Introduced Version
SENATE BILL No. 335
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-18-2-22; IC 20-28-9-27; IC 20-29-6;
IC 20-43-10-3.7.
Synopsis: Teacher retention grant program. Creates the teacher
retention grant (grant). Provides that certain schools qualify for a grant
if one or more licensed teachers employed by the school or directly
providing virtual education were rated as effective or highly effective.
Requires certain schools to create and submit policies to the
department of education (department) in order to receive a grant.
Provides that the amount of a grant is equal to $37.50 multiplied by a
school's current ADM. Provides that the department shall distribute the
grant in accordance with the following priorities: (1) to the extent
possible, to achieve geographic balance throughout Indiana and to
include urban, suburban, and rural schools; and (2) to address a
documented need for teacher retention grants based on a low teacher
retention rate as determined by the department. Makes conforming
changes treating teacher retention grants in the same manner as teacher
appreciation grants.
Effective: July 1, 2025.
Spencer
January 13, 2025, read first time and referred to Committee on Education and Career
Development.
2025 IN 335—LS 6782/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. 335
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 20-18-2-22, AS AMENDED BY P.L.246-2023,
2 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 22. (a) "Teacher" means a professional person
4 whose position in a school corporation requires certain educational
5 preparation and licensing and whose primary responsibility is the
6 instruction of students.
7 (b) Except as provided in subsections (d) and (e), for purposes of
8 IC 20-28, the term includes the following:
9 (1) A superintendent who holds a license under IC 20-28-5.
10 (2) A principal.
11 (3) A teacher.
12 (4) A librarian.
13 (5) A school counselor.
14 (6) A school psychologist.
15 (c) For purposes of IC 20-43-10-3.5 and IC 20-43-10-3.7, the term
16 means a professional person whose position with a:
17 (1) school corporation;
2025 IN 335—LS 6782/DI 143 2
1 (2) special education cooperative established under IC 20-35-5;
2 (3) cooperative career and technical education program;
3 (4) special education program established by an interlocal
4 agreement under IC 36-1-7;
5 (5) joint program agreement established under IC 20-26-10; or
6 (6) charter school;
7 requires a license (as defined in IC 20-28-1-7) and whose primary
8 responsibility is the instruction of students in the classroom or virtual
9 classroom.
10 (d) "Teacher" for purposes of IC 20-28-9-26 and IC 20-28-9-27,
11 means a classroom teacher licensed under IC 20-28-5 who provides
12 instruction to students for at least fifty percent (50%) of the teacher's
13 work day.
14 (e) For purposes of IC 20-28-9-28, the term includes an adjunct
15 teacher, school counselor, and permanent substitute teacher employed
16 by a school corporation.
17 SECTION 2. IC 20-28-9-27, AS AMENDED BY P.L.150-2024,
18 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]: Sec. 27. (a) As used in this section, "funding floor"
20 means the amount a school corporation expended for full-time teacher
21 salaries during a particular state fiscal year.
22 (b) Subject to subsections (d) and (e), if the amount of state tuition
23 support distributed to a school corporation for a particular state fiscal
24 year is greater than the amount of state tuition support distributed to the
25 school corporation for the preceding state fiscal year, the school
26 corporation may not expend an amount for full-time teacher salaries
27 during the particular state fiscal year that is less than the funding floor
28 for the preceding state fiscal year.
29 (c) For purposes of this section, the amount a school corporation
30 expends for full-time teacher salaries shall include the amount the
31 school corporation expends for participating in a special education
32 cooperative or a career and technical education cooperative that is
33 directly attributable to the salaries of full-time teachers employed by
34 the cooperative, as determined by the department.
35 (d) For purposes of this subsection, stipends paid using teacher
36 appreciation grants under IC 20-43-10-3.5 and teacher retention
37 grants under IC 20-43-10-3.7 are not considered. If a school
38 corporation has awarded stipends to a majority of the school
39 corporation's teachers in each of the two (2) preceding consecutive
40 state fiscal years, an amount equal to the lesser of the total amount of
41 stipends awarded in each of those state fiscal years shall be added to
42 the school corporation's funding floor for the preceding state fiscal year
2025 IN 335—LS 6782/DI 143 3
1 described under subsection (b).
2 (e) Beginning after June 30, 2024, for each state fiscal year that a
3 school corporation fails to meet the expenditure requirements regarding
4 full-time teacher salaries under subsection (b), the department shall
5 submit in both a written and an electronic format a notice to the school
6 corporation's:
7 (1) superintendent;
8 (2) school business officer; and
9 (3) governing body;
10 that the school corporation failed to meet the requirements set forth in
11 subsection (b) for the applicable state fiscal year.
12 (f) If a school corporation's governing body receives a notice from
13 the department under subsection (e), the school corporation shall do the
14 following:
15 (1) Publicly acknowledge receipt of the notice from the
16 department at the governing body's next public meeting.
17 (2) Enter into the governing body's official minutes for the
18 meeting described in subdivision (1) acknowledgment of the
19 notice.
20 (3) Not later than thirty (30) days after the meeting described in
21 subdivision (1), publish on the school corporation's website:
22 (A) the department's notice; and
23 (B) any relevant individual reports prepared by the
24 department.
25 (g) If the department determines a school corporation that received
26 one (1) or more notices from the department under subsection (e) has
27 met the expenditure requirements required under subsection (b) for a
28 subsequent state fiscal year, the school corporation may remove from
29 the school corporation's website any:
30 (1) notices the school corporation received under subsection (e);
31 and
32 (2) relevant individual reports prepared by the department under
33 subsection (f)(3).
34 SECTION 3. IC 20-29-6-4, AS AMENDED BY P.L.217-2017,
35 SECTION 101, IS AMENDED TO READ AS FOLLOWS
36 [EFFECTIVE JULY 1, 2025]: Sec. 4. (a) A school employer shall
37 bargain collectively with the exclusive representative on the following:
38 (1) Salary.
39 (2) Wages.
40 (3) Salary and wage related fringe benefits, including accident,
41 sickness, health, dental, vision, life, disability, retirement benefits,
42 and paid time off as permitted to be bargained under
2025 IN 335—LS 6782/DI 143 4
1 IC 20-28-9-11.
2 (b) Salary and wages include the amounts of pay increases available
3 to employees under the compensation plan adopted under
4 IC 20-28-9-1.5, but do not include the teacher evaluation procedures
5 and criteria, any components of the teacher evaluation plan, rubric, or
6 tool, or any performance stipend or addition to base salary based on a
7 stipend to an individual teacher under IC 20-43-10-3.5 or
8 IC 20-43-10-3.7.
9 SECTION 4. IC 20-29-6-4.5, AS AMENDED BY P.L.217-2017,
10 SECTION 102, IS AMENDED TO READ AS FOLLOWS
11 [EFFECTIVE JULY 1, 2025]: Sec. 4.5. (a) For a contract entered into
12 after June 30, 2011, a school employer may not bargain collectively
13 with the exclusive representative on the following:
14 (1) The school calendar.
15 (2) Teacher dismissal procedures and criteria.
16 (3) Restructuring options available to a school employer under
17 federal or state statutes, regulations, or rules because of the failure
18 of the school corporation or a school to meet federal or state
19 accountability standards.
20 (4) The ability of a school employer to contract, partner, or
21 operate jointly with an educational entity that provides
22 postsecondary credits to students of the school employer or dual
23 credits from the school employer and the educational entity.
24 (5) Any subject not expressly listed in section 4 of this chapter.
25 (b) For a contract entered into after January 1, 2015, for a school
26 year beginning after June 30, 2015, a school employer may not bargain
27 collectively with the exclusive representative for the following:
28 (1) A matter described in subsection (a).
29 (2) A matter that another statute specifies is not subject to
30 collective bargaining, including IC 20-28-9-1.5, and
31 IC 20-43-10-3.5, and IC 20-43-10-3.7.
32 (c) A subject set forth in subsection (a) or (b) that may not be
33 bargained collectively may not be included in an agreement entered
34 into under this article.
35 SECTION 5. IC 20-29-6-16, AS AMENDED BY P.L.217-2017,
36 SECTION 104, IS AMENDED TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2025]: Sec. 16. (a) If an agreement has not been
38 reached on the items to be bargained collectively by November 1, as
39 provided in IC 6-1.1-17-5, the parties shall continue the terms of the
40 current contract that is in effect, and the school employer may issue
41 tentative individual contracts and prepare its budget on that basis.
42 During this period, in order to allow the successful resolution of the
2025 IN 335—LS 6782/DI 143 5
1 dispute, the school employer may not unilaterally change the terms or
2 conditions of employment that are issues in dispute.
3 (b) Upon the expiration of the current contract that is in effect,
4 except for teacher appreciation grant stipends, teacher retention grant
5 stipends, and additions to base salary provided under IC 20-43-10-3.5
6 or IC 20-43-10-3.7, the school employer shall continue under the
7 terms of the current contract that is in effect, with no increase or
8 increment in salary, wages, or benefits for any bargaining unit
9 employee until a new contract is executed.
10 (c) The only parts of the contract that must continue under this
11 section are the items contained in the contract and listed in section 4 of
12 this chapter.
13 (d) This section may not be construed as relieving the school
14 employer or the school employee organization from the duty to bargain
15 collectively until a mutual agreement has been reached and a contract
16 entered as called for in this chapter.
17 SECTION 6. IC 20-43-10-3.7 IS ADDED TO THE INDIANA
18 CODE AS A NEW SECTION TO READ AS FOLLOWS
19 [EFFECTIVE JULY 1, 2025]: Sec. 3.7. (a) As used in this section,
20 "school" means a school corporation, charter school, and a virtual
21 charter school.
22 (b) Subject to the requirements of this section, a school qualifies
23 for a teacher retention grant as provided in this section for a state
24 fiscal year if one (1) or more licensed teachers:
25 (1) employed in the classroom by the school; or
26 (2) directly providing virtual education;
27 were rated as effective or as highly effective, using the most
28 recently completed teacher ratings.
29 (c) A school may not receive a teacher retention grant under this
30 section unless:
31 (1) the school has in the state fiscal year in which the teacher
32 retention grants are made under this section:
33 (A) adopted an annual policy concerning the distribution
34 of teacher retention grants; and
35 (B) submitted the policy to the department for approval;
36 and
37 (2) the department has approved the policy.
38 The department shall specify the date by which a policy described
39 in subdivision (1) must be submitted to the department.
40 (d) The amount of a teacher retention grant for a qualifying
41 school corporation or virtual charter school is equal to:
42 (1) thirty-seven dollars and fifty cents ($37.50); multiplied by
2025 IN 335—LS 6782/DI 143 6
1 (2) the school's current ADM.
2 However, the grant amount for a virtual charter school may not
3 exceed the statewide average grant amount.
4 (e) The following apply to the distribution of teacher retention
5 grants:
6 (1) If the total amount to be distributed as teacher retention
7 grants for a particular state fiscal year exceeds the amount
8 appropriated by the general assembly for teacher retention
9 grants for that state fiscal year, the total amount to be
10 distributed as teacher retention grants to schools shall be
11 proportionately reduced so that the total reduction equals the
12 amount of the excess. The amount of the reduction for a
13 particular school is equal to the total amount of the excess
14 multiplied by a fraction. The numerator of the fraction is the
15 amount of the teacher retention grant that the school would
16 have received if a reduction were not made under this section.
17 The denominator of the fraction is the total amount that
18 would be distributed as teacher retention grants to all schools
19 if a reduction were not made under this section.
20 (2) If the total amount to be distributed as teacher retention
21 grants for a particular state fiscal year is less than the amount
22 appropriated by the general assembly for teacher retention
23 grants for that state fiscal year, the total amount to be
24 distributed as teacher retention grants to schools for that
25 particular state fiscal year shall be proportionately increased
26 so that the total amount to be distributed equals the amount
27 of the appropriation for that particular state fiscal year.
28 (f) The annual teacher retention grant to which a school is
29 entitled for a state fiscal year shall be distributed to the school
30 before December 5 of that state fiscal year. The department shall
31 distribute the annual teacher retention grant in accordance with
32 the following priorities:
33 (1) To the extent possible, to achieve geographic balance
34 throughout Indiana and to include urban, suburban, and
35 rural schools.
36 (2) To address a documented need for teacher retention
37 grants based on a low teacher retention rate as determined by
38 the department.
39 (g) The following apply to a school's policy under subsection (c)
40 concerning the distribution of teacher retention grants:
41 (1) The governing body shall differentiate between a teacher
42 rated as a highly effective teacher and a teacher rated as an
2025 IN 335—LS 6782/DI 143 7
1 effective teacher. The policy must provide that the amount of
2 a stipend awarded to a teacher rated as a highly effective
3 teacher must be at least twenty-five percent (25%) more than
4 the amount of a stipend awarded to a teacher rated as an
5 effective teacher.
6 (2) The governing body of a school may differentiate between
7 school buildings.
8 (3) A stipend to an individual teacher in a particular year is
9 not subject to collective bargaining and is in addition to the
10 minimum salary or increases in salary set under
11 IC 20-28-9-1.5. The governing body may provide that an
12 amount not exceeding fifty percent (50%) of the amount of a
13 stipend to an individual teacher in a particular state fiscal
14 year becomes a permanent part of and increases the base
15 salary of the teacher receiving the stipend for school years
16 beginning after the state fiscal year in which the stipend is
17 received. The addition to base salary is not subject to
18 collective bargaining.
19 (h) A teacher retention grant received by a school shall be
20 allocated among and used only to pay cash stipends to all licensed
21 teachers employed in the classroom who are rated as effective or
22 as highly effective and employed by the school as of December 1.
23 A school may allocate up to twenty percent (20%) of the grant
24 received by the school to provide a supplemental award to teachers
25 with less than five (5) years of service who are rated as effective or
26 as highly effective. A school may allocate up to ten percent (10%)
27 of the grant received by the school to provide a supplemental
28 award to teachers who serve as mentors to teachers who have less
29 than two (2) years of service. The supplemental awards are in
30 addition to the award made from the part of the grant that is
31 allocated to all eligible teachers.
32 (i) The lead school corporation or interlocal cooperative
33 administering a cooperative or other special education program or
34 administering a career and technical education program, including
35 programs managed under IC 20-26-10, IC 20-35-5, IC 20-37, or
36 IC 36-1-7, shall award teacher retention grant stipends to and
37 carry out the other responsibilities of an employing school
38 corporation under this section for the teachers in the special
39 education program or career and technical education program.
40 (j) A school shall distribute all stipends from a teacher retention
41 grant to individual teachers within twenty (20) business days of the
42 date the department distributes the teacher appreciation grant to
2025 IN 335—LS 6782/DI 143 8
1 the school. Any part of the teacher retention grant not distributed
2 as stipends to teachers before February must be returned to the
3 department on the earlier of the date set by the department or June
4 30 of that state fiscal year.
5 (k) The department, after review by the budget committee, may
6 waive the December 5 deadline under subsection (f) to distribute
7 an annual teacher retention grant to the school under this section
8 for that state fiscal year and approve an extension of that deadline
9 to a later date within that state fiscal year, if the department
10 determines that a waiver and extension of the deadline are in the
11 public interest.
12 (l) The state board may adopt rules under IC 4-22-2 as
13 necessary to implement this section.
14 (m) This section expires June 30, 2027.
2025 IN 335—LS 6782/DI 143