Introduced Version






HOUSE BILL No. 1338

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 5-11-1-9; IC 20-24; IC 20-39-1; IC 20-43.

Synopsis: Charter school administration. Changes references to "sponsor" with "authorizer" in the charter school law. Provides that a public audit of a charter school or organizer of a charter school is limited to the use of the public money received by the organizer of a charter school or the charter school. Provides for the release to a charter school authorizer of certain covered records that are in the possession of the department of education, state board of education, or state charter school board and concern a charter school. Repeals a provision that requires the city-county council of Indianapolis to approve a charter school authorized by the mayor of Indianapolis. Repeals a provision that provides a governing body must obtain approval from the department of education (department) before granting a charter in which more than 50% of the students in the school corporation will attend the charter school. Removes a requirement for a teacher who does not possess a teacher's license to teach in the content area of the individual's bachelor's degree. Provides that a charter school's state tuition support shall be distributed by the budget agency rather than the department. Requires the budget agency to carry out a program to identify all federal funds that are available for charter schools. Requires the budget agency to pursue any matching federal funding for charter schools. Requires the department, with the approval of the state board of education (state board), to submit an annual report to the budget committee pertaining to virtual charter schools. Requires the budget agency to administer new charter school startup grants.
(Continued next page)

Effective: Upon passage; June 30, 2013; July 1, 2013; January 1, 2014.





Behning




    January 17, 2013, read first time and referred to Committee on Education.





Digest Continued

Repeals a requirement that a charter school sponsor must submit an annual report to the department. Provides that if an organizer of a charter school maintains an Internet web site for a charter school, the organizer shall publish the names of the charter school's governing body on the Internet web site. (Current law requires an organizer to publish the names of the governing body on the charter school's Internet web site.) Requires charter school organizers to adopt and accurately implement a single, unified accounting system for charter school organizers as prescribed by the state board and the state board of accounts. Repeals a provision pertaining to accounting and financial reporting of charter schools. Provides that for purposes of administering state tuition support, a charter school organizer is considered a school corporation. Requires the budget agency to administer the charter school facilities assistance program. Provides that a member of the state charter board may not be removed before the end of the member's full term by the member's appointing authority without cause. Provides that the state charter board must collectively possess strong experience and expertise in certain areas. Provides that the department's Internet web site must include a charter school annual report. Requires an authorizer to adopt national industry standards of quality charter school authorizing. Provides that the state board may review an authorizer to determine whether an authorizer is in compliance with the national industry standards. Provides that a charter school agreement must include a requirement that a charter school not remain in the lowest category or designation of school improvement in the third year after initial placement in the lowest category or designation. Requires the state board to provide an authorizer a hearing if the authorizer fails to close a charter school that does not meet the minimum standards in the charter agreement. Provides that the state board, after providing a hearing, may close the charter school at the end of the school year. (Current law provides that the charter school may be closed on a date set by the state board.) Provides that the state board, after providing a hearing, may reduce the administrative fees that an authorizer may receive. (Current law provides that the administrative fees may be reduced by up to 50% of the amount of the administrative fees.) Provides that if an authorizer does not correct deficiencies that prohibit an authorizer from opening new charter schools, the state board may, with a 2/3 vote, decommission the authorizer. Provides that the decommissioned authorizer's charter schools have 150 days to apply for approval from the state charter board. Provides for the voluntary relinquishment of authorizer status. Provides that a virtual charter school receives state tuition support in the same manner as a charter school. Removes a requirement that 60% of the students of a virtual charter school must have been included in the state's ADM count for the previous school year. Provides that a virtual charter school is eligible to receive new charter school startup grants. Provides that a virtual charter school is eligible to receive career and technical education grants. Provides that a virtual charter school is eligible to receive honors diploma awards. Makes conforming amendments.



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.
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.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2012 Regular Session of the General Assembly.

HOUSE BILL No. 1338



    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 5-11-1-9; (13)IN1338.1.1. -->     SECTION 1. IC 5-11-1-9, AS AMENDED BY P.L.172-2011, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) The state examiner, personally or through the deputy examiners, field examiners, or private examiners, shall examine all accounts and all financial affairs of every public office and officer, state office, state institution, and entity.
    (b) An examination of an entity deriving:
        (1) less than fifty percent (50%); or
        (2) subject to subsection (h), at least fifty percent (50%) but less than two hundred thousand dollars ($200,000) if the entity is organized as a not-for-profit corporation;
of its disbursements during the period of time subject to an examination from appropriations, public funds, taxes, and other sources of public expense shall be limited to matters relevant to the use of the public money received by the entity.
    (c) The examination of an entity described in subsection (b) may be waived or deferred by the state examiner if the state examiner determines in writing that all disbursements of public money during the period subject to examination were made for the purposes for which the money was received. However, the:
        (1) Indiana economic development corporation created by IC 5-28-3 and the corporation's funds, accounts, and financial affairs; and
        (2) department of financial institutions established by IC 28-11-1-1 and the department's funds, accounts, and financial affairs;
shall be examined biennially by the state board of accounts.
    (d) On every examination under this section, inquiry shall be made as to the following:
        (1) The financial condition and resources of each municipality, office, institution, or entity.
        (2) Whether the laws of the state and the uniform compliance guidelines of the state board of accounts established under section 24 of this chapter have been complied with.
        (3) The methods and accuracy of the accounts and reports of the person examined.
The examinations shall be made without notice.
    (e) If during an examination of a state office under this chapter the examiner encounters an inefficiency in the operation of the state office, the examiner may comment on the inefficiency in the examiner's report.
    (f) The state examiner, deputy examiners, any field examiner, or any private examiner, when engaged in making any examination or when engaged in any official duty devolved upon them by the state examiner, is entitled to do the following:
        (1) Enter into any state, county, city, township, or other public office in this state, or any entity, agency, or instrumentality, and examine any books, papers, documents, or electronically stored information for the purpose of making an examination.
        (2) Have access, in the presence of the custodian or the custodian's deputy, to the cash drawers and cash in the custody of the officer.
        (3) During business hours, examine the public accounts in any depository that has public funds in its custody pursuant to the laws of this state.
    (g) The state examiner, deputy examiner, or any field examiner, when engaged in making any examination authorized by law, may issue subpoenas for witnesses to appear before the examiner in person or to

produce books, papers, or other records (including records stored in electronic data processing systems) for inspection and examination. The state examiner, deputy examiner, and any field examiner may administer oaths and examine witnesses under oath orally or by interrogatories concerning the matters under investigation and examination. Under the authority of the state examiner, the oral examinations may be transcribed with the reasonable expense paid by the examined person in the same manner as the compensation of the field examiner is paid. The subpoenas shall be served by any person authorized to serve civil process from any court in this state. If a witness duly subpoenaed refuses to attend, refuses to produce information required in the subpoena, or attends and refuses to be sworn or affirmed, or to testify when called upon to do so, the examiner may apply to the circuit court having jurisdiction of the witness for the enforcement of attendance and answers to questions as provided by the law governing the taking of depositions.
     (h) This subsection applies to audited years beginning after June 30, 2009. The definitions in IC 20-24-1 apply throughout this subsection. Appropriations, public funds, taxes, and other sources of public money received by a nonprofit corporation as a charter school or organizer of a charter school for the purposes of a charter school may not be counted for the purpose of applying subsection (b)(2). Unless the nonprofit corporation receives other public money that would qualify the nonprofit corporation for a full examination of all accounts and financial affairs of the entity under subsection (b)(2), an examination of a charter school or organizer of a charter school must be limited to matters relevant to the use of the public money received for the charter school.

SOURCE: IC 20-24-1-2.5; (13)IN1338.1.2. -->     SECTION 2. IC 20-24-1-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2.5. "Authorizer" means, for a charter school, one (1) of the following:
        (1) A governing body.
        (2) A state educational institution that offers a four (4) year baccalaureate degree.
        (3) The executive (as defined in IC 36-1-2-5) of a consolidated city.
        (4) The charter board.
        (5) A nonprofit college or university that provides a four (4) year educational program for which it awards a baccalaureate or more advanced degree, including the following:
            Anderson University
            Bethel College
            Butler University
            Calumet College of St. Joseph
            DePauw University
            Earlham College
            Franklin College
            Goshen College
            Grace College
            Hanover College
            Holy Cross College
            Huntington University
            Indiana Tech
            Indiana Wesleyan University
            Manchester College
            Marian University
            Martin University
            Oakland City University
            Rose-Hulman Institute of Technology
            Saint Joseph's College
            Saint Mary-of-the-Woods College
            Saint Mary's College
            Taylor University
            Trine University
            University of Evansville
            University of Indianapolis
            University of Notre Dame
            University of Saint Francis
            Valparaiso University
            Wabash College.

SOURCE: IC 20-24-1-3; (13)IN1338.1.3. -->     SECTION 3. IC 20-24-1-3, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. "Charter" means a contract between an organizer and a sponsor an authorizer for the establishment of a charter school.
SOURCE: IC 20-24-1-9; (13)IN1338.1.4. -->     SECTION 4. IC 20-24-1-9 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 9. "Sponsor" means, for a charter school, one (1) of the following:
        (1) A governing body.
        (2) A state educational institution that offers a four (4) year baccalaureate degree.
        (3) The executive (as defined in IC 36-1-2-5) of a consolidated city.
        (4) The charter board.
        (5) A nonprofit college or university that provides a four (4) year educational program for which it awards a baccalaureate or more advanced degree, including the following:
            Anderson University
            Bethel College
            Butler University
            Calumet College of St. Joseph
            DePauw University
            Earlham College
            Franklin College
            Goshen College
            Grace College
            Hanover College
            Holy Cross College
            Huntington University
            Indiana Tech
            Indiana Wesleyan University
            Manchester College
            Marian University
            Martin University
            Oakland City University
            Rose-Hulman Institute of Technology
            Saint Joseph's College
            Saint Mary-of-the-Woods College
            Saint Mary's College
            Taylor University
            Trine University
            University of Evansville
            University of Indianapolis
            University of Notre Dame
            University of Saint Francis
            Valparaiso University
            Wabash College.
SOURCE: IC 20-24-2.1-1; (13)IN1338.1.5. -->     SECTION 5. IC 20-24-2.1-1, AS ADDED BY P.L.91-2011, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) The Indiana charter school board is established for the purpose of sponsoring authorizing charter schools throughout Indiana.
    (b) The charter board is a statewide charter school sponsor authorizer composed of the following seven (7) members appointed to four (4) year terms:
        (1) Two (2) members, who may not be members of the same political party, appointed by the governor.
        (2) One member who has previous experience with or on behalf of charter schools appointed by the state superintendent.
        (3) Four (4) members, who may not be legislators, appointed as follows:
            (A) One (1) member appointed by the president pro tempore of the senate.
            (B) One (1) member appointed by the minority leader of the senate.
            (C) One (1) member appointed by the speaker of the house of representatives.
            (D) One (1) member appointed by the minority leader of the house of representatives.
A member appointed under this subsection may not be removed by the member's appointing authority without cause before the end of the full four (4) year term.
    (c) The governor shall appoint the chairperson of the charter board.
    (d) A majority of the members appointed to the charter board constitutes a quorum. The affirmative votes of a majority of the voting members appointed to the charter board are required for the charter board to take action.
    (e) Each member of the charter board who is not a state employee is entitled to the minimum salary per diem provided by IC 4-10-11-2.1(b). The member is also entitled to reimbursement for traveling expenses as provided under IC 4-13-1-4 and other expenses actually incurred in connection with the member's duties as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget agency.
     (f) Members appointed to the charter board must collectively possess strong experience and expertise in:
        (1) public and nonprofit governance;
        (2) management;
        (3) finance;
        (4) public school leadership;
        (5) higher education;
        (6) school assessments, curriculum, and instruction; and
        (7) public education law.

SOURCE: IC 20-24-2.1-2; (13)IN1338.1.6. -->     SECTION 6. IC 20-24-2.1-2, AS ADDED BY P.L.91-2011, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. The charter board, with assistance from the department, shall:
        (1) establish a process to:
            (A) review a proposal to establish a charter school under IC 20-24-3-4;
            (B) make a decision on the proposal as required under IC 20-24-3-9; and
            (C) monitor charter schools sponsored authorized by the charter board; and
        (2) publish guidelines concerning the review process described in subdivision (1);
not later than December 31, 2011.
SOURCE: IC 20-24-2.2-1; (13)IN1338.1.7. -->     SECTION 7. IC 20-24-2.2-1, AS ADDED BY P.L.91-2011, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. The department shall establish a charter school page on the department's Internet web site that includes information on the following:
        (1) All approved sponsors, authorizers, including the sponsors' authorizers' processes for the following:
            (A) Monitoring approved schools at regular intervals.
            (B) Establishing minimum standards for renewing a charter or not renewing a charter.
            (C) Processes and standards for school closure, including the transfer of academic records to other schools and postsecondary educational institutions.
        (2) All pending applications for a charter.
        (3) All approved applications for a charter.
        (4) All rejected applications for a charter.
        (5) Annual performance data that includes the same demographic and performance data required from school corporations.
        (5) The organizer's annual report as required under IC 20-24-9.

SOURCE: IC 20-24-2.2-1.5; (13)IN1338.1.8. -->     SECTION 8. IC 20-24-2.2-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1.5. (a) All approved authorizers shall adopt standards of quality charter school authorizing.
    (b) The state board may conduct a review of an approved authorizer to determine whether the authorizer is in compliance with the standards adopted under subsection (a).

SOURCE: IC 20-24-2.2-2; (13)IN1338.1.9. -->     SECTION 9. IC 20-24-2.2-2, AS ADDED BY P.L.91-2011, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. The minimum standards for renewal and the standards to avoid closure imposed by sponsors authorizers on the charter school in the charter school agreement must include a

requirement that the charter school not fall within the application of IC 20-31-9-4, notwithstanding IC 20-31-9-1. remain in the lowest category or designation of school improvement in the third year after initial placement in the lowest category or designation established under IC 20-31-8-4.

SOURCE: IC 20-24-2.2-3; (13)IN1338.1.10. -->     SECTION 10. IC 20-24-2.2-3, AS AMENDED BY P.L.6-2012, SECTION 128, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. (a) After giving at least thirty (30) days notice, the state board may shall require a sponsor an authorizer to appear at a hearing conducted by the state board if the sponsor authorizer has renewed the charter of or failed to close a charter school that does not meet the minimum standards in the charter agreement as provided in section 2 of this chapter, as posted on the department's Internet web site.
    (b) After the hearing, the state board may implement one (1) or more of the following actions unless the state board finds sufficient justification for the charter school's performance under the state school accountability system:
        (1) Transfer the sponsorship authorization of the charter school identified in subsection (a) to the charter board.
        (2) Order the closure of the charter school identified in subsection (a) on the date set by the state board. at the end of the current school year.
        (3) Order the reduction of any administrative fee collected under IC 20-24-7-4 that is applicable to the charter school identified in subsection (a). to an amount not greater than fifty percent (50%) of the amount allowed under IC 20-24-7-4. The reduction must become effective at the beginning of the month following the month of the authorizer's hearing before the state board.
    (c) In determining whether to impose consequences under subsection (b), the state board must consider the following:
        (1) Enrollment of students with special challenges such as drug or alcohol addiction, prior withdrawal from school, prior incarceration, or other special circumstances.
        (2) High mobility of the student population resulting from the specific purpose of the charter school.
        (3) Annual improvement in the performance of students enrolled in the charter school, as measured by IC 20-31-8-1, compared with the performance of students enrolled in the charter school in the immediately preceding school year.
SOURCE: IC 20-24-2.2-4; (13)IN1338.1.11. -->     SECTION 11. IC 20-24-2.2-4, AS ADDED BY P.L.91-2011, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

JULY 1, 2013]: Sec. 4. If the state board has closed or transferred sponsorship authorization of at least twenty-five percent (25%) of the charter schools chartered by one (1) sponsor authorizer under section 3 of this chapter, the sponsor's authorizer's authority to sponsor authorize new charter schools may be suspended by the state board until the state board approves the sponsor authorizer to sponsor authorize new charter schools. A determination under this section to suspend a sponsor's an authorizer's authority to sponsor authorize new charter schools must identify the deficiencies that, if corrected, will result in the approval of the sponsor authorizer to sponsor authorize new charter schools.

SOURCE: IC 20-24-2.2-5; (13)IN1338.1.12. -->     SECTION 12. IC 20-24-2.2-5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) The purpose of this section is to establish a cooperative relationship:
        (1) between the department and an authorizer; and
        (2) that fosters improved decision making related to charter schools authorized by the authorizer.
    (b) As used in this section, "covered records" refers to the following:
        (1) Education records (as defined in 20 U.S.C. 1232g(a)(4), as in effect January 1, 2013) of students who enrolled in a charter school authorized by an authorizer that are in the possession of the department, the charter board, or the state board.
        (2) Records in the possession of the department, the charter board, or the state board that relate to the evaluation of the performance of a charter school authorized by an authorizer or students who are enrolled in a charter school authorized by an authorizer.
        (3) Records in the possession of the department, the charter board, or the state board that relate to the evaluation of the performance of certified employees employed by a charter school authorized by an authorizer.
        (4) Records in the possession of the department, the charter board, or the state board related to the evaluation of the performance of an authorizer.
    (c) Notwithstanding IC 5-14-3 or any other law, the department shall provide, without charge, an authorizer with either:
        (1) electronic access to; or
        (2) written copies of;
covered records, as requested by the authorizer, that relate to a

charter school authorized by the authorizer or to the students or certified employees of the charter school. The department shall provide the covered records on a schedule determined by the authorizer.
    (d) The department shall provide, without charge, an authorizer with a summary of the covered records that relate to a charter school authorized by the authorizer or to the students or certified employees of the charter school. The department shall provide the summary described in this subsection to the authorizer at least once each month. The authorizer may receive either paper copies of the summary or copies of the summary transmitted electronically, at the option of the authorizer. The summary must be sufficiently detailed to identify each category or collection of covered records. The department and the authorizer shall consult one another as necessary to carry out this section.

     (e) An authorizer may use covered records received under this section only to:
        (1) administer a charter authorization program;
        (2) monitor and evaluate compliance with state standards;
        (3) identify educational weaknesses in charter school programs; or
        (4) improve charter school performance.

     (f) An authorizer shall protect covered records received by the authorizer in a manner that will not permit the personal identification of students and their parents by persons other than officials of the authorizer who are directly involved in the authorization program or involved with studies related to charter schools authorized by the authorizer. An authorizer shall destroy personally identifiable data when the information is no longer needed for purposes of audit, evaluation, and enforcement of state and federal requirements related to the charter schools authorized by the authorizer.

SOURCE: IC 20-24-2.2-6; (13)IN1338.1.13. -->     SECTION 13. IC 20-24-2.2-6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6. (a) If the deficiencies identified under section 4 of this chapter are not corrected within two (2) years after the date the deficiencies are identified under section 4 of this chapter, the state board, following an affirmative vote of two-thirds (2/3) of the members, may revoke the authorizer's authority to function as an authorizer. The state board shall take all necessary steps to decommission the authorizer, including reassigning the authorizer's charter schools to the charter board,

as well as any related funds or other resources in the authorizer's custody.
     (b) Charter schools authorized by an authorizer who has been decommissioned under subsection (a) must apply to be approved by the charter board within one hundred fifty (150) days after the date the charter school's authorizer is decommissioned. A charter school that is not approved under this subsection must close at the end of the charter school's current school year.

SOURCE: IC 20-24-2.2-7; (13)IN1338.1.14. -->     SECTION 14. IC 20-24-2.2-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. An entity may relinquish its authorizer status by providing the state board a written statement describing the authorizer's intention not to be considered an authorizer and the reasons why the authorizer wishes to relinquish its authorizer status. The written statement must reflect the intention of the authorizer's governing body. The state board shall review and act on the authorizer's written statement and shall take all steps necessary to decommission the authorizer, including reassigning the authorizer's charter schools, as well as any related funds or resources in the authorizer's custody.
SOURCE: IC 20-24-3-1; (13)IN1338.1.15. -->     SECTION 15. IC 20-24-3-1, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. A sponsor An authorizer may grant a charter to an organizer to operate a charter school under this article.
SOURCE: IC 20-24-3-2; (13)IN1338.1.16. -->     SECTION 16. IC 20-24-3-2, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. A sponsor An authorizer may not grant a charter to a for-profit organizer.
SOURCE: IC 20-24-3-4; (13)IN1338.1.17. -->     SECTION 17. IC 20-24-3-4, AS AMENDED BY P.L.91-2011, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) An organizer may submit to the sponsor authorizer a proposal to establish a charter school.
    (b) A proposal must contain at least the following information:
        (1) Identification of the organizer.
        (2) A description of the organizer's organizational structure and governance plan.
        (3) The following information for the proposed charter school:
            (A) Name.
            (B) Purposes.
            (C) Governance structure.
            (D) Management structure.
            (E) Educational mission goals.
            (F) Curriculum and instructional methods.
            (G) Methods of pupil assessment.
            (H) Admission policy and criteria, subject to IC 20-24-5.
            (I) School calendar.
            (J) Age or grade range of students to be enrolled.
            (K) A description of staff responsibilities.
            (L) A description of the physical plant.
            (M) Budget and financial plans.
            (N) Personnel plan, including methods for selection, retention, and compensation of employees.
            (O) Transportation plan.
            (P) Discipline program.
            (Q) Plan for compliance with any applicable desegregation order.
            (R) The date when the charter school is expected to:
                (i) begin school operations; and
                (ii) have students attending the charter school.
            (S) The arrangement for providing teachers and other staff with health insurance, retirement benefits, liability insurance, and other benefits.
            (T) Any other applications submitted to a sponsor an authorizer in the previous five (5) years.
        (4) The manner in which the sponsor authorizer must conduct an annual audit of the program operations of the charter school.
    (c) This section does not waive, limit, or modify the provisions of:
        (1) IC 20-29 in a charter school where the teachers have chosen to organize under IC 20-29; or
        (2) an existing collective bargaining agreement for noncertificated employees (as defined in IC 20-29-2-11).
SOURCE: IC 20-24-3-5; (13)IN1338.1.18. -->     SECTION 18. IC 20-24-3-5 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 5. (a) This section applies only to a sponsor that is the executive of a consolidated city.
    (b) Before issuing a charter, the sponsor must receive the approval of a majority of the members of the legislative body (as defined in IC 36-1-2-9) of the consolidated city for the establishment of a charter school. The sponsor may issue charters for charter schools located in the consolidated city.
SOURCE: IC 20-24-3-5.5; (13)IN1338.1.19. -->     SECTION 19. IC 20-24-3-5.5, AS ADDED BY P.L.91-2011, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5.5. (a) This section applies to a sponsor an authorizer that is not the executive of a consolidated city.
    (b) Before issuing a charter, the sponsor authorizer must conduct

a public hearing concerning the establishment of the proposed charter school. At the public hearing, the governing body of the school corporation in which the proposed charter school will be located must be given an opportunity to comment on the effect of the proposed charter school on the school corporation, including any foreseen negative impacts on the school corporation.

SOURCE: IC 20-24-3-7; (13)IN1338.1.20. -->     SECTION 20. IC 20-24-3-7, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. The sponsor authorizer may revoke the charter of a charter school that does not, by the date specified in the charter:
        (1) begin school operations; and
        (2) have students attending the charter school.
SOURCE: IC 20-24-3-8; (13)IN1338.1.21. -->     SECTION 21. IC 20-24-3-8 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 8. Before granting a charter under which more than fifty percent (50%) of the students in a school corporation will attend a charter school, the governing body of the school corporation must receive the approval of the department.
SOURCE: IC 20-24-3-9; (13)IN1338.1.22. -->     SECTION 22. IC 20-24-3-9, AS ADDED BY P.L.169-2005, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. A sponsor An authorizer must notify an organizer that submits a proposal under section 4 of this chapter of the:
        (1) acceptance of the proposal; or
        (2) rejection of the proposal;
not later than seventy-five (75) days after the organizer submits the proposal.
SOURCE: IC 20-24-3-10; (13)IN1338.1.23. -->     SECTION 23. IC 20-24-3-10, AS AMENDED BY P.L.91-2011, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. (a) A sponsor An authorizer must notify the department of the following:
        (1) Receipt of a proposal.
        (2) Acceptance of a proposal.
        (3) Rejection of a proposal, including the reasons for the rejection.
        (4) The length of time for which a charter is granted.
        (5) School goals, educational program design, and an education management organization operating a school, if applicable.
        (6) The name and address of the education management organization, and the name of the chief operating officer of the education management organization, if applicable.
    (b) The department shall annually do the following:
        (1) Compile the information received under subsection (a) into a report.
        (2) Submit the report in an electronic format under IC 5-14-6 to the legislative council.
SOURCE: IC 20-24-3-11; (13)IN1338.1.24. -->     SECTION 24. IC 20-24-3-11, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 11. If a sponsor an authorizer rejects a charter school proposal, the organizer may:
        (1) amend the charter school proposal and resubmit the proposal to the same sponsor; authorizer;
        (2) submit a charter school proposal to another sponsor; authorizer; or
        (3) appeal the decision to the charter school review panel established by section 12 of this chapter.
SOURCE: IC 20-24-3-12; (13)IN1338.1.25. -->     SECTION 25. IC 20-24-3-12, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12. (a) This section applies if the sponsor authorizer rejects a proposal.
    (b) The organizer may appeal the decision of the sponsor authorizer to the charter school review panel established by subsection (c).
    (c) The charter school review panel is established. The members of the panel are as follows:
        (1) The governor or the governor's designee.
        (2) The state superintendent, who shall chair the panel.
        (3) A member of the state board appointed by the state superintendent.
        (4) A person with financial management experience appointed by the governor.
        (5) A community leader with knowledge of charter school issues appointed jointly by the governor and the state superintendent.
A member shall serve a two (2) year term and may be reappointed to the panel upon expiration of the member's term.
    (d) All decisions of the panel shall be determined by a majority vote of the panel's members.
    (e) Upon the request of an organizer, the panel shall meet to consider the organizer's proposal and the sponsor's authorizer's reasons for rejecting the proposal. The panel must allow the organizer and sponsor authorizer to participate in the meeting.
    (f) After the panel meets under subsection (e), the panel shall make one (1) of the following findings and issue the finding to the organizer and the sponsor: authorizer:
        (1) A finding that supports the sponsor's authorizer's rejection of the proposal.
        (2) A finding that:
            (A) recommends that the organizer amend the proposal; and
            (B) specifies the changes to be made in the proposal if the organizer elects to amend the proposal.
        (3) A finding that approves the proposal.
The panel shall issue the finding not later than forty-five (45) days after the panel receives the request for review.
    (g) If the panel makes a finding described in subsection (f)(1), the finding is final.
    (h) If the panel makes a finding described in subsection (f)(2), the organizer may amend the proposal according to the panel's recommendations and resubmit the proposal directly to the panel.
    (i) If the panel makes a finding described in subsection (f)(3), the proposal is considered conditionally approved. The approval shall be considered final upon delivery to the panel of written notice from the organizer and an eligible sponsor authorizer that the sponsor authorizer has agreed to serve as a sponsor an authorizer for the proposal approved by the panel.
    (j) Proposals approved under this section shall not be counted under any numerical limits placed upon a sponsor an authorizer or set of sponsors. authorizers.
SOURCE: IC 20-24-3-14; (13)IN1338.1.26. -->     SECTION 26. IC 20-24-3-14, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 14. (a) This section applies to university sponsors. authorizers.
    (b) Except as provided in subsection (c), the ultimate responsibility for choosing to sponsor authorize a charter school and responsibilities for maintaining sponsorship authorization rest with the university's board of trustees.
    (c) The university's board of trustees may vote to assign sponsorship authorization authority and sponsorship authorization responsibilities to another person or entity that functions under the direction of the university's board. A decision made under this subsection shall be communicated in writing to the department and the charter school review panel.
    (d) Before a university may sponsor authorize a charter school, the university must conduct a public meeting with public notice in the county where the charter school will be located.
SOURCE: IC 20-24-3-16; (13)IN1338.1.27. -->     SECTION 27. IC 20-24-3-16, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 16. An entity or multiple divisions of the same entity may not serve simultaneously as both the organizer and the

sponsor authorizer of the same charter school.

SOURCE: IC 20-24-4-1; (13)IN1338.1.28. -->     SECTION 28. IC 20-24-4-1, AS AMENDED BY P.L.91-2011, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) A charter must meet the following requirements:
        (1) Be a written instrument.
        (2) Be executed by a sponsor an authorizer and an organizer.
        (3) Confer certain rights, franchises, privileges, and obligations on a charter school.
        (4) Confirm the status of a charter school as a public school.
        (5) Be granted for:
            (A) not less than three (3) years; and
            (B) a fixed number of years agreed to by the sponsor authorizer and the organizer.
        (6) Provide for the following:
            (A) A review by the sponsor authorizer of the charter school's performance, including the progress of the charter school in achieving the academic goals set forth in the charter, at least one (1) time in each five (5) year period while the charter is in effect.
            (B) Renewal, if the sponsor authorizer and the organizer agree to renew the charter.
        (7) Specify the grounds for the sponsor authorizer to:
            (A) revoke the charter before the end of the term for which the charter is granted; or
            (B) not renew a charter.
        (8) Set forth the methods by which the charter school will be held accountable for achieving the educational mission and goals of the charter school, including the following:
            (A) Evidence of improvement in:
                (i) assessment measures, including the ISTEP and end of course assessments;
                (ii) attendance rates;
                (iii) graduation rates (if appropriate);
                (iv) increased numbers of Core 40 diplomas and other college and career ready indicators including advanced placement participation and passage, dual credit participation and passage, and International Baccalaureate participation and passage (if appropriate);
                (v) increased numbers of academic honors and technical honors diplomas (if appropriate);
                (vi) student academic growth;
                (vii) financial performance and stability; and
                (viii) governing board performance and stewardship, including compliance with applicable laws, rules and regulations, and charter terms.
            (B) Evidence of progress toward reaching the educational goals set by the organizer.
        (9) Describe the method to be used to monitor the charter school's:
            (A) compliance with applicable law; and
            (B) performance in meeting targeted educational performance.
        (10) Specify that the sponsor authorizer and the organizer may amend the charter during the term of the charter by mutual consent and describe the process for amending the charter.
        (11) Describe specific operating requirements, including all the matters set forth in the application for the charter.
        (12) Specify a date when the charter school will:
            (A) begin school operations; and
            (B) have students attending the charter school.
        (13) Specify that records of a charter school relating to the school's operation and charter are subject to inspection and copying to the same extent that records of a public school are subject to inspection and copying under IC 5-14-3.
        (14) Specify that records provided by the charter school to the department or sponsor authorizer that relate to compliance by the organizer with the terms of the charter or applicable state or federal laws are subject to inspection and copying in accordance with IC 5-14-3.
        (15) Specify that the charter school is subject to the requirements of IC 5-14-1.5.
    (b) A charter school shall set annual performance targets in conjunction with the charter school's sponsor. authorizer. The annual performance targets shall be designed to help each school meet applicable federal, state, and sponsor authorizer expectations.
SOURCE: IC 20-24-5-4; (13)IN1338.1.29. -->     SECTION 29. IC 20-24-5-4, AS AMENDED BY P.L.91-2011, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) Except as provided in this chapter, a charter school may not establish admission policies or limit student admissions in any manner in which a public school is not permitted to establish admission policies or limit student admissions.
    (b) Notwithstanding subsection (a), a charter school may operate as a single gender school if approved to do so by the sponsor. authorizer. A single gender charter school must be open to any student of the

gender the school serves who resides in Indiana.

SOURCE: IC 20-24-6-1; (13)IN1338.1.30. -->     SECTION 30. IC 20-24-6-1, AS AMENDED BY P.L.91-2011, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) Individuals who work at a charter school are employees of the charter school or of an entity with which the charter school has contracted to provide services.
    (b) Teachers in a conversion charter school may be employees of the charter school or of both the charter school and the school corporation that sponsored authorized the charter school, as determined by the provisions of the charter.
    (c) All benefits accrued by teachers as employees of the conversion charter school are the financial responsibility of the conversion charter school.
    (d) All benefits accrued by a teacher during the time the teacher was an employee only of the school corporation that sponsored authorized the charter school are the financial responsibility of the school corporation. The school corporation shall pay those benefits directly or reimburse the conversion charter school for the cost of the benefits.
SOURCE: IC 20-24-6-5; (13)IN1338.1.31. -->     SECTION 31. IC 20-24-6-5, AS AMENDED BY P.L.6-2012, SECTION 129, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) At least ninety percent (90%) of the individuals who teach full time in a charter school must either:
        (1) hold a license to teach in a public school in Indiana under IC 20-28-5; or
        (2) be in the process of obtaining a license to teach in a public school in Indiana under the transition to teaching program established by IC 20-28-4-2;
unless the charter school requests and the state board approves a waiver for a lower percentage.
    (b) An individual who does not qualify under subsection (a) may teach full time in a charter school if the individual meets one (1) of the following criteria:
        (1) The individual is in the process of obtaining a license to teach in a charter school in Indiana under IC 20-28-5-16.
        (2) The individual holds at least a bachelor's degree with a grade point average of at least three (3.0) on a four (4.0) point scale from an accredited postsecondary educational institution. in the content or related area in which the individual teaches.
Individuals qualifying under this subsection may not exceed ten percent (10%) of the full time teaching staff unless the charter school requests and the state board approves a waiver for a higher percentage.
    (c) An individual described in subsection (a)(2) must complete the

transition to teaching program not later than three (3) years after beginning to teach at a charter school.
    (d) An individual who holds a part-time teaching position in a charter school must hold at least a bachelor's degree with a grade point average of at least three (3.0) on a four (4.0) point scale from an accredited postsecondary educational institution. in the content or related area in which the individual teaches.
    (e) An individual who provides to students in a charter school a service:
        (1) that is not teaching; and
        (2) for which a license is required under Indiana law;
must have the appropriate license to provide the service in Indiana.

SOURCE: IC 20-24-6-8; (13)IN1338.1.32. -->     SECTION 32. IC 20-24-6-8, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. The decision by a sponsor an authorizer whether to grant a charter is not subject to restraint by a collective bargaining agreement.
SOURCE: IC 20-24-7-2; (13)IN1338.1.33. -->     SECTION 33. IC 20-24-7-2, AS AMENDED BY P.L.146-2008, SECTION 460, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. (a) Not later than the date established by the department for determining ADM, and after May 31 each year, the organizer shall submit to the department budget agency the following information on a form prescribed by the department: budget agency:
        (1) The number of students enrolled in the charter school.
        (2) The name and address of each student.
        (3) The name of the school corporation in which the student has legal settlement.
        (4) The name of the school corporation, if any, that the student attended during the immediately preceding school year.
        (5) The grade level in which the student will enroll in the charter school.
The department budget agency shall verify the accuracy of the information reported.
    (b) This subsection applies after December 31 of the calendar year in which a charter school begins its initial operation. The department budget agency shall distribute to the organizer the state tuition support distribution. The department budget agency shall make a distribution under this subsection at the same time and in the same manner as the department makes a distribution of state tuition support under IC 20-43-2 to other school corporations.
SOURCE: IC 20-24-7-3; (13)IN1338.1.34. -->     SECTION 34. IC 20-24-7-3, AS AMENDED BY P.L.146-2008,

SECTION 461, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. (a) This section applies to a conversion charter school.
    (b) Beginning not more than sixty (60) days after the department budget agency receives the information reported under section 2(a) of this chapter, the department budget agency 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) for 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 budget agency 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.
    (c) 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 20-49-7 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 20-24-7-4; (13)IN1338.1.35. -->     SECTION 35. IC 20-24-7-4, AS AMENDED BY P.L.91-2011, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) Services that a school corporation provides to a charter school, including transportation, may be provided at not more than one hundred three percent (103%) of the actual cost of the services.
    (b) This subsection applies to a sponsor an authorizer that is a state educational institution described in IC 20-24-1-7(2). In a calendar year, a state educational institution may receive from the organizer of a charter school sponsored authorized by the state educational institution an administrative fee equal to not more than three percent (3%) of the total amount the organizer receives during the calendar year from basic tuition support (as defined in IC 20-43-1-8).
    (c) This subsection applies to the executive of a consolidated city that sponsors authorizes a charter school. In a calendar year, the executive may collect from the organizer of a charter school sponsored authorized by the executive an administrative fee equal to not more than three percent (3%) of the total amount the organizer receives during the calendar year for basic tuition support.
    (d) This subsection applies to a sponsor an authorizer that is a nonprofit college or university that is approved by the state board of education. In a calendar year, a private college or university may collect from the organizer of a charter school sponsored authorized by the private college or university an administrative fee equal to not more than three percent (3%) of the total amount the organizer receives during the calendar year for basic tuition support.
    (e) This subsection applies to the charter board. In a calendar year, the charter school board may collect from the organizer of a charter school sponsored authorized by the charter board an administrative fee equal to not more than three percent (3%) of the total amount the organizer receives during the calendar year for basic tuition support.
    (f) A sponsor's An authorizer's administrative fee may not include any costs incurred in delivering services that a charter school may purchase at its discretion from the sponsor. authorizer. The sponsor authorizer shall use its funding provided under this section exclusively for the purpose of fulfilling sponsoring authorizing obligations.
    (g) Except for oversight services, a charter school may not be required to purchase services from its sponsor authorizer as a

condition of charter approval or of executing a charter contract, nor may any such condition be implied.
    (h) A charter school may choose to purchase services from its sponsor. authorizer. In that event, the charter school and sponsor authorizer shall execute an annual service contract, separate from the charter contract, stating the parties' mutual agreement concerning the services to be provided by the sponsor authorizer and any service fees to be charged to the charter school. A sponsor An authorizer may not charge more than market rates for services provided to a charter school.
    (i) Not later than ninety (90) days after the end of each fiscal year, each sponsor authorizer shall provide to each charter school it sponsors authorizes an itemized accounting of the actual costs of services purchased by the charter school from the sponsor. authorizer. Any difference between the amount initially charged to the charter school and the actual cost shall be reconciled and paid to the owed party. If either party disputes the itemized accounting, any charges included in the accounting, or charges to either party, either party may request a review by the department. budget agency. The requesting party shall pay the costs of the review.

SOURCE: IC 20-24-7-5; (13)IN1338.1.36. -->     SECTION 36. IC 20-24-7-5, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) An organizer may apply for and accept for a charter school:
        (1) independent financial grants; and
        (2) funds from public or private sources other than the department or budget agency.
    (b) An organizer shall make all applications, enter into all contracts, and sign all documents necessary for the receipt by a charter school of aid, money, or property from the federal government.
SOURCE: IC 20-24-7-6.5; (13)IN1338.1.37. -->     SECTION 37. IC 20-24-7-6.5, AS ADDED BY P.L.229-2011, SECTION 170, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6.5. (a) Subject to subsection (b) and with the approval of a majority of the members of the governing body, a school corporation may distribute any part of the following to a conversion school sponsored authorized by the school corporation in the amount and under the terms and conditions adopted by a majority of the members of the governing body:
        (1) State tuition support and other state distributions to the school corporation.
        (2) Any other amount deposited in the school corporation's general fund.
    (b) The total amount that may be transferred under subsection (a) in

a calendar year to a particular conversion charter school may not exceed the result determined under STEP FOUR of the following formula:
        STEP ONE: Determine the result of:
            (A) the amount of state tuition support that the school corporation is eligible to receive in the calendar year; divided by
            (B) the current ADM of the school corporation for the calendar year.
        STEP TWO: Determine the result of:
            (A) the amount of state tuition support that the conversion charter school is eligible to receive in the calendar year; divided by
            (B) the current ADM of the conversion charter school for the calendar year.
        STEP THREE: Determine the greater of zero (0) or the result of:
            (A) the STEP ONE amount; minus
            (B) the STEP TWO amount.
        STEP FOUR: Determine the result of:
            (A) the STEP THREE amount; multiplied by
            (B) the current ADM of the conversion charter school for the calendar year.

SOURCE: IC 20-24-7-8; (13)IN1338.1.38. -->     SECTION 38. IC 20-24-7-8, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. A sponsor An authorizer may request and receive financial reports concerning a charter school from the organizer at any time.
SOURCE: IC 20-24-7-9; (13)IN1338.1.39. -->     SECTION 39. IC 20-24-7-9, AS AMENDED BY P.L.146-2008, SECTION 463, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. (a) This section applies if:
        (1) a sponsor: an authorizer:
            (A) revokes a charter before the end of the term for which the charter is granted; or
            (B) does not renew a charter; or
        (2) a charter school otherwise terminates its charter before the end of the term for which the charter is granted.
    (b) Any state funds that remain to be distributed to the charter school in the calendar year in which an event described in subsection (a) occurs shall be distributed as follows:
        (1) First, to the common school loan fund to repay any existing obligations of the charter school under IC 20-49-7.
        (2) Second, to the entities that distributed the funds to the charter

school. A distribution under this subdivision shall be on a pro rata basis.
    (c) If the funds described in subsection (b) are insufficient to repay all existing obligations of the charter school under IC 20-49-7, the state shall repay any remaining obligations of the charter school under IC 20-49-7 from the amount appropriated for state tuition support distributions.

SOURCE: IC 20-24-7-10; (13)IN1338.1.40. -->     SECTION 40. IC 20-24-7-10, AS ADDED BY P.L.169-2005, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. (a) The department budget agency shall carry out a program to identify all federal funds for which a charter school is eligible.
    (b) The department budget agency shall apply for all federal funds that are available for charter schools and for which Indiana is eligible.
    (c) Upon receiving notice under IC 20-5.5-3-9 IC 20-24-3-10 from a sponsor an authorizer that a charter has been approved, the department shall immediately inform the budget agency and the organizer of the organizer's potential eligibility for federal charter school start-up grants.
    (d) The department budget agency shall distribute federal charter school start-up grants to eligible organizers in a timely manner according to the department's budget agency's published guidelines for distributing the grants.
    (e) The department budget agency shall compile a biannual report and submit the report to the state office of federal grants and procurement and to charter school organizers and sponsors. authorizers. The report submitted under this subsection must contain the following information for grants distributed under this section:
        (1) Beginning and end dates for each grant cycle.
        (2) The dates on which:
            (A) grant applications and requests for renewal were received; and
            (B) grants were awarded.
        (3) The amount of each grant awarded.
SOURCE: IC 20-24-7-11; (13)IN1338.1.41. -->     SECTION 41. IC 20-24-7-11, AS AMENDED BY P.L.91-2011, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 11. (a) If the United States Department of Education approves a new competition for states to receive matching funds for charter school facilities, the department budget agency shall pursue this federal funding.
    (b) To increase the state's opportunity to receive matching funds from the United States Department of Education, the department shall

develop a facilities incentive grants program before January 1, 2010. After June 30, 2013, the facilities incentive grants program shall be administered by the budget agency.
    (c) The department budget agency shall use the priority criteria set forth in 21 U.S.C. 7221d(b) and 34 CFR 226.12 through 34 CFR 226.14 to develop and maintain the facilities incentive grants program.

SOURCE: IC 20-24-7-13; (13)IN1338.1.42. -->     SECTION 42. IC 20-24-7-13, AS AMENDED BY P.L.229-2011, SECTION 171, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 13. (a) As used in this section, "virtual charter school" means any charter school, including a conversion charter school, that provides for the delivery of more than fifty percent (50%) of instruction to students through:
        (1) virtual distance learning;
        (2) online technologies; or
        (3) computer based instruction.
    (b) Beginning with the 2011-2012 school year, a virtual charter school may apply for sponsorship authorization with any statewide sponsor authorizer in accordance with the sponsor's authorizer's guidelines.
    (c) Before January 1, 2012, a virtual charter school is entitled to receive funding from the state in an amount equal to the sum of (1) the product of:
        (A) (1) the number of students included in the virtual charter school's ADM; multiplied by
        (B) (2) eighty percent (80%) of statewide average basic tuition support.
    (d) After December 31, 2011, and before January 1, 2014, a virtual charter school is entitled to receive funding from the state in an amount equal to the sum of:
        (1) the product of:
            (A) the number of students included in the virtual charter school's ADM; multiplied by
            (B) eighty-seven and five-tenths percent (87.5%) of the school's foundation amount determined under IC 20-43-5-4; plus
        (2) the total of any special education grants under IC 20-43-7 to which the virtual charter school is entitled.
     (e) After December 31, 2013, a virtual charter school is entitled to receive funding from the state in the manner prescribed under IC 20-43.
     (f) After December 31, 2011, a virtual charter school is entitled to

receive special education grants under IC 20-43-7 calculated in the same manner as special education grants are calculated for other school corporations.
    (d) (g) The department state board shall adopt rules under IC 4-22-2 to govern the operation of virtual charter schools.
    (e) (h) Beginning in 2009, The department, with the approval of the state board, shall before December 1 of each year submit an annual report to the budget committee concerning the program under this section.
    (f) This subsection does not apply to students who were enrolled in a virtual charter school during the 2010-2011 school year. Each school year, at least sixty percent (60%) of the students who are enrolled in virtual charter schools under this section for the first time must have been included in the state's ADM count for the previous school year.

SOURCE: IC 20-24-7.5-2; (13)IN1338.1.43. -->     SECTION 43. IC 20-24-7.5-2 IS REPEALED [EFFECTIVE JANUARY 1, 2014]. Sec. 2. This chapter does not apply to a virtual charter school.
SOURCE: IC 20-24-7.5-2.5; (13)IN1338.1.44. -->     SECTION 44. IC 20-24-7.5-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2.5. The budget agency shall administer this chapter.
SOURCE: IC 20-24-8-3; (13)IN1338.1.45. -->     SECTION 45. IC 20-24-8-3, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. For each charter school established under this article, the charter school and the organizer are accountable to the sponsor authorizer for ensuring compliance with:
        (1) applicable federal and state laws;
        (2) the charter; and
        (3) the Constitution of the State of Indiana.
SOURCE: IC 20-24-9-1; (13)IN1338.1.46. -->     SECTION 46. IC 20-24-9-1 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 1. A sponsor that has established a charter school shall submit an annual report to the department for informational and research purposes.
SOURCE: IC 20-24-9-2; (13)IN1338.1.47. -->     SECTION 47. IC 20-24-9-2 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 2. An annual report under this chapter must contain the following information:
        (1) Results of all standardized testing, including ISTEP program testing, end of course assessments, and any other assessments used for each sponsored school.
        (2) A description of the educational methods and teaching methods employed for each sponsored school.
        (3) Attendance rates for each sponsored school.
        (4) Graduation rates (if appropriate), including attainment of Core 40 and academic honors diplomas for each sponsored school.
        (5) Student enrollment data for each sponsored school, including the following:
            (A) The number of students enrolled.
            (B) The number of students expelled.
        (6) Schools that closed or for which the charter was not renewed, and the reasons for the closure or nonrenewal.
SOURCE: IC 20-24-9-3; (13)IN1338.1.48. -->     SECTION 48. IC 20-24-9-3, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. The sponsor authorizer shall oversee a charter school's compliance with:
        (1) the charter; and
        (2) all applicable laws.
SOURCE: IC 20-24-9-4; (13)IN1338.1.49. -->     SECTION 49. IC 20-24-9-4, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. Notwithstanding the provisions of the charter, a sponsor an authorizer that grants a charter may revoke the charter at any time before the expiration of the term of the charter if the sponsor authorizer determines that at least one (1) of the following occurs:
        (1) The organizer fails to comply with the conditions established in the charter.
        (2) The charter school established by the organizer fails to meet the educational goals set forth in the charter.
        (3) The organizer fails to comply with all applicable laws.
        (4) The organizer fails to meet generally accepted government accounting principles.
        (5) One (1) or more grounds for revocation exist as specified in the charter.
SOURCE: IC 20-24-9-5; (13)IN1338.1.50. -->     SECTION 50. IC 20-24-9-5, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. A charter school shall report the following to the sponsor: authorizer:
        (1) Attendance records.
        (2) Student performance data.
        (3) Financial information.
        (4) Any information necessary to comply with state and federal government requirements.
        (5) Any other information specified in the charter.
SOURCE: IC 20-24-9-7; (13)IN1338.1.51. -->     SECTION 51. IC 20-24-9-7, AS ADDED BY P.L.148-2012, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

JULY 1, 2013]: Sec. 7. If an organizer of a charter school maintains an Internet web site for a charter school, the organizer of a the charter school shall publish the names of the charter school's governing body on the charter school's Internet web site.

SOURCE: IC 20-24-11-1; (13)IN1338.1.52. -->     SECTION 52. IC 20-24-11-1, AS AMENDED BY P.L.91-2011, SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) This section does not apply to an existing public elementary or secondary school that the governing body of the school corporation in which the school is located has scheduled for closure.
    (b) An existing public elementary or secondary school may be converted into a charter school if all of the following conditions apply:
        (1) At least fifty-one percent (51%) of the parents of students who attend the school have signed a petition requesting the conversion, which must be completed not later than ninety (90) days after the date of the first signature.
        (2) The school has been placed in either of the two (2) lowest categories or designations under IC 20-31-8-3 for two (2) consecutive years.
        (3) The governing body votes to convert an existing school within the school corporation.
    (c) Notwithstanding subsection (b), if a governing body operates a school that has been placed in either of the two (2) lowest categories or designations under IC 20-31-8-3 for four (4) consecutive years, the governing body may not serve as that charter school's sponsor. authorizer.
    (d) A conversion charter school shall continue to comply with all legal requirements concerning student diversity and treatment of children with special needs and accept all students who attended the school before its conversion and who wish to attend the conversion charter school. If any space remains, any student in Indiana may attend the conversion charter school.
SOURCE: IC 20-24-12-3; (13)IN1338.1.53. -->     SECTION 53. IC 20-24-12-3, AS ADDED BY P.L.91-2011, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. The department budget agency shall administer the program.
SOURCE: IC 20-24-12-4; (13)IN1338.1.54. -->     SECTION 54. IC 20-24-12-4, AS ADDED BY P.L.91-2011, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) The charter school facilities assistance fund is established. The department budget agency shall administer the fund.
    (b) The fund consists of the following:
        (1) Money appropriated or authorized by the general assembly.
        (2) The repayment proceeds of loans made to charter schools from the fund.
        (3) Any gifts and grants made to the fund or other money required by law to be deposited in the fund.
        (4) Any federal grants that are received to capitalize or supplement the fund.
        (5) Any earnings on money in the fund.
    (c) The expenses of administering the fund shall be paid from money in the fund.
    (d) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.
    (e) The fund may be used by the department budget agency as a revolving fund for the purposes described in section 2 of this chapter.
    (f) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
SOURCE: IC 20-24-12-5; (13)IN1338.1.55. -->     SECTION 55. IC 20-24-12-5, AS ADDED BY P.L.91-2011, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. The department budget agency may apply to the United States Department of Education for a state charter school facilities incentive program grant authorized under 34 U.S.C. 7221d(b). The department budget agency shall use the proceeds of any state charter school facilities incentive program grant awarded to the state for purposes of the program. To the extent permitted by federal law, the proceeds may be used to pay the administrative expenses of the program.
SOURCE: IC 20-24-12-6; (13)IN1338.1.56. -->     SECTION 56. IC 20-24-12-6, AS ADDED BY P.L.91-2011, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6. The department budget agency may authorize money in the fund to be used for any of the following purposes:
        (1) To pay first semester costs for charter schools first opening after June 30, 2011.
        (2) To repay advances and loans to charter schools made before June 30, 2011.
        (3) To match federal grants described in IC 20-24-7-11(a).
        (4) To loan or grant money from the fund to a charter school to carry out the purposes described in section 2 of this chapter.
SOURCE: IC 20-24-12-7; (13)IN1338.1.57. -->     SECTION 57. IC 20-24-12-7, AS ADDED BY P.L.91-2011, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) The department budget agency shall establish written procedures for providing grants or loans from the fund

to charter schools. The written procedures must include at least the following:
        (1) An application procedure.
        (2) A procedure to identify projects that may qualify for a grant or loan.
        (3) Criteria for establishing the priority of projects for which grants or loans will be made.
        (4) Procedures for selecting projects for which grants or loans will be made.
    (b) To apply for a grant or loan from the fund, a charter school must submit an application that contains the information required by the department. budget agency.

SOURCE: IC 20-24-12-8; (13)IN1338.1.58. -->     SECTION 58. IC 20-24-12-8, AS ADDED BY P.L.91-2011, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. In making its determination to approve or disapprove a grant or loan application, the department budget agency may consider the following:
        (1) The soundness of the financial business plans of the applicant charter school.
        (2) The availability to the charter school of other sources of funding.
        (3) The geographic distribution of grants or loans made from the fund.
        (4) The impact that grants or loans received under this chapter will have on the charter school's receipt of other private and public financing.
        (5) Plans for innovatively enhancing or leveraging funds received under this chapter, such as loan guarantees or other types of credit enhancements.
        (6) The financial needs of the charter school.
SOURCE: IC 20-24-12-9; (13)IN1338.1.59. -->     SECTION 59. IC 20-24-12-9, AS ADDED BY P.L.91-2011, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. The department budget agency may make grants or loans under this chapter on a per student basis.
SOURCE: IC 20-24-12-10; (13)IN1338.1.60. -->     SECTION 60. IC 20-24-12-10, AS AMENDED BY P.L.6-2012, SECTION 130, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. The following apply to a loan from the fund to a charter school under this chapter:
        (1) A loan may not exceed the maximum amount set by the department. budget agency.
        (2) The term of the loan may not exceed fifteen (15) years after the date of the loan.
        (3) A charter school may receive multiple loans from the fund as long as the total amount outstanding on all loans granted to the charter school from the fund does not exceed the maximum amount set by the department. budget agency.
        (4) The department budget agency shall determine the interest rate and other terms for the loan, subject to the approval of the state board of finance.
        (5) A charter school must enter into a loan agreement with the department budget agency before receiving a loan from the fund.
SOURCE: IC 20-24-12-12; (13)IN1338.1.61. -->     SECTION 61. IC 20-24-12-12, AS ADDED BY P.L.91-2011, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12. The department budget agency shall withhold the amount of the balance of the loan due in a year on a loan made under this chapter from state tuition support distributions that would otherwise be made in the year to the charter school. To the extent possible, the department budget agency shall withhold an equal amount from each installment of state tuition support distributed to the charter school. Withheld amounts reduce the balance of the loan of the charter school. The auditor of state shall transfer withheld amounts to the fund.
SOURCE: IC 20-39-1-1; (13)IN1338.1.62. -->     SECTION 62. IC 20-39-1-1, AS ADDED BY P.L.2-2006, SECTION 162, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. All public school governing bodies, except a charter school organizer, shall adopt and fully and accurately implement a single, unified accounting system as prescribed by the state board and the state board of accounts.
SOURCE: IC 20-39-1-2; (13)IN1338.1.63. -->     SECTION 63. IC 20-39-1-2 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 2. Section 1 of this chapter and rules and guidelines adopted under section 1 of this chapter apply to a charter school.
SOURCE: IC 20-39-1-4; (13)IN1338.1.64. -->     SECTION 64. IC 20-39-1-4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. Charter school organizers shall adopt and accurately implement a single, unified accounting system for charter school organizers as prescribed by the state board and the state board of accounts. The system, including a chart of accounts and all prescribed forms, must enable charter school organizers to adopt the accrual basis method of accounting.
SOURCE: IC 20-43-1-1; (13)IN1338.1.65. -->     SECTION 65. IC 20-43-1-1, AS AMENDED BY P.L.144-2012, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JUNE 30, 2013]: Sec. 1. This article expires July 1, 2013. July 1, 2015.
SOURCE: IC 20-43-1-23; (13)IN1338.1.66. -->     SECTION 66. IC 20-43-1-23, AS ADDED BY P.L.2-2006, SECTION 166, IS AMENDED TO READ AS FOLLOWS

[EFFECTIVE JULY 1, 2013]: Sec. 23. "School corporation" means the following:
        (1) Any local public school corporation established under Indiana law.
        (2) Except as otherwise indicated in this article, a charter school organizer.

SOURCE: IC 20-43-1-25; (13)IN1338.1.67. -->     SECTION 67. IC 20-43-1-25, AS AMENDED BY P.L.229-2011, SECTION 203, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 25. "State tuition support" means the amount of state funds to be distributed to:
        (1) a school corporation other than a virtual charter school in any calendar year under this article for all grants, distributions, and awards described in IC 20-43-2-3; and
        (2) a virtual charter school in any calendar year under IC 20-43-6-3. under this article beginning after December 31, 2013, for all grants, distributions, and awards described in IC 20-43-2-3, except IC 20-43-2-3(3).
SOURCE: IC 20-43-2-1; (13)IN1338.1.68. -->     SECTION 68. 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. Except as provided in IC 20-24-7-2, the department shall distribute the amount appropriated by the general assembly for distribution as state tuition support in accordance with this article. 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 20-43-2-2; (13)IN1338.1.69. -->     SECTION 69. IC 20-43-2-2, AS AMENDED BY P.L.229-2011, SECTION 204, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 2. The maximum state distribution for a calendar year for all school corporations for the purposes described in section 3 of this chapter is:
        (1) six billion two hundred forty-seven million eight hundred thousand dollars ($6,247,800,000) in 2011;
        (2) six billion two hundred seventy-seven million eight hundred thousand dollars ($6,277,800,000) in 2012; and
        (3) six billion three hundred thirty-nine million six hundred thousand dollars ($6,339,600,000) in 2013 and each year thereafter.
SOURCE: IC 20-43-5-3; (13)IN1338.1.70. -->     SECTION 70. IC 20-43-5-3, AS AMENDED BY P.L.229-2011, SECTION 208, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. A school corporation's complexity index is determined under the following formula:
        STEP ONE: Determine the greater of zero (0) or the result of the following:
            (1) Determine the percentage of the school corporation's students who were eligible for free or reduced price lunches in the school year ending in the later of:
                (A) 2011 for the purposes of determining the complexity index in 2012 and 2013; or
                (B) the first year of operation of the school corporation.
            (2) Determine the quotient of:
                (A) in 2012:
                (i) two thousand one hundred twenty-nine dollars ($2,129); divided by
                (ii) four thousand two hundred eighty dollars ($4,280); and
                (B) in 2013, and each year thereafter:
                (i) two thousand one hundred ninety dollars ($2,190); divided by
                (ii) four thousand four hundred five dollars ($4,405).
            (3) Determine the product of:
                (A) the subdivision (1) amount; multiplied by
                (B) the subdivision (2) amount.
        STEP TWO: Determine the result of one (1) plus the STEP ONE result.
        STEP THREE: This STEP applies if the STEP TWO result in 2012 is equal to or greater than at least one and twenty-eight hundredths (1.28) and applies if the STEP TWO result in 2013, and each year thereafter, is at least one and thirty-one hundredths (1.31). Determine the result of the following:
            (1) In 2012, subtract one and twenty-eight hundredths (1.28) and in 2013, and each year thereafter, subtract one and thirty-one hundredths (1.31) from the STEP TWO result.
            (2) Determine the result of:
                (A) the STEP TWO result; plus
                (B) the subdivision (1) result.
The data to be used in making the calculations under STEP ONE must be the data collected in the annual pupil enrollment count by the

department, or in the case of a charter school, the budget agency.

SOURCE: IC 20-43-5-4; (13)IN1338.1.71. -->     SECTION 71. IC 20-43-5-4, AS AMENDED BY P.L.229-2011, SECTION 209, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 4. A school corporation's foundation amount for a calendar year is the result determined under STEP THREE of the following formula:
        STEP ONE: The STEP ONE amount is:
            (A) in 2012, four thousand two hundred eighty dollars ($4,280); and
            (B) in 2013 and each year thereafter, four thousand four hundred five dollars ($4,405).
        STEP TWO: Multiply the STEP ONE amount by the school corporation's complexity index.
        STEP THREE: Determine the sum of the STEP TWO amount and the following:
            (A) Zero dollars ($0), if the school corporation's current ADM is less than five hundred (500).
            (B) One hundred fifty dollars ($150), if the school corporation's current ADM is at least five hundred (500) and is not more than one thousand (1,000).
            (C) The result of one hundred fifty thousand dollars ($150,000) divided by the school corporation's current ADM, if the school corporation's current ADM is more than one thousand (1,000).
SOURCE: IC 20-43-5-6; (13)IN1338.1.72. -->     SECTION 72. IC 20-43-5-6, AS AMENDED BY P.L.229-2011, SECTION 210, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 6. (a) A school corporation's transition to foundation amount for a calendar year is equal to the result determined under STEP TWO of the following formula:
        STEP ONE: Determine the difference of:
            (A) the school corporation's foundation amount; minus
            (B) the lesser of:
                (i) the school corporation's previous year revenue foundation amount; or
                (ii) the result of the school corporation's foundation amount multiplied by one and two-tenths (1.2).
        STEP TWO: A school corporation's STEP TWO amount is the following:
            (A) For a charter school located outside Marion County that has previous year revenue that is not greater than zero (0), the charter school's STEP TWO amount is the quotient of:
                (i) the school corporation's transition to foundation revenue

for the calendar year where the charter school is located; divided by
                (ii) the school corporation's current ADM.
            (B) For a charter school located in Marion County that has previous year revenue that is not greater than zero (0), the charter school's STEP TWO amount is the weighted average of the transition to foundation revenue for the school corporations where the students counted in the current ADM of the charter school have legal settlement, as determined under item (iv) of the following formula:
                (i) Determine the transition to foundation revenue for each school corporation where a student counted in the current ADM of the charter school has legal settlement.
                (ii) For each school corporation identified in item (i), divide the item (i) amount by the school corporation's current ADM.
                (iii) For each school corporation identified in item (i), multiply the item (ii) amount by the number of students counted in the current ADM of the charter school that have legal settlement in the particular school corporation.
                (iv) Determine the sum of the item (iii) amounts for the charter school.
            (C) The STEP TWO amount for a school corporation that is not a charter school described in clause (A) or (B) is the following:
                (i) The school corporation's foundation amount for the calendar year if the STEP ONE amount is zero (0) or greater.
                (ii) The amount determined under subsection (b), if the school corporation's STEP ONE amount is less than zero (0).
    (b) For the purposes of STEP TWO (C)(ii) in subsection (a), determine the result of:
        (1) the result determined for the school corporation under STEP ONE (B) of subsection (a); minus
        (2) the result of:
            (A) the absolute value of the STEP ONE amount; divided by
            (B) seven (7) in 2012 and six (6) in 2013 and each year thereafter.

SOURCE: IC 20-43-6-3; (13)IN1338.1.73. -->     SECTION 73. IC 20-43-6-3, AS AMENDED BY P.L.229-2011, SECTION 212, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 3. (a) A school corporation's basic tuition support for a year is the amount determined under the

applicable provision of this section.
    (b) The school corporation's basic tuition support for a year is equal to the school corporation's transition to foundation revenue for the year.
    (c) This subsection applies to students of a virtual charter school. A virtual charter school's basic tuition support for a year for those students is the amount determined under IC 20-24-7-13.

SOURCE: IC 20-43-8-0.5; (13)IN1338.1.74. -->     SECTION 74. IC 20-43-8-0.5 IS REPEALED [EFFECTIVE JANUARY 1, 2014]. Sec. 0.5. This chapter does not apply to a virtual charter school.
SOURCE: IC 20-43-8-2; (13)IN1338.1.75. -->     SECTION 75. IC 20-43-8-2, AS AMENDED BY P.L.234-2007, SECTION 137, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. (a) Before December 1 of each year, the department of workforce development shall provide the department and the budget agency with a report, to be used to determine career and technical education grant amounts in the second calendar year after the year in which the report is provided, listing whether the labor market demand for each generally recognized labor category is more than moderate, moderate, or less than moderate. In the report, the department of workforce development shall categorize each of the career and technical education programs using the following four (4) categories:
        (1) Programs that address employment demand for individuals in labor market categories that are projected to need more than a moderate number of individuals.
        (2) Programs that address employment demand for individuals in labor market categories that are projected to need a moderate number of individuals.
        (3) Programs that address employment demand for individuals in labor market categories that are projected to need less than a moderate number of individuals.
        (4) All programs not covered by the employment demand categories of subdivisions (1) through (3).
    (b) Before December 1 of each year, the department of workforce development shall provide the department and budget agency with a report, to be used to determine grant amounts that will be distributed under this chapter in the second calendar year after the year in which the report is provided, listing whether the average wage level for each generally recognized labor category for which career and technical education programs are offered is a high wage, a moderate wage, or a less than moderate wage.
    (c) In preparing the labor market demand report under subsection (a) and the average wage level report under subsection (b), the

department of workforce development shall, if possible, list the labor market demand and the average wage level for specific regions, counties, and municipalities.
    (d) If a new career and technical education program is created by rule of the state board, the department of workforce development shall determine the category in which the program should be included.

SOURCE: IC 20-43-9-6; (13)IN1338.1.76. -->     SECTION 76. IC 20-43-9-6, AS AMENDED BY P.L.229-2011, SECTION 217, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 6. A school corporation's primetime distribution for a calendar year under this chapter is the amount determined by the following formula:
        STEP ONE: Determine the applicable target pupil/teacher ratio for the school corporation as follows:
            (A) If the school corporation's complexity index is less than one and one-tenth (1.1), the school corporation's target pupil/teacher ratio is eighteen to one (18:1).
            (B) If the school corporation's complexity index is at least one and one-tenth (1.1) but less than one and three-tenths (1.3), the school corporation's target pupil/teacher ratio is fifteen (15) plus the result determined in item (iii) to one (1):
                (i) Determine the result of one and three-tenths (1.3) minus the school corporation's complexity index.
                (ii) Determine the item (i) result divided by two-tenths (0.2).
                (iii) Determine the item (ii) result multiplied by three (3).
            (C) If the school corporation's complexity index is at least one and three-tenths (1.3), the school corporation's target pupil/teacher ratio is fifteen to one (15:1).
        STEP TWO: Determine the result of:
            (A) the ADM of the school corporation in kindergarten through grade 3 for the current school year; divided by
            (B) the school corporation's applicable target pupil/teacher ratio, as determined in STEP ONE.
        STEP THREE: Determine the result of:
            (A) the basic tuition support for the year multiplied by seventy-five hundredths (0.75); divided by
            (B) the school corporation's ADM.
        STEP FOUR: Determine the result of:
            (A) the STEP THREE result; multiplied by
            (B) the ADM of the school corporation in kindergarten through grade 3 for the current school year.
        STEP FIVE: Determine the result of:
            (A) the STEP FOUR result; divided by
            (B) the staff cost amount.
        STEP SIX: Determine the greater of zero (0) or the result of:
            (A) the STEP TWO amount; minus
            (B) the STEP FIVE amount.
        STEP SEVEN: Determine the result of:
            (A) the STEP SIX amount; multiplied by
            (B) the staff cost amount.
        STEP EIGHT: Determine the greater of the STEP SEVEN amount or:
            (A) for 2012, fifty percent (50%) of the school corporation's guaranteed primetime amount; or
            (B) for 2013 and each year thereafter, zero (0).
        STEP NINE: A school corporation's amount under this STEP is the following:
            (A) If the amount the school corporation received under this chapter in the previous calendar year is greater than zero (0), the amount under this STEP is the lesser of:
                (i) the STEP EIGHT amount; or
                (ii) the amount the school corporation received under this chapter for the previous calendar year multiplied by one hundred seven and one-half percent (107.5%).
            (B) If the amount the school corporation received under this chapter in the previous calendar year is not greater than zero (0), the amount under this STEP is the STEP EIGHT amount.
SOURCE: IC 20-43-9-7; (13)IN1338.1.77. -->     SECTION 77. IC 20-43-9-7, AS ADDED BY P.L.2-2006, SECTION 166, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. A school corporation shall compile class size data for kindergarten through grade 3 and report the data to the department, or in the case of a charter school, the budget agency, for purposes of maintaining compliance with this chapter.
SOURCE: IC 20-43-9-12; (13)IN1338.1.78. -->     SECTION 78. IC 20-43-9-12, AS ADDED BY P.L.220-2011, SECTION 339, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12. (a) The department, or in the case of a charter school, the budget agency, shall adjust distributions made to a school corporation, including a charter school, after May 13, 2005, to eliminate the difference between the state primetime distribution that the school corporation, including a charter school, received as a result of IC 21-1-30-3 (as amended by P.L.224-2003, before its repeal, now codified in this chapter), and the state primetime distribution to which the school corporation, including a charter school, is entitled to receive under IC 21-1-30-3 (as amended by P.L.246-2005, before its repeal, now codified in this chapter).
    (b) The adjustments required under this section shall be made on the schedule determined by the department, of education, or in the case of a charter school, the budget agency.
SOURCE: IC 20-43-10-0.5; (13)IN1338.1.79. -->     SECTION 79. IC 20-43-10-0.5 IS REPEALED [EFFECTIVE JANUARY 1, 2014]. Sec. 0.5. This chapter does not apply to a virtual charter school.
SOURCE: ; (13)IN1338.1.80. -->     SECTION 80. [EFFECTIVE JULY 1, 2013] (a) The definitions in IC 20-18-2 apply throughout this SECTION.
    (b) The department shall provide any information, as well as assistance, necessary for the budget agency to administer:
        (1) IC 20-24-7, IC 20-24-7.5, and IC 20-24-12, all as amended by this act; and
        (2) provisions in IC 20-43 concerning charter schools, as amended by this act.

    (c) All powers, duties, and responsibilities of the department pertaining to the administration of IC 20-24-7, IC 20-24-7.5, and IC 20-24-12, and pertaining to the administration of IC 20-43 concerning charter schools, transfer to the budget agency on July 1, 2013. The transfer of powers, duties, and responsibilities from the department to the budget agency under IC 20-24-7, IC 20-24-7.5, and IC 20-24-12, and IC 20-43 concerning charter schools, all amended by this act, does not affect:
        (1) rights or liabilities accrued; or
        (2) rules that were adopted by the department.

     (d) This SECTION expires July 1, 2014.
SOURCE: ; (13)IN1338.1.81. -->     SECTION 81. An emergency is declared for this act.