Note: This version of section amended by P.L.213-2025, SEC.172. See also preceding version of this section amended by P.L.190-2025, SEC.5.

1. (b) State tuition support distributed to a school corporation for students enrolled in the school corporation who are receiving one hundred percent (100%) virtual instruction from a teacher employed by a third party provider with whom the school corporation has contracted is not included as state tuition support distributed to the school corporation for purposes of subsection (a).

2. (c) Before November 1, 2022, and before November 1 of each year thereafter, the department shall submit a report to the legislative council in an electronic format under IC 5-14-6 and the state budget committee that contains information as to:

   1. (1) the percent and amount that each school corporation expended and the statewide total expended for teacher compensation;
   2. (2) the percent and amount that each school corporation expended and statewide total expended for teacher benefits, including health, dental, life insurance, and pension benefits; and
   3. (3) whether the school corporation met the requirement set forth in subsection (a).
3. (d) The department shall publish the report described in subsection
4. (c) on the department's website.

5. (e) Beginning after June 30, 2024, for each state fiscal year that a school corporation fails to expend the amount for teacher compensation as required under subsection (a), the department shall submit in both a written and an electronic format a notice to the school corporation's:

   1. (1) superintendent;
   2. (2) school business officer; and

   3. (3) governing body;

      that the school corporation failed to meet the requirements set forth in subsection (a) for the applicable state fiscal year.

6. (f) If a school corporation's governing body receives a notice from the department under subsection (e), the school corporation shall do the following:

   1. (1) Publicly acknowledge receipt of the notice from the department at the governing body's next public meeting.
   2. (2) Enter into the governing body's official minutes for the meeting described in subdivision (1) acknowledgment of the notice.

   3. (3) Not later than thirty (30) days after the meeting described in subdivision (1), publish on the school corporation's website:

      1. (A) the department's notice; and
      2. (B) any relevant individual reports prepared by the department.

7. (g) If the department determines a school corporation that received one (1) or more notices from the department under subsection (e) has met the expenditure requirements required under subsection (a) for a subsequent state fiscal year, the school corporation may remove from the school corporation's website any:

   1. (1) notices the school corporation received under subsection (e); and
   2. (2) relevant individual reports prepared by the department under subsection (f)(3).

Sec. 28. (a) For each school year in a state fiscal year beginning after June 30, 2023, a school corporation shall expend an amount for teacher compensation that is not less than an amount equal to sixty-two percent (62%) of the state tuition support, other than the state tuition support described in subsection (b), distributed to the school corporation during the state fiscal year. For purposes of determining whether a school corporation has complied with this requirement, the amount a school corporation expends for teacher compensation shall include the amount the school corporation expends for adjunct teachers, supplemental pay for teachers, stipends, and for participating in a special education cooperative or an interlocal agreement or consortium that is directly attributable to the compensation of teachers employed by the cooperative or interlocal agreement or consortium. The amount a school corporation expends on teacher compensation shall also include the amount the school corporation expends on dropout recovery educational services for an at-risk student enrolled in the school corporation provided by an agreement with an eligible school that is directly attributable to the compensation of teachers employed by the eligible school. Teacher benefits include all benefit categories collected by the department for Form 9 purposes.

As added by P.L.165-2021, SEC.156. Amended by P.L.132-2022, SEC.2; P.L.246-2023, SEC.37; P.L.150-2024, SEC.26; P.L.136-2024, SEC.43; P.L.1-2025, SEC.192; P.L.213-2025, SEC.172.