Bill Text: IN HB1003 | 2013 | Regular Session | Enrolled
Bill Title: Nonpublic school scholarships.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2013-05-13 - Public Law 211 [HB1003 Detail]
Download: Indiana-2013-HB1003-Enrolled.html
Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is
being amended, the text of the existing provision will appear in this style type, additions
will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that
adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles
conflicts between statutes enacted by the 2012 Regular Session of the General Assembly.
AN ACT to amend the Indiana Code concerning education and tax.
Be it enacted by the General Assembly of the State of Indiana:
(b) A taxpayer is not entitled to a carryover, carryback, or refund of an unused credit.
(c) This section expires January 1, 2017.
SECTION 2. IC 6-3.1-30.5-9.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013 (RETROACTIVE)]: Sec. 9.5. (a) This section applies to a taxpayer that is entitled to a tax credit under this chapter for a taxable year beginning after December 31, 2012.
(b) If the credit provided by this chapter exceeds the taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried forward to succeeding taxable years and used as a credit against the taxpayer's state tax liability during those taxable years. Each time the credit is carried forward to a succeeding taxable year, the credit is reduced by the amount
that was used as a credit during the immediately preceding taxable
year. The credit provided by this chapter may be carried forward
and applied to succeeding taxable years for nine (9) taxable years
following the unused credit year.
(c) A taxpayer is not entitled to a carryback or refund of any
unused credit.
SECTION 4. IC 20-51-1-4.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2013]: Sec. 4.3. "Eligible choice scholarship student" refers to an
individual who:
(1) has legal settlement in Indiana;
(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
IC 20-33-2-7; and
(3) meets at least one (1) of the following conditions:
(A) The individual is:
(i) a child with a disability who requires special
education and for whom an individualized education
program has been developed under IC 20-35 or a service
plan developed under 511 IAC 7-34; and
(ii) a member of a household with an annual income of
not more than two hundred percent (200%) of the
amount required for the individual to qualify for the
federal free or reduced price lunch program.
(B) The individual is:
(i) an individual who, because of the school corporation's
residency requirement, would be required to attend a
specific public school within a school corporation that
has been placed in the lowest category or designation of
school improvement under IC 20-31-8-4 (has been
assigned an "F" grade); and
(ii) except as provided in IC 20-51-4-2.5, 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.
An individual to whom this clause applies is not required
to attend the public school before becoming eligible for a
choice scholarship, and may not be required to return to
the public school if the public school is placed in a higher
category or designation under IC 20-31-8-4.
(C) Except as provided in IC 20-51-4-2.5, the 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 and the individual was
enrolled in kindergarten through grade 12, in a public
school, including a charter school, in Indiana for at least
two (2) semesters immediately preceding the first semester
for which the individual receives a choice scholarship
under IC 20-51-4.
(D) The individual or a sibling of the individual:
(i) received a scholarship from a scholarship granting
organization under IC 20-51-3 or a choice scholarship
under IC 20-51-4 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 under IC 20-51-3 or
a choice scholarship under IC 20-51-4; and
(ii) except as provided in IC 20-51-4-2.5, 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.
SECTION 5. IC 20-51-1-4.5 IS REPEALED [EFFECTIVE JULY
1, 2013]. Sec. 4.5. "Eligible individual" refers to an individual who:
(1) has legal settlement in Indiana;
(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
IC 20-33-2-7;
(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 corporation
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
IC 20-51-4; or
(B) received a scholarship from a scholarship granting
organization under IC 20-51-3 or a choice scholarship under
IC 20-51-4 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 under IC 20-51-3 or a choice scholarship under
IC 20-51-4.
SECTION 6. IC 20-51-1-4.7, AS ADDED BY P.L.92-2011,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 4.7. "Eligible school" refers to a public or
nonpublic elementary school or high school that:
(1) is located in Indiana;
(2) requires an eligible individual choice scholarship student to
pay tuition or transfer tuition to attend;
(3) voluntarily agrees to enroll an eligible individual; choice
scholarship student;
(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 Indiana statewide testing for educational
progress (ISTEP) program under IC 20-32-5;
(6) is not a charter school or the school corporation in which an
eligible individual choice scholarship student has legal
settlement under IC 20-26-11; and
(7) submits to the department only the student performance data
required for a category designation under IC 20-31-8-3.
SECTION 7. IC 20-51-1-5, AS AMENDED BY P.L.129-2012,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 5. "Eligible student" refers to an individual who:
(1) has legal settlement in Indiana;
(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
IC 20-33-2-7;
(3) either has been or is currently enrolled in a participating
school; and
(4) is a member of a household with an annual income of not
more than two hundred percent (200%) of the amount required for
the individual to qualify for the federal free or reduced price
lunch program. and
(5) meets at least one (1) of the following conditions:
(A) The individual is enrolling in kindergarten.
(B) The individual was enrolled in a public school during the
school year preceding the first school year for which a
scholarship granting organization provides a scholarship to the
individual.
(C) The individual received a scholarship in the previous year
from a nonprofit scholarship granting organization that
qualifies for certification as a school scholarship program.
(D) The individual received a school scholarship from a
scholarship granting organization in a preceding 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 8. IC 20-51-3-3, AS ADDED BY P.L.182-2009(ss),
SECTION 364, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 3. An agreement entered into under
section 1 of this chapter between the department and a scholarship
granting organization must require the scholarship granting
organization to do the following:
(1) Provide a receipt to taxpayers for contributions made to the
scholarship granting organization that will be used in a school
scholarship program. The department of state revenue shall
prescribe a standardized form for the receipt issued under this
subdivision. The receipt must indicate the value of the
contribution and part of the contribution being designated for use
in a school scholarship program.
(2) Allow a taxpayer to designate a participating school for
which the taxpayer's contribution must be used as
scholarships.
(2) Distribute at least ninety percent (90%) of the total amount of
contributions as school scholarships to eligible students.
(3) Use not more than ten percent (10%) of the total amount
of contributions for administrative costs.
(3) (4) Distribute one hundred percent (100%) of any income
earned on contributions as school scholarships to eligible
students.
(4) (5) Conduct criminal background checks on all the scholarship
granting organization's employees and board members and
exclude from employment or governance any individual who
might reasonably pose a risk to the appropriate use of contributed
funds.
(5) (6) Make the reports required by this chapter.
SECTION 9. IC 20-51-4-2, AS ADDED BY P.L.92-2011,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 2. (a) Subject to subsection (b), an eligible
individual choice scholarship student is entitled to a choice
scholarship under this chapter for each school year beginning after
June 30, 2011, that the eligible choice scholarship 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 choice scholarship students.
SECTION 10. IC 20-51-4-2.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 2.5. Notwithstanding
IC 20-51-1-4.3(3)(B), IC 20-51-1-4.3(3)(C), or
IC 20-51-1-4.3(3)(D)(ii), an individual who initially meets the
income requirements under IC 20-51-1-4.3(3)(B),
IC 20-51-1-4.3(3)(C), or IC 20-51-1-4.3(3)(D)(ii) and is a member
of a household whose income subsequently increases is considered
to meet the income requirements for as long as the individual is
enrolled in a participating school and is a member of a household
with an annual income of not more than two hundred percent
(200%) of the amount required for the individual to qualify for the
federal free or reduced price lunch program.
SECTION 11. IC 20-51-4-4, AS ADDED BY P.L.92-2011,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 4. The maximum amount to which an eligible
individual choice scholarship student is entitled to receive under this
chapter for a school year is equal to the following:
(1) The least of the following:
(1) (A) The sum of the tuition, transfer tuition, and fees
required for enrollment or attendance of the eligible choice
scholarship student at the eligible school selected by the
eligible individual choice scholarship student for a school
year that the eligible individual (or the parent of the eligible
individual) choice scholarship student (or the parent of the
eligible choice scholarship student) would otherwise be
obligated to pay to the eligible school.
(2) (B) An amount equal to:
(2) In addition, if applicable, any amount that a school corporation would receive under IC 20-43-7 for the student if the student attended the school corporation.
SECTION 12. IC 20-51-4-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4.5. (a) Notwithstanding 511 IAC 7-34-1(d)(4), a public school is not required to make available special education and related services to an eligible choice scholarship student who receives funds under section 4(2) of this chapter.
(b) A school corporation may not include an eligible choice scholarship student who receives an amount under section 4(2) of this chapter in the school corporation's count under IC 20-43-7.
SECTION 13. IC 20-51-4-4.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4.6. (a) The state board shall
adopt rules under IC 4-22-2, including emergency rules adopted in
the manner provided under IC 4-22-2-37.1, for the provision of
special education or related services to an eligible choice
scholarship student who receives an amount under section 4(2) of
this chapter. The rules adopted under this section shall include
annual reporting requirements, monitoring, and consequences for
noncompliance by an eligible school.
(b) An emergency rule adopted by the state board under this
section expires on the earliest of the following dates:
(1) The expiration date stated in the emergency rule.
(2) The date the emergency rule is amended or repealed by a
later rule adopted under IC 4-22-2-22.5 through IC 4-22-2-36
or under IC 4-22-2-37.1.
(3) One (1) year after the date the emergency rule is adopted.
SECTION 14. IC 20-51-4-5, AS AMENDED BY P.L.6-2012,
SECTION 145, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 5. The state tuition support amount
to be used in section 4(2) 4(1)(B) of this chapter for an eligible
individual choice scholarship student is the amount determined under
the last STEP of the following formula:
STEP ONE: Determine the school corporation in which the
eligible individual choice scholarship student has legal
settlement.
STEP TWO: Determine the amount of state tuition support that
the school corporation identified under STEP ONE is eligible to
receive under IC 20-43 for the calendar state fiscal year in which
the current school year begins, excluding amounts provided for
special education grants under IC 20-43-7 and career and
technical education grants under IC 20-43-8.
STEP THREE: Determine the result of:
(A) the STEP TWO amount; divided by
(B) the current ADM (as defined in IC 20-43-1-10) for the
school corporation identified under STEP ONE for the
calendar state fiscal year used in STEP TWO.
SECTION 15. IC 20-51-4-6, AS ADDED BY P.L.92-2011,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 6. (a) If an eligible individual choice scholarship
student 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 choice scholarship student is entitled to
only one (1) choice scholarship for each school year. If the eligible
individual choice scholarship student leaves the eligible school for
which the eligible individual choice scholarship student was awarded
a choice scholarship and enrolls in another eligible school, the eligible
individual choice scholarship student is responsible for the payment
of any tuition required for the remainder of that school year.
SECTION 16. IC 20-51-4-7, AS ADDED BY P.L.92-2011,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 7. (a) The department shall administer this
chapter.
(b) The department shall approve an application for an eligible
school within fifteen (15) days after the date the school requests to
participate in the choice scholarship program.
(c) The department shall approve an application for a choice
scholarship student within fifteen (15) days after the date the
student requests to participate in the choice scholarship program.
(d) Each year, at a minimum, the department shall accept
applications from March 1 through September 1 for:
(1) choice scholarship students; or
(2) eligible schools;
for the upcoming school year.
(b) (e) The department shall adopt rules under IC 4-22-2 to
implement this chapter.
(c) (f) The department may adopt emergency rules under
IC 4-22-2-37.1 to implement this chapter.
SECTION 17. IC 20-51-4-10, AS ADDED BY P.L.92-2011,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 10. The department shall distribute choice
scholarships at least once each semester, or at equivalent intervals.
The department may distribute any part of a the choice scholarship to
the eligible individual (or the parent of the eligible individual) choice
scholarship student (or the parent of the eligible choice scholarship
student) for the purpose of paying the educational costs described in
section 4(1) 4(1)(A) 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) choice scholarship student (or the
parent of the eligible choice scholarship student) and the eligible
school providing educational services to the eligible individual. choice
scholarship student.
SECTION 18. IC 20-51-4-11, AS ADDED BY P.L.92-2011,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 11. The amount of a choice scholarship provided
to an eligible individual choice scholarship student 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.
SECTION 19. [EFFECTIVE UPON PASSAGE] (a) The legislative
council shall assign to the commission on education established in
SEA 409-2013, for study during the 2013 legislative interim, the
following topics concerning choice scholarships under IC 20-51-4:
(1) The academic performance of choice scholarship schools
in comparison to public schools.
(2) The graduation rates for choice scholarship schools as
compared to public schools.
(3) Student growth and achievement for students enrolled in
choice scholarship schools over time.
(4) Various student demographics, including income, race,
and special needs, for choice scholarship students as
compared to students enrolled in public schools.
(5) Why parents choose to enroll a child in a choice
scholarship school.
(c) This SECTION expires December 31, 2013.
SECTION 20. An emergency is declared for this act.
Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:
Time:
HEA 1003
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