HB 1266

           Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
    HOUSE ENROLLED ACT No. 1266
    AN ACT to amend the Indiana Code concerning education.
    Be it enacted by the General Assembly of the State of Indiana:
    SECTION 1. IC 6-3.1-30.5-3, AS AMENDED BY P.L.92-2011,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2027]: Sec. 3. As used in this chapter, "scholarship
granting organization" refers to:
     (1) an organization that:
        (1) (A) is exempt from federal income taxation under Section
        501(c)(3) of the Internal Revenue Code; and
        (2) (B) conducts a school scholarship program without limiting
        the availability of scholarships to students of only one (1)
        participating school (as defined in IC 20-51-1-6); or
     (2) an organization that:
        (A) meets the requirements described in subdivision (1);
        and
        (B) is included on the list submitted to the Secretary of the
        Treasury of the United States for the taxable year under
        IC 20-53-1.
    SECTION 2. IC 20-19-3-42 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 42. (a) Not later than December 1, 2026, the secretary
of education shall develop a data science math pathway that
HEA 1266 — CC 1
                                  2
prepares students for emerging workforce demands.
    (b) This section expires July 1, 2027.
    SECTION 3. IC 20-19-3-44 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 44. (a) Not later than December 1, 2026, the secretary
of education shall prepare and submit a report, in an electronic
format under IC 5-14-6, to the general assembly with
recommendations on the following:
      (1) Strategies to support academically and fiscally
      underperforming schools.
      (2) Interventions, as necessary, regarding schools described in
      subdivision (1).
    (b) This section expires July 1, 2027.
    SECTION 4. IC 20-20-5.5-2, AS AMENDED BY P.L.199-2025,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) Not later than July 1, 2027, and each July 1
thereafter, The department shall evaluate, approve, and publish a list
of high quality curricular materials for use in the following subjects
and on the following timelines:
      (1) Not later than July 1, 2029, and every three (3) years
      thereafter, science.
      (2) Not later than July 1, 2029, and every three (3) years
      thereafter, technology.
      (3) Not later than July 1, 2029, and every three (3) years
      thereafter, engineering.
      (4) Not later than July 1, 2027, and every three (3) years
      thereafter, math.
      (5) Not later than July 1, 2028, and every three (3) years
      thereafter, English/language arts.
The department shall post the list approved under this subsection on
the department's website.
    (b) Subject to subsection (g), the department shall:
      (1) determine the:
          (A) process for evaluating and approving curricular materials
          under subsection (a); and
          (B) requirements for curricular materials to be approved and
          included on the list described in subsection (a); and
      (2) collaborate with teachers in evaluating and approving high
      quality curricular materials in English/language arts under
      subsection (a).
    (c) The department shall publish an annual a report that describes
the method used to conduct the evaluation required under subsection
HEA 1266 — CC 1
                                    3
(a) and that contains the results of the evaluation. The report must do
the following:
       (1) Provide a list of each curricular material evaluated and a
       summary of the evaluation for each curricular material.
       (2) Provide a listing and summary review for the high quality
       curricular materials approved by the department.
       (3) Include any clarification or response from the publisher of a
       curricular material related to the department's summary review
       provided under subdivision (2).
       (4) Include the written, exact, and standard statewide price
       provided by the publisher of the curricular material under
       subsection (e) for each high quality curricular material approved
       by the department under this section.
    (d) A governing body and superintendent may use the list approved
under subsection (a) in complying with IC 20-26-12-24.
    (e) Before the department may approve curricular material for
inclusion on the list under subsection (a), the publisher of the curricular
material must:
       (1) provide the department a written, exact, and standard
       statewide price for each curricular material; and
       (2) enter into a data share agreement with the department in the
       manner prescribed by the department.
    (f) A publisher may request that an update to the publisher's
curricular materials and corresponding prices replace the information
on the curricular materials set forth in the report under subsection (c).
    (g) At a minimum, the process for evaluating curricular materials
and the requirements for curricular materials to be approved and
included on the list described in subsection (a) must include the
following:
       (1) The availability and use of benchmark, formative, interim, or
       similar assessments to identify students that require remediation
       and provide individualized instruction.
       (2) The incorporation of experiential learning opportunities.
       (3) An evaluation of the benchmark, formative, interim, or similar
       assessment data provided by the publisher of the curricular
       material pursuant to the data share agreement described in
       subsection (e).
       (4) The alignment of the curricular material to Indiana's academic
       standards developed by the department under IC 20-31-3-2.
       (5) The age appropriateness of the content.
    (h) Not later than July 1, 2024, the department shall conduct a
statewide survey to determine which curricular materials have been
HEA 1266 — CC 1
                                   4
adopted for use in teaching science, technology, engineering, and
mathematics in each state accredited school. Each state accredited
school shall:
      (1) participate in the statewide survey conducted under this
      subsection; and
      (2) provide the information requested by the department as part
      of the statewide survey;
in the manner prescribed by the department. This subsection expires
January 1, 2025.
    SECTION 5. IC 20-20-5.5-3, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) The secretary of education shall notify the
governing bodies of each school corporation, charter school, and state
accredited nonpublic school immediately of:
      (1) the initial publication and annual update on the department's
      Internet web site website of the report described in section 2(c)
      of this chapter, including the Internet web site website address
      where the report is published; and
      (2) updates of the following types of information in the report
      described in section 2(c) of this chapter:
          (A) The addition of materials.
          (B) The removal of materials.
          (C) Changes in the per unit price of curricular materials that
          exceed five percent (5%).
    (b) A notification under this section must state that:
      (1) the reviews of curricular materials included in the report
      described in section 2(c) of this chapter are departmental reviews
      only; and
      (2) each governing body has authority to adopt curricular
      materials for a school corporation.
    SECTION 6. IC 20-20-52-6, AS ADDED BY P.L.232-2025,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6. (a) Except as provided under subsection (e), not
later than October 31, 2025, a local centralized school facilities board
is established for participating school corporations and schools.
    (b) Each local board must be independent from any school
corporation and school.
    (c) The local board consists of seven (7) an odd number of not less
than five (5) members:
      (1) who represent a partnering community organization; and
      (1) (2) who are:
HEA 1266 — CC 1
                                    5
          (A) members or designees of members of the governing
          body of a participating school corporation, or the
          equivalent for a participating charter school or nonpublic
          school; and
          (B) proportionately appointed as either representatives of
          participating school corporations, charter schools, or
          nonpublic schools described in section 3(2) of this chapter
          based on:
            (A) (i) the total pupil enrollment of the participating school
            corporations;
            (B) (ii) the total pupil enrollment of participating charter
            schools; and
            (C) (iii) the total pupil enrollment of participating nonpublic
            schools;
          that are partnering under the pilot program. and
      (2) are members of the:
          (A) governing body of a participating school corporation;
          (B) charter school board of a participating charter school; or
          (C) equivalent of a governing body for a participating
          nonpublic school;
      described in subdivision (1).
    (d) Each local board must collaborate with individuals or entities
that have expertise in the following:
      (1) Facility management, construction, or real estate.
      (2) Public finance or public debt issuance.
      (3) Demographic analysis and urban planning.
      (4) Organizational effectiveness, operations management, and
      implementing best practices.
      (5) Government contracts.
      (6) Budget development and oversight.
    (e) If a school corporation or school, in partnership with other
school corporations, schools, or both other school corporations and
schools, receives approval to participate in the:
      (1) pilot program; and
      (2) student transportation pilot program under IC 20-20-53;
the school corporation or schools may elect to establish not later than
October 31, 2025, one (1) local centralized school facilities and
transportation board consisting of the members described in subsection
(c) that has the powers and duties and is subject to the requirements of
a local centralized school facilities board under this chapter and local
student transportation board under IC 20-20-53.
    SECTION 7. IC 20-20-53-6, AS ADDED BY P.L.232-2025,
HEA 1266 — CC 1
                                    6
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6. (a) Except as provided under subsection (e), not
later than October 31, 2025, a local student transportation board is
established for participating school corporations and schools.
    (b) Each local board must be independent from any school
corporation and school.
    (c) The local board consists of seven (7) an odd number of not less
than five (5) members:
      (1) who represent a partnering community organization; and
      (1) (2) who are:
          (A) members or designees of members of the governing
          body of a participating school corporation, or the
          equivalent for a participating charter school or nonpublic
          school; and
          (B) proportionately appointed as either representatives of
          participating school corporations, charter schools, or
          nonpublic schools described in section 3(2) of this chapter
          based on:
            (A) (i) the total pupil enrollment of the participating school
            corporations;
            (B) (ii) the total pupil enrollment of participating charter
            schools; and
            (C) (iii) the total pupil enrollment of participating nonpublic
            schools;
          that are partnering under the pilot program. and
      (2) are members of the:
          (A) governing body of a participating school corporation;
          (B) charter school board of a participating charter school; or
          (C) equivalent of a governing body for a participating
          nonpublic school;
      described in subdivision (1).
    (d) Each local board must collaborate with individuals or entities
that have expertise in the following:
      (1) Transportation logistics, particularly involving movement of
      passengers.
      (2) Finance and business.
      (3) Organizational effectiveness, operations management, and
      implementing best practices.
      (4) Government contracts.
      (5) Budget development and oversight.
    (e) If a school corporation or school, in partnership with other
school corporations, schools, or both other school corporations and
HEA 1266 — CC 1
                                    7
schools, receives approval to participate in the:
     (1) pilot program; and
     (2) centralized school facilities pilot program under IC 20-20-52;
the school corporation or schools may elect to establish not later than
October 31, 2025, one (1) local centralized school facilities and
transportation board that has the powers and duties and is subject to the
requirements of a local centralized school facilities board under
IC 20-20-52 and local student transportation board under this chapter.
   SECTION 8. IC 20-28-4-5, AS AMENDED BY P.L.192-2014,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5. An individual who wishes to participate in the
program must have one (1) of the following qualifications:
     (1) For a program participant who seeks to obtain a license to
     teach in grades 5 through 12, one (1) of the following:
        (A) A bachelor's degree or the equivalent with a grade point
        average of at least three (3.0) on a four (4.0) point scale from
        an accredited postsecondary educational institution in the
        subject area that the individual intends to teach.
        (B) A graduate degree from an accredited postsecondary
        educational institution in the subject area or a related field that
        the individual intends to teach.
        (C) Both:
           (i) A bachelor's degree from an accredited postsecondary
           educational institution with a grade point average of at least
           two and five-tenths (2.5) on a four (4.0) point scale and
           either:
           (i) eighteen (18) credit hours in the subject area the
           individual intends to teach; or
           (ii) five (5) years professional experience in the subject or a
           related area that the individual intends to teach.
        (D) Both:
           (i) a bachelor's degree from an accredited postsecondary
           educational institution; and
           (ii) proof that the individual has passed the state approved
           content area examination in the subject area that the
           individual intends to teach.
     (2) For a program participant who seeks to obtain a license to
     teach in kindergarten through grade 6, one (1) of the following:
        (A) A bachelor's degree or the equivalent with a grade point
        average of at least three (3.0) on a four (4.0) point scale from
        an accredited institution of higher education.
        (B) Both:
HEA 1266 — CC 1
                                   8
           (i) a bachelor's degree from an accredited postsecondary
           educational institution with a grade point average of at least
           two and five-tenths (2.5) on a four (4.0) point scale; and
           (ii) five (5) years professional experience in an education
           related field, as determined by the department.
         (C) Both:
           (i) a bachelor's degree from an accredited postsecondary
           educational institution; and
           (ii) proof that the individual has passed the state approved
           content area examination in the subject area that the
           individual intends to teach.
     (3) For a program participant who seeks to obtain a license to
     teach in prekindergarten through grade 3, one (1) of the
     following:
         (A) A bachelor's degree or the equivalent with a grade point
         average of at least three (3.0) on a four (4.0) point scale from
         an accredited institution of higher education.
         (B) Both:
           (i) a bachelor's degree from an accredited postsecondary
           educational institution with a grade point average of at least
           two and five-tenths (2.5) on a four (4.0) point scale; and
           (ii) five (5) years professional experience in an education
           related field, as determined by the department.
         (C) Both:
           (i) a bachelor's degree from an accredited postsecondary
           educational institution; and
           (ii) proof that the individual has passed the state approved
           content area examination in the subject area that the
           individual intends to teach.
    SECTION 9. IC 20-28-5-21, AS AMENDED BY P.L.275-2019,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 21. To be eligible for a career specialist permit to
teach in a secondary school, an applicant must meet one (1) of the
following:
     (1) The applicant:
         (A) has a bachelor's degree with a cumulative grade point
         average of at least 3.0 on a 4.0 scale (or its equivalent if
         another grading scale is used) in the content area in which the
         applicant intends to teach;
         (B) has passed the approved content area examination in the
         content area in which the applicant intends to teach;
         (C) demonstrates proficiency in the area of pedagogy under
HEA 1266 — CC 1
                                  9
        procedures prescribed by the department; and
        (D) has, within the immediately preceding five (5) years, at
        least four thousand (4,000) clock hours of documented
        occupational experience in the content area in which the
        applicant intends to teach.
     (2) The applicant:
        (A) meets the requirements under subdivision (1)(A) or (1)(B);
        (B) demonstrates proficiency in the area of pedagogy under
        procedures prescribed by the department; and
        (C) has, within the immediately preceding seven (7) years, at
        least five thousand (5,000) clock hours of documented
        occupational experience in the content area in which the
        applicant intends to teach.
     (3) The applicant:
        (A) is at least twenty-one (21) years of age;
        (B) will teach aviation ground instruction; and
        (C) meets at least one (1) of the following conditions:
          (i) The applicant has passed the Federal Aviation
          Administration advanced ground instructor and
          fundamentals of instruction tests and been issued a valid
          Federal Aviation Administration advanced ground
          instructor certificate.
          (ii) The applicant possesses a valid Federal Aviation
          Administration certified flight instructor or certified
          flight instructor instrument certificate.
     (4) The applicant:
        (A) is at least twenty-one (21) years of age;
        (B) will teach flight instruction; and
        (C) possesses a valid Federal Aviation Administration:
          (i) certified flight instructor; or
          (ii) certified flight instructor instrument;
        certificate with the appropriate Federal Aviation
        Administration aircraft ratings for the flight instruction
        being provided.
   SECTION 10. IC 20-28-5-30 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 30. (a) As used in this section,
"emergency permit" refers to an emergency permit described in
511 IAC 16-4-1 or its successor rule.
   (b) An emergency permit may be renewed up to two (2) times to
an individual enrolled in an alternative teacher certification
program under section 12.5 of this chapter if the program provides
HEA 1266 — CC 1
                                   10
documentation verifying the individual's good standing in the
program to the department.
    SECTION 11. IC 20-28-9-1.5, AS AMENDED BY P.L.214-2025,
SECTION 123, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 1.5. (a) This subsection governs
salary increases for a teacher employed by a school corporation.
Compensation attributable to additional degrees or graduate credits
earned before the effective date of a local compensation plan created
under this chapter before July 1, 2015, shall continue for school years
beginning after June 30, 2015. Compensation attributable to additional
degrees for which a teacher has started course work before July 1,
2011, and completed course work before September 2, 2014, shall also
continue for school years beginning after June 30, 2015. For school
years beginning after June 30, 2022, a school corporation may provide
a supplemental payment to a teacher in excess of the salary specified
in the school corporation's compensation plan when doing so is in the
best interest of students. A supplement provided under this subsection
is not subject to collective bargaining and, under IC 20-29-6-3(d), a
school corporation may exclude, for this purpose, a portion of the
revenue available for bargaining from education fund revenues
included in IC 20-29-2-6. Such a supplement is in addition to any
increase permitted under subsection (b).
    (b) Subject to subsection (e), increases or increments in a local
salary range must be based upon a combination of the following
factors:
      (1) A combination of the following factors taken together may
      account for not more than fifty percent (50%) of the calculation
      used to determine a teacher's increase or increment:
          (A) The number of years of a teacher's experience.
          (B) The possession of either:
            (i) additional content area degrees beyond the requirements
            for employment; or
            (ii) additional content area degrees and credit hours beyond
            the requirements for employment, if required under an
            agreement bargained under IC 20-29.
      (2) The results of an evaluation conducted under IC 20-28-11.5.
      (3) The assignment of instructional leadership roles, including the
      responsibility for conducting evaluations under IC 20-28-11.5.
      (4) The academic needs of students in the school corporation,
      including employment in a high need area such as those identified
      under IC 20-29-3-15(b)(27). This factor may not account for less
      than ten percent (10%) of the calculation used to determine a
HEA 1266 — CC 1
                                    11
       teacher's increase or increment.
    (c) To provide greater flexibility and options, a school corporation
may further differentiate the amount of salary increases or increments
determined for teachers. A school corporation shall base a
differentiated amount under this subsection on reasons the school
corporation determines are appropriate, which may include the:
       (1) subject or subjects taught by a given teacher;
       (2) importance of retaining a given teacher at the school
       corporation;
       (3) need to attract an individual with specific qualifications to fill
       a teaching vacancy; and
       (4) offering of a new program or class.
    (d) A school corporation may provide differentiated increases or
increments under subsection (b), and in excess of the percentage
specified in subsection (b)(1), in order to:
       (1) reduce the gap between the school corporation's minimum
       teacher salary and the average of the school corporation's
       minimum and maximum teacher salaries; or
       (2) allow teachers currently employed by the school corporation
       to receive a salary adjusted in comparison to starting base salaries
       of new teachers.
    (e) A school corporation shall differentiate the amount of salary
increases or increments for teachers who possess a required literacy
endorsement under described in IC 20-28-5-19.7.
    (f) The Indiana education employment relations board established
in IC 20-29-3-1 shall publish a model compensation plan with a model
salary range that a school corporation may adopt.
    (g) Each school corporation shall submit its local compensation plan
to the Indiana education employment relations board. A local
compensation plan must specify the range for teacher salaries. The
Indiana education employment relations board shall publish the local
compensation plans on the Indiana education employment relations
board's website.
    (h) The Indiana education employment relations board shall review
a compensation plan for compliance with this section as part of its
review under IC 20-29-6-6.1. The Indiana education employment
relations board has jurisdiction to determine compliance of a
compensation plan submitted under this section.
    (i) This chapter may not be construed to require or allow a school
corporation to decrease the salary of any teacher below the salary the
teacher was earning on or before July 1, 2015, if that decrease would
be made solely to conform to the new compensation plan.
HEA 1266 — CC 1
                                   12
    (j) After June 30, 2011, all rights, duties, or obligations established
under IC 20-28-9-1 before its repeal are considered rights, duties, or
obligations under this section.
    (k) An employment agreement described in IC 20-28-6-7.3 between
an adjunct teacher and a school corporation is not subject to this
section.
    SECTION 12. IC 20-28-9-27, AS AMENDED BY P.L.213-2025,
SECTION 171, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 27. (a) As used in this section,
"funding floor" means the amount a school corporation expended for
full-time teacher salaries during a particular state fiscal year.
    (b) Subject to subsections (d) and (e), if the amount of state tuition
support distributed to a school corporation for a particular state fiscal
year is greater than the amount of state tuition support distributed to the
school corporation for the preceding state fiscal year, the school
corporation may not expend an amount for full-time teacher salaries
during the particular state fiscal year that is less than the funding floor
for the preceding state fiscal year.
    (c) For purposes of this section, the amount a school corporation
expends for full-time teacher salaries shall include the amount the
school corporation expends for participating in:
       (1) a special education cooperative; or
       (2) a career and technical education cooperative; or
       (3) an interlocal agreement;
that is directly attributable to the salaries of full-time teachers
employed by the cooperative. as determined by the department.
    (d) For purposes of this subsection, stipends paid using teacher
appreciation grants under IC 20-43-16 are not considered. If a school
corporation has awarded stipends to a majority of the school
corporation's teachers in each of the two (2) preceding consecutive
state fiscal years, an amount equal to the lesser of the total amount of
stipends awarded in each of those state fiscal years shall be added to
the school corporation's funding floor for the preceding state fiscal year
described under subsection (b).
    (e) Beginning after June 30, 2024, for each state fiscal year that a
school corporation fails to meet the expenditure requirements regarding
full-time teacher salaries under subsection (b), the department shall
submit in both a written and an electronic format a notice to the school
corporation's:
       (1) superintendent;
       (2) school business officer; and
       (3) governing body;
HEA 1266 — CC 1
                                   13
that the school corporation failed to meet the requirements set forth in
subsection (b) for the applicable state fiscal year.
    (f) If a school corporation's governing body receives a notice from
the department under subsection (e), the school corporation shall do the
following:
       (1) Publicly acknowledge receipt of the notice from the
       department at the governing body's next public meeting.
       (2) Enter into the governing body's official minutes for the
       meeting described in subdivision (1) acknowledgment of the
       notice.
       (3) Not later than thirty (30) days after the meeting described in
       subdivision (1), publish on the school corporation's website:
           (A) the department's notice; and
           (B) any relevant individual reports prepared by the
           department.
    (g) If the department determines a school corporation that received
one (1) or more notices from the department under subsection (e) has
met the expenditure requirements required under subsection (b) for a
subsequent state fiscal year, the school corporation may remove from
the school corporation's website any:
       (1) notices the school corporation received under subsection (e);
       and
       (2) relevant individual reports prepared by the department under
       subsection (f)(3).
    SECTION 13. IC 20-30-7-1, AS AMENDED BY P.L.201-2025,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. (a) Except as provided in subsection (c),
the state board may department shall prescribe a program of summer
school education for public schools. Subject to subsection (b), the state
board shall adopt rules under IC 4-22-2 to the department shall
provide for:
       (1) summer school programs guidelines; and
       (2) the state distribution formula for any money appropriated by
       the general assembly for summer school education to allow for
       funding for approved summer school programs on a per student
       basis, which may include differentiated funding based on the
       course the student is enrolled in and the length of time of the
       summer school program.
    (b) The state board department shall give priority reimbursement
for summer school courses that include curriculum aligned with the
science of reading designated by the department to support students in:
       (1) grade 2 who are at risk of not being reading proficient; and
HEA 1266 — CC 1
                                   14
      (2) grade 3 who are not reading proficient;
as indicated on the determinant evaluation of reading skills approved
by the state board under IC 20-32-8.5-2.
    (c) A state accredited nonpublic school and an eligible school (as
defined in IC 20-51-1-4.7) shall be eligible for summer school funding
for courses that include curriculum aligned with the science of reading
designated by the department to support students in:
      (1) grade 2 who are at risk of not being reading proficient; and
      (2) grade 3 who are not reading proficient;
as indicated on the determinant evaluation of reading skills approved
by the state board under IC 20-32-8.5-2.
    SECTION 14. IC 20-31-4.1-4, AS AMENDED BY P.L.11-2023,
SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4. (a) Subject to subsection (b) and section 7 of
this chapter, a school or group of schools accredited under this chapter
may submit an application to the state board, in a manner prescribed by
the state board, requesting flexibility and to waive compliance with any
provision in this title or 511 IAC in order to do one (1) or more of the
following:
      (1) Improve student performance and outcomes.
      (2) Offer the applicant flexibility in the administration of
      educational programs or improve the efficiency of school
      operations.
      (3) Promote innovative educational approaches to student
      learning.
      (4) Advance the mission or purpose of the school or group of
      schools.
    (b) The application submitted under subsection (a) must include the
following:
      (1) A list of the one (1) or more provisions in this title, 511 IAC,
      or this title and 511 IAC that the school or group of schools is
      requesting that the state board waive.
      (2) The following information:
          (A) The specific goal or outcome or goals or outcomes that the
          school or group of schools intends to achieve by waiving the
          provisions described in subdivision (1).
          (B) How the specific goals or outcomes described in clause
          (A) are likely to be achieved by waiving compliance with the
          provisions described in subdivision (1).
      (3) For an application submitted by:
          (A) the governing body of a school corporation, a copy of the
          resolution adopted by the governing body approving the
HEA 1266 — CC 1
                                   15
         submission of the application;
         (B) a charter school, written authorization by the charter
         school organizer approving the submission of the application;
         or
         (C) a nonpublic school, written authorization by the person or
         agency in active charge and management of the nonpublic
         school approving the submission of the application.
   (c) To be eligible to waive IC 20-30-2-3 for the purposes of
conducting a four (4) day school week at a school, a school must
meet the following requirements:
      (1) Provide transportation to a school that conducts a five (5)
      day school week that serves the same grade level for any
      student who would otherwise be assigned to a school that
      conducts a four (4) day school week.
      (2) Be placed in the highest performance and improvement
      category or designation by the department under IC 20-31-8.
      (3) Meet the minimum teacher salary threshold under
      IC 20-28-9-26.
      (4) Provide enrichment and remediation opportunities on the
      day that a regular school day is not conducted at no cost to a
      parent of a student or student.
   SECTION 15. IC 20-32-5.1-13, AS AMENDED BY P.L.150-2024,
SECTION 51, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 13. (a) The proficiency of students under a
statewide summative assessment must be reported to the state board
not later than:
      (1) for the 2018-2019 2025-2026 school year, August 15, 2019;
      September 1, 2026; and
      (2) for each school year beginning after June 30, 2019, June 30,
      2026, July 1 of the year in which the statewide summative
      assessment is administered.
   (b) Reports of student scores on the statewide summative
assessment must be:
      (1) returned to the school corporation, charter school, state
      accredited nonpublic school, or eligible school (as defined in
      IC 20-51-1-4.7) that administered the test; and
      (2) accompanied by a guide for interpreting scores.
   (c) Subject to approval by the state board, reports of student results
on computer scored items under a statewide summative assessment
may be returned to schools regardless of whether the hand scored items
are returned.
   (d) After reports of final student scores on the statewide summative
HEA 1266 — CC 1
                                   16
assessment are returned to a school corporation, charter school, state
accredited nonpublic school, or eligible school (as defined in
IC 20-51-1-4.7), the school corporation or school shall promptly do the
following:
       (1) Give each student and the student's parent the student's
       statewide summative assessment test scores, including the
       summary described in section 14.5 of this chapter.
       (2) Make available for inspection to each student and the student's
       parent the following:
          (A) A copy of the student's scored responses.
          (B) A copy of the anchor papers and scoring rubrics used to
          score the student's responses.
A student's parent or the student's principal may request a rescoring of
a student's responses to a statewide summative assessment, including
a student's essay. A student's final score on a rescored statewide
summative assessment must reflect the student's actual score on the
rescored statewide summative assessment regardless of whether the
student's score decreased or improved on the rescored assessment.
    (e) The department shall develop criteria to provide a student's
parent the opportunity to inspect questions in a manner that will not
compromise the validity or integrity of a statewide summative
assessment.
    (f) A student's statewide summative assessment scores may not be
disclosed to the public.
    (g) The department may not release less than ten (10) items per
subject matter per grade level. The state board and department shall:
       (1) post:
          (A) the questions; and
          (B) with the permission of each student's parent, student
          answers that are exemplary responses to the released
          questions;
       on the websites of the state board and department; and
       (2) publicize the availability of the questions and answers to
       schools, educators, and the public.
A student answer posted under this subsection may not identify the
student who provided the answer.
    SECTION 16. IC 20-32-6.5-4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 4. (a) The department shall
develop a teaching and learning framework for the implementation
of mathematics academic standards created under IC 20-31-3-2.
    (b) The framework described in subsection (a) must include a
HEA 1266 — CC 1
                                17
kindergarten through grade 5 mathematics:
      (1) proficiency implementation guide; and
      (2) daily instruction recommendation that requires a
      minimum of:
         (A) sixty (60) minutes for Tier 1 instruction; and
         (B) twenty (20) minutes for mathematics interventions.
   SECTION 17. IC 20-43-8-7.5, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 7.5. (a) The department of workforce development
commission for higher education shall designate each career and
technical education program as:
      (1) an apprenticeship program;
      (2) a cooperative education program;
      (3) a work based learning program;
      (4) a high value program;
      (5) a moderate value program;
      (6) a less than moderate value program;
      (7) an introductory program; or
      (8) a foundational career and technical education course.
The designation of career and technical education programs by the
department of workforce development commission for higher
education under this section must be reviewed and approved by the
state board as provided in this section.
   (b) Not later than December 1, 2019, and each December 1
thereafter, of each year, the department of workforce development
commission for higher education shall designate each career and
technical education program as:
      (1) an apprenticeship program;
      (2) a work based learning program;
      (3) a high value level 1 program;
      (4) a high value level 2 program;
      (5) a moderate value level 1 program;
      (6) a moderate value level 2 program;
      (7) a less than moderate value level 1 program;
      (8) a less than moderate value level 2 program;
      (9) a planning for college and career course; or
      (10) an introductory program.
The designation of career and technical education programs by the
department of workforce development commission for higher
education under this section must be reviewed and approved by the
state board as provided in this section.
HEA 1266 — CC 1
                                   18
    (c) If a new career and technical education program is created by
rule, the department of workforce development commission for higher
education shall determine the category in which the program is
designated under subsection (a) or (b). A career and technical
education program must be approved by the department of workforce
development commission for higher education in order for a school
corporation to be eligible to receive a grant amount for the career and
technical education program under section 15 of this chapter.
    (d) Not later than December 1 of each year, the department of
workforce development commission for higher education shall
provide a report to the state board that includes the following
information:
       (1) A list of the career and technical education courses for the
       next school year that are designated by the department of
       workforce development commission for higher education under
       this section.
       (2) The labor market demand used to designate each career and
       technical education program under this section.
       (3) The average wage level used to designate each career and
       technical education program under this section.
       (4) If applicable, the labor market demand and average wage level
       data for specific regions, counties, and municipalities.
       (5) Any other information pertinent to the methodology used by
       the department of workforce development commission for
       higher education to designate each career and technical
       education program under this section.
    (e) Not later than January 1 of each year, the state board shall
review and approve the report provided by the department of workforce
development commission for higher education under subsection (d)
at a public meeting to ensure that the list of courses is in compliance
with the long range state plan developed under IC 20-20-38-4. Not later
than January 1 of each year, the state board shall send its determination
to the department of workforce development. commission for higher
education. Upon receipt of the state board's determination, the
department of workforce development commission for higher
education shall provide the approved report to the department.
    (f) The department of workforce development commission for
higher education shall publish the approved report under subsection
(e) on the department of workforce development's Internet web site,
commission for higher education's website, including the following:
       (1) The list of career and technical education programs that are
       designated by the department of workforce development
HEA 1266 — CC 1
                                  19
      commission for higher education under this section.
      (2) The labor market demand used to designate each career and
      technical education program under this section.
      (3) The average wage level used to designate each career and
      technical education program under this section.
      (4) If applicable, the labor market demand and average wage level
      data for specific regions, counties, and municipalities.
      (5) Any other information pertinent to the methodology used by
      the department of workforce development commission for
      higher education to designate each career and technical
      education program under this section.
In addition, the department shall notify all school corporations of the
state board's approval of the report under subsection (e) and provide a
link within the notice to the approved report published on the
department of workforce development's Internet web site commission
for higher education's website under this subsection.
   SECTION 18. IC 20-43-8-10, AS AMENDED BY P.L.230-2017,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 10. If a school corporation determines that the
categories of career and technical education programs issued by the
department of workforce development commission for higher
education and approved by the state board under section 7.5 of this
chapter are not representative of the employment demand in the region
surrounding the school corporation, the school corporation may petition
the department of workforce development commission for higher
education to recategorize for the school corporation the career and
technical education programs offered by the school corporation
according to the employment demand in the region surrounding the
school corporation. The petition must include information supporting
the school corporation's determination that the categories of career and
technical education programs by the department of workforce
development commission for higher education under section 7.5 of
this chapter are not representative of the employment demand in the
region surrounding the school corporation. The state board shall review
and approve any course recategorization by the department of
workforce development commission for higher education under this
section.
   SECTION 19. IC 20-43-8-15, AS AMENDED BY P.L.213-2025,
SECTION 189, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 15. (a) This subsection applies to
the state fiscal year beginning July 1, 2025, and ending June 30, 2026.
A school corporation's career and technical education enrollment grant
HEA 1266 — CC 1
                                   20
for a state fiscal year is the sum of the amounts determined under the
following STEPS:
      STEP ONE: Determine for each career and technical education
      program provided by the school corporation:
          (A) the number of credit hours of the program (one (1) credit,
          two (2) credits, or three (3) credits); multiplied by
          (B) the number of pupils enrolled in the program; multiplied
          by
          (C) the following applicable amount:
            (i) Seven hundred ten dollars ($710) for a career and
            technical education program designated by the department
            of workforce development as a high value level 1 program
            under section 7.5 of this chapter.
            (ii) One thousand sixty-five dollars ($1,065) for a career and
            technical education program designated by the department
            of workforce development as a high value level 2 program
            under section 7.5 of this chapter.
            (iii) Three hundred ninety-eight dollars ($398) for a career
            and technical education program designated by the
            department of workforce development as a moderate value
            level 1 program under section 7.5 of this chapter.
            (iv) Five hundred ninety-seven dollars ($597) for a career
            and technical education program designated by the
            department of workforce development as a moderate value
            level 2 program under section 7.5 of this chapter.
            (v) One hundred ninety-nine dollars ($199) for a career and
            technical education program designated by the department
            of workforce development as a less than moderate value
            level 1 program under section 7.5 of this chapter.
            (vi) Two hundred ninety-eight dollars ($298) for a career
            and technical education program designated by the
            department of workforce development as a less than
            moderate value level 2 program under section 7.5 of this
            chapter.
      STEP TWO: Determine the number of pupils enrolled in an
      apprenticeship program or a work based learning program
      designated under section 7.5 of this chapter multiplied by four
      hundred ninety-seven dollars ($497).
      STEP THREE: Determine the number of pupils enrolled in an
      introductory program designated under section 7.5 of this chapter
      multiplied by two hundred ninety-eight dollars ($298).
      STEP FOUR: Determine the number of pupils enrolled in a
HEA 1266 — CC 1
                                   21
     planning for college and career course under section 7.5 of this
     chapter at the school corporation that is approved by the
     department of workforce development multiplied by one hundred
     forty-nine dollars ($149).
     STEP FIVE: Determine the number of pupils who travel from the
     school in which they are currently enrolled to another school to
     participate in a career and technical education program in which
     pupils from multiple schools are served at a common location
     multiplied by one hundred forty-nine dollars ($149).
   (b) This subsection applies to state fiscal years beginning after June
30, 2026. A school corporation's career and technical education
enrollment grant for a state fiscal year is the sum of the amounts
determined under the following STEPS:
     STEP ONE: Determine for each career and technical education
     program provided by the school corporation:
        (A) the number of credit hours of the program (one (1) credit,
        two (2) credits, or three (3) credits); multiplied by
        (B) the number of pupils enrolled in the program; multiplied
        by
        (C) the following applicable amount:
           (i) Seven hundred twelve dollars ($712) for a career and
           technical education program designated by the department
           of workforce development commission for higher
           education as a high value level 1 program under section 7.5
           of this chapter.
           (ii) One thousand sixty-nine dollars ($1,069) for a career and
           technical education program designated by the department
           of workforce development commission for higher
           education as a high value level 2 program under section 7.5
           of this chapter.
           (iii) Three hundred ninety-nine dollars ($399) for a career
           and technical education program designated by the
           department of workforce development commission for
           higher education as a moderate value level 1 program
           under section 7.5 of this chapter.
           (iv) Five hundred ninety-nine dollars ($599) for a career and
           technical education program designated by the department
           of workforce development commission for higher
           education as a moderate value level 2 program under
           section 7.5 of this chapter.
           (v) Two hundred dollars ($200) for a career and technical
           education program designated by the department of
HEA 1266 — CC 1
                                   22
           workforce development commission for higher education
           as a less than moderate value level 1 program under section
           7.5 of this chapter.
           (vi) Two hundred ninety-nine dollars ($299) for a career and
           technical education program designated by the department
           of workforce development commission for higher
           education as a less than moderate value level 2 program
           under section 7.5 of this chapter.
     STEP TWO: Determine the number of pupils enrolled in an
     apprenticeship program or a work based learning program
     designated under section 7.5 of this chapter multiplied by four
     hundred ninety-nine dollars ($499).
     STEP THREE: Determine the number of pupils enrolled in an
     introductory program designated under section 7.5 of this chapter
     multiplied by Two hundred ninety-nine dollars ($299).
     STEP FOUR: Determine the number of pupils enrolled in a
     planning for college and career course under section 7.5 of this
     chapter at the school corporation that is approved by the
     department of workforce development commission for higher
     education multiplied by one hundred fifty dollars ($150).
     STEP FIVE: Determine the number of pupils who travel from the
     school in which they are currently enrolled to another school to
     participate in a career and technical education program in which
     pupils from multiple schools are served at a common location
     multiplied by one hundred fifty dollars ($150).
   SECTION 20. IC 20-43-8-16, AS ADDED BY P.L.230-2017,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 16. The department of workforce development
commission for higher education shall adopt rules under IC 4-22-2
that are necessary to implement the duties of the department of
workforce development commission for higher education under this
chapter.
   SECTION 21. IC 20-43-16-5, AS ADDED BY P.L.213-2025,
SECTION 198, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) A grant received by a
school corporation or charter school, may only be used to pay stipends
within the amounts described in section 8 of this chapter to one (1) or
more teachers selected by the school corporation or charter school who:
     (1) have instructed students in a school or district for at least one
     (1) school year prior to the grant distribution year;
     (2) maintain employment at the same school or district at the time
     of the grant distribution;
HEA 1266 — CC 1
                                   23
      (3) are determined to significantly impact student outcomes using
      national, state, or local assessment measures; and
      (4) are designated in one (1) of the categories described in section
      6 of this chapter.
    (b) A grant received by a school corporation or school may be
used to pay the Federal Insurance Contributions Act (FICA) and
Indiana state teachers' retirement fund costs associated with
distributing a stipend under this chapter.
    SECTION 22. IC 20-46-1-21, AS AMENDED BY P.L.68-2025,
SECTION 221, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 21. (a) This section:
      (1) except as provided in subdivision (2), applies to revenue
      received from a resolution that is approved by the governing body
      to impose a referendum levy under section 8 or 8.5 of this chapter
      after May 10, 2023, for a school corporation located in:
          (A) Lake County;
          (B) Marion County;
          (C) St. Joseph County; or
          (D) Vanderburgh County;
      through the full term of the referendum levy; and
      (2) does not apply to revenue received from a referendum levy if:
          (A) the governing body of the school corporation approves the
          referendum levy in a resolution adopted under section 8 or 8.5
          of this chapter; and
          (B) the referendum levy is imposed for the first time with
          property taxes first due and payable in a calendar year
          beginning after December 31, 2027.
    (b) Subject to subsections (f) and (h), the county auditor in the
county in which the school corporation is located shall distribute an
amount of revenue as provided under subsection (e) from the revenue
collected from a tax levy imposed under this chapter by a school
corporation that is attributable to the territory of the school corporation
that is located within the boundaries of a county listed in subsection
(a)(1) to each charter school, excluding virtual charter schools or adult
high schools, that a student who resides within the attendance area of
the school corporation attends if the charter school elects to participate
in the referendum under section 8(h) of this chapter.
    (c) The department shall provide the county auditor with data and
information necessary for the county auditor to determine:
      (1) which charter schools are eligible to receive a distribution
      under this section; and
      (2) the number of students who:
HEA 1266 — CC 1
                                   24
        (A) reside within the attendance area of the school corporation
        who are included in the ADM for each charter school,
        excluding virtual charter schools or adult high schools,
        described in subdivision (1); and
        (B) receive not more than fifty percent (50%) virtual
        instruction.
   (d) The following schools are not eligible to receive a distribution
under this section:
     (1) A virtual charter school.
     (2) An adult high school.
   (e) For the purposes of the calculations made in this subsection,
each eligible school that has entered into an agreement with a school
corporation to participate as a participating innovation network charter
school under IC 20-25.7-5 is considered to have an ADM that is
separate from the school corporation. The amount that the county
auditor shall distribute to a charter school, excluding virtual charter
schools or adult high schools, under this section is the amount
determined in the last STEP of the following STEPS:
     STEP ONE: Determine, for each charter school, excluding virtual
     charter schools or adult high schools, that is eligible to receive a
     distribution under this section, the number of students who:
        (A) reside within the attendance area of the school
        corporation;
        (B) who are currently included in the ADM of the charter
        school; and
        (C) receive not more than fifty percent (50%) virtual
        instruction.
     STEP TWO: Determine the sum of:
        (A) the current ADM count for the school corporation; plus
        (B) the total number of all students who:
           (i) reside within the attendance area of the school
           corporation;
           (ii) who are currently included in the ADM of a charter
           school, excluding virtual charter schools or adult high
           schools; and
           (iii) receive not more than fifty percent (50%) virtual
           instruction. excluding virtual charter schools or adult high
           schools.
     STEP THREE: Determine the result of:
        (A) the STEP ONE amount; divided by
        (B) the STEP TWO amount.
     STEP FOUR: Determine the result of:
HEA 1266 — CC 1
                                    25
          (A) the sum of:
             (i) the STEP THREE amount; plus
             (ii) any amount withheld in the previous year under
             subsection (i); multiplied by
          (B) the amount collected by the county auditor during the most
          recent installment period that is attributable to the territory of
          the school corporation that is located within the boundaries of
          a county listed in subsection (a).
   (f) A charter school is not eligible for a distribution under this
section from property tax revenue collected from a particular
referendum levy if the charter school does not have a certified fall
ADM count in the calendar year immediately preceding the calendar
year in which the public question for the referendum appears on the
ballot.
   (g) Not later than August 15, 2025, and not later than August 15 of
each calendar year thereafter, the department shall provide to each
school corporation and eligible charter school an estimate of the
amount of property tax levy revenue the school corporation and charter
school are expected to receive under this section in the subsequent
calendar year based on the most recent fall ADM count.
   (h) This subsection applies beginning with distributions of property
tax revenue under this section in 2026 and thereafter. In order to
receive a distribution under this section, the governing body of a
charter school shall, not later than October 15, 2025, and not later than
October 15 of each calendar year thereafter, adopt a budget for the
current school year. Not later than ten (10) days before its adoption, the
budget must be fixed and presented to the charter board in a public
meeting in the county in which the charter school is incorporated. Not
later than November 1, 2025, and not later than November 1 of each
calendar year thereafter, the governing body of the charter school shall
submit:
      (1) the budget that is adopted under this subsection;
      (2) the dates on which each requirement under this subsection
      were met; and
      (3) a statement from the governing body of the charter school
      attesting that the dates provided in subdivision (2) are true and
      accurate and that the budget was properly adopted under this
      subsection;
to the charter authorizer for review and to the department of local
government finance to be posted publicly on the computer gateway
under IC 6-1.1-17-3.
   (i) If a charter school does not satisfy the requirements of subsection
HEA 1266 — CC 1
                                   26
(h) to receive distributions under this section during a calendar year, as
determined by the department of local government finance, the charter
school may not receive a distribution of property tax revenue in that
calendar year and the county auditor shall withhold the charter school's
distribution amount. The department of local government finance's
determination of compliance consists only of a confirmation that the
adopted budget and attestation statement are submitted not later than
the applicable date under subsection (h). Any distribution amount
withheld under this subsection shall be:
      (1) added to the property tax revenue collections as described in
      STEP TWO of subsection (e); and
      (2) distributed among the school corporation and remaining
      charter schools according to subsection (e);
in the calendar year that immediately follows the calendar year in
which the distribution amount was withheld.
   SECTION 23. IC 20-46-9-22, AS AMENDED BY P.L.68-2025,
SECTION 232, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 22. (a) This section:
      (1) applies to revenue received from a resolution that is approved
      by the governing body to impose a referendum levy under section
      6 or 7 of this chapter after May 10, 2023, for a school corporation
      located in:
          (A) Lake County;
          (B) Marion County;
          (C) St. Joseph County; or
          (D) Vanderburgh County;
      through the full term of the referendum levy; and
      (2) does not apply to revenue received from a referendum levy if:
          (A) the governing body of the school corporation approves the
          referendum levy in a resolution adopted under section 6 or 7
          of this chapter; and
          (B) the referendum levy is imposed for the first time with
          property taxes first due and payable in a calendar year
          beginning after December 31, 2027.
   (b) The county auditor shall distribute an amount under subsection
(d) to each charter school, excluding virtual charter schools or adult
high schools, that a student who resides within the attendance area of
the school corporation attends if the charter school, excluding virtual
charter schools or adult high schools, elects to participate in the
referendum under section 6(i) of this chapter. The department shall
provide the county auditor with data and information necessary for the
county auditor to determine:
HEA 1266 — CC 1
                                   27
     (1) which charter schools, excluding virtual charter schools or
     adult high schools, are eligible to receive a distribution under this
     section; and
     (2) the number of all students who reside within the attendance
     area of the school corporation who are included in the ADM for
     each charter school, excluding virtual charter schools or adult
     high schools, described in subdivision (1).
   (c) The following schools are not eligible to receive a distribution
under this section:
     (1) A virtual charter school.
     (2) An adult high school.
   (d) For the purposes of the calculations made in this subsection,
each eligible school that has entered into an agreement with a school
corporation to participate as a participating innovation network charter
school under IC 20-25.7-5 is considered to have an ADM that is
separate from the school corporation. The amount that the county
auditor shall distribute to a charter school, excluding virtual charter
schools or adult high schools, under this section is the amount
determined in the last STEP of the following STEPS:
     STEP ONE: Determine, for each charter school, excluding virtual
     charter schools or adult high schools, that is eligible to receive a
     distribution under this section, the number of students who:
        (A) reside within the attendance area of the school
        corporation; who
        (B) are currently included in the ADM of the charter school;
        and
        (C) receive not more than fifty percent (50%) virtual
        instruction.
     STEP TWO: Determine the sum of:
        (A) the current ADM count for the school corporation; plus
        (B) the total number of students who:
           (i) reside within the attendance area of the school
           corporation; who:
           (ii) are currently included in the ADM of a charter school,
           excluding virtual charter schools or adult high schools; and
           (iii) receive not more than fifty percent (50%) virtual
           instruction.
     STEP THREE: Determine the result of:
        (A) the STEP ONE amount; divided by
        (B) the STEP TWO amount.
     STEP FOUR: Determine the result of:
        (A) the STEP THREE amount; multiplied by
HEA 1266 — CC 1
                                   28
          (B) the amount collected by the county auditor during the most
          recent installment period.
   (e) If a charter school receives a distribution under this section, the
distribution may be used only for the purposes described in
IC 20-40-20-6(a).
   SECTION 24. IC 20-51-4-5.5, AS ADDED BY P.L.232-2025,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5.5. (a) A parent of an eligible choice scholarship
student or an eligible school on behalf of a parent of an eligible choice
scholarship student may petition the department to reconsider the
eligibility of a choice scholarship student payment of a choice
scholarship for a student enrolled in the eligible school if the parent
has reason to believe that the student was determined ineligible due to
enrollment membership data inaccuracies reported by a school.
Petitions must be received by the department not later than thirty
(30) days after the date of notification of payment based on the
official fall and spring ADM count dates.
   (b) If the department determines that a student described in
subsection (a) is eligible for a choice scholarship under this chapter, the
department may adjust the enrollment membership count of choice
scholarship students for the applicable eligible school.
   (c) If the department adjusts a count used for a distribution under
this chapter, the department shall adjust subsequent distributions to the
eligible school that is affected by the adjusted count, on the schedule
determined by the department, to reflect the differences between the
distribution that the eligible school received and the distribution that
the eligible school would have received if the adjusted count had been
used.
   SECTION 25. IC 20-51.4-4.5-6.5, AS ADDED BY P.L.127-2024,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6.5. (a) A parent of a career scholarship student
or an emancipated career scholarship student may use a CSA annual
grant amount received under this chapter for costs related to obtaining
a driver's license if the following conditions are met:
      (1) The amount used for the costs does not exceed one thousand
      dollars ($1,000).
      (2) The parent or emancipated CSA student demonstrates proof
      of hardship, as determined by the department.
      (3) A driver's license is a prerequisite for being able to perform
      the regular functions of the sequence, course, apprenticeship, or
      program of study, as determined by the department.
      (4) Any other criteria that the department considers relevant are
HEA 1266 — CC 1
                                  29
      satisfied.
    (b) A parent of a career scholarship student or an emancipated
career scholarship student may use a CSA annual grant amount
received under this chapter for costs related to transportation if the
following conditions are met:
      (1) The amount used for the costs from the CSA annual grant
      amount does not exceed the following:
         (A) A matching amount paid by a CSA participating entity for
         the transportation costs of the career scholarship student.
         (B) a total amount of six hundred twenty-five dollars ($625).
      (2) The parent or emancipated CSA student demonstrates proof
      of hardship, as determined by the department.
      (3) Any other criteria that the department considers relevant are
      satisfied.
    (c) A CSA annual grant amount received under this chapter may not
be used for the purchase or lease of a motor vehicle (as defined in
IC 4-4-32.2-6).
    SECTION 26. IC 20-53 IS ADDED TO THE INDIANA CODE AS
A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
    ARTICLE 53. STATE PARTICIPATION IN FEDERAL TAX
CREDIT SCHOLARSHIP PROGRAM
    Chapter 1. State List of Scholarship Granting Organizations
    Sec. 1. The department is authorized to and shall as early as
practicable elect to participate as a covered state in the federal tax
credit scholarship program for elementary and secondary
education under Section 25F of the Internal Revenue Code.
    Sec. 2. (a) The department shall identify qualified scholarship
granting organizations located in Indiana that meet the
requirements set forth in section 4 of this chapter.
    (b) The department shall accept applications throughout the
year from scholarship granting organizations wishing to be
identified as a qualified scholarship granting organization under
subsection (a).
    Sec. 3. (a) Not later than the first day of January each year, the
department shall submit to the Secretary of the Treasury of the
United States the list of qualified scholarship granting
organizations identified under section 2(a) of this chapter that are
located in Indiana and publish the list submitted under this
subsection on its website.
    (b) The department shall on each list submitted under
subsection (a) certify its authority to do so as required under
HEA 1266 — CC 1
                                 30
Section 25F(g)(2) of the Internal Revenue Code.
   Sec. 4. (a) A scholarship granting organization shall be included
on the list of qualified scholarship granting organizations
submitted by the department to the Secretary of the Treasury of
the United States under this chapter, if the organization:
     (1) is a nonprofit organization with the primary purpose of
     providing scholarships to students; and
     (2) meets the requirements described in Section 25F(c)(5) of
     the Internal Revenue Code.
   (b) A scholarship granting organization (as defined in
IC 6-3.1-30.5-3(1)) for purposes of the tax credit under
IC 6-3.1-30.5 is eligible to be included on the list of qualified
scholarship granting organizations under this chapter, if the
scholarship granting organization meets the requirements under
subsection (a). Each year the department shall provide to the
department of state revenue a list of the scholarship granting
organizations (as defined in IC 6-3.1-30.5-3(1)) that are also
included on the list of qualified scholarship granting organizations
submitted by the department to the Secretary of the Treasury of
the United States under this chapter.
   SECTION 27. IC 21-18-21 IS REPEALED [EFFECTIVE JULY 1,
2026]. (Postsecondary Career and Technical Education).
   SECTION 28. IC 21-18.5-5-2, AS AMENDED BY P.L.43-2021,
SECTION 141, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 2. (a) The board for proprietary
education consists of the following seven (7) members:
     (1) The secretary of education or the secretary's designee.
     (2) The executive officer of the commission for higher education
     or the executive officer's designee.
     (3) Five (5) members who are members of the public at large
     appointed by the governor.
   (b) The members appointed by the governor under subsection (a)
serve for a term of four (4) years.
   (c) Not more than three (3) of the members appointed by the
governor may be members of the same political party.
   (d) Of the five (5) members appointed by the governor:
     (1) one (1) must have been engaged for a period of at least five
     (5) years immediately preceding appointment in an executive or
     a managerial position in a postsecondary proprietary educational
     institution subject to IC 21-18.5-6;
     (2) one (1) must have been engaged in administering or managing
     an industrial employee training program for a period of at least
HEA 1266 — CC 1
                                   31
      five (5) years immediately preceding appointment; and
      (3) three (3) must be representatives of the public at large who are
      not representatives of the types of postsecondary credit bearing
      proprietary educational institutions to be authorized.
For purposes of subdivision (3), an elected or appointed state or local
official or a member of a private or public school may not be appointed
as a representative of the public at large.
    (e) (d) An appointment to fill a vacancy occurring on the board for
proprietary education is for the unexpired term.
    SECTION 29. IC 21-41-18 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]:
    Chapter 18. Graduate Programs in Mental or Behavioral
Health
    Sec. 1. This chapter does not apply to Ivy Tech Community
College or Vincennes University.
    Sec. 2. Each state educational institution that offers a two (2)
year graduate degree program in mental or behavioral health shall
evaluate the graduate degree program to determine the feasibility,
if any, of providing the graduate degree program in a specifically
structured manner to allow a full-time student to complete the
graduate degree within:
      (1) one (1) year; or
      (2) five (5) years if the graduate degree program is combined
      with a baccalaureate degree program.
    SECTION 30. IC 22-4.1-4-16 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 16. (a) As used in this section,
"high skill, high wage, or in demand industry sectors or
occupations" means sectors or occupations identified by the state
pursuant to the Carl D. Perkins Career and Technical Education
Act of 2006 (20 U.S.C. 2301 et seq.) and applicable state and local
workforce development processes.
    (b) The governor and the department, in consultation with the
commission for higher education (established by IC 21-18-2-1)
shall do the following:
      (1) Establish a process to identify eligible workforce training
      programs that prepare students for high skill, high wage, or
      in demand industry sectors or occupations for workforce Pell
      grants.
      (2) Establish a process for institutions and programs to:
          (A) apply for recognition as an eligible workforce training
HEA 1266 — CC 1
                               32
        program;
        (B) be approved for workforce Pell grants; and
        (C) appeal denials of workforce Pell grants.
     (3) Coordinate certification and oversight of eligible
     workforce training programs with:
        (A) workforce focused agencies;
        (B) workforce related programs; and
        (C) state and federal programs.
     (4) Require eligible workforce training programs to provide
     data required under applicable federal workforce Pell grant
     regulations, including:
        (A) program completion rates;
        (B) job placement rates; and
        (C) graduate earnings.
   (c) The department shall ensure that the implementation of this
section does not impose requirements more restrictive than, or
inconsistent with, any applicable federal rules governing the
workforce Pell grant program.
   SECTION 31. [EFFECTIVE UPON PASSAGE] Notwithstanding
the June 29, 2026, effective date contained in P.L.213-2025,
SECTION 199, the revisor of statutes shall publish IC 20-51-1-4.3,
as amended by P.L.213-2025, SECTION 199, effective May 1, 2026.
   SECTION 32. An emergency is declared for this act.
HEA 1266 — CC 1
Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
HEA 1266 — CC 1