Ind. Code ch. 32-22-3.5

in effect

Ind. Code § 32-22-3.5-1 "Acting as an agent of a foreign adversary"

Sec. 1. (a) As used in this chapter, "acting as an agent of a foreign adversary" means to knowingly engage in conduct at the direction of or under the control of a foreign adversary that materially advances the foreign adversary's strategic, intelligence, or military objectives. (b) The term does not include the ownership or operation of a business entity that engages solely in ordinary commercial activities for profit and that is not subject to the direction, control, or material influence of the foreign adversary with respect to the conduct at issue. As added by P.L.131-2026, SEC.5.

Ind. Code § 32-22-3.5-2 "Agent of a foreign adversary"

Sec. 2. As used in this chapter, "agent of a foreign adversary" means a person: (1) who either: (A) is an agent, a representative, an employee, or a servant; or (B) acts in any capacity at the order, request, or under the direction or control; of the government of a foreign adversary; and (2) whose activities are directly or indirectly financed in whole or in part by the government of a foreign adversary. As added by P.L.131-2026, SEC.5.

Ind. Code § 32-22-3.5-3 "Business entity"

Sec. 3. As used in this chapter, "business entity" means: (1) a corporation, professional corporation, nonprofit corporation, limited liability company, partnership, or limited partnership; or (2) the equivalent of any entity described in subdivision (1). As added by P.L.131-2026, SEC.5.

Ind. Code § 32-22-3.5-4 "Controlling person"

Sec. 4. As used in this chapter, "controlling person" means: (1) a beneficial owner (as defined in IC 23-1-20-3.5) of at least fifty-one percent (51%) of the shares of a business entity; (2) an officer, a director, or any other individual who possesses inside information about a business entity because of the officer, director, or other individual's relationship with the business entity; or (3) a person, individually or as a member of a group, who has the ability to directly or indirectly affect a business entity's management or policies. As added by P.L.131-2026, SEC.5.

Ind. Code § 32-22-3.5-5 "Foreign adversary"

Sec. 5. As used in this chapter, "foreign adversary" includes the following: (1) The People's Republic of China. (2) The Russian Federation. (3) The People's Republic of North Korea. (4) The Islamic Republic of Iran. (5) A foreign government listed in 15 CFR 791.4. (6) A country designated as a threat to critical infrastructure by the governor under IC 1-1-16-8. As added by P.L.131-2026, SEC.5.

Ind. Code § 32-22-3.5-6 "Prohibited person"

Sec. 6. (a) As used in this chapter, "prohibited person" includes the following: (1) An individual who is a citizen of a foreign adversary. (2) An individual who is domiciled in a foreign adversary. (3) A business entity organized under the laws of a foreign adversary. (4) A business entity headquartered in a foreign adversary. (5) A business entity with a controlling person that is one (1) of the following: (A) An individual who is a citizen of a foreign adversary. (B) An individual who is domiciled in a foreign adversary. (C) A business entity or other entity, including a governmental entity, that is owned or controlled by an individual described in subdivision (1) or (2), or is directly controlled by the government of a foreign adversary. The term, as used in subdivisions (1), (2), (5)(A), and (5)(B), does not include an individual who holds dual citizenship with a foreign adversary and the United States, an individual who is a citizen or lawful permanent resident of the United States, or an individual who has been granted asylum in the United States. (b) The term includes an agent, a trustee, or a fiduciary acting on behalf of a prohibited person. As added by P.L.131-2026, SEC.5.

Ind. Code § 32-22-3.5-7 Prohibition on ownership of real property

Sec. 7. Except as provided in section 7.5 of this chapter, after June 30, 2026, a prohibited person may not do any of the following: (1) Acquire by grant, purchase, devise, descent, or otherwise any real property located in Indiana. (2) Acquire by grant, purchase, devise, descent, or otherwise any mineral right or water or riparian right on any real property located in Indiana. (3) Enter into a new lease agreement as a lessee for any real property located in Indiana. This subdivision does not apply to a lease agreement to which the following apply: (A) The real property that is the subject of the lease agreement will be used only for residential purposes. (B) The lease agreement is for a term of not more than twenty-four (24) months. (4) Enter into a new lease agreement for any mineral right or riparian right on any real property located in Indiana. As added by P.L.131-2026, SEC.5.

Ind. Code § 32-22-3.5-7.5 Purchase of real property; exception

Sec. 7.5. An individual who has a valid, unexpired nonimmigrant visa may purchase real property located in Indiana if: (1) the individual's visa is valid for more than twelve (12) months after the acquisition of the real property; (2) the real property is zoned for single family residential use; (3) the real property is not more than one-half (1/2) acre; and (4) the individual has been determined not to be an agent of a foreign adversary. As added by P.L.131-2026, SEC.5.

Ind. Code § 32-22-3.5-8 Action; divestiture

Sec. 8. (a) This section applies to a prohibited person that owns an interest in real property located in Indiana on July 1, 2026. (b) A prohibited person that owns an interest in real property located in Indiana on July 1, 2026, shall not act as an agent of a foreign adversary. (c) The attorney general may bring an action under section 9 of this chapter to require divestiture of a prohibited person's real property interest only if the attorney general establishes, by clear and convincing evidence, that the prohibited person is acting as an agent of a foreign adversary. (d) If the attorney general makes a prima facie showing under subsection (c), the burden of proof shifts to the prohibited person to demonstrate, by a preponderance of the evidence, that the ownership or control of the real property does not present a risk of the prohibited person acting as an agent of a foreign adversary. (e) A court may not order divestiture under section 9 of this chapter unless the court enters written findings of fact and conclusions of law establishing that the attorney general has satisfied the burden required under subsection (c) and that divestiture is permitted under this section. As added by P.L.131-2026, SEC.5.

Ind. Code § 32-22-3.5-9 Investigation; receivership proceeding; immunity

Sec. 9. (a) Upon receipt of information that leads the attorney general to believe a prohibited person has violated section 7, 7.5, or 8 of this chapter, the attorney general shall investigate the alleged violation and may issue subpoenas requiring the: (1) appearance of witnesses; (2) production of relevant records; and (3) giving of relevant testimony. (b) The attorney general shall enforce a violation of section 7, 7.5, or 8 of this chapter by commencing a receivership proceeding under IC 32-30-5-1 and selling the real property or the interest in real property through the receivership. The following apply to a receivership proceeding under this section: (1) Proceeds of the sale shall be paid as follows: (A) To lienholders, in their order of priority, except for liens that under the terms of the sale are to remain on the property. (B) The costs of the receivership and sale, including reasonable attorney's fees and expert fees. (C) No proceeds shall be distributed from the receivership sale to the prohibited person. Any excess proceeds are forfeited and shall be transferred to the state general fund by the receiver. (2) If a receivership proceeding is initiated under this section, the prohibited person is personally liable for a civil penalty in the amount of ten percent (10%) of the market value of the real property, payable to the state general fund. (3) At the receivership sale, lienholders shall be able to have a credit bid in an amount that is not more than the amount owed to the lienholder on the date of the sale, as established in the court order for the sale of the property. (4) Upon commencement of an action under this section, the attorney general shall promptly file a notice of lis pendens with the clerk of court. Upon the entry of an order for the sale of the real property under this section, the attorney general shall promptly record a copy of the order in the office of the recorder of the county where the property is located. (c) The responsibility for determining whether an individual or other entity is subject to section 7, 7.5, or 8 of this chapter rests solely with the prohibited person and the attorney general and no other individual or entity. An individual or other entity who is not a prohibited person shall bear no civil or criminal liability for failing to determine or make inquiry of whether an individual or other entity is a prohibited person. (d) Except for an interest created after the effective date of the lis pendens notice filed under subsection (b)(4), divestiture of a prohibited person's title under this section shall not be a basis to void, invalidate, or otherwise extinguish any bona fide mortgage, lien, or other interest granted by, through, or under the prohibited person. An interest created after the effective date of the lis pendens notice filed under subsection (b)(4) is void upon entry of an order for the sale of the real property under this section. As added by P.L.131-2026, SEC.5.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/32Fetched: 10/17/2026