SB 289

                                                *SB0289.1*
                                                                January 23, 2026
            SENATE BILL No. 289
                  _____
   DIGEST OF SB 289 (Updated January 21, 2026 11:02 am - DI 154)
Citations Affected: IC 5-13.
Synopsis: Public depositories. Provides that if two or fewer financial
institutions that have a branch or principal office in a county or in a
county contiguous to the county that is located in Indiana are willing to
accept public funds, the board of finance for the county may: (1) treat
the financial institutions that are located within the county or a county
contiguous to the county that is located in Indiana as if the financial
institutions were not located within the county or a county contiguous
to the county; and (2) designate certain financial institutions to receive
public funds. Makes conforming changes.
Effective: July 1, 2026.
               Walker K, Baldwin,
               Randolph Lonnie M
 January 12, 2026, read first time and referred to Committee on Insurance and Financial
Institutions.
 January 22, 2026, amended, reported favorably — Do Pass.
SB 289—LS 6607/DI 101
                                                                             January 23, 2026
            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.
                   SENATE BILL No. 289
    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 5-13-8-9, AS AMENDED BY P.L.230-2025,
2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]: Sec. 9. (a) All public funds of all political subdivisions
4 other than counties shall be deposited in the designated depositories
5 located in the respective territorial limits of the political subdivisions,
6 except as provided in this section.
7     (b) Each board of finance of a political subdivision:
8(1) that is not a city or town; and
9(2) whose jurisdiction crosses one (1) or more county lines;
10 may limit its boundaries for the purpose of this section to that portion
11 of the political subdivision within the county where its principal office
12 is located.
13     (c) For a political subdivision that is not a county, if there is no
14 principal office or branch of a financial institution located in the county
15 in which the political subdivision is located or in the political
16 subdivision, or if no financial institution with a principal office or
17 branch in the county in which the political subdivision is located or
 SB 289—LS 6607/DI 101
                                      2
1 in the political subdivision will accept public funds under this chapter,
2 the board of finance of the county and the boards of finance of the
3 political subdivisions in the county shall designate one (1) or more
4 financial institutions with a principal office or branch outside of the
5 county or political subdivision, and in the state, as a depository or
6 depositories. For a county, if there is no principal office or branch
7 of a financial institution located in the county or in a county
8 contiguous to the county that is located in Indiana, or if no
9 financial institution with a principal office or branch in the county
10 or in a county contiguous to the county that is located in Indiana
11 will accept public funds under this chapter, the board of finance of
12 the county shall designate one (1) or more financial institutions in
13 Indiana with a principal office or branch outside of the county or
14 outside a county contiguous to the county that is located in Indiana
15 as a depository or depositories.
16     (d) The board of trustees for a hospital organized or operated under
17 IC 16-22-1 through IC 16-22-5 or IC 16-23-1 may invest any money in
18 the hospital fund anywhere in the state with any financial institution
19 designated by the state board of finance as depositories for state
20 deposits.
21     (e) This subsection applies to a political subdivision that is not
22 a county. If two (2) or fewer financial institutions that have a branch
23 or principal office in a the county or in which the political
24 subdivision is located or in the political subdivision are willing to
25 accept public funds, the board of finance for the county or political
26 subdivision may:
27(1) treat the financial institutions that are located within the
28county or political subdivision as if the financial institutions were
29not located within the county or political subdivision; and
30(2) designate one (1) or more financial institutions to receive
31public funds under the requirements of subsection (c).
32     (f) The investing officer shall maintain the deposits as follows:
33(1) In one (1) or more depositories designated for the political
34subdivision, if the sum of the monthly average balances of all the
35transaction accounts for the political subdivision does not exceed
36one hundred thousand dollars ($100,000).
37(2) In each depository designated for the political subdivision, if
38subdivision (1) does not apply and fewer than three (3) financial
39institutions are designated by the local board of finance as a
40depository.
41(3) In at least two (2) depositories designated for the political
42subdivision, if subdivision (1) does not apply and at least three (3)
 SB 289—LS 6607/DI 101
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1financial institutions are designated by the local board of finance
2as a depository.
3    (g) Subject to subsections (c) and (e), subsections (c), (e), and (h),
4 a board of finance of a political subdivision that is not a:
5(1) city;
6(2) town; or
7(3) hospital described in subsection (d);
8 shall invest the public funds of the political subdivision in a designated
9 depository located anywhere in the county in which the political
10 subdivision is located. For purposes of this section, the territorial limits
11 of a political subdivision that is not a city, town, or local hospital
12 authority or corporation are the territorial limits of the county in which
13 the principal office of the board of finance is located.
14    (h) This subsection applies to a county. If two (2) or fewer
15 financial institutions that have a branch or principal office in a
16 county or in a county contiguous to the county that is located in
17 Indiana are willing to accept public funds, the board of finance for
18 the county may:
19(1) treat the financial institutions that are located within the
20county or a county contiguous to the county that is located in
21Indiana as if the financial institutions were not located within
22the county or a county contiguous to the county; and
23(2) designate one (1) or more financial institutions to receive
24public funds under the requirements of subsection (c).
 SB 289—LS 6607/DI 101
                                4
                    COMMITTEE REPORT
Mr. President: The Senate Committee on Insurance and Financial
Institutions, to which was referred Senate Bill No. 289, has had the
same under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill be AMENDED as
follows:
Page 1, delete lines 13 through 17, begin a new paragraph and
insert:
"(c) For a political subdivision that is not a county, if there is no
principal office or branch of a financial institution located in the county
in which the political subdivision is located or in the political
subdivision, or if no financial institution with a principal office or
branch in the county in which the political subdivision is located or
in the political subdivision will accept public funds under this chapter,
the board of finance of the county and the boards of finance of the
political subdivisions in the county shall designate one (1) or more
financial institutions with a principal office or branch outside of the
county or political subdivision, and in the state, as a depository or
depositories. For a county, if there is no principal office or branch
of a financial institution located in the county or in a county
contiguous to the county that is located in Indiana, or if no
financial institution with a principal office or branch in the county
or in a county contiguous to the county that is located in Indiana
will accept public funds under this chapter, the board of finance of
the county shall designate one (1) or more financial institutions in
Indiana with a principal office or branch outside of the county or
outside a county contiguous to the county that is located in Indiana
as a depository or depositories.".
Page 2, delete lines 1 through 3.
Page 2, line 9, after "(e)" insert "This subsection applies to a
political subdivision that is not a county.".
Page 2, line 10, strike "or" and insert "in which the political
subdivision is located or in the".
Page 2, line 31, strike "subsections (c) and (e)," and insert
"subsections (c), (e), and (h),".
Page 2, delete line 42, begin a new paragraph and insert:
"(h) This subsection applies to a county. If two (2) or fewer
financial institutions that have a branch or principal office in a
county or in a county contiguous to the county that is located in
Indiana are willing to accept public funds, the board of finance for
the county may:
SB 289—LS 6607/DI 101
                              5
(1) treat the financial institutions that are located within the
county or a county contiguous to the county that is located in
Indiana as if the financial institutions were not located within
the county or a county contiguous to the county; and
(2) designate one (1) or more financial institutions to receive
public funds under the requirements of subsection (c).".
   Delete page 3.
and when so amended that said bill do pass.
   (Reference is to SB 289 as introduced.)
                                          BALDWIN, Chairperson
Committee Vote: Yeas 7, Nays 1.
SB 289—LS 6607/DI 101