Introduced Version
HOUSE BILL No. 1501
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-20.
Synopsis: Facilities and transportation pilot programs. Establishes a
three school year: (1) centralized school facilities pilot program; and
(2) student transportation pilot program. Requires school corporations
that meet certain criteria to participate in the centralized school
facilities pilot program and student transportation pilot program, as
applicable. Allows: (1) not more than three school corporations, as
selected by the department of education (department), to voluntarily
participate in the centralized school facilities pilot program; and (2) not
more than three school corporations, as selected by the department, to
voluntarily participate in the student transportation pilot program.
Establishes a: (1) local centralized school facilities board; and (2) local
student transportation board; for each participating school corporation
and grants the local boards certain powers and duties. Provides that,
after the three year pilot program period, each local centralized school
facilities board and local student transportation board maintain the
powers and duties of the board and may impose property tax levies.
Requires the department of local government finance, in consultation
with the department, to prepare recommendations regarding legislation
and procedures to ensure the permanent transition of powers and duties
to the centralized school facilities boards and local student
transportation boards, as applicable.
Effective: July 1, 2025.
Behning
January 21, 2025, read first time and referred to Committee on Education.
2025 IN 1501—LS 7659/DI 110 Introduced
First Regular Session of the 124th General Assembly (2025)
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HOUSE BILL No. 1501
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 20-20-51 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 51. Centralized School Facilities Pilot Program and
5 Local Boards
6 Sec. 1. As used in this chapter, "local board" refers to a local
7 centralized school facilities board established under section 5 of
8 this chapter.
9 Sec. 2. As used in this chapter, "pilot program" means the
10 centralized school facilities pilot program established by section 3
11 of this chapter.
12 Sec. 3. (a) The centralized school facilities pilot program is
13 established to provide innovative approaches concerning the use,
14 operation, and management of school facilities to promote:
15 (1) enhanced learning environments;
16 (2) unique learning opportunities; and
17 (3) improved student academic and health outcomes;
2025 IN 1501—LS 7659/DI 110 2
1 in accordance with the plan submitted to the general assembly by
2 the secretary of education under IC 20-19-3-32.
3 (b) A school corporation in which more than fifty percent (50%)
4 of the students who have legal settlement in the school corporation
5 were, on the 2024 fall ADM count date under IC 20-43-4-3,
6 enrolled in:
7 (1) a school that is not operated by the school corporation; or
8 (2) an innovation network school established under
9 IC 20-25.7-4;
10 shall participate in the pilot program.
11 (c) The pilot program is established for a three (3) year period
12 consisting of the 2026-2027, 2027-2028, and 2028-2029 school
13 years.
14 Sec. 4. (a) In addition to a school corporation that is required to
15 participate in the pilot program under section 3 of this chapter, a
16 school corporation may apply to the department to participate in
17 the pilot program.
18 (b) The department:
19 (1) may approve not more than a total of three (3) school
20 corporations under this section to participate in the pilot
21 program; and
22 (2) shall establish the application process and criteria to
23 participate in the pilot program under this section.
24 Sec. 5. (a) Subject to subsection (b), not later than October 31,
25 2025, a local centralized school facilities board is established for
26 each participating school corporation.
27 (b) Each local board must:
28 (1) be independent from the school corporation and any
29 school; and
30 (2) consist of the following members:
31 (A) Two (2) members appointed by the:
32 (i) executive of a city; or
33 (ii) mayor of the town;
34 that represents the largest population of students within
35 the geographic boundaries of the participating school
36 corporation.
37 (B) One (1) member appointed by the legislative body (as
38 defined in IC 36-1-2-9) of a consolidated city or the
39 municipality that represents the largest population of
40 students within the geographic boundaries of the
41 participating school corporation.
42 (C) One (1) member appointed by the speaker of the house
2025 IN 1501—LS 7659/DI 110 3
1 of representatives.
2 (D) One (1) member appointed by the president pro
3 tempore of the senate.
4 (c) An employee or member of the governing body of a
5 participating school corporation may not be appointed to a local
6 board under subsection (a).
7 (d) Each local board must include members who collectively
8 have expertise in the following:
9 (1) Facility management, construction, or real estate.
10 (2) Public finance or public debt issuance.
11 (3) Demographic analysis and urban planning.
12 (4) Organizational effectiveness, operations management, and
13 implementing best practices.
14 (5) Government contracts.
15 (6) Budget development and oversight.
16 Sec. 6. Notwithstanding any other state law or rule, each local
17 board shall provide oversight and management of school facilities
18 with a focus on best use and upkeep of assets funded by taxpayers.
19 Sec. 7. Each local board shall create a pilot program
20 implementation plan that includes measures to:
21 (1) determine term lengths and member replacement
22 processes for the local board;
23 (2) conduct school facility assessments for all applicable
24 school facilities;
25 (3) implement a process to approve or deny any levy requests
26 related to capital expenditures;
27 (4) implement a process to receive and distribute tax revenue,
28 as needed;
29 (5) improve the health and safety of students and teachers;
30 (6) allow for additional flexibility and creativity in terms of
31 what is considered a school facility, including considerations
32 surrounding colocation with other schools, governmental
33 entities, or community organizations;
34 (7) enter into revenue sharing agreements and asset use
35 agreements for all school facilities within the geographic
36 boundaries of the applicable school corporation for the three
37 (3) year period of the pilot program;
38 (8) address any existing excess capacity in school facilities;
39 (9) inspire opportunities for partnership with other
40 governmental entities or local nonprofit organizations to
41 transform school facilities into broader community assets for
42 residents;
2025 IN 1501—LS 7659/DI 110 4
1 (10) implement best practices in facilities management and
2 operations;
3 (11) track qualitative and quantitative data to gauge the
4 success of the pilot program;
5 (12) collect and report data in a manner prescribed by the
6 department regarding school facilities included in the pilot
7 program;
8 (13) manage any school facility related debt for the duration
9 of the pilot program;
10 (14) implement a maintenance plan and contract with
11 vendors, as needed, for the duration of the three (3) year pilot
12 program;
13 (15) permanently transfer ownership of assets to the local
14 board at the conclusion of the three (3) year period of the pilot
15 program; and
16 (16) develop and implement a long term asset management
17 and sustainability plan that includes establishing the local
18 board as a taxing unit.
19 Sec. 8. Notwithstanding any other state law or rule, beginning
20 with the 2026-2027 school year, each local board established under
21 section 5 of this chapter:
22 (1) shall exercise the full powers and duties provided under
23 this chapter; and
24 (2) has the authority to approve or deny any property tax levy
25 approved by the governing body of the applicable school
26 corporation.
27 Sec. 9. Each local board may contract with outside entities to
28 provide capacity to create, implement, or create and implement the
29 implementation plan created under section 7 of this chapter.
30 Sec. 10. (a) Notwithstanding any other state law or rule,
31 beginning with the 2029-2030 school year, the following occur:
32 (1) A local board maintains all the duties and powers under
33 this chapter.
34 (2) Participating school corporations must transfer all assets
35 and related funding regarding school facilities to the
36 applicable local board.
37 (3) A local board may impose property tax levies.
38 (b) Not later than July 1, 2028, the department of local
39 government finance, in consultation with the department, shall do
40 the following:
41 (1) Prepare a report that includes recommendations
42 regarding legislation and procedures to transfer the duties
2025 IN 1501—LS 7659/DI 110 5
1 and powers of the school corporation to the applicable local
2 board as provided under this chapter.
3 (2) Submit the report to the legislative council in an electronic
4 format under IC 5-14-6.
5 Sec. 11. Not later than July 1, 2029, the department shall do the
6 following:
7 (1) Prepare a plan to adopt best practices from the pilot
8 program statewide.
9 (2) Submit the plan to the legislative council in an electronic
10 format under IC 5-14-6.
11 Sec. 12. This chapter shall be liberally construed to effect the
12 purposes of this chapter.
13 Sec. 13. Except as otherwise specifically provided by law, to the
14 extent the provisions of this chapter are inconsistent with the
15 provisions of any other general, special, or local law, the provisions
16 of this chapter are controlling, and compliance with this chapter
17 shall be treated as compliance with the conflicting law.
18 SECTION 2. IC 20-20-52 IS ADDED TO THE INDIANA CODE
19 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2025]:
21 Chapter 52. Student Transportation Pilot Program
22 Sec. 1. As used in this chapter, "local board" refers to a local
23 student transportation board established under section 5 of this
24 chapter.
25 Sec. 2. As used in this chapter, "pilot program" refers to the
26 student transportation pilot program established by section 3 of
27 this chapter.
28 Sec. 3. (a) The student transportation pilot program is
29 established to provide transportation to all students attending:
30 (1) public schools, including charter schools; and
31 (2) nonpublic schools with at least one (1) employee;
32 within the geographic boundaries of the school corporation.
33 (b) A school corporation in which more than fifty percent (50%)
34 of the students who have legal settlement in the school corporation
35 were, on the 2024 fall ADM count date under IC 20-43-4-3,
36 enrolled in:
37 (1) a school that is not operated by the school corporation; or
38 (2) an innovation network school established under
39 IC 20-25.7-4;
40 shall participate in the pilot program.
41 (c) The pilot program is established for a three (3) year period
42 consisting of the 2026-2027, 2027-2028, and 2028-2029 school
2025 IN 1501—LS 7659/DI 110 6
1 years.
2 Sec. 4. (a) In addition to a school corporation that is required to
3 participate in the pilot program under section 3 of this chapter, a
4 school corporation may apply to the department to participate in
5 the pilot program.
6 (b) The department:
7 (1) may approve not more than a total of three (3) school
8 corporations under this section to participate in the pilot
9 program; and
10 (2) shall establish the application process and criteria to
11 participate in the pilot program under this section.
12 Sec. 5. (a) Subject to subsection (b), not later than October 31,
13 2025, a local student transportation board is established for each
14 participating school corporation.
15 (b) Each local board must:
16 (1) be independent from the school corporation and any
17 school; and
18 (2) consist of the following members:
19 (A) Two (2) members appointed by the:
20 (i) executive of a city; or
21 (ii) mayor of the town;
22 that represents the largest population of students within
23 the geographic boundaries of the participating school
24 corporation.
25 (B) One (1) member appointed by the legislative body (as
26 defined in IC 36-1-2-9) of a consolidated city or the
27 municipality that represents the largest population of
28 students within the geographic boundaries of the
29 participating school corporation.
30 (C) One (1) member appointed by the speaker of the house
31 of representatives.
32 (D) One (1) member appointed by the president pro
33 tempore of the senate.
34 (c) An employee or member of the governing body of a
35 participating school corporation may not be appointed to a local
36 board under subsection (a).
37 (d) Each local board must include members who collectively
38 have expertise in the following:
39 (1) Transportation logistics, particularly involving movement
40 of passengers.
41 (2) Finance and business.
42 (3) Organizational effectiveness, operations management, and
2025 IN 1501—LS 7659/DI 110 7
1 implementing best practices.
2 (4) Government contracts.
3 (5) Budget development and oversight.
4 Sec. 6. Notwithstanding any other state law or rule, each local
5 board shall be responsible for the oversight and management of the
6 transportation of students described in section 3 of this chapter in
7 a safe and efficient manner in accordance with the plan submitted
8 to the general assembly by the secretary of education under
9 IC 20-19-3-33.
10 Sec. 7. Each local board shall create a pilot program
11 implementation plan that includes measures to:
12 (1) determine term lengths and member replacement
13 processes for the local board;
14 (2) allow for additional flexibility and creativity to
15 accommodate student needs throughout the school day,
16 including transportation:
17 (A) to and from school;
18 (B) for before and after school opportunities;
19 (C) for work based learning experiences;
20 (D) for extracurricular activities; and
21 (E) for specialized educational opportunities;
22 (3) improve safety and efficiency for students;
23 (4) increase collaboration between schools, governmental
24 entities, and community organizations;
25 (5) track qualitative and quantitative data to gauge the
26 success of the pilot program;
27 (6) collect and report data in a manner prescribed by the
28 department regarding the pilot program;
29 (7) provide uninterrupted transportation services for
30 homeless students or students in foster care as provided by
31 the McKinney-Vento Homeless Education Assistance
32 Improvements Act (42 U.S.C. 11431 et seq.);
33 (8) inspire opportunities for public-private partnerships or
34 partnerships with other governmental entities or local
35 nonprofit organizations;
36 (9) enter into revenue sharing agreements and asset use
37 agreements with participating schools for the duration of the
38 three (3) year period of the pilot program;
39 (10) manage any transportation related debt for the three (3)
40 year period of the pilot program;
41 (11) implement purchasing and maintenance plans and
42 contracts with vendors, as needed, for the three (3) year
2025 IN 1501—LS 7659/DI 110 8
1 period of the pilot program;
2 (12) permanently transfer ownership of assets to the local
3 board at the conclusion of the pilot program; and
4 (13) develop and implement a long term asset management
5 and sustainability plan which includes establishing the local
6 board as a taxing unit.
7 Sec. 8. Notwithstanding any other state law or rule, beginning
8 with the 2026-2027 school year, each local board established under
9 section 5 of this chapter:
10 (1) shall exercise the full powers and duties provided under
11 this chapter, including providing transportation services to
12 students described in section 3 of this chapter; and
13 (2) has the authority to approve or deny any property tax levy
14 approved by the governing body of the applicable school
15 corporation.
16 Sec. 9. Each local board may contract with outside entities to
17 provide capacity to create, implement, or create and implement the
18 implementation plan created under section 7 of this chapter.
19 Sec. 10. (a) Notwithstanding any other state law or rule,
20 beginning with the 2029-2030 school year, the following occur:
21 (1) A local board maintains all the duties and powers under
22 this chapter.
23 (2) Participating school corporations must transfer all assets
24 and related funding regarding school transportation to the
25 applicable local board.
26 (3) A local board may impose property tax levies.
27 (b) Not later than July 1, 2028, the department of local
28 government finance, in consultation with the department, shall do
29 the following:
30 (1) Prepare a report that includes recommendations
31 regarding legislation and procedures to transfer the duties
32 and powers of the school corporation to the applicable local
33 board as provided under this chapter.
34 (2) Submit the report to the legislative council in an electronic
35 format under IC 5-14-6.
36 Sec. 11. Not later than July 1, 2029, the department shall do the
37 following:
38 (1) Prepare a plan to adopt best practices from the pilot
39 program statewide.
40 (2) Submit the plan to the legislative council in an electronic
41 format under IC 5-14-6.
42 Sec. 12. The department shall waive any state law or rule
2025 IN 1501—LS 7659/DI 110 9
1 requirement necessary to exempt participating school corporations
2 from requirements for purposes of participation in the pilot
3 program under this chapter.
4 Sec. 13. This chapter shall be liberally construed to effect the
5 purposes of this chapter.
6 Sec. 14. Except as otherwise specifically provided by law, to the
7 extent the provisions of this chapter are inconsistent with the
8 provisions of any other general, special, or local law, the provisions
9 of this chapter are controlling, and compliance with this chapter
10 shall be treated as compliance with the conflicting law.
2025 IN 1501—LS 7659/DI 110