2012: New laws become effective July 1

The Indiana General Assembly approved 161 new laws this year, many of which will become effective July 1. The changes in state law taking place this summer impact a variety of issues. Read on for a brief summary of some of the new laws taking effect July 1, 2012, and several that are already effective.

To see a complete list of new laws enacted and signed by the governor in 2012, visit the governor’s Bill Watch page. Additionally, the Senate Democrats’ 2012 Session Summary provides a breakdown of each bill approved this year (PDF>>).

Hume reflects on the 2012 legislative session

Sate Sen. Lindel Hume (D-Princeton) reflects on the end of the 2012 legislative session, noting sentencing policy reform and phase-out of the inheritance tax as two key issues addressed by the legislature in the past three months.

2012 Session concludes: Smoking Ban, Funding for Full-day Kindergarten, other key issues pass

The 2012 session of the Indiana General Assembly ended early Saturday morning. With 27 bills already delivered to the governor and signed into law, many more measures were approved on Friday and are now on their way to his office. Read below for highlights of important legislation that came before the 2012 General Assembly:

New Enrolled Acts

RIGHT TO WORK:

House Enrolled Act 1001, the so-called “Right to Work” bill, was approved by the General Assembly early in the 2012 legislative session and signed immediately by the governor. In the Senate, an unorthodox schedule was employed to get the House bill through the chamber. The law bans unions from requiring any employees to pay union fees. Questions were raised regarding the substance and impact of the bill as well as the shortcuts and limited debate by which the legislation was moved through the process. Democrats also contend “Right to Work” states generally pay lower wages and include fewer benefits, affecting all employees in the state and local economies.

HUMAN TRAFFICKING:

Senate Enrolled Act 4 strengthens the state’s human trafficking laws by eliminating loopholes and making it easier to prosecute offenders with the removal of a requirement to prove force or fraud. The legislation also includes a clause that blocks offenders from citing consent as a defense. Penalties are increased with new language geared to protect children specifically, stating that any person who recruits, harbors, or transports a child less than 16 years of age with the intent of engaging the child in forced labor, involuntary servitude, prostitution or sexual conduct commits promotion of human trafficking of a minor, a Class B felony punishable by six to 20 years in prison. Further, the new law makes it illegal for any adult to sell or transfer custody of a child for sexual activity, expanding old law that only applied to a child’s parent, guardian or custodian.

INVESTMENTS WITH IRAN:

The governor signed into law Senate Enrolled Act 231, which limits state dollars from investment activities with Iran. The bill restricts agencies of state government, state educational institutions and political subdivisions from investing with persons or financial institutions that invest in Iran. This legislation also requires the Indiana Department of Administration to make public a list of people who engage in such investment activities. Those companies that find themselves on Indiana’s list will be prohibited from renewing or starting new contracts with any state department.

Enrolled acts; Sent to governor

SMOKING BAN:

House Enrolled Act 1149, the statewide smoking ban, is on its way to the governor for final consideration. The ban would cover most public places, including restaurants, and would permit cities, towns and counties to pass stricter standards. The final version of Indiana’s first statewide smoking ban would exempt bars and taverns, private and fraternal clubs, established cigar and hookah bars and gaming facilities.

Week in Review: Smoking ban progresses and child care ministries’ safety debated

Working through major end-of-session deadlines, state lawmakers have only a few weeks left to conclude business. Numerous bills have passed both chambers without amendments and have advanced to the governor for final review and possible enactment. Negotiations on legislation still under consideration now move to the joint House-Senate conference committee phase where compromises are sought on heavily amended bills. Conference committee reports must be agreed to by all members of the committee and approved by both chambers. Legislators have until midnight March 14 to conclude business, although there is some discussion that they may adjourn early. This brief summary highlights some of the recent action taken by the Senate.

State surplus revenues

Although state spending has been tight throughout the economic downturn, state revenues have begun to improve. The state’s surplus is estimated to be in excess of $1.7 billion by June 30, 2012. In addition, last December the administration found $320 million in electronic corporate income tax payments that had accrued in a state revenue collection account since 2007.  This revenue was not properly transferred to the state’s general fund until this year.

A provision in the state budget passed last year established an automatic taxpayer refund if the state’s combined cash and reserve fund balances exceed 10 percent of the state’s operating appropriation.  The discovery of the $320 million tipped the combined balances over this 10 percent trigger.

Effective January 1, 2013, House Bill (HB) 1376 would change how the state would handle surplus revenue.  The bill would make the trigger for use of excess reserves 14 percent (rather than 10 percent under current law) of general revenue appropriations for the state fiscal year. The proposal also specifies that if the amount of the excess reserves is less than $100 million, all of the excess reserves shall be transferred to the Pension Stabilization Fund; and if the amount of the excess reserves is $100 million or more, 50 percent of the excess reserves shall be transferred to the Pension Stabilization Fund and 50 percent of the excess reserves shall be used for the purposes of providing an automatic taxpayer refund.

In addition, HB 1376 includes additional compensation for victims of last summer’s State Fair tragedy, and additional funding for full-day kindergarten. The bill was approved by the Senate by a vote of 44-6 and now heads to a conference committee where fiscal leaders will iron out differences between the House- and Senate-passed versions of the bill.

Statewide smoking ban

The Senate added numerous amendments to HB 1149, legislation that would establish a statewide smoking ban. Amendments to the bill added to the list of exemptions as to where smokers could light up cigarettes, which weakened the bill considerably. In the bill’s current form, some of the exemptions include: gaming facilities; bars and taverns; cigar and hookah bars; fraternal, social and veterans’ clubs; tobacco stores; bingo parlors; nursing homes and mental health facilities. The Senate approved the bill by a vote of 29-21. The bill’s fate will be decided by a joint House-Senate conference committee. Similar legislation has worked its way through the House for the past five years, but this is the first time the smoking ban has been considered by the full Senate. Indiana is one of 13 states with no comprehensive
smoking ban.