IC 20-26-15
    Chapter 15. Freeway School Corporation and Freeway SchoolProgram

IC 20-26-15-1
"Contract"
    Sec. 1. As used in this chapter, "contract" refers to a contractentered into under this chapter for the establishment of:
        (1) a freeway school corporation; or
        (2) a freeway school.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-2
"Freeway school"
    Sec. 2. As used in this chapter, "freeway school" refers to:
        (1) a school for which a contract has been entered into underthis chapter; or
        (2) a nonpublic school that enters into a contract under section13 of this chapter.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-3
"Freeway school corporation"
    Sec. 3. As used in this chapter, "freeway school corporation"refers to a school corporation that enters into a contract under thischapter.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-4
Contract for designation as freeway school; approval
    Sec. 4. (a) The state board and the governing body of a schoolcorporation must enter into a contract that complies with this chapterto designate a school corporation as a freeway school corporation ora school within a school corporation as a freeway school if a schoolcorporation:
        (1) petitions the state board for designation as a freeway schoolcorporation or to have a school within the school corporationdesignated as a freeway school; and
        (2) agrees to comply with this chapter.
    (b) A school corporation becomes a freeway school corporationand a school becomes a freeway school when the contract is signedby:
        (1) the state superintendent, acting for the state board after amajority of the members of the state board have voted in apublic session to enter into the contract; and
        (2) the president of the governing body of the schoolcorporation, acting for the governing body of the schoolcorporation after a majority of the members of the governingbody have voted in a public session to enter into the contract.
As added by P.L.1-2005, SEC.10.
IC 20-26-15-5
Elective suspension of statutes and rules in freeway school contract
.    Sec. 5. Notwithstanding any other law, the operation of thefollowing is suspended for a freeway school corporation or a freewayschool if the governing body of the school corporation elects to havethe specific statute or rule suspended in the contract:
        (1) The following statutes and rules concerning curriculum andinstructional time:
            IC 20-30-2-7
            IC 20-30-5-8
            IC 20-30-5-9
            IC 20-30-5-11
            511 IAC 6-7-6
            511 IAC 6.1-3-4
            511 IAC 6.1-5-0.5
            511 IAC 6.1-5-1
            511 IAC 6.1-5-2.5
            511 IAC 6.1-5-3.5
            511 IAC 6.1-5-4.
        (2) The following rule concerning pupil/teacher ratios:
            511 IAC 6.1-4-1.
        (3) The following statutes and rules concerning textbooks:
            IC 20-20-5-1 through IC 20-20-5-4
            IC 20-20-5-23
            IC 20-26-12-24
            IC 20-26-12-26
            IC 20-26-12-28
            IC 20-26-12-1
            IC 20-26-12-2
            511 IAC 6.1-5-5.
        (4) 511 IAC 6-7, concerning graduation requirements.
        (5) IC 20-31-4, concerning the performance based accreditationsystem.
        (6) IC 20-32-5, concerning the ISTEP program establishedunder IC 20-32-5-15, if an alternative locally adoptedassessment program is adopted under section 6(7) of thischapter.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-6
Permitted actions by freeway school or freeway school corporationduring contract period
    Sec. 6. Except as provided in this chapter and notwithstanding anyother law, a freeway school corporation or a freeway school may dothe following during the contract period:
        (1) Disregard the observance of any statute or rule that is listedin the contract.
        (2) Lease school transportation equipment to others fornonschool use when the equipment is not in use for a schoolcorporation purpose, if the lessee has not received a bid from a

private entity to provide transportation equipment or servicesfor the same purpose.
        (3) Replace the budget and accounting system that is requiredby law with a budget or accounting system that is frequentlyused in the private business community. The state board ofaccounts may not go beyond the requirements imposed upon thestate board of accounts by statute in reviewing the budget andaccounting system used by a freeway school corporation or afreeway school.
        (4) Establish a professional development and technology fundto be used for:
            (A) professional development; or
            (B) technology, including video distance learning.
        However, any money deposited in the professional developmentand technology fund for technology purposes must betransferred to the school technology fund.
        (5) Subject to subdivision (4), transfer funds obtained fromsources other than state or local government taxation among anyaccounts of the school corporation, including a professionaldevelopment and technology fund established under subdivision(4).
        (6) Transfer funds obtained from property taxation and fromstate distributions among the general fund and the schooltransportation fund, subject to the following:
            (A) The sum of the property tax rates for the general fundand the school transportation fund after a transfer occursunder this subdivision may not exceed the sum of theproperty tax rates for the general fund and the schooltransportation fund before a transfer occurs under thissubdivision.
            (B) This subdivision does not allow a school corporation totransfer to any other fund money from the:
                (i) capital projects fund; or
                (ii) debt service fund.
        (7) Establish a locally adopted assessment program to replacethe assessment of students under the ISTEP program establishedunder IC 20-32-5-15, subject to the following:
            (A) A locally adopted assessment program must beestablished by the governing body and approved by thedepartment.
            (B) A locally adopted assessment program may use a locallydeveloped test or a nationally developed test.
            (C) Results of assessments under a locally adoptedassessment program are subject to the same reportingrequirements as results under the ISTEP program.
            (D) Each student who completes a locally adoptedassessment program and the student's parent have the samerights to inspection and rescoring as set forth inIC 20-32-5-9.
As added by P.L.1-2005, SEC.10. Amended by P.L.2-2006, SEC.135.
IC 20-26-15-7
Educational benefits required during contract period
    Sec. 7. The minimum educational benefits that a freeway schoolcorporation or a freeway school must produce under this chapter arethe following:
        (1) An average attendance rate that increases:
            (A) not less than two percent (2%) each school year until theaverage attendance rate is eighty-five percent (85%); and
            (B) one percent (1%) each school year until the averageattendance rate is ninety percent (90%).
        (2) A successful completion rate of the assessment program bymeeting essential standards under the ISTEP program (IC20-32-5) or a locally adopted assessment program establishedunder section 6(7) of this chapter that increases:
            (A) not less than two percent (2%) each school year until thesuccessful completion rate is not less than eighty-fivepercent (85%); and
            (B) one percent (1%) each school year until the successfulcompletion rate is not less than ninety percent (90%);
        of the students in the designated grade levels under the ISTEPassessment program (IC 20-32-5) or the locally adoptedassessment program that are grades contained in the freewayschool corporation or freeway school.
        (3) Beginning with the class of students who expect to graduatefour (4) years after a freeway school corporation or a freewayschool that is a high school obtains freeway status, a graduationrate as determined under 511 IAC 6.1-1-2(k) that increases:
            (A) not less than two percent (2%) each school year until thegraduation rate is not less than eighty-five percent (85%);and
            (B) one percent (1%) each school year until the graduationrate is ninety percent (90%).
After a freeway school corporation or a freeway school has achievedthe minimum rates required under subdivisions (1) through (3), thefreeway school corporation or freeway school must either maintainthe minimum required rates or show continued improvement of thoserates.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-8
Mandatory contract provisions and plans; additional educationalbenefits allowed under contract
    Sec. 8. (a) The contract must contain the following provisions:
        (1) A list of the statutes and rules that are suspended fromoperation in a freeway school corporation or freeway school, aslisted in section 5 of this chapter.
        (2) A description of the privileges of a freeway schoolcorporation or freeway school, as listed in section 6 of thischapter.
        (3) A description of the educational benefits listed in section 7

of this chapter that a freeway school corporation or freewayschool agrees to:
            (A) achieve by the end of five (5) complete school yearsafter the contract is signed; and
            (B) maintain at the end of:
                (i) the sixth; and
                (ii) any subsequent;
            complete school year after the contract is signed.
        (4) A plan and a schedule for the freeway school corporation orfreeway school to achieve the educational benefits listed insection 7 of this chapter by the end of five (5) complete schoolyears after the contract is signed. The schedule must show somepercentage of improvement by the end of the second, third, andfourth complete school years after the contract is signed.
        (5) A school by school strategy, including curriculum, in whichcharacter education is demonstrated to be a priority. Thestrategy required under this subdivision must include thefollowing subjects as integral parts of each school's charactereducation:
            (A) Hygiene.
            (B) Alcohol and drugs.
            (C) Diseases transmitted sexually or through drug use,including AIDS.
            (D) Honesty.
            (E) Respect.
            (F) Abstinence and restraint.
        (6) A plan under which the freeway school corporation orfreeway school will offer courses that will allow a student tobecome eligible to receive an academic honors diploma.
        (7) A plan under which the freeway school corporation orfreeway school will maintain a safe and disciplined learningenvironment for students and teachers.
    (b) In the contract:
        (1) the quantitative measures of benefits may be higher, but notlower, than the minimum educational benefits listed in section7 of this chapter; and
        (2) educational benefits may be included in addition to theminimum educational benefits listed in section 7 of this chapter.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-9
Contract amendment
    Sec. 9. The governing body of a freeway school corporation andthe state board acting jointly may amend a contract entered intounder this chapter:
        (1) to comply with any law enacted subsequent to the formationof the contract;
        (2) to alter the educational benefits to a level that is not belowthe minimum educational benefits listed in section 7 of thischapter; or        (3) for a purpose jointly agreed to by the parties.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-10
Annual evaluation of contract compliance
    Sec. 10. On July 1 of each year, the state board shall determinewhether a freeway school corporation or freeway school that hascompleted:
        (1) a second, third, or fourth complete school year under acontract entered under this chapter has achieved the scheduledimprovement in educational benefits that the freeway schoolcorporation or freeway school has agreed to achieve;
        (2) a fifth complete school year under a contract entered underthis chapter has achieved the educational benefits that thefreeway school corporation or freeway school has agreed toachieve; or
        (3) more than five (5) full school years under a contract enteredunder this chapter has maintained the educational benefits thatthe freeway school corporation or freeway school has agreed tomaintain.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-11
Failure to achieve minimum educational benefits standards duringcontract years one through five
    Sec. 11. (a) A school corporation that enters into a contract underthis chapter to:
        (1) be a freeway school corporation; or
        (2) operate a freeway school;
must achieve the educational benefits that the school corporationagrees in the contract to achieve.
    (b) If a school corporation that enters into a contract under thischapter to be a freeway school corporation or to operate a freewayschool fails to achieve any of the educational benefits agreed uponin the contract at the end of a school year:
        (1) the state board shall review the school corporation's planand schedule for achieving the educational benefits, and, ifnecessary, modify the plan; and
        (2) the year in which the educational benefits are not achievedis not included in the five (5) year contract period.
    (c) A contract is void and a school corporation ceases immediatelyto be a freeway school corporation or to be eligible to operate afreeway school if:
        (1) the school corporation or school has previously undergonea plan and schedule review under subsection (b); and
        (2) the state board determines that the school corporation orschool failed to achieve the following that the schoolcorporation agreed to achieve in the contract:
            (A) at the end of the second, third, or fourth complete schoolyear after a contract is signed under this chapter, two (2) of

the three (3) scheduled improvements in educational benefitsthat are listed in section 7 of this chapter; or
            (B) at the end of the fifth complete school year after acontract is signed under this chapter, the educational benefitsstated in the contract.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-12
Failure to achieve minimum educational benefits standards duringand after contract year six
    Sec. 12. (a) A school corporation that enters into a contract underthis chapter to be a freeway school corporation or to operate afreeway school must maintain the educational benefits that theschool corporation agrees to achieve in the contract.
    (b) If the state board determines that a freeway school corporationor freeway school has failed to maintain the educational benefitsdescribed in subsection (a) for two (2) consecutive or nonconsecutiveschool years beginning with the end of the sixth school year after acontract is signed under this chapter:
        (1) the contract is void; and
        (2) the school corporation ceases to be:
            (A) a freeway school corporation; or
            (B) eligible to operate a freeway school;
on July 1 following the second school year in which the freewayschool corporation or freeway school failed to maintain the requirededucational benefits.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-13
Nonpublic school designated as freeway school; contract approval;accreditation
    Sec. 13. (a) A nonpublic school may enter into a contract with thestate board to become a freeway school.
    (b) The state board and the governing body of a nonpublic schoolmust enter into a contract that complies with this chapter to designatethe nonpublic school as a freeway school if the nonpublic school:
        (1) petitions the state board for designation as a freeway school;and
        (2) agrees to comply with this chapter.
    (c) A nonpublic school becomes a freeway school when thecontract is signed by:
        (1) the state superintendent, acting for the state board after amajority of the members of the board have voted in a publicsession to enter into the contract; and
        (2) the president of the governing body of the nonpublic school,acting for the governing body of the nonpublic school after amajority of the members of the governing body have voted toenter into the contract.
    (d) The state board shall accredit a nonpublic school that:
        (1) becomes a freeway school under this chapter; and        (2) complies with the terms of the contract.
As added by P.L.1-2005, SEC.10.

IC 20-26-15-14
Legality of actions taken following cessation of freeway school orfreeway school corporation
    Sec. 14. (a) This section applies to:
        (1) a school corporation that has ceased to be a freeway schoolcorporation; and
        (2) a school that has ceased to be a freeway school.
    (b) If an action taken by a school corporation or school describedin subsection (a) while a contract was in effect was legal at the timethe action was taken because of the waiver of a statute or rule in thecontract, the action remains legal after the contract becomes void.
    (c) An action taken by a school corporation or school describedin subsection (a) after the date on which a contract becomes voidmust be in compliance with existing statutes and rules.
As added by P.L.1-2005, SEC.10.