Introduced Version






SENATE BILL No. 484

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 20-26-7-1; IC 20-31-9.5.

Synopsis: School buildings. Provides that the lease between a charter school and a school corporation for a closed, unused, or unoccupied school building must include agreed upon terms and conditions relating to the operating costs associated with the school building. Provides that a closed, unused, or unoccupied school building may not be leased to a charter school in an amount that is less than the greater of: (1) $1; or (2) the amount that the school corporation must annually pay for debt or other obligations that the school corporation incurred for the school building before entering into the lease or for liens that attached to the school building before the school corporation entered into the lease. Provides that a school corporation may send notice to the department of education indicating that a closed, unused, or unoccupied school building may be sold or disposed of based on certain reasons. Provides that a charter school sponsor may request a hearing to show just cause as to why the closed, unused, or unoccupied building should not be sold or disposed of by the school corporation. Provides that the department shall hold an administrative hearing to determine whether the charter school sponsor has shown just cause as to why a school corporation should not sell or dispose of the school building. Provides that a special management team is responsible for the maintenance of the buildings and grounds of a turnaround academy. Provides that the contract into which the state board of education enters with a special management team after June 30, 2013, must include a date on which the operation of the school will be returned to the school corporation.

Effective: July 1, 2013.





Tallian




    January 14, 2013, read first time and referred to Committee on Education and Career Development.







Introduced

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.
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SENATE BILL No. 484



    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 20-26-7-1; (13)IN0484.1.1. -->     SECTION 1. IC 20-26-7-1, AS AMENDED BY P.L.91-2011, SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) Except as otherwise provided in this section, 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.
    (d) This subsection does not apply to a school building that on July

1, 2011, is leased or loaned by the school corporation that owns the school building to another entity. Except as provided in subsection (j), a governing body shall make available for lease or purchase to any charter school (as defined in IC 20-24-1-4) any school building owned by the school corporation that:
        (1) either:
            (A) is not used in whole or in part for classroom instruction at the time the charter school seeks to lease the building; or
            (B) appears on the list compiled by the department under subsection (e); and
        (2) was previously used for classroom instruction;
in order for the charter school to conduct classroom instruction.
    (e) Each governing body shall inform the department whenever a school building that was previously used for classroom instruction is closed, unused, or unoccupied. The department shall maintain a list of closed, unused, or unoccupied school buildings and make the list available on the department's Internet web site. Each school corporation shall provide a list of closed, unused, or unoccupied buildings to the department by the date set by the department. The department must update the list each year before August 31.
    (f) A school building that appears for the first time on the department's list under subsection (e) shall be designated as "Unavailable until (a date two (2) years after the school building first appears on the list)" if the governing body of the school corporation that owns the school building indicates the school building may be reclaimed during that period for classroom instruction, which must begin not later than one (1) year after the school building is reclaimed. If the school building remains unused for classroom instruction one (1) year after being reclaimed, the governing body shall place the school building on the department's list. A governing body may reclaim a school building only one (1) time under this subsection.
    (g) If a charter school wishes to use a school building on the list created under subsection (e), the charter school shall send a letter of intent to the department. The department shall notify the school corporation of the charter school's intent, and the school corporation that owns the school building shall lease the school building to the charter school for one dollar ($1) per year for as long as the charter school uses the school building for classroom instruction or for a term at the charter school's discretion. or The lease must include agreed upon terms and conditions relating to the operating costs associated with the school building. However, the yearly lease payment may not be less than the greater of:


        (1) one dollar ($1) per year; or
        (2) a yearly payment equal to the amount that the school corporation must annually pay for:
            (A) debt and other obligations incurred for; or
            (B) liens attached to;
        the school building by the school corporation before the lease.
Instead of leasing the school building to the charter school, the governing body may
sell the school building to the charter school for one dollar ($1). The charter school must begin to use the school building for classroom instruction not later than two (2) years after acquiring the school building. If the school building is not used for classroom instruction within two (2) years after acquiring the school building, the school building shall be placed on the department's list under subsection (e). If during the term of the lease the charter school closes or ceases using the school building for classroom instruction, the school building shall be placed on the department's list under subsection (e).
    (h) During the term of a lease under subsection (g), the charter school is responsible for the direct expenses related to the school building leased, including utilities, insurance, maintenance, repairs, and remodeling. The school corporation is responsible for any debt incurred for or liens that attached to the school building before the charter school leased the school building.
    (i) If a school building appears on the department's list under subsection (e) for at least forty-eight (48) months, the school corporation may sell or otherwise dispose of the school building in any manner the governing body considers appropriate.
     (j) Notwithstanding subsection (d), a governing body may provide notice to the department, on a form prescribed by the department, that the governing body intends to sell or otherwise dispose of a vacant or unused school building in accordance with IC 36-1-11. The governing body shall specify in the notice that:
        (1) the governing body intends to sell or lease the school building to a bona fide third party for consideration;
        (2) there is little likelihood that any charter school would have an interest in leasing or purchasing the school building because of the condition of the building or other extenuating circumstances; or
        (3) the governing body intends to sell, lease, or donate the school building to another governmental entity for public use if the governing body has territorial jurisdiction over the location of the school building.
If a charter school sponsor does not timely submit an objection under subsection (l), the governing body may sell or otherwise dispose of the unused or vacant school building in accordance with IC 36-1-11 after receiving written notification from the department indicating that the department has not received a timely request for a hearing from a charter school sponsor under subsection (l).
    (k) Upon receipt of a notice under subsection (j), the department shall maintain on the department's Internet web site:
        (1) a copy of the notice;
        (2) the date the notice was received by the department; and
        (3) the date by which the department must receive an objection to the notice from a charter school sponsor under subsection (l).
    (l) Not later than thirty (30) days after the date the department receives notice under subsection (j), a charter school sponsor may request a hearing under this subsection. If the department timely receives a request from a charter school sponsor under this subsection, the department shall appoint a hearing officer to act as the ultimate authority for the department and shall conduct a hearing in accordance with IC 4-21.5. At the hearing, the charter school sponsor must show just cause as to why the governing body should not be allowed to sell or dispose of a vacant school building under subsection (j). If, in the final order, the hearing officer determines that the charter school sponsor has shown just cause as to why the building should not be sold or disposed under subsection (j), the vacant or unused school building must be made available to a charter school as provided under subsection (d).
If the hearing officer determines in the final order that the charter school sponsor has not shown just cause under this subsection, the governing body may proceed or otherwise dispose of the vacant or unused school building in accordance with IC 36-1-11 in the manner specified in the notice.
SOURCE: IC 20-31-9.5-2; (13)IN0484.1.2. -->     SECTION 2. IC 20-31-9.5-2, AS ADDED BY P.L.229-2011, SECTION 190, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. (a) If the state board assigns a special management team under IC 20-31-9-4 to operate a school as a turnaround academy, for as long as the special management team operates the turnaround academy:
        (1) the special management team shall:
             (A) continue to use the school building, the accompanying real property, and the building's contents, equipment, and supplies; and
             (B) maintain and repair the buildings and grounds in a manner consistent with the maintenance and repair of the school corporation's other buildings and grounds; and
        (2) the school corporation shall continue to
            (A) provide transportation for students attending the turnaround academy at the same level of service the school corporation provided before the school became a turnaround academy. and
            (B) maintain and repair the buildings and grounds consistent with the maintenance and repair to the school corporation's other buildings and grounds.
        The school corporation shall consult with the special management team regarding these matters;
    (b) If the special management team contracts with a school corporation for goods or services, the school corporation may not charge the special management team more for the goods or services than the school corporation pays for the goods or services.
    (c) The special management team and the school corporation's board shall hold a joint public meeting at least two (2) times each year to discuss issues and progress concerning the turnaround academy.
SOURCE: IC 20-31-9.5-7; (13)IN0484.1.3. -->     SECTION 3. IC 20-31-9.5-7, AS ADDED BY P.L.160-2012, SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) If the state board assigns a special management team to a school, the state board shall enter into a contract with a special management team that includes the following provisions:
        (1) A requirement that the special management team and the governing body conduct a public meeting two (2) times each year to provide a report concerning:
            (A) student achievement of affected students; and
            (B) the condition of the school property and to address issues related to the school property.
        (2) A requirement that the student instruction must be provided by teachers licensed under IC 20-28-5.
         (3) For a contract entered into after June 30, 2013, a date on which the operation of the school will be returned to the school corporation.
    (b) Individuals employed by the special management team are entitled to participate in either:
        (1) the state teachers' retirement fund created by IC 5-10.4; or
        (2) the public employees' retirement fund created by IC 5-10.3.
    (c) Employees of a special management team are not required to organize and collectively bargain under IC 20-29-6.