HB 1423 changesIndianapolis public education corporation.

What changed

+161 / −323 words · LargeConfidence: high

This version removes all appendix material and preliminary session language from the Indianapolis public education corporation bill, eliminating an extensive framework that governed property tax revenue distribution between school corporations and charter schools. The deleted provisions include a multi-year phased distribution system (2025-2030) with graduated percentages, budget submission and approval processes for charter schools with strict deadlines and penalties for noncompliance, advance tax distribution mechanisms allowing political subdivisions to request up to 95% of collected taxes, fiscal body approval requirements for certain taxing units' bonds and leases, and detailed procedures for public education corporation lease authority including public hearing requirements and taxpayer petition rights. The removal represents a complete abandonment of this elaborate alternative funding and governance structure for Indianapolis public schools, though without replacement text, the bill's intended direction remains unclear.

Change log

• APPENDIX >cont.

  removedhigh confidence

  Technical/conforming change

  This section represents continuation text from a larger appendix that has been removed. The removed content included provisions regarding revenue distribution limits, feasibility studies for managing school property, reporting deadlines to the legislative council, public hearing requirements before school closures, and school performance framework reporting. Because this is an appendix continuation being removed as part of broader structural changes to the bill, it represents technical reorganization rather than standalone substantive policy change.

• PREAMBLE >cont.

  removedhigh confidence

  Technical/conforming change

  This section removes prior legislative session boilerplate, including printing code instructions explaining statutory formatting conventions, conflict reconciliation notes, and session designation language. The removed text consists of standard bill printing instructions and formal legislative session identifiers (Second Regular Session of the 124th General Assembly) that were relevant to a previous version but are not substantive policy provisions. This is a routine removal of preliminary matter when advancing a bill between sessions.

• APPENDIX

  removedhigh confidence

  Emergency declaration and committee amendments deleted entirely

  The appendix containing the emergency declaration and committee amendments has been removed from the bill. This appendix included amendments that would have modified tax collection and distribution procedures for county treasurers, specifically provisions allowing political subdivisions to request advance distributions of up to 95% of collected taxes before the regular semiannual distribution. The removal means these tax procedure changes are no longer part of the bill.

• APPENDIX >cont.

  removedhigh confidence

  Removal of county auditor advance distribution provisions and public education corporation exemption

  This section removes provisions allowing political subdivisions to recover interest if county auditors fail to meet distribution deadlines, and removes a temporary provision (set to expire July 1, 2027) authorizing the Indianapolis public education corporation board to request an advance of funds from the county treasurer for the first semiannual distribution in 2026. The removed text also includes language exempting the public education corporation from certain governing body requirements.

• APPENDIX >cont.

  removedhigh confidence

  Entire provision governing budget review for taxing units removed

  This section removal eliminates the framework under which certain taxing units submit proposed budgets and property tax levies to city, town, or county fiscal bodies for review and adoption. The deleted text defined which taxing units must submit to which fiscal body based on assessed valuation location and governing body appointment structure, and established a September 2 submission deadline. It also specified that elected officials of other taxing units serving on governing bodies be treated as non-elected for purposes of this provision.

• APPENDIX >cont.

  removedhigh confidence

  Penalty provision for late budget filing eliminated

  A penalty mechanism that reduced the maximum property tax levy growth for taxing units failing to file required budget information on time has been removed. Previously, late-filing taxing units had their maximum levy growth quotient reduced to 80% of the standard growth amount when calculating the maximum permissible ad valorem property tax levy for the ensuing budget year. The removal of this penalty means taxing units that miss filing deadlines will no longer face this automatic reduction in their levy growth.

• APPENDIX >cont.

  removedhigh confidence

  Technical/conforming change

  This section contains continuation text from a larger provision describing penalty formulas when taxing units fail to meet filing requirements. The removed text appears to be part of structural reorganization rather than substantive policy change, as it provides technical calculations and remedial provisions already covered elsewhere in the statute.

• APPENDIX >cont.

  removedhigh confidence

  Entire appendix section on fiscal body approval for taxing unit bonds and leases removed

  This removes an entire appendix section that required certain taxing units with appointed (rather than elected) governing bodies to obtain city, town, or county fiscal body approval before issuing bonds or entering into leases payable from property taxes. The removed provisions included special rules for public libraries where more than 50% of parcels are located outside the establishing city or town, requiring county rather than municipal approval. The section specifically did not apply to school corporations or the public education corporation.

• APPENDIX >cont.

  removedhigh confidence

  Technical/conforming change

  This section contains only drafting instructions (e.g., 'Page 6, line 35, delete...') that direct how to modify other portions of the bill. These are procedural notations for bill assembly rather than substantive legal text that will become law.

• APPENDIX >cont.

  removedmedium confidence

  Technical/conforming change

  This appendix section has been removed from the bill. The content appears to consist of various amendment instructions and statutory provisions related to the Indianapolis Public Education Corporation, including transportation planning requirements, debt allocation rules, and an operations fund. Without corresponding context showing what replaced this text or why it was removed, this represents a structural deletion of appendix material.

• APPENDIX >cont.

  removedhigh confidence

  Multiple provisions removed including corporation fund usage rules, payment priority structure, and tax levy timing restrictions

  This section removes several distinct provisions that were being added to the bill. The removed text included rules for how a public education corporation must use money in its fund after June 30, 2026, establishing a payment priority system where school city obligations are paid first, followed by corporation obligations. It also removes language that would have specified timing for property tax provisions (beginning with taxes due after December 31, 2025) and expanded references from 'school city' to include 'public education corporation.' Additionally, it removes a section that would have applied revenue collection rules for tax levies in Lake, Marion, St. Joseph, and Vanderburgh Counties for the period between June 30, 2024 and January 1, 2028.

• APPENDIX >cont.

  removedhigh confidence

  Charter school property tax revenue distribution provisions repealed

  This section eliminates provisions that required county auditors to distribute property tax levy revenue from school corporations to eligible charter schools for calendar years 2025, 2026, and 2027. The removed text established a formula for distributing these revenues based on the number of charter school students with legal settlement in the school corporation who receive not more than 50% virtual instruction. Virtual charter schools and adult high schools were excluded from receiving these distributions.

• APPENDIX >cont.

  removedhigh confidence

  Distribution formula for property tax levy among school corporations and charter schools removed

  This section previously established a formula for calculating and distributing property tax levies between school corporations and charter schools in certain counties. The department was required to provide calculated percentages to county auditors, who would then distribute funds based on a base property tax levy amount (averaging 2021-2023 collections) and an incremental amount (current year collections minus the base). The entire distribution mechanism, including the multi-step calculation process, has been removed.

• APPENDIX >cont.

  removedhigh confidence

  Removal of charter school budget adoption and property tax distribution procedures for 2026-2027

  This section previously detailed three-step calculations for distributing property tax levy revenue between Indianapolis school corporations and charter schools, including percentage allocations and incremental amounts. It also required the department to provide revenue estimates by August 15 each year and mandated that eligible charter schools adopt budgets by October 15 (for distributions in the following year) through public meetings, with submission to authorizers and the department of local government finance by November 1. The entire section has been removed from the bill.

• APPENDIX >cont.

  removedhigh confidence

  Penalty and redistribution mechanism for noncompliant charter schools removed

  This section eliminated provisions that would have withheld property tax distributions from charter schools failing to submit required budget documents by specified deadlines, with withheld amounts redistributed to compliant schools and the school corporation in subsequent years. It also removed a special provision requiring the county auditor to first distribute a percentage of property tax revenue to the Indianapolis public education corporation operations fund before making distributions to the school city and charter schools in 2026 and 2027.

• APPENDIX >cont.

  removedhigh confidence

  Charter school tax levy distribution mechanism eliminated

  An entire statutory scheme governing how county auditors distribute tax levy revenue to charter schools has been removed. This scheme previously applied to revenue collected after December 31, 2027, and required distributions to eligible charter schools based on enrollment of students with legal settlement in the levying school corporation. The removed provisions included eligibility criteria (excluding virtual charter schools and adult high schools), calculation formulas based on ADM counts, and annual determination procedures by the department in consultation with the department of local government finance.

• APPENDIX >cont.

  removedhigh confidence

  Multi-step formula for distributing operations fund levy among school corporation and charter schools eliminated

  This section removes detailed calculation steps (STEPS TWO through FOUR) that determined how to allocate operations fund levy revenues between a school corporation and eligible charter schools based on student enrollment counts. The removed provisions required the department to provide percentage calculations to the county auditor, who would then distribute funds accordingly. The elimination of these formulas suggests a shift away from this specific enrollment-based distribution methodology for operations fund levies.

• APPENDIX >cont.

  removedhigh confidence

  Distribution calculation formula and budget adoption requirements for charter schools eliminated

  This section previously established a two-step formula for calculating property tax distribution amounts between the school corporation and eligible charter schools, incorporating the prior year's withheld amounts and specified percentages. It also required the department to provide annual estimates by August 15 starting in 2027, and mandated that charter school governing bodies adopt budgets by October 15 (following public presentation) to receive distributions beginning in 2028. The entire section containing these provisions has been removed.

• APPENDIX >cont.

  removedhigh confidence

  Removed provisions for charter school budget submission and withholding of property tax distributions

  This section deletion removes requirements for charter school governing bodies to submit adopted budgets, compliance dates, and attestation statements to their authorizer and the department of local government finance by November 1 annually, beginning in 2027. It also removes provisions allowing the department to withhold property tax distributions from noncompliant charter schools, with withheld amounts being redistributed to the school corporation and other eligible charter schools in the following year. Additionally, it removes language referencing special provisions for distribution years 2028, 2029, and 2030.

• APPENDIX >cont.

  removedhigh confidence

  Phased-in charter school distribution schedule (2028–2030) and Indianapolis public education corporation priority distribution removed

  The bill removes a graduated distribution mechanism that would have phased in charter school funding over three years (25% in 2028, 50% in 2029, 75% in 2030), with the schedule expiring July 1, 2032. It also eliminates a provision requiring the county auditor to first distribute a board-determined percentage of property tax revenue to the Indianapolis public education corporation's operations fund before making distributions to charter schools or the school city. Any remaining property tax revenue after charter distributions would have been returned to the originating school corporation.

• APPENDIX >cont.

  removedhigh confidence

  Multiple sections defining and expanding public education corporation lease authority removed

  This appendix continuation removed several code sections related to the Indianapolis public education corporation. The removed text defined the "corporation board," added a definition of "public education corporation," and amended lease authority provisions to allow the public education corporation to lease school buildings for up to 30 years under the same conditions as traditional school corporations. The removed lease provisions also addressed joint leases and required the corporation board to determine need and financial necessity before entering leases.

• APPENDIX >cont.

  removedhigh confidence

  Lease provisions for school and public education corporations deleted

  This section removes provisions governing leases between school corporations or public education corporations and lessor corporations. The deleted text specified that lessor corporations must be organized under Indiana law solely to acquire sites and erect school buildings, must operate without profit except for return of capital and certain limited expenses, and must apply excess lease payments to redeem outstanding securities. Also removed were required lease terms including renewal options and purchase options available after six years.

• APPENDIX >cont.

  removedlow confidence

  Technical/conforming change

  This section removes continuation text that appears to be part of a broader reorganization or cleanup of the statute. The removed provisions cover purchase price requirements for lessor corporations, restrictions on purchase obligations, lease timing provisions for school buildings under construction, and notice requirements for lease agreements. Without context from the full bill showing what replaces this language or why it is being removed, this appears to be part of a structural reorganization of the chapter.

• APPENDIX >cont.

  removedhigh confidence

  Public hearing notice and approval procedures for school corporation leases deleted

  This section removes detailed procedural requirements for public hearings on proposed school building leases. The deleted provisions specified timing requirements (10 or 30 days after publication depending on whether new construction or improvement was proposed), mandatory contents of public notices (including date, time, place, and lease terms), and the governing body's authority to approve or modify proposed leases within 30 days after the hearing. The removal eliminates these specific procedural safeguards and timelines from statute.

• APPENDIX >cont.

  removedhigh confidence

  Entire lease authorization notice and taxpayer petition process removed

  This section deletion removes procedural requirements for school corporations and public education corporations when executing leases. The removed text required publication of lease signing notices in newspapers and established a process allowing 50 or more taxpayers to petition against leases they deemed unnecessary or unfairly priced within 30 days of notice publication. The text also specified that upon receiving such petitions, county auditors would certify them to the Department of Local Government Finance for hearings scheduled within 5 to 30 days.

• APPENDIX >cont.

  removedhigh confidence

  Multiple provisions governing lease hearings, appeals, and lessor corporation property ownership removed

  This section removes procedural requirements for the department of local government finance to conduct hearings on school corporation leases, including notice requirements to governing bodies and taxpayer petitioners at least five days before hearings. It also eliminates the 30-day deadline for contesting lease validity after publication or after a department decision on appeal. Finally, it removes the requirement that lessor corporations acquire and hold land in fee simple where school buildings are to be erected.

• APPENDIX >cont.

  removedhigh confidence

  Land sale provisions and bond refunding authority for lessor corporations deleted

  This section removes procedural requirements for school corporations or public education corporations to sell land to lessor corporations for school building construction. The deleted provisions required appointment of three appraisers through circuit court petition to determine fair market value, with the land sold at no less than appraised value (or original purchase price if acquired within three years). The section also removes provisions defining bonds and authorizing lessor corporations to issue refunding bonds for outstanding redeemable bonds.

• APPENDIX >cont.

  removedhigh confidence

  Refunding bond provisions for lessor corporations deleted

  This section removes statutory provisions governing refunding bonds issued by lessor corporations for school buildings. The deleted text established limits on refunding bond amounts (capped at outstanding principal plus redemption premiums and issuance expenses), required net interest costs plus expenses not to exceed total interest on original bonds, specified that such bonds are legal investments exempt from taxation and securities registration, set a 15-day contest period after bid receipt, and allowed lease amendments to extend purchase option timing. No replacement language appears in the diff.

• APPENDIX >cont.

  removedhigh confidence

  Entire section on lessor corporation refunding and improvement bonds deleted

  This removes an entire statutory section (IC 20-47-2-18) that authorized lessor corporations with outstanding redeemable bonds to issue refunding and improvement bonds for school construction, additions, and remodeling. The section had specified that such bonds were legal investments exempt from taxation, could be sold without state securities registration, and allowed lessee school corporations or public education corporations to amend leases to extend purchase option timing, extend lease terms up to ten years, and increase rental payments. The removal eliminates this bonding and lease amendment framework entirely.

• APPENDIX >cont.

  removedhigh confidence

  Three sections on school leasing, bonding, and appropriation procedures deleted

  The bill removes text concerning amendments to school leases that increase rental payments, including procedural requirements for patron petitions, notice, hearing, and objection rights. It also deletes provisions allowing school corporations or the Indianapolis public education corporation to issue general obligation bonds for purchasing school buildings under lease-purchase options. Additionally, it removes requirements for annual appropriations from debt service or operations funds to pay lease rentals, including timing and review procedures for such appropriations.

• APPENDIX >cont.

  removedhigh confidence

  Removal of multiple provisions governing lessor corporations, school buildings, and Indianapolis public education corporation definitions

  This section removes several existing provisions from the bill's appendix. The removed text includes a property tax exemption for lessor corporations leasing to school corporations or the public education corporation, language clarifying that this chapter supplements other school building laws, a requirement that lessor corporations return excess funds to school corporations or the public education corporation upon lease termination, and two new definitional sections that would have defined "corporation board" and "public education corporation" for purposes of this chapter. These deletions eliminate references to the Indianapolis public education corporation from various statutory provisions.

• APPENDIX >cont.

  removedmedium confidence

  Technical/conforming change

  This appendix section contains fragments of provisions regarding school building leases and lease parties. The removal appears to be part of cleanup or reorganization of statutory references related to the public education corporation, likely consolidated or relocated elsewhere in the bill.

• APPENDIX >cont.

  removedhigh confidence

  Lease renewal and purchase option provisions deleted

  This section previously required leases to include options for school corporations or public education corporations to renew the lease or purchase the leased property, with purchase terms subject to state approval. It also authorized these entities to issue bonds to finance such purchases. The entire provision has been removed from the statute.

• APPENDIX >cont.

  removedhigh confidence

  Removes provisions governing lease purchase options, prepayment penalties, and property transfer conditions

  This section eliminates detailed rules about how school corporations and public education corporations could purchase leased property. The removed text specified prepayment penalties (2% in first five years, 1% in second five years), conditions under which leased property would automatically transfer to the school corporation at lease expiration, special provisions for Dubois County school corporations leasing from religious organizations, and rules exempting post-June 30, 2008 leases from Department of Local Government Finance approval for purchase terms.

• APPENDIX >cont.

  removedhigh confidence

  Public education corporation removed from school lease provisions

  This section previously allowed a public education corporation to enter into leases for school building acquisition and construction, subject to the same procedures as school corporations. The removed text specified that public education corporations could enter leases in anticipation of site acquisition and building construction, with lease payments beginning only when buildings are ready for occupancy. The text also outlined notice and hearing requirements that applied to public education corporations alongside school corporations.

• APPENDIX >cont.

  removedhigh confidence

  Public notice and hearing procedures for school lease agreements eliminated

  This section removal eliminates detailed statutory procedures governing public hearings and notice requirements for school building leases. The removed text specified mandatory waiting periods (10 or 30 days depending on construction type), publication requirements in local newspapers, content requirements for public notices (including location, lessor name, rental terms), and hearing procedures where interested persons could challenge lease necessity and rental fairness. The removal also eliminates the requirement that proposed leases, drawings, plans, and specifications be available for public inspection, as well as the governing body's authority to authorize or modify leases within 30 days following the hearing.

• APPENDIX >cont.

  removedhigh confidence

  Lease approval notice and taxpayer petition procedures eliminated

  This section previously established procedures for public notice when a school corporation or public education corporation governing body authorized a lease, requiring publication in a local newspaper. It also created a process allowing ten or more affected taxpayers to petition the county auditor within thirty days if they believed the lease was unnecessary or the rental unfair, which would trigger a hearing before the department of local government finance. The entire section has now been removed.

• APPENDIX >cont.

  removedhigh confidence

  Technical/conforming change

  This section contains continuation text from previous sections dealing with procedural requirements for school building leases, including hearing procedures, notice requirements, and contest deadlines. The removal appears to be part of structural reorganization of the appendix rather than substantive policy change.

• APPENDIX >cont.

  removedhigh confidence

  Procedures for school corporations selling land to lessor corporations eliminated

  This section removed detailed procedures governing how a school corporation or public education corporation could sell land to a lessor corporation when proposing to lease a school building. The removed procedures included requirements to petition a circuit court for appointment of three appraisers (one disinterested freeholder and two licensed appraisers residing in Indiana) to determine fair market value, timeframes for appraisal completion, and minimum sale price requirements. The section also removed provisions regarding annual lease rental appropriations from the debt service fund.

• APPENDIX >cont.

  removedhigh confidence

  Removal of provisions extending school building lease laws to Indianapolis public education corporation

  Multiple sections that previously extended Indiana's school building lease, tax exemption, and bond provisions to the Indianapolis public education corporation are being removed. These sections had allowed the public education corporation to use the same legal framework as traditional school corporations for leasing buildings from lessor corporations, returning unused funds after lease termination, and receiving property tax exemptions. The removal eliminates explicit statutory authority for the public education corporation to operate under these provisions.