Information Maintained by the Office of Code Revision Indiana Legislative Services Agency
IC 20-24-7
     Chapter 7. Fiscal Matters

IC 20-24-7-1
Organizer as fiscal agent
    
Sec. 1. (a) The organizer is the fiscal agent for the charter school.
    (b) The organizer has exclusive control of:
        (1) funds received by the charter school; and
        (2) financial matters of the charter school.
    (c) The organizer shall maintain separate accountings of all funds received and disbursed by the charter school.
As added by P.L.1-2005, SEC.8.

IC 20-24-7-2
Charter school student information; distribution of state funds
    
Sec. 2. (a) Not later than each of the dates established by the department for determining ADM under IC 20-43-4-3, the organizer shall submit to the department the following information on a form prescribed by the department:
        (1) The number of students enrolled in the charter school.
        (2) The name and address of each student.
        (3) The name of the school corporation in which the student has legal settlement.
        (4) The name of the school corporation, if any, that the student attended during the immediately preceding school year.
        (5) The grade level in which the student will enroll in the charter school.
The department shall verify the accuracy of the information reported.
    (b) The department shall distribute state tuition support distributions to the organizer. The department shall make a distribution under this subsection at the same time and in the same manner as the department makes a distribution of state tuition support under IC 20-43-2 to other school corporations.
As added by P.L.1-2005, SEC.8. Amended by P.L.2-2006, SEC.106; P.L.146-2008, SEC.460; P.L.205-2013, SEC.229.

IC 20-24-7-3
Calculation and distribution of state funds to conversion charter school
    
Sec. 3. (a) This section applies to a conversion charter school.
    (b) Beginning not more than sixty (60) days after the department receives the information reported under section 2(a) of this chapter, the department shall distribute to the organizer:
        (1) tuition support and other state funding for any purpose for students enrolled in the conversion charter school;
        (2) a proportionate share of state and federal funds received:
            (A) for students with disabilities; or
            (B) for staff services for students with disabilities;
        enrolled in the conversion charter school; and
        (3) a proportionate share of funds received under federal or

state categorical aid programs for students who are eligible for the federal or state categorical aid and are enrolled in the conversion charter school;
for the second six (6) months of the calendar year in which the conversion charter school is established. The department shall make a distribution under this subsection at the same time and in the same manner as the department makes a distribution to the governing body of the school corporation in which the conversion charter school is located. A distribution to the governing body of the school corporation in which the conversion charter school is located is reduced by the amount distributed to the conversion charter school. This subsection does not apply to a conversion charter school after December 31 of the calendar year in which the conversion charter school is established.
As added by P.L.1-2005, SEC.8. Amended by P.L.2-2006, SEC.107; P.L.146-2008, SEC.461; P.L.205-2013, SEC.230.

IC 20-24-7-4
Costs of services provided by school corporation; administrative fees for authorizers
    
Sec. 4. (a) Services that a school corporation provides to a charter school, including transportation, may be provided at not more than one hundred three percent (103%) of the actual cost of the services.
    (b) This subsection applies to an authorizer that is a state educational institution described in IC 20-24-1-2.5(2). In a state fiscal year, a state educational institution may receive from the organizer of a charter school authorized by the state educational institution an administrative fee equal to not more than three percent (3%) of the total amount the organizer receives during the state fiscal year from basic tuition support (as defined in IC 20-43-1-8).
    (c) This subsection applies to the executive of a consolidated city that authorizes a charter school. In a state fiscal year, the executive may collect from the organizer of a charter school authorized by the executive an administrative fee equal to not more than three percent (3%) of the total amount the organizer receives during the state fiscal year for basic tuition support.
    (d) This subsection applies to an authorizer that is a nonprofit college or university that is approved by the state board of education. In a state fiscal year, a private college or university may collect from the organizer of a charter school authorized by the private college or university an administrative fee equal to not more than three percent (3%) of the total amount the organizer receives during the state fiscal year for basic tuition support.
    (e) This subsection applies to the charter board. In a state fiscal year, the charter school board may collect from the organizer of a charter school authorized by the charter board an administrative fee equal to not more than three percent (3%) of the total amount the organizer receives during the state fiscal year for basic tuition support.
    (f) An authorizer's administrative fee may not include any costs

incurred in delivering services that a charter school may purchase at its discretion from the authorizer. The authorizer shall use its funding provided under this section exclusively for the purpose of fulfilling authorizing obligations.
    (g) Except for oversight services, a charter school may not be required to purchase services from its authorizer as a condition of charter approval or of executing a charter contract, nor may any such condition be implied.
    (h) A charter school may choose to purchase services from its authorizer. In that event, the charter school and authorizer shall execute an annual service contract, separate from the charter contract, stating the parties' mutual agreement concerning the services to be provided by the authorizer and any service fees to be charged to the charter school. An authorizer may not charge more than market rates for services provided to a charter school.
    (i) Not later than ninety (90) days after the end of each fiscal year, each authorizer shall provide to each charter school it authorizes an itemized accounting of the actual costs of services purchased by the charter school from the authorizer. Any difference between the amount initially charged to the charter school and the actual cost shall be reconciled and paid to the owed party. If either party disputes the itemized accounting, any charges included in the accounting, or charges to either party, either party may request a review by the department. The requesting party shall pay the costs of the review.
As added by P.L.1-2005, SEC.8. Amended by P.L.2-2006, SEC.108; P.L.146-2008, SEC.462; P.L.91-2011, SEC.18; P.L.205-2013, SEC.231.

IC 20-24-7-5
Grants and private and federal funds
    
Sec. 5. (a) An organizer may apply for and accept for a charter school:
        (1) independent financial grants; and
        (2) funds from public or private sources other than the department.
    (b) An organizer shall make all applications, enter into all contracts, and sign all documents necessary for the receipt by a charter school of aid, money, or property from the federal government.
As added by P.L.1-2005, SEC.8.

IC 20-24-7-6
Distribution of share of school corporation's capital project fund
    
Sec. 6. With the approval of a majority of the members of the governing body, a school corporation may distribute a proportionate share of the school corporation's capital project fund to a charter school.
As added by P.L.1-2005, SEC.8.


IC 20-24-7-6.5
Repealed
    
(Repealed by P.L.205-2013, SEC.232.)

IC 20-24-7-7
Building projects; applicability of bidding and wage determination laws
    
Sec. 7. When a charter school uses public funds for the construction, reconstruction, alteration, or renovation of a public building, bidding and wage determination laws and all other statutes and rules apply.
As added by P.L.1-2005, SEC.8.

IC 20-24-7-8
Sponsor's right to receive financial reports from organizer
    
Sec. 8. An authorizer may request and receive financial reports concerning a charter school from the organizer at any time.
As added by P.L.1-2005, SEC.8. Amended by P.L.280-2013, SEC.43.

IC 20-24-7-9
Termination of charter; distribution of funds; repayment of obligations
    
Sec. 9. (a) This section applies if:
        (1) an authorizer:
            (A) revokes a charter before the end of the term for which the charter is granted; or
            (B) does not renew a charter; or
        (2) a charter school otherwise terminates its charter before the end of the term for which the charter is granted.
    (b) Any state funds that remain to be distributed to the charter school in the state fiscal year in which an event described in subsection (a) occurs shall be distributed as follows:
        (1) First, to the common school loan fund to repay any existing obligations of the charter school under IC 20-49-7 (repealed).
        (2) Second, to the entities that distributed the funds to the charter school. A distribution under this subdivision shall be on a pro rata basis.
    (c) If the funds described in subsection (b) are insufficient to repay all existing obligations of the charter school under IC 20-49-7 (repealed), the state shall repay any remaining obligations of the charter school under IC 20-49-7 (repealed) from the amount appropriated for state tuition support distributions.
As added by P.L.1-2005, SEC.8. Amended by P.L.2-2006, SEC.109; P.L.146-2008, SEC.463; P.L.205-2013, SEC.233.

IC 20-24-7-10
Federal funds for charter schools; department's responsibilities
    
Sec. 10. (a) The department shall carry out a program to identify all federal funds for which a charter school is eligible.
    (b) The department shall apply for all federal funds that are

available for charter schools and for which Indiana is eligible.
    (c) Upon receiving notice under IC 20-24-3-10 from an authorizer that a charter has been approved, the department shall immediately inform the organizer of the organizer's potential eligibility for federal charter school start-up grants.
    (d) The department shall distribute federal charter school start-up grants to eligible organizers in a timely manner according to the department's published guidelines for distributing the grants.
    (e) The department shall compile a biannual report and submit the report to the state office of federal grants and procurement and to charter school organizers and authorizers. The report submitted under this subsection must contain the following information for grants distributed under this section:
        (1) Beginning and end dates for each grant cycle.
        (2) The dates on which:
            (A) grant applications and requests for renewal were received; and
            (B) grants were awarded.
        (3) The amount of each grant awarded.
As added by P.L.169-2005, SEC.14. Amended by P.L.280-2013, SEC.44.

IC 20-24-7-11
Matching funds for federal grants to charter schools
    
Sec. 11. (a) If the United States Department of Education approves a new competition for states to receive matching funds for charter school facilities, the department shall pursue this federal funding.
    (b) To increase the state's opportunity to receive matching funds from the United States Department of Education, the department shall develop a facilities incentive grants program before January 1, 2010.
    (c) The department shall use the priority criteria set forth in 21 U.S.C. 7221d(b) and 34 CFR 226.12 through 34 CFR 226.14 to develop the facilities incentive grants program.
As added by P.L.169-2005, SEC.15 and P.L.246-2005, SEC.129. Amended by P.L.182-2009(ss), SEC.314; P.L.91-2011, SEC.19.

IC 20-24-7-12
Repealed
    
(Repealed by P.L.146-2008, SEC.807.)

IC 20-24-7-13
Virtual charter schools; funding
    
Sec. 13. (a) As used in this section, "virtual charter school" means any charter school, including a conversion charter school, that provides for the delivery of more than fifty percent (50%) of instruction to students through:
        (1) virtual distance learning;
        (2) online technologies; or


        (3) computer based instruction.
    (b) A virtual charter school may apply for
authorization with any statewide sponsor in accordance with the authorizer's guidelines.
    (c) For state fiscal years beginning after June 30, 2013, a virtual charter school is entitled to receive funding in a month from the state in an amount equal to the sum of:
        (1) the product of:
            (A) the number of students included in the virtual charter school's current ADM; multiplied by
            (B) the result of:
                (i) ninety percent (90%) of the school's foundation amount determined under IC 20-43-5-4; divided by
                (ii) twelve (12); plus
        (2) the total of any:
            (A) special education grants under IC 20-43-7;
            (B) career and technical education grants under IC 20-43-8;
            (C) honor grants under IC 20-43-10;
            (D) complexity grants under IC 20-43-13; and
            (E) full-day kindergarten grants under IC 20-43-14;
        to which the virtual charter school is entitled for the month.
For state fiscal years beginning after June 30, 2013, a virtual charter school is entitled to receive special education grants under IC 20-43-7 calculated in the same manner as special education grants are calculated for other school corporations.
    (d) The
state board shall adopt rules under IC 4-22-2 to govern the operation of virtual charter schools.
    (e) The department
, with the approval of the state board, shall before December 1 of each year submit an annual report to the budget committee concerning the program under this section.
    (f) Each school year, at least sixty percent (60%) of the students who are enrolled in virtual charter schools under this section for the first time must have been included in the state's fall count of ADM conducted in the previous school year.
As added by P.L.182-2009(ss), SEC.315. Amended by P.L.1-2010, SEC.78; P.L.91-2011, SEC.20; P.L.229-2011, SEC.171; P.L.205-2013, SEC.234.

IC 20-24-7-13.5
Funding for certain charter schools for adults; exceptions
    
Sec. 13.5. (a) This section applies to the following charter schools:
        (1) The Excel Centers for Adult Learners that is located in Indianapolis, is sponsored or authorized by the mayor of Indianapolis, and that is operating as of May 1, 2013.
        (2) The Anderson Excel Center that is sponsored or authorized by the charter board and that is operating as of May 1, 2013.
        (3) The Christel House Academy DOR center that is located in Indianapolis, is sponsored or authorized by the mayor of Indianapolis, and that is operating as of May 1, 2013.
        (4) The Excel Centers for Adult Learners located in Kokomo,

Lafayette, and Richmond that are sponsored or authorized by the charter board and that are scheduled to begin operating not later than fall 2013, and the Excel Center for Adult Learners located in Indianapolis (Lafayette Square) that is sponsored or authorized by the mayor of Indianapolis and that is scheduled to begin operating not later than fall 2013.
        (5) The Gary Middle College charter school that is sponsored or authorized by Ball State University, that includes students who are twenty-two (22) years of age and older, and that is operating as of May 1, 2013.
    (b) Notwithstanding any other law, for state fiscal years beginning after June 30, 2013, a charter school described in subsection (a) is entitled to receive funding from the state in an amount equal to the product of:
        (1) the charter school's number of students (expressed as full-time equivalents); multiplied by
        (2) six thousand six hundred dollars ($6,600).
However, in the case of the charter school described in subsection (a)(5), the funding under this section applies only for those students who are twenty-two (22) years of age and older.
    (c) A charter school described in subsection (a) is entitled to receive federal special education funding.
    (d) A charter school that is granted a charter as described in IC 20-24-2.1-5(b) is not entitled to state funding.
    (e) The state funding under this section shall be paid each state fiscal year under a schedule set by the budget agency and approved by the governor. However, the schedule shall provide for at least twelve (12) payments, that one (1) payment shall be made at least every forty (40) days, and the aggregate of the payments in each state fiscal year shall equal the amount required under this section. However, if the appropriations for this purpose are insufficient, the distributions to each recipient shall be reduced proportionately.
As added by P.L.205-2013, SEC.235.