Engrossed Version, Senate Bill 0384

    January 9, 2012, read first time and referred to Committee on Education and Career Development.
    January 26, 2012, reported favorably _ Do Pass.
    January 30, 2012, read second time, ordered engrossed. Engrossed.
    February 1, 2012, read third time, passed. Yeas 42, nays 7.

HOUSE ACTION

February 13, 2012, read first time and referred to Committee on Education.
February 27, 2012, amended, reported _ Do Pass.

Digest Continued

status of each school and school corporation. Eliminates the probationary accreditation status. Provides that the department shall determine when a school or a school corporation has complied with certain legal standards. Provides that a reading deficiency remediation plan for a charter school is required to include and may only include a method for making determinant evaluations of reading skills by grade 3 and retention as a last resort for students reading below standard. Requires a student and a parent or guardian of the student to present an education plan to the principal if the student is a high school student transferring from a public school to a nonaccredited nonpublic school located in a private residence. Provides that the department may conduct an onsite evaluation of a school or school corporation to make a recommendation to the state board as to the legal compliance status of the school or school corporation. Makes conforming amendments. Sets forth provisions for the operation of a turnaround academy. Provides that a school corporation that is required to provide transportation to a nonpublic school student is required to provide the transportation to or from the point on the regular route that is nearest or most easily accessible to the nonpublic school from which the student can safely walk to and from the nonpublic school. Makes technical corrections.

February 27, 2012

Second Regular Session 117th General Assembly (2012)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in ~~this~~ ~~style~~ ~~type.~~
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or ~~this~~ ~~style~~ ~~type~~ reconciles conflicts between statutes enacted by the 2011 Regular Session of the General Assembly.

ENGROSSED

SENATE BILL No. 384

A BILL FOR AN ACT to amend the Indiana Code concerning education.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 20-19-2-8; (12)ES0384.1.1. -->     SECTION 1. IC 20-19-2-8, AS AMENDED BY P.L.145-2011, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 8. (a) In addition to any other powers and duties prescribed by law, the state board shall adopt rules under IC 4-22-2 concerning, but not limited to, the following matters:
        (1) The designation and employment of the employees and consultants necessary for the department. The state board shall fix the compensation of employees of the department, subject to the approval of the budget committee and the governor under IC 4-12-2.
        (2) The establishment and maintenance of standards and guidelines for media centers, libraries, instructional materials centers, or any other area or system of areas in a school where a full range of information sources, associated equipment, and services from professional media staff are accessible to the school community. With regard to library automation systems, the state board may only adopt rules that meet the standards established by

the state library board for library automation systems under IC 4-23-7.1-11(b).
        (3) The establishment and maintenance of standards for student personnel and guidance services.
        (4) This subdivision expires December 31, 2011. The establishment and maintenance of minimum standards for driver education programs (including classroom instruction and practice driving) and equipment. Classroom instruction standards established under this subdivision must include instruction about:
            (A) railroad-highway grade crossing safety; and
            (B) the procedure for participation in the human organ donor program;
        and must provide, effective July 1, 2010, that the classroom instruction may not be provided to a child less than fifteen (15) years and one hundred eighty (180) days of age.
        (5) The inspection of all public schools in Indiana to determine the condition of the schools. The state board shall establish standards governing the accreditation of public schools. Observance of:
            (A) IC 20-31-4 before July 1, 2013, or IC 20-31-4.5 after June 30, 2013;
            (B) IC 20-28-5-2;
            (C) IC 20-28-6-3 through IC 20-28-6-7;
            (D) IC 20-28-11.5; and
            (E) IC 20-31-3, IC 20-32-4, IC 20-32-5, IC 20-32-6, and IC 20-32-8;
        is a prerequisite to the accreditation of a school. Local public school officials shall make the reports required of them and otherwise cooperate with the state board regarding required inspections. Nonpublic schools may also request the inspection for classification purposes. Compliance with the building and site guidelines adopted by the state board is not a prerequisite of accreditation.
        (6) The distribution of funds and revenues appropriated for the support of schools in the state.
        (7) The state board may not establish an accreditation system for nonpublic schools that is less stringent than the accreditation system for public schools.
        (8) A separate system for recognizing nonpublic schools under IC 20-19-2-10. Recognition of nonpublic schools under this subdivision constitutes the system of regulatory standards that apply to nonpublic schools that seek to qualify for the system of

recognition.
        (9) The establishment and enforcement of standards and guidelines concerning the safety of students participating in cheerleading activities.
        (10) Subject to IC 20-28-2, the preparation and licensing of teachers.
    (b) Before final adoption of any rule, the state board shall make a finding on the estimated fiscal impact that the rule will have on school corporations.

SOURCE: IC 20-24-8-5; (12)ES0384.1.2. -->     SECTION 2. IC 20-24-8-5, AS AMENDED BY P.L.90-2011, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 5. The following statutes and rules and guidelines adopted under the following statutes apply to a charter school:
        (1) IC 5-11-1-9 (required audits by the state board of accounts).
        (2) IC 20-39-1-1 (unified accounting system).
        (3) IC 20-35 (special education).
        (4) IC 20-26-5-10 (criminal history).
        (5) IC 20-26-5-6 (subject to laws requiring regulation by state agencies).
        (6) IC 20-28-10-12 (nondiscrimination for teacher marital status).
        (7) IC 20-28-10-14 (teacher freedom of association).
        (8) IC 20-28-10-17 (school counselor immunity).
        (9) For conversion charter schools only, IC 20-28-6, IC 20-28-7.5, IC 20-28-8, IC 20-28-9, and IC 20-28-10.
        (10) IC 20-33-2 (compulsory school attendance).
        (11) IC 20-33-3 (limitations on employment of children).
        (12) IC 20-33-8-19, IC 20-33-8-21, and IC 20-33-8-22 (student due process and judicial review).
        (13) IC 20-33-8-16 (firearms and deadly weapons).
        (14) IC 20-34-3 (health and safety measures).
        (15) IC 20-33-9 (reporting of student violations of law).
        (16) IC 20-30-3-2 and IC 20-30-3-4 (patriotic commemorative observances).
        (17) IC 20-31-3, IC 20-32-4, IC 20-32-5, IC 20-32-6, IC 20-32-8, and IC 20-32-8.5, as provided in IC 20-32-8.5-2(b) or ~~any~~ ~~other~~ ~~statute,~~ ~~rule,~~ or ~~guideline~~ ~~related~~ to ~~standardized~~ ~~testing~~ ~~(assessment~~ ~~programs,~~ ~~including~~ ~~remediation~~ ~~under~~ ~~the~~ ~~assessment~~ ~~programs).~~ (academic standards, accreditation, assessment, and remediation).
        (18) IC 20-33-7 (parental access to education records).
        (19) IC 20-31 (accountability for school performance and improvement).

(20) IC 20-30-5-19 (personal financial responsibility instruction).

SOURCE: IC 20-26-15-5; (12)ES0384.1.3. -->     SECTION 3. IC 20-26-15-5, AS ADDED BY P.L.1-2005, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 5. Notwithstanding any other law, the operation of the following is suspended for a freeway school corporation or a freeway school if the governing body of the school corporation elects to have the specific statute or rule suspended in the contract:
        (1) The following statutes and rules concerning curriculum and instructional time:
            IC 20-30-2-7
            IC 20-30-5-8
            IC 20-30-5-9
            IC 20-30-5-11
            511 IAC 6-7-6
            ~~511~~ ~~IAC 6.1-3-4~~
            511 IAC 6.1-5-0.5
            511 IAC 6.1-5-1
            511 IAC 6.1-5-2.5
            511 IAC 6.1-5-3.5
            511 IAC 6.1-5-4.
        (2) The following rule concerning pupil/teacher ratios:
            511 IAC 6.1-4-1.
        (3) The following statutes and rules concerning textbooks:
            IC ~~20-20-5-1~~ ~~through~~ IC ~~20-20-5-4~~
            IC ~~20-20-5-23~~
            IC 20-26-12-24
            IC 20-26-12-26
            IC ~~20-26-12-28~~
            IC 20-26-12-1
            IC 20-26-12-2
            511 IAC 6.1-5-5.
        (4) 511 IAC 6-7, concerning graduation requirements.
        (5) IC 20-31-4 before July 1, 2013, or IC 20-31-4.5 after June 30, 2013, concerning the performance based accreditation system.
        (6) IC 20-32-5, concerning the ISTEP program established under IC 20-32-5-15, if an alternative locally adopted assessment program is adopted under section 6(7) of this chapter.

SOURCE: IC 20-31-4.5; (12)ES0384.1.10. -->     SECTION 10. IC 20-31-4.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]:
     Chapter 4.5. Performance Based Accreditation
    Sec. 1. This chapter applies after June 30, 2013.
     Sec. 2. As used in this chapter, "legal standards" means Indiana statutes and rules adopted by the state board that apply to each school.
     Sec. 3. (a) A school in Indiana may be accredited:
        (1) under a performance based accreditation system approved by the state board; or
        (2) by a national or regional accreditation agency that is approved by the state board.
    (b) The state board shall establish the following:
        (1) A system for approving agencies or entities that seek to accredit schools in Indiana under this chapter.
        (2) A procedure for determining whether a school is making progress toward meeting the criteria for accreditation by a national or regional accreditation agency approved by the state board.
    (c) The department shall establish a schedule for verifying compliance with legal standards under section 7 this chapter and shall report noncompliance to the state board.
    (d) The state board shall verify compliance with legal standards and shall adopt rules to establish consequences for noncompliance. Consequences for failure to comply with legal standards may include but are not limited to compliance reports to the board, withholding of state tuition support payments, or other actions considered appropriate by the board to facilitate compliance with the legal standards.
    (e) The department shall establish a schedule for accreditation by approved agencies or entities under subsection (b).
    (f) The department shall publish on its Internet web site the accreditation status and legal compliance status of each school and school corporation.
     Sec. 4. The state board shall recognize the following accreditation levels:
        (1) Full accreditation status.
        (2) Not fully accredited.
     Sec. 5. (a) When all the schools in a school corporation achieve full accreditation status, the department shall recognize full accreditation status of the school corporation.
    (b) When a school has received accreditation from an accrediting agency approved by the state board, the department shall recognize the full accreditation status of the school.
    Sec. 6. The state board shall determine which of the benchmarks

and indicators of performance listed in IC 20-20-8-8 are appropriate benchmarks to be followed by an accrediting agency when accrediting schools.
     Sec. 7. The department shall determine whether a school and a school corporation have complied with the following legal standards:
        (1) Health and safety requirements.
        (2) Minimum time requirements for school activity.
        (3) Curriculum offerings.
        (4) Development and implementation of a staff evaluation plan under IC 20-28-11.5.
        (5) Completion of a school improvement plan that complies with requirements developed by the state board and:
            (A) focuses on student academic performance and growth; and
            (B) is consistent with metrics for improvement.
        (6) Local salary scale under IC 20-28-9-1.
    Sec. 8. (a) If the department verifies that a school or a school corporation has not complied with all the legal standards under section 7 of this chapter, the department may conduct an onsite evaluation of the school or school corporation to make a recommendation to the state board as to the legal compliance status of the school or school corporation.
    (b) The department may not publish or otherwise make available for public inspection any information concerning a school's compliance with legal standards under section 7 of this chapter, the meeting of performance expectations under section 6 of this chapter, the assignment of an onsite review panel by the department under this section, or the recommended accreditation status of the school until all onsite reviews have taken place and recommendations to the state board concerning the accreditation status of the school have been made.
     Sec. 9. During its onsite evaluation, the department shall verify compliance with the legal standards for accreditation under section 7 of this chapter.
     Sec. 10. Upon receipt of the department's recommendation under section 8 of this chapter, the state board shall compel the school's or school corporation's compliance with legal standards. If a school or school corporation refuses to come into compliance, it shall be recognized as not fully accredited.
     Sec. 11. The state board shall adopt rules under IC 4-22-2 necessary to implement this chapter.

SOURCE: IC 20-31-9.5-1; (12)ES0384.1.11. -->     SECTION 11. IC 20-31-9.5-1, AS ADDED BY P.L.229-2011, SECTION 190, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) None of the following may be considered a school employer under IC 20-29-6 with respect to a turnaround academy:
        (1) The state.
        (2) The state board.
        (3) A special management team assigned by the state board under IC ~~20-31-9-4~~ IC 20-31-9 to operate a school as a turnaround academy.
    (b) A special management team assigned under IC ~~20-31-9-4~~ IC 20-31-9 to operate a school as a turnaround academy shall make all personnel decisions in the school. In operating the school as a turnaround academy under this chapter, the special management team is not bound by a contract entered into under IC 20-29.
     (c) A special management team is not required to employ teachers and administrators through teacher contracts established by the state superintendent under IC 20-28-6-3.
    (d) A special management team may exercise any authority granted by the state board under IC 20-31-9.
     (e) If the state board enters into a contract with a special management team under this chapter, the state board may require the special management team to secure a performance bond, in an amount determined by the state board, before the contract is finalized.

SOURCE: IC 20-31-9.5-3. -->     SECTION 12. IC 20-31-9.5-3, AS ADDED BY P.L.229-2011, SECTION 190, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Turnaround academies are eligible to receive building and technology loans administered by the state board from the common school fund.
    (b) A student who attends a turnaround academy or another school subject to intervention under this chapter remains, under IC 20-43-4-1, an eligible pupil of the school corporation where the student has legal settlement.
    (c) The state board, based upon recommendations received from the department, shall determine the amounts of state tuition support and federal funds that are necessary to fund options for improvement implemented by the state board under this chapter with respect to each turnaround academy.
    (d) The department shall do the following:
        (1) Withhold from state tuition support and federal funds otherwise to be distributed to the school corporation of the school

operated as a turnaround academy under this chapter the amount determined under subsection (c) for the affected students. The amount withheld under this subdivision may not exceed the total per pupil funding for the affected students. Tuition support includes basic tuition support (as defined in IC 20-43-6), special education grants (as defined in IC 20-43-7), career and technical education grants (as defined in IC 20-43-8), primetime program funds (as defined in IC 20-43-9), other tuition support grants (as defined in IC 20-43-10), and any grants funded by the general assembly that are attributable to the affected students.
(2) Enter into any contracts necessary to implement the options for improvement implemented for the school by the state board, including contracts with a special management team assigned under IC ~~20-31-9-4~~ IC 20-31-9 to operate the school as a an operated turnaround academy.
(3) Make payments under the contracts entered into under subdivision (2) with funds withheld from the school corporation under subdivision (1).

SOURCE: IC 20-31-9.5-4; (12)ES0384.1.13. -->     SECTION 13. IC 20-31-9.5-4, AS ADDED BY P.L.229-2011, SECTION 190, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Except as provided in subsection (e), any student who lives in the attendance area served by a school that is operated as a turnaround academy under this chapter may attend the turnaround academy. The turnaround academy may not refuse enrollment to a student who lives in the attendance area.
     (b) A turnaround academy may enroll a student who resides anywhere in Indiana.
    (c) If a student who attends a turnaround academy and does not live in the attendance zone served by the turnaround academy chooses to participate in academic or athletic offerings, the transferor school corporation or an association (as defined in IC 20-26-14-1) may not inhibit the student's ability to participate in any level of academic or athletic offerings of the turnaround academy, unless the transfer is a result of undue influence by the turnaround academy's administrators or athletic coaches.
    (d) A school corporation is not required to provide transportation for a student who attends a turnaround academy and does not live in the attendance zone served by the turnaround academy, except as required under 42 U.S.C. 11431, any applicable court desegregation order, or the individual education plan of a student who receives special education services as required under

34 CFR 300 and 511 IAC 7.
(e) Subsection (a) does not apply to a magnet school that becomes a turnaround academy. A magnet school that becomes a turnaround academy shall continue to apply the admissions policies previously established for and consistent with the operation of the magnet school.

SOURCE: IC 20-31-9.5-7; (12)ES0384.1.14. -->     SECTION 14. IC 20-31-9.5-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) A school corporation shall continue debt service payments on school corporation debt that is attributable to a turnaround academy.
    (b) If the state board assigns a special management team to a school, the state board shall determine the appropriate parties to enter into a contract that includes the following provisions:
        (1) The length of the contract.
        (2) The level of services provided.
        (3) The entity responsible for providing necessary services to the school and students in the school.
        (4) Any other provisions the parties consider necessary.
    (c) If the state board assigns a lead partner to a school, the department, the lead partner, and the school corporation shall enter into a contract that includes the following provisions:
        (1) The length of the contract.
        (2) Consideration.
        (3) Performance goals, which may not be less rigorous than those established under IC 20-31-8.
        (4) Cancellation procedures.
        (5) Renewal procedures.
        (6) Any other provisions the department and the special management team consider necessary.
    (d) A special management team and a school corporation may enter into a contract for the school corporation to provide any services for a school that are in the best interest of the students who attend the school. A contract must specify the length of time, level of services, and entity responsible for providing necessary services, including the following services:
        (1) Food service.
        (2) Educational and administrative technology and technology support.
        (3) Special education services.
        (4) Career and technical education services.
        (5) Custodial services.
        (6) Instructional services in a particular curriculum area.
        (7) Textbooks and supplemental materials.
        (8) Student services.
        (9) Police and probation services.
        (10) Any other provisions the school corporation and the special management team consider necessary.
    (e) A school corporation and a special management team may enter into a contract for additional services.
    (f) The state board shall resolve any disputes that arise in the negotiation or execution of a contract under subsections (b), (c), (d), and (e). The decision of the state board is the final administrative decision.
    (g) A school corporation in which a special management team is assigned to operate an operated turnaround academy shall offer the special management team the opportunity to assume any lease or contract for equipment, including photocopying equipment and computer hardware.

SOURCE: IC 20-31-9.5-8; (12)ES0384.1.15. -->     SECTION 15. IC 20-31-9.5-8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) A special management team shall employ teachers, other school employees, and independent contractors that are:
        (1) described in the contract between the department and the special management team; and
        (2) necessary for the special management team to fulfill the special management team's responsibilities under this chapter.
    (b) Individuals employed by the special management team under this section are entitled to participate in insurance benefits offered by the special management team or offered to state employees.
    (c) Individuals employed by the special management team under this section are entitled to participate in:
        (1) a retirement program offered by the special management team;
        (2) the state teachers' retirement fund created by IC 5-10.4; or
        (3) the public employees' retirement fund created by IC 5-10.3.

SOURCE: IC 20-31-9.5-9; (12)ES0384.1.16. --> SECTION 16. IC 20-31-9.5-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) A school corporation

may not take an action adverse to a special management team's operation of a school, services provided by lead partners, or implementation of an intervention ordered by the state board.
    (b) A school corporation may not take an action to dispose of or cloud the title of real property on which a school that is subject to this chapter is located.
    (c) A school corporation may not remove or dispose of personal property located in, or located outside and assigned to, a school that is subject to this chapter.
    (d) If the state board determines that a school corporation has taken an action prohibited under subsections (a) through (c), the state board may take one (1) or more of the following actions:
        (1) Order the department to withhold federal or state funds to which the school corporation would otherwise be entitled to facilitate the full implementation of the special management team's operation of a school, the lead partner's assistance, or other intervention.
        (2) Authorize the department to pursue any available legal or equitable remedies.
        (3) Amend the intervention.
        (4) Order the special management team or lead partner to carry out the intervention notwithstanding the school corporation's adverse action.

SOURCE: IC 20-31-9.5-10; (12)ES0384.1.17. -->     SECTION 17. IC 20-31-9.5-10 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) A school corporation may not change the assignment of students to schools in the school corporation in a manner that changes significantly the number or grade levels of students assigned to a school that is subject to this chapter without the agreement of the special management team assigned to the school.
    (b) If the special management team agrees to accept additional students under this chapter, the special management team may apply to the state board for, and the state board may determine that the special management team needs, additional funds to operate the school.
    (c) The department shall:
        (1) withhold the amount of funds determined under subsection (b) from state support that would otherwise be distributed to the school corporation; and
        (2) distribute the amount of funds determined under subsection (b) to the special management team.

SOURCE: IC 20-32-8.5-2; (12)ES0384.1.19. -->     SECTION 19. IC 20-32-8.5-2, AS ADDED BY P.L.109-2010, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2. (a) The plan required by this chapter must include the following:
        (1) Reading skill standards for grade 1 through grade 3.
        (2) An emphasis on a method for making determinant evaluations by grade 3 that might require remedial action for the student, including retention as a last resort, after other methods of remediation have been evaluated or used, or both, if reading skills are below the standard. Appropriate consultation with parents or guardians must be part of the plan.
        (3) The fiscal impact of each component of the plan, if any. In determining whether a component has a fiscal impact, consideration shall be given to whether the component will increase costs to the state or a school corporation or require the state or school corporation to reallocate resources.
     (b) For a charter school, as defined in IC 20-24-1-4, the plan must include and may only include a method for making determinant evaluations of reading skills by grade 3 and retention as a last resort for students reading below standard as measured by the evaluation or assessment.

SOURCE: IC 20-33-2-28.6; (12)ES0384.1.20. --> SECTION 20. IC 20-33-2-28.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 28.6. (a) This section applies to a high school student who is transferring to a nonaccredited nonpublic school located in a private residence.
(b) Before a student withdraws from a public school, the student and the parent or guardian of the student must present an education plan to the principal of the public school. The principal must inform the student and the parent or guardian of the student of the parent's or guardian's minimum educational responsibilities for the student, including compulsory attendance, and that failure to ensure compliance with the minimum educational responsibilities could result in a charge of neglect of a dependent under IC 35-46-1-4. If the student and the parent or guardian of

the student fail to provide an education plan to the principal, the principal shall report the student to the bureau of motor vehicles for action under section 28.5(g) of this chapter.

SOURCE: IC 21-12-6-5; (12)ES0384.1.21. -->     SECTION 21. IC 21-12-6-5, AS AMENDED BY P.L.169-2011, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 5. (a) To qualify to participate in the program, a student must meet the following requirements:
        (1) Be a resident of Indiana.
        (2) Be:
            (A) enrolled in grade 7 or 8 at a:
                (i) public school; or
                (ii) nonpublic school that is accredited either by the state board of education or by a national or regional accrediting agency whose accreditation is accepted as a school improvement plan under IC 20-31-4-2 before July 1, 2013, or IC 20-31-4.5-3 after June 30, 2013; or
            (B) otherwise qualified under the rules of the commission that are adopted under IC 21-11-9-4 to include students who are in grades other than grade 8 as eligible students.
        (3) Be a member of a household with an annual income of not more than the amount required for the individual to qualify for free or reduced priced lunches under the national school lunch program, as determined for the immediately preceding taxable year for the household.
        (4) Agree, in writing, together with the student's custodial parents or guardian, that the student will:
            (A) graduate from a secondary school located in Indiana that meets the admission criteria of an eligible institution;
            (B) not illegally use controlled substances (as defined in IC 35-48-1-9);
            (C) not commit a crime or an infraction described in IC 9-30-5;
            (D) not commit any other crime or delinquent act (as described in IC 31-37-1-2 or IC 31-37-2-2 through IC 31-37-2-5 (or IC 31-6-4-1(a)(1) through IC 31-6-4-1(a)(5) before their repeal));
            (E) timely apply, when the eligible student is a senior in high school:
                (i) for admission to an eligible institution; and
                (ii) for any federal and state student financial assistance available to the eligible student to attend an eligible institution;

            (F) achieve a cumulative grade point average upon graduation of:
                (i) at least 2.0, if the student graduates from high school before July 1, 2014; and
                (ii) at least 2.5, if the student graduates from high school after June 30, 2014;
            on a 4.0 grading scale (or its equivalent if another grading scale is used) for courses taken during grades 9, 10, 11, and 12; and
            (G) participate in an academic success program required under the rules adopted by the commission and the commission for higher education, if the student initially enrolls in the program after June 30, 2011.
    (b) A student is also qualified to participate in the program if the student:
        (1) before or during grade 7 or grade 8, is placed by or with the consent of the department of child services, by a court order, or by a child placing agency in:
            (A) a foster family home;
            (B) the home of a relative or other unlicensed caretaker;
            (C) a child caring institution; or
            (D) a group home;
        (2) agrees in writing, together with the student's caseworker (as defined in IC 31-9-2-11), to the conditions set forth in subsection (a)(4); and
        (3) except as provided in subdivision (2), otherwise meets the requirements of subsection (a).
    (c) The commission may require that an applicant apply electronically to participate in the program using an online Internet application on the commission's web site.