Ind. Code § 20-49-10-1 "Advance"
Sec. 1. As used in this chapter, "advance" refers to an advance from the fund under this chapter.
As added by P.L.211-2018(ss), SEC.13.
Ind. Code ch. 20-49-10
Ind. Code ch. 20-49-10
in effectInd. Code § 20-49-10-2 "Charter school"
Sec. 2. As used in this chapter, "charter school" refers to a school established under IC 20-24. However, the term does not include a virtual charter school or an adult high school (as defined in IC 20-24-1-2.3).
As added by P.L.211-2018(ss), SEC.13.
Ind. Code § 20-49-10-3 "Fund"
Sec. 3. As used in this chapter, "fund" refers to the common school fund in the custody of the treasurer of state.
As added by P.L.211-2018(ss), SEC.13.
Ind. Code § 20-49-10-4 School corporation and charter school safety advance program established
Sec. 4. (a) The school corporation and charter school safety advance program is established. The purpose of the program is to:
(1) make advances to school corporations or charter schools (or one (1) or more coalitions of public schools applying jointly) for equipment purchases or capital improvements necessary to improve school security;
(2) increase school safety by:
(A) helping teachers, school staff, and school employees acquire specialized firearms instruction; and
(B) defraying tuition related expenses for teachers, school staff, and school employees who wish to enroll in the course of firearms instruction described in IC 10-21-3; and
(3) provide funding in the event of a school shooting to cover the costs of counseling for students, teachers, school staff, and school employees.
(b) The state board, in consultation with the secured school safety board established by IC 10-21-1-3, shall administer the program.
(c) The total amount of advances that the state board may make under this chapter during the state biennium beginning July 1, 2017, and ending June 30, 2019, may not exceed thirty-five million dollars ($35,000,000).
As added by P.L.211-2018(ss), SEC.13. Amended by P.L.218-2023, SEC.5.
Ind. Code § 20-49-10-5 Use of advance; maximum amount of advance; determination of maximum amount of advance
Sec. 5. (a) Advances made under this chapter may be used to:
(1) purchase equipment, or make capital improvements needed to:
(A) restrict access to schools;
(B) expedite the notification of first responders; or
(C) improve school security;
(2) increase school safety by:
(A) helping teachers, school staff, and school employees acquire specialized firearms instruction; and
(B) defraying tuition related expenses for teachers, school staff, and school employees who wish to enroll in the course of firearms instruction described in IC 10-21-3; or
(3) provide funding in the event of a school shooting to cover the costs of counseling for students, teachers, school staff, and school employees.
(b) The maximum amount of an advance that a school corporation or charter school may receive under this chapter may not exceed five hundred thousand dollars ($500,000).
(c) The maximum amount of the advance that the state board may approve under section 6(c) of this chapter is the lesser of:
(1) the maximum amount of an advance that may be awarded as established by subsection (b); or
(2) the amount needed to cover costs approved by the secured school safety board that are in excess of the amount awarded by the secured school safety board under IC 10-21-1-4 and the amount committed as a match by the school corporation or charter school (or coalition of public schools filing jointly) that applied for the grant under IC 10-21-1-5.
As added by P.L.211-2018(ss), SEC.13. Amended by P.L.218-2023, SEC.6.
Ind. Code § 20-49-10-6 Use of application to secured school safety board as application for an advance from common school fund; procedure to make an advance
Sec. 6. (a) An application to the secured school safety board for a matching grant under IC 10-21-1 may serve as an application for an advance under this chapter.
(b) To apply for an advance, a school corporation or charter school (or a coalition of public schools applying jointly) shall submit an application to the secured school safety board under IC 10-21-1. If the secured school safety board approves a matching grant to the school corporation or charter school (or coalition of public schools filing jointly) under IC 10-21-1-4 and the school corporation or charter school (or coalition of public schools filing jointly) requests an advance under this chapter, the secured school safety board may recommend to the state board the approval of an advance under this chapter.
(c) If an advance is recommended by the secured school safety board and the state board finds that the school corporation or charter school (or coalition of public schools filing jointly):
(1) qualifies for an advance under this chapter; and
(2) will use the advance for purposes described in section 5 of this chapter;
the state board may make the advance to the school corporation or charter school (or coalition of public schools filing jointly).
As added by P.L.211-2018(ss), SEC.13.
Ind. Code § 20-49-10-7 Terms and conditions of an advance
Sec. 7. The following apply to an advance under this chapter:
(1) A school corporation or charter school (or coalition of public schools filing jointly) must pay interest on the advance. The state board of finance shall periodically establish the rate or rates of interest payable on advances made under this chapter as long as the established interest rate or rates are not less than one percent (1%) and do not exceed four percent (4%).
(2) The state board may provide that the advances made under this chapter are prepayable at any time.
(3) The term of the advance may not exceed ten (10) years after the date of the advance.
(4) A school corporation or charter school (or a coalition of public schools applying jointly) must enter into an advance agreement with the state board before receiving an advance from the fund. The terms of the agreement must include a provision allowing the state board to withhold funds due to a school corporation or charter school to which an advance is made until the advance is paid.
As added by P.L.211-2018(ss), SEC.13.
Ind. Code § 20-49-10-8 Withholding power
Sec. 8. To ensure timely payment of an advance according to the terms of the advance under section 7 of this chapter, the state board may withhold funds due to the school corporation or charter school to which the advance is made in the amount necessary to pay the advance.
As added by P.L.211-2018(ss), SEC.13.
Ind. Code § 20-49-10-9 Withholding; eligibility determination
Sec. 9. If the state board withholds funds under this chapter, the state board first shall withhold funds from the distribution of state tuition support to the school corporation or charter school to which the advance is made. If the state tuition support distribution is unavailable or inadequate, the state board may withhold funds from any other distribution of state funds to the school corporation or charter school.
As added by P.L.211-2018(ss), SEC.13.
Ind. Code § 20-49-10-10 Property tax levy
Sec. 10. A school corporation to which an advance is made under this chapter may annually levy a property tax in the debt service fund to replace the amount withheld under this chapter in the current year from the distribution of state tuition support. The amount received from the tax must be transferred from the debt service fund to the general fund (before January 1, 2019) or the education fund (after December 31, 2018).
As added by P.L.211-2018(ss), SEC.13.
Ind. Code § 20-49-10-11 Advance not a constitutional debt
Sec. 11. An advance under this chapter to a school corporation or charter school is not an obligation of the school corporation or charter school within the meaning of a constitutional limitation on or prohibition against indebtedness.
As added by P.L.211-2018(ss), SEC.13.
Ind. Code § 20-49-10-12 Security interest; procedure to redetermine security interest; limitation
Sec. 12. A charter school may provide the state board with an adequate security interest for the repayment of an advance made to the charter school under this chapter, in the form and amount determined by the Indiana department of administration. If the school operator sells its equity interest in the school facility, the state board shall redetermine the adequacy of its security interest and may hold a public hearing to determine whether any tax dollar equity funded with the advance should be paid to the state. The state board may not approve the disbursement of an advance made under this chapter to a charter school until the charter school provides the state board with an adequate security interest for the repayment of the advance in the manner prescribed by this section.
As added by P.L.211-2018(ss), SEC.13.
Ind. Code § 20-49-10-13 Rulemaking
Sec. 13. The state board, in consultation with the secured school safety board, may adopt rules under IC 4-22-2 necessary to implement this chapter.
As added by P.L.211-2018(ss), SEC.13. Amended by P.L.93-2024, SEC.148.
Ind. Code § 20-49-10-14 Sale, transfer, or liquidation of agreements
Sec. 14. (a) Upon request of the treasurer of state, the state board of finance may periodically sell, transfer, or liquidate agreements, in whole or in part, including without limitation the sale, transfer, or liquidation of all or any part of the principal or interest to be received at any time under one (1) or more agreements that evidence the right of the state to make deductions from state tuition support to pay advances under this chapter under the terms and conditions that the state board of finance considers necessary and appropriate.
(b) Each sale, transfer, or liquidation under this section is subject to the following conditions:
(1) Each sale, transfer, or liquidation may be made only to a department, an agency, a commission, an instrumentality, or a public body of the state, including the Indiana bond bank.
(2) Each sale, transfer, or liquidation of agreements may be made only for cash.
(3) Payments under the sale, transfer, or liquidation must be made to the treasurer of state for the fund and reported to the state board of finance.
(4) The total amount of cash received by the fund from the sale may not be less than the outstanding principal amount of all or a part of the agreements sold plus accrued interest owed.
(5) If necessary to facilitate a sale, transfer, or liquidation, the state board or the state board of finance may agree to act on behalf of an entity described in subdivision (1) by collecting payment on advances that are:
(A) received directly from a school corporation, if any direct payments are received; or
(B) deducted from amounts appropriated and made available for state tuition support.
An agreement by the state board or the state board of finance under this subdivision is a valid and an enforceable contractual obligation but is not a debt of the state within the meaning of the limitation against indebtedness under the Constitution of the State of Indiana.
(6) Each proposed sale, transfer, or liquidation must be reviewed by the budget committee and approved by the budget agency.
(c) The state board of finance shall notify the state board and the department of any action that the state board of finance takes under this section.
As added by P.L.259-2019, SEC.14.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/20Fetched: 10/17/2026