*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
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(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
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(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