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2/21 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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Mid-Session Report

The Legislature is officially at its halfway point. The Statehouse halls will be much quieter for the next week as legislators head home and hardworking legislative staff (and lobbyists!) take a breather. Many of the session’s predominant and priority issues remain yet unsolved. And while the legislative process is a methodic and deliberate one, the uncertainty drives the anxiety that comes with a pending business decision that could make or break you - which is why your team at Torchbearer Public Affairs is here to help.

Bills that failed to pass out of their originating chamber (i.e. House bills out of the House and Senate bills out of the Senate) are now considered “dead.” After the first round of legislative deadlines, here are the stats:

  • Number of bills introduced in the House: 708
  • Number of bills that passed the House: 179 (25% passed)
  • Number of bills that died in the House: 529 (75% died)
  • Number of bills introduced in the Senate: 521
  • Number of bills that passed the Senate: 156 (30% passed)
  • Number of bills that died in the Senate: 365 (70% died)

Note: these numbers do not account for resolutions.

 

What’s dead?

Some contentious items died (for now). After Speaker Todd Huston stated that he was fine with Indiana election policies as they stand, a number of controversial election bills quietly died this week. Bills seeking to halve the amount of time that Hoosiers may early vote and bring closed primaries to Indiana both died during the last days of the first half. The closed primary bills were filed after a number of Hoosiers changed their previous partisan leanings during the spring primary in order to cast votes in the six-way Republican gubernatorial primary. While a bill seeking to bring an end to nonpartisan school board races died in the House, a less robust Senate version narrowly passed 26-20 earlier in the week.

Local control continues to dominate the conversation at the Statehouse, with municipal officials flexing on property tax, siting policy for energy projects, funding for roads, and other local revenue issues. Growing contention with siting legislation that did not get a vote in committee continued to cause collateral damage with other bills, possibly including Rep. Ed Soliday’s (R-Valparaiso) HB 1579, a follow up to 2022 legislation dealing with Carbon Capture Storage and Sequestration. The chairman’s bill died without being called for vote on the House floor this week and the Senate’s version (which narrowly passed 28-21 earlier this session) will face further scrutiny in the House.

Speaking of local control – the House bill criminalizing homelessness and preventing “camping” on municipally owned land will not advance after it failed to be called down for a vote on Thursday, the last day for bills to pass out of their original chamber. HB 1662 earned the ire of a number of entities, with a well attended hearing in the Statehouse’s smallest committee room. While the bill passed committee on a party line vote, it received a significant amount of concern from the public, and the bill was ultimately shelved. Only time will tell whether it will remain dead until the gavel falls on Indiana’s 2025 Legislative Session.

There are always a few surprises on deadline days but one of them truly surprised folks in the hallways – SB 317, a bill that provides basic consumer protections in relation to medical debt, suddenly died on the Senate Floor after receiving a unanimous vote in the Senate Health and Provider Services Committee just last week. Perhaps SB 317 was also collateral damage due to an unrelated bill? We may never know.

 

What’s still alive?

Property tax reform continues to suck all the oxygen out of the room at the Statehouse despite a wealth of pushback on all sides of the issue, with local school officials, local fiscal leaders, and even emergency services leaders calling for reined in fiscal impacts back home. With SB 1 standing to impact cities like Indianapolis to the tune of $130 million, conversations will continue, with the bill now handed over to Ways and Means Chairman Rep. Jeff Thompson (R-Lizton) for further action in the House. After issuing tepid support of the bill as it passed committee,

Governor Braun shifted his views, even threatening a veto, which is pretty much ineffectual given a healthy supermajority in both chambers.

SB 2, the much discussed healthcare and Medicaid reform bill passed the Senate earlier this week. While the author of the bill, Sen. Ryan Mishler (R-Bremen), says his goal is to “right size” Medicaid, many conversations continue to indicate the intersection of healthcare, work requirements, and the growing uncertainty about the leveraging of federal funding spells disaster for Hoosiers. With more revenue updates still to come in the next months, this conversation will continue to evolve.

 

Weighty topics remain…unsettled.

Unsettled? Yes, but that’s not a bad thing. It is not abnormal for complex issues to be up for discussion and change well into the final moments of the legislative session. The budget will no doubt be one of them. HB 1001 passed out of House Ways and Means Committee on partisan with two amendments (Amendment #11 and Amendment #12) first thing Monday morning. The bill was then amended on the floor (Amendment #19) on Wednesday and passed the House 66-28 on partisan lines the next day after an extended debate much in part due to continuing drama over school funding. The bill will now restart the process in the Senate, with fiscal leader Sen. Ryan Mishler (R-Bremen), Chairman of the Senate Appropriations Committee in charge of conversations in the Senate. This will all remain fluid and come down to the conference committee process, where fiscal leaders will be the end all decisionmakers on details governing the state’s only required bill that must be passed this year: our state’s biennial budget.

While discussions continue, this coming week will be a critical rest period for legislators, staff, and stakeholders alike – we will stay on top of these issues as we do every week, even though you will not see a Statehouse report again until the first week of March.

Hendricks County Chambers Update

This week at the Indiana General Assembly was a race to the finish as we hit key legislative deadlines. Any bill not heard and passed in its original chamber is now considered dead, although some language may resurface in other legislation. Lawmakers will now take a weeklong break and return on March 3rd for the second half of the session. This serves as your mid-session report—your next update will be on March 7th (there will be no report next week). Please reach out with any questions at any time.

 

Bill Updates:

Budget

HB 1001 - It was a big week and a big step for Indiana’s next biennial budget. This Monday, the House Ways and Means Committee heard amendments to the budget, HB1001. This amendment allocates $46.7B state dollars over the next 2 years. Chairman Jeff Thompson introduced his own amendment and stated that this budget was an “opportunity” - as he sees this as having many opportunities for growth and stability in Indiana. The proposed budget allows the state to continue cutting the income tax rate to 2.95% in 2026 and to 2.9% in 2027. The committee debated this and other amendments for nearly two hours.

The two largest pieces of the budget pie will go towards education and Medicaid. Many of Governor Braun’s budget priorities remain but the House did rearrange how state funds will be spent to spur economic growth. For example - the Indiana Economic Development Corporation (IEDC) sees over $2M cut in allocations but the Chairman explained they wanted to utilize dollars in a different manner to spur growth through incentives such as direct flights and industrial development.

K-12 school funding saw larger increases in the House budget as compared to the Governors budget. Education funding sees a 4.1% increase over the two years - to the tune of $520M and the House-version of the budget triples the amount of state dollars allocated for education initiatives. The Chairman described this as dollars to be used to expand flexibility and innovation around state academic improvement initiatives. This budget version does not include money for new university buildings but did fund deferred maintenance projects at the schools - both of which were not in the Governor’s budget request. Funding would be allocated for Career Scholarship Accounts to expand work-based learning opportunities and Education Scholarship Accounts to support students with special needs.

Lastly, childcare dollars were not as high in the House version of the budget. The Governor had over $350M in additional funding for the state child care development fund (CCDF) which would allow for every child to be served that is currently on the waiting list. The House version has that fund with $155M which will serve every family currently in service but does not serve those on the wait list.

Neither the House nor the Governors’ budget had an increase in cigarette tax although this has been a consideration discussed in the legislature for a few years now. During the amendment discussion in Monday’s committee hearing only one amendment from Rep. Ed Delaney was discussed on this topic. The amendment was received well by the policy makers - no one spoke against the policy and there was much consensus that the hurdle was not this committee it was the Senate who in the past has not been in favor. The amendment did not pass committee but a conversation around how the House would be open to that change happening in the Senate version of the bill. Stay tuned for conference committee for this topic!

Important to note: Key economic development programs like the 21st Century Research and Technology Fund and Manufacturing Readiness Grants would be funded and new tax credits would be enacted to support capital investments in rural areas and upskill more Hoosier workers.

The House budget passed 66-28 along party lines and now moves over to the Senate for further consideration. We expect to see hearings in committee as soon as March 5th.

Annexation of Residential Development

  • HB 1472 - This bill introduced by Rep. Steuerwald, allows the town of Plainfield in Hendricks County to annex noncontiguous residential developments along with the public highway rights-of-way connecting them to the town. This means that even if a residential area is not directly adjacent to Plainfield’s current boundaries, it can still become part of the town under specific conditions.
    • The annexation process begins when the homeowners association’s (HOA) board of a noncontiguous residential development petitions Plainfield’s legislative body for annexation. Once the petition is submitted, the town must pass a resolution to initiate the annexation process.
    • The bill is designed to provide a structured pathway for integrating certain residential areas into the town, allowing for more unified municipal services, zoning regulations, and community planning. This approach aims to enhance local governance, streamline service delivery, and foster more cohesive growth in the region.
    • This bill passed out of the House unanimously (94-0), and it’s now on its way to the Senate for consideration, sponsored by Sen. Clark.

Immigration

  • HB 1531 is this year’s immigration bill which was heard in House Judiciary Committee for nearly 3 hours on Monday. This legislation seeks to add to a 2011 law to require local communities to comply with federal immigration detainer requests. It also puts requirements on business interests in the state - specifically would ban employers from “knowingly or intentionally” recruiting, hiring or employing people not authorized to work in the U.S., starting in July of 2025. The bill also offers “reasonable diligence” to confirm someone’s work eligibility as an out - which could include using the E-Verify application or using industry-standard best practices “prescribed” by the attorney general. One amendment, taken by consent, assures government units facing civil lawsuits over their immigration enforcement efforts that the attorney general will defend them in court. A second amendment, also accepted by consent, made changes throughout — including deletion of a provision requiring schools to report information about “unlawfully present” and “non-English dominant” students.
    • A coalition of Chambers of Commerce testified as “neutral” on the bill, once the amendments were adopted into the bill - stating that they appreciated the removal of the 3-year look back, the inclusion of the mens rea provision of “knowingly and intentionally,” and looks to continue working on improving the Safe Harbor provision in section 11 of the bill. The bill passed out of committee along party lines 9-4.
    • The bill was further amended on the House floor to define “employer” as a person or agent that employs at least 10 employees in Indiana. The bill passed the House by a vote of 64-26 and moves to the Senate where Senators Koch and Garten are the sponsors.

DEI

  • SB 289 - A bill restricting diversity, equity, and inclusion (DEI) programs sparked intense debate last week in the Senate. Supporters argued it promotes transparency, while opponents cautioned that it could negatively impact marginalized communities. Controversy also surrounded Lieutenant Governor Micah Beckwith, who presided over the vote while live-tweeting about the bill while on the floor. Despite these concerns, the Senate passed the legislation with a 34-13 vote. The bill now advances to the House, where Representatives Jeter (R-Fishers) and McNamara (R-Evansville) will sponsor it for further review.

Housing and Building Matters

  • HB 1005 - This bill aims to improve Indiana’s housing infrastructure by promoting land use policies that increase housing density and affordability. Effective July 1, 2025, it gives priority access to housing assistance loans for participants adopting these policies. It also formalizes the role of private providers in plan reviews and inspections, setting clear guidelines and insurance requirements. The bill streamlines permit processing by enforcing strict response timelines for local authorities. The fiscal was removed in committee, but it is anticipated that it might come back in some fashion in the budget in the future.
    • The House Ways & Means Committee added the Residential Housing Infrastructure Assistance Program to the budget (HB 1001), allocating $25 million annually for the next two years. These funds will support local governments in financing infrastructure projects for new housing developments.
    • HB 1005 was unanimously approved on its 3rd reading in the House (93-0) and now advances to the Senate, where it will be sponsored by Sen. Rogers (R-Granger) and Sen. Garten (R-Charlestown).

Workforce Development

  • HB 1172 - Governor Braun’s plan to streamline small business support by creating an Office of Entrepreneurship and Innovation took a significant step forward with this bill. By consolidating existing state programs, the initiative aims to enhance business development without adding fiscal burden, as it is already accounted for in the governor’s budget.
    • The proposal gained traction despite concerns from some about its potential impact on Small Business Development Centers and fears of government overreach. Chambers of Commerce endorsed the measure, citing its potential to boost job creation and economic growth.
    • Following a 10-2 committee vote, the bill moved to Ways & Means, where lawmakers reinforced its benefits for business incentives. It passed with an amendment (21-1) before advancing to the full House.
    • Now, with bipartisan backing (85-7), the bill has cleared the House and is on its way to the Senate, where Sen. Buchanan (R-Lebanon) will lead its consideration.
  • SB 516 - This legislation establishes the Office of Small Business and Innovation to support entrepreneurship and economic development in Indiana. It aligns Innovation Development Districts (IDDs) with Tax Increment Financing (TIF) districts, requires local notification before the Indiana Economic Development Corporation (IEDC) purchases land, and allows schools to use funding for IDDs without restrictions.
    • The bill also clarifies IEDC operations, creates an IEDC president reporting to the Commerce Secretary, and removes legislators from the IDD board, raising concerns about representation and transparency.
    • In Senate Appropriations, the bill was amended to remove provisions allowing schools to receive incremental tax financing. The bill passed 49-0 in the Senate and now moves to the House, where Rep. Danny Lopez (R-Carmel) is the House Sponsor.

Childcare

  • SB 463 This bill aims to improve the quality and availability of childcare services in Indiana by implementing new regulations and standards for providers. It seeks to expand access to affordable childcare options, supporting working parents and enhancing children’s development, particularly in underserved communities.
    • The Senate Appropriations Committee amended the bill to remove both the tax credit and local matching grant portions. Conversations with bill author Sen. Charbonneau suggest an intent to restore this language in the budget, while coalitions are also working with House legislators to reinsert it.
    • The bill was amended on second reading to clarify that licensed childcare centers and homes may voluntarily adopt more restrictive staff-to-child ratios and group sizes. The bill has received strong support from several Chambers of Commerce, as childcare remains a priority for their employer members.
    • The bill passed out of the Senate with a vote of 44-5 and is now on its way to the House for consideration, where Rep. Devon will sponsor it.
  • Other childcare bills moving in the first half:
    • HB 1102 - a bill allowing public schools to contract with religious non-profits to provide pre-kindergarten services (something they already can do for out-of-school time programming). This bill moved out of the House unanimously (91-0).
    • HB 1248 - a bill on foster families accessing CCDF, was amended in Ways & Means to address priority for foster families and to require FSSA's secretary to set aside a small portion of CCDF vouchers for foster families. It moved out of the Ways & Means Committee unanimously. The CCDF waitlist issue still remains - which would impact the feasibility of this language. This bill passed out of the House 89-0 and moves on to the Senate.
    • HB 1253 - Representative Heine’s legislation with the multi-site licensure language, moved out of the House 91-0, where Senators Brown and Charbonneau will be the Senate Sponsors. This bill has been assigned to the Senate Family and Children Services committee.
  • In the House-passed version of the budget:
    • Funding for On My Way Pre-K remains flat at $27M per year and the School-Aged Child Care grant receives $800k per year.
    • It does include an appropriation of $40M annually for CCDF to address the wait lists - but it also includes $155M in "hold harmless" funds for families that are currently receiving CCDF vouchers. This would seem to mean the state would continue to reauthorize existing vouchers and allow something like a natural attrition process to happen back down to a lower level of enrollment.
    • The budget does not include the local child care assistance fund (the local matching grant program) that Governor Braun proposed in his version of the budget.

Road Funding

  • HB 1461 - This bill focuses on road funding in Indiana, modifying the Community Crossings Grant Program, originally established in 2017, to set a $200 million limit split between two tiers, with excess funds directed to local projects. The bill requires local governments to adopt a wheel tax to be eligible for these grants, a provision that has sparked controversy. It also reduces the local match requirement for small communities and clarifies bridge maintenance responsibilities.
    • Discussions included concerns over the wheel tax’s impact on local governments, potential alternative funding methods, and tolling provisions related to interstate highways. Amendments addressing retail delivery fees, vehicle excise tax updates, and regional tolling exemptions were proposed but failed, while an amendment exempting Allen County from certain provisions was adopted.
    • Despite concerns over the wheel tax from Rep. Smaltz (R-Auburn) and the tolling language from Rep. Harris (D-East Chicago), the bill passed out of committee with a vote of 14-9 and now moves forward to the House floor for 2nd Reading.
    • Two amendments were added on the House floor on second reading:
      • Amendment #2 addressed cities and towns that adopt a municipal vehicle excise tax after June 30, 2025.
      • Amendment #7 limited the amount of funding local units that have not adopted a wheel tax are eligible to receive. Additional language applied specifically to Marion County and matching funds.
    • The bill passed 72-21 and heads to the Senate where Senators Crider and Doriot will be the sponsors.
    • Bill summary can be found here.

Property Taxes

  • SB 1 Indiana’s omnibus property tax reform and a priority of Governor Braun - this bill aims to provide relief for homeowners while balancing the financial needs of local governments and schools. The originally drafted bill proposed raising the homestead deduction from a $45,000 maximum to a $48,000 minimum, plus 60% of the home's assessed value for properties valued at $125,000 or less, or just 60% of the assessed value for higher-valued homes. Additionally, it capped property tax growth at 2% for homeowners over 65 and 3% for everyone else.
    • The committee significantly amended the bill to include several key provisions:
      • A first-time homebuyer tax credit with a $75,000 income cap and a January 15 application deadline.
      • Expanded deductions for disabled veterans and seniors, with the assessed value (AV) threshold adjusted annually.
      • Language from SB 6, allowing local governments to defer property taxes for qualifying residents, managed by county treasurers with lien repayment options.
      • New maximum levy growth quotients (MLGQ) to reduce property tax burdens, freezing the MLGQ for three years, with a projected fiscal impact of $687 million by year three.
      • Limits school referendums to even-numbered years, with a cooling-off period and flexibility for safety and operating referendums.
    • Despite these amendments, concerns remain over school funding losses projected at $183 million by 2028, and the bill’s total fiscal impact could reach $800 million. Some lawmakers, including Sen. Qaddoura (D-Indianapolis), expressed skepticism about its effects on schools and public safety funding. Others, like Sen. Hunley (D-Indianapolis), acknowledged efforts to help homeowners but raised concerns about added hurdles for schools seeking referendums.
    • The bill passed out of committee with a vote of 10-3 and was then heard on second reading on the Senate floor, where many amendments were filed and debated but ultimately failed.
    • SB1 passed out of the Senate with dialogue on the amount of work that is still needed on this topic. Governor Braun agreed and threatened to veto the bill and call a special session if changes weren’t made in the second-half of session.
    • Despite this, the bill passed the Senate 37-10 and heads to the House, where the sponsors are Reps. Snow and Jordan. The Chairman of the House Ways Committee shared that this will be his first bill heard on the first day of his committee after the legislative break.
  • SB 443 - This bill introduces significant updates regarding business personal property taxation in Indiana. The threshold for tax exemption was increased from $80,000 to $100,000 for the total acquisition cost of a taxpayer's business personal property within a county. The effective date for these changes is January 1, 2025, with retroactive implications. It also streamlines the filing process by allowing taxpayers who qualify for the exemption to omit filing personal property tax returns for subsequent assessment dates unless eligibility is lost. Additionally, the bill includes provisions for taxpayers on how to report exempt business personal property details.
    • The bill passed on 3rd reading with a 39-7 vote and now moves to the House, where it will be sponsored by Rep. Snow (R-Warsaw).

DEAD BILLS

  • SB 345 - This bill aimed to reform Indiana’s property tax system by easing tax burdens, improving transparency, and refining assessments. It proposed partial tax exemptions for childcare centers, incentives for wastewater facilities, and updates to wage growth calculations.
    • While supporters, including the Indiana Manufacturers Association, saw benefits for workforce participation, concerns over restrictive property classifications led to the bill being held without another hearing before the deadline.

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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February 24th - 28th - Crossover Break (no session)

Thursday, April 10th - House and Senate Committee Report Deadline

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