*SB0146.1* January 24, 2025 SENATE BILL No. 146 _____ DIGEST OF SB 146 (Updated January 22, 2025 4:04 pm - DI 143) Citations Affected: IC 20-19; IC 20-20; IC 20-26; IC 20-28; IC 20-29; IC 20-38; IC 20-43; IC 34-30. Synopsis: Teacher compensation. Requires the department of education to submit a report to the general assembly before November 1, 2025, that provides an analysis of the feasibility and cost of increasing school corporation employee health plan options. 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, Raatz January 13, 2025, read first time and referred to Committee on Education and Career Development. January 23, 2025, amended, reported favorably — Do Pass; reassigned to Committee on Appropriations. SB 146—LS 7471/DI 143 January 24, 2025 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 20-19-3-38 IS ADDED TO THE INDIANA CODE 2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 3 1, 2025]: Sec. 38. (a) As used in this section: 4 (1) "school health plan" refers to a school employee health 5 plan offered under IC 20-26-17; and 6 (2) "state health plan" refers to a state employee health plan 7 offered under IC 5-10-8-6.7. 8 (b) Before November 1, 2025, the department shall prepare and 9 submit a report to the general assembly in an electronic format 10 under IC 5-14-6 that provides an analysis of the feasibility and cost 11 of increasing school corporation employee health plan options. 12 (c) The report described in subsection (b) must include the 13 following: 14 (1) An analysis of the feasibility and cost of allowing a school 15 corporation employee to elect to participate in a state health 16 plan if the state health plan is less expensive than the school 17 health plan offered by the employee's school corporation. SB 146—LS 7471/DI 143 2 1 (2) An analysis of the feasibility and cost of allowing a school 2 corporation employee who elects, as described in subdivision 3 (1), to participate in a less expensive state health plan to apply 4 the difference between the amount of the school health plan 5 offered by the employee's school corporation and the amount 6 of the state health plan to: 7 (A) the employee's defined contribution account, if the 8 employee maintains a defined contribution account; or 9 (B) the employee's annual salary. 10 (d) This section expires July 1, 2026. 11 SECTION 2. IC 20-20-50 IS ADDED TO THE INDIANA CODE 12 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 13 JULY 1, 2025]: 14 Chapter 50. Indiana Teacher Recruitment Program 15 Sec. 1. As used in this chapter, "fund" refers to the Indiana 16 teacher recruitment program fund established by section 4 of this 17 chapter. 18 Sec. 2. As used in this chapter, "program" refers to the Indiana 19 teacher recruitment program established by section 3 of this 20 chapter. 21 Sec. 3. (a) The Indiana teacher recruitment program is 22 established. The purpose of the program is to provide grants to 23 training and recruitment programs for teachers in critical shortage 24 areas, as determined by the department, based on data contained 25 in the educator supply and demand marketplace maintained on the 26 department's website. 27 (b) The department shall administer the program. 28 Sec. 4. (a) The Indiana teacher recruitment program fund is 29 established for the purposes of implementing the program 30 described in section 3 of this chapter. 31 (b) The fund consists of the following: 32 (1) Appropriations from the general assembly. 33 (2) Gifts to the fund. 34 (3) Grants, including grants from private entities. 35 (4) Any federal grants received to supplement the fund. 36 (c) The department shall administer the fund. 37 Sec. 5. The department shall do the following: 38 (1) Create an application and approval process for training 39 and recruitment programs. 40 (2) Determine guidelines for awarding grants under the 41 program. 42 SECTION 3. IC 20-26-22 IS ADDED TO THE INDIANA CODE SB 146—LS 7471/DI 143 3 1 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 2 JULY 1, 2025]: 3 Chapter 22. Parental Leave for Teachers 4 Sec. 1. As used in this chapter, "employee" means a teacher who 5 is employed by a school corporation. 6 Sec. 2. As used in this chapter, "stillbirth" means a birth after 7 twenty (20) weeks of gestation that is not a live birth. 8 Sec. 3. (a) A full-time employee who has been employed by a 9 school corporation for at least six (6) consecutive months shall be 10 granted not less than twenty (20) days of paid leave upon any of the 11 following events: 12 (1) The birth of the employee's child. 13 (2) The birth of a child to the employee's spouse. 14 (3) The placement of a child for adoption with the employee. 15 (4) The stillbirth of the employee's child. 16 (b) A part-time employee who has been employed by a school 17 corporation for at least six (6) consecutive months shall be granted 18 not less than ten (10) days of paid leave upon any of the following 19 events: 20 (1) The birth of the employee's child. 21 (2) The birth of a child to the employee's spouse. 22 (3) The placement of a child for adoption with the employee. 23 (4) The stillbirth of the employee's child. 24 (c) Any leave to which an employee is entitled under subsection 25 (a) or (b) that is not taken: 26 (1) less than six (6) months after the birth, placement for 27 adoption, or stillbirth; or 28 (2) before the employee's separation from employment with 29 the school corporation; 30 whichever is earlier, is forfeited. 31 Sec. 4. (a) A school corporation shall compensate an employee 32 granted leave under this chapter at the employee's regular rate of 33 pay for the regular work days during which the employee is absent 34 from work. 35 (b) A leave of absence granted to an employee under this 36 chapter is in addition to vacation days, sick days, personal days, 37 and compensatory time that the employee accrues. 38 (c) If an employee is eligible for leave under the federal Family 39 Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.), the leave 40 provided by this chapter runs concurrently with the amount of 41 leave available under the federal Family Medical Leave Act of 1993 42 (29 U.S.C. 2601 et seq.). SB 146—LS 7471/DI 143 4 1 (d) An employee's service shall be considered uninterrupted by 2 a leave of absence under this chapter for purposes of determining 3 the following: 4 (1) Seniority. 5 (2) Salary or salary advancement. 6 (3) Performance awards. 7 (4) The receipt of a benefit that may be affected by a leave of 8 absence. 9 SECTION 4. IC 20-28-3-1, AS AMENDED BY P.L.150-2024, 10 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 11 JULY 1, 2025]: Sec. 1. (a) As used in this section, "teacher candidate" 12 means an individual recommended for an initial teaching license from 13 a teacher preparation program located in Indiana. 14 (b) As used in this section, "teacher preparation program" includes, 15 but is not limited to, the following: 16 (1) A teacher education school or department. 17 (2) A transition to teaching program under IC 20-28-4. 18 (3) Any other entity approved by the department to offer a course 19 of study leading to an initial teaching license. 20 (c) The department shall: 21 (1) arrange a statewide system of professional instruction for 22 teacher education; 23 (2) accredit and review teacher preparation programs that comply 24 with the rules of the department; 25 (3) approve content area licensure programs for particular kinds 26 of teachers in accredited teacher preparation programs; and 27 (4) specify the types of licenses for individuals who complete 28 programs of approved courses. 29 (d) The department shall work with teacher preparation programs to 30 develop a system of teacher education that ensures individuals who 31 complete teacher preparation programs are able to meet the highest 32 professional standards. 33 (e) Before July 1, 2015, the department shall establish standards for 34 the continuous improvement of program processes and the performance 35 of individuals who complete teacher preparation programs. The state 36 board shall adopt rules containing the standards not later than two 37 hundred seventy (270) days after the department finishes the standards. 38 (f) The standards established under subsection (e) must include 39 benchmarks for performance, including test score data for each teacher 40 preparation entity on content area licensure tests and test score data for 41 each teacher preparation entity on pedagogy licensure tests. 42 (g) Each teacher preparation program shall annually report the SB 146—LS 7471/DI 143 5 1 program's performance on the standards and benchmarks established 2 under this section to the department. The department shall make the 3 information reported under this subsection available to the public on 4 the department's website. Each teacher preparation program shall make 5 the information reported under this subsection available to the public 6 on the teacher preparation program's website. In addition to reporting 7 performance, each teacher preparation program must report to the 8 department the following: 9 (1) The attrition, retention, and completion rates of teacher 10 candidates for the previous three (3) calendar years. The teacher 11 preparation program must also provide underlying data, as 12 determined by the department, used as part of calculating the 13 teacher preparation program's retention rates. 14 (2) The number of teacher candidates in each content area who 15 complete the teacher preparation program during the year, 16 disaggregated by ranges of cumulative grade point averages. 17 (3) The number of teacher candidates in each content area who, 18 during the year: 19 (A) do not pass a content area licensure examination; and 20 (B) do not retake the content area licensure examination. 21 (h) In making information available to the public on the 22 department's website, the department shall include in the report under 23 subsection (g), in addition to the matrix ratings described in subsection 24 (i), the following information: 25 (1) Average scaled or standard scores of teacher candidates who 26 complete teacher preparation programs on basic skills, content 27 area, and pedagogy licensure examinations. 28 (2) The average number of times teacher candidates who 29 complete a teacher preparation program take each licensing test 30 before receiving a passing score and the percentage of teacher 31 candidates who receive a passing score on each licensing test on 32 the teacher candidates' first attempts. 33 (i) Not later than July 30, 2016, the department and the commission 34 for higher education, in conjunction with the state board, the 35 Independent Colleges of Indiana, Inc., and teacher preparation 36 programs, shall establish a matrix rating system for teacher preparation 37 programs based on the performance of the programs as demonstrated 38 by the data collected under subsections (g) and (h). The matrix rating 39 system may not rank or compare teacher preparation programs. The 40 matrix rating system must be based on data collected for teachers who 41 initially receive their teaching license during the previous three (3) 42 years. The department shall make the matrix ratings available to the SB 146—LS 7471/DI 143 6 1 public on the department's website. 2 (j) Each teacher preparation program shall report to the department, 3 in a manner prescribed by the department, the teacher preparation 4 program's admission practices, in accordance with: 5 (1) the Council for the Accreditation of Educator Preparation 6 standards, for teacher preparation programs accredited by the 7 Council for the Accreditation of Educator Preparation; 8 (2) rigorous academic entry requirements for admission into a 9 teacher preparatory program that are equivalent to the minimum 10 academic requirements determined by the Council for the 11 Accreditation of Educator Preparation, for teacher preparation 12 programs that are not accredited by the Council for the 13 Accreditation of Educator Preparation; or 14 (3) the Association for Advancing Quality in Educator 15 Preparation standards, for teacher preparation programs 16 accredited by the Association for Advancing Quality in Educator 17 Preparation. 18 The department shall include information reported to the department 19 on the department's website. 20 (k) Not later than July 30, 2016, the department and the commission 21 for higher education, in conjunction with the state board, the 22 Independent Colleges of Indiana, Inc., and teacher preparation 23 programs, shall establish a minimum rating under the matrix rating 24 system established under subsection (i) that teacher preparation 25 programs must achieve to avoid referral under subsection (l). 26 (l) Not later than July 1 of each year, the department shall submit a 27 list of teacher preparation programs that do not meet the minimum 28 rating established under subsection (k) or the requirements of section 29 3.1 of this chapter to the commission for higher education and the 30 Independent Colleges of Indiana, Inc. for one (1) of the following 31 actions: 32 (1) In the case of a state educational institution, the commission 33 for higher education shall place the teacher preparation program 34 on an improvement plan with clear performance goals and a 35 designated period in which the performance goals must be 36 achieved. 37 (2) In the case of a proprietary postsecondary educational 38 institution, the commission for higher education shall recommend 39 to the teacher preparation program an improvement plan with 40 clear performance goals and a designated period in which the 41 performance goals should be achieved. 42 (3) In the case of a nonprofit college or university, the SB 146—LS 7471/DI 143 7 1 Independent Colleges of Indiana, Inc., shall coordinate a peer 2 review process to make recommendations to the peer institution 3 in achieving the department's performance metrics. 4 (m) The department shall approve at least two (2) accreditors that: 5 (1) accredit teacher preparation programs; and 6 (2) are recognized by the Council for Higher Education 7 Accreditation; 8 to accredit teacher preparation programs for use in Indiana. 9 (n) Not later than December 31, 2024, the department and the 10 commission for higher education, in conjunction with the state board, 11 shall partner with teacher preparation programs to receive an outside 12 evaluation by a nationally recognized nonprofit, nonpartisan 13 organization that leverages evidence based approaches on the science 14 of reading to evaluate teacher preparation reading instruction programs. 15 SECTION 5. IC 20-28-9-26, AS ADDED BY P.L.165-2021, 16 SECTION 154, IS AMENDED TO READ AS FOLLOWS 17 [EFFECTIVE JULY 1, 2025]: Sec. 26. (a) For each school year 18 beginning after June 30, 2022, June 30, 2025, if a school corporation 19 determines that the school corporation cannot establish a minimum 20 salary of forty forty-five thousand dollars ($40,000) ($45,000) for each 21 full-time teacher, the school corporation shall submit a report to the 22 department explaining the school corporation's inability to meet the 23 minimum threshold requirement. 24 (b) A report submitted under this section must include an 25 explanation of the financial challenges, with detailed data, that 26 preclude the school corporation from meeting the minimum salary 27 threshold required under subsection (a). The report must also describe 28 the cost saving measures taken by the school corporation in attempting 29 to meet the minimum salary threshold required under subsection (a). 30 SECTION 6. IC 20-28-9-27, AS AMENDED BY P.L.150-2024, 31 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 32 JUNE 29, 2025]: Sec. 27. (a) As used in this section, "funding floor" 33 means the amount a school corporation expended for full-time teacher 34 salaries during a particular state fiscal year. 35 (b) Subject to subsections (d) and (e), if the amount of state tuition 36 support distributed to a school corporation for a particular state fiscal 37 year is greater than the amount of state tuition support distributed to the 38 school corporation for the preceding state fiscal year, the school 39 corporation may not expend an amount for full-time teacher salaries 40 during the particular state fiscal year that is less than the funding floor 41 for the preceding state fiscal year. 42 (c) For purposes of this section, the amount a school corporation SB 146—LS 7471/DI 143 8 1 expends for full-time teacher salaries shall include the amount the 2 school corporation expends for participating in a special education 3 cooperative or a career and technical education cooperative that is 4 directly attributable to the salaries of full-time teachers employed by 5 the cooperative, as determined by the department. 6 (d) For purposes of this subsection, stipends paid using teacher 7 appreciation incentivization grants under IC 20-43-10-3.5 are not 8 considered. If a school corporation has awarded stipends to a majority 9 of the school corporation's teachers in each of the two (2) preceding 10 consecutive state fiscal years, an amount equal to the lesser of the total 11 amount of stipends awarded in each of those state fiscal years shall be 12 added to the school corporation's funding floor for the preceding state 13 fiscal year described under subsection (b). 14 (e) Beginning after June 30, 2024, for each state fiscal year that a 15 school corporation fails to meet the expenditure requirements regarding 16 full-time teacher salaries under subsection (b), the department shall 17 submit in both a written and an electronic format a notice to the school 18 corporation's: 19 (1) superintendent; 20 (2) school business officer; and 21 (3) governing body; 22 that the school corporation failed to meet the requirements set forth in 23 subsection (b) for the applicable state fiscal year. 24 (f) If a school corporation's governing body receives a notice from 25 the department under subsection (e), the school corporation shall do the 26 following: 27 (1) Publicly acknowledge receipt of the notice from the 28 department at the governing body's next public meeting. 29 (2) Enter into the governing body's official minutes for the 30 meeting described in subdivision (1) acknowledgment of the 31 notice. 32 (3) Not later than thirty (30) days after the meeting described in 33 subdivision (1), publish on the school corporation's website: 34 (A) the department's notice; and 35 (B) any relevant individual reports prepared by the 36 department. 37 (g) If the department determines a school corporation that received 38 one (1) or more notices from the department under subsection (e) has 39 met the expenditure requirements required under subsection (b) for a 40 subsequent state fiscal year, the school corporation may remove from 41 the school corporation's website any: 42 (1) notices the school corporation received under subsection (e); SB 146—LS 7471/DI 143 9 1 and 2 (2) relevant individual reports prepared by the department under 3 subsection (f)(3). 4 SECTION 7. IC 20-28-9-28, AS AMENDED BY P.L.150-2024, 5 SECTION 26, AND AS AMENDED BY P.L.136-2024, SECTION 43, 6 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL 7 OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND 8 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: 9 Sec. 28. (a) Subject to subsection (g), (c), for each school year in a state 10 fiscal year beginning after June 30, 2023, June 30, 2025, a school 11 corporation shall expend an amount for teacher compensation that is 12 not less than an amount equal to sixty-two percent (62%) sixty-five 13 percent (65%) of the state tuition support, other than the state tuition 14 support described in subsection (b), distributed to the school 15 corporation during the state fiscal year. For purposes of determining 16 whether a school corporation has complied with this requirement, the 17 amount a school corporation expends for teacher compensation shall 18 include the amount the school corporation expends for adjunct 19 teachers, supplemental pay for teachers, stipends, and for participating 20 in a special education cooperative or an interlocal agreement or 21 consortium that is directly attributable to the compensation of teachers 22 employed by the cooperative or interlocal agreement or consortium. 23 The amount a school corporation expends on teacher compensation 24 shall also include the amount the school corporation expends on 25 dropout recovery educational services for an at-risk student enrolled 26 in the school corporation provided by an agreement with an eligible 27 school that is directly attributable to the compensation of teachers 28 employed by the eligible school. Teacher benefits include all benefit 29 categories collected by the department for Form 9 purposes. 30 (b) If a school corporation determines that the school corporation 31 cannot comply with the requirement under subsection (a) for a 32 particular school year, the school corporation shall apply for a waiver 33 from the department. 34 (c) The waiver application must include an explanation of the 35 financial challenges, with detailed data, that preclude the school 36 corporation from meeting the requirement under subsection (a) and 37 describe the cost saving measures taken by the school corporation in 38 attempting to meet the requirement in subsection (a). The waiver may 39 also include an explanation of an innovative or efficient approach in 40 delivering instruction that is responsible for the school corporation 41 being unable to meet the requirement under subsection (a). 42 (d) If, after review, the department determines that the school SB 146—LS 7471/DI 143 10 1 corporation has exhausted all reasonable efforts in attempting to meet 2 the requirement in subsection (a), the department may grant the school 3 corporation a one (1) year exception from the requirement. 4 (e) A school corporation that receives a waiver under this section 5 shall work with the department to develop a plan to identify additional 6 cost saving measures and any other steps that may be taken to allow 7 the school corporation to meet the requirement under subsection (a). 8 (f) A school corporation may not receive more than three (3) 9 waivers under this section. 10 (b) State tuition support distributed to a school corporation for 11 students enrolled in the school corporation who are receiving one 12 hundred percent (100%) virtual instruction from a teacher employed 13 by a third party provider with whom the school corporation has 14 contracted is not included as state tuition support distributed to the 15 school corporation for purposes of subsection (a). 16 (g) (c) For purposes of determining whether a school corporation 17 has complied with the requirement in subsection (a), distributions from 18 the curricular materials fund established by IC 20-40-22-5 that are 19 deposited in a school corporation's education fund in a state fiscal 20 year are not considered to be state tuition support distributed to the 21 school corporation during the state fiscal year. 22 (c) (h) (d) Before November 1, 2022, and before November 1 of 23 each year thereafter, the department shall submit a report to the 24 legislative council in an electronic format under IC 5-14-6 and the state 25 budget committee that contains information as to: 26 (1) the percent and amount that each school corporation expended 27 and the statewide total expended for teacher compensation; 28 (2) the percent and amount that each school corporation expended 29 and statewide total expended for teacher benefits, including 30 health, dental, life insurance, and pension benefits; and 31 (3) whether the school corporation met the requirement set forth 32 in subsection (a). and 33 (4) whether the school corporation received a waiver under 34 subsection (d). 35 (d) (e) The department shall publish the report described in 36 subsection (c) (d) on the department's website. 37 (e) (f) Beginning after June 30, 2024, for each state fiscal year that 38 a school corporation fails to expend the amount for teacher 39 compensation as required under subsection (a), the department shall 40 submit in both a written and an electronic format a notice to the school 41 corporation's: 42 (1) superintendent; SB 146—LS 7471/DI 143 11 1 (2) school business officer; and 2 (3) governing body; 3 that the school corporation failed to meet the requirements set forth in 4 subsection (a) for the applicable state fiscal year. 5 (f) (g) If a school corporation's governing body receives a notice 6 from the department under subsection (e), (f), the school corporation 7 shall do the following: 8 (1) Publicly acknowledge receipt of the notice from the 9 department at the governing body's next public meeting. 10 (2) Enter into the governing body's official minutes for the 11 meeting described in subdivision (1) acknowledgment of the 12 notice. 13 (3) Not later than thirty (30) days after the meeting described in 14 subdivision (1), publish on the school corporation's website: 15 (A) the department's notice; and 16 (B) any relevant individual reports prepared by the 17 department. 18 (g) (h) If the department determines a school corporation that 19 received one (1) or more notices from the department under subsection 20 (e) (f) has met the expenditure requirements required under subsection 21 (a) for a subsequent state fiscal year, the school corporation may 22 remove from the school corporation's website any: 23 (1) notices the school corporation received under subsection (e); 24 (f); and 25 (2) relevant individual reports prepared by the department under 26 subsection (f)(3). (g)(3). 27 SECTION 8. IC 20-29-6-16, AS AMENDED BY P.L.217-2017, 28 SECTION 104, IS AMENDED TO READ AS FOLLOWS 29 [EFFECTIVE JUNE 29, 2025]: Sec. 16. (a) If an agreement has not 30 been reached on the items to be bargained collectively by November 1, 31 as provided in IC 6-1.1-17-5, the parties shall continue the terms of the 32 current contract that is in effect, and the school employer may issue 33 tentative individual contracts and prepare its budget on that basis. 34 During this period, in order to allow the successful resolution of the 35 dispute, the school employer may not unilaterally change the terms or 36 conditions of employment that are issues in dispute. 37 (b) Upon the expiration of the current contract that is in effect, 38 except for teacher appreciation incentivization grant stipends and 39 additions to base salary provided under IC 20-43-10-3.5, the school 40 employer shall continue under the terms of the current contract that is 41 in effect, with no increase or increment in salary, wages, or benefits for 42 any bargaining unit employee until a new contract is executed. SB 146—LS 7471/DI 143 12 1 (c) The only parts of the contract that must continue under this 2 section are the items contained in the contract and listed in section 4 of 3 this chapter. 4 (d) This section may not be construed as relieving the school 5 employer or the school employee organization from the duty to bargain 6 collectively until a mutual agreement has been reached and a contract 7 entered as called for in this chapter. 8 SECTION 9. IC 20-38-4 IS ADDED TO THE INDIANA CODE AS 9 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 10 1, 2025]: 11 Chapter 4. Interstate Teacher Mobility Compact 12 Sec. 0.5. The following interstate teacher mobility compact 13 agreement is enacted into law and entered into by this state with all 14 other states legally joining the interstate agreement in substantially 15 the following form. 16 Sec. 1. Article I, purpose. The purpose of this compact is to 17 facilitate the mobility of teachers across the member states, with 18 the goal of supporting teachers through a new pathway to 19 licensure. Through this compact, the member states seek to 20 establish a collective regulatory framework that expedites and 21 enhances the ability of teachers to move across state lines. This 22 compact is intended to achieve the following objectives and should 23 be interpreted accordingly. The member states hereby ratify the 24 same intentions by subscribing to: 25 (1) Create a streamlined pathway to licensure mobility for 26 teachers. 27 (2) Support the relocation of eligible military spouses. 28 (3) Facilitate and enhance the exchange of licensure, 29 investigative, and disciplinary information between member 30 states. 31 (4) Enhance the power of state and district level education 32 officials to hire qualified, competent teachers by removing 33 barriers to the employment of out-of-state teachers. 34 (5) Support the retention of teachers in the profession by 35 removing barriers to relicensure in a new state. 36 (6) Maintain state sovereignty in the regulation of the 37 teaching profession. 38 Sec. 2. Article II, definitions. As used in this compact, and except 39 as otherwise provided, the following definitions shall govern the 40 terms herein: 41 (1) "Active military member" means any person with 42 full-time duty status in the armed forces of the United States, SB 146—LS 7471/DI 143 13 1 including members of the National Guard and Reserve. 2 (2) "Adverse action" means any limitation or restriction 3 imposed by a member state's licensing authority, such as 4 revocation, suspension, reprimand, probation, or limitation on 5 the licensee's ability to work as a teacher. 6 (3) "Bylaws" means those bylaws established by the 7 commission. 8 (4) "Career and technical education license" means a current, 9 valid authorization issued by a member state's licensing 10 authority allowing an individual to serve as a teacher in P-12 11 public educational settings in a specific career and technical 12 education area. 13 (5) "Charter member states" means a member state that has 14 enacted legislation to adopt this compact where such 15 legislation predates the initial meeting of the commission after 16 the effective date of the compact. 17 (6) "Commission" means the interstate administrative body 18 which membership consists of delegates of all states that have 19 enacted this compact, and which is known as the interstate 20 teacher mobility compact commission. 21 (7) "Commissioner" means the delegate of a member state. 22 (8) "Eligible license" means a license to engage in the teaching 23 profession which requires at least a bachelor's degree and the 24 completion of a state approved program for teacher licensure. 25 (9) "Eligible military spouse" means the spouse of any 26 individual in full-time duty status in the active armed forces 27 of the United States including members of the National Guard 28 and Reserve moving as a result of a military mission or 29 military career progression requirements or are on their 30 terminal move as a result of separation or retirement (to 31 include surviving spouses of deceased military members). 32 (10) "Executive committee" means a group of commissioners 33 elected or appointed to act on behalf of, and within the powers 34 granted to them by, the commission as provided for herein. 35 (11) "Licensing authority" means an official, agency, board, 36 or other entity of a state that is responsible for the licensing 37 and regulation of teachers authorized to teach in P-12 public 38 educational settings. 39 (12) "Member state" means any state that has adopted this 40 compact, including all agencies and officials of such a state. 41 (13) "Receiving state" means any state where a teacher has 42 applied for licensure under this compact. SB 146—LS 7471/DI 143 14 1 (14) "Rule" means any regulation promulgated by the 2 commission under this compact, which shall have the force of 3 law in each member state. 4 (15) "State" means a state, territory, or possession of the 5 United States, and the District of Columbia. 6 (16) "State practice laws" means a member state's laws, rules, 7 and regulations that govern the teaching profession, define the 8 scope of such profession, and create the methods and grounds 9 for imposing discipline. 10 (17) "State specific requirements" means a requirement for 11 licensure covered in coursework or examination that includes 12 content of unique interest to the state. 13 (18) "Teacher" means an individual who currently holds an 14 authorization from a member state that forms the basis for 15 employment in the P-12 public schools of the state to provide 16 instruction in a specific subject area, grade level, or student 17 population. 18 (19) "Unencumbered license" means a current, valid 19 authorization issued by a member state's licensing authority 20 allowing an individual to serve as a teacher in P-12 public 21 educational settings. A unencumbered license is not a 22 restricted, probationary, provisional, substitute, or temporary 23 credential. 24 Sec. 3. Article III, licensure under the compact. 25 (1) Licensure under this compact pertains only to the initial 26 grant of a license by the receiving state. Nothing herein 27 applies to any subsequent or ongoing compliance 28 requirements that a receiving state might require for 29 teachers. 30 (2) Each member state shall, in accordance with the rules of 31 the commission, define, compile, and update as necessary, a 32 list of eligible licenses and career and technical education 33 licenses that the member state is willing to consider for 34 equivalency under this compact and provide the list to the 35 commission. The list shall include those licenses that a 36 receiving state is willing to grant to teachers from other 37 member states, pending a determination of equivalency by the 38 receiving state's licensing authority. 39 (3) Upon the receipt of an application for licensure by a 40 teacher holding an unencumbered eligible license, the 41 receiving state shall determine which of the receiving state's 42 eligible licenses the teacher is qualified to hold and shall grant SB 146—LS 7471/DI 143 15 1 such a license or licenses to the applicant. Such a 2 determination shall be made in the sole discretion of the 3 receiving state's licensing authority and may include a 4 determination that the applicant is not eligible for any of the 5 receiving state's eligible licenses. For all teachers who hold an 6 unencumbered license, the receiving state shall grant one (1) 7 or more unencumbered license(s) that, in the receiving state's 8 sole discretion, are equivalent to the license(s) held by the 9 teacher in any other member state. 10 (4) For active military members and eligible military spouses 11 who hold a license that is not unencumbered, the receiving 12 state shall grant an equivalent license or licenses that, in the 13 receiving state's sole discretion, is equivalent to the license or 14 licenses held by the teacher in any other member state, except 15 where the receiving state does not have an equivalent license. 16 (5) For a teacher holding an unencumbered career and 17 technical education license, the receiving state shall grant an 18 unencumbered license equivalent to the career and technical 19 education license held by the applying teacher and issued by 20 another member state, as determined by the receiving state in 21 its sole discretion, except where a career and technical 22 education teacher does not hold a bachelor's degree and the 23 receiving state requires a bachelor's degree for licenses to 24 teach career and technical education. A receiving state may 25 require career and technical education teachers to meet state 26 industry recognized requirements, if required by law in the 27 receiving state. 28 Sec. 4. Article IV, licensure not under the compact. 29 (1) Except as provided in Article III above, nothing in this 30 compact shall be construed to limit or inhibit the power of a 31 member state to regulate licensure or endorsements overseen 32 by the member state's licensing authority. 33 (2) When a teacher is required to renew a license received 34 pursuant to this compact, the state granting such a license 35 may require the teacher to complete state specific 36 requirements as a condition of licensure renewal or 37 advancement in that state. 38 (3) For the purposes of determining compensation, a receiving 39 state may require additional information from teachers 40 receiving a license under the provisions of this compact. 41 (4) Nothing in this compact shall be construed to limit the 42 power of a member state to control and maintain ownership SB 146—LS 7471/DI 143 16 1 of its information pertaining to teachers, or limit the 2 application of a member state's laws or regulations governing 3 the ownership, use, or dissemination of information 4 pertaining to teachers. 5 (5) Nothing in this compact shall be construed to invalidate or 6 alter any existing agreement or other cooperative 7 arrangement which a member state may already be a party 8 to, or limit the ability of a member state to participate in any 9 future agreement or other cooperative arrangement to: 10 (A) award teaching licenses or other benefits based on 11 additional professional credentials, including, but not 12 limited to national board certification; 13 (B) participate in the exchange of names of teachers whose 14 license has been subject to an adverse action by a member 15 state; or 16 (C) participate in any agreement or cooperative 17 arrangement with a non-member state. 18 Sec. 5. Article V, teacher qualifications and requirements for 19 licensure under the compact. 20 (1) Except as provided for active military members or eligible 21 military spouses in Article III above, a teacher may only be 22 eligible to receive a license under this compact where that 23 teacher holds an unencumbered license in a member state. 24 (2) A teacher eligible to receive a license under this compact 25 shall, unless otherwise provided for herein: 26 (A) upon their application to receive a license under this 27 compact, undergo a criminal background check in the 28 receiving state in accordance with the laws and regulations 29 of the receiving state; and 30 (B) provide the receiving state with information in addition 31 to the information required for licensure for the purposes 32 of determining compensation, if applicable. 33 Sec. 6. Article VI, discipline and adverse actions. 34 (1) Nothing in this compact shall be deemed or construed to 35 limit the authority of a member state to investigate or impose 36 disciplinary measures on teachers according to the state 37 practice laws thereof. 38 (2) Member states shall be authorized to receive, and shall 39 provide, files and information regarding the investigation and 40 discipline, if any, of teachers in other member states upon 41 request. Any member state receiving such information or files 42 shall protect and maintain the security and confidentiality SB 146—LS 7471/DI 143 17 1 thereof, in at least the same manner that it maintains its own 2 investigatory or disciplinary files and information. Prior to 3 disclosing any disciplinary or investigatory information 4 received from another member state, the disclosing state shall 5 communicate its intention and purpose for such disclosure to 6 the member state which originally provided that information. 7 Sec. 7. (a) Article VII, establishment of the interstate teacher 8 mobility compact commission. 9 (1) The interstate compact member states hereby create and 10 establish a joint public agency known as the interstate teacher 11 mobility compact commission: 12 (A) The commission is a joint interstate governmental 13 agency comprised of states that have enacted the interstate 14 teacher mobility compact. 15 (B) Nothing in this interstate compact shall be construed to 16 be a waiver of sovereign immunity. 17 (b) Membership, voting, and meetings. 18 (1) Each member state shall have and be limited to one (1) 19 delegate to the commission, who shall be given the title of 20 commissioner. 21 (2) The commissioner shall be the primary administrative 22 officer of the state licensing authority or their designee. 23 (3) Any commissioner may be removed or suspended from 24 office as provided by the law of the state from which the 25 commissioner is appointed. 26 (4) The member state shall fill any vacancy occurring in the 27 commission within ninety (90) days. 28 (5) Each commissioner shall be entitled to one (1) vote about 29 the promulgation of rules and creation of bylaws and shall 30 otherwise have an opportunity to participate in the business 31 and affairs of the commission. A commissioner shall vote in 32 person or by such other means as provided in the bylaws. The 33 bylaws may provide for commissioners' participation in 34 meetings by telephone or other means of communication. 35 (6) The commission shall meet at least once during each 36 calendar year. Additional meetings shall be held as set forth 37 in the bylaws. 38 (7) The commission shall establish by rule a term of office for 39 commissioners. 40 (c) The commission shall have the following powers and duties: 41 (1) Establish the code of ethics for the commission. 42 (2) Establish the fiscal year of the commission. SB 146—LS 7471/DI 143 18 1 (3) Establish bylaws for the commission. 2 (4) Maintain its financial records in accordance with the 3 bylaws of the commission. 4 (5) Meet and take such actions as are consistent with the 5 provisions of this interstate compact, the bylaws, and rules of 6 the commission. 7 (6) Promulgate uniform rules to implement and administer 8 this interstate compact. The rules shall have the force and 9 effect of law and shall be binding in all member states. In the 10 event the commission exercises its rulemaking authority in a 11 manner that is beyond the scope of the purposes of the 12 compact, or the powers granted hereunder, then such an 13 action by the commission shall be invalid and have no force 14 and effect of law. 15 (7) Bring and prosecute legal proceedings or actions in the 16 name of the commission, provided that the standing of any 17 member state licensing authority to sue or be sued under 18 applicable law shall not be affected. 19 (8) Purchase and maintain insurance and bonds. 20 (9) Borrow, accept, or contract for services of personnel, 21 including, but not limited to, employees of a member state, or 22 an associated nongovernmental organization that is open to 23 membership by all states. 24 (10) Hire employees, elect or appoint officers, fix 25 compensation, define duties, grant such individuals 26 appropriate authority to carry out the purposes of the 27 compact, and establish the commission's personnel policies 28 and programs relating to conflicts of interest, qualifications 29 of personnel, and other related personnel matters. 30 (11) Lease, purchase, accept appropriate gifts or donations of, 31 or otherwise own, hold, improve, or use, any property, real, 32 personal, or mixed, provided that at all times the commission 33 shall avoid any appearance of impropriety. 34 (12) Sell, convey, mortgage, pledge, lease, exchange, abandon, 35 or otherwise dispose of any property real, personal, or mixed. 36 (13) Establish a budget and make expenditures. 37 (14) Borrow money. 38 (15) Appoint committees, including standing committees 39 composed of members and such other interested persons as 40 may be designated in this interstate compact, rules, or bylaws. 41 (16) Provide and receive information from, and cooperate 42 with, law enforcement agencies. SB 146—LS 7471/DI 143 19 1 (17) Establish and elect an executive committee. 2 (18) Establish and develop a charter for an executive 3 information governance committee to advise on facilitating 4 exchange of information; use of information, data privacy, 5 and technical support needs, and provide reports as needed. 6 (19) Perform such other functions as may be necessary or 7 appropriate to achieve the purposes of this interstate compact 8 consistent with the state regulation of teacher licensure. 9 (20) Determine whether a state's adopted language is 10 materially different from the model compact language such 11 that the state would not qualify for participation in the 12 compact. 13 (d) The executive committee of the interstate teacher mobility 14 compact commission. 15 (1) The executive committee shall have the power to act on 16 behalf of the commission according to the terms of this 17 interstate compact. 18 (2) The executive committee shall be composed of the 19 following eight (8) voting members: 20 (A) the commission chair, vice chair, and treasurer; and 21 (B) five (5) members who are elected by the commission 22 from the current membership as follows: 23 (i) four (4) voting members representing geographic 24 regions in accordance with commission rules; and 25 (ii) one (1) at large voting member in accordance with 26 commission rules. 27 (3) The commission may add or remove members of the 28 executive committee as provided in commission rules. 29 (4) The executive committee shall meet at least once annually. 30 (5) The executive committee shall have the following duties 31 and responsibilities: 32 (A) Recommend to the entire commission changes to the 33 rules or bylaws, changes to the compact legislation, fees 34 paid by interstate compact member states such as annual 35 dues, and any compact fee charged by the member states 36 on behalf of the commission. 37 (B) Ensure commission administration services are 38 appropriately provided, contractual or otherwise. 39 (C) Prepare and recommend the budget. 40 (D) Maintain financial records on behalf of the 41 commission. 42 (E) Monitor compliance of member states and provide SB 146—LS 7471/DI 143 20 1 reports to the commission. 2 (F) Perform other duties as provided in rules or bylaws. 3 (6) Meetings of the commission. 4 (A) All meetings shall be open to the public, and public 5 notice of meetings shall be given in accordance with 6 commission bylaws. 7 (B) The commission or the executive committee or other 8 committees of the commission may convene in a closed, 9 non-public meeting if the commission or executive 10 committee or other committees of the commission must 11 discuss: 12 (i) non-compliance of a member state with its obligations 13 under the compact; 14 (ii) the employment, compensation, discipline or other 15 matters, practices or procedures related to specific 16 employees, or other matters related to the commission's 17 internal personnel practices and procedures; 18 (iii) current, threatened, or reasonably anticipated 19 litigation; 20 (iv) negotiation of contracts for the purchase, lease, or 21 sale of goods, services, or real estate; 22 (v) accusing any person of a crime or formally censuring 23 any person; 24 (vi) disclosure of trade secrets or commercial or financial 25 information that is privileged or confidential; 26 (vii) disclosure of information of a personal nature 27 where disclosure would constitute a clearly unwarranted 28 invasion of personal privacy; 29 (viii) disclosure of investigative records compiled for law 30 enforcement purposes; 31 (ix) disclosure of information related to any investigative 32 reports prepared by or on behalf of or for use of the 33 commission or other committee charged with 34 responsibility of investigation or determination of 35 compliance issues pursuant to the compact; 36 (x) matters specifically exempted from disclosure by 37 federal or member state statute; or 38 (xi) others matters as set forth by commission bylaws 39 and rules. 40 (C) If a meeting, or portion of a meeting, is closed pursuant 41 to this provision, the commission's legal counsel or 42 designee shall certify that the meeting may be closed and SB 146—LS 7471/DI 143 21 1 shall reference each relevant exempting provision. 2 (D) The commission shall keep minutes of commission 3 meetings and shall provide a full and accurate summary of 4 actions taken, and the reasons therefore, including a 5 description of the views expressed. All documents 6 considered in connection with an action shall be identified 7 in such minutes. All minutes and documents of a closed 8 meeting shall remain under seal, subject to release by a 9 majority vote of the commission or order of a court of 10 competent jurisdiction. 11 (7) Financing of the commission. 12 (A) The commission shall pay, or provide for the payment 13 of, the reasonable expenses of its establishment, 14 organization, and ongoing activities. 15 (B) The commission may accept all appropriate donations 16 and grants of money, equipment, supplies, materials, and 17 services, and receive, utilize, and dispose of the same, 18 provided that at all times the commission shall avoid any 19 appearance of impropriety or conflict of interest. 20 (C) The commission may levy on and collect an annual 21 assessment from each member state or impose fees on 22 other parties to cover the cost of the operations and 23 activities of the commission, in accordance with the 24 commission rules. 25 (D) The commission shall not incur obligations of any kind 26 prior to securing the funds adequate to meet the same; nor 27 shall the commission pledge the credit of any of the 28 member states, except by and with the authority of the 29 member state. 30 (E) The commission shall keep accurate accounts of all 31 receipts and disbursements. The receipts and 32 disbursements of the commission shall be subject to 33 accounting procedures established under commission 34 bylaws. All receipts and disbursements of funds of the 35 commission shall be reviewed annually in accordance with 36 commission bylaws, and a report of the review shall be 37 included in and become part of the annual report of the 38 commission. 39 (8) Qualified immunity, defense, and indemnification. 40 (A) The members, officers, executive director, employees, 41 and representatives of the commission shall be immune 42 from suit and liability, either personally or in their official SB 146—LS 7471/DI 143 22 1 capacity, for any claim for damage to or loss of property or 2 personal injury or other civil liability caused by or arising 3 out of any actual or alleged act, error, or omission that 4 occurred, or that the person against whom the claim is 5 made had a reasonable basis for believing occurred within 6 the scope of commission employment, duties, or 7 responsibilities; provided that nothing in this paragraph 8 shall be construed to protect any such person from suit or 9 liability for any damage, loss, injury, or liability caused by 10 the intentional or willful or wanton misconduct of that 11 person. 12 (B) The commission shall defend any member, officer, 13 executive director, employee, or representative of the 14 commission in any civil action seeking to impose liability 15 arising out of any actual or alleged act, error, or omission 16 that occurred within the scope of commission employment, 17 duties, or responsibilities, or that the person against whom 18 the claim is made had a reasonable basis for believing 19 occurred within the scope of commission employment, 20 duties, or responsibilities; provided that nothing herein 21 shall be construed to prohibit that person from retaining 22 his or her own counsel; and provided further, that the 23 actual or alleged act, error, or omission did not result from 24 that person's intentional or willful or wanton misconduct. 25 (C) The commission shall indemnify and hold harmless any 26 member, officer, executive director, employee, or 27 representative of the commission for the amount of any 28 settlement or judgment obtained against that person 29 arising out of any actual or alleged act, error, or omission 30 that occurred within the scope of commission employment, 31 duties, or responsibilities, or that such person had a 32 reasonable basis for believing occurred within the scope of 33 commission employment, duties, or responsibilities, 34 provided that the actual or alleged act, error, or omission 35 did not result from the intentional or willful or wanton 36 misconduct of that person. 37 Sec. 8. Article VIII, rulemaking. 38 (1) The commission shall exercise its rulemaking powers 39 pursuant to the criteria set forth in this interstate compact 40 and the rules adopted thereunder. Rules and amendments 41 shall become binding as of the date specified in each rule or 42 amendment. SB 146—LS 7471/DI 143 23 1 (2) The commission shall promulgate reasonable rules to 2 achieve the intent and purpose of this interstate compact. In 3 the event the commission exercises its rulemaking authority 4 in a manner that is beyond purpose and intent of this 5 interstate compact, or the powers granted hereunder, then 6 such an action by the commission shall be invalid and have no 7 force and effect of law in the member states. 8 (3) If a majority of the legislatures of the member states 9 rejects a rule, by enactment of a statute or resolution in the 10 same manner used to adopt the compact within four (4) years 11 of the date of adoption of the rule, then such rule shall have no 12 further force and effect in any member state. 13 (4) Rules or amendments to the rules shall be adopted or 14 ratified at a regular or special meeting of the commission in 15 accordance with commission rules and bylaws. 16 (5) Upon determination that an emergency exists, the 17 commission may consider and adopt an emergency rule with 18 forty-eight (48) hours' notice, with opportunity to comment, 19 provided that the usual rulemaking procedures shall be 20 retroactively applied to the rule as soon as reasonably 21 possible, in no event later than ninety (90) days after the 22 effective date of the rule. For the purposes of this provision, 23 an emergency rule is one that must be adopted immediately in 24 order to do the following: 25 (A) Meet an imminent threat to public health, safety, or 26 welfare. 27 (B) Prevent a loss of commission or member state funds. 28 (C) Meet a deadline for the promulgation of an 29 administrative rule that is established by federal law or 30 rule. 31 (D) Protect public health and safety. 32 Sec. 9. Article IX, facilitating information exchange. 33 (1) The commission shall provide for facilitating the exchange 34 of information to administer and implement the provisions of 35 this compact in accordance with the rules of the commission, 36 consistent with generally accepted data protection principles. 37 (2) Nothing in this compact shall be deemed or construed to 38 alter, limit, or inhibit the power of a member state to control 39 and maintain ownership of its licensee information or alter, 40 limit, or inhibit the laws or regulations governing licensee 41 information in the member state. 42 Sec. 10. Article X, oversight, dispute resolution, and SB 146—LS 7471/DI 143 24 1 enforcement. 2 (1) Oversight. 3 (A) The executive and judicial branches of state 4 government in each member state shall enforce this 5 compact and take all actions necessary and appropriate to 6 effectuate the compact's purposes and intent. The 7 provisions of this compact shall have standing as statutory 8 law. 9 (B) Venue is proper and judicial proceedings by or against 10 the commission shall be brought solely and exclusively in 11 a court of competent jurisdiction where the principal office 12 of the commission is located. The commission may waive 13 venue and jurisdictional defenses to the extent it adopts or 14 consents to participate in alternative dispute resolution 15 proceedings. Nothing herein shall affect or limit the 16 selection or propriety of venue in any action against a 17 licensee for professional malpractice, misconduct or any 18 such similar matter. 19 (C) All courts and all administrative agencies shall take 20 judicial notice of the compact, the rules of the commission, 21 and any information provided to a member state pursuant 22 thereto in any judicial or quasi-judicial proceeding in a 23 member state pertaining to the subject matter of this 24 compact, or which may affect the powers, responsibilities, 25 or actions of the commission. 26 (D) The commission shall be entitled to receive service of 27 process in any proceeding regarding the enforcement or 28 interpretation of the compact and shall have standing to 29 intervene in such a proceeding for all purposes. Failure to 30 provide the commission service of process shall render a 31 judgment or order void as to the commission, this compact, 32 or promulgated rules. 33 (2) Default, technical assistance, and termination. 34 (A) If the commission determines that a member state has 35 defaulted in the performance of its obligations or 36 responsibilities under this compact or the promulgated 37 rules, the commission shall: 38 (i) provide written notice to the defaulting state and 39 other member states of the nature of the default, the 40 proposed means of curing the default or any other action 41 to be taken by the commission; and 42 (ii) provide remedial training and specific technical SB 146—LS 7471/DI 143 25 1 assistance regarding the default. 2 (3) If a state in default fails to cure the default, the defaulting 3 state may be terminated from the compact upon an 4 affirmative vote of a majority of the commissioners of the 5 member states, and all rights, privileges, and benefits 6 conferred on that state by this compact may be terminated on 7 the effective date of termination. A cure of the default does 8 not relieve the offending state of obligations or liabilities 9 incurred during the period of default. 10 (4) Termination of membership in the compact shall be 11 imposed only after all other means of securing compliance 12 have been exhausted. Notice of intent to suspend or terminate 13 shall be given by the commission to the governor, the majority 14 and minority leaders of the defaulting state's legislature, the 15 state licensing authority and each of the member states. 16 (5) A state that has been terminated is responsible for all 17 assessments, obligations, and liabilities incurred through the 18 effective date of termination, including obligations that extend 19 beyond the effective date of termination. 20 (6) The commission shall not bear any costs related to a state 21 that is found to be in default or that has been terminated from 22 the compact, unless agreed upon in writing between the 23 commission and the defaulting state. 24 (7) The defaulting state may appeal the action of the 25 commission by petitioning the United States District Court for 26 the District of Columbia or the federal district where the 27 commission has its principal offices. The prevailing party 28 shall be awarded all costs of such litigation, including 29 reasonable attorney's fees. 30 (8) Dispute resolution. 31 (A) Upon request by a member state, the commission shall 32 attempt to resolve disputes related to the compact that 33 arise among member states and between member and 34 non-member states. 35 (B) The commission shall promulgate a rule providing for 36 both binding and nonbinding alternative dispute resolution 37 for disputes as appropriate. 38 (9) Enforcement. 39 (A) The commission, in the reasonable exercise of its 40 discretion, shall enforce the provisions and rules of this 41 compact. 42 (B) By majority vote, the commission may initiate legal SB 146—LS 7471/DI 143 26 1 action in the United States District Court for the District of 2 Columbia or the federal district where the commission has 3 its principal offices against a member state in default to 4 enforce compliance with the provisions of the compact and 5 its promulgated rules and bylaws. The relief sought may 6 include both injunctive relief and damages. In the event 7 judicial enforcement is necessary, the prevailing party 8 shall be awarded all costs of such litigation, including 9 reasonable attorney's fees. The remedies herein shall not 10 be the exclusive remedies of the commission. The 11 commission may pursue any other remedies available 12 under federal or state law. 13 Sec. 11. Article XI, effectuation, withdrawal, and amendment. 14 (1) The compact shall come into effect on the date on which 15 the compact statute is enacted into law in the tenth member 16 state. 17 (A) On or after the effective date of the compact, the 18 commission shall convene and review the enactment of 19 each of the charter member states to determine if the 20 statute enacted by each such charter member state is 21 materially different from the model compact statute. 22 (B) A charter member state whose enactment is found to 23 be materially different from the model compact statute 24 shall be entitled to the default process set forth in Article 25 X. 26 (C) Member states enacting the compact subsequent to the 27 charter member states shall be subject to the process set 28 forth in Article VII, section 7(c)(20) of this chapter to 29 determine if their enactments are materially different from 30 the model compact statute and whether they qualify for 31 participation in the compact. 32 (2) If any member state is later found to be in default, or is 33 terminated or withdraws from the compact, the commission 34 shall remain in existence and the compact shall remain in 35 effect even if the number of member states should be less than 36 ten (10). 37 (3) Any state that joins the compact after the commission's 38 initial adoption of the rules and bylaws shall be subject to the 39 rules and bylaws as they exist on the date on which the 40 compact becomes law in that state. Any rule that has been 41 previously adopted by the commission shall have the full force 42 and effect of law on the day the compact becomes law in that SB 146—LS 7471/DI 143 27 1 state, as the rules and bylaws may be amended as provided in 2 this compact. 3 (4) Any member state may withdraw from this compact by 4 enacting a statute repealing the same. 5 (A) A member state's withdrawal shall not take effect until 6 six (6) months after enactment of the repealing statute. 7 (B) Withdrawal shall not affect the continuing requirement 8 of the withdrawing state's licensing authority to comply 9 with the investigative and adverse action reporting 10 requirements of this act prior to the effective date of 11 withdrawal. 12 (5) This compact may be amended by the member states. No 13 amendment to this compact shall become effective and 14 binding upon any member state until it is enacted into the 15 laws of all member states. 16 Sec. 12. Article XII, construction and severability. 17 (1) This compact shall be liberally construed to effectuate the 18 purposes thereof. The provisions of this compact shall be 19 severable and if any phrase, clause, sentence, or provision of 20 this compact is declared to be contrary to the constitution of 21 any member state or a state seeking membership in the 22 compact, or of the United States or the applicability thereof to 23 any other government, agency, person, or circumstance is 24 held invalid, the validity of the remainder of this compact and 25 the applicability thereof to any government, agency, person, 26 or circumstance shall not be affected thereby. If this compact 27 shall be held contrary to the constitution of any member state, 28 the compact shall remain in full force and effect as to the 29 remaining member states and in full force and effect as to the 30 member state affected as to all severable matters. 31 Sec. 13. Article XIII, consistent effect and conflict with other 32 state laws. 33 (1) Nothing herein shall prevent or inhibit the enforcement of 34 any other law of a member state that is not inconsistent with 35 the compact. 36 (2) Any laws, statutes, regulations, or other legal 37 requirements in a member state in conflict with the compact 38 are superseded to the extent of the conflict. 39 (3) All permissible agreements between the commission and 40 the member states are binding in accordance with their terms. 41 Sec. 14. (a) The secretary of education, or a person authorized 42 to act on behalf of the secretary of education, is the education SB 146—LS 7471/DI 143 28 1 official selected by this state to negotiate and enter into, on behalf 2 of this state, contracts under the interstate agreement set forth in 3 section 1 of this chapter. 4 (b) The designated education official, acting jointly with similar 5 officers of other party states, may adopt rules to carry out more 6 effectively the terms of the interstate agreement. 7 (c) The designated education official is authorized, empowered, 8 and directed to cooperate with all departments, agencies, and 9 officers of state government and its subdivisions in facilitating the 10 proper administration of the following: 11 (1) The interstate agreement. 12 (2) A supplementary agreement entered into by this state 13 under the interstate agreement. 14 SECTION 10. IC 20-43-10-3.5, AS AMENDED BY P.L.93-2024, 15 SECTION 147, IS AMENDED TO READ AS FOLLOWS 16 [EFFECTIVE JUNE 29, 2025]: Sec. 3.5. (a) As used in this section, 17 "school" means a school corporation or charter school. and a virtual 18 charter school. 19 (b) Subject to the requirements of this section, A school qualifies for 20 a teacher appreciation incentivization grant as provided in this section 21 for a state fiscal year if one (1) or more licensed teachers 22 (1) employed in the classroom by the school; or 23 (2) directly providing virtual education; 24 were rated as effective or as highly effective, using the most recently 25 completed teacher ratings. are employed to provide direct 26 instruction to students in the classroom. 27 (c) A school may not receive a teacher appreciation incentivization 28 grant under this section unless the: 29 (1) the school has in the state fiscal year in which the teacher 30 appreciation incentivization grants are made under this section 31 (A) adopted an annual policy concerning the distribution of 32 teacher appreciation grants; and 33 (B) submitted the policy a distribution plan to the department 34 for approval; and 35 (2) the department has approved the policy. approves the plan; 36 and 37 (3) governing body or the equivalent for a charter school 38 adopts the approved plan. 39 The department shall specify the date by which a policy plan described 40 in subdivision (1) must be submitted to the department. 41 (d) The amount of a teacher appreciation incentivization grant for 42 a qualifying school corporation or virtual charter school is equal to: SB 146—LS 7471/DI 143 29 1 (1) thirty-seven dollars and fifty-cents ($37.50); multiplied by 2 (2) the school's current ADM. 3 However, the grant amount for a virtual charter school may not exceed 4 the statewide average grant amount. 5 (e) The following apply to the distribution of teacher appreciation 6 incentivization grants: 7 (1) If the total amount to be distributed as teacher appreciation 8 incentivization grants for a particular state fiscal year exceeds the 9 amount appropriated by the general assembly for teacher 10 appreciation incentivization grants for that state fiscal year, the 11 total amount to be distributed as teacher appreciation 12 incentivization grants to schools shall be proportionately reduced 13 so that the total reduction equals the amount of the excess. The 14 amount of the reduction for a particular school is equal to the total 15 amount of the excess multiplied by a fraction. The numerator of 16 the fraction is the amount of the teacher appreciation grant that 17 the school would have received if a reduction were not made 18 under this section. The denominator of the fraction is the total 19 amount that would be distributed as teacher appreciation grants 20 to all schools if a reduction were not made under this section. 21 (2) If the total amount to be distributed as teacher appreciation 22 incentivization grants for a particular state fiscal year is less than 23 the amount appropriated by the general assembly for teacher 24 appreciation incentivization grants for that state fiscal year, the 25 total amount to be distributed as teacher appreciation 26 incentivization grants to schools for that particular state fiscal 27 year shall be proportionately increased so that the total amount to 28 be distributed equals the amount of the appropriation for that 29 particular state fiscal year. 30 (f) The annual teacher appreciation incentivization grant to which 31 a school is entitled for a state fiscal year shall be distributed to the 32 school before December 5 April 15 of that state fiscal year. 33 (g) The following apply to a school's policy plan under subsection 34 (c) concerning the distribution of teacher appreciation incentivization 35 grants: 36 (1) The governing body or the equivalent for a charter school 37 shall differentiate between a teacher rated as a highly effective 38 teacher and a teacher rated as an effective teacher. The policy 39 must provide that the amount of a stipend awarded to a teacher 40 rated as a highly effective teacher must be at least twenty-five 41 percent (25%) more than the amount of a stipend awarded to a 42 teacher rated as an effective teacher. SB 146—LS 7471/DI 143 30 1 (2) The governing body of a school may differentiate between 2 school buildings. distribute differentiated stipends under the 3 plan based on one (1) or more of the following criteria: 4 (A) Whether the teacher serves as the teacher of record or 5 teacher of service for students receiving special education 6 services. 7 (B) Whether the teacher serves as the teacher of record or 8 teacher of service for English language learners. 9 (C) Whether the teacher has an average class size of more 10 than thirty (30) students. 11 (D) Whether the teacher has five (5) or more years of 12 service and serves in an official mentoring capacity for one 13 (1) or more teachers. 14 (E) Whether the teacher serves as the teacher of record in 15 high need areas based on educator supply and demand 16 data as determined by the department. 17 (F) Whether the teacher serves as the teacher of record or 18 teacher of service for students who demonstrate significant 19 annual growth as determined by the department on one (1) 20 or more of the following: 21 (i) The determinant evaluation of reading skills approved 22 by the state board under IC 20-32-8.5-2. 23 (ii) The statewide assessment program under 24 IC 20-32-5.1-7. 25 (iii) Any additional performance indicator approved by 26 the department. 27 (3) (2) A stipend to an individual teacher in a particular year is 28 not subject to collective bargaining and is in addition to the 29 minimum salary or increases in salary set under IC 20-28-9-1.5. 30 The governing body may provide that an amount not exceeding 31 fifty percent (50%) of the amount of a stipend to an individual 32 teacher in a particular state fiscal year becomes a permanent part 33 of and increases the base salary of the teacher receiving the 34 stipend for school years beginning after the state fiscal year in 35 which the stipend is received. The addition to base salary is not 36 subject to collective bargaining. 37 (h) A teacher appreciation incentivization grant received by a 38 school shall be allocated among and used only to pay cash stipends to 39 all licensed teachers employed to provide direct instruction to 40 students in the classroom who are rated as effective or as highly 41 effective and employed by the school as of December 1. A school may 42 allocate up to twenty percent (20%) of the grant received by the school SB 146—LS 7471/DI 143 31 1 to provide a supplemental award to teachers with less than five (5) 2 years of service who are rated as effective or as highly effective. A 3 school may allocate up to ten percent (10%) of the grant received by 4 the school to provide a supplemental award to teachers who serve as 5 mentors to teachers who have less than two (2) years of service. The 6 supplemental awards are in addition to the award made from the part 7 of the grant that is allocated to all eligible teachers. as of April 15. 8 (i) The lead school corporation or interlocal cooperative 9 administering a cooperative or other special education program or 10 administering a career and technical education program, including 11 programs managed under IC 20-26-10, IC 20-35-5, IC 20-37, or 12 IC 36-1-7, shall award teacher appreciation incentivization grant 13 stipends to and carry out the other responsibilities of an employing 14 school corporation under this section for the teachers in the special 15 education program or career and technical education program. 16 (j) A school shall distribute all stipends from a teacher appreciation 17 incentivization grant to individual teachers within twenty (20) sixty 18 (60) business days of the date the department distributes the teacher 19 appreciation incentivization grant to the school. Any part of the 20 teacher appreciation incentivization grant not distributed as stipends 21 to teachers before February must be returned to the department on the 22 earlier of the date set by the department or June 30 of that state fiscal 23 year. 24 (k) The department, after review by the budget committee, may 25 waive the December 5 deadline under subsection (f) to distribute an 26 annual teacher appreciation grant to the school under this section for 27 that state fiscal year and approve an extension of that deadline to a later 28 date within that state fiscal year, if the department determines that a 29 waiver and extension of the deadline are in the public interest. 30 (l) The state board may adopt rules under IC 4-22-2 as necessary to 31 implement this section. 32 (m) (k) This section expires June 30, 2025. 2027. 33 SECTION 11. IC 34-30-2.1-287.3 IS ADDED TO THE INDIANA 34 CODE AS A NEW SECTION TO READ AS FOLLOWS 35 [EFFECTIVE JULY 1, 2025]: Sec. 287.3. IC 20-38-4-7(d)(8) 36 (Concerning the members, officers, executive director, employees, 37 and representatives of the interstate teacher mobility compact 38 commission). 39 SECTION 12. An emergency is declared for this act. SB 146—LS 7471/DI 143 32 COMMITTEE REPORT Mr. President: The Senate Committee on Education and Career Development, to which was referred Senate Bill No. 146, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows: Page 1, delete lines 1 through 17. Delete pages 2 through 7. Page 8, delete lines 1 through 30, begin a new paragraph and insert: "SECTION 1. IC 20-19-3-38 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 38. (a) As used in this section: (1) "school health plan" refers to a school employee health plan offered under IC 20-26-17; and (2) "state health plan" refers to a state employee health plan offered under IC 5-10-8-6.7. (b) Before November 1, 2025, the department shall prepare and submit a report to the general assembly in an electronic format under IC 5-14-6 that provides an analysis of the feasibility and cost of increasing school corporation employee health plan options. (c) The report described in subsection (b) must include the following: (1) An analysis of the feasibility and cost of allowing a school corporation employee to elect to participate in a state health plan if the state health plan is less expensive than the school health plan offered by the employee's school corporation. (2) An analysis of the feasibility and cost of allowing a school corporation employee who elects, as described in subdivision (1), to participate in a less expensive state health plan to apply the difference between the amount of the school health plan offered by the employee's school corporation and the amount of the state health plan to: (A) the employee's defined contribution account, if the employee maintains a defined contribution account; or (B) the employee's annual salary. (d) This section expires July 1, 2026.". Page 9, delete lines 20 through 42. Page 10, delete lines 1 through 38. Renumber all SECTIONS consecutively. and when so amended that said bill do pass and be reassigned to the Senate Committee on Appropriations. SB 146—LS 7471/DI 143 33 (Reference is to SB 146 as introduced.) RAATZ, Chairperson Committee Vote: Yeas 11, Nays 0. SB 146—LS 7471/DI 143