Indiana's Administrative Law Bill Moves Forward

HB 1003 / Chamber Supports

Authored by Rep. Greg Steuerwald (R-Avon), this bill as amended eliminates the Office of Environmental Adjudication (OEA) and transfers proceedings to the Office of Administrative Law Proceedings (OALP) while keeping the requirements of expertise in environmental and administrative law. It also makes the OALP the ultimate authority in any administrative proceeding under its jurisdiction with certain exceptions.

The Chamber supports the bill with concerns. We would like to see the measure further amended to allow deference to the agency interpretations if the court determines they are warranted.

The bill was heard in the House Judiciary Committee on Thursday and amended in committee based on recommendations from the Chamber, the Indiana State Bar Association and several other organizations representing industry and agriculture. It passed out of the committee 11-0.

Tuesday, January 23, 2024

Indiana Environmental Bills on PFAS, Wetlands, Public Hearings Clear Hurdles

PFAS Chemicals
HB 1399 / Chamber Supports

Representative Shane Lindauer (R-Jasper) introduced legislation that clarifies the existing state definition of PFAS chemicals. It requires the Environmental Rules Board to use the definition in certain rules concerning industrial processes and research and development.

The current definition currently in Indiana Code is based on the more hazardous soluble firefighter foam that degrades and can accumulate/permeate water, soil and cells. However, non-soluble PFAS/PFOA is an important product that is safer and used in various industries and products including medical devices, pharmaceuticals, metals, automotive and food packaging.

Chairman Rep. Alan Morrison (R-Brazil) heard the bill in the House Environmental Affairs Committee on Thursday. It passed 7-5.

Wetlands
HB 1383 / Chamber Supports

Authored by Rep. Morrison, this bill clarifies various wetland definitions and eliminates certain wetland rulemaking requirements. It also provides that certain wetland activity requires state authorization and clarifies the compensatory mitigation that must be offered to offset certain wetland activity.

There has long been confusion over who regulates and what is regulated when wetlands are involved. The Chamber has traditionally opposed legislation that reduces protections on wetlands. This bill does not substantially reduce the protection of wetlands. It also clarifies Indiana Department of Environmental Management (IDEM) procedures, definitions and practices regarding wetland interpretation and regulation.

The bill was heard in the House Environmental Affairs Committee on Thursday and passed 8-4 along party lines.

Notice of a Public Hearing or Meeting
HB 1276 / Chamber Supports

Representative Ed Soliday (R-Valparaiso) introduced legislation that requires IDEM to communicate within 10 days of a public comment closing period to provide notice as to whether or not a public hearing or meeting is going to be held before the issuance or denial of a permit.

This bill promotes efficiency and regulatory certainty which will help regulated businesses make decisions in a timely manner. Representative Morrison heard the bill in the House Environmental Affairs Committee on Thursday, and it passed out of the committee 12-0.

Tuesday, January 23, 2024

SB 133 / Chamber Supports

On Thursday, the Senate Commerce and Technology Committee, under the new leadership of Sen. Brian Buchanan (R-Lebanon), heard testimony on Senate Bill 133 (Supplier Diversity for Political Subdivisions), authored by Sen. Liz Brown (R-Fort Wayne).

The Indiana Chamber worked closely with Sen. Brown to draft thoughtful legislation that would benefit the hundreds of small businesses, including numerous Chamber members, who seek women, minority and/or veteran business enterprise (collectively, “XBE”) certifications from both the state and city agencies. (Note: Evansville, Fort Wayne, Indianapolis, South Bend and Terre Haute all have local XBE programs.)

By way of background, the Indiana Chamber’s economic development policy committee met throughout last summer with a focus on identifying solutions, legislative or otherwise, that would help Hoosier entrepreneurs. One idea that surfaced was eliminating bureaucratic red tape for XBE companies; specifically, if a company already jumped through all the hoops at the state level – and received a state-issued XBE certification – then cities would be required to recognize that certification for procurement purposes. This would save companies time, effort and money – all of which are especially sacred for small businesses.

Ohio overwhelmingly enacted this exact same legislation in 2022 with widespread support from women, minority and veteran-owned businesses and organizations. Read the full story.

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Tuesday, January 23, 2024

Indiana Senate Committee Considering Legislation to Support Local Tourism

SB 61 / Chamber Supports

Bills to Boost Reading, Childcare Clear Senate Committees

SB 1 and 2 / Chamber Supports

With legislation aimed at improving reading and literacy rates topping Senate Republicans’ 2024 agenda, the Senate Education Committee passed Senate Bill 1 on reading skills this week on a 9-4 party-line vote. The legislation is authored by Sens. Brian Buchanan (R-Lebanon), Jeff Raatz (R-Richmond), and Linda Rogers (R-Granger).

Nearly one in five Indiana students has failed the state’s third-grade reading test in recent years and roughly the same ratio of Hoosier adults lack basic literacy skills today, so there’s little disagreement that reading proficiency is cause for concern.

Legacy Partners

Backed by the Chamber during more than two hours of committee testimony, SB 1 contains several measures to help address the issue, including earlier screening and identification of reading deficiencies in elementary school, increased reading interventions and summer-school supports, and clearer state guidelines regarding when students who can’t read should be held back, aka “retained.” The retention provision is where senators parted ways this week – with Republican committee members arguing that retention was a necessary “last resort” to prevent struggling students from slipping further behind and Democrats expressing concerns about unintended consequences, inadequate parent exemption options, and the need to delay until other recent reading reforms have time to take effect. Given the potential impact on state expenditures, the bill is headed to a hearing in the Senate Appropriations Committee next week.

Senate Bill 2, authored by Sen. Ed Charbonneau (R-Valparaiso), passed the Senate Health Committee on a unanimous 11-0 vote this week with the Chamber and a broad-based coalition of advocates testifying in support.

Childcare accessibility and affordability have emerged as a statewide infrastructure challenge that has significant implications for student learning, labor force participation, and economic development, and employers across Indiana cite the issue among their top workforce barriers. With the strong urging of the Chamber and its members, the General Assembly has taken notice and begun to take meaningful action in recent years.

In 2023, lawmakers increased family eligibility for early learning and childcare vouchers, established new employer tax credits to incentivize businesses to increase childcare access and capacity in their communities, and initiated a third-party review aimed at streamlining the state's complex and often burdensome childcare regulations while maintaining safety standards. To maintain that momentum in 2024, SB 2 emphasizes non-fiscal items during this short session that include accelerating state rulemaking on the aforementioned regulatory reforms, expanding support for childcare workers and hard-to-serve childcare deserts, and increasing data reporting transparency regarding the state’s investments in early learning.

Senate Bill 2 now heads to Senate Appropriations for further consideration.

2024 Indiana General Assembly Legislative Directory: This publication keeps you connected with state legislators during the session and beyond. It's available as both a booklet and an app. Each contains contact information for all 150 state legislators and much more. Booklets are in stock and bulk discounts are available. Order online or by calling (800) 824-6885.

Bipartisan Congressional Agreement on Tax Extenders, Child Tax Credit

HR 7024 / Chamber Supports

Key members of Congress announced this week a tentative agreement on an expansion of the child tax credit as well as extensions of important tax relief for business. The agreement, announced by Senate Finance Committee Chair Ron Wyden (D-OR) and House Ways and Means Chair Jason Smith (R-MO), has been introduced in the House as the Tax Relief for American Families and Workers Act of 2024. The legislation enables businesses to immediately deduct (known as full expensing) U.S.-based R&D investments rather than amortize those investments over five years. This change alone is expected to save American businesses an estimated $82.7 billion in 2024.

The bill also extends the allowance for depreciation, amortization, or depletion in calculating the limitation on the deduction of business interest which will help lower the cost of capital for thousands of businesses. Included as well is an extension of 100% bonus depreciation on qualifying property placed in service after December 31, 2022, saving businesses an estimated $32.8 billion in 2024.

Finally, the legislation provides for an increase of the limit on depreciable asset expensing to $1.29 million from the current $1 million and these limitations will be adjusted for inflation beginning after 2024.

These reforms are most welcome to the business community and the Chamber will be actively engaging the Indiana federal delegation to encourage support for the legislation.

Chamber Fights for Employers’ Ability to Control Health Care Costs

SB 3 / Chamber Opposes

The Indiana Senate Health and Provider Services Committee heard and passed Senate Bill 3, authored by Sen. Tyler Johnson (R-Leo), which addresses the use of prior authorizations by insurance carriers. The Chamber testified in opposition yesterday to this legislation, which dramatically reduces the ability of employers to use prior authorization as a tool to contain health care costs.

Prior authorization is a cost-control process that requires patients to get approval from their health plan before receiving a service or medication. The plan uses this approval to determine if the care is medically necessary and covered.

Different health plans have different rules for when prior authorization is required. For example, medications that may be unsafe when combined with other medications, or medical treatments that have alternatives with lower costs but equal effectiveness, may need prior authorization.

The bottom line is prior authorization is about managing costs. Healthcare expenses are a major part of employee benefits, and unchecked, they can threaten any employer’s bottom line and stifle the ability to offer competitive packages. Prior authorization acts as a filter, ensuring appropriate utilization of expensive treatments and medications. It helps to weed out unnecessary procedures and promotes cost-effective alternatives, putting brakes on runaway healthcare inflation. This allows employers to invest in other areas that benefit employees, like wages, training, and wellness programs.

Not all services require prior authorization. Most private health plans use prior authorization to some degree, but the specifics vary from one health plan to another in terms of which services need prior authorization. In general, the more expensive the service is, the more likely it is to have a prior authorization requirement.

The Chamber recognizes the immense scale of time and money used by providers to comply with prior authorization requirements. The Chamber would like to see that burden alleviated by streamlining the process to free up resources for patient care and lower pricing. It is our belief this can be done through a collaborative approach from all stakeholders – without legislation that could increase healthcare costs to employers.

We will continue to work with legislators, allied organizations, and Chamber stakeholders to protect an employer’s ability to control health care costs through the use of prior authorization.


2024 Chamber Day Dinner

The 2024 Chamber Day Dinner is on February 13 at the Indiana Roof Ballroom. This is the premiere business and legislative event of the year. It will feature a keynote from Dr. Richard Haass, author of Bill of Obligations: 10 Habits of Good Citizens. Dr. Haass is president emeritus of the Council on Foreign Relations (CFR). He previously served as CFR’s president for 20 years, in the State Department under Presidents George W. Bush and Ronald Reagan, at the White House under George H.W. Bush, and at the Pentagon under Jimmy Carter. Register now.

Senate Committee Considering Legislation to Support Local Tourism

SB 61 / Chamber Supports

The Tax and Fiscal Policy Committee considered a bill this week that would allow for a new revenue source to support local tourism. Senate Bill 61, authored by Sen. Travis Holdman (R-Markle), establishes a process for designating a tourism improvement district (TID) in which the businesses and property owners within the district contribute an annual assessment to support tourism promotion and asset development. The annual assessment must be based on the calculated benefit that the business or property owner would receive because of the investment. For a TID to be designated, at least 50% of the businesses or property owners within the district must sign a petition in support of the designation.

While the Chamber is supportive of the TID concept, there are additional protections we are recommending to ensure this is a positive and collaborative tool for local communities. First, signatories to a petition to create a TID should constitute at least 50% of the assessed value in the proposed district as a safeguard against large taxpayers being overruled by smaller taxpayers. Alabama recently enacted a similar TID law, and this safeguard was included in that legislation. Additionally, any bonds issued against TID revenues should have a maximum maturity that aligns with the initial term of the district. Finally, as the amount to be assessed is to be proportional to the benefit received by the business or property owner, there must be a strict methodology for assigning benefits, otherwise, there will be inequity in how the district is financially supported.

The bill was held while an amendment was prepared, which will likely include many of these safeguards. This concept has the potential to enable communities to make strategic investments in assets and programs that will improve the quality of life, which is a key pillar of the Chamber’s Indiana Prosperity 2035 plan.

Tuesday, January 23, 2024

Indiana Chamber Fights for Employers’ Ability to Control Health Care Costs

SB 3 / Chamber Opposes

The Indiana Senate Health and Provider Services Committee heard and passed Senate Bill 3, authored by Sen. Tyler Johnson (R-Leo), which addresses the use of prior authorizations by insurance carriers. The Chamber testified in opposition yesterday to this legislation, which dramatically reduces the ability of employers to use prior authorization as a tool to contain healthcare costs.

Prior authorization is a cost-control process that requires patients to get approval from their health plan before receiving a service or medication. The plan uses this approval to determine if the care is medically necessary and covered.

Different health plans have different rules for when prior authorization is required. For example, medications that may be unsafe when combined with other medications, or medical treatments that have alternatives with lower costs but equal effectiveness, may need prior authorization.

The bottom line is prior authorization is about managing costs. Healthcare expenses are a major part of employee benefits, and unchecked, they can threaten any employer’s bottom line and stifle the ability to offer competitive packages. Prior authorization acts as a filter, ensuring appropriate utilization of expensive treatments and medications. It helps to weed out unnecessary procedures and promotes cost-effective alternatives, putting brakes on runaway healthcare inflation. This allows employers to invest in other areas that benefit employees, like wages, training, and wellness programs.

Not all services require prior authorization. Most private health plans use prior authorization to some degree, but the specifics vary from one health plan to another in terms of which services need prior authorization. In general, the more expensive the service is, the more likely it is to have a prior authorization requirement.

The Chamber recognizes the immense scale of time and money used by providers to comply with prior authorization requirements. The Chamber would like to see that burden alleviated by streamlining the process to free up resources for patient care and lower pricing. It is our belief this can be done through a collaborative approach from all stakeholders – without legislation that could increase healthcare costs to employers.

We will continue to work with legislators, allied organizations, and Chamber stakeholders to protect an employer’s ability to control health care costs through the use of prior authorization.

Tuesday, January 23, 2024

Indiana Bipartisan Congressional Agreement on Tax Extenders, Child Tax Credit

HR 7024 / Chamber Supports

Key members of Congress announced this week a tentative agreement on an expansion of the child tax credit as well as extensions of important tax relief for business. The agreement, announced by Senate Finance Committee Chair Ron Wyden (D-OR) and House Ways and Means Chair Jason Smith (R-MO), has been introduced in the House as the Tax Relief for American Families and Workers Act of 2024. The legislation enables businesses to immediately deduct (known as full expensing) U.S.-based R&D investments rather than amortize those investments over five years. This change alone is expected to save American businesses an estimated $82.7 billion in 2024.

The bill also extends the allowance for depreciation, amortization or depletion in calculating the limitation on the deduction of business interest which will help lower the cost of capital for thousands of businesses. Included as well is an extension of 100% bonus depreciation on qualifying property placed in service after December 31, 2022, saving businesses an estimated $32.8 billion in 2024.

Finally, the legislation provides for an increase of the limit on depreciable asset expensing to $1.29 million from the current $1 million and these limitations will be adjusted for inflation beginning after 2024.

These reforms are most welcome to the business community and the Chamber will be actively engaging the Indiana federal delegation to encourage support for the legislation.

Tuesday, January 23, 2024

Indiana Legislative Update - 1.19.24

This week, the state legislature saw movement with many pieces of legislation, both in the House and Senate. HB 1002, which aims to define antisemitism, saw significant pushback in committee last week from Palestinian rights activists, and support from Jewish high school and college students across Indiana. Ultimately, the bill passed out of the House unanimously, but faced additional opposition this Thursday, where Palestinian rights activists protested outside the House Chamber for its third reading in the House. The bill passed the House unanimously by an 81-0 vote, and will now head to the Senate.

SB 3, a bill reforming prior authorization for healthcare services, has received support from both parties. In its hearing on Wednesday, the Senate Committee on Health and Provider Services heard a long line of testimony, both in support and opposition to the bill. Organizations such as the Indiana Hospital Association, Indiana Public Health Association, and Hoosiers for Affordable Healthcare all spoke in support of the legislation, while organizations such as the Indiana Association of Health Clinics and Indiana Manufacturers Association spoke against it. The committee votes, however, were not as divided, as the bill passed unanimously by a vote of 10-0.

The Republican agenda is moving full steam ahead, despite Democratic opposition. HB 1001, which addresses higher education grant uses, passed both the House Committee on Education as well as the House Ways and Means Committee along party lines. Similarly, SB 1, which aims to strengthen third-grade retention rates based on reading proficiency, passed out of the Senate Committee on Education and Career Development along party lines by a vote of 9-4.

SB 14 has received news coverage in recent days, as it attempts to give the Attorney General, State Comptroller, Secretary of State, and Treasurer of State, along with any of their employees, the ability to carry a handgun within the state capitol complex. The bill was amended and passed 5-2 out of the Senate Committee on Corrections and Criminal Law. Another bill receiving attention is SB 52, which seeks to ban the use of dedicated bus lanes for a year, including IndyGo's Blue Line. The bill saw significant discussion and testimony from many on both sides of the issue and was passed out of the Senate Appropriations Committee by a vote of 7-5.


Top Legislation of Interest

SB 61 Tourism Improvement Districts
Author: Senator Holdman (R-Markle)

Provides that a person may circulate a petition to create a tourism improvement district (district) within the territory of a county, city, or town. Specifies the contents of the tourism improvement district plan that must be filed with a petition to establish a district.

This bill is currently identical to HB 1345. SB 61 received its first hearing and was referred to the Senate Tax and Fiscal Policy Committee. It had a hearing on Tuesday, January 16, at 9:30am. The hearing was testimony only, and no votes were cast on the bill.

HB 1345 Tourism Improvement Districts
Author: Representative Baird (R-Greencastle)

Provides that a person may circulate a petition to create a tourism improvement district (district) within the territory of a county, city, or town. Specifies the contents of the tourism improvement district plan that must be filed with a petition to establish a district.

This bill is currently identical to SB 61. HB 1345 received its first hearing and was referred to the House Ways and Means Committee. Ways and Means is expected to meet sometime next week.

Friday, January 19, 2024

Indiana House Education Committee Tweaks 'Career Scholarships'

HB 1001 / Chamber Supports

Last year, House Enrolled Act 1002 was the vehicle for making good on House Speaker Todd Huston’s stated goal to “reinvent high school” in an effort to better prepare students for today’s workforce. The adopted bill included several Chamber-backed provisions aimed at: 1) expanding apprenticeship and related work-based learning opportunities; 2) aligning high school graduation requirements with postsecondary education and business/industry expectations; 3) enhancing career exploration and coaching support for students; and 4) providing flexible funding to help students participate in work-and-learn experiences and earn industry-recognized credentials during high school.

The last item on that list created Career Scholarship Accounts (CSA), a new state grant fund that provides high school students up to $5,000 for costs associated with work-based learning experiences, postsecondary coursework/credentials and related job training programs. Fast-forward to the 2024 session, and House Bill 1001 attempts to both refine and expand upon last year’s legislation. Proposed changes include allowing students to use CSA funds to obtain driver's licenses (to remove job-related transportation barriers) and tap into state dollars (traditionally earmarked for college financial aid programs) to complete postsecondary coursework and earn industry-recognized credentials while still in high school. That later provision received significant pushback from Democrat lawmakers on the House Education Committee this week, but the bill passed on a 9-4 vote along party lines with the Chamber testifying in support.

Friday, January 12, 2024

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Friday, January 12, 2024

Remarks as delivered by Suzanne P. Clark, President and CEO of the U.S. Chamber of Commerce, at the State of American Business event on January 11, 2024.

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Thursday, January 11, 2024

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Monday, January 01, 2024