Indiana 2023 Regular Session

Indiana Senate Bill SB0436 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 436
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 4-6-2-1.5; IC 5-9-4; IC 6-1.1-20.3; IC 20-23;
7	7	IC 20-29-2-6.
8	8	Synopsis: Gary Community School Corporation. Terminates the Gary
9	9	Community School Corporation's (school corporation) status as a
10	10	distressed political subdivision on June 30, 2024. Provides that the
11	11	members of the governing body of the school corporation shall be
12	12	elected at the municipal general election held on November 7, 2023,
13	13	and take office upon taking the oath required by the Constitution of the
14	14	State of Indiana not later than November 14, 2023. Requires the
15	15	governing body to select a superintendent not later than February 1,
16	16	2024. Requires the emergency manager and chief financial officer to
17	17	consistently inform the superintendent of the school corporation
18	18	regarding the day to day operations of the school corporation. Requires
19	19	the emergency manager to provide monthly financial and academic
20	20	reports to the governing body. Provides that the current emergency
21	21	manager's appointment terminates on June 30, 2024. Provides that the
22	22	elected governing body assumes all powers, rights, duties, and
23	23	obligations of the school corporation on July 1, 2024. Provides that,
24	24	before the governing body sells real property, a building, or another
25	25	structure owned by the school corporation, the governing body shall:
26	26	(1) provide written notice to the mayor of the city of Gary at least 30
27	27	days before selling the real property, building, or other structure; and
28	28	(2) provide public notice and hold at least one public hearing within the
29	29	geographic boundaries of the school corporation to hear public
30	30	testimony on the proposed sale. Transfers, not later than July 1, 2023,
31	31	to the common school fund from the state general fund an amount
32	32	sufficient to pay off all debts from advances and loans that were made
33	33	to the school corporation from the common school fund. Removes or
34	34	repeals provisions regarding the establishment and use of a school
35	35	improvement fund.
36	36	Effective: Upon passage; July 1, 2023.
37	37	Melton
38	38	January 19, 2023, read first time and referred to Committee on Appropriations.
39	39	2023 IN 436—LS 7466/DI 110 Introduced
40	40	First Regular Session of the 123rd General Assembly (2023)
41	41	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
42	42	Constitution) is being amended, the text of the existing provision will appear in this style type,
43	43	additions will appear in this style type, and deletions will appear in this style type.
44	44	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
45	45	provision adopted), the text of the new provision will appear in this style type. Also, the
46	46	word NEW will appear in that style type in the introductory clause of each SECTION that adds
47	47	a new provision to the Indiana Code or the Indiana Constitution.
48	48	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
49	49	between statutes enacted by the 2022 Regular Session of the General Assembly.
50	50	SENATE BILL No. 436
51	51	A BILL FOR AN ACT to amend the Indiana Code concerning
52	52	education.
53	53	Be it enacted by the General Assembly of the State of Indiana:
54	54	1 SECTION 1. IC 4-6-2-1.5, AS AMENDED BY P.L.163-2020,
55	55	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
56	56	3 UPON PASSAGE]: Sec. 1.5. (a) Whenever any state governmental
57	57	4 official or employee, whether elected or appointed, is made a party to
58	58	5 a suit, and the attorney general determines that said suit has arisen out
59	59	6 of an act which such official or employee in good faith believed to be
60	60	7 within the scope of the official's or employee's duties as prescribed by
61	61	8 statute or duly adopted regulation, the attorney general shall defend
62	62	9 such person throughout such action.
63	63	10 (b) Whenever a teacher (as defined in IC 20-18-2-22) is made a
64	64	11 party to a civil suit, and the attorney general determines that the suit
65	65	12 has arisen out of an act that the teacher in good faith believed was
66	66	13 within the scope of the teacher's duties in enforcing discipline policies
67	67	14 developed under IC 20-33-8-12, the attorney general shall defend the
68	68	15 teacher throughout the action.
69	69	16 (c) Not later than July 30 of each year, the attorney general, in
70	70	17 consultation with the Indiana education employment relations board
71	71	2023 IN 436—LS 7466/DI 110 2
72	72	1 established in IC 20-29-3-1, shall draft and disseminate a letter by first
73	73	2 class mail to the residence of teachers providing a summary of the
74	74	3 teacher's rights and protections under state and federal law, including
75	75	4 a teacher's rights and protections relating to the teacher's performance
76	76	5 evaluation under IC 20-28-11.5.
77	77	6 (d) The department of education, in consultation with the Indiana
78	78	7 education employment relations board, shall develop a method to
79	79	8 provide the attorney general with the names and addresses of active
80	80	9 teachers in Indiana in order for the attorney general to disseminate the
81	81	10 letter described in subsection (c). Names and addresses collected and
82	82	11 provided to the attorney general under this subsection are confidential
83	83	12 and excepted from public disclosure as provided in IC 5-14-3-4.
84	84	13 (e) Whenever a school corporation (as defined in IC 20-26-2-4) is
85	85	14 made a party to a civil suit and the attorney general determines that the
86	86	15 suit has arisen out of an act authorized under IC 20-30-5-0.5 or
87	87	16 IC 20-30-5-4.5, the attorney general shall defend the school corporation
88	88	17 throughout the action.
89	89	18 (f) Whenever a member of the fiscal management board appointed
90	90	19 under IC 6-1.1-20.3-6.8 is made a party to a civil suit and the attorney
91	91	20 general determines that the suit has arisen out of an act by the fiscal
92	92	21 management board member that is authorized or required under
93	93	22 IC 6-1.1-20.3 or any other law, the attorney general shall defend the
94	94	23 fiscal management board member throughout the action. This
95	95	24 subsection expires November 8, 2023.
96	96	25 (g) As used in this subsection, "bridge authority" refers to the New
97	97	26 Harmony and Wabash River bridge authority established by
98	98	27 IC 8-16-15.5-2. Whenever:
99	99	28 (1) the bridge authority;
100	100	29 (2) a member of the bridge authority;
101	101	30 (3) an officer of the bridge authority; or
102	102	31 (4) an employee of the bridge authority;
103	103	32 is made a party to a civil suit and the attorney general determines that
104	104	33 the suit has arisen out of an act or omission of any person described in
105	105	34 subdivision (1), (2), (3), or (4), that is authorized or required under
106	106	35 IC 8-16-15.5 or any other law, the attorney general shall defend that
107	107	36 person throughout the action.
108	108	37 (h) A determination by the attorney general under subsection (a),
109	109	38 (b), (e), (f), or (g) shall not be admitted as evidence in the trial of any
110	110	39 such civil action for damages.
111	111	40 (i) Nothing in this chapter shall be construed to deprive any such
112	112	41 person of the person's right to select counsel of the person's own choice
113	113	42 at the person's own expense.
114	114	2023 IN 436—LS 7466/DI 110 3
115	115	1 SECTION 2. IC 5-9-4-7, AS AMENDED BY P.L.2-2014,
116	116	2 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
117	117	3 UPON PASSAGE]: Sec. 7. (a) Except as provided in subsection (b) or
118	118	4 (c), an officeholder who elects to take the leave of absence described
119	119	5 in section 6 of this chapter shall give written notice that the
120	120	6 officeholder is taking a leave of absence for military service to the
121	121	7 person or entity designated in IC 5-8-3.5-1 to receive a resignation for
122	122	8 the office the officeholder holds.
123	123	9 (b) An officeholder who is:
124	124	10 (1) a justice of the supreme court, a judge of the court of appeals,
125	125	11 or a judge of the tax court; or
126	126	12 (2) a judge of a circuit, city, probate, or superior court;
127	127	13 shall give the written notice required by subsection (a) to the clerk of
128	128	14 the supreme court.
129	129	15 (c) An officeholder who holds a school board office shall give the
130	130	16 written notice required by subsection (a) to the person or entity
131	131	17 designated in IC 20-25-3, IC 20-25-4, IC 20-25-5, IC 20-23-12 (before
132	132	18 its expiration), IC 20-23-12.1, IC 20-23-14, IC 20-23-15, IC 20-23-4,
133	133	19 or IC 20-26 to receive a resignation for the office the officeholder
134	134	20 holds.
135	135	21 (d) The written notice required by subsection (a) must state that the
136	136	22 officeholder is taking a leave of absence because the officeholder:
137	137	23 (1) has been called for active duty in:
138	138	24 (A) the armed forces of the United States; or
139	139	25 (B) the national guard; and
140	140	26 (2) will be temporarily unable to perform the duties of the
141	141	27 officeholder's office.
142	142	28 SECTION 3. IC 5-9-4-8, AS AMENDED BY P.L.74-2017,
143	143	29 SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
144	144	30 UPON PASSAGE]: Sec. 8. (a) Except as provided in subsection (b)
145	145	31 and IC 36-5-6-9, during the officeholder's leave of absence, the
146	146	32 officeholder's office must be filled by a temporary appointment made
147	147	33 under:
148	148	34 (1) IC 3-13-4;
149	149	35 (2) IC 3-13-5;
150	150	36 (3) IC 3-13-6;
151	151	37 (4) IC 3-13-7;
152	152	38 (5) IC 3-13-8;
153	153	39 (6) IC 3-13-9;
154	154	40 (7) IC 3-13-10;
155	155	41 (8) IC 3-13-11;
156	156	42 (9) IC 20-23-4;
157	157	2023 IN 436—LS 7466/DI 110 4
158	158	1 (10) IC 20-26;
159	159	2 (11) IC 20-23-12 (before its expiration);
160	160	3 (12) IC 20-23-12.1;
161	161	4 (12) (13) IC 20-23-14;
162	162	5 (13) (14) IC 20-23-15;
163	163	6 (14) (15) IC 20-23-17;
164	164	7 (15) (16) IC 20-23-17.2;
165	165	8 (16) (17) IC 20-25-3;
166	166	9 (17) (18) IC 20-25-4; or
167	167	10 (18) (19) IC 20-25-5;
168	168	11 in the same manner as a vacancy created by a resignation is filled. A
169	169	12 temporary appointment may be made in accordance with the applicable
170	170	13 statute after the written notice required under section 7 of this chapter
171	171	14 has been filed.
172	172	15 (b) For an officeholder who:
173	173	16 (1) is:
174	174	17 (A) a justice of the supreme court, a judge of the court of
175	175	18 appeals, or a judge of the tax court; or
176	176	19 (B) a judge of a circuit, city, probate, or superior court; and
177	177	20 (2) is taking a leave of absence under this chapter;
178	178	21 the supreme court shall appoint a judge pro tempore to fill the
179	179	22 officeholder's office in accordance with the court's rules and
180	180	23 procedures.
181	181	24 (c) The person selected or appointed under subsection (a) or (b)
182	182	25 serves until the earlier of:
183	183	26 (1) the date the officeholder's leave of absence ends as provided
184	184	27 in section 10 of this chapter; or
185	185	28 (2) the officeholder's term of office expires.
186	186	29 (d) The person selected or appointed to an office under subsection
187	187	30 (a) or (b):
188	188	31 (1) assumes all the rights and duties of; and
189	189	32 (2) is entitled to the compensation established for;
190	190	33 the office for the period of the temporary appointment.
191	191	34 SECTION 4. IC 6-1.1-20.3-6.8, AS AMENDED BY P.L.43-2021,
192	192	35 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
193	193	36 UPON PASSAGE]: Sec. 6.8. (a) This section applies only to the Gary
194	194	37 Community School Corporation.
195	195	38 (b) The general assembly finds that the provisions of this section:
196	196	39 (1) are necessary to address the unique issues faced by the Gary
197	197	40 Community School Corporation; and
198	198	41 (2) are not precedent for and may not be appropriate for
199	199	42 addressing issues faced by other school corporations.
200	200	2023 IN 436—LS 7466/DI 110 5
201	201	1 (c) As used in this section, the following definitions apply:
202	202	2 (1) "Chief academic officer" means the chief academic officer
203	203	3 appointed under subsection (j). (k).
204	204	4 (2) "Chief financial officer" means the chief financial officer
205	205	5 appointed under subsection (i).
206	206	6 (3) "School corporation" refers to the Gary Community School
207	207	7 Corporation.
208	208	8 (d) The Gary Community School Corporation is designated as a
209	209	9 distressed political subdivision for purposes of this chapter until the
210	210	10 school corporation's designation as a distressed political subdivision is
211	211	11 terminated as provided in section 13(b) of this chapter. on June 30,
212	212	12 2024. This designation as a distressed political subdivision is effective
213	213	13 regardless of whether the school corporation has submitted a petition
214	214	14 requesting to be designated as a distressed political subdivision. Until
215	215	15 the school corporation's designation as a distressed political
216	216	16 subdivision is terminated as provided in section 13(b) of this chapter,
217	217	17 The Gary Community School Corporation advisory board (before its
218	218	18 expiration) may not hold a public meeting more often than once every
219	219	19 three (3) months. This limit on the number of meetings of the advisory
220	220	20 board does not apply to the emergency manager. The emergency
221	221	21 manager shall hold a monthly forum to provide an update on the Gary
222	222	22 Community School Corporation within the school district that is open
223	223	23 to the general public. During the period that the Gary Community
224	224	24 School Corporation is designated as a distressed political subdivision,
225	225	25 Until November 8, 2023, the advisory board may vote to:
226	226	26 (1) fill vacancies;
227	227	27 (2) select officers; or
228	228	28 (3) make appointments;
229	229	29 of the advisory board, and to present awards, recognition, and
230	230	30 certificates to employees or supporters of the school corporation.
231	231	31 (e) Until the school corporation's designation as a distressed
232	232	32 political subdivision is terminated as provided in section 13(b) of this
233	233	33 chapter, June 30, 2024, the following apply to the emergency manager
234	234	34 appointed under section 7.5 of this chapter for the school corporation:
235	235	35 (1) The emergency manager has the powers and duties specified
236	236	36 in this chapter.
237	237	37 (2) The emergency manager shall consider recommendations
238	238	38 from the fiscal management board (before its expiration) and the
239	239	39 advisory board (before its expiration), but the emergency
240	240	40 manager has full responsibility and authority related to financial
241	241	41 and academic matters of the school corporation. and the
242	242	42 emergency manager may act, as specified in this chapter, on these
243	243	2023 IN 436—LS 7466/DI 110 6
244	244	1 financial and academic matters without the approval of the fiscal
245	245	2 management board or the advisory board.
246	246	3 (3) Notwithstanding section 7.5(d) of this chapter, the distressed
247	247	4 unit appeal board shall:
248	248	5 (A) determine the compensation of the emergency manager,
249	249	6 chief financial officer, and chief academic officer; and
250	250	7 (B) subject to subsections (i) and (j), (k), pay the emergency
251	251	8 manager's, chief financial officer's, and chief academic
252	252	9 officer's compensation and reimburse the emergency manager,
253	253	10 chief financial officer, and chief academic officer for actual
254	254	11 and necessary expenses from funds appropriated to the
255	255	12 distressed unit appeal board.
256	256	13 (4) Before appointing the emergency manager, the distressed unit
257	257	14 appeal board shall interview at least one (1) resident of the city of
258	258	15 Gary as a candidate for the position. If the distressed unit appeal
259	259	16 board is not able to interview a resident of the city of Gary as a
260	260	17 candidate for the position, the distressed unit appeal board shall
261	261	18 interview at least one (1) individual who is a resident of Lake
262	262	19 County or northwest Indiana as a candidate for the position.
263	263	20 (5) The emergency manager shall do the following:
264	264	21 (A) After January 31, 2024, consistently inform the
265	265	22 superintendent of the school corporation regarding the day
266	266	23 to day operations of the school corporation.
267	267	24 (B) After November 7, 2023, provide monthly reports to
268	268	25 the governing body of the school corporation regarding
269	269	26 academic and financial matters of the school corporation.
270	270	27 The appointment of the emergency manager for the school corporation
271	271	28 is terminated on the date the school corporation's designation as a
272	272	29 distressed political subdivision is terminated as provided in section
273	273	30 13(b) of this chapter. June 30, 2024. The distressed unit appeal
274	274	31 board shall not renew or enter into a new contract under this
275	275	32 subsection with an emergency manager.
276	276	33 (f) In addition to any other actions that the distressed unit appeal
277	277	34 board may take under this chapter concerning a distressed political
278	278	35 subdivision, for a distressed school corporation, the distressed unit
279	279	36 appeal board may also do any of the following:
280	280	37 (1) The distressed unit appeal board may delay or suspend, for a
281	281	38 period determined by the board, any payments of principal or
282	282	39 interest, or both, that would otherwise be due from the school
283	283	40 corporation on loans or advances from the common school fund.
284	284	41 (2) The distressed unit appeal board may recommend to the state
285	285	42 board of finance that the state board of finance make an interest
286	286	2023 IN 436—LS 7466/DI 110 7
287	287	1 free loan to the school corporation from the common school fund.
288	288	2 The distressed unit appeal board shall determine the payment
289	289	3 schedule and the commencement date for the loan. If the
290	290	4 distressed unit appeal board makes a recommendation that such
291	291	5 a loan be made, the state board of finance may, notwithstanding
292	292	6 IC 20-49, make such a loan for a term of not more than ten (10)
293	293	7 years.
294	294	8 (3) The distressed unit appeal board may establish benchmarks of
295	295	9 financial improvement for the school corporation.
296	296	10 (4) The distressed unit appeal board may provide a grant or grants
297	297	11 to the school corporation from funds appropriated to the
298	298	12 distressed unit appeal board, in amounts determined by the
299	299	13 distressed unit appeal board, to assist the school corporation in
300	300	14 overcoming short term financial problems.
301	301	15 (5) The distressed unit appeal board may make a recommendation
302	302	16 to the general assembly concerning the possible restructuring of
303	303	17 advances made to the school corporation from the common school
304	304	18 fund, including forgiveness of principal and interest on those
305	305	19 advances.
306	306	20 (g) The fiscal management board is established. The fiscal
307	307	21 management board consists of the following members:
308	308	22 (1) One (1) member appointed by the advisory board.
309	309	23 (2) One (1) member appointed by the mayor of the city of Gary.
310	310	24 (3) One (1) member, who must have experience working with or
311	311	25 for an urban school corporation, appointed by the secretary of
312	312	26 education.
313	313	27 (4) One (1) member, who must have experience working with or
314	314	28 for an urban school corporation, appointed by the state board of
315	315	29 education.
316	316	30 This subsection expires November 8, 2023.
317	317	31 (h) The following apply to the fiscal management board and to the
318	318	32 members of the fiscal management board:
319	319	33 (1) The term of office of a member of the fiscal management
320	320	34 board is four (4) years, beginning on the date of appointment. A
321	321	35 member of the fiscal management board may be reappointed to
322	322	36 the fiscal management board. A member of the fiscal
323	323	37 management board may be removed for cause by the appointing
324	324	38 authority.
325	325	39 (2) A member of the fiscal management board must have the
326	326	40 following:
327	327	41 (A) At least three (3) years experience in financial
328	328	42 management.
329	329	2023 IN 436—LS 7466/DI 110 8
330	330	1 (B) A meaningful background and work experience in finance
331	331	2 and business.
332	332	3 (C) An understanding of government contracts.
333	333	4 (D) Knowledge and experience in organizational effectiveness,
334	334	5 operations management, and implementing best practices.
335	335	6 (E) Experience in budget development and oversight.
336	336	7 (F) A demonstrated commitment to high professional and
337	337	8 ethical standards and a diverse workplace.
338	338	9 (G) An understanding of tax and other compliance
339	339	10 implications.
340	340	11 (3) A member of the advisory board may not serve as a member
341	341	12 of the fiscal management board.
342	342	13 (4) The fiscal management board:
343	343	14 (A) shall make recommendations to the emergency manager;
344	344	15 and
345	345	16 (B) shall advise the emergency manager as requested by the
346	346	17 emergency manager.
347	347	18 (5) The members of the fiscal management board are not entitled
348	348	19 to any compensation for their service on the fiscal management
349	349	20 board.
350	350	21 (6) The fiscal management board is abolished, and the terms of
351	351	22 the members of the fiscal management board are terminated, on
352	352	23 the date the school corporation's designation as a distressed
353	353	24 political subdivision is terminated as provided in section 13(b) of
354	354	25 this chapter. this section.
355	355	26 (7) Under the supervision of the emergency manager, the fiscal
356	356	27 management board shall serve as a liaison to and shall work
357	357	28 jointly with the distressed unit appeal board, the mayor of the city
358	358	29 of Gary, and the department of education to develop a transition
359	359	30 plan to address issues or questions related to:
360	360	31 (A) the designation of the school corporation as a distressed
361	361	32 political subdivision and the transfer of powers and duties to
362	362	33 the emergency manager under this chapter; and
363	363	34 (B) the potential impact of the transition on the community
364	364	35 and the school corporation.
365	365	36 (8) Under the supervision of the emergency manager, the fiscal
366	366	37 management board shall work jointly with the distressed unit
367	367	38 appeal board, the mayor of the city of Gary, and the department
368	368	39 of education to provide information on a regular basis to parents,
369	369	40 students, employees of the school corporation, and the public on
370	370	41 the status of the transition.
371	371	42 This subsection expires November 8, 2023.
372	372	2023 IN 436—LS 7466/DI 110 9
373	373	1 (i) The emergency manager shall employ a chief financial officer for
374	374	2 the school corporation. The chief financial officer is an employee of the
375	375	3 school corporation. The chief financial officer shall report to the
376	376	4 emergency manager and shall assist the emergency manager appointed
377	377	5 for the school corporation and the fiscal management board in carrying
378	378	6 out the day to day financial operations of the school corporation. Before
379	379	7 July 1, 2019, the compensation of the chief financial officer shall be
380	380	8 determined by the distressed unit appeal board. Before July 1, 2019, the
381	381	9 compensation of the chief financial officer shall be paid from the funds
382	382	10 appropriated to the distressed unit appeal board. After June 30, 2019,
383	383	11 the compensation of the chief financial officer shall be determined by
384	384	12 and paid by the school corporation. The chief financial officer:
385	385	13 (1) must possess, through both education and experience, an
386	386	14 understanding of finance and financial management; and
387	387	15 (2) must possess any other experience and must meet any other
388	388	16 requirements as required by the distressed unit appeal board to
389	389	17 ensure that the chief financial officer is qualified to carry out the
390	390	18 financial restructuring of the school corporation.
391	391	19 Before employing a chief financial officer under this subsection, the
392	392	20 emergency manager shall interview at least one (1) resident of the city
393	393	21 of Gary as a candidate for the position. If the emergency manager is not
394	394	22 able to interview a resident of the city of Gary as a candidate for the
395	395	23 position, the emergency manager shall interview at least one (1)
396	396	24 individual who is a resident of Lake County or northwest Indiana as a
397	397	25 candidate for the position.
398	398	26 (j) After January 31, 2024, the chief financial officer employed
399	399	27 under subsection (i) shall consistently inform the superintendent of
400	400	28 the school corporation regarding the day to day operations of the
401	401	29 school corporation.
402	402	30 (j) (k) The emergency manager shall employ a chief academic
403	403	31 officer for the school corporation, after consultation with the
404	404	32 department of education, who must have experience working with or
405	405	33 for an urban school corporation. The chief academic officer is an
406	406	34 employee of the school corporation. The chief academic officer shall
407	407	35 report to the emergency manager and shall assist the emergency
408	408	36 manager appointed for the school corporation and the fiscal
409	409	37 management board (before its expiration) in carrying out the
410	410	38 academic matters of the school corporation. Before July 1, 2019, the
411	411	39 compensation of the chief academic officer shall be determined by the
412	412	40 distressed unit appeal board. Before July 1, 2019, the compensation of
413	413	41 the chief academic officer shall be paid from the funds appropriated to
414	414	42 the distressed unit appeal board. After June 30, 2019, the compensation
415	415	2023 IN 436—LS 7466/DI 110 10
416	416	1 of the chief academic officer shall be determined by and paid by the
417	417	2 school corporation. The chief academic officer must:
418	418	3 (1) hold a valid license to teach in a public school under
419	419	4 IC 20-28-5;
420	420	5 (2) possess, through both education and experience, an
421	421	6 understanding of curriculum and academics; and
422	422	7 (3) possess any other experience and meet any other requirements
423	423	8 as required by the distressed unit appeal board to ensure that the
424	424	9 chief academic officer is qualified to carry out the academic goals
425	425	10 of the school corporation.
426	426	11 Before employing a chief academic officer under this subsection, the
427	427	12 emergency manager shall interview at least one (1) resident of the city
428	428	13 of Gary as a candidate for the position. If the emergency manager is not
429	429	14 able to interview a resident of the city of Gary as a candidate for the
430	430	15 position, the emergency manager shall interview at least one (1)
431	431	16 individual who is a resident of Lake County or northwest Indiana as a
432	432	17 candidate for the position.
433	433	18 (k) (l) The chief financial officer and chief academic officer shall
434	434	19 assist the emergency manager in carrying out the emergency manager's
435	435	20 duties under this chapter.
436	436	21 (l) (m) The annual budget adopted by the emergency manager for
437	437	22 the school corporation must dedicate a significant part of the school
438	438	23 corporation's budget to eliminating the school corporation's outstanding
439	439	24 financial obligations. The emergency manager shall attempt to
440	440	25 negotiate with the creditors of the school corporation to establish a plan
441	441	26 specifying the schedule for paying each creditor. The emergency
442	442	27 manager shall submit the plan to the distressed unit appeal board for
443	443	28 approval. The distressed unit appeal board must:
444	444	29 (1) review the plan submitted by the emergency manager; and
445	445	30 (2) not later than sixty (60) days after the plan is submitted,
446	446	31 either:
447	447	32 (A) approve the plan as submitted by the emergency manager;
448	448	33 or
449	449	34 (B) modify the plan as submitted by the emergency manager
450	450	35 and then approve the modified plan.
451	451	36 (m) (n) The emergency manager shall consider any
452	452	37 recommendations from the following:
453	453	38 (1) The fiscal management board, the advisory board, and the
454	454	39 mayor of the city of Gary in developing the school corporation's
455	455	40 annual budget for the 2023-2024 state fiscal year.
456	456	41 (2) Beginning with the budget for the 2024-2025 state fiscal
457	457	42 year, the governing body of the school corporation, the
458	458	2023 IN 436—LS 7466/DI 110 11
459	459	1 superintendent of the school corporation, and the mayor of
460	460	2 the city of Gary in developing the school corporation's annual
461	461	3 budget.
462	462	4 The distressed unit appeal board must review and approve the school
463	463	5 corporation's annual budget that is proposed by the emergency
464	464	6 manager. When the emergency manager submits the school
465	465	7 corporation's proposed annual budget to the distressed unit appeal
466	466	8 board, the emergency manager shall provide copies of the proposed
467	467	9 annual budget to the fiscal management board (before its expiration)
468	468	10 and the advisory board (before its expiration).
469	469	11 (n) (o) After considering any recommendations from the fiscal
470	470	12 management board, the advisory board, and the mayor of the city of
471	471	13 Gary, as described in subsection (n), the emergency manager shall do
472	472	14 the following:
473	473	15 (1) Conduct a financial and compliance audit of the operations of
474	474	16 the school corporation.
475	475	17 (2) Develop a written financial plan for the school corporation.
476	476	18 The object of the plan must be to achieve financial stability for
477	477	19 the school corporation, and the plan must include provisions for
478	478	20 paying all of the school corporation's outstanding obligations and
479	479	21 for paying all future obligations of the school corporation
480	480	22 (including any federal, state, or local taxes or assessments) in a
481	481	23 timely manner.
482	482	24 (o) (p) In addition to the report required by section 8.5(c)(5) of this
483	483	25 chapter, the emergency manager, the chief financial officer, and the
484	484	26 chief academic officer shall report quarterly to the distressed unit
485	485	27 appeal board in a format specified by the distressed unit appeal board.
486	486	28 The report must include:
487	487	29 (1) information concerning the actions that the school corporation
488	488	30 is taking to improve the financial condition of the school
489	489	31 corporation; and
490	490	32 (2) any other information required by the distressed unit appeal
491	491	33 board.
492	492	34 The emergency manager shall report more frequently than quarterly if
493	493	35 requested by the distressed unit appeal board.
494	494	36 (q) The emergency manager shall provide copies of the report to the
495	495	37 following:
496	496	38 (1) Before November 7, 2023, the fiscal management board, the
497	497	39 advisory board, and the mayor of the city of Gary.
498	498	40 (2) After November 7, 2023, the governing body of the school
499	499	41 corporation, the superintendent of the school corporation
500	500	42 after the superintendent is selected, and the mayor of the city
501	501	2023 IN 436—LS 7466/DI 110 12
502	502	1 of Gary.
503	503	2 The emergency manager shall present each report at a public meeting.
504	504	3 of the fiscal management board.
505	505	4 (p) (r) The school corporation shall do the following:
506	506	5 (1) Publish a copy of each report under subsection (o) (p) on the
507	507	6 school corporation's Internet web site, website, along with a link
508	508	7 to the main page of the Indiana transparency Internet web site
509	509	8 website established under IC 5-14-3.7 to provide access to
510	510	9 financial data for local schools.
511	511	10 (2) Make copies of each report available free of charge to the
512	512	11 public upon request.
513	513	12 (3) Provide copies of each report to the mayor of the city of Gary.
514	514	13 The mayor shall make copies of the reports available free of
515	515	14 charge to the public upon request.
516	516	15 (q) (s) The chief academic officer shall develop an education plan
517	517	16 to provide academic services to students in the school corporation and
518	518	17 to achieve academic progress. The education plan must include at least
519	519	18 the following components:
520	520	19 (1) An academic program designed to meet Indiana's academic
521	521	20 standards and to assist students in meeting those academic
522	522	21 standards.
523	523	22 (2) A plan to improve the academic performance of all students,
524	524	23 including improvement in the performance of students on
525	525	24 standardized tests.
526	526	25 (3) A plan to engage parents in school performance and school
527	527	26 activities, including regular meetings at each school involving
528	528	27 administrators, teachers, parents, and interested members of the
529	529	28 community.
530	530	29 (4) A plan to implement performance standards that will attract
531	531	30 students and families to the school corporation.
532	532	31 (5) A plan specifying how the school corporation will work
533	533	32 directly with the city of Gary:
534	534	33 (A) to make the schools a successful component of life within
535	535	34 the city; and
536	536	35 (B) to develop a sense of pride and progress in the operations
537	537	36 and accomplishments of the school corporation.
538	538	37 Until November 8, 2023, the chief financial officer and the chief
539	539	38 academic officer shall submit a report to the advisory board each
540	540	39 quarter. The chief financial officer and chief academic officer shall
541	541	40 meet at least quarterly with the executive committee of the bargaining
542	542	41 unit to inform the executive committee of the academic progress of the
543	543	42 school corporation.
544	544	2023 IN 436—LS 7466/DI 110 13
545	545	1 (t) This section expires July 1, 2024.
546	546	2 SECTION 5. IC 6-1.1-20.3-17 IS REPEALED [EFFECTIVE JULY
547	547	3 1, 2023]. Sec. 17. (a) If the distressed unit appeal board delays or
548	548	4 suspends, for a period determined by the board, any payments on loans
549	549	5 or advances from the common school fund under section 6.8 of this
550	550	6 chapter, the distressed unit appeal board may recommend to the state
551	551	7 board of finance that the term of the loans or advances be extended. If
552	552	8 the distressed unit appeal board makes a recommendation to extend the
553	553	9 term of the loan or advances, the state board of finance may extend the
554	554	10 term of the loans or advances for a period of time that is equal to or less
555	555	11 than the number of months for which the payments are delayed or
556	556	12 suspended.
557	557	13 (b) If payments on loans or advances from the common school fund
558	558	14 are suspended under section 6.8 of this chapter, the distressed unit
559	559	15 appeal board shall require that the school corporation:
560	560	16 (1) establish a school improvement fund; and
561	561	17 (2) transfer to the school improvement fund an amount equal to
562	562	18 the payments that are delayed or suspended for calendar year
563	563	19 2020.
564	564	20 (c) A school improvement fund established under subsection (b)(1)
565	565	21 may be used only for the following purposes:
566	566	22 (1) Repair, renovation, or other improvements to school buildings
567	567	23 and property being used for education purposes as of July 1, 2020.
568	568	24 (2) Demolition of school buildings or other structures on school
569	569	25 property in existence as of July 1, 2020.
570	570	26 (d) All expenditures from a school improvement fund established
571	571	27 under subsection (b)(1) must be approved by the distressed unit appeal
572	572	28 board.
573	573	29 (e) A school corporation may, on an annual basis, levy a tax in the
574	574	30 debt service fund equal to the amount that would have been deducted
575	575	31 from the distribution of state tuition support for the payment of loans
576	576	32 made under section 6.8 of this chapter during calendar year 2020 if the
577	577	33 loans had not been suspended. The amount received from a tax under
578	578	34 this subsection must be transferred from the debt service fund to the
579	579	35 education fund.
580	580	36 (f) With the approval of the distressed unit appeal board, a school
581	581	37 corporation may spend other funds of the school corporation for the
582	582	38 purposes described in subsection (c) and reimburse the expenditures
583	583	39 from a school improvement fund established under subsection (b)(1).
584	584	40 (g) This section expires January 1, 2025.
585	585	41 SECTION 6. IC 20-23-8-5, AS AMENDED BY P.L.233-2015,
586	586	42 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
587	587	2023 IN 436—LS 7466/DI 110 14
588	588	1 UPON PASSAGE]: Sec. 5. As used in this chapter, "school
589	589	2 corporation" means a local public school corporation established under
590	590	3 the laws of Indiana. The term does not include a school corporation
591	591	4 covered by IC 20-23-12 (before its expiration), IC 20-23-12.1,
592	592	5 IC 20-23-17, or IC 20-23-17.2.
593	593	6 SECTION 7. IC 20-23-12-12 IS ADDED TO THE INDIANA
594	594	7 CODE AS A NEW SECTION TO READ AS FOLLOWS
595	595	8 [EFFECTIVE UPON PASSAGE]: Sec. 12. This chapter expires
596	596	9 November 8, 2023.
597	597	10 SECTION 8. IC 20-23-12.1 IS ADDED TO THE INDIANA CODE
598	598	11 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
599	599	12 UPON PASSAGE]:
600	600	13 Chapter 12.1. Election of Governing Body Members of Gary
601	601	14 Community School Corporation
602	602	15 Sec. 1. IC 20-23-8 does not apply to:
603	603	16 (1) a school corporation; or
604	604	17 (2) the governing body of a school corporation;
605	605	18 covered by this chapter.
606	606	19 Sec. 2. As used in this chapter, "school corporation" means the
607	607	20 Gary Community School Corporation.
608	608	21 Sec. 3. (a) The governing body of the school corporation consists
609	609	22 of seven (7) members elected as follows:
610	610	23 (1) On a nonpartisan basis.
611	611	24 (2) In a general election in the county.
612	612	25 (b) Six (6) of the members shall be elected from the school
613	613	26 districts drawn under section 4 of this chapter. Each member:
614	614	27 (1) is elected from the school district in which the member
615	615	28 resides; and
616	616	29 (2) upon election and in conducting the business of the
617	617	30 governing body, represents the interests of the entire school
618	618	31 corporation.
619	619	32 (c) One (1) of the members elected:
620	620	33 (1) is the at-large member of the governing body;
621	621	34 (2) may reside in any of the districts drawn under section 4 of
622	622	35 this chapter; and
623	623	36 (3) upon election and in conducting the business of the
624	624	37 governing body, represents the interests of the entire school
625	625	38 corporation.
626	626	39 Sec. 4. The districts are drawn on the same lines as the common
627	627	40 council districts referred to in IC 36-4-6-3.
628	628	41 Sec. 5. (a) The six (6) members who are elected for a position on
629	629	42 the governing body described under section 3(b) of this chapter are
630	630	2023 IN 436—LS 7466/DI 110 15
631	631	1 determined as follows:
632	632	2 (1) Each prospective candidate must file a nomination petition
633	633	3 with the board of elections and registration not earlier than
634	634	4 one hundred four (104) days and not later than noon
635	635	5 seventy-four (74) days before the election at which the
636	636	6 members are to be elected that includes the following
637	637	7 information:
638	638	8 (A) The name of the prospective candidate.
639	639	9 (B) The district in which the prospective candidate resides.
640	640	10 (C) The signatures of at least one hundred (100) registered
641	641	11 voters residing in the school corporation.
642	642	12 (D) The fact that the prospective candidate is running for
643	643	13 a district position.
644	644	14 (E) A certification that the prospective candidate meets the
645	645	15 qualifications for candidacy imposed by this chapter.
646	646	16 (2) Only eligible voters residing in the district may vote for a
647	647	17 candidate.
648	648	18 (3) The candidate within each district who receives the
649	649	19 greatest number of votes in the district is elected.
650	650	20 (b) The at-large member elected under section 3(c) of this
651	651	21 chapter is determined as follows:
652	652	22 (1) Each prospective candidate must file a nomination petition
653	653	23 with the clerk of the circuit court at least seventy-four (74)
654	654	24 days before the election at which the at-large member is to be
655	655	25 elected. The petition must include the following information:
656	656	26 (A) The name of the prospective candidate.
657	657	27 (B) The signatures of at least one hundred (100) registered
658	658	28 voters residing within the school corporation.
659	659	29 (C) The fact that the prospective candidate is running for
660	660	30 the at-large position on the governing body.
661	661	31 (D) A certification that the prospective candidate meets the
662	662	32 qualifications for candidacy imposed by this chapter.
663	663	33 (2) Only eligible voters residing in the school corporation may
664	664	34 vote for a candidate.
665	665	35 (3) The candidate who:
666	666	36 (A) runs for the at-large position on the governing body;
667	667	37 and
668	668	38 (B) receives the greatest number of votes in the school
669	669	39 corporation;
670	670	40 is elected to the at-large position.
671	671	41 Sec. 6. (a) A candidate who runs for a position on the governing
672	672	42 body described under section 3(b) of this chapter must reside in the
673	673	2023 IN 436—LS 7466/DI 110 16
674	674	1 school corporation district for which the candidate filed.
675	675	2 (b) A candidate who runs for the at-large position on the
676	676	3 governing body described in section 3(c) of this chapter must reside
677	677	4 in the school corporation.
678	678	5 Sec. 7. The state board, with assistance from the county election
679	679	6 board, shall establish:
680	680	7 (1) balloting procedures under IC 3 for the election; and
681	681	8 (2) all other procedures required to implement this chapter.
682	682	9 Sec. 8. (a) The term of each person elected to serve on the
683	683	10 governing body is four (4) years.
684	684	11 (b) The term of each person elected to serve on the governing
685	685	12 body begins on the date that the person takes the oath required by
686	686	13 Article 15, Section 4 of the Constitution of the State of Indiana. An
687	687	14 elected member of the governing body shall take the oath described
688	688	15 in this subsection not later than November 14 of the year that the
689	689	16 member is elected.
690	690	17 Sec. 9. (a) A vacancy on the governing body is created when:
691	691	18 (1) a member:
692	692	19 (A) dies;
693	693	20 (B) resigns from the governing body;
694	694	21 (C) ceases to be a resident of the school corporation;
695	695	22 (D) fails to attend, except for reason of chronic illness, six
696	696	23 (6) regularly scheduled meetings of the board in any twelve
697	697	24 (12) month period; or
698	698	25 (E) ceases to be a resident of the school district in which
699	699	26 the member was elected; or
700	700	27 (2) a vacancy is created under any other law.
701	701	28 (b) The governing body shall temporarily fill a vacancy on the
702	702	29 governing body as soon as practicable after the vacancy occurs. A
703	703	30 member appointed to a vacancy under this subsection serves for
704	704	31 the remainder of the unexpired term.
705	705	32 Sec. 10. Before August 1 of each year, the school corporation
706	706	33 shall file with the secretary of education a list of the:
707	707	34 (1) names and addresses of members of the school
708	708	35 corporation's governing body;
709	709	36 (2) names and addresses of the school corporation's officers;
710	710	37 and
711	711	38 (3) expiration dates of the terms of the school corporation's
712	712	39 members and officers.
713	713	40 The school corporation shall file any change in the list not later
714	714	41 than thirty (30) days after the change occurs.
715	715	42 Sec. 11. (a) Notwithstanding section 3(a) of this chapter, the
716	716	2023 IN 436—LS 7466/DI 110 17
717	717	1 members of the governing body shall be elected at the municipal
718	718	2 general election held on November 7, 2023, and take office upon
719	719	3 taking the oath required by Article 15, Section 4 of the Constitution
720	720	4 of the State of Indiana. An elected member of the governing body
721	721	5 shall take the oath described in this subsection not later than
722	722	6 November 14 , 2023.
723	723	7 (b) The initial terms of the members of the governing body of
724	724	8 the school corporation elected under this section begin on the date
725	725	9 that the person takes the oath required by Article 15, Section 4 of
726	726	10 the Constitution of the State of Indiana.
727	727	11 (c) Notwithstanding section 8 of this chapter, the initial terms of
728	728	12 each member of the governing body elected under this section are
729	729	13 as follows:
730	730	14 (1) The four (4) members elected in an election under
731	731	15 subsection (a) who received the highest number of votes shall
732	732	16 serve an initial term of three (3) years.
733	733	17 (2) The three (3) members elected in an election under
734	734	18 subsection (a) who received the fewest number of votes shall
735	735	19 serve an initial term of one (1) year.
736	736	20 (d) Any member of the governing body elected after the initial
737	737	21 terms under subsection (c) shall serve a four (4) year term.
738	738	22 (e) Not later than February 1, 2024, the governing body of the
739	739	23 school corporation shall select an individual as superintendent of
740	740	24 the school corporation.
741	741	25 (f) On July 1, 2024, the governing body elected in accordance
742	742	26 with this chapter assumes all powers, rights, duties, and obligations
743	743	27 of the school corporation as set forth in IC 20-23-4-26.
744	744	28 (g) The governing body of the school corporation may, before
745	745	29 June 30, 2024, engage a third party certified public accountant to
746	746	30 conduct an independent audit of the school corporation's finances.
747	747	31 (h) This section expires January 1, 2028.
748	748	32 Sec. 12. (a) The general assembly finds that the provisions of
749	749	33 this section:
750	750	34 (1) are necessary to address the unique issues faced by the
751	751	35 Gary Community School Corporation; and
752	752	36 (2) are not precedent for and may not be appropriate for
753	753	37 addressing issues faced by other school corporations.
754	754	38 (b) Before the governing body of the school corporation sells
755	755	39 real property, a building, or another structure owned by the school
756	756	40 corporation, the governing body shall do the following:
757	757	41 (1) Provide written notice to the mayor of the city of Gary at
758	758	42 least thirty (30) days before selling the real property, building,
759	759	2023 IN 436—LS 7466/DI 110 18
760	760	1 or other structure.
761	761	2 (2) Hold at least one (1) public hearing within the geographic
762	762	3 boundaries of the school corporation to hear public testimony
763	763	4 on the proposed sale.
764	764	5 (3) Provide public notice of the hearing under subdivision (2)
765	765	6 as required under IC 5-14-1.5-5.
766	766	7 SECTION 9. IC 20-29-2-6, AS AMENDED BY P.L.272-2019,
767	767	8 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
768	768	9 UPON PASSAGE]: Sec. 6. "Deficit financing" for a budget year:
769	769	10 (1) means, except as provided in subdivision (2), actual
770	770	11 expenditures exceeding the employer's current year actual
771	771	12 education fund revenue and, for a school employer for which the
772	772	13 voters have passed an operating referendum tax levy under
773	773	14 IC 20-46-1 or a school safety referendum tax levy under
774	774	15 IC 20-46-9, the amount of revenue certified by the department of
775	775	16 local government finance; or
776	776	17 (2) means, in the case of any distressed school corporation, the
777	777	18 Gary Community School Corporation until June 30, 2024, or the
778	778	19 Muncie Community school corporation, or any other distressed
779	779	20 school corporation, actual expenditures plus additional payments
780	780	21 against any outstanding debt obligations exceeding the employer's
781	781	22 current year actual education fund revenue, and, for a school
782	782	23 employer for which the voters have passed an operating
783	783	24 referendum tax levy under IC 20-46-1 or a school safety
784	784	25 referendum tax levy under IC 20-46-9, the amount of revenue
785	785	26 certified by the department of local government finance.
786	786	27 Except as provided in IC 20-29-6-3(c), revenue does not include money
787	787	28 estimated to be or actually transferred from the school corporation's
788	788	29 operations fund to its education fund.
789	789	30 SECTION 10. [EFFECTIVE UPON PASSAGE] (a) As used in this
790	790	31 SECTION, "advisory board" refers to the Gary public schools
791	791	32 advisory board created under IC 20-23-12-3.
792	792	33 (b) The terms of the members of the advisory board expire
793	793	34 November 8, 2023.
794	794	35 (c) The term of the member appointed to the fiscal management
795	795	36 board under IC 6-1.1-20.3-6.8(g), as amended by this act, expires
796	796	37 November 8, 2023.
797	797	38 (d) This SECTION expires July 1, 2024.
798	798	39 SECTION 11. [EFFECTIVE UPON PASSAGE] (a) As used in this
799	799	40 SECTION, "common school fund" refers to the common school
800	800	41 fund in the custody of the treasurer of state.
801	801	42 (b) There is transferred to the common school fund from the
802	802	2023 IN 436—LS 7466/DI 110 19
803	803	1 state general fund not later than July 1, 2023, an amount sufficient
804	804	2 to pay off all debts from advances or loans that were made to the
805	805	3 Gary Community School Corporation from the common school
806	806	4 fund. On the date of the transfer, the loan is considered paid.
807	807	5 (c) Any repayment agreements entered into regarding any
808	808	6 advances or loans from the common school fund to the Gary
809	809	7 Community School Corporation for the advances or loans
810	810	8 described in subsection (b) are fulfilled on the date the advances or
811	811	9 loans are paid off under subsection (b).
812	812	10 (d) This SECTION expires July 1, 2024.
813	813	11 SECTION 12. An emergency is declared for this act.
814	814	2023 IN 436—LS 7466/DI 110