HB 1268

           Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
    HOUSE ENROLLED ACT No. 1268
  AN ACT to amend the Indiana Code concerning state offices and
administration.
    Be it enacted by the General Assembly of the State of Indiana:
   SECTION 1. IC 4-3-21.5-4, AS AMENDED BY P.L.74-2020,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4. (a) The task force consists of the following
voting members:
     (1) The lieutenant governor or the lieutenant governor's designee.
     (2) The secretary of commerce or the secretary of commerce's
     designee.
     (3) The following members chosen by the military assets in their
     geographic areas:
        (A) One (1) member representing the Southern Indiana
        Defense Network.
        (B) One (1) member representing Radius Indiana.
        (C) One (1) member representing greater Fort Wayne, Indiana.
        (D) One (1) member representing the Defense Finance and
        Accounting Service, Lawrence, Indiana.
        (E) One (1) member representing the Grissom Regional
        Defense Alliance.
        (F) One (1) member representing the West Central Indiana
        Defense Network.
        (G) One (1) member representing the Michigan City Coast
        Guard Station.
     (4) One (1) member appointed by the president pro tempore
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      of the senate.
      (5) One (1) member appointed by the speaker of the house.
    (b) The task force shall also include the adjutant general of the
Indiana National Guard or the adjutant general's designee who
shall serve as a nonvoting member.
    SECTION 2. IC 4-3-21.5-6, AS ADDED BY P.L.228-2019,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6. The governor shall designate a member of the
task force to serve as chairperson of the task force. The chairperson
shall preside at all meetings but may vote only in order to decide
a tie vote.
    SECTION 3. IC 4-3-21.5-10, AS ADDED BY P.L.228-2019,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 10. The affirmative votes of a majority of the
voting members of the task force are required for the task force to take
action on any measure, including reports required under section 12 of
this chapter. The chairperson is only considered a voting member
for purposes of deciding a tie vote.
    SECTION 4. IC 5-28-6-12 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 12. (a) On or before May 1, 2026, and each
May 1 thereafter, the Indiana defense task force established by
IC 4-3-21.5 shall submit a report to the corporation's office of
defense development and the budget committee. The report shall
identify the Indiana defense task force's identified priorities for
expenditures for the state fiscal year beginning July 1 immediately
following the report and shall separately account for any
supplemental funding or appropriations received by the state that
is allocated for those priorities.
    (b) On or before August 1, 2027, and each August 1 thereafter,
the corporation's office of defense development shall submit a
report to the Indiana defense task force and the budget committee.
The report shall detail expenditures from amounts appropriated
to the corporation's office of defense development for priorities
identified by the Indiana defense task force for the state fiscal year
ending June 30 immediately preceding the report and shall
separately account for any supplemental funding or appropriations
received by the corporation that is allocated for those priorities.
    (c) Beginning with the 2026-2027 state fiscal year and each state
fiscal year thereafter, the corporation's office of defense
development shall consider and incorporate, to the extent
practicable, the Indiana defense task force's priorities for
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expenditures when formulating its annual budget.
   SECTION 5. IC 5-28-44 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
   Chapter 44. Unmanned Aircraft Systems Test Site
   Sec. 1. In enacting this chapter, it is the intent of the general
assembly to advance the state's leadership position in technologies
related to unmanned aircraft systems to foster more opportunities
for citizens of the state with respect to unmanned aircraft system
technology and related industries and to support the federal
government in research, development, and testing in support of
commerce and national security. The general assembly finds the
following:
     (1) The FAA announced on January 8, 2026, that Indiana is
     designated as a test site for UAS.
     (2) The FAA notes that test sites help the United States assess
     emerging technologies to modernize methods for cargo
     delivery, Beyond Visual Line of Sight operations, and multiple
     UAS operations while informing safety and security, ushering
     in the safe commercialization of UAS technologies and fully
     integrating UAS into the national airspace system.
     (3) Indiana's designation as a test site was the result of a
     competitive process against other states and a joint
     application between the corporation and the operating
     partner. The proposal was developed under a contract
     between the corporation and the operating partner to pursue
     similar federal programs.
     (4) The FAA test site will require substantial reporting and
     compliance activities to comply with federal laws and
     regulations governing the federal UAS Test Site Program and
     ancillary activities and is desirable for efficiency, clarity, and
     transparency to avoid duplicating regulatory schemes at the
     federal and state levels.
   Sec. 2. As used in this chapter, "FAA" means the Federal
Aviation Administration.
   Sec. 3. As used in this chapter, "operating partner" means the
Indiana based nonprofit corporation that partners with the
corporation to operate and maintain the UAS test site under
supervision of the corporation.
   Sec. 4. As used in this chapter, "test site" means the Indiana
UAS test site awarded to the corporation by the FAA.
   Sec. 5. As used in this chapter, "UAS" means an unmanned
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aircraft system, including counter UAS and other related entities.
    Sec. 6. Subject to budget committee review, during the period
that the test site remains subject to federal requirements as part of
the UAS Test Site Program operated by the FAA, the corporation
and operating partner are not subject to any state law concerning
the following for purposes of operating the test site:
      (1) State procurement requirements.
      (2) State contracting requirements.
      (3) State fee setting requirements.
    Sec. 7. (a) The operating partner shall establish a bank account
that is separate and segregated from any other bank account under
the operating partner's control and administer all funds for the test
site in the bank account.
    (b) The operating partner may administer and deposit all
income, earnings, and other receipts accrued through operation of
the test site in the bank account, including any state or federal
funding received through a contract, or as a grant or loan.
    (c) The operating partner may expend money from the bank
account for operations of the test site, including costs for
administration, staffing, equipment, test site activities,
communications, and marketing. The operating partner may
transfer revenue from the bank account to the corporation or any
other state agency to be used for the following purposes:
      (1) To procure UAS technology for use by the state.
      (2) To pursue federal funding for activities related to UAS
      that benefit the state.
      (3) To support economic development activities related to
      UAS research or manufacturing.
    (d) The operating partner shall keep a full and complete record
of funds received and disbursed by the operating partner. The
report is subject to audit and must be submitted to the corporation
board not later than July 1 of each year, or more often as required
by the corporation.
    Sec. 8. The state examiner, or deputy examiners, field
examiners, or private examiners, shall make a full and complete
report of the records and receipts of the test site.
    Sec. 9. The operating partner shall do the following:
      (1) Respond to requests from local, regional, or state
      economic development organizations for assistance with
      economic activities intended to attract companies, or to
      develop clusters of activity, within the UAS sector.
      (2) Respond to requests from state agencies for expertise
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      related to the procurement of UAS technology.
      (3) Respond to requests from state agencies for assistance
      with the development of new UAS test activities within
      particular economic sectors.
   Sec. 10. The operating partner is responsible for carrying out
the FAA's requirements and obligations for the safe operation and
maintenance of the test site and for managing the day to day
operations of the test site under supervision of the corporation.
   Sec. 11. (a) Notwithstanding any other law, the corporation may
enter into an agreement with the operating partner to fulfill the
requirements of this chapter and any other applicable requirement
from the FAA or another federal agency.
   (b) The corporation may dedicate resources as determined
necessary and appropriate by the corporation to support the
implementation and ongoing operation of the test site, including
staff support, administrative support, and direct financial support.
   Sec. 12. Not later than December 1, 2026, and, beginning after
December 31, 2026, not later than June 1 and December 1 of each
calendar year, the operating partner and the corporation shall
submit a written report for review to the Indiana defense task
force and the budget committee concerning the following:
      (1) An itemization of each of the expenditures of money from
      the bank account established under section 7 of this chapter
      since the last report to the budget committee and Indiana
      defense task force.
      (2) Anticipated expenditures for the subsequent six (6)
      months.
      (3) Funding sources for expenditures.
      (4) Any other information requested by the budget committee
      or the Indiana defense task force.
   SECTION 6. An emergency is declared for this act.
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Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
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