HB 1289

                                                            Introduced Version
           HOUSE BILL No. 1289
                 _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 2-5-1.3-13; IC 4-3-17; IC 4-23-7.2-21;
IC 6-1.1; IC 6-3.1-26; IC 9-17-5-6; IC 14-8-2; IC 14-20-11;
IC 20-29-6-4.1; IC 20-32-8.5-2; IC 33-33-40-1; IC 36-7-30.2.
Synopsis: State and local administration. Repeals the Hoosier alliance
against drugs, the advisory committee on the oral history of the general
assembly, and the Wendell L. Willkie memorial commission. Removes
expired provisions located within Indiana Code sections. Limits
collective bargaining with school bus drivers to the subjects allowed in
collective bargaining with teachers. Provides that the prohibited
subjects of collective bargaining with teachers apply to collective
bargaining with school bus drivers. Makes conforming changes and
technical corrections.
Effective: Upon passage; January 1, 2026 (retroactive); July 1, 2026.
                              Prescott
   January 6, 2026, read first time and referred to Committee on Education.
2026  IN 1289—LS 6754/DI 92
                                                                                       Introduced
            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 BILL No. 1289
    A BILL FOR AN ACT to amend the Indiana Code concerning state
 and local administration.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 2-5-1.3-13, AS AMENDED BY P.L.186-2025,
2 SECTION 270, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2026]: Sec. 13. (a) A study committee shall
4 study the issues assigned by the legislative council that are within the
5 subject matter for the study committee, as described in section 4 of this
6 chapter.
7    (b) In addition to the issues assigned under subsection (a), the
8 interim study committee on roads and transportation shall advise the
9 bureau of motor vehicles regarding the suitability of a special group (as
10 defined in IC 9-13-2-170) to receive a special group recognition license
11 plate for the special group (as defined in IC 9-13-2-170) for the first
12 time under IC 9-18.5-12-4 and the suitability of a special group (as
13 defined in IC 9-13-2-170) to continue participating in the special group
14 recognition license plate program under IC 9-18.5-12-5.
15    (c) In addition to the issues assigned under subsection (a), the
16 interim study committee on corrections and criminal code shall review
17 current trends with respect to criminal behavior, sentencing,
 2026  IN 1289—LS 6754/DI 92
                                     2
1 incarceration, and treatment and may:
2(1) identify particular needs of the criminal justice system that can
3be addressed by legislation; and
4(2) prepare legislation to address the particular needs found by the
5committee.
6    (d) In each even-numbered year, in addition to the issues assigned
7 under subsection (a), the interim study committee on courts and the
8 judiciary shall review, consider, and make recommendations
9 concerning all requests for new courts, new judicial officers, and
10 changes in jurisdiction of existing courts. A request under this
11 subsection must include at least the following information to receive
12 full consideration by the committee:
13(1) The level of community support for the change, including
14support from the local fiscal body.
15(2) The results of a survey that shall be conducted by the county
16requesting the change, sampling members of the bar, members of
17the judiciary, and local officials to determine needs and concerns
18of existing courts.
19(3) Whether the county is already using a judge or magistrate
20from an overserved area of the judicial district.
21(4) The relative severity of need based on the most recent
22weighted caseload measurement system report published by the
23office of judicial administration.
24(5) Whether the county is using any problem solving court as
25described in IC 33-23-16-11, and, if so, the list of problem solving
26courts established in the county, and any evaluation of the impact
27of the problem solving courts on the overall judicial caseload.
28(6) A description of the:
29(A) county's population growth in the ten (10) years before the
30date of the request; and
31(B) projected population growth in the county for the ten (10)
32years after the date of the request, to the extent available;
33and any documentation to support the information provided under
34this subdivision.
35(7) A description of the county's use of pre-incarceration
36diversion services and post-incarceration reentry services in an
37effort to decrease recidivism.
38(8) If the request is a request for a new court or new courts, an
39acknowledgment from the county fiscal body (as defined in
40IC 36-1-2-6) with the funding sources and estimated costs the
41county intends to pay toward the county's part of the operating
42costs associated with the new court or new courts.
 2026  IN 1289—LS 6754/DI 92
                                    3
1 The office of judicial administration shall post the list of required
2 information provided under this subsection on its website.
3    (e) In each even-numbered year, in addition to the issues assigned
4 under subsection (a), the interim study committee on courts and the
5 judiciary shall review the most recent weighted caseload measurement
6 system report published by the office of judicial administration and do
7 the following:
8(1) Identify each county in which the number of courts or judicial
9officers exceeds the number used by the county in that report
10year.
11(2) Determine the number of previous report years in which the
12number of courts or judicial officers in a county identified in
13subdivision (1) exceeded the number used by the county in that
14particular report year.
15(3) Make a recommendation on whether the number of courts or
16judicial officers in the county should be decreased.
17 The office of judicial administration shall post a list of the number of
18 courts or judicial officers used in each county for each report year, and
19 the number of years in which the number of courts or judicial officers
20 in the county has exceeded the number used by the county, on its
21 website.
22    (f) In addition to studying the issues assigned under subsection (a),
23 the interim study committee on child services shall:
24(1) review the annual reports submitted by:
25(A) each local child fatality review team under IC 16-49-3-7;
26(B) the statewide child fatality review committee under
27IC 16-49-4-11; and
28(C) the department of child services under IC 31-25-2-24;
29during the immediately preceding twelve (12) month period, and
30may make recommendations regarding changes in policies or
31statutes to improve child safety; and
32(2) report to the legislative council before November 1 of each
33interim, in an electronic format under IC 5-14-6, the results of:
34(A) the committee's review under subdivision (1); and
35(B) the committee's study of any issue assigned to the
36committee under subsection (a).
37    (g) In each even-numbered year, in addition to the issues assigned
38 under subsection (a), the interim study committee on government shall
39 do the following:
40(1) Determine whether a group has met in the immediately
41preceding two (2) years.
42(2) Review reports submitted to the committee in accordance with
 2026  IN 1289—LS 6754/DI 92
                                     4
1IC 1-1-15.5-4.
2(3) Identify all interstate compacts that have been fully
3operational for at least two (2) years to which the state is a party.
4(4) Consider whether to:
5(A) remain a party to; or
6(B) withdraw from;
7each interstate compact.
8(5) If the committee determines that the state should withdraw
9from an interstate compact, identify the steps needed to withdraw.
10(6) Report before November 1 to the legislative council, in an
11electronic format under IC 5-14-6, the committee's:
12(A) recommendations for proposed legislation to repeal
13groups:
14(i) that have not met during the immediately preceding two
15(2) years; and or
16(ii) that the committee finds should be repealed after
17reviewing a the group's report under subdivision (2); and
18(B) findings and recommendations regarding the interstate
19compacts.
20 As used in this subsection, "group" refers to an authority, a board, a
21 commission, a committee, a council, a delegate, a foundation, a panel,
22 or a task force that is established by statute, has at least one (1)
23 legislator assigned to it, and is not staffed by the legislative services
24 agency.
25    (h) In 2026 and 2027, in addition to the issues assigned under
26 subsections (a) and (f), the interim study committee on child services
27 shall review the report submitted by the child welfare task force under
28 IC 2-5-55.7-8. This subsection expires December 31, 2027.
29    SECTION 2. IC 4-3-17 IS REPEALED [EFFECTIVE JULY 1,
30 2026]. (Hoosier Alliance Against Drugs).
31    SECTION 3. IC 4-23-7.2-21 IS REPEALED [EFFECTIVE JULY
32 1, 2026]. Sec. 21. (a) An advisory committee is established to advise
33 the historical bureau in establishing an oral history of the general
34 assembly under section 20 of this chapter. The committee consists of
35 the following eight (8) members:
36(1) One (1) member of the general assembly appointed by the
37speaker of the house of representatives.
38(2) One (1) member of the general assembly appointed by the
39minority leader of the house of representatives.
40(3) One (1) member of the general assembly appointed by the
41president pro tempore of the senate.
42(4) One (1) member of the general assembly appointed by the
 2026  IN 1289—LS 6754/DI 92
                                     5
1minority leader of the senate.
2(5) Four (4) members appointed by the governor as follows:
3(A) One (1) member nominated by the Indiana library and
4historical board.
5(B) One (1) member nominated by the Indiana Historical
6Society.
7(C) One (1) member nominated by the Center for the Study of
8History and Memory at Indiana University.
9(D) One (1) member nominated by the board of trustees of The
10History Museum in South Bend.
11    (b) The following apply to the governor's appointments under
12 subsection (a)(5):
13(1) Not more than two (2) members appointed by the governor
14may be members of the same political party.
15(2) The appointments must be made so that the northern, central,
16and southern regions of Indiana are represented on the committee.
17    (c) Members of the committee serve at the pleasure of the
18 appointing authority. If a vacancy occurs on the committee, the
19 appointing authority that appointed the member whose position is
20 vacant shall appoint an individual to fill the vacancy. An individual
21 appointed to fill a vacancy must have the qualifications that a member
22 appointed by the appointing authority must have.
23    (d) The:
24(1) chairman of the legislative council, with the advice of the
25vice-chairman, shall designate the chair; and
26(2) vice-chairman of the legislative council, with the advice of the
27chairman, shall designate a vice-chair;
28 of the committee from among the legislative members of the
29 committee. The chair and vice-chair of the committee serve at the
30 pleasure of the appointing authority.
31    (e) Each member of the committee is entitled to receive the same
32 per diem, mileage, and travel allowances paid to individuals who serve
33 as legislative and lay members, respectively, of interim study
34 committees established by the legislative council.
35    (f) The historical bureau shall provide staff support to the
36 committee.
37    (g) Expenses incurred by the committee to carry out its functions
38 must be paid from appropriations to the Indiana library and historical
39 board.
40    (h) On or before July 1, 2027, and July 1 biennially thereafter, the
41 committee shall submit a report to the executive director of the
42 legislative services agency, in an electronic format under IC 5-14-6, for
 2026  IN 1289—LS 6754/DI 92
                                    6
1 review by the interim committee on government in accordance with
2 IC 1-1-15.5-4 and IC 2-5-1.3-13(g). The report shall describe:
3      (1) official action taken; and
4      (2) actionable items considered;
5 by the committee during the preceding two (2) years.
6     SECTION 4. IC 6-1.1-20-1.1, AS AMENDED BY P.L.68-2025,
7 SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2026]: Sec. 1.1. (a) As used in this chapter, "controlled
9 project" means any project financed by bonds or a lease, except for the
10 following:
11      (1) A project for which the political subdivision reasonably
12      expects to pay:
13(A) debt service; or
14(B) lease rentals;
15      from funds other than property taxes that are exempt from the
16      levy limitations of IC 6-1.1-18.5 or (before January 1, 2009)
17      IC 20-45-3. A project is not a controlled project even though the
18      political subdivision has pledged to levy property taxes to pay the
19      debt service or lease rentals if those other funds are insufficient.
20      (2) Subject to subsection (b), A project that will not cost the
21      political subdivision more than the lesser of the following:
22(A) An amount equal to the following:
23(i) In the case of an ordinance or resolution adopted before
24January 1, 2018, making a preliminary determination to
25issue bonds or enter into a lease for the project, two million
26dollars ($2,000,000).
27(ii) In the case of an ordinance or resolution adopted after
28December 31, 2017, and before January 1, 2019, making a
29preliminary determination to issue bonds or enter into a
30lease for the project, five million dollars ($5,000,000).
31(iii) In the case of an ordinance or resolution adopted in a
32calendar year after December 31, 2018, making a
33preliminary determination to issue bonds or enter into a
34lease for the project, an amount (as determined by the
35department of local government finance) equal to the result
36of the maximum levy growth quotient determined under
37IC 6-1.1-18.5-2 for the year multiplied by the amount
38determined under this clause for the preceding calendar
39year.
40The department of local government finance shall publish the
41threshold determined under item (iii) in the Indiana Register
42under IC 4-22-7-7 not more than sixty (60) days after the date
 2026  IN 1289—LS 6754/DI 92
                                      7
1the budget agency releases the maximum levy growth quotient
2for the ensuing year under IC 6-1.1-18.5-2.
3(B) An amount equal to the following:
4(i) One percent (1%) of the total gross assessed value of
5property within the political subdivision on the last
6assessment date, if that total gross assessed value is more
7than one hundred million dollars ($100,000,000).
8(ii) One million dollars ($1,000,000), if the total gross
9assessed value of property within the political subdivision
10on the last assessment date is not more than one hundred
11million dollars ($100,000,000).
12(3) A project that is being refinanced for the purpose of providing
13gross or net present value savings to taxpayers.
14(4) A project for which bonds were issued or leases were entered
15into before January 1, 1996, or where the state board of tax
16commissioners has approved the issuance of bonds or the
17execution of leases before January 1, 1996.
18(5) A project that:
19(A) is required by a court order holding that a federal law
20mandates the project; or
21(B) is in response to a court order holding that:
22(i) a federal law has been violated; and
23(ii) the project is to address the deficiency or violation.
24(6) A project that is in response to:
25(A) a natural disaster;
26(B) an accident; or
27(C) an emergency;
28in the political subdivision that makes a building or facility
29unavailable for its intended use.
30(7) A project that was not a controlled project under this section
31as in effect on June 30, 2008, and for which:
32(A) the bonds or lease for the project were issued or entered
33into before July 1, 2008; or
34(B) the issuance of the bonds or the execution of the lease for
35the project was approved by the department of local
36government finance before July 1, 2008.
37(8) A project of the Little Calumet River basin development
38commission for which bonds are payable from special
39assessments collected under IC 14-13-2-18.6.
40(9) A project for engineering, land and right-of-way acquisition,
41construction, resurfacing, maintenance, restoration, and
42rehabilitation exclusively for or of:
 2026  IN 1289—LS 6754/DI 92
                                     8
1(A) local road and street systems, including bridges that are
2designated as being in a local road and street system;
3(B) arterial road and street systems, including bridges that are
4designated as being in an arterial road and street system; or
5(C) any combination of local and arterial road and street
6systems, including designated bridges.
7    (b) This subsection does not apply to a project for which a public
8 hearing to issue bonds or enter into a lease has been conducted under
9 IC 20-26-7-37 before July 1, 2023, or to a project for which an
10 ordinance or resolution making a preliminary determination to issue
11 bonds or enter into a lease is adopted after June 30, 2025. If:
12      (1) a political subdivision's total debt service tax rate is more than
13      forty cents ($0.40) per one hundred dollars ($100) of assessed
14      value; and
15      (2) subsection (a)(1) and subsection (a)(3) through (a)(9) are not
16      applicable;
17 the term includes any project to be financed by bonds or a lease,
18 including a project that does not otherwise meet the threshold amount
19 provided in subsection (a)(2). This subsection expires December 31,
20 2025. For purposes of this subsection, a political subdivision's total
21 debt service tax rate does not include a tax rate imposed in a
22 referendum debt service tax levy approved by voters.
23    (c) (b) This subsection applies to a project for which an ordinance
24 or resolution making a preliminary determination to issue bonds or
25 enter into a lease is adopted after June 30, 2025. If subsection (a)(1)
26 and subsection (a)(3) through (a)(9) are not applicable, the term
27 includes any project to be financed by bonds or a lease, including a
28 project that does not otherwise meet the threshold amount provided in
29 subsection (a)(2), if:
30      (1) in the case of a school corporation, the school corporation's
31      total debt service tax rate is more than forty cents ($0.40) per one
32      hundred dollars ($100) of assessed value;
33      (2) in the case of a city, county, or town, the city's, county's, or
34      town's total debt service tax rate is more than twenty-five cents
35      ($0.25) per one hundred dollars ($100) of assessed value; or
36      (3) in the case of a political subdivision not described in
37      subdivision (1) or (2), the political subdivision's total debt service
38      tax rate is more than five cents ($0.05) per one hundred dollars
39      ($100) of assessed value.
40 However, this subsection does not apply to a project for which a public
41 hearing to issue bonds or enter into a lease has been conducted under
42 IC 20-26-7-37 before July 1, 2025. For purposes of this subsection, a
 2026  IN 1289—LS 6754/DI 92
                                      9
1 political subdivision's total debt service tax rate does not include a tax
2 rate imposed in a referendum debt service tax levy approved by voters.
3    SECTION 5. IC 6-1.1-20-3.1, AS AMENDED BY P.L.68-2025,
4 SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2026]: Sec. 3.1. (a) Subject to section 3.5(a)(1)(C) of this
6 chapter, this section applies only to the following:
7(1) A controlled project (as defined in section 1.1 of this chapter
8as in effect June 30, 2008) for which the proper officers of a
9political subdivision make a preliminary determination in the
10manner described in subsection (b) before July 1, 2008.
11(2) An elementary school building, middle school building, high
12school building, or other school building for academic instruction
13that:
14(A) is a controlled project;
15(B) will be used for any combination of kindergarten through
16grade 12; and
17(C) will not cost more than the lesser of the following:
18(i) The threshold amount determined under this item. In the
19case of an ordinance or resolution adopted before January 1,
202018, making a preliminary determination to issue bonds or
21enter into a lease for the project, the threshold amount is ten
22million dollars ($10,000,000). In the case of an ordinance or
23resolution adopted after December 31, 2017, and before
24January 1, 2019, making a preliminary determination to
25issue bonds or enter into a lease for the project, the threshold
26amount is fifteen million dollars ($15,000,000). In the case
27of an ordinance or resolution adopted in a calendar year after
28December 31, 2018, making a preliminary determination to
29issue bonds or enter into a lease for the project, the threshold
30amount is an amount (as determined by the department of
31local government finance) equal to the result of the
32maximum levy growth quotient determined under
33IC 6-1.1-18.5-2 for the year multiplied by the threshold
34amount determined under this item for the preceding
35calendar year. In the case of a threshold amount determined
36under this item that applies for a calendar year after
37December 31, 2018, the department of local government
38finance shall publish the threshold in the Indiana Register
39under IC 4-22-7-7 not more than sixty (60) days after the
40date the budget agency releases the maximum levy growth
41quotient for the ensuing year under IC 6-1.1-18.5-2.
42(ii) An amount equal to one percent (1%) of the total gross
 2026  IN 1289—LS 6754/DI 92
                                     10
1assessed value of property within the political subdivision
2on the last assessment date, if that total gross assessed value
3is more than one billion dollars ($1,000,000,000), or ten
4million dollars ($10,000,000), if the total gross assessed
5value of property within the political subdivision on the last
6assessment date is not more than one billion dollars
7($1,000,000,000).
8(3) Any other controlled project that:
9(A) is not a controlled project described in subdivision (1) or
10(2); and
11(B) will not cost the political subdivision more than the lesser
12of the following:
13(i) The threshold amount determined under this item. In the
14case of an ordinance or resolution adopted before January 1,
152018, making a preliminary determination to issue bonds or
16enter into a lease for the project, the threshold amount is
17twelve million dollars ($12,000,000). In the case of an
18ordinance or resolution adopted after December 31, 2017,
19and before January 1, 2019, making a preliminary
20determination to issue bonds or enter into a lease for the
21project, the threshold amount is fifteen million dollars
22($15,000,000). In the case of an ordinance or resolution
23adopted in a calendar year after December 31, 2018, making
24a preliminary determination to issue bonds or enter into a
25lease for the project, the threshold amount is an amount (as
26determined by the department of local government finance)
27equal to the result of the maximum levy growth quotient
28determined under IC 6-1.1-18.5-2 for the year multiplied by
29the threshold amount determined under this item for the
30preceding calendar year. In the case of a threshold amount
31determined under this item that applies for a calendar year
32after December 31, 2018, the department of local
33government finance shall publish the threshold in the
34Indiana Register under IC 4-22-7-7 not more than sixty (60)
35days after the date the budget agency releases the maximum
36levy growth quotient for the ensuing year under
37IC 6-1.1-18.5-2.
38(ii) An amount equal to one percent (1%) of the total gross
39assessed value of property within the political subdivision
40on the last assessment date, if that total gross assessed value
41is more than one hundred million dollars ($100,000,000), or
42one million dollars ($1,000,000), if the total gross assessed
 2026  IN 1289—LS 6754/DI 92
                                       11
1value of property within the political subdivision on the last
2assessment date is not more than one hundred million
3dollars ($100,000,000).
4(4) A controlled project funded by debt service if the scope of the
5project changes from the purpose of the project initially
6advertised to taxpayers as determined under section 4.2(c) of this
7chapter.
8(5) This subdivision does not apply to a project for which a public
9hearing to issue bonds or enter into a lease has been conducted
10under IC 20-26-7-37 before July 1, 2023, or to a project for which
11an ordinance or resolution making a preliminary determination to
12issue bonds or enter into a lease is adopted after June 30, 2025.
13Any other controlled project if both of the following apply:
14(A) The political subdivision's total debt service tax rate is
15more than forty cents ($0.40) per one hundred dollars ($100)
16of assessed value, but less than eighty cents ($0.80) per one
17hundred dollars ($100) of assessed value.
18(B) The controlled project is not otherwise described in section
193.5(a)(1) of this chapter.
20This subdivision expires December 31, 2025. For purposes of this
21subdivision, a political subdivision's total debt service tax rate
22does not include a tax rate imposed in a referendum debt service
23levy approved by voters.
24(6) (5) Any other controlled project if the following apply:
25(A) An ordinance or resolution making a preliminary
26determination to issue bonds or enter into a lease for the
27project is adopted after June 30, 2025.
28(B) The controlled project is not otherwise described in section
293.5(a)(1) of this chapter.
30(C) In the case of a:
31(i) school corporation, the school corporation's total debt
32service tax rate is more than forty cents ($0.40) per one
33hundred dollars ($100) of assessed value, but not more than
34seventy cents ($0.70) per one hundred dollars ($100) of
35assessed value;
36(ii) city, county, or town, the city's, county's, or town's total
37debt service tax rate is more than twenty-five cents ($0.25)
38per one hundred dollars ($100) of assessed value, but not
39more than forty cents ($0.40) per one hundred dollars ($100)
40of assessed value; or
41(iii) political subdivision not described in item (i) or (ii), the
42political subdivision's total debt service tax rate is more than
 2026  IN 1289—LS 6754/DI 92
                                    12
1five cents ($0.05) per one hundred dollars ($100) of
2assessed value, but not more than ten cents ($0.10) per one
3hundred dollars ($100) of assessed value.
4      However, this subdivision does not apply to a project for which a
5      public hearing to issue bonds or enter into a lease has been
6      conducted under IC 20-26-7-37 before July 1, 2025. For purposes
7      of this subdivision, a political subdivision's total debt service tax
8      rate does not include a tax rate imposed in a referendum debt
9      service tax levy approved by voters.
10    (b) A political subdivision may not impose property taxes to pay
11 debt service on bonds or lease rentals on a lease for a controlled project
12 without completing the following procedures:
13      (1) The proper officers of a political subdivision shall publish
14      notice in accordance with IC 5-3-1 and send notice by first class
15      mail to the circuit court clerk and to any organization that delivers
16      to the officers, before January 1 of that year, an annual written
17      request for such notices of any meeting to consider adoption of a
18      resolution or an ordinance making a preliminary determination to
19      issue bonds or enter into a lease and shall conduct at least two (2)
20      public hearings on a preliminary determination before adoption
21      of the resolution or ordinance. The political subdivision must at
22      each of the public hearings on the preliminary determination
23      allow the public to testify regarding the preliminary determination
24      and must make the following information available to the public
25      at each of the public hearings on the preliminary determination,
26      in addition to any other information required by law:
27(A) The result of the political subdivision's current and
28projected annual debt service payments divided by the net
29assessed value of taxable property within the political
30subdivision.
31(B) The result of:
32(i) the sum of the political subdivision's outstanding long
33term debt plus the outstanding long term debt of other taxing
34units that include any of the territory of the political
35subdivision; divided by
36(ii) the net assessed value of taxable property within the
37political subdivision.
38(C) The information specified in subdivision (3)(A) through
39(3)(H).
40      (2) When the proper officers of a political subdivision make a
41      preliminary determination to issue bonds or enter into a lease for
42      a controlled project, the officers shall give notice of the
 2026  IN 1289—LS 6754/DI 92
                                      13
1preliminary determination by:
2(A) publication in accordance with IC 5-3-1; and
3(B) first class mail to the circuit court clerk and to the
4organizations described in subdivision (1).
5(3) A notice under subdivision (2) of the preliminary
6determination of the political subdivision to issue bonds or enter
7into a lease for a controlled project must include the following
8information:
9(A) The maximum term of the bonds or lease.
10(B) The maximum principal amount of the bonds or the
11maximum lease rental for the lease.
12(C) The estimated interest rates that will be paid and the total
13interest costs associated with the bonds or lease.
14(D) The purpose of the bonds or lease.
15(E) A statement that any owners of property within the
16political subdivision or registered voters residing within the
17political subdivision who want to initiate a petition and
18remonstrance process against the proposed debt service or
19lease payments must file a petition that complies with
20subdivisions (4) and (5) not later than thirty (30) days after
21publication in accordance with IC 5-3-1.
22(F) With respect to bonds issued or a lease entered into to
23open:
24(i) a new school facility; or
25(ii) an existing facility that has not been used for at least
26three (3) years and that is being reopened to provide
27additional classroom space;
28the estimated costs the school corporation expects to incur
29annually to operate the facility.
30(G) A statement of whether the school corporation expects to
31appeal for a new facility adjustment (as defined in
32IC 20-45-1-16 (repealed) before January 1, 2009) for an
33increased maximum permissible tuition support levy to pay the
34estimated costs described in clause (F).
35(H) The following information:
36(i) The political subdivision's current debt service levy and
37rate.
38(ii) The estimated increase to the political subdivision's debt
39service levy and rate that will result if the political
40subdivision issues the bonds or enters into the lease.
41(iii) The estimated amount of the political subdivision's debt
42service levy and rate that will result during the following ten
 2026  IN 1289—LS 6754/DI 92
                                      14
1(10) years if the political subdivision issues the bonds or
2enters into the lease, after also considering any changes that
3will occur to the debt service levy and rate during that
4period on account of any outstanding bonds or lease
5obligations that will mature or terminate during that period.
6(I) The information specified in subdivision (1)(A) through
7(1)(B).
8(4) After notice is given, a petition requesting the application of
9a petition and remonstrance process may be filed by the lesser of:
10(A) five hundred (500) persons who are either owners of
11property within the political subdivision or registered voters
12residing within the political subdivision; or
13(B) five percent (5%) of the registered voters residing within
14the political subdivision.
15(5) The state board of accounts shall design and, upon request by
16the county voter registration office, deliver to the county voter
17registration office or the county voter registration office's
18designated printer the petition forms to be used solely in the
19petition process described in this section. The county voter
20registration office shall issue to an owner or owners of property
21within the political subdivision or a registered voter residing
22within the political subdivision the number of petition forms
23requested by the owner or owners or the registered voter. Each
24form must be accompanied by instructions detailing the
25requirements that:
26(A) the carrier and signers must be owners of property or
27registered voters;
28(B) the carrier must be a signatory on at least one (1) petition;
29(C) after the signatures have been collected, the carrier must
30swear or affirm before a notary public that the carrier
31witnessed each signature; and
32(D) govern the closing date for the petition period.
33Persons requesting forms may be required to identify themselves
34as owners of property or registered voters and may be allowed to
35pick up additional copies to distribute to other owners of property
36or registered voters. Each person signing a petition must indicate
37whether the person is signing the petition as a registered voter
38within the political subdivision or is signing the petition as the
39owner of property within the political subdivision. A person who
40signs a petition as a registered voter must indicate the address at
41which the person is registered to vote. A person who signs a
42petition as an owner of property must indicate the address of the
 2026  IN 1289—LS 6754/DI 92
                                     15
1property owned by the person in the political subdivision.
2(6) Each petition must be verified under oath by at least one (1)
3qualified petitioner in a manner prescribed by the state board of
4accounts before the petition is filed with the county voter
5registration office under subdivision (7).
6(7) Each petition must be filed with the county voter registration
7office not more than thirty (30) days after publication under
8subdivision (2) of the notice of the preliminary determination.
9(8) The county voter registration office shall determine whether
10each person who signed the petition is a registered voter.
11However, after the county voter registration office has determined
12that at least five hundred twenty-five (525) persons who signed
13the petition are registered voters within the political subdivision,
14the county voter registration office is not required to verify
15whether the remaining persons who signed the petition are
16registered voters. If the county voter registration office does not
17determine that at least five hundred twenty-five (525) persons
18who signed the petition are registered voters, the county voter
19registration office shall, not more than fifteen (15) business days
20after receiving a petition, forward a copy of the petition to the
21county auditor. Not more than ten (10) business days after
22receiving the copy of the petition, the county auditor shall provide
23to the county voter registration office a statement verifying:
24(A) whether a person who signed the petition as a registered
25voter but is not a registered voter, as determined by the county
26voter registration office, is the owner of property in the
27political subdivision; and
28(B) whether a person who signed the petition as an owner of
29property within the political subdivision does in fact own
30property within the political subdivision.
31(9) The county voter registration office, not more than ten (10)
32business days after determining that at least five hundred
33twenty-five (525) persons who signed the petition are registered
34voters or receiving the statement from the county auditor under
35subdivision (8), as applicable, shall make the final determination
36of the number of petitioners that are registered voters in the
37political subdivision and, based on the statement provided by the
38county auditor, the number of petitioners that own property within
39the political subdivision. Whenever the name of an individual
40who signs a petition form as a registered voter contains a minor
41variation from the name of the registered voter as set forth in the
42records of the county voter registration office, the signature is
 2026  IN 1289—LS 6754/DI 92
                                     16
1presumed to be valid, and there is a presumption that the
2individual is entitled to sign the petition under this section. Except
3as otherwise provided in this chapter, in determining whether an
4individual is a registered voter, the county voter registration office
5shall apply the requirements and procedures used under IC 3 to
6determine whether a person is a registered voter for purposes of
7voting in an election governed by IC 3. However, an individual is
8not required to comply with the provisions concerning providing
9proof of identification to be considered a registered voter for
10purposes of this chapter. A person is entitled to sign a petition
11only one (1) time in a particular petition and remonstrance
12process under this chapter, regardless of whether the person owns
13more than one (1) parcel of real property, mobile home assessed
14as personal property, or manufactured home assessed as personal
15property, or a combination of those types of property within the
16subdivision and regardless of whether the person is both a
17registered voter in the political subdivision and the owner of
18property within the political subdivision. Notwithstanding any
19other provision of this section, if a petition is presented to the
20county voter registration office within forty-five (45) days before
21an election, the county voter registration office may defer acting
22on the petition, and the time requirements under this section for
23action by the county voter registration office do not begin to run
24until five (5) days after the date of the election.
25(10) The county voter registration office must file a certificate and
26each petition with:
27(A) the township trustee, if the political subdivision is a
28township, who shall present the petition or petitions to the
29township board; or
30(B) the body that has the authority to authorize the issuance of
31the bonds or the execution of a lease, if the political
32subdivision is not a township;
33within thirty-five (35) business days of the filing of the petition
34requesting a petition and remonstrance process. The certificate
35must state the number of petitioners that are owners of property
36within the political subdivision and the number of petitioners who
37are registered voters residing within the political subdivision.
38 If a sufficient petition requesting a petition and remonstrance process
39 is not filed by owners of property or registered voters as set forth in this
40 section, the political subdivision may issue bonds or enter into a lease
41 by following the provisions of law relating to the bonds to be issued or
42 lease to be entered into.
 2026  IN 1289—LS 6754/DI 92
                                     17
1     (c) A political subdivision may not divide a controlled project in
2 order to avoid the requirements of this section and section 3.2 of this
3 chapter. A person that owns property within a political subdivision or
4 a person that is a registered voter residing within a political subdivision
5 may file a petition with the department of local government finance
6 objecting that the political subdivision has divided a controlled project
7 in order to avoid the requirements of this section and section 3.2 of this
8 chapter. The petition must be filed not more than ten (10) days after the
9 political subdivision gives notice of the political subdivision's decision
10 to issue bonds or enter into leases for a capital project that the person
11 believes is the result of a division of a controlled project that is
12 prohibited by this subsection. If the department of local government
13 finance receives a petition under this subsection, the department shall
14 not later than thirty (30) days after receiving the petition make a final
15 determination on the issue of whether the political subdivision divided
16 a controlled project in order to avoid the requirements of this section
17 and section 3.2 of this chapter. If the department of local government
18 finance determines that a political subdivision divided a controlled
19 project in order to avoid the requirements of this section and section
20 3.2 of this chapter and the political subdivision continues to desire to
21 proceed with the project, the political subdivision shall fulfill the
22 requirements of this section and section 3.2 of this chapter, if
23 applicable, regardless of the cost of the project in dispute. A political
24 subdivision shall be considered to have divided a capital project in
25 order to avoid the requirements of this section and section 3.2 of this
26 chapter if the result of one (1) or more of the subprojects cannot
27 reasonably be considered an independently desirable end in itself
28 without reference to another capital project. This subsection does not
29 prohibit a political subdivision from undertaking a series of capital
30 projects in which the result of each capital project can reasonably be
31 considered an independently desirable end in itself without reference
32 to another capital project.
33     SECTION 6. IC 6-1.1-20-3.5, AS AMENDED BY P.L.68-2025,
34 SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2026]: Sec. 3.5. (a) This section applies only to a controlled
36 project that meets the following conditions:
37(1) The controlled project is described in one (1) of the following
38categories:
39(A) An elementary school building, middle school building,
40high school building, or other school building for academic
41instruction that will be used for any combination of
42kindergarten through grade 12 and will cost more than the
 2026  IN 1289—LS 6754/DI 92
                                  18
1lesser of the following:
2(i) The threshold amount determined under this item. In the
3case of an ordinance or resolution adopted before January 1,
42018, making a preliminary determination to issue bonds or
5enter into a lease for the project, the threshold amount is ten
6million dollars ($10,000,000). In the case of an ordinance or
7resolution adopted after December 31, 2017, and before
8January 1, 2019, making a preliminary determination to
9issue bonds or enter into a lease for the project, the threshold
10amount is fifteen million dollars ($15,000,000). In the case
11of an ordinance or resolution adopted in a calendar year after
12December 31, 2018, making a preliminary determination to
13issue bonds or enter into a lease for the project, the threshold
14amount is an amount (as determined by the department of
15local government finance) equal to the result of the
16maximum levy growth quotient determined under
17IC 6-1.1-18.5-2 for the year multiplied by the threshold
18amount determined under this item for the preceding
19calendar year. In the case of a threshold amount determined
20under this item that applies for a calendar year after
21December 31, 2018, the department of local government
22finance shall publish the threshold in the Indiana Register
23under IC 4-22-7-7 not more than sixty (60) days after the
24date the budget agency releases the maximum levy growth
25quotient for the ensuing year under IC 6-1.1-18.5-2.
26(ii) An amount equal to one percent (1%) of the total gross
27assessed value of property within the political subdivision
28on the last assessment date, if that total gross assessed value
29is more than one billion dollars ($1,000,000,000), or ten
30million dollars ($10,000,000), if the total gross assessed
31value of property within the political subdivision on the last
32assessment date is not more than one billion dollars
33($1,000,000,000).
34(B) Any other controlled project that is not a controlled project
35described in clause (A) and will cost the political subdivision
36more than the lesser of the following:
37(i) The threshold amount determined under this item. In the
38case of an ordinance or resolution adopted before January 1,
392018, making a preliminary determination to issue bonds or
40enter into a lease for the project, the threshold amount is
41twelve million dollars ($12,000,000). In the case of an
42ordinance or resolution adopted after December 31, 2017,
 2026  IN 1289—LS 6754/DI 92
                                  19
1and before January 1, 2019, making a preliminary
2determination to issue bonds or enter into a lease for the
3project, the threshold amount is fifteen million dollars
4($15,000,000). In the case of an ordinance or resolution
5adopted in a calendar year after December 31, 2018, making
6a preliminary determination to issue bonds or enter into a
7lease for the project, the threshold amount is an amount (as
8determined by the department of local government finance)
9equal to the result of the maximum levy growth quotient
10determined under IC 6-1.1-18.5-2 for the year multiplied by
11the threshold amount determined under this item for the
12preceding calendar year. In the case of a threshold amount
13determined under this item that applies for a calendar year
14after December 31, 2018, the department of local
15government finance shall publish the threshold in the
16Indiana Register under IC 4-22-7-7 not more than sixty (60)
17days after the date the budget agency releases the maximum
18levy growth quotient for the ensuing year under
19IC 6-1.1-18.5-2.
20(ii) An amount equal to one percent (1%) of the total gross
21assessed value of property within the political subdivision
22on the last assessment date, if that total gross assessed value
23is more than one hundred million dollars ($100,000,000), or
24one million dollars ($1,000,000), if the total gross assessed
25value of property within the political subdivision on the last
26assessment date is not more than one hundred million
27dollars ($100,000,000).
28(C) Any other controlled project for which a political
29subdivision adopts an ordinance or resolution making a
30preliminary determination to issue bonds or enter into a lease
31for the project, if the sum of:
32(i) the cost of that controlled project; plus
33(ii) the costs of all other controlled projects for which the
34political subdivision has previously adopted within the
35preceding three hundred sixty-five (365) days an ordinance
36or resolution making a preliminary determination to issue
37bonds or enter into a lease for those other controlled
38projects;
39exceeds twenty-five million dollars ($25,000,000).
40(D) A controlled project funded by debt service if the scope of
41the project changes from the purpose of the project initially
42advertised to taxpayers as determined under section 4.3(c) of
 2026  IN 1289—LS 6754/DI 92
                                      20
1this chapter.
2(E) This clause does not apply to a project for which a public
3hearing to issue bonds or enter into a lease has been conducted
4under IC 20-26-7-37 before July 1, 2023, or to a project for
5which an ordinance or resolution making a preliminary
6determination to issue bonds or enter into a lease is adopted
7after June 30, 2025. Except as provided in section 4.5 of this
8chapter, any other controlled project if the political
9subdivision's total debt service tax rate is at least eighty cents
10($0.80) per one hundred dollars ($100) of assessed value. This
11clause expires December 31, 2025. For purposes of this clause,
12a political subdivision's total debt service tax rate does not
13include a tax rate imposed in a referendum debt service tax
14levy approved by voters.
15(F) (E) Except as provided in section 4.5 of this chapter, any
16other project for which an ordinance or resolution making a
17preliminary determination to issue bonds or enter into a lease
18is adopted after June 30, 2025, if:
19(i) in the case of a school corporation, the school
20corporation's total debt service tax rate is more than seventy
21cents ($0.70) per one hundred dollars ($100) of assessed
22value;
23(ii) in the case of a city, county, or town, the city's, county's,
24or town's total debt service tax rate is more than forty cents
25($0.40) per one hundred dollars ($100) of assessed value; or
26(iii) in the case of a political subdivision not described in
27item (i) or (ii), the political subdivision's total debt service
28tax rate is more than ten cents ($0.10) per one hundred
29dollars ($100) of assessed value.
30However, this clause does not apply to a project for which a
31public hearing to issue bonds or enter into a lease has been
32conducted under IC 20-26-7-37 before July 1, 2025. For
33purposes of this clause, a political subdivision's total debt
34service tax rate does not include a tax rate imposed in a
35referendum debt service tax levy approved by voters.
36(2) The proper officers of the political subdivision make a
37preliminary determination after June 30, 2008, in the manner
38described in subsection (b) to issue bonds or enter into a lease for
39the controlled project.
40    (b) Subject to subsection (d), a political subdivision may not impose
41 property taxes to pay debt service on bonds or lease rentals on a lease
42 for a controlled project without completing the following procedures:
 2026  IN 1289—LS 6754/DI 92
                                      21
1(1) The proper officers of a political subdivision shall publish
2notice in accordance with IC 5-3-1 and send notice by first class
3mail to the circuit court clerk and to any organization that delivers
4to the officers, before January 1 of that year, an annual written
5request for notices of any meeting to consider the adoption of an
6ordinance or a resolution making a preliminary determination to
7issue bonds or enter into a lease and shall conduct at least two (2)
8public hearings on the preliminary determination before adoption
9of the ordinance or resolution. The political subdivision must at
10each of the public hearings on the preliminary determination
11allow the public to testify regarding the preliminary determination
12and must make the following information available to the public
13at each of the public hearings on the preliminary determination,
14in addition to any other information required by law:
15(A) The result of the political subdivision's current and
16projected annual debt service payments divided by the net
17assessed value of taxable property within the political
18subdivision.
19(B) The result of:
20(i) the sum of the political subdivision's outstanding long
21term debt plus the outstanding long term debt of other taxing
22units that include any of the territory of the political
23subdivision; divided by
24(ii) the net assessed value of taxable property within the
25political subdivision.
26(C) The information specified in subdivision (3)(A) through
27(3)(G).
28(2) If the proper officers of a political subdivision make a
29preliminary determination to issue bonds or enter into a lease, the
30officers shall give notice of the preliminary determination by:
31(A) publication in accordance with IC 5-3-1; and
32(B) first class mail to the circuit court clerk and to the
33organizations described in subdivision (1).
34(3) A notice under subdivision (2) of the preliminary
35determination of the political subdivision to issue bonds or enter
36into a lease must include the following information:
37(A) The maximum term of the bonds or lease.
38(B) The maximum principal amount of the bonds or the
39maximum lease rental for the lease.
40(C) The estimated interest rates that will be paid and the total
41interest costs associated with the bonds or lease.
42(D) The purpose of the bonds or lease.
 2026  IN 1289—LS 6754/DI 92
                                      22
1(E) A statement that the proposed debt service or lease
2payments must be approved in an election on a local public
3question held under section 3.6 of this chapter.
4(F) With respect to bonds issued or a lease entered into to
5open:
6(i) a new school facility; or
7(ii) an existing facility that has not been used for at least
8three (3) years and that is being reopened to provide
9additional classroom space;
10the estimated costs the school corporation expects to annually
11incur to operate the facility.
12(G) The following information:
13(i) The political subdivision's current debt service levy and
14rate.
15(ii) The estimated increase to the political subdivision's debt
16service levy and rate that will result if the political
17subdivision issues the bonds or enters into the lease.
18(iii) The estimated amount of the political subdivision's debt
19service levy and rate that will result during the following ten
20(10) years if the political subdivision issues the bonds or
21enters into the lease, after also considering any changes that
22will occur to the debt service levy and rate during that
23period on account of any outstanding bonds or lease
24obligations that will mature or terminate during that period.
25(H) The information specified in subdivision (1)(A) through
26(1)(B).
27(4) This subdivision does not apply to a controlled project
28described in subsection (a)(1)(E). (before its expiration) or
29subsection (a)(1)(F). After notice is given, a petition requesting
30the application of the local public question process under section
313.6 of this chapter may be filed by the lesser of:
32(A) five hundred (500) persons who are either owners of
33property within the political subdivision or registered voters
34residing within the political subdivision; or
35(B) five percent (5%) of the registered voters residing within
36the political subdivision.
37(5) This subdivision does not apply to a controlled project
38described in subsection (a)(1)(E). (before its expiration) or
39subsection (a)(1)(F). The state board of accounts shall design and,
40upon request by the county voter registration office, deliver to the
41county voter registration office or the county voter registration
42office's designated printer the petition forms to be used solely in
 2026  IN 1289—LS 6754/DI 92
                                      23
1the petition process described in this section. The county voter
2registration office shall issue to an owner or owners of property
3within the political subdivision or a registered voter residing
4within the political subdivision the number of petition forms
5requested by the owner or owners or the registered voter. Each
6form must be accompanied by instructions detailing the
7requirements that:
8(A) the carrier and signers must be owners of property or
9registered voters;
10(B) the carrier must be a signatory on at least one (1) petition;
11(C) after the signatures have been collected, the carrier must
12swear or affirm before a notary public that the carrier
13witnessed each signature; and
14(D) govern the closing date for the petition period.
15Persons requesting forms may be required to identify themselves
16as owners of property or registered voters and may be allowed to
17pick up additional copies to distribute to other owners of property
18or registered voters. Each person signing a petition must indicate
19whether the person is signing the petition as a registered voter
20within the political subdivision or is signing the petition as the
21owner of property within the political subdivision. A person who
22signs a petition as a registered voter must indicate the address at
23which the person is registered to vote. A person who signs a
24petition as an owner of property must indicate the address of the
25property owned by the person in the political subdivision.
26(6) This subdivision does not apply to a controlled project
27described in subsection (a)(1)(E). (before its expiration) or
28subsection (a)(1)(F). Each petition must be verified under oath by
29at least one (1) qualified petitioner in a manner prescribed by the
30state board of accounts before the petition is filed with the county
31voter registration office under subdivision (7).
32(7) This subdivision does not apply to a controlled project
33described in subsection (a)(1)(E). (before its expiration) or
34subsection (a)(1)(F). Each petition must be filed with the county
35voter registration office not more than thirty (30) days after
36publication under subdivision (2) of the notice of the preliminary
37determination.
38(8) This subdivision does not apply to a controlled project
39described in subsection (a)(1)(E). (before its expiration) or
40subsection (a)(1)(F). The county voter registration office shall
41determine whether each person who signed the petition is a
42registered voter. However, after the county voter registration
 2026  IN 1289—LS 6754/DI 92
                                      24
1office has determined that at least five hundred twenty-five (525)
2persons who signed the petition are registered voters within the
3political subdivision, the county voter registration office is not
4required to verify whether the remaining persons who signed the
5petition are registered voters. If the county voter registration
6office does not determine that at least five hundred twenty-five
7(525) persons who signed the petition are registered voters, the
8county voter registration office, not more than fifteen (15)
9business days after receiving a petition, shall forward a copy of
10the petition to the county auditor. Not more than ten (10) business
11days after receiving the copy of the petition, the county auditor
12shall provide to the county voter registration office a statement
13verifying:
14(A) whether a person who signed the petition as a registered
15voter but is not a registered voter, as determined by the county
16voter registration office, is the owner of property in the
17political subdivision; and
18(B) whether a person who signed the petition as an owner of
19property within the political subdivision does in fact own
20property within the political subdivision.
21(9) This subdivision does not apply to a controlled project
22described in subsection (a)(1)(E). (before its expiration) or
23subsection (a)(1)(F). The county voter registration office, not
24more than ten (10) business days after determining that at least
25five hundred twenty-five (525) persons who signed the petition
26are registered voters or after receiving the statement from the
27county auditor under subdivision (8), as applicable, shall make
28the final determination of whether a sufficient number of persons
29have signed the petition. Whenever the name of an individual who
30signs a petition form as a registered voter contains a minor
31variation from the name of the registered voter as set forth in the
32records of the county voter registration office, the signature is
33presumed to be valid, and there is a presumption that the
34individual is entitled to sign the petition under this section. Except
35as otherwise provided in this chapter, in determining whether an
36individual is a registered voter, the county voter registration office
37shall apply the requirements and procedures used under IC 3 to
38determine whether a person is a registered voter for purposes of
39voting in an election governed by IC 3. However, an individual is
40not required to comply with the provisions concerning providing
41proof of identification to be considered a registered voter for
42purposes of this chapter. A person is entitled to sign a petition
 2026  IN 1289—LS 6754/DI 92
                                    25
1      only one (1) time in a particular referendum process under this
2      chapter, regardless of whether the person owns more than one (1)
3      parcel of real property, mobile home assessed as personal
4      property, or manufactured home assessed as personal property or
5      a combination of those types of property within the political
6      subdivision and regardless of whether the person is both a
7      registered voter in the political subdivision and the owner of
8      property within the political subdivision. Notwithstanding any
9      other provision of this section, if a petition is presented to the
10      county voter registration office within forty-five (45) days before
11      an election, the county voter registration office may defer acting
12      on the petition, and the time requirements under this section for
13      action by the county voter registration office do not begin to run
14      until five (5) days after the date of the election.
15      (10) This subdivision does not apply to a controlled project
16      described in subsection (a)(1)(E). (before its expiration) or
17      subsection (a)(1)(F). The county voter registration office must file
18      a certificate and each petition with:
19(A) the township trustee, if the political subdivision is a
20township, who shall present the petition or petitions to the
21township board; or
22(B) the body that has the authority to authorize the issuance of
23the bonds or the execution of a lease, if the political
24subdivision is not a township;
25      within thirty-five (35) business days of the filing of the petition
26      requesting the referendum process. The certificate must state the
27      number of petitioners who are owners of property within the
28      political subdivision and the number of petitioners who are
29      registered voters residing within the political subdivision.
30      (11) This subdivision does not apply to a controlled project
31      described in subsection (a)(1)(E). (before its expiration) or
32      subsection (a)(1)(F). If a sufficient petition requesting the local
33      public question process is not filed by owners of property or
34      registered voters as set forth in this section, the political
35      subdivision may issue bonds or enter into a lease by following the
36      provisions of law relating to the bonds to be issued or lease to be
37      entered into.
38    (c) If the proper officers of a political subdivision make a
39 preliminary determination to issue bonds or enter into a lease, the
40 officers shall provide to the county auditor:
41      (1) a copy of the notice required by subsection (b)(2); and
42      (2) any other information the county auditor requires to fulfill the
 2026  IN 1289—LS 6754/DI 92
                                    26
1county auditor's duties under section 3.6 of this chapter.
2     (d) In addition to the procedures in subsection (b), if any capital
3 improvement components addressed in the most recent:
4(1) threat assessment of the buildings within the school
5corporation; or
6(2) school safety plan (as described in IC 20-26-18.2-2(b));
7 concerning a particular school have not been completed or require
8 additional funding to be completed, before the school corporation may
9 impose property taxes to pay debt service on bonds or lease rentals for
10 a lease for a controlled project, and in addition to any other components
11 of the controlled project, the controlled project must include any capital
12 improvements necessary to complete those components described in
13 subdivisions (1) and (2) that have not been completed or that require
14 additional funding to be completed.
15     (e) In addition to the other procedures in this section, an ordinance
16 or resolution making a preliminary determination to issue bonds or
17 enter into leases that is considered for adoption must include a
18 statement of:
19(1) the maximum annual debt service for the controlled project for
20each year in which the debt service will be paid; and
21(2) the schedule of the estimated annual tax levy and rate over a
22ten (10) year period;
23 factoring in changes that will occur to the debt service levy and tax rate
24 during the period on account of any outstanding bonds or lease
25 obligations that will mature or terminate during the period.
26     SECTION 7. IC 6-1.1-20-3.6, AS AMENDED BY P.L.68-2025,
27 SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2026]: Sec. 3.6. (a) Except as provided in sections 3.7 and 3.8
29 of this chapter, this section applies only to a controlled project
30 described in section 3.5(a) of this chapter.
31     (b) In the case of a controlled project:
32(1) described in section 3.5(a)(1)(A) through 3.5(a)(1)(C) of this
33chapter, if a sufficient petition requesting the application of the
34local public question process has been filed as set forth in section
353.5 of this chapter; or
36(2) described in section 3.5(a)(1)(E) (before its expiration) or
373.5(a)(1)(F) of this chapter;
38 a political subdivision may not impose property taxes to pay debt
39 service on bonds or lease rentals on a lease for a controlled project
40 unless the political subdivision's proposed debt service or lease rental
41 is approved in an election on a local public question held under this
42 section.
 2026  IN 1289—LS 6754/DI 92
                                    27
1     (c) Except as provided in subsection (k), the following question
2 shall be submitted to the eligible voters at the election conducted under
3 this section:
4"Shall ________ (insert the name of the political subdivision)
5increase property taxes paid to the _______ (insert the type of
6political subdivision) for no more than ______ (insert the number
7of years immediately following the holding of the referendum)
8years for the purpose of funding _______ (insert a brief
9description of the project use or purpose) for which the principal
10debt amount for the project will cost no more than ______ (insert
11the total cost of the project principal amount) and the financing
12cost including interest and fees will cost no more than an
13additional ______ (insert the total financing costs including
14interest and fees) and is estimated to increase the property taxes
15paid to the ______ (insert the type of political subdivision) by
16imposing a property tax rate that results in a maximum annual
17amount that does not exceed ______ (insert maximum amount of
18annual levy). If this capital referendum public question is
19approved by the voters, for a median residence of ______ (insert
20the political subdivision's median household assessed value,
21rounded up to the next fifty thousand dollars ($50,000)), the
22property's annual property tax bill would increase by ______
23(insert dollar amount, rounded up to the next whole dollar) per
24year.".
25 The public question must appear on the ballot in the form approved by
26 the county election board. If the political subdivision proposing to issue
27 bonds or enter into a lease is located in more than one (1) county, the
28 county election board of each county shall jointly approve the form of
29 the public question that will appear on the ballot in each county. The
30 form approved by the county election board may differ from the
31 language certified to the county election board by the county auditor.
32 If the county election board approves the language of a public question
33 under this subsection, the county election board shall submit the
34 language and the certification of the county auditor to the department
35 of local government finance for review.
36     (d) The department of local government finance shall review the
37 language of the public question to evaluate whether the description of
38 the controlled project is accurate and is not biased against either a vote
39 in favor of the controlled project or a vote against the controlled
40 project. The department of local government finance may either
41 approve the ballot language as submitted or recommend that the ballot
42 language be modified as necessary to ensure that the description of the
 2026  IN 1289—LS 6754/DI 92
                                     28
1 controlled project is accurate and is not biased. The department of local
2 government finance shall certify its approval or recommendations to
3 the county auditor and the county election board not more than ten (10)
4 days after the language of the public question is submitted to the
5 department for review. If the department of local government finance
6 recommends a modification to the ballot language, the county election
7 board shall, after reviewing the recommendations of the department of
8 local government finance, submit modified ballot language to the
9 department for the department's approval or recommendation of any
10 additional modifications. The public question may not be certified by
11 the county auditor under subsection (e) unless the department of local
12 government finance has first certified the department's final approval
13 of the ballot language for the public question.
14     (e) The county auditor shall certify the finally approved public
15 question to the county election board of each county in which the
16 political subdivision is located. The certification must occur not later
17 than noon August 1. Subject to the certification requirements and
18 deadlines under this subsection and except as provided in subsection
19 (j), the public question shall be placed on the ballot at the next general
20 election.
21     (f) The circuit court clerk shall certify the results of the public
22 question to the following:
23(1) The county auditor of each county in which the political
24subdivision is located.
25(2) The department of local government finance.
26     (g) Subject to the requirements of IC 6-1.1-18.5-8, the political
27 subdivision may issue the proposed bonds or enter into the proposed
28 lease rental if a majority of the eligible voters voting on the public
29 question vote in favor of the public question.
30     (h) If a majority of the eligible voters voting on the public question
31 vote in opposition to the public question, both of the following apply:
32(1) The political subdivision may not issue the proposed bonds or
33enter into the proposed lease rental.
34(2) Another public question under this section on the same or a
35substantially similar project may not be submitted to the voters
36earlier than:
37(A) except as provided in clause (B), seven hundred (700)
38days after the date of the public question; or
39(B) three hundred fifty (350) days after the date of the election,
40if a petition that meets the requirements of subsection (m) is
41submitted to the county auditor.
42     (i) IC 3, to the extent not inconsistent with this section, applies to an
 2026  IN 1289—LS 6754/DI 92
                                    29
1 election held under this section.
2     (j) A political subdivision may not divide a controlled project in
3 order to avoid the requirements of this section and section 3.5 of this
4 chapter. A person that owns property within a political subdivision or
5 a person that is a registered voter residing within a political subdivision
6 may file a petition with the department of local government finance
7 objecting that the political subdivision has divided a controlled project
8 into two (2) or more capital projects in order to avoid the requirements
9 of this section and section 3.5 of this chapter. The petition must be filed
10 not more than ten (10) days after the political subdivision gives notice
11 of the political subdivision's decision under section 3.5 of this chapter
12 or a determination under section 5 of this chapter to issue bonds or
13 enter into leases for a capital project that the person believes is the
14 result of a division of a controlled project that is prohibited by this
15 subsection. If the department of local government finance receives a
16 petition under this subsection, the department shall not later than thirty
17 (30) days after receiving the petition make a final determination on the
18 issue of whether the political subdivision divided a controlled project
19 in order to avoid the requirements of this section and section 3.5 of this
20 chapter. If the department of local government finance determines that
21 a political subdivision divided a controlled project in order to avoid the
22 requirements of this section and section 3.5 of this chapter and the
23 political subdivision continues to desire to proceed with the project, the
24 political subdivision may appeal the determination of the department
25 of local government finance to the Indiana board of tax review. A
26 political subdivision shall be considered to have divided a capital
27 project in order to avoid the requirements of this section and section
28 3.5 of this chapter if the result of one (1) or more of the subprojects
29 cannot reasonably be considered an independently desirable end in
30 itself without reference to another capital project. This subsection does
31 not prohibit a political subdivision from undertaking a series of capital
32 projects in which the result of each capital project can reasonably be
33 considered an independently desirable end in itself without reference
34 to another capital project.
35     (k) This subsection applies to a political subdivision for which a
36 petition requesting a public question has been submitted under section
37 3.5 of this chapter. The legislative body (as defined in IC 36-1-2-9) of
38 the political subdivision may adopt a resolution to withdraw a
39 controlled project from consideration in a public question. If the
40 legislative body provides a certified copy of the resolution to the county
41 auditor and the county election board not later than sixty-three (63)
42 days before the election at which the public question would be on the
 2026  IN 1289—LS 6754/DI 92
                                     30
1 ballot, the public question on the controlled project shall not be placed
2 on the ballot and the public question on the controlled project shall not
3 be held, regardless of whether the county auditor has certified the
4 public question to the county election board. If the withdrawal of a
5 public question under this subsection requires the county election
6 board to reprint ballots, the political subdivision withdrawing the
7 public question shall pay the costs of reprinting the ballots. If a political
8 subdivision withdraws a public question under this subsection that
9 would have been held at a special election and the county election
10 board has printed the ballots before the legislative body of the political
11 subdivision provides a certified copy of the withdrawal resolution to
12 the county auditor and the county election board, the political
13 subdivision withdrawing the public question shall pay the costs
14 incurred by the county in printing the ballots. If a public question on a
15 controlled project is withdrawn under this subsection, a public question
16 under this section on the same controlled project or a substantially
17 similar controlled project may not be submitted to the voters earlier
18 than three hundred fifty (350) days after the date the resolution
19 withdrawing the public question is adopted.
20     (l) If a public question regarding a controlled project is placed on
21 the ballot to be voted on at an election under this section, the political
22 subdivision shall submit to the department of local government finance,
23 at least thirty (30) days before the election, the following information
24 regarding the proposed controlled project for posting on the
25 department's website:
26(1) The cost per square foot of any buildings being constructed as
27part of the controlled project.
28(2) The effect that approval of the controlled project would have
29on the political subdivision's property tax rate.
30(3) The maximum term of the bonds or lease.
31(4) The maximum principal amount of the bonds or the maximum
32lease rental for the lease.
33(5) The estimated interest rates that will be paid and the total
34interest costs associated with the bonds or lease.
35(6) The purpose of the bonds or lease.
36(7) In the case of a controlled project proposed by a school
37corporation:
38(A) the current and proposed square footage of school building
39space per student;
40(B) enrollment patterns within the school corporation; and
41(C) the age and condition of the current school facilities.
42     (m) If a majority of the eligible voters voting on the public question
 2026  IN 1289—LS 6754/DI 92
                                    31
1 vote in opposition to the public question, a petition may be submitted
2 to the county auditor to request that the limit under subsection
3 (h)(2)(B) apply to the holding of a subsequent public question by the
4 political subdivision. If such a petition is submitted to the county
5 auditor and is signed by the lesser of:
6(1) five hundred (500) persons who are either owners of property
7within the political subdivision or registered voters residing
8within the political subdivision; or
9(2) five percent (5%) of the registered voters residing within the
10political subdivision;
11 the limit under subsection (h)(2)(B) applies to the holding of a second
12 public question by the political subdivision and the limit under
13 subsection (h)(2)(A) does not apply to the holding of a second public
14 question by the political subdivision.
15    SECTION 8. IC 6-1.1-20-4.5, AS AMENDED BY P.L.68-2025,
16 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2026]: Sec. 4.5. (a) As used in this section, "maintenance
18 emergency" refers to a response to a condition that is not otherwise
19 subject to the application of section 1.1(a)(6) of this chapter and
20 includes:
21(1) repair of a boiler or chiller system;
22(2) roof repair;
23(3) storm damage repair; or
24(4) any other repair that the department determines is a
25maintenance emergency for which waiver of the application of
26section 3.5(a)(1)(E) (before its expiration) or 3.5(a)(1)(F) of this
27chapter is warranted.
28    (b) A political subdivision may submit a request to the department
29 to waive the application of section 3.5(a)(1)(E) (before its expiration)
30 or 3.5(a)(1)(F) of this chapter, if the proposed controlled project of the
31 political subdivision is to address a maintenance emergency with
32 respect to a building owned or leased by the political subdivision.
33    (c) The department shall require the political subdivision to submit
34 any information that the department considers necessary to determine
35 whether the condition that the political subdivision contends is a
36 maintenance emergency.
37    (d) The department shall review a request and issue a determination
38 not later than forty-five (45) days after the department receives a
39 request under this section determining whether the condition that the
40 political subdivision contends is a maintenance emergency is sufficient
41 to waive the application of section 3.5(a)(1)(E) (before its expiration)
42 or 3.5(a)(1)(F) of this chapter. If the department determines that the
 2026  IN 1289—LS 6754/DI 92
                                   32
1 condition is a maintenance emergency then section 3.5(a)(1)(E) (before
2 its expiration) or 3.5(a)(1)(F) of this chapter is waived and does not
3 apply to the proposed controlled project.
4     (e) A waiver of the application of section 3.5(a)(1)(E) (before its
5 expiration) or 3.5(a)(1)(F) of this chapter in accordance with this
6 section may not be construed as a waiver of any other requirement of
7 this chapter with respect to the proposed controlled project.
8     SECTION 9. IC 6-1.1-30-17, AS AMENDED BY P.L.9-2024,
9 SECTION 178, IS AMENDED TO READ AS FOLLOWS
10 [EFFECTIVE JULY 1, 2026]: Sec. 17. (a) Except as provided in
11 subsection (c) and subject to subsection (d), the department of state
12 revenue and the state comptroller shall, when requested by the
13 department of local government finance, withhold a percentage of the
14 distributions of local income tax revenue under IC 6-3.6-9, if:
15(1) the county assessor has not transmitted to the department of
16local government finance by October 1 of the year in which the
17distribution is scheduled to be made the data for all townships in
18the county required to be transmitted under IC 6-1.1-4-25;
19(2) the county auditor has not paid a bill for services under
20IC 6-1.1-4-31.5 to the department of local government finance in
21a timely manner;
22(3) the county assessor has not forwarded to the department of
23local government finance in a timely manner sales disclosure
24form data under IC 6-1.1-5.5-3;
25(4) the county auditor has not forwarded to the department of
26local government finance the duplicate copies of all approved
27exemption applications required to be forwarded by that date
28under IC 6-1.1-11-8(a);
29(5) by the date the distribution is scheduled to be made, the
30county auditor has not sent a certified statement required to be
31sent by that date under IC 6-1.1-17-1 to the department of local
32government finance;
33(6) the county does not maintain a certified computer system that
34meets the requirements of IC 6-1.1-31.5-3.5;
35(7) the county auditor has not transmitted the data described in
36IC 36-2-9-20 to the department of local government finance in the
37form and on the schedule specified by IC 36-2-9-20;
38(8) the county has not established a parcel index numbering
39system under 50 IAC 26-8-1 in a timely manner; or
40(9) a county official has not provided other information to the
41department of local government finance in a timely manner as
42required by the department of local government finance. or
 2026  IN 1289—LS 6754/DI 92
                                    33
1(10) the department of local government finance incurs additional
2costs to assist a covered county (as defined in IC 6-1.1-22.6-1) to
3issue tax statements within the time frame specified in
4IC 6-1.1-22.6-18(b) for each year that the county experienced
5delayed property taxes (as defined in IC 6-1.1-22.6-2) before the
6year in which the county qualifies as a covered county.
7 The percentage to be withheld is the percentage determined by the
8 department of local government finance. However, the percentage
9 withheld for a reason stated in subdivision (10) may not exceed the
10 percentage needed to reimburse the department of local government
11 finance for the costs incurred by the department of local government
12 finance to take the actions necessary to permit a covered county (as
13 defined in IC 6-1.1-22.6-1) to issue reconciling tax statements for prior
14 year delayed property taxes (as defined in IC 6-1.1-22.6-2) within the
15 time frame specified in IC 6-1.1-22.6-18(b). The county governmental
16 taxing unit of a covered county (as defined in IC 6-1.1-22.6-1) shall
17 reimburse the department of local government finance for these
18 expenses. The amount withheld under subdivision (10) reduces only
19 the amount that would otherwise be distributed to the county
20 governmental taxing unit of a covered county (as defined in
21 IC 6-1.1-22.6-1) and not money distributable to any other political
22 subdivision. The withholding of an amount under subdivision (10) does
23 not relieve the county government of a covered county (as defined in
24 IC 6-1.1-22.6-1) from making bond or lease payments that would
25 otherwise be paid from withheld amounts or providing property tax
26 credits that would otherwise be provided under IC 6-3.6 from withheld
27 amounts. Subdivision (10) does not apply to any county other than a
28 covered county (as defined in IC 6-1.1-22.6-1).
29     (b) Except as provided in subsection (e), money not distributed for
30 the reasons stated in subsection (a) shall be distributed to the county
31 when the department of local government finance determines that the
32 failure to:
33(1) provide information; or
34(2) pay a bill for services;
35 has been corrected.
36     (c) The restrictions on distributions under subsection (a) do not
37 apply if the department of local government finance determines that the
38 failure to:
39(1) provide information; or
40(2) pay a bill for services;
41 in a timely manner is justified by unusual circumstances.
42     (d) The department of local government finance shall give the
 2026  IN 1289—LS 6754/DI 92
                                    34
1 county auditor at least thirty (30) days notice in writing before the
2 department of state revenue or the state comptroller withholds a
3 distribution under subsection (a).
4     (e) Money not distributed for the reason stated in subsection (a)(2)
5 may be deposited in the fund established by IC 6-1.1-5.5-4.7(a). Money
6 deposited under this subsection is not subject to distribution under
7 subsection (b).
8     (f) This subsection applies to a county that will not receive a
9 distribution of local income tax revenue under IC 6-3.6-9. At the
10 request of the department of local government finance, an amount
11 permitted to be withheld under subsection (a) may be withheld from
12 any state revenues that would otherwise be distributed to the county or
13 one (1) or more taxing units in the county.
14     SECTION 10. IC 6-3.1-26-15, AS AMENDED BY P.L.165-2021,
15 SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2026]: Sec. 15. (a) Subject to subsection (d) and (g), (d), a
17 taxpayer may carry forward an unused credit for the number of years
18 determined by the corporation, not to exceed nine (9) consecutive
19 taxable years, beginning with the taxable year after the taxable year in
20 which the taxpayer makes the qualified investment.
21     (b) The amount that a taxpayer may carry forward to a particular
22 taxable year under this section equals the unused part of a tax credit
23 allowed under this chapter.
24     (c) A taxpayer may:
25(1) claim a tax credit under this chapter for a qualified
26investment; and
27(2) carry forward a remainder for one (1) or more different
28qualified investments;
29 in the same taxable year.
30     (d) This subsection applies only to a taxpayer that:
31(1) is not a pass through entity;
32(2) proposes at least five hundred million dollars ($500,000,000)
33in total investment over a five (5) year period; and
34(3) enters into a written agreement with the corporation under this
35subsection before January 1, 2017, and agrees to claim tax credits
36under this chapter for not more than one hundred seventy million
37dollars ($170,000,000) of qualified investment that is made as
38part of the investment proposed as described in subdivision (2).
39 If a tax credit awarded under this chapter exceeds a taxpayer's state
40 income tax liability for the taxable year, notwithstanding subsection
41 (a), the corporation may accelerate to that taxable year the excess
42 amount of the tax credit that could otherwise be carried forward under
 2026  IN 1289—LS 6754/DI 92
                                     35
1 subsection (a). The excess amount of the tax credit accelerated under
2 this subsection shall be discounted as determined under a written
3 agreement entered into by the taxpayer and the corporation. The
4 discounted amount of the excess tax credit accelerated under this
5 subsection as determined by the corporation may be remitted to the
6 taxpayer as provided in the written agreement between the corporation
7 and the taxpayer. Subject to subsection (f), the total amount of qualified
8 investments for which tax credits may be accelerated under this
9 subsection may not exceed one hundred seventy million dollars
10 ($170,000,000). The requirement for an agreement under section
11 21(11) of this chapter does not apply to this subsection. This subsection
12 expires December 31, 2025.
13     (e) A written agreement under subsection (d) may contain a
14 provision for payment of liquidated damages:
15(1) to the corporation for failure to comply with the conditions set
16forth in this chapter and the agreement entered into by the
17corporation and taxpayer under this chapter; and
18(2) that are in addition to an assessment made by the department
19for noncompliance under section 23 of this chapter.
20 This subsection expires December 31, 2025.
21     (f) The total aggregated amount of tax credits that the corporation
22 may discount under subsection (d) and section 16(d) of this chapter in
23 a state fiscal year may not exceed seventeen million dollars
24 ($17,000,000), as determined before the discount is applied. This
25 subsection expires December 31, 2025.
26     (g) (d) This subsection applies only to a taxpayer that:
27(1) is not a pass through entity;
28(2) proposes at least two hundred fifty million dollars
29($250,000,000) in total investment over a five (5) year period; and
30(3) enters into a written agreement with the corporation under this
31subsection before July 1, 2022, and agrees to claim tax credits
32under this chapter for not more than one hundred seventy million
33dollars ($170,000,000) of qualified investment that is made as
34part of the investment proposed as described in subdivision (2).
35 If a tax credit awarded under this chapter exceeds a taxpayer's state
36 income tax liability for the taxable year, notwithstanding subsection
37 (a), the corporation may accelerate to that taxable year the excess
38 amount of the tax credit that could otherwise be carried forward under
39 subsection (a). The excess amount of the tax credit accelerated under
40 this subsection shall be discounted as determined under a written
41 agreement entered into by the taxpayer and the corporation. The
42 discounted amount of the excess tax credit accelerated under this
 2026  IN 1289—LS 6754/DI 92
                                     36
1 subsection as determined by the corporation may be remitted to the
2 taxpayer as provided in the written agreement between the corporation
3 and the taxpayer. Subject to subsection (i), (f), the total amount of
4 qualified investments for which tax credits may be accelerated under
5 this subsection may not exceed one hundred seventy million dollars
6 ($170,000,000). The requirement for an agreement under section
7 21(11) of this chapter does not apply to this subsection. This subsection
8 expires December 31, 2031.
9    (h) (e) A written agreement under subsection (g) (d) may contain a
10 provision for payment of liquidated damages:
11(1) to the corporation for failure to comply with the conditions set
12forth in this chapter and the agreement entered into by the
13corporation and taxpayer under this chapter; and
14(2) that are in addition to an assessment made by the department
15for noncompliance under section 23 of this chapter.
16 This subsection expires December 31, 2031.
17    (i) (f) The total aggregated amount of tax credits that the corporation
18 may discount under subsection (g) (d) and section 16(g) 16(d) of this
19 chapter in a state fiscal year may not exceed seventeen million dollars
20 ($17,000,000), as determined before the discount is applied. This
21 subsection expires December 31, 2031.
22    SECTION 11. IC 6-3.1-26-16, AS AMENDED BY P.L.165-2021,
23 SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2026]: Sec. 16. (a) If a pass through entity does not have state
25 tax liability against which the tax credit may be applied, a shareholder,
26 member, or partner of the pass through entity is entitled to a tax credit
27 equal to:
28(1) the tax credit determined for the pass through entity for the
29taxable year; multiplied by
30(2) the percentage of the pass through entity's distributive income
31to which the shareholder, member, or partner is entitled.
32    (b) Subject to subsection (d) and (g), (d), a shareholder, member, or
33 partner of a pass through entity that is entitled to a tax credit under this
34 section may carry forward an unused credit for the number of years
35 determined by the corporation, not to exceed nine (9) consecutive
36 taxable years, beginning with the taxable year after the taxable year in
37 which the pass through entity makes the qualified investment.
38    (c) The amount that a shareholder, member, or partner may carry
39 forward to a particular taxable year under this section equals the
40 unused part of a tax credit allowed under this chapter to which the
41 shareholder, member, or partner is entitled.
42    (d) This subsection applies only to a pass through entity that:
 2026  IN 1289—LS 6754/DI 92
                                    37
1(1) proposes at least five hundred million dollars ($500,000,000)
2in total investment over a five (5) year period; and
3(2) enters into a written agreement with the corporation under this
4subsection before January 1, 2017, and the shareholders,
5members, or partners of the pass through entity agree to claim tax
6credits under this chapter for not more than one hundred seventy
7million dollars ($170,000,000) of qualified investment that is
8made as part of the investment proposed as described in
9subdivision (1).
10 Notwithstanding subsection (b), the corporation may accelerate to the
11 current taxable year the excess tax credit amount that could otherwise
12 be carried forward by all shareholders, members, or partners of a pass
13 through entity under subsection (b). The excess amount of the tax
14 credit accelerated under this subsection shall be discounted as
15 determined under a written agreement entered into by the pass through
16 entity and the corporation. Subject to subsection (f), the total amount
17 of qualified investments for which tax credits may be accelerated under
18 this subsection may not exceed one hundred seventy million dollars
19 ($170,000,000). The discounted amount of the excess tax credit
20 accelerated under this subsection as determined by the corporation may
21 be remitted to the shareholders, members, or partners of the pass
22 through entity as provided in the written agreement between the
23 corporation and the pass through entity. The requirement for an
24 agreement under section 21(11) of this chapter does not apply to this
25 subsection. This subsection expires December 31, 2025.
26     (e) A written agreement under subsection (d) may contain a
27 provision for payment of liquidated damages:
28(1) to the corporation for failure to comply with the conditions set
29forth in this chapter and the agreement entered into by the
30corporation and pass through entity under this chapter;
31(2) that are personally guaranteed by the shareholders, members,
32or partners of the pass through entity; and
33(3) that are in addition to an assessment made by the department
34for noncompliance under section 23 of this chapter.
35 This subsection expires December 31, 2025.
36     (f) The total aggregated amount of tax credits that the corporation
37 may discount under subsection (d) and section 15(d) of this chapter in
38 a state fiscal year may not exceed seventeen million dollars
39 ($17,000,000), as determined before the discount is applied. This
40 subsection expires December 31, 2025.
41     (g) (d) This subsection applies only to a pass through entity that:
42(1) proposes at least two hundred fifty million dollars
 2026  IN 1289—LS 6754/DI 92
                                    38
1($250,000,000) in total investment over a five (5) year period; and
2(2) enters into a written agreement with the corporation under this
3subsection before July 1, 2022, and the shareholders, members,
4or partners of the pass through entity agree to claim tax credits
5under this chapter for not more than one hundred seventy million
6dollars ($170,000,000) of qualified investment that is made as
7part of the investment proposed as described in subdivision (1).
8 Notwithstanding subsection (b), the corporation may accelerate to the
9 current taxable year the excess tax credit amount that could otherwise
10 be carried forward by all shareholders, members, or partners of a pass
11 through entity under subsection (b). The excess amount of the tax
12 credit accelerated under this subsection shall be discounted as
13 determined under a written agreement entered into by the pass through
14 entity and the corporation. Subject to subsection (i), (f), the total
15 amount of qualified investments for which tax credits may be
16 accelerated under this subsection may not exceed one hundred seventy
17 million dollars ($170,000,000). The discounted amount of the excess
18 tax credit accelerated under this subsection as determined by the
19 corporation may be remitted to the shareholders, members, or partners
20 of the pass through entity as provided in the written agreement between
21 the corporation and the pass through entity. The requirement for an
22 agreement under section 21(11) of this chapter does not apply to this
23 subsection. This subsection expires December 31, 2031.
24     (h) (e) A written agreement under subsection (g) (d) may contain a
25 provision for payment of liquidated damages:
26(1) to the corporation for failure to comply with the conditions set
27forth in this chapter and the agreement entered into by the
28corporation and pass through entity under this chapter;
29(2) that are personally guaranteed by the shareholders, members,
30or partners of the pass through entity; and
31(3) that are in addition to an assessment made by the department
32for noncompliance under section 23 of this chapter.
33 This subsection expires December 31, 2031.
34     (i) (f) The total aggregated amount of tax credits that the corporation
35 may discount under subsection (g) (d) and section 15(g) 15(d) of this
36 chapter in a state fiscal year may not exceed seventeen million dollars
37 ($17,000,000), as determined before the discount is applied. This
38 subsection expires December 31, 2031.
39     SECTION 12. IC 9-17-5-6, AS AMENDED BY P.L.93-2024,
40 SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2026]: Sec. 6. (a) As used in this section, "qualified service
42 provider" means a person able to provide electronic lien or electronic
 2026  IN 1289—LS 6754/DI 92
                                    39
1 title services in coordination with vehicle lienholders and state
2 departments of motor vehicles.
3     (b) As used in this section, "qualified vendor" refers to a person with
4 whom the bureau contracts to:
5(1) develop;
6(2) implement; and
7(3) provide ongoing support with respect to;
8 a statewide electronic lien and title system under this section.
9     (c) As used in this section, "statewide electronic lien and title
10 system" or "system" means a statewide electronic lien and title system
11 implemented by the bureau under this section to process:
12(1) vehicle titles;
13(2) certificate of title data in which a lien is notated; and
14(3) the notification, maintenance, and release of security interests
15in vehicles;
16 through electronic means instead of paper documents.
17     (d) Not later than the dates set forth in subsection (h), the bureau
18 shall implement a statewide electronic lien and title system for the
19 following purposes:
20(1) To facilitate and promote commerce and governmental
21transactions by validating and authorizing the use of electronic
22records.
23(2) To modernize the law and eliminate barriers to electronic
24commerce and governmental transactions resulting from
25uncertainties related to handwritten and other written materials.
26(3) To promote uniformity of the law among the states relating to
27the use of electronic and similar technological means of effecting
28and performing commercial and governmental transactions.
29(4) To promote public confidence in the validity, integrity, and
30reliability of electronic commerce and governmental transactions.
31(5) To promote the development of the legal and business
32infrastructure necessary to implement electronic commerce and
33governmental transactions.
34     (e) The bureau may:
35(1) contract with one (1) or more qualified vendors to develop and
36implement a statewide electronic lien and title system; or
37(2) develop and make available to qualified service providers a
38well defined set of information services that will enable secure
39access to the data and internal application components necessary
40to facilitate the creation of a statewide electronic lien and title
41system.
42     (f) If the bureau elects under subsection (e)(1) to contract with one
 2026  IN 1289—LS 6754/DI 92
                                    40
1 (1) or more qualified vendors to develop and implement a statewide
2 electronic lien and title system, the following apply:
3(1) The bureau shall issue a competitive request for proposals to
4assess the qualifications of any vendor seeking to develop,
5implement, and provide ongoing support for the system. The
6bureau may reserve the right to receive input concerning
7specifications for the establishment and operation of the system
8from parties that do not respond to the bureau's request for
9proposals.
10(2) A contract entered into between the bureau and a qualified
11vendor may not provide for any costs or charges payable by the
12bureau to the qualified vendor. The qualified vendor shall
13reimburse the bureau for any reasonable and documented costs
14incurred by the bureau and directly associated with the
15development, implementation, or ongoing support of the system.
16(3) Upon implementing a statewide electronic lien and title
17system under this section, the qualified vendor may charge
18participating lienholders or their agents a fee for each lien
19notification transaction provided through the system, in order to
20recover the qualified vendor's costs associated with the
21development, implementation, and ongoing administration of the
22system. A lien notification fee under this subdivision must be
23consistent with market pricing and may not exceed three dollars
24and fifty cents ($3.50). The qualified vendor may not charge
25lienholders or their agents any additional fee for lien releases,
26assignments, or transfers. The qualified vendor may not charge a
27fee under this subdivision to a state agency or its agents for lien
28notification, lien release, lien assignment, or lien transfer. To
29recover their costs associated with the lien, participating
30lienholders or their agents may charge:
31(A) the borrower in a vehicle loan; or
32(B) the lessee in a vehicle lease;
33an amount equal to any lien notification fee imposed by the
34qualified vendor under this subdivision, plus a fee in an amount
35not to exceed three dollars ($3) for each electronic transaction in
36which a lien is notated.
37(4) A qualified vendor may also serve as a qualified service
38provider to motor vehicle lienholders if the following conditions
39are met:
40(A) The contract between the bureau and the qualified vendor
41must include provisions specifically prohibiting the qualified
42vendor from using information concerning vehicle titles for
 2026  IN 1289—LS 6754/DI 92
                                     41
1any commercial, marketing, business, or other purpose not
2specifically contemplated by this chapter.
3(B) The contract between the bureau and the qualified vendor
4must include an acknowledgment by the qualified vendor that
5the qualified vendor is required to enter into agreements to
6exchange electronic lien data with any:
7(i) qualified service providers that offer electronic lien or
8title services in Indiana and that have been approved by the
9bureau for participation in the system; and
10(ii) qualified service providers that are not qualified vendors.
11(C) The bureau must periodically monitor the fees charged by
12a qualified vendor that also:
13(i) serves as a qualified service provider to lienholders; or
14(ii) provides services as a qualified vendor to other qualified
15service providers;
16to ensure that the qualified vendor is not engaging in predatory
17pricing.
18     (g) If the bureau elects under subsection (e)(2) to develop an
19 interface to provide qualified service providers secure access to data to
20 facilitate the creation of a statewide electronic lien and title system, the
21 following apply:
22(1) The bureau shall establish:
23(A) the total cost to develop the statewide electronic lien and
24title system by July 1, 2022;
25(B) qualifications for third party service providers offering
26electronic lien services; and
27(C) a qualification process to:
28(i) evaluate electronic lien and title system technologies
29developed by third party service providers; and
30(ii) determine whether such technologies comply with
31defined security and platform standards.
32(2) Not later than July 1, 2022, the bureau shall publish on the
33bureau's website the qualifications established by the bureau
34under subdivision (1). A third party service provider that seeks to
35become qualified by the bureau under this subsection must
36demonstrate the service provider's qualifications, in the form and
37manner specified by the bureau, not later than thirty (30) days
38after the date of the bureau's publication under this subdivision.
39After the elapse of the thirty (30) day period during which third
40party service providers may respond to the bureau's publication
41under this subdivision, the bureau shall notify each responding
42third party service provider as to:
 2026  IN 1289—LS 6754/DI 92
                                     42
1(A) the total cost to develop the system, as determined by the
2bureau under subdivision (1); and
3(B) whether the third party service provider has met the
4qualifications established by the bureau under subdivision (1)
5and is approved to participate in the statewide electronic lien
6and title system.
7(3) Not later than thirty (30) days after receiving a notice of
8approval from the bureau under subdivision (2), each qualified
9service provider shall notify the bureau of the qualified service
10provider's intention to participate in the statewide electronic lien
11and title system.
12(4) Upon implementing a statewide electronic lien and title
13system under this section, the bureau may charge participating
14service providers or their agents a fee for each lien transaction
15provided through the system in order to recover the bureau's costs
16associated with the development, implementation, and ongoing
17administration of the system. A fee under this subdivision must be
18consistent with market pricing and may not exceed three dollars
19and twenty-five cents ($3.25). A fee collected under this
20subdivision shall be deposited in the commission fund. Fees
21collected by the bureau for the implementation of a statewide
22electronic lien and title system are limited to those contained in
23this subdivision. This subdivision expires July 1, 2025.
24(5) (4) A contract entered into between the bureau and a qualified
25service provider may not provide for any costs or charges payable
26by the bureau to the qualified service provider.
27(6) Upon the implementation of a statewide electronic lien and
28title system under this section, a qualified service provider may
29charge participating lienholders or their agents transaction fees
30consistent with market pricing in addition to the fees described in
31subdivision (4). A fee under this subdivision may not be charged
32to a state agency or its agents for lien notification, lien release,
33lien assignment, or lien transfer. To recover their costs associated
34with a lien, participating lienholders or their agents may charge:
35(A) the borrower in a vehicle loan; or
36(B) the lessee in a vehicle lease;
37an amount equal to any fee imposed by a qualified service
38provider under this subdivision, plus a fee in an amount not to
39exceed three dollars ($3) for each electronic transaction in which
40a lien is notated. This subdivision expires July 1, 2025.
41(7) (5) The contract between the bureau and a qualified service
42provider must include provisions specifically prohibiting the
 2026  IN 1289—LS 6754/DI 92
                                    43
1qualified service provider from using information concerning
2vehicle titles for any commercial, marketing, business, or other
3purpose not specifically contemplated by this chapter.
4     (h) Subject to subsection (i), the bureau shall implement, and allow
5 or require the use of, a statewide electronic lien and title system under
6 this section as follows:
7(1) A statewide electronic lien system that is capable of
8processing:
9(A) certificate of title data in which a lien is notated; and
10(B) the notification, maintenance, and release of security
11interests in vehicles;
12through electronic means must be made available for voluntary
13use by vehicle lienholders not later than July 1, 2022.
14(2) Subject to subsection (j)(5), the bureau shall require that the
15statewide electronic lien system made available under subdivision
16(1) be used for processing:
17(A) certificate of title data in which a lien is notated; and
18(B) the notification, maintenance, and release of security
19interests in vehicles;
20after June 30, 2023.
21(3) A statewide electronic title system capable of processing
22vehicle titles through electronic means must be made available for
23voluntary use by vehicle dealers, lienholders, and owners not later
24than July 1, 2025.
25(4) The bureau shall require that the statewide electronic title
26system made available under subdivision (3) be used for
27processing vehicle titles after June 30, 2026.
28     (i) Subsection (h) does not prohibit the bureau or any:
29(1) qualified vendor with whom the bureau contracts under
30subsection (f); or
31(2) qualified service provider with whom the bureau contracts
32under subsection (g);
33 from implementing, making available, or requiring the use of a
34 statewide electronic lien system described in subsection (h)(1) at the
35 same time as, or in conjunction with, a statewide electronic title system
36 described in subsection (h)(3), or from implementing, making
37 available, or requiring the use of a statewide electronic lien system
38 described in subsection (h)(1) or a statewide electronic title system
39 described in subsection (h)(3) before the applicable dates otherwise set
40 forth in subsection (h).
41     (j) The following apply to the use of a statewide electronic lien
42 system described in subsection (h)(1):
 2026  IN 1289—LS 6754/DI 92
                                       44
1(1) Notwithstanding section 5(b) of this chapter, if there are one
2(1) or more liens or encumbrances on a motor vehicle, the bureau
3may electronically transmit the lien to the first lienholder and
4notify the first lienholder of any additional liens. Subsequent lien
5satisfactions may be electronically transmitted to the bureau and
6must include the name and address of the person satisfying the
7lien.
8(2) Whenever the electronic transmission of lien notifications and
9lien satisfactions is used, a certificate of title need not be issued
10until the last lien is satisfied and a clear certificate of title can be
11issued to the owner of the motor vehicle. The bureau may print or
12issue electronically the clear certificate of title to the owner or
13subsequent assignee of the motor vehicle.
14(3) If a motor vehicle is subject to an electronic lien, the
15certificate of title for the motor vehicle is considered to be
16physically held by the lienholder for purposes of compliance with
17state or federal odometer disclosure requirements.
18(4) A certified copy of the bureau's electronic record of a lien is
19admissible in any civil, criminal, or administrative proceeding in
20Indiana as evidence of the existence of the lien. If a certificate of
21title is maintained electronically in a statewide electronic title
22system described in subsection (h)(3), a certified copy of the
23bureau's electronic record of the certificate of title is admissible
24in any civil, criminal, or administrative proceeding in Indiana as
25evidence of the existence and contents of the certificate of title.
26(5) All individuals and lienholders who conduct at least twelve
27(12) lien transactions annually must use the statewide electronic
28lien and title system implemented under this section to record
29information concerning the perfection and release of a security
30interest in a vehicle.
31(6) An electronic notice or release of a lien made through the
32statewide electronic lien and title system implemented under this
33section has the same force and effect as a notice or release of a
34lien made on a paper document.
35(7) The bureau may convert an existing paper lien to an electronic
36lien upon request of the primary lienholder. The bureau, or a third
37party contracting with the bureau under this section, is authorized
38to collect a fee not to exceed three dollars ($3) for each
39conversion performed under this subdivision. A fee under this
40subdivision may not be charged to a state agency or its agents.
41(8) Notwithstanding section 5 of this chapter, any requirement
42that a security interest or other information appear on a certificate
 2026  IN 1289—LS 6754/DI 92
                                   45
1of title is satisfied by the inclusion of that information in an
2electronic file maintained in an electronic title system.
3     (k) Nothing in this section precludes the bureau from collecting a
4 title fee for the preparation and issuance of a title.
5     (l) The bureau may adopt rules under IC 4-22-2 to implement this
6 section.
7     SECTION 13. IC 14-8-2-48, AS AMENDED BY P.L.251-2023,
8 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2026]: Sec. 48. (a) "Commission", except as provided in this
10 section, refers to the natural resources commission.
11     (b) "Commission", for purposes of IC 14-13-1, has the meaning set
12 forth in IC 14-13-1-1.
13     (c) "Commission", for purposes of IC 14-13-2, has the meaning set
14 forth in IC 14-13-2-2.
15     (d) "Commission", for purposes of IC 14-13-4, has the meaning set
16 forth in IC 14-13-4-1.
17     (e) "Commission", for purposes of IC 14-13-5, has the meaning set
18 forth in IC 14-13-5-1.
19     (f) "Commission", for purposes of IC 14-13-6, has the meaning set
20 forth in IC 14-13-6-2.
21     (g) "Commission", for purposes of IC 14-13-9, has the meaning set
22 forth in IC 14-13-9-2.
23     (h) "Commission", for purposes of IC 14-20-11, has the meaning set
24 forth in IC 14-20-11-1.
25     (i) (h) "Commission", for purposes of IC 14-28-4, has the meaning
26 set forth in IC 14-28-4-1.
27     (j) (i) "Commission", for purposes of IC 14-30-2, has the meaning
28 set forth in IC 14-30-2-2.
29     (k) (j) "Commission", for purposes of IC 14-30-3, has the meaning
30 set forth in IC 14-30-3-2.
31     (l) (k) "Commission", for purposes of IC 14-30-4, has the meaning
32 set forth in IC 14-30-4-2.
33     (m) (l) "Commission", for purposes of IC 14-30.5, has the meaning
34 set forth in IC 14-30.5-1-2.
35     (n) (m) "Commission", for purposes of IC 14-33-20, has the
36 meaning set forth in IC 14-33-20-2.
37     SECTION 14. IC 14-8-2-107, AS AMENDED BY P.L.127-2022,
38 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2026]: Sec. 107. "Fund" has the following meaning:
40(1) For purposes of IC 14-9-5, the meaning set forth in
41IC 14-9-5-1.
42(2) For purposes of IC 14-9-8-21, the meaning set forth in
 2026  IN 1289—LS 6754/DI 92
                                    46
1IC 14-9-8-21.
2(3) For purposes of IC 14-9-8-21.5, the meaning set forth in
3IC 14-9-8-21.5.
4(4) For purposes of IC 14-9-9, the meaning set forth in
5IC 14-9-9-3.
6(5) For purposes of IC 14-12-1, the meaning set forth in
7IC 14-12-1-1.
8(6) For purposes of IC 14-12-2, the meaning set forth in
9IC 14-12-2-2.
10(7) For purposes of IC 14-12-3, the meaning set forth in
11IC 14-12-3-2.
12(8) For purposes of IC 14-13-1, the meaning set forth in
13IC 14-13-1-2.
14(9) For purposes of IC 14-13-2, the meaning set forth in
15IC 14-13-2-3.
16(10) For purposes of IC 14-16-1, the meaning set forth in
17IC 14-16-1-30.
18(11) For purposes of IC 14-19-8, the meaning set forth in
19IC 14-19-8-1.
20(12) For purposes of IC 14-19-11, the meaning set forth in
21IC 14-19-11-3.1.
22(13) For purposes of IC 14-20-11, the meaning set forth in
23IC 14-20-11-2.
24(14) (13) For purposes of IC 14-22-3, the meaning set forth in
25IC 14-22-3-1.
26(15) (14) For purposes of IC 14-22-4, the meaning set forth in
27IC 14-22-4-1.
28(16) (15) For purposes of IC 14-22-5, the meaning set forth in
29IC 14-22-5-1.
30(17) (16) For purposes of IC 14-22-8, the meaning set forth in
31IC 14-22-8-1.
32(18) (17) For purposes of IC 14-22-34, the meaning set forth in
33IC 14-22-34-2.
34(19) (18) For purposes of IC 14-23-3, the meaning set forth in
35IC 14-23-3-1.
36(20) (19) For purposes of IC 14-25-2-4, the meaning set forth in
37IC 14-25-2-4.
38(21) (20) For purposes of IC 14-25-10, the meaning set forth in
39IC 14-25-10-1.
40(22) (21) For purposes of IC 14-25.5, the meaning set forth in
41IC 14-25.5-1-3.
42(23) (22) For purposes of IC 14-31-2, the meaning set forth in
 2026  IN 1289—LS 6754/DI 92
                                   47
1IC 14-31-2-5.
2(24) (23) For purposes of IC 14-25-12, the meaning set forth in
3IC 14-25-12-1.
4(25) (24) For purposes of IC 14-32-8, the meaning set forth in
5IC 14-32-8-1.
6(26) (25) For purposes of IC 14-33-14, the meaning set forth in
7IC 14-33-14-3.
8(27) (26) For purposes of IC 14-33-21, the meaning set forth in
9IC 14-33-21-1.
10(28) (27) For purposes of IC 14-34-6-15, the meaning set forth in
11IC 14-34-6-15.
12(29) (28) For purposes of IC 14-34-14, the meaning set forth in
13IC 14-34-14-1.
14(30) (29) For purposes of IC 14-34-19-1.3, the meaning set forth
15in IC 14-34-19-1.3(a).
16(31) (30) For purposes of IC 14-34-19-1.5, the meaning set forth
17in IC 14-34-19-1.5(a).
18(32) (31) For purposes of IC 14-37-10, the meaning set forth in
19IC 14-37-10-1.
20     SECTION 15. IC 14-20-11 IS REPEALED [EFFECTIVE JULY 1,
21 2026]. (Wendell L. Willkie Memorial Commission).
22     SECTION 16. IC 20-29-6-4.1 IS ADDED TO THE INDIANA
23 CODE AS A NEW SECTION TO READ AS FOLLOWS
24 [EFFECTIVE UPON PASSAGE]: Sec. 4.1. (a) This section applies to
25 collective bargaining between a school employer and the exclusive
26 representative of the school bus drivers employed by the school
27 employer.
28     (b) Collective bargaining described in subsection (a) is limited
29 to the subjects expressly listed in section 4 of this chapter.
30     (c) The prohibited subjects of collective bargaining listed in
31 section 4.5 of this chapter apply to collective bargaining described
32 in subsection (a).
33     SECTION 17. IC 20-32-8.5-2, AS AMENDED BY P.L.186-2025,
34 SECTION 291, IS AMENDED TO READ AS FOLLOWS
35 [EFFECTIVE JULY 1, 2026]: Sec. 2. (a) Except as provided in
36 subsection (b), the plan required by this chapter must include the
37 following:
38(1) Reading skill standards for grade 1 through grade 3.
39(2) A method for making determinant evaluations by grade 3 that
40remedial action is required for a student, including:
41(A) except as provided in subsections (c) and (g), beginning
42with evaluations administered during the 2024-2025 school
 2026  IN 1289—LS 6754/DI 92
                                     48
1year, retention of the student in grade 3 if the student has not
2achieved a passing score on the determinant evaluation of
3reading skills approved by the state board after the student has
4had an opportunity to retake the determinant evaluation at least
5twice in the summer; and
6(B) the use of curricular materials and supplemental materials
7aligned to the science of reading that are designed to address
8deficiencies in reading;
9after other methods of remediation have been evaluated or used,
10or both, if reading skills are below the standard. Appropriate
11consultation with parents or guardians must be part of the plan.
12(3) A requirement that schools notify a student's parent of the
13following:
14(A) The student's assessment results regarding skill level in:
15(i) phonemic awareness;
16(ii) phonics;
17(iii) fluency;
18(iv) vocabulary; and
19(v) comprehension.
20(B) The student's assessment results on the determinant
21evaluation of reading skills approved by the state board.
22(C) Any intervention provided to the student or any remedial
23action taken.
24(4) A requirement that schools monitor the progress of students
25who failed to achieve a valid passing score on the:
26(A) determinant evaluation of reading skills approved by the
27state board; or
28(B) statewide assessment program test.
29(5) A requirement that schools provide reading instruction that
30includes a core reading program aligned with the science of
31reading to all students in kindergarten through grade 8.
32(6) A requirement for the administration of the determinant
33evaluation of reading skills approved by the state board to
34students in grade 2.
35(7) A requirement that all students take the determinant
36evaluation of reading skills approved by the state board until the
37student:
38(A) receives a passing score, regardless of the student's grade
39level; or
40(B) enters grade 7.
41(8) A requirement that a school report the following to the
42department:
 2026  IN 1289—LS 6754/DI 92
                                     49
1(A) The literacy interventions that will be used for students in
2grade 2 who are at risk of not being reading proficient and
3students in grade 3 who do not achieve a valid passing score
4on the determinant evaluation of reading skills approved by
5the state board.
6(B) The literacy interventions in use before the adoption of the
7plan for students in grade 2 who are at risk of not being
8reading proficient and students in grade 3 who do not achieve
9a valid passing score on the determinant evaluation of reading
10skills approved by the state board.
11(C) The literacy interventions in use before the adoption of the
12plan for students who do not achieve a valid passing score on
13the determinant evaluation of reading skills approved by the
14state board.
15(D) The number of students being served by the interventions
16described in clauses (B) and (C).
17(E) The cost of providing the interventions described in
18clauses (B) and (C).
19(F) Any other information requested by the department.
20(9) Requirements for a school in which fewer than seventy
21percent (70%) of students of the school achieved a valid passing
22score on the determinant evaluation of reading skills approved by
23the state board that must include the following:
24(A) Use of curriculum that is:
25(i) based on the science of reading;
26(ii) age appropriate; and
27(iii) approved by the department.
28(B) Employment of the following:
29(i) Before July 1, 2025, an instructional coach who is trained
30in the science of reading, as determined by the department.
31This item expires January 1, 2026.
32(ii) After June 30, 2025, an instructional coach with a
33literacy related endorsement who is trained in the science of
34reading.
35(C) Use of only benchmark, formative, interim, or similar
36assessments that:
37(i) show alignment with Indiana's academic standards; and
38(ii) are approved by the department.
39(D) Use of a screener procured under IC 20-32-5.1-17(j).
40(10) The fiscal impact of each component of the plan, if any. In
41determining whether a component has a fiscal impact,
42consideration shall be given to whether the component will
 2026  IN 1289—LS 6754/DI 92
                                    50
1increase costs to the state or a school corporation or require the
2state or school corporation to reallocate resources.
3    (b) A school may receive a waiver of the requirements provided in
4 511 IAC 6.2-3.1-4(a)(2) if the state board approves an alternative
5 reading plan provided by the school.
6    (c) Except as approved by the department under subsection (g), a
7 student who would otherwise be subject to retention in grade 3 under
8 the plan is not subject to the retention requirement only if the student
9 meets one (1) of the following criteria:
10(1) The student was subject to retention and has been retained in
11grade 3 for one (1) school year.
12(2) The student has an intellectual disability or the student's
13individualized education program specifies that retention is not
14appropriate, and the student's case conference committee has
15determined that promotion to another grade is appropriate.
16(3) The student is an English learner who has received services
17for fewer than two (2) years and a committee consisting of:
18(A) the student's parent;
19(B) a building level administrator or designee;
20(C) a classroom teacher of service;
21(D) an English learner teacher of record, if one exists; and
22(E) an English learner district administrator, if one exists;
23determines that promotion is appropriate based on the
24implementation of research based instructional practices outlined
25in the student's individual learning plan.
26(4) The student received a score of proficient or above proficient
27in grade 3 math on the statewide summative assessment.
28(5) The student:
29(A) has received intensive intervention as determined by the
30department in reading for two (2) or more years; and
31(B) was retained more than one (1) time throughout
32kindergarten, grade 1, or grade 2.
33    (d) A student who is not subject to the retention requirement as
34 provided under subsection (c) must be provided with additional reading
35 instruction that is aligned with the science of reading until the student
36 achieves a passing score on the determinant evaluation of reading skills
37 approved by the state board.
38    (e) Before October 1 of each school year, the department shall:
39(1) identify each incoming student (as defined in section 0.7 of
40this chapter) enrolled in kindergarten in a school in Indiana; and
41(2) notify the parent or guardian of the student of the retention
42requirement under this chapter for grade 3 students who do not
 2026  IN 1289—LS 6754/DI 92
                                    51
1achieve a passing score on the Indiana reading evaluation and
2determination (IRead3).
3     (f) The department shall establish a standard reporting process and
4 reporting window for schools to report students who qualify for an
5 exemption under subsection (c).
6     (g) The department shall establish a registration process for schools
7 to exempt an English language learner who:
8(1) does not achieve a passing score on the determinant
9evaluation of reading skills approved by the state board; and
10(2) attends a school that has a student population comprised of at
11least fifty percent (50%) of English language learners in grade 3,
12as determined by the department;
13 from compliance with the requirements under subsection (a)(2)(A)
14 until the beginning of the 2027-2028 school year. This subsection
15 expires July 1, 2028.
16     SECTION 18. IC 33-33-40-1, AS AMENDED BY P.L.224-2025,
17 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JANUARY 1, 2026 (RETROACTIVE)]: Sec. 1. (a) Jennings County
19 constitutes the eighty-sixth judicial circuit.
20     (b) The Jennings circuit court has a standard small claims and
21 misdemeanor division.
22     (c) The judge of the Jennings circuit court and the judge of the
23 Jennings superior court may jointly appoint one (1) full-time magistrate
24 under IC 33-23-5 to serve the circuit and superior courts. This
25 subsection expires December 31, 2025.
26     (d) A magistrate continues in office until jointly removed by the
27 judge of the Jennings circuit court and the judge of the Jennings
28 superior court. This subsection expires December 31, 2025.
29     (e) (c) Beginning January 1, 2026, the judges of the Jennings circuit
30 and superior court may not appoint a magistrate under IC 33-23-5.
31     (f) (d) A magistrate appointed under this section is terminated by
32 operation of law on December 31, 2025.
33     SECTION 19. IC 36-7-30.2-18, AS ADDED BY P.L.43-2023,
34 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2026]: Sec. 18. (a) The unit shall notify a commander that the
36 commander may recommend a civilian or military representative of the
37 installation in mission sustainment activities to serve as a nonvoting
38 adviser to the plan commission.
39     (b) The notice must inform the commander that a nonvoting adviser:
40(1) is not a member of the plan commission, but is entitled to
41attend and participate in all plan commission meetings;
42(2) is not entitled to a salary, per diem, or reimbursement of
 2026  IN 1289—LS 6754/DI 92
                                    52
1expenses; and
2(3) serves at the pleasure of the legislative body of the unit.
3     (c) The unit shall appoint an individual to the position of nonvoting
4 adviser upon the request of the commander at any time. An individual
5 may only be appointed as a nonvoting adviser upon recommendation
6 of the commander.
7     (d) This subsection applies to a unit that has a plan commission on
8 June 30, 2023. The legislative body of the unit shall send the notice not
9 later than January 1, 2024. This subsection expires July 1, 2025.
10     (e) (d) This subsection applies to a unit that establishes a plan
11 commission after June 30, 2023. The legislative body of the unit shall
12 send the notice not later than one hundred eighty (180) days after the
13 date that the plan commission is established.
14     SECTION 20. IC 36-7-30.2-19, AS ADDED BY P.L.43-2023,
15 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2026]: Sec. 19. (a) The legislative body of the unit must adopt
17 a resolution that:
18(1) acknowledges the requirements of this chapter; and
19(2) designates an employee of the unit to serve as staff liaison
20between the unit and the installation for purposes of coordinating
21the unit's land use activities within the state area of interest.
22     (b) The unit shall contact the commander to:
23(1) discuss coordination between the unit and the installation in
24compliance with this chapter; and
25(2) notify the commander of the staff liaison designated in the
26resolution.
27     (c) This subsection applies to a unit that has a plan commission on
28 June 30, 2023. The legislative body of the unit shall comply with
29 subsections (a) and (b) not later than January 1, 2024. This subsection
30 expires July 1, 2025.
31     (d) (c) This subsection applies to a unit that establishes a plan
32 commission after June 30, 2023. The legislative body of the unit shall
33 comply with subsections (a) and (b) not later than one hundred eighty
34 (180) days after the date that the plan commission is established.
35     SECTION 21. IC 36-7-30.2-20, AS ADDED BY P.L.43-2023,
36 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2026]: Sec. 20. (a) Except as provided in section 21 of this
38 chapter, a unit shall adopt or amend the unit's comprehensive plan,
39 zoning and subdivision ordinances, procedures, and regulations as
40 needed to implement this chapter and IC 36-7-30.3.
41     (b) Except as provided in section 21 of this chapter, this subsection
42 applies to a unit that has a plan commission on June 30, 2023. The unit
 2026  IN 1289—LS 6754/DI 92
                                   53
1 shall amend or repeal and adopt the comprehensive plan, zoning and
2 subdivision ordinances, procedures, and regulations as needed as
3 provided in subsection (a) not later than January 1, 2025. This
4 subsection expires July 1, 2025.
5    (c) (b) This subsection applies to a unit that establishes a plan
6 commission after June 30, 2023. The unit shall adopt a comprehensive
7 plan, zoning and subdivision ordinances, procedures, and regulations
8 as provided in subsection (a) not later than eighteen (18) months after
9 the plan commission is established.
10    SECTION 22. An emergency is declared for this act.
 2026  IN 1289—LS 6754/DI 92