Indiana Code Title 12. Human Services § 12-24-13-5

Sec. 5. (a) Except as provided in section 6 of this chapter, whenever placement of a student with a disability (as defined in IC 20-35-1-8) in a state institution is necessary for the provision of special education for that student, the cost of the student's education program, nonmedical care, and room and board shall be paid by the division rather than by the student's parents, guardian, or other responsible party.

(b) The student's parents, guardian, or other responsible party shall pay the cost of any transportation not required by the student's individualized education program (as defined in IC 20-18-2-9).  The school corporation in which the student has legal settlement (as determined under IC 20-26-11) shall pay the cost of transportation required by the student's individualized education program under IC 20-35-8-2.  However, this section does not relieve an insurer or other third party from an otherwise valid obligation to provide or pay for the services provided to the student.

(c) The Indiana state board of education and the divisions shall jointly establish a procedure and standards for determining when placement in a state institution is necessary for the provision of special education for a student.