Indiana 2023 Regular Session

Indiana House Bill HB1607 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1607
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 5-1.5-1-8; IC 6-2.5-10-1; IC 20-24; IC 20-29;
7	7	IC 20-40; IC 20-46; IC 20-49.
8	8	Synopsis: Charter school matters. Provides all charter schools access
9	9	to loans through the Indiana bond bank. Requires a county auditor to
10	10	distribute a portion of revenue received from a school corporation's
11	11	operations fund property tax levy to each: (1) charter school in which
12	12	students who receive not more than 50% virtual instruction and who
13	13	have legal settlement in the school corporation attend; and (2)
14	14	transferee school corporation that a transferred student who has legal
15	15	settlement in the school corporation attends. Phases in the distributions
16	16	over three years. Provides that, for a resolution to adopt a school
17	17	operating referendum tax levy adopted after June 30, 2023, a county
18	18	auditor must distribute a portion of revenue received from the levy or
19	19	school safety referendum tax levy to each transferee school corporation
20	20	and charter school in which students who receive not more than 50%
21	21	virtual instruction and who have legal settlement in the school
22	22	corporation attend. Provides that if a charter school receives a
23	23	distribution from a school corporation from a school operating
24	24	referendum tax levy or a school safety referendum tax levy, the charter
25	25	school must post certain information on the charter school's website.
26	26	Provides that a charter school or transferee school corporation that may
27	27	receive money from a school operating referendum tax levy or a school
28	28	safety referendum tax levy may not promote a position on a
29	29	referendum, in the same manner as a school corporation is prohibited
30	30	from promoting a position on a referendum. Provides that the
31	31	maximum length of a charter is 15 years. (Current law provides that the
32	32	maximum length of a charter is seven years.) Amends the definition of
33	33	"school building construction program" to: (1) include the purchase,
34	34	(Continued next page)
35	35	Effective: July 1, 2023; January 1, 2024.
36	36	Behning, Teshka
37	37	January 19, 2023, read first time and referred to Committee on Education.
38	38	2023 IN 1607—LS 7216/DI 116 Digest Continued
39	39	lease, or financing of land, the construction and equipping of school
40	40	buildings, and the remodeling, repairing, or improving of school
41	41	buildings by a charter school; and (2) replace "adjusted assessed
42	42	valuation" with "assessed valuation" with regard to school corporation
43	43	eligibility for an advance from the common school fund. Establishes
44	44	the public school options program and fund. Provides that a charter
45	45	school (excluding a virtual charter school or adult high school) may
46	46	receive an advance from the common school fund if the charter school's
47	47	authorizer approves the application. Provides that the state board of
48	48	education shall repay a charter school's advance from proceeds in the
49	49	public school options fund. Provides that the department of state
50	50	revenue shall make a distribution from the state retail and use tax that
51	51	it collects to the public school options fund. Makes conforming
52	52	amendments. Makes a technical correction.
53	53	2023 IN 1607—LS 7216/DI 1162023 IN 1607—LS 7216/DI 116 Introduced
54	54	First Regular Session of the 123rd General Assembly (2023)
55	55	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
56	56	Constitution) is being amended, the text of the existing provision will appear in this style type,
57	57	additions will appear in this style type, and deletions will appear in this style type.
58	58	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
59	59	provision adopted), the text of the new provision will appear in this style type. Also, the
60	60	word NEW will appear in that style type in the introductory clause of each SECTION that adds
61	61	a new provision to the Indiana Code or the Indiana Constitution.
62	62	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
63	63	between statutes enacted by the 2022 Regular Session of the General Assembly.
64	64	HOUSE BILL No. 1607
65	65	A BILL FOR AN ACT to amend the Indiana Code concerning
66	66	taxation.
67	67	Be it enacted by the General Assembly of the State of Indiana:
68	68	1 SECTION 1. IC 5-1.5-1-8, AS AMENDED BY P.L.81-2020,
69	69	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
70	70	3 JULY 1, 2023]: Sec. 8. "Qualified entity" means:
71	71	4 (1) a political subdivision (as defined in IC 36-1-2-13);
72	72	5 (2) a state educational institution;
73	73	6 (3) a leasing body (as defined in IC 5-1-1-1(a));
74	74	7 (4) a not-for-profit utility (as defined in IC 8-1-2-125);
75	75	8 (5) any rural electric membership corporation organized under
76	76	9 IC 8-1-13;
77	77	10 (6) any corporation that was organized in 1963 under Acts 1935,
78	78	11 c. 157 and that engages in the generation and transmission of
79	79	12 electric energy;
80	80	13 (7) any communications cooperative corporation formed under
81	81	14 IC 8-1-17;
82	82	15 (8) any commission, authority, or authorized body of any qualified
83	83	2023 IN 1607—LS 7216/DI 116 2
84	84	1 entity;
85	85	2 (9) any organization, association, or trust with members,
86	86	3 participants, or beneficiaries that are all individually qualified
87	87	4 entities;
88	88	5 (10) any commission, authority, or instrumentality of the state;
89	89	6 (11) any other participant (as defined in IC 5-1.2-2-54);
90	90	7 (12) a charter school established under IC 20-5.5 (before its
91	91	8 repeal) or IC 20-24; that is not a qualified entity under
92	92	9 IC 5-1.4-1-10;
93	93	10 (13) a volunteer fire department (as defined in IC 36-8-12-2); or
94	94	11 (14) a development authority (as defined in IC 36-7.6-1-8).
95	95	12 SECTION 2. IC 6-2.5-10-1, AS AMENDED BY P.L.218-2017,
96	96	13 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
97	97	14 JULY 1, 2023]: Sec. 1. (a) The department shall account for all state
98	98	15 gross retail and use taxes that it collects.
99	99	16 (b) Of all the state gross retail and use taxes that the department
100	100	17 collects, the department shall determine separately the parts that:
101	101	18 (1) the department collects under IC 6-2.5-3.5 (gasoline use tax);
102	102	19 and
103	103	20 (2) the department collects under this article, less the amount
104	104	21 described in subdivision (1).
105	105	22 (c) The department shall deposit the collections described in
106	106	23 subsection (b)(1) in the following manner:
107	107	24 (1) For state fiscal year 2017, the following:
108	108	25 (A) Fourteen and two hundred eighty-six thousandths percent
109	109	26 (14.286%) of the collections shall be deposited in the motor
110	110	27 vehicle highway account established under IC 8-14-1.
111	111	28 (B) Eighty-five and seven hundred fourteen thousandths
112	112	29 percent (85.714%) to the state general fund.
113	113	30 (2) For state fiscal year 2018, the following:
114	114	31 (A) Fourteen and two hundred eighty-six thousandths percent
115	115	32 (14.286%) of the collections shall be deposited in the motor
116	116	33 vehicle highway account established under IC 8-14-1.
117	117	34 (B) Fourteen and two hundred eighty-six thousandths percent
118	118	35 (14.286%) of the collections shall be deposited in the local
119	119	36 road and bridge matching grant fund established under
120	120	37 IC 8-23-30.
121	121	38 (C) Seventy-one and four hundred twenty-eight thousandths
122	122	39 percent (71.428%) to the state general fund.
123	123	40 (3) For state fiscal year 2019, the following:
124	124	41 (A) Fourteen and two hundred eighty-six thousandths percent
125	125	42 (14.286%) of the collections shall be deposited in the motor
126	126	2023 IN 1607—LS 7216/DI 116 3
127	127	1 vehicle highway account established under IC 8-14-1.
128	128	2 (B) Twenty-one and four hundred twenty-nine thousandths
129	129	3 percent (21.429%) of the collections shall be deposited in the
130	130	4 local road and bridge matching grant fund established under
131	131	5 IC 8-23-30.
132	132	6 (C) Sixty-four and two hundred eighty-five thousandths
133	133	7 percent (64.285%) shall be deposited in the state general fund.
134	134	8 (4) For state fiscal year 2020 and for each state fiscal year
135	135	9 thereafter, the following:
136	136	10 (A) Fourteen and two hundred eighty-six thousandths percent
137	137	11 (14.286%) of the collections shall be deposited in the motor
138	138	12 vehicle highway account established under IC 8-14-1.
139	139	13 (B) Twenty-one and four hundred twenty-nine thousandths
140	140	14 percent (21.429%) of the collections shall be deposited in the
141	141	15 local road and bridge matching grant fund established under
142	142	16 IC 8-23-30.
143	143	17 (C) The following shall be deposited in the state general fund:
144	144	18 (i) For state fiscal year 2020, fifty-three and five hundred
145	145	19 seventy-five thousandths percent (53.575%) shall be
146	146	20 deposited in the state general fund.
147	147	21 (ii) For state fiscal year 2021, forty-two and eight hundred
148	148	22 sixty-five thousandths percent (42.865%) shall be deposited
149	149	23 in the state general fund.
150	150	24 (iii) For state fiscal year 2022, thirty-two and one hundred
151	151	25 fifty-five thousandths percent (32.155%) shall be deposited
152	152	26 in the state general fund.
153	153	27 (iv) For state fiscal year 2023, twenty-one and four hundred
154	154	28 forty-five thousandths percent (21.445%) shall be deposited
155	155	29 in the state general fund.
156	156	30 (v) For state fiscal year 2024, ten and seven hundred
157	157	thirty-five thousandths 31 percent (10.735%) shall be deposited
158	158	32 in the state general fund.
159	159	33 (D) The following shall be deposited in the special
160	160	34 transportation flexibility fund established by IC 4-12-16.5-2:
161	161	35 (i) For state fiscal year 2020, eight and five hundred
162	162	36 sixty-eight thousands percent (8.568%) of the collections
163	163	37 shall be deposited in the special transportation flexibility
164	164	38 fund established by IC 4-12-16.5-2.
165	165	39 (ii) For state fiscal year 2021, twelve and eight hundred
166	166	40 fifty-two thousandths percent (12.852%) of the collections
167	167	41 shall be deposited in the special transportation flexibility
168	168	42 fund established by IC 4-12-16.5-2.
169	169	2023 IN 1607—LS 7216/DI 116 4
170	170	1 (iii) For state fiscal year 2022, twelve and eight hundred
171	171	2 fifty-two thousandths percent (12.852%) of the collections
172	172	3 shall be deposited in the special transportation flexibility
173	173	4 fund established by IC 4-12-16.5-2.
174	174	5 (iv) For state fiscal year 2023, eight and five hundred
175	175	6 sixty-eight thousands percent (8.568%) of the collections
176	176	7 shall be deposited in the special transportation flexibility
177	177	8 fund established by IC 4-12-16.5-2.
178	178	9 (E) The following shall be deposited in the state highway fund:
179	179	10 (i) For state fiscal year 2020, two and one hundred forty-two
180	180	11 thousandths percent (2.142%) of the collections shall be
181	181	12 deposited in the state highway fund.
182	182	13 (ii) For state fiscal year 2021, eight and five hundred
183	183	14 sixty-eight thousandths percent (8.568%) of the collections
184	184	15 shall be deposited in the state highway fund.
185	185	16 (iii) For state fiscal year 2022, nineteen and two hundred
186	186	17 seventy-eight thousandths percent (19.278%) of the
187	187	18 collections shall be deposited in the state highway fund.
188	188	19 (iv) For state fiscal year 2023, thirty-four and two hundred
189	189	20 seventy-two thousandths percent (34.272%) of the
190	190	21 collections shall be deposited in the state highway fund.
191	191	22 (v) For state fiscal year 2024, fifty-three and fifty-five
192	192	23 hundredths percent (53.55%) of the collections shall be
193	193	24 deposited in the state highway fund.
194	194	25 (vi) For state fiscal year 2025, and for each state fiscal year
195	195	26 thereafter, sixty-four and two hundred eighty-five
196	196	27 thousandths percent (64.285%) of the collections shall be
197	197	28 deposited in the state highway fund.
198	198	29 (d) The department shall deposit those collections described in
199	199	30 subsection (b)(2) in the following manner:
200	200	31 (1) Ninety-nine and eight two hundred thirty-eight thousandths
201	201	32 percent (99.838%) (99.238%) of the collections shall be paid into
202	202	33 the state general fund.
203	203	34 (2) Thirty-one thousandths of one percent (0.031%) of the
204	204	35 collections shall be deposited into the industrial rail service fund
205	205	36 established under IC 8-3-1.7-2.
206	206	37 (3) One hundred thirty-one thousandths of one percent (0.131%)
207	207	38 of the collections shall be deposited into the commuter rail service
208	208	39 fund established under IC 8-3-1.5-20.5.
209	209	40 (4) Six-tenths of one percent (0.6%) of the collections shall be
210	210	41 deposited into the public school options fund established by
211	211	42 IC 20-49-11-5.
212	212	2023 IN 1607—LS 7216/DI 116 5
213	213	1 SECTION 3. IC 20-24-4-1, AS AMENDED BY P.L.211-2021,
214	214	2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
215	215	3 JULY 1, 2023]: Sec. 1. (a) A charter must meet the following
216	216	4 requirements:
217	217	5 (1) Be a written instrument.
218	218	6 (2) Be executed by an authorizer and an organizer.
219	219	7 (3) Confer certain rights, franchises, privileges, and obligations
220	220	8 on a charter school.
221	221	9 (4) Confirm the status of a charter school as a public school.
222	222	10 (5) Subject to subdivision (6)(E), be granted for:
223	223	11 (A) not less than three (3) years or more than seven (7) fifteen
224	224	12 (15) years; and
225	225	13 (B) a fixed number of years agreed to by the authorizer and the
226	226	14 organizer.
227	227	15 (6) Provide for the following:
228	228	16 (A) A review by the authorizer of the charter school's
229	229	17 performance, including the progress of the charter school in
230	230	18 achieving the academic goals set forth in the charter, at least
231	231	19 one (1) time in each five (5) year period while the charter is in
232	232	20 effect.
233	233	21 (B) Renewal, if the authorizer and the organizer agree to renew
234	234	22 the charter.
235	235	23 (C) The renewal application must include guidance from the
236	236	24 authorizer, and the guidance must include the performance
237	237	25 criteria that will guide the authorizer's renewal decisions.
238	238	26 (D) The renewal application process must, at a minimum,
239	239	27 provide an opportunity for the charter school to:
240	240	28 (i) present additional evidence, beyond the data contained in
241	241	29 the performance report, supporting its case for charter
242	242	30 renewal;
243	243	31 (ii) describe improvements undertaken or planned for the
244	244	32 charter school; and
245	245	33 (iii) detail the charter school's plans for the next charter
246	246	34 term.
247	247	35 (E) Not later than the end of the calendar year in which the
248	248	36 charter school seeks renewal of a charter, the governing board
249	249	37 of a charter school seeking renewal shall submit a renewal
250	250	38 application to the charter authorizer under the renewal
251	251	39 application guidance issued by the authorizer. The authorizer
252	252	40 shall make a final ruling on the renewal application not later
253	253	41 than April 1 after the filing of the renewal application. A
254	254	42 renewal granted under this clause is not subject to the three (3)
255	255	2023 IN 1607—LS 7216/DI 116 6
256	256	1 year minimum described in subdivision (5). The April 1
257	257	2 deadline does not apply to any review or appeal of a final
258	258	3 ruling. After the final ruling is issued, the charter school may
259	259	4 obtain further review by the authorizer of the authorizer's final
260	260	5 ruling in accordance with the terms of the charter school's
261	261	6 charter and the protocols of the authorizer.
262	262	7 (7) Specify the grounds for the authorizer to:
263	263	8 (A) revoke the charter before the end of the term for which the
264	264	9 charter is granted; or
265	265	10 (B) not renew a charter.
266	266	11 (8) Set forth the methods by which the charter school will be held
267	267	12 accountable for achieving the educational mission and goals of
268	268	13 the charter school, including the following:
269	269	14 (A) Evidence of improvement in:
270	270	15 (i) assessment measures, including the statewide assessment
271	271	16 program measures;
272	272	17 (ii) attendance rates;
273	273	18 (iii) graduation rates (if appropriate);
274	274	19 (iv) increased numbers of Indiana diplomas with a Core 40
275	275	20 designation and other college and career ready indicators
276	276	21 including advanced placement participation and passage,
277	277	22 dual credit participation and passage, and International
278	278	23 Baccalaureate participation and passage (if appropriate);
279	279	24 (v) increased numbers of Indiana diplomas with Core 40
280	280	25 with academic honors and technical honors designations (if
281	281	26 appropriate);
282	282	27 (vi) student academic growth;
283	283	28 (vii) financial performance and stability; and
284	284	29 (viii) governing board performance and stewardship,
285	285	30 including compliance with applicable laws, rules and
286	286	31 regulations, and charter terms.
287	287	32 (B) Evidence of progress toward reaching the educational
288	288	33 goals set by the organizer.
289	289	34 (9) Describe the method to be used to monitor the charter
290	290	35 school's:
291	291	36 (A) compliance with applicable law; and
292	292	37 (B) performance in meeting targeted educational performance.
293	293	38 (10) Specify that the authorizer and the organizer may amend the
294	294	39 charter during the term of the charter by mutual consent and
295	295	40 describe the process for amending the charter.
296	296	41 (11) Describe specific operating requirements, including all the
297	297	42 matters set forth in the application for the charter.
298	298	2023 IN 1607—LS 7216/DI 116 7
299	299	1 (12) Specify a date when the charter school will:
300	300	2 (A) begin school operations; and
301	301	3 (B) have students attending the charter school.
302	302	4 (13) Specify that records of a charter school relating to the
303	303	5 school's operation and charter are subject to inspection and
304	304	6 copying to the same extent that records of a public school are
305	305	7 subject to inspection and copying under IC 5-14-3.
306	306	8 (14) Specify that records provided by the charter school to the
307	307	9 department or authorizer that relate to compliance by the
308	308	10 organizer with the terms of the charter or applicable state or
309	309	11 federal laws are subject to inspection and copying in accordance
310	310	12 with IC 5-14-3.
311	311	13 (15) Specify that the charter school is subject to the requirements
312	312	14 of IC 5-14-1.5.
313	313	15 (16) This subdivision applies to a charter established or renewed
314	314	16 for an adult high school after June 30, 2014. The charter must
315	315	17 require:
316	316	18 (A) that the school will offer flexible scheduling;
317	317	19 (B) that students will not complete the majority of instruction
318	318	20 of the school's curriculum online or through remote
319	319	21 instruction;
320	320	22 (C) that the school will offer dual credit or industry
321	321	23 certification course work that aligns with career pathways as
322	322	24 recommended by the Indiana career council established by
323	323	25 IC 22-4.5-9-3 (expired); and
324	324	26 (D) a plan:
325	325	27 (i) to support successful program completion and to assist
326	326	28 transition of graduates to the workforce or to a
327	327	29 postsecondary education upon receiving a diploma from the
328	328	30 adult high school; and
329	329	31 (ii) to review individual student accomplishments and
330	330	32 success after a student receives a diploma from the adult
331	331	33 high school.
332	332	34 (b) A charter school shall set annual performance targets in
333	333	35 conjunction with the charter school's authorizer. The annual
334	334	36 performance targets shall be designed to help each school meet
335	335	37 applicable federal, state, and authorizer expectations.
336	336	38 SECTION 4. IC 20-24-7-6, AS AMENDED BY P.L.154-2020,
337	337	39 SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
338	338	40 JULY 1, 2023]: Sec. 6. (a) With the approval of a majority of the
339	339	41 members of the governing body, a school corporation may distribute a
340	340	42 proportionate share of the school corporation's operations fund to a
341	341	2023 IN 1607—LS 7216/DI 116 8
342	342	1 charter school. A charter school may elect to distribute a proportionate
343	343	2 share of the charter school's operations fund to the school corporation
344	344	3 in whose district the charter school is located.
345	345	4 (b) This subsection applies to a levy resulting from a resolution
346	346	5 to place a referendum on the ballot adopted by the governing body
347	347	6 under IC 20-46-1-8 or IC 20-46-1-8.5 before July 1, 2023. A
348	348	7 governing body may distribute money that is received as part of a tax
349	349	8 levy collected under IC 20-46-1 from the school corporation's
350	350	9 education fund to a charter school, excluding a virtual charter school,
351	351	10 in the manner provided by IC 20-46-1-8(d). IC 20-46-1-8(e).
352	352	11 (c) This subsection applies to a levy resulting from a resolution
353	353	12 to place a referendum on the ballot adopted by the governing body
354	354	13 under IC 20-46-9-6 or IC 20-46-9-7 before July 1, 2023. A
355	355	14 governing body may distribute money from the school safety
356	356	15 referendum tax levy fund to a charter school, excluding a virtual
357	357	16 charter school, in the manner prescribed by IC 20-46-9-6(b).
358	358	17 SECTION 5. IC 20-24-7-6.1 IS ADDED TO THE INDIANA CODE
359	359	18 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
360	360	19 JANUARY 1, 2024]: Sec. 6.1. (a) This section applies to revenue
361	361	20 collected after December 31, 2023, from a tax levy imposed by a
362	362	21 governing body under IC 20-46-8.
363	363	22 (b) The county auditor shall distribute money that is received as
364	364	23 part of a tax levy collected under IC 20-46-8 to an eligible charter
365	365	24 school, excluding a virtual charter school, in the manner provided
366	366	25 by IC 20-46-8-11.
367	367	26 SECTION 6. IC 20-24-7-6.2 IS ADDED TO THE INDIANA CODE
368	368	27 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
369	369	28 1, 2023]: Sec. 6.2. (a) This section applies to a levy resulting from
370	370	29 a resolution to place a referendum on the ballot adopted by the
371	371	30 governing body under IC 20-46-1-8, IC 20-46-1-8.5, IC 20-46-9-6,
372	372	31 or IC 20-46-9-7 after June 30, 2023.
373	373	32 (b) The county auditor in the county in which the applicable
374	374	33 school corporation is located shall distribute money that is received
375	375	34 as part of a tax levy collected under IC 20-46-1 to an applicable
376	376	35 charter school, excluding a virtual charter school, in the manner
377	377	36 provided by IC 20-46-1-21.
378	378	37 (c) The county auditor in the county in which the applicable
379	379	38 school corporation is located shall distribute money that is received
380	380	39 as part of a tax levy collected under IC 20-46-9 to an applicable
381	381	40 charter school, excluding a virtual charter school, in the manner
382	382	41 prescribed by IC 20-46-9-22.
383	383	42 (d) A charter school that may receive money from a school
384	384	2023 IN 1607—LS 7216/DI 116 9
385	385	1 corporation's tax levy collected under IC 20-46-1 or a school safety
386	386	2 referendum tax levy under IC 20-46-9 may not promote a position
387	387	3 on a referendum in the same manner as a school corporation is
388	388	4 prohibited from promoting a position on a referendum under
389	389	5 IC 20-46-1-20.
390	390	6 (e) If a charter school receives a distribution from a school
391	391	7 corporation from the school corporation's tax levy collected under
392	392	8 IC 20-46-1 or a school safety referendum tax levy under
393	393	9 IC 20-46-9, the charter school must post the following on the
394	394	10 charter school's website:
395	395	11 (1) The specific purposes for which the revenue received from
396	396	12 the tax levy will be used.
397	397	13 (2) An estimate of the annual dollar amounts that will be
398	398	14 expended for each purpose described in subdivision (1).
399	399	15 SECTION 7. IC 20-29-2-6, AS AMENDED BY P.L.272-2019,
400	400	16 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
401	401	17 JULY 1, 2023]: Sec. 6. "Deficit financing" for a budget year:
402	402	18 (1) means, except as provided in subdivision (2), actual
403	403	19 expenditures exceeding the employer's current year actual
404	404	20 education fund revenue and, for a school employer for which the
405	405	21 voters have passed an operating referendum tax levy under
406	406	22 IC 20-46-1 or a school safety referendum tax levy under
407	407	23 IC 20-46-9, the amount of revenue certified by the department of
408	408	24 local government finance, excluding money distributed to a
409	409	25 charter school or transferee school corporation from a levy
410	410	26 resulting from a resolution to place a referendum on the
411	411	27 ballot that is adopted by the governing body under
412	412	28 IC 20-46-1-8, IC 20-46-1-8.5, IC 20-46-9-6, or IC 20-46-9-7
413	413	29 after June 30, 2023; or
414	414	30 (2) means, in the case of any distressed school corporation, the
415	415	31 Gary Community School Corporation, or the Muncie Community
416	416	32 school corporation, actual expenditures plus additional payments
417	417	33 against any outstanding debt obligations exceeding the employer's
418	418	34 current year actual education fund revenue, and, for a school
419	419	35 employer for which the voters have passed an operating
420	420	36 referendum tax levy under IC 20-46-1 or a school safety
421	421	37 referendum tax levy under IC 20-46-9, excluding money
422	422	38 distributed to a charter school or transferee school
423	423	39 corporation from a levy resulting from a resolution to place
424	424	40 a referendum on the ballot that is adopted by the governing
425	425	41 body under IC 20-46-1-8, IC 20-46-1-8.5, IC 20-46-9-6, or
426	426	42 IC 20-46-9-7 after June 30, 2023, the amount of revenue
427	427	2023 IN 1607—LS 7216/DI 116 10
428	428	1 certified by the department of local government finance.
429	429	2 Except as provided in IC 20-29-6-3(c), revenue does not include money
430	430	3 estimated to be or actually transferred from the school corporation's
431	431	4 operations fund to its education fund.
432	432	5 SECTION 8. IC 20-29-8-7, AS AMENDED BY P.L.272-2019,
433	433	6 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
434	434	7 JULY 1, 2023]: Sec. 7. (a) When a factfinder is requested or required
435	435	8 under IC 20-29-6, the board shall appoint a factfinder.
436	436	9 (b) The factfinder shall make an investigation and hold hearings as
437	437	10 the factfinder considers necessary in connection with a dispute.
438	438	11 (c) The factfinder:
439	439	12 (1) may restrict the factfinder's findings to those issues that the
440	440	13 factfinder determines significant;
441	441	14 (2) must restrict the findings to the items listed in IC 20-29-6-4;
442	442	15 and
443	443	16 (3) may not impose terms beyond those proposed by the parties in
444	444	17 their last, best offers.
445	445	18 (d) The factfinder may use evidence furnished to the factfinder by:
446	446	19 (1) the parties;
447	447	20 (2) the board;
448	448	21 (3) the board's staff; or
449	449	22 (4) any other state agency.
450	450	23 (e) The factfinder shall conduct the factfinding hearing in public in
451	451	24 a room or facility owned by the county or local unit of government
452	452	25 located in the county in which the school employer is located, or if the
453	453	26 school employer is located in more than one (1) county, in the county
454	454	27 in which the greatest number of students who attend the school
455	455	28 employer's schools reside. The public hearing may begin not earlier
456	456	29 than November 15 in the first year of the state budget biennium and
457	457	30 must be concluded by February 15 of the calendar year after the start
458	458	31 of formal collective bargaining.
459	459	32 (f) The factfinding process may not exceed thirty (30) days from
460	460	33 beginning to end, and not more than two (2) of those days may be used
461	461	34 for public testimony, which may be taken at the discretion of the
462	462	35 factfinder. During the public hearing, each party shall present fully its
463	463	36 last, best offer, including the fiscal rationale for the offer. Only
464	464	37 education fund revenue and, for a school employer for which the voters
465	465	38 have passed an operating referendum tax levy under IC 20-46-1 or a
466	466	39 school safety referendum tax levy under IC 20-46-9, the amount of
467	467	40 revenue certified by the department of local government finance,
468	468	41 excluding money distributed to a charter school or transferee
469	469	42 school corporation from a levy resulting from a resolution to place
470	470	2023 IN 1607—LS 7216/DI 116 11
471	471	1 a referendum on the ballot that is adopted by the governing body
472	472	2 under IC 20-46-1-8, IC 20-46-1-8.5, IC 20-46-9-6, or IC 20-46-9-7
473	473	3 after June 30, 2023, may be considered a source of the funding for
474	474	4 items. Money estimated to be or actually transferred from the school
475	475	5 corporation's operations fund to its education fund may not be
476	476	6 considered a source of funding for items.
477	477	7 (g) The factfinder shall make a recommendation as to the settlement
478	478	8 of the disputes over which the factfinder has jurisdiction.
479	479	9 (h) The factfinder shall:
480	480	10 (1) make the investigation, hearing, and findings as expeditiously
481	481	11 as the circumstances permit; and
482	482	12 (2) deliver the findings to the parties and to the board.
483	483	13 (i) The board, after receiving the findings and recommendations,
484	484	14 may make additional findings and recommendations to the parties
485	485	15 based on information in:
486	486	16 (1) the report; or
487	487	17 (2) the board's own possession.
488	488	18 The board may not make any recommendations to the parties related to
489	489	19 any items not specifically identified in IC 20-29-6-4.
490	490	20 (j) At any time within five (5) days after the findings and
491	491	21 recommendations are delivered to the board, the board may make the
492	492	22 findings and recommendations of the factfinder and the board's
493	493	23 additional findings and recommendations, if any, available to the
494	494	24 public through news media and other means the board considers
495	495	25 effective.
496	496	26 (k) The board shall make the findings and recommendations
497	497	27 described in subsection (j) available to the public not later than ten (10)
498	498	28 days after the findings and recommendations are delivered to the board.
499	499	29 SECTION 9. IC 20-40-3-5, AS AMENDED BY P.L.154-2020,
500	500	30 SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
501	501	31 JULY 1, 2023]: Sec. 5. (a) Money in the fund may be used for any
502	502	32 lawful school expenses, including making a transfer to the school
503	503	33 corporation's education fund (IC 20-40-2) or operations fund (IC
504	504	34 20-40-18).
505	505	35 (b) This subsection applies to a levy resulting from a resolution
506	506	36 to place a referendum on the ballot that is adopted by the
507	507	37 governing body under IC 20-46-1-8 or IC 20-46-1-8.5 before July
508	508	38 1, 2023. A school corporation may distribute proceeds of a tax levy
509	509	39 collected under IC 20-46-1 that is transferred to the school
510	510	40 corporation's education fund to a charter school, excluding a virtual
511	511	41 charter school, that is located within the attendance area of the school
512	512	42 corporation.
513	513	2023 IN 1607—LS 7216/DI 116 12
514	514	1 SECTION 10. IC 20-40-20-6, AS AMENDED BY P.L.154-2020,
515	515	2 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
516	516	3 JULY 1, 2023]: Sec. 6. (a) Subject to subsections (c) and (d), money in
517	517	4 the fund may be used only for the following purposes:
518	518	5 (1) To employ or compensate a school resource officer or school
519	519	6 resource officers.
520	520	7 (2) To establish or fund a school safety office.
521	521	8 (3) To conduct a threat assessment of a school building.
522	522	9 (4) To create or update a school safety plan.
523	523	10 (5) To develop or update school emergency response systems.
524	524	11 (6) To purchase equipment to improve the safety of a school
525	525	12 building, school grounds, or school buses.
526	526	13 (7) To pay capital expenses to improve the safety of a school
527	527	14 building.
528	528	15 (8) To establish and administer programs to address youth
529	529	16 specific mental illness, addiction, anger management, bullying,
530	530	17 and school violence.
531	531	18 (9) To develop and administer professional development
532	532	19 programs for teachers, administrators, and other school employees
533	533	20 designed to improve school safety and reduce violence.
534	534	21 (b) This subsection applies to a levy resulting from a resolution
535	535	22 to place a referendum on the ballot adopted by the governing body
536	536	23 under IC 20-46-9-6 or IC 20-46-9-7 before July 1, 2023. A school
537	537	24 corporation may distribute, with the approval of the majority of
538	538	25 members of the governing body, a portion of the proceeds of a tax levy
539	539	26 collected under IC 20-46-9 that is deposited in the fund to a charter
540	540	27 school, excluding a virtual charter school, that is located within the
541	541	28 attendance area of the school corporation, to be used by the charter
542	542	29 school for the purposes described in subsection (a).
543	543	30 (c) Expenditures paid using money collected from the levy shall be
544	544	31 included in a school's safety plan.
545	545	32 (d) Local law enforcement shall participate in:
546	546	33 (1) development of a school safety plan;
547	547	34 (2) development or updates to school emergency response
548	548	35 systems; and
549	549	36 (3) determination of capital expenses that would improve the
550	550	37 safety of a school building.
551	551	38 (e) Money in the fund may be transferred to the school corporation's
552	552	39 education fund (IC 20-40-2), operations fund (IC 20-40-18), or school
553	553	40 safety referendum debt service fund (IC 20-40-21), as applicable, to
554	554	41 pay for expenditures listed in subsection (a).
555	555	42 SECTION 11. IC 20-46-1-8, AS AMENDED BY P.L.174-2022,
556	556	2023 IN 1607—LS 7216/DI 116 13
557	557	1 SECTION 51, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
558	558	2 JULY 1, 2023]: Sec. 8. (a) Subject to subsections (c), (d), and (e), (f),
559	559	3 and (g) and this chapter, the governing body of a school corporation
560	560	4 may adopt a resolution to place a referendum under this chapter on the
561	561	5 ballot for any of the following purposes:
562	562	6 (1) The governing body of the school corporation determines that
563	563	7 it cannot, in a calendar year, carry out its public educational duty
564	564	8 unless it imposes a referendum tax levy under this chapter.
565	565	9 (2) The governing body of the school corporation determines that
566	566	10 a referendum tax levy under this chapter should be imposed to
567	567	11 replace property tax revenue that the school corporation will not
568	568	12 receive because of the application of the credit under
569	569	13 IC 6-1.1-20.6.
570	570	14 (3) For a resolution adopted before July 1, 2023, the governing
571	571	15 body makes the determination required under subdivision (1) or
572	572	16 (2) and determines to share a portion of the referendum proceeds
573	573	17 with a charter school, excluding a virtual charter school, in the
574	574	18 manner prescribed in subsection (d). (e).
575	575	19 (b) A resolution for a referendum that is adopted after June 30,
576	576	20 2023, shall specify that a portion of the proceeds collected from the
577	577	21 proposed levy will be distributed to applicable charter schools and
578	578	22 transferee school corporations in the manner described under
579	579	23 section 21 of this chapter.
580	580	24 (b) (c) The governing body of the school corporation shall certify a
581	581	25 copy of the resolution to place a referendum on the ballot to the
582	582	26 following:
583	583	27 (1) The department of local government finance, including:
584	584	28 (A) the language for the question required by section 10 of this
585	585	29 chapter, or in the case of a resolution to extend a referendum
586	586	30 levy certified to the department of local government finance
587	587	31 after March 15, 2016, section 10.1 of this chapter; and
588	588	32 (B) a copy of the revenue spending plan adopted under
589	589	33 subsection (e). (g).
590	590	34 The language of the public question must include the estimated
591	591	35 average percentage increases certified by the county auditor under
592	592	36 section 10(e) or 10.1(f) of this chapter, as applicable. The
593	593	37 governing body of the school corporation shall also provide the
594	594	38 county auditor's certification described in section 10(e) or 10.1(f)
595	595	39 of this chapter, as applicable. The department of local government
596	596	40 finance shall post the values certified by the county auditor to the
597	597	41 department's Internet web site. website. The department shall
598	598	42 review the language for compliance with section 10 or 10.1 of this
599	599	2023 IN 1607—LS 7216/DI 116 14
600	600	1 chapter, whichever is applicable, and either approve or reject the
601	601	2 language. The department shall send its decision to the governing
602	602	3 body of the school corporation not more than ten (10) days after
603	603	4 the resolution is submitted to the department. If the language is
604	604	5 approved, the governing body of the school corporation shall
605	605	6 certify a copy of the resolution, including the language for the
606	606	7 question and the department's approval.
607	607	8 (2) The county fiscal body of each county in which the school
608	608	9 corporation is located (for informational purposes only).
609	609	10 (3) The circuit court clerk of each county in which the school
610	610	11 corporation is located.
611	611	12 (c) (d) If a school safety referendum tax levy under IC 20-46-9 has
612	612	13 been approved by the voters in a school corporation at any time in the
613	613	14 previous three (3) years, the school corporation may not:
614	614	15 (1) adopt a resolution to place a referendum under this chapter on
615	615	16 the ballot; or
616	616	17 (2) otherwise place a referendum under this chapter on the ballot.
617	617	18 (d) (e) This subsection applies to a resolution described in
618	618	19 subsection (a) that is adopted before July 1, 2023. The resolution
619	619	20 described in subsection (a) must indicate whether proceeds in the
620	620	21 school corporation's education fund collected from a tax levy under this
621	621	22 chapter will be used to provide a distribution to a charter school or
622	622	23 charter schools, excluding a virtual charter school, under IC 20-40-3-5
623	623	24 as well as the amount that will be distributed to the particular charter
624	624	25 school or charter schools. A school corporation may request from the
625	625	26 designated charter school or charter schools any financial
626	626	27 documentation necessary to demonstrate the financial need of the
627	627	28 charter school or charter schools.
628	628	29 (f) This subsection applies to a resolution described in
629	629	30 subsection (a) that is adopted after June 30, 2023. The resolution
630	630	31 described in subsection (a) shall include a projection of the amount
631	631	32 that the school corporation expects to be distributed to a particular
632	632	33 transferee school corporation and charter school, excluding virtual
633	633	34 charter schools or adult high schools, under section 21 of this
634	634	35 chapter. At least sixty (60) days before the resolution described in
635	635	36 subsection (a) is voted on by the governing body, the school
636	636	37 corporation shall contact the department to determine the number
637	637	38 of students in kindergarten through grade 12 who have legal
638	638	39 settlement in the school corporation but attend a transferee school
639	639	40 corporation or charter school, excluding virtual charter schools or
640	640	41 adult high schools, and who receive not more than fifty percent
641	641	42 (50%) virtual instruction. The department shall provide the school
642	642	2023 IN 1607—LS 7216/DI 116 15
643	643	1 corporation with the number of students with legal settlement in
644	644	2 the school corporation who attend a transferee school corporation
645	645	3 or charter school and who receive not more than fifty percent
646	646	4 (50%) virtual instruction, which shall be disaggregated for each
647	647	5 particular transferee school corporation and charter school,
648	648	6 excluding a virtual charter school or adult high school. The
649	649	7 projection may include an expected increase in charter schools
650	650	8 during the term the levy is imposed under this chapter. The
651	651	9 department of local government finance shall prescribe the manner
652	652	10 in which the projection shall be calculated. The governing body
653	653	11 shall take into consideration the projection when adopting the
654	654	12 revenue spending plan under subsection (g).
655	655	13 (e) (g) As part of the resolution described in subsection (a), the
656	656	14 governing body of the school corporation shall adopt a revenue
657	657	15 spending plan for the proposed referendum tax levy that includes:
658	658	16 (1) an estimate of the amount of annual revenue expected to be
659	659	17 collected if a levy is imposed under this chapter;
660	660	18 (2) the specific purposes for which the revenue collected from a
661	661	19 levy imposed under this chapter will be used; and
662	662	20 (3) an estimate of the annual dollar amounts that will be expended
663	663	21 for each purpose described in subdivision (2); and
664	664	22 (4) for a resolution for a referendum that is adopted after
665	665	23 June 30, 2023, the projected revenue that shall be distributed
666	666	24 to charter schools or transferee school corporations as
667	667	25 provided in subsection (f). The revenue spending plan shall
668	668	26 also take into consideration deviations in the proposed
669	669	27 revenue spending plan if the actual charter school and
670	670	28 transferee school corporation distributions exceed or are
671	671	29 lower than the projected charter school and transferee school
672	672	30 corporation distributions described in subsection (f).
673	673	31 (f) (h) A school corporation shall specify in its proposed budget the
674	674	32 school corporation's revenue spending plan adopted under subsection
675	675	33 (e) (g) and annually present the revenue spending plan at its public
676	676	34 hearing on the proposed budget under IC 6-1.1-17-3.
677	677	35 SECTION 12. IC 20-46-1-8.5, AS ADDED BY P.L.138-2016,
678	678	36 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
679	679	37 JULY 1, 2023]: Sec. 8.5. (a) A resolution to extend a referendum levy
680	680	38 must be:
681	681	39 (1) adopted by the governing body of a school corporation; and
682	682	40 (2) approved in a referendum under this chapter;
683	683	41 before December 31 of the final calendar year in which the school
684	684	42 corporation's previously approved referendum levy is imposed under
685	685	2023 IN 1607—LS 7216/DI 116 16
686	686	1 this chapter.
687	687	2 (b) For a resolution adopted under this section after June 30,
688	688	3 2023, the resolution must include the projected charter school and
689	689	4 transferee school corporation distributions described in section 8(f)
690	690	5 of this chapter and indicate the distributions to applicable charter
691	691	6 schools and transferee school corporations in accordance with
692	692	7 section 21 of this chapter.
693	693	8 SECTION 13. IC 20-46-1-10, AS AMENDED BY P.L.174-2022,
694	694	9 SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
695	695	10 JULY 1, 2023]: Sec. 10. (a) This section does not apply to a
696	696	11 referendum on a resolution certified to the department of local
697	697	12 government finance after March 15, 2016, to extend a referendum levy.
698	698	13 (b) The question to be submitted to the voters in the referendum
699	699	14 must read as follows:
700	700	15 "Shall the school corporation increase property taxes paid to the
701	701	16 school corporation schools by homeowners and businesses for
702	702	17 _____ (insert number of years) years immediately following the
703	703	18 holding of the referendum for the purpose of funding ______
704	704	19 (insert short description of purposes)? If this public question is
705	705	20 approved by the voters, the average property tax paid to the
706	706	21 school corporation schools per year on a residence would increase
707	707	22 by ______% (insert the estimated average percentage of property
708	708	23 tax increase paid to the school corporation schools on a residence
709	709	24 within the school corporation as determined under subsection (c))
710	710	25 and the average property tax paid to the school corporation
711	711	26 schools per year on a business property would increase by
712	712	27 ______% (insert the estimated average percentage of property tax
713	713	28 increase paid to the school corporation schools on a business
714	714	29 property within the school corporation as determined under
715	715	30 subsection (d)). The most recent property tax referendum
716	716	31 proposed by the school corporation was held in ______ (insert
717	717	32 year) and ________ (insert whether the measure passed or
718	718	33 failed).".
719	719	34 (c) At the request of the governing body of a school corporation that
720	720	35 proposes to impose property taxes under this chapter, the county
721	721	36 auditor of the county in which the school corporation is located shall
722	722	37 determine the estimated average percentage of property tax increase on
723	723	38 a homestead to be paid to the school corporation schools that must be
724	724	39 included in the public question under subsection (b) as follows:
725	725	40 STEP ONE: Determine the average assessed value of a homestead
726	726	41 located within the school corporation.
727	727	42 STEP TWO: For purposes of determining the net assessed value
728	728	2023 IN 1607—LS 7216/DI 116 17
729	729	1 of the average homestead located within the school corporation,
730	730	2 subtract:
731	731	3 (A) an amount for the homestead standard deduction under
732	732	4 IC 6-1.1-12-37 as if the homestead described in STEP ONE
733	733	5 was eligible for the deduction; and
734	734	6 (B) an amount for the supplemental homestead deduction
735	735	7 under IC 6-1.1-12-37.5 as if the homestead described in STEP
736	736	8 ONE was eligible for the deduction;
737	737	9 from the result of STEP ONE.
738	738	10 STEP THREE: Divide the result of STEP TWO by one hundred
739	739	11 (100).
740	740	12 STEP FOUR: Determine the overall average tax rate per one
741	741	13 hundred dollars ($100) of assessed valuation for the current year
742	742	14 imposed on property located within the school corporation.
743	743	15 STEP FIVE: For purposes of determining net property tax liability
744	744	16 of the average homestead located within the school corporation:
745	745	17 (A) multiply the result of STEP THREE by the result of STEP
746	746	18 FOUR; and
747	747	19 (B) as appropriate, apply any currently applicable county
748	748	20 property tax credit rates and the credit for excessive property
749	749	21 taxes under IC 6-1.1-20.6-7.5(a)(1).
750	750	22 STEP SIX: Determine the amount of the school corporation's part
751	751	23 of the result determined in STEP FIVE.
752	752	24 STEP SEVEN: Multiply:
753	753	25 (A) the tax rate that will be imposed if the public question is
754	754	26 approved by the voters; by
755	755	27 (B) the result of STEP THREE.
756	756	28 STEP EIGHT: Divide the result of STEP SEVEN by the result of
757	757	29 STEP SIX, expressed as a percentage.
758	758	30 (d) At the request of the governing body of a school corporation that
759	759	31 proposes to impose property taxes under this chapter, the county
760	760	32 auditor of the county in which the school corporation is located shall
761	761	33 determine the estimated average percentage of property tax increase on
762	762	34 a business property to be paid to the school corporation schools that
763	763	35 must be included in the public question under subsection (b) as
764	764	36 follows:
765	765	37 STEP ONE: Determine the average assessed value of business
766	766	38 property located within the school corporation.
767	767	39 STEP TWO: Divide the result of STEP ONE by one hundred
768	768	40 (100).
769	769	41 STEP THREE: Determine the overall average tax rate per one
770	770	42 hundred dollars ($100) of assessed valuation for the current year
771	771	2023 IN 1607—LS 7216/DI 116 18
772	772	1 imposed on property located within the school corporation.
773	773	2 STEP FOUR: For purposes of determining net property tax
774	774	3 liability of the average business property located within the school
775	775	4 corporation:
776	776	5 (A) multiply the result of STEP TWO by the result of STEP
777	777	6 THREE; and
778	778	7 (B) as appropriate, apply any currently applicable county
779	779	8 property tax credit rates and the credit for excessive property
780	780	9 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
781	781	10 was three percent (3%).
782	782	11 STEP FIVE: Determine the amount of the school corporation's
783	783	12 part of the result determined in STEP FOUR.
784	784	13 STEP SIX: Multiply:
785	785	14 (A) the result of STEP TWO; by
786	786	15 (B) the tax rate that will be imposed if the public question is
787	787	16 approved by the voters.
788	788	17 STEP SEVEN: Divide the result of STEP SIX by the result of
789	789	18 STEP FIVE, expressed as a percentage.
790	790	19 (e) The county auditor shall certify the estimated average percentage
791	791	20 of property tax increase on a homestead to be paid to the school
792	792	21 corporation schools determined under subsection (c), and the estimated
793	793	22 average percentage of property tax increase on a business property to
794	794	23 be paid to the school corporation schools determined under subsection
795	795	24 (d), in a manner prescribed by the department of local government
796	796	25 finance, and provide the certification to the governing body of the
797	797	26 school corporation that proposes to impose property taxes.
798	798	27 SECTION 14. IC 20-46-1-19.5, AS AMENDED BY P.L.272-2019,
799	799	28 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
800	800	29 JULY 1, 2023]: Sec. 19.5. (a) Subject to section 8(c) 8(d) of this
801	801	30 chapter, if a referendum is approved by the voters in a school
802	802	31 corporation under this chapter in a calendar year, another referendum
803	803	32 may not be placed on the ballot in the school corporation under this
804	804	33 chapter in the following calendar year.
805	805	34 (b) Notwithstanding any other provision of this chapter and in
806	806	35 addition to the restriction specified in subsection (a), if a school
807	807	36 corporation imposes in a calendar year a referendum levy approved in
808	808	37 a referendum under this chapter, the school corporation may not
809	809	38 simultaneously impose in that calendar year more than one (1)
810	810	39 additional referendum levy approved in a subsequent referendum under
811	811	40 this chapter.
812	812	41 SECTION 15. IC 20-46-1-20, AS ADDED BY P.L.198-2011,
813	813	42 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
814	814	2023 IN 1607—LS 7216/DI 116 19
815	815	1 JULY 1, 2023]: Sec. 20. (a) Except as otherwise provided in this
816	816	2 section, during the period beginning with the adoption of a resolution
817	817	3 by the governing body of a school corporation to place a referendum
818	818	4 under this chapter on the ballot and continuing through the day on
819	819	5 which the referendum is submitted to the voters, the school corporation
820	820	6 may not promote a position on the referendum by doing any of the
821	821	7 following:
822	822	8 (1) Using facilities or equipment, including mail and messaging
823	823	9 systems, owned by the school corporation to promote a position
824	824	10 on the referendum, unless equal access to the facilities or
825	825	11 equipment is given to persons with a position opposite to that of
826	826	12 the school corporation.
827	827	13 (2) Making an expenditure of money from a fund controlled by
828	828	14 the school corporation to promote a position on the referendum.
829	829	15 (3) Using an employee to promote a position on the referendum
830	830	16 during the employee's normal working hours or paid overtime, or
831	831	17 otherwise compelling an employee to promote a position on the
832	832	18 referendum at any time. However, if a person described in
833	833	19 subsection (d) is advocating for or against a position on the
834	834	20 referendum or discussing the referendum as authorized under
835	835	21 subsection (d), an employee of the school corporation may assist
836	836	22 the person in presenting information on the referendum, if
837	837	23 requested to do so by the person described in subsection (d).
838	838	24 (4) Promoting a position on the referendum by:
839	839	25 (A) using students to transport written materials to their
840	840	26 residences or in any way involving students in a school
841	841	27 organized promotion of a position;
842	842	28 (B) including a statement within another communication sent
843	843	29 to the students' residences; or
844	844	30 (C) initiating discussion of the referendum at a meeting
845	845	31 between a teacher and parents of a student regarding the
846	846	32 student's performance or behavior at school. However, if the
847	847	33 parents initiate a discussion of the referendum at the meeting,
848	848	34 the teacher may acknowledge the issue and direct the parents
849	849	35 to a source of factual information on the referendum.
850	850	36 However, this section does not prohibit an official or employee of the
851	851	37 school corporation from carrying out duties with respect to a
852	852	38 referendum that are part of the normal and regular conduct of the
853	853	39 official's or employee's office or agency, including the furnishing of
854	854	40 factual information regarding the referendum in response to inquiries
855	855	41 from any person.
856	856	42 (b) The staff and employees of a school corporation may not
857	857	2023 IN 1607—LS 7216/DI 116 20
858	858	1 personally identify a student as the child of a parent or guardian who
859	859	2 supports or opposes the referendum.
860	860	3 (c) This subsection does not apply to:
861	861	4 (1) a personal expenditure to promote a position on a local public
862	862	5 question by an employee of a school corporation whose
863	863	6 employment is governed by a collective bargaining contract or an
864	864	7 employment contract; or
865	865	8 (2) an expenditure to promote a position on a local public
866	866	9 question by a person or an organization that has a contract or an
867	867	10 arrangement (whether formal or informal) with the school
868	868	11 corporation solely for the use of the school corporation's facilities.
869	869	12 A person or an organization that has a contract or arrangement
870	870	13 (whether formal or informal) with a school corporation to provide
871	871	14 goods or services to the school corporation may not spend any money
872	872	15 to promote a position on the petition or remonstrance. A person or an
873	873	16 organization that violates this subsection commits a Class A infraction.
874	874	17 (d) Notwithstanding any other law, an elected or appointed school
875	875	18 board member or a school corporation superintendent, school
876	876	19 corporation assistant superintendent, or chief school business official
877	877	20 of a school corporation may at any time:
878	878	21 (1) personally advocate for or against a position on a referendum;
879	879	22 or
880	880	23 (2) discuss the referendum with any individual, group, or
881	881	24 organization or personally advocate for or against a position on a
882	882	25 referendum before any individual, group, or organization;
883	883	26 so long as it is not done by using public funds. Advocacy or discussion
884	884	27 allowed under this subsection is not considered a use of public funds.
885	885	28 However, this subsection does not authorize or apply to advocacy or
886	886	29 discussion by a school board member, superintendent, assistant
887	887	30 superintendent, or school business official to or with students that
888	888	31 occurs during the regular school day.
889	889	32 (e) A student may use school equipment or facilities to report or
890	890	33 editorialize about a local public question as part of the news coverage
891	891	34 of the referendum by a student newspaper or broadcast.
892	892	35 (f) A transferee school corporation that may receive money
893	893	36 from a school corporation's tax levy under this chapter may not
894	894	37 promote a position on a referendum in the same manner as a
895	895	38 school corporation is prohibited from promoting a position on a
896	896	39 referendum.
897	897	40 SECTION 16. IC 20-46-1-21 IS ADDED TO THE INDIANA
898	898	41 CODE AS A NEW SECTION TO READ AS FOLLOWS
899	899	42 [EFFECTIVE JULY 1, 2023]: Sec. 21. (a) This section applies to
900	900	2023 IN 1607—LS 7216/DI 116 21
901	901	1 revenue received from a resolution that is approved by the
902	902	2 governing body to impose a referendum levy under section 8 or 8.5
903	903	3 of this chapter after June 30, 2023.
904	904	4 (b) The county auditor in which the school corporation is
905	905	5 located shall distribute an amount under subsection (d) to each
906	906	6 charter school or transferee school corporation that a student who
907	907	7 resides within the attendance area of the school corporation
908	908	8 attends. The department shall provide the county auditor with data
909	909	9 and information necessary for the county auditor to determine:
910	910	10 (1) which charter schools and transferee school corporations
911	911	11 are eligible to receive a distribution under this section; and
912	912	12 (2) the number of students who reside within the attendance
913	913	13 area of the school corporation who are included in the ADM
914	914	14 for each charter school or transferee school corporation
915	915	15 described in subdivision (1).
916	916	16 (c) The following schools are not eligible to receive a
917	917	17 distribution under this section:
918	918	18 (1) A virtual charter school.
919	919	19 (2) An adult high school.
920	920	20 (d) Except as provided in subsection (e), the amount that the
921	921	21 county auditor shall distribute to a charter school or transferee
922	922	22 school corporation under this section is the amount determined in
923	923	23 the last STEP of the following STEPS:
924	924	24 STEP ONE: Determine, for each charter school or transferee
925	925	25 school corporation that is eligible to receive a distribution
926	926	26 under this section, the number of students who reside within
927	927	27 the attendance area of the school corporation who are
928	928	28 currently included in the ADM of the charter school or
929	929	29 transferee school corporation.
930	930	30 STEP TWO: Determine the sum of:
931	931	31 (A) the current ADM count for the school corporation;
932	932	32 plus
933	933	33 (B) the STEP ONE amount.
934	934	34 STEP THREE: Determine the result of:
935	935	35 (A) the STEP ONE amount; divided by
936	936	36 (B) the STEP TWO amount.
937	937	37 STEP FOUR: Determine the result of:
938	938	38 (A) the STEP THREE amount; multiplied by
939	939	39 (B) the amount collected by the county auditor during the
940	940	40 most recent installment period.
941	941	41 (e) The total amount of money distributed to applicable charter
942	942	42 schools and transferee school corporations under this section for
943	943	2023 IN 1607—LS 7216/DI 116 22
944	944	1 a particular year may not exceed one hundred ten percent (110%)
945	945	2 of the total amount of money that is projected to be distributed to
946	946	3 all applicable charter schools or transferee school corporations
947	947	4 under section 8(f) of this chapter for that particular year. If the
948	948	5 total amount of money to be distributed to charter schools and
949	949	6 transferee school corporations for a particular year exceeds one
950	950	7 hundred ten percent (110%) of the amount projected to be
951	951	8 distributed to all applicable charter schools and transferee school
952	952	9 corporations under section 8(f) of this chapter, the amount that is
953	953	10 actually distributed to each charter school and transferee school
954	954	11 corporation under subsection (d) shall be proportionately reduced
955	955	12 so that the total amount of money distributed to all applicable
956	956	13 charter schools and transferee school corporations during that
957	957	14 particular year equals an amount determined under the last STEP
958	958	15 of the following STEPS:
959	959	16 STEP ONE: Determine the amount projected to be
960	960	17 distributed to all applicable charter schools and transferee
961	961	18 school corporations under section 8(f) of this chapter for that
962	962	19 particular year.
963	963	20 STEP TWO: Multiply the STEP ONE amount by ten percent
964	964	21 (10%).
965	965	22 STEP THREE: Add the STEP TWO amount to the STEP
966	966	23 ONE amount.
967	967	24 SECTION 17. IC 20-46-8-11 IS ADDED TO THE INDIANA
968	968	25 CODE AS A NEW SECTION TO READ AS FOLLOWS
969	969	26 [EFFECTIVE JANUARY 1, 2024]: Sec. 11. (a) This section applies
970	970	27 only to revenue collected after December 31, 2023, from a tax levy
971	971	28 imposed under this chapter.
972	972	29 (b) Subject to subsection (c), the county auditor shall distribute,
973	973	30 as provided under subsection (f), an amount of revenue received
974	974	31 from a tax levy imposed by a school corporation under this chapter
975	975	32 to each:
976	976	33 (1) charter school that a student who receives not more than
977	977	34 fifty percent (50%) virtual instruction and who has legal
978	978	35 settlement in the school corporation attends; and
979	979	36 (2) transferee school corporation that a transferred student
980	980	37 who has legal settlement in the school corporation attends.
981	981	38 (c) The following schools are not eligible to receive a
982	982	39 distribution under this section:
983	983	40 (1) A virtual charter school.
984	984	41 (2) An adult high school.
985	985	42 (d) Not later than thirty (30) days before the date that the
986	986	2023 IN 1607—LS 7216/DI 116 23
987	987	1 county auditor distributes money for the school corporation's
988	988	2 operations fund (IC 20-40-18) under IC 6-1.1-27, the department
989	989	3 shall determine the corresponding percentages of revenue received
990	990	4 from the tax levy that must be distributed among the school
991	991	5 corporation, each eligible charter school, and each eligible
992	992	6 transferee school corporation according to the following formula:
993	993	7 STEP ONE: Determine each:
994	994	8 (A) charter school that a student who receives not more
995	995	9 than fifty percent (50%) virtual instruction and who has
996	996	10 legal settlement in the school corporation attends; and
997	997	11 (B) transferee school corporation that a transferred
998	998	12 student who has legal settlement in the school corporation
999	999	13 attends.
1000	1000	14 STEP TWO: Determine, for each:
1001	1001	15 (A) charter school described in clause (A) of STEP ONE,
1002	1002	16 the number of students who:
1003	1003	17 (i) have legal settlement within the school corporation;
1004	1004	18 (ii) are currently included in the ADM for the charter
1005	1005	19 school; and
1006	1006	20 (iii) receive not more than fifty percent (50%) virtual
1007	1007	21 instruction; and
1008	1008	22 (B) transferee school corporation described in clause (B) of
1009	1009	23 STEP ONE, the number of students who:
1010	1010	24 (i) have legal settlement within the school corporation;
1011	1011	25 and
1012	1012	26 (ii) are currently included in the ADM for the transferee
1013	1013	27 school corporation.
1014	1014	28 STEP THREE: Determine the sum of:
1015	1015	29 (A) the aggregate of the STEP TWO results for all
1016	1016	30 applicable charter schools and all applicable transferee
1017	1017	31 school corporations; plus
1018	1018	32 (B) the current ADM count for the school corporation.
1019	1019	33 STEP FOUR: For each charter school described in clause (A)
1020	1020	34 of STEP ONE and each transferee school corporation
1021	1021	35 described in clause (B) of STEP ONE, determine the result of:
1022	1022	36 (A) the applicable STEP TWO amount; divided by
1023	1023	37 (B) the STEP THREE amount;
1024	1024	38 expressed as a percentage.
1025	1025	39 STEP FIVE: Determine the sum of all of the amounts
1026	1026	40 computed under STEP FOUR and subtract the result from
1027	1027	41 one hundred percent (100%).
1028	1028	42 (e) The department shall provide:
1029	1029	2023 IN 1607—LS 7216/DI 116 24
1030	1030	1 (1) each charter school determined under STEP ONE of
1031	1031	2 subsection (d) and the charter school's corresponding
1032	1032	3 percentage calculated under STEP FOUR of subsection (d);
1033	1033	4 (2) each transferee school corporation determined under
1034	1034	5 STEP ONE of subsection (d) and the transferee school
1035	1035	6 corporation's corresponding percentage calculated under
1036	1036	7 STEP FOUR of subsection (d); and
1037	1037	8 (3) the percentage calculated under STEP FIVE of subsection
1038	1038	9 (d) for the school corporation;
1039	1039	10 to the county auditor in the form prescribed by the county auditor.
1040	1040	11 (f) The county auditor shall distribute to the school corporation,
1041	1041	12 each applicable charter school, and each applicable transferee
1042	1042	13 school corporation the amount determined in the last STEP of the
1043	1043	14 following STEPS:
1044	1044	15 STEP ONE: For the school corporation, each applicable
1045	1045	16 charter school, and each applicable transferee school
1046	1046	17 corporation, determine the result of:
1047	1047	18 (A) in the case of:
1048	1048	19 (i) an applicable charter school, the applicable
1049	1049	20 percentage under STEP FOUR of subsection (d);
1050	1050	21 (ii) an applicable transferee school corporation, the
1051	1051	22 applicable percentage under STEP FOUR of subsection
1052	1052	23 (d); and
1053	1053	24 (iii) the school corporation, the applicable percentage
1054	1054	25 under STEP FIVE of subsection (d); multiplied by
1055	1055	26 (B) the amount collected by the county treasurer during
1056	1056	27 the most recent installment period.
1057	1057	28 STEP TWO: Determine the result of the following:
1058	1058	29 (A) For distributions made in 2024, an amount equal to:
1059	1059	30 (i) in the case of each applicable charter school and each
1060	1060	31 applicable transferee school corporation, thirty-three
1061	1061	32 and thirty-three hundredths percent (33.33%) of the
1062	1062	33 STEP ONE amount; and
1063	1063	34 (ii) in the case of the school corporation, the amount
1064	1064	35 collected by the county treasurer during the most recent
1065	1065	36 installment period that remains after subtracting each of
1066	1066	37 the amounts to be distributed to applicable charter
1067	1067	38 schools and applicable transferee school corporations
1068	1068	39 under item (i).
1069	1069	40 (B) For distributions made in 2025, an amount equal to:
1070	1070	41 (i) in the case of each applicable charter school and each
1071	1071	42 applicable transferee school corporation, sixty-six and
1072	1072	2023 IN 1607—LS 7216/DI 116 25
1073	1073	1 sixty-seven hundredths percent (66.67%) of the STEP
1074	1074	2 ONE amount; and
1075	1075	3 (ii) in the case of the school corporation, the amount
1076	1076	4 collected by the county treasurer during the most recent
1077	1077	5 installment period that remains after subtracting each of
1078	1078	6 the amounts to be distributed to applicable charter
1079	1079	7 schools and applicable transferee school corporations,
1080	1080	8 under item (i).
1081	1081	9 (C) For distributions made in 2026 and each year
1082	1082	10 thereafter, an amount equal to:
1083	1083	11 (i) in the case of the school corporation, one hundred
1084	1084	12 percent (100%);
1085	1085	13 (ii) in the case of each applicable charter school, one
1086	1086	14 hundred percent (100%); and
1087	1087	15 (iii) in the case of each transferee school corporation, one
1088	1088	16 hundred percent (100%);
1089	1089	17 of the STEP ONE amount determined for the school
1090	1090	18 corporation, the applicable charter school, and the
1091	1091	19 applicable transferee school corporation.
1092	1092	20 SECTION 18. IC 20-46-9-6, AS AMENDED BY P.L.174-2022,
1093	1093	21 SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1094	1094	22 JULY 1, 2023]: Sec. 6. (a) Subject to this chapter, the governing body
1095	1095	23 of a school corporation may adopt a resolution to place a referendum
1096	1096	24 under this chapter on the ballot if the governing body of the school
1097	1097	25 corporation determines that a referendum levy should be imposed for
1098	1098	26 measures to improve school safety as described in IC 20-40-20-6(a) or
1099	1099	27 IC 20-40-20-6(b).
1100	1100	28 (b) This subsection applies to a resolution described in
1101	1101	29 subsection (a) that is adopted before July 1, 2023. A school
1102	1102	30 corporation may, with the approval of the majority of members of the
1103	1103	31 governing body, distribute a portion of the proceeds of a tax levy
1104	1104	32 collected under this chapter that is deposited in the fund to a charter
1105	1105	33 school, excluding a virtual charter school, that is located within the
1106	1106	34 attendance area of the school corporation, to be used by the charter
1107	1107	35 school for the purposes described in IC 20-40-20-6(a).
1108	1108	36 (c) This subsection applies to a resolution described in
1109	1109	37 subsection (a) that is adopted after June 30, 2023. A resolution
1110	1110	38 shall specify that a portion of the proceeds of the proposed levy will
1111	1111	39 be distributed to applicable charter schools or transferee school
1112	1112	40 corporations in the manner described under section 22 of this
1113	1113	41 chapter.
1114	1114	42 (d) This subsection applies to a resolution described in
1115	1115	2023 IN 1607—LS 7216/DI 116 26
1116	1116	1 subsection (a) that is adopted after June 30, 2023. The resolution
1117	1117	2 described in subsection (a) shall include a projection of the amount
1118	1118	3 that the school corporation expects to be distributed to a particular
1119	1119	4 transferee school corporation or charter school, excluding virtual
1120	1120	5 charter schools or adult high schools, under section 22 of this
1121	1121	6 chapter. At least sixty (60) days before the resolution described in
1122	1122	7 subsection (a) is voted on by the governing body, the school
1123	1123	8 corporation shall contact the department to determine the number
1124	1124	9 of students in kindergarten through grade 12 who have legal
1125	1125	10 settlement in the school corporation but attend a transferee school
1126	1126	11 corporation or charter school, excluding virtual charter schools or
1127	1127	12 adult high schools, and who receive not more than fifty percent
1128	1128	13 (50%) virtual instruction. The department shall provide the school
1129	1129	14 corporation with the number of students with legal settlement in
1130	1130	15 the school corporation who attend a transferee school corporation
1131	1131	16 or charter school, which shall be disaggregated for each particular
1132	1132	17 transferee school corporation and charter school, excluding a
1133	1133	18 virtual charter school or adult high school. The projection may
1134	1134	19 include an expected increase in charter schools during the term the
1135	1135	20 levy is imposed. The department of local government finance shall
1136	1136	21 prescribe the manner in which the projection shall be calculated.
1137	1137	22 The governing body shall take into consideration the projection
1138	1138	23 when adopting the revenue spending plan under subsection (g).
1139	1139	24 (c) (e) The governing body of the school corporation shall certify a
1140	1140	25 copy of the resolution to the following:
1141	1141	26 (1) The department of local government finance, including:
1142	1142	27 (A) the language for the question required by section 9 of this
1143	1143	28 chapter, or in the case of a resolution to extend a referendum
1144	1144	29 levy certified to the department of local government finance,
1145	1145	30 section 10 of this chapter; and
1146	1146	31 (B) a copy of the revenue spending plan adopted under
1147	1147	32 subsection (e). (g).
1148	1148	33 The language of the public question must include the estimated
1149	1149	34 average percentage increases certified by the county auditor under
1150	1150	35 section 9(d) or 10(f) of this chapter, as applicable. The governing
1151	1151	36 body of the school corporation shall also provide the county
1152	1152	37 auditor's certification described in section 9(d) or 10(f) of this
1153	1153	38 chapter, as applicable. The department of local government
1154	1154	39 finance shall post the values certified by the county auditor to the
1155	1155	40 department's Internet web site. website. The department shall
1156	1156	41 review the language for compliance with section 9 or 10 of this
1157	1157	42 chapter, whichever is applicable, and either approve or reject the
1158	1158	2023 IN 1607—LS 7216/DI 116 27
1159	1159	1 language. The department shall send its decision to the governing
1160	1160	2 body of the school corporation not more than ten (10) days after
1161	1161	3 the resolution is submitted to the department. If the language is
1162	1162	4 approved, the governing body of the school corporation shall
1163	1163	5 certify a copy of the resolution, including the language for the
1164	1164	6 question and the department's approval.
1165	1165	7 (2) The county fiscal body of each county in which the school
1166	1166	8 corporation is located (for informational purposes only).
1167	1167	9 (3) The circuit court clerk of each county in which the school
1168	1168	10 corporation is located.
1169	1169	11 (d) (f) This subsection applies to a resolution described in
1170	1170	12 subsection (a) that is adopted before July 1, 2023. The resolution
1171	1171	13 described in subsection (a) must indicate whether proceeds in the
1172	1172	14 school corporation's fund collected from a tax levy under this chapter
1173	1173	15 will be used to provide a distribution to a charter school or charter
1174	1174	16 schools, excluding a virtual charter school, under IC 20-40-20-6(b) as
1175	1175	17 well as the amount that will be distributed to the particular charter
1176	1176	18 school or charter schools. A school corporation may request from the
1177	1177	19 designated charter school or charter schools any financial
1178	1178	20 documentation necessary to demonstrate the financial need of the
1179	1179	21 charter school or charter schools.
1180	1180	22 (e) (g) As part of the resolution described in subsection (a), the
1181	1181	23 governing body of the school corporation shall adopt a revenue
1182	1182	24 spending plan for the proposed referendum tax levy that includes:
1183	1183	25 (1) an estimate of the amount of annual revenue expected to be
1184	1184	26 collected if a levy is imposed under this chapter;
1185	1185	27 (2) the specific purposes described in IC 20-40-20-6 for which the
1186	1186	28 revenue collected from a levy imposed under this chapter will be
1187	1187	29 used; and
1188	1188	30 (3) an estimate of the annual dollar amounts that will be expended
1189	1189	31 for each purpose described in subdivision (2); and
1190	1190	32 (4) for a resolution for a referendum that is adopted after
1191	1191	33 June 30, 2023, the projected revenue that shall be distributed
1192	1192	34 to charter schools or transferee school corporations as
1193	1193	35 provided in subsection (d). The revenue spending plan shall
1194	1194	36 also take into consideration deviations in the proposed
1195	1195	37 revenue spending plan if the actual charter school and
1196	1196	38 transferee school corporation distributions exceed or are
1197	1197	39 lower than the projected charter school and transferee school
1198	1198	40 corporation distributions described in subsection (d).
1199	1199	41 (f) (h) A school corporation shall specify in its proposed budget the
1200	1200	42 school corporation's revenue spending plan adopted under subsection
1201	1201	2023 IN 1607—LS 7216/DI 116 28
1202	1202	1 (e) (g) and annually present the revenue spending plan at its public
1203	1203	2 hearing on the proposed budget under IC 6-1.1-17-3.
1204	1204	3 SECTION 19. IC 20-46-9-7, AS ADDED BY P.L.272-2019,
1205	1205	4 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1206	1206	5 JULY 1, 2023]: Sec. 7. (a) A resolution to extend a referendum levy
1207	1207	6 must be:
1208	1208	7 (1) adopted by the governing body of a school corporation; and
1209	1209	8 (2) approved in a referendum under this chapter;
1210	1210	9 before December 31 of the final calendar year in which the school
1211	1211	10 corporation's previously approved referendum levy is imposed under
1212	1212	11 this chapter.
1213	1213	12 (b) For a resolution adopted under this section after June 30,
1214	1214	13 2023, the resolution must include the projected charter school and
1215	1215	14 transferee school corporation distributions described in section
1216	1216	15 6(d) of this chapter and indicate the distributions to applicable
1217	1217	16 charter schools and transferee school corporations in accordance
1218	1218	17 with section 22 of this chapter.
1219	1219	18 SECTION 20. IC 20-46-9-9, AS AMENDED BY P.L.174-2022,
1220	1220	19 SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1221	1221	20 JULY 1, 2023]: Sec. 9. (a) The question to be submitted to the voters
1222	1222	21 in the referendum must read as follows:
1223	1223	22 "Shall the school corporation increase property taxes paid to the
1224	1224	23 school corporation schools by homeowners and businesses for
1225	1225	24 _____ (insert number of years) years immediately following the
1226	1226	25 holding of the referendum for the purpose of funding ______
1227	1227	26 (insert short description of purposes)? If this public question is
1228	1228	27 approved by the voters, the average property tax paid to the
1229	1229	28 school corporation schools per year on a residence would increase
1230	1230	29 by ______% (insert the estimated average percentage of property
1231	1231	30 tax increase paid to the school corporation schools on a residence
1232	1232	31 within the school corporation as determined under subsection (b))
1233	1233	32 and the average property tax paid to the school corporation
1234	1234	33 schools per year on a business property would increase by
1235	1235	34 ______% (insert the estimated average percentage of property tax
1236	1236	35 increase paid to the school corporation schools on a business
1237	1237	36 property within the school corporation as determined under
1238	1238	37 subsection (c)). The most recent property tax referendum
1239	1239	38 proposed by the school corporation was held in ______ (insert
1240	1240	39 year) and ________ (insert whether the measure passed or
1241	1241	40 failed).".
1242	1242	41 (b) At the request of the governing body of a school corporation that
1243	1243	42 proposes to impose property taxes under this chapter, the county
1244	1244	2023 IN 1607—LS 7216/DI 116 29
1245	1245	1 auditor of the county in which the school corporation is located shall
1246	1246	2 determine the estimated average percentage of property tax increase on
1247	1247	3 a homestead to be paid to the school corporation that must be included
1248	1248	4 in the public question under subsection (a) as follows:
1249	1249	5 STEP ONE: Determine the average assessed value of a homestead
1250	1250	6 located within the school corporation.
1251	1251	7 STEP TWO: For purposes of determining the net assessed value
1252	1252	8 of the average homestead located within the school corporation,
1253	1253	9 subtract:
1254	1254	10 (A) an amount for the homestead standard deduction under
1255	1255	11 IC 6-1.1-12-37 as if the homestead described in STEP ONE
1256	1256	12 was eligible for the deduction; and
1257	1257	13 (B) an amount for the supplemental homestead deduction
1258	1258	14 under IC 6-1.1-12-37.5 as if the homestead described in STEP
1259	1259	15 ONE was eligible for the deduction;
1260	1260	16 from the result of STEP ONE.
1261	1261	17 STEP THREE: Divide the result of STEP TWO by one hundred
1262	1262	18 (100).
1263	1263	19 STEP FOUR: Determine the overall average tax rate per one
1264	1264	20 hundred dollars ($100) of assessed valuation for the current year
1265	1265	21 imposed on property located within the school corporation.
1266	1266	22 STEP FIVE: For purposes of determining net property tax liability
1267	1267	23 of the average homestead located within the school corporation:
1268	1268	24 (A) multiply the result of STEP THREE by the result of STEP
1269	1269	25 FOUR; and
1270	1270	26 (B) as appropriate, apply any currently applicable county
1271	1271	27 property tax credit rates and the credit for excessive property
1272	1272	28 taxes under IC 6-1.1-20.6-7.5(a)(1).
1273	1273	29 STEP SIX: Determine the amount of the school corporation's part
1274	1274	30 of the result determined in STEP FIVE.
1275	1275	31 STEP SEVEN: Multiply:
1276	1276	32 (A) the tax rate that will be imposed if the public question is
1277	1277	33 approved by the voters; by
1278	1278	34 (B) the result of STEP THREE.
1279	1279	35 STEP EIGHT: Divide the result of STEP SEVEN by the result of
1280	1280	36 STEP SIX, expressed as a percentage.
1281	1281	37 (c) At the request of the governing body of a school corporation that
1282	1282	38 proposes to impose property taxes under this chapter, the county
1283	1283	39 auditor of the county in which the school corporation is located shall
1284	1284	40 determine the estimated average percentage of property tax increase on
1285	1285	41 a business property to be paid to the school corporation that must be
1286	1286	42 included in the public question under subsection (a) as follows:
1287	1287	2023 IN 1607—LS 7216/DI 116 30
1288	1288	1 STEP ONE: Determine the average assessed value of business
1289	1289	2 property located within the school corporation.
1290	1290	3 STEP TWO: Divide the result of STEP ONE by one hundred
1291	1291	4 (100).
1292	1292	5 STEP THREE: Determine the overall average tax rate per one
1293	1293	6 hundred dollars ($100) of assessed valuation for the current year
1294	1294	7 imposed on property located within the school corporation.
1295	1295	8 STEP FOUR: For purposes of determining net property tax
1296	1296	9 liability of the average business property located within the school
1297	1297	10 corporation:
1298	1298	11 (A) multiply the result of STEP TWO by the result of STEP
1299	1299	12 THREE; and
1300	1300	13 (B) as appropriate, apply any currently applicable county
1301	1301	14 property tax credit rates and the credit for excessive property
1302	1302	15 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
1303	1303	16 was three percent (3%).
1304	1304	17 STEP FIVE: Determine the amount of the school corporation's
1305	1305	18 part of the result determined in STEP FOUR.
1306	1306	19 STEP SIX: Multiply:
1307	1307	20 (A) the result of STEP TWO; by
1308	1308	21 (B) the tax rate that will be imposed if the public question is
1309	1309	22 approved by the voters.
1310	1310	23 STEP SEVEN: Divide the result of STEP SIX by the result of
1311	1311	24 STEP FIVE, expressed as a percentage.
1312	1312	25 (d) The county auditor shall certify the estimated average
1313	1313	26 percentage of property tax increase on a homestead to be paid to the
1314	1314	27 school corporation schools determined under subsection (b), and the
1315	1315	28 estimated average percentage of property tax increase on a business
1316	1316	29 property to be paid to the school corporation schools determined under
1317	1317	30 subsection (c), in a manner prescribed by the department of local
1318	1318	31 government finance, and provide the certification to the governing
1319	1319	32 body of the school corporation that proposes to impose property taxes.
1320	1320	33 SECTION 21. IC 20-46-9-21, AS ADDED BY P.L.272-2019,
1321	1321	34 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1322	1322	35 JULY 1, 2023]: Sec. 21. (a) Except as otherwise provided in this
1323	1323	36 section, during the period beginning with the adoption of a resolution
1324	1324	37 by the governing body of a school corporation to place a referendum
1325	1325	38 under this chapter on the ballot and continuing through the day on
1326	1326	39 which the referendum is submitted to the voters, the school corporation
1327	1327	40 may not promote a position on the referendum by doing any of the
1328	1328	41 following:
1329	1329	42 (1) Using facilities or equipment, including mail and messaging
1330	1330	2023 IN 1607—LS 7216/DI 116 31
1331	1331	1 systems, owned by the school corporation to promote a position
1332	1332	2 on the referendum, unless equal access to the facilities or
1333	1333	3 equipment is given to persons with a position opposite to that of
1334	1334	4 the school corporation.
1335	1335	5 (2) Making an expenditure of money from a fund controlled by
1336	1336	6 the school corporation to promote a position on the referendum.
1337	1337	7 (3) Using an employee to promote a position on the referendum
1338	1338	8 during the employee's normal working hours or paid overtime, or
1339	1339	9 otherwise compelling an employee to promote a position on the
1340	1340	10 referendum at any time. However, if a person described in
1341	1341	11 subsection (d) is advocating for or against a position on the
1342	1342	12 referendum or discussing the referendum as authorized under
1343	1343	13 subsection (d), an employee of the school corporation may assist
1344	1344	14 the person in presenting information on the referendum, if
1345	1345	15 requested to do so by the person described in subsection (d).
1346	1346	16 (4) Promoting a position on the referendum by:
1347	1347	17 (A) using students to transport written materials to their
1348	1348	18 residences or in any way involving students in a school
1349	1349	19 organized promotion of a position;
1350	1350	20 (B) including a statement within another communication sent
1351	1351	21 to the students' residences; or
1352	1352	22 (C) initiating discussion of the referendum at a meeting
1353	1353	23 between a teacher and parents of a student regarding the
1354	1354	24 student's performance or behavior at school. However, if the
1355	1355	25 parents initiate a discussion of the referendum at the meeting,
1356	1356	26 the teacher may acknowledge the issue and direct the parents
1357	1357	27 to a source of factual information on the referendum.
1358	1358	28 However, this section does not prohibit an official or employee of the
1359	1359	29 school corporation from carrying out duties with respect to a
1360	1360	30 referendum that are part of the normal and regular conduct of the
1361	1361	31 official's or employee's office or agency, including the furnishing of
1362	1362	32 factual information regarding the referendum in response to inquiries
1363	1363	33 from any person.
1364	1364	34 (b) The staff and employees of a school corporation may not
1365	1365	35 personally identify a student as the child of a parent or guardian who
1366	1366	36 supports or opposes the referendum.
1367	1367	37 (c) This subsection does not apply to:
1368	1368	38 (1) a personal expenditure to promote a position on a local public
1369	1369	39 question by an employee of a school corporation whose
1370	1370	40 employment is governed by a collective bargaining contract or an
1371	1371	41 employment contract; or
1372	1372	42 (2) an expenditure to promote a position on a local public
1373	1373	2023 IN 1607—LS 7216/DI 116 32
1374	1374	1 question by a person or an organization that has a contract or an
1375	1375	2 arrangement (whether formal or informal) with the school
1376	1376	3 corporation solely for the use of the school corporation's facilities.
1377	1377	4 A person or an organization that has a contract or arrangement
1378	1378	5 (whether formal or informal) with a school corporation to provide
1379	1379	6 goods or services to the school corporation may not spend any money
1380	1380	7 to promote a position on the petition or remonstrance. A person or an
1381	1381	8 organization that violates this subsection commits a Class A infraction.
1382	1382	9 (d) Notwithstanding any other law, an elected or appointed school
1383	1383	10 board member or a school corporation superintendent, school
1384	1384	11 corporation assistant superintendent, or chief school business official
1385	1385	12 of a school corporation may at any time:
1386	1386	13 (1) personally advocate for or against a position on a referendum;
1387	1387	14 or
1388	1388	15 (2) discuss the referendum with any individual, group, or
1389	1389	16 organization or personally advocate for or against a position on a
1390	1390	17 referendum before any individual, group, or organization;
1391	1391	18 so long as it is not done by using public funds. Advocacy or discussion
1392	1392	19 allowed under this subsection is not considered a use of public funds.
1393	1393	20 However, this subsection does not authorize or apply to advocacy or
1394	1394	21 discussion by a school board member, superintendent, assistant
1395	1395	22 superintendent, or school business official to or with students that
1396	1396	23 occurs during the regular school day.
1397	1397	24 (e) A student may use school equipment or facilities to report or
1398	1398	25 editorialize about a local public question as part of the news coverage
1399	1399	26 of the referendum by a student newspaper or broadcast.
1400	1400	27 (f) This subsection applies to a levy resulting from a resolution
1401	1401	28 to place a referendum on the ballot adopted by the governing body
1402	1402	29 under section 6 or 7 of this chapter after June 30, 2023. A
1403	1403	30 transferee school corporation that may receive money from a
1404	1404	31 school corporation's tax levy under this chapter may not promote
1405	1405	32 a position on a referendum in the same manner as a school
1406	1406	33 corporation is prohibited from promoting a position on a
1407	1407	34 referendum.
1408	1408	35 SECTION 22. IC 20-46-9-22 IS ADDED TO THE INDIANA
1409	1409	36 CODE AS A NEW SECTION TO READ AS FOLLOWS
1410	1410	37 [EFFECTIVE JULY 1, 2023]: Sec. 22. (a) This section applies to
1411	1411	38 revenue received from a resolution that is approved by the
1412	1412	39 governing body to impose a referendum levy under section 6 or 7
1413	1413	40 of this chapter after June 30, 2023.
1414	1414	41 (b) The county auditor shall distribute an amount under
1415	1415	42 subsection (d) to each charter school or transferee school
1416	1416	2023 IN 1607—LS 7216/DI 116 33
1417	1417	1 corporation that a student who resides within the attendance area
1418	1418	2 of the school corporation attends. The department shall provide
1419	1419	3 the county auditor with data and information necessary for the
1420	1420	4 county auditor to determine:
1421	1421	5 (1) which charter schools or transferee school corporations
1422	1422	6 are eligible to receive a distribution under this section; and
1423	1423	7 (2) the number of students who reside within the attendance
1424	1424	8 area of the school corporation who are included in the ADM
1425	1425	9 for each charter school or transferee school corporation
1426	1426	10 described in subdivision (1).
1427	1427	11 (c) The following schools are not eligible to receive a
1428	1428	12 distribution under this section:
1429	1429	13 (1) A virtual charter school.
1430	1430	14 (2) An adult high school.
1431	1431	15 (d) Except as provided in subsection (e), the amount that the
1432	1432	16 county auditor shall distribute to a charter school or transferee
1433	1433	17 school corporation under this section is the amount determined in
1434	1434	18 the last STEP of the following STEPS:
1435	1435	19 STEP ONE: Determine, for each charter school and
1436	1436	20 transferee school corporation that is eligible to receive a
1437	1437	21 distribution under this section, the number of students who
1438	1438	22 reside within the attendance area of the school corporation
1439	1439	23 who are currently included in the ADM of the charter school
1440	1440	24 or transferee school corporation.
1441	1441	25 STEP TWO: Determine the sum of:
1442	1442	26 (A) the current ADM count for the school corporation;
1443	1443	27 plus
1444	1444	28 (B) the STEP ONE amount.
1445	1445	29 STEP THREE: Determine the result of:
1446	1446	30 (A) the STEP ONE amount; divided by
1447	1447	31 (B) the STEP TWO amount.
1448	1448	32 STEP FOUR: Determine the result of:
1449	1449	33 (A) the STEP THREE amount; multiplied by
1450	1450	34 (B) the amount collected by the county auditor during the
1451	1451	35 most recent installment period.
1452	1452	36 (e) If a charter school or transferee school corporation receives
1453	1453	37 a distribution under this section, the distribution may be used only
1454	1454	38 for the purposes described in IC 20-40-20-6(a).
1455	1455	39 (f) The total amount of money distributed to applicable charter
1456	1456	40 schools or transferee school corporations under this section for a
1457	1457	41 particular year may not exceed one hundred ten percent (110%) of
1458	1458	42 the total amount of money that is projected to be distributed to all
1459	1459	2023 IN 1607—LS 7216/DI 116 34
1460	1460	1 applicable charter schools or transferee school corporations under
1461	1461	2 section 6(d) of this chapter for that particular year. If the total
1462	1462	3 amount of money to be distributed to charter schools and
1463	1463	4 transferee school corporations for a particular year exceeds one
1464	1464	5 hundred ten percent (110%) of the amount projected to be
1465	1465	6 distributed to all applicable charter schools and transferee school
1466	1466	7 corporations under section 6(d) of this chapter, the amount that is
1467	1467	8 actually distributed to each charter school or transferee school
1468	1468	9 corporation under subsection (d) shall be proportionately reduced
1469	1469	10 so that the total amount of money distributed to all applicable
1470	1470	11 charter schools and transferee school corporations during that
1471	1471	12 particular year equals an amount determined under the last STEP
1472	1472	13 of the following STEPS:
1473	1473	14 STEP ONE: Determine the amount projected to be
1474	1474	15 distributed to all applicable charter schools and transferee
1475	1475	16 school corporations under section 6(d) of this chapter for that
1476	1476	17 particular year.
1477	1477	18 STEP TWO: Multiply the STEP ONE amount by ten percent
1478	1478	19 (10%).
1479	1479	20 STEP THREE: Add the STEP TWO amount to the STEP
1480	1480	21 ONE amount.
1481	1481	22 SECTION 23. IC 20-49-3-8, AS AMENDED BY P.L.211-2018(ss),
1482	1482	23 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1483	1483	24 JULY 1, 2023]: Sec. 8. The fund may be used to make advances:
1484	1484	25 (1) to school corporations, including school corporation career
1485	1485	26 and technical education schools described in IC 20-37-1-1, under
1486	1486	27 IC 20-49-4 and IC 20-49-5;
1487	1487	28 (2) to charter schools approved to obtain an advance under
1488	1488	29 IC 20-49-11-7;
1489	1489	30 (2) (3) under IC 20-49-6;
1490	1490	31 (3) (4) to charter and innovation network schools under
1491	1491	32 IC 20-49-9; and
1492	1492	33 (4) (5) to a school corporation or charter school (or a coalition of
1493	1493	34 public schools applying jointly) under IC 20-49-10.
1494	1494	35 Unless the context clearly requires otherwise, a reference to a school
1495	1495	36 corporation in this chapter includes a school corporation career and
1496	1496	37 technical education school described in IC 20-37-1-1. However, an
1497	1497	38 advance to a school corporation career and technical education school
1498	1498	39 described in IC 20-37-1-1 is not considered an advance to a school
1499	1499	40 corporation for purposes of determining if the school corporation career
1500	1500	41 and technical education school described in IC 20-37-1-1 qualifies for
1501	1501	42 an advance.
1502	1502	2023 IN 1607—LS 7216/DI 116 35
1503	1503	1 SECTION 24. IC 20-49-4-1, AS AMENDED BY P.L.233-2015,
1504	1504	2 SECTION 312, IS AMENDED TO READ AS FOLLOWS
1505	1505	3 [EFFECTIVE JULY 1, 2023]: Sec. 1. This chapter applies to:
1506	1506	4 (1) school corporations organized and formed through
1507	1507	5 reorganization under IC 20-23-4, IC 20-23-6, or IC 20-23-7; and
1508	1508	6 (2) school corporation career and technical education schools
1509	1509	7 described in IC 20-37-1-1; and
1510	1510	8 (3) charter schools approved to obtain an advance under
1511	1511	9 IC 20-49-11-7.
1512	1512	10 Unless the context clearly requires otherwise, a reference to a school
1513	1513	11 corporation in this chapter includes a school corporation career and
1514	1514	12 technical education school described in IC 20-37-1-1.
1515	1515	13 SECTION 25. IC 20-49-4-2, AS ADDED BY P.L.2-2006,
1516	1516	14 SECTION 172, IS AMENDED TO READ AS FOLLOWS
1517	1517	15 [EFFECTIVE JULY 1, 2023]: Sec. 2. Sections 9, 12, and 13 of this
1518	1518	16 chapter do not apply if a school corporation or charter school sustains
1519	1519	17 loss from a disaster.
1520	1520	18 SECTION 26. IC 20-49-4-3.5 IS ADDED TO THE INDIANA
1521	1521	19 CODE AS A NEW SECTION TO READ AS FOLLOWS
1522	1522	20 [EFFECTIVE JULY 1, 2023]: Sec. 3.5. (a) As used in this chapter,
1523	1523	21 "charter school" refers to a school established under IC 20-24.
1524	1524	22 (b) The term does not include the following:
1525	1525	23 (1) A virtual charter school (as defined in IC 20-24-1-10).
1526	1526	24 (2) An adult high school (as defined in IC 20-24-1-2.3).
1527	1527	25 SECTION 27. IC 20-49-4-7, AS AMENDED BY P.L.40-2014,
1528	1528	26 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1529	1529	27 JULY 1, 2023]: Sec. 7. (a) As used in this chapter, "school building
1530	1530	28 construction program" means the following:
1531	1531	29 (1) The purchase, lease, or financing of land, the construction and
1532	1532	30 equipping of school buildings, and the remodeling, repairing, or
1533	1533	31 improving of school buildings by a school corporation:
1534	1534	32 (1) (A) that sustained a loss from a disaster;
1535	1535	33 (2) (B) whose adjusted assessed valuation (as determined
1536	1536	34 under IC 6-1.1-34-8) per current ADM is within the lowest
1537	1537	35 forty percent (40%) of the assessed valuation per current ADM
1538	1538	36 when compared with all school corporation adjusted assessed
1539	1539	37 valuation (as adjusted (if applicable) under IC 6-1.1-34-8) per
1540	1540	38 current ADM; or
1541	1541	39 (3) (C) with an advance under this chapter outstanding on July
1542	1542	40 1, 1993, that bears interest of at least seven and one-half
1543	1543	41 percent (7.5%).
1544	1544	42 (2) The purchase, lease, or financing of land, the construction
1545	1545	2023 IN 1607—LS 7216/DI 116 36
1546	1546	1 and equipping of school buildings, and the remodeling,
1547	1547	2 repairing, or improving of school buildings by a charter
1548	1548	3 school approved to receive an advance under IC 20-49-11-7.
1549	1549	4 This subdivision includes the attainment of an advance to
1550	1550	5 repay existing leases or debt obtained by a charter school for
1551	1551	6 the purpose of making improvements to charter school
1552	1552	7 property.
1553	1553	8 (b) The term does not include facilities used or to be used primarily
1554	1554	9 for interscholastic or extracurricular activities. If a program involves a
1555	1555	10 school corporation career and technical education school described in
1556	1556	11 IC 20-37-1-1, the adjusted assessed valuation and current ADM of all
1557	1557	12 those school corporations that are members of the career and technical
1558	1558	13 education school are to be used for making determinations under this
1559	1559	14 section.
1560	1560	15 SECTION 28. IC 20-49-4-8, AS ADDED BY P.L.2-2006,
1561	1561	16 SECTION 172, IS AMENDED TO READ AS FOLLOWS
1562	1562	17 [EFFECTIVE JULY 1, 2023]: Sec. 8. (a) The state board may advance
1563	1563	18 money to school corporations to be used for:
1564	1564	19 (1) school building construction programs; and
1565	1565	20 (2) educational technology programs;
1566	1566	21 as provided in this chapter.
1567	1567	22 (b) The state board shall advance money to a charter school
1568	1568	23 approved to receive an advance under IC 20-49-11-7 in accordance
1569	1569	24 with IC 20-49-11-8 to be used for:
1570	1570	25 (1) school building construction programs; and
1571	1571	26 (2) educational technology programs;
1572	1572	27 as provided in this chapter.
1573	1573	28 SECTION 29. IC 20-49-4-9, AS AMENDED BY P.L.40-2014,
1574	1574	29 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1575	1575	30 JULY 1, 2023]: Sec. 9. (a) This section does not apply to a charter
1576	1576	31 school approved to receive an advance under IC 20-49-11-7.
1577	1577	32 (b) Priority of advances for school building construction programs
1578	1578	33 shall be made to school corporations that have the least amount of
1579	1579	34 adjusted assessed valuation (as determined under IC 6-1.1-34-8) per
1580	1580	35 student in current ADM. If a program involves a school corporation
1581	1581	36 career and technical education school described in IC 20-37-1-1, the
1582	1582	37 adjusted assessed valuation and current ADM of all those school
1583	1583	38 corporations that are members of the career and technical education
1584	1584	39 school are to be used for making determinations under this section.
1585	1585	40 SECTION 30. IC 20-49-4-10, AS ADDED BY P.L.2-2006,
1586	1586	41 SECTION 172, IS AMENDED TO READ AS FOLLOWS
1587	1587	42 [EFFECTIVE JULY 1, 2023]: Sec. 10. (a) This section does not apply
1588	1588	2023 IN 1607—LS 7216/DI 116 37
1589	1589	1 to a charter school approved to receive an advance under
1590	1590	2 IC 20-49-11-7.
1591	1591	3 (b) Priority of advances for educational technology programs shall
1592	1592	4 be on whatever basis the state board, after consulting with the
1593	1593	5 department and the budget agency, periodically determines.
1594	1594	6 SECTION 31. IC 20-49-4-11, AS ADDED BY P.L.2-2006,
1595	1595	7 SECTION 172, IS AMENDED TO READ AS FOLLOWS
1596	1596	8 [EFFECTIVE JULY 1, 2023]: Sec. 11. (a) A school corporation
1597	1597	9 desiring to obtain an advance must submit an application to the state
1598	1598	10 board in the form established by the state board, after consulting with
1599	1599	11 the department and the budget agency.
1600	1600	12 (b) A charter school organizer (as defined in IC 20-24-1-7) shall
1601	1601	13 submit an application for an advance in the manner prescribed in
1602	1602	14 IC 20-49-11-6.
1603	1603	15 SECTION 32. IC 20-49-4-12, AS AMENDED BY P.L.244-2017,
1604	1604	16 SECTION 120, IS AMENDED TO READ AS FOLLOWS
1605	1605	17 [EFFECTIVE JULY 1, 2023]: Sec. 12. (a) For a school corporation
1606	1606	18 or charter school to qualify for an advance under this chapter, a:
1607	1607	19 (1) school corporation must establish an operations fund under
1608	1608	20 IC 20-40-18; and
1609	1609	21 (2) charter school must establish an operations fund.
1610	1610	22 (b) The state board, after consulting with the department and the
1611	1611	23 budget agency, may waive or modify this the requirement under this
1612	1612	24 section upon a showing of good cause by the school corporation or
1613	1613	25 charter school.
1614	1614	26 SECTION 33. IC 20-49-4-13, AS ADDED BY P.L.2-2006,
1615	1615	27 SECTION 172, IS AMENDED TO READ AS FOLLOWS
1616	1616	28 [EFFECTIVE JULY 1, 2023]: Sec. 13. An advance to a school
1617	1617	29 corporation or charter school for any school building construction
1618	1618	30 program may not exceed the greater of the following:
1619	1619	31 (1) Fifteen million dollars ($15,000,000).
1620	1620	32 (2) The product of fifteen thousand dollars ($15,000) multiplied
1621	1621	33 by the number of students accommodated as a result of the school
1622	1622	34 building construction program.
1623	1623	35 However, if a school corporation or charter school has sustained loss
1624	1624	36 by disaster, this limitation may be waived by the state board after
1625	1625	37 consulting with the department and the budget agency.
1626	1626	38 SECTION 34. IC 20-49-4-14, AS ADDED BY P.L.2-2006,
1627	1627	39 SECTION 172, IS AMENDED TO READ AS FOLLOWS
1628	1628	40 [EFFECTIVE JULY 1, 2023]: Sec. 14. An advance for an educational
1629	1629	41 technology program is without limitation in amount other than the
1630	1630	42 availability of funds in the fund for this purpose and the ability of the
1631	1631	2023 IN 1607—LS 7216/DI 116 38
1632	1632	1 school corporation or charter school desiring an advance to pay the
1633	1633	2 advance according to the terms of the advance.
1634	1634	3 SECTION 35. IC 20-49-4-15, AS ADDED BY P.L.2-2006,
1635	1635	4 SECTION 172, IS AMENDED TO READ AS FOLLOWS
1636	1636	5 [EFFECTIVE JULY 1, 2023]: Sec. 15. (a) Money advanced to a school
1637	1637	6 corporation or charter school for a school building construction
1638	1638	7 program may be advanced for a period not exceeding twenty-five (25)
1639	1639	8 years. The school corporation or charter school to which money is
1640	1640	9 advanced must pay interest on the advance. For advances made before
1641	1641	10 July 1, 1993, the state board may provide, either before an advance is
1642	1642	11 made or before an advance is fully paid, that the payment of the
1643	1643	12 advance may not be prepaid by more than six (6) months. For advances
1644	1644	13 made after June 30, 1993, for school building construction programs,
1645	1645	14 the state board may provide that the advances are prepayable at any
1646	1646	15 time.
1647	1647	16 (b) The state board of finance shall periodically establish the rate or
1648	1648	17 rates of interest payable on advances for school building construction
1649	1649	18 programs as long as:
1650	1650	19 (1) the established interest rate or rates do not exceed seven and
1651	1651	20 one-half percent (7.5%); and
1652	1652	21 (2) the interest rate or rates on advances made to school
1653	1653	22 corporations with advances outstanding on July 1, 1993, bearing
1654	1654	23 interest at seven and one-half percent (7.5%) or more shall not
1655	1655	24 exceed four percent (4%).
1656	1656	25 SECTION 36. IC 20-49-4-16, AS ADDED BY P.L.2-2006,
1657	1657	26 SECTION 172, IS AMENDED TO READ AS FOLLOWS
1658	1658	27 [EFFECTIVE JULY 1, 2023]: Sec. 16. (a) Money advanced to a school
1659	1659	28 corporation or charter school for an educational technology program
1660	1660	29 may be for a period not exceeding five (5) years. The school
1661	1661	30 corporation or charter school to which an advance is made shall pay
1662	1662	31 interest on the advance. Advances for educational technology programs
1663	1663	32 may be prepaid at any time.
1664	1664	33 (b) The state board of finance shall periodically establish the rate or
1665	1665	34 rates of interest payable on advances for educational technology
1666	1666	35 programs as long as the established interest rate or rates:
1667	1667	36 (1) are not less than one percent (1%); and
1668	1668	37 (2) do not exceed four percent (4%).
1669	1669	38 SECTION 37. IC 20-49-4-17, AS ADDED BY P.L.2-2006,
1670	1670	39 SECTION 172, IS AMENDED TO READ AS FOLLOWS
1671	1671	40 [EFFECTIVE JULY 1, 2023]: Sec. 17. An advance is not an obligation
1672	1672	41 of the school corporation within the meaning of the limitation on or
1673	1673	42 prohibition against indebtedness under the Constitution of the State of
1674	1674	2023 IN 1607—LS 7216/DI 116 39
1675	1675	1 Indiana. Nothing in this chapter relieves the governing body of a school
1676	1676	2 corporation or charter school receiving an advance of any obligation
1677	1677	3 under Indiana law to qualify the school corporation or charter school
1678	1678	4 for state tuition support. The school corporation or charter school
1679	1679	5 shall continue to perform all acts necessary to obtain these funds.
1680	1680	6 SECTION 38. IC 20-49-4-18, AS AMENDED BY P.L.40-2014,
1681	1681	7 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1682	1682	8 JULY 1, 2023]: Sec. 18. (a) This section does not apply to a charter
1683	1683	9 school unless the state board suspends repayment of an advance
1684	1684	10 and interest on the advance from the public school options fund
1685	1685	11 established in IC 20-49-11-5 in accordance with IC 20-49-11-9(b).
1686	1686	12 (b) To ensure timely payment of advances according to the terms,
1687	1687	13 the state may in its sole discretion withhold from funds due to school
1688	1688	14 corporations or a charter school subject to IC 20-49-11-9(b) to which
1689	1689	15 advances are made amounts necessary to pay the advances and the
1690	1690	16 interest on the advances in accordance with their respective terms. The
1691	1691	17 terms of the advances shall be established by the state board after
1692	1692	18 consulting with the department and upon the approval of the budget
1693	1693	19 agency in advance of the time the respective advances are made.
1694	1694	20 However, in the case of school corporations with advances outstanding
1695	1695	21 on July 1, 1993, the withholding may be adjusted to conform with this
1696	1696	22 chapter.
1697	1697	23 (c) To the extent available, funds shall first be withheld from the
1698	1698	24 distribution of state tuition support. However, if this distribution is not
1699	1699	25 available or is inadequate, funds may be withheld from the distribution
1700	1700	26 of other state funds to the school corporation or a charter school
1701	1701	27 subject to IC 20-49-11-9(b) to which the advance is made.
1702	1702	28 (d) If an advance is made to a school corporation career and
1703	1703	29 technical education school described in IC 20-37-1-1, a part of the
1704	1704	30 advance and the payment obligation for that part of the advance shall
1705	1705	31 be determined by allocating the advance and payment amounts among
1706	1706	32 the members of the career and technical education school using the
1707	1707	33 number of students from each member school corporation that are
1708	1708	34 enrolled in the career and technical education school in the school year
1709	1709	35 the advance is made.
1710	1710	36 SECTION 39. IC 20-49-4-19, AS AMENDED BY P.L.40-2014,
1711	1711	37 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1712	1712	38 JULY 1, 2023]: Sec. 19. (a) This section does not apply to a charter
1713	1713	39 school unless the state board suspends repayment of an advance
1714	1714	40 and interest on the advance from the public school options fund
1715	1715	41 established in IC 20-49-11-5 in accordance with IC 20-49-11-9(b).
1716	1716	42 (b) A Each school corporation or charter school subject to
1717	1717	2023 IN 1607—LS 7216/DI 116 40
1718	1718	1 IC 20-49-11-9(b) receiving an advance shall agree to have the money
1719	1719	2 advanced, together with the interest on the advance, deducted from the
1720	1720	3 distribution of state tuition support until all the money advanced,
1721	1721	4 together with the interest on the advance, has been paid. The state
1722	1722	5 board and the state board of finance shall reduce each distribution of
1723	1723	6 state tuition support to each school corporation or charter school
1724	1724	7 subject to IC 20-49-11-9(b) to which an advance is made in an amount
1725	1725	8 to be agreed upon by the state and the school corporation or charter
1726	1726	9 school subject to IC 20-49-11-9(b). If an advance is made to a school
1727	1727	10 corporation career and technical education school described in
1728	1728	11 IC 20-37-1-1, the reduction for a payment obligation for the advance
1729	1729	12 shall be allocated as provided in section 18 of this chapter.
1730	1730	13 SECTION 40. IC 20-49-4-23, AS AMENDED BY P.L.217-2017,
1731	1731	14 SECTION 139, IS AMENDED TO READ AS FOLLOWS
1732	1732	15 [EFFECTIVE JULY 1, 2023]: Sec. 23. (a) This section does not apply
1733	1733	16 to a charter school unless the state board suspends repayment of
1734	1734	17 an advance and interest on the advance from the public school
1735	1735	18 options fund established in IC 20-49-11-5 in accordance with
1736	1736	19 IC 20-49-11-9(b).
1737	1737	20 (b) Upon request of the treasurer of state, the state board of finance
1738	1738	21 may periodically sell, transfer, or liquidate agreements, in whole or in
1739	1739	22 part, including without limitation the sale, transfer, or liquidation of all
1740	1740	23 or any part of the principal or interest to be received at any time under
1741	1741	24 one (1) or more agreements that evidence the right of the state to make
1742	1742	25 deductions from state tuition support to pay advances under this
1743	1743	26 chapter under the terms and conditions that the state board of finance
1744	1744	27 considers necessary and appropriate.
1745	1745	28 (b) (c) Each sale, transfer, or liquidation under this section is subject
1746	1746	29 to the following conditions:
1747	1747	30 (1) Each sale, transfer, or liquidation may be made only to a
1748	1748	31 department, an agency, a commission, an instrumentality, or a
1749	1749	32 public body of the state, including the Indiana bond bank.
1750	1750	33 (2) Each sale, transfer, or liquidation of agreements may be made
1751	1751	34 only for cash.
1752	1752	35 (3) Payments under the sale, transfer, or liquidation must be made
1753	1753	36 to the treasurer of state for the fund and reported to the state board
1754	1754	37 of finance.
1755	1755	38 (4) The total amount of cash received by the fund from the sale
1756	1756	39 may not be less than the outstanding principal amount of all or a
1757	1757	40 part of the agreements sold plus accrued interest owed.
1758	1758	41 (5) If necessary to facilitate a sale, transfer, or liquidation, the
1759	1759	42 state board or the state board of finance may agree to act on
1760	1760	2023 IN 1607—LS 7216/DI 116 41
1761	1761	1 behalf of an entity described in subdivision (1) by collecting
1762	1762	2 payment on advances that are:
1763	1763	3 (A) received directly from a school corporation or charter
1764	1764	4 school subject to IC 20-49-11-9(b), if any direct payments are
1765	1765	5 received; or
1766	1766	6 (B) deducted from amounts appropriated and made available
1767	1767	7 for state tuition support.
1768	1768	8 An agreement by the state board or the state board of finance
1769	1769	9 under this subdivision is a valid and enforceable contractual
1770	1770	10 obligation but is not a debt of the state within the meaning of the
1771	1771	11 limitation against indebtedness under the Constitution of the State
1772	1772	12 of Indiana.
1773	1773	13 (6) Each proposed sale, transfer, or liquidation must be reviewed
1774	1774	14 by the budget committee and approved by the budget agency.
1775	1775	15 (c) (d) The state board of finance shall notify the state board and the
1776	1776	16 department of any action that the state board of finance takes under this
1777	1777	17 section.
1778	1778	18 SECTION 41. IC 20-49-11 IS ADDED TO THE INDIANA CODE
1779	1779	19 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
1780	1780	20 JULY 1, 2023]:
1781	1781	21 Chapter 11. Public School Options Program and Fund
1782	1782	22 Sec. 1. As used in the chapter, "authorizer" has the meaning set
1783	1783	23 forth in IC 20-24-1-2.5.
1784	1784	24 Sec. 2. (a) As used in this chapter, "charter school" refers to a
1785	1785	25 school established under IC 20-24.
1786	1786	26 (b) The term does not include the following:
1787	1787	27 (1) A virtual charter school (as defined in IC 20-24-1-10).
1788	1788	28 (2) An adult high school (as defined in IC 20-24-1-2.3).
1789	1789	29 Sec. 3. As used in this chapter, "fund" refers to the public school
1790	1790	30 options fund established by section 5 of this chapter.
1791	1791	31 Sec. 4. As used in this chapter, "organizer" has the meaning set
1792	1792	32 forth in IC 20-24-1-7.
1793	1793	33 Sec. 5. (a) The public school options fund is established for the
1794	1794	34 purposes of this chapter. Administrative expenses necessary to
1795	1795	35 carry out this chapter are also payable from the fund.
1796	1796	36 (b) The fund consists of:
1797	1797	37 (1) amounts distributed to the fund by the department of
1798	1798	38 revenue under IC 6-2.5-10-1(d)(4);
1799	1799	39 (2) appropriations to the fund from other sources;
1800	1800	40 (3) grants, gifts, and donations intended for deposit in the
1801	1801	41 fund; and
1802	1802	42 (4) interest that accrues from money in the fund.
1803	1803	2023 IN 1607—LS 7216/DI 116 42
1804	1804	1 (c) The fund shall be administered by the state board. The
1805	1805	2 treasurer of state shall invest the money in the fund not currently
1806	1806	3 needed to meet the obligations of the fund in the same manner as
1807	1807	4 public money is invested.
1808	1808	5 Sec. 6. (a) In order for a charter school to obtain an advance
1809	1809	6 from the common school fund under IC 20-49-4, a charter school's
1810	1810	7 organizer must submit an application to the charter school's
1811	1811	8 authorizer. The state board shall prescribe a standard application
1812	1812	9 and the authorizer may prescribe a supplemental application
1813	1813	10 requiring the organizer to include additional information not
1814	1814	11 included on the state board's standard application.
1815	1815	12 (b) The standard application described in subsection (a) must
1816	1816	13 require the organizer to:
1817	1817	14 (1) describe how the advance will be used in accordance to
1818	1818	15 IC 20-49-4-7; and
1819	1819	16 (2) provide information to demonstrate a need for the
1820	1820	17 advance.
1821	1821	18 (c) In addition to the requirements described in subsection (b),
1822	1822	19 the authorizer must require the organizer to develop and present
1823	1823	20 a plan for providing security for any outstanding balance of the
1824	1824	21 advance in the event that the charter school closes or to recoup any
1825	1825	22 gain from the sale of the applicable charter school property
1826	1826	23 resulting from the advance made under IC 20-49-4 if the applicable
1827	1827	24 property is sold:
1828	1828	25 (1) while the advance is being repaid; or
1829	1829	26 (2) within five (5) years after the advance is repaid;
1830	1830	27 in accordance with section 9 of this chapter.
1831	1831	28 Sec. 7. (a) Upon receipt of the application described in section
1832	1832	29 6 of this chapter, the authorizer shall review the application and
1833	1833	30 may require the organizer to provide supporting documentation
1834	1834	31 relating to the organizer's application. The authorizer shall
1835	1835	32 consider:
1836	1836	33 (1) the charter school's current and projected student
1837	1837	34 enrollment;
1838	1838	35 (2) the academic needs of students attending the charter
1839	1839	36 school;
1840	1840	37 (3) the facility needs of the charter school;
1841	1841	38 (4) the financial health of the charter school; and
1842	1842	39 (5) the organizer's ability to secure the loan in accordance
1843	1843	40 with section 6 of this chapter;
1844	1844	41 when reviewing the organizer's application.
1845	1845	42 (b) The authorizer may approve, deny, or require the organizer
1846	1846	2023 IN 1607—LS 7216/DI 116 43
1847	1847	1 to modify the organizer's application.
1848	1848	2 (c) The authorizer may require the organizer to provide security
1849	1849	3 for the advance made under IC 20-49-4.
1850	1850	4 (d) The authorizer may only approve an advance for terms of
1851	1851	5 the advance prescribed in:
1852	1852	6 (1) IC 20-49-4-12;
1853	1853	7 (2) IC 20-49-4-13;
1854	1854	8 (3) IC 20-49-4-14; and
1855	1855	9 (4) IC 20-49-4-15.
1856	1856	10 Sec. 8. (a) If the authorizer approves an organizer's application
1857	1857	11 under section 7 of this chapter, the authorizer shall send a copy of
1858	1858	12 the approved application to the state board within ten (10) business
1859	1859	13 days of the date the application is approved.
1860	1860	14 (b) Upon receipt of the copy of the approved application by the
1861	1861	15 state board, the state board shall approve the application and
1862	1862	16 provide the advance under IC 20-49-4 to the applicable charter
1863	1863	17 school.
1864	1864	18 Sec. 9. (a) The state board shall repay the money advanced by
1865	1865	19 the applicable charter school together with the interest on the
1866	1866	20 advance in accordance with IC 20-49-4 from the fund.
1867	1867	21 (b) The state board may suspend the repayment of an advance
1868	1868	22 or interest from the fund at the written request of the charter
1869	1869	23 school's authorizer. The authorizer may only request that an
1870	1870	24 advance be suspended under this subsection in instances where an
1871	1871	25 applicable charter school building is sold by the organizer. In the
1872	1872	26 event that the state board suspends repayment of an advance or
1873	1873	27 interest under this subsection, the charter school organizer is
1874	1874	28 responsible for completing the terms of repayment of the advance
1875	1875	29 in accordance with the terms approved by the state board in
1876	1876	30 consultation with the charter school's authorizer.
1877	1877	31 (c) When an advance together with interest on the advance has
1878	1878	32 been paid in full under this section, the state board shall send
1879	1879	33 notice to the charter school's authorizer and organizer indicating
1880	1880	34 the date that the advance together with interest on the advance has
1881	1881	35 been satisfied.
1882	1882	2023 IN 1607—LS 7216/DI 116