All Roll Calls
Yes: 308 • No: 520
IndianaHB 1423Second Regular Session 124th General Assembly (2026)HouseWALLET
Indianapolis public education corporation.
Sponsored By: Robert Behning (Republican)
Became Law
educationthe senateeducation and career developmentappropriations
Your PRIA Score
Score Hidden
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
12 provisions identified: 1 benefits, 0 costs, 11 mixed.
Corporation takes over school city powers
Beginning April 1, 2026, the corporation—not the school city—sets the budget, tax rates, and levies for these school functions. The corporation can sue, sign contracts, buy or sell property, hire staff, borrow as allowed, and handle budgets and payments. After March 31, 2026, it may use the same powers the school city had for school finance under state law. The school city must give the corporation the records it needs to do this work.
Unified school busing starts in 2028
The corporation creates one transportation plan with the school city and a nonprofit. It leads busing to and from participating schools starting in the 2028–2029 school year. The school city and participating schools must join the plan, sign contracts, and follow the corporation’s rules. A progress report is due November 30, 2026, and the full plan is due November 30, 2027.
Separate school debt taxes and distributions
Starting July 1, 2026, the corporation runs debt service under state law. For the January 1, 2027 assessment and after, it must levy two property taxes: one to pay the school city’s obligations and one to pay the corporation’s obligations. Money from referendum levies approved after March 31, 2026 goes to the corporation; earlier referendum levies continue to pay the school city’s debt on the original terms. The corporation must keep a debt service fund and cannot use it to pay voter‑approved controlled‑project debt. After March 31, 2026, the county auditor calculates and distributes revenue shares, and the corporation may request an advance of its first 2026 semiannual distribution; the corporation is also exempt from some state and local budget‑submission reviews.
Central control of school buildings, with opt-outs
Starting in the 2028–2029 school year, the corporation manages and runs school buildings for participating schools. A charter school or the school city may opt out of the corporation’s property control. Opting out blocks the corporation from managing that property. It also cuts off money tied to debt service levies and controlled‑project levies for the opting entity.
One performance system and school closure rules
The corporation must create one school performance framework that starts in 2028–2029. It uses many measures, such as academics, behavior, enrollment, facility condition, finances, and governance. Closing a participating school requires a public hearing, consultation with the department, and approval by the charter authorizer or the school board. If approval is denied, the corporation may appeal to the state board, which must decide in 60 days. A progress report is due August 1, 2026, and the final framework is due November 30, 2027; the board may form an advisory committee.
Rules for school leases and facility money
Schools or the corporation can sign a lease before building begins, but no rent is due until the building is ready, and a completion bond is required. The board must publish notice and hold a public hearing (at least 10 days for new builds or 30 days for improvements). Fifty or more taxpayers can petition within 30 days; the state finance agency must hold a hearing in 5–30 days. Money from selling a school building goes to the operations fund and can only pay for new construction and related land costs; after one year, any unused money must move to debt service. Leased school buildings are exempt from property taxes, but rental income to the lessor is still taxed.
Who pays school debts during transition
Debts from before April 1, 2026 stay with the school city or the participating school. Debts taken on by the corporation after March 31, 2026 are the corporation’s to pay. From April 1, 2026 through June 30, 2027, the corporation is treated as a school corporation for a specific debt rule. In that same period, any state distribution cuts to pay the corporation’s debt must be taken from the school city’s distributions.
New rules for school building leases
The new education corporation can use state school lease powers. Leases can run up to 30 years under standard rules, and up to 50 years when the board finds a need after investigation. Leases must offer renew and purchase options, with capped add‑ons if bought early: up to 2% in the first 5 years, 1% in years 6–10, and none after. Lease partners are limited to Indiana corporations or tax‑exempt religious groups. As few as 10 taxpayers can file within 30 days to challenge a lease.
Fewer agencies can authorize charters
Starting April 1, 2026, only the state charter board, the city’s mayor, or the school city can grant or renew charters in the school city. Charters approved before that date by other authorizers stay in place until they expire or end.
New Indianapolis school corporation and board
The law creates the Indianapolis Public Education Corporation to manage key school services. The mayor appoints a nine-member board; all members must live in the school city. Appointments are due by March 31, 2026, with four‑year, staggered terms. Board members are unpaid, and the state audits the corporation. Existing contracts stay in place, but new or renewed contracts must follow the new rules and state oversight.
Who runs schools and closure rules
The school board keeps its powers except those the law gives to the new education corporation. Some school building closure review and reporting rules do not apply to a school city. This clarifies who decides and trims certain closure oversight for the school city.
Limits on school borrowing and tax growth
After March 31, 2026, the school city cannot issue new bonds or debt backed by property, excise, or local income taxes. From April 1, 2026 to July 1, 2027, the new education corporation must get a school board resolution before it issues bonds, signs leases, or takes on debt. The corporation also uses the state maximum levy growth quotient to set its operations fund levy. These rules control tax‑backed borrowing during the transition and guide how fast levies can grow.
Sponsors & Cosponsors
Sponsor
Robert Behning
Republican • House
Cosponsors
Jeff Raatz
Republican • Senate
Julie McGuire
Republican • House
Roll Call Votes
House vote • 2/25/2026
Roll Call 384 on HB1423.07.ENGS.CON01
Yes: 67 • No: 30
Senate vote • 2/24/2026
Roll Call 262 on HB1423.06.COMS
Yes: 27 • No: 21
Senate vote • 2/23/2026
Roll Call 217 on HB1423.06.COMS.AMS003
Yes: 8 • No: 39 • Other: 2
Senate vote • 2/23/2026
Roll Call 219 on HB1423.06.COMS.AMS002
Yes: 9 • No: 39 • Other: 1
Senate vote • 2/23/2026
Roll Call 220 on HB1423.06.COMS.AMS010
Yes: 9 • No: 39 • Other: 1
Senate vote • 2/23/2026
Roll Call 218 on HB1423.06.COMS.AMS001
Yes: 7 • No: 39 • Other: 3
Senate vote • 2/23/2026
Roll Call 221 on HB1423.06.COMS.AMS012
Yes: 10 • No: 38 • Other: 1
House vote • 2/2/2026
Roll Call 198 on HB1423.04.ENGH
Yes: 68 • No: 30 • Other: 2
House vote • 1/29/2026
Roll Call 162 on HB1423.03.COMH.AMH009
Yes: 26 • No: 60 • Other: 7
House vote • 1/29/2026
Roll Call 164 on HB1423.03.COMH.AMH008
Yes: 24 • No: 63 • Other: 7
House vote • 1/29/2026
Roll Call 161 on HB1423.03.COMH.AMH002
Yes: 28 • No: 60 • Other: 5
House vote • 1/29/2026
Roll Call 163 on HB1423.03.COMH.AMH006
Yes: 25 • No: 62 • Other: 7
Actions Timeline
Public Law 101
3/4/2026HouseSigned by the Governor
3/4/2026HouseSigned by the President Pro Tempore
2/27/2026SenateSigned by the President of the Senate
2/27/2026SenateSigned by the Speaker
2/26/2026HouseHouse concurred with Senate amendments; Roll Call 384: yeas 67, nays 30
2/25/2026HouseMotion to concur filed
2/25/2026HouseReturned to the House with amendments
2/25/2026SenateThird reading: passed; Roll Call 262: yeas 27, nays 21
2/24/2026SenateSenator Johnson T removed as second sponsor
2/24/2026SenateAmendment #7 (Hunley) failed; voice vote
2/23/2026SenateAmendment #2 (Qaddoura) failed; Roll Call 219: yeas 9, nays 39
2/23/2026SenateAmendment #1 (Qaddoura) failed; Roll Call 218: yeas 7, nays 39
2/23/2026SenateAmendment #3 (Qaddoura) failed; Roll Call 217: yeas 8, nays 39
2/23/2026SenateAmendment #5 (Raatz) prevailed; voice vote
2/23/2026SenateAmendment #9 (Hunley) failed; voice vote
2/23/2026SenateAmendment #6 (Hunley) failed; voice vote
2/23/2026SenateAmendment #8 (Hunley) failed; voice vote
2/23/2026SenateAmendment #12 (Hunley) failed; Roll Call 221: yeas 10, nays 38
2/23/2026SenateAmendment #11 (Hunley) failed; voice vote
2/23/2026SenateAmendment #10 (Hunley) failed; Roll Call 220: yeas 9, nays 39
2/23/2026SenateSecond reading: amended, ordered engrossed
2/23/2026SenateCommittee report: do pass, adopted
2/19/2026SenateCommittee report: amend do pass adopted; reassigned to Committee on Appropriations
2/12/2026SenateFirst reading: referred to Committee on Education and Career Development
2/3/2026Senate
Bill Text
Engrossed House Bill (H)
Engrossed House Bill (S)
Enrolled House Bill (H)
House Bill (H)
House Bill (S)
Introduced House Bill (H)