First Regular Session 114th General Assembly (2005)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE ENROLLED ACT No. 1288



    AN ACT to amend the Indiana Code concerning education.

    Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 20-17 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]:
    ARTICLE 17. EFFECT OF RECODIFICATION OF TITLE 20
    Chapter 1. Effect of Recodification by the Act of the 2005 Regular Session of the General Assembly
    Sec. 1. As used in this chapter, "prior law" refers to the statutes concerning education that are repealed or amended in the recodification act of the 2005 regular session of the general assembly as the statutes existed before the effective date of the applicable or corresponding provision of the recodification act of the 2005 regular session of the general assembly.
    Sec. 2. The purpose of the recodification act of the 2005 regular session of the general assembly is to recodify prior law in a style that is clear, concise, and easy to interpret and apply. Except to the extent that:
        (1) the recodification act of the 2005 regular session of the general assembly is amended to reflect the changes made in a provision of another bill that adds to, amends, or repeals a provision in the recodification act of the 2005 regular session of the general assembly; or
        (2) the minutes of meetings of the code revision commission

during 2004 expressly indicate a different purpose;
the substantive operation and effect of the prior law continue uninterrupted as if the recodification act of the 2005 regular session of the general assembly had not been enacted.
    Sec. 3. Subject to section 2 of this chapter, sections 4 through 9 of this chapter shall be applied to the statutory construction of the recodification act of the 2005 regular session of the general assembly.
    Sec. 4. (a) The recodification act of the 2005 regular session of the general assembly does not affect:
        (1) any rights or liabilities accrued;
        (2) any penalties incurred;
        (3) any violations committed;
        (4) any proceedings begun;
        (5) any bonds, notes, loans, or other forms of indebtedness issued, incurred, or made;
        (6) any tax levies made or authorized;
        (7) any funds established;
        (8) any patents issued;
        (9) the validity, continuation, or termination of any contracts, easements, or leases executed;
        (10) the validity, continuation, scope, termination, suspension, or revocation of:
            (A) permits;
            (B) licenses;
            (C) certificates of registration;
            (D) grants of authority; or
            (E) limitations of authority; or
        (11) the validity of court decisions entered regarding the constitutionality of any provision of the prior law;
before the effective date of the recodification act of the 2005 regular session of the general assembly (July 1, 2005). Those rights, liabilities, penalties, violations, proceedings, bonds, notes, loans, other forms of indebtedness, tax levies, funds, patents, contracts, easements, leases, permits, licenses, certificates of registration, grants of authority, and limitations of authority continue and shall be imposed and enforced under prior law as if the recodification act of the 2005 regular session of the general assembly had not been enacted.
    (b) The recodification act of the 2005 regular session of the general assembly does not:
        (1) extend or cause to expire a permit, license, certificate of

registration, or other grant or limitation of authority; or
        (2) in any way affect the validity, scope, or status of a license, permit, certificate of registration, or other grant or limitation of authority;
issued under the prior law.
    (c) The recodification act of the 2005 regular session of the general assembly does not affect the revocation, limitation, or suspension of a permit, license, certificate of registration, or other grant or limitation of authority based in whole or in part on violations of the prior law or the rules adopted under the prior law.
    Sec. 5. The recodification act of the 2005 regular session of the general assembly shall be construed as a recodification of prior law. Except as provided in section 2(1) and 2(2) of this chapter, if the literal meaning of the recodification act of the 2005 regular session of the general assembly (including a literal application of an erroneous change to an internal reference) would result in a substantive change in the prior law, the difference shall be construed as a typographical, spelling, or other clerical error that must be corrected by:
        (1) inserting, deleting, or substituting words, punctuation, or other matters of style in the recodification act of the 2005 regular session of the general assembly; or
        (2) using any other rule of statutory construction;
as necessary or appropriate to apply the recodification act of the 2005 regular session of the general assembly in a manner that does not result in a substantive change in the law. The principle of statutory construction that a court must apply the literal meaning of an act if the literal meaning of the act is unambiguous does not apply to the recodification act of the 2005 regular session of the general assembly to the extent that the recodification act of the 2005 regular session of the general assembly is not substantively identical to the prior law.
    Sec. 6. Subject to section 9 of this chapter, a reference in a statute or rule to a statute that is repealed and replaced in the same or a different form in the recodification act of the 2005 regular session of the general assembly shall be treated after the effective date of the new provision as a reference to the new provision.
    Sec. 7. A citation reference in the recodification act of the 2005 regular session of the general assembly to another provision of the recodification act of the 2005 regular session of the general assembly shall be treated as including a reference to the provision of prior law that is substantively equivalent to the provision of the

recodification act of the 2005 regular session of the general assembly that is referred to by the citation reference.
    Sec. 8. (a) As used in the recodification act of the 2005 regular session of the general assembly, a reference to rules adopted under any provision of this title or under any other provision of the recodification act of the 2005 regular session of the general assembly refers to either:
        (1) rules adopted under the recodification act of the 2005 regular session of the general assembly; or
        (2) rules adopted under the prior law until those rules have been amended, repealed, or superseded.
    (b) Rules adopted under the prior law continue in effect after June 30, 2005, until the rules are amended, repealed, or suspended.
    Sec. 9. (a) A reference in the recodification act of the 2005 regular session of the general assembly to a citation in the prior law before its repeal is added in certain sections of the recodification act of the 2005 regular session of the general assembly only as an aid to the reader.
    (b) The inclusion or omission in the recodification act of the 2005 regular session of the general assembly of a reference to a citation in the prior law before its repeal does not affect:
        (1) any rights or liabilities accrued;
        (2) any penalties incurred;
        (3) any violations committed;
        (4) any proceedings begun;
        (5) any bonds, notes, loans, or other forms of indebtedness issued, incurred, or made;
        (6) any tax levies made or authorized;
        (7) any funds established;
        (8) any patents issued;
        (9) the validity, continuation, or termination of contracts, easements, or leases executed;
        (10) the validity, continuation, scope, termination, suspension, or revocation of:
            (A) permits;
            (B) licenses;
            (C) certificates of registration;
            (D) grants of authority; or
            (E) limitations of authority; or
        (11) the validity of court decisions entered regarding the constitutionality of any provision of the prior law;
before the effective date of the recodification act of the 2005

regular session of the general assembly (July 1, 2005). Those rights, liabilities, penalties, violations, proceedings, bonds, notes, loans, other forms of indebtedness, tax levies, funds, patents, contracts, easements, leases, permits, licenses, certificates of registration, grants of authority, and limitations of authority continue and shall be imposed and enforced under prior law as if the recodification act of the 2005 regular session of the general assembly had not been enacted.
    (c) The inclusion or omission in the recodification act of the 2005 regular session of the general assembly of a citation to a provision in the prior law does not affect the use of a prior conviction, violation, or noncompliance under the prior law as the basis for revocation of a license, permit, certificate of registration, or other grant of authority under the recodification act of the 2005 regular session of the general assembly, as necessary or appropriate to apply the recodification act of the 2005 regular session of the general assembly in a manner that does not result in a substantive change in the law.

    SECTION 2. IC 20-18 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]:
    ARTICLE 18. GENERAL PROVISIONS
    Chapter 1. Applicability
    Sec. 1. Except as otherwise provided, this title applies to public school corporations.
    Chapter 2. Definitions
    Sec. 1. The definitions in this chapter apply throughout this title.
    Sec. 2. "Average daily membership" or "ADM" has the meaning set forth in IC 21-3-1.6-1.1(d).
    Sec. 3. "Department" refers to the department of education established by IC 20-19-3-1.
    Sec. 4. "Elementary school" means any combination of kindergarten and grades 1, 2, 3, 4, 5, 6, 7, or 8.
    Sec. 5. "Governing body" means:
        (1) a township trustee and the township board of a school township;
        (2) a county board of education;
        (3) a board of school commissioners;
        (4) a metropolitan board of education;
        (5) a board of trustees; or
        (6) any other board or commission charged by law with the responsibility of administering the affairs of a school

corporation.
    Sec. 6. "Graduation examination" means the test designated by the board under the ISTEP program.
    Sec. 7. "High school" means any combination of grades 9, 10, 11, or 12.
    Sec. 8. "Indiana physician" means an individual who holds an unlimited license to practice medicine in Indiana.
    Sec. 9. "Individualized education program" means a written statement developed for a child by a group that includes:
        (1) a representative of the school corporation or public agency responsible for educating the child;
        (2) the child's teacher;
        (3) the child's parent, guardian, or custodian;
        (4) if appropriate, the child; and
        (5) if the provision of services for a seriously emotionally disabled child is considered, a mental health professional provided by:
            (A) the community mental health center (as described in IC 12-29); or
            (B) a managed care provider (as defined in IC 12-7-2-127(b));
        serving the community in which the child resides;
and that describes the special education to be provided to the child.
    Sec. 10. "ISTEP program" refers to the Indiana statewide testing for educational progress program developed and administered under IC 20-32-5.
    Sec. 11. "Legal settlement" of a student means the student's status with respect to the school corporation that has the responsibility to allow the student to attend its local public schools without the payment of tuition, or to pay transfer tuition under IC 20-26-11 if the student attends school in a local public school of another school corporation.
    Sec. 12. (a) "Nonpublic school" means a school that is not maintained by a school corporation.
    (b) The term includes a private school or parochial school.
    Sec. 13. "Parent" means:
        (1) the natural father or mother of a child;
        (2) in the case of adoption, the adopting father or mother of a child;
        (3) if custody of the child has been awarded in a court proceeding to someone other than the mother or father, the court appointed guardian or custodian of the child; or


        (4) if the parents of a child are divorced, the parent to whom the divorce decree or modification awards custody or control with respect to a right or obligation under this title.
    Sec. 14. "Principal" refers to the chief administrative officer of a school.
    Sec. 15. "Public school" means a school maintained by a school corporation.
    Sec. 16. (a) "School corporation" means a public school corporation established by Indiana law.
    (b) The term includes a:
        (1) school city;
        (2) school town;
        (3) school township;
        (4) consolidated school corporation;
        (5) metropolitan school district;
        (6) township school corporation;
        (7) county school corporation;
        (8) united school corporation; or
        (9) community school corporation.
    Sec. 17. "School year" means the period:
        (1) beginning after June 30 of each year; and
        (2) ending before July 1 of the following year;
except when a different period is specified for a particular purpose.
    Sec. 18. "Secondary school" means a high school.
    Sec. 19. "State board" refers to the Indiana state board of education established by IC 20-19-2-2.
    Sec. 20. "State superintendent" refers to the state superintendent of public instruction.
    Sec. 21. "Superintendent" means:
        (1) the chief administrative officer of a school corporation; or
        (2) in the case of a township school, the county superintendent of schools.
    Sec. 22. (a) "Teacher" means a professional person whose position in a school corporation requires certain teacher training preparations and licensing.
    (b) For purposes of IC 20-28, the term includes the following:
        (1) A superintendent.
        (2) A supervisor.
        (3) A principal.
        (4) An attendance officer.
        (5) A teacher.
        (6) A librarian.
    Sec. 23. "Textbook" means systematically organized material designed to provide a specific level of instruction in a subject matter category.
    Sec. 24. "Transfer" with respect to a student refers to the situation in which the student, for all or part of the student's education, attends school in a public school of a school corporation other than the school corporation in which the student has legal settlement.
    Sec. 25. "Transferor corporation" and "transferee corporation" refer, respectively, in transfer situations to the school corporation of a student's legal settlement and the school corporation where the student attends school.
    Sec. 26. (a) "Transferred student" means a student attending school in a school corporation in which the student does not have legal settlement.
    (b) For purposes of subsection (a), a student is considered attending school in a school corporation when:
        (1) the student is confined by a disability to a place outside the school corporation's facilities and receives instruction from school corporation personnel;
        (2) the student attends a special or vocational education school in which the school corporation of the student's legal settlement provides cooperatively a portion of the cost; or
        (3) the student is in another similar situation.
    SECTION 3. IC 20-19 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]:
    ARTICLE 19. STATE ADMINISTRATION OF ELEMENTARY AND SECONDARY EDUCATION
    Chapter 1. State Superintendent of Public Instruction
    Sec. 1. (a) The state superintendent shall be elected under IC 3-10-2-6 by the voters of Indiana.
    (b) The term of office of the state superintendent is four (4) years:
        (1) beginning on the second Monday in January after election; and
        (2) continuing until a successor is elected and qualified.
    Sec. 2. The state superintendent is designated to, and may cooperate with, the Agricultural Marketing Service of the United States Department of Agriculture and with other federal relief agencies in the distribution of surplus agricultural commodities to the following:
        (1) School corporations.
        (2) Nonprofit nonpublic schools.
        (3) Township and county relief agencies.
        (4) Other nonprofit public and private institutions to which by law the commodities may be distributed.
    Sec. 3. The state superintendent has administrative duties and authority concerning the school lunch programs under IC 20-26-9.
    Chapter 2. State Board of Education
    Sec. 1. As used in this chapter, "advisory committee" refers to the advisory committee on textbook adoption established by section 3 of this chapter.
    Sec. 2. (a) The Indiana state board of education is established. The state board consists of:
        (1) the state superintendent; and
        (2) ten (10) members appointed by the governor.
    (b) The following provisions apply to members of the state board appointed by the governor:
        (1) At least four (4) of the members must be actively employed in the schools in Indiana and hold a valid teaching license.
        (2) At least one (1) member must be appointed from each congressional district in Indiana.
        (3) Not more than six (6) members of the state board may be appointed from the membership of any one (1) political party.
        (4) The term of office of a member begins on July 1. Except as provided in subdivision (5), the term of office of a member is four (4) years.
        (5) The governor may dismiss a member for just cause.
        (6) The governor may appoint a member to fill a vacancy occurring on the state board. A member appointed under this subdivision serves for the remainder of the unexpired term.
    (c) A quorum consists of six (6) members of the state board. An action of the state board is not official unless the action is authorized by at least six (6) members.
    (d) The state superintendent serves as chairperson of the state board.
    Sec. 3. (a) The advisory committee on textbook adoption is established. The advisory committee consists of:
        (1) the state superintendent or the state superintendent's designee; and
        (2) six (6) members appointed by the state superintendent.
    (b) The following provisions apply to members of the advisory committee appointed by the state superintendent:
        (1) At least four (4) of the members must be actively employed in the schools in Indiana and hold a valid teaching license.
        (2) Not more than four (4) of the members of the committee may be appointed from the membership of any one (1) political party.
        (3) Members serve at the pleasure of the state superintendent.
    (c) The state superintendent or the state superintendent's designee serves as chairperson of the advisory committee.
    Sec. 4. (a) The state board and the advisory committee shall meet at the times they determine.
    (b) The state board may establish other advisory committees as necessary to provide technical and professional assistance to the state board.
    Sec. 5. If the state board is required to conduct hearings under IC 4-21.5-3, the state board may use hearing examiners who are not members of the state board to conduct the hearings.
    Sec. 6. (a) The state board shall elect one (1) member to serve as secretary. The secretary shall:
        (1) maintain custody of the state board's records, papers, and effects; and
        (2) keep minutes of the state board's proceedings.
The records, papers, effects, and minutes of all meetings and actions of the state board shall be kept at the office of the state superintendent and are public records.
    (b) The state board shall adopt and use a seal that contains the words "Indiana State Board of Education". A written description of the seal shall be recorded in the minutes of the state board and filed in the office of the secretary of state. The seal shall be used for the authentication of the acts of the state board and the important acts of the department.
    Sec. 7. (a) Each member of the state board who is not an officer or employee of the state is entitled to an annual salary of two thousand dollars ($2,000).
    (b) Each member of the advisory committee who is not an officer or employee of the state is entitled to the minimum salary per diem provided in IC 4-10-11-2.1(b) while performing their respective duties as committee members.
    (c) Each member of the state board or the advisory committee is entitled to reimbursement for traveling expenses and other expenses actually incurred in connection with the member's duties, as provided in the state travel policies and procedures established by the Indiana department of administration and approved by the

budget agency. The compensation of members employed in the public schools may not be decreased because of regular service on the state board or the advisory committee.
    Sec. 8. (a) In addition to any other powers and duties prescribed by law, the state board shall adopt rules under IC 4-22-2 concerning, but not limited to, the following matters:
        (1) The designation and employment of the employees and consultants necessary for the department. The state board shall fix the compensation of employees of the department, subject to the approval of the budget committee and the governor under IC 4-12-2.
        (2) The establishment and maintenance of standards and guidelines, other than building, space, and site requirements, for media centers, libraries, instructional materials centers, or any other area or system of areas in a school where a full range of information sources, associated equipment, and services from professional media staff are accessible to the school community. With regard to library automation systems, the state board may only adopt rules that meet the standards established by the state library board for library automation systems under IC 4-23-7.1-11(b).
        (3) The establishment and maintenance of standards for student personnel and guidance services.
        (4) The establishment and maintenance of minimum standards for driver education programs (including classroom instruction and practice driving) and equipment. Classroom instruction standards established under this subdivision must include instruction about:
            (A) railroad-highway grade crossing safety; and
            (B) the procedure for participation in the human organ donor program.
        (5) The inspection of all public schools in Indiana to determine the condition of the schools. The state board shall establish standards governing the accreditation of public schools. Observance of:
            (A) IC 20-31-4;
            (B) IC 20-28-5-2;
            (C) IC 20-28-6-3 through IC 20-28-6-7;
            (D) IC 20-28-9-7 and IC 20-28-9-8;
            (E) IC 20-28-11; and
            (F) IC 20-31-3, IC 20-32-4, IC 20-32-5, IC 20-32-6, and IC 20-32-8;


        is a prerequisite to the accreditation of a school. Local public school officials shall make the reports required of them and otherwise cooperate with the state board regarding required inspections. Nonpublic schools may also request the inspection for classification purposes. Compliance with the building and site guidelines adopted by the state board is not a prerequisite of accreditation.
        (6) Subject to section 9 of this chapter, the adoption and approval of textbooks under IC 20-20-5.
        (7) The distribution of funds and revenues appropriated for the support of schools in the state.
        (8) The state board may not establish an accreditation system for nonpublic schools that is less stringent than the accreditation system for public schools.
        (9) A separate system for recognizing nonpublic schools under IC 20-19-2-10. Recognition of nonpublic schools under this subdivision constitutes the system of regulatory standards that apply to nonpublic schools that seek to qualify for the system of recognition.
    (b) Before final adoption of any rule, the state board shall make a finding on the estimated fiscal impact that the rule will have on school corporations.
    Sec. 9. (a) The advisory committee may initiate rules and hold public hearings under IC 4-22-2 on rules concerning the adoption of textbooks. The advisory committee shall send a proposed rule on which public hearings have been held to the state board. The state board may adopt or reject a rule initiated by the advisory committee. If the advisory committee holds hearings on a proposed rule, the state board is not required to hold hearings.
    (b) Every rule initiated by the state board concerning textbook adoption shall be sent to the advisory committee. Upon receipt of a rule initiated by the state board, the advisory committee may hold public hearings on the rule. If the advisory committee holds a public hearing on a rule initiated by the state board, the advisory committee shall send the proposed rule and a recommendation to the state board not more than ninety (90) days after the date the advisory committee receives the rule from the state board. If the advisory committee fails to hold a hearing or to return the proposed rule with a recommendation to the state board within the ninety (90) day period, the state board may:
        (1) hold public hearings on the proposed rule and proceed under IC 4-22-2; or
        (2) discontinue the proceedings.
    Sec. 10. (a) It is the policy of the state that the state:
        (1) recognizes that nonpublic schools provide education to children in Indiana;
        (2) has an interest in ensuring that all Indiana children are well educated in both curricular and extracurricular programs; and
        (3) should facilitate the transferability of comparable academic credit between appropriate nonpublic schools and state supported educational institutions.
    (b) The state board shall implement a system of recognition of the educational programs of nonpublic schools to fulfill the policy set forth in subsection (a).
    (c) The system of recognition described under subsection (b) must:
        (1) be voluntary in nature with respect to the nonpublic school;
        (2) recognize the characteristics that distinguish nonpublic schools from public schools; and
        (3) be a recognition system that is separate from the accreditation standards required of public schools and available to nonpublic schools under section 8(a)(5) of this chapter.
    (d) This section does not prohibit a nonpublic school from seeking accreditation under section 8(a)(5) of this chapter.
    (e) The state board shall adopt rules under IC 4-22-2 to implement this section.
    Sec. 11. (a) As used in this section, "plan" refers to a strategic and continuous school improvement and achievement plan developed under IC 20-31-5.
    (b) A plan must:
        (1) conform to the requirements of IC 20-31-5; and
        (2) include a professional development program that conforms to IC 20-20-31.
    (c) The governing body may do the following for a school that participates in a plan:
        (1) Invoke a waiver of a rule adopted by the state board under IC 20-31-5-5(b).
        (2) Develop a plan for the admission of students who do not reside in the school's attendance area but have legal settlement in the school corporation.
    (d) In approving a school corporation's actions under this

section, the state board shall consider whether the governing body has done the following:
        (1) Approved a school's plan.
        (2) Demonstrated the support of the exclusive representative only for the professional development program component of the plan.
    (e) The state board may waive any statute or rule relating to curriculum or textbook selection on behalf of a school in accordance with IC 20-31-5-5.
    (f) As part of the plan, the governing body may develop and implement a policy to do the following:
        (1) Allow the transfer of a student who resides in the school's attendance area but whose parent requests that the student attend another school in the school corporation of legal settlement.
        (2) Inform parents of their rights under this section.
    (g) The state board shall adopt rules under IC 4-22-2 to implement this section.
    Sec. 12. (a) The state board shall adopt nonbinding guidelines for the selection of school sites and the construction, alteration, and repair of school buildings. The nonbinding guidelines:
        (1) must include preferred location and building practices for school corporations, including standards for enhancing health, energy efficiency, cost efficiency, and instructional efficacy; and
        (2) may include guidelines concerning minimum acreage, cost per square foot, and per student square footage.
    (b) The state board shall annually compile, in a document capable of easy revision, the:
        (1) guidelines described in subsection (a); and
        (2) rules of the:
            (A) fire prevention and building safety commission; and
            (B) state department of health;
that govern site selection and the construction, alteration, and repair of school buildings.
    (c) Before submitting completed written plans and specifications for the selection of a school building site or the construction or alteration of a school building to the state building commissioner for issuance of a design release under IC 22-15-3, a school corporation shall:
        (1) issue a public document that describes any material differences between the plans and specifications prepared by

the school corporation and the guidelines adopted under subsection (a), as determined under the guidelines adopted by the state board; and
        (2) after publishing a notice of the public hearing under IC 5-3-1, conduct a public hearing to receive public comment concerning the school corporation's plans and specifications.
After the public hearing and without conducting another public hearing under this subsection, the governing body may revise the plans and specifications or submit the plans and specifications to the state building commissioner without making changes. The school corporation shall revise the public document described in subdivision (1) to identify any changes in the plans and specifications after the public document's initial preparation.
    Sec. 13. The state board may not approve or disapprove plans and specifications for the construction, alteration, or repair of school buildings, except as necessary under the following:
        (1) The terms of a federal grant or a federal law.
        (2) IC 20-35-4-2 concerning the authorization of a special school for children with disabilities.
    Sec. 14. The state board shall do the following:
        (1) Establish the educational goals of the state, developing standards and objectives for local school corporations.
        (2) Assess the attainment of the established goals.
        (3) Assure compliance with established standards and objectives.
        (4) Make recommendations to the governor and general assembly concerning the educational needs of the state, including financial needs.
    Sec. 15. The state board shall comply with IC 20-26-15 to establish a freeway school corporation and a freeway school.
    Sec. 16. (a) The state accepts the provisions and benefits of laws enacted by the Congress of the United States that provide for aid to children with disabilities.
    (b) The state board is designated as the proper authority and may accept any federal funds appropriated to aid in the education of children with disabilities. The state board shall comply with all the requirements of:
        (1) federal law concerning any federal funds relating to special educational activities; and
        (2) any amendments to those laws or rules and regulations issued under and in conformity with those laws and not inconsistent with this chapter.


    Sec. 17. The provisions of an act of Congress entitled "An act to provide for the promotion of vocational education; to provide for cooperation with the states in the promotion of such education in agriculture and the trades and industries; to provide for cooperation with the states in the preparation of teachers of vocational subjects; and to appropriate money and regulate its expenditure," are accepted by the state as to the following:
        (1) Appropriations for the salaries of:
            (A) teachers;
            (B) supervisors; or
            (C) directors;
        of agricultural subjects.
        (2) Appropriations for salaries for teachers of trade and industrial subjects.
        (3) Appropriations for the training of teachers of vocational subjects.
    Sec. 18. (a) The treasurer of state is designated as the custodian for vocational education.
    (b) The treasurer of state shall do the following:
        (1) Receive money paid to the state from the United States treasury under the act of Congress described in section 17 of this chapter.
        (2) Pay the money described in subdivision (1), upon the warrant of the auditor of state, when the money is certified by the state board.
    Sec. 19. The state board:
        (1) is designated as the state agency to carry out the provisions of the act of Congress described in section 17 of this chapter, so far as the act relates to the cooperation of the state and federal government; and
        (2) may take all necessary steps in:
            (A) forming plans to promote education in agriculture, trades, and industries; and
            (B) forming and executing plans to prepare teachers of vocational subjects.
    Chapter 3. Department of Education
    Sec. 1. The department of education is established.
    Sec. 2. The state superintendent is the director of the department.
    Sec. 3. The state superintendent:
        (1) subject to IC 20-19-2-8(a)(1); and
        (2) with the approval of the budget agency;
may hire the personnel necessary to perform the duties of the department under this title.
    Sec. 4. The department shall:
        (1) perform the duties required by statute;
        (2) implement the policies and procedures established by the state board;
        (3) conduct analytical research to assist the state board in determining the state's educational policy;
        (4) compile statistics concerning the ethnicity and gender of students in Indiana schools, including statistics for all information that the department receives from school corporations on enrollment, number of suspensions, and number of expulsions; and
        (5) provide technical assistance to school corporations.
    Sec. 5. The department may:
        (1) exercise the powers granted by statute;
        (2) with the approval of the budget agency, employ experts and consultants to assist the department in carrying out its functions;
        (3) with the consent of other state agencies, use the services and facilities of other state agencies without reimbursements;
        (4) accept in the name of the department, for use in carrying out the functions of the department, money received by gift, grant, bequest, or otherwise;
        (5) accept voluntary and uncompensated services; and
        (6) expend funds made available to the department according to policies established by the budget agency.
    Sec. 6. (a) The department shall:
        (1) establish a program in health and physical education to encourage children in kindergarten through grade 12 to develop:
            (A) healthful living habits;
            (B) an interest in lifetime health and physical fitness; and
            (C) decision making skills in the areas of health and physical fitness;
        (2) establish the position of education consultant for health and physical education; and
        (3) hire an individual to perform the duties of education consultant for health and physical education.
    (b) The education consultant for health and physical education shall:
        (1) plan and develop curricula for health and physical

education for grades kindergarten through 12; and
        (2) perform other duties designated by the department.
    (c) The program in health and physical education must include the following:
        (1) Local school program development.
        (2) Technical and inservice training assistance for local schools.
        (3) Local school initiatives in writing curricula in the areas of health and physical education.
        (4) Cardiopulmonary resuscitation training using a training program approved by the American Heart Association or an equivalent nationally recognized training program.
    (d) The department may give grants to or enter into contracts with individuals or school corporations to carry out the purposes of the program in health and physical education.
    Sec. 7. (a) The department may not accept or distribute to school corporations grants from the federal government under Title III of P.L.103-227 (repealed), if the state superintendent determines that acceptance or distribution of grant money does at least one (1) of the following:
        (1) Authorizes an officer or employee of the federal government to mandate, direct, or control at least one (1) of the following:
            (A) The department.
            (B) A school corporation.
            (C) A school curriculum or program of instruction.
            (D) Allocation of a state or local government resource.
        (2) Requires the department, a school corporation, or a school to spend money or incur an expense not paid under Title III of P.L.103-227 (repealed).
        (3) Requires a school corporation, as a condition of participation, to increase the access of students to at least one (1) of the following:
            (A) Social services.
            (B) Health care.
            (C) Nutrition.
            (D) Services related to the services listed in clauses (A) through (C).
            (E) Child care services.
        (4) Requires a school corporation, as a condition of participation, to implement an outcome based education program.


        (5) Requires a school corporation, as a condition of participation, to adopt:
            (A) a national curriculum; or
            (B) national assessment standards.
        (6) Requires federal government certification of:
            (A) a state curriculum; or
            (B) state assessment standards.
    (b) The governing body of a school corporation that receives a grant under this section may withdraw from participation in the grant program at the following times:
        (1) At the end of a school year.
        (2) At any time during a school year, if money received for participation in the grant program is returned to the department. The amount that a school corporation must return to the department is the amount received for expenditure during the time after the school corporation has ceased to participate in the program.
    Sec. 8. The department may not approve or disapprove plans and specifications for the construction, alteration, or repair of school buildings, except as necessary under the following:
        (1) The terms of a federal grant or a federal law.
        (2) IC 20-35-4-2 concerning the authorization of a special school for children with disabilities.
    Chapter 4. Education Roundtable
    Sec. 1. As used in this chapter, "roundtable" refers to the education roundtable established by section 2 of this chapter.
    Sec. 2. The education roundtable is established.
    Sec. 3. The roundtable consists of the following members:
        (1) A number of members appointed jointly by the governor and the state superintendent. These members must be representatives of:
            (A) business and community leaders;
            (B) elementary and secondary education, including programs for exceptional learners (as defined in IC 20-31-2-6); and
            (C) higher education.
        The number of members appointed under clause (A) must be equal to the number of members appointed under clauses (B) and (C).
        (2) Two (2) members appointed by the president pro tempore of the senate from different political parties.
        (3) Two (2) members appointed by the speaker of the house of

representatives from different political parties.
    Sec. 4. (a) A member of the roundtable is not entitled to a salary per diem.
    (b) A member of the roundtable is entitled to reimbursement for traveling expenses and other expenses actually incurred in connection with the member's duties, as provided in the state travel policies and procedures established by the Indiana department of administration and approved by the budget agency.
    Sec. 5. (a) The governor and the state superintendent shall jointly serve as cochairpersons of the roundtable. The roundtable shall meet upon the call of the cochairpersons.
    (b) A quorum of the roundtable must be present to conduct business. A quorum consists of a majority of the voting members appointed to the roundtable. The roundtable may not take an official action unless the official action has been approved by at least a majority of the voting members appointed to serve on the roundtable.
    Sec. 6. The roundtable is a permanent body and working group.
    Sec. 7. (a) The roundtable shall provide recommendations on subjects related to education to the following:
        (1) The governor.
        (2) The state superintendent.
        (3) The general assembly.
        (4) The state board.
    (b) The recommendations to the general assembly must be in an electronic format under IC 5-14-6.
    Sec. 8. (a) Before providing a recommendation under section 7 of this chapter, the roundtable shall prepare an analysis of the fiscal impact that the recommendation will have on the state, political subdivisions, and private schools affected by the recommendation. The analysis must be submitted with the recommendation under section 7 of this chapter.
    (b) If the roundtable provides a recommendation under section 7 of this chapter and the fiscal impact analysis prepared under subsection (a) indicates that the impact of the recommendation will be at least five hundred thousand dollars ($500,000), the roundtable shall submit a copy of the recommendation and the fiscal impact analysis prepared under subsection (a) to the legislative services agency for review. This recommendation must be in an electronic format under IC 5-14-6. Not more than forty-five (45) days after receiving a copy of the recommendation and fiscal impact analysis, the legislative services agency shall

prepare a fiscal analysis concerning the effect that compliance with the recommendation will have on:
        (1) the state;
        (2) political subdivisions; and
        (3) nonpublic schools affected by the proposed recommendation.
The fiscal analysis must contain an estimate of the direct fiscal impact of the recommendation and a determination concerning the extent to which the recommendation creates an unfunded mandate on the state, a political subdivision, or a nonpublic school affected by the proposed recommendation. The fiscal analysis is a public document. The legislative services agency shall make the fiscal analysis available to interested parties upon request. The roundtable shall provide the legislative services agency with the information necessary to prepare the fiscal analysis. The legislative services agency may also receive and consider applicable information from the entities affected by the recommendation in preparation of the fiscal analysis. The legislative services agency shall provide copies of its fiscal analysis to each of the persons described in section 7 of this chapter.
    Sec. 9. The roundtable shall make recommendations to the state board for improving the academic standards under IC 20-31-3.
    Sec. 10. The roundtable shall review and recommend to the state board for the state board's approval the following:
        (1) The academic standards under IC 20-31-3, IC 20-32-4, IC 20-32-5, and IC 20-32-6 for all grade levels from kindergarten through grade 12.
        (2) The content and format of the ISTEP program, including the following:
            (A) The graduation examination.
            (B) The passing scores required at the various grade levels tested under the ISTEP program.
    Sec. 11. In making recommendations under section 10 of this chapter, the roundtable shall consider:
        (1) a variety of available national and international assessments and tests;
        (2) the development of an assessment or test unique to Indiana; and
        (3) any combination of assessments or tests described under subdivisions (1) and (2).
    Sec. 12. In making recommendations under section 10 of this chapter, the roundtable shall recommend to the state board only

state tests that when appropriate:
        (1) present the content of each test in an interdisciplinary manner; and
        (2) provide each student with the opportunity to meet the academic standards in an applied manner.
    Sec. 13. The state board may adopt rules under IC 4-22-2 to implement this chapter.
    SECTION 4. IC 20-20 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]:
    ARTICLE 20. PROGRAMS ADMINISTERED BY THE STATE
    Chapter 1. Educational Service Centers
    Sec. 1. As used in this chapter, "board" refers to the local governing board of an educational service center.
    Sec. 2. (a) As used in this chapter, "educational service center" means an extended agency of school corporations that:
        (1) operates under rules established by the state board;
        (2) is the administrative and operational unit that serves a definitive geographical boundary; and
        (3) allows school corporations to voluntarily cooperate and share programs and services that the school corporations cannot individually provide but collectively may implement.
    (b) Programs and services collectively implemented through an educational service center may include, but are not limited to, the following:
        (1) Curriculum development.
        (2) Pupil personnel and special education services.
        (3) In-service education.
        (4) State-federal liaison services.
        (5) Instructional materials and multimedia services.
        (6) Vocational and career education.
        (7) Purchasing and financial management.
        (8) Needs assessment.
        (9) Computer use.
        (10) Research and development.
    Sec. 3. The state board may provide for the establishment of and procedures for the operation of educational service centers.
    Sec. 4. (a) The state board shall do the following:
        (1) Adopt a comprehensive plan to implement this chapter.
        (2) Determine the areas in Indiana that will be served by an educational service center.


    (b) In determining the geographic area to be served by an educational service center, the state board shall consider the following:
        (1) Physical factors.
        (2) Socio-economic factors.
        (3) Educational factors.
        (4) Existing cooperative efforts and agreements.
    Sec. 5. An educational service center must be established under rules adopted by the state board to develop, provide, and make available to participating schools those services requested by the participating school corporations and approved by the state board.
    Sec. 6. Educational service centers shall be located throughout Indiana to allow each school corporation to have an opportunity to:
        (1) be served by; and
        (2) participate in;
an approved center on a voluntary basis by resolution of the governing body.
    Sec. 7. An educational service center shall be governed in its local administration by a board selected by an assembly comprised of the superintendent or the superintendent's designee from each participating school corporation.
    Sec. 8. (a) The state board shall adopt uniform rules to provide for the local selection, appointment, and continuity of membership for boards.
    (b) Vacancies on a board shall be filled by appointment by the remaining members of the board.
    (c) Members of a board serve without compensation.
    Sec. 9. A board may employ the following:
        (1) An executive director for the educational service center.
        (2) Other personnel the board considers necessary to:
            (A) carry out the functions of the educational service center; and
            (B) do and perform all things the board considers proper for successful operation of the center.
    Sec. 10. (a) The state board shall provide for the selection of an advisory council to each board. The state board shall provide for the representation of:
        (1) teachers;
        (2) elementary principals;
        (3) secondary principals;
        (4) members of the governing body; and
        (5) parents of students;
of the school corporations that are within the geographic area served by the educational service center.
    (b) The advisory council shall make recommendations to the board on budgetary and program matters.
    Sec. 11. (a) Any funds, including donated funds and funds from federal or other local sources, shall be used to pay for the costs of establishing or operating an educational service center.
    (b) An educational service center may administer programs and funds from any of the sources described in subsection (a). All activities funded from federal sources must follow all applicable federal guidelines, rules, and regulations.
    Sec. 12. This chapter does not prohibit an educational service center from receiving and using matching funds from federal sources in any amount for which the educational service center may be eligible.
    Chapter 2. Principal Leadership Academy
    Sec. 1. As used in this chapter, "academy" refers to the principal leadership academy established by section 3 of this chapter.
    Sec. 2. As used in this chapter, "advisory board" refers to the advisory board for the principal leadership academy established by this chapter.
    Sec. 3. The principal leadership academy is established within the department to achieve excellence in teacher and student performance by strengthening leadership and management skills of practicing Indiana public school principals.
    Sec. 4. (a) The state superintendent shall:
        (1) appoint a full-time director to administer the academy;
        (2) employ staff necessary to implement this chapter;
        (3) appoint members of the advisory board; and
        (4) submit to the general assembly an annual report before July 1 of each year.
    (b) The annual report of the state superintendent must be in an electronic format under IC 5-14-6 and must include the following:
        (1) A summary of the activities of the academy.
        (2) Data on the number of persons trained.
        (3) An analysis of the extent to which the purposes of the academy have been accomplished.
        (4) A proposal for a program and budget for the two (2) years following the year that is the subject of the report.
    Sec. 5. (a) There is established an advisory board for the

academy to advise and assist the director appointed under section 4 of this chapter.
    (b) The advisory board consists of nine (9) members appointed by the state superintendent. Each of the following groups must be represented by at least one (1) member of the advisory board:
        (1) Practicing public school principals.
        (2) Members of the general assembly.
        (3) Experts in administration, supervision, curriculum development, or evaluation who are members of the faculty of a state supported university.
        (4) Practicing school superintendents.
        (5) Practicing public school teachers.
        (6) Members of the business or industry community.
        (7) Parents of public school age children.
    (c) The advisory board shall:
        (1) annually elect a chairperson;
        (2) advise the director about the curriculum of the academy;
        (3) review the plan developed by the director under section 6 of this chapter;
        (4) approve an evaluation plan for the academy;
        (5) review the director's plan for continuing education;
        (6) review the academy budget and make recommendations to the director;
        (7) set criteria for the selection of academy participants;
        (8) review the operation of the academy and make recommendations to the director;
        (9) assist the director in compiling an annual report for submission to the state superintendent;
        (10) consider coordinating the programs and curriculum offered at the academy with the programs and curriculum required in principal certification programs offered at institutions of higher education in Indiana; and
        (11) complete other tasks requested of the advisory board by the state superintendent.
    (d) Each member of the advisory board serves a four (4) year term beginning on May 1 in the year the member is appointed.
    (e) The state superintendent shall fill a vacancy on the advisory board:
        (1) for the unexpired part of the term; and
        (2) in a manner that preserves the composition of the advisory board under subsection (b).
    (f) Each member of the advisory board who is not a member of

the general assembly is not entitled to the minimum salary per diem provided by IC 4-10-11-2.1(b). The member is, however, entitled to reimbursement for traveling expenses and other expenses actually incurred in connection with the member's duties, as provided in the state travel policies and procedures established by the Indiana department of administration and approved by the budget agency.
    (g) Each member of the advisory board who is a member of the general assembly is entitled to receive the same per diem, mileage, and travel allowances paid to members of the general assembly serving on interim study committees established by the legislative council.
    Sec. 6. (a) The director of the academy shall, with staff support, develop a plan to accomplish the goals of the academy. The plan must be approved by the advisory board and must include procedures to teach principals the following:
        (1) How to develop the leadership skills and management techniques necessary for providing quality education in Indiana schools.
        (2) How to improve teacher and student performance.
        (3) How to strengthen communication and leadership skills required for the establishment of a broad based support for public education.
        (4) Management skills for use in improving curriculum and instruction.
        (5) How to improve the school environment.
    (b) The director of the academy shall, with staff support, and subject to approval by the advisory board, develop a plan for continuing education by the academy of public school principals who have completed initial training at the academy.
    Sec. 7. To be eligible for admission to the academy, a participant must be a practicing public school principal for a public school located in Indiana. Admission preference must be given to those school principals who have at least three (3) years of administrative experience in Indiana public schools and intend to continue as public school principals.
    Chapter 3. Teacher Referral System
    Sec. 1. As used in this chapter, "referral system" refers to the teacher employment opportunities referral system established by section 2 of this chapter.
    Sec. 2. The department shall establish and keep current a computerized teacher employment opportunities referral system.


    Sec. 3. The referral system must:
        (1) be capable of identifying the available public school teaching positions within Indiana;
        (2) provide the pertinent information on individuals who are seeking employment as teachers; and
        (3) be accessible to school corporations, teachers, prospective teachers, and state educational institutions.
    Sec. 4. The department shall disseminate the necessary information to school corporations and state educational institutions to provide awareness of the availability of the referral system to the pertinent parties.
    Chapter 4. Ambassador for Education
    Sec. 1. The following are the goals of the ambassador for education program:
        (1) Enhance the stature of teachers and the teaching profession.
        (2) Inspire and attract talented young people to become teachers.
        (3) Promote the teaching profession within community and business groups.
        (4) Support the activities of the Future Teachers of America clubs.
        (5) Represent Indiana teachers at business, education, and teacher leadership conferences and meetings.
        (6) Reward the teacher of the year for the teacher's outstanding contributions to the teaching profession.
        (7) Reward the teacher of the year for the teacher's contributions to the teacher's classroom and school.
    Sec. 2. As used in this chapter, "ambassador" refers to the ambassador for education established by section 4 of this chapter.
    Sec. 3. As used in this chapter, "school" means a school corporation or an accredited nonpublic school.
    Sec. 4. The position of ambassador for education is established to act as an education liaison to Indiana schools.
    Sec. 5. A teacher in a school who:
        (1) is selected by the state superintendent as teacher of the year; and
        (2) agrees to be ambassador;
is ambassador for a one (1) year term beginning July 1 after selection as teacher of the year and ending the following June 30.
    Sec. 6. (a) The school where an ambassador is regularly employed shall do the following:
        (1) Grant the ambassador a one (1) year professional leave to serve as ambassador during the ambassador's term.
        (2) Allow the ambassador to return to the school from the professional leave:
            (A) to the same or a comparable position as the ambassador held before the professional leave; and
            (B) without loss of accrued benefits or seniority.
        (3) Continue to provide the ambassador all benefits of employment with the school other than salary.
    (b) The department shall reimburse a school for the cost of benefits provided by the school to an ambassador under subsection (a)(3).
    Sec. 7. An ambassador may elect to serve the one (1) year professional leave at:
        (1) an Indiana institution of higher education; or
        (2) the department.
    Sec. 8. If an ambassador elects to serve a one (1) year professional leave with the department, the following apply:
        (1) The state coordinator of the ambassador for education program, as designated by the state superintendent, shall establish the ambassador's duties.
        (2) The ambassador is entitled to receive from the department the following:
            (A) A salary in place of compensation from the school where the ambassador is regularly employed that equals the salary that the ambassador, if not serving as ambassador, would receive during the school year of the ambassador's term from the school where the ambassador is regularly employed.
            (B) Actual expenses of the ambassador incurred as a result of the performance of duties under this chapter.
    Sec. 9. If an ambassador elects to serve a one (1) year professional leave with an Indiana institution of higher education, the following apply:
        (1) The dean of the institution's school of education or the equivalent officer shall establish the ambassador's duties.
        (2) The ambassador is entitled to receive from the institution the amount of compensation that the institution offers the ambassador.
        (3) The ambassador is entitled to receive from the department compensation in an amount that when added to the amount provided under subdivision (2) equals the salary that the

ambassador, if not serving as ambassador, would receive during the school year of the ambassador's term from the school where the ambassador is regularly employed.
    Sec. 10. The ambassador's duties must match the relative skills and education background of the ambassador and reflect the goals of the ambassador for education program. However, duties may include the following:
        (1) Providing professional development seminars and workshops in the subject matter areas in which the ambassador has expertise.
        (2) Accompanying the state superintendent in the exercise of the state superintendent's duties throughout Indiana.
    Chapter 5. Textbook Adoption
    Sec. 1. (a) Subject to section 3 of this chapter, the state board shall adopt textbooks and enter into contracts with publishers to furnish the textbooks at fixed prices.
    (b) For each subject for which credit is given in the public schools and for each grade, the state board shall adopt as many textbooks as the state board finds satisfactory.
    (c) In addition to adopting textbooks under this chapter, the state board may recommend to school corporations as many as seven (7) textbooks from the list of adopted textbooks that the state board finds most satisfactory.
    (d) The state board shall make regular adoptions and enter into contracts each year for every subject in one (1) subject classification under section 6 of this chapter. The term of a contract is six (6) years.
    (e) The state board in a call for bids may exempt a certain textbook category or categories in nonrequired subject matter areas from being bid.
    Sec. 2. (a) If:
        (1) a textbook was:
            (A) adopted by the state board at the state board's last regular adoption of textbooks for that subject; or
            (B) adopted by the state board under section 7 or 8 of this chapter within the last six (6) years; and
        (2) the publisher does not submit a bid proposal for that textbook at the next regular adoption of textbooks for that subject;
a school corporation may continue to use that textbook unless the state board finds that the textbook is no longer satisfactory.
    (b) This section does not require a publisher to submit a bid or

enter into a contract for the continued sale of a textbook.
    (c) A textbook whose continued use is authorized by this section may be used for a maximum of six (6) years after the expiration of the textbook's original adoption.
    Sec. 3. The state board may adopt only textbooks that:
        (1) have been recommended by the advisory committee on textbook adoption established by IC 20-19-2-3; or
        (2) are approved by seven (7) members of the board.
    Sec. 4. In adopting textbooks, the state board shall give priority to textbooks written at a reading level appropriate to the grade for which the textbooks will be used.
    Sec. 5. (a) The following classifications encompass all subjects in all grades of the public schools for which credit is given:
        (1) Language arts/English, spelling, and literature.
        (2) Social studies.
        (3) Mathematics.
        (4) Science and health education.
        (5) Miscellaneous.
        (6) Language arts/reading and handwriting.
        (7) Foreign languages.
    (b) If the classification for a textbook subject is unclear, the classification shall be determined by the rules of the state board.
    Sec. 6. (a) In 2008 and every sixth year thereafter, the state board shall adopt and contract for textbooks for each subject under the classification of social studies.
    (b) In 2009 and every sixth year thereafter, the state board shall adopt and contract for textbooks for each subject under the classification of mathematics.
    (c) In 2010 and every sixth year thereafter, the state board shall adopt and contract for textbooks for each subject under the classification of science and health education.
    (d) In 2005 and every sixth year thereafter, the state board shall adopt and contract for textbooks for each subject under the classification of miscellaneous.
    (e) In 2006 and every sixth year thereafter, the state board shall adopt and contract for textbooks for each subject under the classification of language arts/reading and handwriting.
    (f) In 2007 and every sixth year thereafter, the state board shall adopt and contract for textbooks for each subject under the following classifications:
        (1) Language arts/English, spelling, and literature.
        (2) Foreign languages.


    Sec. 7. (a) The state board may make additional adoptions as new textbooks become available or as waivers are granted under IC 20-26-12-28.
    (b) A contract for a textbook that was adopted after a regular adoption expires at the same time as a contract that was entered into at a regular adoption of textbooks in the subject in which the textbook is classified under section 5 of this chapter.
    Sec. 8. If a new subject is to be taught in any grade, the state board shall, at its next adoption meeting, adopt and contract for textbooks for that subject and grade. A contract entered into under this section may extend only for the period required for its expiration to coincide with the expiration of contracts for textbooks for other subjects in the same classification.
    Sec. 9. The state board shall hold a public hearing each year before establishing adoption categories for an adoption year to solicit comments from the public about the determination of adoption categories and the evaluation and selection of textbook materials submitted in the categories.
    Sec. 10. (a) The state superintendent shall issue a press release to the news media about the availability of the textbooks submitted for adoption for public inspection. The press release must:
        (1) state the dates, times, and places where the textbooks will be available for inspection; and
        (2) encourage the public to inspect the submitted textbooks and submit written comments to the state board.
The state superintendent shall mail the press release to the superintendent of each school corporation to make available to interested citizens.
    (b) The state board shall make the textbooks submitted for adoption available for public inspection during regular business hours for at least six (6) weeks, beginning on or before September 15 of each year, at a textbook review center in each of the nine (9) education service center regions established by the state board under IC 20-20-1.
    Sec. 11. The state board shall conduct public hearings as often as necessary to receive and consider public testimony concerning the submitted textbooks before making a final adoption.
    Sec. 12. Thirty (30) days before a meeting to adopt textbooks and contracts, the state board shall publish a notice of the meeting in two (2) daily newspapers, each of which:
        (1) has paid circulation of at least eighty-five thousand (85,000); and
        (2) is published in Indiana.
The notice must include a complete list of all subjects and grades for which textbooks are to be adopted at the meeting.
    Sec. 13. The state board shall accept sealed bids from publishers who submit textbooks for adoption under this chapter. A bid must state the exact price at which the publisher furnishes each textbook. Specimen copies of every submitted textbook and an affidavit that states the following must accompany each bid:
        (1) The publisher is not connected with any other publisher bidding at the same time.
        (2) The publisher does not have a pecuniary interest in any other publisher bidding at the same time.
        (3) The publisher is not a party to any agreement that would deny the benefits of competition to the people of Indiana.
If a submitted textbook is a revised version of a previously adopted textbook, the bidder shall state that fact in the affidavit and shall indicate if the revised version varies substantively from the previously adopted version.
    Sec. 14. The state board may reject one (1) or more bids. When a bid proposes more than one (1) textbook, the state board may accept the bid in part or in whole.
    Sec. 15. (a) The state board shall evaluate all textbooks submitted for approval based on the following criteria:
        (1) Amount and quality of material in the textbook.
        (2) Correlation between the subject matter of the textbook and the description adopted by the state board.
        (3) Style of binding.
        (4) Mechanical execution of the textbook.
        (5) Price.
    (b) The state board shall select educators and other individuals to serve as textbook evaluators.
    Sec. 16. The state board may not approve a textbook that contains anything of a partisan or sectarian character.
    Sec. 17. The letting of contracts for textbooks shall be competitive. A person may bid to furnish any textbook regardless of whether the textbook is used in Indiana schools at the time of bidding.
    Sec. 18. The state superintendent shall notify the governing bodies of all school corporations of all textbook adoptions immediately after adoption.
    Sec. 19. A publisher that has a textbook adopted must post a five thousand dollar ($5,000) bond to the acceptance and satisfaction of

the governor. The bond must be conditioned on the publisher's adequately and properly furnishing all adopted textbooks in the manner prescribed by the state board and at the quoted prices. If a publisher fails to adequately and properly furnish an adopted textbook, the state board may cancel the adoption of the textbook.
    Sec. 20. (a) The state board and publishers of adopted textbooks shall enter into contracts approved by the attorney general. A contract must specify terms, specifications, price, and other necessary matters. If a publisher of an adopted textbook sells the same book elsewhere at a lower price than in Indiana, the publisher shall make that lower price apply to all subsequent sales in Indiana. On refusal by a publisher to make this lower price available, the governor shall investigate to verify that the publisher is selling the same book at a lower price and under similar conditions elsewhere than in Indiana. If the governor's investigation verifies that such a sale has occurred, the governor shall cancel the adoption of the textbook involved.
    (b) A contract entered into under this chapter must provide that the publisher agrees to grant a license to the state board to allow for the reproduction of adopted textbooks in:
        (1) large type;
        (2) braille; and
        (3) an audio format.
    (c) Subject to subsection (e), a contract entered into under this chapter for a textbook must require a publisher to furnish, not more than sixty (60) days after a request is submitted by the board to the publisher, electronic formats for literary subject areas in:
        (1) the American Standard Code of Information Interchange (or ASCII); or
        (2) other electronic formats as determined by the board;
from which braille versions of the textbooks can be produced.
    (d) Subject to subsection (e), if braille specialty code translation computer software is available, each contract under this chapter must require that a publisher furnish electronic formats in:
        (1) the American Standard Code of Information Interchange (ASCII); or
        (2) other electronic formats as determined by the board;
for nonliterary subjects as determined by the board in areas such as natural and computer science, mathematics, and music.
    (e) The board may waive the requirements described in subsections (c) and (d) if a publisher:
        (1) offers a braille version of a specific textbook title as a

commercial product;
        (2) offers the braille version described in subdivision (1) at a price that does not exceed standard braille costs; and
        (3) agrees to deliver the braille textbook not more than forty-five (45) days after the board submits a request to the publisher in this regard.
    Sec. 21. Adoptions and contracts made under this chapter become effective on July 1 of the year following the year in which the contract or adoption was made.
    Sec. 22. A contract made under this chapter must provide that:
        (1) the state is not liable to a contracting publisher for any sum; and
        (2) the publisher receives compensation solely from the sale of textbooks under IC 20-26-12.
    Sec. 23. (a) A textbook contract made under this chapter must provide that the contracting publisher may agree to furnish a sufficient number of textbooks selected under IC 20-26-12-24 to:
        (1) a requesting school corporation; or
        (2) one (1) or more dealers designated by a requesting school corporation.
    (b) A contract described in subsection (a) must contain the following terms:
        (1) Textbooks paid for in cash within sixty (60) days after delivery must be furnished at the net wholesale price of the textbooks plus transportation costs.
        (2) Textbooks purchased on a time basis must be furnished at the net wholesale price plus transportation costs plus interest on the unpaid balance, subject to any restrictions in this chapter on time basis purchases.
    Sec. 24. A member of the state board or the advisory committee on textbook adoption established by IC 20-19-2-3 shall disclose any financial interest that the member has in any textbook considered for adoption.
    Sec. 25. The state board may adopt rules under IC 4-22-2 to assist in the administration of this chapter.
    Chapter 6. General Educational Development Diploma Program
    Sec. 1. The department may grant a state of Indiana general educational development (GED) diploma to an individual who:
        (1) is at least seventeen (17) years of age;
        (2) is not subject to compulsory school attendance; and
        (3) achieves satisfactory high school level scores on the general educational development (GED) test or any other

properly validated tests of comparable difficulty designated by the board.
    Sec. 2. The department is responsible for the administration of the testing program provided in this chapter.
    Sec. 3. (a) The state board shall adopt rules under IC 4-22-2 to provide for the implementation and administration of this chapter.
    (b) The rules may include the following provisions:
        (1) Qualifications of applicants.
        (2) Acceptable tests.
        (3) Acceptable test scores.
        (4) Criteria for retesting.
    Sec. 4. A high school equivalency certificate issued under this chapter before July 1, 1995, is equivalent to a state of Indiana general educational development (GED) diploma.
    Chapter 7. High School Diploma Program for Eligible Veterans
    Sec. 1. As used in this chapter, "department of veterans' affairs" refers to the Indiana department of veterans' affairs established by IC 10-17-1-2.
    Sec. 2. As used in this chapter, "diploma" refers to a high school diploma.
    Sec. 3. As used in this chapter, "eligible veteran" refers to an individual who has the following qualifications:
        (1) Served as a member of the armed forces of the United States at any time during at least one (1) of the following periods:
            (A) Beginning April 6, 1917, and ending November 11, 1918 (World War I).
            (B) Beginning December 7, 1941, and ending December 31, 1946 (World War II).
        (2) Before the military service described in subdivision (1):
            (A) attended a public or nonpublic high school in Indiana; and
            (B) was a student in good standing at the high school described in clause (A), to the satisfaction of the department of veterans' affairs.
        (3) Did not graduate or receive a diploma because of leaving the high school described in subdivision (2) for the military service described in subdivision (1).
        (4) Was honorably discharged from the armed forces of the United States.
    Sec. 4. As used in this chapter, "program" refers to the high school diploma program for eligible veterans established by section

6 of this chapter.
    Sec. 5. As used in this chapter, "school corporation" includes a successor school corporation serving the area where a high school that no longer exists was once located.
    Sec. 6. The high school diploma program for eligible veterans is established to provide for the issuance of high school diplomas to certain veterans.
    Sec. 7. (a) The department and the department of veterans' affairs shall jointly design a form for the application for issuance of a diploma under the program.
    (b) The application form must require at least the following information about an eligible veteran:
        (1) Personal identification information.
        (2) Military service information, including a copy of the eligible veteran's honorable discharge.
        (3) High school information, including the following:
            (A) Name and address, including county, of the last high school attended.
            (B) Whether the high school was a public or nonpublic school.
            (C) Years attended.
            (D) Year of leaving high school to begin military service.
            (E) Year in which the veteran would have graduated if the veteran had not left high school to begin military service.
        (4) If the high school attended was a public school, whether the veteran prefers receiving a diploma issued by:
            (A) the state board; or
            (B) the governing body of the school corporation governing the high school.
    Sec. 8. The department of veterans' affairs shall do the following for individuals that the department of veterans' affairs has reason to believe may be eligible to apply for a diploma under the program:
        (1) Give notice of the program.
        (2) Describe the application procedure.
        (3) Furnish an application form.
    Sec. 9. The following individuals may apply for the issuance of a diploma to an eligible veteran under the program:
        (1) An eligible veteran, including an eligible veteran who has received a general educational development (GED) diploma issued under IC 20-20-6 or a similar diploma.
        (2) An individual who is:


            (A) the surviving spouse of; or
            (B) otherwise related to;
        an eligible veteran who is deceased.
    Sec. 10. An applicant for a diploma under the program must submit a completed application form to the department of veterans' affairs.
    Sec. 11. Upon receipt of an application, the department of veterans' affairs shall do the following:
        (1) Verify the accuracy of the information in the application, in consultation with the department, if necessary.
        (2) Forward the verified application to the department.
    Sec. 12. Upon receipt of a verified application, the department shall do the following:
        (1) If the applicant:
            (A) expresses a preference in the application to receive a diploma issued by the state board; or
            (B) attended a nonpublic high school before leaving high school for military service;
        the department shall present a diploma issued by the state board.
        (2) If the applicant expresses a preference for receiving a diploma from the governing body of the school corporation containing the public high school that the eligible veteran left for military service, the department shall direct the governing body of the affected school corporation to issue and present the diploma.
    Sec. 13. (a) The department and governing bodies are encouraged but are not required to hold a ceremony to present a diploma that is issued under the program.
    (b) Upon request of a governing body, the department, in cooperation with the department of veterans' affairs, shall assist the governing body to develop a variety of formats for appropriate ceremonies at which to award diplomas under the program.
    Sec. 14. (a) The state board shall design a unique commemorative diploma for the board to issue to eligible veterans who:
        (1) attended a public high school and express in the application a preference for receiving a diploma that the state board issues; or
        (2) attended a nonpublic high school.
    (b) The state board shall design a unique commemorative diploma that a governing body may choose to issue under the

program.
    Sec. 15. (a) A governing body may design a unique commemorative diploma for the governing body to issue under the program.
    (b) A governing body that issues a diploma under the program shall issue one (1) of the following types of diplomas:
        (1) The diploma described in subsection (a).
        (2) The diploma designed by the state board under section 14(b) of this chapter.
        (3) The same diploma that the governing body issues to current graduates.
    Sec. 16. The department and the department of veterans' affairs shall work cooperatively to jointly administer this chapter.
    Sec. 17. A fee may not be charged to process an application or to award a diploma under this chapter.
    Sec. 18. The department and the department of veterans' affairs may adopt rules under IC 4-22-2 to implement this chapter.
    Chapter 8. School Corporation Annual Performance Report
    Sec. 1. As used in this chapter, "benchmark" refers to a benchmark established under this chapter.
    Sec. 2. As used in this chapter, "report" refers to the school corporation annual performance report required by this chapter.
    Sec. 3. (a) Not earlier than January 15 or later than January 31 of each year, the governing body of a school corporation shall publish an annual performance report of the school corporation, in compliance with the procedures identified in section 7 of this chapter. The report must be published one (1) time annually under IC 5-3-1.
    (b) The department shall make each school corporation's report available on the department's Internet web site. The governing body of a school corporation may make the school corporation's report available on the school corporation's Internet web site.
    (c) The governing body of a school corporation shall provide a copy of the report to a person who requests a copy. The governing body may not charge a fee for providing the copy.
    Sec. 4. Not later than sixty (60) days after the publication of the report, the governing body of a school corporation may conduct a public hearing at a location within the school corporation to present and discuss the report. The governing body may conduct the meeting in conjunction with a regular meeting of the governing body.
    Sec. 5. A school corporation shall provide a copy of the report

to the department.
    Sec. 6. A report must contain the following:
        (1) The information listed in section 8 of this chapter for each of the preceding three (3) years.
        (2) Additional components determined under section 7(4) of this chapter.
        (3) Additional information or explanation that the governing body wishes to include, including the following:
            (A) Results of assessments of students under programs other than the ISTEP program that a school corporation uses to determine if students are meeting or exceeding academic standards in grades that are not tested under the ISTEP program.
            (B) The number and types of staff professional development programs.
            (C) The number and types of partnerships with the community, business, or higher education.
            (D) Levels of parental participation.
    Sec. 7. The state superintendent and the state board, in consultation with school corporations, educational organizations, appropriate state agencies, and other organizations and individuals having an interest in education, shall develop and periodically revise the following for the benchmarks and indicators of performance under section 8 of this chapter and the additional components of the performance report:
        (1) Reporting procedures, including the following:
            (A) A determination of the information that a school corporation must compile and the information that the department must compile.
            (B) A determination of the information required on a school by school basis and the information required on a school corporation basis.
            (C) A common format suitable for publication, including tables, graphics, and explanatory text.
        (2) Operational definitions.
        (3) Standards for implementation.
        (4) Additional components for the report that may be benchmarks, indicators of performance, or other information.
    Sec. 8. The report must include the following information:
        (1) Student enrollment.
        (2) Graduation rate (as defined in IC 20-26-13-6).
        (3) Attendance rate.


        (4) The following test scores, including the number and percentage of students meeting academic standards:
            (A) ISTEP program test scores.
            (B) Scores for assessments under IC 20-32-5-21, if appropriate.
            (C) For a freeway school, scores on a locally adopted assessment program, if appropriate.
        (5) Average class size.
        (6) The number and percentage of students in the following groups or programs:
            (A) Alternative education, if offered.
            (B) Vocational education.
            (C) Special education.
            (D) Gifted or talented, if offered.
            (E) Remediation.
            (F) Limited English language proficiency.
            (G) Students receiving free or reduced price lunch under the national school lunch program.
        (7) Advanced placement, including the following:
            (A) For advanced placement tests, the percentage of students:
                (i) scoring three (3), four (4), and five (5); and
                (ii) taking the test.
            (B) For the Scholastic Aptitude Test:
                (i) test scores for all students taking the test;
                (ii) test scores for students completing the academic honors diploma program; and
                (iii) the percentage of students taking the test.
        (8) Course completion, including the number and percentage of students completing the following programs:
            (A) Academic honors diploma.
            (B) Core 40 curriculum.
            (C) Vocational programs.
        (9) The percentage of grade 8 students enrolled in algebra I.
        (10) The percentage of graduates who pursue higher education.
        (11) School safety, including the number of students receiving suspension or expulsion for the possession of alcohol, drugs, or weapons.
        (12) Financial information and various school cost factors, including the following:
            (A) Expenditures per pupil.
            (B) Average teacher salary.
            (C) Remediation funding.
        (13) Technology accessibility and use of technology in instruction.
        (14) Interdistrict and intradistrict student mobility rates, if that information is available.
        (15) The number and percentage of each of the following within the school corporation:
            (A) Teachers who are certificated employees (as defined in IC 20-29-2-4).
            (B) Teachers who teach the subject area for which the teacher is certified and holds a license.
            (C) Teachers with national board certification.
        (16) The percentage of grade 3 students reading at grade 3 level.
        (17) The number of students expelled, including the number participating in other recognized education programs during their expulsion.
        (18) Chronic absenteeism, which includes the number of students who have been absent more than ten (10) days from school within a school year without being excused.
        (19) Other indicators of performance as recommended by the education roundtable under IC 20-19-4.
    Sec. 9. The department shall annually produce and distribute in paper and electronic formats a compiled report that includes the reports of all school corporations.
    Chapter 9. School Grant Writing and Fund Raising Assistance Program
    Sec. 1. As used in this chapter, "program" refers to the school grant writing and fund raising assistance program established by section 2 of this chapter.
    Sec. 2. The school grant writing and fund raising assistance program is established to do the following:
        (1) Identify potential sources of funds for educational purposes for which a school corporation or a school may qualify, including federal programs and private sources.
        (2) Disseminate information concerning funds identified under subdivision (1) to school corporations and schools.
        (3) Assist school corporations and schools in applying for funds identified under subdivision (1).
    Sec. 3. The department shall administer the program using funds received under IC 9-18-31-6(2).
    Chapter 10. Technology Preparation Task Force
    Sec. 1. As used in this chapter, "task force" refers to the technology preparation task force established by section 2 of this chapter.
    Sec. 2. (a) The technology preparation task force is established to design and approve:
        (1) technology preparation curriculum models; and
        (2) teacher and staff training to implement the technology preparation models.
    (b) The:
        (1) state superintendent;
        (2) commissioner of workforce development; and
        (3) executive officer of the commission for higher education;
shall each appoint three (3) members to the task force. The members appointed to the task force must include representatives of school corporations and state educational institutions.
    Sec. 3. (a) The curriculum models developed by the task force must:
        (1) be performance based;
        (2) provide a student with:
            (A) the skills necessary to gain employment upon graduation from high school; and
            (B) the subject or skills areas required by a state educational institution (as defined in IC 20-12-0.5-1) to gain admittance into the respective state educational institution;
        upon the satisfactory fulfillment of the curriculum;
        (3) relate to a broad scope of occupational opportunities;
        (4) include math, science, and English/language arts courses taught through practical application and designed to meet graduation requirements for those subjects;
        (5) be designed to include secondary and postsecondary sequence models; and
        (6) allow for dual credit, advanced study, and cooperative agreements.
    (b) The task force shall identify certain occupations for secondary and postsecondary articulation curriculum agreements in cooperation with the department of workforce development.
    Sec. 4. (a) The department shall require all school corporations to make available to the school corporation's high school students the technology preparation curriculum.
    (b) The state board shall implement teacher and staff training

for the technology preparation curriculum.
    (c) This chapter does not eliminate the approved industrial arts/technology education curriculum adopted by the state board by rule in effect on July 1, 1990.
    Sec. 5. Expenditure for equipment necessary to implement this chapter by a school corporation may be paid for:
        (1) through technology loans from the common school fund; or
        (2) from the school corporation's capital projects fund.
    Sec. 6. The state board shall adopt rules under IC 4-22-2 to implement this chapter.
    Chapter 11. Research and Development Program
    Sec. 1. As used in this chapter, "program" refers to the research and development program established by section 2 of this chapter.
    Sec. 2. (a) The research and development program is established to fund certain programs, projects, studies, or other education initiatives undertaken or authorized to be undertaken by the department.
    (b) The department shall implement the program.
    (c) Unexpended money appropriated to the department for use in implementing the program under this chapter at the end of a state fiscal year does not revert to the state general fund but remains available to the department for its continued use under this chapter.
    Sec. 3. (a) The types of initiatives for which money appropriated to the program may be used include the following:
        (1) Conducting feasibility studies concerning the following:
            (A) Mandating full-day or half-day kindergarten programs.
            (B) Choice of enrollment programs.
            (C) Establishing magnet schools.
        (2) An evaluation of P.L.390-1987(ss).
        (3) Exploring different or expanded testing methods.
        (4) An evaluation of the primetime program under IC 21-1-30.
        (5) Administering pilot programs concerning school academic readiness factors of students in kindergarten and grades 1 and 2.
        (6) Studying the implications of offering preschool programs for special education students.
        (7) Conducting the student services programs under IC 20-20-27.


        (8) The Indiana writing project.
    (b) The evaluation of P.L.390-1987(ss) and the primetime program described in subsection (a)(2) and (a)(4) shall be conducted by an entity other than the department under a contract entered into by the department.
    (c) The student services programs under subsection (a)(7) shall be funded under the program based upon criteria approved by the department. The programs must include a study of:
        (1) the role of the public school guidance counselor; and
        (2) the guidance counselor proficiency statements developed under P.L.342-1989(ss), SECTION 39, as approved by the department.
    Chapter 12. Program for the Advancement of Math and Science
    Sec. 1. The department shall administer the advanced placement program established by IC 20-36-3-4(a).
    Chapter 13. Educational Technology Program and Grants
    Sec. 1. As used in sections 13 through 24 of this chapter, "grant" refers to a technology plan grant under sections 13 through 24 of this chapter.
    Sec. 2. As used in sections 13 through 24 of this chapter, "group" includes the school corporations that are placed in a group of school corporations under sections 13 through 24 of this chapter.
    Sec. 3. As used in sections 13 through 24 of this chapter, "school corporation" includes, except as otherwise provided in this chapter, the Indiana School for the Deaf established by IC 20-22-2-1 and the Indiana School for the Blind established by IC 20-21-2-1.
    Sec. 4. As used in sections 6 through 12 of this chapter, "technology equipment" means computer hardware, computer software, related teacher training services, related instructional manuals and materials, and equipment servicing.
    Sec. 5. As used in sections 13 through 24 of this chapter, "technology plan" refers to a technology plan developed under section 7 of this chapter.
    Sec. 6. (a) The educational technology program and fund is established to provide and extend educational technologies to elementary and secondary schools 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) providing educational technologies, including computers in the homes of students;
        (3) conducting educational technology training for teachers; and
        (4) other innovative educational technology programs.
    (b) The department may also use money in the fund under contracts entered into with the Indiana department of administration and the state data processing oversight commission 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) Institutions of higher learning.
        (3) Vocational 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;
        (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 program and fund shall be administered by the department.
    (e) Unexpended money appropriated to or otherwise available in the fund for the department's use in implementing the program under this chapter 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 21-2-15-4 for educational technology equipment.
    Sec. 7. (a) Notwithstanding any other law, a school corporation is not entitled to:
        (1) receive any money under this chapter or IC 20-20-15;
        (2) use money from the school corporation's capital projects fund for educational technology equipment under IC 21-2-15-4; or
        (3) receive an advance from the common school fund for an educational technology program under IC 21-1-5;
unless the school corporation develops a three (3) year technology plan.
    (b) Each technology plan must include at least the following information:
        (1) A description of the school corporation's intent to integrate technology into the school corporation's curriculum.
        (2) A plan for providing inservice training.
        (3) A schedule for maintaining and replacing educational technology equipment.
        (4) A description of the criteria used to select the appropriate educational technology equipment for the appropriate use.
        (5) Other information requested by the department after consulting with the budget agency.
    (c) The department shall develop guidelines concerning the development of technology plans. The guidelines developed under this subsection are subject to the approval of the governor.
    Sec. 8. Upon the approval of the governor and the budget agency, the department may use funds available under this chapter to provide or extend education technology to any school corporation for purposes described in this chapter. The department (upon the approval of the governor and the budget agency) may direct funds under this chapter to the corporation for educational technology under IC 20-20-15 to further the corporation's purposes.
    Sec. 9. (a) This section applies to the 4R's technology program described in section 6(a)(1) of this chapter.
    (b) In addition to any other funds available under this chapter, if state funds are transferred under IC 20-32-5-19 to the 4R's technology program:
        (1) those funds do not revert to the state general fund;
        (2) those funds shall be made available to the 4R's technology

program under this chapter; and
        (3) the department, upon approval by the governor and the budget agency, shall use those funds to award grants under this section.
    (c) To be eligible to receive a grant under the program, a school corporation must comply with the following:
        (1) The school corporation must apply to the department for a grant on behalf of a school within the school corporation to purchase technology equipment.
        (2) The school corporation must certify the following:
            (A) That the school will provide every kindergarten and grade 1 student at that school the opportunity to learn reading, writing, and arithmetic using technology.
            (B) That the school will provide daily before or after school technology laboratories for students in grades 1 through 3 who have been identified as needing remediation in reading, writing, or arithmetic.
            (C) That the school will provide additional technology opportunities, that may include Saturday sessions, for students in other grade levels to use the technology laboratories for remediation in reading, writing, arithmetic, or mathematics.
            (D) That the school will provide technology opportunities to students that attend remediation programs under IC 20-32-8 (if the school corporation is required to do so) or any other additional summer programs.
            (E) That the school corporation, either through its own or the school's initiative or through donations made to the corporation for educational technology under IC 20-20-15 on behalf of the school corporation, is able to provide a part of the costs attributable to purchasing the necessary technology equipment.
        (3) The school corporation must include in the application the sources of and the amount of money secured under subdivision (2)(E).
        (4) The school corporation or the school must:
            (A) provide teacher training services; or
            (B) use vendor provided teacher training services.
        (5) The school corporation must give primary consideration to the purchase of technology equipment that includes teacher training services.
        (6) The teachers who will be using the technology equipment

must support the initiative described in this chapter.
    (d) Upon review of the applications by the department, the satisfaction of the requirements set forth in subsection (c), and subject to the availability of funds for this purpose, the department shall award to each eligible school corporation a grant to purchase technology equipment under section 6(a)(1) of this chapter.
    (e) The department shall monitor the compliance by the school corporations receiving grants of the matters cited in subsection (c).
    Sec. 10. The department shall develop guidelines necessary to implement sections 6 through 9 of this chapter, including guidelines that require the school corporation to use the laboratories to the fullest extent possible.
    Sec. 11. To be eligible to receive money under sections 6 through 9 of this chapter, a school corporation must apply to the department on forms provided by the department.
    Sec. 12. A school corporation that receives a grant under sections 6 through 9 of this chapter must deposit the grant in the school technology fund established under IC 21-2-18.
    Sec. 13. There is established a technology plan grant program.
    Sec. 14. The department shall fund and administer the technology plan grant program.
    Sec. 15. A school corporation qualifies for a technology plan grant under sections 13 through 24 of this chapter when the technology plan of the school corporation developed under section 7 of this chapter is approved by the department. For purposes of determining whether a school corporation qualifies for a grant under sections 13 through 24 of this chapter, the department shall:
        (1) review;
        (2) suggest changes;
        (3) approve; or
        (4) reject;
a school corporation's technology plan. However, before the department may approve a technology plan, the department must consult with the corporation for educational technology established by IC 20-20-15-3 on the contents of the technology plan.
    Sec. 16. (a) This section applies when a school corporation does not qualify for a grant because the school corporation's technology plan has not been approved under section 15 of this chapter.
    (b) The department shall delay grant distribution after the scheduled time for grant distribution until the school corporation's technology plan is approved. The delay is without loss or penalty to the school corporation. If the school corporation's technology

plan is not approved by the end of the grant distribution period, the school corporation may not receive a grant distribution.
    Sec. 17. The total technology plan grant amount to a qualifying school corporation is the amount determined by the department, with advice from the educational technology council established by IC 20-20-14-2, multiplied by the school corporation's ADM. The amount is one hundred dollars ($100). However, for the purposes of determining the ADM of a school corporation, students who are transferred under IC 20-33-4 or IC 20-26-11 shall be counted as students having legal settlement in the transferee corporation and not having legal settlement in the transferor corporation.
    Sec. 18. A school corporation must use a grant received under sections 13 through 24 of this chapter to implement all or part of the school corporation's technology plan by funding uses that include the following:
        (1) Support of the school corporation's remediation plans.
        (2) Professional development related to technology.
        (3) Computers in classrooms.
        (4) Computers for teachers.
        (5) Access to electronic gateways or telephone access to information providers.
        (6) The buddy system project (as described in IC 20-20-15-4(1)(A)).
        (7) Video distance learning.
        (8) Wiring infrastructure.
        (9) Salaries for management of the technology program.
        (10) Technical support.
        (11) Wide area networks and local area networks.
        (12) Media distribution systems.
        (13) Expansion of the 4R's technology program (as described in section 6(a)(1) of this chapter).
        (14) Software.
        (15) Library automation.
        (16) Indiana public broadcasting services.
        (17) Assistive technology devices for students with disabilities.
    Sec. 19. (a) The department shall list all school corporations in Indiana according to assessed valuation for property tax purposes per student in ADM, beginning with the school corporation having the lowest assessed valuation for property tax purposes per student in ADM. For purposes of the list made under this section, the Indiana School for the Deaf established by IC 20-22-2-1 and the Indiana School for the Blind established by IC 20-21-2-1 shall be

considered to have the lowest assessed valuation for property tax purposes per student in ADM during the six (6) year period beginning July 1, 2001.
    (b) The department must prepare a revised list under subsection (a) before a new series of grants may begin.
    (c) The department shall determine those school corporations to be placed in a group to receive a grant in a fiscal year under sections 13 through 24 of this chapter as follows:
        (1) Beginning with the school corporation that is first on the list developed under subsection (a), the department shall continue sequentially through the list and place school corporations that qualify for a grant under section 15 of this chapter in a group until the cumulative total ADM of all school corporations in the group depletes the money that is available for grants in the fiscal year.
        (2) Each fiscal year the department shall develop a new group by continuing sequentially through the list beginning with the first qualifying school corporation on the list that was not placed in a group in the prior fiscal year.
        (3) If the final group developed from the list contains substantially fewer students in ADM than available money, the department shall:
            (A) prepare a revised list of school corporations under subsection (a); and
            (B) place in the group qualifying school corporations from the top of the revised list.
        (4) The department shall label the groups with sequential numbers beginning with "group one".
    Sec. 20. (a) Except as provided in subsection (b), in a state fiscal year, the department shall distribute grants to only two (2) groups of school corporations with each of the two (2) groups receiving fifty percent (50%) of the group's total grant amount.
    (b) In state fiscal year 1996-1997:
        (1) the department shall begin grant distribution under sections 13 through 24 of this chapter; and
        (2) the school corporations in group one shall receive one hundred percent (100%) of the group's total grant.
    (c) Beginning in state fiscal year 1997-1998, the department shall:
        (1) distribute grants so that school corporations in group two receive:
            (A) fifty percent (50%) of group two's total grant in the

first year of distribution; and
            (B) fifty percent (50%) of group two's total grant in the second year of distribution; and
        (2) continue in group number sequence so that school corporations in each group receive:
            (A) fifty percent (50%) of the group's total grant in the first year of distribution to the group; and
            (B) fifty percent (50%) of the group's total grant in the second year of distribution to the group.
    Sec. 21. A school corporation shall report to the department on the use of grant money received under sections 13 through 24 of this chapter. A school corporation that fails to make a report under this section is not eligible for a subsequent grant.
    Sec. 22. (a) This section applies in a year when a school corporation receives a grant under sections 13 through 24 of this chapter. The school corporation's capital projects fund budget must include an expenditure for technology that is not less than the school corporation's average annual expenditure for technology from the capital projects fund in the six (6) budget years preceding the year of the grant. If the Indiana School for the Deaf established by IC 20-22-2-1 or the Indiana School for the Blind established by IC 20-21-2-1 receives a grant under sections 13 through 24 of this chapter, the school's expenditures for technology in the year of the grant must exceed the school's average annual expenditure for technology in the six (6) budget years preceding the year of the grant.
    (b) For each year that a school corporation fails to observe subsection (a), the school corporation forfeits a grant under sections 13 through 24 of this chapter. The forfeit of the grant must occur in the first grant year after the school corporation fails to observe subsection (a).
    Sec. 23. The department shall develop guidelines to implement sections 13 through 24 of this chapter.
    Sec. 24. A school corporation that receives a grant under sections 13 through 24 of this chapter shall deposit the grant in the school technology fund established under IC 21-2-18. If the Indiana School for the Deaf established by IC 20-22-2-1 or the Indiana School for the Blind established by IC 20-21-2-1 receives a grant under sections 13 through 24 of this chapter, the school shall deposit the grant in an account or fund that the school uses exclusively for the funding of technology.
    Chapter 14. Educational Technology Council


    Sec. 1. As used in this chapter, "council" refers to the educational technology council established by section 2 of this chapter.
    Sec. 2. The educational technology council is established.
    Sec. 3. (a) The council shall advise the state superintendent and the governor on education related technology initiatives.
    (b) The appointed membership of the council shall reflect its purposes and be experienced in technology generally. An appointed member of the council serves at the pleasure of the appointing authority. The council consists of the following sixteen (16) voting members:
        (1) The state superintendent.
        (2) The special assistant to the state superintendent of public instruction responsible for technology who is appointed under section 5 of this chapter.
        (3) Four (4) individuals who represent private business appointed jointly by the state superintendent and the governor. Each member appointed under this subdivision must be experienced in development and use of information technology. A member appointed under this subdivision may not represent possible providers of technology or related services.
        (4) Three (3) individuals who:
            (A) manage educational environments, including higher education; and
            (B) are experienced in their educational work with information technology;
        are appointed jointly by the state superintendent and the governor.
        (5) Three (3) individuals who are public school educators familiar with and experienced in the use of technology in educational settings appointed jointly by the state superintendent and the governor, with one (1) representing an urban school corporation, one (1) representing a suburban school corporation, and one (1) representing a rural school corporation.
        (6) Four (4) members who are members of the general assembly and who are appointed as follows:
            (A) Two (2) members of the house of representatives, appointed by the speaker of the house of representatives with not more than one (1) from a particular political party.
            (B) Two (2) members of the senate, appointed by the president pro tempore of the senate with not more than one (1) from a particular political party.
    (c) The state superintendent shall designate the chair of the council from the membership of the council.
    (d) Nine (9) members of the council constitute a quorum to conduct business. Action of the council is not valid unless approved by at least seven (7) voting members of the council.
    (e) Each member of the council who is not a state employee is not entitled to the minimum salary per diem as provided by IC 4-10-11-2.1(b). The member is, however, entitled to reimbursement for traveling expenses as provided under IC 4-13-1-4 and other expenses actually incurred in connection with the member's duties as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget agency.
    (f) Each member of the council who is a state employee but who is not a member of the general assembly is entitled to reimbursement for traveling expenses as provided under IC 4-13-1-4 and other expenses actually incurred in connection with the member's duties as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget agency.
    (g) Each member of the council who is a member of the general assembly is entitled to receive the same per diem, mileage, and travel allowances paid to members of the general assembly serving on interim study committees established by the legislative council.
    Sec. 4. The department may employ personnel or consultants, or both, to carry out the council's duties and functions.
    Sec. 5. (a) The state superintendent shall appoint a special assistant for technology. The person appointed under this section serves at the pleasure of the state superintendent.
    (b) The person appointed under subsection (a) must be experienced in the integration of educational technology initiatives, infrastructure management and support, and applied research into effective educational practices available to students and educators in the classroom. The state superintendent is encouraged to conduct a nationwide search for the best available talent to fill the position required by this section.
    (c) The person appointed under subsection (a) shall coordinate the duties and functions of the department and the council under the following:
        (1) IC 20-20-13 (educational technology program and grants).
        (2) This chapter.
        (3) Any other law concerning educational technology or telecommunications.
    Chapter 15. Corporation for Educational Technology
    Sec. 1. As used in this chapter, "board" refers to the board of directors of the corporation.
    Sec. 2. As used in this chapter, "corporation" refers to the corporation for educational technology established under section 3 of this chapter.
    Sec. 3. (a) The state superintendent may, on behalf of the state, establish a private nonprofit corporation named "the corporation for educational technology".
    (b) Upon:
        (1) the establishment of the corporation;
        (2) the corporation satisfying the conditions imposed by section 4 of this chapter; and
        (3) the state superintendent certifying the corporation;
the corporation may perform the functions set forth in section 5 of this chapter.
    (c) Before certification by the state superintendent, the corporation must conduct a public hearing to give all interested parties an opportunity to review and comment on the articles of incorporation, bylaws, and methods of operation of the corporation. Notice of the hearing must be given at least fourteen (14) days before the hearing in accordance with IC 5-14-1.5-5(b).
    Sec. 4. The articles of incorporation and bylaws of the corporation must provide for the following:
        (1) That the exclusive purposes of the corporation are to:
            (A) administer a statewide computer project placing computers in homes of public school students (commonly referred to as the "buddy system project") and any other educational technology program or project jointly authorized by the state superintendent and the governor; and
            (B) advise the state superintendent and the governor on education related technology initiatives, specifically those initiatives implemented through the educational technology program under IC 20-20-13.
        (2) That the board is composed of sixteen (16) individuals who serve at the pleasure of the state superintendent and the governor and who shall be appointed jointly by the state

superintendent and the governor as follows:
            (A) Four (4) individuals who represent private business.
            (B) Three (3) individuals who are public school educators with one (1) representing an urban school corporation, one (1) representing a suburban school corporation, and one (1) representing a rural school corporation.
            (C) Four (4) individuals who are members of the general assembly and who are appointed as follows:
                (i) Two (2) members of the house of representatives, appointed by the speaker of the house of representatives with not more than one (1) from a particular political party.
                (ii) Two (2) members of the senate, appointed by the president pro tempore of the senate with not more than one (1) from a particular political party.
            (D) Five (5) individuals who represent education.
        (3) That the state superintendent shall designate the chair of the board from the membership of the board.
        (4) That the board may select other officers the board considers necessary, including a vice chair, treasurer, or secretary.
        (5) That the chair of the board may appoint subcommittees that the chair considers necessary to carry out the duties of the corporation.
        (6) That the corporation, with the approval of the state superintendent, shall appoint or contract with a person to be president. The president shall serve as the chief operating officer of the corporation and may employ consultants to carry out the corporation's duties under this chapter.
        (7) That a majority of the entire membership constitutes a quorum to do business. However, an action of the corporation is not valid unless approved by at least nine (9) members of the corporation.
        (8) That each board member who is not a state employee is not entitled to the minimum salary per diem provided by IC 4-10-11-2.1(b). Such a member is, however, entitled to reimbursement for traveling expenses and other expenses actually incurred in the state travel policies and procedures established by the Indiana department of administration and approved by the budget agency.
        (9) That each member of the board who is a state employee but who is not a member of the general assembly is entitled to

reimbursement for traveling expenses and other expenses actually incurred in connection with the member's duties, as provided in the state travel policies and procedures established by the Indiana department of administration and approved by the budget agency.
        (10) That each member of the board who is a member of the general assembly is entitled to receive the same per diem, mileage, and travel allowances paid to members of the general assembly serving on interim study committees established by the legislative council.
        (11) That the corporation may receive money from any source, including state appropriations, may enter into contracts, and may expend funds for any activities necessary, convenient, or expedient to carry out the exclusive purposes of the corporation.
        (12) That an individual who makes a donation to the corporation may designate:
            (A) the particular school corporation; or
            (B) the educational technology program implemented by the corporation under IC 20-20-13;
        to receive the donation, and that the corporation may not authorize the distribution of that donation in a manner that disregards or otherwise interferes with the donor's designation. However, an individual who wishes to make a donation under this chapter is not entitled to specify, designate, or otherwise require that the corporation use the donation to purchase particular technology equipment or patronize a particular vendor of technology equipment.
        (13) That if the corporation elects to expend funds that have not been designated to a particular school corporation or educational technology program under IC 20-20-13, the corporation shall first expend those unspecified funds to school corporations or programs that have not been the recipient of a designated donation under subdivision (12).
        (14) That the corporation shall take into account other programs and distributions available to school corporations for at risk students.
        (15) That any changes in the articles of incorporation or bylaws must be approved by the board.
        (16) That the corporation shall submit an annual report to the general assembly before November 2 of each year and that the report must include detailed information on the structure,

operation, and financial status of the corporation and must be in an electronic format under IC 5-14-6.
        (17) That the corporation is subject to an annual audit by the state board of accounts, and that the corporation shall pay the full costs of the audit.
    Sec. 5. The corporation, after being certified by the state superintendent under section 3 of this chapter, may do the following:
        (1) Take over the responsibilities and obligations associated with the project commonly referred to as the "buddy system project" as described in section 4(1)(A) of this chapter, which may include the following relating to the buddy system project:
            (A) Conducting conferences on advances in technology and their application to the educational field.
            (B) Upon the joint authorization by the state superintendent and the governor, establishing, operating, or managing education technology programs that:
                (i) encourage the productive use of technology for instructing students in kindergarten through grade 12;
                (ii) place technology directly with teachers and students, whether in school or otherwise to advance the education and skills and enhance the attitude of Indiana students who are in kindergarten through grade 12; or
                (iii) accomplish both of the objectives described in items (i) and (ii).
        (2) Administer all funds received by the corporation from whatever source to further the corporation's purposes, consistent with section 4(12) and 4(13) of this chapter.
    Sec. 6. In administering the funds received by the corporation, the corporation may elect to direct corporation funds to the educational technology program under IC 20-20-13 in order to further the purposes of the educational technology program.
    Sec. 7. Debts incurred by the corporation under authority of this chapter do not represent or constitute a debt of the state within the meaning of Indiana statutes or the Constitution of the State of Indiana.
    Chapter 16. Access to Telecommunications Service
    Sec. 1. The purpose of this chapter is to effectively:
        (1) provide the methods and means by which all schools and libraries may receive access to resources available through technology and telecommunications services; and


        (2) maximize the eligibility, availability, and use of the federal and state funding mechanisms.
    Sec. 2. As used in this chapter, "telecommunications services and equipment" includes all telecommunication services and equipment eligible for universal service fund discounts as described:
        (1) in the federal Telecommunications Act of 1996 (P.L.104-104, 110 Stat. 56 (1996)) and applicable regulations or orders issued under that act;
        (2) by the Indiana utility regulatory commission as allowed under the federal act; or
        (3) in the intelenet commission or state library technology grant programs.
    Sec. 3. The intelenet commission, with the department of education and the state library, shall coordinate available federal and state funds and funding mechanisms to accomplish full access to telecommunications services and equipment by all schools, libraries, and rural health care providers as defined in:
        (1) the federal Telecommunications Act of 1996 (P.L.104-104, 110 Stat. 56 (1996)) and regulations or orders issued under that act; or
        (2) any regulations or orders issued by the Indiana utility regulatory commission in fulfillment of the state's obligations under the act.
    Chapter 17. School Intervention and Career Counseling Development Program and Fund
    Sec. 1. As used in this chapter, "fund" refers to the school intervention and career counseling development fund established by section 4 of this chapter.
    Sec. 2. As used in this chapter, "grant" refers to a grant from the fund.
    Sec. 3. As used in this chapter, "school intervention and career counseling development program" refers to a program carried out under this chapter:
        (1) for kindergarten through grade 6; and
        (2) by a licensed school counselor.
    Sec. 4. (a) As a result of a comprehensive study conducted by the department on the role of school counselors, including the expanding role of school counselors in career development under workforce development programs that affect public schools, the school intervention and career counseling development fund is established. The money in the fund shall be used to develop

counseling models in a limited number of school corporations as determined by the department under this chapter.
    (b) If a school corporation is awarded a grant under this chapter, the school corporation must:
        (1) agree to evaluate the impact and results of the school corporation's program; and
        (2) submit the school corporation's findings to the department.
    (c) The department shall administer the fund.
    (d) The fund consists of:
        (1) gifts to the fund;
        (2) appropriations from the general assembly;
        (3) grants, including grants from private entities; and
        (4) a combination of the resources described in subdivisions (1), (2), and (3).
    Sec. 5. Subject to section 6 of this chapter, for a school corporation to be eligible to receive a grant under this chapter, the following must occur:
        (1) The superintendent of the school corporation must apply to the department for a grant on forms provided by the department.
        (2) The application for a grant must include the following information:
            (A) A detailed description of a proposal for initiating or expanding a school intervention or career counseling program.
            (B) Evidence supporting the school corporation's need to implement the school intervention or career counseling program.
            (C) The number of elementary school counselors employed by the school corporation.
            (D) The elementary school counselor/student ratio for the school corporation.
            (E) Any other pertinent information required by the department, including evidence guaranteeing that if the school corporation receives a grant under this chapter, the school corporation has developed a plan to evaluate the impact and results of the school corporation's program.
    Sec. 6. The department may award grants to school corporations:
        (1) upon review of the applications received under section 5 of this chapter;


        (2) upon receipt of the recommendations from the advisory committee under section 10 of this chapter;
        (3) subject to available money; and
        (4) in accordance with the following priorities:
            (A) To the extent possible, to achieve geographic balance throughout Indiana and to include urban, suburban, and rural school corporations.
            (B) To address a documented need for new or expanded school intervention or career counseling programs, including considering the percentage of students within the school corporation who are designated as at risk students.
            (C) To promote innovative methods for initiating or expanding school intervention or career counseling programs.
            (D) To reward school corporations that propose school intervention or career counseling programs that demonstrate the greatest potential for replication and implementation in Indiana.
            (E) To lower school counselor/student ratios where the ratios are excessively high.
    Sec. 7. (a) Subject to subsection (b), the department shall determine the amount of each grant that is awarded under this chapter.
    (b) A grant to a particular school corporation may not exceed:
        (1) fifteen thousand dollars ($15,000) for each full-time counselor for each academic year, or seven thousand five hundred dollars ($7,500) for each full-time counselor for each semester; and
        (2) the following total grant awards as each relates to the ADM of the school corporation at the time the school corporation applies for the grant:
            (A) For a school corporation with an ADM of not more than five thousand (5,000), seventy-five thousand dollars ($75,000).
            (B) For a school corporation with an ADM of at least five thousand one (5,001) and not more than nine thousand nine hundred ninety-nine (9,999), one hundred twenty thousand dollars ($120,000).
            (C) For a school corporation with an ADM of at least ten thousand (10,000), one hundred eighty thousand dollars ($180,000).
    Sec. 8. A grant received by a school corporation may be

expended by the school corporation for a twenty-four (24) month period.
    Sec. 9. The department shall develop guidelines necessary to implement this chapter.
    Sec. 10. (a) An advisory committee composed of five (5) members is established.
    (b) The state superintendent shall appoint the members of the advisory committee.
    (c) The state superintendent shall:
        (1) convene the advisory committee; and
        (2) act as chair of the advisory committee.
The state superintendent may not be a member of the advisory committee.
    (d) An employee of:
        (1) the governor; or
        (2) the department of education;
is eligible for appointment to the advisory committee.
    (e) A member of the advisory committee serves at the pleasure of the appointing authority.
    (f) A member of the advisory committee is not entitled to the following:
        (1) The minimum salary per diem provided in IC 4-10-11-2.1(b).
        (2) Reimbursement for traveling expenses and other expenses actually incurred in connection with the member's duties.
    (g) The advisory committee shall do the following:
        (1) Assist the department in developing the guidelines described in section 9 of this chapter.
        (2) Establish standards for qualifying for a grant under this chapter.
        (3) Review grant applications and make recommendations to the state superintendent concerning the awarding of grants.
        (4) Evaluate the impact and results of the various school intervention and career counseling programs receiving grants under this chapter.
    Chapter 18. Elementary School Counselors, Social Workers, and School Psychologists Program and Fund
    Sec. 1. As used in this chapter, "fund" refers to the elementary school counselors, social workers, and school psychologists fund established by section 4 of this chapter.
    Sec. 2. As used in this chapter, "grant" refers to a grant from the fund.


    Sec. 3. As used in this chapter, "program" refers to an elementary school counseling program, a social work program, or a school psychologist program carried out under this chapter:
        (1) for kindergarten through grade 6; and
        (2) by:
            (A) a licensed school counselor;
            (B) a licensed social worker who has obtained at least a master's degree; or
            (C) a licensed school psychologist.
    Sec. 4. (a) The elementary school counselors, social workers, and school psychologists fund is established. The money in the fund shall be used to assist school corporations in placing school counselors, social workers, and school psychologists in elementary schools through grants awarded as determined by the department under this chapter.
    (b) If a school corporation is awarded a grant under this chapter, the school corporation must:
        (1) agree to evaluate the impact and results of the school corporation's program; and
        (2) submit the school corporation's findings to the department.
    (c) The department shall administer the fund.
    (d) The fund consists of:
        (1) gifts to the fund;
        (2) appropriations from the general assembly; and
        (3) grants, including grants from private entities.
    Sec. 5. Subject to section 6 of this chapter, for a school corporation to be eligible to receive a grant under this chapter, the following must occur:
        (1) The superintendent of the school corporation must apply to the department for a grant on a form provided by the department.
        (2) The application for a grant must include the following information:
            (A) A detailed description of a proposal for placing school counselors, social workers, or school psychologists in elementary schools to provide services to students and their families.
            (B) Evidence supporting the school corporation's need to implement the program.
            (C) The number of elementary school counselors, social workers, and school psychologists employed by the school

corporation.
            (D) The elementary school:
                (i) school counselor/student ratio;
                (ii) social worker/student ratio; and
                (iii) school psychologist/student ratio;
            for the school corporation.
            (E) Any other pertinent information required by the department, including evidence guaranteeing that if the school corporation receives a grant under this chapter, the school corporation will have developed a plan to evaluate the impact and results of the school corporation's program.
    Sec. 6. Upon review of the applications received under section 5 of this chapter, the department may award grants to school corporations subject to available money and in accordance with the following priorities:
        (1) To the extent possible, to achieve geographic balance throughout Indiana and to include urban, suburban, and rural school corporations.
        (2) To address a documented need for new or expanded programs, including consideration of the percentage of students within the school corporation who are designated as at risk students.
        (3) To lower:
            (A) student/school counselor ratios;
            (B) student/social worker ratios; and
            (C) student/school psychologist ratios;
        where the ratios are excessively high.
    Sec. 7. The department shall determine the amount of each grant that is awarded under this chapter.
    Sec. 8. A grant received by a school corporation may be expended by the school corporation for a twenty-four (24) month period.
    Sec. 9. The department shall develop guidelines necessary to implement this chapter.
    Chapter 19. School Social Workers
    Sec. 1. (a) An individual who obtains a position as a school social worker for a school corporation must:
        (1) hold a master's degree in social work; or
        (2) agree as a condition of employment to obtain a master's degree in social work not more than five (5) years after the individual begins employment as a school social worker.


    (b) Subsection (a) does not apply to an individual who obtained a position as a school social worker for a school corporation before July 1, 2001.
    Chapter 20. Secondary Level Vocational Education
    Sec. 1. As used in this chapter, "commission" refers to the Indiana commission on vocational and technical education of the department of workforce development established by IC 22-4.1-13-6.
    Sec. 2. As used in this chapter, "vocational education" means any secondary level vocational, agricultural, occupational, manpower, or technical training or retraining that:
        (1) enhances an individual's career potential and further education; and
        (2) is accessible to individuals who desire to explore and learn for economic and personal growth leading to employment opportunities.
    Sec. 3. (a) The state board shall do the following:
        (1) Establish and monitor the operation of secondary level vocational education in Indiana in accordance with the comprehensive long range state plan developed by the commission under IC 22-4.1-13-9.
        (2) Establish a list of approved secondary level vocational education courses in accordance with the workforce partnership plans under IC 22-4.1-14.
    (b) The state board may authorize the department, whenever practical or necessary, to assist in carrying out the duties prescribed by this chapter.
    (c) The state board shall do the following:
        (1) Implement, to the best of its ability, its vocational education plan prepared under section 4 of this chapter.
        (2) Investigate the funding of vocational education on a cost basis.
        (3) Cooperate with the commission in implementing the long range plan prepared by the commission under IC 22-4.1-13-9.
    Sec. 4. The state board shall biennially prepare a plan for implementing vocational education and shall submit the plan to the commission for its review and recommendations.
    Sec. 5. The state board shall make recommendations to the commission on all secondary level vocational education.
    Sec. 6. Upon request of the budget director, the department shall prepare a legislative budget request for state and federal funds for vocational education. The budget director shall

determine the period to be covered by the budget request. This budget request shall be made available to the commission under IC 22-4.1-13-15 before review by the budget committee.
    Sec. 7. The department shall distribute state funds made available for vocational education that have been appropriated by the general assembly in accordance with the general assembly appropriation and the plan prepared by the state board under section 4 of this chapter.
    Sec. 8. The state board shall develop a definition for and report biennially to the:
        (1) general assembly;
        (2) governor; and
        (3) commission;
on attrition and persistence rates by students enrolled in secondary vocational education. A biennial report under this section to the general assembly must be in an electronic format under IC 5-14-6.
    Sec. 9. The state board shall adopt rules under IC 4-22-2 and shall contract for services whenever necessary to perform the duties imposed by this chapter in accordance with the plan developed under section 4 of this chapter and approved by the commission.
    Chapter 21. Advisory Adult Literacy Coalition
    Sec. 1. As used in this chapter, "coalition" refers to the advisory adult literacy coalition established by section 2 of this chapter.
    Sec. 2. The governor shall establish an advisory adult literacy coalition to do the following:
        (1) Promote lifelong learning for Indiana residents so the residents may participate fully in family, community, civic, employment, and educational opportunities.
        (2) Encourage the coordination of state agency activity related to adult literacy.
    Sec. 3. As part of the program, the coalition shall encourage the following:
        (1) Communication among all the programs serving adults who need development in basic reading, writing, and math skills.
        (2) Publicity about adult literacy programs throughout Indiana.
        (3) The development and maintenance of local literacy coalitions to coordinate, expand, and improve local literacy services.
        (4) Promotion of learner involvement in literacy programs

and organizations.
        (5) Contributions of time, space, funds, and other support by business and industry to:
            (A) assist employees lacking the necessary reading, writing, and math skills; and
            (B) encourage employees to become volunteers in literacy programs.
        (6) Identification of gaps in services and literacy trends to assist state policymakers.
    Sec. 4. (a) The coalition must have:
        (1) at least thirty (30); and
        (2) not more than thirty-five (35);
members. The governor shall appoint the members on the recommendation of the state superintendent.
    (b) A member serves a two (2) year term.
    Sec. 5. (a) Before September 30 of each year, the state superintendent shall recommend to the governor individuals for appointment to the coalition.
    (b) The governor shall:
        (1) appoint the members of the coalition; and
        (2) designate the date the terms of the members of the coalition begin so that terms are staggered.
    (c) The membership of the coalition must include representatives from the following:
        (1) The general assembly.
        (2) Adult basic education programs.
        (3) Local libraries.
        (4) Community based organizations.
        (5) Local literacy coalitions.
        (6) Business and industry.
        (7) Labor.
        (8) Associations involved with promoting adult literacy in Indiana.
        (9) The Indiana Literacy Foundation.
        (10) Higher education.
        (11) Persons who have benefited from adult literacy programs.
    Sec. 6. The department shall provide logistical support to the coalition.
    Sec. 7. The director of each of the following state agencies shall appoint an ex officio member to serve on the coalition and provide appropriate support to the coalition:


        (1) The Indiana library and historical department.
        (2) The department of workforce development.
        (3) The department of correction.
        (4) The office of the secretary of family and social services.
        (5) The Indiana economic development corporation.
        (6) The department.
    Sec. 8. This chapter expires January 1, 2007.
    Chapter 22. Teacher Quality and Professional Improvement Program
    Sec. 1. As used in this chapter, "program" refers to the teacher quality and professional improvement program established by section 2 of this chapter.
    Sec. 2. (a) The teacher quality and professional improvement program is established to:
        (1) review the salary and reward structure for teachers; and
        (2) identify and develop methods to confer honor upon:
            (A) the teaching profession; and
            (B) individual teachers;
in Indiana.
    (b) The state board shall administer the program.
    Sec. 3. The state board shall work with school corporations to do the following:
        (1) Examine and develop a plan for the implementation of a comprehensive career ladder system, which includes assisting at least three (3) school corporations to serve as model field studies for the feasibility of a career ladder reward program.
        (2) Examine the implications of the career ladder system on the collective bargaining process under IC 20-29-6 and determine the effect of the collective bargaining process on the implementation of a career ladder system.
        (3) Develop and implement recommendations for basic pay increases for teachers to be phased in with a career ladder system of rewards for teachers.
        (4) Create programs that provide additional professional development opportunities for individual teachers, including the following programs:
            (A) Continuing education scholarships for teachers.
            (B) Professional development training for teachers.
            (C) Paid sabbatical leave for teachers.
            (D) Teacher fellowships.
            (E) Grants to schools for extended teacher contracts.
            (F) Grants for inschool projects for upgrading curriculum

or improving instruction.
        (5) Develop visible and meaningful ways to foster greater respect for the teaching profession and confer honor upon individual teachers in Indiana.
        (6) Examine ways to implement a system of rewarding school corporations that improve the work environment by fostering collaborative working arrangements among teachers.
    Sec. 4. The board shall adopt rules under IC 4-22-2 to implement this chapter.
    Chapter 23. Projects for Innovative Education
    Sec. 1. As used in this chapter, "project" means an innovative education project as described in this chapter.
    Sec. 2. (a) The innovative education projects fund is established for funding special experimental demonstration projects that involve the innovative use of teachers, methods, systems, materials, or programs for preschool, elementary school, or secondary school students that may have a special value in promoting effective educational programs in Indiana. The state board shall administer the fund.
    (b) The fund may be used only for projects created under this chapter.
    (c) The expenses of administering the fund shall be paid from money in the fund.
    (d) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited in the fund.
    (e) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    Sec. 3. (a) The state board shall adopt rules under IC 4-22-2 to:
        (1) establish project guidelines and criteria in addition to those specified in this chapter;
        (2) establish application deadlines;
        (3) evaluate projects;
        (4) provide for the dissemination of project plans to all interested school corporations in the state; and
        (5) otherwise carry out the purposes of this chapter.
    (b) The state board may select and distribute money to school corporations submitting project proposals that best carry out the purposes of this chapter.
    Sec. 4. For a project to receive funding under this chapter it must do the following:


        (1) Provide for curricular and instructional strategy and use of materials responsive to individual educational needs and learning styles.
        (2) Provide for the development of basic and applied learning skills; multicultural education; physical, emotional, and mental health education; consumer economics; career education; or skills in the arts, humanities, and physical, natural, and social sciences.
        (3) Use community resources or communications media.
        (4) Provide staff development.
        (5) Provide for ongoing and annual evaluation of goals and objectives.
        (6) Provide for parental involvement.
    Sec. 5. Projects under this chapter may include provisions for the following:
        (1) A principal-teacher or career teacher component as described in section 7 of this chapter.
        (2) A counselor-teacher component as described in section 8 of this chapter.
        (3) Cooperative efforts with community agencies.
        (4) Advanced or accelerated programs for students with special abilities.
        (5) Use of volunteers.
        (6) Flexible student attendance schedules.
        (7) Early childhood and family education.
        (8) Application of research findings.
        (9) Use of paraprofessionals.
        (10) Alternative criteria for high school graduation.
        (11) Variable age and class size groupings.
    Sec. 6. Consent from a student's parent must be obtained before the student's involvement in a project.
    Sec. 7. (a) A project may include a principal-teacher or career teacher component. The principal-teacher or career teacher may not be the exclusive teacher for students assigned to the principal-teacher or career teacher but shall serve the function of developing and implementing a student's overall learning program. The principal-teacher or career teacher may be responsible for regular classroom assignments as well as learning programs for other students assigned to the principal-teacher or career teacher.
    (b) A principal-teacher must be a principal and a career teacher must be a teacher licensed under IC 20-28-5.
    (c) The governing body of the school corporation shall establish

procedures for hiring individuals for the positions of principal-teacher and career teacher. The governing body has sole authority to hire these individuals. An individual is not entitled to employment in the position based on seniority or order of employment in the school corporation. The principal-teacher and career teacher shall be employed on a twelve (12) month basis with vacation time negotiated individually with the governing body.
    (d) The principal-teacher or career teacher is responsible for the following:
        (1) The overall education and learning plan of students assigned to the principal-teacher or career teacher. The principal-teacher or career teacher shall design a plan with the student, parents, and other faculty to maximize the learning potential and maturation level of each student.
        (2) Measuring the proficiency of the students assigned to the principal-teacher or career teacher and assisting other staff in identifying student needs and making appropriate educational and subject groupings.
        (3) If part of the project's plan, taking responsibility for the parent and early childhood education of students assigned to the principal-teacher or career teacher.
        (4) Designing and being responsible for program components that meet special learning needs of high potential and talented students.
        (5) Coordinating the ongoing, year-to-year learning program for students assigned to the principal-teacher or career teacher.
    Sec. 8. (a) A project may include a counselor-teacher component. The counselor-teacher may not be the exclusive teacher of the students assigned to the counselor-teacher.
    (b) A counselor-teacher must be a licensed counselor under IC 20-28-5.
    (c) The governing body of the school corporation shall establish procedures for hiring counselors for the position of counselor-teacher. The governing body has sole authority to hire the counselors. An individual is not entitled to employment in the position based on seniority or order of employment in the school corporation.
    (d) The counselor-teacher shall provide guidance and counseling services to students assigned to the counselor-teacher. This includes working with individual students, groups of students, and families.


    Chapter 24. Arts Education Program
    Sec. 1. The purpose of this chapter is to:
        (1) encourage local schools to develop comprehensive plans to improve arts in education;
        (2) coordinate available resources in support of arts programs in order to provide arts experiences for all students;
        (3) provide assistance to local agencies in the development and implementation of comprehensive programs to improve instruction in the elementary and secondary schools;
        (4) develop a means by which schools and communities can collaborate in order to strengthen programs;
        (5) provide leadership training in the planning, execution, and evaluation of arts education programs;
        (6) assist local schools in the development of educational arts education programs; and
        (7) assist local schools in the training of educational staff, including specialists in all of the arts and general classroom teachers.
    Sec. 2. As used in this chapter, "arts" includes the following:
        (1) Music.
        (2) Dance.
        (3) Drama.
        (4) Visual arts.
        (5) Creative writing.
        (6) Film making.
        (7) Arts related to the presentation, performance, execution, and exhibition of arts listed in subdivisions (1) through (6).
        (8) The study and application of arts listed in subdivisions (1) through (7) to the human environment.
    Sec. 3. The department may award grants to school corporations under this chapter.
    Sec. 4. A school corporation may apply for a grant under this chapter by submitting to the department a plan that includes the following:
        (1) Identification of the instructional needs of students and teachers in the arts.
        (2) A program through which funds received under this chapter as well as under local, state, or federal programs will serve the purposes of this chapter.
        (3) A program for coordinating the efforts of local agencies, organizations, and institutions in order to make their efforts more effective.
        (4) Identification of the area in which the funds received will be used, including one (1) of the following:
            (A) Comprehensive arts education programs.
            (B) Technical assistance leadership training.
            (C) Interagency and organizational programs.
            (D) Allotment programs for elementary arts specialists.
    Sec. 5. The department may consult with the Indiana arts commission and private arts organizations regarding expenditure of funds received under this chapter.
    Sec. 6. The state board shall adopt rules under IC 4-22-2 stating the criteria upon which grants may be made under this chapter. The department may make grants to school corporations from funds made available for purposes of this chapter.
    Chapter 25. Committee on Educational Attitudes, Motivation, and Parental Involvement
    Sec. 1. As used in this chapter, "committee" refers to the committee on educational attitudes, motivation, and parental involvement established by section 2 of this chapter.
    Sec. 2. The committee on educational attitudes, motivation, and parental involvement is established to do the following:
        (1) Study the attitudes of students toward the educational process in public schools.
        (2) Develop methods to motivate students to learn.
        (3) Develop methods to create and maintain a positive public perception within each community and within Indiana toward the public schools.
        (4) Develop methods to encourage increased parental and community involvement with the public schools.
        (5) Develop guidelines for the award of grants under section 6 of this chapter.
    Sec. 3. (a) The committee consists of fifteen (15) members.
    (b) The governor shall:
        (1) appoint the members upon the recommendation of the state superintendent; and
        (2) designate a member to serve as chair.
    (c) The chair shall call the meetings of the committee. The members serve two (2) year terms.
    Sec. 4. (a) The membership of the committee must include representatives from the following:
        (1) The general assembly.
        (2) The department.
        (3) Business.
        (4) Labor.
        (5) Agriculture.
        (6) Parents of children who attend public schools.
        (7) Public school or school corporation administrators.
        (8) Certificated employees (as defined in IC 20-29-2-4) who are teachers.
    (b) Each member of the committee who is not a state employee is not entitled to the minimum salary per diem provided by IC 4-10-11-2.1(b). Such a member is, however, entitled to reimbursement for traveling expenses and other expenses actually incurred in connection with the member's duties, as provided in the state travel policies and procedures established by the Indiana department of administration and approved by the budget agency.
    (c) Each member of the committee who is a state employee but who is not a member of the general assembly is entitled to reimbursement for traveling expenses and other expenses actually incurred in connection with the member's duties, as provided in the state travel policies and procedures established by the Indiana department of administration and approved by the budget agency.
    (d) Each member of the committee who is a member of the general assembly is entitled to receive the same per diem, mileage, and travel allowances paid to members of the general assembly serving on interim study committees established by the legislative council.
    Sec. 5. The state superintendent and the governor shall each designate a staff member to coordinate the planning of the committee.
    Sec. 6. (a) A school corporation may apply to the department for a grant to expand or implement programs to do the following:
        (1) Improve student attitudes toward education.
        (2) Increase student motivation to pursue higher educational goals.
        (3) Increase community and parental involvement with the local schools.
    (b) The committee shall make recommendations to the department concerning the award of grants under subsection (a).
    Chapter 26. Readiness Testing
    Sec. 1. The board shall authorize a series of studies to be conducted by the department to determine a plan for reimbursing school corporations for the costs of administering academic readiness tests to selected students in kindergarten, grade 1, and grade 2.
    Sec. 2. The department shall develop a plan, based upon the results of the studies, to offer readiness tests to school corporations.
    Sec. 3. Readiness testing under this chapter is in addition to ISTEP program testing under IC 20-32-5.
    Chapter 27. Student Services Programs
    Sec. 1. (a) The department shall establish a student services summer institute designed to coordinate the student services personnel from each school corporation with youth serving organizations in developing a cohesive plan to serve the needs of students.
    (b) The student services summer institute shall focus on developing a coordinated effort among the participants in the summer institute to do the following:
        (1) Increase and enhance preventive and effective student services programs.
        (2) Study methods of providing information and resources to assist parents in counseling students.
        (3) Reduce and eliminate clerical duties regularly assigned to student guidance personnel.
        (4) Coordinate the expertise and training of the student guidance personnel.
        (5) Prepare a program to implement the coordinated plan.
    Sec. 2. The student services summer institute shall identify the following:
        (1) Effective models for the coordination of student services in Indiana and nationwide.
        (2) Any rule, regulation, or funding requirement that creates barriers to or facilitates the coordination of student services.
        (3) Specific local conditions or circumstances that promote or inhibit the coordination of student services.
        (4) Specific needs or problems concerning the coordination of student services.
    Sec. 3. The department shall authorize a student services team pilot program to be conducted under the research and development program under IC 20-20-11 designed to assist participating student guidance personnel with services provided by other local youth serving organizations.
    Sec. 4. If a pilot program provides for direct services to students (other than services approved by the state board and governing bodies), parents of students must be notified that additional services are available.
    Chapter 28. Early Childhood Programs
    Sec. 1. As used in this chapter, "early childhood program" refers to a voluntary parental education program for parents of children from birth to less than three (3) years of age that provides these parents with information and activities to help the parents better prepare children for school.
    Sec. 2. As used in this chapter, "latch key program" means a voluntary school age child care program for children who attend kindergarten through grade 6 and that at a minimum, operates after the school day and may include periods before school is in session or during periods when school is not in session.
    Sec. 3. As used in this chapter, "preschool program" refers to a voluntary school readiness program for children who are at least three (3) years of age and not enrolled in at least kindergarten.
    Sec. 4. (a) The department shall establish pilot programs targeting at risk students in the following areas:
        (1) Early childhood parental information programs.
        (2) Latch key programs.
        (3) Preschool programs.
    (b) In establishing the pilot programs under this chapter, the department shall focus on implementing programs that enable the local school corporation and appropriate community agencies to cooperate with each other.
    (c) The department shall address the following in establishing the programs:
        (1) Screening for physical health problems that can inhibit school success.
        (2) Screening for learning disabilities.
        (3) Parental orientation and participation.
    (d) In addition, the department shall employ an early childhood specialist and support staff personnel to identify and determine ways to coordinate the educational programs offered by local youth serving organizations.
    Sec. 5. (a) The department:
        (1) shall select certain school corporations to participate in the respective pilot programs listed in section 4 of this chapter; and
        (2) may select school corporations that have a pilot program as described in section 4 of this chapter in existence on June 30, 1990.
    (b) A school corporation may enter into an agreement with a nonprofit corporation to provide early childhood education, preschool education, or latch key programs. However, if a school

corporation enters into a contract for preschool education, the nonprofit corporation:
        (1) must operate a federally approved preschool education program; and
        (2) may not be religiously affiliated.
    Sec. 6. The department shall develop guidelines necessary to implement this chapter.
    Sec. 7. Each school corporation that participates in a pilot program under this chapter shall prepare a written report detailing all of the pertinent information concerning the implementation of the pilot program, including any recommendations made and conclusions drawn from the pilot program. The school corporation shall submit the report to the department.
    Chapter 29. Twenty-First Century Schools Pilot Program
    Sec. 1. The department shall establish a twenty-first century schools pilot program to do the following:
        (1) Increase the involvement of parents, teachers, administrators, and local civic leaders in the operation of the local school.
        (2) Provide more responsibility and flexibility in the governance of schools at the local level.
        (3) Encourage innovative and responsive management practices in light of the social and economic problems in the community.
        (4) Provide grants to schools selected by the department to implement twenty-first century schools pilot programs.
    Sec. 2. (a) The department shall administer the twenty-first century schools pilot program.
    (b) Unexpended money appropriated to the department for the department's use in implementing the pilot program under this chapter at the end of a state fiscal year does not revert to the state general fund but remains available to the department for the department's continued use under this chapter.
    Sec. 3. To be eligible for selection as a twenty-first century schools pilot program grant recipient, a school must do the following:
        (1) Apply to the department for a grant, on forms provided by the department, and include a detailed description of the school pilot program.
        (2) Demonstrate a significant commitment by teachers, parents, and school administrators toward achieving positive

outcomes in school activities.
        (3) Establish a school/community improvement council consisting of parents of students, school personnel, and representatives of the community.
        (4) Comply with all other requirements set forth by the department.
    Sec. 4. A pilot program eligible to be funded under this chapter must include all of the following:
        (1) School based management models.
        (2) Parental involvement strategies.
        (3) Innovative integration of curricula, individualized education programs, nonstandard courses, or textbook adoption in the school improvement plan described under IC 20-31-4-6(6).
        (4) Training for participants to become effective members on school/community improvement councils.
    Sec. 5. To encourage participation in the pilot program by local schools, a school corporation that is selected to participate in the pilot program is not required to comply with certain state imposed standards as determined by the department with the consent of the state board.
    Sec. 6. Upon review of the applications submitted by schools under section 3 of this chapter, the department shall select the schools to participate in the twenty-first century schools pilot program.
    Sec. 7. Each participating school shall prepare a written report to be submitted to the department that includes the findings, conclusions, and recommendations of the school concerning the twenty-first century schools pilot program.
    Sec. 8. The department shall develop guidelines necessary to implement this chapter.
    Sec. 9. The department may employ personnel necessary to implement this chapter.
    Chapter 30. Anti-Gang Counseling Pilot Program and Fund
    Sec. 1. As used in this chapter, "anti-gang counseling" refers to efforts described under section 8 of this chapter that are designed to discourage students from the following:
        (1) Becoming members of criminal gangs.
        (2) Engaging in criminal gang activity.
    Sec. 2. As used in this chapter, "criminal gang" has the meaning as set forth in IC 35-45-9-1.
    Sec. 3. As used in this chapter, "fund" refers to the anti-gang

counseling pilot program fund established by section 9 of this chapter.
    Sec. 4. As used in this chapter, "participating school corporation" refers to a school corporation or more than one (1) school corporation under a joint agreement selected by the department to participate in the pilot program.
    Sec. 5. As used in this chapter, "pilot program" refers to the anti-gang counseling pilot program established by section 8 of this chapter.
    Sec. 6. As used in this chapter, "pilot project" refers to an anti-gang counseling pilot project authorized under section 8 of this chapter.
    Sec. 7. As used in this chapter, "student" refers to a public school student who is in an appropriate grade level as determined by the participating school corporation.
    Sec. 8. The department shall establish the anti-gang counseling pilot program to provide financial assistance to participating school corporations to establish pilot projects designed to do the following:
        (1) Educate students and parents:
            (A) of the extent to which criminal gang activity exists in the school corporation's community;
            (B) on the negative societal impact that criminal gangs have on the community; and
            (C) on methods to discourage participation in criminal gangs.
        (2) Encourage the use of community resources not directly affiliated with the school corporation, including law enforcement officials, to participate in the particular pilot project.
        (3) Enable the participating school corporations on a case by case basis and with the prior written approval of the student's parent to contract with community mental health centers to provide appropriate anti-gang counseling to a student identified by the student's school guidance counselor as being at risk of becoming a member of a criminal gang or at risk of engaging in criminal gang activity.
    Sec. 9. (a) The anti-gang counseling pilot program fund is established to provide grants to participating school corporations to establish and operate the school corporation's pilot project.
    (b) The department shall administer the fund.
    (c) The expenses of administering the fund shall be paid from

money in the fund.
    (d) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.
    Sec. 10. (a) To be eligible for a grant under this chapter, a school corporation or more than one (1) school corporation under a joint agreement must timely apply for the grant to the department on forms provided by the department.
    (b) The applying school corporation must include at least the following information in the school corporation's application:
        (1) The number of students likely to benefit from the pilot project.
        (2) A detailed description of the proposed pilot project format.
        (3) The extent to which the applying school corporation intends to include appropriate community resources not directly affiliated with the applying school corporation in the pilot project.
        (4) A statement of and any supporting information concerning the need to establish the pilot project as perceived by the applying school corporation.
        (5) The estimated cost of implementing the pilot project.
        (6) Any other pertinent information required by the department.
    Sec. 11. (a) The department may approve not more than three (3) pilot projects from each congressional district.
    (b) The department shall approve the pilot projects based on at least the following criteria:
        (1) The relative need for the establishment of a pilot project of this nature as outlined by the applying school corporation, including the number of students who would likely benefit from the pilot project and the prevalence of criminal gang activity within the boundaries of the applying school corporation.
        (2) The overall quality of the applying school corporation's pilot project proposal, including the extent to which the applying school corporation demonstrates a willingness to include as a part of the pilot project appropriate community resources not directly affiliated with the applying school corporation.
        (3) The availability of money in the fund.
    Sec. 12. (a) By June 1 of each school year, each participating

school corporation shall submit to the department a written report, on forms developed by the department, outlining the activities undertaken as part of the school corporation's pilot project.
    (b) By November 1 of each year, the department shall submit a comprehensive report to the governor and the general assembly on the pilot program, including the department's conclusions and recommendations with regard to the impact that the pilot program has made on decreasing criminal gang activity in Indiana. A report submitted under this subsection to the general assembly must be in an electronic format under IC 5-14-6.
    Chapter 31. Professional Development Program
    Sec. 1. As used in this chapter, "plan" refers to an Indiana school academic plan established under IC 20-19-2-11.
    Sec. 2. As used in this chapter, "program" refers to a professional development program.
    Sec. 3. As used in this chapter, "school" includes the following:
        (1) A public school.
        (2) A nonpublic school that has voluntarily become accredited under IC 20-19-2-8.
    Sec. 4. A school shall develop a program as a component of a plan established by the school.
    Sec. 5. The following apply to a program developed under this chapter:
        (1) The program must emphasize improvement of student learning and performance.
        (2) The program must be developed by the committee that develops the school's strategic and continuous improvement and achievement plan under IC 20-31-5-1.
        (3) The program must be integrated with the school's strategic and continuous improvement and achievement plan developed under IC 20-31-5.
    Sec. 6. A school committee shall submit the school's program to the state superintendent for the superintendent's review. The state superintendent:
        (1) shall review the plan to ensure that the program aligns with the school corporation's objectives, goals, and expectations;
        (2) may make written recommendations of modifications to the program to ensure alignment; and
        (3) shall return the program and any recommendations to the school committee.
    Sec. 7. A school committee may modify the program to comply

with recommendations made by the state superintendent under section 6 of this chapter.
    Sec. 8. A school committee shall submit the program as part of its plan to the governing body. The governing body shall:
        (1) approve or reject the program as part of the plan; and
        (2) submit the program to the state board as part of the plan for the school.
    Sec. 9. The state board may approve a school's program only if the program meets the board's core principles for professional development and the following additional criteria:
        (1) To ensure high quality professional development, the program:
            (A) is school based and collaboratively designed, and encourages participants to work collaboratively;
            (B) has a primary focus on state and local academic standards, including a focus on Core 40 subject areas;
            (C) enables teachers to improve expertise in subject knowledge and teaching strategies, uses of technologies, and other essential elements in teaching to high standards;
            (D) furthers the alignment of standards, curriculum, and assessments; and
            (E) includes measurement activities to ensure the transfer of new knowledge and skills to classroom instruction.
        (2) A variety of resources, including needs assessments, an analysis of data regarding student learning needs, professional literature, research, and school improvement programs, are used in developing the program.
        (3) The program supports professional development for all stakeholders.
        (4) The program includes ongoing professional growth experiences that provide adequate time and job embedded opportunities to support school improvement and student learning, including flexible time for professional development that provides professional development opportunities before, during, and after the regular school day and school year.
        (5) Under the program, teacher time for professional development sustains instructional coherence, participant involvement, and continuity for students.
        (6) The program includes effective, research based strategies to support ongoing developmental activities.
        (7) The program supports experiences to increase the effective use of technology to improve teaching and learning.


        (8) The program encourages diverse techniques, including inquiry, reflection, action research, networking, study groups, coaching, and evaluation.
        (9) The program includes a means for evaluating the effectiveness of the program and activities under the program.
    Sec. 10. The state board shall approve an evaluation system for professional development based on recommendations from the department and the professional standards board established by IC 20-28-2-1. The department shall develop a means for measuring successful programs and activities in which schools participate. The measurements must include the following:
        (1) A mechanism to identify and develop strategies to collect multiple forms of data that reflect the achievement of expectations for all students. The data may include the results of ISTEP program tests under IC 20-31-3, IC 20-32-4, IC 20-32-5, and IC 20-32-6, local tests, classroom work, and teacher and administrator observations.
        (2) A procedure for using collected data to make decisions.
        (3) A method of evaluation in terms of educator's practice and student learning, including standards for effective teaching and effective professional development.
    Sec. 11. A school qualifies for a grant from the department when the school's program, developed and submitted under this chapter, is approved by the state board upon recommendation of the department. For purposes of determining whether a school qualifies for a grant under this chapter, the department shall:
        (1) review;
        (2) suggest changes to; and
        (3) recommend approval or rejection of;
a school's program.
    Sec. 12. A school must use a grant received under this chapter to implement all or part of the school's program by funding activities that may include the following:
        (1) Partnership programs with other entities, including professional development schools.
        (2) Teacher leadership academies, research teams, and study groups.
        (3) Workshops, seminars, and site visits.
        (4) Cooperative programs with other school corporations.
        (5) National board certification for teachers.
    Sec. 13. A school may contract with private or public sector

providers to provide professional development activities under this chapter.
    Sec. 14. A grant received under this chapter:
        (1) may be expended only for the conduct of activities specified in the program; and
        (2) must be coordinated with other professional development programs and expenditures of the school and school corporation.
    Sec. 15. A school shall report to the department concerning the use of grants received under this chapter. A school that fails to make a report under this chapter is not eligible for a subsequent grant.
    Chapter 32. Technology Apprenticeship Grants Program
    Sec. 1. As used in this chapter, "program" refers to the technology apprenticeship grant program established by section 2 of this chapter.
    Sec. 2. The technology apprenticeship grant program is established. The department, with the advice of the department of labor established by IC 22-1-1-1, shall administer the program.
    Sec. 3. The department, working with the department of labor, shall develop a grant program to provide grants from the state technology advancement and retention account established by IC 4-12-12-1 for apprenticeships that are designed to develop the skills of apprentices in the area of technology.
    Sec. 4. The department, with the department of labor, shall develop standards for the issuance of grants to businesses and unions that are working to enhance the technology skills of apprentices.
    Sec. 5. Grants issued under this chapter are subject to approval by the budget agency.
    SECTION 5. IC 20-21 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]:
    ARTICLE 21. INDIANA SCHOOL FOR THE BLIND
    Chapter 1. Definitions
    Sec. 1. The definitions in this chapter apply throughout this article.
    Sec. 2. "Board" refers to the Indiana School for the Blind board established by IC 20-21-3-1.
    Sec. 3. "Case conference" refers to the activities of a case conference committee as described in IC 20-35-7-2.
    Sec. 4. "Employee" refers to an employee of the school.


    Sec. 5. "School" refers to the Indiana School for the Blind established by IC 20-21-2-1.
    Sec. 6. "School age individual" refers to an individual who is less than twenty-two (22) years of age.
    Sec. 7. "Superintendent" refers to the superintendent of the school appointed under IC 20-21-2-4.
    Chapter 2. Indiana School for the Blind
    Sec. 1. The Indiana School for the Blind is established as a state educational resource center that includes the following:
        (1) A residential and day school.
        (2) Outreach services.
        (3) Consultative services to local educational agencies to assist the agencies in meeting the needs of locally enrolled students with visual disabilities.
    Sec. 2. The school shall provide for the instruction, education, and care of children who are determined to have a serious visual disability by case conference in accordance with Indiana law and federal law.
    Sec. 3. The school shall provide the following:
        (1) Educational facilities that meet standards established by the state board for regular public schools.
        (2) Educational facilities for school age individuals.
        (3) Educational programs and services to meet those special needs imposed by visual impairment so that a visually disabled student (including a student with multiple disabilities with visual impairment) may achieve the student's maximum ability for independence in academic pursuits, career opportunities, travel, personal care, and home management.
        (4) Training to permit a visually disabled student (including a student with multiple disabilities with visual impairment) to achieve the student's maximum development toward self-support and independence by the provision of services in counseling, orientation and mobility, and other related services.
    Sec. 4. (a) The board shall appoint the superintendent, subject to the approval of the governor. The superintendent serves at the pleasure of the board and may be removed for cause.
    (b) The superintendent appointee must have the following qualifications:
        (1) Be an educator with knowledge, skill, and ability in the appointee's profession.
        (2) Have at least five (5) years experience in instruction of

visually disabled students.
        (3) Have a master's degree or a higher degree.
        (4) Meet the qualifications for an Indiana teacher's certificate in the area of visual disabilities.
        (5) Have a superintendent's license or obtain a superintendent's license not more than two (2) years after appointment by the board.
    Sec. 5. (a) The superintendent, subject to the approval of the board and IC 20-21-4, has complete responsibility for management of the school.
    (b) The superintendent has responsibility for the following:
        (1) Direction of the education, care, safety, and well-being of all students in attendance.
        (2) Evaluation and improvement of the school staff, educational programs, and support services.
        (3) Implementation and administration of the policies, mission, and goals of the school as established by the board.
        (4) Serving as the purchasing agent for the school under IC 5-22-4-8.
        (5) Implementation of budgetary matters as recommended by the board and the department of education under IC 20-21-3-10(b).
        (6) Management of the school's outreach program with local public schools.
        (7) Advocating on behalf of the school under guidelines established by the board.
        (8) Executing contracts on behalf of the school.
    (c) The superintendent is the appointing authority for all employees necessary to properly conduct and operate the school.
    Sec. 6. Subject to:
        (1) the determination by case conference committees based on individualized education programs; and
        (2) the school's admissions criteria adopted by the board under IC 20-21-3-10(a)(4);
the superintendent shall receive as students in the school Indiana residents who are visually disabled school age individuals.
    Sec. 7. (a) A placement review committee for the school is established. The placement review committee consists of one (1) representative of each of the following:
        (1) The board.
        (2) The office of the secretary of family and social services.
        (3) The state superintendent.


    (b) The placement review committee shall meet upon petition of an interested party to review the following:
        (1) Applications to the school denied through the process described in section 6 of this chapter.
        (2) All instances of dismissal from the school for reasons other than graduation, voluntary transition to another educational facility, or voluntary departure from the school.
    (c) The superintendent shall serve as an adviser to the placement review committee. The superintendent shall provide the placement review committee with information and justification for all application denials and dismissals under review.
    (d) The placement review committee may recommend that application denials or dismissals be reconsidered.
    Sec. 8. Upon the presentation of satisfactory evidence showing that:
        (1) there is a school age individual with a visual disability residing in a county;
        (2) the individual is entitled to the facilities of the school;
        (3) the individual's parent wishes the individual to participate in the school's educational program but is unable to pay the expenses of maintaining the individual at the school; and
        (4) the individual is entitled to placement in the school under section 6 of this chapter;
a court with jurisdiction shall, upon application by the county office of family and children, order the individual to be sent to the school at the expense of the county. The expenses include the expenses described in section 10 of this chapter and shall be paid from the county general fund.
    Sec. 9. The compulsory school attendance laws of Indiana apply to all children with visual disabilities. The case conference committee may place a child with a visual disability at the school. The child shall attend the school during the full scholastic term of the school unless the case conference committee changes the placement.
    Sec. 10. (a) The school shall provide board, room, laundry, and ordinary medical attention, including emergency medical attention.
    (b) While a student is enrolled at the school, the student's parent, guardian, or responsible relative or another person shall provide medical, optical, and dental care involving special medication or prostheses.
    (c) While a student is enrolled at the school, the student's parent, guardian, or another responsible relative or person shall

suitably provide the student with clothing and other essentials not otherwise provided under this article.
    (d) The school corporation in which the student has legal settlement shall pay the cost of transportation required by the student's individualized education program under IC 20-35-8-2. However, the student's parent, guardian, or another responsible relative or person shall pay the cost of transportation not required by the student's individualized education program.
    (e) The student's parent, guardian, or another responsible relative or person shall provide the incidental expense money needed by the student.
    Sec. 11. (a) The school may establish an adult education program.
    (b) The school may establish an appropriate fee for services for an adult education program. Federal grants or matching funds may also be used, subject to approval of the budget agency.
    Sec. 12. The school may establish a vocational work-study program.
    Sec. 13. The superintendent may, subject to the approval of the governor and the policies of the board, receive, for the use of the school, gifts, legacies, devises, and conveyances of real or personal property that are made, given, or granted to or for the school.
    Chapter 3. Indiana School for the Blind Board
    Sec. 1. The Indiana School for the Blind board is established.
    Sec. 2. (a) The board consists of the following members:
        (1) Seven (7) individuals appointed by the governor. The individuals appointed under this subdivision are voting members of the board.
        (2) The director of the division of special education of the department. The individual serving under this subdivision serves in a nonvoting, advisory capacity.
        (3) One (1) individual designated by the governor as the governor's representative on the board. The member appointed under this subdivision serves on the board in a nonvoting, advisory capacity.
        (4) One (1) member of the general assembly appointed by the president pro tempore of the senate. The member appointed under this subdivision serves in a nonvoting, advisory capacity.
    (b) When appointing a member to the board under subsection (a)(1), the governor must satisfy the following:
        (1) One (1) voting member of the board must be a parent of at

least one (1) student enrolled or formerly enrolled at the school.
        (2) One (1) voting member of the board must have been a student at the school.
        (3) One (1) voting member of the board must be a:
            (A) representative of a local education agency; or
            (B) special education director.
    (c) Before assuming membership on the board, an individual appointed under subsection (a)(1) must do the following:
        (1) Execute a bond:
            (A) payable:
                (i) to the state; and
                (ii) in an amount and with sureties as approved by the governor; and
            (B) that is conditioned on the faithful discharge of the member's duties.
        (2) Take and subscribe an oath that must be endorsed upon the member's official bond.
The executed bond and oath shall be filed in the office of the secretary of state. The cost of the bond shall be paid from appropriations made to the school.
    Sec. 3. (a) Each voting board member who is not an employee of the state or a political subdivision is entitled to the following:
        (1) The minimum salary per diem provided by IC 4-10-11-2.1 for each board meeting attended by the member.
        (2) Reimbursement for traveling expenses as provided under IC 4-13-1-4 and other expenses actually incurred in connection with the member's duties as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget agency.
Money for payments to board members under this subsection shall be paid from appropriations made to the school.
    (b) The member of the board appointed under section 2(a)(4) of this chapter is entitled to receive the same per diem, mileage, and travel allowances paid to legislative members of interim study committees established by the legislative council. Per diem, mileage, and travel allowances paid under this subsection shall be paid from appropriations made to the legislative council or the legislative services agency.
    Sec. 4. (a) This section applies only to a board member serving under section 2(a)(1) of this chapter.


    (b) The term of a board member is four (4) years.
    (c) The term of a member begins upon appointment by the governor.
    (d) A member may serve after the member's term expires until the term of the member's successor begins.
    (e) The governor may reappoint a member to serve a new term.
    Sec. 5. Whenever there is a vacancy on the board, the governor shall fill the vacancy for the remainder of the unexpired term.
    Sec. 6. (a) At the board's last meeting before July 1 of each year, the board shall elect one (1) member to be chair of the board.
    (b) The member elected chair of the board serves as chair beginning July 1 after elected by the board.
    (c) The board may reelect a member as chair of the board.
    (d) The board shall annually elect one (1) of its members to serve as the secretary for the board.
    Sec. 7. Four (4) voting members of the board constitute a quorum. The affirmative vote of at least four (4) voting members of the board is necessary for the board to take official action other than to do the following:
        (1) Adjourn.
        (2) Meet to hear reports or testimony.
    Sec. 8. The school shall provide staff and administrative support to the board.
    Sec. 9. Subject to IC 20-35-2 and IC 20-21-4, the board has complete policy and administrative control and responsibility for the school.
    Sec. 10. (a) The board shall do the following:
        (1) Establish policies and accountability measures for the school.
        (2) Implement this article.
        (3) Perform the duties required by IC 5-22-4-8.
        (4) Adopt rules under IC 4-22-2 to establish criteria for the admission of visually disabled children, including children with multiple disabilities, at the school.
        (5) Hire the superintendent, who serves at the pleasure of the board.
        (6) Determine the salary and benefits of the superintendent.
        (7) Adopt rules under IC 4-22-2 required by this article.
    (b) The board shall submit the school's biennial budget to the department, which shall review the proposed budget. As part of its review, the department may request and shall receive from the board, in a form as may reasonably be required by the department,

all information used by the board to develop the proposed budget. If, upon review, the department determines that any part of the budget request is not supported by the information provided, the department shall meet with the board at the earliest date possible in order to reconcile the budget request. The department shall submit the reconciled budget to the budget agency and the budget committee.
    Sec. 11. The board may do the following to implement this article:
        (1) Adopt, amend, and repeal bylaws in compliance with this article to govern the business of the board.
        (2) Appoint committees the board considers necessary to advise the board.
        (3) Accept gifts, devises, bequests, grants, loans, and appropriations, and agree to and comply with conditions attached to a gift, devise, bequest, grant, loan, or appropriation.
        (4) Do all acts and things necessary, proper, or convenient to carry out this article.
    Chapter 4. Personnel System
    Sec. 1. Except as provided in this chapter, IC 4-15-1.8 and IC 4-15-2 apply to the employees of the school.
    Sec. 2. The superintendent shall hire directly for those positions as approved by the state personnel department and the board any candidate the superintendent considers qualified to fill a position at the school. The state personnel department, in collaboration with the board, shall annually develop a list of job classifications for positions at the school for which the superintendent may fill a vacancy by hiring a candidate for the position based on a search for qualified candidates outside the state personnel hiring list.
    Sec. 3. (a) The board shall prescribe, subject to the approval of the state personnel department and the budget agency, a salary schedule for the school, using a daily rate of pay for each teacher that must be equal to that of the largest school corporation in the county in which the school is located.
    (b) The board shall prescribe the terms of the annual contract awarded to licensed teachers qualifying for payment under the salary schedule as described in subsection (a).
    (c) The hours of work for all teachers shall be set in accordance with IC 4-15-2.
    SECTION 6. IC 20-22 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,

2005]:
    ARTICLE 22. INDIANA SCHOOL FOR THE DEAF
    Chapter 1. Definitions
    Sec. 1. The definitions in this chapter apply throughout this article.
    Sec. 2. "Board" refers to the Indiana School for the Deaf board established by IC 20-22-3-1.
    Sec. 3. "Case conference" refers to the activities of a case conference committee (as defined in IC 20-35-7-2).
    Sec. 4. "Employee" refers to an employee of the school.
    Sec. 5. "School" refers to the Indiana School for the Deaf established by IC 20-22-2-1.
    Sec. 6. "School age individual" refers to an individual who is less than twenty-two (22) years of age.
    Sec. 7. "Superintendent" refers to the superintendent of the school appointed under IC 20-22-2-4.
    Chapter 2. Indiana School for the Deaf
    Sec. 1. The Indiana School for the Deaf is established as a state educational resource center that includes the following:
        (1) A residential and day school.
        (2) Outreach services.
        (3) Consultative services to local educational agencies to assist the agencies in meeting the needs of locally enrolled students with hearing disabilities.
    Sec. 2. The school shall provide for the instruction, education, and care of children who are determined to have a hearing disability by case conference in accordance with Indiana law and federal law.
    Sec. 3. The school shall provide the following:
        (1) Educational facilities that meet standards established by the state board for regular public schools.
        (2) Educational facilities for school age individuals.
        (3) Educational programs and services to meet those special needs imposed by hearing impairment so that a hearing disabled student (including a student with multiple disabilities with hearing impairment) may achieve the student's maximum ability for independence in academic pursuits, career opportunities, travel, personal care, and home management.
        (4) Training to permit a hearing disabled student (including a student with multiple disabilities with hearing impairment) to achieve the student's maximum development toward

self-support and independence.
    Sec. 4. (a) The board shall appoint the superintendent subject to the approval of the governor. The superintendent serves at the pleasure of the board and may be removed for cause.
    (b) The superintendent appointee must have the following qualifications:
        (1) Be an educator with knowledge, skill, and ability in the appointee's profession.
        (2) Have at least five (5) years experience in instruction of hearing disabled students.
        (3) Have a master's degree or a higher degree.
        (4) Meet the qualifications for an Indiana teacher's certificate in the area of hearing disabilities.
        (5) Have a superintendent's license or obtain a superintendent's license within two (2) years after appointment by the board.
    Sec. 5. (a) The superintendent, subject to the approval of the board and IC 20-22-4, has complete responsibility for management of the school.
    (b) The superintendent has responsibility for the following:
        (1) Direction of the education, care, safety, and well-being of all students in attendance.
        (2) Evaluation and improvement of the school staff, educational programs, and support services.
        (3) Implementation and administration of the policies, mission, and goals of the school as established by the board.
        (4) Serving as the purchasing agent for the school under IC 5-22-4-8.
        (5) Implementation of budgetary matters as recommended by the board and the department under IC 20-22-3-10(b).
        (6) Management of the school's outreach program with local public schools.
        (7) Advocating on behalf of the school under guidelines established by the board.
        (8) Executing contracts on behalf of the school.
    (c) The superintendent is the appointing authority for all employees necessary to properly conduct and operate the school.
    Sec. 6. Subject to:
        (1) the determination by case conference committees based on individualized education programs; and
        (2) the school's admission criteria adopted by the board under IC 20-22-3-10(a)(4);


the superintendent shall receive as students in the school Indiana residents who are hearing disabled school age individuals.
    Sec. 7. (a) A placement review committee for the school is established. The placement review committee consists of one (1) representative of each of the following:
        (1) The board.
        (2) The office of the secretary of family and social services.
        (3) The state superintendent.
    (b) The placement review committee shall meet upon petition of an interested party to review the following:
        (1) Applications to the school denied through the process described in section 6 of this chapter.
        (2) All instances of dismissal from the school for reasons other than graduation, voluntary transition to another educational facility, or voluntary departure from the school.
    (c) The superintendent shall serve as an adviser to the placement review committee. The superintendent shall provide the placement review committee with information and justification for all application denials and dismissals under review.
    (d) The placement review committee may recommend that application denials or dismissals be reconsidered.
    Sec. 8. Upon the presentation of satisfactory evidence showing that:
        (1) there is a school age individual with a hearing disability residing in a county;
        (2) the individual is entitled to the facilities of the school;
        (3) the individual's parent wishes the individual to participate in the school's educational program but is unable to pay the expenses of maintaining the individual at the school; and
        (4) the individual is entitled to placement in the school under section 6 of this chapter;
a court with jurisdiction shall, upon application by the county office of family and children, order the individual to be sent to the school at the expense of the county. The expenses include the expenses described in section 10 of this chapter and shall be paid from the county general fund.
    Sec. 9. The compulsory school attendance laws of Indiana apply to all children with hearing disabilities. The case conference committee may place a child with a hearing disability at the school. The child shall attend the school during the full scholastic term of the school unless the case conference committee changes the placement.
    Sec. 10. (a) The school shall provide board, room, laundry, and ordinary medical attention, including emergency medical attention.
    (b) While a student is enrolled at the school, the student's parent, guardian, or another responsible relative or person shall provide medical, optical, and dental care involving special medication or prostheses.
    (c) While a student is enrolled at the school, the student's parent, guardian, or another responsible relative or person shall suitably provide the student with clothing and other essentials not otherwise provided under this article.
    (d) The school corporation in which the student has legal settlement shall pay the cost of transportation required by the student's individualized education program under IC 20-35-8-2. However, the student's parent, guardian, or another responsible relative or person shall pay the cost of transportation not required by the student's individualized education program.
    (e) The student's parent, guardian, or another responsible relative or person shall provide the incidental expense money needed by the student.
    Sec. 11. (a) The school may establish an adult education program.
    (b) The school may establish an appropriate fee for services for an adult education program. Federal grants or matching funds may also be used, subject to the approval of the budget agency.
    Sec. 12. The school may establish a vocational work-study program.
    Sec. 13. The superintendent may, subject to the approval of the governor and the policies of the board, receive, for the use of the school, gifts, legacies, devises, and conveyances of real and personal property that are made, given, or granted to or for the school.
    Chapter 3. Indiana School for the Deaf Board
    Sec. 1. The Indiana School for the Deaf board is established.
    Sec. 2. (a) The board consists of the following members:
        (1) Seven (7) individuals appointed by the governor. The individuals appointed under this subdivision are voting members of the board.
        (2) The director of the division of special education of the department. The individual serving under this subdivision serves in a nonvoting, advisory capacity.
        (3) One (1) individual designated by the governor as the governor's representative on the board. The member appointed under this subdivision serves on the board in a

nonvoting, advisory capacity.
        (4) One (1) member of the general assembly appointed by the speaker of the house of representatives. The member appointed under this subdivision serves in a nonvoting, advisory capacity.
    (b) When appointing a member to the board under subsection (a)(1), the governor must satisfy the following:
        (1) One (1) voting member of the board must be a parent of at least one (1) student enrolled or formerly enrolled at the school.
        (2) One (1) voting member of the board must have been a student at the school.
        (3) One (1) voting member of the board must be a:
            (A) representative of a local education agency; or
            (B) special education director.
    (c) Before assuming membership on the board, an individual appointed under subsection (a)(1) must do the following:
        (1) Execute a bond:
            (A) payable:
                (i) to the state; and
                (ii) in an amount and with sureties as approved by the governor; and
            (B) that is conditioned on the faithful discharge of the member's duties.
        (2) Take and subscribe an oath that must be endorsed upon the member's official bond.
The executed bond and oath shall be filed in the office of the secretary of state. The cost of the bond shall be paid from appropriations made to the school.
    Sec. 3. (a) Each voting member of the board who is not an employee of the state or a political subdivision is entitled to the following:
        (1) The minimum salary per diem provided by IC 4-10-11-2.1 for each board meeting attended by the member.
        (2) Reimbursement for traveling expenses as provided under IC 4-13-1-4 and other expenses actually incurred in connection with the member's duties as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget agency.
Money for payments to board members under this subsection shall be paid from appropriations made to the school.


    (b) The member of the board appointed under section 2(a)(4) of this chapter is entitled to receive the same per diem, mileage, and travel allowances paid to legislative members of interim study committees established by the legislative council. Per diem, mileage, and travel allowances paid under this subsection shall be paid from appropriations made to the legislative council or the legislative services agency.
    Sec. 4. (a) This section applies only to a board member serving under section 2(a)(1) of this chapter.
    (b) The term of a board member is four (4) years.
    (c) The term of a member begins upon appointment by the governor.
    (d) A member may serve after the member's term expires until the term of the member's successor begins.
    (e) The governor may reappoint a member to serve a new term.
    Sec. 5. Whenever there is a vacancy on the board, the governor shall fill the vacancy for the remainder of the unexpired term.
    Sec. 6. (a) At the board's last meeting before July 1 of each year, the board shall elect one (1) member to be chair of the board.
    (b) The member elected chair of the board serves as chair beginning July 1 after elected by the board.
    (c) The board may reelect a member as chair of the board.
    (d) The board shall annually elect one (1) of its members to serve as the secretary for the board.
    Sec. 7. Four (4) voting members of the board constitute a quorum. The affirmative vote of at least four (4) members of the board is necessary for the board to take official action other than to do the following:
        (1) Adjourn.
        (2) Hear reports or testimony.
    Sec. 8. The school shall provide staff and administrative support to the board.
    Sec. 9. Subject to IC 20-35-2 and IC 20-22-4, the board has complete policy and administrative control and responsibility for the school.
    Sec. 10. (a) The board shall do the following:
        (1) Establish policies and accountability measures for the school.
        (2) Implement this article.
        (3) Perform the duties required by IC 5-22-4-8.
        (4) Adopt rules under IC 4-22-2 to establish criteria for the admission of hearing disabled children, including children

with multiple disabilities, at the school.
        (5) Hire the superintendent, who serves at the pleasure of the board.
        (6) Determine the salary and benefits of the superintendent.
        (7) Adopt rules under IC 4-22-2 required by this article.
    (b) The board shall submit the school's biennial budget to the department, which shall review the proposed budget. As part of its review, the department may request and shall receive from the board, in a form as may reasonably be required by the department, all information used by the board to develop the proposed budget. If, upon review, the department determines that any part of the budget request is not supported by the information provided, the department shall meet with the board at the earliest date possible in order to reconcile the budget request. The department shall submit the reconciled budget to the budget agency and the budget committee.
    Sec. 11. The board may do any of the following to implement this article:
        (1) Adopt, amend, and repeal bylaws in compliance with this article to govern the business of the board.
        (2) Appoint committees the board considers necessary to advise the board.
        (3) Accept gifts, devises, bequests, grants, loans, and appropriations, and agree to and comply with conditions attached to a gift, devise, bequest, grant, loan, or appropriation.
        (4) Do all acts and things necessary, proper, or convenient to carry out this article.
    Chapter 4. Personnel System
    Sec. 1. Except as provided in this chapter, IC 4-15-1.8 and IC 4-15-2 apply to the employees of the school.
    Sec. 2. The superintendent shall hire directly for those positions as approved by the state personnel department and the board any candidate the superintendent considers qualified to fill a position at the school. The state personnel department, in collaboration with the board, shall annually develop a list of job classifications for positions at the school for which the superintendent may fill a vacancy by hiring a candidate for the position based on a search for qualified candidates outside the state personnel hiring list.
    Sec. 3. (a) The board shall prescribe, subject to the approval of the state personnel department and the budget agency, a salary schedule for the school, using a daily rate of pay for each teacher,

that must be equal to that of the largest school corporation in the county in which the school is located.
    (b) The board shall prescribe the terms of the annual contract awarded to licensed teachers qualifying for payment under the salary schedule as described in subsection (a).
    (c) The hours of work for all teachers shall be set in accordance with IC 4-15-2.
    SECTION 7. IC 20-23 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]:
    ARTICLE 23. ORGANIZATION OF SCHOOL CORPORATIONS
    Chapter 1. County Boards of Education
    Sec. 1. (a) As used in this chapter, "board" means a county board of education.
    (b) As used in this chapter, "county superintendent" means the county superintendent of schools.
    (c) The township trustees of each township of each county constitute a county board of education.
    (d) The board shall meet:
        (1) monthly at the office of the county superintendent; and
        (2) at other times as the county superintendent considers necessary.
    (e) The county superintendent:
        (1) is ex officio chairperson of the board; and
        (2) shall act as administrator of the board, carrying out the acts and duties designated by the board.
    (f) The secretary of the board shall keep an accurate record of the minutes of the board. The minutes shall be kept at the county superintendent's office.
    (g) A quorum consists of a number of members equal to the number of township schools under the administration of the county superintendent. However, business may not be transacted unless a majority of the trustees of the township schools under the administration of the county superintendent is present. Business shall be transacted and the acts of the board become effective by a two-thirds (2/3) majority vote of members present on matters coming before the board.
    (h) This chapter may not be construed as granting the board any authority over:
        (1) the selection or employment of any personnel or employees; or


        (2) the purchase of supplies;
in a township school.
    (i) Upon nomination by the county superintendent and with the approval of two-thirds (2/3) of the members, the board shall enter into written contracts with additional administrative and supervisory employees who are necessary for the proper administration and supervision of the county school system and the township schools of the county.
    (j) Except as provided in subsection (i), funds for the salaries of and supplies for persons employed under this section shall be provided in the same manner as the fixing and appropriation of the salaries of the county superintendent.
    (k) The salary or fee of a school attorney related to performing the duties of the attorney's office may in part be paid directly from the school fund.
    (l) The board shall make decisions concerning the general conduct of the schools, which shall be enforced as entered upon the minutes recorded by the secretary of the board.
    (m) The board:
        (1) shall receive through its treasurer from the state money provided and distributed from the state school tuition fund for teaching units for those employed by the board; and
        (2) is considered to fulfill all requirements of a school corporation for receiving the funds from the state school tuition fund.
    (n) The county treasurer is ex officio treasurer of the board, eligible to receive the distribution of funds from the state. Funds received under this section shall be credited to the county revenue fund as a receipt against the estimated expenditures for the salaries of the school employees, for which distribution was made by the state.
    Sec. 2. The board by a majority vote of the members of the board shall appoint a county superintendent of schools who serves for a term of four (4) years. The board shall fill vacancies in this office, in accordance with law, by appointment. An appointment to fill a vacancy under this section expires at the end of the regular term of the county superintendent of schools.
    Sec. 3. This chapter may not be construed to affect the status of or to interfere with a county school corporation created by a board under section 6 of this chapter.
    Sec. 4. (a) A county superintendent of schools shall see that the full amount of interest on the school fund is paid and apportioned.
    (b) When there is a deficit of interest of any school fund or loss of any school fund or revenue by the county, the county superintendent of schools shall see that proper warrants are issued for the reimbursement of the appropriate fund. However, the board of county commissioners may not pay interest that exceeds the amount provided under this chapter to the county superintendent of schools.
    Sec. 5. (a) The official dockets, records, and books of account of the following officers serving in the county must be open at all times to the inspection of the county superintendent of schools:
        (1) Clerks of the courts.
        (2) County auditor.
        (3) County commissioners.
        (4) Prosecuting attorneys.
        (5) Mayors of cities.
        (6) Township trustees.
        (7) School trustees.
    (b) If the county superintendent of schools finds that any of the officers described in subsection (a) have neglected or refused to collect and pay over interest, fines, forfeitures, licenses, or other claims due the school funds and revenues of the state, or have misapplied the school funds or revenues in their possession, the county superintendent of schools shall:
        (1) bring an action in the name of the state of Indiana for the recovery of the money for the benefit of the school fund or revenues; and
        (2) make a report concerning the action to the board of county commissioners and to the state superintendent.
    Sec. 6. (a) The township trustees of each township of each county shall perform all the civil functions performed before March 13, 1947, by the township trustees. The township trustees of the county constitute a county board of education to manage the affairs of the county school corporation created under this chapter in each county.
    (b) School cities and school towns retain independent organization and administration unless abandoned as provided by law. The county school corporation includes all areas not organized on March 13, 1947, into jurisdictions controlled and governed as school cities or school towns.
    (c) The board shall meet:
        (1) at the time the board designates at the office of the county superintendent; and
        (2) at other times and places the county superintendent considers necessary.
    (d) At the first meeting of each year, to be held on the first Wednesday after the first Monday in January, the board shall organize by selecting a president, a vice president, a secretary, and a treasurer from its membership.
    (e) The county superintendent shall call the board into special session. Unless the board elects to have this section remain inoperative, the board shall organize itself. The failure of the county superintendent to call the board into session under this section may not be construed to mean that a county school corporation described in this section is in existence in the county, and a county school corporation may not be brought into existence until the board has met in special session after March 13, 1947, and has taken action to organize itself into a county school corporation, after consideration of the question of whether it should elect to have the provisions of this section remain inoperative. The organization, if affected, must be:
        (1) filed with the county auditor; and
        (2) published by the county auditor in two (2) newspapers of different political persuasions of general circulation throughout the county within ten (10) days after the filing.
The organization is considered to fulfill the requirements of this section for the transacting of public business under this section. The secretary of the board shall keep an accurate record of the minutes of the board, which shall be kept at the county superintendent's office. The county superintendent shall act as administrator of the board and shall carry out such acts and duties as shall be designated by the board. A quorum consists of two-thirds (2/3) of the members of the board.
    (f) The board shall:
        (1) make decisions as to the general conduct of the schools that may be enforced as entered in the minutes recorded by the secretary of the board; and
        (2) exercise all powers exercised before March 13, 1947, by or through township trustees or meetings or petitions of the trustees of the county.
    (g) The board shall appoint a county superintendent who serves a term of four (4) years. The board shall fill vacancies in this office by appointments that expire at the end of the regular term. The county superintendent of schools and other persons employed for administrative or supervisory duties are considered to be

supervisors of instruction.
    (h) The government of the common schools of the county is vested in the board. The board has the authority, powers, privileges, duties, and obligations granted to or required of school cities before March 13, 1947, and school towns and their governing boards generally with reference to the following:
        (1) The purchase of supplies.
        (2) The purchase and sale of buildings, grounds, and equipment.
        (3) The erection of buildings.
        (4) The employment and dismissal of school personnel.
        (5) The right and power to sue and be sued in the name of the county.
        (6) Insuring property and employees.
        (7) Levying and collecting taxes.
        (8) Making and executing a budget.
        (9) Borrowing money.
        (10) Paying the salaries and expenses of the county superintendent and employees as approved by the board.
        (11) Any act necessary to the proper administration of the common schools of the county.
    (i) A county school corporation organized under this section:
        (1) has all right, title, and interest of the predecessor township school corporations terminated under this section to and in all the real, personal, and other property of any nature and from whatever source derived; and
        (2) shall assume, pay, and be liable for all the indebtedness and liabilities of the predecessor school corporation.
    (j) The treasurer, before entering upon the duties of treasurer's office, shall execute a bond to the acceptance of the county auditor in an amount equal to the largest sum of money that will be in the possession of the treasurer at any one (1) time conditioned as an ordinary official bond, with a reliable surety company or at least two (2) sufficient freehold sureties, who may not be members of the board, as surety or sureties on the treasurer's bond.
    (k) The president and secretary shall each give bond, with a surety or sureties described in subsection (j), to be approved by the county auditor, in the sum of one-fourth (1/4) of the amount required of the treasurer under subsection (j). A board may purchase bonds from a reliable surety company and pay for them out of the special school revenue of the board's county.
    (l) The powers set forth in this section may not be considered or

construed to limit the authority of a board to the powers expressly conferred in this section or to restrict or modify any authority granted by any other law not in conflict with this section.
    (m) A board may annually levy the amount of taxes that in the judgment of the board, made a matter of record in the board's minutes, is necessary to produce income sufficient to conduct and carry on the common schools committed to the board.
    (n) A board shall annually levy a sum sufficient to meet all payments of principal and interest as they mature in the year for which the levy is made on the bonds, notes, or other obligations of the board. The board may impose tax levies within statutory limits, and the levies are subject to the same review as school city and school town levies.
    Chapter 2. County Superintendent of Schools
    Sec. 1. (a) The township trustees of each county shall meet at the office of the county auditor on the first Monday in June, 2005, at 10 a.m., and every four (4) years thereafter and elect by ballot a county superintendent for the county. The county superintendent elected by the township trustees shall enter upon the duties of the office on August 16 following and, unless sooner removed, holds the office until a successor is elected and qualified.
    (b) Before entering upon the duties of the office, the county superintendent elected under subsection (a) shall:
        (1) subscribe and take an oath to perform faithfully the county superintendent's duties according to law; and
        (2) file the oath with the county auditor.
    (c) The county superintendent shall execute, in the manner prescribed by IC 5-4-1, a bond conditioned upon the faithful discharge of the superintendent's duties.
    (d) The county auditor shall report the name and address of the person elected under subsection (a) to the state superintendent.
    (e) If a vacancy occurs in the office of county superintendent, the township trustees of the county, on at least three (3) days notice given by the county auditor, shall assemble at 10 a.m., on the day designated in the notice, at the office of the auditor, and fill the vacancy by ballot for the unexpired term.
    (f) In all elections of a county superintendent, the county auditor is the clerk of the election. In case of a tie vote, the auditor shall cast the deciding vote. If one (1) candidate receives a number of votes equal to one-half (1/2) of all the trustees of the county, the county auditor shall then and at all subsequent ballots cast the auditor's vote with the trustees until a candidate receives a

majority of all the votes in the county, including the county auditor. The county auditor shall keep a record of the election in a book kept for that purpose.
    Sec. 2. If there is an election of a county superintendent under section 1(a) of this chapter and the person elected dies or fails, refuses, or neglects to assume the duties of the office on or before August 16 of the year of the election, the township trustees shall:
        (1) as soon as possible declare a vacancy in the office of county superintendent; and
        (2) immediately hold another election to elect a county superintendent under section 1(a) of this chapter.
    Sec. 3. (a) A county superintendent may be impeached for immorality, incompetency, or general neglect of duty, or for acting as agent for the sale of any textbook, school furniture, maps, charts, or other school supplies.
    (b) Impeachment proceedings are governed by the provisions of law for impeaching county officers.
    Sec. 4. (a) The county superintendent has the general superintendence of the schools of the superintendent's county. The county superintendent shall do the following:
        (1) Attend each township school at least one (1) time during each school year, and otherwise as often as possible.
        (2) Preside over and conduct each school's exercises.
        (3) Visit schools while the schools are in session to increase the schools' usefulness and elevate, as far as practicable, the poorer schools to the standard of the best.
        (4) Conduct teachers' institutes and encourage other like associations.
        (5) Labor, in every practicable way, to elevate the standard of teaching and to improve the condition of the schools of the superintendent's county.
    (b) This subsection does not apply to a dispute concerning:
        (1) the legality of school meetings;
        (2) the establishment of schools;
        (3) the location, building, repair, or removal of school buildings;
        (4) the transfer of individuals for school purposes; or
        (5) the resignation or dismissal of teachers.
In all controversies of a general nature arising under the school law, the decision of the county superintendent must first be obtained. An appeal may be taken from the county superintendent's decision to the state superintendent on a written

statement of facts, certified by the county superintendent.
    (c) This chapter may not be construed to change or abridge the jurisdiction of any court in cases arising under the school laws of Indiana. The right of any person to bring suit in any court, in any case arising under the school laws, is not abridged by this chapter.
    (d) The county superintendent:
        (1) shall carry out the orders and instructions of the state board and the state superintendent; and
        (2) constitutes the medium between the state superintendent and subordinate school officers and the schools.
    Sec. 5. City schools that have appointed superintendents are exempt from general superintendence under this chapter upon a written request of the school board of the city.
    Sec. 6. The board of county commissioners shall:
        (1) provide and furnish an office for the county superintendent; and
        (2) allow and pay all costs incurred by the county superintendent for postage, stationery, and records in carrying out this chapter, upon satisfactory proof of the costs incurred submitted by the county superintendent.
The county superintendent shall be paid for the county superintendent's services the sum of four dollars ($4) per day.
    Sec. 7. (a) A person may not hold the office of county superintendent unless the person:
        (1) has at least five (5) years successful experience as a teacher in the public schools; and
        (2) holds, at the time of the person's election, a first or second grade superintendent's license.
    (b) This chapter does not:
        (1) apply to; or
        (2) disqualify;
an incumbent of the office of county superintendent.
    Sec. 8. (a) The county superintendent of schools is entitled to receive as actual traveling expenses in discharging the duties of the superintendent's office a sum of not more than three hundred dollars ($300) per year.
    (b) The county council may annually appropriate an amount sufficient to pay the expenses described in subsection (a).
    (c) The board of county commissioners shall allow an amount appropriated under subsection (b) by a county council.
    Chapter 3. School Townships
    Sec. 1. (a) A township is a school township.


    (b) A school township is a body politic and corporate, by the name and style of " _______ School _______ township of ________ county", according to the name of the township and of the county in which the school township is organized.
    (c) A school township may:
        (1) contract and may be contracted with; and
        (2) sue and be sued;
in the name of the school township in a court with jurisdiction.
    Sec. 2. (a) The school trustees shall:
        (1) take charge of the educational affairs of their respective townships, towns, and cities;
        (2) employ teachers;
        (3) establish and locate conveniently a sufficient number of schools for the education of the children; and
        (4) build, or otherwise provide, suitable houses, furniture, apparatus, and other articles and educational appliances necessary for the thorough organization and efficient management of the schools.
The school trustees may establish and maintain, as near the center of the township as practical, at least one (1) separate graded high school, to which sufficiently advanced students shall be admitted.
    (b) The school trustees of two (2) or more school corporations may establish and maintain one (1) or more joint graded high schools instead of separate graded high schools. If a joint graded high school is established, the participating school corporations are jointly responsible for the care, management, and maintenance of the school.
    (c) A trustee, instead of building a separate graded high school for the trustee's township, shall transfer the students of the trustee's township competent to enter a graded high school to another school corporation.
    (d) A graded high school may not be built unless there are, at the time the graded high school is built, at least twenty-five (25) common graduates of school age residing in the township.
    Sec. 3. School trustees shall authorize a local tuition levy, not to exceed the limit provided by law, that is sufficient to conduct a six (6) month term of school each year. The levy must be based on estimates and receipts from all sources for the previous year. Receipts from the previous year may include amounts received from the state's tuition revenue.
    Sec. 4. (a) School trustees have the care and management of all real and personal property belonging to their respective

corporations for common school purposes. However, congressional township school lands shall be under the care and management of the trustees of the civil township to which the lands belong.
    (b) School trustees shall provide janitorial help considered necessary to properly care for the schools and premises under the school trustees' control.
    (c) Each janitor provided by the trustees under subsection (b) shall be paid from the special school funds of the township.
    Sec. 5. Each township trustee in operating a school lunch program may use either of the following accounting methods:
        (1) The township trustee may supervise and control the program through its school corporation account by establishing a school lunch fund.
        (2) The township trustee may have the program operated by the individual schools of the school corporation through the school corporation's extracurricular account or accounts under IC 20-26-6.
    Sec. 6. Each township trustee in operating a textbook rental program may use either of the following accounting methods:
        (1) The township trustee may supervise and control the program through its school corporation account by establishing a textbook rental fund.
        (2) If textbooks have not been purchased and financial commitments or guarantees for these purchases have not been made by the school corporation, the township trustee may have the program operated by the individual schools of the school corporation through the school corporation's extracurricular account or accounts under IC 20-26-6.
    Sec. 7. (a) If a school lunch fund is established under section 5 of this chapter or a textbook rental fund is established under section 6 of this chapter, the receipts and expenditures for each program shall be made to and from the proper fund without appropriation or the application of other laws relating to the budgets of local governmental units.
    (b) If either program or both programs under sections 5 and 6 of this chapter are operated through the extracurricular account, the township trustee shall approve the amount of the bond of the treasurer of the extracurricular account in an amount the township trustee considers necessary to protect the account for all funds coming into the hands of the treasurer.
    Sec. 8. An educational program under this chapter must include a kindergarten program that is at least a half day program.


    Chapter 4. Community School Corporations
    Sec. 1. It is the sense of the general assembly:
        (1) that the establishment and maintenance of a general, a uniform, and an efficient system of public schools is the traditional and current policy of the state;
        (2) that improvement in the organization of school corporations of the state will:
            (A) provide a more equalized educational opportunity for public school students;
            (B) achieve greater equity in school tax rates among the existing school corporations; and
            (C) provide a more effective use of the public funds expended for the support of the public school system;
        (3) that existing statutes with respect to the combination and the reorganization of school corporations are inadequate to effectuate the needed improvement;
        (4) that modifications in the provisions for the combination and the reorganization of school corporations in this chapter are necessary in order to assure the future maintenance of a uniform and an efficient system of public schools in the state;
        (5) that local electors:
            (A) have an interest in the boundaries of the school corporation in which they reside; and
            (B) will exercise their privileges, as provided in this chapter, to establish an efficient and economical reorganization plan best suited to local conditions; and
        (6) that:
            (A) the state board; and
            (B) the:
                (i) committees; and
                (ii) public officers;
            charged with authority under this chapter;
        will perform their duties wisely in view of the objective of this chapter as set forth in the title of this chapter.
    Sec. 2. As used in this chapter, "attendance unit" or "school unit" means the area of an administrative unit served by a single school.
    Sec. 3. As used in this chapter, "community school corporation" means a school corporation:
        (1) proposed to be formed; or
        (2) formed;
under this chapter, including a united school corporation.
    Sec. 4. As used in this chapter, "county committee" or "committee" means the county committee for the reorganization of school corporations provided for in sections 11 through 17 of this chapter.
    Sec. 5. As used in this chapter, "county superintendent" means the county superintendent of schools.
    Sec. 6. As used in this chapter, "party" includes:
        (1) a person;
        (2) a firm;
        (3) a limited liability company;
        (4) a corporation;
        (5) an association; or
        (6) a municipality;
interested in proceedings under this chapter.
    Sec. 7. As used in this chapter, "reorganization of school corporations" means the formation of new school corporations, the alteration of the boundaries of established school corporations, and the dissolution of established school corporations by:
        (1) the uniting of two (2) or more established school corporations;
        (2) the subdivision of one (1) or more school corporations;
        (3) the transfer to a school corporation of a part of the territory of one (1) or more school corporations;
        (4) the attachment to a school corporation of all or part of the territory of one (1) or more school corporations; and
        (5) any combination of the methods listed in subdivisions (1) through (4).
    Sec. 8. As used in this chapter, "school aid bonds" means bonds of a civil unit of government, the proceeds of which are used for school purposes in any school corporation.
    Sec. 9. As used in this chapter,"united school corporation" means a school corporation that has territory in two (2) or more adjacent counties.
    Sec. 10. State and county officers shall make available to:
        (1) the county committees; and
        (2) the state board;
information from public records in the officers' possession that is essential to the performance by the county committees and the state board of duties set forth in this chapter and IC 20-23-16-1 through IC 20-23-16-11.
    Sec. 11. (a) A county committee for the reorganization of school corporations consists of nine (9) members. In a county that has a

county superintendent:
        (1) the superintendent is an ex officio member of the committee; and
        (2) the remaining members of the committee are appointed by the judge of the circuit court of the county.
In a county that does not have a county superintendent, all the members of the committee are appointed by the judge of the circuit court of the county. Appointments under this subsection are subject to subsections (f) through (h).
    (b) Before the time specified in this section, the judge of the circuit court shall call into a county convention each of the township trustees of the county and the members of each local board of school trustees or board of school commissioners in the county to advise the judge in the selection of the members of the county committee. Except as provided in subsection (c), the judge must give at least ten (10) days notice of the convention by publication in:
        (1) one (1) newspaper of general circulation published in the affected area; or
        (2) if a newspaper is not published in the affected area, in a newspaper having a general circulation in the affected area.
    (c) In a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000), the judge of the circuit court shall publish the notice referred to in subsection (b) in two (2) newspapers of general circulation published in the affected area or having a general circulation in the affected area. The notice must specify:
        (1) the date, time, place, and purpose of the county convention; and
        (2) that the county convention is open to all residents of the county.
    (d) At the county convention, the judge of the circuit court shall:
        (1) explain or have explained; and
        (2) afford an opportunity for attendees to discuss;
the provisions of this chapter.
    (e) Not later than ten (10) days after the date of the county convention, the judge of the circuit court shall select the appointive members of the county committee.
    (f) In a county that has a county board of education, one (1) member of the county committee must be a township trustee recommended by the county board of education.
    (g) In a county in which there is a board of school trustees or a

board of school commissioners, one (1) member of the county committee:
        (1) must be a member of:
            (A) the board of school trustees; or
            (B) the board of school commissioners; and
        (2) may not be a township trustee.
    (h) One (1) member of the county committee must be:
        (1) a superintendent of schools;
        (2) a principal of:
            (A) a school city;
            (B) a school town; or
            (C) a consolidated school or corporation; or
        (3) a superintendent of a community school corporation.
    (i) The members of the county committee not referred to in subsections (f) through (h):
        (1) may not be members of or employed by:
            (A) a board of school trustees; or
            (B) a board of school commissioners;
        (2) may not be members of or employed by a:
            (A) local; or
            (B) county;
        board of education;
        (3) may not be:
            (A) township trustees; or
            (B) employees of township trustees; and
        (4) are appointed without regard to political affiliation.
    (j) The judge of the circuit court shall give written notice immediately to each person selected for appointment to the county committee. Each person selected shall notify the judge of the circuit court in writing not later than ten (10) days after receipt of the notice whether the person accepts the appointment. If a person:
        (1) refuses an appointment; or
        (2) fails to notify the judge of the circuit court of the person's acceptance or refusal of an appointment;
the judge shall select a qualified replacement for appointment to the county committee.
    (k) Not later than thirty (30) days after the date of the county convention, the county committee shall meet to organize and to elect from its membership:
        (1) a chairperson;
        (2) a treasurer; and
        (3) a secretary.


The secretary may be the county superintendent or the superintendent of one (1) of the school corporations in the county.
    (l) The chairperson and the members of the county committee serve without compensation. Subject to approval by the state board, the chairperson of the county committee shall:
        (1) secure necessary office space and equipment;
        (2) engage necessary clerical help; and
        (3) receive reimbursement for any necessary expenses incurred by the chairperson with respect to duties in connection with the county committee.
    (m) Members of the county committee hold office for terms of four (4) years until the reorganization program in the county is completed, subject to replacement as prescribed in this chapter. An appointed member who ceases to be a resident of the county may not continue to serve on a county committee.
    (n) An individual appointed member of a county committee or the appointed members as a group are not disqualified from serving on a county committee because they fail at any time to meet the qualifications for appointment by the judge of the circuit court, other than county residence, if they met the qualifications at the time of their appointments.
    (o) Vacancies shall be filled by the remaining members of the committee without regard for the qualifications for appointment by the judge of the circuit court.
    (p) Meetings of the county committee shall be held:
        (1) upon call of the chairperson; or
        (2) by a petition to hold a meeting signed by a majority of the members of the committee.
    (q) A majority of the committee constitutes a quorum.
    Sec. 12. (a) In formulating a preliminary reorganization plan and with respect to each of the community school corporations that are a part of the reorganization plan, the county committee shall determine the following:
        (1) The name of the community school corporation.
        (2) Subject to subsection (e), a general description of the boundaries of the community school corporation.
        (3) With respect to the board of school trustees:
            (A) whether the number of members is:
                (i) three (3);
                (ii) five (5); or
                (iii) seven (7);
            (B) whether the members are elected or appointed;
            (C) if the members are appointed:
                (i) when the appointments are made; and
                (ii) who makes the appointments;
            (D) if the members are elected, whether the election is at:
                (i) the primary election at which county officials are nominated; or
                (ii) the general election at which county officials are elected; and
            (E) subject to sections 21 and 22 of this chapter, the manner in which members are elected or appointed.
        (4) The compensation, if any, of the members of the regular and interim board of school trustees, which may not exceed the amount provided in IC 20-26-4-6.
        (5) Subject to subsection (f), qualifications required of the members of the board of school trustees, including limitations on:
            (A) residence; and
            (B) term of office.
        (6) If an existing school corporation is divided in the reorganization, the disposition of assets and liabilities.
        (7) The disposition of school aid bonds, if any.
    (b) If existing school corporations are not divided in the reorganization, the:
        (1) assets;
        (2) liabilities; and
        (3) obligations;
of the existing school corporations shall be transferred to and assumed by the new community school corporation of which they are a part, regardless of whether the plan provides for transfer and assumption.
    (c) The preliminary plan must be supported by a summary statement of:
        (1) the educational improvements the plan's adoption will make possible;
        (2) data showing the:
            (A) assessed valuation;
            (B) number of resident students in average daily attendance in grades 1 through 12;
            (C) assessed valuation per student referred to in clause (B); and
            (D) property tax levies;
        of each existing school corporation to which the plan applies;
        (3) the:
            (A) assessed valuation;
            (B) resident average daily attendance; and
            (C) assessed valuation per student;
        data referred to in subdivision 2(A) through 2(C) that would have applied for each proposed community school corporation if the corporation existed in the year the preliminary plan is prepared or notice of a hearing or hearings on the preliminary plan is given by the county committee; and
        (4) any other data or information the county committee considers appropriate or that may be required by the state board in its rules.
    (d) The county committee:
        (1) shall base the assessed valuations and tax levies referred to in subsection (c)(2) through (c)(3) on the valuations applying to taxes collected in:
            (A) the year the preliminary plan is prepared; or
            (B) the year notice of a hearing or hearings on the preliminary plan is given by the county committee;
        (2) may base the resident average daily attendance figures on the calculation of the figures under the rules under which they are submitted to the state superintendent by existing school corporations; and
        (3) shall set out the resident average daily attendance figures for:
            (A) the school year in progress if the figures are available for that year; or
            (B) the immediately preceding school year if the figures are not available for the school year in progress.
The county committee may obtain the data and information referred to in this subsection from any source the committee considers reliable. If the county committee attempts in good faith to comply with this subsection, the summary statement referred to in subsection (c) is sufficient regardless of whether the statement is exactly accurate.
    (e) The general description referred to in subsection (a)(2) may consist of an identification of an existing school corporation that is to be included in its entirety in the community school corporation. If a boundary does not follow the boundary of an existing civil unit of government or school corporation, the description must set out the boundary:
        (1) as near as reasonably possible by:
            (A) streets;
            (B) rivers; and
            (C) other similar boundaries;
        that are known by common names; or
        (2) if descriptions as described in subdivision (1) are not possible, by section lines or other legal description.
The description is not defective if there is a good faith effort by the county committee to comply with this subsection or if the boundary may be ascertained with reasonable certainty by a person skilled in the area of real estate description. The county committee may require the services of the county surveyor in preparing a description of a boundary line.
    (f) A member of the board of school trustees:
        (1) may not serve an appointive or elective term of more than four (4) years; and
        (2) may serve more than one (1) consecutive appointive or elective term.
    Sec. 13. (a) When a county committee has prepared its preliminary written plans for reorganization of school corporations, the committee shall fix dates and places for one (1) or more hearings on the plans and give notice of the hearings to the residents of the school corporations affected and all interested parties. The county committee may hold more than one (1) hearing. The chairperson of the county committee shall give the notice:
        (1) by publication at least one (1) time in one (1) newspaper of general circulation published in the school corporation or corporations; or
        (2) if a newspaper is not published in the school corporation or corporations, in a newspaper having a general circulation in the school corporation or corporations;
at least ten (10) days but not more than thirty (30) days before the date of the hearing.
    (b) At the hearing:
        (1) the county committee shall:
            (A) explain the proposed reorganization plan;
            (B) summarize the educational improvements adoption of the plan will make possible; and
            (C) if the proposed reorganization includes division of an existing school corporation, state the adjustment proposed for:
                (i) property;
                (ii) assets;
                (iii) debts; and
                (iv) other liabilities; and
        (2) any resident of the county or of any affected school corporation in an adjoining county may be heard with reference to:
            (A) the proposed plan; or
            (B) an alternative plan.
    Sec. 14. (a) The county committee shall consider any suggestions made in the public hearing and shall make any revisions or modifications in its written plans as it considers necessary and shall thereupon without any further hearing adopt its final comprehensive reorganization plan, and, within ten (10) days after such adoption, but not later than January 14, 1964, shall submit at least three (3) copies of its comprehensive plan to the state board. However, if a county committee encounters any difficulties in formulating and adopting either its preliminary or comprehensive plan for the reorganization of school corporations, through no lack of diligence upon the part of the committee so that it is unable to submit its plans to the state board within the period specified, the county committee may apply to the state board for an extension of time in which to complete and adopt its preliminary or comprehensive plan. The application may be made during or after the original or any extended period for which an extension is asked.
    (b) The state board may, if the facts and circumstances warrant, grant such extension or extensions as it may see fit.
    Sec. 15. The county committee may submit to the state board for approval, in accordance with section 18 of this chapter, a plan for the reorganization of one (1) or more school corporations without awaiting the completion of a comprehensive plan. The plan becomes an integral part of the comprehensive plan the county committee is required to prepare.
    Sec. 16. The form of a preliminary or final comprehensive plan of reorganization is sufficient if the plan contains in its own terms or by reference the following for each proposed community school corporation:
        (1) The name of the proposed community school corporation.
        (2) A general description of the boundaries of the community school corporation as provided in section 12 of this chapter.
        (3) The number of members of the board of school trustees and whether the members are elected or appointed.
        (4) The manner in which the board of school trustees, other

than the interim board, is elected or appointed.
        (5) If a school corporation is divided as part of the reorganization, the disposition of assets and liabilities of the school corporation.
        (6) The statement required by section 12 of this chapter if that statement is submitted or adopted with the plan.
    Sec. 17. (a) The county committee may form one (1) or more advisory committees.
    (b) An advisory committee may include as members:
        (1) superintendents; or
        (2) principals;
of local school corporations.
    (c) An advisory committee or the individual members of an advisory committee shall:
        (1) help the county committee; and
        (2) furnish information to the county committee;
as requested by the county committee.
    Sec. 18. (a) The state board shall:
        (1) aid the county committees, as required by subsection (b), in carrying out:
            (A) the powers conferred; and
            (B) the duties imposed;
        on the committees by this chapter;
        (2) receive and examine each plan for the reorganization of a school corporation submitted to the state board by a county committee and approve each plan that meets the standards of the state board;
        (3) adopt a set of minimum standards, in furtherance of the policy expressed in section 1 of this chapter, which all proposed community school corporations must meet, insofar as feasible;
        (4) not later than ninety (90) days after receipt of a reorganization plan, hold a public hearing in the county to which the plan mainly applies to allow residents of the affected territory to testify;
        (5) not later than sixty (60) days after the public hearing:
            (A) approve or disapprove in writing all or part of the plan; and
            (B) notify in writing the county committee concerned;
        (6) assist any county committee whose plan does not meet minimum standards in revising the plan and permit the committee to resubmit the plan not later than ninety (90) days

after receipt of notice of nonapproval; and
        (7) adopt rules under IC 4-22-2 for:
            (A) the conduct of its own business; and
            (B) the guidance and direction of county committees;
        to carry out this chapter and IC 20-23-16-1 through IC 20-23-16-11.
    (b) The minimum standards for community school corporations proposed under this chapter or IC 20-23-16-1 through IC 20-23-16-11 must provide for the inclusion of all the area of a county in:
        (1) a school corporation; or
        (2) school corporations;
to furnish efficient and adequate educational opportunity for all students in grades 1 through 12.
    (c) Before the adoption of a preliminary written plan, the county committee and the state board may meet to consider problems encountered by the county committee in formulating a plan. Following the meeting, the state board may waive in writing any specified minimum standard for a designated geographic area on the ground that meeting the standard is not feasible.
    (d) The state board is not required to hold a public hearing on a plan that does not meet the minimum standards required by the state board unless the state board waives the attainment of a minimum standard.
    Sec. 19. (a) If the creation of a community school corporation out of an existing corporation would not involve a change in its territorial boundaries or in its board of school trustees or other governing body, other than a change, if any, in the time of election or appointment or the time the board members take office, and the creation is consistent with the standards set up under this chapter as modified, if any, by the standards set out in this section, the state board may upon its own motion or upon petition of the governing body of the existing school corporation at any time with hearing in the county where such school corporation is located, after notice by publication at least once in one (1) newspaper of general circulation published in the county where such school corporation is located, at least ten (10) but not more than thirty (30) days before the date of a hearing, and without action of the county committee declare such existing school corporation to be a community school corporation by adopting a resolution to this effect. The existing school corporation qualifies as to size and financial resources if it has an average daily attendance of at least

two hundred seventy (270) students in grades 9 through 12 or at least one thousand (1,000) students in grades 1 through 12, and has an assessed valuation per student of at least five thousand dollars ($5,000). For the purposes of this provision, the following terms have the following meanings:
        (1) "County tax" means a property tax that is levied at an equal rate in the entire county in which any school corporation is located, other than a tax qualifying as a countywide tax within the meaning of Acts 1959, c.328, s.2, or any similar statute, and the net proceeds of which are distributed to school corporations in the county.
        (2) "Assessed valuation" of any school corporation means the net assessed value of its real and personal property as of March 1, 1964, adjusted in the same manner as such assessed valuation is adjusted for each county by the department of local government finance under Acts 1949, c.247, s.5, as amended, unless that statute has been repealed or no longer provides for such adjustment. If a county has a county tax, the assessed valuation of each school corporation in the county shall be increased by the amount of assessed valuation, if any, that would be required to raise an amount of money, equal to the excess of the amount distributed to any school corporation from the county tax over the amount collected from the county tax in the school corporation, using total taxes levied by the school corporation in terms of rate, excluding the countywide tax under Acts 1959, c.328, s.2, or any similar statute and including all other taxes levied by or for the school corporation, including but not limited to the county tax, bond fund levy, lease rental levy, library fund levy, special school fund levy, tuition fund levy, capital projects fund levy, and special funds levies. The increased valuation shall be based on the excess distributed to the school corporation from the county tax levied for the year 1964 and the total taxes levied for the year, or if the county tax is first applied or is raised for years after 1964, then the excess distributions and total taxes levied for the year in which the tax is first applied or raised. If the excess distribution and total taxes levied cannot be determined accurately on or before the adoption of the resolution provided in this section, excess distribution and taxes levied shall be estimated by the department of local government finance using the last preceding assessed valuations and tax rates or such other information as that

department determines, certifying the increased assessment to the state board before such time. In all cases, the excess distribution shall be determined upon the assumption that the county tax is one hundred percent (100%) collected and all collections are distributed.
        (3) "Assessed valuation per student" of any school corporation means the assessed valuation of any school corporation divided by its average daily attendance in grades 1 through 12.
        (4) "Average daily attendance" in any school corporation means the average daily attendance of students who are residents in the school corporation and in the particular grades to which the term refers for the school year 1964-1965 in accordance with the applicable regulations of the state superintendent, used in determining average daily attendance in the distribution of the tuition funds by the state to its various school corporations where funds are distributed on such basis and irrespective of whether the figures are the actual resident daily attendance of the school for the school year.
    (b) The community school corporation shall automatically come into being on either July 1 or January 1 following the date of approval, whichever is earlier. The state board shall mail by certified United States mail, return receipt requested, a copy of the resolution certified by county committee's chairperson or secretary to the recorder of the county from which the county committee having jurisdiction of such existing school corporation was appointed and to such county committee. The resolution may change the time of election or appointment of the board of trustees of the school corporation or the time such trustees take office. The recorder shall without cost record the certified resolution in the miscellaneous records of the county. The recording shall constitute a permanent record of the action of the state board and may be relied on by any person. Unless the resolution provides that an interim member of the board of trustees shall not be appointed, the board of trustees in office on the date of the action shall continue to constitute the board of trustees of the school corporation until their successors are qualified, and the terms of their respective office and board membership shall remain unchanged except to the extent that the resolution otherwise provides. For purposes of this chapter and IC 20-23-16-1 through IC 20-23-16-11, a community school corporation shall be regarded as a school corporation

created under section 16 of this chapter.
    Sec. 20. (a) After the state board approves a comprehensive plan or partial plan for reorganization of school corporations as submitted to the state board by a county committee, the state board shall promptly, by certified mail with return receipt requested, give written notice of the approval to:
        (1) the chairperson of the county committee submitting the plan; and
        (2) the judge of the circuit court of the county from which the county committee was appointed.
    (b) After notice is given under subsection (a), a community school corporation proposed by a plan referred to in subsection (a) may be created:
        (1) by petition as provided in this section;
        (2) by election as provided in section 21 of this chapter; or
        (3) under section 22 of this chapter.
    (c) After receipt of the plan referred to in subsection (a) by the county committee and before or after the election described in section 21 of this chapter, a community school corporation proposed by a plan referred to in subsection (a) may be created by a petition. The petition must be signed by at least fifty-five percent (55%) of the registered voters residing in the community school corporation, determined in the manner set out in this section, and filed by any signer or by the county committee with the clerk or clerks of the circuit court or courts of the county or counties where the voters reside. The petition must state that the signers request the establishment of a community school corporation and must contain the following information:
        (1) The name of the proposed community school corporation.
        (2) A general description of the boundaries as set out in the plan.
        (3) The number of members of the board of school trustees.
        (4) The manner in which:
            (A) the permanent board of school trustees; and
            (B) if covered in the plan, the interim board of school trustees;
        will be elected or appointed.
        (5) The compensation, if any, of the members of:
            (A) the permanent board of school trustees; and
            (B) if covered in the plan, the interim board of school trustees.
        (6) The disposition, if any, of assets and liabilities of each

existing school corporation that:
            (A) is included in the proposed community school corporation; and
            (B) has been divided.
        (7) The disposition of school aid bonds, if any.
    (d) The petition referred to in subsection (c) must show:
        (1) the date on which each person signed the petition; and
        (2) the person's residence address on that date.
The petition may be executed in several counterparts, the total of which constitutes the petition described in this section. An affidavit of the person circulating a counterpart must be attached to the counterpart. The affidavit must state that each signature appearing on the counterpart was affixed in the person's presence and is the true and lawful signature of the signer. Each signer on the petition may withdraw the signer's signature from the petition before the petition is filed with the clerk of the circuit court. Names may not be added to the petition after the petition is filed with the clerk of the circuit court.
    (e) After receipt of the petition referred to in subsection (c), the clerk of the circuit court shall make a certification under the clerk's hand and seal of the clerk's office as to:
        (1) the number of signers of the petition;
        (2) the number of signers of the petition who are registered voters residing in:
            (A) the proposed community school corporation; or
            (B) the part of the school corporation located in the clerk's county;
        as disclosed by the voter registration records of the county;
        (3) the number of registered voters residing in:
            (A) the proposed community school corporation; or
            (B) the part of the school corporation located in the clerk's county;
        as disclosed by the voter registration records of the county; and
        (4) the date of the filing of the petition with the clerk.
If a proposed community school corporation includes only part of a voting precinct, the clerk of the circuit court shall ascertain from any means, including assistance from the county committee, the number of registered voters residing in the part of the voting precinct.
    (f) The clerk of the circuit court shall make the certification referred to in subsection (e):


        (1) not later than thirty (30) days after the filing of the petition under subsection (c), excluding from the calculation of that period the time during which the registration records are unavailable to the clerk; or
        (2) within any additional time as is reasonably necessary to permit the clerk to make the certification.
In certifying the number of registered voters, the clerk shall disregard any signature on the petition not made in the ninety (90) days that immediately precede the filing of the petition with the clerk as shown by the dates set out in the petition. The clerk shall establish a record of the certification in the clerk's office and shall return the certification to the county committee.
    (g) If the certification or combined certifications received from the clerk or clerks disclose that the petition was signed by at least fifty-five percent (55%) of the registered voters residing in the community school corporation, the county committee shall publish a notice in two (2) newspapers of general circulation in the community school corporation. The notice must:
        (1) state that the steps necessary for the creation and establishment of the community school corporation have been completed; and
        (2) set forth:
            (A) the number of registered voters residing in the community school corporation who signed the petition; and
            (B) the number of registered voters residing in the community school corporation.
    (h) A community school corporation created by a petition under this section takes effect on the earlier of:
        (1) July 1; or
        (2) January 1;
that next follows the date of publication of the notice referred to in subsection (g).
    (i) If a public official fails to perform a duty required of the official under this chapter within the time prescribed in this section and sections 21 through 24 of this chapter, the omission does not invalidate the proceedings taken under this chapter.
    (j) An action:
        (1) to contest the validity of the formation or creation of a community school corporation under this section;
        (2) to declare that a community school corporation:
            (A) has not been validly formed or created; or
            (B) is not validly existing; or
        (3) to enjoin the operation of a community school corporation;
may not be instituted later than thirty (30) days after the date of publication of the notice referred to in subsection (g).
    Sec. 21. (a) If the chairperson of the county committee does not receive the certification or combined certifications under section 20(f) of this chapter not later than ninety (90) days after the receipt by the county committee of the plan referred to in section 20(a) of this chapter, the judge of the circuit court of the county from which the county committee submitting the plan was appointed shall:
        (1) certify the public question under IC 3-10-9-3; and
        (2) order the county election board to conduct a special election in which the registered voters residing in the proposed community school corporation may vote to determine whether the corporation will be created.
    (b) If:
        (1) a primary election at which county officials are nominated; or
        (2) a general election at which county officials are elected;
and for which the question can be certified in compliance with IC 3-10-9-3 is to be held not later than six (6) months after the receipt by the chairperson of the county committee of the plan referred to in section 20(a) of this chapter, regardless of whether the ninety (90) day period referred to in subsection (a) has expired, the judge shall order the county election board to conduct the special election to be held in conjunction with the primary or general election.
    (c) If a primary or general election will not be held in the six (6) month period referred to in subsection (b), the special election shall be held:
        (1) not earlier than sixty (60) days; and
        (2) not later than one hundred twenty (120) days;
after the expiration of the ninety (90) day period referred to in subsection (a).
    (d) The county election board shall give notice under IC 5-3-1 of the special election referred to in subsection (a).
    (e) The notice referred to in subsection (d) of a special election must:
        (1) clearly state that the election is called to afford the registered voters an opportunity to approve or reject a proposal for the formation of a community school

corporation;
        (2) contain:
            (A) a general description of the boundaries of the community school corporation as set out in the plan;
            (B) a statement of the terms of adjustment of:
                (i) property;
                (ii) assets;
                (iii) debts; and
                (iv) liabilities;
            of an existing school corporation that is to be divided in the creation of the community school corporation;
            (C) the name of the community school corporation;
            (D) the number of members comprising the board of school trustees; and
            (E) the method of selecting the board of school trustees of the community school corporation; and
        (3) designate the date, time, and voting place or places at which the election will be held.
    (f) A special election referred to in subsection (a) is under the direction of the county election board in the county. The election board shall take all steps necessary to carry out the special election. If the special election is not conducted at a primary or general election, the cost of conducting the election is:
        (1) charged to each component school corporation embraced in the community school corporation in the same proportion as the component school corporation's assessed valuation is to the total assessed valuation of the community school corporation; and
        (2) paid:
            (A) from any current operating fund not otherwise appropriated of; and
            (B) without appropriation by;
        each component school corporation.
If a component school corporation is to be divided and its territory assigned to two (2) or more community corporations, the component school corporation's cost of the special election is in proportion to the corporation's assessed valuation included in the community school corporation.
    (g) The county election board shall place the public question on the ballot in the form prescribed by IC 3-10-9-4. The public question must state "Shall the (here insert name) community school corporation be formed as provided in the Reorganization

Plan of the County Committee for the Reorganization of School Corporations?". Except as otherwise provided in this chapter, the election is governed by IC 3.
    (h) If a majority of the votes cast at a special election referred to in subsection (a) on the public question are in favor of the formation of the corporation, a community school corporation is created and takes effect on the earlier of:
        (1) the July 1; or
        (2) the January 1;
that next follows the date of publication of the notice referred to in subsection (d).
    (i) If a public official fails to perform a duty required of the official under this section within the time prescribed in this section, the omission does not invalidate the proceedings taken under this section.
    (j) An action:
        (1) to contest the validity of the formation or creation of a community school corporation under this section;
        (2) to declare that a community school corporation:
            (A) has not been validly formed or created; or
            (B) is not validly existing; or
        (3) to enjoin the operation of a community school corporation;
may not be instituted later than thirty (30) days after the date of the special election referred to in subsection (a).
    Sec. 22. (a) This section applies to a proposed school corporation reorganization plan approved by the state board that involves no change in:
        (1) territorial boundaries; or
        (2) the board of school trustees or other governing body;
of a school corporation, other than a change in the time of election of board members or the time the board members take office.
    (b) A plan referred to in subsection (a) automatically comes into being on the earlier of:
        (1) the July 1; or
        (2) the January 1;
that next follows the date of approval of the plan by the state board.
    (c) If subsection (b) applies:
        (1) an interim board of trustees member may not be appointed;
        (2) the board members in office on the date the plan comes

into being under subsection (b) continue to constitute the governing body of the school corporation until their successors are qualified; and
        (3) the:
            (A) terms of offices; and
            (B) board memberships;
        of the board members remain unchanged except to the extent the plan provides otherwise.
    Sec. 23. (a) If a proposal for the formation of a community school corporation is rejected by the voters at the special election provided for in this chapter, the county committee shall:
        (1) subject to subsection (b), devise a new plan of reorganization considered more acceptable to the electors of the territory affected; or
        (2) subject to subsection (c), direct the county election board or boards to resubmit the same plan rejected by the voters.
    (b) The county committee shall submit a new plan devised under subsection (a)(1) to the state board for the state board's approval not later than six (6) months after the date of the special election at which the proposal was rejected, subject to the same conditions and requirements concerning extensions of time and other matters provided in this chapter. If the new plan is approved by the state board, the procedures of this chapter for the creation of a community school corporation must be followed.
    (c) The county committee may direct the county election board or boards to resubmit the plan referred to in subsection (a)(2) at a special election to be held not later than six (6) months after the special election at which the proposal was rejected. If a primary or general election for state offices is to be held not later than six (6) months after the special election at which the proposal was rejected, the special election must be held in conjunction with the primary or general election. The judge of the circuit court shall give notice by publication of the special election on request of the county committee. The special election is held in the same manner required for the holding of a special election under section 21 of this chapter. Officials concerned shall take all actions necessary to conduct the special election as required under section 21 of this chapter.
    Sec. 24. (a) Except as provided in subsection (b), if a public official fails to perform a duty required under this chapter or IC 20-23-16-1 through IC 20-23-16-11 within the time prescribed in this chapter or IC 20-23-16-1 through IC 20-23-16-11, the

omission does not invalidate any proceedings taken by the official.
    (b) This section:
        (1) does not apply to the time within which a county committee must accept jurisdiction of all or part of a school corporation from another county committee following a petition under IC 20-23-16-1; and
        (2) may not be construed to extend the time within which petitions may be filed by registered voters under this chapter or IC 20-23-16-1 through IC 20-23-16-11.
    Sec. 25. (a) A party aggrieved by the decision of the county committee after the hearing provided for under section 13 of this chapter may:
        (1) appear before the state board when the state board holds public hearings on the reorganization plan involved; and
        (2) state the grievance.
    (b) A party aggrieved by the decision of the state board after the hearing provided for in section 13 of this chapter may appeal within thirty (30) days from the decision to the court in the county on any question of adjustment of:
        (1) property;
        (2) debts; and
        (3) liabilities;
among the school corporations involved. Notice of the appeal shall be given to the chairperson or secretary of the county committee ten (10) days before the appeal is filed with the court.
    (c) The court may:
        (1) determine the constitutionality and the equity of the adjustment or adjustments proposed; and
        (2) direct the county committee to alter the adjustment or adjustments found by the court to be inequitable or violative of any provision of the Constitution of the State of Indiana or of the United States.
An appeal may be taken to the supreme court or the court of appeals in accordance with the rules of civil procedure of the state.
    (d) A determination by the court with respect to the adjustment of:
        (1) property;
        (2) debts; and
        (3) liabilities;
among the school corporations or areas involved does not otherwise affect the validity of the reorganization or creation of a school corporation or corporations under this chapter or

IC 20-23-16-1 through IC 20-23-16-11.
    Sec. 26. (a) This section applies to each community school corporation.
    (b) A community school corporation established under this chapter or IC 20-23-16-1 through IC 20-23-16-11, is a body corporate and politic. The corporation may:
        (1) sue and be sued; and
        (2) acquire, hold, and convey real and personal property necessary to the community school corporation's establishment and operation.
    (c) A corporation has:
        (1) all the powers, rights, duties, and obligations of the school cities of any class in which the school corporation would fall if it were organized as a school city; and
        (2) the additional powers granted school corporations:
            (A) in general; or
            (B) school corporations in the population or other classifications in which the school corporation falls.
    (d) The officers of the governing body are a:
        (1) president;
        (2) secretary;
        (3) treasurer; and
        (4) vice president, if the board of trustees consists of more than three (3) members.
    Sec. 27. (a) Subsections (b) and (c) do not apply to a community school corporation created before March 12, 1965. A community school corporation created before March 12, 1965, shall operate in accordance with the plan under which it was created and the statutes applicable to that plan, as if Acts 1965, c.336, s.4 had not been enacted.
    (b) If the members of a governing body are elected, the members shall be elected in accordance with one (1) of the options set forth in subsection (c) or in accordance with section 35 of this chapter. The options must be set out in the plan with sufficient description to permit the plan to be operable with respect to the community school corporation. The description may be partly or wholly by reference to the applicable option.
    (c) The options described in subsection (b) are the following:
        (1) Members of a governing body:
            (A) may reside anywhere in the school corporation; and
            (B) shall be voted upon by all registered voters living within the school corporation voting at any governing body

member election.
        (2) The community school corporation shall be divided into two (2) or more residence districts with one (1) or more members of the governing body resident within each of the residence districts. The plan may also provide that one (1) or more members of the governing body may reside anywhere in the community school corporation. The plan:
            (A) must set out the number of members to be elected from each district;
            (B) may provide for the election of an equal number of members from each district; and
            (C) must set out the number, if any, to be elected at large without reference to governing body member districts.
        Under this option, all candidates must be voted on by all registered voters of the community school corporation voting at any governing body member election.
        (3) The community school corporation shall be divided into three (3) residence districts of approximately equal population. In a district divided into three (3) residence districts, if:
            (A) the governing body consists of three (3) members, one (1) member must reside in each residence district;
            (B) the governing body consists of five (5) members, two (2) members may not reside in any one (1) residence district; and
            (C) the governing body consists of seven (7) members, at least two (2) shall be elected from each residence district.
        Candidates shall be voted on by all registered voters of the community school corporation voting at any governing body member election.
        (4) The community school corporation shall be divided into two (2) or more electoral districts. Each member:
            (A) serves from one (1) electoral district;
            (B) must be a resident of the district; and
            (C) must be voted upon by the registered voters residing within the electoral district and voting at any governing body member election.
        The plan must set out the number to be elected from each electoral district and may provide for election of an equal number of members from each district. The plan must provide that not less than one (1) less than a majority of the governing body may reside anywhere in the community

school corporation and must be voted upon by all its registered voters voting at any governing body member election.
        (5) The community school corporation consists of one (1) electoral district that must embrace the entire community school corporation from which a majority of the members of the governing body shall be elected by all the registered voters of the community school corporation voting at a governing body member election. The other electoral districts must be subdivisions of the community school corporation. Each of the remaining members of the governing body:
            (A) serves from one (1) of the latter electoral districts;
            (B) must be a resident of that district; and
            (C) must be voted upon by registered voters voting at a governing body member election.
        The plan must set out the number to be elected from each district and may provide for the election of an equal number of members from the district.
        (6) The community school corporation shall be divided into two (2) or more electoral districts. Each member:
            (A) serves from one (1) electoral district;
            (B) must be a resident of that district; and
            (C) must be voted upon only by the registered voters residing within that district who vote at a governing body election.
        The plan must set out the number of members to be elected from each electoral district in the school corporation and may provide for election of an equal number of members from each district.
    Sec. 28. (a) Subsections (b) through (g) do not apply to a community school corporation created before March 12, 1965. A community school corporation created before March 12, 1965, shall operate in accordance with the plan under which it was created and the statutes applicable to that plan, as if Acts 1965, c.336, s.4 had not been enacted.
    (b) If the members of the governing body are to be appointed, they shall be appointed in accordance with one (1) of the options described in subsection (c). The option must be set out in the plan with sufficient description to permit the plan to be operable with respect to each community school corporation. The description may be partly or wholly by reference to the applicable option provided in this section.


    (c) The options described in subsection (b) are the following:
        (1) Members of the governing body may reside anywhere in the community school corporation.
        (2) The community school corporation shall be divided into two (2) or more governing body member districts, any one (1) of which may embrace the entire community school corporation. Each member:
            (A) serves from a particular district; and
            (B) must be a resident of the district.
        The plan must set out the number to be appointed from each district and may provide for an equal number of members from each district.
    (d) The plan, under either option in subsection (c), may provide that the first appointments of the governing body members are for staggered terms of not more than four (4) years. Thereafter, appointments shall be made for terms of four (4) years. All terms of office for appointive governing body members expire June 30 in the applicable year.
    (e) A plan providing for the appointment of members of the governing body must designate the appointing authority. The authority may be the same for each governing body member and must be one (1) or more of the following:
        (1) The judge of the circuit or superior court.
        (2) The city executive.
        (3) The legislative body of a city.
        (4) The board of commissioners of a county.
        (5) The county fiscal body.
        (6) The town legislative body.
        (7) The township executive.
        (8) The township legislative body.
        (9) A township executive and legislative body jointly.
        (10) More than one (1) township executive and legislative body jointly.
    (f) If an appointment is to be made by:
        (1) a body, the appointment must be made by a majority vote of the body in official session;
        (2) township executives, the appointment must be made by a majority vote of the executives taken in joint session; and
        (3) township legislative bodies, the appointment must be made by a majority vote of the total number of township legislative body members by a majority vote of the members, taken in joint session.
    (g) If a member of the governing body, whether of the interim governing body or regular governing body, is to be appointed, and the beginning of the appointive member's term of office coincides with the date an individual assumes the office of the official who is to make the appointment, the appointment shall be made by the latter individual. If the appointing official or body fails to appoint a member of the first governing body within five (5) days after a community school corporation comes into being, or, for members appointed after the first board is appointed, within five (5) days after a member is to take office, the member of the governing body shall be appointed:
        (1) by the judge of the circuit court; or
        (2) in the case of a united school corporation, by the judge of the circuit court of the county having the most students enrolled in the united school corporation.
    Sec. 29. (a) This section applies to each school corporation.
    (b) If a plan provides for the election of members of the governing body of the community school corporation at a primary election, at the time provided by IC 3-8-2 for the filing of notice of candidacies for the primary election following the creation of the community school corporation, nominations for members of the governing body of the community school corporation may be made by a petition signed by the candidates and ten (10) registered voters residing within the boundaries of the community school corporation.
    (c) A petition must be filed with the circuit court clerk of the county that contains the greatest percentage of population of the school corporation. If the plan requires residence in a specified district or voting solely in a specified district for a governing body member office, the petition must clearly state the residence or electoral district from or for which the person is a candidate. If a school corporation is located in more than one (1) county, the circuit court clerk shall, after determining that a petition complies with subsection (b), promptly certify to each circuit court clerk of a county in which the school corporation is located, the names of the candidates to be placed on the ballot.
    (d) If a plan provides for an election of members of the governing body at a general election, the filing of notice of candidates must be made in the manner provided for filing at primary elections under this section. The filing must be made within the same period before the general election as would have been required before the primary election had the election been

held at the latter time.
    (e) All nominations shall be listed for each office in the form prescribed by IC 3-10-1-19 or IC 3-11-2 but without party designation. Voting and tabulation of votes shall be conducted in the same manner as voting and tabulation in primary elections are conducted. The precinct election boards serving at each primary election in each county shall conduct the election for governing board members. If a school corporation is located in more than one (1) county, each county election board shall print the ballots required for voters in that county to vote for candidates for members of the board of school trustees of the school corporation.
    (f) If the plan provides that the governing body shall be elected by all the voters of the community school corporation, candidates shall be placed on the ballot in the form prescribed by IC 3-10-1-19 or IC 3-11-2 without party designation. Candidates elected shall be those having the greatest number of votes.
    (g) If the plan provides that members of the governing body are to be elected from residence districts by all voters in the community school corporation, nominees for the governing body shall be placed on the ballot in the form prescribed by IC 3-10-1-19 or IC 3-11-2 by residence districts without party designation. The ballot must state the:
        (1) number of members to be voted upon; and
        (2) maximum number that may be elected from each residence district as provided in the plan.
A ballot is not valid if a voter votes for more than the maximum number of members that are determined under subdivision (2). Candidates having the greatest number of votes are elected. However, if more than the maximum number that may be elected from a residence district are among those having the greatest number of votes, the lowest of those candidates from the residence districts in excess of the maximum number shall be eliminated in determining the candidates who are elected.
    (h) If the plan provides that members of the governing body are to be elected from electoral districts solely by the voters of each district, nominees residing in each electoral district shall be placed on the ballot:
        (1) in the form prescribed by IC 3-10-1-19 or IC 3-11-2; and
        (2) without party designation.
The ballot must state the number to be voted on from the electoral district. Candidates residing in the electoral district having the greatest number of votes are elected.


    Sec. 30. (a) This section applies to each school corporation.
    (b) If the governing body is to be elected at the primary election, each registered voter may vote in the governing body election without otherwise voting in the primary election.
    (c) If a tie vote occurs among any of the candidates:
        (1) the judge of the circuit court; or
        (2) in case of a united school corporation, the judge of the circuit court of the county having the most students enrolled in the united school corporation;
shall select one (1) of the candidates, who shall be declared and certified elected.
    (d) If after the first governing body takes office, there is a vacancy on the governing body for any reason, including the failure of the sufficient number of petitions for candidates being filed, whether the vacating member was elected or appointed, the remaining members of the governing body, whether or not a majority of the governing body, shall by a majority vote fill the vacancy by appointing a person from within the boundaries of the community school corporation to serve for the term or balance of the term. An individual appointed under this subsection must possess the qualifications provided for a regularly elected or appointed governing body member filling the office. If:
        (1) a tie vote occurs among the remaining members of the governing body; or
        (2) the governing body fails to act within thirty (30) days after any vacancy occurs;
the judge of the circuit court in the county where the majority of registered voters of the school corporation reside shall make the appointment.
    (e) A vacancy in the governing body occurs if a member ceases to be a resident of any community school corporation. A vacancy does not occur when the member moves from a district of the school corporation from which the member was elected or appointed if the member continues to be a resident of the school corporation.
    (f) At the first primary or general election in which members of the governing body are elected:
        (1) a simple majority of the candidates elected as members of the governing body who receive the highest number of votes shall be elected for four (4) year terms; and
        (2) the balance of the candidates elected as members of the governing body receiving the next highest number of votes

shall be elected for two (2) year terms.
Thereafter, all school board members shall be elected for four (4) year terms.
    (g) Governing body members elected:
        (1) in November take office and assume their duties on January 1 or July 1 after their election, as determined by the board of school trustees before the election; and
        (2) in May take office and assume their duties on July 1 after their election.
    Sec. 31. (a) This section applies to each school corporation.
    (b) If the plan provides for the election of members of the governing body of the community school corporation:
        (1) the judge of the circuit court; or
        (2) in the case of a united school corporation, the judge of the circuit court of the county having the most students enrolled in the united school corporation;
shall appoint interim governing body members in accordance with the plan approved by the county committee and the state board.
    (c) The members of the governing body appointed serve until their successors are elected and qualified.
    (d) Instead of appointment, the plan may provide for an alternative method of appointing the members of the interim governing body of a community or united school corporation. The appointment under this subsection must be made by one (1) or more of the class of officials listed in section 28(e) of this chapter.
    Sec. 32. (a) This section applies to each school corporation.
    (b) The governing body does not assume its powers and duties until the date the community school corporation becomes effective. For thirty (30) days before the date on which the governing body of a community school corporation assumes office, an existing school corporation having territory that will be included within the boundaries of a community school corporation may not contract or place the school corporation under any further obligations, except upon written approval of the county committee.
    (c) The transfer of:
        (1) powers;
        (2) duties;
        (3) property rights;
        (4) other assets;
        (5) liabilities;
        (6) contracts both as to rights and obligations; and
        (7) all else connected with the transfer of authority from

existing school corporations to the community school corporation;
takes place at the time of the formation and creation of the community school corporation and are vested in the community school corporation.
    Sec. 33. (a) This section applies to each school corporation.
    (b) The governing body shall:
        (1) divide the community school corporation into the proper attendance units;
        (2) adopt rules with respect to the units; and
        (3) provide adequate and practical transportation if a reorganization plan provides for the transportation of students from one (1) part of a community school corporation to a central point.
    Sec. 34. (a) This section applies to a community school corporation located in a county containing a consolidated city.
    (b) The same method used to cast votes for all other offices for which candidates have qualified to be on the election ballot must be used for the school board offices on the election ballot.
    Sec. 35. (a) The governing body of a school corporation may be organized under this section.
    (b) The governing body consists of seven (7) members, elected as follows:
        (1) Four (4) members elected from districts, with one (1) member serving from each electoral district. A member elected under this subdivision must be:
            (A) a resident of the electoral district from which the member is elected; and
            (B) voted upon by only the registered voters residing within the electoral district and voting at a governing body election.
        (2) Three (3) members, who are voted upon by all the registered voters residing within the school corporation and voting at a governing body election, elected under this subdivision. The governing body shall establish three (3) residential districts as follows:
            (A) One (1) residential district must be the township that has the greatest population within the school corporation.
            (B) Two (2) residential districts must divide the remaining area within the school corporation.
        Only one (1) member who resides within a particular residential district established under this subdivision may

serve on the governing body at a time.
    (c) A member of the governing body who is:
        (1) elected from an electoral or a residential district; or
        (2) appointed to fill a vacancy from an electoral or a residential district;
must reside within the boundaries of the district the member represents.
    (d) A vacancy on the governing body shall be filled by the governing body as soon as practicable after the vacancy occurs. A member chosen by the governing body to fill a vacancy holds office for the remainder of the unexpired term.
    (e) The members of the governing body serving at the time a plan is amended under this section shall establish the electoral and residential districts described in subsection (b).
    (f) The electoral districts described in subsection (b)(1):
        (1) shall be drawn on the basis of precinct lines;
        (2) may not cross precinct lines; and
        (3) as nearly as practicable, be of equal population, with the population of the largest exceeding the population of the smallest by not more than fifteen percent (15%).
    (g) The residential districts described in subsection (b)(2) may:
        (1) be drawn in any manner considered appropriate by the governing body; and
        (2) be drawn along township lines.
    (h) The governing body shall certify the districts established under subsections (f) and (g) to:
        (1) the state board; and
        (2) the county election board of the county in which the school corporation is located.
    (i) The governing body shall designate:
        (1) three (3) of the districts established under this section to be elected at the first school board election that occurs after the effective date of the plan; and
        (2) the remaining four (4) districts to be elected at the second school board election that occurs after the effective date of the plan.
    Sec. 36. (a) This section applies to a school corporation located in a county containing a consolidated city.
    (b) The same method used to cast votes for all other offices for which candidates have qualified to be on the election ballot must be used for the governing body offices on the election ballot.
    Sec. 37. (a) A consolidation or reorganization of a school

corporation does not become effective until the consolidation or reorganization is approved by the state board.
    (b) Except to the extent set forth in subsection (a), this chapter shall be construed as being supplemental to all laws appertaining to public schools in Indiana.
    Sec. 38. (a) Whenever an entire county has been reorganized under this chapter or IC 20-23-16-1 through IC 20-23-16-11, by the creation of a community school corporation or corporations for the entire county, the county committee shall be dissolved. Where the term of any member of a county committee expires before the time of dissolution of the county committee, the judge shall fill a vacancy by replacement or reappointment for a term of four (4) years in accordance with sections 11 through 15 of this chapter and IC 20-23-16-2. In the event the membership of an entire county committee shall at any time be vacant by resignation or otherwise, the judge shall appoint a new county committee in accordance with sections 11 through 15 of this chapter or IC 20-23-16-2.
    (b) After a county committee has been dissolved, if the local governing body or the state superintendent considers further reorganization necessary to improve educational opportunities for the students in the county, the local school trustees or the state superintendent shall submit proposed changes to the state board. If the changes proposed by the local governing body or the state superintendent are approved by the state board, the proposal becomes effective under the procedure specified in sections 20 through 24 of this chapter so far as the same are applicable.
    Sec. 39. A county committee formed under this chapter and the state board may accept donations of money or other articles of value to assist in financing the studies authorized by this chapter.
    Sec. 40. (a) To defray the expenses of the county study, a county committee may prepare and submit a budgetary request to the county council on or before August 1 of each year during the life of the committee. The county council may, upon receipt of a request, establish a uniform ad valorem tax levy on all real and personal property within the county, in an amount sufficient to raise an amount of money not to exceed the amount of the budget request.
    (b) The county committee may request from the county council sufficient sums of money necessary to defray legal expenses incident to placing the county plan in operation.
    Sec. 41. The state board of accounts shall prescribe accounting forms to be used by the county committees and shall audit the financial records of each county committee at least once every

three (3) years.
    Sec. 42. (a) The state board shall enforce the rules compiled under IC 20-19-2-8 that establish procedures and standards for the construction of, addition to, or remodeling of school facilities. The commission shall apply these rules equally to facilities to be used or leased by both community school corporations and school corporations that are not community school corporations.
    (b) A school building or an addition to a school building may not be constructed and a lease of a school building for a term of more than one (1) year may not be entered into by a school corporation other than a community school corporation or by two (2) or more school corporations jointly without the approval of the state board. For purposes of this subsection, "community school corporation" does not include a community school corporation governed by an interim board of school trustees.
    (c) An action to question any approval referred to in this section or to enjoin school construction or the performance of any of the terms and conditions of a lease or the execution, sale, or delivery of bonds, on the ground that any approval should not have been granted, may not be instituted at any time later than fifteen (15) days after approval has been granted.
    Sec. 43. A plan approved by:
        (1) a county committee or committees; and
        (2) the state board before May 1, 1984;
may provide for or be amended to provide for delaying the commencement of the terms of some members of the governing body for one (1) year and for extending the terms of their predecessors for one (1) year where this is necessary to prevent a majority of the board from taking office at any one time.
    Sec. 44. (a) This section applies only to a school corporation with territory in a county having a population of more than one hundred forty-eight thousand (148,000) but less than one hundred seventy thousand (170,000).
    (b) This section applies if there is a:
        (1) tie vote in an election for a member of the governing body of a school corporation; or
        (2) vacancy on the governing body of a school corporation.
    (c) Notwithstanding any other law, if a tie vote occurs among any of the candidates for the governing body or a vacancy occurs on the governing body, the remaining members of the governing body, even if the remaining members do not constitute a majority of the governing body, shall by a majority vote of the remaining

members:
        (1) select one (1) of the candidates who shall be declared and certified elected; or
        (2) fill the vacancy by appointing an individual to fill the vacancy.
    (d) An individual appointed to fill a vacancy under subsection (c)(2):
        (1) must satisfy all the qualifications required of a member of the governing body; and
        (2) shall fill the remainder of the unexpired term of the vacating member.
    (e) If a tie vote occurs among the remaining members of the governing body or the governing body fails to act within thirty (30) days after the election or the vacancy occurs, the fiscal body (as defined in IC 3-5-2-25) of the township in which the greatest percentage of population of the school district resides shall break the tie or make the appointment. A member of the fiscal body who was a candidate and is involved in a tie vote may not cast a vote under this subsection.
    (f) If the fiscal body of a township is required to act under this section and a vote in the fiscal body results in a tie, the deciding vote to break the tie vote shall be cast by the executive.
    Sec. 45. A community school corporation created or organized under this chapter may change its name at any time by adoption of a resolution by majority vote of the governing body.
    Chapter 5. Community School Corporations: Territory Annexations
    Sec. 1. As used in this chapter,"acquiring school corporation" means the school corporation that acquires territory as a result of annexation.
    Sec. 2. As used in this chapter, "annex", "annexing", "annexation", and "school annexation" mean any action whereby the boundaries of a school corporation are changed so that additional territory, constituting all or a part of any one (1) or more other school corporations, is transferred to the school corporation.
    Sec. 3. As used in this chapter, "annexed territory" means the territory acquired by an acquiring school corporation as a result of annexation from a losing school corporation.
    Sec. 4. As used in this chapter, "losing school corporation" means a school corporation that loses territory to an acquiring school corporation by annexation.


    Sec. 5. As used in this chapter, "resolution" of a school corporation means a resolution adopted by the school corporation's governing body.
    Sec. 6. As used in this chapter, "school corporation" means:
        (1) a school corporation created under IC 20-23-4; and
        (2) any other school corporation established under any other statute of the state of Indiana, which has common boundaries with any school corporation or corporations formed under IC 20-23-4.
The term does not include any public school corporation located in whole or any part in a county containing a consolidated city.
    Sec. 7. Subject to the limitations and procedures in this chapter, a school corporation may annex territory from any other school corporation by resolutions of the acquiring and losing school corporations under section 8 of this chapter.
    Sec. 8. An annexation may be effected by any school corporation as follows:
        (1) The acquiring and the losing school corporations shall each adopt a substantially identical annexation resolution. The resolution must contain the following items:
            (A) The name of the acquiring school corporation, which may differ from the name of the acquiring corporation at the time of the adoption of the resolution, after the effective date.
            (B) A description of the annexed territory. The description shall as near as reasonably possible:
                (i) be by streets and other boundaries known by common names; and
                (ii) does not have to be by legal description unless the additional description is necessary to identify the annexed territory.
            A notice is not defective if there is a good faith compliance with this section and if the area designated may be ascertained with reasonable certainty by persons skilled in the area of real estate description.
            (C) The time the annexation takes place.
            (D) Any terms and conditions facilitating education of students in the:
                (i) annexed territory;
                (ii) losing school corporation; or
                (iii) acquiring school corporation.
            The terms may provide for the continued attendance by

students in the annexed territory at schools in the losing school corporation for specified periods after annexation on a transfer basis. If students will continue attendance in schools in the losing school corporation, transfer tuition for the students shall be paid by the acquiring school corporation to the losing school corporation:
                (i) using the method; and
                (ii) at the rates;
            provided by the Indiana statutes governing the computation and payment of transfer tuition costs.
            (E) Disposition of assets and liabilities of the losing school corporation to the acquiring school corporation.
            (F) Allocation between the acquiring and losing school corporations of subsequently collected school taxes levied on property in the annexed territory.
            (G) The amount, if any, to be paid by the acquiring school corporation to the losing school corporation on account of property received from the losing school corporation.
            (H) Dispositions, allocations, and amounts transferred under this subsection must be equitable.
        (2) After the adoption of the resolution, notice shall be given by publication in both the acquiring school corporation and the losing school corporation setting out:
            (A) the text of the resolution; and
            (B) a statement that the resolution has been adopted and that a right of remonstrance exists as provided in this chapter.
        (3) It is not necessary to set out the remonstrance provisions of this chapter. A general reference to a right of remonstrance with a reference to this chapter is sufficient.
        (4) The annexation takes effect:
            (A) within thirty (30) days after publication; or
            (B) at the time provided in the resolution;
        whichever is later, unless within the period during which a remonstrance may be filed a remonstrance is filed in the circuit or superior court of the county where the annexed territory or any part of the annexed territory is located, by registered voters residing in the losing school corporation at least equal in number to the greater of ten percent (10%) of the number of registered voters residing in the losing school corporation or fifty-one percent (51%) of the number of registered voters residing in the annexed territory.


    Sec. 9. (a) The notice by publication required by section 8 of this chapter shall be made:
        (1) two (2) times;
        (2) a week apart; and
        (3) in two (2) daily newspapers of general circulation, published in the English language and of general circulation in the acquiring school corporation and in the losing school corporation.
    (b) If there is only one (1) or no daily newspaper in either school corporation, a weekly newspaper may be used.
    (c) If there is only one (1) daily or weekly newspaper, publication in the newspaper is sufficient.
    (d) If a newspaper is of general circulation in both the acquiring school corporation and the losing school corporation, publication in the newspaper qualifies as one (1) of the required publications in the acquiring school corporation and the losing school corporation.
    (e) Publication may be made jointly by the losing school corporation and acquiring school corporation.
    (f) The remonstrance period runs from the second publication.
    Sec. 10. (a) A remonstrance under section 8 of this chapter must be in the following or a substantially similar form:
        "The undersigned hereby remonstrate against the annexation of the following described territory situated in ______ County, Indiana, whereby it would be transferred from ______ (the losing corporation) to _______ (the acquiring corporation):
    (Description of the annexed territory sufficient to identify it.)".
The remonstrance may be filed in any number of counterparts. Each counterpart shall have attached to it the affidavit of the person circulating it that each signature appearing on the remonstrance was affixed in the presence of the person circulating the petition and is the true and lawful signature of the person who made the signature. The person who makes the affidavit does not have to be one (1) of the persons who signs the counterpart to which the affidavit is attached. The remonstrance must be accompanied by a complaint filed by one (1) or more of the remonstrators (who shall be treated as a representative of the entire class of remonstrators) and signed by the remonstrator or the remonstrator's attorney, stating the reasons for the remonstrance. The reasons for the remonstrance are limited to the following:
        (1) There is a procedural defect in the manner in which the annexation is carried out that is jurisdictional.
        (2) The annexed territory does not form a compact area abutting the acquiring corporation.
        (3) The benefits to be derived from the annexation are outweighed by the detriments, taking into consideration the respective benefits and detriments to the schools and of the students residing in the acquiring school corporation, the losing school corporation, and the annexed territory.
        (4) The:
            (A) disposition of assets and liabilities of the losing school corporation;
            (B) allocation of school tax receipts between the acquiring school corporation and the losing school corporation; and
            (C) amount to be paid by the acquiring school corporation as set out in the annexation resolution;
        are inequitable. Except with respect to subdivision (1), the allegations may be made in the statutory language.
    (b) The plaintiff in a remonstrance under section 8 of this chapter must be the person whose name appears on the complaint. The defendants in a remonstrance under section 8 of this chapter shall be both the acquiring school corporation and the losing school corporation. Service of process shall be made on the defendants as in other civil actions.
    (c) To determine if a petition was timely filed, the time of filing is the time of filing with the clerk without regard to the time of issuance of the summons. If the thirtieth day falls on Sunday, a holiday, or any other day when the clerk's office is not open, the time shall be extended to the next day when the office is open.
    (d) The issues in a remonstrance under section 8 of this chapter are made up by the complaint. The allegations in the complaint shall be treated as denied by each defendant. A responsive pleading may not be filed except that any defendant may, if appropriate, file a motion to dismiss the remonstrance on the ground that:
        (1) the requisite number of qualified remonstrators have not signed the petition;
        (2) the remonstrance was not timely filed; or
        (3) the complaint does not state a cause of action.
A responsive pleading to this motion may not be filed. With respect to a motion under subdivisions (1) and (2), the allegations of the pleading shall be treated as denied by the remonstrators. To determine whether there are the requisite number of qualified

remonstrators, a person may not withdraw the person's name after a remonstrance has been filed or add the person's name to the remonstrance. Any person may, however, at the trial of the cause and in support or derogation of the substantive matters in the complaint, introduce into evidence a verified statement that the person wishes the person's name added to or withdrawn from the remonstrance. The court may either hear all or a part of the matters raised by the motion to dismiss separately or may consolidate for trial all or a part of the matters with the matters relating to the substance of the case. A complaint may not be dismissed for failure to state a cause of action if a fair reading of the complaint supports one (1) of the grounds for remonstrance provided in subsection (a). The court may permit an amendment of the complaint if the amendment does not state a new ground of remonstrance.
    (e) The trial of a remonstrance shall be conducted as other civil cases by the court without the intervention of a jury on the issues raised by the complaint or a motion to dismiss, or both. A change of venue from a judge may be permitted. A change of venue from the county may not be permitted. The court shall expedite the hearing of the case. The court's judgment, except with respect to any matter raised under subsection (a)(4), shall be either that:
        (1) the annexation shall take place;
        (2) the annexation shall not take place; or
        (3) the remonstrance shall be dismissed.
If the court finds that the remonstrators have proved any of the reasons for the remonstrance described in subsection (a)(1) through (a)(4), the court's judgment shall be that the annexation may not take place. Unless the remonstrators have proved at least one (1) of the reasons for a remonstrance described in subsection (a)(1) through (a)(4), the court's judgment shall be that the annexation shall take place. With respect to any matter raised under subsection (a)(4), the court's judgment may be either that the disposition, allocation, and amount set out in the annexing resolution is equitable or that it is inequitable. In the latter event, the court in the court's judgment shall provide for an equitable disposition, allocation, and amount. Costs shall follow judgment. Appeals may be taken from any judgment of the court in the same manner as appeals are taken in other civil cases.
    Sec. 11. (a) Within sixty (60) days after the annexation takes place, the governing body of the acquiring school corporation and losing school corporation shall adopt a plan determining the

manner in which the governing body shall be constituted. The plan shall be adopted in accordance with the requirements and procedures of IC 20-23-8, except as set out in subsection (b).
    (b) The adoption of a plan by the governing body in accordance with IC 20-23-8-10 and its submission to the state board under IC 20-23-8-15 are the only procedures required when an existing plan is changed as follows:
        (1) All governing body members are elected at large, and there are no governing body member residency districts.
        (2) Governing body members are elected from governing body member residency districts, and the annexed territory is added to or deleted from one (1) or more districts.
        (3) A governing body member is appointed from a given area or district, and the annexed territory is added to or deleted from one (1) or more districts or areas.
        (4) A governing body member is elected solely by the voters in a school governing body member district, but the addition or deletion of the annexed territory to or from an existing district does not constitute a denial of equal protection of the laws.
If a school corporation elects or appoints members of its governing body both from a school governing body member district encompassing the entire school corporation and from smaller districts, the governing body of the acquiring school corporation shall add the annexed territory both to the district consisting of the entire school corporation and to one (1) or more smaller districts. In a comparable situation, the losing school corporation shall delete the annexed territory both from the district consisting of the entire school corporation and from any smaller district or districts. The change in the plan becomes effective upon its approval by the state board. The application of this subsection does not limit the initiation of, or further changes in, any plan under IC 20-23-8.
    Sec. 12. (a) With respect to whether the disposition of the assets and liabilities of the losing school corporation, allocation of school tax receipts, and the amount to be paid by the acquiring school corporation is equitable, the court, subject to subsection (b), shall be satisfied that the annexing resolution conforms substantially to the following standards:
        (1) The acquiring school corporation shall assume a part of all installments of principal and interest on any indebtedness of the losing school corporation (other than current obligations or temporary borrowing) that fall due after the end of the last

calendar year in which the losing school corporation is entitled to receive current tax receipts from property tax levies on the property of the annexed territory. The part consists of the following:
            (A) All installments relating to any indebtedness incurred in connection with the acquisition or construction of any building located in the annexed territory.
            (B) A proportion of all installments relating to any other indebtedness that is the same proportion as the valuation of the real property in the annexed territory bears to the valuation of all the real property in the losing school corporation, as the indebtedness is assessed for general taxation immediately before annexation.
        (2) The acquiring school corporation shall make the payments and assume the obligations provided for a school corporation acquiring territory or a building or buildings under IC 21-5-10.
        (3) Unless the losing school corporation consents to some other allocation, the part of the general fund money collected by the losing school corporation may not be allocated to the acquiring school corporation in a greater amount than would be awarded if the losing school corporation and the acquiring school corporation were respectively the "original school corporation" and the "annexing school corporation" within the meaning of IC 20-23-16, using the method provided in IC 20-23-16 for allocating the special school and tuition fund money.
    (b) Standards under subsection (a) may not be applicable to the extent the losing school corporation and acquiring school corporation otherwise agree in a situation where all or a majority of the students in the annexed territory have been transferred from the losing school corporation to the acquiring school corporation for the five (5) school years immediately preceding the transfer. The agreement between school corporations may not prejudice the rights of bondholders or lessors whose rights against the losing school corporation and acquiring school corporation shall, upon enforcement, be allocated between the losing school corporation and acquiring school corporation in accordance with subsection (a)(1) and (a)(2).
    Sec. 13. (a) If a remonstrance is filed on grounds other than the grounds in section 10(a)(4) of this chapter, annexation does not become effective until final judgment in the remonstrance suit.

Judgment may not be considered to be final until:
        (1) the time for taking an appeal has expired; or
        (2) final judgment in the appeal is entered.
A judgment of the trial court dismissing a remonstrance is a final judgment. If judgment is against the annexation, a further annexation of the annexed territory may not take place for two (2) years after the date the remonstrance was filed. A final judgment may not prevent either the acquiring school corporation or acquiring school corporation and losing school corporation from rescinding the annexation resolution. If the suit is dismissed without prejudice, the two (2) year prohibition does not apply unless a subsequent annexation resolution is adopted primarily for the purpose of harassment and not for some other purpose, including the correction of procedural irregularities or a substantial change in the annexed territory or the annexation resolution.
    (b) If the remonstrance relates solely to any matter raised under section 10(a)(4) of this chapter, the annexation takes effect at the time provided under section 8 of this chapter.
    Sec. 14. (a) Laws or parts of laws in conflict with this chapter are repealed. This chapter may not be construed to repeal any part of IC 20-23-4 or any statute concerning the consolidation of two (2) or more school corporations, to which this chapter is supplementary, except to the extent that IC 20-23-4 conflicts with this section.
    (b) An annexation that is undertaken under or that results by operation of any section of this chapter may require, for its effectiveness, any approval of any county committee or state commission or committee created under, or referred to in, IC 20-23-4.
    Chapter 6. Consolidation of School Corporations
    Sec. 1. As used in this chapter, "trustees" means the:
        (1) township trustee and township board; or
        (2) governing body;
of each school corporation joining in the resolution provided for in this chapter.
    Sec. 2. The governing body of two (2) or more school corporations, whether:
        (1) towns;
        (2) cities;
        (3) townships;
        (4) joint schools; or


        (5) consolidated schools;
situated in the same or adjoining counties may consolidate their respective school corporations in the manner and upon the conditions prescribed in this chapter.
    Sec. 3. (a) If the governing bodies of at least two (2) school corporations desire to consolidate school corporations, the governing bodies may meet together and adopt a joint resolution declaring intention to consolidate school corporations. The resolution must set out the following information concerning the proposed consolidation:
        (1) The name of the proposed new school corporation.
        (2) The number of members on the governing body and the manner in which they shall be elected or appointed.
            (A) If members are to be elected, the resolution must provide for:
                (i) the manner of the nomination of members;
                (ii) who shall constitute the board of election commissioners;
                (iii) who shall appoint inspectors, judges, clerks, and sheriffs; and
                (iv) any other provisions desirable in facilitating the election.
            (B) Where applicable and not in conflict with the resolution, the election is governed by the general election laws of Indiana, including the registration laws.
        (3) Limitations on residences, term of office, and other qualifications required of the members of the governing body. A resolution may not provide for an appointive or elective term of more than four (4) years. A member may succeed himself or herself in office.
        (4) Names of present school corporations that are to be merged together as a consolidated school corporation.
In addition, the resolution may specify the time when the consolidated school corporation comes into existence.
    (b) The number of members on the governing body as provided in the resolution may not be less than three (3) or more than seven (7). However, the joint resolution may provide for a board of nine (9) members if the proposed consolidated school corporation is formed out of two (2) or more school corporations that:
        (1) have entered into an interlocal agreement to construct and operate a joint high school; or
        (2) are operating a joint high school that has an enrollment of

at least six hundred (600) in grades 9 through 12 at the time the joint resolution is adopted.
    (c) The members of the governing body shall, after adopting a joint resolution, give notice by publication once each week for two (2) consecutive weeks in a newspaper of general circulation, if any, in each of the school corporations. If a newspaper is not published in the school corporation, publication shall be made in the nearest newspaper published in the county in which the school corporation is located. The governing bodies of school corporations shall meet one (1) week following the date of the appearance of the last publication of notice of intention to consolidate. If a protest has not been filed, as provided in this chapter, the governing bodies shall declare by joint resolution the consolidation of the school corporations to be accomplished, to take effect as provided in section 8 of this chapter. However, on or before the sixth day following the last publication of the notice of intention to consolidate, twenty percent (20%) of the legal voters residing in any school corporation may petition the governing body of the school corporations for an election to determine whether or not the majority of the voters of the school corporation is in favor of consolidation.
    Sec. 4. (a) If the joint resolution under section 3 of this chapter provides that the consolidated schools shall be under the direction of the county superintendent of schools, the resolution may be amended by following the procedure in this section to provide that the consolidated schools are under the direction of a superintendent selected by the governing body of the new consolidated school corporation. The change shall be effected by a resolution adopted by a majority of the members of the governing body at a meeting held within the limits of the consolidated school corporation. All the members of the governing body shall receive or waive written notice of the:
        (1) date;
        (2) time;
        (3) place; and
        (4) purpose;
of the meeting. The resolution and proof of service or waiver of the notice shall be made a part of the records of the governing body. An amendment takes effect after the adoption of a resolution at the time a superintendent is selected by the governing body and commences the superintendent's duties. The superintendent shall serve under a contract in the same manner and under the same

rules governing the employment and service of other licensed personnel. The superintendent's original contract and succeeding contracts may be for a period of from one (1) to five (5) years.
    (b) The joint resolution of a consolidated school corporation may not be amended under this section unless the corporation is entitled at the time the governing body adopts an amending resolution under:
        (1) the rules established by the state board or its successor; or
        (2) any appropriation or other statute;
to an additional unit or administrative unit of state support if the governing body employs a licensed superintendent devoting full time to administration or supervision of schools of the corporation.
    (c) In all instances of reorganization under this chapter after March 11, 1965, the consolidated school corporation shall be under the direction of a superintendent selected by its governing body.
    Sec. 5. (a) If a petition is filed in one (1) or more of the school corporations protesting consolidation as provided in this chapter by the legal voters of any school corporation the governing body of which proposes to consolidate, the governing body in each school corporation in which a protest petition is filed shall certify the public question to each county election board of the county in which the school corporation is located. The county election board shall call an election of the voters of the school corporation to determine if a majority of the legal voters of the corporation is in favor of consolidating the school corporations.
    (b) If a protest is filed in more than one (1) school corporation, the elections shall be held on the same day. Each county election board shall give notice by publication once each week for two (2) consecutive weeks in a newspaper of general circulation in the school corporation. If a newspaper is not published in the:
        (1) township;
        (2) town; or
        (3) city;
the notice shall be published in the nearest newspaper published in the county or counties, that on a day and at an hour to be named in the notice, the polls will be open at the usual voting places in the various precincts in the corporation for taking the vote of the legal voters upon whether the school corporation shall be consolidated with the other school corporations joining in the resolution.
    (c) The public question shall be placed on the ballot in the form provided by IC 3-10-9-4 and must state: "Shall (insert name of school corporation) be consolidated with (insert names of other

school corporations)?".
    (d) Notice shall be given not later than thirty (30) days after the petition is filed. The election shall be held not less than ten (10) days or more than twenty (20) days after the last publication of the notice.
    (e) The governing body of each school corporation in which an election is held is bound by the majority vote of those voting. However, if the election falls within a period of not more than six (6) months before a primary or general election, the election shall be held concurrently with the primary or general election.
    (f) If a majority of those voting in any one (1) school corporation votes against the plan of consolidation, the plan fails. However, the failure does not prevent any or all the school corporations from taking further initial action for the consolidation of school corporations under this chapter.
    (g) Whenever:
        (1) twenty percent (20%) of the legal voters residing in any school corporation join with twenty percent (20%) of the legal voters in each of one (1) or more other school corporations;
        (2) prepare a resolution; and
        (3) petition the trustees of their respective school corporations;
to consolidate the school corporations, as set out in the resolution, the governing body petitioned shall call the school election provided for in this chapter in each of the school corporations.
    (h) Notice of the election shall be published within thirty (30) days after the filing of the resolution with the governing body of the school corporation where it is last filed. However, if any of the petitioned governing bodies agrees to the consolidation as set out in the resolution, an election in that school corporation may not be required under the resolution.
    (i) Notice as set out in this section shall be given, and a protest requesting an election may be filed in conformity with section 3 of this chapter.
    Sec. 6. (a) On the day and hour named in the notice filed under section 5 of this chapter, polls shall be opened and the votes of the registered voters shall be taken upon the public question of consolidating school corporations. The election shall be governed by IC 3, except as provided in this chapter.
    (b) The county election board shall conduct the election. The public question shall be placed on the ballot in the form prescribed by IC 3-10-9-4 and must state "Shall (here insert the names of the

school corporations that the resolution proposes to consolidate) be consolidated into a consolidated school corporation?".
    (c) A brief statement of the provisions in the resolution for appointment or election of a governing body may be placed on the ballot in the form prescribed by IC 3-10-9-4. A certificate of the votes cast for and against the consolidation of the school corporations shall be filed with:
        (1) the governing body of the school corporations subject to the election;
        (2) the state superintendent; and
        (3) the county recorder of each county in which a consolidated school corporation is located;
together with a copy of the resolution.
    (d) If a majority of the votes cast at each of the elections is in favor of the consolidation of two (2) or more school corporations, the trustees of the school corporations shall proceed to consolidate the schools and provide the necessary buildings and equipment. In any school corporation where a petition was not filed and an election was not held, the failure on the part of the voters to file a petition for an election shall be considered to give the consent of the voters of the school corporation to the consolidation as set out in the resolution.
    (e) If the special election is not conducted at a primary or general election, the expense of the election shall be borne by the school corporation or each of the school corporations subject to the election and shall be paid out of the special school fund.
    Sec. 7. (a) Each school of the consolidated schools is under the control and management of the original governing body until the consolidated school corporation comes into existence at the time provided in section 8 of this chapter. When the consolidated school corporation comes into existence, the term of office of each of the original members of the governing body expires.
    (b) The term of any township trustee does not expire. However, the duties and powers of the trustee as a school township trustee may be altered or changed by any resolution and the consolidation provided for in this chapter.
    Sec. 8. (a) Consolidated schools are under the control and management of the consolidated governing body created under this chapter, and a new consolidated school corporation comes into existence:
        (1) at the time specified in the resolutions provided in section 3 or 4 of this chapter; or


        (2) if a time is not specified, at the following times:
            (A) If a protest has not been filed and the creation is accomplished by the adoption of a joint resolution following publication of notice as provided in section 3 of this chapter, thirty (30) days following the adoption of the joint resolution.
            (B) If the creation is accomplished after an election as provided in section 6 of this chapter, thirty (30) days following the election.
    (b) The members of the governing body shall:
        (1) take an oath to faithfully discharge the duties of office; and
        (2) meet at least five (5) days before the time the new consolidated school corporation comes into existence to organize.
    (c) The governing body shall meet to reorganize on August 1 of each year and at any time the personnel of the board is changed. At the organization or reorganization meeting, the members of the governing body shall elect the following:
        (1) A president.
        (2) A secretary.
        (3) A treasurer.
    (d) The treasurer, before starting the duties of the treasurer's office, shall execute a bond to the acceptance of the county auditor. The fee for the bond shall be paid from the special school fund of the consolidated school corporation. Any vacancy occurring in governing body membership in any governing body, other than vacancy in the office of an ex officio member, shall be filled in the following manner:
        (1) If the membership was originally made by appointment, the vacancy shall be filled by appointment by the legislative body of the:
            (A) city;
            (B) town;
            (C) township; or
            (D) other body;
        or other official making the original appointment.
        (2) If the membership was elected, the vacancy shall be filled by a majority vote of the remaining members of the governing body of the consolidated school corporation.
    (e) The members of the governing body, other than the township executive or ex officio member, shall receive compensation for services as fixed by resolution of the governing body. The

members, other than the township executive or any ex officio member, may not receive more than two hundred dollars ($200) annually. Any:
        (1) township executive; or
        (2) ex officio member of the governing body;
shall serve without additional compensation.
    (f) The governing body of a consolidated school corporation may elect and appoint personnel it considers necessary.
    Sec. 9. (a) When any:
        (1) school town;
        (2) school city;
        (3) school township;
        (4) joint school; or
        (5) consolidated school;
has become consolidated by resolution or election and the new governing body has been appointed and legally organized, the former school township, school town, school city, joint school, or consolidated school is considered abandoned.
    (b) All school:
        (1) property;
        (2) rights;
        (3) privileges; and
        (4) any indebtedness;
from the abandoned school is considered to have accrued to and be assumed by the new consolidated school corporation.
    (c) The title of property shall pass to and become vested in the new consolidated school corporation. All debts of the former school corporations shall be assumed and paid by the new consolidated school corporation. All the privileges and rights conferred by law upon the former:
        (1) school township;
        (2) school town;
        (3) school city;
        (4) joint school; or
        (5) consolidated school;
are granted to the newly consolidated school corporation.
    (d) This subsection applies when the consolidated governing body of a consolidated school corporation decides that property acquired under subsection (b) from a township is no longer needed for school purposes. The governing body shall offer the property as a gift for park and recreation purposes to the township that owned the property before the school was consolidated. If the

township board accepts the offer, the governing body shall give the township a quitclaim deed to the property. The deed must state that the township is required to use the property for park and recreation purposes. If the township board refuses the offer, the governing body may sell the property in the manner provided in subsection (e).
    (e) This subsection provides the procedure for the sale of school property that is no longer needed for school purposes by the governing body of a consolidated school corporation. The governing body shall cause the property to be appraised at a fair cash value by three (3) reputable resident freeholders of the school corporation offering the property for sale. The appraisals shall be made under oath and spread of record upon the records of the governing body. A sale may not be made for less than the appraised value, and the sale must be made for cash. The sale shall take place after the governing body gives notice under IC 5-3-1 of the terms, date, time, and place of sale.
    (f) Proceeds from a sale under subsection (e) shall be placed in a special school fund of the consolidated school corporation designated as the capital outlay fund that shall be available for capital outlay of the school corporation.
    Sec. 10. (a) The governing body of a consolidated school corporation formed under this chapter may join with other:
        (1) townships;
        (2) school towns;
        (3) school cities;
        (4) joint schools; or
        (5) consolidated schools;
to decide whether a consolidation shall take place.
    (b) The provisions concerning:
        (1) resolutions;
        (2) petitions; and
        (3) elections;
set out in this chapter apply.
    (c) The new resolution may change the name of the consolidated school corporation or the number of members of the newly consolidated governing body under this chapter.
    Sec. 11. A governing body shall, after the members have taken their oath of office, cause a copy of the resolution to consolidate to be filed with the county recorder in the county in which the new school district is located. Any consolidated school district is declared to be and is made a school corporation for school

purposes, separate and distinct from any civil corporation.
    Sec. 12. (a) This section provides an alternative method for a school corporation to be reorganized as a community school corporation.
    (b) The following may petition directly to the state board to be reorganized as a community school corporation:
        (1) A consolidated school corporation organized under section 3 of this chapter.
        (2) A county school corporation organized under IC 20-23-16-15.
        (3) A metropolitan school district organized under IC 20-23-7-2 or IC 20-23-7-12.
    (c) The following apply to a school corporation that petitions directly to the state board under subsection (b):
        (1) The school corporation is not required to do the following:
            (A) Seek approval of a county committee established by IC 20-23-4-11.
            (B) Pursue a joint meeting of a county committee and the state board under IC 20-23-4-18.
        (2) The state board may waive the attainment of any standard required for reorganization as a community school corporation under this chapter.
    Sec. 13. If the term "majority" is used in connection with any law providing for the submission to an electorate of the question of the consolidation of two (2) or more school corporations, in all laws enacted before March 13, 1959, concerning school consolidation, and in particular IC 20-23-6 and IC 20-23-7, the term means the greater number of votes cast and counted either for or against the proposition of consolidation. Any additions to the certificate of the votes cast, other than the number of votes cast for and against the proposition of consolidation, shall be considered as surplusage and of no effect, and the intention of IC 20-23-6 and of IC 20-23-7 shall be so interpreted.
    Sec. 14. All laws enacted pertaining to the consolidation of school corporations shall be liberally construed to effect the following purposes for which the laws were enacted:
        (1) Better schools.
        (2) Ease of administration.
        (3) Economy of operation.
    Sec. 15. An action to test or question the legality of a consolidated school corporation may only be brought in an action of quo warranto in the name of the state on information filed by

the prosecuting attorney of the county in which the principal office of the consolidated school corporation is located where attempts are made or have been made to consolidate or join together school corporations under the provisions of IC 20-23-6 or IC 20-23-7, and an election on the question of consolidation has been held and the certificate certifying the vote is filed as provided by law or, an election is not held and the number of days allowed by statutes for filing a petition for an election has expired.
    Sec. 16. It is the policy of the state that whenever a community school corporation (as defined in IC 20-23-4-3) seeks to:
        (1) reorganize into a community school corporation under IC 20-23-4 or IC 20-23-16-1 through IC 20-23-16-11;
        (2) enter into a territorial annexation under IC 20-23-5 either as an acquiring school corporation or a losing school corporation (as defined in IC 20-23-5-4);
        (3) consolidate with another school corporation under IC 20-23-6; or
        (4) consolidate with another school corporation into one (1) metropolitan school district under IC 20-23-7;
the school corporation shall give consideration to the educational opportunities for students, local community interest, the effect on the community as a whole, and the economic interests of the community relative to establishing the boundaries of the school corporation that is involved in the school corporation reorganization, consolidation, or annexation attempt.
    Sec. 17. (a) If the territory of a third class city is in a part of the territory of a consolidated school corporation, the third class city may lease to the consolidated school corporation a building and the property the building is on that is owned by the city for school purposes for a period of at least five (5) consecutive years.
    (b) The common council of the city shall authorize a lease under subsection (a) and the authorization may be made:
        (1) without appraisement;
        (2) without compensation; or
        (3) upon terms agreed upon.
    (c) The possession and use of a specified part of property that a city leases under this section may be reserved by the city for city use. A lease made under this section shall be in the form of a deed or other written instrument that may be recorded. The grant must state that if the property is no longer needed for school purposes, the property reverts back to the city. A consolidated school corporation acting through its board of school trustees may accept

a lease:
        (1) without appraisement;
        (2) compensation; or
        (3) upon agreed upon terms;
by its board of school trustees.
    (d) This section, being necessary and intended to remedy deficiencies in laws existing on June 30, 1955, relating to powers of certain municipal corporations and of certain school corporations, does not repeal the provisions of those laws governing corporations but supplements and clarifies those laws, and to that end shall be liberally construed.
    Chapter 7. Consolidation of County School Corporations and Metropolitan School Districts
    Sec. 1. It is the purpose of this chapter to provide for the organization of public schools in Indiana to:
        (1) promote the best interests of the students of Indiana;
        (2) provide for the organization of additional forms of local school government;
        (3) preserve and ensure an economical and efficient school system in accordance with the desires of the people in local communities; and
        (4) improve the education of the students of Indiana as guaranteed by the laws and Constitution of the State of Indiana.
    Sec. 2. (a) In any county or adjoining counties at least two (2) school corporations, including school townships, school towns, school cities, consolidated school corporations, joint schools, metropolitan school districts, township school districts, or community school corporations, regardless of whether the consolidating school corporations are of the same or of a different character, may consolidate into one (1) metropolitan school district. Subject to subsection (h), the consolidation must be initiated by following either of the following procedures:
        (1) The township trustee, board of school trustees, board of education, or other governing body (the trustee, board, or other governing body is referred to elsewhere in this section as the "governing body") of each school corporation to be consolidated shall:
            (A) adopt substantially identical resolutions providing for the consolidation; and
            (B) publish a notice setting out the text of the resolution one (1) time under IC 5-3-1.


        The resolution must set forth any provision for staggering the terms of the board members of the metropolitan school district elected under this chapter. If, not more than thirty (30) days after publication of the resolution, a petition of protest, signed by at least twenty percent (20%) of the registered voters residing in the school corporation is filed with the clerk of the circuit court of each county where the voters who are eligible to sign the petition reside, a referendum election shall be held as provided in subsection (c).
        (2) Instead of the adoption of substantially identical resolutions in each of the proposed consolidating school corporations under subdivision (1), a referendum election under subsection (c) shall be held on the occurrence of all of the following:
            (A) At least twenty percent (20%) of the registered voters residing in a particular school corporation sign a petition requesting that the school corporation consolidate with another school corporation (referred to in this subsection as "the responding school corporation").
            (B) The petition described in clause (A) is filed with the clerk of the circuit court of each county where the voters who are eligible to sign the petition reside.
            (C) Not more than thirty (30) days after the service of the petition by the clerk of the circuit court to the governing body of the responding school corporation under subsection (b) and the certification of signatures on the petition occurs under subsection (b), the governing body of the responding school corporation adopts a resolution approving the petition and providing for the consolidation.
            (D) An approving resolution has the same effect as the substantially identical resolutions adopted by the governing bodies under subdivision (1), and the governing bodies shall publish the notice provided under subdivision (1) not more than fifteen (15) days after the approving resolution is adopted. However, if a governing body that is a party to the consolidation fails to publish notice within the required fifteen (15) day time period, a referendum election still must be held as provided in subsection (c).
        If the governing body of the responding school corporation does not act on the petition within the thirty (30) day period described in clause (C), the governing body's inaction

constitutes a disapproval of the petition request. If the governing body of the responding school corporation adopts a resolution disapproving the petition or fails to act within the thirty (30) day period, a referendum election as described in subsection (c) may not be held and the petition requesting the consolidation is defeated.
    (b) Any petition of protest under subsection (a)(1) or a petition requesting consolidation under subsection (a)(2) must show in the petition the date on which each person has signed the petition and the person's residence on that date. The petition may be executed in several counterparts, the total of which constitutes the petition. Each counterpart must contain the names of voters residing within a single county and shall be filed with the clerk of the circuit court of the county. Each counterpart must have attached to it the affidavit of the person circulating the counterpart that each signature appearing on the counterpart was affixed in that person's presence and is the true and lawful signature of each person who made the signature. Any signer may file the petition or any counterpart of the petition. Each signer on the petition may before and may not after the filing with the clerk withdraw the signer's name from the petition. A name may not be added to the petition after the petition has been filed with the clerk. After the receipt of any counterpart of the petition, each circuit court clerk shall certify:
        (1) the number of persons signing the counterpart;
        (2) the number of persons who are registered voters residing within that part of the school corporation located within the clerk's county, as disclosed by the voter registration records in the office of the clerk or the board of registration of the county, or wherever registration records may be kept;
        (3) the total number of registered voters residing within the boundaries of that part of the school corporation located within the county, as disclosed in the voter registration records; and
        (4) the date of the filing of the petition.
Certification shall be made by each clerk of the circuit court not more than thirty (30) days after the filing of the petition, excluding from the calculation of the period any time during which the registration records are unavailable to the clerk, or within any additional time as is reasonably necessary to permit the clerk to make the certification. In certifying the number of registered voters, the clerk of the circuit court shall disregard any signature

on the petition not made within the ninety (90) days immediately before the filing of the petition with the clerk as shown by the dates set out in the petition. The clerk of the circuit court shall establish a record of the certification in the clerk's office and shall serve the original petition and a copy of the certification on the county election board under IC 3-10-9-3 and the governing bodies of each affected school corporation. Service shall be made by mail or manual delivery to the governing bodies, to any officer of the governing bodies, or to the administrative office of the governing bodies, if any, and shall be made for all purposes of this section on the day of the mailing or the date of the manual delivery.
    (c) The county election board in each county where the proposed metropolitan school district is located, acting jointly where the proposed metropolitan school district is created and where it is located in more than one (1) county, shall cause any referendum election required under either subsection (a)(1) or (a)(2) to be held in the entire proposed metropolitan district at a special election. The special election shall be not less than sixty (60) days and not more than ninety (90) days after the service of the petition of protest and certification by each clerk of the circuit court under subsection (a)(1) or (a)(2) or after the occurrence of the first action requiring a referendum under subsection (a)(2). However, if a primary or general election at which county officials are to be nominated or elected, or at which city or town officials are to be elected in those areas of the proposed metropolitan school district that are within the city or town, is to be held after the sixty (60) days and not more than six (6) months after the service or the occurrence of the first action, each election board may hold the referendum election with the primary or general election.
    (d) Notice of the special election shall be given by each election board by publication under IC 5-3-1.
    (e) Except where it conflicts with this section or cannot be practicably applied, IC 3 applies to the conduct of the referendum election. If the referendum election is not conducted at a primary or general election, the cost of conducting the election shall be charged to each component school corporation included in the proposed metropolitan school district in the same proportion as its assessed valuation bears to the total assessed valuation of the proposed metropolitan school district and shall be paid from any current operating fund of each component school corporation not otherwise appropriated, without appropriation.
    (f) The question in the referendum election shall be placed on

the ballot in the form prescribed by IC 3-10-9-4 and must state "Shall the school corporations of _________ be formed into one (1) metropolitan school district under IC 20-23-7?" (in which blanks the respective name of the school districts concerned will be inserted).
    (g) If:
        (1) a protest petition with the required signatures is not filed after the adoption of substantially identical resolutions of the governing bodies providing for or approving the consolidation as described in subsection (a)(1); or
        (2) a referendum election occurs in the entire proposed metropolitan district and a majority of the voters in each proposed consolidating school corporation vote in the affirmative;
a metropolitan school district is created and comes into existence in the territory subject to the provisions and under the conditions described in this chapter. The boundaries include all of the territory within the school corporations, and it shall be known as "Metropolitan School District of _______, Indiana" (the name of the district concerned will be inserted in the blank). The name of the district shall be decided by a majority vote of the metropolitan governing board of the metropolitan school district at the first meeting. The metropolitan governing board of the new metropolitan school district shall be composed and elected under this chapter. The failure of any public official or body to perform any duty within the time provided in this chapter does not invalidate any proceedings taken by that official or body, but this provision shall not be construed to authorize a delay in the holding of a referendum election under this chapter.
    (h) If the governing body of a school corporation is involved in a consolidation proposal under subsection (a)(1) or (a)(2) that fails to result in a consolidation, the:
        (1) governing body of the school corporation may not initiate a subsequent consolidation with another school corporation under subsection (a)(1); and
        (2) residents of the school corporation may not file a petition requesting a consolidation with another school corporation under subsection (a)(2);
for one (1) year after the date on which the prior consolidation proposal failed.
    Sec. 3. (a) The metropolitan school district shall conduct the educational activities of all the schools in the district in compliance

with:
        (1) state law; and
        (2) the laws of the state of Indiana with reference to public education.
    (b) The control and administration of the schools of the metropolitan school district are vested in a governing body whose:
        (1) composition;
        (2) duties;
        (3) manner of election; and
        (4) powers;
are described in this chapter.
    Sec. 4. (a) At the first meeting of the board of commissioners of the county after the creation of the metropolitan school district as provided in this chapter, the board of commissioners shall divide the district into three (3) governing body districts approximately equal in population. Not more than one (1) year after the effective date of each United States decennial census, the board of commissioners shall readjust the boundaries of the districts to equalize the districts by population.
    (b) Instead of the division provided under subsection (a), any resolution or petition provided in section 2(a) or 2(b) of this chapter may:
        (1) provide that the metropolitan school district to be created shall be divided into two (2) or more governing body districts;
        (2) describe the governing body member districts;
        (3) provide that one (1) or more members of the governing body must reside within each of the governing body member districts;
        (4) set out the number of members to serve from each designated district;
        (5) provide that the governing body member districts need not be equal in size or population, and that one (1) board member district may include all the area in the metropolitan school district;
        (6) specify that the number of governing body members to be resident in each district need not be an equal number; and
        (7) eliminate all requirements that there be governing body member districts.
    (c) If the resolution or petition:
        (1) does not provide for governing body member districts and designate the number of governing body members to be resident in each district; or


        (2) provides for the elimination of governing body member districts;
subsection (a) controls. If either subsection (a) or (b) applies, candidates shall be voted upon by all the registered voters of the metropolitan school district voting at any governing body member election.
    Sec. 5. (a) The rights, powers, and duties of the metropolitan school district shall be vested in the governing body that must be composed of:
        (1) three (3);
        (2) five (5); or
        (3) seven (7) members;
who have resided in the district for at least two (2) years before taking office. The resolution or petition provided by section 2(a) or 2(b) of this chapter may designate the number of members of the governing body. If a designation is not made concerning the number of members of a governing body, the governing body is composed of five (5) members.
    (b) If section 4(a) of this chapter applies to a metropolitan school district, the following rules apply:
        (1) If the governing body consists of three (3) members, one (1) member shall reside in each residence district.
        (2) If the governing body consists of five (5) members, not more than two (2) shall reside in any one (1) residence district.
        (3) If the governing body consists of seven (7) members, at least two (2) shall reside in any one (1) residence district.
    (c) If a governing body member moves the member's residence within the metropolitan school district from one (1) governing body member district to another or when governing body member district boundaries are moved so that the member's place of residence changes from one (1) governing body member district to another, the member does not on this account become disqualified as a governing body member but may continue to hold office as a member of the governing body.
    Sec. 6. (a) The first metropolitan board of education shall be composed of the:
        (1) trustees; and
        (2) members of school boards;
of the school corporations forming the metropolitan board of education.
    (b) The members of the metropolitan board of education shall serve ex officio as members subject to the laws concerning length

of terms, powers of election, or appointment and filling vacancies applicable to their respective offices.
    (c) If a metropolitan school district is comprised of only two (2) board members, the two (2) members shall appoint a third board member not more than ten (10) days after the creation of the metropolitan school district. If the two (2) members are unable to agree on or do not make the appointment of a third board member within the ten (10) day period after the creation of the metropolitan school district, the third member shall be appointed not more than twenty (20) days after the creation of the metropolitan school district by the judge of the circuit court of the county in which the metropolitan school district is located. If the metropolitan school district is located in two (2) or more counties, the judge of the circuit court of the county containing that part of the metropolitan school district having more students than the part or parts located in another county or counties shall appoint the third member. The members of the metropolitan board of education serve until their successors are elected or appointed and qualified.
    (d) The first meeting of the first metropolitan board of education shall be held not more than one (1) month after the creation of the metropolitan school district. The first meeting shall be called by the superintendent of schools, or township trustee of a school township, of the school corporation in the district having the largest number of students. At the first meeting, the board shall organize, and during the first ten (10) days of each July the board shall reorganize, by electing a president, a vice president, a secretary, and a treasurer.
    (e) The secretary of the board shall keep an accurate record of the minutes of the metropolitan board of education and the minutes shall be kept in the superintendent's office. When a metropolitan school district is formed, the metropolitan superintendent shall act as administrator of the board and shall carry out the acts and duties as designated by the board. A quorum consists of a majority of the members of the board. A quorum is required for the transaction of business. The vote of a majority of those present is required for a:
        (1) motion;
        (2) ordinance; or
        (3) resolution;
to pass.
    (f) The board shall conduct its affairs in the manner described

in this section. Except in unusual cases, the board shall hold its meetings at the office of the metropolitan superintendent or at a place mutually designated by the board and the superintendent. Board records are to be maintained and board business is to be conducted from the office of the metropolitan superintendent or a place designated by the board and the superintendent.
    (g) The metropolitan board of education shall have the power to pay to a member of the board:
        (1) a reasonable per diem for service on the board not to exceed one hundred twenty-five dollars ($125) per year; and
        (2) for travel to and from a member's home to the place of the meeting within the district, a sum for mileage equal to the amount per mile paid to state officers and employees. The rate per mile shall change when the state government changes its rate per mile.
    Sec. 7. (a) The transfer of:
        (1) powers;
        (2) duties;
        (3) property;
        (4) property rights;
        (5) other assets;
        (6) liabilities;
        (7) contracts, both as to rights and obligations; and
        (8) other issues connected with the transfer of authority from existing school corporations to the metropolitan school district;
shall take place at the time of the first meeting of the metropolitan board of education not more than one (1) month after the creation of the board.
    (b) The transfer of the items listed in subsection (a) are vested in the metropolitan school district at the time of the first meeting of the metropolitan board of education.
    Sec. 8. (a) Members of the metropolitan board of education are elected by the registered voters of the metropolitan school district at the primary elections held biennially in the state, commencing with the next primary election that is held more than sixty (60) days after the creation of the metropolitan school district as provided in this chapter. Nominations for a member of the board of education are made by a petition signed by the nominee and by ten (10) registered voters residing in the same board member district as the nominee. A petition must be filed not earlier than the date that a petition of nomination may first be filed under

IC 3-8-6-10 and not later than noon on the last date provided by IC 3-8-2-4 for the filing of a declaration of candidacy for the primary election with the clerk of the circuit court in each county where the metropolitan school district is located.
    (b) Nominees for school board members shall be listed on the primary election ballot in the form prescribed by IC 3-10-1-19 by board member districts without party designation. A ballot shall state the number of board members to be voted upon and the maximum number of board members who may be elected from each board member district in compliance with section 5 of this chapter. A ballot is not valid if more than the maximum number of board members are voted upon from a board member district. The election boards in the various precincts and in the county or counties serving at a primary election shall conduct the election for school board members. A registered voter may vote in a school board election without otherwise voting in the primary election.
    (c) Voting and tabulation of votes shall be conducted in the same manner as voting and tabulation in primary elections are conducted, and the candidates having the greatest number of votes shall be elected. If more than the maximum number of candidates that may be elected from a board member district, as provided in section 5 of this chapter, are among those having the greatest number of votes, the lowest of those candidates from the board member district in excess of the maximum number must be eliminated in determining the candidates who are elected. If there is a tie vote for the candidates, the judge of the circuit court in the county where the majority of the registered voters of the metropolitan school district reside shall select one (1) of the candidates who shall be declared and certified elected.
    (d) If after the first board member election a vacancy on the board occurs, including the failure of a sufficient number of petitions for candidates being filed, and whether the vacating member was elected or appointed, the remaining members of the metropolitan board of education shall by a majority vote fill the vacancy by appointing a person from the board member district that the person who vacated the board membership was elected, or if the person was appointed, the board member district from which the last elected predecessor of the person was elected. If there is a tie vote among the remaining members of the board or their failure to act not more than thirty (30) days after the vacancy occurs, the judge of the circuit court in the county where the majority of registered voters of the metropolitan school district reside shall

make the appointment. A successor to the appointive board member shall be elected at the next primary election that is held more than sixty (60) days after an elected board member vacates membership on the board or at the primary election held immediately before the end of the term for which the vacating member was elected, whichever is sooner. Unless the successor takes office at the end of the term of the vacating member, the member shall serve only for the balance of the term. In an election of a successor board member to fill a vacancy for a two (2) year balance of a term, nominating petitions for school board membership candidacy need not be filed for or with reference to the vacancy. However, as required by IC 3-11-2-14.5, candidates for at-large seats must be distinguished on the ballot from candidates for district seats. If there is more than one (1) at-large seat on the ballot due to this vacancy, the elected candidate who receives the lowest number of votes at the election at which the successor is elected shall serve for a two (2) year term.
    (e) At the first primary election in which members of the metropolitan board of education are elected under this section, a simple majority of the elected candidates, consisting of those elected candidates who receive the highest number of votes, are elected for four (4) year terms, and the balance of the elected candidates, consisting of those who received the lowest number of votes, are elected for two (2) year terms. A candidate for membership on the metropolitan board of education shall:
        (1) be voted upon by the voters of the entire district;
        (2) be elected for four (4) year terms after the first election; and
        (3) take office and assume the duties of the office July 1 following their election.
    Sec. 9. (a) This section applies to a metropolitan or consolidated school corporation located in a county containing a consolidated city.
    (b) The same method used to cast votes for other offices for which candidates have qualified to be on the election ballot shall be used for the school board offices on the election ballot.
    Sec. 10. (a) The metropolitan board of education shall appoint a metropolitan superintendent of schools who shall serve under contract in the same manner and under the same laws that govern the employment and service of other licensed school personnel. The metropolitan superintendent of schools' salary and expense allowance is fixed by the metropolitan board of education. The

metropolitan superintendent of schools' original contract:
        (1) must be for a period of one (1) to five (5) years; and
        (2) may be changed or extended by mutual agreement.
    (b) Appointments to fill a vacancy for a metropolitan superintendent of schools shall be made under this chapter.
    (c) The board shall:
        (1) act upon the recommendations of the metropolitan superintendent of schools; and
        (2) make other decisions and perform other duties as required by law.
    (d) A:
        (1) county superintendent;
        (2) city school superintendent; or
        (3) town superintendent;
in a metropolitan school district shall continue in the superintendents' respective employment at the same salary, paid in the same manner and according to the same terms as agreed to before the formation of the metropolitan school district.
    (e) A metropolitan board of education shall:
        (1) assign administrative duties; and
        (2) designate:
            (A) one (1) of the superintendents in the metropolitan school district; or
            (B) a competent and qualified person as determined by the board;
to perform the duties of the metropolitan superintendent of the metropolitan school district as set forth in this chapter.
    (f) A metropolitan board of education shall appoint a superintendent of the metropolitan school district and other administrative supervisory officers as provided in this chapter if:
        (1) the previous superintendent's term expired;
        (2) the previous superintendent's contract of employment ended; or
        (3) the previous superintendent:
            (A) died; or
            (B) resigned.
    (g) The appointment and salary of the metropolitan superintendent of schools appointed under subsection (f) shall be made, set, and paid as provided in this chapter.
    Sec. 11. If a metropolitan school district formed under this chapter includes territory in more than one (1) county, the respective counties, boards, commissions, and officers of each of

the counties shall perform duties required to form a metropolitan school district jointly and severally, including:
        (1) dividing the territory into board member districts;
        (2) levying and collecting taxes;
        (3) allocating receipts;
        (4) filing petitions for nomination;
        (5) printing and distributing ballots,
        (6) tabulating and certifying election results; and
        (7) filling vacancies.
    Sec. 12. (a) As used in this section, "school township" means a school township of this state that:
        (1) for the last full school semester immediately preceding the adoption of a preliminary resolution by the township trustee and the township board under subsection (f) or their adoption of a resolution of disapproval under subsection (g) had an average daily membership of at least six hundred (600) students in kindergarten through grade 12 in the public schools of the school township; or
        (2) is part of a township in which there were more votes cast for township trustee outside the school township than inside the school township in the general election at which the trustee was elected and that preceded the adoption of the preliminary or disapproving resolution.
    (b) As used in this section, "township trustee" means the township trustee of the township in which the school township is located.
    (c) As used in this section, "township board" means the township board of the township in which the school township is located.
    (d) As used in this section, "county" means the county in which the school township is located.
    (e) In a school township, a metropolitan school district may be created by complying with this section. A metropolitan school district created under this section shall have the same boundaries as the school township. After a district has been created under this section, the school township that preceded the metropolitan school district is abolished. None of the procedures or provisions governing the creation of a metropolitan school district under another section of this chapter are applicable to the creation of a district under this section. After a district is created under this section, the metropolitan school district shall, except as otherwise provided in this section, be governed by and operate in accordance

with this chapter governing the operation of a metropolitan school district as established under section 2 of this chapter.
    (f) Except as provided in subsection (g), a metropolitan school district provided for in subsection (e) may be created in the following manner:
        (1) The township trustee shall call a meeting of the township board. At the meeting the township trustee and a majority of the township board shall adopt a resolution that a metropolitan school district shall be created in the school township. The township trustee shall then give notice:
            (A) by publication by two (2) insertions one (1) week apart in a newspaper of general circulation published in the school township, or
            (B) if there is no newspaper as described in clause (A), in a newspaper of general circulation in the county;
        of the adoption of the resolution setting forth the text of the resolution.
        (2) On the thirtieth day after the date of the last publication of the notice under subdivision (1) and if a protest has not been filed, the township trustee and a majority of the township board shall confirm their preliminary resolution. If, however, on or before the twenty-ninth day after the date of the last publication of the notice, a number of registered voters of the school township, equal to five percent (5%) or more of the number of votes cast in the school township for secretary of state at the last preceding general election for that office, sign and file with the township trustee a petition requesting an election in the school township to determine whether or not a metropolitan school district must be created in the township in accordance with the preliminary resolution, then an election must be held as provided in subsection (h). The preliminary resolution and confirming resolution provided in this subsection shall both be adopted at a meeting of the township trustee and township board in which the township trustee and each member of the township board received or waived a written notice of the date, time, place, and purpose of the meeting. The resolution and the proof of service or waiver of the notice shall be made a part of the records of the township board.
    (g) Except as provided in subsection (f), a metropolitan school district may also be created in the following manner:
        (1) A number of registered voters of the school township,

equal to five percent (5%) or more of the votes cast in the school township for secretary of state at the last general election for that office, shall sign and file with the township trustee a petition requesting the creation of a metropolitan school district under this section.
        (2) The township trustee and a majority of the township board shall, not more than ten (10) days after the filing of a petition:
            (A) adopt a preliminary resolution that a metropolitan school district shall be created in the school township and proceed as provided in subsection (f); or
            (B) adopt a resolution disapproving the creation of the district.
        (3) If either the township trustee or a majority of township board members vote in favor of disapproving the resolution, an election must be held to determine whether or not a metropolitan school district shall be created in the school township in the same manner as is provided in subsection (f) if an election is requested by petition.
    (h) An election required under subsection (f) or (g) may, at the option of the township trustee, be held either as a special election or in conjunction with a primary or general election to be held not more than one hundred twenty (120) days after the filing of a petition under subsection (f) or the adoption of the disapproving resolution under subsection (g). The township trustee shall certify the question to the county election board under IC 3-10-9-3 and give notice of an election:
        (1) by two (2) insertions one (1) week apart in a newspaper of general circulation in the school township; or
        (2) if a newspaper described in subdivision (1) does not exist, in a newspaper of general circulation published in the county.
The notice must provide that on a day and at an hour named in the notice, the polls shall be opened at the usual voting places in the various precincts in the school township for the purpose of taking the vote of the registered voters of the school township regarding whether a metropolitan school district shall be created in the township. The election shall be held not less than twenty (20) days and not more than thirty (30) days after the last publication of the notice unless a primary or general election will be conducted not more than six (6) months after the publication. In that case, the county election board shall place the public question on the ballot at the primary or general election. If the election is to be a special election, the township trustee shall give notice not more than thirty

(30) days after the filing of the petition or the adoption of the disapproving resolution.
    (i) On the day and time named in the notice, the polls shall be opened and the votes of the voters shall be taken regarding whether a metropolitan school district shall be created in the school township. IC 3 governs the election except as otherwise provided in this chapter. The county election board shall conduct the election. The public question shall be placed on the ballot in the form prescribed by IC 3-10-9-4 and must state "Shall a metropolitan school district under IC 20-23-7 be formed in the ____________ School Township of _____________ County, Indiana?". The name of the school township shall be inserted in the blanks.
    (j) The votes cast in the election shall be canvassed at a place in the school township determined by the county election board. The certificate of the votes cast for and against the creation of a metropolitan school district shall be filed in the records of the township board and recorded with the county recorder. If the special election is not conducted at a primary or general election, the school township shall pay the expense of holding the election out of the special school fund that is appropriated for this purpose.
    (k) A metropolitan school district shall, subject to section 7 of this chapter, be created on the thirtieth day after the date of the adoption of the confirming resolution under subsection (f) or an election held under subsection (h). If a public official fails to do the official's duty within the time prescribed in this section, the failure does not invalidate the proceedings taken under this section. An action to contest the validity of the creation of a metropolitan school district under this section or to enjoin the operation of a metropolitan school district may not be instituted later than the thirtieth day following the date of the adoption of the confirming resolution under subsection (f) or of the election held under subsection (h). Except as provided in this section, an election under this subsection may not be held sooner than twelve (12) months after another election held under subsection (h).
    (l) A metropolitan school district is known as "The Metropolitan School District of ____________ Township, ____________ County, Indiana". The first metropolitan board of education in a metropolitan school district created under this section consists of five (5) members. The township trustee and the township board members are ex officio members of the first board, subject to the laws concerning length of their respective terms of office, manner

of election or appointment, and the filling of vacancies applicable to their respective offices. The ex officio members serve without other compensation or reimbursement for expenses than that which they may receive from their respective offices. The township board shall, by a resolution recorded in its records, appoint the fifth member of the metropolitan board of education. The fifth member shall meet the qualifications of a member of a metropolitan board of education under this chapter, with the exception of the board member district requirements provided in sections 4, 5, and 8 of this chapter.
    (m) A fifth board member shall be appointed not more than fifteen (15) days after the date of the adoption of the confirming resolution under subsection (f)(2) or an election held under subsection (h). The first board shall hold its first meeting not more than fifteen (15) days after the date when the fifth board member is appointed or elected, on a date established by the township board in the resolution in which it appoints the fifth board member. The first board shall serve until July 1 following the election of a metropolitan school board at the first primary election held more than sixty (60) days following the creation of the metropolitan school district.
    (n) After the creation of a metropolitan school district under with this section, the president of the metropolitan school board of the district shall serve as a member of the county board of education and perform the duties on the county board of education that were previously performed by the township trustee. The metropolitan school board and superintendent of the district may call upon the assistance of and use the services provided by the county superintendent of schools. This subsection does not limit or take away the powers, rights, privileges, or duties of the metropolitan school district or the board or superintendent of the district provided in this chapter.
    Sec. 13. In the resolution creating a county school corporation or metropolitan school district or in the petitions requesting the creation of or requesting a referendum on the question of creating a corporation or district under IC 20-23-16-15 or section 2 or 12 of this chapter, the resolutions or petitions may specify when a school corporation or school district shall be created and the corporation or district shall then be created at the time provided in the resolutions or petitions.
    Chapter 8. Governing Body Composition Change
    Sec. 1. As used in this chapter, "circuit court" means:


        (1) the circuit court of the county in which a school corporation is located; or
        (2) if a school corporation is located in more than one (1) county, the circuit court of the county in which the largest number of registered voters of the school corporation are residents.
    Sec. 2. As used in this chapter, "clerk" means:
        (1) the clerk of the circuit court of the county in which a school corporation is located; or
        (2) if a school corporation is located in more than one (1) county, the clerks in each of the counties in which the school corporation is located.
    Sec. 3. As used in this chapter, "county election board" means:
        (1) the county election board in the county in which a school corporation is located; or
        (2) if a school corporation is located in more than one (1) county, the county election boards of the counties in which the school corporation is located, acting jointly.
    Sec. 4. As used in this chapter, "plan" means the manner in which the governing body of a school corporation is constituted, including the number, qualifications, length of terms, manner, and time of selection, either by appointment or by election of the members of the governing body.
    Sec. 5. As used in this chapter, "school corporation" means a local public school corporation established under the laws of Indiana. The term does not include a school township or a school corporation covered by IC 20-23-12.
    Sec. 6. As used in this chapter, "voter", with respect to a petition, means a registered voter in the school corporation as determined in this chapter.
    Sec. 7. (a) A plan or proposed plan must contain the following items:
        (1) The number of members of the governing body, which shall be:
            (A) three (3);
            (B) five (5); or
            (C) seven (7);
        members.
        (2) Whether the governing board shall be elected or appointed.
        (3) If appointed, when and by whom, and a general description of the manner of appointment that conforms with

the requirements of IC 20-23-4-28.
        (4) If elected, whether the election shall be at the primary or at the general election that county officials are nominated or elected, and a general description of the manner of election that conforms with the requirements of IC 20-23-4-27.
        (5) The limitations on:
            (A) residence;
            (B) term of office; and
            (C) other qualifications;
        required by members of the governing body.
        (6) The time the plan takes effect.
A plan or proposed plan may have additional details to make the provisions of the plan workable. The details may include provisions relating to the commencement or length of terms of office of the members of the governing body taking office under the plan.
    (b) Except as provided in subsection (a)(1), in a city having a population of more than fifty-nine thousand seven hundred (59,700) but less than sixty-five thousand (65,000), the governing body described in a plan may have up to nine (9) members.
    Sec. 8. (a) A plan is subject to the following limitations:
        (1) A member of the governing body may not serve for a term of more than four (4) years, but a member may succeed himself or herself in office. This limitation does not apply to members who hold over during an interim period to effect a new plan awaiting the selection and qualification of a member under the new plan.
        (2) The plan, if the members are:
            (A) to be elected, shall conform with one (1) of the types of board organization permitted by IC 20-23-4-27; or
            (B) appointed, shall conform with one (1) of the types permitted by IC 20-23-4-28.
        (3) The terms of the members of the governing body, either elected to or taking office on or before the time the plan takes effect, may not be shortened. The terms of the members taking office under the plan may be shortened to make the plan workable on a permanent basis.
        (4) If the plan provides for electoral districts, where a member of the governing body is elected solely by the voters of a single district, the districts must be as near as practicable equal in population. The districts shall be reapportioned and their boundaries changed, if necessary, by resolution of the governing body before the election next following the effective

date of the subsequent decennial census to preserve the equality by resolution of the governing body.
        (5) The plan shall comply with the:
            (A) Constitution of the State of Indiana; and
            (B) Constitution of the United States;
        including the equal protection clauses of both constitutions.
        (6) The provisions of IC 20-23-4-26 through IC 20-23-4-33 and IC 20-23-16-4 relating to the board of trustees of a community school corporation and to the community school corporation, including provisions relating to powers of the board and corporation and provisions relating to the mechanics of selection of the board, where elected and where appointed, apply to a governing body set up by a plan under this chapter and to the school corporation.
    (b) The limitations set forth in this section do not have to be specifically set forth in a plan but are a part of the plan. A plan shall be construed, if possible, to comply with this chapter. If a provision of the plan or an application of the plan violates this chapter, the invalidity does not affect the other provisions or applications of the plan that can be given effect without the invalid provision or application. The provisions of a plan are severable.
    Sec. 9. The plan of school board organization of a governing body may be changed in accordance with the procedures set out in this chapter.
    Sec. 10. (a) A change in a plan may be initiated by one (1) of the following procedures:
        (1) By filing a petition signed by at least twenty percent (20%) of the voters of the school corporation with the clerk of the circuit court.
        (2) By a resolution adopted by the governing body of the school corporation.
        (3) By ordinance adopted by a city legislative body under section 13 of this chapter.
    (b) A petition, resolution, or ordinance must set forth a description of the plan that conforms with section 7 of this chapter.
    (c) Except as provided in subsection (a)(1), in a city having a population of more than fifty-nine thousand seven hundred (59,700) but less than sixty-five thousand (65,000), a change in a plan may be initiated by filing a petition signed by ten percent (10%) or more of the voters of the school corporation with the clerk of the circuit court.
    Sec. 11. (a) A voter is entitled to file a petition under this

chapter with the clerk of the circuit court to:
        (1) initiate a plan;
        (2) protest a plan; or
        (3) initiate an alternative plan.
    (b) If a voter files a petition under subsection (a), the filing and certification of the petition is governed by the following provisions:
        (1) The petition must show:
            (A) the date that a person has signed the petition; and,
            (B) in order to identify the person as a registered voter of the school corporation, the person's residence on that date.
        (2) The petition may be executed in several counterparts, the total of which constitutes a petition. A counterpart must:
            (A) contain the names of voters residing within a single county;
            (B) be filed with the clerk of the circuit court of that county;
            (C) have attached to it the affidavit of the person circulating the counterpart stating that each signature:
                (i) appearing on the counterpart was affixed in the person's presence; and
                (ii) is the true and lawful signature of the person who made the signature.
        (3) A person who signs a petition or a counterpart may file the petition or a counterpart.
        (4) All counterparts constituting a petition shall be filed on the same day.
        (5) A person who signs a petition filed under subsection (a) may withdraw the person's name from the petition before the petition is filed with the clerk. Names may not be added to a petition after the petition has been filed with the clerk.
        (6) After the receipt of a petition, the clerk shall:
            (A) strike all signatures appearing on the petition more than once; and
            (B) make a certification under the clerk's hand and seal of the office as to the following:
                (i) The number of signatures on the petition that are not duplicates representing persons who are registered voters residing within that part of the school corporation located within the county, as disclosed by the voter registration records in the office of the clerk or the board of registration of the county, or wherever the registration records are kept.


                (ii) The total number of registered voters residing within the boundaries of that part of the school corporation located within the county, as disclosed in the records described in item (i).
                (iii) The date of the filing of the petition with the clerk.
        (7) The clerk shall:
            (A) certify a petition not more than thirty (30) days after the filing of the petition, excluding time when the registration records are unavailable to the clerk, or within additional time as is reasonably necessary not to exceed an additional thirty (30) days, to permit the clerk to make a certification;
            (B) establish a record of the certification at the clerk's office; and
            (C) file:
                (i) the original petition; and
                (ii) a copy of the clerk's certification;
            with the governing body.
    Sec. 12. The governing body shall, by resolution adopted not more than thirty (30) days after a petition is filed with it, either approve or disapprove a plan. The failure to take action within the thirty (30) day period constitutes disapproval of the plan.
    Sec. 13. (a) This section applies to a school corporation located in a city having a population of more than ninety thousand (90,000) but less than one hundred five thousand (105,000).
    (b) The city legislative body may adopt an ordinance to increase the membership of the governing body of a school corporation to seven (7) members.
    (c) The ordinance must provide the following:
        (1) The additional members of the governing body are to be appointed by the city executive.
        (2) If the plan is subsequently changed to provide for the election of governing body members:
            (A) the membership of the governing body may not be less than seven (7); and
            (B) the members of the governing body are to be elected.
        (3) The initial terms of the members appointed under this section.
        (4) The effective date of the ordinance.
    (d) An ordinance adopted under this section:
        (1) supersedes a part of the plan that conflicts with the ordinance;
        (2) must be filed with the state superintendent under section 22 of this chapter; and
        (3) may only be amended or repealed by the city legislative body.
    Sec. 14. (a) Not more than ten (10) days after a governing body has:
        (1) initiated;
        (2) approved; or
        (3) disapproved;
a plan initiated by the petition filed with it, the governing body shall publish a notice one (1) time in a newspaper of general circulation in the county of the school corporation. If a newspaper of general circulation is not published in the county of the school corporation, the governing body shall publish a notice one (1) time in a newspaper of general circulation published in a county adjoining the county of the school corporation.
    (b) The notice must set out the text of a plan initiated by the governing body or another plan filed with the governing body before the preparation of the notice. The notice must also state the right of a voter, as provided in this section, to file a petition for alternative plans or a petition protesting the adoption of a plan or plans to which the notice relates.
    (c) If the governing body fails to publish a notice required by this section, the governing body shall, not more than five (5) days after the expiration of the ten (10) day period for publication of notice under this section, submit the petition that has been filed with the clerk to the state board, whether or not the plan contained in the petition or the petition meets the requirements of this chapter.
    (d) Not later than one hundred twenty (120) days after the publication of the notice, voters of the school corporation may file with the clerk a petition protesting a plan initiated or approved by the governing body or a petition submitting an alternative plan as follows:
        (1) A petition protesting a plan shall be signed by at least twenty percent (20%) of the voters of the school corporation or five hundred (500) voters of the school corporation, whichever is less.
        (2) A petition submitting an alternative plan shall be signed by at least twenty percent (20%) of the voters of the school corporation.
A petition filed under this subsection shall be certified by the clerk

and shall be filed with the governing body in the same manner as is provided for a petition in section 11 of this chapter.
    (e) The governing body or the voters may not initiate or file additional plans until the plans that were published in the notice or submitted as alternative plans not later than one hundred twenty (120) days after the publication of the notice have been disposed of by:
        (1) adoption;
        (2) defeat at a special election held under section 16 of this chapter; or
        (3) combination with another plan by the state board under section 15 of this chapter.
    Sec. 15. (a) Not more than thirty (30) days after the expiration of the one hundred twenty (120) day period for filing a petition, plans that have been published in accordance with section 14 of this chapter, whether the plans were initiated by the governing body or in connection with a petition, shall be submitted to the state board.
    (b) The state board shall:
        (1) review a plan;
        (2) revise a plan, if possible, to:
            (A) cure ambiguities; and
            (B) ensure that the plan complies with the limitations set out in section 8 of this chapter;
        (3) if a plan provides for electoral districts, verify that the districts are, as near as practicable, equal in population according to the decennial census immediately preceding the first petition or resolution initiating the plan; and
        (4) certify a plan, with revisions, to the governing body and to the clerk.
The state board may combine plans if the state board determines that the plans are substantially similar. In making its determinations, the commission may, but is not obligated to, hold hearings and shall make an investigation as it considers necessary. If the state board holds a hearing, the state board may hear the evidence through hearing examiners, who do not have to be members of the state board. The state board shall send a certified record of its determinations to the governing body, the clerk, and the county election board.
    (c) Not more than sixty (60) days after receiving a plan submitted by a governing body under section 14 of this chapter, the state board shall publish notice of the plan in accordance with

section 14 of this chapter, unless the state board determines that the plan or the petition does not meet the requirements of this chapter.
    Sec. 16. (a) If:
        (1) the governing body has disapproved a plan submitted;
        (2) an alternative plan has been filed; or
        (3) a petition of protest has been filed;
the county election board shall hold a special election at a date to be determined by the county election board not more than ninety (90) days after the receipt of the determination of the state board on a plan in the form certified by the state board.
    (b) If a special election under subsection (a) can be held not more than six (6) months after the receipt of the determination from the state board in conjunction with a primary or general election at which:
        (1) county officials are to be elected or nominated; or
        (2) city or town officials are to be elected in those areas of the school corporations that are within the city or town;
the county election board may delay the special election until the date of the regular election.
    (c) If a school corporation is located in more than one (1) county, the county election board of the county containing the greatest percentage of population of the school corporation shall determine the date of an election held under this section.
    Sec. 17. (a) The clerk shall create the form of notice of the election and the ballot not more than thirty (30) days after receiving the certification from the state board as required by section 15 of this chapter. The notice must:
        (1) state the date when the election shall take place; and
        (2) describe generally the plans to be voted upon.
    (b) The text of the public question on the ballot must include a description of the plan proposed, including:
        (1) the number of members on the board;
        (2) the number of electoral or resident member districts, if any;
        (3) the number of at-large districts, if any;
        (4) a general description of the geographical boundaries of the districts, referring to civil boundaries where applicable or merely general descriptions, such as the north half or north part of a civil geographical district or the territory north of a geographical boundary; and
        (5) other information sufficient to distinguish a plan from

other plans.
If the text of the public question includes a description of the plan regarding how the current board is organized, as required by subsection (d), the plan must be identified as the existing plan.
    (c) If only one (1) plan is proposed, the ballot shall be prepared so that voters who wish to vote on the plan must cast either an affirmative vote or a negative vote.
    (d) If more than one (1) plan is proposed, the plan organizing the governing body must appear on the ballot as an option. The text of the public question must include a description of the existing plan that meets the criteria specified in subsection (b). The ballot must be prepared so that voters who wish to vote on the plans may vote for only one (1) plan.
    (e) The text of the public question must be placed on the ballot in the form prescribed by IC 3-10-9-4.
    (f) Subject to IC 3-12-1, the notice or ballot is not invalid if there has been a good faith effort to comply with this section.
    Sec. 18. (a) The county election board shall give notice of an election under section 16 of this chapter after receiving the form of notice and ballot from the clerk. The county election board shall publish notice one (1) time in two (2) newspapers of general circulation in the school corporation, or if only one (1) newspaper is of general circulation, then in that newspaper. The publication may not be made less than ten (10) days nor more than forty-five (45) days before the election. Any other notice of the election or requirement for the time of printing ballots, whether prescribed by IC 3 or otherwise, is not required to be given or observed. A person may not vote at the special election unless the person is then qualified as a registered voter.
    (b) IC 3 applies to the conduct of an election under this chapter, except if the provisions of this chapter are in conflict with provisions of IC 3 or if IC 3 cannot be practicably applied.
    (c) If the special election is not conducted at a primary or general election, the school corporation shall pay the cost of conducting the election from the school corporation's general fund not otherwise appropriated without appropriation.
    Sec. 19. (a) A plan shall be adopted in the following circumstances:
        (1) At the expiration of one hundred twenty (120) days after the publication of notice by the governing body if:
            (A) the governing body has initiated or approved the plan;
            (B) a petition has not been filed either protesting the plan

or setting forth an alternative plan; and
            (C) the state board has reviewed and certified the plan.
        (2) If only one (1) plan is on the ballot and it receives more affirmative than negative votes, the plan is adopted at the expiration of thirty (30) days following the special election.
        (3) If more than one (1) plan is on the ballot, the plan receiving the most votes is adopted at the expiration of thirty (30) days after the special election.
    (b) The plan is effective:
        (1) at the time provided in the plan; or
        (2) if a time is not provided or if the time provided is inapplicable due to the lapse of time of the proceedings under this chapter, either on the January 1 or July 1 following the time of adoption of the plan.
    Sec. 20. An action to:
        (1) contest the validity of the adoption of a plan to declare that the plan has not been validly adopted; or
        (2) enjoin the operation of a plan;
may not be instituted with respect to the adoption of the plan under section 19(a)(1) of this chapter at any time later than the one hundred twenty (120) days following the publication of the notice required by section 14 of this chapter or under section 19(a)(2) or 19(a)(3) of this chapter at any time later than the thirtieth day following the election at which the plan is adopted.
    Sec. 21. An election may not be held under this chapter more than once each eighteen (18) months. A plan for a governing body may not be adopted more than once each six (6) years, except if:
        (1) the plan only changes the time of voting for board members from the primary to the general election or from the general to the primary election;
        (2) a plan adopted is declared or held to be invalid by a binding judgment or order in a United States or an Indiana court that no appeal or further approval can be taken; or
        (3) the plan provides solely for changes in items specified in section 7(a)(5) of this chapter.
    Sec. 22. (a) A school corporation shall file with the state superintendent:
        (1) a transcript showing the acts and resolutions related to the school corporation's formation; and
        (2) a description, if not otherwise contained in the transcript under subdivision (1), of the structure and manner of selection of its governing body.


    (b) The transcript or description under subsection (a) shall be filed not more than sixty (60) days after the school corporation's creation or the school corporation's adoption of a new plan.
    (c) A school corporation shall file with the state superintendent, before August 1 of each year, a list of names and addresses of:
        (1) members of its governing body; and
        (2) the school corporation's officers along with the expiration of the officer's respective terms.
    (d) A school corporation shall file any change to a list under subsection (c) not later than thirty (30) days after the change occurs.
    Sec. 23. (a) The failure of a public official or body to perform the duties specified in this chapter within the time limits prescribed does not invalidate any proceedings taken by the official or board.
    (b) If a public official or body refuses to perform duties within the time limits provided in this chapter, the official or body may be mandated to perform the duties in an action filed in the circuit or superior court by a voter or by the governing body.
    (c) The court shall award reasonable attorney's fees to a voter who brings an action under this section against a governing body or public official and prevails. The governing body or employer of a public official shall pay costs and fees incurred by or on behalf of an employee in defense of a claim or suit for a loss occurring because of acts or omissions within the scope of the employee's employment, regardless of whether the employee can or cannot be held personally liable for the loss.
    Sec. 24. If a United States or an Indiana court enters a binding temporary or permanent order directing or approving a change in the manner of selecting the governing body, any governing body selected under the order is the legal governing body of the school corporation, until its manner of selection is changed under this or any other applicable Indiana statute.
    Sec. 25. (a) In implementing a plan adopted under this chapter, requiring the holding of a special election, the county election board, or county election boards in the case of a multicounty school corporation, shall hold, manage, and supervise a special election.
    (b) The county election board shall pay the costs of a special election.
    (c) A school corporation shall reimburse the county election board from the school corporation's general fund money not otherwise appropriated, without appropriation, if a special election occurs under this chapter.
    Chapter 9. Annexation of a Township School Corporation
    Sec. 1. As used in this chapter, "annexing corporation" refers to a school corporation that has annexed all or part of any territory of a township school.
    Sec. 2. As used in this chapter, "township" refers to a township where any part of a township school was located.
    Sec. 3. As used in this chapter, "township school" refers to:
        (1) a township school that loses territory to an annexing corporation as a result of an annexation;
        (2) the township school's successor; or
        (3) the township.
    Sec. 4. (a) An annexing corporation may file a petition of appeal with the department of local government finance for emergency financial relief.
    (b) The annexing corporation shall serve the petition on the following:
        (1) The department.
        (2) The township.
        (3) The township school.
        (4) Any other annexing corporation that annexed the township school on the same date.
    (c) All annexing corporations are parties to the petition.
    Sec. 5. If the department of local government finance receives a petition of appeal under section 4 of this chapter, the department of local government finance shall submit the petition to the school property tax control board established by IC 6-1.1-19-4.1 for a factfinding hearing.
    Sec. 6. (a) If the department of local government finance submits a petition to the school property tax control board under section 5 of this chapter, the school property tax control board shall hold a factfinding hearing.
    (b) At a hearing described in subsection (a), the school property tax control board shall determine the following:
        (1) Whether the township school has made all payments required by any statute, including the following:
            (A) P.L.32-1999.
            (B) IC 20-23-5-12 and IC 20-23-16-37.
            (C) The resolution or plan of annexation of the township school, including:
                (i) any amendment to the resolution or plan;
                (ii) any supporting or related documents; and
                (iii) any agreement between the township school and an

annexing corporation relating to the winding up of affairs of the township school.
        (2) The amount, if any, by which the township school is in arrears on any payment described in subdivision (1).
        (3) Whether the township school has filed with the department of local government finance all reports concerning the affairs of the township school, including all transfer tuition reports required for the two (2) school years immediately preceding the date on which the township school was annexed.
    (c) In determining the amount of arrears under subsection (b)(2), the school property tax control board shall consider all amounts due to an annexing corporation, including the following:
        (1) Any transfer tuition payments due to the annexing corporation.
        (2) All levies, excise tax distributions, and state distributions received by the township school and due to the annexing corporation, including levies and distributions received by the township school after the date on which the township school was annexed.
        (3) All excessive levies that the township school agreed to impose and pay to an annexing corporation but failed to impose.
    (d) If, in a hearing under this section, a school property tax control board determines that a township school has:
        (1) under subsection (b)(1), failed to make a required payment; or
        (2) under subsection (b)(3), failed to file a required report;
the department may act under section 7 of this chapter.
    Sec. 7. (a) If a school property tax control board makes a determination under section 6(d) of this chapter, the department:
        (1) may prohibit a township from:
            (A) acquiring real estate;
            (B) making a lease or incurring any other contractual obligation calling for an annual outlay by the township exceeding ten thousand dollars ($10,000);
            (C) purchasing personal property for a consideration greater than ten thousand dollars ($10,000); and
            (D) adopting or advertising a budget, tax levy, or tax rate for any calendar year;
        until the township school has made all required payments under section 6(b)(1) of this chapter and filed all required

reports under section 6(b)(3) of this chapter; and
        (2) shall certify to the treasurer of state the amount of arrears determined under section 6(b)(2) of this chapter.
    (b) Upon being notified of the amount of arrears certified under subsection (a)(2), the treasurer of state shall make payments from the funds of state to the extent, but not in excess, of any amounts appropriated by the general assembly for distribution to the township school, deducting the payments from any amount distributed to the township school.
    Sec. 8. The department may grant permission to a township school or a township to impose an excess levy to satisfy its obligations under this chapter.
    Chapter 10. Merger of School Corporations Within Counties
    Sec. 1. As used in this chapter, "concurrent resolutions" means substantially identical resolutions adopted by the governing bodies of the school corporations in a county.
    Sec. 2. As used in this chapter, "governing body" means the board or commission charged by law with the responsibility of administering the affairs of a school corporation, including a board of school commissioners, metropolitan board of education, board of school trustees, or board of trustees. In the case of a school township, the term means the trustees and township board acting jointly.
    Sec. 3. As used in this chapter, "merger" means the merger of all the school corporations in a county into a single school corporation in which the rights and obligations of each school corporation, including the right to receive tax and other money, are transferred into a new corporation to be known in this chapter as the merged corporation.
    Sec. 4. As used in this chapter, "school corporation in the county" means all the school corporations that have territory in a county.
    Sec. 5. School corporations in a county may merge in the following manner:
        (1) The governing bodies of the school corporations shall adopt a concurrent resolution providing for the merger.
        (2) The resolutions in subdivision (1) shall be adopted not later than sixty (60) days after the date the first concurrent resolution is adopted by a governing body. The resolutions must provide for the following:
            (A) The makeup of board member districts, including that:
                (i) board members shall be elected from the entire

merged school corporation, but residence requirements may provide that members live in different districts;
                (ii) the board member districts need not be equal in size or population, and one (1) board member district may include the area in the merged school corporation;
                (iii) the number of members of the governing body of the merged school corporation to be elected from a board member district need not be equal in number; and
                (iv) concurrent resolutions may also eliminate requirements that there be board member districts.
            (B) The number of members on the governing body of the merged school corporation must be:
                (i) three (3);
                (ii) five (5); or
                (iii) seven (7);
            members.
            (C) The time the merged school corporation comes into existence.
If a time is not provided when the merged school corporation comes into existence or if a final judgment in the remonstrance proceeding is delayed beyond the time set in the concurrent resolutions, the merged school corporation comes into existence on July 1 following the adoption of the resolutions or the final judgment, whichever occurs last.
    Sec. 6. (a) After the last concurrent resolution under section 5 of this chapter is adopted, notice of the adoption of the concurrent resolutions shall be given by stating:
        (1) the substance of the concurrent resolutions;
        (2) that the resolutions have been adopted; and
        (3) that a right of remonstrance exists as provided in this chapter.
It is not necessary to set out the remonstrance provisions of the statute, but a general reference to the right of remonstrance with a reference to this chapter is sufficient.
    (b) The notice under subsection (a) shall be made two (2) times, one (1) week apart in two (2) daily newspapers, published in the English language and of general circulation in the county. If there is only one (1) daily or weekly newspaper in the county, publication in that newspaper is sufficient.
    (c) The merger shall take effect at the time provided in section 5 of this chapter unless, not more than thirty (30) days after the first publication of the notice, a remonstrance is filed in the circuit

or superior court of the county by registered voters equal in number to at least ten percent (10%) of the registered voters of a school corporation in the county.
    Sec. 7. (a) A remonstrance under section 6 of this chapter:
        (1) must be in substantially the following form:
        The undersigned hereby remonstrates against the merger of the school corporations in ____________ county;
        (2) may be filed in counterparts that must have attached:
            (A) the affidavit of the person circulating it;
            (B) a statement that each signature appearing on the remonstrance was affixed in the presence of the person circulating the remonstrance; and
            (C) a statement that each signature is the true and lawful signature of the person who made it;
        (3) shall be accompanied by a complaint filed by one (1) or more of the remonstrators (who shall be treated as a representative of the entire class of remonstrators); and
        (4) shall be signed by the remonstrator or the remonstrator's attorney, stating the reasons for the remonstrance, where these reasons are limited to the following:
            (A) There is a procedural defect in the manner that the merger is carried out which is jurisdictional.
            (B) The benefits to be derived from the merger are outweighed by its detriments, taking into consideration the respective benefits and detriments of the students and inhabitants residing in the school corporations of the county.
    (b) A person who makes an affidavit under subsection (a) does not have to be one (1) of the persons who signs the counterpart attached to the affidavit.
    (c) The plaintiff in the suit is the person whose name appears on the complaint. The defendants in a remonstrance under section 6 of this chapter are the school corporations in the county. Service of process shall be made on the defendants as in other civil actions.
    (d) To determine whether the petition was timely filed, the time of filing is the time of filing with the clerk of the circuit court without regard to the time of issuance of the summons. If the thirtieth day falls on Sunday, a holiday, or another day when the clerk's office is not open, the time is extended to the next day when the clerk's office is open.
    (e) The issues in a remonstrance suit are made up by the complaint, the allegations of the complaint being considered denied

by the defendant or defendants. A responsive pleading does not need to be filed. However, a defendant may file a motion to dismiss the suit on the ground:
        (1) that the requisite number of qualified remonstrators have not signed the petition;
        (2) that the remonstrance was not timely filed; or
        (3) that the complaint does not state a cause of action.
    (f) A responsive pleading to a motion to dismiss under subsection (e) does not need to be filed.
    (g) With respect to a motion under subsection (e)(1) and (e)(2), the allegations are considered denied by the remonstrators.
    (h) To determine whether there are the requisite number of qualified remonstrators under subsection (e)(1), a person may not:
        (1) withdraw the person's name after a remonstrance has been filed; or
        (2) add the person's name to a remonstrance that has been filed.
    (i) At a trial for a remonstrance suit, a person may, in support or derogation of the substantive matters in the complaint, introduce into evidence a verified statement that the person wishes that the person's name be added to or withdrawn from the remonstrance.
    (j) The court may either hear all or a part of the matters raised by a motion to dismiss separately or may consolidate for trial all or a part of the matters with the matters relating to the substance of the case.
    (k) A complaint may not be dismissed for failure to state a cause of action, if a fair reading of the complaint makes out one (1) of the grounds for remonstrance and suit provided in subsection (a).
    (l) An amendment of the complaint may be permitted in the discretion of the court if the complaint does not state a new ground of remonstrance.
    (m) The trial of a remonstrance suit shall be conducted as other civil cases by a court without the intervention of a jury on the issues raised by the:
        (1) complaint; or
        (2) motion to dismiss.
    (n) In a remonstrance suit:
        (1) a change of venue from a judge, but no change of venue from the county, is permitted;
        (2) the court will expedite the hearing of the case; and
        (3) the court's judgment must be either that:


            (A) the merger takes place;
            (B) the merger does not take place; or
            (C) the remonstrance is dismissed.
    Sec. 8. (a) The board members of a merged school corporation shall be elected at the first primary election following the merged school corporation's creation, and vacancies shall be filled in accordance with IC 20-23-4-30.
    (b) Until the first election under subsection (a), the board of trustees of the merged school corporation consists of:
        (1) the members of the governing body of a school corporation in the county other than a school township; and
        (2) the township trustee of a school township in the county.
    (c) The first board of trustees shall select the name of the merged school corporation by a majority vote. The name may be changed by unanimous vote of the governing body of the merged school corporation.
    Sec. 9. A merged school corporation has the powers provided in IC 20-23-4-26 through IC 20-23-4-33 and IC 20-23-16-4.
    Chapter 11. Joint Schools in Adjacent States
    Sec. 1. If a school trustee or board of school trustees of any school corporation in Indiana that is adjacent to a school corporation of another state believes the best interests of the public schools can be promoted by purchasing school grounds, repairing or erecting a schoolhouse or schoolhouses, and maintaining a school jointly between the two (2) adjacent school corporations, the school trustee or school trustees of the school corporation of Indiana so situated may enter into an agreement with the school authorities of the adjacent school corporation to:
        (1) purchase school grounds or repair or construct a school building;
        (2) purchase school furniture, equipment, appliances, or fuel; or
        (3) employ teachers and maintain a school;
if, in the judgment of the school trustee or trustees of Indiana, the best interests of the public school can be promoted by doing so.
    Sec. 2. The trustee or trustees of Indiana may levy taxes and perform other duties in maintaining the joint school as are otherwise provided by law for maintaining the public schools in Indiana.
    Sec. 3. In carrying out this chapter, the school corporation shall pay the proportion of the cost of purchasing school grounds, repairing or erecting new building or buildings, and in maintaining

the joint school, as the school trustees of the two (2) adjacent school corporations determines is equitable and just.
    Chapter 12. Election of Governing Body Members in Gary
    Sec. 1. IC 20-23-8 does not apply to:
        (1) a school corporation; or
        (2) the governing body of a school corporation;
covered by this chapter.
    Sec. 2. As used in this chapter, "school corporation" means a school corporation that is located in a city having a population of more than ninety thousand (90,000) but less than one hundred five thousand (105,000).
    Sec. 3. (a) The governing body of the school corporation consists of seven (7) members elected as follows:
        (1) On a nonpartisan basis.
        (2) In a primary election held in the county.
    (b) Six (6) of the members shall be elected from the school districts drawn under section 4 of this chapter. Each member:
        (1) is elected from the school district in which the member resides; and
        (2) upon election and in conducting the business of the governing body, represents the interests of the entire school corporation.
    (c) One (1) of the members elected:
        (1) is the at-large member of the governing body;
        (2) may reside in any of the districts drawn under section 4 of this chapter; and
        (3) upon election and in conducting the business of the governing body, represents the interests of the entire school corporation.
    Sec. 4. The districts are drawn on the same lines as the common council districts referred to in IC 36-4-6-3.
    Sec. 5. (a) The six (6) members who are elected for a position on the governing body described under section 3(b) of this chapter are determined as follows:
        (1) Each prospective candidate must file a nomination petition with the clerk of the circuit court at least seventy-four (74) days before the election at which the members are to be elected that includes the following information:
            (A) The name of the prospective candidate.
            (B) The district in which the prospective candidate resides.
            (C) The signatures of at least one hundred (100) registered voters residing in the school corporation.


            (D) The fact that the prospective candidate is running for a district position.
            (E) A certification that the prospective candidate meets the qualifications for candidacy imposed by this chapter.
        (2) Only eligible voters residing in the district may vote for a candidate.
        (3) The candidate within each district who receives the greatest number of votes in the district is elected.
    (b) The at-large member elected under section 3(c) of this chapter is determined as follows:
        (1) Each prospective candidate must file a nomination petition with the clerk of the circuit court at least seventy-four (74) days before the election at which the at-large member is to be elected. The petition must include the following information:
            (A) The name of the prospective candidate.
            (B) The signatures of at least one hundred (100) registered voters residing within the school corporation.
            (C) The fact that the prospective candidate is running for the at-large position on the governing body.
            (D) A certification that the prospective candidate meets the qualifications for candidacy imposed by this chapter.
        (2) Only eligible voters residing in the school corporation may vote for a candidate.
        (3) The candidate who:
            (A) runs for the at-large position on the governing body; and
            (B) receives the greatest number of votes in the school corporation;
        is elected to the at-large position.
    Sec. 6. (a) A candidate who runs for a position on the governing body described under section 3(b) of this chapter must reside in the school corporation district for which the candidate filed.
    (b) A candidate who runs for the at-large position on the governing body described in section 3(c) of this chapter must reside in the school corporation.
    Sec. 7. The state board, with assistance from the county election board, shall establish:
        (1) balloting procedures under IC 3 for the election; and
        (2) all other procedures required to implement this chapter.
    Sec. 8. The term of each person elected to serve on the governing body:
        (1) is four (4) years; and
        (2) begins the July 1 that next follows the person's election.
    Sec. 9. The members are elected as follows:
        (1) Three (3) of the members elected under section 3(b) of this chapter are elected at the primary election to be held in 2008 and every four (4) years thereafter.
        (2) Three (3) of the members elected under section 3(b) of this chapter are elected at the primary election to be held in 2006 and every four (4) years thereafter.
        (3) The at-large member elected under section 3(c) of this chapter is elected at the primary election to be held in 2008 and every four (4) years thereafter.
    Sec. 10. (a) A vacancy on the governing body is created when:
        (1) a member:
            (A) dies;
            (B) resigns from the governing body;
            (C) ceases to be a resident of the school corporation;
            (D) fails to attend, except for reason of chronic illness, six (6) regularly scheduled meetings of the governing body in any twelve (12) month period; or
            (E) ceases to be a resident of the school district in which the member was elected; or
        (2) a vacancy is created under any other law.
    (b) The governing body shall temporarily fill a vacancy on the governing body as soon as practicable after the vacancy occurs.
    Sec. 11. Before August 1 of each year, the school corporation shall file with the state superintendent a list of the:
        (1) names and addresses of members of the school corporation's governing body;
        (2) names and addresses of the school corporation's officers; and
        (3) expiration dates of the terms of the school corporation's members and officers.
The school corporation shall file any change in the list not later than thirty (30) days after the change occurs.
    Chapter 13. Election of Governing Body Members in Hammond Community School Corporation
    Sec. 1. (a) In a community school corporation established under IC 20-23-4 that:
        (1) has a population of more than seventy-five thousand (75,000) but less than ninety thousand (90,000); and
        (2) is the successor in interest to a school city having the same population;
the governing body consists of a board of trustees of five (5) members elected in the manner provided in this chapter.
    (b) At the 2004 primary election and at each primary election every four (4) years thereafter, there shall be elected in each school corporation covered by this chapter two (2) governing body members, each of whom shall serve for four (4) years. The two (2) candidates for the office of school trustee receiving the highest number of votes at the election take office on July 1 next following the election.
    (c) At the 2002 primary election and at each primary election every four (4) years thereafter, there shall be elected in each school city covered by this chapter three (3) governing body members, each of whom shall serve for four (4) years. The three (3) candidates for the office of school trustee receiving the highest number of votes at the election take office on July 1 next following the election.
    (d) The governing body members shall be elected at the times provided and shall succeed the retiring members in the order and manner as set forth in this section.
    Sec. 2. (a) As used in this section, "county election board" means a board of elections and registration under IC 3-6-5.2.
    (b) The governing body shall be elected on a general ticket for a term of four (4) years by the voters of the school city. A voter may vote in the primary election for governing body members without otherwise voting and without declaring party preference. The members of the governing body shall be elected at the time of the primary elections as provided in section 1 of this chapter and shall be taken from the city at large without reference to district. The election shall be held under IC 3-10-1, insofar as it is not inconsistent with this chapter.
    (c) At the time provided by law for the filing of declaration of candidacy for the primary election in which members of the governing body are to be elected as provided for in this chapter, legal voters of the city may present names of candidates for election as members of the governing body to the county election board in each county in which a school city subject to this chapter is situated as follows:
        (1) Each candidate shall be proposed in a petition in writing signed by not less than two hundred (200) legal voters of the school city.
        (2) Not more than one (1) candidate may be named in any one (1) petition.
        (3) A legal voter may not sign petitions for a greater number of candidates than the number of school trustees to be elected in the primary election concerned.
    (d) Upon the presentation of the petition to the county election board, the board shall publish the names proposed in accordance with IC 5-3-1 and shall certify the nominations in the manner as required by law. The election shall be conducted in accordance with IC 3.
    (e) The county election board shall prepare the ballot for the primary election at which governing body members are to be elected as provided in this section so that the names of the candidates nominated for the governing body appear on the ballot:
        (    (1) in alphabetical order;
        (2) without party designation; and
        (3) in the form prescribed by IC 3-10-1-19.
The name of a candidate may not be published and placed on the ballot by the county election board if the candidate is ineligible for membership on the governing body under this chapter. Each voter may vote for as many candidates as there are governing body members to be elected.
    Sec. 3. The intent of this chapter is to provide that the governing body of the school corporations to which it relates shall be elected as provided in IC 20-23-4-27 and IC 20-23-4-29 through IC 20-23-4-31, but this chapter prevails over any conflicting provisions of IC 20-23-4 relating to any school corporation.
    Chapter 14. Election of Governing Body Members in Lake Station
    Sec. 1. This chapter applies to a school corporation for which a referendum has been held:
        (1) as required by statute; and
        (2) in which a majority of the votes cast approves electing the members of the governing body.
    Sec. 2. As used in this chapter, "school corporation" means a school corporation that is located in a city having a population of more than thirteen thousand nine hundred (13,900) but less than fourteen thousand two hundred (14,200).
    Sec. 3. (a) The governing body of the school corporation consists of five (5) members elected on a nonpartisan basis.
    (b) Three (3) of the members are elected from the school districts referred to in section 4 of this chapter by eligible voters residing in the school districts. Each member:
        (1) is elected from the school district in which the member

resides; and
        (2) upon election and in conducting the business of the governing body, represents the interests of the entire school corporation.
    (c) Two (2) of the members:
        (1) are elected by eligible voters residing in the school corporation;
        (2) are at-large members of the governing body; and
        (3) upon election and in conducting the business of the governing body, represent the interests of the entire school corporation.
    Sec. 4. The school districts for the election of the members of the governing body under section 3(b) of this chapter are as follows:
        (1) Commencing at the Southeast corner of Section 16; thence West along the center line of 29th Avenue (South line of Section 16) to Deep River; thence Southwesterly along the center line of Deep River to State Road 51; thence South along the center line of State Road 51 to 33rd Avenue to Montgomery Street (the North-South center line of Section 20); thence North along the center line of Montgomery Street to 31st Avenue; then West along the center line of 31st Avenue to Grand Boulevard; then North along the center line of Grand Boulevard to Riverside Drive; then Northeasterly along the center line of Riverside Drive to Laporte Street; thence North along the center line of Laporte Street to Fairview Avenue; thence Easterly along the center line of Fairview Avenue to State Road 51; thence North along the center line of State Road 51 to Central Avenue; thence East along the center line of Central Avenue to the county line; thence South along the county line to the point of beginning.
        (2) Commencing at the Northeast Corner of Section 9-36-7; thence South along the county line to Central Avenue; thence West along the center line of Central Avenue to State Road 51; thence South along the center line of State Road 51 to Fairview Street; thence Westerly along the center line of Fairview Avenue to Laporte Street; thence South along the center line of Laporte Street to Riverside Drive; thence Southwesterly along the center line of Riverside Drive to Grand Boulevard; thence North along the center line of Grand Boulevard to Court Street; thence West along the center line of Court Street to Howard Street; thence Northerly along the center line of Howard Street to the

Borman Tri-State Highway (I-80 and I-94); thence Westerly along the center line of the Borman Tri-State Highway to the Little Calumet River Bed; thence meandering along the center line of the Little Calumet River Bed first in a Northeasterly direction, then in a Southwesterly direction, then in a Northerly direction to Burns Ditch; thence Westerly along the center line of Burns Ditch to Clay Street; then North along the center line of Clay Street to 15th Avenue; thence East along the center line of 15th Avenue to Gibson Street; thence North along Gibson Street to the Indiana Toll Road; thence Easterly along the North Line of the Indiana Toll Road to Lake Street; thence North along the East Line of Lake Street to the Wabash Railroad; thence East along the Wabash Railroad to the point of beginning.
        (3) Commencing at the Southeast corner of Section 18-36-7; thence West along the center line of 29th Avenue to Hancock Street; thence South along the center line of Hancock Street to Deep River; thence Southwesterly along the center line of Deep River to Gibson Street; thence North along the center line of Gibson Street to 29th Avenue; thence West along 29th Avenue, including residences on both the North and South sides of 29th Avenue to Clay Street; thence South along the center line of Clay Street to Liverpool Road; thence Westerly along the center line of Liverpool Road to Benton Street; thence North along the center line of Benton Street to 29th Avenue; thence West along the center line of 29th Avenue to State Street; thence North along the center line of State Street to Marquette Road; thence Easterly along the center line of Marquette Road to Clay Street; thence North along the center line of Clay Street to Burns Ditch; thence Easterly along the center line of Burns Ditch to the Little Calumet River Bed; thence meandering along the center line of the Little Calumet River Bed first in a Southerly direction, then in a Northeasterly direction, and then in a Southerly direction to the Borman Tri-State Highway (I-80 and I-94); then Easterly along the center line of the Borman Tri-State Highway to Howard Street; thence Southerly along the center line of Howard Street to Court Street; thence East along the center line of Court Street to Grand Boulevard; thence South along the center line of Grand Boulevard to the point of beginning.
    Sec. 5. To be eligible to be a candidate for the governing body under this chapter, the following apply:


        (1) Each prospective candidate must file a nomination petition with the clerk of the circuit court at least seventy-four (74) days before the primary election at which the members are to be elected that includes the following information:
            (A) The name of the prospective candidate.
            (B) Whether the prospective candidate is a district candidate or an at-large candidate.
            (C) A certification that the prospective candidate meets the qualifications for candidacy imposed under this chapter.
            (D) The signatures of at least one hundred (100) registered voters residing in the school corporation.
        (2) Each prospective candidate for a district position must:
            (A) reside in the district; and
            (B) have resided in the district for at least the three (3) years immediately preceding the election.
        (3) Each prospective candidate for an at-large position must:
            (A) reside in the school corporation; and
            (B) have resided in the school corporation for at least the three (3) years immediately preceding the election.
        (4) Each prospective candidate (regardless of whether the candidate is a district candidate or an at-large candidate) must:
            (A) be a registered voter;
            (B) have been a registered voter for at least the three (3) years immediately preceding the election; and
            (C) be a high school graduate or have received a:
                (i) high school equivalency certificate; or
                (ii) state general educational development (GED) diploma under IC 20-20-6.
        (5) A prospective candidate may not:
            (A) hold any other elective or appointive office; or
            (B) have a pecuniary interest in any contract with the school corporation or its governing body;
        as prohibited by law.
    Sec. 6. (a) With regard to the district positions referred to in section 3(b) of this chapter, the candidate who receives the greatest number of votes of all candidates against whom the candidate runs is elected.
    (b) With regard to the at-large positions referred to in section 3(c) of this chapter, the two (2) at-large candidates who receive the greatest number of votes of all at-large candidates are elected.
    Sec. 7. The state board, with assistance from the county election

board, shall establish:
        (1) balloting procedures under IC 3 for the election; and
        (2) all other procedures required to implement this chapter.
    Sec. 8. The term of each person elected to serve on the governing body:
        (1) is four (4) years; and
        (2) begins the July 1 that next follows the person's election.
    Sec. 9. The members are elected as follows:
        (1) Three (3) of the members are elected at the primary election to be held in 2008 and every four (4) years thereafter.
        (2) Two (2) of the members are elected at the primary election to be held in 2006 and every four (4) years thereafter.
    Sec. 10. The governing body shall temporarily fill a vacancy on the governing body as soon as practicable after the vacancy occurs. The member chosen must reside in the same district as the vacating member. A member chosen by the governing body to fill a vacancy holds office for the remainder of the unexpired term.
    Chapter 15. Election of Governing Body Members in South Bend
    Sec. 1. As used in this chapter, "county" means the county in which the school corporation is located.
    Sec. 2. As used in this chapter, "school corporation" means a school corporation that:
        (1) is located in a county having a population of:
            (A) more than three hundred thousand (300,000) but less than four hundred thousand (400,000); or
            (B) more than two hundred thousand (200,000) but less than three hundred thousand (300,000); and
        (2) has at least twenty thousand (20,000) students.
    Sec. 3. (a) A school corporation shall hold a referendum at the first primary election after this chapter becomes applicable to the school corporation in which the registered voters who reside within the boundaries of the school corporation are entitled to vote as to whether the school corporation shall elect the members of the governing body of the school corporation under sections 6 through 11 of this chapter.
    (b) The referendum shall be held under the direction of the county election board, which shall take all steps necessary to carry out the referendum.
    (c) However, a referendum is not required in a county in which a referendum under this chapter has been held in a school corporation in that county within twenty-four (24) months of the

effective date of this act.
    Sec. 4. (a) The circuit court clerk of the county shall provide notice of the referendum to the registered voters who reside within the boundaries of the school corporation:
        (1) at least one (1) time;
        (2) in at least one (1) newspaper of general circulation that is published in the county; and
        (3) not earlier than March 15 or later than April 15 of the year in which the referendum is held.
    (b) The notice published under subsection (a) must:
        (1) state that the referendum is called to afford the registered voters an opportunity to vote on whether members of the governing body will be elected;
        (2) state that the referendum will be held at the next primary election to be held on the first Tuesday after the first Monday in May;
        (3) state that the referendum will be held on a nonpartisan basis and that all registered voters residing within the boundaries of the (insert the name of school corporation) may vote in the referendum; and
        (4) designate that the voting place or places at which the referendum will be held must be those that are:
            (A) used for the next primary election; and
            (B) located within the boundaries of the (insert the name of school corporation).
    (c) The referendum question must be placed on the ballot in the form prescribed by IC 3-10-9-4 and must state:
        "Shall the members of the board of school trustees of the (insert the name of school corporation) be elected in the general election from five (5) districts and from two (2) at-large positions in the school corporation?".
    Sec. 5. (a) Each precinct election board shall count the affirmative votes and the negative votes cast in the referendum and shall certify those two (2) totals to the county election board.
    (b) The clerk of the circuit court of the county shall, immediately after the votes cast in the referendum have been counted, certify the results to the state board.
    (c) If a majority of the votes cast in the referendum favors the election of the members of the governing body, sections 6 through 11 of this chapter concerning the manner in which the members of the governing body shall be elected apply.
    Sec. 6. (a) The governing body of the school corporation consists

of seven (7) members who shall be elected:
        (1) on a nonpartisan basis; and
        (2) in the general election held in the county.
    (b) Five (5) of the members shall be elected from the school districts in which the members reside as established under section 7 of this chapter.
    (c) Two (2) of the members shall be elected at large.
    Sec. 7. The state board shall, before July 1 immediately following the referendum, establish the school districts for the election of the members of the governing body under section 6(b) of this chapter as follows:
        (1) The districts shall be drawn on the basis of precinct lines.
        (2) The districts must be, as nearly as practicable, of equal population, with the population of the largest district not to exceed the population of the smallest district by more than five percent (5%).
        (3) The district lines must not cross precinct lines.
    Sec. 8. If a candidate runs for one (1) of the district positions on the governing body, as provided under section 6(b) of this chapter, the following apply:
        (1) An individual who runs for one (1) of the district positions on the governing body must reside within that district.
        (2) Upon filing an intention to run under this chapter, the candidate must specify that the candidate is running for a district position.
        (3) Only eligible voters residing in the candidate's district may vote for the candidate.
        (4) The candidate who receives the greatest number of votes of all candidates against whom the candidate runs wins.
    Sec. 9. If a candidate runs for one (1) of the at-large positions on the governing body, as provided under section 6(c) of this chapter, the following apply:
        (1) An individual who runs for one (1) of the at-large positions on the governing body must reside within the boundaries of the school corporation.
        (2) Upon filing an intention to run under this chapter, the candidate must specify that the candidate is running for an at-large position.
        (3) Eligible voters from all districts may vote for the candidate.
        (4) The two (2) candidates who receive the greatest number of votes win.


    Sec. 10. The state board shall establish:
        (1) balloting procedures for the election under the statutes governing elections; and
        (2) all other procedures required to implement this chapter.
    Sec. 11. (a) Except as otherwise provided in this section, a person elected to serve on the governing body:
        (1) begins the person's term on January 1 of the year following the person's election; and
        (2) serves a four (4) year term.
    (b) The two (2) members of the governing body who were last selected under the selection process in effect for the school corporation before a referendum is held under this chapter shall serve as at-large members through December 31 of the year in which the second general election is held to elect members of the governing body under this chapter. However, if this subsection applies to more than two (2) members, the circuit court judge for the county shall select two (2) of these members to serve as at-large members through December 31 of the year in which the second general election is held to elect members of the governing body under this chapter.
    (c) The terms of all other members of the governing body who were selected to serve on the governing body before a referendum is held under this chapter expire December 31 of the year in which the referendum is held.
    (d) In the initial general election held to elect members of the governing body under this chapter, five (5) of the members shall be elected by voters from their districts as follows:
        (1) Three (3) of the members elected shall serve for four (4) year terms.
        (2) Two (2) of the members elected shall serve for two (2) year terms.
    (e) In the second general election held to elect members of the governing body under this chapter, four (4) of the members shall be elected as follows:
        (1) Two (2) of the members shall be elected by voters from their district and shall serve four (4) year terms.
        (2) Two (2) of the members shall be elected at large and shall serve four (4) year terms.
    Sec. 12. (a) A vacancy on the governing body must be filled temporarily by the governing body as soon as practicable after the vacancy occurs.
    (b) A member chosen by the governing body to fill a vacancy

holds office for the remainder of the unexpired term and shall be chosen from the same district as the vacating member if the vacating member held a district position.
    Chapter 16. School Corporation Organization; Miscellaneous Provisions
    Sec. 1. If a united school corporation is created from existing school corporations that are each entirely located in one (1) county, the county committees of the counties in which the school corporations are located shall jointly prepare a plan for the united school corporation. For the purpose of submission to the state board, the plan shall be included in the comprehensive plan of the county that has the largest number of students residing in the proposed united school corporation. If an existing school corporation from which a united school corporation is created contains territory in two (2) or more counties, the county committee of the county containing that part of the school corporation that has the most students shall include the entire corporation in its plan in the absence of a written agreement with the county committee of the adjoining county to the contrary.
    Sec. 2. (a) Reorganization plans approved before March 15, 1963, by the state board are void on March 15, 1963, except with respect to any community school corporation where:
        (1) any plan has received a majority affirmative vote at an election;
        (2) the plan has been certified by the clerk of the circuit court as being petitioned in by fifty-five percent (55%) or more of the registered voters for any such reorganized school corporation and notice has been published by the county committee under sections 1 and 6 of this chapter and IC 20-23-4-11 through IC 20-23-4-17, IC 20-23-4-20 through IC 20-23-4-23, IC 20-23-4-42, and IC 20-23-4-43; or
        (3) the plan provides for a school corporation meeting the qualifications for formation of a community school corporation under IC 20-23-4-16.
    (b) The county committee and other government officials shall, with respect to any such voided reorganization plan, take all actions necessary for the preparation of a comprehensive plan as if a prior plan had not been submitted, and within the time prescribed by IC 20-23-4-5 through IC 20-23-4-10 and IC 20-23-16-1.
    Sec. 3. With respect to a proposed community school corporation formed out of two (2) or more school corporations

operating a joint high school that has an enrollment of at least six hundred (600) in grades 9 through 12 at the time of the adoption of a preliminary plan adopted under IC 20-23-4-5 through IC 20-23-4-10, IC 20-23-16-1, and IC 20-23-16-2, the preliminary plan or final plan adopted under IC 20-23-4-5 through IC 20-23-4-10, IC 20-23-16-1, and IC 20-23-16-2 may provide for a board of nine (9) members.
    Sec. 4. (a) This section applies to each school corporation.
    (b) Each governing body created under this chapter may annually levy the amount of taxes that;
        (1) in the judgment of the governing body; and
        (2) made a matter of record in the minutes;
should be levied to produce income sufficient to conduct and carry on the public schools committed to the governing body.
    (c) The governing body shall annually levy a rate that will produce a sum sufficient to meet all payments of principal and interest as they mature in the year for which the levy is made on the:
        (1) bonds;
        (2) notes; or
        (3) other obligations;
of the community school corporation.
    (d) The power of the governing body in making tax levies shall be exercised within existing statutory limits. The levies:
        (1) are subject to the same review as school city levies; and
        (2) shall be at a uniform and equal rate on all taxable property located within the boundaries of the community school corporation.
    Sec. 5. School corporations adjacent to rejected segments of proposed reorganized school corporations shall accept on transfer, in the manner required by law, pupils of the rejected school corporation territory.
    Sec. 6. If:
        (1) a plan has been approved by any county committee or committees and by the state board before March 10, 1961;
        (2) the plan provides for election of the members of the board of school trustees of the community or united school corporation; and
        (3) the first board of trustees has not yet been selected;
the plan may be amended by the county committee or committees with the approval of the state board without hearing to provide for the selection of the first members in the manner provided in

IC 20-23-4-31.
    Sec. 7. (a) A reorganization plan may provide that the proposed community school corporation or united school corporation shall pay to each:
        (1) civil township;
        (2) civil city; or
        (3) civil town;
located in the corporation that has issued school aid bonds, before the due date of the bonds, amounts sufficient to pay principal and interest on school aid bonds.
    (b) As an alternative to subsection (a), a reorganization plan may provide for the payment of outstanding school aid bonds of any of the foregoing civil units by:
        (1) the civil townships located in the territory of the community school corporation; or
        (2) the united school corporation;
with each civil township paying annually a proportionate share of the cost of the payment of the principal and interest of school aid bonds falling due each year. The proportionate share must be in the proportion that the net assessed valuation of the civil township's taxable property located within the community or united school corporation bears to the total net assessed valuation in the community or united school corporation. The annual amount shall be paid in semiannual installments on June 20 and December 20 of each year to the treasurer of the governing body of the community or united school corporation who shall in turn promptly pay over to the fiscal officer of each civil unit having outstanding school aid bonds an amount sufficient to pay the then next succeeding installment of principal and interest on the bonds.
    Sec. 8. (a) If a reorganization plan provides for the payment of school aid bonds as authorized in section 7(a) or section 7(b) of this chapter, a school corporation or civil township that is required to make payments shall include in the corporation's annual budget an amount sufficient to make the payments and to levy a tax for the bonds. For civil townships, the tax may be levied only on the property located within the community or united school corporation (which constitutes a special taxing district), and is in addition to all taxes previously authorized. The levy is reviewable by other bodies with authority to ascertain that the levy is sufficient to raise the amount required to meet the payments.
    (b) Payments under this section may not be required before the first June 20 following the first August 1 after the proposed

community school corporation or united school corporation has come into existence.
    Sec. 9. In a community or united school corporation formed before March 11, 1961, the civil townships shall:
        (1) make the payments as provided in section 7(b) of this chapter; and
        (2) levy taxes as provided in section 8 of this chapter as if the provision had been included in the reorganization plan adopted.
    Sec. 10. In a community school corporation formed before or after July 26, 1967, the board of school trustees:
        (1) may by resolution provide for making payments to civil townships as provided in section 7(a) of this chapter; and
        (2) shall levy taxes as provided in section 8 of this chapter as if the provision had been included in the reorganization plan adopted.
    Sec. 11. (a) In a county having a population of more than one hundred seventy thousand (170,000) but less than one hundred eighty thousand (180,000), if, after April 17, 1963:
        (1) proceedings have been undertaken in good faith to form a community school corporation by the consolidation of two (2) or more prior established school corporations;
        (2) the community school corporation is held, by a final order and decision of a court, to be invalidly formed and nonexistent; and
        (3) the order and decision are not subject to further judicial review;
any bonds issued (before the final order and decision of the court) in the name of the community school corporation to provide funds to be applied on the cost of construction and equipment of a school building are not invalid by reason of the final order and decision of the court but constitute the valid and binding obligation of the prior established school corporation in the territory where the school building was or is being constructed, the same as if the bonds had been validly issued in the name of the prior established school corporation.
    (b) This section applies only if the bonds at the time of their issuance would have been within the limitation of indebtedness imposed by the Constitution of the State of Indiana on the prior established school corporation.
    Sec. 12. (a) Except as otherwise provided with respect to the power to issue bonds under section 13 of this chapter, the

governing body shall perform the duties and have all the powers vested in the governing body of a school city of the class in which the consolidated school corporation would fall on the basis of its population according to the last preceding United States census under the Indiana statutes if it were organized as a school city.
    (b) If a consolidated school corporation has a population of less than two thousand (2,000), the governing body shall:
        (1) perform the duties; and
        (2) have all the powers vested in the governing body of a school town.
    (c) The cost of maintaining consolidated schools shall be borne by the consolidated school corporation as a single taxing unit. Taxes to meet the cost shall be:
        (1) levied by the consolidated governing body at a uniform and equal rate on all the taxable property located within the limits of the consolidated school corporation; and
        (2) collected in the:
            (A) city or cities;
            (B) town or towns; and
            (C) township or townships;
        in the same manner as other taxes are levied and collected.
    Sec. 13. (a) When it becomes necessary to:
        (1) build a new building or buildings; or
        (2) make repairs or alterations on old buildings;
the governing body may build a new building or buildings or repair or alter old buildings and purchase the necessary site for new buildings.
    (b) The cost of new buildings or repairs or alterations for old buildings shall be taxed against all taxable property within the corporate limits of the newly consolidated school corporation.
    (c) The governing body may issue bonds of the new school corporation against the taxable property within the corporate limits of the newly consolidated school corporation to meet the cost of any new building or buildings or the repair or alteration of old buildings.
    (d) Bonds authorized by this chapter shall be payable in amounts and at times the governing body determines and shall bear the rate of interest as may be determined.
    (e) The board may levy and collect taxes to meet the payment of any bonds issued under this chapter. The governing body has all of the powers given to school corporations for the purchase of the real estate for school purposes by IC 20-26-7.


    Sec. 14. (a) The governing body of a consolidated school corporation is governed by the Indiana laws in force for transportation of students to consolidated schools.
    (b) If a consolidated school is maintained within the corporate limits of a city or town, the governing body shall provide and maintain means of transportation for all students in:
        (1) elementary schools; or
        (2) high schools; or
        (3) both elementary schools and high schools;
that live more than one-half (1/2) mile outside the city or town limit.
    (c) If due to:
        (1) the condition of roads or streams; or
        (2) distance;
it is not advantageous for certain students to be transported to a consolidated school established and maintained under this chapter, the governing body may maintain separate schools and provide schoolhouses for the students affected by the condition of roads or streams or the distance to consolidated schools.
    Sec. 15. (a) County school corporations may be formed in any county in either of the following ways:
        (1) By majority vote of the township trustees in the county. The township trustees shall hold an officially called public meeting to allow taxpayers of the county to be heard, at least ten (10) days following:
            (A) publication of notice of the meeting held within the county stating the date, time, and place of the meeting in accordance with IC 5-3-1; and
            (B) adoption of a resolution in which the trustees provide for and approve the creation of a county school corporation.
        After the actions in clauses (A) and (B) have been taken, the county school corporation shall be created and come into existence subject to the provisions and under the conditions prescribed in this chapter.
        (2) By action of the voters within any county in the following manner:
            (A) If a petition requesting a referendum in the township school corporations outside the cities and towns of a county:
                (i) on the question of whether the county school corporation shall be created; and
                (ii) signed by a number of registered voters in each school township in the county equal to five percent (5%) of the number of votes cast in that township for the office of secretary of state in the last general election;
            is filed in the office of the clerk of the circuit court in the county, the clerk shall call a meeting of the county election board, and the county election board shall provide for the referendum.
            (B) If the referendum will not be conducted at a general election or primary election, the proper taxing authorities shall levy and appropriate funds for the referendum.
            (C) The referendum shall be held:
                (i) at a special election not less than thirty (30) days after publication of notice in accordance with IC 5-3-1; or
                (ii) at the next primary or general election after the filing of the petition.
            The referendum shall be submitted only to voters of the county residing in the area.
    (b) The question shall be placed on the ballot in the form prescribed by IC 3-10-9-4 and must state "Shall the school townships of__________ county be formed into one county school corporation under IC 20-23-7?".
    (c) If a majority of those voting on the referendum held under this section vote in the affirmative, a county school corporation shall be created and come into existence subject to the provisions and under the conditions described under this chapter. If a majority of those voting in the referendum vote in the negative, the existing school corporations and government of the school corporations remain unaffected.
    Sec. 16. (a) When a county school corporation is created and comes into existence by either of the methods set forth in section 15 of this chapter, the boundaries of the county school corporation must be coterminous with the civil county, and the territories of the county school corporation must include all the territory within the county exclusive of any territory organized under or with a city or town school corporation. A township that at the time of the referendum is:
        (1) conducting any of its schools jointly; or
        (2) consolidated with any city or town under existing law;
shall continue to conduct the schools in all respects and in the same manner as before the creation of the county school corporation and the remainder of the county schools shall become a part of the

county school corporation.
    (b) The county school corporation shall conduct the educational activities of the county under state law with reference to public education. The control and administration of the schools of the county is vested in a county governing body whose:
        (1) composition;
        (2) duties;
        (3) manner of election; and
        (4) powers;
are prescribed in this chapter.
    Sec. 17. (a) At the first meeting of the board of commissioners of the county after the creation of a county school corporation as provided in this chapter, the board of commissioners shall divide the school county exclusive of any cities and towns located therein into three (3) board member districts approximately equal in population.
    (b) Not more than one (1) year after the effective date of each United States decennial census, the board of county commissioners shall readjust the boundaries of the districts if necessary to equalize the districts by population.
    Sec. 18. (a) The:
        (1) rights;
        (2) powers; and
        (3) duties;
of the school corporation are vested in the county governing body, which must consist of five (5) members who have resided in the county for at least two (2) years before taking office.
    (b) The members of the governing body shall be appointed or elected as provided in this chapter so that:
        (1) there is at least one (1) member from each of the governing body member districts; and
        (2) not more than two (2) shall reside in any one (1) district.
    Sec. 19. (a) The first county board of education shall be composed of the following five (5) members:
        (1) Three (3) persons residing in different governing body member districts elected by the trustees of the townships included in the county school corporation in a meeting called by the county superintendent of schools and held to elect governing body members not more than one (1) week after the establishment of the governing body member districts by the board of commissioners.
        (2) Two (2) members appointed by the judge of the circuit

court from different governing body member districts.
Appointments made under this section shall be filed with the clerk of the circuit court not later than the day following the elections and appointments. The members of the county governing body shall serve until successors are elected or appointed and qualified.
    (b) The first meeting of the first board of education shall be held not more than one (1) month after the creation of the county school corporation. The meeting shall be called by the county superintendent of schools. At the first meeting the governing body shall organize.
    (c) During the first ten (10) days of each succeeding July the governing body shall reorganize by electing a:
        (1) president;
        (2) vice president;
        (3) secretary; and
        (4) treasurer.
    (d) The secretary of the governing body shall keep an accurate record of the minutes of the governing body. The minutes shall be kept in the county superintendent's office. The county superintendent shall:
        (1) act as administrator of the governing body; and
        (2) carry out acts and duties as designated by the governing body.
    (e) A quorum consists of a majority of the members of the governing body and is required for the transaction of business. The vote of a majority of those present is required for any:
        (1) motion;
        (2) ordinance; or
        (3) resolution;
to pass.
    (f) The governing body shall:
        (1) conduct its affairs as prescribed for the conduct of county governing bodies;
        (2) hold its meetings at:
            (A) the office of the county superintendent of schools; or
            (B) a place mutually designated by the:
                (i) governing body; and
                (ii) the superintendent; and
        (3) maintain all records and transact all business from a place designated under subdivision (2).
    (g) The county governing body may pay each member of the governing body:


        (1) a reasonable per diem for service on the governing body not to exceed one hundred twenty-five dollars ($125) annually; and
        (2) mileage from the home of a governing body member to the place of meeting within the county. The mileage rate shall be determined by the county fiscal body.
    Sec. 20. The transfer of:
        (1) powers;
        (2) duties;
        (3) property;
        (4) property rights;
        (5) other assets;
        (6) liabilities;
        (7) contracts, both as to rights and obligations; and
        (8) all else connected with the transfer of authority from existing school corporations to the county school corporation;
shall take place at the time of the first meeting of the first governing body within one (1) month after the creation of the governing body and are vested in the county school corporation at the time of the meeting.
    Sec. 21. (a) At the time provided under IC 3-8-2-4 for filing a declaration of candidacy for the primary election following the creation of the county school corporation as provided in this chapter, nominations for members of the governing body of the county school corporation shall be:
        (1) made by a petition signed by:
            (A) the nominee; and
            (B) ten (10) voters of the county residing in the same governing body member district as the nominee; and
        (2) filed with the clerk of the circuit court in the county; and
        (3) listed:
            (A) by governing body member districts on the primary election ballot as prescribed by IC 3-10-1-19; and
            (B) without party designation.
    (b) Voting and tabulation of votes shall be conducted in the same manner as in primary elections under IC 3-10-1. The candidates elected:
        (1) from each governing body member district; and
        (2) at large;
are the persons having the greatest number of votes.
    (c) If:
        (1) in the first election more than two (2) candidates in any

one (1) governing body member district are among those who received the greatest number of votes; or
        (2) in any subsequent election more than one (1) person shall be among those who received the greatest number of votes;
the candidate or candidates respectively receiving the next greatest number of votes in other board member districts respectively shall be declared elected.
    (d) If there is a tie vote for any candidates, the judge of the circuit court shall select one (1) of the candidates who shall be declared and certified elected.
    (e) If a vacancy occurs on the governing body for any reason, including the failure of the sufficient number of petitions for candidates being filed, the judge of the circuit court shall fill the vacancy by appointing a person from the respective governing body member district or districts to serve for the term or balance of terms.
    (f) At the first primary election in which members of the county board of education are elected, the:
        (1) three (3) candidates who receive the highest number of votes in each of the board member districts shall be elected for four (4) year terms; and
        (2) two (2) candidates from different districts receiving the next highest number of votes respectively shall be elected for two (2) year terms.
    (g) All candidates for membership on the county governing body shall:
        (1) be voted upon by the voters in the county school corporation district only;
        (2) be elected for four (4) year terms after the first election; and
        (3) take office and assume their duties one (1) week after election.
    Sec. 22. (a) The county governing body shall appoint a county superintendent of schools who shall serve under contract in the same manner and under the same laws that govern the employment and service of other licensed school personnel.
    (b) The salary and expense allowance of the superintendent shall be fixed by the governing body.
    (c) The original contract of the superintendent must be for a term of from three (3) to five (5) years. The superintendent may be elected for succeeding terms of from three (3) to five (5) years.
    (d) Appointments to fill a vacancy in the position of county

superintendent of schools:
        (1) may be made at any time; and
        (2) shall be so made as to coincide with this chapter.
    (e) The governing body shall:
        (1) act upon the recommendations of the county superintendent of schools; and
        (2) make all other decisions and perform all other duties that fall within the general framework of the laws of Indiana.
    (f) The county superintendent shall serve as county superintendent for the balance of the term for which the superintendent was last elected or appointed at the same salary. The salary shall be paid from the source specified in the contract between the governing body and the superintendent unless by action of the county governing body of the county school corporation the superintendent's salary shall be increased.
    (g) At the expiration of the contract between the superintendent and the governing body or, if the superintendent dies or resigns, appointment and salary of the county superintendent of schools shall be:
        (1) made;
        (2) set; and
        (3) paid;
as provided in this chapter.
    Sec. 23. The duties of the county superintendent of schools include:
        (1) Acting as general administrator of the school corporation.
        (2) Making recommendations to the governing body concerning:
            (A) the conduct of the schools;
            (B) the employment and dismissal of personnel;
            (C) the purchase of supplies;
            (D) the construction of buildings; and
            (E) all other matters pertaining to the conduct of the schools within the framework of the school laws of this state.
        (3) Attending all meetings of the governing body except when the superintendent's reappointment is under consideration.
        (4) Carrying out the orders of the governing body.
        (5) Making all other decisions and performing all other duties that are prescribed by law or that fall within the superintendent's proper and logical jurisdiction.
    Sec. 24. (a) The governing body shall:


        (1) make decisions pertaining to the general conduct of the schools, which shall be enforced as recorded in the minutes prepared by the secretary of the governing body; and
        (2) subject to provisions in this chapter, shall exercise all powers previously exercised:
            (A) under the law:
                (i) by or through township trustees;
                (ii) meetings; or
                (iii) petitions of the township trustees of the county or county boards of education;
        previously existing.
    (b) The duties of the:
        (1) township trustee;
        (2) county board; and
        (3) county boards of education;
insofar as the conduct of public schools is concerned are abolished as of noon on the day the county school corporation is created and comes into existence under this chapter.
    (c) The county superintendent of schools and other persons employed for administrative or supervisory duties are supervisors of instruction.
    (d) The government of the common schools of the county is vested in the governing body. The governing body shall function with all the authority, powers, privileges, duties, and obligations previously granted to or required of school cities and their governing bodies generally under the laws concerning the:
        (1) purchase of supplies;
        (2) purchase and sale of:
            (A) buildings;
            (B) grounds; and
            (C) equipment;
        (3) erection of buildings;
        (4) employment and dismissal of school personnel;
        (5) insuring of property and employees;
        (6) levying and collecting of taxes;
        (7) making and execution of a budget;
        (8) borrowing of money; and
        (9) payment of the salaries and expenses of the county superintendent and employees as approved by the governing body.
    (e) The school corporation is a body corporate and politic by the name and style of "The County School Corporation of _______

County, Indiana" with the right to prosecute and defend suits and shall act in any manner necessary to the proper administration of the common schools of the county.
    (f) School corporations shall be vested with all rights, titles, and interests of the respective predecessor township and town school corporations terminated in all the:
        (1) real;
        (2) personal; and
        (3) other property of any nature;
from whatever source derived.
    (g) School corporations shall assume, pay, and be liable for all the:
        (1) indebtedness;
        (2) obligations;
        (3) liabilities; and
        (4) duties;
of the predecessor corporations from whatever source derived and however arising.
    (h) School corporations shall institute and defend suits arising out of:
        (1) liabilities;
        (2) obligations;
        (3) duties; and
        (4) rights;
assumed under this section as a county school corporation.
    (i) The treasurer, before entering upon the duties of office, shall execute a bond to the acceptance of the county auditor in an amount equal to the largest sum of money that will be in the possession of the treasurer at any one time, conditioned as an ordinary official bond, with a reliable surety company or at least two (2) sufficient freehold sureties, who may not be members of the governing body as surety or sureties on the bond.
    (j) The president and the secretary shall each give bond, with like surety or sureties, to be approved by the county auditor, in the sum of one-fourth (1/4) of the amount of the bond of the treasurer under subsection (i).
    (k) Governing bodies may purchase bonds from a reliable surety company and pay for them out of the special school revenue of their counties.
    (l) The powers in this section shall not be considered as limiting or construed to limit the power and authority of a governing body to the powers expressly conferred or to restrict or modify any

powers or authority granted by any other law not in conflict with this section.
    (m) Every governing body may annually levy taxes necessary to produce income sufficient to conduct and carry on the common schools committed to the governing body. The levy must be a matter of record in the minutes of the governing body. The governing body shall annually levy a rate and levy that will produce a sum sufficient to meet all payments of principal and interest as they will mature in the year for which the levy is made on the:
        (1) bonds;
        (2) notes; or
        (3) other obligations;
of the governing body. The power of the governing body in making tax levies shall be exercised within existing statutory limits. The levies are subject to the same review as school city levies.
    Sec. 25. A metropolitan superintendent of schools shall:
        (1) act as the general administrator of the metropolitan school district; and
        (2) make recommendations to the board concerning:
            (A) the conduct of the schools;
            (B) the employment and dismissal of personnel;
            (C) the purchase of supplies;
            (D) the construction of buildings; and
            (E) other matters pertaining to the conduct of the school within the framework of the school laws of this state;
        (3) attend meetings of the board except when the superintendent's reappointment is under consideration;
        (4) carry out the orders of the board; and
        (5) make other decisions and perform other duties that are prescribed by law.
    Sec. 26. (a) A metropolitan board of education shall:
        (1) make decisions pertaining to the general conduct of the schools, and these decisions shall be enforced and entered into the minutes recorded by the secretary of the board; and
        (2) exercise powers previously exercised under the law, by or through:
            (A) township trustees;
            (B) meetings or petitions of the township trustees of the county; and
            (C) county boards of education previously existing.
The offices of township trustee or county board or county boards

of education as far as the conduct of public schools is concerned are abolished as of noon on the day the metropolitan school district is created and comes into existence.
    (b) The metropolitan superintendent of schools and other persons employed for administrative or supervisory duties may be considered to be supervisors of instruction and are eligible, subject to the rules adopted by the state board, to qualify for teaching units in accordance with law.
    (c) The government of the common schools of a district is vested in the board. The board shall function with the authority, powers, privileges, duties, and obligations previously granted to or required of school cities and their governing boards regarding the:
        (1) purchase of supplies;
        (2) purchase and sale of:
            (A) buildings;
            (B) grounds; and
            (C) equipment;
        (3) erection of buildings;
        (4) employment and dismissal of school personnel;
        (5) insuring property and employees;
        (6) levying and collecting of taxes;
        (7) making and executing of a budget;
        (8) borrowing money; and
        (9) paying the salaries and expenses of the:
            (A) county superintendent; and
            (B) employees;
as approved by the board.
    (d) A board is a body corporate and politic by the name and style of "The Metropolitan School District of ________, Indiana" with the right to prosecute and defend suits and shall act as necessary to the proper administration of the common schools of the county.
    (e) The school district shall:
        (1) be vested with rights, titles, and interests of the district's predecessor township or town school corporations;
        (2) assume, pay, and be liable for the:
            (A) indebtedness;
            (B) obligations;
            (C) liabilities; and
            (D) duties;
        of the predecessor corporations from whatever source derived; and


        (3) institute and defend suits arising out of the school district's:
            (A) liabilities;
            (B) obligations;
            (C) duties; and
            (D) rights;
assumed by a metropolitan school district.
    (f) The treasurer, before entering upon the duties of the office, shall execute a bond to the acceptance of the county auditor. The bond may not be greater than the largest sum of money that will be in the possession of the treasurer at any one (1) time. The board of education may purchase the bond from a reliable surety company and pay for it out of the special school revenue of the metropolitan district.
    (g) The powers set forth in this section shall not be considered as or construed to:
        (1) limit the power and authority of a school board; or
        (2) restrict or modify powers or authority granted by another law not in conflict with the provisions of this section.
    (h) A board may annually levy taxes, and the decision to levy taxes shall be recorded in the board's minutes. Taxes should be levied to produce income sufficient to conduct the common schools committed to the board. A board shall annually levy a rate that will produce a sum sufficient to meet payments of principal and interest that will mature in the year that the levy is made on the bonds, notes, or other obligations of the board. The power of a board in making tax levies shall be exercised within statutory limits and levies are subject to the same review as school city levies.
    Sec. 27. The boards of education of a county or metropolitan school district created under this chapter may levy and collect taxes to operate the schools of the district in the same manner and with the same supervision that taxes are levied and collected by cities and towns.
    Sec. 28. A county school corporation or metropolitan school district formed or operating under Acts 1949, c.227, on March 13, 1959, shall, after that date, be governed, have the powers, and operate in accordance with the provisions of this chapter in the same manner as though it had been formed in accordance with this chapter.
    Sec. 29. The following definitions apply throughout this chapter:
        (1) "Acquiring school corporation" means the school corporation that acquires territory as a result of an

annexation by a city or town.
        (2) "Annex", "annexing", or "annexation" means an act of a city or town, including but not limited to:
            (A) annexation;
            (B) incorporation of the city or town; and
            (C) formation in a city or town of a city or town school corporation, if territory is acquired by one (1) school corporation from another school corporation.
        (3) "Annexed territory" means the territory acquired from an original school corporation as a result of annexation by a city or town.
        (4) "Depreciated replacement cost" of a building means the then cost of replacing the building with a comparable building built by then current methods and designs and providing the same general facilities, reduced by the sum of the following amounts:
            (A) that part of the replacement cost that is equal to that part of the useful life of the building that has expired at that time; plus
            (B) the additional amount that is necessary to reflect an obsolescence or damage that is not reasonably made by the reduction specified in clause (A).
        (5) "Indebtedness of an original school corporation" means indebtedness on account of unpaid bonds of the original school corporation or its predecessors in interest.
        (6) "Original school corporation" means a school corporation that loses territory to an acquiring school corporation by annexation.
        (7) "Real property" means land, buildings, and interests in real estate located in the annexed territory and owned by the original school corporation at the time of annexation.
    Sec. 30. (a) If a city or town annexes territory where real property of the original school corporation is located at the time of the annexation, the real property shall become the property of the acquiring school corporation. The acquiring school corporation shall make the payments provided by this section.
    (b) If the original school corporation is indebted at the time of annexation for the acquisition or construction of real property, the acquiring school corporation shall assume and pay installments of principal and interest that fall due on the indebtedness after the end of the last calendar year that the original school corporation is entitled to receive current tax receipts from property tax levies

on the property in the annexed territory.
    (c) The acquiring school corporation shall make payments to the original school corporation as the agent for payment to the holders of the indebtedness. Indebtedness must include the proceeds that were spent for:
        (1) the costs of acquisition or construction of the real property;
        (2) the architects' fees;
        (3) the attorney's fees;
        (4) other costs attributable to the acquisition or construction; and
        (5) the issuance or securing of indebtedness.
    (d) The acquiring school corporation shall pay to the original school corporation the present value of the real property, less the principal amount of the indebtedness at the time of annexation.
    (e) The present value of land that is a part of the real property means the present market value of the land.
    (f) The present value of a building that is a part of the real property means the depreciated replacement cost of the building.
    (g) A majority vote of three (3) appraisers shall determine the present value of the real property. The appraisers must include:
        (1) one (1) appraiser to be selected by the governing body of the original school corporation;
        (2) one (1) appraiser to be selected by the governing body of the acquiring school corporation; and
        (3) one (1) appraiser chosen by the appraisers selected under subdivisions (1) and (2).
If the appraisers fail to agree upon an appraiser under subdivision (3), the judge of the circuit court in the county where the real property to be appraised is located upon a motion of either school corporation shall appoint the third appraiser.
    (h) On payment by the acquiring school corporation of the present value of the real property less indebtedness, the acquiring school corporation is entitled to a deed for the real property from the original school corporation.
    Sec. 31. (a) If:
        (1) a city or town annexes territory; and
        (2) the original school corporation at the time of annexation has outstanding indebtedness, other than the indebtedness to be paid by the acquiring school corporation under section 30 of this chapter;
the city or town shall assume and pay the original school

corporation's indebtedness and part of the installments of principal and interest due on the indebtedness after the end of the last calendar year that the original school corporation is entitled to receive current tax receipts from property tax levies on the property in the annexed territory.
    (b) The proportion must be the same proportion as the valuation of the real property in the annexed territory bears to the valuation of the real property in the original school corporation, as the real property is assessed for general taxation immediately before the annexation. The payments shall be made to the original school corporation as the agent for payment to the holders of the indebtedness.
    Sec. 32. Annexation of territory by a city or town is not effective if, as a result of the annexation, the liability of the city or town or of the acquiring school corporation will cause the entire indebtedness of the city or town or of the acquiring school corporation to exceed the constitutional limitation.
    Sec. 33. This chapter may not be construed to permit or prohibit an annexation, except as provided in section 32 of this chapter, or to determine whether or to what extent an action by a city or town shall cause territory in an original school corporation to be acquired by another school corporation.
    Sec. 34. This chapter applies to all annexations. The rights, privileges, or duties from the benefit of or imposed upon a municipal corporation on or after March 9, 1959, arising on account of an annexation occurring before March 9, 1959, shall remain unimpaired and shall be exercised and enforced as if the following statutes had not been repealed:
        Acts 1893, c.109, s.1
        Acts 1919, c.84
        Acts 1927, c.219
        Acts 1935, c.158.
    Sec. 35. The following definitions apply in this section and sections 36 through 40 of this chapter:
        (1) "Annexed territory" means the territory annexed from an original school corporation by a city or town.
        (2) "Annexing school corporation" means the school corporation of a city or town that annexes territory.
        (3) "City" or "town" means a city or town that conducts its school as a school city, school town, or as part of a consolidated or metropolitan school corporation.
        (4) "Original school corporation" means a school corporation

from whom territory is annexed.
        (5) "Tax receipts" means the amounts received from the tax levy for the tuition and special school funds by the original school corporation from the annexed territory.
    Sec. 36. If a city or town has:
        (1) annexed territory from an original school corporation; and
        (2) assumed the responsibility for providing educational facilities for the school age children residing in the annexed territory before the end of the calendar year when the annexation occurs;
the auditor or auditors of the county or counties where the annexed territory is located shall pay to the treasurer of the annexing school corporation a proportion of the tax receipts payable in the year equal to the number of months and any major fraction of a month, excluding in the calculation any time falling within the summer recess, during which the annexing school corporation provides the educational facilities divided by nine (9).
    Sec. 37. If a city or town has:
        (1) annexed territory from an original school corporation after March 1 of a calendar year; and
        (2) assumed the responsibility for providing educational facilities for the school age children residing in the annexed territory during the calendar year following the year when the annexation occurs;
the auditor or auditors of the county or counties where the annexed territory is located shall pay to the treasurer of the annexing school corporation a proportion of the tax receipts payable in the following calendar year equal to the number of months and any major fraction of a month, excluding in the calculation any time falling within the summer recess, when the annexing school corporation provides the educational facilities during the following calendar year divided by nine (9).
    Sec. 38. If the annexing school corporation assumed the responsibility for providing educational facilities for only a part of the school age children residing in the annexed territory during a period, the school corporation shall receive a proportion of the amounts to be received by it under sections 36 and 37 of this chapter during the period, equal to the proportion of the children that the school corporation is responsible for compared to the total number of children in the annexed territory.
    Sec. 39. (a) The governing bodies of the annexing and original

school corporations may mutually agree upon a date that the annexing school corporation shall assume responsibility for providing facilities for all or a part of the school age children residing in the annexed territory, and payment provided in sections 36, 37, and 38 of this chapter may not be made until the annexing school corporation has assumed responsibility for providing educational facilities.
    (b) In the absence of an agreement described in subsection (a), the annexing school corporation shall assume responsibility for providing educational facilities on the first day of July succeeding the annexation. The payment under this chapter to the annexing school corporation, on account of taxes collected in the name of the original school corporation for a calendar year, may not exceed the amount that would be due from the original school corporation to the annexing school corporation for transfer tuition for the part of the year that the children from the annexed territory were educated by the annexing school corporation, had the children still been residents during the time of the original school corporation.
    (c) The amount of transfer tuition in subsection (b) shall be computed on the basis of the per capita cost of maintaining the school or schools of the annexing school corporation for the school year ending within the calendar year that tax receipts are to be paid to the annexing school corporation. The per capita cost shall be determined in the manner provided by Indiana law governing the computation of transfer tuition costs.
    Sec. 40. This chapter does not apply to an annexation by a city or town in a county having a population of more than one hundred forty-five thousand (145,000) but less than one hundred forty-eight thousand (148,000). Sections 35 through 39 of this chapter do not require the transfer of territory from one (1) school corporation to another in the county, as a result of an annexation by a city or town in the county.
    Sec. 41. (a) School boards, boards of school trustees, boards of school commissioners, and school township trustees may hire and fix the salaries for clerical personnel as necessary to assist principals of schools in which at least twelve (12) teachers are employed.
    (b) The board or trustees that hire personnel under subsection (a) may pay the salaries of the personnel out of the special school funds belonging to their respective school corporations in the manner provided by law for the payment of other school expenses.
    SECTION 8. IC 20-24 IS ADDED TO THE INDIANA CODE AS

A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]:
    ARTICLE 24. CHARTER SCHOOLS
    Chapter 1. Definitions
    Sec. 1. The definitions in this chapter apply throughout this article.
    Sec. 2. "ADM of the previous year" or "ADM of the prior year" has the meaning set forth in IC 21-3-1.6-1.1(m).
    Sec. 3. "Charter" means a contract between an organizer and a sponsor for the establishment of a charter school.
    Sec. 4. "Charter school" means a public elementary school or secondary school established under this article that:
        (1) is nonsectarian and nonreligious; and
        (2) operates under a charter.
    Sec. 5. "Conversion charter school" means a charter school established under IC 20-24-11 by the conversion of an existing school into a charter school. The term includes a new school to which students from other schools in the school corporation are assigned or transferred.
    Sec. 6. "Current ADM" has the meaning set forth in IC 21-3-1.6-1.1(n).
    Sec. 7. "Organizer" means a group or an entity that:
        (1) has been determined by the Internal Revenue Service to be operating under nonprofit status or has applied for such determination; and
        (2) enters into a contract under this article to operate a charter school.
    Sec. 8. "Proposal" refers to a proposal from an organizer to establish a charter school.
    Sec. 9. "Sponsor" means, for a charter school, one (1) of the following:
        (1) A governing body.
        (2) A state educational institution (as defined in IC 20-12-0.5-1) that offers a four (4) year baccalaureate degree.
        (3) The executive (as defined in IC 36-1-2-5) of a consolidated city.
    Chapter 2. Charter Schools Generally
    Sec. 1. A charter school may be established under this article to provide innovative and autonomous programs that do the following:
        (1) Serve the different learning styles and needs of public

school students.
        (2) Offer public school students appropriate and innovative choices.
        (3) Provide varied opportunities for professional educators.
        (4) Allow public schools freedom and flexibility in exchange for exceptional levels of accountability.
        (5) Provide parents, students, community members, and local entities with an expanded opportunity for involvement in the public school system.
    Sec. 2. A charter school is subject to all federal and state laws and constitutional provisions that prohibit discrimination on the basis of the following:
        (1) Disability.
        (2) Race.
        (3) Color.
        (4) Gender.
        (5) National origin.
        (6) Religion.
        (7) Ancestry.
    Chapter 3. Establishment of Charter Schools
    Sec. 1. A sponsor may grant a charter to an organizer to operate a charter school under this article.
    Sec. 2. A sponsor may not grant a charter to a for-profit organizer.
    Sec. 3. The organizer's constitution, charter, articles, or bylaws must contain a clause providing that upon dissolution:
        (1) all remaining assets, except funds specified in subdivision (2), shall be used for nonprofit educational purposes; and
        (2) remaining funds received from the department shall be returned to the department not more than thirty (30) days after dissolution.
    Sec. 4. (a) An organizer may submit to the sponsor a proposal to establish a charter school.
    (b) A proposal must contain at least the following information:
        (1) Identification of the organizer.
        (2) A description of the organizer's organizational structure and governance plan.
        (3) The following information for the proposed charter school:
            (A) Name.
            (B) Purposes.
            (C) Governance structure.


            (D) Management structure.
            (E) Educational mission goals.
            (F) Curriculum and instructional methods.
            (G) Methods of pupil assessment.
            (H) Admission policy and criteria, subject to IC 20-24-5.
            (I) School calendar.
            (J) Age or grade range of students to be enrolled.
            (K) A description of staff responsibilities.
            (L) A description and the address of the physical plant.
            (M) Budget and financial plans.
            (N) Personnel plan, including methods for selection, retention, and compensation of employees.
            (O) Transportation plan.
            (P) Discipline program.
            (Q) Plan for compliance with any applicable desegregation order.
            (R) The date when the charter school is expected to:
                (i) begin school operations; and
                (ii) have students attending the charter school.
            (S) The arrangement for providing teachers and other staff with health insurance, retirement benefits, liability insurance, and other benefits.
        (4) The manner in which the sponsor must conduct an annual audit of the program operations of the charter school.
    (c) This section does not waive, limit, or modify the provisions of:
        (1) IC 20-29 in a charter school where the teachers have chosen to organize under IC 20-29; or
        (2) an existing collective bargaining agreement for noncertificated employees (as defined in IC 20-29-2-11).
    Sec. 5. (a) This section applies only to a sponsor that is the executive of a consolidated city.
    (b) 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 for the establishment of a charter school. The sponsor may issue charters for charter schools located in the consolidated city.
    Sec. 6. (a) Except as provided in subsection (b), if a governing body grants a charter to establish a charter school, the governing body must provide a noncharter school that students of the same age or grade levels may attend.
    (b) The department may waive the requirement that a

governing body provide a noncharter school under subsection (a) upon the request of the governing body.
    Sec. 7. The sponsor may revoke the charter of a charter school that does not, by the date specified in the charter:
        (1) begin school operations; and
        (2) have students attending the charter school.
    Sec. 8. Before granting a charter under which more than fifty percent (50%) of the students in a school corporation will attend a charter school, the governing body of the school corporation must receive the approval of the department.
    Sec. 9. A sponsor must notify an organizer that submits a proposal under section 4 of this chapter of the:
        (1) acceptance of the proposal; or
        (2) rejection of the proposal;
not later than sixty (60) days after the organizer submits the proposal.
    Sec. 10. (a) A sponsor must notify the department of the following:
        (1) Receipt of a proposal.
        (2) Acceptance of a proposal.
        (3) Rejection of a proposal, including the reasons for the rejection.
    (b) The department shall annually do the following:
        (1) Compile the information received under subsection (a) into a report.
        (2) Submit the report in an electronic format under IC 5-14-6 to the legislative council.
    Sec. 11. If a sponsor rejects a charter school proposal, the organizer may:
        (1) amend the charter school proposal and resubmit the proposal to the same sponsor;
        (2) submit a charter school proposal to another sponsor; or
        (3) appeal the decision to the charter school review panel established by section 12 of this chapter.
    Sec. 12. (a) This section applies if the sponsor rejects a proposal.
    (b) The organizer may appeal the decision of the sponsor to the charter school review panel established by subsection (c).
    (c) The charter school review panel is established. The members of the panel are as follows:
        (1) The governor or the governor's designee.
        (2) The state superintendent, who shall chair the panel.
        (3) A member of the state board appointed by the state

superintendent.
        (4) A person with financial management experience appointed by the governor.
        (5) A community leader with knowledge of charter school issues appointed jointly by the governor and the state superintendent.
A member shall serve a two (2) year term and may be reappointed to the panel upon expiration of the member's term.
    (d) All decisions of the panel shall be determined by a majority vote of the panel's members.
    (e) Upon the request of an organizer, the panel shall meet to consider the organizer's proposal and the sponsor's reasons for rejecting the proposal. The panel must allow the organizer and sponsor to participate in the meeting.
    (f) After the panel meets under subsection (e), the panel shall make one (1) of the following findings and issue the finding to the organizer and the sponsor:
        (1) A finding that supports the sponsor's rejection of the proposal.
        (2) A finding that:
            (A) recommends that the organizer amend the proposal; and
            (B) specifies the changes to be made in the proposal if the organizer elects to amend the proposal.
        (3) A finding that approves the proposal.
The panel shall issue the finding not later than forty-five (45) days after the panel receives the request for review.
    (g) If the panel makes a finding described in subsection (f)(1), the finding is final.
    (h) If the panel makes a finding described in subsection (f)(2), the organizer may amend the proposal according to the panel's recommendations and resubmit the proposal directly to the panel.
    (i) If the panel makes a finding described in subsection (f)(3), the proposal is considered conditionally approved. The approval shall be considered final upon delivery to the panel of written notice from the organizer and an eligible sponsor that the sponsor has agreed to serve as a sponsor for the proposal approved by the panel.
    (j) Proposals approved under this section shall not be counted under any numerical limits placed upon a sponsor or set of sponsors.
    Sec. 13. (a) The department shall monitor the number of charter

schools approved by universities.
    (b) Not more than six (6) months after twenty (20) charter schools have been approved by universities, the department shall issue a report to the charter school review panel identifying:
        (1) the purpose and organization of all charter schools sponsored by universities;
        (2) the procedure by which charter schools have been approved and monitored by university sponsors; and
        (3) recommendations regarding the future of university sponsorships.
    (c) The report issued under subsection (b) shall be submitted in an electronic format under IC 5-14-6 to the legislative council.
    Sec. 14. (a) This section applies to university sponsors.
    (b) Except as provided in subsection (c), the ultimate responsibility for choosing to sponsor a charter school and responsibilities for maintaining sponsorship rest with the university's board of trustees.
    (c) The university's board of trustees may vote to assign sponsorship authority and sponsorship responsibilities to another person or entity that functions under the direction of the university's board. A decision made under this subsection shall be communicated in writing to the department and the charter school review panel.
    (d) Before a university may sponsor a charter school, the university must conduct a public meeting with public notice in the county where the charter school will be located.
    Sec. 15. (a) This section applies to charter schools sponsored by the mayor of a consolidated city.
    (b) The number of charter schools may not be more than five (5) during the 2001 calendar year.
    (c) During each year after calendar year 2001, the maximum number of charter schools is increased by five (5).
    (d) The limits resulting from subsections (b) and (c) are cumulative from year to year. However, there may not be any accumulation during the period beginning January 1, 2003, and ending December 31, 2005.
    Sec. 16. An entity or multiple divisions of the same entity may not serve simultaneously as both the organizer and the sponsor of the same charter school.
    Chapter 4. The Charter
    Sec. 1. A charter must meet the following requirements:
        (1) Be a written instrument.


        (2) Be executed by a sponsor and an organizer.
        (3) Confer certain rights, franchises, privileges, and obligations on a charter school.
        (4) Confirm the status of a charter school as a public school.
        (5) Be granted for:
            (A) not less than three (3) years; and
            (B) a fixed number of years agreed to by the sponsor and the organizer.
        (6) Provide for:
            (A) a review by the sponsor of the charter school's performance, including the progress of the charter school in achieving the academic goals set forth in the charter, at least one (1) time in each five (5) year period while the charter is in effect; and
            (B) renewal, if the sponsor and the organizer agree to renew the charter.
        (7) Specify the grounds for the sponsor to:
            (A) revoke the charter before the end of the term for which the charter is granted; or
            (B) not renew a charter.
        (8) Set forth the methods by which the charter school will be held accountable for achieving the educational mission and goals of the charter school, including the following:
            (A) Evidence of improvement in:
                (i) assessment measures, including the ISTEP program and the graduation examination;
                (ii) attendance rates;
                (iii) graduation rates (if appropriate);
                (iv) increased numbers of Core 40 diplomas (if appropriate); and
                (v) increased numbers of academic honors diplomas (if appropriate).
            (B) Evidence of progress toward reaching the educational goals set by the organizer.
        (9) Describe the method to be used to monitor the charter school's:
            (A) compliance with applicable law; and
            (B) performance in meeting targeted educational performance.
        (10) Specify that the sponsor and the organizer may amend the charter during the term of the charter by mutual consent and describe the process for amending the charter.
        (11) Describe specific operating requirements, including all the matters set forth in the application for the charter.
        (12) Specify a date when the charter school will:
            (A) begin school operations; and
            (B) have students attending the charter school.
        (13) Specify that records of a charter school relating to the school's operation and charter are subject to inspection and copying to the same extent that records of a public school are subject to inspection and copying under IC 5-14-3.
        (14) Specify that records provided by the charter school to the department or sponsor that relate to compliance by the organizer with the terms of the charter or applicable state or federal laws are subject to inspection and copying in accordance with IC 5-14-3.
        (15) Specify that the charter school is subject to the requirements of IC 5-14-1.5.
    Chapter 5. Student Admissions and Enrollment
    Sec. 1. Except as provided in this chapter, a charter school that is not a conversion charter school must be open to any student who resides in Indiana.
    Sec. 2. (a) A student may attend a charter school outside the district in which the student resides if the student's parent determines that an academic program at the charter school would enhance the student's academic opportunities.
    (b) If the governing body of the school corporation in which the student resides determines that a transfer would not improve the student's academic opportunities, the governing body may appeal to the state board. Not later than forty-five (45) days after receiving the appeal, the state board shall conduct a hearing and decide whether to uphold or reverse the parent's decision to enroll the student in the charter school.
    (c) During the state board's consideration, the parents of the student may testify, but the governing body has the burden of proof for demonstrating that the charter school does not provide additional or unique academic opportunities that exceed those available at the school corporation.
    Sec. 3. Except as provided in this chapter, a conversion charter school must be open to any student residing in the local school corporation. By joint agreement of the sponsor and organizer, a conversion charter school may enroll students residing outside the local school corporation.
    Sec. 4. Except as provided in this chapter, a charter school may

not establish admission policies or limit student admissions in any manner in which a public school is not permitted to establish admission policies or limit student admissions.
    Sec. 5. (a) Except as provided in subsections (b), (c), and (d), a charter school must enroll any eligible student who submits a timely application for enrollment.
    (b) This subsection applies if the number of applications for a program, class, grade level, or building exceeds the capacity of the program, class, grade level, or building. If a charter school receives a greater number of applications than there are spaces for students, each timely applicant must be given an equal chance of admission.
    (c) A charter school may limit new admissions to the charter school to:
        (1) ensure that a student who attends the charter school during a school year may continue to attend the charter school in subsequent years; and
        (2) allow the siblings of a student who attends a charter school to attend the charter school.
    (d) This subsection applies to an existing school that converts to a charter school under IC 20-24-11. During the school year in which the existing school converts to a charter school, the charter school may limit admission 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).
    Chapter 6. Employment of Teachers and Other Personnel; Collective Bargaining
    Sec. 1. (a) Except as provided in subsection (b), 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.
    (b) Teachers in a conversion charter school are employees of both the charter school and the school corporation that sponsored the charter school. For purposes of the collective bargaining agreement, conversion charter school teachers are considered employees of the school corporation that sponsored the charter school.
    (c) All benefits accrued by teachers as employees of the conversion charter school are the financial responsibility of the conversion charter school. The conversion charter school shall pay those benefits directly or reimburse the school corporation for the

cost of the benefits.
    (d) All benefits accrued by a teacher during the time the teacher was an employee only of the school corporation that sponsored the charter school are the financial responsibility of the school corporation. The school corporation shall pay those benefits directly or reimburse the conversion charter school for the cost of the benefits.
    (e) For any other purpose not otherwise stated in this section, a teacher is an employee of the charter school.
    Sec. 2. Individuals must choose to be teachers at a charter school voluntarily, and a charter school must voluntarily choose those individuals to be its teachers.
    Sec. 3. Employees of a charter school may organize and bargain collectively under IC 20-29.
    Sec. 4. (a) This section applies to a conversion charter school.
    (b) After the conversion, the teachers in a conversion charter school remain part of the bargaining unit of the sponsor and are subject to all the provisions of the collective bargaining agreement.
    (c) The governing body, the equivalent body of the conversion charter school, and the exclusive representative may by mutual agreement grant a waiver of a specific provision of the collective bargaining agreement.
    (d) Noncertificated employees (as defined in IC 20-29-2-11) remain in existing bargaining units and are covered under existing collective bargaining agreements.
    Sec. 5. (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 20-28-5; or
        (2) be in the process of obtaining a license to teach in a public school in Indiana under the transition to teaching program established by IC 20-28-4-2.
    (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 to students in a charter school a service:
        (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. 6. 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. 7. (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. 8. The decision by a sponsor whether to grant a charter is not subject to restraint by a collective bargaining agreement.
    Sec. 9. If 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 the adjustments, the school corporation eliminates a teaching position within the corporation, the legal or contractual provisions, if any, that otherwise apply to the teacher in one (1) of the 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. 10. (a) The governing body:
        (1) must grant a transfer of not more than two (2) years; and
        (2) may grant a transfer for a period in addition to the period required in 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 nonconversion charter school.


    (b) During the term of the 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 20-28-6, IC 20-28-7, or IC 20-28-8.
    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 later than the date established by the department for determining average daily membership, and after May 31 each year, the organizer shall submit to the department the following information on a form prescribed by the department:
        (1) The number of students enrolled in the charter school.
        (2) The name and address of each student.
        (3) The name of the school corporation in which the student has legal settlement.
        (4) The name of the school corporation, if any, that the student attended during the immediately preceding school year.
        (5) The grade level in which the student will enroll in the charter school.
The department shall verify the accuracy of the information reported.
    (b) This subsection applies after December 31 of the calendar year in which a charter school begins its initial operation. The department shall distribute to the organizer the amount determined under IC 21-3-1.7 for the charter school. The department shall make a distribution under this subsection at the same time and in the same manner as the department makes a distribution under IC 21-3-1.7.
    (c) The department shall provide to the department of local government finance the following information:
        (1) For each county, the number of students who:
            (A) have legal settlement in the county; and
            (B) attend a charter school.
        (2) The school corporation in which each student described in subdivision (1) has legal settlement.
        (3) The charter school that a student described in subdivision (1) attends and the county in which the charter school is located.
        (4) The amount determined under IC 6-1.1-19-1.5(f) STEP EIGHT for 2004 and IC 6-1.1-19-1.5(b) STEP SIX for 2005 for each school corporation described in subdivision (2).
        (5) The amount determined under STEP TWO of the following formula:
            STEP ONE: Determine the product of:
                (A) the amount determined under IC 21-3-1.7-6.7(d) or IC 21-3-1.7-6.7(e) for a charter school described in subdivision (3); multiplied by
                (B) thirty-five hundredths (0.35).
            STEP TWO: Determine the product of:
                (A) the STEP ONE amount; multiplied by
                (B) the current ADM of a charter school described in subdivision (3).
        (6) The amount determined under STEP THREE of the following formula:
            STEP ONE: Determine the number of students described in subdivision (1) who:
                (A) attend the same charter school; and
                (B) have legal settlement in the same school corporation located in the county.
            STEP TWO: Determine the subdivision (5) STEP ONE amount for a charter school described in STEP ONE (A).
            STEP THREE: Determine the product of:
                (A) the STEP ONE amount; multiplied by
                (B) the STEP TWO amount.
    Sec. 3. (a) This section applies to a conversion charter school.
    (b) Not later than the date established by the department for determining average daily membership and after July 2, the organizer shall submit to a governing body on a form prescribed by the department the information reported under section 2(a) of this chapter for each student who:
        (1) is enrolled in the organizer's conversion charter school; and
        (2) has legal settlement in the governing body's school corporation.
    (c) Beginning not more than sixty (60) days after the department receives the information reported under section 2(a) of this chapter, the department shall distribute to the organizer:
        (1) tuition support and other state funding for any purpose for students enrolled in the conversion charter school;
        (2) a proportionate share of state and federal funds received:
            (A) for students with disabilities; or
            (B) staff services for students with disabilities;
        enrolled in the conversion charter school; and
        (3) a proportionate share of funds received under federal or state categorical aid programs for students who are eligible for the federal or state categorical aid and are enrolled in the conversion charter school;
for the second six (6) months of the calendar year in which the conversion charter school is established. The department shall make a distribution under this subsection at the same time and in the same manner as the department makes a distribution to the governing body of the school corporation in which the conversion charter school is located. A distribution to the governing body of the school corporation in which the conversion charter school is located is reduced by the amount distributed to the conversion charter school. This subsection does not apply to a conversion charter school after December 31 of the calendar year in which the conversion charter school is established.
    (d) This subsection applies beginning with the first property tax distribution described in IC 6-1.1-27-1 to the governing body of the school corporation in which a conversion charter school is located after the governing body receives the information reported under subsection (b). Not more than ten (10) days after the governing body receives a property tax distribution described in IC 6-1.1-27-1, the governing body shall distribute to the conversion charter school the amount determined under STEP THREE of the following formula:
        STEP ONE: Determine the quotient of:
            (A) the number of students who:
                (i) are enrolled in the conversion charter school; and
                (ii) were counted in the ADM of the previous year for the school corporation in which the conversion charter school is located; divided by
            (B) the current ADM of the school corporation in which the conversion charter school is located.
        In determining the number of students enrolled under clause

(A)(i), each kindergarten student shall be counted as one-half (1/2) student.
        STEP TWO: Determine the total amount of the following revenues to which the school corporation in which the conversion charter school is located is entitled for the second six (6) months of the calendar year in which the conversion charter school is established:
            (A) Revenues obtained by the school corporation's:
                (i) general fund property tax levy; and
                (ii) excise tax revenue (as defined in IC 21-3-1.7-2).
            (B) The school corporation's certified distribution of county adjusted gross income tax revenue under IC 6-3.5-1.1 that is to be used as property tax replacement credits.
        STEP THREE: Determine the product of:
            (A) the STEP ONE amount; multiplied by
            (B) the STEP TWO amount.
    (e) Subsection (d) does not apply to a conversion charter school after the later of the following dates:
        (1) December 31 of the calendar year in which the conversion charter school is established.
        (2) Ten (10) days after the date on which the governing body of the school corporation in which the conversion charter school is located receives the final distribution described in IC 6-1.1-27-1 of revenues to which the school corporation in which the conversion charter school is located is entitled for the second six (6) months of the calendar year in which the conversion charter school is established.
    (f) This subsection applies during the second six (6) months of the calendar year in which a conversion charter school is established. A conversion charter school may apply for an advance from the charter school advancement account under IC 21-1-32 in the amount determined under STEP FOUR of the following formula:
        STEP ONE: Determine the result under subsection (d) STEP ONE (A).
        STEP TWO: Determine the difference between:
            (A) the conversion charter school's current ADM; minus
            (B) the STEP ONE amount.
        STEP THREE: Determine the quotient of:
            (A) the STEP TWO amount; divided by
            (B) the conversion charter school's current ADM.


        STEP FOUR: Determine the product of:
            (A) the STEP THREE amount; multiplied by
            (B) the quotient of:
                (i) the subsection (d) STEP TWO amount; divided by
                (ii) two (2).
    Sec. 4. (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.
    (b) This subsection applies to a sponsor that is a state educational institution described in IC 20-24-1-7(2). In a calendar year, a state educational institution may 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 during the calendar year under IC 6-1.1-19-12 and IC 21-3-1.7-8.2.
    Sec. 5. (a) An organizer may apply for and accept for a charter school:
        (1) independent financial grants; and
        (2) funds from public or private sources other than the department.
    (b) An organizer shall make all applications, enter into all contracts, and sign all documents necessary for the receipt by a charter school of aid, money, or property from the federal government.
    Sec. 6. 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.
    Sec. 7. When a charter school uses public funds for the construction, reconstruction, alteration, or renovation of a public building, bidding and wage determination laws and all other statutes and rules apply.
    Sec. 8. A sponsor may request and receive financial reports concerning a charter school from the organizer at any time.
    Sec. 9. (a) This section applies if:
        (1) a sponsor:
            (A) revokes a charter before the end of the term for which the charter is granted; or
            (B) does not renew a charter; or
        (2) a charter school otherwise terminates its charter before the end of the term for which the charter is granted.
    (b) Any local or state funds that remain to be distributed to the charter school in the calendar year in which an event described in subsection (a) occurs shall be distributed as follows:
        (1) First, to the common school loan fund to repay any existing obligations of the charter school under IC 21-1-32.
        (2) Second, to the entities that distributed the funds to the charter school. A distribution under this subdivision shall be on a pro rata basis.
    (c) If the funds described in subsection (b) are insufficient to repay all existing obligations of the charter school under IC 21-1-32, the state shall repay any remaining obligations of the charter school under IC 21-1-32 from the amount appropriated for distributions under IC 21-3-1.7.
    Chapter 8. Charter School Powers and Exemptions
    Sec. 1. A charter school may do the following:
        (1) Sue and be sued in its own name.
        (2) For educational purposes, acquire real and personal property or an interest in real and personal property by purchase, gift, grant, devise, or bequest.
        (3) Convey property.
        (4) Enter into contracts in its own name, including contracts for services.
    Sec. 2. A charter school may not do the following:
        (1) Operate at a site or for grades other than as specified in the charter.
        (2) Charge tuition to any student residing within the school corporation's geographic boundaries. However, a charter school may charge tuition for:
            (A) a preschool program, unless charging tuition for the preschool program is barred under federal law; or
            (B) a latch key program;
        if the charter school provides those programs.
        (3) Except for a foreign exchange student who is not a United States citizen, enroll a student who is not a resident of Indiana.
        (4) Be located in a private residence.
        (5) Provide home based instruction.
    Sec. 3. For each charter school established under this article, the charter school and the organizer are accountable to the sponsor for ensuring compliance with:
        (1) applicable federal and state laws;
        (2) the charter; and
        (3) the Constitution of the State of Indiana.
    Sec. 4. Except as specifically provided in this article and the statutes listed in section 5 of this chapter, the following do not apply to a charter school:
        (1) An Indiana statute applicable to a governing body or school corporation.
        (2) A rule or guideline adopted by the state board.
        (3) A rule or guideline adopted by the professional standards board established by IC 20-28-2-1(a), except for those rules that assist a teacher in gaining or renewing a standard or advanced license.
        (4) A local regulation or policy adopted by a school corporation unless specifically incorporated in the charter.
    Sec. 5. The following statutes and rules and guidelines adopted under the following statutes apply to a charter school:
        (1) IC 5-11-1-9 (required audits by the state board of accounts).
        (2) IC 20-26-6-2 (unified accounting system).
        (3) IC 20-35 (special education).
        (4) IC 20-26-5-10 and IC 20-28-5-9 (criminal history).
        (5) IC 20-26-5-6 (subject to laws requiring regulation by state agencies).
        (6) IC 20-28-7-14 (void teacher contract when two (2) contracts are signed).
        (7) IC 20-28-10-12 (nondiscrimination for teacher marital status).
        (8) IC 20-28-10-14 (teacher freedom of association).
        (9) IC 20-28-10-17 (school counselor immunity).
        (10) For conversion charter schools only, IC 20-28-6, IC 20-28-7, IC 20-28-8, IC 20-28-9, and IC 20-28-10.
        (11) IC 20-33-2 (compulsory school attendance).
        (12) IC 20-33-3 (limitations on employment of children).
        (13) IC 20-33-8-19, IC 20-33-8-21, and IC 20-33-8-22 (student due process and judicial review).
        (14) IC 20-33-8-16 (firearms and deadly weapons).
        (15) IC 20-34-3 (health and safety measures).
        (16) IC 20-33-9 (reporting of student violations of law).
        (17) IC 20-30-3-2 and IC 20-30-3-4 (patriotic commemorative observances).
        (18) IC 20-31-3, IC 20-32-4, IC 20-32-5, IC 20-32-6, IC 20-32-8, or any other statute, rule, or guideline related to standardized testing (assessment programs, including

remediation under the assessment programs).
        (19) IC 20-33-7 (parental access to education records).
        (20) IC 20-31 (accountability for school performance and improvement).
    Sec. 6. (a) A charter school may not duplicate a Bureau of Apprenticeship and Training (BAT) approved Building Trades apprenticeship program.
    (b) A student in a charter school may not be excluded from participating in a BAT approved Building Trades apprenticeship program that is offered in a noncharter school.
    Chapter 9. Oversight of Charter Schools; Reporting Requirements; Revocation of Charter
    Sec. 1. An organizer that has established a charter school shall submit an annual report to the department for informational and research purposes.
    Sec. 2. An annual report under this chapter must contain the following information for a charter school:
        (1) Results of all standardized testing, including ISTEP program testing and the graduation examination.
        (2) A description of the educational methods and teaching methods employed.
        (3) Daily attendance records.
        (4) Graduation statistics (if appropriate), including attainment of Core 40 and academic honors diplomas.
        (5) Student enrollment data, including the following:
            (A) The number of students enrolled.
            (B) The number of students expelled.
            (C) The number of students who discontinued attendance at the charter school and the reasons for the discontinuation.
    Sec. 3. The sponsor shall oversee a charter school's compliance with:
        (1) the charter; and
        (2) all applicable laws.
    Sec. 4. Notwithstanding the provisions of the charter, a sponsor that grants a charter may revoke the charter at any time before the expiration of the term of the charter if the sponsor determines that at least one (1) of the following occurs:
        (1) The organizer fails to comply with the conditions established in the charter.
        (2) The charter school established by the organizer fails to meet the educational goals set forth in the charter.


        (3) The organizer fails to comply with all applicable laws.
        (4) The organizer fails to meet generally accepted government accounting principles.
        (5) One (1) or more grounds for revocation exist as specified in the charter.
    Sec. 5. A charter school shall report the following to the sponsor:
        (1) Attendance records.
        (2) Student performance data.
        (3) Financial information.
        (4) Any information necessary to comply with state and federal government requirements.
        (5) Any other information specified in the charter.
    Sec. 6. The organizer of a charter school shall publish an annual performance report that provides the information required under IC 20-20-8-8 in the same manner that a school corporation publishes an annual report under IC 20-20-8.
    Chapter 10. Student Transfers From Charter School to Public Noncharter Schools
    Sec. 1. A public noncharter school that receives a transfer student from a charter school may not discriminate against the student in any way, including by placing the student:
        (1) in an inappropriate age group according to the student's ability;
        (2) below the student's abilities; or
        (3) in a class where the student has already mastered the subject matter.
    Chapter 11. Conversion of Existing Public Schools Into Charter Schools
    Sec. 1. An existing public elementary or secondary school may be converted into a charter school if the following conditions apply:
        (1) At least sixty percent (60%) of the teachers at the school have signed a petition requesting the conversion.
        (2) At least fifty-one percent (51%) of the parents of students at the school have signed a petition requesting the conversion.
    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 20-24-3 to the governing body of the school corporation in which the 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.
    SECTION 9. IC 20-25 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]:
    ARTICLE 25. INDIANAPOLIS PUBLIC SCHOOLS
    Chapter 1. Applicability
    Sec. 1. This article applies to a common school corporation that:
        (1) is located in whole or in part in the most populous township in a county having a population of more than seven hundred thousand (700,000); and
        (2) serves the largest geographical territory of any school corporation in the township.
    Chapter 2. Definitions
    Sec. 1. The definitions in this chapter apply throughout this article.
    Sec. 2. "Administrator" means a full-time employee of a school in the school city who is:
        (1) a principal;
        (2) an assistant principal; or
        (3) any other educational manager at the school.
    Sec. 3. "Assessment program" refers to the assessment program established under IC 20-31-8 and a test approved by the board's plan developed under IC 20-25-10.
    Sec. 4. "Assessment test" refers to a test administered to students under the assessment program established under IC 20-31-8.
    Sec. 5. "Board" refers to the local board of school commissioners established by IC 20-25-3-1.
    Sec. 6. "Designated grade level" refers to a grade level tested under the assessment program established under IC 20-31-8.
    Sec. 7. "Educators" means teachers and administrators.
    Sec. 8. "Graduation rate" means the graduation rate for a high school:
        (1) determined by the method described in 511 IAC 6.1-1-2; and
        (2) calculated by the department.
    Sec. 9. "Neighborhood school" means the school of the school city located closest to a student's residence.
    Sec. 10. "Remediation rate" means the percentage of students,

aggregated by grade, in a school who fail to meet state achievement standards in a designated grade level.
    Sec. 11. "Residence" has the meaning set forth in IC 20-26-11-1.
    Sec. 12. "School city" refers to a school corporation to which this article applies.
    Sec. 13. "State achievement standards" refers to the state achievement standards by which the assessment program established under IC 20-31-8 assesses students.
    Sec. 14. "Student" refers to a student enrolled in a school city.
    Sec. 15. "Student attendance rate" means the student attendance rate for a school as:
        (1) determined by the method described in 511 IAC 6.1-1-2; and
        (2) calculated by the department.
    Sec. 16. "Student performance improvement level" refers to a level of performance improvement in student academic achievement established by the board.
    Sec. 17. "Teacher" means a:
        (1) certified; and
        (2) full-time;
teacher in the school city.
    Sec. 18. "Teacher attendance rate" means the attendance rate for teachers at a school calculated by the board in the same manner as described for the student attendance rate in section 15(1) of this chapter.
    Chapter 3. Board of School Commissioners; Officers and Employees
    Sec. 1. (a) The government, management, and control of all common schools and common school libraries in the school city are vested in a board of school commissioners that consists of seven (7) school commissioners.
    (b) The corporate name of the school city is "The Board of School Commissioners of the City of ____________" (the blank being filled with the name of the civil city), and by that corporate name the school city shall:
        (1) contract;
        (2) be contracted with;
        (3) sue; and
        (4) be sued.
    Sec. 2. (a) The school city board has the following powers:
        (1) The powers conferred upon school cities by Acts 1871, c.15.


        (2) The powers conferred by law as of March 9, 1931, on boards of school commissioners in cities having a population of one hundred thousand (100,000) or more.
        (3) The powers conferred by all laws in effect as of March 9, 1931, on boards of school commissioners in cities having a population of more than two hundred thousand (200,000) or more than three hundred thousand (300,000).
        (4) The powers conferred under IC 20-26-1, IC 20-26-2, IC 20-26-3, IC 20-26-4, IC 20-26-5, IC 20-26-6, and IC 20-26-7, except as otherwise provided in this chapter.
    (b) A school city board provided for by this chapter, in its respective school city, is liable for and must pay and discharge all of the indebtedness, liabilities, and obligations of a board elected in the school city under any of the statutes listed in this section and under this chapter.
    (c) The board is vested with the title and ownership of all property of every kind of the existing school city.
    Sec. 3. (a) A member of the board must:
        (1) be a resident voter of the school city; and
        (2) have been a resident of the school city for at least one (1) year immediately preceding the member's election.
    (b) A board member may not:
        (1) serve in an elective or appointive office under the board or under the government of the civil city while serving on the board; or
        (2) knowingly have a pecuniary interest as described in IC 35-44-1-3(g) in a contract or purchase with the school city in which the member is elected.
If, at any time after a member is elected to the board, the board member knowingly acquires a pecuniary interest in a contract or purchase with the school city, the member is disqualified to continue as a member of the board, and a vacancy in the office is created.
    (c) Each member of the board shall, before assuming the duties of office, take an oath, before a person qualified to administer oaths, that:
        (1) the member possesses all the qualifications required by this chapter for membership on the board;
        (2) the member will honestly and faithfully discharge the duties of office;
        (3) the member will not, while serving as a member of the board, become interested, directly or indirectly, in any

contract with or claim against the school city, except as authorized by law; and
        (4) in the performance of official duties as a member of the board, including the selection of the board's officers, agents, and employees, the member will not be influenced by any consideration of politics or religion; and
        (5) the member will be controlled in the selection of officers, agents, and employees only by considerations of merit, fitness, and qualification.
    (d) Board members are entitled to receive compensation not to exceed the amount allowed under IC 20-26-4-6 and a per diem not to exceed the rate approved for members of the city-county council established under IC 36-3-4 for attendance at each regular and committee meeting as determined by the board.
    Sec. 4. (a) The board consists of seven (7) members. A member:
        (1) must be elected on a nonpartisan basis in primary elections held in the county as specified in this section; and
        (2) serves a four (4) year term.
    (b) Five (5) members shall be elected from the school board districts in which the members reside and two (2) members must be elected at large. Not more than two (2) of the members who serve on the board may reside in the same school board district.
    (c) If a candidate runs for one (1) of the district positions on the board, only eligible voters residing in the candidate's district may vote for that candidate. If a person is a candidate for one (1) of the at-large positions, eligible voters from all the districts may vote for that candidate.
    (d) If a candidate files to run for a position on the board, the candidate must specify whether the candidate is running for a district or an at-large position.
    (e) A candidate who runs for a district or an at-large position wins if the candidate receives the greatest number of votes of all the candidates against whom the candidate runs.
    (f) Districts shall be established within the school city by the state board. The districts must be drawn on the basis of precinct lines, and as nearly as practicable, of equal population with the population of the largest district not to exceed the population of the smallest district by more than five percent (5%). District lines must not cross precinct lines. The state board shall establish:
        (1) balloting procedures for the election under IC 3; and
        (2) other procedures required to implement this section.
    (g) A member of the board serves under section 3 of this

chapter.
    (h) A vacancy in the board shall be filled temporarily by the board as soon as practicable after the vacancy occurs. The member chosen by the board to fill a vacancy holds office until the member's successor is elected and qualified. The successor shall be elected at the next regular school board election occurring after the date on which the vacancy occurs. The successor fills the vacancy for the remainder of the term.
    (i) An individual elected to serve on the board begins the individual's term on July 1 of the year of the individual's election.
    (j) Notwithstanding any law to the contrary, each voter must cast a vote for a school board candidate or school board candidates by voting system or paper ballot. However, the same method used to cast votes for all other offices for which candidates have qualified to be on the election ballot must be used for the board offices.
    Sec. 5. The board in a school city shall organize in the manner set forth in IC 20-26-4-1.
    Sec. 6. (a) A member of a standing committee of the board provided for by the board's rules shall be appointed by the president within three (3) weeks after the president's election to the office of president.
    (b) Subject to the limitations in this chapter, the board may fix the salaries of each officer and employee of the board.
    (c) The board in:
        (1) electing and choosing a general superintendent; and
        (2) employing agents and employees that the board considers necessary to conduct the business of the school city;
shall choose individuals whose qualifications peculiarly fit the positions the individuals will occupy.
    (d) The board shall contract for and establish the amount of salary or compensation to be paid to each officer, agent, and employee chosen or elected by the board. The board shall adopt a schedule of salaries that the board considers proper, and for the purpose of establishing a salary schedule, the board may divide teachers, principals, and other employees into classes based upon efficiency, qualifications, experience, and responsibility. Each principal, teacher, or employee in a class shall receive the same regular salary given to each of the other members of the same class, subject to the provisions of this article.
    (e) The board may:
        (1) by rule fix the time and the number of meetings of the

board, except that one (1) regular meeting must be held in each calendar month; and
        (2) make, amend, and repeal bylaws and rules for:
            (A) the board's own procedure; and
            (B) the government and management of:
                (i) the board's schools; and
                (ii) property under the board's control.
    Sec. 7. Each legislative act of the board must be by written resolution.
    Sec. 8. (a) The board may:
        (1) determine the number of employees of the board;
        (2) prescribe the employees' duties; and
        (3) fix the employees' compensation.
    (b) The board shall adopt rules for obtaining, by open competition and without regard to religious or political belief, lists of candidates from which all teachers and all other officers and employees are selected.
    (c) The selection of a candidate as a teacher, an officer, or an employee must be based solely on the fitness of the candidate under the rules adopted under subsection (b).
    Sec. 9. (a) The board shall appoint a general superintendent if a vacancy occurs or will imminently occur in the office of the superintendent due to the:
        (1) expiration of the term; or
        (2) death, resignation, or removal from office;
of the incumbent superintendent.
    (b) The board's election of a superintendent shall be effected by resolution of the board. The resolution must specify the day on which the superintendent's term begins and the day on which the superintendent's term ends. The board may not appoint a superintendent for a term longer than four (4) years.
    (c) The superintendent's salary must be prescribed in the resolution declaring the superintendent's appointment and must be paid to the superintendent in a frequency determined by the board, but not less frequently than monthly.
    (d) The board shall:
        (1) act upon the recommendations of the superintendent; and
        (2) make other decisions and perform other duties that fall within the general framework of the laws of the state.
    Sec. 10. (a) The superintendent shall act as general administrator of the school city and make recommendations to the board concerning:


        (1) the conduct of the schools;
        (2) the employment and dismissal of personnel;
        (3) the purchase of supplies;
        (4) the construction of buildings; and
        (5) all other matters pertaining to the conduct of the schools within the general framework of the school laws of the state.
    (b) The superintendent shall:
        (1) attend all meetings of the board, except when the superintendent's appointment is under consideration;
        (2) carry out the orders of the board; and
        (3) make all other decisions and perform all other duties that are prescribed by law or that reasonably fall within the superintendent's power and jurisdiction.
    Sec. 11. (a) Except as provided in subsections (b) and (c), a payment made from money of the board must be made in accordance with budget appropriations.
    (b) If a payment is from a fund of the board that is not subject to budgeting and appropriation but has been transferred to the board for specific purposes, the payment must be made:
        (1) in accordance with the terms of the fund being drawn upon that are made available to the board; and
        (2) after the superintendent has approved the proposed payment.
    (c) If a payment is from a fund of the board that is not subject to budgeting and appropriation and is unrestricted as to the purposes for which it may be expended, the payment must be made in accordance with the prior:
        (1) direction of the superintendent; or
        (2) order of the board.
    (d) Not later than thirty (30) days after a payment under subsection (b) or (c) is made from a fund of the board, the superintendent shall report the payment to the board for approval.
    Sec. 12. (a) An appointment or discharge of an employee of the school city must be:
        (1) made in conformity with the rules of the board; and
        (2) reported at the meeting of the board that follows the date of each appointment or discharge by the superintendent.
    (b) The superintendent's actions reported to the board under this section are subject to the approval of the majority of the board.
    (c) A discharge operates as a suspension until the discharge is approved by the board.
    (d) A school employee of the school city, except a probationary employee discharged before the end of the employee's probationary period, is entitled to request a hearing before being discharged. Upon written request for a hearing from the school employee, the superintendent shall appoint a hearing examiner.
    (e) The hearing examiner appointed by the superintendent under subsection (d) may be an individual on the school city's administrative staff or the school city's counsel, as long as the hearing examiner:
        (1) did not recommend the discharge of the employee;
        (2) will not be a witness at the hearing; and
        (3) has no involvement in the recommendation to discharge the employee.
    (f) The hearing examiner shall:
        (1) make a written report of the hearing examiner's findings and conclusions; and
        (2) submit the report to the superintendent.
    (g) An employee may appeal in writing an adverse decision of the hearing examiner to the board. Upon appeal, the board shall review the decision of the hearing examiner and may receive additional evidence or testimony.
    (h) The board shall adopt rules and procedures that afford an employee, other than a probationary employee, the right to a hearing and the right to appeal under this section.
    (i) This section does not apply to teachers.
    Sec. 13. (a) Money may not be drawn from the treasury of the board except for appropriations made:
        (1) by the board; and
        (2) upon an aye and nay vote recorded in the board's minutes.
    (b) An appropriation may not be made for a period extending beyond December 31 of the current calendar year.
    (c) Except as otherwise provided in this article, at the end of a fiscal year, all unexpended balances of all appropriations, except appropriations from tuition funds and the capital projects fund, revert to the board's general fund.
    (d) General fund money that has been obligated but not paid at the end of a fiscal year may be paid without a new appropriation. Except as otherwise provided in this article, money obligated under this subsection does not revert to the board's general fund at the end of the fiscal year in which the money is appropriated, unless the board by affirmative act causes the money to revert.
    Sec. 14. (a) The books, accounts, and vouchers of the board and

of all the board's officers and employees may be examined by the state board of accounts at a time selected by the state board of accounts.
    (b) An officer or employee of the board shall, on request of the state board of accounts:
        (1) produce and submit to the state board of accounts for examination all:
            (A) books;
            (B) papers;
            (C) documents;
            (D) vouchers;
            (E) accounts; and
            (F) records;
        of the board in the possession of the officer or employee or belonging to the office of the officer or employee; and
        (2) assist in every way the state board of accounts in its work in making an examination.
    Sec. 15. (a) Money payable to the board must be paid to the board's treasurer. The treasurer's receipt for the money must be filed with the business manager of the board.
    (b) The business manager, after receiving the treasurer's receipt, shall issue a quietus. The business manager's quietus alone is sufficient evidence of payment to the board.
    (c) Only the treasurer of the board may collect or receive money payable to the board. A payment made to an individual other than the treasurer and a receipt given by an individual other than the treasurer are void as against the board.
    Chapter 4. General Administrative Provisions
    Sec. 1. A contract or an obligation is not binding on the board unless the board makes an appropriation for the contract or obligation.
    Sec. 2. (a) A contract involving more than seventy-five thousand dollars ($75,000) must be:
        (1) in writing;
        (2) executed in the name of the board by:
            (A) the board's business manager; or
            (B) another board designated employee; and
        (3) approved by the board.
    (b) If money for a contract or purchase has been appropriated by the board, the designated employee may make contracts and purchases not exceeding seventy-five thousand dollars ($75,000) in any one (1) transaction. A contract and purchase under this

subsection must be reported to the board at its next regular meeting.
    (c) A purchase of supplies or materials may not be made from one (1) person, firm, limited liability company, or corporation at any one (1) time or in any one (1) transaction totalling more than ten thousand dollars ($10,000) unless bids for the purchase of the supplies or the materials have been advertised and accepted. The board shall determine the mode and manner of advertising for bids for supplies and materials.
    Sec. 3. (a) This section does not apply if the board by formal vote elects to:
        (1) build;
        (2) enlarge;
        (3) make alterations to; or
        (4) make improvements to;
a school or building owned by the board if the project described in subdivisions (1) through (4) will cost not more than fifteen thousand dollars ($15,000) and the board intends to complete the project using its own employees.
    (b) If subsection (a) does not apply and the board determines to:
        (1) build;
        (2) enlarge;
        (3) make alterations to; or
        (4) make improvements to;
a school or building owned by the board, the cost of which is estimated to be more than ten thousand dollars ($10,000), the business manager or other board designated employee shall advertise for bids in the manner provided in subsection (c).
    (c) The advertisements for bids must be placed as follows:
        (1) One (1) advertisement must be placed each week for three (3) weeks.
        (2) The first advertisement must be placed at least twenty-one (21) days before the bids are opened.
        (3) The advertisement must be placed in two (2) newspapers of general circulation in the city.
The board shall enter in full in the minutes that advertisements for bids have been placed under this subsection.
    (d) If bids are taken under this section, a bid must be:
        (1) enclosed by the bidder in an envelope sealed by the bidder; and
        (2) presented at a meeting of the board or the bid committee of the board at the time and place fixed by the advertisement.


A bid may not be received after the time established in the advertisement.
    (e) The business manager at the hour established in the advertisements and in the presence of the board or the bid committee shall open all the bids. The bids must then be publicly read by a designated employee and be immediately entered in full in the records of the board.
    (f) The board shall, by general rules, specify the condition of each bid, and only the lowest and best bids from responsible bidders may be accepted. The board may, if the board has reason to suspect collusion among bidders, reject the bids of all bidders involved in the collusion.
    Sec. 4. (a) Notwithstanding any other law, the board may designate a committee of the board, which may consist of employees or officers of the board, to open or tabulate bids at a date, time, and place fixed by advertisement for:
        (1) the purchase of:
            (A) supplies;
            (B) material;
            (C) equipment; or
            (D) land;
        (2) the building, enlargement, or alteration of any school building; or
        (3) any other purpose.
    (b) The committee of the board shall open and tabulate each bid that is presented to the committee. The bids shall be:
        (1) read and tabulated publicly;
        (2) immediately entered in the record of the board; and
        (3) reported to the board at the board's next meeting.
    (c) A bid shall be accepted or rejected by the committee of the board under this section. The bid shall be accepted or rejected by the board in an official board meeting.
    Sec. 5. (a) The board may annually levy taxes in an amount the board determines is necessary to:
        (1) produce income sufficient to conduct and carry on the work of the board; and
        (2) meet all payments of principal and interest on bonds, notes, or other obligations of the board that mature in the year the levy is made.
The fund arising from a levy made by the board under this section is the board's general fund. The general fund may lawfully be used by the board for any purpose within the scope of the duties of the

board as imposed by law.
    (b) The board shall record the amount of the annual levy in its minutes.
    Sec. 6. (a) The board may periodically, as the need arises, borrow money and issue school building bonds to supply the school city with funds:
        (1) to buy real estate;
        (2) to erect buildings for school or administrative purposes;
        (3) to enlarge, remodel, and repair school buildings; or
        (4) for one (1) or more of the purposes described in subdivisions (1) through (3).
The proceeds of the sale of bonds under this subsection may not be used for a purpose other than a purpose described in subdivisions (1) through (4).
    (b) The board may periodically, as the need arises, issue school funding bonds to take up and retire the principal and accrued interest of any outstanding bonds of the school city. School funding bonds may be issued only if the board determines it is to the advantage of the school city to refund the outstanding bonds of the school city. A school funding bond may not be issued and the proceeds of a school funding bond may not be used for a purpose other than to refund or take up and discharge outstanding bonds of the school city. Any preexisting bonds for which the school city is liable under this chapter are outstanding bonds of the school city under this subsection.
    (c) Before school building bonds may be issued under subsection (a), the board shall, by a resolution entered into the record in the board's corporate minutes, demonstrate a particular need for the money and the inability of the school city to supply the money from any other applicable fund under the control of the board. Before school funding bonds may be issued under subsection (b), the board shall, by a resolution entered into the record of the board's corporate minutes, provide a description of the bonds to be taken up, including the kind, date, date of maturity, and amount of the bonds.
    (d) Bonds issued under this section must:
        (1) be serial bonds;
        (2) bear interest at a rate payable semiannually; and
        (3) mature at a time or times fixed in the resolution of the board.
    (e) A bond to be issued under this section may not be delivered until the price of the bond is paid to the treasurer of the school city

in:
        (1) money for school building bonds; or
        (2) money or bonds to be refunded for school funding bonds.
A bond issued under this section may not accrue interest before its delivery.
    (f) A bond issued under this section must be payable to bearer and be of the general form usual in municipal bonds.
    (g) Before offering bonds authorized by this section for sale, the board must give three (3) weeks notice of the date fixed for the sale of the bonds. The notice must include a description of the bonds and invite bids for the bonds. The notice shall be given by three (3) advertisements, one (1) time each week for the three (3) consecutive weeks immediately preceding the day of sale in a newspaper published and with a general circulation in Indianapolis. Notice may also be required in other advertisements if ordered by the board.
    (h) The board shall sell the bonds to the highest and best bidder and has the right to reject any bid. The proceeds arising from the sale shall be used only for the purpose declared in the resolution of the board.
    Sec. 7. (a) The board may, if the board's general fund is exhausted or in the board's judgment is in danger of exhaustion, make temporary loans for the use of the board's general fund to be paid out of the proceeds of taxes levied by the school city for the board's general fund. The amount borrowed for the general fund must be paid into the board's general fund and may be used for any purpose for which the board's general fund lawfully may be used. A temporary loan must:
        (1) be evidenced by the promissory note or notes of the school city;
        (2) bear interest that is payable, according to the note or notes, periodically or at the maturity of the note or notes and at not more than seven percent (7%) per annum; and
        (3) mature at a time or times determined by the board, but not later than one (1) year after the date of the note or notes.
Loans made in a calendar year may not be for a sum greater than the amount estimated by the board as proceeds to be received by the board from the levy of taxes made by the school city for the board's general fund. Successive loans may be made to aid the general fund in a calendar year, but the total amount of successive loans outstanding at any time may not exceed the estimated proceeds of taxes levied for the board's general fund.


    (b) A loan under this section may not be made until notice asking for bids is given by newspaper publication. Notice must be made one (1) time in a newspaper published in the school city at least seven (7) days before the time the bids for the loans will be opened. A bidder shall name the amount of interest the bidder agrees to accept, not exceeding seven percent (7%) per annum. The loan shall be made to the bidder or bidders bidding the lowest rate of interest. The note, notes, or warrants may not be delivered until the full price of the face of the loan is paid to the treasurer of the school city, and interest does not accrue on the loan until delivery.
    Sec. 8. (a) A school city wishing to make a temporary loan for its general fund under this section may temporarily borrow money, without payment of interest, from the school city's treasury if the school city has in its treasury money derived from the sale of bonds that cannot or will not in the due course of the business of the school city be expended in the near future. A school city shall, by its board, take the following steps required by law to obtain a temporary loan under this section:
        (1) Present to the department of local government finance and the state board of accounts:
            (A) a copy of the corporate action of the school city concerning the school city's desire to make a temporary loan;
            (B) a petition showing the particular need for a temporary loan;
            (C) the amount and the date or dates when the general fund will need the temporary loan or the installments of the loan;
            (D) the date on which the loan and each installment of the loan will be needed;
            (E) the estimated amounts from taxes to come into the general fund;
            (F) the dates when it is expected the proceeds of taxes will be received by the school city for the general fund;
            (G) the amount of money the school city has in each fund derived from the proceeds of the sale of bonds that cannot or will not be expended in the near future; and
            (H) a showing of when, to what extent, and why money in the bond fund will not be expended in the near future.
        (2) Request the department of local government finance and the state board of accounts to authorize a temporary loan from the bond fund for the general fund.
    (b) If:
        (1) the department of local government finance finds and orders that there is need for a temporary loan and that it should be made;
        (2) the state board of accounts finds that the money proposed to be borrowed will not be needed during the period of the temporary loan by the fund from which it is to be borrowed; and
        (3) the state board of accounts and the department of local government finance approve the loan;
the business manager and treasurer of the school city shall, upon the approval of the state board of accounts and the department of local government finance, take all steps necessary to transfer the amount of the loans as a temporary loan from the fund to be borrowed from to the general fund of the school city. The loan is a debt of the school city chargeable against its constitutional debt limit.
    (c) The state board of accounts and the department of local government finance:
        (1) may fix the total amount that may be borrowed on a petition; and
        (2) shall determine:
            (A) at what time or times;
            (B) in what installments; and
            (C) for what periods;
        the money may be borrowed.
The treasurer and business manager of the school city, as money is collected from taxes levied in behalf of the general fund, shall credit the amount of money collected from taxes levied to the loan until the amount borrowed is fully repaid to the lending fund. The treasurer and business manager of the school city shall at the end of each calendar month report to the board the amounts applied from taxes to the payment of the loan.
    (d) The school city shall, as often as once a month, report to both the state board of accounts and the department of local government finance:
        (1) the amount of money borrowed and unpaid;
        (2) any anticipated similar borrowings for the current month;
        (3) the amount left in the general fund; and
        (4) the anticipated drafts on the bond fund for the purposes for which the fund was created.
    (e) The state board of accounts and the department of local

government finance, or either acting independently:
        (1) if it appears that the fund from which the loan was made requires the repayment of all or part of the loan before maturity; or
        (2) if the general fund no longer requires all or some part of the proceeds of the loan;
may require the school city to repay all or part of the loan. A school city shall, if necessary to repay all or part of a loan under this subsection, exercise its power to obtain a temporary loan from others under section 7 of this chapter to raise the money needed to repay the bond fund the amount ordered repaid.
    Sec. 9. A school city shall provide for the payment and retirement of debt obligations of the school city in the manner provided under IC 21-2-21-5, IC 21-2-21-10, and IC 21-2-4.
    Sec. 10. (a) The board may not create debt in excess of twenty-five thousand dollars ($25,000) in total, except:
        (1) as otherwise provided in this chapter; or
        (2) for debts that exist on or after March 9, 1931, that are authorized by the general school laws of Indiana, including debt incurred under IC 21-4-20, IC 20-26-1, IC 20-26-2, IC 20-26-3, IC 20-26-4, IC 20-26-5, IC 20-26-6, and IC 20-26-7.
    (b) Notwithstanding subsection (a), the board is liable for the board's lawful contracts with persons rendering services and furnishing materials incident to the ordinary current operations of the board's schools if the contracts have been entered into as provided in this chapter and in accordance with law. The obligations of the board to persons rendering services or furnishing materials is not limited or prohibited by this chapter.
    (c) If the compensation to be paid for the purchase of real estate or an interest in real estate required by the board for the board's purposes cannot be agreed upon or determined by the:
        (1) board; and
        (2) persons owning or having an interest in the land desired;
the board may, by eminent domain, determine the compensation and acquire the title to the real estate or interest in the real estate by court action under IC 32-24.
    (d) The right and power of the board to own and acquire real estate and interests in real estate in any manner and for any purpose specified in this chapter or by the general school laws of Indiana is not limited to real estate situated within the corporate boundaries of the civil city in which a school city is located.

However, the right and power to acquire and own real estate extends to any parcel or trace of real estate the whole of which is situated:
        (1) within one-half (1/2) mile of the nearest point on the corporate boundary of the civil city;
        (2) within a platted territory:
            (A) outside but contiguous to; or
            (B) contiguous to another platted territory that is contiguous to;
        the corporate boundary of the civil city; or
        (3) within one-half (1/2) mile of the nearest point of the boundary of a platted territory:
            (A) outside but contiguous to; or
            (B) contiguous to another platted territory that is contiguous to;
        the corporate boundary of the civil city.
"Platted territory", as used in this subsection, means a territory or land area for which a plat has been recorded in the manner provided by Indiana statutes pertaining to the recording of plats of land.
    (e) Before acquiring any real estate or interest in real estate outside the corporate limits of the civil city, the board must, by resolution entered into the record of the board's corporate minutes, find and determine that, in the judgment of the board, the real estate or interest in real estate to be acquired will be needed for the future purposes of the board. This chapter does not limit the right of any board to accept, own, and hold real estate or an interest in real estate, wherever situated, that is acquired by the board by gift or devise.
    Sec. 11. The board has the powers and duties conferred upon governing bodies by existing statutes and by the general school laws, including IC 20-26-1, IC 20-26-2, IC 20-26-3, IC 20-26-4, IC 20-26-5, IC 20-26-6, and IC 20-26-7, to the extent the powers and duties are consistent with this chapter.
    Sec. 12. (a) The board may:
        (1) except as provided in subsection (b), acquire by purchase, devise, gift, lease, or condemnation grounds needed by the school city;
        (2) construct or lease buildings for school, school administration, or school office purposes;
        (3) employ and pay all employees needed in any branch of the work committed to the board;


        (4) disburse, according to law, all money of the school city for lawful school city purposes;
        (5) have and exercise in the school city full and exclusive:
            (A) authority concerning the conduct and management of all common schools, including elementary schools and high schools; and
            (B) power to establish and enforce all regulations for the:
                (i) grading of; and
                (ii) courses of;
            instruction in all schools and for the government and discipline of the schools;
        (6) divide the city into districts for school attendance purposes;
        (7) maintain special day or night schools to which the board may admit adults and children at least fifteen (15) years of age; and
        (8) maintain playgrounds and vacation schools.
    (b) The board may not acquire the following real property:
        Lots 693-719, inclusive, and 7 1/2 feet west of and adjacent to such lots, in Norcliffe Addition, an addition to the city of Indianapolis, as per plat thereof, recorded in plat book 18 at pages 165 and 166, in the office of the recorder of Marion County, Indiana.
    Sec. 13. The expense of operating special schools under section 12(a)(7) of this chapter and playgrounds and vacation schools under section 12(a)(8) of this chapter must be paid out of the board's general fund. The board may make and impose fees that the board considers reasonable for:
        (1) enrollment of any high school graduate in any class offered in a special school; and
        (2) enrollment by any person at least seventeen (17) years of age in any special school class that does not provide credit toward graduation or progression in the regularly maintained common schools in the school city.
The receipts from fees under this section become a part of the board's general fund.
    Sec. 14. (a) A school city may:
        (1) sell real estate;
        (2) transfer personal property; and
        (3) execute deeds of conveyance and instruments of transfer with or without covenants of warranty;
if, in the opinion of the board, the real estate or personal property

cannot be advantageously used for school or library purposes and can be sold for its fair cash value.
    (b) A determination by the board that real estate or personal property cannot be advantageously used under subsection (a) must be entered into the record of the minutes of the school city's board.
    Sec. 15. (a) The board may, subject to the board's rules, authorize a member of the board or an officer or individual employed by the board to be absent from the school city in the interest of the school city without loss of compensation.
    (b) The board may refund to an individual described in subsection (a) necessary expenses incurred during the individual's absence. The amount refunded under this subsection must be paid from the board's general fund.
    Sec. 16. (a) The board may establish and conduct a system of industrial or manual training and education in connection with and as part of the board's common school system.
    (b) Industrial or manual training or education may include:
        (1) the principal use of tools and mechanical implements; and
        (2) the elementary principles of mechanical construction, mechanical drawing, and printing.
The board shall employ competent instructors in each of the various subjects.
    (c) The board shall establish rules and regulations for the admission of students to the industrial and manual training education system. The rules and regulations must, in the judgment of the board, produce the best results and provide instruction to the largest practicable number of students. The instruction in industrial and manual training education may be given in space provided in school buildings or in separate buildings if, in the judgment of the board, it is most advantageous.
    Sec. 17. (a) If a school city acquires title to or possession of real estate, buildings, and personal property in the school city by gift or donation, and the real estate, building, or personal property was used as an industrial or trade school for the education of youths in the trades of:
        (1) printing;
        (2) lithography;
        (3) machine making;
        (4) molding;
        (5) typesetting;
        (6) bricklaying;
        (7) tile setting;


        (8) pattern making;
        (9) pharmacy; or
        (10) other trades or occupations;
the board may, by the use of the board's school funds, maintain and operate the industrial or trade school or schools.
    (b) If real estate, a building, or personal property is acquired by the school city under subsection (a), the board shall:
        (1) perform any conditions incident to the school city's acquisition of the property;
        (2) maintain and operate the trade school and real estate, building, or personal property;
        (3) employ competent instructors in the various subjects to be taught;
        (4) purchase all necessary tools, implements, supplies, and apparatus; and
        (5) establish general rules and requirements for:
            (A) admission of pupils to the school or schools;
            (B) the courses of instruction; and
            (C) the conduct of the trade or industrial schools;
        that, in the board's judgment, will produce the best results and give instruction to the largest practicable number of students.
The school city may also use the real estate, building, or personal property acquired under subsection (a) for other school purposes, but not for any purpose that will materially interfere with the conduct of the trade or industrial schools.
    (c) The transfer tuition charge for each student who:
        (1) is transferred to the school city from another school corporation in Indiana; and
        (2) receives trade or industrial instruction in a trade or industrial school located on property acquired under subsection (a);
must be the actual per capita cost of operating the school the student attends. However, the costs of permanent improvements or additions, the salaries of the superintendents, or the costs of apparatus or repairing broken or damaged apparatus may not be used in computing the actual per capita cost.
    (d) If the school city admits a student to a trade school acquired by means described in this section and the student is not, by law, entitled to school privileges, the tuition charge for the student may not be greater than the per capita cost of operating the school the student attends. The cost of permanent improvements and

additions may not be included in computing the cost under this subsection.
    (e) A school city may admit to the school city's vocational, trade, or industrial schools nonresidents of Indiana. A nonresident student must pay reasonable laboratory and shop fees and a tuition fee of not more than the per student cost to the school city conducting the vocational, trade, or industrial schools. A return on capital invested in buildings, grounds, or equipment may not be included in computing the per student cost under this subsection.
    Sec. 18. (a) A school city may accept property in trust to be used for common school or vocational, trade, or industrial school purposes. The school city, whether made trustee by appointment of a court or by the founder of the trust, may carry out the terms of the trust in conducting common schools or vocational, trade, or industrial schools.
    (b) If a school city by:
        (1) resolution of; or
        (2) other formal corporate action of;
the board accepts real estate or other property in trust under subsection (a), the school city shall perform all requirements made conditions of the trust performable by the trustee.
    Sec. 19. (a) If the board determines it will promote the health of school children and advance the educational work of the schools, the board may provide for the serving of lunches to the students attending designated schools.
    (b) The board may:
        (1) establish kitchens and lunch rooms;
        (2) provide equipment suitable for kitchens and lunch rooms;
        (3) make other necessary provision for furnishing and serving lunches; and
        (4) employ a director and other necessary assistants or employees;
to provide lunches under subsection (a).
    (c) The board shall pay the expenses arising under subsection (b) out of the board's general fund. The expense of operating a lunch department shall, so far as practicable, be paid from charges paid by the students for the lunches. However, the board may, in the board's discretion, furnish lunches without cost to a student who is needy and unable to pay for the student's lunch.
    Sec. 20. The general school laws of Indiana and all laws and parts of laws applicable to the general system of common schools in school cities, so far as not inconsistent with this chapter and

other provisions of this article, and unless made inapplicable by this article, are in full force and effect in a school city to which this chapter applies.
    Sec. 21. This chapter applies to the school city to the extent the chapter is not in conflict with:
        (1) IC 20-23-4 and IC 20-23-16; and
        (2) the school reorganization plan applicable to the school city or the school city's successor corporation under the terms of IC 20-23-4 and IC 20-23-16.
However, IC 20-25-3-4 prevails over any conflicting provision of IC 20-23-4 and IC 20-23-16 and over the provisions of any school reorganization plan.
    Chapter 5. Real Property Annexations and Transfers; Remonstrances
    Sec. 1. As used in this chapter, "acquiring school corporation" means the school corporation that acquires territory as a result of annexation.
    Sec. 2. As used in this chapter, "annex", "annexing", "annexation", and "school annexation" mean an action in which the boundaries of a school corporation are changed so that additional territory, constituting all or a part of one (1) or more other school corporations, is transferred to the acquiring school corporation.
    Sec. 3. As used in this chapter, "annexed territory" means the territory acquired by an acquiring school corporation as a result of annexation from a losing school corporation.
    Sec. 4. As used in this chapter, "civil annexation" means an action in which the civil boundaries of a civil city are extended.
    Sec. 5. As used in this chapter, "civil city" means a civil city or a civil town, the area of which, or the major part of the area of which, is under the jurisdiction of a school city.
    Sec. 6. As used in this chapter, "losing school corporation" means a school corporation that loses territory to an acquiring school corporation by annexation.
    Sec. 7. As used in this chapter, "resolution" of:
        (1) a school township means a resolution adopted by the trustee and a majority of the township board; and
        (2) any other school corporation means a resolution duly adopted by the school corporation's governing body.
    Sec. 8. As used in this chapter, "school city" means a school corporation that at any time:
        (1) is a school city;


        (2) is a school town;
        (3) has succeeded to the jurisdiction of all a school city or a school town; or
        (4) has succeeded to the jurisdiction of a major part in area of a school city or school town.
    Sec. 9. As used in this chapter, "school corporation" means a public school corporation of the state located in whole or in part in a county containing a consolidated city.
    Sec. 10. Subject to the limitations and procedure set out in this chapter, any:
        (1) school corporation may annex territory from any other school corporation by resolutions of the acquiring and losing school corporations as provided in section 11 of this chapter; and
        (2) school city may annex territory from any other school corporation by a single resolution of the school city as provided in section 12 of this chapter.
    Sec. 11. (a) An annexation may be effected if an acquiring school corporation and a losing school corporation each adopts a substantially identical annexation resolution that contains the following items:
        (1) A description of the annexed territory. The description must, as near as reasonably possible, be by streets and other boundaries known by common names. The description does not need to include a legal description unless a legal description is necessary to identify the annexed territory. A notice is not defective if there is a good faith compliance with this section and if the area designated may be ascertained with reasonable certainty by a person skilled in the area of real estate description.
        (2) The time the annexation takes place. The time the annexation takes place may vary with respect to the different parts of the annexed territory. If the entire annexed territory is contiguous to the acquiring school corporation, the annexed territory may be annexed so that some parts may not be contiguous to the annexed territory for temporary periods.
        (3) The terms and conditions facilitating education of students in the annexed territory, losing school corporation, or acquiring school corporation. The terms may include, but are not limited to, the continued attendance by students in the annexed territory at schools in the losing school corporation for specified periods after annexation on a transfer basis. If a

student in an annexed territory attends a school in a losing school corporation under this subdivision, transfer tuition for the student must be paid by the acquiring school corporation to the losing school corporation in the manner and at the rates provided by the statutes governing the computation and payment of transfer tuition costs.
        (4) The:
            (A) disposition of assets and liabilities of the losing school corporation to the acquiring school corporation;
            (B) allocation between the acquiring school corporation and losing school corporation of subsequently collected school taxes levied on property in the annexed territory; and
            (C) amount, if any, to be paid by the acquiring school corporation to the losing school corporation on account of property received from the losing school corporation.
        The disposition, allocation, and amount must be equitable.
    (b) After the adoption of the resolutions under subsection (a), notice shall be given by publication in both the acquiring school corporation and the losing school corporation. The notice must include the text of the resolution, a statement that the resolution has been adopted, and a statement that a right of remonstrance exists as provided in this chapter. It is not necessary to set out the remonstrance provisions of this chapter in the notice. A general reference to a right of remonstrance with a reference to this chapter is sufficient to satisfy the requirements of this subsection. The annexation must take effect not later than thirty (30) days after the publication of the notice or at the time provided in the resolution, whichever is later. However, the annexation is not required to take effect within the period required by this subsection if a remonstrance, based on a ground other than that set out in section 14(a)(5) of this chapter, is filed in the circuit or superior court of the county in which the annexed territory or any part of the annexed territory is located. The remonstrance must be filed by registered voters residing in the losing school corporation at least equal in number to the greater of:
        (1) ten percent (10%) of the number of registered voters residing in the losing school corporation; or
        (2) fifty-one percent (51%) of the number of registered voters residing in the annexed territory.
    Sec. 12. (a) Notwithstanding section 11 of this chapter, a school city may effect an annexation as follows:


        (1) The acquiring school corporation must adopt an annexation resolution of the type provided in section 11 of this chapter. Unless the losing corporation consents, the resolution may not provide a time for annexation before July 1 following the May 1 next succeeding the last publication of the notice of annexation.
        (2) The acquiring school corporation, after adopting a resolution under subdivision (1), shall give notice of the type provided in section 11 of this chapter by publication in the acquiring school corporation and in the losing school corporation. The acquiring school corporation shall also give notice to the losing school corporation before the last publication of notice of the type provided in section 11 of this chapter. The annexation must take effect thirty (30) days after the last publication in the losing school corporation or at the time provided in the resolution, whichever is later. However, the annexation is not required to take effect within the period required by this subdivision if a remonstrance, based on a ground other than that set out in section 14(a)(5) of this chapter, is filed in the circuit or superior court of the county in which the annexed territory or a part of the annexed territory is located. The remonstrance must be filed by:
            (A) the losing school corporation;
            (B) not less than a majority of the owners of land in the annexed territory; or
            (C) the owners of seventy-five percent (75%) or more in assessed valuation of the real estate in the annexed territory.
    (b) For purposes of determining ownership under subsection (a)(2)(B) and (a)(2)(C), the following rules apply:
        (1) Only the record title holder or holders of a single piece of property are considered an owner.
        (2) If record title of a single piece of property is in more than one (1) individual, all the individuals constitute only one (1) owner, and the remonstrance of any one (1) of the individuals constitutes the remonstrance of all the individuals, whether or not the other individuals authorized the filing of the remonstrance.
    Sec. 13. (a) The notice by publication required by sections 11 and 12 of this chapter shall be made two (2) times a week apart in two (2) daily newspapers of general circulation in the acquiring school corporation and the losing school corporation. The two (2)

daily newspapers must be published in the English language. If there is only one (1) daily newspaper or if there are not any daily newspapers in either school corporation, a weekly newspaper may be used to provide notice. If there is only one (1) daily or weekly newspaper, publication in that newspaper is sufficient. If a newspaper is of general circulation in both school corporations, the publication of notice in the newspaper qualifies as one (1) of the required publications in each of the school corporations. Publication may be made jointly by the losing school corporation and the acquiring school corporation. The remonstrance period runs from the second publication.
    (b) If notice is required to be given by an acquiring school corporation to a losing school corporation, it may be made by registered or certified United States mail, return receipt requested, addressed to the:
        (1) governing body of the losing school corporation at the governing body's established business office;
        (2) township trustee in the case of a school township; or
        (3) superintendent of schools or any officer of the governing body of any other school corporation.
    Sec. 14. (a) A remonstrance under section 11 or 12 of this chapter must be in substantially the following form:
    The undersigned hereby remonstrate against the annexation of the following described territory situated in ________ County, Indiana, whereby it would be transferred from ___________ (the losing corporation) to ____________ (the acquiring corporation):
    (Description of the annexed territory sufficient to identify it.)
The remonstrance may be filed in any number of counterparts. Each counterpart must have attached to it the affidavit of the individual circulating the counterpart that affirms that each signature appearing on the counterpart was affixed in the presence of the individual circulating the counterpart and that each signature is the true and lawful signature of the individual who made it. The individual who makes the affidavit is not required to be one (1) of the individuals who signs the counterpart to which the affidavit is attached. The remonstrance must be accompanied by a complaint filed by one (1) or more of the remonstrators. The individual or individuals who file the complaint must be treated as a representative of the entire class of remonstrators and must sign the complaint individually or have their respective attorneys sign it. The complaint must state the reasons for the remonstrance. The reasons for the remonstrance are limited to the following:


        (1) There is a procedural defect in the manner in which the annexation is carried out that is jurisdictional.
        (2) The annexed territory does not form a compact area abutting the acquiring school corporation.
        (3) The losing school corporation is left with no high school facilities, or its enrollment after annexation will be less than one thousand (1,000) students. This subdivision does not provide a basis for a remonstrance if the annexation includes all of the territory of the losing school corporation.
        (4) The benefits to be derived from the annexation are outweighed by the detriments after consideration of the respective benefits and detriments to the schools, the students residing in the acquiring school corporation, the students residing in the losing school corporation, and the students residing in the annexed territory.
        (5) The disposition of assets and liabilities of the losing corporation, the allocation of school tax receipts between the two (2) school corporations, and the amount to be paid by the acquiring school corporation as set out in the annexation resolution are inequitable.
Except for subdivision (1), each allegation enumerated under this subsection may be made in the statutory language.
    (b) The plaintiff in a remonstrance suit is the individual whose name appears on the complaint and may be the losing school corporation in a remonstrance under section 12 of this chapter. The defendants in a remonstrance under section 11 of this chapter are the acquiring school corporation and the losing school corporation. The defendant in a remonstrance under section 12 of this chapter is the acquiring school corporation. Service of process shall be made on each defendant in the manner required in other civil actions.
    (c) To determine if a petition is timely filed, the time of filing is the time of filing with the clerk of the circuit court without regard to the time of issuance of the summons. If the thirtieth day falls on Sunday, a holiday, or any other day when the clerk's office is not open, the time for filing must be extended to the next day when the clerk's office is open.
    (d) The issues in a remonstrance suit are made up by the allegations in the complaint that are denied by each defendant. A responsive pleading does not need to be filed. A defendant may file a motion to dismiss the suit on the ground that the:
        (1) requisite number of qualified remonstrators have not

signed the petition;
        (2) remonstrance was not timely filed; or
        (3) complaint does not state a cause of action.
A responsive pleading to a motion to dismiss does not need to be filed. With respect to a motion under subdivisions (1) and (2), the allegations are considered denied by the remonstrators. In order to determine whether there are the requisite number of qualified remonstrators, an individual is not entitled to withdraw the individual's name after a remonstrance is filed, and an individual is not entitled to add the individual's name to the remonstrance after the remonstrance is filed. An individual may, however, at a remonstrance trial, in support or derogation of the substantive matters in the complaint, introduce into evidence a verified statement that the individual wishes to add or withdraw the individual's name from the remonstrance. The court may hear all or part of the matters raised by the motion to dismiss separately, or the court may consolidate all or part of the matters in the motion to dismiss with matters relating to the substance of the case for trial. A complaint may not be dismissed for failure to state a cause of action if a fair reading of the complaint makes out one (1) of the grounds for remonstrance and suit provided in subsection (a). An amendment of the complaint may be permitted in the discretion of the court if the amendment does not state a new ground of remonstrance.
    (e) A remonstrance trial must be conducted in the same manner as other civil cases by the court without the intervention of a jury on the issues raised by a complaint or a motion to dismiss, or both. A change of venue from a judge is permitted, but a change of venue from the county is not permitted. The court shall expedite the hearing of the case. A court's judgment, except with respect to a matter raised under subsection (a)(5), must be that the:
        (1) annexation will take place;
        (2) annexation will not take place; or
        (3) remonstrance is dismissed.
    (f) If the court finds that the remonstrators have proved a reason for the remonstrance described in subsection (a)(1) through (a)(4), the court's judgment shall be that the annexation will not take place. If the remonstrators fail to prove a reason for the remonstrance described in subsection (a)(1) through (a)(4), the court's judgment shall be that the annexation will take place. If the remonstrators raise an issue under subsection (a)(5) in support of a remonstrance, the court's judgment may be either that the

disposition, allocation, and amount set out in the annexing resolution are equitable or inequitable. If the court finds that the disposition, allocation, and amount set out in the annexing resolution are inequitable, the court shall provide for an equitable disposition, allocation, and amount. Costs will follow judgment. Appeals may be taken from any judgment of the court in the same manner as appeals are taken in other civil cases.
    Sec. 15. With respect to whether the disposition of the assets and liabilities of the losing school corporation is equitable, the allocation of school tax receipts is equitable, and the amount to be paid by the acquiring school corporation is equitable, a court must be satisfied that the annexing resolution conforms substantially to the following standards:
        (1) Except for current obligations or temporary borrowing, the acquiring school corporation shall assume a part of all installments of principal and interest on the indebtedness of the losing school corporation that is due after the end of the last calendar year in which the losing school corporation is entitled to receive current tax receipts from property tax levies on the property in the annexed territory. The part assumed by the acquiring school corporation consists of the following:
            (A) All installments relating to any indebtedness incurred in connection with the acquisition or construction of a building located in the annexed territory.
            (B) A proportion of all installments relating to any other indebtedness that is in the same proportion as the valuation of the real property in the annexed territory bears to the valuation of all the real property in the losing school corporation. Valuation under this clause is based upon the assessment for general taxation immediately before annexation.
        (2) The acquiring school corporation shall make the payments and assume the obligations provided for a school corporation acquiring:
            (A) territory;
            (B) a building or buildings; or
            (C) both territory and a building or buildings;
        under IC 21-5-10.
        (3) Unless the losing school corporation consents to another allocation, the part of the special school and tuition fund money collected by the losing school corporation shall not be

allocated in a greater amount to the acquiring school corporation than would be awarded if the:
            (A) two (2) corporations were respectively the original school corporation and the annexing school corporation under IC 20-23-16; and
            (B) amount to be paid to the losing corporation by the acquiring school corporation based on the acquisition by the acquiring school corporation of a building in the annexed territory may not be less than would be awarded if the two (2) school corporations were respectively the acquiring school corporation and original school corporation under IC 20-23-16.
        (4) If the annexed territory includes an entire losing school corporation, the acquiring school corporation shall:
            (A) acquire all the property and assets of the losing school corporation without making any payments for the losing school corporation; and
            (B) assume all of the liabilities and obligations of the losing school corporation.
    Sec. 16. (a) If a remonstrance is filed on any ground other than a ground set forth in section 14(a)(5) of this chapter, annexation does not become effective until final judgment in the remonstrance suit. A judgment is not considered final until the time for taking an appeal has expired or, if an appeal is taken within the permitted time, until a final judgment is issued in the appeal.
    (b) A judgment of a trial court dismissing a remonstrance is a final judgment, subject to subsection (a).
    (c) If a judgment is against annexation, no further annexation of the annexed territory may occur for two (2) years after the date of the filing of the remonstrance. However, a judgment against annexation does not prevent either the:
        (1) acquiring school corporation; or
        (2) acquiring school corporation and the losing school corporation;
from rescinding the annexation resolution. If an annexation resolution is rescinded under this subsection, the suit must be dismissed without prejudice. If an annexation suit is dismissed without prejudice under this subsection, the two (2) year prohibition does not apply unless a subsequent annexation resolution is adopted primarily for the purpose of harassment and not for another purpose, such as the correction of procedural irregularities or a substantial change in the annexed territory or

the annexation resolution.
    (d) If a remonstrance relates solely to a matter raised under section 14(a)(5) of this chapter, the annexation takes effect at the time provided under section 11 or 12 of this chapter.
    Sec. 17. Notwithstanding any other statute that provides that the boundaries of a school city or school town are coterminous or coextensive with the boundaries of a civil city or civil town, the boundaries of a school city may be changed after March 8, 1961, solely by annexation under this chapter if this chapter was in effect at the time the annexation became effective or finally effective.
    Sec. 18. (a) Except as provided in subsection (b), a law or a part of a law in conflict with this chapter is void.
    (b) This chapter may not be construed to invalidate IC 20-23-4, IC 20-23-16, or any other statute concerning the consolidation of two (2) or more school corporations to which this chapter is supplementary. However, IC 20-23-4 and IC 20-23-16 are void to the extent that IC 20-23-4 and IC 20-23-16 conflict with the subsequent provisions of this section.
    (c) An annexation sought under this chapter does not require the approval of a:
        (1) county committee;
        (2) state commission; or
        (3) committee created under or referred to in IC 20-23-4.
    (d) Acts 1961, c.186, s.9, with respect to an annexation that is finally effective before February 25, 1969, operates after March 8, 1961, before and after a final plan is put into effect by:
        (1) election;
        (2) petition;
        (3) another proceeding under IC 20-23-4 or IC 20-23-16; or
        (4) another statute concerning the consolidation of two (2) or more school corporations.
    Sec. 19. Acts 1961, c.186, s.9 is repealed regarding an annexation that is not effective or finally effective before February 25, 1969.
    Sec. 20. (a) This section applies to a school city described in IC 20-25-2-12.
    (b) All real estate belonging to a school city that:
        (1) consists of lots and buildings on the real property of the school city; and
        (2) has not been used for school purposes for at least five (5) years;
may be transferred to and placed under the jurisdiction of the board of park commissioners of the city in which the school city is

located and must be operated, managed, controlled, and maintained as a recreation center for the use and benefit of the city.
    Chapter 6. Determination of School City Conditions and Needs
    Sec. 1. The following school city conditions and needs are found to exist on January 1, 1995:
        (1) Education in the school city presents unique challenges.
        (2) Student achievement in the school city on statewide tests consistently has been significantly below:
            (A) the state average; and
            (B) achievement attained in school corporations adjacent to the school city.
        (3) The need for remediation of students in the school city consistently has been significantly higher than:
            (A) the state average; and
            (B) remediation rates in school corporations adjacent to the school city.
        (4) Graduation rates in the school city consistently have been significantly below:
            (A) the state average; and
            (B) graduation rates in school corporations adjacent to the school city.
        (5) Student attendance rates in the school city consistently have been below:
            (A) the state average; and
            (B) student attendance rates in school corporations adjacent to the school city.
        (6) There are individual schools in the school city whose students are achieving, but overall student achievement in the school city is unsatisfactory.
        (7) Improving education in the school city requires unique legislative intervention.
        (8) Educator driven school level control of efforts to improve student achievement in their schools and a program of performance awards in the school city will encourage the development and use of:
            (A) innovative teaching methods;
            (B) improved opportunities for teacher professional development;
            (C) programs achieving greater levels of parental involvement;
            (D) more efficient administrative efforts; and


            (E) improved student achievement.
        (9) Greater accountability among educators in their schools, including:
            (A) evaluations based on student achievement measures and administrative efficiency criteria; and
            (B) annual reports to the public regarding student achievement information and administrative performance measures;
        will encourage the development and use of creative and innovative educational methods and improve student achievement.
        (10) Providing a range of remediation opportunities to students in the school city who:
            (A) fail to meet state achievement standards; or
            (B) are determined to be at risk of academic failure by the board;
        will enhance the educational opportunities available to students and improve student performance.
        (11) Enhanced intervention for schools whose students fail to meet expected performance levels will improve the:
            (A) educational opportunities; and
            (B) educational achievement;
        in the school city.
        (12) Allowing students to attend neighborhood schools and the development and implementation of a plan by the board to increase student performance and achievement in the school city are necessary to:
            (A) achieve the legislative objectives referred to in this section;
            (B) meet the unique challenges to education in the school city; and
            (C) improve student achievement in the school city.
    Chapter 7. Neighborhood Schools
    Sec. 1. The school city shall offer a parental choice program that allows a parent the opportunity to choose the school in the school city that the parent's child will attend.
    Sec. 2. (a) The board shall establish appropriate criteria to:
        (1) set priorities for parental choices; and
        (2) assign students to schools.
    (b) Criteria established under this section must provide that if the parent of a student chooses to enroll the student in a neighborhood school, the student will be assigned to the

neighborhood school, subject only to building capacity limitations.
    Chapter 8. Parental Involvement in Schools
    Sec. 1. As used in this chapter, the term "student's parent" includes the foster parent of a student.
    Sec. 2. (a) Each school in the school city shall develop a written compact among:
        (1) the school;
        (2) the students;
        (3) the students' teachers; and
        (4) the students' parents.
    (b) A written compact must contain the expectations for:
        (1) the school;
        (2) the student;
        (3) the student's teachers; and
        (4) the student's parent.
    (c) Each educator at the school shall affirm and sign the compact.
    (d) Each student and the student's parent shall go to the school before the start of each school year to sign and affirm the compact.
    Sec. 3. Each school shall report to the county office of family and children the names of foster parents who have not completed a compact under this chapter.
    Chapter 9. Performance Measures for Student Achievement
    Sec. 1. IC 20-31-8 applies to the school city and its schools. The board shall use the student performance improvement levels established under IC 20-25-11 to:
        (1) assess;
        (2) report; and
        (3) improve;
the performance of schools, educators, and students in the school city.
    Sec. 2. The board shall use state achievement standards to identify students in need of summer remediation services.
    Sec. 3. The board shall use the student performance improvement levels established under IC 20-25-11 to:
        (1) implement the board's plan;
        (2) evaluate school performance;
        (3) publish annual reports; and
        (4) determine academic receivership under IC 20-25-15.
    Sec. 4. The board shall use student performance improvement levels to determine whether to place a school in academic receivership under IC 20-25-15.


    Sec. 5. Each school in the school city shall measure and record:
        (1) the students' achievement in reaching the school's student performance improvement levels established under IC 20-25-11;
        (2) student achievement information for the school described in IC 20-20-8-8 and IC 20-25-9-6; and
        (3) teacher and administrative performance information for the school described in IC 20-25-9-6;
which in each case must not be less rigorous than the student performance improvement levels and information developed and required under IC 20-31-8.
    Sec. 6. For all schools under this article, the report must include the following, in addition to the requirements of IC 20-20-8-8:
        (1) Student achievement information as follows:
            (A) For each elementary and middle school, grade advancement rates.
            (B) For each high school, the percentage of students who apply to, are accepted by, and attend a college, university, or other postsecondary educational institution after high school.
        (2) Administrative performance measures as follows:
            (A) School receipts and expenditures by source, compared with budget amounts.
            (B) Total school enrollment.
            (C) The school's general fund expenditures per student and total expenditures per student.
            (D) The amount and percentage of the school's general fund expenditures and the amount and percentage of total expenditures directly reaching the classroom as determined by a formula to be established by the board.
            (E) Teacher/pupil ratios totaled by class, grade, and school.
            (F) Administrator/pupil ratio for the school.
            (G) Teacher attendance rates totaled by class, grade, and school.
        (3) Achievement on the annual performance objectives identified under IC 20-25-11.
        (4) The performance objectives established under IC 20-25-11 for the upcoming school year.
        (5) State and school city averages for each of the measures set forth in subdivisions (1) through (2), if available.
    Chapter 10. Board Plan for Improvement of Student Achievement
    Sec. 1. (a) The board shall modify, develop, and implement a plan for the improvement of student achievement in the schools in the school city.
    (b) A plan modified, developed, and implemented under this chapter must be consistent with this article and with IC 20-31-1, IC 20-31-2, IC 20-31-5, IC 20-31-6, IC 20-31-7, IC 20-31-8, IC 20-31-9, and IC 20-31-10.
    Sec. 2. The plan modified, developed, and implemented under this chapter must do the following:
        (1) Provide for efforts to increase support of the schools by:
            (A) the parents of students; and
            (B) the neighborhood communities surrounding the schools.
        (2) Establish student performance improvement levels for students in each school in the school city that are not less rigorous than the student performance improvement levels developed under IC 20-31.
        (3) Provide opportunity and support for the educators in each school to develop a school plan, including:
            (A) traditional or innovative methods and approaches to improve student achievement; and
            (B) efficient and cost effective management efforts in the school;
        that are developed consistently with IC 20-25-12-1 and with the board's plan developed under this chapter.
        (4) Require annual reports identifying the progress of student achievement for each school as described in IC 20-20-8-8 and IC 20-25-9-6.
        (5) Provide for the effective evaluation of:
            (A) each school in the school city; and
            (B) the school's educators;
        including the consideration of student achievement in the school.
        (6) Provide a range of opportunity for remediation of students who:
            (A) fail to meet state achievement standards; or
            (B) are at risk of academic failure.
        (7) Require action to raise the level of performance of a school if the school's students fail to achieve student performance improvement levels established for the school under IC 20-25-11-1.
    Sec. 3. The board shall:
        (1) modify, develop, and publish the plan required under this chapter; and
        (2) implement the modified plan;
in compliance with the timelines of IC 20-31-1, IC 20-31-2, IC 20-31-5, IC 20-31-6, IC 20-31-7, IC 20-31-8, IC 20-31-9, and IC 20-31-10.
    Sec. 4. If the board revises the plan required under this chapter after the plan is published, the board shall publish the revisions.
    Sec. 5. (a) The board shall annually assess and evaluate educational programs offered by the school city to determine:
        (1) the relationship of the programs to improved student achievement; and
        (2) the educational value of the programs in relation to cost.
    (b) The board may obtain information from:
        (1) educators in the schools offering a program;
        (2) students participating in a program; and
        (3) the parents of students participating in a program;
in preparing an assessment and evaluation under this section. The assessment must include the performance of the school's students in achieving student performance improvement levels under IC 20-31-1, IC 20-31-2, IC 20-31-5, IC 20-31-6, IC 20-31-7, IC 20-31-8, IC 20-31-9, IC 20-31-10, and IC 20-25-11.
    Chapter 11. Annual Performance Objectives
    Sec. 1. The board shall establish annual student performance improvement levels for each school that are not less rigorous than the student performance improvement levels under IC 20-31-1, IC 20-31-2, IC 20-31-5, IC 20-31-6, IC 20-31-7, IC 20-31-8, IC 20-31-9, and IC 20-31-10, including the following:
        (1) For students:
            (A) improvement in results on assessment tests and assessment programs;
            (B) improvement in attendance rates; and
            (C) improvement in progress toward graduation.
        (2) For teachers:
            (A) improvement in student results on assessment tests and assessment programs;
            (B) improvement in the number and percentage of students achieving:
                (i) state achievement standards; and
                (ii) if applicable, performance levels set by the board;
            on assessment tests;
            (C) improvement in student progress toward graduation;
            (D) improvement in student attendance rates for the school year;
            (E) improvement in individual teacher attendance rates;
            (F) improvement in:
                (i) communication with parents; and
                (ii) parental involvement in classroom and extracurricular activities; and
            (G) other objectives developed by the board.
        (3) For the school and school administrators:
            (A) improvement in student results on assessment tests, totaled by class and grade;
            (B) improvement in the number and percentage of students achieving:
                (i) state achievement standards; and
                (ii) if applicable, performance levels set by the board;
            on assessment tests, totaled by class and grade;
            (C) improvement in:
                (i) student graduation rates; and
                (ii) progress toward graduation;
            (D) improvement in student attendance rates;
            (E) management of:
                (i) general fund expenditures; and
                (ii) total expenditures;
            per student;
            (F) improvement in teacher attendance rates; and
            (G) other objectives developed by the board.
    Chapter 12. School Plans for Improvement
    Sec. 1. (a) IC 20-31-1, IC 20-31-2, IC 20-31-5, IC 20-31-6, IC 20-31-7, IC 20-31-8, IC 20-31-9, and IC 20-31-10 apply to the school city. The composition of a local school improvement committee is determined under IC 20-31-1, IC 20-31-2, IC 20-31-5, IC 20-31-6, IC 20-31-7, IC 20-31-8, IC 20-31-9, and IC 20-31-10.
    (b) The plan developed and implemented by the board under IC 20-25-10 must contain general guidelines for decisions by the educators in each school to improve student achievement in the school.
    (c) The board's plan shall provide for the publication to other schools in the school city and to the general community those:
        (1) processes;
        (2) innovations; and
        (3) approaches;
that have led individual schools to significant improvement in

student achievement.
    Sec. 2. (a) Educators in each school are responsible for improving student achievement in the school and may develop the educators' own school plan to achieve improvement that:
        (1) conforms to the guidelines issued by the board; and
        (2) has a cost that does not exceed the amount allocated to the school under section 5 of this chapter.
    (b) Educators may use traditional or innovative techniques that the educators believe will:
        (1) best maintain a secure and supportive educational environment; and
        (2) improve student achievement.
    Sec. 3. Each school's plan must include the development and maintenance of efforts to increase parental involvement in educational activities.
    Sec. 4. School plans must promote:
        (1) increased options for; and
        (2) innovative and successful approaches to;
improving student achievement.
    Sec. 5. The approved general fund budget for each school for a school year must be, as nearly as is reasonable and practicable, proportionate to the total general fund budget for the school city in the same ratio as the school's estimated ADM compares to the school city's estimated ADM for that school year.
    Sec. 6. (a) Each school's educators may:
        (1) determine the educational resources, goods, and services that are necessary and appropriate for improving student performance in the school; and
        (2) obtain or purchase the educational resources, goods, and services.
    (b) Purchases and acquisitions under this section are subject to:
        (1) the general guidelines developed by the board; and
        (2) the school's budget.
    Sec. 7. Subject to the general guidelines developed by the board and after consulting with the school's teachers, each school's administrators may determine the:
        (1) sources of; and
        (2) part of;
the school's available budget allocated for noneducational goods and services.
    Sec. 8. (a) If, as a result of a school's efforts to incur less expense than was budgeted in a fiscal year, the school has excess general

fund money after the school's expenses for the fiscal year are paid in full, the school retains control of the excess.
    (b) The school shall use excess general fund money retained under this section during the following school year for:
        (1) professional development of the school's educators; and
        (2) other classroom instructional purposes;
under the general guidelines developed by the board.
    (c) The board may not consider a school's excess general fund money retained under this section when setting or approving the school's budget for subsequent years.
    Chapter 13. Staff Performance Evaluations
    Sec. 1. IC 20-28-11 does not apply to a school city.
    Sec. 2. Each school year, a school shall develop and implement a staff performance evaluation plan to evaluate the performance of the school's certified employees under guidelines established by the board.
    Sec. 3. A staff performance evaluation plan must do the following:
        (1) Provide for evaluation of the school's and the school's educators' performance based on the school's students' performance improvement level under IC 20-25-11, including the following:
            (A) Student achievement on assessment tests and assessment programs.
            (B) Graduation rates.
            (C) Scholastic aptitude test scores.
            (D) Other objective standards developed by the board for measuring student, teacher, and administrator performance improvement consistent with:
                (i) state academic standards; and
                (ii) student performance improvement levels developed under IC 20-25-11.
        (2) Provide for:
            (A) the continuing professional development; and
            (B) improvement of the performance;
        of the individuals evaluated.
        (3) Require periodic assessment of the effectiveness of the plan.
    Sec. 4. A staff performance evaluation plan may provide the basis for making employment decisions.
    Sec. 5. Development and implementation of a staff performance evaluation plan for each school is a condition for accreditation for

the school under IC 20-19-2-8(a)(5).
    Sec. 6. A staff performance evaluation plan must:
        (1) comply with guidelines established by; and
        (2) be approved by;
the board.
    Sec. 7. IC 20-28-6-4 and IC 20-28-6-5 apply to certificated employees in the school city. A teacher's students' performance improvement levels under the assessment tests and programs of IC 20-31-1, IC 20-31-2, IC 20-31-5, IC 20-31-6, IC 20-31-7, IC 20-31-8, IC 20-31-9, and IC 20-31-10 may be used as a factor, but not the only factor, to evaluate the performance of a teacher in the school city.
    Chapter 14. Summer Remediation
    Sec. 1. (a) The school city must provide summer remediation services to each student in a designated grade level who does not meet state achievement standards.
    (b) The school city may provide summer remediation services to students of any other grade level who are determined by the school city to be at risk of academic failure.
    Sec. 2. The board may:
        (1) request and receive competitive proposals from:
            (A) a school of the school city;
            (B) another public educational institution; or
            (C) a group of educators from the school city;
        to provide summer remediation services under guidelines and specified performance standards established by the board; and
        (2) contract with one (1) or more providers listed in subdivision (1) to provide summer remediation services to students in the school city.
    Sec. 3. The school city:
        (1) shall pay the cost of summer remediation services; and
        (2) may use all available funding from the state for the payment.
The purchase of remediation services is eligible for state reimbursement in the same manner as other state funding, including summer school funding.
    Sec. 4. (a) Summer remediation services provided by contractors under section 2 of this chapter shall be provided at no tuition cost to the student.
    (b) Upon the request of the parent of a student described in section 1 of this chapter, the school city shall provide the parent

with a summer remediation subsidy in an amount equal to fifty percent (50%) of the lowest per student cost of summer remediation services provided by a contractor under section 2 of this chapter.
    (c) A parent to whom a summer remediation subsidy is provided may use the subsidy to purchase summer remediation services from a provider located in Marion County. The parent may choose to use the remediation subsidy at an accredited public school. If the amount of tuition for the remediation services is greater than the amount of the remediation subsidy provided to the parent, the parent is responsible for the additional amount.
    (d) The allocated remediation subsidy is payable to a provider of remediation services upon the provider's enrollment of the student in the remediation program.
    (e) Payment of a remediation subsidy fulfills the obligation under this chapter of the school city to provide remediation services to a student.
    (f) If a student who has received a remediation subsidy does not complete a remediation program, the provider of remediation services shall refund the remediation subsidy on a pro rata basis to the school city.
    Chapter 15. Academic Receivership
    Sec. 1. In addition to the consequences of IC 20-31-9, the board shall place a school in the school city in academic receivership if the school fails for any two (2) consecutive school years to meet student performance improvement levels.
    Sec. 2. Before August 1 of a school year for which a school is placed in academic receivership, the superintendent and the board shall require the following:
        (1) Evaluation of each administrator at the school.
        (2) Evaluation of each teacher at the school.
        (3) Evaluation of the school's educational plan.
        (4) Consideration of:
            (A) personnel;
            (B) management;
            (C) plan; and
            (D) policy;
        changes for the school to improve student performance at the school.
        (5) Identification of significant;
            (A) management;
            (B) personnel;


            (C) plan; or
            (D) policy;
        changes that in the board's judgment must be implemented to improve the school's performance.
    Sec. 3. (a) If a school is placed in academic receivership, the superintendent and the board must take action to raise the school's level of performance.
    (b) In addition to the consequences of IC 20-31-9, the actions that the superintendent and the board may take to raise the performance of a school in academic receivership include the following:
        (1) Shifting resources of the school city to the school.
        (2) Changing or removing:
            (A) the school principal;
            (B) teachers;
            (C) administrators; or
            (D) other staff.
        (3) Establishing a new educational plan for the school.
        (4) Requiring the superintendent or another school city appointee to administer the school until the academic receivership status of the school is removed.
        (5) Contracting with a:
            (A) for-profit organization;
            (B) nonprofit organization; or
            (C) individual;
        to manage the school.
        (6) Closing the school.
        (7) Any other management, personnel, or policy changes that the superintendent and board expect in the following school year to:
            (A) raise the performance of the school; and
            (B) avoid continuing academic receivership status for the school.
    (c) If this chapter is inconsistent with any other law relating to:
        (1) education;
        (2) teachers; or
        (3) common schools;
this chapter governs.
    Chapter 16. Additional Powers to Modify Policies and Waive Requirements, Lease Property, and Transfer Funds
    Sec. 1. To provide the board with the necessary flexibility and resources to carry out this article, the following apply:
        (1) The board may:
            (A) eliminate or modify existing policies;
            (B) create new policies; and
            (C) alter policies;
        subject to this article and the plan developed under IC 20-25-10.
        (2) IC 20-29 applies to the school city, except for the provision of IC 20-29-6-7(a) that requires any items included in the 1972-1973 agreements between an employer school corporation and an employee organization to continue to be bargainable.
        (3) The board may waive the following statutes and rules for any school in the school city without administrative, regulatory, or legislative approval:
            (A) The following rules concerning curriculum and instructional time:
                511 IAC 6.1-3-4
                511 IAC 6.1-5-0.5
                511 IAC 6.1-5-1
                511 IAC 6.1-5-2.5
                511 IAC 6.1-5-3.5
                511 IAC 6.1-5-4.
            (B) 511 IAC 6.1-4-1 concerning student/teacher ratios.
            (C) The following statutes and rules concerning textbooks and rules adopted under the statutes:
                IC 20-20-5-1 through IC 20-20-5-4
                IC 20-20-5-23
                IC 20-26-12-24
                IC 20-26-12-26
                IC 20-26-12-28
                IC 20-26-12-1
                IC 20-26-12-2
                511 IAC 6.1-5-5.
            (D) 511 IAC 6.1-4-2 concerning school principals.
        (4) Notwithstanding any other law, a school city may do the following:
            (A) Lease school transportation equipment to others for nonschool use when the equipment is not in use for a school city purpose.
            (B) Establish a professional development and technology fund to be used for:
                (i) professional development; or
                (ii) technology, including video distance learning.
            (C) Transfer funds obtained from sources other than state or local government taxation to any account of the school corporation, including a professional development and technology fund established under clause (B).
        (5) Transfer funds obtained from property taxation to the general fund (established under IC 21-2-11) and the school transportation fund (established under IC 21-2-11.5), subject to the following:
            (A) The sum of the property tax rates for the general fund and the school transportation fund after a transfer occurs under this subdivision may not exceed the sum of the property tax rates for the general fund and the school transportation fund before a transfer occurs under this subdivision.
            (B) This subdivision does not allow a school corporation to transfer to any other fund money from the debt service fund established under IC 21-2-4.
    SECTION 10. IC 20-26 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE 26 TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]:
    ARTICLE 26. SCHOOL CORPORATIONS: GENERAL ADMINISTRATIVE PROVISIONS
    Chapter 1. Applicability
    Sec. 1. IC 20-26-1 through IC 20-26-5 and IC 20-26-7 apply to all school corporations.
    Chapter 2. Definitions
    Sec. 1. Notwithstanding IC 20-18-2, the definitions in this chapter apply in IC 20-26-1 through IC 20-26-5 and IC 20-26-7.
    Sec. 2. "Governing body" refers to the board of commissioners charged by law with the responsibility of administering the affairs of a school corporation, including a:
        (1) board of school commissioners;
        (2) metropolitan board of education;
        (3) board of school trustees; or
        (4) board of trustees.
    Sec. 3. "Member" means a member of a governing body.
    Sec. 4. "School corporation" means a local public school corporation established under Indiana law, including a:
        (1) school city;
        (2) school town;
        (3) metropolitan school district;
        (4) consolidated school corporation;
        (5) county school corporation;
        (6) community school corporation; and
        (7) united school corporation.
The term does not include a school township.
    Sec. 5. "School purposes" means the general purposes and powers specified in IC 20-26-5-1 and IC 20-26-5-4. However, the delineation of a specific power in IC 20-26-5-4 is not a limitation on the general powers and purposes set out in IC 20-26-5-1.
    Chapter 3. Home Rule
    Sec. 1. Notwithstanding any other law and subject to section 7 of this chapter, the policy of the state is to grant to each school corporation all the powers needed for the effective operation of the school corporation.
    Sec. 2. (a) The rule of law that any doubt as to the existence of a power of a school corporation must be resolved against the existence of the power is abrogated.
    (b) Any doubt as to the existence of a power of a school corporation must be resolved in favor of the existence of the power. This rule applies when a statute granting the power has been repealed.
    Sec. 3. (a) The rule of law that a school corporation has only:
        (1) powers expressly granted by statute;
        (2) powers necessarily or fairly implied in or incident to powers expressly granted through rules adopted by the state board under IC 4-22-2 or otherwise; and
        (3) powers indispensable to the declared purposes of the school corporation;
is abrogated.
    (b) A school corporation has:
        (1) all powers granted to the school corporation by statute or through rules adopted by the state board; and
        (2) all other powers necessary or desirable in the conduct of the school corporation's affairs, even if the power is not granted by statute or rule.
    (c) The powers that school corporations have under subsection (b)(1) are listed in various statutes. However, these statutes do not list the powers that school corporations have under subsection (b)(2). The omission of a power from a list does not imply that school corporations lack that power.
    Sec. 4. A school corporation may exercise any power the school corporation possesses to the extent that the power:
        (1) is not expressly denied by the Constitution of the State of Indiana, by statute, or by rule of the state board; and
        (2) is not expressly granted to another entity.
    Sec. 5. (a) If there is a constitutional or statutory provision requiring a specific manner for exercising a power, a school corporation that exercises the power shall exercise the power in the specified manner as a minimum requirement.
    (b) If there is not a constitutional or statutory provision requiring a specific manner for exercising a power, a school corporation that exercises the power shall:
        (1) adopt a written policy prescribing a specific manner for exercising the power; or
        (2) comply with a statutory provision permitting a specific manner for exercising the power.
    (c) A written policy under subsection (b)(1) must be adopted by the governing body of the school corporation.
    Sec. 6. A state agency and other agencies may review or regulate the exercise of powers by a school corporation only to the extent prescribed by statute.
    Sec. 7. A school corporation does not have any of the following powers:
        (1) Powers expressly prohibited of a unit under IC 36-1-3-8.
        (2) Power for eminent domain, unless specifically authorized by statute.
        (3) Power to prescribe a civil penalty or a fine.
        (4) Power to adopt ordinances.
        (5) Power to require the attendance of witnesses and the production of documents relative to matters being considered, unless specifically authorized by statute.
        (6) Power to exercise powers outside the boundaries of the school corporation, unless authorized by statute through a joint agreement or otherwise.
    Chapter 4. Organization and Operation of Governing Body
    Sec. 1. (a) As used in this section, "electronic funds transfer" means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, or computer or magnetic tape to order, instruct, or authorize a financial institution to debit or credit an account.
    (b) The governing body of each school corporation shall organize by electing:
        (1) a president;
        (2) a vice president; and
        (3) a secretary;
each of whom is a different member, not more than fifteen (15) days after the commencement date of the members' terms of office, as provided in section 4 of this chapter.
    (c) A governing body shall, at the time that officers are elected under subsection (b), appoint a treasurer of the governing body and of the school corporation who is a person, other than the superintendent of schools, who is not a member of the governing body. The treasurer may, with the approval of the governing body, appoint a deputy who must be a person, other than the superintendent of schools, who is not a member of the governing body and who has the same powers and duties as the treasurer, or lesser duties as provided by the governing body by rule.
    (d) The treasurer is the official custodian of all funds of the school corporation and is responsible for the proper safeguarding and accounting for the funds. The treasurer shall:
        (1) issue a receipt for money received by the treasurer;
        (2) deposit money described in subdivision (1) in accordance with the laws governing the deposit of public funds; and
        (3) issue all warrants in payment of expenses lawfully incurred on behalf of the school corporation. However, except as otherwise provided by law, warrants described in this subdivision must be issued only after proper allowance or approval by the governing body. The governing body may not require an allowance or approval for amounts lawfully due in payment of indebtedness or payments due the state, the United States government, or agencies and instrumentalities of the state or the United States government.
A verification, other than a properly itemized invoice, may not be required for any claim of one hundred dollars ($100) or less. A claim that exceeds one hundred dollars ($100) is sufficient as to form if the bill or statement for the claim has printed or stamped on the face of the bill or statement a verification of the bill or statement in language approved by the state board of accounts.
    (e) Notwithstanding subsection (d), a treasurer may transact school corporation financial business with a financial institution or a public retirement fund through the use of electronic funds transfer. The treasurer must provide adequate documentation to the governing body of transfers made under this subsection. This subsection applies only to agreements for joint investment of money under IC 5-13-9 and to payments to:
        (1) the Indiana state teachers' retirement fund; or
        (2) the public employees' retirement fund;
from participating employers.
    (f) A treasurer is not personally liable for an act or omission occurring in connection with the performance of the duties set forth in this section, unless the act or omission constitutes gross negligence or an intentional disregard of the treasurer's duties.
    (g) A governing body may establish the position of executive secretary to the governing body. The executive secretary:
        (1) must be an employee of the school corporation;
        (2) may not be a member of the governing body; and
        (3) must be appointed by the governing body upon the recommendation of the superintendent of the school corporation.
The governing body shall determine the duties of the executive secretary, which may include all or part of the duties of the secretary of the board.
    Sec. 2. A person elected or selected to be a member of a governing body shall take the following oath before taking office:
        "I solemnly swear (or affirm) that I will support the Constitution of the United States of America, the Constitution of the State of Indiana, and the laws of the United States and the State of Indiana. I will faithfully execute the duties of my office as a member of this governing body, so help me God."
However, the governing body may provide for additional provisions to the oath that the governing body considers appropriate for the office.
    Sec. 3. (a) Regular meetings must be held by each governing body at a time and place established by resolution of the board or may be incorporated in the rules provided in IC 20-26-5-4. A notice need not be given a member for holding or taking any action at a regular meeting.
    (b) If a meeting is held according to a procedure set forth by statute or rule and if publication of notice of the meeting is required, notice of the meeting is not required and need not be given a member for holding or taking any action at the meeting contemplated by the notice. The meeting must be held at the time and place specified in the published notice.
    (c) Special meetings of a governing body must be held on call by the governing body's president or by the superintendent of the school corporation. The call must be evidenced by a written notice specifying the date, time, and place of the meeting, delivered to

each member personally or sent by mail or telegram so that each member has at least seventy-two (72) hours notice of the special meeting. Special meetings must be held at the regular meeting place of the board.
    (d) All meetings of a governing body must be open to the public to the extent required by IC 5-14-1.5. The governing body shall comply with IC 5-14-1.5.
    (e) If notice of a meeting is required and each member of a governing body has waived notice of the meeting, as provided in this subsection, notice of the meeting is not necessary. Waiver of notice of a meeting by a member consists of the following:
        (1) The member's presence at the meeting.
        (2) The member's execution of a written notice waiving the date, time, and place of the meeting, executed either before or after the meeting. However, if notice is executed after the meeting, the waiver must also state in general terms the purpose of the meeting. If a waiver specifies that the waiver was executed before the meeting, third persons are entitled to rely on the statement.
    (f) At a meeting of the governing body, a majority of the members constitutes a quorum. Action may not be taken unless a quorum is present. Except where a larger vote is required by statute or rule with respect to any matter, a majority of the members present may adopt a resolution or take any action.
    (g) All meetings of the governing body for the conduct of business must be held within the school corporation, except as follows:
        (1) Meetings may be held at the administrative offices of the school corporation if the offices are outside the geographic limits of the school corporation but are within a county where all or a part of the school corporation is located.
        (2) Meetings may be held at a place where the statute or rule according to which a statutory meeting is held permits meeting outside the school corporation, as may occur when the meeting is held jointly with another governing body.
    Sec. 4. (a) This section does not apply to a school city of the first class or to a school corporation succeeding to all or the major part in area of a school city of the first class.
    (b) The commencement and termination of terms of members of a governing body are as follows:
        (1) Except as provided in subdivision (2), the governing body of each school corporation shall determine whether the term

of office for the governing body's members extends from January 1 to December 31 or from July 1 to June 30. A governing body that makes a change in the commencement date of the governing body's members' terms shall report the change to the state board before August 1 preceding the year in which the change takes place. An ex officio member of a governing body shall take office at the time the ex officio member takes the oath of the office by virtue of which the ex officio member is entitled to become an ex officio member.
        (2) In a county having a population of more than four hundred thousand (400,000), the terms of office for the members of a governing body, whether elected or appointed, commence on July 1 of the year in which the members are to take office under the plan, resolution, or law under which the school corporation is established, and terminate on the June 30 of the final year of the term for which the members are to serve under the plan, resolution, or law.
    (c) If a vacancy in the membership of a governing body occurs for any reason (including the failure of a sufficient number of petitions for candidates for governing body membership being filed for an election and whether the vacancy was of an elected or appointed member), the remaining members of the governing body shall by majority vote fill the vacancy by appointing a person from within the boundaries of the school corporation, with the residence and other qualifications provided for a regularly elected or appointed board member filling the membership, to serve for the term or the balance of the term. However, this subsection does not apply to a vacancy:
        (1) of a member who serves on a governing body in an ex officio capacity; or
        (2) a vacancy in an appointed board membership if a plan, resolution, or law under which the school corporation operates specifically provides for filling vacancies by the appointing authority.
    Sec. 5. For each school year commencing July 1, the treasurer of each governing body and the governing body's school corporation and a deputy treasurer, if so appointed, shall give a bond for the faithful performance of the treasurer's and deputy treasurer's duties written by an insurance company licensed to do business in Indiana, in an amount determined by the governing body. The treasurer shall be responsible under the treasurer's bond for the acts of a deputy treasurer appointed as provided in

section 1 of this chapter.
    Sec. 6. (a) The governing body of any school corporation may designate a committee of at least two (2) of the governing body's members, or a committee of not less than two (2) employees of the school corporation, to open and tabulate bids:
        (1) in connection with the purchase of supplies, material, or equipment;
        (2) for the construction or alteration of a building or facility; or
        (3) for any similar purpose.
    (b) Bids described in subsection (a):
        (1) may be opened by the committee at the time and place fixed by the advertisement for bids;
        (2) must be read aloud and tabulated publicly, to the extent required by law for governing bodies; and
        (3) must be available for inspection.
    (c) The bids described in subsection (a) must be reported to and the tabulation entered upon the records of the governing body at the governing body's next meeting following the bid opening.
    (d) A bid described in subsection (a) may not be accepted or rejected by the committee, but the bid must be accepted or rejected solely by the governing body in a board meeting open to the public as provided in section 3 of this chapter.
    Sec. 7. (a) Except as provided in IC 20-25-3-3, the governing body of a school corporation by resolution has the power to pay each member of the governing body a reasonable amount for service as a member, not to exceed:
        (1) two thousand dollars ($2,000) per year; and
        (2) a per diem not to exceed the rate approved for members of the board of school commissioners under IC 20-25-3-3(d).
    (b) If the members of the governing body are totally comprised of appointed members, the appointive authority under IC 20-23-4-28(e) shall approve the per diem rate allowable under subsection (a)(2) before the governing body may make the payments.
    (c) To make a valid approval under subsection (b), the appointive authority must approve the per diem rate with the same endorsement required under IC 20-23-4-28(f) to make the appointment of the member.
    Sec. 8. Notwithstanding any other law, the president and secretary of the governing body of a school corporation are entitled, on behalf of the school corporation, to sign any contract,

including employment contracts and contracts for goods and services. However, each contract must be approved by a majority of all members of the governing body. In the absence of either the president or secretary of the governing body, the vice president is entitled to sign the contracts with the officer who is present.
    Sec. 9. An individual who is at least twenty-one (21) years of age and is otherwise eligible to assume office as a member of a governing body may not be disqualified on the basis of age.
    Sec. 10. Property ownership is not a qualification for serving as a member of a governing body.
    Sec. 11. In addition to any other eligibility requirements for members of the governing body of a school corporation as set forth in law, an individual who is employed as a teacher or as a noncertificated employee (as defined in IC 20-29-2-11) of the school corporation may not be a member of the governing body of the school corporation.
    Chapter 5. General Powers and Duties
    Sec. 1. (a) A school corporation shall:
        (1) conduct an educational program for all children who reside within the school corporation in kindergarten and in grades 1 through 12; and
        (2) provide each preschool child with a disability with an appropriate special education as required under IC 20-35-4-9 only if the general assembly appropriates state funds for preschool special education.
    (b) A school corporation may:
        (1) conduct an educational program for adults and children at least fourteen (14) years of age who do not attend a program described in subsection (a);
        (2) provide instruction in vocational, industrial, or manual training;
        (3) provide libraries for the schools of the school corporation;
        (4) provide public libraries open and free for the use and benefit of the residents and taxpayers of the school corporation where permitted by law;
        (5) provide vacation school and recreational programs;
        (6) conduct other educational or other activities as are permitted or required to be performed by law by any school corporation; and
        (7) provide a school age child care program that operates during periods when school is in session for students who are enrolled in a half-day kindergarten program.


    (c) A school corporation shall develop a written policy that provides for:
        (1) the implementation of a school age child care program for children who attend kindergarten through grade 6 that, at a minimum, operates after the school day and may include periods before school is in session or periods when school is not otherwise in session (commonly referred to as a latch key program) and is offered by the school corporation; or
        (2) the availability of the school corporation's buildings or parts of the school corporation's buildings to conduct the type of program described in subdivision (1) by a nonprofit organization or a for-profit organization.
    (d) The written policy required under subsection (c) must address compliance with certain standards of reasonable care for children served by a child care program offered under subsection (c), including:
        (1) requiring the offering entity to acquire a particular amount of liability insurance; and
        (2) establishing maximum adult to child ratios governing the overall supervision of the children served.
If a school corporation implements a child care program as described in subsection (c)(1) or enters into a contract with an entity described in subsection (c)(2) to provide a child care program, the school corporation may not assess a fee for the use of the building, and the contract between the school corporation and the entity providing the program must be in writing. However, the school corporation may assess a fee to reimburse the school corporation for providing security, maintenance, utilities, school personnel, or other costs directly attributable to the use of the building for the program. In addition, if a school corporation offers a child care program as described in subsection (c)(1), the school corporation may assess a fee to cover costs attributable to implementing the program.
    (e) The powers under this section are purposes as well as powers.
    Sec. 2. (a) Notwithstanding section 1 of this chapter, except as provided in subsection (c), a school corporation shall do one (1) of the following:
        (1) Conduct a school age child care program (commonly referred to as a latch key program) for children who attend kindergarten through grade 6 that, at a minimum:
            (A) operates after the school day and may include periods

before school is in session or periods when school is not otherwise in session and is offered by the school corporation; and
            (B) is available to all children in the applicable grade levels within the school corporation.
        (2) Contract with a nonprofit or for-profit organization to:
            (A) conduct the type of program described in subdivision (1); and
            (B) use school buildings or parts of school buildings in conducting the program.
        A contract entered into under this subdivision must be in writing.
However, a school corporation is not required to conduct the school corporation's child care program or to contract for a child care program for kindergarten students at times when grades 1 through 6 are in session.
    (b) A school corporation shall develop a written policy that addresses compliance with certain standards of reasonable care for children served by a child care program required under subsection (a), including the following:
        (1) Requiring the offering entity to acquire a particular amount of liability insurance.
        (2) Establishing maximum adult to child ratios governing the overall supervision of the children served.
A school corporation may not assess a fee for the use of a building for a child care program required under subsection (a). However, the school corporation may assess a fee to reimburse the school corporation for providing security, maintenance, utilities, school personnel, or other costs directly attributable to the use of a building for a child care program. If a school corporation conducts a child care program under subsection (a)(1), the school corporation may assess a fee to cover costs attributable to implementing the program.
    (c) A school corporation shall receive a waiver from the state board of the requirement under subsection (a) if the school corporation believes that the school corporation would experience an undue hardship due to a low number of eligible children intending to use a child care program, regardless of whether the child care program is conducted by the school corporation or under a contractual agreement. To receive a waiver, the school corporation must include a detailed description of the school corporation's attempt to implement a child care program,

including the following:
        (1) A description of the steps taken to:
            (A) conduct a child care program described in subsection (a)(1); or
            (B) actively solicit nonprofit organizations or for-profit organizations to implement a child care program as provided in subsection (a)(2).
        (2) Evidence that a request in writing was made to each parent to contact the school corporation to indicate the parent's willingness to use a child care program and documentation of the results received from parents.
    Sec. 3. (a) This section applies to a school age child care program (commonly referred to as a latch key program) operated by a nonprofit or for-profit organization under section 1 or 2 of this chapter.
    (b) Before awarding a contract to operate a child care program described in subsection (a), a school corporation must comply with IC 5-22-9.
    (c) In a request for proposals prepared under subsection (b), a school corporation must require each responding organization to specify the fee schedule the organization proposes to charge parents for the use of the child care program.
    (d) An organization that operates a child care program described in subsection (a) must comply with the guidelines developed by the department and the school corporation for child care programs described in subsection (a).
    Sec. 4. In carrying out the school purposes of a school corporation, the governing body acting on the school corporation's behalf 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 average daily

membership (as defined in IC 21-3-1.6-1.1) 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 21-5-10, IC 21-5-11, or IC 21-5-12.
            (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 energy conservation measures through utility energy efficiency programs or under a guaranteed energy 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 delineated under the powers given 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 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 five (5) years of age through fourteen (14) 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.
        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 is 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 to the end 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.
        (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 refund to the employee or to the member the employee's or member's reasonable hotel and board bills 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 to 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 levy taxes, 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 21-2-21.
        (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;
            (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 government, the federal government, or from any other source.
        (17) To defend any 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 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, which rules, regulations, and procedures 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 21-2-19, and IC 21-2-21 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 20-26-1 through IC 20-26-5, IC 20-26-7, IC 21-2-19, and IC 21-2-21 by specific language or by reference to other law.
    Sec. 5. A governing body of a school corporation may establish a policy regarding the allocation of tickets to the school corporation's interscholastic athletic events or other school related programs and activities at no charge or at a reduced rate to groups or individuals designated by the governing body.
    Sec. 6. All powers delegated to the governing body of a school corporation under section 1 or 4 of this chapter are subject to all laws subjecting the school corporation to regulation by a state agency, including the state superintendent, state board of accounts, state police department, fire prevention and building safety commission, department of local government finance, water pollution control board, state school bus committee, state department of health, and any local governmental agency to which the state has been delegated a specific authority in matters other than educational matters and other than finance, including plan commissions, zoning boards, and boards concerned with health and safety.


    Sec. 7. Notwithstanding any other statute, the governing body of a school corporation may, by resolution, appoint:
        (1) the school corporation's superintendent of schools; or
        (2) a person residing within the school corporation's boundaries;
to serve on a public board, commission, or public body, including park boards, library boards, tax adjustment boards, or city or county plan commissions, if legislation requires or allows representation on the public board, commission, or body by a member of the governing body, the school corporation's superintendent, or a designated educator.
    Sec. 8. (a) The governing body of a school corporation may appropriate necessary funds to provide for membership of the school corporation in state and national associations of an educational nature that have as the associations' purpose the improvement of school governmental operations.
    (b) A school corporation may participate through designated representatives in the meetings and activities of the associations. The governing body of the school corporation may appropriate the necessary funds to defray the expenses of the representatives in connection with the meetings and activities.
    Sec. 9. (a) A school corporation may provide programs, classes, or services to a state educational institution.
    (b) A state educational institution may provide programs, classes, or services to a school corporation.
    (c) The terms and conditions under which programs, classes, or services are to be provided must be specified in a contract between the state educational institution and the governing body of the school corporation.
    Sec. 10. (a) A school corporation, including a school township, shall adopt a policy concerning criminal history information for individuals who:
        (1) apply for:
            (A) employment with the school corporation; or
            (B) employment with an entity with which the school corporation contracts for services;
        (2) seek to enter into a contract to provide services to the school corporation; or
        (3) are employed by an entity that seeks to enter into a contract to provide services to the school corporation;
if the individuals are likely to have direct, ongoing contact with children within the scope of the individuals' employment.
    (b) A school corporation, including a school township, shall administer a policy adopted under this section uniformly for all individuals to whom the policy applies. A policy adopted under this section may require any of the following:
        (1) The school corporation, including a school township, may request limited criminal history information concerning each applicant for noncertificated employment or certificated employment from a local or state law enforcement agency before or not later than three (3) months after the applicant's employment by the school corporation.
        (2) Each individual hired for noncertificated employment or certificated employment may be required to provide a written consent for the school corporation to request under IC 10-13-3 limited criminal history information or a national criminal history background check concerning the individual before or not later than three (3) months after the individual's employment by the school corporation. The school corporation may require the individual to provide a set of fingerprints and pay any fees required for a national criminal history background check.
        (3) Each individual hired for noncertificated employment may be required at the time the individual is hired to submit a certified copy of the individual's limited criminal history (as defined in IC 10-13-3-11) to the school corporation.
        (4) Each individual hired for noncertificated employment may be required at the time the individual is hired to:
            (A) submit a request to the Indiana central repository for limited criminal history information under IC 10-13-3;
            (B) obtain a copy of the individual's limited criminal history; and
            (C) submit to the school corporation the individual's limited criminal history and a document verifying a disposition (as defined in IC 10-13-3-7) that does not appear on the limited criminal history.
        (5) Each applicant for noncertificated employment or certificated employment may be required at the time the individual applies to answer questions concerning the individual's limited criminal history. The failure to answer honestly questions asked under this subdivision is grounds for termination of the employee's employment.
        (6) Each individual that:
            (A) seeks to enter into a contract to provide services to a

school corporation; or
            (B) is employed by an entity that seeks to enter into a contract with a school corporation;
        may be required at the time the contract is formed to comply with the procedures described in subdivisions (2), (4), and (5). An individual who is employed by an entity that seeks to enter into a contract with a school corporation to provide student services in which the entity's employees have direct contact with students in a school based program may be required to provide the consent described in subdivision (2) or the information described in subdivisions (4) and (5) to either the individual's employer or the school corporation. Failure to comply with subdivisions (2), (4), and (5), as required by the school corporation, is grounds for termination of the contract. An entity that enters into a contract with a school corporation to provide student services in which the entity's employees have direct contact with students in a school based program is allowed to obtain limited criminal history information or a national criminal history background check regarding the entity's applicants or employees in the same manner that a school corporation may obtain the information.
    (c) If an individual is required to obtain a limited criminal history under this section, the individual is responsible for all costs associated with obtaining the limited criminal history.
    (d) Information obtained under this section must be used in accordance with IC 10-13-3-29.
    Sec. 11. (a) This section applies to:
        (1) a school corporation; and
        (2) an entity:
            (A) with which the school corporation contracts for services; and
            (B) that has employees who are likely to have direct, ongoing contact with children within the scope of the employees' employment.
    (b) A school corporation or entity may use information obtained under section 10 of this chapter concerning an individual's conviction for one (1) of the following offenses as grounds to not employ or contract with the individual:
        (1) Murder (IC 35-42-1-1).
        (2) Causing suicide (IC 35-42-1-2).
        (3) Assisting suicide (IC 35-42-1-2.5).
        (4) Voluntary manslaughter (IC 35-42-1-3).


        (5) Reckless homicide (IC 35-42-1-5).
        (6) Battery (IC 35-42-2-1) unless ten (10) years have elapsed from the date the individual was discharged from probation, imprisonment, or parole, whichever is later.
        (7) Aggravated battery (IC 35-42-2-1.5).
        (8) Kidnapping (IC 35-42-3-2).
        (9) Criminal confinement (IC 35-42-3-3).
        (10) A sex offense under IC 35-42-4.
        (11) Carjacking (IC 35-42-5-2).
        (12) Arson (IC 35-43-1-1), unless ten (10) years have elapsed from the date the individual was discharged from probation, imprisonment, or parole, whichever is later.
        (13) Incest (IC 35-46-1-3).
        (14) Neglect of a dependent as a Class B felony (IC 35-46-1-4(b)(2)), unless ten (10) years have elapsed from the date the individual was discharged from probation, imprisonment, or parole, whichever is later.
        (15) Child selling (IC 35-46-1-4(d)).
        (16) Contributing to the delinquency of a minor (IC 35-46-1-8), unless ten (10) years have elapsed from the date the individual was discharged from probation, imprisonment, or parole, whichever is later.
        (17) An offense involving a weapon under IC 35-47 or IC 35-47.5, unless ten (10) years have elapsed from the date the individual was discharged from probation, imprisonment, or parole, whichever is later.
        (18) An offense relating to controlled substances under IC 35-48-4, unless ten (10) years have elapsed from the date the individual was discharged from probation, imprisonment, or parole, whichever is later.
        (19) An offense relating to material or a performance that is harmful to minors or obscene under IC 35-49-3, unless ten (10) years have elapsed from the date the individual was discharged from probation, imprisonment, or parole, whichever is later.
        (20) An offense relating to operating a motor vehicle while intoxicated under IC 9-30-5, unless five (5) years have elapsed from the date the individual was discharged from probation, imprisonment, or parole, whichever is later.
        (21) An offense that is substantially equivalent to any of the offenses listed in this subsection in which the judgment of conviction was entered under the law of any other

jurisdiction.
    (c) An individual employed by a school corporation or an entity described in subsection (a) shall notify the governing body of the school corporation, if during the course of the individual's employment, the individual is convicted in Indiana or another jurisdiction of an offense described in subsection (b).
    Sec. 12. Except for IC 20-26-4-1, IC 20-26-4-4, and IC 20-26-4-5, the powers given each school corporation in IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 21-2-19, and IC 21-2-21 and the limitations on those powers set out in IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 21-2-19, and IC 21-2-21 may not be construed to limit the authority of the governing body given by any other statute or rule.
    Sec. 13. Except as provided in section 12 of this chapter, IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 21-2-19, and IC 21-2-21 is supplemental to all other statutes and rules. The powers given to any school corporation under IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 21-2-19, and IC 21-2-21 are in addition to those given by any other statute or rule and are not subject to any limitations set out in those statutes or to comply with those statutes, except to the extent provided in IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 21-2-19, and IC 21-2-21 by specific reference to a designated statute or the statute or rule relating to a given subject. All statutes in conflict with IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 21-2-19, and IC 21-2-21 are repealed to the extent of the conflict.
    Sec. 14. IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 21-2-19, and IC 21-2-21 shall be liberally construed to permit the governing body of a school corporation to conduct its affairs in a manner consistent with sound business practice to the ends that the authority of the governing body is clarified and that it is permitted to operate with the maximum efficiency consistent with accountability.
    Sec. 15. A governing body in operating a school lunch program under section 4(11) of this chapter may use either of the following accounting methods:
        (1) It may supervise and control the program through the school corporation account, establishing a school lunch fund.
        (2) It may cause the program to be operated by the individual schools of the school corporation through the school corporation's extracurricular account or accounts in accordance with IC 20-26-6.


    Sec. 16. (a) A governing body in operating a textbook rental program under IC 20-26-5-4(12) may use either of the following accounting methods:
        (1) The governing body may supervise and control the program through the school corporation account, establishing a textbook rental fund.
        (2) If textbooks have not been purchased and financial commitments or guarantees for the purchases have not been made by the school corporation, the governing body may cause the program to be operated by the individual schools of the school corporation through the school corporation's extracurricular account or accounts in accordance with IC 20-26-6.
    (b) If the governing body determines that a hardship exists due to the inability of a student's family to purchase or rent textbooks taking into consideration the income of the family and the demands on the family, it may furnish textbooks to such students without charge, without reference to the application of any other statute or rule except IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 21-2-19, and IC 21-2-21.
    Sec. 17. (a) If a school lunch fund is established under section 15 of this chapter and a textbook rental fund is established under section 16 of this chapter, the receipts and expenditures from a fund for the program to which the fund relates shall be made to and from the fund without appropriation or the application of other statutes and rules relating to the budgets of municipal corporations.
    (b) If either the lunch program or textbook rental program is handled through the extracurricular account, the governing body of the school corporation shall approve the amount of the bond of the treasurer of the extracurricular account in an amount considered by it sufficient to protect the account for all funds coming into the hands of the treasurer of the account.
    Sec. 18. For purposes of IC 20-26-5-1 and under the powers of IC 20-26-5-4(20), the governing body of any school corporation may join and associate with groups of other school corporations within Indiana in regional school study councils to examine common school problems and exchange educational information of mutual benefit, and dues to the study councils shall be paid by the school corporation from the general fund.
    Sec. 19. A governing body under its powers to fix and pay the salaries and compensation of employees of the school corporation

and to contract for services under IC 20-26-5-4(8) may distribute payroll based on contractual and salary schedule commitments instead of payroll estimates approved in advance by the governing body.
    Sec. 20. The governing body of any school corporation may permit any of its facilities to be used by any person in situations and at times that do not interfere with use of the facility for school purposes, as for example:
        (1) use of a swimming pool or other athletic facility; or
        (2) use of classrooms or other space in a school for purposes of school age childcare;
and may incur any necessary expense in the use or operation of the facility. The governing body may set up and charge a schedule of fees for admission to or use of any facility outside the school corporation's regular school program. Fees shall be deposited in the general fund or the special school fund of the school corporation.
    Sec. 21. (a) As used in this section, "public school endowment corporation" means a corporation that is:
        (1) organized under the Indiana Nonprofit Corporation Act of 1991 (IC 23-17);
        (2) organized exclusively for educational, charitable, and scientific purposes; and
        (3) formed to provide educational resources to:
            (A) a particular school corporation or school corporations; or
            (B) the schools in a particular geographic area.
    (b) As used in this section, "proceeds from riverboat gaming" means tax revenue received by a political subdivision under IC 4-33-12-6, IC 4-33-13, or an agreement to share a city's or county's part of the tax revenue.
    (c) As used in this section, "political subdivision" has the meaning set forth in IC 36-1-2-13.
    (d) A political subdivision may donate proceeds from riverboat gaming to a public school endowment corporation under the following conditions:
        (1) The public school endowment corporation retains all rights to the donation, including investment powers.
        (2) The public school endowment corporation agrees to return the donation to the political subdivision if the corporation:
            (A) loses the corporation's status as a public charitable organization;


            (B) is liquidated; or
            (C) violates any condition of the endowment set by the fiscal body of the political subdivision.
    (e) A public school endowment corporation may distribute both principal and income.
    Sec. 22. (a) The governing body of a school corporation may donate the proceeds of a grant, a gift, a donation, an endowment, a bequest, a trust, or an agreement to share tax revenue received by a city or county under IC 4-33-12-6 or IC 4-33-13, or other funds not generated from taxes levied by the school corporation, to a foundation under the following conditions:
        (1) The foundation is a charitable nonprofit community foundation.
        (2) The foundation retains all rights to the donation, including investment powers, except as provided in subdivision (3).
        (3) The foundation agrees to do the following:
            (A) Hold the donation as a permanent endowment.
            (B) Distribute the income from the donation only to the school corporation as directed by resolution of the governing body of the school corporation.
            (C) Return the donation to the general fund of the school corporation if the foundation:
                (i) loses the foundation's status as a public charitable organization;
                (ii) is liquidated; or
                (iii) violates any condition of the endowment set by the governing body of the school corporation.
    (b) A school corporation may use income received under this section from a community foundation only for purposes of the school corporation.
    Sec. 23. Public school corporations may enter into agreements with institutions of higher education to provide teaching experience for students of the institutions preparing for the educational profession and for the services of persons working jointly for the school corporation and an institution.
    Sec. 24. (a) An agreement under section 23 of this chapter must set out the responsibilities and rights of the public school corporations, the institutions, and the students or persons who supervise the students and who are working jointly for a school corporation and an institution.
    (b) An agreement must contain:
        (1) a provision for the payment of an honorarium for

consulting services by the institution of higher education directly to the supervisor; and
        (2) a provision that, if the sum paid by the institution to the supervisor should ever be lawfully determined to be a wage rather than an honorarium by an instrumentality of the United States, then the institution of higher education shall be considered under the agreement to be the supervisor's part-time employer.
    (c) The provisions required by subsection (b) must be included in an agreement entered into or renewed under this chapter after June 30, 1981. Public school corporations and institutions of higher education shall revise agreements in effect on July 1, 1981, to include the provisions required by subsection (b).
    Sec. 25. In cities and incorporated towns, a governing body may establish a free public library in connection with the common schools for:
        (1) the care, protection, and operation of the library;
        (2) the care of books and other materials; and
        (3) borrowing and returning books and other materials and penalties for any violations.
However, in any city or incorporated town where there is established a library open to all the people, a tax may not be levied.
    Sec. 26. The governing body may levy a tax of not more than one tenth cent ($0.001) on each one dollar ($1) of taxable property assessed for taxation in a city or incorporated town in each year. The tax shall be placed on the tax duplicate of the city or incorporated town and collected in the same manner as other taxes. The taxes shall be paid to the governing body for the support and maintenance of the public library. The governing body may use tax revenues received under this section and gifts, devises, and grants to:
        (1) provide suitable facilities for the library;
        (2) purchase books and other materials; and
        (3) hire necessary personnel.
    Sec. 27. A city or incorporated town in which a free public library is established under this chapter may acquire by purchase or take and hold by gift, grant, or devise any real estate necessary for, or that is donated or devised for, the library. Any revenue derived from the real property shall be used for the library.
    Sec. 28. A governing body may establish and maintain nursery schools for the instruction of children less than six (6) years of age. Expenses of operating the nursery schools shall be paid in the same

manner as other expenses of the school corporation.
    Sec. 29. A school corporation may establish and maintain nursery schools from the same revenue in the same manner as other grades and departments in the common schools of the school corporation are provided for and may apply for and receive from any state or federal governmental agency any funds as may be made available through the agencies for that purpose.
    Sec. 30. A school corporation may use funds under section 27 of this chapter for the aid, maintenance, and support of nursery schools conducted by an association incorporated to operate a nursery school.
    Chapter 6. Treasurer and Accounting
    Sec. 1. As used in this chapter, "treasurer" includes an assistant treasurer or a deputy treasurer.
    Sec. 2. All public school governing bodies in Indiana shall adopt and fully and accurately implement a single, unified accounting system as prescribed by the state board and the state board of accounts.
    Sec. 3. (a) A public school must have a treasurer for purposes of this chapter. The superintendent or principal of the particular school or a clerk of the school corporation or member of the faculty appointed by the superintendent or principal shall be the treasurer. This designation must be made immediately upon the opening of the school term or the vacating of the treasurership. Claims shall be filed and paid under section 4 of this chapter. The employing or appointing officials of a school may appoint and engage a school treasurer or clerk.
    (b) A school corporation may appoint one (1) or more assistant or deputy treasurers.
    Sec. 4. (a) The treasurer has charge of the custody and disbursement of any funds collected by a collecting authority and expended to pay expenses:
        (1) approved by the principal or teacher in charge of the school;
        (2) incurred in conducting any athletic, social, or other school function (other than functions conducted solely by any organization of parents and teachers);
        (3) that cost more than twenty-five dollars ($25) during the school year; and
        (4) that are not paid from public funds.
The principal or teacher in charge of the school shall designate a collecting authority to be in charge of the collection of any funds

described in this subsection. Upon collection of any funds, the collecting authority shall deliver the funds, together with an accounting of the funds, to the custody of the school treasurer. The principal may designate different collecting authorities for each separate account of funds described in this subsection.
    (b) The treasurer shall keep an accurate account of all money received by the collecting authority and expended, showing the sources of all receipts and the purposes for which the money was expended and the balance on hand. A copy of the report shall be filed with the township trustee, board of school trustees, or board of school commissioners, not more than two (2) weeks after the close of each school year, together with all records and files of extracurricular activities.
    (c) However, in a school that has two (2) or more semesters in any one (1) school year, the treasurer of the school shall file a copy of the treasurer's financial report of receipts and disbursements with the township trustee, board of school trustees, or board of school commissioners, not more than two (2) weeks after the close of each semester. Records and files of extracurricular activities for the entire school year shall be filed with the last financial semester report of any one (1) school year.
    (d) A copy of the report shall be filed with and kept by the city superintendent having jurisdiction and the county superintendent where the superintendent has jurisdiction. These records are permanent records for five (5) years, after which time they may be destroyed.
    (e) A treasurer is not personally liable for an act or omission occurring in connection with the performance of the duties set forth in this section, unless the act or omission constitutes gross negligence or an intentional disregard of the treasurer's duties.
    Sec. 5. (a) The treasurer shall give a bond in an amount fixed by the superintendent and principal of the school approximating the total amount of the anticipated funds that will come into the hands of the treasurer at any one (1) time during the regular school year. Bonds shall be filed with the trustee or board of school trustees. The surety on the bonds must be a surety company authorized to do business in Indiana. However, the requirement for giving the bond and the requirement to deposit the receipts in a separate bank account, as required in section 6 of this chapter do not apply in any school for which the funds, as estimated by the principal, will not exceed three hundred dollars ($300) during a school year.
    (b) The requirements of this chapter may be fulfilled by the

providing of a comprehensive bonding instrument, including a single blanket position bond, for all extracurricular treasurers. A comprehensive bonding instrument shall be acceptable instead of individual separate personal position bonds.
    Sec. 6. (a) The treasurer shall deposit all receipts in one (1) bank account. The receipts shall be deposited without unreasonable delay. The account is known as the school extracurricular account. The records of each organization, class, or activity shall be kept separate so that the balance in each fund may be known at all times.
    (b) The money in the school extracurricular account may be invested under the conditions specified in IC 5-13-10 and IC 5-13-10.5 for investment of state money. However, investments under this section are at the discretion of the principal. The interest earned from any investment may be credited to the school extracurricular account and need not be credited proportionately to each separate extracurricular fund. The interest earned from the investment may be used for any of the following:
        (1) A school purpose approved by the principal.
        (2) An extracurricular purpose approved by the principal.
    (c) Amounts expended under this section for the purposes described in this section are in addition to the appropriation under IC 20-26-5-4(3).
    Sec. 7. All forms and records for keeping the accounts of the extracurricular activities in school corporations shall be prescribed or approved by the state board of accounts. The records and affairs of the extracurricular activities may be examined by the state board of accounts when in the judgment of the state examiner an examination is necessary. The forms prescribed or approved for keeping these accounts must achieve a simplified system of bookkeeping and shall be paid for, along with the bond required in this chapter, from the special school fund. The funds of all accounts of any organizations, class, or activity shall be accounted separately from all others. Funds may not be transferred from the accounts of any organization, class, or activity except by a majority vote of its members, if any, and by the approval of the principal, sponsor, and treasurer of the organization, class, or activity. However, in the case of athletic funds:
        (1) approval of the transfer must be made by the athletic director, who is regarded as the sponsor; and
        (2) participating students are not considered members.
All expenditures shall be subject to review by the local school

board.
    Chapter 7. Property and Eminent Domain
    Sec. 1. (a) If a governing body of a school corporation determines that any real or personal property:
        (1) is no longer needed for school purposes; or
        (2) should, in the interests of the school corporation, be exchanged for other property;
the governing body may sell or exchange the property in accordance with IC 36-1-11.
    (b) Money derived from the sale or exchange of property under this section shall be placed in any school fund:
        (1) established under applicable law; and
        (2) that the governing body considers appropriate.
    Sec. 2. A governing body of a school corporation may deposit insurance proceeds received as a result of damage to real or personal property in any school fund:
        (1) established under applicable law; and
        (2) that the governing body considers appropriate.
    Sec. 3. Any building or other property owned by a civil township may be conveyed to the corresponding school township in the manner prescribed in section 4 of this chapter.
    Sec. 4. (a) To transfer or convey a building or other property from a civil township to the corresponding school township, a petition may be filed with the board of commissioners of the county in which the civil township is located that:
        (1) asks for the conveyance or transfer of the building or other property;
        (2) describes the nature of the building or other property to be conveyed or transferred; and
        (3) contains the reasons for the conveyance or transfer.
    (b) A petition must be:
        (1) signed by a majority of the legal voters residing in the civil township; and
        (2) filed in the office of the county auditor.
When the petition is filed, the petitioners shall give a bond, with good and sufficient freehold sureties, that is payable to the state, approved by the board of county commissioners, and conditioned to pay all expenses if the board of county commissioners does not authorize the proposed conveyance or transfer.
    (c) After a petition is filed, the county auditor shall give notice of the filing of the petition by publication once a week for two (2) consecutive weeks in one (1) newspaper printed and published in

the county and of general circulation in the county in which the civil township is located.
    (d) The board of commissioners shall:
        (1) hear the petition at the next regular meeting and on the day designated in the notice; and
        (2) determine all matters concerning the petition.
If the board is satisfied as to the propriety of granting the petitioners' request, the board shall make a finding to that effect and the trustee of the civil township shall convey the building or other property belonging to the civil township to the corresponding school township. The school township shall hold, control, and manage the building or other property. Expenses incurred in the conveyance of the property, if the conveyance is authorized, shall be paid out of the general funds of the civil township.
    Sec. 5. A school corporation (as defined in IC 36-1-2-17) may convey property owned by the school corporation to a civil city or other political subdivision for civic purposes if:
        (1) the governing body adopts a resolution recommending the transfer and conveyance of the school property;
        (2) the civil city or political subdivision agrees to accept the school property;
        (3) the governing body executes a deed for the school property; and
        (4) the conveyance is not for payment or other consideration.
    Sec. 6. A school corporation that acquires any real property by gift, devise, or bequest shall hold, use, and dispose of the real property under the terms and conditions imposed by the donor or testator.
    Sec. 7. (a) If a common school corporation has acquired or acquires any personal property or real estate by gift, devise, or bequest concerning which the donor or testator, at the time of making the gift, bequest, or devise, does not include conditions or directions concerning the gift, bequest, or devise inconsistent with this section, the principal of the gifts, devises, and bequests is inviolate, but the interest, rents, incomes, issues, and profits thereof may be expended by the school corporation. The interest, rent, incomes, issues, and profits may not be devoted:
        (1) to the payment of any obligation of the corporation incurred before the property was acquired;
        (2) to the payment of the salaries or wages of:
            (A) teachers of the branches commonly and generally taught in the public schools; or


            (B) school or library officers or employees; or
        (3) to purchase ordinary school furniture or supplies of the character required by the corporation to be paid for from the current income or revenue coming to it from taxes or by operation of law.
However, the interest, rents, incomes, issues, and profits may be devoted to any public educational or public library or similar purpose for which the managing board or trustee of the corporation believes adequate financial provision has not been made by law.
    (b) If:
        (1) the board or trustee desires to invest the principal of the gift, devise, or bequest in the erection or equipping, or both, of a building to be devoted to a special use of a public educational or library character; and
        (2) the expressed will of the donor or testator will not be violated;
the principal may be used for that purpose, notwithstanding any other provision of this chapter. This subsection may not be construed to permit its use for the building or equipping of buildings for ordinary graded or high schools.
    Sec. 8. (a) If the board of trustees or school commissioners of a corporation governed by sections 6 through 9 of this chapter desires:
        (1) to appoint one (1) or more trustees to hold the title to any property, real or personal, acquired by the board or commissioners in the manner mentioned in sections 6 through 9 of this chapter, unless the wish and will of the donor or testator would be violated; and
        (2) to invest the principal and pay over only the net interest, rents, issues, incomes, and profits of the fund to the school corporation for use as provided in sections 6 through 9 of this chapter;
the school corporation may name and appoint one (1) or more trustees and to vest in the trustees the title to the property, subject to trust and powers as the school corporation may impose, not inconsistent with the expressed wish or will of the donor or testator or this chapter applicable to the property if a transfer to a trustee has not been made.
    (b) However, if:
        (1) the managing board of the school corporation consists of less than three (3) persons; and
        (2) the school corporation elects to have the property held and managed by trustees;
the corporation shall establish the terms of the trust and make the conveyance, and the judge of the circuit court of the county in which the school corporation is domiciled shall appoint at least three (3) trustees.
    Sec. 9. (a) It is the main purpose of this chapter that the identity of the principal of gifts, bequests, and devises to the state's public schools may not be lost and that the income from investment of the gifts, bequests, and devises shall be used in giving students the public education and library advantages that could not be enjoyed if only the school and library revenue and income provided by law were available.
    (b) Sections 6 through 9 of this chapter may not be construed as a limitation against the investment and reinvestment either by the school corporation itself or the trustees appointed under section 8 of this chapter, as the safety of the fund or the best interests of the recipient school corporation require.
    Sec. 10. (a) If a person gives or bequeaths to trustees an amount of money that exceeds five thousand dollars ($5,000) to erect a public school building or seminary in any unincorporated town, and upon the express or implied condition contained in the gift or bequest that an equal amount shall be raised by the citizens of the town or township for a like purpose, the township trustee of the township in which the town is located shall, upon the petition of a majority of the legal voters of the township, prepare, issue, and sell the bonds of the township to secure a loan of not more than fifteen thousand dollars ($15,000), in anticipation of the revenue for special school purposes, to comply with the condition attached to the gift or devise. The bonds must bear a rate of interest of not more than seven percent (7%) per annum, payable at such time, within seven (7) years after the date, as the trustee determines.
    (b) Notwithstanding subsection (a), until all the bonds of any one (1) issue have been redeemed:
        (1) the township trustee may not make another issue; and
        (2) bonds may not be sold at a less rate than ninety-five cents ($0.95) on the dollar.
    Sec. 11. The whole number of votes cast for candidates for Congress at the last preceding congressional election in the township is considered to be the whole number of legal voters of the township. A majority of the names of these legal voters must be signed to the petition presented to the township trustee, to which

petition shall be attached the affidavit or affidavits, as the trustee considers necessary, of a competent and credible person or persons that the signatures of all the names to the petition are genuine and that the persons who signed the petition are, as the trustee believes, legal voters of the township.
    Sec. 12. (a) The township trustee shall:
        (1) record the petition and the attached names in the record book of the township; and
        (2) file and preserve the petition, entering into the record the date and time the petition was filed.
    (b) If the township trustee is satisfied that the petition contains the names of a majority of the legal voters of the township, the township trustee shall prepare, issue, and sell bonds of the amount listed in the petition, as provided in section 10 of this chapter.
    (c) The township trustee shall accurately keep a record of all proceedings concerning:
        (1) the issue and sale of the bonds;
        (2) to whom and for what amount the bonds are sold;
        (3) the rate of interest; and
        (4) the time when the bonds become due.
    Sec. 13. If:
        (1) the trustees of school corporations of a city or town believe; or
        (2) the township trustee of a township believes;
it is necessary to purchase any real estate on which to build a schoolhouse, or for any other purpose connected with the real estate, the township trustee or school trustees, or a majority of them, may file a petition in the circuit court of the county asking for the appointment of appraisers to appraise and assess the value of the real estate.
    Sec. 14. Ten (10) days after a petition is filed under section 13 of this chapter, the court shall appoint three (3) freeholders who reside in the school corporation or township where the real estate is located to appraise and assess the value of the real estate.
    Sec. 15. (a) Before making the appraisement and assessment, the appraisers shall take an oath before the clerk of the court to make a fair, true, and honest appraisement of the real estate.
    (b) After taking the oath under subsection (a), the appraisers shall examine the real estate, hear evidence they consider necessary, and make a report of their appraisement to the court not more than five (5) days after their appointment.
    (c) After the examination under subsection (b), the township

trustee or school trustees of the school corporation, or a majority of them, may pay to the clerk of the court, for the use of the owner or owners of the real estate, the amount assessed.
    (d) When the payment is made under subsection (c) and the payment is shown to the court hearing the cause:
        (1) the title to the real estate vests immediately in the school corporation or school township for school purposes;
        (2) the court shall cause the real estate to be conveyed to the school corporation or school township by a commissioner appointed for that purpose; and
        (3) the school corporation or school township may immediately take possession of the real estate for the purpose.
    (e) When the report of the appraisers is filed, any party to the action, not later than ten (10) days, may except to the amount of the appraisement and valuation of the real estate and a trial may be had on the exception before the court as other civil causes are tried. The court shall fix the amount of the appraisement and assessment, and any party to the action may appeal the judgment of the court as other civil cases are appealed.
    (f) If the township trustee or school trustees, or a majority of them, except to the amount of the appraisement and assessment:
        (1) the court shall convey the real estate to the school corporation or school township;
        (2) the title to the real estate vests immediately in the school corporation or school township for the purposes; and
        (3) subsequent proceedings upon the exceptions affect only the amount of the appraisement and assessments.
    Sec. 16. Before the filing of the petition, the township trustee or school trustees, or a majority of them, may offer or tender to the owner or owners of the real estate an amount considered a reasonable value for the real estate. If the amount fixed by the appraisers or by the court later becomes the same or less than the amount tendered:
        (1) the cause shall be prosecuted at the cost of the owner or owners of the real estate; and
        (2) upon exception to the amount fixed by the appraisers, if the exceptor does not increase the amount of the appraisement and assessment, the action on the exception shall be at the cost of the exceptor.
If an amount has not been tendered by the township trustee or school trustees, or a majority of them, and an exception is not taken, the action shall be prosecuted at the cost of the petitioners.


    Sec. 17. (a) A school corporation may:
        (1) purchase buildings or lands, or both, for school purposes; and
        (2) improve the buildings or lands, or both.
    (b) An existing building, other than a building obtained under IC 5-17-2 (before its repeal) or IC 4-13-1.7, permitting the purchase of suitable surplus government buildings, may not be purchased for use as a school building unless the building was originally constructed for use by the school corporation and used for that purpose for at least five (5) years preceding the acquisition as provided in this section through section 19 of this chapter.
    (c) Notwithstanding this section through section 19 of this chapter limiting the purchase of school buildings, a school corporation may:
        (1) purchase suitable buildings or lands, or both, adjacent to school property for school purposes; and
        (2) improve the buildings or lands, or both, after giving notice to the taxpayers of the intention of the school corporation to purchase.
The taxpayers of the school corporation have the same right of appeal to the department of local government finance under the same procedure as provided for in IC 6-1.1-20-5 through IC 6-1.1-20-6.
    Sec. 18. A school corporation may issue and sell bonds under the general statutes governing the issuance of bonds to purchase and improve buildings or lands, or both. All laws relating to the filing of petitions, remonstrances, and objecting petitions, giving notices of the filing of petitions, the determination to issue bonds, and the appropriation of the proceeds of the bonds are applicable to the issuance of bonds under sections 17 through 19 of this chapter.
    Sec. 19. (a) If:
        (1) a school township whose boundaries are coterminous with the boundaries of the corresponding civil township has occupied as lessee for at least five (5) years a building constructed for its use as a school building;
        (2) the township board finds that it would be in the best interests of the school township and its taxpayers for the school township to purchase the building; and
        (3) the entire amount required to pay the cost of acquisition cannot be provided by the school township on account of the constitutional debt limitation;
the township board, with the approval of the township trustee, may

authorize the issuance of bonds by each of the school township and the civil township to provide funds to pay the cost of acquisition of the building.
    (b) The amount of the civil township bonds may not exceed the amount required to pay the cost of acquisition over and above the amount that can validly be financed by the school township for that purpose. The issuance of bonds must be authorized by separate resolutions specifying the amount, terms, and conditions of the bonds to be issued by each of the corporations. The bonds issued are the separate obligations of the corporations, respectively. The bonds must be payable at times and in amounts not later than twenty (20) years after the date of issuance as the township board may determine and shall otherwise be authorized, issued, and sold in accordance with the applicable general laws.
    (c) As used in this section, "building" includes the land occupied by the school township for school purposes.
    Sec. 20. (a) It is the policy of the state to promote the acquisition, construction, and erection of school facilities by the off-site construction method so school corporations might obtain needed school facilities that, in many cases, would be denied by the higher cost of conventional construction.
    (b) As used in this section through section 26 of this chapter, "off-site construction" means the fabrication and assembly of the component parts of various materials at a point other than the construction site where the parts are normally fabricated or assembled.
    Sec. 21. (a) If the governing body or officer of a school corporation determines to erect or build a school building or buildings in which off-site construction techniques are to be used, the governing body or officer shall advertise for plans and specifications and for bids covering the plans and specifications.
    (b) A bidder must file the bidder's plans or specifications with its bid.
    (c) The advertisement shall be published once each week for two (2) consecutive weeks in two (2) newspapers published in the school corporation. If only one (1) newspaper is published in the boundaries of the school corporation, the advertisement shall be published in that newspaper and in a newspaper of general circulation published in the county where the school corporation is located. If a newspaper is not published in the boundaries of the school corporation, the advertisement shall be published in any two (2) newspapers of general circulation published in the county

where the school corporation is located. If only one (1) newspaper is published in the county where the school corporation is located, publication in one (1) newspaper is sufficient.
    (d) The advertisement:
        (1) must contain a description of the building or buildings to be erected and the estimated cost; and
        (2) may not require plans and specifications or bids to be filed for at least four (4) weeks after the date of the last publication of the advertisement.
    (e) Subject to other applicable provisions of sections 20 through 25 of this chapter, the school corporation may accept the bid of the lowest bidder submitting plans and specifications considered satisfactory by the school corporation for a building or buildings.
    Sec. 22. A school corporation may issue and sell bonds to construct a building or buildings under the general statutes governing the issuance and sale of bonds by school corporations if not in conflict with sections 20 through 25 of this chapter.
    Sec. 23. (a) Before the execution of a contract under sections 20 through 25 of this chapter, the plans and specifications for a building or buildings, which must be prepared by an architect or engineer registered to practice in Indiana, must be submitted to:
        (1) the state department of health;
        (2) the state fire marshal;
        (3) the state building commissioner; and
        (4) any other agencies designated by law to pass on plans and specifications for school buildings.
    (b) The plans and specifications must be approved by each agency in writing before the execution of the contract.
    Sec. 24. (a) After the completion of a school building or buildings erected or constructed under this chapter and before acceptance by the school corporation, the state building commissioner shall examine and inspect the building or buildings to determine if the requirements of the contract and the plans and specifications have been met.
    (b) The state building commissioner shall immediately report to the school corporation any deviation from any requirements.
    (c) Before final payment and settlement is made, the state building commissioner must file with the governing body or officer an affidavit that all requirements of the contract and of the plans and specifications have been fully and faithfully met.
    Sec. 25. Sections 20 through 24 of this chapter may not be considered to alter, amend, or repeal any other Indiana statute.

However, the provisions of any other statute may not apply to proceedings under sections 20 through 24 of this chapter to the extent that the statute is inconsistent with sections 20 through 24 of this chapter.
    Sec. 26. (a) A common school corporation:
        (1) has the same powers; and
        (2) is subject to the same duties and liabilities;
concerning municipal assessments for the cost of public improvements affecting the common school corporation's real estate that private owners of real estate possess or to which private owners of real estate are subject.
    (b) The real estate of a common school corporation is subject to liens for municipal assessments for public improvements if the real estate:
        (1) had been owned by a private owner; and
        (2) would have been subject to a lien at the time the lien was attached.
    (c) A penalty or an attorney's fee concerning a municipal assessment may not be collected from a school corporation.
    Sec. 27. The superintendent of a school corporation shall cause an annual inspection to be conducted of all heating systems and supporting gas, oil, propane, or any other fuel lines used for school purposes.
    Sec. 28. A report of the inspection described in section 27 of this chapter shall be made to the office of the state fire marshal before September 1 of each year. The report shall be made on forms prescribed and approved by the office of the state fire marshal.
    Sec. 29. A school building may not be condemned and declared unfit for use for school purposes except as provided in sections 30 through 34 of this chapter.
    Sec. 30. A petition signed by:
        (1) the state department of health;
        (2) the state fire marshal; or
        (3) at least twenty-five (25) legal residents of the school corporation in which a school building is located, at least fifteen (15) of whom are resident freeholders;
may be filed with the auditor of the county in which the school corporation is located, alleging that the school building designated in the petition is insanitary or otherwise unfit for use for school purposes and should be condemned.
    Sec. 31. If a petition is filed under section 30 of this chapter, the auditor of the county shall do the following:


        (1) Mail one (1) copy of the petition to:
            (A) the county superintendent of schools; and
            (B) the township trustee or the president of the board of school trustees or board of school commissioners of the school corporation in which the school building is located.
        (2) Give notice by one (1) publication in each of two (2) newspapers circulating in the school corporation in which the school building is located that a hearing will be held:
            (A) at a place and at a time designated in the notice;
            (B) not less than ten (10) days after the date on which the notice is published;
            (C) before the board of county commissioners and the county council of the county, acting jointly; and
            (D) at which an interested person may appear in person or by attorney and be heard.
    Sec. 32. (a) The auditor shall call a special session of the board of county commissioners and the county council to:
        (1) conduct the hearing described in section 31 of this chapter; and
        (2) determine the matter submitted.
    (b) The chairman of the county council shall preside at the hearing.
    Sec. 33. (a) The hearing described in section 32 of this chapter may be adjourned from day to day.
    (b) When the hearing has concluded, the board of county commissioners and county council, acting jointly, shall determine from:
        (1) the evidence submitted;
        (2) an inspection of the building; or
        (3) both the evidence and an inspection;
if the building should be condemned.
    (c) If the board of county commissioners and county council, acting jointly, determine that the building should be condemned, the board and council shall fix a date when the order of the board and council becomes effective. An appeal from the finding and determination of the board of county commissioners may be made to the circuit or superior court of the county in the same manner as appeals are taken from the board of county commissioners.
    Sec. 34. (a) The state board may not:
        (1) revoke the commission of a high school; or
        (2) refuse to grant a commission to a high school when properly applied for;
because of the physical condition of any of the buildings in which the high school is conducted or maintained.
    (b) The credits or the academic standing of a person who is a pupil in or a graduate of a high school may not be affected or determined by the physical condition of the building in which the pupil attended high school.
    Sec. 35. (a) A decision of the state department of health to build, change, or condemn a school building may be appealed by:
        (1) a township trustee;
        (2) a board of school trustees or board of school commissioners;
        (3) a member of a township board; or
        (4) at least ten (10) residents and taxpayers;
of a township, town, or city in which the matter involving the building, changing, or condemnation of a school building occurred. The appeal may be made to a circuit or superior court of the county in which the township is located. A final appeal may be made to any court of last resort in Indiana.
    (b) The appeal must:
        (1) be made in the name of the person making the appeal or in the name of the officer making the appeal; and
        (2) be perfected by filing a complaint or petition:
            (A) in the office of the clerk of the court to which the appeal is taken;
            (B) not more than thirty (30) days after the date of final decision by the state department of health that ordered the changing, condemnation, or building of the school building was made; and
            (C) that sets forth the facts being appealed.
    (c) The:
        (1) state department of health; and
        (2) township trustee, board of school commissioners, or board of school trustees if the appeal is made by the residents and taxpayers or by a member of the township board;
shall be named as defendants in the cause of action.
    (d) Notice of the filing and pendency of the appeal shall be made by serving a summons, regularly issued by the court where cause of action is pending, on the state health commissioner at least ten (10) days before the hearing of the cause.
    (e) The appeal shall be tried as other civil causes are tried in Indiana. If the appeal is made by private citizens, bond approved by the court shall be given to cover costs and reasonable attorney's

fees if the appeal is not sustained.
    Sec. 36. Before the governing body exercises power granted by any law to spend more than one million dollars ($1,000,000) to build, repair, or alter school buildings that would be financed by:
        (1) entering into a lease agreement under IC 21-5-11-7 or IC 21-5-12-7;
        (2) issuing bonds under IC 21-2-21; or
        (3) any other available method;
the governing body may order the preparation and pay the costs of a feasibility study.
    Sec. 37. (a) If the governing body proposes to construct, repair, or alter a school building at a cost of more than one million dollars ($1,000,000) that would be financed by:
        (1) entering into a lease agreement under IC 21-5-11-7 or IC 21-5-12-7;
        (2) issuing bonds under IC 21-2-21; or
        (3) any other available method;
the governing body must hold a public hearing at which explanations of the potential value of the proposed project to the school corporation and to the community shall be given and at which interested parties may present testimony and questions.
    (b) Notice of the hearing shall be given in accordance with IC 5-3-1. The notice must state that on a given day, at an hour, and place, the governing body will meet to discuss and hear objections and support to the proposed construction.
    Sec. 38. At the public hearing and before bids for construction of the project are invited, the governing body shall adopt a resolution that specifies the following:
        (1) The educational purpose the building will serve.
        (2) The estimated cost of construction, including the cost of land.
        (3) Any other pertinent information, including the estimated impact on the tax rate and the proposed sources of funding.
    Sec. 39. (a) If:
        (1) a school corporation; and
        (2) the state, either in the name of the state or in the name of the trustees of an agency of the state;
each own improved or unimproved real estate that lies within the boundaries of the school corporation and that is not needed or required for the purpose for which it was acquired, the school corporation and the state may sell, trade, exchange, or convey to or with each other the unneeded real estate upon such terms and

conditions mutually agreed upon and incorporated in an agreement between the trustees or board of trustees of the school corporation and the state or, if the real estate is held in the name of the trustees of an agency of the state, by the trustees.
    (b) A value must be assigned to each parcel of real estate involved in the sale, trade, or exchange in the agreement. The assigned value must be the fair market value of the real estate as determined by three (3) appraisers appointed as follows:
        (1) One (1) to be appointed by the board of trustees of the school corporation.
        (2) One (1) to be appointed by the state or, if the real estate is held in the name of the trustees of an agency of the state, by the trustees.
        (3) One (1) to be appointed by the two (2).
    (c) The agreement must provide for payment by the party owning the real estate of the smaller value to the other party of the difference of value of the properties.
    Sec. 40. Whenever:
        (1) an agreement described in section 39 of this chapter is executed; and
        (2) the payment of any money is made;
deeds of conveyance shall be executed by the trustees or board of trustees of the school corporation and by the state for the transfer of state owned real estate.
    Chapter 8. Community Use of School Property
    Sec. 1. A board of school trustees in a second or third class city, a board of school trustees of a town, or the school trustees of a school township:
        (1) may, on their own initiative, and shall, upon petition as provided in section 2 of this chapter, establish and maintain for children and adults in the school buildings and on the school grounds under the custody and management of the boards or school trustees of school townships:
            (A) evening schools;
            (B) vacation schools;
            (C) debating clubs;
            (D) community centers;
            (E) gymnasiums;
            (F) public playgrounds;
            (G) public baths; and
            (H) similar activities and accommodations as determined by the boards or school trustees of school townships;


        without charge to the residents of the cities, towns, or townships; and
        (2) may:
            (A) cooperate, by agreement, with other commissioners or boards or school trustees of school townships that have custody and management of public parks, libraries, museums, and other public buildings and grounds to provide the:
                (i) equipment;
                (ii) supervision;
                (iii) instruction; and
                (iv) oversight;
            necessary to conduct public educational and recreational activities in and upon the other buildings and grounds; and
            (B) pay all expenses associated with the activities from the general fund.
    Sec. 2. (a) If:
        (1) a petition is filed with:
            (A) the clerk of a municipality; or
            (B) the trustee of any township;
        that is signed by at least ten percent (10%) of the number of voters voting at the last general election held in the city; or
        (2) a petition is presented that contains the signatures of at least one hundred (100) freeholders living in a town or township;
that sets forth a question in the form prescribed by IC 3-10-9-4 and a date for an election on the question, the question of exercising the powers granted for any of the purposes enumerated in section 1 of this chapter shall be submitted to the electors of the municipalities or townships.
    (b) The clerk or trustee shall certify the public question to the county election board of each county in which the school corporation is located. The county election board shall place the public question on the ballot at the first primary or general election conducted after certification under IC 3-10-9-3. If the first primary or general election will be conducted more than six (6) months after certification, the county election board shall conduct the election not later than thirty (30) days after certification.
    (c) If a majority of the votes cast upon the question are affirmative:
        (1) the board of school trustees of the municipality; or
        (2) the school trustee of the school township;
shall exercise the powers in accordance with the petition under this chapter.
    Sec. 3. (a) The board or school trustee of any school township may receive and expend for purposes of this chapter money received as gifts or appropriations made by individuals, business establishments, or organizations.
    (b) The board or school trustee of a school township may also receive property that donors transfer to the board or school trustee of a school township. The property may be used only in conformity with the purposes of this chapter.
    Sec. 4. (a) The board of school trustees in a third class city may establish, maintain, and equip public playgrounds to be used by children during the summer vacation period. The board may use the public school buildings and grounds in the cities as is necessary to carry out this section. The board may levy a tax not exceeding sixty-seven hundredths of one cent ($0.0067) on each one hundred dollars ($100) of assessed valuation of the property in the city to create a fund to carry out this section. The board may lease or purchase grounds in addition to the school grounds, either adjacent to the school grounds or elsewhere in the city. The board may also, under eminent domain statutes, condemn ground to be used for these purposes and pay for condemned ground out of the school revenues of the city not otherwise appropriated.
    (b) The board:
        (1) has full control of all playgrounds, including the preservation of order on playgrounds; and
        (2) may adopt suitable rules, regulations, and bylaws for the control of playgrounds. The board may enforce the rules by suitable penalties.
    (c) The board may select and pay for directors and assistants. The directors and assistants, while on duty and to preserve order and the observance of the rules, regulations, and bylaws of the board, have all the powers of police officers of the city. The compensation for the directors and assistants shall be:
        (1) fixed by the board; and
        (2) paid for out of the school revenues not otherwise appropriated.
    Sec. 5. If a district public school has been abandoned and the schoolhouse and school grounds in the district are no longer used or needed for public school purposes, the township trustee in charge of the school building and school grounds:
        (1) shall, upon application of at least fifty-one percent (51%)

of the freehold residents of the school district, allow the use of the abandoned schoolhouse and school grounds as a community center for nonpartisan gatherings of citizens of the school district for civic, social, and recreational purposes; and
        (2) may not sell or offer for sale any building or grounds:
            (A) while the building or grounds are used as a community center; or
            (B) for at least one (1) year after the discontinuance of the use of any abandoned schoolhouse and school grounds for a community center.
    Sec. 6. (a) The operation and management of a community center shall be vested in a nonprofit corporation organized for that purpose under the general laws regulating the formation of nonprofit corporations.
    (b) The membership of a nonprofit corporation described in subsection (a) must be composed of resident freeholders of the school district.
    (c) The expenses of improvement of the school grounds and reconstruction or repairs of the abandoned schoolhouse shall be paid for by the corporation in charge of the community center while the school grounds or schoolhouse is operated and managed as a community center.
    Sec. 7. An established community center in a school district shall cease its operation in the schoolhouse and upon the school grounds not more than one (1) month following the receipt of a written notice:
        (1) submitted to the proper officers of the corporation of the community center; and
        (2) by the township trustee of the township where the community center is being operated;
that indicates the school building and school grounds are needed for school purposes.
    Sec. 8. If:
        (1) a third class city in which a school corporation of the city has purchased, in the name of the school corporation, real estate to be used for school purposes; and
        (2) the real estate is subsequently abandoned for school purposes;
the school trustees of the school corporations may authorize the use of the real estate for park purposes as provided by this chapter.
    Sec. 9. (a) Money may not be expended out of a school

corporation treasury for the maintenance of abandoned school grounds for park purposes.
    (b) However, the board of school trustees of a school corporation in a third class city that owns abandoned school grounds may, by an order entered and properly recorded, allow the use of abandoned school grounds by a third class city for park purposes. The order must contain the conditions, restrictions, and limitations within which the third class city may take and use the abandoned school grounds for park purposes.
    Sec. 10. (a) A third class city may, by an ordinance of the common council, accept from a school corporation located within the city the use of abandoned school grounds as provided by this chapter.
    (b) A third class city may, by an ordinance of the common council, accept from a person for a definite time of at least five (5) years the use of any real estate in the city formerly used as a cemetery if:
        (1) the cemetery has been abandoned; and
        (2) the bodies have been removed from the cemetery.
    (c) A third class city may, through its common council, use and maintain real estate described in subsections (a) and (b) for park purposes for the use of the general public under the same conditions and restrictions provided by law for the use and control and maintenance of park properties by third class cities as if the city owned the real estate.
    (d) A third class city may accept by city ordinance real estate for park purposes under the order of the school trustees of the school corporation as provided by this chapter or from another person.
    Sec. 11. The:
        (1) title to the real estate remains in the school corporation; and
        (2) use by third class cities continues;
while the cities continue to maintain the real estate as a public park.
    Sec. 12. If:
        (1) real estate has been accepted for park purposes; and
        (2) a city abandons the use of the real estate for park purposes;
the school trustees of the school corporation that owns the real estate may take possession of the real estate and sell or otherwise convey the real estate.


    Sec. 13. (a) In a school township located in a county having a population of:
        (1) more than four hundred thousand (400,000) but less than seven hundred thousand (700,000); or
        (2) more than two hundred thousand (200,000) but less than three hundred thousand (300,000);
the township trustee, in administering the recreation program under this chapter, may supplement the funds by making a reasonable charge for admission to any outdoor swimming pool located on the school township property and owned by the school township.
    (b) With the approval of the township board, the township trustee shall establish the admission fee or a schedule of admission fees to be collected for the use of the swimming pool. Fees collected shall be deposited in a recreation fund established under this chapter. Disbursements for personal services, operation, maintenance, and repairs of the swimming pool shall be paid from the recreation fund.
    Chapter 9. School Breakfast and Lunch Programs
    Sec. 1. As used in this chapter, "participating school corporation" refers to a school corporation that includes at least one (1) qualifying school building.
    Sec. 2. As used in this chapter, "qualifying school building" refers to a public school building in which:
        (1) at least twenty-five percent (25%) of the students who were enrolled at that school building during the prior school year qualified for free or reduced price lunches under guidelines established under 42 U.S.C. 1758(b); and
        (2) lunches are served to students.
    Sec. 3. As used in this chapter, "school" means the following:
        (1) An Indiana public school in which any grade from kindergarten through grade 12 is taught.
        (2) A nonpublic school in which any grade from kindergarten through grade 12 is taught that is not operated for profit in whole or in part.
    Sec. 4. As used in this chapter, "school board" means:
        (1) when applicable to a public school of Indiana, the board of school trustees, board of school commissioners, school board of incorporated towns and cities, and township school trustees; or
        (2) when applicable to a school other than a public school, a person or agency in active charge and management of the

school.
    Sec. 5. As used in this chapter, "school breakfast program" refers to a program under which breakfast is served at a qualifying school building on a nonprofit basis to students enrolled at the qualifying school building.
    Sec. 6. As used in this chapter, "school lunch program" means a program under which lunches are served by a school in Indiana on a nonprofit basis to children in attendance, including any program under which a school receives assistance out of funds appropriated by the Congress of the United States.
    Sec. 7. (a) The state superintendent may accept and direct the disbursement of funds appropriated by any act of the United States Congress and apportioned to the state for use in connection with school lunch programs.
    (b) The state superintendent shall deposit all funds received from the federal government with the treasurer of state in a special account or accounts to facilitate the administration of the program. The treasurer of state shall make disbursements from the account or accounts upon direction of the state superintendent.
    Sec. 8. (a) The state superintendent may enter into agreements with a school board or with any other agency or person, prescribe regulations, employ personnel, and take any action that the state superintendent may consider necessary to provide for the establishment, maintenance, operation, and expansion of a school lunch program and to direct the disbursement of federal and state funds under any federal or state law.
    (b) The state superintendent may give technical advice and assistance to a school corporation in connection with the establishment and operation of a school lunch program and may assist in training personnel engaged in the operation of the program. The state superintendent and any school corporation or sponsoring agency may accept any gift for use in connection with a school lunch program.
    Sec. 9. A governing body may:
        (1) operate or, by the appointment of a sponsoring agency, provide for the operation of school lunch programs in schools under the governing body's jurisdiction;
        (2) contract with respect to food, services, supplies, equipment, and facilities for the operation of the programs; and
        (3) use funds disbursed under this chapter and gifts and other funds received from the sale of school lunches under the

programs.
    Sec. 10. (a) The state superintendent shall prescribe rules for keeping accounts and records and making reports by or under the supervision of a governing body.
    (b) The accounts and records shall:
        (1) be available for inspection and audit at all times by authorized officials; and
        (2) be preserved for at least five (5) years, as the state superintendent may prescribe.
    (c) The state superintendent shall conduct or cause to be conducted any audits, inspections, and administrative reviews of acts, records, and operations of a school lunch program necessary to do the following:
        (1) Determine whether agreements with the governing body and rules under this chapter are being complied with.
        (2) Ensure that a school lunch program is effectively administered.
    Sec. 11. The state superintendent may, to the extent that funds are available and in cooperation with other appropriate agencies and organizations, do the following:
        (1) Conduct studies of methods of improving and expending school lunch programs and promoting nutritional education in the schools.
        (2) Conduct appraisals of the nutritive benefits of school lunch programs.
        (3) Report the findings and recommendations periodically to the governor.
    Sec. 12. (a) School cities, school townships, school towns, and joint districts may:
        (1) establish, equip, operate, and maintain school kitchens and school lunchrooms for the improvement of the health of students and for the advancement of the educational work of their respective schools;
        (2) employ all necessary directors, assistants, and agents; and
        (3) appropriate funds for the school lunch program.
Participation in a school lunch program under this chapter is discretionary with the governing board of a school corporation.
    (b) If federal funds are not available to operate a school lunch program:
        (1) the state may not participate in a school lunch program; and
        (2) money appropriated by the state for that purpose and not

expended shall immediately revert to the state general fund.
    (c) Failure on the part of the state to participate in the school lunch program does not invalidate any appropriation made or school lunch program carried on by a school corporation by means of gifts or money raised by tax levy under this chapter.
    Sec. 13. The governing body of a participating school corporation shall implement or contract for the implementation of a school breakfast program at each qualifying school building within the school corporation's boundaries.
    Sec. 14. A governing body shall implement the governing body's breakfast program in compliance with the requirements for participation in the national school breakfast program under 42 U.S.C. 1773 et seq.
    Sec. 15. The department shall assist each participating school corporation in implementing the school's breakfast program and in making all appropriate applications to the federal government for available financial assistance on behalf of the participating school corporation.
    Sec. 16. The department shall monitor the school breakfast programs required under this chapter and maintain complete and accurate records of the programs.
    Sec. 17. (a) The department shall establish guidelines to implement this chapter.
    (b) The state board may adopt rules under IC 4-22-2 to implement this chapter.
    Chapter 10. Joint Programs and Personnel
    Sec. 1. As used in sections 2 through 9 of this chapter, "joint program" means the joint employment of personnel, joint purchase of supplies or other material, or joint purchase or lease of equipment, joint lease of land or buildings, or both, or joint construction of, remodeling of, or additions to school buildings, by two (2) or more school corporations, for a particular program or purpose. The term includes the joint investment of money under IC 5-13, data processing operations, vocational education, psychological services, audiovisual services, guidance services, special education, and joint purchasing related to the acquisition of supplies or equipment that are not to be used jointly.
    Sec. 2. As used in sections 3 through 9 of this chapter, "participating school corporations" means all school corporations engaging in a joint program.
    Sec. 3. (a) Two (2) or more school corporations acting through their respective governing bodies may engage in joint programs

under a written agreement executed by all participating school corporations.
    (b) The agreement shall do the following:
        (1) Designate the type of purchases, leases, or investments to be made.
        (2) Prescribe the manner of approving persons employed under the joint program.
        (3) Designate the type of construction, remodeling, or additions to be made on the school buildings.
        (4) Provide for the organization, administration, support, funding, and termination of the program, subject to the provisions of this chapter.
    Sec. 4. An agreement shall designate one (1) of the participating school corporations to administer and supervise the joint program, including receiving and disbursing funds, executing documents, and maintaining records under this chapter and the agreement between the participating school corporations.
    Sec. 5. (a) A teacher employed in a joint program who does not have existing years of service in one (1) of the member corporations of the joint program is considered to have been employed as a teacher by the governing body that is administering the joint program at the time that the teacher is first employed by the joint program.
    (b) The teacher is entitled to the same rights and privileges as set forth in IC 20-28-6 through IC 20-28-10 as if employed as a regular teacher by the governing body that is administering the joint program at the time that the teacher is first employed by the joint program.
    Sec. 6. A teacher who has existing years of service in one (1) of the member school corporations of the joint program shall retain the same rights and privileges as set forth in IC 20-28-6 through IC 20-28-10 as if still employed as a teacher in the school corporation in which the teacher has already acquired years of service.
    Sec. 7. (a) A teacher who loses the teacher's job in a joint program because of:
        (1) a reduction in services;
        (2) a reorganization;
        (3) the discontinuance of the joint program; or
        (4) a withdrawal in whole or in part of a participating school from the joint program;
shall be accorded the same rights that are provided under

IC 20-35-5-11 for teachers from special education cooperatives.
    (b) A teacher who:
        (1) is employed in a joint program under this chapter;
        (2) loses the teacher's job in the joint program as described in subsection (a); and
        (3) subsequently is employed by a participating school corporation as described in subsection (a);
retains the rights and privileges under IC 20-28-6 through IC 20-28-10 that the teacher held at the time the teacher lost the job in the joint program as described in subdivision (2).
    Sec. 8. (a) The governing bodies of participating school corporations may pay into a joint fund, to be known as the joint services, leasing, construction, and supply fund, an amount set forth in the written agreement under section 3 of this chapter. A governing body shall budget and appropriate funds for the joint program from a special school fund or tuition fund of their respective school corporations in accordance with laws governing the use of those funds.
    (b) The joint services, leasing, construction, and supply fund shall be held by the governing body of the school corporation designated in the written agreement to administer and supervise the joint program. The designated governing body shall receive, disburse, and maintain an account for the fund in the same manner as prescribed for other funds of the governing body and under the written agreement but without any further or additional appropriation of the funds. The designated governing body shall make a complete and detailed financial report of all receipts and disbursements not later than thirty (30) days after the end of each school year and shall furnish copies of the report to the governing bodies of all other participating school corporations. The reports required under this chapter are supplementary to and do not supersede or repeal the requirements for publication of annual reports of certain school corporations as provided by IC 5-3-1.
    Sec. 9. (a) The governing bodies of participating school corporations may pay into a joint fund, to be known as the joint investment fund, all or part of the money the governing bodies may otherwise invest under IC 5-13-9. The fund shall be administered by the governing body of the school corporation designated in the written agreement under section 3 of this chapter. The designated governing body shall receive, invest, maintain an account for, and disburse the fund in the same manner as prescribed for other funds for the governing body representing money available for

investment and in accordance with the written agreement.
    (b) With respect to an investment described in IC 5-13-9, quotes may be solicited and received orally, and the investment shall be made with the designated depository that submitted the highest quote. If two (2) or more designated depositories submit the highest quote, the investment shall be made either:
        (1) by dividing the investment among the depositories so as not to lose the benefits of the quotes received; or
        (2) if division is not practicable, by lot.
    (c) The designated depository holding the investment shall remit to the governing body administering the joint program any money due under the investment on the date the investment matures and in the manner directed by the governing body. A designated depository participating in an agreement for joint investment of money under IC 5-13 shall provide a detailed accounting of the transactions as required for audit purposes by the state board of accounts.
    Sec. 10. Two (2) or more school corporations within a county may through their respective school trustees and boards engage in any of the following:
        (1) Joint employment of professional personnel.
        (2) Joint purchases of necessary supplies, equipment, and other materials that the participating school officers consider proper to the operation of their respective schools.
The cost of these services and purchases to participating corporations shall be determined by their proportionate use in the schools of participating corporations. The county superintendent of schools is the administrator of these joint activities.
    Sec. 11. (a) A county board of education may authorize the county superintendent of schools to establish a joint service and supply fund, into which fund the participating school corporations shall pay their proportionate share under an agreement for the joint services and supplies in which the school corporations are interested. The county superintendent of schools may disburse from the service and supply fund proper expenditures to pay salaries of jointly employed personnel and other joint service expenditures.
    (b) The county superintendent of schools shall keep a complete written accounting of all receipts and disbursements related to the joint service and supply fund in a form approved by the state board of accounts. The accounting shall be audited by the state board of accounts. The county superintendent of schools shall

make a complete and detailed financial report of all receipts and disbursements in the joint service and supply fund at the end of each fiscal year and shall furnish copies of the report to all participating school corporations.
    Sec. 12. The purchasing of equipment, supplies, and materials shall be under the same laws and regulations as the purchasing would be if it were by a single school corporation. However, the bids shall be submitted by the superintendent of county schools to the participating corporations for approval.
    Chapter 11. Legal Settlement and Transfer of Students; Transfer Tuition
    Sec. 1. As used in this chapter with respect to legal settlement, transfers, and the payment of tuition, the words "residence", "resides", or other comparable language means a permanent and principal habitation that an individual uses for a home for a fixed or indefinite period, at which the individual remains when not called elsewhere for work, studies, recreation, or other temporary or special purpose. These terms are not synonymous with legal domicile. Where a court order grants an individual custody of a student, the residence of the student is where that individual resides.
    Sec. 2. The legal settlement of a student is governed by the following provisions:
        (1) If the student:
            (A) is less than eighteen (18) years of age; or
            (B) is at least eighteen (18) years of age but is not emancipated;
        the legal settlement of the student is in the attendance area of the school corporation where the student's parents reside.
        (2) If the student's mother and father, in a situation to which subdivision (1) otherwise applies, are divorced or separated, the legal settlement of the student is the school corporation whose attendance area contains the residence of the parent with whom the student is living, in the following situations:
            (A) If a court order has not been made establishing the custody of the student.
            (B) If both parents have agreed on the parent or person with whom the student will live.
            (C) If the parent granted custody of the student has abandoned the student. In the event of a dispute between the parents of the student, or between the parents and a student at least eighteen (18) years of age, the legal

settlement of the student shall be determined as otherwise provided in this section.
        (3) If the legal settlement of a student, in a situation to which subdivision (1) otherwise applies, cannot reasonably be determined and the student is being supported by, cared for by, and living with some other individual, the legal settlement of the student is in the attendance area of that individual's residence, except where the parents of the student are able to support the student but have placed the student in the home of another individual, or allowed the student to live with another individual, primarily for the purpose of attending school in the attendance area where the other individual resides. The school may, if the facts are in dispute, condition acceptance of the student's legal settlement on the appointment of that individual as legal guardian or custodian of the student, and the date of legal settlement will be fixed to coincide with the commencement of the proceedings for the appointment of a guardian or custodian. However, if a student does not reside with the student's parents because the student's parents are unable to support the child and the child is not residing with an individual other than a parent primarily to attend a particular school, the student's legal settlement is where the student resides, and the establishment of a legal guardianship may not be required by the school. In addition, a legal guardianship or custodianship established solely to attend school in a particular school corporation does not affect the determination of the legal settlement of the student under this chapter.
        (4) If a student, to whom subdivision (1) would otherwise apply, is married and living with a spouse, the legal settlement of that student is in the attendance area of the school corporation where the student and the student's spouse reside.
        (5) If the student's parents:
            (A) are living outside the United States due to educational pursuits or a job assignment;
            (B) do not maintain a permanent home in any school corporation in the United States; and
            (C) have placed the student in the home of another individual;
        the legal settlement of the student is in the attendance area where the other individual resides.
        (6) If the student is emancipated, the legal settlement is the

attendance area of the school corporation of the student's residence.
        (7) If a student's legal settlement is changed after the student has begun attending school in a school corporation in any school year, the effective date of change may:
            (A) at the election of:
                (i) the parent;
                (ii) the student if the student is at least eighteen (18) years of age; or
                (iii) a juvenile court conducting a proceeding under IC 31-34-20-5, IC 31-34-21-10, IC 31-37-19-26, or IC 31-37-20-6 (or IC 31-6-4-18.5 before its repeal);
            be extended until the end of that semester; or
            (B) at the discretion of the school, until the end of that school year.
        However, that election, where a student has completed grade 11 in any school year, shall extend to the end of the following school year in grade 12.
        (8) If a juvenile court has:
            (A) made findings of fact concerning the legal settlement of a student under IC 31-34-20-5, IC 31-34-21-10, IC 31-37-19-26, or IC 31-37-20-6 (or IC 31-6-4-18.5 before its repeal); and
            (B) jurisdiction over the student under IC 31-34 or IC 31-37;
        the legal settlement of the student is the attendance area specified as the legal settlement in the latest findings of fact issued by the juvenile court.
    Sec. 3. The state superintendent shall prepare the form of agreement to be used under section 2(2) of this chapter and a form to be executed by any individual with whom the student is living under section 2(2), 2(3), or 2(5) of this chapter. The execution of the form by the individual and its continuance in force is a condition to the application of section 2(2), 2(3), or 2(5) of this chapter. The form must contain an agreement of the individual that the individual shall, with respect to dealing with the school corporation and for all other purposes under this article, assume all the duties and be subject to all the liabilities of a parent of the student in the same manner as if the individual were the student's parent. On the execution of that form and for as long as it remains in force, the individual has these duties and liabilities.
    Sec. 4. A student is emancipated when the student:


        (1) furnishes the student's support from the student's own resources;
        (2) is not dependent in any material way on the student's parents for support;
        (3) files or is required by applicable law to file a separate tax return; and
        (4) maintains a residence separate from that of the student's parents.
    Sec. 5. (a) The parents of any student, regardless of the student's age, or the student after the student has become eighteen (18) years of age may request a transfer from a school corporation in which the student has a legal settlement to a transferee school corporation in Indiana or another state if the student may be better accommodated in the public schools of the transferee corporation. Whether the student can be better accommodated depends on such matters as:
        (1) crowded conditions of the transferee or transferor corporation; and
        (2) curriculum offerings at the high school level that are important to the vocational or academic aspirations of the student.
    (b) The request for transfer must be made in writing to the transferor corporation, which shall immediately mail a copy to the transferee corporation. The request for transfer must be made at the times provided under rules adopted by the state board. The transfer is effected if both the transferee and the transferor corporations approve the transfer not more than thirty (30) days after that mailing. The transfer is denied when either school corporation:
        (1) mails a written denial by certified mail to the requesting parents or student at their last known address; or
        (2) fails to act on the request not more than thirty (30) days after the mailing.
    (c) If a request for transfer is denied, an appeal may be taken to the state board by the requesting parents or student, if commenced not more than ten (10) days after the denial. An appeal is commenced by mailing a notice of appeal by certified mail to the superintendent of each school corporation and the state board. The state superintendent shall develop forms for this purpose, and the transferor corporation shall assist the parents or student in the mechanics of commencing the appeal. An appeal hearing must comply with section 15 of this chapter.
    Sec. 6. (a) A school corporation may accept a transferring student without approval of the transferor corporation under section 5 of this chapter.
    (b) A transfer may not be accepted unless the requesting parents or student pays transfer tuition in an amount determined under the formula established in section 13 of this chapter for the payment of transfer tuition by a transferor school corporation. However, the transferee school may not offset the amounts described in section 13(b) STEP TWO (B) through section 13(b) STEP TWO (D) of this chapter from the amount charged to the requesting parents or student.
    (c) The tuition determined under subsection (b) must be paid by the parents or the student before the end of the school year in installments as determined by the transferee corporation.
    (d) Failure to pay a tuition installment is a ground for exclusion from school.
    Sec. 7. (a) A school corporation may transfer a student with a physical, emotional, or mental disability to a transferee corporation that maintains special programs or facilities for children with the disability of the transferred student.
    (b) A transferee corporation may refuse the transfer under subsection (a) by mailing a notice by certified mail to:
        (1) the transferor corporation;
        (2) the parents of the student; and
        (3) the state board.
    (c) If a transferee corporation refuses transfer under subsection (b), the state board shall determine the question of granting a transfer under the procedures set out in section 15 of this chapter.
    Sec. 8. (a) A student who is placed in a state licensed private or public health care facility, child care facility, or foster family home:
        (1) by or with the consent of the division of family and children;
        (2) by a court order; or
        (3) by a child placing agency licensed by the division of family and children;
may attend school in the school corporation in which the home or facility is located. If the school corporation in which the home or facility is located is not the school corporation in which the student has legal settlement, the school corporation in which the student has legal settlement shall pay the transfer tuition of the student.
    (b) A student who is placed in a state licensed private or public

health care or child care facility by a parent may attend school in the school corporation in which the facility is located if:
        (1) the placement is necessary for the student's physical or emotional health and well-being and, if the placement is in a health care facility, is recommended by a physician; and
        (2) the placement is projected to be for not less than fourteen (14) consecutive calendar days or a total of twenty (20) calendar days.
The school corporation in which the student has legal settlement shall pay the transfer tuition of the student. The parent of the student shall notify the school corporation in which the facility is located and the school corporation of the student's legal settlement, if identifiable, of the placement. Not later than thirty (30) days after this notice, the school corporation of legal settlement shall either pay the transfer tuition of the transferred student or appeal the payment by notice to the department. The acceptance or notice of appeal by the school corporation must be given by certified mail to the parent or guardian of the student and any affected school corporation. In the case of a student who is not identified as disabled under IC 20-35, the state board shall make a determination on transfer tuition according to the procedures in section 15 of this chapter. In the case of a student who has been identified as disabled under IC 20-35, the determination on transfer tuition shall be made under this subsection and the procedures adopted by the state board under IC 20-35-2-1(c)(5).
    (c) A student who is placed in:
        (1) an institution operated by the division of disability, aging, and rehabilitative services or the division of mental health and addiction; or
        (2) an institution, a public or private facility, a home, a group home, or an alternative family setting by the division of disability, aging, and rehabilitative services or the division of mental health and addiction;
may attend school in the school corporation in which the institution is located. The state shall pay the transfer tuition of the student, unless another entity is required to pay the transfer tuition as a result of a placement described in subsection (a) or (b) or another state is obligated to pay the transfer tuition.
    Sec. 9. (a) This section applies to each student:
        (1) described in section 8(a) of this chapter;
        (2) who is placed in a home or facility in Indiana that is outside the school corporation where the student has legal

settlement; and
        (3) for which the state is not obligated to pay transfer tuition.
    (b) Not later than ten (10) days after a county places or changes the placement of a student, the county that placed the student shall notify the school corporation where the student has legal settlement and the school corporation where the student will attend school of the placement or change of placement. Before June 30 of each year, a county that places a student in a home or facility shall notify the school corporation where a student has legal settlement and the school corporation in which a student will attend school if a student's placement will continue for the ensuing school year. The notifications required under this subsection must be made by:
        (1) the county office (as defined in IC 12-7-2-45) if the county office or the division of family and children placed or consented to the placement of the student; or
        (2) if subdivision (1) does not apply, the court or other agency making the placement.
    Sec. 10. (a) A student who is the child of a state employee who resides on state owned property, resides on state owned property, or is the child of a full-time employee of a state supported postsecondary institution, who resides on property owned or operated by the state supported postsecondary institution and used for educational, research, or public service programs is considered a transferred student if:
        (1) the student attends a public school in the school corporation located nearest to the student's residence within the county in which all or a part of either the state owned property, or the property owned or operated by the state supported postsecondary institution, is located; or
        (2) the state owned property is the Soldiers' and Sailors' Children's Home and the student attends a public school in the county in which the home is located or in an adjacent county.
Transfer tuition for a student transferred under this subsection shall be paid by the state. However, this subsection does not apply to children of state employees residing in student housing on property owned by any state supported postsecondary school institution.
    (b) A foreign student visiting in Indiana under any student exchange program approved by the state board is considered a resident student with legal settlement in the school corporation where the foreign exchange student resides. The student may

attend a school in the school corporation in which the family with whom the student is living resides. A school corporation that receives a foreign student may not be paid any transfer tuition. The school corporation shall include the foreign student in computations to determine the amount of state aid that it is entitled to receive.
    Sec. 11. (a) A school corporation may enter into an agreement with:
        (1) a nonprofit corporation that operates a federally approved education program; or
        (2) a nonprofit corporation that:
            (A) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code;
            (B) for its classroom instruction, employs teachers who are certified by the professional standards board;
            (C) employs other professionally and state licensed staff as appropriate; and
            (D) educates children who:
                (i) have been suspended, expelled, or excluded from a public school in that school corporation and have been found to be emotionally disturbed;
                (ii) have been placed with the nonprofit corporation by court order;
                (iii) have been referred by a local health department; or
                (iv) have been placed in a state licensed private or public health care or child care facility as described in section 8(b) of this chapter;
in order to provide a student with an individualized education program that is the most suitable educational program available.
    (b) If a school corporation that is a transferee corporation enters into an agreement as described in subsection (a), the school corporation shall pay to the nonprofit corporation an amount agreed upon from the transfer tuition of the student. The amount agreed upon may not exceed the transfer tuition costs that otherwise would be payable to the transferee corporation.
    (c) If a school corporation that is a transferor corporation enters into an agreement as described in subsection (a), the school corporation shall pay to the nonprofit corporation an amount agreed upon, which may not exceed the transfer tuition costs that otherwise would be payable to a transferee school corporation.
    Sec. 12. (a) If a student is transferred under section 5 of this chapter from a school corporation in Indiana to a public school

corporation in another state, the transferor corporation shall pay the transferee corporation the full tuition fee charged by the transferee corporation. However, the amount of the full tuition fee may not exceed the amount charged by the transferor corporation for the same class of school, or if the school does not have the same classification, the amount may not exceed the amount charged by the geographically nearest school corporation in Indiana that has the same classification.
    (b) If a child is:
        (1) placed by a court order in an out-of-state institution or other facility; and
        (2) provided all educational programs and services by a public school corporation in the state where the child is placed, whether at the facility, the public school, or another location;
the county office of family and children for the county placing the child shall pay from the county family and children's fund to the public school corporation in which the child is enrolled the amount of transfer tuition specified in subsection (c).
    (c) The transfer tuition for which a county office is obligated under subsection (b) is equal to the following:
        (1) The amount under a written agreement among the county office, the institution or other facility, and the governing body of the public school corporation in the other state that specifies the amount and method of computing transfer tuition.
        (2) The full tuition fee charged by the transferee corporation, if subdivision (1) does not apply. However, the amount of the full tuition fee must not exceed the amount charged by the transferor corporation for the same class of school, or if the school does not have the same classification, the amount must not exceed the amount charged by the geographically nearest school corporation in Indiana that has the same classification.
    (d) If a child is:
        (1) placed by a court order in an out-of-state institution or other facility; and
        (2) provided:
            (A) onsite educational programs and services either through the facility's employees or by contract with another person or organization that is not a public school corporation; or
            (B) educational programs and services by a nonpublic school;


the county office of family and children for the county placing the child shall pay from the county family and children's fund in an amount and in the manner specified in a written agreement between the county office and the institution or other facility.
    (e) An agreement described in subsection (c) or (d) is subject to the approval of the director of the division of family and children. However, for purposes of IC 4-13-2, the agreement shall not be treated as a contract.
    Sec. 13. (a) As used in this section, the following terms have the following meanings:
        (1) "ADM" means the following:
            (A) For purposes of allocating to a transfer student state distributions under IC 21-1-30 (primetime), "ADM" as computed under IC 21-1-30-2.
            (B) For all other purposes, "ADM" as set forth in IC 21-3-1.6-1.1.
        (2) "Class of school" refers to a classification of each school or program in the transferee corporation by the grades or special programs taught at the school. Generally, these classifications are denominated as kindergarten, elementary school, middle school or junior high school, high school, and special schools or classes, such as schools or classes for special education, vocational training, or career education.
        (3) "Special equipment" means equipment that during a school year:
            (A) is used only when a child with disabilities is attending school;
            (B) is not used to transport a child to or from a place where the child is attending school;
            (C) is necessary for the education of each child with disabilities that uses the equipment, as determined under the individualized education program for the child; and
            (D) is not used for or by any child who is not a child with disabilities.
        (4) "Student enrollment" means the following:
            (A) The total number of students in kindergarten through grade 12 who are enrolled in a transferee school corporation on a date determined by the state board.
            (B) The total number of students enrolled in a class of school in a transferee school corporation on a date determined by the state board.
        However, a kindergarten student shall be counted under

clauses (A) and (B) as one-half (1/2) student.         The state board may select a different date for counts under this subdivision. However, the same date shall be used for all school corporations making a count for the same class of school.
    (b) Each transferee corporation is entitled to receive for each school year on account of each transferred student, except a student transferred under section 6 of this chapter, transfer tuition from the transferor corporation or the state as provided in this chapter. Transfer tuition equals the amount determined under STEP THREE of the following formula:
        STEP ONE: Allocate to each transfer student the capital expenditures for any special equipment used by the transfer student and a proportionate share of the operating costs incurred by the transferee school for the class of school where the transfer student is enrolled.
        STEP TWO: If the transferee school included the transfer student in the transferee school's ADM for a school year, allocate to the transfer student a proportionate share of the following general fund revenues of the transferee school for, except as provided in clause (C), the calendar year in which the school year ends:
            (A) The following state distributions that are computed in any part using ADM or other student count in which the student is included:
                (i) Primetime grant under IC 21-1-30.
                (ii) Tuition support for basic programs.
                (iii) Enrollment growth grant under IC 21-3-1.7-9.5.
                (iv) At-risk grant under IC 21-3-1.7-9.7.
                (v) Academic honors diploma award under IC 21-3-1.7-9.8.
                (vi) Vocational education grant under IC 21-3-12.
                (vii) Special education grant under IC 21-3-2.1.
                (viii) The portion of the ADA flat grant that is available for the payment of general operating expenses under IC 21-3-4.5-2(b)(1).
            (B) Property tax levies.
            (C) Excise tax revenue (as defined in IC 21-3-1.7-2) received for deposit in the calendar year in which the school year begins.
            (D) Allocations to the transferee school under IC 6-3.5.
        STEP THREE: Determine the greater of:
            (A) zero (0); or


            (B) the result of subtracting the STEP TWO amount from the STEP ONE amount.
If a child is placed in an institution or facility in Indiana under a court order, the institution or facility shall charge the county office of the county of the student's legal settlement under IC 12-19-7 for the use of the space within the institution or facility (commonly called capital costs) that is used to provide educational services to the child based upon a prorated per student cost.
    (c) Operating costs shall be determined for each class of school where a transfer student is enrolled. The operating cost for each class of school is based on the total expenditures of the transferee corporation for the class of school from its general fund expenditures as specified in the classified budget forms prescribed by the state board of accounts. This calculation excludes:
        (1) capital outlay;
        (2) debt service;
        (3) costs of transportation;
        (4) salaries of board members;
        (5) contracted service for legal expenses; and
        (6) any expenditure that is made out of the general fund from extracurricular account receipts;
for the school year.
    (d) The capital cost of special equipment for a school year is equal to:
        (1) the cost of the special equipment; divided by
        (2) the product of:
            (A) the useful life of the special equipment, as determined under the rules adopted by the state board; multiplied by
            (B) the number of students using the special equipment during at least part of the school year.
    (e) When an item of expense or cost described in subsection (c) cannot be allocated to a class of school, it shall be prorated to all classes of schools on the basis of the student enrollment of each class in the transferee corporation compared with the total student enrollment in the school corporation.
    (f) Operating costs shall be allocated to a transfer student for each school year by dividing:
        (1) the transferee school corporation's operating costs for the class of school in which the transfer student is enrolled; by
        (2) the student enrollment of the class of school in which the transfer student is enrolled.
When a transferred student is enrolled in a transferee corporation

for less than the full school year of student attendance, the transfer tuition shall be calculated by the part of the school year for which the transferred student is enrolled. A school year of student attendance consists of the number of days school is in session for student attendance. A student, regardless of the student's attendance, is enrolled in a transferee school unless the student is no longer entitled to be transferred because of a change of residence, the student has been excluded or expelled from school for the balance of the school year or for an indefinite period, or the student has been confirmed to have withdrawn from school. The transferor and the transferee corporation may enter into written agreements concerning the amount of transfer tuition due in any school year. If an agreement cannot be reached, the amount shall be determined by the state board, and costs may be established, when in dispute, by the state board of accounts.
    (g) A transferee school shall allocate revenues described in subsection (b) STEP TWO to a transfer student by dividing:
        (1) the total amount of revenues received; by
        (2) the ADM of the transferee school for the school year that ends in the calendar year in which the revenues are received.
However, for state distributions under IC 21-1-30, IC 21-3-2.1, IC 21-3-12, or any other statute that computes the amount of a state distribution using less than the total ADM of the transferee school, the transferee school shall allocate the revenues to the transfer student by dividing the revenues that the transferee school is eligible to receive in a calendar year by the student count used to compute the state distribution.
    (h) Instead of the payments provided in subsection (b), the transferor corporation or state owing transfer tuition may enter into a long term contract with the transferee corporation governing the transfer of students. The contract may:
        (1) be entered into for a period of not more than five (5) years with an option to renew;
        (2) specify a maximum number of students to be transferred; and
        (3) fix a method for determining the amount of transfer tuition and the time of payment, which may be different from that provided in section 14 of this chapter.
    (i) If the school corporation can meet the requirements of IC 21-1-30-5, it may negotiate transfer tuition agreements with a neighboring school corporation that