HB 2102-1_ Filed 04/04/2001, 16:43
Adopted 4/5/2001

COMMITTEE REPORT




MR. PRESIDENT:

    The Senate Committee on Education, to which was referred House Bill No. 2102, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

    Delete the title and insert the following:
    A BILL FOR AN ACT to amend the Indiana code concerning education and to make an appropriation.

SOURCE: Page 1, line 7; (01)AM210207.1. -->     Page 1, between lines 7 and 8, begin a new paragraph and insert:
    " Sec. 2. "At-risk index" has the meaning set forth in IC 21-3-1.8-1.1.".
    Page 1, line 8, delete "2." and insert " 3.".
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    Page 2, line 9, delete "9." and insert " 8.".
    Page 2, line 11, delete "10." and insert " 9.".
    Page 2, line 11, delete "refers to a nonprofit" and insert " means a".
    Page 2, line 11, after "or" insert " an".
    Page 2, line 13, delete "11." and insert " 10.".
    Page 2, line 13, delete "IC 20-8.1-1-3." and insert " IC 20-1-1.8-8.".
    Page 2, line 14, delete "12." and insert " 11.".
    Page 2, line 16, delete "13." and insert " 12.".
    Page 2, delete lines 18 through 19.
    Page 2, line 20, delete "15." and insert " 13.".
    Page 2, line 22, delete "16." and insert " 14.".
    Page 2, line 24, delete "17." and insert " 15.".
    Page 2, line 24, after "means" insert " one (1) of".
    Page 2, delete lines 26 through 27, begin a new line block indented and insert:
        " (2) A state educational institution (as defined in IC 20-12-0.5-1 ).
        (3) The executive (as defined in IC 36-1-2-5 ) of a consolidated city.
        (4) The executive (as defined in IC 36-1-2-5 ) of a municipality having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000).
".
    Page 2, line 28, delete "18." and insert " 16.".
    Page 3, line 16, delete "grant a charter only to an" and insert " not grant a charter to a for profit".
    Page 3, line 16, delete "that" and insert " .".
    Page 3, delete lines 17 through 34.
    Page 3, line 35, delete "may" and insert " shall".
    Page 4, line 18, delete "policies" and insert " policy".
    Page 4, delete lines 39 through 42, begin a new paragraph and insert:
    " Sec. 4. This section applies only to a sponsor that is the executive of a consolidated city or a municipality having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000). Before issuing a charter, the sponsor must receive the approval of a majority of the members of the legislative body (as defined in IC 36-1-2-9 ) of the consolidated city or municipality for the establishment of a charter school. The sponsor may issue charters for charter schools in any school corporation that is located within the consolidated city or municipality.".
    Page 5, delete lines 1 through 11.
    Page 5, line 15, delete "age" and insert " ages".
    Page 5, between lines 26 and 27, begin a new paragraph and insert:
    " Sec. 8. A sponsor must notify an organizer who submits a proposal under section 3 of this chapter of:
        (1) the acceptance of the proposal; or
        (2) the rejection of the proposal;
not later than sixty (60) days after the organizer submits the proposal.
".
    Page 5, line 27, delete "8. (a) The" and insert " 9. (a) A".
    Page 5, line 32, delete "sponsor" and insert " governing body".
    Page 5, line 33, delete "sponsor" and insert " governing body".
    Page 5, line 39, delete "9." and insert " 10.".
    Page 5, line 39, after "the" insert " organizer may:
        (1) amend the charter school proposal and resubmit the proposal to the same sponsor; or
        (2) submit a charter school proposal to another sponsor.
    Sec. 11. A school that has qualified for a strategic and continuous school improvement and achievement plan under IC 20-1-1-6.3 may revise its qualification plan for submission under this chapter as a charter school proposal.
".
    Page 5, delete lines 40 through 41.
    Page 6, line 9, delete "governing" and insert " sponsor.".
    Page 6, delete line 10.
    Page 6, line 30, delete "sponsor." and insert " organizer.".
    Page 7, line 15, delete ":" and insert " Indiana.".
    Page 7, delete lines 16 through 20.
    Page 7, line 25, delete "(b) and (c)," and insert " (b), (c), and (d),".
    Page 7, line 33, delete "being admitted." and insert " admission.".
    Page 7, delete lines 41 through 42, begin a new paragraph and insert:
    " (d) This subsection applies to an existing school that converts to a charter school under IC 20-5.5-11. During the school year in which the existing school converts to a charter school, the charter school may limit admissions to:
        (1) those students who were enrolled in the charter school on the date of the conversion; and
        (2) siblings of students described in subdivision (1).
".
    Page 8, delete lines 1 through 38.
    Page 8, delete lines 40 through 42, begin a new paragraph and insert:
    " Sec. 1. Individuals who work at a charter school are employees of the charter school or of an entity with which the charter school has contracted to provide services, including instructional services.
    Sec. 2. Individuals must choose to be teachers at a charter school voluntarily, and a charter school shall voluntarily choose such individuals to be its teachers.
    Sec. 3. Employees of a charter school may organize and bargain collectively under IC 20-7.5.
    Sec. 4. (a) An individual who teaches in a charter school must either:
        (1) hold a license to teach in a public school in Indiana under IC 20-6.1-3 ; or
        (2) be in the process of obtaining a license to teach in a public school in Indiana under the transition to teaching program set forth in IC 20-6.1-3-11.
    (b) An individual described in subsection (a)(2) must complete the transition to teaching program not later than three (3) years after beginning to teach at a charter school.
    (c) An individual who provides a service to students in a charter school:
        (1) that is not teaching; and
        (2) for which a license is required under Indiana law;
must have the appropriate license to provide the service in Indiana.
    Sec. 5. A charter school may employ a substitute teacher or an individual who holds a limited license to teach in the same manner in which a noncharter public school may employ a substitute teacher or an individual who holds a limited license to teach.
    Sec. 6. (a) A charter school shall participate in the following:
        (1) The Indiana state teachers' retirement fund in accordance with IC 21-6.1.
        (2) The public employees' retirement fund in accordance with IC 5-10.3.
    (b) A person who teaches in a charter school is a member of the Indiana state teachers' retirement fund. Service in a charter school is creditable service for purposes of IC 21-6.1.
    (c) A person who:
        (1) is a local school employee of a charter school; and
        (2) is not eligible to participate in the Indiana state teachers' retirement fund;
is a member of the public employees' retirement fund.
    (d) The boards of the Indiana state teachers' retirement fund and the public employees' retirement fund shall implement this section through the organizer of the charter school, subject to and conditioned upon receiving any approvals either board considers appropriate from the Internal Revenue Service and the United States Department of Labor.
    Sec. 7. The decision by a sponsor of whether to grant a charter shall not be subject to restraint by the collective bargaining agreement.
    Sec. 8. As a school corporation grants a charter to a charter school and individuals choose and are chosen by the charter school to teach in the charter school, the school corporation may make

personnel adjustments among its noncharter school teachers that the school corporation believes are necessary or appropriate to match existing resources with existing needs in its noncharter schools. If, as part of such adjustments, the school corporation eliminates a teaching position within the corporation, the legal or contractual provisions, if any, otherwise applicable to the teacher in one (1) of its noncharter schools whose contract with the school corporation is canceled as a result of the elimination of the position within the school corporation, continue to apply to that teacher.
    Sec. 9. (a) The governing body:
        (1) must grant a transfer of not more than five (5) years; and
        (2) may grant a transfer for a period of time in addition to the period required under subdivision (1);
to a teacher of a noncharter school in the school corporation who wishes to teach and has been accepted to teach at a charter school sponsored by the governing body within the school corporation.
    (b) During the term of a transfer under subsection (a):
        (1) the teacher's seniority status under law continues as if the teacher were an employee of a noncharter school in the school corporation; and
        (2) the teacher's years as a charter school employee shall not be considered for purposes of permanent or semipermanent status with the school corporation under IC 20-6.1-4.

    Chapter 7. Fiscal Matters
    Sec. 1. (a) The organizer is the fiscal agent for the charter school.
    (b) The organizer has exclusive control of:
        (1) funds received by the charter school; and
        (2) financial matters of the charter school.
    (c) The organizer shall maintain separate accountings of all funds received and disbursed by the charter school.
    Sec. 2. (a) Not more than thirty (30) days before an organizer begins charter school operations, the department shall make a loan from the common school fund to the organizer in an amount equal to the operating costs of the charter school for the initial six (6) months of the school year in which the charter school will begin operations, as determined by the budget and financial plans submitted to the sponsor. The amount distributed under this subsection shall be:
        (1) treated as the working capital of the organizer; and
        (2) repaid to the department in equal installments, without interest, beginning six (6) months after the charter school

begins operations and ending:
            (A) three (3) years after the charter is granted;
            (B) on the date set by the department; or
            (C) when the charter is revoked;
        whichever is the latest.
An installment payment to the department may be deducted from distributions made by the department to the charter school under subsection (d).
    (b) Not later than seven (7) days before the date established by the department for reporting student data to the department, the organizer shall submit to a governing body relevant information concerning students enrolled in the charter school who have legal settlement in the governing body's school corporation. The governing body shall:
        (1) submit the information received under this subsection to the department; and
        (2) indicate whether the charter school is entitled to receive additional funding under subsection (d) for any students enrolled in the charter school.
    (c) This subsection does not apply to revenues and distributions that, under a law or an agreement with the entity providing funding, must be deposited in any of the following funds:
        (1) Capital projects fund.
        (2) Debt service fund.
A governing body shall distribute to a charter school a distributive share of tax revenues received by the sponsor for noncapital expenditures. The schedule under which distributions are made under this subsection shall be established in the charter.
    (d) For money received by a governing body on the basis of a formula that uses a student count, including but not limited to:
        (1) average daily attendance;
        (2) average daily membership;
        (3) average daily membership as adjusted by an at-risk index or other factors;
        (4) additional pupil count;
        (5) eligible pupils;
        (6) number of special education preschool children; or
        (7) any other state funding that a student may be qualified to receive;
the department shall determine the distributive share of a charter school by calculating the amount of funding that would be available under the formula if the student count of the charter

school rather than the total student count of the school corporations in which the students have legal settlement were used.
    (e) This subsection does not apply to money received by a governing body to facilitate the governing body's compliance with a desegregation order issued by a court. For money:
        (1) that is received by a governing body for participation in a program or delivery of services; and
        (2) that is not reimbursed on the basis of a student count;
the department shall reimburse the charter school for programs or services provided using the program or service reimbursement rate applicable to the program or services.
    (f) The organizer shall provide a governing body with the necessary information for the governing body to report to the department to make distributions under this section. The department may adopt guidelines for the implementation of this section in order to assure equivalent funding for students of charter schools and school corporations. If a charter school is organized after the date set for the determination of a student count used to make a distribution, the student count of the charter school shall be determined under guidelines established by the department.
    Sec. 3. (a) Services that a school corporation provides to a charter school, including transportation, may be provided at not more than one hundred three percent (103%) of the actual cost of the services. However, when a student who attends a charter school resides along the regular route of a school bus, the governing body shall provide transportation for the student on the school bus:
        (1) from the student's home or some point on the regular route nearest or most easily accessible to the student's home; and
        (2) to and from the charter school, or to and from the point on the regular route that is nearest or most easily accessible to the charter school.
    (b) This subsection applies to a sponsor that is a state educational institution described in IC 20-5.5-1-15 (2). A state educational institution shall receive from the organizer of a charter school sponsored by the state educational institution an administrative fee equal to not more than three percent (3%) of the total amount the organizer receives under section 2 of this chapter.
    Sec. 4. An organizer may apply for and accept for a charter school:
        (1) independent financial grants; or


        (2) funds from public or private sources other than the department.
    Sec. 5. With the approval of a majority of the members of the governing body, a school corporation may distribute a proportionate share of the school corporation's capital project fund to a charter school.
".
    Delete pages 9 through 11.
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    Page 12, line 16, delete "attending the charter school" and insert " residing within the school corporation's geographic boundaries.".
    Page 12, delete lines 17 through 19.
    Page 12, line 20, delete "kindergarten through grade 12.".
    Page 12, delete lines 22 through 28, begin a new line double block indented and insert:
            " (A) charge tuition for a preschool program, unless charging tuition for the preschool program is barred under federal law; or
            (B) charge tuition for a latch key program;
".
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        " (3) Except for a foreign exchange student who is not a United States citizen, enroll a pupil who is not a resident of Indiana.".
    Page 12, line 30, delete "(3)" and insert " (4)".
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        " (5) Provide home based instruction.".
    Page 12, line 40, delete "specifically".
    Page 13, between lines 1 and 2, begin a new line block indented and insert:
        " (3) A rule or guideline adopted by the professional standards board (established by IC 20-1-1.4-2 ), except for those rules that assist a teacher in gaining or renewing a standard or an advanced license.".
    Page 13, line 2, delete "(3)" and insert " (4)".
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    Page 13, line 12, delete "(5)" and insert " (4)".
    Page 13, line 13, delete "and federal".
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    Page 13, line 22, delete "(9)" and insert " (5)".
    Page 13, line 24, delete "(10)" and insert " (6)".
    Page 13, line 25, delete "(11)" and insert " (7)".
    Page 13, line 26, delete "(12)" and insert " (8)".
    Page 13, line 26, delete "education)." and insert " school attendance).".
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    Page 13, line 29, delete "(15)" and insert " (9)".
    Page 13, line 31, delete "(16)" and insert " (10)".
    Page 13, line 32, delete "(17)" and insert " (11)".
    Page 13, line 34, delete "(18)" and insert " (12)".
    Page 13, line 36, delete "(19)" and insert " (13)".
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        " (14) IC 20-10.1-2-4 and IC 20-10.1-2-6 (patriotic commemorative observances).".
    Page 13, line 39, delete "(21)" and insert " (15)".
    Page 14, line 1, delete "(22)" and insert " (16)".
    Page 14, line 2, delete "(23)" and insert " (17)".
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    Page 14, line 34, delete "law." and insert " laws.".
    Page 15, line 31, delete "sixty-seven percent (67%)" and insert " fifty-one percent (51%)".
    Page 15, delete lines 35 through 42, begin a new paragraph and insert:
    " Sec. 2. If the conditions of section 1 of this chapter are met, the teachers and parents may appoint a committee to act as organizers for the charter school.
    Sec. 3. The organizers shall submit a proposal under IC 20-5.5-3 to the governing body of the school corporation in which an existing elementary or secondary school is located to convert the existing school into a charter school.
    Sec. 4. Only the governing body of the school corporation in which an existing public elementary or secondary school that seeks conversion to a charter school is located may act as the sponsor of the conversion charter school.
    Sec. 5. An existing public school that is converted into a charter school remains subject to an existing collective bargaining agreement unless at least fifty-one percent (51%) of the certificated staff of the school vote to remove the school from the collective bargaining agreement.
".
    Delete pages 16 through 17.
    Page 18, delete lines 1 through 11, begin a new paragraph and insert:
SOURCE: IC 20-6.1-3-3; (01)AM210207.2. -->     "SECTION 2. IC 20-6.1-3-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3. (a) The board shall

designate:
        (1) the grade average required for each kind of license; and
        (2) the kinds of license to which the teachers' minimum salary laws apply, including nonrenewable one (1) year limited licenses.
    (b) The board shall determine details of licensing not provided in this chapter. These details may include requirements regarding:
        (1) the conversion of one kind of license into another;
        (2) the accreditation of teacher training schools and departments;
        (3) the exchange and renewal of licenses;
        (4) the endorsement of another state's license;
        (5) the acceptance of credentials from teacher training institutions of another state;
        (6) the academic and professional preparation for each kind of license;
        (7) the granting of permission to teach a high school subject area related to the subject area for which the teacher holds a license;
        (8) the issuance of licenses on credentials;
        (9) the kind of license for each school position;
        (10) the size of an elementary school requiring a licensed principal; and
        (11) the transition to teaching program established by section 11 of this chapter; and
        (12)
other related matters.
However, the board shall, not later than December 31, 1984, establish at least one (1) system for renewing a teaching license that does not require a graduate degree.
    (c) The board shall periodically publish bulletins regarding:
        (1) the details described in subsection (b);
        (2) information on the kinds of licenses issued;
        (3) the rules governing the issuance of each kind of license; and
        (4) other similar matters.

SOURCE: IC 20-6.1-3-11; (01)AM210207.3. -->     SECTION 3. IC 20-6.1-3-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 11. (a) As used in this section, "program" refers to the transition to teaching program established by subsection (b).
    (b) The transition to teaching program is established to accomplish the following:
        (1) Facilitate the transition into the teaching profession of competent professionals in fields other than teaching.
        (2) Allow competent professionals who do not hold a teaching license to earn and be issued a teaching license through participation in and satisfactory completion of the program.
    (c) Subject to the requirements of this section, the board shall develop and administer the program. The board shall determine the details of the program that are not included in this section.
    (d) Each accredited teacher training school and department shall establish a course of study that constitutes the higher education component of the program. The higher education component required under this subsection must comply with the following requirements:
        (1) Include the following study requirements:
            (A) For a program participant who seeks to obtain a license to teach in grade 6 through grade 12, up to eighteen (18) credit hours of study or the equivalent that prepare a program participant to meet Indiana standards for teaching in the subject areas corresponding to the area in which the program participant has met the education requirements under subsection (e), unless the program participant demonstrates that the program participant requires fewer credit hours of study to meet Indiana standards for teaching.
            (B) For a program participant who seeks to obtain a license to teach in kindergarten through grade 5, twenty-four (24) credit hours of study or the equivalent, which must include at least six (6) credit hours in the teaching of reading, that prepare a program participant to meet Indiana standards for teaching, unless the program participant demonstrates that the program participant requires fewer credit hours of study to meet Indiana standards for teaching.
        (2) Focus on the communication of knowledge to students.
        (3) Include suitable field or classroom experiences if the program participant does not have teaching experience.
    (e) A person who wishes to participate in the program must have one (1) of the following qualifications:
        (1) For a program participant who seeks to obtain a license to teach in grade 6 through grade 12, one (1) of the following:
            (A) A bachelor's degree or the equivalent with a grade point average of three (3.0) on a four (4.0) scale from an accredited institution of higher education in the subject area that the person intends to teach.
            (B) A graduate degree from an accredited institution of higher education in the subject area that the person intends to teach.
            (C) Both:
                (i) a bachelor's degree from an accredited institution of higher education with a grade point average of two and five-tenths (2.5) on a four (4) point scale; and
                (ii) five (5) years of professional experience;
            in the subject area that the person intends to teach.
        (2) For a program participant who seeks to obtain a license to teach in kindergarten through grade 5, one (1) of the following:
            (A) A bachelor's degree or the equivalent with a grade point average of three (3.0) on a four (4.0) scale from an accredited institution of higher education.
            (B) Both:
                (i) a bachelor's degree from an accredited institution of higher education with a grade point average of two and five-tenths (2.5) on a four (4.0) point scale; and
                (ii) five (5) years of professional experience in an education-related field.
    (f) The board shall grant an initial standard license to a program participant who does the following:
        (1) Successfully completes the higher education component of the program.
        (2) Demonstrates proficiency through a written examination in:
            (A) basic reading, writing, and mathematics;
            (B) pedagogy; and
            (C) knowledge of the areas in which the program participant is required to have a license to teach;
        under section 10.1(a) of this chapter.
        (3) Participates successfully in a beginning teacher internship program under IC 20-6.1-8 that includes implementation in a classroom of the teaching skills learned in the higher education component of the program.
        (4) Receives a successful assessment of teaching skills upon completion of the beginning teacher internship program from the administrator of the school where the beginning teacher internship program takes place, upon the recommendation of the participant's teacher mentor, or, if the program participant does not receive a successful assessment, participates in the beginning teacher internship program for a second year, as provided under IC 20-6.1-8-13. The appeals provisions of IC 20-6.1-8-14 apply to an assessment under this

subdivision.
    (g) This subsection applies to a program participant who has a degree described in subsection (e) that does not include all the content areas of a standard license issued by the board. The board shall issue an initial standard license that is restricted to only the content areas in which the program participant has a degree unless the program participant demonstrates sufficient knowledge in other content areas of the license.
    (h) A school corporation may hire a program participant to teach only in the subject area in which the participant meets the qualifications set forth under subsection (e).
    (i) After receiving an initial standard license under subsections (f) or (g) a program participant who seeks to renew the participant's initial standard license must meet the same requirements as other candidates for license renewal.
    (j) The board may adopt rules under IC 4-22-2 to administer this section. Rules adopted under this subsection must include a requirement that accredited teacher training schools and departments submit an annual report to the board of the number of individuals who:
        (1) enroll in; and
        (2) complete;
the program.
".

SOURCE: Page 19, line 3; (01)AM210207.19. -->     Page 19, line 3, after "work" insert ",".
    Page 21, between lines 1 and 2, begin a new paragraph and insert:
SOURCE: IC 20-10.2-2-3.5; (01)AM210207.5. -->     "SECTION 5. IC 20-10.2-2-3.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 3.5. "Charter school" refers to a public school created and operating under IC 20-5.5.
SOURCE: IC 20-10.2-3-1.5; (01)AM210207.6. -->     SECTION 6. IC 20-10.2-3-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 1.5. (a) This section applies to a charter school.
    (b) A charter entered into under IC 20-5.5-4 may be used as a charter school's three (3) year strategic and continuous school improvement and achievement plan.

SOURCE: IC 20-10.2-6-1; (01)AM210207.7. -->     SECTION 7. IC 20-10.2-6-1 , AS ADDED BY P.L.221-1999, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 1. This chapter does not apply to:
         (1) a nonpublic school; or
        (2) a charter school.

SOURCE: ; (01)AM210207.8. -->     SECTION 8. [EFFECTIVE JULY 1, 2001] (a) There is

appropriated to the department of education fifty thousand dollars ($50,000) from the state general fund in each state fiscal year of the biennium beginning July 1, 2001, and ending June 30, 2003, for its use in carrying out its responsibilities under IC 20-5.5, as added by this act, and to provide advisory assistance to school corporations and charter schools for programs under IC 20-5.5, as added by this act.
    (b) This SECTION expires June 30, 2003.
".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 2102 as printed February 15, 2001.)

and when so amended that said bill do pass .

Committee Vote: Yeas 6, Nays 5.

____________________________________

Senator Lubbers, Chairperson


AM 210207/DI 71    2001