HB 1234-5_ Filed 02/17/2004, 10:35 Sipes

SENATE MOTION


MADAM PRESIDENT:

    I move
that Engrossed House Bill 1234 be amended to read 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 1; (04)MO123418.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 21-1-4-1; (04)MO123418.1. -->     "SECTION 1. IC 21-1-4-1, AS AMENDED BY P.L.276-2003, SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. (a) It is the duty of the general assembly under the Constitution of the State of Indiana to encourage by all suitable means moral, intellectual, scientific, and agricultural improvement and to provide, by law, for a general and uniform system of common schools, wherein tuition shall be without charge, and equally open to all.
    (b) It is the intent of the general assembly that:
        (1) the common school fund should be used to:
            (A) assist school corporations and school townships in financing their school building construction and educational technology programs; and
            (B) assist charter schools in financing their operations;
        as authorized by law and under circumstances such that the principal of the fund remains inviolate;
        (2) to the end described in subdivision (1), the common school fund may be used to make advances to:
            (A) school corporations and school townships under IC 21-1-5 and IC 21-1-31; and
            (B) charter schools under IC 20-5.5-7-3.5(f) and IC 20-5.5-7.5; and
        (3) this chapter is in furtherance of the duties which are imposed exclusively upon the general assembly by the Constitution of the State of Indiana in connection with the maintenance of a general and uniform system of common schools and the investment and

reinvestment of the common school fund and shall be liberally construed to carry out the purposes of the Constitution of the State of Indiana.
    (c) In addition, the common school fund may be used to make advances under IC 21-1-5.1.

SOURCE: IC 21-1-31; (04)MO123418.2. -->     SECTION 2. IC 21-1-31 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]:
     Chapter 31. Early Learning Program
    Sec. 1. As used in this chapter, "department" refers to the department of education.
    Sec. 2. As used in this chapter, "eligible student" refers to an eligible student determined under section 8 of this chapter.
    Sec. 3. As used in this chapter, "fund" refers to early learning fund.
    Sec. 4. As used in this chapter, "school" means any school maintained by a school corporation.
    Sec. 5. As used in this chapter, "school corporation" has the meaning set forth in IC 21-3-1.6-1.1.

    Sec. 6. The department shall establish a program to make:
        (1) advances from the common school fund beginning after June 30, 2004, to any school corporation that applies for an advance in the manner prescribed by the department to establish, continue, or expand voluntary kindergarten programs in one (1) or more schools in the school corporation; and
        (2) make grants from the early learning fund beginning July 1, 2005, to school corporations to provide a means of repaying the advances made under subdivision (1).
    Sec. 7. Subject to section 10 of this chapter, the amount of an advance that a school corporation is eligible to receive is equal to one thousand five hundred dollars ($1,500) for each eligible student, as determined under section 8 of this chapter.
    Sec. 8. The number of eligible students in a school corporation is equal to the number of students in the school corporation who are enrolled in full day kindergarten in the current school year, as determined in one (1) or more counts of students made under the rules adopted the department.
    Sec. 9. Not more than twenty-five million dollars ($25,000,000) may be advanced to school corporations under this chapter in any school year.
    Sec. 10. (a) If in any school year, insufficient money is available from the amount specified in section 9 of this chapter to make advances for all eligible students enrolled in all applicant

school corporations, money shall be awarded in the following order until the amount available for advances under section 9 of this chapter is exhausted:
        (1) The amounts determined under subsection (b).
        (2) The amounts determined under subsection (c).
        (3) The amounts determined under subsection (d).
    (b) The department shall first award advances for full day kindergarten in the amount determined under STEP FIVE of the following formula:
        STEP ONE: For each school that received state funding for full day kindergarten in the immediately previous school year, determine the number of eligible students enrolled in the current school year in the school.
        STEP TWO: For each school described in STEP ONE, multiply the number determined under STEP ONE by the amount of the advance determined under section 7 of this chapter.
        STEP THREE: Rank each school described in STEP ONE by the percentage of eligible students eligible for a free or reduced school lunch program, with the school with the highest percentage ranked first and the school with the lowest percentage ranked last.
        STEP FOUR: Beginning with the school ranked first under STEP THREE and proceeding through the school ranked last under STEP THREE, allocate the lesser of the following to each school:
            (A) The amount determined for the school under STEP TWO.
            (B) The amount remaining from the amounts available for full day kindergarten advances after allocating money to each school with a higher ranking under STEP THREE.
        STEP FIVE: Distribute to each school corporation the sum of the amounts allocated under STEP FOUR for each school in the school corporation.
    (c) If the amount available for full day kindergarten advances has a balance after making all of the distributions required under subsection (b), advances shall be made in the amount determined under STEP FIVE of the following formula:
        STEP ONE: For each Title I school that did not receive state funding for full day kindergarten in the immediately previous school year, determine the number of eligible students enrolled in the current school year.
        STEP TWO: For each school described in STEP ONE, multiply the number determined under STEP ONE by the amount of the advance determined under section 7 of this chapter.


        STEP THREE: Rank each school described in STEP ONE by the percentage of eligible students eligible for a free or reduced school lunch program, with the school with the highest percentage ranked first and the school with the lowest percentage ranked last.
        STEP FOUR: Beginning with the school ranked first under STEP THREE and proceeding through the school ranked last under STEP THREE, allocate the lesser of the following to each school:
            (A) The amount determined for the school under STEP TWO.
            (B) The amount remaining from amounts available for full day kindergarten advances after allocating money to each school with a higher ranking under STEP THREE.
        STEP FIVE: Distribute to each school corporation the sum of the amounts allocated under STEP FOUR for each school in the school corporation.
    (d) If the amount available for full day kindergarten advances has a balance after making all of the distributions required under subsections (b) and (c), advances shall be distributed in the amount determined under STEP FIVE of the following formula:
        STEP ONE: For each school that is not described in subsection (b) or (c), determine the number of eligible students enrolled in the current school year in the school.
        STEP TWO: For each school described in STEP ONE, multiply the number determined under STEP ONE by the amount of the advance determined under section 7 of this chapter.
        STEP THREE: Rank each school described in STEP ONE by the percentage of eligible students eligible for a free or reduced school lunch program, with the school with the highest percentage ranked first and the school with the lowest percentage ranked last.
        STEP FOUR: Beginning with the school ranked first under STEP THREE and proceeding through the school ranked last under STEP THREE, allocate the lesser of the following to each school:
            (A) The amount determined for the school under STEP TWO.
            (B) The amount remaining from amounts available for full day kindergarten advances after allocating money to each school with a higher ranking under STEP THREE.
        STEP FIVE: Distribute to each school corporation the sum of the amounts allocated under STEP FOUR for each school in the school corporation.
    Sec. 11. The program must provide for an application procedure. An application for an advance must:
        (1) be on a form prescribed by the department;
        (2) be signed by the superintendent of the school corporation applying for the advance; and
        (3) include the following information:
            (A) A detailed description of the proposed program or programs.
            (B) Evidence supporting the applicant's need for the program or programs.
            (C) Other pertinent information required by the department, including evidence guaranteeing the applicant has developed a plan to evaluate the effect and results of the applicant's program or programs.
    Sec. 12. The department may approve an application only if the department determines that the application complies with:
        (1) the requirements set forth in this chapter; and
        (2) the standards established in the rules adopted by the department.
    Sec. 13. The program must provide that the recipient of the advance is required to enter into a written agreement with the department to:
        (1) use the advance only for the purposes specified in the agreement or an amendment to the agreement; and
        (2) comply with the other terms established by the department as a condition of receiving the advance.
    Sec. 14. The department shall provide the budget agency with:
        (1) a list of all approved applicants that includes the amount approved for distribution; and
        (2) a copy of each approved application.
    Sec. 15. (a) The agreement must provide that the advance is:
        (1) being made without interest on the outstanding balance or any fee; and
        (2) payable from grants made under this chapter on the schedule determined by the department.
    (b) The agreement must include a schedule of the anticipated grants that will be made to the school corporation to repay the advance.
    (c) The amount of the required payment in any month may not exceed the amount of the anticipated grant payment for that month.
    Sec. 16. An agreement for an advance must include a provision allowing the state to withhold any funds due to a school corporation to reimburse the common school fund for an advance

if repayment is not made in conformity with the terms of the agreement.
    Sec. 17. An agreement for an advance for a full day kindergarten program must prohibit the imposition of a fee for students who participate in the program and qualify for a free or reduced lunch program.
    Sec. 18. The department shall:
        (1) provide for the distribution of the approved amount of an advance; and
        (2) administer and enforce the agreement made with the recipient.
    Sec. 19. Distributions of advances under this chapter shall be made at the time and in the manner prescribed by the department.
    Sec. 20. (a) The early learning fund is established. The early learning fund shall be administered by the department.
    (b) The treasurer of state shall invest money in the early learning fund not currently needed to meet the obligations of the early learning fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the early learning fund.
    (c) Money in the early learning fund is annually appropriated for the purposes of the early learning fund.
    (d) Money in the early learning fund at the end of a state fiscal year does not revert to the state general fund.
    Sec. 21. The department shall establish a program to make grants from the early learning fund after June 30, 2005, to school corporations that receive an advance under this chapter for the purpose of repaying the amount of the advance or advances made to the school corporation under this chapter from the common school fund.
    Sec. 22. Grants shall be made at the times and in the manner specified in the agreements made with the recipients of advances under this chapter. Subject to the availability of money in the early learning fund, grants shall be made in the amounts necessary for a school corporation to comply with the repayment schedule imposed under the agreement entered into by the school corporation under this chapter.
    Sec. 23. The department shall withhold the amount of the grants due to the school corporation to reimburse the common school fund for the advance or advances made to the school corporation and reduce the amount owed by the school corporation by the amount withheld.

SOURCE: IC 32-34-1-34; (04)MO123418.3. -->     SECTION 3. IC 32-34-1-34, AS ADDED BY P.L.2-2002, SECTION

19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 34. (a) Except as provided in section 42(d) of this chapter, the treasurer of state shall, on order of the attorney general, pay the necessary costs of the following:
        (1) Selling abandoned property.
        (2) Mailing notices.
        (3) Making publications required by this chapter.
        (4) Paying other operating expenses and administrative expenses, including:
            (A) salaries and wages reasonably incurred by the attorney general in the administration and enforcement of this chapter; and
            (B) costs incurred in examining records of the holders of property and in collecting the property from the holders.
    (b) If the balance of the principal of the abandoned property fund established by section 33 of this chapter exceeds five hundred thousand dollars ($500,000), the treasurer of state:
         (1) shall, after June 30, 2005, transfer in each state fiscal year the lesser of:
            (A) the balance in the fund exceeding five hundred thousand dollars ($500,000); or
            (B) twenty-five million dollars ($25,000,000);
        from the abandoned property fund to the early learning fund established under IC 21-1-31 in quarterly installments; and
        (2)
may, and at least once each state fiscal year, shall, transfer to the common school fund of the state the balance of the principal of the abandoned property fund that exceeds the sum of the amount transferred under subdivision (1) and five hundred thousand dollars ($500,000).
    (c) If a claim is allowed or a refund is ordered under this chapter that is more than five hundred thousand dollars ($500,000), the treasurer of state shall transfer from the state general fund sufficient money to make prompt payment of the claim. There is annually appropriated to the treasurer of state from the state general fund the amount of money sufficient to implement this subsection.
    (d) Before making a deposit into the abandoned property fund, the attorney general shall record the following:
        (1) The name and last known address of each person appearing from the holder's reports to be entitled to the abandoned property.
        (2) The name and last known address of each insured person or annuitant.
        (3) The number, the name of the corporation, and the amount due concerning any policy or contract listed in the report of a life insurance company.
    (e) Except as provided in subsection (f), earnings on the property custody fund and the abandoned property fund shall be credited to each

fund.
    (f) On July 1 of each year, the interest balance in the property custody fund established by section 32 of this chapter and the interest balance in the abandoned property fund shall be transferred to the state general fund.

SOURCE: ; (04)MO123418.4. -->     SECTION 4. [EFFECTIVE UPON PASSAGE] (a) The definitions in IC 21-1-31, as added by this act, apply throughout this SECTION.
    (b) The appropriation of eight million five hundred thousand dollars ($8,500,000) made to the department of education for total operating expense for full day kindergarten by P.L.224-2003, SECTION 9, for the state fiscal year beginning July 1, 2004, and ending June 30, 2005, is canceled.
    (c) There is appropriated to the early learning trust fund from the state general fund eight million five hundred thousand dollars ($8,500,000) for use in carrying out the purposes of this SECTION during the state fiscal year beginning July 1, 2004, and ending June 30, 2005.
    (d) In addition to advances made under IC 21-1-31, as added by this act, the department of education shall make grants to school corporations for full day kindergarten programs under this SECTION. A school corporation may apply for a grant in the manner and on the forms prescribed by the department of education. The amount of a grant to an applicant school corporation is the amount specified under IC 21-1-31-7, as added by this act, for an advance. If insufficient money is available from the amount appropriated under this SECTION to make grants for all eligible students enrolled in all applicant school corporations, money shall be awarded to schools on the same priority basis as advances are to be awarded under IC 21-1-31-10, as added by this act. If a school is eligible for a grant under this SECTION and an advance under IC 21-1-31, as added by this act, the department of education shall award grants until the amount appropriated under this SECTION is exhausted and then award an advance to cover any remaining amount to which the school is eligible.
    (e) A school corporation that is awarded a grant must provide to the department of education a financial report stating how the funds were spent. Any unspent funds on July 1, 2005, must be returned to the state by the school corporation.
    (f) The department of education may adopt temporary rules in the manner provided for the adoption of emergency rules under IC 4-22-2-37.1 to implement this SECTION and IC 21-1-31, as added by this act. A temporary rule adopted under this subsection expires on the earliest of the following:
        (1) The date that another temporary rule adopted under this subsection supersedes the prior temporary rule.
        (2) The date that permanent rules adopted under IC 4-22-2 supersede the temporary rule.
        (3) July 1, 2005.
    (g) This SECTION expires July 1, 2005.
".
    Renumber all SECTIONS consecutively.
    (Reference is to EHB 1234 as printed February 13, 2004.)

________________________________________

Senator SIPES


MO123418/DI 51
2004