2004 REPORT CARD

Report Card on 2004 Legislative Priorities

ENVIRONMENT

Position 2004 The Chamber opposes implementation of proposed rules by the Indiana State Department of Health setting nitrate standards for septic systems. Additional testing and research is needed to determine problem areas within each county. County government has a responsibility to develop a county sewer and water plan.

Outcome HB 1017 was passed and signed by the governor. This law stalls implementation of restrictive septic system rules until at least 2006. This will allow time for government and business to develop reliable tests of nitrate percolation and design systems that will protect the groundwater.

Position 2003 The Chamber believes that the Air Pollution, Solid and Hazardous Waste, and Water Control environmental boards should not be dependent on the Indiana Department of Environmental Management (IDEM) staff and supports changes in state law that would provide these boards with separate administrative support. This would encourage a proper separation of powers and allow for an independent review process.

Outcome This issue has been resolved with new policies by IDEM and the administration. Governor O’Bannon vetoed HB 1798-03, the “wetlands bill”, but his veto was overridden by the legislature. That bill set some clear environmental standards for wetlands and land development. The agreement on the veto provided additional clarity for wetland regulation in a new bill, HB 1277, which passed.

Economic Development and Local Interest Legislation
HB 1365
• Made permanent research and development tax credits
• Eliminated the sales tax due on complementary hotel rooms
• Extended the Hoosier Business Investment Tax Credit through 2007
• Revised the Community Revitalization Enhancement District (CRED) legislation to allow business relocation into a district under certain procedures -This was requested by South Bend.
• Extended eligibility for EDGE tax credits to LLC’s and LLP’s


Health Care

Position 2004 The Chamber of Commerce of St. Joseph County supports legislation that would allow small business to have the option to purchase a basic health plan with high-deductibles that cover catastrophic illness and injury. These plans might not include all of the state-mandated medical benefits.

Outcome SB 230 was heard in the Senate Health Committee but died on a 5-5 vote with a key vote absent. This issue is sure to be studied over the summer by the legislature and is sure to be introduced again in 2005.


REPEAL THE INVENTORY TAX

Position 1996 The Chamber supports legislation to further reduce or eliminate the negative affects of the inventory tax on business.
Outcome An Indiana Constitutional Amendment will be on a state ballot referendum in the fall 2004 election. The Chamber urges your support for passage.

DAYLIGHT SAVINGS TIME

Position 1994 Statewide observance of Daylight Savings Time
Outcome Was not heard in this session. There still exists considerable disagreement over Eastern or Central time zone designations.

STANDING CHAMBER POSITIONS

Position 2000 Voluntary Annexation
Outcome HB 1005 authorizes a Local Government Efficiency Commission. This is meant to provide local government options for reorganization. The Chamber will study this issue for a 2005 position.

Position 2000 Support for High Speed Rail
Outcome This issue was not discussed in this session. Locally, The Chamber has supported realignment of the South Shore to come directly into the airport from the West. Further travel time to Chicago could be saved with realignment around Michigan City. The Area Plan’s “Economic Development Strategy” suggests that the South Shore be extended into Elkhart County.

EDUCATION, TRAINING, AND WORKFORCE DEVELOPMENT

Position 1997 The Chamber supports the establishment of state tax credits to be applied to business tax liabilities for qualified employer-funded employee training programs and work-based learning initiatives conducted in partnership with local school corporations.

Outcome No tax credit program was considered this session.
Position 2001 The Chamber calls for the State of Indiana to fully fund and mandate compulsory student attendance in half-day kindergarten before advancing with any full-day kindergarten initiatives.

Outcome The House of Representatives passed Governor Kernan’s full-day kindergarten proposal with short term funding. The Senate could not agree on a funding formula to implement any statewide kindergarten program.

UPGRADE OF U.S. 31

Position 2002 The Chamber supports full funding of the upgrade to interstate quality of the U.S. 31 corridor between South Bend and Indianapolis.

Outcome A “Draft Environmental Impact Statement” was approved Feb. 13, 2004. A comment period ends on April 26, 2004. One of the three potential routes will be selected in a final impact statement that then will be submitted to the Federal Highland Administration this summer.

Local Government
2004 Legislative Priorities

Reconfiguring Traffic around The University of Notre Dame

Position 2004 The Chamber of Commerce of St. Joseph County supports reconfiguring the streets around Notre Dame to provide modern arterial roads with adequate capacity and safe turning lanes that will meet projections for long term growth of the county and the university. This plan needs to be carefully studied to provide for accessibility, safety, and design compatibility issues.

Outcome Planning has been ongoing. The issue will come before the County Council in the next few weeks.

BONDING POWER OF MUNICIPAL GOVERNMENTS

Position 2003 The Chamber supports adjusting municipal general obligation bonding limits to allow additional authority which will result in lower financing costs.

Outcome Significant efforts were made to design a loan program for South Bend’s Studebaker/Oliver Community Revitalization District without success. The community needs at least $25 million to clear this site. This issue will continue to be studied for a legislative position in 2005.

Property Tax Relief from Reassessment

Position 2004 The Chamber of Commerce of St. Joseph County supports efforts to mitigate the unique burdens of the reassessment for 2003 and 2004. The reassessment based upon market value should be retained. The state should impose tighter restrictions on annual tax levy increases.

Outcome SB 1 was passed in a special session in the fall of 2003. This allowed homeowners to apply for homestead exemptions after the deadline, reduced some tax penalties, and imposed tighter restrictions on tax levies. HB 1001 provided additional property tax benefits without any major shift of tax burden and maintaining market value assessment.