Introduction:  Indiana’s rate of obese/overweight youth is the second highest in the nation, and Type II diabetes is increasingly common, especially in minority youth.  A “stroke belt” state, Indiana’s adult obesity rates exceeded national averages since 1990. Public health-education coalitions are supporting a legislative commission’s suggestions for State school nutrition and physical activity guidelines, and for restricting unhealthy foods sold in schools. Methods: Interview data from legislators, health & school officials, and other stakeholders were compared to similar efforts in other states. Results: Obstacles for state legislative policy on school-age obesity include:  pressure for Federal academic milestones under budget deficits; and traditional local autonomy versus “government influence” in areas of “personal choice” and free market negotiations between local schools and vendors. Introduced 2004 legislation allows vending sales but require healthier options (retaining schools’ discretionary income). The Education Department is required to develop nutrition policy guidelines, start monitoring student BMI trends, and promote 30 min/day activity for K-6 graders.  Food items sold must meet “healthy food” criteria, and be competitively priced. Conclusions: State policy makers acknowledge community influences on youth obesity, and that environmental cues prompt activity and eating choices, apart from familial behaviors.  Altering cues may reduce health disparities, and obesity’s state health costs, but political costs from irate stakeholders are more immediate, tangible consequences to legislators.  Indiana’s accepted/ rejected legislative strategies to reduce child obesity are discussed in the contexts of legislative efforts of other states, and earlier state anti-tobacco policies to reduce smoking cues in school environments.