*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