Introduced Version
SENATE BILL No. 437
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 12-17.2-7.2; IC 21-12; IC 21-13.
Synopsis: Education funding. Increases the federal poverty level
threshold for the prekindergarten program from 127% of the federal
poverty level for an eligible child, or 185% of the federal poverty level
for a limited eligibility child, to 300% of the federal poverty level
(removes the limited eligibility child category under the
prekindergarten program). Increases the federal poverty level threshold
for the twenty-first century scholars program from 185% of the federal
poverty level to 300% of the federal poverty level. Requires the
commission for higher education to: (1) coordinate with the department
of education to identify each student who qualifies for a twenty-first
century scholarship each year; (2) automatically enroll those students
identified in the scholarship program without application; and (3)
provide written notification of the approval to the student. Removes a
provision that prohibits the commission for higher education from
awarding a next generation Hoosier educators scholarship to more than
200 new applicants each academic year. Appropriates $10,000,000
from the state general fund to the next generation Hoosier educators
scholarship fund each state fiscal year of the state budget biennium for
purposes of the scholarship. Amends certain qualification requirements
and the award amount for the primary care physician loan forgiveness
program, and renames the program the physician loan forgiveness
program. Appropriates $10,000,000 from the state general fund to the
primary care physician loan forgiveness fund each state fiscal year of
the state budget biennium for purposes of the loan forgiveness
program, and renames the fund the physician loan forgiveness fund.
Appropriates $10,000,000 from the state general fund to the medical
residency education fund each state fiscal year of the state budget
biennium for purposes of medical residency education grants.
Effective: July 1, 2023.
Qaddoura
January 19, 2023, read first time and referred to Committee on Education and Career
Development.
2023 IN 437—LS 6305/DI 120 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. 437
A BILL FOR AN ACT to amend the Indiana Code concerning
higher education and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 12-17.2-7.2-1, AS AMENDED BY P.L.268-2019,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 1. As used in this chapter, "eligible child" refers
4 to an individual who:
5 (1) is at least four (4) years of age and less than five (5) years of
6 age on August 1 of the state fiscal year for which a grant is sought
7 under the prekindergarten pilot program;
8 (2) is a resident of Indiana or otherwise has legal settlement in
9 Indiana, as determined under IC 20-26-11;
10 (3) is a member of a household with an annual income that does
11 not exceed one hundred twenty-seven percent (127%) three
12 hundred percent (300%) of the federal poverty level;
13 (4) receives qualified early education services from an eligible
14 provider, as determined by the office;
15 (5) has a parent or guardian who participates in a parental
16 engagement and involvement component provided by the eligible
17 provider;
2023 IN 437—LS 6305/DI 120 2
1 (6) has a parent or guardian who agrees to ensure that the child
2 meets the attendance requirements determined by the office; and
3 (7) meets the requirements under section 7.2(a) and 7.2(c) 7.2(b)
4 of this chapter.
5 SECTION 2. IC 12-17.2-7.2-2, AS AMENDED BY P.L.268-2019,
6 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2023]: Sec. 2. As used in this chapter, "eligible provider"
8 refers to a provider that satisfies the following conditions:
9 (1) The provider is:
10 (A) a:
11 (i) public school, including a charter school;
12 (ii) child care center licensed under IC 12-17.2-4;
13 (iii) child care home licensed under IC 12-17.2-5; or
14 (iv) child care ministry registered under IC 12-17.2-6;
15 that meets the standards of quality recognized by a Level 3 or
16 Level 4 paths to QUALITY program rating;
17 (B) a school that is accredited by the state board of education
18 or a national or regional accreditation agency that is
19 recognized by the state board of education; or
20 (C) a school that is accredited to provide qualified early
21 education services by an accrediting agency approved by the
22 office of the secretary.
23 (2) The provider:
24 (A) provides qualified early education services to eligible and
25 limited eligibility children; and
26 (B) complies with the agreement with the office concerning
27 the delivery of qualified education services and the use of a
28 grant provided under this chapter.
29 SECTION 3. IC 12-17.2-7.2-2.5 IS REPEALED [EFFECTIVE
30 JULY 1, 2023]. Sec. 2.5. As used in this chapter, "limited eligibility
31 child" refers to an individual who:
32 (1) is at least four (4) years of age and less than five (5) years of
33 age on August 1 of the state fiscal year for which a grant is sought
34 under the prekindergarten pilot program;
35 (2) is a resident of Indiana or otherwise has legal settlement in
36 Indiana, as determined under IC 20-26-11;
37 (3) receives qualified early education services from an eligible
38 provider, as determined by the office;
39 (4) has a parent or guardian who agrees to ensure that the child
40 meets the attendance requirements determined by the office;
41 (5) has a parent or guardian who participates in a parental
42 engagement and involvement component provided by the eligible
2023 IN 437—LS 6305/DI 120 3
1 provider;
2 (6) is a member of a household with an annual income that does
3 not exceed one hundred eighty-five percent (185%) of the federal
4 poverty level;
5 (7) meets the requirements of section 7.2(b) and 7.2(c) of this
6 chapter; and
7 (8) is not an eligible child.
8 SECTION 4. IC 12-17.2-7.2-6, AS AMENDED BY P.L.268-2019,
9 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2023]: Sec. 6. As used in this chapter, "qualified early
11 education services" refers to a program of early education services that:
12 (1) is provided by an eligible provider to an eligible or limited
13 eligibility child;
14 (2) includes a parental engagement and involvement component
15 in the delivery of early education services that is based on the
16 requirements and guidelines established by the office;
17 (3) administers the kindergarten readiness assessment adopted by
18 the state board of education;
19 (4) aligns with the early learning development framework for
20 prekindergarten approved by the department of education under
21 IC 20-19-3-16; and
22 (5) meets the design parameters for inclusion in the longitudinal
23 study described in section 12 of this chapter, as determined by the
24 office.
25 SECTION 5. IC 12-17.2-7.2-7, AS AMENDED BY P.L.268-2019,
26 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2023]: Sec. 7. (a) The office may establish a prekindergarten
28 pilot program to provide grants for:
29 (1) qualified early education services in a manner consistent with
30 how funds are distributed under the Child Care and Development
31 Fund (CCDF) grant program; and
32 (2) expansion plans as described in section 7.4(a)(2) of this
33 chapter.
34 (b) The office shall administer the prekindergarten pilot program.
35 The prekindergarten pilot program may include:
36 (1) eligible providers in Indiana; and
37 (2) potential eligible providers or existing eligible providers as
38 described in section 7.4 of this chapter.
39 (c) Before July 1, 2017, the prekindergarten pilot program includes
40 eligible providers in the following pilot counties:
41 (1) Allen.
42 (2) Jackson.
2023 IN 437—LS 6305/DI 120 4
1 (3) Lake.
2 (4) Marion.
3 (5) Vanderburgh.
4 The total number of grants the office awards to eligible children in a
5 county listed in this subsection during a state fiscal year may not be
6 less than the total number of grants the office awarded to eligible
7 children in that county during the immediately preceding state fiscal
8 year unless the office determines that there is an insufficient number of
9 eligible children or eligible providers in the county to justify the total
10 number of grants for that county. Beginning July 1, 2020, the total
11 number of grants during the immediately preceding state fiscal year
12 shall include the number of grants issued under a preschool program
13 established in March 2015 that operates in a consolidated city.
14 (d) After June 30, 2017, and before July 1, 2019, in addition to the
15 counties listed under subsection (c), the prekindergarten pilot program
16 includes eligible providers in fifteen (15) additional counties. In
17 determining which counties are designated as pilot counties under this
18 subsection, the office shall give preference to counties that are
19 primarily rural. The total number of grants the office awards to eligible
20 children in a county designated under this subsection during a state
21 fiscal year may not be less than the total number of grants the office
22 awarded to eligible children in that county during the immediately
23 preceding state fiscal year unless the office determines that there is an
24 insufficient number of eligible children or eligible providers in the
25 county to justify the total number of grants for that county.
26 (e) In addition to the counties listed in subsection (c) and counties
27 designated under subsection (d), the prekindergarten pilot program
28 includes eligible providers in any county in Indiana.
29 (f) Subject to the requirements of this chapter, the office shall
30 determine:
31 (1) the eligibility requirements, application process, and selection
32 process for awarding grants under the prekindergarten pilot
33 program;
34 (2) the administration and reporting requirements for:
35 (A) eligible providers; and
36 (B) potential eligible providers or existing eligible providers;
37 participating in the prekindergarten pilot program; and
38 (3) with the assistance of the early learning advisory committee,
39 an appropriate outcomes based accountability system for:
40 (A) eligible providers; and
41 (B) potential eligible providers or existing eligible providers.
42 (g) Before implementing the prekindergarten pilot program, the
2023 IN 437—LS 6305/DI 120 5
1 office shall submit the provisions of the prekindergarten pilot program
2 to the state board of education for the state board of education's review
3 and comment.
4 (h) The office shall, subject to the availability of funding, determine
5 the number of eligible children who will participate in the
6 prekindergarten pilot program. After December 31, 2019, the office
7 shall, subject to the availability of funding, determine the number of
8 limited eligibility children who will participate in the prekindergarten
9 pilot program.
10 SECTION 6. IC 12-17.2-7.2-7.2, AS AMENDED BY P.L.268-2019,
11 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2023]: Sec. 7.2. (a) For an eligible child to qualify for a grant
13 under this chapter, the eligible child must reside with a parent or
14 guardian who is:
15 (1) working or attending a job training or an educational program;
16 or
17 (2) actively seeking employment, subject to the approval by the
18 United States Department of Health and Human Services as
19 provided in 45 CFR 98.21.
20 (b) For a limited eligibility child to qualify for a grant under this
21 chapter, the limited eligibility child must reside with a parent or
22 guardian who:
23 (1) is working or attending a job training or an educational
24 program;
25 (2) is actively seeking employment, subject to the approval by the
26 United States Department of Health and Human Services as
27 provided in 45 CFR 98.21; or
28 (3) receives Social Security Disability Insurance or Supplemental
29 Security Income benefits.
30 (c) (b) Before the office may award a grant to an eligible or limited
31 eligibility child under this chapter, the office shall require that a parent
32 or guardian of the eligible or limited eligibility child agree to the
33 following:
34 (1) The eligible or limited eligibility child will attend the
35 prekindergarten program of an eligible provider selected by the
36 parent or guardian for the full duration of the prekindergarten
37 program year.
38 (2) The parent or guardian will not transfer to another
39 prekindergarten program during the prekindergarten program
40 year.
41 (3) The eligible or limited eligibility child will attend the
42 prekindergarten program at least eighty-five percent (85%) of the
2023 IN 437—LS 6305/DI 120 6
1 days that the prekindergarten program is provided.
2 (4) The parent or guardian will allow the eligible or limited
3 eligibility child to participate in an external evaluation conducted
4 by researchers, including the kindergarten readiness assessment
5 and measuring of developmental and academic progress.
6 (5) The parent or guardian will participate in family engagement
7 and involvement activities offered by the selected prekindergarten
8 program, including meetings with the eligible or limited eligibility
9 child's teacher to discuss the eligible or limited eligibility child's
10 progress or any other conference concerning the eligible or
11 limited eligibility child that is requested by the eligible provider.
12 (6) The parent or guardian will complete the necessary forms for
13 the eligible child or limited eligibility child to receive a student
14 test number from the department of education.
15 (7) The parent or guardian will send the eligible or limited
16 eligibility child to kindergarten.
17 (8) The parent or guardian will read to the eligible or limited
18 eligibility child each week.
19 (9) Any other condition the office determines is appropriate.
20 (d) (c) Priority may be given to an eligible or limited eligibility child
21 under this section if a parent or guardian of the eligible or limited
22 eligibility child is:
23 (1) involved in activities that improve the parent's or guardian's
24 education; or
25 (2) involved in job training.
26 SECTION 7. IC 12-17.2-7.2-7.3, AS AMENDED BY P.L.268-2019,
27 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2023]: Sec. 7.3. The office shall require, for an eligible
29 provider to enroll in the prekindergarten pilot program, that the eligible
30 provider agree to the following:
31 (1) Comply on a continuing basis with the requirements under this
32 chapter and rules for participation established by the office.
33 (2) Maintain eligibility under this chapter throughout the
34 prekindergarten program year.
35 (3) Report immediately any changes in eligibility status to the
36 office, including the eligible provider's loss of national or regional
37 accreditation.
38 (4) Participate in any training and mandatory meetings required
39 by the office.
40 (5) Participate in all onsite visits conducted by the office,
41 including fiscal auditing activities with regard to the
42 prekindergarten pilot program and prekindergarten program
2023 IN 437—LS 6305/DI 120 7
1 activity monitoring.
2 (6) Allow families of eligible or limited eligibility children
3 enrolled in the prekindergarten program of the eligible provider
4 to visit at any time the prekindergarten program is in operation.
5 (7) Maintain accurate online attendance records through the
6 attendance portal for eligible or limited eligibility children
7 enrolled in the prekindergarten pilot program and submit
8 attendance records as required by the office.
9 (8) Offer parental engagement and involvement activities in the
10 prekindergarten program of the eligible provider in alignment
11 with the family engagement framework adopted by the early
12 learning advisory committee established by IC 12-17.2-3.8-5.
13 (9) Complete, within the period established by the office, the
14 Indiana early childhood family engagement toolkit, including the
15 family engagement self-assessment, adopted by the early learning
16 advisory committee.
17 (10) Share information on the family engagement self-assessment
18 described in subdivision (9) as required by the office.
19 (11) Participate in research studies as required by the office.
20 (12) Enforce minimum attendance requirements of at least
21 eighty-five percent (85%) of the days that the prekindergarten
22 program of the eligible provider is offered to an eligible or limited
23 eligibility child.
24 (13) Inform the office that an eligible or limited eligibility child
25 has withdrawn from the prekindergarten program of the eligible
26 provider not later than five (5) days after the eligible or limited
27 eligibility child is withdrawn.
28 (14) That retroactive repayment to the state may be required or
29 future payments may be adjusted as a result of the withdrawal of
30 an eligible or limited eligibility child or changes in the law.
31 (15) Maintain records of participation by a family of an eligible
32 or limited eligibility child in family engagement activities and
33 submit records as required by the office.
34 (16) Promote an eligible or limited eligibility child's social,
35 emotional, and behavioral health and eliminate or severely limit
36 the use of expulsion, suspension, and other exclusionary
37 discipline practices.
38 (17) Use the exclusionary discipline practices described in
39 subdivision (16) only as a last resort in extraordinary
40 circumstances when there is a determination of a serious safety
41 threat that cannot otherwise be reduced or eliminated by the
42 provision of reasonable modifications.
2023 IN 437—LS 6305/DI 120 8
1 (18) Inform and receive approval from the office before the
2 eligible provider expels, suspends, or uses other exclusionary
3 discipline practices.
4 (19) Assist a parent or guardian, upon request by the parent or
5 guardian, in obtaining information from, referral to, or both
6 information from and referral to, the public school that serves the
7 attendance area in which the parent or guardian resides for an
8 educational evaluation and determination of eligibility for special
9 education services if developmental delays or reasons to suspect
10 a disability are observed by the parent, guardian, or teacher of an
11 eligible or limited eligibility child during the prekindergarten
12 program year.
13 SECTION 8. IC 12-17.2-7.2-7.4, AS AMENDED BY P.L.268-2019,
14 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2023]: Sec. 7.4. (a) To qualify as a potential eligible provider
16 or existing eligible provider, an applicant must:
17 (1) provide an expansion plan to the office that details the
18 potential eligible provider's or existing eligible provider's plan to:
19 (A) increase the capacity of providers of qualified early
20 education services to serve a greater number of eligible or
21 limited eligibility children;
22 (B) increase the number of providers of qualified early
23 education services; or
24 (C) increase the capacity as described in clause (A) and
25 increase the number as described in clause (B);
26 (2) comply with the agreement with the office concerning the plan
27 under subdivision (1) and the use of a grant awarded under this
28 chapter;
29 (3) agree:
30 (A) to operate as an eligible provider; or
31 (B) that the applicant intends to operate as an eligible
32 provider;
33 (4) agree that the applicant will not use any grant funds awarded
34 under this section for capital expenditures; and
35 (5) comply with any other standards and procedures established
36 under this chapter.
37 (b) Subject to subsections (c) and (d), the office may award a grant
38 to an applicant that meets the requirements of subsection (a).
39 (c) The office may not use more than a total of twenty percent (20%)
40 of the money in the pilot fund each state fiscal year:
41 (1) for grants awarded under this chapter to potential eligible
42 providers and existing eligible providers for expansion plans; and
2023 IN 437—LS 6305/DI 120 9
1 (2) to meet any state match amounts required for a federal grant
2 described in subsection (f).
3 (d) The office may not award grant funds under this section to an
4 applicant for any of the following:
5 (1) The purchase of land or a building.
6 (2) The construction or expansion of a building.
7 (e) If a potential eligible provider or existing eligible provider fails
8 to:
9 (1) use the grant funds in accordance with the expansion plan
10 described in subsection (a); or
11 (2) comply with the agreement entered into with the office under
12 subsection (a);
13 the potential eligible provider or existing eligible provider shall repay
14 to the office the total amount of the grant awarded to the potential
15 eligible provider or existing eligible provider under this chapter.
16 (f) The office may use money in the pilot fund that is allocated for
17 expansion plans under this section for a state fiscal year to meet any
18 state match amounts required for a federal grant if the purpose of the
19 federal grant is that the grant money be used for increasing:
20 (1) the capacity;
21 (2) the number; or
22 (3) both the capacity and number;
23 of providers of early education services for children four (4) years of
24 age.
25 SECTION 9. IC 12-17.2-7.2-7.8, AS AMENDED BY P.L.268-2019,
26 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2023]: Sec. 7.8. (a) The office shall make random onsite
28 inspections each year, as determined necessary by the office, at the
29 facility of:
30 (1) an eligible provider; or
31 (2) a potential eligible provider or existing eligible provider;
32 that receives a grant under this chapter.
33 (b) The office may determine that an eligible provider or potential
34 eligible provider or existing eligible provider is not eligible to receive
35 a grant under the prekindergarten pilot program if the eligible provider
36 or potential eligible provider or existing eligible provider:
37 (1) fails to comply with this chapter; or
38 (2) refuses to allow, during normal business hours, the office or
39 an agent of the office to inspect the facility at which the eligible
40 provider or potential eligible provider or existing eligible provider
41 operates a child care program for eligible or limited eligibility
42 children.
2023 IN 437—LS 6305/DI 120 10
1 SECTION 10. IC 12-17.2-7.2-8, AS AMENDED BY P.L.268-2019,
2 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 8. (a) The office shall determine:
4 (1) which applicants shall be awarded a grant; and
5 (2) subject to subsection (b) and to the availability of funding, the
6 amount of each grant.
7 (b) At least five percent (5%) but not more than fifty percent (50%)
8 of the:
9 (1) tuition for eligible or limited eligibility children under the
10 prekindergarten pilot program; or
11 (2) expansion plan described in section 7.4(a) of this chapter;
12 during the state fiscal year must be paid from donations, gifts, grants,
13 bequests, and other funds received from a private entity or person, from
14 the United States government, or from other sources (excluding funds
15 from a grant provided under this chapter and excluding other state
16 funding). The office may receive and administer grants on behalf of the
17 prekindergarten pilot program. The grants shall be distributed by the
18 office to fulfill the requirements of this subsection.
19 (c) The amount of a grant made under the pilot program to an
20 eligible or limited eligibility child:
21 (1) who attends a prekindergarten program full time must equal
22 at least two thousand five hundred dollars ($2,500) during the
23 state fiscal year; and
24 (2) may not exceed six thousand eight hundred dollars ($6,800)
25 from state money provided under this chapter during the state
26 fiscal year.
27 SECTION 11. IC 12-17.2-7.2-8.1, AS AMENDED BY
28 P.L.216-2021, SECTION 5, IS AMENDED TO READ AS FOLLOWS
29 [EFFECTIVE JULY 1, 2023]: Sec. 8.1. (a) If funds are appropriated by
30 the general assembly, grants to limited eligibility children may not
31 exceed:
32 (1) twenty percent (20%) of the amount appropriated for a
33 particular state fiscal year if families with children four (4) years
34 of age are on the waiting list for funds available under the Child
35 Care Development Fund; or
36 (2) forty percent (40%) of the amount appropriated for a
37 particular state fiscal year if there is no waiting list for children
38 four (4) years of age for funds available under the Child Care
39 Development Fund.
40 (b) During the priority enrollment period, The office shall provide
41 grants to eligible children in the prekindergarten pilot program on a
42 first-come, first-served basis to the extent of available funding. The
2023 IN 437—LS 6305/DI 120 11
1 office shall date stamp and reserve applications for limited eligibility
2 children received during the priority enrollment period for processing
3 during the extended enrollment period.
4 (c) During the extended enrollment period, the office shall provide
5 grants to eligible children and limited eligibility children in the
6 prekindergarten pilot program on a first-come, first-served basis to the
7 extent of available funding and in accordance with the limit established
8 by subsection (a).
9 SECTION 12. IC 12-17.2-7.2-13.1, AS ADDED BY P.L.268-2019,
10 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2023]: Sec. 13.1. The office shall post monthly on the office's
12 Internet web site website the total enrollment of and number of grants
13 awarded to
14 (1) all eligible children (before January 1, 2020); and
15 (2) after December 31, 2019, both:
16 (A) all eligible children; and
17 (B) all limited eligibility children;
18 all eligible children for each county that participates in the
19 prekindergarten pilot program.
20 SECTION 13. IC 12-17.2-7.2-13.5, AS AMENDED BY
21 P.L.156-2020, SECTION 60, IS AMENDED TO READ AS
22 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 13.5. (a) The
23 prekindergarten pilot program fund is established to:
24 (1) provide grants to eligible or limited eligibility children for
25 qualified early education services under this chapter;
26 (2) carry out the longitudinal study described in section 12 of this
27 chapter;
28 (3) provide grants to potential eligible providers and existing
29 eligible providers as set forth in section 7.4 of this chapter; and
30 (4) make payments to reimburse costs incurred to provide
31 in-home early education services under IC 12-17.2-7.5.
32 (b) The fund consists of:
33 (1) money appropriated to the fund by the general assembly; and
34 (2) grants or gifts to the fund.
35 (c) The fund shall be administered by the office.
36 (d) The expenses of administering the fund shall be paid from
37 money in the fund.
38 (e) Money in the fund is continuously appropriated for the purposes
39 provided under this article.
40 (f) The treasurer of state shall invest the money in the fund not
41 currently needed to meet the obligations of the fund in the same
42 manner as other public funds may be invested.
2023 IN 437—LS 6305/DI 120 12
1 SECTION 14. IC 21-12-6-5, AS AMENDED BY P.L.92-2020,
2 SECTION 99, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 5. (a) Unless a student qualifies under subsection
4 (b), to qualify to participate in the program, a student must meet the
5 following requirements:
6 (1) Be a resident of Indiana.
7 (2) Be:
8 (A) enrolled in grade 7 or 8 at a:
9 (i) public school; or
10 (ii) nonpublic school that is accredited either by the state
11 board of education or by a national or regional accrediting
12 agency whose accreditation is accepted as a school
13 improvement plan under IC 20-31-4.1-2; or
14 (B) otherwise qualified under the rules of the commission that
15 are adopted under IC 21-18.5-4-9(2) to include students who
16 are in grades other than grade 8 as eligible students.
17 (3) Be a member of a household with an annual income of not
18 more than the amount required for the individual to qualify for
19 free or reduced priced lunches under the national school lunch
20 program, that does not exceed three hundred percent (300%)
21 of the federal poverty level, as determined for the immediately
22 preceding taxable year for the household for which the student
23 was claimed as a dependent.
24 (4) Agree, in writing, together with the student's custodial parents
25 or guardian, that the student will:
26 (A) graduate from a secondary school located in Indiana that
27 meets the admission criteria of an eligible institution;
28 (B) not illegally use controlled substances (as defined in
29 IC 35-48-1-9);
30 (C) not commit a crime or an infraction described in
31 IC 9-30-5;
32 (D) not commit any other crime or delinquent act (as described
33 in IC 31-37-1-2 or IC 31-37-2-2 through IC 31-37-2-5 (or
34 IC 31-6-4-1(a)(1) through IC 31-6-4-1(a)(5) before their
35 repeal));
36 (E) timely apply, when the eligible student is a senior in high
37 school:
38 (i) for admission to an eligible institution; and
39 (ii) for any federal and state student financial assistance
40 available to the eligible student to attend an eligible
41 institution;
42 (F) achieve a cumulative grade point average upon graduation
2023 IN 437—LS 6305/DI 120 13
1 of:
2 (i) at least 2.0, if the student graduates from high school
3 before July 1, 2014; and
4 (ii) at least 2.5, if the student graduates from high school
5 after June 30, 2014;
6 on a 4.0 grading scale (or its equivalent if another grading
7 scale is used) for courses taken during grades 9, 10, 11, and
8 12; and
9 (G) complete an academic success program required under the
10 rules adopted by the commission, if the student initially enrolls
11 in high school after June 30, 2013.
12 (b) A student qualifies to participate in the program if the student:
13 (1) before or during grade 7 or grade 8, is placed by or with the
14 consent of the department of child services, by a court order, or by
15 a child placing agency in:
16 (A) a foster family home;
17 (B) the home of a relative or other unlicensed caretaker;
18 (C) a child caring institution; or
19 (D) a group home;
20 (2) meets the requirements in subsection (a)(1) through (a)(2);
21 and
22 (3) agrees in writing, together with the student's caseworker (as
23 defined in IC 31-9-2-11) or legal guardian, to the conditions set
24 forth in subsection (a)(4).
25 (c) The commission may require that an applicant apply
26 electronically to participate in the program using an online Internet
27 application on the commission's Internet web site. website.
28 SECTION 15. IC 21-12-6-6, AS AMENDED BY P.L.165-2016,
29 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2023]: Sec. 6. (a) A student may apply to the commission for
31 a scholarship. To qualify for a scholarship, the student must meet the
32 following requirements:
33 (1) Be an eligible student who qualified to participate in the
34 program under section 5 of this chapter.
35 (2) Be a resident of Indiana.
36 (3) Be a graduate from a secondary school located in Indiana that
37 meets the admission criteria of an eligible institution and have
38 achieved a cumulative grade point average in high school of:
39 (A) at least 2.0 on a 4.0 grading scale, if the student is
40 expected to graduate from high school before July 1, 2014; and
41 (B) at least 2.5 on a 4.0 grading scale, if the student is
42 expected to graduate from high school after June 30, 2014.
2023 IN 437—LS 6305/DI 120 14
1 (4) Have applied to attend and be accepted to attend as a full-time
2 student an eligible institution.
3 (5) Certify in writing that before the student's graduation from
4 high school the student:
5 (A) did not illegally use controlled substances (as defined in
6 IC 35-48-1-9);
7 (B) did not illegally consume alcoholic beverages;
8 (C) did not commit any other crime or a delinquent act (as
9 described in IC 31-37-1-2 or IC 31-37-2-2 through
10 IC 31-37-2-5 (or IC 31-6-4-1(a)(1) through IC 31-6-4-1(a)(5)
11 before their repeal));
12 (D) timely filed an application for other types of financial
13 assistance available to the student from the state or federal
14 government; and
15 (E) completed an academic success program required under
16 the rules adopted by the commission.
17 (6) Submit to the commission all the information and evidence
18 required by the commission to determine eligibility as a
19 scholarship applicant.
20 (7) This subdivision applies only to applicants who initially enroll
21 in the program under section 5 of this chapter or IC 21-12-6.5-2
22 after June 30, 2011. For purposes of this chapter, applicants who
23 are enrolled in the program before July 1, 2011, will not have an
24 income or financial resources test applied to them when they
25 subsequently apply for a scholarship. Have a lack of financial
26 resources reasonably available to the applicant, as defined by the
27 commission, that, in the absence of an award under this chapter,
28 would deter the scholarship applicant from completing the
29 applicant's education at the approved postsecondary educational
30 institution that the applicant has selected and that has accepted
31 the applicant.
32 (8) Meet any other minimum criteria established by the
33 commission.
34 (b) This section applies to an individual who graduates from high
35 school after December 31, 2011. To be eligible for a scholarship under
36 this section, a student must initially attend an eligible institution
37 described in subsection (a)(4) not later than the fall semester (or its
38 equivalent, as determined by the commission) in the year immediately
39 following the year in which the student graduates from high school.
40 (c) Beginning after June 30, 2023, the commission shall:
41 (1) coordinate with the department of education to identify
42 each student who qualifies for a scholarship under the
2023 IN 437—LS 6305/DI 120 15
1 program each year;
2 (2) automatically enroll those students identified under
3 subdivision (1) for participation in the program without
4 application; and
5 (3) provide written notification of the approval to the student.
6 SECTION 16. IC 21-12-16-8, AS ADDED BY P.L.105-2016,
7 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2023]: Sec. 8. (a) Subject to subsections (b) and (c), if an
9 applicant meets the requirements under this chapter, the commission
10 may award, for not more than four (4) academic years, a scholarship to
11 the applicant in an amount of seven thousand five hundred dollars
12 ($7,500) for each academic year that the applicant attends the
13 accredited postsecondary educational institution approved by the
14 commission under section 10 of this chapter.
15 (b) The commission may not do the following:
16 (1) award a scholarship under this chapter in an amount of more
17 than a total of thirty thousand dollars ($30,000) to an individual
18 applicant.
19 (2) Award scholarships under this chapter to more than two
20 hundred (200) new applicants each academic year.
21 (c) If the total amount to be distributed from the fund in a state fiscal
22 year exceeds the amount available for distribution, the amount to be
23 distributed to each eligible applicant shall be proportionately reduced
24 so that the total reductions equal the amount of the excess.
25 SECTION 17. IC 21-12-16-17.5 IS ADDED TO THE INDIANA
26 CODE AS A NEW SECTION TO READ AS FOLLOWS
27 [EFFECTIVE JULY 1, 2023]: Sec. 17.5. (a) For the state fiscal year
28 beginning July 1, 2023, and ending June 30, 2024, ten million
29 dollars ($10,000,000) is appropriated from the state general fund
30 to the next generation Hoosier educators scholarship fund for the
31 purpose of the fund.
32 (b) For the state fiscal year beginning July 1, 2024, and ending
33 June 30, 2025, ten million dollars ($10,000,000) is appropriated
34 from the state general fund to the next generation Hoosier
35 educators scholarship fund for the purpose of the fund.
36 SECTION 18. IC 21-13-1-5, AS AMENDED BY P.L.148-2016,
37 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2023]: Sec. 5. "Fund":
39 (1) for purposes of IC 21-13-2, refers to the William A. Crawford
40 minority teacher scholarship fund established by IC 21-13-2-1;
41 (2) for purposes of IC 21-13-4, refers to the National Guard
42 tuition supplement program fund established by IC 21-13-4-1;
2023 IN 437—LS 6305/DI 120 16
1 (3) for purposes of IC 21-13-5, refers to the National Guard
2 scholarship extension fund established by IC 21-13-5-1;
3 (4) for purposes of IC 21-13-6, refers to the primary care
4 physician loan forgiveness fund established by IC 21-13-6-3; and
5 (5) for purposes of IC 21-13-6.5, refers to the medical residency
6 education fund established by IC 21-13-6.5-1.
7 SECTION 19. IC 21-13-6-1, AS ADDED BY P.L.170-2009,
8 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2023]: Sec. 1. As used in this chapter, "primary care
10 physician" "eligible physician" means a physician who practices in
11 any of the following areas:
12 (1) Family practice.
13 (2) Pediatrics.
14 (3) Obstetrics and gynecology.
15 (4) Internal medicine.
16 (5) Psychiatry.
17 (6) Any other area the commission determines is an
18 underserved area in Indiana after consulting with the office
19 of the secretary of family and social services and the Indiana
20 department of health.
21 SECTION 20. IC 21-13-6-2, AS ADDED BY P.L.170-2009,
22 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2023]: Sec. 2. (a) The primary care physician loan forgiveness
24 program is established.
25 (b) The commission shall administer the primary care physician
26 loan forgiveness program.
27 SECTION 21. IC 21-13-6-3, AS ADDED BY P.L.170-2009,
28 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2023]: Sec. 3. (a) The primary care physician loan forgiveness
30 fund is established to encourage and promote qualified physicians to
31 pursue a medical career in Indiana.
32 (b) The fund consists of the following:
33 (1) Appropriations by the general assembly.
34 (2) Gifts to the fund.
35 SECTION 22. IC 21-13-6-4, AS ADDED BY P.L.170-2009,
36 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2023]: Sec. 4. (a) The commission shall administer the fund.
38 (b) The expenses of administering the fund shall be paid from
39 money in the fund.
40 (c) The treasurer of state shall invest the money in the fund not
41 currently needed to meet the obligations of the fund in the same
42 manner as other public funds. Interest that accrues from those
2023 IN 437—LS 6305/DI 120 17
1 investments shall be deposited in the fund.
2 (d) Money in the fund at the end of a fiscal year does not revert to
3 the state general fund but remains available to be used to provide
4 money for student loan forgiveness payments under this chapter.
5 (e) The commission shall manage payments from the fund.
6 SECTION 23. IC 21-13-6-5, AS ADDED BY P.L.170-2009,
7 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2023]: Sec. 5. (a) The money in the fund must be used to
9 provide annual student loan forgiveness payments to qualified primary
10 care eligible physicians who are residents of Indiana and practice
11 medicine in Indiana.
12 (b) Subject to section 8 of this chapter, a student loan forgiveness
13 payment awarded in a particular year under this section is equal to the
14 lesser of the following amounts:
15 (1) The balance of the physician's total amount of student loans.
16 (2) Five thousand dollars ($5,000). An amount that is:
17 (A) at least twenty-five thousand dollars ($25,000); but
18 (B) not more than fifty thousand dollars ($50,000);
19 as determined for each physician by the commission taking
20 into consideration the need for the physician's area of
21 practice.
22 (c) A primary care physician is eligible for a student loan
23 forgiveness payment under this section for up to ten (10) years
24 beginning the first year of employment in Indiana as an eligible
25 physician provided that each year that the individual meets the
26 qualifications under section 6 of this chapter each year.
27 SECTION 24. IC 21-13-6-6, AS ADDED BY P.L.170-2009,
28 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2023]: Sec. 6. To qualify for a student loan forgiveness
30 payment from the fund, an individual must:
31 (1) be a graduate of an Indiana medical school;
32 (2) have completed a medical residency in Indiana and
33 become employed in Indiana upon completion of the
34 residency;
35 (1) (3) be a resident of Indiana;
36 (2) (4) be licensed as a physician under IC 25-22.5;
37 (3) (5) practice as a primary care an eligible physician;
38 (4) (6) conduct the majority of the individual's medical practice
39 in Indiana;
40 (5) (7) have an outstanding student loan balance at the beginning
41 of the calendar year; and
42 (6) (8) be approved by the commission.
2023 IN 437—LS 6305/DI 120 18
1 SECTION 25. IC 21-13-6-7, AS ADDED BY P.L.170-2009,
2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 7. The medical education board shall annually
4 make available to the commission the most recent information
5 concerning the number of primary care eligible physicians who are
6 serving as medical residents in Indiana.
7 SECTION 26. IC 21-13-6-8, AS ADDED BY P.L.170-2009,
8 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2023]: Sec. 8. The commission shall annually allocate the
10 available money in the fund to each primary care physician approved
11 under this chapter in proportion to the total number of primary care
12 physicians approved and the amount awarded under this chapter.
13 SECTION 27. IC 21-13-6-9, AS ADDED BY P.L.170-2009,
14 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2023]: Sec. 9. Each:
16 (1) primary care physician who applies under this chapter; and
17 (2) primary care physician approved under this chapter;
18 shall provide to the commission any information that the commission
19 determines is necessary to administer this chapter.
20 SECTION 28. IC 21-13-6-10 IS ADDED TO THE INDIANA
21 CODE AS A NEW SECTION TO READ AS FOLLOWS
22 [EFFECTIVE JULY 1, 2023]: Sec. 10. (a) For the state fiscal year
23 beginning July 1, 2023, and ending June 30, 2024, ten million
24 dollars ($10,000,000) is appropriated from the state general fund
25 to the physician loan forgiveness fund to be used for the purposes
26 of the fund.
27 (b) For the state fiscal year beginning July 1, 2024, and ending
28 June 30, 2025, ten million dollars ($10,000,000) is appropriated
29 from the state general fund to the physician loan forgiveness fund
30 to be used for the purposes of the fund.
31 SECTION 29. IC 21-13-6.5-4 IS ADDED TO THE INDIANA
32 CODE AS A NEW SECTION TO READ AS FOLLOWS
33 [EFFECTIVE JULY 1, 2023]: Sec. 4. (a) For the state fiscal year
34 beginning July 1, 2023, and ending June 30, 2024, ten million
35 dollars ($10,000,000) is appropriated from the state general fund
36 to the medical residency education fund for the purposes of the
37 fund.
38 (b) For the state fiscal year beginning July 1, 2024, and ending
39 June 30, 2025, ten million dollars ($10,000,000) is appropriated
40 from the state general fund to the medical residency education
41 fund for the purposes of the fund.
2023 IN 437—LS 6305/DI 120