Sec. 3. (a) As used in this section, “achievement test” means a:
        (1) test required by the ISTEP program; or
        (2) Core 40 end of course assessment for the following:
            (A) Algebra I.
            (B) English 10.
            (C) Biology I.
    (b) As used in this section, “graduation rate” means the percentage graduation rate for a high school in a school corporation as determined under IC 20-26-13-10 but adjusted to reflect the pupils who meet the requirements of graduation under subsection (d).
    (c) As used in this section, “test” means either:
        (1) a test required by the ISTEP program; or
        (2) a Core 40 end of course assessment;
in the school year ending in the immediately preceding state fiscal year or, for purposes of a school year to school year comparison, in the school year immediately preceding that school year.
    (d) A pupil meets the requirements of graduation for purposes of this section if the pupil successfully completed:
        (1) a sufficient number of academic credits, or the equivalent of academic credits; and
        (2) the graduation examination required under IC 20-32-3 through IC 20-32-6;
that resulted in the awarding of a high school diploma or an academic honors diploma to the pupil for the school year ending in the immediately preceding state fiscal year.
    (e) Determinations for a school for a state fiscal year must be made using:
        (1) the count of tests passed compared to the count of tests taken throughout the school;
        (2) the graduation rate in the high school; and
        (3) the count of pupils graduating in the high school.
    (f) In determining grants under this section, a school corporation may qualify for the following each year:
        (1) One (1) grant under subsection (h), (i), or (j).
        (2) One (1) grant under subsection (k), (l), or (m).
    (g) The sum of the grant amounts determined for a school corporation under this section constitutes an annual performance grant that is in addition to state tuition support. The annual performance grant for a state fiscal year shall be distributed to the

school corporation before December 5 of that state fiscal year. The performance grant received by a school corporation may be used only to pay cash awards to teachers who are rated as effective or as highly effective.
    (h) A school qualifies for a grant under this subsection if the school has more than seventy-two and five-tenths percent (72.5%) but less than ninety percent (90%) of the tests taken in the school year ending in the immediately preceding state fiscal year that receive passing scores. The grant amount for the state fiscal year is:
        (1) the count of the school’s passing scores on tests in the school year ending in the immediately preceding state fiscal year; multiplied by
        (2) twenty-three dollars and fifty cents ($23.50).
    (i) A school qualifies for a grant under this subsection if the school has at least ninety percent (90%) of the tests taken in the school year ending in the immediately preceding state fiscal year that receive passing scores. The grant amount for the state fiscal year is:
        (1) the count of the school’s passing scores on tests in the school year ending in the immediately preceding state fiscal year; multiplied by
        (2) forty-seven dollars ($47).
    (j) This subsection does not apply to a school corporation in its first year of operation. A school qualifies for a grant under this subsection if the school’s school year over school year percentage growth rate of achievement tests receiving passing scores was at least five percent (5%), comparing the school year ending in the immediately preceding state fiscal year to the school year immediately preceding that school year. The grant amount for the state fiscal year is:
        (1) the count of the school corporation’s pupils who had a passing score on their achievement test in the school year ending in the immediately preceding state fiscal year; multiplied by
        (2) forty-seven dollars ($47).
    (k) A school qualifies for a grant under this subsection if the school had a graduation rate of ninety percent (90%) or more for the school year ending in the immediately preceding state fiscal year. The grant amount for the state fiscal year is:
        (1) the count of the school corporation’s pupils who met the requirements for graduation for the school year ending in the immediately preceding state fiscal year; multiplied by
        (2) one hundred seventy-six dollars ($176).
    (l) A school qualifies for a grant under this subsection if the school had a graduation rate greater than seventy-five percent (75%) but less than ninety percent (90%) for the school year ending in the immediately preceding state fiscal year. The grant amount for the state fiscal year is:
        (1) the count of the school corporation’s pupils who met the requirements for graduation for the school year ending in the immediately preceding state fiscal year; multiplied by

        (2) eighty-eight dollars ($88).
    (m) This subsection does not apply to a school in its first year of operation. A school qualifies for a grant under this subsection if the school’s school year over school year percentage growth in its graduation rate is at least five percent (5%), comparing the graduation rate for the school year ending in the immediately preceding state fiscal year to the graduation rate for the school year immediately preceding that school year. The grant amount for the state fiscal year is:
        (1) the count of the school corporation’s pupils who met the requirements for graduation in the school year ending in the immediately preceding state fiscal year; multiplied by
        (2) one hundred seventy-six dollars ($176).
    (n) This section expires June 30, 2015.
As added by P.L.205-2013, SEC.300.