First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2022 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 327
AN ACT to amend the Indiana Code concerning education.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 4-6-2-1.5, AS AMENDED BY P.L.163-2020,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 1.5. (a) Whenever any state governmental official
or employee, whether elected or appointed, is made a party to a suit,
and the attorney general determines that said suit has arisen out of an
act which such official or employee in good faith believed to be within
the scope of the official's or employee's duties as prescribed by statute
or duly adopted regulation, the attorney general shall defend such
person throughout such action.
(b) Whenever a teacher (as defined in IC 20-18-2-22) is made a
party to a civil suit, and the attorney general determines that the suit
has arisen out of an act that the teacher in good faith believed was
within the scope of the teacher's duties in enforcing discipline policies
developed under IC 20-33-8-12, the attorney general shall defend the
teacher throughout the action.
(c) Not later than July 30 of each year, the attorney general, in
consultation with the Indiana education employment relations board
established in IC 20-29-3-1, shall draft and disseminate a letter by first
class mail to the residence of teachers providing a summary of the
teacher's rights and protections under state and federal law, including
a teacher's rights and protections relating to the teacher's performance
evaluation under IC 20-28-11.5.
(d) The department of education, in consultation with the Indiana
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education employment relations board, shall develop a method to
provide the attorney general with the names and addresses of active
teachers in Indiana in order for the attorney general to disseminate the
letter described in subsection (c). Names and addresses collected and
provided to the attorney general under this subsection are confidential
and excepted from public disclosure as provided in IC 5-14-3-4.
(e) Whenever a school corporation (as defined in IC 20-26-2-4) is
made a party to a civil suit and the attorney general determines that the
suit has arisen out of an act authorized under IC 20-30-5-0.5 or
IC 20-30-5-4.5, the attorney general shall defend the school corporation
throughout the action.
(f) Whenever a member of the fiscal management board appointed
under IC 6-1.1-20.3-6.8 is made a party to a civil suit and the attorney
general determines that the suit has arisen out of an act by the fiscal
management board member that is authorized or required under
IC 6-1.1-20.3 or any other law, the attorney general shall defend the
fiscal management board member throughout the action.
(g) (f) As used in this subsection, "bridge authority" refers to the
New Harmony and Wabash River bridge authority established by
IC 8-16-15.5-2. Whenever:
(1) the bridge authority;
(2) a member of the bridge authority;
(3) an officer of the bridge authority; or
(4) an employee of the bridge authority;
is made a party to a civil suit and the attorney general determines that
the suit has arisen out of an act or omission of any person described in
subdivision (1), (2), (3), or (4), that is authorized or required under
IC 8-16-15.5 or any other law, the attorney general shall defend that
person throughout the action.
(h) (g) A determination by the attorney general under subsection (a),
(b), (e), or (f) or (g) shall not be admitted as evidence in the trial of any
such civil action for damages.
(i) (h) Nothing in this chapter shall be construed to deprive any such
person of the person's right to select counsel of the person's own choice
at the person's own expense.
SECTION 2. IC 5-9-4-7, AS AMENDED BY P.L.2-2014,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 7. (a) Except as provided in subsection (b) or (c),
an officeholder who elects to take the leave of absence described in
section 6 of this chapter shall give written notice that the officeholder
is taking a leave of absence for military service to the person or entity
designated in IC 5-8-3.5-1 to receive a resignation for the office the
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officeholder holds.
(b) An officeholder who is:
(1) a justice of the supreme court, a judge of the court of appeals,
or a judge of the tax court; or
(2) a judge of a circuit, city, probate, or superior court;
shall give the written notice required by subsection (a) to the clerk of
the supreme court.
(c) An officeholder who holds a school board office shall give the
written notice required by subsection (a) to the person or entity
designated in IC 20-25-3, IC 20-25-4, IC 20-25-5, IC 20-23-12,
IC 20-23-12.1, IC 20-23-14, IC 20-23-15, IC 20-23-4, or IC 20-26 to
receive a resignation for the office the officeholder holds.
(d) The written notice required by subsection (a) must state that the
officeholder is taking a leave of absence because the officeholder:
(1) has been called for active duty in:
(A) the armed forces of the United States; or
(B) the national guard; and
(2) will be temporarily unable to perform the duties of the
officeholder's office.
SECTION 3. IC 5-9-4-8, AS AMENDED BY P.L.74-2017,
SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 8. (a) Except as provided in subsection (b) and
IC 36-5-6-9, during the officeholder's leave of absence, the
officeholder's office must be filled by a temporary appointment made
under:
(1) IC 3-13-4;
(2) IC 3-13-5;
(3) IC 3-13-6;
(4) IC 3-13-7;
(5) IC 3-13-8;
(6) IC 3-13-9;
(7) IC 3-13-10;
(8) IC 3-13-11;
(9) IC 20-23-4;
(10) IC 20-26;
(11) IC 20-23-12; IC 20-23-12.1;
(12) IC 20-23-14;
(13) IC 20-23-15;
(14) IC 20-23-17;
(15) IC 20-23-17.2;
(16) IC 20-25-3;
(17) IC 20-25-4; or
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(18) IC 20-25-5;
in the same manner as a vacancy created by a resignation is filled. A
temporary appointment may be made in accordance with the applicable
statute after the written notice required under section 7 of this chapter
has been filed.
(b) For an officeholder who:
(1) is:
(A) a justice of the supreme court, a judge of the court of
appeals, or a judge of the tax court; or
(B) a judge of a circuit, city, probate, or superior court; and
(2) is taking a leave of absence under this chapter;
the supreme court shall appoint a judge pro tempore to fill the
officeholder's office in accordance with the court's rules and
procedures.
(c) The person selected or appointed under subsection (a) or (b)
serves until the earlier of:
(1) the date the officeholder's leave of absence ends as provided
in section 10 of this chapter; or
(2) the officeholder's term of office expires.
(d) The person selected or appointed to an office under subsection
(a) or (b):
(1) assumes all the rights and duties of; and
(2) is entitled to the compensation established for;
the office for the period of the temporary appointment.
SECTION 4. IC 5-13-7-8, AS ADDED BY P.L.101-2019,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. (a) During the annual meeting required by
section 6 of this chapter, the superintendent of a school corporation
shall submit a written report to the local board of finance for the school
corporation. The report must assess the financial condition of the
school corporation using the fiscal and qualitative indicators
determined under IC 20-19-7-4 by the fiscal and qualitative indicators
committee. distressed unit appeal board established by
IC 6-1.1-20.3-4.
(b) The local board of finance shall review the report made under
subsection (a).
(c) The superintendent of a school corporation may delegate the
duty to submit a report under subsection (a) to an employee or
representative of the school corporation.
SECTION 5. IC 6-1.1-20.3-5, AS AMENDED BY
P.L.213-2018(ss), SECTION 4, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5. (a) The board may
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employ an executive director staff who shall serve at the pleasure of
the board and carry out the administrative responsibilities assigned by
the board. The board may delegate a specific duty, authority, or
responsibility assigned to the board under this chapter to the executive
director. staff.
(b) The department of local government finance shall provide the
board with the staff and assistance that the board reasonably requires.
(c) The department of local government finance shall may provide
from the department's budget funding to support the board's duties
under this chapter.
(d) The board may contract with accountants, financial experts, and
other advisors and consultants as necessary to carry out the board's
duties under this chapter.
(e) The board may adopt rules to implement the board's duties,
authorities, or responsibilities, including those in this chapter and those
in IC 20-19-7.
SECTION 6. IC 6-1.1-20.3-6.8, AS AMENDED BY P.L.43-2021,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 6.8. (a) This section applies only to the Gary
Community School Corporation.
(b) The general assembly finds that the provisions of this section:
(1) are necessary to address the unique issues faced by the Gary
Community School Corporation; and
(2) are not precedent for and may not be appropriate for
addressing issues faced by other school corporations.
(c) As used in this section, the following definitions apply:
(1) "Chief academic officer" means the chief academic officer
appointed under subsection (j). (h).
(2) "Chief financial officer" means the chief financial officer
appointed under subsection (i). (g).
(3) "School corporation" refers to the Gary Community School
Corporation.
(d) The Gary Community School Corporation is designated as a
distressed political subdivision for purposes of this chapter until the
school corporation's designation as a distressed political subdivision is
terminated as provided in section 13(b) of this chapter. This
designation as a distressed political subdivision is effective regardless
of whether the school corporation has submitted a petition requesting
to be designated as a distressed political subdivision. Until the school
corporation's designation as a distressed political subdivision is
terminated as provided in section 13(b) of this chapter, the Gary
Community School Corporation advisory board may not hold a public
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meeting more often than once every three (3) months. This limit on the
number of meetings of the advisory board does not apply to the
emergency manager. The emergency manager shall hold a monthly
forum to provide an update on the Gary Community School
Corporation within the school district that is open to the general public.
During the period that the Gary Community School Corporation is
designated as a distressed political subdivision, the advisory board may
vote to:
(1) fill vacancies;
(2) select officers; or
(3) make appointments;
of the advisory board, and to present awards, recognition, and
certificates to employees or supporters of the school corporation.
(e) Until the school corporation's designation as a distressed
political subdivision is terminated as provided in section 13(b) of this
chapter, the following apply to the emergency manager appointed
under section 7.5 of this chapter for the school corporation:
(1) The emergency manager has the powers and duties specified
in this chapter.
(2) The emergency manager shall consider recommendations
from the fiscal management board and the advisory board, but the
emergency manager has full responsibility and authority related
to financial and academic matters of the school corporation, and
the emergency manager may act, as specified in this chapter, on
these financial and academic matters without the approval of the
fiscal management board or the advisory board.
(3) (2) Notwithstanding section 7.5(d) of this chapter, the
distressed unit appeal board shall:
(A) determine the compensation of the emergency manager;
chief financial officer, and chief academic officer; and
(B) subject to subsections (i) (g) and (j), (h), pay the
emergency manager's chief financial officer's, and chief
academic officer's compensation and reimburse the emergency
manager chief financial officer, and chief academic officer for
actual and necessary expenses from funds appropriated to the
distressed unit appeal board.
(4) (3) Before appointing the emergency manager, the distressed
unit appeal board shall interview at least one (1) resident of the
city of Gary as a candidate for the position. If the distressed unit
appeal board is not able to interview a resident of the city of Gary
as a candidate for the position, the distressed unit appeal board
shall interview at least one (1) individual who is a resident of
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Lake County or northwest Indiana as a candidate for the position.
The appointment of the emergency manager for the school corporation
is terminated on the date the school corporation's designation as a
distressed political subdivision is terminated as provided in section
13(b) of this chapter.
(f) In addition to any other actions that the distressed unit appeal
board may take under this chapter concerning a distressed political
subdivision, for a distressed school corporation, the distressed unit
appeal board may also do any of the following:
(1) The distressed unit appeal board may delay or suspend, for a
period determined by the board, any payments of principal or
interest, or both, that would otherwise be due from the school
corporation on loans or advances from the common school fund.
(2) The distressed unit appeal board may recommend to the state
board of finance that the state board of finance make an interest
free loan to the school corporation from the common school fund.
The distressed unit appeal board shall determine the payment
schedule and the commencement date for the loan. If the
distressed unit appeal board makes a recommendation that such
a loan be made, the state board of finance may, notwithstanding
IC 20-49, make such a loan for a term of not more than ten (10)
years.
(3) The distressed unit appeal board may establish benchmarks of
financial improvement for the school corporation.
(4) The distressed unit appeal board may provide a grant or grants
to the school corporation from funds appropriated to the
distressed unit appeal board, in amounts determined by the
distressed unit appeal board, to assist the school corporation in
overcoming short term financial problems.
(5) The distressed unit appeal board may make a recommendation
to the general assembly concerning the possible restructuring of
advances made to the school corporation from the common school
fund, including forgiveness of principal and interest on those
advances.
(g) The fiscal management board is established. The fiscal
management board consists of the following members:
(1) One (1) member appointed by the advisory board.
(2) One (1) member appointed by the mayor of the city of Gary.
(3) One (1) member, who must have experience working with or
for an urban school corporation, appointed by the secretary of
education.
(4) One (1) member, who must have experience working with or
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for an urban school corporation, appointed by the state board of
education.
(h) The following apply to the fiscal management board and to the
members of the fiscal management board:
(1) The term of office of a member of the fiscal management
board is four (4) years, beginning on the date of appointment. A
member of the fiscal management board may be reappointed to
the fiscal management board. A member of the fiscal
management board may be removed for cause by the appointing
authority.
(2) A member of the fiscal management board must have the
following:
(A) At least three (3) years experience in financial
management.
(B) A meaningful background and work experience in finance
and business.
(C) An understanding of government contracts.
(D) Knowledge and experience in organizational effectiveness,
operations management, and implementing best practices.
(E) Experience in budget development and oversight.
(F) A demonstrated commitment to high professional and
ethical standards and a diverse workplace.
(G) An understanding of tax and other compliance
implications.
(3) A member of the advisory board may not serve as a member
of the fiscal management board.
(4) The fiscal management board:
(A) shall make recommendations to the emergency manager;
and
(B) shall advise the emergency manager as requested by the
emergency manager.
(5) The members of the fiscal management board are not entitled
to any compensation for their service on the fiscal management
board.
(6) The fiscal management board is abolished, and the terms of
the members of the fiscal management board are terminated, on
the date the school corporation's designation as a distressed
political subdivision is terminated as provided in section 13(b) of
this chapter.
(7) Under the supervision of the emergency manager, the fiscal
management board shall serve as a liaison to and shall work
jointly with the distressed unit appeal board, the mayor of the city
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of Gary, and the department of education to develop a transition
plan to address issues or questions related to:
(A) the designation of the school corporation as a distressed
political subdivision and the transfer of powers and duties to
the emergency manager under this chapter; and
(B) the potential impact of the transition on the community
and the school corporation.
(8) Under the supervision of the emergency manager, the fiscal
management board shall work jointly with the distressed unit
appeal board, the mayor of the city of Gary, and the department
of education to provide information on a regular basis to parents,
students, employees of the school corporation, and the public on
the status of the transition.
(i) (g) The emergency manager shall employ a chief financial officer
for the school corporation. The chief financial officer is an employee
of the school corporation. The chief financial officer shall report to the
emergency manager and shall assist the emergency manager appointed
for the school corporation and the fiscal management board in carrying
out the day to day financial operations of the school corporation. Before
July 1, 2019, the compensation of the chief financial officer shall be
determined by the distressed unit appeal board. Before July 1, 2019, the
compensation of the chief financial officer shall be paid from the funds
appropriated to the distressed unit appeal board. After June 30, 2019,
The compensation of the chief financial officer shall be determined by
and paid by the school corporation. The chief financial officer:
(1) must possess, through both education and experience, an
understanding of finance and financial management; and
(2) must possess any other experience and must meet any other
requirements as required by the distressed unit appeal board to
ensure that the chief financial officer is qualified to carry out the
financial restructuring of the school corporation.
Before employing a chief financial officer under this subsection, the
emergency manager shall interview at least one (1) resident of the city
of Gary as a candidate for the position. If the emergency manager is not
able to interview a resident of the city of Gary as a candidate for the
position, the emergency manager shall interview at least one (1)
individual who is a resident of Lake County or northwest Indiana as a
candidate for the position.
(j) (h) The emergency manager shall employ a chief academic
officer for the school corporation, after consultation with the
department of education, who must have experience working with or
for an urban school corporation. The chief academic officer is an
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employee of the school corporation. The chief academic officer shall
report to the emergency manager and shall assist the emergency
manager appointed for the school corporation and the fiscal
management board in carrying out the academic matters of the school
corporation. Before July 1, 2019, the compensation of the chief
academic officer shall be determined by the distressed unit appeal
board. Before July 1, 2019, the compensation of the chief academic
officer shall be paid from the funds appropriated to the distressed unit
appeal board. After June 30, 2019, The compensation of the chief
academic officer shall be determined by and paid by the school
corporation. The chief academic officer must:
(1) hold a valid license to teach in a public school under
IC 20-28-5;
(2) possess, through both education and experience, an
understanding of curriculum and academics; and
(3) possess any other experience and meet any other requirements
as required by the distressed unit appeal board to ensure that the
chief academic officer is qualified to carry out the academic goals
of the school corporation.
Before employing a chief academic officer under this subsection, the
emergency manager shall interview at least one (1) resident of the city
of Gary as a candidate for the position. If the emergency manager is not
able to interview a resident of the city of Gary as a candidate for the
position, the emergency manager shall interview at least one (1)
individual who is a resident of Lake County or northwest Indiana as a
candidate for the position.
(k) (i) The chief financial officer and chief academic officer shall
assist the emergency manager in carrying out the emergency manager's
duties under this chapter.
(l) (j) The annual budget adopted by the emergency manager for the
school corporation must dedicate a significant part of the school
corporation's budget to eliminating the school corporation's outstanding
financial obligations. The emergency manager shall attempt to
negotiate with the creditors of the school corporation to establish a plan
specifying the schedule for paying each creditor. The emergency
manager shall submit the plan to the distressed unit appeal board for
approval. The distressed unit appeal board must:
(1) review the plan submitted by the emergency manager; and
(2) not later than sixty (60) days after the plan is submitted,
either:
(A) approve the plan as submitted by the emergency manager;
or
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(B) modify the plan as submitted by the emergency manager
and then approve the modified plan.
(m) (k) The emergency manager shall consider any
recommendations from the fiscal management board, the advisory
board, and the mayor of the city of Gary in developing the school
corporation's annual budget. The distressed unit appeal board must
review and approve the school corporation's annual budget that is
proposed by the emergency manager. When the emergency manager
submits the school corporation's proposed annual budget to the
distressed unit appeal board, the emergency manager shall provide
copies of the proposed annual budget to the fiscal management board
and the advisory board.
(n) (l) After considering any recommendations from the fiscal
management board, the advisory board, and the mayor of the city of
Gary, the emergency manager shall do the following:
(1) Conduct a financial and compliance audit of the operations of
the school corporation.
(2) Develop a written financial plan for the school corporation.
The object of the plan must be to achieve financial stability for
the school corporation, and the plan must include provisions for
paying all of the school corporation's outstanding obligations and
for paying all future obligations of the school corporation
(including any federal, state, or local taxes or assessments) in a
timely manner.
(o) (m) In addition to the report required by section 8.5(c)(5) of this
chapter, the emergency manager, the chief financial officer, and the
chief academic officer shall report quarterly to the distressed unit
appeal board in a format specified by the distressed unit appeal board.
The report must include:
(1) information concerning the actions that the school corporation
is taking to improve the financial condition of the school
corporation; and
(2) any other information required by the distressed unit appeal
board.
The emergency manager shall report more frequently than quarterly if
requested by the distressed unit appeal board. The emergency manager
shall provide copies of the report to the fiscal management board, the
advisory board, and the mayor of the city of Gary. The emergency
manager shall present each report at a public meeting of the fiscal
management board.
(p) (n) The school corporation shall do the following:
(1) Publish a copy of each report under subsection (o) (m) on the
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school corporation's Internet web site, website, along with a link
to the main page of the Indiana transparency Internet web site
website established under IC 5-14-3.7 to provide access to
financial data for local schools.
(2) Make copies of each report available free of charge to the
public upon request.
(3) Provide copies of each report to the mayor of the city of Gary.
The mayor shall make copies of the reports available free of
charge to the public upon request.
(q) (o) The chief academic officer shall develop an education plan
to provide academic services to students in the school corporation and
to achieve academic progress. The education plan must include at least
the following components:
(1) An academic program designed to meet Indiana's academic
standards and to assist students in meeting those academic
standards.
(2) A plan to improve the academic performance of all students,
including improvement in the performance of students on
standardized tests.
(3) A plan to engage parents in school performance and school
activities, including regular meetings at each school involving
administrators, teachers, parents, and interested members of the
community.
(4) A plan to implement performance standards that will attract
students and families to the school corporation.
(5) A plan specifying how the school corporation will work
directly with the city of Gary:
(A) to make the schools a successful component of life within
the city; and
(B) to develop a sense of pride and progress in the operations
and accomplishments of the school corporation.
The chief financial officer and the chief academic officer shall submit
a report to the advisory board each quarter. The chief financial officer
and chief academic officer shall meet at least quarterly with the
executive committee of the bargaining unit to inform the executive
committee of the academic progress of the school corporation.
SECTION 7. IC 6-1.1-20.3-7.1 IS REPEALED [EFFECTIVE JULY
1, 2023]. Sec. 7.1. (a) This section applies only to the Muncie
Community Schools.
(b) The general assembly finds that the provisions of this section:
(1) are necessary to address the unique issues faced by the
Muncie Community Schools;
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(2) are not precedent for and may not be appropriate for
addressing issues faced by other school corporations; and
(3) are consistent with the board designating the Muncie
Community school corporation as a distressed political
subdivision effective January 1, 2018.
(c) Notwithstanding section 7.5(d) of this chapter, the board shall
determine the compensation of the emergency manager, pay the
emergency manager's compensation, and reimburse the emergency
manager for actual and necessary expenses from funds appropriated to
the board.
(d) In addition to any other actions that the board may take under
this chapter concerning a distressed political subdivision, the board
may recommend, before July 1, 2020, to the state board of finance that
the state board of finance make an interest free loan to the school
corporation from the common school fund. The distressed unit appeal
board shall determine the payment schedule and the commencement
date for the loan. If the board makes a recommendation that such a loan
be made, the state board of finance may, notwithstanding IC 20-49,
make the loan for a term of not more than ten (10) years.
SECTION 8. IC 6-1.1-20.3-7.5, AS AMENDED BY
P.L.213-2018(ss), SECTION 8, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 7.5. (a) This section
does not apply to a school corporation designated before July 1, 2013,
as a distressed political subdivision.
(b) If a political subdivision is designated as a distressed political
subdivision under this chapter, the board shall appoint an emergency
manager for the distressed political subdivision. An emergency
manager serves at the pleasure of the board. For purposes of IC 34-13,
an emergency manager appointed under this section is acting on behalf
of the distressed political subdivision and not the state.
(c) The chairperson of the board shall oversee the activities of an
emergency manager.
(d) Except as provided in this chapter, the distressed political
subdivision shall pay the emergency manager's compensation and
reimburse the emergency manager for actual and necessary expenses.
(e) A member of a fiscal management board, An emergency
manager, a chief financial officer, or a chief academic officer is
immune from civil liability for an act or omission within the scope and
arising out of the performance of duties prescribed by the board under
this chapter. This subsection does not apply to an act or omission that
constitutes gross negligence or willful misconduct.
(f) The attorney general shall represent a member of the distressed
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unit appeal board, a member of a fiscal management board, an
emergency manager, a chief financial officer, or a chief academic
officer in a legal action arising out of the exercise of powers granted
under this chapter, if the member of the distressed unit appeal board,
the member of a fiscal management board, emergency manager, chief
financial officer, or chief academic officer makes a written request to
the attorney general requesting representation. The attorney general
may not represent a member of the distressed unit appeal board, a
member of a fiscal management board, an emergency manager, a chief
financial officer, or a chief academic officer under this subsection if the
legal action is initiated or the claim is asserted by the member of the
distressed unit appeal board, the member of the fiscal management
board, the emergency manager or the distressed political subdivision.
If the attorney general represents a member of the distressed unit
appeal board, a member of a fiscal management board, an emergency
manager, a chief financial officer, or a chief academic officer under this
subsection, the member of the distressed unit appeal board, the member
of a fiscal management board, emergency manager, chief financial
officer, or chief academic officer is entitled to recover attorney's fees
from the losing party to the extent the member of the distressed unit
appeal board, the member of the fiscal management board, emergency
manager, chief financial officer, or chief academic officer prevails. Any
attorney's fees recovered shall be deposited in the state general fund.
SECTION 9. IC 6-1.1-20.3-15, AS AMENDED BY
P.L.213-2018(ss), SECTION 13, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) The
executive of a political subdivision or a majority of the members of the
fiscal body of a political subdivision may request technical assistance
from the board in helping prevent the political subdivision from
becoming a distressed political subdivision. The board, by using the
health fiscal and qualitative indicators developed under IC 20-19-7 or
the fiscal health indicators developed under IC 5-14-3.8-8, shall
determine whether to provide assistance to the political subdivision.
(b) The board may do any of the following for a political subdivision
that receives assistance under subsection (a):
(1) Provide information and technical assistance with respect to
the data management, accounting, or other aspects of the fiscal
management of the political subdivision.
(2) Assist the political subdivision in obtaining assistance from
state agencies and other resources.
SECTION 10. IC 20-19-7-2 IS REPEALED [EFFECTIVE JULY 1,
2023]. Sec. 2. As used in this chapter, "executive director" means the
SEA 327 — Concur 15
executive director of the DUAB.
SECTION 11. IC 20-19-7-2.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2.3. As used in this chapter,
"public agency" has the meaning set forth in IC 5-14-1.5-2(a).
SECTION 12. IC 20-19-7-2.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2.5. As used in this chapter,
"public official" means an elected or appointed official in the
executive, legislative, or judicial branch of the state government or
a political subdivision, and includes an individual acting on behalf
of a public employer, whether temporarily or permanently,
including, but not limited to, members of boards, committees,
commissions, authorities, and other instrumentalities of the state
or a political subdivision.
SECTION 13. IC 20-19-7-3 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 3. (a) The fiscal and qualitative indicators committee
is established to make the following determinations:
(1) The determination of the fiscal and qualitative indicators to be
used for evaluating the financial condition of each school
corporation.
(2) The determination of the information that is to be presented on
the DUAB's Internet website or the management performance
hub's Internet web site in accordance with section 5(c) of this
chapter.
(3) The determination of how frequently to update:
(A) the fiscal and qualitative indicators being used to evaluate
the financial condition of school corporations; and
(B) the presentation of information on the DUAB's Internet
web site or the management performance hub's Internet web
site in accordance with section 5(c) of this chapter.
(b) The members of the committee must be employees of, and
appointed by, each of the following:
(1) The DUAB.
(2) The department of education.
(3) The budget agency.
(4) The state board of accounts.
(5) The department of local government finance.
(6) The management performance hub.
In addition, a member of the Indiana Association of School Business
Officials appointed by the Association's board of directors is a member
of the committee.
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(c) The member appointed by the DUAB is the chairperson of the
committee.
(d) Members serve at the pleasure of the appointing authority.
SECTION 14. IC 20-19-7-4, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. (a) Subject to review by the state budget
committee under section 6 of this chapter, the fiscal and qualitative
indicators committee DUAB shall determine the fiscal and qualitative
indicators to be used for evaluating the financial condition of each
school corporation.
(b) The fiscal indicators under subsection (a) may include the
following factors:
Annual capital expenses compared to total capital assets
Average daily membership (ADM)
Common school fund loans
Controlled project fund referendum revenue
Debt to assessed value and debt to ADM ratios
Education fund referendum revenue
Federal revenues
Fund cash balances by fund and overall
Fund deficits and surpluses by fund and overall
Fund deficits and surpluses combining the education and
operations fund and debt
Gross expenditures per ADM
Interfund transfers
Operating deficit or surplus
Outstanding debt and annual debt service obligations
Qualitative indicators as set forth in subsection (c)
Salaries and benefits
Seven (7) year trend lines using state fiscal years
State tuition support
Any other fiscal indicator determined by the fiscal and qualitative
indicators committee. DUAB.
(c) The qualitative indicators under subsection (a) may include the
following factors:
Failure to make required contributions or transfers
Issuance of judgment bonds
Missed debt payments
Missed payroll
Past due vendor payments
Any findings related to the financial condition of the school
corporation by the Indiana education employment relations board
SEA 327 — Concur 17
Any other qualitative indicator determined by the fiscal and
qualitative indicators committee. DUAB.
SECTION 15. IC 20-19-7-5, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) Subject to review by the state budget
committee under section 6 of this chapter, the fiscal and qualitative
indicators committee DUAB shall prescribe the presentation of the
information of the fiscal and qualitative indicators used under this
chapter.
(b) The information under subsection (a) must be presented in a
manner that accomplishes the following:
(1) The information must be conveniently and easily accessed
from a single Internet web page.
(2) The information must be viewable in a format commonly
known as an Internet a dashboard.
(3) The information must be viewable in graphical form.
(4) The information must be easily searchable.
(5) The underlying data must be downloadable in a format that
can be imported into standard spreadsheet computer software.
(c) The DUAB shall periodically publish the information under
subsection (a) on its Internet web site website or the management
performance hub's Internet web site. website. The management
performance hub shall assist the DUAB in the development of the
dashboard for publication.
SECTION 16. IC 20-19-7-6, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) Before making a final determination
under section 4 of this chapter concerning the fiscal and qualitative
indicators that will be used for evaluating the financial condition of
school corporations, the fiscal and qualitative indicators committee
DUAB must present a draft of the proposed fiscal and qualitative
indicators to the state budget committee for review by the state budget
committee.
(b) Before prescribing the requirements under section 5 of this
chapter for the presentation of the fiscal and qualitative indicators used
under this chapter, the fiscal and qualitative indicators committee
DUAB must present a draft of the proposed requirements to the state
budget committee for review by the state budget committee.
SECTION 17. IC 20-19-7-7 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 7. The fiscal and qualitative indicators committee
shall before January 1, 2019, publish the fiscal and qualitative
indicators for each school corporation on the DUAB's Internet web site
SEA 327 — Concur 18
or the management performance hub's Internet web site.
SECTION 18. IC 20-19-7-8, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 8. The DUAB shall may adopt policies and
procedures that will be used by the DUAB to implement this chapter.
Policies and procedures adopted under this section may include
processes that will be used by the DUAB to do the following:
(1) Identify school corporations that demonstrate signs of
financial distress.
(2) Determine when a corrective action plan is necessary for
a school corporation.
(3) Determine the conditions that must be satisfied before a
school corporation:
(A) will no longer be subject to a corrective action plan;
and
(B) will be considered as financially healthy.
SECTION 19. IC 20-19-7-9 IS REPEALED [EFFECTIVE JULY 1,
2023]. Sec. 9. The executive director shall present to the state budget
committee a report concerning the processes that will be used by
DUAB and the executive director to do the following:
(1) Identify school corporations that demonstrate signs of
financial distress.
(2) Determine when a corrective action plan is necessary for a
school corporation.
(3) Determine the conditions that must be satisfied before a
school corporation:
(A) will no longer be subject to a corrective action plan; and
(B) will be considered as financially healthy.
SECTION 20. IC 20-19-7-10, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 10. Before June 1, 2019, the executive director
shall prepare and submit to the DUAB an initial report identifying
those school corporations for which a corrective action plan may be
appropriate, based on the fiscal and qualitative indicators. The
executive director DUAB shall on a schedule determined by the DUAB
submit subsequent periodically prepare reports identifying those
school corporations for which a corrective action plan may be
appropriate, based on the fiscal and qualitative indicators. The DUAB
shall make a determination concerning which school corporations the
executive director DUAB shall contact for purposes of conducting an
assessment under section 11 of this chapter.
SECTION 21. IC 20-19-7-11, AS ADDED BY P.L.213-2018(ss),
SEA 327 — Concur 19
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 11. (a) The executive director DUAB shall do the
following:
(1) Contact the governing body and the superintendent of each
school corporation for which the distressed unit appeal board
DUAB makes a determination under section 10 of this chapter.
(2) Carry out an assessment of the financial condition of each
school corporation for which the DUAB makes a determination
under section 10 of this chapter.
(b) A school corporation for which an assessment of financial
condition is carried out under this section shall:
(1) cooperate with the executive director DUAB as the executive
director DUAB carries out the assessment of the school
corporation's financial condition; and
(2) provide any information and documents requested by the
executive director. DUAB.
SECTION 22. IC 20-19-7-12, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 12. (a) After reviewing:
(1) the assessment of a school corporation's financial condition
made by the executive director under section 11 of this chapter;
and
(2) the school corporation's fiscal and qualitative indicators;
the DUAB shall make a determination of whether a corrective action
plan is necessary for the school corporation.
(b) If the DUAB makes a determination that a corrective action plan
is necessary for the school corporation, the DUAB shall notify the
governing body and the superintendent of the school corporation that
the school corporation must develop and submit to the DUAB a
corrective action plan for the school corporation within ninety (90)
days after the notice is provided.
(c) If a school corporation does not prepare and submit a corrective
action plan to the DUAB within ninety (90) days after the notice is
provided under subsection (b), the DUAB shall place the school
corporation on the watch list under section 17 of this chapter.
SECTION 23. IC 20-19-7-13, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 13. (a) Upon the request of a school corporation
that is required to submit a corrective action plan, the executive
director DUAB and other appropriate state departments and agencies
shall:
(1) assist the school corporation in developing the corrective
SEA 327 — Concur 20
action plan; and
(2) provide technical assistance to the school corporation.
(b) The DUAB and any other state departments or agencies that
provide assistance to a school corporation under this section are not
responsible for implementing the corrective action plan.
SECTION 24. IC 20-19-7-14, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 14. The superintendent of a school
corporation that is required to submit a corrective action plan shall
update the governing body of the school corporation, as requested by
the governing body, concerning the implementation of the corrective
action plan submitted to the DUAB. The governing body of a school
corporation that is required to prepare a corrective action plan
may meet in executive session to receive the updates of the
superintendent. discuss all aspects of the corrective action plan,
including voting to approve a corrective action plan or
modifications under section 16 of this chapter.
SECTION 25. IC 20-19-7-15, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 15. The executive director DUAB shall meet at
least once every ninety (90) days with the school corporation's
superintendent, the president of the school corporation's governing
body, and (as necessary) other administrators of the school corporation
to discuss the corrective action plan and the school corporation's
progress in implementing the corrective action plan.
SECTION 26. IC 20-19-7-16, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 16. The following apply after a corrective
action plan is submitted to the DUAB:
(1) The DUAB may modify the corrective action plan at any time
if the DUAB determines that the modification is necessary.
(2) The superintendent or the governing body of the school
corporation may request the DUAB to modify the corrective
action plan, and the DUAB may make the requested modification.
If the superintendent of the school corporation makes the request,
the superintendent must notify the governing body of the school
corporation of the requested modification.
SECTION 27. IC 20-19-7-17, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 17. (a) The DUAB shall place the school
corporation on a watch list if:
(1) the executive director DUAB determines that the school
SEA 327 — Concur 21
corporation is not in compliance with the school corporation's
corrective action plan;
(2) the executive director DUAB notifies the superintendent and
governing body of the school corporation that:
(A) the school corporation is not in compliance with the school
corporation's corrective action plan; and
(B) the school corporation must achieve compliance with the
school corporation's corrective action plan within a period
specified by the executive director; DUAB; and
(3) the executive director DUAB determines that the school
corporation has not achieved compliance with the school
corporation's corrective action plan within the period specified in
subdivision (2).
(b) The DUAB shall place a school corporation on the watch list if
required by section 12(c) of this chapter.
(c) If the DUAB places a school corporation on the watch list under
this section, the executive director DUAB shall notify:
(1) the superintendent and governing body of the school
corporation; and
(2) the budget director.
(d) The state budget committee shall review the school corporation's
placement on the watch list.
SECTION 28. IC 20-19-7-18, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 18. (a) Notwithstanding any other law, all
reports, correspondence, and other records related to a school
corporation's corrective action plan, including the initial report reports
prepared by the executive director DUAB under section 10 of this
chapter and an assessment prepared under section 11 of this chapter,
and the placement of a school corporation on the watch list are
excepted from public disclosure under IC 5-14-3 or any other law at the
discretion of the DUAB or the school corporation unless and until the
school corporation is placed on the watch list and the state budget
committee has reviewed the school corporation's placement on the
watch list. If the DUAB or a school corporation discloses any reports,
correspondence, and other records related to a school corporation's
corrective action plan, including the initial report a report prepared by
the executive director DUAB under section 10 of this chapter and an
assessment prepared under section 11 of this chapter, to other state
agencies or officials public agencies or public officials prior to a
school corporation's placement on the watch list and review by the state
budget committee, these public agencies or public officials may not
SEA 327 — Concur 22
disclose the reports, correspondence, and other records, or the
information contained in those reports, correspondence, and other
records without the permission of the DUAB or the school
corporation.
(b) If the DUAB or a school corporation discloses to public
agencies or public officials that the school corporation was
required to submit a corrective action plan, the public agencies or
public officials may not disclose that information without the
permission of the DUAB or the school corporation.
(b) (c) The DUAB shall hold executive sessions to consider reports
related to a school corporation's corrective action plan, including the
initial report reports prepared by the executive director DUAB under
section 10 of this chapter and an assessment prepared under section 11
of this chapter, and to make final determinations required under
sections 10, 12, 16, and 17 of this chapter. The final determinations
required under sections 10, 12, 16, and 17 of this chapter shall be
made in executive session.
SECTION 29. IC 20-19-7-19, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 19. (a) The fiscal and qualitative indicators
committee shall DUAB may do the following each year:
(1) Review the fiscal and qualitative indicators used under this
chapter to evaluate the financial condition of school corporations.
(2) Determine if it is appropriate to change one (1) or more of the
fiscal and qualitative indicators.
(b) Before the fiscal and qualitative indicators committee DUAB
may change a fiscal or qualitative indicator, the fiscal and qualitative
indicators committee DUAB must first submit a report in an electronic
format to the state budget committee specifying the proposed change
in the fiscal or qualitative indicator.
SECTION 30. IC 20-19-7-20, AS ADDED BY P.L.213-2018(ss),
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 20. (a) The DUAB shall may do the following
each year:
(1) Review policies and procedures adopted under section 8 of
this chapter by the DUAB.
(2) Determine if it is appropriate to change one (1) or more of
those policies and procedures.
(b) Before the DUAB may change a policy or procedure adopted
under section 8 of this chapter, the DUAB must first submit a report in
an electronic format to the state budget committee specifying the
proposed change in the policy or procedure.
SEA 327 — Concur 23
SECTION 31. IC 20-23-8-5, AS AMENDED BY P.L.233-2015,
SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 5. As used in this chapter, "school corporation"
means a local public school corporation established under the laws of
Indiana. The term does not include a school corporation covered by
IC 20-23-12, IC 20-23-12.1, IC 20-23-17, or IC 20-23-17.2.
SECTION 32. IC 20-23-12-2, AS AMENDED BY P.L.104-2022,
SECTION 123, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2. As used in this chapter,
"school corporation" means a school corporation that is located in a city
having a population of more than sixty-nine thousand (69,000) and less
than sixty-nine thousand five hundred (69,500). was designated as a
distressed political subdivision in 2017 under IC 6-1.1-20.3-6.8(d).
SECTION 33. IC 20-23-12-3, AS AMENDED BY
P.L.213-2018(ss), SECTION 16, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The
emergency manager appointed by the distressed unit appeal board
under IC 6-1.1-20.3 shall act as the governing body of the school
corporation and has the powers set forth in IC 6-1.1-20.3-8.5, including
the powers and duties of the governing body of the school corporation
until the school corporation's status as a distressed political
subdivision is terminated under IC 6-1.1-20.3-13(b). The school
corporation shall also have an advisory board that consists of seven (7)
members elected as follows:
(1) On a nonpartisan basis.
(2) In a general election in the county.
The advisory board is created to provide nonbinding recommendations
to the emergency manager.
(b) Six (6) of the members shall be elected from the school districts
drawn under section 4 of this chapter. Each member:
(1) is elected from the school district in which the member
resides; and
(2) upon election and in conducting the business of the advisory
board, represents the interests of the entire school corporation.
(c) One (1) of the members elected:
(1) is the at-large member of the advisory board;
(2) may reside in any of the districts drawn under section 4 of this
chapter; and
(3) upon election and in conducting the business of the advisory
board, represents the interests of the entire school corporation.
(d) A per diem may not be paid to a member.
(e) The advisory board may hold a public meeting subject to the
SEA 327 — Concur 24
limits on the number of meetings set forth in IC 6-1.1-20.3-6.8(d). The
advisory board is subject to IC 5-14-1.5 (the open door law) for these
meetings. The advisory board may hold additional meetings that are
authorized as executive sessions under IC 5-14-1.5 (the open door law)
as provided in IC 5-14-1.5-6.1. The advisory board is subject to the
public notice requirements of IC 5-14-1.5 (the open door law) for these
additional meetings. The records of the advisory board are subject to
IC 5-14-3 (access to public records).
SECTION 34. IC 20-23-12-4 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 4. The districts are drawn on the same lines as the
common council districts referred to in IC 36-4-6-3.
SECTION 35. IC 20-23-12-5 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 5. (a) The six (6) members who are elected for a
position on the advisory board described under section 3(b) of this
chapter are determined as follows:
(1) Each prospective candidate must file a nomination petition
with the board of elections and registration not earlier than one
hundred four (104) days and not later than noon seventy-four (74)
days before the election at which the members are to be elected
that includes the following information:
(A) The name of the prospective candidate.
(B) The district in which the prospective candidate resides.
(C) The signatures of at least one hundred (100) registered
voters residing in the school corporation.
(D) The fact that the prospective candidate is running for a
district position.
(E) A certification that the prospective candidate meets the
qualifications for candidacy imposed by this chapter.
(2) Only eligible voters residing in the district may vote for a
candidate.
(3) The candidate within each district who receives the greatest
number of votes in the district is elected.
(b) The at-large member elected under section 3(c) of this chapter
is determined as follows:
(1) Each prospective candidate must file a nomination petition
with the clerk of the circuit court at least seventy-four (74) days
before the election at which the at-large member is to be elected.
The petition must include the following information:
(A) The name of the prospective candidate.
(B) The signatures of at least one hundred (100) registered
voters residing within the school corporation.
(C) The fact that the prospective candidate is running for the
SEA 327 — Concur 25
at-large position on the advisory board.
(D) A certification that the prospective candidate meets the
qualifications for candidacy imposed by this chapter.
(2) Only eligible voters residing in the school corporation may
vote for a candidate.
(3) The candidate who:
(A) runs for the at-large position on the advisory board; and
(B) receives the greatest number of votes in the school
corporation;
is elected to the at-large position.
SECTION 36. IC 20-23-12-6 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 6. (a) A candidate who runs for a position on the
advisory board described under section 3(b) of this chapter must reside
in the school corporation district for which the candidate filed.
(b) A candidate who runs for the at-large position on the advisory
board described in section 3(c) of this chapter must reside in the school
corporation.
SECTION 37. IC 20-23-12-7 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 7. The state board, with assistance from the county
election board, shall establish:
(1) balloting procedures under IC 3 for the election; and
(2) all other procedures required to implement this chapter.
SECTION 38. IC 20-23-12-8 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 8. (a) The term of each person elected to serve on the
advisory board is four (4) years.
(b) The term of each person elected to serve on the advisory board
begins on the date set in the school corporation's organization plan. The
date set in the organization plan for an elected member of the advisory
board to take office may not be more than fourteen (14) months after
the date of the member's election. If the school corporation's
organization plan does not set a date for an elected member of the
advisory board to take office, the member takes office January 1 that
immediately follows the person's election.
SECTION 39. IC 20-23-12-9 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 9. The members are elected as follows:
(1) Three (3) of the members elected under section 3(b) of this
chapter are elected at the general election to be held in 2020 and
every four (4) years thereafter.
(2) Three (3) of the members elected under section 3(b) of this
chapter are elected at the general election to be held in 2022 and
every four (4) years thereafter.
(3) The at-large member elected under section 3(c) of this chapter
SEA 327 — Concur 26
is elected at the general election to be held in 2024 and every four
(4) years thereafter.
SECTION 40. IC 20-23-12-10 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 10. (a) A vacancy on the advisory board is created
when:
(1) a member:
(A) dies;
(B) resigns from the advisory board;
(C) ceases to be a resident of the school corporation;
(D) fails to attend, except for reason of chronic illness, six (6)
regularly scheduled meetings of the advisory board in any
twelve (12) month period; or
(E) ceases to be a resident of the school district in which the
member was elected; or
(2) a vacancy is created under any other law.
(b) The advisory board shall temporarily fill a vacancy on the
advisory board as soon as practicable after the vacancy occurs.
SECTION 41. IC 20-23-12-11 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 11. Before August 1 of each year, the school
corporation shall file with the secretary of education a list of the:
(1) names and addresses of members of the school corporation's
advisory board;
(2) names and addresses of the school corporation's officers; and
(3) expiration dates of the terms of the school corporation's
members and officers.
The school corporation shall file any change in the list not later than
thirty (30) days after the change occurs.
SECTION 42. IC 20-23-12.1 IS ADDED TO THE INDIANA
CODE AS A NEW CHAPTER TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]:
Chapter 12.1. Appointment of Governing Body Members for
Gary Community School Corporation
Sec. 0.5. The general assembly recognizes the following:
(1) The Gary Community School Corporation has achieved
financial and operational stability.
(2) The Gary Community School Corporation is expected to
meet the conditions for termination of distressed status in the
near future.
(3) The Gary Community School Corporation no longer
requires special state oversight by the distressed unit appeal
board.
(4) That it is appropriate to transition to a new governing
SEA 327 — Concur 27
body.
(5) The state should continue to monitor and evaluate the
effectiveness of the governance structure.
Sec. 1. As used in this chapter, "school corporation" means the
Gary Community School Corporation.
Sec. 2. (a) The governing body of the Gary Community School
Corporation consists of the following five (5) members:
(1) One (1) member appointed by the executive of the city of
Gary. The member appointed under this subdivision must
reside within the boundaries of the Gary Community School
Corporation.
(2) One (1) member appointed by the common council of the
city of Gary. The member appointed under this subdivision
must reside within the boundaries of the Gary Community
School Corporation.
(3) Three (3) members appointed by the secretary of
education. Of the members appointed under this subdivision:
(A) at least one (1) member must reside within the
boundaries of the Gary Community School Corporation;
and
(B) at least one (1) member (in addition to the member
described in clause (A)) must reside in Lake County.
In appointing members under this subdivision, the secretary
of education may consider whether a candidate has
experience and expertise in kindergarten through grade 12
education, financial management, career development, or
higher education.
(b) The initial members appointed under subsection (a) shall
serve staggered terms beginning July 1, 2023, as follows:
(1) The initial member appointed under subsection (a)(1) must
be appointed for one (1) year.
(2) The initial member appointed under subsection (a)(2) must
be appointed for two (2) years.
(3) Two (2) of the initial members appointed under subsection
(a)(3) must be appointed for one (1) year.
(4) One (1) of the initial members appointed under subsection
(a)(3), who is not appointed to an initial term described in
subdivision (3), must be appointed for two (2) years.
(c) A member's term expires June 30 in the applicable year of
expiration. Thereafter, subject to subsection (d), each member
shall serve for a term of two (2) years. A member appointed under
subsection (a) may be reappointed to an unlimited number of
SEA 327 — Concur 28
successive terms.
(d) A member of the governing body serves at the pleasure of
the appointing authority of the member. Vacancies in the
appointments to the governing body shall be filled by the original
appointing authority in accordance with the term requirements
established in this section. An appointed member serves for the
remainder of an unexpired term.
(e) The chairperson of the governing body shall be appointed by
the secretary of education from the members appointed under
subsection (a).
Sec. 3. (a) The governing body appointed under section 2 of this
chapter shall serve in an advisory capacity to the distressed unit
appeal board and the emergency manager appointed by the
distressed unit appeal board under IC 6-1.1-20.3, until the later of:
(1) July 1, 2024; or
(2) a date on which the school corporation's status as a
distressed political subdivision is terminated.
(b) Notwithstanding subsection (a), the governing body
appointed under section 2 of this chapter may select a
superintendent or executive leader for the school corporation
whose employment would begin on the later of:
(1) July 1, 2024; or
(2) a date on which the school corporation's status as a
distressed political subdivision is terminated.
(c) Notwithstanding subsection (a), the governing body
appointed under section 2 of this chapter may vote to make the
appointments to the library board under IC 36-12-2-9(3).
Sec. 4. (a) On the later of:
(1) July 1, 2024; or
(2) the date on which the school corporation's status as a
distressed political subdivision is terminated;
the governing body appointed under section 2 of this chapter
assumes all the powers, rights, duties, and obligations of a
community school corporation as set forth in IC 20-23-4-26.
(b) For the purposes of annual budgeting, IC 6-1.1-17-20 does
not apply to the governing body. The governing body is considered
a governing body with the majority of members elected for the
purposes of annual budgeting.
Sec. 5. Not later than October 31, 2025, and each October 31
thereafter, the governing body shall submit to the distressed unit
appeal board a report summarizing the financial position and
operations of the school corporation for the previous state fiscal
SEA 327 — Concur 29
year. The report shall include any additional information
requested by the distressed unit appeal board and be in the form
specified by the distressed unit appeal board.
Sec. 6. Before July 1, 2026, the governing body shall also submit
a report to the distressed unit appeal board and the budget
committee. The report required by this section must address each
of the following topics:
(1) Finances.
(2) Operations.
(3) Academics.
(4) The effectiveness of the governance structure.
The distressed unit appeal board shall present the topics addressed
by the report to the budget committee before November 1, 2026.
SECTION 43. IC 20-40-2-0.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 0.2. As used in this chapter,
"DUAB" means the distressed unit appeal board established by
IC 6-1.1-20.3-4.
SECTION 44. IC 20-40-2-10, AS ADDED BY P.L.161-2019,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 10. (a) After the department completes the
school corporation notice requirement under section 9 of this chapter,
the department shall notify the state board, fiscal and qualitative
indicators committee, DUAB, and Indiana education employment
relations board as soon as possible of all school corporations that
received a notice stating they were on the excessive education fund
transfer list for the immediately preceding calendar year.
(b) Upon receipt of the department notice to a school corporation
under section 9 of this chapter, the school corporation's superintendent
and financial personnel, including the school's business officer, shall
prepare and submit explanatory documentation within ninety (90) days,
explaining the following:
(1) How and why the school corporation's leadership believes the
school corporation failed to meet the education fund transfer
target percentage.
(2) The steps the school corporation's leadership is planning or
actively taking to budget and spend during the next calendar year
to meet the education fund transfer target percentage for the next
calendar year.
(c) The school corporation's superintendent shall submit the
explanatory documentation to the department and the fiscal and
qualitative indicators committee. DUAB.
SEA 327 — Concur 30
(d) Upon submission of the explanatory documentation under
subsection (b), the school corporation's superintendent shall present the
explanatory documentation to the school corporation's governing body
at its next public meeting. The governing body shall enter both the
actual documentation and corresponding discussion into its official
minutes for that meeting.
(e) Upon the completion of the duties under subsection (d), the
school corporation shall publish the explanatory documentation
alongside any further notices and related reports from the department
on its Internet web site website within thirty (30) days.
(f) Upon receipt of a school corporation's explanatory
documentation, the fiscal and qualitative indicators committee DUAB
shall officially acknowledge receipt of the documentation at its next
public meeting and enter the receipt into its official minutes for that
meeting.
(g) Upon receipt of the explanatory documentation, the department,
in collaboration with the fiscal and qualitative indicators committee,
DUAB, shall review the documentation within sixty (60) days to make
a preliminary determination of whether the documentation
satisfactorily demonstrates that the school corporation's leadership has
outlined and begun a corrective action plan to make progress in
meeting the education fund transfer target percentage for the next
calendar year.
(h) If the department determines the explanatory documentation is
not satisfactory, the department may contact the superintendent and
financial personnel, including the school business officer, of the school
corporation to schedule as soon as possible an appearance before the
fiscal and qualitative indicators committee DUAB at a public meeting
to provide an opportunity to explain the details within the explanatory
documentation, and to explain to the fiscal and qualitative indicators
committee DUAB the school corporation's budgeting and
compensation levels in relation to the following for the school
corporation:
(1) How and why the education fund transfer target percentage
was not met during the previous calendar year.
(2) Total combined expenditures.
(3) Student instructional expenditures.
(4) Noninstructional expenditures.
(5) Full-time teacher compensation expenditures.
(6) Nonteaching, full-time administrative personnel compensation
expenditures.
(7) Nonteaching staff personnel compensation expenditures.
SEA 327 — Concur 31
(8) Any prior or planned attempts to seek the assistance available
under this chapter from the Indiana education employment
relations board and the department's division of finance.
(9) Any prior or planned pooling of resources, combined
purchases, usage of shared administrative services, or
collaboration with contiguous school corporations in reducing
noninstructional expenditures as described under IC 20-42.5-2-1.
(10) Any prior or planned participation in a county school safety
commission under IC 5-2-10.1-10 to assist and reduce school
safety expenditures.
(11) Any prior or planned consideration of meeting the
requirements of and applying for school corporation efficiency
incentive grants under IC 36-1.5-6.
(i) The fiscal and qualitative indicators committee DUAB may
contact the superintendent and financial personnel, including the
school's business officer, of a school corporation that has been included
on the department's excessive education fund transfer list for at least
two (2) immediately preceding calendar years to provide the school
corporation an opportunity to explain to the fiscal and qualitative
indicators committee DUAB in a public meeting the school
corporation's budgeting and compensation levels in relation to the
items listed in subsection (h).
(j) After the fiscal and qualitative indicators committee DUAB
receives the school corporation's explanation under this section, the
fiscal and qualitative indicators committee DUAB may issue an official
recommendation to the school corporation to perform a review and
improve its budgeting procedures in consultation with any state
agencies the fiscal and qualitative indicators committee DUAB
considers appropriate. The state agencies specified by the fiscal and
qualitative indicators committee DUAB shall assist the school
corporation before and during its next collective bargaining period with
the goal of meeting or making progress toward the education fund
transfer target percentage. If the fiscal and qualitative indicators
committee DUAB issues an official recommendation to a school
corporation, the school corporation's governing body shall officially
acknowledge receipt of the recommendation at its next public meeting
and enter into the school corporation governing body's minutes for that
meeting acknowledgment of receipt of the recommendation. In
addition, the school corporation shall publish the official
recommendation on the school corporation's Internet web site. website.
(k) The school corporation shall publish the most recent notices
from the department, relevant individual reports prepared by the
SEA 327 — Concur 32
department, explanatory documentation by the school corporation, and
official recommendations by the fiscal and qualitative indicators
committee DUAB on the school corporation's Internet web site.
website.
(l) The school corporation may remove the notice, its explanatory
documentation, and the fiscal and qualitative indicators committee's
DUAB's official recommendation from its Internet web site website if
the department determines that the school corporation met its education
fund transfer target percentage and is no longer on the excessive
education fund transfer list.
SECTION 45. IC 34-30-2.1-55, AS ADDED BY P.L.105-2022,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 55. IC 6-1.1-20.3-7.5 (Concerning an act or
omission of a fiscal management board member, an emergency
manager, a chief financial officer, or a chief academic officer within
the scope of and arising out of the performance of prescribed duties in
a distressed political subdivision).
SECTION 46. IC 36-12-2-9, AS AMENDED BY P.L.114-2015,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 9. Except as provided in section 15 of this chapter
and subject to IC 20-23-12.1-3(c) and section 16 of this chapter, seven
(7) members of a library board shall be appointed as follows:
(1) One (1) member appointed by the executive of the county in
which the library district is located, or if the district is located in
more than one (1) county, jointly by the executives of the
respective counties.
(2) One (1) member appointed by the fiscal body of the county in
which the library district is located, or if the district is located in
more than one (1) county, jointly by the fiscal bodies of the
respective counties.
(3) Three (3) members appointed by the school board of the
school corporation serving the library district. However, if there
is more than one (1) school corporation serving the library
district:
(A) two (2) members shall be appointed by the school board
of the school corporation in which the principal administrative
offices of the public library are located; and
(B) one (1) member shall be appointed by a majority vote of
the presidents of the school boards of the other school
corporations.
(4) One (1) member appointed under section 10(1), 11(b)(1),
12(1), 13(a)(1), 13(b)(1), or 14(1) of this chapter, as applicable.
SEA 327 — Concur 33
(5) One (1) member appointed under section 10(2), 11(b)(2),
12(2), 13(a)(2), 13(b)(2), or 14(2) of this chapter, as applicable.
SECTION 47. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "emergency manager" refers to the emergency
manager for the Gary School Corporation appointed under
IC 6-1.1-20.3-7.5.
(b) If approved by the distressed unit appeal board, the rainy
day fund transfer limitations under IC 36-1-8-5.1(d)(2)(B)(ii) and
IC 36-1-8-5.1(d)(2)(B)(iii) do not apply to the emergency manager.
(c) This SECTION expires July 1, 2024.
SECTION 48. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "advisory board" refers to the Gary Community
School Corporation advisory board established under
IC 20-23-12-3, before its repeal by this act.
(b) As used in this SECTION, "governing body" refers to the
governing body appointed by the secretary of education under
IC 20-23-12.1-2, as added by this act.
(c) The terms of the members of the advisory board expire upon
passage of this act.
(d) The term of the member appointed to the fiscal management
board under IC 6-1.1-20.3-6.8(g)(1), before its amendment by this
act, expires upon passage of this act.
(e) Before July 1, 2023, the secretary of education shall appoint
the initial members to the governing body in the manner
prescribed by IC 20-23-12.1-2, as added by this act.
(f) The initial terms for members of the governing body
appointed as described in subsection (e) begin July 1, 2023.
(g) This SECTION expires July 1, 2026.
SECTION 49. An emergency is declared for this act.
SEA 327 — Concur President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
SEA 327 — Concur