Student bullying and abusive behavior. Revises the definition of "bullying". Requires each public school, including a charter school, to track, monitor, and analyze specified aspects of bullying, and provides that a parent of a student or a student, if the student is an emancipated minor, may submit a grievance to the school for a violation of this requirement. Requires each school corporation and charter school to: (1) document and track all acts of bullying and abusive behavior for analysis; (2) prepare and implement interventions to deter and prevent bullying; and (3) compile, prepare, and submit an annual report beginning July 1, 2026, to the department of education, the state board of education, and the legislative council summarizing the information collected. Requires the state board of education to review the report and provide recommendations to certain schools to reduce the frequency of acts of bullying or abusive behavior.

Testing of drinking water. Requires a local health department to provide a free water quality test kit, upon request and subject to certain limits, to an individual residing within the local health department's jurisdiction. Provides that the water quality test kits must have the capacity to detect arsenic, fluoride, lead, mercury, and nitrate.

Regional innovation development. Provides that a regional development authority (RDA) (rather than the Indiana economic development corporation) may designate territory within a county, city, or town as a regional innovation development and manufacturing district (district). Requires an RDA to enter into an agreement with the executive of a county, city, or town (or executives, if applicable) for any territory sought to be designated as a district. (Current law required agreements when the total costs and benefits of a district were expected to be an amount less than $2,000,000,000). Imposes an "annual state revenue transfer cap" on the sum of the net increment of the gross retail incremental amount and the state income tax incremental amount that is equal to 65 times the aggregate population of the territory within an RDA. Provides for review (in addition to budget committee review) by a regional strategic development commission or equivalent authority charged with strategic review under an RDA statute of proposals to designate territory as a district, including designations in which there is an existing allocation area. Lowers the threshold from an unobligated balance of $500,000,000 to $100,000,000 in the statewide district fund required for making transfers to the state general fund. Makes conforming changes.

Contracts with CSA and student training providers. Provides that individuals and entities that participate in designated and approved course sequences, career courses, apprenticeships, and programs of study leading to industry recognized credentials or work based learning courses (participating entities) may be awarded a contract for a public works project at any contractor tier. Prohibits a public agency from imposing certain contract conditions on participating entities.

Wake boarding and wake surfing. Specifies restrictions that apply to wake boarding or wake surfing on a public freshwater lake. Establishes a penalty. Specifies restrictions that apply to wake boarding or wake surfing on a small lake. Prohibits operation of a motorboat with: (1) an outboard motor; or (2) an outdrive unit; with a propeller that extends past the motorboat's transom, swim platform, boarding platform, swim step, or swim ladder for the purpose of wake surfing.

Sale of bureau of motor vehicles information. Prohibits the bureau of motor vehicles (BMV) from selling the personal information of an individual who: (1) is less than 21 years of age; (2) is 65 years of age or older; or (3) opts out of the sale of the individual's personal information. Prohibits a person to which the BMV provides such information from selling or disclosing the information (sales prohibition). Requires the BMV to provide an easily understandable and easily accessible means by which an individual may opt out of the sale of the individual's personal information. Permits the state board of finance, upon approval by the governor, to transfer funds to the BMV to offset a shortfall in funding for the BMV that occurs in a state fiscal year beginning before July 1, 2027, as a result of the sales prohibition.

Inspector general government efficiency report. Requires the inspector general to annually do the following: (1) Beginning in 2026, prepare a current list of all boards, committees, and commissions of the executive, including administrative branch (commissions), and send the list to the legislative council. (2) Beginning in 2027, conduct efficiency reviews of at least 25% of the active commissions and report the review results to the legislative council.

Property tax matters. Amends the property tax exemption for property used by a for-profit provider of early childhood education, including by requiring the provider to offer age appropriate curriculum and by excluding from the exemption tangible property that has been granted a homestead standard deduction. Provides a partial property tax exemption for an employer that provides child care on the employer's property for the employer's employees, and for the employees of another business if the employer and the other business enter into an agreement that outlines the terms under which the child care is to be provided. Specifies the conditions that must be met to obtain the partial property tax exemption. Requires the office of the secretary of family and social services, in consultation with the early learning advisory committee, to: (1) evaluate and make recommendations; and (2) submit a report; regarding child care. Amends the maximum levy growth quotient to base the six year average calculation on the yearly wage growth for state and local government employees in Indiana and the annual increase in the Consumer Price Index. Requires the true tax value of a privately owned wastewater facility to be determined by applying the income capitalization approach. Provides that, if the application of the income capitalization method for an assessment year results in a zero or negative assessment, the privately owned wastewater facility is exempt from property taxation for that assessment year. Requires assessing officials in an assessment of residential deed restricted property to only use or consider sales of other residential deed restricted property as a comparable sale property for purposes of a sales comparison analysis.

Adjusted gross income tax filing requirement. Provides that minimum wage income is exempt from the adjusted gross income tax. Defines "minimum wage income". Provides that an individual whose only source of income is minimum wage income is not required to file a state income tax return. Provides that an employer is not required to withhold taxes from minimum wage income paid to an employee.

Small modular nuclear reactor development costs. Amends as follows the Indiana Code section concerning certificates of public convenience and necessity (certificates) for small modular nuclear reactors: (1) Authorizes a public utility to petition the Indiana utility regulatory commission (IURC) for approval to incur, before obtaining a certificate, project development costs for the development of one or more small modular nuclear reactors. (2) Sets forth certain factors that the IURC must consider in reviewing a public utility's petition to incur project development costs. (3) Requires the IURC to issue a final order approving or denying the petition not later than 180 days after receiving the petition and the public utility's complete case in chief, subject to the IURC's right to extend the time for review if the public utility does not object to the extension. (4) Provides that if a public utility receives approval to incur project development costs, the public utility may petition the IURC at any time before or during the development and execution of a small modular nuclear reactor project for the approval of a rate schedule that periodically adjusts the public utility's rates and charges to provide for the timely recovery of project development costs. (5) Provides that after reviewing a public utility's proposed rate schedule, the IURC shall approve the recovery of project development costs by the public utility if the IURC finds that project development costs that have been or will be incurred are: (A) reasonable in amount; (B) necessary to support the construction, purchase, or lease of a small modular nuclear reactor; and (C) consistent with the commission's finding as to the best estimate of project development costs. (6) Provides that a public utility that is authorized to recover project development costs shall: (A) recover 80% of the approved project development costs under the approved rate schedule; and (B) defer the remaining 20% of approved project development costs for recovery as part of public utility's next general rate case before the IURC. (7) Provides that the recovery of a public utility's project development costs through an approved periodic rate adjustment mechanism must occur over a period that is equal to: (A) the period over which the approved project development costs are incurred; or (B) three years; whichever is less. (8) Provides that project development costs that: (A) are incurred by a public utility; and (B) exceed the best estimate of project development costs included in the IURC's order authorizing the public utility to incur project development costs; may not be included in the public utility's rates and charges unless found by the IURC to be reasonable, necessary, and prudent in supporting the construction, purchase, or lease of the small modular nuclear reactor for which they were incurred. (9) Provides that: (A) project development costs incurred for a project that is canceled or not completed may be recovered by the public utility if found by the IURC to be reasonable, necessary, and prudently incurred; but (B) such costs shall be recovered without a return unless the IURC makes certain additional findings. (10) Provides that if a public utility does not seek: (A) approval of; or (B) cost recovery for; project development costs under the bill's provisions, the IURC may approve the deferral and amortization of project development costs in accordance with the statutory procedures set forth for construction costs.

Medicaid matters. Requires the office of the secretary of family and social services (office) to report specified Medicaid data to the Medicaid oversight committee. Requires the office to receive and review data from specified federal and state agencies concerning Medicaid recipients to determine whether circumstances have changed that affect Medicaid eligibility for recipients. Prohibits the office from accepting self-attestations of certain information in the administration of the Medicaid program. Requires the office to apply for a Medicaid state plan amendment to remove references to coverage under the Medicaid plan of a certain population. Requires the office to establish: (1) performance standards for hospitals that make presumptive eligibility determinations and sets out action for when hospitals do not comply with the standards; and (2) an appeals procedure for hospitals that dispute the violation determination. Modifies eligibility categories and requirements for the healthy Indiana plan (plan). Specifies limitations for enrollment in the plan.

Short term rental properties. Requires a unit to amend its zoning ordinance to specify the use, development standards, and findings of fact required to approve, deny, or make a recommendation on a special exception, special use, contingent use, conditional use, or use variance from the zoning ordinance with regard to a short term rental property. Provides that a property rented once during each of two consecutive years becomes ineligible for the standard homestead deduction.

Construction of data center by foreign adversary. Provides that after June 30, 2025, a foreign company may not construct or cause to be constructed a data center in Indiana unless the Indiana utility regulatory commission and the Indiana economic development corporation conduct a joint study of the anticipated electricity use of the prospective data center and certify to the governor and the general assembly that the electricity estimated to be used by the data center will be self-generated and will not affect the load supply of the regional transmission organizations whose service territory includes Indiana.

Public defender participation in PARF. Adds a person who serves in one of the following positions on or after January 1, 2016, to the prosecuting attorneys retirement fund (PARF): (1) The state public defender or chief deputy state public defender employed by the state public defender. (2) The executive director of the public defender council of Indiana or the second highest paid staff person or a full-time staff attorney employed by the public defender council of Indiana. (3) The highest paid or the second highest paid staff person employed by the Indiana commission on court appointed attorneys. (4) A chief public defender or chief deputy public defender. Allows staff attorneys of the prosecuting attorneys council of Indiana employed on or after January 1, 2012, to participate in PARF. Changes the name of the prosecuting attorneys retirement fund to the prosecuting attorneys and public defenders retirement fund. Provides that after a participant has contributed to PARF for 22 years, the state or county shall pay the contributions to the fund for the participant. Provides that the computation of benefits is based in part on the highest salary that was paid to the participant before separation from service. Provides that 1% shall be added to the percentage used to calculate benefits for each year of service after 22 years. Provides that a reduced annual retirement benefit equals the benefit that would be payable if the participant were 65 years of age reduced by 0.10% for each month before the participant's sixty-fifth birthday. Provides for a cost of living adjustment for participants of PARF based on increases to judge salaries. Allows a participant to receive service credit in PARF for more than one year and less than 10 years of service received by the participant in the public employees' retirement fund under certain conditions. Provides for the calculation of an offset of PARF benefits payable to a participant from a participant's public employees' retirement fund benefits based on the concurrent service and wages the participant earned in both the public employees' retirement fund and PARF. Makes corresponding changes.

Settlements under the tort claims act. Requires a court to specify how much of a settlement must be allocated against the tort claim act liability cap when: (1) the cap applies to two or more defendants; (2) one, but not all, of the defendants settle the case; and (3) the defendants have not agreed on the allocation of the claim.