Statehouse Update 3
Introduction
The Indiana General Assembly continued its focus on committee activities and saw an uptick on second and third readings of bills during the third week of the 2025 Legislative Session. The State Budget, introduced as HB 1001, has been referred to the House Ways and Means Committee to begin the legislative process. The current total of bills for this session remains nearly 1,300, of which our office is monitoring over 250 bills that could have an impact on University operations.
Below is a list of bills being tracked by Ball State Governmental Relations that have been either introduced or moved during the last week. If you have questions about these or other bills that you may have heard about, please contact the Office of Governmental Relations at gov@bsu.edu.
Introduced Bills
House Bills (HB)
HB 1001 – State Budget: 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. Repeals a provision allowing the department of administration to enter into a lease with the Indiana historical society (society) for use of a building. Requires the director of the budget agency to make a written determination that funds are not appropriated or otherwise available to support continuation of the performance of any contract or lease with the society. Establishes the primary care access revolving fund for the purpose of making loans to primary care medical practices in Indiana. Requires that the salary matrix for state police, capitol police officers, and department of natural resources law enforcement officers be adjusted each time an adjustment is made to a pay plan for state employees in the executive branch. Provides a sales and use tax exemption period for three days in January and in August of each year for the following items: (1) School supplies. (2) Clothing, including shoes. (3) Computers and computer accessories. (4) Learning aids. (5) Sports and recreational equipment to be used by an individual who is not more than 18 years of age. Provides a sales and use tax exemption period for seven days in May of each year for the following items: (1) Bicycles and accessories. (2) Fishing supplies. (3) Hiking supplies. (4) Hunting supplies. Requires the department of state revenue to calculate an annual adjusted gross income tax exemption index factor to be used in determining certain exemption amounts for purposes of calculating an individual's adjusted gross income each taxable year. Provides an adjusted gross income tax deduction for retirement benefits, phased in over four years. Exempts tips received by an individual employed in a service-providing industry occupation from the adjusted gross income tax. Increases the: (1) employee threshold; and (2) maximum amount of tax credits that may be granted in a year; for purposes of the health reimbursement arrangement income tax credit. Establishes a state tax credit for certain capital investments made in rural funds (rural fund credit). Prescribes requirements for the rural fund credit. Provides an adjusted gross income tax credit for retired farmers who sell or lease farmland or sell livestock to a qualified beginning farmer. Requires the treasurer of state to establish a long term care savings account program that allows an individual to save for long term care expenses. Provides an adjusted gross income tax deduction for contributions made to an individual's long term care savings account during a taxable year. Provides an adjusted gross income tax deduction for long term care insurance premiums paid during the taxable year. Requires the treasurer of state to establish a farm savings account program that allows an individual to save for farming related expenses. Provides an adjusted gross income tax deduction for contributions made to an individual's farm savings account during a taxable year. Establishes the local child care assistance program for the purpose of providing a county with assistance in expanding the availability of child care in the county, including by providing matching grants. Extends the sunset of the collection of hospital assessment fees and health facility quality assessment fees from June 30, 2025, to June 30, 2027. Removes the annual income maximum for choice scholarship eligibility and eligibility for the education scholarship account. Provides that an individual may continue to participate in the career scholarship program after graduating, receiving an Indiana high school equivalency diploma, or obtaining a certificate of completion if the individual: (1) participated in the career scholarship program or the education savings account program while enrolled in grade 10, 11, or 12 in Indiana; (2) was a student with a disability at the time the account was established who required special education and for whom an individualized education program, a service plan, or a choice special education plan was developed; and (3) is less than 22 years of age. Establishes the Hoosier workforce upskill program to provide grants to eligible employers for reimbursement of training expenses. Establishes the public prosecution fund to provide county reimbursement of compensation paid to deputy prosecuting attorneys and other administrative expenses. Provides that unexpended and unencumbered amounts appropriated from the federal economic stimulus fund in P.L.165-2021 do not revert to the state general fund. Requires the state comptroller to transfer: (1) $15,000,000 from the addiction services fund; and (2) $25,000,000 from the department of insurance fund; to the tobacco master settlement agreement fund on July 1, 2025.
Bills That Moved
House Bills (HB)
HB 1002 – Various Education Matters: Removes and repeals various education provisions and expired education provisions. Merges and amends provisions regarding fund distribution upon the termination of a charter and the cessation of a charter school. Amends the age eligibility for a member of a governing body. Establishes information that must be included in a consolidated audit by an organizer. Provides adult high schools are excluded from all cohort based graduation rate calculations except to the extent required under federal law. Amends the termination and notice requirements with regard to terminating a transportation program. Relocates a provision regarding trauma informed classroom instruction curriculum in teacher preparation programs. Provides that a provision that decreases state tuition support for failure to meet student instructional day. This bill passed out of the House Committee on Education (Yeas: 7, Nays: 4).
HB 1348 – Nonaccredited Nonpublic Schools: Provides that a high school diploma (diploma) or credential issued by a nonaccredited nonpublic school (school) is legally sufficient to demonstrate that the recipient of the diploma or credential has met the requirements to complete high school. Provides that a state or local agency or institution of higher education in Indiana may not reject or otherwise treat a person differently based solely on the source of a diploma or credential. Provides that a person who administers a school has the authority to execute any document required by law, rule, regulation, or policy to provide certain evidence regarding a child's education. This bill passed out of the House Committee on Education (Yeas: 9, Nays: 4).
HB 1484 – State Educational Institution Prohibitions: Prohibits state educational institutions from using certain institution funds to finance a speaker series. This bill is referred to the House Committee on Education.
HB 1634 – Math Education: Requires each school corporation and charter middle school to automatically enroll a student who meets certain conditions in a middle school advanced math course. Allows a parent of a student to opt out of automatic enrollment. Allows a parent of a student who does not meet the conditions for automatic enrollment to opt the student into a middle school advanced math course. Establishes requirements regarding: (1) mathematics screening, evaluation, and intervention; and (2) teacher preparation program math curriculum and content. This bill is referred to the House Committee on Education.
Senate Bills (SB)
SB 74 – Extension of Lifeline Law Immunity: Provides that an individual who is: (1) reasonably believed to be suffering from a health condition which is the direct result of alcohol consumption; and (2) assisted by a person who requested emergency medical assistance for the individual; is immune from prosecution for certain crimes. This bill passed the Senate Committee on Corrections and Criminal Law (Yeas: 9, Nays: 0) and received a second reading on the Senate floor.
SB 146 – Teacher Compensation: Requires the department of education to submit a report to the general assembly before November 1, 2025, that provides an analysis of the feasibility and cost of increasing school corporation employee health plan options. Creates the Indiana teacher recruitment program and fund. Provides 20 days of paid leave for a full-time teacher employed by a school corporation and 10 days of paid leave for a part-time teacher employed by a school corporation upon: (1) the birth of the teacher's child; (2) the birth of a child to the teacher's spouse; (3) the placement of a child for adoption with the teacher; or (4) the stillbirth of the teacher's child. Removes a prohibition on ranking teacher preparation programs. Beginning June 30, 2025: (1) increases the minimum salary for a teacher employed by a school corporation to $45,000 (current law requires $40,000); and (2) requires a school corporation to expend an amount for teacher compensation that is not less than 65% of state tuition support (current law requires 62%). Changes the name of the "teacher appreciation grant" to the "teacher incentivization grant". Amends the requirements regarding the teacher incentivization grant. Joins the interstate teacher mobility compact. This bill passed out of the Senate Education and Career Development Committee (Yeas: 11, Nays: 0) and is now referred to the Senate Appropriations Committee.
SB 181 – Nurse Training in Trauma Informed Care: Requires the state board of nursing to adopt or amend rules to require trauma informed care training as part of the required curriculum for nursing education programs. This bill passed the Senate Committee on Health and Provider Services and passed a third reading (Yeas: 49, Nays: 0). It will now move to the House for consideration.
SB 235 – Limitations on Diversity, Equity, and Inclusion: Establishes prohibitions and requirements on state agencies, recipients of state contracts or grants, state educational institutions, and health profession licensing boards regarding diversity, equity, and inclusion. Allows the attorney general to bring an action concerning noncompliance against a state educational institution. Establishes: (1) requirements regarding a standardized admissions test; and (2) requirements regarding altering academic standards; for postsecondary educational institutions that offer certain health education programs. This bill passed out of the Senate Committee on Judiciary (Yeas: 8, Nays: 2) and is now eligible for second reading on the Senate floor.
SB 255 – Education Matters: Requires the department of education to grant an initial practitioner license to an individual who: (1) holds a bachelor's degree with a major in any combination of science, technology, engineering, or mathematics; (2) successfully completes a total of at least nine academic credits regarding certain instruction in teaching; and (3) meets other specified requirements. Requires a principal to allow a student who is enrolled in a public secondary school to receive religious instruction for a period or periods that do not exceed the amount of time that is equivalent to attending one elective course at the public secondary school during the week. (Current law provides for a period or periods of not more than 120 minutes in total in any week.) Changes certain requirements regarding the reporting of a bullying "incident" to the reporting of a bullying "investigation". Requires discipline rules to include a provision to make a reasonable attempt to notify both the parent of a targeted student and the parent of an alleged perpetrator that the school is investigating a possible incident of bullying before the end of the calendar day on which the school is made aware of the possible incident of bullying. This bill passed the Senate Committee on Education and Career Development (Yeas: 11, Nays: 0) and is now eligible for second reading on the Senate floor.
SB 289 – Nondiscrimination in Employment and Education: Requires a school corporation, charter school, state agency, and political subdivision to post on its website certain training and curricular materials concerning nondiscrimination, diversity, equity, inclusion, race, ethnicity, sex, and bias. Provides that a school corporation, charter school, state agency, or political subdivision may not: (1) require or otherwise compel a student of the school corporation or charter school or an employee to affirm, adopt, or adhere to certain beliefs or concepts; or (2) use public funds to contract with, hire, or otherwise engage consultants, trainers, or other persons to take certain actions to promote the beliefs or concepts. Provides that a school corporation, charter school, state agency, political subdivision, or an employee of a school corporation, charter school, state agency, or political subdivision may not, in the course or scope of public service or employment, promote, embrace, or endorse stereotypes. Establishes a process for an employee, a parent, or an emancipated student to file a complaint of a violation. Allows the attorney general to file an action for mandate to compel a school corporation, charter school, state agency, or political subdivision to comply with certain requirements. This bill passed out of the Senate Committee on Judiciary (Yeas: 7, Nays: 3) and is now eligible for second reading on the Senate floor.
SB 472 – Cybersecurity: Requires political subdivisions, state agencies, school corporations, and state educational institutions (public entities), with the exception of specified categories of hospitals, to adopt not later than December 31, 2025, a: (1) technology resources policy; and (2) cybersecurity policy; that meet specified requirements. Requires the office of technology (office) to develop: (1) standards and guidelines regarding cybersecurity for use by political subdivisions and state educational institutions; and (2) a uniform cybersecurity policy for use by state agencies. Requires the office to develop, in collaboration with the department of education: (1) a uniform technology resources policy governing use of technology resources by the employees of school corporations; and (2) a uniform cybersecurity policy for use by school corporations. Requires: (1) a public entity to biennially submit to the office the cybersecurity policy adopted by the public entity; and (2) the office to establish a procedure for collecting and maintaining a record of submitted cybersecurity policies. Establishes: (1) the cybersecurity insurance program (program) for the purpose of providing coverage to a participating government entity for losses incurred by the government entity as a result of a cybersecurity incident; and (2) the cybersecurity insurance board (board) to administer the program. Provides that coverage for losses incurred by a participating government entity as a result of a cybersecurity incident are paid under the program from premiums paid into a trust fund by participating government entities. Provides that the board shall contract with cybersecurity professionals who can be dispatched by the board to assist a participating government entity in the event of a cybersecurity incident. Provides that fines recovered by the attorney general for any of the following violations are deposited in the trust fund: (1) Failure of an adult oriented website to implement or properly use a reasonable age verification method. (2) Failure of a data base owner to safeguard personal information of Indiana residents. (3) Failure of a data base owner to disclose or provide notice of a security breach. (4) Violation of consumer data protection law. Makes an appropriation. This bill passed out of the Senate Commerce and Technology Committee (Yeas: 11, Nays: 0) and is now referred to the Senate Appropriations Committee.
Looking Ahead
Next week we can expect the General Assembly to increase committee activity, second and third readings, and passing of bills from one chamber to other. We will continue to monitor important legislation and provide weekly updates.
