Indiana

License plates for former state legislators. Provides that a special license plate may be issued to former members of the general assembly who served: (1) for a former member of the house of representatives, not less than five terms; (2) for a former member of the senate, not less than three terms; and (3) for an individual who served in both the house of representatives and the senate, for a total of not less than 12 years.

Regulation of hemp. Defines "THC" for purposes of Indiana alcohol and tobacco law. Expands certain crimes concerning alcohol and tobacco, including crimes regarding possession by minors and sales to minors, to include products containing THC. Provides that a violation of the hemp derived cannabinoid products chapter is a deceptive act. Provides that the offense of aiding unlawful possession includes unlawful possession of a product containing THC. Provides that the alcohol and tobacco commission (commission) shall conduct random inspections of locations where products containing THC are sold. Allows law enforcement officers to engage minors who are at least 16 years of age to purchase THC products as part of a law enforcement action. Enacts provisions regulating the manufacture, distribution, sale, and transportation of hemp derived cannabinoid products (hemp derived cannabinoid products law). Requires the commission to enforce and administer the hemp derived cannabinoid products law. Provides for issuance of: (1) manufacturer permits; (2) distributor permits; (3) retail permits; and (4) carrier permits; for hemp derived cannabinoid products. Prohibits the sale of hemp derived cannabinoid products online or by delivery. Provides that a person issued a manufacturer permit may manufacture hemp derived cannabinoid products only in Indiana. Imposes packaging and labeling requirements for hemp derived cannabinoid products. Requires testing of hemp derived cannabinoid products and provides that the commission may spot test hemp derived cannabinoid products for compliance with the hemp derived cannabinoid products law. Specifies circumstances under which a hemp derived cannabinoid product shall be treated as if it is marijuana. Creates the hemp derived cannabinoid products fund and specifies purposes for which money in the fund shall be used. Imposes restrictions on advertising of hemp derived cannabinoid products. Imposes criminal penalties for violations of the hemp derived cannabinoid products law, and provides that a violation of the hemp derived cannabinoid products law is a deceptive act for purposes of Indiana law regarding deceptive consumer sales. Provides that for purposes of Indiana motor vehicle law: (1) "intoxicated" includes being under the influence of tetrahydrocannabinol; and (2) "schedule I drug" includes marijuana, hemp, and tetrahydrocannabinol. Provides that the state seed commissioner (commissioner) may issue hemp grower's licenses and hemp handler's licenses, and specifies licensure requirements and duties of licensees. Provides that the commissioner: (1) shall share information with the state police department regarding the commissioner's licensure of hemp growers and handlers; and (2) shall report specified information to the United States Secretary of Agriculture. Provides that Indiana's hemp growing programs may not operate above federal restrictions or limitations. Repeals chapters regarding: (1) distribution of low THC hemp extract; and (2) sale of low THC hemp extract. Provides that a retail establishment in which tobacco products and products containing THC (rather than tobacco products alone, under current law) account for 85% of the establishment's gross sales may not allow an individual under 21 years of age to enter the establishment. Adds federal definitions of certain hemp terms to the Indiana criminal code. Modifies definitions of "marijuana" and "smokable hemp" for purposes of the Indiana criminal code. Removes references to "delta-9-tetrahydrocannabinol" and "low THC hemp extract" in certain crimes. Provides that nothing in Indiana: (1) alcohol and tobacco law; or (2) agriculture law; may be construed under the "inclusio unius, exclusio alterius" canon of construction as legalizing marijuana. Specifies situations in which a product shall be treated as if it is marijuana. Makes an appropriation.

Causes of action and damages. Establishes a tort reform commission. Limits a civil cause of action concerning a public nuisance.

Battery against school and healthcare employees. Increases the penalty for battery on certain health care employees and school employees. Specifies that the enhancement for battery committed against a department of child services (DCS) employee applies only to those DCS employees whose responsibilities include personally supervising a child or parent, personally providing services to a child or parent, or personally interviewing a child or parent as part of an investigation. Requires the employer of a health care or school employee who is the victim of battery to make a semiannual report to the department of labor concerning workplace batteries.

Regulation of stablecoin. Prohibits a permitted payment stablecoin issuer or foreign payment stablecoin issuer from: (1) paying interest or any other type of yield; or (2) providing any other economic benefit; to a person in connection with the person's holding, use, or retention of a payment stablecoin. Provides that: (1) a payment stablecoin may be issued in Indiana only by a licensed payment stablecoin issuer; and (2) beginning July 1, 2028, subject to specified exceptions, a digital asset service provider may not offer or sell a payment stablecoin in Indiana that is not issued by a licensed payment stablecoin issuer. Requires the department of financial institutions (department) to: (1) administer licensure of persons to act as payment stablecoin issuers; and (2) regulate and supervise licensed payment stablecoin issuers. Establishes requirements for licensure as a payment stablecoin issuer and a process by which an applicant for licensure may appeal denial of the applicant's application. Imposes reporting requirements for licensed payment stablecoin issuers. Specifies powers of the department in regulating and supervising licensed payment stablecoin issuers. Specifies civil and criminal penalties for violations. Provides for priority of claims in an insolvency action regarding a licensed payment stablecoin issuer.

Relocation of outdoor advertising signs. Provides that the Indiana department of transportation or a zoning authority may not apply zoning standards or require a permit to relocate certain outdoor advertising signs. Provides that an existing outdoor advertising sign located within the boundaries of an excluded city may not be relocated outside the excluded city unless the county or municipality to which the outdoor advertising sign will be relocated approves of the relocation. Allows a zoning authority to permit or inspect a relocated outdoor advertising sign if the purpose is to ensure compliance with certain safety standards.

Natural resource entrance fees. Allows counties that meet certain criteria to adopt an ordinance to impose a surcharge of not more than $1 in addition to the fees charged by the department of natural resources (department) for entry into certain state parks and recreation areas. Provides that the surcharge may not be imposed on an annual state park pass holder. Requires the department to collect and to report and pay the surcharge to each county treasurer. Provides that the surcharge collected is to be used for certain purposes.

Scanning ballots. Specifies a process by which certain counties may scan voted optical scan ballot cards during the early voting period and on election day without using secrecy envelopes. Makes conforming amendments. Reduces the period during which in person absentee voting may occur at the office of the circuit court clerk or a satellite office from 28 days to a 16 day period ending at noon on the day before election day.

Municipal elections. Moves, as a general rule, elections of town officers to even-numbered years. Allows a town with a population of more than 10,000 to opt out of the general rule by resolution. Allows a city to pass a resolution to opt in to the general rule. Makes conforming changes.

OWI penalties. Provides that if a person has one prior OWI conviction, the court shall order that the person be imprisoned for at least 10 days or perform community service, and if a person has two prior OWI convictions, the court shall order that the person be imprisoned for at least 20 days or perform community service. Provides that a person receives good time credit while serving a sentence imposed under this statute (under current law, a person does not receive good time credit).Provides that this statute does not increase the maximum sentence for the offense as provided by either IC 35-50-2 or IC 35-50-3. Specifies that "vehicle", for purposes of the crime of operating while intoxicated, includes a watercraft, and repeals the separate crime of operating a motorboat while intoxicated. Provides that an initial hearing may be waived and allows a person to apply for a specialized driving privilege after an initial hearing. Adds operating while intoxicated due to use of a controlled substance to the habitual traffic violator statute. Authorizes the use of a roadside chemical test under certain circumstances. Specifies that ignition interlock devices may only be used when the underlying offense is operating while intoxicated resulting from the use of alcohol. Makes certain provisions concerning pretrial administrative suspension of driving privileges discretionary with the court.Provides that the budget director shall review and determine before December 31, 2026, whether federal highway administration funding to the state will or will not be reduced due to the amendment of provisions concerning administrative suspension of driving privileges. Requires the budget director to notify the budget committee of the determination and those provisions may not be implemented until after budget committee review. Makes conforming amendments.

1977 pension and disability fund. Increases the lump sum death benefit payable to the heirs or estate of a 1977 fund member. Provides that a 1977 fund member may extend their deferred retirement option plan (DROP) retirement date up to 60 months after the member entered the DROP. Makes conforming changes.

State employee retirement benefits. Requires the state to make contributions after December 31, 2026, that match, dollar for dollar, each state employee's deferred compensation contributions, not to exceed $28 per paycheck. Specifies limitations on state contributions, including the availability of biennial appropriations. Allows in certain circumstances the budget agency to suspend contributions, resume contributions, and make contributions that were missed due to suspension. Specifies a process by which portions of the funding sources for the retirement medical benefits account must be transferred to the state comptroller for the purpose of making matching contributions. Provides as a default rule that after December 31, 2026, each participant's membership in the retirement medical benefits account is terminated, participant subaccounts are forfeited, and subaccount amounts must be transferred to the state general fund. Specifies exceptions. Requires the state comptroller to transfer certain amounts from the state general fund to each participant's defined contribution plan. Specifies a time frame within which a participant in the retirement medical benefits account may elect to remain a participant. Establishes the 2027 retiree health benefit trust. Provides that the retiree health benefit trust fund will be terminated when certain conditions are met. (The introduced version of this bill was prepared by the interim study committee on pension management oversight.)

Education matters. Requires the Indiana department of education to elect to participate as a covered state in the federal tax credit scholarship program for elementary and secondary education under Section 25F of the Internal Revenue Code (enacted in Public Law 119-21, commonly known as the One Big Beautiful Bill Act of 2025). Makes conforming changes to the school scholarship tax credit in current law. Requires the governor and the department of workforce development, in consultation with the commission for higher education, to: (1) establish a process to identify eligible workforce training programs; (2) establish a process for institutions and programs to apply for recognition as an eligible workforce training program; (3) coordinate certain workforce training matters; and (4) require eligible workforce training programs to provide certain datasets to the department. Provides that the department of workforce development must maintain alignment with federal rules governing workforce Pell grants.

Emergency ambulance services. Specifies that emergency medical services, including emergency ambulance services, are essential services in Indiana. Specifies that the provision of emergency medical services is an essential purpose of political subdivisions. Requires the county commissioners of each county to: (1) identify areas that are unserved by emergency ambulance services; and (2) provide emergency ambulance services to those areas by establishing a county emergency ambulance service, contracting with a public, private, or nonprofit provider of emergency ambulance services, or by any other available means. Allows a governing body to opt out of the requirement to provide emergency ambulance services to unserved areas in certain cases. Provides that a county governing body that opts out of the provision of emergency ambulance services is immune from civil liability for personal injury or death resulting from a lack of emergency ambulance services in an area of the county.

Income tax credits. Requires the Indiana economic development corporation (IEDC) to commit $35,000,000 in redevelopment tax credits each state fiscal year among development authorities, qualified nonprofit organizations, and certain local economic development organizations that may be granted to taxpayers for qualified investments. Provides that the IEDC and an operating partner shall administer the federal Unmanned Aircraft System Test Site program in Indiana. Requires that $15,000,000 of the $300,000,000 of the IEDC's annual certifiable tax credit amount must be allocated to the small town opportunity initiative (initiative). Establishes the initiative. Provides that initiative projects are not subject to any statutory or administrative repayment obligation. Amends the venture capital investment tax credit (tax credit) to specify: (1) that certain investment policies of funds that qualify as a "qualified Indiana investment fund" apply only to investable capital, excluding management fees, legal fees, and other expenses incurred in the operation of the fund; (2) that a taxpayer is not prevented from combining individual tax credits of less than $10,000 for assignment; and (3) qualified business eligibility. Provides that if a Level 2 certified technology park (park): (1) has reached the limit of deposits for a Level 2 park; (2) maintains its certification; and (3) is located within a qualified military base enhancement area; the park shall become a Level 3 park and may receive an additional annual incremental income tax deposit of up to $250,000 until July 1, 2029.

Workforce related programs. Requires a state provider of a workforce related program (state provider) to include the following information in an annual report concerning the workforce related program: (1) The number of participants who participated in another workforce related program after completing the program. (2) The average increase in a participant's wages after the participant's completion of the workplace related program. Requires, not later than November 1, 2026, a state provider to: (1) develop a plan to collect information from participants in a workforce related program for the purpose of monitoring outcomes for the participants; and (2) submit a report describing the plan to the legislative council.

Nonprofit hospitals. Sets forth additional requirements for a nonprofit hospital's community benefits plan (plan). Requires a nonprofit hospital to spend more under the nonprofit hospital's plan than the nonprofit hospital's estimated tax exemption value. Allows the Indiana department of health (state department) to enforce compliance with the plan requirements. Sets forth additional reporting requirements for a nonprofit hospital's annual plan report (report). Requires the state department to review the report for compliance and to verify certain reported expenditure data. Allows for the assessment of a penalty for violations.

Applied behavioral analysis therapy services. Requires, upon request, a public school to consult with and allow certain licensed or board certified behavior analysts and certified registered behavior technicians to provide applied behavioral analysis therapy services in the public school to a student under certain conditions in accordance with the student's special education program or plan. Provides immunity from civil liability for any actions taken in good faith to comply with the requirements. Requires the department of education to prepare and provide information and guidance to assist public schools in implementing the requirements.

School technology plans and policies. Requires school corporations and charter schools (schools) to include in the school's technology plan a description of the school's plan to: (1) ensure the appropriate use of technological devices in schools; and (2) enable parents of students to exercise control over a student's technological devices while the student is not in school or engaged in virtual instruction or remote learning. Not later than January 1, 2027, requires a school to include in the school's Internet use policy a provision that enables the parent of a student to increase the strength of certain filters, block access to websites or content, and limit the use of certain devices. Creates an exemption from the Internet use policy requirement. Requires a school to include in the school's wireless communication device policy a provision that prohibits a student from using school supplied technological devices for a noneducational purpose during instructional time.

Land use and development. Requires a development that is sited on land: (1) in an area zoned agricultural; and (2) comprised of certain capability classes of soils; to be a permitted use. Extends governmental immunity to a private entity or nonprofit entity that has executed certain agreements under the Indiana brownfields program. Provides that before a qualified data center user may use a specific transaction award certificate issued after June 30, 2026, to purchase qualified data center equipment eligible for the state gross retail tax exemption, the qualified data center user and a local unit that issues after June 30, 2026, a permit authorizing the development, construction, or operation of the qualified data center in the unit shall enter into a written agreement that includes a commitment by the qualified data center user to contribute to the local unit an amount equal to at least 1% of the amount of taxes that are not paid on each purchase of qualified data center equipment that is made: (1) using the specific transaction award certificate; and (2) during the duration of the specific transaction award certificate. For purposes of the statute concerning energy production zones: (1) redesignates the term "electric generation facility" as "electric generation or storage facility"; and (2) provides that the term includes a utility scale battery energy storage system (BESS). Provides that if a planned electric generation or storage facility will include a BESS, the project owner must include in the required statutory notice to the local planning authority: (1) the emergency response plan required under the statute governing the approval of a BESS by the department of homeland security (department); and (2) documentation of the department's approval of the BESS. Makes conforming changes. Allows a plan commission, board of zoning appeals, or county or municipal legislative body (body) to require a person to provide their name and address in writing in order to speak at a public hearing regarding certain matters. Allows the body's presiding officer to give consideration to whether a person is a county resident or has an interest as an owner, lessor, lessee, or life tenant in real property within the county in deciding: (1) the order of speakers; and (2) the amount of time allotted to speakers; at a hearing.

Unlawful proposition penalties. Provides that at the time of sentencing for a person convicted of making an unlawful proposition the court may require the person to complete a prostitution offender program approved by the court. Requires a person ordered to complete a prostitution offender program to pay a fee.

Township reorganization. Provides that on January 1, 2028, certain townships are dissolved and their powers, duties, offices, and property are transferred to a municipality or county. Requires a township to adopt a resolution not later than June 1, 2026, that designates the municipality or county (designated unit) that will reorganize with the township. Requires the appointment of a joint board consisting of representatives of the township and the designated unit to prepare a plan of reorganization. Provides that a township must reorganize with the county if: (1) the township does not adopt a resolution by June 1, 2026; or (2) the municipality that the township designated in its resolution does not adopt a reorganization plan by December 31, 2026. Provides that if: (1) the designated unit is a municipality; and (2) part of a township is located outside the municipality; the municipality must establish an urban township services district and a rural township services district. Requires the county fiscal body to approve the budget, tax rate, and tax levy imposed by the municipality within the boundaries of the rural township services district. Provides that a designated unit has all of the powers of the government modernization act in reorganizing the township. Amends the government modernization act to require a political subdivision to respond to a resolution that names the political subdivision as a participant in a proposed reorganization. Provides that a township that operates a fire department is not subject to dissolution. Provides that a township does not operate a fire department if the township is a participating unit (not a provider unit) in a fire protection territory (territory) or is within a fire protection district (district). Provides that after a reorganization: (1) the area within the boundaries of the dissolved township remains in the territory or district; and (2) the designated unit succeeds the dissolved township in its role in the territory or district.

Real property assessment. Establishes the real property assessment task force (task force) to review issues related to real property assessment in Indiana. Sets forth membership, and requires the task force to issue a report to the general assembly not later than November 1, 2026. Adds representatives with certain categories of expertise to the real property assessment task force.

Foods and beverages on school property. Provides that a public school that participates in a federally funded or assisted meal program: (1) may not serve, sell, or allow a third party vendor to serve or sell a food or beverage that contains certain ingredients on school property on a school day; and (2) shall post any breakfast or lunch menu and ingredients on the school's website. Establishes exceptions.

Innkeeper's tax. Authorizes the city of New Haven to impose an innkeeper's tax at a flat rate that does not exceed $5 per night. Amends provisions regarding distribution and uses of the Hamilton County innkeeper's tax. Makes corresponding changes to statutes concerning innkeeper's tax administration.