SENATE BILL No. 496
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-26-7-1; IC 20-31.
Synopsis: Parental initiatives for school reorganization. Requires a
school corporation to sell surplus real property to another educational
institution if the educational institution is the highest bidder. Requires
the state board of education to create a school performance category of
pending reorganization. Provides that parents of a school that is in the
third or subsequent year of placement in the lowest performance
category may petition to reorganize the school by: (1) closing the
school and transferring the students to a higher performing school in
the same school corporation; (2) reorganizing the school as a charter
school; or (3) providing tuition payments for students who wish to
transfer from the school to another school corporation or a nonpublic
school. Requires the governing body of the school corporation to carry
out the reorganization if the parents of at least 51% of the students in
the school sign the petition. Requires the department of education to
place such a school in the pending reorganization performance
category. Provides that once a school has been reorganized, another
petition for reorganization may not be submitted for at least five years
after the school year in which the reorganization takes place.
Effective: July 1, 2011.
January 13, 2011, read first time and referred to Committee on Education and Career
First Regular Session 117th General Assembly (2011)
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between statutes enacted by the 2010 Regular Session of the General Assembly.
SENATE BILL No. 496
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 20-26-7-1; (11)IN0496.1.1. -->
SECTION 1. IC 20-26-7-1, AS AMENDED BY P.L.234-2007,
SECTION 227, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: 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; and
(2) shall sell real property under this section to another
educational institution if the educational institution is the
SOURCE: IC 20-31-8-3; (11)IN0496.1.2. -->
SECTION 2. IC 20-31-8-3, AS ADDED BY P.L.1-2005, SECTION
15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 3. The state board shall establish a number of categories or
designations of school improvement based on the improvement that a
school makes in performance of the measures determined by the board
with the advice of the education roundtable. The categories or
(1) reflect various levels of improvement; and
(2) include a category or designation that indicates a school
has a reorganization under IC 20-31-12 pending.
SOURCE: IC 20-31-12; (11)IN0496.1.3. -->
SECTION 3. IC 20-31-12 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]:
Chapter 12. Parental Initiatives for School Reorganization
Sec. 1. This chapter applies if, in the third or a subsequent year
after initial placement in the lowest category or designation under
IC 20-31-9, a school remains in the lowest category or designation.
Sec. 2. As used in this chapter, "designated school" refers to a
school described in section 1 of this chapter.
Sec. 3. As used in this chapter, "household" means a student
who attends a designated school and a parent of the student.
Sec. 4. The parents of students who attend a designated school
may petition the governing body to reorganize the designated
school under this chapter using one (1) of the following methods:
(1) Closing the designated school and transferring the
students to a higher performing school within the same school
(2) Restructuring the designated school as a charter school
under IC 20-24.
(3) Providing tuition payments for students from the
designated school who wish to transfer from the designated
school to a public school in another school corporation or a
Sec. 5. The following apply to a petition under section 4 of this
(1) The petition must state which reorganization option under
section 4 of this chapter the petitioners seek.
(2) The petition may be signed only by a parent in a household
and by only one (1) parent.
(3) A parent in a household may sign the petition the number
of times that equals the number of students who reside in the
household and attend the designated school.
(4) Each signature must include the signer's printed name and
(5) A completed petition must be submitted to the governing
Sec. 6. (a) After the governing body receives a completed
petition, the governing body shall deliver the petition to the
principal of the designated school. The principal shall:
(A) each signature as being that of a parent in a household;
(B) that the number of times an adult member signed the
petition does not exceed the number of students in the
household who attend the designated school; and
(2) return the verified petition to the governing body not later
than fifteen (15) days after receiving the petition.
(b) If a petition that has been verified under subsection (a)
contains a number of signatures equal to at least fifty-one percent
(51%) of the number of students in the designated school, the
governing body shall carry out the reorganization option sought in
(c) If a petition is verified and returned to the governing body
after June 30 and before January 1, the reorganization set forth in
the petition must be carried out beginning in the school year next
following the date on which the petition was returned to the
governing body. If a petition is verified and returned to the
governing body after December 31 and before July 1, the
reorganization set forth in the petition must be carried out in the
school year following the school year next following the date on
which the petition was returned to the governing body.
Sec. 7. (a) This section applies to a reorganization that
restructures a designated school as a charter school under
(b) The governing body of the school corporation in which the
designated school is located shall serve as the sponsor for the
charter school, unless the organizers desire a different sponsor.
Sec. 8. (a) This section applies to a reorganization that provides
for tuition payments for students who wish to transfer from the
(b) The department shall administer the tuition payments
required under this chapter.
Sec. 9. After a petition for reorganization of a designated school
has been verified under section 6 of this chapter, the department:
(1) shall remove the designated school from the lowest
performance category or designation and place the designated
school into a category or designation of pending
(2) may not place the designated school into a performance
category or designation until the school year that next follows
the school year in which the reorganization takes place.
Sec. 10. After a designated school has been reorganized, a
petition for the reorganization of the designated school under this
chapter may not be submitted to the governing body for at least
five (5) years after the school year in which the reorganization