February 25, 2005





SENATE BILL No. 397

_____


DIGEST OF SB 397 (Updated February 23, 2005 1:41 pm - DI 106)



Citations Affected: IC 20-1; IC 20-3; IC 20-4; IC 20-8.1; IC 20-9.1; IC 20-10.1; IC 33-33.

Synopsis: Various matters concerning education. Specifies that, if the governing bodies of two or more school corporations agree to cooperate and apportion the cost of vocational education schools or departments, the designated representatives of the school corporations constitute a board for the management of the schools or departments. Specifies the criminal intent necessary to commit crimes involving: (1) postsecondary proprietary educational institution accreditation; and (2) school bus use. Specifies that a principal and not the governing body of a school corporation submits information to the bureau of motor vehicles concerning: (1) an individual's ineligibility to be issued a driver's license or learner's permit; and (2) the invalidation of a license or permit. Repeals obsolete or superseded provisions, including provisions concerning purchase of textbooks, school taxing powers, school reorganization, school bonding, transportation of pupils, county schools, and annexation of territory. Makes conforming amendments. (The introduced version of this bill was prepared by the code revision commission.)

Effective: July 1, 2005.





Landske




    January 11, 2005, read first time and referred to Committee on Judiciary.
    February 24, 2005, amended, reported favorably _ Do Pass.






February 25, 2005

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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2004 Regular Session of the General Assembly.

SENATE BILL No. 397



    A BILL FOR AN ACT to amend the Indiana Code concerning education.

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

SOURCE: IC 20-1-18-7; (05)SB0397.1.1. -->     SECTION 1. IC 20-1-18-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. (a) Two (2) or more school corporations may cooperate to establish and maintain or supervise schools or departments for vocational education if the governing bodies of these school corporations agree to cooperate and apportion the cost of the schools or departments among the school corporations.
    (b) If the cooperating school corporations agree to establish and maintain or supervise the schools or departments under subsection (a), the heads of these designated representatives of the school corporations or their delegated representatives constitute a board for the management of the schools or departments. The board may adopt a plan of organization, administration, and support for the schools or departments. This plan, if approved by the Indiana state board of education, constitutes a binding contract between the cooperating school corporations.
    (c) The governing bodies of the cooperating school corporations

may cancel or annul this contract by the vote of a majority of these governing bodies and upon the approval of the Indiana state board of education. However, if a school corporation desires to withdraw a course offering from the cooperative agreement after:
        (1) attempting to withdraw the course offering under any withdrawal procedure authorized by the school corporation's cooperative agreement or by law; and
        (2) being denied the authority to withdraw the course offering;
the school corporation may appeal the denial to the Indiana state board of education. In the appeal a school corporation must submit a proposal requesting the withdrawal to the Indiana state board of education for approval. The proposal must describe how the school corporation intends to implement the particular vocational education course and must include a provision that provides for at least a two (2) year phase-out of the educational program or course offering from the cooperative agreement. Upon approval of the proposal by the Indiana state board of education, the school corporation may proceed with the school corporation's withdrawal of the course offering from the agreement and shall proceed under the proposal. This withdrawal procedure may not be construed to permit a school corporation to change any other terms of the contract under subsection (b) except those terms that require the school corporation to provide the particular course offering sought to be withdrawn.
    (d) The board described in subsection (b) may enter into an agreement to acquire sites, buildings, and equipment by lease or purchase that are suitable for these schools or departments. This authority extends to the acquisition of facilities available under IC 21-5-11.
    (e) This board may, by resolution adopted by a majority of the board, designate three (3) or more individuals from its membership to constitute an executive committee. To the extent provided in the resolution, this committee shall exercise the authority of the full board in the management of the school and shall submit a written summary of its actions to the full board at least semiannually.

SOURCE: IC 20-1-19-23; (05)SB0397.1.2. -->     SECTION 2. IC 20-1-19-23 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 23. (a) A person who knowingly, intentionally, or recklessly violates this chapter commits a Class B misdemeanor, except as provided in subsection (b) of this section.
    (b) A person who, with intent to defraud, represents himself or herself to be an agent of a postsecondary proprietary educational institution commits a Class C felony.
SOURCE: IC 20-3-14-7; (05)SB0397.1.3. -->     SECTION 3. IC 20-3-14-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. 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 shall be satisfied that the annexing resolution conforms substantially to the following standards:
    (a) The acquiring school corporation shall assume a portion of all installments of principal and interest on any indebtedness of the losing school corporation (other than current obligations or temporary borrowing) which 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 on the annexed territory. Such The portion shall consist consists of the following:
        (1) All such installments relating to any indebtedness incurred in connection with the acquisition or construction of any building located in the annexed territory.
        (2) A proportion of all such installments relating to any other indebtedness which 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 same is assessed for general taxation immediately prior to annexation.
    (b) The acquiring school corporation shall make the payments and assume the obligations provided for a school corporation acquiring territory and/or or building or buildings under IC 21-5-10.
    (c) Unless the losing school corporation shall consent to some other allocation, the portion of the special school and tuition fund moneys collected by the losing school corporation shall not be allocated in a greater amount to the acquiring school corporation than would be awarded if such two (2) corporations were respectively the original school corporation and the annexing school corporation within the meaning of IC 20-4-16, and the amount to be paid the losing corporation by the acquiring school corporation on account of the acquisition by the acquiring school corporation of a building in the annexed territory shall not be less than would be awarded if such two (2) school corporations were respectively the acquiring corporation and original school corporation within the meaning of IC 20-4-15.
    (d) (c) Where the annexed territory includes all of any losing school corporation, the acquiring school corporation shall acquire all of the property and assets of the losing school corporation without making payment of any nature for the same and shall assume all of the liabilities and obligations of the losing school corporation.
SOURCE: IC 20-4-1-3; (05)SB0397.1.4. -->     SECTION 4. IC 20-4-1-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3. As used in this chapter, unless context clearly requires otherwise, the following terms shall have the meanings set forth:
        (1) "School corporation" shall mean and include means all local school corporations in the state of Indiana.
        (2) "Reorganization of school corporations" shall mean and include means the formation of new school corporations, the alteration of the boundaries of established school corporations, and the dissolution of established school corporations, through or by means of:
            (a) (A) the uniting of two (2) or more established school corporations;
            (b) (B) the subdivision of one (1) or more school corporations;
            (c) (C) the transfer to any established school corporation of a part of the territory of one (1) or more school corporations, or the attachment thereto of all or any part of the territory of one (1) or more school corporations, or the transfer of said established school corporation; and
            (d) (D) any combination of the methods listed in subdivisions (a) clauses (A) through (c). (C).
        (3) "Community school corporation" shall mean means a school corporation proposed to be formed or formed under the provisions of this chapter and shall include a united school corporation as defined in this section.
        (4) "United school corporation" shall mean means a school corporation having territory in two (2) or more adjacent counties.
        (5) "Administrative unit" shall mean means a school corporation comprising all the area under a single system of local administration and under the control of a local board of education, board of school trustees, or board of school commissioners.
        (6) "Attendance unit" or "school unit" shall mean means the geographical and population area served by a single school, consisting of part, or all, of an administrative unit.
        (7) "County committee" or "committee" shall mean means the county committee for the reorganization of school corporations, provided for in section 5 through 14 13 of this chapter.
        (8) "State board" or "board" shall mean refers to the Indiana state board of education.
        (9) "State department" shall mean refers to the state department of education.
        (10) "State superintendent" shall mean refers to the state

superintendent of public instruction.
        (11) "County superintendent" shall mean refers to the county superintendent of schools.
        (12) "Party" includes any person, firm, limited liability company, corporation, association, or municipality interested in any proceedings under the provisions of this chapter.
        (13) "School aid bonds" shall mean means any bonds of a civil unit of government the proceeds of which were used for school purposes in any school corporation.

SOURCE: IC 20-4-4-7; (05)SB0397.1.5. -->     SECTION 5. IC 20-4-4-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. (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 the provisions of subdivision (b) shall be satisfied that the annexing resolution conforms substantially to the following standards:
        (1) The acquiring school corporation shall assume a portion of all installments of principal and interest on any indebtedness of the losing school corporation (other than current obligations or temporary borrowing) which 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 on the annexed territory. Such The portion shall consist consists of the following:
            (i) (A) All such installments relating to any indebtedness incurred in connection with the acquisition or construction of any building located in the annexed territory. and
            (ii) (B) A proportion of all such installments relating to any other indebtedness which 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 same is assessed for general taxation immediately prior to annexation.
        (2) The acquiring school corporation shall make the payments and assume the obligations provided for school corporation acquiring territory and/or building or buildings under IC 21-5-10.
        (3) Unless the losing school corporation shall consent to some other allocation: the portion of the general fund moneys collected by the losing school corporation shall not be allocated to the acquiring school corporation in a greater amount than would be awarded if such two (2) corporations were respectively the "original school corporation" and the "annexing school

corporation" within the meaning of IC 20-4-16, using the method therein provided for allocating the special school and tuition fund moneys.
    (b) Such standards shall not be applicable to the extent the losing and acquiring school corporations otherwise agree in a situation where all or a majority of the students in the annexed territory have been transferred from the losing to the acquiring school corporation for the five (5) school years immediately preceding the transfer. Such agreement, as between school corporations, shall not, however, prejudice the rights of bondholders or lessors whose rights as against the losing and acquiring school corporations shall, upon enforcement, be allocated between them in accordance with subsection (a)(1) and (2).

SOURCE: IC 20-4-5-25.5; (05)SB0397.1.6. -->     SECTION 6. IC 20-4-5-25.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 25.5. (a) This section provides an alternative method for a school corporation to reorganize 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 2 of this chapter.
        (2) A county school corporation organized under IC 20-4-8-2.
        (3) (2) A metropolitan school district organized under IC 20-4-8-12 or IC 20-4-8-24.
    (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 20-4-1-5.
            (B) Pursue a joint meeting of a county committee and the state board under IC 20-4-1-17.1.
        (2) The state board may waive the attainment of any standard required for reorganization as a community school corporation under this chapter.
SOURCE: IC 20-4-8-25; (05)SB0397.1.7. -->     SECTION 7. IC 20-4-8-25 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 25. 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 such corporation or district, under section 2, 12 or 24 of this chapter, the resolutions or petitions may specify when such school corporation or school district shall be created and come into existence, and such corporation or district shall then be

created and come into existence at the time provided in all such resolutions or petitions.

SOURCE: IC 20-4-57-7; (05)SB0397.1.8. -->     SECTION 8. IC 20-4-57-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. (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 fact finding 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 20-4-4-7. and IC 20-4-16-3.
            (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 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 8 of this chapter.
SOURCE: IC 20-8.1-5.1-26; (05)SB0397.1.9. -->     SECTION 9. IC 20-8.1-5.1-26 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 26. Before February 1 and before October 1 of each year, except when a hearing has been requested under IC 9-24-2-1(a)(4), the governing body of the school corporation a principal shall submit to the bureau of motor vehicles the pertinent information concerning an individual's ineligibility under IC 9-24-2-1 to be issued a driver's license or learner's permit, or concerning the invalidation of a license or permit under IC 9-24-2-4.
SOURCE: IC 20-8.1-7-11; (05)SB0397.1.10. -->     SECTION 10. IC 20-8.1-7-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 11. (a) Not later than sixty (60) days after the enrollment of children for the first time and when additional immunizations are required by statute or rule, each school shall file a written report with the state department of health and the local health department having jurisdiction. The report shall include the following:
        (1) A statement of the number of children who have demonstrated immunity against diphtheria, pertussis (whooping cough), tetanus, measles, rubella, poliomyelitis, mumps, and hepatitis B.
        (2) A statement of the number of children who have not demonstrated immunity against the illnesses listed in subdivision (1).
        (3) A statement of the number of children who have been found positive for sickle cell anemia and lead poisoning.
    (b) The state department of health and the local health department shall, for good cause shown that there exists a substantial threat to the health and safety of a student or the school community, be able to validate immunization reports by onsite reviews or examinations of nonidentifying immunization record data. This section does not independently authorize the state department of health, a local department of health, or an agent of the state or local department of health to have access to identifying medical or academic record data of individual students attending nonaccredited nonpublic schools.
    (c) A school shall file a report shall also be filed for each child who enrolls subsequent to the filing of the report for children who enrolled at the beginning of the school year. The state department of health shall have exclusive power to adopt rules for the administration of this section.
SOURCE: IC 20-9.1-5-22; (05)SB0397.1.11. -->     SECTION 11. IC 20-9.1-5-22 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 22. (a) Except as provided in subsection (b) or in another section of this article, a person who knowingly, intentionally, or recklessly violates chapter 2, 2.5,

3, 4, or 5 of this article commits a Class C misdemeanor.
    (b) A person who violates section 6.6 of this chapter commits a Class B infraction.

SOURCE: IC 20-10.1-11-10; (05)SB0397.1.12. -->     SECTION 12. IC 20-10.1-11-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 10. (a) Each governing body shall make requisition for the necessary textbooks for the students from the contracting publishers approved by the state board of education. The contracting publisher shall ship the books, within ninety (90) days, directly to these officials. On receipt of the books, each school corporation shall have charge and custody of all books consigned to it, receipting to the contracting publisher for them, and each governing body shall reimburse the contracting publisher the amount owed by the school corporation for these books from its general fund.
    (b) Each governing body shall purchase with its general fund money any current textbooks, from a resident student who presents them for sale on or before the beginning of the school term in which the books are to be used, at a price based on the original price to the corporation less a reasonable reduction for damage from usage.
    (c) The proper school authorities shall likewise purchase any stock of books which are to be used during any school year from any dealer whose business is located in the county in which the school corporation is located, and who was authorized by law to sell these books before March 1, 1935, at not to exceed the price paid by the dealer to the contracting publisher from whom these books were purchased.
SOURCE: IC 20-10.1-25.5-3; (05)SB0397.1.13. -->     SECTION 13. IC 20-10.1-25.5-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: 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 of public instruction.
        (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 utilization of information technology. None of

the members appointed under this subdivision may 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. No action of the council is valid unless approved by at least seven (7) nine (9) 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.

SOURCE: IC 33-33-53-5; (05)SB0397.1.14. -->     SECTION 14. IC 33-33-53-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 5. In accordance with rules adopted by the judges of the court under section 6 of this chapter, the presiding judge shall do the following:
        (1) Ensure that the court operates efficiently and judicially under rules adopted by the court.
        (2) Annually submit to the fiscal body of Monroe County a budget for the court, including amounts necessary for:
            (A) the operation of the circuit's probation department;
            (B) the defense of indigents; and
            (C) maintaining an adequate law library.
        (3) Make the appointments or selections required of a circuit or superior court judge under the following statutes:
            IC 8-4-21-2
            IC 11-12-2-2
            IC 16-22-2-4
            IC 16-22-2-11
            IC 16-22-7
            IC 20-4-1
            IC 20-4-8
            IC 20-4-15-2
            IC 20-5-20-4
            IC 20-5-23-1
            IC 20-14-10-10
            IC 21-5-11-8
            IC 21-5-12-8
            IC 36-9
            IC 36-10.
        (4) Make appointments or selections required of a circuit or superior court judge by any other statute, if the appointment or selection is not required of the court because of an action before the court.
SOURCE: IC 20-4-1-14; IC 20-4-1-28; IC 20-4-1-35; IC 20-4-1-36; IC 20-4-1-37; IC 20-4-1-38; IC 20-4-5-9; IC 20-4-5-10; IC 20-4-5-11; IC 20-4-8-2; IC 20-4-8-3; IC 20-4-8-4; IC 20-4-8-5; IC 20-4-8-6; IC 20-4-8-7; IC 20-4-8-8; IC 20-4-8-9; IC 20-4-8-10; IC 20-4-8-11; IC 20-4-8-27; IC 20-4-15-1; IC 20-4-15-2; IC 20-4-15-3; IC 20-4-15-4; IC 20-4-15-5; IC 20-4-15-6; IC 20-4-16-1; IC 20-4-16-2; IC 20-4-16- 3; IC 20-4-16-4; IC 20-4-16-5; IC 20-4-16-6. ; (05)SB0397.1.15. -->     SECTION 15. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2005]: IC 20-4-1-14; IC 20-4-1-28; IC 20-4-1-35; IC 20-4-1-36; IC 20-4-1-37; IC 20-4-1-38; IC 20-4-5-9; IC 20-4-5-10; IC 20-4-5-11; IC 20-4-8-2; IC 20-4-8-3; IC 20-4-8-4; IC 20-4-8-5; IC 20-4-8-6; IC 20-4-8-7; IC 20-4-8-8; IC 20-4-8-9; IC 20-4-8-10; IC 20-4-8-11; IC 20-4-8-27; IC 20-4-15-1; IC 20-4-15-2; IC 20-4-15-3; IC 20-4-15-4; IC 20-4-15-5; IC 20-4-15-6; IC 20-4-16-1; IC 20-4-16-2; IC 20-4-16-3; IC 20-4-16-4; IC 20-4-16-5; IC 20-4-16-6.