Shown verbatim: the complete text as captured from the official PDF posted by the Indiana General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 256
AN ACT to amend the Indiana Code concerning state offices and
administration.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 1-1-15.3 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]:
Chapter 15.3. Prohibition on Technology Contracts with
Certain Foreign Owned Companies
Sec. 1. As used in this chapter, "business entity" means:
(1) a corporation, professional corporation, nonprofit
corporation, limited liability company, partnership, or limited
partnership; or
(2) the equivalent of any entity described in subdivision (1).
Sec. 2. As used in this chapter, "controlling person" means:
(1) a beneficial owner (as defined in IC 23-1-20-3.5) of at least
fifty-one percent (51%) of the shares of a business entity;
(2) an officer, a director, or another individual who possesses
inside information about a business entity because of the
officer, director, or other individual's relationship with the
business entity; or
(3) a person, individually or as a member of a group, who has
the ability to directly or indirectly affect a business entity's
management or policies.
Sec. 3. As used in this chapter, "foreign adversary" includes the
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following:
(1) The People's Republic of China.
(2) The Russian Federation.
(3) The People's Republic of North Korea.
(4) The Islamic Republic of Iran.
(5) A foreign government listed in 15 CFR 791.4.
(6) A country designated as a threat to critical infrastructure
by the governor under IC 1-1-16-8.
Sec. 4. (a) As used in this chapter, "prohibited person" includes
the following:
(1) A business entity organized under the laws of a foreign
adversary.
(2) A business entity headquartered in a foreign adversary.
(3) A business entity with a controlling person that is one (1)
of the following:
(A) An individual who is a citizen of a foreign adversary.
(B) An individual who is domiciled in a foreign adversary.
(C) A business entity or other entity, including a
governmental entity, that is owned or controlled by an
individual who is a citizen of or domiciled in a foreign
adversary, or is directly controlled by the government of
a foreign adversary.
The term, as used in subdivision (3)(A) and (3)(B), does not include
an individual who holds dual citizenship with a foreign adversary
(as defined in 15 CFR 791.4) and the United States, an individual
who is a citizen or lawful permanent resident of the United States,
or an individual who has been granted asylum in the United States.
(b) The term includes an agent, a trustee, or a fiduciary acting
on behalf of a prohibited person.
Sec. 5. As used in this chapter, "qualified entity" means any of
the following:
(1) The state.
(2) A state agency (as defined in IC 1-1-15-3).
(3) A political subdivision (as defined in IC 36-1-2-13).
Sec. 6. (a) As used in this chapter, "technological product or
service" means a product or service used for information systems,
surveillance, light detection and ranging, or artificial intelligence.
(b) The term does not include an unmanned aerial system.
Sec. 7. (a) After:
(1) June 30, 2026, a new contract entered into; and
(2) June 30, 2027, an existing contract amended or renewed;
by a qualified entity for the provision of a technological product or
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service must contain a provision requiring the contractor to
confirm that the contractor and any subcontractors working under
the contract for the contractor are not prohibited persons.
(b) A breach of the provisions under this section may be
regarded as a material breach of the contract.
SECTION 2. IC 4-6-17 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]:
Chapter 17. Foreign Agent Registration and Foreign Terrorist
Organizations
Sec. 1. As used in this chapter, "affiliate of a foreign terrorist
organization" means a person who:
(1) is or was an agent, representative, employee, or servant of
a foreign terrorist organization;
(2) acts or acted in any capacity at the order or request or
under the direction or control of a foreign terrorist
organization; or
(3) provides, or at any point in the preceding five (5) years
provided, material support or resources to aid a foreign
terrorist organization.
Sec. 2. As used in this chapter, "agent" means an agent of a
covered foreign principal.
Sec. 3. As used in this chapter, "agent of a covered foreign
principal" means a person who meets all of the following:
(1) A person who either:
(A) is an agent, a representative, an employee, or a
servant; or
(B) acts in any capacity at the order, request, or under the
direction or control;
of a covered foreign principal.
(2) A person whose activities are directly or indirectly
financed in whole or in part by a covered foreign principal.
(3) A person who engages in political activity on behalf of a
covered foreign principal in Indiana.
Sec. 4. As used in this chapter, "covered foreign principal"
means one (1) or more of the following:
(1) The government of a hostile foreign country, a political
party of a hostile foreign country, or any member of a
political party of a hostile foreign country.
(2) A nonresident alien of a hostile foreign country.
(3) A partnership, an association, a corporation, an
organization, or any other combination of persons organized
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under the laws of, or having its principal place of business in,
a hostile foreign country.
(4) A partnership, an association, a corporation, an
organization, or any other combination of persons that is at
least fifty-one percent (51%) beneficially owned by a hostile
foreign country, the government of a hostile foreign country,
a nonresident alien of a hostile foreign country, or an entity
organized under the laws of, or having its principal place of
business in, a hostile foreign country.
Sec. 5. As used in this chapter, "foreign supported political
organization" means a political party, or a domestic partnership,
an association, a corporation, an organization, or any other
combination of persons:
(1) that has, within the previous three (3) calendar years,
received money or anything of value from a covered foreign
principal or an agent, unless the money or thing of value:
(A) was obtained through bona fide commercial activity
engaged in connection with an arm's length transaction; or
(B) is less than ten percent (10%) of the annual revenue of
the:
(i) political party;
(ii) domestic partnership;
(iii) association;
(iv) corporation;
(v) organization; or
(vi) other combination of persons; and
(2) that engages in political activity.
Sec. 6. As used in this chapter, "foreign terrorist organization"
means any organization designated by the United States
government as a Foreign Terrorist Organization under Section 219
of the Immigration and Nationality Act (8 U.S.C. 1189).
Sec. 7. As used in this chapter, "hostile foreign country" means
one (1) or more of the following:
(1) The People's Republic of China.
(2) The Russian Federation.
(3) The People's Republic of North Korea.
(4) The Islamic Republic of Iran.
(5) A foreign country listed in 15 CFR 791.4.
(6) A country designated as a threat to critical infrastructure
by the governor under IC 1-1-16-8.
Sec. 8. As used in this chapter, "political activity" means an
activity that is performed with the intent to influence:
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(1) a state or local governmental entity, agency, or public
official in Indiana; or
(2) the general public in Indiana;
concerning the formulation, adoption, or modification of the laws
or policies of the state, or the election or opposition to the election
of a candidate for state or local office.
Sec. 9. (a) This section applies to a person who acts as an agent
of a covered foreign principal after December 31, 2026.
(b) Before or not later than thirty (30) calendar days after
beginning to act as an agent of a covered foreign principal, a
person who acts as an agent shall file with the attorney general a
true and complete registration statement in addition to
supplements as required.
(c) The registration statement must include the following:
(1) The registrant's name.
(2) The registrant's principal business address.
(3) If the registrant is a partnership, the names of each
partner and the locations of their domiciles.
(4) If the registrant is an association, a corporation, an
organization, or any other combination of individuals, the
names and the locations of the domiciles of each director,
officer, and person performing the functions of a director or
officer.
(5) A description of the circumstances requiring the filing of
the registration statement, including the following:
(A) The name and primary foreign address of the covered
foreign principal for whom the registrant is acting or will
act as an agent.
(B) Each category described in section 4(1) through 4(4) of
this chapter that applies to the covered foreign principal.
(C) The nature of the relationship between the registrant
and the covered foreign principal that qualifies the
registrant as an agent of a covered foreign principal under
section 3 of this chapter.
(6) A comprehensive statement of the nature of the
registrant's business.
(7) Other statements, information, or documents pertinent to
the purposes of this chapter as the attorney general may
require by regulation.
(d) A registrant must update the information required to reflect
any material change in the information not later than ninety (90)
calendar days after the material change occurred.
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(e) An agent shall pay a fee of five hundred dollars ($500) at the
time the agent files an initial registration statement under this
chapter.
(f) An agent shall pay a fee of one hundred dollars ($100) each
time the agent files a supplemental registration statement under
this section.
(g) A fee established by the attorney general in accordance with
this section must accompany an application for registration or
renewal of registration.
(h) Failure to comply with subsections (b) through (d) is a
violation of this chapter.
Sec. 10. (a) This section applies to the political activity of a
foreign supported political organization occurring after December
31, 2026.
(b) Before February 1 of each year, a foreign supported political
organization must file with the attorney general a registration
statement in addition to supplements as required by the attorney
general.
(c) The registration statement must include the following:
(1) The name of the foreign supported political organization,
its business address, and the names and addresses of all
officers and directors of the foreign supported political
organization.
(2) If the foreign supported political organization is affiliated
with or is a chapter of a national organization, the name of the
national organization, its address, and the names and titles of
its officers and directors.
(3) A statement that describes any:
(A) expenditures made by the organization; and
(B) money or thing of value received by the organization
from a covered foreign principal or an agent;
for the purpose of political activity during the preceding
calendar year.
(d) A registrant must update the information required to reflect
any material change in the information not later than ninety (90)
calendar days after the material change occurred.
(e) A foreign supported political organization shall pay a fee of
five hundred dollars ($500) at the time the organization files an
initial registration statement under this section.
(f) A fee established by the attorney general in accordance with
this chapter must accompany an application for registration or
renewal of registration.
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(g) Failure to comply with subsections (b) through (d) is a
violation of this chapter.
Sec. 11. (a) This section applies after December 31, 2026.
(b) It is a violation of this chapter if a person:
(1) without exercising reasonable care, submits a registration
statement required to be filed under this chapter that is
materially incorrect;
(2) fails to file a corrected registration statement or report
after being requested to do so by the attorney general; or
(3) fails to make a filing required by section 9 or 10 of this
chapter.
Sec. 12. (a) Whenever the attorney general has reasonable cause
to believe a person or entity may be an affiliate of a foreign
terrorist organization, the attorney general may exercise all
existing civil investigative powers, including the issuance of civil
investigative demands, to determine whether the entity is an
affiliate of a foreign terrorist organization.
(b) If the attorney general determines, based on the attorney
general's investigation, that a person or entity is an affiliate of a
foreign terrorist organization, the attorney general shall notify the
person or entity of the attorney general's determination and
provide the entity with thirty (30) days in which to submit a formal
response to the attorney general's determination.
(c) The attorney general shall provide the attorney general's
determination, the evidence on which it is based, and the person's
or entity's response to the governor.
Sec. 13. The governor shall designate a person or entity as an
affiliate of a foreign terrorist organization if the governor
concludes, based on a review of the results of the investigation
conducted by the attorney general under section 12 of this chapter
and the person's or entity's formal response, that the evidence
amassed by the attorney general demonstrates that it is more likely
than not that the person or entity is an affiliate of a foreign
terrorist organization.
Sec. 14. (a) As used in this section the term, "recipient of state
funds" does not include a public depository designated under
IC 5-13-9.5-3.
(b) Any person or entity that is designated an affiliate of a
foreign terrorist organization shall:
(1) be denied all state funds provided by any state agency,
including:
(A) funding;
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(B) benefits; or
(C) other forms of support;
received or provided, directly or indirectly, from the state;
(2) be prohibited from entering into any contract with the
state; and
(3) be denied any:
(A) employment;
(B) tax benefit;
(C) privilege; or
(D) other form of a state benefit or privilege, whether
provided or received directly or indirectly.
(c) No public university, community college, school district, or
other recipient of state funds may, after the date the governor
designates that a person or entity is an affiliate of a foreign
terrorist organization under section 13 of this chapter, knowingly
provide a grant, contract, loan, tax credit, tax exemption, or other
financial benefit to an affiliate of a foreign terrorist organization.
Sec. 15. (a) A designation under section 13 of this chapter
remains in effect until rescinded by the governor.
(b) The governor shall rescind a designation under section 13 of
this chapter only if:
(1) the governor determines that the designation was
erroneous; or
(2) the governor determines that the actions of the person or
entity that support the designation occurred more than five
(5) years ago.
Sec. 16. (a) If the attorney general has probable cause to believe
a violation of this chapter has occurred, the attorney general may
bring an action in the name of the state in connection with a
violation of this chapter to seek:
(1) appropriate injunctive or other equitable relief;
(2) the costs and expenses of the suit, including reasonable
attorney's fees and expert fees; and
(3) a civil penalty of not more than five hundred dollars
($500).
(b) If a violation of this chapter is committed intentionally, or
constitutes a second or subsequent violation, the attorney general
may bring a civil action to recover a civil penalty of not more than
ten thousand dollars ($10,000) per violation, in addition to the
relief provided in subsection (a)(1) and (a)(2).
(c) A civil penalty collected under this chapter shall be deposited
in the state general fund.
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Sec. 17. The attorney general may adopt rules under IC 4-22-2
to carry out this chapter.
SECTION 3. IC 21-49-7 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
Chapter 7. Admission and Enrollment of Certain Foreign
Students in Qualifying Programs
Sec. 1. This chapter does not apply to a foreign student who is
admitted to or enrolled in a qualifying program at a state
educational institution as of August 14, 2026.
Sec. 2. As used in this chapter, "agent of a foreign adversary"
means a person:
(1) who either:
(A) is an agent, a representative, an employee, or a
servant; or
(B) acts in any capacity at the order, request, or under the
direction or control;
of the government of a foreign adversary; and
(2) whose activities are directly or indirectly financed in whole
or in part by the government of a foreign adversary.
Sec. 3. As used in this chapter, "approved postsecondary
educational institution" has the meaning set forth in IC 21-7-13-6.
Sec. 4. As used in this chapter, "foreign adversary" includes the
following:
(1) The People's Republic of China.
(2) The Russian Federation.
(3) The People's Republic of North Korea.
(4) The Islamic Republic of Iran.
(5) A foreign government listed in 15 CFR 791.4.
(6) A country designated as a threat to critical infrastructure
by the governor under IC 1-1-16-8.
Sec. 5. As used in this chapter, "foreign student" means an
individual who is:
(1) a citizen of a foreign adversary; and
(2) not a United States citizen or an alien who is admitted into
the United States for lawful, permanent residence or has been
granted asylum in the United States.
Sec. 6. As used in this chapter, "qualifying program" refers to
one (1) of the following fields of study at the undergraduate,
graduate, doctoral, or postdoctoral level:
(1) Chemical engineering.
(2) Electrical engineering.
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(3) Industrial engineering.
(4) Mechanical engineering.
(5) Artificial intelligence.
(6) Computer science.
(7) Microbiology.
(8) Virology.
(9) A field of study designated by the commissioner for higher
education under section 11 of this chapter.
Sec. 7. As used in this chapter, "state educational institution"
has the definition set forth in IC 21-7-13-32.
Sec. 8. (a) Beginning August 15, 2026, a state educational
institution may not admit a foreign student into a qualifying
program until the state educational institution has completed a
foreign influence and research security review for the foreign
student.
(b) A foreign influence and research security review required
under subsection (a) must include, at a minimum, a review of the
following information concerning the foreign student:
(1) All current and past affiliations, paid or unpaid, including
academic, research, government, and commercial affiliations.
(2) All outside support related to the foreign student's
education, training, or research activities, including foreign
funding sources such as tuition aid, travel aid, complimentary
travel, scholarships, or stipends.
(3) Any agreements, including intellectual property
agreements, employment agreements, consulting agreements,
or other obligations that relate to the foreign student's
research, education, or training.
(4) Any planned external collaboration, supervision, or
research reporting relationship or requirement with a person
outside of the state educational institution.
(5) Whether the foreign student or the foreign student's
parent, sibling, or spouse, including those related by blood or
marriage, are any of the following:
(A) An employee of the government of a foreign adversary.
(B) A member of a political party of a foreign adversary.
(C) A member of a united front organization or a similar
association or organization that is sponsored or supported
by the government of a foreign adversary and exists to
encourage support of the government of the foreign
adversary.
(6) Whether the foreign student was previously employed by
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the government of a foreign adversary or served in the
military or security services for the government of a foreign
adversary.
(c) If a state educational institution obtains information while
conducting a foreign influence and research security review on a
foreign student that indicates the foreign student is an agent of a
foreign adversary, the state educational institution may not enroll
the foreign student.
(d) A state educational institution may not admit a foreign
student who refuses or fails to provide the state educational
institution with any information necessary to complete a foreign
influence and research security review under this section.
Sec. 9. (a) A foreign student who is admitted into a state
educational institution after a foreign influence and research
security review is completed under section 8 of this chapter must
sign an attestation stating that the foreign student has not accepted
and will not accept any direct or indirect financial support or
funding from a foreign adversary before the state educational
institution may enroll the foreign student in the qualifying
program.
(b) If a state educational institution obtains information that a
foreign student has accepted direct or indirect financial support or
funding from a foreign adversary, the state educational institution
must immediately unenroll the foreign student.
Sec. 10. A foreign student who is enrolled in a qualifying
program at a state educational institution must immediately
disclose the following to the state educational institution:
(1) Any changes to the information regarding the foreign
student provided in section 8(b)(5) or 8(b)(6) of this chapter.
(2) Any contact with an agent of a foreign adversary.
Sec. 11. (a) Subject to subsection (b), the commissioner for
higher education may designate a field of study as a qualifying
program.
(b) The commissioner for higher education must provide the
board of trustees of each state educational institution and approved
postsecondary educational institution with notice of the designation
of a field of study as a qualifying program under subsection (a) not
later than six (6) months prior to the start of the next academic
term.
Sec. 12. (a) Not later than November 1, 2026, an approved
postsecondary educational institution shall provide to the
commission for higher education the following information:
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(1) The number of foreign students enrolled in a qualifying
program at the approved postsecondary educational
institution as of August 15, 2026.
(2) The number of foreign students enrolled in a qualifying
program at the approved postsecondary educational
institution for each academic year for the preceding ten (10)
years.
(b) This section expires July 1, 2027.
SECTION 4. IC 32-22-3 IS REPEALED [EFFECTIVE JULY 1,
2026]. (Rights of a Foreign Business Entity to Hold and Convey
Agricultural Land).
SECTION 5. IC 32-22-3.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]:
Chapter 3.5. Prohibition on Ownership of Land by Certain
Foreign Owned Companies and Foreign Individuals
Sec. 1. (a) As used in this chapter, "acting as an agent of a
foreign adversary" means to knowingly engage in conduct at the
direction of or under the control of a foreign adversary that
materially advances the foreign adversary's strategic, intelligence,
or military objectives.
(b) The term does not include the ownership or operation of a
business entity that engages solely in ordinary commercial
activities for profit and that is not subject to the direction, control,
or material influence of the foreign adversary with respect to the
conduct at issue.
Sec. 2. As used in this chapter, "agent of a foreign adversary"
means a person:
(1) who either:
(A) is an agent, a representative, an employee, or a
servant; or
(B) acts in any capacity at the order, request, or under the
direction or control;
of the government of a foreign adversary; and
(2) whose activities are directly or indirectly financed in whole
or in part by the government of a foreign adversary.
Sec. 3. As used in this chapter, "business entity" means:
(1) a corporation, professional corporation, nonprofit
corporation, limited liability company, partnership, or limited
partnership; or
(2) the equivalent of any entity described in subdivision (1).
Sec. 4. As used in this chapter, "controlling person" means:
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(1) a beneficial owner (as defined in IC 23-1-20-3.5) of at least
fifty-one percent (51%) of the shares of a business entity;
(2) an officer, a director, or any other individual who
possesses inside information about a business entity because
of the officer, director, or other individual's relationship with
the business entity; or
(3) a person, individually or as a member of a group, who has
the ability to directly or indirectly affect a business entity's
management or policies.
Sec. 5. As used in this chapter, "foreign adversary" includes the
following:
(1) The People's Republic of China.
(2) The Russian Federation.
(3) The People's Republic of North Korea.
(4) The Islamic Republic of Iran.
(5) A foreign government listed in 15 CFR 791.4.
(6) A country designated as a threat to critical infrastructure
by the governor under IC 1-1-16-8.
Sec. 6. (a) As used in this chapter, "prohibited person" includes
the following:
(1) An individual who is a citizen of a foreign adversary.
(2) An individual who is domiciled in a foreign adversary.
(3) A business entity organized under the laws of a foreign
adversary.
(4) A business entity headquartered in a foreign adversary.
(5) A business entity with a controlling person that is one (1)
of the following:
(A) An individual who is a citizen of a foreign adversary.
(B) An individual who is domiciled in a foreign adversary.
(C) A business entity or other entity, including a
governmental entity, that is owned or controlled by an
individual described in subdivision (1) or (2), or is directly
controlled by the government of a foreign adversary.
The term, as used in subdivisions (1), (2), (5)(A), and (5)(B), does
not include an individual who holds dual citizenship with a foreign
adversary and the United States, an individual who is a citizen or
lawful permanent resident of the United States, or an individual
who has been granted asylum in the United States.
(b) The term includes an agent, a trustee, or a fiduciary acting
on behalf of a prohibited person.
Sec. 7. Except as provided in section 7.5 of this chapter, after
June 30, 2026, a prohibited person may not do any of the following:
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(1) Acquire by grant, purchase, devise, descent, or otherwise
any real property located in Indiana.
(2) Acquire by grant, purchase, devise, descent, or otherwise
any mineral right or water or riparian right on any real
property located in Indiana.
(3) Enter into a new lease agreement as a lessee for any real
property located in Indiana. This subdivision does not apply
to a lease agreement to which the following apply:
(A) The real property that is the subject of the lease
agreement will be used only for residential purposes.
(B) The lease agreement is for a term of not more than
twenty-four (24) months.
(4) Enter into a new lease agreement for any mineral right or
riparian right on any real property located in Indiana.
Sec. 7.5. An individual who has a valid, unexpired
nonimmigrant visa may purchase real property located in Indiana
if:
(1) the individual's visa is valid for more than twelve (12)
months after the acquisition of the real property;
(2) the real property is zoned for single family residential use;
(3) the real property is not more than one-half (1/2) acre; and
(4) the individual has been determined not to be an agent of a
foreign adversary.
Sec. 8. (a) This section applies to a prohibited person that owns
an interest in real property located in Indiana on July 1, 2026.
(b) A prohibited person that owns an interest in real property
located in Indiana on July 1, 2026, shall not act as an agent of a
foreign adversary.
(c) The attorney general may bring an action under section 9 of
this chapter to require divestiture of a prohibited person's real
property interest only if the attorney general establishes, by clear
and convincing evidence, that the prohibited person is acting as an
agent of a foreign adversary.
(d) If the attorney general makes a prima facie showing under
subsection (c), the burden of proof shifts to the prohibited person
to demonstrate, by a preponderance of the evidence, that the
ownership or control of the real property does not present a risk of
the prohibited person acting as an agent of a foreign adversary.
(e) A court may not order divestiture under section 9 of this
chapter unless the court enters written findings of fact and
conclusions of law establishing that the attorney general has
satisfied the burden required under subsection (c) and that
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divestiture is permitted under this section.
Sec. 9. (a) Upon receipt of information that leads the attorney
general to believe a prohibited person has violated section 7, 7.5, or
8 of this chapter, the attorney general shall investigate the alleged
violation and may issue subpoenas requiring the:
(1) appearance of witnesses;
(2) production of relevant records; and
(3) giving of relevant testimony.
(b) The attorney general shall enforce a violation of section 7,
7.5, or 8 of this chapter by commencing a receivership proceeding
under IC 32-30-5-1 and selling the real property or the interest in
real property through the receivership. The following apply to a
receivership proceeding under this section:
(1) Proceeds of the sale shall be paid as follows:
(A) To lienholders, in their order of priority, except for
liens that under the terms of the sale are to remain on the
property.
(B) The costs of the receivership and sale, including
reasonable attorney's fees and expert fees.
(C) No proceeds shall be distributed from the receivership
sale to the prohibited person. Any excess proceeds are
forfeited and shall be transferred to the state general fund
by the receiver.
(2) If a receivership proceeding is initiated under this section,
the prohibited person is personally liable for a civil penalty in
the amount of ten percent (10%) of the market value of the
real property, payable to the state general fund.
(3) At the receivership sale, lienholders shall be able to have
a credit bid in an amount that is not more than the amount
owed to the lienholder on the date of the sale, as established in
the court order for the sale of the property.
(4) Upon commencement of an action under this section, the
attorney general shall promptly file a notice of lis pendens
with the clerk of court. Upon the entry of an order for the sale
of the real property under this section, the attorney general
shall promptly record a copy of the order in the office of the
recorder of the county where the property is located.
(c) The responsibility for determining whether an individual or
other entity is subject to section 7, 7.5, or 8 of this chapter rests
solely with the prohibited person and the attorney general and no
other individual or entity. An individual or other entity who is not
a prohibited person shall bear no civil or criminal liability for
SEA 256 — CC 1
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failing to determine or make inquiry of whether an individual or
other entity is a prohibited person.
(d) Except for an interest created after the effective date of the
lis pendens notice filed under subsection (b)(4), divestiture of a
prohibited person's title under this section shall not be a basis to
void, invalidate, or otherwise extinguish any bona fide mortgage,
lien, or other interest granted by, through, or under the prohibited
person. An interest created after the effective date of the lis
pendens notice filed under subsection (b)(4) is void upon entry of
an order for the sale of the real property under this section.
SECTION 6. IC 34-30-2.1-525.4 IS REPEALED [EFFECTIVE
JULY 1, 2026]. Sec. 525.4. IC 32-22-3-4.5(c) (Concerning agricultural
land purchased or leased by a prohibited person).
SECTION 7. IC 34-30-2.1-525.5 IS REPEALED [EFFECTIVE
JULY 1, 2026]. Sec. 525.5. IC 32-22-3-6.5(c) (Concerning agricultural
land held by a prohibited person).
SECTION 8. IC 34-30-2.1-525.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 525.6. IC 32-22-3.5-9 (Concerning
land held by a prohibited person).
SECTION 9. IC 36-1-32-3, AS ADDED BY P.L.136-2024,
SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) A unit may not enter into a sister city
agreement or any cooperative agreement with a prohibited person.
(b) Any agreement or cooperative agreement between a unit and
a prohibited person is contrary to public policy and is void and
unenforceable.
SECTION 10. An emergency is declared for this act.
SEA 256 — CC 1
President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
SEA 256 — CC 1Every fact on this page links to its source, starting with the official bill record.