Ind. Code ch. 20-51.4-5

in effect

Ind. Code § 20-51.4-5-1 Intent

Sec. 1. It is the intent of the general assembly to honor the autonomy of nonpublic schools that choose and are authorized to become ESA participating entities under this article. A nonpublic eligible school is not an agent of the state or federal government, and therefore: (1) the state board, department, or any other state agency may not in any way regulate the educational program of a nonpublic school that accepts money from an ESA account under this article, including the regulation of curriculum content, religious instruction or activities, classroom teaching, teacher and staff hiring requirements, and other activities carried out by the nonpublic school; (2) the creation of the ESA program does not expand the regulatory authority of the state or the state's officers to impose additional regulation of nonpublic schools beyond those necessary to enforce the requirements of the ESA program; and (3) an accredited nonpublic school that is an ESA participating entity may provide for the educational needs of students without governmental control. As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.63; P.L.213-2025, SEC.230.

Ind. Code § 20-51.4-5-2 Application process for ESA participating entities; requirements

Sec. 2. (a) The following individuals or entities may become an ESA participating entity by submitting an application to the department in a manner prescribed by the department: (1) A qualified school. (2) An individual who or tutoring agency that provides private tutoring. (3) An individual who or entity that provides services to a student with a disability in accordance with an individualized education program developed under IC 20-35 or a service plan developed under 511 IAC 7-34 or generally accepted standards of care prescribed by the eligible student's treating physician. (4) Subject to section 7 of this chapter, an individual who or entity that offers a course or program to an eligible student. (5) A licensed occupational therapist. (6) Entities that provide assessments. (b) The department shall approve an application submitted under subsection (a) if the individual or entity meets the criteria to serve as an ESA participating entity. (c) If it is reasonably expected by the department that an ESA participating entity will receive, from payments made under the ESA program, more than one hundred thousand dollars ($100,000) during a particular school year, the ESA participating entity shall, on or before a date prescribed by the department provide the department evidence, in a manner prescribed by the department, indicating that the ESA participating entity has unencumbered assets sufficient to pay the department an amount equal to the amount expected to be paid to the ESA participating entity under the ESA program during the particular school year. (d) Each ESA participating entity that accepts payments made from an ESA account under this article shall provide a receipt to the parent of an eligible student or to the emancipated eligible student for each payment made. As added by P.L.165-2021, SEC.180. Amended by P.L.132-2022, SEC.8; P.L.202-2023, SEC.64; P.L.127-2024, SEC.8; P.L.199-2025, SEC.5; P.L.213-2025, SEC.231; P.L.23-2026, SEC.218.

Ind. Code § 20-51.4-5-3 Statewide summative assessment

Sec. 3. (a) Each qualified school that is an ESA participating entity that accepts payments for tuition and fees made from an ESA account under the ESA program shall administer to its eligible students, for the applicable grade levels as provided under IC 20-32-5.1, the statewide summative assessment unless otherwise prescribed by the eligible student's: (1) individualized education program; (2) service plan developed under 511 IAC 7-34; (3) choice special education plan developed under 511 IAC 7-49; or (4) plan developed under Section 504 of the federal Rehabilitation Act of 1973, 29 U.S.C. 794. (b) Upon receipt of the statewide summative assessment test results, the department shall, subject to the federal Family Educational Rights and Privacy Act (20 U.S.C. 1232g) and any regulations adopted under that act: (1) aggregate the statewide summative assessment test results according to the grade level, gender, race, and family income level of all eligible students; and (2) make the results determined under subdivision (1) available on the department's website. As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.65; P.L.150-2024, SEC.70.

Ind. Code § 20-51.4-5-4 Revocation of ESA participating entity's status; notice

Sec. 4. (a) The department may refuse to allow an ESA participating entity to continue participation in the ESA program and revoke the ESA participating entity's status as an ESA participating entity if the department determines that the ESA participating entity accepts payments made from an ESA account under this article and: (1) has failed to provide any educational service required by state or federal law to an eligible student receiving instruction from the ESA participating entity; (2) has routinely failed to meet the requirements of an ESA participating entity under the ESA program; or (3) violates section 7 of this chapter. (b) If the department revokes an ESA participating entity's status as an ESA participating entity in the ESA program, the department shall provide notice of the revocation within thirty (30) days of the revocation to each parent of an eligible student and to each emancipated eligible student receiving instruction from the ESA participating entity who has paid the ESA participating entity from the eligible student's ESA account. (c) The department may permit a former ESA participating entity described in subsection (a) to reapply with the department for authorization to be an ESA participating entity on a date established by the department, which may not be earlier than one (1) year after the date on which the former ESA participating entity's status as an ESA participating entity was revoked under subsection (a). The department may establish reasonable criteria or requirements that the former ESA participating entity must meet before being reapproved by the department as an ESA participating entity. As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.66; P.L.199-2025, SEC.6; P.L.213-2025, SEC.232; P.L.23-2026, SEC.219.

Ind. Code § 20-51.4-5-5 ESA participating entities; charges and receipts

Sec. 5. An approved ESA participating entity: (1) may not charge an eligible student participating in the ESA program an amount greater than a similarly situated student who is receiving the same or similar services; and (2) shall provide a receipt to a parent of an eligible student or an emancipated eligible student for each ESA qualified expense charged for education or related services provided to the eligible student. As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.67.

Ind. Code § 20-51.4-5-6 Internet list of ESA participating entities

Sec. 6. The department shall annually make available on the department's website a list of ESA participating entities. As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.68; P.L.213-2025, SEC.233.

Ind. Code § 20-51.4-5-7 Prohibited ESA reimbursements

Sec. 7. A parent of an eligible student who: (1) is an ESA participating entity described in section 2(a)(4) of this chapter; and (2) teaches a course or program only to an eligible student who is the parent's child and does not teach a course or program to any other eligible student; may not submit a claim for reimbursement of an ESA qualified expense of tuition and fees to teach the eligible student who is the parent's child. As added by P.L.199-2025, SEC.7.

Ind. Code § 20-51.4-5-8 Revocation of ESA participating entity's status; account termination; repayment; civil penalty

Sec. 8. If the department revokes the ESA participating entity's status under section 4(a) of this chapter, the: (1) department may: (A) terminate the ESA participating entity's account; and (B) require the ESA participating entity to repay any improperly received funds under this article to the ESA program; and (2) attorney general may petition a court with jurisdiction to impose a civil penalty against the ESA participating entity in an amount that does not exceed five thousand dollars ($5,000). As added by P.L.199-2025, SEC.8. Amended by P.L.23-2026, SEC.220.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/20Fetched: 10/17/2026