By Regional Chamber of Northeast Indiana
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March 14, 2025
Senate This week, the Senate Appropriations Committee began budget hearings. The committee heard from Chairman Thompson about the House budget and heard presentations from Indiana’s public universities, the Indiana Supreme Court, and the various members of the Governor’s Cabinet. These discussions are the next step in the ongoing discussion of HB 1001, State budget (Sponsor: Sen. Ryan Mishler, R-Mishawaka). On Tuesday, Senate Tax and Fiscal Policy voted unanimously to pass an amended version of HB 1142, Local Income Tax Council (Sponsor: Sen. Travis Holdman, R-Markle) by a 13-0 vote. HB 1142 would extend the expiration of provisions concerning a county with a single voting bloc and the allocation of votes for a local income tax council. The amendment extended the sunset from 2026 to 2027. This bill will continue to the Senate floor for second reading. Senate Corrections and Criminal Law heard House Republican priority bill HB 1006, Prosecutors, sponsored by Sen. Aaron Freeman (R-Indianapolis). The committee took testimony and decided to hold the bill for amendments at a later meeting. As written, this bill establishes the special prosecutor unit, the prosecutor review board, and the public prosecution fund and guidelines, standards for services under which counties may be eligible for reimbursement for prosecution expenditures. HB 1006 passed the House 72-24 . House On Wednesday, House and Ways and Means thoroughly discussed a proposed committee amendment for SB 1, Property tax relief, (Sponsor: Rep. Jeff Thompson, R-Lizton). This amendment – the same language as HB 1402, Local government finance (Rep. Thompson) - will gradually eliminate business personal property taxes on new equipment and increase the tax exemption threshold from $80,000 to $200,000 over six years. It restructures local income tax (LIT) policies by raising the maximum county LIT rate to 2.9% in 2027, allowing cities to impose their own LIT up to 1.2%, and eliminating LIT for non-residents working in the county. Finally, it also phases out some property tax deductions in favor of a local tax credit, restructures how LIT revenue is distributed, and shifts the decision-making authority over local tax rates to county and city fiscal bodies. The discussion on this amendment was another significant milestone in the legislative process as the House continues to determine the best approach to the ongoing property tax debate. After hearing from many different organizations, the House Education Committee decided to hold SB 146 Teacher compensation, (Sponsor: Rep. Jake Teshka, R-North Liberty) for amendments and further discussion. This bill addresses the issue of teacher compensation by raising the minimum salary to $45,000 and requires that school corporations must expend an amount for teacher compensation that is not less than 65% of state tuition support. Secretary of Education Katie Jenner was there to testify on behalf of Governor Braun’s administration, as SB 146 was specifically mentioned in his State of the State address as a priority. House Courts and Criminal Code unanimously passed SB 74, Extension of lifeline law immunity , (Sponsor: Rep. Wendy McNamara, R-Evansville) 13-0 . This bill grants individual's immunity from prosecution for certain crimes if they are reasonably believed to have a health condition caused by alcohol consumption and received help from someone who called emergency services on their behalf. House Elections and Apportionment heard testimony SB 10, Voter registration (Sponsor: Rep. Kendell Culp, R-Rensselaer), and decided to hold the bill to amend and vote on next week. As written, the bill clarifies that school ID is not a valid form of voter identification. Counties must also update voter lists by removing inactive voters and verifying deaths through records shared by local health officers. The committee also amended and voted to pass the heavily debated SB 287, School board matters (Sponsor: Rep. J.D. Prescott, R-Union City). This bill creates the framework for partisan school board elections. Today’s amendment removed the primary process for nomination and specifies that a straight party vote does not count for a candidate for school board office. The bill now mirrors Rep. Prescott’s HB 1230, School board elections , which made it through committee in the first half but died without a final vote on the Third Reading Deadline. After taking testimony last week, the House Utilities, Energy and Telecommunications Committee discussed the impacts of SB 457, Carbon dioxide sequestration (Sponsor: Rep. Ed Soliday, R-Valparaiso) and passed the bill unamended 11-2 . Amongst other regulatory provisions, this bill sets regulations for carbon dioxide transmission pipelines, requiring applicants to meet Indiana utility guidelines and prove experience in pipeline construction and operation. This bill passed the Senate narrowly 27-21 . House Utilities, Energy and Telecommunications also considered SB 424, Small modular nuclear reactor development costs (Sponsor: Rep. Ed Soliday, R-Valparaiso). After taking lengthy amount of testimony, the committee amended , discussed, and approved SB 424 by a 10-3 vote. This bill allows public utilities to seek approval from the Indiana Utility Regulatory Commission (IURC) to incur and recover development costs for small modular nuclear reactors (SMRs). It establishes criteria for IURC review, sets timelines for approval, and outlines how utilities can adjust rates to recover costs, including an 80/20 split between immediate and deferred recovery. This bill passed the Senate 34-14 . House Judiciary Committee heard SJR 21, Terms of members of Congress , sponsored by Rep. Dave Hall (R-Norman). The resolution passed out of committee 10-2 and has since been engrossed unamended on second reading on the House floor, clearing the way for a final third reading vote as early as Monday. This resolution would have Indiana apply to Congress for a Convention for proposing a term limit Amendment under Article V of the Constitution of the United States. House Roads and Transportation heard emotional testimony on SB 183, Rural intersection safety , (Sponsor: Rep. Jim Pressel, R-Rolling Prairie). This bill attempts to solve the issue of clear vision at rural intersections. As written, it requires that owners or lessees of agricultural land at intersections without traffic signals must maintain a clear line of sight. Crops, vegetation, structures, or other obstructions over three feet tall are not allowed, except for trimmed trees with clear vision above six feet. Landowners or lessees who fail to comply may be notified, held liable for accidents, and certain provisions do not apply to critical infrastructure. This bill was held for amendments, with legislators noting that they are confident that they’ll be able to solve this issue. Governor’s Office Governor Braun signed two executive orders on Wednesday, both targeting the state’s environmental policies. These orders streamline regulations, reduce compliance burdens, and ensure environmental policies are based on science rather than social criteria. EO-25-37: Prohibiting the use of environmental justice in permitting enforcement or grant decisions – This executive order prohibits state agencies from using “environmental justice” as a factor in environmental permitting, enforcement, or grant decisions. EO-25-38: Creating opportunity through reduction of excessive environmental regulation – This order prevents the state from adopting environmental regulations stricter than federal standards unless required by state law or deemed necessary by the Governor’s Office. The governor then signed one more executive order this morning targeting antisemitism. The executive order directs the Indiana Commission for Higher Education to review the policies of Indiana’s state educational institutions related to antisemitism, and each institution’s response to any acts of antisemitism that have occurred on campus since the October 7 terrorist attack in 2023. When available, the EO can be viewed here .