IN
Indiana Senate Bill SB0327

Indiana 2023 Regular Session

Indiana Senate Bill SB0327 Compare Versions

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1+*ES0327.2*
2+Reprinted
3+April 14, 2023
4+ENGROSSED
5+SENATE BILL No. 327
6+_____
7+DIGEST OF SB 327 (Updated April 13, 2023 5:54 pm - DI 143)
8+Citations Affected: IC 4-6; IC 5-9; IC 5-13; IC 6-1.1; IC 20-19;
9+IC 20-23; IC 20-40; IC 34-30; IC 36-12; noncode.
10+Synopsis: Gary Community Schools. Establishes procedures to
11+appoint members to the governing body of the Gary Community School
12+Corporation. Establishes procedures for transferring responsibility of
13+financial and academic matters from the emergency manager to the
14+(Continued next page)
15+Effective: Upon passage; July 1, 2023.
16+Mishler, Charbonneau,
17+Randolph Lonnie M
18+(HOUSE SPONSORS — THOMPSON, HARRIS, HATCHER)
19+January 12, 2023, read first time and referred to Committee on Appropriations.
20+February 9, 2023, amended, reported favorably — Do Pass.
21+February 13, 2023, read second time, ordered engrossed. Engrossed.
22+February 14, 2023, read third time, passed. Yeas 40, nays 9.
23+HOUSE ACTION
24+February 28, 2023, read first time and referred to Committee on Ways and Means.
25+April 11, 2023, amended, reported — Do Pass.
26+April 13, 2023, read second time, amended, ordered engrossed.
27+ES 327—LS 7331/DI 120 Digest Continued
28+governing body. Removes obsolete provisions and makes conforming
29+amendments. Provides that not later than October 31, 2025, and each
30+October 31 thereafter, the governing body must submit a report to the
31+distressed unit appeal board (DUAB) summarizing the financial
32+position and operations of the school corporation for the previous state
33+fiscal year. Requires: (1) the governing body to submit a report
34+concerning specified topics to the DUAB and the budget committee
35+before July 1, 2026; and (2) the DUAB to present that report to the
36+budget committee before November 1, 2026. Repeals provisions
37+relating to the election of advisory board members for the Gary
38+Community School Corporation. Provides that the DUAB may employ
39+staff (instead of an executive director). Repeals provisions requiring the
40+DUAB to pay the Muncie Community School's emergency manager's
41+compensation and to reimburse the Muncie Community School's
42+emergency manager for actual and necessary expenses. Repeals the
43+fiscal and qualitative indicators committee (committee). Replaces
44+references to the committee with references to the DUAB.
45+ES 327—LS 7331/DI 120ES 327—LS 7331/DI 120 Reprinted
46+April 14, 2023
147 First Regular Session of the 123rd General Assembly (2023)
248 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
349 Constitution) is being amended, the text of the existing provision will appear in this style type,
450 additions will appear in this style type, and deletions will appear in this style type.
551 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
652 provision adopted), the text of the new provision will appear in this style type. Also, the
753 word NEW will appear in that style type in the introductory clause of each SECTION that adds
854 a new provision to the Indiana Code or the Indiana Constitution.
955 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1056 between statutes enacted by the 2022 Regular Session of the General Assembly.
11-SENATE ENROLLED ACT No. 327
12-AN ACT to amend the Indiana Code concerning education.
57+ENGROSSED
58+SENATE BILL No. 327
59+A BILL FOR AN ACT to amend the Indiana Code concerning
60+education.
1361 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 4-6-2-1.5, AS AMENDED BY P.L.163-2020,
15-SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16-JULY 1, 2023]: Sec. 1.5. (a) Whenever any state governmental official
17-or employee, whether elected or appointed, is made a party to a suit,
18-and the attorney general determines that said suit has arisen out of an
19-act which such official or employee in good faith believed to be within
20-the scope of the official's or employee's duties as prescribed by statute
21-or duly adopted regulation, the attorney general shall defend such
22-person throughout such action.
23-(b) Whenever a teacher (as defined in IC 20-18-2-22) is made a
24-party to a civil suit, and the attorney general determines that the suit
25-has arisen out of an act that the teacher in good faith believed was
26-within the scope of the teacher's duties in enforcing discipline policies
27-developed under IC 20-33-8-12, the attorney general shall defend the
28-teacher throughout the action.
29-(c) Not later than July 30 of each year, the attorney general, in
30-consultation with the Indiana education employment relations board
31-established in IC 20-29-3-1, shall draft and disseminate a letter by first
32-class mail to the residence of teachers providing a summary of the
33-teacher's rights and protections under state and federal law, including
34-a teacher's rights and protections relating to the teacher's performance
35-evaluation under IC 20-28-11.5.
36-(d) The department of education, in consultation with the Indiana
37-SEA 327 — Concur 2
38-education employment relations board, shall develop a method to
39-provide the attorney general with the names and addresses of active
40-teachers in Indiana in order for the attorney general to disseminate the
41-letter described in subsection (c). Names and addresses collected and
42-provided to the attorney general under this subsection are confidential
43-and excepted from public disclosure as provided in IC 5-14-3-4.
44-(e) Whenever a school corporation (as defined in IC 20-26-2-4) is
45-made a party to a civil suit and the attorney general determines that the
46-suit has arisen out of an act authorized under IC 20-30-5-0.5 or
47-IC 20-30-5-4.5, the attorney general shall defend the school corporation
48-throughout the action.
49-(f) Whenever a member of the fiscal management board appointed
50-under IC 6-1.1-20.3-6.8 is made a party to a civil suit and the attorney
51-general determines that the suit has arisen out of an act by the fiscal
52-management board member that is authorized or required under
53-IC 6-1.1-20.3 or any other law, the attorney general shall defend the
54-fiscal management board member throughout the action.
55-(g) (f) As used in this subsection, "bridge authority" refers to the
56-New Harmony and Wabash River bridge authority established by
57-IC 8-16-15.5-2. Whenever:
58-(1) the bridge authority;
59-(2) a member of the bridge authority;
60-(3) an officer of the bridge authority; or
61-(4) an employee of the bridge authority;
62-is made a party to a civil suit and the attorney general determines that
63-the suit has arisen out of an act or omission of any person described in
64-subdivision (1), (2), (3), or (4), that is authorized or required under
65-IC 8-16-15.5 or any other law, the attorney general shall defend that
66-person throughout the action.
67-(h) (g) A determination by the attorney general under subsection (a),
68-(b), (e), or (f) or (g) shall not be admitted as evidence in the trial of any
69-such civil action for damages.
70-(i) (h) Nothing in this chapter shall be construed to deprive any such
71-person of the person's right to select counsel of the person's own choice
72-at the person's own expense.
73-SECTION 2. IC 5-9-4-7, AS AMENDED BY P.L.2-2014,
74-SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
75-JULY 1, 2023]: Sec. 7. (a) Except as provided in subsection (b) or (c),
76-an officeholder who elects to take the leave of absence described in
77-section 6 of this chapter shall give written notice that the officeholder
78-is taking a leave of absence for military service to the person or entity
79-designated in IC 5-8-3.5-1 to receive a resignation for the office the
80-SEA 327 — Concur 3
81-officeholder holds.
82-(b) An officeholder who is:
83-(1) a justice of the supreme court, a judge of the court of appeals,
84-or a judge of the tax court; or
85-(2) a judge of a circuit, city, probate, or superior court;
86-shall give the written notice required by subsection (a) to the clerk of
87-the supreme court.
88-(c) An officeholder who holds a school board office shall give the
89-written notice required by subsection (a) to the person or entity
90-designated in IC 20-25-3, IC 20-25-4, IC 20-25-5, IC 20-23-12,
91-IC 20-23-12.1, IC 20-23-14, IC 20-23-15, IC 20-23-4, or IC 20-26 to
92-receive a resignation for the office the officeholder holds.
93-(d) The written notice required by subsection (a) must state that the
94-officeholder is taking a leave of absence because the officeholder:
95-(1) has been called for active duty in:
96-(A) the armed forces of the United States; or
97-(B) the national guard; and
98-(2) will be temporarily unable to perform the duties of the
99-officeholder's office.
100-SECTION 3. IC 5-9-4-8, AS AMENDED BY P.L.74-2017,
101-SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
102-JULY 1, 2023]: Sec. 8. (a) Except as provided in subsection (b) and
103-IC 36-5-6-9, during the officeholder's leave of absence, the
104-officeholder's office must be filled by a temporary appointment made
105-under:
106-(1) IC 3-13-4;
107-(2) IC 3-13-5;
108-(3) IC 3-13-6;
109-(4) IC 3-13-7;
110-(5) IC 3-13-8;
111-(6) IC 3-13-9;
112-(7) IC 3-13-10;
113-(8) IC 3-13-11;
114-(9) IC 20-23-4;
115-(10) IC 20-26;
116-(11) IC 20-23-12; IC 20-23-12.1;
117-(12) IC 20-23-14;
118-(13) IC 20-23-15;
119-(14) IC 20-23-17;
120-(15) IC 20-23-17.2;
121-(16) IC 20-25-3;
122-(17) IC 20-25-4; or
123-SEA 327 — Concur 4
124-(18) IC 20-25-5;
125-in the same manner as a vacancy created by a resignation is filled. A
126-temporary appointment may be made in accordance with the applicable
127-statute after the written notice required under section 7 of this chapter
128-has been filed.
129-(b) For an officeholder who:
130-(1) is:
131-(A) a justice of the supreme court, a judge of the court of
132-appeals, or a judge of the tax court; or
133-(B) a judge of a circuit, city, probate, or superior court; and
134-(2) is taking a leave of absence under this chapter;
135-the supreme court shall appoint a judge pro tempore to fill the
136-officeholder's office in accordance with the court's rules and
137-procedures.
138-(c) The person selected or appointed under subsection (a) or (b)
139-serves until the earlier of:
140-(1) the date the officeholder's leave of absence ends as provided
141-in section 10 of this chapter; or
142-(2) the officeholder's term of office expires.
143-(d) The person selected or appointed to an office under subsection
144-(a) or (b):
145-(1) assumes all the rights and duties of; and
146-(2) is entitled to the compensation established for;
147-the office for the period of the temporary appointment.
148-SECTION 4. IC 5-13-7-8, AS ADDED BY P.L.101-2019,
62+1 SECTION 1. IC 4-6-2-1.5, AS AMENDED BY P.L.163-2020,
63+2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
64+3 JULY 1, 2023]: Sec. 1.5. (a) Whenever any state governmental official
65+4 or employee, whether elected or appointed, is made a party to a suit,
66+5 and the attorney general determines that said suit has arisen out of an
67+6 act which such official or employee in good faith believed to be within
68+7 the scope of the official's or employee's duties as prescribed by statute
69+8 or duly adopted regulation, the attorney general shall defend such
70+9 person throughout such action.
71+10 (b) Whenever a teacher (as defined in IC 20-18-2-22) is made a
72+11 party to a civil suit, and the attorney general determines that the suit
73+12 has arisen out of an act that the teacher in good faith believed was
74+13 within the scope of the teacher's duties in enforcing discipline policies
75+14 developed under IC 20-33-8-12, the attorney general shall defend the
76+15 teacher throughout the action.
77+16 (c) Not later than July 30 of each year, the attorney general, in
78+17 consultation with the Indiana education employment relations board
79+ES 327—LS 7331/DI 120 2
80+1 established in IC 20-29-3-1, shall draft and disseminate a letter by first
81+2 class mail to the residence of teachers providing a summary of the
82+3 teacher's rights and protections under state and federal law, including
83+4 a teacher's rights and protections relating to the teacher's performance
84+5 evaluation under IC 20-28-11.5.
85+6 (d) The department of education, in consultation with the Indiana
86+7 education employment relations board, shall develop a method to
87+8 provide the attorney general with the names and addresses of active
88+9 teachers in Indiana in order for the attorney general to disseminate the
89+10 letter described in subsection (c). Names and addresses collected and
90+11 provided to the attorney general under this subsection are confidential
91+12 and excepted from public disclosure as provided in IC 5-14-3-4.
92+13 (e) Whenever a school corporation (as defined in IC 20-26-2-4) is
93+14 made a party to a civil suit and the attorney general determines that the
94+15 suit has arisen out of an act authorized under IC 20-30-5-0.5 or
95+16 IC 20-30-5-4.5, the attorney general shall defend the school corporation
96+17 throughout the action.
97+18 (f) Whenever a member of the fiscal management board appointed
98+19 under IC 6-1.1-20.3-6.8 is made a party to a civil suit and the attorney
99+20 general determines that the suit has arisen out of an act by the fiscal
100+21 management board member that is authorized or required under
101+22 IC 6-1.1-20.3 or any other law, the attorney general shall defend the
102+23 fiscal management board member throughout the action.
103+24 (g) (f) As used in this subsection, "bridge authority" refers to the
104+25 New Harmony and Wabash River bridge authority established by
105+26 IC 8-16-15.5-2. Whenever:
106+27 (1) the bridge authority;
107+28 (2) a member of the bridge authority;
108+29 (3) an officer of the bridge authority; or
109+30 (4) an employee of the bridge authority;
110+31 is made a party to a civil suit and the attorney general determines that
111+32 the suit has arisen out of an act or omission of any person described in
112+33 subdivision (1), (2), (3), or (4), that is authorized or required under
113+34 IC 8-16-15.5 or any other law, the attorney general shall defend that
114+35 person throughout the action.
115+36 (h) (g) A determination by the attorney general under subsection (a),
116+37 (b), (e), or (f) or (g) shall not be admitted as evidence in the trial of any
117+38 such civil action for damages.
118+39 (i) (h) Nothing in this chapter shall be construed to deprive any such
119+40 person of the person's right to select counsel of the person's own choice
120+41 at the person's own expense.
121+42 SECTION 2. IC 5-9-4-7, AS AMENDED BY P.L.2-2014,
122+ES 327—LS 7331/DI 120 3
123+1 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
124+2 JULY 1, 2023]: Sec. 7. (a) Except as provided in subsection (b) or (c),
125+3 an officeholder who elects to take the leave of absence described in
126+4 section 6 of this chapter shall give written notice that the officeholder
127+5 is taking a leave of absence for military service to the person or entity
128+6 designated in IC 5-8-3.5-1 to receive a resignation for the office the
129+7 officeholder holds.
130+8 (b) An officeholder who is:
131+9 (1) a justice of the supreme court, a judge of the court of appeals,
132+10 or a judge of the tax court; or
133+11 (2) a judge of a circuit, city, probate, or superior court;
134+12 shall give the written notice required by subsection (a) to the clerk of
135+13 the supreme court.
136+14 (c) An officeholder who holds a school board office shall give the
137+15 written notice required by subsection (a) to the person or entity
138+16 designated in IC 20-25-3, IC 20-25-4, IC 20-25-5, IC 20-23-12,
139+17 IC 20-23-12.1, IC 20-23-14, IC 20-23-15, IC 20-23-4, or IC 20-26 to
140+18 receive a resignation for the office the officeholder holds.
141+19 (d) The written notice required by subsection (a) must state that the
142+20 officeholder is taking a leave of absence because the officeholder:
143+21 (1) has been called for active duty in:
144+22 (A) the armed forces of the United States; or
145+23 (B) the national guard; and
146+24 (2) will be temporarily unable to perform the duties of the
147+25 officeholder's office.
148+26 SECTION 3. IC 5-9-4-8, AS AMENDED BY P.L.74-2017,
149+27 SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
150+28 JULY 1, 2023]: Sec. 8. (a) Except as provided in subsection (b) and
151+29 IC 36-5-6-9, during the officeholder's leave of absence, the
152+30 officeholder's office must be filled by a temporary appointment made
153+31 under:
154+32 (1) IC 3-13-4;
155+33 (2) IC 3-13-5;
156+34 (3) IC 3-13-6;
157+35 (4) IC 3-13-7;
158+36 (5) IC 3-13-8;
159+37 (6) IC 3-13-9;
160+38 (7) IC 3-13-10;
161+39 (8) IC 3-13-11;
162+40 (9) IC 20-23-4;
163+41 (10) IC 20-26;
164+42 (11) IC 20-23-12; IC 20-23-12.1;
165+ES 327—LS 7331/DI 120 4
166+1 (12) IC 20-23-14;
167+2 (13) IC 20-23-15;
168+3 (14) IC 20-23-17;
169+4 (15) IC 20-23-17.2;
170+5 (16) IC 20-25-3;
171+6 (17) IC 20-25-4; or
172+7 (18) IC 20-25-5;
173+8 in the same manner as a vacancy created by a resignation is filled. A
174+9 temporary appointment may be made in accordance with the applicable
175+10 statute after the written notice required under section 7 of this chapter
176+11 has been filed.
177+12 (b) For an officeholder who:
178+13 (1) is:
179+14 (A) a justice of the supreme court, a judge of the court of
180+15 appeals, or a judge of the tax court; or
181+16 (B) a judge of a circuit, city, probate, or superior court; and
182+17 (2) is taking a leave of absence under this chapter;
183+18 the supreme court shall appoint a judge pro tempore to fill the
184+19 officeholder's office in accordance with the court's rules and
185+20 procedures.
186+21 (c) The person selected or appointed under subsection (a) or (b)
187+22 serves until the earlier of:
188+23 (1) the date the officeholder's leave of absence ends as provided
189+24 in section 10 of this chapter; or
190+25 (2) the officeholder's term of office expires.
191+26 (d) The person selected or appointed to an office under subsection
192+27 (a) or (b):
193+28 (1) assumes all the rights and duties of; and
194+29 (2) is entitled to the compensation established for;
195+30 the office for the period of the temporary appointment.
196+31 SECTION 4. IC 5-13-7-8, AS ADDED BY P.L.101-2019,
197+32 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
198+33 UPON PASSAGE]: Sec. 8. (a) During the annual meeting required by
199+34 section 6 of this chapter, the superintendent of a school corporation
200+35 shall submit a written report to the local board of finance for the school
201+36 corporation. The report must assess the financial condition of the
202+37 school corporation using the fiscal and qualitative indicators
203+38 determined under IC 20-19-7-4 by the fiscal and qualitative indicators
204+39 committee. distressed unit appeal board established by
205+40 IC 6-1.1-20.3-4.
206+41 (b) The local board of finance shall review the report made under
207+42 subsection (a).
208+ES 327—LS 7331/DI 120 5
209+1 (c) The superintendent of a school corporation may delegate the
210+2 duty to submit a report under subsection (a) to an employee or
211+3 representative of the school corporation.
212+4 SECTION 5. IC 6-1.1-20.3-5, AS AMENDED BY
213+5 P.L.213-2018(ss), SECTION 4, IS AMENDED TO READ AS
214+6 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5. (a) The board may
215+7 employ an executive director staff who shall serve at the pleasure of
216+8 the board and carry out the administrative responsibilities assigned by
217+9 the board. The board may delegate a specific duty, authority, or
218+10 responsibility assigned to the board under this chapter to the executive
219+11 director. staff.
220+12 (b) The department of local government finance shall provide the
221+13 board with the staff and assistance that the board reasonably requires.
222+14 (c) The department of local government finance shall may provide
223+15 from the department's budget funding to support the board's duties
224+16 under this chapter.
225+17 (d) The board may contract with accountants, financial experts, and
226+18 other advisors and consultants as necessary to carry out the board's
227+19 duties under this chapter.
228+20 (e) The board may adopt rules to implement the board's duties,
229+21 authorities, or responsibilities, including those in this chapter and those
230+22 in IC 20-19-7.
231+23 SECTION 6. IC 6-1.1-20.3-6.8, AS AMENDED BY P.L.43-2021,
232+24 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
233+25 JULY 1, 2023]: Sec. 6.8. (a) This section applies only to the Gary
234+26 Community School Corporation.
235+27 (b) The general assembly finds that the provisions of this section:
236+28 (1) are necessary to address the unique issues faced by the Gary
237+29 Community School Corporation; and
238+30 (2) are not precedent for and may not be appropriate for
239+31 addressing issues faced by other school corporations.
240+32 (c) As used in this section, the following definitions apply:
241+33 (1) "Chief academic officer" means the chief academic officer
242+34 appointed under subsection (j). (h).
243+35 (2) "Chief financial officer" means the chief financial officer
244+36 appointed under subsection (i). (g).
245+37 (3) "School corporation" refers to the Gary Community School
246+38 Corporation.
247+39 (d) The Gary Community School Corporation is designated as a
248+40 distressed political subdivision for purposes of this chapter until the
249+41 school corporation's designation as a distressed political subdivision is
250+42 terminated as provided in section 13(b) of this chapter. This
251+ES 327—LS 7331/DI 120 6
252+1 designation as a distressed political subdivision is effective regardless
253+2 of whether the school corporation has submitted a petition requesting
254+3 to be designated as a distressed political subdivision. Until the school
255+4 corporation's designation as a distressed political subdivision is
256+5 terminated as provided in section 13(b) of this chapter, the Gary
257+6 Community School Corporation advisory board may not hold a public
258+7 meeting more often than once every three (3) months. This limit on the
259+8 number of meetings of the advisory board does not apply to the
260+9 emergency manager. The emergency manager shall hold a monthly
261+10 forum to provide an update on the Gary Community School
262+11 Corporation within the school district that is open to the general public.
263+12 During the period that the Gary Community School Corporation is
264+13 designated as a distressed political subdivision, the advisory board may
265+14 vote to:
266+15 (1) fill vacancies;
267+16 (2) select officers; or
268+17 (3) make appointments;
269+18 of the advisory board, and to present awards, recognition, and
270+19 certificates to employees or supporters of the school corporation.
271+20 (e) Until the school corporation's designation as a distressed
272+21 political subdivision is terminated as provided in section 13(b) of this
273+22 chapter, the following apply to the emergency manager appointed
274+23 under section 7.5 of this chapter for the school corporation:
275+24 (1) The emergency manager has the powers and duties specified
276+25 in this chapter.
277+26 (2) The emergency manager shall consider recommendations
278+27 from the fiscal management board and the advisory board, but the
279+28 emergency manager has full responsibility and authority related
280+29 to financial and academic matters of the school corporation, and
281+30 the emergency manager may act, as specified in this chapter, on
282+31 these financial and academic matters without the approval of the
283+32 fiscal management board or the advisory board.
284+33 (3) (2) Notwithstanding section 7.5(d) of this chapter, the
285+34 distressed unit appeal board shall:
286+35 (A) determine the compensation of the emergency manager;
287+36 chief financial officer, and chief academic officer; and
288+37 (B) subject to subsections (i) (g) and (j), (h), pay the
289+38 emergency manager's chief financial officer's, and chief
290+39 academic officer's compensation and reimburse the emergency
291+40 manager chief financial officer, and chief academic officer for
292+41 actual and necessary expenses from funds appropriated to the
293+42 distressed unit appeal board.
294+ES 327—LS 7331/DI 120 7
295+1 (4) (3) Before appointing the emergency manager, the distressed
296+2 unit appeal board shall interview at least one (1) resident of the
297+3 city of Gary as a candidate for the position. If the distressed unit
298+4 appeal board is not able to interview a resident of the city of Gary
299+5 as a candidate for the position, the distressed unit appeal board
300+6 shall interview at least one (1) individual who is a resident of
301+7 Lake County or northwest Indiana as a candidate for the position.
302+8 The appointment of the emergency manager for the school corporation
303+9 is terminated on the date the school corporation's designation as a
304+10 distressed political subdivision is terminated as provided in section
305+11 13(b) of this chapter.
306+12 (f) In addition to any other actions that the distressed unit appeal
307+13 board may take under this chapter concerning a distressed political
308+14 subdivision, for a distressed school corporation, the distressed unit
309+15 appeal board may also do any of the following:
310+16 (1) The distressed unit appeal board may delay or suspend, for a
311+17 period determined by the board, any payments of principal or
312+18 interest, or both, that would otherwise be due from the school
313+19 corporation on loans or advances from the common school fund.
314+20 (2) The distressed unit appeal board may recommend to the state
315+21 board of finance that the state board of finance make an interest
316+22 free loan to the school corporation from the common school fund.
317+23 The distressed unit appeal board shall determine the payment
318+24 schedule and the commencement date for the loan. If the
319+25 distressed unit appeal board makes a recommendation that such
320+26 a loan be made, the state board of finance may, notwithstanding
321+27 IC 20-49, make such a loan for a term of not more than ten (10)
322+28 years.
323+29 (3) The distressed unit appeal board may establish benchmarks of
324+30 financial improvement for the school corporation.
325+31 (4) The distressed unit appeal board may provide a grant or grants
326+32 to the school corporation from funds appropriated to the
327+33 distressed unit appeal board, in amounts determined by the
328+34 distressed unit appeal board, to assist the school corporation in
329+35 overcoming short term financial problems.
330+36 (5) The distressed unit appeal board may make a recommendation
331+37 to the general assembly concerning the possible restructuring of
332+38 advances made to the school corporation from the common school
333+39 fund, including forgiveness of principal and interest on those
334+40 advances.
335+41 (g) The fiscal management board is established. The fiscal
336+42 management board consists of the following members:
337+ES 327—LS 7331/DI 120 8
338+1 (1) One (1) member appointed by the advisory board.
339+2 (2) One (1) member appointed by the mayor of the city of Gary.
340+3 (3) One (1) member, who must have experience working with or
341+4 for an urban school corporation, appointed by the secretary of
342+5 education.
343+6 (4) One (1) member, who must have experience working with or
344+7 for an urban school corporation, appointed by the state board of
345+8 education.
346+9 (h) The following apply to the fiscal management board and to the
347+10 members of the fiscal management board:
348+11 (1) The term of office of a member of the fiscal management
349+12 board is four (4) years, beginning on the date of appointment. A
350+13 member of the fiscal management board may be reappointed to
351+14 the fiscal management board. A member of the fiscal
352+15 management board may be removed for cause by the appointing
353+16 authority.
354+17 (2) A member of the fiscal management board must have the
355+18 following:
356+19 (A) At least three (3) years experience in financial
357+20 management.
358+21 (B) A meaningful background and work experience in finance
359+22 and business.
360+23 (C) An understanding of government contracts.
361+24 (D) Knowledge and experience in organizational effectiveness,
362+25 operations management, and implementing best practices.
363+26 (E) Experience in budget development and oversight.
364+27 (F) A demonstrated commitment to high professional and
365+28 ethical standards and a diverse workplace.
366+29 (G) An understanding of tax and other compliance
367+30 implications.
368+31 (3) A member of the advisory board may not serve as a member
369+32 of the fiscal management board.
370+33 (4) The fiscal management board:
371+34 (A) shall make recommendations to the emergency manager;
372+35 and
373+36 (B) shall advise the emergency manager as requested by the
374+37 emergency manager.
375+38 (5) The members of the fiscal management board are not entitled
376+39 to any compensation for their service on the fiscal management
377+40 board.
378+41 (6) The fiscal management board is abolished, and the terms of
379+42 the members of the fiscal management board are terminated, on
380+ES 327—LS 7331/DI 120 9
381+1 the date the school corporation's designation as a distressed
382+2 political subdivision is terminated as provided in section 13(b) of
383+3 this chapter.
384+4 (7) Under the supervision of the emergency manager, the fiscal
385+5 management board shall serve as a liaison to and shall work
386+6 jointly with the distressed unit appeal board, the mayor of the city
387+7 of Gary, and the department of education to develop a transition
388+8 plan to address issues or questions related to:
389+9 (A) the designation of the school corporation as a distressed
390+10 political subdivision and the transfer of powers and duties to
391+11 the emergency manager under this chapter; and
392+12 (B) the potential impact of the transition on the community
393+13 and the school corporation.
394+14 (8) Under the supervision of the emergency manager, the fiscal
395+15 management board shall work jointly with the distressed unit
396+16 appeal board, the mayor of the city of Gary, and the department
397+17 of education to provide information on a regular basis to parents,
398+18 students, employees of the school corporation, and the public on
399+19 the status of the transition.
400+20 (i) (g) The emergency manager shall employ a chief financial officer
401+21 for the school corporation. The chief financial officer is an employee
402+22 of the school corporation. The chief financial officer shall report to the
403+23 emergency manager and shall assist the emergency manager appointed
404+24 for the school corporation and the fiscal management board in carrying
405+25 out the day to day financial operations of the school corporation. Before
406+26 July 1, 2019, the compensation of the chief financial officer shall be
407+27 determined by the distressed unit appeal board. Before July 1, 2019, the
408+28 compensation of the chief financial officer shall be paid from the funds
409+29 appropriated to the distressed unit appeal board. After June 30, 2019,
410+30 The compensation of the chief financial officer shall be determined by
411+31 and paid by the school corporation. The chief financial officer:
412+32 (1) must possess, through both education and experience, an
413+33 understanding of finance and financial management; and
414+34 (2) must possess any other experience and must meet any other
415+35 requirements as required by the distressed unit appeal board to
416+36 ensure that the chief financial officer is qualified to carry out the
417+37 financial restructuring of the school corporation.
418+38 Before employing a chief financial officer under this subsection, the
419+39 emergency manager shall interview at least one (1) resident of the city
420+40 of Gary as a candidate for the position. If the emergency manager is not
421+41 able to interview a resident of the city of Gary as a candidate for the
422+42 position, the emergency manager shall interview at least one (1)
423+ES 327—LS 7331/DI 120 10
424+1 individual who is a resident of Lake County or northwest Indiana as a
425+2 candidate for the position.
426+3 (j) (h) The emergency manager shall employ a chief academic
427+4 officer for the school corporation, after consultation with the
428+5 department of education, who must have experience working with or
429+6 for an urban school corporation. The chief academic officer is an
430+7 employee of the school corporation. The chief academic officer shall
431+8 report to the emergency manager and shall assist the emergency
432+9 manager appointed for the school corporation and the fiscal
433+10 management board in carrying out the academic matters of the school
434+11 corporation. Before July 1, 2019, the compensation of the chief
435+12 academic officer shall be determined by the distressed unit appeal
436+13 board. Before July 1, 2019, the compensation of the chief academic
437+14 officer shall be paid from the funds appropriated to the distressed unit
438+15 appeal board. After June 30, 2019, The compensation of the chief
439+16 academic officer shall be determined by and paid by the school
440+17 corporation. The chief academic officer must:
441+18 (1) hold a valid license to teach in a public school under
442+19 IC 20-28-5;
443+20 (2) possess, through both education and experience, an
444+21 understanding of curriculum and academics; and
445+22 (3) possess any other experience and meet any other requirements
446+23 as required by the distressed unit appeal board to ensure that the
447+24 chief academic officer is qualified to carry out the academic goals
448+25 of the school corporation.
449+26 Before employing a chief academic officer under this subsection, the
450+27 emergency manager shall interview at least one (1) resident of the city
451+28 of Gary as a candidate for the position. If the emergency manager is not
452+29 able to interview a resident of the city of Gary as a candidate for the
453+30 position, the emergency manager shall interview at least one (1)
454+31 individual who is a resident of Lake County or northwest Indiana as a
455+32 candidate for the position.
456+33 (k) (i) The chief financial officer and chief academic officer shall
457+34 assist the emergency manager in carrying out the emergency manager's
458+35 duties under this chapter.
459+36 (l) (j) The annual budget adopted by the emergency manager for the
460+37 school corporation must dedicate a significant part of the school
461+38 corporation's budget to eliminating the school corporation's outstanding
462+39 financial obligations. The emergency manager shall attempt to
463+40 negotiate with the creditors of the school corporation to establish a plan
464+41 specifying the schedule for paying each creditor. The emergency
465+42 manager shall submit the plan to the distressed unit appeal board for
466+ES 327—LS 7331/DI 120 11
467+1 approval. The distressed unit appeal board must:
468+2 (1) review the plan submitted by the emergency manager; and
469+3 (2) not later than sixty (60) days after the plan is submitted,
470+4 either:
471+5 (A) approve the plan as submitted by the emergency manager;
472+6 or
473+7 (B) modify the plan as submitted by the emergency manager
474+8 and then approve the modified plan.
475+9 (m) (k) The emergency manager shall consider any
476+10 recommendations from the fiscal management board, the advisory
477+11 board, and the mayor of the city of Gary in developing the school
478+12 corporation's annual budget. The distressed unit appeal board must
479+13 review and approve the school corporation's annual budget that is
480+14 proposed by the emergency manager. When the emergency manager
481+15 submits the school corporation's proposed annual budget to the
482+16 distressed unit appeal board, the emergency manager shall provide
483+17 copies of the proposed annual budget to the fiscal management board
484+18 and the advisory board.
485+19 (n) (l) After considering any recommendations from the fiscal
486+20 management board, the advisory board, and the mayor of the city of
487+21 Gary, the emergency manager shall do the following:
488+22 (1) Conduct a financial and compliance audit of the operations of
489+23 the school corporation.
490+24 (2) Develop a written financial plan for the school corporation.
491+25 The object of the plan must be to achieve financial stability for
492+26 the school corporation, and the plan must include provisions for
493+27 paying all of the school corporation's outstanding obligations and
494+28 for paying all future obligations of the school corporation
495+29 (including any federal, state, or local taxes or assessments) in a
496+30 timely manner.
497+31 (o) (m) In addition to the report required by section 8.5(c)(5) of this
498+32 chapter, the emergency manager, the chief financial officer, and the
499+33 chief academic officer shall report quarterly to the distressed unit
500+34 appeal board in a format specified by the distressed unit appeal board.
501+35 The report must include:
502+36 (1) information concerning the actions that the school corporation
503+37 is taking to improve the financial condition of the school
504+38 corporation; and
505+39 (2) any other information required by the distressed unit appeal
506+40 board.
507+41 The emergency manager shall report more frequently than quarterly if
508+42 requested by the distressed unit appeal board. The emergency manager
509+ES 327—LS 7331/DI 120 12
510+1 shall provide copies of the report to the fiscal management board, the
511+2 advisory board, and the mayor of the city of Gary. The emergency
512+3 manager shall present each report at a public meeting of the fiscal
513+4 management board.
514+5 (p) (n) The school corporation shall do the following:
515+6 (1) Publish a copy of each report under subsection (o) (m) on the
516+7 school corporation's Internet web site, website, along with a link
517+8 to the main page of the Indiana transparency Internet web site
518+9 website established under IC 5-14-3.7 to provide access to
519+10 financial data for local schools.
520+11 (2) Make copies of each report available free of charge to the
521+12 public upon request.
522+13 (3) Provide copies of each report to the mayor of the city of Gary.
523+14 The mayor shall make copies of the reports available free of
524+15 charge to the public upon request.
525+16 (q) (o) The chief academic officer shall develop an education plan
526+17 to provide academic services to students in the school corporation and
527+18 to achieve academic progress. The education plan must include at least
528+19 the following components:
529+20 (1) An academic program designed to meet Indiana's academic
530+21 standards and to assist students in meeting those academic
531+22 standards.
532+23 (2) A plan to improve the academic performance of all students,
533+24 including improvement in the performance of students on
534+25 standardized tests.
535+26 (3) A plan to engage parents in school performance and school
536+27 activities, including regular meetings at each school involving
537+28 administrators, teachers, parents, and interested members of the
538+29 community.
539+30 (4) A plan to implement performance standards that will attract
540+31 students and families to the school corporation.
541+32 (5) A plan specifying how the school corporation will work
542+33 directly with the city of Gary:
543+34 (A) to make the schools a successful component of life within
544+35 the city; and
545+36 (B) to develop a sense of pride and progress in the operations
546+37 and accomplishments of the school corporation.
547+38 The chief financial officer and the chief academic officer shall submit
548+39 a report to the advisory board each quarter. The chief financial officer
549+40 and chief academic officer shall meet at least quarterly with the
550+41 executive committee of the bargaining unit to inform the executive
551+42 committee of the academic progress of the school corporation.
552+ES 327—LS 7331/DI 120 13
553+1 SECTION 7. IC 6-1.1-20.3-7.1 IS REPEALED [EFFECTIVE JULY
554+2 1, 2023]. Sec. 7.1. (a) This section applies only to the Muncie
555+3 Community Schools.
556+4 (b) The general assembly finds that the provisions of this section:
557+5 (1) are necessary to address the unique issues faced by the
558+6 Muncie Community Schools;
559+7 (2) are not precedent for and may not be appropriate for
560+8 addressing issues faced by other school corporations; and
561+9 (3) are consistent with the board designating the Muncie
562+10 Community school corporation as a distressed political
563+11 subdivision effective January 1, 2018.
564+12 (c) Notwithstanding section 7.5(d) of this chapter, the board shall
565+13 determine the compensation of the emergency manager, pay the
566+14 emergency manager's compensation, and reimburse the emergency
567+15 manager for actual and necessary expenses from funds appropriated to
568+16 the board.
569+17 (d) In addition to any other actions that the board may take under
570+18 this chapter concerning a distressed political subdivision, the board
571+19 may recommend, before July 1, 2020, to the state board of finance that
572+20 the state board of finance make an interest free loan to the school
573+21 corporation from the common school fund. The distressed unit appeal
574+22 board shall determine the payment schedule and the commencement
575+23 date for the loan. If the board makes a recommendation that such a loan
576+24 be made, the state board of finance may, notwithstanding IC 20-49,
577+25 make the loan for a term of not more than ten (10) years.
578+26 SECTION 8. IC 6-1.1-20.3-7.5, AS AMENDED BY
579+27 P.L.213-2018(ss), SECTION 8, IS AMENDED TO READ AS
580+28 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 7.5. (a) This section
581+29 does not apply to a school corporation designated before July 1, 2013,
582+30 as a distressed political subdivision.
583+31 (b) If a political subdivision is designated as a distressed political
584+subdivision under this chapter, the board shall appoint an emergency32
585+manager for the distressed political subdivision. An emergency33
586+manager serves at the pleasure of the board. 34 For purposes of IC 34-13,
587+35 an emergency manager appointed under this section is acting on behalf
588+of the distressed political subdivision and not the state.36
589+(c) The chairperson of the board shall oversee the activities of an37
590+emergency manager.38
591+(d) Except as provided in this chapter, the distressed political39
592+subdivision shall pay the emergency manager's compensation and40
593+reimburse the emergency manager for actual and necessary expenses.41
594+42 (e) A member of a fiscal management board, An emergency
595+ES 327—LS 7331/DI 120 14
596+1 manager, a chief financial officer, or a chief academic officer is
597+2 immune from civil liability for an act or omission within the scope and
598+3 arising out of the performance of duties prescribed by the board under
599+4 this chapter. This subsection does not apply to an act or omission that
600+5 constitutes gross negligence or willful misconduct.
601+6 (f) The attorney general shall represent a member of the distressed
602+7 unit appeal board, a member of a fiscal management board, an
603+8 emergency manager, a chief financial officer, or a chief academic
604+9 officer in a legal action arising out of the exercise of powers granted
605+10 under this chapter, if the member of the distressed unit appeal board,
606+11 the member of a fiscal management board, emergency manager, chief
607+12 financial officer, or chief academic officer makes a written request to
608+13 the attorney general requesting representation. The attorney general
609+14 may not represent a member of the distressed unit appeal board, a
610+15 member of a fiscal management board, an emergency manager, a chief
611+16 financial officer, or a chief academic officer under this subsection if the
612+17 legal action is initiated or the claim is asserted by the member of the
613+18 distressed unit appeal board, the member of the fiscal management
614+19 board, the emergency manager or the distressed political subdivision.
615+20 If the attorney general represents a member of the distressed unit
616+21 appeal board, a member of a fiscal management board, an emergency
617+22 manager, a chief financial officer, or a chief academic officer under this
618+23 subsection, the member of the distressed unit appeal board, the member
619+24 of a fiscal management board, emergency manager, chief financial
620+25 officer, or chief academic officer is entitled to recover attorney's fees
621+26 from the losing party to the extent the member of the distressed unit
622+27 appeal board, the member of the fiscal management board, emergency
623+28 manager, chief financial officer, or chief academic officer prevails. Any
624+29 attorney's fees recovered shall be deposited in the state general fund.
625+30 SECTION 9. IC 6-1.1-20.3-15, AS AMENDED BY
626+31 P.L.213-2018(ss), SECTION 13, IS AMENDED TO READ AS
627+32 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) The
628+33 executive of a political subdivision or a majority of the members of the
629+34 fiscal body of a political subdivision may request technical assistance
630+35 from the board in helping prevent the political subdivision from
631+36 becoming a distressed political subdivision. The board, by using the
632+37 health fiscal and qualitative indicators developed under IC 20-19-7 or
633+38 the fiscal health indicators developed under IC 5-14-3.8-8, shall
634+39 determine whether to provide assistance to the political subdivision.
635+40 (b) The board may do any of the following for a political subdivision
636+41 that receives assistance under subsection (a):
637+42 (1) Provide information and technical assistance with respect to
638+ES 327—LS 7331/DI 120 15
639+1 the data management, accounting, or other aspects of the fiscal
640+2 management of the political subdivision.
641+3 (2) Assist the political subdivision in obtaining assistance from
642+4 state agencies and other resources.
643+5 SECTION 10. IC 20-19-7-2 IS REPEALED [EFFECTIVE JULY 1,
644+6 2023]. Sec. 2. As used in this chapter, "executive director" means the
645+7 executive director of the DUAB.
646+8 SECTION 11. IC 20-19-7-2.3 IS ADDED TO THE INDIANA
647+9 CODE AS A NEW SECTION TO READ AS FOLLOWS
648+10 [EFFECTIVE UPON PASSAGE]: Sec. 2.3. As used in this chapter,
649+11 "public agency" has the meaning set forth in IC 5-14-1.5-2(a).
650+12 SECTION 12. IC 20-19-7-2.5 IS ADDED TO THE INDIANA
651+13 CODE AS A NEW SECTION TO READ AS FOLLOWS
652+14 [EFFECTIVE UPON PASSAGE]: Sec. 2.5. As used in this chapter,
653+15 "public official" means an elected or appointed official in the
654+16 executive, legislative, or judicial branch of the state government or
655+17 a political subdivision, and includes an individual acting on behalf
656+18 of a public employer, whether temporarily or permanently,
657+19 including, but not limited to, members of boards, committees,
658+20 commissions, authorities, and other instrumentalities of the state
659+21 or a political subdivision.
660+22 SECTION 13. IC 20-19-7-3 IS REPEALED [EFFECTIVE UPON
661+23 PASSAGE]. Sec. 3. (a) The fiscal and qualitative indicators committee
662+24 is established to make the following determinations:
663+25 (1) The determination of the fiscal and qualitative indicators to be
664+26 used for evaluating the financial condition of each school
665+27 corporation.
666+28 (2) The determination of the information that is to be presented on
667+29 the DUAB's Internet website or the management performance
668+30 hub's Internet web site in accordance with section 5(c) of this
669+31 chapter.
670+32 (3) The determination of how frequently to update:
671+33 (A) the fiscal and qualitative indicators being used to evaluate
672+34 the financial condition of school corporations; and
673+35 (B) the presentation of information on the DUAB's Internet
674+36 web site or the management performance hub's Internet web
675+37 site in accordance with section 5(c) of this chapter.
676+38 (b) The members of the committee must be employees of, and
677+39 appointed by, each of the following:
678+40 (1) The DUAB.
679+41 (2) The department of education.
680+42 (3) The budget agency.
681+ES 327—LS 7331/DI 120 16
682+1 (4) The state board of accounts.
683+2 (5) The department of local government finance.
684+3 (6) The management performance hub.
685+4 In addition, a member of the Indiana Association of School Business
686+5 Officials appointed by the Association's board of directors is a member
687+6 of the committee.
688+7 (c) The member appointed by the DUAB is the chairperson of the
689+8 committee.
690+9 (d) Members serve at the pleasure of the appointing authority.
691+10 SECTION 14. IC 20-19-7-4, AS ADDED BY P.L.213-2018(ss),
692+11 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
693+12 UPON PASSAGE]: Sec. 4. (a) Subject to review by the state budget
694+13 committee under section 6 of this chapter, the fiscal and qualitative
695+14 indicators committee DUAB shall determine the fiscal and qualitative
696+15 indicators to be used for evaluating the financial condition of each
697+16 school corporation.
698+17 (b) The fiscal indicators under subsection (a) may include the
699+18 following factors:
700+19 Annual capital expenses compared to total capital assets
701+20 Average daily membership (ADM)
702+21 Common school fund loans
703+22 Controlled project fund referendum revenue
704+23 Debt to assessed value and debt to ADM ratios
705+24 Education fund referendum revenue
706+25 Federal revenues
707+26 Fund cash balances by fund and overall
708+27 Fund deficits and surpluses by fund and overall
709+28 Fund deficits and surpluses combining the education and
710+29 operations fund and debt
711+30 Gross expenditures per ADM
712+31 Interfund transfers
713+32 Operating deficit or surplus
714+33 Outstanding debt and annual debt service obligations
715+34 Qualitative indicators as set forth in subsection (c)
716+35 Salaries and benefits
717+36 Seven (7) year trend lines using state fiscal years
718+37 State tuition support
719+38 Any other fiscal indicator determined by the fiscal and qualitative
720+39 indicators committee. DUAB.
721+40 (c) The qualitative indicators under subsection (a) may include the
722+41 following factors:
723+42 Failure to make required contributions or transfers
724+ES 327—LS 7331/DI 120 17
725+1 Issuance of judgment bonds
726+2 Missed debt payments
727+3 Missed payroll
728+4 Past due vendor payments
729+5 Any findings related to the financial condition of the school
730+6 corporation by the Indiana education employment relations board
731+7 Any other qualitative indicator determined by the fiscal and
732+8 qualitative indicators committee. DUAB.
733+9 SECTION 15. IC 20-19-7-5, AS ADDED BY P.L.213-2018(ss),
734+10 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
735+11 UPON PASSAGE]: Sec. 5. (a) Subject to review by the state budget
736+12 committee under section 6 of this chapter, the fiscal and qualitative
737+13 indicators committee DUAB shall prescribe the presentation of the
738+14 information of the fiscal and qualitative indicators used under this
739+15 chapter.
740+16 (b) The information under subsection (a) must be presented in a
741+17 manner that accomplishes the following:
742+18 (1) The information must be conveniently and easily accessed
743+19 from a single Internet web page.
744+20 (2) The information must be viewable in a format commonly
745+21 known as an Internet a dashboard.
746+22 (3) The information must be viewable in graphical form.
747+23 (4) The information must be easily searchable.
748+24 (5) The underlying data must be downloadable in a format that
749+25 can be imported into standard spreadsheet computer software.
750+26 (c) The DUAB shall periodically publish the information under
751+27 subsection (a) on its Internet web site website or the management
752+28 performance hub's Internet web site. website. The management
753+29 performance hub shall assist the DUAB in the development of the
754+30 dashboard for publication.
755+31 SECTION 16. IC 20-19-7-6, AS ADDED BY P.L.213-2018(ss),
756+32 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
757+33 UPON PASSAGE]: Sec. 6. (a) Before making a final determination
758+34 under section 4 of this chapter concerning the fiscal and qualitative
759+35 indicators that will be used for evaluating the financial condition of
760+36 school corporations, the fiscal and qualitative indicators committee
761+37 DUAB must present a draft of the proposed fiscal and qualitative
762+38 indicators to the state budget committee for review by the state budget
763+39 committee.
764+40 (b) Before prescribing the requirements under section 5 of this
765+41 chapter for the presentation of the fiscal and qualitative indicators used
766+42 under this chapter, the fiscal and qualitative indicators committee
767+ES 327—LS 7331/DI 120 18
768+1 DUAB must present a draft of the proposed requirements to the state
769+2 budget committee for review by the state budget committee.
770+3 SECTION 17. IC 20-19-7-7 IS REPEALED [EFFECTIVE UPON
771+4 PASSAGE]. Sec. 7. The fiscal and qualitative indicators committee
772+5 shall before January 1, 2019, publish the fiscal and qualitative
773+6 indicators for each school corporation on the DUAB's Internet web site
774+7 or the management performance hub's Internet web site.
775+8 SECTION 18. IC 20-19-7-8, AS ADDED BY P.L.213-2018(ss),
776+9 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
777+10 JULY 1, 2023]: Sec. 8. The DUAB shall may adopt policies and
778+11 procedures that will be used by the DUAB to implement this chapter.
779+12 Policies and procedures adopted under this section may include
780+13 processes that will be used by the DUAB to do the following:
781+14 (1) Identify school corporations that demonstrate signs of
782+15 financial distress.
783+16 (2) Determine when a corrective action plan is necessary for
784+17 a school corporation.
785+18 (3) Determine the conditions that must be satisfied before a
786+19 school corporation:
787+20 (A) will no longer be subject to a corrective action plan;
788+21 and
789+22 (B) will be considered as financially healthy.
790+23 SECTION 19. IC 20-19-7-9 IS REPEALED [EFFECTIVE JULY 1,
791+24 2023]. Sec. 9. The executive director shall present to the state budget
792+25 committee a report concerning the processes that will be used by
793+26 DUAB and the executive director to do the following:
794+27 (1) Identify school corporations that demonstrate signs of
795+28 financial distress.
796+29 (2) Determine when a corrective action plan is necessary for a
797+30 school corporation.
798+31 (3) Determine the conditions that must be satisfied before a
799+32 school corporation:
800+33 (A) will no longer be subject to a corrective action plan; and
801+34 (B) will be considered as financially healthy.
802+35 SECTION 20. IC 20-19-7-10, AS ADDED BY P.L.213-2018(ss),
803+36 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
804+37 JULY 1, 2023]: Sec. 10. Before June 1, 2019, the executive director
805+38 shall prepare and submit to the DUAB an initial report identifying
806+39 those school corporations for which a corrective action plan may be
807+40 appropriate, based on the fiscal and qualitative indicators. The
808+41 executive director DUAB shall on a schedule determined by the DUAB
809+42 submit subsequent periodically prepare reports identifying those
810+ES 327—LS 7331/DI 120 19
811+1 school corporations for which a corrective action plan may be
812+2 appropriate, based on the fiscal and qualitative indicators. The DUAB
813+3 shall make a determination concerning which school corporations the
814+4 executive director DUAB shall contact for purposes of conducting an
815+5 assessment under section 11 of this chapter.
816+6 SECTION 21. IC 20-19-7-11, AS ADDED BY P.L.213-2018(ss),
817+7 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
818+8 JULY 1, 2023]: Sec. 11. (a) The executive director DUAB shall do the
819+9 following:
820+10 (1) Contact the governing body and the superintendent of each
821+11 school corporation for which the distressed unit appeal board
822+12 DUAB makes a determination under section 10 of this chapter.
823+13 (2) Carry out an assessment of the financial condition of each
824+14 school corporation for which the DUAB makes a determination
825+15 under section 10 of this chapter.
826+16 (b) A school corporation for which an assessment of financial
827+17 condition is carried out under this section shall:
828+18 (1) cooperate with the executive director DUAB as the executive
829+19 director DUAB carries out the assessment of the school
830+20 corporation's financial condition; and
831+21 (2) provide any information and documents requested by the
832+22 executive director. DUAB.
833+23 SECTION 22. IC 20-19-7-12, AS ADDED BY P.L.213-2018(ss),
834+24 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
835+25 JULY 1, 2023]: Sec. 12. (a) After reviewing:
836+26 (1) the assessment of a school corporation's financial condition
837+27 made by the executive director under section 11 of this chapter;
838+28 and
839+29 (2) the school corporation's fiscal and qualitative indicators;
840+30 the DUAB shall make a determination of whether a corrective action
841+31 plan is necessary for the school corporation.
842+32 (b) If the DUAB makes a determination that a corrective action plan
843+33 is necessary for the school corporation, the DUAB shall notify the
844+34 governing body and the superintendent of the school corporation that
845+35 the school corporation must develop and submit to the DUAB a
846+36 corrective action plan for the school corporation within ninety (90)
847+37 days after the notice is provided.
848+38 (c) If a school corporation does not prepare and submit a corrective
849+39 action plan to the DUAB within ninety (90) days after the notice is
850+40 provided under subsection (b), the DUAB shall place the school
851+41 corporation on the watch list under section 17 of this chapter.
852+42 SECTION 23. IC 20-19-7-13, AS ADDED BY P.L.213-2018(ss),
853+ES 327—LS 7331/DI 120 20
854+1 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
855+2 JULY 1, 2023]: Sec. 13. (a) Upon the request of a school corporation
856+3 that is required to submit a corrective action plan, the executive
857+4 director DUAB and other appropriate state departments and agencies
858+5 shall:
859+6 (1) assist the school corporation in developing the corrective
860+7 action plan; and
861+8 (2) provide technical assistance to the school corporation.
862+9 (b) The DUAB and any other state departments or agencies that
863+10 provide assistance to a school corporation under this section are not
864+11 responsible for implementing the corrective action plan.
865+12 SECTION 24. IC 20-19-7-14, AS ADDED BY P.L.213-2018(ss),
866+13 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
867+14 UPON PASSAGE]: Sec. 14. The superintendent of a school
868+15 corporation that is required to submit a corrective action plan shall
869+16 update the governing body of the school corporation, as requested by
870+17 the governing body, concerning the implementation of the corrective
871+18 action plan submitted to the DUAB. The governing body of a school
872+19 corporation that is required to prepare a corrective action plan
873+20 may meet in executive session to receive the updates of the
874+21 superintendent. discuss all aspects of the corrective action plan,
875+22 including voting to approve a corrective action plan or
876+23 modifications under section 16 of this chapter.
877+24 SECTION 25. IC 20-19-7-15, AS ADDED BY P.L.213-2018(ss),
878+25 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
879+26 JULY 1, 2023]: Sec. 15. The executive director DUAB shall meet at
880+27 least once every ninety (90) days with the school corporation's
881+28 superintendent, the president of the school corporation's governing
882+29 body, and (as necessary) other administrators of the school corporation
883+30 to discuss the corrective action plan and the school corporation's
884+31 progress in implementing the corrective action plan.
885+32 SECTION 26. IC 20-19-7-16, AS ADDED BY P.L.213-2018(ss),
886+33 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
887+34 UPON PASSAGE]: Sec. 16. The following apply after a corrective
888+35 action plan is submitted to the DUAB:
889+36 (1) The DUAB may modify the corrective action plan at any time
890+37 if the DUAB determines that the modification is necessary.
891+38 (2) The superintendent or the governing body of the school
892+39 corporation may request the DUAB to modify the corrective
893+40 action plan, and the DUAB may make the requested modification.
894+41 If the superintendent of the school corporation makes the request,
895+42 the superintendent must notify the governing body of the school
896+ES 327—LS 7331/DI 120 21
897+1 corporation of the requested modification.
898+2 SECTION 27. IC 20-19-7-17, AS ADDED BY P.L.213-2018(ss),
899+3 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
900+4 JULY 1, 2023]: Sec. 17. (a) The DUAB shall place the school
901+5 corporation on a watch list if:
902+6 (1) the executive director DUAB determines that the school
903+7 corporation is not in compliance with the school corporation's
904+8 corrective action plan;
905+9 (2) the executive director DUAB notifies the superintendent and
906+10 governing body of the school corporation that:
907+11 (A) the school corporation is not in compliance with the school
908+12 corporation's corrective action plan; and
909+13 (B) the school corporation must achieve compliance with the
910+14 school corporation's corrective action plan within a period
911+15 specified by the executive director; DUAB; and
912+16 (3) the executive director DUAB determines that the school
913+17 corporation has not achieved compliance with the school
914+18 corporation's corrective action plan within the period specified in
915+19 subdivision (2).
916+20 (b) The DUAB shall place a school corporation on the watch list if
917+21 required by section 12(c) of this chapter.
918+22 (c) If the DUAB places a school corporation on the watch list under
919+23 this section, the executive director DUAB shall notify:
920+24 (1) the superintendent and governing body of the school
921+25 corporation; and
922+26 (2) the budget director.
923+27 (d) The state budget committee shall review the school corporation's
924+28 placement on the watch list.
925+29 SECTION 28. IC 20-19-7-18, AS ADDED BY P.L.213-2018(ss),
926+30 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
927+31 UPON PASSAGE]: Sec. 18. (a) Notwithstanding any other law, all
928+32 reports, correspondence, and other records related to a school
929+33 corporation's corrective action plan, including the initial report reports
930+34 prepared by the executive director DUAB under section 10 of this
931+35 chapter and an assessment prepared under section 11 of this chapter,
932+36 and the placement of a school corporation on the watch list are
933+37 excepted from public disclosure under IC 5-14-3 or any other law at the
934+38 discretion of the DUAB or the school corporation unless and until the
935+39 school corporation is placed on the watch list and the state budget
936+40 committee has reviewed the school corporation's placement on the
937+41 watch list. If the DUAB or a school corporation discloses any reports,
938+42 correspondence, and other records related to a school corporation's
939+ES 327—LS 7331/DI 120 22
940+1 corrective action plan, including the initial report a report prepared by
941+2 the executive director DUAB under section 10 of this chapter and an
942+3 assessment prepared under section 11 of this chapter, to other state
943+4 agencies or officials public agencies or public officials prior to a
944+5 school corporation's placement on the watch list and review by the state
945+6 budget committee, these public agencies or public officials may not
946+7 disclose the reports, correspondence, and other records, or the
947+8 information contained in those reports, correspondence, and other
948+9 records without the permission of the DUAB or the school
949+10 corporation.
950+11 (b) If the DUAB or a school corporation discloses to public
951+12 agencies or public officials that the school corporation was
952+13 required to submit a corrective action plan, the public agencies or
953+14 public officials may not disclose that information without the
954+15 permission of the DUAB or the school corporation.
955+16 (b) (c) The DUAB shall hold executive sessions to consider reports
956+17 related to a school corporation's corrective action plan, including the
957+18 initial report reports prepared by the executive director DUAB under
958+19 section 10 of this chapter and an assessment prepared under section 11
959+20 of this chapter, and to make final determinations required under
960+21 sections 10, 12, 16, and 17 of this chapter. The final determinations
961+22 required under sections 10, 12, 16, and 17 of this chapter shall be
962+23 made in executive session.
963+24 SECTION 29. IC 20-19-7-19, AS ADDED BY P.L.213-2018(ss),
964+25 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
965+26 UPON PASSAGE]: Sec. 19. (a) The fiscal and qualitative indicators
966+27 committee shall DUAB may do the following each year:
967+28 (1) Review the fiscal and qualitative indicators used under this
968+29 chapter to evaluate the financial condition of school corporations.
969+30 (2) Determine if it is appropriate to change one (1) or more of the
970+31 fiscal and qualitative indicators.
971+32 (b) Before the fiscal and qualitative indicators committee DUAB
972+33 may change a fiscal or qualitative indicator, the fiscal and qualitative
973+34 indicators committee DUAB must first submit a report in an electronic
974+35 format to the state budget committee specifying the proposed change
975+36 in the fiscal or qualitative indicator.
976+37 SECTION 30. IC 20-19-7-20, AS ADDED BY P.L.213-2018(ss),
977+38 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
978+39 JULY 1, 2023]: Sec. 20. (a) The DUAB shall may do the following
979+40 each year:
980+41 (1) Review policies and procedures adopted under section 8 of
981+42 this chapter by the DUAB.
982+ES 327—LS 7331/DI 120 23
983+1 (2) Determine if it is appropriate to change one (1) or more of
984+2 those policies and procedures.
985+3 (b) Before the DUAB may change a policy or procedure adopted
986+4 under section 8 of this chapter, the DUAB must first submit a report in
987+5 an electronic format to the state budget committee specifying the
988+6 proposed change in the policy or procedure.
989+7 SECTION 31. IC 20-23-8-5, AS AMENDED BY P.L.233-2015,
990+8 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
991+9 JULY 1, 2023]: Sec. 5. As used in this chapter, "school corporation"
992+10 means a local public school corporation established under the laws of
993+11 Indiana. The term does not include a school corporation covered by
994+12 IC 20-23-12, IC 20-23-12.1, IC 20-23-17, or IC 20-23-17.2.
995+13 SECTION 32. IC 20-23-12-2, AS AMENDED BY P.L.104-2022,
996+14 SECTION 123, IS AMENDED TO READ AS FOLLOWS
997+15 [EFFECTIVE UPON PASSAGE]: Sec. 2. As used in this chapter,
998+16 "school corporation" means a school corporation that is located in a city
999+17 having a population of more than sixty-nine thousand (69,000) and less
1000+18 than sixty-nine thousand five hundred (69,500). was designated as a
1001+19 distressed political subdivision in 2017 under IC 6-1.1-20.3-6.8(d).
1002+20 SECTION 33. IC 20-23-12-3, AS AMENDED BY
1003+21 P.L.213-2018(ss), SECTION 16, IS AMENDED TO READ AS
1004+22 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The
1005+23 emergency manager appointed by the distressed unit appeal board
1006+24 under IC 6-1.1-20.3 shall act as the governing body of the school
1007+25 corporation and has the powers set forth in IC 6-1.1-20.3-8.5, including
1008+26 the powers and duties of the governing body of the school corporation
1009+27 until the school corporation's status as a distressed political
1010+28 subdivision is terminated under IC 6-1.1-20.3-13(b). The school
1011+29 corporation shall also have an advisory board that consists of seven (7)
1012+30 members elected as follows:
1013+31 (1) On a nonpartisan basis.
1014+32 (2) In a general election in the county.
1015+33 The advisory board is created to provide nonbinding recommendations
1016+34 to the emergency manager.
1017+35 (b) Six (6) of the members shall be elected from the school districts
1018+36 drawn under section 4 of this chapter. Each member:
1019+37 (1) is elected from the school district in which the member
1020+38 resides; and
1021+39 (2) upon election and in conducting the business of the advisory
1022+40 board, represents the interests of the entire school corporation.
1023+41 (c) One (1) of the members elected:
1024+42 (1) is the at-large member of the advisory board;
1025+ES 327—LS 7331/DI 120 24
1026+1 (2) may reside in any of the districts drawn under section 4 of this
1027+2 chapter; and
1028+3 (3) upon election and in conducting the business of the advisory
1029+4 board, represents the interests of the entire school corporation.
1030+5 (d) A per diem may not be paid to a member.
1031+6 (e) The advisory board may hold a public meeting subject to the
1032+7 limits on the number of meetings set forth in IC 6-1.1-20.3-6.8(d). The
1033+8 advisory board is subject to IC 5-14-1.5 (the open door law) for these
1034+9 meetings. The advisory board may hold additional meetings that are
1035+10 authorized as executive sessions under IC 5-14-1.5 (the open door law)
1036+11 as provided in IC 5-14-1.5-6.1. The advisory board is subject to the
1037+12 public notice requirements of IC 5-14-1.5 (the open door law) for these
1038+13 additional meetings. The records of the advisory board are subject to
1039+14 IC 5-14-3 (access to public records).
1040+15 SECTION 34. IC 20-23-12-4 IS REPEALED [EFFECTIVE UPON
1041+16 PASSAGE]. Sec. 4. The districts are drawn on the same lines as the
1042+17 common council districts referred to in IC 36-4-6-3.
1043+18 SECTION 35. IC 20-23-12-5 IS REPEALED [EFFECTIVE UPON
1044+19 PASSAGE]. Sec. 5. (a) The six (6) members who are elected for a
1045+20 position on the advisory board described under section 3(b) of this
1046+21 chapter are determined as follows:
1047+22 (1) Each prospective candidate must file a nomination petition
1048+23 with the board of elections and registration not earlier than one
1049+24 hundred four (104) days and not later than noon seventy-four (74)
1050+25 days before the election at which the members are to be elected
1051+26 that includes the following information:
1052+27 (A) The name of the prospective candidate.
1053+28 (B) The district in which the prospective candidate resides.
1054+29 (C) The signatures of at least one hundred (100) registered
1055+30 voters residing in the school corporation.
1056+31 (D) The fact that the prospective candidate is running for a
1057+32 district position.
1058+33 (E) A certification that the prospective candidate meets the
1059+34 qualifications for candidacy imposed by this chapter.
1060+35 (2) Only eligible voters residing in the district may vote for a
1061+36 candidate.
1062+37 (3) The candidate within each district who receives the greatest
1063+38 number of votes in the district is elected.
1064+39 (b) The at-large member elected under section 3(c) of this chapter
1065+40 is determined as follows:
1066+41 (1) Each prospective candidate must file a nomination petition
1067+42 with the clerk of the circuit court at least seventy-four (74) days
1068+ES 327—LS 7331/DI 120 25
1069+1 before the election at which the at-large member is to be elected.
1070+2 The petition must include the following information:
1071+3 (A) The name of the prospective candidate.
1072+4 (B) The signatures of at least one hundred (100) registered
1073+5 voters residing within the school corporation.
1074+6 (C) The fact that the prospective candidate is running for the
1075+7 at-large position on the advisory board.
1076+8 (D) A certification that the prospective candidate meets the
1077+9 qualifications for candidacy imposed by this chapter.
1078+10 (2) Only eligible voters residing in the school corporation may
1079+11 vote for a candidate.
1080+12 (3) The candidate who:
1081+13 (A) runs for the at-large position on the advisory board; and
1082+14 (B) receives the greatest number of votes in the school
1083+15 corporation;
1084+16 is elected to the at-large position.
1085+17 SECTION 36. IC 20-23-12-6 IS REPEALED [EFFECTIVE UPON
1086+18 PASSAGE]. Sec. 6. (a) A candidate who runs for a position on the
1087+19 advisory board described under section 3(b) of this chapter must reside
1088+20 in the school corporation district for which the candidate filed.
1089+21 (b) A candidate who runs for the at-large position on the advisory
1090+22 board described in section 3(c) of this chapter must reside in the school
1091+23 corporation.
1092+24 SECTION 37. IC 20-23-12-7 IS REPEALED [EFFECTIVE UPON
1093+25 PASSAGE]. Sec. 7. The state board, with assistance from the county
1094+26 election board, shall establish:
1095+27 (1) balloting procedures under IC 3 for the election; and
1096+28 (2) all other procedures required to implement this chapter.
1097+29 SECTION 38. IC 20-23-12-8 IS REPEALED [EFFECTIVE UPON
1098+30 PASSAGE]. Sec. 8. (a) The term of each person elected to serve on the
1099+31 advisory board is four (4) years.
1100+32 (b) The term of each person elected to serve on the advisory board
1101+33 begins on the date set in the school corporation's organization plan. The
1102+34 date set in the organization plan for an elected member of the advisory
1103+35 board to take office may not be more than fourteen (14) months after
1104+36 the date of the member's election. If the school corporation's
1105+37 organization plan does not set a date for an elected member of the
1106+38 advisory board to take office, the member takes office January 1 that
1107+39 immediately follows the person's election.
1108+40 SECTION 39. IC 20-23-12-9 IS REPEALED [EFFECTIVE UPON
1109+41 PASSAGE]. Sec. 9. The members are elected as follows:
1110+42 (1) Three (3) of the members elected under section 3(b) of this
1111+ES 327—LS 7331/DI 120 26
1112+1 chapter are elected at the general election to be held in 2020 and
1113+2 every four (4) years thereafter.
1114+3 (2) Three (3) of the members elected under section 3(b) of this
1115+4 chapter are elected at the general election to be held in 2022 and
1116+5 every four (4) years thereafter.
1117+6 (3) The at-large member elected under section 3(c) of this chapter
1118+7 is elected at the general election to be held in 2024 and every four
1119+8 (4) years thereafter.
1120+9 SECTION 40. IC 20-23-12-10 IS REPEALED [EFFECTIVE UPON
1121+10 PASSAGE]. Sec. 10. (a) A vacancy on the advisory board is created
1122+11 when:
1123+12 (1) a member:
1124+13 (A) dies;
1125+14 (B) resigns from the advisory board;
1126+15 (C) ceases to be a resident of the school corporation;
1127+16 (D) fails to attend, except for reason of chronic illness, six (6)
1128+17 regularly scheduled meetings of the advisory board in any
1129+18 twelve (12) month period; or
1130+19 (E) ceases to be a resident of the school district in which the
1131+20 member was elected; or
1132+21 (2) a vacancy is created under any other law.
1133+22 (b) The advisory board shall temporarily fill a vacancy on the
1134+23 advisory board as soon as practicable after the vacancy occurs.
1135+24 SECTION 41. IC 20-23-12-11 IS REPEALED [EFFECTIVE UPON
1136+25 PASSAGE]. Sec. 11. Before August 1 of each year, the school
1137+26 corporation shall file with the secretary of education a list of the:
1138+27 (1) names and addresses of members of the school corporation's
1139+28 advisory board;
1140+29 (2) names and addresses of the school corporation's officers; and
1141+30 (3) expiration dates of the terms of the school corporation's
1142+31 members and officers.
1143+32 The school corporation shall file any change in the list not later than
1144+33 thirty (30) days after the change occurs.
1145+34 SECTION 42. IC 20-23-12.1 IS ADDED TO THE INDIANA
1146+35 CODE AS A NEW CHAPTER TO READ AS FOLLOWS
1147+36 [EFFECTIVE JULY 1, 2023]:
1148+37 Chapter 12.1. Appointment of Governing Body Members for
1149+38 Gary Community School Corporation
1150+39 Sec. 0.5. The general assembly recognizes the following:
1151+40 (1) The Gary Community School Corporation has achieved
1152+41 financial and operational stability.
1153+42 (2) The Gary Community School Corporation is expected to
1154+ES 327—LS 7331/DI 120 27
1155+1 meet the conditions for termination of distressed status in the
1156+2 near future.
1157+3 (3) The Gary Community School Corporation no longer
1158+4 requires special state oversight by the distressed unit appeal
1159+5 board.
1160+6 (4) That it is appropriate to transition to a new governing
1161+7 body.
1162+8 (5) The state should continue to monitor and evaluate the
1163+9 effectiveness of the governance structure.
1164+10 Sec. 1. As used in this chapter, "school corporation" means the
1165+11 Gary Community School Corporation.
1166+12 Sec. 2. (a) The governing body of the Gary Community School
1167+13 Corporation consists of the following five (5) members:
1168+14 (1) One (1) member appointed by the executive of the city of
1169+15 Gary. The member appointed under this subdivision must
1170+16 reside within the boundaries of the Gary Community School
1171+17 Corporation.
1172+18 (2) One (1) member appointed by the common council of the
1173+19 city of Gary. The member appointed under this subdivision
1174+20 must reside within the boundaries of the Gary Community
1175+21 School Corporation.
1176+22 (3) Three (3) members appointed by the secretary of
1177+23 education. Of the members appointed under this subdivision:
1178+24 (A) at least one (1) member must reside within the
1179+25 boundaries of the Gary Community School Corporation;
1180+26 and
1181+27 (B) at least one (1) member (in addition to the member
1182+28 described in clause (A)) must reside in Lake County.
1183+29 In appointing members under this subdivision, the secretary
1184+30 of education may consider whether a candidate has
1185+31 experience and expertise in kindergarten through grade 12
1186+32 education, financial management, career development, or
1187+33 higher education.
1188+34 (b) The initial members appointed under subsection (a) shall
1189+35 serve staggered terms beginning July 1, 2023, as follows:
1190+36 (1) The initial member appointed under subsection (a)(1) must
1191+37 be appointed for one (1) year.
1192+38 (2) The initial member appointed under subsection (a)(2) must
1193+39 be appointed for two (2) years.
1194+40 (3) Two (2) of the initial members appointed under subsection
1195+41 (a)(3) must be appointed for one (1) year.
1196+42 (4) One (1) of the initial members appointed under subsection
1197+ES 327—LS 7331/DI 120 28
1198+1 (a)(3), who is not appointed to an initial term described in
1199+2 subdivision (3), must be appointed for two (2) years.
1200+3 (c) A member's term expires June 30 in the applicable year of
1201+4 expiration. Thereafter, subject to subsection (d), each member
1202+5 shall serve for a term of two (2) years. A member appointed under
1203+6 subsection (a) may be reappointed to an unlimited number of
1204+7 successive terms.
1205+8 (d) A member of the governing body serves at the pleasure of
1206+9 the appointing authority of the member. Vacancies in the
1207+10 appointments to the governing body shall be filled by the original
1208+11 appointing authority in accordance with the term requirements
1209+12 established in this section. An appointed member serves for the
1210+13 remainder of an unexpired term.
1211+14 (e) The chairperson of the governing body shall be appointed by
1212+15 the secretary of education from the members appointed under
1213+16 subsection (a).
1214+17 Sec. 3. (a) The governing body appointed under section 2 of this
1215+18 chapter shall serve in an advisory capacity to the distressed unit
1216+19 appeal board and the emergency manager appointed by the
1217+20 distressed unit appeal board under IC 6-1.1-20.3, until the later of:
1218+21 (1) July 1, 2024; or
1219+22 (2) a date on which the school corporation's status as a
1220+23 distressed political subdivision is terminated.
1221+24 (b) Notwithstanding subsection (a), the governing body
1222+25 appointed under section 2 of this chapter may select a
1223+26 superintendent or executive leader for the school corporation
1224+27 whose employment would begin on the later of:
1225+28 (1) July 1, 2024; or
1226+29 (2) a date on which the school corporation's status as a
1227+30 distressed political subdivision is terminated.
1228+31 (c) Notwithstanding subsection (a), the governing body
1229+32 appointed under section 2 of this chapter may vote to make the
1230+33 appointments to the library board under IC 36-12-2-9(3).
1231+34 Sec. 4. (a) On the later of:
1232+35 (1) July 1, 2024; or
1233+36 (2) the date on which the school corporation's status as a
1234+37 distressed political subdivision is terminated;
1235+38 the governing body appointed under section 2 of this chapter
1236+39 assumes all the powers, rights, duties, and obligations of a
1237+40 community school corporation as set forth in IC 20-23-4-26.
1238+41 (b) For the purposes of annual budgeting, IC 6-1.1-17-20 does
1239+42 not apply to the governing body. The governing body is considered
1240+ES 327—LS 7331/DI 120 29
1241+1 a governing body with the majority of members elected for the
1242+2 purposes of annual budgeting.
1243+3 Sec. 5. Not later than October 31, 2025, and each October 31
1244+4 thereafter, the governing body shall submit to the distressed unit
1245+5 appeal board a report summarizing the financial position and
1246+6 operations of the school corporation for the previous state fiscal
1247+7 year. The report shall include any additional information
1248+8 requested by the distressed unit appeal board and be in the form
1249+9 specified by the distressed unit appeal board.
1250+10 Sec. 6. Before July 1, 2026, the governing body shall also submit
1251+11 a report to the distressed unit appeal board and the budget
1252+12 committee. The report required by this section must address each
1253+13 of the following topics:
1254+14 (1) Finances.
1255+15 (2) Operations.
1256+16 (3) Academics.
1257+17 (4) The effectiveness of the governance structure.
1258+18 The distressed unit appeal board shall present the topics addressed
1259+19 by the report to the budget committee before November 1, 2026.
1260+20 SECTION 43. IC 20-40-2-0.2 IS ADDED TO THE INDIANA
1261+21 CODE AS A NEW SECTION TO READ AS FOLLOWS
1262+22 [EFFECTIVE UPON PASSAGE]: Sec. 0.2. As used in this chapter,
1263+23 "DUAB" means the distressed unit appeal board established by
1264+24 IC 6-1.1-20.3-4.
1265+25 SECTION 44. IC 20-40-2-10, AS ADDED BY P.L.161-2019,
1266+26 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1267+27 UPON PASSAGE]: Sec. 10. (a) After the department completes the
1268+28 school corporation notice requirement under section 9 of this chapter,
1269+29 the department shall notify the state board, fiscal and qualitative
1270+30 indicators committee, DUAB, and Indiana education employment
1271+31 relations board as soon as possible of all school corporations that
1272+32 received a notice stating they were on the excessive education fund
1273+33 transfer list for the immediately preceding calendar year.
1274+34 (b) Upon receipt of the department notice to a school corporation
1275+35 under section 9 of this chapter, the school corporation's superintendent
1276+36 and financial personnel, including the school's business officer, shall
1277+37 prepare and submit explanatory documentation within ninety (90) days,
1278+38 explaining the following:
1279+39 (1) How and why the school corporation's leadership believes the
1280+40 school corporation failed to meet the education fund transfer
1281+41 target percentage.
1282+42 (2) The steps the school corporation's leadership is planning or
1283+ES 327—LS 7331/DI 120 30
1284+1 actively taking to budget and spend during the next calendar year
1285+2 to meet the education fund transfer target percentage for the next
1286+3 calendar year.
1287+4 (c) The school corporation's superintendent shall submit the
1288+5 explanatory documentation to the department and the fiscal and
1289+6 qualitative indicators committee. DUAB.
1290+7 (d) Upon submission of the explanatory documentation under
1291+8 subsection (b), the school corporation's superintendent shall present the
1292+9 explanatory documentation to the school corporation's governing body
1293+10 at its next public meeting. The governing body shall enter both the
1294+11 actual documentation and corresponding discussion into its official
1295+12 minutes for that meeting.
1296+13 (e) Upon the completion of the duties under subsection (d), the
1297+14 school corporation shall publish the explanatory documentation
1298+15 alongside any further notices and related reports from the department
1299+16 on its Internet web site website within thirty (30) days.
1300+17 (f) Upon receipt of a school corporation's explanatory
1301+18 documentation, the fiscal and qualitative indicators committee DUAB
1302+19 shall officially acknowledge receipt of the documentation at its next
1303+20 public meeting and enter the receipt into its official minutes for that
1304+21 meeting.
1305+22 (g) Upon receipt of the explanatory documentation, the department,
1306+23 in collaboration with the fiscal and qualitative indicators committee,
1307+24 DUAB, shall review the documentation within sixty (60) days to make
1308+25 a preliminary determination of whether the documentation
1309+26 satisfactorily demonstrates that the school corporation's leadership has
1310+27 outlined and begun a corrective action plan to make progress in
1311+28 meeting the education fund transfer target percentage for the next
1312+29 calendar year.
1313+30 (h) If the department determines the explanatory documentation is
1314+31 not satisfactory, the department may contact the superintendent and
1315+32 financial personnel, including the school business officer, of the school
1316+33 corporation to schedule as soon as possible an appearance before the
1317+34 fiscal and qualitative indicators committee DUAB at a public meeting
1318+35 to provide an opportunity to explain the details within the explanatory
1319+36 documentation, and to explain to the fiscal and qualitative indicators
1320+37 committee DUAB the school corporation's budgeting and
1321+38 compensation levels in relation to the following for the school
1322+39 corporation:
1323+40 (1) How and why the education fund transfer target percentage
1324+41 was not met during the previous calendar year.
1325+42 (2) Total combined expenditures.
1326+ES 327—LS 7331/DI 120 31
1327+1 (3) Student instructional expenditures.
1328+2 (4) Noninstructional expenditures.
1329+3 (5) Full-time teacher compensation expenditures.
1330+4 (6) Nonteaching, full-time administrative personnel compensation
1331+5 expenditures.
1332+6 (7) Nonteaching staff personnel compensation expenditures.
1333+7 (8) Any prior or planned attempts to seek the assistance available
1334+8 under this chapter from the Indiana education employment
1335+9 relations board and the department's division of finance.
1336+10 (9) Any prior or planned pooling of resources, combined
1337+11 purchases, usage of shared administrative services, or
1338+12 collaboration with contiguous school corporations in reducing
1339+13 noninstructional expenditures as described under IC 20-42.5-2-1.
1340+14 (10) Any prior or planned participation in a county school safety
1341+15 commission under IC 5-2-10.1-10 to assist and reduce school
1342+16 safety expenditures.
1343+17 (11) Any prior or planned consideration of meeting the
1344+18 requirements of and applying for school corporation efficiency
1345+19 incentive grants under IC 36-1.5-6.
1346+20 (i) The fiscal and qualitative indicators committee DUAB may
1347+21 contact the superintendent and financial personnel, including the
1348+22 school's business officer, of a school corporation that has been included
1349+23 on the department's excessive education fund transfer list for at least
1350+24 two (2) immediately preceding calendar years to provide the school
1351+25 corporation an opportunity to explain to the fiscal and qualitative
1352+26 indicators committee DUAB in a public meeting the school
1353+27 corporation's budgeting and compensation levels in relation to the
1354+28 items listed in subsection (h).
1355+29 (j) After the fiscal and qualitative indicators committee DUAB
1356+30 receives the school corporation's explanation under this section, the
1357+31 fiscal and qualitative indicators committee DUAB may issue an official
1358+32 recommendation to the school corporation to perform a review and
1359+33 improve its budgeting procedures in consultation with any state
1360+34 agencies the fiscal and qualitative indicators committee DUAB
1361+35 considers appropriate. The state agencies specified by the fiscal and
1362+36 qualitative indicators committee DUAB shall assist the school
1363+37 corporation before and during its next collective bargaining period with
1364+38 the goal of meeting or making progress toward the education fund
1365+39 transfer target percentage. If the fiscal and qualitative indicators
1366+40 committee DUAB issues an official recommendation to a school
1367+41 corporation, the school corporation's governing body shall officially
1368+42 acknowledge receipt of the recommendation at its next public meeting
1369+ES 327—LS 7331/DI 120 32
1370+1 and enter into the school corporation governing body's minutes for that
1371+2 meeting acknowledgment of receipt of the recommendation. In
1372+3 addition, the school corporation shall publish the official
1373+4 recommendation on the school corporation's Internet web site. website.
1374+5 (k) The school corporation shall publish the most recent notices
1375+6 from the department, relevant individual reports prepared by the
1376+7 department, explanatory documentation by the school corporation, and
1377+8 official recommendations by the fiscal and qualitative indicators
1378+9 committee DUAB on the school corporation's Internet web site.
1379+10 website.
1380+11 (l) The school corporation may remove the notice, its explanatory
1381+12 documentation, and the fiscal and qualitative indicators committee's
1382+13 DUAB's official recommendation from its Internet web site website if
1383+14 the department determines that the school corporation met its education
1384+15 fund transfer target percentage and is no longer on the excessive
1385+16 education fund transfer list.
1386+17 SECTION 45. IC 34-30-2.1-55, AS ADDED BY P.L.105-2022,
1387+18 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1388+19 UPON PASSAGE]: Sec. 55. IC 6-1.1-20.3-7.5 (Concerning an act or
1389+20 omission of a fiscal management board member, an emergency
1390+21 manager, a chief financial officer, or a chief academic officer within
1391+22 the scope of and arising out of the performance of prescribed duties in
1392+23 a distressed political subdivision).
1393+24 SECTION 46. IC 36-12-2-9, AS AMENDED BY P.L.114-2015,
1394+25 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1395+26 JULY 1, 2023]: Sec. 9. Except as provided in section 15 of this chapter
1396+27 and subject to IC 20-23-12.1-3(c) and section 16 of this chapter, seven
1397+28 (7) members of a library board shall be appointed as follows:
1398+29 (1) One (1) member appointed by the executive of the county in
1399+30 which the library district is located, or if the district is located in
1400+31 more than one (1) county, jointly by the executives of the
1401+32 respective counties.
1402+33 (2) One (1) member appointed by the fiscal body of the county in
1403+34 which the library district is located, or if the district is located in
1404+35 more than one (1) county, jointly by the fiscal bodies of the
1405+36 respective counties.
1406+37 (3) Three (3) members appointed by the school board of the
1407+38 school corporation serving the library district. However, if there
1408+39 is more than one (1) school corporation serving the library
1409+40 district:
1410+41 (A) two (2) members shall be appointed by the school board
1411+42 of the school corporation in which the principal administrative
1412+ES 327—LS 7331/DI 120 33
1413+1 offices of the public library are located; and
1414+2 (B) one (1) member shall be appointed by a majority vote of
1415+3 the presidents of the school boards of the other school
1416+4 corporations.
1417+5 (4) One (1) member appointed under section 10(1), 11(b)(1),
1418+6 12(1), 13(a)(1), 13(b)(1), or 14(1) of this chapter, as applicable.
1419+7 (5) One (1) member appointed under section 10(2), 11(b)(2),
1420+8 12(2), 13(a)(2), 13(b)(2), or 14(2) of this chapter, as applicable.
1421+9 SECTION 47. [EFFECTIVE UPON PASSAGE] (a) As used in this
1422+10 SECTION, "emergency manager" refers to the emergency
1423+11 manager for the Gary School Corporation appointed under
1424+12 IC 6-1.1-20.3-7.5.
1425+13 (b) If approved by the distressed unit appeal board, the rainy
1426+14 day fund transfer limitations under IC 36-1-8-5.1(d)(2)(B)(ii) and
1427+15 IC 36-1-8-5.1(d)(2)(B)(iii) do not apply to the emergency manager.
1428+16 (c) This SECTION expires July 1, 2024.
1429+17 SECTION 48. [EFFECTIVE UPON PASSAGE] (a) As used in this
1430+18 SECTION, "advisory board" refers to the Gary Community
1431+19 School Corporation advisory board established under
1432+20 IC 20-23-12-3, before its repeal by this act.
1433+21 (b) As used in this SECTION, "governing body" refers to the
1434+22 governing body appointed by the secretary of education under
1435+23 IC 20-23-12.1-2, as added by this act.
1436+24 (c) The terms of the members of the advisory board expire upon
1437+25 passage of this act.
1438+26 (d) The term of the member appointed to the fiscal management
1439+27 board under IC 6-1.1-20.3-6.8(g)(1), before its amendment by this
1440+28 act, expires upon passage of this act.
1441+29 (e) Before July 1, 2023, the secretary of education shall appoint
1442+30 the initial members to the governing body in the manner
1443+31 prescribed by IC 20-23-12.1-2, as added by this act.
1444+32 (f) The initial terms for members of the governing body
1445+33 appointed as described in subsection (e) begin July 1, 2023.
1446+34 (g) This SECTION expires July 1, 2026.
1447+35 SECTION 49. An emergency is declared for this act.
1448+ES 327—LS 7331/DI 120 34
1449+COMMITTEE REPORT
1450+Madam President: The Senate Committee on Appropriations, to
1451+which was referred Senate Bill No. 327, has had the same under
1452+consideration and begs leave to report the same back to the Senate with
1453+the recommendation that said bill be AMENDED as follows:
1454+Page 17, between lines 1 and 2, begin a new paragraph and insert:
1455+"Sec. 0.5. The general assembly recognizes the following:
1456+(1) The Gary Community School Corporation has achieved
1457+financial and operational stability.
1458+(2) The Gary Community School Corporation is expected to
1459+meet the conditions for termination of distressed status in the
1460+near future.
1461+(3) The Gary Community School Corporation no longer
1462+requires special state oversight by the distressed unit appeal
1463+board.
1464+(4) That it is appropriate to transition to a new governing
1465+body.
1466+(5) The state should continue to monitor and evaluate the
1467+effectiveness of the governance structure.".
1468+Page 17, delete lines 24 through 25, begin a new paragraph and
1469+insert:
1470+"(c) The following apply to four (4) of the members appointed
1471+under subsection (a):
1472+(1) At least two (2) of the members must be residents of the
1473+city of Gary.
1474+(2) At least two (2) of the members must be residents of:
1475+(A) the city of Gary; or
1476+(B) Lake County.".
1477+Page 17, line 27, delete "education." and insert "education. The
1478+executive of the city of Gary may at any time provide the secretary
1479+of education with a new membership recommendation under
1480+subsection (a)(2), and the secretary of education may at any time
1481+replace a member appointed under subsection (a)(2).".
1482+Page 18, between lines 24 and 25, begin a new paragraph and insert:
1483+"Sec. 6. Before July 1, 2026, the governing body shall also
1484+submit a report to the distressed unit appeal board and the budget
1485+committee. The report required by this section must address each
1486+of the following topics:
1487+(1) Finances.
1488+(2) Operations.
1489+(3) Academics.
1490+(4) The effectiveness of the governance structure.
1491+ES 327—LS 7331/DI 120 35
1492+The distressed unit appeal board shall present the topics addressed
1493+by the report to the budget committee before November 1, 2026.".
1494+and when so amended that said bill do pass.
1495+(Reference is to SB 327 as introduced.)
1496+MISHLER, Chairperson
1497+Committee Vote: Yeas 10, Nays 4.
1498+_____
1499+COMMITTEE REPORT
1500+Mr. Speaker: Your Committee on Ways and Means, to which was
1501+referred Senate Bill 327, has had the same under consideration and
1502+begs leave to report the same back to the House with the
1503+recommendation that said bill be amended as follows:
1504+Page 4, between lines 30 and 31, begin a new paragraph and insert:
1505+"SECTION 4. IC 5-13-7-8, AS ADDED BY P.L.101-2019,
1491506 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1501507 UPON PASSAGE]: Sec. 8. (a) During the annual meeting required by
1511508 section 6 of this chapter, the superintendent of a school corporation
1521509 shall submit a written report to the local board of finance for the school
1531510 corporation. The report must assess the financial condition of the
1541511 school corporation using the fiscal and qualitative indicators
1551512 determined under IC 20-19-7-4 by the fiscal and qualitative indicators
1561513 committee. distressed unit appeal board established by
1571514 IC 6-1.1-20.3-4.
1581515 (b) The local board of finance shall review the report made under
1591516 subsection (a).
1601517 (c) The superintendent of a school corporation may delegate the
1611518 duty to submit a report under subsection (a) to an employee or
1621519 representative of the school corporation.
1631520 SECTION 5. IC 6-1.1-20.3-5, AS AMENDED BY
1641521 P.L.213-2018(ss), SECTION 4, IS AMENDED TO READ AS
1651522 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5. (a) The board may
166-SEA 327 — Concur 5
1671523 employ an executive director staff who shall serve at the pleasure of
1681524 the board and carry out the administrative responsibilities assigned by
1691525 the board. The board may delegate a specific duty, authority, or
1701526 responsibility assigned to the board under this chapter to the executive
1711527 director. staff.
1528+ES 327—LS 7331/DI 120 36
1721529 (b) The department of local government finance shall provide the
1731530 board with the staff and assistance that the board reasonably requires.
1741531 (c) The department of local government finance shall may provide
1751532 from the department's budget funding to support the board's duties
1761533 under this chapter.
1771534 (d) The board may contract with accountants, financial experts, and
1781535 other advisors and consultants as necessary to carry out the board's
1791536 duties under this chapter.
1801537 (e) The board may adopt rules to implement the board's duties,
1811538 authorities, or responsibilities, including those in this chapter and those
182-in IC 20-19-7.
183-SECTION 6. IC 6-1.1-20.3-6.8, AS AMENDED BY P.L.43-2021,
184-SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
185-JULY 1, 2023]: Sec. 6.8. (a) This section applies only to the Gary
186-Community School Corporation.
187-(b) The general assembly finds that the provisions of this section:
188-(1) are necessary to address the unique issues faced by the Gary
189-Community School Corporation; and
190-(2) are not precedent for and may not be appropriate for
191-addressing issues faced by other school corporations.
192-(c) As used in this section, the following definitions apply:
193-(1) "Chief academic officer" means the chief academic officer
194-appointed under subsection (j). (h).
195-(2) "Chief financial officer" means the chief financial officer
196-appointed under subsection (i). (g).
197-(3) "School corporation" refers to the Gary Community School
198-Corporation.
199-(d) The Gary Community School Corporation is designated as a
200-distressed political subdivision for purposes of this chapter until the
201-school corporation's designation as a distressed political subdivision is
202-terminated as provided in section 13(b) of this chapter. This
203-designation as a distressed political subdivision is effective regardless
204-of whether the school corporation has submitted a petition requesting
205-to be designated as a distressed political subdivision. Until the school
206-corporation's designation as a distressed political subdivision is
207-terminated as provided in section 13(b) of this chapter, the Gary
208-Community School Corporation advisory board may not hold a public
209-SEA 327 — Concur 6
210-meeting more often than once every three (3) months. This limit on the
211-number of meetings of the advisory board does not apply to the
212-emergency manager. The emergency manager shall hold a monthly
213-forum to provide an update on the Gary Community School
214-Corporation within the school district that is open to the general public.
215-During the period that the Gary Community School Corporation is
216-designated as a distressed political subdivision, the advisory board may
217-vote to:
218-(1) fill vacancies;
219-(2) select officers; or
220-(3) make appointments;
221-of the advisory board, and to present awards, recognition, and
222-certificates to employees or supporters of the school corporation.
223-(e) Until the school corporation's designation as a distressed
224-political subdivision is terminated as provided in section 13(b) of this
225-chapter, the following apply to the emergency manager appointed
226-under section 7.5 of this chapter for the school corporation:
227-(1) The emergency manager has the powers and duties specified
228-in this chapter.
229-(2) The emergency manager shall consider recommendations
230-from the fiscal management board and the advisory board, but the
231-emergency manager has full responsibility and authority related
232-to financial and academic matters of the school corporation, and
233-the emergency manager may act, as specified in this chapter, on
234-these financial and academic matters without the approval of the
235-fiscal management board or the advisory board.
236-(3) (2) Notwithstanding section 7.5(d) of this chapter, the
237-distressed unit appeal board shall:
238-(A) determine the compensation of the emergency manager;
239-chief financial officer, and chief academic officer; and
240-(B) subject to subsections (i) (g) and (j), (h), pay the
241-emergency manager's chief financial officer's, and chief
242-academic officer's compensation and reimburse the emergency
243-manager chief financial officer, and chief academic officer for
244-actual and necessary expenses from funds appropriated to the
245-distressed unit appeal board.
246-(4) (3) Before appointing the emergency manager, the distressed
247-unit appeal board shall interview at least one (1) resident of the
248-city of Gary as a candidate for the position. If the distressed unit
249-appeal board is not able to interview a resident of the city of Gary
250-as a candidate for the position, the distressed unit appeal board
251-shall interview at least one (1) individual who is a resident of
252-SEA 327 — Concur 7
253-Lake County or northwest Indiana as a candidate for the position.
254-The appointment of the emergency manager for the school corporation
255-is terminated on the date the school corporation's designation as a
256-distressed political subdivision is terminated as provided in section
257-13(b) of this chapter.
258-(f) In addition to any other actions that the distressed unit appeal
259-board may take under this chapter concerning a distressed political
260-subdivision, for a distressed school corporation, the distressed unit
261-appeal board may also do any of the following:
262-(1) The distressed unit appeal board may delay or suspend, for a
263-period determined by the board, any payments of principal or
264-interest, or both, that would otherwise be due from the school
265-corporation on loans or advances from the common school fund.
266-(2) The distressed unit appeal board may recommend to the state
267-board of finance that the state board of finance make an interest
268-free loan to the school corporation from the common school fund.
269-The distressed unit appeal board shall determine the payment
270-schedule and the commencement date for the loan. If the
271-distressed unit appeal board makes a recommendation that such
272-a loan be made, the state board of finance may, notwithstanding
273-IC 20-49, make such a loan for a term of not more than ten (10)
274-years.
275-(3) The distressed unit appeal board may establish benchmarks of
276-financial improvement for the school corporation.
277-(4) The distressed unit appeal board may provide a grant or grants
278-to the school corporation from funds appropriated to the
279-distressed unit appeal board, in amounts determined by the
280-distressed unit appeal board, to assist the school corporation in
281-overcoming short term financial problems.
282-(5) The distressed unit appeal board may make a recommendation
283-to the general assembly concerning the possible restructuring of
284-advances made to the school corporation from the common school
285-fund, including forgiveness of principal and interest on those
286-advances.
287-(g) The fiscal management board is established. The fiscal
288-management board consists of the following members:
289-(1) One (1) member appointed by the advisory board.
290-(2) One (1) member appointed by the mayor of the city of Gary.
291-(3) One (1) member, who must have experience working with or
292-for an urban school corporation, appointed by the secretary of
293-education.
294-(4) One (1) member, who must have experience working with or
295-SEA 327 — Concur 8
296-for an urban school corporation, appointed by the state board of
297-education.
298-(h) The following apply to the fiscal management board and to the
299-members of the fiscal management board:
300-(1) The term of office of a member of the fiscal management
301-board is four (4) years, beginning on the date of appointment. A
302-member of the fiscal management board may be reappointed to
303-the fiscal management board. A member of the fiscal
304-management board may be removed for cause by the appointing
305-authority.
306-(2) A member of the fiscal management board must have the
307-following:
308-(A) At least three (3) years experience in financial
309-management.
310-(B) A meaningful background and work experience in finance
311-and business.
312-(C) An understanding of government contracts.
313-(D) Knowledge and experience in organizational effectiveness,
314-operations management, and implementing best practices.
315-(E) Experience in budget development and oversight.
316-(F) A demonstrated commitment to high professional and
317-ethical standards and a diverse workplace.
318-(G) An understanding of tax and other compliance
319-implications.
320-(3) A member of the advisory board may not serve as a member
321-of the fiscal management board.
322-(4) The fiscal management board:
323-(A) shall make recommendations to the emergency manager;
324-and
325-(B) shall advise the emergency manager as requested by the
326-emergency manager.
327-(5) The members of the fiscal management board are not entitled
328-to any compensation for their service on the fiscal management
329-board.
330-(6) The fiscal management board is abolished, and the terms of
331-the members of the fiscal management board are terminated, on
332-the date the school corporation's designation as a distressed
333-political subdivision is terminated as provided in section 13(b) of
334-this chapter.
335-(7) Under the supervision of the emergency manager, the fiscal
336-management board shall serve as a liaison to and shall work
337-jointly with the distressed unit appeal board, the mayor of the city
338-SEA 327 — Concur 9
339-of Gary, and the department of education to develop a transition
340-plan to address issues or questions related to:
341-(A) the designation of the school corporation as a distressed
342-political subdivision and the transfer of powers and duties to
343-the emergency manager under this chapter; and
344-(B) the potential impact of the transition on the community
345-and the school corporation.
346-(8) Under the supervision of the emergency manager, the fiscal
347-management board shall work jointly with the distressed unit
348-appeal board, the mayor of the city of Gary, and the department
349-of education to provide information on a regular basis to parents,
350-students, employees of the school corporation, and the public on
351-the status of the transition.
352-(i) (g) The emergency manager shall employ a chief financial officer
353-for the school corporation. The chief financial officer is an employee
354-of the school corporation. The chief financial officer shall report to the
355-emergency manager and shall assist the emergency manager appointed
356-for the school corporation and the fiscal management board in carrying
357-out the day to day financial operations of the school corporation. Before
358-July 1, 2019, the compensation of the chief financial officer shall be
359-determined by the distressed unit appeal board. Before July 1, 2019, the
360-compensation of the chief financial officer shall be paid from the funds
361-appropriated to the distressed unit appeal board. After June 30, 2019,
362-The compensation of the chief financial officer shall be determined by
363-and paid by the school corporation. The chief financial officer:
364-(1) must possess, through both education and experience, an
365-understanding of finance and financial management; and
366-(2) must possess any other experience and must meet any other
367-requirements as required by the distressed unit appeal board to
368-ensure that the chief financial officer is qualified to carry out the
369-financial restructuring of the school corporation.
370-Before employing a chief financial officer under this subsection, the
371-emergency manager shall interview at least one (1) resident of the city
372-of Gary as a candidate for the position. If the emergency manager is not
373-able to interview a resident of the city of Gary as a candidate for the
374-position, the emergency manager shall interview at least one (1)
375-individual who is a resident of Lake County or northwest Indiana as a
376-candidate for the position.
377-(j) (h) The emergency manager shall employ a chief academic
378-officer for the school corporation, after consultation with the
379-department of education, who must have experience working with or
380-for an urban school corporation. The chief academic officer is an
381-SEA 327 — Concur 10
382-employee of the school corporation. The chief academic officer shall
383-report to the emergency manager and shall assist the emergency
384-manager appointed for the school corporation and the fiscal
385-management board in carrying out the academic matters of the school
386-corporation. Before July 1, 2019, the compensation of the chief
387-academic officer shall be determined by the distressed unit appeal
388-board. Before July 1, 2019, the compensation of the chief academic
389-officer shall be paid from the funds appropriated to the distressed unit
390-appeal board. After June 30, 2019, The compensation of the chief
391-academic officer shall be determined by and paid by the school
392-corporation. The chief academic officer must:
393-(1) hold a valid license to teach in a public school under
394-IC 20-28-5;
395-(2) possess, through both education and experience, an
396-understanding of curriculum and academics; and
397-(3) possess any other experience and meet any other requirements
398-as required by the distressed unit appeal board to ensure that the
399-chief academic officer is qualified to carry out the academic goals
400-of the school corporation.
401-Before employing a chief academic officer under this subsection, the
402-emergency manager shall interview at least one (1) resident of the city
403-of Gary as a candidate for the position. If the emergency manager is not
404-able to interview a resident of the city of Gary as a candidate for the
405-position, the emergency manager shall interview at least one (1)
406-individual who is a resident of Lake County or northwest Indiana as a
407-candidate for the position.
408-(k) (i) The chief financial officer and chief academic officer shall
409-assist the emergency manager in carrying out the emergency manager's
410-duties under this chapter.
411-(l) (j) The annual budget adopted by the emergency manager for the
412-school corporation must dedicate a significant part of the school
413-corporation's budget to eliminating the school corporation's outstanding
414-financial obligations. The emergency manager shall attempt to
415-negotiate with the creditors of the school corporation to establish a plan
416-specifying the schedule for paying each creditor. The emergency
417-manager shall submit the plan to the distressed unit appeal board for
418-approval. The distressed unit appeal board must:
419-(1) review the plan submitted by the emergency manager; and
420-(2) not later than sixty (60) days after the plan is submitted,
421-either:
422-(A) approve the plan as submitted by the emergency manager;
423-or
424-SEA 327 — Concur 11
425-(B) modify the plan as submitted by the emergency manager
426-and then approve the modified plan.
427-(m) (k) The emergency manager shall consider any
428-recommendations from the fiscal management board, the advisory
429-board, and the mayor of the city of Gary in developing the school
430-corporation's annual budget. The distressed unit appeal board must
431-review and approve the school corporation's annual budget that is
432-proposed by the emergency manager. When the emergency manager
433-submits the school corporation's proposed annual budget to the
434-distressed unit appeal board, the emergency manager shall provide
435-copies of the proposed annual budget to the fiscal management board
436-and the advisory board.
437-(n) (l) After considering any recommendations from the fiscal
438-management board, the advisory board, and the mayor of the city of
439-Gary, the emergency manager shall do the following:
440-(1) Conduct a financial and compliance audit of the operations of
441-the school corporation.
442-(2) Develop a written financial plan for the school corporation.
443-The object of the plan must be to achieve financial stability for
444-the school corporation, and the plan must include provisions for
445-paying all of the school corporation's outstanding obligations and
446-for paying all future obligations of the school corporation
447-(including any federal, state, or local taxes or assessments) in a
448-timely manner.
449-(o) (m) In addition to the report required by section 8.5(c)(5) of this
450-chapter, the emergency manager, the chief financial officer, and the
451-chief academic officer shall report quarterly to the distressed unit
452-appeal board in a format specified by the distressed unit appeal board.
453-The report must include:
454-(1) information concerning the actions that the school corporation
455-is taking to improve the financial condition of the school
456-corporation; and
457-(2) any other information required by the distressed unit appeal
458-board.
459-The emergency manager shall report more frequently than quarterly if
460-requested by the distressed unit appeal board. The emergency manager
461-shall provide copies of the report to the fiscal management board, the
462-advisory board, and the mayor of the city of Gary. The emergency
463-manager shall present each report at a public meeting of the fiscal
464-management board.
465-(p) (n) The school corporation shall do the following:
466-(1) Publish a copy of each report under subsection (o) (m) on the
467-SEA 327 — Concur 12
468-school corporation's Internet web site, website, along with a link
469-to the main page of the Indiana transparency Internet web site
470-website established under IC 5-14-3.7 to provide access to
471-financial data for local schools.
472-(2) Make copies of each report available free of charge to the
473-public upon request.
474-(3) Provide copies of each report to the mayor of the city of Gary.
475-The mayor shall make copies of the reports available free of
476-charge to the public upon request.
477-(q) (o) The chief academic officer shall develop an education plan
478-to provide academic services to students in the school corporation and
479-to achieve academic progress. The education plan must include at least
480-the following components:
481-(1) An academic program designed to meet Indiana's academic
482-standards and to assist students in meeting those academic
483-standards.
484-(2) A plan to improve the academic performance of all students,
485-including improvement in the performance of students on
486-standardized tests.
487-(3) A plan to engage parents in school performance and school
488-activities, including regular meetings at each school involving
489-administrators, teachers, parents, and interested members of the
490-community.
491-(4) A plan to implement performance standards that will attract
492-students and families to the school corporation.
493-(5) A plan specifying how the school corporation will work
494-directly with the city of Gary:
495-(A) to make the schools a successful component of life within
496-the city; and
497-(B) to develop a sense of pride and progress in the operations
498-and accomplishments of the school corporation.
499-The chief financial officer and the chief academic officer shall submit
500-a report to the advisory board each quarter. The chief financial officer
501-and chief academic officer shall meet at least quarterly with the
502-executive committee of the bargaining unit to inform the executive
503-committee of the academic progress of the school corporation.
504-SECTION 7. IC 6-1.1-20.3-7.1 IS REPEALED [EFFECTIVE JULY
505-1, 2023]. Sec. 7.1. (a) This section applies only to the Muncie
1539+in IC 20-19-7.".
1540+Page 12, between lines 8 and 9, begin a new paragraph and insert:
1541+"SECTION 7. IC 6-1.1-20.3-7.1 IS REPEALED [EFFECTIVE
1542+JULY 1, 2023]. Sec. 7.1. (a) This section applies only to the Muncie
5061543 Community Schools.
5071544 (b) The general assembly finds that the provisions of this section:
5081545 (1) are necessary to address the unique issues faced by the
5091546 Muncie Community Schools;
510-SEA 327 — Concur 13
5111547 (2) are not precedent for and may not be appropriate for
5121548 addressing issues faced by other school corporations; and
5131549 (3) are consistent with the board designating the Muncie
5141550 Community school corporation as a distressed political
5151551 subdivision effective January 1, 2018.
5161552 (c) Notwithstanding section 7.5(d) of this chapter, the board shall
5171553 determine the compensation of the emergency manager, pay the
5181554 emergency manager's compensation, and reimburse the emergency
5191555 manager for actual and necessary expenses from funds appropriated to
5201556 the board.
5211557 (d) In addition to any other actions that the board may take under
5221558 this chapter concerning a distressed political subdivision, the board
5231559 may recommend, before July 1, 2020, to the state board of finance that
5241560 the state board of finance make an interest free loan to the school
5251561 corporation from the common school fund. The distressed unit appeal
5261562 board shall determine the payment schedule and the commencement
5271563 date for the loan. If the board makes a recommendation that such a loan
5281564 be made, the state board of finance may, notwithstanding IC 20-49,
529-make the loan for a term of not more than ten (10) years.
530-SECTION 8. IC 6-1.1-20.3-7.5, AS AMENDED BY
531-P.L.213-2018(ss), SECTION 8, IS AMENDED TO READ AS
532-FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 7.5. (a) This section
533-does not apply to a school corporation designated before July 1, 2013,
534-as a distressed political subdivision.
535-(b) If a political subdivision is designated as a distressed political
536-subdivision under this chapter, the board shall appoint an emergency
537-manager for the distressed political subdivision. An emergency
538-manager serves at the pleasure of the board. For purposes of IC 34-13,
539-an emergency manager appointed under this section is acting on behalf
540-of the distressed political subdivision and not the state.
541-(c) The chairperson of the board shall oversee the activities of an
542-emergency manager.
543-(d) Except as provided in this chapter, the distressed political
544-subdivision shall pay the emergency manager's compensation and
545-reimburse the emergency manager for actual and necessary expenses.
546-(e) A member of a fiscal management board, An emergency
547-manager, a chief financial officer, or a chief academic officer is
548-immune from civil liability for an act or omission within the scope and
549-arising out of the performance of duties prescribed by the board under
550-this chapter. This subsection does not apply to an act or omission that
551-constitutes gross negligence or willful misconduct.
552-(f) The attorney general shall represent a member of the distressed
553-SEA 327 — Concur 14
554-unit appeal board, a member of a fiscal management board, an
555-emergency manager, a chief financial officer, or a chief academic
556-officer in a legal action arising out of the exercise of powers granted
557-under this chapter, if the member of the distressed unit appeal board,
558-the member of a fiscal management board, emergency manager, chief
559-financial officer, or chief academic officer makes a written request to
560-the attorney general requesting representation. The attorney general
561-may not represent a member of the distressed unit appeal board, a
562-member of a fiscal management board, an emergency manager, a chief
563-financial officer, or a chief academic officer under this subsection if the
564-legal action is initiated or the claim is asserted by the member of the
565-distressed unit appeal board, the member of the fiscal management
566-board, the emergency manager or the distressed political subdivision.
567-If the attorney general represents a member of the distressed unit
568-appeal board, a member of a fiscal management board, an emergency
569-manager, a chief financial officer, or a chief academic officer under this
570-subsection, the member of the distressed unit appeal board, the member
571-of a fiscal management board, emergency manager, chief financial
572-officer, or chief academic officer is entitled to recover attorney's fees
573-from the losing party to the extent the member of the distressed unit
574-appeal board, the member of the fiscal management board, emergency
575-manager, chief financial officer, or chief academic officer prevails. Any
576-attorney's fees recovered shall be deposited in the state general fund.
577-SECTION 9. IC 6-1.1-20.3-15, AS AMENDED BY
1565+make the loan for a term of not more than ten (10) years.".
1566+Page 13, between lines 12 and 13, begin a new paragraph and insert:
1567+"SECTION 9. IC 6-1.1-20.3-15, AS AMENDED BY
5781568 P.L.213-2018(ss), SECTION 13, IS AMENDED TO READ AS
5791569 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) The
5801570 executive of a political subdivision or a majority of the members of the
1571+ES 327—LS 7331/DI 120 37
5811572 fiscal body of a political subdivision may request technical assistance
5821573 from the board in helping prevent the political subdivision from
5831574 becoming a distressed political subdivision. The board, by using the
5841575 health fiscal and qualitative indicators developed under IC 20-19-7 or
5851576 the fiscal health indicators developed under IC 5-14-3.8-8, shall
5861577 determine whether to provide assistance to the political subdivision.
5871578 (b) The board may do any of the following for a political subdivision
5881579 that receives assistance under subsection (a):
5891580 (1) Provide information and technical assistance with respect to
5901581 the data management, accounting, or other aspects of the fiscal
5911582 management of the political subdivision.
5921583 (2) Assist the political subdivision in obtaining assistance from
5931584 state agencies and other resources.
5941585 SECTION 10. IC 20-19-7-2 IS REPEALED [EFFECTIVE JULY 1,
5951586 2023]. Sec. 2. As used in this chapter, "executive director" means the
596-SEA 327 — Concur 15
5971587 executive director of the DUAB.
5981588 SECTION 11. IC 20-19-7-2.3 IS ADDED TO THE INDIANA
5991589 CODE AS A NEW SECTION TO READ AS FOLLOWS
6001590 [EFFECTIVE UPON PASSAGE]: Sec. 2.3. As used in this chapter,
6011591 "public agency" has the meaning set forth in IC 5-14-1.5-2(a).
6021592 SECTION 12. IC 20-19-7-2.5 IS ADDED TO THE INDIANA
6031593 CODE AS A NEW SECTION TO READ AS FOLLOWS
6041594 [EFFECTIVE UPON PASSAGE]: Sec. 2.5. As used in this chapter,
6051595 "public official" means an elected or appointed official in the
6061596 executive, legislative, or judicial branch of the state government or
6071597 a political subdivision, and includes an individual acting on behalf
6081598 of a public employer, whether temporarily or permanently,
6091599 including, but not limited to, members of boards, committees,
6101600 commissions, authorities, and other instrumentalities of the state
6111601 or a political subdivision.
6121602 SECTION 13. IC 20-19-7-3 IS REPEALED [EFFECTIVE UPON
6131603 PASSAGE]. Sec. 3. (a) The fiscal and qualitative indicators committee
6141604 is established to make the following determinations:
6151605 (1) The determination of the fiscal and qualitative indicators to be
6161606 used for evaluating the financial condition of each school
6171607 corporation.
6181608 (2) The determination of the information that is to be presented on
6191609 the DUAB's Internet website or the management performance
6201610 hub's Internet web site in accordance with section 5(c) of this
6211611 chapter.
6221612 (3) The determination of how frequently to update:
6231613 (A) the fiscal and qualitative indicators being used to evaluate
1614+ES 327—LS 7331/DI 120 38
6241615 the financial condition of school corporations; and
6251616 (B) the presentation of information on the DUAB's Internet
6261617 web site or the management performance hub's Internet web
6271618 site in accordance with section 5(c) of this chapter.
6281619 (b) The members of the committee must be employees of, and
6291620 appointed by, each of the following:
6301621 (1) The DUAB.
6311622 (2) The department of education.
6321623 (3) The budget agency.
6331624 (4) The state board of accounts.
6341625 (5) The department of local government finance.
6351626 (6) The management performance hub.
6361627 In addition, a member of the Indiana Association of School Business
6371628 Officials appointed by the Association's board of directors is a member
6381629 of the committee.
639-SEA 327 — Concur 16
6401630 (c) The member appointed by the DUAB is the chairperson of the
6411631 committee.
6421632 (d) Members serve at the pleasure of the appointing authority.
6431633 SECTION 14. IC 20-19-7-4, AS ADDED BY P.L.213-2018(ss),
6441634 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6451635 UPON PASSAGE]: Sec. 4. (a) Subject to review by the state budget
6461636 committee under section 6 of this chapter, the fiscal and qualitative
6471637 indicators committee DUAB shall determine the fiscal and qualitative
6481638 indicators to be used for evaluating the financial condition of each
6491639 school corporation.
6501640 (b) The fiscal indicators under subsection (a) may include the
6511641 following factors:
6521642 Annual capital expenses compared to total capital assets
6531643 Average daily membership (ADM)
6541644 Common school fund loans
6551645 Controlled project fund referendum revenue
6561646 Debt to assessed value and debt to ADM ratios
6571647 Education fund referendum revenue
6581648 Federal revenues
6591649 Fund cash balances by fund and overall
6601650 Fund deficits and surpluses by fund and overall
6611651 Fund deficits and surpluses combining the education and
6621652 operations fund and debt
6631653 Gross expenditures per ADM
6641654 Interfund transfers
6651655 Operating deficit or surplus
6661656 Outstanding debt and annual debt service obligations
1657+ES 327—LS 7331/DI 120 39
6671658 Qualitative indicators as set forth in subsection (c)
6681659 Salaries and benefits
6691660 Seven (7) year trend lines using state fiscal years
6701661 State tuition support
6711662 Any other fiscal indicator determined by the fiscal and qualitative
6721663 indicators committee. DUAB.
6731664 (c) The qualitative indicators under subsection (a) may include the
6741665 following factors:
6751666 Failure to make required contributions or transfers
6761667 Issuance of judgment bonds
6771668 Missed debt payments
6781669 Missed payroll
6791670 Past due vendor payments
6801671 Any findings related to the financial condition of the school
6811672 corporation by the Indiana education employment relations board
682-SEA 327 — Concur 17
6831673 Any other qualitative indicator determined by the fiscal and
6841674 qualitative indicators committee. DUAB.
6851675 SECTION 15. IC 20-19-7-5, AS ADDED BY P.L.213-2018(ss),
6861676 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6871677 UPON PASSAGE]: Sec. 5. (a) Subject to review by the state budget
6881678 committee under section 6 of this chapter, the fiscal and qualitative
6891679 indicators committee DUAB shall prescribe the presentation of the
6901680 information of the fiscal and qualitative indicators used under this
6911681 chapter.
6921682 (b) The information under subsection (a) must be presented in a
6931683 manner that accomplishes the following:
6941684 (1) The information must be conveniently and easily accessed
6951685 from a single Internet web page.
6961686 (2) The information must be viewable in a format commonly
6971687 known as an Internet a dashboard.
6981688 (3) The information must be viewable in graphical form.
6991689 (4) The information must be easily searchable.
7001690 (5) The underlying data must be downloadable in a format that
7011691 can be imported into standard spreadsheet computer software.
7021692 (c) The DUAB shall periodically publish the information under
7031693 subsection (a) on its Internet web site website or the management
7041694 performance hub's Internet web site. website. The management
7051695 performance hub shall assist the DUAB in the development of the
7061696 dashboard for publication.
7071697 SECTION 16. IC 20-19-7-6, AS ADDED BY P.L.213-2018(ss),
7081698 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7091699 UPON PASSAGE]: Sec. 6. (a) Before making a final determination
1700+ES 327—LS 7331/DI 120 40
7101701 under section 4 of this chapter concerning the fiscal and qualitative
7111702 indicators that will be used for evaluating the financial condition of
7121703 school corporations, the fiscal and qualitative indicators committee
7131704 DUAB must present a draft of the proposed fiscal and qualitative
7141705 indicators to the state budget committee for review by the state budget
7151706 committee.
7161707 (b) Before prescribing the requirements under section 5 of this
7171708 chapter for the presentation of the fiscal and qualitative indicators used
7181709 under this chapter, the fiscal and qualitative indicators committee
7191710 DUAB must present a draft of the proposed requirements to the state
7201711 budget committee for review by the state budget committee.
7211712 SECTION 17. IC 20-19-7-7 IS REPEALED [EFFECTIVE UPON
7221713 PASSAGE]. Sec. 7. The fiscal and qualitative indicators committee
7231714 shall before January 1, 2019, publish the fiscal and qualitative
7241715 indicators for each school corporation on the DUAB's Internet web site
725-SEA 327 — Concur 18
7261716 or the management performance hub's Internet web site.
7271717 SECTION 18. IC 20-19-7-8, AS ADDED BY P.L.213-2018(ss),
7281718 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7291719 JULY 1, 2023]: Sec. 8. The DUAB shall may adopt policies and
7301720 procedures that will be used by the DUAB to implement this chapter.
7311721 Policies and procedures adopted under this section may include
7321722 processes that will be used by the DUAB to do the following:
7331723 (1) Identify school corporations that demonstrate signs of
7341724 financial distress.
7351725 (2) Determine when a corrective action plan is necessary for
7361726 a school corporation.
7371727 (3) Determine the conditions that must be satisfied before a
7381728 school corporation:
7391729 (A) will no longer be subject to a corrective action plan;
7401730 and
7411731 (B) will be considered as financially healthy.
7421732 SECTION 19. IC 20-19-7-9 IS REPEALED [EFFECTIVE JULY 1,
7431733 2023]. Sec. 9. The executive director shall present to the state budget
7441734 committee a report concerning the processes that will be used by
7451735 DUAB and the executive director to do the following:
7461736 (1) Identify school corporations that demonstrate signs of
7471737 financial distress.
7481738 (2) Determine when a corrective action plan is necessary for a
7491739 school corporation.
7501740 (3) Determine the conditions that must be satisfied before a
7511741 school corporation:
7521742 (A) will no longer be subject to a corrective action plan; and
1743+ES 327—LS 7331/DI 120 41
7531744 (B) will be considered as financially healthy.
7541745 SECTION 20. IC 20-19-7-10, AS ADDED BY P.L.213-2018(ss),
7551746 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7561747 JULY 1, 2023]: Sec. 10. Before June 1, 2019, the executive director
7571748 shall prepare and submit to the DUAB an initial report identifying
7581749 those school corporations for which a corrective action plan may be
7591750 appropriate, based on the fiscal and qualitative indicators. The
7601751 executive director DUAB shall on a schedule determined by the DUAB
7611752 submit subsequent periodically prepare reports identifying those
7621753 school corporations for which a corrective action plan may be
7631754 appropriate, based on the fiscal and qualitative indicators. The DUAB
7641755 shall make a determination concerning which school corporations the
7651756 executive director DUAB shall contact for purposes of conducting an
7661757 assessment under section 11 of this chapter.
7671758 SECTION 21. IC 20-19-7-11, AS ADDED BY P.L.213-2018(ss),
768-SEA 327 — Concur 19
7691759 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7701760 JULY 1, 2023]: Sec. 11. (a) The executive director DUAB shall do the
7711761 following:
7721762 (1) Contact the governing body and the superintendent of each
7731763 school corporation for which the distressed unit appeal board
7741764 DUAB makes a determination under section 10 of this chapter.
7751765 (2) Carry out an assessment of the financial condition of each
7761766 school corporation for which the DUAB makes a determination
7771767 under section 10 of this chapter.
7781768 (b) A school corporation for which an assessment of financial
7791769 condition is carried out under this section shall:
7801770 (1) cooperate with the executive director DUAB as the executive
7811771 director DUAB carries out the assessment of the school
7821772 corporation's financial condition; and
7831773 (2) provide any information and documents requested by the
7841774 executive director. DUAB.
7851775 SECTION 22. IC 20-19-7-12, AS ADDED BY P.L.213-2018(ss),
7861776 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7871777 JULY 1, 2023]: Sec. 12. (a) After reviewing:
7881778 (1) the assessment of a school corporation's financial condition
7891779 made by the executive director under section 11 of this chapter;
7901780 and
7911781 (2) the school corporation's fiscal and qualitative indicators;
7921782 the DUAB shall make a determination of whether a corrective action
7931783 plan is necessary for the school corporation.
7941784 (b) If the DUAB makes a determination that a corrective action plan
7951785 is necessary for the school corporation, the DUAB shall notify the
1786+ES 327—LS 7331/DI 120 42
7961787 governing body and the superintendent of the school corporation that
7971788 the school corporation must develop and submit to the DUAB a
7981789 corrective action plan for the school corporation within ninety (90)
7991790 days after the notice is provided.
8001791 (c) If a school corporation does not prepare and submit a corrective
8011792 action plan to the DUAB within ninety (90) days after the notice is
8021793 provided under subsection (b), the DUAB shall place the school
8031794 corporation on the watch list under section 17 of this chapter.
8041795 SECTION 23. IC 20-19-7-13, AS ADDED BY P.L.213-2018(ss),
8051796 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8061797 JULY 1, 2023]: Sec. 13. (a) Upon the request of a school corporation
8071798 that is required to submit a corrective action plan, the executive
8081799 director DUAB and other appropriate state departments and agencies
8091800 shall:
8101801 (1) assist the school corporation in developing the corrective
811-SEA 327 — Concur 20
8121802 action plan; and
8131803 (2) provide technical assistance to the school corporation.
8141804 (b) The DUAB and any other state departments or agencies that
8151805 provide assistance to a school corporation under this section are not
8161806 responsible for implementing the corrective action plan.
8171807 SECTION 24. IC 20-19-7-14, AS ADDED BY P.L.213-2018(ss),
8181808 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8191809 UPON PASSAGE]: Sec. 14. The superintendent of a school
8201810 corporation that is required to submit a corrective action plan shall
8211811 update the governing body of the school corporation, as requested by
8221812 the governing body, concerning the implementation of the corrective
8231813 action plan submitted to the DUAB. The governing body of a school
8241814 corporation that is required to prepare a corrective action plan
8251815 may meet in executive session to receive the updates of the
8261816 superintendent. discuss all aspects of the corrective action plan,
8271817 including voting to approve a corrective action plan or
8281818 modifications under section 16 of this chapter.
8291819 SECTION 25. IC 20-19-7-15, AS ADDED BY P.L.213-2018(ss),
8301820 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8311821 JULY 1, 2023]: Sec. 15. The executive director DUAB shall meet at
8321822 least once every ninety (90) days with the school corporation's
8331823 superintendent, the president of the school corporation's governing
8341824 body, and (as necessary) other administrators of the school corporation
8351825 to discuss the corrective action plan and the school corporation's
8361826 progress in implementing the corrective action plan.
8371827 SECTION 26. IC 20-19-7-16, AS ADDED BY P.L.213-2018(ss),
8381828 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1829+ES 327—LS 7331/DI 120 43
8391830 UPON PASSAGE]: Sec. 16. The following apply after a corrective
8401831 action plan is submitted to the DUAB:
8411832 (1) The DUAB may modify the corrective action plan at any time
8421833 if the DUAB determines that the modification is necessary.
8431834 (2) The superintendent or the governing body of the school
8441835 corporation may request the DUAB to modify the corrective
8451836 action plan, and the DUAB may make the requested modification.
8461837 If the superintendent of the school corporation makes the request,
8471838 the superintendent must notify the governing body of the school
8481839 corporation of the requested modification.
8491840 SECTION 27. IC 20-19-7-17, AS ADDED BY P.L.213-2018(ss),
8501841 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8511842 JULY 1, 2023]: Sec. 17. (a) The DUAB shall place the school
8521843 corporation on a watch list if:
8531844 (1) the executive director DUAB determines that the school
854-SEA 327 — Concur 21
8551845 corporation is not in compliance with the school corporation's
8561846 corrective action plan;
8571847 (2) the executive director DUAB notifies the superintendent and
8581848 governing body of the school corporation that:
8591849 (A) the school corporation is not in compliance with the school
8601850 corporation's corrective action plan; and
8611851 (B) the school corporation must achieve compliance with the
8621852 school corporation's corrective action plan within a period
8631853 specified by the executive director; DUAB; and
8641854 (3) the executive director DUAB determines that the school
8651855 corporation has not achieved compliance with the school
8661856 corporation's corrective action plan within the period specified in
8671857 subdivision (2).
8681858 (b) The DUAB shall place a school corporation on the watch list if
8691859 required by section 12(c) of this chapter.
8701860 (c) If the DUAB places a school corporation on the watch list under
8711861 this section, the executive director DUAB shall notify:
8721862 (1) the superintendent and governing body of the school
8731863 corporation; and
8741864 (2) the budget director.
8751865 (d) The state budget committee shall review the school corporation's
8761866 placement on the watch list.
8771867 SECTION 28. IC 20-19-7-18, AS ADDED BY P.L.213-2018(ss),
8781868 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8791869 UPON PASSAGE]: Sec. 18. (a) Notwithstanding any other law, all
8801870 reports, correspondence, and other records related to a school
8811871 corporation's corrective action plan, including the initial report reports
1872+ES 327—LS 7331/DI 120 44
8821873 prepared by the executive director DUAB under section 10 of this
8831874 chapter and an assessment prepared under section 11 of this chapter,
8841875 and the placement of a school corporation on the watch list are
8851876 excepted from public disclosure under IC 5-14-3 or any other law at the
8861877 discretion of the DUAB or the school corporation unless and until the
8871878 school corporation is placed on the watch list and the state budget
8881879 committee has reviewed the school corporation's placement on the
8891880 watch list. If the DUAB or a school corporation discloses any reports,
8901881 correspondence, and other records related to a school corporation's
8911882 corrective action plan, including the initial report a report prepared by
8921883 the executive director DUAB under section 10 of this chapter and an
8931884 assessment prepared under section 11 of this chapter, to other state
8941885 agencies or officials public agencies or public officials prior to a
8951886 school corporation's placement on the watch list and review by the state
8961887 budget committee, these public agencies or public officials may not
897-SEA 327 — Concur 22
8981888 disclose the reports, correspondence, and other records, or the
8991889 information contained in those reports, correspondence, and other
9001890 records without the permission of the DUAB or the school
9011891 corporation.
9021892 (b) If the DUAB or a school corporation discloses to public
9031893 agencies or public officials that the school corporation was
9041894 required to submit a corrective action plan, the public agencies or
9051895 public officials may not disclose that information without the
9061896 permission of the DUAB or the school corporation.
9071897 (b) (c) The DUAB shall hold executive sessions to consider reports
9081898 related to a school corporation's corrective action plan, including the
9091899 initial report reports prepared by the executive director DUAB under
9101900 section 10 of this chapter and an assessment prepared under section 11
9111901 of this chapter, and to make final determinations required under
9121902 sections 10, 12, 16, and 17 of this chapter. The final determinations
9131903 required under sections 10, 12, 16, and 17 of this chapter shall be
9141904 made in executive session.
9151905 SECTION 29. IC 20-19-7-19, AS ADDED BY P.L.213-2018(ss),
9161906 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9171907 UPON PASSAGE]: Sec. 19. (a) The fiscal and qualitative indicators
9181908 committee shall DUAB may do the following each year:
9191909 (1) Review the fiscal and qualitative indicators used under this
9201910 chapter to evaluate the financial condition of school corporations.
9211911 (2) Determine if it is appropriate to change one (1) or more of the
9221912 fiscal and qualitative indicators.
9231913 (b) Before the fiscal and qualitative indicators committee DUAB
9241914 may change a fiscal or qualitative indicator, the fiscal and qualitative
1915+ES 327—LS 7331/DI 120 45
9251916 indicators committee DUAB must first submit a report in an electronic
9261917 format to the state budget committee specifying the proposed change
9271918 in the fiscal or qualitative indicator.
9281919 SECTION 30. IC 20-19-7-20, AS ADDED BY P.L.213-2018(ss),
9291920 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9301921 JULY 1, 2023]: Sec. 20. (a) The DUAB shall may do the following
9311922 each year:
9321923 (1) Review policies and procedures adopted under section 8 of
9331924 this chapter by the DUAB.
9341925 (2) Determine if it is appropriate to change one (1) or more of
9351926 those policies and procedures.
9361927 (b) Before the DUAB may change a policy or procedure adopted
9371928 under section 8 of this chapter, the DUAB must first submit a report in
9381929 an electronic format to the state budget committee specifying the
939-proposed change in the policy or procedure.
940-SEA 327 — Concur 23
941-SECTION 31. IC 20-23-8-5, AS AMENDED BY P.L.233-2015,
942-SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
943-JULY 1, 2023]: Sec. 5. As used in this chapter, "school corporation"
944-means a local public school corporation established under the laws of
945-Indiana. The term does not include a school corporation covered by
946-IC 20-23-12, IC 20-23-12.1, IC 20-23-17, or IC 20-23-17.2.
947-SECTION 32. IC 20-23-12-2, AS AMENDED BY P.L.104-2022,
948-SECTION 123, IS AMENDED TO READ AS FOLLOWS
949-[EFFECTIVE UPON PASSAGE]: Sec. 2. As used in this chapter,
950-"school corporation" means a school corporation that is located in a city
951-having a population of more than sixty-nine thousand (69,000) and less
952-than sixty-nine thousand five hundred (69,500). was designated as a
953-distressed political subdivision in 2017 under IC 6-1.1-20.3-6.8(d).
954-SECTION 33. IC 20-23-12-3, AS AMENDED BY
955-P.L.213-2018(ss), SECTION 16, IS AMENDED TO READ AS
956-FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The
957-emergency manager appointed by the distressed unit appeal board
958-under IC 6-1.1-20.3 shall act as the governing body of the school
959-corporation and has the powers set forth in IC 6-1.1-20.3-8.5, including
960-the powers and duties of the governing body of the school corporation
961-until the school corporation's status as a distressed political
962-subdivision is terminated under IC 6-1.1-20.3-13(b). The school
963-corporation shall also have an advisory board that consists of seven (7)
964-members elected as follows:
965-(1) On a nonpartisan basis.
966-(2) In a general election in the county.
967-The advisory board is created to provide nonbinding recommendations
968-to the emergency manager.
969-(b) Six (6) of the members shall be elected from the school districts
970-drawn under section 4 of this chapter. Each member:
971-(1) is elected from the school district in which the member
972-resides; and
973-(2) upon election and in conducting the business of the advisory
974-board, represents the interests of the entire school corporation.
975-(c) One (1) of the members elected:
976-(1) is the at-large member of the advisory board;
977-(2) may reside in any of the districts drawn under section 4 of this
978-chapter; and
979-(3) upon election and in conducting the business of the advisory
980-board, represents the interests of the entire school corporation.
981-(d) A per diem may not be paid to a member.
982-(e) The advisory board may hold a public meeting subject to the
983-SEA 327 — Concur 24
984-limits on the number of meetings set forth in IC 6-1.1-20.3-6.8(d). The
985-advisory board is subject to IC 5-14-1.5 (the open door law) for these
986-meetings. The advisory board may hold additional meetings that are
987-authorized as executive sessions under IC 5-14-1.5 (the open door law)
988-as provided in IC 5-14-1.5-6.1. The advisory board is subject to the
989-public notice requirements of IC 5-14-1.5 (the open door law) for these
990-additional meetings. The records of the advisory board are subject to
991-IC 5-14-3 (access to public records).
992-SECTION 34. IC 20-23-12-4 IS REPEALED [EFFECTIVE UPON
993-PASSAGE]. Sec. 4. The districts are drawn on the same lines as the
994-common council districts referred to in IC 36-4-6-3.
995-SECTION 35. IC 20-23-12-5 IS REPEALED [EFFECTIVE UPON
996-PASSAGE]. Sec. 5. (a) The six (6) members who are elected for a
997-position on the advisory board described under section 3(b) of this
998-chapter are determined as follows:
999-(1) Each prospective candidate must file a nomination petition
1000-with the board of elections and registration not earlier than one
1001-hundred four (104) days and not later than noon seventy-four (74)
1002-days before the election at which the members are to be elected
1003-that includes the following information:
1004-(A) The name of the prospective candidate.
1005-(B) The district in which the prospective candidate resides.
1006-(C) The signatures of at least one hundred (100) registered
1007-voters residing in the school corporation.
1008-(D) The fact that the prospective candidate is running for a
1009-district position.
1010-(E) A certification that the prospective candidate meets the
1011-qualifications for candidacy imposed by this chapter.
1012-(2) Only eligible voters residing in the district may vote for a
1013-candidate.
1014-(3) The candidate within each district who receives the greatest
1015-number of votes in the district is elected.
1016-(b) The at-large member elected under section 3(c) of this chapter
1017-is determined as follows:
1018-(1) Each prospective candidate must file a nomination petition
1019-with the clerk of the circuit court at least seventy-four (74) days
1020-before the election at which the at-large member is to be elected.
1021-The petition must include the following information:
1022-(A) The name of the prospective candidate.
1023-(B) The signatures of at least one hundred (100) registered
1024-voters residing within the school corporation.
1025-(C) The fact that the prospective candidate is running for the
1026-SEA 327 — Concur 25
1027-at-large position on the advisory board.
1028-(D) A certification that the prospective candidate meets the
1029-qualifications for candidacy imposed by this chapter.
1030-(2) Only eligible voters residing in the school corporation may
1031-vote for a candidate.
1032-(3) The candidate who:
1033-(A) runs for the at-large position on the advisory board; and
1034-(B) receives the greatest number of votes in the school
1035-corporation;
1036-is elected to the at-large position.
1037-SECTION 36. IC 20-23-12-6 IS REPEALED [EFFECTIVE UPON
1038-PASSAGE]. Sec. 6. (a) A candidate who runs for a position on the
1039-advisory board described under section 3(b) of this chapter must reside
1040-in the school corporation district for which the candidate filed.
1041-(b) A candidate who runs for the at-large position on the advisory
1042-board described in section 3(c) of this chapter must reside in the school
1043-corporation.
1044-SECTION 37. IC 20-23-12-7 IS REPEALED [EFFECTIVE UPON
1045-PASSAGE]. Sec. 7. The state board, with assistance from the county
1046-election board, shall establish:
1047-(1) balloting procedures under IC 3 for the election; and
1048-(2) all other procedures required to implement this chapter.
1049-SECTION 38. IC 20-23-12-8 IS REPEALED [EFFECTIVE UPON
1050-PASSAGE]. Sec. 8. (a) The term of each person elected to serve on the
1051-advisory board is four (4) years.
1052-(b) The term of each person elected to serve on the advisory board
1053-begins on the date set in the school corporation's organization plan. The
1054-date set in the organization plan for an elected member of the advisory
1055-board to take office may not be more than fourteen (14) months after
1056-the date of the member's election. If the school corporation's
1057-organization plan does not set a date for an elected member of the
1058-advisory board to take office, the member takes office January 1 that
1059-immediately follows the person's election.
1060-SECTION 39. IC 20-23-12-9 IS REPEALED [EFFECTIVE UPON
1061-PASSAGE]. Sec. 9. The members are elected as follows:
1062-(1) Three (3) of the members elected under section 3(b) of this
1063-chapter are elected at the general election to be held in 2020 and
1064-every four (4) years thereafter.
1065-(2) Three (3) of the members elected under section 3(b) of this
1066-chapter are elected at the general election to be held in 2022 and
1067-every four (4) years thereafter.
1068-(3) The at-large member elected under section 3(c) of this chapter
1069-SEA 327 — Concur 26
1070-is elected at the general election to be held in 2024 and every four
1071-(4) years thereafter.
1072-SECTION 40. IC 20-23-12-10 IS REPEALED [EFFECTIVE UPON
1073-PASSAGE]. Sec. 10. (a) A vacancy on the advisory board is created
1074-when:
1075-(1) a member:
1076-(A) dies;
1077-(B) resigns from the advisory board;
1078-(C) ceases to be a resident of the school corporation;
1079-(D) fails to attend, except for reason of chronic illness, six (6)
1080-regularly scheduled meetings of the advisory board in any
1081-twelve (12) month period; or
1082-(E) ceases to be a resident of the school district in which the
1083-member was elected; or
1084-(2) a vacancy is created under any other law.
1085-(b) The advisory board shall temporarily fill a vacancy on the
1086-advisory board as soon as practicable after the vacancy occurs.
1087-SECTION 41. IC 20-23-12-11 IS REPEALED [EFFECTIVE UPON
1088-PASSAGE]. Sec. 11. Before August 1 of each year, the school
1089-corporation shall file with the secretary of education a list of the:
1090-(1) names and addresses of members of the school corporation's
1091-advisory board;
1092-(2) names and addresses of the school corporation's officers; and
1093-(3) expiration dates of the terms of the school corporation's
1094-members and officers.
1095-The school corporation shall file any change in the list not later than
1096-thirty (30) days after the change occurs.
1097-SECTION 42. IC 20-23-12.1 IS ADDED TO THE INDIANA
1098-CODE AS A NEW CHAPTER TO READ AS FOLLOWS
1099-[EFFECTIVE JULY 1, 2023]:
1100-Chapter 12.1. Appointment of Governing Body Members for
1101-Gary Community School Corporation
1102-Sec. 0.5. The general assembly recognizes the following:
1103-(1) The Gary Community School Corporation has achieved
1104-financial and operational stability.
1105-(2) The Gary Community School Corporation is expected to
1106-meet the conditions for termination of distressed status in the
1107-near future.
1108-(3) The Gary Community School Corporation no longer
1109-requires special state oversight by the distressed unit appeal
1110-board.
1111-(4) That it is appropriate to transition to a new governing
1112-SEA 327 — Concur 27
1113-body.
1114-(5) The state should continue to monitor and evaluate the
1115-effectiveness of the governance structure.
1116-Sec. 1. As used in this chapter, "school corporation" means the
1117-Gary Community School Corporation.
1118-Sec. 2. (a) The governing body of the Gary Community School
1119-Corporation consists of the following five (5) members:
1120-(1) One (1) member appointed by the executive of the city of
1930+proposed change in the policy or procedure.".
1931+Page 17, delete lines 19 through 42, begin a new line block indented
1932+and insert:
1933+"(1) One (1) member appointed by the executive of the city of
11211934 Gary. The member appointed under this subdivision must
11221935 reside within the boundaries of the Gary Community School
11231936 Corporation.
11241937 (2) One (1) member appointed by the common council of the
11251938 city of Gary. The member appointed under this subdivision
11261939 must reside within the boundaries of the Gary Community
11271940 School Corporation.
1128-(3) Three (3) members appointed by the secretary of
1129-education. Of the members appointed under this subdivision:
1130-(A) at least one (1) member must reside within the
1131-boundaries of the Gary Community School Corporation;
1132-and
1941+(3) Five (5) members appointed by the secretary of education.
1942+Of the members appointed under this subdivision:
1943+(A) at least one (1) member must reside or be employed
1944+within the boundaries of the Gary Community School
1945+Corporation; and
11331946 (B) at least one (1) member (in addition to the member
11341947 described in clause (A)) must reside in Lake County.
11351948 In appointing members under this subdivision, the secretary
11361949 of education may consider whether a candidate has
11371950 experience and expertise in kindergarten through grade 12
11381951 education, financial management, career development, or
11391952 higher education.
11401953 (b) The initial members appointed under subsection (a) shall
11411954 serve staggered terms beginning July 1, 2023, as follows:
11421955 (1) The initial member appointed under subsection (a)(1) must
11431956 be appointed for one (1) year.
11441957 (2) The initial member appointed under subsection (a)(2) must
1958+ES 327—LS 7331/DI 120 46
11451959 be appointed for two (2) years.
1146-(3) Two (2) of the initial members appointed under subsection
1147-(a)(3) must be appointed for one (1) year.
1148-(4) One (1) of the initial members appointed under subsection
1149-(a)(3), who is not appointed to an initial term described in
1960+(3) Three (3) of the initial members appointed under
1961+subsection (a)(3) must be appointed for one (1) year.
1962+(4) Two (2) of the initial members appointed under subsection
1963+(a)(3), who are not appointed to an initial term described in
11501964 subdivision (3), must be appointed for two (2) years.
11511965 (c) A member's term expires June 30 in the applicable year of
11521966 expiration. Thereafter, subject to subsection (d), each member
11531967 shall serve for a term of two (2) years. A member appointed under
11541968 subsection (a) may be reappointed to an unlimited number of
1155-SEA 327 — Concur 28
1156-successive terms.
1157-(d) A member of the governing body serves at the pleasure of
1969+successive terms.".
1970+Page 18, delete lines 1 through 11, begin a new paragraph and
1971+insert:
1972+"(d) A member of the governing body serves at the pleasure of
11581973 the appointing authority of the member. Vacancies in the
11591974 appointments to the governing body shall be filled by the original
11601975 appointing authority in accordance with the term requirements
11611976 established in this section. An appointed member serves for the
1162-remainder of an unexpired term.
1163-(e) The chairperson of the governing body shall be appointed by
1164-the secretary of education from the members appointed under
1165-subsection (a).
1166-Sec. 3. (a) The governing body appointed under section 2 of this
1167-chapter shall serve in an advisory capacity to the distressed unit
1168-appeal board and the emergency manager appointed by the
1169-distressed unit appeal board under IC 6-1.1-20.3, until the later of:
1170-(1) July 1, 2024; or
1171-(2) a date on which the school corporation's status as a
1172-distressed political subdivision is terminated.
1173-(b) Notwithstanding subsection (a), the governing body
1174-appointed under section 2 of this chapter may select a
1175-superintendent or executive leader for the school corporation
1176-whose employment would begin on the later of:
1177-(1) July 1, 2024; or
1178-(2) a date on which the school corporation's status as a
1179-distressed political subdivision is terminated.
1180-(c) Notwithstanding subsection (a), the governing body
1977+remainder of an unexpired term.".
1978+Page 18, line 24, after "superintendent" insert "or executive
1979+leader".
1980+Page 18, between lines 28 and 29, begin a new paragraph and insert:
1981+"(c) Notwithstanding subsection (a), the governing body
11811982 appointed under section 2 of this chapter may vote to make the
1182-appointments to the library board under IC 36-12-2-9(3).
1183-Sec. 4. (a) On the later of:
1184-(1) July 1, 2024; or
1185-(2) the date on which the school corporation's status as a
1186-distressed political subdivision is terminated;
1187-the governing body appointed under section 2 of this chapter
1188-assumes all the powers, rights, duties, and obligations of a
1189-community school corporation as set forth in IC 20-23-4-26.
1190-(b) For the purposes of annual budgeting, IC 6-1.1-17-20 does
1191-not apply to the governing body. The governing body is considered
1192-a governing body with the majority of members elected for the
1193-purposes of annual budgeting.
1194-Sec. 5. Not later than October 31, 2025, and each October 31
1195-thereafter, the governing body shall submit to the distressed unit
1196-appeal board a report summarizing the financial position and
1197-operations of the school corporation for the previous state fiscal
1198-SEA 327 — Concur 29
1199-year. The report shall include any additional information
1200-requested by the distressed unit appeal board and be in the form
1201-specified by the distressed unit appeal board.
1202-Sec. 6. Before July 1, 2026, the governing body shall also submit
1203-a report to the distressed unit appeal board and the budget
1204-committee. The report required by this section must address each
1205-of the following topics:
1206-(1) Finances.
1207-(2) Operations.
1208-(3) Academics.
1209-(4) The effectiveness of the governance structure.
1210-The distressed unit appeal board shall present the topics addressed
1211-by the report to the budget committee before November 1, 2026.
1212-SECTION 43. IC 20-40-2-0.2 IS ADDED TO THE INDIANA
1983+appointments to the library board under IC 36-12-2-9(3).".
1984+Page 19, between lines 14 and 15, begin a new paragraph and insert:
1985+"SECTION 43. IC 20-40-2-0.2 IS ADDED TO THE INDIANA
12131986 CODE AS A NEW SECTION TO READ AS FOLLOWS
12141987 [EFFECTIVE UPON PASSAGE]: Sec. 0.2. As used in this chapter,
12151988 "DUAB" means the distressed unit appeal board established by
12161989 IC 6-1.1-20.3-4.
12171990 SECTION 44. IC 20-40-2-10, AS ADDED BY P.L.161-2019,
12181991 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12191992 UPON PASSAGE]: Sec. 10. (a) After the department completes the
12201993 school corporation notice requirement under section 9 of this chapter,
12211994 the department shall notify the state board, fiscal and qualitative
12221995 indicators committee, DUAB, and Indiana education employment
12231996 relations board as soon as possible of all school corporations that
12241997 received a notice stating they were on the excessive education fund
12251998 transfer list for the immediately preceding calendar year.
12261999 (b) Upon receipt of the department notice to a school corporation
12272000 under section 9 of this chapter, the school corporation's superintendent
2001+ES 327—LS 7331/DI 120 47
12282002 and financial personnel, including the school's business officer, shall
12292003 prepare and submit explanatory documentation within ninety (90) days,
12302004 explaining the following:
12312005 (1) How and why the school corporation's leadership believes the
12322006 school corporation failed to meet the education fund transfer
12332007 target percentage.
12342008 (2) The steps the school corporation's leadership is planning or
12352009 actively taking to budget and spend during the next calendar year
12362010 to meet the education fund transfer target percentage for the next
12372011 calendar year.
12382012 (c) The school corporation's superintendent shall submit the
12392013 explanatory documentation to the department and the fiscal and
12402014 qualitative indicators committee. DUAB.
1241-SEA 327 — Concur 30
12422015 (d) Upon submission of the explanatory documentation under
12432016 subsection (b), the school corporation's superintendent shall present the
12442017 explanatory documentation to the school corporation's governing body
12452018 at its next public meeting. The governing body shall enter both the
12462019 actual documentation and corresponding discussion into its official
12472020 minutes for that meeting.
12482021 (e) Upon the completion of the duties under subsection (d), the
12492022 school corporation shall publish the explanatory documentation
12502023 alongside any further notices and related reports from the department
12512024 on its Internet web site website within thirty (30) days.
12522025 (f) Upon receipt of a school corporation's explanatory
12532026 documentation, the fiscal and qualitative indicators committee DUAB
12542027 shall officially acknowledge receipt of the documentation at its next
12552028 public meeting and enter the receipt into its official minutes for that
12562029 meeting.
12572030 (g) Upon receipt of the explanatory documentation, the department,
12582031 in collaboration with the fiscal and qualitative indicators committee,
12592032 DUAB, shall review the documentation within sixty (60) days to make
12602033 a preliminary determination of whether the documentation
12612034 satisfactorily demonstrates that the school corporation's leadership has
12622035 outlined and begun a corrective action plan to make progress in
12632036 meeting the education fund transfer target percentage for the next
12642037 calendar year.
12652038 (h) If the department determines the explanatory documentation is
12662039 not satisfactory, the department may contact the superintendent and
12672040 financial personnel, including the school business officer, of the school
12682041 corporation to schedule as soon as possible an appearance before the
12692042 fiscal and qualitative indicators committee DUAB at a public meeting
12702043 to provide an opportunity to explain the details within the explanatory
2044+ES 327—LS 7331/DI 120 48
12712045 documentation, and to explain to the fiscal and qualitative indicators
12722046 committee DUAB the school corporation's budgeting and
12732047 compensation levels in relation to the following for the school
12742048 corporation:
12752049 (1) How and why the education fund transfer target percentage
12762050 was not met during the previous calendar year.
12772051 (2) Total combined expenditures.
12782052 (3) Student instructional expenditures.
12792053 (4) Noninstructional expenditures.
12802054 (5) Full-time teacher compensation expenditures.
12812055 (6) Nonteaching, full-time administrative personnel compensation
12822056 expenditures.
12832057 (7) Nonteaching staff personnel compensation expenditures.
1284-SEA 327 — Concur 31
12852058 (8) Any prior or planned attempts to seek the assistance available
12862059 under this chapter from the Indiana education employment
12872060 relations board and the department's division of finance.
12882061 (9) Any prior or planned pooling of resources, combined
12892062 purchases, usage of shared administrative services, or
12902063 collaboration with contiguous school corporations in reducing
12912064 noninstructional expenditures as described under IC 20-42.5-2-1.
12922065 (10) Any prior or planned participation in a county school safety
12932066 commission under IC 5-2-10.1-10 to assist and reduce school
12942067 safety expenditures.
12952068 (11) Any prior or planned consideration of meeting the
12962069 requirements of and applying for school corporation efficiency
12972070 incentive grants under IC 36-1.5-6.
12982071 (i) The fiscal and qualitative indicators committee DUAB may
12992072 contact the superintendent and financial personnel, including the
13002073 school's business officer, of a school corporation that has been included
13012074 on the department's excessive education fund transfer list for at least
13022075 two (2) immediately preceding calendar years to provide the school
13032076 corporation an opportunity to explain to the fiscal and qualitative
13042077 indicators committee DUAB in a public meeting the school
13052078 corporation's budgeting and compensation levels in relation to the
13062079 items listed in subsection (h).
13072080 (j) After the fiscal and qualitative indicators committee DUAB
13082081 receives the school corporation's explanation under this section, the
13092082 fiscal and qualitative indicators committee DUAB may issue an official
13102083 recommendation to the school corporation to perform a review and
13112084 improve its budgeting procedures in consultation with any state
13122085 agencies the fiscal and qualitative indicators committee DUAB
13132086 considers appropriate. The state agencies specified by the fiscal and
2087+ES 327—LS 7331/DI 120 49
13142088 qualitative indicators committee DUAB shall assist the school
13152089 corporation before and during its next collective bargaining period with
13162090 the goal of meeting or making progress toward the education fund
13172091 transfer target percentage. If the fiscal and qualitative indicators
13182092 committee DUAB issues an official recommendation to a school
13192093 corporation, the school corporation's governing body shall officially
13202094 acknowledge receipt of the recommendation at its next public meeting
13212095 and enter into the school corporation governing body's minutes for that
13222096 meeting acknowledgment of receipt of the recommendation. In
13232097 addition, the school corporation shall publish the official
13242098 recommendation on the school corporation's Internet web site. website.
13252099 (k) The school corporation shall publish the most recent notices
13262100 from the department, relevant individual reports prepared by the
1327-SEA 327 — Concur 32
13282101 department, explanatory documentation by the school corporation, and
13292102 official recommendations by the fiscal and qualitative indicators
13302103 committee DUAB on the school corporation's Internet web site.
13312104 website.
13322105 (l) The school corporation may remove the notice, its explanatory
13332106 documentation, and the fiscal and qualitative indicators committee's
13342107 DUAB's official recommendation from its Internet web site website if
13352108 the department determines that the school corporation met its education
13362109 fund transfer target percentage and is no longer on the excessive
1337-education fund transfer list.
1338-SECTION 45. IC 34-30-2.1-55, AS ADDED BY P.L.105-2022,
1339-SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1340-UPON PASSAGE]: Sec. 55. IC 6-1.1-20.3-7.5 (Concerning an act or
1341-omission of a fiscal management board member, an emergency
1342-manager, a chief financial officer, or a chief academic officer within
1343-the scope of and arising out of the performance of prescribed duties in
1344-a distressed political subdivision).
1345-SECTION 46. IC 36-12-2-9, AS AMENDED BY P.L.114-2015,
2110+education fund transfer list.".
2111+Page 19, between lines 21 and 22, begin a new paragraph and insert:
2112+"SECTION 46. IC 36-12-2-9, AS AMENDED BY P.L.114-2015,
13462113 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13472114 JULY 1, 2023]: Sec. 9. Except as provided in section 15 of this chapter
13482115 and subject to IC 20-23-12.1-3(c) and section 16 of this chapter, seven
13492116 (7) members of a library board shall be appointed as follows:
13502117 (1) One (1) member appointed by the executive of the county in
13512118 which the library district is located, or if the district is located in
13522119 more than one (1) county, jointly by the executives of the
13532120 respective counties.
13542121 (2) One (1) member appointed by the fiscal body of the county in
13552122 which the library district is located, or if the district is located in
13562123 more than one (1) county, jointly by the fiscal bodies of the
13572124 respective counties.
13582125 (3) Three (3) members appointed by the school board of the
13592126 school corporation serving the library district. However, if there
13602127 is more than one (1) school corporation serving the library
13612128 district:
13622129 (A) two (2) members shall be appointed by the school board
2130+ES 327—LS 7331/DI 120 50
13632131 of the school corporation in which the principal administrative
13642132 offices of the public library are located; and
13652133 (B) one (1) member shall be appointed by a majority vote of
13662134 the presidents of the school boards of the other school
13672135 corporations.
13682136 (4) One (1) member appointed under section 10(1), 11(b)(1),
13692137 12(1), 13(a)(1), 13(b)(1), or 14(1) of this chapter, as applicable.
1370-SEA 327 — Concur 33
13712138 (5) One (1) member appointed under section 10(2), 11(b)(2),
1372-12(2), 13(a)(2), 13(b)(2), or 14(2) of this chapter, as applicable.
1373-SECTION 47. [EFFECTIVE UPON PASSAGE] (a) As used in this
1374-SECTION, "emergency manager" refers to the emergency
1375-manager for the Gary School Corporation appointed under
1376-IC 6-1.1-20.3-7.5.
1377-(b) If approved by the distressed unit appeal board, the rainy
1378-day fund transfer limitations under IC 36-1-8-5.1(d)(2)(B)(ii) and
1379-IC 36-1-8-5.1(d)(2)(B)(iii) do not apply to the emergency manager.
1380-(c) This SECTION expires July 1, 2024.
1381-SECTION 48. [EFFECTIVE UPON PASSAGE] (a) As used in this
1382-SECTION, "advisory board" refers to the Gary Community
1383-School Corporation advisory board established under
1384-IC 20-23-12-3, before its repeal by this act.
1385-(b) As used in this SECTION, "governing body" refers to the
1386-governing body appointed by the secretary of education under
1387-IC 20-23-12.1-2, as added by this act.
1388-(c) The terms of the members of the advisory board expire upon
1389-passage of this act.
1390-(d) The term of the member appointed to the fiscal management
1391-board under IC 6-1.1-20.3-6.8(g)(1), before its amendment by this
1392-act, expires upon passage of this act.
1393-(e) Before July 1, 2023, the secretary of education shall appoint
1394-the initial members to the governing body in the manner
1395-prescribed by IC 20-23-12.1-2, as added by this act.
1396-(f) The initial terms for members of the governing body
1397-appointed as described in subsection (e) begin July 1, 2023.
1398-(g) This SECTION expires July 1, 2026.
1399-SECTION 49. An emergency is declared for this act.
1400-SEA 327 — Concur President of the Senate
1401-President Pro Tempore
1402-Speaker of the House of Representatives
1403-Governor of the State of Indiana
1404-Date: Time:
1405-SEA 327 — Concur
2139+12(2), 13(a)(2), 13(b)(2), or 14(2) of this chapter, as applicable.".
2140+Renumber all SECTIONS consecutively.
2141+and when so amended that said bill do pass.
2142+(Reference is to SB 327 as printed February 10, 2023.)
2143+THOMPSON
2144+Committee Vote: yeas 14, nays 9.
2145+_____
2146+HOUSE MOTION
2147+Mr. Speaker: I move that Engrossed Senate Bill 327 be amended to
2148+read as follows:
2149+Page 27, line 13, delete "seven (7)" and insert "five (5)".
2150+Page 27, line 22, delete "Five (5)" and insert "Three (3)".
2151+Page 27, line 24, delete "or be employed".
2152+Page 27, line 40, delete "Three (3)" and insert "Two (2)".
2153+Page 27, line 42, delete "Two (2)" and insert "One (1)".
2154+Page 28, line 1, delete "are" and insert "is".
2155+(Reference is to ESB 327 as printed April 11, 2023.)
2156+HATCHER
2157+ES 327—LS 7331/DI 120