Indiana § 20-26-7-48 - School corporation annual report regarding owned or leased school buildings

§ 20-26-7-48. School corporation annual report regarding owned or leased school buildings

Note: This version of section effective until 3-12-2026. See also following version of this section, effective 3-12-2026.

Sec. 48. (a) The following definitions apply throughout this section:

(1) "Current school year" refers to a year in which the governing body is required to conduct a review of school building usage under section 47(c) of this chapter.

(2) "Enrollment" has the meaning set forth in section 47(a)(3) of this chapter.

(b) This section:

(1) applies to a school corporation only if:

(A) the total student enrollment for in-person instruction in the school corporation in the current school year is at least ten percent (10%) less than the student enrollment for in-person instruction in the school corporation in a school year that precedes the current school year by five (5); and

(B) the school corporation in the current school year has more than one (1) school building serving the same grade level as a school building subject to closure under section 47 of this chapter; and

(2) does not apply to a school city (as defined in IC 20-25-2-12).

(c) Each school corporation shall annually report to the department, in the form and on the schedule specified by the department, the following information:

(1) A listing of all buildings owned or leased by the school corporation that were originally designed as a school building.

(2) The following information for each building listed in subdivision (1):

(A) Designed occupancy, regardless of current use.

(B) Current use (and percentage of use) for classroom instruction, as special use classrooms, as office space, or as storage or alternatively the building's status as transitioning from one (1) use or combination of uses to another.

(C) The following information:

(i) Current average full-time equivalent student enrollment for in-person instruction in the school building on instructional days (as determined under IC 20-30-2) in a school year.

(ii) Percentage of instructional use.

(iii) Percentage of use for other purposes.

(D) Self-evaluation of whether the building qualifies for closure under section 47 of this chapter or the school board otherwise intends to close the building and the date closure will occur (if applicable).

As added by P.L.189-2023, SEC.10. Amended by P.L.101-2026, SEC.14.

IC 20-26-7-48School corporation annual report regarding owned or leased school buildings Note: This version of section effective 3-12-2026. See also preceding version of this section, effective until 3-12-2026.

Sec. 48. (a) The following definitions apply throughout this section:

(1) "Current school year" refers to a year in which the governing body is required to conduct a review of school building usage under section 47(c) of this chapter.

(2) "Enrollment" has the meaning set forth in section 47(a)(3) of this chapter.

(b) This section:

(1) applies to a school corporation only if:

(A) the total student enrollment for in-person instruction in the school corporation in the current school year is at least ten percent (10%) less than the student enrollment for in-person instruction in the school corporation in a school year that precedes the current school year by five (5); and

(B) the school corporation in the current school year has more than one (1) school building serving the same grade level as a school building subject to closure under section 47 of this chapter; and

(2) does not apply to a school city (as defined in IC 20-25-2-12).

(c) Beginning July 1, 2027, each school corporation shall annually report to the department, in the form and on the schedule specified by the department, the following information:

(1) A listing of all buildings owned or leased by the school corporation that were originally designed as a school building.

(2) The following information for each building listed in subdivision (1):

(A) Designed occupancy, regardless of current use.

(B) Current use (and percentage of use) for classroom instruction, as special use classrooms, as office space, or as storage or alternatively the building's status as transitioning from one (1) use or combination of uses to another.

(C) The following information:

(i) Current average full-time equivalent student enrollment for in-person instruction in the school building on instructional days (as determined under IC 20-30-2) in a school year.

(ii) Percentage of instructional use.

(iii) Percentage of use for other purposes.

(D) Self-evaluation of whether the building qualifies for closure under section 47 of this chapter or the school board otherwise intends to close the building and the date closure will occur (if applicable).

As added by P.L.189-2023, SEC.10. Amended by P.L.101-2026, SEC.14; P.L.151-2026, SEC.12.

IC 20-26-7.1Chapter 7.1. Transfers of Vacant School Buildings to Charter Schools

20-26-7.1-1Application; referendum qualifications 20-26-7.1-2"Charter school" 20-26-7.1-2.1"Covered school building" 20-26-7.1-2.2"Interested person" 20-26-7.1-2.3"State educational institution" 20-26-7.1-2.8Authorizer notification requirement 20-26-7.1-3Disposal, sale, hold without operating, lease, or demolition of covered school building 20-26-7.1-4Notification requirements; timeline; determination by department; appeal; sell or lease to county or municipal government; civil action; award of injunctive relief or damages 20-26-7.1-4.5School corporation responsibility to maintain vacant covered school building 20-26-7.1-5Sale or transfer of covered school building; responsibility to maintain covered school building 20-26-7.1-5.3Sale or lease of covered school building to charter school; petition to transfer school building back to school corporation; cost of capital improvements 20-26-7.1-6Responsibility for expenses or debt during lease 20-26-7.1-7Repealed 20-26-7.1-8Repealed 20-26-7.1-8.5Repealed 20-26-7.1-9Compliance 20-26-7.1-10Violation 20-26-7.1-11Liberal construction

IC 20-26-7.1-1Application; referendum qualifications Sec. 1. (a) For purposes of this section, "charter school" does not include a virtual charter school or an adult high school.

(b) This chapter does not apply to the following:

(1) A school building that since July 1, 2011, is leased or loaned by the school corporation that owns the school building to another entity, if the entity is not a building corporation or other entity that is related in any way to, or created by, the school corporation or the governing body.

(2) A school corporation to which all of the following apply:

(A) The county auditor distributes revenue after May 10, 2023, as required under IC 20-46-1-21 or IC 20-46-1-22 to each eligible charter school.

(B) If the school corporation listed in IC 20-46-9-22 receives revenue from a school safety referendum tax levy under IC 20-46-9, the county auditor distributes revenue after May 10, 2023, as required under IC 20-46-9-22 to each charter school described in IC 20-46-9-22(b).

The above subdivisions are intended to apply retroactively. No referendums or distributed revenue prior to May 10, 2023, are effective to provide exemption from this chapter.

(3) A school corporation to which all of the following apply:

(A) The school corporation approves a resolution after May 10, 2023, to impose an operating referendum tax levy under IC 20-46-1 after May 10, 2023, that includes sharing the revenue from the referendum tax levy in the amounts described in clause (B) with each charter school that:

(i) a student who resides within the attendance area of the school corporation attends; and

(ii) elects to participate in the referendum.

The above subdivisions are intended to apply retroactively. No resolutions, referendums, or distributed revenue prior to May 10, 2023, are effective to provide exemption from this chapter.

(B) The amount of referendum tax levy revenue that the school corporation is required to share with each charter school under the resolution described in clause (A) is equal to the amount determined applying the applicable formula under IC 20-46-1-21 or IC 20-46-1-22.

(C) The referendum tax levy described in clause (A) is approved by the voters.

(D) The school corporation distributes the amounts described in clause (B) to each charter school described in clause (A).

(E) If the school corporation receives revenue from a school safety referendum tax levy under IC 20-46-9, the school corporation shares the revenue from the school safety referendum tax levy with each charter school that:

(i) a student who resides within the attendance area of the school corporation attends; and

(ii) elects to participate in the referendum;

in an amount equal to the amount determined applying the formula under IC 20-46-9-22(d).

(4) A school city (as defined in IC 20-25-2-12).

(c) In order for any payment to a charter school to qualify as sharing of proceeds from a referendum for purposes of exemption from IC 20-26-7.1, the referendum must have been passed with prior notice to voters of all amounts of referendum proceeds to be paid to charter schools. Any claim of exemption based on payment of proceeds from a referendum passed without such notice is void.

As added by P.L.270-2019, SEC.13. Amended by P.L.189-2023, SEC.11; P.L.36-2024, SEC.3; P.L.68-2025, SEC.209; P.L.101-2026, SEC.15.

IC 20-26-7.1-2"Charter school" Sec. 2. As used in this chapter, "charter school" has the meaning set forth in IC 20-24-1-4 and includes an entity that has filed an application with an authorizer and is seeking approval from the authorizer to operate a charter school under IC 20-24-3.

As added by P.L.270-2019, SEC.13.

IC 20-26-7.1-2.1"Covered school building" Sec. 2.1. As used in this chapter, "covered school building" means a school building that is owned by a school corporation or any other entity that is related in any way to, or created by, the school corporation or the governing body, including a building corporation, and that has at any time been used for classroom instruction.

As added by P.L.189-2023, SEC.12.

IC 20-26-7.1-2.2"Interested person" Sec. 2.2. As used in this chapter, "interested person" refers to the following:

(1) Each state educational institution.

(2) Each charter school in a county where a school corporation with a covered school building subject to closure is located.

(3) All charter school authorizers (excluding school corporation authorizers as defined in IC 20-24-1-2.5(1)).

(4) Each trade or professional organization representing charter schools listed as an organization representing charter schools on the website of the department or otherwise known to a school corporation with a covered school building subject to closure.

(5) The Indiana charter school board.

(6) Each charter school that is not described in subdivision (2) that has provided a written notice of interest in a covered school building to the department.

As added by P.L.189-2023, SEC.13.

IC 20-26-7.1-2.3"State educational institution" Sec. 2.3. As used in this chapter, "state educational institution" has the meaning set forth in IC 21-7-13-32.

As added by P.L.155-2021, SEC.1.

IC 20-26-7.1-2.8Authorizer notification requirement Sec. 2.8. When a notice is given to an authorizer under this chapter or IC 20-26-7-47, the authorizer is responsible for notifying all charter schools authorized by or applying for authorization by the authorizer. The authorizer must provide the notice to charter schools not more than ten (10) days after the authorizer received the notice.

As added by P.L.189-2023, SEC.14.

IC 20-26-7.1-3Disposal, sale, hold without operating, lease, or demolition of covered school building Sec. 3. (a) Except as provided in section 1 of this chapter or subsection (b), (c), or (d), before a governing body may sell, exchange, lease, demolish, hold without operating, or dispose of a covered school building, a governing body shall make available for lease or purchase by a charter school or state educational institution any covered school building owned by the school corporation or any other entity that is related in any way to, or created by, the school corporation or the governing body, including a building corporation, that the governing body elects to close or the school corporation is required to close under IC 20-26-7-47, in order for the covered school building to be used by a:

(1) charter school to conduct prekindergarten through grade 12 classroom instruction; or

(2) state educational institution for an academic purpose.

(b) The following are not required to comply with this chapter:

(1) A governing body that vacates a covered school building in order to:

(A) renovate the covered school building for a future allowable use by the school corporation as permitted under IC 20-26-7-47; or

(B) demolish the covered school building, in whole or part, and build a new school building or an addition to a school building on the same site as the demolished building.

(2) An emergency manager of a distressed school corporation under IC 6-1.1-20.3.

(3) The governing body of the School City of East Chicago school corporation for the Carrie Gosch Elementary School building.

(4) A school corporation that has had a designation as a distressed political subdivision under IC 6-1.1-20.3 within the previous three (3) years.

(c) This section does not apply to a covered school building in which a governing body under IC 20-26-5-4(a)(7) entered a lease prior to January 1, 2019, with a state accredited nonpublic school. In addition, the governing body may, during or at the expiration of the term of such lease, sell the school building leased under IC 20-26-5-4(a)(7) to the nonpublic school at a purchase price mutually agreed to by the governing body and the nonpublic school.

(d) This section does not apply to a covered school building of a school corporation to which the following apply:

(1) The school corporation had, before January 1, 2023, entered into a lease or memorandum of understanding with a nonprofit organization exempt from federal taxation under Section 501(c)(3) through 501(c)(7) of the Internal Revenue Code for the use of the covered school building.

(2) The lease or memorandum of understanding described in subdivision (1):

(A) continues in effect;

(B) is renewed; or

(C) is replaced by a new lease or memorandum of understanding that is entered into between the school corporation and the nonprofit organization described in subdivision (1).

(3) The nonprofit organization described in subdivision (1) uses the covered school building for an educational purpose throughout the term of any lease or memorandum of understanding.

If at any time the conditions under subdivisions (2) and (3) are not met, the covered school building is subject to IC 20-26-7-47 and this chapter.

(e) A covered school building that a school corporation closes or is required to close may not be retained by the school corporation for storage or office use unless the conditions of IC 20-26-7-47(e)(3), IC 20-26-7-47(e)(4), or IC 20-26-7-47(e)(5) are met.

As added by P.L.270-2019, SEC.13. Amended by P.L.92-2020, SEC.27; P.L.155-2021, SEC.2; P.L.189-2023, SEC.15; P.L.36-2024, SEC.4.

IC 20-26-7.1-4Notification requirements; timeline; determination by department; appeal; sell or lease to county or municipal government; civil action; award of injunctive relief or damages Sec. 4. (a) Not later than thirty (30) days after the date a governing body of a school corporation determines at a public meeting to cease using a covered school building for classroom instruction on student instructional days (as described in IC 20-30-2-2) for a school year as required under IC 20-30-2-3, a school corporation shall provide written notice to the department regarding the date that the covered school building has ceased or will cease being used for classroom instruction as described in this subsection.

(b) If the school corporation does not intend to make a covered school building available for lease or purchase in accordance with this chapter, the school corporation shall state in the notice required under subsection (a) the factual and legal basis for the school corporation's contention that the covered school building is not required to be made available under this chapter. The school corporation has the burden of going forward with the evidence and the burden of proof to demonstrate that the covered school building is not required to be made available under this chapter. Any claim for exclusion from a requirement to make the covered school building available under this chapter which is not stated in the notice under this subsection is waived.

(c) If a school corporation does not provide notice to the department under subsection (a), any claim for exclusion from a requirement to make the covered school building available under this chapter is waived.

(d) Not later than fifteen (15) days after the date that the department receives a notice from a school corporation under subsection (a), the department shall provide written notice to all interested persons regarding the notice from the school corporation submitted under subsection (a).

(e) If a notice from a school corporation under subsection (a) acknowledges that the covered school building will be made available in accordance with this chapter, the department's notice to interested persons shall provide that any notice of interest by an interested person for the covered school building must be submitted to the department not later than sixty (60) days after the date the interested person receives the department's notice under subsection (d).

(f) If a notice from a school corporation under subsection (a) includes a claim that the covered school building will not be made available under this chapter, an interested person may submit to the department, not later than thirty (30) days after the date the interested person receives the notice from the department under subsection (d), a rebuttal to the factual and legal basis for the school corporation's contention that the covered school building is not required to be made available under this chapter.

(g) The department shall, not later than sixty (60) days after the date that a response is filed under IC 20-26-7-47(l) or a rebuttal is submitted under subsection (f), issue a determination to the parties to the proceeding as to whether the covered school building must be made available under this chapter. The department shall publish a copy of the determination on the department's website.

(h) Not later than sixty (60) days after the date that the department issues a determination under subsection (g), a party to the proceeding may file with the state board a petition requesting review of the department's determination. An appeal to the state board shall be subject to the procedure described in IC 20-26-11-15(b).

(i) The state board shall issue a final determination on an appeal filed under subsection (h) not later than forty-five (45) days after the date on which an appeal is filed.

(j) If a petition requesting review under subsection (h) has not been concluded by a final determination by the state board under subsection (i) within two (2) years after the initial notice of interest in acquiring the covered school building was submitted by a party to the proceeding, a party to the proceeding may request that the department determine whether a school building:

(1) is not required to be made available for lease or purchase to a party to the proceeding under this chapter; or

(2) is required to be conveyed to a party to the proceeding in accordance with this chapter.

The department shall make a determination on a request submitted under this subsection not later than thirty (30) days after the date the department receives the request. After the department issues an order under this subsection, the pending petition requesting review shall be deemed resolved by final order and there shall be no administrative or judicial review of the order.

(k) If a party to the proceeding chooses to appeal a final determination issued by the state board under subsection (i), the appeal may only be filed in the court of appeals and must be filed not later than thirty (30) days after the date the final determination is issued by the state board. A school corporation that files an appeal of the state board's final determination and is determined to be the nonprevailing party by the court of appeals shall be responsible for the reasonable attorney's fees incurred by the prevailing party.

(l) Not later than fifteen (15) days after the department provides notice to interested parties under subsection (d) that a covered school building is to be closed, the governing body shall do the following:

(1) Make the covered school building available for inspection by a charter school or state educational institution that notifies the department that it is interested in leasing or purchasing the covered school building.

(2) Make the following information available to a charter school or state educational institution described in subdivision (1):

(A) Estimates of the operating expenses for the covered school building for the past three (3) years.

(B) Written information regarding the condition of the covered school building, including the age of the roof and the HVAC system, and any known conditions which, in the governing body's opinion, require prompt repair or replacement.

(C) A legal description of the property.

(m) If the governing body fails to take the actions required under subsection (l), a charter school having notified the school corporation of its interest in the covered school building is entitled to an injunction requiring the governing body to take the actions under subsection (l).

(n) The school corporation shall lease the covered school building to a charter school or state educational institution for one dollar ($1) per year for as long as the state educational institution uses the covered school building for an academic purpose or the charter school uses the covered school building for classroom instruction, for a term at the state educational institution's or charter school's discretion, or sell the covered school building for one dollar ($1), if the charter school or state educational institution does the following:

(1) Within ninety (90) days of receiving the department's notice under subsection (d), a charter school or state educational institution must submit a preliminary request to purchase or lease the covered school building.

(2) Subject to subsection (o), within ninety (90) days of receiving the department's notice under subsection (d), a charter school or state educational institution must submit to the school corporation the following information:

(A) The name of the charter school or state educational institution that is interested in leasing or purchasing the covered school building.

(B) A time frame, which may not exceed three (3) years from the date that the covered school building is to be closed, no longer used, or no longer occupied, in which the:

(i) charter school intends to begin providing classroom instruction in the covered school building; or

(ii) state educational institution intends to begin using the covered school building for an academic purpose.

(C) A resolution, adopted by the board of the charter school or state educational institution stating that the board of the charter school or state educational institution has determined that, after the charter school or state educational institution has made any necessary repairs or modifications, the covered school building will be sufficient to meet the charter school's or state educational institution's needs and can be operated within the charter school's or state educational institution's budget.

(o) If the department does not receive any preliminary requests to purchase or lease a covered school building within the time frame described in subsection (n)(1), the department shall send notification to the school corporation that the department has not received any preliminary requests to purchase or lease the covered school building. Upon receipt of the notification under this subsection, the school corporation may sell or lease the covered school building to the county or municipal government in which the school corporation is located for a mutually agreed upon price. If the county or municipal government does not purchase or lease the covered school building, the school corporation may sell or otherwise dispose of the covered school building in accordance with IC 36-1-11, IC 20-25-4-14, and IC 20-26-5-4(a)(7).

(p) If only one (1) charter school submits a preliminary request to purchase or lease the covered school building, the department shall notify the school corporation of the identity of the charter school and direct the school corporation to complete a sale or lease to the charter school in accordance with subsection (t). In the event that two (2) or more charter schools submit a preliminary request to purchase or lease a covered school building within the time frame described in subsection (n)(1), the department shall send notification to each interested person and the school corporation that the department has received two (2) or more preliminary requests under this section. An authorizer committee shall be established, with each statewide authorizer that has authorized one (1) or more charter schools appointing a representative, and the committee shall establish the chairperson and procedures for the committee. Within sixty (60) days of receiving notice under this subsection, the committee shall select which charter school may proceed under subsection (t) to purchase or lease the covered school building or determine if two (2) or more charter schools should co-locate within the covered school building. The committee shall base the committee's decision on the following criteria:

(1) Preference shall be given to existing charter schools that have a proven track record of student academic performance.

(2) If two (2) or more charter schools of proven academic performance are competing and only one (1) charter school is operating in the county in which the covered school building is located, the charter school in the same county as the covered school building shall be given preference.

In the event that the committee determines that two (2) or more charter schools should co-locate in the covered school building, the charter schools have sixty (60) days to submit a memorandum of understanding stating that the charter schools shall be jointly and severally liable for the obligations related to the sale or lease of the covered school building, and specifying how the charter schools will utilize the covered school building and share responsibility for operational, maintenance, and renovation expenses. If the charter schools are unable to agree, the charter schools shall be deemed to have revoked their prior request regarding the lease or sale of the covered school building. The committee shall give notice of the committee's decision to the school corporation and each interested person. A charter school that is not selected by the committee may appeal the decision to the state board not more than thirty (30) days after receipt of the committee's decision. The state board shall issue a final order in the appeal not more than sixty (60) days after receipt of a properly filed appeal. Notice of the appeal and the final order in the appeal must be given to the school corporation.

(q) If a charter school does not submit a preliminary request to purchase or lease the covered school building and only one (1) state educational institution submits a preliminary request to purchase or lease the covered school building, the department shall:

(1) notify the school corporation of the identity of the state educational institution; and

(2) direct the school corporation to complete a sale or lease to the state educational institution in accordance with subsection (t).

(r) If one (1) or more state educational institutions submit preliminary requests to purchase or lease a covered school building, a selection committee shall be established consisting of one (1) member appointed by the executive of the largest city or town in the county in which the covered school building is located, one (1) member appointed by the city or town council of the largest city or town in the county in which the covered school building is located, one (1) member appointed by the county commissioners of the county in which the covered school building is located, one (1) member appointed by the county council of the county in which the covered school building is located, and one (1) member appointed by the chamber of commerce of the county in which the covered school building is located.

(s) Not later than sixty (60) days after the date that a member is appointed under subsection (r), the committee shall:

(1) select which state educational institution may proceed to purchase or lease the covered school building; or

(2) determine whether more than one (1) state educational institution should co-locate within the covered school building.

In making the committee's determination, the committee shall give preference to a state educational institution whose proposed use of the covered school building is assessed as having the greatest educational benefit for prekindergarten through grade 12 education. A committee determination under this subsection may not be appealed.

(t) A school corporation shall lease the covered school building for one dollar ($1) per year to the charter school or state educational institution for as long as the:

(1) charter school uses the covered school building for classroom instruction for any combination of kindergarten through grade 12; or

(2) state educational institution uses the covered school building for an academic purpose.

The term of the lease shall be established at the charter school's or state educational institution's discretion and include an option for the state educational institution or charter school to purchase the covered school building for one dollar ($1). Alternatively, the school corporation shall sell the covered school building to the charter school or state educational institution for one dollar ($1), if the charter school or state educational institution has met the requirements set forth in subsection (n) and uses the covered school building in the manner prescribed by this subsection. If the charter school or state educational institution selected to lease or purchase the covered school building has met the requirements under subsection (n), the school corporation has not more than thirty (30) days after the date notice of a final unappealable decision is received by the school corporation to complete the lease or sale of the covered school building to the charter school or state educational institution. If the transaction is not completed within thirty (30) days, the department or the selected charter school or state educational institution may, under section 9 of this chapter, request that the attorney general enforce the sale or lease or may file suit to enforce the sale or lease. If a charter school or state educational institution has not met the requirements under subsection (n), the school corporation may sell or otherwise dispose of the covered school building in accordance with IC 36-1-11, IC 20-25-4-14, and IC 20-26-5-4(a)(7).

(u) In addition to a request that the attorney general enforce the sale or lease or file suit to enforce the sale or lease of a covered school building under subsection (t), if the transaction described in subsection (t) is not completed within thirty (30) days after the date the notice of a final unappealable decision is received by the school corporation, the charter school or state educational institution may bring a civil action against the school corporation. The court may award to a charter school or state educational institution that prevails in an action under this subsection the following:

(1) Injunctive relief.

(2) Liquidated damages computed at a rate of ten thousand dollars ($10,000) per day for each day that exceeds the thirty (30) day time frame described in subsection (t).

(v) A lease or sale of a covered school building to a charter school or a state educational institution under this section includes transfer of:

(1) those assets that are fixtures of the covered school building; and

(2) adjacent parking lots and playgrounds.

As added by P.L.270-2019, SEC.13. Amended by P.L.32-2021, SEC.51; P.L.155-2021, SEC.3; P.L.189-2023, SEC.16; P.L.36-2024, SEC.5; P.L.1-2025, SEC.188; P.L.151-2026, SEC.13.

IC 20-26-7.1-4.5School corporation responsibility to maintain vacant covered school building Sec. 4.5. (a) After a governing body passes a resolution or takes official action to close, no longer use, or no longer occupy a covered school building or the covered school building is required to be closed under IC 20-26-7-47, a school corporation is responsible for meeting the requirements described in subsection (b) until the applicable covered school building is:

(1) sold or leased to a charter school or state educational institution; or

(2) eligible to be sold or otherwise disposed in accordance with IC 36-1-11, IC 20-25-4-14, and IC 20-26-5-4(a)(7).

(b) During the period described in subsection (a), a school corporation is:

(1) responsible for the maintenance of a covered school building, including:

(A) protection against theft or vandalism;

(B) fire protection; and

(C) ensuring the covered school building is not damaged during adverse weather conditions;

(2) responsible for maintaining the physical condition of the covered school building in the same physical condition the applicable covered school building was on the last day that it was used for classroom instruction; and

(3) financially responsible for any damage or destruction that occurs to the covered school building.

As added by P.L.155-2021, SEC.4. Amended by P.L.189-2023, SEC.17.

IC 20-26-7.1-5Sale or transfer of covered school building; responsibility to maintain covered school building Sec. 5. (a) If:

(1) a covered school building is sold to a charter school or state educational institution under section 4 of this chapter; and

(2) the charter school or state educational institution described in subdivision (1) no longer intends to use the covered school building for the purposes described in section 4(n) of this chapter;

the charter school or state educational institution shall offer to transfer the covered school building back to the school corporation that initially sold the covered school building to the charter school or state educational institution.

(b) If a school corporation described in subsection (a) declines the offer to transfer a covered school building back to the school corporation, the charter school or state educational institution may sell or transfer the covered school building to a third party. If a charter school or state educational institution sells or transfers a covered school building to a third party under this subsection, the charter school or state educational institution must transfer an amount equal to the gain in the property minus the adjusted basis (including costs of improvements to the covered school building) to the school corporation that initially sold the covered school building to the charter school or state educational institution. Gain and adjusted basis shall be determined in the manner prescribed by the Internal Revenue Code and the applicable Internal Revenue Service regulations and guidelines.

(c) A charter school or state educational institution that purchases a covered school building assumes total control of the covered school building and must maintain the covered school building, including utilities, insurance, maintenance, and repairs. Except as provided in subsection (d), in the event a:

(1) charter school does not use the covered school building for classroom instruction; or

(2) state educational institution does not use the covered school building for an academic purpose;

within three (3) years after acquiring the covered school building, the covered school building shall revert to the school corporation, which may sell or otherwise dispose of the covered school building under IC 36-1-11.

(d) In the event a:

(1) charter school does not use the covered school building for classroom instruction; or

(2) state educational institution does not use the covered school building for an academic purpose;

as a result of being engaged in ongoing renovations for an acquired covered school building, within three (3) years after acquiring an occupancy permit for the covered school building, the covered school building shall revert to the school corporation, which may sell or otherwise dispose of the covered school building under IC 36-1-11.

As added by P.L.270-2019, SEC.13. Amended by P.L.155-2021, SEC.5; P.L.189-2023, SEC.18; P.L.36-2024, SEC.6; P.L.135-2025, SEC.7; P.L.151-2026, SEC.14.

IC 20-26-7.1-5.3Sale or lease of covered school building to charter school; petition to transfer school building back to school corporation; cost of capital improvements Sec. 5.3. (a) This section applies to a covered school building to which the following apply:

(1) The covered school building was purchased or leased by a charter school under this chapter.

(2) The total student enrollment for in-person instruction in the school building in the current school year is at least ten percent (10%) less than the student enrollment for in-person instruction in the school building in a school year that precedes the current school year by five (5).

(b) A school corporation may not petition the department under subsection (c) within the first five (5) years after a charter school purchased or initially leased a covered school building under this chapter.

(c) Subject to subsection (f), if:

(1) the number of full-time equivalent students enrolled for in-person instruction in a school building on instructional days (as determined under IC 20-30-2) for instructional purposes for a school year is not at least fifty percent (50%) of the classroom design capacity of the school building; and

(2) it is consistent with the needs of the school corporation's strategic plan;

the school corporation that leased or sold the school building to the charter school may file a petition with the department requesting that the charter school transfer the school building back to the school corporation.

(d) Before filing a petition under subsection (c), the school corporation must give written notice to the charter school to determine whether an agreement can be reached regarding transferring the school building to the school corporation.

(e) A petition filed under this section is subject to the same procedures under IC 20-26-7-47 as a petition filed under IC 20-26-7-47(h).

(f) For purposes of determining classroom design capacity under subsection (c), if a charter school reconfigures a school building after the charter school leases or purchases the school building, the classroom design capacity must be determined based on the reconfigured school building and not the classroom design capacity of the school building at the time of the lease or purchase.

(g) As a condition precedent for a school corporation to receive a school building back from a charter school, the school corporation shall pay the charter school the cost of capital improvements the charter school made to the school building minus depreciation.

As added by P.L.189-2023, SEC.19. Amended by P.L.36-2024, SEC.7; P.L.151-2026, SEC.15.

IC 20-26-7.1-6Responsibility for expenses or debt during lease Sec. 6. During the term of a lease under section 4 of this chapter, the charter school or state educational institution is responsible for the direct expenses related to the covered school building leased, including utilities, insurance, maintenance, repairs, and remodeling. If the lease involves co-locating charter schools or a co-location with a state educational institution, the obligations under the lease of the covered school building shall be joint and several. The school corporation is responsible for any debt incurred for or liens that attached to the covered school building before the charter school or state educational institution leased the covered school building.

As added by P.L.270-2019, SEC.13. Amended by P.L.155-2021, SEC.6; P.L.189-2023, SEC.20.

IC 20-26-7.1-7RepealedAs added by P.L.270-2019, SEC.13. Amended by P.L.92-2020, SEC.28; P.L.155-2021, SEC.7. Repealed by P.L.189-2023, SEC.21.

IC 20-26-7.1-8RepealedAs added by P.L.270-2019, SEC.13. Repealed by P.L.189-2023, SEC.22.

IC 20-26-7.1-8.5RepealedAs added by P.L.155-2021, SEC.8. Repealed by P.L.189-2023, SEC.23.

IC 20-26-7.1-9Compliance Sec. 9. (a) The attorney general, in consultation with the department and state board, is authorized to take any action necessary to enforce a department or state board order under IC 20-26-7-47 or this chapter (or an order issued by the attorney general under this chapter (as effective before July 1, 2023)), including equitable actions to enjoin or mandate an action of a school corporation. No final court order shall be issued until the school corporation has had ninety (90) days after the department or state board has issued a final order to complete a sale or lease of the covered school building.

(b) If the attorney general does not commence legal action for an injunction to enforce a final order to make a covered school building available for purchase or lease under this chapter within one hundred (100) days after the date the final order was issued, a charter school or state educational institution that provides, any time before one hundred (100) days after the date the final order was issued, a written notice of interest to purchase or lease the school building to the:

(1) school corporation;

(2) department; and

(3) office of the attorney general;

may file a civil action to enforce this chapter.

(c) In addition to the remedy under subsections (a) and (b), if a school corporation does not comply with the requirements to sell or lease a covered school building under this chapter, the school corporation shall submit any proceeds from the sale of the covered school building to the state board, which shall be distributed equally between each charter school located in the attendance area of the school corporation. If no charter schools are located in the attendance area, the state board must use the proceeds to provide grants under the charter school and innovation grant program under IC 20-24-13. The attorney general is authorized to initiate any legal action necessary to ensure compliance with this chapter, including ensuring compliance by the department regarding providing notification to interested persons under section 4 of this chapter.

(d) If a school corporation transfers a covered school building in violation of this chapter, the transfer is void. The attorney general or a charter school may bring an action in court against the school corporation and the transferee to enjoin the violation of this chapter and void the transfer of the covered school building. If a charter school brings an action under this subsection and the court finds a school corporation transferred a covered school building in violation of this chapter, the court shall award reasonable attorney's fees to the charter school.

As added by P.L.270-2019, SEC.13. Amended by P.L.155-2021, SEC.9; P.L.189-2023, SEC.24; P.L.36-2024, SEC.8.

IC 20-26-7.1-10Violation Sec. 10. (a) The following may adopt rules under IC 4-22-2 to carry out this chapter:

(1) The department.

(2) The state board.

(3) The attorney general.

(b) A finding by the attorney general of a violation of this chapter (as effective before July 1, 2023) shall have the effect of a final order of the state board under this chapter (as effective after June 30, 2023).

(c) A finding by the attorney general under this chapter (as effective before July 1, 2023) does not determine whether there is a violation of this chapter (as effective after June 30, 2023).

As added by P.L.189-2023, SEC.25.

IC 20-26-7.1-11Liberal construction Sec. 11. IC 20-26-7-47 and this chapter shall be liberally construed to serve the legislative purpose of making closed covered school buildings available for use by charter schools.

As added by P.L.36-2024, SEC.9.

IC 20-26-8Chapter 8. Repealed[Pre-2005 Elementary and Secondary Education Recodification Citations:

20-26-8-1formerly 20-5-37-120-26-8-2formerly 20-5-37-220-26-8-3formerly 20-5-37-320-26-8-4formerly 20-5-37-420-26-8-5formerly 20-5-38-120-26-8-6formerly 20-5-38-220-26-8-7formerly 20-5-38-320-26-8-8formerly 20-5-39-120-26-8-9formerly 20-5-39-220-26-8-10formerly 20-5-39-320-26-8-11formerly 20-5-39-420-26-8-12formerly 20-5-39-520-26-8-13formerly 20-5-4-1.]Repealed by P.L.233-2015, SEC.132.

IC 20-26-9Chapter 9. School Breakfast and Lunch Programs

20-26-9-1"Participating school corporation" 20-26-9-2"Qualifying school building" 20-26-9-3"School" 20-26-9-4"School board" 20-26-9-5"School breakfast program" 20-26-9-6"School lunch program" 20-26-9-7Authority of secretary of education to accept and disburse federal funds for school lunch programs 20-26-9-8Establishment and operation of school lunch programs 20-26-9-8.5Census income exclusion for eligibility determination 20-26-9-9Sponsoring agencies for school lunch program; appointment 20-26-9-10Accounts and records; inspection, audits, and administrative reviews 20-26-9-11Repealed 20-26-9-12Authority to operate school kitchens and lunchrooms; appropriations; state aid contingent on federal aid 20-26-9-13Implementation of school breakfast program 20-26-9-14Compliance with national school breakfast program participation requirements 20-26-9-15Assistance of department 20-26-9-16Department to monitor programs and maintain records 20-26-9-17Department to establish guidelines 20-26-9-18Repealed 20-26-9-18.5Food and beverage nutritional requirements 20-26-9-19Repealed