Bill Text: IN HB1003 | 2011 | Regular Session | Engrossed
Bill Title: School scholarships.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2011-05-16 - SECTIONS 2 through 10 effective 07/01/2011 [HB1003 Detail]
Download: Indiana-2011-HB1003-Engrossed.html
Citations Affected: IC 6-3.1; IC 20-51.
Synopsis: School scholarships. Increases the school scholarship tax
credits that may be awarded for donations to a scholarship granting
organization. Prohibits a scholarship granting organization from
limiting the availability of scholarships to students of only one
participating school. Provides choice scholarships to students in
families with income that is not more than 150% percent of the amount
required for the individual to qualify for the federal free or reduced
lunch program to pay the costs of tuition and fees at a public or private
elementary school or high school that charges tuition. Requires fair
admissions policies for schools eligible for choice scholarships. Limits
the number of choice scholarships awarded per school year before June
30, 2013. Limits the choice scholarship granted to a student in grade 1
through 8 to $4,500 per school year. Provides consequences for
nonpublic schools who receive: (1) consecutive low category
designations for school performance and improvement; and (2) a
distribution of choice scholarships. Provides for any savings from the
choice scholarships to be used for tuition support for schools. Makes
conforming changes.
Effective: July 1, 2011.
(SENATE SPONSORS _ KRUSE, YODER, BANKS, BUCK, SMITH J, WALKER)
January 20, 2011, read first time and referred to Committee on Education.
February 17, 2011, amended, reported _ Do Pass.
March 29, 2011, read second time, ordered engrossed.
March 30, 2011, engrossed. Read third time, passed. Yeas 56, nays 42.
March 31, 2011, read first time and referred to Committee on Education and Career Development.
April 14, 2011, amended, reported favorably _ Do Pass.
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A BILL FOR AN ACT to amend the Indiana Code concerning
education.
(1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; and
(2) conducts a school scholarship program without limiting the availability of scholarships to students of only one (1) participating school (as defined in IC 20-51-1-6).
(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.
(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.
elementary school or high school that:
(1) is located in Indiana;
(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 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 has legal settlement under IC 20-26-11;
and
(7) submits to the department data required for a category
designation under IC 20-31-8-3.
(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.
(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 1 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.
Chapter 4. Choice Scholarship
Sec. 1. 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 corporation 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.
Sec. 2. (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.
Sec. 3. (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.
Sec. 4. 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 5 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 5 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).
Sec. 5. The state tuition support amount to be used in section
3(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 corporation in which the
eligible individual 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 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 year used in STEP TWO.
Sec. 6. (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.
Sec. 7. (a) The department shall administer this chapter.
(b) The department shall adopt rules under IC 4-22-2 to
implement this chapter.
(c) The department may adopt emergency rules under
IC 4-22-2-37.1 to implement this chapter.
Sec. 8. The department may prescribe forms and methods for
demonstrating eligibility for a choice scholarship under this
chapter.
Sec. 9. (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 under IC 20-31-8-3 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 under IC 20-31-8-3 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 IC 20-31-8-3 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.
Sec. 10. 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 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) and the eligible school providing educational services to the eligible individual.
Sec. 11. 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.
