Indiana 2023 Regular Session

Indiana Senate Bill SB0199 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 199
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 20-25.7-5-2; IC 20-43.
7	7	Synopsis: Complexity index within the school funding formula.
8	8	Requires, for state fiscal years beginning after June 30, 2023, the state
9	9	board of education to determine each school corporation's complexity
10	10	index two times each year. Provides that the complexity index count
11	11	dates coincide with the average daily membership count days. Allows
12	12	a school corporation to request an adjustment to the school
13	13	corporation's complexity index. Provides a maximum amount of money
14	14	attributable to complexity index calculations that may be distributed for
15	15	all school corporations in a particular state fiscal year.
16	16	Effective: June 29, 2023; July 1, 2023.
17	17	Ford J.D.
18	18	January 10, 2023, read first time and referred to Committee on Education and Career
19	19	Development.
20	20	2023 IN 199—LS 6379/DI 125 Introduced
21	21	First Regular Session of the 123rd General Assembly (2023)
22	22	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
23	23	Constitution) is being amended, the text of the existing provision will appear in this style type,
24	24	additions will appear in this style type, and deletions will appear in this style type.
25	25	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
26	26	provision adopted), the text of the new provision will appear in this style type. Also, the
27	27	word NEW will appear in that style type in the introductory clause of each SECTION that adds
28	28	a new provision to the Indiana Code or the Indiana Constitution.
29	29	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
30	30	between statutes enacted by the 2022 Regular Session of the General Assembly.
31	31	SENATE BILL No. 199
32	32	A BILL FOR AN ACT to amend the Indiana Code concerning
33	33	education.
34	34	Be it enacted by the General Assembly of the State of Indiana:
35	35	1 SECTION 1. IC 20-25.7-5-2, AS AMENDED BY P.L.165-2021,
36	36	2 SECTION 153, IS AMENDED TO READ AS FOLLOWS
37	37	3 [EFFECTIVE JULY 1, 2023]: Sec. 2. (a) The board may enter into an
38	38	4 agreement with an organizer to reconstitute an eligible school as a
39	39	5 participating innovation network charter school or to establish a
40	40	6 participating innovation network charter school at a location selected
41	41	7 by the board within the boundary of the school corporation.
42	42	8 Notwithstanding IC 20-26-7.1, a participating innovation network
43	43	9 charter school may be established within a vacant school building.
44	44	10 (b) The terms of the agreement entered into between the board and
45	45	11 an organizer must specify the following:
46	46	12 (1) A statement that the organizer authorizes the department to
47	47	13 include the charter school's performance assessment results under
48	48	14 IC 20-31-8 when calculating the school corporation's performance
49	49	15 assessment under rules adopted by the state board.
50	50	16 (2) The amount of state funding, including tuition support (if the
51	51	17 participating innovation network charter school is treated in the
52	52	2023 IN 199—LS 6379/DI 125 2
53	53	1 same manner as a school operated by the school corporation
54	54	2 under subsection (d)(2)), and money levied as property taxes that
55	55	3 will be distributed by the school corporation to the organizer.
56	56	4 (3) The performance goals and accountability metrics agreed
57	57	5 upon for the charter school in the charter agreement between the
58	58	6 organizer and the authorizer.
59	59	7 (c) If an organizer and the board enter into an agreement under
60	60	8 subsection (a), the organizer and the board shall notify the department
61	61	9 that the agreement has been made under this section within thirty (30)
62	62	10 days after the agreement is entered into.
63	63	11 (d) Upon receipt of the notification under subsection (c), for school
64	64	12 years starting after the date of the agreement:
65	65	13 (1) the department shall include the participating innovation
66	66	14 network charter school's performance assessment results under
67	67	15 IC 20-31-8 when calculating the school corporation's performance
68	68	16 assessment under rules adopted by the state board;
69	69	17 (2) the department shall treat the participating innovation network
70	70	18 charter school in the same manner as a school operated by the
71	71	19 school corporation when calculating the total amount of state
72	72	20 funding to be distributed to the school corporation unless
73	73	21 subsection (e) applies; and
74	74	22 (3) if requested by a participating innovation network charter
75	75	23 school that reconstitutes an eligible school, the department may
76	76	24 use student growth as the state board's exclusive means to
77	77	25 determine the innovation network charter school's category or
78	78	26 designation of school improvement under 511 IAC 6.2-10-10 for
79	79	27 a period of three (3) years. Beginning with the 2019-2020 school
80	80	28 year, the department may not use student growth as the state
81	81	29 board's exclusive means to determine an innovation network
82	82	30 charter school's category or designation of school improvement.
83	83	31 This subdivision expires July 1, 2023.
84	84	32 (e) If a participating innovation network school was established
85	85	33 before January 1, 2016, and for the current school year has a
86	86	34 complexity index that is greater than the complexity index for the
87	87	35 school corporation that the innovation network school has contracted
88	88	36 with, the innovation network school shall be treated as a charter school
89	89	37 for purposes of determining tuition support. This subsection expires
90	90	38 June 30, 2023.
91	91	39 (f) This subsection applies for state fiscal years beginning after
92	92	40 June 30, 2023. If a determination of the complexity index of a
93	93	41 participating innovation network charter school that was
94	94	42 established before January 1, 2016, is, for either of the
95	95	2023 IN 199—LS 6379/DI 125 3
96	96	1 determinations made in the current school year, greater than the
97	97	2 determination of the complexity index for the school corporation
98	98	3 with which the innovation network charter school has contracted,
99	99	4 the innovation network school shall be treated as a charter school
100	100	5 for purposes of determining tuition support.
101	101	6 SECTION 2. IC 20-43-1-9, AS AMENDED BY P.L.213-2015,
102	102	7 SECTION 205, IS AMENDED TO READ AS FOLLOWS
103	103	8 [EFFECTIVE JULY 1, 2023]: Sec. 9. "Complexity index" refers to the
104	104	9 complexity index determined under IC 20-43-13-4. IC 20-43-13-5.
105	105	10 SECTION 3. IC 20-43-2-2, AS AMENDED BY P.L.108-2019,
106	106	11 SECTION 218, IS AMENDED TO READ AS FOLLOWS
107	107	12 [EFFECTIVE JULY 1, 2023]: Sec. 2. (a) Subject to subsection (f), the
108	108	13 maximum state distribution for a state fiscal year for all school
109	109	14 corporations for the purposes described in section 3 of this chapter is
110	110	15 the amount appropriated by the general assembly for those purposes for
111	111	16 that state fiscal year.
112	112	17 (b) If the budget director, after review by the budget committee,
113	113	18 makes a determination that the amount of the distribution for a state
114	114	19 fiscal year for all school corporations for the purposes described in
115	115	20 section 3 of this chapter exceeds the amount appropriated for these
116	116	21 purposes for the state fiscal year, the budget agency shall transfer
117	117	22 money from the state tuition reserve account to the state general fund
118	118	23 to cover the difference. However, the maximum amount that may be
119	119	24 transferred to the state general fund for the state fiscal year may not
120	120	25 exceed:
121	121	26 (1) seventy-five million dollars ($75,000,000) for the state fiscal
122	122	27 year beginning July 1, 2018; and
123	123	28 (2) twenty-five million dollars ($25,000,000) for a state fiscal year
124	124	29 beginning July 1, 2019, or thereafter.
125	125	30 (c) Any amounts transferred under this section shall be used to
126	126	31 augment the appropriation for state tuition support for the state fiscal
127	127	32 year and shall be distributed to school corporations to make or restore
128	128	33 the distributions for the purposes described in section 3 of this chapter.
129	129	34 (d) Transfers under this section are in addition to any transfers made
130	130	35 from the state tuition reserve account under IC 4-12-1-15.7 or any other
131	131	36 law.
132	132	37 (e) To the extent that the amount appropriated plus the amount
133	133	38 transferred is less than the amount that would be distributed under this
134	134	39 article, the total amount to be distributed for the purposes described in
135	135	40 section 3 of this chapter to each recipient during the remaining months
136	136	41 of the state fiscal year shall be proportionately reduced so that the total
137	137	42 reductions equal the amount of the excess for the purposes described
138	138	2023 IN 199—LS 6379/DI 125 4
139	139	1 in section 3 of this chapter.
140	140	2 (f) For state fiscal years beginning after June 30, 2023, of the
141	141	3 maximum state distribution described in subsection (a), the
142	142	4 maximum amount of money attributable to complexity index
143	143	5 calculations under:
144	144	6 (1) IC 20-43-6-3(b) STEP TWO; and
145	145	7 (2) IC 20-43-6-3(c) STEP FIVE;
146	146	8 that may be distributed for all school corporations in a particular
147	147	9 state fiscal year may not exceed seven hundred million one
148	148	10 hundred one thousand dollars ($700,101,000). To the extent that
149	149	11 the total amount calculated for a particular state fiscal year
150	150	12 exceeds the maximum amount provided in this subsection, the total
151	151	13 amount attributable to complexity index calculations that may be
152	152	14 distributed to each recipient during the remaining months of the
153	153	15 state fiscal year shall be proportionately reduced so that the total
154	154	16 payments attributable to complexity index calculations equal the
155	155	17 maximum amount provided under this subsection.
156	156	18 SECTION 4. IC 20-43-3-7, AS AMENDED BY P.L.130-2022,
157	157	19 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
158	158	20 JULY 1, 2023]: Sec. 7. (a) This section applies to distributions under
159	159	21 this article that are computed in any part based on a count of students
160	160	22 under IC 20-43-4-2.
161	161	23 (b) If the state board subsequently adjusts under IC 20-43-4-3.5 a
162	162	24 count, or, for a state fiscal year beginning after June 30, 2023, a
163	163	25 determination under IC 20-43-13-5, used for a distribution under this
164	164	26 article, the department shall adjust subsequent distributions to the
165	165	27 school corporation that are affected by the adjusted count or adjusted
166	166	28 determination, on the schedule determined by the department, to
167	167	29 reflect the differences between the distribution that the school
168	168	30 corporation received and the distribution that the school corporation
169	169	31 would have received if the adjusted count or adjusted determination
170	170	32 had been used.
171	171	33 SECTION 5. IC 20-43-4-9, AS AMENDED BY P.L.130-2022,
172	172	34 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
173	173	35 JULY 1, 2023]: Sec. 9. (a) Subject to subsections (b) and (c), this
174	174	36 subsection applies to the calculation of state tuition support
175	175	37 distributions that are based on the current ADM, and, for a state fiscal
176	176	38 year beginning after June 30, 2023, the complexity index, of a
177	177	39 school corporation. The fall count of ADM, as adjusted by the state
178	178	40 board under section 3.5 of this chapter, and, for a state fiscal year
179	179	41 beginning after June 30, 2023, the fall determination of the
180	180	42 complexity index, as adjusted under IC 20-43-13-5, shall be used to
181	181	2023 IN 199—LS 6379/DI 125 5
182	182	1 compute state tuition support distributions made in the first six (6)
183	183	2 months of the current state fiscal year. and The spring count of ADM,
184	184	3 as adjusted by the state board under section 3.5 of this chapter, and, for
185	185	4 a state fiscal year beginning after June 30, 2023, the spring
186	186	5 determination of the complexity index, as adjusted under
187	187	6 IC 20-43-13-5, shall be used to compute state tuition support
188	188	7 distributions made in the second six (6) months of the state fiscal year.
189	189	8 (b) This subsection applies to a school corporation that does not
190	190	9 provide the estimates required by section 2(c) of this chapter before the
191	191	10 deadline. For monthly state tuition support distributions made before
192	192	11 the count of ADM is finalized, the department shall determine the
193	193	12 distribution amount for such a school corporation for a state fiscal year
194	194	13 of the biennium, using data that were used by the general assembly in
195	195	14 determining the state tuition support appropriation for the budget act
196	196	15 for that state fiscal year. The department may adjust the data used
197	197	16 under this subsection for errors.
198	198	17 (c) If the state board adjusts a count of ADM, or, for a state fiscal
199	199	18 year beginning after June 30, 2023, adjusts a determination of the
200	200	19 complexity index for a school corporation, after a distribution is
201	201	20 made under this article, the adjusted count or adjusted complexity
202	202	21 index determination retroactively applies to the amount of state
203	203	22 tuition support distributed to a school corporation affected by the
204	204	23 adjusted count or adjusted complexity index determination. The
205	205	24 department shall settle any overpayment or underpayment of state
206	206	25 tuition support resulting from an adjusted count of ADM, or, for a
207	207	26 state fiscal year beginning after June 30, 2023, an adjusted
208	208	27 complexity index determination, on the schedule determined by the
209	209	28 department and approved by the budget agency.
210	210	29 SECTION 6. IC 20-43-13-4 IS REPEALED [EFFECTIVE JUNE 29,
211	211	30 2023]. Sec. 4. (a) Except as provided in subsections (c) and (d), the
212	212	31 complexity index is the percentage of the school corporation's students
213	213	32 who were receiving Supplemental Nutrition Assistance Program
214	214	33 (SNAP) benefits, Temporary Assistance for Needy Families (TANF)
215	215	34 benefits, or foster care services as of October 1 in the school year
216	216	35 ending in the later of:
217	217	36 (1) 2021; or
218	218	37 (2) the first year of operation of the school corporation.
219	219	38 (b) For a conversion charter school, the percentage determined
220	220	39 under this section is the percentage of the sponsor school corporation.
221	221	40 (c) Except as provided in subsection (d), the complexity index for
222	222	41 a school corporation that has entered into an agreement with one (1) or
223	223	42 more charter schools to participate as an innovation network charter
224	224	2023 IN 199—LS 6379/DI 125 6
225	225	1 school under IC 20-25.7-5 for a state fiscal year is equal to the result
226	226	2 using the following formula:
227	227	3 STEP ONE: Determine:
228	228	4 (A) the school corporation's enrollment; minus
229	229	5 (B) the enrollment of each participating innovation network
230	230	6 charter school.
231	231	7 STEP TWO: Determine the number of students in the school
232	232	8 corporation who were receiving Supplemental Nutrition
233	233	9 Assistance Program (SNAP) benefits, Temporary Assistance for
234	234	10 Needy Families (TANF) benefits, or foster care services as of
235	235	11 October 1 in the school year ending in 2021, not including
236	236	12 students enrolled in each participating innovation network charter
237	237	13 school.
238	238	14 STEP THREE: Divide the result of STEP TWO by the result of
239	239	15 STEP ONE.
240	240	16 STEP FOUR: Determine the enrollment of each participating
241	241	17 innovation network charter school.
242	242	18 STEP FIVE: Determine the number of students in each
243	243	19 participating innovation network charter school who were
244	244	20 receiving Supplemental Nutrition Assistance Program (SNAP)
245	245	21 benefits, Temporary Assistance for Needy Families (TANF)
246	246	22 benefits, or foster care services as of October 1 in the school year
247	247	23 ending in the later of:
248	248	24 (A) 2021; or
249	249	25 (B) the first year of operation of the participating innovation
250	250	26 network charter school.
251	251	27 STEP SIX: Divide the result of STEP FIVE by the result of STEP
252	252	28 FOUR.
253	253	29 STEP SEVEN: For each participating innovation network charter
254	254	30 school, determine the greater of:
255	255	31 (A) the result of STEP THREE; or
256	256	32 (B) the result of STEP SIX.
257	257	33 STEP EIGHT: For each participating innovation network charter
258	258	34 school, multiply the result of STEP SEVEN by the result of STEP
259	259	35 FOUR.
260	260	36 STEP NINE: Determine the sum of:
261	261	37 (A) the result of STEP TWO; plus
262	262	38 (B) the results of STEP EIGHT, for each participating
263	263	39 innovation network charter school.
264	264	40 STEP TEN: Determine the sum of:
265	265	41 (A) the result of STEP ONE; plus
266	266	42 (B) the results of STEP FOUR for each participating
267	267	2023 IN 199—LS 6379/DI 125 7
268	268	1 innovation network charter school.
269	269	2 STEP ELEVEN: Divide the STEP NINE result by the STEP TEN
270	270	3 result.
271	271	4 (d) If the complexity index of a participating innovation network
272	272	5 charter school that was established before January 1, 2016, is, for the
273	273	6 current school year, greater than the complexity index for the school
274	274	7 corporation with which the innovation network charter school has
275	275	8 contracted, the complexity index of the participating innovation
276	276	9 network charter school is determined as described in IC 20-25.7-5-2(e).
277	277	10 SECTION 7. IC 20-43-13-5 IS ADDED TO THE INDIANA CODE
278	278	11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
279	279	12 1, 2023]: Sec. 5. (a) Except as provided in subsections (e) and (f),
280	280	13 and subject to subsection (b), the state board shall determine the
281	281	14 number of students in each school corporation receiving
282	282	15 Supplemental Nutrition Assistance Program (SNAP) benefits,
283	283	16 Temporary Assistance for Needy Families (TANF) benefits, or
284	284	17 foster care services two (2) times each school year, with one (1)
285	285	18 determination date occurring in each of the following periods:
286	286	19 (1) The date of the fall count of ADM determined under
287	287	20 IC 20-43-4-3(1).
288	288	21 (2) The date of the spring count of ADM determined under
289	289	22 IC 20-43-4-3(2).
290	290	23 (b) However, if extreme patterns of:
291	291	24 (1) student in-migration;
292	292	25 (2) illness;
293	293	26 (3) natural disaster; or
294	294	27 (4) other unusual conditions in a particular school
295	295	28 corporation's enrollment;
296	296	29 on either a day described in subsection (a)(1) or (a)(2), or the
297	297	30 subsequent adjustment date cause the determination under
298	298	31 subsection (a) to be unrepresentative of the number of students in
299	299	32 each school corporation receiving Supplemental Nutrition
300	300	33 Assistance Program (SNAP) benefits, Temporary Assistance for
301	301	34 Needy Families (TANF) benefits, or foster care services, the state
302	302	35 board may designate another day for making the determination
303	303	36 under this section.
304	304	37 (c) For purposes of determining basic tuition support for a
305	305	38 school corporation under IC 20-43-6-3, the complexity index is the
306	306	39 percentage of each school corporation's students receiving
307	307	40 Supplemental Nutrition Assistance Program (SNAP) benefits,
308	308	41 Temporary Assistance for Needy Families (TANF) benefits, or
309	309	42 foster care services on the applicable determination date described
310	310	2023 IN 199—LS 6379/DI 125 8
311	311	1 in subsection (a).
312	312	2 (d) After an initial determination is completed under this
313	313	3 section, a school corporation may submit any information
314	314	4 necessary to the department with a request that the department
315	315	5 make an adjusted determination of students receiving
316	316	6 Supplemental Nutrition Assistance Program (SNAP) benefits,
317	317	7 Temporary Assistance for Needy Families (TANF) benefits, or
318	318	8 foster care services, if the school corporation has reason to believe
319	319	9 that the determination is unrepresentative of the number of the
320	320	10 school corporation's students receiving the services. After verifying
321	321	11 the accuracy of submitted information, the department may adjust
322	322	12 the school corporation's determination of students receiving
323	323	13 Supplemental Nutrition Assistance Program (SNAP) benefits,
324	324	14 Temporary Assistance for Needy Families (TANF) benefits, or
325	325	15 foster care services.
326	326	16 (e) For a conversion charter school, the percentage determined
327	327	17 under this section is the percentage of the sponsor school
328	328	18 corporation.
329	329	19 (f) Except as provided in subsection (g), the complexity index for
330	330	20 a school corporation that has entered into an agreement with one
331	331	21 (1) or more charter schools to participate as an innovation network
332	332	22 charter school under IC 20-25.7-5 for a state fiscal year is equal to
333	333	23 the result using the following formula:
334	334	24 STEP ONE: Determine:
335	335	25 (A) the school corporation's enrollment; minus
336	336	26 (B) the enrollment of each participating innovation
337	337	27 network charter school.
338	338	28 STEP TWO: Determine the number of students in the school
339	339	29 corporation who were receiving Supplemental Nutrition
340	340	30 Assistance Program (SNAP) benefits, Temporary Assistance
341	341	31 for Needy Families (TANF) benefits, or foster care services as
342	342	32 of the applicable date described in subsection (a), not
343	343	33 including students enrolled in each participating innovation
344	344	34 network charter school.
345	345	35 STEP THREE: Divide the result of STEP TWO by the result
346	346	36 of STEP ONE.
347	347	37 STEP FOUR: Determine the enrollment of each participating
348	348	38 innovation network charter school.
349	349	39 STEP FIVE: Determine the number of students in each
350	350	40 participating innovation network charter school who were
351	351	41 receiving Supplemental Nutrition Assistance Program (SNAP)
352	352	42 benefits, Temporary Assistance for Needy Families (TANF)
353	353	2023 IN 199—LS 6379/DI 125 9
354	354	1 benefits, or foster care services on the later of:
355	355	2 (A) the most recent determination described in subsection
356	356	3 (a); or
357	357	4 (B) the first year of operation of the participating
358	358	5 innovation network charter school.
359	359	6 STEP SIX: Divide the result of STEP FIVE by the result of
360	360	7 STEP FOUR.
361	361	8 STEP SEVEN: For each participating innovation network
362	362	9 charter school, determine the greater of:
363	363	10 (A) the result of STEP THREE; or
364	364	11 (B) the result of STEP SIX.
365	365	12 STEP EIGHT: For each participating innovation network
366	366	13 charter school, multiply the result of STEP SEVEN by the
367	367	14 result of STEP FOUR.
368	368	15 STEP NINE: Determine the sum of:
369	369	16 (A) the result of STEP TWO; plus
370	370	17 (B) the results of STEP EIGHT, for each participating
371	371	18 innovation network charter school.
372	372	19 STEP TEN: Determine the sum of:
373	373	20 (A) the result of STEP ONE; plus
374	374	21 (B) the results of STEP FOUR for each participating
375	375	22 innovation network charter school.
376	376	23 STEP ELEVEN: Divide the STEP NINE result by the STEP
377	377	24 TEN result.
378	378	25 (g) If a determination of the complexity index of a participating
379	379	26 innovation network charter school that was established before
380	380	27 January 1, 2016, is, for either of the determinations made in the
381	381	28 current school year, greater than the determination of the
382	382	29 complexity index for the school corporation with which the
383	383	30 innovation network charter school has contracted, the complexity
384	384	31 index of the participating innovation network charter school is
385	385	32 determined as described in IC 20-25.7-5-2(f).
386	386	33 SECTION 8. An emergency is declared for this act.
387	387	2023 IN 199—LS 6379/DI 125