Indiana Code Title 20. Education § 20-31-8-3

Sec. 3. (a) The state board shall establish a number of categories, using an “A” through “F” grading scale, to designate school performance.  In addition, the state board may assign each domain, indicator, or measure used to assess school performance a separate and distinct category or designation.

(b) The state board, in consultation with the department, shall define “low population schools” and shall determine the criteria for placing low population schools in categories established under subsection (a).  In setting the definition and criteria for low population schools, the state board shall not penalize schools based on population.  The state board's definition and criteria may include the placement of a school that fits the state board's definition in a “null” or “no letter grade” category.

(c) In developing metrics for the categories established under subsection (a), the state board, in consultation with the department, to the extent not inconsistent with federal law, shall consider the severity of tested students' disabilities when using statewide assessment scores as a means of assessing school performance.

(d) In developing metrics for the categories established under subsection (a), the state board shall consider the mobility of high school students who are credit deficient and whether any high school should be rewarded for enrolling credit deficient students or penalized for transferring out credit deficient students.