Citations Affected: IC 21-10.
Synopsis: School choice scholarship program. Establishes the school
choice scholarship program (program) for students whose household
incomes do not exceed 250% of the applicable household income to
participate in the national school lunch program. Requires the
department of education to adopt rules to administer the program.
Requires nonpublic schools that participate in the program to follow
certain laws and rules that apply to public schools. Annually
appropriates money from the state general fund for school choice
scholarships.
Effective: July 1, 2005.
January 13, 2005, read first time and referred to Committee on Education.
A BILL FOR AN ACT to amend the Indiana Code concerning
education finance and to make an appropriation.
than two hundred percent (200%) of the applicable household
income eligibility guidelines for receiving free or reduced
lunches under the national school lunch program, the lesser
of:
(A) 50% of state support; or
(B) the annual cost.
(4) For an eligible student whose household income exceeds
two hundred percent (200%) of the applicable household
income eligibility guidelines for receiving free or reduced
lunches under the national school lunch program, the lesser
of:
(A) 25% of state support; or
(B) the annual cost.
Sec. 4. A school choice scholarship may be used only for
educational purposes.
Sec. 5. A participating school may not give any part of a school
choice scholarship to an eligible student or the student's parent or
guardian.
Sec. 6. (a) This section applies to an eligible student who:
(1) qualifies for free or reduced lunches under the national
school lunch program; and
(2) receives a school choice scholarship under section 2 of this
chapter.
(b) An eligible student may attend a participating school at no
charge to the student.
Sec. 7. (a) This section applies to an eligible student who:
(1) does not qualify for free or reduced lunches under the
national school lunch program; and
(2) receives a school choice scholarship under section 2 of this
chapter.
(b) A participating school may charge an eligible student or an
eligible student's parent or guardian the difference between the
scholarship amount and the actual cost to educate the student,
including tuition and mandatory fees.
Sec. 8. The department shall pay the appropriate amount for
school choice scholarships to the participating school that each
eligible student attends.
Sec. 9. If the number of eligible students seeking to attend a
participating school exceeds the number of available spots at the
participating school, the participating school shall select eligible
students at random to attend the participating school. However,
the participating school may give preference to eligible students
who are siblings of students who:
(1) currently attend the participating school; or
(2) previously attended the participating school on a school
choice scholarship received under section 2 of this chapter.
Sec. 10. An eligible student who is unable to attend the
participating school of the eligible student's choice due to the
unavailability of spots under section 9 of this chapter may transfer
the eligible student's school choice scholarship to another
participating school.
Sec. 11. (a) An eligible student who attends a public
participating school on a school choice scholarship received under
section 2 of this chapter is counted in the public participating
school's ADM (as defined in IC 21-3-1.6-1.1(d)).
(b) The amount of an eligible student's school choice scholarship
is deducted from the public participating school's tuition support
under IC 21-3-1.7.
(c) If an eligible student's school choice scholarship is less than
the state support for the student, the surplus reverts to the state
general fund.
Sec. 12. A participating school shall provide reports at intervals
determined by the department to the parents or guardians of
eligible students detailing each eligible student's academic
progress.
Sec. 13. If an eligible student attends:
(1) a nonpublic participating school; or
(2) a public participating school outside the school
corporation in which the student has legal settlement;
the school corporation shall provide to the participating school a
complete copy of the student's school records, subject to applicable
federal and state laws.
Sec. 14. If a school corporation provides transportation for a
student who has legal settlement in the school corporation from the
student's legal settlement to a nonpublic school, the school
corporation shall provide transportation for an eligible student
who has legal settlement in the school corporation from the eligible
student's legal settlement to the participating school that the
eligible student chooses to attend.
Sec. 15. There is annually appropriated to the department from
the state general fund an amount sufficient for the department to
award school choice scholarships and otherwise administer this
chapter.
Chapter 4. Administration and Accountability of Nonpublic
Participating Schools
Sec. 1. This chapter applies to nonpublic participating schools.
Sec. 2. A nonpublic participating 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.
Sec. 3. The following statutes and rules and guidelines adopted
under the following statutes apply to a nonpublic participating
school:
(1) IC 5-11-1-9 (required audits by the state board of
accounts).
(2) IC 20-1-1.5-5 (unified accounting system).
(3) IC 20-5-2-7 and IC 20-6.1-3-7.1 (criminal history).
(4) IC 20-5-2-3 (subject to laws requiring regulation by state
agencies).
(5) IC 20-6.1-4-15 (void teacher contract when two (2)
contracts are signed).
(6) IC 20-6.1-6-11 (nondiscrimination for teacher marital
status).
(7) IC 20-6.1-6-13 (teacher freedom of association).
(8) IC 20-6.1-6-15 (school counselor immunity).
(9) IC 20-8.1-3 (compulsory school attendance).
(10) IC 20-8.1-4 (limitations on employment of children).
(11) IC 20-8.1-5.1-13, IC 20-8.1-5.1-15, and IC 20-8.1-5.1-15.5
(student due process and judicial review).
(12) IC 20-8.1-5.1-10 (firearms and deadly weapons).
(13) IC 20-8.1-7 and IC 20-8.1-8 (health and safety measures).
(14) IC 20-8.1-12 (reporting of student violations of law).
(15) IC 20-10.1-2-4 and IC 20-10.1-2-6 (patriotic
commemorative observances).
(16) IC 20-10.1-16, IC 20-10.1-17, or any other statute, rule,
or guideline related to standardized testing (assessment
programs, including remediation under the assessment
programs).
(17) IC 20-10.1-22.4 (parental access to education records).
(18) IC 20-10.2 (accountability for school performance and
improvement).
Sec. 4. If a nonpublic participating school receives at least fifty
thousand dollars ($50,000) in school choice scholarships for a
school year, the school shall do the following to demonstrate its
ability to repay state funds:
(1) Not later than September 1 of the school year, file a surety
bond with the department. The bond amount must equal or
exceed the total amount of school choice scholarships to be
paid to the school during the school year.
(2) Submit to the department financial information that
demonstrates the school has the ability to pay an amount
equal to the total amount of school choice scholarships to be
paid to the school during the school year, in addition to the
amount of the surety bond under subdivision (1).
Chapter 5. Responsibilities of the Department
Sec. 1. The department shall publish a list of participating
schools. The department shall mail the list to the last known
address of each eligible student. The department shall update the
list at least quarterly.
Sec. 2. The department shall prescribe an application that
eligible students may use to apply to participating schools. The
application must include proof of a student's eligibility. A
participating school may require additional information from an
applicant. An application under this section must be available at
locations determined by the department, including the Internet.
The department shall notify eligible students of the locations at
which the applications are available.
Sec. 3. (a) The department shall exclude a school from
participating in the program or revoke a school's status as a
participating school if the department determines that the school:
(1) misrepresents financial information;
(2) routinely fails to comply with applicable accountability
standards;
(3) gives any part of a school choice scholarship to an eligible
student or an eligible student's parent or guardian; or
(4) fails to repay in a timely manner to the state general fund
any school choice scholarship overpayments.
(b) If the department:
(1) excludes a school from participating; or
(2) revokes a school's participation;
in the program, the department shall notify eligible students who
attend or have applied to attend the school of the exclusion or
revocation as soon as possible.
Sec. 4. The department shall adopt rules under IC 4-22-2 to
implement this article, including the following:
(1) Eligibility and participation of nonpublic schools.
(2) Calculation and distribution of school choice scholarships
to eligible students.
(3) Application and approval process for school choice
scholarships.
(4) Deadlines and schedules for the following:
(A) Publishing lists of participating schools.
(B) Distributing and accepting applications for school
choice scholarships.
(C) Awarding and distributing school choice scholarships.