Lanane: Week in Review at the Indiana General Assembly

State Senator Tim Lanane
D-Anderson

INDIANAPOLIS, IN - Facing an April 29th deadline for the conclusion of this session of the General Assembly, state lawmakers have only a few weeks left to make final decisions on major issues including a state budget plan and salvaging the state’s depleted unemployment compensation fund. A proposed increase in the state’s alcohol tax is also generating a lot of attention. Thursday marked the deadline for bills to be reported out of standing committees. Beginning next week, joint House-Senate conference committees will become the primary focus for lawmakers as final compromises are sought. The following brief summary provides an update on issues before the State Senate this week.

State budget deliberations heating up

Crafting a new state budget has become increasingly difficult this session due to huge losses in state revenue brought on in part by high unemployment. State revenue figures released last Monday indicated that state revenues were down $157 million for the month of March bringing total revenues to $755 million below projections for the first nine months of the fiscal year. Legislative debate circles around whether the legislature should put forth a one-year or two-year budget plan as well as tap into the state’s $1.3 billion reserve which includes nearly $400 million in the state’s rainy day fund. Majority Republicans in the Senate introduced their $28.1 billion two-year budget proposal in the Senate Appropriations Committee Thursday and advanced it to the full Senate for further consideration next week.

Negotiations underway

Members of a select House-Senate conference committee are negotiating a plan to fix the state’s bankrupt unemployment compensation fund. An increasing line of credit from the federal government totaling more than $628 million to date has been keeping the fund afloat. Senate Republicans recently advanced their plan contained in HB 1379 that includes some increases in employer taxes, but the plan also cuts employee benefits and tightens eligibility standards. Democrats are fighting for additional financial support and protections for the state’s unemployed. As of February, the state’s unemployment rate was 9.4 percent which equates to about 320,000 Hoosiers who have lost their jobs. Among those unemployed, approximately 163,000 are collecting unemployment benefits.

Senate Republicans propose tax increase

Late last week Senate Republicans rolled out a plan that would double the state alcohol tax to help bail out the Capital Improvement Board (CIB) that is $47 million in the red. The Indianapolis board oversees the operation of Lucas Oil Stadium, Conseco Fieldhouse, Victory Field and the Indiana Convention Center. Contained in HB 1604, the statewide tax increase would add a penny to the cost of a 12-ounce beer and almost two cents on a shot of liquor. Under the proposal, the tax increase could generate about $42 million annually that would be directed to cities and towns for local economic development projects. The capital city’s share would go directly to the board. Indianapolis would also have to increase other taxes including those on game tickets, hotels, food and beverages. Democrats plan to propose alternative solutions that will not increase taxes. Democrats are also calling for the governor, who pushed for state control of the stadium project, to follow through with a plan to address the resulting deficit. 

Other Senate action

Legislation eligible for final consideration that would put additional education and job training within reach of Hoosier workers is the goal of HB 1036. The bill would establish a Lifelong Learning Account (LiLA) pilot program. These accounts offer workers an opportunity to invest in education or training programs through savings that is matched by an employer, a financial institution, the state, or other entities. LiLA funds could be used to pay for education and training costs of postsecondary educational institutions, vocational schools or job training programs. Money withdrawn from these accounts would not be subject to state income taxes. A state tax credit would also be provided for LiLA contributions. Participation in the program would be limited to those individuals with an annual household income that does not exceed 300 percent of the federal poverty level (Annual family income for 2 = $43,710; for 3 = $54,930; for 4 = $66,150).

Legislation co-sponsored by Lanane to place regulations on large-scale dog-breeding operations and crack down on puppy mills has passed the Senate. In its current form, HB 1468 would require individuals who have more than 20 adult female dogs capable of breeding to register as breeders. Those who sell at least 500 dogs a year would have to register as commercial dog brokers. Under the bill, both breeders and brokers would have to pay annual registration fees to help fund state inspections. Testimony revealed that dog-breeding has become a multi-million dollar industry in Indiana, partly because the state has few regulations. The lack of regulation also ties the hands of law enforcement officials who investigate disreputable operations. HB 1468 is now headed to a conference committee to iron out differences between House and Senate-passed versions of the bill.

Vendors at farmers’ markets would be able to accept food stamps, credit cards and debit cards for locally-grown fruits and vegetables under HB 1535. This bill would require the state Division of Family Resources to provide local market administrators or retailers with wired or wireless point of sale terminals connected to the state’s electronic benefits transfer (EBT) system. HB 1535 now returns to the House for consideration of Senate changes made to the bill.

Bills signed into law

The governor signed several bills into law this week including:  House Enrolled Act (HEA) 1479 which requires the Department of Education and other organizations to work together to develop initiatives focusing on the recruitment and retention of qualified educators from underrepresented populations and teacher shortage areas; HEA 1331 requires cities and towns to supply body armor for police officers and to replace when necessary; HEA 1193 adds school corporations, colleges and universities to the list of entities that can apply for grant money under the E85 (ethanol) fueling station grant program to assist in the construction of ethanol fueling stations; and HEA 1258 will allow veterans with former prisoner of war vehicle license plates as well as disabled veterans to park at no charge at city parking meters.

Upcoming deadlines

April 15             Last day to consider bills sent over by the opposite chamber

April 29             Session adjourns

To stay informed about legislation moving through the state legislature or to track legislation, log on to www.in.gov/legislative . This site provides complete bill information as well as committee hearing dates and agendas. From this site, you can also watch and listen to House and Senate floor debate while the chambers are in session as well as some committee hearings.

Visit my Senate web site at www.in.gov/s25 and subscribe to receive periodic e-mails from me about the major issues being debated this session.

Personal contact with constituents has a direct impact on the legislation we consider and what ultimately becomes law. Feel free to contact me with your comments and concerns regarding pending legislation or if I can provide any assistance.

Mailing address:            Statehouse, 200 W. Washington Street, Indianapolis, IN 46204

Telephone:                    1-800-382-9467, ext. 2-9534

Email address:              s25@iga.in.gov