iga-2017-hb1004.txt

*HB1004.2*
Reprinted
February 7, 2017

HOUSE BILL No. 1004
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DIGEST OF HB 1004 (Updated February 6, 2017 7:02 pm - DI 110)
Citations Affected: IC 12-7; IC 12-17.2; IC 20-51.
Synopsis: Prekindergarten education. Allows the division of family
resources (division) to award an early education matching grant to an
eligible potential eligible provider or existing eligible provider that: (1)
submits an expansion plan to the division that details the potential
eligible provider's or existing eligible provider's plan to: (A) increase
the capacity of providers of eligible services to serve a greater number
of eligible children; (B) increase the number of providers of eligible
services; or (C) increase capacity of and increase the number of
providers; and (2) meets certain other requirements. Requires a
potential eligible provider or existing eligible provider to repay to the
division the total amount of the grant awarded if the potential eligible
provider or existing eligible provider fails to use the grant funds in
accordance with the expansion plan or in compliance with the
agreement with the division. Prohibits the division from using more
than a total of 20% of the money in the early education matching grant
program fund each state fiscal year for grants awarded to potential
eligible providers and existing eligible providers for expansion plans.
Amends household income requirements for eligibility of a child for
the: (1) early education matching grant program; and (2) early
education pilot program (pilot program). Provides that the pilot
program may include eligible providers from 10 (instead of five)
counties. Amends the amount of grant money an eligible child may
(Continued next page)
Effective: July 1, 2017.

Behning, Sullivan, Moed
January 10, 2017, read first time and referred to Committee on Education.
February 2, 2017, amended, reported — Do Pass.
February 6, 2017, read second time, amended, ordered engrossed.

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Digest Continued
receive under the pilot program based on annual household income.
Provides that in kind funds, as determined by the office of the secretary
of family and social services, meet the requirements regarding
matching funds under the early education matching grant and the pilot
program. Changes references to the "pilot program" to the
"prekindergarten pilot program". Provides that: (1) an individual who:
(A) receives an early education grant under the pilot program in the
immediately preceding school year or received eligible services as an
eligible child under the early education matching grant program in the
immediately preceding school year from a provider that received an
early education matching grant; and (B) is a member of a household
with an annual income of not more than 200% of the amount required
to qualify for the federal free or reduced price lunch program; is an
eligible choice scholarship student; and (2) the individual is entitled to
receive at least 50% of the state tuition support amount. Repeals a
provision that provides that the receipt of a grant under the pilot
program does not qualify, nor have an effect on the qualification or
eligibility, of a child for a choice scholarship. Repeals an expired
provision concerning the pilot program.

HB 1004—LS 7253/DI 110

Reprinted
February 7, 2017
First Regular Session of the 120th General Assembly (2017)
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 2016 Regular Session of the General Assembly.

HOUSE BILL No. 1004

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

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

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SECTION 1. IC 12-7-2-142.9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2017]: Sec. 142.9. "Potential eligible provider
or existing eligible provider", for purposes of IC 12-17.2-3.6, has
the meaning set forth in IC 12-17.2-3.6-6.5.
SECTION 2. IC 12-17.2-3.6-3, AS ADDED BY P.L.2-2014,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 3. As used in this chapter, "eligible provider"
refers to an entity that qualifies as an eligible provider under section 16
16(a) of this chapter.
SECTION 3. IC 12-17.2-3.6-6.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2017]: Sec. 6.5. As used in this chapter,
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"potential eligible provider or existing eligible provider" refers to
an entity that qualifies as a potential eligible provider or existing
eligible provider under section 16(b) of this chapter.
SECTION 4. IC 12-17.2-3.6-11, AS ADDED BY P.L.2-2014,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 11. (a) The early education matching grant
program fund is established for the purpose of providing matching
grants to providers of eligible services and to potential eligible
providers or existing eligible providers for expansion plans. The
fund shall be administered by the division.
(b) The fund consists of the following:
(1) Appropriations by the general assembly.
(2) Grants and gifts that the state receives for the fund under
terms, obligations, and liabilities that the division considers
appropriate.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that accrues
from these investments shall be deposited in the fund.
(d) Money in the fund at the end of a state fiscal year does not revert
to the state general fund. The fund is a trust fund and may not be
transferred to another fund under IC 4-9.1-1-7.
SECTION 5. IC 12-17.2-3.6-11.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2017]: Sec. 11.5. The division may not use
more than a total of twenty percent (20%) of the money in the fund
each state fiscal year for grants awarded under this chapter to
potential eligible providers or existing eligible providers for
expansion plans.
SECTION 6. IC 12-17.2-3.6-13, AS ADDED BY P.L.2-2014,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 13. (a) The division may award a grant from the
fund to an applicant that:
(1) agrees to:
(A) operate as an eligible provider; or
(B) use the grant to:
(i) increase the capacity of providers of eligible services
to serve a greater number of eligible children;
(ii) increase the number of providers of eligible services;
or
(iii) increase the capacity as described in item (i) and
increase the number as described in item (ii);
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and operate as an eligible provider or that the applicant
intends to operate as an eligible provider;
(2) subject to subsection (d), either:
(A) has obtained a matching gift or grant; or
(B) has a commitment for a matching gift or grant;
from any combination of foundations, other nonprofit entities,
individuals, or for-profit entities for the purposes of the
applicant's program of eligible services or expansion plan
described in section 16(b) of this chapter;
(3) provides the division with a plan for use of the grant and any
related matching funds that demonstrates to the satisfaction of the
division that use of the grant and related matching funds will
increase the number of eligible children receiving eligible
services;
(4) enters into a written agreement with the division concerning
the:
(A) delivery of eligible services or an expansion plan; and
the
(B) use of a grant provided under this chapter that incorporates
the plan approved by the division under subdivision (3); and
(5) provides to the division any other information that the division
determines necessary or appropriate for the grant.
(b) The division may award a grant under this chapter to an
applicant that:
(1) meets the requirements to receive a grant as a potential
eligible provider or existing eligible provider under this
chapter for the purposes described in subsection (a)(1)(B);
and
(2) is located in a county in which the pilot program under
IC 12-17.2-7.2 is implemented, including an applicant that is
an eligible provider (as defined in IC 12-17.2.-7.2-2).
(c) The division may award two (2) grants under this chapter to
the same applicant if the applicant:
(1) applies to:
(A) operate as an eligible provider; and
(B) implement an expansion plan as a potential eligible
provider or existing eligible provider; and
(2) is otherwise eligible to receive each grant under this
chapter.
(d) The matching grant or gift required under subsection (a)(2)
may be:
(1) a monetary matching grant or gift; or
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(2) an in kind matching grant or gift if the in kind grant or
gift was obtained within the previous year.
(e) The office of the secretary shall determine whether an in
kind grant or gift is an appropriate in kind grant or gift to meet the
requirements under subsection (a)(2).
SECTION 7. IC 12-17.2-3.6-13.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2017]: Sec. 13.5. If a potential eligible
provider or existing eligible provider fails to:
(1) use the grant funds in accordance with the expansion plan
described in section 16(b) of this chapter; or
(2) comply with the agreement entered into with the division
under section 16(b) of this chapter;
the potential eligible provider or existing eligible provider shall
repay to the division the total amount of the grant awarded to the
potential eligible provider or existing eligible provider under this
chapter.
SECTION 8. IC 12-17.2-3.6-15, AS ADDED BY P.L.2-2014,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 15. To qualify as an eligible child, the child must
be:
(1) a member of a household with an annual income that does not
exceed one hundred percent (100%) of the federal poverty level;
of not more than one hundred fifty percent (150%) of the
amount required for the child to qualify for the federal free or
reduced price lunch program;
(2) at least four (4) years of age and less than five (5) years of age
when the child receives eligible services; and
(3) a resident of Indiana or otherwise have legal settlement in
Indiana, as determined under IC 20-26-11.
SECTION 9. IC 12-17.2-3.6-16, AS ADDED BY P.L.2-2014,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 16. (a) To qualify as an eligible provider, an
applicant must:
(1) be an entity other than an individual;
(2) provide eligible services to individuals for at least one
hundred eighty (180) days per year;
(3) administer the kindergarten readiness assessment
(ISTAR-KR) adopted by the department of education to children
receiving eligible services as required by the division;
(4) include a parental involvement component in the delivery of
eligible services that is based on the requirements and guidelines
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established by the division;
(5) comply with the agreement with the division concerning the
delivery of eligible services and the use of a grant provided under
this chapter; and
(6) comply with any other standards and procedures established
under this chapter.
(b) To qualify as a potential eligible provider or existing eligible
provider, an applicant must:
(1) be an entity other than an individual;
(2) provide an expansion plan to the division that details the
potential eligible provider's or existing eligible provider's plan
to:
(A) increase the capacity of providers of eligible services to
serve a greater number of eligible children;
(B) increase the number of providers of eligible services; or
(C) increase the capacity as described in clause (A) and
increase the number as described in clause (B);
(3) comply with the agreement with the division concerning
the plan under subdivision (2) and the use of a grant awarded
under this chapter;
(4) agree:
(A) to operate as an eligible provider; or
(B) that the applicant intends to operate as an eligible
provider; and
(5) comply with any other standards and procedures
established under this chapter.
SECTION 10. IC 12-17.2-3.6-18, AS ADDED BY P.L.2-2014,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 18. (a) The division shall monitor the educational
outcomes resulting from the:
(1) delivery of eligible services by eligible providers; and
(2) implementation of expansion plans described in section
16(b) of this chapter by potential eligible providers or existing
eligible providers;
that receive a grant under this chapter over the period established by
the division to evaluate the contribution that eligible services or
expansion plans make toward improved education outcomes.
(b) The division shall provide the department of education with
information necessary for the department of education to assign a child
who receives early education services from a an eligible provider that
participates in the program under this chapter a student testing number.
Upon receipt of the information, the department of education shall
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assign the child a student testing number to track the child's
educational growth and development.
(c) The department of education shall cooperate with the division as
necessary or appropriate to assist the division to carry out this section,
including the sharing of information related to the educational
outcomes assigned a student testing number under subsection (b) to the
extent permitted by the laws governing the disclosure of student
information.
(d) Beginning in 2015, the division shall annually provide the
committee, the governor, and (in an electronic format under IC 5-14-6)
the legislative council a report of the findings of the division under this
section in a form that complies with all laws governing the disclosure
of student information.
SECTION 11. IC 12-17.2-7.2-1, AS ADDED BY P.L.202-2014,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 1. As used in this chapter, "eligible child" refers
to an individual who:
(1) is at least four (4) years of age and less than five (5) years of
age on August 1 of the state fiscal year for which a grant is sought
under the prekindergarten pilot program;
(2) is a resident of Indiana or otherwise has legal settlement in
Indiana, as determined under IC 20-26-11;
(3) is a member of a household with an annual income that does
not exceed one hundred twenty-seven percent (127%) of the
federal poverty level; of not more than one hundred fifty
percent (150%) of the amount required for the individual to
qualify for the federal free or reduced price lunch program;
(4) receives qualified early education services from an eligible
provider, as determined by the office;
(5) has a parent or guardian who participates in a parental
engagement and involvement component provided by the eligible
provider; and
(6) has a parent or guardian who agrees to ensure that the child
meets the attendance requirements determined by the office.
SECTION 12. IC 12-17.2-7.2-2, AS AMENDED BY P.L.169-2016,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 2. As used in this chapter, "eligible provider"
refers to a provider that satisfies the following conditions:
(1) The provider is:
(A) a:
(i) public school, including a charter school;
(ii) child care center licensed under IC 12-17.2-4;
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(iii) child care home licensed under IC 12-17.2-5; or
(iv) child care ministry registered under IC 12-17.2-6;
that meets the standards of quality recognized by a Level 3 or
Level 4 paths to QUALITY program rating;
(B) a school that is accredited by the state board of education
or a national or regional accreditation agency that is
recognized by the state board of education; or
(C) a school that is accredited to provide qualified early
education services by an accrediting agency approved by the
office of the secretary.
(2) The provider provides qualified early education services to
eligible children.
(3) The provider is located in a county in which the
prekindergarten pilot program is implemented.
SECTION 13. IC 12-17.2-7.2-5, AS ADDED BY P.L.202-2014,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 5. As used in this chapter, "pilot
"prekindergarten pilot program" refers to the prekindergarten pilot
program established under section 7 of this chapter.
SECTION 14. IC 12-17.2-7.2-7, AS ADDED BY P.L.202-2014,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 7. (a) The office may establish a prekindergarten
pilot program to provide grants for qualified early education services
in a manner consistent with how funds are distributed under the Child
Care and Development Fund (CCDF) grant program.
(b) The office shall administer the prekindergarten pilot program.
The program may include eligible providers in not more than five (5)
ten (10) counties. In determining which counties are designated as pilot
counties, the office shall attempt to achieve diversity among the
designated counties based on the geographical location of the counties,
the population of the counties, and whether the counties are primarily
rural or urban. The office shall ensure that the counties selected include
a population of eligible children sufficient to conduct the longitudinal
study under section 12 of this chapter.
(c) Subject to the requirements of this chapter, the office shall
determine:
(1) the eligibility requirements, application process, and selection
process for awarding grants under the prekindergarten pilot
program;
(2) the administration and reporting requirements for eligible
providers participating in the prekindergarten pilot program;
and
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(3) with the assistance of the early learning advisory committee,
an appropriate outcomes based accountability system for eligible
providers.
(d) Before implementing the prekindergarten pilot program, the
office shall submit the provisions of the prekindergarten pilot
program to the state board of education for the state board of
education's review and comment.
(e) The office shall, subject to the availability of funding, determine
the number of eligible children who will participate in the
prekindergarten pilot program.
SECTION 15. IC 12-17.2-7.2-7.5, AS ADDED BY P.L.35-2016,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 7.5. The secretary office may adopt rules under
IC 4-22-2 concerning the implementation and the administration of the
prekindergarten pilot program.
SECTION 16. IC 12-17.2-7.2-8, AS ADDED BY P.L.202-2014,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 8. (a) The office shall determine:
(1) subject to subsection (f), which applicants shall be awarded
a grant; and
(2) subject to subsection (b) and to the availability of funding, the
amount of each grant.
(b) Subject to subsection (c), at least ten percent (10%) but not
more than fifty percent (50%) of the tuition for eligible children under
the prekindergarten pilot program during the state fiscal year must be
paid from donations, gifts, grants, bequests, and other funds received
from a private entity or person, from the United States government, or
from other sources (excluding funds from a grant provided under this
chapter and excluding other state funding). The office may receive and
administer grants on behalf of the prekindergarten pilot program. The
grants shall be distributed by the office to fulfill the requirements of
this subsection.
(c) The donations, gifts, grants, bequests, and other funds
required under subsection (b) may be:
(1) monetary donations, gifts, grants, bequests, or other
funds; or
(2) in kind donations, gifts, grants, bequests, or other funds if
the in kind donations, gifts, grants, bequests, or other funds
were obtained within the previous year.
(d) The office shall determine whether in kind donations, gifts,
grants, bequests, or other funds are appropriate in kind donations,
gifts, grants, bequests, or other funds to meet the requirements
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under subsection (b).
(c) (e) The amount of a grant made under the prekindergarten pilot
program to an eligible child: may not exceed the following:
(1) must equal at least two thousand five hundred dollars ($2,500)
Six thousand eight hundred dollars ($6,800) during the state
fiscal year and if an eligible child is the member of a household
with an annual income of not more than the amount required
for the eligible child to qualify for the federal free or reduced
price lunch program.
(2) may not exceed six thousand eight hundred dollars ($6,800)
Three thousand four hundred dollars ($3,400) during the state
fiscal year if an eligible child is a member of a household with
an annual income of not more than one hundred fifty percent
(150%) of the amount required for the eligible child to qualify
for the federal free or reduced price lunch program.
(d) The total amount of grants provided from the funding under
section 9(a) of this chapter that are awarded under the pilot program in
a state fiscal year may not exceed ten million dollars ($10,000,000).
(f) In awarding a grant under this chapter, the office shall, to
the extent possible, give priority to an eligible child who is a
member of a household with an annual income of not more than
the amount required to qualify for the federal free or reduced price
lunch program.
SECTION 17. IC 12-17.2-7.2-9 IS REPEALED [EFFECTIVE JULY
1, 2017]. Sec. 9. (a) The pilot program, including the longitudinal study
under section 12 of this chapter, must be funded from one (1) or both
of the following:
(1) After review by the budget committee and approval by the
budget agency, from Child Care and Development Fund (CCDF)
grant funding received from the United States government that is
designated by the budget agency as available for funding the pilot
program.
(2) After review by the budget committee and approval by the
budget agency, from amounts reverted in a state fiscal year from
funds appropriated to the divisions, departments, and bureaus
administered by the office that are designated by the budget
agency as available for funding the pilot program.
This subsection expires June 30, 2015.
(b) The amounts necessary to make the grants and pay the expenses
of the longitudinal study under section 12 of this chapter from funds
designated under subsection (a) are appropriated from the sources
described in subsection (a) for the state fiscal year beginning July 1,
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2014, and ending June 30, 2015, for the purposes of the pilot program.
SECTION 18. IC 12-17.2-7.2-11 IS REPEALED [EFFECTIVE
JULY 1, 2017]. Sec. 11. The receipt of a grant under the pilot program
does not qualify, nor have an effect on the qualification or eligibility,
of a child for a choice scholarship under IC 20-51-4.
SECTION 19. IC 12-17.2-7.2-12, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2017 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 12. (a) The office shall carry out a longitudinal
study of students who participate in the prekindergarten pilot program
to determine the achievement levels of those students in kindergarten
and later grades.
(b) The longitudinal study must include a comparison of test and
assessment results in grade 3 of:
(1) the eligible children who participated in the prekindergarten
pilot program; and
(2) a control group determined by the office that consists of
children who did not participate in the prekindergarten pilot
program.
(c) The office may, after consulting with the state board of
education, enter into a contract with one (1) or more persons to carry
out the longitudinal study under this section. The office may expend
not more than one million dollars ($1,000,000) from the funds
appropriated under section 9 of this chapter (repealed) to carry out the
longitudinal study. The amount expended to carry out the longitudinal
study under this section is in addition to the ten million dollar
($10,000,000) limit under section 8(d) of this chapter on the amount of
grants under the pilot program in a state fiscal year.
SECTION 20. IC 12-17.2-7.2-13, AS ADDED BY P.L.202-2014,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 13. The office shall before November 1 of each
year report to the governor, the budget committee, the state board of
education, the department of education, and, in an electronic format
under IC 5-14-6, the legislative council regarding the prekindergarten
pilot program.
SECTION 21. IC 20-51-1-4.3, AS AMENDED BY P.L.233-2015,
SECTION 313, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2017]: Sec. 4.3. "Eligible choice scholarship
student" refers to an individual who:
(1) has legal settlement in Indiana;
(2) is at least five (5) years of age and less than twenty-two (22)
years of age on the date in the school year specified in
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IC 20-33-2-7; and
(3) meets at least one (1) of the following conditions:
(A) The individual is:
(i) a student with a disability who requires special education
and for whom an individualized education program has been
developed under IC 20-35 or a service plan developed under
511 IAC 7-34; and
(ii) a member of a household with an annual income of not
more than two hundred percent (200%) of the amount
required for the individual to qualify for the federal free or
reduced price lunch program.
(B) The individual is:
(i) an individual who, because of the school corporation's
residency requirement, would be required to attend a
specific public school within a school corporation that has
been placed in the lowest category or designation of school
improvement under IC 20-31-8-4 (has been assigned an "F"
grade); and
(ii) except as provided in IC 20-51-4-2.5, is a member of a
household with an annual income of not more than one
hundred fifty percent (150%) of the amount required for the
individual to qualify for the federal free or reduced price
lunch program.
An individual to whom this clause applies is not required to
attend the public school before becoming eligible for a choice
scholarship, and may not be required to return to the public
school if the public school is placed in a higher category or
designation under IC 20-31-8-4.
(C) Except as provided in IC 20-51-4-2.5, the individual is a
member of a household with an annual income of not more
than one hundred fifty percent (150%) of the amount required
for the individual to qualify for the federal free or reduced
price lunch program and the individual was enrolled in
kindergarten through grade 12, in a public school, including a
charter school, in Indiana for at least two (2) semesters
immediately preceding the first semester for which the
individual receives a choice scholarship under IC 20-51-4.
(D) The individual or a sibling of the individual who, except
as provided in IC 20-51-4-2.5, is a member of a household
with an annual income of not more than one hundred fifty
percent (150%) of the amount required for the individual to
qualify for the federal free or reduced price lunch program and
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satisfies either of the following:
(i) The individual or a sibling of the individual received
before July 1, 2013, a scholarship from a scholarship
granting organization under IC 20-51-3 or a choice
scholarship under IC 20-51-4 in a preceding school year,
including a school year that does not immediately precede
a school year in which the individual receives a scholarship
from a scholarship granting organization under IC 20-51-3
or a choice scholarship under IC 20-51-4.
(ii) The individual or a sibling of the individual receives for
the first time after June 30, 2013, a scholarship of at least
five hundred dollars ($500) from a scholarship granting
organization under IC 20-51-3 or a choice scholarship under
IC 20-51-4 in a preceding school year, including a school
year that does not immediately precede a school year in
which the individual receives a scholarship from a
scholarship granting organization under IC 20-51-3 or a
choice scholarship under IC 20-51-4.
(E) The individual:
(i) received an early education grant under
IC 12-17.2-7.2 at any time; and
(ii) is a member of a household with an annual income of
not more than two hundred percent (200%) of the
amount required for the individual to qualify for the
federal free or reduced price lunch program.
(F) The individual:
(i) received eligible services as an eligible child under
IC 12-17.2-3.6 at any time from a provider that received
an early education matching grant under IC 12-17.2-3.6;
and
(ii) is a member of a household with an annual income of
not more than two hundred percent (200%) of the
amount required for the individual to qualify for the
federal free or reduced price lunch program.
SECTION 22. IC 20-51-4-4, AS AMENDED BY P.L.106-2016,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 4. (a) The amount an eligible choice scholarship
student is entitled to receive under this chapter for a school year is
equal to the following:
(1) The least of the following:
(A) The sum of the tuition, transfer tuition, and fees required
for enrollment or attendance of the eligible choice scholarship
HB 1004—LS 7253/DI 110

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student at the eligible school selected by the eligible choice
scholarship student for a school year that the eligible choice
scholarship student (or the parent of the eligible choice
scholarship student) would otherwise be obligated to pay to
the eligible school.
(B) An amount equal to:
(i) ninety percent (90%) of the state tuition support amount
determined under section 5 of this chapter if the eligible
choice scholarship student is a member of a household with
an annual income of not more than the amount required for
the eligible choice scholarship student to qualify for the
federal free or reduced price lunch program; and
(ii) fifty percent (50%) of the state tuition support amount
determined under section 5 of this chapter if the eligible
choice scholarship student is a member of a household with
an annual income of in the case of an individual not
described in IC 20-51-1-4.3(3)(A), IC 20-51-1-4.3(3)(E),
IC 20-51-1-4.3(3)(F), or section 2.5 of this chapter, not
more than one hundred fifty percent (150%) of the amount
required for the eligible choice scholarship student to
qualify for the federal free or reduced price lunch program
or, in the case of an individual described in
IC 20-51-1-4.3(3)(A), IC 20-51-1-4.3(3)(E),
IC 20-51-1-4.3(3)(F), or section 2.5 of this chapter, not
more than two hundred percent (200%) of the amount
required for the eligible choice scholarship student to
qualify for the federal free or reduced price lunch program.
(2) In addition, if the eligible choice scholarship student has been
identified as eligible for special education services under
IC 20-35 and the eligible school provides the necessary special
education or related services to the eligible choice scholarship
student, any amount that a school corporation would receive
under IC 20-43-7 for the eligible choice scholarship student if the
eligible choice scholarship student attended the school
corporation. However, if an eligible choice scholarship student
changes schools during the school year after the December 1
count under IC 20-43-7-1 of eligible pupils enrolled in special
education programs and the eligible choice scholarship student
enrolls in a different eligible school, any choice scholarship
amounts paid to the eligible choice scholarship student for the
remainder of the school year after the eligible choice scholarship
student enrolls in the different eligible school shall not include
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amounts that a school corporation would receive under
IC 20-43-7 for the eligible choice scholarship student if the
eligible choice scholarship student attended the school
corporation.
(b) The amount an eligible choice scholarship student is entitled to
receive under this chapter if the eligible student applies for the choice
scholarship under section 7(e)(2) of this chapter shall be reduced on a
prorated basis in the manner prescribed in section 6 of this chapter.

HB 1004—LS 7253/DI 110

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COMMITTEE REPORT
Mr. Speaker: Your Committee on Education, to which was referred
House Bill 1004, has had the same under consideration and begs leave
to report the same back to the House with the recommendation that said
bill be amended as follows:
Page 11, delete lines 41 through 42, begin a new paragraph and
insert:
"SECTION 21. IC 20-51-4-4, AS AMENDED BY P.L.106-2016,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 4. (a) The amount an eligible choice scholarship
student is entitled to receive under this chapter for a school year is
equal to the following:
(1) The least of the following:
(A) The sum of the tuition, transfer tuition, and fees required
for enrollment or attendance of the eligible choice scholarship
student at the eligible school selected by the eligible choice
scholarship student for a school year that the eligible choice
scholarship student (or the parent of the eligible choice
scholarship student) would otherwise be obligated to pay to
the eligible school.
(B) An amount equal to:
(i) ninety percent (90%) of the state tuition support amount
determined under section 5 of this chapter if the eligible
choice scholarship student is a member of a household with
an annual income of not more than the amount required for
the eligible choice scholarship student to qualify for the
federal free or reduced price lunch program; and
(ii) fifty percent (50%) of the state tuition support amount
determined under section 5 of this chapter if the eligible
choice scholarship student is a member of a household with
an annual income of in the case of an individual not
described in IC 20-51-1-4.3(3)(A), IC 20-51-1-4.3(3)(E),
IC 20-51-1-4.3(3)(F), or section 2.5 of this chapter, not
more than one hundred fifty percent (150%) of the amount
required for the eligible choice scholarship student to
qualify for the federal free or reduced price lunch program
or, in the case of an individual described in
IC 20-51-1-4.3(3)(A), IC 20-51-1-4.3(3)(E),
IC 20-51-1-4.3(3)(F), or section 2.5 of this chapter, not
more than two hundred percent (200%) of the amount
required for the eligible choice scholarship student to
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qualify for the federal free or reduced price lunch program.
(2) In addition, if the eligible choice scholarship student has been
identified as eligible for special education services under
IC 20-35 and the eligible school provides the necessary special
education or related services to the eligible choice scholarship
student, any amount that a school corporation would receive
under IC 20-43-7 for the eligible choice scholarship student if the
eligible choice scholarship student attended the school
corporation. However, if an eligible choice scholarship student
changes schools during the school year after the December 1
count under IC 20-43-7-1 of eligible pupils enrolled in special
education programs and the eligible choice scholarship student
enrolls in a different eligible school, any choice scholarship
amounts paid to the eligible choice scholarship student for the
remainder of the school year after the eligible choice scholarship
student enrolls in the different eligible school shall not include
amounts that a school corporation would receive under
IC 20-43-7 for the eligible choice scholarship student if the
eligible choice scholarship student attended the school
corporation.
(b) The amount an eligible choice scholarship student is entitled to
receive under this chapter if the eligible student applies for the choice
scholarship under section 7(e)(2) of this chapter shall be reduced on a
prorated basis in the manner prescribed in section 6 of this chapter.".
Delete pages 12 through 13.
and when so amended that said bill do pass.
(Reference is to HB 1004 as introduced.)
BEHNING
Committee Vote: yeas 9, nays 4.

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HOUSE MOTION
Mr. Speaker: I move that House Bill 1004 be amended to read as
follows:
Page 1, delete lines 1 through 9, begin a new paragraph and insert:
"SECTION 1. IC 12-7-2-142.9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2017]: Sec. 142.9. "Potential eligible provider
or existing eligible provider", for purposes of IC 12-17.2-3.6, has
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the meaning set forth in IC 12-17.2-3.6-6.5.".
Page 1, between lines 14 and 15, begin a new paragraph and insert:
"SECTION 3. IC 12-17.2-3.6-6.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2017]: Sec. 6.5. As used in this chapter,
"potential eligible provider or existing eligible provider" refers to
an entity that qualifies as a potential eligible provider or existing
eligible provider under section 16(b) of this chapter.".
Page 2, line 4, delete "eligible developers" and insert "potential
eligible providers or existing eligible providers".
Page 2, line 23, delete "eligible developers" and insert "potential
eligible providers or existing eligible providers".
Page 2, delete lines 24 through 42, begin a new paragraph and
insert:
"SECTION 6. IC 12-17.2-3.6-13, AS ADDED BY P.L.2-2014,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 13. (a) The division may award a grant from the
fund to an applicant that:
(1) agrees to:
(A) operate as an eligible provider; or
(B) use the grant to:
(i) increase the capacity of providers of eligible services
to serve a greater number of eligible children;
(ii) increase the number of providers of eligible services;
or
(iii) increase the capacity as described in item (i) and
increase the number as described in item (ii);
and operate as an eligible provider or that the applicant
intends to operate as an eligible provider;
(2) subject to subsection (d), either:
(A) has obtained a matching gift or grant; or
(B) has a commitment for a matching gift or grant;
from any combination of foundations, other nonprofit entities,
individuals, or for-profit entities for the purposes of the
applicant's program of eligible services or expansion plan
described in section 16(b) of this chapter;
(3) provides the division with a plan for use of the grant and any
related matching funds that demonstrates to the satisfaction of the
division that use of the grant and related matching funds will
increase the number of eligible children receiving eligible
services;
(4) enters into a written agreement with the division concerning
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the:
(A) delivery of eligible services or an expansion plan; and
the
(B) use of a grant provided under this chapter that incorporates
the plan approved by the division under subdivision (3); and
(5) provides to the division any other information that the division
determines necessary or appropriate for the grant.
(b) The division may award a grant under this chapter to an
applicant that:
(1) meets the requirements to receive a grant as a potential
eligible provider or existing eligible provider under this
chapter for the purposes described in subsection (a)(1)(B);
and
(2) is located in a county in which the pilot program under
IC 12-17.2-7.2 is implemented, including an applicant that is
an eligible provider (as defined in IC 12-17.2.-7.2-2).
(c) The division may award two (2) grants under this chapter to
the same applicant if the applicant:
(1) applies to:
(A) operate as an eligible provider; and
(B) implement an expansion plan as a potential eligible
provider or existing eligible provider; and
(2) is otherwise eligible to receive each grant under this
chapter.
(d) The matching grant or gift required under subsection (a)(2)
may be:
(1) a monetary matching grant or gift; or
(2) an in kind matching grant or gift if the in kind grant or
gift was obtained within the previous year.
(e) The office of the secretary shall determine whether an in
kind grant or gift is an appropriate in kind grant or gift to meet the
requirements under subsection (a)(2).
SECTION 7. IC 12-17.2-3.6-13.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2017]: Sec. 13.5. If a potential eligible
provider or existing eligible provider fails to:
(1) use the grant funds in accordance with the expansion plan
described in section 16(b) of this chapter; or
(2) comply with the agreement entered into with the division
under section 16(b) of this chapter;
the potential eligible provider or existing eligible provider shall
repay to the division the total amount of the grant awarded to the
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potential eligible provider or existing eligible provider under this
chapter.".
Page 3, delete lines 1 through 30.
Page 4, delete lines 2 through 33, begin a new paragraph and insert:
"SECTION 9. IC 12-17.2-3.6-16, AS ADDED BY P.L.2-2014,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2017]: Sec. 16. (a) To qualify as an eligible provider, an
applicant must:
(1) be an entity other than an individual;
(2) provide eligible services to individuals for at least one
hundred eighty (180) days per year;
(3) administer the kindergarten readiness assessment
(ISTAR-KR) adopted by the department of education to children
receiving eligible services as required by the division;
(4) include a parental involvement component in the delivery of
eligible services that is based on the requirements and guidelines
established by the division;
(5) comply with the agreement with the division concerning the
delivery of eligible services and the use of a grant provided under
this chapter; and
(6) comply with any other standards and procedures established
under this chapter.
(b) To qualify as a potential eligible provider or existing eligible
provider, an applicant must:
(1) be an entity other than an individual;
(2) provide an expansion plan to the division that details the
potential eligible provider's or existing eligible provider's plan
to:
(A) increase the capacity of providers of eligible services to
serve a greater number of eligible children;
(B) increase the number of providers of eligible services; or
(C) increase the capacity as described in clause (A) and
increase the number as described in clause (B);
(3) comply with the agreement with the division concerning
the plan under subdivision (2) and the use of a grant awarded
under this chapter;
(4) agree:
(A) to operate as an eligible provider; or
(B) that the applicant intends to operate as an eligible
provider; and
(5) comply with any other standards and procedures
established under this chapter.".
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Page 4, line 40, delete "eligible developers;" and insert "potential
eligible providers or existing eligible providers;".
Page 11, line 26, delete "IC 12-17-7.2" and insert "IC 12-17.2-7.2".
Renumber all SECTIONS consecutively.
(Reference is to HB 1004 as printed February 3, 2017.)
BEHNING

HB 1004—LS 7253/DI 110