Indiana sets technology contract checks and foreign ties rules

State agencies and local governments must require some technology contractors to confirm they and their subcontractors are not prohibited persons. This covers state agencies and local governments contracting for information systems, surveillance, lidar, or artificial intelligence products or services; it excludes unmanned aerial systems. The rule applies to new contracts entered after June 30, 2026, and existing contracts amended or renewed after June 30, 2027.

A person acting as an agent of a covered foreign principal must register with the attorney general, and certain politically active groups with recent foreign support must file yearly reports. Agent registration applies when a person acts for a covered foreign principal, receives its financing, and engages in political activity in Indiana. Annual group filings cover organizations meeting the foreign-support and political-activity rules. Agent registration carries a $500 initial fee and a $100 fee for each supplemental filing. A foreign-supported political organization must report political spending and covered foreign support from the prior calendar year. These rules apply to covered agency and political activity after December 31, 2026. Agents must register before or within 30 days after starting; groups file by February 1 each year.

The attorney general may investigate suspected affiliates of foreign terrorist organizations; the governor may designate an affiliate, which then faces state-benefit and contract bans. A designation covers a person or entity found to be an affiliate of an organization the U.S. government has designated as a foreign terrorist organization. The attorney general must give the person or entity 30 days to respond to a proposed finding and send the evidence and response to the governor. The governor may designate an affiliate only if the evidence shows it is more likely than not. The designation lasts until rescinded; it may be rescinded if it was wrong or the supporting actions occurred more than five years ago. The chapter takes effect July 1, 2026. The designation consequences apply after the governor makes the designation and continue until it is rescinded.

State colleges may not admit certain foreign students to listed programs until a security review is complete, and they must refuse or remove students who meet specified disqualifying conditions. This applies to foreign citizens of listed adversary countries who are not U.S. citizens, permanent residents, or granted asylum, and to state colleges' undergraduate through postdoctoral programs in specified fields. Students enrolled by August 14, 2026 are exempt. A student cannot be admitted if they refuse or fail to provide information needed for the review; the college may not enroll a student if the review indicates they are an agent of a foreign adversary. Before enrollment, the student must attest they have not accepted and will not accept direct or indirect funding from a foreign adversary. If the college learns the student accepted such funding, it must immediately unenroll them. The review requirement begins August 15, 2026. The chapter takes effect upon passage.

Certain foreign individuals and companies may not acquire Indiana property or enter most new leases; the attorney general can seek a court-supervised sale for violations. The limits cover listed foreign individuals, companies and their agents, with exceptions for U.S. citizens, permanent residents, dual citizens, and people granted asylum. The ban does not cover a lease of a home for up to 24 months. A person with a valid nonimmigrant visa may buy a single-family home lot of up to one-half acre if the visa lasts more than 12 months after purchase and the person is not an agent of a foreign adversary. For property already owned on July 1, 2026, the attorney general may seek forced sale only by proving with clear and convincing evidence that the owner acts as an agent of a foreign adversary. A court must make written findings before ordering sale. The acquisition and new-lease restrictions apply after June 30, 2026. The special rule for property already owned applies to interests held on July 1, 2026.