HB 1812-9_ Filed 02/28/2005, 07:59 Behning

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    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______





    I move that House Bill 1812 be amended to read as follows:

SOURCE: Page 4, line 21; (05)MO181209.4. -->     Page 4, between lines 21 and 22, begin a new paragraph and insert:
SOURCE: IC.20-8.1-6.1-14; (05)MO181209.2. -->     "SECTION 2. IC.20-8.1-6.1-14 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 14. (a) As used in this section, "ADM" has the meaning set forth in IC 21-3-1.6-1.1. The term includes adjusted ADM.
    (b) As used in this section, "eligible student" means a student who meets the requirements of subsection (f).
    (c) As used in this section, "school of choice" means a nonpublic school (as defined in IC 20-10.1-1-3) or a public school (as defined in IC 20-10.1-1-2) in which a dependent is enrolled but that is not the dependent's school of legal settlement for purposes of the general school tuition support formula, if the school:
        (1) is accredited by the state of Indiana or a national accrediting body;
        (2) complies with all health and safety laws that apply to public or nonpublic schools, respectively;
        (3) holds a valid occupancy permit if required; and
        (4) certifies that it will not discriminate in admissions on the basis of race, color, or national origin.
    (d) As used in this section, "scholarship" refers to a scholarship provided under the scholarship program established by subsection (e).
    (e) There is established the freedom to choose scholarship program to assist parents and guardians to pay the costs of their

child attending a school of choice.
    (f) A student who meets the following requirements is eligible for a scholarship for a school year:
        (1) The student was enrolled in a public school during the school year preceding the first school year for which a scholarship is sought.
        (2) The public school attended by the student under subdivision (1) has an Indiana statewide testing for educational progress test (ISTEP) school corporation passing percentage below fifty percent (50%) using the students who had ISTEP tests administered by the school corporation during the school year and the percentage who scored below the academic standards set for the test.
        (3) The student has legal settlement in a school corporation located in Indiana.
        (4) The student is enrolled in a school of choice for the school year for which a scholarship is sought.
        (5) The student is a member of a household with an annual household income that is not more than three hundred fifty percent (350%) of the federal income poverty level as determined annually by the federal Office of Management and Budget under 42 U.S.C. 9902.
    (g) The parent or guardian of an eligible student seeking a scholarship must apply to the department. The department shall prescribe the form of the application. The application must be filed after June 15 and before July 15 for a scholarship for the upcoming school year. The department shall make a determination whether an applicant has an eligible student within thirty (30) days after the application is filed. The amount of the scholarship for each eligible student who is enrolled in a nonpublic school of choice is the lesser of:
        (1) the cost of tuition, textbooks, and other mandatory fees, not including fees for extracurricular activities, charged by the school of choice for the eligible student; or
        (2) the sum of the average amount per ADM with respect to the public school in which the dependent is eligible for enrollment for:
            (A) all components of state tuition support and categorical grants, except special education grants; plus
            (B) the ad valorem property taxes for the school corporation's general fund;
        for the school year for which the scholarship applies. The department shall provide the full scholarship amount by paying equal installments to the school of choice at the same times the department makes a tuition support distribution to the public school in which the eligible student has legal

settlement. If an eligible student withdraws from a school of choice, the school of choice shall notify the department within ten (10) days. The department shall thereafter terminate payments to the school of choice for that student.
    (h) To receive a scholarship distribution, a school of choice must agree with the department to do the following:
        (1) Determine before enrolling any potential scholarship students the specific number of scholarship students that will be admitted, and, if applicants under the program exceed the determined number of spaces available at any particular grade level, conduct a random selection process to determine those students that are admitted to that grade level. Exceptions to this random selection may be made to accommodate siblings of students who are already enrolled or selected for enrollment in the school.
        (2) Not charge any tuition or other fees in excess of the scholarship amount.
        (3) Not charge any tuition or other fees under the scholarship program that exceed the standard rates charged to other students who pay tuition to enroll in the school.
        (4) Not refund, rebate, or share a student's scholarship with a parent or the student in any manner.
        (5) Use a student's scholarship only for educational purposes.
        (6) Provide regular academic progress reports to the parents of students enrolled under the scholarship program.
    (i) Notwithstanding the state tuition support formula and laws governing the counting of pupils in ADM, an eligible student who:
        (1) is enrolled in a school of choice that is a public school; and
        (2) is not already being counted in ADM of the school corporation in which the student has legal settlement;
shall, for purposes of calculating tuition support distributions, be counted as a full additional ADM of the school corporation in which the public school of choice is located after otherwise computing the ADM of that school corporation under the state tuition support formula. This subsection applies to a school corporation for purposes of calculating tuition support distributions regardless of how the scholarship student might otherwise be treated under the school funding formula.

    (j) An amount sufficient to provide scholarships and grants under this chapter shall be paid from the state general fund.
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1812 as printed February 9, 2005.)


Representative Behning

MO181209/DI 58     2005