*EH1498.1*
March 21, 2025
ENGROSSED
HOUSE BILL No. 1498
_____
DIGEST OF HB 1498 (Updated March 19, 2025 4:03 pm - DI 152)
Citations Affected: IC 20-19; IC 20-31; noncode.
Synopsis: School accountability. Repeals certain provisions regarding
statewide assessment scores and the establishment of categories or
designations of school performance. Requires the state board of
education to establish a new methodology for designating school
performance. Extends the expiration of certain provisions regarding the
posting of school information. Provides that the proposals to align
diploma waiver statutes with new diploma requirements may include
a proposal to eliminate diploma waivers.
Effective: July 1, 2025.
Behning
(SENATE SPONSORS — DEERY, GOODE)
January 21, 2025, read first time and referred to Committee on Education.
January 30, 2025, amended, reported — Do Pass.
February 3, 2025, read second time, ordered engrossed.
February 4, 2025, engrossed. Read third time, passed. Yeas 62, nays 28.
SENATE ACTION
February 19, 2025, read first time and referred to Committee on Education and Career
Development.
March 20, 2025, amended, reported favorably — Do Pass.
EH 1498—LS 7495/DI 152 March 21, 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.
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 2024 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1498
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 20-19-11-4, AS ADDED BY P.L.246-2023,
2 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 4. This chapter expires January 1, 2026. 2027.
4 SECTION 2. IC 20-31-8-1 IS REPEALED [EFFECTIVE JULY 1,
5 2025]. Sec. 1. (a) The performance of a school's students on the
6 statewide assessment program test and other criterion referenced
7 benchmark assessments recommended by the department and approved
8 by the state board are the primary and majority means of assessing a
9 school's improvement. The state board may, and is encouraged to,
10 incorporate social studies and science as indicators for assessing school
11 improvement.
12 (b) The department shall examine and make recommendations to the
13 state board concerning:
14 (1) performance indicators to be used as a secondary means of
15 determining school progress;
16 (2) expected progress levels, continuous improvement measures,
17 distributional performance levels, and absolute performance
EH 1498—LS 7495/DI 152 2
1 levels for schools; and
2 (3) an orderly transition from the performance based accreditation
3 system to the assessment system set forth in this article.
4 (c) The department shall consider methods of measuring
5 improvement and progress used in other states in developing
6 recommendations under this section.
7 (d) The department may consider:
8 (1) the likelihood that a student may fail to meet a postsecondary
9 readiness competency established by the state board under
10 IC 20-32-4-1.5(c) and require a waiver under IC 20-32-4-4.1 or
11 IC 20-32-4-5; and
12 (2) remedial needs of students who are likely to require remedial
13 work while the students attend a postsecondary educational
14 institution or workforce training program;
15 when making recommendations under this section.
16 SECTION 3. IC 20-31-8-2 IS REPEALED [EFFECTIVE JULY 1,
17 2025]. Sec. 2. (a) In addition to scores on the statewide assessment
18 program test and other assessments, the department shall use the
19 performance indicators developed by the state board and the
20 benchmarks and indicators of performance in each school corporation's
21 annual performance report as a secondary means of assessing the
22 performance of each school and school corporation.
23 (b) The department shall assess school performance in the following
24 manner:
25 (1) Compare the academic performance and growth of the
26 individual students in each school and each school corporation
27 with the prior academic performance and growth of the individual
28 students in the school or school corporation and not to the
29 performance of other schools or school corporations.
30 (2) Compare the results for a school by comparing each student's
31 results for each grade with the student's prior year results, with an
32 adjustment for student mobility rate.
33 (3) Compare the results for a school with the state average and the
34 ninety-fifth percentile level for all assessments and performance
35 indicators.
36 SECTION 4. IC 20-31-8-4, AS AMENDED BY P.L.287-2019,
37 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2025]: Sec. 4. (a) The state board shall place each school in
39 a category or designation of school performance once annually based
40 on the department's findings from the assessment of performance and
41 academic growth methodology developed under section 2 11 of this
42 chapter.
EH 1498—LS 7495/DI 152 3
1 (b) The state board may place a school in a category or designation
2 of school performance only if:
3 (1) the department has provided each school the opportunity to
4 review, add to, or supplement the data, and to correct any errors
5 in the data; and
6 (2) the state board's staff has had an opportunity to review and
7 analyze the school corporation, school, and student level data.
8 (c) Based on procedures adopted by the state board, a school
9 corporation or school that focuses primarily on providing an academic
10 program for students with developmental, intellectual, or behavioral
11 challenges may petition the state board for review of the school
12 corporation's or school's category or designation of school performance
13 placement based on objective factors that the school corporation or
14 school considers relevant because the annual assessment data does not
15 accurately reflect, as applicable, school performance, growth, or
16 multiple measures. Objective factors include:
17 (1) significant demographic changes in the student population;
18 (2) errors in data; or
19 (3) other significant issues.
20 After considering the petition for review, the state board may direct the
21 department to revise the category or designation assigned to the school
22 corporation or school, including assigning a "null" or "no letter grade"
23 category or designation to the school corporation or school. The state
24 board may grant the "null" designation for multiple years.
25 (d) The state board may obtain assistance from another entity or,
26 with the approval of the legislative council, the legislative services
27 agency, to ensure the validity and reliability of the performance
28 category or designation placements calculated by the department using
29 the methodology developed under section 2 11 of this chapter. The
30 department shall provide all the data necessary to complete those
31 calculations to the legislative services agency or to an entity designated
32 by the state board.
33 SECTION 5. IC 20-31-8-5.4, AS AMENDED BY P.L.93-2024,
34 SECTION 146, IS AMENDED TO READ AS FOLLOWS
35 [EFFECTIVE JULY 1, 2025]: Sec. 5.4. (a) Not later than November
36 15, 2013, the state board shall establish new categories or designations
37 of school performance under the requirements of this chapter to replace
38 511 IAC 6.2-6. The new standards of assessing school performance:
39 (1) must be based on a measurement of individual student
40 academic performance and growth to proficiency; and
41 (2) may not be based on a measurement of student performance
42 or growth compared with peers.
EH 1498—LS 7495/DI 152 4
1 511 IAC 6.2-6 is void on the effective date of the rules adopted under
2 this section.
3 (b) After July 1, 2013, (a) The state board shall adopt rules under
4 IC 4-22-2 to implement this chapter.
5 (c) (b) Before beginning the any rulemaking process to establish
6 new categories or designations of school improvement, the state board
7 shall report to the general assembly the proposed new categories or
8 designations in an electronic format under IC 5-14-6.
9 SECTION 6. IC 20-31-8-10, AS ADDED BY P.L.269-2019,
10 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2025]: Sec. 10. (a) Except as otherwise provided in this
12 section, if requested by a school, the department may place the school
13 in a "null" or "no letter grade" category for purposes of this chapter for
14 the first three (3) consecutive years of operation of the school.
15 (b) Subject to subsection (c), an innovation network school that
16 reconfigures an existing school must apply to the state board, in a
17 manner prescribed by the state board, to request to receive a "null" or
18 "no letter grade" for the reconfigured school during the school's first
19 three (3) consecutive years of operation by an innovation network team.
20 (c) In order to qualify for a "null" or "no letter grade" under
21 subsection (b), an innovation network school must clearly demonstrate:
22 (1) a significant change in educational philosophy from the
23 existing school and that the reconfiguration of the school is not
24 being made to avoid accountability; or
25 (2) any other item that the state board finds appropriate.
26 The state board shall adopt rules under IC 4-22-2 to establish criteria
27 that the state board may consider in determining whether to grant an
28 innovation network school's request under subsection (b) and this
29 subsection.
30 (d) Subject to subsection (e), if the department used student growth
31 as the state board's exclusive means to determine an:
32 (1) innovation network school's category or designation of school
33 improvement under IC 20-25.7-4-5(d)(3) for the 2018-2019
34 school year; or
35 (2) innovation network charter school's category or designation of
36 school improvement under IC 20-25.7-5-2(d)(3) for the
37 2018-2019 school year;
38 the department shall, beginning with the 2019-2020 school year and
39 unless an innovation network school or innovation network charter
40 school requests otherwise, place the innovation network school or the
41 innovation network charter school, whichever is applicable, in a "null"
42 or "no letter grade" category for purposes of this chapter for not more
EH 1498—LS 7495/DI 152 5
1 than the number of school years determined for the innovation network
2 school or innovation network charter school under subsection (e)
3 consecutively. This subsection expires July 1, 2023.
4 (e) Each innovation network school described in subsection (d)(1)
5 and each innovation network charter school described in subsection
6 (d)(2) may not be placed in a "null" or "no letter grade" category under
7 subsection (d) for more than the number of years that equal the result
8 of:
9 (1) three (3) school years; minus
10 (2) the number of school years that student growth was used as
11 the state board's exclusive means to determine the category or
12 designation of school improvement for the innovation network
13 school or innovation network charter school.
14 This subsection expires July 1, 2023.
15 (f) (d) The department shall post the proficiency and growth scores
16 of an innovation network school, an innovation network charter school,
17 or a school described in subsection (a) on the department's Internet web
18 site website for each year the innovation network school, innovation
19 network charter school, or school receives a "null" or "no letter grade"
20 under this section.
21 SECTION 7. IC 20-31-8-11 IS ADDED TO THE INDIANA CODE
22 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
23 1, 2025]: Sec. 11. (a) Not later than December 31, 2025, the state
24 board shall establish a new methodology for designating school
25 performance under section 3 of this chapter. The methodology
26 developed under this section must do the following:
27 (1) Be based on data available in the department's Internet
28 dashboard established under section 5.5 of this chapter.
29 (2) Include proficiency rates from the determinant evaluation
30 of reading skills approved by the state board for schools that
31 contain grade 3.
32 (3) Include proficiency rates from the statewide summative
33 assessment.
34 (4) Prioritize the attainment of a diploma seal described in
35 511 IAC 6-7.2-8.
36 (5) Consider other factors the state board considers relevant.
37 (b) The performance of a school's students on the statewide
38 assessment program test and other criterion referenced benchmark
39 assessments recommended by the department and approved by the
40 state board are the primary means of assessing an elementary
41 school's improvement.
42 (c) The state board shall adopt rules under IC 4-22-2 to
EH 1498—LS 7495/DI 152 6
1 implement this chapter.
2 (d) 511 IAC 6.2-10 shall become void on the date the rules
3 concerning subsection (a) are adopted by the state board. At that
4 time, the publisher of the Indiana Administrative Code and the
5 Indiana Register shall remove this provision from the Indiana
6 Administrative Code.
7 SECTION 8. IC 20-31-8-11.1 IS ADDED TO THE INDIANA
8 CODE AS A NEW SECTION TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2025]: Sec. 11.1. (a) Not later than December
10 31, 2026, the state board shall place each school in a category,
11 using an "A" through "F" scale, to designate school performance
12 as described in section 3 of this chapter using the methodology
13 developed under section 11 of this chapter.
14 (b) This section expires July 1, 2027.
15 SECTION 9. [EFFECTIVE JULY 1, 2025] (a) The definitions in
16 IC 20 apply throughout this SECTION.
17 (b) Notwithstanding IC 20-31-8, as amended by this act, and 511
18 IAC 6.2-10, the state board shall assign to a school or school
19 corporation a "null" or "no letter grade" for the 2024-2025 school
20 year.
21 (c) Notwithstanding IC 20-31-8, as amended by this act, and 511
22 IAC 6.3-1, the state board shall assign an adult high school a "null"
23 or "no letter grade" category for the 2024-2025 school year.
24 (d) This SECTION expires January 1, 2026.
25 SECTION 10. P.L.150-2024, SECTION 80, IS AMENDED TO
26 READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: SECTION 80. (a)
27 The definitions in IC 20 apply throughout this SECTION.
28 (b) Not later than November 1, 2026, the department shall develop
29 proposals to align diploma waiver statutes with new diploma
30 requirements established by the state board under IC 20-19-2-21, as
31 amended by this act. The proposals may include a proposal to
32 eliminate diploma waivers.
33 (c) This SECTION expires July 1, 2027.
EH 1498—LS 7495/DI 152 7
COMMITTEE REPORT
Mr. Speaker: Your Committee on Education, to which was referred
House Bill 1498, has had the same under consideration and begs leave
to report the same back to the House with the recommendation that said
bill be amended as follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 20-19-11-4, AS ADDED BY P.L.246-2023,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. This chapter expires January 1, 2026. 2027.".
Page 5, between lines 34 and 35, begin a new paragraph and insert:
"(b) The performance of a school's students on the statewide
assessment program test and other criterion referenced benchmark
assessments recommended by the department and approved by the
state board are the primary means of assessing an elementary
school's improvement.".
Page 5, line 35, delete "(b)" and insert "(c)".
Page 5, line 37, delete "(c)" and insert "(d)".
Page 6, after line 17, begin a new paragraph and insert:
"SECTION 10. P.L.150-2024, SECTION 80, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: SECTION 80. (a)
The definitions in IC 20 apply throughout this SECTION.
(b) Not later than November 1, 2026, the department shall develop
proposals to align diploma waiver statutes with new diploma
requirements established by the state board under IC 20-19-2-21, as
amended by this act. The proposals may include a proposal to
eliminate diploma waivers.
(c) This SECTION expires July 1, 2027.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1498 as introduced.)
BEHNING
Committee Vote: yeas 11, nays 0.
EH 1498—LS 7495/DI 152 8
COMMITTEE REPORT
Mr. President: The Senate Committee on Education and Career
Development, to which was referred House Bill No. 1498, 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 3, delete lines 33 through 42, begin a new paragraph and
insert:
"SECTION 5. IC 20-31-8-5.4, AS AMENDED BY P.L.93-2024,
SECTION 146, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 5.4. (a) Not later than November
15, 2013, the state board shall establish new categories or designations
of school performance under the requirements of this chapter to replace
511 IAC 6.2-6. The new standards of assessing school performance:
(1) must be based on a measurement of individual student
academic performance and growth to proficiency; and
(2) may not be based on a measurement of student performance
or growth compared with peers.
511 IAC 6.2-6 is void on the effective date of the rules adopted under
this section.
(b) After July 1, 2013, (a) The state board shall adopt rules under
IC 4-22-2 to implement this chapter.
(c) (b) Before beginning the any rulemaking process to establish
new categories or designations of school improvement, the state board
shall report to the general assembly the proposed new categories or
designations in an electronic format under IC 5-14-6.".
Page 4, delete lines 1 through 7.
Page 5, delete lines 35 through 36.
Page 5, line 37, delete "(6)" and insert "(5)".
and when so amended that said bill do pass.
(Reference is to HB 1498 as printed January 30, 2025.)
RAATZ, Chairperson
Committee Vote: Yeas 13, Nays 0.
EH 1498—LS 7495/DI 152