How do Indiana schools use school discipline? The first briefing paper explored controversies at the national level concerning the philosophy and practice of zero tolerance. That exploration found that many of the assumptions of zero tolerance are not supported by evidence. The data suggest that zero tolerance tends to be associated with a number of negative school outcomes, including school dropout, negative school climate, and racial disparities. This information is mostly from studies at the national level, however, and does not necessarily address school discipline in Indiana. Thus, this briefing paper describes school disciplinary practices in this state. Specifically, it describes trends in the use of out-of-school suspension and expulsion in the state for the 2002-2003 school year, and the school and district characteristics that are associated with the use of suspension and expulsion. It also reports on a survey of Indiana's school principals regarding school discipline. Finally, the report explores the relationship for Indiana's students between student discipline and academic achievement. (Contains 1 table, 9 color enhanced figures, and 21 endnotes.) [This report was published by the Center for Evaluation and Education Policy, Indiana University, and the Indiana Youth Services Association.]