February 21, 2007
SENATE BILL No. 548
DIGEST OF SB 548
(Updated February 20, 2007 12:10 pm - DI 113)
Citations Affected: IC 20-20; IC 20-24; IC 20-26; IC 20-35.
Synopsis: Charter schools. Provides that a charter school may receive
technology funds. Allows the employees of a charter school to
participate in a private pension or retirement benefit program. Provides
that a charter school may receive a grant for the operational expenses
of the first semester the charter school is in operation or to repay an
existing advance from the common school fund. Prohibits a school
corporation from making a covenant that unneeded real property may
not be sold to another educational institution. Provides that a charter
school may provide special education services for a preschool child
with a disability in the same manner as other public schools.
Effective: July 1, 2007.
January 23, 2007, read first time and referred to Committee on Education and Career
February 8, 2007, amended, reported favorably _ Do Pass; reassigned to Committee on
Tax and Fiscal Policy.
February 20, 2007, amended, reported favorably _ Do Pass.
February 21, 2007
First Regular Session 115th General Assembly (2007)
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between statutes enacted by the 2006 Regular Session of the General Assembly.
SENATE BILL No. 548
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 20-20-13-3; (07)SB0548.2.1. -->
SECTION 1. IC 20-20-13-3, AS ADDED BY P.L.218-2005,
SECTION 45, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: 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 Blind and Visually Impaired
established by IC 20-21-2-1,
and the Indiana School for the Deaf
established by IC 20-22-2-1, and a charter school established under
SOURCE: IC 20-24-6-7; (07)SB0548.2.2. -->
SECTION 2. IC 20-24-6-7, AS AMENDED BY P.L.2-2006,
SECTION 105, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 7. (a) A charter school
participate in any of the following:
(1) The Indiana state teachers' retirement fund in accordance with
(2) The public employees' retirement fund in accordance with
(3) Another employee pension or retirement fund.
(b) Except as provided in subsection (e), 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
(c) Except as provided in subsection (e), 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'
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.
(e) Charter school employees may participate in a private
pension or retirement program, if the organizer of the charter
school offers the opportunity to participate in the program.
SOURCE: IC 20-24-12; (07)SB0548.2.3. -->
SECTION 3. IC 20-24-12 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]:
Chapter 12. Charter School Grant Account
Sec. 1. As used in this chapter, "account" refers to the charter
school grant account established within the state general fund
under section 5 of this chapter.
Sec. 2. As used in this chapter, "charter school" refers to a
school established under this article.
Sec. 3. As used in this chapter, "grant" refers to a grant from
the account under this chapter.
Sec. 4. As used in this chapter, "operational costs" means costs
(other than construction costs) incurred by a charter school (other
than a conversion charter school) during the second six (6) months
of the calendar year in which the charter school begins its initial
Sec. 5. The charter school grant account is established within
the state general fund.
Sec. 6. The state board shall award grants to charter schools
from money appropriated from the account for that purpose by the
general assembly. The grants may be used:
(1) for operational costs; and
(2) to repay advances made under IC 20-49-7.
Sec. 7. A charter school that desires to obtain a grant must
submit an application to the state board on a form prescribed by
the state board after the state board consults with the department
and the budget agency to determine the amount of the grant.
Sec. 8. Priority of grants for operational costs must be on a basis
determined by the state board after consulting with the department
and the budget agency.
Sec. 9. The state board, after consulting with the department
and upon approval of the budget agency, shall establish the terms
of a grant before the date on which the grant is made.
Sec. 10. (a) The amount of a grant for operational costs may not
exceed the amount determined under STEP THREE of the
STEP ONE: Determine the product of:
(A) the charter school's enrollment reported under
IC 20-24-7-2(a); multiplied by
(B) the target revenue per ADM of the school corporation
in which the charter school is located, for any other
STEP TWO: Determine the quotient of:
(A) the STEP ONE amount; divided by
(B) two (2).
STEP THREE: Determine the product of:
(A) the STEP TWO amount; multiplied by
(B) one and fifteen-hundredths (1.15).
(b) A charter school that receives a grant for operational costs
under this section may not receive an advancement for operational
costs under IC 20-49-7.
Sec. 11. (a) The amount of a grant to repay an advance made
under IC 20-49-7 may not exceed the amount that a charter school
is required to repay to the charter school advancement account on
the date the charter school receives the grant.
(b) A charter school that receives a grant under this section
shall use the grant to repay the charter school's obligation to the
charter school account.
SOURCE: IC 20-26-7-1; (07)SB0548.2.4. -->
SECTION 4. IC 20-26-7-1, AS ADDED BY P.L.1-2005, SECTION
10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2007]: 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.
(c) A governing body may not make a covenant that prohibits
the sale of real property to another educational institution.
SOURCE: IC 20-35-4-9; (07)SB0548.2.5. -->
SECTION 5. IC 20-35-4-9, AS ADDED BY P.L.1-2005, SECTION
19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2007]: Sec. 9. (a) The budget agency and the division shall develop a
funding mechanism to provide preschool special education. Each
school corporation shall provide each preschool child with a disability
with an appropriate special education. However, this subsection is
applicable only if the general assembly appropriates state funds for
preschool special education.
(b) A school corporation may act:
(2) in a joint school services program with other school
corporations as described in section 1 of this chapter; or
(3) upon approval by the division, through contractual agreements
entered into between a school corporation and a qualified public
or private agency that serves preschool children with disabilities.
(c) The state board shall adopt rules under IC 4-22-2 governing the
(1) The extent to which a school corporation may contract with
another service provider as permitted under subsection (b).
(2) The nature of the contracts.
(3) The approval procedure required of the school corporation
under subsection (b).
(4) Other pertinent matters concerning these agreements.
(d) A charter school may provide appropriate special education
to a preschool child with a disability in the same manner as any
other public school.