HB 1268 changesIndiana defense matters.

What changed

+226 / −761 words · LargeConfidence: high

This version transforms HB 1268 from an engrossed bill to an enrolled act, incorporating committee amendments and establishing a comprehensive framework for Indiana's new FAA-designated unmanned aircraft systems (UAS) test site. The most significant changes create an entirely new statutory chapter (IC 5-28-44) governing test site operations, including exemptions from state procurement and contracting laws for the operating partner, dedicated bank account requirements for test site funds, and biannual reporting obligations to the defense task force and budget committee beginning December 2026. The bill also modifies the Indiana defense task force structure by adding legislative appointees from both chambers, designating the adjutant general as a nonvoting member, clarifying that the chairperson votes only to break ties, and streamlining annual reporting requirements. Technical changes include removing the committee report appendix and converting the preamble from engrossed to enrolled act format with an emergency clause for immediate effect upon passage.

Change log

• SECTION 5 > (1)

  addedhigh confidence

  New reporting requirement for expenditures from bank account established under section 7

  This provision adds a new requirement to itemize expenditures from a bank account established under section 7 of this chapter. The itemization must cover all expenditures since the last report and must be submitted to both the budget committee and the Indiana defense task force. This appears to be part of a new reporting framework for tracking how funds are being spent.

• SECTION 4 > (b)

  modifiedhigh confidence

  Technical/conforming change

  This section removes a comma after 'office of defense development' in the reporting requirement sentence. The substance of the reporting obligation remains unchanged.

• PREAMBLE >cont.

  removedhigh confidence

  Technical/conforming change

  This section contained standard legislative formatting instructions that explained how text styling indicated amendments, additions, deletions, and conflict reconciliation in statutory text. The removal of this explanatory preamble is a technical matter relating to document formatting conventions rather than substantive legislative content.

• APPENDIX

  removedhigh confidence

  Deletion of committee report

  This section removal eliminates the entire committee report of the Veterans Affairs and Public Safety Committee for HB 1268. The committee report contained recommended amendments to the bill, including sections modifying task force membership, chairperson designation, and voting procedures under IC 4-3-21.5. The deletion of this appendix removes the formal record of the committee's vote (12 yeas, 0 nays) and its recommendations to amend the bill by adding three new sections effective July 1, 2026.

• APPENDIX >cont.

  removedhigh confidence

  Entire amendment motion deleted from appendix

  The appendix previously contained a motion to amend Engrossed House Bill 1268, which proposed modifications to IC 4-3-21.5-4 regarding task force membership composition. The motion specified deletions and insertions affecting pages 1-2 of the bill, including changes to how various defense network representatives are designated as task force members. This entire amendment motion text has been removed from the appendix.

• SECTION 1 > (5)

  addedhigh confidence

  New member position added to be appointed by the speaker of the house

  This section adds a new member to an unspecified body or commission. The member will be appointed by the speaker of the house. No additional details about the appointing body, term limits, or qualifications are provided in this section.

• SECTION 1 > (b)

  addedhigh confidence

  Adjutant general added to task force as nonvoting member

  This section adds the adjutant general of the Indiana National Guard (or their designee) to the task force as a nonvoting member. This creates a new membership position that did not previously exist in the task force composition.

• SECTION 3

  addedhigh confidence

  Chairperson voting rights clarified for defense task force tie-breaking

  This section amends IC 4-3-21.5-10 to clarify voting procedures for a task force, effective July 1, 2026. A majority vote of voting members remains required for task force action. The amendment explicitly states that the chairperson is only considered a voting member when deciding tie votes, rather than participating in all votes.

• SECTION 5

  addedhigh confidence

  New chapter establishes unmanned aircraft systems test site framework

  This section adds an entirely new chapter (IC 5-28-44) to Indiana law concerning unmanned aircraft systems test sites. The legislative intent is to advance Indiana's position in unmanned aircraft technology, create opportunities for citizens in related industries, and support federal research, development, and testing for commerce and national security purposes. The chapter takes effect immediately upon passage.

• SECTION 5 > (1)

  addedhigh confidence

  New finding: Indiana designated as FAA UAS test site effective January 8, 2026

  This section adds a legislative finding that the Federal Aviation Administration (FAA) announced Indiana's designation as a test site for unmanned aircraft systems (UAS) on January 8, 2026. This is a new provision with no prior text, establishing a factual basis regarding Indiana's role in UAS testing.

• SECTION 5 > (2)

  addedhigh confidence

  New finding added describing FAA test site purposes for UAS technology assessment and integration

  This section adds a legislative finding describing the Federal Aviation Administration's position on UAS test sites. The finding states that these test sites help assess emerging technologies for cargo delivery, Beyond Visual Line of Sight operations, and multiple simultaneous UAS operations. According to the added text, these sites inform safety and security decisions while facilitating safe commercialization and full integration of unmanned aircraft systems into national airspace.

• SECTION 5 > (3)

  addedhigh confidence

  New subsection added describing Indiana's competitive designation as test site

  This new subsection documents that Indiana's designation as a test site resulted from a competitive process against other states. It specifies that the designation came from a joint application between the corporation and the operating partner, and notes that the proposal was developed under a contract between these entities to pursue similar federal programs.

• SECTION 5 > (4)

  addedhigh confidence

  New exemption from state laws for FAA UAS test site operators during federal program participation

  This new provision creates a regulatory exemption for the Indiana UAS (unmanned aircraft system) test site and its operating partner while participating in the federal FAA UAS Test Site Program. The exemption rationale is to avoid duplicating federal and state regulatory schemes, citing the substantial federal reporting and compliance requirements. Subject to budget committee review, the corporation running the test site and its nonprofit operating partner are exempted from unspecified state laws for purposes of operating the test site during the period of federal program participation.

• SECTION 5 > (1)

  addedhigh confidence

  Technical/conforming change

  This section adds a subheading label '(1) State procurement requirements' with no accompanying substantive text. Without additional context showing what substantive content appears under this heading, this appears to be a structural organizational element.

• SECTION 5 > (2)

  addedmedium confidence

  New subsection heading added for state contracting requirements

  This change adds a new subsection heading titled "State contracting requirements." The heading appears to organize content related to state contracting, though no substantive text accompanies this heading in the provided excerpt. This is a structural addition that may introduce new requirements or organize existing provisions.

• SECTION 5 > (3)

  addedhigh confidence

  New requirement: Operating partner must maintain separate, segregated bank account for test site funds

  This section creates a new requirement for an operating partner to establish and maintain a bank account that is separate and segregated from all other accounts under their control. All funds for the test site must be administered through this dedicated account. This appears to be a financial control and transparency measure for test site operations.

• SECTION 5 > (b)

  addedhigh confidence

  Operating partner authorized to administer and deposit test site revenues and funding

  This new subsection grants the operating partner authority to administer and deposit all income, earnings, and receipts generated from test site operations into a bank account. The provision explicitly includes state or federal funding received through contracts, grants, or loans as part of the funds the operating partner may manage.

• SECTION 5 > (c)

  addedhigh confidence

  New subsection authorizes operating partner expenditures and revenue transfers for test site operations

  This new subsection grants the operating partner authority to spend money from the bank account on test site operations, including administration, staffing, equipment, activities, communications, and marketing. It also permits the operating partner to transfer revenue from the account to the corporation or other state agencies for specified purposes (though the specific purposes are not included in the provided text).

• SECTION 5 > (1)

  addedhigh confidence

  New authority added to procure UAS technology for state use

  This section newly authorizes procurement of UAS (Unmanned Aircraft Systems) technology for use by the state. No previous language existed in this section. The provision is added without qualification or limitation on the type or scope of UAS technology that may be procured.

• SECTION 5 > (2)

  addedhigh confidence

  New authority added to pursue federal funding for UAS-related activities

  This section adds a new provision authorizing the pursuit of federal funding for activities related to unmanned aircraft systems (UAS) that benefit the state. This represents a new enumerated power or duty being added to the statute. No previous text existed for comparison, as this is an entirely new subsection.

• SECTION 5 > (3)

  addedhigh confidence

  New provision added to support economic development for UAS research or manufacturing

  This section adds a new subsection (3) that authorizes support for economic development activities specifically related to unmanned aircraft systems (UAS) research or manufacturing. The provision is entirely new with no previous comparable text.

• SECTION 5 > (d)

  addedhigh confidence

  New recordkeeping, audit, and reporting requirements for operating partner established

  This section creates new obligations for an operating partner to maintain complete records of funds received and disbursed. The operating partner must submit an annual report to the corporation board by July 1, subject to audit requirements. Additionally, the state examiner or designated examiners are authorized to conduct full audits of test site records and receipts, and the operating partner must fulfill additional duties to be specified.

• SECTION 5 > (1)

  addedhigh confidence

  New duty for IEDC to assist with UAS sector economic development

  This section adds a new responsibility requiring a state entity (likely the Indiana Economic Development Corporation based on context) to respond to requests from economic development organizations at local, regional, or state levels. The assistance relates to economic activities aimed at attracting companies or developing clusters of activity specifically within the unmanned aircraft systems (UAS) sector.

• SECTION 5 > (2)

  addedhigh confidence

  New requirement added to respond to state agency requests for UAS procurement expertise

  This provision adds a new responsibility requiring an entity to respond to requests from state agencies seeking expertise related to the procurement of unmanned aircraft systems (UAS) technology. The language does not specify which entity bears this responsibility, as the broader context of SECTION 5 is not provided. This appears to establish a consultative or advisory role for UAS technology acquisition by state agencies.

• SECTION 5 > (3)

  addedhigh confidence

  Operating partner authorized to respond to state agency requests for UAS test activities and manage test site operations

  This new provision assigns the operating partner responsibility for responding to state agency requests for assistance in developing unmanned aircraft system (UAS) test activities within specific economic sectors. It also establishes that the operating partner manages day-to-day test site operations under corporation supervision, including FAA safety and maintenance requirements. The corporation may enter agreements with the operating partner to fulfill chapter requirements and federal agency obligations.

• SECTION 5 > (b)

  addedhigh confidence

  New subsection authorizes corporation resource dedication for test site operations and establishes biannual reporting requirement

  This new subsection grants the corporation authority to dedicate resources—including staff, administrative support, and direct financial support—to the test site as it deems necessary. Additionally, it establishes a reporting requirement beginning December 1, 2026, with subsequent reports due twice yearly (June 1 and December 1) from both the operating partner and the corporation to the Indiana defense task force and budget committee.

• SECTION 5 > (2)

  addedmedium confidence

  New reporting requirement added for anticipated six-month expenditures

  This section introduces a new requirement to report anticipated expenditures for the subsequent six months. Without context of the broader reporting framework, this appears to be adding a forward-looking financial disclosure obligation. The requirement is newly created as part of this bill.

• SECTION 5 > (3)

  addedhigh confidence

  New subsection heading added for funding sources

  This adds a new subsection heading titled "Funding sources for expenditures." No substantive text follows this heading in the provided excerpt, so the actual funding provisions are not shown. This appears to be a structural addition organizing content related to how expenditures will be funded.

• SECTION 5 > (4)

  addedhigh confidence

  New reporting requirement added for information requested by budget committee or defense task force

  This section adds a new subsection (4) creating an obligation to provide information when requested by either the budget committee or the Indiana defense task force. This is a catch-all provision allowing these bodies to request additional information beyond other enumerated reporting requirements. The scope of requestable information is unlimited, subject only to the discretion of the requesting committee or task force.

• SECTION 6

  addedhigh confidence

  Emergency clause added to enable immediate effect upon passage

  This newly added section declares an emergency for the act, which typically allows the legislation to take effect immediately upon passage rather than on the standard effective date. The section includes signature lines for the Speaker of the House, President of the Senate, President Pro Tempore, and Governor, along with spaces for date and time of signing.

• PREAMBLE

  modifiedhigh confidence

  Bill digest and legislative history replaced with enrolled act printing code and enacting clause

  The preamble has been rewritten from an engrossed bill format containing a digest, synopsis, sponsor information, and detailed legislative procedural history into an enrolled act format. The new version removes all substantive summaries of the bill's contents and legislative tracking information. Instead, it now contains only standardized printing code instructions explaining how amendments and additions will appear typographically, followed by the formal enacting clause.

• SECTION 4

  modifiedhigh confidence

  Defense task force annual reporting requirement narrowed from three subsections to one

  Section 4 originally established three reporting and coordination requirements: an annual May 1 report from the defense task force identifying spending priorities, an annual August 1 report from the corporation's office detailing how those priorities were funded, and a mandate that the office incorporate the task force's priorities into its annual budget. The revised section retains only the first requirement—the May 1 report from the task force to the corporation and budget committee identifying priorities and supplemental funding. The reciprocal August 1 expenditure report and the budget incorporation mandate were removed.

• SECTION 2

  modifiedhigh confidence

  Annual defense task force budget reporting requirement replaced with task force chairperson voting rules

  This section completely replaces a requirement for the Indiana defense task force to submit annual reports on spending priorities with provisions governing the task force chairperson's voting authority. The original text mandated annual May 1 reports to the corporation's office of defense development and budget committee identifying priorities for the upcoming fiscal year and accounting for supplemental funding. The new text instead establishes that the governor designates a chairperson who presides at meetings and votes only to break ties. The effective date also shifts from upon passage to July 1, 2026.

• SECTION 1 > (4)

  modifiedhigh confidence

  Task force membership shifts from adjutant general to senate-appointed member

  This section replaces the adjutant general of the Indiana National Guard (or designee) as a nonvoting task force member with one member appointed by the president pro tempore of the senate. The new member's voting status is not specified, whereas the previous member was explicitly nonvoting.

• SECTION 1

  modifiedhigh confidence

  Task force members designated as 'voting members' and subsection (a) created

  This section adds the designation 'voting members' to describe the composition of the task force and creates a new subsection (a). The change suggests the statute may be reorganized to distinguish voting members from other categories of members, though no non-voting members are shown in this excerpt. The substantive composition of the task force remains unchanged in this portion.