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 charter
school advancement account established within the common school
fund 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 advance
from 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 school
established 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 costs
other than construction costs incurred by:
(1) a charter school other than a conversion charter school
during the second six (6) months of the calendar year in which
the 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 the
charter school's most recent enrollment reported under
IC 20-24-7-2(a) divided by the charter school's previous year's
ADM 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 established
within 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 schools
from 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 must
submit an application to the state board on a form prescribed by the
state board after the state board consults with the department and the
budget 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 a
basis determined by the state board after consulting with the
department 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 and
upon approval of the budget agency, shall establish the terms of an
advance 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 charter
school
Sec. 10. The amount of an advance for operational costs may not
exceed the amount determined under STEP THREE of the following
formula:
STEP ONE: Determine the product of:
(A) the charter school's enrollment reported under
IC 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 not
exceed the amount determined under STEP FOUR of the following
formula:
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 chapter
may 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 this
chapter must pay interest on the advance at the rate determined under
section 14 of this chapter. The state board shall provide that the
advances 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 the
rate of interest payable on advances under this chapter. An interest
rate 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 the
terms of the advance, the state may withhold from funds due to the
charter school to which the advance is made an amount necessary to
pay 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 prepays
an advance under section 13 of this chapter.
(b) A prepayment must be deducted from the amount appropriated
for 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 provision
allowing the state to withhold funds due to a charter school to which
an advance is made until the advance, including interest accrued on
the 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 state
first shall withhold funds from the distribution of state tuition
support to the charter school to which the advance is made. If the
state tuition support distribution is unavailable or inadequate, the
state may withhold funds from any other distribution of state funds
to 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 not
an obligation of the charter school within the meaning of a
constitutional limitation on or prohibition against indebtedness. This
chapter does not relieve the organizer of the charter school of the
duty 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 over
amounts deducted from state tuition support for the benefit of
another party is not a debt of the state within the meaning of the
limitation against state indebtedness under the Constitution of the
State 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 charter
school, that has received an advance for operational costs from the
common school fund under this chapter does not have to make
principal 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 board
advance 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 than
twenty (20) years.
As added by P.L.182-2009(ss), SEC.363.