Information Maintained by the Office of Code Revision Indiana Legislative Services Agency
IC 20-24-3
     Chapter 3. Establishment of Charter Schools

IC 20-24-3-1
Authorizer may grant charter
    
Sec. 1. An authorizer may grant a charter to an organizer to operate a charter school under this article.
As added by P.L.1-2005, SEC.8. Amended by P.L.280-2013, SEC.20.

IC 20-24-3-2
Authorizer may not grant charter
    
Sec. 2. An authorizer may not grant a charter to a for-profit organizer.
As added by P.L.1-2005, SEC.8. Amended by P.L.280-2013, SEC.21.

IC 20-24-3-2.5
Contracting with education service providers
    
Sec. 2.5. If a proposed charter school intends to contract with an education service provider for substantial educational services, management services, or both educational services and management services, the request for proposals shall require the applicants to provide the following:
        (1) Evidence of the education service provider's success in serving student populations similar to the targeted populations, including demonstrated academic achievement as well as successful management of nonacademic school functions, if applicable.
        (2) A term sheet setting forth the:
            (A) proposed duration of the service contract;
            (B) roles and responsibilities of the organizer, the school staff, and the education service provider;
            (C) performance evaluation measures and timelines;
            (D) compensation structure, including clear identification of all fees to be paid to the education service provider;
            (E) methods of contract oversight and enforcement;
            (F) investment disclosure; and
            (G) conditions for renewal and termination of the contract.
        (3) A disclosure statement to explain any existing or potential conflicts of interest between the organizer and the proposed education service provider or any affiliated business entities.
        (4) Assurance that the organizer will be structurally independent of the education service provider and shall set and approve school policies. The assurance must also provide that the terms of the service contract must be reached by the organizer and the education service provider through arms length negotiations in which the organizer must be represented by legal counsel. The legal counsel may not also represent the education service provider.
As added by P.L.280-2013, SEC.22.


IC 20-24-3-3
Organizer's dissolution; disposition of remaining assets and funds
    
Sec. 3. The organizer's constitution, charter, articles, or bylaws must contain a clause providing that upon dissolution:
        (1) the remaining assets of the charter school shall be distributed first to satisfy outstanding payroll obligations for employees of the charter school, then to creditors of the charter school, then to any outstanding debt to the common school fund; and
        (2) remaining funds received from the department shall be returned to the department not more than thirty (30) days after dissolution.
If the assets of the charter school are insufficient to pay all parties to whom the charter school owes compensation under subdivision (1), the priority of the distribution of assets may be determined by a court.
As added by P.L.1-2005, SEC.8. Amended by P.L.280-2013, SEC.23.

IC 20-24-3-4
Proposal to establish charter school; required contents
    
Sec. 4. (a) An organizer may submit to the authorizer a proposal to establish a charter school.
    (b) A proposal must contain at least the following information:
        (1) Identification of the organizer.
        (2) A description of the organizer's organizational structure and governance plan.
        (3) The following information for the proposed charter school:
            (A) Name.
            (B) Purposes.
            (C) Governance structure.
            (D) Management structure.
            (E) Educational mission goals.
            (F) Curriculum and instructional methods.
            (G) Methods of pupil assessment.
            (H) Admission policy and criteria, subject to IC 20-24-5.
            (I) School calendar.
            (J) Age or grade range of students to be enrolled.
            (K) A description of staff responsibilities.
            (L) A description of the physical plant.
            (M) Budget and financial plans.
            (N) Personnel plan, including methods for selection, retention, and compensation of employees.
            (O) Transportation plan.
            (P) Discipline program.
            (Q) Plan for compliance with any applicable desegregation order.
            (R) The date when the charter school is expected to:
                (i) begin school operations; and
                (ii) have students attending the charter school.
            (S) The arrangement for providing teachers and other staff

with health insurance, retirement benefits, liability insurance, and other benefits.
            (T) Any other applications submitted to an authorizer in the previous five (5) years.
        (4) The manner in which the authorizer must conduct an annual audit of the program operations of the charter school.
    (c) This section does not waive, limit, or modify the provisions of:
        (1) IC 20-29 in a charter school where the teachers have chosen to organize under IC 20-29; or
        (2) an existing collective bargaining agreement for noncertificated employees (as defined in IC 20-29-2-11).
As added by P.L.1-2005, SEC.8. Amended by P.L.91-2011, SEC.9; P.L.280-2013, SEC.24.

IC 20-24-3-5
Repealed
    
(Repealed by P.L.280-2013, SEC.25.)

IC 20-24-3-5.5
Public hearing by sponsor
    
Sec. 5.5. (a) This section applies to an authorizer that is not the executive of a consolidated city.
    (b) Before issuing a charter, the authorizer must conduct a public hearing concerning the establishment of the proposed charter school. At the public hearing, the governing body of the school corporation in which the proposed charter school will be located must be given an opportunity to comment on the effect of the proposed charter school on the school corporation, including any foreseen negative impacts on the school corporation.
As added by P.L.91-2011, SEC.10. Amended by P.L.280-2013, SEC.26.

IC 20-24-3-6
Granting of charter; provision of noncharter school required
    
Sec. 6. (a) Except as provided in subsection (b), if a governing body grants a charter to establish a charter school, the governing body must provide a noncharter school that students of the same age or grade levels may attend.
    (b) The department may waive the requirement that a governing body provide a noncharter school under subsection (a) upon the request of the governing body.
As added by P.L.1-2005, SEC.8.

IC 20-24-3-7
Revocation of charter
    
Sec. 7. The authorizer may revoke the charter of a charter school that does not, by the date specified in the charter:
        (1) begin school operations; and
        (2) have students attending the charter school.
As added by P.L.1-2005, SEC.8. Amended by P.L.280-2013, SEC.27.



IC 20-24-3-8
Repealed
    
(Repealed by P.L.280-2013, SEC.28.)

IC 20-24-3-9
Notification of acceptance or rejection of proposal
    
Sec. 9. An authorizer must notify an organizer that submits a proposal under section 4 of this chapter of the:
        (1) acceptance of the proposal; or
        (2) rejection of the proposal;
not later than seventy-five (75) days after the organizer submits the proposal.
As added by P.L.1-2005, SEC.8. Amended by P.L.169-2005, SEC.13; P.L.280-2013, SEC.29.

IC 20-24-3-10
Authorizer's notification of department; annual report by department
    
Sec. 10. (a) An authorizer must notify the department of the following:
        (1) Receipt of a proposal.
        (2) Acceptance of a proposal.
        (3) Rejection of a proposal, including the reasons for the rejection.
        (4) The length of time for which a charter is granted.
        (5) School goals, educational program design, and an education management organization operating a school, if applicable.
        (6) The name and address of the education management organization, and the name of the chief operating officer of the education management organization, if applicable.
    (b) The department shall annually do the following:
        (1) Compile the information received under subsection (a) into a report.
        (2) Submit the report in an electronic format under IC 5-14-6 to the legislative council.
As added by P.L.1-2005, SEC.8. Amended by P.L.91-2011, SEC.11; P.L.280-2013, SEC.30.

IC 20-24-3-11
Rejection of proposal; amendment or submission to another sponsor; appeal
    
Sec. 11. If an authorizer rejects a charter school proposal, the organizer may:
        (1) amend the charter school proposal and resubmit the proposal to the same authorizer;
        (2) submit a charter school proposal to another authorizer; or
        (3) appeal the decision to the charter school review panel established by section 12 of this chapter.
As added by P.L.1-2005, SEC.8. Amended by P.L.280-2013, SEC.31.


IC 20-24-3-12
Charter school review panel; composition; meeting to consider proposal; permissible findings
    
Sec. 12. (a) This section applies if the authorizer rejects a proposal.
    (b) The organizer may appeal the decision of the authorizer to the charter school review panel established by subsection (c).
    (c) The charter school review panel is established. The members of the panel are as follows:
        (1) The governor or the governor's designee.
        (2) The state superintendent, who shall chair the panel.
        (3) A member of the state board appointed by the state superintendent.
        (4) A person with financial management experience appointed by the governor.
        (5) A community leader with knowledge of charter school issues appointed jointly by the governor and the state superintendent.
A member shall serve a two (2) year term and may be reappointed to the panel upon expiration of the member's term.
    (d) All decisions of the panel shall be determined by a majority vote of the panel's members.
    (e) Upon the request of an organizer, the panel shall meet to consider the organizer's proposal and the authorizer's reasons for rejecting the proposal. The panel must allow the organizer and authorizer to participate in the meeting.
    (f) After the panel meets under subsection (e), the panel shall make one (1) of the following findings and issue the finding to the organizer and the authorizer:
        (1) A finding that supports the authorizer's rejection of the proposal.
        (2) A finding that:
            (A) recommends that the organizer amend the proposal; and
            (B) specifies the changes to be made in the proposal if the organizer elects to amend the proposal.
        (3) A finding that approves the proposal.
The panel shall issue the finding not later than forty-five (45) days after the panel receives the request for review.
    (g) If the panel makes a finding described in subsection (f)(1), the finding is final.
    (h) If the panel makes a finding described in subsection (f)(2), the organizer may amend the proposal according to the panel's recommendations and resubmit the proposal directly to the panel.
    (i) If the panel makes a finding described in subsection (f)(3), the proposal is considered conditionally approved. The approval shall be considered final upon delivery to the panel of written notice from the organizer and an eligible authorizer that the authorizer has agreed to serve as an authorizer for the proposal approved by the panel.
    (j) Proposals approved under this section shall not be counted under any numerical limits placed upon an authorizer or set of

authorizers.
As added by P.L.1-2005, SEC.8. Amended by P.L.280-2013, SEC.32.

IC 20-24-3-13
Repealed
    
(Repealed by P.L.91-2011, SEC.31.)

IC 20-24-3-14
University Authorizers
    
Sec. 14. (a) This section applies to university authorizers.
    (b) Except as provided in subsection (c), the ultimate responsibility for choosing to authorize a charter school and responsibilities for maintaining authorization rest with the university's board of trustees.
    (c) The university's board of trustees may vote to assign authorization authority and authorization responsibilities to another person or entity that functions under the direction of the university's board. A decision made under this subsection shall be communicated in writing to the department and the charter school review panel.
    (d) Before a university may authorize a charter school, the university must conduct a public meeting with public notice in the county where the charter school will be located.
As added by P.L.1-2005, SEC.8. Amended by P.L.280-2013, SEC.33.

IC 20-24-3-15
Repealed
    
(Repealed by P.L.91-2011, SEC.31.)

IC 20-24-3-16
Service as organizer and authorizer prohibited
    
Sec. 16. An entity or multiple divisions of the same entity may not serve simultaneously as both the organizer and the authorizer of the same charter school.
As added by P.L.1-2005, SEC.8. Amended by P.L.280-2013, SEC.34.

IC 20-24-3-17
Assignment of school corporation and school identification numbers
    
Sec. 17. (a) The department shall assign a school corporation identification number for each charter school established under this chapter.
    (b) If a charter school assigned a school corporation identification number under subsection (a) consists of more than one (1) campus, the department shall assign each charter school campus, in addition to the school corporation identification number under subsection (a), a separate school identification number.
As added by P.L.280-2013, SEC.35.