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Board approves MOU with Centerstone of Indiana after legal-review reminder about new state law
Summary
The board approved renewing an MOU with Centerstone of Indiana for the 2026-27 school year and received a staff warning that Indiana's Senate Bill 200 (effective July 1) prohibits public school corporations from agreeing to vendor indemnification clauses or selecting out-of-state law/venue in contracts.
The Nineveh-Hensley-Jackson United School Board approved a memorandum of understanding with Centerstone of Indiana to continue services into the 2026-27 school year and heard a legal reminder about compliance with a new state law.
Staff introduced the MOU and sought board approval to renew the same contract terms used the prior year. During discussion, staff/attorney (S3) advised the board that Senate Bill 200, effective July 1, changed public-policy constraints for Indiana school corporations: school districts may not agree to vendor indemnification clauses or to choice-of-law or venue provisions that specify law or courts outside Indiana. S3 urged the board to have all vendor contracts reviewed to remove unlawful indemnification and out-of-state venue clauses.
S3 summarized the problem plainly: "Indemnification means that I'm gonna cover your mistakes," and explained that agreeing to non-Indiana choice-of-law can forfeit statutory governmental immunities available under Indiana law. Board members acknowledged the explanation; the board then voted to approve the pending motion renewing the MOU with Centerstone.
The legal reminder means district staff will need to ensure the Centerstone agreement and other vendor contracts comply with SB200's requirements. The board did not record any amendment to the MOU on the meeting record; staff recommended contract reviews district-wide to remove impermissible indemnification or out-of-state venue language.
