In 2005, the General Assembly passed legislation to place the agency and staff of the Indiana Professional Standards Board (IPSB) into the Indiana Department of Education. The division, now called the Division of Professional Standards, is responsible for teacher licensing, teacher testing, teacher induction and assessment, continuing education for teachers, and the accreditation of Indiana teacher preparation units.

The mission of the Division of Professional Standards is to enhance the quality of learning for Indiana's P-12 students through establishing, maintaining and ensuring adherence to performance-based standards for Indiana P-12 education professionals throughout their careers.

The legislation also retained the Indiana Professional Standards Board, now called the Advisory Board of the Division of Professional Standards. The advisory board is responsible for advising the State Superintendent of Public Instruction on all rules pertaining to the responsibilities of the Division of Professional Standards.

The IPSB is composed of 19 members, 18 of whom are appointed by the governor for staggered, 4-year terms: 9 actively employed Indiana public school teachers, 3 representing higher education, 2 representing principals, 1 representing superintendents, 1 representing special education directors, 1 representing school boards, and 1 representing business. The Superintendent of Public Instruction is an ex-officio member. The agency has 25 staff positions to support its responsibilities.