*EH1326.1*
April 4, 2025
ENGROSSED
HOUSE BILL No. 1326
_____
DIGEST OF HB 1326 (Updated April 2, 2025 3:45 pm - DI 152)
Citations Affected: IC 20-51; IC 21-12; IC 21-13; IC 21-18.
Synopsis: Scholarships. Provides that a scholarship granting
organization must include certain information in its annual public
report to the department of education. Provides that applicants enrolled
in a transition to teaching program after June 30, 2024, may qualify for
certain scholarships if the applicant is a member of a household with
an annual income of not more than 400% of the amount required for
the applicant to qualify for the federal free or reduced price lunch
program. (Currently, the annual income threshold is $100,000 or less.)
Permits the commission for higher education to use the remaining
balance allocated to certain teaching scholarships or in certain teaching
scholarship funds to fund additional specified teaching scholarships.
Effective: July 1, 2025.
Heine, Teshka, Snow, Miller K
(SENATE SPONSORS — BROWN L, JOHNSON T)
January 13, 2025, read first time and referred to Committee on Education.
January 29, 2025, reported — Do Pass. Referred to Committee on Ways and Means
pursuant to Rule 126.3.
February 13, 2025, reported — Do Pass.
February 17, 2025, read second time, ordered engrossed. Engrossed.
February 18, 2025, read third time, passed. Yeas 65, nays 28.
SENATE ACTION
March 3, 2025, read first time and referred to Committee on Education and Career
Development.
April 3, 2025, amended, reported favorably — Do Pass; reassigned to Committee on
Appropriations.
EH 1326—LS 7158/DI 152 April 4, 2025
First Regular Session of the 124th General Assembly (2025)
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.
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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 2024 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1326
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 20-51-3-6, AS AMENDED BY P.L.167-2018,
2 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 6. (a) A scholarship granting organization
4 certified under this chapter must publicly report to the department by
5 December 1 of each year the following information:
6 (1) Regarding the organization's scholarships awarded in the
7 previous school year:
8 (1) (A) the name and address of the scholarship granting
9 organization;
10 (2) (B) the total number and total dollar amount of
11 contributions received during the previous school year; and
12 (3) (C) the:
13 (A) (i) total number and total dollar amount of scholarships
14 awarded during the previous school year; and
15 (B) (ii) total number and total dollar amount of school
16 scholarships awarded during the previous school year;
17 disaggregated by school.
EH 1326—LS 7158/DI 152 2
1 (2) The total dollar amount remaining and available to be
2 used by the organization for scholarships.
3 The report must be certified under penalties of perjury by the chief
4 executive officer of the scholarship granting organization.
5 (b) A scholarship granting organization certified under this chapter
6 shall contract with an independent certified public accountant for an
7 annual financial audit of the scholarship granting organization. The
8 scholarship granting organization must provide a copy of the annual
9 financial audit to the department and must make the annual financial
10 audit available to a member of the public upon request.
11 SECTION 2. IC 21-12-16-5.5, AS AMENDED BY P.L.44-2024,
12 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2025]: Sec. 5.5. (a) An applicant who is enrolled in a
14 transition to teaching program may qualify for a scholarship under
15 section 8.5 of this chapter.
16 (b) This subsection applies only to an applicant enrolled in a
17 transition to teaching program after June 30, 2023, and before July 1,
18 2024. To qualify for a scholarship, an applicant must:
19 (1) apply for a scholarship on a form supplied by the commission;
20 (2) possess a baccalaureate degree from an accredited
21 postsecondary four (4) year institution;
22 (3) have enrolled in a transition to teaching program described in
23 IC 20-28-4;
24 (4) agree in writing to:
25 (A) complete a transition to teaching program described in
26 IC 20-28-4 and obtain an initial practitioner license under
27 IC 20-28; and
28 (B) teach for at least five (5) consecutive years in a public
29 school or an eligible school (as defined in IC 20-51-1-4.7) in
30 Indiana after obtaining the initial practitioner license under
31 IC 20-28-4-6; and
32 (5) meet any other criteria established by the commission.
33 (c) This subsection applies only to an applicant that initially enrolls
34 in a transition to teaching program after June 30, 2024. To qualify for
35 a scholarship, an applicant must:
36 (1) apply for a scholarship on a form supplied by the commission;
37 (2) possess a baccalaureate degree from an accredited
38 postsecondary four (4) year institution;
39 (3) have enrolled in a transition to teaching program described in
40 IC 20-28-4;
41 (4) agree in writing to:
42 (A) complete a transition to teaching program described in
EH 1326—LS 7158/DI 152 3
1 IC 20-28-4 and obtain an initial practitioner license under
2 IC 20-28; and
3 (B) teach for at least five (5) consecutive years in a public
4 school or an eligible school (as defined in IC 20-51-1-4.7) in
5 Indiana after obtaining the initial practitioner license under
6 IC 20-28-4-6;
7 (5) except as otherwise provided in section 8.5(c) of this chapter,
8 be a member of a household with an annual income of one
9 hundred thousand dollars ($100,000) or less; not more than four
10 hundred percent (400%) of the amount required for the
11 applicant to qualify for the federal free or reduced price lunch
12 program; and
13 (6) meet any other criteria established by the commission.
14 SECTION 3. IC 21-12-16-8.5, AS AMENDED BY P.L.44-2024,
15 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2025]: Sec. 8.5. (a) Subject to subsection (b), if an applicant
17 meets the requirements under section 5.5 of this chapter, the
18 commission may award a one (1) time nonrenewable scholarship to the
19 applicant in an amount of up to ten thousand dollars ($10,000) for
20 transition to teaching program and initial practitioner licensure costs
21 under IC 20-28-4.
22 (b) The total annual amount of scholarships awarded by the
23 commission under this section may not exceed one million dollars
24 ($1,000,000).
25 (c) Notwithstanding subsection (b), any balance in the next
26 generation Hoosier educators scholarship fund established by section
27 3 of this chapter remaining after the commission has awarded next
28 generation Hoosier educators scholarships for a fiscal year may be used
29 to fund additional transition to teaching scholarships as described in
30 section 5.5 of this chapter. The commission shall give priority for
31 scholarships awarded under this subsection to an applicant who is a
32 member of a household with an annual income of one hundred
33 thousand dollars ($100,000) or less in accordance with not more than
34 the amount described in section 5.5(c)(5) of this chapter. However,
35 if there is a remaining balance in the next generation Hoosier educators
36 scholarship fund established by section 3 of this chapter after awarding
37 scholarships to individuals who meet the income requirement described
38 in section 5.5(c)(5) of this chapter, the commission may award
39 transition to teaching scholarships to applicants who are members of
40 a household with an annual income that exceeds one hundred thousand
41 dollars ($100,000). the amount described in section 5.5(c)(5) of this
42 chapter. Any balance in the fund remaining after the commission
EH 1326—LS 7158/DI 152 4
1 has awarded scholarships pursuant to this section may be used by
2 the commission to fund additional teaching scholarships as
3 described in IC 21-18-6-9.
4 SECTION 4. IC 21-13-2-3, AS AMENDED BY P.L.205-2013,
5 SECTION 317, IS AMENDED TO READ AS FOLLOWS
6 [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) Except as provided in
7 subsection (b), money in the fund shall be used to provide annual
8 scholarships to individuals who qualify for a scholarship under section
9 4 of this chapter.
10 (b) Any balance in the fund remaining after the commission has
11 awarded William A. Crawford minority teacher scholarships may
12 be used by the commission to fund additional teaching scholarships
13 as described in IC 21-18-6-9.
14 SECTION 5. IC 21-13-7-5 IS ADDED TO THE INDIANA CODE
15 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
16 1, 2025]: Sec. 5. Any balance in the fund remaining after the
17 commission has awarded scholarships under section 1 of this
18 chapter may be used by the commission to fund additional teaching
19 scholarships as described in IC 21-18-6-9.
20 SECTION 6. IC 21-13-8-5 IS ADDED TO THE INDIANA CODE
21 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
22 1, 2025]: Sec. 5. Any balance in the fund remaining after the
23 commission has awarded Earline S. Rogers student teaching
24 scholarships may be used by the commission to fund additional
25 teaching scholarships as described in IC 21-18-6-9.
26 SECTION 7. IC 21-18-6-9 IS ADDED TO THE INDIANA CODE
27 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
28 1, 2025]: Sec. 9. (a) This section applies to the following
29 scholarships:
30 (1) IC 21-12-16.
31 (2) IC 21-13-2.
32 (3) IC 21-13-7.
33 (4) IC 21-13-8.
34 (b) Any balance in a scholarship fund or allocated to a
35 scholarship identified in subsection (a) remaining after the
36 commission has awarded each scholarship may be used to fund
37 additional teaching scholarships described in subsection (a).
EH 1326—LS 7158/DI 152 5
COMMITTEE REPORT
Mr. Speaker: Your Committee on Education, to which was referred
House Bill 1326, has had the same under consideration and begs leave
to report the same back to the House with the recommendation that said
bill do pass.
(Reference is to HB 1326 as introduced.)
BEHNING
Committee Vote: Yeas 6, Nays 4
_____
COMMITTEE REPORT
Mr. Speaker: Your Committee on Ways and Means, to which was
referred House Bill 1326, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill do pass.
(Reference is to HB 1326 as printed January 29, 2025.)
THOMPSON
Committee Vote: Yeas 15, Nays 8
_____
COMMITTEE REPORT
Mr. President: The Senate Committee on Education and Career
Development, to which was referred House Bill No. 1326, has had the
same under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill be AMENDED as
follows:
Page 1, delete lines 1 through 13, begin a new paragraph and insert:
"SECTION 1. IC 20-51-3-6, AS AMENDED BY P.L.167-2018,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. (a) A scholarship granting organization
certified under this chapter must publicly report to the department by
December 1 of each year the following information:
(1) Regarding the organization's scholarships awarded in the
previous school year:
(1) (A) the name and address of the scholarship granting
organization;
(2) (B) the total number and total dollar amount of
EH 1326—LS 7158/DI 152 6
contributions received during the previous school year; and
(3) (C) the:
(A) (i) total number and total dollar amount of scholarships
awarded during the previous school year; and
(B) (ii) total number and total dollar amount of school
scholarships awarded during the previous school year;
disaggregated by school.
(2) The total dollar amount remaining and available to be
used by the organization for scholarships.
The report must be certified under penalties of perjury by the chief
executive officer of the scholarship granting organization.
(b) A scholarship granting organization certified under this chapter
shall contract with an independent certified public accountant for an
annual financial audit of the scholarship granting organization. The
scholarship granting organization must provide a copy of the annual
financial audit to the department and must make the annual financial
audit available to a member of the public upon request.".
and when so amended that said bill do pass and be reassigned to the
Senate Committee on Appropriations.
(Reference is to HB 1326 as printed February 13, 2025.)
RAATZ, Chairperson
Committee Vote: Yeas 9, Nays 4.
EH 1326—LS 7158/DI 152