2014 indiana legislative update # 9

8/12/2019 2014 Indiana Legislative Update # 9

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Legislative ReportMarch 7, 2014 BOSE PUBLIC AFFAIRS GROUP INSURANCE

BULLETIN XIV, NUMBER 9

In This Issue

General Assembly Overview Unclaimed Life Insurance Benefits IDOI Bill Tax Credits Electronic Delivery of Insurance

Documents

Workers Comp

Useful Links

House Committee Schedule

Senate Committee Schedule

Contact Your Legislator

Indiana Register

Contact Us

111 Monument CircleSuite 2700Indianapolis, IN 46204317-684-5400www.bosepublicaffairs.com

GENERAL ASSEMBLY OVERVIEW

The House and Senate concluded the second half of session this

week. House and Senate leaders were quick to begin assigning

conferees to various conference committees in order to expedite the

conference committee process which must be finished by midnight

on March 14, the statutorysine diedeadline for the 2014 General

Assembly. BPAG professionals covered a variety of conference

committee meetings in order to closely monitor any last-minute

insertions of language into various bills. Conference committees will

continue next week as there are only a few bills remaining which

require major negotiations among legislators. Due to this, legislative

leaders have indicated the potential to adjourn a few days early,

possibly Wednesday of next week.

One such topic that will continue to be discussed is the proposed

reduction of the business personal property tax. The House approved

SB 1this week which now contains a number of provisions related to

tax reduction. The first is a provision that provides a county income

tax council may adopt an ordinance to exempt from property

taxation any new business personal property (other than utility

personal property) that is located in the county. This language issimilar to how the House proposal,HB 1001,began this session.

However, the Senate amended HB 1001 similar to how SB 1 was

originally introduced in that HB 1001 specifies that if the acquisition

cost of a taxpayers business personal property tax in a county is less

than $20,000 for a particular assessment date in 2016 or later, the

taxpayer is exempt from the tax.

Both proposals include similar language referred to as a super-

abatement which allows a designating body to grant a property tax

abatement under the existing abatement laws for new business

personal property that has an acquisition cost of at least $3,000,000.

HB 1001 limits the super-abatement not to exceed 20 years, ratherthan the standard 10 year limit on abatement. SB 1 has a 25 year

limitation.

HB 1001 and SB 1 both phase down the corporate income tax rate

from 6.5% in 2015 to 4.9% in 2021 in HB 1001, and 4.9% in 2022 in SB 1.

Among numerous other tax provisions, there will be a study

committee this summer and next on income tax deductions and

exemptions.

Transportation funding remains at the forefront of various legislative

proposals this session.HB 1002authorizes the State Budget Agency to
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transfer up to $200 million from the Major Moves 2020 Trust Fund to

the Major Moves Construction Fund, which is overseen by the Indiana

Department of Transportation (INDOT). This transfer must take place

prior to July 1, 2014. This funding may be used for any purpose of the

Major Moves Construction Fund, which includes any obligation

incurred by the Indiana Finance Authority, INDOT, or an operator in

connection with the execution and performance of public-private

agreements for tollways or toll roads, for lease payments to the

Indiana Finance Authority, and to fund projects in INDOTs

transportation plan.

Pre-kindergarten remains a top priority of Gov. Pences agenda.

However, the Senate removed the pilot program inHB 1004as it

passed the House and instead inserted language to establish a study

committee on pre-kindergarten and early learning. Concerns about

the cost of such a program led to the creation of the Pre-

Kindergarten and Early Learning Study Commission which must have

a report to the General Assembly before November 1, 2014 and is set

to expire on January 1, 2015. The Governor has been publicly

advocating for the General Assembly to restore the pre-k pilot

program.

A late push to obtain public financing for a proposed soccer stadium

in Indianapolis found the end of the road this week. A proposal was

inserted in the House Ways & Means Committee that called for an

$87 million dollar stadium that would be paid for with a ticket tax and

the capture of sales taxes at the stadium. It was approved by the

House but a number of Senators believe the minor league soccer

team, known as the Indy Eleven, needs to play at least one season

before public financing is potentially approved..

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UNCLAIMED LIFE INSURANCE BENEFITS

SEA 220,authored by Sen. Travis Holdman (R), requires insurers to use

the SSAs Death Master File or a database as inclusive on all in-force

policies, annuity contracts and retained asset accounts to help with

the accurate administration of unclaimed death benefits.

As reported last week, the bill was amended by Rep. Lehman on

second reading in the House to remove the prospective language so

that the bill applies to all in-force policies and contracts. As

amended, the bill passed the House 94-0. This week, Sen. Holdman

concurred with the House changes and the bill passed out of the

Senate 48-1. It is now on its way to the Governor.

IDOI BILLHB 1206,authored by House Insurance Chairman Matt Lehman (R),

does the following: (1) removes a requirement for life insurers to

submit individual investments to the Department of Insurance; (2)

removes a requirement that a foreign or alien insurer submit an
http://iga.in.gov/legislative/2014/bills/house/1004/http://iga.in.gov/legislative/2014/bills/house/1004/http://iga.in.gov/legislative/2014/bills/house/1004/http://www.twitter.com/bosepaghttp://www.twitter.com/bosepaghttp://iga.in.gov/legislative/2014/bills/senate/220/http://iga.in.gov/legislative/2014/bills/senate/220/http://iga.in.gov/legislative/2014/bills/house/1206/http://iga.in.gov/legislative/2014/bills/house/1206/http://iga.in.gov/legislative/2014/bills/house/1206/http://iga.in.gov/legislative/2014/bills/senate/220/http://www.twitter.com/bosepaghttp://iga.in.gov/legislative/2014/bills/house/1004/


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application for admission to do business in Indiana in duplicate; (3)

changes from March 15 to July 1 of each year the due date for

certain insurance holding company filings; (4) adopts ORSA; (5)

repeals a provision requiring the Commissioner to examine and

publish a foreign or alien insurers annual condensed statement of

assets and liabilities; (6) specifies requirements for motor vehicle

service contracts; (7) removes IC 27-1-13-16(c) regarding the

requirement to stamp envelope if residential policy coverage has

been reduced, restricted or removed; and (8) requires a $2,500

registration fee for captive insurers doing business in Indiana.

The bill passed out of the Senate on Tuesday by a vote of 46-2. Upon

its return to the House, Rep. Lehman dissented to possibly fix some

technical issues. The conference committee hearing will occur early

next week.

TAX CREDITS IN CONFERENCECOMMITTEE

SB 367,originally filed as a property tax bill, was amended late in the

Senate committee process and included a sunset on numerous tax

credits; including, a sunset of the following: Indiana Life and Health

Guaranty Association Tax Credit (12/31/17), Indiana Insurance

Guaranty Association Tax Credit (12/31/17) and the Indiana

Comprehensive Health Insurance Association Tax Credit (1/1/17).

The bill was amended in Ways and Means last week and removed all

the tax credit sunsets, including ours. As amended, the bill passed

out of the House 73-24. It is now waiting for dissent or concurrence

from Sen. Hershman.

HB 1020,which also contains a sunset of numerous tax credits

(including the insurance guaranty fund tax credits with a sunset of2020) passed the Senate last week by a vote of 41-8. Rep. Koch (the

author of HB 1020) dissented on the bill and a conference committee

meeting was held yesterday. During the meeting, Rep. Koch

indicated that all of the tax credit sunset language will be removed

from the bill.

Additionally, Sen. Hershman also added the tax credit sunset

language toHB 1266with a sunset date of 2022. That bill passed the

Senate on Tuesday by a vote of 48-1. House author Rep. Leonard

has dissented on the bill and a conference committee is scheduled

for Monday. Stay tuned.

ELECTRONIC DELIVERY OF INSURANCE

NOTICES AND DOCUMENTS

HEA 1058(Rep. Peggy Mayfield) provides for the electronic delivery

of insurance notices and documents instead of other modes of

delivery otherwise required for such notices and documents. The bill

requires a recipient's consent to electronic delivery and a method to

withdraw consent. It also includes provisions regarding electronic
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posting of documents on an insurers website.

The bill passed the Senate on Tuesday 48-0. It now moves to the

Governors office for consideration.

WORKERS COMP

SB 294(an encore to HEA 1320 from last year) contains more

restrictive language relative to repackaged drugs, clarification withrespect to the definition of a medical service provider, prohibits

double billing for implants and allows corporate officers to exempt

themselves from work comp coverage. The bill passed out of the

Senate last week 95-1 and is still waiting for concurrence or dissent

from Sen. Boots.

For more informationTrent Hahn

[email protected]

Mike OBrien

[email protected]

Telephone: 317/684-5400

Fax: 317/684-5432
http://iga.in.gov/legislative/2014/bills/senate/294/http://iga.in.gov/legislative/2014/bills/senate/294/http://iga.in.gov/legislative/2014/bills/senate/294/