# Indiana HB 1423: Indianapolis public education corporation. Indiana HB 1423, Indianapolis public education corporation., is a Second Regular Session 124th General Assembly (2026) House bill sponsored by Robert Behning (Republican); status signed, last action 2026-03-04 (Signed by the Governor); PRIA reads it as touching household money (as of 2026-11-01). - Canonical: https://policyrisk.com/state-bill/IN-HB1423-2026 - As of: 2026-11-01 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Indiana HB 1423 - State: Indiana - Session: Second Regular Session 124th General Assembly (2026) - Title: Indianapolis public education corporation. - Status: signed - Chamber: House - Introduced: 2026-01-08 - Last action: 2026-03-04, Signed by the Governor - Sponsor: Robert Behning (Republican) - Cosponsors: 2 - Subjects: education, education and career development, the senate, appropriations - Touches household money: yes - Roll calls: 12 (308 yes, 520 no in all) - Economic provisions PRIA read: 20 ## Summary Establishes the Indianapolis public education corporation (corporation) and board (corporation board). Establishes the duties and powers of the corporation and corporation board. Provides that the Indianapolis public schools school corporation (school city) is not subject to building closure or certain transfer of school building laws. Allows only certain authorizers to grant or renew charters for charter schools located within the geographic boundaries of the school city. Specifies authority and duties of the corporation related to imposition of property taxes. Provides that the corporation is authorized to pursue a controlled project, operating referendum, or school safety referendum (instead of the school city). Requires the county auditor to transfer to the corporation a percentage of the amount of revenue collected from the operations fund property tax levy that would otherwise be distributed to the school city and applicable charter schools. Establishes the corporation operations fund and corporation debt service fund. Provides that the corporation may issue bonds, enter leases, or otherwise incur indebtedness after March 31, 2026, and before July 1, 2027, only if the board of school commissioners of the school city first adopts a resolution approving the issuance of the bonds, entering into the lease, or incurring of indebtedness. Provides, beginning April 1, 2026, and ending June 30, 2027, the reduction of distributions to pay for debt service obligations issued by the corporation must be made from reductions of distributions to the school city for failure to pay debt service obligations. ## Bill overview: provisions PRIA read - Unified school transportation for Indianapolis families: benefit, medium. Beginning with the 2028-2029 school year, the corporation must run a unified transportation plan for participating schools. The plan covers trips to and from those schools within the school city and must identify full funding needs. The school city and all participating schools must take part. The… - School tax ballots disclose homeowner costs: benefit, low. Operating-referendum ballots based on corporation board resolutions must state the purpose, duration, tax rate, and maximum annual levy. They must estimate the yearly tax increase for a median home. When Indianapolis Public Schools held an operating referendum within five years, ballots must give t… - Indianapolis school corporation gets early funding: benefit, low. The Indianapolis Public Education Corporation’s board can request an advance against its first semiannual tax distribution in 2026. It must submit a written request to the county treasurer. The advance cannot exceed the smaller of 95% of taxes already collected or 95% of the scheduled distribution.… - School operations levy growth factor capped: benefit, low. The corporation uses the school-corporation levy growth factor to calculate the school city's maximum operations levy. For 2024, 2025, and 2026, a special calculation caps that factor at 1.04. This limits one part of the maximum-levy calculation, not each property's tax bill. - Tax exemptions expand for school lessors: benefit, low. Qualifying corporations leasing to the Indianapolis Public Education Corporation receive exemptions from state, county, and other taxes. Covered property, stock, securities, interest, and dividends qualify, but the financial institutions tax still applies. A separate exemption covers school buildin… - Indianapolis property taxes must cover school debts: cost, low. Beginning July 1, 2026, the Indianapolis Public Education Corporation takes over the school city’s debt-service levy powers. Starting with the January 1, 2027, assessment date, it must levy enough property tax to pay both entities’ obligations. For taxes first due after December 31, 2027, the schoo… - Fewer authorizers for Indianapolis charter schools: cost, low. Beginning April 1, 2026, only the charter board, Indianapolis mayor, or school city can grant or renew local charters. This applies to charter schools within the school city's boundaries. Earlier charters from other authorizers remain valid until they expire or end. Later grants or renewals must co… - New board oversees Indianapolis school services: mixed, low. The law creates the mayor-appointed Indianapolis Public Education Corporation to coordinate school transportation, property, and performance. Beginning April 1, 2026, it can exercise the school city's powers under the law's corporation chapter. The school city and participating schools must contrac… - New performance and closure rules for schools: mixed, low. Beginning with 2028-2029, the corporation must work with the school city and charter authorizers on one school performance framework. It must include processes for closing chronically low-performing schools and inefficient buildings. School closures require state education consultation and a local… - Shared school buildings with opt-out tradeoffs: mixed, low. Beginning with 2028-2029, the corporation manages school property and must share access fairly among participating schools when possible. The school city and eligible participating charter schools, including innovation network charter schools, can opt out. Schools that opt out lose access to debt-s… - Indianapolis school project taxes change hands: mixed, low. Beginning April 1, 2026, the Indianapolis Public Education Corporation takes over the school city’s controlled-project tax powers. Revenue from project levies approved after March 31, 2026, goes to the corporation. For levies also first imposed after that date, county auditor payments are subject t… - Indianapolis school taxes support shared funding: mixed, low. Beginning April 1, 2026, the Indianapolis Public Education Corporation takes over operating and school-safety referendum tax powers. Revenue from those levies approved after March 31, 2026, goes to the school city and applicable charter schools. Earlier operating levies continue through their terms… - Indianapolis gains long-term school lease options: mixed, low. The corporation can lease school buildings for up to 30 years under one framework and 50 years under another. The 30-year route requires findings of need and insufficient funds; the 50-year route permits qualifying companies or religious lessors. Applicable notice, hearing, approval, objection, ren… - Indianapolis school corporation gains financial control: mixed, low. Beginning April 1, 2026, the Indianapolis Public Education Corporation takes over school budget, tax-rate, and levy reviews; the school city must provide records. The corporation is exempt from the listed local fiscal reviews and approvals for budgets, levies, bonds, and property-tax-backed leases.… - Indianapolis school finance powers shift boards: mixed, low. Beginning April 1, 2026, the corporation takes over the school city's budget, tax-rate, levy, and specified borrowing duties. Its budgets and levies must account for school-city debt incurred before that date. The school city can no longer use the transferred borrowing and levy powers. County audit… - School borrowing faces shared debt limits: mixed, low. The corporation can borrow, including against current tax collections, but its borrowing and school-city debt share one statutory limit. From April 1, 2026, through June 30, 2027, new bonds, leases, and other debt need school commissioners' approval. Debt incurred before April 1, 2026, stays with t… - School debt gets temporary payment protection: mixed, low. The corporation must place debt-service levy revenue in a dedicated fund for authorized building, bus, lease, loan-interest, judgment, and equipment costs. Covered lease payments must appear in its annual budget; the fund cannot pay specified referendum-approved project obligations. From April 1, 2… - School land sales require price safeguards: mixed, low. The corporation can transfer land to a lessor company that provides a leased school building. Sale prices must meet appraised fair market value and, for land bought within three years, the corporation's purchase cost. Three court-appointed appraisers determine value. Under the applicable framework,… - School leases require funding but allow refinancing: mixed, low. Covered school corporations and the Indianapolis corporation can issue general obligation bonds when exercising school-building purchase options. Lease payments require sufficient appropriations: the first budget period covers estimated first-year rent, using debt-service or permitted operations fu… - School revenue funds new corporation operations: mixed, low. The board must create a fair formula for sharing property-tax revenue and other money among the school city and participating schools. The corporation's share of covered tax distributions cannot exceed 3% per settlement period. County auditors send the board-set share to its operations fund first i… ## Sponsors and cosponsors - Sponsor: Robert Behning (Republican), House - Cosponsor: Jeff Raatz (Republican), Senate - Cosponsor: Julie McGuire (Republican), House ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-02-25 | House | House concurred with Senate amendments | pass | 67 | 30 | | | 2026-02-24 | Senate | Third reading: passed | pass | 27 | 21 | | | 2026-02-23 | Senate | Amendment #2 (Qaddoura) failed | fail | 9 | 39 | | | 2026-02-23 | Senate | Amendment #1 (Qaddoura) failed | fail | 7 | 39 | | | 2026-02-23 | Senate | Amendment #3 (Qaddoura) failed | fail | 8 | 39 | | | 2026-02-23 | Senate | Amendment #10 (Hunley) failed | fail | 9 | 39 | | | 2026-02-23 | Senate | Amendment #12 (Hunley) failed | fail | 10 | 38 | | | 2026-02-02 | House | Third reading: passed | pass | 68 | 30 | | | 2026-01-29 | House | Amendment #9 (Bartlett) failed | fail | 26 | 60 | | | 2026-01-29 | House | Amendment #8 (Smith V) failed | fail | 24 | 63 | | | 2026-01-29 | House | Amendment #2 (DeLaney) failed | fail | 28 | 60 | | | 2026-01-29 | House | Amendment #6 (Smith V) failed | fail | 25 | 62 | | ## Actions (40) - 2026-03-04: Signed by the Governor (House) - 2026-03-04: Public Law 101 (House) - 2026-02-27: Signed by the President of the Senate (Senate) - 2026-02-27: Signed by the President Pro Tempore (Senate) - 2026-02-26: Signed by the Speaker (House) - 2026-02-25: Motion to concur filed (House) - 2026-02-25: House concurred with Senate amendments; Roll Call 384: yeas 67, nays 30 (House) - 2026-02-25: Returned to the House with amendments (Senate) - 2026-02-24: Senator Johnson T removed as second sponsor (Senate) - 2026-02-24: Third reading: passed; Roll Call 262: yeas 27, nays 21 (Senate) - 2026-02-23: Second reading: amended, ordered engrossed (Senate) - 2026-02-23: Amendment #9 (Hunley) failed; voice vote (Senate) - 2026-02-23: Amendment #6 (Hunley) failed; voice vote (Senate) - 2026-02-23: Amendment #12 (Hunley) failed; Roll Call 221: yeas 10, nays 38 (Senate) - 2026-02-23: Amendment #8 (Hunley) failed; voice vote (Senate) - 2026-02-23: Amendment #11 (Hunley) failed; voice vote (Senate) - 2026-02-23: Amendment #10 (Hunley) failed; Roll Call 220: yeas 9, nays 39 (Senate) - 2026-02-23: Amendment #7 (Hunley) failed; voice vote (Senate) - 2026-02-23: Amendment #2 (Qaddoura) failed; Roll Call 219: yeas 9, nays 39 (Senate) - 2026-02-23: Amendment #1 (Qaddoura) failed; Roll Call 218: yeas 7, nays 39 (Senate) - 2026-02-23: Amendment #3 (Qaddoura) failed; Roll Call 217: yeas 8, nays 39 (Senate) - 2026-02-23: Amendment #5 (Raatz) prevailed; voice vote (Senate) - 2026-02-19: Committee report: do pass, adopted (Senate) - 2026-02-12: Committee report: amend do pass adopted; reassigned to Committee on Appropriations (Senate) - 2026-02-03: Referred to the Senate (House) - 2026-02-03: First reading: referred to Committee on Education and Career Development (Senate) - 2026-02-02: Senate sponsors: Senators Raatz, Johnson T (House) - 2026-02-02: Third reading: passed; Roll Call 198: yeas 68, nays 30 (House) - 2026-01-29: Amendment #8 (Smith V) failed; Roll Call 164: yeas 24, nays 63 (House) - 2026-01-29: Amendment #6 (Smith V) failed; Roll Call 163: yeas 25, nays 62 (House) - 2026-01-29: Second reading: amended, ordered engrossed (House) - 2026-01-29: Amendment #9 (Bartlett) failed; Roll Call 162: yeas 26, nays 60 (House) - 2026-01-29: Amendment #2 (DeLaney) failed; Roll Call 161: yeas 28, nays 60 (House) - 2026-01-29: Amendment #10 (Behning) prevailed; voice vote (House) - 2026-01-27: Committee report: amend do pass, adopted (House) - 2026-01-22: Recommitted to Committee on Ways and Means pursuant to House Rule 126.3 (House) - 2026-01-22: Committee report: amend do pass, adopted (House) - 2026-01-08: First reading: referred to Committee on Education (House) - 2026-01-08: Authored by Representative Behning (House) - 2026-01-08: Coauthored by Representative McGuire (House) ## Bill text - Engrossed House Bill (H): [PDF](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.07.ENGS?format=pdf) - Engrossed House Bill (S): [PDF](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.04.ENGH?format=pdf) - Enrolled House Bill (H): [PDF](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.08.ENRS?format=pdf) - House Bill (H): [PDF](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.02.COMH?format=pdf), [PDF](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.03.COMH?format=pdf) - House Bill (S): [PDF](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.05.COMS?format=pdf), [PDF](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.06.COMS?format=pdf) - Introduced House Bill (H): [PDF](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.01.INTR?format=pdf) ## Related bills - HB 1424: Farm and homestead food sales. (signed) - HB 1406: Tax and fiscal matters. (signed) - HB 1266: Department of education and education matters. (signed) - HB 1277: Health and human services matters. (signed) - HB 1210: Department of local government finance. (signed) - HB 1249: Various criminal law matters. (signed) ## Sources - [Engrossed House Bill (H) (PDF)](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.07.ENGS?format=pdf) - [Engrossed House Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.04.ENGH?format=pdf) - [Enrolled House Bill (H) (PDF)](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.08.ENRS?format=pdf) - [House Bill (H) (PDF)](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.02.COMH?format=pdf) - [House Bill (H) (PDF)](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.03.COMH?format=pdf) - [House Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.05.COMS?format=pdf) - [House Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.06.COMS?format=pdf) - [Introduced House Bill (H) (PDF)](https://api.iga.in.gov/2026/bills/HB1423/versions/HB1423.01.INTR?format=pdf) ## Related - [HB 1424: Farm and homestead food sales.](https://policyrisk.com/state-bill/IN-HB1424-2026) - [HB 1406: Tax and fiscal matters.](https://policyrisk.com/state-bill/IN-HB1406-2026) - [HB 1266: Department of education and education matters.](https://policyrisk.com/state-bill/IN-HB1266-2026) - [HB 1277: Health and human services matters.](https://policyrisk.com/state-bill/IN-HB1277-2026) - [HB 1210: Department of local government finance.](https://policyrisk.com/state-bill/IN-HB1210-2026) - [HB 1249: Various criminal law matters.](https://policyrisk.com/state-bill/IN-HB1249-2026) - [Indiana bills](https://policyrisk.com/states/indiana/bills) - [Indiana state hub](https://policyrisk.com/states/indiana) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/IN-HB1423-2026 (as of 2026-11-01).