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Home News New Indiana Legislation Targets Foreign Adversaries, Expands Attorney General’s Role

New Indiana Legislation Targets Foreign Adversaries, Expands Attorney General’s Role

by Celia

Indiana is considering new legislation that would ban the state from entering into contracts with businesses located in countries deemed foreign adversaries and expand the oversight role of the attorney general’s office.

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House Bill 1032, introduced by Rep. Craig Haggard, R-Mooresville, seeks to strengthen existing restrictions on investments and contracts with entities from countries such as China, Cuba, Iran, North Korea, Russia, and Venezuela. These countries are currently labeled as foreign adversaries in state and federal code. The bill also allows the governor to add countries to this list if they are deemed a threat to critical infrastructure.

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The legislation builds on previous measures passed in the last three legislative sessions. These measures have already restricted foreign adversaries from acquiring or leasing property in Indiana, banned public universities from contracting with entities in these countries, prohibited foreign businesses from buying agricultural land, and required state pension funds to divest from China-related holdings.

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Haggard’s bill aims to close loopholes in these existing laws and increase penalties for violations. The bill was first heard by the House Judiciary Committee on Monday, but a vote to advance it to the full chamber is not expected until next week.

Haggard said his goal is to reduce the influence of countries that could pose a threat to the United States and Indiana. “We do not want the people on the foreign adversary list to be involved with contracts and services,” he said. He also highlighted the potential coercion faced by individuals from countries like China, noting the need to protect against such influences.

A similar proposal by Sen. Mike Bohacek, R-Michiana Shores, would require the governor to terminate economic development deals with companies based in adversary countries and prohibit the Indiana Economic Development Corp. (IEDC) from establishing offices in those countries. Senate Bill 20 has yet to be scheduled for a hearing.

Under Haggard’s bill, the state would be prohibited from signing agreements with companies controlled by citizens of adversary nations or headquartered in those countries. The bill does not apply to dual citizens of the U.S. and a flagged country. It also requires individuals and businesses from foreign adversaries to divest from any Indiana entity by January 1, 2026.

The bill would eliminate current provisions allowing companies from foreign adversaries to enter critical infrastructure agreements as long as they do not control the infrastructure. Instead, it would create a blanket ban on such agreements.

Additionally, the bill mandates the creation of a “foreign agent registry” overseen by the attorney general’s office. Agents of foreign principals, defined as individuals or entities representing the interests of foreign governments or businesses, would be required to register with the state. They would also need to disclose their status when interacting with state agencies or public officials and include disclaimers on disseminated materials.

Erin Tuttle, legislative and policy director for the Indiana Attorney General’s office, clarified that the bill does not prohibit legal activities or limit freedom of expression. It simply requires registration and disclosure.

The bill would allow the attorney general’s office to investigate and issue subpoenas if violations are suspected. Penalties for violations include injunctions, repayment of gains, civil penalties of up to $100,000, and other damages.

A legislative fiscal analysis estimates that the cost for staffing and maintaining the registry will require approximately $563,000 in state funds in fiscal year 2026 and $418,000 in the following year. Haggard noted that these costs are largely upfront, with future appropriations expected to be lower as the registry becomes self-funding through civil collections.

Staff from the attorney general’s office emphasized that the foreign agent registry and other investigatory actions are intended to streamline reporting and enforcement, not duplicate existing efforts.

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