Slew of bills dealing with state contracts, health care, casinos and more head to Indiana governor

Yahoo

24-04-2025

Rep. Matt Lehman, R-Berne, sits with his grandson on his lap before session April 23, 2025. (Whitney Downard/Indiana Capital Chronicle)
Among the bills sent to Gov. Mike Braun Wednesday was a Senate Republican priority measure to increase transparency — and scrutiny — around state government contracts.
Sen. Scott Baldwin's Senate Enrolled Act 5 advanced for a final time from both the House and Senate with almost unanimous bipartisan support. Across both chambers, only Rep. Ryan Dvorak, D-South Bend, was opposed.
Included in the final draft of the bill are new rules for contacts awarded by state agencies and offices — including a ban on non-public, no-bid deals — and steeper expectations for vendors paid with taxpayer dollars. It also mandates 'unfilled' government positions be eliminated, and requires state offices to more closely monitor and publicly report on spending, as well as in-flow and out-flow of federal funds.
Last-minute conference committee negotiations carved out exemptions for agreements between the Indiana Department of Correction (DOC) and private employers. Baldwin noted that some 1,300 offenders are currently employed through 13 DOC 'joint ventures' with companies like Cummins, Goodwill, the Indianapolis Motor Speedway and the Indiana Pacers.
'These are very difficult to bid out. They're very specialized, and so we've excluded them for that sole purpose,' the senator said Wednesday morning. All other reporting requirements will still apply, though.
Another exception was made for child support contracting between Indiana's Department of Child Services and local prosecutors.
Certain health care entities will additionally be required to report ownership information to the state as part of a transparency effort to detangle potential conflicts of interest under House Enrolled Act 1666.
It passed the House on a 78-13 vote, with opposition from both Democrats and Republicans. The proposal had an easier journey in the Senate, where it had unanimous support.
Providers like hospitals, insurers, third party administrators and pharmacy benefit managers will need to detail ownership stakes to either the Indiana Department of Health or the Indiana Department of Insurance, depending on their services.
The Secretary of State's Office will also be involved in collecting and reporting data.
Senators urged their House counterparts to exclude owners with less than a 5% interest in the entity at the behest of small-time providers seeking anonymity — particularly dentists, who are no longer impacted by the bill. That language survived conference committee edits.
But House authors disagreed with the Senate's additional confidentiality provisions, though bill does give overseeing agencies some discretion when it comes to public reporting.
'The Senate added so much confidentiality that it was no longer a transparency bill,' author Rep. Julie McGuire, R-Indianapolis, concluded.
The proposal, along with Senate Enrolled Act 118, both head to the governor, who previously signaled his support for such transparency measures.
The latter moved with minimal opposition and would compel certain hospitals and health care providers to provide detailed reporting on their participation in the 340B drug program, which pairs drug manufacturer discounts with hospitals caring for underserved populations.
Some critics say large health systems unfairly profit, prompting additional scrutiny from the state. The initial bill was amended to exclude certain Health Resources and Services Administration grantees.
'When it came back from the House, there was a concern that it may have excluded some hospitals that we wanted to report,' said author Sen. Ed Charbonneau, R-Valparaiso. 'The conference committee report simply clarifies that.'
The Senate approved the measure unanimously but it had two opposing votes in the House.
Legislation to study relocating a poor-performing casino — or adding a new casino — will soon cross Braun's desk, too. Senators on Wednesday concurred with House changes in a 37-11 vote.
Senate Enrolled Act 43 would require the Indiana Gaming Commission to contract out for a study to assess the top two regions, revenue-wise, for a casino license.
Author Sen. Andy Zay, R-Huntington, initially sought to relocate a failing casino operating near the Indiana-Kentucky border to the Fort Wayne area. When that effort failed, Zay overhauled an empty vehicle bill to create the study.
'Destabilizing' Indiana casino relocation study could also recommend new license
During its trip through the House, the legislation was narrowed from three regions, but expanded by striking relocation-specific language. The study would only take place 'subject to available funding,' despite a new November deadline. As he introduced that amendment, Rep. Ethan Manning, R-Logansport, noted 'the biggest hole in the market is northeast Indiana.' He indicated another possibility is Indianapolis.
Sen. Lonnie Randolph, D-East Chicago, said Wednesday that he'd heard a location has been 'earmarked' for Fort Wayne. Zay rejected that.
'Nothing has been earmarked. And that's why we're doing the study, to determine where the best locations might be — independent of any influences,' Zay replied.
Randolph also suggested a set-aside for South Bend, but Zay said the city is 'already under compact' with the Potawatomi tribe and its Four Winds Casino. Senate Enrolled Act 43's text mandates an 'impact assessment of a potential tribal casino in the region' and consideration of the 'impact of a potential tribal casino on revenues.'
Another measure seeking Braun's signature, Senate Enrolled Act 146, will raise minimum public teacher pay to $45,000 and bump the minimum percentage of tuition support that schools must spend on teacher pay.
The bill — part of the governor's priority agenda — passed out of the House a final time in a 90-1 vote, and 47-0 from the Senate.
The average teacher salary in Indiana during the last school year was recorded at $60,557, according to the latest state teacher compensation report. The lowest teacher salary reported was $40,000 — the current state-mandated minimum. The highest was $110,000. Teacher pay is ultimately set by local school districts.
The original Senate bill, authored by Sen. Linda Rogers, would have additionally provided 20 days of parental leave to teachers who have worked for a school district for at least six months.
That provision was ultimately removed, however, due to budget constraints.
'It was for fiscal reasons, not for policy reasons,' said Rogers, R-Granger. 'It's something I'm sure that we all want to work towards, but it is something that in local school corporations, they can still do today as part of the bargaining process. … I just don't think this is the right time. There are a lot of reasons to do it. Unfortunately, dollars play into it, and I'm trying to be cognizant of the budgets of local school corporations.'
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