Committee Hearings Continue at the Statehouse

February 5, 2023

Committee action continues at the statehouse with multiple bills followed by AIA Indiana being heard. The deadline for bills to pass out of committee in the House is February 21 and in the Senate February 23. More detailed information is explained below regarding recent AIA Indiana statehouse activity.

HB 1575, residential building commission, authored by Rep. Tim O’Brien (R - Evansville), would create a separate residential building commission within the Department of Homeland Security. The new commission would then have the exclusive jurisdiction for the review and adoption of building codes and standards for the construction of dwellings, which would include houses, townhomes and apartments. If this bill were to pass, Indiana would have two different sets of building codes (residential, building, fire, plumbing, electrical, mechanical, energy conservation, swimming pool and elevator codes), one for residential and one for commercial. AIA Indiana strongly opposes HB 1575.  


AIA Indiana is very supportive of updated building codes for all types of construction. However, HB 1575 is proposing that this commission have a majority of its members be from the home builders and apartment association. This would equate to the fox guarding the hen house, which was built by the fox.  


If HB 1575 as introduced becomes law, class 1 apartments and group homes (R2 and R3 occupancies) would not be regulated under the same code as every other class 1 building. If an architect has a small mixed-use development with office space on the first floor and apartments on the second floor or another part of the first floor, they now would now have to use two different code books to figure out the rules. What if the two code books conflict. Which Commission resolves the conflict? What if it is a really big mixed-use podium project with a parking garage and a restaurant and four stories of apartments above, which code governs the parking garage and restaurant. Is this new commission’s code now going to trump the current code and not require sprinklers in a project like that?

 

AIA’s concern is that the new residential related codes will be written based on construction costs and efficiency and safety and sustainability would take a backseat. Weak building codes result in homes and apartments that cost more to maintain. AIA supports common sense building codes that balance the cost of construction with the cost of maintaining a home.


The bill was assigned to the House Government and Regulatory Reform Committee, which is chaired by a member of the Indiana Builders Association, and has been scheduled for a hearing on Tuesday, February 7, at 10:30 a.m. in room 156-C in the statehouse. HB 1575 is being pushed by the Indiana Apartment Association and the Indiana Builders Association in reaction to the proposed updated electrical code. 


If your state representative serves on the House Government and Regulatory Reform Committee (see the list of committee members below), please reach out to them ASAP and ask them to oppose HB 1575!


Rep. Doug Miller (R - Elkhart)

Rep. Timothy O'Brien (R - Evansville)

Rep. David Abbott (R - Rome City)

Rep. Karen Engleman (R - Georgetown)

Rep. Jack Jordan (R - Bremen)

Rep. Michael Karickhoff (R - Kokomo)

Rep. Joanna King (R - Middlebury)

Rep. Cindy Ledbetter (R - Newburgh)

Rep. Jim Pressel (R - Rolling Prairie)

Rep. Chris Campbell (D - West Lafayette)

Rep. John Bartlett (D - Indianapolis)

Rep. Earl Harris (D - East Chicago)

Rep. Ragen Hatcher (D - Gary) 


Please contact your state representative and ask them to oppose HB 1575!


House of Representatives Phone - 317/232-9600

Email/Find Your Legislator - CLICK HERE

Ron Ross, II, AIA and Jessica Franke, AIA


SB 174, Indiana historic tax credits, authored by Sen. Dan Dernulc (R - Highland) and co-authored by Sen. Justin Busch (R - Fort Wayne), Sen. Travis Holdman (R - Markle), and Sen. David Niezgodski (D - South Bend), was heard in the Senate Appropriations Committee on January 26 but no vote was taken. The bill calls for reinstating the state’s historic preservation tax credit. The bill would allow a credit against a qualified taxpayer's state tax liability in an amount equal of 25% or 30% for a 501(c)(3) of the qualified taxpayer's qualified expenses related to the rehabilitation of a qualified historic structure. Also, the bill as drafted provides that the credit is transferrable and may be carried forward for 10 years, but may not be carried back. AIA Indiana strongly supports SB 174.


AIA Indiana believes these tax credits provide a powerful economic incentive to preserve and redevelop the inventory of historic architecture throughout the state. Historic preservation tax credits reinvigorate blighted areas, create jobs, increase state tax rolls, provide affordable housing, and preserve our state’s architectural treasures. Indiana is one of just 13 states without a historic tax credit program for commercial buildings. 


The chair of the Senate Appropriations Committee, Sen. Ryan Mishler (R - Mishawaka), allowed a hearing on the bill but did not commit to taking a vote. AIA Indiana will continue to lobby in favor of SB 174 and asks that you please contact your state senator and ask them to support SB 174!


State Senate Phone - 800/382-9467

Email/Find Your Legislator - CLICK HERE

SB 333, rules governing certain construction inspections, authored by Sen. Mark Messmer (R - Jasper), would allow the Indiana Fire Prevention & Building Safety Commission to provide rules for construction inspection. SB 333 was heard in the Senate Homeland Security and Transportation Committee on January 24. AIA Indiana Executive Director Jason Shelley, Hon. AIA testified in favor of the bill. No vote was taken. 


The current Indiana Building Code explicitly omits nationally recognized building inspection requirements for “Class 1” structures, creating a great risk to public safety. “Class 1” structures are buildings occupied by the general public and/or three (3) or more tenants. Indiana is one of two states with a statewide building code that currently does not incorporate Chapter 17: Special inspection into its Building Code. The other state is Wisconsin.


The omitted requirements are a critical part of the quality assurance standards of the International Building Code (IBC), the model upon which the Indiana Building Code is based. The purposeful deletion of these inspection requirements has put Indiana out of step with national construction practices and has left Indiana without a defined minimum standard for structural inspection of building construction. 


Benefits of incorporating Special Inspections include: establishment and adherence to a minimum standard for structural inspection would send a strong message that Indiana prioritizes public safety; identification of potentially dangerous structural deficiencies that may otherwise go unnoticed and allow contractors to take timely corrective action; and alignment of Indiana's building code with accepted practices throughout the U.S.


CLICK HERE to access talking points on SB 333. 


Please contact your state senator and ask them to support SB 333.


State Senate Phone - 800/382-9467

Email/Find Your Legislator - CLICK HERE

SB 411, Commercial Property Assessed Clean Energy Program, authored by Sen. Greg Walker (R - Columbus), authorizes counties, cities, and towns to adopt a commercial property assessed clean energy program (C-PACE program) as a financing mechanism to allow commercial property owners to obtain financing for energy efficient improvements, with the repayment of the financing obligation for those improvements made from a voluntary tax assessment (special assessment) on the property. The bill has been assigned to the Senate Tax and Fiscal Policy Committee but has not been schedule for a hearing. AIA Indiana supports SB 411.


The C-PACE model is an innovative mechanism for financing energy efficiency and renewable energy improvements on private property. C-PACE programs allow a property owner to finance the up-front cost of energy or other eligible improvements on a property and then pay the costs back over time through a voluntary assessment. The unique characteristic of C-PACE assessments is that the assessment is attached to the property rather than an individual.


The recent extension of this financing model to energy efficiency and renewable energy allows a property owner to implement improvements without a large up-front cash payment. Property owners that voluntarily choose to participate in a C-PACE program repay their improvement costs over a set time period—typically 10 to 20 years—through property assessments, which are secured by the property itself and paid as an addition to the owners' property tax bills. Nonpayment generally results in the same set of repercussions as the failure to pay any other portion of a property tax bill.


A C-PACE assessment is a debt of property, meaning the debt is tied to the property as opposed to the property owner(s). In turn, the repayment obligation may transfer with property ownership if the buyer agrees to assume the C-PACE obligation and the new first mortgage holder allows the C-PACE obligation to remain on the property. This can address a key disincentive to investing in energy improvements because many property owners are hesitant to make property improvements if they think they may not stay in the property long enough for the resulting savings to cover the upfront costs.


Please contact your state senator and ask them to support SB 411.


State Senate Phone - 800/382-9467

Email/Find Your Legislator - CLICK HERE

SB 335, climate solutions task force, authored by Sen. Shelli Yoder (D - Bloomington), Sen. Ron Alting (R - Lafayette) and Sen. Jon Ford (R - Terre Haute), would establish a climate task force to study and make recommendations on climate and clean energy solutions. This task force would work to reduce Indiana's greenhouse gas emissions, develop a sustainable economy for all, and improve quality of life. 


AIA Indiana supports SB 335, which has been assigned to the Senate Environmental Affairs Committee but it has not been scheduled for a committee hearing as of this time. 


Please contact your state senator and ask them to support SB 335.


State Senate Phone - 800/382-9467

Email/Find Your Legislator - CLICK HERE

Proposed 2023 Indiana Building Code Rulemaking Schedule - The Indiana Fire Prevention and Building Safety Commission is continuing the process of updating Indiana’s outdated building codes. The Commission will be meeting throughout 2023 with a focus on updating the currently adopted I-Codes, considering adoption of the IEBC, IECC and modifications to the GAR. All are welcome to submit proposed amendments to the Model Codes on the Commission’s form, which can be accessed here, and/or testify on proposed amendments to the specific model codes at the scheduled Commission meetings. The next code the Commission will consider is the Plumbing Code. The next Commission meeting date is February 7. Please note, all reviewed model codes are 2021 International Code Council (ICC) model codes (for Plumbing Code: 3rd printing, for all others: printing as of January 1, 2023). The building code update schedule (subject to change depending on number of submitted amendment proposals) is available on the Commission’s website. CLICK HERE to learn more.

AIA Indiana Days at the Statehouse - Support your profession by attending an "AIA Indiana Day at the Statehouse." This is a unique opportunity to learn firsthand about the key AIA state legislative and regulatory issues and become a lobbyist for a day. You will be able to directly impact the legislative process by meeting with your state legislators and discussing the issues important to architects. Current dates available include February 7, 21, 22, and 27. More dates will be scheduled in March and April. The legislative session is scheduled to conclude no later than April 29.


February 22 is AIA Indianapolis Women in Architecture Day at the Statehouse - CLICK HERE to register. All members are welcome to attend.


Please choose a date and RSVP to AIA Indiana Executive Director Jason Shelley, Hon. AIA, jshelley@aiaindiana.org , 317/634-6993. The day will begin at 12 p.m. with lunch and end no later than 3:30 p.m. Attendees will earn 2 AIA LUs! A unified voice is vital. Don't wait to get involved!

(L-R) Ashley Thornberry, AIA and Sen. Aaron Freeman (R - Indianapolis)


Lobbying Basics for Communicating with Your Local Legislators - Please contact your state senator and state representative and introduce yourself, if you don't already know them. Invite them to tour your firm. Discuss with them the issues that are important to you and your firm. I am sure they will appreciate hearing from you.


To contact your legislators, see the information below.


House of Representatives Phone - 317/232-9600

State Senate Phone - 800/382-9467

Find Your Legislator - CLICK HERE


Do not hesitate to contact AIA Indiana Executive Director Jason Shelley, Hon. AIA, jshelley@aiaindiana.org, 317-634-6993, if you have questions or concerns regarding these or any other issues.

AIA Indiana | jshelley@aiaindiana.org | 317-634-6993 | www.aiaindiana.org
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