Introduced Version
HOUSE BILL No. 1607
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-1.5-1-8; IC 6-2.5-10-1; IC 20-24; IC 20-29;
IC 20-40; IC 20-46; IC 20-49.
Synopsis: Charter school matters. Provides all charter schools access
to loans through the Indiana bond bank. Requires a county auditor to
distribute a portion of revenue received from a school corporation's
operations fund property tax levy to each: (1) charter school in which
students who receive not more than 50% virtual instruction and who
have legal settlement in the school corporation attend; and (2)
transferee school corporation that a transferred student who has legal
settlement in the school corporation attends. Phases in the distributions
over three years. Provides that, for a resolution to adopt a school
operating referendum tax levy adopted after June 30, 2023, a county
auditor must distribute a portion of revenue received from the levy or
school safety referendum tax levy to each transferee school corporation
and charter school in which students who receive not more than 50%
virtual instruction and who have legal settlement in the school
corporation attend. Provides that if a charter school receives a
distribution from a school corporation from a school operating
referendum tax levy or a school safety referendum tax levy, the charter
school must post certain information on the charter school's website.
Provides that a charter school or transferee school corporation that may
receive money from a school operating referendum tax levy or a school
safety referendum tax levy may not promote a position on a
referendum, in the same manner as a school corporation is prohibited
from promoting a position on a referendum. Provides that the
maximum length of a charter is 15 years. (Current law provides that the
maximum length of a charter is seven years.) Amends the definition of
"school building construction program" to: (1) include the purchase,
(Continued next page)
Effective: July 1, 2023; January 1, 2024.
Behning, Teshka
January 19, 2023, read first time and referred to Committee on Education.
2023 IN 1607—LS 7216/DI 116 Digest Continued
lease, or financing of land, the construction and equipping of school
buildings, and the remodeling, repairing, or improving of school
buildings by a charter school; and (2) replace "adjusted assessed
valuation" with "assessed valuation" with regard to school corporation
eligibility for an advance from the common school fund. Establishes
the public school options program and fund. Provides that a charter
school (excluding a virtual charter school or adult high school) may
receive an advance from the common school fund if the charter school's
authorizer approves the application. Provides that the state board of
education shall repay a charter school's advance from proceeds in the
public school options fund. Provides that the department of state
revenue shall make a distribution from the state retail and use tax that
it collects to the public school options fund. Makes conforming
amendments. Makes a technical correction.
2023 IN 1607—LS 7216/DI 1162023 IN 1607—LS 7216/DI 116 Introduced
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2022 Regular Session of the General Assembly.
HOUSE BILL No. 1607
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 5-1.5-1-8, AS AMENDED BY P.L.81-2020,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 8. "Qualified entity" means:
4 (1) a political subdivision (as defined in IC 36-1-2-13);
5 (2) a state educational institution;
6 (3) a leasing body (as defined in IC 5-1-1-1(a));
7 (4) a not-for-profit utility (as defined in IC 8-1-2-125);
8 (5) any rural electric membership corporation organized under
9 IC 8-1-13;
10 (6) any corporation that was organized in 1963 under Acts 1935,
11 c. 157 and that engages in the generation and transmission of
12 electric energy;
13 (7) any communications cooperative corporation formed under
14 IC 8-1-17;
15 (8) any commission, authority, or authorized body of any qualified
2023 IN 1607—LS 7216/DI 116 2
1 entity;
2 (9) any organization, association, or trust with members,
3 participants, or beneficiaries that are all individually qualified
4 entities;
5 (10) any commission, authority, or instrumentality of the state;
6 (11) any other participant (as defined in IC 5-1.2-2-54);
7 (12) a charter school established under IC 20-5.5 (before its
8 repeal) or IC 20-24; that is not a qualified entity under
9 IC 5-1.4-1-10;
10 (13) a volunteer fire department (as defined in IC 36-8-12-2); or
11 (14) a development authority (as defined in IC 36-7.6-1-8).
12 SECTION 2. IC 6-2.5-10-1, AS AMENDED BY P.L.218-2017,
13 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2023]: Sec. 1. (a) The department shall account for all state
15 gross retail and use taxes that it collects.
16 (b) Of all the state gross retail and use taxes that the department
17 collects, the department shall determine separately the parts that:
18 (1) the department collects under IC 6-2.5-3.5 (gasoline use tax);
19 and
20 (2) the department collects under this article, less the amount
21 described in subdivision (1).
22 (c) The department shall deposit the collections described in
23 subsection (b)(1) in the following manner:
24 (1) For state fiscal year 2017, the following:
25 (A) Fourteen and two hundred eighty-six thousandths percent
26 (14.286%) of the collections shall be deposited in the motor
27 vehicle highway account established under IC 8-14-1.
28 (B) Eighty-five and seven hundred fourteen thousandths
29 percent (85.714%) to the state general fund.
30 (2) For state fiscal year 2018, the following:
31 (A) Fourteen and two hundred eighty-six thousandths percent
32 (14.286%) of the collections shall be deposited in the motor
33 vehicle highway account established under IC 8-14-1.
34 (B) Fourteen and two hundred eighty-six thousandths percent
35 (14.286%) of the collections shall be deposited in the local
36 road and bridge matching grant fund established under
37 IC 8-23-30.
38 (C) Seventy-one and four hundred twenty-eight thousandths
39 percent (71.428%) to the state general fund.
40 (3) For state fiscal year 2019, the following:
41 (A) Fourteen and two hundred eighty-six thousandths percent
42 (14.286%) of the collections shall be deposited in the motor
2023 IN 1607—LS 7216/DI 116 3
1 vehicle highway account established under IC 8-14-1.
2 (B) Twenty-one and four hundred twenty-nine thousandths
3 percent (21.429%) of the collections shall be deposited in the
4 local road and bridge matching grant fund established under
5 IC 8-23-30.
6 (C) Sixty-four and two hundred eighty-five thousandths
7 percent (64.285%) shall be deposited in the state general fund.
8 (4) For state fiscal year 2020 and for each state fiscal year
9 thereafter, the following:
10 (A) Fourteen and two hundred eighty-six thousandths percent
11 (14.286%) of the collections shall be deposited in the motor
12 vehicle highway account established under IC 8-14-1.
13 (B) Twenty-one and four hundred twenty-nine thousandths
14 percent (21.429%) of the collections shall be deposited in the
15 local road and bridge matching grant fund established under
16 IC 8-23-30.
17 (C) The following shall be deposited in the state general fund:
18 (i) For state fiscal year 2020, fifty-three and five hundred
19 seventy-five thousandths percent (53.575%) shall be
20 deposited in the state general fund.
21 (ii) For state fiscal year 2021, forty-two and eight hundred
22 sixty-five thousandths percent (42.865%) shall be deposited
23 in the state general fund.
24 (iii) For state fiscal year 2022, thirty-two and one hundred
25 fifty-five thousandths percent (32.155%) shall be deposited
26 in the state general fund.
27 (iv) For state fiscal year 2023, twenty-one and four hundred
28 forty-five thousandths percent (21.445%) shall be deposited
29 in the state general fund.
30 (v) For state fiscal year 2024, ten and seven hundred
thirty-five thousandths 31 percent (10.735%) shall be deposited
32 in the state general fund.
33 (D) The following shall be deposited in the special
34 transportation flexibility fund established by IC 4-12-16.5-2:
35 (i) For state fiscal year 2020, eight and five hundred
36 sixty-eight thousands percent (8.568%) of the collections
37 shall be deposited in the special transportation flexibility
38 fund established by IC 4-12-16.5-2.
39 (ii) For state fiscal year 2021, twelve and eight hundred
40 fifty-two thousandths percent (12.852%) of the collections
41 shall be deposited in the special transportation flexibility
42 fund established by IC 4-12-16.5-2.
2023 IN 1607—LS 7216/DI 116 4
1 (iii) For state fiscal year 2022, twelve and eight hundred
2 fifty-two thousandths percent (12.852%) of the collections
3 shall be deposited in the special transportation flexibility
4 fund established by IC 4-12-16.5-2.
5 (iv) For state fiscal year 2023, eight and five hundred
6 sixty-eight thousands percent (8.568%) of the collections
7 shall be deposited in the special transportation flexibility
8 fund established by IC 4-12-16.5-2.
9 (E) The following shall be deposited in the state highway fund:
10 (i) For state fiscal year 2020, two and one hundred forty-two
11 thousandths percent (2.142%) of the collections shall be
12 deposited in the state highway fund.
13 (ii) For state fiscal year 2021, eight and five hundred
14 sixty-eight thousandths percent (8.568%) of the collections
15 shall be deposited in the state highway fund.
16 (iii) For state fiscal year 2022, nineteen and two hundred
17 seventy-eight thousandths percent (19.278%) of the
18 collections shall be deposited in the state highway fund.
19 (iv) For state fiscal year 2023, thirty-four and two hundred
20 seventy-two thousandths percent (34.272%) of the
21 collections shall be deposited in the state highway fund.
22 (v) For state fiscal year 2024, fifty-three and fifty-five
23 hundredths percent (53.55%) of the collections shall be
24 deposited in the state highway fund.
25 (vi) For state fiscal year 2025, and for each state fiscal year
26 thereafter, sixty-four and two hundred eighty-five
27 thousandths percent (64.285%) of the collections shall be
28 deposited in the state highway fund.
29 (d) The department shall deposit those collections described in
30 subsection (b)(2) in the following manner:
31 (1) Ninety-nine and eight two hundred thirty-eight thousandths
32 percent (99.838%) (99.238%) of the collections shall be paid into
33 the state general fund.
34 (2) Thirty-one thousandths of one percent (0.031%) of the
35 collections shall be deposited into the industrial rail service fund
36 established under IC 8-3-1.7-2.
37 (3) One hundred thirty-one thousandths of one percent (0.131%)
38 of the collections shall be deposited into the commuter rail service
39 fund established under IC 8-3-1.5-20.5.
40 (4) Six-tenths of one percent (0.6%) of the collections shall be
41 deposited into the public school options fund established by
42 IC 20-49-11-5.
2023 IN 1607—LS 7216/DI 116 5
1 SECTION 3. IC 20-24-4-1, AS AMENDED BY P.L.211-2021,
2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 1. (a) A charter must meet the following
4 requirements:
5 (1) Be a written instrument.
6 (2) Be executed by an authorizer and an organizer.
7 (3) Confer certain rights, franchises, privileges, and obligations
8 on a charter school.
9 (4) Confirm the status of a charter school as a public school.
10 (5) Subject to subdivision (6)(E), be granted for:
11 (A) not less than three (3) years or more than seven (7) fifteen
12 (15) years; and
13 (B) a fixed number of years agreed to by the authorizer and the
14 organizer.
15 (6) Provide for the following:
16 (A) A review by the authorizer of the charter school's
17 performance, including the progress of the charter school in
18 achieving the academic goals set forth in the charter, at least
19 one (1) time in each five (5) year period while the charter is in
20 effect.
21 (B) Renewal, if the authorizer and the organizer agree to renew
22 the charter.
23 (C) The renewal application must include guidance from the
24 authorizer, and the guidance must include the performance
25 criteria that will guide the authorizer's renewal decisions.
26 (D) The renewal application process must, at a minimum,
27 provide an opportunity for the charter school to:
28 (i) present additional evidence, beyond the data contained in
29 the performance report, supporting its case for charter
30 renewal;
31 (ii) describe improvements undertaken or planned for the
32 charter school; and
33 (iii) detail the charter school's plans for the next charter
34 term.
35 (E) Not later than the end of the calendar year in which the
36 charter school seeks renewal of a charter, the governing board
37 of a charter school seeking renewal shall submit a renewal
38 application to the charter authorizer under the renewal
39 application guidance issued by the authorizer. The authorizer
40 shall make a final ruling on the renewal application not later
41 than April 1 after the filing of the renewal application. A
42 renewal granted under this clause is not subject to the three (3)
2023 IN 1607—LS 7216/DI 116 6
1 year minimum described in subdivision (5). The April 1
2 deadline does not apply to any review or appeal of a final
3 ruling. After the final ruling is issued, the charter school may
4 obtain further review by the authorizer of the authorizer's final
5 ruling in accordance with the terms of the charter school's
6 charter and the protocols of the authorizer.
7 (7) Specify the grounds for the authorizer to:
8 (A) revoke the charter before the end of the term for which the
9 charter is granted; or
10 (B) not renew a charter.
11 (8) Set forth the methods by which the charter school will be held
12 accountable for achieving the educational mission and goals of
13 the charter school, including the following:
14 (A) Evidence of improvement in:
15 (i) assessment measures, including the statewide assessment
16 program measures;
17 (ii) attendance rates;
18 (iii) graduation rates (if appropriate);
19 (iv) increased numbers of Indiana diplomas with a Core 40
20 designation and other college and career ready indicators
21 including advanced placement participation and passage,
22 dual credit participation and passage, and International
23 Baccalaureate participation and passage (if appropriate);
24 (v) increased numbers of Indiana diplomas with Core 40
25 with academic honors and technical honors designations (if
26 appropriate);
27 (vi) student academic growth;
28 (vii) financial performance and stability; and
29 (viii) governing board performance and stewardship,
30 including compliance with applicable laws, rules and
31 regulations, and charter terms.
32 (B) Evidence of progress toward reaching the educational
33 goals set by the organizer.
34 (9) Describe the method to be used to monitor the charter
35 school's:
36 (A) compliance with applicable law; and
37 (B) performance in meeting targeted educational performance.
38 (10) Specify that the authorizer and the organizer may amend the
39 charter during the term of the charter by mutual consent and
40 describe the process for amending the charter.
41 (11) Describe specific operating requirements, including all the
42 matters set forth in the application for the charter.
2023 IN 1607—LS 7216/DI 116 7
1 (12) Specify a date when the charter school will:
2 (A) begin school operations; and
3 (B) have students attending the charter school.
4 (13) Specify that records of a charter school relating to the
5 school's operation and charter are subject to inspection and
6 copying to the same extent that records of a public school are
7 subject to inspection and copying under IC 5-14-3.
8 (14) Specify that records provided by the charter school to the
9 department or authorizer that relate to compliance by the
10 organizer with the terms of the charter or applicable state or
11 federal laws are subject to inspection and copying in accordance
12 with IC 5-14-3.
13 (15) Specify that the charter school is subject to the requirements
14 of IC 5-14-1.5.
15 (16) This subdivision applies to a charter established or renewed
16 for an adult high school after June 30, 2014. The charter must
17 require:
18 (A) that the school will offer flexible scheduling;
19 (B) that students will not complete the majority of instruction
20 of the school's curriculum online or through remote
21 instruction;
22 (C) that the school will offer dual credit or industry
23 certification course work that aligns with career pathways as
24 recommended by the Indiana career council established by
25 IC 22-4.5-9-3 (expired); and
26 (D) a plan:
27 (i) to support successful program completion and to assist
28 transition of graduates to the workforce or to a
29 postsecondary education upon receiving a diploma from the
30 adult high school; and
31 (ii) to review individual student accomplishments and
32 success after a student receives a diploma from the adult
33 high school.
34 (b) A charter school shall set annual performance targets in
35 conjunction with the charter school's authorizer. The annual
36 performance targets shall be designed to help each school meet
37 applicable federal, state, and authorizer expectations.
38 SECTION 4. IC 20-24-7-6, AS AMENDED BY P.L.154-2020,
39 SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2023]: Sec. 6. (a) With the approval of a majority of the
41 members of the governing body, a school corporation may distribute a
42 proportionate share of the school corporation's operations fund to a
2023 IN 1607—LS 7216/DI 116 8
1 charter school. A charter school may elect to distribute a proportionate
2 share of the charter school's operations fund to the school corporation
3 in whose district the charter school is located.
4 (b) This subsection applies to a levy resulting from a resolution
5 to place a referendum on the ballot adopted by the governing body
6 under IC 20-46-1-8 or IC 20-46-1-8.5 before July 1, 2023. A
7 governing body may distribute money that is received as part of a tax
8 levy collected under IC 20-46-1 from the school corporation's
9 education fund to a charter school, excluding a virtual charter school,
10 in the manner provided by IC 20-46-1-8(d). IC 20-46-1-8(e).
11 (c) This subsection applies to a levy resulting from a resolution
12 to place a referendum on the ballot adopted by the governing body
13 under IC 20-46-9-6 or IC 20-46-9-7 before July 1, 2023. A
14 governing body may distribute money from the school safety
15 referendum tax levy fund to a charter school, excluding a virtual
16 charter school, in the manner prescribed by IC 20-46-9-6(b).
17 SECTION 5. IC 20-24-7-6.1 IS ADDED TO THE INDIANA CODE
18 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
19 JANUARY 1, 2024]: Sec. 6.1. (a) This section applies to revenue
20 collected after December 31, 2023, from a tax levy imposed by a
21 governing body under IC 20-46-8.
22 (b) The county auditor shall distribute money that is received as
23 part of a tax levy collected under IC 20-46-8 to an eligible charter
24 school, excluding a virtual charter school, in the manner provided
25 by IC 20-46-8-11.
26 SECTION 6. IC 20-24-7-6.2 IS ADDED TO THE INDIANA CODE
27 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
28 1, 2023]: Sec. 6.2. (a) This section applies to a levy resulting from
29 a resolution to place a referendum on the ballot adopted by the
30 governing body under IC 20-46-1-8, IC 20-46-1-8.5, IC 20-46-9-6,
31 or IC 20-46-9-7 after June 30, 2023.
32 (b) The county auditor in the county in which the applicable
33 school corporation is located shall distribute money that is received
34 as part of a tax levy collected under IC 20-46-1 to an applicable
35 charter school, excluding a virtual charter school, in the manner
36 provided by IC 20-46-1-21.
37 (c) The county auditor in the county in which the applicable
38 school corporation is located shall distribute money that is received
39 as part of a tax levy collected under IC 20-46-9 to an applicable
40 charter school, excluding a virtual charter school, in the manner
41 prescribed by IC 20-46-9-22.
42 (d) A charter school that may receive money from a school
2023 IN 1607—LS 7216/DI 116 9
1 corporation's tax levy collected under IC 20-46-1 or a school safety
2 referendum tax levy under IC 20-46-9 may not promote a position
3 on a referendum in the same manner as a school corporation is
4 prohibited from promoting a position on a referendum under
5 IC 20-46-1-20.
6 (e) If a charter school receives a distribution from a school
7 corporation from the school corporation's tax levy collected under
8 IC 20-46-1 or a school safety referendum tax levy under
9 IC 20-46-9, the charter school must post the following on the
10 charter school's website:
11 (1) The specific purposes for which the revenue received from
12 the tax levy will be used.
13 (2) An estimate of the annual dollar amounts that will be
14 expended for each purpose described in subdivision (1).
15 SECTION 7. IC 20-29-2-6, AS AMENDED BY P.L.272-2019,
16 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2023]: Sec. 6. "Deficit financing" for a budget year:
18 (1) means, except as provided in subdivision (2), actual
19 expenditures exceeding the employer's current year actual
20 education fund revenue and, for a school employer for which the
21 voters have passed an operating referendum tax levy under
22 IC 20-46-1 or a school safety referendum tax levy under
23 IC 20-46-9, the amount of revenue certified by the department of
24 local government finance, excluding money distributed to a
25 charter school or transferee school corporation from a levy
26 resulting from a resolution to place a referendum on the
27 ballot that is adopted by the governing body under
28 IC 20-46-1-8, IC 20-46-1-8.5, IC 20-46-9-6, or IC 20-46-9-7
29 after June 30, 2023; or
30 (2) means, in the case of any distressed school corporation, the
31 Gary Community School Corporation, or the Muncie Community
32 school corporation, actual expenditures plus additional payments
33 against any outstanding debt obligations exceeding the employer's
34 current year actual education fund revenue, and, for a school
35 employer for which the voters have passed an operating
36 referendum tax levy under IC 20-46-1 or a school safety
37 referendum tax levy under IC 20-46-9, excluding money
38 distributed to a charter school or transferee school
39 corporation from a levy resulting from a resolution to place
40 a referendum on the ballot that is adopted by the governing
41 body under IC 20-46-1-8, IC 20-46-1-8.5, IC 20-46-9-6, or
42 IC 20-46-9-7 after June 30, 2023, the amount of revenue
2023 IN 1607—LS 7216/DI 116 10
1 certified by the department of local government finance.
2 Except as provided in IC 20-29-6-3(c), revenue does not include money
3 estimated to be or actually transferred from the school corporation's
4 operations fund to its education fund.
5 SECTION 8. IC 20-29-8-7, AS AMENDED BY P.L.272-2019,
6 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2023]: Sec. 7. (a) When a factfinder is requested or required
8 under IC 20-29-6, the board shall appoint a factfinder.
9 (b) The factfinder shall make an investigation and hold hearings as
10 the factfinder considers necessary in connection with a dispute.
11 (c) The factfinder:
12 (1) may restrict the factfinder's findings to those issues that the
13 factfinder determines significant;
14 (2) must restrict the findings to the items listed in IC 20-29-6-4;
15 and
16 (3) may not impose terms beyond those proposed by the parties in
17 their last, best offers.
18 (d) The factfinder may use evidence furnished to the factfinder by:
19 (1) the parties;
20 (2) the board;
21 (3) the board's staff; or
22 (4) any other state agency.
23 (e) The factfinder shall conduct the factfinding hearing in public in
24 a room or facility owned by the county or local unit of government
25 located in the county in which the school employer is located, or if the
26 school employer is located in more than one (1) county, in the county
27 in which the greatest number of students who attend the school
28 employer's schools reside. The public hearing may begin not earlier
29 than November 15 in the first year of the state budget biennium and
30 must be concluded by February 15 of the calendar year after the start
31 of formal collective bargaining.
32 (f) The factfinding process may not exceed thirty (30) days from
33 beginning to end, and not more than two (2) of those days may be used
34 for public testimony, which may be taken at the discretion of the
35 factfinder. During the public hearing, each party shall present fully its
36 last, best offer, including the fiscal rationale for the offer. Only
37 education fund revenue and, for a school employer for which the voters
38 have passed an operating referendum tax levy under IC 20-46-1 or a
39 school safety referendum tax levy under IC 20-46-9, the amount of
40 revenue certified by the department of local government finance,
41 excluding money distributed to a charter school or transferee
42 school corporation from a levy resulting from a resolution to place
2023 IN 1607—LS 7216/DI 116 11
1 a referendum on the ballot that is adopted by the governing body
2 under IC 20-46-1-8, IC 20-46-1-8.5, IC 20-46-9-6, or IC 20-46-9-7
3 after June 30, 2023, may be considered a source of the funding for
4 items. Money estimated to be or actually transferred from the school
5 corporation's operations fund to its education fund may not be
6 considered a source of funding for items.
7 (g) The factfinder shall make a recommendation as to the settlement
8 of the disputes over which the factfinder has jurisdiction.
9 (h) The factfinder shall:
10 (1) make the investigation, hearing, and findings as expeditiously
11 as the circumstances permit; and
12 (2) deliver the findings to the parties and to the board.
13 (i) The board, after receiving the findings and recommendations,
14 may make additional findings and recommendations to the parties
15 based on information in:
16 (1) the report; or
17 (2) the board's own possession.
18 The board may not make any recommendations to the parties related to
19 any items not specifically identified in IC 20-29-6-4.
20 (j) At any time within five (5) days after the findings and
21 recommendations are delivered to the board, the board may make the
22 findings and recommendations of the factfinder and the board's
23 additional findings and recommendations, if any, available to the
24 public through news media and other means the board considers
25 effective.
26 (k) The board shall make the findings and recommendations
27 described in subsection (j) available to the public not later than ten (10)
28 days after the findings and recommendations are delivered to the board.
29 SECTION 9. IC 20-40-3-5, AS AMENDED BY P.L.154-2020,
30 SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2023]: Sec. 5. (a) Money in the fund may be used for any
32 lawful school expenses, including making a transfer to the school
33 corporation's education fund (IC 20-40-2) or operations fund (IC
34 20-40-18).
35 (b) This subsection applies to a levy resulting from a resolution
36 to place a referendum on the ballot that is adopted by the
37 governing body under IC 20-46-1-8 or IC 20-46-1-8.5 before July
38 1, 2023. A school corporation may distribute proceeds of a tax levy
39 collected under IC 20-46-1 that is transferred to the school
40 corporation's education fund to a charter school, excluding a virtual
41 charter school, that is located within the attendance area of the school
42 corporation.
2023 IN 1607—LS 7216/DI 116 12
1 SECTION 10. IC 20-40-20-6, AS AMENDED BY P.L.154-2020,
2 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 6. (a) Subject to subsections (c) and (d), money in
4 the fund may be used only for the following purposes:
5 (1) To employ or compensate a school resource officer or school
6 resource officers.
7 (2) To establish or fund a school safety office.
8 (3) To conduct a threat assessment of a school building.
9 (4) To create or update a school safety plan.
10 (5) To develop or update school emergency response systems.
11 (6) To purchase equipment to improve the safety of a school
12 building, school grounds, or school buses.
13 (7) To pay capital expenses to improve the safety of a school
14 building.
15 (8) To establish and administer programs to address youth
16 specific mental illness, addiction, anger management, bullying,
17 and school violence.
18 (9) To develop and administer professional development
19 programs for teachers, administrators, and other school employees
20 designed to improve school safety and reduce violence.
21 (b) This subsection applies to a levy resulting from a resolution
22 to place a referendum on the ballot adopted by the governing body
23 under IC 20-46-9-6 or IC 20-46-9-7 before July 1, 2023. A school
24 corporation may distribute, with the approval of the majority of
25 members of the governing body, a portion of the proceeds of a tax levy
26 collected under IC 20-46-9 that is deposited in the fund to a charter
27 school, excluding a virtual charter school, that is located within the
28 attendance area of the school corporation, to be used by the charter
29 school for the purposes described in subsection (a).
30 (c) Expenditures paid using money collected from the levy shall be
31 included in a school's safety plan.
32 (d) Local law enforcement shall participate in:
33 (1) development of a school safety plan;
34 (2) development or updates to school emergency response
35 systems; and
36 (3) determination of capital expenses that would improve the
37 safety of a school building.
38 (e) Money in the fund may be transferred to the school corporation's
39 education fund (IC 20-40-2), operations fund (IC 20-40-18), or school
40 safety referendum debt service fund (IC 20-40-21), as applicable, to
41 pay for expenditures listed in subsection (a).
42 SECTION 11. IC 20-46-1-8, AS AMENDED BY P.L.174-2022,
2023 IN 1607—LS 7216/DI 116 13
1 SECTION 51, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2023]: Sec. 8. (a) Subject to subsections (c), (d), and (e), (f),
3 and (g) and this chapter, the governing body of a school corporation
4 may adopt a resolution to place a referendum under this chapter on the
5 ballot for any of the following purposes:
6 (1) The governing body of the school corporation determines that
7 it cannot, in a calendar year, carry out its public educational duty
8 unless it imposes a referendum tax levy under this chapter.
9 (2) The governing body of the school corporation determines that
10 a referendum tax levy under this chapter should be imposed to
11 replace property tax revenue that the school corporation will not
12 receive because of the application of the credit under
13 IC 6-1.1-20.6.
14 (3) For a resolution adopted before July 1, 2023, the governing
15 body makes the determination required under subdivision (1) or
16 (2) and determines to share a portion of the referendum proceeds
17 with a charter school, excluding a virtual charter school, in the
18 manner prescribed in subsection (d). (e).
19 (b) A resolution for a referendum that is adopted after June 30,
20 2023, shall specify that a portion of the proceeds collected from the
21 proposed levy will be distributed to applicable charter schools and
22 transferee school corporations in the manner described under
23 section 21 of this chapter.
24 (b) (c) The governing body of the school corporation shall certify a
25 copy of the resolution to place a referendum on the ballot to the
26 following:
27 (1) The department of local government finance, including:
28 (A) the language for the question required by section 10 of this
29 chapter, or in the case of a resolution to extend a referendum
30 levy certified to the department of local government finance
31 after March 15, 2016, section 10.1 of this chapter; and
32 (B) a copy of the revenue spending plan adopted under
33 subsection (e). (g).
34 The language of the public question must include the estimated
35 average percentage increases certified by the county auditor under
36 section 10(e) or 10.1(f) of this chapter, as applicable. The
37 governing body of the school corporation shall also provide the
38 county auditor's certification described in section 10(e) or 10.1(f)
39 of this chapter, as applicable. The department of local government
40 finance shall post the values certified by the county auditor to the
41 department's Internet web site. website. The department shall
42 review the language for compliance with section 10 or 10.1 of this
2023 IN 1607—LS 7216/DI 116 14
1 chapter, whichever is applicable, and either approve or reject the
2 language. The department shall send its decision to the governing
3 body of the school corporation not more than ten (10) days after
4 the resolution is submitted to the department. If the language is
5 approved, the governing body of the school corporation shall
6 certify a copy of the resolution, including the language for the
7 question and the department's approval.
8 (2) The county fiscal body of each county in which the school
9 corporation is located (for informational purposes only).
10 (3) The circuit court clerk of each county in which the school
11 corporation is located.
12 (c) (d) If a school safety referendum tax levy under IC 20-46-9 has
13 been approved by the voters in a school corporation at any time in the
14 previous three (3) years, the school corporation may not:
15 (1) adopt a resolution to place a referendum under this chapter on
16 the ballot; or
17 (2) otherwise place a referendum under this chapter on the ballot.
18 (d) (e) This subsection applies to a resolution described in
19 subsection (a) that is adopted before July 1, 2023. The resolution
20 described in subsection (a) must indicate whether proceeds in the
21 school corporation's education fund collected from a tax levy under this
22 chapter will be used to provide a distribution to a charter school or
23 charter schools, excluding a virtual charter school, under IC 20-40-3-5
24 as well as the amount that will be distributed to the particular charter
25 school or charter schools. A school corporation may request from the
26 designated charter school or charter schools any financial
27 documentation necessary to demonstrate the financial need of the
28 charter school or charter schools.
29 (f) This subsection applies to a resolution described in
30 subsection (a) that is adopted after June 30, 2023. The resolution
31 described in subsection (a) shall include a projection of the amount
32 that the school corporation expects to be distributed to a particular
33 transferee school corporation and charter school, excluding virtual
34 charter schools or adult high schools, under section 21 of this
35 chapter. At least sixty (60) days before the resolution described in
36 subsection (a) is voted on by the governing body, the school
37 corporation shall contact the department to determine the number
38 of students in kindergarten through grade 12 who have legal
39 settlement in the school corporation but attend a transferee school
40 corporation or charter school, excluding virtual charter schools or
41 adult high schools, and who receive not more than fifty percent
42 (50%) virtual instruction. The department shall provide the school
2023 IN 1607—LS 7216/DI 116 15
1 corporation with the number of students with legal settlement in
2 the school corporation who attend a transferee school corporation
3 or charter school and who receive not more than fifty percent
4 (50%) virtual instruction, which shall be disaggregated for each
5 particular transferee school corporation and charter school,
6 excluding a virtual charter school or adult high school. The
7 projection may include an expected increase in charter schools
8 during the term the levy is imposed under this chapter. The
9 department of local government finance shall prescribe the manner
10 in which the projection shall be calculated. The governing body
11 shall take into consideration the projection when adopting the
12 revenue spending plan under subsection (g).
13 (e) (g) As part of the resolution described in subsection (a), the
14 governing body of the school corporation shall adopt a revenue
15 spending plan for the proposed referendum tax levy that includes:
16 (1) an estimate of the amount of annual revenue expected to be
17 collected if a levy is imposed under this chapter;
18 (2) the specific purposes for which the revenue collected from a
19 levy imposed under this chapter will be used; and
20 (3) an estimate of the annual dollar amounts that will be expended
21 for each purpose described in subdivision (2); and
22 (4) for a resolution for a referendum that is adopted after
23 June 30, 2023, the projected revenue that shall be distributed
24 to charter schools or transferee school corporations as
25 provided in subsection (f). The revenue spending plan shall
26 also take into consideration deviations in the proposed
27 revenue spending plan if the actual charter school and
28 transferee school corporation distributions exceed or are
29 lower than the projected charter school and transferee school
30 corporation distributions described in subsection (f).
31 (f) (h) A school corporation shall specify in its proposed budget the
32 school corporation's revenue spending plan adopted under subsection
33 (e) (g) and annually present the revenue spending plan at its public
34 hearing on the proposed budget under IC 6-1.1-17-3.
35 SECTION 12. IC 20-46-1-8.5, AS ADDED BY P.L.138-2016,
36 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2023]: Sec. 8.5. (a) A resolution to extend a referendum levy
38 must be:
39 (1) adopted by the governing body of a school corporation; and
40 (2) approved in a referendum under this chapter;
41 before December 31 of the final calendar year in which the school
42 corporation's previously approved referendum levy is imposed under
2023 IN 1607—LS 7216/DI 116 16
1 this chapter.
2 (b) For a resolution adopted under this section after June 30,
3 2023, the resolution must include the projected charter school and
4 transferee school corporation distributions described in section 8(f)
5 of this chapter and indicate the distributions to applicable charter
6 schools and transferee school corporations in accordance with
7 section 21 of this chapter.
8 SECTION 13. IC 20-46-1-10, AS AMENDED BY P.L.174-2022,
9 SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2023]: Sec. 10. (a) This section does not apply to a
11 referendum on a resolution certified to the department of local
12 government finance after March 15, 2016, to extend a referendum levy.
13 (b) The question to be submitted to the voters in the referendum
14 must read as follows:
15 "Shall the school corporation increase property taxes paid to the
16 school corporation schools by homeowners and businesses for
17 _____ (insert number of years) years immediately following the
18 holding of the referendum for the purpose of funding ______
19 (insert short description of purposes)? If this public question is
20 approved by the voters, the average property tax paid to the
21 school corporation schools per year on a residence would increase
22 by ______% (insert the estimated average percentage of property
23 tax increase paid to the school corporation schools on a residence
24 within the school corporation as determined under subsection (c))
25 and the average property tax paid to the school corporation
26 schools per year on a business property would increase by
27 ______% (insert the estimated average percentage of property tax
28 increase paid to the school corporation schools on a business
29 property within the school corporation as determined under
30 subsection (d)). The most recent property tax referendum
31 proposed by the school corporation was held in ______ (insert
32 year) and ________ (insert whether the measure passed or
33 failed).".
34 (c) At the request of the governing body of a school corporation that
35 proposes to impose property taxes under this chapter, the county
36 auditor of the county in which the school corporation is located shall
37 determine the estimated average percentage of property tax increase on
38 a homestead to be paid to the school corporation schools that must be
39 included in the public question under subsection (b) as follows:
40 STEP ONE: Determine the average assessed value of a homestead
41 located within the school corporation.
42 STEP TWO: For purposes of determining the net assessed value
2023 IN 1607—LS 7216/DI 116 17
1 of the average homestead located within the school corporation,
2 subtract:
3 (A) an amount for the homestead standard deduction under
4 IC 6-1.1-12-37 as if the homestead described in STEP ONE
5 was eligible for the deduction; and
6 (B) an amount for the supplemental homestead deduction
7 under IC 6-1.1-12-37.5 as if the homestead described in STEP
8 ONE was eligible for the deduction;
9 from the result of STEP ONE.
10 STEP THREE: Divide the result of STEP TWO by one hundred
11 (100).
12 STEP FOUR: Determine the overall average tax rate per one
13 hundred dollars ($100) of assessed valuation for the current year
14 imposed on property located within the school corporation.
15 STEP FIVE: For purposes of determining net property tax liability
16 of the average homestead located within the school corporation:
17 (A) multiply the result of STEP THREE by the result of STEP
18 FOUR; and
19 (B) as appropriate, apply any currently applicable county
20 property tax credit rates and the credit for excessive property
21 taxes under IC 6-1.1-20.6-7.5(a)(1).
22 STEP SIX: Determine the amount of the school corporation's part
23 of the result determined in STEP FIVE.
24 STEP SEVEN: Multiply:
25 (A) the tax rate that will be imposed if the public question is
26 approved by the voters; by
27 (B) the result of STEP THREE.
28 STEP EIGHT: Divide the result of STEP SEVEN by the result of
29 STEP SIX, expressed as a percentage.
30 (d) At the request of the governing body of a school corporation that
31 proposes to impose property taxes under this chapter, the county
32 auditor of the county in which the school corporation is located shall
33 determine the estimated average percentage of property tax increase on
34 a business property to be paid to the school corporation schools that
35 must be included in the public question under subsection (b) as
36 follows:
37 STEP ONE: Determine the average assessed value of business
38 property located within the school corporation.
39 STEP TWO: Divide the result of STEP ONE by one hundred
40 (100).
41 STEP THREE: Determine the overall average tax rate per one
42 hundred dollars ($100) of assessed valuation for the current year
2023 IN 1607—LS 7216/DI 116 18
1 imposed on property located within the school corporation.
2 STEP FOUR: For purposes of determining net property tax
3 liability of the average business property located within the school
4 corporation:
5 (A) multiply the result of STEP TWO by the result of STEP
6 THREE; and
7 (B) as appropriate, apply any currently applicable county
8 property tax credit rates and the credit for excessive property
9 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
10 was three percent (3%).
11 STEP FIVE: Determine the amount of the school corporation's
12 part of the result determined in STEP FOUR.
13 STEP SIX: Multiply:
14 (A) the result of STEP TWO; by
15 (B) the tax rate that will be imposed if the public question is
16 approved by the voters.
17 STEP SEVEN: Divide the result of STEP SIX by the result of
18 STEP FIVE, expressed as a percentage.
19 (e) The county auditor shall certify the estimated average percentage
20 of property tax increase on a homestead to be paid to the school
21 corporation schools determined under subsection (c), and the estimated
22 average percentage of property tax increase on a business property to
23 be paid to the school corporation schools determined under subsection
24 (d), in a manner prescribed by the department of local government
25 finance, and provide the certification to the governing body of the
26 school corporation that proposes to impose property taxes.
27 SECTION 14. IC 20-46-1-19.5, AS AMENDED BY P.L.272-2019,
28 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2023]: Sec. 19.5. (a) Subject to section 8(c) 8(d) of this
30 chapter, if a referendum is approved by the voters in a school
31 corporation under this chapter in a calendar year, another referendum
32 may not be placed on the ballot in the school corporation under this
33 chapter in the following calendar year.
34 (b) Notwithstanding any other provision of this chapter and in
35 addition to the restriction specified in subsection (a), if a school
36 corporation imposes in a calendar year a referendum levy approved in
37 a referendum under this chapter, the school corporation may not
38 simultaneously impose in that calendar year more than one (1)
39 additional referendum levy approved in a subsequent referendum under
40 this chapter.
41 SECTION 15. IC 20-46-1-20, AS ADDED BY P.L.198-2011,
42 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2023 IN 1607—LS 7216/DI 116 19
1 JULY 1, 2023]: Sec. 20. (a) Except as otherwise provided in this
2 section, during the period beginning with the adoption of a resolution
3 by the governing body of a school corporation to place a referendum
4 under this chapter on the ballot and continuing through the day on
5 which the referendum is submitted to the voters, the school corporation
6 may not promote a position on the referendum by doing any of the
7 following:
8 (1) Using facilities or equipment, including mail and messaging
9 systems, owned by the school corporation to promote a position
10 on the referendum, unless equal access to the facilities or
11 equipment is given to persons with a position opposite to that of
12 the school corporation.
13 (2) Making an expenditure of money from a fund controlled by
14 the school corporation to promote a position on the referendum.
15 (3) Using an employee to promote a position on the referendum
16 during the employee's normal working hours or paid overtime, or
17 otherwise compelling an employee to promote a position on the
18 referendum at any time. However, if a person described in
19 subsection (d) is advocating for or against a position on the
20 referendum or discussing the referendum as authorized under
21 subsection (d), an employee of the school corporation may assist
22 the person in presenting information on the referendum, if
23 requested to do so by the person described in subsection (d).
24 (4) Promoting a position on the referendum by:
25 (A) using students to transport written materials to their
26 residences or in any way involving students in a school
27 organized promotion of a position;
28 (B) including a statement within another communication sent
29 to the students' residences; or
30 (C) initiating discussion of the referendum at a meeting
31 between a teacher and parents of a student regarding the
32 student's performance or behavior at school. However, if the
33 parents initiate a discussion of the referendum at the meeting,
34 the teacher may acknowledge the issue and direct the parents
35 to a source of factual information on the referendum.
36 However, this section does not prohibit an official or employee of the
37 school corporation from carrying out duties with respect to a
38 referendum that are part of the normal and regular conduct of the
39 official's or employee's office or agency, including the furnishing of
40 factual information regarding the referendum in response to inquiries
41 from any person.
42 (b) The staff and employees of a school corporation may not
2023 IN 1607—LS 7216/DI 116 20
1 personally identify a student as the child of a parent or guardian who
2 supports or opposes the referendum.
3 (c) This subsection does not apply to:
4 (1) a personal expenditure to promote a position on a local public
5 question by an employee of a school corporation whose
6 employment is governed by a collective bargaining contract or an
7 employment contract; or
8 (2) an expenditure to promote a position on a local public
9 question by a person or an organization that has a contract or an
10 arrangement (whether formal or informal) with the school
11 corporation solely for the use of the school corporation's facilities.
12 A person or an organization that has a contract or arrangement
13 (whether formal or informal) with a school corporation to provide
14 goods or services to the school corporation may not spend any money
15 to promote a position on the petition or remonstrance. A person or an
16 organization that violates this subsection commits a Class A infraction.
17 (d) Notwithstanding any other law, an elected or appointed school
18 board member or a school corporation superintendent, school
19 corporation assistant superintendent, or chief school business official
20 of a school corporation may at any time:
21 (1) personally advocate for or against a position on a referendum;
22 or
23 (2) discuss the referendum with any individual, group, or
24 organization or personally advocate for or against a position on a
25 referendum before any individual, group, or organization;
26 so long as it is not done by using public funds. Advocacy or discussion
27 allowed under this subsection is not considered a use of public funds.
28 However, this subsection does not authorize or apply to advocacy or
29 discussion by a school board member, superintendent, assistant
30 superintendent, or school business official to or with students that
31 occurs during the regular school day.
32 (e) A student may use school equipment or facilities to report or
33 editorialize about a local public question as part of the news coverage
34 of the referendum by a student newspaper or broadcast.
35 (f) A transferee school corporation that may receive money
36 from a school corporation's tax levy under this chapter may not
37 promote a position on a referendum in the same manner as a
38 school corporation is prohibited from promoting a position on a
39 referendum.
40 SECTION 16. IC 20-46-1-21 IS ADDED TO THE INDIANA
41 CODE AS A NEW SECTION TO READ AS FOLLOWS
42 [EFFECTIVE JULY 1, 2023]: Sec. 21. (a) This section applies to
2023 IN 1607—LS 7216/DI 116 21
1 revenue received from a resolution that is approved by the
2 governing body to impose a referendum levy under section 8 or 8.5
3 of this chapter after June 30, 2023.
4 (b) The county auditor in which the school corporation is
5 located shall distribute an amount under subsection (d) to each
6 charter school or transferee school corporation that a student who
7 resides within the attendance area of the school corporation
8 attends. The department shall provide the county auditor with data
9 and information necessary for the county auditor to determine:
10 (1) which charter schools and transferee school corporations
11 are eligible to receive a distribution under this section; and
12 (2) the number of students who reside within the attendance
13 area of the school corporation who are included in the ADM
14 for each charter school or transferee school corporation
15 described in subdivision (1).
16 (c) The following schools are not eligible to receive a
17 distribution under this section:
18 (1) A virtual charter school.
19 (2) An adult high school.
20 (d) Except as provided in subsection (e), the amount that the
21 county auditor shall distribute to a charter school or transferee
22 school corporation under this section is the amount determined in
23 the last STEP of the following STEPS:
24 STEP ONE: Determine, for each charter school or transferee
25 school corporation that is eligible to receive a distribution
26 under this section, the number of students who reside within
27 the attendance area of the school corporation who are
28 currently included in the ADM of the charter school or
29 transferee school corporation.
30 STEP TWO: Determine the sum of:
31 (A) the current ADM count for the school corporation;
32 plus
33 (B) the STEP ONE amount.
34 STEP THREE: Determine the result of:
35 (A) the STEP ONE amount; divided by
36 (B) the STEP TWO amount.
37 STEP FOUR: Determine the result of:
38 (A) the STEP THREE amount; multiplied by
39 (B) the amount collected by the county auditor during the
40 most recent installment period.
41 (e) The total amount of money distributed to applicable charter
42 schools and transferee school corporations under this section for
2023 IN 1607—LS 7216/DI 116 22
1 a particular year may not exceed one hundred ten percent (110%)
2 of the total amount of money that is projected to be distributed to
3 all applicable charter schools or transferee school corporations
4 under section 8(f) of this chapter for that particular year. If the
5 total amount of money to be distributed to charter schools and
6 transferee school corporations for a particular year exceeds one
7 hundred ten percent (110%) of the amount projected to be
8 distributed to all applicable charter schools and transferee school
9 corporations under section 8(f) of this chapter, the amount that is
10 actually distributed to each charter school and transferee school
11 corporation under subsection (d) shall be proportionately reduced
12 so that the total amount of money distributed to all applicable
13 charter schools and transferee school corporations during that
14 particular year equals an amount determined under the last STEP
15 of the following STEPS:
16 STEP ONE: Determine the amount projected to be
17 distributed to all applicable charter schools and transferee
18 school corporations under section 8(f) of this chapter for that
19 particular year.
20 STEP TWO: Multiply the STEP ONE amount by ten percent
21 (10%).
22 STEP THREE: Add the STEP TWO amount to the STEP
23 ONE amount.
24 SECTION 17. IC 20-46-8-11 IS ADDED TO THE INDIANA
25 CODE AS A NEW SECTION TO READ AS FOLLOWS
26 [EFFECTIVE JANUARY 1, 2024]: Sec. 11. (a) This section applies
27 only to revenue collected after December 31, 2023, from a tax levy
28 imposed under this chapter.
29 (b) Subject to subsection (c), the county auditor shall distribute,
30 as provided under subsection (f), an amount of revenue received
31 from a tax levy imposed by a school corporation under this chapter
32 to each:
33 (1) charter school that a student who receives not more than
34 fifty percent (50%) virtual instruction and who has legal
35 settlement in the school corporation attends; and
36 (2) transferee school corporation that a transferred student
37 who has legal settlement in the school corporation attends.
38 (c) The following schools are not eligible to receive a
39 distribution under this section:
40 (1) A virtual charter school.
41 (2) An adult high school.
42 (d) Not later than thirty (30) days before the date that the
2023 IN 1607—LS 7216/DI 116 23
1 county auditor distributes money for the school corporation's
2 operations fund (IC 20-40-18) under IC 6-1.1-27, the department
3 shall determine the corresponding percentages of revenue received
4 from the tax levy that must be distributed among the school
5 corporation, each eligible charter school, and each eligible
6 transferee school corporation according to the following formula:
7 STEP ONE: Determine each:
8 (A) charter school that a student who receives not more
9 than fifty percent (50%) virtual instruction and who has
10 legal settlement in the school corporation attends; and
11 (B) transferee school corporation that a transferred
12 student who has legal settlement in the school corporation
13 attends.
14 STEP TWO: Determine, for each:
15 (A) charter school described in clause (A) of STEP ONE,
16 the number of students who:
17 (i) have legal settlement within the school corporation;
18 (ii) are currently included in the ADM for the charter
19 school; and
20 (iii) receive not more than fifty percent (50%) virtual
21 instruction; and
22 (B) transferee school corporation described in clause (B) of
23 STEP ONE, the number of students who:
24 (i) have legal settlement within the school corporation;
25 and
26 (ii) are currently included in the ADM for the transferee
27 school corporation.
28 STEP THREE: Determine the sum of:
29 (A) the aggregate of the STEP TWO results for all
30 applicable charter schools and all applicable transferee
31 school corporations; plus
32 (B) the current ADM count for the school corporation.
33 STEP FOUR: For each charter school described in clause (A)
34 of STEP ONE and each transferee school corporation
35 described in clause (B) of STEP ONE, determine the result of:
36 (A) the applicable STEP TWO amount; divided by
37 (B) the STEP THREE amount;
38 expressed as a percentage.
39 STEP FIVE: Determine the sum of all of the amounts
40 computed under STEP FOUR and subtract the result from
41 one hundred percent (100%).
42 (e) The department shall provide:
2023 IN 1607—LS 7216/DI 116 24
1 (1) each charter school determined under STEP ONE of
2 subsection (d) and the charter school's corresponding
3 percentage calculated under STEP FOUR of subsection (d);
4 (2) each transferee school corporation determined under
5 STEP ONE of subsection (d) and the transferee school
6 corporation's corresponding percentage calculated under
7 STEP FOUR of subsection (d); and
8 (3) the percentage calculated under STEP FIVE of subsection
9 (d) for the school corporation;
10 to the county auditor in the form prescribed by the county auditor.
11 (f) The county auditor shall distribute to the school corporation,
12 each applicable charter school, and each applicable transferee
13 school corporation the amount determined in the last STEP of the
14 following STEPS:
15 STEP ONE: For the school corporation, each applicable
16 charter school, and each applicable transferee school
17 corporation, determine the result of:
18 (A) in the case of:
19 (i) an applicable charter school, the applicable
20 percentage under STEP FOUR of subsection (d);
21 (ii) an applicable transferee school corporation, the
22 applicable percentage under STEP FOUR of subsection
23 (d); and
24 (iii) the school corporation, the applicable percentage
25 under STEP FIVE of subsection (d); multiplied by
26 (B) the amount collected by the county treasurer during
27 the most recent installment period.
28 STEP TWO: Determine the result of the following:
29 (A) For distributions made in 2024, an amount equal to:
30 (i) in the case of each applicable charter school and each
31 applicable transferee school corporation, thirty-three
32 and thirty-three hundredths percent (33.33%) of the
33 STEP ONE amount; and
34 (ii) in the case of the school corporation, the amount
35 collected by the county treasurer during the most recent
36 installment period that remains after subtracting each of
37 the amounts to be distributed to applicable charter
38 schools and applicable transferee school corporations
39 under item (i).
40 (B) For distributions made in 2025, an amount equal to:
41 (i) in the case of each applicable charter school and each
42 applicable transferee school corporation, sixty-six and
2023 IN 1607—LS 7216/DI 116 25
1 sixty-seven hundredths percent (66.67%) of the STEP
2 ONE amount; and
3 (ii) in the case of the school corporation, the amount
4 collected by the county treasurer during the most recent
5 installment period that remains after subtracting each of
6 the amounts to be distributed to applicable charter
7 schools and applicable transferee school corporations,
8 under item (i).
9 (C) For distributions made in 2026 and each year
10 thereafter, an amount equal to:
11 (i) in the case of the school corporation, one hundred
12 percent (100%);
13 (ii) in the case of each applicable charter school, one
14 hundred percent (100%); and
15 (iii) in the case of each transferee school corporation, one
16 hundred percent (100%);
17 of the STEP ONE amount determined for the school
18 corporation, the applicable charter school, and the
19 applicable transferee school corporation.
20 SECTION 18. IC 20-46-9-6, AS AMENDED BY P.L.174-2022,
21 SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2023]: Sec. 6. (a) Subject to this chapter, the governing body
23 of a school corporation may adopt a resolution to place a referendum
24 under this chapter on the ballot if the governing body of the school
25 corporation determines that a referendum levy should be imposed for
26 measures to improve school safety as described in IC 20-40-20-6(a) or
27 IC 20-40-20-6(b).
28 (b) This subsection applies to a resolution described in
29 subsection (a) that is adopted before July 1, 2023. A school
30 corporation may, with the approval of the majority of members of the
31 governing body, distribute a portion of the proceeds of a tax levy
32 collected under this chapter that is deposited in the fund to a charter
33 school, excluding a virtual charter school, that is located within the
34 attendance area of the school corporation, to be used by the charter
35 school for the purposes described in IC 20-40-20-6(a).
36 (c) This subsection applies to a resolution described in
37 subsection (a) that is adopted after June 30, 2023. A resolution
38 shall specify that a portion of the proceeds of the proposed levy will
39 be distributed to applicable charter schools or transferee school
40 corporations in the manner described under section 22 of this
41 chapter.
42 (d) This subsection applies to a resolution described in
2023 IN 1607—LS 7216/DI 116 26
1 subsection (a) that is adopted after June 30, 2023. The resolution
2 described in subsection (a) shall include a projection of the amount
3 that the school corporation expects to be distributed to a particular
4 transferee school corporation or charter school, excluding virtual
5 charter schools or adult high schools, under section 22 of this
6 chapter. At least sixty (60) days before the resolution described in
7 subsection (a) is voted on by the governing body, the school
8 corporation shall contact the department to determine the number
9 of students in kindergarten through grade 12 who have legal
10 settlement in the school corporation but attend a transferee school
11 corporation or charter school, excluding virtual charter schools or
12 adult high schools, and who receive not more than fifty percent
13 (50%) virtual instruction. The department shall provide the school
14 corporation with the number of students with legal settlement in
15 the school corporation who attend a transferee school corporation
16 or charter school, which shall be disaggregated for each particular
17 transferee school corporation and charter school, excluding a
18 virtual charter school or adult high school. The projection may
19 include an expected increase in charter schools during the term the
20 levy is imposed. The department of local government finance shall
21 prescribe the manner in which the projection shall be calculated.
22 The governing body shall take into consideration the projection
23 when adopting the revenue spending plan under subsection (g).
24 (c) (e) The governing body of the school corporation shall certify a
25 copy of the resolution to the following:
26 (1) The department of local government finance, including:
27 (A) the language for the question required by section 9 of this
28 chapter, or in the case of a resolution to extend a referendum
29 levy certified to the department of local government finance,
30 section 10 of this chapter; and
31 (B) a copy of the revenue spending plan adopted under
32 subsection (e). (g).
33 The language of the public question must include the estimated
34 average percentage increases certified by the county auditor under
35 section 9(d) or 10(f) of this chapter, as applicable. The governing
36 body of the school corporation shall also provide the county
37 auditor's certification described in section 9(d) or 10(f) of this
38 chapter, as applicable. The department of local government
39 finance shall post the values certified by the county auditor to the
40 department's Internet web site. website. The department shall
41 review the language for compliance with section 9 or 10 of this
42 chapter, whichever is applicable, and either approve or reject the
2023 IN 1607—LS 7216/DI 116 27
1 language. The department shall send its decision to the governing
2 body of the school corporation not more than ten (10) days after
3 the resolution is submitted to the department. If the language is
4 approved, the governing body of the school corporation shall
5 certify a copy of the resolution, including the language for the
6 question and the department's approval.
7 (2) The county fiscal body of each county in which the school
8 corporation is located (for informational purposes only).
9 (3) The circuit court clerk of each county in which the school
10 corporation is located.
11 (d) (f) This subsection applies to a resolution described in
12 subsection (a) that is adopted before July 1, 2023. The resolution
13 described in subsection (a) must indicate whether proceeds in the
14 school corporation's fund collected from a tax levy under this chapter
15 will be used to provide a distribution to a charter school or charter
16 schools, excluding a virtual charter school, under IC 20-40-20-6(b) as
17 well as the amount that will be distributed to the particular charter
18 school or charter schools. A school corporation may request from the
19 designated charter school or charter schools any financial
20 documentation necessary to demonstrate the financial need of the
21 charter school or charter schools.
22 (e) (g) As part of the resolution described in subsection (a), the
23 governing body of the school corporation shall adopt a revenue
24 spending plan for the proposed referendum tax levy that includes:
25 (1) an estimate of the amount of annual revenue expected to be
26 collected if a levy is imposed under this chapter;
27 (2) the specific purposes described in IC 20-40-20-6 for which the
28 revenue collected from a levy imposed under this chapter will be
29 used; and
30 (3) an estimate of the annual dollar amounts that will be expended
31 for each purpose described in subdivision (2); and
32 (4) for a resolution for a referendum that is adopted after
33 June 30, 2023, the projected revenue that shall be distributed
34 to charter schools or transferee school corporations as
35 provided in subsection (d). The revenue spending plan shall
36 also take into consideration deviations in the proposed
37 revenue spending plan if the actual charter school and
38 transferee school corporation distributions exceed or are
39 lower than the projected charter school and transferee school
40 corporation distributions described in subsection (d).
41 (f) (h) A school corporation shall specify in its proposed budget the
42 school corporation's revenue spending plan adopted under subsection
2023 IN 1607—LS 7216/DI 116 28
1 (e) (g) and annually present the revenue spending plan at its public
2 hearing on the proposed budget under IC 6-1.1-17-3.
3 SECTION 19. IC 20-46-9-7, AS ADDED BY P.L.272-2019,
4 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2023]: Sec. 7. (a) A resolution to extend a referendum levy
6 must be:
7 (1) adopted by the governing body of a school corporation; and
8 (2) approved in a referendum under this chapter;
9 before December 31 of the final calendar year in which the school
10 corporation's previously approved referendum levy is imposed under
11 this chapter.
12 (b) For a resolution adopted under this section after June 30,
13 2023, the resolution must include the projected charter school and
14 transferee school corporation distributions described in section
15 6(d) of this chapter and indicate the distributions to applicable
16 charter schools and transferee school corporations in accordance
17 with section 22 of this chapter.
18 SECTION 20. IC 20-46-9-9, AS AMENDED BY P.L.174-2022,
19 SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2023]: Sec. 9. (a) The question to be submitted to the voters
21 in the referendum must read as follows:
22 "Shall the school corporation increase property taxes paid to the
23 school corporation schools by homeowners and businesses for
24 _____ (insert number of years) years immediately following the
25 holding of the referendum for the purpose of funding ______
26 (insert short description of purposes)? If this public question is
27 approved by the voters, the average property tax paid to the
28 school corporation schools per year on a residence would increase
29 by ______% (insert the estimated average percentage of property
30 tax increase paid to the school corporation schools on a residence
31 within the school corporation as determined under subsection (b))
32 and the average property tax paid to the school corporation
33 schools per year on a business property would increase by
34 ______% (insert the estimated average percentage of property tax
35 increase paid to the school corporation schools on a business
36 property within the school corporation as determined under
37 subsection (c)). The most recent property tax referendum
38 proposed by the school corporation was held in ______ (insert
39 year) and ________ (insert whether the measure passed or
40 failed).".
41 (b) At the request of the governing body of a school corporation that
42 proposes to impose property taxes under this chapter, the county
2023 IN 1607—LS 7216/DI 116 29
1 auditor of the county in which the school corporation is located shall
2 determine the estimated average percentage of property tax increase on
3 a homestead to be paid to the school corporation that must be included
4 in the public question under subsection (a) as follows:
5 STEP ONE: Determine the average assessed value of a homestead
6 located within the school corporation.
7 STEP TWO: For purposes of determining the net assessed value
8 of the average homestead located within the school corporation,
9 subtract:
10 (A) an amount for the homestead standard deduction under
11 IC 6-1.1-12-37 as if the homestead described in STEP ONE
12 was eligible for the deduction; and
13 (B) an amount for the supplemental homestead deduction
14 under IC 6-1.1-12-37.5 as if the homestead described in STEP
15 ONE was eligible for the deduction;
16 from the result of STEP ONE.
17 STEP THREE: Divide the result of STEP TWO by one hundred
18 (100).
19 STEP FOUR: Determine the overall average tax rate per one
20 hundred dollars ($100) of assessed valuation for the current year
21 imposed on property located within the school corporation.
22 STEP FIVE: For purposes of determining net property tax liability
23 of the average homestead located within the school corporation:
24 (A) multiply the result of STEP THREE by the result of STEP
25 FOUR; and
26 (B) as appropriate, apply any currently applicable county
27 property tax credit rates and the credit for excessive property
28 taxes under IC 6-1.1-20.6-7.5(a)(1).
29 STEP SIX: Determine the amount of the school corporation's part
30 of the result determined in STEP FIVE.
31 STEP SEVEN: Multiply:
32 (A) the tax rate that will be imposed if the public question is
33 approved by the voters; by
34 (B) the result of STEP THREE.
35 STEP EIGHT: Divide the result of STEP SEVEN by the result of
36 STEP SIX, expressed as a percentage.
37 (c) At the request of the governing body of a school corporation that
38 proposes to impose property taxes under this chapter, the county
39 auditor of the county in which the school corporation is located shall
40 determine the estimated average percentage of property tax increase on
41 a business property to be paid to the school corporation that must be
42 included in the public question under subsection (a) as follows:
2023 IN 1607—LS 7216/DI 116 30
1 STEP ONE: Determine the average assessed value of business
2 property located within the school corporation.
3 STEP TWO: Divide the result of STEP ONE by one hundred
4 (100).
5 STEP THREE: Determine the overall average tax rate per one
6 hundred dollars ($100) of assessed valuation for the current year
7 imposed on property located within the school corporation.
8 STEP FOUR: For purposes of determining net property tax
9 liability of the average business property located within the school
10 corporation:
11 (A) multiply the result of STEP TWO by the result of STEP
12 THREE; and
13 (B) as appropriate, apply any currently applicable county
14 property tax credit rates and the credit for excessive property
15 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
16 was three percent (3%).
17 STEP FIVE: Determine the amount of the school corporation's
18 part of the result determined in STEP FOUR.
19 STEP SIX: Multiply:
20 (A) the result of STEP TWO; by
21 (B) the tax rate that will be imposed if the public question is
22 approved by the voters.
23 STEP SEVEN: Divide the result of STEP SIX by the result of
24 STEP FIVE, expressed as a percentage.
25 (d) The county auditor shall certify the estimated average
26 percentage of property tax increase on a homestead to be paid to the
27 school corporation schools determined under subsection (b), and the
28 estimated average percentage of property tax increase on a business
29 property to be paid to the school corporation schools determined under
30 subsection (c), in a manner prescribed by the department of local
31 government finance, and provide the certification to the governing
32 body of the school corporation that proposes to impose property taxes.
33 SECTION 21. IC 20-46-9-21, AS ADDED BY P.L.272-2019,
34 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2023]: Sec. 21. (a) Except as otherwise provided in this
36 section, during the period beginning with the adoption of a resolution
37 by the governing body of a school corporation to place a referendum
38 under this chapter on the ballot and continuing through the day on
39 which the referendum is submitted to the voters, the school corporation
40 may not promote a position on the referendum by doing any of the
41 following:
42 (1) Using facilities or equipment, including mail and messaging
2023 IN 1607—LS 7216/DI 116 31
1 systems, owned by the school corporation to promote a position
2 on the referendum, unless equal access to the facilities or
3 equipment is given to persons with a position opposite to that of
4 the school corporation.
5 (2) Making an expenditure of money from a fund controlled by
6 the school corporation to promote a position on the referendum.
7 (3) Using an employee to promote a position on the referendum
8 during the employee's normal working hours or paid overtime, or
9 otherwise compelling an employee to promote a position on the
10 referendum at any time. However, if a person described in
11 subsection (d) is advocating for or against a position on the
12 referendum or discussing the referendum as authorized under
13 subsection (d), an employee of the school corporation may assist
14 the person in presenting information on the referendum, if
15 requested to do so by the person described in subsection (d).
16 (4) Promoting a position on the referendum by:
17 (A) using students to transport written materials to their
18 residences or in any way involving students in a school
19 organized promotion of a position;
20 (B) including a statement within another communication sent
21 to the students' residences; or
22 (C) initiating discussion of the referendum at a meeting
23 between a teacher and parents of a student regarding the
24 student's performance or behavior at school. However, if the
25 parents initiate a discussion of the referendum at the meeting,
26 the teacher may acknowledge the issue and direct the parents
27 to a source of factual information on the referendum.
28 However, this section does not prohibit an official or employee of the
29 school corporation from carrying out duties with respect to a
30 referendum that are part of the normal and regular conduct of the
31 official's or employee's office or agency, including the furnishing of
32 factual information regarding the referendum in response to inquiries
33 from any person.
34 (b) The staff and employees of a school corporation may not
35 personally identify a student as the child of a parent or guardian who
36 supports or opposes the referendum.
37 (c) This subsection does not apply to:
38 (1) a personal expenditure to promote a position on a local public
39 question by an employee of a school corporation whose
40 employment is governed by a collective bargaining contract or an
41 employment contract; or
42 (2) an expenditure to promote a position on a local public
2023 IN 1607—LS 7216/DI 116 32
1 question by a person or an organization that has a contract or an
2 arrangement (whether formal or informal) with the school
3 corporation solely for the use of the school corporation's facilities.
4 A person or an organization that has a contract or arrangement
5 (whether formal or informal) with a school corporation to provide
6 goods or services to the school corporation may not spend any money
7 to promote a position on the petition or remonstrance. A person or an
8 organization that violates this subsection commits a Class A infraction.
9 (d) Notwithstanding any other law, an elected or appointed school
10 board member or a school corporation superintendent, school
11 corporation assistant superintendent, or chief school business official
12 of a school corporation may at any time:
13 (1) personally advocate for or against a position on a referendum;
14 or
15 (2) discuss the referendum with any individual, group, or
16 organization or personally advocate for or against a position on a
17 referendum before any individual, group, or organization;
18 so long as it is not done by using public funds. Advocacy or discussion
19 allowed under this subsection is not considered a use of public funds.
20 However, this subsection does not authorize or apply to advocacy or
21 discussion by a school board member, superintendent, assistant
22 superintendent, or school business official to or with students that
23 occurs during the regular school day.
24 (e) A student may use school equipment or facilities to report or
25 editorialize about a local public question as part of the news coverage
26 of the referendum by a student newspaper or broadcast.
27 (f) This subsection applies to a levy resulting from a resolution
28 to place a referendum on the ballot adopted by the governing body
29 under section 6 or 7 of this chapter after June 30, 2023. A
30 transferee school corporation that may receive money from a
31 school corporation's tax levy under this chapter may not promote
32 a position on a referendum in the same manner as a school
33 corporation is prohibited from promoting a position on a
34 referendum.
35 SECTION 22. IC 20-46-9-22 IS ADDED TO THE INDIANA
36 CODE AS A NEW SECTION TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2023]: Sec. 22. (a) This section applies to
38 revenue received from a resolution that is approved by the
39 governing body to impose a referendum levy under section 6 or 7
40 of this chapter after June 30, 2023.
41 (b) The county auditor shall distribute an amount under
42 subsection (d) to each charter school or transferee school
2023 IN 1607—LS 7216/DI 116 33
1 corporation that a student who resides within the attendance area
2 of the school corporation attends. The department shall provide
3 the county auditor with data and information necessary for the
4 county auditor to determine:
5 (1) which charter schools or transferee school corporations
6 are eligible to receive a distribution under this section; and
7 (2) the number of students who reside within the attendance
8 area of the school corporation who are included in the ADM
9 for each charter school or transferee school corporation
10 described in subdivision (1).
11 (c) The following schools are not eligible to receive a
12 distribution under this section:
13 (1) A virtual charter school.
14 (2) An adult high school.
15 (d) Except as provided in subsection (e), the amount that the
16 county auditor shall distribute to a charter school or transferee
17 school corporation under this section is the amount determined in
18 the last STEP of the following STEPS:
19 STEP ONE: Determine, for each charter school and
20 transferee school corporation that is eligible to receive a
21 distribution under this section, the number of students who
22 reside within the attendance area of the school corporation
23 who are currently included in the ADM of the charter school
24 or transferee school corporation.
25 STEP TWO: Determine the sum of:
26 (A) the current ADM count for the school corporation;
27 plus
28 (B) the STEP ONE amount.
29 STEP THREE: Determine the result of:
30 (A) the STEP ONE amount; divided by
31 (B) the STEP TWO amount.
32 STEP FOUR: Determine the result of:
33 (A) the STEP THREE amount; multiplied by
34 (B) the amount collected by the county auditor during the
35 most recent installment period.
36 (e) If a charter school or transferee school corporation receives
37 a distribution under this section, the distribution may be used only
38 for the purposes described in IC 20-40-20-6(a).
39 (f) The total amount of money distributed to applicable charter
40 schools or transferee school corporations under this section for a
41 particular year may not exceed one hundred ten percent (110%) of
42 the total amount of money that is projected to be distributed to all
2023 IN 1607—LS 7216/DI 116 34
1 applicable charter schools or transferee school corporations under
2 section 6(d) of this chapter for that particular year. If the total
3 amount of money to be distributed to charter schools and
4 transferee school corporations for a particular year exceeds one
5 hundred ten percent (110%) of the amount projected to be
6 distributed to all applicable charter schools and transferee school
7 corporations under section 6(d) of this chapter, the amount that is
8 actually distributed to each charter school or transferee school
9 corporation under subsection (d) shall be proportionately reduced
10 so that the total amount of money distributed to all applicable
11 charter schools and transferee school corporations during that
12 particular year equals an amount determined under the last STEP
13 of the following STEPS:
14 STEP ONE: Determine the amount projected to be
15 distributed to all applicable charter schools and transferee
16 school corporations under section 6(d) of this chapter for that
17 particular year.
18 STEP TWO: Multiply the STEP ONE amount by ten percent
19 (10%).
20 STEP THREE: Add the STEP TWO amount to the STEP
21 ONE amount.
22 SECTION 23. IC 20-49-3-8, AS AMENDED BY P.L.211-2018(ss),
23 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2023]: Sec. 8. The fund may be used to make advances:
25 (1) to school corporations, including school corporation career
26 and technical education schools described in IC 20-37-1-1, under
27 IC 20-49-4 and IC 20-49-5;
28 (2) to charter schools approved to obtain an advance under
29 IC 20-49-11-7;
30 (2) (3) under IC 20-49-6;
31 (3) (4) to charter and innovation network schools under
32 IC 20-49-9; and
33 (4) (5) to a school corporation or charter school (or a coalition of
34 public schools applying jointly) under IC 20-49-10.
35 Unless the context clearly requires otherwise, a reference to a school
36 corporation in this chapter includes a school corporation career and
37 technical education school described in IC 20-37-1-1. However, an
38 advance to a school corporation career and technical education school
39 described in IC 20-37-1-1 is not considered an advance to a school
40 corporation for purposes of determining if the school corporation career
41 and technical education school described in IC 20-37-1-1 qualifies for
42 an advance.
2023 IN 1607—LS 7216/DI 116 35
1 SECTION 24. IC 20-49-4-1, AS AMENDED BY P.L.233-2015,
2 SECTION 312, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2023]: Sec. 1. This chapter applies to:
4 (1) school corporations organized and formed through
5 reorganization under IC 20-23-4, IC 20-23-6, or IC 20-23-7; and
6 (2) school corporation career and technical education schools
7 described in IC 20-37-1-1; and
8 (3) charter schools approved to obtain an advance under
9 IC 20-49-11-7.
10 Unless the context clearly requires otherwise, a reference to a school
11 corporation in this chapter includes a school corporation career and
12 technical education school described in IC 20-37-1-1.
13 SECTION 25. IC 20-49-4-2, AS ADDED BY P.L.2-2006,
14 SECTION 172, IS AMENDED TO READ AS FOLLOWS
15 [EFFECTIVE JULY 1, 2023]: Sec. 2. Sections 9, 12, and 13 of this
16 chapter do not apply if a school corporation or charter school sustains
17 loss from a disaster.
18 SECTION 26. IC 20-49-4-3.5 IS ADDED TO THE INDIANA
19 CODE AS A NEW SECTION TO READ AS FOLLOWS
20 [EFFECTIVE JULY 1, 2023]: Sec. 3.5. (a) As used in this chapter,
21 "charter school" refers to a school established under IC 20-24.
22 (b) The term does not include the following:
23 (1) A virtual charter school (as defined in IC 20-24-1-10).
24 (2) An adult high school (as defined in IC 20-24-1-2.3).
25 SECTION 27. IC 20-49-4-7, AS AMENDED BY P.L.40-2014,
26 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2023]: Sec. 7. (a) As used in this chapter, "school building
28 construction program" means the following:
29 (1) The purchase, lease, or financing of land, the construction and
30 equipping of school buildings, and the remodeling, repairing, or
31 improving of school buildings by a school corporation:
32 (1) (A) that sustained a loss from a disaster;
33 (2) (B) whose adjusted assessed valuation (as determined
34 under IC 6-1.1-34-8) per current ADM is within the lowest
35 forty percent (40%) of the assessed valuation per current ADM
36 when compared with all school corporation adjusted assessed
37 valuation (as adjusted (if applicable) under IC 6-1.1-34-8) per
38 current ADM; or
39 (3) (C) with an advance under this chapter outstanding on July
40 1, 1993, that bears interest of at least seven and one-half
41 percent (7.5%).
42 (2) The purchase, lease, or financing of land, the construction
2023 IN 1607—LS 7216/DI 116 36
1 and equipping of school buildings, and the remodeling,
2 repairing, or improving of school buildings by a charter
3 school approved to receive an advance under IC 20-49-11-7.
4 This subdivision includes the attainment of an advance to
5 repay existing leases or debt obtained by a charter school for
6 the purpose of making improvements to charter school
7 property.
8 (b) The term does not include facilities used or to be used primarily
9 for interscholastic or extracurricular activities. If a program involves a
10 school corporation career and technical education school described in
11 IC 20-37-1-1, the adjusted assessed valuation and current ADM of all
12 those school corporations that are members of the career and technical
13 education school are to be used for making determinations under this
14 section.
15 SECTION 28. IC 20-49-4-8, AS ADDED BY P.L.2-2006,
16 SECTION 172, IS AMENDED TO READ AS FOLLOWS
17 [EFFECTIVE JULY 1, 2023]: Sec. 8. (a) The state board may advance
18 money to school corporations to be used for:
19 (1) school building construction programs; and
20 (2) educational technology programs;
21 as provided in this chapter.
22 (b) The state board shall advance money to a charter school
23 approved to receive an advance under IC 20-49-11-7 in accordance
24 with IC 20-49-11-8 to be used for:
25 (1) school building construction programs; and
26 (2) educational technology programs;
27 as provided in this chapter.
28 SECTION 29. IC 20-49-4-9, AS AMENDED BY P.L.40-2014,
29 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2023]: Sec. 9. (a) This section does not apply to a charter
31 school approved to receive an advance under IC 20-49-11-7.
32 (b) Priority of advances for school building construction programs
33 shall be made to school corporations that have the least amount of
34 adjusted assessed valuation (as determined under IC 6-1.1-34-8) per
35 student in current ADM. If a program involves a school corporation
36 career and technical education school described in IC 20-37-1-1, the
37 adjusted assessed valuation and current ADM of all those school
38 corporations that are members of the career and technical education
39 school are to be used for making determinations under this section.
40 SECTION 30. IC 20-49-4-10, AS ADDED BY P.L.2-2006,
41 SECTION 172, IS AMENDED TO READ AS FOLLOWS
42 [EFFECTIVE JULY 1, 2023]: Sec. 10. (a) This section does not apply
2023 IN 1607—LS 7216/DI 116 37
1 to a charter school approved to receive an advance under
2 IC 20-49-11-7.
3 (b) Priority of advances for educational technology programs shall
4 be on whatever basis the state board, after consulting with the
5 department and the budget agency, periodically determines.
6 SECTION 31. IC 20-49-4-11, AS ADDED BY P.L.2-2006,
7 SECTION 172, IS AMENDED TO READ AS FOLLOWS
8 [EFFECTIVE JULY 1, 2023]: Sec. 11. (a) A school corporation
9 desiring to obtain an advance must submit an application to the state
10 board in the form established by the state board, after consulting with
11 the department and the budget agency.
12 (b) A charter school organizer (as defined in IC 20-24-1-7) shall
13 submit an application for an advance in the manner prescribed in
14 IC 20-49-11-6.
15 SECTION 32. IC 20-49-4-12, AS AMENDED BY P.L.244-2017,
16 SECTION 120, IS AMENDED TO READ AS FOLLOWS
17 [EFFECTIVE JULY 1, 2023]: Sec. 12. (a) For a school corporation
18 or charter school to qualify for an advance under this chapter, a:
19 (1) school corporation must establish an operations fund under
20 IC 20-40-18; and
21 (2) charter school must establish an operations fund.
22 (b) The state board, after consulting with the department and the
23 budget agency, may waive or modify this the requirement under this
24 section upon a showing of good cause by the school corporation or
25 charter school.
26 SECTION 33. IC 20-49-4-13, AS ADDED BY P.L.2-2006,
27 SECTION 172, IS AMENDED TO READ AS FOLLOWS
28 [EFFECTIVE JULY 1, 2023]: Sec. 13. An advance to a school
29 corporation or charter school for any school building construction
30 program may not exceed the greater of the following:
31 (1) Fifteen million dollars ($15,000,000).
32 (2) The product of fifteen thousand dollars ($15,000) multiplied
33 by the number of students accommodated as a result of the school
34 building construction program.
35 However, if a school corporation or charter school has sustained loss
36 by disaster, this limitation may be waived by the state board after
37 consulting with the department and the budget agency.
38 SECTION 34. IC 20-49-4-14, AS ADDED BY P.L.2-2006,
39 SECTION 172, IS AMENDED TO READ AS FOLLOWS
40 [EFFECTIVE JULY 1, 2023]: Sec. 14. An advance for an educational
41 technology program is without limitation in amount other than the
42 availability of funds in the fund for this purpose and the ability of the
2023 IN 1607—LS 7216/DI 116 38
1 school corporation or charter school desiring an advance to pay the
2 advance according to the terms of the advance.
3 SECTION 35. IC 20-49-4-15, AS ADDED BY P.L.2-2006,
4 SECTION 172, IS AMENDED TO READ AS FOLLOWS
5 [EFFECTIVE JULY 1, 2023]: Sec. 15. (a) Money advanced to a school
6 corporation or charter school for a school building construction
7 program may be advanced for a period not exceeding twenty-five (25)
8 years. The school corporation or charter school to which money is
9 advanced must pay interest on the advance. For advances made before
10 July 1, 1993, the state board may provide, either before an advance is
11 made or before an advance is fully paid, that the payment of the
12 advance may not be prepaid by more than six (6) months. For advances
13 made after June 30, 1993, for school building construction programs,
14 the state board may provide that the advances are prepayable at any
15 time.
16 (b) The state board of finance shall periodically establish the rate or
17 rates of interest payable on advances for school building construction
18 programs as long as:
19 (1) the established interest rate or rates do not exceed seven and
20 one-half percent (7.5%); and
21 (2) the interest rate or rates on advances made to school
22 corporations with advances outstanding on July 1, 1993, bearing
23 interest at seven and one-half percent (7.5%) or more shall not
24 exceed four percent (4%).
25 SECTION 36. IC 20-49-4-16, AS ADDED BY P.L.2-2006,
26 SECTION 172, IS AMENDED TO READ AS FOLLOWS
27 [EFFECTIVE JULY 1, 2023]: Sec. 16. (a) Money advanced to a school
28 corporation or charter school for an educational technology program
29 may be for a period not exceeding five (5) years. The school
30 corporation or charter school to which an advance is made shall pay
31 interest on the advance. Advances for educational technology programs
32 may be prepaid at any time.
33 (b) The state board of finance shall periodically establish the rate or
34 rates of interest payable on advances for educational technology
35 programs as long as the established interest rate or rates:
36 (1) are not less than one percent (1%); and
37 (2) do not exceed four percent (4%).
38 SECTION 37. IC 20-49-4-17, AS ADDED BY P.L.2-2006,
39 SECTION 172, IS AMENDED TO READ AS FOLLOWS
40 [EFFECTIVE JULY 1, 2023]: Sec. 17. An advance is not an obligation
41 of the school corporation within the meaning of the limitation on or
42 prohibition against indebtedness under the Constitution of the State of
2023 IN 1607—LS 7216/DI 116 39
1 Indiana. Nothing in this chapter relieves the governing body of a school
2 corporation or charter school receiving an advance of any obligation
3 under Indiana law to qualify the school corporation or charter school
4 for state tuition support. The school corporation or charter school
5 shall continue to perform all acts necessary to obtain these funds.
6 SECTION 38. IC 20-49-4-18, AS AMENDED BY P.L.40-2014,
7 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2023]: Sec. 18. (a) This section does not apply to a charter
9 school unless the state board suspends repayment of an advance
10 and interest on the advance from the public school options fund
11 established in IC 20-49-11-5 in accordance with IC 20-49-11-9(b).
12 (b) To ensure timely payment of advances according to the terms,
13 the state may in its sole discretion withhold from funds due to school
14 corporations or a charter school subject to IC 20-49-11-9(b) to which
15 advances are made amounts necessary to pay the advances and the
16 interest on the advances in accordance with their respective terms. The
17 terms of the advances shall be established by the state board after
18 consulting with the department and upon the approval of the budget
19 agency in advance of the time the respective advances are made.
20 However, in the case of school corporations with advances outstanding
21 on July 1, 1993, the withholding may be adjusted to conform with this
22 chapter.
23 (c) To the extent available, funds shall first be withheld from the
24 distribution of state tuition support. However, if this distribution is not
25 available or is inadequate, funds may be withheld from the distribution
26 of other state funds to the school corporation or a charter school
27 subject to IC 20-49-11-9(b) to which the advance is made.
28 (d) If an advance is made to a school corporation career and
29 technical education school described in IC 20-37-1-1, a part of the
30 advance and the payment obligation for that part of the advance shall
31 be determined by allocating the advance and payment amounts among
32 the members of the career and technical education school using the
33 number of students from each member school corporation that are
34 enrolled in the career and technical education school in the school year
35 the advance is made.
36 SECTION 39. IC 20-49-4-19, AS AMENDED BY P.L.40-2014,
37 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2023]: Sec. 19. (a) This section does not apply to a charter
39 school unless the state board suspends repayment of an advance
40 and interest on the advance from the public school options fund
41 established in IC 20-49-11-5 in accordance with IC 20-49-11-9(b).
42 (b) A Each school corporation or charter school subject to
2023 IN 1607—LS 7216/DI 116 40
1 IC 20-49-11-9(b) receiving an advance shall agree to have the money
2 advanced, together with the interest on the advance, deducted from the
3 distribution of state tuition support until all the money advanced,
4 together with the interest on the advance, has been paid. The state
5 board and the state board of finance shall reduce each distribution of
6 state tuition support to each school corporation or charter school
7 subject to IC 20-49-11-9(b) to which an advance is made in an amount
8 to be agreed upon by the state and the school corporation or charter
9 school subject to IC 20-49-11-9(b). If an advance is made to a school
10 corporation career and technical education school described in
11 IC 20-37-1-1, the reduction for a payment obligation for the advance
12 shall be allocated as provided in section 18 of this chapter.
13 SECTION 40. IC 20-49-4-23, AS AMENDED BY P.L.217-2017,
14 SECTION 139, IS AMENDED TO READ AS FOLLOWS
15 [EFFECTIVE JULY 1, 2023]: Sec. 23. (a) This section does not apply
16 to a charter school unless the state board suspends repayment of
17 an advance and interest on the advance from the public school
18 options fund established in IC 20-49-11-5 in accordance with
19 IC 20-49-11-9(b).
20 (b) Upon request of the treasurer of state, the state board of finance
21 may periodically sell, transfer, or liquidate agreements, in whole or in
22 part, including without limitation the sale, transfer, or liquidation of all
23 or any part of the principal or interest to be received at any time under
24 one (1) or more agreements that evidence the right of the state to make
25 deductions from state tuition support to pay advances under this
26 chapter under the terms and conditions that the state board of finance
27 considers necessary and appropriate.
28 (b) (c) Each sale, transfer, or liquidation under this section is subject
29 to the following conditions:
30 (1) Each sale, transfer, or liquidation may be made only to a
31 department, an agency, a commission, an instrumentality, or a
32 public body of the state, including the Indiana bond bank.
33 (2) Each sale, transfer, or liquidation of agreements may be made
34 only for cash.
35 (3) Payments under the sale, transfer, or liquidation must be made
36 to the treasurer of state for the fund and reported to the state board
37 of finance.
38 (4) The total amount of cash received by the fund from the sale
39 may not be less than the outstanding principal amount of all or a
40 part of the agreements sold plus accrued interest owed.
41 (5) If necessary to facilitate a sale, transfer, or liquidation, the
42 state board or the state board of finance may agree to act on
2023 IN 1607—LS 7216/DI 116 41
1 behalf of an entity described in subdivision (1) by collecting
2 payment on advances that are:
3 (A) received directly from a school corporation or charter
4 school subject to IC 20-49-11-9(b), if any direct payments are
5 received; or
6 (B) deducted from amounts appropriated and made available
7 for state tuition support.
8 An agreement by the state board or the state board of finance
9 under this subdivision is a valid and enforceable contractual
10 obligation but is not a debt of the state within the meaning of the
11 limitation against indebtedness under the Constitution of the State
12 of Indiana.
13 (6) Each proposed sale, transfer, or liquidation must be reviewed
14 by the budget committee and approved by the budget agency.
15 (c) (d) The state board of finance shall notify the state board and the
16 department of any action that the state board of finance takes under this
17 section.
18 SECTION 41. IC 20-49-11 IS ADDED TO THE INDIANA CODE
19 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2023]:
21 Chapter 11. Public School Options Program and Fund
22 Sec. 1. As used in the chapter, "authorizer" has the meaning set
23 forth in IC 20-24-1-2.5.
24 Sec. 2. (a) As used in this chapter, "charter school" refers to a
25 school established under IC 20-24.
26 (b) The term does not include the following:
27 (1) A virtual charter school (as defined in IC 20-24-1-10).
28 (2) An adult high school (as defined in IC 20-24-1-2.3).
29 Sec. 3. As used in this chapter, "fund" refers to the public school
30 options fund established by section 5 of this chapter.
31 Sec. 4. As used in this chapter, "organizer" has the meaning set
32 forth in IC 20-24-1-7.
33 Sec. 5. (a) The public school options fund is established for the
34 purposes of this chapter. Administrative expenses necessary to
35 carry out this chapter are also payable from the fund.
36 (b) The fund consists of:
37 (1) amounts distributed to the fund by the department of
38 revenue under IC 6-2.5-10-1(d)(4);
39 (2) appropriations to the fund from other sources;
40 (3) grants, gifts, and donations intended for deposit in the
41 fund; and
42 (4) interest that accrues from money in the fund.
2023 IN 1607—LS 7216/DI 116 42
1 (c) The fund shall be administered by the state board. The
2 treasurer of state shall invest the money in the fund not currently
3 needed to meet the obligations of the fund in the same manner as
4 public money is invested.
5 Sec. 6. (a) In order for a charter school to obtain an advance
6 from the common school fund under IC 20-49-4, a charter school's
7 organizer must submit an application to the charter school's
8 authorizer. The state board shall prescribe a standard application
9 and the authorizer may prescribe a supplemental application
10 requiring the organizer to include additional information not
11 included on the state board's standard application.
12 (b) The standard application described in subsection (a) must
13 require the organizer to:
14 (1) describe how the advance will be used in accordance to
15 IC 20-49-4-7; and
16 (2) provide information to demonstrate a need for the
17 advance.
18 (c) In addition to the requirements described in subsection (b),
19 the authorizer must require the organizer to develop and present
20 a plan for providing security for any outstanding balance of the
21 advance in the event that the charter school closes or to recoup any
22 gain from the sale of the applicable charter school property
23 resulting from the advance made under IC 20-49-4 if the applicable
24 property is sold:
25 (1) while the advance is being repaid; or
26 (2) within five (5) years after the advance is repaid;
27 in accordance with section 9 of this chapter.
28 Sec. 7. (a) Upon receipt of the application described in section
29 6 of this chapter, the authorizer shall review the application and
30 may require the organizer to provide supporting documentation
31 relating to the organizer's application. The authorizer shall
32 consider:
33 (1) the charter school's current and projected student
34 enrollment;
35 (2) the academic needs of students attending the charter
36 school;
37 (3) the facility needs of the charter school;
38 (4) the financial health of the charter school; and
39 (5) the organizer's ability to secure the loan in accordance
40 with section 6 of this chapter;
41 when reviewing the organizer's application.
42 (b) The authorizer may approve, deny, or require the organizer
2023 IN 1607—LS 7216/DI 116 43
1 to modify the organizer's application.
2 (c) The authorizer may require the organizer to provide security
3 for the advance made under IC 20-49-4.
4 (d) The authorizer may only approve an advance for terms of
5 the advance prescribed in:
6 (1) IC 20-49-4-12;
7 (2) IC 20-49-4-13;
8 (3) IC 20-49-4-14; and
9 (4) IC 20-49-4-15.
10 Sec. 8. (a) If the authorizer approves an organizer's application
11 under section 7 of this chapter, the authorizer shall send a copy of
12 the approved application to the state board within ten (10) business
13 days of the date the application is approved.
14 (b) Upon receipt of the copy of the approved application by the
15 state board, the state board shall approve the application and
16 provide the advance under IC 20-49-4 to the applicable charter
17 school.
18 Sec. 9. (a) The state board shall repay the money advanced by
19 the applicable charter school together with the interest on the
20 advance in accordance with IC 20-49-4 from the fund.
21 (b) The state board may suspend the repayment of an advance
22 or interest from the fund at the written request of the charter
23 school's authorizer. The authorizer may only request that an
24 advance be suspended under this subsection in instances where an
25 applicable charter school building is sold by the organizer. In the
26 event that the state board suspends repayment of an advance or
27 interest under this subsection, the charter school organizer is
28 responsible for completing the terms of repayment of the advance
29 in accordance with the terms approved by the state board in
30 consultation with the charter school's authorizer.
31 (c) When an advance together with interest on the advance has
32 been paid in full under this section, the state board shall send
33 notice to the charter school's authorizer and organizer indicating
34 the date that the advance together with interest on the advance has
35 been satisfied.
2023 IN 1607—LS 7216/DI 116