February 19, 2013





HOUSE BILL No. 1342

_____


DIGEST OF HB 1342 (Updated February 19, 2013 12:43 pm - DI 71)



Citations Affected: IC 20-18; IC 20-43; IC 20-51; noncode.

Synopsis: Choice scholarship program administration. Provides that the office of management and budget administers the choice scholarship program. (Under current law, the program is administered by the department of education.)

Effective: Upon passage; July 1, 2013.





Behning




    January 17, 2013, read first time and referred to Committee on Education.
    February 19, 2013, amended, reported _ Do Pass.






February 19, 2013

First Regular Session 118th General Assembly (2013)


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.
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HOUSE BILL No. 1342



    A BILL FOR AN ACT to amend the Indiana Code concerning education and to make an appropriation.

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

SOURCE: IC 20-18-2-12.5; (13)HB1342.1.1. -->     SECTION 1. IC 20-18-2-12.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12.5. "OMB" refers to the office of management and budget established by IC 4-3-22-3.
SOURCE: IC 20-43-1-1; (13)HB1342.1.2. -->     SECTION 2. IC 20-43-1-1, AS AMENDED BY P.L.144-2012, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. This article expires July 1, 2013. July 1, 2015.
SOURCE: IC 20-43-2-1; (13)HB1342.1.3. -->     SECTION 3. IC 20-43-2-1, AS AMENDED BY P.L.146-2008, SECTION 481, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. The department shall distribute the amount appropriated by the general assembly for distribution as state tuition support in accordance with this article. The department shall distribute to the OMB the amount necessary for the OMB to make distributions under IC 20-51-4. If the appropriations for distribution as state tuition support are more than required under this article, any excess shall revert to the state general fund. The appropriations for state tuition support shall be made each calendar

year under a schedule set by the budget agency and approved by the governor. However, the schedule must provide:
        (1) for at least twelve (12) payments;
        (2) that one (1) payment shall be made at least every forty (40) days; and
        (3) the total of the payments in each calendar year must equal the amount required under this article.

SOURCE: IC 20-51-4-0.5; (13)HB1342.1.4. -->     SECTION 4. IC 20-51-4-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. After June 30, 2013, the OMB shall administer this chapter.
SOURCE: IC 20-51-4-1; (13)HB1342.1.5. -->     SECTION 5. IC 20-51-4-1, AS ADDED BY P.L.92-2011, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) Except as provided under subsections (b) through (h), it is the intent of the general assembly to honor the autonomy of nonpublic schools that choose to become eligible schools under this chapter. A nonpublic eligible school is not an agent of the state or federal government, and therefore:
        (1) the department OMB or any other state agency may not in any way regulate the educational program of a nonpublic eligible school that accepts a choice scholarship under this chapter, including the regulation of curriculum content, religious instruction or activities, classroom teaching, teacher and staff hiring requirements, and other activities carried out by the eligible school;
        (2) the creation of the choice scholarship program does not expand the regulatory authority of the state, the state's officers, or a school corporation to impose additional regulation of nonpublic schools beyond those necessary to enforce the requirements of the choice scholarship program in place on July 1, 2011; and
        (3) a nonpublic eligible school shall be given the freedom to provide for the educational needs of students without governmental control.
    (b) This section applies to the following writings, documents, and records:
        (1) The Constitution of the United States.
        (2) The national motto.
        (3) The national anthem.
        (4) The Pledge of Allegiance.
        (5) The Constitution of the State of Indiana.
        (6) The Declaration of Independence.
        (7) The Mayflower Compact.
        (8) The Federalist Papers.
        (9) "Common Sense" by Thomas Paine.
        (10) The writings, speeches, documents, and proclamations of the founding fathers and presidents of the United States.
        (11) United States Supreme Court decisions.
        (12) Executive orders of the presidents of the United States.
        (13) Frederick Douglas' Speech at Rochester, New York, on July 5, 1852, entitled "What to a Slave is the Fourth of July?".
        (14) Appeal by David Walker.
        (15) Chief Seattle's letter to the United States government in 1852 in response to the United States government's inquiry regarding the purchase of tribal lands.
    (c) An eligible school may allow a principal or teacher in the eligible school to read or post in the school building or classroom or at a school event any excerpt or part of a writing, document, or record listed in subsection (b).
    (d) An eligible school may not permit the content based censorship of American history or heritage based on religious references in a writing, document, or record listed in subsection (b).
    (e) A library, a media center, or an equivalent facility that an eligible school maintains for student use must contain in the facility's permanent collection at least one (1) copy of each writing or document listed in subsection (b)(1) through (b)(9).
    (f) An eligible school shall do the following:
        (1) Allow a student to include a reference to a writing, document, or record listed in subsection (b) in a report or other work product.
        (2) May not punish the student in any way, including a reduction in grade, for using the reference.
        (3) Display the United States flag in each classroom.
        (4) Provide a daily opportunity for students to voluntarily recite the Pledge of Allegiance in each classroom or on school grounds. A student is exempt from participation in the Pledge of Allegiance and may not be required to participate in the Pledge of Allegiance if:
            (A) the student chooses to not participate; or
            (B) the student's parent chooses to have the student not participate.
        (5) Provide instruction on the constitutions of:
            (A) Indiana; and
            (B) the United States.
        (6) For an eligible school that enrolls students in grades 6 through 12, provide within the two (2) weeks preceding a general election

five (5) full recitation periods of class discussion concerning:
            (A) the system of government in Indiana and in the United States;
            (B) methods of voting;
            (C) party structures;
            (D) election laws; and
            (E) the responsibilities of citizen participation in government and in elections.
        (7) Require that each teacher employed by the eligible school present instruction with special emphasis on:
            (A) honesty;
            (B) morality;
            (C) courtesy;
            (D) obedience to law;
            (E) respect for the national flag and the Constitution of the State of Indiana and the Constitution of the United States;
            (F) respect for parents and the home;
            (G) the dignity and necessity of honest labor; and
            (H) other lessons of a steadying influence that tend to promote and develop an upright and desirable citizenry.
        (8) Provide good citizenship instruction that stresses the nature and importance of the following:
            (A) Being honest and truthful.
            (B) Respecting authority.
            (C) Respecting the property of others.
            (D) Always doing the student's personal best.
            (E) Not stealing.
            (F) Possessing the skills (including methods of conflict resolution) necessary to live peaceably in society and not resorting to violence to settle disputes.
            (G) Taking personal responsibility for obligations to family and community.
            (H) Taking personal responsibility for earning a livelihood.
            (I) Treating others the way the student would want to be treated.
            (J) Respecting the national flag, the Constitution of the United States, and the Constitution of the State of Indiana.
            (K) Respecting the student's parents and home.
            (L) Respecting the student's self.
            (M) Respecting the rights of others to have their own views and religious beliefs.
        (9) Provide instruction in the following studies:


            (A) Language arts, including:
                (i) English;
                (ii) grammar;
                (iii) composition;
                (iv) speech; and
                (v) second languages.
            (B) Mathematics.
            (C) Social studies and citizenship, including the:
                (i) constitutions;
                (ii) governmental systems; and
                (iii) histories;
            of Indiana and the United States, including a study of the Holocaust and the role religious extremism played in the events of September 11, 2001, in each high school United States history course.
            (D) Sciences.
            (E) Fine arts, including music and art.
            (F) Health education, physical fitness, safety, and the effects of alcohol, tobacco, drugs, and other substances on the human body.
    (g) An eligible school, charter school, or public school shall not teach the violent overthrow of the government of the United States.
    (h) Nothing in this section shall be construed to limit the requirements of IC 20-30-5.
SOURCE: IC 20-51-4-2; (13)HB1342.1.6. -->     SECTION 6. IC 20-51-4-2, AS ADDED BY P.L.92-2011, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. (a) Subject to subsection (b), an eligible individual is entitled to a choice scholarship under this chapter for each school year beginning after June 30, 2011, that the eligible student enrolls in an eligible school.
    (b) The department OMB may not award more than:
        (1) seven thousand five hundred (7,500) choice scholarships for the school year beginning July 1, 2011, and ending June 30, 2012; and
        (2) fifteen thousand (15,000) choice scholarships for the school year beginning July 1, 2012, and ending June 30, 2013.
The department OMB shall establish the standards used to allocate choice scholarships among eligible students.
SOURCE: IC 20-51-4-3; (13)HB1342.1.7. -->     SECTION 7. IC 20-51-4-3, AS AMENDED BY P.L.6-2012, SECTION 144, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. (a) An eligible school may not discriminate on the basis of race, color, or national origin.
    (b) An eligible school shall abide by the school's written admission policy fairly and without discrimination with regard to students who:
        (1) apply for; or
        (2) are awarded;
scholarships under this chapter.
    (c) If the number of applicants for enrollment in an eligible school under a choice scholarship exceeds the number of choice scholarships available to the eligible school, the eligible school must draw at random in a public meeting the applications of applicants who are entitled to a choice scholarship from among the applicants who meet the requirements for admission to the eligible school.
    (d) The department OMB shall make random visits to at least five percent (5%) of eligible schools and charter schools to verify that the eligible school or charter school complies with the provisions of this chapter and the Constitutions of the state of Indiana and the United States.
    (e) Each eligible school, public school, and charter school shall grant the department OMB reasonable access to its premises, including access to the school's grounds, buildings, and property.
    (f) Each year the principal of each eligible school shall certify under penalties of perjury to the department OMB that the eligible school is complying with the requirements of this chapter. The department OMB shall develop a process for eligible schools to follow to make certifications.
SOURCE: IC 20-51-4-7; (13)HB1342.1.8. -->     SECTION 8. IC 20-51-4-7, AS ADDED BY P.L.92-2011, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) The department OMB shall administer this chapter.
    (b) The department OMB shall adopt rules under IC 4-22-2 to implement this chapter.
    (c) The department OMB may adopt emergency rules under IC 4-22-2-37.1 to implement this chapter.
SOURCE: IC 20-51-4-8; (13)HB1342.1.9. -->     SECTION 9. IC 20-51-4-8, AS ADDED BY P.L.92-2011, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. The department OMB may prescribe forms and methods for demonstrating eligibility for a choice scholarship under this chapter.
SOURCE: IC 20-51-4-9; (13)HB1342.1.10. -->     SECTION 10. IC 20-51-4-9, AS ADDED BY P.L.92-2011, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. (a) The department OMB shall enforce the following consequences for an eligible school that is nonpublic:
        (1) If the school is placed in either of the lowest two (2)

categories or designations under IC 20-31-8-3 for two (2) consecutive years, the department OMB shall suspend choice scholarship payments for one (1) year for new students who would otherwise use a choice scholarship to attend the school.
        (2) If the school is placed in either of the lowest two (2) categories or designations under IC 20-31-8-3 for three (3) consecutive years, the department OMB shall suspend choice scholarship payments for new students who would otherwise use a choice scholarship to attend the school until the school is placed in the middle category or higher category or designation, for two (2) consecutive years.
        (3) If the school is placed in the lowest category or designation under IC 20-31-8-3 for three (3) consecutive years, the department OMB shall suspend choice scholarship payments for new students who would otherwise use a choice scholarship to attend the school until the school is placed in the middle category or higher category or designation, for three (3) consecutive years.
        (4) Students who:
            (A) are currently enrolled at a school described in subdivision (1), (2), or (3); and
            (B) qualify for a choice scholarship for the upcoming school year;
        may continue to receive a choice scholarship at the school.
    (b) This section may not be construed to prevent a student enrolled in a school subject to this section from applying for a choice scholarship in the future at another participating school.

SOURCE: IC 20-51-4-10; (13)HB1342.1.11. -->     SECTION 11. IC 20-51-4-10, AS ADDED BY P.L.92-2011, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. (a) The department OMB may distribute any part of a choice scholarship to the eligible individual (or the parent of the eligible individual) for the purpose of paying the educational costs described in section 4(1) of this chapter. For the distribution to be valid, the distribution must be endorsed by both the eligible individual (or the parent of the eligible individual) and the eligible school providing educational services to the eligible individual.
    (b) The OMB shall provide in a timely manner to the department the information necessary for the department to distribute state tuition support under IC 20-43-2-1 necessary to make distributions under this chapter.

SOURCE: IC 20-51-4-12; (13)HB1342.1.12. -->     SECTION 12. IC 20-51-4-12 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12. (a) This section applies after

June 30, 2013.
    (b) The OMB shall provide any information that is necessary for the department to administer IC 20-43. If the department or the OMB have conflicting data as to whether an eligible student may be included in a school corporation's ADM under IC 20-43-4, the OMB, in consultation with the department, shall resolve the issue.
    (c) The OMB may request from the department, and the department shall provide, student data regarding a student's participation in the free and reduced lunch program in order for the OMB to verify student eligibility for an award under section 4 of this chapter. The data may not be used in a manner that would violate any federal or state privacy laws.

SOURCE: ; (13)HB1342.1.13. -->     SECTION 13. [EFFECTIVE JULY 1, 2013] (a) Rules that were adopted by the department of education under IC 20-51-4-7 or IC 20-51-4-8, both as amended by this act, prior to July 1, 2013, shall be treated as though the rules were adopted by the office of management and budget established by IC 4-3-22-3 until the office of management and budget adopts rules under IC 4-22-2 to implement IC 20-51-4, as amended by this act.
    (b) All powers and duties of the department of education relating to the administration of IC 20-51-4, as amended by this act, are transferred to the office of management and budget as established by IC 4-3-22-3.
    (c) This SECTION expires July 1, 2014.

SOURCE: ; (13)HB1342.1.14. -->     SECTION 14. [EFFECTIVE UPON PASSAGE] (a) The definitions in IC 20-51-1 apply throughout this SECTION.
    (b) After June 30, 2013, the administration of the choice scholarship program under IC 20-51-4, as amended by this act, shall be administered by the office of management and budget established by IC 4-3-22-3.
    (c) After June 30, 2013, the office of management and budget is responsible for collecting payments from an eligible student under IC 20-51-4-6 if an eligible student enrolls in an eligible institution for less than an entire school year.
    (d) The department of education shall provide any necessary support to transfer the duties and responsibilities of the department of education to the office of management and budget to administer IC 20-51-4 by July 1, 2013.

     (e) This SECTION expires January 1, 2014.
SOURCE: ; (13)HB1342.1.15. -->     SECTION 15. An emergency is declared for this act.