IN HB1349

Establishes a classroom expense fund administered by the Office of Management and Budget to provide annual advances to licensed teachers employed by school corporations for classroom supplies qualifying under the federal educator expense deduction (Section 62(a)(2)(D) of the Internal Revenue Code).

Requires fund money to supplement, not replace, existing classroom supply budgets, with identical advance amounts distributed to all full-time educators (prorated for part-time educators) before July 15 each year.

School corporations must establish separate accounts for distributions, determine advance delivery methods (direct deposit, check, debit card, or purchasing card), and account for educator expenditures under an accountable plan meeting Internal Revenue Code requirements.

Educators must sign acknowledgment statements and return any unused advances to their school corporation at the end of the school year, with returned funds sent back to the state; advances do not affect wages, employment terms, or collective bargaining.

Fund money is continually appropriated, does not revert to the state general fund, and the state treasurer shall invest unused funds with accrued interest deposited back into the classroom expense fund; effective July 1, 2014.