Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1179
AN ACT to amend the Indiana Code concerning higher education.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 21-30-7 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]:
Chapter 7. Disclosure of Foreign Gifts and Contracts
Sec. 1. As used in this chapter, "affiliate organization" means
any entity under the control of, or established for the benefit of, a
state educational institution, including a direct-support
organization.
Sec. 2. As used in this chapter, "contract" means an agreement
for the acquisition of property or services by purchase, lease, or
barter for the direct benefit or use of either of the parties.
Sec. 3. As used in this chapter, "direct-support organization"
means an organization that is organized and operated to receive,
hold, invest, and administer property and to make expenditures to
or for the benefit of a state educational institution or for the benefit
of a research and development park or a research and development
entity affiliated with a state educational institution.
Sec. 4. As used in this chapter, "foreign adversary" includes the
following:
(1) A foreign government listed in 15 CFR 7.4.
(2) A country designated as a threat to critical infrastructure
by the governor under IC 1-1-16-8.
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Sec. 5. As used in this chapter, "foreign government" means the
government, including an agent of the government, of any country,
nation, or group of nations, or any province or other political
subdivision of any country or nation, other than the government of
the United States or a state, territory, or protectorate of the United
States.
Sec. 6. As used in this chapter, "foreign source" means any of
the following:
(1) A foreign government or an agency of a foreign
government.
(2) A legal entity, governmental or otherwise, created solely
under the laws of a foreign nation or group of nations.
(3) An individual who is not a citizen or a national of the
United States or a territory or protectorate of the United
States.
(4) A partnership, an association, a corporation, an
organization, or any other combination of persons, including
a subsidiary of an entity described in this subdivision,
organized under the laws of, or having its principal place of
business in, a foreign adversary.
(5) An agent, including a subsidiary or an affiliate of a foreign
legal entity, acting on behalf of a foreign source.
(6) A political party of a foreign adversary or an individual
who is a member of a political party of a foreign adversary.
Sec. 7. As used in this chapter, "gift" means any gift, grant,
endowment, award, or donation of money or property of any kind,
or any combination thereof, including a conditional or
unconditional promise, pledge, or agreement to make a gift,
endowment, award, or donation.
Sec. 8. As used in this chapter, "grant" means a transfer of
money for a specified purpose, including a conditional gift.
Sec. 9. As used in this chapter, "political party of a foreign
adversary" means an organization or combination of individuals
organized for the purpose of, or engaged in any activity devoted in
whole or in part to, either of the following:
(1) The establishment, administration, control, or the
acquisition of the administration or control, of the
government of a foreign adversary.
(2) The furtherance or influencing of the political or public
interest, policies, or relations of the government of a foreign
adversary.
Sec. 10. (a) A state educational institution shall disclose to the
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commission any gift of any value received directly or indirectly
from any foreign source located in a foreign adversary as follows:
(1) For a disclosable gift received after December 31, 2020,
and before July 1, 2024, not later than September 1, 2024.
(2) For a disclosable gift received after June 30, 2024,
biannually on January 1 and July 1 of each subsequent year.
(b) A gift received from a foreign source through an
intermediary or affiliate organization is considered an indirect gift
to a state educational institution and is subject to the disclosure
required by subsection (a).
Sec. 11. Unless otherwise prohibited or deemed confidential
under state or federal law, a disclosure under section 10 of this
chapter must include the following information:
(1) The date of the gift.
(2) The amount of the gift.
(3) The purpose of the gift.
(4) The identification of the persons for whom the gift is
explicitly intended to benefit.
(5) Any applicable conditions, requirements, restrictions, or
terms made part of the gift.
(6) The name and country of residence or domicile of the
foreign source.
(7) The name and mailing address of the state educational
institution receiving the gift.
(8) If applicable, the date of termination of the gift.
Sec. 12. The commission shall establish and maintain a website
to enable the public to access information concerning gifts
disclosed by state educational institutions under section 10 of this
chapter.
Sec. 13. (a) A state educational institution shall disclose to the
commission any contract of any value entered into directly or
indirectly with any foreign source located in a foreign adversary as
follows:
(1) For a disclosable contract entered into after December 31,
2020, and before July 1, 2024, not later than September 1,
2024.
(2) For a disclosable contract entered into after June 30, 2024,
biannually on January 1 and July 1 of each subsequent year.
(b) A contract entered into with a foreign source through an
intermediary or affiliate organization is considered an indirect
contract with a state educational institution and is subject to the
disclosure required by subsection (a).
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Sec. 14. Unless otherwise prohibited or deemed confidential
under state or federal law, a disclosure under section 13 of this
chapter must include the following information:
(1) The date of the contract.
(2) The amount of the contract.
(3) The purpose of the contract.
(4) The identification of the persons for whom the contract is
explicitly intended to benefit.
(5) Any applicable conditions, requirements, restrictions, or
terms made part of the contract.
(6) A copy of the contract.
(7) The name and country of residence or domicile of the
foreign source.
(8) The name and mailing address of the state educational
institution entering into the contract.
(9) If applicable, the date of termination of the contract.
Sec. 15. The commission shall establish and maintain a website
to enable the public to access information concerning contracts
disclosed by state educational institutions under section 13 of this
chapter.
Sec. 16. (a) The commission may:
(1) audit; or
(2) contract with a qualified person to audit;
a state educational institution's use of a gift disclosed under section
10 of this chapter that the state educational institution received
after June 30, 2021, and before July 1, 2024.
(b) The commission may:
(1) audit; or
(2) contract with a qualified person to audit;
a state educational institution's use of the proceeds of a contract
disclosed under section 13 of this chapter that the state educational
institution entered into after June 30, 2021, and before July 1,
2024.
Sec. 17. The commission shall send copies of all disclosures
described in sections 10 and 13 of this chapter to the attorney
general, in a manner prescribed by the attorney general.
Sec. 18. (a) The attorney general may bring a civil action against
a state educational institution that has failed to comply with this
chapter:
(1) based upon information known to the attorney general; or
(2) at the request of:
(A) a member of the general assembly;
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(B) the governor;
(C) a member of the commission;
(D) a member of the Indiana state board of education; or
(E) an Indiana taxpayer;
if the person described in this subdivision submits a signed
affidavit affirming that a state educational institution is not in
compliance with the requirements of this chapter.
(b) If the attorney general prevails in an action brought under
this section, the attorney general is entitled to injunctive relief to
require the state educational institution to comply with the
requirements of this chapter. In addition, a state educational
institution that is found to have knowingly or willingly failed to
comply with the requirements of this chapter must pay to the
attorney general:
(1) the costs incurred in bringing the civil action under this
section; and
(2) any associated costs of investigation and enforcement.
SECTION 2. IC 21-36-1-1.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 1.3. "Foreign adversary" includes the following:
(1) A foreign government listed in 15 CFR 7.4.
(2) A country designated as a threat to critical infrastructure
by the governor under IC 1-1-16-8.
SECTION 3. IC 21-36-1-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 1.5. "Intellectual property" means all original data,
findings, or other products of the mind or intellect commonly
associated with claims, interests, and rights that are protected
under trade secret, patent, trademark, copyright, or unfair
competition law.
SECTION 4. IC 21-36-1-2.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 2.3. "Prohibited person" means the following:
(1) A business entity organized under the laws of a foreign
adversary.
(2) A business entity headquartered in a foreign adversary.
(3) A business entity or other entity, including a governmental
entity, that is owned or controlled by citizens of, or is directly
controlled by the government of, a foreign adversary.
The term includes an agent, trustee, or fiduciary of a prohibited
person.
SECTION 5. IC 21-36-5 IS ADDED TO THE INDIANA CODE AS
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A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]:
Chapter 5. Transfer of Intellectual Property
Sec. 1. This chapter applies to the following state educational
institutions:
(1) Indiana University.
(2) Purdue University.
(3) Indiana State University.
(4) Ball State University.
(5) Ivy Tech Community College.
(6) University of Southern Indiana.
(7) Vincennes University.
Sec. 2. The board of trustees of a state educational institution
shall adopt a policy that prohibits the transfer, licensing, or
sublicensing of intellectual property created or developed using the
state educational institution's resources to a prohibited person.
SECTION 6. IC 21-39-8.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]:
Chapter 8.5. Official Public Statements
Sec. 1. As used in this chapter, "protected expressive activity"
has the meaning set forth in IC 21-39-8-5.
Sec. 2. The board of trustees of each state educational institution
shall adopt a policy prohibiting an employee or contractor of the
state educational institution from making a public statement in the
person's official capacity as a state educational institution
employee or contractor unless the statement:
(1) relates to the business or operation of the state educational
institution, or to a state educational institution sponsored
event; or
(2) has been approved by the board of trustees of the state
educational institution.
The policy may not prohibit the exercise of any protected
expressive activity that is not made in the employee's or
contractor's official capacity.
SECTION 7. IC 21-49-1 IS REPEALED [EFFECTIVE JULY 1,
2024]. (Disclosures by Postsecondary Educational Institutions of
Foreign Gifts and Contracts).
SECTION 8. IC 21-49-2.7 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]:
Chapter 2.7. Prohibition on the Use of State Funds and
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Resources
Sec. 1. As used in this chapter, "foreign terrorist organization"
refers to an organization designated by the Secretary of State of
the United States as a foreign terrorist organization under 8 U.S.C.
1189.
Sec. 2. As used in this chapter, "state sponsor of terror" means
a country determined by the Secretary of State of the United States
to have repeatedly provided support for acts of international
terrorism.
Sec. 3. The board of trustees of each state educational institution
shall adopt a policy that prohibits the use of any state funds or
resources to:
(1) engage or contract with an individual associated with a
foreign terrorist organization or a state sponsor of terror; or
(2) support the activities of a foreign terrorist organization or
a state sponsor of terror.
HEA 1179 — Concur Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
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