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A pair of recently filed bills seek to limit the state from making deals and contracting with businesses located in countries considered to be foreign adversaries.
The bills are focused on reducing the influence of countries potentially posing a threat to the United States and Indiana. The state recognizes China (including Hong Kong), Cuba, Iran, North Korea, Russia and Venezuela as foreign adversaries as named in federal code.
Lawmakers began filing bills last week ahead of the start of the upcoming legislative session starting Jan. 8. The bills will soon after be introduced and then will head to committee.
Sen. Mike Bohacek, R-Michiana Shores, authored Senate Bill 20, which would require the governor to terminate economic development deals with companies or firms based in an adversary country. The bill also would prohibit the Indiana Economic Development Corp. from establishing international offices in those countries.
In the other chamber, Rep. Craig Haggard, R-Mooresville, proposed a similar bill that would prevent the state from signing agreements with companies that are majority-controlled by citizens or residents of adversary nations or are headquartered within one. House Bill 1032 does not include people who are dual citizens between the U.S. and a flagged country.
The attorney general could investigate and issue subpoenas if his office believes there is a violation. Potential penalties in the bill include injunctions, repayment of gains, a civil penalty of up to $100,000 and other damages.
Similar legislation has gained traction in Indiana.
The Legislature in 2024 passed a law prohibiting purchasers from “adversarial countries” from owning or leasing Hoosier farmland. The bill had bipartisan support and was championed by Lt. Gov. Suzanne Crouch.
Overseers of state pension funds are required to divest from China-related holdings due to “the risk to the security and welfare” of the country.
And another law prohibits Indiana’s critical infrastructure, such as roads, energy, water and communications systems, from contracting with certain entities including those in China. Cities and towns are also barred from sister-city agreements, or economic and cultural collaboration partnerships, with communities in the country, among others.
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