2004 Digest of New K-12 Education Laws
Last Updated: March 29, 2004

The 2004 session of the Indiana General Assembly adjourned sine die on Friday, March 5, 2004. The following is a summary of K-12 education, child related, and other miscellaneous bills that the Indiana Department of Education tracked through the bill process during the 2004 session. Overall, 973 bills were introduced this session, and 98 bills were enacted. This summary includes a synopsis of 24 new laws.

K-12 Education Legislation

House Enrolled Act 1133 (Public Law 38-2004)
Hepatitis B
Authors: Budak, Brown, Becker, Welch
Requires every child who enters grade 9 and grade 12 to be immunized against hepatitis B until July 1, 2008. Prohibits the prevention of a child from enrolling in, attending, or graduating high school for the sole reason that the child was not immunized against hepatitis B.
Effective Date: July 1, 2004
Signed by the Governor: March 16, 2004

House Enrolled Act 1202 (Public Law 8-2004)
Surveillance of Public Health Threats
Authors: Lawson, Reske
Requires the Indiana Department of Health to collect data related to symptoms and health syndromes from outbreaks of disease or other health conditions that may be a danger to public health. Requires a health provider that collects certain data to report this data to the Department of Health. Requires a school corporation or an accredited school to report to the local health department the percentage of student absences above a threshold determined by the Indiana Department of Education.
Effective Date: July 1, 2004
Signed by the Governor: March 9, 2004

House Enrolled Act 1253 (P.L. 47-2004)
Special Purpose School Buses
Authors: Robertson, Goodin, Thompson
Allows a school corporation to use special purpose buses to provide regular transportation of school children from one school to another school.
Effective Date: July 1, 2004
Signed by the Governor: March 16, 2004

House Enrolled Act 1308 (P.L. 57-2004)
Cultural Competency in Education
Authors: Porter, Scholer, Austin, Smith
Defines "cultural competency" and sets forth teacher training, professional development, and school plan requirements for achieving cultural competency.
Effective Date: July 1, 2004
Signed by the Governor: March 16, 2004

House Enrolled Act 1434 (P.L. 96-2004)
Microenterprise program and STAR account
Authors: Crawford, Austin, Aguilera, Thompson
Creates the State Technology Advancement and Retention (STAR) account within the state general fund (no appropriation provided) to advance technology and retain graduates in Indiana by funding certain grant programs. Money in the account is annually dedicated to the following: (1) the Certified School to Career Program and grants under IC 22-4.1-8; (2) the Certified Internship Program and grants under IC 22-4.1-7; (3) the Indiana Economic Development Partnership fund under IC 4-12-10; (4) Minority training program grants under IC 22-4-18.1-11; (5) Technology Apprenticeship grants under IC 20-1-18.7; (6) the Back Home in Indiana Program under IC 22-4-18.1-12; (7) The Indiana Schools Smart Partnership under IC 22-4.1-9; (8) the Scientific Instrument Project within the Indiana Department of Education; the Coal Technology Research Fund under IC 4-4-30-8. Requires the Indiana Economic Development Council to establish a microenterprise partnership program to provide grants to community based nonprofit organizations for the purpose of providing business development services and loans to businesses with fewer than five employees.
Effective Date: July 1, 2004
Signed by the Governor: March 18, 2004

House Enrolled Act 1437 (P.L. 85-2004)
Corrections
Authors: Crawford, Turner, Foley
Provides that a school is entitled to receive juvenile court records for a student of the school under certain circumstances. Provides immunity for improper disclosures of education records made in good faith. Many other sections of the bill deal with correctional and judicial issues that are not germane to education.
Effective Date: July 1, 2004
Signed by the Governor: March 17, 2004

Child Related Legislation

Senate Enrolled Act 194 (P.L. 18-2004)
CHINS
Authors: Dillon, Broden, Waterman, Clark, Skillman
Provides that a child is a child in need of services (CHINS) if the child: (1) lives in the same household as another child who is the victim of certain sex offenses; (2) lives in the same household as the adult who committed the sex offense; (3) needs care, treatment, or rehabilitation that the child is not receiving and that is unlikely to be provided or accepted without the coercive intervention of the court; and (4) has been placed in or has been considered for placement in an informal adjustment program. Establishes a rebuttable presumption that a child is a CHINS if: (1) another child in the same household has been the victim of a sex offense; (2) the offense was committed by an adult living in the household; and (3) the offense resulted in the conviction of the adult or a CHINS adjudication concerning the child victim. Provides that a child presumed to be a CHINS may not be taken into custody unless a court finds cause following a hearing.
Effective Date: July 1, 2004
Signed by the Governor: March 16, 2004

House Enrolled Act 1082 (P.L. 36-2004)
Missing Children Clearinghouse
Authors: Ayres, Lawson, Becker, Kuzman
Requires a review of entries in the missing children clearinghouse within 60 days after the review required by laws governing reports made to the National Crime Information Center (NCIC).
Effective Date: July 1, 2004
Signed by the Governor:March 16, 2004

House Enrolled Act 1098 (P.L. 67-2004)
Child Restraints in Motor Vehicles
Authors: Welch, Lawson, Brown
Requires a person who operates a motor vehicle with a child who is less than 16 years of age to restrain the child by a child restraint system or a safety belt. Removes the exception that a person who operates a vehicle registered outside Indiana is not required to use a child restraint system unless the vehicle is operated in Indiana for more than 60 days in a year. Establishes the child restraint system account within the general fund. Provides that violation of the child restraint laws does not: (1) add points to the driver's traffic report; and (2) count toward habitual violator status. Repeals the current law governing passenger restraint systems and safety belt use for children at least four and less than 12 years of age.
Effective Date: July 1, 2004
Signed by the Governor:March 17, 2004

House Enrolled Act 1132 (P.L. 6-2004)
Expenses of Meeting Childcare Requirements
Authors: Budak, Crawford
Amends certain childcare statutes to specify that expenses of criminal history and drug testing requirements are not paid by the state. (The board for coordination of childcare regulation prepared the introduced version of this bill.)
Effective Date: July 1, 2004
Signed by the Governor: March 9, 2004

House Enrolled Act 1194 (P.L. 70-2004)
Child Abuse Reporting
Authors: Avery, Summers, Budak, Orentlicher
Provides that a child protective services child abuse or neglect report may conclude that abuse or neglect is indicated. (Current law allows only substantiated and unsubstantiated findings.) Provides that criminal history checks are required of certain individuals. Requires the local child protection service to provide training to caseworkers concerning the statutory and constitutional rights of persons subject to investigation. Establishes the statewide child fatality review team to investigate fatalities involving children. Requires the disclosure of information relevant to establishing the facts and circumstances concerning the death of a child determined to be the result of abuse, abandonment, or neglect if this information has been redacted by a juvenile court to exclude irrelevant information, including identifying information. Specifies that information concerning caseworkers and employees of certain social service agencies is not to be redacted. Provides that the juvenile court has 30 days to redact the record. Permits a court to place a child in the home of a person having a substantiated report of abuse or neglect, or in the home of a person who has committed certain crimes or delinquent acts, only if the court makes a written finding that the placement is in the best interest of the child, and that the conviction, adjudication, or substantiated report is not relevant to the person's present ability to care for a child, and specifies certain factors that the court must consider in its order. Prohibits a court from placing a child in a home with a person who has committed certain other specified felonies or juvenile offenses.
Effective Date: July 1, 2004
Signed by the Governor: March 17, 2004

House Enrolled Act 1245 (P.L. 46-2004)
Crime Victims; Neglect of a Dependent
Authors: VanHaaften, Austin, Thomas
Makes neglect of a dependent a Class A felony instead of a Class D felony if the neglect results in the death of a dependent who is less than 14 years of age and is committed by a person at least 18 years of age. Makes contributing to delinquency a Class C felony instead of a Class A misdemeanor if the person furnishes alcohol or a controlled substance to a minor and consumption of the alcohol or drug is the proximate cause of the death of any person.
Effective Date: July 1, 2004
Signed by the Governor: March 16, 2004

House Enrolled Act 1330 (P.L. 58-2004)
Detention Period of Runaway Juveniles
Authors: Ayres, Lawson, Becker, Kuzman
Increases the time a runaway child may be held in a juvenile detention facility to 24 hours before and 24 hours immediately after the child's initial court appearance.
Effective Date: July 1, 2004
Signed by the Governor: March 16, 2004

Other/Miscellaneous Legislation

Senate Enrolled Act 001 (P.L. 1-2004)
Property Taxes
Authors: Borst, Hume
Authorizes investment of state funds, including the common school fund, in certain obligations of the Indiana Bond Bank. Authorizes the Department of Local Government Finance (DLGF) to take over the 2003 general reassessment process (including the equalization study) in a county if the county's equalization study was not submitted to the department before October 20, 2003 or if DLGF determines that the county's reassessment is likely to be inaccurate. Provides that after December 31, 2004, the sales disclosure forms and data forwarded by local assessors to DLGF and the legislative services agency must be provided in electronic format. Provides that money in the assessment-training fund may be used to cover expenses incurred by DLGF for training and examination programs. For property taxes and special benefits taxes payable after 2003 and based on the most recent general reassessment, adjusts maximum rates that were not adjusted for taxes payable in 2003. Provides for an adjustment of the maximum rate each time an annual assessed value adjustment or a general reassessment takes effect. Eliminates the banking of unused levy allowances in calculating the maximum permissible property tax levy for a civil taxing unit and for certain funds. Eliminates authority to adjust assessed values to reflect the effects of appeals of assessments. Provides that the initial step in the appeal of a property assessment is a written request by the taxpayer for a preliminary conference with a county or township-assessing official. Provides that the written request need not be on a DLGF form. Notwithstanding a property assessment agreed to by the township assessor and the taxpayer in resolution of an appeal to the county property tax assessment board of appeals, permits the board to determine its own assessment under its authority to assess property for the current year. Eliminates the requirement for a taxpayer to file a claim for refund after a successful assessment appeal. Eliminates the property tax appeal provision that permits local units to reallocate CAGIT property tax replacement credits for a purpose other than property tax relief. Provides for deposit in a taxing unit's levy excess fund of property tax collections in excess of 100 percent (instead of 102%) of the unit's levy. Requires the State Board of Accounts to design a standard form of the petition that is used to initiate the petition and remonstrance procedure. Provides that the petition requires the signatures of the lesser of 100 or 5 percent of the property owners in the political subdivision (instead of 250 or 10%). Prohibits a political subdivision (including a school corporation) from taking certain actions to promote a position on a petition for or remonstrance against a bond issue or lease. Prohibits a person from soliciting or collecting signatures for a petition or remonstrance on property owned by a political subdivision. With respect to the review of budgets and levies of taxing units that have a governing body comprised primarily of appointed members and propose to increase their property tax levies by more than 5 percent, adds library districts to the entities subject to review and authorizes reduction of the proposed levy to an amount that is less than the maximum permissible levy. Allows counties to issue provisional tax statements if the abstract is not delivered in a timely manner. Authorizes DLGF to waive the provisional tax statement requirement under certain circumstances. Provides that county assessors, township assessors, and trustee assessors who do not meet certain certification requirements forfeit their offices. Requires DLGF to give the examinations for certification in an open book format. Increases the cap on the income tax deduction for property taxes paid on a principal place of residence for homeowners who pay property taxes imposed for the March 1, 2002 or January 15, 2003 assessment dates in 2004. Legalizes and validates any action taken by DLGF before January 1, 2004, to extend the deadline for filing an assessment appeal to the county, to allow the payment of property taxes in installments, or to waive a late payment penalty. Permits an individual who was eligible for but did not apply for a homestead credit or certain property tax deductions for taxes payable in 2004 to apply before December 15, 2003. Requires DLGF to study the feasibility of creating uniform and common computer software programs for property tax assessment purposes, including computer software programs that allow the sharing and transfer of assessment data in a uniform format by the state and all counties. Allows, for the assessment years 2002, 2003, and 2004, an appeal of a real property assessment that is filed within 45 days after a taxpayer receives the notice of change in assessment or the related tax bill, whichever occurs first, to apply to the taxes imposed for that assessment date and payable in the next year even if the appeal is filed after May 10 of the assessment year. Requires, for property taxes payable on homesteads in 2004, DLGF to provide each county treasurer with the wording of a statement of the amount by which the property taxes in the county were reduced by actions of the general assembly to mitigate the effects of the general reassessment. Requires the county treasurer to include the statement with each tax statement mailed or otherwise transmitted. Requires the commission on state tax and financing policy to study elimination of property taxes and alternative sources of revenue.
Effective Date: Upon Passage; May 10, 2002 (retroactive); July 1, 2003 (retroactive); July 1, 2004
Signed by the Governor:December 12, 2003

Senate Enrolled Act 363 (P.L. 21-2004)
Council for People with Disabilities
Authors: Jackman, Hershman, Howard
Creates the Governor's Council for People with Disabilities and the board of directors of the council to implement the federal Developmental Disabilities Assistance and Bill of Rights act. (The council and board of directors are currently created by executive order).
Effective Date: July 1, 2004
Signed by the Governor: March 9, 2004

House Enrolled Act 1001 (P.L. 23-2004)
Property Taxes
Authors: Crawford, Espich, Frenz, Turner
Authorizes investment of state funds, including the common school fund, in certain obligations of the Indiana Bond Bank. Authorizes the Department of Local Government Finance (DLGF) to take over the 2003 general reassessment process (including the equalization study) in a county if the county's equalization study was not submitted to the department before October 20, 2003 or if DLGF determines that the county's reassessment is likely to be inaccurate. Provides that after December 31, 2004, the sales disclosure forms and data forwarded by local assessors to DLGF and the legislative services agency must be provided in electronic format. Provides that money in the assessment training fund may be used to cover expenses incurred by DLGF for training and examination programs. For property taxes and special benefits taxes payable after 2003 and based on the most recent general reassessment, adjusts maximum rates that were not adjusted for taxes payable in 2003. Provides for an adjustment of the maximum rate each time an annual assessed value adjustment or a general reassessment takes effect. Eliminates the banking of unused levy allowances in calculating the maximum permissible property tax levy for a civil taxing unit and for certain funds. Eliminates authority to adjust assessed values to reflect the effects of appeals of assessments. Provides that the initial step in the appeal of a property assessment is a written request by the taxpayer for a preliminary conference with a county or township assessing official. Provides that the written request need not be on a DLGF form. Notwithstanding a property assessment agreed to by the township assessor and the taxpayer in resolution of an appeal to the county property tax assessment board of appeals, permits the board to determine its own assessment under its authority to assess property for the current year. Eliminates the requirement for a taxpayer to file a claim for refund after a successful assessment appeal. Eliminates the property tax appeal provision that permits local units to reallocate CAGIT property tax replacement credits for a purpose other than property tax relief. Permits a civil taxing unit or school corporation to file a property tax appeal before December 31 (instead of September 20) for relief from a shortfall resulting from the use of erroneous assessed values or the payment of refunds. Provides for deposit in a taxing unit's levy excess fund of property tax collections in excess of 100 percent (instead of 102%) of the unit's levy. Requires the state board of accounts to design a standard form of the petition that is used to initiate the petition and remonstrance procedure. Provides that the petition requires the signatures of the lesser of 100 or 5 percent of the property owners in the political subdivision (instead of 250 or 10%). Prohibits a political subdivision (including a school corporation) from taking certain actions to promote a position on a petition for or remonstrance against a bond issue or lease. Prohibits a person from soliciting or collecting signatures for a petition or remonstrance on property owned by a political subdivision. With respect to the review of budgets and levies of taxing units that have a governing body comprised primarily of appointed members and propose to increase their property tax levies by more than 5 percent, adds library districts to the entities subject to review and authorizes reduction of the proposed levy to an amount that is less than the maximum permissible levy. Allows counties to issue provisional tax statements if the abstract is not delivered in a timely manner. Authorizes DLGF to waive the provisional tax statement requirement under certain circumstances. Provides that county assessors, township assessors, and trustee assessors who do not meet certain certification requirements forfeit their offices. Requires DLGF to give the examinations for certification in an open book format. Increases the cap on the income tax deduction for property taxes paid on a principal place of residence for homeowners who pay property taxes imposed for the March 1, 2002 or January 15, 2003 assessment dates in 2004. Legalizes and validates any action taken by DLGF before January 1, 2004, to extend the deadline for filing an assessment appeal to the county, to allow the payment of property taxes in installments, or to waive a late payment penalty. Requires DLGF to study the feasibility of creating uniform and common computer software programs for property tax assessment purposes, including computer software programs that allow the sharing and transfer of assessment data in a uniform format by the state and all counties. Allows, for the assessment dates in 2003 and 2004, an appeal of a real property assessment that is filed within 45 days after a taxpayer receives the tax statement based on the assessment for the preceding year. Requires the county treasurer to include the statement with each tax statement mailed or otherwise transmitted. Requires the commission on state tax and financing policy to study elimination of property taxes and alternative sources of revenue.
Effective Date: Upon passage; July 1, 2003 (retroactive); January 1, 2004; July 1, 2004; January 1, 2005
Signed by the Governor: March 16, 2004

House Enrolled Act 1005 (P.L. 64-2004)
State and Local Administration
Authors: Reske, Kromkowski, Orentlicher, Pelath
With respect to a residential real property financing or refinancing, requires a closing agent to provide to each customer information on property tax deductions and the homestead credit on a form prescribed by the department of local government finance. Imposes a penalty on a closing agent that does not comply. Provides that a closing agent is not liable for any other damages claimed by a customer because of the closing agent's failure to provide the appropriate document to the customer. Provides for additional information about property taxes to be provided with the property tax statement of current and delinquent taxes and special assessments in a pilot program in certain counties in 2005, 2006, and 2007 and statewide after 2007. Permits a county to voluntarily provide the additional information about property taxes with property tax statements in 2004. Provides for state reimbursement of expenditures made by a county to provide the additional information, not to exceed a statewide total of $50,000. Establishes the property tax replacement study commission. Establishes the local government efficiency and financing study commission. Provides that an out-of-state commercial broker or salesperson licensed in another state may practice in Indiana without an Indiana license if the out-of-state commercial broker or salesperson meets certain requirements. Provides that a licensed nonresident broker may act as a broker in Indiana if the broker meets certain requirements. Provides that the telephone numbers of a buyer and seller on a sales disclosure form filed with the county auditor are confidential. Specifies a title insurance qualification for insurance producers. Establishes: (1) an exemption from insurance producer licensure for certain individuals; and (2) requirements for: (a) prelicensing courses for title insurance producers; and (b) continuing education for limited lines producers who have a title insurance qualification. Adds a member to the insurance producer education and continuing education advisory council. Authorizes certain counties and municipalities to provide property tax abatements for logistical distribution equipment and information technology equipment installed after June 30, 2004, and before January 1, 2006. Allows certain cities to adopt a resolution to establish a professional sports and convention development area before January 1, 2005. Allows Gary, Indiana to designate more than one facility as part of a professional sports and convention development area. Changes the population parameters for first and second-class cities so that reorganization does not change a city's classification.
Effective Date: Upon passage; July 1, 2004
Signed by the Governor:March 17, 2004

House Enrolled Act 1254 (P.L. 48-2004)
Driver's Licensing Matters
Authors: Robertson, Burton
Allows the Bureau of Motor Vehicles to adopt rules to comply with federal requirements concerning background checks for an individual seeking a hazardous materials endorsements for a commercial driver's license. Specifies that a learner's permit holder who: (1) is less than 18 years old and holds a validated permit; or (2) is enrolled in an approved driver's education course; may drive a motor vehicle when the seat beside the driver's seat is occupied by a stepparent of the permit holder who holds a valid operator's license. Permits a licensed commercial driver training school to conduct classroom training in a county outside the county in which the school is located. Revises the definition of approved motorcycle driver education and training course to include a course offered by a new motorcycle dealer.
Effective Date: July 1, 2004
Signed by the Governor: March 16, 2004

House Enrolled Act 1266 (P.L. 93-2004)
Internet Based Public Purchasing
Authors: Ayres, Austin, Hasler, Thomas
Authorizes the Department of Administration to establish Internet sites designed to facilitate state public purchasing. Requires the Department of Administration to establish rules and fees for the use of Internet purchasing sites in cooperation with the Intelenet Commission and the State Board of Accounts. Permits a purchasing agency to conduct online reverse auctions for purchases of supplies. Establishes procedures governing the conduct of an online reverse auction.
Effective Date: Upon passage; July 1, 2004
Signed by the Governor: March 18, 2004

House Enrolled Act 1301 (P.L. 54-2004)
Special Group License Plates; Lewis and Clark
Authors: Botorff, Foley, Cochran, Pierce
Allows a special group that sells at least 5,000 license plates during a calendar year to petition the bureau of motor vehicles to design and issue a license plate that will be available through the bureau's branches upon completing an application and paying the appropriate fee. Requires the bureau to design and issue special group recognition license plates for the Lewis and Clark bicentennial and the Riley Children's Foundation Trust. Provides that a person who is eligible to register a vehicle may obtain a Lewis and Clark bicentennial license plate or a Riley Children's Foundation Trust license plate upon completing an application and paying the appropriate fee. Provides for the distribution of fees from the plates to the Lewis and Clark bicentennial commission and the Riley Children's Foundation Trust. Converts the Lewis and Clark bicentennial commission to a permanent commission. (Under current law the commission expires January 1, 2008.) Permits the commission to establish a nonprofit corporation to carry out the duties of the commission.
Effective Date: Upon passage; May 1, 2004
Signed by the Governor: March 16 2004

House Enrolled Act 1306 (P.L. 56-2004)
PERF and TRF Cost of Living Adjustment
Authors: Kromkowski, Cheney, Herrell, Scholer
Provides a 2 percent cost of living adjustment for members, survivors, and beneficiaries of the Public Employees' Retirement fund after December 31, 2004. Provides a cost of living adjustment for members, survivors, and beneficiaries of the Teachers' Retirement Fund after December 31, 2004.
Effective Date: July 1, 2004
Signed by the Governor: March 16, 2004

House Enrolled Act 1350 (P.L. 61-2004)
Commission on Health Care Interpreters and Translators. Creates the Commission on Health Care Interpreters and Translators, to be staffed by the state Department of Health.  Requires the Commission to report specified findings and recommendations to the Health Finance Commission not later than November 1, 2004. A member of the Commission shall represent the Indiana Department of Education who is nominated by the state superintendent of public instruction.
Effective Date: July 1, 2004
Signed by the Governor: March 16, 2004

House Enrolled Act 1365 (P.L. 81-2004)
State and Local Administration
Author: Cochran, Liggett, Kuzman, Espich
Requires the twenty-first century research and technology fund board to establish and administer a grant office to work with federal agencies, state agencies, units of local government, colleges and universities, and private sector entities to develop and receive research and development grants. Creates the emerging technology grant fund to be administered by the twenty-first century research and technology fund board. Many other sections of the bill deal with gaming and tax issues that are not germane to education.
Effective Date: January 1, 2004 (retroactive); March 1, 2004 (retroactive); July 1, 2004
Signed by the Governor: March 17, 2004

House Enrolled Act 1401 (P.L. 95-2004)
Public Officers Compensation Committees
Authors: Kuzman, Bosma, Richardson, Mahern
Establishes the public officers compensation advisory commission to make recommendations to the Indiana General Assembly regarding the salaries to be paid to public officers. Provides that recommended increases in salaries may not exceed changes in the Indiana nonfarm income. Provides that for purposes of computing a retirement benefit for a person who is a member of the state Teachers' Retirement Fund and who takes an unpaid leave of absence to serve in an elected position: (1) "annual compensation" includes the total amount that was not paid to the member but would have been paid to the member during the year under the member's employment contracts if the member had not taken any unpaid leave of absence to serve in an elected position; and (2) the "average of the annual compensation" means the annual compensation for the one year of service in which the member's annual compensation was highest. Extends the health care adjustments made to executive branch employees to members of the judicial branch. Establishes a judicial insurance adjustment fee of $1 to be collected in certain civil actions and in certain criminal, infraction, and ordinance violation actions. Provides that the costs of the health care adjustments for judicial branch members be paid from the judicial health adjustment fee.
Effective Date: Upon passage; June 1, 2004; July 1, 2004; July 1, 2005
Signed by the Governor: March 18, 2004