SB 239

           Second Regular Session of the 124th General Assembly (2026)
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 2025 Regular Session of the General Assembly.
    SENATE ENROLLED ACT No. 239
    AN ACT to amend the Indiana Code concerning education.
    Be it enacted by the General Assembly of the State of Indiana:
    SECTION 1. IC 4-21.5-2-4, AS AMENDED BY P.L.132-2019,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. (a) This article does not apply to any of the
following agencies:
     (1) The governor.
     (2) The state board of accounts.
     (3) The state educational institutions.
     (4) The department of workforce development.
     (5) The unemployment insurance review board of the department
     of workforce development.
     (6) The worker's compensation board of Indiana.
     (7) The military officers or boards.
     (8) The Indiana utility regulatory commission.
     (9) The department of state revenue (excluding an agency action
     related to the licensure of private employment agencies).
     (10) The department of local government finance.
     (11) The Indiana board of tax review.
     (12) The Indiana department of veterans' affairs.
     (13) The Indiana veterans' affairs commission.
     (14) The state board of education when issuing a final
SEA 239 — CC 1
                                    2
      determination described in IC 20-26-7.1-4.
    (b) This article does not apply to action related to railroad rate and
tariff regulation by the Indiana department of transportation.
    SECTION 2. IC 6-1.1-17-3.1, AS AMENDED BY P.L.136-2024,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 3.1. (a) This section:
      (1) applies only to an operating referendum tax levy under
      IC 20-46-1 approved by the voters before January 1, 2023, that is
      imposed by a school corporation for taxes first due and payable in
      2024 and 2025;
      (2) does not apply to an operating referendum tax levy under
      IC 20-46-1:
          (A) approved by the voters during a time that the school
          corporation imposing the levy was designated as a distressed
          political subdivision; or
          (B) approved by the voters after December 31, 2022, and
          before January 1, 2025, that is imposed by a school
          corporation for taxes first due and payable in 2024 or 2025;
          and
      (3) does not apply to any other tax year.
    (b) As used in this section, "ADM" refers to the school corporation's
average daily membership used to determine the state tuition support
distribution under IC 20-43. In the case of a school corporation that has
entered into an agreement with one (1) or more charter schools to
participate as an innovation network charter school under IC 20-25.7-5,
the term includes the following:
      (1) For a participating innovation network charter school
      described in IC 20-25.7-5-2(a), the average daily membership
      of any innovation network charter school that is treated as a
      school operated by the school corporation when calculating the
      total amount of state tuition support to be distributed to the school
      corporation.
      (2) For a participating innovation network charter school
      described in IC 20-25.7-5-2.5(a), the average daily
      membership of students described in IC 20-25.7-5-2.5(c)(2) of
      any innovation network charter school that is treated as a
      school operated by the school corporation with regard to
      students described in IC 20-25.7-5-2.5(c)(2) when calculating
      the total amount of state tuition support to be distributed to
      the school corporation.
    (c) Notwithstanding any increase in the assessed value of property
from the previous assessment date, for taxes first due and payable in
SEA 239 — CC 1
                                   3
2024, the total amount of operating referendum tax that may be levied
by a school corporation may not exceed the lesser of:
      (1) the maximum operating referendum tax that could have been
      levied by the school corporation if the maximum referendum rate
      was imposed for taxes first due and payable in 2023 multiplied by
      one and three-hundredths (1.03); or
      (2) the maximum operating referendum tax that could otherwise
      be levied by the school corporation for taxes first due and payable
      in 2024.
The tax rate for an operating referendum tax levy shall be decreased,
if necessary, to comply with this limitation.
    (d) Notwithstanding any increase in the assessed value of property
from the previous assessment date, for taxes first due and payable in
2025, the total amount of operating referendum tax that may be levied
by a school corporation may not exceed the lesser of the following:
      (1) The maximum operating referendum tax that could have been
      levied by the school corporation if the maximum referendum rate
      was imposed for taxes first due and payable in the immediately
      preceding calendar year, as adjusted by this section, multiplied by
      the result determined under STEP SEVEN of the following
      formula:
         STEP ONE: Subtract:
            (i) the school corporation's spring count of ADM made in
            the calendar year preceding by five (5) years the calendar
            year in which the property taxes are first due and payable;
            from
            (ii) the school corporation's spring count of ADM made in
            the immediately preceding calendar year.
         STEP TWO: Divide the STEP ONE result by four (4).
         STEP THREE: Divide the STEP TWO result by the school
         corporation's spring count of ADM made in the calendar year
         preceding by five (5) years the calendar year in which the
         property taxes are first due and payable.
         STEP FOUR: Multiply the STEP THREE amount by one and
         five-tenths (1.5).
         STEP FIVE: Add the STEP FOUR result and one and
         six-hundredths (1.06).
         STEP SIX: Determine the greater of the STEP FIVE result or
         one and six-hundredths (1.06).
         STEP SEVEN: Determine the lesser of the STEP SIX result or
         one and twelve-hundredths (1.12).
      (2) The maximum operating referendum tax that could otherwise
SEA 239 — CC 1
                                   4
      be levied by the school corporation for taxes first due and payable
      in the current calendar year.
The tax rate for an operating referendum tax levy shall be decreased,
if necessary, to comply with this limitation.
    (e) The department of education shall provide to the department of
local government finance each school corporation's applicable ADM
counts as needed to make the determinations under this section.
    SECTION 3. IC 20-19-3-45.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 45.5. Not later than July 1, 2027,
and not later than each July 1 thereafter, the department shall:
      (1) compile a list of business and industry partners that
      provide guaranteed incentives to high school students who
      earn the honors employment plus seal; and
      (2) publish the list described in subdivision (1) on the
      department's website.
    SECTION 4. IC 20-24-11-5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 5. (a) An existing public elementary or secondary
school may be converted into a charter school if the governing
body of the school corporation:
      (1) votes to convert the school within the school corporation;
      and
      (2) submits to an authorizer a proposal described in
      IC 20-24-3-4 to convert the school within the school
      corporation to a charter school.
    (b) The governing body of the school corporation described in
subsection (a) may not serve as the authorizer of the charter school
converted in accordance with this section.
    (c) The organizer of a conversion charter school described in
this section may be:
      (1) the school corporation; or
      (2) a nonprofit corporation that:
          (A) is established by the school corporation;
          (B) is incorporated or registered in Indiana;
          (C) has been recognized by the Internal Revenue Service to
          be tax exempt and maintains such tax exempt status; and
          (D) has an independent board whose members have been
          elected or selected under the organizer's application and
          that has entered into a contract under this article to
          operate a charter school.
    (d) The governing body of a school corporation may convert
SEA 239 — CC 1
                                   5
more than one (1) existing public elementary or secondary school
within the school corporation under this section. The school
corporation or an organizer that is a nonprofit corporation
established by the school corporation under subsection (c)(2) may:
     (1) submit a separate proposal for each school to an
     authorizer; or
     (2) with the approval of the authorizer, operate two (2) or
     more schools under a single charter, provided that each
     school site:
         (A) is identified in the charter application and charter; and
         (B) is subject to the performance conditions, accountability
         measures, and renewal determinations established in the
         charter.
   (e) A conversion charter school described in this section shall
comply with the following:
     (1) All legal requirements described in section 1(d) of this
     chapter.
     (2) Except as provided in this section, all requirements for
     charter schools under this article.
   SECTION 5. IC 20-25.7-5-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 1.5. A board may not at the same
time both:
     (1) be an authorizer of a charter school; and
     (2) enter into or have an agreement under this chapter with
     the charter school.
   SECTION 6. IC 20-25.7-5-2, AS AMENDED BY P.L.213-2025,
SECTION 169, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 2. (a) This section applies to a
charter school in which the organizer of the charter school has
entered into a participating innovation network charter school
agreement for that charter school with only one (1) board.
   (a) (b) The board may enter into an agreement with an organizer to
reconstitute an eligible school as a participating innovation network
charter school or to establish a participating innovation network charter
school at a location selected by the board within the boundary of the
school corporation. Notwithstanding IC 20-26-7.1, a participating
innovation network charter school may be established within a vacant
school building.
   (b) (c) The terms of the agreement entered into between the board
and an organizer must specify the following:
     (1) A statement that the organizer authorizes the department to
SEA 239 — CC 1
                                    6
      include the charter school's performance assessment results under
      IC 20-31-8 when calculating the school corporation's performance
      assessment under rules adopted by the state board.
      (2) Subject to an administrative fee as described in subsection (g),
      (h), a statement that the school corporation will distribute at least
      one hundred percent (100%) of state tuition support dollars that
      the school corporation receives from student enrollment in the
      participating innovation network charter school in accordance
      with the school funding formula to the participating innovation
      network charter school (if the participating innovation network
      charter school is treated in the same manner as a school operated
      by the school corporation under subsection (d)(2)). (e)(2)).
      (3) The performance goals and accountability metrics agreed
      upon for the charter school in the charter agreement between the
      organizer and the authorizer and a statement that the school
      corporation is prohibited from setting additional performance
      goals or accountability metrics.
      (4) For an agreement entered into or renewed after June 30, 2023,
      the process the board is required to follow in determining whether
      to renew the agreement.
      (5) The amount of money levied as property taxes that will be
      distributed by the school corporation to the organizer.
      (6) Subject to section 5 of this chapter, the participating
      innovation network charter school's enrollment and discipline
      policies, including defined attendance areas and enrollment
      zones.
      (7) A statement that the innovation agreement shall not create an
      obligation that would cause the organizer to be in violation of its
      charter agreement (as described in IC 20-24-1-3).
    (c) (d) If an organizer and the board enter into an agreement under
subsection (a), (b), the organizer and the board shall notify the
department that the agreement has been made under this section within
thirty (30) days after the agreement is entered into.
    (d) (e) Upon receipt of the notification under subsection (c), (d), for
school years starting after the date of the agreement:
      (1) the department shall include the participating innovation
      network charter school's performance assessment results under
      IC 20-31-8 when calculating the school corporation's performance
      assessment under rules adopted by the state board; and
      (2) the department shall treat the participating innovation network
      charter school in the same manner as a school operated by the
      school corporation when calculating the total amount of state
SEA 239 — CC 1
                                    7
       funding to be distributed to the school corporation unless
       subsection (e) (f) applies. and
       (3) if requested by a participating innovation network charter
       school that reconstitutes an eligible school, the department may
       use student growth as the state board's exclusive means to
       determine the innovation network charter school's category or
       designation of school improvement under 511 IAC 6.2-10-10 for
       a period of three (3) years. Beginning with the 2019-2020 school
       year, the department may not use student growth as the state
       board's exclusive means to determine an innovation network
       charter school's category or designation of school improvement.
       This subdivision expires July 1, 2023.
    (e) (f) If a participating innovation network school was established
before January 1, 2016, and for the current school year has a
complexity index that is greater than the complexity index for the
school corporation that the innovation network school has contracted
with, the innovation network school shall be treated as a charter school
for purposes of determining tuition support. This subsection expires
June 30, 2027.
    (f) (g) If the board or organizer fails to follow the process described
in subsection (b)(4), (c)(4), the board or organizer may appeal to the
state board. The state board shall hear the appeal in a public meeting
and ensure that the board or organizer follows the renewal process
specified in the agreement. The board may not terminate an agreement
until the board has provided evidence to the state board that the board
has complied with the renewal process specified in the agreement. The
state board shall issue a decision on an appeal under this subsection not
later than sixty (60) days after the date the board or organizer submitted
the appeal to the state board.
    (g) (h) If an administrative fee is included in an agreement entered
into or renewed after June 30, 2023, under this section, the fee may not
exceed one percent (1%) of the total amount of state tuition support
that is distributed to the school corporation based on the participating
innovation network charter school's student enrollment.
    (h) (i) An agreement entered into between the board and an
organizer under this section may not be altered without written
approval from the organizer.
    SECTION 7. IC 20-25.7-5-2.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 2.5. (a) This section applies to a
charter school in which the organizer of the charter school has
entered into a participating innovation network charter school
SEA 239 — CC 1
                                  8
agreement for that charter school with more than one (1) board.
   (b) A board may enter into an agreement with an organizer to:
     (1) reconstitute an eligible school as a participating innovation
     network charter school; or
     (2) establish a participating innovation network charter
     school at a location:
         (A) selected by the board; or
         (B) within the geographic boundaries of any school
         corporation with which the organizer enters into an
         agreement under this section.
Notwithstanding IC 20-26-7.1, a participating innovation network
charter school may be established within a vacant school building.
   (c) The terms of the agreement entered into between a board of
a school corporation and an organizer must specify the following:
     (1) A statement that the organizer authorizes the department
     to include the charter school's performance assessment results
     under IC 20-31-8 for students who reside within the
     geographic boundaries of the school corporation when
     calculating the school corporation's performance assessment
     under rules adopted by the state board.
     (2) Subject to an administrative fee as described in subsection
     (h), a statement that the school corporation will distribute at
     least one hundred percent (100%) of state tuition support
     dollars that the school corporation receives for students who:
         (A) reside within the geographic boundaries of the school
         corporation; and
         (B) are enrolled in the participating innovation network
         charter school;
     in accordance with the school funding formula to the
     participating innovation network charter school (if the
     participating innovation network charter school is, with
     regard to students described in this subsection, treated in the
     same manner as a school operated by the school corporation
     under subsection (e)(2)).
     (3) The performance goals and accountability metrics agreed
     upon for the charter school in the charter agreement between
     the organizer and the authorizer and a statement that the
     school corporation is prohibited from setting additional
     performance goals or accountability metrics.
     (4) The process the board is required to follow in determining
     whether to renew the agreement.
     (5) The amount of money levied as property taxes that will be
SEA 239 — CC 1
                                  9
      distributed by the school corporation to the organizer.
      (6) Subject to section 5 of this chapter, the participating
      innovation network charter school's enrollment and discipline
      policies, including defined attendance areas and enrollment
      zones.
      (7) A statement that the innovation agreement shall not create
      an obligation that would cause the organizer to be in violation
      of its charter agreement (as described in IC 20-24-1-3).
    (d) If an organizer and a board enter into an agreement under
subsection (b), the organizer and the board shall notify the
department that the agreement has been made under this section
within thirty (30) days after the agreement is entered into.
    (e) Upon receipt of the notification under subsection (d), for
school years starting after the date of the agreement:
      (1) the department shall include the participating innovation
      network charter school's performance assessment results
      under IC 20-31-8 for students who reside within the
      geographic boundaries of the school corporation when
      calculating the school corporation's performance assessment
      under rules adopted by the state board; and
      (2) the department shall:
           (A) treat the participating innovation network charter
           school in the same manner as a school operated by the
           school corporation with regard to students residing within
           the geographic boundaries of the school corporation when
           calculating the total amount of state funding to be
           distributed to the school corporation unless subsection (f)
           applies; and
           (B) in determining the school corporation's enrollment,
           include only eligible pupils enrolled in the participating
           innovation network charter school who reside within the
           geographic boundaries of the school corporation.
    (f) If a participating innovation network school was established
before January 1, 2016, and for the current school year has a
complexity index that is greater than the complexity index for the
school corporation that the innovation network school has
contracted with, the innovation network school shall be treated as
a charter school for purposes of determining tuition support. This
subsection expires June 30, 2027.
    (g) If the board or organizer fails to follow the process described
in subsection (c)(4), the board or organizer may appeal to the state
board. The state board shall hear the appeal in a public meeting
SEA 239 — CC 1
                                 10
and ensure that the board or organizer follows the renewal process
specified in the agreement. The board may not terminate an
agreement until the board has provided evidence to the state board
that the board has complied with the renewal process specified in
the agreement. The state board shall issue a decision on an appeal
under this subsection not later than sixty (60) days after the date
the board or organizer submitted the appeal to the state board.
   (h) If an administrative fee is included in an agreement entered
into or renewed under this section after June 30, 2027, each school
corporation with which an organizer of a participating innovation
network charter school has entered into an agreement may assess
an administrative fee of not more than one percent (1%) of the
tuition support dollars that the school corporation receives for
students who:
      (1) reside within the geographic boundaries of the school
      corporation; and
      (2) are enrolled in the participating innovation network
      charter school.
   (i) An agreement entered into between the board and an
organizer under this section may not be altered without written
approval from the organizer.
   SECTION 8. IC 20-25.7-5-2.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 2.7. (a) This section applies to a
participating innovation network charter school described in
section 2.5(a) of this chapter.
   (b) In addition to any state tuition support dollars a
participating innovation network charter school receives from a
school corporation under this chapter, the department shall treat
the participating innovation network charter school as a charter
school when calculating the tuition support to be distributed to the
innovation network charter school for students of the innovation
network charter school who do not reside within the geographic
boundaries of a school corporation with which the innovation
network charter school has an agreement under this chapter.
   SECTION 9. IC 20-25.7-5-5, AS AMENDED BY P.L.220-2021,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 5. (a) IC 20-24-5-5 (with the exception of
IC 20-24-5-5(g)) does not apply to a participating innovation network
charter school that enters into an agreement with the board to
reconstitute or establish an eligible school.
   (b) Except as provided in subsections (c) and (d), a participating
SEA 239 — CC 1
                                   11
innovation network charter school must enroll any eligible student who
submits a timely application for enrollment.
   (c) A participating innovation network charter school that
reconstitutes or establishes an eligible school may limit new
admissions to the participating innovation network charter school to:
     (1) ensure that any student with legal settlement in the attendance
     area or, if the school does not have a defined attendance area,
     any student:
         (A) for a participating innovation network charter school
         described in section 2(a) of this chapter, in the school
         corporation; if the school does not have a defined attendance
         area; or
         (B) for a participating innovation network charter school
         described in section 2.5(a) of this chapter, in any school
         corporation with which the participating innovation
         network charter school has entered into an agreement
         under this chapter;
     may attend the charter school;
     (2) ensure that a student who attends the participating innovation
     network charter school during a school year may continue to
     attend the charter school in subsequent years;
     (3) allow the siblings of a student alumnus or a current student
     who attends the participating innovation network charter school
     to attend the charter school;
     (4) allow preschool students who attend a Level 3 or Level 4
     Paths to QUALITY program preschool to attend kindergarten at
     the participating innovation network charter school if the
     participating innovation network charter school and the school
     corporation or preschool provider have entered into an agreement
     to share services or facilities;
     (5) allow each student who qualifies for free or reduced price
     lunch under the national school lunch program to receive
     preference for admission to the participating innovation network
     charter school if the preference is specifically provided for in the
     charter and is approved by the authorizer; and
     (6) allow each student who attended a turnaround academy or
     attends a school that is located in the same school building as the
     participating innovation network charter school to receive
     preference for admission to the participating innovation network
     charter school if the preference is specifically provided for in the
     participating innovation network charter school's charter and is
     approved by the authorizer of the participating innovation
SEA 239 — CC 1
                                   12
       network charter school.
    (d) A participating innovation network charter school with a
curriculum that includes study in a foreign country may deny admission
to a student if:
       (1) the student:
          (A) has completed fewer than twenty-two (22) academic
          credits required for graduation; and
          (B) will be in the grade 11 cohort during the school year in
          which the student seeks to enroll in the participating
          innovation network charter school; or
       (2) the student has been suspended (as defined in IC 20-33-8-7)
       or expelled (as defined in IC 20-33-8-3) during the twelve (12)
       months immediately preceding the student's application for
       enrollment for:
          (A) ten (10) or more school days;
          (B) a violation under IC 20-33-8-16;
          (C) causing physical injury to a student, a school employee, or
          a visitor to the school; or
          (D) a violation of a school corporation's drug or alcohol rules.
For purposes of subdivision (2)(A), student discipline received under
IC 20-33-8-25(b)(7) for a violation described in subdivision (2)(B)
through (2)(D) must be included in the calculation of the number of
school days that a student has been suspended.
    (e) A participating innovation network charter school may give
enrollment preferences to children of the participating innovation
network charter school's founders, governing board members, and
participating innovation network charter school employees, as long as
the enrollment preference under this subsection is not given to more
than ten percent (10%) of the participating innovation charter school's
total population and there is sufficient capacity for a program, class,
grade level, or building to ensure that any student with legal settlement
in the attendance area may attend the school.
    (f) This subsection applies to an existing charter school that enters
into an innovation network agreement with the board. During the
charter school's first year of operation as a participating innovation
network charter school, the charter school may limit admission to:
       (1) those students who were enrolled in the charter school on the
       date it entered into the innovation network agreement; and
       (2) siblings of students described in subdivision (1).
    (g) This subsection applies if the number of applications for a
program, class, grade level, or building exceeds the capacity of the
program, class, grade level, or building. If a participating innovation
SEA 239 — CC 1
                                   13
network charter school receives a greater number of applications than
there are spaces for students, each timely applicant must be given an
equal chance of admission. The participating innovation network
charter school that is not in a county containing a consolidated city
must determine which of the applicants will be admitted to the
participating innovation network charter school or the program, class,
grade level, or building by random drawing in a public meeting with
each timely applicant limited to one (1) entry in the drawing. However,
the participating innovation network charter school located in a county
with a consolidated city shall determine which of the applicants will be
admitted to the participating innovation network charter school or the
program, class, grade level, or building by using a publicly verifiable
random selection process.
    SECTION 10. IC 20-25.7-5-6, AS ADDED BY P.L.162-2024,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 6. (a) Subject to an administrative fee as described
in section 2(g) 2(h) of this chapter, a school corporation that enters into
an agreement with an organizer under section 2 of this chapter shall
distribute at least one hundred percent (100%) of state tuition support
dollars that the school corporation receives from student enrollment in
the participating innovation network charter school in accordance with
the school funding formula to the participating innovation network
charter school.
    (b) Subject to an administrative fee as described in section
2.5(h) of this chapter, a school corporation that enters into an
agreement with an organizer under section 2.5 of this chapter shall
distribute at least one hundred percent (100%) of state tuition
support dollars that the school corporation receives from students
who:
      (1) reside in the geographic boundaries of the school
      corporation; and
      (2) are enrolled in the participating innovation network
      charter school;
in accordance with the school funding formula to the participating
innovation network charter school.
    (b) (c) Unless an agreement entered into before July 1, 2024,
between a board and an organizer provides otherwise, all participating
innovation network charter schools operating under existing
agreements with boards as of July 1, 2024, will receive funds as
required under subsection (a).
    SECTION 11. IC 20-26-7-47, AS AMENDED BY HEA 1423-2026,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
SEA 239 — CC 1
                                   14
UPON PASSAGE]: Sec. 47. (a) The following definitions apply
throughout this section:
      (1) "Covered school building" has the meaning set forth in
      IC 20-26-7.1-2.1.
      (2) "Current school year" refers to a year in which the governing
      body is required to conduct a review of school building usage
      under subsection (c).
      (3) "Enrollment" refers to the following:
         (A) Except as provided in clause (B), students counted in
         ADM (as defined in IC 20-43-1-6) in the first count date for a
         school year fixed under IC 20-43-4-3.
         (B) With regard to a school corporation, students counted in a
         school corporation's fall count of ADM minus all students
         counted in the fall count of ADM who are enrolled in eligible
         schools that:
            (i) have entered into an agreement with the school
            corporation to participate as a participating innovation
            network charter school under IC 20-25.7-5; and
            (ii) are included in the school corporation's fall ADM count.
      (4) "Interested person" has the meaning set forth in
      IC 20-26-7.1-2.2.
   (b) This section:
      (1) applies to a school corporation only if:
         (A) the total student enrollment for in-person instruction in the
         school corporation in the current school year is at least ten
         percent (10%) less than the student enrollment for in-person
         instruction in the school corporation in a school year that
         precedes the current school year by five (5); and
         (B) the school corporation in the current school year has more
         than one (1) school building serving the same grade level as
         the school building subject to closure under this section; and
      (2) does not apply to a school city (as defined in IC 20-25-2-12).
   (c) Each school year, the governing body of a school corporation
shall review the usage of school buildings used by the school
corporation to determine whether any school building should be closed
for the ensuing school year and subsequent school years.
   (d) A school corporation shall close a school building for the
ensuing school year (and subsequent school years) if:
      (1) at any time the school building had been used for classroom
      instruction;
      (2) in the current school year and the two (2) school years
      immediately preceding the current school year the school building
SEA 239 — CC 1
                                   15
      was underutilized for classroom instruction purposes or other
      allowable uses specified by this section;
      (3) as of the end of the school year before the school building is
      required to be closed under this section, the school corporation
      was not subject to a transitional plan adopted by the governing
      body and approved by the department to use the school building
      for an allowable use not later than the next school year after the
      school building is otherwise required to be closed under this
      section;
      (4) in the case of a school building that was used in any part in the
      current school year for instructional purposes, the school
      corporation has another school building or other school
      buildings:
          (A) with sufficient capacity to take the students using the
          school building being considered for closure; and
          (B) that does not require more than twenty (20) minutes of
          travel time by car or bus from the school building being
          considered for closure; and
      (5) the school building is not a school building described in
      IC 20-26-7.1-1, IC 20-26-7.1-3(b), IC 20-26-7.1-3(c), or
      IC 20-26-7.1-3(d).
    (e) For purposes of this section, a school building is underutilized
in a school year if the school building is not used for any of the
following allowable uses:
      (1) The number of full-time equivalent students enrolled for
      in-person instruction in the school building on instructional days
      (as determined under IC 20-30-2) for instructional purposes,
      averaged over the current school year and the two (2) school years
      immediately preceding the current school year, is at least fifty
      percent (50%) of:
          (A) the known classroom design capacity of the school
          building; or
          (B) if the design capacity is not known, the average maximum
          full-time equivalent enrollment in any of the last twenty-five
          (25) years, as validated by records created or maintained by
          the department.
      (2) The school corporation demonstrates through facts included
      in a resolution that the school building is being used and that it is
      financially prudent to continue to use the school building,
      considering all community resources, for a distinct student
      population that reasonably cannot be served through integration
      with the general school population, such as students attending an
SEA 239 — CC 1
                                 16
   alternative education program (as defined in IC 20-30-8-1).
   However, to be an allowable use under this subdivision, the
   average number of full-time equivalent students using the school
   building in a school year for instructional purposes must be at
   least thirty percent (30%) of:
       (A) the known classroom design capacity of the school
       building; or
       (B) if the design capacity is not known, the average maximum
       full-time equivalent enrollment in any of the last twenty-five
       (25) years, as validated by records created or maintained by
       the department; and
   (if multiple school buildings are used for the same purposes)
   combining the student populations into fewer school buildings is
   not reasonably feasible.
   (3) The school corporation demonstrates through facts included
   in a resolution that the school building is being used and that it is
   financially prudent to continue to use the school building,
   considering all community resources, for administrative or other
   school offices. However, to be an allowable use under this
   subdivision, at least fifty percent (50%) of the square footage of
   the school building must be used for offices, the personnel
   headquartered in the school building must consistently use the
   space for office purposes, and the occupancy cost of using the
   school building cannot be more than comparable office space that
   is available in the school district.
   (4) The school corporation demonstrates through facts included
   in a resolution that the school building is being used and that it is
   financially prudent to continue to use the school building,
   considering all community resources, for storage. However, to be
   an allowable use under this subdivision, at least fifty percent
   (50%) of the square footage of the school building must be used
   for storage, on average the storage space must be used to capacity,
   and the cost of using the school building for storage must be less
   than comparable storage space that is available in the school
   district.
   (5) The school corporation demonstrates through facts included
   in a resolution that the school building is being used and that it is
   financially prudent to continue to use the school building,
   considering all community resources, for a combination of office
   space and storage. However, to be an allowable use under this
   subdivision, at least fifty percent (50%) of the square footage of
   the school building must be used for a combination of office
SEA 239 — CC 1
                                   17
       space and storage and:
          (A) the personnel headquartered in the school building must
          consistently use the office space for office purposes, and the
          occupancy cost of using the office space, calculated using the
          costs of operating the school building, cannot be more than
          comparable office space that is available in the school district;
          and
          (B) on average, the storage space must be used to capacity and
          the cost of using the school building for storage must be less
          than comparable storage space that is available in the school
          district.
    (f) Closure of a school building that is:
       (1) owned by the school corporation or any other entity that is
       related in any way to, or created by, the school corporation or the
       governing body; or
       (2) jointly owned in the same manner by two (2) or more school
       corporations;
shall be carried out in conformity with IC 20-26-7.1.
    (g) Before filing a petition under subsection (h), a charter school or
state educational institution that is interested in a school corporation's
school building must give written notice to the school corporation to
determine whether an agreement can be reached regarding the school
corporation making the school building available for lease or purchase
under IC 20-26-7.1.
    (h) If an agreement is not reached within forty-five (45) days after
the date that the school corporation receives the notice under
subsection (g), the charter school or state educational institution may
petition the department to initiate or the department on its own may
initiate a proceeding for a determination as to whether a school
building meets the criteria for closure under this section or a covered
school building that is no longer used for classroom instruction by a
school corporation should be made available under IC 20-26-7.1. If a
charter school or state educational institution petitions the department
under this subsection, the charter school or state educational institution
must provide a copy of the petition to the applicable school
corporation.
    (i) An interested person that is not otherwise a party to the
proceeding may intervene in the proceeding under subsection (h) as a
party. The school corporation has the burden of going forward with the
evidence and the burden of proof to demonstrate that the school
building does not meet the criteria for closure or the covered school
building is not required to be made available under IC 20-26-7.1.
SEA 239 — CC 1
                                   18
   (j) Not more than sixty (60) thirty (30) days after receiving notice
of a petition under subsection (h), the school corporation must:
      (1) file a response to the petition that notifies the department that
      the school corporation:
          (A) is not contesting the petition; or
          (B) is contesting the petition and states the facts upon which
          the school corporation relies in contesting the petition; and
      (2) provide a copy of the response to the petitioner and any
      intervening party.
   (k) If the school corporation:
      (1) files a response that the school corporation is not contesting
      the petition; or
      (2) fails to submit a timely response under subsection (j);
the department shall issue an order granting the petition. A petition and
any response or reply are public documents.
   (l) If a school corporation contests a petition under subsection (j),
a party to the proceeding has not more than sixty (60) thirty (30) days
after the date that the school corporation files a response under
subsection (j) to submit a reply to the school corporation's response.
The petition shall be resolved in accordance with IC 20-26-7.1-4(g)
through IC 20-26-7.1-4(v).
   (m) The department shall make a determination regarding a petition
under subsection (h) not more than one hundred twenty (120) days after
the date that the:
      (1) petitioner and any intervening party have submitted a reply
      under subsection (l); or
      (2) time period to reply under subsection (l) has expired.
   (n) A school corporation or another party to the proceeding may file
with the state board a petition requesting review of the department's
determination. Upon receipt of a petition under this subsection, the
state board shall review the department's determination. An appeal to
the state board shall be subject to the procedure described in
IC 20-26-11-15(b).
   (o) Upon the issuance of a final unappealable order granting a
petition, the school corporation shall make the school building
available for lease or purchase in accordance with IC 20-26-7.1.
   SECTION 12. IC 20-26-7-48, AS AMENDED BY HEA 1423-2026,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 48. (a) The following definitions apply
throughout this section:
      (1) "Current school year" refers to a year in which the governing
      body is required to conduct a review of school building usage
SEA 239 — CC 1
                                   19
     under section 47(c) of this chapter.
     (2) "Enrollment" has the meaning set forth in section 47(a)(3) of
     this chapter.
   (b) This section:
     (1) applies to a school corporation only if:
         (A) the total student enrollment for in-person instruction in the
         school corporation in the current school year is at least ten
         percent (10%) less than the student enrollment for in-person
         instruction in the school corporation in a school year that
         precedes the current school year by five (5); and
         (B) the school corporation in the current school year has more
         than one (1) school building serving the same grade level as a
         school building subject to closure under section 47 of this
         chapter; and
     (2) does not apply to a school city (as defined in IC 20-25-2-12).
   (c) Beginning July 1, 2027, each school corporation shall annually
report to the department, in the form and on the schedule specified by
the department, the following information:
     (1) A listing of all buildings owned or leased by the school
     corporation that were originally designed as a school building.
     (2) The following information for each building listed in
     subdivision (1):
         (A) Designed occupancy, regardless of current use.
         (B) Current use (and percentage of use) for classroom
         instruction, as special use classrooms, as office space, or as
         storage or alternatively the building's status as transitioning
         from one (1) use or combination of uses to another.
         (C) The following information:
            (i) Current average full-time equivalent student enrollment
            for in-person instruction in the school building on
            instructional days (as determined under IC 20-30-2) in a
            school year.
            (ii) Percentage of instructional use.
            (iii) Percentage of use for other purposes.
         (D) Self-evaluation of whether the building qualifies for
         closure under section 47 of this chapter or the school board
         otherwise intends to close the building and the date closure
         will occur (if applicable).
   SECTION 13. IC 20-26-7.1-4, AS AMENDED BY P.L.1-2025,
SECTION 188, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Not later than thirty (30)
days after the date a governing body of a school corporation determines
SEA 239 — CC 1
                                   20
at a public meeting to cease using a covered school building for
classroom instruction on student instructional days (as described in
IC 20-30-2-2) for a school year as required under IC 20-30-2-3, a
school corporation shall provide written notice to the department
regarding the date that the covered school building has ceased or will
cease being used for classroom instruction as described in this
subsection.
   (b) If the school corporation does not intend to make a covered
school building available for lease or purchase in accordance with this
chapter, the school corporation shall state in the notice required under
subsection (a) the factual and legal basis for the school corporation's
contention that the covered school building is not required to be made
available under this chapter. The school corporation has the burden
of going forward with the evidence and the burden of proof to
demonstrate that the covered school building is not required to be
made available under this chapter. Any claim for exclusion from a
requirement to make the covered school building available under this
chapter which is not stated in the notice under this subsection is
waived.
   (c) If a school corporation does not provide notice to the department
under subsection (a), any claim for exclusion from a requirement to
make the covered school building available under this chapter is
waived.
   (d) Not later than fifteen (15) days after the date that the department
receives a notice from a school corporation under subsection (a), the
department shall provide written notice to all interested persons
regarding the notice from the school corporation submitted under
subsection (a).
   (e) If a notice from a school corporation under subsection (a)
acknowledges that the covered school building will be made available
in accordance with this chapter, the department's notice to interested
persons shall provide that any notice of interest by an interested person
for the covered school building must be submitted to the department
not later than sixty (60) days after the date the interested person
receives the department's notice under subsection (d).
   (f) If a notice from a school corporation under subsection (a)
includes a claim that the covered school building will not be made
available under this chapter, an interested person may submit to the
department, not later than thirty (30) days after the date the interested
person receives the notice from the department under subsection (d),
a rebuttal to the factual and legal basis for the school corporation's
contention that the covered school building is not required to be made
SEA 239 — CC 1
                                   21
available under this chapter.
    (g) The department shall, not later than sixty (60) days after the date
that a response is filed under IC 20-26-7-47(l) or a rebuttal is due
submitted under subsection (f), issue a determination to the school
corporation and interested persons parties to the proceeding as to
whether the covered school building must be made available under this
chapter. The department shall publish a copy of the department's
determination on the department's website.
    (h) Not later than thirty (30) sixty (60) days after the date that the
department issues a determination under subsection (g), a school
corporation or interested person party to the proceeding may appeal
the determination to file with the state board a petition requesting
review of the department's determination. An appeal to the state
board shall be subject to the procedure described in IC 20-26-11-15(b).
    (i) Not later than fifteen (15) days after:
       (1) the time expires for an appeal to the state board of a
       department determination under subsection (g) or IC 20-26-7-47
       that a covered school building be made available; or
       (2) a determination by the state board that a covered school
       building is to be made available is issued;
the governing body shall take the actions specified by subsection (j). If
the governing body fails to take the actions, the department shall
request that the attorney general enforce the order under section 9(a)
of this chapter.
    (i) The state board shall issue a final determination on an appeal
filed under subsection (h) not later than forty-five (45) days after
the date on which an appeal is filed.
    (j) If a petition requesting review under subsection (h) has not
been concluded by a final determination by the state board under
subsection (i) within two (2) years after the initial notice of interest
in acquiring the covered school building was submitted by a party
to the proceeding, a party to the proceeding may request that the
department determine whether a school building:
       (1) is not required to be made available for lease or purchase
       to a party to the proceeding under this chapter; or
       (2) is required to be conveyed to a party to the proceeding in
       accordance with this chapter.
The department shall make a determination on a request submitted
under this subsection not later than thirty (30) days after the date
the department receives the request. After the department issues
an order under this subsection, the pending petition requesting
review shall be deemed resolved by final order and there shall be
SEA 239 — CC 1
                                   22
no administrative or judicial review of the order.
    (k) If a party to the proceeding chooses to appeal a final
determination issued by the state board under subsection (i), the
appeal may only be filed in the court of appeals and must be filed
not later than thirty (30) days after the date the final determination
is issued by the state board. A school corporation that files an
appeal of the state board's final determination and is determined
to be the nonprevailing party by the court of appeals shall be
responsible for the reasonable attorney's fees incurred by the
prevailing party.
    (j) If (l) Not later than fifteen (15) days after the department
provides notice to interested parties under subsection (d) that a
covered school building is to be made available, closed, the governing
body shall do the following:
       (1) Make the covered school building available for inspection by
       a charter school or state educational institution that notifies the
       department that it is interested in leasing or purchasing the
       covered school building.
       (2) Make the following information available to a charter school
       or state educational institution described in subdivision (1):
           (A) Estimates of the operating expenses for the covered school
           building for the past three (3) years.
           (B) Written information regarding the condition of the covered
           school building, including the age of the roof and the HVAC
           system, and any known conditions which, in the governing
           body's opinion, require prompt repair or replacement.
           (C) A legal description of the property.
    (k) (m) If the governing body fails to take the actions required under
subsection (j), (l), a charter school having notified the school
corporation of its interest in the covered school building is entitled to
an injunction requiring the governing body to take the actions under
subsection (j). (l).
    (l) (n) The school corporation shall lease the covered school
building to a charter school or state educational institution for one
dollar ($1) per year for as long as the state educational institution uses
the covered school building for an academic purpose or the charter
school uses the covered school building for classroom instruction, for
a term at the state educational institution's or charter school's
discretion, or sell the covered school building for one dollar ($1), if the
charter school or state educational institution does the following:
       (1) Within ninety (90) days of receiving the department's notice
       under subsection (d), a charter school or state educational
SEA 239 — CC 1
                                    23
      institution must submit a preliminary request to purchase or lease
      the covered school building.
      (2) Subject to subsection (m), (o), within ninety (90) days of
      receiving the department's notice under subsection (d), a charter
      school or state educational institution must submit to the school
      corporation the following information:
          (A) The name of the charter school or state educational
          institution that is interested in leasing or purchasing the
          covered school building.
          (B) A time frame, which may not exceed three (3) years from
          the date that the covered school building is to be closed, no
          longer used, or no longer occupied, in which the:
            (i) charter school intends to begin providing classroom
            instruction in the covered school building; or
            (ii) state educational institution intends to begin using the
            covered school building for an academic purpose.
          (C) A resolution, adopted by the board of the charter school or
          state educational institution stating that the board of the
          charter school or state educational institution has determined
          that, after the charter school or state educational institution has
          made any necessary repairs or modifications, the covered
          school building will be sufficient to meet the charter school's
          or state educational institution's needs and can be operated
          within the charter school's or state educational institution's
          budget.
    (m) (o) If the department does not receive any preliminary requests
to purchase or lease a covered school building within the time frame
described in subsection (l)(1), (n)(1), the department shall send
notification to the school corporation that the department has not
received any preliminary requests to purchase or lease the covered
school building. Upon receipt of the notification under this subsection,
the school corporation may sell or lease the covered school building
to the county or municipal government in which the school
corporation is located for a mutually agreed upon price. If the
county or municipal government does not purchase or lease the
covered school building, the school corporation may sell or
otherwise dispose of the covered school building in accordance with
IC 36-1-11, IC 20-25-4-14, and IC 20-26-5-4(a)(7).
    (n) (p) If only one (1) charter school submits a preliminary request
to purchase or lease the covered school building, the department shall
notify the school corporation of the identity of the charter school and
direct the school corporation to complete a sale or lease to the charter
SEA 239 — CC 1
                                   24
school in accordance with subsection (r). (t). In the event that two (2)
or more charter schools submit a preliminary request to purchase or
lease a covered school building within the time frame described in
subsection (l)(1), (n)(1), the department shall send notification to each
interested person and the school corporation that the department has
received two (2) or more preliminary requests under this section. An
authorizer committee shall be established, with each statewide
authorizer that has authorized one (1) or more charter schools
appointing a representative, and the committee shall establish the
chairperson and procedures for the committee. Within sixty (60) days
of receiving notice under this subsection, the committee shall select
which charter school may proceed under subsection (r) (t) to purchase
or lease the covered school building or determine if two (2) or more
charter schools should co-locate within the covered school building.
The committee shall base the committee's decision on the following
criteria:
      (1) Preference shall be given to existing charter schools that have
      a proven track record of student academic performance.
      (2) If two (2) or more charter schools of proven academic
      performance are competing and only one (1) charter school is
      operating in the county in which the covered school building is
      located, the charter school in the same county as the covered
      school building shall be given preference.
In the event that the committee determines that two (2) or more charter
schools should co-locate in the covered school building, the charter
schools have sixty (60) days to submit a memorandum of
understanding stating that the charter schools shall be jointly and
severally liable for the obligations related to the sale or lease of the
covered school building, and specifying how the charter schools will
utilize the covered school building and share responsibility for
operational, maintenance, and renovation expenses. If the charter
schools are unable to agree, the charter schools shall be deemed to have
revoked their prior request regarding the lease or sale of the covered
school building. The committee shall give notice of the committee's
decision to the school corporation and each interested person. A charter
school that is not selected by the committee may appeal the decision to
the state board not more than thirty (30) days after receipt of the
committee's decision. The state board shall issue a final order in the
appeal not more than sixty (60) days after receipt of a properly filed
appeal. Notice of the appeal and the final order in the appeal must be
given to the school corporation.
    (o) (q) If a charter school does not submit a preliminary request to
SEA 239 — CC 1
                                   25
purchase or lease the covered school building and only one (1) state
educational institution submits a preliminary request to purchase or
lease the covered school building, the department shall:
      (1) notify the school corporation of the identity of the state
      educational institution; and
      (2) direct the school corporation to complete a sale or lease to the
      state educational institution in accordance with subsection (r). (t).
    (p) (r) If one (1) or more state educational institutions submit
preliminary requests to purchase or lease a covered school building, a
selection committee shall be established consisting of one (1) member
appointed by the executive of the largest city or town in the county in
which the covered school building is located, one (1) member
appointed by the city or town council of the largest city or town in the
county in which the covered school building is located, one (1) member
appointed by the county commissioners of the county in which the
covered school building is located, one (1) member appointed by the
county council of the county in which the covered school building is
located, and one (1) member appointed by the chamber of commerce
of the county in which the covered school building is located.
    (q) (s) Not later than sixty (60) days after the date that a member is
appointed under subsection (p), (r), the committee shall:
      (1) select which state educational institution may proceed to
      purchase or lease the covered school building; or
      (2) determine whether more than one (1) state educational
      institution should co-locate within the covered school building.
In making the committee's determination, the committee shall give
preference to a state educational institution whose proposed use of the
covered school building is assessed as having the greatest educational
benefit for prekindergarten through grade 12 education. A committee
determination under this subsection may not be appealed.
    (r) (t) A school corporation shall lease the covered school building
for one dollar ($1) per year to the charter school or state educational
institution for as long as the:
      (1) charter school uses the covered school building for classroom
      instruction for any combination of kindergarten through grade 12;
      or
      (2) state educational institution uses the covered school building
      for an academic purpose.
The term of the lease shall be established at the charter school's or state
educational institution's discretion and include an option for the state
educational institution or charter school to purchase the covered school
building for one dollar ($1). Alternatively, the school corporation shall
SEA 239 — CC 1
                                   26
sell the covered school building to the charter school or state
educational institution for one dollar ($1), if the charter school or state
educational institution has met the requirements set forth in subsection
(l) (n) and uses the covered school building in the manner prescribed
by this subsection. If the charter school or state educational institution
selected to lease or purchase the covered school building has met the
requirements under subsection (l), (n), the school corporation has not
more than ninety (90) thirty (30) days after the date notice of a final
unappealable decision is received by the school corporation to
complete the lease or sale of the covered school building to the charter
school or state educational institution. If the transaction is not
completed within ninety (90) thirty (30) days, the department or the
selected charter school or state educational institution may, under
section 9 of this chapter, request that the attorney general enforce the
sale or lease or may file suit to enforce the sale or lease. If a charter
school or state educational institution has not met the requirements
under subsection (l), (n), the school corporation may sell or otherwise
dispose of the covered school building in accordance with IC 36-1-11,
IC 20-25-4-14, and IC 20-26-5-4(a)(7).
    (u) In addition to a request that the attorney general enforce the
sale or lease or file suit to enforce the sale or lease of a covered
school building under subsection (t), if the transaction described in
subsection (t) is not completed within thirty (30) days after the date
the notice of a final unappealable decision is received by the school
corporation, the charter school or state educational institution may
bring a civil action against the school corporation. The court may
award to a charter school or state educational institution that
prevails in an action under this subsection the following:
      (1) Injunctive relief.
      (2) Liquidated damages computed at a rate of ten thousand
      dollars ($10,000) per day for each day that exceeds the thirty
      (30) day time frame described in subsection (t).
    (v) A lease or sale of a covered school building to a charter
school or a state educational institution under this section includes
transfer of:
      (1) those assets that are fixtures of the covered school
      building; and
      (2) adjacent parking lots and playgrounds.
    SECTION 14. IC 20-26-7.1-5, AS AMENDED BY P.L.135-2025,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) If:
      (1) a covered school building is sold to a charter school or state
SEA 239 — CC 1
                                   27
       educational institution under section 4 of this chapter; and
       (2) the charter school or state educational institution described in
       subdivision (1) no longer intends to use the covered school
       building for the purposes described in section 4(l) 4(n) of this
       chapter;
the charter school or state educational institution shall offer to transfer
the covered school building back to the school corporation that initially
sold the covered school building to the charter school or state
educational institution.
    (b) If a school corporation described in subsection (a) declines the
offer to transfer a covered school building back to the school
corporation, the charter school or state educational institution may sell
or transfer the covered school building to a third party. If a charter
school or state educational institution sells or transfers a covered
school building to a third party under this subsection, the charter school
or state educational institution must transfer an amount equal to the
gain in the property minus the adjusted basis (including costs of
improvements to the covered school building) to the school corporation
that initially sold the covered school building to the charter school or
state educational institution. Gain and adjusted basis shall be
determined in the manner prescribed by the Internal Revenue Code and
the applicable Internal Revenue Service regulations and guidelines.
    (c) A charter school or state educational institution that purchases
a covered school building assumes total control of the covered school
building and must maintain the covered school building, including
utilities, insurance, maintenance, and repairs. Except as provided in
subsection (d), in the event a:
       (1) charter school does not use the covered school building for
       classroom instruction; or
       (2) state educational institution does not use the covered school
       building for an academic purpose;
within two (2) three (3) years after acquiring the covered school
building, the covered school building shall revert to the school
corporation, which may sell or otherwise dispose of the covered school
building under IC 36-1-11.
    (d) In the event a:
       (1) charter school does not use the covered school building for
       classroom instruction; or
       (2) state educational institution does not use the covered school
       building for an academic purpose;
as a result of being engaged in ongoing renovations for an acquired
covered school building, within two (2) three (3) years after acquiring
SEA 239 — CC 1
                                   28
an occupancy permit for the covered school building, the covered
school building shall revert to the school corporation, which may sell
or otherwise dispose of the covered school building under IC 36-1-11.
   SECTION 15. IC 20-26-7.1-5.3, AS AMENDED BY P.L.36-2024,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5.3. (a) This section applies to a covered
school building to which the following apply:
      (1) The covered school building was purchased or leased by a
      charter school under this chapter.
      (2) The total student enrollment for in-person instruction in the
      school building in the current school year is at least ten percent
      (10%) less than the student enrollment for in-person instruction
      in the school building in a school year that precedes the current
      school year by five (5).
   (b) A school corporation may not petition the department under
subsection (c) within the first five (5) years after a charter school
purchased or initially leased a covered school building under this
chapter.
   (c) Subject to subsection (f), if:
      (1) the number of full-time equivalent students enrolled for
      in-person instruction in a school building on instructional days (as
      determined under IC 20-30-2) for instructional purposes for a
      school year is not at least fifty percent (50%) of the classroom
      design capacity of the school building; and
      (2) it is consistent with the needs of the school corporation's
      strategic plan;
the school corporation that leased or sold the school building to the
charter school may file a petition with the department requesting that
the charter school transfer the school building back to the school
corporation.
   (d) Before filing a petition under subsection (c), the school
corporation must give written notice to the charter school to determine
whether an agreement can be reached regarding transferring the school
building to the school corporation.
   (e) A petition filed under this section is subject to the same
procedures under IC 20-26-7-47 as a petition filed under
IC 20-26-7-47(h).
   (f) For purposes of determining classroom design capacity under
subsection (c), if a charter school reconfigures a school building after
the charter school leases or purchases the school building, the
classroom design capacity must be determined based on the
reconfigured school building and not the classroom design capacity of
SEA 239 — CC 1
                                   29
the school building at the time of the lease or purchase.
    (g) As a condition precedent for a school corporation to receive
a school building back from a charter school, the school
corporation shall pay the charter school the cost of capital
improvements the charter school made to the school building
minus depreciation.
    SECTION 16. IC 20-32-6.5-3, AS ADDED BY P.L.180-2025,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) Beginning with the 2026-2027 school year,
if a school determines that a student in kindergarten through grade 8 is
at risk of not achieving grade level proficiency in mathematics as
determined by an analysis of the student's data from:
       (1) a grade level screener approved by the department; or
       (2) a through-year statewide assessment;
the school must provide intervention that meets the requirements under
subsection (b).
    (b) A school shall provide intervention to a student described in
subsection (a) that meets the following conditions:
       (1) The intervention includes a multitiered system of support that
       progresses from less to more intensive support based on the
       student's individual needs.
       (2) The intervention is aligned to daily Tier I instruction and
       standard level learning progressions.
       (3) The intervention is:
          (A) targeted;
          (B) differentiated; and
          (C) supplemental to Tier I instruction.
       (4) The intervention:
          (A) is aligned with evidence based instructional strategies to
          promote conceptual understanding, procedural fluency, and
          real world problem solving; and
          (B) allows a student opportunities to interact, show progress,
          and demonstrate understanding through rigorous grade level
          content.
       (5) The intervention includes continual assessment and in depth
       analysis of each student's data to inform the flexible movement in
       and out of Tiers II and III.
    (c) Not later than fifteen (15) days after a school makes a
determination under subsection (a) that a student is at risk, the
school shall provide notice to a parent of the student regarding the
determination. The notification may contain the following:
       (1) Specific information about how the student is performing.
SEA 239 — CC 1
                                  30
     (2) Information about the intervention the student will receive
     from the school.
     (3) A list or description of any recommended resources
     available for use at home to support the student's academic
     growth in mathematics.
   (c) (d) The department shall provide guidance on the multitiered
system that a school is required to provide under subsection (b).
   SECTION 17. IC 20-43-13-4, AS AMENDED BY P.L.213-2025,
SECTION 197, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 4. (a) Except as provided in
subsections (c) and (d), the complexity index is the percentage of the
school corporation's students who were receiving Supplemental
Nutrition Assistance Program (SNAP) benefits, Temporary Assistance
for Needy Families (TANF) benefits, or foster care services as of
October 1 in the school year ending in the later of:
     (1) 2025; or
     (2) the first year of operation of the school corporation.
   (b) For a conversion charter school, the percentage determined
under this section is the percentage of the sponsor school corporation.
   (c) Except as provided in subsection (d), the complexity index for
a school corporation that has entered into an agreement with one (1) or
more charter schools to participate as an innovation network charter
school under IC 20-25.7-5 for a state fiscal year is equal to the result
using the following formula:
     STEP ONE: Determine:
         (A) the school corporation's enrollment; minus
         (B) the following, as applicable:
           (i) For each participating innovation network charter
           school described in IC 20-25.7-5-2(a), the enrollment of
           each participating innovation network charter school.
           (ii) For each participating innovation network charter
           school described in IC 20-25.7-5-2.5(a), the enrollment of
           students described in IC 20-25.7-5-2.5(c)(2) of each
           participating innovation network charter school.
     STEP TWO: Determine the number of students in the school
     corporation who were receiving Supplemental Nutrition
     Assistance Program (SNAP) benefits, Temporary Assistance for
     Needy Families (TANF) benefits, or foster care services as of
     October 1 in the school year ending in 2025, not including
     students enrolled in each participating innovation network charter
     school.
     STEP THREE: Divide the result of STEP TWO by the result of
SEA 239 — CC 1
                               31
   STEP ONE.
   STEP FOUR: Determine the following, as applicable:
      (A) For each participating innovation network charter
      school described in IC 20-25.7-5-2(a), enrollment of each
      participating innovation network charter school.
      (B) For each participating innovation network charter
      school described in IC 20-25.7-5-2.5(a), the enrollment of
      students described in IC 20-25.7-5-2.5(c)(2) of each
      participating innovation network charter school.
   STEP FIVE: Determine, as applicable:
      (A) for each participating innovation network charter
      school described in IC 20-25.7-5-2(a), the number of
      students in each participating innovation network charter
      school; and
      (B) for each participating innovation network charter
      school described in IC 20-25.7-5-2.5(a), the number of
      students described in IC 20-25.7-5-2.5(c)(2) in each
      participating innovation network charter school;
   who were receiving Supplemental Nutrition Assistance Program
   (SNAP) benefits, Temporary Assistance for Needy Families
   (TANF) benefits, or foster care services as of October 1 in the
   school year ending in the later of
      (A) 2025 or
      (B) the first year of operation of the participating innovation
      network charter school.
   STEP SIX: Divide the result of STEP FIVE by the result of STEP
   FOUR.
   STEP SEVEN: For each participating innovation network charter
   school, determine the greater of:
      (A) the result of STEP THREE; or
      (B) the result of STEP SIX.
   STEP EIGHT: For each participating innovation network charter
   school, multiply the result of STEP SEVEN by the result of STEP
   FOUR.
   STEP NINE: Determine the sum of:
      (A) the result of STEP TWO; plus
      (B) the results of STEP EIGHT, for each participating
      innovation network charter school.
   STEP TEN: Determine the sum of:
      (A) the result of STEP ONE; plus
      (B) the results of STEP FOUR for each participating
      innovation network charter school.
SEA 239 — CC 1
                                  32
     STEP ELEVEN: Divide the STEP NINE result by the STEP TEN
     result.
   (d) If the complexity index of a participating innovation network
charter school that was established before January 1, 2016, is, for the
current school year, greater than the complexity index for the school
corporation with which the innovation network charter school has
contracted, the complexity index of the participating innovation
network charter school is determined as described in IC 20-25.7-5-2(e).
IC 20-25.7-5-2(f).
   SECTION 18. An emergency is declared for this act.
SEA 239 — CC 1
President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date:  Time:
SEA 239 — CC 1