Void and unenforceable terms in vendor contracts

Sec. 4.1. (a) This section applies to a vendor contract entered into, amended, or renewed after June 30, 2026.

(b) As used in this section, "automatic renewal provision" means a provision in a vendor contract that provides for the automatic renewal of the contract unless the governing body of a school corporation or the equivalent authority for a charter school gives notice to the vendor that the school corporation or charter school intends to terminate the vendor contract at the end of the contract term.

(c) As used in this section, "choice of law provision" means a term within a vendor contract that subjects the vendor contract to the laws of a state other than Indiana.

(d) As used in this section, "indemnity provision" means a provision, a clause, a covenant, or an agreement that:

(1) is contained in, collateral to, or affecting a vendor contract; and

(2) purports to indemnify, defend, or hold harmless, or has the effect of indemnifying, defending, or holding harmless, a vendor against liability for loss or damage resulting from:

(A) negligence;

(B) intentional acts; or

(C) omissions;

of the vendor or an agent, employee, servant, or independent contractor that is directly responsible to the vendor.

(e) As used in this section, "vendor contract" means a contract between a governing body of a school corporation or the equivalent authority for a charter school and a vendor in which the vendor promises to provide goods or services.

(f) Notwithstanding any other law, an indemnity provision in a vendor contract under this section is:

(1) against public policy; and

(2) void and unenforceable.

(g) Notwithstanding any other law, a choice of law provision in a vendor contract under this section is:

(1) against public policy; and

(2) void and unenforceable.

A vendor contract is only subject to the laws of the state of Indiana.

(h) Notwithstanding any other law, an automatic renewal provision in a vendor contract under this section is:

(1) against public policy; and

(2) void and unenforceable.

As added by P.L.149-2026, SEC.1.