LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7340 NOTE PREPARED: Jan 27, 2025
BILL NUMBER: HB 1002 BILL AMENDED: Jan 27, 2025
SUBJECT: Various Education Matters.
FIRST AUTHOR: Rep. Behning BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: (Amended) 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) Clause requirements for certain charter school organizer documents. (16) Required
acknowledgment by a current authorizer regarding a proposal by an existing charter school to another
authorizer. (17) Requirements regarding a governing body of school corporation (governing body) providing
a noncharter school. (18) Charter requirements, including minimum year, instruction, and course
requirements. (19) Certain notice requirements from an authorizer to an organizer that is not in compliance.
(20) Certain nondiscrimination and acceptance of credit requirements regarding a public noncharter school.
(21) Indiana School for the Arts. (22) Allowing the Board of Trustees of Vincennes University to establish
a grammar school. (23) Designation of certain committees by a governing body. (24) Governing body use
of funds for associations. (25) Required policies on contacting employment references. (26) Developing and
reviewing evidence based plans with parents for improving student behavior and discipline. (27)
Requirements and limitations regarding remediation programs. (28) Township trustees and the sale of
schoolhouses. (29) School health advisory councils and adoption of a school corporation policy on child
nutrition and physical activity. (30) Certain agreement requirements regarding joint programs. (31) Certain
requirements regarding the transfer of a student to another school. (32) Freeway school corporation and
Freeway School Program. (33) Policies, programs, and reports regarding criminal organization activity. (34)
Revocation of Coalition of Continuous Improvement school corporation's membership. (35) Transportation
program discretion. (36) Recommendations regarding certain powers and duties of DOE. (37) Certain
training and professional development requirements. (38) Certain teacher leave requirements. (39)
Ineligibility for state funds for adopting residence requirements. (40) Certain compensation included in
HB 1002 1 computing teacher's retirement benefit. (41) Penalty for failing to comply with working schedule
requirements. (42) Discretionary modification of graduation plan. (43) Required course on safety education.
(44) Compilation of leaflets regarding hygiene, sanitary science, and disease prevention. (45) Making a
violation regarding teaching certain disease information an infraction. (46) Certain elective courses and
teachings. (47) Voluntary summer school program and joint summer school program requirements. (48)
Technology preparation curriculum. (49) Community or volunteer service programs. (50) State Certificate
of Biliteracy. (51) Nonsession school activities. (52) Requirements regarding Indiana Academic Standards.
(53) Strategic and Continuous Improvement and Achievement plans. (54) Cultural competency components
of a school plan. (55) Student Educational Achievement Grants. (56) Remediation Grant Program. (57)
Postsecondary workforce training program remediation reduction. (58) Requirement to provide an enrollment
form for the Twenty-first Century Scholars Program to certain students. (59) Plan requirements for high
ability students. (60) Governor's Scholars Academy. (61) Seminary Township School Fund. (62) Dual Credit
Teacher Stipend Matching Grant Fund. (63) Student Enrichment Grants.
The bill also 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. This bill
amends the time period by which a governing body must organize by electing officers. The bill establishes
information that must be included in a consolidated audit by an organizer. It provides adult high schools are
excluded from all cohort based graduation rate calculations except to the extent required under federal law.
It amends the termination and notice requirements with regard to terminating a transportation program. This
bill relocates and amends a provision regarding trauma informed classroom instruction curriculum in teacher
preparation programs. The bill provides that the Secretary of Education (instead of the Governor) shall
appoint the Director of Special Education. It amends required frequency of child abuse and neglect training.
It also makes technical and conforming changes.
Effective Date: July 1, 2025.
Explanation of State Expenditures: 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.]
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.
HB 1002 2 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: Department of Education.
Fiscal Analyst: Kelan Fong, 317-232-9592; Austin Spears, 317-234-9454
HB 1002 3