LEGISLATIVE BULLETIN 09-6

2009 General Assembly Legislative Bulletin Special Session Summary June 30, 2009 LEGISLATIVE BULLETIN 09-6** Prepared July 13, 2009 The ISBA Legislative Bulletin contains the state budget bill with education-related concepts as enacted by the 2009 Indiana General Assembly on June 30, 2009. The Bulletin is compiled and authored by the Associations’ staff. It is intended as an informational publication for use by ISBA, IAPSS and IASBO members. Because of the volume of Legislative Bulletin 09-6 Special Session Summary, a table of contents with related bill concepts (as applicable) and page location is provided. ** This Bulletin is published for informational purposes and is not intended as a substitute for the official Acts, which may be viewed at http://www.in.gov/apps/lsa/specialsession/billwatch/billinfo . . . . . . . . . . Denotes omission of statute language. Legislative Bulletin 09-6 Special Session Summary Page 2 TABLE OF CONTENTS P.L. 182 – 2009 HEA 1001 SS Title/Concepts Page State Budget ............................................................................................................................. 4 Synopsis ................................................................................................................................... 4 Education Appropriations ...................................................................................................... 12 School and library internet connection .......................................................................... 12 Indiana safe schools ....................................................................................................... 12 Elementary and secondary education............................................................................. 13 IEERB ............................................................................................................................ 22 Revenue Forecast Trigger ...................................................................................................... 22 ARRA Language .................................................................................................................... 22 Covington Loan from Rainy Day Fund ................................................................................. 23 Department of Child Services Ombudsman .......................................................................... 24 Political Subdivision Bonding Repayment ............................................................................ 28 State Employees Health Insurance Plan ................................................................................ 29 Annual Adjustment Factors on Real Property ....................................................................... 32 Budget Advertisement before September 10 ......................................................................... 33 Budget Adoption by November 1 .......................................................................................... 34 Fiscal Year Budgeting Delayed June 30, 2011 ...................................................................... 36 DLGF Change Political Subdivision Budget ......................................................................... 37 Elimination of School Property Tax Control Board .............................................................. 38 Controlled Project – County Voter Registration Office Action on Petition .......................... 38 Construction Referendum Controlled Project Question ........................................................ 39 Special Election Dates for Construction Referendums .......................................................... 40 Withdrawing a Controlled Project from the Ballot ................................................................ 41 Construction Referendum Information on the DLGF Web site............................................. 41 Public Official Advocating for a Controlled Project – No Public Monies ............................ 42 Legislative Bulletin 09-6 Special Session Summary Page 3 Student Using the Student Newspaper or Broadcast to Speak about a Controlled Project Ballot ............................................................................................... 43 Distribution of 2008 Taxed Received in 2009 ....................................................................... 44 Eliminates Pre-school Special Education Fund ..................................................................... 45 DOE – Student Test Number Information ............................................................................. 45 David C. Ford Educational Technology Fund ....................................................................... 46 Circuit Breaker Replacement Grants ..................................................................................... 47 Prairie Township Consolidation ............................................................................................ 48 Facilities Incentive Grants Program....................................................................................... 48 Virtual Charter Schools.......................................................................................................... 49 State Employee Health Plan Participation ............................................................................. 49 Bus Drivers Requirements from Special Purpose Bus Requirements ................................... 53 Reduction in Staff Date Changes ........................................................................................... 54 Employee Evaluation Using Test Results .............................................................................. 55 School Distribution Formula.................................................................................................. 55 CPF Use for Utilities and Property Insurance........................................................................ 66 South Bend School Corporation – Tax Collection and Hearing ............................................ 66 Charter Schools No Payments for Principal and Interest/Common School Fund ................. 67 School Scholarship Program .................................................................................................. 67 Gaming Dollars for School Construction .............................................................................. 72 Special Education Pre-school Fund Balance to General Fund .............................................. 72 DOE and Department of Revenue Develop Rules for Tax Scholarship Credit ..................... 73 Budget Agency Review of State Health Insurance Plan for Schools .................................... 73 Brown County No Payments on Principal and Interest on Rainy Day Fund Loans .............. 74 School Fund Formula Study .................................................................................................. 74 Revises Employee Evaluation Language (Section 320) ........................................................ 75 Revises State Health Insurance Plan Language (Section 67) ............................................... 75 Legislative Bulletin 09-6 Special Session Summary Page 4 P.L. 182-2009 HEA 1001 SS State Budget DIGEST OF HB1001 (Updated June 30, 2009 5:09 pm - DI 73) Budget bill. Makes appropriations for the operation of state government and the delivery of Medicaid and other services. Authorizes capital projects. Specifies that the budget agency shall calculate whether tax collections for the state fiscal year ending June 30, 2010, exceed the May 27, 2009, adjusted state revenue forecast for that state fiscal year. Provides that if actual receipts for the state fiscal year ending June 30, 2010, exceed the adjusted state revenue forecast, 50% of the excess revenue is appropriated to the department of education (DOE) to be used as a special one time tuition support distribution to increase the foundation amount for each school corporation eligible for a tuition support distribution. Specifies a school funding formula. Provides that the governor shall cause reversions of $25,000,000 to be made from state general fund appropriations to non-public safety agencies and programs each year of the biennium. Adds requirements concerning money available under ARRA for: (1) Title I grants; and (2) special education funding. Specifies the maximum term for certain bonds and loans. Authorizes a local unit issuing debt to provide for a repayment schedule that will result in the same or a lower amount of interest being paid on obligations that would be issued using nearly equal payment amounts. Establishes the office of department of child services ombudsman within the department of administration. Prohibits the Indiana horse racing commission and the Indiana gaming commission from: (1) imposing, charging, or collecting by rule a fee that is not authorized by statute on any party to a proposed transfer of an ownership interest in a license; or (2) making the approval of a proposed transfer of an ownership interest in a license contingent upon the payment of any amount that is not authorized by statute. Provides that Vincennes University is not required to make employer contributions to the Indiana state teachers' retirement fund (TRF) for the employment during the period July 1, 2001, through June 30, 2009, of Vincennes University's employees who are members of the pre-1996 plan. Provides for a phase-in beginning July 1, 2009, of employer contributions to be made to TRF for those employees. Allows the Marion County health and hospital corporation to place on the ballot in November 2009 a local public question regarding a project to be financed by the issuance of bonds or the entering into of a lease. Establishes the green industries fund to provide grants and loans to Indiana manufacturers. Reallocates the cigarette tax revenue that is used to offset the employer health plan tax credit to the state general fund and a new state retiree health benefit trust fund. Extends expiration date of certain enterprise zones. Delays the beginning of the general reassessment until 2010. Eliminates the requirement that a property tax exemption application be filed every two years for certain property. Provides that a change in ownership of tangible property that continues to be used for an exempt purpose does not terminate an exemption. For the mortgage deduction and the standard deduction, requires the application to be completed and dated in the calendar year for which the person wishes to obtain the deduction, but allows filing on or before January 5 of the next year. Provides that if a notice of review of a property tax assessment is filed for an assessment that increased by more than 5% over the preceding assessment, the assessor has the burden of proving that the assessment is correct. Makes changes to the law governing referenda on bonds and leases for controlled projects. Changes deadlines for review of budgets, levies, and tax rates. Exempts Legislative Bulletin 09-6 Special Session Summary Page 5 public utility and governmental easement documents from the property sales disclosure filing requirement. Provides that certain properties are considered homesteads even though they are not owned by the individuals residing on them or by certain trusts. Requires county auditors to reinstate any standard deductions terminated because of the ownership of the properties upon receiving proof of the property's eligibility for the deduction and that the individual residing on the property is not claiming any additional standard deductions. Provides that levy limits do not apply to a civil taxing unit in the first year in which the civil taxing unit becomes a participating unit in a fire protection territory, but requires such a civil taxing unit to submit its proposed budget, levy, and tax rate for the fire protection territory to the department of local government finance (DLGF) for approval. Specifies that participating units in a fire protection territory may agree to change the provider unit of the territory. Eliminates the local government tax control board and the school property tax control board. Removes the expiration date for the county boards of tax adjustment. Allows the DLGF to specify trending values for an area if the county assessor is more than six months late in providing assessed values to the county auditor. Establishes procedures for determining the amount of a levy for a community mental health center or a community mental retardation and other developmental disabilities center that is exempt from levy limitations. Allows the assessment training and administration fund to be used for data base management expenses. Changes the tax increment replacement amount for a tax increment financing (TIF) district in Marion County so that the personal property increment may be used regarding obligations issued before May 8, 1989. Provides that the levy limits do not apply to assessments or taxes for tax increment replacement. Specifies when a mobile or manufactured home may be treated as inventory, and permits the waiver of property taxes on an abandoned mobile or manufactured home. Provides that a public utility company's tangible personal property that is locally assessed as fixed property is instead assessed as distributable property. Allows a taxing unit that experiences a property tax shortfall with respect to taxes payable in 2009 or 2010 resulting from the bankruptcy of a motor vehicle transmission manufacturer to obtain a loan from the rainy day fund. Provides for a loan from the rainy day fund to the city of LaPorte and to a county in which voting equipment has been damaged or destroyed in a natural disaster. Makes changes to bring Indiana in conformance with the Streamlined Sales and Use Tax Agreement as amended through September 5, 2008. Updates the definition of "gross retail income" to coincide with the definition of "sales price". Provides relief for retail merchants if there is a change in the sales and use tax rate. Makes permanent the sourcing rule for floral deliveries providing that a sale is sourced in some cases to the location of the florist where the order originated. Provides that the sale of Internet access service or certain ancillary telecommunication services are sourced to the customer's place of primary use. Updates references to the Internal Revenue Code and requires certain adjustments for the purposes of calculating adjusted gross income. Provides that a taxpayer is entitled to a state tax credit for a contribution to a scholarship granting organization. Provides that the contribution must be used by the scholarship granting organization in a scholarship program to provide scholarships to eligible students. Limits the total amount of tax credits that may be awarded to $2,500,000 in any state fiscal year. Extends the Hoosier business investment tax credit through 2013. For purposes of the tax credit for contributions to the college choice 529 education savings plan: (1) defines "contribution" to exclude rollovers from other 529 savings plans; and (2) excludes value added to the account through earnings of bonus points. Allows county option income tax revenue to be used to pay certain redevelopment bonds. Requires new retail Legislative Bulletin 09-6 Special Session Summary Page 6 merchants to file returns and remit sales tax electronically. Requires refiners, terminal operators, and qualified distributors to remit prepaid sales taxes through the department's online tax filing system. Allows the department of state revenue (DOR), subject to office of management and budget approval, to make a new prepayment rate determination if the price of gasoline has changed by at least 25% since the most recent determination. Uses 80% instead of 90% of the estimated tax liability in making the determination. Provides that an individual may claim a deduction for state income tax purposes for property taxes that: (1) were imposed on the individual's principal place of residence for the March 1, 2007, assessment date or the January 15, 2008, assessment date; (2) are due after December 31, 2008; and (3) are paid in 2009 on or before the due date for the property taxes. Requires all new withholding tax registrants to file returns and remit the withholding taxes electronically through the DOR's online tax filing program. Includes vehicles that operate on biodiesel or ultra low sulfur diesel fuel for purposes of the Hoosier alternative fuel vehicle manufacturer income tax credit. Specifies that for research expense incurred after December 31, 2009, a taxpayer may choose to have the amount of the research expense tax credit determined under the existing calculation or under an alternative calculation providing the amount of the credit is equal to 10% of the part of the taxpayer's Indiana qualified research expense for the year that exceeds 50% of the taxpayer's average Indiana qualified research expense for the preceding three years. Provides that after December 31, 2010, the DOR in cooperation with the DLGF and the budget agency shall provide data annually that: (1) identifies the total number of individual taxpayers that live within a particular municipality; (2) identifies the income of those taxpayers; and (3) includes certain other information. Adds a definition of "pass through entity" to the income tax statutes. Provides that income from a pass through entity shall be characterized in a manner consistent with the income's characterization for federal income tax purposes and attributed to Indiana as if the person, corporation, or pass through entity that received the income had directly engaged in the income producing activity. Requires certain large tax refunds to be applied against future tax liability. Provides that the maximum amount of the state tax credit for media production expenditures for all taxpayers in a state fiscal year is $2,500,000 (rather than $5,000,000). Repeals the sales tax exemption for property acquired for direct use in a qualified media production. Allows the DOR to require a person who is paying outstanding sales tax or withholding tax liability using periodic payments to make the periodic payment by electronic funds transfer through an automatic withdrawal from a financial institution. Amends the county adjusted gross income tax, county option income tax, and county economic development income tax statutes to provide that the budget agency (rather than the DOR) certifies the revenue distribution to counties. Makes changes concerning commercial motor vehicle excise tax distributions. Adds the utility receipts tax to the taxes for which a six year, rather than a three year, limit on assessment applies if gross receipts are understated by at least 25%. Makes various changes in tax procedure and administration, including changes concerning provisional property tax bills, appeals of assessments of certain industrial facilities, the levy appeal for assessed value growth, school assessment ratio studies, sales tax on gasoline, the sales tax exemption for leased aircraft, electronic filing; tax withholding, inheritance tax liens and interest accrual, notice of revoked retail merchant certificates, motor fuel tax procedures, and DOR refunds. Makes various changes in tax law, including sales tax exemptions for certain equipment involved in providing video services or monitoring blood glucose, an income tax deduction for solar powered roof fans, income taxation of certain foreign real estate investment Legislative Bulletin 09-6 Special Session Summary Page 7 trusts, the coal gasification technology investment tax credit, gasoline tax relief for certain diverted shipments, certain off-road vehicles under the motor carrier fuel tax statute, and road tractors under the commercial vehicle excise tax. Provides that the state treasurer shall invest in obligations of the Marion county capital improvement board (CIB) if certain conditions are met. Provides that the investment may not exceed $9 million per year for 2009 through 2011. Provides terms for the CIB obligations issued to the state treasurer. Permits the Marion County city-county council to increase, before September 1, 2009, the innkeeper's tax by not more than 1% (9% to 10%). Permits during January through March 2013 the supplemental auto rental excise tax to be increased by not more than 2% (4% to 6%) and the admissions tax to be increased by not more than 4% (6% to 10%). Deposits the revenue from the county tax increases in a new sports and convention facilities operating fund for the CIB. Restricts the use of the new operating fund to paying usual and customary operating expenses with respect to capital improvements owned, leased, or operated by the CIB. Allows for an addition to the Marion County professional sports development area to include the hotels in an area bounded by Washington, Illinois, and Maryland streets. Provides for state sales taxes and state and local income taxes from the additional area to be captured for the CIB up to $8,000,000 per year. Allows the captured taxes to be deposited in the new sports and convention facilities operating fund for the CIB if: (1) the budget director determines that the innkeepers' tax is imposed at the maximum rate and in effect on January 1 of a year (September 1 for 2009); or (2) the citycounty council raises at least $4 million from the innkeeper's tax and the capital improvement board issues obligations to the state treasurer. Reduces the number of appointments to the CIB by the county commissioners from two members to one members. Provides that one member shall be appointed to the CIB jointly by majority vote of a body consisting of one member of the board of county commissioners of each county (other than Marion County) in which a stadium and convention building food and beverage tax is in effect. Provides that the terms of the members of the CIB expire January 15, 2010, and new members must be appointed to serve terms beginning January 15, 2010. Requires the CIB to submit its operating and capital budget for review, approval, or rejection to the city-county council. Requires the CIB to present a long range financial plan to the city-county council before January 1, 2010. Requires the state board of accounts (SBOA) to do a financial and compliance audit annually of the CIB. Requires the CIB to submit the SBOA reports to the city-county council. Requires the city-county council to review the SBOA reports at a public hearing. Requires the city-county council to approve the issuance of revenue and general obligation bonds by the CIB. Removes the Marion County board of commissioners from the review and approval of general obligation bonds and adds a requirement for the mayor's approval. Makes corresponding changes. Authorizes an admissions tax for paid admissions to certain sports and recreational complexes. Provides that the admissions tax rate is 5% of the price of admission. Exempts certain events. Specifies the uses of the tax revenue. Establishes the Ohio River bridges project commission. Allows money in a major bridge fund in Allen County to be used for construction and maintenance for other bridges. Requires that a part of State Road 331 be operated as a limited access facility. Authorizes the Earlham College Trust personalized license plate. Provides for a referendum in November 2009 in Lake, Porter, LaPorte, and St. Joseph counties for the creation of a regional transportation district in northern Indiana ("district"). Provides that the district is created January 1, 2010, if the voters in at least two of the counties vote in favor of the creation of the district. Specifies that the district consists of all the incorporated and unincorporated territory in Legislative Bulletin 09-6 Special Session Summary Page 8 those counties where the majority of those voting on the public question vote in favor of creating the district. Provides for a regional funding, service area, and coordination board, a regional transportation district advisory board, a commuter rail service board (which is the northern Indiana commuter rail service board (NICTD)), a rail service advisory board, a bus service board, and a bus service advisory board. Creates a rail and bus service division for the district. Provides that the bus service division serves Lake County and Porter County (if the county is a member county). If the district is established, transfers authority to fund and operate a bus system from Lake County and Porter County or municipalities within Lake County or Porter County (if the county is a member county) to the bus service division, and terminates the existing transportation authorities and corporations in Lake and Porter counties. Authorizes the bus service division to impose a property tax, including a property tax pledged before January 1, 2010, to pay for bonds, loans, other obligations, or lease rentals related to a public transportation system in Lake County or Porter County (if the county is a member county). Provides that the property tax may be imposed only in the area in which the property tax could have been imposed for property taxes first due and payable in 2010. Permits the district board to impose a regional public transportation improvement tax on the income of individuals residing in a member county. Provides that the maximum improvement tax rate in any member county is 0.25%. Requires the improvement tax rate for capital in each member county to be based on the capital improvement needs of each member county as determined by the district board. Requires the improvement tax rate for operating in each member county to be based on the number of passengers and passenger miles. Permits each division board to contract with the Indiana finance authority for issuing debt. Provides that the Anderson airport area may be designated an airport development zone by the Anderson airport board. Authorizes the board of an airport authority established by the city of Gary to enter into a lease, management agreement, or other contract with a person to use, plan, design, acquire, construct, reconstruct, improve, extend, expand, lease, operate, repair, manage, maintain, or finance all or part of the airport and related facilities for a period not to exceed 99 years. Provides that an airport authority may enter into a lease, management agreement, or other contract concerning all or part of an airport without complying with the statute concerning BOT agreements and operating agreements. Provides that if the Gary airport authority enters into a lease, management agreement, or other contract concerning all or substantially all of its airport, the authority shall make distributions from payments received under the lease, management agreement, or other contract in installments and on dates determined by the Gary city council. Provides that the distributions are to be deposited in the Gary general fund. Requires the development board of the northwest Indiana regional development authority to separately account for money received or designated for construction, reconstruction, renovation, purchase, lease, acquisition, and equipping in a lease account separate from its general account. Provides that a member of the NICTD board of trustees appointed or reappointed after December 31, 2009, by the county commissioners of a county must be a resident of the county that the member represents and a member of the board of county commissioners of the county that the member represents. Provides that for appointments or reappointments to the NICTD board of trustees after December 31, 2009, the member representing the rest of the state, the passenger member, and the employee member are all nonvoting members. Provides that if Porter County ceases to be a member of the northwest Indiana regional development authority (RDA), the fiscal bodies of two or more municipalities located in Porter County may adopt ordinances to become members Legislative Bulletin 09-6 Special Session Summary Page 9 of the RDA. Provides that if two or more municipalities in Porter County become members of the RDA, the $3,500,000 annual transfers of county economic development income tax revenue to the RDA continue. Provides that the total gross weight with load of a vehicle or combination of vehicles transporting an ocean going container may not exceed 95,000 pounds. (The current weight limit may not exceed 90,000 pounds.) Provides that: (1) an ordinance adopted by a city or a town concerning the use of golf carts on a highway under the jurisdiction of the city or the town may not conflict with a driver's licensing requirement of another provision of the Indiana Code; and (2) that certain equipment, titling, and registration requirements do not apply when a golf cart is operated under the authority of an ordinance. Allows the Indiana department of transportation to enter into leases of highway rights-of-way and other state agencies to enter into leases on state property, for which responsibility is assigned to the lessee for the growth, maintenance, and harvesting of grasses or other plants that are suitable for processing into fuels or other energy products. Extends the expiration date of the office of the secretary of family and social services (FSSA), the office of Medicaid policy and planning, the statutes concerning directors of divisions within FSSA, and certain advisory committees under the FSSA statutes. Makes changes to the special employment and training services fund. Provides that the governor may direct the Indiana board of pharmacy to develop a prescription drug program that includes a standard format for an official tamper resistant prescription drug form for prescriptions. Provides that certain parental reimbursement obligations shall be paid directly to the department of child services (DCS) and not to the local court clerk so long as the child in need of services case, juvenile delinquency case, or status offense case is open. Specifies certain requirements for DCS contracts regarding collection of parental reimbursement amounts. Provides that the DCS is not responsible for costs of child services for children placed out of state unless the director recommends or approves the placement. Changes the membership of the statewide independent living council. Removes provisions limiting the health facilities subject to the quality assessment fee based on the health facility's Medicaid utilization rate and annual Medicaid revenue. Eliminates the exemption from the quality assessment fee for health facilities that receive only Medicare revenues. Provides an exemption for hospital based health facilities. Eliminates the role of the DOR in collecting quality assessment fees. Specifies the percentage distribution of money collected from the quality assessment depending on whether the state is receiving an adjusted federal medical assistance percentage under ARRA. Extends the health facility quality assessment fee until August 1, 2011. Delays the implementation of fiscal year budgeting for school corporations. Repeals a provision requiring the calculation of a state average assessment ratio. Provides that a school corporation is to receive its proportionate share of any delinquent property taxes paid that are attributable to a year in which the school corporation did not receive 100% of its general fund distribution because of unpaid taxes. Provides that the state personnel department shall allow a school corporation to elect to provide coverage of health care services for active and retired employees of the school corporation under a state employee health plan. Provides that if a school corporation elects to cover employees under a state employee health plan, all employees covered under a prior policy must be covered under the state employee health plan. Provides that a charter school or conversion charter school that has received an advance for operational costs from the common school fund does not have to make principal or interest payments during the state fiscal years beginning July 1, 2009, and July 1, 2010. Provides that Senator David C. Ford educational technology fund may be used for a school technology program Legislative Bulletin 09-6 Special Session Summary Page 10 developed by the department of education (DOE). Provides that a charter school may receive technology funds. Makes changes to the driver qualifications for a special purpose bus. Amends the circuit breaker levy replacement grant for school corporations. Permits the DOE to provide for data retrieval of timely student test numbers beginning in 2010. Requires a school corporation to notify a teacher that the governing body will consider nonrenewal of the teacher's contract for the next school term before June 1 in an even-numbered year or the later of June 15 or the date a budget act is enacted by the general assembly in an odd-numbered year. Provides that a school corporation's expenditures from its capital projects fund for utility services or property or casualty insurance may not in 2010 and in 2011 exceed 3.5% of the school corporation's 2005 calendar year distribution. Requires Prairie Township School Corporation to reorganize by consolidating with an adjacent school corporation under the school consolidation provisions. Specifies that if federal rules, regulations, or directives require the use of collective program results of tests to evaluate educators in order to qualify for those federal funds, collective program results of tests used by any school corporation that would receive federal funds may be used as a factor, but not the sole factor, to evaluate educators. Provides that if collective testing results are used as a factor in evaluations by a school corporation, they must be applied to all educators in that school corporation. Requires the DOE to develop a charter school facilities incentive grants program before January 1, 2010, using priority criteria set forth in federal law. Provides that the DOE shall establish a pilot program to provide funding for a statewide total of up to 200 students who attend virtual charter schools in the school year ending in 2010 and 500 students who attend virtual charter schools in the school year ending in 2011. Specifies that the pilot program shall focus on children who have medical disabilities or circumstances that prevent them from attending school or for whom a virtual charter school is a better alternative than a traditional school. Provides that the funding amount is the virtual charter school's ADM multiplied by 80% of the statewide average basic tuition support. Requires the DOE to adopt rules to govern the operation of virtual charter schools. Provides that the Brown County School Corporation is not required to make principal or interest payments during the state fiscal years beginning July 1, 2009, and July 1, 2010, on any loan received by the school corporation from the state rainy day fund. Increases the maximum amount of bonds that may be outstanding for a state educational institution's qualified energy savings projects from $10,000,000 to $15,000,000 per campus and requires any savings by Purdue University and Indiana University in excess of debt payments to be used to fund basic research for the Indiana Innovation Alliance. Provides that the amount of bonds outstanding for Ivy Tech Community College at any time for qualified energy savings projects may not exceed $45,000,000. Provides that qualified energy savings project bonds are not eligible for fee replacement. Requires the department of workforce development to release certain data to the legislative services agency for the purpose of forecasting tax revenues. Restores language removed by HEA 1358-2009 concerning application of foreclosure proceeds to delinquent property taxes. Provides that the department of financial institutions may adopt emergency rules to provide for a system of licensing creditors and mortgage loan originators that meets the requirements of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008. Specifies that a reference to a federal law in the Uniform Consumer Credit Code is a reference to the law in effect December 31, 2008. Specifies that a reference to a federal law or federal regulation in Title 28 of the Indiana Code is a reference to the law or regulation in effect December 31, 2008. Regulates fees imposed by a local firefighting unit. Allows townships to Legislative Bulletin 09-6 Special Session Summary Page 11 provide fire protection or emergency services within a municipality that lies at least in part in the township and does not have a full-time, paid fire department without contracts if both legislative bodies approve. (Current law requires a municipality to lie entirely within the township to permit the arrangement.) Allows a political subdivision to borrow money from a financial institution for a public works project for ten (rather than six) years. Specifies certain additional powers for redevelopment commissions. Adds Wabash County to the counties that may annex noncontiguous property to be used as an industrial park. Authorizes a city or county in which a riverboat is docked or located or gambling games are located to enter into one or more agreements or leases with a school corporation or another public or private entity to provide for the construction or renovation of a school building that will be used by the school corporation. Allows the members of the board of directors of a redevelopment authority to be residents of or have their place of employment within the unit that created the redevelopment authority, under certain circumstances. Establishes requirements concerning the use of amounts in 1925, 1937, and 1953 public safety pension funds. Allows a public transportation corporation outside Marion County to provide service outside a municipality's corporate boundaries without charging rates that are sufficient to cover the expanded service. Repeals the requirement that the public transportation corporation hold a public hearing concerning proposed expanded service and the information related to the hearing. Repeals a provision specifying that a motor carrier authorized to perform transportation service described at such a hearing is eligible to provide the service if the motor carrier takes certain actions. Provides that if the courts begin collecting the automated record keeping fee on pre-trial diversions and prosecutor deferrals, all of the additional revenue goes to the homeowner protection unit account established within the state general fund. Allows local option income taxes for a levy freeze, public safety, or property tax relief to be adopted in 2009 at any time before November 1, 2009 (rather than before August 1, 2009). Legalizes the method used by the DLGF to reduce the 2009 maximum permissible ad valorem property tax levy of taxing units that paid benefits to members of the "old" police and firefighter pension funds. Extends the time in which certain nonprofit entities may file a property tax exemption application. Permits the balance of a county's family and children's fund or county's children's psychiatric residential treatment services fund to be transferred to the county rainy day fund. Provides, for counties with an April 1, 2009, aggregate balance of at least $10,000,000 in the county's family and children's fund and children's psychiatric residential treatment services fund (required to be transferred to the county levy excess fund under P.L.146-2008), that the county may transfer $1,000,000 from its levy excess fund to the county's rainy day fund and two-thirds of the balance to civil taxing units in the county for public safety. Provides for two semiannual installments of revenue replacing homestead credits granted to taxpayers in 2009 and 2010. Allows borrowing by a fire protection district that was initially established in 2006, has experienced significant revenue shortfalls due to cumulative mathematical errors in the calculation of its maximum permissible property tax levies in 2007 and 2008, and may experience a significant revenue shortfall in 2009 and 2010 requiring the district to seek funds in addition to the amounts certified for the district's current budget to provide fire protection to district residents. Establishes a credit for property taxes payable in 2010 for homesteads owned by residential trusts that did not receive the standard deduction for taxes payable in 2009. Provides that the amount of the credit is the remainder of the 2009 taxes paid minus the tax liability that would have applied if the trust had been eligible for the standard deduction. Provides a refund of gross income taxes erroneously paid for 2003 and Legislative Bulletin 09-6 Special Session Summary Page 12 2004 by a town if the town also paid the utilities receipts tax for the same year. Provides that a designating body may by resolution approve the expansion of a professional sports and convention development area after June 30, 2009, to include a hotel designated by the designating body, and increases the maximum amount that may be captured by an area in South Bend. Authorizes the general assembly to convene a technical session of the general assembly before October 1, 2009, to consider and act upon certain bills. Amends the provisions concerning railroad whistle posts. Requires the legislative council shall establish a two year study committee to study issues related to the school funding formula. Establishes the gaming study committee. Requires the commission on state tax and financing policy to study various topics. Requires DOR to conduct a feasibility study related to cigarette stamp design and use. Provides for a study committee to study the mission, organization, and management structure of the I-Light Fiber Optic Network and submit a report to the governor and the legislative council. Requires the commission for higher education with the assistance of SSACI to study the funding of college scholarship programs provided by SSACI and the state's public universities. Establishes the criminal code evaluation commission. Requires the budget agency to review the costs of providing employee health, vision, and dental insurance for state employees and employees of school corporations and public universities. Makes other changes concerning taxation and state and local finance. Education Appropriations SECTION 3. [EFFECTIVE JULY 1, 2009] For the conduct of state government, its offices, funds, boards, commissions, departments, societies, associations, services, agencies, and undertakings, and for other appropriations not otherwise provided by statute, the following sums in SECTIONS 3 through 10 are appropriated for the periods of time designated from the general fund of the state of Indiana or other specifically designated funds…………………. In this act, whenever there is no specific fund or account designated, the appropriation is from the general fund. SCHOOL AND LIBRARY INTERNET CONNECTION (IC 4-34-3-2) Build Indiana Fund (IC 4-30-17) Total Operating Expense 2,800,000 2,800,000 Of the foregoing appropriations, $1,800,000 each year shall be used for schools under IC 4-34-3-4, and $1,000,000 each year shall be used for libraries under IC 4-34-3-2. INDIANA SAFE SCHOOLS General Fund Total Operating Expense 1,247,756 1,247,756 Indiana Safe Schools Fund (IC 5-2-10.1-2) Total Operating Expense 764,397 764,397 Augmentation allowed from Indiana Safe Schools Fund. Legislative Bulletin 09-6 Special Session Summary Page 13 Of the above appropriations for the Indiana safe schools program, $1,262,153 is appropriated annually to provide grants to school corporations for school safe haven programs, emergency preparedness programs, and school safety programs, and $750,000 is appropriated annually for use in providing training to school safety specialists. B. ELEMENTARY AND SECONDARY EDUCATION FOR THE DEPARTMENT OF EDUCATION STATE BOARD OF EDUCATION Total Operating Expense 3,144,762 3,144,762 The foregoing appropriations for the Indiana state board of education are for the education roundtable established by IC 20-19-4; for the academic standards project to distribute copies of the academic standards and provide teachers with curriculum frameworks; for special evaluation and research projects including national and international assessments; and for state board and roundtable administrative expenses. SUPERINTENDENT'S OFFICE From the General Fund 8,495,125 8,495,125 From the Professional Standards Fund (IC 20-28-2-8) 395,000 395,000 Augmentation allowed from the Professional Standards Fund. The amounts specified from the General Fund and the Professional Standards Fund are for the following purposes: Personal Services 5,895,372 5,895,372 Other Operating Expense 2,994,753 2,994,753 PUBLIC TELEVISION DISTRIBUTION Total Operating Expense 3,220,000 3,220,000 These appropriations are for grants for public television. The Indiana Public Broadcasting Stations, Inc., shall submit a distribution plan for the eight Indiana public education television stations that shall be approved by the budget agency after review by the budget committee. Of the above appropriations, $368,000 each year shall be distributed equally among all of the public radio stations. SCHOOL IMPROVEMENT PROGRAMS ARRA State Fiscal Stabilization Fund (Section 14002(b)) Total Operating Expense 5,000,000 Legislative Bulletin 09-6 Special Session Summary Page 14 The foregoing appropriation shall be used for the Woodrow Wilson teaching fellowship program for new math and science teachers in underserved areas and to support start-up costs to establish New Tech high schools in Indiana. RILEY HOSPITAL Total Operating Expense 27,900 27,900 BEST BUDDIES Total Operating Expense 250,000 250,000 MOTORCYCLE OPERATOR SAFETY EDUCATION FUND Safety Education Fund (IC 20-30-13-11) Personal Services 154,388 154,388 Other Operating Expense 829,642 829,642 The foregoing appropriations for the motorcycle operator safety education fund are from the motorcycle operator safety education fund created by IC 20-30-13-11. SCHOOL TRAFFIC SAFETY Motor Vehicle Highway Account (IC 8-14-1) Personal Services 224,364 224,364 Other Operating Expense 28,119 28,119 Augmentation allowed. EDUCATION LICENSE PLATE FEES Education License Plate Fees Fund (IC 9-18-31) Total Operating Expense 141,200 141,200 ACCREDITATION SYSTEM Personal Services 566,462 566,462 Other Operating Expense 283,966 283,966 SPECIAL EDUCATION (S-5) Total Operating Expense 24,750,000 24,750,000 The foregoing appropriations for special education are made under IC 20-35-6-2. SPECIAL EDUCATION EXCISE Alcoholic Beverage Excise Tax Funds (IC 20-35-4-4) Personal Services 386,527 386,527 Augmentation allowed. CAREER AND TECHNICAL EDUCATION Personal Services 1,390,117 1,390,117 Other Operating Expense 36,828 36,828 ADVANCED PLACEMENT PROGRAM Other Operating Expense 953,284 953,284 The above appropriations for the Advanced Placement Program are to provide funding for students of accredited public and nonpublic schools. Legislative Bulletin 09-6 Special Session Summary Page 15 PSAT PROGRAM Other Operating Expense 717,449 717,449 The above appropriations for the PSAT program are to provide funding for students of accredited public and nonpublic schools. EDUCATION SERVICE CENTERS Total Operating Expense 2,100,000 1,000,000 No appropriation made for an education service center shall be distributed to the administering school corporation of the center unless each participating school corporation of the center contracts to pay to the center at least three dollars ($3) per student for fiscal year 2009-2010 based on the school corporation's ADM count as reported for school aid distribution in the fall of 2008 and at least three dollars ($3) per student for fiscal year 2010-2011, based on the school corporation's ADM count as reported for school aid distribution beginning in the fall of 2009. Before notification of education service centers of the formula and components of the formula for distributing funds for education service centers, review and approval of the formula and components must be made by the budget agency. TRANSFER TUITION (STATE EMPLOYEES' CHILDREN AND ELIGIBLE CHILDREN IN MENTAL HEALTH FACILITIES) Total Operating Expense 25,000 25,000 The foregoing appropriations for transfer tuition (state employees' children and eligible children in mental health facilities) are made under IC 20-26-11-8 and IC 20-26-11-10. TEACHERS' SOCIAL SECURITY AND RETIREMENT DISTRIBUTION Total Operating Expense 2,403,792 2,403,792 The foregoing appropriations shall be distributed by the department of education on a monthly basis and in approximately equal payments to special education cooperatives, area career and technical education schools, and other governmental entities that received state teachers' Social Security distributions for certified education personnel (excluding the certified education personnel funded through federal grants) during the fiscal year beginning July 1, 1992, and ending June 30, 1993, and for the units under the Indiana state teacher's retirement fund, the amount they received during the 2002-2003 state fiscal year for teachers' retirement. If the total amount to be distributed is greater than the total appropriation, the department of education shall reduce each entity's distribution proportionately. DISTRIBUTION FOR TUITION SUPPORT Total Operating Expense 6,420,765,650 6,558,700,000 Legislative Bulletin 09-6 Special Session Summary Page 16 After July 1, 2009, but before June 30, 2011, the state budget agency shall transfer six hundred ten million dollars ($610,000,000) from the state tuition reserve fund to the state general fund to support the foregoing appropriations. The $610,000,000 represents the monies under Section 14002(a) of ARRA used to restore state support and fund the CY 2009 tuition support distribution pursuant to the school funding formula contained in HEA 1001-2007. The foregoing appropriations for distribution for tuition support are to be distributed for tuition support, special education programs, career and technical education programs, honors grants, and the primetime program in accordance with a statute enacted for this purpose during the 2009 session of the general assembly. If the above appropriations for distribution for tuition support are more than are required under this SECTION, any excess shall revert to the general fund. The above appropriations for tuition support shall be made each calendar year under a schedule set by the budget agency and approved by the governor. However, the schedule shall provide for at least twelve (12) payments, that one (1) payment shall be made at least every forty (40) days, and the aggregate of the payments in each calendar year shall equal the amount required under the statute enacted for the purpose referred to above. DISTRIBUTION FOR SUMMER SCHOOL Other Operating Expense 18,360,000 18,360,000 It is the intent of the 2009 general assembly that the above appropriations for summer school shall be the total allowable state expenditure for such program. Therefore, if the expected disbursements are anticipated to exceed the total appropriation for that state fiscal year, then the department of education shall reduce the distributions proportionately. EARLY INTERVENTION PROGRAM AND READING DIAGNOSTIC ASSESSMENT Total Operating Expense 4,720,000 4,720,000 The above appropriation for the early intervention program may be used for grants to local school corporations for grant proposals for early intervention programs. The foregoing appropriations may be used by the department for the reading diagnostic assessment and subsequent remedial programs or activities. The reading diagnostic assessment program, as approved by the board, is to be made available on a voluntary basis to all Indiana public and nonpublic school first and second grade students upon the approval of the governing body of school corporations. The board shall determine how the funds will be distributed for the assessment and related remediation. Legislative Bulletin 09-6 Special Session Summary Page 17 The department or its representative shall provide progress reports on the assessment as requested by the board and the education roundtable. SCHOOL CIRCUIT BREAKER REPLACEMENT CREDITS Total Operating Expense 38,000,000 27,000,000 The above appropriations for school circuit breaker replacement credits replace the appropriations in HEA 1001-2008, SECTION 857. ADULT EDUCATION DISTRIBUTION Total Operating Expense 14,000,000 14,000,000 It is the intent of the 2009 general assembly that the above appropriations for adult education shall be the total allowable state expenditure for such program. Therefore, if the expected disbursements are anticipated to exceed the total appropriation for a state fiscal year, the department of education shall reduce the distributions proportionately. NATIONAL SCHOOL LUNCH PROGRAM Total Operating Expense 5,400,000 5,400,000 MARION COUNTY DESEGREGATION COURT ORDER Total Operating Expense 18,000,000 18,000,000 The foregoing appropriations for court ordered desegregation costs are made pursuant to order No. IP 68-C-225-S of the United States District Court for the Southern District of Indiana. If the sums herein appropriated are insufficient to enable the state to meet its obligations, then there are hereby appropriated from the state general fund such further sums as may be necessary for such purpose. TEXTBOOK REIMBURSEMENT Total Operating Expense 39,000,000 39,000,000 Before a school corporation or an accredited nonpublic school may receive a distribution under the textbook reimbursement program, the school corporation or accredited nonpublic school shall provide to the department the requirements established in IC 2033-5-2. The department shall provide to the family and social services administration (FSSA) all data required for FSSA to meet the data collection reporting requirement in 45 CFR 265. Family and social services administration, division of family resources, shall apply all qualifying expenditures for the textbook reimbursement program toward Indiana's maintenance of effort under the federal Temporary Assistance to Needy Families (TANF) program (45 CFR 260 et seq.). The foregoing appropriations for textbook reimbursement include the appropriation of the common school fund interest balance. The remainder of the above appropriations are provided from the state general fund. Legislative Bulletin 09-6 Special Session Summary Page 18 FULL-DAY KINDERGARTEN Total Operating Expense 58,500,000 58,500,000 The above appropriations for full day kindergarten are available to school corporations and charter schools that apply to the department of education for funding of full day kindergarten. The amount available to a school corporation or charter school equals the amount appropriated divided by the total full day kindergarten enrollment of all participating school corporations and charter schools (as defined in IC 20-43-1-11) for the current year, and then multiplied by the school corporation's or charter school's full day kindergarten enrollment (as defined in IC 20-43-1-11) for the current year. However, a school corporation or charter school may not receive more than $2,500 dollars per student for full day kindergarten. A school corporation or charter school that is awarded a grant must provide to the department of education a financial report stating how the funds were spent. Any unspent funds at the end of the biennium must be returned to the state by the school corporation or charter school. To provide full day kindergarten programs, a school corporation or charter school that determines there is inadequate space to offer a program in the school corporation's or charter school's existing facilities may offer the program in any suitable space located within the geographic boundaries of the school corporation or, in the case of a charter school, a location that is in the general vicinity of the charter school's existing facilities. A full day kindergarten program offered by a school corporation or charter school must meet the academic standards and other requirements of IC 20. A school corporation or charter school that receives a grant must meet the academic standards and other requirements of IC 20. In awarding grants from the above appropriations, the department of education may not refuse to make a grant to a school corporation or reduce the award that would otherwise be made to the school corporation because the school corporation used federal grants or loans, including Title I grants, to fund part or all of the school corporation's full day kindergarten program in a school year before the school year in which the grant will be given or because the school corporation intends to use federal grants or loans, including Title I grants, to fund part of the school corporation's full day kindergarten program in a school year in which the grant will be given. The state board and department shall provide support to school corporations and charter schools in the development and implementation of child centered and learning focused programs using the following methods: (1) Targeting professional development funds to provide teachers in kindergarten through grade 3 education in: (A) scientifically proven methods of teaching reading; (B) the use of data to guide instruction; and (C) the use of age appropriate literacy and mathematics assessments. Legislative Bulletin 09-6 Special Session Summary Page 19 (2) Making uniform, predictively valid, observational assessments that: (A) provide frequent information concerning the student's progress to the student's teacher; and (B) measure the student's progress in literacy; available to teachers in kindergarten through grade 3. Teachers shall monitor students participating in a program, and the school corporation or charter school shall report the results of the assessments to the parents of a child completing an assessment and to the department. (3) Undertaking a longitudinal study of students in programs in Indiana to determine the achievement levels of the students in kindergarten and later grades. The school corporation or charter school may use any funds otherwise allowable under state and federal law, including the school corporation's general fund, any funds available to the charter school, or voluntary parent fees, to provide full day kindergarten programs. TESTING AND REMEDIATION Total Operating Expense 39,000,000 39,000,000 Prior to notification of local school corporations of the formula and components of the formula for distributing funds for remediation, review and approval of the formula and components shall be made by the budget agency. The above appropriation for testing and remediation shall be used by school corporations to provide remediation programs for students who attend public and nonpublic schools. For purposes of tuition support, these students are not to be counted in the average daily membership. Of the above appropriation for testing and remediation, $500,000 each year shall be used for ACT/SAT test preparation. GRADUATION EXAM REMEDIATION Other Operating Expense 4,958,910 4,958,910 Prior to notification of local school corporations of the formula and components of the formula for distributing funds for graduation exam remediation, review and approval of the formula and components shall be made by the budget agency. SPECIAL EDUCATION PRESCHOOL Total Operating Expense 19,200,000 0 The above appropriations shall be distributed to guarantee a minimum of $2,750 per child enrolled in special education preschool programs. It is the intent of the 2009 general assembly that the above appropriations for special education preschool shall be the total allowable expenditure for such program. Therefore, if the expected disbursements are anticipated to exceed the total appropriation for that state fiscal year, then the department of education shall reduce the distributions proportionately. Legislative Bulletin 09-6 Special Session Summary Page 20 NON-ENGLISH SPEAKING PROGRAM Other Operating Expense 6,965,055 6,965,055 The above appropriations for the Non-English Speaking Program are for pupils who have a primary language other than English and limited English proficiency, as determined by using a standard proficiency examination that has been approved by the department of education. The grant amount is two hundred dollars ($200) per pupil. It is the intent of the 2009 general assembly that the above appropriations for the Non-English Speaking Program shall be the total allowable state expenditure for the program. If the expected distributions are anticipated to exceed the total appropriations for the state fiscal year, the department of education shall reduce each school corporation's distribution proportionately. GIFTED AND TALENTED EDUCATION PROGRAM Personal Services 148,024 148,024 Other Operating Expense 12,788,157 12,788,157 DISTRIBUTION FOR ADULT VOCATIONAL EDUCATION Total Operating Expense 250,000 250,000 The distribution for adult career and technical education programs shall be made in accordance with the state plan for vocational education. PRIMETIME Personal Services 202,136 202,136 Other Operating Expense 32,053 32,053 DRUG FREE SCHOOLS Personal Services 46,203 46,203 Other Operating Expense 20,451 20,451 PROFESSIONAL DEVELOPMENT DISTRIBUTION Other Operating Expense 5,500,000 5,500,000 The foregoing appropriation for professional development distribution includes schools defined under IC 20-31-2-8. ALTERNATIVE EDUCATION Total Operating Expense 6,580,319 6,580,319 The above appropriation includes funding to provide $5,000 for each child attending a charter school operated by an accredited hospital specializing in the treatment of alcohol or drug abuse. This funding is in addition to tuition support for the charter school. Legislative Bulletin 09-6 Special Session Summary Page 21 The foregoing appropriation for alternative education may be used for dropout prevention defined under IC 20-20-37. SENATOR DAVID C. FORD EDUCATIONAL TECHNOLOGY PROGRAM (IC 20-20-13) Build Indiana Fund (IC 4-30-17) Total Operating Expense 3,809,965 3,809,965 Of the above appropriations for the Senator David C. Ford Educational Technology Program, $825,000 shall be allocated each year to the buddy system. The department shall use the remaining funds to make grants to school corporations to promote student learning through the use of technology. Notwithstanding distribution guidelines in IC 20-20-13, the department shall develop guidelines for distribution of the grants. Up to $200,000 may be used each year to support the operation of the office of the special assistant to the superintendent of public instruction for technology. PROFESSIONAL STANDARDS DIVISION From the General Fund 2,882,513 2,882,513 From the Professional Standards Fund (IC 20-28-2-8) 1,000,000 1,000,000 Augmentation allowed. The amounts specified from the General Fund and the Professional Standards Fund are for the following purposes: Personal Services 2,243,571 2,243,571 Other Operating Expense 1,638,942 1,638,942 The above appropriations for the Professional Standards Division do not include funds to pay stipends for mentor teachers. FOR THE INDIANA STATE TEACHERS' RETIREMENT FUND POSTRETIREMENT PENSION INCREASES Other Operating Expense 58,190,084 60,517,687 The appropriations for postretirement pension increases are made for those benefits and adjustments provided in IC 5-10.4 and IC 5-10.2-5. TEACHERS' RETIREMENT FUND DISTRIBUTION Other Operating Expense 618,616,164 643,780,810 Augmentation allowed. If the amount actually required under the pre-1996 account of the teachers' retirement Legislative Bulletin 09-6 Special Session Summary Page 22 fund for actual benefits for the Post Retirement Pension Increases that are funded on a "pay as you go" basis plus the base benefits under the pre-1996 account of the teachers' retirement fund is: (1) greater than the above appropriations for a year, after notice to the governor and the budget agency of the deficiency, the above appropriation for the year shall be augmented from the general fund. Any augmentation shall be included in the required pension stabilization calculation under IC 5-10.4; or (2) less than the above appropriations for a year, the excess shall be retained in the general fund. The portion of the benefit funded by the annuity account and the actuarially funded Post Retirement Pension Increases shall not be part of this calculation. EDUCATION EMPLOYMENT RELATIONS BOARD Personal Services 587,688 587,688 Other Operating Expense 52,720 52,720 xxxxxxxxxxxxxxxx Revenue Forecast Trigger SECTION 38. [EFFECTIVE JULY 1, 2009] (a) On or before July 15, 2010, the budget agency shall calculate whether receipts from actual tax collections for the state fiscal year ending June 30, 2010, exceed the May 27, 2009, adjusted state revenue forecast for that state fiscal year. If actual receipts for the state fiscal year ending June 30, 2010, exceed the May 27, 2009, adjusted state revenue forecast for that state fiscal year, fifty percent (50%) of the excess revenue is appropriated to the department of education to be used as a special one (1) time tuition support distribution. Any funds distributed under this SECTION shall be used to increase the foundation amount for each school corporation eligible for a tuition support distribution. The budget agency and the department of education may exceed the calendar year tuition support maximum distribution contained in IC 20-43-2-2 as necessary to implement this SECTION. (b) This SECTION expires June 30, 2011. xxxxxxxxxxxxxxxx ARRA Language SECTION 47. [EFFECTIVE UPON PASSAGE] (a) As used in this SECTION, "ARRA" refers to the federal American Recovery and Reinvestment Act of 2009. (b) As used in this SECTION, "Title I" refers to Title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.). (c) With respect to ARRA funds that are specifically designated for subgrants to local education agencies based on Title I or incentive grants, the following apply: (1) The governor and the department of education may take any actions necessary to qualify the state for the ARRA funds related to Title I. If permitted by the ARRA, school corporations shall submit plans to the department of education for approval before Legislative Bulletin 09-6 Special Session Summary Page 23 spending the ARRA funds related to Title I. (2) To the extent it does not conflict with federal law or rules or guidelines that would make Indiana ineligible to receive ARRA funds related to Title I, the ARRA funds must be used to support Title I eligible students for the following: (A) Repair and rehabilitation of facilities. (B) Upgrading technology or equipment. (C) Training or professional development. (D) Summer school or other remediation programs and purposes for which the expenses are one (1) time in nature and do not increase the base operating expenses of schools to a level that would be difficult to maintain. (d) The department of education shall review the use of all Title I expenditures to ensure the proper use of Title I funds under federal laws and regulations. SECTION 48. [EFFECTIVE UPON PASSAGE] (a) As used in this SECTION, "ARRA" refers to the federal American Recovery and Reinvestment Act of 2009. (b) With respect to ARRA funds under Division A, Title VIII of the ARRA for special education, the following apply: (1) The governor and the department of education may take any actions necessary to qualify the state for the ARRA funds under Division A, Title VIII of the ARRA. If permitted by the ARRA, school corporations shall submit plans to the department of education for approval before spending the ARRA funds under Division A, Title VIII of the ARRA. (2) To the extent it does not conflict with federal law or rules or guidelines that would make Indiana ineligible to receive ARRA funds under Division A, Title VIII of the ARRA, the ARRA funds must be used to support special education students for the following: (A) Repair and rehabilitation of facilities. (B) Upgrading technology or equipment, including adaptive technology. (C) Training or professional development. (D) Programs and purposes for which the expenses are one (1) time in nature and do not increase the base operating expenses of school corporations to a level that would be difficult to maintain. (c) The department of education shall review the use of all special education to ensure the proper use of special education funds under federal laws and regulations. xxxxxxxxxxxxxxxx Covington Loan from Rainy Day Fund SECTION 53. IC 4-10-18-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) The state board of finance may lend money from the fund to entities listed in subsections (e) through (j) (k) for the purposes specified in those subsections…….. (k) A loan under this section may be made to Covington Community School Corporation to refund the amount due on a tax anticipation warrant loan. The amount of the loan may not exceed two million seven hundred thousand dollars ($2,700,000), to be paid back from any source of money that is legally available to the school corporation. Notwithstanding Legislative Bulletin 09-6 Special Session Summary Page 24 subsection (b), the school corporation must apply for the loan before June 30, 2010. Notwithstanding subsection (c), repayment of the loan shall be made in equal installments over five (5) years with the first installment due not more than six (6) months after the date loan proceeds are received by the school corporation. xxxxxxxxxxxxxxx Department of Child Services Ombudsman SECTION 55. IC 4-13-19 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Chapter 19. Department of Child Services Ombudsman Sec. 1. As used in this chapter, "child" means a person who: (1) is less than eighteen (18) years of age; (2) is at least eighteen (18) years of age at the time a complaint is made but was less than eighteen (18) years of age at the time of the alleged act or omission that is the subject of the complaint; or (3) is at least eighteen (18) years of age but has been under the continuing jurisdiction of a juvenile court based upon an informal adjustment, child in need of services action under IC 31-34, or termination of parental rights action under IC 31-35 since becoming eighteen (18) years of age. Sec. 2. As used in this chapter, "ombudsman" means: (1) the person appointed by the governor to serve as ombudsman; or (2) an employee or other individual approved by the office of the department of child services ombudsman to act in the capacity of ombudsman; to receive, investigate, and resolve complaints that allege the department of child services, by an action or omission, failed to protect the physical or mental health or safety of any child or failed to follow specific laws, rules, or written policies. Sec. 3. The office of department of child services ombudsman is established as a separate bureau within the department. The ombudsman appointed by the governor shall report directly to the commissioner. The ombudsman appointed by the governor must be an attorney licensed to practice law in Indiana or a social worker with at least a master's degree. The ombudsman appointed by the governor must have significant experience or education in child development and child advocacy, including at least two (2) years experience working with child abuse and neglect. Sec. 4. (a) The governor shall appoint the ombudsman. The ombudsman serves at the pleasure of the governor. An individual may not be appointed as ombudsman if the individual has been employed by the department of child services at any time during the preceding twelve (12) months. The governor shall appoint a successor ombudsman not later than thirty (30) days after a vacancy occurs in the position of the ombudsman. (b) The office of the department of child services ombudsman may employ technical experts and other employees to carry out the purposes of this chapter. However, the office of the department of child services ombudsman may not hire an individual to serve as an ombudsman if the individual has been employed by the department of child services during the preceding twelve (12) months. Legislative Bulletin 09-6 Special Session Summary Page 25 (c) The ombudsman and any other person employed or authorized by the ombudsman: (1) are subject to the same criminal history and background checks, to be performed by the department of child services, that are required for department of child services family case managers; and (2) are subject to the same disqualification for employment criteria as department of child services family case managers. Sec. 5. (a) The office of the department of child services ombudsman may receive, investigate, and attempt to resolve a complaint alleging that the department of child services, by an action or omission occurring on or after January 11, 2005, failed to protect the physical or mental health or safety of any child or failed to follow specific laws, rules, or written policies. (b) The office of the department of child services ombudsman may also do the following: (1) Take action, including the establishing of a program of public education, to secure and ensure the legal rights of children. (2) Periodically review relevant policies and procedures with a view toward the safety and welfare of children. (3) When appropriate, refer a person making a report of child abuse or neglect to the department of child services and, if appropriate, to an appropriate law enforcement agency. (4) Recommend changes in procedures for investigating reports of abuse and neglect and overseeing the welfare of children who are under the jurisdiction of a juvenile court. (5) Make the public aware of the services of the ombudsman, the purpose of the office, and information concerning contacting the office. (6) Examine policies and procedures and evaluate the effectiveness of the child protection system, specifically the respective roles of the department of child services, the court, the medical community, service providers, guardians ad litem, court appointed special advocates, and law enforcement agencies. (7) Review and make recommendations concerning investigative procedures and emergency responses contained in the report prepared under section 10 of this chapter. (c) Upon request of the office of the department of child services ombudsman, the local child protection team shall assist the office of the department of child services ombudsman by: (1) investigating and making recommendations on a matter; or (2) redacting or revising any report to be prepared for the complainant so that confidentiality laws are maintained. If a local child protection team was involved in an initial investigation, a different local child protection team may assist in the investigation under this subsection. (d) At the end of an investigation of a complaint, the office of the department of child services ombudsman shall provide an appropriate report as follows: (1) If the complainant is a parent, guardian, custodian, court appointed special advocate, guardian ad litem, or court, the ombudsman may provide the same report to the complainant and the department of child services. (2) If the complainant is not a person described in subdivision (1), the ombudsman shall provide a redacted version of its findings to the complainant stating in general terms that the actions of the department of child services were or were not appropriate. (e) The department of child services ombudsman shall provide a copy of the report and Legislative Bulletin 09-6 Special Session Summary Page 26 recommendations to the department of child services. The office of the department of child services ombudsman may not disclose to: (1) a complainant; (2) another person who is not a parent, guardian, or custodian of the child who was subject of the department of child services' action or omission; or (3) the court, court appointed special advocate, or guardian ad litem of the child in a case that was filed as a child in need of services or a termination of parental rights action; any information that the department of child services could not, by law, reveal to the complainant, parent, guardian, custodian, person, court, court appointed special advocate, or guardian ad litem. (f) If, after reviewing a complaint or conducting an investigation and considering the response of an agency, facility, or program and any other pertinent material, the office of the department of child services ombudsman determines that the complaint has merit or the investigation reveals a problem, the ombudsman may recommend that the agency, facility, or program: (1) consider the matter further; (2) modify or cancel its actions; (3) alter a rule, order, or internal policy; or (4) explain more fully the action in question. (g) At the office of the department of child services ombudsman's request, the agency, facility, or program shall, within a reasonable time, inform the office of the department of child services ombudsman about the action taken on the recommendation or the reasons for not complying with it. (h) The office of the department of child services ombudsman may not investigate the following: (1) A complaint from an employee of the department of child services that relates to the employee's employment relationship with the department of child services. (2) A complaint challenging a department of child services substantiation of abuse or neglect that is currently the subject of a pending administrative review procedure before the exhaustion of administrative remedies provided by law, rule, or written policy. Investigation of any such complaint received shall be stayed until the administrative remedy has been exhausted. However, if the administrative process is not completed or terminated within six (6) months after initiation of the administrative process, the office of child services ombudsman may proceed with its investigation. (i) If the office of the department of child services ombudsman does not investigate a complaint, the office of the department of child services ombudsman shall notify the complainant of the decision not to investigate and the reasons for the decision. Sec. 6. (a) The office of the department of child services ombudsman shall be given appropriate access to department of child services records of a child who is the subject of a complaint that is filed under this chapter. (b) A state or local government agency or entity that has records that are relevant to a complaint or an investigation conducted by an ombudsman shall provide the ombudsman with access to the records. (c) A person is immune from: (1) civil or criminal liability; and (2) actions taken under: Legislative Bulletin 09-6 Special Session Summary Page 27 (A) a professional disciplinary procedure; or (B) procedures related to the termination or imposition of penalties under a contract dealing with an employee or contractor of the department of child services; for the release or disclosure of records to the ombudsman under this chapter, unless the release or disclosure constitutes gross negligence or willful or wanton misconduct. (d) Information or records of a state or local government agency provided to the office of the department of child services ombudsman may not be disclosed to the complainant or others if confidential under laws, rules, or regulations governing the state or local government agency that provided the information or records. Sec. 7. The office of the department of child services ombudsman shall do the following: (1) Establish procedures to receive and investigate complaints. (2) Establish physical, technological, and administrative access controls for all information maintained by the office of the department of child services ombudsman. (3) Except as necessary to investigate and resolve a complaint, ensure that the identity of a complainant will not be disclosed without: (A) the complainant's written consent; or (B) a court order. Sec. 8. The office of the department of child services ombudsman may adopt rules under IC 4-22-2 necessary to carry out this chapter. Sec. 9. An ombudsman is not personally liable for the good faith performance of the ombudsman's official duties. Sec. 10. (a) The office of the department of child services ombudsman shall prepare a report each year on the operations of the office. (b) The office of the department of child services ombudsman shall include the following information in the annual report required under subsection (a): (1) The office of the department of child services ombudsman's activities. (2) The general status of children in Indiana, including: (A) the health and education of children; and (B) the administration or implementation of programs for children. (3) Any other issues, concerns, or information concerning children. (c) A copy of the report shall be provided to the following: (1) The governor. (2) The legislative council. (3) The Indiana department of administration. (4) The department of child services. A report provided under this subsection to the legislative council must be in an electronic format under IC 5-14-6. (d) A copy of the report shall be posted on the department of child services' Internet web site and on any Internet web site maintained by the office of the department of child services ombudsman. (e) An initial report summarizing the activities of the department of child services ombudsman shall be completed by no later than December 1, 2009, and a copy of the report shall be posted on the department of child services' Internet web site and on any Internet web site maintained by the office of the department of child services ombudsman, and shall be provided to the following: (1) The governor. Legislative Bulletin 09-6 Special Session Summary Page 28 (2) The legislative council. (3) The Indiana department of administration. (4) The department of child services. A report provided under this subsection to the legislative council must be in an electronic format under IC 5-14-6. This subsection expires December 31, 2009. Sec. 11. (a) A person who: (1) except as provided in subsection (b), intentionally interferes with or prevents the completion of the work of an ombudsman; (2) knowingly offers compensation to an ombudsman in an effort to affect the outcome of an investigation or a potential investigation; (3) knowingly or intentionally retaliates against another person who provides information to an ombudsman; or (4) knowingly or intentionally threatens an ombudsman, a person who has filed a complaint, or a person who provides information to an ombudsman, because of an investigation or potential investigation; commits interference with the office of the department of child services ombudsman, a Class A misdemeanor. (b) Expungement of records held by the department of child services that occurs by statutory mandate, judicial order or decree, administrative review or process, automatic operation of the Indiana Child Welfare Information System (ICWIS) computer system, or in the normal course of business shall not be considered intentional interference or prevention for the purposes of subsection (a). Sec. 12. The Indiana department of administration shall provide and maintain office space for the office of the department of child services ombudsman. xxxxxxxxxxxxxxxx Political Subdivision Bonding Repayment SECTION 63. IC 5-1-14-10, AS AMENDED BY P.L.146-2008, SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 10. (a) If an issuer has issued obligations under a statute that establishes a maximum term or repayment period for the obligations, notwithstanding that statute, the issuer may continue to make payments of principal, interest, or both, on the obligations after the expiration of the term or period if principal or interest owed to owners of the obligations remains unpaid. (b) This section does not authorize the use of revenues or funds to make payments of principal and interest other than those revenues or funds that were pledged for the payments before the expiration of the term or period. (c) Except as otherwise provided by this section, IC 16-22-8-43, IC 36-7-12-27, or IC 36-714-25.1, or IC 36-9-13-30 (but only with respect to any bonds issued under IC 36-9-13-30 that are secured by a lease entered into by a political subdivision organized and existing under IC 16-22-8), the maximum term or repayment period for obligations issued after June 30, 2008, that are wholly or partially payable from ad valorem property taxes, special benefit taxes on property, or tax increment revenues derived from property taxes may not exceed: (1) the maximum applicable period under federal law, for obligations that are issued to evidence loans made or guaranteed by the federal government or a federal agency; Legislative Bulletin 09-6 Special Session Summary Page 29 (2) twenty-five (25) years, for obligations that are wholly or partially payable from tax increment revenues derived from property taxes; or (3) twenty (20) years , for obligations that are not described in subdivision (1), or (2), and are wholly or partially payable from ad valorem property taxes or special benefit taxes on property. xxxxxxxxxxxxxx State Employees Health Insurance Plan and Schools Participation SECTION 66. IC 5-10-8-2.6, AS AMENDED BY P.L.1-2005, SECTION 76, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 2.6. (a) This section applies only to local unit public employers and their employees. This section does not apply to public safety employees, surviving spouses, and dependents covered by section 2.2 of this chapter. (b) A public employer may provide programs of group insurance for its employees and retired employees. The public employer may, however, exclude part-time employees and persons who provide services to the unit under contract from any group insurance coverage that the public employer provides to the employer's full-time employees. A public employer may provide programs of group health insurance under this section through one (1) of the following methods: (1) By purchasing policies of group insurance. (2) By establishing self-insurance programs. (3) By electing to participate in the local unit group of local units that offer the state employee health plan under section 6.6 of this chapter. (4) If the local unit public employer is a school corporation, by electing to provide the coverage through a state employee health plan under section 6.7 of this chapter. A public employer may provide programs of group insurance other than group health insurance under this section by purchasing policies of group insurance and by establishing self-insurance programs. However, the establishment of a self-insurance program is subject to the approval of the unit's fiscal body. (c) A public employer may pay a part of the cost of group insurance, but shall pay a part of the cost of group life insurance for local employees. A public employer may pay, as supplemental wages, an amount equal to the deductible portion of group health insurance as long as payment of the supplemental wages will not result in the payment of the total cost of the insurance by the public employer. (d) An insurance contract for local employees under this section may not be canceled by the public employer during the policy term of the contract. (e) After June 30, 1986, a public employer shall provide a group health insurance program under subsection (g) to each retired employee: (1) whose retirement date is: (A) after May 31, 1986, for a retired employee who was a teacher (as defined in IC 2018-2-22) for a school corporation; or (B) after June 30, 1986, for a retired employee not covered by clause (A); (2) who will have reached fifty-five (55) years of age on or before the employee's retirement date but who will not be eligible on that date for Medicare coverage as prescribed by 42 U.S.C. 1395 et seq.; Legislative Bulletin 09-6 Special Session Summary Page 30 (3) who will have completed twenty (20) years of creditable employment with a public employer on or before the employee's retirement date, ten (10) years of which must have been completed immediately preceding the retirement date; and (4) who will have completed at least fifteen (15) years of participation in the retirement plan of which the employee is a member on or before the employee's retirement date. (f) A group health insurance program required by subsection (e) must be equal in coverage to that offered active employees and must permit the retired employee to participate if the retired employee pays an amount equal to the total of the employer's and the employee's premiums for the group health insurance for an active employee and if the employee, within ninety (90) days after the employee's retirement date, files a written request with the employer for insurance coverage. However, the employer may elect to pay any part of the retired employee's premiums. (g) A retired employee's eligibility to continue insurance under subsection (e) ends when the employee becomes eligible for Medicare coverage as prescribed by 42 U.S.C. 1395 et seq., or when the employer terminates the health insurance program. A retired employee who is eligible for insurance coverage under subsection (e) may elect to have the employee's spouse covered under the health insurance program at the time the employee retires. If a retired employee's spouse pays the amount the retired employee would have been required to pay for coverage selected by the spouse, the spouse's subsequent eligibility to continue insurance under this section is not affected by the death of the retired employee. The surviving spouse's eligibility ends on the earliest of the following: (1) When the spouse becomes eligible for Medicare coverage as prescribed by 42 U.S.C. 1395 et seq. (2) When the employer terminates the health insurance program. (3) Two (2) years after the date of the employee's death. (4) The date of the spouse's remarriage. (h) This subsection does not apply to an employee who is entitled to group insurance coverage under IC 20-28-10-2(b). An employee who is on leave without pay is entitled to participate for ninety (90) days in any group health insurance program maintained by the public employer for active employees if the employee pays an amount equal to the total of the employer's and the employee's premiums for the insurance. However, the employer may pay all or part of the employer's premium for the insurance. (i) A public employer may provide group health insurance for retired employees or their spouses not covered by subsections (e) through (g) and may provide group health insurance that contains provisions more favorable to retired employees and their spouses than required by subsections (e) through (g). A public employer may provide group health insurance to an employee who is on leave without pay for a longer period than required by subsection (h), and may continue to pay all or a part of the employer's premium for the insurance while the employee is on leave without pay. SECTION 67. IC 5-10-8-6.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 6.7. (a) As used in this section, "state employee health plan" means a: (1) self-insurance program established under section 7(b) of this chapter; or (2) contract with a prepaid health care delivery plan entered into under section 7(c) of this chapter; to provide group health coverage for state employees. Legislative Bulletin 09-6 Special Session Summary Page 31 (b) The state personnel department shall allow a school corporation to elect to provide coverage of health care services for active and retired employees of the school corporation under any state employee health plan. If a school corporation elects to provide coverage of health care services for active and retired employees of the school corporation under a state employee health plan, it must provide coverage for all active and retired employees of the school corporation under the state employee health plan (other than any employees covered by an Indiana comprehensive health insurance association policy) if coverage was provided for these employees under the prior policies. (c) The following apply if a school corporation elects to provide coverage for active and retired employees of the school corporation under subsection (b): (1) The state shall not pay any part of the cost of the coverage. (2) The coverage provided to an active or retired school corporation employee under this section must be the same as the coverage provided to an active or retired state employee under the state employee health plan. (3) Notwithstanding sections 2.2 and 2.6 of this chapter: (A) the school corporation shall pay for the coverage provided to an active or retired school corporation employee under this section an amount not more than the amount paid by the state for coverage provided to an active or retired state employee under the state employee health plan; and (B) an active or retired school corporation employee shall pay for the coverage provided to the active or retired school corporation employee under this section an amount that is at least equal to the amount paid by an active or retired state employee for coverage provided to the active or retired state employee under the state employee health plan. (4) The school corporation shall pay any administrative costs of the school corporation's participation in the state employee health plan. (5) The school corporation shall provide the coverage elected under subsection (b) for a period of at least three (3) years beginning on the date the coverage of the school corporation employees under the state employee health plan begins. (d) The state personnel department shall provide an enrollment period at least every thirty (30) days for a school corporation that elects to provide coverage under subsection (b). (e) The state personnel department may adopt rules under IC 4-22-2 to implement this section. (f) Neither this section nor a school corporation's election to participate in a state employee health plan as provided in this section impairs the rights of an exclusive representative of the certificated or noncertificated employees of the school corporation to collectively bargain all matters related to school employee health insurance programs and benefits. (g) This subsection applies to school corporations that do not elect to provide coverage of health care services for active and retired employees of the school corporation under a state employee health plan as provided in this section. The department of education, with the assistance of the state personnel department, shall for each year after 2010 calculate the difference between: (1) the total cost to be paid by a school corporation for the year to provide coverage of health care services; minus (2) the total cost the school corporation would have paid for the year to provide Legislative Bulletin 09-6 Special Session Summary Page 32 coverage of health care services if the school corporation had elected to provide coverage under a state employee health plan in the preceding year as provided in this section. (h) If the result of the calculation for a school corporation under subsection (g) is positive, for contracts entered into or renewed after 2010 to provide coverage for health care services: (1) the school corporation's employees shall pay the pro rata difference; and (2) the school corporation may not pay the difference on behalf of the school corporation's employees from any funds of the school corporation. xxxxxxxxxxxxxxxxx Annual Adjustment Factors on Real Property by DLGF SECTION 86. IC 6-1.1-4-4.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4.6. (a) If a county assessor fails before July 2 of a particular year to prepare and deliver to the county auditor a complete detailed list of all of the real property listed for taxation in the county as required by IC 6-1.1-5-14 and at least one hundred eighty (180) days have elapsed after the July 1 deadline specified in IC 6-1.1-5-14 for delivering the list, the department of local government finance may develop annual adjustment factors under this section for that year. In developing annual adjustment factors under this section, the department of local government finance shall use data in its possession that is obtained from: (1) the county assessor; or (2) any of the sources listed in the rule, including county or state sales data, government studies, ratio studies, cost and depreciation tables, and other market analyses. (b) Using the data described in subsection (a), the department of local government finance shall propose to establish annual adjustment factors for the affected tax districts for one (1) or more of the classes of real property. The proposal may provide for the equalization of annual adjustment factors in the affected township or county and in adjacent areas. The department of local government finance shall issue notice and provide opportunity for hearing in accordance with IC 6-1.1-14-4 and IC 6-1.1-14-9, as applicable, before issuing final annual adjustment factors. (c) The annual adjustment factors finally determined by the department of local government finance after the hearing required under subsection (b) apply to the annual adjustment of real property under section 4.5 of this chapter for: (1) the assessment date; and (2) the real property; specified in the final determination of the department of local government finance. xxxxxxxxxxxxxxxxx Legislative Bulletin 09-6 Special Session Summary Page 33 Budget Advertisement before September 10 SECTION 114. IC 6-1.1-17-3, AS AMENDED BY P.L.87-2009, SECTION 6, AND AS AMENDED BY P.L.136-2009, SECTION 6, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 3. (a) The proper officers of a political subdivision shall formulate its estimated budget and its proposed tax rate and tax levy on the form prescribed by the department of local government finance and approved by the state board of accounts. The political subdivision shall give notice by publication to taxpayers of: (1) the estimated budget; (2) the estimated maximum permissible levy; (3) the current and proposed tax levies of each fund; and (4) the amounts of excessive levy appeals to be requested. In the notice, the political subdivision shall also state the time and place at which a public hearing will be held on these items. The notice shall be published twice in accordance with IC 53-1 with the first publication at least ten (10) days before the date fixed for the public hearing. Beginning in 2009, the duties required by this subsection must be completed before August September 10 of the calendar year. A political subdivision shall provide the estimated budget and levy information required for the notice under subsection (b) to the county auditor on the schedule determined by the department of local government finance. (b) Beginning in 2010, except as provided in IC 6-1.1-22-8.1(h), before October 1 of a calendar year, the county auditor shall mail to the last known address of each person liable for any property taxes, as shown on the tax duplicate, or to the last known address of the most recent owner shown in the transfer book, a statement that includes: (1) the assessed valuation as of the assessment date in the current calendar year of tangible property on which the person will be liable for property taxes first due and payable in the immediately succeeding calendar year and notice to the person of the opportunity to appeal the assessed valuation under IC 6-1.1-15-1(c) (before July 1, 2008) or IC 6-1.1-15-1 (after June 30, 2008); (2) the amount of property taxes for which the person will be liable to each political subdivision on the tangible property for taxes first due and payable in the immediately succeeding calendar year, taking into account all factors that affect that liability, including: (A) the estimated budget and proposed tax rate and tax levy formulated by the political subdivision under subsection (a); (B) any deductions or exemptions that apply to the assessed valuation of the tangible property; (C) any credits that apply in the determination of the tax liability; and (D) the county auditor's best estimate of the effects on the tax liability that might result from actions of: (i) the county board of tax adjustment; or (ii) the department of local government finance; (3) a prominently displayed notation that: (A) the estimate under subdivision (2) is based on the best information available at the time the statement is mailed; and (B) based on various factors, including potential actions by: (i) the county board of tax adjustment; or Legislative Bulletin 09-6 Special Session Summary Page 34 (ii) the department of local government finance; it is possible that the tax liability as finally determined will differ substantially from the estimate; (4) comparative information showing the amount of property taxes for which the person is liable to each political subdivision on the tangible property for taxes first due and payable in the current year; and (5) the date, time, and place at which the political subdivision will hold a public hearing on the political subdivision's estimated budget and proposed tax rate and tax levy as required under subsection (a). (c) The department of local government finance shall: (1) prescribe a form for; and (2) provide assistance to county auditors in preparing; statements under subsection (b). Mailing the statement described in subsection (b) to a mortgagee maintaining an escrow account for a person who is liable for any property taxes shall not be construed as compliance with subsection (b). (d) (b) The board of directors of a solid waste management district established under IC 13-21 or IC 13-9.5-2 (before its repeal) may conduct the public hearing required under subsection (a): (1) in any county of the solid waste management district; and (2) in accordance with the annual notice of meetings published under IC 13-21-5-2. (e) (c) The trustee of each township in the county shall estimate the amount necessary to meet the cost of township assistance in the township for the ensuing calendar year. The township board shall adopt with the township budget a tax rate sufficient to meet the estimated cost of township assistance. The taxes collected as a result of the tax rate adopted under this subsection are credited to the township assistance fund. (f) (d) This subsection expires January 1, 2009. A county shall adopt with the county budget and the department of local government finance shall certify under section 16 of this chapter a tax rate sufficient to raise the levy necessary to pay the following: (1) The cost of child services (as defined in IC 12-19-7-1) of the county payable from the family and children's fund. (2) The cost of children's psychiatric residential treatment services (as defined in IC 12-197.5-1) of the county payable from the children's psychiatric residential treatment services fund. A budget, tax rate, or tax levy adopted by a county fiscal body or approved or modified by a county board of tax adjustment that is less than the levy necessary to pay the costs described in subdivision (1) or (2) shall not be treated as a final budget, tax rate, or tax levy under section 11 of this chapter xxxxxxxxxxxxxxxx Budget Adoption by November 1 SECTION 116. IC 6-1.1-17-5, AS AMENDED BY P.L.146-2008, SECTION 149, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The officers of political subdivisions shall meet each year to fix the budget, tax rate, and tax levy of their respective subdivisions for the ensuing budget year as follows: Legislative Bulletin 09-6 Special Session Summary Page 35 (1) The board of school trustees of a school corporation that is located in a city having a population of more than one hundred five thousand (105,000) but less than one hundred twenty thousand (120,000), not later than: (A) the time required in section 5.6(b) of this chapter; or (B) for budget years beginning before July 1, 2010, 2011, September 30 November 1 if a resolution adopted under section 5.6(d) of this chapter is in effect. (2) The proper officers of all other political subdivisions, not later than September 30 November 1. (3) The governing body of each school corporation (including a school corporation described in subdivision (1)), not later than the time required under section 5.6(b) of this chapter for budget years beginning after June 30, 2010. 2011. Except in a consolidated city and county and in a second class city, the public hearing required by section 3 of this chapter must be completed at least ten (10) days before the proper officers of the political subdivision meet to fix the budget, tax rate, and tax levy. In a consolidated city and county and in a second class city, that public hearing, by any committee or by the entire fiscal body, may be held at any time after introduction of the budget. (b) Ten (10) or more taxpayers may object to a budget, tax rate, or tax levy of a political subdivision fixed under subsection (a) by filing an objection petition with the proper officers of the political subdivision not more than seven (7) days after the hearing. The objection petition must specifically identify the provisions of the budget, tax rate, and tax levy to which the taxpayers object. (c) If a petition is filed under subsection (b), the fiscal body of the political subdivision shall adopt with its budget a finding concerning the objections in the petition and any testimony presented at the adoption hearing. (d) This subsection does not apply to a school corporation. Each year at least two (2) days before the first meeting after September 20 of the county board of tax adjustment held under IC 6-1.1-29-4, a political subdivision shall file with the county auditor: (1) a statement of the tax rate and levy fixed by the political subdivision for the ensuing budget year; (2) two (2) copies of the budget adopted by the political subdivision for the ensuing budget year; and (3) two (2) copies of any findings adopted under subsection (c). Each year the county auditor shall present these items to the county board of tax adjustment at the board's first meeting under IC 6-1.1-29-4. after September 20 of that year. (e) In a consolidated city and county and in a second class city, the clerk of the fiscal body shall, notwithstanding subsection (d), file the adopted budget and tax ordinances with the county board of tax adjustment within two (2) days after the ordinances are signed by the executive, or within two (2) days after action is taken by the fiscal body to override a veto of the ordinances, whichever is later. (f) If a fiscal body does not fix the budget, tax rate, and tax levy of the political subdivisions for the ensuing budget year as required under this section, the most recent annual appropriations and annual tax levy are continued for the ensuing budget year. xxxxxxxxxxxxxx Legislative Bulletin 09-6 Special Session Summary Page 36 Fiscal Year Budgeting Delayed until after June 30, 2011 SECTION 117. IC 6-1.1-17-5.6, AS AMENDED BY P.L.146-2008, SECTION 150, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5.6. (a) For budget years beginning before July 1, 2010, 2011, this section applies only to a school corporation that is located in a city having a population of more than one hundred five thousand (105,000) but less than one hundred twenty thousand (120,000). For budget years beginning after June 30, 2010, 2011, this section applies to all school corporations. Beginning in 2010, 2011, each school corporation shall adopt a budget under this section that applies from July 1 of the year through June 30 of the following year. In the initial budget adopted by a school corporation in 2010 2011 under this section, the first six (6) months of that initial budget must be consistent with the last six (6) months of the budget adopted by the school corporation for calendar year 2010. 2011. (b) Before February 1 of each year, the officers of the school corporation shall meet to fix the budget for the school corporation for the ensuing budget year, with notice given by the same officers. However, if a resolution adopted under subsection (d) is in effect, the officers shall meet to fix the budget for the ensuing budget year before September 30. (c) Each year, at least two (2) days before the first meeting after September 20 of the county board of tax adjustment held under IC 6-1.1-29-4, the school corporation shall file with the county auditor: (1) a statement of the tax rate and tax levy fixed by the school corporation for the ensuing budget year; (2) two (2) copies of the budget adopted by the school corporation for the ensuing budget year; and (3) any written notification from the department of local government finance under section 16(i) of this chapter that specifies a proposed revision, reduction, or increase in the budget adopted by the school corporation for the ensuing budget year. Each year the county auditor shall present these items to the county board of tax adjustment at the board's first meeting after September 20 of that year. under IC 6-1.1-29-4. (d) This subsection does not apply to budget years after June 30, 2010. 2011. The governing body of the school corporation may adopt a resolution to cease using a school year budget year and return to using a calendar year budget year. A resolution adopted under this subsection must be adopted after January 1 and before July 1. The school corporation's initial calendar year budget year following the adoption of a resolution under this subsection begins on January 1 of the year following the year the resolution is adopted. The first six (6) months of the initial calendar year budget for the school corporation must be consistent with the last six (6) months of the final school year budget fixed by the department of local government finance before the adoption of a resolution under this subsection. Notwithstanding any resolution adopted under this subsection, beginning in 2010, 2011, each school corporation shall adopt a budget under this section that applies from July 1 of the year through June 30 of the following year. (e) A resolution adopted under subsection (d) may be rescinded by a subsequent resolution adopted by the governing body. If the governing body of the school corporation rescinds a Legislative Bulletin 09-6 Special Session Summary Page 37 resolution adopted under subsection (d) and returns to a school year budget year, the school corporation's initial school year budget year begins on July 1 following the adoption of the rescinding resolution and ends on June 30 of the following year. The first six (6) months of the initial school year budget for the school corporation must be consistent with the last six (6) months of the last calendar year budget fixed by the department of local government finance before the adoption of a rescinding resolution under this subsection. xxxxxxxxxxxxxx DLGF Change Political Subdivision Budget (1782 Form Notice) SECTION 123. IC 6-1.1-17-16, AS AMENDED BY P.L.146-2008, SECTION 160, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 16. (a) Subject to the limitations and requirements prescribed in this section, the department of local government finance may revise, reduce, or increase a political subdivision's budget by fund, tax rate, or tax levy which the department reviews under section 8 or 10 of this chapter. (b) Subject to the limitations and requirements prescribed in this section, the department of local government finance may review, revise, reduce, or increase the budget by fund, tax rate, or tax levy of any of the political subdivisions whose tax rates compose the aggregate tax rate within a political subdivision whose budget, tax rate, or tax levy is the subject of an appeal initiated under this chapter. (c) Except as provided in subsections (j) and (k), before the department of local government finance reviews, revises, reduces, or increases a political subdivision's budget by fund, tax rate, or tax levy under this section, the department must hold a public hearing on the budget, tax rate, and tax levy. The department of local government finance shall hold the hearing in the county in which the political subdivision is located. The department of local government finance may consider the budgets by fund, tax rates, and tax levies of several political subdivisions at the same public hearing. At least five (5) days before the date fixed for a public hearing, the department of local government finance shall give notice of the time and place of the hearing and of the budgets by fund, levies, and tax rates to be considered at the hearing. The department of local government finance shall publish the notice in two (2) newspapers of general circulation published in the county. However, if only one (1) newspaper of general circulation is published in the county, the department of local government finance shall publish the notice in that newspaper. (d) Except as provided in subsection (i), IC 20-46, or IC 6-1.1-18.5, the department of local government finance may not increase a political subdivision's budget by fund, tax rate, or tax levy to an amount which exceeds the amount originally fixed by the political subdivision. However, if the department of local government finance determines that IC 5-3-1-2.3(b) applies to the tax rate, tax levy, or budget of the political subdivision, the maximum amount by which the department may increase the tax rate, tax levy, or budget is the amount originally fixed by the political subdivision, and not the amount that was incorrectly published or omitted in the notice described in IC 5-3-1-2.3(b). The department of local government finance shall give the political subdivision written notification specifying any revision, reduction, or increase the department proposes in a political subdivision's tax levy or tax rate. The political subdivision has two (2) weeks ten (10) calendar days from the date the political subdivision receives the notice to Legislative Bulletin 09-6 Special Session Summary Page 38 provide a written response to the department of local government finance's Indianapolis office. The response may include budget reductions, reallocation of levies, a revision in the amount of miscellaneous revenues, and further review of any other item about which, in the view of the political subdivision, the department is in error. The department of local government finance shall consider the adjustments as specified in the political subdivision's response if the response is provided as required by this subsection and shall deliver a final decision to the political subdivision………………. xxxxxxxxxxxxxx Elimination of School Property Tax Control Board SECTION 139. IC 6-1.1-19-1, AS AMENDED BY P.L.146-2008, SECTION 185, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 1. The following definitions apply throughout As used in this chapter, (1) "appeal" refers to an appeal taken to the department of local government finance by or in respect of a school corporation under any of the following: (A) (1) IC 6-1.1-17. (B) (2) IC 20-43. (2) "Tax control board" means the school property tax control board established by section 4.1 of this chapter. xxxxxxxxxxxxxxx Controlled Project – County Voter Registration Office Action on Petition SECTION 145. IC 6-1.1-20-3.5, AS ADDED BY P.L.146-2008, SECTION 193, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.5. (a) This section applies only to a controlled project that meets the following conditions:…………………. (9) The county voter registration office, not more than ten (10) business days after determining that at least one hundred twenty-five (125) persons who signed the petition are registered voters or after receiving the statement from the county auditor under subdivision (8) (as applicable), shall make the final determination of whether a sufficient number of persons have signed the petition. Whenever the name of an individual who signs a petition form as a registered voter contains a minor variation from the name of the registered voter as set forth in the records of the county voter registration office, the signature is presumed to be valid, and there is a presumption that the individual is entitled to sign the petition under this section. Except as otherwise provided in this chapter, in determining whether an individual is a registered voter, the county voter registration office shall apply the requirements and procedures used under IC 3 to determine whether a person is a registered voter for purposes of voting in an election governed by IC 3. However, an individual is not required to comply with the provisions concerning providing proof of identification to be considered a registered voter for purposes of this chapter. A person is entitled to sign a petition only one (1) time in a particular referendum process under this chapter, regardless of whether the person owns more than one (1) parcel of real property within the political subdivision and regardless of whether the person is both a registered voter in Legislative Bulletin 09-6 Special Session Summary Page 39 the political subdivision and the owner of real property within the political subdivision. Notwithstanding any other provision of this section, if a petition is presented to the county voter registration office within thirty-five (35) forty-five (45) days before an election, the county voter registration office may defer acting on the petition, and the time requirements under this section for action by the county voter registration office do not begin to run until five (5) days after the date of the election………………….. xxxxxxxxxxxxxx Construction Referendum Controlled Project Question SECTION 146. IC 6-1.1-20-3.6, AS ADDED BY P.L.146-2008, SECTION 194, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]: Sec. 3.6. (a) Except as provided in section 3.7 of this chapter, this section applies only to a controlled project described in section 3.5(a) of this chapter. (b) If a sufficient petition requesting the application of the local public question process has been filed as set forth in section 3.5 of this chapter, a political subdivision may not impose property taxes to pay debt service on bonds or lease rentals on a lease for a controlled project unless the political subdivision's proposed debt service or lease rental is approved in an election on a local public question held under this section. (c) Except as provided in subsection (j), the following question shall be submitted to the eligible voters at the election conducted under this section: "Shall ________ (insert the name of the political subdivision) issue bonds or enter into a lease to finance ___________ (insert the a brief description of the controlled project), which is estimated to cost not more than _______ (insert the total cost of the project) and is estimated to increase the property tax rate for debt service by ___________ (insert increase in tax rate as determined by the department of local government finance)?". The public question must appear on the ballot in the form approved by the county election board. If the political subdivision proposing to issue bonds or enter into a lease is located in more than one (1) county, the county election board of each county shall jointly approve the form of the public question that will appear on the ballot in each county. The form approved by the county election board may differ from the language certified to the county election board by the county auditor. (d) The county auditor shall certify the public question described in subsection (c) under IC 310-9-3 to the county election board of each county in which the political subdivision is located. After the public question is certified, The certification must occur not later than noon: (1) sixty (60) days before a primary election if the public question is to be placed on the primary or municipal primary election ballot; or (2) August 1 if the public question is to be placed on the general or municipal election ballot. Subject to the certification requirements and deadlines under this subsection and except as provided in subsection (j), the public question shall be placed on the ballot at the next primary election, general election, or municipal election in which all voters of the political subdivision are entitled to vote. Legislative Bulletin 09-6 Special Session Summary Page 40 xxxxxxxxxxxxxx Special Election Dates for Construction Referendums However, if a primary election, general election, or municipal election will not be held in the six (6) month period after the county auditor certifies during the first year in which the public question is eligible to be placed on the ballot under this section and if the political subdivision requests the public question to be placed on the ballot at a special election, the public question shall be placed on the ballot at a special election to be held (1) not earlier than ninety (90) days; and (2) not later than one hundred twenty (120) days; after the public question is certified if the fiscal body of the political subdivision that wishes to issue the bonds or enter into the lease requests the public question to be voted on in a special election. However, in a year in which a general election or municipal election is held, the public question may be placed on the ballot at a special election only if the fiscal body of the political subdivision that requests the special election agrees to on the first Tuesday after the first Monday in May or November of the year. The certification must occur not later than noon sixty (60) days before a special election to be held in May (if the special election is to be held in May) or noon on August 1 (if the special election is to be held in November). However, in 2009, a political subdivision may hold a special election under this section on any date scheduled for the special election if notice of the special election was given before July 1, 2009, to the election division of the secretary of state's office as provided in IC 3-10-8-4. The fiscal body of the political subdivision that requests the special election shall pay the costs of holding the special election. In a year in which a general election is not held and a municipal election is not held, the fiscal body of the political subdivision that requests the special election is not required to pay the costs of holding the special election. The county election board shall give notice under IC 5-3-1 of a special election conducted under this subsection. A special election conducted under this subsection is under the direction of the county election board. The county election board shall take all steps necessary to carry out the special election. (e) The circuit court clerk shall certify the results of the public question to the following: (1) The county auditor of each county in which the political subdivision is located. (2) The department of local government finance. (f) Subject to the requirements of IC 6-1.1-18.5-8, the political subdivision may issue the proposed bonds or enter into the proposed lease rental if a majority of the eligible voters voting on the public question vote in favor of the public question. (g) If a majority of the eligible voters voting on the public question vote in opposition to the public question, both of the following apply: (1) The political subdivision may not issue the proposed bonds or enter into the proposed lease rental. (2) Another public question under this section on the same or a substantially similar project may not be submitted to the voters earlier than one (1) year after the date of the election. (h) IC 3, to the extent not inconsistent with this section, applies to an election held under this section. (i) A political subdivision may not artificially divide a capital project into multiple capital Legislative Bulletin 09-6 Special Session Summary Page 41 projects in order to avoid the requirements of this section and section 3.5 of this chapter. xxxxxxxxxxxxx Withdrawing a Controlled Project from the Ballot (j) This subsection applies to a political subdivision for which a petition requesting a public question has been submitted under section 3.5 of this chapter. The legislative body (as defined in IC 36-1-2-9) of the political subdivision may adopt a resolution to withdraw a controlled project from consideration in a public question. If the legislative body provides a certified copy of the resolution to the county auditor and the county election board not later than forty-nine (49) days before the election at which the public question would be on the ballot, the public question on the controlled project shall not be placed on the ballot and the public question on the controlled project shall not be held, regardless of whether the county auditor has certified the public question to the county election board. If the withdrawal of a public question under this subsection requires the county election board to reprint ballots, the political subdivision withdrawing the public question shall pay the costs of reprinting the ballots. If a political subdivision withdraws a public question under this subsection that would have been held at a special election and the county election board has printed the ballots before the legislative body of the political subdivision provides a certified copy of the withdrawal resolution to the county auditor and the county election board, the political subdivision withdrawing the public question shall pay the costs incurred by the county in printing the ballots. If a public question on a controlled project is withdrawn under this subsection, a public question under this section on the same controlled project or a substantially similar controlled project may not be submitted to the voters earlier than one (1) year after the date the resolution withdrawing the public question is adopted. xxxxxxxxxxxxx Construction Referendum Information on the DLGF Web site (k) If a public question regarding a controlled project is placed on the ballot to be voted on at a public question under this section, the political subdivision shall submit to the department of local government finance, at least thirty (30) days before the election, the following information regarding the proposed controlled project for posting on the department's Internet web site: (1) The cost per square foot of any buildings being constructed as part of the controlled project. (2) The effect that approval of the controlled project would have on the political subdivision's property tax rate. (3) The maximum term of the bonds or lease. (4) The maximum principal amount of the bonds or the maximum lease rental for the lease. (5) The estimated interest rates that will be paid and the total interest costs associated Legislative Bulletin 09-6 Special Session Summary Page 42 with the bonds or lease. (6) The purpose of the bonds or lease. (7) In the case of a controlled project proposed by a school corporation: (A) the current and proposed square footage of school building space per student; (B) enrollment patterns within the school corporation; and (C) the age and condition of the current school facilities. xxxxxxxxxxxxx Public Official Advocating for a Controlled Project – No Public Monies SECTION 148. IC 6-1.1-20-10, AS AMENDED BY P.L.146-2008, SECTION 199, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 10. (a) This section applies to a political subdivision that adopts an ordinance or a resolution making a preliminary determination to issue bonds or enter into a lease. During the period commencing with the adoption of the ordinance or resolution and, if a petition and remonstrance process is commenced under section 3.2 of this chapter, continuing through the sixty (60) day period commencing with the notice under section 3.2(b)(1) of this chapter, the political subdivision seeking to issue bonds or enter into a lease for the proposed controlled project may not promote a position on the petition or remonstrance by doing any of the following: (1) Allowing facilities or equipment, including mail and messaging systems, owned by the political subdivision to be used for public relations purposes to promote a position on the petition or remonstrance, unless equal access to the facilities or equipment is given to persons with a position opposite to that of the political subdivision. (2) Making an expenditure of money from a fund controlled by the political subdivision to promote a position on the petition or remonstrance or to pay for the gathering of signatures on a petition or remonstrance. This subdivision does not prohibit a political subdivision from making an expenditure of money to an attorney, an architect, registered professional engineer, a construction manager, or a financial adviser for professional services provided with respect to a controlled project. (3) Using an employee to promote a position on the petition or remonstrance during the employee's normal working hours or paid overtime, or otherwise compelling an employee to promote a position on the petition or remonstrance at any time. (4) In the case of a school corporation, promoting a position on a petition or remonstrance by: (A) using students to transport written materials to their residences or in any way directly involving students in a school organized promotion of a position; or (B) including a statement within another communication sent to the students' residences. However, this section does not prohibit an employee of the political subdivision from carrying out duties with respect to a petition or remonstrance that are part of the normal and regular conduct of the employee's office or agency. (b) A person may not solicit or collect signatures for a petition or remonstrance on property owned or controlled by the political subdivision. (c) The staff and employees of a school corporation may not personally identify a student as the child of a parent or guardian who supports or opposes a petition or remonstrance. Legislative Bulletin 09-6 Special Session Summary Page 43 (d) A person or an organization that has a contract or arrangement (whether formal or informal) with a school corporation for the use of any of the school corporation's facilities may not spend any money to promote a position on the petition or remonstrance. A person or an organization that violates this subsection commits a Class A infraction. (e) An attorney, an architect, registered professional engineer, a construction manager, or a financial adviser for professional services provided with respect to a controlled project may not spend any money to promote a position on the petition or remonstrance. A person who violates this subsection: (1) commits a Class A infraction; and (2) is barred from performing any services with respect to the controlled project. (f) An elected or appointed public official of the political subdivision may personally advocate for or against a position on the petition or remonstrance so long as it is not done by using public funds. xxxxxxxxxxxx Student Using the Student Newspaper or Broadcast to Speak about a Controlled Project Ballot SECTION 149. IC 6-1.1-20-10.1, AS ADDED BY P.L.146-2008, SECTION 200, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 10.1. (a) This section applies only to a political subdivision that, after June 30, 2008, adopts an ordinance or a resolution making a preliminary determination to issue bonds or enter into a lease subject to sections 3.5 and 3.6 of this chapter. (b) During the period beginning with the adoption of the ordinance or resolution and continuing through the day on which a local public question is submitted to the voters of the political subdivision under section 3.6 of this chapter, the political subdivision seeking to issue bonds or enter into a lease for the proposed controlled project may not promote a position on the local public question by doing any of the following: (1) Allowing facilities or equipment, including mail and messaging systems, owned by the political subdivision to be used for public relations purposes to promote a position on the local public question, unless equal access to the facilities or equipment is given to persons with a position opposite to that of the political subdivision. (2) Making an expenditure of money from a fund controlled by the political subdivision to promote a position on the local public question. This subdivision does not prohibit a political subdivision from making an expenditure of money to an attorney, an architect, a registered professional engineer, a construction manager, or a financial adviser for professional services provided with respect to a controlled project. (3) Using an employee to promote a position on the local public question during the employee's normal working hours or paid overtime, or otherwise compelling an employee to promote a position on the local public question at any time. (4) In the case of a school corporation, promoting a position on a local public question by: (A) using students to transport written materials to their residences or in any way directly involving students in a school organized promotion of a position; or (B) including a statement within another communication sent to the students' residences. Legislative Bulletin 09-6 Special Session Summary Page 44 However, this section does not prohibit an employee of the political subdivision from carrying out duties with respect to a local public question that are part of the normal and regular conduct of the employee's office or agency. (c) The staff and employees of a school corporation may not personally identify a student as the child of a parent or guardian who supports or opposes a controlled project subject to a local public question held under section 3.6 of this chapter. (d) A person or an organization that has a contract or arrangement (whether formal or informal) with a school corporation for the use of any of the school corporation's facilities may not spend any money to promote a position on a local public question. A person or an organization that violates this subsection commits a Class A infraction. (e) An attorney, an architect, a registered professional engineer, a construction manager, or a financial adviser for professional services provided with respect to a controlled project may not spend any money to promote a position on a local public question. A person who violates this subsection: (1) commits a Class A infraction; and (2) is barred from performing any services with respect to the controlled project. (f) An elected or appointed public official of the political subdivision may personally advocate for or against a position on the local public question so long as it is not done by using public funds. (g) A student may use school equipment or facilities to report or editorialize about a local public question as part of the news coverage of the referendum by student newspaper or broadcast. xxxxxxxxxxxxx Distribution of 2008 Taxes Received in 2009 SECTION 165. IC 6-1.1-27-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) This section applies if: (1) a school corporation did not receive a property tax distribution that was at least the amount of the school corporation's actual general fund property tax levy for a particular year because of property taxes not being paid when due, as determined by the department of local government finance; and (2) delinquent property taxes are paid that are attributable to a year referred to in subdivision (1). (b) The county auditor shall distribute to a school corporation the school corporation's proportionate share of any delinquent property taxes paid that are attributable to a year referred to in subsection (a) in the amount that would have been distributed to the school corporation with respect to the school corporation's general fund. The school corporation shall deposit the distribution in the school corporation's general fund. xxxxxxxxxxxxxx Legislative Bulletin 09-6 Special Session Summary Page 45 Eliminates Pre-school Special Education Fund SECTION 211. IC 6-3.5-1.1-14, AS AMENDED BY P.L.146-2008, SECTION 328, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]: Sec. 14. (a) In determining the amount of property tax replacement credits civil taxing units and school corporations of a county are entitled to receive during a calendar year, the department of local government finance shall consider only property taxes imposed on tangible property that was assessed in that county. (b) If a civil taxing unit or a school corporation is located in more than one (1) county and receives property tax replacement credits from one (1) or more of the counties, then the property tax replacement credits received from each county shall be used only to reduce the property tax rates that are imposed within the county that distributed the property tax replacement credits. (c) A civil taxing unit shall treat any property tax replacement credits that it receives or is to receive during a particular calendar year as a part of its property tax levy for that same calendar year for purposes of fixing its budget and for purposes of the property tax levy limits imposed by IC 6-1.1-18.5. (d) Subject to subsection (e), if a civil taxing unit or school corporation of an adopting county does not impose a property tax levy that is first due and payable in a calendar year in which property tax replacement credits are being distributed, the civil taxing unit or school corporation is entitled to use the property tax replacement credits distributed to the civil taxing unit or school corporation for any purpose for which a property tax levy could be used. (e) A school corporation shall treat any property tax replacement credits that the school corporation receives or is to receive during a particular calendar year as a part of its property tax levy for its debt service fund, capital projects fund, transportation fund, and school bus replacement fund and special education preschool fund in proportion to the levy for each of these funds for that same calendar year for purposes of fixing its budget. A school corporation shall allocate the property tax replacement credits described in this subsection to all five (5) four (4) funds in proportion to the levy for each fund. xxxxxxxxxxxxxxxxx DOE – Student Test Number Information SECTION 303. IC 20-19-3-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 9. Beginning January 1, 2010, the department may obtain and maintain student test number information in a manner and form that permits any person who is authorized to review the information, to: (1) access the information at any time; and (2) accurately determine: (A) where each student is enrolled and attending classes; and (B) the number of students enrolled in a school corporation or charter school and residing in the area served by a school corporation; as of any date after December 31, 2009, occurring before two (2) regular instructional days before the date of the inquiry. Each school corporation and charter school shall provide the information to the Legislative Bulletin 09-6 Special Session Summary Page 46 department in the form and on a schedule that permits the department to comply with this section. The department shall provide technical assistance to school corporations and charter schools to assist school corporations and charter schools in complying with this section. xxxxxxxxxxxxxxxx David C. Ford Educational Technology Fund SECTION 305. IC 20-20-13-6, AS AMENDED BY P.L.31-2009, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 6. (a) The Senator David C. Ford educational technology fund is established to extend educational technologies to elementary and secondary schools. The fund may be used for: (1) the 4R's technology grant program to assist school corporations (on behalf of public schools) in purchasing technology equipment: (A) for kindergarten and grade 1 students, to learn reading, writing, and arithmetic using technology; (B) for students in all grades, to understand that technology is a tool for learning; and (C) for students in kindergarten through grade 3 who have been identified as needing remediation, to offer daily remediation opportunities using technology to prevent those students from failing to make appropriate progress at the particular grade level; (2) a school technology program developed by the department. The program may include grants to school corporations for the purchase of: (A) equipment, hardware, and software; (B) learning and teaching systems; and (C) other materials; that promote student learning, as determined by the department. (2) (3) providing educational technologies, including computers in the homes of students; (3) (4) conducting educational technology training for teachers; and (4) (5) other innovative educational technology programs. (b) The department may also use money in the fund under contracts entered into with the office of technology established by IC 4-13.1-2-1 to study the feasibility of establishing an information telecommunications gateway that provides access to information on employment opportunities, career development, and instructional services from data bases operated by the state among the following: (1) Elementary and secondary schools. (2) Postsecondary educational institutions. (3) Career and technical educational centers and institutions that are not postsecondary educational institutions. (4) Libraries. (5) Any other agencies offering education and training programs. (c) The fund consists of: (1) state appropriations; (2) private donations to the fund; Legislative Bulletin 09-6 Special Session Summary Page 47 (3) money directed to the fund from the corporation for educational technology under IC 20-20-15; or (4) any combination of the amounts described in subdivisions (1) through (3). (d) The fund shall be administered by the department. (e) Unexpended money appropriated to or otherwise available in the fund at the end of a state fiscal year does not revert to the state general fund but remains available to the department for use under this chapter. (f) Subject to section 7 of this chapter, a school corporation may use money from the school corporation's capital projects fund as permitted under IC 20-40-8 for educational technology equipment. xxxxxxxxxxxxxxx Circuit Breaker Replacement Grants SECTION 306. IC 20-20-36.2-5, AS ADDED BY P.L.1-2009, SECTION 120, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]: Sec. 5. (a) An eligible school corporation's circuit breaker replacement amount for 2009 is equal to the result determined under STEP FOUR of the following formula: STEP ONE: Determine the amount of credits granted against the eligible school corporation's combined levy for the eligible school corporation's debt service fund, capital projects fund, transportation fund, school bus replacement fund, and racial balance fund. STEP TWO: Determine the sum of the STEP ONE amounts for all eligible school corporations in Indiana. STEP THREE: Divide fifty million dollars ($50,000,000) the lesser of the STEP TWO amount or forty million dollars ($40,000,000) by the STEP TWO amount, rounding to the nearest ten thousandth (0.0001). STEP FOUR: Multiply the STEP THREE result by the STEP ONE amount, rounding to the nearest dollar ($1). (b) An eligible school corporation is entitled to a grant under this chapter in a calendar year. The grant is equal to the eligible school corporation's circuit breaker replacement amount, as determined for calendar year 2010. An eligible school corporation's circuit breaker replacement amount for 2010 is equal to the result determined under STEP FOUR SIX of the following formula: STEP ONE: Determine the amount of credits granted against the eligible school corporation's combined levy for the school corporation's debt service fund, capital projects fund, transportation fund, school bus replacement fund, and racial balance fund. STEP TWO: Determine an amount equal to two percent (2%) of the school corporation's total combined property tax levy for 2010, rounded to the nearest one dollar ($1). STEP THREE: Determine the greater of zero (0) or the result of the STEP ONE amount minus the STEP TWO amount. STEP FOUR: Determine the sum of the STEP ONE THREE amounts for all eligible school corporations in Indiana. Legislative Bulletin 09-6 Special Session Summary Page 48 STEP THREE: Divide seventy FIVE: Determine the result of the lesser of: (A) one (1); or (B) the result of sixty million dollars ($70,000,000) ($60,000,000) divided by the STEP TWO FOUR amount, rounding to the nearest ten thousandth (0.0001). STEP FOUR: SIX: Multiply the STEP THREE FIVE result by the STEP ONE THREE amount, rounding to the nearest dollar ($1). xxxxxxxxxxxxxxxxxxx Prairie Township Consolidation SECTION 310. IC 20-23-6-18 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 18. (a) Before January 1, 2011, Prairie Township School Corporation shall reorganize by consolidating with an adjacent school corporation under this chapter. (c) If the governing body of Prairie Township School Corporation does not comply with this section before January 1, 2011, the state board shall, after December 31, 2010, develop a reorganization plan for the school corporation and require the governing body to implement the plan. xxxxxxxxxxxxxxxxxx Facilities Incentive Grants Program SECTION 314. IC 20-24-7-11, AS ADDED BY P.L.246-2005, SECTION 129, IS CORRECTED AND IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. (a) If the United States Department of Education approves a new competition for states to receive matching funds for charter school facilities, the department shall pursue this federal funding. (b) There is appropriated to the department of education ten million dollars ($10,000,000) from the common school fund interest balance in the state general fund to provide state matching funds for the federal funding described in subsection (a) for the benefit of charter schools, beginning July 1, 2005, and ending June 30, 2007. (b) The department shall use the common school fund interest balance to provide state matching funds for the federal funding described in subsection (a) for the benefit of charter schools. (c) The department shall develop guidelines and the state board shall adopt rules under IC 422-2 necessary to implement this section. (c) To increase the state's opportunity to receive matching funds from the United States Department of Education, the department shall develop a facilities incentive grants program before January 1, 2010. Legislative Bulletin 09-6 Special Session Summary Page 49 (d) The department shall use the priority criteria set forth in 21 U.S.C. 7221d(b) and 34 CFR 226.12 through 34 CFR 226.14 to develop the facilities incentive grants program. xxxxxxxxxxxxxxxxxxx Virtual Charter Schools SECTION 315. IC 20-24-7-13 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 13. (a) As used in this SECTION, "virtual charter school" means any charter school, including a conversion charter school, that provides for the delivery of more than fifty percent (50%) of instruction to students through: (1) virtual distance learning; (2) online technologies; or (3) computer based instruction. (b) The department shall establish a pilot program to provide funding for a statewide total of up to two hundred (200) students who attend virtual charter schools in the school year ending in 2010 and five hundred (500) students who attend virtual charter schools in the school year ending in 2011. The department shall choose an entity or entities to operate the virtual charter school. The pilot program must focus on children who have medical disabilities or circumstances that prevent them from attending school or for whom a virtual charter school is a better alternative than a traditional school. At least seventy-five percent (75%) of the students enrolled in virtual charter schools under this section must have been included in the ADM count for the previous school year. (c) A virtual charter school is entitled to receive funding from the state in an amount equal to the product of: (1) the number of students included in the virtual charter school's ADM who are participating in the pilot program; multiplied by (2) eighty percent (80%) of the statewide average basic tuition support. (d) The department shall adopt rules under IC 4-22-2 to govern the operation of virtual charter schools. (e) Beginning in 2009, the department shall before December 1 of each year submit an annual report to the state budget committee concerning the program under this section. xxxxxxxxxxxxxxxxx State Employee Health Plan Participation SECTION 316. IC 20-26-5-4, AS AMENDED BY P.L.168-2006, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 4. In carrying out the school purposes of a school corporation, the governing body acting on the school corporation's behalf Legislative Bulletin 09-6 Special Session Summary Page 50 has the following specific powers: (1) In the name of the school corporation, to sue and be sued and to enter into contracts in matters permitted by applicable law. (2) To take charge of, manage, and conduct the educational affairs of the school corporation and to establish, locate, and provide the necessary schools, school libraries, other libraries where permitted by law, other buildings, facilities, property, and equipment. (3) To appropriate from the school corporation's general fund an amount, not to exceed the greater of three thousand dollars ($3,000) per budget year or one dollar ($1) per pupil, not to exceed twelve thousand five hundred dollars ($12,500), based on the school corporation's previous year's ADM, to promote the best interests of the school corporation through: (A) the purchase of meals, decorations, memorabilia, or awards; (B) provision for expenses incurred in interviewing job applicants; or (C) developing relations with other governmental units. (4) To: (A) Acquire, construct, erect, maintain, hold, and contract for construction, erection, or maintenance of real estate, real estate improvements, or an interest in real estate or real estate improvements, as the governing body considers necessary for school purposes, including buildings, parts of buildings, additions to buildings, rooms, gymnasiums, auditoriums, playgrounds, playing and athletic fields, facilities for physical training, buildings for administrative, office, warehouse, repair activities, or housing school owned buses, landscaping, walks, drives, parking areas, roadways, easements and facilities for power, sewer, water, roadway, access, storm and surface water, drinking water, gas, electricity, other utilities and similar purposes, by purchase, either outright for cash (or under conditional sales or purchase money contracts providing for a retention of a security interest by the seller until payment is made or by notes where the contract, security retention, or note is permitted by applicable law), by exchange, by gift, by devise, by eminent domain, by lease with or without option to purchase, or by lease under IC 20-47-2, IC 20-47-3, or IC 20-47-5. (B) Repair, remodel, remove, or demolish, or to contract for the repair, remodeling, removal, or demolition of the real estate, real estate improvements, or interest in the real estate or real estate improvements, as the governing body considers necessary for school purposes. (C) Provide for conservation measures through utility efficiency programs or under a guaranteed savings contract as described in IC 36-1-12.5. (5) To acquire personal property or an interest in personal property as the governing body considers necessary for school purposes, including buses, motor vehicles, equipment, apparatus, appliances, books, furniture, and supplies, either by cash purchase or under conditional sales or purchase money contracts providing for a security interest by the seller until payment is made or by notes where the contract, security, retention, or note is permitted by applicable law, by gift, by devise, by loan, or by lease with or without option to purchase and to repair, remodel, remove, relocate, and demolish the personal property. All purchases and contracts specified under the powers authorized under subdivision (4) and this subdivision are subject solely to applicable law relating to purchases and contracting by municipal corporations in general and to the supervisory control of state agencies as provided in section 6 of this chapter. (6) To sell or exchange real or personal property or interest in real or personal property that, in the opinion of the governing body, is not necessary for school purposes, in accordance with IC 20-26-7, to demolish or otherwise dispose of the property if, in the opinion of the governing body, the property is not necessary for school purposes and is worthless, and to pay the expenses Legislative Bulletin 09-6 Special Session Summary Page 51 for the demolition or disposition. (7) To lease any school property for a rental that the governing body considers reasonable or to permit the free use of school property for: (A) civic or public purposes; or (B) the operation of a school age child care program for children who are at least five (5) years of age and less than fifteen (15) years of age that operates before or after the school day, or both, and during periods when school is not in session; if the property is not needed for school purposes. Under this subdivision, the governing body may enter into a long term lease with a nonprofit corporation, community service organization, or other governmental entity, if the corporation, organization, or other governmental entity will use the property to be leased for civic or public purposes or for a school age child care program. However, if payment for the property subject to a long term lease is made from money in the school corporation's debt service fund, all proceeds from the long term lease must be deposited in the school corporation's debt service fund so long as payment for the property has not been made. The governing body may, at the governing body's option, use the procedure specified in IC 36-1-11-10 in leasing property under this subdivision. (8) To: (A) Employ, contract for, and discharge superintendents, supervisors, principals, teachers, librarians, athletic coaches (whether or not they are otherwise employed by the school corporation and whether or not they are licensed under IC 20-28-5), business managers, superintendents of buildings and grounds, janitors, engineers, architects, physicians, dentists, nurses, accountants, teacher aides performing noninstructional duties, educational and other professional consultants, data processing and computer service for school purposes, including the making of schedules, the keeping and analyzing of grades and other student data, the keeping and preparing of warrants, payroll, and similar data where approved by the state board of accounts as provided below, and other personnel or services as the governing body considers necessary for school purposes. (B) Fix and pay the salaries and compensation of persons and services described in this subdivision. (C) Classify persons or services described in this subdivision and to adopt schedules of salaries or compensation. (D) Determine the number of the persons or the amount of the services employed or contracted for as provided in this subdivision. (E) Determine the nature and extent of the duties of the persons described in this subdivision. The compensation, terms of employment, and discharge of teachers are, however, subject to and governed by the laws relating to employment, contracting, compensation, and discharge of teachers. The compensation, terms of employment, and discharge of bus drivers are subject to and governed by laws relating to employment, contracting, compensation, and discharge of bus drivers. The forms and procedures relating to the use of computer and data processing equipment in handling the financial affairs of the school corporation must be submitted to the state board of accounts for approval so that the services are used by the school corporation when the governing body determines that it is in the best interest of the school corporation while at the same time providing reasonable accountability for the funds expended. Legislative Bulletin 09-6 Special Session Summary Page 52 (9) Notwithstanding the appropriation limitation in subdivision (3), when the governing body by resolution considers a trip by an employee of the school corporation or by a member of the governing body to be in the interest of the school corporation, including attending meetings, conferences, or examining equipment, buildings, and installation in other areas, to permit the employee to be absent in connection with the trip without any loss in pay and to reimburse the employee or the member the employee's or member's reasonable lodging and meal expenses and necessary transportation expenses. To pay teaching personnel for time spent in sponsoring and working with school related trips or activities. (10) To transport children to and from school, when in the opinion of the governing body the transportation is necessary, including considerations for the safety of the children and without regard to the distance the children live from the school. The transportation must be otherwise in accordance with applicable law. (11) To provide a lunch program for a part or all of the students attending the schools of the school corporation, including the establishment of kitchens, kitchen facilities, kitchen equipment, lunch rooms, the hiring of the necessary personnel to operate the lunch program, and the purchase of material and supplies for the lunch program, charging students for the operational costs of the lunch program, fixing the price per meal or per food item. To operate the lunch program as an extracurricular activity, subject to the supervision of the governing body. To participate in a surplus commodity or lunch aid program. (12) To purchase textbooks, to furnish textbooks without cost or to rent textbooks to students, to participate in a textbook aid program, all in accordance with applicable law. (13) To accept students transferred from other school corporations and to transfer students to other school corporations in accordance with applicable law. (14) To make budgets, to appropriate funds, and to disburse the money of the school corporation in accordance with applicable law. To borrow money against current tax collections and otherwise to borrow money, in accordance with IC 20-48-1. (15) To purchase insurance or to establish and maintain a program of self-insurance relating to the liability of the school corporation or the school corporation's employees in connection with motor vehicles or property and for additional coverage to the extent permitted and in accordance with IC 34-13-3-20. To purchase additional insurance or to establish and maintain a program of self-insurance protecting the school corporation and members of the governing body, employees, contractors, or agents of the school corporation from liability, risk, accident, or loss related to school property, school contract, school or school related activity, including the purchase of insurance or the establishment and maintenance of a self-insurance program protecting persons described in this subdivision against false imprisonment, false arrest, libel, or slander for acts committed in the course of the persons' employment, protecting the school corporation for fire and extended coverage and other casualty risks to the extent of replacement cost, loss of use, and other insurable risks relating to property owned, leased, or held by the school corporation. To: (A) participate in a state employee health plan under IC 5-10-8-6.6 or IC 5-10-8-6.7; (B) purchase insurance; or (C) establish and maintain a program of self-insurance; to benefit school corporation employees, including accident, sickness, health, or dental coverage, provided that a plan of self-insurance must include an aggregate stop-loss provision. (16) To make all applications, to enter into all contracts, and to sign all documents necessary for the receipt of aid, money, or property from the state, the federal government, or from any other source. Legislative Bulletin 09-6 Special Session Summary Page 53 (17) To defend a member of the governing body or any employee of the school corporation in any suit arising out of the performance of the member's or employee's duties for or employment with, the school corporation, if the governing body by resolution determined that the action was taken in good faith. To save any member or employee harmless from any liability, cost, or damage in connection with the performance, including the payment of legal fees, except where the liability, cost, or damage is predicated on or arises out of the bad faith of the member or employee, or is a claim or judgment based on the member's or employee's malfeasance in office or employment. (18) To prepare, make, enforce, amend, or repeal rules, regulations, and procedures: (A) for the government and management of the schools, property, facilities, and activities of the school corporation, the school corporation's agents, employees, and pupils and for the operation of the governing body; and (B) that may be designated by an appropriate title such as "policy handbook", "bylaws", or "rules and regulations". (19) To ratify and approve any action taken by a member of the governing body, an officer of the governing body, or an employee of the school corporation after the action is taken, if the action could have been approved in advance, and in connection with the action to pay the expense or compensation permitted under IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-4012, and IC 20-48-1 or any other law. (20) To exercise any other power and make any expenditure in carrying out the governing body's general powers and purposes provided in this chapter or in carrying out the powers delineated in this section which is reasonable from a business or educational standpoint in carrying out school purposes of the school corporation, including the acquisition of property or the employment or contracting for services, even though the power or expenditure is not specifically set out in this chapter. The specific powers set out in this section do not limit the general grant of powers provided in this chapter except where a limitation is set out in IC 20-261 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and IC 20-48-1 by specific language or by reference to other law. xxxxxxxxxxxxxxxxxxxxx Bus Drivers Requirements from Special Purpose Bus Requirements SECTION 318. IC 20-27-9-5, AS AMENDED BY P.L.146-2009, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) A special purpose bus may be used: (1) by a school corporation to provide regular transportation of a student between one (1) school and another school but not between the student's residence and the school; (2) to transport students and their supervisors, including coaches, managers, and sponsors to athletic or other extracurricular school activities and field trips; (3) by a school corporation to provide transportation between an individual's residence and the school for an individual enrolled in a special program for the habilitation or rehabilitation of persons with a developmental or physical disability; and Legislative Bulletin 09-6 Special Session Summary Page 54 (4) to transport homeless students under IC 20-27-12. (b) The mileage limitation of section 3 of this chapter does not apply to special purpose buses. (c) The operator of a special purpose bus must be at least twenty-one (21) years of age, be authorized by the school corporation, and meet the following requirements: (1) If the special purpose bus has a capacity of less than sixteen (16) passengers, the operator must (A) hold a valid: (i) (A) operator's; (ii) (B) chauffeur's; (iii) (C) public passenger chauffeur's; or (iv) (D) commercial driver's; license. and (B) meet the requirements for a school bus driver set forth in IC 20-27-8-4. (2) If the special purpose bus has a capacity of more than fifteen (15) passengers, the operator must meet the requirements for a school bus driver set out in IC 20-27-8. (d) A special purpose bus is not required to be constructed, equipped, or painted as specified for school buses under this article or by the rules of the committee. (e) An owner or operator of a special purpose bus, other than a special purpose bus owned or operated by a school corporation or a nonpublic school, is subject to IC 8-2.1. xxxxxxxxxxxxxxxxxxx Reduction in Staff Date Changes SECTION 319. IC 20-28-7-9, AS AMENDED BY P.L.38-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 9. (a) Before a teacher is refused continuation of the contract under section 8 of this chapter, the teacher has the following rights, which shall be strictly construed: (1) The principal of the school at which the teacher teaches must provide the teacher with an annual written evaluation of the teacher's performance before January 1 of each year. Upon the request of a nonpermanent teacher, delivered in writing to the principal not later than thirty (30) days after the teacher receives the evaluation required by this section, the principal shall provide the teacher with an additional written evaluation. (2) On or before May June 1 in an even-numbered year and the later of June 15 or the date a budget act is enacted by the general assembly in an odd-numbered year, the school corporation shall notify the teacher that the governing body will consider nonrenewal of the contract for the next school term. The notification must be: (A) written; and (B) delivered in person or mailed by registered or certified mail to the teacher at the teacher's last known address. (b) The notice in subsection (a)(2) must include a written statement, which: (1) may be developed in executive session; and Legislative Bulletin 09-6 Special Session Summary Page 55 (2) is not a public document; giving the reasons for the consideration of the nonrenewal of the teacher's contract. (c) For reasons other than a reduction in force, the notice in subsection (a)(2) must inform the teacher that, not later than ten (10) days after the teacher's receipt of the notice, the teacher may request a conference under section 10 of this chapter. (d) If the reason for nonrenewal is reduction in force, the teacher may request a conference as provided in section 10 of this chapter. xxxxxxxxxxxxxxxxxxxx Employee Evaluation Using Test Results SECTION 320. IC 20-28-11-3, AS ADDED BY P.L.1-2005, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 3. Each plan: (1) must provide for the improvement of the performance of the individuals evaluated; (2) must provide for the growth and development of the individuals evaluated; (3) must require periodic assessment of the effectiveness of the plan; (4) must provide that nonpermanent and semipermanent teachers receive: (A) an evaluation on or before December 31 each year; and (B) if requested by that teacher, an additional evaluation on or before March 1 of the following year; and (5) may provide a basis for making employment decisions; and (6) may provide that collective program results of tests used by the school corporation may be used as a factor, but not the sole factor, to evaluate all educators in order to enable the state to compete for United States Department of Education funding. If collective testing results are used as a factor in evaluations by the school corporation, they must be applied uniformly to all educators. However, the plan may not provide for an evaluation that is based in whole or in part on the ISTEP program test scores of the students in the school corporation. xxxxxxxxxxxxxxxxxxxxx School Distribution Formula SECTION 321. IC 20-33-8.5-5, AS AMENDED BY P.L.234-2007, SECTION 228, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 5. The agreement must provide how the expenses of supervising a student who has been suspended or expelled are funded. A school corporation may not be required to expend more than the transition to foundation revenue per adjusted ADM amount (as defined in IC 20-43-1-29.3) determined under IC 20-43-5-6) for each student referred under the agreement…….. Legislative Bulletin 09-6 Special Session Summary Page 56 SECTION 323. IC 20-43-1-1, AS AMENDED BY P.L.234-2007, SECTION 232, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 1. This article expires January 1, 2010. 2012. SECTION 324. IC 20-43-1-8, AS ADDED BY P.L.2-2006, SECTION 166, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 8. "Basic tuition support" means the part of a school corporation's state tuition support for basic programs determined under IC 20-43-6-5. IC 20-43-6-3. SECTION 325. IC 20-43-1-25, AS ADDED BY P.L.2-2006, SECTION 166, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 25. "State tuition support" means the amount of state funds to be distributed to: (1) a school corporation other than a virtual charter school in any calendar year under this article for all grants, distributions, and awards described in IC 20-43-2-3; and (2) a virtual charter school in any calendar year under IC 20-24-7-13. SECTION 326. IC 20-43-1-21.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]: Sec. 21.5. "Restoration grant" refers to a grant under IC 20-43-12. SECTION 327. IC 20-43-1-31 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 31. "Virtual charter school" has the meaning set forth in IC 20-24-7-13. SECTION 328. IC 20-43-1-32 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]: Sec. 32. For purposes of the calculation of state tuition support under this article and for purposes of restoration grants, a school corporation's fiscal year is the calendar year. SECTION 329. IC 20-43-2-2, AS AMENDED BY P.L.146-2008, SECTION 482, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]: Sec. 2. The maximum state distribution for a calendar year for all school corporations for the purposes described in section 3 of this chapter is: (1) three billion eight hundred twelve million five hundred thousand dollars ($3,812,500,000) in 2007; (2) three billion nine hundred sixty million nine hundred thousand dollars ($3,960,900,000) in 2008; and (3) (1) six five billion five eight hundred nine twenty-nine million nine hundred thousand dollars ($6,509,000,000) ($5,829,900,000) in 2009; (2) six billion five hundred forty-eight million nine hundred thousand dollars ($6,548,900,000) in 2010; and (3) six billion five hundred sixty-eight million five hundred thousand dollars ($6,568,500,000) in 2011. SECTION 330. IC 20-43-2-3, AS AMENDED BY P.L.3-2008, SECTION 122, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 3. If the total amount to be distributed: (1) as basic tuition support; (2) for academic honors diploma awards; (3) for primetime distributions; (4) for special education grants; and (5) for career and technical education grants; (6) for restoration grants; and Legislative Bulletin 09-6 Special Session Summary Page 57 (7) for small school grants; for a particular year exceeds the maximum state distribution for a calendar year, the amount to be distributed for state tuition support under this article to each school corporation during each of the last six (6) months of the year shall be proportionately reduced so that the total reductions equal the amount of the excess. SECTION 331. IC 20-43-3-4, AS AMENDED BY P.L.146-2008, SECTION 485, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 4. (a) This subsection applies to calendar year 2009. A school corporation's previous year revenue equals the amount determined under STEP TWO of the following formula: STEP ONE: Determine the sum of the following: (A) The school corporation's basic tuition support for the year that precedes the current year. (B) The school corporation's maximum permissible tuition support levy for calendar year 2008. (C) The school corporation's excise tax revenue for calendar year 2007. STEP TWO: Subtract from the STEP ONE result an amount equal to the reduction in the school corporation's state tuition support under any combination of subsection (b), (c), subsection (c), (d), IC 20-10.1-2-1 (before its repeal), or IC 20-30-2-4. (b) This subsection applies to calendar years 2010 and 2011. A school corporation's previous year revenue equals the amount determined under STEP TWO of the following formula: STEP ONE: Determine the sum of the following: (A) The school corporation's basic tuition support for the year that precedes the current year. (B) For calendar year 2010, the amount of education stabilization funds received by the school corporation in calendar year 2009 under Section 14002(a) of the federal American Recovery and Reinvestment Act of 2009 (ARRA). (C) The amount of the annual decrease in federal aid to impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years. STEP TWO: Subtract from the STEP ONE result an amount equal to the reduction in the school corporation's state tuition support under any combination of subsection (c) or IC 20-30-2-4. (b) (c) A school corporation's previous year revenue must be reduced if: (1) the school corporation's state tuition support for special education or career and technical education is reduced as a result of a complaint being filed with the department after December 31, 1988, because the school program overstated the number of children enrolled in special education programs or career and technical education programs; and (2) the school corporation's previous year revenue has not been reduced under this subsection more than one (1) time because of a given overstatement. The amount of the reduction equals the amount the school corporation would have received in state tuition support for special education and career and technical education because of the overstatement. (c) (d) This section applies only to 2009. A school corporation's previous year revenue must be reduced if an existing elementary or secondary school located in the school corporation converts to a charter school under IC 20-24-11. The amount of the reduction equals the product Legislative Bulletin 09-6 Special Session Summary Page 58 of: (1) the sum of the amounts distributed to the conversion charter school under IC 20-24-73(c) and IC 20-24-7-3(d) (as effective December 31, 2008); multiplied by (2) two (2). SECTION 332. IC 20-43-4-7, AS AMENDED BY P.L.234-2007, SECTION 240, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 7. (a) This subsection does not apply to a charter school. When calculating adjusted ADM for 2008 2010 distributions, this subsection, as effective after December 31, 2007, 2009, shall be used to calculate the adjusted ADM for the previous year rather than the calculation used to calculate adjusted ADM for 2007 2009 distributions. For purposes of this article, a school corporation's "adjusted ADM" for the current year is the result determined under the following formula: STEP ONE: Determine the sum of the following: (A) The school corporation's ADM for the year preceding the current year by four (4) years multiplied by two-tenths (0.2). (B) The school corporation's ADM for the year preceding the current year by three (3) years multiplied by two-tenths (0.2). (C) (A) The school corporation's ADM for the year preceding the current year by two (2) years multiplied divided by two-tenths (0.2). three (3). (D) (B) The school corporation's ADM for the year preceding the current year by one (1) year multiplied divided by two-tenths (0.2). three (3). (E) (C) The school corporation's ADM for the current year multiplied divided by twotenths (0.2). three (3). STEP TWO: Determine the school corporation's ADM for the current year. STEP THREE: Determine the greater of the following: (A) The STEP ONE result. (B) The STEP TWO result. (b) A charter school's adjusted ADM for purposes of this article is the charter school's current ADM. SECTION 333. IC 20-43-5-3, AS AMENDED BY P.L.3-2008, SECTION 125, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 3. A school corporation's complexity index is determined under the following formula: STEP ONE: Determine the greater of zero (0) or the result of the following: (1) Determine the percentage of the school corporation's students who were eligible for free or reduced price lunches in the school year ending in the later of: (A) 2007 for purposes of determining the complexity index in 2009, and 2009 for the purposes of determining the complexity index in 2010 and 2011; or (B) the first year of operation of the school corporation. (2) Determine the quotient of: (A) in 2008: (i) two thousand two hundred fifty dollars ($2,250); divided by (ii) four thousand seven hundred ninety dollars ($4,790); and (B) (A) in 2009: (i) two thousand four hundred dollars ($2,400); divided by (ii) four thousand eight hundred twenty-five dollars ($4,825); (B) in 2010: (i) two thousand two hundred sixty-three dollars ($2,263); divided by Legislative Bulletin 09-6 Special Session Summary Page 59 (ii) four thousand five hundred fifty dollars ($4,550); and (C) in 2011: (i) two thousand two hundred forty-one dollars ($2,241); divided by (ii) four thousand five hundred five dollars ($4,505). (3) Determine the product of: (A) the subdivision (1) amount; multiplied by (B) the subdivision (2) amount. STEP TWO: Determine the result of one (1) plus the STEP ONE result. STEP THREE: This STEP applies if the STEP TWO result is equal to or greater than at least one and twenty-five hundredths (1.25). Determine the result of the following: (1) Subtract one and twenty-five hundredths (1.25) from the STEP TWO result. (2) Determine the result of: (A) the STEP TWO result; plus (B) the subdivision (1) result. The data to be used in making the calculations under STEP ONE must be the data collected in the annual pupil enrollment count by the department. SECTION 334. IC 20-43-5-4, AS AMENDED BY P.L.234-2007, SECTION 244, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 4. A school corporation's foundation amount for a calendar year is the result determined under STEP TWO of the following formula: STEP ONE: Determine The STEP ONE amount is: (A) in 2008, four thousand seven hundred ninety dollars ($4,790); or (B) (A) in 2009, four thousand eight hundred twenty-five dollars ($4,825); (B) in 2010, four thousand five hundred fifty dollars ($4,550); and (C) in 2011, four thousand five hundred five dollars ($4,505). STEP TWO: Multiply the STEP ONE amount by the school corporation's complexity index. SECTION 335. IC 20-43-5-5, AS ADDED BY P.L.2-2006, SECTION 166, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 5. A school corporation's previous year revenue foundation amount for a calendar year is equal to the result of: (1) the school corporation's previous year revenue; divided by (2) the school corporation's adjusted ADM for the previous year. SECTION 336. IC 20-43-5-6, AS AMENDED BY P.L.234-2007, SECTION 245, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 6. (a) A school corporation's transition to foundation amount for a calendar year is equal to the result determined under STEP THREE of the following formula: STEP ONE: Determine the difference of: (A) the school corporation's foundation amount; minus (B) the school corporation's previous year revenue foundation amount. STEP TWO: Divide the STEP ONE result by: (A) four (4) in 2008; or (B) (A) three (3) in 2009; (B) two (2) in 2010; and (C) one (1) in 2011. STEP THREE: A school corporation's STEP THREE amount is the following: (A) For a charter school located outside Marion County that has previous year revenue that is not greater than zero (0), the charter school's STEP THREE amount is the quotient of: Legislative Bulletin 09-6 Special Session Summary Page 60 (i) the school corporation's transition to foundation revenue for the calendar year where the charter school is located; divided by (ii) the school corporation's current ADM. (B) For a charter school located in Marion County that has previous year revenue that is not greater than zero (0), the charter school's STEP THREE amount is the weighted average of the transition to foundation revenue for the school corporations where the students counted in the current ADM of the charter school have legal settlement, as determined under item (iv) of the following formula: (i) Determine the transition to foundation revenue for each school corporation where a student counted in the current ADM of the charter school has legal settlement. (ii) For each school corporation identified in item (i), divide the item (i) amount by the school corporation's current ADM. (iii) For each school corporation identified in item (i), multiply the item (ii) amount by the number of students counted in the current ADM of the charter school that have legal settlement in the particular school corporation. (iv) Determine the sum of the item (iii) amounts for the charter school. (C) The STEP THREE amount for a school corporation that is not a charter school described in clause (A) or (B) is the following: (i) The school corporation's foundation amount for the calendar year if the STEP ONE amount is at least negative one hundred fifty dollars (-$50) (-$150) and not more than one hundred fifty dollars ($100). ($50). (ii) For 2009, the school corporation's foundation amount for the calendar year, if the foundation amount in 2008 equaled the school corporation's transition to foundation revenue per adjusted ADM in 2008. (iii) (ii) The sum of the school corporation's previous year revenue foundation amount and the greater of the school corporation's STEP TWO amount or one hundred fifty dollars ($100), ($50), if the school corporation's STEP ONE amount is greater than one hundred fifty dollars ($100). ($50). (iv) (iii) The difference determined by subtracting fifty dollars ($50) from amount determined under subsection (b), if the school corporation's STEP ONE amount is less than negative one hundred fifty dollars (-$150). (b) For the purposes of STEP THREE (C)(iii) in subsection (a), determine the result of: (1) the school corporation's previous year revenue foundation amount; if the school corporation's STEP ONE amount is less than negative fifty dollars (-$50). minus (2) the greater of: (A) one hundred fifty dollars ($150); or (B) the result of: (i) the absolute value of the STEP ONE amount; divided by (ii) nine (9) in 2010, and eight (8) in 2011. SECTION 337. IC 20-43-5-7, AS AMENDED BY P.L.3-2008, SECTION 126, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 7. A school corporation's transition to foundation revenue for a calendar year is equal to the sum of the following: (1) The product of: (A) (1) the school corporation's transition to foundation amount for the calendar year; multiplied by (B) (2) the school corporation's: Legislative Bulletin 09-6 Special Session Summary Page 61 (i) (A) current ADM, if the current ADM for the school corporation is less than one hundred (100); and (ii) (B) current adjusted ADM, if item (i) clause (A) does not apply. (2) Either: (A) The result of: (i) one hundred dollars ($100) for calendar year 2008 and one hundred fifty dollars ($150) for calendar year 2009; multiplied by (ii) the school corporation's adjusted ADM; if the school corporation's current ADM is less than three thousand and six hundred (3,600) and the amount determined under subdivision (1) is less than the school corporation's previous year revenue. (B) The result of: (i) one hundred dollars ($100) for calendar year 2008 and one hundred fifty dollars ($150) for calendar year 2009; multiplied by (ii) the school corporation's adjusted ADM; if clause (A) does not apply and the result of the amount under subdivision (1) is less than the result of the school corporation's previous year revenue multiplied by nine hundred sixty-five thousandths (0.965). (C) The school corporation's current adjusted ADM multiplied by the lesser of: (i) one hundred dollars ($100); or (ii) the school corporation's STEP TWO amount under section 6 of this chapter; if clauses (A) and (B) do not apply, the amount under subdivision (1) is less than the school corporation's previous year revenue, and the school corporation's result under STEP ONE of section 6 of this chapter is greater than zero (0). or (D) Zero (0), if clauses (A), (B), and (C) do not apply. (3) This subdivision does not apply to a charter school. Either: (A) three hundred dollars ($300) multiplied by the school corporation's current ADM, if the school corporation's current ADM is less than one thousand seven hundred (1,700) and the school corporation's complexity index is greater than one and two-tenths (1.2); (B) one hundred dollars ($100) multiplied by the school corporation's current ADM, if the school corporation's current ADM is less than one thousand seven hundred (1,700) and the school corporation's complexity index is greater than one and one-tenth (1.1) and not greater than one and two-tenths (1.2); or (C) zero (0), if clauses (A) and (B) do not apply. SECTION 338. IC 20-43-6-1, AS ADDED BY P.L.2-2006, SECTION 166, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 1. Subject to the amount appropriated by the general assembly for state tuition support and IC 20-43-2, the amount that a school corporation is entitled to receive in basic tuition support for a year is the amount determined in section 5 3 of this chapter. SECTION 339. IC 20-43-6-3, AS AMENDED BY P.L.146-2008, SECTION 488, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 3. (a) A school corporation's total regular program basic tuition support for a calendar year is the amount determined under the applicable provision of this section. (b) This subsection applies to a school corporation that has transition to foundation revenue per adjusted ADM for a calendar year that is not equal to the school corporation's foundation amount for the calendar year. The school corporation's total regular program basic tuition Legislative Bulletin 09-6 Special Session Summary Page 62 support for a calendar year is equal to the school corporation's transition to foundation revenue for the calendar year. (c) This subsection applies to a school corporation that has transition to foundation revenue per adjusted ADM for a calendar year that is equal to the school corporation's foundation amount for the calendar year. The school corporation's total regular program basic tuition support for a calendar year is the sum of the following: (1) The school corporation's foundation amount for the calendar year multiplied by the school corporation's adjusted ADM. for the current year. (2) The amount of the annual decrease in federal aid to impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years. (d) This subsection applies to students of a virtual charter school who are participating in the pilot program under IC 20-24-7-13. A virtual charter school's basic tuition support for a year for those students is the amount determined under IC 20-24-7-13. SECTION 340. IC 20-43-7-6, AS AMENDED BY P.L.234-2007, SECTION 252, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 6. A school corporation's special education grant for a calendar year is equal to the sum of the following: (1) The nonduplicated count of pupils in programs for severe disabilities multiplied by (A) in 2008, eight thousand three hundred dollars ($8,300); and (B) in 2009, eight thousand three hundred fifty dollars ($8,350). (2) The nonduplicated count of pupils in programs of mild and moderate disabilities multiplied by (A) in 2008, two thousand two hundred fifty dollars ($2,250); and (B) in 2009, two thousand two hundred sixty-five dollars ($2,265). (3) The duplicated count of pupils in programs for communication disorders multiplied by (A) in 2008, five hundred thirty-one dollars ($531); and (B) in 2009, five hundred thirty-three dollars ($533). (4) The cumulative count of pupils in homebound programs multiplied by (A) in 2008, five hundred thirty-one dollars ($531); and (B) in 2009, five hundred thirty-three dollars ($533). (5) The nonduplicated count of pupils in special preschool education programs multiplied by two thousand seven hundred fifty dollars ($2,750). SECTION 341. IC 20-43-9-4, AS AMENDED BY P.L.234-2007, SECTION 253, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 4. For purposes of computation under this chapter, the following shall be used: (1) The staff cost amount for a school corporation (A) in 2008, is seventy-two thousand dollars ($72,000); and (B) in 2009, is seventy-four thousand five hundred dollars ($74,500). (2) The guaranteed primetime amount for a school corporation is the primetime allocation, before any penalty is assessed under this chapter, that the school corporation would have received under this chapter for the 1999 calendar year or the first year of participation in the program, whichever is later. (3) The following apply to determine whether amounts received under this chapter have been devoted to reducing class size in kindergarten through grade 3 as required by section 2 of this chapter: (A) Except as permitted under section 8 of this chapter, only a licensed teacher who is an Legislative Bulletin 09-6 Special Session Summary Page 63 actual classroom teacher in a regular instructional program is counted as a teacher. (B) If a school corporation is granted approval under section 8 of this chapter, the school corporation may include as one-third (1/3) of a teacher each classroom instructional aide who meets qualifications and performs duties prescribed by the state board. SECTION 342. IC 20-43-9-6, AS AMENDED BY P.L.234-2007, SECTION 254, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 6. A school corporation's primetime distribution for a calendar year under this chapter is the amount determined by the following formula: STEP ONE: Determine the applicable target pupil/teacher ratio for the school corporation as follows: (A) If the school corporation's complexity index is less than one and one-tenth (1.1), the school corporation's target pupil/teacher ratio is eighteen to one (18:1). (B) If the school corporation's complexity index is at least one and one-tenth (1.1) but less than one and two-tenths (1.2), the school corporation's target pupil/teacher ratio is fifteen (15) plus the result determined in item (iii) to one (1): (i) Determine the result of one and two-tenths (1.2) minus the school corporation's complexity index. (ii) Determine the item (i) result divided by one-tenth (0.1). (iii) Determine the item (ii) result multiplied by three (3). (C) If the school corporation's complexity index is at least one and two-tenths (1.2), the school corporation's target pupil/teacher ratio is fifteen to one (15:1). STEP TWO: Determine the result of: (A) the ADM of the school corporation in kindergarten through grade 3 for the current school year; divided by (B) the school corporation's applicable target pupil/teacher ratio, as determined in STEP ONE. STEP THREE: Determine the result of: (A) the total regular program basic tuition support for the year multiplied by seventy-five hundredths (0.75); divided by (B) the school corporation's total ADM. STEP FOUR: Determine the result of: (A) the STEP THREE result; multiplied by (B) the ADM of the school corporation in kindergarten through grade 3 for the current school year. STEP FIVE: Determine the result of: (A) the STEP FOUR result; divided by (B) the staff cost amount. STEP SIX: Determine the greater of zero (0) or the result of: (A) the STEP TWO amount; minus (B) the STEP FIVE amount. STEP SEVEN: Determine the result of: (A) the STEP SIX amount; multiplied by (B) the staff cost amount. STEP EIGHT: Determine the greater of the STEP SEVEN amount or the school corporation's guaranteed primetime amount. STEP NINE: A school corporation's amount under this STEP is the following: Legislative Bulletin 09-6 Special Session Summary Page 64 (A) If the amount the school corporation received under this chapter in the previous calendar year is greater than zero (0), the amount under this STEP is the lesser of: (i) the STEP EIGHT amount; or (ii) the amount the school corporation received under this chapter for the previous calendar year multiplied by one hundred seven and one-half percent (107.5%). (B) If the amount the school corporation received under this chapter in the previous calendar year is not greater than zero (0), the amount under this STEP is the STEP EIGHT amount. SECTION 343. IC 20-43-12 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Chapter 12. Restoration Grants Sec. 1. A school corporation is entitled to a restoration grant. Sec. 2. The amount of the restoration grant to which a school corporation is entitled in a year is equal to the result determined under the following formula: STEP ONE: Determine the school corporation's basic tuition support for the current year. STEP TWO: Determine the amount of the basic tuition support to which the school corporation would have been entitled for the 2009 year if the school corporation's basic tuition support had been computed using the formula for computing basic tuition support for 2009 as that formula existed after the amendments made by P.L.146-2008. STEP THREE: Determine the sum of: (A) the STEP TWO amount divided by the school corporation's 2009 ADM; plus (B) twenty-five dollars ($25) for 2010 and seventy-five dollars ($75) for 2011. STEP FOUR: Determine the result of: (A) the school corporation's STEP THREE amount; multiplied by (B) the school corporation's ADM for the current year. STEP FIVE: Determine the sum of: (A) the STEP TWO amount divided by the school corporation's 2009 ADM; minus (B) twenty-five dollars ($25) for 2010 and seventy-five dollars ($75) for 2011. STEP SIX: Determine the result of: (A) the school corporation's STEP FIVE amount; multiplied by (B) the school corporation's ADM for the current year. STEP SEVEN: Determine the lesser of: (A) the STEP FOUR amount; or (B) the STEP TWO amount. STEP EIGHT: Determine the greater of: (A) the STEP SEVEN amount; or (B) the STEP SIX amount. STEP NINE: Determine the greater of zero (0) or the result of: (A) the STEP EIGHT amount; minus (B) the STEP ONE amount. STEP TEN: Determine the sum of the current year basic tuition support plus the STEP NINE amount. STEP ELEVEN: Determine the result of the following: (A) For 2010, divide the STEP TEN amount by the STEP TWO amount. (B) For 2011, divide: Legislative Bulletin 09-6 Special Session Summary Page 65 (i) the STEP TEN amount; by (ii) the sum of the prior year basic tuition support plus the prior year STEP NINE amount. STEP TWELVE: Determine the greater of: (A) zero (0); or (B) the result of: (i) ninety-seven hundredths (0.97); minus (ii) the STEP ELEVEN amount. STEP THIRTEEN: Determine the lesser of: (A) two hundred twenty dollars ($220) for 2010 and three hundred fifty dollars ($350) for 2011; or (B) the result of: (i) the STEP TWELVE amount multiplied by nine thousand five hundred (9,500), in 2010; and (ii) the STEP TWELVE amount multiplied by twelve thousand (12,000), in 2011. STEP FOURTEEN: Determine the product of: (A) the STEP THIRTEEN amount; multiplied by (B) the school corporation's current ADM. STEP FIFTEEN: Determine the sum of: (A) the STEP NINE amount; plus (B) the STEP FOURTEEN amount. SECTION 344. IC 20-43-12.2 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Chapter 12.2. Small School Grants Sec. 1. A school corporation is entitled to a small school grant as provided in this chapter. This chapter does not apply to a charter school. Sec. 2. The amount of the small school grant to which a school corporation is entitled in a year is equal to: (1) the lesser of: (A) one hundred ninety-two dollars ($192); or (B) one dollar ($1) multiplied by the result of: (i) one thousand seven hundred (1,700); minus (ii) the school corporation's current ADM; multiplied by the school corporation's current ADM, if the school corporation's current ADM is less than one thousand seven hundred (1,700) and the school corporation's complexity index is greater than one and two-tenths (1.2); (2) the lesser of: (A) ninety-one dollars ($91); or (B) one dollar ($1) multiplied by the result of: (i) one thousand seven hundred (1,700); minus (ii) the school corporation's current ADM; multiplied by the school corporation's current ADM, if the school corporation's current ADM is less than one thousand seven hundred (1,700) and the school corporation's complexity index is greater than one and one-tenth (1.1) and not greater than one and two-tenths (1.2); and (3) zero (0), if subdivisions (1) and (2) do not apply. Legislative Bulletin 09-6 Special Session Summary Page 66 xxxxxxxxxxxxxxxxxxxx CPF Use for Utilities and Property Insurance SOURCE: IC 20-40-8-19. --> SECTION 322. IC 20-40-8-19, AS AMENDED BY P.L.1462008, SECTION 528, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 19. Money in the fund may be used to pay for up to one hundred percent (100%) of the following costs of a school corporation: (1) Utility services. (2) Property or casualty insurance. (3) Both utility services and property or casualty insurance. A school corporation's expenditures under this section may not exceed in 2008 2010 and in 2009 2011 three and five-tenths percent (3.5%) of the school corporation's 2005 calendar year distribution. xxxxxxxxxxxxxxxxxxxxx South Bend School Corporation – Tax Collection Hearing SECTION 349. IC 20-46-5-6.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6.1. (a) This section does not apply to a school corporation located in South Bend, unless a resolution adopted under IC 6-1.1-17-5.6(d) by the governing body of the school corporation is in effect. (b) Before a governing body may collect property taxes for the fund in a particular calendar year, the governing body must, after January 1 and not later than September 20 of the immediately preceding year: (1) conduct a public hearing on; and (2) pass a resolution to adopt; a plan. (c) This section expires January 1, 2011. SECTION 350. IC 20-46-5-7, AS AMENDED BY P.L.146-2008, SECTION 505, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) Except as provided in subsection (b), this section applies only to a school corporation located in South Bend. (b) After December 31, 2009, 2010, this section applies to all school corporations. (c) This subsection expires January 1, 2010. 2011. This section does not apply to the school corporation if a resolution adopted under IC 6-1.1-17-5.6(d) by the governing body of the school corporation is in effect. (d) Before the governing body of the school corporation may collect property taxes for the fund in a particular calendar year, the governing body must, after January 1 and on or before February 1 of the immediately preceding year: Legislative Bulletin 09-6 Special Session Summary Page 67 (1) conduct a public hearing on; and (2) pass a resolution to adopt; a plan. xxxxxxxxxxxxxxxxxxx Charter Schools No Payments for Principal and Interest/Common School Fund SECTION 363. IC 20-49-7-21 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 21. (a) A charter school, including a conversion charter school, that has received an advance for operational costs from the common school fund under this chapter does not have to make principal or interest payments during the state fiscal years beginning: (1) July 1, 2009; and (2) July 1, 2010; notwithstanding contrary terms in the charter school and state board advance agreement. (b) The repayment term of the advance shall be extended by two (2) years to provide for the waiver described in subsection (a) even though it may make the repayment term for the advance longer than twenty (20) years. xxxxxxxxxxxxxxxxxxx School Scholarship Program SECTION 205. IC 6-3.1-30.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Chapter 30.5. School Scholarship Tax Credit Sec. 1. As used in this chapter, "credit" refers to a credit granted under this chapter. Sec. 2. As used in this chapter, "pass through entity" has the meaning set forth in IC 6-31-35. Sec. 3. As used in this chapter, "scholarship granting organization" refers to an organization that: (1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; and (2) conducts a school scholarship program. Sec. 4. As used in this chapter, "school scholarship program" refers to a scholarship program certified by the department of education under IC 20-51. Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under: (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); Legislative Bulletin 09-6 Special Session Summary Page 68 (2) IC 6-5.5 (the financial institutions tax); and (3) IC 27-1-18-2 (the insurance premiums tax); as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter. Sec. 6. As used in this chapter, "taxpayer" means an individual or entity that has any state tax liability. Sec. 7. A taxpayer that makes a contribution to a scholarship granting organization for use by the scholarship granting organization in a school scholarship program is entitled to a credit against the taxpayer's state tax liability in the taxable year in which the taxpayer makes the contribution. Sec. 8. The amount of a taxpayer's credit is equal to fifty percent (50%) of the amount of the contribution made to the scholarship granting organization for a school scholarship program. Sec. 9. A taxpayer is not entitled to a carryover, carryback, or refund of an unused credit. Sec. 10. If a pass through entity is entitled to a credit under section 7 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a tax credit equal to: (1) the tax credit determined for the pass through entity for the taxable year; multiplied by (2) the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled. Sec. 11. To apply a credit against the taxpayer's state tax liability, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department the information that the department determines is necessary for the department to determine whether the taxpayer is eligible for the credit. Sec. 12. A contribution shall be treated as having been made for use in a school scholarship program if: (1) the contribution is made directly to a scholarship granting organization; and (2) either: (A) not later than the date of the contribution, the taxpayer designates in writing to the scholarship granting organization that the contribution is to be used only for a school scholarship program; or (B) the scholarship granting organization provides the taxpayer with written confirmation that the contribution will be dedicated solely for use in a school scholarship program. Sec. 13. The total amount of tax credits awarded under this chapter may not exceed two million five hundred thousand dollars ($2,500,000) in any state fiscal year. Sec. 14. The department, on an Internet web site used by the department to provide information to the public, shall provide the following information: (1) The application for the credit provided in this chapter. (2) A timeline for receiving the credit provided in this chapter. (3) The total amount of credits awarded under this chapter during the current state fiscal year. Legislative Bulletin 09-6 Special Session Summary Page 69 Sec. 15. The department shall adopt rules under IC 4-22-2 to implement this chapter…………… SECTION 364. IC 20-51 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: ARTICLE 51. SCHOOL SCHOLARSHIPS Chapter 1. Definitions Sec. 1. The definitions in this chapter apply throughout this article. Sec. 2. "Agreement" refers to an agreement between the department and an applicant that applies for certification of a school scholarship program. Sec. 3. "Contribution" refers to a contribution to a scholarship granting organization for use in a school scholarship program. Sec. 4. (a) "Cost of education" means the tuition and fees that would otherwise be charged by a participating school to: (1) an eligible student; or (2) a parent of an eligible student. (b) In the case of an eligible pupil who attends a public school, the term includes any transfer tuition charged to the eligible student or a parent of the eligible student. Sec. 5. "Eligible student" refers to an individual who: (1) has legal settlement in Indiana; (2) is at least five (5) years of age and less than twenty-two (22) years of age on the date in the school year specified in IC 20-33-2-7; (3) either has been or is currently enrolled in a participating school; (4) either: (A) is a member of a household with an annual income of not more than two hundred percent (200%) of the amount required for the individual to qualify for the federal free or reduced price lunch program; or (B) received a scholarship under this article in the immediately preceding school year or the immediately preceding term of the current school year and qualified under clause (A) in the first year that the individual received a scholarship under this article; and (5) meets at least one (1) of the following conditions: (A) The individual is enrolling in kindergarten. (B) The individual was enrolled in a public school during the school year preceding the first school year for which a scholarship granting organization provides a scholarship to the individual. (C) The individual received a scholarship in the previous year from a nonprofit scholarship granting organization that qualifies for certification as a school scholarship program. (D) The individual received a school scholarship for the previous school year. Sec. 6. (a) "Participating school" refers to a public or nonpublic school that: (1) an eligible student is required to pay tuition or transfer tuition to attend; (2) voluntarily agrees to enroll an eligible student; (3) is accredited by either the state board or a national or regional accreditation agency that is recognized by the state board; and (4) administers the tests under the Indiana statewide testing for educational progress (ISTEP) program or administers another nationally recognized and norm-referenced Legislative Bulletin 09-6 Special Session Summary Page 70 assessment of the school's students. (b) The term does not include a public school in a school corporation where the eligible student has legal settlement under IC 20-26-11. Sec. 7. "Scholarship granting organization" refers to an organization that: (1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; and (2) is organized at least in part to grant school scholarships. Sec. 8. "School scholarship" refers to a grant to pay only the cost of education for an eligible student as determined for the school year (as defined in IC 20-18-2-17) for which the scholarship will be granted. Chapter 2. Exchange of Information; Rules Sec. 1. The department shall maintain a publicly available list of the school scholarship programs certified by the department. The list must contain names, addresses, and any other information that the department determines is necessary for the public to determine which scholarship granting organizations conduct school scholarship programs. A current list must be posted on an Internet web site used by the department to provide information to the public. Chapter 3. Scholarship Granting Organizations; Certification; Administration of Contributions Sec. 1. (a) A program qualifies for certification as a school scholarship program if: (1) the program: (A) is administered by a scholarship granting organization; and (B) has the primary purpose of providing school scholarships to eligible students; and (2) the scholarship granting organization administering the program: (A) applies to the department on the form and in the manner prescribed by the department; and (B) enters into an agreement with the department to comply with this article. (b) A program may not be certified as a school scholarship program if the program: (1) limits a recipient of a school scholarship to attending specific participating schools; or (2) limits the ability of a recipient of a school scholarship to change attendance from one (1) participating school to another participating school. Sec. 2. The department shall certify all programs that meet the qualifications under section 1 of this chapter as school scholarship programs. Sec. 3. An agreement entered into under section 1 of this chapter between the department and a scholarship granting organization must require the scholarship granting organization to do the following: (1) Provide a receipt to taxpayers for contributions made to the scholarship granting organization that will be used in a school scholarship program. The department of state revenue shall prescribe a standardized form for the receipt issued under this subdivision. The receipt must indicate the value of the contribution and part of the contribution being designated for use in a school scholarship program. (2) Distribute at least ninety percent (90%) of the total amount of contributions as school scholarships to eligible students. (3) Distribute one hundred percent (100%) of any income earned on contributions as Legislative Bulletin 09-6 Special Session Summary Page 71 school scholarships to eligible students. (4) Conduct criminal background checks on all the scholarship granting organization's employees and board members and exclude from employment or governance any individual who might reasonably pose a risk to the appropriate use of contributed funds. (5) Make the reports required by this chapter. Sec. 4. An agreement entered into under section 1 of this chapter may not prohibit a scholarship granting organization from receiving contributions other than contributions described in section 3(1) of this chapter. Sec. 5. An agreement entered into under section 1 of this chapter must prohibit a scholarship granting organization from distributing school scholarships for use by an eligible student to: (1) enroll in a school that has: (A) paid staff or board members; or (B) relatives of paid staff or board members; in common with the scholarship granting support organization; (2) enroll in a school that the scholarship granting organization knows does not qualify as a participating school; or (3) pay for the cost of education for a public school where the eligible student is entitled to enroll without the payment of tuition. Sec. 6. (a) A scholarship granting organization certified under this chapter must publicly report to the department by August 1 of each year the following information regarding the organization's scholarships awarded in the previous school year: (1) The name and address of the scholarship granting organization. (2) The total number and total dollar amount of contributions received during the previous school year. (3) The: (A) total number and total dollar amount of scholarships awarded during the previous school year; and (B) total number and total dollar amount of school scholarships awarded during the previous school year. The report must be certified under penalties of perjury by the chief executive officer of the scholarship granting organization. (b) A scholarship granting organization certified under this chapter shall contract with an independent certified public accountant for an annual financial audit of the scholarship granting organization. The scholarship granting organization must provide a copy of the annual financial audit to the department and must make the annual financial audit available to a member of the public upon request. Sec. 7. The department shall prescribe a standardized form for scholarship granting organizations to report information required under this chapter. Sec. 8. The department may, in a proceeding under IC 4-21.5, suspend or terminate the certification of an organization as a scholarship granting organization if the department establishes that the scholarship granting organization has intentionally and substantially failed to comply with the requirements of this article or an agreement entered into under this article. Sec. 9. If the department suspends or terminates the certification of an organization as a Legislative Bulletin 09-6 Special Session Summary Page 72 scholarship granting organization, the department shall notify affected eligible students and their parents of the decision as quickly as possible. An eligible student affected by a suspension or termination of a scholarship granting organization's certification remains an eligible student under this article until the end of the school year after the school year in which the scholarship granting organization's certification is suspended or terminated, regardless of whether the scholarship student currently meets the definition of an eligible student. Sec. 10. The department may conduct either a financial review or an audit of a scholarship granting organization certified under this chapter if the department of state revenue has evidence of fraud. Sec. 11. The department shall adopt rules under IC 4-22-2 to implement this article. xxxxxxxxxxxxxxxxxxx Gaming Dollars for School Construction SECTION 403. IC 36-4-8-15.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15.5. (a) This section applies to: (1) a city or county in which a riverboat (as defined in IC 4-33-2-17) is docked or located or gambling games (as defined in IC 4-35-2-5) are located; and (2) a school corporation that is located in any part in a county described in subdivision (1) or in a county in which a city described in subdivision (1) is located. (b) A city or county may do any of the following: (1) Enter into one (1) or more agreements or leases with the school corporation or another public or private entity to provide for the construction or renovation of a school building that will be used by the school corporation. The agreements and leases may provide for the financing of the construction or renovation of the school building. (2) A school building constructed or renovated as provided in subdivision (1) may be donated, sold, or leased to the school corporation under the conditions determined by the school corporation and the city or county. (3) The city or county may use any revenues (including any gaming revenues) to pay for the construction or renovation of the school building or to finance the construction or renovation of the school building. xxxxxxxxxxxxxxxxxxx Special Education Pre-school Fund Balance to General Fund SECTION 483. [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]: (a) The department of education shall, on the schedule determined by the department of education, adjust the special education grant distributed to a school corporation under IC 20-43-7-6, as amended by this act, in 2009 to reflect any special education preschool grant distributions made to Legislative Bulletin 09-6 Special Session Summary Page 73 the school corporation under IC 20-20-34-3 before the effective date of this SECTION. The amount of any reduction in a special education grant under this SECTION shall not be considered for purposes of applying IC 20-43-2-3. The unencumbered balance of a school corporation's special education preschool fund shall be transferred to the school corporation's general fund for purposes of the school corporation's general fund as soon as practicable after the effective date of this SECTION. (b) This SECTION expires January 1, 2010. xxxxxxxxxxxxxxxxxxxx DOE and Department of Revenue Develop Rules for Tax Scholarship Credit SECTION 487. [EFFECTIVE UPON PASSAGE] (a) The department of education and the state department of revenue may adopt temporary rules in the manner provided in IC 422-2-37.1 for the adoption of emergency rules to implement IC 20-51, as added by this act. A temporary rule adopted under this SECTION expires on the earliest of the following: (1) The date another temporary rule is adopted under this SECTION that supersedes or repeals the previously adopted temporary rule. (2) The date that a permanent rule adopted under IC 4-22-2 supersedes or repeals a temporary rule adopted under this SECTION. (3) The date specified in the temporary rule. (4) June 30, 2011. (b) This SECTION expires July 1, 2011. xxxxxxxxxxxxxxxxxx Budget Agency Review of State Health Insurance Plan for Schools SECTION 494. [EFFECTIVE JULY 1, 2009] (a) The budget agency shall review the costs of providing employee health, vision, and dental insurance for state employees and employees of school corporations and public universities. In conducting the review the budget agency shall collect data on the cost of existing plans offered by the state, school corporations, and public universities. School corporations and public universities shall provide the data needed to complete the review as requested by the budget agency. The budget agency shall review the following: (1) Comparative costs of providing health insurance among the employer groups. (2) Comparative benefits among the employee groups. (3) Differences in amounts paid by employees and amounts paid by the employers. (4) Opportunities to modernize health plans and take advantage of employee tax incentives in the delivery of health insurance plans. (5) Opportunities for efficiencies and cost savings for employers and employees by Legislative Bulletin 09-6 Special Session Summary Page 74 creating additional or larger employee pools. (6) Any impact on the competitive market for health insurance. (7) Other factors the budget agency considers relevant to the review. (b) The budget agency may use a part of the departmental and institutional contingency fund to hire professionals to assist in gathering and examining data. The budget agency shall report findings of the review to the budget committee before July 1, 2010. (c) This SECTION expires January 1, 2011. xxxxxxxxxxxxxxxxxx Brown County No Payments on Principal and Interest on Rainy Day Fund Loans SECTION 498. [EFFECTIVE UPON PASSAGE] (a) Notwithstanding any other law or agreement, Brown County School Corporation is not required to make principal or interest payments during the state fiscal years beginning: (1) July 1, 2009; and (2) July 1, 2010; on any loan received by the school corporation from the counter-cyclical revenue and economic stabilization fund (rainy day fund). (b) The repayment term of the loan shall be extended as necessary to take into account the waiver described in subsection (a). (c) This SECTION expires January 1, 2012. xxxxxxxxxxxxxxxx School Fund Formula Study SECTION 512. [EFFECTIVE UPON PASSAGE] (a) The legislative council shall establish a two (2) year study committee to study issues related to the school funding formula. (b) The study committee shall operate under the rules of the legislative council. The study committee shall before November 1, 2010, submit a report of its findings and any recommendations to the legislative council. (c) This SECTION expires January 1, 2011. xxxxxxxxxxxxxxxx Legislative Bulletin 09-6 Special Session Summary Page 75 Revises Employee Evaluation Language (Section 320) SECTION 514. [EFFECTIVE JULY 1, 2009] (a) Notwithstanding SECTION 320 of this act, IC 20-28-11-3(6) and the sentence following IC 20-28-11-3(6) as included in SECTION 320 of this act are replaced with the following language: "(6) if federal rules, regulations, or directives require the use of collective program results of tests to evaluate educators in order to qualify for those federal funds, collective program results of tests used by any school corporation that would receive federal funds may be used as a factor, but not the sole factor, to evaluate educators. If collective testing results are used as a factor in evaluations by a school corporation, they must be applied to all educators in that school corporation. However, Except as provided in subdivision (6), the plan may not provide for an evaluation that is based in whole or in part on the ISTEP program test scores of the students in the school corporation.". (b) The publisher of the Indiana Code shall publish IC 20-28-11-3 as amended by this SECTION. xxxxxxxxxxxxxxxxx Revises State Health Insurance Plan Language (Section 67) SECTION 515. [EFFECTIVE JULY 1, 2009] (a) Notwithstanding SECTION 67 of this act, IC 5-10-8-6.7(g) and IC 5-10-8-6.7(h) are deleted and do not take effect. (b) The publisher of the Indiana Code shall publish IC 5-10-8-6.7 as amended by this SECTION.