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Bill to Limit Overreach by MS4 Operators Dies
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House Bill 1096, a bill that would prohibit a local jurisdiction/municipality/MS4 operator from adopting or enforcing any local regulations dealing with storm water discharges that exceed the state requirements under Rule 5 (327 IAC 15-5), died in the Senate Committee on Environmental Affairs Monday.
Vote Count:
Yes: Sen. Eckerty (R-Yorktown), Sen. Becker (R-Evansville), Sen. Brown (R-Fort Wayne), Sen. Ruckelshaus (R-Indianapolis), Sen. Spartz (R-Noblesville).
No: Sen. Bassler (R-Washington), Sen. Niemeyer (R-Lowell), Sen. Sandlin (R-Indianapolis), Sen. Stoops (D-Bloomington), Sen. Niezgodski (D-South Bend), Sen. Tallian (D-Portage).
Those in opposition argued the bill undermines local control and increased the risk for potential sediment pollution, contaminating lakes and rivers.
Areas outside of MS4s are regulated by IDEM under Rule 5 (327 IAC 15-5). Rule 5 is the basis for most communities across the state; however, builders, developers and land owners across the state continue to deal with MS4s who are taking the existing Rule 5 regulations and making their MS4 regulations more restrictive than the state regulations. Rule 5 should be the maximum rule across the state and MS4 jurisdictions should not be permitted to add additional costly requirements to their local regulations, which in effect raise the cost of housing and economic development projects across the state.
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Worker Misclassification and Unemployment Insurance Bills Held in Committee
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Two bills pertaining labor issues were heard in the House Committee on Employment, Labor and Pensions this week and held. Senate Bill 166, authored by Sen. Niezgodski (D-South Bend) and sponsored by Rep. Morris (R-Fort Wayne), pertains to worker misclassification and includes reporting requirements for the state department of revenue (DOR), the state department of labor (DOL), the worker's compensation board of Indiana (WCB), and the department of workforce development (DWD) beginning November 1, 2018. Senate Bill 425, authored by Sen. Doriot (R-Syracuse) and sponsored by Rep. Miller (R-Elkhart), excludes from the definition of "employment", for purposes of the unemployment compensation system, service performed by a driver who provides drive away operations under certain conditions.
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Engineered Lumber Bill Moves to House Floor
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Senate Bill 393, authored by Sen. Eckerty (R-Yorktown) and sponsored by Rep. Pressel (R-Rolling Prairie), requires an individual applying for a building permit for a Class 1 or Class 2 structure to disclose the use of advanced structural components on the building permit application. IBA shifted from opposition to a neutral position on the bill following an amendment to remove a notification requirement that could have delayed the issuance of the certificate of occupancy.
SB 393 passed the House Committee on Veterans Affairs and Public Safety 12-0 and is on 2nd reading in the House on Monday.
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Amended Occupational Licensing Bill Clears Committee; Moves to Senate Floor
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House Bill 1245, authored by Rep. DeVon (R-Granger) and sponsored by Sen. Boots (R-Crawfordsville), pertaining to occupational licensing requirements for those with criminal convictions was heard in the Senate Committee on Pensions and Labor this week. The bill was amended to remove Section 2 which included language on the effect of Criminal Convictions on licensed persons and passed 9-0. The bill moves to the Senate floor.
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Asbestos Bill Heard & Held
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House Bill 1061, authored by Rep. Lehman (R-Berne) and sponsored by Sen. Bray (R-Martinsville), pertains to asbestos litigation and requires asbestos claimants in civil cases to tell other parties and the court that they can, have, or are trying to recover for the same claim from the national bankruptcy trusts to provide transparency and prevent double-dipping.
IBA is part of a coalition of businesses and industries supporting HB 1061. The bill was heard in the Senate Committee on Civil Law this week and held.
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Statutory Indemnity for Design Professionals Scheduled for Senate Committee Hearing Monday
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House Bill 1015, authored by Rep. Torr (R-Carmel) and sponsored by Sen. Bray (R-Martinsville), would give preferential treatment to architects and engineers under Indiana's anti-indemnity statute at the expense of all other industry participants, including owners, contractors, and subcontractors. Section 2 of the bill will circumvent the ability to freely negotiate the allocation of risk. Parties should be free to contract as they determine to be appropriate for a particular project or scope of services. Architectural and engineering firms are under no obligation to contract for projects for which they determine the risk is too great and should not have statutory protection from risk for projects in which they chose to provide services.
Several business organizations, including IBA, oppose HB 1015 and have conveyed concerns to members of the Senate Committee on Civil Law. The bill is scheduled to be heard on Monday.
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Senate Committee Approves Amended Short-term Rental Bill
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House Bill 1035, authored by Rep. Matt Lehman (R-Berne) and sponsored by Sen. Messmer (R-Jasper), regulates short-term house rentals. The bill was amended in the Senate Committee on Local Government to require an owner to obtain a permit for each property and not each unit. The bill passed 7-1 and moves to the Senate. |
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Bills of Interest Scheduled for Committee Hearings Next Week
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Bills that IBA has targeted to track this year - aka Builders Bill Track - are attached. View all bills filed here. Please feel free to contact IBA's Governmental Affairs Team if you have any questions, comments or concerns about any legislation.
Upcoming Deadlines:
• Mar. 5 Deadline for Senate bills to clear House
• Mar. 6 Deadline for House bills to clear Senate
• Mar. 14 Session adjourns
Here's a list of bills of interest scheduled for committee hearings next week:
Monday, February 26, 2018 |
HOUSE JUDICIARY |
SB197** |
VARIOUS PROPERTY ISSUES. (DORIOT B) |
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HOUSE WAYS AND MEANS |
SB50** |
WORKFORCE DEVELOPMENT; CAREER AND TECHNICAL EDUCATION. (LONG D) |
SB242** |
TAX ISSUES. (HOLDMAN T) |
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SENATE CIVIL LAW |
HB1015** |
UNLAWFUL INDEMNITY AGREEMENTS. (TORR J) |
HB1277** |
APPRAISAL CONTRACTS. (BARTELS S) |
HB1320** |
DISPOSITION OF TAX SALE SURPLUS. (SLAGER H) |
HOUSE NATURAL RESOURCES |
SB380** |
IMPROVEMENTS IN HISTORIC DISTRICTS. (MESSMER M) |
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HOUSE UTILITIES, ENERGY AND TELECOMMUNICATIONS |
SB125** |
REGISTRATION OF UNDERGROUND UTILITY EXCAVATION CONTRACTORS. (MERRITT J) |
SB156** |
RURAL UTILITY COOPERATIVES. (HOUCHIN E) |
SB362** |
REGULATION OF WATER AND WASTEWATER SYSTEMS. (CHARBONNEAU E) |
SB411** |
DISTRESSED UTILITIES. (KOCH E) |
Tuesday, February 27, 2018 |
SENATE HOMELAND SECURITY AND TRANSPORTATION |
HB1311** |
MOTOR VEHICLE MATTERS. (SOLIDAY E) |
HB1358** |
INTERSECTION SAFETY STUDY. (CHERRY R |
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HOUSE WAYS AND MEANS |
SB43** |
RACIAL BALANCE LEVY AND FUND. (LONG D) |
Wednesday, February 28, 2018 |
SENATE LOCAL GOVERNMENT |
HB1155** |
REPAIR OF SUBDIVISION DRAINS. (BURTON W) |
HB1256** |
VARIOUS LOCAL GOVERNMENT MATTERS. (LYNESS R) |
HB1278** |
ECONOMIC IMPROVEMENT DISTRICTS. (EBERHART S) |
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IOSHA Visits Jobsites in Southwest Indiana; Be Prepared; Be Safe
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We've heard from members in southwest Indiana that the Indiana OSHA is visiting jobsites in their area. A common, and expensive, citation is for lack of fall protection. Here's a recent article on fall protection that tells you how to use it, when it's appropriate and where to purchase it.
While understanding the regulations and complying with them can seem overwhelming, it is absolutely necessary to keep workers safe and to avoid penalties. There are numerous resources to help employers operate safe job sites, improve compliance and reduce occupational injuries and illnesses, including:
INSafe - Helps employers comply with IOSHA standards and identify and correct potential safety and health hazards. Indiana Builders Association has a long-standing Alliance Agreement with the Indiana Department of Labor, so IBA members receive priority in scheduling a free INSafe consultation at https://www.in.gov/dol/2896.htm.
Intro to OSHA for Small Builders - This webinar gives the small builder an introduction to the Occupational Safety and Health Administration (OSHA) and an overview of how to move your company toward compliance.
New Employee Safety Orientation - This webinar provides construction jobsite orientation training to new employees on safety basics and will reduce accidents and save your company money. You can also check out this New Employee Construction Safety Toolkit.
OSHA Inspection Toolkit - This Web page provides builders and trade contractors important information on dealing with OSHA's stepped-up enforcement and increased penalties including the top 10 most frequently cited standards.
Safety Program Toolkit - This web page provides resources to assist your company in creating a safety program that includes procedures for the identification, evaluation and prevention or control of workplace hazards, specific job hazards and potential hazards that may arise.
Safety Training Toolkit - Many OSHA standards require workers to be trained to recognize and avoid unsafe conditions on the job. The materials contained on this web page will help builders and trade contractors train their workers and comply with OSHA regulations on fall protection, fire protection and prevention, recordkeeping, trenching and excavation, confined spaces, electrical safety, hazard communication, and silica.
OSHA Inspection Process Fact Sheet - This fact sheet from NAHB will help home builders fully prepare their worksites for an OSHA inspection and ensure their employees are trained in how to interact with a compliance officer in the course of an inspection. You can also check out this presentation on How to Prepare for an OSHA Inspection.
Video Toolbox Talks - Each safety Video Toolbox Talk explains and demonstrates how to recognize, avoid, abate, and prevent construction specific safety hazards through the use of techniques including best industry practices and OSHA regulatory requirements. |
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Good News for Remodelers: HELOCS Deductible for Capital Improvements
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The IRS issued a letter clarifying changes to home equity loans and lines of credit to confirm that households may take a tax deduction when these loans are used for home improvements. The tax law enacted in December cut the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer's home that secures the loan, the letter said. |
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Energy and Home Owner Tax Credits Included in Budget Accord
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As part of the Bipartisan Budget Act of 2018, which was signed into law on February 9, Congress retroactively extended a number of expired energy and home owner tax provisions. The following tax credits were reinstated on a retroactive basis for 2017 only:
- Section 45L Credit for Energy-efficient New Homes: Provides a $2,000 tax credit for the construction of homes exceeding heating and cooling energy standards by 50%. The base energy code is the 2006 International Energy Conservation Code plus supplements. Builders must have tax basis in the home to claim the credit (i.e., they must own and then sell/lease the residence).
- Section 179D Energy Efficient Commercial Buildings Deduction. Provides a deduction up to $1.80 per square foot for commercial and multifamily buildings that exceed specific energy efficiency requirements under ASHRAE 2007.
- Section 25C Tax Credit for Qualified Energy Efficiency Improvements. This policy offers a credit worth up to $500 (subject to a $500 lifetime cap), with lower caps for certain products like windows, for consumers to install qualified energy-efficient upgrades.
- Mortgage insurance premiums. Subject to income phase outs, consumers who file their taxes can deduct premiums paid for private mortgage insurance in 2017.
- Mortgage forgiveness tax relief. The budget accord eliminates any taxes home owners might face due to renegotiating the terms of a home loan, which result in forgiving or canceling a portion of the outstanding mortgage, particularly in connection with short sales. The debt forgiveness pertains to debt discharged in 2017 but not in 2018.
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Section 25D Tax Credit for Power Production Property
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Congress also included a fix NAHB had sought for the Section 25D tax credit, which offers a 30% tax credit for the installation of qualifying alternative energy equipment. In 2016, Congress extended the 25D tax credit but limited its use to solar technology only.
This bill restores the ability to claim the 25D tax credit for geothermal heat pumps, small wind turbines, and fuel cell property. Unlike the credits listed above, the Section 25D tax credit remains in effect for 2018 under a phase-out regime. The applicable credit rates under the phase-out regime are:
- 30% in the case of property placed in service before Jan. 1, 2020
- 26% in the case of property placed in service after Dec. 31 2019 and before Jan. 1, 2021
- 22% in the case of property placed in service after Dec. 31 2020 and before Jan. 1, 2022
Starting in 2022, this credit is scheduled to expire.
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NAHB to Offer Special Tax Reform Webinar March 5
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As you know, the landmark tax reform legislation that took effect Jan. 1 created significant changes in the tax code that will affect the housing industry and our small business members. To help you understand how these changes could impact your business, NAHB is providing a members-only webinar, Tax Reform and Your Bottom Line, at 1 p.m. ET on March 5. The webinar will feature NAHB tax experts and outside tax counsel who will focus on the specific changes that will most directly impact small businesses, including the 20% pass-through deduction, limitations on the business interest deduction and new depreciation guidelines. Members will have the opportunity to ask questions during the webinar. If you are not able to join the webinar, a replay will be posted on nahb.org. Register for the March 5 webinar at nahb.org/taxwebinar. (log-in required) NAHB remained actively engaged throughout the tax reform debate and fought hard to ensure that our industry's priorities were addressed. As the implementation of the law begins, we will continue to work on behalf of our members and update you as more information becomes available.
You can learn more about the new tax law, and NAHB's influence during the legislative process, at nahb.org/taxreform.
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