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LEGISLATIVE
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Fire sprinkler language would be included in definition of class 2 structure
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House Bill 1147 (HB 1147), authored by Rep. Dave Frizzell (R-Indianapolis), and Senate Bill 553 (SB 553), authored by Sen. Mike Delph (R-Carmel), would add fire sprinkler language to the definition of Class 2 townhouses. As you may recall, in 2014 House Enrolled Act 1301 (HEA 1301) cleared up an ambiguity in code that classified townhouses as Class 1 commercial structures, but made them subject to the residential code rules. HEA 1301 simply added the definition of a Townhouse to the Class 2 definition in state statute. The fire sprinkler industry and the Indiana Fire Chiefs Association heavily opposed that proposed change in 2014, and the fire sprinkler industry is now bringing the fight back in 2015.
HB 1147 and SB 553 both provide that for purposes of the building code, a Class 2 structure townhouse may be separated from an adjoining unit by a one hour fire-resistance rated wall combined with a National Fire Protection Association 13D compliant fire sprinkler system. If passed, this proposal would insert fire sprinkler language into the definition of Class 2 structures which could pave the way for additional fire sprinkler requirements impacting 1- and 2-family dwellings in the years to come.
To read the full version of HB 1147, please click here.
To read the full version of SB 553, please click here.
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Now two nursing home moratorium bills filed
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In addition to Senate Bill 460 (SB 460), authored by Sen. Pat Miller (R-Indianapolis), that was filed last week, Rep. Tim Brown (R-Crawfordsville) also filed a proposal - House Bill 1511 (HB 1511) - that would prohibit the construction of nursing facilities for the next three years. This would include many nursing facilities that would be completely private and receive no Medicaid or other government funding. This is a significant concern for a number of reasons. This could reduce the number of construction jobs in Indiana, would hurt suppliers to the industry due to lost sales, and would set a concerning precedent that other industries could use in the future to eliminate the threat of free market competition.
More specifically, SB 460 and HB 1511 both would prohibit the state department of health from approving: (1) the licensure of comprehensive care health facilities; (2) new or converted comprehensive care beds; or (3) the certification of new or converted comprehensive care beds for participation in the state Medicaid program; through June 30, 2018. However, they makes exceptions for certain facilities that are: (1) under development; (2) small house health facilities; (3) replacement facilities; (4) continuing care retirement communities; and (5) facilities located in counties whose comprehensive care bed occupancy rate exceeds 90%. They limit small house facilities to 100 new licensed or Medicaid certified comprehensive care beds per year.
To read the full version of SB 460, please click here.
To read the full version of HB 1511, please click here. |
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Local performance bond requirements addressed in HB 1508
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House Bill 1508 (HB 1508), authored by Rep. Heath VanNatter (R-Kokomo), would create a framework within which local units of government could require land developers to obtain performance bonds. Currently, municipalities have little guidance in state statute concerning local performance bond ordinances that apply to land developers. This has resulted in a patchwork of rules across the state that, in some cases, have become increasingly cumbersome and costly. The purpose of HB 1508 is to establish a more consistent set of rules throughout the state.
HB 1508 prohibits a unit of local government from adopting or enforcing an ordinance, rule, or other policy requiring a land developer of Class 1 or Class 2 structures to: (1) obtain a performance bond or other surety before the land developer receives secondary approval of a subdivision plat, with certain exceptions; (2) pay an availability fee before the recording of a secondary platting plan; or (3) obtain a maintenance bond that exceeds certain limits on the amount of the bond and on the effective period of the bond. It authorizes a unit of local government, upon the filing of a subdivision plat for secondary approval, to require the land developer to obtain a performance bond or other surety for incomplete or unfinished streets, sanitary piping, storm water piping systems, water mains, and erosion control that are in the approved development or required to service the approved development.
It also provides, however, that: (1) the ordinance, rule, or policy requiring a land developer to obtain a performance bond must provide for the timely release of the bond upon completion or substantial completion of the subject matter upon which the bond was obtained; and (2) the performance bond may not be based on a value that exceeds a certain limit and may not include land that is not then under development.
Finally, HB 1508 allows a land developer to delegate the duty to obtain a performance or maintenance bond for a specific parcel or lot to a subsequent possessor in interest who will make additional improvements to the parcel or lot before the parcel or lot is transferred to the final owner.
Please feel free to contact IBA's Governmental Affairs Director, Tom Havens, if you have any questions or comments concerning HB 1508. Tom can be reached by email at: Tom@buildindiana.org; and by phone at: (800) 377-6334 ext. 205.
To read the complete bill, please click here. |
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Bill would repeal certain property taxes in exchange for tax on services
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A proposal authored by Sen. Mike Young (R-Indianapolis) - Senate Bill 560 (SB 560) - would eliminate property taxes on primary residences (homesteads) and business personal property, and apply the sales and use tax to transactions involving services, except for legal services, health or mental health services (including insurance premiums for policies covering these services), and services provided for charitable tax exempt purposes. It also would decrease the state sales and use tax rate from 7% to 5.5%. SB 560 would provide an annual state distribution to offset the property tax elimination for homesteads and business personal property based on the amount of property taxes that otherwise would be due on these homesteads and business personal property. It prohibits changes in homestead and business personal property tax deductions, credits, and abatements that were in effect December 31, 2014, and increases the maximum renter's deduction for income tax purposes from $3,000 to $8,000 per taxable year.
To read the complete bill, please click here. |
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Energy efficiency bill clears committee
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Senate Bill 412, authored by Sen. Jim Merritt (R-Indianapolis), would require a public utility to submit an integrated resource plan to the utility regulatory commission (IURC). Certain electric utilities would also be required to submit an energy efficiency plan to the IURC at least one time every three years. The bill passed the Senate Committee on Utilities by a 7-3 vote.
Click here for a recent Inside Indiana Business article on SB 412. |
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Builders bill track
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Please open the attachment to this newsletter if you are interested in viewing a comprehensive list of all bills IBA is tracking this session.
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NEWS
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Statewide survey shows Hoosier homeowners opposed to home sprinkler systems
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The Indiana Builders Association recently conducted a survey of 500 likely voters across the state of Indiana to determine the opinions of Hoosiers regarding residential fire protection systems. The IBA commissioned Public Opinion Strategies of Washington D.C. to conduct the survey and results show that nine in ten Hoosier homeowners agree to the question, "Do you believe that smoke detectors do an adequate job of protecting your family in a house fire?" Four in five voters still oppose required fire sprinklers and half of all voters would not install sprinklers in their home, regardless of price. IBA will be releasing the full results of the survey next week. |
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Join us for 'Builders Day' at the Capitol - February 17
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The Indiana General Assembly is considering legislative proposals that will affect the home building industry. Indiana Builders Association is providing you with a unique opportunity to meet with legislators at the Indiana Statehouse to discuss issues that impact your business including:
- An expansion of the sales tax to services;
- Licensing and registration of home improvement contractors and suppliers;
- Indiana's two-year budget; and
- Repealing the common construction wage.
Registration is $25 per person and covers the cost of lunch. Click here to register for the legislative lunch or for more information on events scheduled during the 2-day Housing & Legislative Conference. |
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Motsenbocker wins national award
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IBA Past State President, Jud Motsenbocker, CAPS, CGB, CGR, received the Builder/Remodeler Educator of the Year award at the International Builders' Show this week. Motsenbocker was recognized by his peers at the 2015 NAHB Designation Achievement Reception in Las Vegas. IBA leadership was present at the reception to help celebrate and recognize this great achievement. |
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State and national home builders associations elect leadership
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Members of the Indiana Builders Association (IBA) and the National Association of Home Builders (NAHB) recently elected their 2015 Senior Officers. IBA's leadership team includes: President Linda Rogers from Granger; Vice President Jim Pressel, CGB, from La Porte; Lance Swank from Mishawaka, and Secretary Pat Richard from Lafayette.
NAHB's leadership team includes: Chairman of the Board Tom Woods from Missouri; First Vice Chairman of the Board Ed Brady from Illinois; Second Vice Chairman of the Board Granger MacDonald from Texas; and Third Vice Chairman of the Board Randy Noel from Louisiana. |
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Tax filing season is underway; be prepared to report health coverage on your tax return
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The Affordable Care Act (ACA) required every adult and child to have health insurance as of Jan. 1, 2014. This is known as the individual mandate. Penalties for not having coverage were delayed until March 31, 2014. It is important that everyone obtained coverage by this deadline to avoid penalties in 2014.
Businesses with fewer than 50 full-time equivalent employees are not required to provide or pay for health coverage for their workers. However, businesses with 50 to 99 full-time equivalent employees are mandated to provide affordable health coverage to their employees starting on Jan. 1, 2016. This is called the employer mandate. Companies with 100 workers or more must offer their employees health coverage starting on Jan. 1, 2015.
IBA member and insurance agent Greg Gerbers reminds members that starting in 2015, individuals will have to report on their federal tax return whether they had health insurance coverage for 2014 or were exempt from the individual mandate. Any penalties that an individual owes for not having health insurance coverage will generally be assessed and collected in the same manner as taxes.
Click here for additional information from the IRS regarding ACA tax provisions for individuals and their families.
Click here for information on IBA's fully insured health insurance program. |
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Mortgage rate drops
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The average rate for 30-year mortgages fell from 3.85 percent to 3.80 percent in the week ended January 15. The rate for 15-year mortgages fell from 3.16 percent to 3.11 percent.
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