LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7340 NOTE PREPARED: Jan 31, 2025
BILL NUMBER: HB 1002 BILL AMENDED: Jan 30, 2025
SUBJECT: Various Education Matters.
FIRST AUTHOR: Rep. Behning BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
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. (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, course, and annual performance target
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) Nonsession school
activities. (51) Requirements regarding Indiana Academic Standards. (52) Strategic and Continuous
Improvement and Achievement Plans. (53) Cultural competency components of a school plan. (54) Student
Educational Achievement Grants. (55) Remediation Grant Program. (56) Postsecondary workforce training
program remediation reduction. (57) Requirement to provide an enrollment form for the Twenty-First
Century Scholars Program to certain students. (58) Governor's Scholars Academy. (59) Seminary Township
School Fund. (60) Dual Credit Teacher Stipend Matching Grant Fund. (61) Student Enrichment Grants. (62)
Required submission of economic interest information at the time a charter school organizer submits a
proposal for a charter school.
This bill also merges and amends provisions regarding fund distribution upon the termination of a charter
and the cessation of a charter school. The bill amends the age eligibility for a member of a governing body.
It amends the time period by which a governing body must organize by electing officers. This bill establishes
information that must be included in a consolidated audit by an organizer. The bill 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 amends certain financial statement filing requirements regarding school trusts to pool
assets for insurance coverage. The bill 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.]
(Revised) Department of Insurance (DOI): Current statute requires schools who pool resources together to
reduce insurance costs to create a trust. This trust is then required to submit a financial statement to the
Department of Insurance (DOI). Provisions in the bill require this financial statement to be audited annually.
If the financial statement under existing law is not currently audited annually, this represents a workload
and/or expenditure increase for DOI. [LSA requested additional information from DOI and will update this
provision upon receipt of the requested information.]
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
HB 1002 2 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.
(Revised) Department of Insurance: It is unknown if the bill’s provisions would impact fee revenue the DOI
currently collects from school insurance trusts. [LSA requested additional information from DOI and will
update this provision upon receipt of the requested information.]
Additional Information - Department of Insurance: DOI currently charges school insurance trusts an annual
$250 internal audit fee. DOI also currently charges the trusts an annual $100 filing fee when the trusts submit
their financial statement. Revenue from these fees are deposited into the nonreverting Department of
Insurance Fund.
Explanation of Local Expenditures: (Revised) Transfer Students: The bill allows parents to request a
transfer for their child to a school corporation outside of the student’s legal settlement area for any reason.
This will increase transferor school corporation transfer tuition expenditures.
(Revised) Department of Insurance: Trusts formed by schools for the purpose of reducing insurance costs
are currently required to submit an annual financial statement to DOI. It is not clear if the bill’s provisions
allow DOI to establish less burdensome reporting requirements for trusts. Dependent on the extent this is
allowed, workloads may decrease for public schools who are required to submit this financial statement. DOI
also currently charges the trusts certain annual fees and it is unknown if the bill’s provisions would impact
the fees charged to schools. [LSA requested additional information from DOI and will update this provision
upon receipt of the requested information.]
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.
(Revised) Transfer Tuition: Provisions in the bill are expected to increase the number of students who
transfer between school corporations. This will increase transfer tuition revenue received by transferee school
corporations. The provision will also shift tuition support revenue from the transferor school corporation,
to the transferee school corporation.
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.]
HB 1002 3 State Agencies Affected: Department of Education; State Board of Education; State Health Commissioner;
State Budget Agency; Department of Workforce Development; Department of Insurance; 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 4