*ES0373.2*
Reprinted
April 15, 2025
ENGROSSED
SENATE BILL No. 373
_____
DIGEST OF SB 373 (Updated April 14, 2025 4:06 pm - DI 110)
Citations Affected: IC 20-19; IC 20-20; IC 20-25; IC 20-27;
IC 20-28; IC 20-30; IC 20-32; IC 20-35.
Synopsis: Various education matters. Provides that the department of
education (department) is designated as the proper authority to accept
federal funds appropriated to aid in the education of children with
disabilities (current law provides that the state board of education (state
board) is the proper authority). Establishes a three school year: (1)
centralized school facilities pilot program; and (2) student
transportation pilot program. Allows: (1) not more than three
applications, as selected by the department, to participate in the
centralized school facilities pilot program; and (2) not more than three
(Continued next page)
Effective: Upon passage; July 1, 2025.
Raatz, Rogers
(HOUSE SPONSOR — BEHNING)
January 13, 2025, read first time and referred to Committee on Education and Career
Development.
January 23, 2025, amended, reported favorably — Do Pass.
January 27, 2025, read second time, ordered engrossed. Engrossed.
January 28, 2025, read third time, passed. Yeas 49, nays 0.
HOUSE ACTION
March 3, 2025, read first time and referred to Committee on Education.
April 9, 2025, amended, reported — Do Pass.
April 14, 2025, read second time, amended, ordered engrossed.
ES 373—LS 7358/DI 143 Digest Continued
applications, as selected by the department, to participate in the student
transportation pilot program. Establishes a: (1) local centralized school
facilities board; and (2) local student transportation board; for
participating school corporations and schools and grants the local
boards certain powers and duties. Allows school corporations and
schools to opt out of the pilot programs by providing a one year notice.
Requires the department of local government finance, in consultation
with the department, to prepare and submit reports that include certain
recommendations. Establishes a mastery based education pilot program
administered by the department. Provides that school corporations and
charter schools may apply to participate in the mastery based education
pilot program. Establishes the Indianapolis local education alliance and
requires the alliance to conduct a school facilities assessment and
establish a school facilities and transportation implementation plan.
Provides that the evaluation process for certain curricular materials
must include the age appropriateness of the content. Removes the
member of the Indiana Transportation Association from the list of
nonvoting members on the state school bus committee. Provides that
an individual seeking an initial practitioners license through an
alternative certification path must successfully complete an applicable
teacher licensing exam as approved by the state board (current law
requires the successful completion of a Praxis Subject Assessment).
Provides that summer school funding may be differentiated based on
the course and length of time of the summer school program. Moves
the establishment of the division of special education from the state
board to the department. Changes certain duties for the secretary of
education and the director of special education.
ES 373—LS 7358/DI 143ES 373—LS 7358/DI 143 Reprinted
April 15, 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.
ENGROSSED
SENATE BILL No. 373
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 20-19-2-16, AS ADDED BY P.L.1-2005,
2 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 16. (a) The state accepts the provisions and
4 benefits of laws enacted by the Congress of the United States that
5 provide for aid to children with disabilities.
6 (b) The state board department is designated as the proper
7 authority and may accept any federal funds appropriated to aid in the
8 education of children with disabilities. The state board department
9 shall comply with all the requirements of:
10 (1) federal law concerning any federal funds relating to special
11 educational activities; and
12 (2) any amendments to those laws or rules and regulations issued
13 under and in conformity with those laws and not inconsistent with
14 this chapter.
15 SECTION 2. IC 20-20-5.5-2, AS AMENDED BY P.L.245-2023,
16 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2025]: Sec. 2. (a) Not later than July 1 2024, and each July 1
ES 373—LS 7358/DI 143 2
1 thereafter, of each year, the department shall evaluate, approve, and
2 publish a list of high quality curricular materials for use in the
3 following subjects:
4 (1) Science.
5 (2) Technology.
6 (3) Engineering.
7 (4) Math.
8 The department shall post the list approved under this subsection on
9 the department's website.
10 (b) Subject to subsection (g), the department shall determine the:
11 (1) process for evaluating and approving curricular materials
12 under subsection (a); and
13 (2) requirements for curricular materials to be approved and
14 included on the list described in subsection (a).
15 (c) The department shall publish an annual report that describes the
16 method used to conduct the evaluation required under subsection (a)
17 and that contains the results of the evaluation. The report must do the
18 following:
19 (1) Provide a list of each curricular material evaluated and a
20 summary of the evaluation for each curricular material.
21 (2) Provide a listing and summary review for the high quality
22 curricular materials approved by the department.
23 (3) Include any clarification or response from the publisher of a
24 curricular material related to the department's summary review
25 provided under subdivision (2).
26 (4) Include the written, exact, and standard statewide price
27 provided by the publisher of the curricular material under
28 subsection (e) for each high quality curricular material approved
29 by the department under this section.
30 (d) A governing body and superintendent may use the list approved
31 under subsection (a) in complying with IC 20-26-12-24.
32 (e) Before the department may approve curricular material for
33 inclusion on the list under subsection (a), the publisher of the curricular
34 material must:
35 (1) provide the department a written, exact, and standard
36 statewide price for each curricular material; and
37 (2) enter into a data share agreement with the department in the
38 manner prescribed by the department.
39 (f) A publisher may request that an update to the publisher's
40 curricular materials and corresponding prices replace the information
41 on the curricular materials set forth in the report under subsection (c).
42 (g) At a minimum, the process for evaluating curricular materials
ES 373—LS 7358/DI 143 3
1 and the requirements for curricular materials to be approved and
2 included on the list described in subsection (a) must include the
3 following:
4 (1) The availability and use of benchmark, formative, interim, or
5 similar assessments to identify students that require remediation
6 and provide individualized instruction.
7 (2) The incorporation of experiential learning opportunities.
8 (3) An evaluation of the benchmark, formative, interim, or similar
9 assessment data provided by the publisher of the curricular
10 material pursuant to the data share agreement described in
11 subsection (e).
12 (4) The alignment of the curricular material to Indiana's academic
13 standards developed by the department under IC 20-31-3-2.
14 (5) The age appropriateness of the content.
15 (h) Not later than July 1, 2024, the department shall conduct a
16 statewide survey to determine which curricular materials have been
17 adopted for use in teaching science, technology, engineering, and
18 mathematics in each state accredited school. Each state accredited
19 school shall:
20 (1) participate in the statewide survey conducted under this
21 subsection; and
22 (2) provide the information requested by the department as part
23 of the statewide survey;
24 in the manner prescribed by the department. This subsection expires
25 January 1, 2025.
26 SECTION 3. IC 20-20-52 IS ADDED TO THE INDIANA CODE
27 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2025]:
29 Chapter 52. Centralized School Facilities Pilot Program and
30 Local Boards
31 Sec. 1. As used in this chapter, "local board" refers to a:
32 (1) local centralized school facilities board established under
33 section 6(a) of this chapter; or
34 (2) if applicable, local centralized school facilities and
35 transportation board established under section 6(e) of this
36 chapter.
37 Sec. 2. As used in this chapter, "pilot program" means the
38 centralized school facilities pilot program established by section 4
39 of this chapter.
40 Sec. 3. As used in this chapter, "school" means a:
41 (1) charter school; or
42 (2) nonpublic school with at least one (1) employee.
ES 373—LS 7358/DI 143 4
1 Sec. 4. (a) The centralized school facilities pilot program is
2 established to provide innovative approaches concerning the use,
3 operation, and management of school facilities to promote:
4 (1) enhanced learning environments;
5 (2) unique learning opportunities; and
6 (3) improved student academic and health outcomes;
7 in accordance with the plan submitted to the general assembly by
8 the secretary of education under IC 20-19-3-32.
9 (b) The pilot program is established for a three (3) year period
10 consisting of the 2026-2027, 2027-2028, and 2028-2029 school
11 years.
12 Sec. 5. (a) A school corporation or school, in partnership with
13 other school corporations, schools, or both other school
14 corporations and schools, may apply to the department to
15 participate in the pilot program.
16 (b) The department:
17 (1) may approve not more than a total of three (3)
18 applications under this section to participate in the pilot
19 program; and
20 (2) shall establish the application process and criteria to
21 participate in the pilot program.
22 (c) The criteria established under subsection (b)(2) must require
23 that school corporations and schools include information
24 concerning the geographic boundaries of the area to which the
25 application to participate in the pilot program applies.
26 Sec. 6. (a) Except as provided under subsection (e), not later
27 than October 31, 2025, a local centralized school facilities board is
28 established for participating school corporations and schools.
29 (b) Each local board must be independent from any school
30 corporation and school.
31 (c) The local board consists of seven (7) members who:
32 (1) are proportionately appointed as either representatives of
33 participating school corporations, charter schools, or
34 nonpublic schools described in section 3(2) of this chapter
35 based on:
36 (A) the total pupil enrollment of the participating school
37 corporations;
38 (B) the total pupil enrollment of participating charter
39 schools; and
40 (C) the total pupil enrollment of participating nonpublic
41 schools;
42 that are partnering under the pilot program; and
ES 373—LS 7358/DI 143 5
1 (2) are members of the:
2 (A) governing body of a participating school corporation;
3 (B) charter school board of a participating charter school;
4 or
5 (C) equivalent of a governing body for a participating
6 nonpublic school;
7 described in subdivision (1).
8 (d) Each local board must collaborate with individuals or
9 entities that have expertise in the following:
10 (1) Facility management, construction, or real estate.
11 (2) Public finance or public debt issuance.
12 (3) Demographic analysis and urban planning.
13 (4) Organizational effectiveness, operations management, and
14 implementing best practices.
15 (5) Government contracts.
16 (6) Budget development and oversight.
17 (e) If a school corporation or school, in partnership with other
18 school corporations, schools, or both other school corporations and
19 schools, receives approval to participate in the:
20 (1) pilot program; and
21 (2) student transportation pilot program under IC 20-20-53;
22 the school corporation or schools may elect to establish, not later
23 than October 31, 2025, one (1) local centralized school facilities and
24 transportation board consisting of the members described in
25 subsection (c) that has the powers and duties and is subject to the
26 requirements of a local centralized school facilities board under
27 this chapter and local student transportation board under
28 IC 20-20-53.
29 Sec. 7. Notwithstanding any other state law or rule, each local
30 board shall, during the pilot program, provide oversight and
31 management of school facilities with a focus on best use and
32 upkeep of assets funded by taxpayers.
33 Sec. 8. (a) Each local board shall create and implement a pilot
34 program plan that includes measures to:
35 (1) determine the:
36 (A) term lengths of the members; and
37 (B) member replacement processes;
38 for the local board;
39 (2) conduct school facility assessments for all applicable
40 school facilities;
41 (3) establish a process for the transfer to and receipt of funds,
42 as applicable, by the local board from the participating school
ES 373—LS 7358/DI 143 6
1 corporations and schools;
2 (4) accept and use donations, gifts, or bequests for the
3 purposes of this chapter;
4 (5) improve the health and safety of students and teachers;
5 (6) allow for additional flexibility and creativity in terms of
6 what is considered a school facility, including considerations
7 surrounding colocation with other schools, governmental
8 entities, or community organizations;
9 (7) enter into revenue sharing agreements and asset use
10 agreements for all school facilities within the geographic
11 boundaries described in the application under section 5(c) of
12 this chapter for the three (3) year period of the pilot program;
13 (8) address any existing excess capacity in school facilities;
14 (9) inspire opportunities for partnership with other
15 governmental entities or local nonprofit organizations to
16 transform school facilities into broader community assets for
17 residents;
18 (10) implement best practices in facilities management and
19 operations;
20 (11) track qualitative and quantitative data to gauge the
21 success of the pilot program;
22 (12) collect and report data in a manner prescribed by the
23 department regarding school facilities included in the pilot
24 program;
25 (13) manage any school facility related debt for the duration
26 of the pilot program; and
27 (14) implement a maintenance plan and contract with
28 vendors, as needed, for the duration of the pilot program.
29 (b) Not later than July 1, 2028, each local board shall develop
30 and submit to the department an implementation plan that
31 includes the following:
32 (1) Whether at the conclusion of the pilot program the:
33 (A) participating school corporations and schools, as
34 applicable, elect to continue operating with a local board;
35 and
36 (B) local board established under section 6 of this chapter
37 should be maintained or a new local board should be
38 established.
39 (2) If a new local board should be established, the following
40 components:
41 (A) The appointment of members to the new local board,
42 including the appointing authority for the members.
ES 373—LS 7358/DI 143 7
1 (B) The term lengths of the members.
2 (C) The member replacement process.
3 (3) A process to ensure that the powers and duties under this
4 chapter are maintained by the local board or transferred to
5 the new local board after completion of the pilot program.
6 (4) The transfer of all assets and related funding regarding
7 school facilities to the local board or new local board.
8 (5) The development and implementation of a long term asset
9 management and sustainability plan that includes establishing
10 the local board or new local board as a taxing unit.
11 Sec. 9. Notwithstanding any other state law or rule, beginning
12 with the 2026-2027 school year, each local board established under
13 section 6 of this chapter:
14 (1) shall exercise the full powers and duties provided under
15 the pilot program plan created under section 8(a) of this
16 chapter; and
17 (2) shall make recommendations regarding property tax levies
18 approved by the governing bodies of the applicable
19 participating school corporations.
20 Sec. 10. Each local board may contract with outside individuals
21 and entities to create and implement the pilot program plan
22 described in section 8(a) of this chapter.
23 Sec. 11. Subject to any agreement entered into by a school
24 corporation or school, a school corporation or school may at any
25 time opt out of participating in the pilot program if the school
26 corporation or school provides notice to all school corporations
27 and schools that the school corporation or school partnered with
28 under this chapter at least one (1) year before the school
29 corporation or school intends to terminate the partnership and its
30 participation under this chapter.
31 Sec. 12. Not later than November 1, 2027, the department of
32 local government finance, in consultation with the department,
33 shall do the following:
34 (1) Prepare a report that includes recommendations
35 regarding legislation and procedures to transfer the duties
36 and powers of a participating school corporation to a local
37 board or new local board as described in section 8(b) of this
38 chapter.
39 (2) Submit the report to the legislative council in an electronic
40 format under IC 5-14-6.
41 Sec. 13. Not later than November 1, 2028, the department shall
42 do the following:
ES 373—LS 7358/DI 143 8
1 (1) Prepare a report that includes the following:
2 (A) A summary regarding the:
3 (i) school corporations and schools participating in the
4 pilot program;
5 (ii) implementation of the pilot program by each local
6 board;
7 (iii) results and outcomes regarding the pilot program;
8 and
9 (iv) implementation plans submitted by the local boards
10 under section 8(b) of this chapter.
11 (B) Any recommendations regarding:
12 (i) legislation or procedures to further carry out the
13 purposes of this chapter and an implementation plan
14 submitted under section 8(b) of this chapter; and
15 (ii) whether to extend the pilot program to additional
16 applicants.
17 (C) A plan to adopt best practices from the pilot program
18 statewide.
19 (2) Submit the report to the legislative council in an electronic
20 format under IC 5-14-6.
21 Sec. 14. The department shall waive any state law or rule
22 requirement necessary to exempt participating school corporations
23 and schools from requirements for purposes of participation in the
24 pilot program under this chapter.
25 Sec. 15. This chapter shall be liberally construed to effect the
26 purposes of this chapter.
27 Sec. 16. Except as otherwise specifically provided by law, to the
28 extent the provisions of this chapter are inconsistent with the
29 provisions of any other general, special, or local law, the provisions
30 of this chapter are controlling, and compliance with this chapter
31 shall be treated as compliance with the conflicting law.
32 SECTION 4. IC 20-20-53 IS ADDED TO THE INDIANA CODE
33 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]:
35 Chapter 53. Student Transportation Pilot Program and Local
36 Boards
37 Sec. 1. As used in this chapter, "local board" refers to a:
38 (1) local student transportation board established under
39 section 6(a) of this chapter; or
40 (2) if applicable, local centralized school facilities and
41 transportation board established under section 6(e) of this
42 chapter.
ES 373—LS 7358/DI 143 9
1 Sec. 2. As used in this chapter, "pilot program" refers to the
2 student transportation pilot program established by section 4 of
3 this chapter.
4 Sec. 3. As used in this chapter, "school" means a:
5 (1) charter school; or
6 (2) nonpublic school with at least one (1) employee.
7 Sec. 4. (a) The student transportation pilot program is
8 established to provide transportation to all students attending:
9 (1) school corporations;
10 (2) charter schools; and
11 (3) nonpublic schools with at least one (1) employee;
12 within the geographic boundaries described in the application
13 under section 5(c) of this chapter.
14 (b) The pilot program is established for a three (3) year period
15 consisting of the 2026-2027, 2027-2028, and 2028-2029 school
16 years.
17 Sec. 5. (a) A school corporation or school, in partnership with
18 other school corporations, schools, or both school corporations and
19 schools, may apply to the department to participate in the pilot
20 program.
21 (b) The department:
22 (1) may approve not more than a total of three (3)
23 applications under this section to participate in the pilot
24 program; and
25 (2) shall establish the application process and criteria to
26 participate in the pilot program.
27 (c) The criteria established under subsection (b)(2) must require
28 that school corporations and schools include information
29 concerning the geographic boundaries of the area to which the
30 application to participate in the pilot program applies.
31 Sec. 6. (a) Except as provided under subsection (e), not later
32 than October 31, 2025, a local student transportation board is
33 established for participating school corporations and schools.
34 (b) Each local board must be independent from any school
35 corporation and school.
36 (c) The local board consists of seven (7) members who:
37 (1) are proportionately appointed as either representatives of
38 participating school corporations, charter schools, or
39 nonpublic schools described in section 3(2) of this chapter
40 based on:
41 (A) the total pupil enrollment of the participating school
42 corporations;
ES 373—LS 7358/DI 143 10
1 (B) the total pupil enrollment of participating charter
2 schools; and
3 (C) the total pupil enrollment of participating nonpublic
4 schools;
5 that are partnering under the pilot program; and
6 (2) are members of the:
7 (A) governing body of a participating school corporation;
8 (B) charter school board of a participating charter school;
9 or
10 (C) equivalent of a governing body for a participating
11 nonpublic school;
12 described in subdivision (1).
13 (d) Each local board must collaborate with individuals or
14 entities that have expertise in the following:
15 (1) Transportation logistics, particularly involving movement
16 of passengers.
17 (2) Finance and business.
18 (3) Organizational effectiveness, operations management, and
19 implementing best practices.
20 (4) Government contracts.
21 (5) Budget development and oversight.
22 (e) If a school corporation or school, in partnership with other
23 school corporations, schools, or both other school corporations and
24 schools, receives approval to participate in the:
25 (1) pilot program; and
26 (2) centralized school facilities pilot program under
27 IC 20-20-52;
28 the school corporation or schools may elect to establish, not later
29 than October 31, 2025, one (1) local centralized school facilities and
30 transportation board that has the powers and duties and is subject
31 to the requirements of a local centralized school facilities board
32 under IC 20-20-52 and local student transportation board under
33 this chapter.
34 Sec. 7. Notwithstanding any other state law or rule, each local
35 board shall be responsible for the oversight and management of the
36 transportation of students described in section 4 of this chapter in
37 a safe and efficient manner in accordance with the plan submitted
38 to the general assembly by the secretary of education under
39 IC 20-19-3-33.
40 Sec. 8. (a) Each local board shall create and implement a pilot
41 program plan that includes measures to:
42 (1) determine the:
ES 373—LS 7358/DI 143 11
1 (A) term lengths of the members; and
2 (B) member replacement processes;
3 for the local board;
4 (2) allow for additional flexibility and creativity to
5 accommodate student needs throughout the school day,
6 including transportation:
7 (A) to and from school;
8 (B) for before and after school opportunities;
9 (C) for work based learning experiences;
10 (D) for extracurricular activities; and
11 (E) for specialized educational opportunities;
12 (3) improve safety and efficiency for students;
13 (4) increase collaboration between school corporations,
14 schools, governmental entities, and community organizations;
15 (5) track qualitative and quantitative data to gauge the
16 success of the pilot program;
17 (6) collect and report data in a manner prescribed by the
18 department regarding the pilot program;
19 (7) provide uninterrupted transportation services for
20 homeless students or students in foster care as provided by
21 the McKinney-Vento Homeless Education Assistance
22 Improvements Act (42 U.S.C. 11431 et seq.);
23 (8) inspire opportunities for public-private partnerships or
24 partnerships with other governmental entities or local
25 nonprofit organizations;
26 (9) enter into revenue sharing agreements and asset use
27 agreements with participating school corporations and
28 schools for the duration of the three (3) year period of the
29 pilot program;
30 (10) establish a process for the transfer to and receipt of
31 funds, as applicable, by the local board from the participating
32 school corporations and schools;
33 (11) accept and use donations, gifts, or bequests for the
34 purposes of this chapter; and
35 (12) implement purchasing and maintenance plans and
36 contracts with vendors, as needed, for the three (3) year
37 period of the pilot program.
38 (b) Not later than July 1, 2028, each local board shall develop
39 and submit to the department an implementation plan that
40 includes the following:
41 (1) Whether at the conclusion of the pilot program the:
42 (A) participating school corporations and schools, as
ES 373—LS 7358/DI 143 12
1 applicable, elect to continue operating with a local board;
2 and
3 (B) local board established under section 6 of this chapter
4 should be maintained or a new local board should be
5 established.
6 (2) If a new local board should be established, the following
7 components:
8 (A) The appointment of members to the new local board,
9 including the appointing authority for the members.
10 (B) The term lengths of the members.
11 (C) The member replacement process.
12 (3) A process to ensure that the powers and duties under this
13 chapter are maintained by the local board or transferred to
14 the new local board after completion of the pilot program.
15 (4) The transfer of all assets and related funding regarding
16 school transportation to the local board or new local board.
17 (5) The development and implementation of a long term asset
18 management and sustainability plan that includes establishing
19 the local board or new local board as a taxing unit.
20 Sec. 9. Notwithstanding any other state law or rule, beginning
21 with the 2026-2027 school year, each local board established under
22 section 6 of this chapter:
23 (1) shall exercise the full powers and duties provided under
24 the pilot program plan created under section 8(a) of this
25 chapter; and
26 (2) shall make recommendations regarding property tax levies
27 approved by the governing bodies of the applicable
28 participating school corporations.
29 Sec. 10. Each local board may contract with outside entities to
30 create and implement the pilot program plan described in section
31 8(a) of this chapter.
32 Sec. 11. Subject to any agreement entered into by a school
33 corporation or school, a school corporation or school may at any
34 time opt out of participating in the pilot program if the school
35 corporation or school provides notice to all school corporations
36 and schools that the school corporation or school partnered with
37 under this chapter at least one (1) year before the school
38 corporation or school intends to terminate the partnership and its
39 participation under this chapter.
40 Sec. 12. Not later than November 1, 2027, the department of
41 local government finance, in consultation with the department,
42 shall do the following:
ES 373—LS 7358/DI 143 13
1 (1) Prepare a report that includes recommendations
2 regarding legislation and procedures to transfer the duties
3 and powers of a participating school corporation to a local
4 board or new local board as described in section 8(b) of this
5 chapter.
6 (2) Submit the report to the legislative council in an electronic
7 format under IC 5-14-6.
8 Sec. 13. Not later than November 1, 2028, the department shall
9 do the following:
10 (1) Prepare a report that includes the following:
11 (A) A summary regarding the:
12 (i) school corporations and schools participating in the
13 pilot program;
14 (ii) implementation of the pilot program by each local
15 board;
16 (iii) results and outcomes regarding the pilot program;
17 and
18 (iv) implementation plans submitted by the local boards
19 under section 8(b) of this chapter.
20 (B) Any recommendations regarding:
21 (i) legislation or procedures to further carry out the
22 purposes of this chapter and an implementation plan
23 submitted under section 8(b) of this chapter; and
24 (ii) whether to extend the pilot program to additional
25 applicants.
26 (C) A plan to adopt best practices from the pilot program
27 statewide.
28 (2) Submit the report to the legislative council in an electronic
29 format under IC 5-14-6.
30 Sec. 14. The department shall waive any state law or rule
31 requirement necessary to exempt participating school corporations
32 and schools from requirements for purposes of participation in the
33 pilot program under this chapter.
34 Sec. 15. This chapter shall be liberally construed to effect the
35 purposes of this chapter.
36 Sec. 16. Except as otherwise specifically provided by law, to the
37 extent the provisions of this chapter are inconsistent with the
38 provisions of any other general, special, or local law, the provisions
39 of this chapter are controlling, and compliance with this chapter
40 shall be treated as compliance with the conflicting law.
41 SECTION 5. IC 20-20-54 IS ADDED TO THE INDIANA CODE
42 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
ES 373—LS 7358/DI 143 14
1 JULY 1, 2025]:
2 Chapter 54. Mastery Based Education Pilot Program
3 Sec. 1. As used in this chapter, "mastery" means evidenced
4 attainment of predefined, rigorous learning objectives that:
5 (1) are transferable; and
6 (2) qualify a student for advancement to subsequent
7 educational levels or competencies.
8 Sec. 2. As used in this chapter, "mastery based education"
9 means an innovative, learner centered approach to teaching and
10 learning that focuses on the mastery of specific skills or knowledge
11 areas rather than the amount of time spent in a classroom.
12 Sec. 3. As used in this chapter, "pilot program" refers to the
13 mastery based education pilot program established by section 4 of
14 this chapter.
15 Sec. 4. (a) The mastery based education pilot program is
16 established to support a school corporation or charter school that
17 is selected by the department under subsection (b) in implementing
18 mastery based education.
19 (b) The department:
20 (1) shall administer the pilot program; and
21 (2) may select school corporations and charter schools that
22 meet the requirements under this chapter to participate in the
23 pilot program.
24 Sec. 5. (a) To apply for participation in the pilot program, a
25 school corporation or charter school shall do the following:
26 (1) Apply on a form and in a manner established by the
27 department.
28 (2) Develop and submit a plan to the department that includes
29 the following:
30 (A) A description of the following:
31 (i) The educational programming the school corporation
32 or charter school intends to offer, including specific goals
33 and the measurable student outcomes to be obtained by
34 the school corporation or charter school.
35 (ii) How mastery based student performance will be
36 used, measured, evaluated, and reported by the school
37 corporation or charter school.
38 (iii) Any business, postsecondary educational institutions,
39 or community partners with which the school
40 corporation or charter school intends to work.
41 (B) If the school corporation or charter school intends to
42 suspend any requirements under IC 20-28 as listed in
ES 373—LS 7358/DI 143 15
1 section 8(a)(2) of this chapter or IC 20-29, the school
2 corporation's or charter school's criteria and goals for
3 teacher quality, training, and compensation.
4 (b) The department shall do the following:
5 (1) Subject to subdivision (2), approve or deny an application
6 and plan submitted by a school corporation or charter school
7 under this section.
8 (2) Approve an application and plan only if the department
9 determines that the plan:
10 (A) will promote innovative educational approaches to
11 student learning; and
12 (B) is likely to improve student performance and outcomes.
13 Sec. 6. If a school corporation or charter school participates in
14 the pilot program, the school corporation or charter school shall
15 post the school corporation's or charter school's plan approved by
16 the department under section 5 of this chapter on the school
17 corporation's or charter school's website.
18 Sec. 7. (a) The department may make reasonable requests for
19 information from a school corporation or charter school
20 participating in the pilot program for the purpose of assessing the
21 effectiveness of the plan.
22 (b) A school corporation or charter school shall respond to a
23 request for information under subsection (a) in a form, manner,
24 and frequency determined by the department.
25 Sec. 8. (a) Any of the following may be suspended for a school
26 corporation or charter school in accordance with the school
27 corporation's or charter school's plan approved under section 5 of
28 this chapter:
29 (1) Any statute or rule that may be suspended under
30 IC 20-26.5-2-3.
31 (2) Any provision under the following:
32 (A) IC 20-28-4.
33 (B) IC 20-28-11.5.
34 (C) IC 20-29.
35 (D) IC 20-30-2-2.
36 (E) IC 20-30-4.
37 (3) Subject to subsection (b), any provisions under the
38 statewide assessment program under IC 20-32-5.1.
39 (b) A statewide assessment program test requirement may not
40 be suspended under subsection (a)(3) unless the department has
41 received a waiver from the assessment requirements of the federal
42 Every Student Succeeds Act (ESSA) (20 U.S.C. 6311) and approval
ES 373—LS 7358/DI 143 16
1 for one (1) or more alternate assessments for school corporations
2 and charter schools participating in the pilot program.
3 (c) After a school corporation or charter school has participated
4 for at least three (3) years in the pilot program, the department
5 may:
6 (1) revoke the suspension of any statute or rule under
7 subsection (a) for the school corporation or charter school; or
8 (2) terminate the participation of the school corporation or
9 charter school in the pilot program;
10 if the department determines that the school corporation or
11 charter school has not met the specific goals and the measurable
12 student outcomes in the school corporation's or charter school's
13 plan approved under section 5 of this chapter.
14 Sec. 9. This chapter expires June 30, 2035.
15 SECTION 6. IC 20-25-17 IS ADDED TO THE INDIANA CODE
16 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
17 UPON PASSAGE]:
18 Chapter 17. Indianapolis Local Education Alliance
19 Sec. 1. As used in this chapter, "alliance" refers to the
20 Indianapolis local education alliance established by section 2 of this
21 chapter.
22 Sec. 2. (a) The Indianapolis local education alliance is
23 established.
24 (b) The alliance consists of the following nine (9) members:
25 (1) The superintendent of the school city or the
26 superintendent's designee.
27 (2) The mayor of a consolidated city or the mayor's designee.
28 (3) One (1) member appointed by the president of the board
29 who is not a member of the board.
30 (4) Four (4) members appointed by the mayor described in
31 subdivision (2), one (1) of whom is a representative of
32 business.
33 (5) Two (2) members appointed by the superintendent of the
34 school city as follows:
35 (A) A representative of parents who:
36 (i) reside; and
37 (ii) have students attending an innovation network
38 charter school (as defined in IC 20-25.7-3-6) located;
39 within the geographic boundaries of the school city.
40 (B) A representative of parents who:
41 (i) reside within the geographic boundaries of the school
42 city; and
ES 373—LS 7358/DI 143 17
1 (ii) have students who are enrolled in and attend a school
2 maintained and operated by the school city.
3 (c) The mayor or the mayor's designee under subsection (b)(2)
4 serves as the chairperson of the alliance. A quorum of the members
5 must be present for the alliance to take any official action. A
6 quorum consists of a majority of the members of the alliance. An
7 affirmative vote by a majority of the members present is needed
8 for the alliance to make a recommendation or take any official
9 action.
10 (d) The first meeting of the alliance must be held not later than
11 July 1, 2025.
12 (e) The alliance operates independently from the school city.
13 Sec. 3. (a) The alliance shall do the following:
14 (1) Conduct school facility assessments for all applicable
15 public school, including charter school, facilities located
16 within the geographic boundaries of the school city.
17 (2) Develop a facilities and transportation implementation
18 plan that includes the following components:
19 (A) A long term asset management and sustainability plan,
20 including a seat capacity target formula, that includes
21 establishing a local governing board as a taxing unit or
22 another sustainable revenue plan.
23 (B) Recommendations regarding additional school facility
24 structural changes necessary to achieve the desired result
25 for a collaborative system of schools that can serve all
26 students within the geographic boundaries of the school
27 city fairly.
28 (C) A process to approve or deny any levy requests related
29 to capital expenditures.
30 (D) A standardized template for revenue sharing
31 agreements and asset use agreements for all school
32 facilities and transportation assets within the geographic
33 boundaries of the school city.
34 (E) A method or way to address existing excess capacity in
35 school facilities.
36 (F) A method or way to increase collaboration between
37 schools, governmental entities, and community
38 organizations, including facilitating opportunities for
39 partnership with other governmental entities or local
40 nonprofit organizations to transform school facilities into
41 broader community assets for residents.
42 (G) Ensures the provision of uninterrupted transportation
ES 373—LS 7358/DI 143 18
1 services for homeless students or students in foster care as
2 provided by the McKinney-Vento Homeless Education
3 Assistance Improvements Act (42 U.S.C. 11431 et seq.).
4 (H) Best practices in facilities management and operations.
5 (I) A system to track qualitative and quantitative data to
6 gauge the success of the plan.
7 (J) A system to manage any school facility or
8 transportation related debt.
9 (K) Recommendations regarding purchasing and
10 maintenance plans and contracts with vendors, as needed.
11 (L) A summary of the school facility assessments for all
12 applicable school facilities and recommendations based on
13 the assessments.
14 (M) An approach in which schools located within the
15 geographic boundaries of the school city will participate or
16 opt into participation in the implementation plan and at
17 what service level the schools may participate or opt in.
18 (N) The participation of all students in a single enrollment
19 system.
20 (b) In developing the plan under subsection (a)(2), the alliance
21 shall consider additional flexibility and creativity regarding:
22 (1) what is considered a school facility, including
23 considerations surrounding colocation with other schools,
24 governmental entities, or community organizations; and
25 (2) ways to accommodate student needs throughout the school
26 day, including transportation:
27 (A) to and from school;
28 (B) for before and after school opportunities;
29 (C) for work based learning experiences;
30 (D) for extracurricular activities; and
31 (E) for specialized educational opportunities.
32 Sec. 4. The alliance may:
33 (1) contract with outside entities in developing the plan under
34 section 3 of this chapter; and
35 (2) include the following recommendations in the
36 implementation plan developed under section 3(a)(2) of this
37 chapter:
38 (A) The governance structure for a collaborative school
39 system.
40 (B) Opportunities for increased efficiency for the central
41 office of the school city.
42 (C) Future referendum planning.
ES 373—LS 7358/DI 143 19
1 (D) School consolidation.
2 (E) The expansion of high quality academic programming.
3 (F) Uniform school performance frameworks for all
4 schools within the collaborative school system.
5 (G) Special education policies.
6 Sec. 5. (a) This section does not apply to a proposed new charter
7 school if the organizer of the proposed new charter school
8 submitted to an authorizer on or before April 1, 2025, the proposal
9 to establish the new charter school.
10 (b) Beginning July 1, 2025, and ending December 31, 2025, a
11 charter may not be granted by an authorizer for a new charter
12 school located within the boundaries of the school city except by
13 the executive (as defined in IC 36-1-2-5) of a consolidated city.
14 Sec. 6. Not later than December 31, 2025, the alliance shall
15 submit the school facilities and transportation implementation plan
16 to the following:
17 (1) The secretary of education.
18 (2) The board.
19 (3) The mayor described in section 2(b)(2) of this chapter.
20 (4) The legislative council in an electronic format under
21 IC 5-14-6.
22 Sec. 7. This chapter expires March 30, 2026.
23 SECTION 7. IC 20-27-3-2, AS AMENDED BY P.L.43-2021,
24 SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2025]: Sec. 2. (a) The following nonvoting members shall
26 advise the voting members of the committee:
27 (1) A member of the Indiana Association of School Bus
28 Distributors selected by the executive committee of that
29 association.
30 (2) A member of the state police department selected by the state
31 police superintendent.
32 (3) A member of the Indiana Transportation Association selected
33 by the executive committee of that association.
34 (4) (3) A member of the Indiana Township Association selected
35 by the executive committee of that association.
36 (5) (4) A school business official appointed by the secretary of
37 education upon the recommendation of the Indiana Association
38 of School Business Officials.
39 (b) An individual is not qualified to serve as a nonvoting member
40 of the committee until proper credentials of the individual's
41 appointment have been filed with the chairperson of the committee.
42 Each nonvoting member shall be notified of all committee meetings
ES 373—LS 7358/DI 143 20
1 and may attend each meeting and offer advice to the voting members
2 of the committee.
3 SECTION 8. IC 20-28-5-12.5, AS AMENDED BY P.L.243-2023,
4 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 12.5. (a) The department shall grant an initial
6 practitioner license to an individual who:
7 (1) possesses a bachelor's degree from an accredited
8 postsecondary four (4) year institution;
9 (2) successfully completes an alternative teacher certification
10 program that includes:
11 (A) the required content training in the area in which the
12 individual seeks to be licensed;
13 (B) pedagogy training and an examination that is in
14 substantive alignment with nationally recognized pedagogical
15 standards and teaches effective:
16 (i) instructional delivery;
17 (ii) classroom management and organization;
18 (iii) assessment;
19 (iv) instructional design; and
20 (v) professional learning and leadership;
21 (C) successful demonstration of content area proficiency in an
22 examination that includes content area material in substantive
23 alignment with nationally recognized content area standards in
24 the areas that the individual is required to have a license to
25 teach;
26 (D) verification from a third party that regularly reviews
27 educational and professional examinations that the alternative
28 certification examination is equal to or greater in rigor than the
29 written examination under section 12 of this chapter;
30 (E) content within the curriculum that prepares teacher
31 candidates to use evidence based trauma informed classroom
32 instruction, including instruction in evidence based social
33 emotional learning classroom practices that are conducive to
34 supporting students who have experienced trauma that may
35 interfere with a student's academic functioning; and
36 (F) content within the curriculum that:
37 (i) beginning July 1, 2024, is aligned to the science of
38 reading; and
39 (ii) beginning July 1, 2024, prepares teacher candidates or
40 program participants who seek to obtain an elementary
41 generalist license that is valid for teaching in kindergarten
42 through grade 5 or an early childhood license that is valid
ES 373—LS 7358/DI 143 21
1 for teaching prekindergarten through grade 3 to obtain the
2 literacy endorsement required under section 19.7 of this
3 chapter;
4 (3) successfully completes a Praxis Subject Assessment; an
5 applicable teacher licensing exam as approved by the state
6 board;
7 (4) holds a valid cardiopulmonary resuscitation certification from
8 a provider approved by the department; and
9 (5) has attended youth suicide awareness and prevention training.
10 (b) The individual must complete a one (1) year practical experience
11 program during the individual's first year in the classroom when the
12 individual is employed as a full-time teacher. The provider must:
13 (1) provide the practical experience program at no cost to the state
14 or to the school corporation, charter school, or state accredited
15 nonpublic school; and
16 (2) as part of the practical instruction program, provide
17 instruction in:
18 (A) instructional design and planning;
19 (B) effective instructional delivery;
20 (C) classroom management and organization;
21 (D) effective use of assessment data;
22 (E) content in federal and Indiana special education laws; and
23 (F) required awareness, preparation, and understanding of:
24 (i) individualized education programs;
25 (ii) service plans developed under 511 IAC 7-34;
26 (iii) choice special education plans developed under 511
27 IAC 7-49; and
28 (iv) plans developed under Section 504 of the federal
29 Rehabilitation Act of 1973, 29 U.S.C. 794.
30 (c) An in-state alternative teacher certification program under
31 subsection (a)(2) must operate in accordance with the procedures and
32 program approval standards and requirements set by the department
33 and the state board for teacher education programs for the licensure of
34 teachers.
35 (d) An out-of-state alternative teacher certification program under
36 subsection (a)(2) must:
37 (1) currently operate in at least five (5) states; and
38 (2) have operated an alternative teacher certification program for
39 at least ten (10) years.
40 (e) An individual who receives an alternative teacher certification
41 under subsection (a)(2) is authorized to teach the subject and
42 educational level that the individual has successfully completed.
ES 373—LS 7358/DI 143 22
1 (f) An individual who receives an initial practitioner license under
2 this section shall be treated in the same manner as an individual who
3 receives an initial practitioner license after completing a traditional
4 teacher preparation program.
5 (g) An individual who graduates from an alternative teacher
6 certification program must be treated in the same manner as a
7 traditional teacher preparation program graduate during the transition
8 from an initial practitioner license to a practitioner license.
9 (h) An individual who receives an initial practitioner license under
10 this section may not teach a special education course for a special
11 education student for the period the individual maintains a license
12 under this section unless the individual is at least twenty-six (26) years
13 of age and employed in a school setting or with another community
14 organization, including a for-profit or nonprofit organization, to
15 provide care or instruction for a student with a physical, intellectual, or
16 developmental disability. However, an individual who receives an
17 initial practitioner license under this section may not be a teacher of
18 record for a special education student for the period the individual
19 maintains the initial practitioner license.
20 (i) A school corporation, charter school, or state accredited
21 nonpublic school shall submit a plan to the department if the school
22 corporation, charter school, or state accredited nonpublic school hires
23 one (1) or more individuals who have received an initial practitioner
24 license under this section. The plan must be submitted in a manner
25 prescribed by the department and must include a description of how the
26 school corporation, charter school, or state accredited nonpublic school
27 will, excluding the practical experience program described in
28 subsection (b), provide an individual who receives an initial
29 practitioner license under this section opportunities to obtain exposure
30 to classroom management and instructional techniques, including
31 meaningful exposure to special education. The plan is a public record.
32 (j) Not later than July 1, 2024, the department shall prepare a report
33 that shall be submitted to the general assembly in an electronic format
34 under IC 5-14-6. The report must contain the following information:
35 (1) Data showing how many teachers obtained an initial
36 practitioner license under this section.
37 (2) A description of the number of teachers who received an
38 initial practitioner license under this section who are currently
39 employed as a teacher by each:
40 (A) school corporation;
41 (B) charter school; or
42 (C) state accredited nonpublic school.
ES 373—LS 7358/DI 143 23
1 The description must include a breakdown of the subjects taught
2 by teachers who receive an initial practitioner license under this
3 section.
4 (3) A comparison of the Praxis Subject Assessment pass rates for
5 individuals who receive an initial practitioner license under this
6 section in comparison with the Praxis Subject Assessment pass
7 rates for teachers who obtained an initial practitioner license
8 using a different pathway to licensure.
9 (4) A description of how many teachers who received an initial
10 practitioner license under this section are rated as effective or
11 highly effective.
12 SECTION 9. IC 20-30-7-1, AS AMENDED BY P.L.5-2024,
13 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2025]: Sec. 1. (a) Except as provided in subsection (c), the
15 state board may prescribe a program of summer school education for
16 public schools. Subject to subsection (b), the state board shall adopt
17 rules under IC 4-22-2 to provide for:
18 (1) summer school programs; and
19 (2) the state distribution formula for any money appropriated by
20 the general assembly for summer school education to allow for
21 the reimbursement funding for approved summer school
22 programs on a per student basis, which may include
23 differentiated funding based on the course the student is
24 enrolled in and the length of time of the summer school
25 program.
26 (A) instructional costs; and
27 (B) costs of tuition for an applicable online summer school
28 course.
29 (b) The state board shall give priority reimbursement which must be
30 exempt from the distribution formula adopted by the state board under
31 subsection (a), for all eligible costs for summer school courses that
32 include curriculum aligned with the science of reading designated by
33 the department to support students in:
34 (1) grade 2 who are at risk of not being reading proficient; and
35 (2) grade 3 who are not reading proficient;
36 as indicated on the determinant evaluation of reading skills approved
37 by the state board under IC 20-32-8.5-2.
38 (c) A state accredited nonpublic school and an eligible school (as
39 defined in IC 20-51-1-4.7) shall be eligible for summer school funding
40 for courses that include curriculum aligned with the science of reading
41 designated by the department to support students in:
42 (1) grade 2 who are at risk of not being reading proficient; and
ES 373—LS 7358/DI 143 24
1 (2) grade 3 who are not reading proficient;
2 as indicated on the determinant evaluation of reading skills approved
3 by the state board under IC 20-32-8.5-2.
4 SECTION 10. IC 20-32-8.5-2, AS AMENDED BY THE
5 TECHNICAL CORRECTIONS BILL OF THE 2025 GENERAL
6 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2025]: Sec. 2. (a) Except as provided in subsection (b), the
8 plan required by this chapter must include the following:
9 (1) Reading skill standards for grade 1 through grade 3.
10 (2) A method for making determinant evaluations by grade 3 that
11 remedial action is required for a student, including:
12 (A) beginning with evaluations administered during the
13 2024-2025 school year, and except as provided in subsection
14 (c), retention of the student in grade 3 if the student has not
15 achieved a passing score on the determinant evaluation of
16 reading skills approved by the state board after the student has
17 had an opportunity to retake the determinant evaluation in the
18 summer; and
19 (B) the use of curricular materials and supplemental materials
20 aligned to the science of reading that are designed to address
21 deficiencies in reading;
22 after other methods of remediation have been evaluated or used,
23 or both, if reading skills are below the standard. Appropriate
24 consultation with parents or guardians must be part of the plan.
25 (3) A requirement that schools notify a student's parent of the
26 following:
27 (A) The student's assessment results regarding skill level in:
28 (i) phonemic awareness;
29 (ii) phonics;
30 (iii) fluency;
31 (iv) vocabulary; and
32 (v) comprehension.
33 (B) The student's assessment results on the determinant
34 evaluation of reading skills approved by the state board.
35 (C) Any intervention provided to the student or any remedial
36 action taken.
37 (4) A requirement that schools monitor the progress of students
38 who failed to achieve a valid passing score on the:
39 (A) determinant evaluation of reading skills approved by the
40 state board; or
41 (B) statewide assessment program test.
42 (5) A requirement that schools provide reading instruction that
ES 373—LS 7358/DI 143 25
1 includes a core reading program aligned with the science of
2 reading to all students in kindergarten through grade 8.
3 (6) A requirement for the administration of the determinant
4 evaluation of reading skills approved by the state board to
5 students in grade 2.
6 (7) A requirement that all students take the determinant
7 evaluation of reading skills approved by the state board until the
8 student:
9 (A) receives a passing score, regardless of the student's grade
10 level; or
11 (B) enters grade 7.
12 (8) A requirement that a school report the following to the
13 department:
14 (A) The literacy interventions that will be used for students in
15 grade 2 who are at risk of not being reading proficient and
16 students in grade 3 who do not achieve a valid passing score
17 on the determinant evaluation of reading skills approved by
18 the state board.
19 (B) The literacy interventions in use before the adoption of the
20 plan for students in grade 2 who are at risk of not being
21 reading proficient and students in grade 3 who do not achieve
22 a valid passing score on the determinant evaluation of reading
23 skills approved by the state board.
24 (C) The literacy interventions in use before the adoption of the
25 plan for students who do not achieve a valid passing score on
26 the determinant evaluation of reading skills approved by the
27 state board.
28 (D) The number of students being served by the interventions
29 described in clauses (B) and (C).
30 (E) The cost of providing the interventions described in
31 clauses (B) and (C).
32 (F) Any other information requested by the department.
33 (9) Requirements for a school in which fewer than seventy
34 percent (70%) of students of the school achieved a valid passing
35 score on the determinant evaluation of reading skills approved by
36 the state board that must include the following:
37 (A) Use of curriculum that is:
38 (i) based on the science of reading; and
39 (ii) age appropriate; and
40 (ii) (iii) approved by the department.
41 (B) Employment of the following:
42 (i) Before July 1, 2025, an instructional coach who is trained
ES 373—LS 7358/DI 143 26
1 in the science of reading, as determined by the department.
2 This item expires January 1, 2026.
3 (ii) After June 30, 2025, an instructional coach with a
4 literacy related endorsement who is trained in the science of
5 reading.
6 (C) Use of only benchmark, formative, interim, or similar
7 assessments that:
8 (i) show alignment with Indiana's academic standards; and
9 (ii) are approved by the department.
10 (D) Use of a screener procured under IC 20-32-5.1-17(j).
11 (10) The fiscal impact of each component of the plan, if any. In
12 determining whether a component has a fiscal impact,
13 consideration shall be given to whether the component will
14 increase costs to the state or a school corporation or require the
15 state or school corporation to reallocate resources.
16 (b) A school may receive a waiver of the requirements provided in
17 511 IAC 6.2-3.1-4(a)(2) if the state board approves an alternative
18 reading plan provided by the school.
19 (c) A student who would otherwise be subject to retention in grade
20 3 under the plan is not subject to the retention requirement only if the
21 student meets one (1) of the following criteria:
22 (1) The student was subject to retention and has been retained in
23 grade 3 for one (1) school year.
24 (2) The student has an intellectual disability or the student's
25 individualized education program specifies that retention is not
26 appropriate, and the student's case conference committee has
27 determined that promotion to another grade is appropriate.
28 (3) The student is an English learner who has received services
29 for fewer than two (2) years and a committee consisting of:
30 (A) the student's parent;
31 (B) a building level administrator or designee;
32 (C) a classroom teacher of service;
33 (D) an English learner teacher of record, if one exists; and
34 (E) an English learner district administrator, if one exists;
35 determines that promotion is appropriate based on the
36 implementation of research based instructional practices outlined
37 in the student's individual learning plan.
38 (4) The student received a score of proficient or above proficient
39 in grade 3 math on the statewide summative assessment.
40 (5) The student:
41 (A) has received intensive intervention as determined by the
42 department in reading for two (2) or more years; and
ES 373—LS 7358/DI 143 27
1 (B) was retained more than one (1) time throughout
2 kindergarten, grade 1, or grade 2.
3 (d) A student who is not subject to the retention requirement as
4 provided under subsection (c) must be provided with additional
5 reading instruction that is aligned with the science of reading until the
6 student achieves a passing score on the determinant evaluation of
7 reading skills approved by the state board.
8 (e) This subsection applies after June 30, 2024. Before October 1 of
9 each school year, the department shall:
10 (1) identify each incoming student (as defined in section 0.7 of
11 this chapter) enrolled in kindergarten in a school in Indiana; and
12 (2) notify the parent or guardian of the student of the retention
13 requirement under this chapter for grade 3 students who do not
14 achieve a passing score on the Indiana reading evaluation and
15 determination (IRead3).
16 (f) The department shall establish a standard reporting process and
17 reporting window for schools to report students who qualify for an
18 exemption under subsection (c).
19 SECTION 11. IC 20-35-2-1, AS AMENDED BY P.L.162-2024,
20 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2025]: Sec. 1. (a) There is established under the state board
22 department a division of special education. The division shall exercise
23 all the power and duties set out in this chapter, IC 20-35-3 through
24 IC 20-35-6, and IC 20-35-8.
25 (b) The governor secretary of education shall appoint upon the
26 recommendation of the secretary of education, a director of special
27 education who serves at the pleasure of the governor. secretary of
28 education. The amount of compensation of the director shall be
29 determined by the budget agency with the approval of the governor.
30 The director has the following duties:
31 (1) To shall do the following:
32 (A) (1) Have general supervision of special education
33 programs and services, including those conducted by school
34 corporations, charter schools, the Indiana School for the Blind
35 and Visually Impaired, the Indiana School for the Deaf, the
36 department of correction, and the division of mental health and
37 addiction to ensure compliance with federal and state special
38 education laws and rules.
39 (B) (2) Take appropriate action to ensure school corporations,
40 charter schools, and the department remain eligible for federal
41 special education funds.
42 (C) (3) Oversee the training of hearing officers and establish
ES 373—LS 7358/DI 143 28
1 guidelines as described in IC 20-35-14-5.
2 (2) With the consent of the secretary of education and the budget
3 agency, to appoint and determine salaries for any assistants and
4 other personnel needed to enable the director to accomplish the
5 duties of the director's office.
6 SECTION 12. An emergency is declared for this act.
ES 373—LS 7358/DI 143 29
COMMITTEE REPORT
Mr. President: The Senate Committee on Education and Career
Development, to which was referred Senate Bill No. 373, 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 7, line 25, delete "basis." and insert "basis, which may
include differentiated funding based on the course the student is
enrolled in and the length of time of the summer school program.".
and when so amended that said bill do pass.
(Reference is to SB 373 as introduced.)
RAATZ, Chairperson
Committee Vote: Yeas 11, Nays 0.
_____
COMMITTEE REPORT
Mr. Speaker: Your Committee on Education, to which was referred
Senate Bill 373, has had the same under consideration and begs leave
to report the same back to the House with the recommendation that said
bill be amended as follows:
Page 3, between lines 25 and 26, begin a new paragraph and insert:
"SECTION 3. IC 20-20-52 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 52. Centralized School Facilities Pilot Program and
Local Boards
Sec. 1. As used in this chapter, "local board" refers to a:
(1) local centralized school facilities board established under
section 6(a) of this chapter; or
(2) if applicable, local centralized school facilities and
transportation board established under section 6(e) of this
chapter.
Sec. 2. As used in this chapter, "pilot program" means the
centralized school facilities pilot program established by section 4
of this chapter.
Sec. 3. As used in this chapter, "school" means a:
(1) charter school; or
ES 373—LS 7358/DI 143 30
(2) nonpublic school with at least one (1) employee.
Sec. 4. (a) The centralized school facilities pilot program is
established to provide innovative approaches concerning the use,
operation, and management of school facilities to promote:
(1) enhanced learning environments;
(2) unique learning opportunities; and
(3) improved student academic and health outcomes;
in accordance with the plan submitted to the general assembly by
the secretary of education under IC 20-19-3-32.
(b) The pilot program is established for a three (3) year period
consisting of the 2026-2027, 2027-2028, and 2028-2029 school
years.
Sec. 5. (a) A school corporation or school, in partnership with
other school corporations, schools, or both other school
corporations and schools, may apply to the department to
participate in the pilot program.
(b) The department:
(1) may approve not more than a total of three (3)
applications under this section to participate in the pilot
program; and
(2) shall establish the application process and criteria to
participate in the pilot program.
(c) The criteria established under subsection (b)(2) must require
that school corporations and schools include information
concerning the geographic boundaries of the area to which the
application to participate in the pilot program applies.
Sec. 6. (a) Except as provided under subsection (e), not later
than October 31, 2025, a local centralized school facilities board is
established for participating school corporations and schools.
(b) Each local board must be independent from any school
corporation and school.
(c) The local board consists of seven (7) members who:
(1) are proportionately appointed as either representatives of
participating school corporations, charter schools, or
nonpublic schools described in section 3(2) of this chapter
based on:
(A) the total pupil enrollment of the participating school
corporations;
(B) the total pupil enrollment of participating charter
schools; and
(C) the total pupil enrollment of participating nonpublic
schools;
ES 373—LS 7358/DI 143 31
that are partnering under the pilot program; and
(2) are members of the:
(A) governing body of a participating school corporation;
(B) charter school board of a participating charter school;
or
(C) equivalent of a governing body for a participating
nonpublic school;
described in subdivision (1).
(d) Each local board must collaborate with individuals or
entities that have expertise in the following:
(1) Facility management, construction, or real estate.
(2) Public finance or public debt issuance.
(3) Demographic analysis and urban planning.
(4) Organizational effectiveness, operations management, and
implementing best practices.
(5) Government contracts.
(6) Budget development and oversight.
(e) If a school corporation or school, in partnership with other
school corporations, schools, or both other school corporations and
schools, receives approval to participate in the:
(1) pilot program; and
(2) student transportation pilot program under IC 20-20-53;
the school corporation or schools may elect to establish, not later
than October 31, 2025, one (1) local centralized school facilities and
transportation board consisting of the members described in
subsection (c) that has the powers and duties and is subject to the
requirements of a local centralized school facilities board under
this chapter and local student transportation board under
IC 20-20-53.
Sec. 7. Notwithstanding any other state law or rule, each local
board shall, during the pilot program, provide oversight and
management of school facilities with a focus on best use and
upkeep of assets funded by taxpayers.
Sec. 8. (a) Each local board shall create and implement a pilot
program plan that includes measures to:
(1) determine the:
(A) term lengths of the members; and
(B) member replacement processes;
for the local board;
(2) conduct school facility assessments for all applicable
school facilities;
(3) implement a process to approve or deny any levy requests
ES 373—LS 7358/DI 143 32
related to capital expenditures;
(4) implement a process to receive and distribute tax revenue,
as needed;
(5) improve the health and safety of students and teachers;
(6) allow for additional flexibility and creativity in terms of
what is considered a school facility, including considerations
surrounding colocation with other schools, governmental
entities, or community organizations;
(7) enter into revenue sharing agreements and asset use
agreements for all school facilities within the geographic
boundaries described in the application under section 5(c) of
this chapter for the three (3) year period of the pilot program;
(8) address any existing excess capacity in school facilities;
(9) inspire opportunities for partnership with other
governmental entities or local nonprofit organizations to
transform school facilities into broader community assets for
residents;
(10) implement best practices in facilities management and
operations;
(11) track qualitative and quantitative data to gauge the
success of the pilot program;
(12) collect and report data in a manner prescribed by the
department regarding school facilities included in the pilot
program;
(13) manage any school facility related debt for the duration
of the pilot program; and
(14) implement a maintenance plan and contract with
vendors, as needed, for the duration of the pilot program.
(b) Not later than July 1, 2028, each local board shall develop
and submit to the department an implementation plan that
includes the following:
(1) Whether at the conclusion of the pilot program the:
(A) participating school corporations and schools, as
applicable, elect to continue operating with a local board;
and
(B) local board established under section 6 of this chapter
should be maintained or a new local board should be
established.
(2) If a new local board should be established, the following
components:
(A) The appointment of members to the new local board,
including the appointing authority for the members.
ES 373—LS 7358/DI 143 33
(B) The term lengths of the members.
(C) The member replacement process.
(3) A process to ensure that the powers and duties under this
chapter are maintained by the local board or transferred to
the new local board after completion of the pilot program.
(4) The transfer of all assets and related funding regarding
school facilities to the local board or new local board.
(5) The development and implementation of a long term asset
management and sustainability plan that includes establishing
the local board or new local board as a taxing unit.
Sec. 9. Notwithstanding any other state law or rule, beginning
with the 2026-2027 school year, each local board established under
section 6 of this chapter:
(1) shall exercise the full powers and duties provided under
this chapter; and
(2) has the authority to approve or deny any property tax levy
approved by the governing bodies of the applicable
participating school corporations.
Sec. 10. Each local board may contract with outside individuals
and entities to create and implement the pilot program plan
described in section 8(a) of this chapter.
Sec. 11. Subject to any agreement entered into by a school
corporation or school, a school corporation or school may at any
time opt out of participating in the pilot program if the school
corporation or school provides notice to all school corporations
and schools that the school corporation or school partnered with
under this chapter at least one (1) year before the school
corporation or school intends to terminate the partnership and its
participation under this chapter.
Sec. 12. Not later than November 1, 2027, the department of
local government finance, in consultation with the department,
shall do the following:
(1) Prepare a report that includes recommendations
regarding legislation and procedures to transfer the duties
and powers of a participating school corporation to a local
board or new local board as described in section 8(b) of this
chapter.
(2) Submit the report to the legislative council in an electronic
format under IC 5-14-6.
Sec. 13. Not later than November 1, 2028, the department shall
do the following:
(1) Prepare a report that includes the following:
ES 373—LS 7358/DI 143 34
(A) A summary regarding the:
(i) school corporations and schools participating in the
pilot program;
(ii) implementation of the pilot program by each local
board;
(iii) results and outcomes regarding the pilot program;
and
(iv) implementation plans submitted by the local boards
under section 8(b) of this chapter.
(B) Any recommendations regarding:
(i) legislation or procedures to further carry out the
purposes of this chapter and an implementation plan
submitted under section 8(b) of this chapter; and
(ii) whether to extend the pilot program to additional
applicants.
(C) A plan to adopt best practices from the pilot program
statewide.
(2) Submit the plan to the legislative council in an electronic
format under IC 5-14-6.
Sec. 14. The department shall waive any state law or rule
requirement necessary to exempt participating school corporations
and schools from requirements for purposes of participation in the
pilot program under this chapter.
Sec. 15. This chapter shall be liberally construed to effect the
purposes of this chapter.
Sec. 16. Except as otherwise specifically provided by law, to the
extent the provisions of this chapter are inconsistent with the
provisions of any other general, special, or local law, the provisions
of this chapter are controlling, and compliance with this chapter
shall be treated as compliance with the conflicting law.
SECTION 4. IC 20-20-53 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 53. Student Transportation Pilot Program and Local
Boards
Sec. 1. As used in this chapter, "local board" refers to a:
(1) local student transportation board established under
section 6(a) of this chapter; or
(2) if applicable, local centralized school facilities and
transportation board established under section 6(e) of this
chapter.
Sec. 2. As used in this chapter, "pilot program" refers to the
ES 373—LS 7358/DI 143 35
student transportation pilot program established by section 4 of
this chapter.
Sec. 3. As used in this chapter, "school" means a:
(1) charter school; or
(2) nonpublic school with at least one (1) employee.
Sec. 4. (a) The student transportation pilot program is
established to provide transportation to all students attending:
(1) school corporations;
(2) charter schools; and
(3) nonpublic schools with at least one (1) employee;
within the geographic boundaries described in the application
under section 5(c) of this chapter.
(b) The pilot program is established for a three (3) year period
consisting of the 2026-2027, 2027-2028, and 2028-2029 school
years.
Sec. 5. (a) A school corporation or school, in partnership with
other school corporations, schools, or both school corporations and
schools, may apply to the department to participate in the pilot
program.
(b) The department:
(1) may approve not more than a total of three (3)
applications under this section to participate in the pilot
program; and
(2) shall establish the application process and criteria to
participate in the pilot program.
(c) The criteria established under subsection (b)(2) must require
that school corporations and schools include information
concerning the geographic boundaries of the area to which the
application to participate in the pilot program applies.
Sec. 6. (a) Except as provided under subsection (e), not later
than October 31, 2025, a local student transportation board is
established for participating school corporations and schools.
(b) Each local board must be independent from any school
corporation and school.
(c) The local board consists of seven (7) members who:
(1) are proportionately appointed as either representatives of
participating school corporations, charter schools, or
nonpublic schools described in section 3(2) of this chapter
based on:
(A) the total pupil enrollment of the participating school
corporations;
(B) the total pupil enrollment of participating charter
ES 373—LS 7358/DI 143 36
schools; and
(C) the total pupil enrollment of participating nonpublic
schools;
that are partnering under the pilot program; and
(2) are members of the:
(A) governing body of a participating school corporation;
(B) charter school board of a participating charter school;
or
(C) equivalent of a governing body for a participating
nonpublic school;
described in subdivision (1).
(d) Each local board must collaborate with individuals or
entities that have expertise in the following:
(1) Transportation logistics, particularly involving movement
of passengers.
(2) Finance and business.
(3) Organizational effectiveness, operations management, and
implementing best practices.
(4) Government contracts.
(5) Budget development and oversight.
(e) If a school corporation or school, in partnership with other
school corporations, schools, or both other school corporations and
schools, receives approval to participate in the:
(1) pilot program; and
(2) centralized school facilities pilot program under
IC 20-20-52;
the school corporation or schools may elect to establish, not later
than October 31, 2025, one (1) local centralized school facilities and
transportation board that has the powers and duties and is subject
to the requirements of a local centralized school facilities board
under IC 20-20-52 and local student transportation board under
this chapter.
Sec. 7. Notwithstanding any other state law or rule, each local
board shall be responsible for the oversight and management of the
transportation of students described in section 4 of this chapter in
a safe and efficient manner in accordance with the plan submitted
to the general assembly by the secretary of education under
IC 20-19-3-33.
Sec. 8. (a) Each local board shall create and implement a pilot
program plan that includes measures to:
(1) determine the:
(A) term lengths of the members; and
ES 373—LS 7358/DI 143 37
(B) member replacement processes;
for the local board;
(2) allow for additional flexibility and creativity to
accommodate student needs throughout the school day,
including transportation:
(A) to and from school;
(B) for before and after school opportunities;
(C) for work based learning experiences;
(D) for extracurricular activities; and
(E) for specialized educational opportunities;
(3) improve safety and efficiency for students;
(4) increase collaboration between school corporations,
schools, governmental entities, and community organizations;
(5) track qualitative and quantitative data to gauge the
success of the pilot program;
(6) collect and report data in a manner prescribed by the
department regarding the pilot program;
(7) provide uninterrupted transportation services for
homeless students or students in foster care as provided by
the McKinney-Vento Homeless Education Assistance
Improvements Act (42 U.S.C. 11431 et seq.);
(8) inspire opportunities for public-private partnerships or
partnerships with other governmental entities or local
nonprofit organizations;
(9) enter into revenue sharing agreements and asset use
agreements with participating school corporations and
schools for the duration of the three (3) year period of the
pilot program;
(10) manage any transportation related debt for the three (3)
year period of the pilot program; and
(11) implement purchasing and maintenance plans and
contracts with vendors, as needed, for the three (3) year
period of the pilot program.
(b) Not later than July 1, 2028, each local board shall develop
and submit to the department an implementation plan that
includes the following:
(1) Whether at the conclusion of the pilot program the:
(A) participating school corporations and schools, as
applicable, elect to continue operating with a local board;
and
(B) local board established under section 6 of this chapter
should be maintained or a new local board should be
ES 373—LS 7358/DI 143 38
established.
(2) If a new local board should be established, the following
components:
(A) The appointment of members to the new local board,
including the appointing authority for the members.
(B) The term lengths of the members.
(C) The member replacement process.
(3) A process to ensure that the powers and duties under this
chapter are maintained by the local board or transferred to
the new local board after completion of the pilot program.
(4) The transfer of all assets and related funding regarding
school transportation to the local board or new local board.
(5) The development and implementation of a long term asset
management and sustainability plan that includes establishing
the local board or new local board as a taxing unit.
Sec. 9. Notwithstanding any other state law or rule, beginning
with the 2026-2027 school year, each local board established under
section 6 of this chapter:
(1) shall exercise the full powers and duties provided under
this chapter, including providing transportation services to
students described in section 4 of this chapter; and
(2) has the authority to approve or deny any property tax levy
approved by the governing bodies of the applicable
participating school corporations.
Sec. 10. Each local board may contract with outside entities to
create and implement the pilot program plan described in section
8(a) of this chapter.
Sec. 11. Subject to any agreement entered into by a school
corporation or school, a school corporation or school may at any
time opt out of participating in the pilot program if the school
corporation or school provides notice to all school corporations
and schools that the school corporation or school partnered with
under this chapter at least one (1) year before the school
corporation or school intends to terminate the partnership and its
participation under this chapter.
Sec. 12. Not later than November 1, 2027, the department of
local government finance, in consultation with the department,
shall do the following:
(1) Prepare a report that includes recommendations
regarding legislation and procedures to transfer the duties
and powers of a participating school corporation to a local
board or new local board as described in section 8(b) of this
ES 373—LS 7358/DI 143 39
chapter.
(2) Submit the report to the legislative council in an electronic
format under IC 5-14-6.
Sec. 13. Not later than November 1, 2028, the department shall
do the following:
(1) Prepare a report that includes the following:
(A) A summary regarding the:
(i) school corporations and schools participating in the
pilot program;
(ii) implementation of the pilot program by each local
board;
(iii) results and outcomes regarding the pilot program;
and
(iv) implementation plans submitted by the local boards
under section 8(b) of this chapter.
(B) Any recommendations regarding:
(i) legislation or procedures to further carry out the
purposes of this chapter and an implementation plan
submitted under section 8(b) of this chapter; and
(ii) whether to extend the pilot program to additional
applicants.
(C) A plan to adopt best practices from the pilot program
statewide.
(2) Submit the plan to the legislative council in an electronic
format under IC 5-14-6.
Sec. 14. The department shall waive any state law or rule
requirement necessary to exempt participating school corporations
and schools from requirements for purposes of participation in the
pilot program under this chapter.
Sec. 15. This chapter shall be liberally construed to effect the
purposes of this chapter.
Sec. 16. Except as otherwise specifically provided by law, to the
extent the provisions of this chapter are inconsistent with the
provisions of any other general, special, or local law, the provisions
of this chapter are controlling, and compliance with this chapter
shall be treated as compliance with the conflicting law.
SECTION 5. IC 20-20-54 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 54. Mastery Based Education Pilot Program
Sec. 1. As used in this chapter, "mastery" means evidenced
attainment of predefined, rigorous learning objectives that:
ES 373—LS 7358/DI 143 40
(1) are transferable; and
(2) qualify a student for advancement to subsequent
educational levels or competencies.
Sec. 2. As used in this chapter, "mastery based education"
means an innovative, learner centered approach to teaching and
learning that focuses on the mastery of specific skills or knowledge
areas rather than the amount of time spent in a classroom.
Sec. 3. As used in this chapter, "pilot program" refers to the
mastery based education pilot program established by section 4 of
this chapter.
Sec. 4. (a) The mastery based education pilot program is
established to support a school corporation or charter school that
is selected by the department under subsection (b) in implementing
mastery based education.
(b) The department:
(1) shall administer the pilot program; and
(2) may select school corporations and charter schools that
meet the requirements under this chapter to participate in the
pilot program.
Sec. 5. (a) To apply for participation in the pilot program, a
school corporation or charter school shall do the following:
(1) Apply on a form and in a manner established by the
department.
(2) Develop and submit a plan to the department that includes
the following:
(A) A description of the following:
(i) The educational programming the school corporation
or charter school intends to offer, including specific goals
and the measurable student outcomes to be obtained by
the school corporation or charter school.
(ii) How mastery based student performance will be
used, measured, evaluated, and reported by the school
corporation or charter school.
(iii) Any business, postsecondary educational institutions,
or community partners with which the school
corporation or charter school intends to work.
(B) If the school corporation or charter school intends to
suspend any requirements under IC 20-28 as listed in
section 8(a)(2) of this chapter or IC 20-29, the school
corporation's or charter school's criteria and goals for
teacher quality, training, and compensation.
(b) The department shall do the following:
ES 373—LS 7358/DI 143 41
(1) Subject to subdivision (2), approve or deny an application
and plan submitted by a school corporation or charter school
under this section.
(2) Approve an application and plan only if the department
determines that the plan:
(A) will promote innovative educational approaches to
student learning; and
(B) is likely to improve student performance and outcomes.
Sec. 6. If a school corporation or charter school participates in
the pilot program, the school corporation or charter school shall
post the school corporation's or charter school's plan approved by
the department under section 5 of this chapter on the school
corporation's or charter school's website.
Sec. 7. (a) The department may make reasonable requests for
information from a school corporation or charter school
participating in the pilot program for the purpose of assessing the
effectiveness of the plan.
(b) A school corporation or charter school shall respond to a
request for information under subsection (a) in a form, manner,
and frequency determined by the department.
Sec. 8. (a) Any of the following may be suspended for a school
corporation or charter school in accordance with the school
corporation's or charter school's plan approved under section 5 of
this chapter:
(1) Any statute or rule that may be suspended under
IC 20-26.5-2-3.
(2) Any provision under the following:
(A) IC 20-28-3.
(B) IC 20-28-4.
(C) IC 20-28-7.5.
(D) IC 20-28-8.
(E) IC 20-28-9.
(F) IC 20-28-11.5.
(G) IC 20-28-12.
(H) IC 20-29.
(I) IC 20-30-2-2.
(J) IC 20-30-4.
(b) After a school corporation or charter school has participated
for at least three (3) years in the pilot program, the department
may:
(1) revoke the suspension of any statute or rule under
subsection (a) for the school corporation or charter school; or
ES 373—LS 7358/DI 143 42
(2) terminate the participation of the school corporation or
charter school in the pilot program;
if the department determines that the school corporation or
charter school has not met the specific goals and the measurable
student outcomes in the school corporation's or charter school's
plan approved under section 5 of this chapter.
Sec. 9. This chapter expires June 30, 2035.
SECTION 6. IC 20-25-17 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 17. Indianapolis Local Education Alliance
Sec. 1. As used in this chapter, "alliance" refers to the
Indianapolis local education alliance established by section 2 of this
chapter.
Sec. 2. (a) The Indianapolis local education alliance is
established.
(b) The alliance consists of the following nine (9) members:
(1) The superintendent of the school city or the
superintendent's designee.
(2) The mayor of a consolidated city or the mayor's designee.
(3) One (1) member appointed by the president of the board
who is not a member of the board.
(4) Four (4) members appointed by the mayor described in
subdivision (2), one (1) of whom is a representative of
business.
(5) Two (2) members appointed by the superintendent of the
school city as follows:
(A) A representative of parents who:
(i) reside; and
(ii) have students attending an innovation network
charter school (as defined in IC 20-25.7-3-6) located;
within the geographic boundaries of the school city.
(B) A representative of parents who:
(i) reside within the geographic boundaries of the school
city; and
(ii) have students who are enrolled in and attend a school
maintained and operated by the school city.
(c) The mayor or the mayor's designee under subsection (b)(2)
serves as the chairperson of the alliance. A quorum of the members
must be present for the alliance to take any official action. A
quorum consists of a majority of the members of the alliance. An
affirmative vote by a majority of the members present is needed
ES 373—LS 7358/DI 143 43
for the alliance to make a recommendation or take any official
action.
(d) The first meeting of the alliance must be held not later than
July 1, 2025.
(e) The alliance operates independently from the school city.
Sec. 3. (a) The alliance shall do the following:
(1) Conduct school facility assessments for all applicable
public school, including charter school, facilities located
within the geographic boundaries of the school city.
(2) Develop a facilities and transportation implementation
plan that includes the following components:
(A) A long term asset management and sustainability plan,
including a seat capacity target formula, that includes
establishing a local governing board as a taxing unit or
another sustainable revenue plan.
(B) Recommendations regarding additional school facility
structural changes necessary to achieve the desired result
for a collaborative system of schools that can serve all
students within the geographic boundaries of the school
city fairly.
(C) A process to approve or deny any levy requests related
to capital expenditures.
(D) A standardized template for revenue sharing
agreements and asset use agreements for all school
facilities and transportation assets within the geographic
boundaries of the school city.
(E) A method or way to address existing excess capacity in
school facilities.
(F) A method or way to increase collaboration between
schools, governmental entities, and community
organizations, including facilitating opportunities for
partnership with other governmental entities or local
nonprofit organizations to transform school facilities into
broader community assets for residents.
(G) Ensures the provision of uninterrupted transportation
services for homeless students or students in foster care as
provided by the McKinney-Vento Homeless Education
Assistance Improvements Act (42 U.S.C. 11431 et seq.).
(H) Best practices in facilities management and operations.
(I) A system to track qualitative and quantitative data to
gauge the success of the plan.
(J) A system to manage any school facility or
ES 373—LS 7358/DI 143 44
transportation related debt.
(K) Recommendations regarding purchasing and
maintenance plans and contracts with vendors, as needed.
(L) A summary of the school facility assessments for all
applicable school facilities and recommendations based on
the assessments.
(M) An approach in which schools located within the
geographic boundaries of the school city will participate or
opt into participation in the implementation plan and at
what service level the schools may participate or opt in.
(N) The participation of all students in a single enrollment
system.
(b) In developing the plan under subsection (a)(2), the alliance
shall consider additional flexibility and creativity regarding:
(1) what is considered a school facility, including
considerations surrounding colocation with other schools,
governmental entities, or community organizations; and
(2) ways to accommodate student needs throughout the school
day, including transportation:
(A) to and from school;
(B) for before and after school opportunities;
(C) for work based learning experiences;
(D) for extracurricular activities; and
(E) for specialized educational opportunities.
Sec. 4. The alliance may:
(1) contract with outside entities in developing the plan under
section 3 of this chapter; and
(2) include the following recommendations in the
implementation plan developed under section 3(a)(2) of this
chapter:
(A) The governance structure for a collaborative school
system.
(B) Opportunities for increased efficiency for the central
office of the school city.
(C) Future referendum planning.
(D) School consolidation.
(E) The expansion of high quality academic programming.
(F) Uniform school performance frameworks for all
schools within the collaborative school system.
(G) Special education policies.
Sec. 5. (a) This section does not apply to a proposed new charter
school if the organizer of the proposed new charter school
ES 373—LS 7358/DI 143 45
submitted to an authorizer on or before April 1, 2025, the proposal
to establish the new charter school.
(b) Beginning July 1, 2025, and ending December 31, 2025, a
charter may not be granted by an authorizer for a new charter
school located within the boundaries of the school city except by
the executive (as defined in IC 36-1-2-5) of a consolidated city.
Sec. 6. Not later than December 31, 2025, the alliance shall
submit the school facilities and transportation implementation plan
to the following:
(1) The secretary of education.
(2) The board.
(3) The mayor described in section 2(b)(2) of this chapter.
(4) The legislative council in an electronic format under
IC 5-14-6.
Sec. 7. This chapter expires March 30, 2026.".
Page 12, delete lines 9 through 21, begin a new paragraph and
insert:
"SECTION 14. An emergency is declared for this act.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 373 as printed January 24, 2025.)
BEHNING
Committee Vote: yeas 9, nays 3.
_____
HOUSE MOTION
Mr. Speaker: I move that Engrossed Senate Bill 373 be amended to
read as follows:
Page 5, delete lines 41 through 42, begin a new line block indented
and insert:
"(3) establish a process for the transfer to and receipt of
funds, as applicable, by the local board from the participating
school corporations and schools;
(4) accept and use donations, gifts, or bequests for the
purposes of this chapter;".
Page 6, delete lines 1 and 2.
Page 7, line 13, after "under" insert "the pilot program plan
ES 373—LS 7358/DI 143 46
created under section 8(a) of".
Page 7, delete lines 15 through 17, begin a new line block indented
and insert:
"(2) shall make recommendations regarding property tax
levies approved by the governing bodies of the applicable
participating school corporations.".
Page 8, line 17, delete "plan" and insert "report".
Page 11, delete lines 28 through 29, begin a new line block indented
and insert:
"(10) establish a process for the transfer to and receipt of
funds, as applicable, by the local board from the participating
school corporations and schools;
(11) accept and use donations, gifts, or bequests for the
purposes of this chapter; and".
Page 11, line 30, delete "(11)" and insert "(12)".
Page 12, delete lines 18 through 23, begin a new line block indented
and insert:
"(1) shall exercise the full powers and duties provided under
the pilot program plan created under section 8(a) of this
chapter; and
(2) shall make recommendations regarding property tax levies
approved by the governing bodies of the applicable
participating school corporations.".
Page 13, line 23, delete "plan" and insert "report".
(Reference is to ESB 373 as printed April 9, 2025.)
BEHNING
_____
HOUSE MOTION
Mr. Speaker: I move that Engrossed Senate Bill 373 be amended to
read as follows:
Page 8, line 17, delete "plan" and insert "report".
Page 13, line 23, delete "plan" and insert "report".
Page 15, delete lines 26 through 36, begin a new line block indented
and insert:
"(2) Any provision under the following:
(A) IC 20-28-4.
(B) IC 20-28-11.5.
ES 373—LS 7358/DI 143 47
(C) IC 20-29.
(D) IC 20-30-2-2.
(E) IC 20-30-4.".
(Reference is to ESB 373 as printed April 9, 2025.)
BEHNING
_____
HOUSE MOTION
Mr. Speaker: I move that Engrossed Senate Bill 373 be amended to
read as follows:
Page 15, between lines 36 and 37, begin a new line block indented
and insert:
"(3) Subject to subsection (b), any provisions under the
statewide assessment program under IC 20-32-5.1.
(b) A statewide assessment program test requirement may not
be suspended under subsection (a)(3) unless the department has
received a waiver from the assessment requirements of the federal
Every Student Succeeds Act (ESSA) (20 U.S.C. 6311) and approval
for one (1) or more alternate assessments for school corporations
and charter schools participating in the pilot program.".
Page 15, line 37, delete "(b)" and insert "(c)".
(Reference is to ESB 373 as printed April 9, 2025.)
BEHNING
ES 373—LS 7358/DI 143