Introduced Version
SENATE BILL No. 436
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-6-2-1.5; IC 5-9-4; IC 6-1.1-20.3; IC 20-23;
IC 20-29-2-6.
Synopsis: Gary Community School Corporation. Terminates the Gary
Community School Corporation's (school corporation) status as a
distressed political subdivision on June 30, 2024. Provides that the
members of the governing body of the school corporation shall be
elected at the municipal general election held on November 7, 2023,
and take office upon taking the oath required by the Constitution of the
State of Indiana not later than November 14, 2023. Requires the
governing body to select a superintendent not later than February 1,
2024. Requires the emergency manager and chief financial officer to
consistently inform the superintendent of the school corporation
regarding the day to day operations of the school corporation. Requires
the emergency manager to provide monthly financial and academic
reports to the governing body. Provides that the current emergency
manager's appointment terminates on June 30, 2024. Provides that the
elected governing body assumes all powers, rights, duties, and
obligations of the school corporation on July 1, 2024. Provides that,
before the governing body sells real property, a building, or another
structure owned by the school corporation, the governing body shall:
(1) provide written notice to the mayor of the city of Gary at least 30
days before selling the real property, building, or other structure; and
(2) provide public notice and hold at least one public hearing within the
geographic boundaries of the school corporation to hear public
testimony on the proposed sale. Transfers, not later than July 1, 2023,
to the common school fund from the state general fund an amount
sufficient to pay off all debts from advances and loans that were made
to the school corporation from the common school fund. Removes or
repeals provisions regarding the establishment and use of a school
improvement fund.
Effective: Upon passage; July 1, 2023.
Melton
January 19, 2023, read first time and referred to Committee on Appropriations.
2023 IN 436—LS 7466/DI 110 Introduced
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2022 Regular Session of the General Assembly.
SENATE BILL No. 436
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-6-2-1.5, AS AMENDED BY P.L.163-2020,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 1.5. (a) Whenever any state governmental
4 official or employee, whether elected or appointed, is made a party to
5 a suit, and the attorney general determines that said suit has arisen out
6 of an act which such official or employee in good faith believed to be
7 within the scope of the official's or employee's duties as prescribed by
8 statute or duly adopted regulation, the attorney general shall defend
9 such person throughout such action.
10 (b) Whenever a teacher (as defined in IC 20-18-2-22) is made a
11 party to a civil suit, and the attorney general determines that the suit
12 has arisen out of an act that the teacher in good faith believed was
13 within the scope of the teacher's duties in enforcing discipline policies
14 developed under IC 20-33-8-12, the attorney general shall defend the
15 teacher throughout the action.
16 (c) Not later than July 30 of each year, the attorney general, in
17 consultation with the Indiana education employment relations board
2023 IN 436—LS 7466/DI 110 2
1 established in IC 20-29-3-1, shall draft and disseminate a letter by first
2 class mail to the residence of teachers providing a summary of the
3 teacher's rights and protections under state and federal law, including
4 a teacher's rights and protections relating to the teacher's performance
5 evaluation under IC 20-28-11.5.
6 (d) The department of education, in consultation with the Indiana
7 education employment relations board, shall develop a method to
8 provide the attorney general with the names and addresses of active
9 teachers in Indiana in order for the attorney general to disseminate the
10 letter described in subsection (c). Names and addresses collected and
11 provided to the attorney general under this subsection are confidential
12 and excepted from public disclosure as provided in IC 5-14-3-4.
13 (e) Whenever a school corporation (as defined in IC 20-26-2-4) is
14 made a party to a civil suit and the attorney general determines that the
15 suit has arisen out of an act authorized under IC 20-30-5-0.5 or
16 IC 20-30-5-4.5, the attorney general shall defend the school corporation
17 throughout the action.
18 (f) Whenever a member of the fiscal management board appointed
19 under IC 6-1.1-20.3-6.8 is made a party to a civil suit and the attorney
20 general determines that the suit has arisen out of an act by the fiscal
21 management board member that is authorized or required under
22 IC 6-1.1-20.3 or any other law, the attorney general shall defend the
23 fiscal management board member throughout the action. This
24 subsection expires November 8, 2023.
25 (g) As used in this subsection, "bridge authority" refers to the New
26 Harmony and Wabash River bridge authority established by
27 IC 8-16-15.5-2. Whenever:
28 (1) the bridge authority;
29 (2) a member of the bridge authority;
30 (3) an officer of the bridge authority; or
31 (4) an employee of the bridge authority;
32 is made a party to a civil suit and the attorney general determines that
33 the suit has arisen out of an act or omission of any person described in
34 subdivision (1), (2), (3), or (4), that is authorized or required under
35 IC 8-16-15.5 or any other law, the attorney general shall defend that
36 person throughout the action.
37 (h) A determination by the attorney general under subsection (a),
38 (b), (e), (f), or (g) shall not be admitted as evidence in the trial of any
39 such civil action for damages.
40 (i) Nothing in this chapter shall be construed to deprive any such
41 person of the person's right to select counsel of the person's own choice
42 at the person's own expense.
2023 IN 436—LS 7466/DI 110 3
1 SECTION 2. IC 5-9-4-7, AS AMENDED BY P.L.2-2014,
2 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 7. (a) Except as provided in subsection (b) or
4 (c), an officeholder who elects to take the leave of absence described
5 in section 6 of this chapter shall give written notice that the
6 officeholder is taking a leave of absence for military service to the
7 person or entity designated in IC 5-8-3.5-1 to receive a resignation for
8 the office the officeholder holds.
9 (b) An officeholder who is:
10 (1) a justice of the supreme court, a judge of the court of appeals,
11 or a judge of the tax court; or
12 (2) a judge of a circuit, city, probate, or superior court;
13 shall give the written notice required by subsection (a) to the clerk of
14 the supreme court.
15 (c) An officeholder who holds a school board office shall give the
16 written notice required by subsection (a) to the person or entity
17 designated in IC 20-25-3, IC 20-25-4, IC 20-25-5, IC 20-23-12 (before
18 its expiration), IC 20-23-12.1, IC 20-23-14, IC 20-23-15, IC 20-23-4,
19 or IC 20-26 to receive a resignation for the office the officeholder
20 holds.
21 (d) The written notice required by subsection (a) must state that the
22 officeholder is taking a leave of absence because the officeholder:
23 (1) has been called for active duty in:
24 (A) the armed forces of the United States; or
25 (B) the national guard; and
26 (2) will be temporarily unable to perform the duties of the
27 officeholder's office.
28 SECTION 3. IC 5-9-4-8, AS AMENDED BY P.L.74-2017,
29 SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 UPON PASSAGE]: Sec. 8. (a) Except as provided in subsection (b)
31 and IC 36-5-6-9, during the officeholder's leave of absence, the
32 officeholder's office must be filled by a temporary appointment made
33 under:
34 (1) IC 3-13-4;
35 (2) IC 3-13-5;
36 (3) IC 3-13-6;
37 (4) IC 3-13-7;
38 (5) IC 3-13-8;
39 (6) IC 3-13-9;
40 (7) IC 3-13-10;
41 (8) IC 3-13-11;
42 (9) IC 20-23-4;
2023 IN 436—LS 7466/DI 110 4
1 (10) IC 20-26;
2 (11) IC 20-23-12 (before its expiration);
3 (12) IC 20-23-12.1;
4 (12) (13) IC 20-23-14;
5 (13) (14) IC 20-23-15;
6 (14) (15) IC 20-23-17;
7 (15) (16) IC 20-23-17.2;
8 (16) (17) IC 20-25-3;
9 (17) (18) IC 20-25-4; or
10 (18) (19) IC 20-25-5;
11 in the same manner as a vacancy created by a resignation is filled. A
12 temporary appointment may be made in accordance with the applicable
13 statute after the written notice required under section 7 of this chapter
14 has been filed.
15 (b) For an officeholder who:
16 (1) is:
17 (A) a justice of the supreme court, a judge of the court of
18 appeals, or a judge of the tax court; or
19 (B) a judge of a circuit, city, probate, or superior court; and
20 (2) is taking a leave of absence under this chapter;
21 the supreme court shall appoint a judge pro tempore to fill the
22 officeholder's office in accordance with the court's rules and
23 procedures.
24 (c) The person selected or appointed under subsection (a) or (b)
25 serves until the earlier of:
26 (1) the date the officeholder's leave of absence ends as provided
27 in section 10 of this chapter; or
28 (2) the officeholder's term of office expires.
29 (d) The person selected or appointed to an office under subsection
30 (a) or (b):
31 (1) assumes all the rights and duties of; and
32 (2) is entitled to the compensation established for;
33 the office for the period of the temporary appointment.
34 SECTION 4. IC 6-1.1-20.3-6.8, AS AMENDED BY P.L.43-2021,
35 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 UPON PASSAGE]: Sec. 6.8. (a) This section applies only to the Gary
37 Community School Corporation.
38 (b) The general assembly finds that the provisions of this section:
39 (1) are necessary to address the unique issues faced by the Gary
40 Community School Corporation; and
41 (2) are not precedent for and may not be appropriate for
42 addressing issues faced by other school corporations.
2023 IN 436—LS 7466/DI 110 5
1 (c) As used in this section, the following definitions apply:
2 (1) "Chief academic officer" means the chief academic officer
3 appointed under subsection (j). (k).
4 (2) "Chief financial officer" means the chief financial officer
5 appointed under subsection (i).
6 (3) "School corporation" refers to the Gary Community School
7 Corporation.
8 (d) The Gary Community School Corporation is designated as a
9 distressed political subdivision for purposes of this chapter until the
10 school corporation's designation as a distressed political subdivision is
11 terminated as provided in section 13(b) of this chapter. on June 30,
12 2024. This designation as a distressed political subdivision is effective
13 regardless of whether the school corporation has submitted a petition
14 requesting to be designated as a distressed political subdivision. Until
15 the school corporation's designation as a distressed political
16 subdivision is terminated as provided in section 13(b) of this chapter,
17 The Gary Community School Corporation advisory board (before its
18 expiration) may not hold a public meeting more often than once every
19 three (3) months. This limit on the number of meetings of the advisory
20 board does not apply to the emergency manager. The emergency
21 manager shall hold a monthly forum to provide an update on the Gary
22 Community School Corporation within the school district that is open
23 to the general public. During the period that the Gary Community
24 School Corporation is designated as a distressed political subdivision,
25 Until November 8, 2023, the advisory board may vote to:
26 (1) fill vacancies;
27 (2) select officers; or
28 (3) make appointments;
29 of the advisory board, and to present awards, recognition, and
30 certificates to employees or supporters of the school corporation.
31 (e) Until the school corporation's designation as a distressed
32 political subdivision is terminated as provided in section 13(b) of this
33 chapter, June 30, 2024, the following apply to the emergency manager
34 appointed under section 7.5 of this chapter for the school corporation:
35 (1) The emergency manager has the powers and duties specified
36 in this chapter.
37 (2) The emergency manager shall consider recommendations
38 from the fiscal management board (before its expiration) and the
39 advisory board (before its expiration), but the emergency
40 manager has full responsibility and authority related to financial
41 and academic matters of the school corporation. and the
42 emergency manager may act, as specified in this chapter, on these
2023 IN 436—LS 7466/DI 110 6
1 financial and academic matters without the approval of the fiscal
2 management board or the advisory board.
3 (3) Notwithstanding section 7.5(d) of this chapter, the distressed
4 unit appeal board shall:
5 (A) determine the compensation of the emergency manager,
6 chief financial officer, and chief academic officer; and
7 (B) subject to subsections (i) and (j), (k), pay the emergency
8 manager's, chief financial officer's, and chief academic
9 officer's compensation and reimburse the emergency manager,
10 chief financial officer, and chief academic officer for actual
11 and necessary expenses from funds appropriated to the
12 distressed unit appeal board.
13 (4) Before appointing the emergency manager, the distressed unit
14 appeal board shall interview at least one (1) resident of the city of
15 Gary as a candidate for the position. If the distressed unit appeal
16 board is not able to interview a resident of the city of Gary as a
17 candidate for the position, the distressed unit appeal board shall
18 interview at least one (1) individual who is a resident of Lake
19 County or northwest Indiana as a candidate for the position.
20 (5) The emergency manager shall do the following:
21 (A) After January 31, 2024, consistently inform the
22 superintendent of the school corporation regarding the day
23 to day operations of the school corporation.
24 (B) After November 7, 2023, provide monthly reports to
25 the governing body of the school corporation regarding
26 academic and financial matters of the school corporation.
27 The appointment of the emergency manager for the school corporation
28 is terminated on the date the school corporation's designation as a
29 distressed political subdivision is terminated as provided in section
30 13(b) of this chapter. June 30, 2024. The distressed unit appeal
31 board shall not renew or enter into a new contract under this
32 subsection with an emergency manager.
33 (f) In addition to any other actions that the distressed unit appeal
34 board may take under this chapter concerning a distressed political
35 subdivision, for a distressed school corporation, the distressed unit
36 appeal board may also do any of the following:
37 (1) The distressed unit appeal board may delay or suspend, for a
38 period determined by the board, any payments of principal or
39 interest, or both, that would otherwise be due from the school
40 corporation on loans or advances from the common school fund.
41 (2) The distressed unit appeal board may recommend to the state
42 board of finance that the state board of finance make an interest
2023 IN 436—LS 7466/DI 110 7
1 free loan to the school corporation from the common school fund.
2 The distressed unit appeal board shall determine the payment
3 schedule and the commencement date for the loan. If the
4 distressed unit appeal board makes a recommendation that such
5 a loan be made, the state board of finance may, notwithstanding
6 IC 20-49, make such a loan for a term of not more than ten (10)
7 years.
8 (3) The distressed unit appeal board may establish benchmarks of
9 financial improvement for the school corporation.
10 (4) The distressed unit appeal board may provide a grant or grants
11 to the school corporation from funds appropriated to the
12 distressed unit appeal board, in amounts determined by the
13 distressed unit appeal board, to assist the school corporation in
14 overcoming short term financial problems.
15 (5) The distressed unit appeal board may make a recommendation
16 to the general assembly concerning the possible restructuring of
17 advances made to the school corporation from the common school
18 fund, including forgiveness of principal and interest on those
19 advances.
20 (g) The fiscal management board is established. The fiscal
21 management board consists of the following members:
22 (1) One (1) member appointed by the advisory board.
23 (2) One (1) member appointed by the mayor of the city of Gary.
24 (3) One (1) member, who must have experience working with or
25 for an urban school corporation, appointed by the secretary of
26 education.
27 (4) One (1) member, who must have experience working with or
28 for an urban school corporation, appointed by the state board of
29 education.
30 This subsection expires November 8, 2023.
31 (h) The following apply to the fiscal management board and to the
32 members of the fiscal management board:
33 (1) The term of office of a member of the fiscal management
34 board is four (4) years, beginning on the date of appointment. A
35 member of the fiscal management board may be reappointed to
36 the fiscal management board. A member of the fiscal
37 management board may be removed for cause by the appointing
38 authority.
39 (2) A member of the fiscal management board must have the
40 following:
41 (A) At least three (3) years experience in financial
42 management.
2023 IN 436—LS 7466/DI 110 8
1 (B) A meaningful background and work experience in finance
2 and business.
3 (C) An understanding of government contracts.
4 (D) Knowledge and experience in organizational effectiveness,
5 operations management, and implementing best practices.
6 (E) Experience in budget development and oversight.
7 (F) A demonstrated commitment to high professional and
8 ethical standards and a diverse workplace.
9 (G) An understanding of tax and other compliance
10 implications.
11 (3) A member of the advisory board may not serve as a member
12 of the fiscal management board.
13 (4) The fiscal management board:
14 (A) shall make recommendations to the emergency manager;
15 and
16 (B) shall advise the emergency manager as requested by the
17 emergency manager.
18 (5) The members of the fiscal management board are not entitled
19 to any compensation for their service on the fiscal management
20 board.
21 (6) The fiscal management board is abolished, and the terms of
22 the members of the fiscal management board are terminated, on
23 the date the school corporation's designation as a distressed
24 political subdivision is terminated as provided in section 13(b) of
25 this chapter. this section.
26 (7) Under the supervision of the emergency manager, the fiscal
27 management board shall serve as a liaison to and shall work
28 jointly with the distressed unit appeal board, the mayor of the city
29 of Gary, and the department of education to develop a transition
30 plan to address issues or questions related to:
31 (A) the designation of the school corporation as a distressed
32 political subdivision and the transfer of powers and duties to
33 the emergency manager under this chapter; and
34 (B) the potential impact of the transition on the community
35 and the school corporation.
36 (8) Under the supervision of the emergency manager, the fiscal
37 management board shall work jointly with the distressed unit
38 appeal board, the mayor of the city of Gary, and the department
39 of education to provide information on a regular basis to parents,
40 students, employees of the school corporation, and the public on
41 the status of the transition.
42 This subsection expires November 8, 2023.
2023 IN 436—LS 7466/DI 110 9
1 (i) The emergency manager shall employ a chief financial officer for
2 the school corporation. The chief financial officer is an employee of the
3 school corporation. The chief financial officer shall report to the
4 emergency manager and shall assist the emergency manager appointed
5 for the school corporation and the fiscal management board in carrying
6 out the day to day financial operations of the school corporation. Before
7 July 1, 2019, the compensation of the chief financial officer shall be
8 determined by the distressed unit appeal board. Before July 1, 2019, the
9 compensation of the chief financial officer shall be paid from the funds
10 appropriated to the distressed unit appeal board. After June 30, 2019,
11 the compensation of the chief financial officer shall be determined by
12 and paid by the school corporation. The chief financial officer:
13 (1) must possess, through both education and experience, an
14 understanding of finance and financial management; and
15 (2) must possess any other experience and must meet any other
16 requirements as required by the distressed unit appeal board to
17 ensure that the chief financial officer is qualified to carry out the
18 financial restructuring of the school corporation.
19 Before employing a chief financial officer under this subsection, the
20 emergency manager shall interview at least one (1) resident of the city
21 of Gary as a candidate for the position. If the emergency manager is not
22 able to interview a resident of the city of Gary as a candidate for the
23 position, the emergency manager shall interview at least one (1)
24 individual who is a resident of Lake County or northwest Indiana as a
25 candidate for the position.
26 (j) After January 31, 2024, the chief financial officer employed
27 under subsection (i) shall consistently inform the superintendent of
28 the school corporation regarding the day to day operations of the
29 school corporation.
30 (j) (k) The emergency manager shall employ a chief academic
31 officer for the school corporation, after consultation with the
32 department of education, who must have experience working with or
33 for an urban school corporation. The chief academic officer is an
34 employee of the school corporation. The chief academic officer shall
35 report to the emergency manager and shall assist the emergency
36 manager appointed for the school corporation and the fiscal
37 management board (before its expiration) in carrying out the
38 academic matters of the school corporation. Before July 1, 2019, the
39 compensation of the chief academic officer shall be determined by the
40 distressed unit appeal board. Before July 1, 2019, the compensation of
41 the chief academic officer shall be paid from the funds appropriated to
42 the distressed unit appeal board. After June 30, 2019, the compensation
2023 IN 436—LS 7466/DI 110 10
1 of the chief academic officer shall be determined by and paid by the
2 school corporation. The chief academic officer must:
3 (1) hold a valid license to teach in a public school under
4 IC 20-28-5;
5 (2) possess, through both education and experience, an
6 understanding of curriculum and academics; and
7 (3) possess any other experience and meet any other requirements
8 as required by the distressed unit appeal board to ensure that the
9 chief academic officer is qualified to carry out the academic goals
10 of the school corporation.
11 Before employing a chief academic officer under this subsection, the
12 emergency manager shall interview at least one (1) resident of the city
13 of Gary as a candidate for the position. If the emergency manager is not
14 able to interview a resident of the city of Gary as a candidate for the
15 position, the emergency manager shall interview at least one (1)
16 individual who is a resident of Lake County or northwest Indiana as a
17 candidate for the position.
18 (k) (l) The chief financial officer and chief academic officer shall
19 assist the emergency manager in carrying out the emergency manager's
20 duties under this chapter.
21 (l) (m) The annual budget adopted by the emergency manager for
22 the school corporation must dedicate a significant part of the school
23 corporation's budget to eliminating the school corporation's outstanding
24 financial obligations. The emergency manager shall attempt to
25 negotiate with the creditors of the school corporation to establish a plan
26 specifying the schedule for paying each creditor. The emergency
27 manager shall submit the plan to the distressed unit appeal board for
28 approval. The distressed unit appeal board must:
29 (1) review the plan submitted by the emergency manager; and
30 (2) not later than sixty (60) days after the plan is submitted,
31 either:
32 (A) approve the plan as submitted by the emergency manager;
33 or
34 (B) modify the plan as submitted by the emergency manager
35 and then approve the modified plan.
36 (m) (n) The emergency manager shall consider any
37 recommendations from the following:
38 (1) The fiscal management board, the advisory board, and the
39 mayor of the city of Gary in developing the school corporation's
40 annual budget for the 2023-2024 state fiscal year.
41 (2) Beginning with the budget for the 2024-2025 state fiscal
42 year, the governing body of the school corporation, the
2023 IN 436—LS 7466/DI 110 11
1 superintendent of the school corporation, and the mayor of
2 the city of Gary in developing the school corporation's annual
3 budget.
4 The distressed unit appeal board must review and approve the school
5 corporation's annual budget that is proposed by the emergency
6 manager. When the emergency manager submits the school
7 corporation's proposed annual budget to the distressed unit appeal
8 board, the emergency manager shall provide copies of the proposed
9 annual budget to the fiscal management board (before its expiration)
10 and the advisory board (before its expiration).
11 (n) (o) After considering any recommendations from the fiscal
12 management board, the advisory board, and the mayor of the city of
13 Gary, as described in subsection (n), the emergency manager shall do
14 the following:
15 (1) Conduct a financial and compliance audit of the operations of
16 the school corporation.
17 (2) Develop a written financial plan for the school corporation.
18 The object of the plan must be to achieve financial stability for
19 the school corporation, and the plan must include provisions for
20 paying all of the school corporation's outstanding obligations and
21 for paying all future obligations of the school corporation
22 (including any federal, state, or local taxes or assessments) in a
23 timely manner.
24 (o) (p) In addition to the report required by section 8.5(c)(5) of this
25 chapter, the emergency manager, the chief financial officer, and the
26 chief academic officer shall report quarterly to the distressed unit
27 appeal board in a format specified by the distressed unit appeal board.
28 The report must include:
29 (1) information concerning the actions that the school corporation
30 is taking to improve the financial condition of the school
31 corporation; and
32 (2) any other information required by the distressed unit appeal
33 board.
34 The emergency manager shall report more frequently than quarterly if
35 requested by the distressed unit appeal board.
36 (q) The emergency manager shall provide copies of the report to the
37 following:
38 (1) Before November 7, 2023, the fiscal management board, the
39 advisory board, and the mayor of the city of Gary.
40 (2) After November 7, 2023, the governing body of the school
41 corporation, the superintendent of the school corporation
42 after the superintendent is selected, and the mayor of the city
2023 IN 436—LS 7466/DI 110 12
1 of Gary.
2 The emergency manager shall present each report at a public meeting.
3 of the fiscal management board.
4 (p) (r) The school corporation shall do the following:
5 (1) Publish a copy of each report under subsection (o) (p) on the
6 school corporation's Internet web site, website, along with a link
7 to the main page of the Indiana transparency Internet web site
8 website established under IC 5-14-3.7 to provide access to
9 financial data for local schools.
10 (2) Make copies of each report available free of charge to the
11 public upon request.
12 (3) Provide copies of each report to the mayor of the city of Gary.
13 The mayor shall make copies of the reports available free of
14 charge to the public upon request.
15 (q) (s) The chief academic officer shall develop an education plan
16 to provide academic services to students in the school corporation and
17 to achieve academic progress. The education plan must include at least
18 the following components:
19 (1) An academic program designed to meet Indiana's academic
20 standards and to assist students in meeting those academic
21 standards.
22 (2) A plan to improve the academic performance of all students,
23 including improvement in the performance of students on
24 standardized tests.
25 (3) A plan to engage parents in school performance and school
26 activities, including regular meetings at each school involving
27 administrators, teachers, parents, and interested members of the
28 community.
29 (4) A plan to implement performance standards that will attract
30 students and families to the school corporation.
31 (5) A plan specifying how the school corporation will work
32 directly with the city of Gary:
33 (A) to make the schools a successful component of life within
34 the city; and
35 (B) to develop a sense of pride and progress in the operations
36 and accomplishments of the school corporation.
37 Until November 8, 2023, the chief financial officer and the chief
38 academic officer shall submit a report to the advisory board each
39 quarter. The chief financial officer and chief academic officer shall
40 meet at least quarterly with the executive committee of the bargaining
41 unit to inform the executive committee of the academic progress of the
42 school corporation.
2023 IN 436—LS 7466/DI 110 13
1 (t) This section expires July 1, 2024.
2 SECTION 5. IC 6-1.1-20.3-17 IS REPEALED [EFFECTIVE JULY
3 1, 2023]. Sec. 17. (a) If the distressed unit appeal board delays or
4 suspends, for a period determined by the board, any payments on loans
5 or advances from the common school fund under section 6.8 of this
6 chapter, the distressed unit appeal board may recommend to the state
7 board of finance that the term of the loans or advances be extended. If
8 the distressed unit appeal board makes a recommendation to extend the
9 term of the loan or advances, the state board of finance may extend the
10 term of the loans or advances for a period of time that is equal to or less
11 than the number of months for which the payments are delayed or
12 suspended.
13 (b) If payments on loans or advances from the common school fund
14 are suspended under section 6.8 of this chapter, the distressed unit
15 appeal board shall require that the school corporation:
16 (1) establish a school improvement fund; and
17 (2) transfer to the school improvement fund an amount equal to
18 the payments that are delayed or suspended for calendar year
19 2020.
20 (c) A school improvement fund established under subsection (b)(1)
21 may be used only for the following purposes:
22 (1) Repair, renovation, or other improvements to school buildings
23 and property being used for education purposes as of July 1, 2020.
24 (2) Demolition of school buildings or other structures on school
25 property in existence as of July 1, 2020.
26 (d) All expenditures from a school improvement fund established
27 under subsection (b)(1) must be approved by the distressed unit appeal
28 board.
29 (e) A school corporation may, on an annual basis, levy a tax in the
30 debt service fund equal to the amount that would have been deducted
31 from the distribution of state tuition support for the payment of loans
32 made under section 6.8 of this chapter during calendar year 2020 if the
33 loans had not been suspended. The amount received from a tax under
34 this subsection must be transferred from the debt service fund to the
35 education fund.
36 (f) With the approval of the distressed unit appeal board, a school
37 corporation may spend other funds of the school corporation for the
38 purposes described in subsection (c) and reimburse the expenditures
39 from a school improvement fund established under subsection (b)(1).
40 (g) This section expires January 1, 2025.
41 SECTION 6. IC 20-23-8-5, AS AMENDED BY P.L.233-2015,
42 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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1 UPON PASSAGE]: Sec. 5. As used in this chapter, "school
2 corporation" means a local public school corporation established under
3 the laws of Indiana. The term does not include a school corporation
4 covered by IC 20-23-12 (before its expiration), IC 20-23-12.1,
5 IC 20-23-17, or IC 20-23-17.2.
6 SECTION 7. IC 20-23-12-12 IS ADDED TO THE INDIANA
7 CODE AS A NEW SECTION TO READ AS FOLLOWS
8 [EFFECTIVE UPON PASSAGE]: Sec. 12. This chapter expires
9 November 8, 2023.
10 SECTION 8. IC 20-23-12.1 IS ADDED TO THE INDIANA CODE
11 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
12 UPON PASSAGE]:
13 Chapter 12.1. Election of Governing Body Members of Gary
14 Community School Corporation
15 Sec. 1. IC 20-23-8 does not apply to:
16 (1) a school corporation; or
17 (2) the governing body of a school corporation;
18 covered by this chapter.
19 Sec. 2. As used in this chapter, "school corporation" means the
20 Gary Community School Corporation.
21 Sec. 3. (a) The governing body of the school corporation consists
22 of seven (7) members elected as follows:
23 (1) On a nonpartisan basis.
24 (2) In a general election in the county.
25 (b) Six (6) of the members shall be elected from the school
26 districts drawn under section 4 of this chapter. Each member:
27 (1) is elected from the school district in which the member
28 resides; and
29 (2) upon election and in conducting the business of the
30 governing body, represents the interests of the entire school
31 corporation.
32 (c) One (1) of the members elected:
33 (1) is the at-large member of the governing body;
34 (2) may reside in any of the districts drawn under section 4 of
35 this chapter; and
36 (3) upon election and in conducting the business of the
37 governing body, represents the interests of the entire school
38 corporation.
39 Sec. 4. The districts are drawn on the same lines as the common
40 council districts referred to in IC 36-4-6-3.
41 Sec. 5. (a) The six (6) members who are elected for a position on
42 the governing body described under section 3(b) of this chapter are
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1 determined as follows:
2 (1) Each prospective candidate must file a nomination petition
3 with the board of elections and registration not earlier than
4 one hundred four (104) days and not later than noon
5 seventy-four (74) days before the election at which the
6 members are to be elected that includes the following
7 information:
8 (A) The name of the prospective candidate.
9 (B) The district in which the prospective candidate resides.
10 (C) The signatures of at least one hundred (100) registered
11 voters residing in the school corporation.
12 (D) The fact that the prospective candidate is running for
13 a district position.
14 (E) A certification that the prospective candidate meets the
15 qualifications for candidacy imposed by this chapter.
16 (2) Only eligible voters residing in the district may vote for a
17 candidate.
18 (3) The candidate within each district who receives the
19 greatest number of votes in the district is elected.
20 (b) The at-large member elected under section 3(c) of this
21 chapter is determined as follows:
22 (1) Each prospective candidate must file a nomination petition
23 with the clerk of the circuit court at least seventy-four (74)
24 days before the election at which the at-large member is to be
25 elected. The petition must include the following information:
26 (A) The name of the prospective candidate.
27 (B) The signatures of at least one hundred (100) registered
28 voters residing within the school corporation.
29 (C) The fact that the prospective candidate is running for
30 the at-large position on the governing body.
31 (D) A certification that the prospective candidate meets the
32 qualifications for candidacy imposed by this chapter.
33 (2) Only eligible voters residing in the school corporation may
34 vote for a candidate.
35 (3) The candidate who:
36 (A) runs for the at-large position on the governing body;
37 and
38 (B) receives the greatest number of votes in the school
39 corporation;
40 is elected to the at-large position.
41 Sec. 6. (a) A candidate who runs for a position on the governing
42 body described under section 3(b) of this chapter must reside in the
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1 school corporation district for which the candidate filed.
2 (b) A candidate who runs for the at-large position on the
3 governing body described in section 3(c) of this chapter must reside
4 in the school corporation.
5 Sec. 7. The state board, with assistance from the county election
6 board, shall establish:
7 (1) balloting procedures under IC 3 for the election; and
8 (2) all other procedures required to implement this chapter.
9 Sec. 8. (a) The term of each person elected to serve on the
10 governing body is four (4) years.
11 (b) The term of each person elected to serve on the governing
12 body begins on the date that the person takes the oath required by
13 Article 15, Section 4 of the Constitution of the State of Indiana. An
14 elected member of the governing body shall take the oath described
15 in this subsection not later than November 14 of the year that the
16 member is elected.
17 Sec. 9. (a) A vacancy on the governing body is created when:
18 (1) a member:
19 (A) dies;
20 (B) resigns from the governing body;
21 (C) ceases to be a resident of the school corporation;
22 (D) fails to attend, except for reason of chronic illness, six
23 (6) regularly scheduled meetings of the board in any twelve
24 (12) month period; or
25 (E) ceases to be a resident of the school district in which
26 the member was elected; or
27 (2) a vacancy is created under any other law.
28 (b) The governing body shall temporarily fill a vacancy on the
29 governing body as soon as practicable after the vacancy occurs. A
30 member appointed to a vacancy under this subsection serves for
31 the remainder of the unexpired term.
32 Sec. 10. Before August 1 of each year, the school corporation
33 shall file with the secretary of education a list of the:
34 (1) names and addresses of members of the school
35 corporation's governing body;
36 (2) names and addresses of the school corporation's officers;
37 and
38 (3) expiration dates of the terms of the school corporation's
39 members and officers.
40 The school corporation shall file any change in the list not later
41 than thirty (30) days after the change occurs.
42 Sec. 11. (a) Notwithstanding section 3(a) of this chapter, the
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1 members of the governing body shall be elected at the municipal
2 general election held on November 7, 2023, and take office upon
3 taking the oath required by Article 15, Section 4 of the Constitution
4 of the State of Indiana. An elected member of the governing body
5 shall take the oath described in this subsection not later than
6 November 14 , 2023.
7 (b) The initial terms of the members of the governing body of
8 the school corporation elected under this section begin on the date
9 that the person takes the oath required by Article 15, Section 4 of
10 the Constitution of the State of Indiana.
11 (c) Notwithstanding section 8 of this chapter, the initial terms of
12 each member of the governing body elected under this section are
13 as follows:
14 (1) The four (4) members elected in an election under
15 subsection (a) who received the highest number of votes shall
16 serve an initial term of three (3) years.
17 (2) The three (3) members elected in an election under
18 subsection (a) who received the fewest number of votes shall
19 serve an initial term of one (1) year.
20 (d) Any member of the governing body elected after the initial
21 terms under subsection (c) shall serve a four (4) year term.
22 (e) Not later than February 1, 2024, the governing body of the
23 school corporation shall select an individual as superintendent of
24 the school corporation.
25 (f) On July 1, 2024, the governing body elected in accordance
26 with this chapter assumes all powers, rights, duties, and obligations
27 of the school corporation as set forth in IC 20-23-4-26.
28 (g) The governing body of the school corporation may, before
29 June 30, 2024, engage a third party certified public accountant to
30 conduct an independent audit of the school corporation's finances.
31 (h) This section expires January 1, 2028.
32 Sec. 12. (a) The general assembly finds that the provisions of
33 this section:
34 (1) are necessary to address the unique issues faced by the
35 Gary Community School Corporation; and
36 (2) are not precedent for and may not be appropriate for
37 addressing issues faced by other school corporations.
38 (b) Before the governing body of the school corporation sells
39 real property, a building, or another structure owned by the school
40 corporation, the governing body shall do the following:
41 (1) Provide written notice to the mayor of the city of Gary at
42 least thirty (30) days before selling the real property, building,
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1 or other structure.
2 (2) Hold at least one (1) public hearing within the geographic
3 boundaries of the school corporation to hear public testimony
4 on the proposed sale.
5 (3) Provide public notice of the hearing under subdivision (2)
6 as required under IC 5-14-1.5-5.
7 SECTION 9. IC 20-29-2-6, AS AMENDED BY P.L.272-2019,
8 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 UPON PASSAGE]: Sec. 6. "Deficit financing" for a budget year:
10 (1) means, except as provided in subdivision (2), actual
11 expenditures exceeding the employer's current year actual
12 education fund revenue and, for a school employer for which the
13 voters have passed an operating referendum tax levy under
14 IC 20-46-1 or a school safety referendum tax levy under
15 IC 20-46-9, the amount of revenue certified by the department of
16 local government finance; or
17 (2) means, in the case of any distressed school corporation, the
18 Gary Community School Corporation until June 30, 2024, or the
19 Muncie Community school corporation, or any other distressed
20 school corporation, actual expenditures plus additional payments
21 against any outstanding debt obligations exceeding the employer's
22 current year actual education fund revenue, and, for a school
23 employer for which the voters have passed an operating
24 referendum tax levy under IC 20-46-1 or a school safety
25 referendum tax levy under IC 20-46-9, the amount of revenue
26 certified by the department of local government finance.
27 Except as provided in IC 20-29-6-3(c), revenue does not include money
28 estimated to be or actually transferred from the school corporation's
29 operations fund to its education fund.
30 SECTION 10. [EFFECTIVE UPON PASSAGE] (a) As used in this
31 SECTION, "advisory board" refers to the Gary public schools
32 advisory board created under IC 20-23-12-3.
33 (b) The terms of the members of the advisory board expire
34 November 8, 2023.
35 (c) The term of the member appointed to the fiscal management
36 board under IC 6-1.1-20.3-6.8(g), as amended by this act, expires
37 November 8, 2023.
38 (d) This SECTION expires July 1, 2024.
39 SECTION 11. [EFFECTIVE UPON PASSAGE] (a) As used in this
40 SECTION, "common school fund" refers to the common school
41 fund in the custody of the treasurer of state.
42 (b) There is transferred to the common school fund from the
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1 state general fund not later than July 1, 2023, an amount sufficient
2 to pay off all debts from advances or loans that were made to the
3 Gary Community School Corporation from the common school
4 fund. On the date of the transfer, the loan is considered paid.
5 (c) Any repayment agreements entered into regarding any
6 advances or loans from the common school fund to the Gary
7 Community School Corporation for the advances or loans
8 described in subsection (b) are fulfilled on the date the advances or
9 loans are paid off under subsection (b).
10 (d) This SECTION expires July 1, 2024.
11 SECTION 12. An emergency is declared for this act.
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