Bill Text: IN HB1337 | 2013 | Regular Session | Amended


Bill Title: School accountability and turnaround academies.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2013-02-25 - Reread third time: defeated Roll Call 247: yeas 32, nays 62 [HB1337 Detail]

Download: Indiana-2013-HB1337-Amended.html


Reprinted

February 22, 2013





HOUSE BILL No. 1337

_____


DIGEST OF HB 1337 (Updated February 21, 2013 5:28 pm - DI 116)



Citations Affected: IC 20-26; IC 20-31; IC 20-32; noncode.

Synopsis: School accountability and turnaround academies. Provides that academic growth is the primary measure of assessing school performance. Requires the state board of education (state board) to set specific goals for a turnaround academy, and allows the turnaround academy to be operated by a special management team. Provides that a turnaround academy that meets the goals set for it may either be returned to the control of its school corporation or become an independent school. Sets forth provisions concerning the operation of a turnaround academy and an independent school. Requires the state board to have performed an annual analysis showing how school corporation spending correlates to student progress, and requires the department of education to include a copy of the annual analysis on the department's Internet web site. Sets forth consequences for schools that are in the two lowest categories or designations of school performance. Provides that a school corporation may be declared fiscally insolvent and placed into receivership. Creates a designation of "high performing school corporation", and provides that certain statutes and rules may be waived for a high performing school corporation. Provides that a waiver of the requirements for graduation for a student must be approved by the state board. Repeals provisions concerning: (1) graduation standards in effect before July 1, 2010; (2) a parent's request to exempt a student from Core 40 requirement; (3) a student not passing at least three Core 40 courses; (4) a student scoring within the twenty-fifth percentile or lower on a graduation examination; and (5) a student whose parent does not attend a meeting with the student and a counselor. Establishes the select commission on education to study the feasibility of establishing consequences for low-performing school corporations. Makes conforming amendments.

Effective: Upon passage; July 1, 2013.





Behning




    January 17, 2013, read first time and referred to Committee on Education.
    February 19, 2013, amended, reported _ Do Pass.
    February 21, 2013, read second time, amended, ordered engrossed.





Reprinted

February 22, 2013

First Regular Session 118th General Assembly (2013)


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 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.

HOUSE BILL No. 1337



    A BILL FOR AN ACT to amend the Indiana Code concerning education.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 20-26-5-4.5; (13)HB1337.2.1. -->     SECTION 1. IC 20-26-5-4.5, AS ADDED BY P.L.90-2011, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4.5. (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 corporation and whether or not they are licensed under IC 20-28-5), and any other employees necessary to the operation of the school corporation, subject to the approval of the governing body.
    (b) Subject to IC 20-28-7.5, 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.
     (c) Notwithstanding subsection (b), a principal has the final authority when selecting a teacher to be hired for a position under

the principal's oversight.

SOURCE: IC 20-31-2-1.5; (13)HB1337.2.2. -->     SECTION 2. IC 20-31-2-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1.5. "Academic growth" refers to the change in student achievement from one (1) academic year to the following academic year, as measured against Indiana academic standards.
SOURCE: IC 20-31-2-6.2; (13)HB1337.2.3. -->     SECTION 3. IC 20-31-2-6.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6.2. "Independent school" means a public elementary school or secondary school established under IC 20-31-9-8.
SOURCE: IC 20-31-2-6.4; (13)HB1337.2.4. -->     SECTION 4. IC 20-31-2-6.4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6.4. "Lead partner" means an organization that employs research based strategies to yield demonstrable and sustainable results.
SOURCE: IC 20-31-2-6.6; (13)HB1337.2.5. -->     SECTION 5. IC 20-31-2-6.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6.6. "Operated turnaround academy" refers to a public elementary school or secondary school that:
        (1) is subject to IC 20-31-9.5 and to which the state board has assigned a special management team to serve as the public authority having administrative control and direction of the school; and
        (2) for the purpose of federal funding and state reporting requirements is considered a local education agency.

SOURCE: IC 20-31-2-6.8; (13)HB1337.2.6. -->     SECTION 6. IC 20-31-2-6.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6.8. "Performance bond" means a surety bond provided by a special management team under IC 20-31-9-6(c) to ensure that a turnaround academy will meet established performance targets.
SOURCE: IC 20-31-2-7.5; (13)HB1337.2.7. -->     SECTION 7. IC 20-31-2-7.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7.5. "Quality review" means an evaluation of academic quality indicators conducted by the department and chosen team members of a school.
SOURCE: IC 20-31-2-10; (13)HB1337.2.8. -->     SECTION 8. IC 20-31-2-10, AS AMENDED BY P.L.160-2012, SECTION 51, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. "Turnaround academy" means a school that is subject to IC 20-31-9.5 and for the purpose of federal funding only, and state reporting requirements is considered a local educational agency.
SOURCE: IC 20-31-8-1; (13)HB1337.2.9. -->     SECTION 9. IC 20-31-8-1, AS ADDED BY P.L.1-2005, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) The performance of a school's students on the ISTEP program test and other assessments recommended by the education roundtable and approved by the state board are the primary and majority means of assessing a school's improvement. academic growth.
    (b) The education roundtable shall examine and make recommendations to the state board concerning:
        (1) performance indicators to be used as a secondary means of determining school progress;
        (2) expected progress levels, continuous improvement measures, expected levels of academic growth, distributional performance levels, and absolute performance levels for schools; and
        (3) an orderly transition from the performance based accreditation system existing school accountability models to the assessment system set forth in this article.
    (c) The education roundtable shall consider methods of measuring improvement and progress academic growth used in other states in developing recommendations under this section.
SOURCE: IC 20-31-8-2; (13)HB1337.2.10. -->     SECTION 10. IC 20-31-8-2, AS ADDED BY P.L.1-2005, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. (a) In addition to scores on the ISTEP program test and other assessments, the department shall use the performance indicators developed under section 1 of this chapter and the benchmarks and indicators of performance in each school corporation's annual performance report as a secondary means of assessing the improvement performance of each school and school corporation.
    (b) The state board shall adopt rules and the department shall assess improvement school performance in a manner that includes the following manner: process as a significant portion of the determination:
        (1) Compare each school and each school corporation with its own prior performance and not to the performance of other schools or school corporations.
        (2) Compare the results in the annual report under IC 20-20-8 with the benchmarks and indicators of performance established in the plan for the same school.
        (1) Determine a minimal performance level on ISTEP, as recommended by the education roundtable, that reflects expected performance at each grade level. With advice from the education roundtable, the state board may also determine

additional performance benchmarks to be used for measuring academic growth that are greater or less than the minimal performance levels.
        (2) Determine the number of students who exceed the minimal performance levels determined under subdivision (1) and whose academic growth is sufficient to exceed minimal performance levels or higher performance benchmarks in future academic years.
        (3) Determine the number of students who did not exceed the minimal performance levels determined under subdivision (1) but whose academic growth is projected to be sufficient to exceed minimal performance levels or to reach higher performance benchmarks in future years.

        (3) Compare the results for a school by comparing each student's results for each grade with the student's prior year results, with an adjustment for student mobility rate. (4) Determine each school's performance level based on the number of students identified under subdivisions (2) and (3). The education roundtable shall make recommendations concerning the incorporation of a statistical adjustment for student mobility rates into the results.
        (4) Compare the results for a school with the state average and the ninety-fifth percentile level for all assessments and performance indicators. (5) Instead of grade-by-grade assessments at the high school level, the state board, with advice from the education roundtable, may incorporate other performance measures to determine the performance level of a high school.
    (c) Not later than the 2014-2015 school year, the accountability system for school performance must include a measure of student performance in science. If the statewide assessments for science do not include annual measures of performance, the state board may use pass and fail rates and improvements to pass and fail rates to determine performance only for science assessments.

SOURCE: IC 20-31-8-3; (13)HB1337.2.11. -->     SECTION 11. IC 20-31-8-3, AS ADDED BY P.L.1-2005, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. The state board shall establish, with the advice of the education roundtable, a number of categories or designations of school improvement performance based on the improvement that a school makes in performance of the measures determined by the board with the advice of the education roundtable. The categories or designations must reflect various levels of improvement. academic growth of the students in each school.
SOURCE: IC 20-31-8-4; (13)HB1337.2.12. -->     SECTION 12. IC 20-31-8-4, AS ADDED BY P.L.1-2005,

SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. The state board shall place each school in a category or designation of school improvement performance based on the department's findings from the assessment of the improvement of each school academic growth under section 2 of this chapter. The state board must place those schools that do not show improvement and in which less than ninety percent (90%) of the students meet academic standards in the lowest category or designation.

SOURCE: IC 20-31-9-2; (13)HB1337.2.13. -->     SECTION 13. IC 20-31-9-2, AS ADDED BY P.L.1-2005, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. (a) This section applies the first year that a school is placed in the lowest category or designation of school improvement. performance.
    (b) The state board shall place the school and the school corporation on notice that the school is in the lowest category or designation of school improvement. performance. Upon receiving the notice, the governing body shall:
        (1) issue a public notice of the school's lack of improvement; categorization or designation; and
        (2) hold a public hearing in which public testimony is received concerning the lack of improvement. categorization or designation.
    (c) The committee shall revise the school's plan. A revision under this subsection may include any of the following:
        (1) Shifting resources.
        (2) Changing personnel.
        (3) Requesting the state board to appoint an outside team to manage the school or assist in the development of a new plan.
    (d) If the governing body approves a request for the state board to appoint an outside team under subsection (c)(3), the school is considered to be placed under section 3 of this chapter.
     (e) This section expires June 30, 2016.
SOURCE: IC 20-31-9-2.2; (13)HB1337.2.14. -->     SECTION 14. IC 20-31-9-2.2, IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.2. (a) Beginning with the categorizations or designations received for the 2015-2016 school year, this section applies the first year that a school is placed in either of the two (2) lowest categories or designations of school performance. For purposes of this chapter, placement in the next-to-lowest category or designation of school performance in the 2015-2016 school year shall be considered as the first year a school is placed in the category or designation of school performance,

regardless of the school's placement in the 2014-2015 school year.
    (b) The state board shall place the school and the school corporation on notice that the school is in one (1) of the two (2) lowest categories or designations of school performance. Upon receiving the notice, the governing body shall:
        (1) issue a public notice of the school's designation; and
        (2) hold a public hearing in which public testimony is received concerning the categorization or designation. The governing body shall provide written notification of the public hearing to all parents of any student enrolled in the school. The governing body shall forward the minutes of the public meeting to the state board not later than forty-five (45) days after the public meeting is held.
    (c) The committee shall revise the school's plan to define annual goals, including:
        (1) academic goals, including raising the school's school performance category or designation by at least two (2) levels;
        (2) attendance goals for teachers and students;
        (3) goals to increase the measures used to determine placement in a school performance category or designation, such as graduation rates;
        (4) financial management goals; and
        (5) any other goals the committee determines are appropriate for the school.
    (d) A plan revision under subsection (c) may include any of the following:

         (1) Shifting resources.
        (2) Changing personnel.
        (3) Requesting the state board to appoint an outside team to manage the school or assist in the development of a new plan.
    (e) The school shall establish a partnership with an educational service center, a postsecondary educational institution, the department, or another organization approved by the state board to receive assistance in implementing the revised plan.
    (f) If the governing body approves a request for the state board to appoint an outside team under subsection (d)(3), the school is subject to section 3.5 of this chapter.

SOURCE: IC 20-31-9-2.5; (13)HB1337.2.15. -->     SECTION 15. IC 20-31-9-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.5. Beginning with the categorizations or designations received for the 2015-2016 school year and in addition to the requirements of section 2.2 of this

chapter, a school that is placed in the lowest category or designation of school performance for the second consecutive year or any combination of the two (2) lowest categories or designations of school performance for the fourth consecutive year may be subject to one (1) or more of the following actions:
        (1) A governing body may petition the state board for permission to:
            (A) close;
            (B) merge with a nearby school that is in a higher category or designation of school performance;
            (C) change the grade configuration of; or
            (D) change the attendance zone of;
        the school. The state board may grant permission to take the action if the action is in the best interests of the affected students.
        (2) The governing body of the school may petition the state board to immediately restructure the school by presenting a written plan to the state board setting forth the proposed interventions for the school. If the state board approves the petition and accepts the plan, the school:
            (A) operates under the applicable provisions of IC 20-31-9.5; and
            (B) carries forward in the school performance category or designation in which the school is placed at the time the plan is accepted, and is not placed in a different school performance category or designation.

SOURCE: IC 20-31-9-3; (13)HB1337.2.16. -->     SECTION 16. IC 20-31-9-3, AS AMENDED BY P.L.229-2011, SECTION 188, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. (a) This section applies if, in the third year after initial placement in the lowest category or designation of school performance, a school still remains in the lowest category or designation of school performance.
    (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 IC 20-31-9.5; 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.
     (e) This section expires June 30, 2019.
SOURCE: IC 20-31-9-3.5; (13)HB1337.2.17. -->     SECTION 17. IC 20-31-9-3.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.5. (a) Beginning with the categorizations or designations received for the 2015-2016 school year, this section applies if a school is placed in either the:
        (1) lowest category or designation for two (2) consecutive years; or
        (2) two (2) lowest categories or designations of school improvement for four (4) consecutive years.
    (b) In the first year after a school described in subsection (a)(1) is initially placed in the lowest category or designation of school improvement, or in the third year after a school described in subsection (a)(2) is initially placed in the two (2) lowest categories or designations of school improvement, the state board shall do the following:
        (1) Place the school and the school corporation on notice that the school is in one (1) of the two (2) lowest categories or designations of school performance. Upon receiving the notice, the governing body shall:
            (A) issue a public notice of the school's designation; and
            (B) hold a public hearing in which public testimony is received concerning the categorization or designation.
        The governing body shall provide written notification of the public hearing to all parents of any student enrolled in the school. The governing body shall forward the minutes of the public hearing to the state board not later than forty-five (45) days after the public hearing is held.
        (2) Establish and assign to the school an expert team to

conduct a quality review. The expert team:
            (A) must include representatives from the community or region that the school serves; and
            (B) may include:
                (i) school superintendents, members of governing bodies, and teachers from school corporations that are in high categories or designations of school performance;
                (ii) special consultants or advisers; and
                (iii) members of the school corporation's governing body.
    (c) The expert team assigned in subsection (b)(2) 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) After a review conducted under this section, the state board may offer the affected school corporation the opportunity to enter into a memorandum of agreement developed by the state board. The memorandum of agreement must include the following:
        (1) Performance goals the state board expects the school to achieve, including:
            (A) academic goals, including raising the school's school performance category or designation by at least two (2) levels;
            (B) goals to increase the measures used to determine placement in a school performance category or designation, such as graduation rates; and
            (C) any other goals the expert team determines are appropriate for the school.
        (2) Specific interventions, aligned with the findings of the quality review, to improve the academic outcomes of the school.
    (e) A school to which this section applies remains subject to this section until the school:
        (1) is placed in the middle category or designation of school performance, or a higher category or designation of school performance, for two (2) consecutive school years; or
        (2) becomes subject to section 4 or 5 of this chapter.

SOURCE: IC 20-31-9-4; (13)HB1337.2.18. -->     SECTION 18. IC 20-31-9-4, AS AMENDED BY P.L.229-2011, SECTION 189, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) This section applies if, in the fifth year after initial placement in the lowest category or designation of school performance, a school still remains in the lowest category

or designation of school performance.
    (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 intervention under this section becomes a turnaround academy under IC 20-31-9.5.
     (d) This section expires June 30, 2019.

SOURCE: IC 20-31-9-5; (13)HB1337.2.19. -->     SECTION 19. IC 20-31-9-5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Beginning with the categorizations or designations received for the 2015-2016 school year, this section applies if a school is placed in either the:
        (1) lowest category or designation for three (3) consecutive years; or
        (2) two (2) lowest categories or designations of school improvement for six (6) consecutive years.
    (b) In the second year after a school described in subsection (a)(1) is initially placed in the lowest category or designation of school improvement or in the fifth year after a school described in subsection (a)(2) is initially placed in the two (2) lowest categories or designations of school improvement, 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:

             (A) Merging the school with a nearby school that is in a higher category or designation of school performance.
            (B) Assigning a special management team to operate all or part of the school.
            (C) Implementing the department's recommendations for improving the school.
            (D) Closing the school.
            (E) Implementing other options for school intervention, including those expressed at the public hearing.
            (F) Closing the school and reopening it as a charter school or converting the school to a charter school.
        (2) If the state board determines that intervention will improve the school, implement at least one (1) of the options listed in subdivision (1).

         (3) Direct the department to collect student and school information and data to inform a turnaround plan to be developed under section 6 of this chapter.
     (c) The governing body shall provide parents of students who attend the school written notification of the public hearing described in subsection (b)(1).
     (d) The state board may alter at any time the intervention taken under this section.
SOURCE: IC 20-31-9-6; (13)HB1337.2.20. -->     SECTION 20. IC 20-31-9-6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6. (a) If the state board imposes an intervention under this chapter, the state board shall determine the number of years the school or school corporation is subject to the intervention. The state board may decrease the number of years, or renew the intervention for additional periods if the state board considers the renewal to be necessary. Not later than thirty (30) days after the state board approves the placement of a school or school corporation in a category or designation of school performance each year, the state board shall determine whether it will continue the intervention at each school or school corporation that is subject to an intervention.
    (b) After the state board determines that an intervention is necessary for a school, the department, with the state board's approval
, shall create a turnaround plan for the school, working with any special management team the state board wishes to include in the turnaround plan. The turnaround plan must:
        (1) designate the school as a turnaround academy;
        (2) explain the intervention to be implemented;
        (3) set forth the parties primarily responsible for the intervention, including any special management teams;
        (4) set forth the time period for the intervention;
        (5) define annual goals for the turnaround academy, including:
            (A) academic goals, including raising the school's school performance category or designation by at least two (2) levels;
            (B) attendance goals for teachers and students;
            (C) goals to increase the measures used to determine placement in a school performance category or designation, such as graduation rate;
            (D) financial management goals; and
            (E) any other goals the department determines are appropriate for the school;
        (6) identify the consequences for failing to meet the goals; and
        (7) be approved by the state board.
    (c) If the state board enters into a contract with a special management team as part of a school intervention, the state board may authorize the special management team to offer instruction to other grade levels that are not currently provided by the school subject to the intervention.
    (d) If the state board enters into a contract with a special management team as a part of a school intervention, the state board may require the special management team to secure a performance bond, in an amount determined by the state board, before the contract is finalized.

    (e) If the state board enters into a contract with a special management team as part of the school intervention plan, the governing body shall immediately provide the special management team:
        (1) access to student addresses and telephone numbers; and
        (2) full access to the school building.
    (f) The school corporation shall provide the special management team access to the academic records of a student who attends a school subject to intervention at the time the student's parent indicates to the school corporation the student's intent to enroll in the turnaround academy operated by the special management team.
    (g) The state board shall adopt rules under IC 4-22-2 relating to the disposition of personal property contained in a school at the time the state board decides to convert the school into a

turnaround academy.

SOURCE: IC 20-31-9-7; (13)HB1337.2.21. -->     SECTION 21. IC 20-31-9-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) Each year, the state board shall request that the department, another state agency, or a research institute analyze data and information relating to each turnaround academy's attainment of the academy's annual goals.
    (b) In the third year of an intervention, the state board shall determine whether the special management team has reached the goals identified for the turnaround academy under this chapter. If the goals have been reached, the state board may have the performance bond required under section 6 of this chapter set aside.
    (c) If, after the period designated for the intervention, the state board determines that the intervention has failed to reach the goals set for the turnaround academy, the state board may:
        (1) instruct the department to enter into an agreement with a new special management team; or
        (2) implement additional interventions under section 5 of this chapter.

SOURCE: IC 20-31-9-8; (13)HB1337.2.22. -->     SECTION 22. IC 20-31-9-8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. (a) The state board may release a turnaround academy from a special management team:
        (1) at the end of the term set forth in section 6 of this chapter; or
        (2) earlier than under subdivision (1), if the turnaround academy has attained the goals set.
    (b) When a turnaround academy is released from a special management team, the state board may:
        (1) return the designated school to the school corporation that controlled the school before the school became a turnaround academy; or
        (2) designate the school as an independent school.
    (c) If the state board designates a school as an independent school under subsection (b)(2), the department shall assign the independent school a separate school identification number.
SOURCE: IC 20-31-9-9; (13)HB1337.2.23. -->     SECTION 23. IC 20-31-9-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. (a) An independent school created under section 8 of this chapter:
        (1) must be nonsectarian and nonreligious;
        (2) must be open to any student who resides in Indiana;
        (3) may not establish admission policies or limit student admissions in any manner in which a public school is not allowed to establish admission policies or limit admissions;
        (4) must offer admission to each student who resides in the independent school's former attendance zone; and
        (5) except as provided in subsections (b) and (c), must enroll any eligible student who submits a timely application for admission.
    (b) This subsection applies if the number of applicants for a program, class, grade level, or building exceeds the capacity of the program, class, grade level, or building. If an independent school receives a greater number of applications than there are spaces for students:
        (1) subsection (a)(3) and (a)(4) continue to apply; and
        (2) each timely applicant outside of the former attendance zone of the school must be given an equal chance of admission.
The independent school must determine which applicant or applicants will be admitted to the program, class, grade level, or building by random drawing in a public meeting.
    (c) An independent school may limit new admissions to:
        (1) ensure that a student who attends the independent school during a school year may continue to attend the independent school in subsequent school years; and
        (2) allow the siblings of a student who attends the independent school to attend the independent school.

SOURCE: IC 20-31-9-10; (13)HB1337.2.24. -->     SECTION 24. IC 20-31-9-10 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. (a) An independent school created under section 8 of this chapter shall be governed initially by a governing body appointed as follows:
        (1) If the school is located in:
            (A) a city, the mayor of the city;
            (B) a town, the town manager of the town; or
            (C) an unincorporated area of a county, the county commissioners of the county;
        in which the school is located shall appoint three (3) members.
        (2) The mayor of the city or town manager of the town, if any, in which the school is located shall forward at least ten (10) names to the state board within a reasonable time period set by the state board, from which the state board shall appoint two (2) members.
        (3) The county commissioners of the county in which the school is located shall forward at least ten (10) names to the state board within a reasonable time period set by the state board, from which the state board shall appoint:
            (A) two (2) members, if the school is located in a city or town; or
            (B) four (4) members, if the school is located in an unincorporated area of the county.
The initial governing body shall determine the length of member terms, term limits, and other governing matters, in accordance with IC 20-23-8-7 through IC 20-23-8-8. The governing body shall submit the organization plan to the state board.
    (b) The governing body of an independent school created under section 8 of this chapter may do any of the following:
        (1) Enter into an agreement with the school corporation in which the school is located for the operation of the school. Before an agreement is finalized, the state board:
            (A) must approve the transfer of operations; and
            (B) may set requirements for the operation of the school.
        (2) Join with another independent school created under section 8 of this chapter to form a single school.
        (3) Apply to an appropriate sponsor to become a charter school.
        (4) Enter into a contract with a management team to operate the school or any part of the school.
        (5) Enter into a contract with another school to provide educational services.
        (6) Operate the school.
    (c) An independent school created under section 8 of this chapter has the power to:
        (1) sue and be sued in its own name;
        (2) for educational purposes, acquire real and personal property or an interest in real and personal property by purchase, gift, grant, devise, or bequest;
        (3) convey property; and
        (4) enter into contracts in its own name, including contracts for services.
    (d) An independent school created under section 8 of this chapter may not do the following:
        (1) Charge tuition to any student residing within the school's attendance zone. However, the school may charge tuition for:
            (A) a preschool program, unless charging tuition for the

preschool program is barred under federal law; or
            (B) a latch key program;
        if the school provides those programs.
        (2) Except for a foreign exchange student who is not a United States citizen, enroll a student who is not a resident of Indiana.
    (e) An independent school created under section 8 of this chapter is not prohibited from delivering instructional services:
        (1) through the Internet or another online arrangement; or
        (2) in any manner by computer;
if the instructional services are provided to students enrolled in the school in a manner that complies with any procedures adopted by the department concerning online and computer instruction in public schools.
    (f) An independent school created under section 8 of this chapter shall comply with applicable federal and state laws and with the Constitution of the United States and the Constitution of the State of Indiana.
    (g) The accountability provisions of this chapter apply to an independent school created under section 8 of this chapter.

SOURCE: IC 20-31-9-11; (13)HB1337.2.25. -->     SECTION 25. IC 20-31-9-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 11. (a) The state board shall request that the department, another state agency, or a research institute develop and perform an annual analysis showing how school and school corporation spending correlate to student progress. The analysis must identify school buildings and school corporations using resource allocation practices that contribute to high academic performance and cost effective operations. The analysis may include the use of student growth or improvement.
    (b) The department shall include a copy of the annual analysis on the department's Internet web site.
    (c) The state board shall adopt rules under IC 4-22-2 to implement this section.

SOURCE: IC 20-31-9.5-1; (13)HB1337.2.26. -->     SECTION 26. IC 20-31-9.5-1, AS ADDED BY P.L.229-2011, SECTION 190, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) None of the following may be considered a school employer under IC 20-29-6 with respect to a turnaround academy:
        (1) The state.
        (2) The state board.
        (3) A special management team assigned by the state board under

IC 20-31-9-4 IC 20-31-9 to operate a school as a turnaround academy.
    (b) A special management team assigned under IC 20-31-9-4 IC 20-31-9 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 a contract entered into under IC 20-29.
     (c) A special management team is not required to employ teachers and administrators through teacher contracts established by the state superintendent under IC 20-28-6-3.
    (d) A special management team may exercise any authority granted by the state board under IC 20-31-9.

SOURCE: IC 20-31-9.5-2; (13)HB1337.2.27. -->     SECTION 27. IC 20-31-9.5-2, AS ADDED BY P.L.229-2011, SECTION 190, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. (a) If the state board assigns a special management team under IC 20-31-9-4 IC 20-31-9 to operate a school as a turnaround academy, for as long as the special management team operates the turnaround academy:
        (1) the special management team shall continue to use the school building, the accompanying real property, and the building's contents, equipment, and supplies; and
        (2) the school corporation shall continue to:
            (A) provide the special management team funding to 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
            (B) maintain and repair the buildings and grounds consistent with the maintenance and repair to the school corporation's other buildings and grounds; and
        The school corporation shall consult with the special management team regarding these matters.
         (3) the special management team shall determine whether the school corporation will provide services or resources to meet the requirements of this section.
    (b) If the special management team contracts with a school corporation for goods and services with a school corporation that previously operated the school currently operated by the special management team, 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.
    (c) 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.

SOURCE: IC 20-31-9.5-3; (13)HB1337.2.28. -->     SECTION 28. IC 20-31-9.5-3, AS ADDED BY P.L.229-2011, SECTION 190, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. (a) Turnaround academies are eligible to receive building and technology loans administered by the state board from the common school fund.
    (b) A student who attends a turnaround academy or another school subject to intervention under this chapter remains, under IC 20-43-4-1, an eligible pupil of the school corporation where the student has legal settlement.
    (c) 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.
    (d) The department shall do the following:
        (1) 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. Subject to subsection (e), the amount withheld under this subdivision may not exceed the total per pupil funding for the affected attributable to the students included in the school's most recent ADM and adjusted ADM determined under IC 20-43-4. Tuition support includes basic tuition support under IC 20-43-6, special education grants under IC 20-43-7, career and technical education grants under IC 20-43-8, primetime program distributions under IC 20-43-9, other tuition support grants under IC 20-43-10, and any grants funded by the general assembly.
        (2) 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 IC 20-31-9-4 IC 20-31-9 to operate the school as a an operated turnaround academy.
        (3) Make payments under the contracts entered into under subdivision (2) with funds withheld from the school corporation under subdivision (1).
     (e) This subsection applies to amounts withheld from a school corporation to make payments under a contract with a special management team during the second six (6) months of the calendar year in which a school within the school corporation begins

operating as a turnaround academy. The amount of state tuition support and federal funds that the department may withhold from a school corporation may not exceed the total per pupil funding attributable to the students counted in the initial ADM and adjusted ADM determined under IC 20-43-4 for the school after it begins operating as a turnaround academy. The department shall adjust the amounts withheld from the school corporation on a pro rata basis over a period not to exceed six (6) months from the date on which the ADM and adjusted ADM are determined under IC 20-43-4.

SOURCE: IC 20-31-9.5-4; (13)HB1337.2.29. -->     SECTION 29. IC 20-31-9.5-4, AS ADDED BY P.L.229-2011, SECTION 190, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) Any student who lives in the attendance area served by a school that is 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.
     (b) A turnaround academy may enroll a student who resides anywhere in Indiana.
    (c) If a student who attends a turnaround academy and does not live in the attendance zone served by the turnaround academy chooses to participate in academic or athletic programs of the turnaround academy, the transferor school corporation or an association (as defined in IC 20-26-14-1) may not inhibit the student's ability to participate in any level of academic or athletic programs of the turnaround academy, unless the transfer is a result of undue influence by the turnaround academy's administrators or athletic coaches.
    (d) A school corporation is not required to provide transportation for a student who attends a turnaround academy and does not live in the attendance zone served by the turnaround academy, except as required under 42 U.S.C. 11431, any applicable court desegregation order, or the individual education plan of a student who receives special education services as required under 34 CFR 300.320 and 511 IAC 7.

SOURCE: IC 20-31-9.5-8; (13)HB1337.2.30. -->     SECTION 30. IC 20-31-9.5-8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. (a) A school corporation shall continue debt service payments on the school corporation's debt that is attributable to a turnaround academy.
    (b) If the state board assigns a special management team to a school, the state board shall determine the appropriate parties to

enter into a contract that includes the following provisions:
        (1) The length of the contract.
        (2) The level of services provided.
        (3) The entity responsible for providing necessary services to the school and students in the school.
        (4) Any other provisions the parties consider necessary.
    (c) If the state board assigns a lead partner to a school, the department, the lead partner, and the school corporation shall enter into a contract that includes the following provisions:
        (1) The length of the contract.
        (2) Consideration.
        (3) Performance goals, which may not be less rigorous than those established under IC 20-31-8.
        (4) Cancellation procedures.
        (5) Renewal procedures.
        (6) Any other provisions the department and the special management team consider necessary.
    (d) A special management team and a school corporation may enter into a contract for the school corporation to provide any services for a school that are in the best interest of the students who attend the school. A contract shall specify the length of time, level of services, and entity responsible for providing necessary services, including the following services:
        (1) Food service.
        (2) Educational and administrative technology and technology support.
        (3) Special education services.
        (4) Career and technical education services.
        (5) Custodial services.
        (6) Instructional services in a particular curriculum area.
        (7) Textbooks and supplemental materials.
        (8) Student services.
        (9) Police and probation services.

        (10) Any other provisions the school corporation and the special management team consider necessary.
    (e) A school corporation and a special management team may enter into a contract for additional services.
    (f) The state board shall resolve any disputes that arise in the negotiation or execution of a contract under subsections (b), (c), (d), and (e). The decision of the state board is the final agency action under IC 4-21.5.
    (g) A school corporation in which a special management team

is assigned to operate an operated turnaround academy shall offer the special management team the opportunity to assume any lease or contract for equipment, including photocopying equipment and computer hardware.

SOURCE: IC 20-31-9.5-9; (13)HB1337.2.31. -->     SECTION 31. IC 20-31-9.5-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. (a) A special management team shall employ teachers, other school employees, and independent contractors that are:
        (1) described in the contract between the department and the special management team under section 8 of this chapter; and
        (2) necessary for the special management team to fulfill the special management team's responsibilities under this chapter.
    (b) Individuals employed by the special management team under this section are entitled to participate in insurance benefits offered by the special management team or offered to state employees.
    (c) Individuals employed by the special management team under this section are entitled to participate in:
        (1) a retirement program offered by the special management team;
        (2) the state teachers' retirement fund created by IC 5-10.4; or
        (3) the public employees' retirement fund created by IC 5-10.3.

SOURCE: IC 20-31-9.5-10; (13)HB1337.2.32. -->     SECTION 32. IC 20-31-9.5-10 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. (a) A school corporation may not take an action adverse to a special management team's operation of a school, services provided by lead partners, or implementation of an intervention ordered by the state board, including an unreasonable refusal to enter into a contract for services under section 8 of this chapter.
    (b) A school corporation may not take an action to dispose of or cloud the title of real property on which a school that is subject to this chapter is located.
    (c) A school corporation may not remove or dispose of personal property located in, or located outside and assigned to, a school that is subject to this chapter.
    (d) If the state board determines that a school corporation has taken an action prohibited under subsections (a) through (c), the

state board may take one (1) or more of the following actions:
        (1) Order the department to withhold federal or state funds to which the school corporation would otherwise be entitled to facilitate the full implementation of the special management team's operation of a school, the lead partner's assistance, or other intervention.
        (2) Order the department to pursue any available legal or equitable remedies.
        (3) Amend the intervention.
        (4) Order the special management team or lead partner to carry out the intervention notwithstanding the school corporation's adverse action.
    (e) Adverse action under this section may be considered misconduct in office or willful neglect of duty under IC 20-28-5-7.

SOURCE: IC 20-31-9.5-11; (13)HB1337.2.33. -->     SECTION 33. IC 20-31-9.5-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 11. A school corporation may not change the assignment of students to schools in the school corporation in a manner that changes significantly the number or grade levels of students assigned to a school that is subject to this chapter without the agreement of the special management team assigned to the school.
SOURCE: IC 20-31-9.5-12; (13)HB1337.2.34. -->     SECTION 34. IC 20-31-9.5-12 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12. (a) A special management team shall comply with IC 5-14-1.5 and IC 5-14-3.
    (b) A special management team shall comply with the financial reporting requirements established by the state board of accounts under IC 5-11-1.

SOURCE: IC 20-31-12; (13)HB1337.2.35. -->     SECTION 35. IC 20-31-12 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]:
     Chapter 12. High Performing School Corporations
    Sec. 1. As used in this chapter, "high performing school corporation" means a school corporation:
        (1) that for at least two (2) consecutive school years has been placed in the highest category or designation of school performance; and
        (2) all schools within which have placed in the two (2) highest categories or designations of school performance for at least two (2) consecutive school years.
    Sec. 2. The department shall designate a school corporation

described in section 1 of this chapter as a high performing school corporation.
    Sec. 3. (a) The state board may waive any rule adopted by the state board for a high performing school corporation.
    (b) The state board may waive the following statutes for a high performing school corporation:
        (1) IC 20-30-2-2 (length of student instructional days).
        (2) IC 20-30-2-3 (minimum number of student instructional days).
        (3) IC 20-30-2-4 (penalty for failure to conduct minimum number of student instructional days).
        (4) IC 20-30-2-7 (minimum length of school term).
        (5) IC 20-30-14-2(6) (application requirements for community or volunteer service credits).
        (6) IC 20-31-5-1 through IC 20-31-5-6 (strategic and continuous school improvement and achievement plan).
        (7) IC 20-31-4-6(3) (curriculum offerings required for full accreditation status).
    (c) The department shall consider the higher performing status of a high performing school corporation when reviewing the school corporation's grant applications or applications of schools in the high performing school corporation.
    Sec. 4. If a school corporation is placed in one (1) of the four (4) lowest categories or designations of school performance, or if a school in the school corporation is placed in one (1) of the three (3) lowest categories or designations of school performance, the school corporation is no longer a high performing school corporation, and any rules or statutes that have been waived for the school corporation are in effect for the school corporation.
    Sec. 5. A school corporation and each school within the school corporation must have full accreditation status for the school corporation to be designated as a high performing school corporation.

SOURCE: IC 20-31-13; (13)HB1337.2.36. -->     SECTION 36. IC 20-31-13 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]:
     Chapter 13. Innovative Plans for Student Performance
    Sec. 1. This chapter applies to:
        (1) a school corporation that has been designated as a high performing school corporation under IC 20-31-12 and chooses to implement this chapter; and
        (2) a school approved by the state board to implement this

chapter after submitting a plan under this chapter.
     Sec. 2. (a) IC 20-31 applies to a school corporation or school that implements this chapter. The composition of a local school improvement committee is determined under IC 20-31-5.
    (b) The plan developed and implemented by the governing body under this chapter must contain general guidelines for decisions by educators in each school to improve student achievement in the school.
    (c) The governing body's plan must provide for the publication to other schools in the school corporation, the department, and the general community those:
        (1) processes;
        (2) innovations; and
        (3) approaches;
that have led individual schools in the school corporation to significant improvement in student achievement.
    Sec. 3. (a) Educators in each school are responsible for improving student achievement in the school and may develop the educators' own school plan to achieve improvement that:
        (1) has a cost that does not exceed the amount allocated to the school under section 6 of this chapter; and
        (2) is not subject to a collective bargaining agreement under IC 20-29.
    (b) Educators may use traditional or innovative techniques that the educators believe will:
        (1) best maintain a secure and supportive educational environment; and
        (2) improve student achievement.
    Sec. 4. Each school's plan under this chapter may include the development and maintenance of efforts to increase involvement by parents, the community, or both, in educational activities.
    Sec. 5. School plans under this chapter must promote:
        (1) increased options for; and
        (2) innovative and successful approaches to;
improving student achievement.
    Sec. 6. The approved general fund budget for each school for a school year must be, as nearly as is reasonable and practicable, proportionate to the total general fund budget for the school city in the same ratio as the school's estimated ADM compares to the school city's estimated ADM for that school year.
    Sec. 7. (a) Each school's educators may:
        (1) determine the educational resources, goods, and services

that are necessary and appropriate for improving student performance in the school; and
        (2) obtain or purchase the educational resources, goods, and services.
    (b) Purchases and acquisitions under this section are subject to:
        (1) the general guidelines developed by the board; and
        (2) the school's budget.
    (c) Educators may choose to allocate additional funds to the salaries of teachers rated as effective or highly effective under IC 20-28-11.5.
    Sec. 8. Subject to the general guidelines developed by the board and after consulting with the school's teachers, each school's administrators may determine the:
        (1) sources of; and
        (2) part of;
the school's available budget allocated for noneducational goods and services.
    Sec. 9. (a) If, as a result of a school's efforts to incur less expense than was budgeted in a fiscal year, the school has excess general fund money after the school's expenses for the fiscal year are paid in full, the school retains control of the excess.
    (b) The school shall use excess general fund money retained under this section during the following school year to implement the school's plan under this chapter.
    (c) The board may not consider a school's excess general fund money retained under this section when setting or approving the school's budget for subsequent years.
    Sec. 10.
The state board may waive the following statutes for a high performing school corporation (as defined in IC 20-31-12-1):
        (1) IC 20-30-2-2 (length of student instructional days).
        (2) IC 20-30-2-3 (minimum number of student instructional days).
        (3) IC 20-30-2-4 (penalty for failure to conduct minimum number of student instructional days).
        (4) IC 20-30-2-7 (minimum length of school term).
        (5) IC 20-30-14-2(6) (application requirements for community or volunteer service credits).
        (6) IC 20-31-4-6(3) (curriculum offerings required for full accreditation status).
        (7) IC 20-31-5-1 through IC 20-31-5-6 (strategic and continuous school improvement and achievement plan).

SOURCE: IC 20-31-14; (13)HB1337.2.37. -->     SECTION 37. IC 20-31-14 IS ADDED TO THE INDIANA CODE

AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]:
     Chapter 14. Receivership
    Sec. 1. (a) This section applies after June 30, 2013.
    (b) The state board may categorize a school corporation as fiscally insolvent based on criteria established by the state board under subsection (e).
    (c) If the state board categorizes a school corporation as fiscally insolvent, the state board shall place the school corporation on notice that the school corporation has been categorized as fiscally insolvent. Upon receiving the notice, the governing body shall:
        (1) issue a notice of the school corporation's categorization as fiscally insolvent; and
        (2) hold a public hearing in which public testimony is received concerning the categorization of fiscal insolvency. The governing body shall forward the minutes of the public hearing to the state board not later than forty-five (45) days after the public hearing is held.
    (d) Upon receiving the minutes of the public hearing, the state board may place the school corporation that is designated as fiscally insolvent in receivership as provided in this chapter.
    (e) The state board shall adopt rules under IC 4-22-2 to establish criteria for categorizing a school corporation as fiscally insolvent.
    Sec. 2. (a) Subject to subsection (b), the state board shall select the receiver for a school corporation under this chapter.
    (b) The state board may grant the power to select a receiver for a school corporation to one (1) or more of the following entities, as applicable to the school corporation based on the school corporation's location:
        (1) A judge of a circuit or superior court.
        (2) The executive of a city.
        (3) The legislative body of a city.
        (4) The board of commissioners of a county.
        (5) The fiscal body of a county.
        (6) The legislative body of a town.
        (7) The executive of a township.
        (8) The legislative body of a township.
        (9) The executive and legislative body of a township, jointly.
        (10) The executives and legislative bodies of more than one (1) township, jointly.
    (c) If the state board grants the power to select a receiver to an

entity set forth in subsection (b), the state board may maintain the right to approve or reject the entity's selection.
    (d) An entity that has the ability to select a receiver under subsection (b) may elect to serve as the receiver.
    Sec. 3. For each year a school corporation is placed in receivership, the state board shall require the following:
        (1) Consideration of:
            (A) personnel;
            (B) management;
            (C) plan;
            (D) policy; and
            (E) budget;
        changes for the school to improve student performance at the school.
        (2) Identification of significant:
            (A) management;
            (B) personnel;
            (C) plan;
            (D) policy; or
            (E) budget;
        changes that in the board's judgment must be implemented to improve the school's performance.
    Sec. 4. (a) If a school is placed in receivership, the receiver must take action to raise the school corporation's level of performance. Actions that the receiver may take to raise the performance of a school corporation in receivership include the following:
        (1) Shifting resources.
        (2) Changing or removing:
            (A) school principals;
            (B) teachers;
            (C) administrators; or
            (D) other staff.
        (3) Establishing a new educational plan for the school corporation or schools within the school corporation.
        (4) Contracting with:
            (A) a for-profit organization;
            (B) a nonprofit organization; or
            (C) an individual;
        to manage the school corporation or schools within the school corporation.
        (5) Canceling, modifying, or renegotiating existing contracts.
        (6) Modifying the grade configurations of schools in the school

corporation.
        (7) Converting any school in the school corporation to a charter school.
        (8) Closing any school in the school corporation.
        (9) Any other management, personnel, or policy changes that the receiver expects to:
            (A) raise the performance of the school; and
            (B) avoid continuing receivership status for the school;
        in the following school year.
    (b) If this chapter is inconsistent with any other law relating to:
        (1) education;
        (2) teachers; or
        (3) common schools;
this chapter governs.

SOURCE: IC 20-32-2-2.3; (13)HB1337.2.38. -->     SECTION 38. IC 20-32-2-2.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2.3. "Graduation examination" refers to the assessment or assessments determined under IC 20-32-5-15(2).
SOURCE: IC 20-32-4-0.3; (13)HB1337.2.39. -->     SECTION 39. IC 20-32-4-0.3 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 0.3. Notwithstanding the amendments made to section 1 of this chapter by P.L.105-2005, the following apply before July 1, 2010:
        (1) To be eligible to graduate from high school, each student is required to meet:
            (A) the academic standards tested in the graduation examination; and
            (B) any additional requirements established by the governing body.
        (2) A student who does not meet the academic standards tested in the graduation examination shall be given the opportunity to be tested during each semester of each grade following the grade in which the student is initially tested until the student achieves a passing score.
        (3) A student who does not achieve a passing score on the graduation examination may be eligible to graduate if all the following occur:
            (A) The principal of the school the student attends certifies that the student will within one (1) month of the student's scheduled graduation date successfully complete all components of the Core 40 curriculum as established by the Indiana state board of education under IC 20-30-10.
            (B) The student otherwise satisfies all state and local graduation requirements.
        (4) A student who does not achieve a passing score on the graduation examination and who does not meet the requirements of subdivision (3) may be eligible to graduate if the student does all the following:
            (A) Takes the graduation examination in each subject area in which the student did not achieve a passing score at least one (1) time every school year after the school year in which the student first takes the graduation examination.
            (B) Completes remediation opportunities provided to the student by the student's school.
            (C) Maintains a school attendance rate of at least ninety-five percent (95%) with excused absences not counting against the student's attendance.
            (D) Maintains at least a "C" average or the equivalent in the courses comprising the credits specifically required for graduation by rule of the board.
            (E) Obtains a written recommendation from a teacher of the student in each subject area in which the student has not achieved a passing score. The recommendation must:
                (i) be concurred in by the principal of the student's school; and
                (ii) be supported by documentation that the student has attained the academic standard in the subject area based upon tests other than the graduation examination or classroom work.
            (F) Otherwise satisfies all state and local graduation requirements.
        (5) This subdivision applies to a student who is a child with a disability (as defined in IC 20-35-1-2). If the student does not achieve a passing score on the graduation examination, the student's case conference committee may determine that the student is eligible to graduate if the case conference committee finds the following:
            (A) The student's teacher of record, in consultation with a teacher of the student in each subject area in which the student has not achieved a passing score, makes a written recommendation to the case conference committee. The recommendation must:
                (i) be concurred in by the principal of the student's school; and
                (ii) be supported by documentation that the student has attained the academic standard in the subject area based upon tests other than the graduation examination or classroom work.
            (B) The student meets all the following requirements:
                (i) Retakes the graduation examination in each subject area in which the student did not achieve a passing score as often as required by the student's individualized education program.
                (ii) Completes remediation opportunities provided to the student by the student's school to the extent required by the student's individualized education program.
                (iii) Maintains a school attendance rate of at least ninety-five percent (95%) to the extent required by the student's individualized education program with excused absences not counting against the student's attendance.
                (iv) Maintains at least a "C" average or the equivalent in the courses comprising the credits specifically required for graduation by rule of the board.
                (v) Otherwise satisfies all state and local graduation requirements.
SOURCE: IC 20-32-4-1; (13)HB1337.2.40. -->     SECTION 40. IC 20-32-4-1, AS ADDED BY P.L.105-2005, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) Except as provided in subsection (b), a student must meet:
        (1) the academic standards tested in the graduation examination; and
        (2) any additional requirements established by the governing body of the student's school corporation;
to be eligible to graduate.
    (b) Except as provided in sections 4, 5, and 6 7, 8, 9, and 10 of this chapter, beginning with the class of students who expect to graduate during the 2010-2011 school year, each student is required to meet:
        (1) the academic standards tested in the graduation examination;
        (2) the Core 40 course and credit requirements adopted by the state board under IC 20-30-10; and
        (3) any additional requirements established by the governing body;
to be eligible to graduate.
SOURCE: IC 20-32-4-4; (13)HB1337.2.41. -->     SECTION 41. IC 20-32-4-4, AS AMENDED BY P.L.185-2006, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. Beginning with the 2005-2006 school year, A

student who does not achieve a passing score on the graduation examination and who does not meet the requirements of section 1 of this chapter may be eligible to graduate if the student does all the following:
        (1) Takes the graduation examination in each subject area in which the student did not achieve a passing score at least one (1) time every school year after the school year in which the student first takes the graduation examination.
        (2) Completes remediation opportunities provided to the student by the student's school.
        (3) Maintains a school attendance rate of at least ninety-five percent (95%) with excused absences not counting against the student's attendance.
        (4) Maintains at least a "C" average or the equivalent in the courses comprising the credits specifically required for graduation by rule of the state board.
        (5) Otherwise satisfies all state and local graduation requirements.
        (6) Either:
            (A) completes:
                (i) the course and credit requirements for a general diploma, including the career academic sequence;
                (ii) a workforce readiness assessment; and
                (iii) at least one (1) career exploration internship, cooperative education, or workforce credential recommended by the student's school; or
            (B) obtains a written recommendation from a teacher of the student in each subject area in which the student has not achieved a passing score on the graduation examination. The written recommendation must be concurred in by the principal of the student's school and be supported by documentation that the student has attained the academic standard in the subject area based on:
                (i) tests other than the graduation examination; or
                (ii) classroom work.
         (7) Is approved to receive a waiver by the state board.

SOURCE: IC 20-32-4-5; (13)HB1337.2.42. -->     SECTION 42. IC 20-32-4-5, AS ADDED BY P.L.1-2005, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) This section applies to a student who is a child with a disability (as defined in IC 20-35-1-2).
    (b) If the student does not achieve a passing score on the graduation examination, the student's case conference committee may determine that the student is eligible to graduate if the case conference committee

finds the following:
        (1) The student's teacher of record, in consultation with a teacher of the student in each subject area in which the student has not achieved a passing score, makes a written recommendation to the case conference committee. The recommendation must:
            (A) be concurred in by the principal of the student's school; and
            (B) be supported by documentation that the student has attained the academic standard in the subject area based on:
                (i) tests other than the graduation examination; or
                (ii) classroom work.
        (2) The student meets all the following requirements:
            (A) Retakes the graduation examination in each subject area in which the student did not achieve a passing score as often as required by the student's individualized education program.
            (B) Completes remediation opportunities provided to the student by the student's school to the extent required by the student's individualized education program.
            (C) Maintains a school attendance rate of at least ninety-five percent (95%) to the extent required by the student's individualized education program with excused absences not counting against the student's attendance.
            (D) Maintains at least a "C" average or the equivalent in the courses comprising the credits specifically required for graduation by rule of the state board.
            (E) Otherwise satisfies all state and local graduation requirements.
             (F) Is approved to receive a waiver by the state board.

SOURCE: IC 20-32-4-7; (13)HB1337.2.43. -->     SECTION 43. IC 20-32-4-7 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 7. Upon the request of a student's parent, the student may be exempted from the Core 40 curriculum requirement set forth in section 1 of this chapter and be required to complete the general curriculum to be eligible to graduate. Except as provided in section 10 of this chapter, the student's parent and the student's counselor (or another staff member who assists students in course selection) shall meet to discuss the student's progress. Following the meeting, the student's parent shall determine whether the student will achieve greater educational benefits by:
        (1) continuing the general curriculum; or
        (2) completing the Core 40 curriculum.
SOURCE: IC 20-32-4-8; (13)HB1337.2.44. -->     SECTION 44. IC 20-32-4-8 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 8. This section applies to a student who does not pass at

least three (3) courses required under the Core 40 curriculum. Except as provided in section 10 of this chapter, the student's parent and the student's counselor (or another staff member who assists students in course selection) shall meet to discuss the student's progress. Following the meeting, the student's parent shall determine whether the student will achieve greater educational benefits by:
        (1) continuing in the Core 40 curriculum; or
        (2) completing the general curriculum.

SOURCE: IC 20-32-4-9; (13)HB1337.2.45. -->     SECTION 45. IC 20-32-4-9 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 9. This section applies to a student who receives a score on the graduation examination that is in the twenty-fifth percentile or lower when the student takes the graduation examination for the first time. Except as provided in section 10 of this chapter, the student's parent and the student's counselor (or another staff member who assists students in course selection) shall meet to discuss the student's progress. Following the meeting, the student's parent shall determine whether the student will achieve greater educational benefits by:
        (1) continuing in the Core 40 curriculum; or
        (2) completing the general curriculum.
SOURCE: IC 20-32-4-10; (13)HB1337.2.46. -->     SECTION 46. IC 20-32-4-10 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 10. This section applies if the parent of a student to whom section 8 or 9 of this chapter applies does not attend a meeting with the student and the student's counselor after receiving two (2) written requests to attend a meeting. If the student's parent does not attend a meeting described in section 8 or 9 of this chapter, the student and the student's counselor shall meet and:
        (1) the student's counselor shall make a recommendation to the student as to whether the student will achieve greater educational benefits by:
            (A) continuing in the Core 40 curriculum; or
            (B) completing the general curriculum; and
        (2) the student shall determine which curriculum the student will complete.
SOURCE: IC 20-32-4-11; (13)HB1337.2.47. -->     SECTION 47. IC 20-32-4-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 11. The state board may adopt rules for the consideration of waivers under sections 4 and 5 of this chapter. The rules must provide that waivers may be approved only on the basis of written evidence that each requirement of the section under which the waiver is being sought has been attained and demonstrated.
SOURCE: IC 20-32-5-15; (13)HB1337.2.48. -->     SECTION 48. IC 20-32-5-15, AS AMENDED BY P.L.229-2011,

SECTION 191, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 15. (a) The state superintendent board shall develop adopt rules establishing an ISTEP testing program testing schedule in which including:
        (1) annual testing for each student in grades 3 6, through 8; and 10 must be tested; and
        (2) each student in grade 10 or grade 11 must take a graduation examination. an assessment or set of assessments used to determine readiness for graduation.
    (b) The state board shall adopt rules to establish when a student is considered to be in grade 10 for purposes of initially taking the graduation examination.

SOURCE: ; (13)HB1337.2.49. -->     SECTION 49. [EFFECTIVE UPON PASSAGE] (a) As used in this SECTION, "commission" refers to the select commission on education established by subsection (b).
    (b) The select commission on education is established with the following members:
        (1) The members of the senate education and career development committee.
        (2) The members of the house of representatives education committee.
The chairpersons of the senate education and career development committee and the house of representatives education committee shall serve as co-chairpersons of the committee.
    (c) The committee shall study and evaluate the feasibility of establishing consequences for school corporations that are in the two (2) lowest categories or designations of school performance.
    (d) The committee shall submit the committee's final report to the legislative council not later than December 1, 2013.
    (e) The affirmative votes of a majority of the members of the committee are required for the committee to take action on any measure, including final reports.
    (f) This SECTION expires December 31, 2013.

SOURCE: ; (13)HB1337.2.50. -->     SECTION 50. An emergency is declared for this act.

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