February 10, 2017  
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 Inside the Legislative & Regulatory Report
  Tracking Legislation that Could Impact Housing  
  Please read through the Top Five bills you need to know about below. Attached is our full bill track. Please feel free to contact IBA's Governmental Affairs Team if you have any questions, comments or concerns about any legislation.
 

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  Top Five Bills You Need to Know About  
  Call to Action: Support Legislation to Prohibit Inclusionary Zoning
Senate Bill 558 prohibits local governments from imposing inclusionary zoning mandates on developers and instead encourages cooperation on the issue of affordable housing.
 
If a municipality adopted an inclusionary zoning ordinance it would require a private developer not receiving any government incentives to set aside a percentage of new units or homes for affordable housing. This in turn would likely mean that the other residents of an apartment community or homeowners in the neighborhood would pay more for their housing. These mandates actually increase the cost of affordable housing.
 
SB 558 ensures local units of government cannot mandate a specific number of affordable housing units be included on every new development, whether constructed as single-family or multifamily property, and cannot place a cap on the sale or rental price.
 
The bill is on 2nd reading in the Senate on Monday.
 
Please ask your State Senator to support Senate Bill 558 as well as Amendment 1, offered by Senator Young, and Amendment 3, offered by Senator Holdman.
 
Please ask your State Senator to oppose Amendment 2 to SB 558, which would remove the prohibition on inclusionary zoning from the bill.
 
Click here to send a message to your State Senator.
 
IBA Members Need to Urge Indiana Senate to Override Veto of HB 1082 from 2016 Session
The Indiana House of Representatives voted 65-29 earlier this week to override Former Governor Pence's veto of HB 1082 from the 2016 legislative session. The Indiana Senate will likely consider the override early next week.  As many of you may recall, this was the "no-more-stringent" compromise language that IBA and other groups supported last year. 
 
Please contact your Senator through IBA's VoterVOICE grassroots advocacy tool or call them directly and ask them to override the veto of HB 1082.
 
Background: HB 1082 requires a report of all pending rules and non-rule policy documents to be sent by IDEM to the legislative council by July 1 of every year. Under current law, IDEM must identify more-stringent-than federal requirements and separately publish in the Indiana Register: 1) all pending rules or elements of rules that would be more-stringent-than the federal rules; and 2) the reasoning behind the rule and why the federal standard is not sufficient. This information will now be sent to the legislative council as well. Importantly, rules with more-stringent elements would not be effective until after the conclusion of the next legislative session. This delay allows the Indiana General Assembly to take action to preempt the rule.
 
Urge the General Assembly to Support Open Competition and Fix Indiana's Water Systems
Developers across the state often face a lack of open competition for water and sewer piping when they try to build a subdivision because municipal procurement policies often prevent access to all available materials, driving up cost.
 
House Bill 1226, authored by Rep. VanNatter (R-Kokomo), pertains to piping materials for public works projects. The bill provides, for purposes of the law on public works projects of state agencies and political subdivisions, including design-build public works projects, that: (1) the specifications or design criteria package must specify that all piping materials that meet the recognized standards of the American Society for Testing and Materials or the American Water Works Association may be acquired for and used in the projects; and (2) in the acquisition of piping materials for a project, the characteristics of the piping materials as to quality, sustainability, durability, and corrosion resistance of the piping materials shall be considered, where applicable.
 
Position: IBA supports HB 1226 as it gives Indiana communities the opportunity to address their aging infrastructure in an open competitive process that allows potential cost-savings to taxpayers.
 
Status: The bill has been assigned to the House Committee on Government and Regulatory Reform, but has not received a hearing.  The Chairman of the Committee and Author of the bill convened a meeting earlier this week with all interested parties and proponents of the bill have offered compromise language to opponents of the bill, but no agreement has been reached to date.  IBA is encouraging members to visit http://modernwatersystems.org/indiana/ and to urge their State Representative to support HB 1226.
 
Engineered Lumber Bill Removed from House Calendar & Likely Dead
Thanks to IBA members prompt response telling their State Representatives to oppose House Bill 1124 concerning the use of engineered lumber, the bill will likely not advance this session.
 
Position: IBA opposed HB 1124 as building permit fees would have increased as a result of the requirements for municipalities to:  
  1. amend their building permit applications to include language on the types and the location of the engineered lumber used on the property,
  2. send written notification of a structure's use of engineered lumber to the local fire department and to the 911 telephone call center within 10 days of issuing a building permit and notification must be sent by certified mail, return receipt requested, and
  3. maintain the information and relay it to all responding public safety units whenever dispatching to a structure with engineered lumber.
Status: HB 1124 has been removed from the House calendar and is likely dead.
 
Bill To Expand Impact Fee Statute Held
Senate Bill 467 , authored by Sen. Buck (R-Kokomo), allows the imposition of an impact fee for capital improvements for public safety purposes. The bill was heard in the Senate Local Government Committee this week and was held. IBA staff was prepared to testify in opposition to SB 467 as it is an expansion of the impact fee statute. 
 

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  Bill to Expand Home Improvement Contracts Statute Scheduled for Hearing  
  Senate Bill 353, authored by Sen. Head (R-Logansport), amends the statute concerning home improvement contracts to cover improvements made to commercial real property in addition to residential real property and includes interior improvements made to a basement.  
 
Status: SB 353 is scheduled for hearing in the Senate Civil Law Committee on February 20. 
 

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  Extension of Nursing Home Construction Moratorium Moves to Ways and Means  
  House Bill 1493, authored by Rep. Brown (R-Crawfordsville), pertains to long-term care matters and would, among other things, extend the moratorium on construction of new nursing homes. The bill modifies the replacement facility exemption for purposes of the prohibition on the approval of licensure of comprehensive care health facilities and comprehensive care beds and extends the prohibition through June 30, 2023. 
 
Position: IBA has long opposed the nursing home moratorium.
 
Status: The bill passed the House Committee on Public Health and has been referred to the House Committee on Ways and Means.
 
Action: Please ask your State Representative to oppose HB 1493. 
 

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  Economic Development Bills Clear House  
  Two IBA-supported bills aimed at improving economic development cleared the House this week with 96-0 votes and move to the Senate.
 
HB 1117, authored by Rep. Miller (R-Elkhart), provides that a local governmental unit and a land developer may agree to the partial release of a performance bond or other surety required of the land developer to ensure the completion of certain unfinished improvements and installations in a subdivision on a more frequent basis than an annual basis. (Under current law, a performance bond or other surety may be partially released on an annual basis, which would continue to be permitted.)
 
HB 1286, authored by Rep. Stemler (D-Jeffersonville), provides that in the case of a regional development authority established after June 30, 2017, the ordinances establishing the regional development authority must include one of the following provisions concerning the regional development authority's exercise of the power of eminent domain: (1) That the regional development authority has the authority to exercise the power of eminent domain. (2) That the regional development authority does not have the authority to exercise the power of eminent domain. (3) That the regional development authority has the authority to exercise the power of eminent domain, but the exercise of that power is subject to the approval of the legislative body of the municipality in which the property is located or (if the property is not located within a municipality) the legislative body of the county in which the property is located. Provides that the ordinances may be amended to designate an alternative option concerning the exercise of eminent domain powers by the authority.
 

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  Bill Aimed at Reducing Duplicative Reporting Requirements for Small Businesses on 3rd Reading  
  House Bill 1157, authored by Rep. Miller (R-Elkhart), addresses small business duplicative reporting. The bill requires the Indiana economic development corporation to: (1) develop a means for small business reporting of duplicative state reporting requirements through the office of technology computer gateway; and (2) annually report the received information to the house of representatives' standing committee responsible for government reduction.
 
HB 1157 is on 3rd Reading in the House on Monday. IBA supports this bill. 
 

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  Land Bills Held in Committee  
  Senate Bill 381, authored by Sen. Buck (R-Kokomo), pertains to annexation and was scheduled to be heard in the Senate Civil Law Committee this week and was held for an amendment to address voluntary annexation.  SB 381 is scheduled to be heard again on Monday, February 20th.
 
House Bill 1390, authored by Rep. Ellington (R-Bloomington), provides that if certain requirements are met, a property owner is allowed to subdivide an original parcel by deed without subdivision approval or processing by the local government.  HB 1390 was scheduled to be heard this week in the House Local Government Committee, but was held.
 
House Bill 1132, authored by Rep. Ellington (R-Bloomington), changes the definition of "urban area" for purposes of a land use provision regarding the use and alienation of mineral resources or forests to include any lands or lots used for residential purposes where there are at least 50 residences (instead of eight residences) within any quarter mile square area. HB 1132 was heard this week in the House Local Government Committee, but was held.
 

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  Bill to Shorten Permit Application Approval for Commercial On-Site Sewage Systems Passes Committee  
  House Bill 1408, authored by Rep. Wesco (R-Osceola), requires the state department of health to grant or deny an application for a permit to construct a nonresidential on-site sewage system within 45 days after the permit application is submitted to the state department.
 
The bill passed the House Environmental Affairs Committee and is on 2nd Reading in the House on Monday.
 
IBA supports this bill as it would shorten the time to begin septic system installations for commercial projects. 
 

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  Bill Pertaining to HOAs Regulating Solar Panels Passes Committee  
  Senate Bill 500, authored by Sen. Freeman (R-Indianapolis), prohibits a homeowners association from adopting or enforcing certain rules, covenants, declarations of restrictions, and other governing documents, after June 30, 2017, concerning solar energy systems.
 
SB 500 passed the Senate Committee on Civil Law and is on 2nd Reading in the Senate on Monday.
 
A second bill pertaining to HOA's has passed the House. House Bill 1074, authored by Rep. Macer (D-Indianapolis), pertains to homeowners association proxies. The amended bill passed the House this week 96-0 and moves to the Senate. 
 

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  Recording Fees Bill Passes Committee  
  Senate Bill 505, authored by Sen. Bray (R-Martinsville), changes the amounts and distribution of recording fees. The bill also adds the Uniform Real Property Electronic Recording Act that provides, effective January 1, 2018, that for purposes of recording: (1) an electronic document satisfies any legal requirement for an original paper document or other medium; and (2) an electronic signature satisfies a legal requirement that a document must be signed, notarized, acknowledged, or verified.
 
The amended bill passed the Senate Committee on Local Government and is on 2nd Reading in the Senate on Monday.
 
IBA is closely monitoring SB 505. 
 

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  Bike Trails Bill Advances  
  House Bill 1174, authored by IBA member and State Representative Wes Culver (R-Goshen), establishes the Indiana bicycle trails task force (task force) to: (1) develop actionable concepts to connect existing bicycle trails throughout Indiana; (2) estimate the cost of each concept; (3) present at least six innovative ways to fund the connections to existing bicycle trails; and (4) prepare a timeline that shows the phases of completion to connect existing bicycle trails throughout Indiana for each funding method. 
 
HB 1174 passed the House Roads and Transportation Committee and is on 2nd Reading in the House on Monday. 
 

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  IBA Housing and Legislative Conference: February 27  
  The 2017 IBA Housing and Legislative Conference will be held on Monday, February 27 at the Hyatt Regency in downtown Indianapolis. Take part in the legislative briefing followed by lunch at the Statehouse. This is a great opportunity to meet with your state legislators and discuss housing issues. The afternoon will include leadership training, social media training and board orientation. Reserve your hotel room by February 6 by visiting aws.passkey.com/go/BIAS. For a detailed schedule, visit http://bit.ly/IBAHousingLeg. To RSVP, contact Kim at kimh@buildindiana.org or 800-377-6334 ext. 203.
 

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  Nationally Acclaimed Economist to Keynote IBA Board of Directors Meeting: February 28  
  Elliot Eisenberg, Ph.D. will be the keynote speaker at the IBA Board of Directors meeting on Tuesday, February 28 at 12 p.m. at the Hyatt Regency in downtown Indianapolis. Elliot is a nationally acclaimed economist and public speaker specializing in making economics fun, relevant and educational. To RSVP, contact Kim at kimh@buildindiana.org or 800-377-6334 ext. 203.
 

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  Tell Us Your State Government Woes  
  State Representative Doug Gutwein (R-Francesville), Chairman of the House Select Committee on Government Reduction, has asked IBA to reach out to our members for feedback on ways to reduce state government regulations. Please take a minute to tell us which state regulations you feel result in unnecessary delays, costing you time and money, or are overreaching.
 

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  IBA Supports Making the Regulatory Accountability Act a Priority for the U.S. Senate  
  Indiana Builders Association signed onto a multi-industry letter urging the U.S. Senate to consider and pass the Regulatory Accountability Act of 2017 (RAA). The letter received enthusiastic support from a broad coalition of 616 co-signers from all 50 states.  This wide-ranging support is critical in impressing upon the Senate that they have the unique opportunity to bring change to the outdated way agencies adopt the most costly rules.
 
For the full list of signatories, view the letter HERE
 

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  IHCDA Strategic Plan Regional Sessions Scheduled Around the State  
  Indiana Housing and Community Development Authority (IHCDA) is seeking your input as they develop their 2017-2020 Strategic Plan. IHCDA will be conducting listening sessions around the state to identify the best approaches for creating an Indiana with a sustainable quality of life for all Hoosiers in the community of their choice.
 
Here are dates, times and locations. Please register if you plan to attend.

NW Regional Session
February 14, 2017
9:00 am - 12:00 pm
Chatham Square Apartments
3619 Champlain Street
Lafayette, Ind. 47905
Click here to register.

SW Regional Session
February 15, 2017
9:00 am - 12:00 pm
Tri-Cap
607 Third Avenue
Jasper, Ind. 47547
Click here to register.

SE Regional Session
March 1, 2017
9:00 am - 12:00 pm
New Hope Services
725 Wall Street
Jeffersonville, Ind. 47130
Click here to register.

Central Regional Session
March 14, 2017
9:00 am - 12:00 pm
RealAmerica Headquarters
10711 America Way, Suite 200
Fishers, Ind. 46038
Click here to register.

NE Regional Session
March 15, 2017
9:00 am - 12:00 pm
Allen County Library
900 Library Plaza
Fort Wayne, Ind. 46802
Click here to register.

Note: All times are EST.
 

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  White House 'Unfreezes' Streamlined Wetlands Permits  
  Last week, NAHB urged the White House to exclude the recently reissued Clean Water Act nationwide wetland permits (NWPs) from a regulatory "freeze" - and the White House paid attention.
 
Imposed by the Trump Administration to allow for a review of rules that were issued during Obama's final days in office, the freeze threatened to delay the effective date of the NWPs and create a lapse in their availability. Without NWPs, builders and developers would be forced to obtain more costly and time-consuming "individual" wetland permits when their activities impact waters of the United States.
 
In response to NAHB's request, the White House Office of Management and Budget has exempted the NWPs from the regulatory freeze, avoiding a lapse in permit availability. The 2017 NWPs will go into effect March 19, as originally scheduled.
 
For additional information, contact Owen McDonough at 800-368 5242 x8662.
 

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