Bill Text: IN HB1003 | 2013 | Regular Session | Engrossed
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-Engrossed.html
Citations Affected: IC 6-3.1; IC 20-51; noncode.
(SENATE SPONSORS _ ECKERTY, YODER, KRUSE, LEISING)
January 15, 2013, read first time and referred to Committee on Education.
February 11, 2013, amended, reported _ Do Pass. Referred to Committee on Ways and
Means pursuant to Rule 127.
February 18, 2013, amended, reported _ Do Pass.
February 20, 2013, read second time, ordered engrossed. Engrossed.
February 21, 2013, read third time, passed. Yeas 57, nays 36.
February 27, 2013, read first time and referred to Committee on Education and Career Development.
March 28, 2013, amended, reported favorably _ Do Pass; reassigned to Committee on Tax and Fiscal Policy.
April 2, 2013, amended, reported favorably _ Do Pass.
April 9, 2013, read second time, amended, ordered engrossed.
Digest Continued
school is not required to make available special education and related services to an eligible choice scholarship student who receives special education funding as part of the choice scholarship. Provides that a school corporation may not include in its special education grant count an eligible choice scholarship student who receives an amount related to special education as part of a choice scholarship. Requires the state board to adopt rules, including emergency rules, for the provision of special education or related services to an eligible choice scholarship student who receives special education funds as part of the choice scholarship. Provides that the choice scholarship shall be distributed each semester during the school year. Amends the definition of "eligible student" for purposes of the statutes concerning scholarship granting organizations. Provides that the legislative council shall assign certain topics to an interim study committee or a statutory study committee. Makes conforming amendments.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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.
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A BILL FOR AN ACT to amend the Indiana Code concerning
education and tax.
(b) A taxpayer is not entitled to a carryover, carryback, or refund of an unused credit.
(c) This section expires January 1, 2017.
(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.
(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; 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 resides in the attendance zone of a public school that has been placed in either:
(i) the lowest category or designation of school improvement under IC 20-31-8-4 under the categories or designations in effect on June 30, 2013; or
(ii) the lowest category or designation for academic growth and either one (1) of the two (2) lowest categories or designations for performance under IC 20-31-8-4 under the categories or designations established after June 30, 2013, for at least two (2) years;
and 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. 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 higher categories or designations 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:
(i) before July 1, 2014, in a public school, including a
charter school, in Indiana; and
(ii) after June 30, 2014, in a public school, not including
a virtual 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 of at least one thousand dollars
($1,000) 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.
(1) is located in Indiana;
(2) requires an eligible
(3) voluntarily agrees to enroll an eligible
(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
(7) submits to the department only the student performance data required for a category designation under IC 20-31-8-3.
(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.
(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.
(3) Use not more than ten percent (10%) of the total amount of contributions for administrative costs.
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.
(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.
(1) The least of the following:
(i) beginning before July 1, 2013, is four thousand five hundred dollars ($4,500);
(ii) beginning after June 30, 2013, and before July 1, 2014, four thousand six hundred dollars ($4,600); and
(iii) beginning after June 30, 2014, four thousand seven hundred dollars ($4,700).
(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.
(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.
(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.
STEP ONE: Determine the school corporation in which the eligible
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
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
(b) An eligible
(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.
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) 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.
(1) Whether the public schools that students left upon receiving the choice scholarships were failing schools.
(2) Whether the nonpublic schools that students attended after receiving choice scholarships are high performing schools.
(3) How many students attending a nonpublic school under a choice scholarship or a scholarship from a scholarship granting organization never attended a public school.
(4) How many additional students are being funded by the state, compared to the year before choice scholarships were first awarded.
(5) What is the poverty rate among families of children receiving choice scholarships.
(6) How many students received a choice scholarship for a reason other than poverty.
(7) How many special education students are receiving choice scholarships.
(8) How many category 1-3 English language learner (ELL) students are receiving choice scholarships.
(9) What is the appropriate limit for state funded scholarships for private education.
(b) The interim study committee or statutory study committee
to which the topics are assigned shall issue a final report to the
legislative council containing the committee's findings and any
recommendations, including any recommended legislation
concerning the topics, not later than November 1, 2013.
(c) This SECTION expires December 31, 2013.
