Tag: legislation

2018 Legislative Wrapup

Posted on by Richard Hedgecock

Much has been made of the ending of the 2018 state legislative session, and with good reason! It was, by all accounts, chaotic and messy, leaving more than a few broadly supported issues unresolved. Governor Eric Holcomb will be calling legislators back to the Statehouse in May to finalize a couple of these issues (federal/state tax law conformity, additional school safety funding) in a short special legislative session. But what happened with ICI’s legislative issues? Let’s recap.

ACTION ALERT UPDATES

HB 1015 (Torr) contained two different sections aimed at changing some language in state indemnity statutes. After some early negotiating on the House side, Rep. Torr agreed to alter his approach and support changes to the law aimed at eliminating problems with vicarious liability issues on worksites – a stance the construction industry broadly supported. However, the second section of the bill contained provisions supported by design professionals that would have statutorily removed them from the private negotiation process with owners and contractors in regards to duty to defend provisions in contracts. A business coalition made up of contractors, utilities, manufacturers and other entities staunchly opposed this section of the bill to the point where the entire measure died in a conference committee. We should be prepared for this idea to come back in a future legislative session.

HB 1021 (Torr) was an attempt to make it easier for private sector project developers to “bond around” liens that have been placed on a project in order for contractors to get paid for work they have performed. After the bill passed the House, ICI members jumped into the battle and began contacting state Senators to voice concerns about taking away what little leverage contractors have in ensuring payment. And your efforts worked! Senators didn’t even hear the bill in committee.

HB 1341 (Soliday) was one of the bills caught in the last-day-of-session shenanigans. This bill, a priority of the Governor, would have set up a regulatory framework for the operation of autonomous vehicles on Indiana roads and highways. Despite some differences in the two legislative chambers, it was expected to pass, but ultimately didn’t get across the finish line. We expect this bill to come back in 2019.

SB 242 (Holdman) was the omnibus Department of Revenue bill also caught up in the final minutes of the session. The bill contained language that would have put into statute the decades-long sales tax exemption on equipment used in the manufacture of asphalt. Though elements of this bill related to federal tax law conformity are expected to be considered during this year’s special legislative session, this portion of the bill will not come back until 2019.

OFF TO SUMMER STUDY COMMITTEE

HBs 1301 and 1374 (Carbaugh and Soliday) both contained language asking for a summer legislative study relating to payment and performance bonds for future public-private projects. Both items are awaiting the Governor’s signature.

HR 8 (Pressel) is another measure asking for a summer study committee, this one on the use of speed cameras in work zones and increased fines for distracted drivers. Ultimately, Legislative Council will decide if these issues will make the limited list of study topics.

THANK YOU

We want to express our appreciation to ICI members for picking up the telephone or typing out an email whenever we requested your help. Your work on these measures made a HUGE difference. Please remember this next year, and in future years, when similar requests come across your desk – your input matters!

2016 Legislative Session Wrap-Up

Posted on by Dan Osborn

Road Funding

The Indiana General Assembly didn’t pass long-term transportation funding during the 2016 short session, but it approved several bills allowing for diversion of existing and future collected tax funds from the local option income taxes reserves, general fund and gas use tax. These will provide:

  • $330 million for local units of government in fiscal year 2016;
  • $228 million for INDOT in fiscal year 2017
  • $414 million for local units of government in fiscal year 2017;
  • $68 million for local units of government in fiscal year 2018; and
  • $105 million for local units of government in fiscal year 2019.

Counties can now double their wheel tax (raising an additional $286 million), and municipalities with a population of more than 10,000 may impose a wheel tax at their existing rate (raising an additional $90 million).

Lawmakers created a 16-member task force of legislators and gubernatorial appointees (including one recommended by Build Indiana Council) to analyze state and local road and bridge needs and long-term funding methods. The task force must present its recommendations to the State Budget Committee by January 1, 2017.

Lake, LaPorte, and Porter counties will see additional funding from revisions to local income tax laws, and Henry County plans to use a food and beverage tax for roads. Lagging farmland assessment values will decrease local tax revenues across the state.

Time & Material

Contractors selling non-tax exempt construction under a time and material (T & M) agreement or simply providing invoices including detailed labor, material, and equipment costs should consult with an accountant familiar with contract law and the new Indiana Code 6-2.5-4-18, Retail Transactions of Merchants. The new law is retroactive to January 1, 2007. Indiana Department of Revenue supported the bill to provide a legal basis for existing administrative code 45 IAC 22-3-9. The law states that contractor selling construction under a T & M contract must collect and remit the state gross retail tax.

Insurance

Legislators adopted language that provides a specific legal basis for “named driver exclusions” that limit liability to the insured.

VBE

Lawmakers added a definition of “veteran” to Indiana’s small business code. For the purposes of qualifying as a veteran-owned business for set-aside government purchases, a veteran is any individual who is serving, or has served, in any branch of the armed forces of the United States or their reserves, the national guard, or the Indiana National Guard. The bill also removed the requirement that a veteran be a resident of Indiana for at least one year before making an offer to bid on a state contract.

Public Works Contracts

The public works contractor qualification requirement, adopted in 2015 and scheduled to go into effect on July 1 will now go into effect on December 31 of this year. Lawmakers added two new sections under State Public Works – Qualifications for State Public Works Projects and INDOT – Qualifications of Bidders for Contracts. Contractor prequalification is not required for public works contracts awarded by a local unit of government if

  1. The total estimated contract amount does not exceed $300,000;
  2. The public agency complies with Indiana Code 36-1-12 including bidding procedures, bonding and drug testing.

Local government units may not establish wage rates in a contract in a public works contract unless mandated by federal or state law.