Introduced Version
SENATE BILL No. 143
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-19-3-32; IC 20-51.4.
Synopsis: Education matters. Requires the department of education to
prepare and submit a report that includes the department's
recommendations regarding the major themes and content areas that
should be developed and maintained in Indiana education law. Amends
the: (1) definition of "eligible student" for purposes of eligibility under
the Indiana education scholarship account program (program); (2)
definition of "ESA qualified expenses" under the program to include
additional items; and (3) state fiscal year used to determine the annual
grant amount under the program. Provides that the treasurer of state
shall accept applications July 1 through June 30 of each year for the
immediately following school year. (Current law requires applications
to be submitted for an eligible student not later than September 1 for
the immediately following school year.) Establishes requirements
regarding using grants under the program for computer hardware or
other technological devices. Removes the following provisions: (1)
Certain program agreement requirements regarding enrollment in a
school that receives tuition support. (2) References in the program
provisions regarding plans developed under Section 504 of the federal
Rehabilitation Act of 1973.
Effective: Upon passage; July 1, 2024.
Buchanan
January 9, 2024, read first time and referred to Committee on Education and Career
Development.
2024 IN 143—LS 6513/DI 110 Introduced
Second Regular Session of the 123rd General Assembly (2024)
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
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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 2023 Regular Session of the General Assembly.
SENATE BILL No. 143
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 20-19-3-32 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 32. (a) The department shall do the
4 following:
5 (1) Review Title 20 and other applicable state education laws
6 and prepare a report that includes the department's
7 recommendations regarding the major themes and content
8 areas that should be developed and maintained in Indiana
9 education law.
10 (2) Submit, not later than November 1, 2024, the report
11 prepared under subdivision (1) to the following in an
12 electronic format under IC 5-14-6:
13 (A) The legislative council.
14 (B) The chairperson of the senate standing committee that
15 has subject matter jurisdiction over education issues.
16 (C) The chairperson of the house of representatives
17 standing committee that has subject matter jurisdiction
2024 IN 143—LS 6513/DI 110 2
1 over education issues.
2 (b) This section expires July 1, 2025.
3 SECTION 2. IC 20-51.4-2-4, AS ADDED BY P.L.165-2021,
4 SECTION 180, IS AMENDED TO READ AS FOLLOWS
5 [EFFECTIVE JULY 1, 2024]: Sec. 4. "Eligible student" refers to an
6 individual who:
7 (1) has legal settlement in Indiana; and
8 (2) is at least five (5) years of age and less than twenty-two (22)
9 years of age on the date in the school year specified in
10 IC 20-33-2-7.
11 (3) is a student with a disability at the time the account is
12 established who requires special education and for whom:
13 (A) an individualized education program;
14 (B) a service plan developed under 511 IAC 7-34; or
15 (C) a choice special education plan developed under 511
16 IAC 7-49;
17 has been developed; and
18 (4) meets the annual income qualification requirement for a
19 choice scholarship student under IC 20-51-1.
20 SECTION 3. IC 20-51.4-2-9, AS AMENDED BY P.L.202-2023,
21 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2024]: Sec. 9. (a) "ESA qualified expenses" refers to the
23 following expenses provided by an ESA participating entity related to
24 the education of an eligible student for which scholarship money in an
25 ESA account may be used:
26 (1) Tuition and fees at a qualified school, public school, or other
27 ESA participating entity.
28 (2) Fees for:
29 (A) national norm referenced or criterion referenced
30 examinations;
31 (B) advanced placement examinations, Cambridge
32 International courses, International Baccalaureate courses, or
33 College-Level Examination Program (CLEP) examinations; or
34 (C) statewide assessments associated with industry recognized
35 credentials.
36 (3) Educational services for an eligible student who is a student
37 with a disability.
38 (4) Payments associated with the use of paraprofessional or
39 educational aides.
40 (5) Services contracted for and provided by a school corporation,
41 charter school, magnet school, or qualified school, including:
42 (A) individual classes;
2024 IN 143—LS 6513/DI 110 3
1 (B) extracurricular activities or programs; or
2 (C) additional programs, resources, or staffing defined in the
3 student's education plan.
4 (6) Occupational therapy for a student with a disability, provided
5 in accordance with the eligible student's individualized education
6 program developed under IC 20-35 or service plan developed
7 under 511 IAC 7-34.
8 (7) Subject to IC 20-51.4-4-7, fees for transportation paid to a
9 fee-for-service transportation provider for the eligible student to
10 travel to and from an approved special education service provider.
11 (8) Tuition and fees to attend training programs and camps that
12 have a focus on:
13 (A) vocational skills;
14 (B) academic skills;
15 (C) life skills;
16 (D) independence; or
17 (E) soft job skills that are character traits and interpersonal
18 skills that characterize a person's relationships with other
19 people.
20 (9) Additional services and therapies prescribed by the eligible
21 student's treating physician in accordance with generally accepted
22 standards of care to improve outcomes for the student in addition
23 to any services currently being provided by the school, insurance,
24 or the Medicaid program.
25 (10) Fees for the management of the ESA account, as described
26 in IC 20-51.4-3-2(d).
27 (11) Expenses to enroll in and attend sequences, courses,
28 apprenticeships, and programs of study designated and approved
29 under IC 20-51.4-4.5-6 if the eligible student has enrolled in the
30 CSA program.
31 (12) Curricular materials or any supplemental materials
32 other than computer hardware or other technological devices
33 that are required to:
34 (A) be used by an eligible student at a qualified school,
35 public school, or other ESA participating entity; or
36 (B) administer curriculum.
37 (13) Expenses for autism spectrum disorder sensory
38 educational tools.
39 (14) Subject to IC 20-51.4-4-7.5, computer hardware or other
40 technological devices.
41 (15) Any other expense approved by the treasurer of state.
42 (b) This subsection does not apply to subsection (a)(3), (a)(6),
2024 IN 143—LS 6513/DI 110 4
1 (a)(7), or (a)(8). The term includes only services that are provided in
2 person. The term does not include any virtual or distance learning
3 services.
4 SECTION 4. IC 20-51.4-4-1, AS AMENDED BY P.L.201-2023,
5 SECTION 220, AND AS AMENDED BY P.L.202-2023, SECTION
6 49, AND AS AMENDED BY THE TECHNICAL CORRECTIONS
7 BILL OF THE 2024 GENERAL ASSEMBLY, IS CORRECTED AND
8 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
9 Sec. 1. (a) After June 30, 2022, A parent of an eligible student or an
10 emancipated eligible student may establish an Indiana education
11 scholarship account for the eligible student by entering into a written
12 agreement with the treasurer of state on a form prepared by the
13 treasurer of state. Beginning July 1, 2024, the treasurer of state shall
14 establish a date by which an application to establish an ESA account
15 accept applications July 1 through June 30 of each year for
16 participation in the ESA program for the upcoming immediately
17 following school year. must be submitted. However, for a school year
18 beginning after July 1, 2022, applications must be submitted for an
19 eligible student not later than September 1 for the immediately
20 following school year. The ESA account of an eligible student shall be
21 made in the name of the eligible student. The treasurer of state shall
22 make the agreement available on the Internet web site website of the
23 treasurer of state. To be eligible, a parent of an eligible student or an
24 emancipated eligible student wishing to participate in the ESA program
25 must agree that:
26 (1) a grant deposited in the eligible student's ESA account under
27 section 2 of this chapter and any interest that may accrue in the
28 ESA account will be used only for the eligible student's ESA
29 qualified expenses;
30 (2) if the eligible student participates in the CSA program, a
31 grant deposited in the eligible student's ESA account under
32 IC 20-51.4-4.5-3 and any interest that may accrue in the ESA
33 account will be used only for the eligible student's ESA qualified
34 expenses;
35 (2) (3) money in the ESA account when the ESA account is
36 terminated reverts to the state general fund;
37 (3) (4) the parent of the eligible student or the emancipated
38 eligible student will use part of the money in the ESA account:
39 (A) for the eligible student's study in the subject of reading,
40 grammar, mathematics, social studies, or science; or
41 (B) for use in accordance with the eligible student's:
42 (i) individualized education program;
2024 IN 143—LS 6513/DI 110 5
1 (ii) service plan developed under 511 IAC 7-34; or
2 (iii) choice special education plan developed under 511
3 IAC 7-49; or
4 (iv) plan developed under Section 504 of the federal
5 Rehabilitation Act of 1973, 29 U.S.C. 794;
6 (4) (5) the eligible student will not be enrolled in a school that
7 receives tuition support under IC 20-43; and
8 (5) (6) (5) the eligible student will take the statewide assessment,
9 as applicable based on the eligible student's grade level, as
10 provided under IC 20-32-5.1, or the assessment specified in the
11 eligible student's:
12 (A) individualized education program developed under
13 IC 20-35;
14 (B) service plan developed under 511 IAC 7-34; or
15 (C) choice special education plan developed under 511
16 IAC 7-49. or
17 (D) plan developed under Section 504 of the federal
18 Rehabilitation Act of 1973, 29 U.S.C. 794.
19 (b) A parent of an eligible student may enter into a separate
20 agreement under subsection (a) for each child of the parent. However,
21 not more than one (1) ESA account may be established for each eligible
22 student.
23 (c) The ESA account must be established under subsection (a) by a
24 parent of an eligible student or an emancipated eligible student for a
25 school year on or before a date established by the treasurer of state,
26 which must be at least thirty (30) days before the fall ADM count date
27 established by the state board fall count day of ADM established under
28 IC 20-43-4-3. A parent of an eligible student or an emancipated eligible
29 student may not enter into an agreement under this section or maintain
30 an ESA account under this chapter if the eligible student receives a
31 choice scholarship under IC 20-51-4 for the same school year. An
32 eligible student may not receive a grant under section 2 of this chapter
33 if the eligible student is currently included in a school corporation's
34 ADM count under IC 20-43-4.
35 (d) Except as provided in subsections (e) and (f), an agreement
36 made under this section is valid for one (1) school year while the
37 eligible student is in kindergarten through grade 12 and may be
38 renewed annually. Upon graduation, or receipt of a certificate of
39 completion under the eligible student's individualized education
40 program, the eligible student's ESA account is terminated.
41 (e) An agreement entered into under this section terminates
42 automatically for an eligible student if:
2024 IN 143—LS 6513/DI 110 6
1 (1) the eligible student no longer resides in Indiana while the
2 eligible student is eligible to receive grants under section 2 of this
3 chapter; or
4 (2) the ESA account is not renewed within three hundred
5 ninety-five (395) days after the date the ESA account was either
6 established or last renewed.
7 If an ESA account is terminated under this section, money in the
8 eligible student's ESA account, including any interest accrued, reverts
9 to the state general fund.
10 (f) An agreement made under this section for an eligible student
11 while the eligible student is in kindergarten through grade 12 may be
12 terminated before the end of the school year if the parent of the eligible
13 student or the emancipated eligible student notifies the treasurer of
14 state in a manner specified by the treasurer of state.
15 (g) A distribution made to an ESA account under section 2 of this
16 chapter is considered tax exempt as long as the distribution is used for
17 a an ESA qualified expense. The amount is subtracted from the
18 definition of adjusted federal gross income under IC 6-3-1-3.5 to the
19 extent the distribution used for the ESA qualified expense is included
20 in the taxpayer's adjusted federal gross income under the Internal
21 Revenue Code.
22 (h) The department shall establish a student test number as
23 described in IC 20-19-3-9.4 for each eligible student. The treasurer of
24 state shall provide the department information necessary for the
25 department to comply with this subsection.
26 SECTION 5. IC 20-51.4-4-4, AS AMENDED BY P.L.201-2023,
27 SECTION 224, AND AS AMENDED BY P.L.202-2023, SECTION
28 53, AND AS AMENDED BY THE TECHNICAL CORRECTIONS
29 BILL OF THE 2024 GENERAL ASSEMBLY, IS CORRECTED AND
30 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
31 Sec. 4. (a) Subject to sections 5 and 10 of this chapter, the annual grant
32 amount under section 2 of this chapter for an eligible student equals,
33 subject to subsection (b), ninety percent (90%) of the amount
34 determined in the last STEP of the following formula:
35 STEP ONE: Determine the school corporation in which the
36 eligible student has legal settlement.
37 STEP TWO: Determine the amount of state tuition support that
38 the school corporation identified under STEP ONE is eligible to
39 receive under IC 20-43-6 for the state fiscal year in which the
40 immediately preceding current school year begins. The amount
41 does not include amounts provided for special education grants
42 under IC 20-43-7, career and technical education grants under
2024 IN 143—LS 6513/DI 110 7
1 IC 20-43-8, or grants under IC 20-43-10, or an academic
2 performance grant under IC 20-43-10.5.
3 STEP THREE: Determine the result of:
4 (A) the STEP TWO amount; divided by
5 (B) the current ADM (as defined in IC 20-43-1-10) for the
6 school corporation identified under STEP ONE for the state
7 fiscal year used in STEP TWO.
8 (b) An eligible student may choose to receive special education
9 services from the school corporation required to provide the special
10 education services to the eligible student under 511 IAC 7-34-1.
11 However, if an eligible student described in subsection (a) chooses not
12 to receive special education or related services from a school
13 corporation required to provide the services to the eligible student
14 under 511 IAC 7-34-1, the ESA annual grant amount for the eligible
15 student shall, in addition to the amount described in subsection (a),
16 include the amount the school corporation would receive under
17 IC 20-43-7 for the eligible student if the eligible student attended the
18 school corporation.
19 (c) The ESA annual grant amounts provided in subsection (a) shall
20 be rounded as provided in IC 20-43-3-1(4).
21 SECTION 6. IC 20-51.4-4-7.5 IS ADDED TO THE INDIANA
22 CODE AS A NEW SECTION TO READ AS FOLLOWS
23 [EFFECTIVE JULY 1, 2024]: Sec. 7.5. A parent of an eligible
24 student or an emancipated eligible student may purchase computer
25 hardware or one (1) technological device as described in
26 IC 20-51.4-2-9(a)(14) only:
27 (1) one (1) time during a three (3) year period; and
28 (2) if the following apply:
29 (A) The computer hardware or other technological device
30 is used for the eligible student's educational needs.
31 (B) The treasurer of state approves the purchase of the
32 computer hardware or technological device.
33 SECTION 7. IC 20-51.4-5-3, AS AMENDED BY P.L.202-2023,
34 SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2024]: Sec. 3. (a) Each qualified school that is an ESA
36 participating entity that accepts payments for tuition and fees made
37 from an ESA account under the ESA program shall administer to its
38 eligible students, for the applicable grade levels as provided under
39 IC 20-32-5.1, the statewide assessment unless otherwise prescribed by
40 the eligible student's:
41 (1) individualized education program;
42 (2) service plan developed under 511 IAC 7-34; or
2024 IN 143—LS 6513/DI 110 8
1 (3) choice special education plan developed under 511 IAC 7-49.
2 or
3 (4) plan developed under Section 504 of the federal Rehabilitation
4 Act of 1973, 29 U.S.C. 794.
5 (b) Upon receipt of the statewide assessment test results, the
6 department shall, subject to the federal Family Educational Rights and
7 Privacy Act (20 U.S.C. 1232g) and any regulations adopted under that
8 act:
9 (1) aggregate the statewide assessment test results according to
10 the grade level, gender, race, and family income level of all
11 eligible students; and
12 (2) make the results determined under subdivision (1) available
13 on the department's website.
14 SECTION 8. An emergency is declared for this act.
2024 IN 143—LS 6513/DI 110