LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7340 NOTE PREPARED: Apr 3, 2025
BILL NUMBER: HB 1002 BILL AMENDED: Apr 3, 2025
SUBJECT: Various Education Matters.
FIRST AUTHOR: Rep. Behning BILL STATUS: CR Adopted - 2
nd
House
FIRST SPONSOR: Sen. Raatz
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 (state board). (5)
Credit for retaking a virtual course during certain time periods. (6) Children's social, emotional, and
behavioral health plans. (7) Family friendly school designations. (8) The Indiana Civic Education
Commission. (9) Discretionary directives to the department. (10) The program for the advancement of math
and science. (11) Access to telecommunication services. (12) Elementary school counselors, social workers,
and school psychologists program and fund. (13) Grants for mental health counselor licenses for school
counselors. (14) the Arts Education Program. (15) The Geothermal Conversion Revolving Fund. (16) Clause
requirements for certain charter school organizer documents. (17) Required acknowledgment by a current
authorizer regarding a proposal by an existing charter school to another authorizer. (18) Requirements
regarding a governing body of school corporation (governing body) providing a noncharter school. (19)
Charter requirements, including minimum year, instruction, course, and annual performance target
requirements. (20) Certain notice requirements from an authorizer to an organizer that is not in compliance.
(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) Developing and reviewing evidence based plans with parents for improving
student behavior and discipline. (26) Township trustees and the sale of schoolhouses. (27) School health
advisory councils and adoption of a school corporation policy on child nutrition and physical activity. (28)
Certain agreement requirements regarding joint programs. (29) Certain requirements regarding the transfer
of a student to another school. (30) Freeway school corporation and Freeway School Program. (31) Policies,
programs, and reports regarding criminal organization activity. (32) Transportation program discretion. (33)
Recommendations regarding certain powers and duties of the department. (34) Culturally responsive
methods. (35) Certain training and professional development requirements. (36) Certain teacher leave
requirements. (37) Ineligibility for state funds for adopting residence requirements. (38) Certain
compensation included in computing teacher's retirement benefit. (39) Penalty for failing to comply with
working schedule requirements. (40) Discretionary modification of graduation plan. (41) Required course
HB 1002 1 on safety education. (42) Compilation of leaflets regarding hygiene, sanitary science, and disease prevention.
(43) Making a violation regarding teaching certain disease information an infraction. (44) Certain elective
courses and teachings. (45) Voluntary summer school program and joint summer school program
requirements. (46) Technology preparation curriculum. (47) Community or volunteer service programs. (48)
Nonsession school activities. (49) Requirements regarding Indiana academic standards. (50) Strategic and
continuous improvement and achievement plans. (51) Cultural competency. (52) Student Educational
Achievement Grants. (53) Remediation Grant Program. (54) Postsecondary workforce training program
remediation reduction. (55) Requirement to provide an enrollment form for the Twenty-first Century Scholars
Program to certain students. (56) Governor's Scholars Academy. (57) Seminary township school fund. (58)
Dual Credit Teacher Stipend Matching Grant Fund. (59) 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. The bill also
permits the governing body of a school corporation or an organizer of a charter school to assess and collect
a reasonable fee for certain supplies and materials. 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 also provides adult high schools are excluded from all cohort based
graduation rate calculations except to the extent required under federal law. This bill also amends the
termination and notice requirements with regard to terminating a transportation program. The bill relocates
and amends a provision regarding classroom instruction curriculum in teacher preparation programs. It also
provides that the Secretary of Education (instead of the Governor) shall appoint the Director of Special
Education. It also amends required frequency of child abuse and neglect training. This bill amends certain
financial statement filing requirements regarding school trusts to pool assets for insurance coverage. The bill
provides that, if Vigo County transfers or gifts any unencumbered funds to a school corporation, the county
executive may establish a local board to have oversight and manage the use of the funds. It provides that the
expenses of the local board shall be paid by the county. It also provides that certain governing bodies are
exempt from compliance with the requirements of the dollar law for certain school buildings if the school
buildings are sold to a municipality.
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.]
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.]
HB 1002 2 (Revised) Dollar Law Exemptions: Current law requires certain school buildings, including closed or
underutilized schools, to be offered to State Educational Institutions (SEIs) and charter schools for $1.
Provisions in this bill exempt the School City of Hammond’s Gavit High School and Griffith Public Schools’
Ready Elementary School from this statute only in FY 2026 and FY 2027 and only if the building is sold to
a municipality. Both buildings ceased instructional operations in FY 2021.
If an SEI was interested but unable to purchase or lease either building for $1 due to the bill’s provisions,
expenditures for an SEI could increase if it is unable to purchase or lease another covered school building
for $1. [SEIs receive state funding through General Fund appropriations.]
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.
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: 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.
Automated External Defibrillator (AED) Requirement: Public schools may incur costs to purchase and
ensure the proper maintenance of one or more AEDs, depending on the number of AEDs already owned by
the school and the number needed to meet the requirements in this bill.
(Revised) Dollar Law Exemptions: If a charter school was interested but unable to purchase or lease Gavit
High School or Ready Elementary School for $1, expenditures for the charter school could increase if it is
unable to purchase or lease another covered school building for $1. [See Explanation of State Expenditures.]
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.]
HB 1002 3 Vigo County: To the extent that Vigo County transfers or gifts unencumbered funds to Vigo County School
Corporation in the future and the local board that may be created under the bill has expenses in fulfilling its
duties, the county must pay those expenses.
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: (Revised) Dollar Law Exemptions: The School City of Hammond and
Griffith Public Schools may experience a revenue increase if they are able to sell or lease Gavit High School
or Ready Elementary School for more than $1 as allowed under the bill. [See Explanation of State
Expenditures.]
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.
School Supplies: Under current law, public schools cannot charge students for curricular materials. The bill
provides that schools can charge reasonable fees for supplementary, non-curricular materials that supplement
instruction.
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.]
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; Vigo County; Vigo County School
Corporation; School City of Hammond and Griffith Public Schools; public schools; trial courts; local law
enforcement agencies.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual.
Information Sources: Department of Education; LSA Education Database.
Fiscal Analyst: Austin Spears, 317-234-9454; Kelan Fong, 317-232-9592
HB 1002 4 HB 1002 5