*SB0331.2* January 28, 2022 SENATE BILL No. 331 _____ DIGEST OF SB 331 (Updated January 27, 2022 2:19 pm - DI 129) Citations Affected: IC 20-28; IC 20-51.4. Synopsis: Education matters. Requires the department of education to annually report to the legislative council and the state budget committee on certain matters regarding full-time teacher salaries and benefits and the issuance of waivers of the requirement that a school corporation expend a specified percentage of tuition support for full- time teacher salaries. Authorizes the treasurer of state (treasurer) to deduct up to 10% of funds made available for the Indiana education scholarship account program (program) to cover costs of administering the program in the first year and up to 5% of funds made available in each year thereafter. Establishes the Indiana education scholarship account administration fund (fund) to support the administration of the program. Requires any amounts deducted by the treasurer for administration costs to be deposited in the fund. Makes technical corrections. Effective: Upon passage; July 1, 2022. 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. January 27, 2022, amended, reported favorably — Do Pass. SB 331—LS 7001/DI 120 January 28, 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 20-28-9-28, AS ADDED BY P.L.165-2021, 2 SECTION 156, IS AMENDED TO READ AS FOLLOWS 3 [EFFECTIVE JULY 1, 2022]: Sec. 28. (a) For each school year in a 4 state fiscal year beginning after June 30, 2021, a school corporation 5 shall expend an amount for full-time teacher salaries that is not less 6 than an amount equal to forty-five percent (45%) of the state tuition 7 support distributed to the school corporation during the state fiscal 8 year. 9 (b) If a school corporation determines that the school corporation 10 cannot comply with the requirement under subsection (a) for a 11 particular school year, the school corporation shall apply for a waiver 12 from the department. 13 (c) The waiver application must include an explanation of the 14 financial challenges, with detailed data, that preclude the school 15 corporation from meeting the requirement under subsection (a) and 16 describe the cost saving measures taken by the school corporation in 17 attempting to meet the requirement in subsection (a). The waiver may SB 331—LS 7001/DI 120 2 1 also include an explanation of an innovative or efficient approach in 2 delivering instruction that is responsible for the school corporation 3 being unable to meet the requirement under subsection (a). 4 (d) If, after review, the department determines that the school 5 corporation has exhausted all reasonable efforts in attempting to meet 6 the requirement in subsection (a), the department may grant the school 7 corporation a one (1) year exception from the requirement. 8 (e) A school corporation that receives a waiver under this section 9 shall work with the department to develop a plan to identify additional 10 cost saving measures and any other steps that may be taken to allow the 11 school corporation to meet the requirement under subsection (a). 12 (f) A school corporation may not receive more than three (3) 13 waivers under this section. 14 (g) Before November 1, 2022, and before November 1 of each 15 year thereafter, the department shall submit a report to the 16 legislative council in an electronic format under IC 5-14-6 and the 17 state budget committee that contains information as to: 18 (1) the percent and amount that each school corporation 19 expended and the statewide total expended for full-time 20 teacher salaries; 21 (2) the percent and amount that each school corporation 22 expended and statewide total expended for full-time teacher 23 benefits, including health, dental, life insurance, and pension 24 benefits; 25 (3) whether the school corporation met the requirement set 26 forth in subsection (a); and 27 (4) whether the school corporation received a waiver under 28 subsection (d). 29 SECTION 2. IC 20-51.4-3-7, AS ADDED BY P.L.165-2021, 30 SECTION 180, IS AMENDED TO READ AS FOLLOWS 31 [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) For each school year, the 32 treasurer of state shall determine, based on the amount of funds 33 available for the program, the number of grants that the treasurer of 34 state will award under the program. The number of applications 35 approved and the number of grants awarded under this article by the 36 treasurer of state for the school year may not exceed the number 37 determined by the treasurer of state under this section. 38 (b) The treasurer of state may deduct the following amounts 39 from the funds made available for the program to cover costs of 40 managing accounts and administering the program: 41 (1) For the first year of the program, not more than ten 42 percent (10%) of the funds made available to cover the costs SB 331—LS 7001/DI 120 3 1 described in this subsection. 2 (2) For each year thereafter, not more than five percent (5%) 3 of the funds made available to cover the costs described in this 4 subsection. 5 Any amount deducted under this subsection shall be deposited in 6 the Indiana education scholarship account administration fund 7 established by IC 20-51.4-4-3.5. 8 SECTION 3. IC 20-51.4-4-1, AS AMENDED BY THE 9 TECHNICAL CORRECTIONS BILL OF THE 2022 GENERAL 10 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 11 UPON PASSAGE]: Sec. 1. (a) After June 30, 2022, a parent of an 12 eligible student or an emancipated eligible student may establish an 13 Indiana education scholarship account for the eligible student by 14 entering into a written agreement with the treasurer of state on a form 15 prepared by the treasurer of state. The treasurer of state shall establish 16 a date by which an application to establish an account for the 17 2022-2023 upcoming school year must be submitted. However, for a 18 school year beginning after July 1, 2022, applications must be 19 submitted for an eligible student not later than April 1 September 1 for 20 the immediately following school year. The account of an eligible 21 student shall be made in the name of the eligible student. The treasurer 22 of state shall make the agreement available on the Internet web site of 23 the treasurer of state. To be eligible, a parent of an eligible student or 24 an emancipated eligible student wishing to participate in the program 25 must agree that: 26 (1) a grant deposited in the eligible student's account under 27 section 2 of this chapter and any interest that may accrue in the 28 account will be used only for the eligible student's qualified 29 expenses; 30 (2) money in the account when the account is terminated reverts 31 to the state general fund; 32 (3) the parent of the eligible student or the emancipated eligible 33 student will use part of the money in the account: 34 (A) for the eligible student's study in the subject of reading, 35 grammar, mathematics, social studies, or science; or 36 (B) for use in accordance with the eligible student's: 37 (i) individualized education program; 38 (ii) service plan developed under 511 IAC 7-34; 39 (iii) choice special education plan developed under 511 40 IAC 7-49; or 41 (iv) plan developed under Section 504 of the federal 42 Rehabilitation Act of 1973, 29 U.S.C. 794; SB 331—LS 7001/DI 120 4 1 (4) the eligible student will not be enrolled in a school that 2 receives tuition support under IC 20-43; and 3 (5) the eligible student will take the statewide assessment, as 4 applicable based on the eligible student's grade level, as provided 5 under IC 20-32-5.1, or the assessment specified in the eligible 6 student's: 7 (A) individualized education program developed under 8 IC 20-35; 9 (B) service plan developed under 511 IAC 7-34; 10 (C) choice special education plan developed under 511 11 IAC 7-49; or 12 (D) plan developed under Section 504 of the federal 13 Rehabilitation Act of 1973, 29 U.S.C. 794. 14 (b) A parent of an eligible student may enter into a separate 15 agreement under subsection (a) for each child of the parent. However, 16 not more than one (1) account may be established for each eligible 17 student. 18 (c) The account must be established under subsection (a) by a parent 19 of an eligible student or an emancipated eligible student for a school 20 year on or before a date established by the treasurer of state, which 21 must be at least thirty (30) days before the fall ADM count date 22 established by the state board under IC 20-43-4-3. A parent of an 23 eligible student or an emancipated eligible student may not enter into 24 an agreement under this section or maintain an account under this 25 chapter if the eligible student receives a choice scholarship under 26 IC 20-51-4 for the same school year. An eligible student may not 27 receive a grant under section 2 of this chapter if the eligible student is 28 currently included in a school corporation's ADM count under 29 IC 20-43-4. 30 (d) Except as provided in subsections (e) and (f), an agreement 31 made under this section is valid for one (1) school year while the 32 eligible student is in kindergarten through grade 12 and may be 33 renewed annually. Upon graduation, or receipt of a certificate of 34 completion under the eligible student's individualized education 35 program, the eligible student's account is terminated. 36 (e) An agreement entered into under this section terminates 37 automatically for an eligible student if: 38 (1) the eligible student no longer resides in Indiana while the 39 eligible student is eligible to receive grants under section 2 of this 40 chapter; or 41 (2) the account is not renewed within three hundred ninety-five 42 (395) days after the date the account was either established or last SB 331—LS 7001/DI 120 5 1 renewed. 2 If an account is terminated under this section, money in the eligible 3 student's account, including any interest accrued, reverts to the state 4 general fund. 5 (f) An agreement made under this section for an eligible student 6 while the eligible student is in kindergarten through grade 12 may be 7 terminated before the end of the school year if the parent of the eligible 8 student or the emancipated eligible student notifies the treasurer of 9 state in a manner specified by the treasurer of state. 10 (g) A distribution made to an account under section 3 section 2 of 11 this chapter is considered tax exempt as long as the distribution is used 12 for a qualified expense. The amount is subtracted from the definition 13 of adjusted federal gross income under IC 6-3-1-3.5 to the extent the 14 distribution used for the qualified expense is included in the taxpayer's 15 adjusted federal gross income under the Internal Revenue Code. 16 (h) The department shall establish a student test number as 17 described in IC 20-19-3-9.4 for each eligible student. The treasurer of 18 state shall provide the department information necessary for the 19 department to comply with this subsection. 20 SECTION 4. IC 20-51.4-4-3, AS ADDED BY P.L.165-2021, 21 SECTION 180, IS AMENDED TO READ AS FOLLOWS 22 [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The Indiana education 23 scholarship account program fund is established for the purpose of 24 providing grants to eligible students under the program. Money 25 appropriated to the fund during the state fiscal year beginning July 1, 26 2021, and ending June 30, 2022, may only be used for the 27 administrative costs to establish the program. However, money 28 appropriated to the fund during the state fiscal year beginning July 1, 29 2022, and ending June 30, 2023, may be used to provide grants under 30 this chapter in the manner prescribed in section 2 of this chapter. 31 (b) The treasurer of state shall administer the fund. 32 (c) The fund consists of the following: 33 (1) Appropriations by the general assembly. 34 (2) Interest deposited in the fund under subsection (d). 35 (3) Donations, gifts, and money received from any other source, 36 including transfers from other funds or accounts. 37 (4) Amounts transferred to the fund from the Indiana 38 education scholarship account administration fund under 39 section 3.5(e) of this chapter. 40 (d) The treasurer of state shall invest money in the fund not 41 currently needed to meet the obligations of the fund in the same 42 manner as other public money may be invested. Interest that accrues SB 331—LS 7001/DI 120 6 1 from these investments shall be deposited in the fund. 2 (e) Money in the fund at the end of a state fiscal year reverts to the 3 state general fund. 4 SECTION 5. IC 20-51.4-4-3.5 IS ADDED TO THE INDIANA 5 CODE AS A NEW SECTION TO READ AS FOLLOWS 6 [EFFECTIVE UPON PASSAGE]: Sec. 3.5. (a) The Indiana education 7 scholarship account administration fund is established for the 8 purpose of accepting money for the Indiana education scholarship 9 account program to support administration of the program. 10 (b) The treasurer of state shall administer the fund. 11 (c) The fund consists of the following: 12 (1) Administration fees deposited in the fund under 13 IC 20-51.4-3-7(b). 14 (2) Donations, gifts, and money received from any other 15 source, including transfers from other funds or accounts. 16 (3) Interest deposited in the fund under subsection (d). 17 (d) The treasurer of state shall invest money in the fund not 18 currently needed to meet the obligations of the fund in the same 19 manner as other public money may be invested. Interest that 20 accrues from these investments shall be deposited in the fund. 21 (e) The treasurer of state may transfer any funds held in the 22 fund to the Indiana education scholarship account program fund 23 established by section 3 of this chapter at any time for the purpose 24 of that fund. 25 SECTION 6. An emergency is declared for this act. SB 331—LS 7001/DI 120 7 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 8 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 9 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 10 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 11 (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 12 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. _____ COMMITTEE REPORT Madam President: The Senate Committee on Appropriations, 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, delete lines 1 through 17, begin a new paragraph and insert: "SECTION 1. IC 20-28-9-28, AS ADDED BY P.L.165-2021, SECTION 156, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 28. (a) For each school year in a state fiscal year beginning after June 30, 2021, a school corporation shall expend an amount for full-time teacher salaries that is not less than an amount equal to forty-five percent (45%) of the state tuition support distributed to the school corporation during the state fiscal year. (b) If a school corporation determines that the school corporation cannot comply with the requirement under subsection (a) for a SB 331—LS 7001/DI 120 13 particular school year, the school corporation shall apply for a waiver from the department. (c) The waiver application must include an explanation of the financial challenges, with detailed data, that preclude the school corporation from meeting the requirement under subsection (a) and describe the cost saving measures taken by the school corporation in attempting to meet the requirement in subsection (a). The waiver may also include an explanation of an innovative or efficient approach in delivering instruction that is responsible for the school corporation being unable to meet the requirement under subsection (a). (d) If, after review, the department determines that the school corporation has exhausted all reasonable efforts in attempting to meet the requirement in subsection (a), the department may grant the school corporation a one (1) year exception from the requirement. (e) A school corporation that receives a waiver under this section shall work with the department to develop a plan to identify additional cost saving measures and any other steps that may be taken to allow the school corporation to meet the requirement under subsection (a). (f) A school corporation may not receive more than three (3) waivers under this section. (g) Before November 1, 2022, and before November 1 of each year thereafter, the department shall submit a report to the legislative council in an electronic format under IC 5-14-6 and the state budget committee that contains information as to: (1) the percent and amount that each school corporation expended and the statewide total expended for full-time teacher salaries; (2) the percent and amount that each school corporation expended and statewide total expended for full-time teacher benefits, including health, dental, life insurance, and pension benefits; (3) whether the school corporation met the requirement set forth in subsection (a); and (4) whether the school corporation received a waiver under subsection (d).". Delete pages 2 through 4. Page 5, delete lines 1 through 11. Page 5, delete lines 21 through 42, begin a new paragraph and insert: "(b) The treasurer of state may deduct the following amounts from the funds made available for the program to cover costs of managing accounts and administering the program: SB 331—LS 7001/DI 120 14 (1) For the first year of the program, not more than ten percent (10%) of the funds made available to cover the costs described in this subsection. (2) For each year thereafter, not more than five percent (5%) of the funds made available to cover the costs described in this subsection. Any amount deducted under this subsection shall be deposited in the Indiana education scholarship account administration fund established by IC 20-51.4-4-3.5. SECTION 3. IC 20-51.4-4-1, AS AMENDED BY THE TECHNICAL CORRECTIONS BILL OF THE 2022 GENERAL ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) After June 30, 2022, a parent of an eligible student or an emancipated eligible student may establish an Indiana education scholarship account for the eligible student by entering into a written agreement with the treasurer of state on a form prepared by the treasurer of state. The treasurer of state shall establish a date by which an application to establish an account for the 2022-2023 upcoming school year must be submitted. However, for a school year beginning after July 1, 2022, applications must be submitted for an eligible student not later than April 1 September 1 for the immediately following school year. The account of an eligible student shall be made in the name of the eligible student. The treasurer of state shall make the agreement available on the Internet web site of the treasurer of state. To be eligible, a parent of an eligible student or an emancipated eligible student wishing to participate in the program must agree that: (1) a grant deposited in the eligible student's account under section 2 of this chapter and any interest that may accrue in the account will be used only for the eligible student's qualified expenses; (2) money in the account when the account is terminated reverts to the state general fund; (3) the parent of the eligible student or the emancipated eligible student will use part of the money in the account: (A) for the eligible student's study in the subject of reading, grammar, mathematics, social studies, or science; or (B) for use in accordance with the eligible student's: (i) individualized education program; (ii) service plan developed under 511 IAC 7-34; (iii) choice special education plan developed under 511 IAC 7-49; or SB 331—LS 7001/DI 120 15 (iv) plan developed under Section 504 of the federal Rehabilitation Act of 1973, 29 U.S.C. 794; (4) the eligible student will not be enrolled in a school that receives tuition support under IC 20-43; and (5) the eligible student will take the statewide assessment, as applicable based on the eligible student's grade level, as provided under IC 20-32-5.1, or the assessment specified in the eligible student's: (A) individualized education program developed under IC 20-35; (B) service plan developed under 511 IAC 7-34; (C) choice special education plan developed under 511 IAC 7-49; or (D) plan developed under Section 504 of the federal Rehabilitation Act of 1973, 29 U.S.C. 794. (b) A parent of an eligible student may enter into a separate agreement under subsection (a) for each child of the parent. However, not more than one (1) account may be established for each eligible student. (c) The account must be established under subsection (a) by a parent of an eligible student or an emancipated eligible student for a school year on or before a date established by the treasurer of state, which must be at least thirty (30) days before the fall ADM count date established by the state board under IC 20-43-4-3. A parent of an eligible student or an emancipated eligible student may not enter into an agreement under this section or maintain an account under this chapter if the eligible student receives a choice scholarship under IC 20-51-4 for the same school year. An eligible student may not receive a grant under section 2 of this chapter if the eligible student is currently included in a school corporation's ADM count under IC 20-43-4. (d) Except as provided in subsections (e) and (f), an agreement made under this section is valid for one (1) school year while the eligible student is in kindergarten through grade 12 and may be renewed annually. Upon graduation, or receipt of a certificate of completion under the eligible student's individualized education program, the eligible student's account is terminated. (e) An agreement entered into under this section terminates automatically for an eligible student if: (1) the eligible student no longer resides in Indiana while the eligible student is eligible to receive grants under section 2 of this chapter; or SB 331—LS 7001/DI 120 16 (2) the account is not renewed within three hundred ninety-five (395) days after the date the account was either established or last renewed. If an account is terminated under this section, money in the eligible student's account, including any interest accrued, reverts to the state general fund. (f) An agreement made under this section for an eligible student while the eligible student is in kindergarten through grade 12 may be terminated before the end of the school year if the parent of the eligible student or the emancipated eligible student notifies the treasurer of state in a manner specified by the treasurer of state. (g) A distribution made to an account under section 3 section 2 of this chapter is considered tax exempt as long as the distribution is used for a qualified expense. The amount is subtracted from the definition of adjusted federal gross income under IC 6-3-1-3.5 to the extent the distribution used for the qualified expense is included in the taxpayer's adjusted federal gross income under the Internal Revenue Code. (h) The department shall establish a student test number as described in IC 20-19-3-9.4 for each eligible student. The treasurer of state shall provide the department information necessary for the department to comply with this subsection.". Delete pages 6 through 7. Page 8, delete lines 1 through 40. Page 9, reset in roman lines 14 through 15. Page 9, line 16, delete "(3)" and insert "(4)". Page 10, delete lines 4 through 42. Delete pages 11 through 12. Page 13, delete lines 1 through 37. Renumber all SECTIONS consecutively. and when so amended that said bill do pass. (Reference is to SB 331 as printed January 21, 2022.) MISHLER, Chairperson Committee Vote: Yeas 7, Nays 4. SB 331—LS 7001/DI 120