Big I Indiana: Weekly Legislative Update - February 26, 2025
We have officially completed the first half of the 2025 Indiana Legislative Session! All legislation has either been passed on a third reading vote in its chamber of origin or is now considered to be dead and no longer eligible for passage.
For those keeping tabs at home, the House passed 178 bills and 1 joint resolution while the Senate passed 156 bills and 2 joint resolutions (for an overall 27% pass rate). Legislators have returned to their districts for a week of rest and will return on Monday, March 3rd to continue the legislative process. Once the bills have switched chambers, legislators in the receiving chamber act as “sponsors” (rather than authors) for legislation arriving from the other chamber. The sponsor acts on behalf of the author to get the legislation passed by their chamber.
Below, you’ll find a recap of some of the major bills that saw movement in the first half of this session, as well as an overview of a few that did not survive.
Indiana Senate Priority Legislation First Half Recap
On the first day of this year’s session, Indiana Senate Republicans revealed an agenda that prioritized property tax reform, restraining Medicaid costs, lowering health care costs, responsible management of water resources and fiscal integrity and contract accountability. These priorities were filed as Senate Bills 1 through 5.
SB 1, Property tax relief (Sen. Travis Holdman R-Markle) is an extensive, 91-page bill that seeks to reform property taxes. In its current form, SB 1 will allow counties to create a program that lets eligible homeowners defer up to $10,000 in property taxes. It also modifies property tax growth limits, adjusts tax deductions for seniors, veterans and expands a tax credit for first time homebuyers. Additionally, it changes how referendums on tax increases can be placed on ballots, restricts bond issuances, and establishes a property tax portal for taxpayers to compare potential tax changes. This bill includes language from Introduced SB 6, SB 8 and SB 9. It passed the Senate with a vote of 37 to 10 and will be sponsored in the House by Rep. Jeff Thompson (R-Lizton), Rep. Craig Snow (R-Warsaw) and Rep. Jack Jordan (R-Bremen). Notably, Governor Braun has shown his displeasure with the changes the Senate made to the original version of the bill (which was Gov. Braun’s version of property tax relief). The governor has indicated that if additional relief is not added to SB 1 in the second half of the legislative session, he may use his veto power to attempt to bring legislators back to the drawing board.
SB 2, Medicaid matters (Sen. Ryan Mishler, R-Mishawaka) seeks to improve controls on Medicaid eligibility in the Healthy Indiana Plan (HIP), Indiana’s alternative to Medicaid expansion. SB 2 requires that the Office of the Secretary of Family and Social Services report Medicaid data to oversight committees and enforce a five-year lookback period. It prohibits marketing the Medicaid program, mandates eligibility redeterminations using federal and state data, introduces a part time work requirement for eligibility (with notable exceptions), and sets performance standards for hospitals handling presumptive eligibility. It also outlines corrective actions for hospitals failing to meet standards and specifies rules for the Healthy Indiana Plan. This bill passed the Senate 40 to 9 and will be sponsored by Rep. Brad Barrett (R-Richmond) and Rep. Jeff Thompson (R-Lizton) in the House.
SB 3, Fiduciary duty in health plan administration (Sen. Justin Busch, R-Fort Wayne) seeks to require that health plan intermediaries act in the best interests of Hoosier workers. The bill provides that a third-party administrator, pharmacy benefit manager, employee benefit consultant, or insurance producer acting on behalf of a plan sponsor owes a fiduciary duty to the plan sponsor. SB 3 passed the Senate unanimously 47 to 0 and will be sponsored by Representative Martin Carbaugh (R-Fort Wayne).
SB 4, Water matters (Sen. Eric Koch, R-Bedford) prohibits a water utility from building, buying, selling, or easing a long-haul water pipeline without first getting approval from the Indiana Utility Regulatory Commission (IURC). Large water transfers out of a basin or from restricted areas require a permit from the Department of Natural Resources, which will only be granted if the transfer does not deplete water resources and is in the public interest. The department can issue penalties for violations, and permits can be renewed, revoked, or modified as required. This bill passed the Senate without any opposition with a vote of 48 to 0 and will be carried by Representative Ed Soliday (R-Valparaiso) in the House.
SB 5, State fiscal and contracting matters (Sen. Scott Baldwin, R-Noblesville) seeks to improve the State’s fiscal oversight of taxpayer dollars. It allows state agencies to use AI software for budget projections and requires agencies to report new federal funding requests to the budget committee if they involve state fund transfers. Vacant full-time positions must be reviewed after 90 days, contracts must be posted on the Indiana transparency website, and agencies must submit quarterly contract reports. Competitive procurement is required for all state-funded contracts, with existing nonpublic contracts terminating by the end of 2025, and stricter oversight is established for Medicaid financial reporting and trends. This bill passed the Senate unopposed 49 to 0 and will be sponsored in the House by Rep. Matt Lehman (R-Berne) and Rep. Craig Snow (R-Warsaw).
Indiana House of Representatives Priority First Half Recap
Early in the second week of the session, the House Republican caucus also released its agenda, which includes multiple bills focused on fiscal responsibility, reducing government regulations, lowering the cost of living, and strengthening our communities. You can read more about their legislative priorities here.
HB 1001, State Budget (Rep. Jeff Thompson, R-Lizton) was the top priority for the House during the first half of session. HB 1001 received the House Republican Amendment in Ways and Means, which was largely in line with Governor Braun’s proposed budget barring some of the governor’s proposed tax cuts. These items included a 2% increase in K-12 funding annually and the requested funding for the Medicaid forecast. Additionally, the budget expands the Indiana Choice Scholarship Program to all families in the state who wish to participate. The amended budget heard lengthy discussion from both the Republican and Democrat caucuses before ultimately being voted out of the House in a party line 66 to 28 vote. The Senate sponsors for the bill are Sen. Ryan Mishler (R-Mishawaka) and Sen. Chris Garten (R-Charlestown).
HB 1002, Education matters (Rep. Bob Behning, R-Indianapolis) is bill that seeks to clean up education language in Indiana Code, including removing approximately 35,000 words from Title 20. The sweeping deregulation bill targets expired programs that are no longer being funded, as well as removing multiple may provisions throughout the code in an effort to establish more local control. The bill passed out of the House with a 75 to 16 vote. The Senate sponsors for the bill will be Sen. Jeff Raatz (R-Richmond) and Sen. Linda Rogers (R-Granger).
HB 1003, Health matters (Rep. Brad Barrett, R-Richmond) focuses on improving transparency in healthcare pricing and billing. It also gives patients an increased say in their treatment options and gives them easier access to their health data. HB 1003 passed the House by a 66 to 32 vote. As the bill continues through the Senate, it will be sponsored by Sen. Ed Charbonneau (R-Valparaiso) and Sen. Tyler Johnson (R-Leo).
HB 1004, Nonprofit Hospitals (Rep. Martin Carbaugh, R-Fort Wayne) passed out of the House on third reading deadline last week by a vote of 68 to 26. Among its various provisions, HB 1004 will restrict what qualifies as community benefits for certain nonprofit hospitals and will impose stricter reporting and transparency requirements. In addition to this, the bill creates a new excise tax placed on the hospital if their hospital fee exceeds 265% of Medicare. Finally, the bill states that hospitals with commercial prices in excess of 300% of Medicare forfeit their nonprofit status. HB 1004 will be sponsored by Sen. Chris Garten (R-Charlestown), Sen. Justin Busch (R-Fort Wayne), Sen. Tyler Johnson (R-Leo), and Sen. Ed Charbonneau (R-Valparaiso) in the Senate.
HB 1008, Indiana-Illinois boundary adjustment commission (Speaker Todd Huston, R-Fishers) would create the commission to evaluate the possibility of Indiana taking in 33 counties that wish to secede from Illinois rather than the counties forming a new 51st State. The bill, which drew national attention was ultimately voted out of the House with a 69 to 25 vote. Senator Scott Baldwin (R-Noblesville) will be sponsoring the bill in the Senate.
Education Legislation Overview
SB 146, Teacher compensation (Sen. Linda Rogers, R-Granger) is the bill that will increase the minimum salary for a teacher employed by a school corporation to $45,000 (current law requires $40,000). It also increases the required portion of state funding that schools must spend on teacher salaries from 62% to 65% and requires the Department of Education to report on the feasibility and cost of expanding school employee health plan options by November 1, 2025. This bill passed the Senate 50 to 0 and will be sponsored by Representative Jake Teshka (R- North Liberty) in the House.
SB 287, School board matters (Sen. Gary Byrne, R-Byrneville) requires a candidate for school board to declare a political party. Candidates must be nominated like all other elected officials, replacing the current nomination process. It also increases school board member pay from $2,000 to up to 10% of the district’s lowest starting teacher salary. This bill narrowly passed the Senate with a vote of 26 to 20 and will be sponsored by Representative J.D. Prescott (R-Union City).
SB 518, School property taxes (Sen. Linda Rogers, R-Granger) requires that starting in May 2025, school corporations that pass new property tax levies for projects, safety, or operations must share revenue with charter schools in their district. By 2028, all school corporations must also share revenue from their operations fund levy, with a phased-in approach. This bill is highly controversial due to the changes in school funding. SB 518 narrowly passed the Senate 28 to 21 and will be sponsored in the House by Rep. Jeff Thompson (R-Lizton), Rep. Bob Behning (R-Indianapolis), Rep. Andrew Ireland (R-Indianapolis) and Rep. Jake Teshka (R-North Liberty).
HB 1041, Student eligibility in interscholastic sports (Rep. Michelle Davis, R-Whiteland) would prohibit transgender women from participating in women’s sports at the collegiate level. HB 1041 expands on legislation from 2022 that banned participation at the K-12 level. The bill was voted out of the House with a bipartisan 71-25 vote. The bill will be sponsored by Stacey Donato (R-Logansport) in the Senate.
HB 1498, School accountability (Rep. Bob Behning, R-Indianapolis) seeks to improve the system, for measuring and providing ratings to the schools throughout the state to designate their performance. This would end the current practice of assigning an A-F letter grade to schools. The bill received the support of Secretary of Education Katie Jenner who testified and helped present the bill in committee. The bill passed out of the House with a 62 to 28 vote and will be sponsored in the Senate by Sen. Spencer Deery (R-West Lafayette) and Sen. Greg Goode (R-Terre Haute).
Notable Bills that Died
Not every bill makes it through the legislative process – some stall in committees, whilst others fail to garner enough votes to be approved by the full body. Here is a look at some key bills that met their demise in the first half of this session.
SB 201, Closed primary elections (Sen. Mike Gaskill, R-Pendleton) this bill allows individuals to choose a political party affiliation when registering to vote, with a specific question and space on the registration form. Voters must affiliate with a party at least 119 days before a primary election to vote in that party's primary, though exceptions are made for new Indiana residents or young voters reaching voting age. It also allows voters to change party affiliation close to the primary if they move districts and requires provisional voters to declare their party affiliation on an affidavit. This bill was voted out of the Senate Elections Committee, but did not receive a vote on the Senate floor.
SB 284, Early voting (Sen. Gary Byrne, R-Byrneville) would have reduced the period during which in-person absentee voting may occur at the office of the circuit court clerk or a satellite office established by the county election board to a 14-day period ending at noon on the day before election day. Similar to SB 201, this bill was voted out of the Senate Elections Committee, but did not receive a vote on the Senate floor.
HB 1136, School corporation reorganization (Rep. Jake Teshka, R-North Liberty) was assigned to House Education but never received a hearing. This bill ultimately would have dissolved five Indiana school districts, including Indianapolis Public Schools (IPS), turning their schools into charter schools.
HB 1233, Local government reorganization (Rep. Karen Engleman, R-Georgetown) would have dissolved township governments in the state in all counties except for Marion County. Their duties would have been shifted to the county. The bill was assigned to House Local Government but never received a hearing.
HB 1432, Various gaming matters (Rep. Ethan Manning, R-Logansport) was a robust bill that would have authorized iGaming and iLottery, established a new responsible gaming program through the state, and made changes to casino revenue sharing. HB 1432 was amended multiple times, including an amendment to increase the sports wagering tax. The bill was passed out of the House Public Policy Committee but did not receive a hearing in Ways and Means after being recommitted due to its fiscal impact.
Second Half of Session Notes
The House and Senate will both reconvene at 1:30 pm on Monday, March 3 to begin the second half of the 2025 Legislative Session. No committees have been scheduled at this time. Below are a few important dates to be aware of in the coming weeks:
- April 10 - Committee Report Deadline
- April 14 – Second Reading Deadline
- April 15 – Third Reading Deadline
- April 16 – Conference Committees begin
- April 29 – Sine Die (statutory)
The second half of the legislative session, especially the conference committee period, often brings the most significant developments. During a conference committee, bill language can be swiftly added or removed as conferees work to reach an agreement. Typically (not always), only language that previously passed at least one chamber during the same session can be included in the final conference committee report. At this stage, legislation can change drastically—some bills may be entirely rewritten, with their original content replaced, while others may fail due to unresolved differences between the House and Senate version.
We will continue to provide you with the most up-to-date information throughout the second half and recommend that you continue to closely monitor your individual bill tracking lists provided below.
Live Bill Report
2025 Big I Indiana Legislative Bill Track
You can stay up to date on all issues concerning the Big I and insurance industry during the 2025 Indiana General Assembly through the above link. This link is live and will be updated in real-time as the session progresses to include any changes that are made to our followed bills. Our team at Catalyst has created this report uniquely for the Big I Indiana to include the bills that are relevant to you. Each bill's status will automatically update when any new action occurs, including when it becomes scheduled to be heard in a committee. By equipping you with this live and continuously updating report, we will keep you in the loop about every action that impacts our interests.
In-Depth Legislative Update
The bills listed below are those that have been identified as the top priorities for the association for the 2025 Indiana General Assembly. This list will be shorter and differ somewhat from the Bill Track above because these are what we consider bills of most importance to you and your clients. The bills that have the most direct impact on our membership will have more detailed explanations and will list the activity on the bill. The others contain a link that will send you to the Indiana General Assembly website, where you can find more detail on the bill. Finally, when a priority bill changes status, that change will be noted in red type as we move forward through the session.
If you or your staff have any questions about anything in this update, or at any time throughout the 2025 legislative session, please do not hesitate to reach out to Steve Duff at [email protected].