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Panel advances bill barring out-of-state choice-of-law clauses in school contracts, expands scouting access
Summary
Senate Bill 200 passed committee after sponsors said it protects school corporations (including charter schools) by ensuring contracts are governed by Indiana law and by invalidating certain indemnity clauses; it also expands authorized visits by certain civic organizations. Committee vote was 9-2.
Senate Bill 200, focused on school contracting and related provisions, advanced from committee after an amendment to explicitly include charter schools and wide-ranging testimony from education representatives.
Senator Rotz explained the bill aims to make clear that contracts entered into by school corporations should be governed by Indiana law and that indemnity clauses imposing open-ended obligations on schools are unenforceable. He described the bill as having three parts: a choice-of-law provision, an indemnity limitation, and a change to allow specified patriotic and civic organizations to visit schools twice a year instead of once.
Supporters representing school districts told the committee the language would prevent vendors from imposing out-of-state choice-of-law clauses and from demanding schools assume contractor liabilities. John Young, who represents multiple schools, said, "It sounds like the committee understands the goal of the bill, which is choice of law needs to be in Indiana." Charlie Hilton (Crossroads Scouting Council) and other stakeholders supported the scouting provision as a way to increase civic engagement in schools.
Several members cautioned about constitutional and interstate-commerce issues and asked for technical clarifications, particularly over whether a provision should render clauses "void" or "voidable" and how the language defines "choice of law." Senator Rotz agreed to work with colleagues on a follow-up amendment to clarify venue and enforceability language.
The committee advanced SB200 by a recorded vote of 9 to 2. Sponsors and supporters signaled willingness to refine statutory language before floor consideration.
