Indiana § 20-25-16-1 - Powers of board

Full text of Indiana Indiana Code § 20-25-16-1 — Powers of board, with citation guidance and answers to common questions.

§ 20-25-16-1. Powers of board

Sec. 1. To provide the board with the necessary flexibility and resources to carry out this article, the following apply:

(1) The board may:

(A) eliminate or modify existing policies;

(B) create new policies; and

subject to this article and the plan developed under IC 20-25-10.

(2) IC 20-29 applies to the school city.

(3) Notwithstanding any other law, a school city may lease school transportation equipment to others for nonschool use when the equipment is not in use for a school city purpose.

[Pre-2007 Recodification Citation: 20-3.1-15-1.]

As added by P.L.1-2005, SEC.9. Amended by P.L.2-2006, SEC.116; P.L.73-2011, SEC.7; P.L.5-2015, SEC.46; P.L.244-2017, SEC.41.

IC 20-25-17Chapter 17. ExpiredAs added by P.L.232-2025, SEC.7. Expired 3-30-2026 by P.L.232-2025, SEC.7.

IC 20-25.3ARTICLE 25.3. INDIANAPOLIS PUBLIC EDUCATION CORPORATION

Ch. 1.Scope of Authority Ch. 2.Definitions Ch. 3.Indianapolis Public Education Corporation Ch. 4.General Duties and Powers Ch. 5.Financial and Administrative Powers and Duties Ch. 6.Indianapolis Public Education Corporation Operations Fund Ch. 7.Indianapolis Public Education Corporation Debt Service Fund

IC 20-25.3-1Chapter 1. Scope of Authority

20-25.3-1-1Purpose of corporation 20-25.3-1-2Construction

IC 20-25.3-1-1Purpose of corporation Sec. 1. The Indianapolis public education corporation exists and shall operate for the public purpose of establishing a unified student transportation, school property, and school performance system within the geographic boundaries of the school city that maximizes the efficient use of taxpayer provided resources, respects the decision making of individual public schools and the school city, and creates the best conditions for student learning and success.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-1-2Construction Sec. 2. This article shall be liberally construed to effect the purposes of this article. If any other law or rule is inconsistent with this article, this article is controlling as to the administration and management of school property, transportation, and school performance within the geographic boundaries of the school city undertaken under this article.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-2Chapter 2. Definitions

20-25.3-2-1Application of definitions 20-25.3-2-2"Board of school commissioners" 20-25.3-2-3"Corporation" 20-25.3-2-4"Corporation board" 20-25.3-2-5"Mayor" 20-25.3-2-6"Participating school" 20-25.3-2-7"School property"

IC 20-25.3-2-1Application of definitions Sec. 1. The definitions in:

(1) this chapter; and

(2) except as provided in section 2 of this chapter, IC 20-25-2;

apply throughout this article.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-2-2"Board of school commissioners" Sec. 2. "Board of school commissioners" refers to the board of school commissioners established by IC 20-25-3-1.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-2-3"Corporation" Sec. 3. "Corporation" refers to the Indianapolis public education corporation established by IC 20-25.3-3-1.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-2-4"Corporation board" Sec. 4. "Corporation board" refers to the Indianapolis public education corporation board appointed under IC 20-25.3-3-2.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-2-5"Mayor" Sec. 5. "Mayor" refers to the mayor of a consolidated city.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-2-6"Participating school" Sec. 6. (a) "Participating school" means the following schools:

(1) A school maintained by the school city.

(2) The following that are located within the geographic boundaries of the school city:

(A) A participating innovation network school.

(B) A participating innovation network charter school.

(b) The term does not include the following:

(1) An adult high school (as defined in IC 20-24-1-2.3).

(2) A virtual charter school (as defined in IC 20-24-1-10).

As added by P.L.101-2026, SEC.12.

IC 20-25.3-2-7"School property" Sec. 7. "School property" means a building or real property that is:

(1) leased or owned by the school city or a participating school; and

(2) located within the geographic boundaries of the school city.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3Chapter 3. Indianapolis Public Education Corporation

20-25.3-3-1Corporation established 20-25.3-3-2Corporation board; appointment of members; qualifications 20-25.3-3-3Term of office; vacancy; removal for cause 20-25.3-3-4Quorum 20-25.3-3-5Corporation board meetings 20-25.3-3-6Members not entitled to salary, per diem, or reimbursements or compensation 20-25.3-3-7Corporation board's documents; recording votes 20-25.3-3-8Adopt rules and procedures; suspend rules of procedures; limitations; powers 20-25.3-3-9Exercise of corporation executive and legislative powers 20-25.3-3-10Executive director; appointment; duties; salaries 20-25.3-3-11Initial appointment of members

IC 20-25.3-3-1Corporation established Sec. 1. There is established in a county containing a consolidated city for the public purposes set forth in this article a distinct municipal corporation to be known as the Indianapolis Public Education Corporation.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3-2Corporation board; appointment of members; qualifications Sec. 2. (a) The corporation is governed by the Indianapolis public education corporation board appointed under this section.

(b) The corporation board is comprised of the following nine (9) members:

(1) Three (3) members appointed by the mayor who:

(A) are leaders of participating innovation network charter schools or charter schools located within the geographic boundaries of the school city; and

(B) are not members of a charter school board of a charter school described in clause (A) who were appointed by the mayor.

(2) Three (3) members appointed by the mayor who are members of the board of school commissioners.

(3) Three (3) members appointed by the mayor who have:

(A) expertise in management, capital planning, facilities, transportation, or logistics; or

(B) experience in working with vulnerable student populations and communities.

(d) The mayor shall appoint one (1) of the members of the corporation board as chairperson of the corporation board.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3-3Term of office; vacancy; removal for cause Sec. 3. (a) The term of office of an appointed member of the corporation board is four (4) years. The member's term begins on July 1 after the appointment.

(b) Each member holds office for the term of appointment and continues to serve after expiration of the appointment until a successor is appointed and qualified. A member is eligible for reappointment.

(d) A vacancy occurs if a member dies, resigns, changes residence of the county, or ceases to be a:

(1) leader of a participating innovation network charter school or charter school located within the geographic boundaries of the school city; or

(2) member of the board of commissioners.

(e) A member of the corporation board may be removed for cause by the mayor.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3-4Quorum Sec. 4. (a) A majority of the corporation board members constitutes a quorum for a meeting. The corporation board may act by an affirmative vote of a majority of the corporation board.

(b) A vacancy in the membership of the corporation board does not impair the right of a quorum to exercise all rights and perform all duties of the corporation board.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3-5Corporation board meetings Sec. 5. Meetings of the members of the corporation board shall be held at the call of the chairperson. The members shall meet at least once every three (3) months to attend to the business of the corporation.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3-6Members not entitled to salary, per diem, or reimbursements or compensation Sec. 6. The members of the corporation board are not entitled to any salary, per diem, or other reimbursements or compensation to serve on the corporation board.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3-7Corporation board's documents; recording votes Sec. 7. The corporation board shall keep the corporation board's documents in the office of the corporation or in an electronic format. The corporation board shall record the aye and nay vote on the final passage of any item of business and on any other item if two (2) corporation board members request that the votes be recorded by ayes and nays.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3-8Adopt rules and procedures; suspend rules of procedures; limitations; powers Sec. 8. (a) The corporation board shall adopt rules of procedure for corporation board meetings. The corporation board may suspend the rules of procedure by unanimous vote of the members present at the meeting. The corporation board shall not suspend the rules of procedure beyond the duration of the meeting at which the suspension of rules occurs.

(b) The corporation board may exercise the powers to supervise internal affairs common to municipal legislative and administrative bodies.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3-9Exercise of corporation executive and legislative powers Sec. 9. The corporation board shall exercise the executive and legislative powers of the corporation.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3-10Executive director; appointment; duties; salaries Sec. 10. (a) The corporation board shall appoint an individual recommended by the mayor as the executive director of the corporation.

(b) The executive director:

(1) serves at the pleasure of the corporation board; and

(2) shall do the following:

(A) Administer, manage, and direct the affairs and activities of the corporation and any employees of the corporation in accordance with the policies and under the control and direction of the members of the corporation board.

(B) Approve all allowable expenses of the corporation or of any employee or consultant, and expenses incidental to the operation of the corporation.

(C) Perform other duties as may be directed by the members of the corporation board in carrying out the purposes of this article.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-3-11Initial appointment of members Sec. 11. (a) Notwithstanding section 3 of this chapter, the following apply to the members initially appointed to the corporation board:

(1) The mayor shall appoint members to the corporation board not later than March 31, 2026.

(2) The term of each member begins on the date that the member is appointed under subdivision (1).

(3) The terms of the members are as follows:

(A) One (1) member appointed under section 2(b)(1), 2(b)(2), and 2(b)(3) of this chapter shall each serve until July 1, 2028.

(B) One (1) member:

(i) appointed under section 2(b)(1), 2(b)(2), and 2(b)(3) of this chapter; and

(ii) who is not a member described in clause (A) or (C);

shall each serve until July 1, 2029.

(i) appointed under section 2(b)(1), 2(b)(2), and 2(b)(3) of this chapter; and

(ii) who is not a member described in clause (A) or (B);

shall each serve until July 1, 2030.

(b) This section expires January 1, 2031.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-4Chapter 4. General Duties and Powers

20-25.3-4-1Corporation powers 20-25.3-4-2Corporation powers in carrying out purpose; duties; feasibility study; report 20-25.3-4-3Single school performance framework; requirements; closure of participating school; appeal; report 20-25.3-4-4Advisory committee 20-25.3-4-5Corporation board duties; unified transportation plan; submission of progress report and plan; implementation 20-25.3-4-6Requirements of school city and participating schools; option to opt out of participating in management and control of school property 20-25.3-4-7Subject to required audits 20-25.3-4-8Applicability of laws governing state agencies 20-25.3-4-9Construction; contracts; exceptions

IC 20-25.3-4-1Corporation powers Sec. 1. The corporation, in its corporate name, may do the following:

(1) Sue and be sued in a court of competent jurisdiction.

(2) Enter into contracts.

(3) Acquire and dispose of real, personal, and mixed property by deed, purchase, gift, grant, devise, lease, condemnation, or otherwise.

(4) Make and adopt appropriate regulations, orders, rules, and resolutions.

(5) Do all things reasonable or necessary to carry out the work and perform the corporation's duties under this chapter.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-4-2Corporation powers in carrying out purpose; duties; feasibility study; report Sec. 2. (a) In carrying out the purpose of the corporation, the corporation board is granted all powers necessary or appropriate to do the following:

(1) Beginning with the 2028-2029 school year and subject to section 6(b) of this chapter, control the management and operation of school property.

(2) Establish, in collaboration with the nonprofit organization leading the transportation and centralized school facilities pilot program in Marion County and the school city, a unified transportation plan in accordance with section 5 of this chapter and, beginning with the 2028-2029 school year, lead and oversee the provision of transportation of all students to and from participating schools within the geographic boundaries of the school city.

(3) Develop a single school performance framework in accordance with section 3 of this chapter that applies to all participating schools.

(4) Manage a unified enrollment system applicable to all participating school students.

(5) Ensure that, to the extent possible, school property is provided and made available to all participating schools that do not opt out under section 6(b) of this chapter on an equitable basis.

(6) Develop and implement a formula that provides for the fair and equitable distribution of property taxes and other funds to the school city and participating schools.

(7) Track qualitative and quantitative data to monitor outcomes and publicly report data in a manner prescribed by the mayor.

(8) Make, execute, and enforce contracts and all other instruments necessary, convenient, or desirable for the purposes of the corporation, including entering into a contract with, as applicable, the school city and each participating school regarding:

(A) the management and operation of school property;

(B) the provision of transportation of all students to and from participating schools within the geographic boundaries of the school city; and

(9) Acquire, construct, erect, maintain, hold, and contract for construction, erection, or maintenance of real estate, real estate improvements, or an interest in real estate or real estate improvements, as the corporation board considers necessary for school purposes, including buildings, parts of buildings, additions to buildings, rooms, gymnasiums, auditoriums, playgrounds, playing and athletic fields, facilities for physical training, buildings for administrative, office, warehouse, repair activities, or housing school owned buses, landscaping, walks, drives, parking areas, roadways, easements and facilities for power, sewer, water, roadway, access, storm and surface water, drinking water, gas, electricity, other utilities and similar purposes, by purchase, either outright for cash (or under conditional sales or purchase money contracts providing for a retention of a security interest by the seller until payment is made or by notes where the contract, security retention, or note is permitted by applicable law), by exchange, by gift, by devise, by eminent domain, or by lease with or without option to purchase, or by lease under IC 20-47-2 or IC 20-47-3.

(10) Repair, remodel, remove, or demolish, or to contract for the repair, remodeling, removal, or demolition of the real estate, real estate improvements, or interest in the real estate or real estate improvements that the corporation owns, as the corporation board considers necessary for school purposes.

(11) Acquire personal property or an interest in personal property as the corporation board considers necessary for school purposes, including buses, motor vehicles, equipment, apparatus, and appliances, either by cash purchase or under conditional sales or purchase money contracts providing for a security interest by the seller until payment is made or by notes where the contract, security, retention, or note is permitted by applicable law, by gift, by devise, by loan, or by lease with or without option to purchase and to repair, remodel, remove, relocate, and demolish the personal property. All purchases and contracts specified under the powers authorized under subdivisions (9) and (10) and this subdivision are subject solely to applicable law relating to purchases and contracting by municipal corporations in general and to the supervisory control of state agencies as provided in section 8 of this chapter.

(12) To sell or exchange real or personal property or interest in real or personal property that, in the opinion of the corporation board, is not necessary for school purposes to demolish or otherwise dispose of the property if, in the opinion of the corporation board, the property is not necessary for school purposes and is worthless, and to pay the expenses for the demolition or disposition.

(13) Contract with or employ staff to execute the corporation's duties.

(14) Fix and pay the salaries of the executive director and any employees of the corporation.

(15) Maintain an office or offices at a place or places within the geographic boundaries of the school city as the corporation board may designate.

(16) To make budgets, to appropriate funds, and to disburse the money, as applicable, of the corporation in accordance with the formula established under subdivision (6). Subject to subsection (c), to borrow money against current tax collections and otherwise to borrow money, in accordance with IC 20-48-1. Borrowing by the corporation, when considered in addition to indebtedness of the school city, may not equal an aggregate amount that exceeds the debt limitation described by IC 36-1-15-6 for the school city.

(17) Procure insurance against any loss in connection with its property and other assets, including loans and loan notes in amounts and from insurers as the corporation board may consider advisable.

(18) To make all applications, to enter into all contracts, and to sign all documents necessary for the receipt of aid, money, or property from the state, the federal government, or from any other source.

(19) To defend a member of the corporation board or any employee of the corporation in any suit arising out of the performance of the member's or employee's duties for or employment with, the corporation, if the corporation board by resolution determined that the action was taken in good faith. To save any member or employee harmless from any liability, cost, or damage in connection with the performance, including the payment of legal fees, except where the liability, cost, or damage is predicated on or arises out of the bad faith of the member or employee, or is a claim or judgment based on the member's or employee's malfeasance as a member or in employment.

(20) To prepare, make, enforce, amend, or repeal rules, regulations, orders, and procedures:

(A) to carry out the purposes of the corporation; and

(B) that may be designated by an appropriate title such as "policy handbook", "bylaws", or "rules and regulations".

(21) Regularly conduct assessments of school property.

(22) To exercise any other power and make any expenditure in carrying out the general powers and purposes provided in this article or in carrying out the powers delineated in this section which is reasonable from a business or educational standpoint in carrying out purposes of the corporation, including the acquisition of property or the employment or contracting for services, even though the power or expenditure is not specifically set out in this chapter.

(b) The corporation board shall determine the percentage of property tax revenue that the county auditor is required to distribute to the corporation under IC 20-46-8-11.2(j) or IC 20-46-8-12(m), as applicable. The amount determined under this subsection may not exceed three percent (3%) of the total amount of revenue to be distributed under IC 20-46-8-11.2(f), IC 20-46-8-12(h), or IC 20-46-8-12(l), as applicable, to the school city and to each charter school described in IC 20-46-8-12(m)(2) for each settlement period described in IC 6-1.1-27-1.

(c) The public education corporation may issue bonds, enter into leases, or otherwise incur indebtedness after March 31, 2026, and before July 1, 2027, only if the local board of school commissioners established by IC 20-25-3-1 first adopts a resolution approving the issuance of the bonds, entering into the lease, or incurring of indebtedness.

(d) The corporation board shall, in collaboration with the school city and the nonprofit organization leading the transportation and centralized school facilities pilot program in Marion County, do the following:

(1) Complete a feasibility study to determine the best approach for managing school property.

(2) Not later than November 30, 2026, submit to the legislative council in an electronic format under IC 5-14-6 a report that includes information regarding the corporation board's progress in completing the feasibility study under subdivision (1) and report under subdivision (3).

(3) Not later than November 30, 2027, prepare and submit a report regarding the feasibility study under subdivision (1) to the legislative council in an electronic format under IC 5-14-6.

This subsection expires July 1, 2028.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-4-3Single school performance framework; requirements; closure of participating school; appeal; report Sec. 3. (a) The corporation board shall, in collaboration with the school city and authorizers of charter schools described in IC 20-25.3-2-6, create a single school performance framework that applies beginning with the 2028-2029 school year to all participating schools.

(b) The school performance framework must:

(1) set clear expectation for school performance;

(2) be based on multiple measures and metrics, including:

(A) academic performance measures, including the performance assessment results under IC 20-31-8;

(B) student assessment outcomes;

(D) student enrollment;

(E) physical condition of school property, including deferred maintenance;

(F) short and long term financial health measures;

(G) organizational health and governance measures;

(H) replication of instructional models that are achieving the best results for students; and

(I) any additional measures relevant to student success as determined by the corporation board; and

(3) include both of the following:

(A) A process to close chronically low performing participating schools.

(B) A process to close inefficient school buildings.

(1) consult with the department; and

(2) hold a public hearing within the geographic boundaries of the school city;

regarding the proposed closure of the participating school.

(d) Except as provided under subsection (e), a participating school may not be closed as described in subsection (b)(3)(A) unless the following occurs:

(1) If the participating school is a charter school, the authorizer of the participating school approves the closure.

(2) If the participating school is not a charter school, the board of school commissioners approves the closure.

(e) If an authorizer or the board of school commissioners, whichever is applicable, does not approve the closure of a participating school under subsection (d), the corporation board may appeal to the state board to request that the participating school be closed. Not later than sixty (60) days after receiving an appeal from the corporation board under this subsection, the state board shall approve or decline the closure of the participating school.

(f) The corporation board shall submit to the legislative council in an electronic format under IC 5-14-6 the following:

(1) Not later than August 1, 2026, a report that includes information regarding the corporation board's progress in creating a single school performance framework under this section, including information related to the progress on the plan to close inefficient school buildings.

(2) Not later than November 30, 2027, the single school performance framework created under this section.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-4-4Advisory committee Sec. 4. The corporation board may establish an advisory committee to assist the corporation board in creating and implementing the school performance framework described in section 3 of this chapter.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-4-5Corporation board duties; unified transportation plan; submission of progress report and plan; implementation Sec. 5. (a) The corporation board shall do the following:

(1) Establish a unified transportation plan regarding the provision of transportation of all students to and from participating schools within the geographic boundaries of the school city.

(2) Include in the unified transportation plan the amount needed to fully fund the plan.

(3) Not later than November 30, 2026, submit to the legislative council in an electronic format under IC 5-14-6 a report that includes information regarding the corporation board's progress in completing the unified transportation plan.

(4) Not later than November 30, 2027, submit the unified transportation plan to the legislative council in an electronic format under IC 5-14-6.

(b) The corporation board shall implement the unified transportation plan beginning in the 2028-2029 school year.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-4-6Requirements of school city and participating schools; option to opt out of participating in management and control of school property Sec. 6. (a) The school city and all participating schools:

(1) are required to participate in the unified transportation plan implemented by the corporation board;

(2) shall enter into contracts with the corporation board; and

(3) shall comply with any applicable regulations, orders, rules, and resolutions adopted by the corporation board.

(b) A participating school that is a charter school, including a participating innovation network charter school, or the school city, may elect to opt out of participation in the management and control of school property by the corporation board. If a participating school or school city elects to opt out under this subsection, the:

(1) corporation board may not manage or control school property owned or leased by the participating school or school city; and

(2) participating school or school city may not receive any money that is attributable to the following:

(A) A debt service levy under IC 20-46-7.

(B) A levy imposed under IC 6-1.1-20 for controlled projects.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-4-7Subject to required audits Sec. 7. The corporation is subject to required audits by the state board of accounts under IC 5-11-1-9.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-4-8Applicability of laws governing state agencies Sec. 8. All powers delegated to the corporation under this chapter are subject to all applicable laws subjecting a school corporation to regulation by a state agency, including the secretary of education, state board of accounts, state police department, fire prevention and building safety commission, department of local government finance, environmental rules board, state school bus committee, Indiana department of health, and any local governmental agency to which the state has been delegated a specific authority in matters other than educational matters and other than finance, including plan commissions, zoning boards, and boards concerned with health and safety.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-4-9Construction; contracts; exceptions Sec. 9. (a) Except as provided in subsection (c) and subject to subsection (b), nothing in this article may be construed to impair a contract that was entered into before the effective date of this article. However, after the effective date of this article, the school city or a participating school may not enter into, renew, or extend a contract that is not in compliance with:

(1) this article;

(2) a contract entered into by the school city or participating school under this article; or

(3) any regulation, order, rule, or resolution adopted by the corporation board.

(b) Notwithstanding subsection (a), the school city may continue to enter into, renew, or extend any contract with respect to the proceeds of bonds, leases, and other obligations issued or entered into by the school city before April 1, 2026, pursuant to IC 6-1.1-20, IC 20-48-1, IC 20-47-2, and IC 20-47-3. The corporation may not impair any such contracts with respect to the existing proceeds.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-5Chapter 5. Financial and Administrative Powers and Duties

20-25.3-5-1Debt, liability, or obligation of school city, participating school, or corporation 20-25.3-5-2Assumption of powers and duties by corporation; bonds and other obligation 20-25.3-5-3Powers and duties related to fixing and reviewing budgets, tax rates, and tax levies 20-25.3-5-4Corporation assumes controlled project tax levy powers and duties of school city 20-25.3-5-5Corporation assumes powers and duties of school city; operating referendum tax levy; distribution or use of revenue 20-25.3-5-6Corporation assumes powers and duties of school city; imposition of debt service levy; use and deposit of revenue 20-25.3-5-7Corporation assumes powers and duties of school city; operations fund property tax levy; distribution of revenue 20-25.3-5-8Corporation assumes powers and duties of school city; school safety referendum tax levy; distribution of revenue

IC 20-25.3-5-1Debt, liability, or obligation of school city, participating school, or corporation Sec. 1. (a) Any indebtedness, liabilities, and obligations incurred before April 1, 2026, by the school city or any participating school, remain the debt, liability, or obligation of the school city or participating school and do not become the debt, liability, or obligation of and may not be assumed by the corporation. The rights of the bondholders remain unchanged.

(b) Any indebtedness, liabilities, and obligations incurred after March 31, 2026, by the corporation are the debt, liability, or obligation of the corporation.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-5-2Assumption of powers and duties by corporation; bonds and other obligation Sec. 2. After March 31, 2026, the school city may not take any action under the procedures set forth in IC 5-1 and instead the corporation shall assume the powers and duties of the school city under IC 5-1.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-5-3Powers and duties related to fixing and reviewing budgets, tax rates, and tax levies Sec. 3. After March 31, 2026, the corporation has all the powers and shall perform all the duties assigned to the school city under IC 6-1.1-17 related to the fixing and reviewing of budgets, tax rates, and tax levies. The school city shall provide records and information as necessary for the corporation to carry out its duties.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-5-4Corporation assumes controlled project tax levy powers and duties of school city Sec. 4. (a) Except as provided in subsection (b), after March 31, 2026, the school city may not take any action under the procedures set forth in IC 6-1.1-20 and instead the corporation shall assume the powers and duties of the school city under IC 6-1.1-20 in the territory of the school city. Property tax revenue received from a referendum controlled project tax levy that is approved by the voters after March 31, 2026, shall be distributed to the corporation in the manner provided under IC 6-1.1-20.

(b) A referendum controlled project tax levy that is approved by the voters before April 1, 2026, shall continue to be imposed after March 31, 2026, and the school city shall continue to use the revenue from the referendum controlled project tax levy to pay debt service on the same terms, for the same period of time, and for the same purposes for which it was originally approved by the voters.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-5-5Corporation assumes powers and duties of school city; operating referendum tax levy; distribution or use of revenue Sec. 5. (a) Except as provided in subsections (b) and (c), after March 31, 2026, the school city may not take any action under the procedures set forth in IC 20-46-1 and instead the corporation shall assume the powers and duties of the school city under IC 20-46-1 in the territory of the school city.

(b) Notwithstanding subsection (a), property tax revenue received from an operating referendum tax levy that is approved by the voters after March 31, 2026, shall be distributed to the school city and applicable charter schools in the manner provided under IC 20-46-1.

(c) An operating referendum tax levy that is approved by the voters before April 1, 2026, shall continue to be imposed after March 31, 2026, through the end of the term and the school city shall continue to use the revenue from the operating referendum tax levy for the same purposes for which it was originally approved by the voters through the end of the term of the referendum.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-5-6Corporation assumes powers and duties of school city; imposition of debt service levy; use and deposit of revenue Sec. 6. (a) Subject to subsection (b), beginning July 1, 2026, the corporation shall assume the powers and duties of the school city under IC 20-46-7 with respect to imposition of a debt service levy. Beginning with the January 1, 2027, assessment date, and for each assessment date thereafter, the corporation shall impose both:

(1) an annual property tax levy in the territory of the school city sufficient to pay all obligations of the school city; and

(2) an annual property tax levy in the territory of the school city sufficient to pay all obligations of the corporation.

Property tax revenue received from the tax levies shall be used to pay outstanding debts and obligations in the manner set forth in subsection (b) and IC 20-46-7-0.5.

(b) Property tax revenue received from the debt service levy described in IC 20-46-7-0.5(a)(2)(A) that is imposed for the purpose of paying all obligations of the school city must be deposited in the school city's debt service fund established under IC 20-40-9 and may be used only to pay the obligations of the school city. The school city shall use the revenue from the debt service levy to pay debt service on the same terms, for the same period of time, and for the same purposes for which the obligation was initially authorized.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-5-7Corporation assumes powers and duties of school city; operations fund property tax levy; distribution of revenue Sec. 7. (a) Except as provided in subsection (b), beginning July 1, 2026, the corporation shall assume the powers and duties of the school city to impose a levy under IC 20-46-8. Beginning with the January 1, 2027, assessment date, and for each assessment date thereafter, the corporation shall impose an annual property tax levy in the territory of the school city.

(b) Notwithstanding subsection (a), property tax revenue received from a tax levy imposed under IC 20-46-8 for assessment dates after December 31, 2026, shall be distributed to the school city and applicable charter schools in the manner provided under IC 20-46-8.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-5-8Corporation assumes powers and duties of school city; school safety referendum tax levy; distribution of revenue Sec. 8. (a) Except as provided in subsection (b), after March 31, 2026, the school city may not take any action under the procedures set forth in IC 20-46-9 and instead the corporation shall assume the powers and duties of the school city under IC 20-46-9 in the territory of the school city.

(b) Notwithstanding subsection (a), property tax revenue received from a school safety referendum tax levy that is approved by the voters after March 31, 2026, shall be distributed to the school city and applicable charter schools in the manner provided under IC 20-46-9.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-6Chapter 6. Indianapolis Public Education Corporation Operations Fund

20-25.3-6-1Operations fund created 20-25.3-6-2Deposits in fund 20-25.3-6-3Expenditures; appropriation requirements 20-25.3-6-4Balance investment; retention 20-25.3-6-5Use of money in the fund

IC 20-25.3-6-1Operations fund created Sec. 1. The corporation shall create a corporation operations fund to be used by the corporation for the purposes of the corporation.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-6-2Deposits in fund Sec. 2. The corporation operations fund shall be used to deposit revenue received under IC 20-46-8-11.2(j) and IC 20-46-8-12(m).

As added by P.L.101-2026, SEC.12.

IC 20-25.3-6-3Expenditures; appropriation requirements Sec. 3. Expenditures from the corporation operations fund may be made only after appropriation in the annual budget or by an additional appropriation under IC 6-1.1-18-5.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-6-4Balance investment; retention Sec. 4. (a) Any balance in the corporation operations fund may be invested in the manner provided for investment of money by a political subdivision. The net proceeds from the investment become a part of the corporation operations fund.

(b) Any balance, or a part of the balance, remaining in the corporation operations fund at the end of a year may be retained in the corporation operations fund.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-6-5Use of money in the fund Sec. 5. The corporation may use money in the corporation operations fund to carry out the purposes of the corporation.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-7Chapter 7. Indianapolis Public Education Corporation Debt Service Fund

20-25.3-7-1"Debt service" 20-25.3-7-2"Fund" 20-25.3-7-3Debt service fund created 20-25.3-7-4Deposits in fund; use of money 20-25.3-7-5Restriction on use of money 20-25.3-7-6Allow lease rental obligations to be paid from fund; annual budget requirement

IC 20-25.3-7-1"Debt service" Sec. 1. As used in this chapter, "debt service" includes bonds and coupons, civil bond obligations, lease rental contracts, and interest cost on emergency and temporary loans.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-7-2"Fund" Sec. 2. As used in this chapter, "fund" refers to a debt service fund established under section 3 of this chapter.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-7-3Debt service fund created Sec. 3. The corporation shall establish a debt service fund for purposes of paying the obligations of the corporation.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-7-4Deposits in fund; use of money Sec. 4. (a) The debt service fund shall be used to deposit revenue received from the debt service levy imposed under IC 20-46-7 for the purpose of paying all obligations of the corporation.

(b) Money in the debt service fund may be used for payment of the following:

(1) All debt and other obligations arising out of funds borrowed or advanced for school buildings when purchased from the proceeds of a bond issue for capital construction.

(2) A lease to provide capital construction.

(3) Interest on emergency and temporary loans.

(4) All debt and other obligations arising out of funds borrowed or advanced for the purchase or lease of school buses when purchased or leased from the proceeds of a bond issue, or from money obtained from a loan made under IC 20-27-4-5, for that purpose.

(5) All debt and other obligations arising out of funds borrowed to pay judgments against the corporation.

(6) All debt and other obligations arising out of funds borrowed to purchase equipment.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-7-5Restriction on use of money Sec. 5. Money in the fund may not be used for payment of debt service, lease payments, or similar obligations for a controlled project that is approved by the voters in a referendum under IC 6-1.1-20.

As added by P.L.101-2026, SEC.12.

IC 20-25.3-7-6Allow lease rental obligations to be paid from fund; annual budget requirement Sec. 6. (a) Lease rental obligations on account of leases entered into under IC 20-47-2 or IC 20-47-3 may be paid by a corporation from the debt service fund.

(b) Payments described in subsection (a) must be provided for in the annual budget for the fund from which the payment is made.

As added by P.L.101-2026, SEC.12.

IC 20-25.5ARTICLE 25.5. REPEALEDRepealed by P.L.214-2015, SEC.1.

IC 20-25.7ARTICLE 25.7. INNOVATION NETWORK SCHOOLS

Ch. 1.General Provisions Ch. 2.Findings Ch. 3.Definitions Ch. 4.Establishment of Innovation Network Schools Ch. 5.Participation of Charter School as an Innovation Network School Ch. 6.Expired Ch. 7.Innovation Network School Grant

IC 20-25.7-1Chapter 1. General Provisions

20-25.7-1-1Applicability 20-25.7-1-2Rights, duties, and obligations under contracts entered into before July 1, 2015

IC 20-25.7-1-1Applicability Sec. 1. This article applies to all school corporations.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-1-2Rights, duties, and obligations under contracts entered into before July 1, 2015 Sec. 2. (a) Except as provided in this article, an agreement to establish an innovation network school entered into before July 1, 2015, is governed by IC 20-25.5 (before its repeal) as it existed on June 30, 2015.

(b) The parties to an agreement entered into under IC 20-25.5 (before its repeal) may jointly modify the agreement to provide that one (1) or more sections of this article are applicable to the agreement.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-2Chapter 2. Findings

20-25.7-2-1Findings

IC 20-25.7-2-1Findings Sec. 1. The general assembly recognizes that to further the goals of high quality public education throughout Indiana, each school corporation and public school should have the freedom to create the optimal learning environment. The general assembly finds that this can be accomplished by allowing for greater flexibility, innovation, and efficiency. Further, the general assembly recognizes the importance of retaining and attracting the nation's best teachers by allocating significantly more resources into the classroom and giving teachers freedom from burdensome regulations.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-3Chapter 3. Definitions

20-25.7-3-1Applicability of definitions 20-25.7-3-2"Board" 20-25.7-3-3"Eligible school" 20-25.7-3-4"Innovation network school" 20-25.7-3-5"Innovation network team" 20-25.7-3-6"Participating innovation network charter school"

IC 20-25.7-3-1Applicability of definitions Sec. 1. The definitions in this chapter apply throughout this article.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-3-2"Board" Sec. 2. "Board" refers to the governing body (as defined in IC 20-18-2-5) of a school corporation.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-3-3"Eligible school" Sec. 3. "Eligible school" means a school that is part of a school corporation.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-3-4"Innovation network school" Sec. 4. "Innovation network school" means a school operated by an innovation network team under this article.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-3-5"Innovation network team" Sec. 5. "Innovation network team" means the entity or individuals responsible for the operations of an innovation network school within a school corporation.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-3-6"Participating innovation network charter school" Sec. 6. "Participating innovation network charter school" means a charter school whose organizer enters into an agreement under IC 20-25.7-5 to have the charter school participate as an innovation network school.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-4Chapter 4. Establishment of Innovation Network Schools

20-25.7-4-1Anti-discrimination 20-25.7-4-2Establishment of innovation network schools 20-25.7-4-3Establishment of innovation network school by teachers 20-25.7-4-4Establishment of innovation network school by the board 20-25.7-4-5Agreement to establish an innovation network school; terms; appeal to state board; limit on administrative fee 20-25.7-4-6Use of property; transportation; transfer of school corporation facility; contracts for goods and services; terms 20-25.7-4-7Operational autonomy; personnel decisions; collective bargaining; participation in retirement funds 20-25.7-4-8Applicability of certain statutes and rules to innovation network schools 20-25.7-4-9Enrollment; attendance area 20-25.7-4-10Public meeting; terms 20-25.7-4-11Development of program to support establishment of an innovation network school

IC 20-25.7-4-1Anti-discrimination Sec. 1. An innovation network school is subject to all applicable federal and state laws and constitutional provisions that prohibit discrimination.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-4-2Establishment of innovation network schools Sec. 2. An innovation network school may be established in the manner provided by:

(1) section 3 of this chapter; or

(2) section 4 of this chapter.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-4-3Establishment of innovation network school by teachers Sec. 3. (a) Two (2) or more teachers and:

(1) a principal;

(2) a superintendent; or

(3) any combination of individuals described in either subdivision (1) or (2);

who are currently employed by a school corporation may submit a plan to a board for the establishment of an innovation network school.

(b) In considering whether to approve a plan submitted under this section, the board may consider innovations in the following areas:

(1) Whether the plan:

(A) increases teacher salaries;

(B) achieves financial sustainability for teacher salary increases under clause (A) by reallocating other funds, including local, private, state, or federal funds; and

(i) improves the quality of classroom instruction; and

(ii) increases the attractiveness of teaching.

(2) Class size and schedule.

(3) Length of school day or year.

(4) Use of technology to deliver highly effective instruction.

(5) Staffing models for teachers, paraprofessionals, and administrators.

(6) Teacher recruitment, training, preparation, and professional development.

(7) School governance and the roles, responsibilities, and expectations of principals in innovation network schools.

(8) Preparation and counseling of students for transition to higher education or careers.

(9) Whether the plan incorporates a school model that uses job redesign or technology to extend the reach of effective or highly effective teachers to more students for more pay within budget.

(c) A board that approves a plan under this section may request a grant from the state board under IC 20-25.7-7 for costs associated with the development and implementation of a plan developed under this section. The board shall apply for the grant from the state board in a manner prescribed by the state board.

As added by P.L.214-2015, SEC.2. Amended by P.L.118-2016, SEC.4.

IC 20-25.7-4-4Establishment of innovation network school by the board Sec. 4. (a) A board may:

(1) establish an innovation network school; or

(2) reconstitute an eligible school as an innovation network school;

as determined by the board.

(b) A board that establishes an innovation network school or reconstitutes an eligible school as an innovation network school under this section is not eligible for a grant from the state board under IC 20-25.7-7 for costs associated with the development and implementation of this section.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-4-5Agreement to establish an innovation network school; terms; appeal to state board; limit on administrative fee Sec. 5. (a) The board shall enter into an agreement with an innovation network team to establish an innovation network school or to reconstitute an eligible school as an innovation network school under section 3 or 4 of this chapter. An innovation network team may consist of or include teachers, a principal, a superintendent, or any combination of these individuals who were employed at the eligible school before the agreement is entered.

(b) The terms of the agreement must specify the following:

(1) A statement that the innovation network school is considered to be part of the school corporation and not considered a separate local educational agency.

(2) A statement that the innovation network team authorizes the department to include the innovation network 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.

(3) The amount of state and federal funding, including tuition support, and money levied as property taxes that will be distributed by the school corporation to the innovation network school.

(4) The performance goals and accountability metrics agreed upon for the innovation network school.

(5) Grounds for termination of the agreement, including the right of termination if the innovation network team fails to:

(A) comply with the conditions or procedures established in the agreement;

(B) meet generally accepted fiscal management and government accounting principles;

(D) meet the educational goals set forth in the agreement between the board and the innovation network team.

(6) 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.

(7) For an agreement entered into or renewed after June 30, 2024, and subject to section 9 of this chapter, the innovation network school's enrollment and discipline policies, including defined attendance areas and enrollment zones.

(c) If an agreement is entered into under subsection (a), the board shall notify the department that an agreement has been entered into under this section within thirty (30) days after the agreement is entered into.

(d) Upon receipt of the notification under subsection (c), for school years starting after the date of the agreement:

(1) the department shall include the innovation network 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) the department shall treat the innovation network school in the same manner as a school operated by the school corporation when calculating the total amount of state and federal funding to be distributed to the school corporation; and

(3) if requested by an innovation network school established under IC 20-25.5-4-2(a)(2) (before its repeal) or IC 20-25.7-4-4(a)(2), the department may use student growth as the state board's exclusive means to determine the innovation network 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 school's category or designation of school improvement. This subdivision expires July 1, 2023.

A school corporation and an innovation network school are not entitled to any state funding in addition to the amount the school corporation and school would otherwise be eligible to receive if the innovation network school were a public school maintained by the school corporation.

(e) If a board or innovation network team fails to follow the renewal process described in subsection (b)(6), the board or innovation network team may appeal to the state board. The state board shall hear the appeal in a public meeting and ensure that the board or innovation network team 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 innovation network team submitted the appeal to the state board.

(f) 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 student enrollment of the innovation network school.

(g) An agreement entered into between the board and an innovation network team under this section may not be altered without written approval from the innovation network team.

As added by P.L.214-2015, SEC.2. Amended by P.L.179-2016, SEC.5; P.L.269-2019, SEC.4; P.L.246-2023, SEC.29; P.L.162-2024, SEC.7.

IC 20-25.7-4-6Use of property; transportation; transfer of school corporation facility; contracts for goods and services; terms Sec. 6. (a) For as long as an innovation network team operates an innovation network school:

(1) the innovation network team may use the school building, the accompanying real property, and the building's contents, equipment, and supplies, as provided in the agreement established under section 5 of this chapter;

(2) the school corporation may:

(A) provide transportation for students attending the innovation network school; and

(B) maintain and repair the buildings and grounds consistent with the maintenance and repair to the school corporation's other buildings and grounds;

(3) the innovation network team and the school corporation may enter into an agreement to transfer the ownership of a school corporation facility to the innovation network team; and

(4) the school corporation may not alter the use of the facility occupied by the innovation network school without agreement from the innovation network team.

(b) If an innovation network team contracts with a school corporation for goods or services, the school corporation may not charge the innovation network team more for the goods or services than the school corporation pays for the goods or services. A school corporation may not require an innovation network team to contract for specific goods or services provided by the school corporation or any other entity.

(c) A school corporation and an innovation network team may negotiate to require specific services with regard to an innovation network school during the term of an agreement. However, subject to subsection (d), an innovation network team must be able to select the service provider for the services.

(d) A school corporation may require an innovation network school to:

(1) use the school corporation's student information system; and

(2) comply with the school corporation's networking, cybersecurity, and device standards.

However, nothing in this subsection may be construed to allow a school corporation to alter an innovation network team's autonomy to determine the academic programming of the innovation network team's school.

(e) For as long as an innovation network team operates an innovation network school, the school corporation may distribute money levied as property taxes to the innovation network team. Property taxes distributed to an innovation network team must be used only for a purpose for which the property taxes could have been used by the school corporation. Property taxes distributed under this subsection may supplement services and property provided under subsection (a) or (b). The parties may jointly modify an agreement described in section 5 of this chapter to implement this subsection.

(f) An agreement concerning the transfer of ownership of a school corporation facility to an innovation network team described in subsection (a) is not subject to IC 20-26-7.1.

As added by P.L.214-2015, SEC.2. Amended by P.L.246-2023, SEC.30; P.L.162-2024, SEC.8.

IC 20-25.7-4-7Operational autonomy; personnel decisions; collective bargaining; participation in retirement funds Sec. 7. (a) The innovation network team shall have full operational autonomy to run the innovation network school as provided in the agreement described in section 5 of this chapter.

(b) For any collective bargaining agreement under IC 20-29 entered into after July 1, 2015, a governing body is not bound by its collective bargaining agreement for employees of an innovation network school established under this chapter. Employees of an innovation network team may organize and create a separate bargaining unit to collectively bargain with the innovation network team under IC 20-29.

(1) the state teachers' retirement fund established under IC 5-10.4; or

(2) the public employees' retirement fund established under IC 5-10.3.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-4-8Applicability of certain statutes and rules to innovation network schools Sec. 8. (a) Except as otherwise provided in this article, the following do not apply to an innovation network school:

(1) An Indiana statute applicable to a governing body or school corporation.

(2) A rule or guideline adopted by the state board, except for those rules that assist a teacher in gaining or renewing a standard or advanced license.

(3) A local regulation or policy adopted by a school corporation unless specifically incorporated in the agreement established under this chapter.

(b) Except as otherwise provided in this article, the following statutes apply to an innovation network school:

(1) IC 20-24-8-5 (statutes applicable to charter schools).

(2) IC 20-28-11.5 (staff performance evaluations).

(3) IC 20-24-6 (employment of teachers and other personnel in charter schools).

(4) IC 20-35.5 (dyslexia screening and intervention).

As added by P.L.214-2015, SEC.2. Amended by P.L.126-2022, SEC.3.

IC 20-25.7-4-9Enrollment; attendance area Sec. 9. (a) Any student who lives in the attendance area served by a school that is operated as an innovation network school under this chapter may attend the innovation network school. The innovation network school may not refuse enrollment to a student who lives in the attendance area or a student described in IC 20-26-19-5.

(b) 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 an innovation network school receives a greater number of applications than there are spaces for students, each timely applicant must be given an equal chance of admission.

As added by P.L.214-2015, SEC.2. Amended by P.L.38-2020, SEC.4.

IC 20-25.7-4-10Public meeting; terms Sec. 10. An innovation network team and the board shall hold a joint public meeting at least two (2) times each year to discuss issues and progress concerning the innovation network school.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-4-11Development of program to support establishment of an innovation network school Sec. 11. The board shall develop a program to provide support to teachers and administrators who wish to establish an innovation network school.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-5Chapter 5. Participation of Charter School as an Innovation Network School

20-25.7-5-1Governing laws 20-25.7-5-1.5Prohibited from being authorizer and entering into an agreement at the same time 20-25.7-5-2Agreements to reconstitute eligible schools 20-25.7-5-2Agreements to reconstitute eligible schools with one governing body of a school corporation 20-25.7-5-2.5Agreements to reconstitute eligible schools with more than one governing body of a school corporation 20-25.7-5-2.7Participating innovation network charter school treated as charter school; tuition support calculation 20-25.7-5-3Authority of school corporation; transportation; maintenance and repair; transfer of school corporation facility; contracts for goods or services; terms 20-25.7-5-4Designated school corporation employee; conditions 20-25.7-5-5Admission requirements and limitations 20-25.7-5-5Admission requirements and limitations 20-25.7-5-6State tuition support distribution 20-25.7-5-6State tuition support distribution

IC 20-25.7-5-1Governing laws Sec. 1. Except as expressly provided in this article, a participating innovation network charter school remains subject to all state laws that govern charter schools.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-5-1.5Prohibited from being authorizer and entering into an agreement at the same time 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.

As added by P.L.151-2026, SEC.5.

IC 20-25.7-5-2Agreements to reconstitute eligible schools Note: This version of section effective until 7-1-2027. See also following version of this section, effective 7-1-2027.

Sec. 2. (a) 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) 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 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), 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)).

(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) If an organizer and the board enter into an agreement under subsection (a), 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) Upon receipt of the notification under subsection (c), 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;

(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 funding to be distributed to the school corporation unless subsection (e) 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) 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) If the board or organizer fails to follow the process described in subsection (b)(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) 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) An agreement entered into between the board and an organizer under this section may not be altered without written approval from the organizer.

As added by P.L.214-2015, SEC.2. Amended by P.L.179-2016, SEC.6; P.L.217-2017, SEC.99; P.L.250-2017, SEC.25; P.L.86-2018, SEC.174; P.L.269-2019, SEC.5; P.L.270-2019, SEC.6; P.L.108-2019, SEC.212; P.L.156-2020, SEC.75; P.L.165-2021, SEC.153; P.L.201-2023, SEC.159; P.L.246-2023, SEC.31; P.L.9-2024, SEC.388; P.L.162-2024, SEC.9; P.L.213-2025, SEC.169.

IC 20-25.7-5-2Agreements to reconstitute eligible schools with one governing body of a school corporation Note: This version of section effective 7-1-2027. See also preceding version of this section, effective until 7-1-2027.

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.

(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.

(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 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 (e)(2)).

(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).

(d) If an organizer and the 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:

(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 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 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.

(i) An agreement entered into between the board and an organizer under this section may not be altered without written approval from the organizer.

IC 20-25.7-5-2.5Agreements to reconstitute eligible schools with more than one governing body of a school corporationEffective 7-1-2027.

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 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.

(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)).

(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 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.

(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.

As added by P.L.151-2026, SEC.7.

IC 20-25.7-5-2.7Participating innovation network charter school treated as charter school; tuition support calculationEffective 7-1-2027.

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.

As added by P.L.151-2026, SEC.8.

IC 20-25.7-5-3Authority of school corporation; transportation; maintenance and repair; transfer of school corporation facility; contracts for goods or services; terms Sec. 3. (a) For as long as a charter school remains a participating innovation network charter school:

(1) the school corporation may provide transportation for students attending the participating innovation network charter school;

(2) the school corporation may maintain and repair the buildings and grounds used by the participating innovation network charter school consistent with the maintenance and repair to the school corporation's other buildings and grounds;

(3) the school corporation may enter into an agreement to transfer the ownership of a school corporation facility to the organizer; and

(4) the school corporation may not alter the use of the facility occupied by the participating innovation network charter school without written agreement from the organizer.

(b) If an organizer contracts with a school corporation for goods or services, the school corporation may not charge the organizer more for the goods or services than the school corporation pays for the goods or services. A school corporation may not require an organizer to contract for specific goods or services provided by the school corporation or any other entity.

(c) A school corporation and an organizer may negotiate to require specific services with regard to a participating innovation network charter school during the term of an agreement. However, an organizer must be able to select the service provider for the services.

(d) For as long as a charter school remains a participating innovation network charter school, the school corporation may distribute money levied as property taxes to the charter school. Property taxes distributed to a charter school must be used only for a purpose for which the property taxes could have been used by the school corporation. Property taxes distributed under this subsection may supplement services and property provided under subsection (a) or (b). The parties may jointly modify an agreement described in section 2 of this chapter to implement this subsection.

(e) An agreement concerning the transfer of ownership of a school corporation facility described in subsection (a) is not subject to IC 20-26-7.1.

(f) Unless an agreement entered into before July 1, 2024, between a board and an organizer provides otherwise, a school corporation may not charge an organizer an amount for goods and services that is greater than the amount of the operations fund property tax levy the organizer receives under IC 20-46-8-11.2 or IC 20-46-8-12 for the participating innovation network charter school.

As added by P.L.214-2015, SEC.2. Amended by P.L.246-2023, SEC.32; P.L.162-2024, SEC.10; P.L.68-2025, SEC.207.

IC 20-25.7-5-4Designated school corporation employee; conditions Sec. 4. An employee of a school corporation who provides services to a participating innovation network charter school under this article remains an employee of the school corporation.

As added by P.L.214-2015, SEC.2.

IC 20-25.7-5-5Admission requirements and limitations Note: This version of section effective until 7-1-2027. See also following version of this section, effective 7-1-2027.

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 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 in the school corporation if the school does not have a defined attendance area, 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 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;

(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 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.

As added by P.L.179-2016, SEC.7. Amended by P.L.250-2017, SEC.26; P.L.130-2018, SEC.88; P.L.155-2020, SEC.6; P.L.211-2021, SEC.14; P.L.216-2021, SEC.13; P.L.220-2021, SEC.9.

IC 20-25.7-5-5Admission requirements and limitations Note: This version of section effective 7-1-2027. See also preceding version of this section, effective until 7-1-2027.

(b) Except as provided in subsections (c) and (d), a participating 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; 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;

(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

(A) ten (10) or more school days;

(B) a violation under IC 20-33-8-16;

(D) a violation of a school corporation's drug or alcohol rules.

(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).

As added by P.L.179-2016, SEC.7. Amended by P.L.250-2017, SEC.26; P.L.130-2018, SEC.88; P.L.155-2020, SEC.6; P.L.211-2021, SEC.14; P.L.216-2021, SEC.13; P.L.220-2021, SEC.9; P.L.151-2026, SEC.9.

IC 20-25.7-5-6State tuition support distribution Note: This version of section effective until 7-1-2027. See also following version of this section, effective 7-1-2027.

Sec. 6. (a) Subject to an administrative fee as described in section 2(g) of this chapter, a school corporation that enters into an agreement with an organizer under 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) 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).

As added by P.L.162-2024, SEC.11.

IC 20-25.7-5-6State tuition support distribution Note: This version of section effective 7-1-2027. See also preceding version of this section, effective until 7-1-2027.

Sec. 6. (a) Subject to an administrative fee as described in section 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.

(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).

As added by P.L.162-2024, SEC.11. Amended by P.L.151-2026, SEC.10.

IC 20-25.7-6Chapter 6. ExpiredExpired 7-1-2018 by P.L.214-2015, SEC.2.

IC 20-25.7-7Chapter 7. Innovation Network School Grant

20-25.7-7-1Establishment of fund 20-25.7-7-2Administration of grants

IC 20-25.7-7-1Establishment of fund Sec. 1. (a) The innovation network school grant fund is established to provide grants to an innovation network school, including a participating innovation network charter school.

(b) The fund shall be administered by the state board.

(1) Appropriations made by the general assembly.

(2) Gifts, grants, or donations.

(3) Interest accruing from investment of money in the fund.

(d) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.

(e) Interest that accrues from investments of the fund shall be deposited in the fund.

As added by P.L.214-2015, SEC.2. Amended by P.L.250-2017, SEC.27.

IC 20-25.7-7-2Administration of grants Sec. 2. (a) An innovation network school may be awarded only one (1) grant under this chapter.

(b) The state board shall determine the amount of a grant based on the plan submitted by a board.

(c) The state board shall develop criteria for awarding a grant under this section, including documentation requirements that must be included with the plan.

(d) A board shall apply for a grant under this section in a manner prescribed by the state board. Grant awards are limited to an innovation network school that has not received, or is not planning to receive, grant funding as a result of, or related to, its innovation network status, from other public or private sources.

(e) An innovation network school receiving funding under this chapter shall use the funds for educational purposes.

(f) The state board may adopt rules under IC 4-22-2 or guidelines necessary to administer this section.

As added by P.L.214-2015, SEC.2. Amended by P.L.250-2017, SEC.28; P.L.86-2018, SEC.175.

IC 20-26ARTICLE 26. SCHOOL CORPORATIONS: GENERAL ADMINISTRATIVE PROVISIONS

Ch. 1.Applicability Ch. 2.Definitions Ch. 3.Home Rule Ch. 4.Organization and Operation of Governing Body Ch. 5.General Powers and Duties Ch. 5.5.School Library Ch. 6.Repealed Ch. 7.Property and Eminent Domain Ch. 7.1.Transfers of Vacant School Buildings to Charter Schools Ch. 8.Repealed Ch. 9.School Breakfast and Lunch Programs Ch. 10.Joint Programs and Personnel Ch. 11.Legal Settlement and Transfer of Students; Transfer Tuition Ch. 12.Curricular Material Ch. 13.Graduation Rate Determination Ch. 14.Interscholastic Athletic Associations Ch. 15.Repealed Ch. 16.School Corporation Police Departments Ch. 17.School Corporation Employee Health Coverage Ch. 18.Repealed Ch. 18.2.School Resource Officers Ch. 19.Temporary Exception to Residency Requirements Ch. 20.Patriotic Youth Membership Organizations Ch. 21.Personal Analyses, Evaluations, or Surveys by Third Party Vendors

IC 20-26-1Chapter 1. Applicability

20-26-1-1Applicability

Source: official Indiana text · Last verified 2026-08-27

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Indiana § 20-25-16-1 - Powers of board

§ 20-25-16-1. Powers of board

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