The state says IPS has created a series of obstacles, from not turning over student records to removing computer monitors and food-service equipment.
The bill would also restore single-class basketball in Indiana.
Bennett wants the failure window shrunk from six years to four.
Six Indianapolis public schools will learn their fate later this month.
The two Indiana school systems still in danger of having schools seized by the state say less drastic action is called for.
There will be no waivers given to any school districts for days they had to cancel this week due to the blizzard and ice storm.
Indiana's charter school program could expand under new laws.
Vigo County educators will visit K-12 classrooms to compare US education to education overseas.