Weekly Legislative Update - March 7
The Week in Review
On Tuesday, the House Insurance Committee took testimony on Senate priority bill SB 3, Fiduciary duty in health plan administration(Sponsor: Rep. Martin Carbaugh, R-Fort Wayne). The bill was ultimately held for amendments and a vote at a later committee meeting. SB 3 seeks to require that health plan intermediaries act in the best interests of Hoosier workers. The bill provides that a third-party administrator, pharmacy benefit manager, employee benefit consultant, or insurance producer acting on behalf of a plan sponsor owes a fiduciary duty to the plan sponsor.
Senate Education and Career Development met on Wednesday to consider House Republican priority bill HB 1002, Education matters(Sponsor: Sen. Jeff Raatz, R-Richmond), this bill seeks to clean up education language in Indiana Code removing around 35,000 words from Title 20 in the Indiana Code. The hearing was testimony only and will be voted on at the next committee meeting. The sweeping deregulation bill targets expired programs that are no longer being funded and removes multiple may provisions throughout the code in an effort to establish more local control.
Later that day, the House Elections and Apportionment committee heard lengthy testimony but ultimately did not vote on SB 287, School board matters (Sponsor: Rep. J.D. Prescott, R-Union City). SB 287 requires a candidate for school board to declare a political party. Candidates must be nominated like all other elected officials, replacing the current nomination process. It also increases school board member pay from $2,000 to up to 10% of the district’s lowest starting teacher salary. This controversial bill narrowly passed the Senate 26-20.
Also on Wednesday, the House Ways and Means Committee which held testimony only hearings on two major taxation bills, SB 1, Property tax relief and SB 518, School property taxes, both sponsored by Committee Chairman Jeff Thompson, R-Lizton. Both bills drew extensive testimony lasting well into the night (10:38 pm to be exact), and the committee is expected to amend and vote on the bills at a later date.
SB 1 is a Senate Republican priority bill. It is a property tax reform bill that allows counties to create a program to defer $10,000 in property taxes. It also adjusts tax deductions for seniors and veterans, expands a first-time homebuyer tax credit, and changes how tax referendums are placed on ballots. This bill passed the Senate 37-10. Notably, Governor Braun has expressed his displeasure with the changes the Senate made to the original version of the bill (which was Gov. Braun’s version of property tax relief). The governor has indicated that if additional relief is not added to SB 1 in the second half of the legislative session, he may use his veto power to attempt to bring legislators back to the drawing board.
SB 518 was the second of the two major bills heard. SB 518 would require school districts that approve new property tax levies for projects, school safety, or operating costs after May 10, 2025, to share a portion of that revenue with certain specified charters in their area. In 2028, all school districts must share their operations fund levy with eligible charter schools (some schools are exempt). This bill also adjusts grant funding for charter schools based on the property tax revenue and adds new rules for charter school governance and closures. The bill drew both heavy support and heavy opposition from testifiers in the committee with more than 100 people signing up to speak on the bill.
Governor’s Office
Governor Braun has signed multiple new executive orders focused on workforce participation, fraud prevention, parental leave for state employees, women in college sports, and gender ideology. All executive orders signed thus far can be found here. See below for a breakdown of each new order:
- Executive Order 25-32: Promoting Long-Term Growth and Flourishing Through Workforce Encouragement for Hoosiers Without Jobs: Governor Braun’s first executive order serves the purpose of “turning the safety net into a springboard” when it comes to unemployment. The executive order requires additional work search activities for those seeking unemployment benefits from the state. Recipients must be actively seeking employment during the first week of enrollment and the Department of Workforce Development (DWD) is to more rigorously audit work search activities to ensure compliance.
- Executive Order 25-33: Assuring Prudent Use of Taxpayer Funds by Conducting Data Cross Checks of Unemployment Insurance Claims: This executive order requires DWD to implement several measures to reduce fraud. The first of these measures is applicant verification through state and federal hire directories, as well as cross-checking applicant eligibility in multiple places. Additional reviews must be made of claims that were filed with the same internet address, mailing address or Bank account. Additionally, progress reports must be made to the Governor’s office on the status of these findings by DWD.
- Executive Order 25-34: Promoting Families and strengthening the State Workforce Through New Parent Leave and Childbirth Recovery Leave for State Employees: This order expands paid parental leave for state employees, including six weeks for childbirth recovery (eight for C-sections) and leave for those grieving a stillbirth at 20 weeks or later. All full-time state employees can receive up to 150 hours of paid parental leave after birth or adoption, regardless of how long they’ve worked for the state. For employees with less than six months of service who take leave must commit to at least one year of continued employment afterward.
- Executive Order 25-35: Ensuring Compliance with Common-Sense Protections for Women and Girls in Education and Sports: This order requires that Indiana’s state educational institutions comply with the 2020 Title IX Rule, which defines sex as strictly male and female. Furthermore, the Indiana Commission for Higher Education must review policies related to post-secondary athletics to ensure their alignment with this rule. In short – this order seeks to align Indiana guidelines with federal guidelines under the Trump Administration’s Title IX interpretation.
- Executive Order 25-36: Respecting the Biological Dichotomy Between Men and Women as Fundamental & Deeply Rooted Legal Principle Embedded in Indiana Law: This order mandates that Indiana adhere to a biological definition of sex, defining the terms male and female. The order also prohibits state agencies from using state funds to promote gender ideology and directs them to avoid terminology that blurs the distinction between men and women.