Legislative Update 119th General Assembly Friday, January 15th, 2016 Week One and Two Overview Happy New Year! In addition to your weekly bill track report, the Barnes & Thornburg legislative team will provide you with this weekly newsletter highlighting various happenings in the Indiana General Assembly. The second session of the 119th Indiana General Assembly reconvened on Tuesday, January 5th, 2016. This year is a "short session,” which means it is a non-budget year and the General Assembly will conclude their business in mid-March. We expect several topics to receive significant discussion during the 2016 session. These topics include transportation funding, the expansion of Indiana civil rights laws to cover LGBT individuals, increased pseudoephedrine regulation, the sale of alcohol on Sundays, and continued education reform. Governor Pence gave his State of the State Address to members of the Indiana General Assembly on Tuesday. Governor Pence applauded lawmakers for expediting legislation that will protect teachers and school corporations from the negative effects of questionable ISTEP scores from the 2015 administration of the exam by CTB McGraw Hill. He identified the implementation of the new HIP 2.0 program as a positive step in the right direction for the state. The Governor also urged the General Assembly to find solutions to the state’s growing drug problem. Governor Pence closed by making his stance on pending civil rights legislation clear: “I will not support any bill that diminished the religious freedom of Hoosiers or that interferes with the constitutional rights of our citizens to live out their beliefs in worship, service, or work.” Click here to watch the Governor’s speech. We also heard from Indiana Supreme Court Chief Justice Loretta Rush as she delivered the State of the Judiciary Address to the General Assembly on Wednesday. Chief Justice Rush focused much of her speech on the growing drug crisis in Indiana. “There are no easy answers, but your courts stand ready to help communities bring productivity back to those who have lost their way.” Points of Interest Eight Senators recently announced that they will not be running for re-election in 2016. Senator Earline Rogers, a Democrat from Gary, Indiana, plans to retire from the Indiana General Assembly following the 2016 session. Before her election to the Indiana Senate in 1990, Senator Rogers served eight years in the Indiana House of Representatives. A 38-year veteran of the Gary Public School system, Senator Rogers has spent her career advocating for greater educational opportunities for Indiana’s children. Senator Patricia Miller, Chair of the Senate Committee on Health and Provider Services since 1993, says this will also be her last year in the Indiana General Assembly. Senator Miller first joined the Indiana House of Representatives in 1982 before being elected to the Senate in 1983. During her 30+ years in the General Assembly, Senator Miller has authored numerous pieces of legislation to improve Hoosiers’ quality of life. Senator John Broden announced his intention to run for the St. Joseph Circuit Court bench late last week. Senator Broden was elected to the Indiana Senate in 2000 and is currently the Ranking Minority Member in the Senate Committee on Local Government as well as the Senate Committee on Tax & Fiscal Policy. After 50 years of public service, Senator Jim Arnold of LaPorte, Indiana announced he will not seek a third term in November. Prior to serving in the Indiana Senate, Senator Arnold was a member of the LaPorte County Sheriff’s Department and was elected as sheriff in 1999. Senator Scott Schneider announced earlier this fall that he would not be seeking another term in the Indiana Senate. Senator Schneider was elected to the Indiana Senate in 2009 after serving as a member of the Indianapolis City – County Council. Senator Brent Steele has served in the Indiana Senate since 2004, building upon seven years in the Indiana House of Representatives. After announcing his plans to leave the Indiana State Senate, Senator Steele said he will focus on a few key issues he is particularly passionate about, one of which includes reforming the state’s medical malpractice cap. Senator Steele has served as the Chair of the Senate Judiciary Committee since 2004. Senator Brent Waltz announced that he will give up his seat in the Indiana Senate in favor of entering the race for the 9th Congressional District of Indiana. Senator Waltz has served in state and local government for the past 15 years. Senator Carlin Yoder will not be seeking another term, citing family commitments that demand more of his attention. Senator Yoder said he must take a break from public service to focus on adopting a new child into his family along with his wife, Jayme. Senator Yoder has not ruled out running for another public office in the future. Committee Updates All bills have now been filed and legislators are hard at work in committees and on the floor. The following is a summary of some of the committee discussions that took place this week. Environmental Issues On Monday morning, the Senate Environmental Affairs Committee heard Senate Bill 88, Solid waste management district taxing power. The author, Senator Luke Kenley, presented his bill with the purpose of eliminating property tax levies as a source of revenue for solid waste management districts. Senator Kenley explained that property tax revenue is already stretched thin due to property tax caps. Instead of levying property taxes, solid waste management districts will be able to impose a user-based fee as a way to create revenue, but not a uniform per parcel fee (which would be banned under the proposed legislation.) Some Committee members were concerned that a user-based fee would not be sufficient to sustain current funding needs for solid waste management districts. Senator Kenley said he is working on an amendment to clarify who should be charged an additional fee to supplement funding. The Committee passed the bill with a vote of seven to two. Since Senate Bill 88 involves taxing powers, it was recommitted to the Senate Tax & Fiscal Committee and is awaiting a hearing there. A similar bill, Senate Bill 366, Solid waste management districts, was scheduled to be heard concurrently with Senate Bill 88. Committee Chairman Senator Ed Charbonneau decided to hold SB 366 and hear it at the next Committee meeting on January 25th Drug Abuse Treatment & Prevention The Senate Health & Provider Services Committee met on Wednesday to discuss two bills related to reducing drug addiction and dependence in the state of Indiana. Senator Brandt Hershman’s Senate Bill 214, Controlled substances, proposes to limit Medicaid reimbursement for a drug commonly called Subutex or Suboxone for the treatment of pain management. Those in favor of the bill testified on the harmful effects of the drug and said it hurts patients more than it helps them. Those opposed to the bill stated that it unfairly limits the prescribing powers of physicians. Senate Bill 214 was held for further discussion by the Committee. Also addressing drug use in Indiana was Senate Bill 297, Opioid dependence treatment, authored by the Committee Chairwoman, Senator Patricia Miller. Senate Bill 297 requires Medicaid coverage for inpatient detoxification and the treatment of opioid or alcohol dependence. It also adds some requirements related to mental health treatment. A representative from the Attorney General’s office spoke in support of the bill, saying that it will allow the state to provide more comprehensive services to those who are struggling with drug addiction and subsequent recovery. Several stakeholders also testified in favor of the bill, but there were a few unanswered questions from Committee members related to how the additional services would be administered through and covered by Medicaid. Chairwoman Miller elected to hold the bill for further discussion. Topics in Education After Representatives acted quickly to pass House Bill 1003, Teacher evaluations, through the House and on to the Senate earlier this week, the bill was heard by the Senate Education and Career Development Committee on Wednesday. House Bill 1003 ensures that teacher evaluations, and resulting stipends from the performance grant, are not negatively affected by recent incorrect ISTEP scores from the 2015 administration of the exam by CTB McGraw Hill. Scores may, however, be used if they improve a teacher’s evaluation. Senator Mishler presented Amendment #4 to ensure that teachers with similar scores in consecutive years receive similar stipend amounts. The amendment also makes teachers eligible for a stipend if they recently changed schools. Members of the Committee adopted the amendment unanimously. While stakeholders testified in favor of the bill and thanked legislators for acting to protect teachers, they also voiced their dissatisfaction with the ISTEP test and called for changes. House Bill 1003 was passed as amended with a vote of eleven to zero. Road Funding Legislation This week, legislators tackled a number of bills aimed at solving our state’s road funding shortage. In his State of the State Address, Governor Pence said he supports legislation that increases transportation funding without raising taxes. Senator Carlin Yoder’s Senate Bill 333, Transportation funding, was heard in the Senate Homeland Security & Transportation Committee on Tuesday. The bill seeks to transfer state reserves, in excess of 11.5% of general revenue appropriations, to the state highway fund for road and bridge repair. The bill also calls for the Treasurer of State to transfer the first $50M of interest accruing to the Next Generation Trust Fund after March 15, 2016 to the state highway fund. The Committee passed the bill unanimously and it was recommitted to the Senate Appropriations Committee where it has not yet been scheduled for a hearing.