IndianaSB 239Second Regular Session 124th General Assembly (2026)SenateWALLET

Various education matters.

Sponsored By: Linda Rogers (Republican)

Signed by Governor

Summary

Requires the department of education (department) to: (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 on the department's website. Provides that, in addition to conditions established in current law to convert an existing public elementary or secondary school, an existing public elementary or secondary school may be converted into a charter school if certain other conditions apply. Allows, if the conditions are met, the governing body of a school corporation to: (1) convert more than one existing public elementary or secondary school within the school corporation; and (2) operate two or more conversion charter schools under a single charter. Allows participating innovation network charter schools to enter into an agreement with more than one school corporation. Establishes the following for or with regard to participating innovation network charter schools that entered into an agreement with more than one school corporation: (1) Requirements regarding the location of a participating innovation network charter school. (2) Terms of a participating innovation network charter school agreement. (3) Duties of the department. Amends certain requirements and procedures that apply to the closure and transfer of covered school buildings. Provides that a lease or sale of a covered school building to a charter school or state educational institution includes certain assets. Requires parental notification if a school determines a student is at risk of not achieving grade level proficiency in mathematics.

education and career developmentappropriationsthe houseeducation

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 5 benefits, 0 costs, 7 mixed.

Caps on school referendum property taxes

The law caps qualifying school operating referendum levies for taxes due in 2024 and 2025. For 2024, the cap is the lower of 103% of the 2023 maximum levy or the otherwise-allowed 2024 maximum. For 2025, the lower limit applies: the otherwise-allowed maximum or the prior-year maximum adjusted by an enrollment formula. That formula includes specified innovation network charter students and a 1.5 growth factor; its final adjustment factor cannot exceed 1.12. Tax rates must fall as needed to meet the caps. These limits cover levies approved before January 1, 2023, except those approved during a distressed-political-subdivision designation. They exclude levies approved during 2023–2024 and do not apply to other tax years.

Extra math help for struggling students

Starting in the 2026–2027 school year, schools must provide extra math help to identified students in kindergarten through grade 8. A state-approved screener or statewide assessment must identify the student as at risk of missing grade-level math skills. Help must match the student's needs, use evidence-based methods, and support regular classroom lessons. Schools must keep checking progress and using the results to guide help. Parents must receive notice within 15 days after the school identifies the risk.

Local admission priority at charter schools

Beginning July 1, 2027, the law expands who counts as local for admission at certain participating innovation network charter schools. This applies to schools without a defined attendance area that limit new admissions to keep room for local students. Depending on the school's type, local students include those in its school corporation or any corporation with an agreement. Being in this group does not guarantee admission.

Students get employer incentive information online

The state education department must post employers offering guaranteed incentives to high school students who earn the honors employment plus seal. The first online list is due July 1, 2027, with updates each July 1 afterward. The law does not set incentive amounts or terms.

Charter schools receive protected student funding

Beginning July 1, 2027, multi-board agreements require districts to pass through at least 100% of state support for resident students attending the participating charter school, less an allowed fee. For agreements entered into or renewed after June 30, 2027, that fee cannot exceed 1% of this support. The state calculates separate charter-school support for students living outside every district with an agreement, in addition to district-provided support. After state notice, the resident students' test results count in their district's results for school years starting afterward. District enrollment calculations include only eligible resident students attending the charter school.

Districts can reclaim underused charter buildings

A district can petition the state education department to recover a covered charter building, but not during the first five years after purchase or initial lease. The building's in-person enrollment must be below 50% of classroom capacity and at least 10% below five school years earlier. The request must fit the district's strategic plan, and the charter school must receive written notice before filing. Capacity uses the changed building layout if the charter school reconfigured it. Before taking the building back, the district must pay for capital improvements minus depreciation.

New shared agreements for charter schools

Beginning July 1, 2027, organizers can make agreements with multiple school boards for participating innovation network charter schools. Boards can agree to remake an eligible school or start one at a board-selected site, including a vacant school building. Agreements must cover performance, renewal, property-tax sharing, enrollment, and discipline. The organizer and board must notify the state education department within 30 days. The agreement cannot change without the organizer's written approval.

Public schools gain charter conversion options

A school board can vote to convert an existing public school into a charter school, subject to authorizer approval. The school corporation cannot authorize its own converted school; a board also cannot authorize a school while holding a covered agreement with it. The organizer can be the school corporation or a nonprofit it creates. That nonprofit must be incorporated or registered in Indiana, keep federal tax-exempt status, and have an independent board. With authorizer approval, one charter can cover several listed schools, each subject to its performance and accountability terms.

School building transfers gain stronger enforcement

Required transfers of available school buildings give charter schools or state educational institutions a $1 purchase or $1 yearly lease. Covered transfers also include building fixtures, adjacent parking lots, and playgrounds. After notice of a final, unappealable selection decision, the district must finish the transaction within 30 days, down from 90. The selected school or institution can sue over missed deadlines. Courts can order compliance and award $10,000 for each day beyond the 30-day deadline.

School closure rules allow nearby alternatives

Beginning July 1, 2027, covered districts can satisfy a school-closure capacity test using room in one or more other buildings. Those buildings must hold the affected students and be within a 20-minute car or bus trip from the building considered for closure. Districts have 30 days, down from 60, to respond to covered closure or building-availability petitions. Parties also have 30 days, down from 60, to reply when a district contests a petition. The law separately exempts specified state board building-transfer determinations from the legal article addressed by that exemption.

Transferred school buildings face return rules

A buyer that no longer plans the required educational use must first offer the covered building back to the selling district. If the district declines and a third-party sale or transfer follows, the buyer owes the district the gain minus adjusted basis, including improvement costs. A covered building also returns if a charter school fails to use it for classroom instruction within three years of acquisition. The same deadline applies to academic use by a state educational institution. If ongoing renovations prevent use, the three-year clock starts when the buyer gets an occupancy permit.

New student counts shape school funding

Beginning July 1, 2027, the law revises the complexity index used for school funding and accountability. The index uses measures including food or cash assistance and foster-care status. For districts with participating innovation network charter agreements, the formula separately accounts for enrollment and eligible students in covered schools. It also updates a special rule for participating charter schools established before January 1, 2016, whose index exceeds their contracting district's. These changes can shift funding allocations and accountability ratings.

Sponsors & Cosponsors

Sponsor

  • Linda Rogers

    Republican • Senate

Cosponsors

  • Blake Doriot

    Republican • Senate

  • Brian Buchanan

    Republican • Senate

  • Jake Teshka

    Republican • House

  • Jeff Raatz

    Republican • Senate

  • Julie McGuire

    Republican • House

  • Robert Behning

    Republican • House

  • Stacey Donato

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 244 • No: 180

House vote • 2/27/2026

Rules Suspended. Conference Committee Report 1: adopted by the House

Yes: 65 • No: 29

Senate vote • 2/27/2026

Rules Suspended. Conference Committee Report 1: adopted by the Senate

Yes: 31 • No: 16

House vote • 2/24/2026

Third reading: passed

Yes: 66 • No: 31

House vote • 2/23/2026

Amendment #1 (DeLaney) failed

Yes: 43 • No: 51

Senate vote • 1/28/2026

Third reading: passed

Yes: 30 • No: 18

Senate vote • 1/26/2026

Amendment #1 (Qaddoura) failed

Yes: 9 • No: 35

Actions Timeline

  1. Signed by the Governor

    3/12/2026Senate
  2. Public Law 151

    3/12/2026Senate
  3. Signed by the President Pro Tempore

    3/5/2026Senate
  4. Signed by the Speaker

    3/3/2026House
  5. Signed by the President of the Senate

    3/2/2026Senate
  6. Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 431: yeas 65, nays 29

    2/27/2026House
  7. Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 330: yeas 31, nays 16

    2/27/2026Senate
  8. CCR # 1 filed in the House

    2/27/2026House
  9. CCR # 1 filed in the Senate

    2/27/2026Senate
  10. Representative Behning added as conferee

    2/27/2026House
  11. Representative Behning removed as advisor

    2/27/2026House
  12. Representative DeLaney removed as conferee

    2/27/2026House
  13. Senator Buchanan added as conferee

    2/27/2026Senate
  14. Senator Qaddoura removed as conferee

    2/27/2026Senate
  15. Returned to the Senate with amendments

    2/25/2026House
  16. Senate dissented from House amendments

    2/25/2026Senate
  17. House conferees appointed: Teshka, DeLaney

    2/25/2026House
  18. House advisors appointed: Behning, Payne, Klinker, Pfaff, Smith V

    2/25/2026House
  19. Senate conferees appointed: Rogers, Qaddoura

    2/25/2026Senate
  20. Motion to dissent filed

    2/25/2026Senate
  21. Senate advisors appointed: Donato, Ford J.D., Raatz, Doriot

    2/25/2026Senate
  22. Third reading: passed; Roll Call 350: yeas 66, nays 31

    2/24/2026House
  23. Amendment #2 (Behning) prevailed; voice vote

    2/23/2026House
  24. Amendment #1 (DeLaney) failed; Roll Call 321: yeas 43, nays 51

    2/23/2026House
  25. Second reading: amended, ordered engrossed

    2/23/2026House

Bill Text

  • Engrossed Senate Bill (H)

  • Engrossed Senate Bill (S)

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

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