Industry Impact
AI legislation affecting Indiana government and public sector
Indiana state agencies, local governments, and their technology contractors face unique AI requirements. Bills in Congress and the Indiana General Assembly address facial recognition use by Indiana law enforcement, AI in public benefits decisions, procurement standards for AI systems, election technology, and critical infrastructure protection. GovTech vendors serving Indiana agencies must track both the bills regulating agencies and the compliance requirements that flow down to contractors through state purchasing agreements.
21
Bills Affecting Indiana Government
6
High Risk
Key Compliance Considerations
Facial recognition use by Indiana law enforcement faces proposed bans or strict warrant requirements in pending legislation
AI systems used in Indiana public benefits decisions require human review and appeal processes under proposed state and federal rules
Indiana government AI procurement may require bias testing and impact assessments before deployment under pending bills
Critical infrastructure AI protecting Indiana utilities, water systems, and transportation must meet proposed cybersecurity and resilience standards
AI Bills Affecting Indiana Government
HR 8037
Rep. Baumgartner (R-WA) introduced a bill requiring companies to disclose when they use AI systems trained on data from China, Russia, Iran, or North Korea. Companies would face fines up to $5 million for failing to tell customers about these foreign data sources in their AI products.
Last action: Mar 24, 2026
HR 7696
Rep. Jackson Lee introduced HR 7696 to protect critical infrastructure from AI-powered cyberattacks. The bill would require companies operating power grids, water systems, and other essential services to implement specific AI security measures and conduct regular vulnerability assessments. It creates new federal oversight of AI systems used in critical infrastructure with mandatory reporting of AI-related security incidents.
Last action: Feb 25, 2026
HR 6461
Representative Ted Lieu introduced the READ AI Models Act (HR 6461) to require companies developing powerful AI systems to run safety tests and share the results with the government. The bill specifically targets frontier AI models (think GPT-4 level and beyond) and would force developers to test for dangerous capabilities like cyberattacks, bioweapon design, or autonomous replication before release.
Last action: Dec 4, 2025
HR 4695
Representative Ted Lieu introduced HR 4695 to restrict how companies and government agencies use facial recognition technology. The bill would require businesses to get explicit consent before scanning faces, ban certain uses like emotion detection in hiring, and give people the right to opt out of facial recognition systems.
Last action: Jul 23, 2025
HB 1563
Indiana HB 1563 would regulate how businesses and government agencies can use facial recognition software. Representative sponsors are pushing this bill through the Roads and Transportation Committee (an unusual committee assignment that may signal focus on transportation-related uses). The bill would likely create new restrictions and requirements for any organization using facial recognition technology in Indiana.
Last action: Jan 19, 2023
SB 179
Indiana Senate Bill 179 requires election officials to implement cybersecurity measures for voting systems and creates mandatory incident reporting. The bill, now signed into law, establishes specific security protocols that election technology vendors and local election boards must follow, including annual security assessments and real-time breach notifications.
Last action: Mar 21, 2020
HR 8031
Representative Boebert introduced HR 8031 to repeal Biden's Executive Order on AI that established federal AI safety standards and oversight requirements. The bill would eliminate current federal AI governance frameworks, removing requirements for federal agencies to assess AI risks and for companies to report on their AI development activities.
Last action: Mar 20, 2026
S 4113
Senator Elissa Slotkin (D-MI) introduced the AI Guardrails Act to force federal agencies to set safety rules for AI systems before they can deploy them. The bill requires agencies to identify risks, establish testing procedures, and create ways to shut down AI systems that go wrong, with the Department of Defense and intelligence agencies mostly exempt.
Last action: Mar 17, 2026
S 4098
Senator Ted Budd (R-NC) introduced the Artificial Intelligence-Ready Data Act to create federal guidelines for how businesses prepare and manage data used in AI systems. The bill would establish new requirements for data quality, documentation, and transparency when companies use data to train or operate AI tools, affecting any business that develops or deploys AI systems.
Last action: Mar 16, 2026
S 2937
Senator Thom Tillis introduced the AI LEAD Act to regulate how federal agencies use AI systems. The bill requires agencies to tell Congress before buying or using AI, sets up testing requirements to catch problems before deployment, and creates new oversight rules with real penalties if agencies mess up their AI implementations.
Last action: Sep 29, 2025
HB 1238
Indiana HB 1238 would require law enforcement agencies to get approval from local government bodies before buying or using surveillance technology like facial recognition, license plate readers, or predictive policing AI. Representative [sponsor not listed] introduced this bill that would force police departments to publicly disclose what surveillance tech they use and how they use it, giving communities a chance to weigh in before deployment.
Last action: Jan 7, 2020
S 4216
Senator Brian Schatz (D-HI) introduced a bill to repeal President Biden's Executive Order on AI, which currently requires federal agencies to develop AI safety standards and companies to share AI safety test results with the government. This would eliminate federal AI oversight requirements that the Executive Order put in place.
Last action: Mar 26, 2026
SCONRES 30
This is a non-binding congressional resolution introduced by Senator Rick Scott (R-FL) that supports the 'Ratepayer Protection Pledge' announced March 4, 2026. It expresses Congress's view that electricity costs should be kept affordable as AI and data centers expand across the country. This resolution doesn't create any new laws or requirements; it's essentially Congress stating its opinion on energy policy related to AI growth.
Last action: Mar 25, 2026
S 4179
Senator Murkowski (R-AK) introduced a bill requiring states to involve tribal representatives when investigating child abuse cases involving Native American children. The bill mandates that state child protective services notify and coordinate with tribes within 24 hours when AI-powered risk assessment tools flag potential abuse cases involving Native children.
Last action: Mar 24, 2026
HR 7294
Rep. Robert Menendez (D-NJ) introduced the AI for Secure Networks Act to improve cybersecurity in critical infrastructure by using AI to detect and respond to threats. The bill would direct the Department of Homeland Security to develop AI tools for protecting power grids, water systems, and other essential services from cyber attacks.
Last action: Jan 30, 2026
HR 7058
Representative Jim Himes introduced HR 7058, which requires the State Department to create an office that evaluates AI risks from China, Russia, and other adversary nations. The bill doesn't regulate businesses directly but mandates government reports on foreign AI threats that could influence future regulations and federal AI procurement decisions.
Last action: Jan 14, 2026
HR 6996
The Full AI Stack Export Promotion Act (HR 6996) aims to boost US exports of AI technologies by streamlining export controls and creating new government programs to help American AI companies sell internationally. While the full text isn't available yet, the title suggests it covers the entire AI technology chain from chips to software, likely reducing barriers that currently make it hard for US companies to export AI products.
Last action: Jan 9, 2026
S 3586
Senator Todd Young (R-IN) introduced a bill to create a voluntary AI certification program specifically for small businesses. The bill would establish an 'AI Center of Excellence' at the Small Business Administration that helps small companies adopt AI responsibly through training, resources, and a certification process that could give them advantages in federal contracting.
Last action: Jan 7, 2026
HR 6875
Representatives McCaul and Krishnamoorthi introduced the AI OVERWATCH Act to monitor how foreign adversaries (specifically China, Russia, Iran, and North Korea) use AI for military purposes. The bill requires the State Department to create annual reports tracking these countries' AI capabilities and recommend ways to counter them. This focuses on national security rather than regulating domestic businesses.
Last action: Dec 18, 2025
S 1290
Senator Gary Peters (D-MI) introduced a bill requiring the National Institute of Standards and Technology (NIST) to create a standardized framework for AI workforce roles and skills. The bill would establish official job titles, required competencies, and career pathways for AI professionals across government and industry, similar to existing frameworks for cybersecurity roles.
Last action: Apr 3, 2025
HB 1296
Indiana HB 1296 would require state agencies to create inventories of all AI systems they use and develop policies for responsible AI deployment. The bill mandates transparency about how government uses AI but doesn't directly regulate private businesses.
Last action: Jan 13, 2025
Frequently Asked Questions
What AI laws affect Indiana government agencies?
Indiana government agencies face AI regulation on facial recognition, automated public benefits decisions, AI procurement standards, and election technology. Federal executive orders and pending legislation require impact assessments before deploying AI in government services. Indiana state bills address automated decision-making in benefits administration and law enforcement. GovTech vendors must also comply with these requirements through their contracts.
Can Indiana law enforcement use facial recognition?
Multiple bills at both the federal and state level propose restrictions on government facial recognition use. Some would require warrants, others impose outright moratoriums. Indiana law enforcement agencies should track these proposals closely and establish policies for any current facial recognition use, including accuracy testing, bias auditing, and usage logging.
What AI procurement requirements affect Indiana government?
Pending federal legislation would require government agencies to conduct algorithmic impact assessments before purchasing AI systems, test for bias against protected classes, and maintain human oversight on consequential decisions. Indiana agencies and their technology vendors should prepare documentation covering AI system capabilities, training data sources, accuracy metrics, and bias testing results to meet upcoming procurement requirements.
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