LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7069 NOTE PREPARED: Dec 30, 2020
BILL NUMBER: HB 1368 BILL AMENDED:
SUBJECT: School Employee Contracts.
FIRST AUTHOR: Rep. Wesco BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides that a certificated employee who is not a member of the
exclusive representative (union) may enter into an employment contract with a school corporation that
contains terms that differ from the terms set forth in the collective bargaining agreement. It provides that it
is not an unfair labor practice for a school corporation to enter into the employment contract. It provides that
certain provisions that apply or do not apply to certificated employees subject to collective bargaining
agreements also apply or do not apply to certificated employees that enter into such employment contracts.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Indiana Education Employment Relations Board (IEERB): The
administrative costs to the IEERB could increase if the number of negotiations at impasse and the number
of charges of unfair labor practices were to increase because of this proposal. The IEERB provides
mandatory mediation and fact-finding for all Indiana teacher bargaining processes at impasse.
Explanation of State Revenues:
Explanation of Local Expenditures: To the extent that a school corporation is prohibited from entering into
any agreement that would place it in a position of deficit financing, the fiscal impact of this proposal on the
expenditures of applicable school corporations would depend on local action. Applicable school corporations
could have added flexibility in negotiating such items as pension costs and health insurance that could result
in reduced expenditures for those school corporations. The administrative cost associated with negotiating
individual teacher employment contracts, and with resolving any discrepancies with the contract, could
increase. Administrative costs could also increase if the negotiations were to lead to an impasse, or if the
HB 1368 1
school corporation has to address charges of unfair labor practice. In the event of an impasse, school
corporations are required to pay half the cost associated with the required mediation.
Explanation of Local Revenues:
State Agencies Affected: Indiana Education Employment Relations Board.
Local Agencies Affected: School corporations.
Information Sources:
Fiscal Analyst: David Lusan, 317-232-9592.
HB 1368 2


Statutes affected:
1. Introduced House Bill (H): 20-26-5-4.7, 20-26-17-5, 20-28-9-1.5, 20-28-9-11