Sen. Travis Holdman

Establishes the northeast Indiana strategic development fund (fund) administered by the northeast Indiana strategic development commission (commission). Prohibits money in the fund from being used for the purposes of expanding or increasing access to broadband. Adds additional purposes to be carried out by the commission in the development area. Expands the membership of the commission to include two additional voting members to be appointed by the mayors and commissioners caucus of the northeast Indiana regional development authority and specifies certain qualifications for the appointments.

Appropriates money for capital expenditures, the operation of the state, K-12 and higher education, the delivery of Medicaid and other services, and various other distributions and purposes. Requires a researcher to execute a data sharing agreement that is approved by the management performance hub to receive access to confidential records. Provides that the auditor of state is also known as the state comptroller. Provides that, after June 30, 2023, the auditor of state shall use the title "state comptroller" in conducting state business, in all contracts, on business cards, on stationery, and with other means of communication as necessary. Establishes the attorney general contingency fee fund. Establishes the: (1) state opioid settlement fund; and (2) local opioid settlement fund; into which funds received from opioid litigation settlements must be deposited. Provides that the office of the inspector general shall provide informal advisory opinions and that the opinions are confidential. Allows the budget committee to submit the budget report and budget bill or bills to the governor on or before the second Monday of January, or the third Monday of January in the year in which a gubernatorial election is held (instead of before that date). Requires the state personnel department to require a contractor, when contracting for health care coverage for state employees, to use value based coverage. Repeals a provision that makes a state general fund appropriation to the board of trustees of the Indiana public retirement system if the money available in the special death benefits fund is insufficient to pay death benefit claims. Allows the Indiana economic development corporation (IEDC) to certify an applicable tax credit that exceeds the maximum allowable amount after review by the budget committee. Provides that the regional economic acceleration and development initiative program expires June 30, 2026. Specifies that the county or municipality that did not approve the relocation of an outdoor advertising sign is responsible for compensation of the taking of the outdoor advertising sign. Provides that an owner may relocate an outdoor advertising sign that is subject to a pending eminent domain action. Allows an individual to claim an increased exemption amount for a dependent child in the first year in which the exemption amount may be claimed for the child. Reduces the individual income tax rate to 2.9% by 2027 and eliminates all trigger provisions in current law. Establishes the regional public safety training fund. Repeals provisions relating to the establishment of the: (1) Indiana homeland security foundation; (2) Indiana homeland security fund; and (3) fire training infrastructure fund. Allows certain members of the public employees' retirement fund or Indiana state teachers' retirement fund to file an election to begin receiving retirement benefits while holding a position. Changes the state police pre-1987 benefit and supplemental pension benefit calculation from being based on the sixth year of service to the fourth year of service. Repeals the public mass transportation fund. Repeals the financial responsibility compliance verification fund. Changes the number of years of service on which the salary matrix for state police employees is based to 15 years (instead of 20 years). Requires the department of correction to deposit the amount appropriated for the county misdemeanant fund by a county's multiplier. Requires the office of Medicaid policy and planning (office) to: (1) develop a schedule for the review of Medicaid reimbursement rates; and (2) provide a copy of the schedule to the budget committee; not later than November 1, 2023. Creates the residential water testing fund to test the water supply of an individual property owner of an eligible township. Requires the director of the state personnel department to submit a revision or adjustment to a pay plan developed for state employees to the state budget committee for review before the revision may take effect. Provides that the general assembly shall convene: (1) on the second Tuesday after the first Monday in June for the first regular technical session; and (2) on the second Tuesday after the first Monday in May for the second regular technical session. Provides that a technical session is not required to convene if the president pro tempore and the speaker jointly issue an order that convening is not necessary. Requires the general assembly to convene no later than the fourth Monday in January after organization day. Repeals provisions relating to emergency sessions and makes conforming amendments. Recouples the state earned income tax credit qualifications with the federal earned income tax credit qualifications under the Internal Revenue Code as in effect January 1, 2023. Requires a contractor that provides tangible personal property incorporated into real property in a project located in an innovation development district to maintain records of all state gross retail and use tax paid or collected during a state fiscal year. Adds state adjusted gross income taxes paid by an individual who is not an employee with respect to income received for services performed in an innovation development district for purposes of calculating income tax incremental amounts. Establishes the commission on improving the status of children fund to support the staffing and operations of the commission. Provides that a part of state user fees shall be deposited in the Indiana secured school fund. Repeals the distribution schedule for appropriations made for certain child development programs. Requires the department of local government finance to prepare an annual report and abstract concerning property tax data (instead of the auditor of state). Deletes reimbursement rate parameters for reimbursement of managed care organizations under the healthy Indiana plan. Extends the sunset of the collection of hospital assessment fees and health facility quality assessment fees from June 30, 2023, to June 30, 2025. Increases the total number of adult learner students at the Excel Centers for Adult Learners and Christel House DORS centers for whom the school may receive state funding. Establishes the Indiana education scholarship account donation fund to accept donations for administration of the Indiana education scholarship account program. Repeals the special education fund. Establishes a state tax credit for a taxpayer that makes certain qualified child care expenditures in providing child care to the taxpayer's employees. Extends provisions for the gasoline tax and the special fuel tax rates. Amends a statute concerning powers and duties of a regional water, sewage, or solid waste district established under prior law. Extends the sunset for the invasive species council and fund from July 1, 2023, to July 1, 2031. Prohibits school corporations and charter schools from charging a fee for curricular materials to students. Provides that the parent of a student or an emancipated minor who attends an accredited nonpublic school and who meets financial eligibility requirements may request reimbursement of fees charged for curricular materials. Establishes the curricular materials fund. Requires a county auditor to distribute a portion of revenue received from an operations fund levy imposed by a school corporation located in certain counties to certain charter schools (excludes school corporations that are designated as a distressed political subdivision). Requires charter schools that receive a distribution of tax levy revenue to establish an operations fund and education fund under the same provisions that apply to school corporations. Provides that in order to receive a distribution of tax levy revenue, a charter school must adopt a budget for the school year following a public meeting. Provides funding amounts for schools. Establishes the credential completion grant. Removes pathways for choice scholarship eligibility. Increases the annual income maximum for choice scholarship eligibility. Provides that a school corporation is eligible for an academic performance grant. Provides that state user fees remaining after required distributions shall be distributed to the state general fund (instead of the court technology fund). Makes certain amendments to the juvenile diversion grant program, the juvenile community alternatives grant program, and the juvenile behavioral health competitive grant pilot program (programs). Requires grants for the programs to be administered by the Indiana criminal justice institute in consultation with the juvenile justice oversight committee (oversight committee) and the grant process workgroup created by the oversight committee, taking into consideration the grant program report prepared and submitted to the commission on improving the status of children in Indiana by the oversight committee. Requires the state comptroller to deposit distributions of pro bono legal services fees received from the: (1) clerk of a circuit court; (2) clerk of a city or town court; or (3) Marion County small claims court; in the pro bono legal services fund. Requires the commission for higher education to create a separate higher educational operating funding outcomes based formula (funding formula) for Ivy Tech Community College. Requires, on or before July 1, 2023, budget committee review of all of the funding formulas created and approved by the commission for higher education. Provides that state appropriations may not be used to pay for the administration, operation, or programs of the Kinsey Institute for Research in Sex, Gender, and Reproduction. Provides that the legislative body of a first class city may adopt an ordinance to establish a special assessment district known as an economic enhancement district. Provides certain requirements for the ordinance and imposition of a special assessment. Requires the legislative body of the first class city that establishes an economic enhancement district to establish an economic enhancement district board. Extends the judicial and legislative branch leave conversion pilot program through June 30, 2025. Establishes the northeast Indiana strategic development fund administered by the northeast Indiana strategic development commission. Provides that if the amount of excess combined reserves in 2024 or 2025 exceeds $3,000,000,000, the amount that exceeds $3,000,000,000 is transferred to the pre-1996 account. Establishes the regional economic acceleration and development initiative 2.0 fund (READI 2.0). Requires the IEDC to develop a policy for a READI 2.0 program. Provides that money in the READI 2.0 fund may be used to: (1) support the IEDC's READI 2.0 program; and (2) provide grants or loans to support proposals for economic development and regional economic acceleration and development. Establishes the attainable homeownership tax credit for a taxpayer who makes a contribution to an affordable housing organization. Establishes the Medicaid oversight committee. Requires the Medicaid oversight committee to review, consider, and make recommendations concerning all requests for new services and changes in existing services for the Medicaid program. Provides that unexpended and unencumbered amounts appropriated from the federal economic stimulus fund in the state fiscal year ending before July 1, 2023, do not revert to the state general fund. Provides that unexpended and unencumbered amounts appropriated to the legislative services agency in a state fiscal year ending before July 1, 2024, do not revert to the state general fund. Requires the state comptroller to transfer $85,000,000 from the tobacco master settlement agreement fund to the state construction fund on July 1, 2023. Appropriates money for various purposes for the state fiscal year ending June 30, 2023. Urges the legislative council to assign to an appropriate interim study committee the task of studying specific issues pertaining to the feasibility of the department of child services contracting with private attorneys to perform legal services and provide representation in certain cases instead of employing staff attorneys within the department of child services for those purposes. Requires the Indiana public retirement system to study and report and present on certain topics to the interim study committee on pension management oversight before November 1, 2023. Establishes the funding Indiana's roads for a stronger, safer tomorrow task force. Makes conforming changes.

Repeals teacher training requirements regarding: (1) criminal gang organizations awareness; (2) certain information concerning homeless students; and (3) recognizing the signs and symptoms of seizures and the appropriate steps to be taken to respond to the symptoms; and requires that information concerning these subjects be included within the curriculum of teacher preparation programs. Provides that the department of education (department) may establish or license for use an online platform to provide information and training concerning these and other subjects. Removes certain requirements regarding annual performance evaluation plans for certificated employees, including: (1) certain content requirements; and (2) certain requirements that a plan be discussed. Amends requirements to be considered a probationary teacher and professional teacher. Provides that, after a school corporation has assigned an evaluator to perform a certificated employee's evaluation, the certificated employee may request the school corporation to assign another evaluator. Urges the legislative council to assign to an appropriate interim study committee the task of studying current school assessments in an effort to reduce and streamline assessments for Indiana students. Removes a provision that requires a school employer to discuss certain items with the exclusive representative of certificated employees and provides that a school employer may discuss: (1) with a certificated employee or group of certificated employees; or (2) at one or more meetings that are open to all certificated employees; any topic that significantly impacts a certificated employee's working conditions or impacts the educational quality of the school employer's students. Repeals provisions concerning: (1) requirements regarding the adoption of model evaluation plans and an approval process for the plans; (2) the obligation to discuss certain items not requiring either party to enter into a contract, agree to a proposal, or make a concession; and (3) the definition of "discuss" for purposes of the collective bargaining provisions.

Specifies certain entities, actions taken, or factors considered to which the ESG commitment provisions do not apply. Provides that if the treasurer of state concludes that the service provider has made an ESG commitment, the treasurer of state shall provide the name of the service provider and research supporting the conclusion to the board of trustees of the Indiana public retirement system (board). Prohibits the board from making an investment decision with the purpose of influencing any social or environmental policy or attempting to influence the governance of any corporation for nonfinancial purposes. Prohibits the Indiana public retirement system (system) from making an ESG commitment with respect to system assets. Provides that in making and supervising investments of the system, the board shall discharge its duties solely in the financial interest of the participants and beneficiaries of the system for the exclusive purposes of providing financial benefits to participants and beneficiaries and defraying reasonable expenses of administering the system. Provides that the board, in accordance with certain fiduciary duties, shall make investment decisions with the primary purpose of maximizing the target rate of return on the board's investments. Prohibits the board from entering a contract or modifying, amending, or continuing a contract with a service provider that has made an ESG commitment unless taking the action violates the board's fiduciary duty to the system's participants and beneficiaries. Requires the board to continue contracting with a service provider that has made an ESG commitment if the board determines that there is not a comparable service provider to replace the service provider. Requires the board to, at least annually, tabulate and report all proxy votes made by a service provider that is not a private market fund in relation to the administration of the system. Specifies certain persons and entities that are immune from civil liability and entitled to indemnification. Requires the board to: (1) ensure that reasonable efforts are made during the due diligence process before an investment is made and in monitoring investments in the public employees' defined contribution plan, an annuity savings account for the public employees' retirement fund or the Indiana state teachers' retirement fund, the teachers' defined contribution plan, the legislators' defined contribution plan, and a private market fund to determine whether any investments would violate the requirement that the board discharge its duties solely in the financial interest of the participants and beneficiaries of the system; and (2) take appropriate action, if necessary, consistent with the board's fiduciary duties. Defines terms and makes conforming amendments.

Makes certain changes to the qualification requirements for the: (1) deduction for individuals who are at least 65 years of age; and (2) additional credit for certain homesteads. Increases the amount of the supplemental homestead deduction for property taxes first due and payable in 2024 and 2025. Provides that if a taxpayer presents an appraisal to the county property tax assessment board of appeals (county board) that meets specified requirements, the appraisal is presumed to be correct. Provides that if the county board disagrees with the taxpayer's appraisal, the county board may seek review of the appraisal or obtain an independent appraisal. Provides that after the assignment of value, the parties shall retain their rights to appeal to the Indiana board of tax review. Provides that, notwithstanding any increase in assessed value of property from the previous assessment date, the total amount of operating referendum tax that may be levied by a school corporation for taxes first due and payable in 2024 may not increase by more than 3% over the maximum operating referendum tax that could be levied by the school corporation in the previous year. Provides a calculation to be used in determining the maximum levy growth quotient in 2024 and 2025. Modifies, through December 31, 2024, the threshold amounts used for determining whether a political subdivision's project is a controlled project and whether the petition and remonstrance process or the referendum process applies based on the political subdivision's total debt service tax rate, but excludes certain projects for which a public hearing to issue bonds or enter into a lease has been conducted before July 1, 2023. Creates an exception, through December 31, 2024, to a provision subjecting a controlled project in a political subdivision with a total debt service rate of $0.80 per $100 of assessed valuation to the referendum process, if: (1) the political subdivision submits a request to the department of local government finance (DLGF) seeking a waiver of the provision; (2) the proposed controlled project is a response to a maintenance emergency; and (3) the DLGF determines that the maintenance emergency is sufficient to waive the provision. Amends an exclusion from the definition of "controlled project" for projects required by a court order. Authorizes a county fiscal body to adopt an ordinance to provide property tax relief for property tax liability attributable to homesteads for qualified individuals. Provides that a county may adopt a resolution to require a local income tax supplemental distribution to first be distributed and used to lower the county's levy freeze tax rate. Requires the DLGF to approve a county's request to decrease its levy freeze tax rate if the DLGF finds that the lower rate, in addition to the supplemental distribution amount determined under the resolution adopted by the county, would fund the levy freeze dollar amount. Requires the department of state revenue (department) to annually provide each resident individual taxpayer who paid adjusted gross income taxes in the immediately previous taxable year a taxpayer receipt statement in an electronic format explaining how the individual taxpayer's taxes are being used. Requires the department, in consultation with the budget agency, to create and administer an Internet web page on which individual taxpayers may access an estimate of the allocation of their adjusted gross income taxes to various expenditure categories for the most recent state fiscal year based on the adjusted gross income taxes paid by the taxpayer. Specifies the information that must be provided on the web page. Defines "maintenance emergency". Makes conforming changes.

Changes the definition of "Internal Revenue Code" in the adjusted gross income tax law to mean the Internal Revenue Code of 1986 as amended and in effect on January 1, 2023. Makes certain changes regarding net operating losses for purposes of determinating state adjusted gross income. Provides that certain amounts for providing or expanding access to broadband service in Indiana may be subtracted from a taxpayer's state corporate adjusted gross income. Provides for successor liability for certain unpaid taxes following a business asset sale. Repeals an outdated provision requiring separate exemption certificates for manufacturers and wholesalers. Makes a clarifying change to the sales tax exemption that applies to power subsidiaries. Clarifies the acquisition date for purposes of adding back interest from tax exempt bonds issued by another state in determining Indiana adjusted gross income. Amends provisions regarding the exemption for certain income derived from patents. Provides that tax paid by an electing partnership is deposited in the state general fund. Makes clarifying changes and technical corrections to the affordable and workforce housing tax credit. Specifies the deposit and distribution of interest with respect to certain taxes. Authorizes the department of state revenue to publish or disclose the status of a governmental or nonprofit entity's sales tax exemption certificate. Provides that a person who knowingly or intentionally sells, purchases, installs, transfers, or possesses: (1) an automated sales suppression device or a zapper; or (2) phantom-ware; commits a class A misdemeanor, and increases the penalty if certain circumstances exist. Makes clarifying and technical corrections to provisions under the electronic cigarette tax. Makes certain changes to a provision contained in P.L.1-2023. Provides that an individual who is an Indiana resident and a member of a health care sharing ministry is entitled to an adjusted gross income tax deduction. Requires a taxpayer to: (1) deduct from the taxpayer's adjusted gross income for a taxable year the amount of specified research or experimental expenditures paid or incurred by the taxpayer during the taxable year; and (2) add to the taxpayer's adjusted gross income an amount equal to the deduction claimed under Section 174 of the Internal Revenue Code for the taxable year. Provides that certain transactions involving a person's acquisition of agricultural machinery, tools, or equipment are exempt from the application of the state gross retail tax. Provides that if an organization provides nonprofit agricultural organization insurance coverage, the organization is subject to a nonprofit agricultural organization health coverage tax unless the organization: (1) files a notice of election with the insurance commissioner and the commissioner of the department of state revenue on or before November 30 of a taxable year; and (2) states in the notice of election that the organization elects to be subject to state income tax for the taxable year. Provides that compensation received by an individual who: (1) is not a resident of Indiana; and (2) receives compensation for employment duties performed in Indiana for 30 days or less during the calendar year; is exempt from the adjusted gross income tax. Provides a sales tax exemption for certain components of a solar or wind energy system.

Establishes the state and local tax review task force (task force). Specifies the membership of the task force and the topics the task force is required to review. Provides that the member of the task force who is an economist is appointed jointly by the president pro tempore of the senate and the speaker of the house of representatives. Provides for the selection of the chairperson and vice chairperson of the task force.

Provides that an individual enrolled in a transition to teaching program may apply for a one time scholarship under the next generation Hoosier educators scholarship program. Establishes requirements to qualify for the one time scholarship. Provides that the maximum amount of a scholarship is $10,000. Provides that the total annual amount of scholarships awarded from the next generation Hoosier educators scholarship fund to individuals enrolled in a transition to teaching program may not exceed $1,000,000. Requires that an awarded scholarship must be repaid under certain conditions.

Amends the definition of "emergency medical services provider" for the offense of battery to include a staff member in the emergency department of a hospital. Specifies that the enhancement for battery committed on a public safety official does not apply if the person who commits the offense is detained or committed under the involuntary commitment statute. Provides that the employee of a court or law enforcement agency who warns the subject of a warrant of the existence of the warrant with the intent to interfere with the execution of the warrant commits obstruction of justice. Adds "fondling" to the crime of sexual misconduct with a service provider.

Exempts military pay for members of a reserve component of the armed forces of the United States or the national guard from the individual income tax. (Current law provides an individual income tax exemption for members of a reserve component of the armed forces of the United States or the national guard for the period the member is mobilized and deployed.) Exempts military pay earned by members of an active component of the armed forces of the United States from the individual income tax. (Current law exempts from the individual income tax the military pay earned by members of the National Guard and reserve components of the armed forces of the United States while serving on active duty.)