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3/21 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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The slow march (forward?)

The week was kicked off by a boisterous rally in support of property tax reform, with hundreds of attendees (including Governor Braun) despite no one knowing what form SB 1 will take when it is heard again before the House Ways and Means Committee (the next meeting has not yet been announced). Despite the numerous calls to action from a variety of constituencies regarding the need for changes, no clear vision has risen to the top (yet) and the highly anticipated release of amendments to SB 1 will likely happen in coming weeks.

Legislation targeting healthcare costs still continues to receive extended debate, with HB 1004 receiving another hours-long hearing this week though provider mergers and acquisitions also dominates concerns. HB 1004 passed the Senate Committee on Health and Provider Services, after back-and-forth about the effectiveness of the bill. HB 1004 heads to Senate Appropriations for further debate, and if last week’s debate proves true, we will see more amendments to the language.

After the merger and acquisitions piece passed the House, it took a few weeks for HB 1666, which creates more transparency and oversight to receive a hearing and pass the Senate Health and Provider Services Committee. The bill now heads to the Senate floor, where it will likely attract further scrutiny.

Speaking of healthcare legislation, SB 2 passed the House Public Health committee after hours of debate with the committee removing the controversial waitlist for HIP 2.0. The bill continues its path forward via the House Ways and Means Committee where many hope the prohibition of advertising by non-profits will be addressed.

 

Education issues gaining speed

Federal drama pressuring legislative discussions about K-12 education drove a preponderance of floor debate this week, with legislators duking it out on SB 287 which deals with partisan school boards. This is all occurring while a rather tenuous undercurrent of public vs. charter funding controversy continues to run through the building. SB 287 was overhauled last week when the House Elections Committee returned its version of the partisan school board bill that ended up dying on the House calendar in February.

After being scheduled for a hearing but needing more time to prepare amendments, the Senate Education Committee will hear Chairman Bob Behning’s education deregulation bill, HB 1002, next week.

We would be remiss in not reporting that public testimony for HB 1001, the state’s biennial budget, occurred this week, with almost three hours of testimony. Earlier in the week, the Senate Subcommittee on K12 funding for testimony on issues related to school funding only. Amendments to the bill will likely be revealed the first week of April, with discussion on the floor that same week.

 

Priority legislation that hasn’t marched yet

HB 1008, which seeks to acquire counties that want to succeed from the State of Illinois, has not yet been heard in the Senate. Speaker of the House Todd Huston (R-Fishers) crafted HB 1008, saying back in January that more than 100,000 Illinoisans have chosen to leave their state for Indiana because of reasons including our business-friendly regulatory environment and tax climate.

Also awaiting a hearing, as we told you last week, is HB 1007 which is a comprehensive energy bill addressing small modular reactor development, though that bill will likely be heard soon.

SB 3, which targets pharmacy benefit managers (PBMs) and other healthcare entities for reform, has not been scheduled for a hearing yet - but we anticipate will move. HB 1003, will be heard in Senate Health and Provider Services Committee on Wednesday.

With only three more weeks until Committee deadline, the (Hunger Games) race to get your legislative fix is on. Stay tuned for more updates and reach out to us if you have any questions.

Hendricks County Chambers Update

It was an incredibly busy week with committee meetings abound. Priority bills were heard this past week and will continue through next week as we head to the committee report deadline of April 10th. As a reminder, it’s a weird time of session where bills are often heard but not voted upon quite yet as negotiations are happening behind closed doors on final versions of the bills. Add to that the April revenue forecast taking place on April 15th, which will outline just how much money the Indiana General Assembly can spend. Please reach out to us with any questions as we get closer to Sine Die.

 

Bill Updates:

Budget

HB 1001 - This week, the Senate Appropriations Committee held public testimony on HB 1001, the biennial budget. They had over three hours of testimony from the public on all issues with the exception of the K12 budget (as this was heard by the subcommittee on Monday). This is the last public step in the committee process before the Senate creates their budget bill amendment to put into HB1001. We anticipate that this amendment will most likely be shared publicly in 2+ weeks from now.

As stated above, the Subcommittee Hearing on Educational funding took place on Monday. The Subcommittee allowed for discussion on general K12 funding, high-ability funding, and summer school funding. A significant portion of the time was spent on the differences of funding for traditional public schools, charter schools, and voucher schools. All of this will determine the Senate’s priorities for funding, which we should finalize in the last weeks of session. More information can be found here.

 

Childcare

SB 463 - This bill seeks to improve childcare quality and accessibility across Indiana by updating provider standards and expanding options—particularly in underserved communities. It includes provisions to support the development of microcenter pilot programs, increase transparency on staff-to-child ratios, and expand the advisory committee to include representatives from out-of-school time programs. Although the Senate Appropriations Committee removed tax credit and local matching grant language, there were discussions in the House committee this week to reinstate that provision. Coalition partners, including business and education groups, continue to push for these provisions in the House.

  • The House Family, Children and Human Affairs Committee took testimony this week on the bill. The FSSA expressed support, highlighting the bill’s inclusion of out-of-school representatives and the requirement to publicly post ratio guidelines. FSSA also supports the microcenter pilot, which must include participation from at least five childcare licensees.
  • Stakeholders across sectors voiced strong support. Sam Barnett of the Indiana Afterschool Network and Sam Snideman of United Way of Central Indiana praised the inclusion of out-of-school voices on the advisory committee and the microcenter pilot’s potential to address capacity. Educators supported clearer training requirements and proposed allowing supervised high school students to count toward ratios to expand the workforce.
  • An important piece of the conversation focused on staff-to-child ratios, with a second-reading amendment having already clarified that providers may voluntarily adopt stricter ratios. Several committee members asked about safety, staff training, and group size exceptions—especially in larger spaces like cafeterias and playgrounds.
  • Caryl Auslander, representing a number of Chambers of Commerce and economic development organizations emphasized that access to quality, affordable childcare is a pressing economic issue. She reiterated that employers view childcare access as critical to workforce stability and talent retention, supporting the amendments and broader goals of the bill. While she did not speak directly to specific ratio numbers on behalf of the chambers, she acknowledged the importance of balancing access with child safety.
  • Additional support came from representatives of the Indiana Manufacturers Association, school districts, and others who highlighted the role of childcare in workforce participation and early education. Many called for the restoration of tax credits and matching grants to incentivize employer participation and expand provider capacity.
  • SB 463 was held in committee, with members indicating that amendments are still forthcoming.

 

Road Funding

HB 1461 - The Senate Homeland Security and Transportation Committee met this week to discuss the road funding bill, HB 1461. Testimony was taken on the bill and Chairman Mike Crider (R-Greenfield) announced that there will be some amendments he will file on Friday to the underlying bill (not posted yet at the time of this writing). While testimony from local officials was mixed, many were united against a required wheel tax, as they said it would not fully account for the spectrum of financial situations across Indiana municipalities. Many others requested the bill be updated to allow “more flexibility” for local governments.

  • The bill has been rescheduled for amendment and vote only on Tuesday, March 25th.

 

Immigration

HB 1393 - Titled “Immigration Notice,” this bill would require that individuals charged with a misdemeanor or felony in Indiana be screened during intake for their citizenship status, and if probable cause exists to believe they are in the country illegally, law enforcement must notify U.S. Immigration and Customs Enforcement (ICE).

  • An amendment was taken in committee to remove the original requirement that only arresting officers make this notification and broadened the application beyond arrests, allowing intake officers more discretion.
  • Supporters, including Rep. Bascom and Sen. Freeman argued the bill standardizes existing practices across counties and enhances public safety, referencing prior failures to report individuals with criminal records to ICE.
  • Opponents, including civil rights groups, religious organizations, and public defenders, raise concerns about racial profiling, due process violations, and the erosion of trust between immigrant communities and law enforcement. Critics also point out that the bill duplicates existing protocols, burdens local jails, and risks detaining legal residents due to misidentification or lack of documentation.
  • Despite significant opposition and debate, the bill passed out of the Senate Corrections and Criminal Law committee with a vote of 5–3.
  • On Thursday, the bill was on 2nd reading on the Senate floor and it was again amended by Sen. Freeman by removing the ability for a law enforcement agency, including a county sheriff, or a law enforcement office or any employee of the agency to be immune from civil liability, if there was reasonable belief that the notification requirements were not fulfilled. This bill is now on 3rd Reading in the Senate.
    • Click here to read a great article about the bill.

 

Housing

HB 1005 - This bill is authored by Rep. Doug Miller and was heard in the Senate Local Government Committee this week and is a continuation of housing-focused legislation from 2023. It includes two major components: enhancements to the Residential Housing Infrastructure Assistance Program, and a new option for private plan review and inspection for Class 2 structures, which include single-family homes, duplexes, and townhomes.

  • The residential infrastructure fund, originally passed as part of the 2023 version of HB 1005, provides state-supported loans to local governments for housing-related infrastructure. So far, it has helped fund or support thousands of new housing units. The 2025 bill gives priority to communities that adopt zoning or regulatory reforms to encourage denser housing, aligning with federal YIMBY (Yes In My Backyard) policy models. While praised for its success, several lawmakers and stakeholders raised concerns about the lack of specific affordability requirements in the program.
  • A key new provision in the bill allows developers to use certified third-party inspectors for plan reviews and inspections, with a required turnaround of 10 days. Rep. Miller emphasized this would ease burdens on understaffed local building departments and speed up the construction process without sacrificing code compliance. The bill preserves local control, requiring builders to still file applications with the local jurisdiction, but gives them the option to use a private provider if timelines aren’t met.
  • Some lawmakers, including Sen. Taylor, raised concerns about potential unintended consequences—such as developers bypassing public inspections, reduced local revenue, or delays tied to other permit types not covered under the bill (like stormwater or drainage). Stakeholders from Indianapolis and Accelerate Indiana Municipalities noted implementation challenges and asked for clearer guidance, particularly around workflow, application checklists, and insurance requirements for third-party reviewers.
  • Supporters of the bill, including realtors, architects, and municipal advocates, praised its efforts to improve housing supply and streamline development processes. However, several speakers and lawmakers emphasized the need to include more direct affordability measures, arguing that boosting housing supply alone may not reduce prices in all markets.
  • The bill was not voted on during the hearing and was held for further discussion. Rep. Miller indicated he is working on amendment language to address stakeholder concerns and strengthen the legislation.

 

Workforce Development

SB 516 - This legislation, authored by Sen. Buchanan, aims to strengthen Indiana’s economic development strategy with a focus on entrepreneurship and transparency. The bill creates a new Office of Entrepreneurship and Innovation under the Indiana Economic Development Corporation (IEDC) to support early-stage and small businesses, including both tech startups and traditional "main street" operations. The office would serve as a centralized resource hub for entrepreneurs, providing information and guidance to foster business growth across the state.

  • The bill also includes provisions requiring greater transparency and notification requirements when the IEDC seeks to purchase large tracts of land—specifically, more than 100 acres. Local elected officials and taxing units must be notified of such activity. Additional reporting requirements are established for Innovation Development Districts (IDDs), enhancing accountability in economic development zones.
  • A new statutory position, the President of the IEDC, would also be formally established. This role currently exists but will be codified in law. While some lawmakers expressed concern over potential salary ranges and fiscal transparency, IEDC officials and supporters emphasized that the office is not requesting new appropriations and that much of the organizational shift is structural rather than financial.
  • Testimony in support came from the multiple chambers of commerce and economic development organizations (offered by Torchbearer Public Affairs), and the National Federation of Independent Businesses (NFIB), who praised the bill’s attention to Indiana’s entrepreneurial ecosystem. They highlighted the state’s need to improve support for businesses in their early years and welcomed the bill's emphasis on data-driven decision-making and long-term planning.
  • Questions from lawmakers centered around funding, potential tax impacts on local units, and the practical responsibilities of new positions. Some concerns were raised about transparency, regulatory burdens on small businesses, and ensuring that the new office delivers tangible benefits to local economies.
  • The bill received broad conceptual support but was held for further discussion, with several legislators expressing interest in refining the fiscal details and implementation framework before moving forward.

 

Medicaid Matters

SB 2 - House Public Health took several hours of testimony on SB 2 (Medicaid Matters) this week before passing the amended bill out of committee 8-4.

  • The amendment added at the beginning of the discussion removed the enrollment limitation of 500,000 individuals from the bill, which was an important step in addressing a large public concern.
  • Two additional amendments were acknowledged as good proposals that would be addressed later in the House process. Those amendments included clarifying the prohibition on advertising to more explicitly allow public service and local market outreach and also carving out full-time students so that would meet the eligibility requirement for the adult group under the plan.
  • Testimony highlighted concerns about quarterly eligibility reviews that might be burdensome to vulnerable members and the three-strikes penalty system proposed for hospitals that improperly apply presumptive eligibility to patients.
  • This bill will next be heard in House Ways & Means to consider its financial implications.
  • Here is the Indiana Capital Chronicle’s coverage: ‘Not a deadbeat’: House amends out cap on Medicaid plan, keeps work requirements.

 

Nonprofit Hospitals

HB 1004 - The bill passed out of the Senate Public Health Committee on Wednesday in a vote of 8-4, though many of those who voted yes said they did so only to keep it moving through the process and said that if major changes did not take place, they would oppose the measure on the Senate floor. If all those who voiced their concerns with the current version of the bill had voted no, the bill would have died in committee.

  • Senators were concerned about the establishment of price caps and the possibility of hurting access to care, particularly in rural areas. They seemed unconvinced that the bill would be successful in cutting costs and improving access across the state.
  • It will now go to Senate Appropriations for consideration of his financial impact.
  • Also notable was Senate sponsor Chris Garten’s closing statement, in which he chastised the Indiana Hospitals Association (IHA) for not making an effort to meet or work with him on the bill.
  • Here is the Indiana Capital Chronicle’s coverage of the hearing: Senators begrudgingly move hospital ‘price caps’ bill.

 

State Fiscal Oversight Enhancements

SB 5 - Senate Republican priority bill SB 5 (State Fiscal and Contracting Matters) was heard in House Ways and Means this week. The Chairman of the Committee explained at the offset that this was for testimony and discussion only, with a significant amendment coming in a following hearing. The House Sponsor Rep. Matt Lehman (R-Berne) did share that he plans to work with the committee and others on a large amendment for this bill. This amendment is not yet complete, not public, and not ready for a vote. The bill will be heard again after amendments are created and ready for review by the committee. We expect that in the next week or two.

  • The amendment will most likely change the bill to ensure:
    • Educational Institutions (both K-12 and Higher Ed) will be REMOVED from the scope of the bill
    • AI use for state agencies
    • The section of the current bill around federal funds will be paired down and will now just be that the request must be shared with the State Budget Agency
    • The section that looks at government employment will be paired down to state that the Budget Director will now have the ability to reclassify positions that are not filled within 90 days
    • The section on contractor accountability will be removed completely
    • The increase of the use of the Comptroller’s Transparency Portal will remain in the bill as is
    • Section 7 of the bill starts on page 7 line 35 will remain as it is new laws around definitions and contracted accountability
    • Chapter 3 in the bill is the Disqualification of Contractors and will be REMOVED
    • Chapter 4 in the bill will stay - the alignment of federal and state code
    • The language in the bill to ensure a change review requirements will remain
    • The bill in Chapter 7 and 8 will remove education institutions.

 

Data Centers

SB 431 - Proposes restrictions on the construction of data centers in Indiana by foreign entities, aiming to regulate their electricity consumption and impact on the state's power grid. The bill requires that any foreign company planning to build a data center must undergo a review process conducted jointly by the Indiana Utility Regulatory Commission (IURC) and the Indiana Economic Development Corporation (IEDC). This review will assess the proposed data center’s anticipated electricity usage and determine whether its energy consumption will be self-sustaining rather than drawing from the regional power grid.

  • Under the bill, a foreign business is defined based on ownership, national origin, or government control, with a particular focus on entities from nations considered to pose security risks. The Governor and the General Assembly must receive certification from the IURC and IEDC before any foreign-owned data center project can proceed, ensuring that it does not negatively affect Indiana’s energy infrastructure.
  • The bill is intended to safeguard Indiana’s electrical supply by preventing large-scale power consumption by foreign-owned data centers from straining the regional transmission organizations (RTOs) that serve the state. Additionally, it aligns with broader national concerns over foreign influence and control in key industries, particularly in sectors involving digital infrastructure, cybersecurity, and energy resources.
  • This week, the bill was heard in the House Utilities, Energy and Telecommunications committee. The bill was amended to require foreign ownership to be “at least 50%” rather than 51%, addressing concerns about potential loopholes, and it aims to prevent power surges that could destabilize the grid, as seen in past incidents like the Texas power surge. The bill passed unanimously (12-0) and heads to the House floor.

 

Upcoming Committee Hearings to Highlight:

  • Tuesday, March 25th
    • Senate Homeland Security and Transportation Committee will meet at 9:00AM to hear HB 1461 Road Funding (Pressel, J).

 

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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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