Indiana Farm Bureau - Public Policy Dispatch

Friday, March 20, 2009

Volume 09, Issue 10

The following county Farm Bureau is scheduled to visit the Statehouse next week.

Tuesday, March 24: Dearborn

SENATE COMMITTEE MOVES BILL TO ADDRESS UNEMPLOYMENT INSURANCE One of the biggest fiscal challenges facing the General Assembly in this full year of fiscal challenges is how to get the state’s unemployment insurance program back on a somewhat sound footing. The program is expected to pay about $1.3 billion in benefits this year but will take in only about $550 million unless changes in the program are made. Toward that end, the Senate Tax & Fiscal Policy Committee has approved, by a vote of 9-3, HB 1379 (Rep. David Niezgodski, D-South Bend, & Sen. Dennis Kruse, R-Auburn). As it passed the House, HB 1379 dealt with defining the classification of workers as employees or contractors in certain situations. The Senate has used this bill as a vehicle to address the unemployment compensation issue. As it was reported by the Tax & Fiscal Policy Committee this week, the bill will increase the premium employers pay into the unemployment compensation fund, reduce the benefits most recipients receive, tighten eligibility requirements to disqualify some seasonal workers and impose a one-time surcharge of 10% on employers and begin to repay the federal government $540 million which the state has borrowed to date to keep the benefits flowing to unemployed Hoosiers. Sen. Kruse hopes to move the bill quickly to a conference committee so that negotiations to come up with a final bill can begin as soon as possible. The House effort to address the unemployment compensation issue during the first half of the session died when Rep. Niezgodski pulled HB 1721 before a vote could be taken on it. Some legislators are already predicting that it will be the unemployment insurance issue, not the budget, that will cause the governor to call a special legislative session this year.

ETHANOL INCENTIVE UPDATE CLEARS SENATE COMMITTEE HB 1398 (Rep. Dale Grubb, D-Covington, & Sen. Beverly Gard, R-Greenfield) was approved by the Senate Environment Committee this week. The bill adds public schools and state universities to the list of public entities that are eligible to participate in the E85 fueling station grant program. It provides that the E85 sales tax deduction applies only to reporting periods beginning on January 1 and ending before April 1. Historically, this is the time of year when the differential between ethanol and petroleum is at its lowest, and the deduction could improve E85’s marketability. In the other months, there is greater demand for fuel and the price of petroleum increases to the point where E85 is competitive without the deduction. The bill also makes some changes in the law regarding the administration of the corn market development program.

HOUSE AG COMMITTEE OKs GOOD CHARACTER BILL The House Agriculture & Rural Affairs Committee has approved SB 221 (Sen. Beverly Gard, R- Greenfield, & Rep. Joe Pearson, D-Hartford City) the bill that would allow the IDEM commissioner to consider the “good character” of applicants for regulated livestock facilities before granting a permit. The purpose of this provision is to prevent individuals with a history of environmental violations from establishing and operating facilities in Indiana. The bill was amended to include a new notice requirement for new or expanded regulated livestock facilities. Under the amended bill, property owners within a half mile of the proposed facility or improvements must be notified. These requirements were agreed upon by Farm Bureau and the state’s livestock organizations. At the hearing, Farm Bureau’s Justin Schneider testified in support of the bill and its amendments.

BILLS FOR PURDUE AG RESPONSIBILITIES MOVING A pair of bills dealing with agricultural activities situated at Purdue University moved comfortably out of committee this week. On Tuesday, the House Agriculture Committee approved SB 271 (Sen. Randy Head, R-Logansport, & Rep. Joe Pearson, D-Hartford City) which will change the procedures to approve a fee increase at the Animal Disease Diagnostic Laboratory. Under the new procedure, a fee increase would be originated by the Board of Animal Health and approved by Purdue’s treasurer; currently BOAH initiates the increase, but it must be approved by the Purdue Board of Trustees. The bill also provides that fees may be used for any purpose except faculty salaries. ADDL Director Steve Hooser explained that fees would probably not be used for staff salaries except in exceptional cases where additional technicians might be needed because of an epidemic or similar situation. Justin Schneider testified in support of the bill for Farm Bureau.

RATE SETTING AUTHORITY FOR STATE EGG BOARD On Wednesday, the Senate Commerce Committee approved HB 1524 (Rep. Terry Goodin, D-Austin, & Sen. Ron Alting, R-Lafayette) a bill that will give rate-setting authority to the State Egg Board. Currently the egg board must periodically come back to the General Assembly for any rate increases. Testifying in support of the bill were egg board Executive Administrator Mark Straw, representatives of the state’s egg industry and Farm Bureau’s Bob Kraft.

TAX RELIEF FOR FLOODED PROPERTY The Senate Appropriations Committee has approved HB 1365 (Rep. Trent VanHaaften, D-Mount Vernon, & Sens. Luke Kenley, R-Noblesville, and Bob Deig, R-Mount Vernon) a bill that will provide property tax relief to the owners of property that has become unusable because of flooding. If enacted, the bill would provide retroactive relief to owners of property flooded during the storms of 2008. Farm Bureau’s Katrina Hall testified in support of the bill, which cleared the committee by a vote of 11-0.

APPROPRIATIONS COMMITTEE CONSIDERS HIGHWAY & ROAD FUNDING The Senate Appropriations Committee also heard HB 1656 (Rep. Terri Austin, D-Anderson, & Sen. Kenley, R-Noblesville) a bill that addresses a number of highway construction issues, but most significantly appropriates money from the major moves construction fund, federal funds and the next generation trust fund for state highway projects listed in the bill and local transportation projects. Katrina Hall testified in support of the bill for Farm Bureau. No vote was taken as committee Chairman Kenley intends to combine a number of bills that make appropriations in the budget bill.

AGRICULTURE CELEBRATED AT STATEHOUSE Tuesday, March 17, was not only St. Patrick’s Day, it was also Ag Day at the Statehouse. A number of the state’s agricultural organizations, including Farm Bureau, participated in a reception sponsored by the Indiana Ag Resource Council in the Statehouse atrium during lunch. That afternoon, both Houses adopted a resolution recognizing the importance of agriculture in the Indiana and national economies for its remarkable ability in providing food, fibers, pharmaceuticals and energy to meet the basic human needs of our society. Farm Bureau was represented at ceremonies in both Houses by Second Vice President Isabella Chism. The Resolution was authored by Sens. Jean Leising (R-Oldenburg); Richard Young (D-Milltown); Johnny Nugent (R-Lawrenceburg); and Jim Lewis (D-Charlestown); and sponsored in the House by Reps. Bob Bischoff (D-Lawrenceburg); Cleo Duncan (R-Greensburg); and Tom Knollman (R-Liberty)