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Indiana Legislative Update

By Caryl Auslander ● September 12, 2022



















Local, state, and federal highlights in this week's memo include:


  • CNBC Releases Rankings for America’s Top States for Business in 2022
  • Indiana Receives Federal Approval to Extend Postpartum Coverage
  • New Data Puts Indiana Local Road Funding Under a Microscope
  • Another Strong Revenue Report for Indiana Tax Collections
  • Dual Credits on the Rise
  • Bankruptcy Case in Indiana Could Pave Way for U.S. Tort Litigation
  • ACLU Files 2nd Lawsuit on Indiana’s New Abortion Law
  • August Report Shows More Women Entering Labor Force
  • Indiana Attorney General Challenges Court Ruling on Transgender Sports Case
  • Congress Reignites Discussion on Child Tax Credits
  • Settlement Reached on Vaping Lawsuit
  • Important Dates


CNBC Releases Rankings for America's Top States for Business in 2022


What’s new: CNBC has released their ranking for the America’s Top States for Business in 2022. CNBC scored all 50 states on 88 metrics in 10 broad categories of competitiveness. Each category is weighted based on how frequently states use them as a selling point in economic development marketing materials.


Indiana’s rankings:

  • Workforce - 48th
  • Infrastructure - 1st
  • Cost of Doing Business - 2nd
  • Economy - 10th
  • Life, Health & Inclusion - 43rd
  • Technology & Innovation - 23rd
  • Business Friendliness - 18th
  • Education - 35th
  • Access to Capital - 13th
  • Cost of Living - 9th


The bottom line: Indiana came in 14th overall in the ranking for America’s Top States for Business in 2022. (CNBC)


Indiana Receives Federal Approval to Extend Postpartum Coverage


What’s new: On Thursday, The Indiana Family and Social Services Administration (FSSA) received federal approval from the Center for Medicare and Medicaid Services (CMS) to continue its practice of extending postpartum coverage for Hoosiers receiving Medicaid during pregnancy from 60 days to one year. Indiana has been providing this extended coverage since April and Thursday’s announcement will allow it to continue.


What they’re saying:

  • “We are delighted that Hoosiers, regardless of their income, will now have access to quality healthcare for a full year following the birth of a child,” said Dan Rusyniak, M.D., FSSA secretary. “This is significant as more than 40 percent of individuals who give birth each year receive Medicaid. And, since more than half of postpartum complications occur after six weeks, extending coverage to a full year will help meet Gov. Holcomb’s goal of reducing Indiana’s maternal mortality rate.”


The postpartum coverage period is available to any individual who meets one of the following criteria:

  • Becomes pregnant while already enrolled in traditional Medicaid, HIP or Hoosier Healthwise
  • Applies and is eligible for Medicaid while pregnant
  • Applies for Medicaid after the child is born and was both pregnant and eligible in the month of application or one of the three months prior to the application month.


The CMS approval authorizes the extended coverage for Medicaid-eligible individuals for a five-year period, through March 31, 2027. (FSSA)


New Data Puts Indiana Local Road Funding Under a Microscope


What’s new: Local road funding has been an ongoing discussion with local Indiana leaders and state lawmakers, as there are some localities who feel the funding shows favoritism towards rural counties.


The details: New data shows suburban counties are also getting the short end of the stick, and now Indianapolis officials hope an alliance with other central Indiana leaders will finally persuade legislators to either alter the formula or find other ways to provide more infrastructure dollars to densely populated areas.


By the numbers:

  • In 2021, the state allocated $663 million in road funding to local governments. Marion County received over $30 million of that, or about 4.5%.
  • While Marion County maintains about 8,400 miles of roadway measured by lane miles traveled, it receives funding for only about 3,300 of those lane miles.


Dive deeper: Indiana’s road funding formula allocates gas-tax funds and other revenue by center-line miles rather than by vehicle miles traveled. Center-line miles measure the length of a road, while vehicle miles traveled per capita is calculated as the total annual miles of vehicle travel divided by the total population in a particular region. The state formula benefits thinly populated counties with fewer vehicle miles traveled and generally few lanes.


The bottom line: With the state’s gas tax set to increase on July 1, 2023 and again on July 1, 2024, some localities are hoping state officials will consider reconstructing the formula and allowing more of those extra dollars to go to urban and suburban areas. (IBJ)


Another Strong Revenue Report for Indiana Tax Collections


What’s new: Indiana’s latest revenue report shows stronger-than-anticipated tax collections with General Fund revenues over $1.5 billion, up $128.1 million (9%) from December 2021 projections.


  • That sum is $173.3 million (12.6%) above revenue for August 2021 and comes in slightly above tax collections from July.


By the numbers:


  • Sales tax collections came in at $861.5 million, $28.3 million (3.4%) higher than estimated and $56 million (6.9%) above August 2021 collections.
  • Corporate taxes were still $2 million (17.1%) lower than revenue in August 2021.
  • Individual income taxes saw a $71 million (13.1%) increase over the forecast for a total of $611.9 million, $108.6 million (21.6%) above last year.


The bottom line: Despite decreased collections in tax collections from riverboat wagering, the state is still seeing higher-than-expected growth in tax collections revenue. (Indiana Capital Chronicle)


Dual Credits on the Rise


What’s New: Many Hoosier high-schoolers have the option to earn college-level credits while still in secondary school — an opportunity that Indiana education officials say could boost the number of students who pursue some form of higher education.


By the numbers: For the 2022-23 academic year, 141 high schools and nearly a dozen postsecondary institutions will offer the Indiana College Core.


  • The curriculum consists of a 30-credit-hour block of general education courses that transfer between all of Indiana’s public institutions and some private colleges
  • Core credits can be earned through a combination of dual credit, Advanced Placement courses and dual enrollment classes
  • About 2,300 Indiana high school students earned the 30-hour block of general education credits in fiscal year 2022
  • Since 2014, over 10,000 high school students have earned the Core certificate


Why it matters: Indiana Commissioner for Higher Education, Chris Lowery, stated that students who earn College Core credits are more likely to enroll in college and go on to earn degrees or technical certificates.

 

  • That could mean a helpful boost to Indiana’s overall college-going rate — recent data indicates only half of Indiana’s 2020 high school graduates pursued some form of college education beyond high school.
  • Indiana education data shows that 90% of Indiana College Core earners from the class of 2020 went on to attend college. (Indiana Capital Chronicle)


Bankruptcy Case in Indiana Could Pave Way for U.S. Tort Litigation


A bankruptcy case in Indiana could help upend the mass tort litigation system in the U.S.


Driving the news: 3M, the conglomerate, recently put its Aearo Technologies subsidiary into bankruptcy. It aims to use the bankruptcy process to settle over 230,000 lawsuits from military service members who allege faulty earplugs made by Aearo caused hearing loss — the biggest multi-district litigation (MDL) in history.


Why it matters: Aearo's rationale for the bankruptcy involves questioning whether the U.S. mass tort and MDL system is even functional, calling its own experience "a cautionary tale of a MDL that is broken beyond repair."


  • The outcomes could provide a playbook for large, profitable parent companies — which don't appear to be insolvent — to take advantage of certain features of the bankruptcy process without actually filing for bankruptcy themselves.
  • In other words: The benefits of bankruptcy, without the drawbacks.


What they're saying: After the J&J case last year, "the flood gates are open," wrote Georgetown Law professor Adam Levitin on the Credit Slips blog.


  • The bottom line: In Levitin’s view, "like J&J, 3M appears solvent and capable of paying all of the hearing claims in full. So instead, it is hoping to use bankruptcy to be the forum for forcing a deal on plaintiffs."


State of play: So far, the Indiana bankruptcy judge refused to stay the litigation against 3M. The company's appealing. (Axios)


ACLU Files 2nd Lawsuit on Indiana’s New Abortion Law


What’s new: On Thursday, the American Civil Liberties Union of Indiana (ACLU) filed their second lawsuit that challenges Indiana’s new abortion law that is set to take effect on Thursday, September 15th.


The details: The lawsuit was filed on behalf of Hoosier Jews for Choice, and five anonymous women from a variety of faiths.


  • The lawsuit argues that the Indiana abortion law violates Indiana’s Religious Freedom Restoration Act (RFRA) which passed the legislature in 2015, and prohibits government action that interferes with a person’s religious exercise. The law states that the government must show a compelling reason to enact a law that forces someone to do something against their religious beliefs.


What they’re saying: “Indiana’s RFRA law protects religious freedom for all Hoosiers, not just those who practice Christianity,” ACLU of Indiana legal director Ken Falk said in a statement. “The ban on abortion will substantially burden the exercise of religion by many Hoosiers who, under the new law, would be prevented from obtaining abortions, in conflict with their sincere religious beliefs.”


Zoom out: Two weeks ago, the ACLU of Indiana filed a separate lawsuit on behalf of health care providers and a pregnancy resource center. That lawsuit is still pending, awaiting the assignment of a special judge to preside over the case. (Indiana Capital Chronicle)


August Report Shows More Women Entering Labor Force


What’s new: According to new data released by the U.S. Department of Labor, more women entered the workforce is August, which helped to raise the overall US labor force participation rate for the month.


By the numbers:


  • The number of women in jobs jumped by 386,000 -- the most since March 2021 -- to 77.4 million
  • Female employment reached the highest level since February 2020
  • The labor-force participation rate for women aged 25 to 54 -- known as prime working age -- rose to 77.2% in August, the highest in 22 years
  • Latina women saw strong gains last month, with the share of females over age 20 who were working, rising to 58.3% from 57.7%
  • The share for Black women dropped to 58.4% from 59% in July
  • For men, the prime-age participation rate increased 0.2 percentage point to 88.6%. The shift reduced the participation gap between the two groups to 11.4 percentage points, the narrowest on record


(Bloomberg)


Indiana Attorney General Challenges Court Ruling on Transgender Sports Case


What’s new: Indiana Attorney General, Todd Rokita, has requested a federal appeals court to overturn a judge’s order against a state law that prohibits transgender females from competing in girls school sports.


The details: The appeal filed week argues that U.S. District Judge Jane Magnus-Stinson in Indianapolis was wrong in her initial ruling that ultimately allowed a 10-year-old transgender girl to rejoin her school’s all-girls softball team. The judge’s ruling only applied to the Indianapolis student as the law took effect July 1.


  • The AG’s office argued that upholding the judge’s ruling “would throw open girls’ sports to members of the male sex with all the advantages being born male confers, depriving women of equal opportunities to compete fairly and safely in sports.”


(IBJ)


Congress Reignites Discussion on Child Tax Credits


What’s new: The White House seems to be working with Senate Democrats again in an effort to make one last push for an enhanced child tax credit this year - in return for GOP votes, Democrats may dangle support for corporate tax credits for research and development that expired last year.


Why it matters:

  • A compromise package would require 60 votes in the Senate, meaning that at least 10 Republicans would need to support it without any Democratic defections.
  • In response to the Supreme Court decision on Roe v. Wade, some Republican senators, including Mitt Romney (R-Utah) and Marco Rubio (R-Fla.), have been floating pro-family policies, including a cheaper and less expansive version of Biden's child tax credit.


Context: Republicans and Manchin let Biden’s one-year child tax credit, which provided families with up to $3,600 per child, expire at the end of 2021.


  • To lower the costs of his 2017 corporate tax cuts, President Trump covered only four years of the R&D credits, putting an expiration date on tax incentives that had long been in place for corporations.
  • Republicans were banking on a future Congress to extend them, but 2021 passed without any action and they lapsed. Business groups have been looking for opportunities all year to restore them.


What they're saying"I've got a proposal that has a good deal of support on our side of the aisle,” Sen. Mitt Romney (R-Utah) told Axios. "I have not really socialized it yet on the other side of the aisle.”


  • "I've had conversations with the White House," Romney said. "They say they have interest and we'd like to chat about it."
  • “Would I like there to be a deal? Absolutely," said Sen. Mark Warner (D-Va.). “I think they are both good policies."
  • "I am for both the child tax credit and I'm for the R&D," said Ron Wyden (D-Ore.), chair of the Senate Finance Committee. (Axios)


Settlement Reached on Vaping Lawsuit


It’s no secret that vaping has been on the rise over the last several years, and the company Juul has been the focus of lawsuits over its sales and marketing practices related to teen vaping.


What’s new: Juul has settled one of its major legal threats, agreeing to a $438.5 million deal with 33 states and Puerto Rico that will be paid over a 6 to 10 year period.


The settlement states that Juul will "severely" reform its marketing and sales practices.


  • That means no free samples and no depictions of people under age 35 in marketing.



Yes, but: It seems like there is a new trend on the rise, as the e-cigarette bran Puff Bar has surpassed Juul in the last year. (Axios)


Important Dates


  • Tuesday, September 13th at 10am - 21st Century Energy Policy Development Task Force
  • Tuesday, September 20th at 10am - Interim Study Committee on Roads and Transportation
  • Tuesday, September 20th at 10:30 am - Interim Study Committee on Courts and Criminal Code
  • Tuesday, September 20th at 12pm - Interim Study Committee on Public Health, Behavioral Health, and Human Services
  • Wednesday, September 21st at 1pm - Interim Study Committee on Child Services
  • Thursday, September 22nd at 12:30pm - Administrative Rules Review Task Force
  • Monday, September 26th at 10am - 21st Century Energy Policy Development Task Force
  • Monday, September 26th at 1pm - Interim Study Committee on Pensions Management Oversight
  • Tuesday, September 27th at 10am - Interim Study Committee on Energy, Utilities, and Telecommunications
  • Wednesday, September 28th at 1:30pm - Interim Study Committee on Roads and Transportation
  • Thursday , September 29th at 10am - Housing Task Force
  • Monday, October 3rd at 11am - Interim Study Committee on Financial Institutions
  • Tuesday, October 4th at 10:30 am - Interim Study Committee on Courts and Criminal Code
  • Tuesday, October 4th at 12pm - Interim Study Committee on Public Health, Behavioral Health, and Human Services
  • Wednesday, October 5th at 10am - Interim Study Committee on Government
  • Wednesday, October 5th at 1pm - Interim Study Committee on Child Services
  • Monday, October 17th at 1pm - Interim Study Committee on Pension Management Oversight
  • Wednesday, October 19th at 10am - 21st Century Energy Policy Development Task Force
  • Thursday, October 20th at 10am - Housing Task Force
  • Thursday, October 20th at 12pm - Interim Study Committee on Public Health, Behavioral Health, and Human Services
  • Thursday, October 27th at 10am - Housing Task Force