2013 Indiana Legislative Session: the Halfway Point 2013 Indiana Legislative Session: the Halfway Point

2013 Indiana Legislative Session: the Halfway Point

On behalf of the Ice Miller and Ice Miller Strategies Public Affairs group, we would like to update you on the happenings around the Statehouse as the 2013 legislative session reaches its halfway point. Session began Monday, Jan. 7, 2013 and this long "budget-writing" session has been jam-packed with controversial bills. We have seen valiant efforts, however, on both sides of the aisle to remain civil and work together in passing bills that legislators hope will positively impact our state. Governor Mike Pence has proposed a budget to keep Indiana fiscally-balanced in our government spending, while continuing to expand efforts concerning job creation and education of Indiana's workforce. The House Roads and Transportation committee conducted a hearing that went long into the night hearing testimony on the mass transit bill. The federal health care reform bill saw much support, as well as opposition, in the Health and Provider Services committee. Many bills, including Sunday alcohol sales and ignition interlock devices on motor vehicles have "died," not making it through their first Chamber.  

While most time at the Indiana State House is spent advocating for serious and important issues affecting Indiana's population, there are moments where the legislators can take a step back from the pertinent issues. For example, the Senate got to communicate with an astronaut stationed at the International Space Station. President Pro Tem David Long led the conversation with Commander Kevin Ford, a flight engineer for the National Aeronautics and Space Administration and the brother of the late former state Senator David Ford.

Governor Mike Pence signed his first bill into law on Wednesday, Feb. 27, 2013. Pence signed SB 319 during a ceremony in his Statehouse office in front of a couple dozen farmers and legislative sponsors. The new law requires the State Department of Local Government Finance and Purdue University agriculture researchers to prepare a review of the soil productivity measurement for the legislature to consider next year. The governor said the bill is important because it will help keep Indiana farms competitive and allow the state to "avoid an unnecessary tax increase by the imposition of an assessment that doesn't take in the unique challenges that Hoosier agriculture faces."

Other legislation of note:

HB 1001—Biennial Budget

  • This bill appropriates money for capital expenditures, the operation of the state, the delivery of Medicaid and other services, and various other distributions and purposes.
  • Provides a school funding formula.
  • Authorizes a hospital assessment fee. Extends the health facility quality assessment fee indefinitely.
  • Allocates 1.5% of state gross retail tax collections to the motor vehicle highway account. Removes state police expenses from motor vehicle highway account distributions.
  • Provides that the inheritance tax expires on Jan. 1, 2018, rather than on Jan. 1, 2022.
  • Repeals the Indiana estate tax and Indiana generation skipping transfer tax.
  • Reallocates certain racetrack casino revenues and cigarette tax revenues.
  • Repeals the nursing scholarship and scholarships for special education, occupational therapy and physical therapy students. Establishes student teaching stipends for minority students and high need fields.
  • Transfers $150,000,000 to the state tuition reserve fund in each year of the biennium.
  • Makes numerous changes to the administration of state programs.
  • Passed the House by a 68-28 vote, and now moves to the Senate Appropriations committee.
HB 1002—Indiana Career Council
  • This bill establishes the Indiana career council to:
    • (1) align the various participants in the state's education, job skills development, and career training system;
    • (2) match the education and skills training provided by the state's education, job skills development, and career training system with the currently existing and future needs of the state's job market;
    • (3) oversee the Indiana workforce intelligence system;
    • (4) submit to the general assembly by Aug. 1, 2013 and August 1 annually, an inventory of current job and career training activities conducted by state and local agencies and private groups;
    • (5) submit, by July 1, 2014, a strategic plan to the general assembly to improve the state's education, job skills, and career training system; and
    • (6) submit to the general assembly by Dec. 1, 2013 a progress report concerning the strategic plan.
  • Passed the House by a 99-0 vote, and now moves to the Senate Rules and Legislative Procedure committee.
HB 1011—Public Mass Transportation
  • Authorizes the establishment of a metropolitan transit district by specified eligible counties through local public questions and provides for an appointed board to govern the metropolitan transit district.
  • Provides that the mass transit plans will be paid for by the distributive share of county adjusted gross income taxes, county option income taxes, or county economic development income taxes.
  • Authorizes the metropolitan transit district to:
    • (1) construct or acquire any public transportation facility;
    • (2) provide public transportation service by operating public transportation facilities; and
    • (3) issue bonds and otherwise incur indebtedness.
  • Passed the House by a 56-39 vote, and now moves to the Senate Local Government committee.
HB 1338—Charter School Administration
  • Among many new requirements and changes, the following provide a brief overview of what the legislation proposes:
    • Provides that a charter school is eligible to receive a school safety grant. Provides that a charter school will be able to use certain electronic meeting procedures.
    • Adds certain requirements to be contained in a proposal to establish a charter school pertaining to education service providers. Provides that a charter school is considered a local educational agency.
    • Provides that a charter contract may consist of more than one charter school.
    • Requires an authorizer to develop a charter school closure protocol.
    • Provides that a public audit of a charter school or organizer of a charter school is limited to the use of the public money received by the organizer of a charter school or the charter school.
    • Provides for the release to a charter school authorizer of certain covered records that are in the possession of the department of education or the state board of education and concern a charter school.
    • Repeals a provision that requires the city-county council of Indianapolis to approve a charter school authorized by the mayor of Indianapolis.
    • Repeals a provision that provides a governing body must obtain approval from the department of education (department) before granting a charter in which more than 50% of the students in the school corporation will attend the charter school.
    • Requires the department, with the approval of the state board of education (state board), to submit an annual report to the budget committee pertaining to virtual charter schools.
    • Provides that for purposes of administering state tuition support, a charter school organizer is considered a school corporation.
  • Passed out of the House by a 66-30 vote, and now moves to the Senate Education and Career Development committee.
HB 1589—Ports of Indiana Procurement and Public Works
  • Increases the threshold at which the ports of Indiana is required to publicly bid construction projects or purchases of equipment, materials, and supplies from $25,000 to $150,000.
  • Provides that a contract for construction or for the purchase of materials or supplies, may proceed immediately after the ports approves the contract.
  • Provides the grounds by which an emergency may be declared by the governing body of the ports and requires the reason for the declaration of emergency to be recorded in the governing body's minutes.
  • Passed the House by a 94-0 vote, and now moves to the Senate Tax and Fiscal Policy committee.
SB 162—Economic Development and Incentives and Reports
  • Provides that a recipient must provide information about its financial investment if a financial investment was a condition for an incentive.
  • Requires the Indiana Economic Development Corporation (IEDC) to include in its annual compliance report aggregate information on performance goals, the total number of actual jobs created, and the number of jobs expected.
  • Passed the Senate by a vote of 49-1, and now moves to the House.
SB 373—Agricultural and Industrial Operations
  • Makes it unlawful recording of agricultural or industrial operations, a Class A infraction, for a person, with intent to defame or to directly or indirectly harm the business relationship between an agricultural or industrial operation and its customers, to:
    • (1) enter real property that is owned by another person and on which agricultural operations or industrial operations are being conducted;
    • (2) take a photograph of or make a video recording or motion picture of the real property, structures located on the real property, or the agricultural operations or industrial operations being conducted on the real property; and
    • (3) distribute the photograph or recording; without the written consent of the owner of the real property or an authorized representative of the owner.
  • Passed the Senate by a vote of 30-20, and now moves to the House.
SB 521—Indiana New Markets Jobs Act
  • Provides for an Indiana new markets tax credit similar to the federal new markets tax credit.
  • Requires a qualified community development entity to pay the state a conditionally refundable fee of $500,000 and a nonrefundable application fee of $5,000 for each qualified equity investment that the qualified community development entity seeks to have approved by the Indiana Economic Development Corporation (IEDC).
  • Limits fees that may be charged to a qualified active low income community business.
  • Provides that the IEDC may not approve more than $10,000,000 of qualified equity investments that are eligible for the Indiana new markets tax credit per state fiscal year.
  • This bill requires an investment of capital by the investor for no less than 7 years.
  • Passed the Senate by a vote of 40-9, and now moves to the House.
SB 528—Gaming
  • This Bill would repeal the admissions tax (on riverboats only, $3 per person)
  • Allows limited lower taxation on promo/free play
  • Allows riverboats to expand within their footprint on land sites
  • Allows the Gaming Commission to waive certain requirements
  • Allows for live table games at racinos
  • Passed the Senate by a vote of 32-18, and now moves to the House.
SB 551—Federal Health Care Reform
  • Provides for negotiations between the office of Medicaid policy and planning and the United States Department of Health and Human Services (HHS) concerning a block grant system related to Medicaid.
  • Requires the office to apply to HHS to amend the state Medicaid plan to require Medicaid recipient cost sharing.
  • Provides for implementation of the federal Patient Protection and Affordable Care Act with respect to a health benefit exchange in Indiana.
  • Specifies requirements for health plans issued through an exchange, including application of Indiana insurance law.
  • Passed the Senate by a vote of 44-6, and now moves to the House.
SJR 0007—Constitutional Right to Hunt and Fish
  • Provides that the people have a right to hunt, fish, harvest game, or engage in the agricultural or commercial production of meat, fish, poultry, or dairy products, which is a valued part of our heritage and shall be forever preserved for the public good, subject to laws prescribed by the general assembly and rules prescribed by virtue of the authority of the general assembly.
  • Provides that hunting and fishing are the preferred means of managing and controlling wildlife.
  • This Joint Resolution has been approved by one General Assembly, and if it passes this year, it will be voted on by the public as a referendum in the next election.
If you have any questions about Indiana, Ohio or Illinois legislation, regulation and procurement opportunities and how they could impact your business, please contact one of the professionals in the Ice Miller Public Affairs Group.


Ice Miller Attorneys—Indianapolis 
John Hammond 
Lacy Johnson 
Thomas John 
Mark Shublak 
Ice Miller Strategies Attorney—Indianapolis 
Lawren Mills
Ice Miller Practice Group Specialists—Indianapolis 
Lesa Dietrick 
Anne Doran 
Carl Drummer
Ice Miller/Ice Miller Whiteboard Attorneys—Columbus 
John Oberle 
Deborah Pryce
Ice Miller Whiteboard Principals—Columbus 
David Battocletti
Ice Miller Attorney—DuPage
Bob Schillerstrom
Ice Miller Strategies Attorneys-Washington, D.C. 
Clayton Heil
Graham Hill


This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.


View Full Site View Mobile Optimized