2003 Digest of New K-12 Education Laws
Last Updated: May 9, 2003

The 2003 session of the Indiana General Assembly adjourned sine die on Sunday, April 27, 2003. The following is a summary of K-12 education, higher education, and child related bills that the Indiana Department of Education tracked through the bill process during the 2003 session. Overall, 1589 bills were introduced this session, and 280 bills were enacted. This summary includes a synopsis of 30 new laws.

K-12 Education Legislation

Senate Enrolled Act 120
Employment of Minors
Authors: Antich, Harrison, Howard
Requires an employer to provide one or two rest breaks totaling at least 30 minutes to a child scheduled to work at least six consecutive hours. Provides that an employer that permits a child to work between the hours of 10 p.m. and 6 a.m. in an establishment that is open to the public unless another employee at least 18 years of age also works in the establishment during those hours commits a hazardous occupation violation.
Effective Date: Upon Passage, July 1, 2003
Signed by the Governor: May 7, 2003

Senate Enrolled Act 169
School Bus Drivers Under Open Door Law
Authors: Lawson, Bowser
Allows a governing body in an executive session to receive information about misconduct and discuss the status of a school bus driver, who is an independent contractor, before the governing body makes a determination. Allows a governing body to provide public notice to the media through the United States mail, by electronic mail, or by fax. Provides that the factual basis of a disciplinary action in which final action has been taken resulting in the suspension, demotion, or discharge of a public employee is a public record.
Effective Date: July 1, 2003
Signed by Governor: May 7, 2003

Senate Enrolled Act 186
Student Discipline
Author: Lubbers
Provides that a student who is expelled from a charter school is subject to the same requirements for enrollment in another school corporation or charter school as a student who is: (1) expelled from a public school; or (2) required to separate from a nonpublic school or a school in a state other than Indiana.
Effective Date: July 1, 2003
Signed by the Governor: May 7, 2003

Senate Enrolled Act 230
Joint Summer School Programs
Authors: Long, Meeks, Sipes, Breaux, Wyss
Allows a school corporation to enter into an agreement with other school corporations and accredited nonpublic schools to provide joint summer school programs for high school students. Allows the joint programs to be conducted by state educational institutions and students to receive high school and college credit for the programs. Requires the scorer of an examination required for licensure as a teacher or school administrator to provide certain information to an individual who did not pass all or part of the examination.
Effective Date: July 1, 2003
Signed by the Governor: May 7, 2003

Senate Enrolled Act 501
Charter Schools
Authors: Lubbers, Rogers
Specifies that the school employees of a conversion charter school cannot have their benefits or employment with the school corporation that sponsored the charter school terminated. Allows a school corporation to increase its maximum levy by the amount of any local funding provided to a charter school. Excludes the levy increase from the school corporation's previous year revenue and tuition support calculation. Requires the Department of Local Government Finance to inform each county auditor of the amount of local funding to distribute to a charter school. Creates a separate average daily membership ("ADM") count for a charter school. Provides that all university sponsors together may sponsor not more than five charter schools each year. Provides that a university may not sponsor a charter school in Marion County. Requires a university to conduct a public meeting in the county where the university intends to sponsor a charter school. Prohibits the mayor of a consolidated city from banking charter schools from 2003 through 2005. Requires the Department of Education ("department") to distribute tuition support and other state funding to a charter school beginning in the second semester of the charter school's operation. Requires the department to provide the Department of Local Government Finance information necessary to calculate a charter school's share of local funding. Provides that the school corporation in which a conversion charter school is located provides state funding and a proportionate share of local funding to the conversion charter school during its first semester of operation. Requires the organizer of a charter school to apply for federal funding. Allows a charter school to borrow from the common school fund for first semester operational costs and operational costs associated with a growth in enrollment of at least 15%. Provides for repayment of any outstanding obligation from the common school fund of a charter school that terminates operation. Provides that the at risk and complexity indices for a charter school are the at risk and complexity indices of the school corporation in which the charter school is located. Provides that the at risk and complexity indices for Campagna Academy Charter School are the weighted averages of the at risk and complexity indices of the school corporations in which the charter school's students have legal settlement. Includes charter schools in the following categorical distributions: (1) free lunch and textbook reimbursement; (2) primetime; (3) at risk; (4) growing enrollment; (5) academic honors diploma; (6) special education; and (7) vocational education. Forgives outstanding obligations of charter schools from the abandoned property fund. States the intent of the general assembly to fund charter schools under the same formula as other school corporations.
Effective Date: January 1, 2002 (retroactive); January 1, 2003 (retroactive); Upon Passage; July 1, 2003
Signed by the Governor: May 8, 2003

Senate Enrolled Act 503
Railroad Crossing Safety
Authors: Riegsecker, Zakas
Authorizes the department of transportation (INDOT) to create pilot railroad crossing safety projects. Permits the procedure for adopting a local ordinance concerning the use of train whistles to apply to a rail corridor, instead of to a single railroad crossing, and requires an ordinance prohibiting train whistles to include specific language. Requires the safety study required of INDOT after the ordinance is adopted to consider certain items, including school bus routes and pedestrian traffic. Prohibits INDOT from revoking its permission for regulating the use of train whistles after the ordinance is adopted, and requires INDOT to grant permission in certain circumstances.
Effective Date: July 1, 2003
Signed by the Governor: May 1, 2003

House Enrolled Act 1001
State Budget Bill
Authors: Crawford, Cochran
Makes appropriations for the state. Transfers money among funds. Changes the distributions made to local government. In terms of K-12 education:

• Provides a minimum guaranteed increase in regular dollars for all school corporations of 1% (Except for some schools with a dual enrollment payback in CY 2005).
• Provides total formula dollar increase of 1.6% for 2004 and 1.7% for 2005 without Capital Projects Fund transfers. Total formula increases with transfers are 3.3% and 2.9%.
• Creates a new Complexity Index to provide additional dollars to help educate at risk students and a Second Tier Complexity Index that provides additional dollars for corporations with unusually large numbers of complex students.
• Adds a new remediation grant of $15 M for 2004 and $30 M for 2005. Funds are distributed on a per pupil basis similar to the existing line item remediation distribution.
• Provides school corporations with budget flexibility by permitting costs for utilities and property insurance to be paid from the Capital Projects Fund (CPF). All school corporations may elect to pay these expenses from CPF in an amount not to exceed 1% of CY 2003 total dollars for CY 2004 and another 1% for CY 2005.
• Restores $119 M Deficit Management Plan (DMP) cut for FY ’03.
• Funds ½ of ADA Flat Grant, Transportation and Special Ed/Voc Ed Transportation from 2003 base level for 2004. Eliminates funding for ADA Flat, Transportation and Special Ed/Voc Ed Transportation in 2005. (Reduction from 2003 of $34.4 M for 2004 and $68.8 M for 2005)

Includes various other economic development initiatives. Makes other changes affecting state tax deductions and credits, property taxation, the state lottery, riverboats, pensions, corrections, Medicaid, and education.
Effective Date: January 1, 2002 (retroactive); July 1, 2002 (retroactive); January 1, 2003 (retroactive); upon passage; July 1, 2003
Signed by the Governor: May 8, 2003

House Enrolled Act 1078
Confidentiality of Public Employee Bargaining
Authors: Adams, Alderman, Cheney, Liggett
Provides that agents appointed by a governing body of a public agency to conduct collective bargaining on behalf of the governing body are not subject to the open door law.
Effective Date: July 1, 2003
Signed by the Governor: April 17, 2003

House Enrolled Act 1088
School Bonds for Retirement or Severance Liability
Author: Austin
Extends the sunset date for issuance of school corporation bonds for retirement or severance liability from December 31, 2003, to December 31, 2004. Provides that the total amount of bonds issued for this purpose may not exceed 2% of the total true tax value of property in the school corporation. Specifies that the school bus replacement fund is one of the funds that the school corporation may reduce in order to satisfy the requirement to reduce its total property tax levy in an amount equal to the levy for debt service on the bonds. Requires a school corporation to establish a separate debt service fund for repayment of the bonds.
Effective Date: Upon Passage
Signed by the Governor: April 14, 2003

House Enrolled Act 1120
School Corporation Performance Report; Graduation Rate
Authors: Porter, Scholer
Changes the required publication date and some components of school corporation annual performance reports. Provides for reports to be made available on the Internet. Requires school corporations to provide free copies of reports upon request. Removes language concerning the performance based accreditation program. Provides a method for calculating the graduation rate for high school students.
Effective Date: July 1, 2003
Signed by the Governor: April 29, 2003

House Enrolled Act 1169
TRF COLAs
Authors: Goodin, Herrell, Scholer, Austin
Provides for a cost of living adjustment (COLA) for members of the teachers retirement fund (TRF) (or their survivors or beneficiaries) for 2004.
Effective Date: July 1, 2003
Signed by the Governor: May 7, 2003

House Enrolled Act 1219
Provisional Taxes
Authors: Ayres, Espich, Kuzman, Dobis
Establishes temporary provisional property tax billing procedures for a county in which the general reassessment is not completed by the statutory completion date. Requires a county to distribute collections to taxing units in the county within 51 days after the property tax due date. Permits the Department of Local Government Finance to adopt emergency rules before January 1, 2005. Adds a provision concerning temporary borrowing by school corporations. Provides that if a governing body of a school corporation determines that an emergency exists that requires an extension of the prescribed maturity date for tax anticipation warrants, the prescribed maturity date may be extended for not more than six(6) months after the budget year for which the temporary loan is made, with certain conditions (see SECTION 4 of the Act).
Effective Date: Upon Passage
Signed by the Governor: May 8, 2003

House Enrolled Act 1620
School Employees
Authors: Lawson, Ayres
Makes changes relating to the policies a school may adopt concerning criminal history checks. Requires a prosecuting attorney to notify the state superintendent of public instruction and the employer when a licensed school employee is convicted of certain offenses. Makes changes in the grounds for which teachers' licenses may be revoked and contracts may be canceled. In a tort action against a governmental employee whose act or omission is in the scope of the employee's employment, provides that the governmental entity and employee are not liable for punitive damages and requires a governmental entity to pay a judgment of a claim or suit against the employee when the governmental entity has the opportunity to defend the employee. In a civil rights action against a governmental employee, requires a governmental entity to pay a judgment for punitive damages, compromise, or settlement against an employee when: (1) the act or omission causing the loss is in the scope of the employee's employment; (2) the governmental entity has the opportunity to defend the employee; and (3) the compromise or settlement is in the best interest of the governmental entity. Provides that a governmental entity or employee acting in the scope of employment is not liable if a loss results from an injury to a person assigned to a pretrial conditional release program. Provides civil immunity for making certain reports concerning a teacher. Changes the law concerning seduction of a child at least 16 years of age to add certain actions that constitute the offense and to expand coverage to all employees of a child's school.
Effective Date: July 1, 2003
Signed by the Governor: May 5, 2003

House Enrolled Act 1702
Immunization for Chicken Pox
Author: C. Brown
Requires a child who enters kindergarten or grade 1 to be immunized against chicken pox, beginning July 1, 2004
Effective Date: July 1, 2003
Signed by the Governor: May 8, 2003

House Enrolled Act 1734
Nonpermanent Teacher Contracts
Authors: Ayres, Porter, Thomas, Lawson
Allows flexibility in the time when a school corporation must hold a conference on the nonrenewal of the contract of a nonpermanent teacher so that both the open door law and the nonpermanent teacher's contract rights law are not violated.
Effective Date: July 1, 2003
Signed by the Governor: May 8, 2003

House Enrolled Act 1788
Sale of Tobacco
Authors: Hasler, Murphy
Prohibits smoking on a school bus during a school week or a school activity. Violation of this act is a Class B infraction. Renames the youth tobacco education and enforcement fund the Richard D. Doyle youth tobacco education and enforcement fund. Many other sections of the bill deal with tobacco related issues that are not germane to education.
Effective Date: July 1, 2003
Signed by the Governor: May 8, 2003

House Enrolled Act 1901
Marion County School Board Ballots
Authors: Porter, Frizzell
Requires that the same method used to cast votes for all other candidates be used to cast votes for school board candidates in Marion County.
Effective Date: July 1, 2003
Signed by the Governor: April 17, 2003

Higher Education Legislation

Senate Enrolled Act 117
Eligibility for SSACI Programs
Authors: Rogers, Antich, Drozda, Howard, Hume
Provides that if a dependent student has resided with a caretaker relative other than the student's parent for at least 4 years, the student's eligibility to participate in financial aid programs administered by the state student assistance commission is determined according to the residence of the caretaker relative. Requires the income of the student's legal parent to be considered in making eligibility determinations.
Effective Date: Upon Passage
Signed by the Governor: May 1, 2003

House Enrolled Act 1209
State Educational Institution Credit Agreements
Author: Herrell
Requires the statewide transfer and articulation committee to: (1) submit an annual report to the legislative council; (2) develop statewide transfer of credit agreements for courses that are most frequently taken by undergraduates; (3) develop statewide agreements under which associates of arts and associate of science programs articulate fully with related baccalaureate degree programs; and (4) publicize a master list of course transfer of credit and program articulation agreements.
Effective Date: July 1, 2003
Signed by the Governor: April 14, 2003

Child Related Legislation

Senate Enrolled Act 62
Commission on Abused and Neglected Children and Their Families
Authors: Lawson, Simpson, Breaux
Establishes a commission on abused and neglected children and their families to develop a plan of services for children at risk of abuse or neglect and for abused or neglected children and their families. Requires a report not later than August 15, 2004.
Effective Date: July 1, 2003
Signed by the Governor: May 7, 2003

Senate Enrolled Act 63
Minimum Standards for Child Care
Author: Lawson
Defines and amends the use of certain terms for purposes of the law concerning the federal child care and development fund voucher program (CCDF). Extends the expiration date of the board for coordination of child care regulation to November 1, 2005. Specifies individuals included in certain voucher program requirements. Specifies certain minimum requirements for CCDF participation by child care providers. Requires continual supervision by a caregiver of a child in the care of a CCDF provider, a child care home, or a child care center. Makes conforming amendments. Repeals the definition of the unused term "voucher agent". (The introduced version of this bill was prepared by the board for the coordination of child care regulation.)
Effective Date: July 1, 2003
Signed by the Governor: April 14, 2003

Senate Enrolled Act 144
Sexual Offenses
Authors: Bowser, Antich, Long, Wyss
Removes certain defenses related to sexual misconduct with a minor. Makes the offense of sexual misconduct with a minor that involves deadly force, a deadly weapon, or a drug or controlled substance a "crime of violence" for purposes of the law concerning consecutive and concurrent sentencing where the defendant is at least 18 years of age and the victim is 14 or 15 years of age.
Effective Date: January 1, 2001 (retroactive); July 1, 2003
Signed by the Governor: May 8, 2003

Senate Enrolled Act 182
Distribution of Child Care Regulatory Information
Author: Craycraft
Amends the definition of "provider" for purposes of the law concerning child care regulation. Specifies the manner in which the division of family and children must adopt administrative rules and policy statements and provide information to the public concerning the administrative rules and policy statements.
Effective Date: July 1, 2003
Signed by the Governor: April 14, 2003

Senate Enrolled Act 457
Immunization Information
Authors: Lawson, Breaux
Specifies the purposes for which the immunization data registry may be used and specifies who may obtain the information. Requires information concerning the registry to be provided to patients. Provides immunity to certain persons who use the registry. Makes disclosing confidential registry information a Class A misdemeanor.
Effective Date: July 1, 2003
Signed by the Governor: May 1, 2003

House Enrolled Act 1367
Repeat Indecent Offenders
Authors: Stilwell, Foley
Provides that a person commits performing sexual fondling in the presence of a minor, a Class D felony, if the person: (1) engages in sexual intercourse; (2) engages in deviate sexual conduct; or (3) touches or fondles the person's own body; in the presence of a child less than 14 years of age. Provides that a person commits public indecency, a Class A misdemeanor: (1) if the person appears nude in a public place with the intent to arouse the person's own sexual desires or the sexual desires of another person; or (2) if the person is at least 18 years of age and appears nude in a public place with the intent to be seen by a child less than 16 years of age. Makes public indecency a Class D felony if the person has a prior unrelated conviction for public indecency. Provides that a person who appears nude in a nonpublic place with the intent to be seen by persons other than invitees or occupants of that place commits indecent exposure, a Class C misdemeanor. Provides that a person who appears nude in a public place commits public nudity, a Class C misdemeanor. Makes public nudity a Class B misdemeanor if the person intends to be seen by another person, and makes a second offense a Class D felony. Makes public nudity a Class A misdemeanor if the person appears nude in a department of natural resources owned or managed property with the intent to arouse the sexual desires of the person or another person, or on school grounds or in a public park; and makes a second offense a Class D felony.
Effective Date: July 1, 2003
Signed by the Governor: May 1, 2003

Other/Miscellaneous Legislation

House Enrolled Act 1022
Commission on Social Status of Black Males
Authors: Bosma, Brown, Smith, Budak
Establishes a special fund for and repeals the expiration date of the commission on the social status of black males.
Effective Date: July 1, 2003
Signed by the Governor: April 30, 2003

House Enrolled Act 1523
Investment Selections
Authors: Grubb, Whetstone, Dobis
Directs the board of trustees of the public employees' retirement fund (PERF board) to conduct a pilot program concerning implementation of a member's investment selection and the crediting of a member's contributions and earnings in the fund for the defined contribution plan of the legislators' retirement system. Requires the PERF board to report to the pension management oversight commission the results of the program, and if the report includes a finding that the program should be implemented on a permanent basis, to recommend proposed legislation and to provide a schedule to extend the program to all funds for which the PERF board has responsibility.
Effective Date: July 1, 2003
Signed by the Governor: May 1, 2003

House Enrolled Act 1704
Various Department of Health Matters
Authors: C. Brown
Requires physicians and optometrists to report individuals diagnosed with severe visual impairments to the office of the secretary of family and social services instead of the state Department of Health. Requires the office of the secretary of family and social services to produce materials detailing reporting requirements and services available for visually impaired individuals. Requires the office of the secretary of family and social services to report children 17 or under with visual impairements to the Indiana School for the Blind and the division of special education of the Department of Education. For a visually impaired individual less than seventeen (17) years of age, the Indiana School for the Blind: (1) has the primary duty of initially contacting the visually impaired individual or the individual's family; and (2) shall notify the division of disability, aging, and rehabilitative services and the department of education of the school's findings. Contains additional language concerning the Department of Health not germane to education.
Effective Date: July 1, 2003
Signed by the Governor: April 30, 2003

House Enrolled Act 1730
Commission on Hispanic/Latino Affairs
Authors: Aguilera, Ayres, Goodin, Lawson
Establishes the executive commission on Hispanic/Latino affairs. Repeals the legislative commission on Hispanic/Latino affairs. Establishes a special fund for the executive commission on Hispanic/Latino affairs.
Effective Date: Upon Passage
Signed by Governor: May 8, 2003

House Enrolled Act 1814
Property Tax Matters
Author: Crawford
Provides that the administrative orders and procedures act does not apply to the department of local government finance (DLGF). Removes the DLGF and the board of tax review from the review process for economic revitalization area deductions and enterprise zone inventory credits. Requires the county assessor to conduct equalization among townships in the year of a general reassessment. Provides that certain DLGF final determinations are appealable to the tax court. Requires a township trustee to estimate the amount needed for poor relief and the township board to adopt with the township budget a tax rate sufficient to meet estimated cost of poor relief. Permits the DLGF to extend certain deadlines for tax increment replacement purposes. Provides that the procedure for correction of assessment errors does not apply to a utility. Eliminates the requirements for: (1) the DLGF to certify fixed property utility assessments to the counties; (2) a political subdivision to certify to the county auditor a transfer of money from one major budget classification to another within a department; (3) the DLGF to review per diem for certain assessor training; and (4) the division of data analysis to review federal income tax returns. Adjusts a requirement for the county auditor to certify certain information. Limits the time between initiation of certain financings and DLGF approval. Validates certain certifications made by a county auditor after a prescribed date. Waives the filing deadline for the property tax exemption for fraternity property owned by a nonprofit corporation as to property taxes due in certain years. Requires a public utility company to correct an error made by the company on the company's personal property statement by filing an amended statement within six months of the due date of the statement. Makes technical changes.
Effective Date: July 1, 2003
Signed by the Governor: May 8, 2003