SB0256
Foreign agent registration, foreign terrorist organizations, and foreign adversaries.
TL;DR
Indiana's SB0256, signed into law as Public Law 131, requires state contractors providing technology products or services to certify that neither they nor their subcontractors are 'prohibited persons' tied to foreign adversaries (think China, Russia, Iran, North Korea). It also restricts foreign land purchases, mandates foreign student reporting at universities, and voids government contracts with prohibited entities. Sponsored by Sen. Chris Garten and a large Republican coalition.
How This Might Impact Your Business
Technology vendors selling to Indiana state or local government must now include contract language certifying they and all subcontractors are not 'prohibited persons' connected to foreign adversary countries.
Companies with any ownership, investment, or control ties to China, Russia, Iran, or North Korea (or entities on federal restricted lists) risk losing eligibility for Indiana government contracts entirely.
AI, cloud, cybersecurity, and software vendors face heightened scrutiny since 'technological product or service' contracts trigger the certification requirement on every new, renewed, or amended deal.
Universities and colleges in Indiana must track and report foreign student enrollment in 'qualifying programs' (likely STEM/sensitive research) for the past 10 years, affecting research partnerships and industry-sponsored programs.
Real estate acquisitions by covered foreign persons and entities are now prohibited, impacting agricultural, commercial, and industrial land deals involving foreign capital.
Existing agreements between Indiana government units and prohibited persons are now void and unenforceable, meaning ongoing contracts could be terminated without recourse.
Persons acting on behalf of hostile foreign countries must register with the Indiana Attorney General, creating a state-level FARA-style regime with its own compliance obligations.
What Should You Do
Have your legal and procurement teams review all current and pending Indiana government contracts for the new 'prohibited person' certification language and confirm your supply chain (including subcontractors and software components) is clear.
Audit your ownership structure, investors, and key vendors for any ties to countries or entities on federal foreign adversary lists; document this now so you can certify quickly when contracts come up for renewal.
If you partner with Indiana universities on research or workforce programs, ask your academic contacts how the new foreign student reporting requirements may affect timelines or access.
Check any Indiana real estate holdings or planned acquisitions against the new foreign ownership prohibitions before closing deals.
Assign someone to track the Attorney General's forthcoming registration rules for foreign agents to determine if any of your consultants, lobbyists, or advisors trigger filing obligations.
Who It Affects
Sponsors
Status Timeline
enacted
Public Law 131
March 5, 2026