SB 289 Indiana Senate · 2026 Regular Session

Public depositories.

Summary

Provides that if two or fewer financial institutions that have a branch or principal office in a county or in a county contiguous to the county that is located in Indiana are willing to accept public funds, the board of finance for the county may: (1) treat the financial institutions that are located within the county or a county contiguous to the county that is located in Indiana as if the financial institutions were not located within the county or a county contiguous to the county; and (2) designate certain financial institutions to receive public funds. Makes conforming changes.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 12, 2026 Last action Jan 22, 2026

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What changed between versions

Introduced Senate Bill (S) → Senate Bill (S) · 4 edits

MODERATE

This bill was amended to clarify how counties and political subdivisions can designate financial institutions for public funds when local banking options are limited. The changes specifically address situations where there are few willing banks, allowing boards of finance to treat out-of-county institutions as if they were local and designate them for public deposits. This provides flexibility for rural areas and smaller political subdivisions that may not have sufficient local banking options.

Scope change

The bill's scope was expanded to explicitly include counties contiguous to the subject county when determining available financial institutions, and clarified rules for political subdivisions that are not counties.

ELIGIBILITY

Changed the criteria for when boards of finance can designate out-of-county financial institutions, now explicitly including counties contiguous to the subject county in Indiana.

REQUIREMENT

Added specific provisions for political subdivisions that are not counties, clarifying how they should designate depositories when local banking options are limited.

Updated the language regarding when boards of finance can treat financial institutions as if they were not located within the county or contiguous county for deposit purposes.

TECHNICAL

Minor formatting and numbering adjustments throughout the document to reflect the amended version.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 22, 2026

Upper · Passed

Committee report: amend do pass, adopted

upper

2 primary · 1 co-sponsor