Introduced Version SENATE BILL No. 146 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 5-10-8; IC 20-20-50; IC 20-26; IC 20-28; IC 20-29-6-16; IC 20-38-4; IC 20-43-10-3.5; IC 34-30-2.1-287.3. Synopsis: Teacher compensation. Requires a school corporation or charter school to provide coverage of health care services for active and retired employees of the school corporation or charter school under a state employee health plan if the state employee health plan is less expensive than an alternative plan offered by the school. (Under current law, a school corporation or charter school may elect to provide coverage under a state employee health plan.). Creates the Indiana teacher recruitment program and fund. Provides 20 days of paid leave for a full-time teacher employed by a school corporation and 10 days of paid leave for a part-time teacher employed by a school corporation upon: (1) the birth of the teacher's child; (2) the birth of a child to the teacher's spouse; (3) the placement of a child for adoption with the teacher; or (4) the stillbirth of the teacher's child. Removes a prohibition on ranking teacher preparation programs. Beginning June 30, 2025: (1) increases the minimum salary for a teacher employed by a school corporation to $45,000 (current law requires $40,000); and (2) requires a school corporation to expend an amount for teacher compensation that is not less than 65% of state tuition support (current law requires 62%). Changes the name of the "teacher appreciation grant" to the "teacher incentivization grant". Amends the requirements regarding the teacher incentivization grant. Joins the interstate teacher mobility compact. Effective: June 29, 2025; July 1, 2025. Rogers January 13, 2025, read first time and referred to Committee on Education and Career Development. 2025 IN 146—LS 7471/DI 143 Introduced First Regular Session of the 124th General Assembly (2025) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2024 Regular Session of the General Assembly. SENATE BILL No. 146 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 5-10-8-2.2, AS AMENDED BY P.L.111-2019, 2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2025]: Sec. 2.2. (a) As used in this section, "dependent" 4 means a natural child, stepchild, or adopted child of a public safety 5 employee who: 6 (1) is less than eighteen (18) years of age; 7 (2) is at least eighteen (18) years of age and has a physical or 8 mental disability (using disability guidelines established by the 9 Social Security Administration); or 10 (3) is at least eighteen (18) and less than twenty-three (23) years 11 of age and is enrolled in and regularly attending a secondary 12 school or is a full-time student at an accredited college or 13 university. 14 (b) As used in this section, "public safety employee" means a 15 full-time firefighter, police officer, county police officer, or sheriff. 16 (c) This section applies only to local unit public employers and their 17 public safety employees. 2025 IN 146—LS 7471/DI 143 2 1 (d) A local unit public employer may provide programs of group 2 health insurance for its active and retired public safety employees 3 through any one (1) of the following methods: 4 (1) By purchasing policies of group insurance. 5 (2) By establishing self-insurance programs. 6 (3) If the local unit public employer is a school corporation or 7 charter school, by electing to provide providing the coverage 8 through a state employee health plan under section 6.7 of this 9 chapter. 10 A local unit public employer may provide programs of group insurance 11 other than group health insurance for the local unit public employer's 12 active and retired public safety employees by purchasing policies of 13 group insurance and by establishing self-insurance programs. However, 14 the establishment of a self-insurance program is subject to the approval 15 of the unit's fiscal body. 16 (e) A local unit public employer may pay a part of the cost of group 17 insurance for its active and retired public safety employees. However, 18 a local unit public employer that provides group life insurance for its 19 active and retired public safety employees shall pay a part of the cost 20 of that insurance. 21 (f) A local unit public employer may not cancel an insurance 22 contract under this section during the policy term of the contract. 23 (g) After June 30, 1989, a local unit public employer that provides 24 a group health insurance program for its active public safety employees 25 shall also provide a group health insurance program to the following 26 persons: 27 (1) Retired public safety employees. 28 (2) Public safety employees who are receiving disability benefits 29 under IC 36-8-6, IC 36-8-7, IC 36-8-7.5, IC 36-8-8, or IC 36-8-10. 30 (3) Surviving spouses and dependents of public safety employees 31 who die while in active service or after retirement. 32 (h) A public safety employee who is retired or has a disability and 33 is eligible for group health insurance coverage under subsection (g)(1) 34 or (g)(2): 35 (1) may elect to have the person's spouse, dependents, or spouse 36 and dependents covered under the group health insurance 37 program at the time the person retires or becomes disabled; 38 (2) must file a written request for insurance coverage with the 39 employer within ninety (90) days after the person retires or begins 40 receiving disability benefits; and 41 (3) must pay an amount equal to the total of the employer's and 42 the employee's premiums for the group health insurance for an 2025 IN 146—LS 7471/DI 143 3 1 active public safety employee (however, the employer may elect 2 to pay any part of the person's premiums). 3 (i) Except as provided in IC 5-10-18, IC 36-8-6-9.7(f), 4 IC 36-8-6-10.1(h), IC 36-8-7-12.3(g), IC 36-8-7-12.4(j), 5 IC 36-8-7.5-13.7(h), IC 36-8-7.5-14.1(i), IC 36-8-8-13.9(d), 6 IC 36-8-8-14.1(h), and IC 36-8-10-16.5 for a surviving spouse or 7 dependent of a public safety employee who dies in the line of duty, a 8 surviving spouse or dependent who is eligible for group health 9 insurance under subsection (g)(3): 10 (1) may elect to continue coverage under the group health 11 insurance program after the death of the public safety employee; 12 (2) must file a written request for insurance coverage with the 13 employer within ninety (90) days after the death of the public 14 safety employee; and 15 (3) must pay the amount that the public safety employee would 16 have been required to pay under this section for coverage selected 17 by the surviving spouse or dependent (however, the employer may 18 elect to pay any part of the surviving spouse's or dependents' 19 premiums). 20 (j) The eligibility for group health insurance under this section for 21 a public safety employee who is retired or has a disability ends on the 22 earlier of the following: 23 (1) When the public safety employee becomes eligible for 24 Medicare coverage as prescribed by 42 U.S.C. 1395 et seq. 25 (2) When the employer terminates the health insurance program 26 for active public safety employees. 27 (k) A surviving spouse's eligibility for group health insurance under 28 this section ends on the earliest of the following: 29 (1) When the surviving spouse becomes eligible for Medicare 30 coverage as prescribed by 42 U.S.C. 1395 et seq. 31 (2) When the unit providing the insurance terminates the health 32 insurance program for active public safety employees. 33 (3) The date of the surviving spouse's remarriage. 34 (4) When health insurance becomes available to the surviving 35 spouse through employment. 36 (l) A dependent's eligibility for group health insurance under this 37 section ends on the earliest of the following: 38 (1) When the dependent becomes eligible for Medicare coverage 39 as prescribed by 42 U.S.C. 1395 et seq. 40 (2) When the unit providing the insurance terminates the health 41 insurance program for active public safety employees. 42 (3) When the dependent no longer meets the criteria set forth in 2025 IN 146—LS 7471/DI 143 4 1 subsection (a). 2 (4) When health insurance becomes available to the dependent 3 through employment. 4 (m) A public safety employee who is on leave without pay is entitled 5 to participate for ninety (90) days in any group health insurance 6 program maintained by the local unit public employer for active public 7 safety employees if the public safety employee pays an amount equal 8 to the total of the employer's and the employee's premiums for the 9 insurance. However, the employer may pay all or part of the employer's 10 premium for the insurance. 11 (n) A local unit public employer may provide group health 12 insurance for retired public safety employees or their spouses not 13 covered by subsections (g) through (l) and may provide group health 14 insurance that contains provisions more favorable to retired public 15 safety employees and their spouses than required by subsections (g) 16 through (l). A local unit public employer may provide group health 17 insurance to a public safety employee who is on leave without pay for 18 a longer period than required by subsection (m), and may continue to 19 pay all or a part of the employer's premium for the insurance while the 20 employee is on leave without pay. 21 SECTION 2. IC 5-10-8-2.6, AS AMENDED BY P.L.91-2014, 22 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 23 JULY 1, 2025]: Sec. 2.6. (a) This section applies only to local unit 24 public employers and their employees. This section does not apply to 25 public safety employees, surviving spouses, and dependents covered by 26 section 2.2 of this chapter. 27 (b) A public employer may provide programs of group insurance for 28 its employees and retired employees. The public employer may, 29 however, exclude part-time employees and persons who provide 30 services to the unit under contract from any group insurance coverage 31 that the public employer provides to the employer's full-time 32 employees. A public employer may provide programs of group health 33 insurance under this section through any one (1) of the following 34 methods: 35 (1) By purchasing policies of group insurance. 36 (2) By establishing self-insurance programs. 37 (3) If the local unit public employer is a school corporation or 38 charter school, by electing to provide providing the coverage 39 through a state employee health plan under section 6.7 of this 40 chapter. 41 A public employer may provide programs of group insurance other 42 than group health insurance under this section by purchasing policies 2025 IN 146—LS 7471/DI 143 5 1 of group insurance and by establishing self-insurance programs. 2 However, the establishment of a self-insurance program is subject to 3 the approval of the unit's fiscal body. 4 (c) A public employer may pay a part of the cost of group insurance, 5 but shall pay a part of the cost of group life insurance for local 6 employees. A public employer may pay, as supplemental wages, an 7 amount equal to the deductible portion of group health insurance as 8 long as payment of the supplemental wages will not result in the 9 payment of the total cost of the insurance by the public employer. 10 (d) An insurance contract for local employees under this section 11 may not be canceled by the public employer during the policy term of 12 the contract. 13 (e) After June 30, 1986, a public employer shall provide a group 14 health insurance program under subsection (g) to each retired 15 employee: 16 (1) whose retirement date is: 17 (A) after May 31, 1986, for a retired employee who was a 18 teacher (as defined in IC 20-18-2-22) for a school corporation; 19 or 20 (B) after June 30, 1986, for a retired employee not covered by 21 clause (A); 22 (2) who will have reached fifty-five (55) years of age on or before 23 the employee's retirement date but who will not be eligible on that 24 date for Medicare coverage as prescribed by 42 U.S.C. 1395 et 25 seq.; 26 (3) who will have completed twenty (20) years of creditable 27 employment with a public employer on or before the employee's 28 retirement date, ten (10) years of which must have been 29 completed immediately preceding the retirement date; and 30 (4) who will have completed at least fifteen (15) years of 31 participation in the retirement plan of which the employee is a 32 member on or before the employee's retirement date. 33 (f) A group health insurance program required by subsection (e) 34 must be equal in coverage to that offered active employees and must 35 permit the retired employee to participate if the retired employee pays 36 an amount equal to the total of the employer's and the employee's 37 premiums for the group health insurance for an active employee and if 38 the employee, within ninety (90) days after the employee's retirement 39 date, files a written request with the employer for insurance coverage. 40 However, the employer may elect to pay any part of the retired 41 employee's premiums. 42 (g) A retired employee's eligibility to continue insurance under 2025 IN 146—LS 7471/DI 143 6 1 subsection (e) ends when the employee becomes eligible for Medicare 2 coverage as prescribed by 42 U.S.C. 1395 et seq., or when the 3 employer terminates the health insurance program. A retired employee 4 who is eligible for insurance coverage under subsection (e) may elect 5 to have the employee's spouse covered under the health insurance 6 program at the time the employee retires. If a retired employee's spouse 7 pays the amount the retired employee would have been required to pay 8 for coverage selected by the spouse, the spouse's subsequent eligibility 9 to continue insurance under this section is not affected by the death of 10 the retired employee. The surviving spouse's eligibility ends on the 11 earliest of the following: 12 (1) When the spouse becomes eligible for Medicare coverage as 13 prescribed by 42 U.S.C. 1395 et seq. 14 (2) When the employer terminates the health insurance program. 15 (3) Two (2) years after the date of the employee's death. 16 (4) The date of the spouse's remarriage. 17 (h) This subsection does not apply to an employee who is entitled 18 to group insurance coverage under IC 20-28-10-2(b). An employee 19 who is on leave without pay is entitled to participate for ninety (90) 20 days in any group health insurance program maintained by the public 21 employer for active employees if the employee pays an amount equal 22 to the total of the employer's and the employee's premiums for the 23 insurance. However, the employer may pay all or part of the employer's 24 premium for the insurance. 25 (i) A public employer may provide group health insurance for 26 retired employees or their spouses not covered by subsections (e) 27 through (g) and may provide group health insurance that contains 28 provisions more favorable to retired employees and their spouses than 29 required by subsections (e) through (g). A public employer may 30 provide group health insurance to an employee who is on leave without 31 pay for a longer period than required by subsection (h), and may 32 continue to pay all or a part of the employer's premium for the 33 insurance while the employee is on leave without pay. 34 SECTION 3. IC 5-10-8-6.7, AS AMENDED BY P.L.6-2012, 35 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 36 JULY 1, 2025]: Sec. 6.7. (a) As used in this section, "state employee 37 health plan" means a: 38 (1) self-insurance program established under section 7(b) of this 39 chapter; or 40 (2) contract with a prepaid health care delivery plan entered into 41 under section 7(c) of this chapter; 42 to provide group health coverage for state employees. 2025 IN 146—LS 7471/DI 143 7 1 (b) The state personnel department shall allow a school corporation 2 or charter school to elect to provide coverage of health care services for 3 active and retired employees of the school corporation or charter 4 school under any state employee health plan. If A school corporation 5 or charter school elects to provide that provides coverage of health 6 care services for active and retired employees of the school corporation 7 or charter school under a state employee health plan it must provide 8 coverage for all active and retired employees of the school corporation 9 or charter school under the state employee health plan (other than any 10 employees covered by an Indiana comprehensive health insurance 11 association policy or individuals who retire from the school corporation 12 before July 1, 2010, or charter school before July 1, 2011) if coverage 13 was provided for these employees under the prior policies. 14 (c) A school corporation or charter school shall provide active 15 and retired employees of the school corporation or charter school 16 with the option to elect coverage of health care services under a 17 state employee health plan if the: 18 (1) school corporation or charter school offers an employee 19 health coverage program under IC 20-24-3-4(b)(3)(S) or 20 IC 20-26-17; and 21 (2) sum of the employer and employee contributions for a 22 similarly situated state employee health plan available under 23 this section is less expensive than the sum of the employer and 24 employee contributions for a similarly situated employee 25 health coverage program described in subdivision (1). 26 (c) (d) The following apply if to a school corporation or charter 27 school elects to provide that provides coverage for active and retired 28 employees of the school corporation or charter school under subsection 29 (b): this section: 30 (1) The state shall not pay any part of the cost of the coverage. 31 (2) The coverage provided to an active or retired school 32 corporation or charter school employee under this section must be 33 the same as the coverage provided to an active or retired state 34 employee under the state employee health plan. 35 (3) Notwithstanding sections 2.2 and 2.6 of this chapter: 36 (A) the school corporation or charter school shall pay for the 37 coverage provided to an active or retired school corporation or 38 charter school employee under this section an amount not 39 more than the amount paid by the state for coverage provided 40 to an active or retired state employee under the state employee 41 health plan; and 42 (B) an active or retired school corporation or charter school 2025 IN 146—LS 7471/DI 143 8 1 employee shall pay for the coverage provided to the active or 2 retired school corporation or charter school employee under 3 this section an amount that is at least equal to the amount paid 4 by an active or retired state employee for coverage provided to 5 the active or retired state employee under the state employee 6 health plan. 7 However, this subdivision does not apply to contractual 8 commitments made by a school corporation to individuals who 9 retire before July 1, 2010, or by a charter school to individuals 10 who retire before July 1, 2011. 11 (4) The school corporation or charter school shall pay any 12 administrative costs of the school corporation's or charter school's 13 participation in the state employee health plan. 14 (5) The school corporation or charter school shall provide the 15 coverage elected under subsection (b) for a period of at least three 16 (3) years beginning on the date the coverage of the school 17 corporation or charter school employees under the state employee 18 health plan begins. 19 (d) (e) The state personnel department shall provide an enrollment 20 period at least every thirty (30) days for a school corporation or charter 21 school that elects to provide provides coverage under subsection (b). 22 this section. 23 (e) (f) The state personnel department may adopt rules under 24 IC 4-22-2 to implement this section. 25 (f) (g) Neither this section nor a school corporation's or charter 26 school's election to participate participation in a state employee health 27 plan as provided in this section impairs the rights of an exclusive 28 representative of the certificated or noncertificated employees of the 29 school corporation or charter school to collectively bargain all matters 30 related to school employee health insurance programs and benefits. 31 SECTION 4. IC 20-20-50 IS ADDED TO THE INDIANA CODE 32 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 33 JULY 1, 2025]: 34 Chapter 50. Indiana Teacher Recruitment Program 35 Sec. 1. As used in this chapter, "fund" refers to the Indiana 36 teacher recruitment program fund established by section 4 of this 37 chapter. 38 Sec. 2. As used in this chapter, "program" refers to the Indiana 39 teacher recruitment program established by section 3 of this 40 chapter. 41 Sec. 3. (a) The Indiana teacher recruitment program is 42 established. The purpose of the program is to provide grants to 2025 IN 146—LS 7471/DI 143 9 1 training and recruitment programs for teachers in critical shortage 2 areas, as determined by the department, based on data contained 3 in the educator supply and demand marketplace maintained on the 4 department's website. 5 (b) The department shall administer the program. 6 Sec. 4. (a) The Indiana teacher recruitment program fund is 7 established for the purposes of implementing the program 8 described in section 3 of this chapter. 9 (b) The fund consists of the following: 10 (1) Appropriations from the general assembly. 11 (2) Gifts to the fund. 12 (3) Grants, including grants from private entities. 13 (4) Any federal grants received to supplement the fund. 14 (c) The department shall administer the fund. 15 Sec. 5. The department shall do the following: 16 (1) Create an application and approval process for training 17 and recruitment programs. 18 (2) Determine guidelines for awarding grants under the 19 program. 20 SECTION 5. IC 20-26-17-5, AS AMENDED BY P.L.143-2016, 21 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 22 JULY 1, 2025]: Sec. 5. (a) The following apply with respect to a school 23 corporation's employee health coverage program: 24 (1) If the school corporation pays a commission, a bonus, an 25 override, a contingency fee, or any other compensation to an 26 insurance producer or other adviser in connection with the health 27 coverage, the school corporation shall: 28 (A) specify the commission, bonus, override, contingency fee, 29 or other compensation in the school corporation's annual 30 budget fixed under IC 6-1.1-17; and 31 (B) make the information specified under clause (A) available 32 to the public upon request. 33 (2) The school corporation may allow: 34 (A) members of the school corporation's governing body; or 35 (B) an attorney of the school corporation's governing body; 36 to be covered under the school corporation's employee health 37 coverage program. 38 (3) Except as provided in subsection (b), all individuals insured 39 under the school corporation's employee health coverage 40 program: 41 (A) are eligible for the same coverage as all other individuals 42 insured under the program; and 2025 IN 146—LS 7471/DI 143 10 1 (B) to the extent allowed by federal law, may pay different 2 amounts for the coverage. 3 (b) Except as provided in IC 5-10-8-6.7(b), a school corporation: 4 (1) may: 5 (A) make an assignment of wages upon the request of a school 6 corporation employee in accordance with IC 22-2-6-2 to pay 7 the school corporation employee's share of premiums for 8 health insurance that is available to the school corporation 9 employee as a result of a collective bargaining agreement: 10 (i) negotiated with the school corporation by a labor 11 organization; and 12 (ii) under which the school corporation employee is covered; 13 and 14 (B) pay the school corporation's share of premiums for the 15 bargained health insurance; and 16 (2) is not required to make the bargained health insurance 17 available to all school corporation employees. 18 (c) If a school corporation offers a health plan under this 19 chapter, a school corporation employee may elect to participate in: 20 (1) the health plan offered by the employee's school 21 corporation under this chapter; or 22 (2) a state employee health plan described in IC 5-10-8-6.7, if 23 the sum of the employer and employee contributions for a 24 similarly situated state employee health plan is less expensive 25 than the sum of the employer and employee contributions for 26 a similarly situated health plan described in subdivision (1). 27 (d) If a school corporation employee elects to participate in a 28 plan described under subsection (c)(2) that is less expensive than 29 a plan described under subsection (c)(1), the employee's school 30 corporation shall do the following: 31 (1) Determine the difference between the amount of the plan 32 described in subsection (c)(1) and the amount of the plan 33 described in subsection (c)(2). 34 (2) Apply, as directed by the employee, the result of the 35 calculation described in subdivision (1) to: 36 (A) the employee's defined contribution account, if the 37 employee maintains a defined contribution account; or 38 (B) the employee's annual salary. 39 SECTION 6. IC 20-26-22 IS ADDED TO THE INDIANA CODE 40 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 41 JULY 1, 2025]: 42 Chapter 22. Parental Leave for Teachers 2025 IN 146—LS 7471/DI 143 11 1 Sec. 1. As used in this chapter, "employee" means a teacher who 2 is employed by a school corporation. 3 Sec. 2. As used in this chapter, "stillbirth" means a birth after 4 twenty (20) weeks of gestation that is not a live birth. 5 Sec. 3. (a) A full-time employee who has been employed by a 6 school corporation for at least six (6) consecutive months shall be 7 granted not less than twenty (20) days of paid leave upon any of the 8 following events: 9 (1) The birth of the employee's child. 10 (2) The birth of a child to the employee's spouse. 11 (3) The placement of a child for adoption with the employee. 12 (4) The stillbirth of the employee's child. 13 (b) A part-time employee who has been employed by a school 14 corporation for at least six (6) consecutive months shall be granted 15 not less than ten (10) days of paid leave upon any of the following 16 events: 17 (1) The birth of the employee's child. 18 (2) The birth of a child to the employee's spouse. 19 (3) The placement of a child for adoption with the employee. 20 (4) The stillbirth of the employee's child. 21 (c) Any leave to which an employee is entitled under subsection 22 (a) or (b) that is not taken: 23 (1) less than six (6) months after the birth, placement for 24 adoption, or stillbirth; or 25 (2) before the employee's separation from employment with 26 the school corporation; 27 whichever is earlier, is forfeited. 28 Sec. 4. (a) A school corporation shall compensate an employee 29 granted leave under this chapter at the employee's regular rate of 30 pay for the regular work days during which the employee is absent 31 from work. 32 (b) A leave of absence granted to an employee under this 33 chapter is in addition to vacation days, sick days, personal days, 34 and compensatory time that the employee accrues. 35 (c) If an employee is eligible for leave under the federal Family 36 Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.), the leave 37 provided by this chapter runs concurrently with the amount of 38 leave available under the federal Family Medical Leave Act of 1993 39 (29 U.S.C. 2601 et seq.). 40 (d) An employee's service shall be considered uninterrupted by 41 a leave of absence under this chapter for purposes of determining 42 the following: 2025 IN 146—LS 7471/DI 143 12 1 (1) Seniority. 2 (2) Salary or salary advancement. 3 (3) Performance awards. 4 (4) The receipt of a benefit that may be affected by a leave of 5 absence. 6 SECTION 7. IC 20-28-3-1, AS AMENDED BY P.L.150-2024, 7 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 8 JULY 1, 2025]: Sec. 1. (a) As used in this section, "teacher candidate" 9 means an individual recommended for an initial teaching license from 10 a teacher preparation program located in Indiana. 11 (b) As used in this section, "teacher preparation program" includes, 12 but is not limited to, the following: 13 (1) A teacher education school or department. 14 (2) A transition to teaching program under IC 20-28-4. 15 (3) Any other entity approved by the department to offer a course 16 of study leading to an initial teaching license. 17 (c) The department shall: 18 (1) arrange a statewide system of professional instruction for 19 teacher education; 20 (2) accredit and review teacher preparation programs that comply 21 with the rules of the department; 22 (3) approve content area licensure programs for particular kinds 23 of teachers in accredited teacher preparation programs; and 24 (4) specify the types of licenses for individuals who complete 25 programs of approved courses. 26 (d) The department shall work with teacher preparation programs to 27 develop a system of teacher education that ensures individuals who 28 complete teacher preparation programs are able to meet the highest 29 professional standards. 30 (e) Before July 1, 2015, the department shall establish standards for 31 the continuous improvement of program processes and the performance 32 of individuals who complete teacher preparation programs. The state 33 board shall adopt rules containing the standards not later than two 34 hundred seventy (270) days after the department finishes the standards. 35 (f) The standards established under subsection (e) must include 36 benchmarks for performance, including test score data for each teacher 37 preparation entity on content area licensure tests and test score data for 38 each teacher preparation entity on pedagogy licensure tests. 39 (g) Each teacher preparation program shall annually report the 40 program's performance on the standards and benchmarks established 41 under this section to the department. The department shall make the 42 information reported under this subsection available to the public on 2025 IN 146—LS 7471/DI 143 13 1 the department's website. Each teacher preparation program shall make 2 the information reported under this subsection available to the public 3 on the teacher preparation program's website. In addition to reporting 4 performance, each teacher preparation program must report to the 5 department the following: 6 (1) The attrition, retention, and completion rates of teacher 7 candidates for the previous three (3) calendar years. The teacher 8 preparation program must also provide underlying data, as 9 determined by the department, used as part of calculating the 10 teacher preparation program's retention rates. 11 (2) The number of teacher candidates in each content area who 12 complete the teacher preparation program during the year, 13 disaggregated by ranges of cumulative grade point averages. 14 (3) The number of teacher candidates in each content area who, 15 during the year: 16 (A) do not pass a content area licensure examination; and 17 (B) do not retake the content area licensure examination. 18 (h) In making information available to the public on the 19 department's website, the department shall include in the report under 20 subsection (g), in addition to the matrix ratings described in subsection 21 (i), the following information: 22 (1) Average scaled or standard scores of teacher candidates who 23 complete teacher preparation programs on basic skills, content 24 area, and pedagogy licensure examinations. 25 (2) The average number of times teacher candidates who 26 complete a teacher preparation program take each licensing test 27 before receiving a passing score and the percentage of teacher 28 candidates who receive a passing score on each licensing test on 29 the teacher candidates' first attempts. 30 (i) Not later than July 30, 2016, the department and the commission 31 for higher education, in conjunction with the state board, the 32 Independent Colleges of Indiana, Inc., and teacher preparation 33 programs, shall establish a matrix rating system for teacher preparation 34 programs based on the performance of the programs as demonstrated 35 by the data collected under subsections (g) and (h). The matrix rating 36 system may not rank or compare teacher preparation programs. The 37 matrix rating system must be based on data collected for teachers who 38 initially receive their teaching license during the previous three (3) 39 years. The department shall make the matrix ratings available to the 40 public on the department's website. 41 (j) Each teacher preparation program shall report to the department, 42 in a manner prescribed by the department, the teacher preparation 2025 IN 146—LS 7471/DI 143 14 1 program's admission practices, in accordance with: 2 (1) the Council for the Accreditation of Educator Preparation 3 standards, for teacher preparation programs accredited by the 4 Council for the Accreditation of Educator Preparation; 5 (2) rigorous academic entry requirements for admission into a 6 teacher preparatory program that are equivalent to the minimum 7 academic requirements determined by the Council for the 8 Accreditation of Educator Preparation, for teacher preparation 9 programs that are not accredited by the Council for the 10 Accreditation of Educator Preparation; or 11 (3) the Association for Advancing Quality in Educator 12 Preparation standards, for teacher preparation programs 13 accredited by the Association for Advancing Quality in Educator 14 Preparation. 15 The department shall include information reported to the department 16 on the department's website. 17 (k) Not later than July 30, 2016, the department and the commission 18 for higher education, in conjunction with the state board, the 19 Independent Colleges of Indiana, Inc., and teacher preparation 20 programs, shall establish a minimum rating under the matrix rating 21 system established under subsection (i) that teacher preparation 22 programs must achieve to avoid referral under subsection (l). 23 (l) Not later than July 1 of each year, the department shall submit a 24 list of teacher preparation programs that do not meet the minimum 25 rating established under subsection (k) or the requirements of section 26 3.1 of this chapter to the commission for higher education and the 27 Independent Colleges of Indiana, Inc. for one (1) of the following 28 actions: 29 (1) In the case of a state educational institution, the commission 30 for higher education shall place the teacher preparation program 31 on an improvement plan with clear performance goals and a 32 designated period in which the performance goals must be 33 achieved. 34 (2) In the case of a proprietary postsecondary educational 35 institution, the commission for higher education shall recommend 36 to the teacher preparation program an improvement plan with 37 clear performance goals and a designated period in which the 38 performance goals should be achieved. 39 (3) In the case of a nonprofit college or university, the 40 Independent Colleges of Indiana, Inc., shall coordinate a peer 41 review process to make recommendations to the peer institution 42 in achieving the department's performance metrics. 2025 IN 146—LS 7471/DI 143 15 1 (m) The department shall approve at least two (2) accreditors that: 2 (1) accredit teacher preparation programs; and 3 (2) are recognized by the Council for Higher Education 4 Accreditation; 5 to accredit teacher preparation programs for use in Indiana. 6 (n) Not later than December 31, 2024, the department and the 7 commission for higher education, in conjunction with the state board, 8 shall partner with teacher preparation programs to receive an outside 9 evaluation by a nationally recognized nonprofit, nonpartisan 10 organization that leverages evidence based approaches on the science 11 of reading to evaluate teacher preparation reading instruction programs. 12 SECTION 8. IC 20-28-9-26, AS ADDED BY P.L.165-2021, 13 SECTION 154, IS AMENDED TO READ AS FOLLOWS 14 [EFFECTIVE JULY 1, 2025]: Sec. 26. (a) For each school year 15 beginning after June 30, 2022, June 30, 2025, if a school corporation 16 determines that the school corporation cannot establish a minimum 17 salary of forty forty-five thousand dollars ($40,000) ($45,000) for each 18 full-time teacher, the school corporation shall submit a report to the 19 department explaining the school corporation's inability to meet the 20 minimum threshold requirement. 21 (b) A report submitted under this section must include an 22 explanation of the financial challenges, with detailed data, that 23 preclude the school corporation from meeting the minimum salary 24 threshold required under subsection (a). The report must also describe 25 the cost saving measures taken by the school corporation in attempting 26 to meet the minimum salary threshold required under subsection (a). 27 SECTION 9. IC 20-28-9-27, AS AMENDED BY P.L.150-2024, 28 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 29 JUNE 29, 2025]: Sec. 27. (a) As used in this section, "funding floor" 30 means the amount a school corporation expended for full-time teacher 31 salaries during a particular state fiscal year. 32 (b) Subject to subsections (d) and (e), if the amount of state tuition 33 support distributed to a school corporation for a particular state fiscal 34 year is greater than the amount of state tuition support distributed to the 35 school corporation for the preceding state fiscal year, the school 36 corporation may not expend an amount for full-time teacher salaries 37 during the particular state fiscal year that is less than the funding floor 38 for the preceding state fiscal year. 39 (c) For purposes of this section, the amount a school corporation 40 expends for full-time teacher salaries shall include the amount the 41 school corporation expends for participating in a special education 42 cooperative or a career and technical education cooperative that is 2025 IN 146—LS 7471/DI 143 16 1 directly attributable to the salaries of full-time teachers employed by 2 the cooperative, as determined by the department. 3 (d) For purposes of this subsection, stipends paid using teacher 4 appreciation incentivization grants under IC 20-43-10-3.5 are not 5 considered. If a school corporation has awarded stipends to a majority 6 of the school corporation's teachers in each of the two (2) preceding 7 consecutive state fiscal years, an amount equal to the lesser of the total 8 amount of stipends awarded in each of those state fiscal years shall be 9 added to the school corporation's funding floor for the preceding state 10 fiscal year described under subsection (b). 11 (e) Beginning after June 30, 2024, for each state fiscal year that a 12 school corporation fails to meet the expenditure requirements regarding 13 full-time teacher salaries under subsection (b), the department shall 14 submit in both a written and an electronic format a notice to the school 15 corporation's: 16 (1) superintendent; 17 (2) school business officer; and 18 (3) governing body; 19 that the school corporation failed to meet the requirements set forth in 20 subsection (b) for the applicable state fiscal year. 21 (f) If a school corporation's governing body receives a notice from 22 the department under subsection (e), the school corporation shall do the 23 following: 24 (1) Publicly acknowledge receipt of the notice from the 25 department at the governing body's next public meeting. 26 (2) Enter into the governing body's official minutes for the 27 meeting described in subdivision (1) acknowledgment of the 28 notice. 29 (3) Not later than thirty (30) days after the meeting described in 30 subdivision (1), publish on the school corporation's website: 31 (A) the department's notice; and 32 (B) any relevant individual reports prepared by the 33 department. 34 (g) If the department determines a school corporation that received 35 one (1) or more notices from the department under subsection (e) has 36 met the expenditure requirements required under subsection (b) for a 37 subsequent state fiscal year, the school corporation may remove from 38 the school corporation's website any: 39 (1) notices the school corporation received under subsection (e); 40 and 41 (2) relevant individual reports prepared by the department under 42 subsection (f)(3). 2025 IN 146—LS 7471/DI 143 17 1 SECTION 10. IC 20-28-9-28, AS AMENDED BY P.L.150-2024, 2 SECTION 26, AND AS AMENDED BY P.L.136-2024, SECTION 43, 3 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL 4 OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND 5 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: 6 Sec. 28. (a) Subject to subsection (g), (c), for each school year in a state 7 fiscal year beginning after June 30, 2023, June 30, 2025, a school 8 corporation shall expend an amount for teacher compensation that is 9 not less than an amount equal to sixty-two percent (62%) sixty-five 10 percent (65%) of the state tuition support, other than the state tuition 11 support described in subsection (b), distributed to the school 12 corporation during the state fiscal year. For purposes of determining 13 whether a school corporation has complied with this requirement, the 14 amount a school corporation expends for teacher compensation shall 15 include the amount the school corporation expends for adjunct 16 teachers, supplemental pay for teachers, stipends, and for participating 17 in a special education cooperative or an interlocal agreement or 18 consortium that is directly attributable to the compensation of teachers 19 employed by the cooperative or interlocal agreement or consortium. 20 The amount a school corporation expends on teacher compensation 21 shall also include the amount the school corporation expends on 22 dropout recovery educational services for an at-risk student enrolled 23 in the school corporation provided by an agreement with an eligible 24 school that is directly attributable to the compensation of teachers 25 employed by the eligible school. Teacher benefits include all benefit 26 categories collected by the department for Form 9 purposes. 27 (b) If a school corporation determines that the school corporation 28 cannot comply with the requirement under subsection (a) for a 29 particular school year, the school corporation shall apply for a waiver 30 from the department. 31 (c) The waiver application must include an explanation of the 32 financial challenges, with detailed data, that preclude the school 33 corporation from meeting the requirement under subsection (a) and 34 describe the cost saving measures taken by the school corporation in 35 attempting to meet the requirement in subsection (a). The waiver may 36 also include an explanation of an innovative or efficient approach in 37 delivering instruction that is responsible for the school corporation 38 being unable to meet the requirement under subsection (a). 39 (d) If, after review, the department determines that the school 40 corporation has exhausted all reasonable efforts in attempting to meet 41 the requirement in subsection (a), the department may grant the school 42 corporation a one (1) year exception from the requirement. 2025 IN 146—LS 7471/DI 143 18 1 (e) A school corporation that receives a waiver under this section 2 shall work with the department to develop a plan to identify additional 3 cost saving measures and any other steps that may be taken to allow 4 the school corporation to meet the requirement under subsection (a). 5 (f) A school corporation may not receive more than three (3) 6 waivers under this section. 7 (b) State tuition support distributed to a school corporation for 8 students enrolled in the school corporation who are receiving one 9 hundred percent (100%) virtual instruction from a teacher employed 10 by a third party provider with whom the school corporation has 11 contracted is not included as state tuition support distributed to the 12 school corporation for purposes of subsection (a). 13 (g) (c) For purposes of determining whether a school corporation 14 has complied with the requirement in subsection (a), distributions from 15 the curricular materials fund established by IC 20-40-22-5 that are 16 deposited in a school corporation's education fund in a state fiscal 17 year are not considered to be state tuition support distributed to the 18 school corporation during the state fiscal year. 19 (c) (h) (d) Before November 1, 2022, and before November 1 of 20 each year thereafter, the department shall submit a report to the 21 legislative council in an electronic format under IC 5-14-6 and the state 22 budget committee that contains information as to: 23 (1) the percent and amount that each school corporation expended 24 and the statewide total expended for teacher compensation; 25 (2) the percent and amount that each school corporation expended 26 and statewide total expended for teacher benefits, including 27 health, dental, life insurance, and pension benefits; and 28 (3) whether the school corporation met the requirement set forth 29 in subsection (a). and 30 (4) whether the school corporation received a waiver under 31 subsection (d). 32 (d) (e) The department shall publish the report described in 33 subsection (c) (d) on the department's website. 34 (e) (f) Beginning after June 30, 2024, for each state fiscal year that 35 a school corporation fails to expend the amount for teacher 36 compensation as required under subsection (a), the department shall 37 submit in both a written and an electronic format a notice to the school 38 corporation's: 39 (1) superintendent; 40 (2) school business officer; and 41 (3) governing body; 42 that the school corporation failed to meet the requirements set forth in 2025 IN 146—LS 7471/DI 143 19 1 subsection (a) for the applicable state fiscal year. 2 (f) (g) If a school corporation's governing body receives a notice 3 from the department under subsection (e), (f), the school corporation 4 shall do the following: 5 (1) Publicly acknowledge receipt of the notice from the 6 department at the governing body's next public meeting. 7 (2) Enter into the governing body's official minutes for the 8 meeting described in subdivision (1) acknowledgment of the 9 notice. 10 (3) Not later than thirty (30) days after the meeting described in 11 subdivision (1), publish on the school corporation's website: 12 (A) the department's notice; and 13 (B) any relevant individual reports prepared by the 14 department. 15 (g) (h) If the department determines a school corporation that 16 received one (1) or more notices from the department under subsection 17 (e) (f) has met the expenditure requirements required under subsection 18 (a) for a subsequent state fiscal year, the school corporation may 19 remove from the school corporation's website any: 20 (1) notices the school corporation received under subsection (e); 21 (f); and 22 (2) relevant individual reports prepared by the department under 23 subsection (f)(3). (g)(3). 24 SECTION 11. IC 20-29-6-16, AS AMENDED BY P.L.217-2017, 25 SECTION 104, IS AMENDED TO READ AS FOLLOWS 26 [EFFECTIVE JUNE 29, 2025]: Sec. 16. (a) If an agreement has not 27 been reached on the items to be bargained collectively by November 1, 28 as provided in IC 6-1.1-17-5, the parties shall continue the terms of the 29 current contract that is in effect, and the school employer may issue 30 tentative individual contracts and prepare its budget on that basis. 31 During this period, in order to allow the successful resolution of the 32 dispute, the school employer may not unilaterally change the terms or 33 conditions of employment that are issues in dispute. 34 (b) Upon the expiration of the current contract that is in effect, 35 except for teacher appreciation incentivization grant stipends and 36 additions to base salary provided under IC 20-43-10-3.5, the school 37 employer shall continue under the terms of the current contract that is 38 in effect, with no increase or increment in salary, wages, or benefits for 39 any bargaining unit employee until a new contract is executed. 40 (c) The only parts of the contract that must continue under this 41 section are the items contained in the contract and listed in section 4 of 42 this chapter. 2025 IN 146—LS 7471/DI 143 20 1 (d) This section may not be construed as relieving the school 2 employer or the school employee organization from the duty to bargain 3 collectively until a mutual agreement has been reached and a contract 4 entered as called for in this chapter. 5 SECTION 12. IC 20-38-4 IS ADDED TO THE INDIANA CODE 6 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 7 JULY 1, 2025]: 8 Chapter 4. Interstate Teacher Mobility Compact 9 Sec. 0.5. The following interstate teacher mobility compact 10 agreement is enacted into law and entered into by this state with all 11 other states legally joining the interstate agreement in substantially 12 the following form. 13 Sec. 1. Article I, purpose. The purpose of this compact is to 14 facilitate the mobility of teachers across the member states, with 15 the goal of supporting teachers through a new pathway to 16 licensure. Through this compact, the member states seek to 17 establish a collective regulatory framework that expedites and 18 enhances the ability of teachers to move across state lines. This 19 compact is intended to achieve the following objectives and should 20 be interpreted accordingly. The member states hereby ratify the 21 same intentions by subscribing to: 22 (1) Create a streamlined pathway to licensure mobility for 23 teachers. 24 (2) Support the relocation of eligible military spouses. 25 (3) Facilitate and enhance the exchange of licensure, 26 investigative, and disciplinary information between member 27 states. 28 (4) Enhance the power of state and district level education 29 officials to hire qualified, competent teachers by removing 30 barriers to the employment of out-of-state teachers. 31 (5) Support the retention of teachers in the profession by 32 removing barriers to relicensure in a new state. 33 (6) Maintain state sovereignty in the regulation of the 34 teaching profession. 35 Sec. 2. Article II, definitions. As used in this compact, and except 36 as otherwise provided, the following definitions shall govern the 37 terms herein: 38 (1) "Active military member" means any person with 39 full-time duty status in the armed forces of the United States, 40 including members of the National Guard and Reserve. 41 (2) "Adverse action" means any limitation or restriction 42 imposed by a member state's licensing authority, such as 2025 IN 146—LS 7471/DI 143 21 1 revocation, suspension, reprimand, probation, or limitation on 2 the licensee's ability to work as a teacher. 3 (3) "Bylaws" means those bylaws established by the 4 commission. 5 (4) "Career and technical education license" means a current, 6 valid authorization issued by a member state's licensing 7 authority allowing an individual to serve as a teacher in P-12 8 public educational settings in a specific career and technical 9 education area. 10 (5) "Charter member states" means a member state that has 11 enacted legislation to adopt this compact where such 12 legislation predates the initial meeting of the commission after 13 the effective date of the compact. 14 (6) "Commission" means the interstate administrative body 15 which membership consists of delegates of all states that have 16 enacted this compact, and which is known as the interstate 17 teacher mobility compact commission. 18 (7) "Commissioner" means the delegate of a member state. 19 (8) "Eligible license" means a license to engage in the teaching 20 profession which requires at least a bachelor's degree and the 21 completion of a state approved program for teacher licensure. 22 (9) "Eligible military spouse" means the spouse of any 23 individual in full-time duty status in the active armed forces 24 of the United States including members of the National Guard 25 and Reserve moving as a result of a military mission or 26 military career progression requirements or are on their 27 terminal move as a result of separation or retirement (to 28 include surviving spouses of deceased military members). 29 (10) "Executive committee" means a group of commissioners 30 elected or appointed to act on behalf of, and within the powers 31 granted to them by, the commission as provided for herein. 32 (11) "Licensing authority" means an official, agency, board, 33 or other entity of a state that is responsible for the licensing 34 and regulation of teachers authorized to teach in P-12 public 35 educational settings. 36 (12) "Member state" means any state that has adopted this 37 compact, including all agencies and officials of such a state. 38 (13) "Receiving state" means any state where a teacher has 39 applied for licensure under this compact. 40 (14) "Rule" means any regulation promulgated by the 41 commission under this compact, which shall have the force of 42 law in each member state. 2025 IN 146—LS 7471/DI 143 22 1 (15) "State" means a state, territory, or possession of the 2 United States, and the District of Columbia. 3 (16) "State practice laws" means a member state's laws, rules, 4 and regulations that govern the teaching profession, define the 5 scope of such profession, and create the methods and grounds 6 for imposing discipline. 7 (17) "State specific requirements" means a requirement for 8 licensure covered in coursework or examination that includes 9 content of unique interest to the state. 10 (18) "Teacher" means an individual who currently holds an 11 authorization from a member state that forms the basis for 12 employment in the P-12 public schools of the state to provide 13 instruction in a specific subject area, grade level, or student 14 population. 15 (19) "Unencumbered license" means a current, valid 16 authorization issued by a member state's licensing authority 17 allowing an individual to serve as a teacher in P-12 public 18 educational settings. A unencumbered license is not a 19 restricted, probationary, provisional, substitute, or temporary 20 credential. 21 Sec. 3. Article III, licensure under the compact. 22 (1) Licensure under this compact pertains only to the initial 23 grant of a license by the receiving state. Nothing herein 24 applies to any subsequent or ongoing compliance 25 requirements that a receiving state might require for 26 teachers. 27 (2) Each member state shall, in accordance with the rules of 28 the commission, define, compile, and update as necessary, a 29 list of eligible licenses and career and technical education 30 licenses that the member state is willing to consider for 31 equivalency under this compact and provide the list to the 32 commission. The list shall include those licenses that a 33 receiving state is willing to grant to teachers from other 34 member states, pending a determination of equivalency by the 35 receiving state's licensing authority. 36 (3) Upon the receipt of an application for licensure by a 37 teacher holding an unencumbered eligible license, the 38 receiving state shall determine which of the receiving state's 39 eligible licenses the teacher is qualified to hold and shall grant 40 such a license or licenses to the applicant. Such a 41 determination shall be made in the sole discretion of the 42 receiving state's licensing authority and may include a 2025 IN 146—LS 7471/DI 143 23 1 determination that the applicant is not eligible for any of the 2 receiving state's eligible licenses. For all teachers who hold an 3 unencumbered license, the receiving state shall grant one (1) 4 or more unencumbered license(s) that, in the receiving state's 5 sole discretion, are equivalent to the license(s) held by the 6 teacher in any other member state. 7 (4) For active military members and eligible military spouses 8 who hold a license that is not unencumbered, the receiving 9 state shall grant an equivalent license or licenses that, in the 10 receiving state's sole discretion, is equivalent to the license or 11 licenses held by the teacher in any other member state, except 12 where the receiving state does not have an equivalent license. 13 (5) For a teacher holding an unencumbered career and 14 technical education license, the receiving state shall grant an 15 unencumbered license equivalent to the career and technical 16 education license held by the applying teacher and issued by 17 another member state, as determined by the receiving state in 18 its sole discretion, except where a career and technical 19 education teacher does not hold a bachelor's degree and the 20 receiving state requires a bachelor's degree for licenses to 21 teach career and technical education. A receiving state may 22 require career and technical education teachers to meet state 23 industry recognized requirements, if required by law in the 24 receiving state. 25 Sec. 4. Article IV, licensure not under the compact. 26 (1) Except as provided in Article III above, nothing in this 27 compact shall be construed to limit or inhibit the power of a 28 member state to regulate licensure or endorsements overseen 29 by the member state's licensing authority. 30 (2) When a teacher is required to renew a license received 31 pursuant to this compact, the state granting such a license 32 may require the teacher to complete state specific 33 requirements as a condition of licensure renewal or 34 advancement in that state. 35 (3) For the purposes of determining compensation, a receiving 36 state may require additional information from teachers 37 receiving a license under the provisions of this compact. 38 (4) Nothing in this compact shall be construed to limit the 39 power of a member state to control and maintain ownership 40 of its information pertaining to teachers, or limit the 41 application of a member state's laws or regulations governing 42 the ownership, use, or dissemination of information 2025 IN 146—LS 7471/DI 143 24 1 pertaining to teachers. 2 (5) Nothing in this compact shall be construed to invalidate or 3 alter any existing agreement or other cooperative 4 arrangement which a member state may already be a party 5 to, or limit the ability of a member state to participate in any 6 future agreement or other cooperative arrangement to: 7 (A) award teaching licenses or other benefits based on 8 additional professional credentials, including, but not 9 limited to national board certification; 10 (B) participate in the exchange of names of teachers whose 11 license has been subject to an adverse action by a member 12 state; or 13 (C) participate in any agreement or cooperative 14 arrangement with a non-member state. 15 Sec. 5. Article V, teacher qualifications and requirements for 16 licensure under the compact. 17 (1) Except as provided for active military members or eligible 18 military spouses in Article III above, a teacher may only be 19 eligible to receive a license under this compact where that 20 teacher holds an unencumbered license in a member state. 21 (2) A teacher eligible to receive a license under this compact 22 shall, unless otherwise provided for herein: 23 (A) upon their application to receive a license under this 24 compact, undergo a criminal background check in the 25 receiving state in accordance with the laws and regulations 26 of the receiving state; and 27 (B) provide the receiving state with information in addition 28 to the information required for licensure for the purposes 29 of determining compensation, if applicable. 30 Sec. 6. Article VI, discipline and adverse actions. 31 (1) Nothing in this compact shall be deemed or construed to 32 limit the authority of a member state to investigate or impose 33 disciplinary measures on teachers according to the state 34 practice laws thereof. 35 (2) Member states shall be authorized to receive, and shall 36 provide, files and information regarding the investigation and 37 discipline, if any, of teachers in other member states upon 38 request. Any member state receiving such information or files 39 shall protect and maintain the security and confidentiality 40 thereof, in at least the same manner that it maintains its own 41 investigatory or disciplinary files and information. Prior to 42 disclosing any disciplinary or investigatory information 2025 IN 146—LS 7471/DI 143 25 1 received from another member state, the disclosing state shall 2 communicate its intention and purpose for such disclosure to 3 the member state which originally provided that information. 4 Sec. 7. (a) Article VII, establishment of the interstate teacher 5 mobility compact commission. 6 (1) The interstate compact member states hereby create and 7 establish a joint public agency known as the interstate teacher 8 mobility compact commission: 9 (A) The commission is a joint interstate governmental 10 agency comprised of states that have enacted the interstate 11 teacher mobility compact. 12 (B) Nothing in this interstate compact shall be construed to 13 be a waiver of sovereign immunity. 14 (b) Membership, voting, and meetings. 15 (1) Each member state shall have and be limited to one (1) 16 delegate to the commission, who shall be given the title of 17 commissioner. 18 (2) The commissioner shall be the primary administrative 19 officer of the state licensing authority or their designee. 20 (3) Any commissioner may be removed or suspended from 21 office as provided by the law of the state from which the 22 commissioner is appointed. 23 (4) The member state shall fill any vacancy occurring in the 24 commission within ninety (90) days. 25 (5) Each commissioner shall be entitled to one (1) vote about 26 the promulgation of rules and creation of bylaws and shall 27 otherwise have an opportunity to participate in the business 28 and affairs of the commission. A commissioner shall vote in 29 person or by such other means as provided in the bylaws. The 30 bylaws may provide for commissioners' participation in 31 meetings by telephone or other means of communication. 32 (6) The commission shall meet at least once during each 33 calendar year. Additional meetings shall be held as set forth 34 in the bylaws. 35 (7) The commission shall establish by rule a term of office for 36 commissioners. 37 (c) The commission shall have the following powers and duties: 38 (1) Establish the code of ethics for the commission. 39 (2) Establish the fiscal year of the commission. 40 (3) Establish bylaws for the commission. 41 (4) Maintain its financial records in accordance with the 42 bylaws of the commission. 2025 IN 146—LS 7471/DI 143 26 1 (5) Meet and take such actions as are consistent with the 2 provisions of this interstate compact, the bylaws, and rules of 3 the commission. 4 (6) Promulgate uniform rules to implement and administer 5 this interstate compact. The rules shall have the force and 6 effect of law and shall be binding in all member states. In the 7 event the commission exercises its rulemaking authority in a 8 manner that is beyond the scope of the purposes of the 9 compact, or the powers granted hereunder, then such an 10 action by the commission shall be invalid and have no force 11 and effect of law. 12 (7) Bring and prosecute legal proceedings or actions in the 13 name of the commission, provided that the standing of any 14 member state licensing authority to sue or be sued under 15 applicable law shall not be affected. 16 (8) Purchase and maintain insurance and bonds. 17 (9) Borrow, accept, or contract for services of personnel, 18 including, but not limited to, employees of a member state, or 19 an associated nongovernmental organization that is open to 20 membership by all states. 21 (10) Hire employees, elect or appoint officers, fix 22 compensation, define duties, grant such individuals 23 appropriate authority to carry out the purposes of the 24 compact, and establish the commission's personnel policies 25 and programs relating to conflicts of interest, qualifications 26 of personnel, and other related personnel matters. 27 (11) Lease, purchase, accept appropriate gifts or donations of, 28 or otherwise own, hold, improve, or use, any property, real, 29 personal, or mixed, provided that at all times the commission 30 shall avoid any appearance of impropriety. 31 (12) Sell, convey, mortgage, pledge, lease, exchange, abandon, 32 or otherwise dispose of any property real, personal, or mixed. 33 (13) Establish a budget and make expenditures. 34 (14) Borrow money. 35 (15) Appoint committees, including standing committees 36 composed of members and such other interested persons as 37 may be designated in this interstate compact, rules, or bylaws. 38 (16) Provide and receive information from, and cooperate 39 with, law enforcement agencies. 40 (17) Establish and elect an executive committee. 41 (18) Establish and develop a charter for an executive 42 information governance committee to advise on facilitating 2025 IN 146—LS 7471/DI 143 27 1 exchange of information; use of information, data privacy, 2 and technical support needs, and provide reports as needed. 3 (19) Perform such other functions as may be necessary or 4 appropriate to achieve the purposes of this interstate compact 5 consistent with the state regulation of teacher licensure. 6 (20) Determine whether a state's adopted language is 7 materially different from the model compact language such 8 that the state would not qualify for participation in the 9 compact. 10 (d) The executive committee of the interstate teacher mobility 11 compact commission. 12 (1) The executive committee shall have the power to act on 13 behalf of the commission according to the terms of this 14 interstate compact. 15 (2) The executive committee shall be composed of the 16 following eight (8) voting members: 17 (A) the commission chair, vice chair, and treasurer; and 18 (B) five (5) members who are elected by the commission 19 from the current membership as follows: 20 (i) four (4) voting members representing geographic 21 regions in accordance with commission rules; and 22 (ii) one (1) at large voting member in accordance with 23 commission rules. 24 (3) The commission may add or remove members of the 25 executive committee as provided in commission rules. 26 (4) The executive committee shall meet at least once annually. 27 (5) The executive committee shall have the following duties 28 and responsibilities: 29 (A) Recommend to the entire commission changes to the 30 rules or bylaws, changes to the compact legislation, fees 31 paid by interstate compact member states such as annual 32 dues, and any compact fee charged by the member states 33 on behalf of the commission. 34 (B) Ensure commission administration services are 35 appropriately provided, contractual or otherwise. 36 (C) Prepare and recommend the budget. 37 (D) Maintain financial records on behalf of the 38 commission. 39 (E) Monitor compliance of member states and provide 40 reports to the commission. 41 (F) Perform other duties as provided in rules or bylaws. 42 (6) Meetings of the commission. 2025 IN 146—LS 7471/DI 143 28 1 (A) All meetings shall be open to the public, and public 2 notice of meetings shall be given in accordance with 3 commission bylaws. 4 (B) The commission or the executive committee or other 5 committees of the commission may convene in a closed, 6 non-public meeting if the commission or executive 7 committee or other committees of the commission must 8 discuss: 9 (i) non-compliance of a member state with its obligations 10 under the compact; 11 (ii) the employment, compensation, discipline or other 12 matters, practices or procedures related to specific 13 employees, or other matters related to the commission's 14 internal personnel practices and procedures; 15 (iii) current, threatened, or reasonably anticipated 16 litigation; 17 (iv) negotiation of contracts for the purchase, lease, or 18 sale of goods, services, or real estate; 19 (v) accusing any person of a crime or formally censuring 20 any person; 21 (vi) disclosure of trade secrets or commercial or financial 22 information that is privileged or confidential; 23 (vii) disclosure of information of a personal nature 24 where disclosure would constitute a clearly unwarranted 25 invasion of personal privacy; 26 (viii) disclosure of investigative records compiled for law 27 enforcement purposes; 28 (ix) disclosure of information related to any investigative 29 reports prepared by or on behalf of or for use of the 30 commission or other committee charged with 31 responsibility of investigation or determination of 32 compliance issues pursuant to the compact; 33 (x) matters specifically exempted from disclosure by 34 federal or member state statute; or 35 (xi) others matters as set forth by commission bylaws 36 and rules. 37 (C) If a meeting, or portion of a meeting, is closed pursuant 38 to this provision, the commission's legal counsel or 39 designee shall certify that the meeting may be closed and 40 shall reference each relevant exempting provision. 41 (D) The commission shall keep minutes of commission 42 meetings and shall provide a full and accurate summary of 2025 IN 146—LS 7471/DI 143 29 1 actions taken, and the reasons therefore, including a 2 description of the views expressed. All documents 3 considered in connection with an action shall be identified 4 in such minutes. All minutes and documents of a closed 5 meeting shall remain under seal, subject to release by a 6 majority vote of the commission or order of a court of 7 competent jurisdiction. 8 (7) Financing of the commission. 9 (A) The commission shall pay, or provide for the payment 10 of, the reasonable expenses of its establishment, 11 organization, and ongoing activities. 12 (B) The commission may accept all appropriate donations 13 and grants of money, equipment, supplies, materials, and 14 services, and receive, utilize, and dispose of the same, 15 provided that at all times the commission shall avoid any 16 appearance of impropriety or conflict of interest. 17 (C) The commission may levy on and collect an annual 18 assessment from each member state or impose fees on 19 other parties to cover the cost of the operations and 20 activities of the commission, in accordance with the 21 commission rules. 22 (D) The commission shall not incur obligations of any kind 23 prior to securing the funds adequate to meet the same; nor 24 shall the commission pledge the credit of any of the 25 member states, except by and with the authority of the 26 member state. 27 (E) The commission shall keep accurate accounts of all 28 receipts and disbursements. The receipts and 29 disbursements of the commission shall be subject to 30 accounting procedures established under commission 31 bylaws. All receipts and disbursements of funds of the 32 commission shall be reviewed annually in accordance with 33 commission bylaws, and a report of the review shall be 34 included in and become part of the annual report of the 35 commission. 36 (8) Qualified immunity, defense, and indemnification. 37 (A) The members, officers, executive director, employees, 38 and representatives of the commission shall be immune 39 from suit and liability, either personally or in their official 40 capacity, for any claim for damage to or loss of property or 41 personal injury or other civil liability caused by or arising 42 out of any actual or alleged act, error, or omission that 2025 IN 146—LS 7471/DI 143 30 1 occurred, or that the person against whom the claim is 2 made had a reasonable basis for believing occurred within 3 the scope of commission employment, duties, or 4 responsibilities; provided that nothing in this paragraph 5 shall be construed to protect any such person from suit or 6 liability for any damage, loss, injury, or liability caused by 7 the intentional or willful or wanton misconduct of that 8 person. 9 (B) The commission shall defend any member, officer, 10 executive director, employee, or representative of the 11 commission in any civil action seeking to impose liability 12 arising out of any actual or alleged act, error, or omission 13 that occurred within the scope of commission employment, 14 duties, or responsibilities, or that the person against whom 15 the claim is made had a reasonable basis for believing 16 occurred within the scope of commission employment, 17 duties, or responsibilities; provided that nothing herein 18 shall be construed to prohibit that person from retaining 19 his or her own counsel; and provided further, that the 20 actual or alleged act, error, or omission did not result from 21 that person's intentional or willful or wanton misconduct. 22 (C) The commission shall indemnify and hold harmless any 23 member, officer, executive director, employee, or 24 representative of the commission for the amount of any 25 settlement or judgment obtained against that person 26 arising out of any actual or alleged act, error, or omission 27 that occurred within the scope of commission employment, 28 duties, or responsibilities, or that such person had a 29 reasonable basis for believing occurred within the scope of 30 commission employment, duties, or responsibilities, 31 provided that the actual or alleged act, error, or omission 32 did not result from the intentional or willful or wanton 33 misconduct of that person. 34 Sec. 8. Article VIII, rulemaking. 35 (1) The commission shall exercise its rulemaking powers 36 pursuant to the criteria set forth in this interstate compact 37 and the rules adopted thereunder. Rules and amendments 38 shall become binding as of the date specified in each rule or 39 amendment. 40 (2) The commission shall promulgate reasonable rules to 41 achieve the intent and purpose of this interstate compact. In 42 the event the commission exercises its rulemaking authority 2025 IN 146—LS 7471/DI 143 31 1 in a manner that is beyond purpose and intent of this 2 interstate compact, or the powers granted hereunder, then 3 such an action by the commission shall be invalid and have no 4 force and effect of law in the member states. 5 (3) If a majority of the legislatures of the member states 6 rejects a rule, by enactment of a statute or resolution in the 7 same manner used to adopt the compact within four (4) years 8 of the date of adoption of the rule, then such rule shall have no 9 further force and effect in any member state. 10 (4) Rules or amendments to the rules shall be adopted or 11 ratified at a regular or special meeting of the commission in 12 accordance with commission rules and bylaws. 13 (5) Upon determination that an emergency exists, the 14 commission may consider and adopt an emergency rule with 15 forty-eight (48) hours' notice, with opportunity to comment, 16 provided that the usual rulemaking procedures shall be 17 retroactively applied to the rule as soon as reasonably 18 possible, in no event later than ninety (90) days after the 19 effective date of the rule. For the purposes of this provision, 20 an emergency rule is one that must be adopted immediately in 21 order to do the following: 22 (A) Meet an imminent threat to public health, safety, or 23 welfare. 24 (B) Prevent a loss of commission or member state funds. 25 (C) Meet a deadline for the promulgation of an 26 administrative rule that is established by federal law or 27 rule. 28 (D) Protect public health and safety. 29 Sec. 9. Article IX, facilitating information exchange. 30 (1) The commission shall provide for facilitating the exchange 31 of information to administer and implement the provisions of 32 this compact in accordance with the rules of the commission, 33 consistent with generally accepted data protection principles. 34 (2) Nothing in this compact shall be deemed or construed to 35 alter, limit, or inhibit the power of a member state to control 36 and maintain ownership of its licensee information or alter, 37 limit, or inhibit the laws or regulations governing licensee 38 information in the member state. 39 Sec. 10. Article X, oversight, dispute resolution, and 40 enforcement. 41 (1) Oversight. 42 (A) The executive and judicial branches of state 2025 IN 146—LS 7471/DI 143 32 1 government in each member state shall enforce this 2 compact and take all actions necessary and appropriate to 3 effectuate the compact's purposes and intent. The 4 provisions of this compact shall have standing as statutory 5 law. 6 (B) Venue is proper and judicial proceedings by or against 7 the commission shall be brought solely and exclusively in 8 a court of competent jurisdiction where the principal office 9 of the commission is located. The commission may waive 10 venue and jurisdictional defenses to the extent it adopts or 11 consents to participate in alternative dispute resolution 12 proceedings. Nothing herein shall affect or limit the 13 selection or propriety of venue in any action against a 14 licensee for professional malpractice, misconduct or any 15 such similar matter. 16 (C) All courts and all administrative agencies shall take 17 judicial notice of the compact, the rules of the commission, 18 and any information provided to a member state pursuant 19 thereto in any judicial or quasi-judicial proceeding in a 20 member state pertaining to the subject matter of this 21 compact, or which may affect the powers, responsibilities, 22 or actions of the commission. 23 (D) The commission shall be entitled to receive service of 24 process in any proceeding regarding the enforcement or 25 interpretation of the compact and shall have standing to 26 intervene in such a proceeding for all purposes. Failure to 27 provide the commission service of process shall render a 28 judgment or order void as to the commission, this compact, 29 or promulgated rules. 30 (2) Default, technical assistance, and termination. 31 (A) If the commission determines that a member state has 32 defaulted in the performance of its obligations or 33 responsibilities under this compact or the promulgated 34 rules, the commission shall: 35 (i) provide written notice to the defaulting state and 36 other member states of the nature of the default, the 37 proposed means of curing the default or any other action 38 to be taken by the commission; and 39 (ii) provide remedial training and specific technical 40 assistance regarding the default. 41 (3) If a state in default fails to cure the default, the defaulting 42 state may be terminated from the compact upon an 2025 IN 146—LS 7471/DI 143 33 1 affirmative vote of a majority of the commissioners of the 2 member states, and all rights, privileges, and benefits 3 conferred on that state by this compact may be terminated on 4 the effective date of termination. A cure of the default does 5 not relieve the offending state of obligations or liabilities 6 incurred during the period of default. 7 (4) Termination of membership in the compact shall be 8 imposed only after all other means of securing compliance 9 have been exhausted. Notice of intent to suspend or terminate 10 shall be given by the commission to the governor, the majority 11 and minority leaders of the defaulting state's legislature, the 12 state licensing authority and each of the member states. 13 (5) A state that has been terminated is responsible for all 14 assessments, obligations, and liabilities incurred through the 15 effective date of termination, including obligations that extend 16 beyond the effective date of termination. 17 (6) The commission shall not bear any costs related to a state 18 that is found to be in default or that has been terminated from 19 the compact, unless agreed upon in writing between the 20 commission and the defaulting state. 21 (7) The defaulting state may appeal the action of the 22 commission by petitioning the United States District Court for 23 the District of Columbia or the federal district where the 24 commission has its principal offices. The prevailing party 25 shall be awarded all costs of such litigation, including 26 reasonable attorney's fees. 27 (8) Dispute resolution. 28 (A) Upon request by a member state, the commission shall 29 attempt to resolve disputes related to the compact that 30 arise among member states and between member and 31 non-member states. 32 (B) The commission shall promulgate a rule providing for 33 both binding and nonbinding alternative dispute resolution 34 for disputes as appropriate. 35 (9) Enforcement. 36 (A) The commission, in the reasonable exercise of its 37 discretion, shall enforce the provisions and rules of this 38 compact. 39 (B) By majority vote, the commission may initiate legal 40 action in the United States District Court for the District of 41 Columbia or the federal district where the commission has 42 its principal offices against a member state in default to 2025 IN 146—LS 7471/DI 143 34 1 enforce compliance with the provisions of the compact and 2 its promulgated rules and bylaws. The relief sought may 3 include both injunctive relief and damages. In the event 4 judicial enforcement is necessary, the prevailing party 5 shall be awarded all costs of such litigation, including 6 reasonable attorney's fees. The remedies herein shall not 7 be the exclusive remedies of the commission. The 8 commission may pursue any other remedies available 9 under federal or state law. 10 Sec. 11. Article XI, effectuation, withdrawal, and amendment. 11 (1) The compact shall come into effect on the date on which 12 the compact statute is enacted into law in the tenth member 13 state. 14 (A) On or after the effective date of the compact, the 15 commission shall convene and review the enactment of 16 each of the charter member states to determine if the 17 statute enacted by each such charter member state is 18 materially different from the model compact statute. 19 (B) A charter member state whose enactment is found to 20 be materially different from the model compact statute 21 shall be entitled to the default process set forth in Article 22 X. 23 (C) Member states enacting the compact subsequent to the 24 charter member states shall be subject to the process set 25 forth in Article VII, section 7(c)(20) of this chapter to 26 determine if their enactments are materially different from 27 the model compact statute and whether they qualify for 28 participation in the compact. 29 (2) If any member state is later found to be in default, or is 30 terminated or withdraws from the compact, the commission 31 shall remain in existence and the compact shall remain in 32 effect even if the number of member states should be less than 33 ten (10). 34 (3) Any state that joins the compact after the commission's 35 initial adoption of the rules and bylaws shall be subject to the 36 rules and bylaws as they exist on the date on which the 37 compact becomes law in that state. Any rule that has been 38 previously adopted by the commission shall have the full force 39 and effect of law on the day the compact becomes law in that 40 state, as the rules and bylaws may be amended as provided in 41 this compact. 42 (4) Any member state may withdraw from this compact by 2025 IN 146—LS 7471/DI 143 35 1 enacting a statute repealing the same. 2 (A) A member state's withdrawal shall not take effect until 3 six (6) months after enactment of the repealing statute. 4 (B) Withdrawal shall not affect the continuing requirement 5 of the withdrawing state's licensing authority to comply 6 with the investigative and adverse action reporting 7 requirements of this act prior to the effective date of 8 withdrawal. 9 (5) This compact may be amended by the member states. No 10 amendment to this compact shall become effective and 11 binding upon any member state until it is enacted into the 12 laws of all member states. 13 Sec. 12. Article XII, construction and severability. 14 (1) This compact shall be liberally construed to effectuate the 15 purposes thereof. The provisions of this compact shall be 16 severable and if any phrase, clause, sentence, or provision of 17 this compact is declared to be contrary to the constitution of 18 any member state or a state seeking membership in the 19 compact, or of the United States or the applicability thereof to 20 any other government, agency, person, or circumstance is 21 held invalid, the validity of the remainder of this compact and 22 the applicability thereof to any government, agency, person, 23 or circumstance shall not be affected thereby. If this compact 24 shall be held contrary to the constitution of any member state, 25 the compact shall remain in full force and effect as to the 26 remaining member states and in full force and effect as to the 27 member state affected as to all severable matters. 28 Sec. 13. Article XIII, consistent effect and conflict with other 29 state laws. 30 (1) Nothing herein shall prevent or inhibit the enforcement of 31 any other law of a member state that is not inconsistent with 32 the compact. 33 (2) Any laws, statutes, regulations, or other legal 34 requirements in a member state in conflict with the compact 35 are superseded to the extent of the conflict. 36 (3) All permissible agreements between the commission and 37 the member states are binding in accordance with their terms. 38 Sec. 14. (a) The secretary of education, or a person authorized 39 to act on behalf of the secretary of education, is the education 40 official selected by this state to negotiate and enter into, on behalf 41 of this state, contracts under the interstate agreement set forth in 42 section 1 of this chapter. 2025 IN 146—LS 7471/DI 143 36 1 (b) The designated education official, acting jointly with similar 2 officers of other party states, may adopt rules to carry out more 3 effectively the terms of the interstate agreement. 4 (c) The designated education official is authorized, empowered, 5 and directed to cooperate with all departments, agencies, and 6 officers of state government and its subdivisions in facilitating the 7 proper administration of the following: 8 (1) The interstate agreement. 9 (2) A supplementary agreement entered into by this state 10 under the interstate agreement. 11 SECTION 13. IC 20-43-10-3.5, AS AMENDED BY P.L.93-2024, 12 SECTION 147, IS AMENDED TO READ AS FOLLOWS 13 [EFFECTIVE JUNE 29, 2025]: Sec. 3.5. (a) As used in this section, 14 "school" means a school corporation or charter school. and a virtual 15 charter school. 16 (b) Subject to the requirements of this section, A school qualifies for 17 a teacher appreciation incentivization grant as provided in this section 18 for a state fiscal year if one (1) or more licensed teachers 19 (1) employed in the classroom by the school; or 20 (2) directly providing virtual education; 21 were rated as effective or as highly effective, using the most recently 22 completed teacher ratings. are employed to provide direct 23 instruction to students in the classroom. 24 (c) A school may not receive a teacher appreciation incentivization 25 grant under this section unless the: 26 (1) the school has in the state fiscal year in which the teacher 27 appreciation incentivization grants are made under this section 28 (A) adopted an annual policy concerning the distribution of 29 teacher appreciation grants; and 30 (B) submitted the policy a distribution plan to the department 31 for approval; and 32 (2) the department has approved the policy. approves the plan; 33 and 34 (3) governing body or the equivalent for a charter school 35 adopts the approved plan. 36 The department shall specify the date by which a policy plan described 37 in subdivision (1) must be submitted to the department. 38 (d) The amount of a teacher appreciation incentivization grant for 39 a qualifying school corporation or virtual charter school is equal to: 40 (1) thirty-seven dollars and fifty-cents ($37.50); multiplied by 41 (2) the school's current ADM. 42 However, the grant amount for a virtual charter school may not exceed 2025 IN 146—LS 7471/DI 143 37 1 the statewide average grant amount. 2 (e) The following apply to the distribution of teacher appreciation 3 incentivization grants: 4 (1) If the total amount to be distributed as teacher appreciation 5 incentivization grants for a particular state fiscal year exceeds the 6 amount appropriated by the general assembly for teacher 7 appreciation incentivization grants for that state fiscal year, the 8 total amount to be distributed as teacher appreciation 9 incentivization grants to schools shall be proportionately reduced 10 so that the total reduction equals the amount of the excess. The 11 amount of the reduction for a particular school is equal to the total 12 amount of the excess multiplied by a fraction. The numerator of 13 the fraction is the amount of the teacher appreciation grant that 14 the school would have received if a reduction were not made 15 under this section. The denominator of the fraction is the total 16 amount that would be distributed as teacher appreciation grants 17 to all schools if a reduction were not made under this section. 18 (2) If the total amount to be distributed as teacher appreciation 19 incentivization grants for a particular state fiscal year is less than 20 the amount appropriated by the general assembly for teacher 21 appreciation incentivization grants for that state fiscal year, the 22 total amount to be distributed as teacher appreciation 23 incentivization grants to schools for that particular state fiscal 24 year shall be proportionately increased so that the total amount to 25 be distributed equals the amount of the appropriation for that 26 particular state fiscal year. 27 (f) The annual teacher appreciation incentivization grant to which 28 a school is entitled for a state fiscal year shall be distributed to the 29 school before December 5 April 15 of that state fiscal year. 30 (g) The following apply to a school's policy plan under subsection 31 (c) concerning the distribution of teacher appreciation incentivization 32 grants: 33 (1) The governing body or the equivalent for a charter school 34 shall differentiate between a teacher rated as a highly effective 35 teacher and a teacher rated as an effective teacher. The policy 36 must provide that the amount of a stipend awarded to a teacher 37 rated as a highly effective teacher must be at least twenty-five 38 percent (25%) more than the amount of a stipend awarded to a 39 teacher rated as an effective teacher. 40 (2) The governing body of a school may differentiate between 41 school buildings. distribute differentiated stipends under the 42 plan based on one (1) or more of the following criteria: 2025 IN 146—LS 7471/DI 143 38 1 (A) Whether the teacher serves as the teacher of record or 2 teacher of service for students receiving special education 3 services. 4 (B) Whether the teacher serves as the teacher of record or 5 teacher of service for English language learners. 6 (C) Whether the teacher has an average class size of more 7 than thirty (30) students. 8 (D) Whether the teacher has five (5) or more years of 9 service and serves in an official mentoring capacity for one 10 (1) or more teachers. 11 (E) Whether the teacher serves as the teacher of record in 12 high need areas based on educator supply and demand 13 data as determined by the department. 14 (F) Whether the teacher serves as the teacher of record or 15 teacher of service for students who demonstrate significant 16 annual growth as determined by the department on one (1) 17 or more of the following: 18 (i) The determinant evaluation of reading skills approved 19 by the state board under IC 20-32-8.5-2. 20 (ii) The statewide assessment program under 21 IC 20-32-5.1-7. 22 (iii) Any additional performance indicator approved by 23 the department. 24 (3) (2) A stipend to an individual teacher in a particular year is 25 not subject to collective bargaining and is in addition to the 26 minimum salary or increases in salary set under IC 20-28-9-1.5. 27 The governing body may provide that an amount not exceeding 28 fifty percent (50%) of the amount of a stipend to an individual 29 teacher in a particular state fiscal year becomes a permanent part 30 of and increases the base salary of the teacher receiving the 31 stipend for school years beginning after the state fiscal year in 32 which the stipend is received. The addition to base salary is not 33 subject to collective bargaining. 34 (h) A teacher appreciation incentivization grant received by a 35 school shall be allocated among and used only to pay cash stipends to 36 all licensed teachers employed to provide direct instruction to 37 students in the classroom who are rated as effective or as highly 38 effective and employed by the school as of December 1. A school may 39 allocate up to twenty percent (20%) of the grant received by the school 40 to provide a supplemental award to teachers with less than five (5) 41 years of service who are rated as effective or as highly effective. A 42 school may allocate up to ten percent (10%) of the grant received by 2025 IN 146—LS 7471/DI 143 39 1 the school to provide a supplemental award to teachers who serve as 2 mentors to teachers who have less than two (2) years of service. The 3 supplemental awards are in addition to the award made from the part 4 of the grant that is allocated to all eligible teachers. as of April 15. 5 (i) The lead school corporation or interlocal cooperative 6 administering a cooperative or other special education program or 7 administering a career and technical education program, including 8 programs managed under IC 20-26-10, IC 20-35-5, IC 20-37, or 9 IC 36-1-7, shall award teacher appreciation incentivization grant 10 stipends to and carry out the other responsibilities of an employing 11 school corporation under this section for the teachers in the special 12 education program or career and technical education program. 13 (j) A school shall distribute all stipends from a teacher appreciation 14 incentivization grant to individual teachers within twenty (20) sixty 15 (60) business days of the date the department distributes the teacher 16 appreciation incentivization grant to the school. Any part of the 17 teacher appreciation incentivization grant not distributed as stipends 18 to teachers before February must be returned to the department on the 19 earlier of the date set by the department or June 30 of that state fiscal 20 year. 21 (k) The department, after review by the budget committee, may 22 waive the December 5 deadline under subsection (f) to distribute an 23 annual teacher appreciation grant to the school under this section for 24 that state fiscal year and approve an extension of that deadline to a later 25 date within that state fiscal year, if the department determines that a 26 waiver and extension of the deadline are in the public interest. 27 (l) The state board may adopt rules under IC 4-22-2 as necessary to 28 implement this section. 29 (m) (k) This section expires June 30, 2025. 2027. 30 SECTION 14. IC 34-30-2.1-287.3 IS ADDED TO THE INDIANA 31 CODE AS A NEW SECTION TO READ AS FOLLOWS 32 [EFFECTIVE JULY 1, 2025]: Sec. 287.3. IC 20-38-4-7(d)(8) 33 (Concerning the members, officers, executive director, employees, 34 and representatives of the interstate teacher mobility compact 35 commission). 36 SECTION 15. An emergency is declared for this act. 2025 IN 146—LS 7471/DI 143