April 23, 2021
 
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  2021 Legislative Session Recap  
 

Indiana Builders Association advocated on behalf of our members on numerous bills impacting housing during the 16-week legislative session which ended April 22.

List of All Bills | Enrolled Acts Sent to Governor

While every session is different and has unique challenges, the COVID-19 safety protocols requiring distance, masks and plexiglass made in-person communication with legislators, staff, and other lobbyists and stakeholders very difficult at times. Member response to our Calls To Action was critical and resulted in victories on 3 out of 4 of our priority issues.  

 

Below is a summary of action on legislation of importance to the housing industry. 

 
  Legislation that Passed  
 

*Supported by IBA

State Wetlands *

Authors: Sen. Garten (R-Charlestown), Messmer (R-Jasper) & Rogers (R-Granger) + 19 Co-Authors

Sponsors: Rep. Lehman (R-Berne), Gutwein (R-Francesville), Thompson (R-Indianapolis), Morrison (R-Brazil)

Summary: SEA 389 State wetlands - protects high-quality isolated wetlands while reducing the regulatory costs and permitting requirements on low-quality Class I isolated wetlands in Indiana. Specifically, the legislation will:

  • Exempt permit requirements for the development of cropland that has been used for agricultural purposes within 5 or 10 years, depending on situation
  • Exempt permit and mitigation requirements for wetland activities in a Class I wetland that are not subject to regulation under Section 404 of the federal Clean Water Act (CWA)
  • Clarify the definition of a Class II wetland
  • Clarify that a permit is not required in a Class II wetland smaller than 3/8 acre in size
  • Make no change to existing law as it relates to Class III wetlands and mitigation requirements
  • Codify in Indiana Code that wetland activity in an ephemeral stream does not require a permit, unless one is required under the CWA
  • Exempt certain wetlands within municipal boundaries
  • Establish a 14-member wetlands task force that will study Indiana's wetlands and provide a report to the Indiana General Assembly by 11/1/22

Key Votes: House 3rd Reading VoteSenate Concurrence Vote

Position: Supported.  Ask Governor Holcomb to sign SEA 389 into law.

 

Natural Gas Ban Preemption *

Author: Rep. Pressel (R-Rolling Prairie) | Sponsors: Sen. Koch (R-Bedford) & Bohacek (R-Michigan City)

Summary: HEA 1191 Natural gas ban preemptionprohibits local governments from banning the purchase of, use of, or connection to a utility service based on the energy source of the utility service

Key Votes: House Conference Committee ReportSenate Conference Committee Report 

Position: Supported

 

Funding for BYF Indiana *

Author: Rep. Brown (R-Crawfordsville) | Sponsor: Sen. Mishler (R-Bremen)

Summary: HEA 1001 Funding for BYF Indiana - state's 2-year budget includes funding for the Build Your Future Indiana program, which encourages Hoosiers to learn about careers in construction; establishes a summer study committee on affordable, workforce, and "missing middle" housing in Indiana; requires the state Dept. of Education to report on the availability of federal funding to hire high school counselors with a focus on career counseling and technical or vocational training

Position: Supported

 

Performance Bonding of Developers *

Author: Rep. Pressel (R-Rolling Prairie) | Sponsor: Sen. Doriot (R-Syracuse)

Summary: HEA 1466 Performance bonding of developers - clarifies that local government cannot impose bonding requirements on developers beyond those expressly allowed by statute and must record secondary plats for subdivisions that comply with all other applicable statutes and ordinances 

Key Votes: House 3rd ReadingSenate 3rd Reading

Position: Supported

 

Water and Wastewater Service *

Author: Rep. Pressel (R-Rolling Prairie) | Sponsor: Sen. Ford (R-Terre Haute)

Summary: HEA 1287 Water and wastewater service - provides affordable water and wastewater service to underserved areas and clarifies that if your remodeling project does not add a bedroom or bedroom equivalent and the septic system gets the "ok" from a qualified inspector, the property owner isn't required to upgrade the septic system or connect to a sewer system

Position: Supported

 

Landlord-Tenant Relations *

Author: Rep. Manning (R-Logansport) | Sponsor: Sen. Doriot (R-Syracuse)

Summary: HEA 1541 Landlord-tenant relations (and veto override of SEA 148-2020) - provides uniform statewide regulations for landlord-tenant matters; allows for streamlined business practices and guarantees continued investment in the state; provides statewide protection for tenants by prohibiting landlords from retaliating against tenants who bring concerns about living conditions

Position: Supported

 

Withholding Tax Remittance *

Author: Sen. Rogers (R-Granger) | Sponsor: Rep. Miller (R-Elkhart)

Summary: SEA 234 Withholding tax remittance - adds requirements for payroll service providers to protect businesses should the PSPs fail to deposit a business client's employer withholding taxes when due

Position: Supported

 

Recording Requirements *

Author: Rep. Torr (R-Carmel) |Sponsor: Sen. Brown (R-Fort Wayne)

Summary:  HEA 1056 Recording requirements - fixes SEA 340-2020 that resulted in a disruption in the real estate market by unintentionally requiring a separate witness for instruments and conveyances to be recorded

Position: Supported

 

COVID-19 Civil Immunity *

Author: Sen. Messmer (R-Jasper) | Sponsor: Rep. Torr (R-Carmel)

Summary: SEA 1 Civil immunity related to COVID-19 - shields businesses from employee or customer lawsuits over coronavirus exposure, except for an act or omission that constitutes gross negligence or willful or wanton misconduct

Position: Supported

 

Low Income Housing * 

SEA 214 Low income housing reinstates provisions that were repealed in the 2016 session in Senate Bill 309 regarding eligibility for the property tax exemption for improvements on real property that are constructed, rehabilitated, or acquired for the purpose of providing low income housing

 

CTE *

HEA 1549 Education matters - allows a high school to replace certain high school courses on the high school transcript with alternative courses in science, technology, engineering, or mathematics (STEM) in order to satisfy an Indiana diploma with a Core 40 with an academic honors designation or another designation requirement

 

Marion County Zoning

SEA 392 Marion County zoning - provides that the legislative body and the board of zoning appeals (BZA) of Lawrence, Speedway, Southport, and Beech Grove in Marion County have exclusive territorial jurisdiction within the excluded city's boundaries, and makes other changes

 

Tax Sales

SEA 28 Tax salesprohibits a person who is delinquent in the payment of personal property taxes or is subject to an existing personal property tax judgment from bidding on or purchasing a tract at a tax sale

 

Property Tax Assessment Freeze After Appeal

HEA 1166 Property tax mattersprovides that if an assessment on a taxpayer's residential real property or commercial property, with an assessed value of $3 million or less, is increased for a tax year for any reason other than by application of the annual adjustment factor, and the taxpayer appeals the increased assessment to the county property tax assessment board of appeals or the Indiana board of tax review and prevails, or prevails at any subsequent appeal of the increased assessment, the assessing official shall not increase the assessed value on the residential real property or commercial property until the first year of the next four year cyclical assessment cycle for any reason other than by application of the annual adjustment factor; other conditions apply 

 

Small Business Grants

HEA 1004 Small business grant restart program - provides grants of $10,000 per month to small businesses, with a maximum award of $50,000   

 

School Based Enterprise Requires No Change in Use

HEA 1270 Department of Homeland Security - requires a school based enterprise to comply with all rules of the fire prevention and building safety commission applicable to the primary use of the building

 

Wastewater Task Force

SEA 348 Wastewater Task Force - tasked with developing a long-term plan for addressing wastewater needs in Indiana

 

Business Personal Property Tax Exemption

SEA 336 Business personal property tax exemption - doubles the acquisition cost threshold for the business personal property tax exemption from $40,000 to $80,000 

 

Small Cell Facilities

HEA 1164 Various utility matters - adds regulations for wireless service providers regarding the placement of a new utility pole or wireless support structure in connection with the construction, placement, or use of a small cell facility 

 

Local Health Departments

SEA 5 Local health departments; public health emergencies - limits the authority of county or city health departments by allowing local elected officials to overturn orders or enforcement actions issued during emergencies; if the governor declares an emergency as an executive order, local health departments can't adopt more stringent orders without first receiving approval from the local legislative body; establishes appeals process for orders

 

Legislative Oversight During Emergencies

HEA 1123 Legislative oversight of certain fiscal and emergency matters - allows the legislature to reconvene in their regular session without the Governor's approval to make spending decisions or act on any executive orders; vetoed by Governor Holcomb; Indiana General Assembly voted to override the veto; likely headed to court 

 
  Legislation That Died  
 

*Supported by IBA

HB 1114 Residential building design elements protects private property rights, consumer choice, and Hoosier jobs by prohibiting municipally-mandated architectural standards in new home construction, with exclusions for structures that are historical, covenant-restricted, city owned/operated, or part of a federal or state housing program

 

HB 1116 Piping materials for public works projectsallows Indiana communities the opportunity to address their aging infrastructure in an open, competitive process that can yield savings to taxpayers

 

HB 1535 Modification of utility facilities - requires utility pole relocation fees to be reasonable and take into account depreciation of the pole

 

HB 1234 Fair and open competition for public works projects - establishes the right to compete and would reduce the cost of public projects by increasing competition

 

HB 1328 Subdividing land - requires a unit to allow a property owner to subdivide the owner's property by deed, under certain circumstances; allows property owners to have greater flexibility with their investment and could attract new home development which provides more housing options in communities

 

HB 1560 Homeowners associations and solar power - prohibits homeowners associations from banning or restricting the installation of solar panels on homes, except under certain circumstances

 

HB 1527 Eminent domain - requires a municipality condemning property within the unincorporated area of the county to obtain the county legislative body's approval by demonstrating the necessity for the taking and that it is for a public purpose

 

HB 1038 and SB 419 Septic system inspection - require septic systems to be inspected when a home is sold; given the added cost and potential delays to home sales resulting from mandating a service that can already be performed at the request of the buyer or if a local ordinance is in effect requiring it

 

HB 1559 Data base of potentially contaminated propertiesRequires the department of environmental management (department) to establish and maintain an electronic data base of information on potentially contaminated properties; requires that the data base be available for free online; provides for the removal of information on a property from the data base when the condition causing the property to be included in the data base is resolved or if the information was included by error. 

 

HB 1322 Building and fire safety codes requires the fire prevention and building safety commission to adopt and maintain several new statewide codes published by the International Code Council, including: plumbing, building, mechanical, fuel gas, fire, energy, electrical, and fire alarm and signaling

 

HB 1291 Energy efficient building design -requires the commission to adopt the most recent edition or the 2013 edition of the American Society of Heating, Refrigerating, and Air-Conditioning Engineers Standard 90.1 for Class 1 structures

 

HB 1521 Ag easements - requires the state to create a program for agricultural conservation easements

 

HB 1345 and SB 334 Minimum wage - increases minimum wage from $7.25 an hour to $8.20 an hour after June 30, 2022, then incrementally every year thereafter

 

HB 1319 and SB 100 Prevailing wage - mandate prevailing wage for public projects that cost at least $150,000

 

SB 257 and HB 1132 Employee misclassification - establish reporting on employee misclassification

 

SB 220 Worker's compensation - increases benefits for injuries and disablements by: (1) 10% on and after July 1, 2021; (2) 6% on and after July 1, 2022; (3) 4% on and after July 1, 2023-2026. 

 

HB 1381 commercial wind and solar standards and siting - set statewide standards for how close wind and solar projects can be to other properties, overriding municipal ordinances that restrict or prohibit wind powers and garnering fierce opposition from groups representing cities, towns, and counties; amended version of bill removed many of the "shall" provisions to allow for greater control by local government and to provide financial incentives from developers for counties that choose to allow the projects 

 

SB 236 Land banks - requires a county executive to provide a land bank in the county with a list of tracts located in the territory of the land bank that: (1) are delinquent on property taxes; and (2) have been offered for public sale at least two times and remain unsold; on an annual basis, and requires the county executive to transfer its interest in a tract on the list to a land bank if requested by the land bank not later than 90 days after it receives the list 

 

 

 
 

Indiana Builders Association
Advocacy Team
Rick Wajda, Chief Executive Officer Carlie Hopper, Governmental Affairs Director
 
The Indiana Builders Association (IBA) is a statewide trade organization representing Indiana's home building, remodeling and light commercial construction industry. Established in 1952, IBA has 22 local affiliates across Indiana and is associated with the National Association of Home Builders in Washington, D.C. IBA educates and advocates for the construction industry to positively impact legislative, regulatory, and legal issues that affect housing affordability. View and register for upcoming association events here.


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