LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7340 NOTE PREPARED: Jan 14, 2025
BILL NUMBER: HB 1002 BILL AMENDED:
SUBJECT: Various Education Matters.
FIRST AUTHOR: Rep. Behning BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill removes and repeals various education provisions and expired education
provisions, including provisions concerning the following: (1) Secretary of Education criteria. (2) Certain
Department of Education (DOE) requirements. (3) The Advisory Committee on Career and Technical
Education. (4) Use of hearing examiners by the State Board of Education (SBOE). (5) Credit for retaking
a virtual course during certain time periods. (6) Family friendly school designations. (7) The Indiana Civic
Education Commission. (8) Discretionary directives to DOE. (9) The Program for the Advancement of Math
and Science. (10) Access to telecommunication services. (11) Elementary School Counselors, Social
Workers, and School Psychologists Program and Fund. (12) Grants for mental health counselor licenses for
school counselors. (13) the Arts Education Program. (14) The Geothermal Conversion Revolving Fund. (15)
Joint schools in adjacent states. (16) Clause requirements for certain charter school organizer documents.
(17) Required submission of economic interest information at the time a charter school organizer submits
a proposal for a charter school. (18) Required acknowledgment by a current authorizer regarding a proposal
by an existing charter school to another authorizer. (19) Requirements regarding a governing body of school
corporation (governing body) providing a noncharter school. (20) Charter requirements, including minimum
year, instruction, course, and annual performance target requirements. (21) Certain notice requirements from
an authorizer to an organizer that is not in compliance. (22) Certain nondiscrimination and acceptance of
credit requirements regarding a public noncharter school. (23) Indiana School for the Arts. (24) Allowing
the Board of Trustees of Vincennes University to establish a grammar school. (25) The timing of the election
of officers by a governing body. (26) Designation of certain committees by a governing body. (27) Governing
body use of funds for associations. (28) Required policies on contacting employment references. (29)
Developing and reviewing evidence based plans with parents for improving student behavior and discipline.
(30) Agreements regarding wage payment arrangements. (31) Requirements and limitations regarding
remediation programs. (32) Student identification card information. (33) Township trustees and the sale of
schoolhouses. (34) School health advisory councils and adoption of a school corporation policy on child
nutrition and physical activity. (35) Certain agreement requirements regarding joint programs. (36) Certain
requirements regarding the transfer of a student to another school. (37) Freeway school corporation and
Freeway School Program. (38) Policies, programs, and reports regarding criminal organization activity. (39)
Revocation of Coalition of Continuous Improvement school corporation's membership. (40) Transportation
HB 1002 1 program discretion. (41) Recommendations regarding certain powers and duties of DOE. (42) Certain
training and professional development requirements. (43) Certain teacher leave requirements. (44)
Ineligibility for state funds for adopting residence requirements. (45) Certain compensation included in
computing teacher's retirement benefit. (46) Penalty for failing to comply with working schedule
requirements. (47) Discretionary posting of poster of national motto and flags. (48) Discretionary
modification of graduation plan. (49) Requirements regarding certain writing, documents, and records. (50)
Required course on safety education. (51) Compilation of leaflets regarding hygiene, sanitary science, and
disease prevention. (52) Making a violation regarding teaching certain disease information an infraction. (53)
Certain elective courses and teachings. (54) Voluntary summer school program and joint summer school
program requirements. (55) Technology preparation curriculum. (56) Community or volunteer service
programs. (57) State Certificate of Biliteracy. (58) Nonsession school activities. (59) Requirements regarding
Indiana academic standards. (60) Strategic and continuous improvement and achievement plans. (61) Cultural
competency components of a school plan. (62) Student Educational Achievement Grants. (63) Remediation
Grant Program. (64) Postsecondary workforce training program remediation reduction. (65) Requirement
to provide an enrollment form for the Twenty-first Century Scholars Program to certain students. (66) Plan
requirements for high ability students. (67) Governor's Scholars Academy. (68) Seminary Township School
Fund. (69) Dual Credit Teacher Stipend Matching Grant Fund. (70) Student Enrichment Grants.
The bill merges and amends provisions regarding fund distribution upon the termination of a charter and the
cessation of a charter school. It amends the age eligibility for a member of a governing body. It also
establishes information that must be included in a consolidated audit by an organizer. This bill provides adult
high schools are excluded from all cohort based graduation rate calculations except to the extent required
under federal law. The bill amends the termination and notice requirements with regard to terminating a
transportation program. It relocates a provision regarding trauma informed classroom instruction curriculum
in teacher preparation programs. It provides that a provision that decreases state tuition support for failure
to meet student instructional day requirements does not apply to charter schools. The bill also provides that the
Secretary of Education (instead of the Governor) shall appoint the director of special education.
It makes technical and conforming changes.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Teachers in the Indiana General Assembly: IC 20-28-10-16 provides
that the Teachers’ Retirement Fund (TRF) defined benefit calculation includes the sum of the teacher’s salary
as a teacher plus the salary earned in that fiscal year as a member of the Indiana General Assembly. The bill
strikes IC 20-28-10-16, which could decrease the pension benefit that impacted members would be eligible
for at retirement. IC 5-10.4-5-7 also has a similar provision, but that provision only applies to teachers who
meet certain experience requirements in both the General Assembly and as a teacher. It is unknown at this
time which part of Indiana Code INPRS uses to calculate benefits. [According to the Indiana Legislator
Database, there were four members who were current or former teachers in 2023.]
Federal E-Rate Match Program: Provisions in the bill repeal statute related to the federal E-Rate Match
Program, including a requirement for the Department of Education (DOE) to help coordinate available
federal and state funding mechanisms to assist certain entities obtain access to telecommunication services
and equipment. It is unknown at this time if repealing this statute will impact state expenditures related to
assisting public schools cover their matching grant obligations. [In FY 2024, DOE awarded approximately
$3.4 M to help cover the matching grant obligations of public schools participating in the E-Rate Match
Program.]
HB 1002 2 Workload Changes: The bill will have minor workload impacts across a variety of agencies that would not
impact the staffing or resource needs of those agencies.
Explanation of State Revenues: Penalty Provision: The bill’s elimination of a Class C infraction could
reduce revenue from judgments to the General Fund. Additionally, court fee revenue that gets deposited into
various funds could also decrease. Any revenue impact would be minimal. The following linked document
describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil
violation cases.
Explanation of Local Expenditures: Transfer Students: The bill repeals existing statute allowing parents
to request a transfer for their child to a school corporation outside of the student’s legal settlement for better
accommodation reasons. This will decrease transferor school corporation transfer tuition expenditures.
Workload Changes: The bill has a variety of workload changes that should result in a net workload decrease
and some additional flexibility for public schools.
Explanation of Local Revenues: Seminary Township School Fund and Credit: The bill eliminates the
seminary township school fund in Vanderburgh County and repeals statute that uses money from that fund
to provide a credit against the property taxes owed by owners of certain land within a township of
Vanderburgh County. By eliminating the credit, property tax bills will increase for owners of the land,
possibly increasing property tax cap losses. In calendar year 2023, owners of certain land in Vanderburgh
County received about $65,000 in credits from the fund.
Transfer Tuition: Provisions in the bill are expected to decrease the number of students who transfer between
school corporations. This will reduce transfer tuition revenue received by transferee school corporations.
Penalty Provision: The bill’s elimination of a Class C infraction could reduce revenue that would have been
collected by certain local units. Any revenue impact would be minimal.
Federal E-Rate Match Program: It is currently unknown if the bill’s provisions will reduce or eliminate the
state assistance received by public schools participating in the federal E-Rate Match Program. [See
Explanation of State Expenditures.]
State Agencies Affected: Department of Education; State Board of Education; State Health Commissioner;
State Budget Agency; Department of Workforce Development; state educational institutions.
Local Agencies Affected: Local units in Vanderburgh County; public schools; Trial courts; local law
enforcement agencies.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual
Information Sources: Indiana Legislator Database: http://legdb.iga.in.gov/#
Department of Education.
Fiscal Analyst: Kelan Fong, 317-232-9592; Austin Spears, 317-234-9454
HB 1002 3