HB1099
Foreign adversaries.
TL;DR
Indiana HB1099, sponsored by Rep. Matt Commons and others, restricts foreign adversary involvement in state contracts, university enrollment, and real estate. It lets state entities contract with 'prohibited persons' for tech products only if the contractor certifies neither they nor their subcontractors act as agents of a foreign adversary (think China, Russia, Iran, North Korea), and it bars certain foreign individuals and entities from buying Indiana real property.
How This Might Impact Your Business
Technology vendors selling to Indiana state agencies, universities, or other 'qualified entities' must provide written affirmation that neither the contractor nor any subcontractor acts as an agent of a foreign adversary, adding a new certification step to every public sector deal.
Companies with foreign ownership ties (particularly to China, Russia, Iran, North Korea, Cuba, Venezuela) face heightened scrutiny and may be classified as 'prohibited persons,' effectively locking them out of Indiana public contracts unless they can prove independence.
Postsecondary institutions (public and private) must report foreign student enrollment in 'qualifying programs' (likely STEM/sensitive research) to the Commission for Higher Education, including 10 years of historical data, creating new administrative reporting obligations.
Real estate developers, brokers, and title companies must screen buyers, since certain foreign individuals and business entities are barred from acquiring Indiana real property; deals could be voided if buyers fall into prohibited categories.
Agricultural landowners and buyers see the existing foreign ag-land ownership statute repealed and replaced with this broader property restriction, changing due diligence requirements for farmland transactions.
The bill has passed one chamber and is advancing, so compliance timelines could arrive quickly once enacted; no specific monetary penalties are detailed in the excerpt but contract voidability and property acquisition bars are the primary enforcement levers.
No small business carve-out is specified: any vendor of a 'technological product or service' to a qualified entity is in scope regardless of size.
What Should You Do
Ask your legal and procurement teams to draft a standard 'foreign adversary affirmation' clause and subcontractor flow-down language now, so Indiana public sector bids are not delayed once the law takes effect.
If your company has foreign investors, parent entities, or supply chain partners in China, Russia, Iran, or North Korea, have counsel assess whether you could be classified as a 'prohibited person' under Indiana's definition and prepare documentation to rebut that presumption.
Universities and edtech vendors serving Indiana higher ed should coordinate with registrar and compliance offices to pull 10 years of foreign student enrollment data for 'qualifying programs' and build a repeatable annual reporting process.
Real estate, title, and lending businesses operating in Indiana should update KYC and buyer screening procedures to flag prohibited foreign individuals and entities before closing, and review pending agricultural land deals under the repealed prior statute.
Track HB1099's Senate progress and effective date (currently passed chamber, Sen. Maxwell added as cosponsor) and assign an internal owner to monitor final text for definitions of 'foreign adversary,' 'qualifying program,' and 'prohibited person.'
Who It Affects
Sponsors
Status Timeline
passed chamber
Senator Maxwell added as cosponsor
February 3, 2026