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4/12 Hendricks County Chambers Weekly Statehouse Update

  • General Statehouse Update
  • Hendricks County Chambers Update
  • Action Items
  • Important Dates
  • Closing

General Statehouse Update

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Session Snapshot: Crunch Time at the Statehouse

This week, the Indiana General Assembly kicked into high gear as bills raced to meet key deadlines and lawmakers began positioning their final priorities for end-of-session negotiations. The tone has shifted from deliberation to determination, with committee rooms packed, floor debates heating up, and more than a few bleary-eyed lobbyists subsisting on lukewarm coffee and hope.

A major highlight this week was the House passage of SB 1, the cornerstone property tax reform bill and a top priority for legislative Republicans and Governor Braun. Following weeks of speculation, hours of testimony, and dozens of behind-the-scenes edits, the bill emerged with a full package of local government finance changes, property tax credits, and tighter debt controls. At the eleventh hour before final passage in the House, Governor Braun tweeted his support and urged the House to vote for the bill, and the Senate to concur. The House did pass the bill along party lines, and a concurrence motion has been filed in the Senate — setting up a final showdown early next week.

Over in the healthcare arena, the Senate Appropriations Committee finally acted on two of the most-watched bills of the session: HB 1003 and HB 1004. Both were heavily amended, with the 340B provision and the Secretary of Health proposal stripped from HB 1003, and price cap provisions for hospitals in HB 1004 still facing scrutiny. Meanwhile, SB 480 (Prior Authorization) and SB 140 (Pharmacy Benefit Managers) were amended and moved out of House Insurance Committee, signaling that some progress is being made on Governor Braun’s broader healthcare cost agenda—even if the path forward is still crowded with competing interests.

On the education and workforce side, SB 463, the childcare reform bill, crossed a major hurdle this week with a unanimous final vote in the House (94-0). The bill, which expands flexibility for providers and strengthens advisory representation, is now just one Senate concurrence vote away from the Governor’s desk. Likewise, efforts to boost Indiana’s defense tech sector through SB 465 advanced, with additional support for certified tech parks (and a Level 3 designation for WestGate) headed toward final passage.

 

Budget Update: Senate Version Released

In a significant development, the Senate Appropriations Committee unveiled and passed its version of the biennial budget (HB 1001) this week. The Senate's $46.8 billion proposal emphasizes fiscal conservatism, setting aside over $3 billion in reserves. Key highlights include:

  • Education Funding: A modest 2% annual increase for K-12 education, diverging from the House's more aggressive funding approach. Notably, the Senate version omits the House's proposed expansion of universal school vouchers, maintaining current eligibility criteria.
  • Healthcare: Full funding for Medicaid, aligning with the House's commitment to supporting vulnerable populations.
  • Public Health: Allocation of $100 million annually for local public health initiatives, with eligibility limited to legal residents, a point of contention among some lawmakers.
  • Virtual Schools: A proposed reduction in funding for virtual schools from 85% to 70% of the per-student allocation, citing concerns over accountability and ongoing investigations into virtual school operations.

The Senate budget now moves to the floor for further debate, setting the stage for negotiations with the House to reconcile differences before the session's end.

 

What’s Next: Deadlines, Drama, and the Start of Conference Season

Next week marks the end of regular floor action for the 2025 session:

  • Monday, April 14 is the Second Reading deadline, when bills can be amended by the full House or Senate.
  • Tuesday, April 15 is the Third Reading deadline, when bills must receive a final vote in the second chamber.

Think of Second Reading as the last chance for legislators to leave their mark with amendments—often used to sneak in last-minute fixes or revive previously discarded ideas. Third Reading is do-or-die: a bill either passes and lives on or fails and heads to the legislative graveyard (where it may be mourned, but likely not resurrected until next year).

After that, we enter the final stretch: conference committees.

If the second chamber changes a bill in a way the original author does not like, the author can "dissent," sending the bill to a conference committee—a special group of four lawmakers (two from each chamber, one from each party) who meet to negotiate a final version. These meetings can be fast and focused or long and theatrical (sometimes both), but they are where some of the most consequential—and surprising—deals get cut.

With just two weeks left in session, everything is on the table. Budget talks will intensify, major bills will jockey for final votes, and conference committee rooms will be buzzing with negotiations, posturing, and the occasional hallway deal. In other words: buckle up.

Your Torchbearer Public Affairs team will be in the trenches every step of the way—caffeinated, committed, and keeping score until sine die.

Hendricks County Chambers Update

The light at the end of the tunnel is near, and we are down to two weeks(ish) left of the 2025 legislative session. Bills are going to move at a lightning pace, and conference committees are set to start next week. Please read on below for priorities of importance to you and your organization. Of course, please reach out with any questions or concerns.

 

Bill Updates:

Bills Awaiting a Concurrence or Dissent

Bills headed to Conference Committee

Bills headed to the Governor

  • SB 431 (Construction of Data Centers by Foreign Adversary)

Bills Signed by the Governor

  • SB 178 (Natural Gas and Propane as a Clean Energy Resources)

 

State Budget

HB 1001 - The Senate budget amendment to HB1001 was released to the Appropriations Committee on Thursday, April 10th. The amendment was voted out of committee and passed to the Senate floor for further review by the Senate.

The budget amendment is still just a placeholder of the Senate Chamber’s priorities until the revenue forecast is announced on April 16th. At that time we will see a conference committee amendment that reflects the information they find out in the revenue forecast.

The Senate budget amendment aligns very closely with the House budget amendment in most areas. However, some changes in Education funding are as follows:

  • Removes Universal Voucher Language from the House-passed budget
  • Removes the additional funding that the House provided for Education Scholarship Accounts and Career Scholarship Accounts, and moved these from the purview of the Treasurer’s office to the IDOE
  • Lowered the funding of virtual students to 70% - (House moved funding from 85% to 100% of in-person students)
  • The Senate kept curriculum costs in the foundation
  • The Senate kept a 2% baseline increase in foundation funding for now (more details coming after the revenue forecast)
  • Increased school safety grants by $2.5M
  • Maintained CTE grants at the same level they are currently
  • Funds the IDOE’s request to incentivize the new diploma seals
  • Increases Special Education funding by 5%
  • Increases Non-English Learners $9M over the biennium
  • The Senate foundation funding per ADM is as follows:
    • FY2025 $8347
    • FY2026 $8669
    • FY2027 $8827

Most of the dollars that have been absorbed in this $46.8B budget have to do with fully funding Medicaid and the Department of Child Services (DCS), as well as the needed increases for the Department of Corrections (DOC).

  • The cost of fully funding Medicaid forecast is a $2.1B increase over the biennial
  • The Senate version of the budget allows for $3B in state reserves in year one and year two of the budget

Some additional budget line items to mention include:

  • No cigarette tax in the budget (but all eyes are on this after the revenue forecast)
  • Direct flights - $5M per year
  • High-Value Workforce Ready Bearing Grant - $6M+ per year
  • Mental Health Funding - $100M/year for community mental health centers
  • Public Health Funding - $100M/year
  • Childcare - $155M in childcare development fund (CCDF) hold harmless; $40M per year for CCDF; $27M per year for On My Way PreK, lowers income eligibility for OMWPK back to 127% of FPL
  • The Senate budget also retains a Braun-proposed workforce tax credit that would incentivize Indiana employers to pay for additional staff training that leads to increased wages. Under the credit, a business could claim a $5,000 credit per employee and up to $50,000 total for a maximum of 10 employees.
  • The budget allots $1.75 million each year to the soon-to-be-created Office of Entrepreneurship and Innovation.

 

Property Tax Relief

SB 1 - Property Tax Relief and Reform

After weeks of committee hearings, amendments, and negotiations, SB 1 has emerged as a wide-ranging property tax and local finance reform package—now reflecting Governor Mike Braun’s and House Republicans’ vision for long-term tax relief and local government accountability. The legislation cleared the House this week on a 65–29 vote following a key second reading amendment and now returns to the Senate for concurrence.

The bill aims to ease the burden on homeowners while reshaping Indiana’s broader tax landscape. Central to the measure is a shift from deductions to credits, most notably the introduction of a new supplemental homestead credit, which will phase in as the standard homestead deduction is phased out. SB 1 also provides enhanced support for seniors through an expanded Age 65 and Over circuit breaker and establishes a new credit for properties impacted by the 2% tax cap, set to begin in 2031.

In a move to curb local government spending, the bill imposes new restrictions on levy growth. While assessed value may continue to rise, local governments must now hold public hearings and adopt ordinances to raise property tax levies. Additionally, the bill caps levy growth at 4% in 2026 and eliminates many excess levy appeals, with exceptions for specific events like disasters or annexations.

The legislation also makes significant changes to business personal property (BPP) taxes, raising the exemption threshold and eliminating the 30% depreciation floor for new equipment unless it’s in a TIF district. These changes are expected to modernize Indiana’s tax environment and promote business investment.

Perhaps the most far-reaching component is the full overhaul of Indiana’s Local Income Tax (LIT) system. The existing LIT framework will be phased out by 2027, with a new structure taking effect in 2028 that increases county-level rate capacity and allows municipalities to impose their own local income taxes—up to 1.2%. The bill also introduces a new holding account for better fund tracking and eliminates outdated local income tax councils.

Charter schools also see a major shift: Starting in 2028, traditional public schools that pass new operating referenda must share those revenues with eligible charter schools. This includes the school operations fund. The bill also sets closure standards for charters and dissolves the Union School Corporation.

To improve taxpayer transparency and fairness, SB 1 requires that all property tax referendums appear only on general election ballots with clear, standardized language showing the estimated impact on the average homeowner. A two-year waiting period between referenda for controlled projects is also imposed.

Other notable provisions include:

  • A new property tax deferral program for homeowners (up to $10,000),
  • Caps on fire protection territories and conservancy district rates,
  • A ban on new NICTD bonds tied to rail service funds after May 9, 2025,
  • And the creation of a statewide transparency portal through DLGF, allowing Hoosiers to review and compare property tax bills and leave public comments.

The House’s version of SB 1 incorporates several ideas from previous proposals like HB 1402 and SB 518 and earned a public endorsement from Governor Braun earlier this week. The bill now awaits final action in the Senate, which will determine whether to concur or further amend the legislation.

Explore these articles for a deeper dive:

 

Childcare

SB 463 - SB 463 aims to improve childcare quality and accessibility across Indiana by updating provider standards, supporting the development of microcenter pilot programs, and expanding the Early Learning Advisory Committee. The bill includes flexibility for staffing ratios and space requirements and encourages innovation to meet local childcare needs, particularly in underserved areas.

  • Throughout the legislative process, the bill was amended to expand representation on the advisory committee, reintroduce and later remove the Local Child Care Assistance Program due to fiscal concerns, and provide grace periods and flexibility for student workers and nontraditional childcare spaces. The bill also sparked discussion around staffing ratios, with supporters arguing Indiana’s current rules are overly restrictive and providers indicating they will maintain lower ratios regardless of state changes.
  • On second reading in the House, Amendment #6, Rep. Lori Goss-Reaves (R-Marion) prevailed, making final technical adjustments to ensure alignment with federal language and clarify existing childcare rules. This included refining terminology, correcting cross-references, and adjusting effective dates for certain provisions to ensure smooth implementation.
  • The bill passed the House unanimously (94-0) and now heads back to the Senate, where a motion to concur has been filed. A final Senate vote is expected before the bill is sent to the Governor’s desk.

HB 1253 - This bill originally included language to allow multi-site licensure for childcare centers and passed the House unanimously (91–0). In the Senate Appropriations Committee, Amendment #2 removed that language, with concerns about maintaining accountability at individual sites. Rep. Heine and FSSA argued the original proposal would still allow site-level oversight while reducing administrative delays.

  • The committee adopted the amendment by consent and passed the bill (11–0). However, similar language was reintroduced on second reading by Sen. Liz Brown and adopted by voice vote.
  • The bill passed in the Senate with a vote of 48-1 and now heads back to the House for concurrence or dissent.

 

Road Funding

HB 1461 - This year’s road funding bill was considered in Senate Appropriations on Thursday where a significant amendment was added. We are hearing there will be several amendments offered to HB1461 on the floor of the Senate on second reading next week. Most of those amendments will be around registration fees, township reserves, and tolling. The changes in the amendment include:

  • Changes the Short Line Rail tax credits from $5000 to $3500.
  • Adds a sunset date to the Railroad Tax Credits to 2027
  • Increases EV registration to $340
  • Increases hybrid registration to $150
  • Changes the wheel tax back to the original bill and stacks the wheel taxes
  • Adds a provision that if the administration enacts tolling anywhere in the state they have to report that to the state budget committee
  • Low water crossings on roads can now be ‘fixed’ with dollars from the road funding dollars
  • Eliminates all GEO bonds - meaning one cannot use property tax dollars to fund road projects anymore
  • Makes changes to how townships can use some of their reserves/CIP funds
  • The bill passed out of committee 9-4 and heads to the full Senate for consideration.

 

Housing and Building Matters

HB 1005 - This bill is authored by Rep. Doug Miller and was heard for a second time in the Senate Local Government Committee. This bill is a continuation of housing-focused legislation from 2023. It includes two major components: enhancements to the Residential Housing Infrastructure Assistance Program, and a new option for private plan review and inspection for Class 2 structures, which include single-family homes, duplexes, and townhomes.

  • The residential infrastructure fund, originally passed as part of the 2023 version of HB 1005, provides state-supported loans to local governments for housing-related infrastructure. So far, it has helped fund or support thousands of new housing units. The 2025 bill gives priority to communities that adopt zoning or regulatory reforms to encourage denser housing, aligning with federal YIMBY (Yes In My Backyard) policy models. While praised for its success, several lawmakers and stakeholders raised concerns about the lack of specific affordability requirements in the program.
  • A key new provision in the bill allows developers to use certified third-party inspectors for plan reviews and inspections, with a required turnaround of 10 days. Rep. Miller emphasized this would ease burdens on understaffed local building departments and speed up the construction process without sacrificing code compliance. The bill preserves local control, requiring builders to still file applications with the local jurisdiction, but gives them the option to use a private provider if timelines aren’t met.
  • Senator Linda Rogers, the bill’s sponsor, offered amendment #5 and said that this addressed the concerns of AIM, the City of Indianapolis, and other stakeholders. This amendment beefs up the priority ranking system to include all options from the YIMBY federal act. It also changes permit dates from July 1, 2025 to January 1, 2026. The amendment was taken by consent.
  • The bill passed 9-1, with Senator Taylor (D-Indianapolis) saying that he felt the bill did not go far enough to address affordable housing and would seek a 2nd reading amendment on this issue.
  • The bill passed the Senate with a 45-5 vote and now returns to the House, where Rep. Miller will decide whether to concur or dissent on the Senate's amendments.

 

State Fiscal Oversight Enhancements

SB 5 - Senate Bill 5, a Senate Republican priority focused on state fiscal oversight and contracting, has moved through significant legislative revisions in the House. The bill aims to increase transparency and accountability for state agency contracts, including the use of AI in budgeting, reporting requirements for federal fund applications, restrictions on nonpublic contracting, and expanded use of the state’s transparency portal.

  • In the House Ways and Means Committee, the bill underwent a major rewrite. Educational institutions and most non-state entities were removed from the bill’s provisions, narrowing its scope strictly to executive branch state agencies. INDOT was also exempted from the reporting requirements. Language mandating contractor accountability was removed, while new provisions preserved the use of AI in budgeting and required state agencies to submit quarterly contract and employment vacancy reports to the Budget Committee. Language related to request-for-qualification (RFQ) processes and several chapters regulating contractor disqualification and review of amendments were pared back or removed. However, new definitions and contract review procedures—particularly those related to federal fund matches and unused contract appropriations—were retained.
  • Two additional amendments were adopted on the House floor. The first clarified the definition of "state agency," and the second ensured that attorney-client privilege would be preserved in agency reports required under the bill. A final floor vote passed the bill 92-1.
  • The bill has now returned to the Senate, where author Sen. Scott Baldwin unexpectedly filed a dissent on the House amendments. The reason for the dissent remains unclear, which means SB 5 is now headed to a conference committee where House and Senate members will attempt to reconcile the differences between the chambers’ versions.

 

Economic Development

SB 516 - A bill authored by Sen. Buchanan seeks to enhance Indiana’s economic development by promoting entrepreneurship and increasing transparency. It establishes a new Office of Entrepreneurship and Innovation within the Indiana Economic Development Corporation (IEDC) to support small businesses and startups. The office will centralize resources and guidance for entrepreneurs statewide. The bill was heard in House Ways and Means for consideration.

  • The bill also adds transparency measures for IEDC land purchases over 100 acres, requiring notification to local officials and additional reporting for Innovation Development Districts. It formally establishes the IEDC President role in statute, though it involves no new funding.
  • Several amendments were adopted by consent:
    • Amendment #10: Requires written reports to county commissioners and mayors, and transfers tech park oversight to the new office.
    • Amendment #8: Requires IEDC to share the same notes with the State Budget Committee that are given to locals.
    • Amendment #12: Mandates equal information access for all members of the State Budget Committee.
  • The bill passed the committee unanimously (23–0) and passed the House 87-4.
  • A motion to concur was filed in the Senate this week and we are awaiting a concurrence vote.

 

Student Eligibility in Interscholastic Sports

HB 1041 - This bill regulates college sports participation based on sex assigned at birth, requiring teams at state schools to be designated male, female, or coed. It bars individuals assigned male at birth from joining female teams and requires out-of-state schools to notify Indiana institutions if transgender women are on their teams. It also mandates grievance procedures for violations.

  • Democrats offered multiple amendments in committee and on the Senate floor to allow transgender athletes to participate, but none were adopted. The bill passed out of committee 9-4 along party lines, and after additional failed amendments from the minority party on the floor, it was approved on final passage by a 42-6 vote. With no changes made, the bill is now collecting signatures en route to the Governor’s desk.

 

Various Tax Matters

SB 453 - The bill was heard last week in the House Ways and Means Committee, where three tobacco-related changes were adopted by consent. These included setting the tax rate on heated tobacco products at 50% of the cigarette tax if that rate changes, removing language that would have taxed heated tobacco differently or excluded certain devices from the definition of vapor products, and requiring health risk warnings in heated tobacco advertising.

  • The amended bill passed committee unanimously, 23-0, and passed off the House floor 93-1. It now heads back to its Senate author for consideration of the House amendments.
  • The author has filed a dissent motion, and we will be looking for a conference committee.

 

Unlawful Discrimination

SB 289 - SB 289, this year’s DEI bill, has been narrowed in scope as it moved through the House, now focusing on prohibiting discriminatory actions rather than banning DEI language outright. It applies only to public K-12, higher education, and licensing—not private businesses or privately funded programs. Amendment #11, adopted in committee, clarified training restrictions and softened some provisions, but the bill still imposes steep financial penalties on institutions in violation. House sponsor Rep. Chris Jeter emphasized the goal is to promote equal treatment without eliminating educational discussions around discrimination.

  • During floor debate, Rep. Earl Harris Jr. (D-East Chicago) successfully added an amendment—taken by consent—that broadens the eligibility for the Next Generation Hoosier Minority Educators Scholarship. It eliminates the minority requirement and targets students from underserved counties like Marion, Lake, and Allen, aiming to address teacher shortages in urban, high-need schools.
  • The bill now awaits a final House vote before returning to the Senate.
  • You can find additional details in the following news articles:

 

Here is a link to your live bill tracker.

Action Items

  • Please review your bill track list and let us know if there are any bills you would like us to engage more on in the second half.

Important Dates:

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Monday, April 14th - House and Senate Second Reading Deadline

Tuesday, April 15th - House and Senate Third Reading Deadline

April 16th - April 24th - Conference Committees

Thursday, April 24th - Anticipated Sine Die

Tuesday, April 29th - Sine Die