Introduced Version






HOUSE BILL No. 1339

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 5-1.4-1-10; IC 20-24; IC 20-26-5-4; IC 20-28; IC 20-29; IC 34-11-2-14.

Synopsis: Various education matters. Replaces references, when referring to a charter school, to the term "sponsor" with the term "authorizer". Repeals the current definition of sponsor. Provides that the department of education (department) shall keep on its Internet web site charter school page: (1) demographic and performance data required from school corporations according to each authorizer's performance framework; and (2) an annual list of all charter schools, with corresponding authorizers and the school improvement designation earned by each charter school. Provides that a virtual charter school is defined as a charter school that provides more than 90% of its instruction through virtual distance learning or online technologies. (Current law provides that a virtual charter school is a charter school that provides more than 50% of its instruction through virtual distance learning or online technologies.) Removes a requirement that the department must submit an annual report to the budget committee concerning virtual charter schools. Provides that a charter school is subject to graduation rate calculation requirements. Removes a provision that a teacher serving under a regular contract at a laboratory school who transfers to a school corporation that is a party to the agreement with the university operating the laboratory school is entitled to receive credit for the years served at the laboratory school for purposes of meeting the five year requirement for an indefinite contract. Removes a provision that a laboratory school teacher's contract with a school corporation is an indefinite contract if the teacher has served five years at a laboratory school. Provides notice procedures for the cancellation of a principal's or superintendent's contract. Provides that a principal may request a private meeting with

(Continued next page)

Effective: July 1, 2011 (retroactive); July 1, 2013.





Behning




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





Digest Continued

the superintendent within five days after the principal receives notice of a contract cancellation. Provides that a superintendent may request a private meeting with the president of the governing body within five days after the principal receives notice of a contract cancellation. Provides that the superintendent or the president of the governing body shall make a written recommendation to the governing body regarding the contract cancellation. Provides that a superintendent or a principal may have a representative accompany the superintendent or principal to the private conference. Repeals a provision that provides that a teacher contract continues in force following the date of the contract's termination, until the school corporation refuses to continue the contract, the teacher resigns, or the contract is replaced. Provides that a teacher contract entered into after August 1 is void if the teacher is bound by a previous contract to teach in a public school. (Current law provides that the contract is void after August 15.) Resolves conflict in IC 20-28-9-1, which was amended by P.L.229-2011, SEC. 175 and repealed by P.L.48-2011, SEC. 39. Provides that, beginning after June 30, 2013, a teacher who does not receive a raise or increment may file a request for a private meeting with the superintendent if the teacher received a rating of improvement necessary or ineffective. Provides that, after June 30, 2013, a local salary schedule must include the salary schedule framework under which two or more of the four permissible salary factors combine to determine increases, increments, or raises for a teacher. Provides that after June 30, 2013, a school corporation's noncompliance with the salary schedule requirements must be reported by the: (1) department; (2) state board of accounts; and (3) Indiana education employment relations board (board). Provides that the establishment of a voluntary sick day bank may be collectively bargained for. Provides that certain salary reductions are not subject to collective bargaining. Makes changes to the procedure for conducting a hearing for a teacher suspended without pay. Makes changes relating to staff performance evaluations for evaluations of principals or superintendents. Provides that a charter school, a virtual charter school, or a school that participates in the choice scholarship program may not use a staff performance evaluation based on certain models. Provides that a certified employee must receive a rating of either ineffective or improvement necessary if, after completing a remediation plan, deficiencies noted in the certificated employee's evaluation are not corrected. Provides that a model evaluation plan developed by the department after January 31, 2012, must be approved by the state board and published on the department's Internet web site. Provides that a provision relating to the appointment by an exclusive representative of a percentage of teacher positions on a district-wide or school-wide committee applies to all discussion committees. Provides that with regards to collective bargaining mediation, each party shall pay its costs of mediation to the board. Removes a provision that provides that a school employer may issue tentative individual contracts if an agreement has not been reached. Provides that the duration of the right to bring suit for an unfair practice against a school employer or school employee organization is three years. Adds a provision that allows a hearing examiner or agent of the board to assign the costs of the hearing in proportion to the liability of the parties. Provides that the factfinding process in an impasse proceeding may not exceed 30 days. Reduces the time, from five years to two years, in which a person who has served as a mediator between a school corporation and an exclusive representative may serve as a factfinder in an impasse proceeding.



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. 1339



    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 5-1.4-1-10; (13)IN1339.1.1. -->     SECTION 1. IC 5-1.4-1-10, AS AMENDED BY P.L.119-2012, SECTION 13, IS AMENDED TO READ AS FOLLOWS: Sec. 10. "Qualified entity" means the following:
        (1) A city.
        (2) A county.
        (3) A special taxing district located wholly within a county.
        (4) Any entity whose tax levies are subject to review and modification by a city-county legislative body under IC 36-3-6-9.
        (5) A political subdivision (as defined in IC 36-1-2-13) that is located wholly within a county:
            (A) that has a population of:
                (i) more than four hundred thousand (400,000) but less than seven hundred thousand (700,000); or
                (ii) more than two hundred fifty thousand (250,000) but less than two hundred seventy thousand (270,000); or
            (B) containing a city that:
                (i) is described in section 5(3) of this chapter; and
                (ii) has a public improvement bond bank under this article.
        (6) A charter school established under IC 20-24 that is sponsored authorized by the executive of a consolidated city.
        (7) Any authority created under IC 36 that leases land or facilities to any qualified entity listed in subdivisions (1) through (6).
SOURCE: IC 20-24-1-2.5; (13)IN1339.1.2. -->     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)IN1339.1.3. -->     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)IN1339.1.4. -->     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)IN1339.1.5. -->     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.
    (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.

SOURCE: IC 20-24-2.1-2; (13)IN1339.1.6. -->     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)IN1339.1.7. -->     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 according to each authorizer's performance framework.
        (6) An annual list of all charter schools, with corresponding authorizer of and the school improvement designation described in IC 20-31-8-3 earned by each charter school. The list must be updated annually not later than thirty (30) days

after the department releases the school improvement designations.

SOURCE: IC 20-24-2.2-2; (13)IN1339.1.8. -->     SECTION 8. 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.
SOURCE: IC 20-24-2.2-3; (13)IN1339.1.9. -->     SECTION 9. 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 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 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.
        (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.
    (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)IN1339.1.10. -->     SECTION 10. 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 20-24-3-1; (13)IN1339.1.11. -->     SECTION 11. 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)IN1339.1.12. -->     SECTION 12. 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)IN1339.1.13. -->     SECTION 13. 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)IN1339.1.14. -->     SECTION 14. IC 20-24-3-5, AS ADDED BY P.L.1-2005, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) This section applies only to a sponsor an authorizer that is the executive of a consolidated city.
    (b) Before issuing a charter, the sponsor authorizer 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 authorizer may issue charters for charter schools located in the consolidated city.
SOURCE: IC 20-24-3-5.5; (13)IN1339.1.15. -->     SECTION 15. 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)IN1339.1.16. -->     SECTION 16. 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 20-24-3-9; (13)IN1339.1.17. -->     SECTION 17. 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)IN1339.1.18. -->     SECTION 18. 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)IN1339.1.19. -->     SECTION 19. 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)IN1339.1.20. -->     SECTION 20. 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)IN1339.1.21. -->     SECTION 21. 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)IN1339.1.22. -->     SECTION 22. 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)IN1339.1.23. -->     SECTION 23. 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)IN1339.1.24. -->     SECTION 24. 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)IN1339.1.25. -->     SECTION 25. 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 20-24-6-8; (13)IN1339.1.26. -->     SECTION 26. 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 20-24-7-4; (13)IN1339.1.27. -->     SECTION 27. 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 authorization 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. The requesting party shall pay the costs of the review.

SOURCE: IC 20-24-7-6.5; (13)IN1339.1.28. -->     SECTION 28. 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)IN1339.1.29. -->     SECTION 29. 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)IN1339.1.30. -->     SECTION 30. 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)IN1339.1.31. -->     SECTION 31. 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 shall carry out a program to identify all federal funds for which a charter school is eligible.
    (b) The department 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 from a sponsor an authorizer that a charter has been approved, the department shall immediately inform the organizer of the organizer's potential eligibility for federal charter school start-up grants.
    (d) The department shall distribute federal charter school start-up grants to eligible organizers in a timely manner according to the department's published guidelines for distributing the grants.
    (e) The department 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 20-24-7-13; (13)IN1339.1.32. -->     SECTION 32. 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 ninety percent (50%) (90%) 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, 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.
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) (e) The department shall adopt rules under IC 4-22-2 to govern the operation of virtual charter schools.
    (e) Beginning in 2009, the department shall before December 1 of each year submit an annual report to the budget committee concerning the program under this section.
    (f) (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 20-24-8-3; (13)IN1339.1.33. -->     SECTION 33. 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 20-24-8-5; (13)IN1339.1.34. -->     SECTION 34. IC 20-24-8-5, AS AMENDED BY P.L.160-2012, SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. The following statutes and rules and guidelines adopted under the following statutes apply to a charter school:
        (1) IC 5-11-1-9 (required audits by the state board of accounts).
        (2) IC 20-39-1-1 (unified accounting system).
        (3) IC 20-35 (special education).
        (4) IC 20-26-5-10 (criminal history).
        (5) IC 20-26-5-6 (subject to laws requiring regulation by state agencies).
         (6) IC 20-26-13 (graduation rate determination).
        (6) (7) IC 20-28-10-12 (nondiscrimination for teacher marital status).
        (7) (8) IC 20-28-10-14 (teacher freedom of association).
        (8) (9) IC 20-28-10-17 (school counselor immunity).
        (9) (10) For conversion charter schools only, IC 20-28-6, IC 20-28-7.5, IC 20-28-8, IC 20-28-9, and IC 20-28-10.
        (10) (11) IC 20-33-2 (compulsory school attendance).
        (11) (12) IC 20-33-3 (limitations on employment of children).
        (12) (13) IC 20-33-8-19, IC 20-33-8-21, and IC 20-33-8-22 (student due process and judicial review).
        (13) (14) IC 20-33-8-16 (firearms and deadly weapons).
        (14) (15) IC 20-34-3 (health and safety measures).
        (15) (16) IC 20-33-9 (reporting of student violations of law).
        (16) (17) IC 20-30-3-2 and IC 20-30-3-4 (patriotic commemorative observances).
        (17) (18) IC 20-31-3, IC 20-32-4, IC 20-32-5, IC 20-32-8, and IC 20-32-8.5, as provided in IC 20-32-8.5-2(b) (academic standards, accreditation, assessment, and remediation).
        (18) (19) IC 20-33-7 (parental access to education records).
        (19) (20) IC 20-31 (accountability for school performance and improvement).
        (20) (21) IC 20-30-5-19 (personal financial responsibility instruction).
SOURCE: IC 20-24-9-1; (13)IN1339.1.35. -->     SECTION 35. IC 20-24-9-1, AS AMENDED BY P.L.91-2011, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. A sponsor An authorizer 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)IN1339.1.36. -->     SECTION 36. IC 20-24-9-2, AS AMENDED BY P.L.91-2011, SECTION 22, IS AMENDED TO READ AS FOLLOWS [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 authorized school.
        (2) A description of the educational methods and teaching methods employed for each sponsored authorized school.
        (3) Attendance rates for each sponsored authorized school.
        (4) Graduation rates (if appropriate), including attainment of Core 40 and academic honors diplomas for each sponsored authorized school.
        (5) Student enrollment data for each sponsored authorized 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)IN1339.1.37. -->     SECTION 37. 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)IN1339.1.38. -->     SECTION 38. 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)IN1339.1.39. -->     SECTION 39. 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 20-24-11-1; (13)IN1339.1.40. -->     SECTION 40. 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 20-26-5-4; (13)IN1339.1.41. -->     SECTION 41. IC 20-26-5-4, AS AMENDED BY P.L.145-2012, SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011 (RETROACTIVE)]: Sec. 4. In carrying out the school purposes of a school corporation, the governing body acting on the school corporation's behalf has the following specific powers:
        (1) In the name of the school corporation, to sue and be sued and to enter into contracts in matters permitted by applicable law. However, a governing body may not use funds received from the state to bring or join in an action against the state, unless the governing body is challenging an adverse decision by a state agency, board, or commission.
        (2) To take charge of, manage, and conduct the educational affairs

of the school corporation and to establish, locate, and provide the necessary schools, school libraries, other libraries where permitted by law, other buildings, facilities, property, and equipment.
        (3) To appropriate from the school corporation's general fund an amount, not to exceed the greater of three thousand dollars ($3,000) per budget year or one dollar ($1) per pupil, not to exceed twelve thousand five hundred dollars ($12,500), based on the school corporation's previous year's ADM, to promote the best interests of the school corporation through:
            (A) the purchase of meals, decorations, memorabilia, or awards;
            (B) provision for expenses incurred in interviewing job applicants; or
            (C) developing relations with other governmental units.
        (4) To:
            (A) Acquire, construct, erect, maintain, hold, and contract for construction, erection, or maintenance of real estate, real estate improvements, or an interest in real estate or real estate improvements, as the governing body considers necessary for school purposes, including buildings, parts of buildings, additions to buildings, rooms, gymnasiums, auditoriums, playgrounds, playing and athletic fields, facilities for physical training, buildings for administrative, office, warehouse, repair activities, or housing school owned buses, landscaping, walks, drives, parking areas, roadways, easements and facilities for power, sewer, water, roadway, access, storm and surface water, drinking water, gas, electricity, other utilities and similar purposes, by purchase, either outright for cash (or under conditional sales or purchase money contracts providing for a retention of a security interest by the seller until payment is made or by notes where the contract, security retention, or note is permitted by applicable law), by exchange, by gift, by devise, by eminent domain, by lease with or without option to purchase, or by lease under IC 20-47-2, IC 20-47-3, or IC 20-47-5.
            (B) Repair, remodel, remove, or demolish, or to contract for the repair, remodeling, removal, or demolition of the real estate, real estate improvements, or interest in the real estate or real estate improvements, as the governing body considers necessary for school purposes.
            (C) Provide for conservation measures through utility

efficiency programs or under a guaranteed savings contract as described in IC 36-1-12.5.
        (5) To acquire personal property or an interest in personal property as the governing body considers necessary for school purposes, including buses, motor vehicles, equipment, apparatus, appliances, books, furniture, and supplies, either by cash purchase or under conditional sales or purchase money contracts providing for a security interest by the seller until payment is made or by notes where the contract, security, retention, or note is permitted by applicable law, by gift, by devise, by loan, or by lease with or without option to purchase and to repair, remodel, remove, relocate, and demolish the personal property. All purchases and contracts specified under the powers authorized under subdivision (4) and this subdivision are subject solely to applicable law relating to purchases and contracting by municipal corporations in general and to the supervisory control of state agencies as provided in section 6 of this chapter.
        (6) To sell or exchange real or personal property or interest in real or personal property that, in the opinion of the governing body, is not necessary for school purposes, in accordance with IC 20-26-7, to demolish or otherwise dispose of the property if, in the opinion of the governing body, the property is not necessary for school purposes and is worthless, and to pay the expenses for the demolition or disposition.
        (7) To lease any school property for a rental that the governing body considers reasonable or to permit the free use of school property for:
            (A) civic or public purposes; or
            (B) the operation of a school age child care program for children who are at least five (5) years of age and less than fifteen (15) years of age that operates before or after the school day, or both, and during periods when school is not in session;
        if the property is not needed for school purposes. Under this subdivision, the governing body may enter into a long term lease with a nonprofit corporation, community service organization, or other governmental entity, if the corporation, organization, or other governmental entity will use the property to be leased for civic or public purposes or for a school age child care program. However, if payment for the property subject to a long term lease is made from money in the school corporation's debt service fund, all proceeds from the long term lease must be deposited in the school corporation's debt service fund so long as payment for the

property has not been made. The governing body may, at the governing body's option, use the procedure specified in IC 36-1-11-10 in leasing property under this subdivision.
        (8) To:
            (A) Employ, contract for, and discharge superintendents, supervisors, principals, teachers, librarians, athletic coaches (whether or not they are otherwise employed by the school corporation and whether or not they are licensed under IC 20-28-5), business managers, superintendents of buildings and grounds, janitors, engineers, architects, physicians, dentists, nurses, accountants, teacher aides performing noninstructional duties, educational and other professional consultants, data processing and computer service for school purposes, including the making of schedules, the keeping and analyzing of grades and other student data, the keeping and preparing of warrants, payroll, and similar data where approved by the state board of accounts as provided below, and other personnel or services as the governing body considers necessary for school purposes.
            (B) Fix and pay the salaries and compensation of persons and services described in this subdivision that are consistent with IC 20-28-9-1. IC 20-28-9-1.5.
            (C) Classify persons or services described in this subdivision and to adopt schedules of salaries or compensation that are consistent with IC 20-28-9-1. IC 20-28-9-1.5.
            (D) Determine the number of the persons or the amount of the services employed or contracted for as provided in this subdivision.
            (E) Determine the nature and extent of the duties of the persons described in this subdivision.
        The compensation, terms of employment, and discharge of teachers are, however, subject to and governed by the laws relating to employment, contracting, compensation, and discharge of teachers. The compensation, terms of employment, and discharge of bus drivers are subject to and governed by laws relating to employment, contracting, compensation, and discharge of bus drivers. The forms and procedures relating to the use of computer and data processing equipment in handling the financial affairs of the school corporation must be submitted to the state board of accounts for approval so that the services are used by the school corporation when the governing body determines that it is in the best interest of the school corporation while at the same

time providing reasonable accountability for the funds expended.
        (9) Notwithstanding the appropriation limitation in subdivision (3), when the governing body by resolution considers a trip by an employee of the school corporation or by a member of the governing body to be in the interest of the school corporation, including attending meetings, conferences, or examining equipment, buildings, and installation in other areas, to permit the employee to be absent in connection with the trip without any loss in pay and to reimburse the employee or the member the employee's or member's reasonable lodging and meal expenses and necessary transportation expenses. To pay teaching personnel for time spent in sponsoring and working with school related trips or activities.
        (10) Subject to IC 20-27-13, to transport children to and from school, when in the opinion of the governing body the transportation is necessary, including considerations for the safety of the children and without regard to the distance the children live from the school. The transportation must be otherwise in accordance with applicable law.
        (11) To provide a lunch program for a part or all of the students attending the schools of the school corporation, including the establishment of kitchens, kitchen facilities, kitchen equipment, lunch rooms, the hiring of the necessary personnel to operate the lunch program, and the purchase of material and supplies for the lunch program, charging students for the operational costs of the lunch program, fixing the price per meal or per food item. To operate the lunch program as an extracurricular activity, subject to the supervision of the governing body. To participate in a surplus commodity or lunch aid program.
        (12) To purchase textbooks, to furnish textbooks without cost or to rent textbooks to students, to participate in a textbook aid program, all in accordance with applicable law.
        (13) To accept students transferred from other school corporations and to transfer students to other school corporations in accordance with applicable law.
        (14) To make budgets, to appropriate funds, and to disburse the money of the school corporation in accordance with applicable law. To borrow money against current tax collections and otherwise to borrow money, in accordance with IC 20-48-1.
        (15) To purchase insurance or to establish and maintain a program of self-insurance relating to the liability of the school corporation or the school corporation's employees in connection

with motor vehicles or property and for additional coverage to the extent permitted and in accordance with IC 34-13-3-20. To purchase additional insurance or to establish and maintain a program of self-insurance protecting the school corporation and members of the governing body, employees, contractors, or agents of the school corporation from liability, risk, accident, or loss related to school property, school contract, school or school related activity, including the purchase of insurance or the establishment and maintenance of a self-insurance program protecting persons described in this subdivision against false imprisonment, false arrest, libel, or slander for acts committed in the course of the persons' employment, protecting the school corporation for fire and extended coverage and other casualty risks to the extent of replacement cost, loss of use, and other insurable risks relating to property owned, leased, or held by the school corporation. In accordance with IC 20-26-17, to:
            (A) participate in a state employee health plan under IC 5-10-8-6.6 or IC 5-10-8-6.7;
            (B) purchase insurance; or
            (C) establish and maintain a program of self-insurance;
        to benefit school corporation employees, including accident, sickness, health, or dental coverage, provided that a plan of self-insurance must include an aggregate stop-loss provision.
        (16) To make all applications, to enter into all contracts, and to sign all documents necessary for the receipt of aid, money, or property from the state, the federal government, or from any other source.
        (17) To defend a member of the governing body or any employee of the school corporation in any suit arising out of the performance of the member's or employee's duties for or employment with, the school corporation, if the governing body by resolution determined that the action was taken in good faith. To save any member or employee harmless from any liability, cost, or damage in connection with the performance, including the payment of legal fees, except where the liability, cost, or damage is predicated on or arises out of the bad faith of the member or employee, or is a claim or judgment based on the member's or employee's malfeasance in office or employment.
        (18) To prepare, make, enforce, amend, or repeal rules, regulations, and procedures:
            (A) for the government and management of the schools, property, facilities, and activities of the school corporation, the

school corporation's agents, employees, and pupils and for the operation of the governing body; and
            (B) that may be designated by an appropriate title such as "policy handbook", "bylaws", or "rules and regulations".
        (19) To ratify and approve any action taken by a member of the governing body, an officer of the governing body, or an employee of the school corporation after the action is taken, if the action could have been approved in advance, and in connection with the action to pay the expense or compensation permitted under IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and IC 20-48-1 or any other law.
        (20) To exercise any other power and make any expenditure in carrying out the governing body's general powers and purposes provided in this chapter or in carrying out the powers delineated in this section which is reasonable from a business or educational standpoint in carrying out school purposes of the school corporation, including the acquisition of property or the employment or contracting for services, even though the power or expenditure is not specifically set out in this chapter. The specific powers set out in this section do not limit the general grant of powers provided in this chapter except where a limitation is set out in IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and IC 20-48-1 by specific language or by reference to other law.

SOURCE: IC 20-28-6-9; (13)IN1339.1.42. -->     SECTION 42. IC 20-28-6-9, AS AMENDED BY P.L.2-2007, SECTION 218, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. (a) A teacher serving under a regular contract at a laboratory school operated under IC 20-24.5-2 who is offered and accepts a position in the local school corporation that is a party to the agreement with the university operating the laboratory school is entitled to
        (1) transfer to the local school corporation any years served as a regular teacher at the laboratory school. and
        (2) receive credit for the years in meeting the five (5) year requirement for an indefinite contract contained in section 8 of this chapter.
    (b) If the teacher accepting a position with the local school corporation has served as a regular teacher at the laboratory school for at least five (5) successive years, the teacher's contract with the local school corporation is an indefinite contract under section 8 of this chapter.
SOURCE: IC 20-28-7.5-1; (13)IN1339.1.43. -->     SECTION 43. IC 20-28-7.5-1, AS ADDED BY P.L.90-2011, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

JULY 1, 2011 (RETROACTIVE)]: Sec. 1. (a) This chapter applies to a teacher in a school corporation (as defined in IC 20-18-2-16(a)).
    (b) A principal may decline to continue a probationary teacher's contract under sections 2 through 4 of this chapter if the probationary teacher:
        (1) receives an ineffective designation on a performance evaluation under IC 20-28-11.5;
        (2) receives two (2) consecutive improvement necessary ratings on a performance evaluation under IC 20-28-11.5; or
        (3) is subject to a justifiable decrease in the number of teaching positions or any reason relevant to the school corporation's interest.
    (c) Except as provided in subsection (e), a principal may not decline to continue a professional or established teacher's contract unless the teacher is subject to a justifiable decrease in the number of teaching positions.
    (d) After June 30, 2012, the cancellation of teacher's contracts due to a justifiable decrease in the number of teaching positions shall be determined on the basis of performance rather than seniority. In cases where teachers are placed in the same performance category, any of the items in IC 20-28-9-1(b) IC 20-28-9-1.5(b) may be considered.
    (e) A contract with a teacher may be canceled immediately in the manner set forth in sections 2 through 4 of this chapter for any of the following reasons:
        (1) Immorality.
        (2) Insubordination, which means a willful refusal to obey the state school laws or reasonable rules adopted for the governance of the school building or the school corporation.
        (3) Justifiable decrease in the number of teaching positions.
        (4) Incompetence, including receiving:
            (A) an ineffective designation on two (2) consecutive performance evaluations under IC 20-28-11.5; or
            (B) an ineffective designation or improvement necessary rating in three (3) years of any five (5) year period.
        (5) Neglect of duty.
        (6) A conviction for an offense listed in IC 20-28-5-8(c).
        (7) Other good or just cause.

SOURCE: IC 20-28-7.5-2; (13)IN1339.1.44. -->     SECTION 44. IC 20-28-7.5-2, AS ADDED BY P.L.90-2011, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. (a) Before a an administrator or teacher is refused continuation of the administrator's or teacher's contract, the administrator or teacher has the following rights:
        (1) The:
             (A) principal shall notify the a teacher of the principal's preliminary decision regarding discontinuation of the teacher's contract;
             (B) governing body shall, in accordance with IC 20-28-8-3, notify a principal of the governing body's preliminary decision regarding discontinuation of the principal's contract; and
            (C) governing body shall, in accordance with IC 20-28-8-7, notify a superintendent of the governing body's preliminary decision regarding discontinuation of the superintendent's contract.

        The notification must be (A) in writing and (B) must be delivered in person or mailed by registered or certified mail to the teacher at the teacher's last known address of the teacher, principal, or superintendent.
        (2) The notice in subdivision (1) must include a written statement, subject to IC 5-14-3-4, giving the reasons for the preliminary decision.
        (3) Notification due to a reduction in force must be delivered between May 1 and July 1.
    (b) For a cancellation of a teacher's contract for a reason other than a reduction in force, the notice required under subsection (a)(1) must inform the teacher that, not later than five (5) days after the teacher's receipt of the notice, the teacher may request a private conference with the superintendent. The superintendent must set the requested meeting not later than ten (10) days after the request.
     (c) For a cancellation of a principal's contract for a reason other than a reduction in force, the notice required under subsection (a)(1) must inform the principal that, not later than five (5) days after the principal's receipt of the notice, the principal may request a private conference with the superintendent. The superintendent must set the requested meeting not later than ten (10) days after the request.
    (d) For a cancellation of a superintendent's contract for a reason other than a reduction in force, the notice required under subsection (a)(1) must inform the superintendent that, not later than five (5) days after the superintendent's receipt of the notice, the superintendent may request a private conference with the president of the governing body. The president of the governing body must set the requested meeting not later than ten (10) days after the request.

    (c) (e) At the a conference between the superintendent and the teacher, under subsection (b), (c), or (d), the teacher, principal, or superintendent who requested the conference may be accompanied by a representative.
    (d) (f) After the a conference between the superintendent and the teacher under subsection (b) or (c), the superintendent shall make a written recommendation to the governing body of the school corporation regarding the cancellation of the teacher's or principal's contract.
     (g) After a conference under subsection (e), the president of the governing body shall make a written recommendation to the governing body of the school corporation regarding the cancellation of the superintendent's contract.
    (e) (h) If the a teacher, principal, or superintendent does not request a conference under subsection (b), this section, the principal's preliminary decision regarding the discontinuation of the teacher's, principal's, or superintendent's contract referred to in subsection (a) is considered final.
    (f) (i) For items listed in section (1)(e)(3), (1)(e)(4), or (1)(e)(6) of this chapter, if the teacher, principal, or superintendent files a request with the governing body for an additional private conference not later than five (5) days after the initial private conference with the superintendent or, for a private conference under subsection (e), with the president of the governing body, the teacher, principal, or superintendent is entitled to an additional private conference with the governing body before the governing body makes a final decision, which must be in writing, concerning the cancellation of the teacher's, principal's, or superintendent's contract.
    (g) (j) For items listed in section (1)(e)(1), (1)(e)(2), (1)(e)(5), or (1)(e)(7) of this chapter, if, not later than five (5) days after the initial private conference with the superintendent or, for a private conference under subsection (e), with the president of the governing body, the teacher, principal, or superintendent files a request with the governing body for an additional private conference, the teacher, principal, or superintendent is entitled to an additional private conference with the governing body before the governing body makes a final decision. The final decision must be in writing and must be made not more than thirty (30) days after the governing body receives the teacher's, principal's, or superintendent's request for the additional private conference. At the private conference the governing body shall do the following:
        (1) Allow the teacher, principal, or superintendent to present

evidence to refute the reason or reasons for contract cancellation and supporting evidence provided by the school corporation. Any evidence presented at the private conference must have been exchanged by the parties at least seven (7) days before the private conference.
        (2) Consider whether a preponderance of the evidence supports the cancellation of the teacher's, principal's, or superintendent's contract.

SOURCE: IC 20-28-7.5-3; (13)IN1339.1.45. -->     SECTION 45. IC 20-28-7.5-3, AS ADDED BY P.L.90-2011, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. At the first public meeting following a private conference with:
        (1) the governing body under section 2(f) 2(i) of this chapter; or
        (2) the superintendent or president of the governing body under section 2(b), 2(c), or 2(d) of this chapter, if no conference with the governing body is requested;
the governing body may cancel a contract with a teacher by a majority vote evidenced by a signed statement in the minutes of the board. The decision of the governing body is final.
SOURCE: IC 20-28-7.5-6; (13)IN1339.1.46. -->     SECTION 46. IC 20-28-7.5-6 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 6. A contract entered into by a teacher and a school employer continues in force on the same terms and for the same wages, unless increased under IC 20-28-9-1, for the next school term following the date of the contract's termination unless one (1) of the following occurs:
        (1) The school corporation refuses continuation of the contract under this chapter.
        (2) The teacher delivers in person or by registered or certified mail to the school corporation the teacher's written resignation.
        (3) The contract is replaced by another contract agreed to by the parties.
SOURCE: IC 20-28-7.5-7; (13)IN1339.1.47. -->     SECTION 47. IC 20-28-7.5-7, AS ADDED BY P.L.90-2011, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) This chapter shall be construed to:
        (1) limit the provisions of a collective bargaining agreement negotiated under IC 20-29; and
        (2) prohibit the negotiation of contracts that violate the requirements of this chapter and IC 20-28-9-21 through IC 20-28-9-23. IC 20-28-9-22.
    (b) This chapter prohibits a school employer and an exclusive representative (as defined in IC 20-29-2-9) from collectively bargaining contracts that alter the requirements of this chapter and IC 20-28-9-21

through IC 20-28-9-23. IC 20-28-9-22.
    (c) This chapter shall be construed to prohibit a school employer and an exclusive representative from mutually agreeing to binding arbitration concerning teacher dismissals.

SOURCE: IC 20-28-7.5-8; (13)IN1339.1.48. -->     SECTION 48. IC 20-28-7.5-8, AS ADDED BY P.L.90-2011, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. (a) This section does not apply to an individual who works at a conversion charter school (as defined in IC 20-24-1-5) for purposes of the individual's employment with the school corporation that sponsored the conversion charter school.
    (b) A contract entered into after August 15 August 1 between a school corporation and a teacher is void if the teacher, at the time of signing the contract, is bound by a previous contract to teach in a public school. However, another contract may be signed by the teacher that will be effective if the teacher:
        (1) furnishes the principal a release by the employer under the previous contract; or
        (2) shows proof that thirty (30) days written notice was delivered by the teacher to the first employer.
    (c) A principal may request from a teacher, at the time of contracting, a written statement as to whether the teacher has signed another teaching contract. However, the teacher's failure to provide the statement is not a cause for subsequently voiding the contract.
SOURCE: IC 20-28-9-1; (13)IN1339.1.49. -->     SECTION 49. IC 20-28-9-1, AS AMENDED BY P.L.229-2011, SECTION 175, IS REPEALED [EFFECTIVE JULY 1, 2011 (RETROACTIVE)]. Sec. 1. (a) This subsection takes effect July 1, 2012, or upon the expiration of a contract in existence on July 1, 2011, whichever is earlier, and governs salary increases for a teacher employed by a school corporation on or after the date this subsection takes effect. Compensation attributable to additional degrees or graduate credits earned before the effective date of the local salary schedule created under this chapter shall continue. Compensation attributable to additional degrees for which a teacher has started course work before July 1, 2011, and completed course work before September 2, 2014, shall also continue.
    (b) Increases or increments in a local salary scale must be based upon a combination of the following factors:
        (1) A combination of the following factors taken together may account for not more than thirty-three percent (33%) of the calculation used to determine a teacher's increase or increment:
            (A) The number of years of a teacher's experience.
            (B) The attainment of either:
                (i) additional content area degrees beyond the requirements for employment; or
                (ii) additional content area degrees and credit hours beyond the requirements for employment, if required under an agreement bargained under IC 20-29.
        (2) The results of an evaluation conducted under IC 20-28-11.5.
        (3) The assignment of instructional leadership roles, including the responsibility for conducting evaluations under IC 20-28-11.5.
        (4) The academic needs of students in the school corporation.
    (c) A teacher rated ineffective or improvement necessary under IC 20-28-11.5 may not receive any raise or increment for the following year if the teacher's employment contract is continued. The amount that would otherwise have been allocated for the salary increase of teachers rated ineffective or improvement necessary shall be allocated for compensation of all teachers rated effective and highly effective based on the criteria in subsection (b).
    (d) A teacher who does not receive a raise or increment under subsection (c) may file a request with the superintendent or superintendent's designee not later than five (5) days after receiving notice that the teacher received a rating of ineffective. The teacher is entitled to a private conference with the superintendent or superintendent's designee.
    (e) Not later than January 31, 2012, the department shall publish a model salary schedule that a school corporation may adopt.
    (f) Each school corporation shall submit its local salary schedule to the department. The department shall publish the local salary schedules on the department's Internet web site.
    (g) The department shall report any noncompliance of this section to the state board.
    (h) The state board shall take appropriate action to ensure compliance with this section.
    (i) This chapter may not be construed to require or allow a school corporation to decrease the salary of any teacher below the salary the teacher was earning on or before July 1, 2012, if that decrease would be made solely to conform to the new salary scale.
SOURCE: IC 20-28-9-1.5; (13)IN1339.1.50. -->     SECTION 50. IC 20-28-9-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011 (RETROACTIVE)]: Sec. 1.5. (a) This subsection applies to a contract in effect July 1, 2012, or upon the expiration of a contract in existence on July 1, 2011, whichever is earlier, and governs salary increases for a teacher employed by a school corporation on or after the date this subsection takes effect.

Compensation attributable to additional degrees or graduate credits earned before the effective date of the local salary schedule created under this chapter shall continue. Compensation attributable to additional degrees for which a teacher has started course work before July 1, 2011, and completed course work before September 2, 2014, shall also continue.
    (b) Increases or increments in a local salary scale must be based upon a combination of the following factors:
        (1) A combination of the following factors taken together may account for not more than thirty-three percent (33%) of the calculation used to determine a teacher's increase or increment:
            (A) The number of years of a teacher's experience.
            (B) The attainment of either:
                (i) additional content area degrees beyond the requirements for employment; or
                (ii) additional content area degrees and credit hours beyond the requirements for employment, if required under an agreement bargained under IC 20-29.
        (2) The results of an evaluation conducted under IC 20-28-11.5.
        (3) The assignment of instructional leadership roles, including the responsibility for conducting evaluations under IC 20-28-11.5.
        (4) The academic needs of students in the school corporation.
    (c) A teacher rated ineffective or improvement necessary under IC 20-28-11.5 may not receive any raise or increment for the following year if the teacher's employment contract is continued. The amount that would otherwise have been allocated for the salary increase of teachers rated ineffective or improvement necessary shall be allocated for compensation of all teachers rated effective and highly effective based on the criteria in subsection (b).
    (d) This subsection applies before July 1, 2013. A teacher who does not receive a raise or increment under subsection (c) may file a request with the superintendent or superintendent's designee not later than five (5) days after receiving notice that the teacher received a rating of ineffective. The teacher is entitled to a private conference with the superintendent or superintendent's designee. This subsection expires June 30, 2013.
    (e) This subsection applies after June 30, 2013. A teacher who does not receive a raise or increment under subsection (c) may file a request with the superintendent or superintendent's designee not

later than five (5) days after receiving notice that the teacher received a rating of improvement necessary or ineffective. The teacher is entitled to a private conference with the superintendent or superintendent's designee. A superintendent that does not receive a raise or increment under subsection (c) may file a request with the school board president not later than five (5) days after receiving notice that the superintendent received a rating of improvement necessary or ineffective. The superintendent is entitled to a private conference with the school board president.
    (f) Not later than January 31, 2012, the department shall publish a model salary schedule that a school corporation may adopt.
    (g) This subsection applies before July 1, 2013. Each school corporation shall submit its local salary schedule to the department. The department shall publish the local salary schedules on the department's Internet web site. This subsection expires June 30, 2013.
    (h) This subsection applies after June 30, 2013. Each school corporation shall submit its compensation model to the department by September 30 of each year. The local salary schedule should include, but is not limited to, the school corporation's salary schedule framework under which two (2) or more of the four (4) legally permissible salary factors combine to determine increases, increments, or raises for a teacher. A salary schedule must define each of the applicable salary factors and quantify the weight assigned to each salary factor. The department shall publish the local salary schedules on the department's Internet web site.
    (i) This subsection applies before July 1, 2013. The department shall report any noncompliance with this section to the state board.
    (j) This subsection applies after June 30, 2013. The:
        (1) department;
        (2) state board of accounts established under IC 5-11-1-1; and
        (3) Indiana education employment relations board established under IC 20-29-3-1;
shall report any noncompliance with this section to the state board.
    (k) The state board shall take appropriate action to ensure compliance with this section.
    (l) This chapter may not be construed to require or allow a school corporation to decrease the salary of any teacher below the salary the teacher was earning on or before July 1, 2012, if that decrease would be made solely to conform to the new salary scale.
    (m) After June 30, 2011, all rights, duties, or obligations

established under IC 20-28-9-1 before its repeal are considered rights, duties, or obligations under this section.

SOURCE: IC 20-28-9-18; (13)IN1339.1.51. -->     SECTION 51. IC 20-28-9-18, AS ADDED BY P.L.1-2005, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 18. (a) Upon a teacher's written request, a governing body shall withhold the requested amount of money from the salary of the teacher for a purpose described in subsection (c).
    (b) Upon a written request from a beneficiary of the Indiana state teachers' retirement fund, a governing body may receive a given amount of money for a purpose described in subsection (c).
    (c) The governing body shall hold the amounts described in subsections (a) and (b) and pay the amounts, as requested by the teacher or the beneficiary, to an insurance company or other agency or organization in Indiana that provides, extends, supervises, or pays for:
        (1) insurance or other protection; or
        (2) the establishment of or payment on an annuity account;
for the teacher. If a dividend accrues on a policy, the dividend shall be paid or credited to the teacher.
    (d) If less than twenty percent (20%) of the teachers employed by a governing body request payment of the amounts described in subsection (c) to a single recipient, withholding the amounts of money for insurance, dues, or other purposes is discretionary with the governing body.
     (e) This section is not subject to collective bargaining under IC 20-29-6-4.
SOURCE: IC 20-28-9-21; (13)IN1339.1.52. -->     SECTION 52. IC 20-28-9-21, AS AMENDED BY P.L.90-2011, SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 21. (a) This section and sections section 22 through 23 of this chapter apply to the suspension of a teacher without pay when the procedure for the cancellation of the teacher's contract under IC 20-28-7.5 does not apply.
    (b) A teacher may be suspended from duty without pay only for the following reasons:
        (1) Immorality.
        (2) Insubordination, which means the willful refusal to obey the state school laws or reasonable rules prescribed for the government of the school corporation.
        (3) Neglect of duty.
        (4) Substantial inability to perform teaching duties.
        (5) Good and just cause.
SOURCE: IC 20-28-9-22; (13)IN1339.1.53. -->     SECTION 53. IC 20-28-9-22, AS ADDED BY P.L.1-2005, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

JULY 1, 2013]: Sec. 22. A teacher may be suspended without pay only under the following procedure:
        (1) The teacher must be notified in writing not more than forty (40) days and not less than thirty (30) days before the date of the consideration of the date, time, and place for the consideration by the school corporation of the suspension of the teacher without pay.
        (2) The teacher shall be furnished, not later than five (5) days after a written request, a written statement of the reasons for the consideration.
        (3) The teacher may file a written request for a hearing not later than fifteen (15) days after receipt of the notice of this consideration.
        (4) If a request for a hearing is filed, the teacher must be given a hearing before the governing body on a day not earlier than five (5) days after filing the request.
        (5) The teacher must be given at least five (5) days notice of the date, time, and place of the hearing.
        (6) At the hearing, the teacher is entitled:
            (A) to a full statement of the reasons for the proposed suspension without pay; and
            (B) to be heard and to present the testimony of witnesses and other evidence bearing on the reasons for the proposed suspension without pay.
        (7) (6) A teacher may not be suspended without pay until:
            (A) the date is set for consideration of the suspension without pay;
            (B) after a hearing is held, if a hearing is requested by the teacher; and
            (C) except on the suspension of a superintendent's contract, the superintendent has given recommendations on the suspension not later than five (5) days after the school corporation makes the request for recommendations.
        (8) (7) After complying with this section, the governing body of the school corporation may suspend a teacher without pay for a reasonable time by a majority vote evidenced by a signed statement in the minutes of the board.
The vote to suspend a teacher without pay described in subdivision (8) (7) must be taken by the governing body on the date and at the time and place specified in subdivision (1).

SOURCE: IC 20-28-9-23; (13)IN1339.1.54. -->     SECTION 54. IC 20-28-9-23 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 23. The governing body may appoint an agent (who is

not an employee of the school corporation but who may be a member of the governing body or an attorney retained to administer the hearing proceedings under this section) to issue subpoenas for the attendance of witnesses for either party at the hearing under section 22 of this chapter. A subpoena issued under this section shall be:
        (1) served by the party who seeks to compel the attendance of a witness; and
        (2) upon application to the court by the party, enforced in the manner provided by law for the service and enforcement of subpoenas in a civil action.

SOURCE: IC 20-28-11.5-1; (13)IN1339.1.55. -->     SECTION 55. IC 20-28-11.5-1, AS ADDED BY P.L.90-2011, SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. As used in this chapter, "evaluator" means an individual who conducts a staff performance evaluation. The term includes may include a teacher who:
        (1) has clearly demonstrated a record of effective teaching over several years;
        (2) is approved by the principal as qualified to evaluate under the plan; and
        (3) conducts staff performance evaluations as a significant part of teacher's responsibilities.
SOURCE: IC 20-28-11.5-3; (13)IN1339.1.56. -->     SECTION 56. IC 20-28-11.5-3, AS ADDED BY P.L.172-2011, SECTION 122, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. As used in this chapter, "school corporation" includes:
        (1) a school corporation;
        (2) a school created by an interlocal agreement under IC 36-1-7;
        (3) a special education cooperative under IC 20-35-5; and
        (4) a joint career and technical education program created under IC 20-37-1.
However, for purposes of section 4(a) and 4(b) of this chapter, "school corporation" includes a charter school, a virtual charter school, an eligible school (as defined in IC 20-51-1-4.7).
SOURCE: IC 20-28-11.5-4; (13)IN1339.1.57. -->     SECTION 57. IC 20-28-11.5-4, AS ADDED BY P.L.90-2011, SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) Each school corporation shall develop a plan for annual performance evaluations for each certificated employee (as defined in IC 20-29-2-4). A school corporation shall implement the plan beginning with the 2012-2013 school year.
    (b) Instead of developing its own staff performance evaluation plan under subsection (a), a school corporation may adopt a staff performance evaluation plan that meets the requirements set forth in

this chapter or any of the following models:
        (1) A plan using master teachers or contracting with an outside vendor to provide master teachers.
        (2) the System for Teacher and Student Advancement (TAP).
        (3) The Peer Assistance and Review Teacher Evaluation System (PAR).
    (c) A plan must include the following components:
        (1) Performance evaluations for all certificated employees, conducted at least annually.
        (2) Objective measures of student achievement and growth to significantly inform the evaluation. The objective measures must include:
            (A) student assessment results from statewide assessments for certificated employees whose responsibilities include instruction in subjects measured in statewide assessments;
            (B) methods for assessing student growth for certificated employees who do not teach in areas measured by statewide assessments; and
            (C) student assessment results from locally developed assessments and other test measures for certificated employees whose responsibilities may or may not include instruction in subjects and areas measured by statewide assessments.
        (3) Rigorous measures of effectiveness, including observations and other performance indicators.
        (4) An annual designation of each certificated employee in one (1) of the following rating categories:
            (A) Highly effective.
            (B) Effective.
            (C) Improvement necessary.
            (D) Ineffective.
        (5) An explanation of the evaluator's recommendations for improvement, and the time in which improvement is expected.
        (6) A provision that a teacher who negatively affects student achievement and growth cannot receive a rating of highly effective or effective.
    (d) The evaluator shall discuss the evaluation with the certificated employee.

SOURCE: IC 20-28-11.5-6; (13)IN1339.1.58. -->     SECTION 58. IC 20-28-11.5-6, AS ADDED BY P.L.90-2011, SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6. (a) A copy of the completed evaluation, including any documentation related to the evaluation, must be provided to a certificated employee not later than seven (7) days after

the evaluation is conducted.
    (b) If a certificated employee receives a rating of ineffective or improvement necessary, the evaluator and the certificated employee shall develop a remediation plan of not more than ninety (90) school days in length to correct the deficiencies noted in the certificated employee's evaluation. The remediation plan must require the use of the certificated employee's license renewal credits in professional development activities intended to help the certificated employee achieve an effective rating on the next performance evaluation. If the principal did not conduct the performance evaluation, the principal may direct the use of the certificated employee's license renewal credits under this subsection.
     (c) If at the end of the remediation plan, the deficiencies in the certificated employee's evaluation are not corrected, the employee must receive a rating of either ineffective or improvement necessary.
    (c) (d) A teacher who receives a rating of ineffective may file a request for a private conference with the superintendent or the superintendent's designee not later than five (5) days after receiving notice that the teacher received a rating of ineffective. The teacher is entitled to a private conference with the superintendent or superintendent's designee.
    (e) A superintendent who receives a rating of improvement necessary or ineffective may file a request for a private conference with the governing body not later than five (5) days
after receiving notice that the superintendent received a rating of improvement necessary or ineffective. The superintendent is entitled to a private conference with the governing body.

SOURCE: IC 20-28-11.5-8; (13)IN1339.1.59. -->     SECTION 59. IC 20-28-11.5-8, AS AMENDED BY P.L.160-2012, SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. (a) To implement this chapter, the state board shall do the following:
        (1) Before January 31, 2012, adopt rules under IC 4-22-2 that establish:
            (A) the criteria that define each of the four categories of teacher ratings under section 4(c)(4) of this chapter;
            (B) the measures to be used to determine student academic achievement and growth under section 4(c)(2) of this chapter;
            (C) standards that define actions that constitute a negative impact on student achievement; and
            (D) an acceptable standard for training evaluators.
        (2) Before January 31, 2012, work with the department to develop

a model plan and release it to school corporations. Subsequent versions of the model plan that contain substantive changes must be approved by the state board and provided to school corporations. The subsequent version of the model plan approved by the state board must be published on the department's Internet web site.
        (3) Work with the department to ensure the availability of ongoing training on the use of the performance evaluation to ensure that all evaluators and certificated employees have access to information on the plan, the plan's implementation, and this chapter.
    (b) A school corporation may adopt the department's model plan, or any other model plan approved by the department, without the state board's approval.
    (c) A school corporation may substantially modify the model plan or develop the school corporation's own plan, if the substantially modified or developed plan meets the criteria established under this chapter. If a school corporation substantially modifies the model plan or develops its own plan, the department may request that the school corporation submit the plan to the department to ensure the plan meets the criteria developed under this chapter. If the department makes such a request, before submitting a substantially modified or new staff performance evaluation plan to the department, the governing body shall submit the staff performance evaluation plan to the teachers employed by the school corporation for a vote. If at least seventy-five percent (75%) of the voting teachers vote in favor of adopting the staff performance evaluation plan, the governing body may submit the staff performance evaluation plan to the department.
    (d) Each school corporation shall submit its staff performance evaluation plan to the department. The department shall publish the staff performance evaluation plans on the department's Internet web site. A school corporation must submit its staff performance evaluation plan to the department for approval in order to qualify for any grant funding related to this chapter.

SOURCE: IC 20-29-1-1; (13)IN1339.1.60. -->     SECTION 60. IC 20-29-1-1, AS ADDED BY P.L.1-2005, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. The general assembly declares the following:
        (1) The citizens of Indiana have a fundamental interest in the development of harmonious and cooperative relationships between school corporations and their certificated employees.
        (2) Recognition by school employers of the right of school employees to organize and acceptance of the principle and

procedure of collective bargaining between school employers and school employee organizations can alleviate various forms of strife and unrest.
        (3) The state has a basic obligation to protect the public by attempting to prevent any material interference with the normal public school educational process.
        (4) The relationship between school corporation employers and certificated school employees is not comparable to the relationship between private employers and employees for the following reasons:
            (A) A public school corporation is not operated for profit but to ensure the citizens of Indiana rights guaranteed them by the Constitution of the State of Indiana.
            (B) The obligation to educate children and the methods by which the education is effected will change rapidly with:
                (i) increasing technology;
                (ii) the needs of an advancing civilization; and
                (iii) requirements for substantial educational innovation.
            (C) The general assembly has delegated the discretion to carry out this changing and innovative educational function to the governing bodies of school corporations, composed of citizens elected or appointed under applicable law, a delegation that these bodies may not and should not bargain away.
            (D) In some situations, public school corporations have different obligations concerning certificated school employees under constitutional and statutory requirements than private employers have to their employees.

SOURCE: IC 20-29-5-7; (13)IN1339.1.61. -->     SECTION 61. IC 20-29-5-7, AS ADDED BY P.L.48-2011, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) This section does not apply to the bargaining team for the exclusive representative. applies to any and all discussion committees.
    (b) The percentage of teacher positions the exclusive representative may appoint to serve on a statutory or locally created district wide committee may not exceed the percentage of teachers in the school corporation who are members of the exclusive representative. If multiplying the number of teacher positions on the committee by the percentage of teachers in the school corporation who are members of the exclusive representative does not produce a whole number, the product must be rounded up to the nearest whole number. The percentage of positions applies to the number of teacher positions on a committee and not to the total number of positions on a committee.
    (c) The percentage of teacher positions the exclusive representative may appoint to serve on a statutory or locally created school wide committee may not exceed the percentage of teachers in the school who are members of the exclusive representative. If multiplying the number of teacher positions on the committee by the percentage of teachers in the school who are members of the exclusive representative does not produce a whole number, the product must be rounded up to the nearest whole number. The percentage of positions applies to the number of teacher positions on a committee and not to the total number of positions on a committee.
    (d) A committee to which this section applies may not address subjects of bargaining under this article. A school employer's appointment of a teacher to a committee is not an unfair practice as it relates to the appointment of the teacher committee members.
    (e) By September 15 of each school year, the local president or other officer or designee of the exclusive representative shall certify by affidavit to the school employer the number of teachers in each school and in the entire school corporation who are members of the exclusive representative.
SOURCE: IC 20-29-6-4; (13)IN1339.1.62. -->     SECTION 62. IC 20-29-6-4, AS AMENDED BY P.L.48-2011, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011 (RETROACTIVE)]: Sec. 4. (a) A school employer shall bargain collectively with the exclusive representative on the following:
        (1) Salary.
        (2) Wages.
        (3) Salary and wage related fringe benefits, including accident, sickness, health, dental, vision, life, disability, retirement benefits, and paid time off as permitted to be bargained under IC 20-28-9-11.
    (b) Salary and wages include the amounts of pay increases available to employees under the salary scale adopted under IC 20-28-9-1, IC 20-28-9-1.5, but do not include the teacher evaluation procedures and criteria, or any components of the teacher evaluation plan, rubric, or tool.
     (c) This subsection applies after June 30, 2013. The establishment of a voluntary sick day bank under IC 20-28-9-13 may be collectively bargained for under this section. However, the terms of operation or procedures of a voluntary sick day bank may not be collectively bargained for under this section.
SOURCE: IC 20-29-6-4.5; (13)IN1339.1.63. -->     SECTION 63. IC 20-29-6-4.5, AS ADDED BY P.L.48-2011, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4.5. (a) For a contract, or any part of a contract,

entered into after June 30, 2011, a school employer may not bargain collectively with the exclusive representative on the following:
        (1) The school calendar.
        (2) Teacher dismissal procedures and criteria.
        (3) Restructuring options available to a school employer under federal or state statutes, regulations, or rules because of the failure of the school corporation or a school to meet federal or state accountability standards.
        (4) The ability of a school employer to contract, partner, or operate jointly with an educational entity that provides postsecondary credits to students of the school employer or dual credits from the school employer and the educational entity.
        (5) Any subject not expressly listed in section 4 of this chapter.
    (b) A subject set forth in subsection (a) that may not be bargained collectively may not be included in an agreement entered into under this article.

SOURCE: IC 20-29-6-13; (13)IN1339.1.64. -->     SECTION 64. IC 20-29-6-13, AS AMENDED BY P.L.6-2012, SECTION 139, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 13. (a) If, at any time after at least sixty (60) days following the beginning of formal bargaining collectively between the parties, an impasse is declared, the board shall appoint a mediator from the board's staff or an ad hoc panel.
    (b) The mediator shall begin mediation within fifteen (15) days after the board receives notice of impasse.
    (c) The mediation must consist of at least one (1) but not more than three (3) mediation sessions and must result in one (1) of the following:
        (1) An agreement between the parties on the items permitted to be bargained under section 4 of this chapter.
        (2) Each party's last best offer, including fiscal rationale, related to items permitted to be bargained under section 4 of this chapter.
    (d) Costs for the mediator shall be borne equally by the parties. Not later than thirty (30) days after mediation has concluded, each party shall pay the party's costs for mediation to the Indiana education employment relations board established by IC 20-29-3-1.
    (e) Mediation shall be completed within thirty (30) days.
SOURCE: IC 20-29-6-15.1; (13)IN1339.1.65. -->     SECTION 65. IC 20-29-6-15.1, AS ADDED BY P.L.229-2011, SECTION 181, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 15.1. (a) If an agreement has not been reached on the items permitted to be bargained collectively under section 4 of this chapter, within fifteen (15) days after mediation under section 13 of this chapter has ended, the board shall initiate factfinding.
    (b) Factfinding must culminate in the factfinder imposing contract

terms on the parties. The factfinder must select one (1) party's last best offer as the contract terms. The factfinder's order must be restricted to only those items permitted to be bargained and included in the collective bargaining agreement under section 4 of this chapter and must not put the employer in a position of deficit financing (as defined in IC 20-29-2-6). The factfinder's order may not impose terms beyond those proposed by the parties in their last, best offers.
    (c) Costs for the factfinder shall be borne equally by the parties. Not later than thirty (30) days after mediation has concluded, each party shall pay the party's costs for mediation to the Indiana education employment relations board established by IC 20-29-3-1.
    (d) Factfinding may not last longer than fifteen (15) days.

SOURCE: IC 20-29-6-16; (13)IN1339.1.66. -->     SECTION 66. IC 20-29-6-16, AS AMENDED BY P.L.229-2011, SECTION 182, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 16. (a) If an agreement has not been reached on the items to be bargained collectively by November 1, as provided in IC 6-1.1-17-5, the parties shall continue the terms of the current contract that is in effect, and the school employer may issue tentative individual contracts and prepare its budget on that basis. During this period, in order to allow the successful resolution of the dispute, the school employer may not unilaterally change the terms or conditions of employment that are issues in dispute.
    (b) (a) Upon the expiration of the current contract that is in effect, the school employer shall continue under the terms of the current contract that is in effect, with no increase or increment in salary, wages, or benefits for any bargaining unit employee until a new contract is executed, unless continuation would put the school employer in a position of deficit financing due to a reduction in the employer's actual general fund revenue or an increase in an employer's expenditures when the expenditures exceed the current year actual general fund revenue.
    (c) (b) The only parts of the contract that must continue under this section are the items contained in the contract and listed in section 4 of this chapter.
    (d) (c) This section may not be construed as relieving the school employer or the school employee organization from the duty to bargain collectively until a mutual agreement has been reached and a contract entered as called for in this chapter.
SOURCE: IC 20-29-7-3; (13)IN1339.1.67. -->     SECTION 67. IC 20-29-7-3, AS ADDED BY P.L.1-2005, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. (a)This chapter does not in any way restrict the right of a:
        (1) school employer; or
        (2) school employee organization;
to bring suit for specific performance or breach of performance, or both, of a collective bargaining contract in any court having jurisdiction.
     (b) A lawsuit for specific performance or breach of a collective bargaining agreement under this chapter must be commenced in the time period set forth in IC 34-11-2-14.
SOURCE: IC 20-29-7-5; (13)IN1339.1.68. -->     SECTION 68. IC 20-29-7-5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. The hearing examiner or agent of the board that determines the matter raised in the complaint shall assign the costs of the hearing in proportion to the liability of the parties.
SOURCE: IC 20-29-8-7; (13)IN1339.1.69. -->     SECTION 69. IC 20-29-8-7, AS AMENDED BY P.L.229-2011, SECTION 183, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) When a factfinder is requested or required under IC 20-29-6, the board shall appoint a factfinder from the staff or panel established under section 6 of this chapter.
    (b) The factfinder shall make an investigation and hold hearings as the factfinder considers necessary in connection with a dispute.
    (c) The factfinder:
        (1) may restrict the factfinder's findings to those issues that the factfinder determines significant;
        (2) must restrict the findings to the items listed in IC 20-29-6-4; and
        (3) may not impose terms beyond those proposed by the parties in their last, best offers.
    (d) The factfinder may use evidence furnished to the factfinder by:
        (1) the parties;
        (2) the board;
        (3) the board's staff; or
        (4) any other state agency.
    (e) The factfinder shall conduct the factfinding hearing in public in a room or facility owned by the county or local unit of government located in the county in which the school employer is located, or if the school employer is located in more than one (1) county, in the county in which the greatest number of students who attend the school employer's schools reside. The public hearing may begin not earlier than October 1 in the first year of the state budget biennium and must be concluded by December 31 of the same year.
    (f) The factfinding process may not exceed fifteen (15) thirty (30)

days from beginning to end, and not more than two (2) of those days may be used for public testimony, which may be taken at the discretion of the factfinder. During the public hearing, each party shall present fully its last, best offer, including the fiscal rationale for the offer. Only general operating funds and those funds certified by the department of education and the department of local government finance may be considered as a source of the funding for items, unless the school funding formula allows other funds to be used for certain items.
    (g) The factfinder shall make a recommendation as to the settlement of the disputes over which the factfinder has jurisdiction.
    (h) The factfinder shall:
        (1) make the investigation, hearing, and findings as expeditiously as the circumstances permit; and
        (2) deliver the findings to the parties and to the board.
    (i) The board, after receiving the findings and recommendations, may make additional findings and recommendations to the parties based on information in:
        (1) the report; or
        (2) the board's own possession.
The board may not make any recommendations to the parties related to any items not specifically identified in IC 20-29-6-4.
    (j) At any time within five (5) days after the findings and recommendations are delivered to the board, the board may make the findings and recommendations of the factfinder and the board's additional findings and recommendations, if any, available to the public through news media and other means the board considers effective.
    (k) The board shall make the findings and recommendations described in subsection (j) available to the public not later than ten (10) days after the findings and recommendations are delivered to the board.

SOURCE: IC 20-29-8-10.1; (13)IN1339.1.70. -->     SECTION 70. IC 20-29-8-10.1, AS ADDED BY P.L.229-2011, SECTION 184, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10.1. A person who has served as a mediator in a dispute between a school employer and an exclusive representative may not serve as a factfinder in a dispute arising in the same school corporation within a period of five (5) two (2) years except by the mutual consent of the parties.
SOURCE: IC 34-11-2-14; (13)IN1339.1.71. -->     SECTION 71. IC 34-11-2-14 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 14. A lawsuit for specific performance or breach of a collective bargaining agreement under IC 20-29-7 must be commenced within three (3) years after the

date of injury, or within three (3) years after the date on which the plaintiff should have known of the injury, whichever date occurs first.

SOURCE: ; (13)IN1339.1.72. -->     SECTION 72. An emergency is declared for this act.