*ES0331.1* February 17, 2022 ENGROSSED SENATE BILL No. 331 _____ DIGEST OF SB 331 (Updated February 16, 2022 1:28 pm - DI 116) Citations Affected: IC 20-28; IC 20-51.4. Synopsis: Education matters. Provides that, for purposes of determining the funding floor for teachers of a school corporation, the amount a school corporation expends for full-time teacher salaries shall include the amount the school corporation expends for participating in a special education cooperative or a career and technical education cooperative that is directly attributable to the salaries of full-time teachers employed by the cooperative, as determined by the department of education (department). Requires the department to annually report to the legislative council and the 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 (Continued next page) Effective: Upon passage; July 1, 2022. Buchanan, Raatz, Crane, Kruse (HOUSE SPONSOR — BEHNING) 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. January 31, 2022, read second time, amended, ordered engrossed. February 1, 2022, engrossed. Read third time, passed. Yeas 37, nays 12. HOUSE ACTION February 8, 2022, read first time and referred to Committee on Education. February 17, 2022, amended, reported — Do Pass. Referred to Committee on Ways and Means pursuant to Rule 127. ES 331—LS 7001/DI 120 Digest Continued 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 changes to the definition of "qualified school". Requires an eligible student with a disability to choose in the application process whether the eligible student will receive special education services from: (1) the school corporation required to provide the special education services to the eligible student; or (2) a qualified school that provides the necessary special education or related services to the eligible student. Specifies the annual grant amount calculation for an eligible student based on the eligible student's application choice. 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 certain online services and capabilities. (2) Require certain participating entities to post a surety bond or provide the treasurer of state information regarding unencumbered assets. Makes technical corrections. ES 331—LS 7001/DI 120ES 331—LS 7001/DI 120 February 17, 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. ENGROSSED 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 20-28-9-27, AS ADDED BY P.L.165-2021, 2 SECTION 155, IS AMENDED TO READ AS FOLLOWS 3 [EFFECTIVE JULY 1, 2022]: Sec. 27. (a) As used in this section, 4 "funding floor" means the amount a school corporation expended for 5 full-time teacher salaries during a particular state fiscal year. 6 (b) Subject to subsections (c) (d) and (d), (e), if the amount of state 7 tuition support distributed to a school corporation for a particular state 8 fiscal year is greater than the amount of state tuition support distributed 9 to the school corporation for the preceding state fiscal year, the school 10 corporation may not expend an amount for full-time teacher salaries 11 during the particular state fiscal year that is less than the funding floor 12 for the preceding state fiscal year. 13 (c) For purposes of this section, the amount a school corporation 14 expends for full-time teacher salaries shall include the amount the 15 school corporation expends for participating in a special education 16 cooperative or a career and technical education cooperative that ES 331—LS 7001/DI 120 2 1 is directly attributable to the salaries of full-time teachers 2 employed by the cooperative, as determined by the department. 3 (c) (d) For purposes of this subsection, stipends paid using teacher 4 appreciation grants under IC 20-43-10-3.5 are not considered. If a 5 school corporation has awarded stipends to a majority of the school 6 corporation's teachers in each of the two (2) preceding consecutive 7 state fiscal years, an amount equal to the lesser of the total amount of 8 stipends awarded in each of those state fiscal years shall be added to 9 the school corporation's funding floor for the preceding state fiscal year 10 described under subsection (b). 11 (d) (e) A school corporation may apply for a waiver from the 12 department of the prohibition under subsection (b). The department 13 may grant a waiver to a school corporation if the school corporation's 14 enrollment for the school year during that particular state fiscal year is 15 less than the enrollment in the school year during the preceding state 16 fiscal year. 17 SECTION 2. IC 20-28-9-28, AS ADDED BY P.L.165-2021, 18 SECTION 156, IS AMENDED TO READ AS FOLLOWS 19 [EFFECTIVE JULY 1, 2022]: Sec. 28. (a) For each school year in a 20 state fiscal year beginning after June 30, 2021, a school corporation 21 shall expend an amount for full-time teacher salaries that is not less 22 than an amount equal to forty-five percent (45%) of the state tuition 23 support distributed to the school corporation during the state fiscal year. For purposes of determining whether a school corporation24 has complied with this requirement, the amount a school25 corporation expends for full-time teacher salaries shall include the26 amount the school corporation expends for participating in a27 special education cooperative or a career and technical education28 cooperative that is directly attributable to the salaries of full-time29 teachers employed by the cooperative, as determined by the30 department.31 32 (b) If a school corporation determines that the school corporation 33 cannot comply with the requirement under subsection (a) for a 34 particular school year, the school corporation shall apply for a waiver 35 from the department. 36 (c) The waiver application must include an explanation of the 37 financial challenges, with detailed data, that preclude the school 38 corporation from meeting the requirement under subsection (a) and 39 describe the cost saving measures taken by the school corporation in 40 attempting to meet the requirement in subsection (a). The waiver may 41 also include an explanation of an innovative or efficient approach in 42 delivering instruction that is responsible for the school corporation ES 331—LS 7001/DI 120 3 1 being unable to meet the requirement under subsection (a). 2 (d) If, after review, the department determines that the school 3 corporation has exhausted all reasonable efforts in attempting to meet 4 the requirement in subsection (a), the department may grant the school 5 corporation a one (1) year exception from the requirement. 6 (e) A school corporation that receives a waiver under this section 7 shall work with the department to develop a plan to identify additional 8 cost saving measures and any other steps that may be taken to allow the 9 school corporation to meet the requirement under subsection (a). 10 (f) A school corporation may not receive more than three (3) 11 waivers under this section. 12 (g) Before November 1, 2022, and before November 1 of each 13 year thereafter, the department shall submit a report to the 14 legislative council in an electronic format under IC 5-14-6 and the 15 budget committee that contains information as to: 16 (1) the percent and amount that each school corporation 17 expended and the statewide total expended for full-time 18 teacher salaries; 19 (2) the percent and amount that each school corporation 20 expended and statewide total expended for full-time teacher 21 benefits, including health, dental, life insurance, and pension 22 benefits; 23 (3) whether the school corporation met the requirement set 24 forth in subsection (a); and 25 (4) whether the school corporation received a waiver under 26 subsection (d). 27 SECTION 3. IC 20-51.4-2-10, AS ADDED BY P.L.165-2021, 28 SECTION 180, IS AMENDED TO READ AS FOLLOWS 29 [EFFECTIVE UPON PASSAGE]: Sec. 10. "Qualified school" refers to 30 a nonpublic school accredited by either the state board or a national or 31 regional accreditation agency that is recognized by the state board: 32 (1) to which an eligible student is required to pay tuition to attend; 33 and 34 (2) that agrees to enroll an eligible student. public or nonpublic 35 elementary school or high school that: 36 (1) is located in Indiana; 37 (2) requires an eligible student to pay tuition or transfer 38 tuition to attend; 39 (3) voluntarily agrees to enroll an eligible student; 40 (4) is accredited by either the state board or a national or 41 regional accreditation agency that is recognized by the state 42 board; ES 331—LS 7001/DI 120 4 1 (5) administers the statewide assessment program; 2 (6) is not a charter school or the school corporation in which 3 an eligible student has legal settlement under IC 20-26-11; 4 and 5 (7) submits to the department only the student performance 6 data required for a category designation under IC 20-31-8-3. 7 SECTION 4. IC 20-51.4-3-5, AS ADDED BY P.L.165-2021, 8 SECTION 180, IS AMENDED TO READ AS FOLLOWS 9 [EFFECTIVE UPON PASSAGE]: Sec. 5. The treasurer of state shall 10 provide online services and capabilities including, but not limited to, 11 the following: 12 (1) A method for parents to submit an application agreement 13 described in IC 20-51.4-4-1(a). 14 (2) A method for a participating entity to submit the intent of the 15 participating entity to participate in the program. 16 (3) A method for parents to identify and select participating 17 entities participating in the program. 18 (4) A method for parents and participating entities to initiate and 19 receive payments from an eligible student's account. 20 (5) A method for parents to rate the parent's experience with a 21 participating entity and the ability for other parents of eligible 22 students to see the rating. 23 (6) Methods that are intuitive and allow for contributions to be 24 easily made to an eligible student's account. 25 (7) (5) Resources the family of an eligible student can access to 26 learn about advocacy groups available to provide information and 27 resources to the eligible student's family. 28 SECTION 5. IC 20-51.4-3-7, AS ADDED BY P.L.165-2021, 29 SECTION 180, IS AMENDED TO READ AS FOLLOWS 30 [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) For each school year, the 31 treasurer of state shall determine, based on the amount of funds 32 available for the program, the number of grants that the treasurer of 33 state will award under the program. The number of applications 34 approved and the number of grants awarded under this article by the 35 treasurer of state for the school year may not exceed the number 36 determined by the treasurer of state under this section. 37 (b) The treasurer of state may deduct the following amounts 38 from the funds made available for the program to cover costs of 39 managing accounts and administering the program: 40 (1) For the first year of the program, not more than ten 41 percent (10%) of the funds made available to cover the costs 42 described in this subsection. ES 331—LS 7001/DI 120 5 1 (2) For each year thereafter, not more than five percent (5%) 2 of the funds made available to cover the costs described in this 3 subsection. 4 Any amount deducted under this subsection shall be deposited in 5 the Indiana education scholarship account administration fund 6 established by IC 20-51.4-4-3.5. 7 SECTION 6. IC 20-51.4-4-1, AS AMENDED BY THE 8 TECHNICAL CORRECTIONS BILL OF THE 2022 GENERAL 9 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 10 UPON PASSAGE]: Sec. 1. (a) After June 30, 2022, a parent of an 11 eligible student or an emancipated eligible student may establish an 12 Indiana education scholarship account for the eligible student by 13 entering into a written agreement with the treasurer of state on a form 14 prepared by the treasurer of state. The treasurer of state shall establish 15 a date by which an application to establish an account for the 16 2022-2023 upcoming school year must be submitted. However, for a 17 school year beginning after July 1, 2022, applications must be 18 submitted for an eligible student not later than April 1 September 1 for 19 the immediately following school year. The account of an eligible 20 student shall be made in the name of the eligible student. The treasurer 21 of state shall make the agreement available on the Internet web site of 22 the treasurer of state. To be eligible, a parent of an eligible student or 23 an emancipated eligible student wishing to participate in the program 24 must agree that: 25 (1) a grant deposited in the eligible student's account under 26 section 2 of this chapter and any interest that may accrue in the 27 account will be used only for the eligible student's qualified 28 expenses; 29 (2) money in the account when the account is terminated reverts 30 to the state general fund; 31 (3) the parent of the eligible student or the emancipated eligible 32 student will use part of the money in the account: 33 (A) for the eligible student's study in: 34 (i) the subject of reading, grammar, mathematics, social 35 studies, or science; or 36 (ii) any combination of the subjects listed in item (i); or 37 (B) for use in accordance with the eligible student's: 38 (i) individualized education program developed under 39 IC 20-35; 40 (ii) service plan developed under 511 IAC 7-34; 41 (iii) choice special education plan developed under 511 42 IAC 7-49; or ES 331—LS 7001/DI 120 6 1 (iv) Indiana education scholarship account education 2 service plan; or 3 (iv) (v) plan developed under Section 504 of the federal 4 Rehabilitation Act of 1973, 29 U.S.C. 794; 5 (4) the eligible student will not be enrolled in a school that 6 receives tuition support under IC 20-43; and 7 (5) the eligible student will take the statewide assessment, as 8 applicable based on the eligible student's grade level, as provided 9 under IC 20-32-5.1, or the assessment specified in the eligible 10 student's: 11 (A) individualized education program developed under 12 IC 20-35; 13 (B) service plan developed under 511 IAC 7-34; 14 (C) choice special education plan developed under 511 15 IAC 7-49; or 16 (D) Indiana education scholarship account education 17 service plan; or 18 (D) (E) plan developed under Section 504 of the federal 19 Rehabilitation Act of 1973, 29 U.S.C. 794. 20 (b) A parent of an eligible student may enter into a separate 21 agreement under subsection (a) for each child of the parent. However, 22 not more than one (1) account may be established for each eligible 23 student. 24 (c) The account must be established under subsection (a) by a parent 25 of an eligible student or an emancipated eligible student for a school 26 year on or before a date established by the treasurer of state, which 27 must be at least thirty (30) days before the fall ADM count date 28 established by the state board under IC 20-43-4-3. A parent of an 29 eligible student or an emancipated eligible student may not enter into 30 an agreement under this section or maintain an account under this 31 chapter if the eligible student receives a choice scholarship under 32 IC 20-51-4 for the same school year. An eligible student may not 33 receive a grant under section 2 of this chapter if the eligible student is 34 currently included in a school corporation's ADM count under 35 IC 20-43-4. If a student is enrolled in a public school during the 36 same school year in which the student has been deemed eligible for 37 an account under this chapter: 38 (1) the student shall be deemed ineligible for application or 39 renewal; 40 (2) the student shall not receive a grant under section 2 of this 41 chapter; and 42 (3) any accounts in the student's name shall be immediately ES 331—LS 7001/DI 120 7 1 terminated. 2 (d) Except as provided in subsections (e) and (f), an agreement 3 made under this section is valid for one (1) school year while the 4 eligible student is in kindergarten through grade 12 and may be 5 renewed annually. Upon graduation, or receipt of a certificate of 6 completion under the eligible student's individualized education 7 program, the eligible student's account is terminated. 8 (e) An agreement entered into under this section terminates 9 automatically for an eligible student if: 10 (1) the eligible student no longer resides in Indiana while the 11 eligible student is eligible to receive grants under section 2 of this 12 chapter; or 13 (2) the account is not renewed within three hundred ninety-five 14 (395) days after the date the account was either established or last 15 renewed. 16 If an account is terminated under this section, money in the eligible 17 student's account, including any interest accrued, reverts to the state 18 general fund. 19 (f) An agreement made under this section for an eligible student 20 while the eligible student is in kindergarten through grade 12 may be 21 terminated before the end of the school year if the parent of the eligible 22 student or the emancipated eligible student notifies the treasurer of 23 state in a manner specified by the treasurer of state. 24 (g) A distribution made to an account under section 3 section 2 of 25 this chapter is considered tax exempt as long as the distribution is used 26 for a qualified expense. The amount is subtracted from the definition 27 of adjusted federal gross income under IC 6-3-1-3.5 to the extent the 28 distribution used for the qualified expense is included in the taxpayer's 29 adjusted federal gross income under the Internal Revenue Code. 30 (h) The department shall establish a student test number as 31 described in IC 20-19-3-9.4 for each eligible student. The treasurer of 32 state shall provide the department information necessary for the 33 department to comply with this subsection. 34 SECTION 7. IC 20-51.4-4-2, AS ADDED BY P.L.165-2021, 35 SECTION 180, IS AMENDED TO READ AS FOLLOWS 36 [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) An eligible student who 37 currently maintains an account is entitled to an annual grant amount for 38 each school year until the student graduates or obtains a certificate of 39 completion under the student's individualized education program. An 40 eligible student may not receive a grant under this section after 41 graduating or obtaining a certificate of completion. The annual grant 42 amount shall be paid from the fund. The treasurer of state, with notice ES 331—LS 7001/DI 120 8 1 to the department, shall deposit the annual grant amount under this 2 section, in quarterly deposits, into an eligible student's account in a 3 manner established by the treasurer of state. The treasurer of state may 4 deduct an amount of not more than three percent (3%) from each 5 quarterly distribution to accounts under this article to cover the costs 6 of managing the accounts and administering the program. 7 (b) Except as provided in subsection (c), at the end of the year in 8 which an account is established, the parent of an eligible student or the 9 emancipated eligible student may roll over for use in a subsequent year 10 a maximum of one thousand dollars ($1,000). However, for each year 11 thereafter, the parent of the eligible student or the emancipated eligible 12 student may roll over one thousand dollars ($1,000) plus any amount 13 rolled over in a previous year. 14 (c) An eligible student's account shall terminate the later of: 15 (1) the date the student graduates high school; or 16 (2) July 1 of the year in the year which the student graduates high 17 school. 18 Any money, including interest that remains in the eligible student's 19 account when it terminates under this subsection reverts to the state 20 general fund. 21 SECTION 8. IC 20-51.4-4-3, AS ADDED BY P.L.165-2021, 22 SECTION 180, IS AMENDED TO READ AS FOLLOWS 23 [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The Indiana education 24 scholarship account program fund is established for the purpose of 25 providing grants to eligible students under the program. Money 26 appropriated to the fund during the state fiscal year beginning July 1, 27 2021, and ending June 30, 2022, may only be used for the 28 administrative costs to establish the program. However, money 29 appropriated to the fund during the state fiscal year beginning July 1, 30 2022, and ending June 30, 2023, may be used to provide grants under 31 this chapter in the manner prescribed in section 2 of this chapter. 32 (b) The treasurer of state shall administer the fund. 33 (c) The fund consists of the following: 34 (1) Appropriations by the general assembly. 35 (2) Interest deposited in the fund under subsection (d). 36 (3) Donations, gifts, and money received from any other source, 37 including transfers from other funds or accounts. 38 (3) Amounts transferred to the fund from the Indiana 39 education scholarship account administration fund under 40 section 3.5(e) of this chapter. 41 (d) The treasurer of state shall invest money in the fund not 42 currently needed to meet the obligations of the fund in the same ES 331—LS 7001/DI 120 9 1 manner as other public money may be invested. Interest that accrues 2 from these investments shall be deposited in the fund. 3 (e) Money in the fund at the end of a state fiscal year reverts to the 4 state general fund. 5 SECTION 9. IC 20-51.4-4-3.5 IS ADDED TO THE INDIANA 6 CODE AS A NEW SECTION TO READ AS FOLLOWS 7 [EFFECTIVE UPON PASSAGE]: Sec. 3.5. (a) The Indiana education 8 scholarship account administration fund is established for the 9 purpose of accepting money for the Indiana education scholarship 10 account program to support administration of the program. 11 (b) The treasurer of state shall administer the fund. 12 (c) The fund consists of the following: 13 (1) Administration fees deposited in the fund under 14 IC 20-51.4-3-7(b). 15 (2) Donations, gifts, and money received from any other 16 source, including transfers from other funds or accounts. 17 (3) Interest deposited in the fund under subsection (d). 18 (d) The treasurer of state shall invest money in the fund not 19 currently needed to meet the obligations of the fund in the same 20 manner as other public money may be invested. Interest that 21 accrues from these investments shall be deposited in the fund. 22 (e) The treasurer of state may transfer any funds held in the 23 fund to the Indiana education scholarship account program fund 24 established by section 3 of this chapter at any time for the purpose 25 of that fund. 26 SECTION 10. IC 20-51.4-4-4, AS ADDED BY P.L.165-2021, 27 SECTION 180, IS AMENDED TO READ AS FOLLOWS 28 [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Subject to sections 5 and 29 10 of this chapter, the annual grant amount under section 2 of this 30 chapter for an eligible student equals, subject to subsection (b), (d), 31 ninety percent (90%) of the amount determined in the last STEP of the 32 following formula: 33 STEP ONE: Determine the school corporation in which the 34 eligible student has legal settlement. 35 STEP TWO: Determine the amount of state tuition support that 36 the school corporation identified under STEP ONE is eligible to 37 receive under IC 20-43-6 for the state fiscal year in which the 38 immediately preceding school year begins. The amount does not 39 include amounts provided for special education grants under 40 IC 20-43-7, career and technical education grants under 41 IC 20-43-8, or grants under IC 20-43-10. 42 STEP THREE: Determine the result of: ES 331—LS 7001/DI 120 10 1 (A) the STEP TWO amount; divided by 2 (B) the current ADM (as defined in IC 20-43-1-10) for the 3 school corporation identified under STEP ONE for the state 4 fiscal year used in STEP TWO. 5 (b) An eligible student may choose to receive special education 6 services from the school corporation required to provide the special 7 education services to the eligible student under 511 IAC 7-34-1. 8 However, if an eligible student described in subsection (a) chooses not 9 to receive special education or related services from a school 10 corporation required to provide the services to the eligible student 11 under 511 IAC 7-34-1, the annual grant amount for the eligible student 12 shall, in addition to the amount described in subsection (a), include the 13 amount the school corporation would receive under IC 20-43-7 for the 14 eligible student if the eligible student attended the school corporation. 15 (b) If an eligible student enrolls in a qualified school, the grant 16 calculated under subsection (a) shall be used to pay tuition and fees 17 at that school prior to use of the grant for other qualified expenses, 18 unless the eligible student and the school agree in writing to pay for 19 tuition and fees by a different means. If the eligible student and the 20 school enter into a written agreement under this subsection, the 21 agreement must be submitted to the treasurer of state prior to 22 disbursement of grants to the accounts. 23 (c) An eligible student with a disability shall at the time of 24 application for an account make a choice as part of the application 25 to receive special education services from: 26 (1) the school corporation required to provide the special 27 education services to the eligible student under 511 IAC 7-34; 28 or 29 (2) a qualified school that provides the necessary special 30 education or related services to the eligible student. 31 (d) The following apply: 32 (1) If an eligible student chooses not to receive special 33 education or related services from a school corporation 34 required to provide the services to the eligible student under 35 511 IAC 7-34 or a qualified school under subsection (c)(2), the 36 annual grant amount for the eligible student shall, in addition 37 to the amount described in subsection (a), include the amount 38 the school corporation would receive under IC 20-43-7 for the 39 eligible student if the eligible student attended the school 40 corporation. 41 (2) If an eligible student chooses to receive special education 42 or related services from a school corporation required to ES 331—LS 7001/DI 120 11 1 provide the services to the eligible student under 511 IAC 7-34 2 or a qualified school under subsection (c)(2), the treasurer of 3 state shall transfer directly to the school corporation or 4 qualified school chosen under subsection (c) the full amount 5 of the special education grant for the eligible student under 6 IC 20-43-7. 7 (c) (e) The annual grant amounts provided in subsection (a) shall be 8 rounded as provided in IC 20-43-3-1(4). 9 SECTION 11. IC 20-51.4-4-5, AS ADDED BY P.L.165-2021, 10 SECTION 180, IS AMENDED TO READ AS FOLLOWS 11 [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) If an eligible student's 12 agreement under section 1 of this chapter is in effect for less than an 13 entire school year, the annual grant amount provided under section 2 14 of this chapter for that school year shall be reduced on a prorated basis 15 in a manner prescribed by the treasurer of state to reflect the length of 16 the agreement. 17 (b) In the event If an eligible student's account is terminated 18 because the eligible student enrolls in a school that receives tuition 19 support under IC 20-43, is included in a public school's ADM count 20 under IC 20-43-4, the balance in the account at the time the account 21 is terminated shall be transferred to the school corporation or charter 22 school in which the eligible student enrolls. 23 (c) In the event If that special education grant funding under section 24 4(b) 4(d) of this chapter has been deposited into the eligible student's 25 account but the eligible student subsequently begins receiving special 26 education services from a school that receives funding under IC 20-43, 27 the balance in the account up to the amount deposited under section 28 4(b) 4(d) of this chapter shall be transferred to the school corporation 29 or charter school that provides the special education services to the 30 student. 31 SECTION 12. IC 20-51.4-4-8, AS ADDED BY P.L.165-2021, 32 SECTION 180, IS AMENDED TO READ AS FOLLOWS 33 [EFFECTIVE UPON PASSAGE]: Sec. 8. This chapter does not 34 prohibit a parent of an eligible student or an emancipated eligible 35 student from making a payment for any qualified expense from a 36 source other than the eligible student's account. The parent of an 37 eligible student or an emancipated eligible student is responsible for 38 the payment of any qualified expense, including tuition and fees 39 required by a qualified school that is not paid from the eligible student's 40 account. 41 SECTION 13. IC 20-51.4-5-2, AS ADDED BY P.L.165-2021, 42 SECTION 180, IS AMENDED TO READ AS FOLLOWS ES 331—LS 7001/DI 120 12 1 [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The following individuals 2 or entities may become a participating entity by submitting an 3 application to the treasurer of state in a manner prescribed by the 4 treasurer of state: 5 (1) A qualified school. 6 (2) An individual who or tutoring agency that provides private 7 tutoring. 8 (3) An individual who or entity that provides services to a student 9 with a disability in accordance with an individualized education 10 program developed under IC 20-35 or a service plan developed 11 under 511 IAC 7-34 or generally accepted standards of care 12 prescribed by the eligible student's treating physician. 13 (4) An individual who or entity that offers a course or program to 14 an eligible student. 15 (5) A licensed occupational physician, therapist, or other 16 provider who: 17 (A) is licensed or certified by a state agency (as defined in 18 IC 4-13.1-1-4); and 19 (B) provides educational services to an eligible student 20 with a disability within the scope of the provider's license 21 or certification. 22 (6) Entities that provide assessments. 23 (b) The treasurer of state shall approve an application submitted 24 under subsection (a) if the individual or entity meets the criteria to 25 serve as a participating entity. 26 (c) If it is reasonably expected by the treasurer of state that a 27 participating entity will receive, from payments made under the 28 program, more than fifty thousand dollars ($50,000) during a particular 29 school year, the participating entity shall, on or before a date prescribed 30 by the treasurer of state: 31 (1) post a surety bond in an amount equal to the amount expected 32 to be paid to the participating entity under the program for the 33 particular school year; or 34 (2) provide the treasurer of state evidence, in a manner prescribed 35 by the treasurer of state, indicating that the participating entity has 36 unencumbered assets sufficient to pay the treasurer of state an 37 amount equal to the amount expected to be paid to the 38 participating entity under the program during the particular school 39 year. 40 (d) (c) Each participating entity that accepts payments made from 41 an account under this article shall provide a receipt to the parent of an 42 eligible student or to the emancipated eligible student for each payment ES 331—LS 7001/DI 120 13 1 made. 2 SECTION 14. IC 20-51.4-5-5, AS ADDED BY P.L.165-2021, 3 SECTION 180, IS AMENDED TO READ AS FOLLOWS 4 [EFFECTIVE UPON PASSAGE]: Sec. 5. An approved participating 5 entity: 6 (1) may not charge an eligible student participating in the 7 program an amount greater than a similarly situated student who 8 is receiving the same or similar services; and 9 (2) shall provide a receipt to a parent of an eligible student or an 10 emancipated eligible student for each qualified expense charged 11 for education or related services provided to the eligible student; 12 and 13 (3) may not count a grant received by an eligible student 14 under this chapter for any purpose regarding the calculation 15 of tuition, fees, scholarships, or any other financial aid. 16 SECTION 15. An emergency is declared for this act. ES 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 ES 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 ES 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 ES 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: ES 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 ES 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. _____ 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 ES 331—LS 7001/DI 120 20 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: ES 331—LS 7001/DI 120 21 (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 ES 331—LS 7001/DI 120 22 (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 ES 331—LS 7001/DI 120 23 (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. ES 331—LS 7001/DI 120 24 SENATE MOTION Madam President: I move that Senate Bill 331 be amended to read as follows: Page 5, between lines 19 and 20, begin a new paragraph and insert: "SECTION 4. IC 20-51.4-4-2, AS ADDED BY P.L.165-2021, SECTION 180, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) An eligible student who currently maintains an account is entitled to an annual grant amount for each school year until the student graduates or obtains a certificate of completion under the student's individualized education program. An eligible student may not receive a grant under this section after graduating or obtaining a certificate of completion. The annual grant amount shall be paid from the fund. The treasurer of state, with notice to the department, shall deposit the annual grant amount under this section, in quarterly deposits, into an eligible student's account in a manner established by the treasurer of state. The treasurer of state may deduct an amount of not more than three percent (3%) from each quarterly distribution to accounts under this article to cover the costs of managing the accounts and administering the program. (b) Except as provided in subsection (c), at the end of the year in which an account is established, the parent of an eligible student or the emancipated eligible student may roll over for use in a subsequent year a maximum of one thousand dollars ($1,000). However, for each year thereafter, the parent of the eligible student or the emancipated eligible student may roll over one thousand dollars ($1,000) plus any amount rolled over in a previous year. (c) An eligible student's account shall terminate the later of: (1) the date the student graduates high school; or (2) July 1 of the year in the year which the student graduates high school. Any money, including interest that remains in the eligible student's account when it terminates under this subsection reverts to the state general fund.". Renumber all SECTIONS consecutively. (Reference is to SB 331 as printed January 28, 2022.) MISHLER ES 331—LS 7001/DI 120 25 COMMITTEE REPORT Mr. Speaker: Your Committee on Education, to which was referred Senate Bill 331, has had the same under consideration and begs leave to report the same back to the House 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 20-28-9-27, AS ADDED BY P.L.165-2021, SECTION 155, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 27. (a) As used in this section, "funding floor" means the amount a school corporation expended for full-time teacher salaries during a particular state fiscal year. (b) Subject to subsections (c) (d) and (d), (e), if the amount of state tuition support distributed to a school corporation for a particular state fiscal year is greater than the amount of state tuition support distributed to the school corporation for the preceding state fiscal year, the school corporation may not expend an amount for full-time teacher salaries during the particular state fiscal year that is less than the funding floor for the preceding state fiscal year. (c) For purposes of this section, the amount a school corporation expends for full-time teacher salaries shall include the amount the school corporation expends for participating in a special education cooperative or a career and technical education cooperative that is directly attributable to the salaries of full-time teachers employed by the cooperative, as determined by the department. (c) (d) For purposes of this subsection, stipends paid using teacher appreciation grants under IC 20-43-10-3.5 are not considered. If a school corporation has awarded stipends to a majority of the school corporation's teachers in each of the two (2) preceding consecutive state fiscal years, an amount equal to the lesser of the total amount of stipends awarded in each of those state fiscal years shall be added to the school corporation's funding floor for the preceding state fiscal year described under subsection (b). (d) (e) A school corporation may apply for a waiver from the department of the prohibition under subsection (b). The department may grant a waiver to a school corporation if the school corporation's enrollment for the school year during that particular state fiscal year is less than the enrollment in the school year during the preceding state fiscal year.". Page 1, line 8, after "year." insert "For purposes of determining whether a school corporation has complied with this requirement, ES 331—LS 7001/DI 120 26 the amount a school corporation expends for full-time teacher salaries shall include the amount the school corporation expends for participating in a special education cooperative or a career and technical education cooperative that is directly attributable to the salaries of full-time teachers employed by the cooperative, as determined by the department.". Page 2, line 17, delete "state". Page 2, between lines 28 and 29, begin a new paragraph and insert: "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 data required for a category designation under IC 20-31-8-3. SECTION 3. 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 ES 331—LS 7001/DI 120 27 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 3, delete lines 8 through 42, begin a new paragraph and insert: "SECTION 4. 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: (i) the subject of reading, grammar, mathematics, social studies, or science; or (ii) any combination of the subjects listed in item (i); or (B) for use in accordance with the eligible student's: (i) individualized education program developed under ES 331—LS 7001/DI 120 28 IC 20-35; (ii) service plan developed under 511 IAC 7-34; (iii) choice special education plan developed under 511 IAC 7-49; or (iv) Indiana education scholarship account education service plan; or (iv) (v) 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) Indiana education scholarship account education service plan; or (D) (E) 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. If a student is enrolled in a public school during the same school year in which the student has been deemed eligible for an account under this chapter: (1) the student shall be deemed ineligible for application or ES 331—LS 7001/DI 120 29 renewal; (2) the student shall not receive a grant under section 2 of this chapter; and (3) any accounts in the student's name shall be immediately terminated. (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 (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 page 4. Page 5, delete lines 1 through 19. Page 6, strike lines 22 through 23. Page 6, line 24, delete "(4)" and insert "(3)". Page 7, between lines 11 and 12, begin a new paragraph and insert: ES 331—LS 7001/DI 120 30 "SECTION 10. IC 20-51.4-4-4, AS ADDED BY P.L.165-2021, SECTION 180, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Subject to sections 5 and 10 of this chapter, the annual grant amount under section 2 of this chapter for an eligible student equals, subject to subsection (b), (d), ninety percent (90%) of the amount determined in the last STEP of the following formula: STEP ONE: Determine the school corporation in which the eligible student has legal settlement. STEP TWO: Determine the amount of state tuition support that the school corporation identified under STEP ONE is eligible to receive under IC 20-43-6 for the state fiscal year in which the immediately preceding school year begins. The amount does not include amounts provided for special education grants under IC 20-43-7, career and technical education grants under IC 20-43-8, or grants under IC 20-43-10. STEP THREE: Determine the result of: (A) the STEP TWO amount; divided by (B) the current ADM (as defined in IC 20-43-1-10) for the school corporation identified under STEP ONE for the state fiscal year used in STEP TWO. (b) An eligible student may choose to receive special education services from the school corporation required to provide the special education services to the eligible student under 511 IAC 7-34-1. However, if an eligible student described in subsection (a) chooses not to receive special education or related services from a school corporation required to provide the services to the eligible student under 511 IAC 7-34-1, the annual grant amount for the eligible student shall, in addition to the amount described in subsection (a), include the amount the school corporation would receive under IC 20-43-7 for the eligible student if the eligible student attended the school corporation. (b) If an eligible student enrolls in a qualified school, the grant calculated under subsection (a) shall be used to pay tuition and fees at that school prior to use of the grant for other qualified expenses, unless the eligible student and the school agree in writing to pay for tuition and fees by a different means. If the eligible student and the school enter into a written agreement under this subsection, the agreement must be submitted to the treasurer of state prior to disbursement of grants to the accounts. (c) An eligible student with a disability shall at the time of application for an account make a choice as part of the application to receive special education services from: ES 331—LS 7001/DI 120 31 (1) the school corporation required to provide the special education services to the eligible student under 511 IAC 7-34; or (2) a qualified school that provides the necessary special education or related services to the eligible student. (d) The following apply: (1) If an eligible student chooses not to receive special education or related services from a school corporation required to provide the services to the eligible student under 511 IAC 7-34 or a qualified school under subsection (c)(2), the annual grant amount for the eligible student shall, in addition to the amount described in subsection (a), include the amount the school corporation would receive under IC 20-43-7 for the eligible student if the eligible student attended the school corporation. (2) If an eligible student chooses to receive special education or related services from a school corporation required to provide the services to the eligible student under 511 IAC 7-34 or a qualified school under subsection (c)(2), the treasurer of state shall transfer directly to the school corporation or qualified school chosen under subsection (c) the full amount of the special education grant for the eligible student under IC 20-43-7. (c) (e) The annual grant amounts provided in subsection (a) shall be rounded as provided in IC 20-43-3-1(4). SECTION 11. IC 20-51.4-4-5, AS ADDED BY P.L.165-2021, SECTION 180, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) If an eligible student's agreement under section 1 of this chapter is in effect for less than an entire school year, the annual grant amount provided under section 2 of this chapter for that school year shall be reduced on a prorated basis in a manner prescribed by the treasurer of state to reflect the length of the agreement. (b) In the event If an eligible student's account is terminated because the eligible student enrolls in a school that receives tuition support under IC 20-43, is included in a public school's ADM count under IC 20-43-4, the balance in the account at the time the account is terminated shall be transferred to the school corporation or charter school in which the eligible student enrolls. (c) In the event If that special education grant funding under section 4(b) 4(d) of this chapter has been deposited into the eligible student's account but the eligible student subsequently begins receiving special ES 331—LS 7001/DI 120 32 education services from a school that receives funding under IC 20-43, the balance in the account up to the amount deposited under section 4(b) 4(d) of this chapter shall be transferred to the school corporation or charter school that provides the special education services to the student. SECTION 12. IC 20-51.4-4-8, AS ADDED BY P.L.165-2021, SECTION 180, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. This chapter does not prohibit a parent of an eligible student or an emancipated eligible student from making a payment for any qualified expense from a source other than the eligible student's account. The parent of an eligible student or an emancipated eligible student is responsible for the payment of any qualified expense, including tuition and fees required by a qualified school that is not paid from the eligible student's account. 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. ES 331—LS 7001/DI 120 33 (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 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. SECTION 14. IC 20-51.4-5-5, AS ADDED BY P.L.165-2021, SECTION 180, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. An approved participating entity: (1) may not charge an eligible student participating in the program an amount greater than a similarly situated student who is receiving the same or similar services; and (2) shall provide a receipt to a parent of an eligible student or an emancipated eligible student for each qualified expense charged for education or related services provided to the eligible student; and (3) may not count a grant received by an eligible student under this chapter for any purpose regarding the calculation of tuition, fees, scholarships, or any other financial aid.". Renumber all SECTIONS consecutively. and when so amended that said bill do pass. (Reference is to SB 331 as reprinted February 1, 2022.) BEHNING Committee Vote: yeas 9, nays 3. ES 331—LS 7001/DI 120