The bill says traditional public and charter schools can not discriminate against students or parents because of their religious beliefs.
The full Senate will consider a bill next week that would leave the decision about whether cosmetologists can shave mustaches and beards to a state board.
During the last session of the General Assembly, a bill requiring all school buses to have seat belts by 2015 did not pass.
Confusion over which Democrat was to offer the next amendment may have halted the process.
Indiana state officials and survivors of the ship's sinking were on hand for the ribbon cutting ceremony Tuesday.