Summary of HB 1325 (Indiana, 2026) — Special Education
Purpose and Intent
HB 1325 requires collaboration among state agencies to study and report on behavioral intervention services for children in the context of special education. The bill aims to provide a comprehensive assessment of current and projected needs, costs, processes, and efficiency of services related to behavioral interventions, developmental preschool, residential placement, and related supports. The report is intended to inform the General Assembly and guide future policy directions.
- Effective date: July 1, 2026
- Reporting deadline: Not later than October 1, 2026
- Expiration: The reporting provision expires January 1, 2027
Key Provisions
Section 20-19-3-41.8 (new section)
HB 1325 adds a new statutory requirement to produce a collaborative report. The reporting partners are:
- Indiana Department of Education (DOE)
- Indiana Department of Health
- Department of Child Services (DCS)
- Office of the Secretary of Family and Social Services
The report must be delivered to the General Assembly in electronic format (IC 5-14-16) and cover specified topics, including:
1. Current and projected need for behavioral intervention services for children, with estimated costs for families, schools, and the justice system.
2. Implications of not providing timely/adequate behavioral intervention services for juveniles, including safety and monetary risks.
3. Each agency’s processes, procedures, and practices for acute behavioral intervention services for children, including navigation assistance for families, schools, and other stakeholders.
4. Comparative analysis of services from each service provider, highlighting cost discrepancies for similar services.
5. Existing collaborative initiatives among agencies and stakeholders to improve awareness, accessibility, cost, and quality of behavioral intervention services.
6. Estimated state costs for existing, planned, and potential initiatives to improve awareness, accessibility, cost, and quality.
7. Opportunities to increase efficiency to reduce time spent by state employees, individuals, and families in pursuing appropriate services.
8. Data collection on:
- Number of students using excess-cost funds for residential placement and annual district expenditures on required payments to access state funds.
- Amount spent by each public school (including charter schools) above state-provided funding on developmental preschool.
- Number of special education students receiving homebound instruction and associated costs per district/charter.
- Costs (including transportation and interpreter fees) for students eligible for but choosing not to enroll in the Indiana School for the Blind and Visually Impaired or the Indiana School for the Deaf.
Stakeholder Input
The agencies must seek input from key stakeholders in developing the report, including:
- Indiana-based organizations serving children (including those with high-acuity behaviors)
- Families of children with high-acuity behaviors seeking timely services
- Educators working with children with high-acuity behaviors
- Elected and appointed state and local officials with relevant experience
Potential Contracting
The department may contract with a third party to prepare the report.
Sunset
The reporting requirement expires January 1, 2027.
Affected Entities
State Agencies
- Indiana Department of Education
- Indiana Department of Health
- Department of Child Services
- Family and Social Services Administration (Office of the Secretary)
Local Entities
- Public schools (including charter schools) required to provide data and information for the report
- Indiana School for the Blind and Visually Impaired
- Indiana School for the Deaf (in context of enrollment data)
Fiscal and Administrative Impact
- One-time workload increase in Fiscal Year 2027 for four agencies to prepare the required report:
- DOE
- Indiana Department of Health
- DCS
- Family and Social Services Administration
- Local impact: Public schools will incur increased workload to collect and provide data; the fiscal note indicates no additional appropriations are necessary if staffing levels are typical.
- The fiscal analysis notes potential costs and savings related to improved efficiency and coordination, with emphasis on data collection, cost comparisons, and statewide planning.
Practical Implications
- The bill does not create new programs or funding; it focuses on a comprehensive, data-driven assessment of current and future needs and costs associated with behavioral interventions and related educational services.
- By identifying cost discrepancies, inefficiencies, and data gaps, the report could inform future policy decisions, potential funding allocations, and program reforms for students requiring behavioral interventions.
- The timeline centers on an expedited, multi-agency collaborative effort to deliver findings to the General Assembly by October 1, 2026, with the section expiring shortly thereafter.
