HB 1430

                                                    Introduced Version
         HOUSE BILL No. 1430
               _____
            DIGEST OF INTRODUCED BILL
Citations Affected: IC 3-10-9-3; IC 20-40-23; IC 20-46-10.
Synopsis: Referenda on preschool funding levies. Allows the
legislative body of a county and certain cities to adopt a resolution to
place a referendum on the ballot to impose a local preschool
referendum tax levy (levy) to fund administration of a preschool
program and provide tuition and other assistance. Allows a unit to
impose a levy if approved by a majority of the voters. Provides that
voters may not approve a levy that is imposed for more than eight
years. Specifies procedures for the referendum. Provides that a unit that
imposes a levy must establish a preschool education program and a
local preschool education referendum tax levy fund.
Effective: Upon passage.
                       Johnson B
   January 8, 2026, read first time and referred to Committee on Elections and
Apportionment.
2026  IN 1430—LS 6873/DI 152
                                                                                       Introduced
            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.
                   HOUSE BILL No. 1430
    A BILL FOR AN ACT to amend the Indiana Code concerning
 education.
     Be it enacted by the General Assembly of the State of Indiana:
1     SECTION 1. IC 3-10-9-3, AS AMENDED BY P.L.68-2025,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 3. (a) Except as provided in subsection (b), if
4 a local public question must be certified to an election board by law,
5 that certification must occur no later than noon:
6(1) seventy-four (74) days before a primary election if the public
7question is to be placed on the primary or municipal primary
8election ballot; or
9(2) August 1 if the public question is to be placed on the general
10or municipal election ballot.
11     (b) A referendum or local public question:
12(1) under IC 20-46-1;
13(2) under IC 20-46-9; or
14(3) under IC 20-46-10; or
15(3) (4) under IC 6-1.1-20 for controlled projects;
16 may be placed on the ballot only at a general election. Certification of
17 a local public question under this subsection must occur not later than
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1 noon August 1.
2    SECTION 2. IC 20-40-23 IS ADDED TO THE INDIANA CODE
3 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
4 UPON PASSAGE]:
5    Chapter 23. Preschool Education Program and Fund
6    Sec. 1. As used in this chapter, "administrator" means an
7 administrator selected by a unit under section 12 of this chapter.
8    Sec. 2. As used in this chapter, "eligible child" refers to an
9 individual who:
10      (1) is at least three (3) years of age and less than five (5) years
11      of age on August 1 of the unit's fiscal year for which a grant
12      is sought under the local preschool education program;
13      (2) is a resident of Indiana or otherwise has legal settlement
14      in Indiana, as determined under IC 20-26-11; and
15      (3) resides within the boundaries of the unit in which a levy
16      under IC 20-46-10 is imposed.
17    Sec. 3. As used in this chapter, "eligible provider" refers to a
18 provider that is a:
19      (1) child care center licensed under IC 12-17.2-4;
20      (2) child care home licensed under IC 12-17.2-5;
21      (3) child care ministry registered under IC 12-17.2-6;
22      (4) public school, including a charter school; or
23      (5) nonpublic school that is accredited by the state board of
24      education or a national or regional accreditation agency that
25      is recognized by the state board of education;
26 that meets the standards determined by an administrator under
27 section 13 of this chapter.
28    Sec. 4. As used in this chapter, "fund" refers to a local preschool
29 education referendum tax levy fund established under section 10
30 of this chapter.
31    Sec. 5. As used in this chapter, "levy" refers to a local preschool
32 education referendum tax levy imposed under IC 20-46-10 for the
33 fund.
34    Sec. 6. As used in this chapter, "paths to QUALITY program"
35 has the meaning set forth in IC 12-17.2-2-14.2(b).
36    Sec. 7. As used in this chapter, "preschool education program"
37 refers to a local preschool education program established under
38 section 9 of this chapter.
39    Sec. 8. As used in this chapter, "unit" means a:
40      (1) county;
41      (2) first class city, as classified under IC 36-4-1-1; or
42      (3) second class city, as classified under IC 36-4-1-1.
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1    Sec. 9. (a) A unit for which a levy is approved under IC 20-46-10
2 shall establish a local preschool education program to provide:
3(1) tuition assistance to eligible children; and
4(2) capacity investments, quality improvement, and capacity
5expansion grants to eligible providers.
6    (b) The administrator selected under section 12 of this chapter
7 shall administer the preschool education program.
8    (c) The preschool education program includes eligible providers
9 in any county in Indiana.
10    Sec. 10. (a) A unit for which a levy is approved under
11 IC 20-46-10 shall establish a local preschool education referendum
12 tax levy fund to support the preschool education program.
13    (b) A fund established under subsection (a) consists of the
14 following:
15(1) Revenue from a levy imposed under IC 20-46-10.
16(2) Interest that accrues from the revenue deposited in the
17fund.
18(3) Gifts to the fund.
19(4) Grants, including grants from private entities.
20    (c) The administrator shall administer the fund in accordance
21 with section 11 of this chapter.
22    (d) Money in the fund does not revert to the general fund of a
23 unit at the end of the unit's fiscal year.
24    Sec. 11. (a) The administrator may use money in the fund only
25 for the following purposes:
26(1) To provide tuition assistance for an eligible child to attend
27an eligible provider.
28(2) To provide payment of the administrative fee described in
29subsection (c).
30(3) If money in the fund is available at the end of a unit's fiscal
31year, money in the fund may be used at the discretion of the
32administrator for capacity investments, quality improvement,
33and start up grants to expand capacity that meet the eligibility
34standards described in this chapter.
35    (b) Money in the fund may not be used for political advocacy
36 concerning any public question or for expenditures prohibited by
37 IC 35-44.1-1.
38    (c) The expenses of administering the fund shall be paid
39 exclusively from money in the fund. However, an administrator
40 may not expend more than three percent (3%) of the total amount
41 deposited into the fund from the referendum levy collections under
42 IC 20-46-10 during the unit's fiscal year to pay for the expenses of
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1 administering the fund.
2     (d) An expenditure may not be made from the fund unless it is
3 in accordance with an appropriation made by the fiscal body of the
4 unit in the manner provided by law.
5     Sec. 12. (a) The governing body of a unit shall contract with an
6 administrator to manage the fund in accordance with IC 5-22 or
7 other applicable statutes.
8     (b) An administrator selected under subsection (a) must be a
9 nonprofit corporation that:
10(1) is exempt from federal income taxation under Section
11501(c)(3) of the Internal Revenue Code; and
12(2) is not an eligible provider or affiliated with an eligible
13provider.
14     Sec. 13. (a) Subject to the requirements of this chapter, the
15 administrator selected under section 12 of this chapter shall do the
16 following:
17(1) Determine the educational standards a provider must meet
18to be considered an eligible provider under this chapter.
19(2) Develop and provide a uniform selection and application
20process for eligible children and eligible providers to receive
21tuition assistance.
22(3) Verify the information provided by an eligible child or an
23eligible provider in an application described in subdivision
24(1).
25(4) Use federal or state funding, if available, for the purposes
26described in section 9(a) of this chapter in order to minimize
27withdrawals from the fund.
28(5) Disburse money for tuition assistance from the fund to an
29eligible provider on behalf of an eligible child.
30(6) Determine the number of eligible children who may
31participate in the local prekindergarten program based on
32available funding and establish a wait list if funding is not
33sufficient to provide tuition assistance to each eligible child.
34     (b) In determining the educational standards described in
35 subsection (a)(1), an administrator shall require an eligible
36 provider to, at a minimum, meet the standards of quality
37 recognized by a Level 3 or Level 4 paths to QUALITY program
38 rating.
39     (c) In addition to the standards described in subsection (b), an
40 administrator may also require an eligible provider to meet more
41 rigorous criteria, if the criteria does the following:
42(1) Relates solely to academic readiness, which may include:
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1(A) alignment to state early learning foundations;
2(B) validated readiness measures;
3(C) educator learning tied to literacy and numeracy; or
4(D) evidence based practices.
5(2) Applies uniformly to all eligible providers.
6(3) Is prospective and published.
7(4) Does not conflict with the academic standards described in
8IC 12-17.2 or IC 20-31-4.1.
9    Sec. 14. (a) An administrator shall obtain an annual
10 independent financial audit of the preschool program's
11 administrative and tuition assistance payment activities by a
12 certified public accountant in accordance with the guidelines of the
13 state examiner.
14    (b) The administrator shall:
15(1) submit the audit described in subsection (a) to the state
16board of accounts for publishing in accordance with IC 5-11;
17and
18(2) present the audit described in subsection (a) and other
19program data at a public meeting of the unit's governing body
20at least once during the unit's fiscal year.
21    SECTION 3. IC 20-46-10 IS ADDED TO THE INDIANA CODE
22 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
23 UPON PASSAGE]:
24    Chapter 10. Local Preschool Referendum Tax Levy
25    Sec. 1. As used in this chapter, "fund" refers to the local
26 preschool education referendum tax levy fund established under
27 IC 20-40-23-10.
28    Sec. 2. As used in this chapter, "levy" refers to the property tax
29 levy imposed under this chapter.
30    Sec. 3. As used in this chapter, "referendum" refers to a
31 referendum under this chapter.
32    Sec. 4. As used in this chapter, "resolution to extend a
33 referendum levy" refers to a resolution adopted under section 11
34 of this chapter to place a referendum on the ballot requesting
35 authority to continue imposing a tax rate, which is the same as or
36 lower than the tax rate previously approved by the voters of the
37 unit.
38    Sec. 5. As used in this chapter, "unit" means a:
39(1) county;
40(2) first class city, as classified under IC 36-4-1-1; or
41(3) second class city, as classified under IC 36-4-1-1.
42    Sec. 6. A unit may impose a local preschool education
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1 referendum tax levy for the local preschool education referendum
2 tax levy fund under this chapter.
3    Sec. 7. (a) Subject to subsection (c), the legislative body of a unit
4 may adopt a resolution to place a referendum under this chapter
5 on the ballot if the legislative body determines that a local
6 preschool education referendum tax levy should be imposed for the
7 purposes described in IC 20-40-23-9.
8    (b) The legislative body of the unit shall certify a copy of the
9 resolution to place a referendum on the ballot to the following:
10(1) The department of local government finance, including:
11(A) the language for the question required by section 10 of
12this chapter, or, in the case of a resolution to extend a
13referendum levy, section 12 of this chapter; and
14(B) a copy of the revenue spending plan adopted under
15subsection (c).
16The department shall review the language for compliance
17with section 10 or 12 of this chapter, whichever is applicable,
18and either approve or reject the language. The department
19shall send its decision to the legislative body of the unit not
20more than ten (10) days after the resolution is submitted to
21the department. If the language is approved, the legislative
22body of the unit shall certify a copy of the resolution,
23including the language for the question and the department's
24approval.
25(2) The county fiscal body of the county.
26(3) The circuit court clerk of the county.
27    (c) As part of the resolution described in subsection (a), the
28 legislative body of the unit shall adopt a revenue spending plan for
29 the proposed referendum tax levy that includes at least the
30 following:
31(1) An estimate of the amount of annual revenue expected to
32be collected if a levy is imposed under this chapter.
33(2) The specific purposes for which the revenue collected from
34a levy imposed under this chapter will be used.
35(3) An estimate of the annual dollar amounts that will be
36expended for each purpose described in subdivision (2).
37(4) The entity the unit intends to select as the administrator of
38the fund and the percentage fee the administrator will receive
39under IC 20-40-23-11(c). The percentage fee may not exceed
40three percent (3%).
41(5) A list of the reporting requirements under IC 20-40-23.
42(6) A summary of the education standards the administrator
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1intends to adopt under IC 20-40-23-13.
2     (d) The legislative body of a unit shall specify in its proposed
3 budget the unit's revenue spending plan described in subsection (c)
4 and annually present the revenue spending plan at its public
5 hearing on the proposed budget under IC 6-1.1-17-3.
6     Sec. 8. The voters in a referendum may not approve a levy that
7 is imposed for more than eight (8) years. However, a levy may be
8 reimposed or extended under this chapter.
9     Sec. 9. A local preschool education referendum tax levy under
10 this chapter may be put into effect only if a majority of the
11 individuals who vote in a referendum that is conducted in
12 accordance with this chapter approves the unit imposing a levy for
13 the ensuing calendar year.
14     Sec. 10. (a) This section does not apply to a referendum on a
15 resolution certified to the department of local government finance
16 to extend a referendum levy.
17     (b) The question to be submitted to the voters in the referendum
18 must read as follows:
19"Shall ________ (insert the name of the unit) increase
20property taxes paid to the unit for no more than ______
21(insert the number of years immediately following the holding
22of the referendum) years for the purpose of funding
23administration of a preschool program and tuition assistance
24by imposing a property tax rate that does not exceed ______
25(insert property tax rate) and results in a maximum annual
26amount that does not exceed ______ (insert maximum amount
27of annual levy)? If this local preschool referendum public
28question is approved by the voters, for a median residence of
29______ (insert the unit's median household assessed value,
30rounded up to the next fifty thousand dollars ($50,000)), the
31property's annual property tax bill would increase by ______
32(insert dollar amount, rounded up to the next whole dollar)
33per year. (If, in the previous five (5) years, the unit has
34conducted a local preschool referendum public question, the
35following shall also be included in the ballot language.) The
36most recent local preschool referendum public question
37proposed by the unit was held in ______ (insert year) and
38______ (insert whether the measure passed or failed).".
39     Sec. 11. (a) Before the legislative body of a unit may adopt a
40 resolution to extend a referendum levy under this chapter, the
41 legislative body shall conduct a review of the outcomes report and
42 independent financial audit obtained by the administrator under
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1 IC 20-40-23-14 at a public hearing. The public hearing required
2 under this subsection must be held during the calendar year that
3 falls halfway through the term of the initial referendum levy.
4    (b) A resolution to extend a referendum levy must be:
5(1) adopted by the legislative body of a unit; and
6(2) approved in a referendum under this chapter;
7 before December 31 of the final calendar year in which the unit's
8 previously approved referendum levy is imposed under this
9 chapter.
10    Sec. 12. (a) This section applies only to a referendum to allow a
11 unit to extend a referendum levy.
12    (b) The question to be submitted to the voters in the referendum
13 must read as follows:
14"Shall _______ (insert the name of the unit) continue to
15increase property taxes paid to the unit for no more than
16_____ (insert the number of years immediately following the
17holding of the referendum) years for the purpose of funding
18administration of a preschool program and tuition assistance
19by imposing a property tax rate that does not exceed ______
20(insert property tax rate) and results in a maximum annual
21amount that does not exceed ______ (insert maximum amount
22of annual levy)? If this local preschool referendum public
23question is NOT approved by the voters, for a median
24residence of __________ (insert the unit's median household
25assessed value, rounded up to the next fifty thousand dollars
26($50,000)), the property's annual tax bill would decrease by
27______ (insert dollar amount, rounded up to the next whole
28dollar) per year. If this local preschool referendum public
29question is approved by the voters, it would be a renewal of
30the most recent local preschool referendum public question
31passed in ______ (insert year the original local preschool
32referendum public question passed) with a property tax rate
33of ______ (insert property tax rate of the original local
34preschool referendum public question).".
35    (c) The number of years for which a referendum tax levy may
36 be extended if the public question under this section is approved
37 may not exceed eight (8) years.
38    Sec. 13. Each year, the county auditor, with cooperation from
39 the department of local government finance, shall determine the
40 tax rate needed to raise the maximum amount of the annual levy
41 for the year as described under section 10 or 12 of this chapter, as
42 applicable, and shall determine all other information needed for
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1 the ballot language in those sections.
2    Sec. 14. The county auditor shall distribute proceeds collected
3 from an allocation area (as defined in IC 6-1.1-21.2-3) that are
4 attributable to property taxes imposed after being approved by the
5 voters in a referendum to the taxing unit for which the referendum
6 was conducted.
7    Sec. 15. Each circuit court clerk shall, upon receiving the
8 question certified by the governing body of a unit under this
9 chapter, call a meeting of the county election board to make
10 arrangements for the referendum.
11    Sec. 16. The referendum shall be held in the next general
12 election, as provided under IC 3-10-9-3(b), in which all the
13 registered voters who are residents of the unit are entitled to vote
14 after certification of the question. The certification of the question
15 must occur not later than noon August 1.
16    Sec. 17. Each county election board shall cause:
17(1) the question certified to the circuit court clerk by the
18governing body of a unit to be placed on the ballot in the form
19prescribed by IC 3-10-9-4; and
20(2) an adequate supply of ballots and voting equipment to be
21delivered to the precinct election board of each precinct in
22which the referendum is to be held.
23    Sec. 18. (a) The individuals entitled to vote in the referendum
24 are all of the registered voters who reside in the territory of the
25 unit.
26    (b) An individual who changes residence from a location within
27 a unit to a location outside of the unit less than thirty (30) days
28 before an election under this chapter may not vote on the public
29 question.
30    Sec. 19. Each precinct election board shall count the affirmative
31 votes and the negative votes cast in the referendum and shall
32 certify those two (2) totals to the county election board of each
33 county in which the referendum is held. The circuit court clerk of
34 each county shall, immediately after the votes cast in the
35 referendum have been counted, certify the results of the
36 referendum to the department of local government finance. If a
37 majority of the individuals who voted in the referendum voted
38 "yes" on the referendum question:
39(1) the department of local government finance shall promptly
40notify the unit that the unit is authorized to collect, for the
41calendar year that next follows the calendar year in which the
42referendum is held, a levy not greater than the amount
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1      approved in the referendum;
2      (2) the levy may be imposed for the number of calendar years
3      approved by the voters following the referendum for the unit
4      in which the referendum is held; and
5      (3) the unit shall establish a fund under IC 20-40-23-10.
6    Sec. 20. A unit's levy under this chapter may not be considered
7 in the determination of the unit's maximum permissible ad
8 valorem property tax levy under IC 6-1.1-18.5 or any other
9 property tax levy imposed by the unit.
10    Sec. 21. (a) If a majority of the persons who voted in the
11 referendum did not vote "yes" on the referendum question:
12      (1) the unit may not make any levy for its local preschool
13      referendum tax levy fund; and
14      (2) another referendum under this chapter may not be held
15      earlier than:
16(A) except as provided in clause (B), seven hundred (700)
17days after the date of the referendum; or
18(B) three hundred fifty (350) days after the date of the
19referendum, if a petition that meets the requirements of
20subsection (b) is submitted to the county auditor.
21    (b) If a majority of the individuals who voted in the referendum
22 did not vote "yes" on the referendum question, a petition may be
23 submitted to the county auditor to request that the limit under
24 subsection (a)(2)(B) applies to the holding of a subsequent
25 referendum by the unit. If such a petition is submitted to the
26 county auditor and is signed by the lesser of:
27      (1) five hundred (500) individuals who are either owners of
28      property within the unit or registered voters residing within
29      the unit; or
30      (2) five percent (5%) of the registered voters residing within
31      the unit;
32 the limit under subsection (a)(2)(B) applies to the holding of a
33 second referendum by the unit, and the limit under subsection
34 (a)(2)(A) does not apply to the holding of a second referendum by
35 the unit.
36    Sec. 22. (a) If a referendum is approved by the voters in a unit
37 under this chapter in a calendar year, another referendum may not
38 be placed on the ballot in the unit under this chapter in the
39 following calendar year.
40    (b) Notwithstanding any other provision of this chapter and in
41 addition to the restriction specified in subsection (a), if a unit
42 imposes in a calendar year a referendum levy approved in a
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1 referendum under this chapter, the unit may not simultaneously
2 impose in that calendar year more than one (1) additional
3 referendum levy approved in a subsequent referendum under this
4 chapter.
5    Sec. 23. (a) Except as otherwise provided in this section, during
6 the period beginning with the adoption of a resolution by the
7 legislative body of a unit to place a referendum under this chapter
8 on the ballot and continuing through the day on which the
9 referendum is submitted to the voters, the unit may not promote a
10 position on the referendum by doing any of the following:
11(1) Using facilities or equipment, including mail and
12messaging systems, owned by the unit to promote a position
13on the referendum, unless equal access to the facilities or
14equipment is given to persons with a position opposite to that
15of the unit.
16(2) Making an expenditure of money from a fund controlled
17by the unit to promote a position on the referendum.
18(3) Using an employee to promote a position on the
19referendum during the employee's normal working hours or
20paid overtime, or otherwise compelling an employee to
21promote a position on the referendum at any time. However,
22if a person described in subsection (c) is advocating for or
23against a position on the referendum or discussing the
24referendum as authorized under subsection (c), an employee
25of the unit may assist the person in presenting information on
26the referendum, if requested to do so by the person described
27in subsection (c).
28 However, this section does not prohibit an official or employee of
29 the unit from carrying out duties with respect to a referendum that
30 are part of the normal and regular conduct of the official's or
31 employee's office or agency, including the furnishing of factual
32 information regarding the referendum in response to inquiries
33 from any person.
34    (b) This subsection does not apply to:
35(1) a personal expenditure to promote a position on a local
36public question by an employee of a unit whose employment
37is governed by a collective bargaining contract or an
38employment contract; or
39(2) an expenditure to promote a position on a local public
40question by a person or an organization that has a contract or
41an arrangement (whether formal or informal) with the unit
42solely for the use of the unit's facilities.
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1 A person or an organization that has a contract or arrangement
2 (whether formal or informal) with a unit to provide goods or
3 services to the unit may not spend any money to promote a position
4 on the referendum. A person or an organization that violates this
5 subsection commits a Class A infraction.
6    (c) Notwithstanding any other law, a member of the legislative
7 body of the unit may at any time:
8      (1) personally advocate for or against a position on a
9      referendum; or
10      (2) discuss the referendum with any individual, group, or
11      organization or personally advocate for or against a position
12      on a referendum before any individual, group, or
13      organization;
14 so long as it is not done by using public funds. Advocacy or
15 discussion allowed under this subsection is not considered a use of
16 public funds.
17    Sec. 24. Nothing in this chapter may be construed to create or
18 obligate creation of a program administered by the state.
19    Sec. 25. The provisions of this chapter are severable.
20    SECTION 4. An emergency is declared for this act.
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