CHAPTER 7. CHARTER SCHOOL ADVANCEMENT ACCOUNT
IC 20-49-7
Chapter 7. Charter School Advancement Account
IC 20-49-7-1
"Account"
Sec. 1. As used in this chapter, "account" refers to the charterschool advancement account established within the common schoolfund under section 5 of this chapter.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-2
"Advance"
Sec. 2. As used in this chapter, "advance" refers to an advancefrom the account under this chapter.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-3
"Charter school"
Sec. 3. As used in this chapter, "charter school" refers to a schoolestablished under IC 20-24.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-4
"Operational costs"
Sec. 4. As used in this chapter, "operational costs" means costsother than construction costs incurred by:
(1) a charter school other than a conversion charter schoolduring the second six (6) months of the calendar year in whichthe charter school begins its initial operation; or
(2) a charter school, including a conversion charter school,during the second six (6) months of a calendar year in which thecharter school's most recent enrollment reported underIC 20-24-7-2(a) divided by the charter school's previous year'sADM is at least one and fifteen-hundredths (1.15).
As added by P.L.2-2006, SEC.172.
IC 20-49-7-5
Establishment of account
Sec. 5. The charter school advancement account is establishedwithin the common school fund.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-6
State board; advances; eligibility
Sec. 6. The state board shall advance money to charter schoolsfrom the account to be used for operational costs.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-7
Application Sec. 7. A charter school that desires to obtain an advance mustsubmit an application to the state board on a form prescribed by thestate board after the state board consults with the department and thebudget agency to determine the amount of the advance.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-8
Priority of advances
Sec. 8. Priority of advances for operational costs must be on abasis determined by the state board after consulting with thedepartment and the budget agency.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-9
Terms of advance
Sec. 9. The state board, after consulting with the department andupon approval of the budget agency, shall establish the terms of anadvance before the date on which the advance is made.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-10
Maximum advance; charter school other than conversion charterschool
Sec. 10. The amount of an advance for operational costs may notexceed the amount determined under STEP THREE of the followingformula:
STEP ONE: Determine the product of:
(A) the charter school's enrollment reported underIC 20-24-7-2(a); multiplied by
(B) the charter school's transition to foundation amount.
STEP TWO: Determine the quotient of:
(A) the STEP ONE amount; divided by
(B) two (2).
STEP THREE: Determine the product of:
(A) the STEP TWO amount; multiplied by
(B) one and fifteen-hundredths (1.15).
As added by P.L.2-2006, SEC.172. Amended by P.L.234-2007,SEC.266; P.L.182-2009(ss), SEC.361.
IC 20-49-7-11
Maximum advance; conversion charter school
Sec. 11. The amount of an advance for operational costs may notexceed the amount determined under STEP FOUR of the followingformula:
STEP ONE: Determine the quotient of:
(A) the charter school's transition to foundation amount;divided by
(B) two (2).
STEP TWO: Determine the difference between:
(A) the charter school's current ADM; minus (B) the charter school's ADM of the previous year.
STEP THREE: Determine the product of:
(A) the STEP ONE amount; multiplied by
(B) the STEP TWO amount.
STEP FOUR: Determine the product of:
(A) the STEP THREE amount; multiplied by
(B) one and fifteen-hundredths (1.15).
As added by P.L.2-2006, SEC.172. Amended by P.L.234-2007,SEC.267; P.L.182-2009(ss), SEC.362.
IC 20-49-7-12
Advance; maximum term
Sec. 12. Money advanced to a charter school under this chaptermay be advanced for a period not to exceed twenty (20) years.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-13
Interest; prepayment of advances
Sec. 13. A charter school to which money is advanced under thischapter must pay interest on the advance at the rate determined undersection 14 of this chapter. The state board shall provide that theadvances are prepayable by the:
(1) charter school; or
(2) general assembly;
at any time.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-14
Interest; establishment of rate
Sec. 14. The state board of finance shall establish periodically therate of interest payable on advances under this chapter. An interestrate established under this section may not:
(1) be less than one percent (1%); or
(2) exceed four percent (4%).
As added by P.L.2-2006, SEC.172.
IC 20-49-7-15
Repayment; offset against state distributions
Sec. 15. To ensure timely payment of an advance according to theterms of the advance, the state may withhold from funds due to thecharter school to which the advance is made an amount necessary topay the advance and the interest on the advance.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-16
Prepayment of advance by general assembly
Sec. 16. (a) This section applies if the general assembly prepaysan advance under section 13 of this chapter.
(b) A prepayment must be deducted from the amount appropriatedfor distributions of state tuition support.As added by P.L.2-2006, SEC.172.
IC 20-49-7-17
Required term of agreement; authority to withhold state funds
Sec. 17. The terms of an advance must include a provisionallowing the state to withhold funds due to a charter school to whichan advance is made until the advance, including interest accrued onthe advance, is paid.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-18
Offset priority; state tuition support; other state distributions
Sec. 18. If the state withholds funds under this chapter, the statefirst shall withhold funds from the distribution of state tuitionsupport to the charter school to which the advance is made. If thestate tuition support distribution is unavailable or inadequate, thestate may withhold funds from any other distribution of state fundsto the charter school.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-19
Statutory construction; advance not debt of charter school
Sec. 19. An advance under this chapter to a charter school is notan obligation of the charter school within the meaning of aconstitutional limitation on or prohibition against indebtedness. Thischapter does not relieve the organizer of the charter school of theduty to qualify the charter school for state tuition support.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-20
Statutory construction; advance not debt of state
Sec. 20. An agreement with the state board to collect and pay overamounts deducted from state tuition support for the benefit ofanother party is not a debt of the state within the meaning of thelimitation against state indebtedness under the Constitution of theState of Indiana.
As added by P.L.2-2006, SEC.172.
IC 20-49-7-21
Suspension of principal and interest payments
Sec. 21. (a) A charter school, including a conversion charterschool, that has received an advance for operational costs from thecommon school fund under this chapter does not have to makeprincipal or interest payments during the state fiscal years beginning:
(1) July 1, 2009; and
(2) July 1, 2010;
notwithstanding contrary terms in the charter school and state boardadvance agreement.
(b) The repayment term of the advance shall be extended by two(2) years to provide for the waiver described in subsection (a) even
though it may make the repayment term for the advance longer thantwenty (20) years.
As added by P.L.182-2009(ss), SEC.363.