There is indeed a state of distillation requirement and it is not being enforced. I wrote about the issue a few months back, linked below. I had thought Templeton used to say "produced in Indiana" on the label, but I could be wrong.
I missed that post, thanks for the link. As to whether TR ever listed Indiana on the label, it doesn't appear so from the COLAs that are available. I've only just recently seen a bottle in the wild, as I said.
I guess "give 'em the bird" isn't just a marketing slogan, it's a brand management strategy, too.