Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 331
AN ACT to amend the Indiana Code concerning education.
Be it enacted by the General Assembly of the State of Indiana:
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
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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.
SECTION 2. 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. For purposes of determining whether a school corporation
has complied with this requirement, 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.
(b) If a school corporation determines that the school corporation
cannot comply with the requirement under subsection (a) for a
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
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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).
SECTION 3. IC 20-51.4-3-7, AS ADDED BY P.L.165-2021,
SECTION 180, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 7. (a) For each school year, the
treasurer of state shall determine, based on the amount of funds
available for the program, the number of grants that the treasurer of
state will award under the program. The number of applications
approved and the number of grants awarded under this article by the
treasurer of state for the school year may not exceed the number
determined by the treasurer of state under this section.
(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:
(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
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established by IC 20-51.4-4-3.5.
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 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
(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:
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(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
(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
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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.
SECTION 5. 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.
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SECTION 6. IC 20-51.4-4-3, AS ADDED BY P.L.165-2021,
SECTION 180, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The Indiana education
scholarship account program fund is established for the purpose of
providing grants to eligible students under the program. Money
appropriated to the fund during the state fiscal year beginning July 1,
2021, and ending June 30, 2022, may only be used for the
administrative costs to establish the program. However, money
appropriated to the fund during the state fiscal year beginning July 1,
2022, and ending June 30, 2023, may be used to provide grants under
this chapter in the manner prescribed in section 2 of this chapter.
(b) The treasurer of state shall administer the fund.
(c) The fund consists of the following:
(1) Appropriations by the general assembly.
(2) Interest deposited in the fund under subsection (d).
(3) Donations, gifts, and money received from any other source,
including transfers from other funds or accounts.
(4) Amounts transferred to the fund from the Indiana
education scholarship account administration fund under
section 3.5(e) of this chapter.
(d) The treasurer of state shall invest money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that accrues
from these investments shall be deposited in the fund.
(e) Money in the fund at the end of a state fiscal year reverts to the
state general fund.
SECTION 7. IC 20-51.4-4-3.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3.5. (a) The Indiana education
scholarship account administration fund is established for the
purpose of accepting money for the Indiana education scholarship
account program to support administration of the program.
(b) The treasurer of state shall administer the fund.
(c) The fund consists of the following:
(1) Administration fees deposited in the fund under
IC 20-51.4-3-7(b).
(2) Donations, gifts, and money received from any other
source, including transfers from other funds or accounts.
(3) Interest deposited in the fund under subsection (d).
(d) The treasurer of state shall invest money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that
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accrues from these investments shall be deposited in the fund.
(e) The treasurer of state may transfer any funds held in the
fund to the Indiana education scholarship account program fund
established by section 3 of this chapter at any time for the purpose
of that fund.
SECTION 8. 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 therapist.
(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
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) Each participating entity that accepts payments made from an
account under this article shall provide a receipt to the parent of an
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eligible student or to the emancipated eligible student for each payment
made.
SECTION 9. An emergency is declared for this act.
SEA 331 — CC 1 President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
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