1/26 Hendricks County Chambers Weekly Statehouse Update

Another busy week for Chamber-related issues before the Indiana General Assembly! Let’s dig right in …

Workforce

Last week, we told you about the House Republican priority bill the House Education Committee heard HB 1001 which is this year’s omnibus workforce bill and a trailer bill to HEA 1002 from last year. This legislation seeks to “reinvent high school” and allows students access to state funding for Career Scholarship Accounts (CSAs) for workforce training in high school (up to $5000 per student for job training). The bill was recommitted last week to House Ways and Means but there were still concerns by House Democrats that the bill was creating unnecessary competition between grant dollars for students wishing to use the funds for post-secondary attainment vs. workforce training. Despite this, the bill passed the full House 80-17 and heads to the Senate for further consideration.

Another workforce bill HB 1165 passed out of the House Government and Regulatory Reform committee this week. Legislation by Rep. Jake Teshka (R-South Bend) the bill creates a regulatory sandbox and a Right to Start program and seeks to assist new businesses grow and succeed in Indiana. Specifically, the bill requires the state to encourage 5% of the total number of state contracts to be awarded to Indiana-based businesses that have been in operation for fewer than five years. It also requires the state to encourage 5% of workforce development funding, including funding allocated by workforce development boards across Indiana, to be used to support organizations or programs for individuals starting new businesses in Indiana And by July 1, 2025, the bill requires the Secretary of State to eliminate the fees for filing the articles of incorporation of a domestic business corporation. Last week the bill was held but it moved out of committee 10-3 and recommitted to House Ways and Means. The bill has not yet been scheduled for its second committee, and it must be heard no later than Tuesday or it would be considered dead for the session.

Childcare

Meanwhile, many childcare bills are on the move in the first half of session. The Senate Health Committee debated SB 2 - the Senate Republican priority bill dealing with childcare and passed it unanimously to be recommitted to Senate Appropriations Committee. As a reminder, this legislation specifically addresses regulations that are hindering accessibility of childcare. Provisions in the bill comes from recommendations from last year’s interim study committee of the Public Health Committee, establishing pilot “micro-facilities” and lowering the minimum age of childcare workers. It also seeks to allow childcare workers access to childcare credits for their own children (a significant perk to employment). The bill was heard in Senate Appropriations this week with limited testimony and passed out unanimously. The bill will be eligible by the full House next week.

Other childcare-related bills are moving - HB 1102 was heard in House Family, Children, and Human Affairs Committee and the introduced bill allowed providers to operate class 1 childcare homes with or without a license with corresponding regulatory oversight - a significant concern for many advocates. Fortunately, the bill was significantly amended in committee that would remove this problematic language and replace it with more modest licensing changes and some limitations on the ability of local governments to use zoning ordinances to prohibit the operation of home-based childcare. The bill was held for a week but passed out of House Family, Children and Human Affairs by a vote of 8-4 and now heads to the full House for further amendments and a final vote. Advocates are much more comfortable with the language of the bill now but we will keep our eyes open for further developments.

Meanwhile, SB 153 a childcare bill authored by Sen. Linda Rogers is also moving. This bill has some provisions also in SB 2 and also extends limited eligibility for On My Way Pre-K to the children of those receiving disability benefits from the Veterans Affairs Administration. This bill passed out of Senate Family and Children Committee unanimously and was recommitted to Senate Appropriations where it is awaiting a second hearing. I would anticipate that many of these Senate-led childcare bills will merge into a single bill (likely SB 2) before the end of session.

And finally, SB 147 was heard on Tuesday in Senate Tax and Fiscal Committee. Another bill authored by Sen. Rogers, this legislation deals with property tax deductions for businesses that have on-site childcare for employees. A number of chambers testified in support of this legislation and the bill will be heard for a second time in committee this upcoming week. I would anticipate that many of these childcare-related bills will be merged into one comprehensive omnibus bill in the coming weeks.

Here is the live link to your bill track for 2023.