The lawsuit, which was filed in the Marion County Environmental Court, seeks to allow the city to continue construction on the Kokomo Municipal Stadium.
SB 100 gives the Indiana Department of Homeland Security the ability to issue a cease-and-desist order in certain circumstances.
Kokomo has received approval from the DNR on a flood mitigation plan, even as it seeks to resolve a dispute with FEMA regarding similar issues.
If it passes, the proposal would authorize the Indiana Department of Homeland Security to issue a cease-and-desist order to stop work on the project.
FEMA officials say the construction is a violation of a federal hazard mitigation grant the city accepted.
The move will enable the company to expand production of its eight-speed transmission vehicles.
Mayor Goodnight explains why the city's curbside recycling roll-out is delayed and his reaction to Bloomington Mayor Mark Kruzan not to run for mayor next year.
Kokomo has largely recovered one year after a tornado swept through the city, but some people are still rebuilding.
Two tornadoes damaged parts of the Kokomo area last year. A series of tornadoes devastated parts of the state.
The new 73,000-foot facility includes a new aquatic center, a teen center and community gathering spaces, among other amenities.