Indiana 2022 Regular Session

Indiana Senate Bill SB0368 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 368
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 20-25.7-5-2; IC 20-43.
7	7	Synopsis: Complexity index within the school funding formula.
8	8	Requires, for state fiscal years beginning after June 30, 2023, the state
9	9	board of education to determine each school corporation's complexity
10	10	index two times each year. Provides that the complexity index count
11	11	dates coincide with the average daily membership count days. Allows
12	12	a school corporation to request an adjustment to the school
13	13	corporation's complexity index. Provides a maximum amount of money
14	14	attributable to complexity index calculations that may be distributed for
15	15	all school corporations in a particular state fiscal year.
16	16	Effective: July 1, 2022.
17	17	Ford J.D.
18	18	January 11, 2022, read first time and referred to Committee on Appropriations.
19	19	2022 IN 368—LS 6808/DI 125 Introduced
20	20	Second Regular Session of the 122nd General Assembly (2022)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2021 Regular Session of the General Assembly.
30	30	SENATE BILL No. 368
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	education.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 20-25.7-5-2, AS AMENDED BY P.L.165-2021,
35	35	2 SECTION 153, IS AMENDED TO READ AS FOLLOWS
36	36	3 [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) The board may enter into an
37	37	4 agreement with an organizer to reconstitute an eligible school as a
38	38	5 participating innovation network charter school or to establish a
39	39	6 participating innovation network charter school at a location selected
40	40	7 by the board within the boundary of the school corporation.
41	41	8 Notwithstanding IC 20-26-7.1, a participating innovation network
42	42	9 charter school may be established within a vacant school building.
43	43	10 (b) The terms of the agreement entered into between the board and
44	44	11 an organizer must specify the following:
45	45	12 (1) A statement that the organizer authorizes the department to
46	46	13 include the charter school's performance assessment results under
47	47	14 IC 20-31-8 when calculating the school corporation's performance
48	48	15 assessment under rules adopted by the state board.
49	49	16 (2) The amount of state funding, including tuition support (if the
50	50	17 participating innovation network charter school is treated in the
51	51	2022 IN 368—LS 6808/DI 125 2
52	52	1 same manner as a school operated by the school corporation
53	53	2 under subsection (d)(2)), and money levied as property taxes that
54	54	3 will be distributed by the school corporation to the organizer.
55	55	4 (3) The performance goals and accountability metrics agreed
56	56	5 upon for the charter school in the charter agreement between the
57	57	6 organizer and the authorizer.
58	58	7 (c) If an organizer and the board enter into an agreement under
59	59	8 subsection (a), the organizer and the board shall notify the department
60	60	9 that the agreement has been made under this section within thirty (30)
61	61	10 days after the agreement is entered into.
62	62	11 (d) Upon receipt of the notification under subsection (c), for school
63	63	12 years starting after the date of the agreement:
64	64	13 (1) the department shall include the participating innovation
65	65	14 network charter school's performance assessment results under
66	66	15 IC 20-31-8 when calculating the school corporation's performance
67	67	16 assessment under rules adopted by the state board;
68	68	17 (2) the department shall treat the participating innovation network
69	69	18 charter school in the same manner as a school operated by the
70	70	19 school corporation when calculating the total amount of state
71	71	20 funding to be distributed to the school corporation unless
72	72	21 subsection (e) applies; and
73	73	22 (3) if requested by a participating innovation network charter
74	74	23 school that reconstitutes an eligible school, the department may
75	75	24 use student growth as the state board's exclusive means to
76	76	25 determine the innovation network charter school's category or
77	77	26 designation of school improvement under 511 IAC 6.2-10-10 for
78	78	27 a period of three (3) years. Beginning with the 2019-2020 school
79	79	28 year, the department may not use student growth as the state
80	80	29 board's exclusive means to determine an innovation network
81	81	30 charter school's category or designation of school improvement.
82	82	31 This subdivision expires July 1, 2023.
83	83	32 (e) If a participating innovation network school was established
84	84	33 before January 1, 2016, and for the current school year has a
85	85	34 complexity index that is greater than the complexity index for the
86	86	35 school corporation that the innovation network school has contracted
87	87	36 with, the innovation network school shall be treated as a charter school
88	88	37 for purposes of determining tuition support. This subsection expires
89	89	38 June 30, 2023.
90	90	39 (f) This subsection applies for state fiscal years beginning after
91	91	40 June 30, 2023. If a determination of the complexity index of a
92	92	41 participating innovation network charter school that was
93	93	42 established before January 1, 2016, is, for either of the
94	94	2022 IN 368—LS 6808/DI 125 3
95	95	1 determinations made in the current school year, greater than the
96	96	2 determination of the complexity index for the school corporation
97	97	3 with which the innovation network charter school has contracted,
98	98	4 the innovation network school shall be treated as a charter school
99	99	5 for purposes of determining tuition support.
100	100	6 SECTION 2. IC 20-43-1-9, AS AMENDED BY P.L.213-2015,
101	101	7 SECTION 205, IS AMENDED TO READ AS FOLLOWS
102	102	8 [EFFECTIVE JULY 1, 2022]: Sec. 9. "Complexity index" refers to the
103	103	9 complexity index determined:
104	104	10 (1) for state fiscal years ending before July 1, 2023, under
105	105	11 IC 20-43-13-4; and
106	106	12 (2) for state fiscal years beginning after June 30, 2023, under
107	107	13 IC 20-43-13-5.
108	108	14 SECTION 3. IC 20-43-2-2, AS AMENDED BY P.L.108-2019,
109	109	15 SECTION 218, IS AMENDED TO READ AS FOLLOWS
110	110	16 [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) Subject to subsection (f), the
111	111	17 maximum state distribution for a state fiscal year for all school
112	112	18 corporations for the purposes described in section 3 of this chapter is
113	113	19 the amount appropriated by the general assembly for those purposes for
114	114	20 that state fiscal year.
115	115	21 (b) If the budget director, after review by the budget committee,
116	116	22 makes a determination that the amount of the distribution for a state
117	117	23 fiscal year for all school corporations for the purposes described in
118	118	24 section 3 of this chapter exceeds the amount appropriated for these
119	119	25 purposes for the state fiscal year, the budget agency shall transfer
120	120	26 money from the state tuition reserve account to the state general fund
121	121	27 to cover the difference. However, the maximum amount that may be
122	122	28 transferred to the state general fund for the state fiscal year may not
123	123	29 exceed:
124	124	30 (1) seventy-five million dollars ($75,000,000) for the state fiscal
125	125	31 year beginning July 1, 2018; and
126	126	32 (2) twenty-five million dollars ($25,000,000) for a state fiscal year
127	127	33 beginning July 1, 2019, or thereafter.
128	128	34 (c) Any amounts transferred under this section shall be used to
129	129	35 augment the appropriation for state tuition support for the state fiscal
130	130	36 year and shall be distributed to school corporations to make or restore
131	131	37 the distributions for the purposes described in section 3 of this chapter.
132	132	38 (d) Transfers under this section are in addition to any transfers made
133	133	39 from the state tuition reserve account under IC 4-12-1-15.7 or any other
134	134	40 law.
135	135	41 (e) To the extent that the amount appropriated plus the amount
136	136	42 transferred is less than the amount that would be distributed under this
137	137	2022 IN 368—LS 6808/DI 125 4
138	138	1 article, the total amount to be distributed for the purposes described in
139	139	2 section 3 of this chapter to each recipient during the remaining months
140	140	3 of the state fiscal year shall be proportionately reduced so that the total
141	141	4 reductions equal the amount of the excess for the purposes described
142	142	5 in section 3 of this chapter.
143	143	6 (f) For state fiscal years beginning after June 30, 2023, of the
144	144	7 maximum state distribution described in subsection (a), the
145	145	8 maximum amount of money attributable to complexity index
146	146	9 calculations under:
147	147	10 (1) IC 20-43-6-3(b) STEP TWO; and
148	148	11 (2) IC 20-43-6-3(c) STEP FIVE;
149	149	12 that may be distributed for all school corporations in a particular
150	150	13 state fiscal year may not exceed seven hundred million one
151	151	14 hundred one thousand dollars ($700,101,000). To the extent that
152	152	15 the total amount calculated for a particular state fiscal year
153	153	16 exceeds the maximum amount provided in this subsection, the total
154	154	17 amount attributable to complexity index calculations that may be
155	155	18 distributed to each recipient during the remaining months of the
156	156	19 state fiscal year shall be proportionately reduced so that the total
157	157	20 payments attributable to complexity index calculations equal the
158	158	21 maximum amount provided under this subsection.
159	159	22 SECTION 4. IC 20-43-3-7, AS AMENDED BY P.L.213-2015,
160	160	23 SECTION 212, IS AMENDED TO READ AS FOLLOWS
161	161	24 [EFFECTIVE JULY 1, 2022]: Sec. 7. (a) This section applies to
162	162	25 distributions under this article that are computed in any part based on
163	163	26 a count of students under IC 20-43-4-2 or, for a state fiscal year
164	164	27 beginning after June 30, 2023, a determination under
165	165	28 IC 20-43-13-5.
166	166	29 (b) If the state board subsequently adjusts under IC 20-43-4-2 a
167	167	30 count, or, for a state fiscal year beginning after June 30, 2023, a
168	168	31 determination under IC 20-43-13-5, used for a distribution under this
169	169	32 article, the department shall adjust subsequent distributions to the
170	170	33 school corporation that are affected by the adjusted count or adjusted
171	171	34 determination, on the schedule determined by the department, to
172	172	35 reflect the differences between the distribution that the school
173	173	36 corporation received and the distribution that the school corporation
174	174	37 would have received if the adjusted count or adjusted determination
175	175	38 had been used.
176	176	39 SECTION 5. IC 20-43-4-9, AS AMENDED BY P.L.108-2019,
177	177	40 SECTION 224, IS AMENDED TO READ AS FOLLOWS
178	178	41 [EFFECTIVE JULY 1, 2022]: Sec. 9. (a) Subject to subsections (b) and
179	179	42 (c), this subsection applies to the calculation of state tuition support
180	180	2022 IN 368—LS 6808/DI 125 5
181	181	1 distributions that are based on the current ADM, and, for a state fiscal
182	182	2 year beginning after June 30, 2023, the complexity index, of a
183	183	3 school corporation. The fall count of ADM, as adjusted by the state
184	184	4 board under section 2 of this chapter, and, for a state fiscal year
185	185	5 beginning after June 30, 2023, the fall determination of the
186	186	6 complexity index, as adjusted under IC 20-43-13-5, shall be used to
187	187	7 compute state tuition support distributions made in the first six (6)
188	188	8 months of the current state fiscal year. and The spring count of ADM,
189	189	9 as adjusted by the state board under section 2 of this chapter, and, for
190	190	10 a state fiscal year beginning after June 30, 2023, the spring
191	191	11 determination of the complexity index, as adjusted under
192	192	12 IC 20-43-13-5, shall be used to compute state tuition support
193	193	13 distributions made in the second six (6) months of the state fiscal year.
194	194	14 (b) This subsection applies to a school corporation that does not
195	195	15 provide the estimates required by section 2(b) of this chapter before the
196	196	16 deadline. For monthly state tuition support distributions made before
197	197	17 the count of ADM is finalized, the department shall determine the
198	198	18 distribution amount for such a school corporation for a state fiscal year
199	199	19 of the biennium, using data that were used by the general assembly in
200	200	20 determining the state tuition support appropriation for the budget act
201	201	21 for that state fiscal year. The department may adjust the data used
202	202	22 under this subsection for errors.
203	203	23 (c) If the state board adjusts a count of ADM, or, for a state fiscal
204	204	24 year beginning after June 30, 2023, adjusts a determination of the
205	205	25 complexity index for a school corporation, after a distribution is
206	206	26 made under this article, the adjusted count or adjusted complexity
207	207	27 index determination retroactively applies to the amount of state
208	208	28 tuition support distributed to a school corporation affected by the
209	209	29 adjusted count or adjusted complexity index determination. The
210	210	30 department shall settle any overpayment or underpayment of state
211	211	31 tuition support resulting from an adjusted count of ADM, or, for a
212	212	32 state fiscal year beginning after June 30, 2023, an adjusted
213	213	33 complexity index determination, on the schedule determined by the
214	214	34 department and approved by the budget agency.
215	215	35 SECTION 6. IC 20-43-13-4, AS AMENDED BY P.L.165-2021,
216	216	36 SECTION 168, IS AMENDED TO READ AS FOLLOWS
217	217	37 [EFFECTIVE JULY 1, 2022]: Sec. 4. (a) This section applies for the
218	218	38 state fiscal years:
219	219	39 (1) beginning July 1, 2021, and ending June 30, 2022; and
220	220	40 (2) beginning July 1, 2022, and ending June 30, 2023.
221	221	41 (b) Except as provided in subsections (c) and (d), (d) and (e), the
222	222	42 complexity index is the percentage of the school corporation's students
223	223	2022 IN 368—LS 6808/DI 125 6
224	224	1 who were receiving Supplemental Nutrition Assistance Program
225	225	2 (SNAP) benefits, Temporary Assistance for Needy Families (TANF)
226	226	3 benefits, or foster care services as of October 1 in the school year
227	227	4 ending in the later of:
228	228	5 (1) 2021; or
229	229	6 (2) the first year of operation of the school corporation.
230	230	7 (b) (c) For a conversion charter school, the percentage determined
231	231	8 under this section is the percentage of the sponsor school corporation.
232	232	9 (c) (d) Except as provided in subsection (d), (e), the complexity
233	233	10 index for a school corporation that has entered into an agreement with
234	234	11 one (1) or more charter schools to participate as an innovation network
235	235	12 charter school under IC 20-25.7-5 for a state fiscal year is equal to the
236	236	13 result using the following formula:
237	237	14 STEP ONE: Determine:
238	238	15 (A) the school corporation's enrollment; minus
239	239	16 (B) the enrollment of each participating innovation network
240	240	17 charter school.
241	241	18 STEP TWO: Determine the number of students in the school
242	242	19 corporation who were receiving Supplemental Nutrition
243	243	20 Assistance Program (SNAP) benefits, Temporary Assistance for
244	244	21 Needy Families (TANF) benefits, or foster care services as of
245	245	22 October 1 in the school year ending in 2021, not including
246	246	23 students enrolled in each participating innovation network charter
247	247	24 school.
248	248	25 STEP THREE: Divide the result of STEP TWO by the result of
249	249	26 STEP ONE.
250	250	27 STEP FOUR: Determine the enrollment of each participating
251	251	28 innovation network charter school.
252	252	29 STEP FIVE: Determine the number of students in each
253	253	30 participating innovation network charter school who were
254	254	31 receiving Supplemental Nutrition Assistance Program (SNAP)
255	255	32 benefits, Temporary Assistance for Needy Families (TANF)
256	256	33 benefits, or foster care services as of October 1 in the school year
257	257	34 ending in the later of:
258	258	35 (A) 2021; or
259	259	36 (B) the first year of operation of the participating innovation
260	260	37 network charter school.
261	261	38 STEP SIX: Divide the result of STEP FIVE by the result of STEP
262	262	39 FOUR.
263	263	40 STEP SEVEN: For each participating innovation network charter
264	264	41 school, determine the greater of:
265	265	42 (A) the result of STEP THREE; or
266	266	2022 IN 368—LS 6808/DI 125 7
267	267	1 (B) the result of STEP SIX.
268	268	2 STEP EIGHT: For each participating innovation network charter
269	269	3 school, multiply the result of STEP SEVEN by the result of STEP
270	270	4 FOUR.
271	271	5 STEP NINE: Determine the sum of:
272	272	6 (A) the result of STEP TWO; plus
273	273	7 (B) the results of STEP EIGHT, for each participating
274	274	8 innovation network charter school.
275	275	9 STEP TEN: Determine the sum of:
276	276	10 (A) the result of STEP ONE; plus
277	277	11 (B) the results of STEP FOUR for each participating
278	278	12 innovation network charter school.
279	279	13 STEP ELEVEN: Divide the STEP NINE result by the STEP TEN
280	280	14 result.
281	281	15 (d) (e) If the complexity index of a participating innovation network
282	282	16 charter school that was established before January 1, 2016, is, for the
283	283	17 current school year, greater than the complexity index for the school
284	284	18 corporation with which the innovation network charter school has
285	285	19 contracted, the complexity index of the participating innovation
286	286	20 network charter school is determined as described in IC 20-25.7-5-2(e).
287	287	21 SECTION 7. IC 20-43-13-5 IS ADDED TO THE INDIANA CODE
288	288	22 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
289	289	23 1, 2022]: Sec. 5. (a) This section applies for state fiscal years:
290	290	24 (1) beginning July 1, 2023, and ending June 30, 2024; and
291	291	25 (2) beginning July 1, 2024, and ending June 30, 2025.
292	292	26 (b) Except as provided in subsections (f) and (g), and subject to
293	293	27 subsection (c), the state board shall determine the number of
294	294	28 students in each school corporation receiving Supplemental
295	295	29 Nutrition Assistance Program (SNAP) benefits, Temporary
296	296	30 Assistance for Needy Families (TANF) benefits, or foster care
297	297	31 services two (2) times each school year, with one (1) determination
298	298	32 date occurring in each of the following periods:
299	299	33 (1) The date of the fall count of ADM determined under
300	300	34 IC 20-43-4-3(a)(1).
301	301	35 (2) The date of the spring count of ADM determined under
302	302	36 IC 20-43-4-3(a)(2).
303	303	37 (c) However, if extreme patterns of:
304	304	38 (1) student in-migration;
305	305	39 (2) illness;
306	306	40 (3) natural disaster; or
307	307	41 (4) other unusual conditions;
308	308	42 on either a day described in subsection (b)(1) or (b)(2), or the
309	309	2022 IN 368—LS 6808/DI 125 8
310	310	1 subsequent adjustment date cause the determination under
311	311	2 subsection (b) to be unrepresentative of the number of students in
312	312	3 each school corporation receiving Supplemental Nutrition
313	313	4 Assistance Program (SNAP) benefits, Temporary Assistance for
314	314	5 Needy Families (TANF) benefits, or foster care services, the state
315	315	6 board may designate another day for making the determination
316	316	7 under this section.
317	317	8 (d) For purposes of determining basic tuition support for a
318	318	9 school corporation under IC 20-43-6-3, the complexity index is the
319	319	10 percentage of each school corporation's students receiving
320	320	11 Supplemental Nutrition Assistance Program (SNAP) benefits,
321	321	12 Temporary Assistance for Needy Families (TANF) benefits, or
322	322	13 foster care services on the applicable determination date described
323	323	14 in subsection (b).
324	324	15 (e) After an initial determination is completed under this
325	325	16 section, a school corporation may submit any information
326	326	17 necessary to the department with a request that the department
327	327	18 make an adjusted determination of students receiving
328	328	19 Supplemental Nutrition Assistance Program (SNAP) benefits,
329	329	20 Temporary Assistance for Needy Families (TANF) benefits, or
330	330	21 foster care services, if the school corporation has reason to believe
331	331	22 that the determination is unrepresentative of the number of the
332	332	23 school corporation's students receiving the services. After verifying
333	333	24 the accuracy of submitted information, the department may adjust
334	334	25 the school corporation's determination of students receiving
335	335	26 Supplemental Nutrition Assistance Program (SNAP) benefits,
336	336	27 Temporary Assistance for Needy Families (TANF) benefits, or
337	337	28 foster care services.
338	338	29 (f) For a conversion charter school, the percentage determined
339	339	30 under this section is the percentage of the sponsor school
340	340	31 corporation.
341	341	32 (g) Except as provided in subsection (h), the complexity index
342	342	33 for a school corporation that has entered into an agreement with
343	343	34 one (1) or more charter schools to participate as an innovation
344	344	35 network charter school under IC 20-25.7-5 for a state fiscal year is
345	345	36 equal to the result using the following formula:
346	346	37 STEP ONE: Determine:
347	347	38 (A) the school corporation's enrollment; minus
348	348	39 (B) the enrollment of each participating innovation
349	349	40 network charter school.
350	350	41 STEP TWO: Determine the number of students in the school
351	351	42 corporation who were receiving Supplemental Nutrition
352	352	2022 IN 368—LS 6808/DI 125 9
353	353	1 Assistance Program (SNAP) benefits, Temporary Assistance
354	354	2 for Needy Families (TANF) benefits, or foster care services as
355	355	3 of the applicable date described in subsection (b), not
356	356	4 including students enrolled in each participating innovation
357	357	5 network charter school.
358	358	6 STEP THREE: Divide the result of STEP TWO by the result
359	359	7 of STEP ONE.
360	360	8 STEP FOUR: Determine the enrollment of each participating
361	361	9 innovation network charter school.
362	362	10 STEP FIVE: Determine the number of students in each
363	363	11 participating innovation network charter school who were
364	364	12 receiving Supplemental Nutrition Assistance Program (SNAP)
365	365	13 benefits, Temporary Assistance for Needy Families (TANF)
366	366	14 benefits, or foster care services on the later of:
367	367	15 (A) the most recent determination described in subsection
368	368	16 (b); or
369	369	17 (B) the first year of operation of the participating
370	370	18 innovation network charter school.
371	371	19 STEP SIX: Divide the result of STEP FIVE by the result of
372	372	20 STEP FOUR.
373	373	21 STEP SEVEN: For each participating innovation network
374	374	22 charter school, determine the greater of:
375	375	23 (A) the result of STEP THREE; or
376	376	24 (B) the result of STEP SIX.
377	377	25 STEP EIGHT: For each participating innovation network
378	378	26 charter school, multiply the result of STEP SEVEN by the
379	379	27 result of STEP FOUR.
380	380	28 STEP NINE: Determine the sum of:
381	381	29 (A) the result of STEP TWO; plus
382	382	30 (B) the results of STEP EIGHT, for each participating
383	383	31 innovation network charter school.
384	384	32 STEP TEN: Determine the sum of:
385	385	33 (A) the result of STEP ONE; plus
386	386	34 (B) the results of STEP FOUR for each participating
387	387	35 innovation network charter school.
388	388	36 STEP ELEVEN: Divide the STEP NINE result by the STEP
389	389	37 TEN result.
390	390	38 (h) If a determination of the complexity index of a participating
391	391	39 innovation network charter school that was established before
392	392	40 January 1, 2016, is, for either of the determinations made in the
393	393	41 current school year, greater than the determination of the
394	394	42 complexity index for the school corporation with which the
395	395	2022 IN 368—LS 6808/DI 125 10
396	396	1 innovation network charter school has contracted, the complexity
397	397	2 index of the participating innovation network charter school is
398	398	3 determined as described in IC 20-25.7-5-2(f).
399	399	2022 IN 368—LS 6808/DI 125