School report card, students who receive a nonstandard high school diploma upon graduation not considered in assigning grade

HB 406 would amend Alabama's school grading system to exclude students on alternative education pathways who receive a non-standard high school diploma (instead of the standard diploma) from the performance metrics used to assign annual report card grades. Starting in the 2026-2027 school year, these students' academic data would no longer be factored into school or district report card calculations. This change directly affects schools serving students on such pathways by adjusting how their overall performance is measured for accountability purposes. The bill does not alter diploma requirements but modifies the grading criteria to better reflect school performance for this student group.