31 accrues from these investments shall be deposited in the fund.
32 (e) The treasurer of state may transfer any funds held in the
33 fund to the Indiana education scholarship account program fund
34 established by section 3 of this chapter at any time for the purpose
35 of that fund.
36 (f) Money in the fund at the end of a state fiscal year does not
37 revert to the state general fund.
38 SECTION 7. IC 20-51.4-4-4, AS ADDED BY P.L.165-2021,
39 SECTION 180, IS AMENDED TO READ AS FOLLOWS
40 [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Subject to sections 5 and
41 10 of this chapter, the annual grant amount under section 2 of this
42 chapter for an eligible student equals, subject to subsection (b), (d),
2022 IN 331—LS 7001/DI 120 7
1 ninety percent (90%) of the amount determined in the last STEP of the
2 following formula:
3 STEP ONE: Determine the school corporation in which the
4 eligible student has legal settlement.
5 STEP TWO: Determine the amount of state tuition support that
6 the school corporation identified under STEP ONE is eligible to
7 receive under IC 20-43-6 for the state fiscal year in which the
8 immediately preceding school year begins. The amount does not
9 include amounts provided for special education grants under
10 IC 20-43-7, career and technical education grants under
11 IC 20-43-8, or grants under IC 20-43-10.
12 STEP THREE: Determine the result of:
13 (A) the STEP TWO amount; divided by
14 (B) the current ADM (as defined in IC 20-43-1-10) for the
15 school corporation identified under STEP ONE for the state
16 fiscal year used in STEP TWO.
17 (b) An eligible student may choose to receive special education
18 services from the school corporation required to provide the special
19 education services to the eligible student under 511 IAC 7-34-1.
20 However, if an eligible student described in subsection (a) chooses not
21 to receive special education or related services from a school
22 corporation required to provide the services to the eligible student
23 under 511 IAC 7-34-1, the annual grant amount for the eligible student
24 shall, in addition to the amount described in subsection (a), include the
25 amount the school corporation would receive under IC 20-43-7 for the
26 eligible student if the eligible student attended the school corporation.
27 (b) If an eligible student enrolls in a qualified school, the grant
28 calculated under subsection (a) shall be used to pay tuition and fees
29 at that school prior to use of the grant for other qualified expenses,
30 unless the eligible student and the school agree in writing to pay for
31 tuition and fees by a different means. If the eligible student and the
32 school enter into a written agreement under this subsection, the
33 agreement must be submitted to the treasurer of state prior to
34 disbursement of grants to the accounts.
35 (c) An eligible student with a disability shall at the time of
36 application for an account make a choice as part of the application
37 to receive special education services from:
38 (1) the school corporation required to provide the special
39 education services to the eligible student under 511
40 IAC 7-34-11; or
41 (2) a qualified school that provides the necessary special
42 education or related services to the eligible student.
2022 IN 331—LS 7001/DI 120 8
1 (d) The following apply:
2 (1) If an eligible student chooses not to receive special
3 education or related services from a school corporation
4 required to provide the services to the eligible student under
5 511 IAC 7-34-11 or a qualified school under subsection (c)(2),
6 the annual grant amount for the eligible student shall, in
7 addition to the amount described in subsection (a), include the
8 amount the school corporation would receive under
9 IC 20-43-7 for the eligible student if the eligible student
10 attended the school corporation.
11 (2) If an eligible student chooses to receive special education
12 or related services from a school corporation required to
13 provide the services to the eligible student under 511
14 IAC 7-34-11 or a qualified school under subsection (c)(2), the
15 treasurer of state shall transfer directly to the school
16 corporation or qualified school chosen under subsection (c)
17 the full amount of the special education grant for the eligible
18 student under IC 20-43-7.
19 (c) (e) The annual grant amounts provided in subsection (a) shall be
20 rounded as provided in IC 20-43-3-1(4).
21 SECTION 8. IC 20-51.4-4-5, AS ADDED BY P.L.165-2021,
22 SECTION 180, IS AMENDED TO READ AS FOLLOWS
23 [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) If an eligible student's
24 agreement under section 1 of this chapter is in effect for less than an
25 entire school year, the annual grant amount provided under section 2
26 of this chapter for that school year shall be reduced on a prorated basis
27 in a manner prescribed by the treasurer of state to reflect the length of
28 the agreement.
29 (b) In the event If an eligible student's account is terminated
30 because the eligible student enrolls in a school that receives tuition
31 support under IC 20-43, is included in a public school's ADM count
32 under IC 20-43-4, the balance in the account at the time the account
33 is terminated shall be transferred to the school corporation or charter
34 school in which the eligible student enrolls.
35 (c) In the event If that special education grant funding under section
36 4(b) of this chapter has been deposited into the eligible student's
37 account but the eligible student subsequently begins receiving special
38 education services from a school that receives funding under IC 20-43,
39 the balance in the account up to the amount deposited under section
40 4(b) of this chapter shall be transferred to the school corporation or
41 charter school that provides the special education services to the
42 student.
2022 IN 331—LS 7001/DI 120 9
1 SECTION 9. IC 20-51.4-4-8, AS ADDED BY P.L.165-2021,
2 SECTION 180, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE UPON PASSAGE]: Sec. 8. This chapter does not
4 prohibit a parent of an eligible student or an emancipated eligible
5 student from making a payment for any qualified expense from a
6 source other than the eligible student's account. The parent of an
7 eligible student or an emancipated eligible student is responsible for
8 the payment of any qualified expense, including tuition and fees
9 required by a qualified school that is not paid from the eligible student's
10 account.
11 SECTION 10. IC 20-51.4-5-5, AS ADDED BY P.L.165-2021,
12 SECTION 180, IS AMENDED TO READ AS FOLLOWS
13 [EFFECTIVE UPON PASSAGE]: Sec. 5. An approved participating
14 entity:
15 (1) may not charge an eligible student participating in the
16 program an amount greater than a similarly situated student who
17 is receiving the same or similar services; and
18 (2) shall provide a receipt to a parent of an eligible student or an
19 emancipated eligible student for each qualified expense charged
20 for education or related services provided to the eligible student;
21 and
22 (3) may not count a grant received by an eligible student
23 under this chapter for any purpose regarding the calculation
24 or tuition, fees, scholarships, or any other financial aid.
25 SECTION 11. An emergency is declared for this act.
2022 IN 331—LS 7001/DI 120