*SB0567.2*

February 22, 2019

SENATE BILL No. 567_____

DIGEST OF SB 567 (Updated February 21, 2019 11:29 am - DI 125)

Citations Affected: IC 20-19; IC 20-24; IC 20-30.

Synopsis: Virtual education. Provides that the state board of education(state board) may adopt rules regarding virtual education programs ofschool corporations. Provides that a student who does not participatein a school corporation's virtual education program before July 1, 2019,must complete the school corporation's onboarding process andorientation before the student may participate in the schoolcorporation's virtual education program. Provides that, if the lesser ofat least: (1) 100 students of a school corporation; or (2) 25% of the totalnumber of students enrolled in the school corporation; receive at least50% of instruction through a school corporation's virtual educationprogram, the school corporation shall establish a dedicated virtualeducation school. Requires a school corporation that issued a charterbefore July 1, 2015, to register with the state board for charterauthority. Provides that a student who is not enrolled in a virtual charterschool before July 1, 2019, must complete the virtual charter school'sonboarding process and orientation before the student may enroll in thevirtual charter school. Provides that, if an organizer of a virtual charterschool operates more than one virtual charter school, the organizermust, during the onboarding process and orientation, identify and make

(Continued next page)

Effective: July 1, 2019.

Raatz, Kruse

January 14, 2019, read first time and referred to Committee on Education and CareerDevelopment.

February 14, 2019, amended, reported favorably — Do Pass; reassigned to Committee onAppropriations.

February 21, 2019, amended, reported favorably — Do Pass.

SB 567—LS 7401/DI 110

Digest Continued

a recommendation regarding which one of the virtual charter schoolsthat the organizer operates is best suited for the student and the studentshould attend. Provides that, if a student enrolls in a virtual charterschool, the organizer of the virtual charter school may not allow thestudent to transfer during the same school year to another virtualcharter school that is operated by the organizer. Establishes actions thatthe state board may implement if a charter school is placed in thelowest category or designation of school performance for fourconsecutive years. Requires an authorizer to assist a virtual charterschool that is authorized by the authorizer in implementing andcomplying with certain rules adopted by the state board. Repeals aprovision that provides that a charter school will be closed if the charterschool is placed in the lowest category or designation of accountabilityfor four consecutive years.

SB 567—LS 7401/DI 110SB 567—LS 7401/DI 110

February 22, 2019

First Regular Session of the 121st General Assembly (2019)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the IndianaConstitution) 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 constitutionalprovision adopted), the text of the new provision will appear in this style type. Also, theword NEW will appear in that style type in the introductory clause of each SECTION that addsa 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 conflictsbetween statutes enacted by the 2018 Regular and Special Session of the General Assembly.

SENATE BILL No. 567

A BILL FOR AN ACT to amend the Indiana Code concerningeducation.

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

1 SECTION 1. IC 20-19-8 IS ADDED TO THE INDIANA CODE AS2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY3 1, 2019]:4 Chapter 8. School Corporation Virtual Education Programs5 Sec. 1. As used in this chapter, "virtual education program"6 means a program provided by a school corporation in which more7 than fifty percent (50%) of instruction, other than instruction for8 recovery credit courses, to students participating in the program9 is provided in an interactive learning environment created through

10 technology in which the student is separated from a teacher by11 time or space, or both.12 Sec. 2. The state board may adopt rules under IC 4-22-2 to13 establish requirements regarding virtual education programs,14 including the following:15 (1) Minimum requirements for the mandatory onboarding

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1 process and orientation required under section 3 of this2 chapter.3 (2) Requirements relating to tracking and monitoring student4 participation and attendance.5 (3) Ongoing student engagement and counseling policy6 requirements.7 (4) Employee policy requirements, including professional8 development requirements.9 (5) Financial and data reporting requirements that are in

10 addition to any other financial and data reporting11 requirements for school corporations.12 (6) Maximum student to teacher ratios.13 Sec. 3. (a) A school corporation shall establish and implement an14 onboarding process and orientation for students participating in a15 virtual education program.16 (b) A student who does not participate in a school corporation's17 virtual education program before July 1, 2019, must complete the18 onboarding process and orientation established by the school19 corporation under subsection (a) before the student may20 participate in the school corporation's virtual education program.21 If a student does not participate in the school corporation's22 onboarding process and orientation established under subsection23 (a), the student may not participate in the school corporation's24 virtual education program.25 (c) Nothing in this section may be construed to prohibit a26 student from otherwise receiving instructional services from the27 school corporation in which the student has legal settlement.28 However, a student who does not meet the requirements of29 subsection (b) may not participate in the school corporation's30 virtual education program.31 Sec. 4. If the lesser of at least:32 (1) one hundred (100) students of a school corporation; or33 (2) twenty-five percent (25%) of the total number of students34 enrolled in the school corporation;35 receive at least fifty percent (50%) of instruction through a school36 corporation's virtual education program, the school corporation37 shall establish a dedicated virtual education school.38 SECTION 2. IC 20-24-1-10 IS ADDED TO THE INDIANA CODE39 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY40 1, 2019]: Sec. 10. "Virtual charter school" means any charter41 school, including a conversion charter school, in which more than42 fifty percent (50%) of instruction is provided in an interactive

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1 learning environment created through technology in which2 students are separated from their teacher by time or space, or3 both.4 SECTION 3. IC 20-24-2.2-1.2, AS ADDED BY P.L.221-2015,5 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE6 JULY 1, 2019]: Sec. 1.2. (a) This section applies to an authorizer7 described in IC 20-24-1-2.5(1), IC 20-24-1-2.5(2), and8 IC 20-24-1-2.5(5) if the does not apply to an authorizer described in9 IC 20-24-1-2.5(2) or IC 20-24-1-2.5(5) that has not previously issued

10 a charter for any charter school prior to July 1, 2015.11 (b) A governing body of a school corporation may register with the12 state board for charter authority within the attendance area of the13 school corporation. The state board shall post on the state board's14 Internet web site an application received from an authorizer to register15 with the state board under this section within ten (10) days after receipt16 of the application. The state board may not charge an authorizer a fee17 to register with the state board under this section.18 (c) A governing board of a nonprofit college or university described19 in IC 20-24-1-2.5(5) may apply to the state board for statewide,20 regional, or local chartering authority.21 (d) The state board shall publicize to all governing bodies the22 opportunity to register with the state board for chartering authority23 within their school corporation. Not later than May 1 of each year, the24 state board shall provide information about the opportunity, including25 a registration deadline, to all governing bodies. To register as an26 authorizer, each interested governing body must submit the following27 information in a format prescribed by the state board:28 (1) A written notification of intent to serve as a charter authorizer29 in accordance with this article.30 (2) An explanation of the governing body's strategic vision for31 chartering.32 (3) An explanation of the governing body's budget and personnel33 capacity and commitment to execute the duties of quality charter34 authorizing in accordance with this article.35 (4) An explanation of how the governing body will solicit charter36 school applicants in accordance with IC 20-24-3.37 (5) A description or outline of the performance framework the38 governing body will use to guide the establishment of a charter39 contract and for the oversight and evaluation of charter schools,40 consistent with this article.41 (6) A draft of the governing body's renewal, revocation, and42 nonrenewal processes, consistent with this article.

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1 (7) A statement of assurance that the governing body commits to2 serving as a charter authorizer in fulfillment of the expectations,3 spirit, and intent of this article, and that the governing body will4 fully adopt standards of quality charter school authorizing in5 accordance with section 1.5 of this chapter.6 (e) Within sixty (60) days of receipt of the information described in7 subsection (d), the state board shall register the governing body as a8 charter authorizer within the attendance area of the school corporation9 and shall provide the governing body a letter confirming the governing

10 body's registration as a charter authorizer. A governing body may not11 engage in any charter authorizing functions without a current12 registration as a charter authorizer with the state board.13 (f) The state board shall establish an annual application and14 approval process, including cycles and deadlines during the state fiscal15 year, for registering an entity described in IC 20-24-1-2.5(5) for16 authorizer authority. Not later than May 1 of each year, the state board17 shall make available information and guidelines for an applicant18 described in IC 20-24-1-2.5(5) concerning the opportunity to apply for19 chartering authority under this article. The application process must20 require each applicant to submit an application that clearly explains or21 presents the following elements:22 (1) A written notification of intent to serve as a charter authorizer23 in accordance with this article.24 (2) The applicant's strategic vision for chartering.25 (3) A plan to support the applicant's strategic vision described in26 subdivision (2), including an explanation and evidence of the27 applicant's budget and personnel capacity and commitment to28 execute the duties of quality charter authorizing in accordance29 with this article.30 (4) A draft or preliminary outline of the request for proposals that31 the applicant would, if approved by the state board under this32 section, issue to solicit charter school applicants under33 IC 20-24-3.34 (5) A draft of the performance framework that the applicant35 would, if approved by the state board under this section, use to36 guide the establishment of a charter contract and for ongoing37 oversight and evaluation of charter schools consistent with this38 article.39 (6) A draft of the applicant's renewal, revocation, and nonrenewal40 processes.41 (7) A statement of assurance that the applicant commits to serving42 as a charter authorizer in fulfillment of the expectations, spirit,

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1 and intent of this article, and that the applicant will fully adopt2 standards of quality charter school authorizing in accordance with3 section 1.5 of this chapter.4 (g) Not later than July 1 of each year, the state board shall grant or5 deny chartering authority to an applicant under subsection (f). The state6 board shall make its decision on the merits of each applicant's proposal7 and plans submitted under subsection (f).8 (h) Within thirty (30) days of the state board's decision under9 subsection (g), the state board shall execute a renewable authorizing

10 contract with an applicant that the state board has approved for11 chartering authority. The initial term of each authorizing contract is six12 (6) years. The authorizing contract must specify each approved13 applicant's agreement to serve as a charter authorizer in accordance14 with this article and shall specify additional performance terms based15 on the applicant's proposal and plan for chartering. An approved16 applicant may not commence charter authorizing without an17 authorizing contract in effect.18 (i) The state board shall maintain on the state board's Internet web19 site the names of each authorizer approved by the state board under this20 section.21 (j) If an authorizer described in IC 20-24-1-2.5(1) issued a22 charter before July 1, 2015, the authorizer must comply with this23 section before it may renew an existing charter or authorize a new24 charter for a charter school. If an authorizer described in this25 subsection:26 (1) issued a charter before July 1, 2015;27 (2) authorizes more than one (1) charter school; and28 (3) is denied charter authority by the state board when the29 authorizer applies to register for charter authority under this30 section;31 the authorizer may, subject to any other requirements or32 limitations under this article, complete the term of each current33 charter but may not subsequently renew the charter for any34 charter school or grant any new charters.35 SECTION 4. IC 20-24-2.2-2 IS REPEALED [EFFECTIVE JULY36 1, 2019]. Sec. 2. (a) The minimum standard for renewal and the37 standard to avoid closure imposed by authorizers on a charter school38 is a requirement that the charter school not remain in the lowest39 category or designation of school improvement, including any40 alternative accountability category or designation, in the third year after41 initial placement in the lowest category or designation established42 under IC 20-31-8-4.

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1 (b) An authorizer of a charter school that does not meet the2 minimum standard for charter school renewal described in subsection3 (a) may petition the state board at any time to request permission to4 renew the charter school's charter notwithstanding the fact that the5 charter school does not meet the minimum standard. If timely6 notification is made, the state board shall hold a hearing to consider the7 authorizer's request at the state board's next regularly scheduled board8 meeting.9 (c) In determining whether to grant a request under subsection (b),

10 the state board shall consider the following:11 (1) Enrollment of students with special challenges, such as drug12 or alcohol addiction, prior withdrawal from school, prior13 incarceration, or other special circumstances.14 (2) High mobility of the student population resulting from the15 specific purpose of the charter school.16 (3) Annual improvement in the performance of students enrolled17 in the charter school, as measured by IC 20-31-8-1, compared18 with the performance of students enrolled in the charter school in19 the immediately preceding school year.20 (d) After the hearing, the state board must implement one (1) or21 more of the following actions:22 (1) Grant the authorizer's request to renew the charter of the23 charter school. The state board may determine the length of the24 renewal and any conditions of the renewal placed upon either the25 charter school or the authorizer.26 (2) Order the closure of the charter school at the end of the27 current school year.28 (3) Order the reduction of any administrative fee collected under29 IC 20-24-7-4 that is applicable to the charter school identified in30 subsection (b). The reduction must become effective at the31 beginning of the month following the month of the authorizer's32 hearing before the state board.33 A charter school that is closed by the state board under this section may34 not be granted a charter by any authorizer.35 SECTION 5. IC 20-24-2.2-2.5 IS ADDED TO THE INDIANA36 CODE AS A NEW SECTION TO READ AS FOLLOWS37 [EFFECTIVE JULY 1, 2019]: Sec. 2.5. (a) If a charter school is38 placed in the lowest category or designation of school improvement39 under IC 20-31-8-4, including any alternative accountability40 category or designation, for the third year after initial placement41 in the lowest category or designation under IC 20-31-8-4, the state42 board shall:

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1 (1) hold a hearing; and2 (2) implement one (1) of the following actions:3 (A) Require the implementation of a charter school4 improvement plan.5 (B) Order the reduction of any administrative fee collected6 under IC 20-24-7-4 or IC 20-24-7-4.5 that is applicable to7 the charter school. The reduction must become effective at8 the beginning of the month following the month of the9 authorizer's hearing before the state board.

10 (C) Prohibit or limit the enrollment of new students in the11 charter school.12 (D) Cancel the charter between the authorizer and13 organizer.14 (E) Order the closure of the charter school at the end of the15 current school year.16 A charter school that is closed by the state board under this section17 may not be granted a charter by any authorizer.18 (b) In determining which action to implement under subsection19 (a)(2), the state board shall consider the following:20 (1) Enrollment of students with special challenges, such as21 drug or alcohol addiction, prior withdrawal from school,22 prior incarceration, or other special circumstances.23 (2) High mobility of the student population resulting from the24 specific purpose of the charter school.25 (3) Annual improvement in the performance of students26 enrolled in the charter school, as measured by IC 20-31-8-1,27 compared with the performance of students enrolled in the28 charter school in the immediately preceding school year.29 SECTION 6. IC 20-24-2.2-4, AS AMENDED BY P.L.250-2017,30 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE31 JULY 1, 2019]: Sec. 4. If any authorizer renews the charter of, fails to32 close, or grants a new charter to a charter school that the state board33 has ordered closed under section 2(d) 2.5 of this chapter, the34 authorizer's authority to authorize new charter schools may be35 suspended by the state board until such a time as the state board36 formally approves the authorizer to authorize new charter schools. A37 determination under this section to suspend an authorizer's authority to38 authorize new charter schools must identify the deficiencies that, if39 corrected, will result in the approval of the authorizer to authorize new40 charter schools.41 SECTION 7. IC 20-24-2.2-6, AS AMENDED BY P.L.250-2017,42 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

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1 JULY 1, 2019]: Sec. 6. (a) If deficiencies identified under section 4 of2 this chapter are not corrected within two (2) years after the date the3 state board suspends the authorizer's authority to authorize new charter4 schools in a final order under section 4 of this chapter, the state board,5 following an affirmative vote of two-thirds (2/3) of the members, may6 revoke the authorizer's authority to function as an authorizer. The state7 board shall take all necessary steps to decommission the authorizer,8 including overseeing the orderly winding up of authorization activities9 or responsibilities, and ensuring the transfer of any charter school

10 records or administrative fees due under IC 20-24-7-4 in the11 authorizer's custody.12 (b) Charter schools authorized by an authorizer that has been13 decommissioned under subsection (a) must apply to be approved by14 another authorizer within one hundred fifty (150) days after the date the15 state board revokes the authorizer's authority to function as an16 authorizer, regardless of whether the state board has begun the process17 of winding up authorization activities of the authorizer. A charter18 school that is not approved under this subsection must close at the end19 of the charter school's current school year containing the date in which20 the charter school's application under this subsection is disapproved.21 A charter school that is closed by the state board under section 2 2.5 of22 this chapter may not be approved by another authorizer under this23 subsection.24 SECTION 8. IC 20-24-4-1, AS AMENDED BY P.L.192-2018,25 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE26 JULY 1, 2019]: Sec. 1. (a) A charter must meet the following27 requirements:28 (1) Be a written instrument.29 (2) Be executed by an authorizer and an organizer.30 (3) Confer certain rights, franchises, privileges, and obligations31 on a charter school.32 (4) Confirm the status of a charter school as a public school.33 (5) Subject to subdivision (6)(E) and (17), be granted for:34 (A) not less than three (3) years or more than seven (7) years;35 and36 (B) a fixed number of years agreed to by the authorizer and the37 organizer.38 (6) Provide for the following:39 (A) A review by the authorizer of the charter school's40 performance, including the progress of the charter school in41 achieving the academic goals set forth in the charter, at least42 one (1) time in each five (5) year period while the charter is in

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1 effect.2 (B) Renewal, if the authorizer and the organizer agree to renew3 the charter.4 (C) The renewal application must include guidance from the5 authorizer, and the guidance must include the performance6 criteria that will guide the authorizer's renewal decisions.7 (D) The renewal application process must, at a minimum,8 provide an opportunity for the charter school to:9 (i) present additional evidence, beyond the data contained in

10 the performance report, supporting its case for charter11 renewal;12 (ii) describe improvements undertaken or planned for the13 charter school; and14 (iii) detail the charter school's plans for the next charter15 term.16 (E) Not later than the end of the calendar year in which the17 charter school seeks renewal of a charter, the governing board18 of a charter school seeking renewal shall submit a renewal19 application to the charter authorizer under the renewal20 application guidance issued by the authorizer. The authorizer21 shall make a final ruling on the renewal application not later22 than April 1 after the filing of the renewal application. A23 renewal granted under this clause is not subject to the three (3)24 year minimum described in subdivision (5). The April 125 deadline does not apply to any review or appeal of a final26 ruling. After the final ruling is issued, the charter school may27 obtain further review by the authorizer of the authorizer's final28 ruling in accordance with the terms of the charter school's29 charter and the protocols of the authorizer.30 (7) Specify the grounds for the authorizer to:31 (A) revoke the charter before the end of the term for which the32 charter is granted; or33 (B) not renew a charter.34 (8) Set forth the methods by which the charter school will be held35 accountable for achieving the educational mission and goals of36 the charter school, including the following:37 (A) Evidence of improvement in:38 (i) assessment measures, including the statewide assessment39 program measures;40 (ii) attendance rates;41 (iii) graduation rates (if appropriate);42 (iv) increased numbers of Indiana diplomas with a Core 40

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1 designation and other college and career ready indicators2 including advanced placement participation and passage,3 dual credit participation and passage, and International4 Baccalaureate participation and passage (if appropriate);5 (v) increased numbers of Indiana diplomas with Core 406 with academic honors and technical honors designations (if7 appropriate);8 (vi) student academic growth;9 (vii) financial performance and stability; and

10 (viii) governing board performance and stewardship,11 including compliance with applicable laws, rules and12 regulations, and charter terms.13 (B) Evidence of progress toward reaching the educational14 goals set by the organizer.15 (9) Describe the method to be used to monitor the charter16 school's:17 (A) compliance with applicable law; and18 (B) performance in meeting targeted educational performance.19 (10) Specify that the authorizer and the organizer may amend the20 charter during the term of the charter by mutual consent and21 describe the process for amending the charter.22 (11) Describe specific operating requirements, including all the23 matters set forth in the application for the charter.24 (12) Specify a date when the charter school will:25 (A) begin school operations; and26 (B) have students attending the charter school.27 (13) Specify that records of a charter school relating to the28 school's operation and charter are subject to inspection and29 copying to the same extent that records of a public school are30 subject to inspection and copying under IC 5-14-3.31 (14) Specify that records provided by the charter school to the32 department or authorizer that relate to compliance by the33 organizer with the terms of the charter or applicable state or34 federal laws are subject to inspection and copying in accordance35 with IC 5-14-3.36 (15) Specify that the charter school is subject to the requirements37 of IC 5-14-1.5.38 (16) This subdivision applies to a charter established or renewed39 for an adult high school after June 30, 2014. The charter must40 require:41 (A) that the school will offer flexible scheduling;42 (B) that students will not complete the majority of instruction

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1 of the school's curriculum online or through remote2 instruction;3 (C) that the school will offer dual credit or industry4 certification course work that aligns with career pathways as5 recommended by the Indiana career council established by6 IC 22-4.5-9-3; and7 (D) a plan:8 (i) to support successful program completion and to assist9 transition of graduates to the workforce or to a

10 postsecondary education upon receiving a diploma from the11 adult high school; and12 (ii) to review individual student accomplishments and13 success after a student receives a diploma from the adult14 high school.15 (17) This subdivision applies to a charter between an16 authorizer and an organizer of a charter school granted or17 renewed after June 30, 2019. The charter must require that a18 charter school:19 (A) comply with actions implemented by the state board20 under IC 20-24-2.2-2.5; and21 (B) if the state board implements closure of the charter22 school under IC 20-24-2.2-2.5, the charter is revoked at the23 time the charter school closes.24 (b) A charter school shall set annual performance targets in25 conjunction with the charter school's authorizer. The annual26 performance targets shall be designed to help each school meet27 applicable federal, state, and authorizer expectations.28 SECTION 9. IC 20-24-5-4.5 IS ADDED TO THE INDIANA CODE29 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY30 1, 2019]: Sec. 4.5. (a) A virtual charter school shall establish and31 implement an onboarding process and orientation for virtual32 charter school students.33 (b) A student who is not enrolled in a virtual charter school34 before July 1, 2019, must complete the onboarding process and35 orientation established by the virtual charter school under36 subsection (a) before the student may enroll in the virtual charter37 school. If a student does not participate in the virtual charter38 school's onboarding process and orientation established under39 subsection (a), the student may not enroll in the virtual charter40 school.41 (c) If an organizer of a virtual charter school operates more42 than one (1) virtual charter school, the organizer shall, during the

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1 onboarding process and orientation established under subsection2 (a), identify and make a recommendation regarding which one (1)3 of the virtual charter schools that the organizer operates is best4 suited for the student and the student should attend.5 (d) An authorizer shall review and monitor whether a virtual6 charter school that is authorized by the authorizer complies with7 the requirements under this section.8 SECTION 10. IC 20-24-5-4.7 IS ADDED TO THE INDIANA9 CODE AS A NEW SECTION TO READ AS FOLLOWS

10 [EFFECTIVE JULY 1, 2019]: Sec. 4.7. (a) This section applies to an11 organizer that operates more than one (1) virtual charter school.12 (b) If a student enrolls in a virtual charter school, the organizer13 of the virtual charter school may not allow the student to transfer14 during the same school year to another virtual charter school that15 is operated by the organizer.16 SECTION 11. IC 20-24-5-5, AS AMENDED BY P.L.215-2018(ss),17 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE18 JULY 1, 2019]: Sec. 5. (a) Except as provided in subsections (b), (c),19 (d), (e), and (f) and sections 4.5 and 4.7 of this chapter, a charter20 school must enroll any eligible student who submits a timely21 application for enrollment.22 (b) This subsection applies if the number of applications for a23 program, class, grade level, or building exceeds the capacity of the24 program, class, grade level, or building. If a charter school receives a25 greater number of applications than there are spaces for students, each26 timely applicant must be given an equal chance of admission. The27 organizer must determine which of the applicants will be admitted to28 the charter school or the program, class, grade level, or building by29 random drawing in a public meeting, with each timely applicant limited30 to one (1) entry in the drawing. However, the organizer of a charter31 school located in a county with a consolidated city shall determine32 which of the applicants will be admitted to the charter school or the33 program, class, grade level, or building by using a publicly verifiable34 random selection process.35 (c) A charter school may limit new admissions to the charter school36 to:37 (1) ensure that a student who attends the charter school during a38 school year may continue to attend the charter school in39 subsequent years;40 (2) ensure that a student who attends a charter school during a41 school year may continue to attend a different charter school held42 by the same organizer in subsequent years;

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1 (3) allow the siblings of a student who attends a charter school or2 a charter school held by the same organizer to attend the same3 charter school the student is attending;4 (4) allow preschool students who attend a Level 3 or Level 45 Paths to QUALITY program preschool to attend kindergarten at6 a charter school if the charter school and the preschool provider7 have entered into an agreement to share services or facilities; and8 (5) allow each student who qualifies for free or reduced price9 lunch under the national school lunch program to receive

10 preference for admission to a charter school if the preference is11 specifically provided for in the charter school's charter and is12 approved by the authorizer.13 (d) This subsection applies to an existing school that converts to a14 charter school under IC 20-24-11. During the school year in which the15 existing school converts to a charter school, the charter school may16 limit admission to:17 (1) those students who were enrolled in the charter school on the18 date of the conversion; and19 (2) siblings of students described in subdivision (1).20 (e) A charter school may give enrollment preference to children of21 the charter school's founders, governing body members, and charter22 school employees, as long as the enrollment preference under this23 subsection is not given to more than ten percent (10%) of the charter24 school's total population.25 (f) A charter school may not suspend or expel a charter school26 student or otherwise request a charter school student to transfer to27 another school on the basis of the following:28 (1) Disability.29 (2) Race.30 (3) Color.31 (4) Gender.32 (5) National origin.33 (6) Religion.34 (7) Ancestry.35 A charter school student may be expelled or suspended only in a36 manner consistent with discipline rules established under IC 20-24-5.5.37 SECTION 12. IC 20-24-7-13, AS AMENDED BY P.L.191-2018,38 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE39 JULY 1, 2019]: Sec. 13. (a) As used in this section, "virtual charter40 school" means any charter school, including a conversion charter41 school, in which more than fifty percent (50%) of instruction is42 provided in an interactive learning environment created through

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1 technology in which students are separated from their teacher by time2 or space, or both.3 (b) (a) A virtual charter school may apply for authorization with any4 statewide authorizer in accordance with the authorizer's guidelines.5 (c) (b) For each state fiscal year, a virtual charter school is entitled6 to receive funding in a month from the state in an amount equal to the7 sum of:8 (1) the product of:9 (A) the number of students included in the virtual charter

10 school's current ADM; multiplied by11 (B) the result of:12 (i) ninety percent (90%) of the school's foundation amount13 determined under IC 20-43-3-8; divided by14 (ii) twelve (12); plus15 (2) the total of any:16 (A) special education grants under IC 20-43-7;17 (B) career and technical education grants under IC 20-43-8;18 (C) honor grants under IC 20-43-10; and19 (D) complexity grants under IC 20-43-13;20 to which the virtual charter school is entitled for the month.21 For each state fiscal year, a virtual charter school is entitled to receive22 special education grants under IC 20-43-7 calculated in the same23 manner as special education grants are calculated for other school24 corporations.25 (d) (c) The state board shall adopt rules under IC 4-22-2 to govern26 the operation of virtual charter schools. The rules adopted under this27 subsection may include the following:28 (1) Minimum requirements for the mandatory onboarding29 process and orientation required under IC 20-24-5-4.5.30 (2) Requirements relating to tracking and monitoring student31 participation and attendance.32 (3) Ongoing student engagement and counseling policy33 requirements.34 (4) Employee policy requirements, including professional35 development requirements.36 (5) Financial and data reporting requirements that are in37 addition to any other financial and data reporting38 requirements for virtual charter schools.39 (6) Maximum student to teacher ratios.40 (e) (d) The department, with the approval of the state board, shall41 before December 1 of each year submit an annual report to the budget42 committee concerning the program under this section.

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1 (f) (e) Each school year, at least sixty percent (60%) of the students2 who are enrolled in virtual charter schools under this section for the3 first time must have been included in the state's fall count of ADM4 conducted in the previous school year.5 (g) (f) Each virtual charter school shall report annually to the6 department concerning the following, on a schedule determined by the7 department:8 (1) Classroom size.9 (2) The ratio of teachers per classroom.

10 (3) The number of student-teacher meetings conducted in person11 or by video conference.12 (4) Any other information determined by the department.13 The department shall provide this information annually to the state14 board of education and the legislative council in an electronic format15 under IC 5-14-6.16 (h) (g) A virtual charter school shall adopt a student engagement17 policy. A student who regularly fails to participate in courses may be18 withdrawn from enrollment under policies adopted by the virtual19 charter school. The policies adopted by the virtual charter school must20 ensure that:21 (1) adequate notice of the withdrawal is provided to the parent22 and the student; and23 (2) an opportunity is provided, before the withdrawal of the24 student by the virtual charter school, for the student or the parent25 to demonstrate that failure to participate in the course is due to an26 event that would be considered an excused absence under27 IC 20-33-2.28 (i) (h) A student who is withdrawn from enrollment for failure to29 participate in courses pursuant to the school's student engagement30 policy may not reenroll in that same virtual charter school for the31 school year in which the student is withdrawn.32 (j) (i) An authorizer shall review and monitor whether a virtual33 charter school that is authorized by the authorizer complies with the34 requirements described in subsection (h) or (i). subsections (g) and35 (h).36 (j) An authorizer shall assist a virtual charter school that is37 authorized by the authorizer in implementing and complying with38 the rules adopted by the state board under subsection (c).39 SECTION 13. IC 20-30-5-20, AS AMENDED BY P.L.228-2017,40 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE41 JULY 1, 2019]: Sec. 20. (a) As used in this section, "charter school"42 does not include a virtual charter school, as defined in IC 20-24-7-13.

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1 IC 20-24-1-10.2 (b) As used in this section, "psychomotor skills" means skills using3 hands on practice to support cognitive learning.4 (c) Except as provided in subsection (f), each school corporation,5 charter school, and accredited nonpublic school shall include in the6 charter school's, school corporation's, or accredited nonpublic school's7 high school health education curriculum instruction in8 cardiopulmonary resuscitation and use of an automated external9 defibrillator for its students. The instruction must incorporate the

10 psychomotor skills necessary to perform cardiopulmonary resuscitation11 and use an automated external defibrillator and must include either of12 the following:13 (1) An instructional program developed by the American Heart14 Association or the American Red Cross.15 (2) An instructional program that is nationally recognized and is16 based on the most current national evidence based emergency17 cardiovascular care guidelines for cardiopulmonary resuscitation18 and the use of an automated external defibrillator.19 (d) A school corporation, charter school, or an accredited nonpublic20 school may offer the instruction required in subsection (c) or may21 arrange for the instruction to be provided by available community22 based providers. The instruction is not required to be provided by a23 teacher. If instruction is provided by a teacher, the teacher is not24 required to be a certified trainer of cardiopulmonary resuscitation.25 (e) This section shall not be construed to require a student to26 become certified in cardiopulmonary resuscitation and the use of an27 automated external defibrillator. However, if a school corporation,28 charter school, or accredited nonpublic school chooses to offer a course29 that results in certification being earned, the course must be taught by30 an instructor authorized to provide the instruction by the American31 Heart Association, the American Red Cross, or a similar nationally32 recognized association.33 (f) A school administrator may waive the requirement that a student34 receive instruction under subsection (c) if the student has a disability35 or is physically unable to perform the psychomotor skill component of36 the instruction required under subsection (c).

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COMMITTEE REPORT

Madam President: The Senate Committee on Education and CareerDevelopment, to which was referred Senate Bill No. 567, has had thesame under consideration and begs leave to report the same back to theSenate with the recommendation that said bill be AMENDED asfollows:

Page 1, line 7, delete "instruction" and insert "instruction, otherthan instruction for recovery credit courses,".

Page 2, delete lines 15 through 18, begin a new paragraph andinsert:

"(b) A student who does not participate in a school corporation'svirtual education program before July 1, 2019, must complete theonboarding process and orientation established by the schoolcorporation under subsection (a) before the student mayparticipate in the school corporation's virtual education program.If a student does not participate in the school corporation'sonboarding process and orientation established under subsection(a), the student may not participate in the school corporation'svirtual education program.".

Page 2, delete lines 32 through 42.Page 3, delete lines 1 through 7.Page 7, between lines 21 and 22, begin a new line double block

indented and insert:"(C) Prohibit or limit the enrollment of new students in thecharter school.".

Page 7, line 22, delete "(C)" and insert "(D)".Page 7, line 24, delete "(D)" and insert "(E)".Page 7, delete lines 39 through 42.Page 8, delete lines 1 through 8.Page 9, line 13, delete "(18)," and insert "(17),".Page 11, delete lines 37 through 42.Page 12, delete lines 1 through 3.Page 12, line 4, delete "(18)" and insert "(17)".Page 12, line 21, delete "all".Page 12, delete lines 22 through 27, begin a new paragraph and

insert:"(b) A student who is not enrolled in a virtual charter school

before July 1, 2019, must complete the onboarding process andorientation established by the virtual charter school undersubsection (a) before the student may enroll in the virtual charterschool. If a student does not participate in the virtual charter

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school's onboarding process and orientation established undersubsection (a), the student may not enroll in the virtual charterschool.

(c) If an organizer of a virtual charter school operates morethan one (1) virtual charter school, the organizer shall, during theonboarding process and orientation established under subsection(a), identify and make a recommendation regarding which one (1)of the virtual charter schools that the organizer operates is bestsuited for the student and the student should attend.".

Page 12, delete lines 31 through 42, begin a new paragraph andinsert:

"SECTION 10. IC 20-24-5-4.7 IS ADDED TO THE INDIANACODE AS A NEW SECTION TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2019]: Sec. 4.7. (a) This section applies to anorganizer that operates more than one (1) virtual charter school.

(b) If a student enrolls in a virtual charter school, the organizerof the virtual charter school may not allow the student to transferduring the same school year to another virtual charter school thatis operated by the organizer.

SECTION 11. IC 20-24-5-5, AS AMENDED BY P.L.215-2018(ss),SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2019]: Sec. 5. (a) Except as provided in subsections (b), (c),(d), (e), and (f) and sections 4.5 and 4.7 of this chapter, a charterschool must enroll any eligible student who submits a timelyapplication for enrollment.

(b) This subsection applies if the number of applications for aprogram, class, grade level, or building exceeds the capacity of theprogram, class, grade level, or building. If a charter school receives agreater number of applications than there are spaces for students, eachtimely applicant must be given an equal chance of admission. Theorganizer must determine which of the applicants will be admitted tothe charter school or the program, class, grade level, or building byrandom drawing in a public meeting, with each timely applicant limitedto one (1) entry in the drawing. However, the organizer of a charterschool located in a county with a consolidated city shall determinewhich of the applicants will be admitted to the charter school or theprogram, class, grade level, or building by using a publicly verifiablerandom selection process.

(c) A charter school may limit new admissions to the charter schoolto:

(1) ensure that a student who attends the charter school during aschool year may continue to attend the charter school in

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subsequent years;(2) ensure that a student who attends a charter school during aschool year may continue to attend a different charter school heldby the same organizer in subsequent years;(3) allow the siblings of a student who attends a charter school ora charter school held by the same organizer to attend the samecharter school the student is attending;(4) allow preschool students who attend a Level 3 or Level 4Paths to QUALITY program preschool to attend kindergarten ata charter school if the charter school and the preschool providerhave entered into an agreement to share services or facilities; and(5) allow each student who qualifies for free or reduced pricelunch under the national school lunch program to receivepreference for admission to a charter school if the preference isspecifically provided for in the charter school's charter and isapproved by the authorizer.

(d) This subsection applies to an existing school that converts to acharter school under IC 20-24-11. During the school year in which theexisting school converts to a charter school, the charter school maylimit admission to:

(1) those students who were enrolled in the charter school on thedate of the conversion; and(2) siblings of students described in subdivision (1).

(e) A charter school may give enrollment preference to children ofthe charter school's founders, governing body members, and charterschool employees, as long as the enrollment preference under thissubsection is not given to more than ten percent (10%) of the charterschool's total population.

(f) A charter school may not suspend or expel a charter schoolstudent or otherwise request a charter school student to transfer toanother school on the basis of the following:

(1) Disability.(2) Race.(3) Color.(4) Gender.(5) National origin.(6) Religion.(7) Ancestry.

A charter school student may be expelled or suspended only in amanner consistent with discipline rules established underIC 20-24-5.5.".

Delete pages 13 through 14.

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Page 15, delete lines 1 through 34.Page 17, between lines 33 and 34, begin a new paragraph and insert:"(j) An authorizer shall assist a virtual charter school that is

authorized by the authorizer in implementing and complying withthe rules adopted by the state board under subsection (c).".

Page 18, delete lines 36 through 42, begin a new paragraph andinsert:

"SECTION 15. IC 20-43-1-33 IS ADDED TO THE INDIANACODE AS A NEW SECTION TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2019]: Sec. 33. "Virtual education program"has the meaning set forth in IC 20-19-8-1.

SECTION 16. IC 20-43-6-3, AS AMENDED BY P.L.217-2017,SECTION 127, IS AMENDED TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2019]: Sec. 3. (a) A school corporation's basictuition support for a state fiscal year is the amount determined underthe applicable provision of this section.

(b) The school corporation's basic tuition support for a state fiscalyear is equal to the result of STEP FIVE in the following formula:

STEP ONE: Determine the total number of students in theschool corporation's current ADM for the year whoparticipated in the school corporation's virtual educationprogram.STEP TWO: Determine the result of:

(A) foundation amount multiplied by the school corporation'scurrent ADM for the year; minus(B) the STEP ONE amount.

STEP THREE: Determine the result of:(A) the foundation amount; multiplied by(B) the STEP TWO amount.

STEP FOUR: Determine the result of:(A) the STEP ONE amount; multiplied by(B) ninety percent (90%) of the foundation amount.

STEP FIVE: Determine the result of:(A) the STEP THREE amount; plus(B) the STEP FOUR amount.

(c) This subsection applies to students of a virtual charter school. Avirtual charter school's basic tuition support for a state fiscal year for

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those students is the amount determined under IC 20-24-7-13.".Delete page 19.Renumber all SECTIONS consecutively.

and when so amended that said bill do pass and be reassigned to theSenate Committee on Appropriations.

(Reference is to SB 567 as introduced.)

RAATZ, Chairperson

Committee Vote: Yeas 9, Nays 0.

_____

COMMITTEE REPORT

Madam President: The Senate Committee on Appropriations, towhich was referred Senate Bill No. 567, has had the same underconsideration and begs leave to report the same back to the Senate withthe recommendation that said bill be AMENDED as follows:

Page 16, delete lines 37 through 42.Page 17, delete lines 1 through 29.

and when so amended that said bill do pass.

(Reference is to SB 567 as printed February 15, 2019.)

MISHLER, Chairperson

Committee Vote: Yeas 11, Nays 0.

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