HB 1381-2_ Filed 01/27/2006, 15:31 Day


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that House Bill 1381 be amended to read as follows:

    Delete the title and insert the following:
    A BILL FOR AN ACT to amend the Indiana Code concerning taxation and to make an appropriation.

SOURCE: Page 1, line 1; (06)MO138102.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 6-1.1-19-1.5; (06)MO138102.1. -->     "SECTION 1. IC 6-1.1-19-1.5, AS AMENDED BY P.L.246-2005, SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1.5. (a) The following definitions apply throughout this section and IC 21-3-1.7:
        (1) "Adjustment factor" means the adjustment factor determined by the department of local government finance for a school corporation under IC 6-1.1-34.
        (2) "Adjusted target property tax rate" means:
            (A) the school corporation's target general fund property tax rate determined under IC 21-3-1.7-6.8; multiplied by
            (B) the school corporation's adjustment factor.
        (3) "Previous year property tax rate" means the part of the school corporation's previous year general fund property tax rate imposed for the school corporation's tuition support levy (as defined in IC 21-3-1.7-5), but before the reductions in IC 21-3-1.7-5.
    (b) Except as otherwise provided in this chapter, a school corporation may not impose a general fund ad valorem property tax levy which exceeds the following:
        STEP ONE: Determine the result of:
            (A) the school corporation's adjusted target property tax rate;

minus
            (B) the school corporation's previous year property tax rate.
        STEP TWO: If the school corporation's adjusted target property tax rate:
            (A) exceeds the school corporation's previous year property tax rate, the result under this STEP for the school corporation is the school corporation's previous year property tax rate after increasing the rate by the lesser of:
                (i) the STEP ONE result; or
                (ii) three cents ($0.03); or
            (B) is less than the school corporation's previous year property tax rate, the result under this STEP is the school corporation's previous year property tax rate after reducing the rate by the lesser of:
                (i) the absolute value of the STEP ONE result; or
                (ii) eight cents ($0.08); or
            (C) equals the school corporation's previous year property tax rate, the result under this STEP is the school corporation's adjusted target property tax rate.
        STEP THREE: Divide the school corporation's total assessed value by one hundred dollars ($100).
        STEP FOUR: Multiply the STEP TWO result by the STEP THREE result.
        STEP FIVE: Determine the sum of the following:
            (A) The STEP FOUR result.
            (B) An amount equal to the annual decrease in federal aid to impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years.
            (C) The part of the maximum general fund levy for the year that equals the original amount of the levy by the school corporation to cover the costs of opening a new school facility or reopening an existing facility during the preceding year.
            (D) The amount determined under item (iv) of the following formula:
                (i) Determine the target revenue per ADM under IC 21-3-1.7-6.7 for each charter school that included at least one (1) student who has legal settlement in the school corporation in the charter school's current ADM.
                (ii) For each charter school, multiply the item (i) amount by the number of students who have legal settlement in the school corporation and who are included in the charter school's current ADM.
                (iii) Determine the sum of the item (ii) amounts.
                (iv) Multiply the item (iii) amount by thirty-five hundredths (0.35).
             For determinations before July 1, 2007, in determining the

number of students for purposes of this clause, each kindergarten pupil shall be counted as one-half (1/2) pupil. For determinations after June 30, 2007, in determining the number of students for purposes of this clause, each kindergarten pupil who does not attend a full-day kindergarten program shall be counted as one-half (1/2) pupil, and each kindergarten pupil who attends a full-day kindergarten program shall be counted as one (1) pupil.
    (c) For purposes of this section, "total assessed value" with respect to a school corporation means the total assessed value of all taxable property for ad valorem property taxes first due and payable during that year.
    (d) The department of local government finance shall annually establish an assessment ratio and adjustment factor for each school corporation to be used upon the review and recommendation of the budget committee. The information compiled, including background documentation, may not be used in a:
        (1) review of an assessment under IC 6-1.1-8, IC 6-1.1-13, IC 6-1.1-14, or IC 6-1.1-15;
        (2) petition for a correction of error under IC 6-1.1-15-12; or
        (3) petition for refund under IC 6-1.1-26.
    (e) All tax rates and tax levies computed under this section shall be computed by rounding in conformity with IC 21-3-1.7-7.".

SOURCE: Page 6, line 41; (06)MO138102.6. -->     Page 6, between lines 41 and 42, begin a new paragraph and insert:
    " Sec. 31. This chapter applies only to taxable years ending before January 1, 2011.
SOURCE: IC 6-7-1-12; (06)MO138102.3. -->     SECTION 3. IC 6-7-1-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 12. (a) The following taxes are imposed, and shall be collected and paid as provided in this chapter, upon the sale, exchange, bartering, furnishing, giving away, or otherwise disposing of cigarettes within the state of Indiana:
        (1) On cigarettes weighing not more than three (3) pounds per thousand (1,000), a tax at the rate of two and seven hundred seventy-five thousandths four and six-tenths of a cent ($0.02775) ($0.046) per individual cigarette.
        (2) On cigarettes weighing more than three (3) pounds per thousand (1,000), a tax at the rate of three and six thousand eight hundred eighty-one ten-thousandths six and one hundred fourteen thousandths of a cent ($0.036881) ($0.06114) per individual cigarette, except that if any cigarettes weighing more than three (3) pounds per thousand (1,000) shall be more than six and one-half (6 1/2) inches in length, they shall be taxable at the rate provided in subdivision (1), counting each two and three-fourths (2 3/4) inches (or fraction thereof) as a separate cigarette.
    (b) Upon all cigarette papers, wrappers, or tubes, made or prepared for the purpose of making cigarettes, which are sold, exchanged,

bartered, given away, or otherwise disposed of within the state of Indiana (other than to a manufacturer of cigarettes for use by him in the manufacture of cigarettes), the following taxes are imposed, and shall be collected and paid as provided in this chapter:
        (1) On fifty (50) papers or less, a tax of one-half cent ($0.005).
        (2) On more than fifty (50) papers but not more than one hundred (100) papers, a tax of one cent ($0.01).
        (3) On more than one hundred (100) papers, one-half cent ($0.005) for each fifty (50) papers or fractional part thereof.
        (4) On tubes, one cent ($0.01) for each fifty (50) tubes or fractional part thereof.

SOURCE: IC 6-7-1-17; (06)MO138102.4. -->     SECTION 4. IC 6-7-1-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 17. (a) Distributors who hold certificates and retailers shall be agents of the state in the collection of the taxes imposed by this chapter and the amount of the tax levied, assessed, and imposed by this chapter on cigarettes sold, exchanged, bartered, furnished, given away, or otherwise disposed of by distributors or to retailers. Distributors who hold certificates shall be agents of the department to affix the required stamps and shall be entitled to purchase the stamps from the department at a discount of one and two-tenths eight-tenths percent (1.2%) (0.8%) of the amount of the tax stamps purchased, as compensation for their labor and expense.
    (b) The department may permit distributors who hold certificates and who are admitted to do business in Indiana to pay for revenue stamps within thirty (30) days after the date of purchase. However, the privilege is extended upon the express condition that:
        (1) except as provided in subsection (c), a bond or letter of credit satisfactory to the department, in an amount not less than the sales price of the stamps, is filed with the department; and
        (2) proof of payment is made of all local property, state income, and excise taxes for which any such distributor may be liable. The bond or letter of credit, conditioned to secure payment for the stamps, shall be executed by the distributor as principal and by a corporation duly authorized to engage in business as a surety company or financial institution in Indiana.
    (c) If a distributor has at least five (5) consecutive years of good credit standing with the state, the distributor shall not be required to post a bond or letter of credit under subsection (b).
SOURCE: IC 6-7-1-28.1; (06)MO138102.5. -->     SECTION 5. IC 6-7-1-28.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 28.1. The taxes, registration fees, fines, or penalties collected under this chapter shall be deposited in the following manner:
        (1) Six and six-tenths Four and forty-four hundredths percent (6.6%) (4.44%) of the money shall be deposited in a fund to be known as the cigarette tax fund.
        (2) Ninety-four Sixty-three hundredths percent (0.94%) (0.63%) of the money shall be deposited in a fund to be known as the

mental health centers fund.
        (3) Eighty-three and ninety-seven Eighty-nine and twenty-two hundredths percent (83.97%) (89.22%) of the money shall be deposited in the state general fund.
        (4) Eight and forty-nine Five and seventy-one hundredths percent (8.49%) (5.71%) of the money shall be deposited into the pension relief fund established in IC 5-10.3-11.
The money in the cigarette tax fund, the mental health centers fund, or the pension relief fund at the end of a fiscal year does not revert to the state general fund. However, if in any fiscal year, the amount allocated to a fund under subdivision (1) or (2) is less than the amount received in fiscal year 1977, then that fund shall be credited with the difference between the amount allocated and the amount received in fiscal year 1977, and the allocation for the fiscal year to the fund under subdivision (3) shall be reduced by the amount of that difference.

SOURCE: IC 6-7-1-30.2; (06)MO138102.6. -->     SECTION 6. IC 6-7-1-30.2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 30.2. (a) There is annually appropriated to the state department of health one hundred ninety thousand dollars ($190,000) from the state general fund for the purpose of providing supplementary funding for the WIC (Women, Infants, and Children) program (42 U.S.C. 1786) in Indiana. The appropriation shall be administered by the nutrition division of the state department of health and shall be allocated to fund local WIC programs.
    (b) There is annually appropriated to the state department of health one hundred ninety thousand dollars ($190,000) from the state general fund for the purpose of providing supplementary funding for maternal and child health services. The appropriation shall be administered by the maternal and child health division of the state department of health. The funds appropriated under this subsection must be used to:
        (1) supplement federal Maternal and Child Health Services Block Grant funds provided under 42 U.S.C. 701 et seq. for the purpose of establishing and maintaining programs of pregnancy care in underserved areas of Indiana; and
        (2) provide funding for the hospital and medical expenses connected with the delivery of children whose parents are eligible for services that may be reimbursed with funds provided under the federal Maternal and Child Health Services Block Grant Program (42 U.S.C. 701 et seq.).
    (c) There is annually transferred to the school age child care project fund established under IC 12-17-12-7 from the state general fund five hundred fifty thousand one million one hundred thousand dollars ($550,000) ($1,100,000) for carrying out the purposes of the school age child care project.
SOURCE: IC 20-24-7-3; (06)MO138102.7. -->     SECTION 7. IC 20-24-7-3, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: 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.
         For distributions before July 1, 2007, in determining the number of students enrolled under clause (A)(i), each kindergarten student shall be counted as one-half (1/2) student. For distributions after June 30, 2007, in determining the number of students enrolled under clause (A)(i), each kindergarten student who does not attend a full-day kindergarten program shall be counted as one-half (1/2) student, and each kindergarten student who attends a full-day kindergarten program shall be counted as one (1) 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).
SOURCE: IC 20-26-11-13; (06)MO138102.8. -->     SECTION 8. IC 20-26-11-13, AS ADDED BY P.L.1-2005, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: 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, For determinations before July 1, 2007, a kindergarten student shall be counted under clauses (A) and (B) as one-half (1/2) student. For determinations after June 30, 2007, a kindergarten student who does not attend a full-day kindergarten program shall be counted under clauses (A) and (B) as one-half (1/2) student, and a kindergarten student who attends a full-day kindergarten program shall be counted

under clauses (A) and (B) as one (1) 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, IC 21-1-30-5.5, it may negotiate transfer tuition agreements with a neighboring school corporation that can accommodate additional students. Agreements under this section may:
        (1) be for one (1) year or longer; and
        (2) fix a method for determining the amount of transfer tuition or time of payment that is different from the method, amount, or time of payment that is provided in this section or section 14 of this chapter.
A school corporation may not transfer a student under this section without the prior approval of the child's parent.
    (j) If a school corporation experiences a net financial impact with regard to transfer tuition that is negative for a particular school year as described in IC 6-1.1-19-5.1, the school corporation may appeal for an excessive levy as provided under IC 6-1.1-19-5.1.

SOURCE: IC 20-26-11-20; (06)MO138102.9. -->     SECTION 9. IC 20-26-11-20, AS ADDED BY P.L.1-2005, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 20. (a) As used in sections 19 through 29 of this chapter, "ADM" refers to ADM as defined in IC 21-3-1.6-1.1.
    (b) As used in sections 19 through 29 of this chapter, "capital projects fund" refers to the school corporation fund set up under IC 21-2-15.
    (c) As used in sections 19 through 29 of this chapter, "class of school" refers to a classification of each school in the transferee corporation by the grades taught therein (generally denominated as elementary schools, middle schools or junior high schools, high schools, and special schools such as schools for special education, vocational training or career education). Elementary schools include schools containing kindergarten, but the following apply for purposes of this chapter:
         (1) For determinations before July 1, 2007, a kindergarten student shall be counted as one-half (1/2) student.
        (2) For determinations after June 30, 2007, a kindergarten student who does not attend a full-day kindergarten program shall be counted as one-half (1/2) student, and a kindergarten student who attends a full-day kindergarten program shall be counted as one (1) student.
    (d) As used in sections 19 through 29 of this chapter, "debt service fund" refers to the school corporation fund set up under IC 21-2-4.
    (e) As used in sections 19 through 29 of this chapter, "general fund" refers to the school corporation funds set up under IC 21-2-11.
    (f) As used in sections 19 through 29 of this chapter, "transferee corporation" means the school corporation receiving students under a court order described in section 19 of this chapter.
    (g) As used in sections 19 through 29 of this chapter, "transferor corporation" means the school corporation transferring students under a court order described in section 19 of this chapter.
    (h) As used in sections 19 through 29 of this chapter, "transferred student" means any student transferred under a court order described in section 19 of this chapter.
SOURCE: IC 21-1-30-2; (06)MO138102.10. -->     SECTION 10. IC 21-1-30-2, AS AMENDED BY P.L.246-2005, SECTION 180, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 2. For purposes of computation under this chapter, the following shall be used:
        (1) Before July 1, 2007, kindergarten pupils shall be counted as five-tenths (0.5), and all other pupils shall be counted as one (1). After June 30, 2007, kindergarten pupils who do not attend a full-day kindergarten program shall be counted as five-tenths (0.5), and all other pupils, including kindergarten pupils who attend a full-day kindergarten program, shall be counted as one (1).
        (2) The number of pupils shall be the number of pupils used in determining ADM, as defined by IC 21-3-1.6, for the current year.
        (3) The staff cost amount for a school corporation is sixty-nine thousand eight hundred eleven dollars ($69,811).
        (4) The guaranteed amount for a school corporation is the primetime allocation, before any penalty is assessed under this chapter, that the school corporation would have received under this chapter for the 1999 calendar year or the first year of

participation in the program, whichever is later.
        (5) The following apply to determine whether amounts received under this chapter have been devoted to reducing class size in kindergarten through grade 3 as required by section 3(b) of this chapter:
            (A) Except as permitted under section 5.5 of this chapter, only a licensed teacher who is an actual classroom teacher in a regular instructional program is counted as a teacher.
            (B) If a school corporation is granted approval under section 5.5 of this chapter, the school corporation may include as one-third (1/3) of a teacher each classroom instructional aide who meets qualifications and performs duties prescribed by the Indiana state board of education.
        (6) The complexity index is the index determined under IC 21-3-1.7-6.7.

SOURCE: IC 21-3-1.6-1.1; (06)MO138102.11. -->     SECTION 11. IC 21-3-1.6-1.1, AS AMENDED BY P.L.1-2005, SECTION 170, AND AS AMENDED BY P.L.246, SECTION 191, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1.1. As used in this chapter:
    (a) "School corporation" means any local public school corporation established under Indiana law. Except as otherwise indicated, the term includes a charter school.
    (b) "School year" means a year beginning July 1 and ending the next succeeding June 30.
    (c) "State distribution" due a school corporation means the amount of state funds to be distributed to a school corporation in any calendar year under this chapter.
    (d) "Average daily membership" or "ADM" of a school corporation means the number of eligible pupils enrolled in the school corporation or in a transferee corporation on a day to be fixed annually by the Indiana state board of education and beginning in the school year that ends in the 2005 calendar year, as subsequently adjusted not later than January 30 under the rules adopted by the state board of education. The initial day of the count shall fall within the first thirty (30) days of the school term. If, however, extreme patterns of student in-migration, illness, natural disaster, or other unusual conditions in a particular school corporation's enrollment on either the day fixed by the Indiana state board of education or on the subsequent adjustment date, cause the enrollment to be unrepresentative of the school corporation's enrollment throughout a school year, the Indiana state board of education may designate another day for determining the school corporation's enrollment. The Indiana state board of education shall monitor changes that occur after the fall count, in the number of students enrolled in programs for children with disabilities and shall, before December 2 of that same year and, beginning in the 2004 calendar year, before April 2 of the following calendar year, make an adjusted count of students enrolled in programs for children with disabilities. The superintendent

of public instruction shall certify the December adjusted count to the budget committee before February 5 of the following year and the April adjusted count not later than May 31 immediately after the date of the April adjusted count. In determining the ADM for distributions before July 1, 2007, each kindergarten pupil shall be counted as one-half (1/2) pupil. In determining the ADM for distributions after June 30, 2007, each kindergarten pupil shall be counted as one-half (1/2) pupil. Where a school corporation commences kindergarten in a school year, the ADM of the current and prior calendar years shall be adjusted to reflect the enrollment of the kindergarten pupils. In determining the ADM, each pupil enrolled in a public school and a nonpublic school is to be counted on a full-time equivalency basis as provided in section 1.2 of this chapter.
    (e) "Additional count" of a school corporation, or comparable language, means the aggregate of the additional counts of the school corporation for certain pupils as set out in section 3 of this chapter (repealed) and as determined at the times for calculating ADM. "Current additional count" means the initial computed additional count of the school corporation for the school year ending in the calendar year. "Prior year additional count" of a school corporation used in computing its state distribution in a calendar year means the initial computed additional count of the school corporation for the school year ending in the preceding calendar year.
    (f) For purposes of this subsection, "school corporation" does not include a charter school. "Adjusted assessed valuation" of any school corporation used in computing state distribution for a calendar year means the assessed valuation in the school corporation, adjusted as provided in IC 6-1.1-34. The amount of the valuation shall also be adjusted downward by the department of local government finance to the extent it consists of real or personal property owned by a railroad or other corporation under the jurisdiction of a federal court under the federal bankruptcy laws (11 U.S.C. 101 et seq.) if as a result of the corporation being involved in a bankruptcy proceeding the corporation is delinquent in payment of its Indiana real and personal property taxes for the year to which the valuation applies. If the railroad or other corporation in some subsequent calendar year makes payment of the delinquent taxes, then the state superintendent of public instruction shall prescribe adjustments in the distributions of state funds pursuant to this chapter as are thereafter to become due to a school corporation affected by the delinquency as will ensure that the school corporation will not have been unjustly enriched under the provisions of P.L.382-1987(ss). The amount of the valuation shall also be adjusted downward by the department of local government finance to the extent it consists of real or personal property described in IC 6-1.1-17-0.5(b).
    (g) "General fund" means a fund established under IC 21-2-11-2.
    (h) "Teacher" means every person who is required as a condition of employment by a school corporation to hold a teacher's license issued

or recognized by the state, except substitutes and any person paid entirely from federal funds.
    (i) For purposes of this subsection, "school corporation" does not include a charter school. "Teacher ratio" of a school corporation used in computing state distribution in any calendar year means the ratio assigned to the school corporation pursuant to section 2 of this chapter.
    (j) "Eligible pupil" means a pupil enrolled in a school corporation if:
        (1) the school corporation has the responsibility to educate the pupil in its public schools without the payment of tuition;
        (2) subject to subdivision (5), the school corporation has the responsibility to pay transfer tuition under IC 20-8.1-6.1, IC 20-8.1-6.1 (before its repeal) or IC 20-26-11, because the pupil is transferred for education to another school corporation (the "transferee corporation");
        (3) the pupil is enrolled in a school corporation as a transfer student under IC 20-8.1-6.1, IC 20-8.1-6.1 (before its repeal) or IC 20-26-11-6 or entitled to be counted for ADM or additional count purposes as a resident of the school corporation when attending its schools under any other applicable law or regulation;
        (4) the state is responsible for the payment of transfer tuition to the school corporation for the pupil under IC 20-8.1-6.1, IC 20-8.1-6.1 (before its repeal) or IC 20-26-11; or
        (5) all of the following apply:
            (A) The school corporation is a transferee corporation.
            (B) The pupil does not qualify as a qualified pupil in the transferee corporation under subdivision (3) or (4).
            (C) The transferee corporation's attendance area includes a state licensed private or public health care facility, child care facility, or foster family home where the pupil was placed:
                (i) by or with the consent of the division of family and children;
                (ii) by a court order;
                (iii) by a child placing agency licensed by the division of family and children; or
                (iv) by a parent or guardian under IC 20-8.1-6.1, IC 20-8.1-6.1 (before its repeal) or IC 20-26-11-8.
For purposes of IC 21-3-12, the term includes a student enrolled in a charter school.
    (k) "General fund budget" of a school corporation means the amount of the budget approved for a given year by the department of local government finance and used by the department of local government finance in certifying a school corporation's general fund tax levy and tax rate for the school corporation's general fund as provided for in IC 21-2-11. The term does not apply to a charter school.
    (l) "At risk index" means the following:
        (1) For a school corporation that is a not a charter school, the sum of:


            (A) the product of sixteen-hundredths (0.16) multiplied by the percentage of families in the school corporation with children who are less than eighteen (18) years of age and who have a family income below the federal income poverty level (as defined in IC 12-15-2-1);
            (B) the product of four-tenths (0.4) multiplied by the percentage of families in the school corporation with a single parent; and
            (C) the product of forty-four hundredths (0.44) multiplied by the percentage of the population in the school corporation who are at least twenty (20) years of age with less than a twelfth grade education.
        The data to be used in making the calculations under this subdivision must be the data from the 2000 federal decennial census.
        (2) For a charter school, the index determined under subdivision (1) for the school corporation in which the charter school is located.

    (m) (l) "ADM of the previous year" or "ADM of the prior year" used in computing a state distribution in a calendar year means the initial computed ADM for the school year ending in the preceding calendar year.
    (n) (m) "Current ADM" used in computing a state distribution in a calendar year means the initial computed ADM for the school year ending in the calendar year.
SOURCE: IC 21-3-2.5; (06)MO138102.12. -->     SECTION 12. IC 21-3-2.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]:
    Chapter 2.5. Full-Day Kindergarten Adjustment
    Sec. 1.
As used in this chapter, "ADM" has the meaning set forth in IC 21-3-1.6-1.1.
     Sec. 2. As used in this chapter, "student count law" refers to the following:
        (1) IC 6-1.1-19-1.5.
        (2) IC 20-24-7-3.
        (3) IC 20-26-11-13.
        (4) IC 20-26-11-20.
        (5) IC 21-1-30-2.
        (6) IC 21-3-1.6-1.1.
        (7) IC 21-3-3.1-2.1.
    Sec. 3. In applying student count laws and determining tax levies and state distributions after June 30, 2007, and notwithstanding any other law, an additional property tax levy that would otherwise result for a school corporation from counting each kindergarten pupil who attends a full-day kindergarten program as one (1) pupil or one (1) ADM under student count laws, rather than one-half (1/2) pupil or one-half (1/2) ADM, may not be imposed by the

school corporation. An amount equal to the additional property tax levy that would, except for application of this section, otherwise result shall be distributed to the school corporation from the state general fund as additional tuition support.
     Sec. 4. The amount necessary to make the additional tuition support distributions under section 3 of this chapter is appropriated from the state general fund.

SOURCE: IC 21-3-3.1-2.1; (06)MO138102.13. -->     SECTION 13. IC 21-3-3.1-2.1, AS AMENDED BY P.L.1-2005, SECTION 173, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 2.1. (a) For each calendar year, the allowable transportation distribution for each school corporation shall be based on the following formula:
        (1) The sum of two hundred seventy-five dollars ($275) for 1988, and two hundred eighty dollars ($280) for 1989 and thereafter, less the product of twenty dollars ($20) multiplied by the linear density of the school corporation.
        (2) This remainder is then multiplied by the number of the school corporation's eligible pupils.
        (3) From this product is subtracted the product of thirteen and sixty-seven hundredths cents ($0.1367) multiplied by each one hundred dollars ($100) of the school corporation's assessed value for taxes first due and payable in the preceding year.
    (b) Application of the formula in subsection (a) shall be governed and modified by the following provisions:
        (1) In calendar year 1976, and subsequent years, no school corporation that receives funds under this chapter shall receive less money than the school corporation was entitled to receive in calendar year 1975 under IC 21-3-3 (repealed December 31, 1975).
        (2) The linear density of the school corporation shall be determined by dividing the total number of eligible pupils by the round trip mileage of all vehicles used by or for the school corporation in transporting pupils.
        (3) Eligible pupils are those counted in ADM, enrolled in grades K-12, and transported more than one (1) mile or a preschool child who is transported for purposes of attending a special education program under IC 20-35-4-9, regardless of the distance transported.
        (4) The round trip mileage of a vehicle shall be the total miles traveled by the vehicle measured from the first point the vehicle picks up an eligible pupil to the last point at which an eligible pupil disembarks at school, multiplied by two (2).
        (5) For distributions before July 1, 2007, a kindergarten pupil, to the extent the pupil constitutes an eligible pupil, shall be counted as one-half (1/2) an eligible pupil. For distributions after June 30, 2007, a kindergarten pupil, to the extent the pupil constitutes an eligible pupil, shall be counted as one-half

(1/2) an eligible pupil for kindergarten pupils who do not attend a full-day kindergarten program and one (1) eligible pupil for kindergarten pupils who attend a full-day kindergarten program. A preschool pupil attending a special education program under IC 20-35-4-9 is counted as one (1) eligible pupil.
        (6) All the factors, applied in sections 1 and 3 of this chapter for determining the transportation distribution for any school corporation for any calendar year, shall be those existing in the school year ending in the preceding calendar year.
        (7) If subsection (a)(3) requires the use of the assessed valuation for a year in which a general reassessment becomes effective, the state shall make an adjustment in the assessed value used to neutralize the effect of the general reassessment. The adjustment applies to all subsequent years before another general reassessment becomes effective.

SOURCE: ; (06)MO138102.14. -->     SECTION 14. [EFFECTIVE JULY 1, 2006] (a) As used in this SECTION, "ADM" has the meaning set forth in IC 21-3-1.6-1.1.
    (b) The changes made by this act to the determination of ADM and other student counts in:
        (1) IC 6-1.1-19-1.5;
        (2) IC 20-24-7-3;
        (3) IC 20-26-11-13;
        (4) IC 20-26-11-20;
        (5) IC 21-1-30-2;
        (6) IC 21-3-1.6-1.1; and
        (7) IC 21-3-3.1-2.1;
all as amended by this act, apply for purposes of calculating distributions and payments made after June 30, 2007.

SOURCE: ; (06)MO138102.15. -->     SECTION 15. [EFFECTIVE JULY 1, 2006] IC 6-7-1-28.1, as amended by this act, applies to taxes, registration fees, fines, or penalties collected under IC 6-7-1 after June 30, 2006.
SOURCE: ; (06)MO138102.16. -->     SECTION 16. [EFFECTIVE JULY 1, 2006] (a) Notwithstanding P.L.246-2005, SECTION 8, there is appropriated to the division of family resources from the school age child care project fund one million one hundred thousand dollars ($1,100,000) for the state fiscal year beginning July 1, 2006, and ending June 30, 2007, to carry out the school age child care project.
    (b) This SECTION expires June 30, 2007.
".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1381 as printed January 27, 2006.)

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Representative Day


MO138102/DI 73     2006