*SB0331.1*
January 21, 2022
SENATE BILL No. 331
_____
DIGEST OF SB 331 (Updated January 19, 2022 8:22 pm - DI 110)
Citations Affected: IC 20-51.4.
Synopsis: Education scholarship account program. Provides that
"qualified expenses" refers to expenses approved by the treasurer of
state from certain categories. Amends the definition of "qualified
school." Authorizes the treasurer of state to deduct up to 10% of funds
made available for the Indiana education scholarship account program
(program) to cover costs of administering the program. Provides that
the a parent of an eligible student or an emancipated eligible student
must agree to use all of (instead of part of) the money in the education
scholarship account for the student's study in certain subjects or in
accordance with the student's individualized education program,
service plan, choice special education plan, education scholarship
account education service plan, or plan developed under Section 504
of the federal Rehabilitation Act of 1973. 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 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
(Continued next page)
Effective: Upon passage.
Buchanan, Kruse
January 11, 2022, read first time and referred to Committee on Education and Career
Development.
January 20, 2022, amended, reported favorably — Do Pass; reassigned to Committee on
Appropriations.
SB 331—LS 7001/DI 120 Digest Continued
to the eligible student. Specifies the annual grant amount calculation
for an eligible student based on the eligible student's application
choice. Amends the list of individuals or entities that may become
participating entities. Removes provisions that do the following: (1)
Require the treasurer of state to provide online services and capabilities
that include: (A) a method for parents to rate the parent's experience
with a participating entity and the ability for other parents of eligible
students to see the rating; and (B) methods that are intuitive and allow
for contributions to be easily made to an eligible student's account. (2)
Require certain participating entities to post a surety bond or provide
the treasurer of state information regarding unencumbered assets.
Makes technical corrections.
SB 331—LS 7001/DI 120SB 331—LS 7001/DI 120 January 21, 2022
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
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 20-51.4-2-9, AS ADDED BY P.L.165-2021,
2 SECTION 180, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) "Qualified expenses"
4 refers to the following expenses approved by the treasurer of state
5 under IC 20-51.4-3-2.5 and provided by a participating entity. related
6 to the education of an eligible student for which scholarship money in
7 an account may be used:
8 (1) Tuition and fees at a qualified school, public school, or other
9 participating entity.
10 (2) Fees for:
11 (A) national norm referenced or criterion referenced
12 examinations;
13 (B) advanced placement examinations, Cambridge
14 International courses, International Baccalaureate courses, or
15 College-Level Examination Program (CLEP) examinations; or
16 (C) statewide assessments associated with industry recognized
17 credentials.
SB 331—LS 7001/DI 120 2
1 (3) Educational services for an eligible student who is a student
2 with a disability.
3 (4) Payments associated with the use of paraprofessional or
4 educational aides.
5 (5) Services contracted for and provided by a school corporation,
6 charter school, magnet school, or qualified school, including:
7 (A) individual classes;
8 (B) extracurricular activities or programs; or
9 (C) additional programs, resources, or staffing defined in the
10 student's education plan.
11 (6) Occupational therapy for a student with a disability, provided
12 in accordance with the eligible student's individualized education
13 program developed under IC 20-35 or service plan developed
14 under 511 IAC 7-34.
15 (7) Subject to IC 20-51.4-4-7, fees for transportation paid to a
16 fee-for-service transportation provider for the eligible student to
17 travel to and from an approved special education service provider.
18 (8) Tuition and fees to attend training programs and camps that
19 have a focus on:
20 (A) vocational skills;
21 (B) academic skills;
22 (C) life skills;
23 (D) independence; or
24 (E) soft job skills that are character traits and interpersonal
25 skills that characterize a person's relationships with other
26 people.
27 (9) Additional services and therapies prescribed by the eligible
28 student's treating physician in accordance with generally accepted
29 standards of care to improve outcomes for the student in addition
30 to any services currently being provided by the school, insurance,
31 or the Medicaid program.
32 (10) Fees for the management of the account, as described in
33 IC 20-51.4-3-2(c).
34 (b) This subsection does not apply to subsection (a)(3), (a)(6),
35 (a)(7), or (a)(8). The term includes only services that are provided in
36 person. The term does not include any virtual or distance learning
37 services.
38 SECTION 2. IC 20-51.4-2-10, AS ADDED BY P.L.165-2021,
39 SECTION 180, IS AMENDED TO READ AS FOLLOWS
40 [EFFECTIVE UPON PASSAGE]: Sec. 10. "Qualified school" refers to
41 a nonpublic school accredited by either the state board or a national or
42 regional accreditation agency that is recognized by the state board:
SB 331—LS 7001/DI 120 3
1 (1) to which an eligible student is required to pay tuition to attend;
2 and
3 (2) that agrees to enroll an eligible student. public or nonpublic
4 elementary school or high school that:
5 (1) is located in Indiana;
6 (2) requires an eligible student to pay tuition or transfer
7 tuition to attend;
8 (3) voluntarily agrees to enroll an eligible student;
9 (4) is accredited by either the state board or a national or
10 regional accreditation agency that is recognized by the state
11 board;
12 (5) administers the statewide assessment program;
13 (6) is not a charter school or the school corporation in which
14 an eligible student has legal settlement under IC 20-26-11;
15 and
16 (7) submits to the department only the student performance
17 data required for a category designation under IC 20-31-8-3.
18 SECTION 3. IC 20-51.4-3-2.5 IS ADDED TO THE INDIANA
19 CODE AS A NEW SECTION TO READ AS FOLLOWS
20 [EFFECTIVE UPON PASSAGE]: Sec. 2.5. (a) The treasurer of state
21 may approve expenses for which an eligible student may use
22 scholarship money under this chapter in the following categories:
23 (1) Tuition and fees at a qualified school or public school.
24 (2) Fees for:
25 (A) national norm referenced or criterion referenced
26 examinations;
27 (B) advanced placement examinations, Cambridge
28 International courses, International Baccalaureate courses,
29 or College-Level Examination Program (CLEP)
30 examinations; or
31 (C) statewide assessments associated with industry
32 recognized credentials.
33 (3) Educational services for an eligible student at a qualified
34 school, public school, or other participating entity.
35 (4) Payments associated with the use of paraprofessional or
36 educational aides.
37 (5) Services contracted for and provided by a school
38 corporation, charter school, magnet school, or qualified
39 school, including:
40 (A) individual classes;
41 (B) extracurricular activities or programs; or
42 (C) additional programs, resources, or staffing defined in
SB 331—LS 7001/DI 120 4
1 the student's education plan.
2 (6) Subject to IC 20-51.4-4-7, fees for transportation paid to
3 a fee-for-service transportation provider for the eligible
4 student to travel to and from an approved special education
5 service provider.
6 (7) Tuition and fees to attend training programs and camps
7 that have a focus on:
8 (A) vocational skills;
9 (B) academic skills;
10 (C) life skills;
11 (D) independence; or
12 (E) soft job skills that are character traits and
13 interpersonal skills that characterize a person's
14 relationships with other people.
15 (8) Additional services and therapies that are:
16 (A) in addition to any services currently being provided by
17 the school, insurance, or the Medicaid program; and
18 (B) either:
19 (i) provided in accordance with an eligible student's
20 individualized education program, service plan
21 developed under 511 IAC 7-34, or choice special
22 education plan developed under 511 IAC 7-49; or
23 (ii) prescribed or recommended by a physician,
24 therapist, or other provider who is licensed or certified
25 by a state agency (as defined in IC 4-13.1-1-4) and is
26 acting within the scope of the provider's license or
27 certification and prescribed or recommended in
28 accordance with generally accepted standards of care to
29 improve outcomes for an eligible student.
30 (b) This subsection does not apply to subsection (a)(3), (a)(6), or
31 (a)(7). The term includes only services that are provided in person.
32 The term does not include any virtual or distance learning services.
33 SECTION 4. IC 20-51.4-3-5, AS ADDED BY P.L.165-2021,
34 SECTION 180, IS AMENDED TO READ AS FOLLOWS
35 [EFFECTIVE UPON PASSAGE]: Sec. 5. The treasurer of state shall
36 provide online services and capabilities including, but not limited to,
37 the following:
38 (1) A method for parents to submit an application agreement
39 described in IC 20-51.4-4-1(a).
40 (2) A method for a participating entity to submit the intent of the
41 participating entity to participate in the program.
42 (3) A method for parents to identify and select participating
SB 331—LS 7001/DI 120 5
1 entities participating in the program.
2 (4) A method for parents and participating entities to initiate and
3 receive payments from an eligible student's account.
4 (5) A method for parents to rate the parent's experience with a
5 participating entity and the ability for other parents of eligible
6 students to see the rating.
7 (6) Methods that are intuitive and allow for contributions to be
8 easily made to an eligible student's account.
9 (7) (5) Resources the family of an eligible student can access to
10 learn about advocacy groups available to provide information and
11 resources to the eligible student's family.
12 SECTION 5. IC 20-51.4-3-7, AS ADDED BY P.L.165-2021,
13 SECTION 180, IS AMENDED TO READ AS FOLLOWS
14 [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) For each school year, the
15 treasurer of state shall determine, based on the amount of funds
16 available for the program, the number of grants that the treasurer of
17 state will award under the program. The number of applications
18 approved and the number of grants awarded under this article by the
19 treasurer of state for the school year may not exceed the number
20 determined by the treasurer of state under this section.
21 (b) The treasurer of state may deduct an amount of not more
22 than ten percent (10%) from the funds made available for the
23 program to cover costs of managing the accounts and
24 administering the program. Any amount deducted under this
25 subsection shall be deposited in the Indiana education scholarship
26 account administration fund established by IC 20-51.4-4-3.5.
27 SECTION 6. IC 20-51.4-4-1, AS AMENDED BY THE
28 TECHNICAL CORRECTIONS BILL OF THE 2022 GENERAL
29 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 UPON PASSAGE]: Sec. 1. (a) After June 30, 2022, a parent of an
31 eligible student or an emancipated eligible student may establish an
32 Indiana education scholarship account for the eligible student by
33 entering into a written agreement with the treasurer of state on a form
34 prepared by the treasurer of state. The treasurer of state shall establish
35 a date by which an application to establish an account for the
36 2022-2023 upcoming school year must be submitted. However, for a
37 school year beginning after July 1, 2022, applications must be
38 submitted for an eligible student not later than April 1 September 1 for
39 the immediately following school year. The account of an eligible
40 student shall be made in the name of the eligible student. The treasurer
41 of state shall make the agreement available on the Internet web site of
42 the treasurer of state. To be eligible, a parent of an eligible student or
SB 331—LS 7001/DI 120 6
1 an emancipated eligible student wishing to participate in the program
2 must agree that:
3 (1) a grant deposited in the eligible student's account under
4 section 2 of this chapter and any interest that may accrue in the
5 account will be used only for the eligible student's qualified
6 expenses;
7 (2) money in the account when the account is terminated reverts
8 to the state general fund;
9 (3) the parent of the eligible student or the emancipated eligible
10 student will use part of the money in the account:
11 (A) for the eligible student's study in:
12 (i) the subject of reading, grammar, mathematics, social
13 studies, or science; or
14 (ii) any combination of the subjects listed in item (i); or
15 (B) for use in accordance with the eligible student's:
16 (i) individualized education program developed under
17 IC 20-35;
18 (ii) service plan developed under 511 IAC 7-34;
19 (iii) choice special education plan developed under 511
20 IAC 7-49; or
21 (iv) Indiana education scholarship account education
22 service plan; or
23 (iv) (v) plan developed under Section 504 of the federal
24 Rehabilitation Act of 1973, 29 U.S.C. 794;
25 (4) the eligible student will not be enrolled in a school that
26 receives tuition support under IC 20-43; and
27 (5) the eligible student will take the statewide assessment, as
28 applicable based on the eligible student's grade level, as provided
29 under IC 20-32-5.1, or the assessment specified in the eligible
30 student's:
31 (A) individualized education program developed under
32 IC 20-35;
33 (B) service plan developed under 511 IAC 7-34;
34 (C) choice special education plan developed under 511
35 IAC 7-49; or
36 (D) Indiana education scholarship account education
37 service plan; or
38 (D) (E) plan developed under Section 504 of the federal
39 Rehabilitation Act of 1973, 29 U.S.C. 794.
40 (b) A parent of an eligible student may enter into a separate
41 agreement under subsection (a) for each child of the parent. However,
42 not more than one (1) account may be established for each eligible
SB 331—LS 7001/DI 120 7
1 student.
2 (c) The account must be established under subsection (a) by a parent
3 of an eligible student or an emancipated eligible student for a school
4 year on or before a date established by the treasurer of state, which
5 must be at least thirty (30) days before the fall ADM count date
6 established by the state board under IC 20-43-4-3. A parent of an
7 eligible student or an emancipated eligible student may not enter into
8 an agreement under this section or maintain an account under this
9 chapter if the eligible student receives a choice scholarship under
10 IC 20-51-4 for the same school year. An eligible student may not
11 receive a grant under section 2 of this chapter if the eligible student is
12 currently included in a school corporation's ADM count under
13 IC 20-43-4. If a student is enrolled in a public school during the
14 same school year in which the student has been deemed eligible for
15 an account under this chapter:
16 (1) the student shall be deemed ineligible for application or
17 renewal;
18 (2) the student shall not receive a grant under section 2 of this
19 chapter; and
20 (3) any accounts in the student's name shall be immediately
21 terminated.
22 (d) Except as provided in subsections (e) and (f), an agreement
23 made under this section is valid for one (1) school year while the
24 eligible student is in kindergarten through grade 12 and may be
25 renewed annually. Upon graduation, or receipt of a certificate of
26 completion under the eligible student's individualized education
27 program, the eligible student's account is terminated.
28 (e) An agreement entered into under this section terminates
29 automatically for an eligible student if:
30 (1) the eligible student no longer resides in Indiana while the
31 eligible student is eligible to receive grants under section 2 of this
32 chapter; or
33 (2) the account is not renewed within three hundred ninety-five
34 (395) days after the date the account was either established or last
35 renewed.
36 If an account is terminated under this section, money in the eligible
37 student's account, including any interest accrued, reverts to the state
38 general fund.
39 (f) An agreement made under this section for an eligible student
40 while the eligible student is in kindergarten through grade 12 may be
41 terminated before the end of the school year if the parent of the eligible
42 student or the emancipated eligible student notifies the treasurer of
SB 331—LS 7001/DI 120 8
1 state in a manner specified by the treasurer of state.
2 (g) A distribution made to an account under section 3 section 2 of
3 this chapter is considered tax exempt as long as the distribution is used
4 for a qualified expense. The amount is subtracted from the definition
5 of adjusted federal gross income under IC 6-3-1-3.5 to the extent the
6 distribution used for the qualified expense is included in the taxpayer's
7 adjusted federal gross income under the Internal Revenue Code.
8 (h) The department shall establish a student test number as
9 described in IC 20-19-3-9.4 for each eligible student. The treasurer of
10 state shall provide the department information necessary for the
11 department to comply with this subsection.
12 SECTION 7. IC 20-51.4-4-2, AS ADDED BY P.L.165-2021,
13 SECTION 180, IS AMENDED TO READ AS FOLLOWS
14 [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) An eligible student who
15 currently maintains an account is entitled to an annual grant amount for
16 each school year until the student graduates. or obtains a certificate of
17 completion under the student's individualized education program. An
18 eligible student may not receive a grant under this section after
19 graduating. or obtaining a certificate of completion. The annual grant
20 amount shall be paid from the fund. The treasurer of state, with notice
21 to the department, shall deposit the annual grant amount under this
22 section, in quarterly deposits, into an eligible student's account in a
23 manner established by the treasurer of state. The treasurer of state may
24 deduct an amount of not more than three percent (3%) from each
25 quarterly distribution to accounts under this article to cover the costs
26 of managing the accounts and administering the program.
27 (b) Except as provided in subsection (c), at the end of the year in
28 which an account is established, the parent of an eligible student or the
29 emancipated eligible student may roll over for use in a subsequent year
30 a maximum of one thousand dollars ($1,000). However, for each year
31 thereafter, the parent of the eligible student or the emancipated eligible
32 student may roll over one thousand dollars ($1,000) plus any amount
33 rolled over in a previous year.
34 (c) An eligible student's account shall terminate the later of:
35 (1) the date the student graduates high school; or
36 (2) July 1 of the year in the year which the student graduates high
37 school.
38 Any money, including interest that remains in the eligible student's
39 account when it terminates under this subsection reverts to the state
40 general fund.
41 SECTION 8. IC 20-51.4-4-3, AS ADDED BY P.L.165-2021,
42 SECTION 180, IS AMENDED TO READ AS FOLLOWS
SB 331—LS 7001/DI 120 9
1 [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The Indiana education
2 scholarship account program fund is established for the purpose of
3 providing grants to eligible students under the program. Money
4 appropriated to the fund during the state fiscal year beginning July 1,
5 2021, and ending June 30, 2022, may only be used for the
6 administrative costs to establish the program. However, money
7 appropriated to the fund during the state fiscal year beginning July 1,
8 2022, and ending June 30, 2023, may be used to provide grants under
9 this chapter in the manner prescribed in section 2 of this chapter.
10 (b) The treasurer of state shall administer the fund.
11 (c) The fund consists of the following:
12 (1) Appropriations by the general assembly.
13 (2) Interest deposited in the fund under subsection (d).
14 (3) Donations, gifts, and money received from any other source,
15 including transfers from other funds or accounts.
16 (3) Amounts transferred to the fund from the Indiana
17 education scholarship account administration fund under
18 section 3.5(e) of this chapter.
19 (d) The treasurer of state shall invest money in the fund not
20 currently needed to meet the obligations of the fund in the same
21 manner as other public money may be invested. Interest that accrues
22 from these investments shall be deposited in the fund.
23 (e) Money in the fund at the end of a state fiscal year reverts to the
24 state general fund.
25 SECTION 9. IC 20-51.4-4-3.5 IS ADDED TO THE INDIANA
26 CODE AS A NEW SECTION TO READ AS FOLLOWS
27 [EFFECTIVE UPON PASSAGE]: Sec. 3.5. (a) The Indiana education
28 scholarship account administration fund is established for the
29 purpose of accepting money for the Indiana education scholarship
30 account program to support administration of the program.
31 (b) The treasurer of state shall administer the fund.
32 (c) The fund consists of the following:
33 (1) Administration fees deposited in the fund under
34 IC 20-51.4-3-7(b).
35 (2) Donations, gifts, and money received from any other
36 source, including transfers from other funds or accounts.
37 (3) Interest deposited in the fund under subsection (d).
38 (d) The treasurer of state shall invest money in the fund not
39 currently needed to meet the obligations of the fund in the same
40 manner as other public money may be invested. Interest that
41 accrues from these investments shall be deposited in the fund.
42 (e) The treasurer of state may transfer any funds held in the
SB 331—LS 7001/DI 120 10
1 fund to the Indiana education scholarship account program fund
2 established by section 3 of this chapter at any time for the purpose
3 of that fund.
4 (f) Money in the fund at the end of a state fiscal year does not
5 revert to the state general fund.
6 SECTION 10. IC 20-51.4-4-4, AS ADDED BY P.L.165-2021,
7 SECTION 180, IS AMENDED TO READ AS FOLLOWS
8 [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Subject to sections 5 and
9 10 of this chapter, the annual grant amount under section 2 of this
10 chapter for an eligible student equals, subject to subsection (b), (d),
11 ninety percent (90%) of the amount determined in the last STEP of the
12 following formula:
13 STEP ONE: Determine the school corporation in which the
14 eligible student has legal settlement.
15 STEP TWO: Determine the amount of state tuition support that
16 the school corporation identified under STEP ONE is eligible to
17 receive under IC 20-43-6 for the state fiscal year in which the
18 immediately preceding school year begins. The amount does not
19 include amounts provided for special education grants under
20 IC 20-43-7, career and technical education grants under
21 IC 20-43-8, or grants under IC 20-43-10.
22 STEP THREE: Determine the result of:
23 (A) the STEP TWO amount; divided by
24 (B) the current ADM (as defined in IC 20-43-1-10) for the
25 school corporation identified under STEP ONE for the state
26 fiscal year used in STEP TWO.
27 (b) An eligible student may choose to receive special education
28 services from the school corporation required to provide the special
29 education services to the eligible student under 511 IAC 7-34-1.
30 However, if an eligible student described in subsection (a) chooses not
31 to receive special education or related services from a school
32 corporation required to provide the services to the eligible student
33 under 511 IAC 7-34-1, the annual grant amount for the eligible student
34 shall, in addition to the amount described in subsection (a), include the
35 amount the school corporation would receive under IC 20-43-7 for the
36 eligible student if the eligible student attended the school corporation.
37 (b) If an eligible student enrolls in a qualified school, the grant
38 calculated under subsection (a) shall be used to pay tuition and fees
39 at that school prior to use of the grant for other qualified expenses,
40 unless the eligible student and the school agree in writing to pay for
41 tuition and fees by a different means. If the eligible student and the
42 school enter into a written agreement under this subsection, the
SB 331—LS 7001/DI 120 11
1 agreement must be submitted to the treasurer of state prior to
2 disbursement of grants to the accounts.
3 (c) An eligible student with a disability shall at the time of
4 application for an account make a choice as part of the application
5 to receive special education services from:
6 (1) the school corporation required to provide the special
7 education services to the eligible student under 511
8 IAC 7-34-11; or
9 (2) a qualified school that provides the necessary special
10 education or related services to the eligible student.
11 (d) The following apply:
12 (1) If an eligible student chooses not to receive special
13 education or related services from a school corporation
14 required to provide the services to the eligible student under
15 511 IAC 7-34-11 or a qualified school under subsection (c)(2),
16 the annual grant amount for the eligible student shall, in
17 addition to the amount described in subsection (a), include the
18 amount the school corporation would receive under
19 IC 20-43-7 for the eligible student if the eligible student
20 attended the school corporation.
21 (2) If an eligible student chooses to receive special education
22 or related services from a school corporation required to
23 provide the services to the eligible student under 511
24 IAC 7-34-11 or a qualified school under subsection (c)(2), the
25 treasurer of state shall transfer directly to the school
26 corporation or qualified school chosen under subsection (c)
27 the full amount of the special education grant for the eligible
28 student under IC 20-43-7.
29 (c) (e) The annual grant amounts provided in subsection (a) shall be
30 rounded as provided in IC 20-43-3-1(4).
31 SECTION 11. IC 20-51.4-4-5, AS ADDED BY P.L.165-2021,
32 SECTION 180, IS AMENDED TO READ AS FOLLOWS
33 [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) If an eligible student's
34 agreement under section 1 of this chapter is in effect for less than an
35 entire school year, the annual grant amount provided under section 2
36 of this chapter for that school year shall be reduced on a prorated basis
37 in a manner prescribed by the treasurer of state to reflect the length of
38 the agreement.
39 (b) In the event If an eligible student's account is terminated
40 because the eligible student enrolls in a school that receives tuition
41 support under IC 20-43, is included in a public school's ADM count
42 under IC 20-43-4, the balance in the account at the time the account
SB 331—LS 7001/DI 120 12
1 is terminated shall be transferred to the school corporation or charter
2 school in which the eligible student enrolls.
3 (c) In the event If that special education grant funding under section
4 4(b) 4(d) of this chapter has been deposited into the eligible student's
5 account but the eligible student subsequently begins receiving special
6 education services from a school that receives funding under IC 20-43,
7 the balance in the account up to the amount deposited under section
8 4(b) 4(d) of this chapter shall be transferred to the school corporation
9 or charter school that provides the special education services to the
10 student.
11 SECTION 12. IC 20-51.4-4-8, AS ADDED BY P.L.165-2021,
12 SECTION 180, IS AMENDED TO READ AS FOLLOWS
13 [EFFECTIVE UPON PASSAGE]: Sec. 8. This chapter does not
14 prohibit a parent of an eligible student or an emancipated eligible
15 student from making a payment for any qualified expense from a
16 source other than the eligible student's account. The parent of an
17 eligible student or an emancipated eligible student is responsible for
18 the payment of any qualified expense, including tuition and fees
19 required by a qualified school that is not paid from the eligible student's
20 account.
21 SECTION 13. IC 20-51.4-5-2, AS ADDED BY P.L.165-2021,
22 SECTION 180, IS AMENDED TO READ AS FOLLOWS
23 [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The following individuals
24 or entities may become a participating entity by submitting an
25 application to the treasurer of state in a manner prescribed by the
26 treasurer of state:
27 (1) A qualified school.
28 (2) An individual who or tutoring agency that provides private
29 tutoring.
30 (3) An individual who or entity that provides services to a student
31 with a disability in accordance with an individualized education
32 program developed under IC 20-35 or a service plan developed
33 under 511 IAC 7-34 or generally accepted standards of care
34 prescribed by the eligible student's treating physician.
35 (4) An individual who or entity that offers a course or program to
36 an eligible student.
37 (5) A licensed occupational physician, therapist, or other
38 provider who:
39 (A) is licensed or certified by a state agency (as defined in
40 IC 4-13.1-1-4); and
41 (B) provides educational services to an eligible student
42 with a disability within the scope of the provider's license
SB 331—LS 7001/DI 120 13
1 or certification.
2 (6) Entities that provide assessments.
3 (b) The treasurer of state shall approve an application submitted
4 under subsection (a) if the individual or entity meets the criteria to
5 serve as a participating entity.
6 (c) If it is reasonably expected by the treasurer of state that a
7 participating entity will receive, from payments made under the
8 program, more than fifty thousand dollars ($50,000) during a particular
9 school year, the participating entity shall, on or before a date prescribed
10 by the treasurer of state:
11 (1) post a surety bond in an amount equal to the amount expected
12 to be paid to the participating entity under the program for the
13 particular school year; or
14 (2) provide the treasurer of state evidence, in a manner prescribed
15 by the treasurer of state, indicating that the participating entity has
16 unencumbered assets sufficient to pay the treasurer of state an
17 amount equal to the amount expected to be paid to the
18 participating entity under the program during the particular school
19 year.
20 (d) (c) Each participating entity that accepts payments made from
21 an account under this article shall provide a receipt to the parent of an
22 eligible student or to the emancipated eligible student for each payment
23 made.
24 SECTION 14. IC 20-51.4-5-5, AS ADDED BY P.L.165-2021,
25 SECTION 180, IS AMENDED TO READ AS FOLLOWS
26 [EFFECTIVE UPON PASSAGE]: Sec. 5. An approved participating
27 entity:
28 (1) may not charge an eligible student participating in the
29 program an amount greater than a similarly situated student who
30 is receiving the same or similar services; and
31 (2) shall provide a receipt to a parent of an eligible student or an
32 emancipated eligible student for each qualified expense charged
33 for education or related services provided to the eligible student;
34 and
35 (3) may not count a grant received by an eligible student
36 under this chapter for any purpose regarding the calculation
37 or tuition, fees, scholarships, or any other financial aid.
38 SECTION 15. An emergency is declared for this act.
SB 331—LS 7001/DI 120 14
COMMITTEE REPORT
Madam President: The Senate Committee on Education and Career
Development, to which was referred Senate Bill No. 331, has had the
same under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill be AMENDED as
follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 20-51.4-2-9, AS ADDED BY P.L.165-2021,
SECTION 180, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 9. (a) "Qualified expenses"
refers to the following expenses approved by the treasurer of state
under IC 20-51.4-3-2.5 and provided by a participating entity. related
to the education of an eligible student for which scholarship money in
an account may be used:
(1) Tuition and fees at a qualified school, public school, or other
participating entity.
(2) Fees for:
(A) national norm referenced or criterion referenced
examinations;
(B) advanced placement examinations, Cambridge
International courses, International Baccalaureate courses, or
College-Level Examination Program (CLEP) examinations; or
(C) statewide assessments associated with industry recognized
credentials.
(3) Educational services for an eligible student who is a student
with a disability.
(4) Payments associated with the use of paraprofessional or
educational aides.
(5) Services contracted for and provided by a school corporation,
charter school, magnet school, or qualified school, including:
(A) individual classes;
(B) extracurricular activities or programs; or
(C) additional programs, resources, or staffing defined in the
student's education plan.
(6) Occupational therapy for a student with a disability, provided
in accordance with the eligible student's individualized education
program developed under IC 20-35 or service plan developed
under 511 IAC 7-34.
(7) Subject to IC 20-51.4-4-7, fees for transportation paid to a
fee-for-service transportation provider for the eligible student to
SB 331—LS 7001/DI 120 15
travel to and from an approved special education service provider.
(8) Tuition and fees to attend training programs and camps that
have a focus on:
(A) vocational skills;
(B) academic skills;
(C) life skills;
(D) independence; or
(E) soft job skills that are character traits and interpersonal
skills that characterize a person's relationships with other
people.
(9) Additional services and therapies prescribed by the eligible
student's treating physician in accordance with generally accepted
standards of care to improve outcomes for the student in addition
to any services currently being provided by the school, insurance,
or the Medicaid program.
(10) Fees for the management of the account, as described in
IC 20-51.4-3-2(c).
(b) This subsection does not apply to subsection (a)(3), (a)(6),
(a)(7), or (a)(8). The term includes only services that are provided in
person. The term does not include any virtual or distance learning
services.
SECTION 2. IC 20-51.4-2-10, AS ADDED BY P.L.165-2021,
SECTION 180, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 10. "Qualified school" refers to
a nonpublic school accredited by either the state board or a national or
regional accreditation agency that is recognized by the state board:
(1) to which an eligible student is required to pay tuition to attend;
and
(2) that agrees to enroll an eligible student. public or nonpublic
elementary school or high school that:
(1) is located in Indiana;
(2) requires an eligible student to pay tuition or transfer
tuition to attend;
(3) voluntarily agrees to enroll an eligible student;
(4) is accredited by either the state board or a national or
regional accreditation agency that is recognized by the state
board;
(5) administers the statewide assessment program;
(6) is not a charter school or the school corporation in which
an eligible student has legal settlement under IC 20-26-11;
and
(7) submits to the department only the student performance
SB 331—LS 7001/DI 120 16
data required for a category designation under IC 20-31-8-3.
SECTION 3. IC 20-51.4-3-2.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2.5. (a) The treasurer of state
may approve expenses for which an eligible student may use
scholarship money under this chapter in the following categories:
(1) Tuition and fees at a qualified school or public school.
(2) Fees for:
(A) national norm referenced or criterion referenced
examinations;
(B) advanced placement examinations, Cambridge
International courses, International Baccalaureate courses,
or College-Level Examination Program (CLEP)
examinations; or
(C) statewide assessments associated with industry
recognized credentials.
(3) Educational services for an eligible student at a qualified
school, public school, or other participating entity.
(4) Payments associated with the use of paraprofessional or
educational aides.
(5) Services contracted for and provided by a school
corporation, charter school, magnet school, or qualified
school, including:
(A) individual classes;
(B) extracurricular activities or programs; or
(C) additional programs, resources, or staffing defined in
the student's education plan.
(6) Subject to IC 20-51.4-4-7, fees for transportation paid to
a fee-for-service transportation provider for the eligible
student to travel to and from an approved special education
service provider.
(7) Tuition and fees to attend training programs and camps
that have a focus on:
(A) vocational skills;
(B) academic skills;
(C) life skills;
(D) independence; or
(E) soft job skills that are character traits and
interpersonal skills that characterize a person's
relationships with other people.
(8) Additional services and therapies that are:
(A) in addition to any services currently being provided by
SB 331—LS 7001/DI 120 17
the school, insurance, or the Medicaid program; and
(B) either:
(i) provided in accordance with an eligible student's
individualized education program, service plan
developed under 511 IAC 7-34, or choice special
education plan developed under 511 IAC 7-49; or
(ii) prescribed or recommended by a physician,
therapist, or other provider who is licensed or certified
by a state agency (as defined in IC 4-13.1-1-4) and is
acting within the scope of the provider's license or
certification and prescribed or recommended in
accordance with generally accepted standards of care to
improve outcomes for an eligible student.
(b) This subsection does not apply to subsection (a)(3), (a)(6), or
(a)(7). The term includes only services that are provided in person.
The term does not include any virtual or distance learning services.
SECTION 4. IC 20-51.4-3-5, AS ADDED BY P.L.165-2021,
SECTION 180, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. The treasurer of state shall
provide online services and capabilities including, but not limited to,
the following:
(1) A method for parents to submit an application agreement
described in IC 20-51.4-4-1(a).
(2) A method for a participating entity to submit the intent of the
participating entity to participate in the program.
(3) A method for parents to identify and select participating
entities participating in the program.
(4) A method for parents and participating entities to initiate and
receive payments from an eligible student's account.
(5) A method for parents to rate the parent's experience with a
participating entity and the ability for other parents of eligible
students to see the rating.
(6) Methods that are intuitive and allow for contributions to be
easily made to an eligible student's account.
(7) (5) Resources the family of an eligible student can access to
learn about advocacy groups available to provide information and
resources to the eligible student's family.".
Page 1, line 12, after "managing" insert "the".
Page 1, delete lines 16 through 17.
Page 2, delete lines 1 through 18.
Page 3, line 2, strike "part of".
Page 3, line 3, delete "in" and insert "in:
SB 331—LS 7001/DI 120 18
(i)".
Page 3, between lines 4 and 5, began a new line triple block
indented and insert:
"(ii) any combination of the subjects listed in item (i);
or".
Page 3, line 5, double block indent "(B) for use in accordance with
the eligible student's:".
Page 7, line 1, reset in roman "ninety percent (90%) of".
Page 8, line 36, strike "4(b)" and insert "4(d)".
Page 8, line 40, strike "4(b)" and insert "4(d)".
Page 9, between lines 10 and 11, begin a new paragraph and insert:
"SECTION 13. IC 20-51.4-5-2, AS ADDED BY P.L.165-2021,
SECTION 180, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The following individuals
or entities may become a participating entity by submitting an
application to the treasurer of state in a manner prescribed by the
treasurer of state:
(1) A qualified school.
(2) An individual who or tutoring agency that provides private
tutoring.
(3) An individual who or entity that provides services to a student
with a disability in accordance with an individualized education
program developed under IC 20-35 or a service plan developed
under 511 IAC 7-34 or generally accepted standards of care
prescribed by the eligible student's treating physician.
(4) An individual who or entity that offers a course or program to
an eligible student.
(5) A licensed occupational physician, therapist, or other
provider who:
(A) is licensed or certified by a state agency (as defined in
IC 4-13.1-1-4); and
(B) provides educational services to an eligible student
with a disability within the scope of the provider's license
or certification.
(6) Entities that provide assessments.
(b) The treasurer of state shall approve an application submitted
under subsection (a) if the individual or entity meets the criteria to
serve as a participating entity.
(c) If it is reasonably expected by the treasurer of state that a
participating entity will receive, from payments made under the
program, more than fifty thousand dollars ($50,000) during a particular
school year, the participating entity shall, on or before a date prescribed
SB 331—LS 7001/DI 120 19
by the treasurer of state:
(1) post a surety bond in an amount equal to the amount expected
to be paid to the participating entity under the program for the
particular school year; or
(2) provide the treasurer of state evidence, in a manner prescribed
by the treasurer of state, indicating that the participating entity has
unencumbered assets sufficient to pay the treasurer of state an
amount equal to the amount expected to be paid to the
participating entity under the program during the particular school
year.
(d) (c) Each participating entity that accepts payments made from
an account under this article shall provide a receipt to the parent of an
eligible student or to the emancipated eligible student for each payment
made.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass and be reassigned to the
Senate Committee on Appropriations.
(Reference is to SB 331 as introduced.)
RAATZ, Chairperson
Committee Vote: Yeas 8, Nays 3.
SB 331—LS 7001/DI 120