• Third reading deadlines pass; Conference committees underway
• Senate passes budget bill (HB 1001) with funding for 2 IBA-priority programs
• House concurs on building commission bill (HEA 1575)

Next week marks the 16th and final week of the legislative session, which must adjourn by Apr. 29. Third reading deadlines were this week, and bills that failed to pass the opposite chamber are dead, e.g., House bills must pass the Senate, and Senate bills must pass the House. Final negotiations on several bills will take place during conference committees, which began this week. Legislation that fails to receive approval in conference committee or fails to gain approval in the chamber of origin dies. Resources for tracking legislation are provided below. Please contact IBA’s advocacy team if you have questions or comments about any legislation.

Resources for Navigating the Legislative Session
Builders Bill Track (attached) – List of bills tracked by IBA's Advocacy Team

Find a Bill  | Bills Sent to the Governor for Signature into Law

Conference Committees | Archived video

Senate Conference Committee Schedule | House Conference Committee Schedule

Contact Your Legislators

The Senate approved their proposed $43.3 billion version of the state budget on a 40-10 vote. The bill heads to conference committee for key lawmakers to continue negotiations. According to revenue figures released by the Indiana State Budget Agency this week, state lawmakers have $1.5 billion more to work with than expected in the fiscal 2023-2025 budget, which is a great position to be in. 

Two of IBA’s priority programs are funded in the state budget, and IBA’s lobbying team will continue to advocate for this critical funding, which includes:

• $75M over the biennium for the residential housing infrastructure program that’s created in HB 1005 to provide a revolving loan fund for political subdivisions to reduce the cost for infrastructure projects related to the development of residential housing.
• $1M annual appropriation for the Build Your Future Indiana program, administered by the Indiana Construction Roundtable Foundation, to encourage and promote careers in construction.
• Additional $4.1M over the biennium to expand the BYF Indiana program to include a semi-truck and trailer that’s custom fabricated with virtual and augmented reality simulators in 12 high-wage, in-demand professions in manufacturing, construction, and transportation.

Position: Support. IBA will continue to advocate for this funding, which is critical to our mission of providing housing that’s safe and affordable for Hoosiers. 

HEA 1575 establishes a more balanced state building commission of professionals with knowledge and expertise to cover the design, construction and inspection of structures regulated by the statewide building codes. The bill also establishes a code adoption process with a limit of 3 codes per year and no sooner than 5 years from when the last code was adopted. HB 1575 delays enforcement of new statewide building codes until 6 months after they’re adopted (currently 30 days) and prohibits local ordinances more stringent than the statewide building codes.

Position: Support. This IBA-priority bill is needed to address the imbalance on the state’s building commission, which has given architects, engineers, and fire service the upper hand and has resulted in an unprecedented attempt to fast-track the adoption of 8 new building codes in 2024.

Status: House concurred 67-27 with amendments made in the Senate sending the bill to the governor. 

Author: Rep. Tim O’Brien (R-Evansville) | Sponsor: Sen. Linda Rogers (R-Granger)

HB 1005 establishes the residential housing infrastructure assistance program and revolving fund for political subdivisions to reduce the cost for infrastructure projects related to the development of residential housing. The bill requires the Indiana Finance Authority to prioritize applications for funding based on communities with housing-friendly zoning e.g., no mandated architectural standards, minimum setbacks, allow accessory dwelling units and encourage greater density. The bill was amended in the Senate to include language from SB 300 that removes the 1% growth cap for establishing a residential housing development program and a tax increment allocation area and eliminates the requirement to obtain approval from the school board. Additionally, the amended bill shortens the program termination date to twenty years (currently 25 years) and allows a county to designate an economic development target area (currently limited to a town or city). 

Position: Support. This IBA-priority bill is an outgrowth of the Housing Task Force’s comprehensive review of housing data that yielded 16 recommendations to improve housing supply – funding for housing infrastructure topped the list followed closely by greater flexibility in the use of residential TIF. Providing low-interest loans to communities to fund housing infrastructure, coupled with residential TIF, are financing tools that could help attract investment, spur economic development, and help communities grow.

Status: Passed the Senate 32-16 and returns to the House with amendments. The IBA, Indiana Apartment Association, Indiana Association of Realtors®, and AIM are working to secure support in the House for the concurrence vote, which is expected early next week. 

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

HEA 1157, authored by Rep. Justin Moed (D-Indianapolis) and sponsored by Sen. Kyle Walker (R-Fishers), allows the Marion County redevelopment commission to utilize residential TIF (currently available to all other counties). 

Position: IBA supports local governments’ use of residential TIF as a financing tool to help communities grow.

Status: House concurred 93-1 with amendments made in the Senate sending the bill to the governor. 

Residential Onsite Sewage Systems 

Rep. Jim Pressel (R-Rolling Prairie) dissented from the Senate amendments to HB 1402, sending the bill to conference committee. As it passed the Senate, HB 1402 requires approval from the Technical Review Panel (TRP) to update the residential onsite sewage systems rule (rule) and to enforce local ordinances that pertain to new technology or vary from the rule. In conference committee, language from HB 1647, authored by Rep. Morris (R-Fort Wayne), was amended into HB 1402 and includes provisions to: prohibit the installation of a system less than 25 feet from the edge of a sinkhole; allow a system to be installed if at least one site on the lot is suitable (currently 2 suitable lots are required); require the local health dept. to issue a permit to install a system within 30 days under certain conditions; establish a procedure and timeframe to address failing systems; allow an individual who is an IOWPA-licensed inspector or installer in at least one Indiana county to provide service in any county in Indiana but may be required to pay a county license fee.

Position: IBA supports legislation to improve the process for approval, installation, and inspection of residential onsite sewage systems. We appreciate that Rep. Pressel addressed our concern about delaying the sunset provision for local ordinances that vary from the rule to Dec. 31, 2023 since local health departments have known since Mar. 2022 that their ordinances would sunset on July 1, 2023 based on HEA 1245-2022.   

IBA remains concerned that the bill lacks a consistent timeline for updating the residential onsite sewage systems rule (e.g., every 5 years), and instead requires the Indiana Dept. of Health to update the rule “upon the recognition of new bulletins, standards, specifications, and industry standard practices that supersede those in the rules”, subject to approval by the TRP.  

Wetlands clarification looking for a home

As filed by Sen. Gary Byrne (R-Byrneville) and sponsored by Rep. Karen Engleman (R-Georgetown), SB 414 would allow point source discharge of treated sewage from an onsite residential sewage discharging disposal system under certain specific conditions. The bill was amended in a House committee and on second reading in the House by Floor Leader Rep. Matt Lehman (R-Berne) to address how IDEM is classifying isolated wetlands in the wake of the passage of SEA 389 in 2021 – specifically, historically Class I isolated wetlands are being pushed into the higher, more restrictive Class II and Class III isolated wetlands categories. While the bill passed the House 62-31, Sen. Byrne dissented on the House amendments due to the Senate’s germaneness rules. Language added to SB 414 to clarify the definition of Class III wetlands was removed from the bill during conference committee, and IBA is looking at alternative bills to insert the language.  

Position: Support. This legislation is needed to clarify what is truly a Class III isolated wetland and restore the practice of avoiding and minimizing impacts to this class of wetlands.

Floodplain mapping data

SB 242 repeals a provision that requires a local floodplain administrator to use the "best floodplain mapping data available" when reviewing an application for a permit to authorize construction in or near a floodplain. Allows an applicant for a permit authorizing the construction of a structure or other construction activity in or near a floodplain to choose whether: (1) mapping data provided by the department; (2) a federal flood insurance rate map; or (3) an engineering study provided by the applicant will be used by the local floodplain administrator when reviewing the person's permit application. The bill also requires an owner to disclose in a real estate disclosure form whether any portion of the real estate is in a floodplain, as determined by a federal flood insurance rate map or a FEMA-approved local flood plain map. Finally, the bill was amended in the House to include a 2-year restriction on the use of "lidar", which is a remote sensing method that generates three-dimensional information about the surface characteristics of the land. The bill passed the House 73-25, and Sen. Leising dissented on the House amendments. The bill is scheduled for conference committee on Monday.

Position: IBA supports the legislation to ensure property is correctly rated, land remains buildable, and homeowners are spared from paying high flood insurance premiums. 

State government reform (HB 1623)

IBA supports a pair of bills authored by Rep. Steve Bartels (R-Eckerty) and Sen. Chris Garten (R-Charlestown) that are intended to add transparency and consistency to state agency rulemaking. HB 1623 passed the Senate 30-18, and following Rep. Bartels dissent, the bill was assigned to a conference committee where language to establish a 10-member Government Reform Task Force (from HB 1200) was added. As it passed the Senate, HB 1623 pertains to administrative rulemaking and requires: state agency review of a regulatory analysis of all proposed rules and rules adding or increasing fees, fines, or civil penalties; publication of the text of a proposed rule in the first comment period and allows a proposed rule to be adopted after one comment period if no substantive public testimony is received and the rule is not more stringent than applicable federal standards; rules to be readopted or expire in five years (currently seven years); agencies to webcast public hearings and allow remote testimony. The bill also allows a person to recover attorney fees if an agency issues an order that is based on an invalid rule or issued without legal authority. The bill also includes provisions on disposal of coal combustion residuals and restricted pesticides.