Committee deadlines pass as end of session approaches

Tuesday, Feb. 27, was the House deadline to vote bills out of committees, and the 100-member chamber has until March 4 to approve Senate bills. Thursday, Feb. 29, was the Senate deadline for bills to clear committees, and the 50-member chamber has until March 5 to approve House bills. The legislative session must adjourn by Mar. 14, but will likely wrap up sooner. While the Indiana General Assembly has approved a handful of bills and sent them to Gov. Holcomb, only one has been signed into law - House Enrolled Act 1383. This was a priority bill for IBA this session, streamlining the State Regulated Wetland Law and removing ambiguity from wetland classification definitions.

Senate passes pair of IBA-priority bills to allow development on slopes and improve housing infrastructure program

HEA 1108 prohibits a local unit of government from preventing development exclusively based on slope when the slope of the site is less than 25%, unless it is within a watershed area of a reservoir that is a source of the municipality’s drinking water. This was a priority bill for IBA and members of the BA of South Central Indiana in Monroe County to protect property rights and ensure that lots remain buildable when slope stability is assured, erosion control measures are taken, and the home’s septic system complies with the Indiana Onsite Sewage Systems Rule. The Senate passed the bill 39-10.

HB 1387 makes necessary changes to ensure the success of the Residential Housing Infrastructure Assistance Program established by the Indiana General Assembly in 2023. Specifically, the bill expands the definition of “economic development facilities” applicable to certain statutes to include facilities for housing, including age-restricted housing and residential housing development. The bill also makes a technical change from “municipalities” to “political subdivisions” for the purpose of the 70/30 funding split with 70% of the funding allocated to participants engaged in housing infrastructure projects benefitting political subdivisions with a population of less than 50,000 and 30% available for all other political subdivisions. The bill received a unanimous vote in the Senate 46-0. 

Senate to vote on 3rd–party inspections bill next week 

HB 1329 could improve the inspection process for residential construction by allowing qualified 3rd parties to perform inspections. The bill also contains language that prohibits government-mandated inspections of a Class 2 structure or a residential onsite sewage system as a condition of the sale of property. Based on concerns shared by the St. Joseph County Health Dept. and supported by the HBA of St. Joseph Valley, the bill was amended in the Senate Committee on Local  Government last week to create an exception that would allow a governmental entity in certain counties to require these inspections if it has been more than 15 years since the property was last sold, or the Class 2 structure or system was constructed or installed. The bill was further amended on second reading in the Senate to limit the exception to property located in that part of St. Joseph County containing a designated sole source aquifer. The bill is scheduled for a final vote in the Senate next week.

Senate passes amended Economic Enhancement District bill

HB 1199 makes changes to the Indianapolis Mile Square Economic Enhancement District (EED), which the consolidated city planned to utilize to support public safety, beautification, and homelessness projects through fees paid by all property owners in the EED. As filed, the bill repealed the EED. A Senate committee amended the bill to allow the EED with an opt-out for apartment owners.  A second reading amendment was adopted in the Senate extending the boundaries of the district to a two-mile square and requiring the Indianapolis City-County Council to readopt the ordinance to establish the EED with a 60-day public notice and hearing process for all affected property owners. The Senate passed the bill 42-7 and it returns to the House with amendments. 

Septic inspection bill scheduled for final vote in Senate

HB 1352 as filed prohibits government-mandated inspections of septic systems unless they’re required by the manufacturer, requested by the owner, required by federal or another state law, or if there is a complaint filed with the health department. The bill also prohibits a district or local health department from charging a periodic permit or inspection fee that exceeds the actual cost of the inspection. A second reading amendment was adopted in the Senate to allow an officer or employee of a local health department to inspect residential onsite sewage systems and nonresidential onsite sewage systems after installation under certain conditions. The bill is on final reading in the Senate next week. 

House passes bill creating tax incentive for preserving wildlands

SB 246 offers a tax incentive for owners who preserve wetlands classified as wildlands. For purposes of property tax assessment, “wildlands” are parcels of land that are at least 1/2 of an acre in size and contain wetlands. The bill passed the House 93-2 and returns to the Senate without amendments. 

Bill expanding tools to address blighted properties advances to 3rd reading in Senate

HB 1320 clarifies what unsafe structures local units of government can address, including manufactured and mobile homes. The bill is scheduled for 3rd reading in the Senate next week.

Rick Wajda, Chief Executive Officer         Carlie Hopper, Governmental Affairs Director

Indiana Builders Association | 101 West Ohio Street, Suite 710 | Indianapolis, IN 46204

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