Indiana Education Reform Package Exposed

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The Indiana Education Reform Package was adopted by ALEC's Education Task Force at the Annual Meeting on August 5, 2011, it does not include an approval date. (Accessed on 11/30/2015).

ALEC Bill Text

Summary

The Indiana Education Reform Package is inspired by their comprehensive set of K–12 education reforms adopted by the Indiana Legislature in the spring of 2011 and signed by Governor Mitch Daniels. The components in this Act have created the nation’s largest school voucher program, among other reforms.

This bill is written as an omnibus education reform act. Some may find it most useful to introduce as an omnibus bill, while others may prefer to introduce separate measures depending upon legislative dynamics, as well as the current policies in each state.

This act incorporates several of the key reforms the Indiana Legislature passed, some of which are similar to existing ALEC model legislation, including Charter Schools Act, School Scholarships Act, and Early Graduation Scholarship Act.


Chapters of the Indiana Education Reform Package

(1) Charter Schools Act

(2) School Scholarships Act

(3) Teacher Evaluations and Licensing Act

(4) Teacher Collective Bargaining Act

(5) Turnaround Academies Act

(6) Early Graduation Scholarship Act

(7) Textbooks and Other Curricular Material Act


Chapter 1. Charter Schools Act

Section 1. {Title} This Act may be referred to as the “Charter Schools Act.”

Section 2. {Definitions}

(A) “Virtual charter school” means any charter school, including a conversion charter school, that provides for the delivery of more than fifty percent (50%) of instruction to students through:

(1) virtual distance learning;
(2) online technologies; or
(3) computer based instruction.

(B) “Charter board” refers to the [State] charter school board established under Section 3.

(C) “Fund”, for purposes of Section 19, refers to the charter school facilities assistance fund.

(D) “Program”, for purposes of Section 19, refers to the charter school facilities assistance program under Section 19.

(E) “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 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

Section 3. {State Charter School Board}

(A) The State charter school board is established for the purpose of sponsoring charter schools throughout [State].

(B) The charter board is a statewide charter school sponsor 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. The member is also entitled to reimbursement for traveling expenses and other expenses actually incurred in connection with the member’s duties as provided in the state policies and procedures established by the [State] department of administration and approved by the budget agency.

(F) Not later than December 31, 2011, the charter board, with assistance from the department, shall:

(1) establish a process to:
(a) review a proposal to establish a charter school under Section 5;
(b) make a decision on the proposal as required under [insert appropriate statute]; and
(c) monitor charter schools sponsored by the charter board; and
(2) publish guidelines concerning the review process described in subdivision (1);

(G) The department shall provide staff to carry out the duties of the charter board under this chapter until the time when the charter board begins receiving administrative fees pursuant to Section 13(E). At that time, the charter board may hire staff to carry out the duties of the charter board under this chapter.

(H) Funding for the charter board consists of administrative fees collected under Section 13.

Section 4. Monitoring and Accountability of Sponsors

(A) 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, including the sponsors’ 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.

(B) The minimum standards for renewal and the standards to avoid closure imposed by sponsors on the charter school in the charter school agreement must include a requirement that the charter school not fall within the application of a Turnaround Academy.

(C) After giving at least thirty (30) days notice, the state board may require a sponsor to appear at a hearing conducted by the state board if the sponsor has renewed a charter or failed to close a charter school that does not meet the minimum standards in the charter agreement, as posed on the department’s Internet web site.

(D) 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 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 Section 13 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 Section 13.

(E) 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, compared with the performance of students enrolled in the charter school in the immediately preceding school year.

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

Section 5. {Proposal to establish charter school; required contents}

(A) An organizer may submit to the sponsor 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 Section 9.
(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 in the previous five (5) years.
(4) The manner in which the sponsor 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) a collective bargaining agreement in a charter school where the teachers have chosen to organize under [insert appropriate code]; or
(2) an existing collective bargaining agreement for noncertificated employees (as defined in [insert appropriate code]).

Section 6. {Public hearing by sponsor}

(A) This section applies to a sponsor that is not the executive of a consolidated city.

(B) Before issuing a charter, the sponsor 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.

Section 7. {Department notification; annual report}

(A) A sponsor 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 to the legislative council.

Section 8. {Charter requirements }

(A) A charter must meet the following requirements:

(1) Be a written instrument.
(2) Be executed by a sponsor 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 and the organizer.
(6) Provide for the following:
(a) A review by the sponsor 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 and the organizer agree to renew the charter.
(7) Specify the grounds for the sponsor 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 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.
(14) Specify that records provided by the charter school to the department or sponsor 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.

(B) A charter school shall set annual performance targets in conjunction with the charter school’s sponsor. The annual performance targets shall be designed to help each school meet applicable federal, state, and sponsor expectations.

Section 9. {Admission policies}

(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. A single gender charter school must be open to any student of the gender the school serves who resides in [State].

(C) A charter school, including a conversion charter school, must be open to any student who resides in [State].

Section 10. {Limits on attendance}

(A) Except as provided in Subsections (B), (C), and (D), a charter school must enroll any eligible student who submits a timely application for enrollment.

(B) This subsection applies if the number of applications for a program, class, grade level, or building exceeds the capacity of the program, class, grade level, or building. If a charter school receives a greater number of applications than there are spaces for students, each timely applicant must be given an equal chance of admission. The organizer must determine which of the applicants will be admitted to the charter school or the program, class, grade level, or building by random drawing in a public meeting.

(C) A charter school may limit new admissions to the charter school to:

(1) ensure that a student who attends the charter school during a school year may continue to attend the charter school in subsequent years; and
(2) allow the siblings of a student who attends a charter school to attend the charter school.

(D) This subsection applies to an existing school that converts to a charter school under Section 18. During the school year in which the existing school converts to a charter school, the charter school may limit admission to:

(1) those students who were enrolled in the charter school on the date of the conversion; and
(2) siblings of students described in subdivision (1).

Section 11. {Employees; collective bargaining agreements; accrual of and financial responsibility for benefits}

(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 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 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.

Section 12. {Teachers; licensing requirements}

(A) At least ninety percent (90%) of the individuals who teach full time in a charter school must either:

(1) hold a license to teach in a public school in [State] under Section 21; or
(2) be in the process of obtaining a license to teach in a public school in [State]; unless the charter school requests and the state board approves a waiver for a lower percentage.

(B) An individual who does not qualify under subsection (a) may teach full time in a charter school if the individual meets one of the following criteria:

(1) The individual is in the process of obtaining a license to teach in a charter school in [State] under Section 21.
(2) The individual holds at least a bachelor’s degree with a grade point average of at least three (3.0) on a four (4.0) point scale from an accredited post-secondary educational institution in the content or related area in which the individual teaches. Individuals qualifying under subsection (b) may not exceed ten percent (10%) of the full time teaching staff unless the charter school requests and the state board approves a waiver for a higher percentage.

(C) An individual described in Subsection (A)(2) must complete the transition to teaching program not later than three (3) years after beginning to teach at a charter school.

(D) An individual who holds a part-time teaching position in a charter school must hold at least a bachelor’s degree with a grade point average of at least three (3.0) on a four (4.0) point scale from an accredited postsecondary educational institution in the content or related area in which the individual teaches.

(E) An individual who provides to students in a charter school a service:

(1) that is not teaching; and
(2) for which a license is required under [State] law; must have the appropriate license to provide the service in [State].

Section 13. {Costs of services provided; administrative fees}

(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 that is a state educational institution authorized to organize a charter school. In a calendar year, a state educational institution may receive from the organizer of a charter school sponsored 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.

(C) This Subsection applies to the executive of a consolidated city that sponsors a charter school. In a calendar year, the executive may collect from the organizer of a charter school sponsored 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 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 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 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 administrative fee may not include any costs incurred in delivering services that a charter school may purchase at its discretion from the sponsor. The sponsor shall use its funding provided under this section exclusively for the purpose of fulfilling sponsoring obligations.

(G) Except for oversight services, a charter school may not be required to purchase services from its sponsor 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. In that event, the charter school and sponsor 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 and any service fees to be charged to the charter school. A sponsor 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 shall provide to each charter school it sponsors an itemized accounting of the actual costs of services purchased by the charter school from the sponsor. 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.

Section 14. {Matching funds for federal grants to charter schools}

(A) If the United States Department of Education approves a new competition for states to receive matching funds for charter school facilities, the department shall pursue this federal funding.

(B) To increase the state’s opportunity to receive matching funds from the United States Department of Education, the department shall develop a facilities incentive grants program before January 1, 2010.

(C) The department shall use the priority criteria set forth in 21 U.S.C. 7221d(b) and 34 CFR 226.12 through 34 CFR 226.14 to develop the facilities incentive grants program.

Section 15. {Virtual charter schools; funding}

(A) As used in this Section, “virtual charter school” means any charter school, including a conversion charter school, that provides for the delivery of more than fifty percent (50%) of instruction to students through:

(1) virtual distance learning;
(2) online technologies; or
(3) computer based instruction.

(B) Beginning with the 2011-2012 school year, a virtual charter school may apply for sponsorship with any statewide sponsor in accordance with the sponsor’s guidelines.

(C) 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-five percent (85%) of the school’s foundation amount determined under IC 20-43-5-4; plus
(2) the total of any special education grants to which the virtual charter school is entitled.
(a) A virtual charter school is entitled to receive special education grants calculated in the same manner as special education grants are calculated for other school corporations.

(D) The department shall adopt rules 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) 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.

Section 16. {Annual report to department}

(A) A sponsor that has established a charter school shall submit an annual report to the department for informational and research purposes.

(B) An annual report under this chapter must contain the following information:

(1) Results of all standardized testing, including ISTEP program testing, end of course assessments, and any other assessments used for each sponsored school.
(2) A description of the educational methods and teaching methods employed for each sponsored school.
(3) Attendance rates for each sponsored school.
(4) Graduation rates (if appropriate), including attainment of Core 40 and academic honors diplomas for each sponsored school.
(5) Student enrollment data for each sponsored school, including the following:
(a) The number of students enrolled.
(b) The number of students expelled.
(6) Schools that closed or for which the charter was not renewed, and the reasons for the closure or nonrenewal.

Section 17. {Transfer of students; discrimination prohibited}

(A) A public noncharter school that receives a transfer student from a charter school may not discriminate against the student in any way, including by placing the student:

(1) in an inappropriate age group according to the student’s ability;
(2) below the student’s abilities; or
(3) in a class where the student has already mastered the subject matter.

(B) If a student who previously was enrolled in a charter school enrolls in another public school, the public noncharter school shall accept all credits earned by the student in courses or instructional programs at the charter school in a uniform and consistent manner, according to the same criteria that are used to accept academic credits from other public schools.

Section 18. {Conditions required for conversion}

(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 of school improvement under [insert appropriate code]for four (4) consecutive years, the governing body may not serve as that charter school’s sponsor.

(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 [State] may attend the conversion charter school.

Section 19. {Charter School Facilities Assistance Program}

(A) The charter school facilities assistance program is established. The department shall administer the program and fund.

(B) The purpose of the program is to make grants and loans to charter schools for the purpose of:

(1) constructing;
(2) purchasing;
(3) renovating;
(4) maintaining;
(5) paying first semester costs for new; and
(6) reducing common school fund debt for; charter schools.

(C) The fund consists of the following:

(1) Money appropriated or authorized by the general assembly.
(2) The repayment proceeds of loans made to charter schools from the fund.
(3) Any gifts and grants made to the fund or other money required by law to be deposited in the fund.
(4) Any federal grants that are received to capitalize or supplement the fund.
(5) Any earnings on money in the fund.

(D) The expenses of administering the fund shall be paid from money in the fund.

(E) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.

(F) The fund may be used by the department as a revolving fund for the purposes described in Subsection (B).

(G) Money in the fund at the end of a state fiscal year does not revert to the state general fund.

(H) The department may apply to the United States Department of Education for a state charter school facilities incentive program grant authorized under 34 U.S.C. 7221d(b). The department shall use the proceeds of any state charter school facilities incentive program grant awarded to the state for purposes of the program. To the extent permitted by federal law, the proceeds may be used to pay the administrative expenses of the program.

(I) The department may authorize money in the fund to be used for any of the following purposes:

(1) To pay first semester costs for charter schools first opening after June 30, 2011.
(2) To repay advances and loans to charter schools made before June 30, 2011.
(3) To match federal grants described in Section 14.
(4) To loan or grant money from the fund to a charter school to carry out the purposes described in Subsection (B).

(J) The department shall establish written procedures for providing grants or loans from the fund to charter schools. The written procedures must include at least the following:

(1) An application procedure.
(2) A procedure to identify projects that may qualify for a grant or loan.
(3) Criteria for establishing the priority of projects for which grants or loans will be made.
(4) Procedures for selecting projects for which grants or loans will be made.

(K) To apply for a grant or loan from the fund, a charter school must submit an application that contains the information required by the department.

(L) In making its determination to approve or disapprove a grant or loan application, the department may consider the following:

(1) The soundness of the financial business plans of the applicant charter school.
(2) The availability to the charter school of other sources of funding.
(3) The geographic distribution of grants or loans made from the fund.
(4) The impact that grants or loans received under this Section will have on the charter school’s receipt of other private and public financing.
(5) Plans for innovatively enhancing or leveraging funds received under this Section, such as loan guarantees or other types of credit enhancements.
(6) The financial needs of the charter school.

(M) The department may make grants or loans under this Section on a per student basis.

(N) The following apply to a loan from the fund to a charter school under this Section:

(1) A loan may not exceed the maximum amount set by the department.
(2) The term of the loan may not exceed fifteen (15) years after the date of the loan.
(3) A charter school may receive multiple loans from the fund as long as the total amount outstanding on all loans granted to the charter school from the fund do not exceed the maximum amount set by the department.
(4) The department shall determine the interest rate and other terms for the loan, subject to the approval of the state board of finance.
(5) A charter school must enter into a loan agreement with the department before receiving a loan from the fund.

(O) A charter school receiving a loan under this Section shall repay the loan from:

(1) the amount of state tuition support that the charter school is eligible to receive; and
(2) to the extent that state tuition support is insufficient to meet the debt service obligations of the charter school, other resources available to the charter school.

(P) The department shall withhold the amount of the balance of the loan due in a year on a loan made under this Section from state tuition support distributions that would otherwise be made in the year to the charter school. To the extent possible, the department shall withhold an equal amount from each installment of state tuition support distributed to the charter school. Withheld amounts reduce the balance of the loan of the charter school. The auditor of state shall transfer withheld amounts to the fund.

Section 20. {Sale of unneeded property; lease or sale to charter school; procedures}

(A) If a governing body of a school corporation determines that any real or personal property:

(1) is no longer needed for school purposes; or
(2) should, in the interests of the school corporation, be exchanged for other property; the governing body may sell or exchange the property.

(B) Money derived from the sale or exchange of property under this section shall be placed in any school fund:

(1) established under applicable law; and
(2) that the governing body considers appropriate.

(C) A governing body may not make a covenant that prohibits the sale of real property to another educational institution.

(D) This subsection does not apply to a school building that on July 1, 2011, is leased or loaned by the school corporation that owns the school building to another entity. A governing body shall make available for lease or purchase to any charter school any school building owned by the school corporation that:

(1) either:
(a) is not used in whole or in part for classroom instruction at the time the charter school seeks to lease the building; or
(b) appears on the list compiled by the department under Subsection (E); and
(2) was previously used for classroom instruction; in order for the charter school to conduct classroom instruction.

(E) Each governing body shall inform the department whenever a school building that was previously used for classroom instruction is closed, unused, or unoccupied. The department shall maintain a list of closed, unused, or unoccupied school buildings and make the list available on the department’s Internet web site. Each school corporation shall provide a list of closed, unused, or unoccupied buildings to the department by the date set by the department. The department must update the list each year before August 31.

(F) A school building that appears for the first time on the department’s list under subsection (e) shall be designated as “Unavailable until (a date two (2) years after the school building first appears on the list)” if the governing body of the school corporation that owns the school building indicates the school building may be reclaimed during that period for classroom instruction, which must begin not later than one (1) year after the school building is reclaimed. If the school building remains unused for classroom instruction one (1) year after being reclaimed, the governing body shall place the school building on the department’s list. A governing body may reclaim a school building only one (1) time under this subsection.

(G) If a charter school wishes to use a school building on the list created under subsection (e), the charter school shall send a letter of intent to the department. The department shall notify the school corporation of the charter school’s intent, and the school corporation that owns the school building shall lease the school building to the charter school for one dollar ($1) per year for as long as the charter school uses the school building for classroom instruction or for a term at the charter school’s discretion, or sell the school building to the charter school for one dollar ($1). The charter school must begin to use the school building for classroom instruction not later than two (2) years after acquiring the school building. If the school building is not used for classroom instruction within two (2) years after acquiring the school building, the school building shall be placed on the department’s list under subsection (e). If during the term of the lease the charter school closes or ceases using the school building for classroom instruction, the school building shall be placed on the department’s list under subsection (e).

(H) During the term of a lease under subsection (g), the charter school is responsible for the direct expenses related to the school building leased, including utilities, insurance, maintenance, repairs, and remodeling. The school corporation is responsible for any debt incurred for or liens that attached to the school building before the charter school leased the school building.

(I) If a school building appears on the department’s list under subsection (e) for at least forty-eight (48) months, the school corporation may sell or otherwise dispose of the school building in any manner the governing body considers appropriate.

Section 21. {Licensing program for charter school teachers}

(A) The department shall establish a program under which an individual who:

(1) wishes to teach in a charter school in [State]; and
(2) holds at least a bachelor’s degree with a grade point average of at least 3.0 on a 4.0 point scale from an accredited postsecondary institution in the content or a related area in which the individual wishes to teach; may obtain a license that allows the individual to teach in a charter school. The program must allow the individual to teach in a charter school while the individual is in the process of obtaining the license.

Section 22. {Calculation; basic tuition support}

(A) A school district’s basic tuition support for a year is the amount determined under the applicable provision of this section.

(B) This subsection applies to a school corporation that has transition to foundation revenue per adjusted ADM for a year that is not equal to the foundation amount for the year. The school corporation’s basic tuition support for a year is equal to the school corporation’s transition to foundation revenue for the year.

(C) This subsection applies to a school corporation that has transition to foundation revenue per adjusted ADM for a year that is equal to the foundation amount for the year. The school corporation’s basic tuition support for a year is the sum of the following:

(1) The foundation amount for the year multiplied by the school corporation’s adjusted ADM.
(2) The amount of the annual decrease in federal aid to impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years.

(D) This subsection applies to students of a virtual charter school who are participating in a program under Section 15. A virtual charter school’s basic tuition support for a year for those students is the amount determined under Section 15.

(A) Not later than January 1, 2012, an entity that operated under the virtual charter school pilot program under Section 15 before July 1, 2011, shall transfer its operating authority to the charter school board established by Section 3, as added by this act, unless the virtual charter school obtains another sponsor.

(B) Notwithstanding Section 15, as amended by this act, a virtual charter school chosen by the department of education to operate during the 2010-2011 school year shall continue to operate until the virtual charter school transfers its operating authority to the [State] charter school board or another sponsor.


Chapter 2. School Scholarships Act

Section 1. {Title} This Act may be referred to as the “School Scholarships Act.”

Section 2. {Definitions}

(A) “Dependent child” means an individual who:

(1) is eligible to receive a free elementary or high school education in a [State] school;
(2) qualifies as a dependent (as defined in Section 152 of the Internal Revenue Code) of the taxpayer; and
(3) is the natural or adopted child or the taxpayer or, if custody of the child has been awarded in a court proceeding to someone other than the mother or father, the court appointed guardian or custodian of the child. If the parents of a child are divorced, the term refers to the parent who is eligible to take the exemption for the child under Section 151 of the Internal Revenue Code.

(B) “Education expenditure” refers to any expenditures made in connection with enrollment, attendance, or participation of the taxpayer’s dependent child in a private elementary or high school education program. The term includes tuition, fees, computer software, textbooks, workbooks, curricula, school supplies (other than personal computers), and other written materials used primarily for academic instruction or for academic tutoring, or both.

(C) “Private elementary or high school education program” means:

(1) home schooling; or
(2) attendance at a private school;
(a) in [State] that satisfies a child’s obligation for compulsory attendance at a school. The term does not include the delivery of instructional service in a home setting to a dependent child who is enrolled in a school or a charter school.

(D) “Scholarship granting organization” refers to an organization that:

(1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; and
(2) is organized at least in part to grant school scholarships without limiting the availability of scholarships to students of only one (1) participating school.

(E) “Eligible individual” refers to an individual who:

(1) has legal settlement in [State];
(2) is at least five (5) years of age and less than twenty-two (22) years of age on the date in the school year specified in [insert appropriate code];
(3) either has been or is currently enrolled in an accredited school;
(4) is a member of a household with an annual income of not more than one hundred fifty percent (150%) of the amount required for the individual to qualify for the federal free or reduced price lunch program; and
(5) either:
(a) was enrolled in grade 1 through 12 in a school that did not charge the individual transfer tuition for at least two (2) semesters immediately preceding the first semester for which the individual receives a choice scholarship under Section 4 of this Chapter; or
(b) received a scholarship from a scholarship granting organization under Section 3 of this Chapter or a choice scholarship under Section 4 of this Chapter in a preceding school year, including a school year that does not immediately precede a school year in which the individual receives a scholarship from a scholarship granting organization Section 3 of this Chapter or a choice scholarship under Section 4 of this Chapter.

(F) “Eligible school” refers to a public or nonpublic elementary school or high school that:

(1) is located in [State];
(2) requires an eligible individual to pay tuition or transfer tuition to attend;
(3) voluntarily agrees to enroll an eligible individual;
(4) is accredited by either the state board or a national or regional accreditation agency that is recognized by the state board;
(5) administers the [State] statewide assessment; and
(6) is not a charter school or the school in which an eligible individual has legal settlement.

Section 3. {Scholarship Granting Organization – Contribution Qualification}

(A) A contribution to a scholarship granting organization shall be treated as having been made for use in a school scholarship program if:

(1) the contribution is made directly to a scholarship granting organization; and
(2) either:
(a) not later than the date of the contribution, the taxpayer designates in writing to the scholarship granting organization that the contribution is to be used only for a school scholarship program; or
(b) the scholarship granting organization provides the taxpayer with written confirmation that the contribution will be dedicated solely for use in a school scholarship program.

Section 4. {Tax Deduction}

(A) A taxpayer who makes an unreimbursed education expenditure during the taxpayer’s taxable year is entitled to a deduction against the taxpayer’s adjusted gross income in the taxable year.

(B) The amount of the deduction is:

(1) one thousand dollars ($1,000); multiplied by
(2) the number of the taxpayer’s dependent children for whom the taxpayer made education expenditures in the taxable year.

(C) A husband and wife are entitled to only one (1) deduction under this Section.

(D) To receive the deduction provided by this Section, a taxpayer must claim the deduction on the taxpayer’s annual state tax return or returns in the manner prescribed by the department.

(E) This Section applies to taxable years beginning after December 31, 2010.

Section 5. {Restrictions on certified scholarships}

(A) An agreement entered into under Section 3 of this Chapter must prohibit a scholarship granting organization from distributing school scholarships for use by an eligible student to:

(1) enroll in a school that has:
(a) paid staff or board members; or
(b) relatives of paid staff or board members; in common with the scholarship granting support organization;
(2) enroll in a school that the scholarship granting organization knows does not qualify as a participating school; or
(3) pay for the cost of education for a public school where the eligible student is entitled to enroll without the payment of tuition.

(B) An agreement entered into under Section 3 of this Chapter must prohibit a scholarship granting organization from limiting the availability of scholarships to students of only one (1) participating school. An agreement entered into under Section 1 of this Chapter before July 1, 2011, must be amended to include the requirement specified in this Subsection.

Section 6. {Choice Scholarship}

(A) It is the intent of the general assembly to honor the autonomy of nonpublic schools that choose to become eligible schools under this Chapter. A nonpublic eligible school is not an agent of the state or federal government, and therefore:

(1) the department or any other state agency may not in any way regulate the educational program of a nonpublic eligible school that accepts a choice scholarship under this Chapter, including the regulation of curriculum content, religious instruction or activities, classroom teaching, teacher and staff hiring requirements, and other activities carried out by the eligible school;
(2) the creation of the choice scholarship program does not expand the regulatory authority of the state, the state’s officers, or a school to impose additional regulation of nonpublic schools beyond those necessary to enforce the requirements of the choice scholarship program in place on July 1, 2011; and
(3) a nonpublic eligible school shall be given the freedom to provide for the educational needs of students without governmental control.

Section 7.

(A) Subject to Subsection (B), an eligible individual is entitled to a choice scholarship under this Chapter for each school year beginning after June 30, 2011, that the eligible student enrolls in an eligible school.

(B) The department may not award more than:

(1) seven thousand five hundred (7,500) choice scholarships for the school year beginning July 1, 2011, and ending June 30, 2012; and
(2) fifteen thousand (15,000) choice scholarships for the school year beginning July 1, 2012, and ending June 30, 2013. The department shall establish the standards used to allocate choice scholarships among eligible students.

Section 8.

(A) An eligible school may not discriminate on the basis of race, color, or national origin.

(B) An eligible school shall abide by the school’s written admission policy fairly and without discrimination with regard to students who:

(1) apply for; or
(2) are awarded; scholarships under this Chapter.

(C) If the number of applicants for enrollment in an eligible school under a choice scholarship exceeds the number of choice scholarships available to the eligible school, the eligible school must draw at random in a public meeting the applications of applicants who are entitled to a choice scholarship from among the applicants who meet the requirements for admission to the eligible school.

(D) The department shall, at a minimum, annually visit each eligible school and charter school to verify that the eligible school or charter school complies with the State provisions, the Constitutions of the state of [State], and the United States.

(E) Each eligible school, public school, and charter school shall grant the department full access to its premises, including access to any points of ingress to and egress from the school’s grounds, buildings, and property for observing classroom instruction and reviewing any instructional materials and curriculum.

Section 9.

(A) The maximum amount to which an eligible individual is entitled under this Chapter for a school year is equal to the least of the following:

(1) The sum of the tuition, transfer tuition, and fees required for enrollment or attendance of the eligible student at the eligible school selected by the eligible individual for a school year that the eligible individual (or the parent of the eligible individual) would otherwise be obligated to pay to the eligible school.
(2) An amount equal to:
(a) ninety percent (90%) of the state tuition support amount determined under Section 10 of this Chapter if the eligible individual is a member of a household with an annual income of not more than the amount required for the individual to qualify for the federal free or reduced price lunch program; and
(b) fifty percent (50%) of the state tuition support amount determined under Section 10 of this Chapter if the eligible individual is a member of a household with an annual income of not more than one hundred fifty percent (150%) of the amount required for the individual to qualify for the federal free or reduced price lunch program.
(3) If the eligible individual is enrolled in grade 1 through 8, the maximum choice scholarship that the eligible individual may receive for a school year is four thousand five hundred dollars ($4,500).

Section 10.

(A) The state tuition support amount to be used in Section 7(A)(2) of this Chapter for an eligible individual is the amount determined under the last STEP of the following formula:

STEP ONE: Determine the school in which the eligible individual has legal settlement.

STEP TWO: Determine the amount of state tuition support that the school identified under STEP ONE is eligible to receive for the calendar year in which the current school year begins.

STEP THREE: Determine the result of:

(1) the STEP TWO amount; divided by
(2) the current ADM, as defined in [insert appropriate code], for the school identified under STEP ONE for the calendar year used in STEP TWO.

Section 11.

(A) If an eligible individual enrolls in an eligible school for less than an entire school year, the choice scholarship provided under this Chapter for that school year shall be reduced on a prorated basis to reflect the shorter school term.

(B) An eligible individual is entitled to only one (1) choice scholarship for each school year. If the eligible individual leaves the eligible school for which the eligible individual was awarded a choice scholarship and enrolls in another eligible school, the eligible individual is responsible for the payment of any tuition required for the remainder of that school year.

Section 12.

The department may prescribe forms and methods for demonstrating eligibility for a choice scholarship under this Chapter.

Section 13.

(A) The department shall enforce the following consequences for an eligible school that is nonpublic:

(1) If the school is placed in either of the lowest two (2) categories or designations [insert appropriate code] for two (2) consecutive years, the department shall suspend choice scholarship payments for one (1) year for new students who would otherwise use a choice scholarship to attend the school.
(2) If the school is placed in either of the lowest two (2) categories or designations [insert appropriate code] for three (3) consecutive years, the department shall suspend choice scholarship payments for new students who would otherwise use a choice scholarship to attend the school until the school is placed in the middle category or higher category or designation, for two (2) consecutive years.
(3) If the school is placed in the lowest category or designation under [insert appropriate code] for three (3) consecutive years, the department shall suspend choice scholarship payments for new students who would otherwise use a choice scholarship to attend the school until the school is placed in the middle category or higher category or designation, for three (3) consecutive years.
(4) Students who:
(a) are currently enrolled at a school described in subdivision (1), (2), or (3); and
(b) qualify for a choice scholarship for the upcoming school year; may continue to receive a choice scholarship at the school.

(B) This Section may not be construed to prevent a student enrolled in a school subject to this Section from applying for a choice scholarship in the future at another participating school.

Section 14.

The department may distribute any part of a choice scholarship to the eligible individual (or the parent of the eligible individual) for the purpose of paying the educational costs described in Section 7(A)(1) of this Chapter. For the distribution to be valid, the distribution must be endorsed by both the eligible individual (or the parent of the eligible individual) and the eligible school providing educational services to the eligible individual.

Section 15.

The amount of a choice scholarship provided to an eligible individual shall not be treated as income or a resource for the purposes of qualifying for any other federal or state grant or program administered by the state or a political subdivision.


Chapter 3. Teacher Evaluations and Licensing Act

Section 1. {Title} This Act may be referred to as the “Teacher Evaluations and Licensing Act.”

Section 2. {Definitions}

(A) “School district”, for purposes of this title, means a public school district established by [State] law.

(B) “Teacher” means a professional person whose position in a school district requires certain educational preparation and licensing and whose primary responsibility is the instruction of students. The term includes the following:

(1) A superintendent.
(2) A principal.
(3) A teacher.
(4) A librarian.
(5) An individual who holds a substitute teacher’s license.
(6) An individual who provides instruction in a joint summer school program

(C) “Evaluator” means an individual who conducts a staff performance evaluation. The term includes 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.

(D) “Plan” refers to a staff performance evaluation plan developed under this Chapter.

Section 3. {Superintendent responsibilities}

(A) The superintendent is responsible for selecting and discharging principals, central office administrators, business managers, superintendents of building and grounds, janitors, physicians, dentists, nurses, athletic coaches (whether or not they are otherwise employed by the school district and whether or not they are licensed), and any other employees necessary to the operation of the school district, subject to the approval of the governing body.

(B) The superintendent and principal are responsible for selecting and discharging teachers, teachers aides, assistant principals, building administrative staff, librarians, and any other employees necessary to the operation of the school, subject to the approval of the governing body.

Section 4.

(A) After June 30, 2011, a teacher who:

(1) serves under contract as a teacher in a public school district;
(2) has not received a rating in an evaluation under Section 14 or receives a rating of ineffective in an evaluation under Section 14;
(3) has not at any time before July 1, 2012, entered into a teaching contract for further service with the school district; and
(4) has not received three (3) ratings in a five (5) year period of effective or highly effective in an evaluation under Section 14; shall be considered a probationary teacher.

(B) After June 30, 2011, a teacher who receives a rating of:

(1) effective;
(2) highly effective; or
(3) a combination of both subdivisions (1) and (2); in an evaluation under Section 14 for at least three (3) years in a five (5) year or shorter period becomes a professional teacher by entering into a contract described in Section 3 of this Chapter.

(C) A professional teacher who receives a rating of ineffective in an evaluation under Section 14 shall be considered a probationary teacher but is not subject to the cancellation of the teacher’s contract unless at least one (1) of the following criteria applies:

(1) The teacher receives a rating of ineffective in an evaluation under Section 14 in the year immediately following the teacher’s initial rating of ineffective.
(2) The teacher’s contract cancellation is due to a justifiable decrease in the number of teaching positions under Section 5(B)(3).
(3) The teacher’s contract cancellation is due to conduct set forth in Section 5(B).

Section 5. {Cancellation of Teacher Contracts}

(A) This Chapter applies to a teacher in a school district.

(B) A principal may decline to continue a probationary teacher’s contract under Sections 3 through 5 of this Chapter if the probationary teacher:

(1) receives an ineffective designation on a performance evaluation under Section 14;
(2) receives two (2) consecutive improvement necessary ratings on a performance evaluation under Section 14; or
(3) is subject to a justifiable decrease in the number of teaching positions or any reason relevant to the school district’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 Section 13(B) may be considered.

(E) A contract with a teacher may be canceled immediately in the manner set forth in Sections 3 through 5 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 district.
(3) Justifiable decrease in the number of teaching positions.
(4) Incompetence, including receiving:
(a) an ineffective designation on two (2) consecutive performance evaluations under Section 14; 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 [insert appropriate code].
(7) Other good or just cause.

Section 6.

(A) Before a teacher is refused continuation of the teacher’s contract, the teacher has the following rights:

(1) The principal shall notify the teacher of the principal’s preliminary decision. The notification must be:
(a) in writing; and
(b) delivered in person or mailed by registered or certified mail to the teacher at the teacher’s last known address.
(2) The notice in Subdivision (1) must include a written statement 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) At the conference between the superintendent and the teacher, the teacher may be accompanied by a representative.

(D) After the conference between the superintendent and the teacher, the superintendent shall make a written recommendation to the governing body of the school district regarding the cancellation of the teacher’s contract.

(E) If the teacher does not request a conference under Subsection (B), the principal’s preliminary decision is considered final.

(F) For items listed in Section 5(E)(3), 5(E)(4), or 5(E)(6) of this Chapter, if the teacher 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, the teacher 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 contract.

(G) For items listed in Section 5(E)(1), 5(E)(2), 5(E)(5), or 5(E)(7) of this Chapter, if, not later than five (5) days after the initial private conference with the superintendent, the teacher files a request with the governing body for an additional private conference, the teacher 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 request for the additional private conference. At the private conference the governing body shall do the following:

(1) Allow the teacher to present evidence to refute the reason or reasons for contract cancellation and supporting evidence provided by the school district. 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 contract.

Section 7.

(A) At the first public meeting following a private conference with:

(1) the governing body under Section 6(F) of this Chapter; or
(2) the superintendent under Section 6(B) 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.

Section 8.

Pending a final decision on the cancellation of a teacher’s contract, the teacher may be suspended from duty.

Section 9.

The time periods set out in Section 6 of this Chapter shall be extended for a reasonable period:

(1) when a teacher or school official is ill or absent from the school district; or
(2) for other reasonable cause.

Section 10.

(A) 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 Section 13, for the next school term following the date of the contract’s termination unless one (1) of the following occurs:

(1) The school district refuses continuation of the contract under this Chapter.
(2) The teacher delivers in person or by registered or certified mail to the school district the teacher’s written resignation.
(3) The contract is replaced by another contract agreed to by the parties.

Section 11.

(A) This Chapter shall be construed to:

(1) limit the provisions of a collective bargaining agreement negotiated under [insert appropriate code]; and
(2) prohibit the negotiation of contracts that violate the requirements of this Chapter.

(B) This Chapter prohibits a school employer and an exclusive representative from collectively bargaining contracts that alter the requirements of this Chapter.

(C) This Chapter shall be construed to prohibit a school employer and an exclusive representative from mutually agreeing to binding arbitration concerning teacher dismissals.

Section 12.

(A) This Section does not apply to an individual who works at a conversion charter school for purposes of the individual’s employment with the school district that sponsored the conversion charter school.

(B) A contract entered into after August 15 between a school district 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.

Section 13.

(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 district 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.

(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 [insert appropriate code].
(2) The results of an evaluation conducted under Section 14.
(3) The assignment of instructional leadership roles, including the responsibility for conducting evaluations under Section 14.
(4) The academic needs of students in the school district.

(C) A teacher rated ineffective or improvement necessary under Section 14 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 district may adopt.

(F) Each school district 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 district 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.

Section 14. {Staff Performance Evaluations}

(A) Each school district shall develop a plan for annual performance evaluations for each certificated employee. A school district 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 district 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.

Section 15.

(A) The superintendent or equivalent authority, for a school district that does not have a superintendent, may provide for evaluations to be conducted by an external provider.

(B) An individual may evaluate a certificated employee only if the individual has received training and support in evaluation skills.

Section 16.

(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) 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.

Section 17.

(A) This Section applies to any teacher instructing students.

(B) A student may not be instructed for two (2) consecutive years by two (2) consecutive teachers, each of whom was rated as ineffective under this Chapter in the school year immediately before the school year in which the student is placed in the respective teacher’s class.

(C) If a teacher did not instruct students in the school year immediately before the school year in which students are placed in the teacher’s class, the teacher’s rating under this Chapter for the most recent year in which the teacher instructed students, instead of for the school year immediately before the school year in which students are placed in the teacher’s class, shall be used in determining whether Subsection (B) applies to the teacher.

(D) If it is not possible for a school district to comply with this Section, the school district must notify the parents of each applicable student indicating the student will be placed in a classroom of a teacher who has been rated ineffective under this Chapter. The parent must be notified before the start of the second consecutive school year.

Section 18.

(A) To implement this Chapter, the state board shall do the following:

(1) Before January 31, 2012, adopt rules that establish:
(a) the criteria that define each of the four categories of teacher ratings under Section 14(B)(3) of this Chapter;
(b) the measures to be used to determine student academic achievement and growth under Section 5(B)(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 districts. Subsequent versions of the model plan that contain substantive changes must be provided to school districts.
(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 district may adopt the model plan without the state board’s approval. A school district may modify the model plan or develop the school district’s own plan, if the modified or developed plan meets the criteria established under this Chapter. If a school district modifies the model plan or develops its own plan, the department may request that the school district submit the plan to the department to ensure the plan meets the criteria developed under this Chapter. Each school district shall submit its staff performance evaluation plan to the department. The department shall publish the staff performance evaluation plans on the department’s Internet website. A school district must submit its staff performance evaluation plan to the department for approval in order to qualify for any grant funding related to this Chapter.

(C) This Subsection applies to a school district that has not adopted a staff performance evaluation plan that complies with this Chapter before July 1, 2011. Before submitting a staff performance evaluation plan to the department under Subsection (B), the governing body shall submit the staff performance evaluation plan to the teachers employed by the school district for a vote. If at least seventy-five percent (75%) of the teachers voting vote in favor of adopting the staff performance evaluation plan, the governing body may submit the staff performance evaluation plan to the department under Subsection (B).

Section 19.

(A) Before August 1 of each year, each school district shall provide the results of the staff performance evaluations, including the number of certificated employees placed in each performance category, to the department. The results provided may not include the names or any other personally identifiable information regarding certificated employees.

(B) Before September 1 of each year, the department shall report the results of staff performance evaluations to the state board, and to the public via the department’s Internet web site, for:

(1) the aggregate of certificated employees of each school and school district; and
(2) the aggregate of graduates of each teacher preparation program in [State].


Chapter 4. Teacher Collective Bargaining Act

Section 1. {Title} This Act may be referred to as the “Teacher Collective Bargaining Act.”

Section 2. {Definitions}

(A) “Wage and salary increase” means an increase in wages or salaries payable for the same or a similar position after subtracting, for all employees, any of the following received by the individual:

(1) An increase in wages or salary that is paid to an employee as a result of the employee completing licensing requirements.
(2) Health care benefit cost increases for the same or an equivalent plan that are shared by the employee and the employer in the same proportion as health care benefit costs are shared in the previous year.

(B) “Deficit financing” for a budget year means actual expenditures exceeding the employer’s current year actual general fund revenue.

Section 3.

(A) A school district and:

(1) an employee if there is no representative for that employee;
(2) the exclusive representative of its certificated employees with respect to those employees; or
(3) a labor organization representing its non-certificated employees with respect to those employees; may agree in writing to a wage payment arrangement.

(B) A wage payment arrangement under Subsection (A) may provide that compensation earned during a school year may be paid:

(1) using equal installments or any other method; and
(2) over:
(a) all or part of that school year; or
(b) any other period that begins not earlier than the first day of that school year and ends not later than thirteen (13) months after the wage payment arrangement period begins. Such an arrangement may provide that compensation earned in a calendar year is paid in the next calendar year, so long as all the compensation is paid within the thirteen (13) month period beginning with the first day of the school year.

(C) A wage payment arrangement under Subsection (A) must be structured in such a manner so that it is not considered:

(1) a non-qualified deferred compensation plan for purposes of Section 409A of the Internal Revenue Code; or
(2) deferred compensation for purposes of Section 457(f) of the Internal Revenue Code.

(D) Wage payments required under a wage payment arrangement entered into under Subsection (A) are enforceable under [insert appropriate state code].

(E) If an employee leaves employment for any reason, either permanently or temporarily, the amount due to the employee is the total amount of wages earned and unpaid.

(F) Employment with a school district may not be conditioned upon the acceptance of a wage payment arrangement under Subsection (A).

(G) An employee may revoke a wage payment arrangement under Subsection (A) at the beginning of each school year.

(H) A wage payment arrangement under this Chapter may not contain any terms beyond those permitted to be bargained under Section 9.

Section 4.

(A) A contract entered into by a teacher and a school district must:

(1) be in writing;
(2) be signed by both parties; and
(3) contain the:
(a) beginning date of the school term as determined annually by the school district;
(b) number of days in the school term as determined annually by the school district;
(c) total salary to be paid to the teacher during the school year;
(d) number of salary payments to be made to the teacher during the school year; and
(e) the number of hours per day the teacher is expected to work, as discussed pursuant to Section 12.

(B) The contract may provide for the annual determination of the teacher’s annual compensation by a local salary schedule, which is part of the contract. The salary schedule may be changed by the school district on or before May 1 of a year, with the changes effective the next school year. A teacher affected by the changes shall be furnished with printed copies of the changed schedule not later than thirty (30) days after the schedule’s adoption.

(C) A governing body shall provide the blank contract forms, carefully worded by the state superintendent, and have them signed. The contracts are public records open to inspection by the residents of each school district.

(D) An action may be brought on a contract that conforms with Subsection (A)(1) and Subsection (A)(2).

Section 5.

(A) A temporary teacher’s contract shall be used only for employing:

(1) a teacher to serve in the absence of a teacher who has been granted a leave of absence by the school district for:
(a) engaging in defense service or in service auxiliary to defense service;
(b) professional study or advancement;
(c) exchange teaching;
(d) extended disability to which a licensed physician has attested; or
(e) serving in the general assembly; or
(2) a new teacher for a position:
(a) that is funded by a grant outside the school funding formula for which funding is available only for a specified period or purpose; or
(b) vacated by a teacher who is under a regular contract and who temporarily accepts a teacher position that is funded by a grant outside the school funding formula for which funding is available only for a specified period or purpose.

(B) The temporary teacher’s contract must contain:

(1) the provisions of the regular teacher’s contract except those providing for continued tenure of position;
(2) a blank space for the name of the teacher granted the leave, which may not be used on another temporary teacher’s contract for the same leave of absence; and
(3) an expiration date that:
(a) is the date of the return of the teacher on leave; and
(b) is not later than the end of the school year.

(C) If a teacher is employed on the temporary teacher’s contract for at least sixty (60) days in a school year, the teacher may, on request, receive the service credit that the teacher would otherwise receive with regard to the [State] state teachers’ retirement fund.

Section 6.

(A) This Section does not apply to the bargaining team for the exclusive representative.

(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 district 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 district 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 district who are members of the exclusive representative.

Section 7.

(A) Any contract may not include provisions that conflict with:

(1) any right or benefit established by federal or state law;
(2) school employee rights set forth in [insert appropriate statute];
(3) school employer rights set forth in [insert appropriate statute];
(4) restructuring options available to a school employer under federal or state statutes, regulations, or rules because of the failure of the school district or a school to meet federal or state accountability standards;
(5) a school employer’s ability 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; or
(6) Section 10(A) of this Chapter.

(B) A subject that is set forth in Section 10(A) of this Chapter may not be included in any contract after June 30, 2011.

Section 8.

(A) It is unlawful for a school employer to enter into any agreement that would place the employer in a position of deficit financing due to a reduction in the employer’s actual general fund revenue or an increase in the employer’s expenditures when the expenditures exceed the employer’s current year actual general fund revenue.

(B) A contract that provides for deficit financing is void to that extent, and an individual teacher’s contract executed under the contract is void to that extent.

Section 9.

(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.

(B) Salary and wages include the amounts of pay increases available to employees under the salary scale adopted under [insert appropriate statute], but do not include the teacher evaluation procedures and criteria, or any components of the teacher evaluation plan, rubric, or tool.

Section 10.

(A) For 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 district 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 9 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.

Section 11.

(A) A school employer may not bargain collectively with the exclusive representative on teacher evaluation procedures and criteria after this Section has been enacted into law.

(B) A contract entered into between a school employer and an exclusive representative after this Section has been enacted into law may not extend past the end of a state budget biennium.

Section 12.

(A) A school employer shall discuss with the exclusive representative of certificated employees the following items:

(1) Curriculum development and revision.
(2) Textbook selection.
(3) Teaching methods.
(4) Hiring, evaluation, promotion, demotion, transfer, assignment, and retention of certificated employees.
(5) Student discipline.
(6) Expulsion or supervision of students.
(7) Pupil/teacher ratio.
(8) Class size or budget appropriations.
(9) Safety issues for students and employees in the workplace, except those items required to be kept confidential by state or federal law.
(10) Hours.

Section 13.

The obligation to discuss does not require either party to enter into a contract, agree to a proposal, or make a concession related to the items listed in Section 12 of this Chapter. A failure to reach an agreement on a matter of discussion does not allow the use of any part of the impasse procedure under [insert appropriate code].

Section 14.

Formal collective bargaining between a school district and the exclusive representative shall begin before August 1 in the first year of the state budget biennium. Informal negotiations may be held before August 1.

Section 15.

Within thirty (30) days after the date of the first state ADM count date of the school year in the first year of the state budget biennium, the department shall provide the parties with a certification of estimated general fund revenue available for bargaining from the school funding formula. A school employer that has passed a general fund operating referendum must have that amount certified by the department of local government finance. The school district must obtain the certification before the commencement of bargaining. These certifications must be the basis for determinations throughout impasse proceedings under this Chapter.

Section 16.

(A) At any time after at least sixty (60) days following the beginning of formal bargaining collectively between the parties, an impasse is declared, and the board shall appoint a mediator from the board’s staff.

(B) The mediator shall begin mediation with fifteen (15) days after the board receives notice of impasse.

(C) The mediation must consist of 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 9.
(2) Each party’s last best offer, including fiscal rationale, related to items permitted to be bargained under Section 9.

(D) Costs for the mediator shall be borne equally by the parties.

(E) Mediation shall be completed within thirty (30) days.

Section 17.

(A) If an agreement has not been reached on the items permitted to be bargained collectively under Section 9, within fifteen (15) days after mediation under Section 16 has ended, the board shall initiate factfinding.

(B) Factfinding must culminate in the factfinder imposing contract terms on the parties. The factfinder’s order must be restricted to only those items permitted to be bargained and included in the collective bargaining agreement under Section 9 and must not put the employer in a position of deficit financing. 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.

(D) Fact-finding may not last longer than fifteen (15) days.

Section 18.

(A) If an agreement has not been reached on the items to be bargained collectively by November 1, the parties shall continue the status quo, and the school employer may issue tentative individual contracts and prepare its budget on that basis. During this status quo 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) During the bargaining process, 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 of the status quo 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) The only parts of the contract that must continue in status quo under this Section are the items contained in the contract and listed in Section 9.

(D) 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.

Section 19.

(A) Either party may appeal the decision of the factfinder under Section 18. The appeal must be filed not later than thirty (30) days after receiving the factfinder’s decision.

(B) The board’s decision must be restricted to only those items permitted to be bargained and included in the collective bargaining agreement under Section 9 and must not put the employer in a position of deficit financing. The board’s decision may not impose terms beyond those proposed by the parties in their last, best offers.

(C) The board must rule on the appeal within thirty (30) days after receipt of notice of appeal.

Section 20.

(A) It is an unfair practice for a school employer to do any of the following:

(1) Interfere with, restrain, or coerce school employees in the exercise of the rights guaranteed in [insert appropriate code].
(2) Dominate, interfere, or assist in the formation or administration of any school employee organization or contribute financial or other support to the organization. Subject to rules adopted by the governing body, a school employer may permit school employees to confer with the school employer or with any school employee organization during working hours without loss of time or pay.
(3) Encourage or discourage membership in any school employee organization through discrimination in regard to:
(a) hiring;
(b) tenure of employment; or
(c) any term or condition of employment.
(4) Discharge or otherwise discriminate against a school employee because the employee has filed a complaint, affidavit, petition, or any information or testimony under this article.
(5) Refuse to:
(a) bargain collectively; or
(b) discuss; with an exclusive representative as required by this article.
(6) Fail or refuse to comply with any provision of this article.

(B) If:

(1) a complaint is filed that alleges an unfair practice has occurred with respect to a subject that may be discussed under this article; and
(2) the complaint is found to be frivolous; the party that filed that complaint is liable for costs and attorney’s fees.

Section 21.

The purpose of fact-finding is to provide a final solution on the items permitted to be bargained Section 9 whenever the parties are unable by themselves, or through a mediator, to resolve a dispute.

Section 22.

(A) When a fact-finder is requested or required, the board shall appoint a fact-finder.

(B) The fact-finder shall make an investigation and hold hearings as the fact-finder considers necessary in connection with a dispute.

(C) The fact-finder:

(1) may restrict the fact-finder’s findings to those issues that the fact-finder determines significant;
(2) must restrict the findings to the items listed Section 9; and
(3) may not impose terms beyond those proposed by the parties in their last, best offers.

(D) The fact-finder may use evidence furnished to the fact-finder by:

(1) the parties;
(2) the board;
(3) the board’s staff; or
(4) any other state agency.

(E) The fact-finder shall conduct the fact-finding 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 fact-finding process may not exceed fifteen (15) 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 fact-finder. 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 finding for items, unless the school funding formula allows other funds to be used for certain items.

(G) The fact-finder shall make a recommendation as to the settlement of the disputes over which the fact-finder has jurisdiction.

(H) The fact-finder 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 Section 9.

(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.

Section 23.

In conducting hearings and investigations, the factfinder shall consider the following factors:

(1) Past memoranda of agreements and contracts between the parties.
(2) Comparisons of wages and hours of the employees involved with wages of other employees working for other public agencies and private concerns doing comparable work, giving consideration to factors peculiar to the school district.
(3) The public interest.
(4) The financial impact on the school district and whether any settlement will cause the school district to engage in deficit financing.

Section 24.

(A) The investigation, hearing, and findings of the fact-finder must be:

(1) made as expeditiously as the circumstances allow; and
(2) delivered to the parties and to the board.

(B) The board, after receiving the findings and recommendations under Subsection (A), may make additional findings and recommendations to the parties based upon information in the report or in the board’s possession. The board may not make any recommendations to the parties related to any items not specifically identified in Section 9 and may not address items beyond those proposed by the parties in their last, best offers.

(C) The board:

(1) may, at any time within five (5) days; and
(2) shall, within ten (10) days; after receiving the findings and recommendations delivered under Subsection (A), make the findings and recommendations of the fact-finder and the board’s additional findings and recommendations, if any, available to the public through the news media and any other means.

Section 25. {Effective Upon Passage}

(A) The current terms of the members of the [State] education employment relations board are terminated effective July 1, [year].

(B) The governor shall appoint the replacement members of the [State] education employment relations board by July 1, [year]. Before appointing the members under this Section, the governor shall obtain recommendations from the speaker of the [State] house of representatives and the president pro tempore of the [State] senate concerning the appointment of members to replace the members described in Subsection (A). However, if either fails to submit recommendations to the governor before July 1, [year], the governor shall make the appointments without recommendation by the speaker or president pro tempore.

(C) The terms of the members appointed under Subsection (B) begin July 1, [year].


Chapter 5. Turnaround Academies Act

Section 1. {Title} This Act may be referred to as the “Turnaround Academies Act.”

Section 2. {Definitions}

(A) “Turnaround academy” means a school that is subject to Section 5.

(B) “Special management team” means an entity that manages a turnaround academy.

Section 3. {Classification of turnaround academy}

(A) This section applies if, in the third year after initial placement in the lowest category or designation, a school still remains in the lowest category or designation.

(B) The state board shall establish and assign an expert team to the school. The expert team:

(1) Must include representatives from the community or region that the school serves; and
(2) May include:
(a) school superintendents, members of governing bodies, and teachers from school corporations that are in high categories or designations; and
(b) special consultants or advisers.

(C) The expert team shall:

(1) assist the school in revising the school’s plan; and
(2) recommend changes in the school that will promote improvement, including the reallocation of resources or requests for technical assistance.

(D) The governing body of the school corporation in which a school to which this section applies is located may petition the state board to immediately restructure the school by presenting a written plan to the state board setting forth the proposed intervention for the school. If the state board approves the petition and accepts the plan, the school:

(1) operates under the applicable provisions of Section 5; and
(2) is carried forward in the same performance category or designation in which the school is placed at the time the state board accepts the plan.

Section 4. {Establishment as turnaround academy}

(A) This section applies if, in the fifth year after initial placement in the lowest category or designation, a school still remains in the lowest category or designation.

(B) The state board shall do the following:

(1) Hold at least one (1) public hearing in the school corporation where the school is located to consider and hear testimony concerning the following options for school improvement:
(a) Merging the school with a nearby school that is in a higher category.
(b) Assigning a special management team to operate all or part of the school.
(c) The department’s recommendations for improving the school.
(d) Other options for school improvement expressed at the public hearing. including closing the school.
(e) Revising the school’s plan in any of the following areas:
(i) Changes in school procedures or operations.
(ii) Professional development.
(iii) Intervention for individual teachers or administrators.
(2) If the state board determines that intervention will improve the school, implement at least one (1) of the options listed in subdivision (1).

(C) Unless the school is closed or merged, a school that is subject to improvement under this section becomes a turnaround academy under Section 5.

Section 5. {Turnaround Academies}

(A) Exemption from provisions related to school employers; personnel decisions

(1) None of the following may be considered a school employer with respect to a turnaround academy:
(a) The state.
(b) The state board.
(c) A special management team assigned by the state board under Section 7 to operate a school as a turnaround academy.
(2) A special management team assigned under Section 7 to operate a school as a turnaround academy shall make all personnel decisions in the school. In operating the school as a turnaround academy under this chapter, the special management team is not bound by any collective bargaining contract.

(B) Use of existing buildings; transportation; responsibilities of school district

(1) If the state board assigns a special management team under Section 7 to operate school as a turnaround academy, for as long as the special management team operates the turnaround academy:
(a) The special management team shall continue to use the school building, the accompanying real property, and the building’s contents, equipment, and supplies; and
(b) The school corporation shall continue to:
(i) provide transportation for students attending the turnaround academy at the same level of service the school corporation provided before the school became a turnaround academy; and
(ii) maintain and repair the buildings and grounds consistent with the maintenance and repair to the school corporation‘s other buildings and grounds. The school corporation shall consult with the special management team regarding these matters.
(2) If the special management team contracts with a school corporation for goods or services, the school corporation may not charge the special management team more for the goods or services than the school corporation pays for the goods or services.
(3) The special management team and the school corporation’s board shall hold a joint public meeting at least two (2) times each year to discuss issues and progress concerning the turnaround academy.

(C) Allocation of state tuition support and federal funds; eligibility for other funds

(1) Turnaround academies are eligible to receive building and technology loans administered by the state board from the common school fund.
(2) A student who attends a turnaround academy or another school subject to intervention under this chapter remains an eligible pupil of the school corporation where the student has legal settlement.
(3) The state board, based upon recommendations received from the department, shall determine the amounts of state tuition support and federal funds that are necessary to fund options for improvement implemented by the state board under this chapter with respect to each turnaround academy.
(4) The department shall do the following:
(a) Withhold from state tuition support and federal funds otherwise to be distributed to the school corporation of the school operated as a turnaround academy under this chapter the amount determined under subsection (c) for the affected students. The amount withheld under this subdivision may not exceed the total per pupil funding for the affected students.
(b) Enter into any contracts necessary to implement the options for improvement implemented for the school by the state board, including contracts with a special management team assigned under Section 7 to operate the school as a turnaround academy.
(c) Make payments under the contracts entered into under subdivision (2) with funds withheld from the school corporation under subdivision (1).

(D) Eligibility of students to enroll in turnaround academy

(1) Any student who lives in the attendance area served by a school that operated as a turnaround academy under this chapter may attend the turnaround academy. The turnaround academy may not refuse enrollment to a student who lives in the attendance area.

(E) Oversight of special management team by mayor; petition

(1) The executive of a city or county in which one (1) or more turnaround academies are located may petition the state board to oversee the special management team. The petition must include the following:
(a) The names of one (1) or more turnaround academies located within the executive’s jurisdiction for which the executive wishes to conduct oversight.
(b) The functions the executive wishes to perform.
(c) Information on how and by whom those functions will be carried out.
(2) The state board may approve or not approve a petition under this section in whole or part.

(F) Rules

(1) The state board may adopt rules to implement this Section.


Chapter 6. Early Graduation Scholarship Act

Section 1. {Title} This Act may be referred to as the “Early Graduation Scholarship Act.”

Section 2. {Definitions}

(A) “Publicly supported school” means the following:

(1) a school corporation.
(2) a charter school.
(3) a high school maintained by a state educational institution.

(B) “Commission” refers to the state student assistance commission.

Section 3. {Early Graduation Scholarship Program Establishment}

The early graduation scholarship program is established. The commission shall administer the early graduation scholarship program.

Section 4. {Eligibility}

An individual is eligible for an early graduation scholarship if the individual:

(1) is a resident of the state, as defined by the commission;
(2) attended a publicly supported school on a full-time equivalency basis for at least the last two (2) semesters before the individual graduated from high school;
(3) had legal settlement in [State] for at least the last two (2) semesters before the individual graduated from high school;
(4) met at least the minimum requirements set by the State Board of Education [or other appropriate State Agency] for granting a high school diploma by the end of grade 11 (including any summer school courses completed before July 1 of a year) and was awarded after December 31, 2010, a high school diploma by the publicly supported school that the individual last attended for course credits earned before the end of grade 11;
(5) was not enrolled in a publicly supported school for any part of grade 12;
(6) applies to the commission for an early graduation scholarship in the manner specified by the commission; and
(7) within five (5) months after graduating from high school, becomes a student in good standing at an approved postsecondary educational institution whose students are eligible to receive a higher education award and is engaged in a program that will lead to an approved postsecondary degree or credential.

Section 5. {Nonstandard Graduation}

Graduation from a nonstandard course and curriculum program or a program for high ability students that has been granted a waiver by the [State] state board of education shall be treated as meeting the minimum requirements set by the [State] board of education for granting a high school diploma.

Section 6. {Reporting Requirements}

(A) A publicly supported school shall submit to the department of education the name of each individual described in Section 4 Paragraphs (1) through (4) of this Chapter.

(B) The department of education shall submit to the commission the information submitted under Subsection (A) and any other supporting information requested by the commission on the schedule and in the form specified by the commission.

Section 7. {Scholarship Payment}

(A) If an applicant becomes a student in good standing at an approved postsecondary institution, the institution shall provide a written notice to the commission.

(B) If the applicant has met the eligibility requirements prescribed in this chapter, the commission shall award the applicant an early graduation scholarship and make the payment directly to the institution. The institution may apply the payment to any outstanding tuition and fees and shall remit the balance of the scholarship to the student.

Section 8. {Scholarship Amount}

The amount of an early graduation scholarship is four thousand dollars ($4,000).

Section 9. {Financial Resource Exclusion}

The amount of an early graduation scholarship awarded under this chapter shall not be considered as a financial resource in a determination of the amount of any grant or scholarship under this article or, except as required by federal law, the amount of any other grant or scholarship administered by the commission.

Section 10. {Institutional Requirements}

An institution is not required to change its admission standards to accept an individual to whom the commission has issued an early graduation scholarship. The scholarship may not be used for remedial course work at the institution. The institution shall provide facilities and instruction to the applicant on the same terms as to other students.

Section 11. {Funding}

(A) The commission shall notify the department of the amount of early graduation scholarships granted for each state fiscal year. The department shall deduct the scholarship amount presented by the commission from the appropriation for tuition support for that state fiscal year and promptly transfer the amount to the commission.

(B) In the department’s biennial budget request, the department shall estimate the number of students that are expected to become eligible for an early graduation scholarship and the estimated total amount needed to provide the scholarships for each state fiscal year for which the department requests an appropriation for tuition support. The department shall include in its request for tuition support an amount sufficient to provide the scholarships. The requested amount may not exceed the amount that would have been included in the department’s request for tuition support if the students had not graduated early.


Chapter 7. Textbooks and Other Curricular Material Act

Section. 1. {Title} This Act may be referred to as the “Textbooks and Other Curricular Material Act.”

Section 2. {Definitions}

(A) “Textbook” means systematically organized material designed to provide a specific level of instruction in a subject matter category, including:

(1) books;
(2) hardware that will be consumed, accessed, or used by a single student during a semester or school year;
(3) computer software; and
(4) digital content.

(B) “Curricular materials” means:

(1) textbooks; and
(2) material used to supplement or replace textbooks, including:
(a) books and other printed material;
(b) computer software; and
(c) digital content.

(C) “Department” means the State Department of Education.

Section 3.

(A) The department shall evaluate curricular materials. The evaluation must include an evaluation of:

(1) the curricular materials’ alignment to the academic standards adopted by the state board; and
(2) the appropriateness of the reading level of the curricular materials.

(B) The department shall publish a report that describes the method used to conduct the evaluation required under subsection (a) and that contains the results of the evaluation. The report must:

(1) provide a list of each curricular material evaluated and a summary of the evaluation for each curricular material;
(2) be updated annually; and
(3) provide a listing and summary review for the curricular materials that are aligned to the academic standards adopted by the state board for the following subjects for each grade level:
(a) English/language arts, including spelling, literature, and handwriting.
(b) Reading.
(c) Mathematics.
(d) Science.
(e) Social studies.
(f) Miscellaneous.
(g) World languages.

(C) A governing body and superintendent may use the report under Subsection (B) in complying with local textbook adoption standards.

(D) To be included in the report under Subsection (B), a publisher must provide the department a written exact and standard statewide price for each curricular material.

(E) A publisher may request that an update to the publisher’s curricular materials and corresponding prices replace the curricular materials set forth in the report under Subsection (B).

Section. 4.

(A) The state superintendent shall notify the governing bodies of each school corporation, charter school, and accredited nonpublic school immediately of:

(1) the initial publication and annual update on the department’s Internet web site of the report described in Section 3(B) of this chapter, including the Internet website address where the report is published; and
(2) updates of the following types of information in the report described in Section 3(B) of this chapter:
(a) The addition of materials.
(b) The removal of materials.
(c) Changes in the per unit price of curricular materials that exceed five percent (5%).

(B) A notification under this section must state that:

(1) the curricular materials included in the report described in Section 3(B) of this chapter are departmental reviews only; and
(2) each governing body has authority to adopt textbooks for a school corporation.

Section 5.

(A) The superintendent shall establish procedures for textbook adoption. The procedures must include the involvement of teachers and parents on an advisory committee for the preparation of recommendations for textbook adoptions. The majority of the members of the advisory committee must be teachers, and at least forty percent (40%) of the committee must be parents. These recommendations shall be submitted to the superintendent in accordance with the established procedures in the local school corporation.

(B) The governing body, upon receiving these recommendations from the superintendent, shall adopt a textbook for use in teaching each subject in the school corporation.

(C) A special committee of teachers and parents may also be appointed to review books, magazines, and audiovisual material used or proposed for use in the classroom to supplement state adopted textbooks and may make recommendations to the superintendent and the governing body concerning the use of this material.

(D) A textbook selected shall be used for the lesser of:

(1) six (6) years; or
(2) the effective period of the academic standards adopted by the state board to which that textbook is aligned.

(E) A selection may be extended beyond that period for up to six (6) years.

(F) The governing body may, if the governing body considers it appropriate, retain a textbook adopted under this section and authorize the purchase of supplemental materials to ensure continued alignment with academic standards adopted by the state board.

(G) The superintendent, advisory committee, and governing body may consider using the list of curricular materials provided by the department under this Chapter.

(H) Notwithstanding Subsection (G) and this Chapter, the superintendent, advisory committee, and governing body shall adopt reading textbooks from the list of recommended curricular materials provided by the department.

(I) A governing body may not purchase textbooks from a publisher unless the publisher agrees, in accordance with sections 612(a)(23)(A) and 674(3)(4) of the Individuals with Disabilities Education Act 2004 (20 U.S.C. 1400 et seq.), to provide or grant a license to the school corporation to allow for the reproduction of adopted textbooks in:

(1) large type;
(2) Braille;
(3) audio format; and
(4) formats necessary to ensure usability for all students in the school corporation.


Drafting Notes

This Model Bill is based on several bills passed through the Indiana Legislature. It may be beneficial to review the original bills introduced in Indiana for all Chapters of this Model Bill except (3) Teacher Evaluations and Licensing Act and (4) Teacher Collective Bargaining Act, both of which were improved during negotiations. The corresponding bill numbers are:

(1) Charter Schools Act – HB 1002

(2) School Scholarships Act – HB 1003

(3) Teacher Evaluations and Licensing Act – SB 1

(4) Teacher Collective Bargaining Act – SB 575

(5) Turnaround Academies Act – HB 1479

(6) Early Graduation Scholarship Act – SB 497

(7) Textbooks and Other Curricular Material Act – HB 1429

For these bills in earlier forms, go to www.in.gov/legislative

Adopted by the Education Task Force at ALEC’s Annual Meeting on August 5, 2011.

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