The bill lost support from two sides – those who believe a smoking ban constitutes government intrusion and those who want a more comprehensive law.
The Senate also passed an amendment raising the percentage of charter school teachers who must be licensed.
The bill allows people to carry a handgun without a license if they’re attending a firearms-related event.
On Wednesday, groups gathered to show support for the measures.
The state’s $28 billion budget has cleared its first hurdle.
The senate voted 40-10 to constitutionally ban same-sex marriage.
Republicans lowered a cap on the number of vouchers available to 7,500 in the first year and 15,000 in the second year.
Cicero Representative Eric Turner, the bill’s author, says the amendment would open a huge loophole.
A proposed constitutional amendment banning gay marriage and civil unions in Indiana passed a Senate committee Wednesday.
Indiana Superintendent of Public Instruction Tony Bennett testified on a number of ideas, including the new school funding formula.