August 27, Top Stories. Indiana Chamber Announces Endorsements for General Election
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1 August 27, 2018 Top Stories Indiana Chamber Announces Endorsements for General Election At the state level, the Indiana Chamber is endorsing the following pro-jobs, pro-economy candidates from both parties. The Chamber s non-partisan political action committee, Indiana Business for a Responsive Government, made the General Assembly endorsement decisions. INDIANA SENATE District 11: Linda Rodgers (Granger) District 14: Sen. Dennis Kruse (Auburn) District 15: Sen. Liz Brown (Fort Wayne) District 17: Sen. Andy Zay (Huntington) District 19: Sen. Travis Holdman (Markle) District 21: Sen. Jim Buck (Kokomo) District 22: Sen. Ron Alting (Lafayette) District 23: Sen. Phil Boots (Crawfordville) District 26: Mike Gaskill (Pendleton) District 27: Sen. Jeff Raatz (Richmond) District 31: Sen. Jim Merritt (Indianapolis) District 38: Sen. Jon Ford (Terre Haute) District 39: Sen. Eric Bassler (Washington) District 41: Sen. Greg Walker (Columbus) District 43: Sen. Chip Perfect (Lawrenceburg) District 45: Chris Garten (Scottsburg) District 46: Sen. Ron Grooms (Jeffersonville) District 47: Sen. Erin Houchin (Salem) District 48: Sen. Mark Messmer (Jasper) INDIANA HOUSE: District 2: Rep. Earl Harris (East Chicago) District 4: Rep. Ed Soliday (Valparaiso) District 5: Rep. Dale DeVon (Granger) District 11: Rep. Michael Aylesworth (Hebron) District 13: Rep. Sharon Negele (Attica) District 15: Rep. Hal Slager (Schererville) District 16: Rep. Doug Gutwein (Francesville) District 17: Rep. Jack Jordan (Bremen) District 18: Rep. David Wolkins (Warsaw) District 19: Rep. Julie Olthoff (Merrillville)
2 District 20: Rep. Jim Pressel (Rolling Prairie) District 21: Rep. Tim Wesco (Osceola) District 23: Ethan Manning (Macy) District 24: Rep. Donna Schaibley (Carmel) District 25: Rep. Don Lehe (Brookston) District 26: Rep. Sally Siegrist (West Lafayette) District 27: Rep. Sheila Klinker (Lafayette) District 28: Rep. Jeff Thompson (Lizton) District 29: Chuck Goodrich (Noblesville) District 31: Rep. Kevin Mahan (Hartford City) District 30: Rep. Mike Karickhoff (Kokomo) District 32: Rep. Tony Cook (Cicero) District 33: J.D. Prescott (Winchester) District 34: Rep. Sue Errington (Muncie) District 36: Rep. Terri Austin (Anderson) District 37: Rep. Todd Huston (Fishers) District 38: Rep. Heath VanNatter (Kokomo) District 39: Rep. Jerry Torr (Carmel) District 40: Rep. Greg Steuerwald (Danville) District 41: Rep. Tim Brown (Crawfordsville) District 42: Rep. Alan Morrison (Terre Haute) District 44: Beau Baird (Greencastle) District 45: Rep. Bruce Borders (Jasonville) District 46: Rep. Robert Heaton (Terre Haute) District 47: Rep. John Young (Franklin) District 48: Rep. Doug Miller (Elkhart) District 50: Rep. Dan Leonard (Huntington) District 51: Rep. Dennis Zent (Angola) District 52: Rep. Ben Smaltz (Auburn) District 53: Rep. Robert Cherry (Greenfield) District 54: Rep. Tom Saunders (Lewisville) District 55: Rep. Cindy Ziemke (Batesville) District 57: Rep. Sean Eberhart (Shelbyville) District 58: Rep. Woody Burton (Whiteland) District 60: Rep. Peggy Mayfield (Martinsville) District 62: Rep. Jeff Ellington (Bloomington) District 63: Rep. Shane Lindhauer (Jasper) District 64: Matt Hostettler (Fort Branch) District 65: Rep. Chris May (Bedford) District 67: Rep. Randy Frye (Greensburg) District 68: Rep. Randy Lyness (West Harrison) District 69: Rep. Jim Lucas (Seymour) District 70: Rep. Karen Engleman (Georgetown) District 71: Matt Owen (Jeffersonville) District 72: Rep. Ed Clere (New Albany) District 73: Rep. Steve Davisson (Salem) District 74: Rep. Steve Bartels (Eckerty) District 75: Rep. Ron Bacon (Chandler) District 76: Rep. Wendy McNamara (Evansville) District 77: Rep. Ryan Hatfield (Evansville) District 78: Rep. Holli Sullivan (Evansville) District 79: Rep. Matt Lehman (Berne) District 80: Rep. Phil GiaQuinta (Fort Wayne)
3 District 81: Rep. Martin Carbaugh (Fort Wayne) District 83: Rep. Chris Judy (Avilla) District 84: Rep. Bob Morris (Fort Wayne) District 85: Rep. Dave Heine (New Haven) District 88: Rep. Brian Bosma (Indianapolis) District 89: Rep. Cindy Kirchhofer (Beech Grove) District 90. Rep. Mike Speedy (Indianapolis) District 91: Rep. Bob Behning (Indianapolis) District 92: Rep. Karlee Macer (Indianapolis) District 93: Rep. Dave Frizzell (Indianapolis) District 97: Rep. Justin Moed (Indianapolis) District 100: Rep. Dan Forestal (Indianapolis) On the federal front, the Indiana Chamber s Congressional Affairs Committee, a nonpartisan group comprised of volunteer business leaders from around the state, has chosen to support: IN-02 Rep. Jackie Walorski IN-03 Rep. Jim Banks IN-04 Jim Baird IN-05 Rep. Susan Brooks IN-06 Greg Pence IN-08 Rep. Larry Bucshon IN-09 Rep. Trey Hollingsworth Resources: Jeff Brantley at (317) or jbrantley@indianachamber.com; Greg Ellis at (317) or gellis@indianachamber.com Smoking Reforms in Spotlight in Interim; Increased Cigarette Tax Most Likely The interim study committees are just getting started in earnest; on Thursday, the Interim Study Committee on Fiscal Policy went through a lengthy agenda. The topic of the fiscal, economic and workforce development impact of Indiana smoking rates was of special interest to the Indiana Chamber. Smoking reform has been a top legislative priority for the past few sessions. Two founding members of the Alliance for a Healthier Indiana kicked off the testimony: Bryan Mills, CEO of Community Health, and Kevin Brinegar, president and CEO of the Indiana Chamber. Among the messages they conveyed: While Indiana is one of the best states to do business, we are at the bottom when it comes to health care costs and health rankings. Indiana ranks 41st in percentage of smokers and the costs associated with smoking. These consistently poor health metrics undermine our progress as a state. Statistics show that significantly raising the cigarette tax and increasing the smoking age from 18 to 21 will reduce smoking and make a difference. Action should be taken in the 2019 Legislature. Brinegar specifically noted: Currently, revenue from the state s 99.5 cent per pack cigarette tax does not even raise enough money to cover the additional cost to the Medicaid program for individuals with smoking-related diseases.
4 Raising the cigarette tax by $1.50 per pack will create a much higher barrier of entry for young people and prevent many of them from starting to smoke, not to mention being an incentive to quit for others. Smoking in the workplace costs Hoosier employers $6.2 BILLION per year in additional health costs, absenteeism and lost productivity. That money could be used to provide higher wages and benefits, additional training and much more. Health care costs for smokers in the workplace average 40% higher than nonsmokers. Also, smokers take the equivalent of an additional three weeks of vacation per year in the form of smoke breaks during the workday. John Thompson, CEO of Thompson Distribution Company and an Indiana Chamber executive committee member, provided an example of an employee that contracted lung cancer from smoking and the impact that it had on the life of that employee and the costs to the business. The opposition focused on the loss of revenue from cross border sales and Indiana s current market advantage because its cigarette tax is less than surrounding states. An increase in the cigarette tax would eliminate that positive revenue flow. Meanwhile, data provided to the committee by the Legislative Services Agency makes a strong case for raising the tax. The last cigarette tax rate increase was in 2008, when the tax went from $0.555 to $0.995 per pack. That increase resulted in a decrease in demand (lower number of packs sold), but the revenue from the tax grew in FY 2008 over FY Because of the increased tax, consumption has been declining since FY And while the revenue from the tax has been declining as well, at a rate a little more than 2% per year since 2008, the amount of revenue generated from the cigarette tax in FY 2018 is still greater than the amount of revenue generated in FY 2007 before the increased tax was implemented. The current cigarette and tobacco tax generated over $418 million in FY Over half of that revenue goes to the state s general fund and more than a fourth of it goes to the Healthy Indiana Plan Trust Fund. It is estimated that an increase of $1.50 per pack after calculating the reduced demand will generate additional revenue somewhere north of $300 million. And while the Alliance for a Healthier Indiana would like that revenue mostly to be used for health purposes, that number will likely get the attention of legislators who may be looking for additional sources of revenue for other policies. No action was taken by the committee, and the Chamber doesn t expect a recommendation to the Legislature either for or against a tax rather just a report on what information was provided. Both sides of the argument weren t showing all their cards and will gear up for a repeat performance during the 2019 legislative session. Whether next year will be the year for increasing the smoking age is uncertain but an increase in the cigarette tax would appear to be a possibility. Resource: Mike Ripley at (317) or mripley@indianachamber.com Senate Majority Leader McConnell Featured Speaker at Indiana Chamber s D.C. Fly-in One of the Indiana Chamber s annual marquee policy events is the D.C. Fly-in on September The gathering traditionally draws 100 business and community leaders from throughout the state to travel to Washington, D.C.
5 Senate Majority Leader Mitch McConnell of Kentucky will be the featured speaker at the dinner on day one. McConnell is expected to offer insights on policy, working with the Trump administration and the midterm election outlook for the Senate. The U.S. Chamber of Commerce will also provide an overall election preview. Proceedings kick off with legislative briefings conducted by members of Indiana s delegation. Confirmed presenters and topics include Congressman Jim Banks (IN-03) on immigration and Congresswoman Jackie Walorski (IN-02) on trade and tariffs. Several members of the Indiana delegation are scheduled to host their fellow Hoosiers and sit at their tables for dinner. At the end of the evening, a cocktail reception awaits at the official hotel: the Hyatt Regency Washington on Capitol Hill. On day two, Canada s deputy ambassador to the United States, Kirsten Hillman, highlights the breakfast program, which will be held at the AT&T Forum. The event concludes with scheduled visits to the Indiana congressional offices. The registration cost is $199 per person, with group discounts available. Register online at or call (800) Attendees are responsible for their own travel and hotel arrangements. D.C. Fly-in sponsors helping make the event possible are: Zimmer Biomet (dinner), Smithville (legislative briefing), Build Indiana Council (cocktail reception), AT&T, Duke Energy, The Kroger Co., Old National Bank, TRISTAR and Wabash Valley Power. Resource: Greg Ellis at (317) or gellis@indianachamber.com IN OTHER NEWS Taxation A Look at New Sec. 199A Deduction for Qualified Business Income Do you qualify for the new 20% deduction for pass-through entities (S corps, LLCs, partnerships, sole proprietors)? Yes, no, partially, not sure yet all possible answers. It turns out that this determination will depend on several things and may be anything but simple. But there are a few substantial factors: (1) how is the income derived, i.e. is it from investments (capital gains, dividends, interest); (2) how much non-investment income did you make from the business, over and above a reasonable compensation/salary level; and (3) if you file a joint return and make more than $315,000 ($157,500 for individuals), what type of business do you own or have a share in? If you re under the $315,000/$157,500 threshold, business type doesn t matter. If over $315,000/$157,500, but under $415,000 (or $207,500 for individuals), the deduction is limited for most service-based businesses industries, (e.g. health care, law, accounting, consulting and financial management). However, there are a couple big carveouts: engineering and architecture. Furthermore, once your income crosses the $315,000/$157,500-line, additional limitations apply. Now, if your taxable Income exceeds $415,000 (or $207,500 for individuals), the deduction is limited to the greater of: 50% of your share of W-2 wages expense or 25% of your W-2 share, plus 2.5% of your interest in the business fixed assets.
6 This is the basic description of what we know now about how the simple new deduction will be applied; yes, simple may be a misnomer. Of course, there are many, many more details regarding how all this will work, and many yet unanswered questions about how it is to be applied. At least the IRS is trying to make things easier. Earlier this month, the government agency published an introduction statement ( and 184 pages of proposed rules for applying the deduction ( Still, the best course may be to call your accountant (and probably attorney as well) to get an expert opinion on what you are really looking at. Resource: Bill Waltz at (317) or bwaltz@indianachamber.com Health Care Chamber Supported Nurse Licensure Compact Has Positive Committee Discussion The Interim Study Committee on Public Health, Behavioral Health and Human Services met for the first time late last week. The committee took testimony on the impact that joining the Nurse Licensure Compact (NLC) would have on the delivery of nursing services to the residents of Indiana. The Compact would allow nurses in border/regional communities to practice across state lines without the financial and regulatory burden of two state licenses. Representative Ed Clere (New Albany) testified that the NLC was a simple concept that allows nurses to practice in any other compact state subject to state laws of the home state. This is particularly important to border communities like Floyd County, where a nurse might live in Louisville and work in New Albany or vice versa. For proponents, this is both a workforce and quality of care issue. Thirty states have ratified the compact, including Kentucky. The National Council of State Boards of Nursing, Baptist Health Floyd, One Southern Indiana (the local chamber), the Indiana Hospital Association and the coalition of Advanced Practice Nurses in Indiana are all in support of the NLC. The Indiana State Nurses Association testified that it was neutral because it had nurses on both sides. At the request of Indiana Chamber member Hosparus Health, the Chamber previously expressed its support in writing by requesting the Legislative Council to study the issue. Hosparus Health is one of the nation s largest non-profit hospice and palliative care providers, serving counties in Kentucky and Indiana. Like many providers, Hosparus Health has faced staffing barriers due to the shortage of registered nurses and believes the Compact will ease the financial burden of dual licensure for the organization and its practitioners. No action was taken by the committee, but the Indiana Chamber is hopeful this matter will come to a positive resolution in the upcoming General Assembly and will be advocating for that to happen. Resource: Mike Ripley at (317) or mripley@indianachamber.com Chamber Announcements Jason Bearce Named New VP for Education and Workforce Development Jason Bearce is the Indiana Chamber s new vice president of education and workforce development. Bearce has spent his nearly 20-year professional career with the Indiana Department of Education and Indiana Commission for Higher Education (CHE), most recently serving as the senior associate commissioner at CHE. Bearce officially joins the Indiana Chamber on September 10. His duties will include lobbying on state
7 education and workforce policy, coordinating the Indiana Chamber s newly-created Institute for Workforce Excellence and serving as the management liaison with the board of Indiana INTERNnet, the statewide resource for internship opportunities. Jason brings a wealth of policy experience in both K-12 and post-secondary education, and will be able to hit the ground running on many initiatives for us, offers Indiana Chamber President and CEO Kevin Brinegar. That s a big plus because Outstanding Talent is the top driver in our organization s Indiana Vision 2025 plan. Having a qualified workforce is both the greatest challenge for our state and the area of most importance. The Chamber has worked with Jason on a number of key policies and programs, including when he was the staff liaison for Indiana s Education Roundtable. I ve always been impressed by his knowledge and ability to communicate effectively. He is highly regarded in the Statehouse and in education circles across the state, and we are excited to have him on the Indiana Chamber team. Bearce has contributed to significant education policy changes during his career, including establishing high school graduation pathways aligned with the state s workforce needs, reforming Indiana s 21st Century Scholars program to increase college completion and career readiness, and launching Governor Holcomb s Next Level Jobs initiative. Bearce earned a bachelor s degree from Purdue University and his MBA from WGU Indiana. His involvement in the community has included serving as the board president for an Indianapolis charter school and a mentor through Starfish Initiative. Good education and workforce policy moves our state forward, helping young Hoosiers find their career path and ensuring adults have the skills needed for today s jobs, Bearce says. I m passionate about education and look forward to representing the interests of the state s business community on behalf of the Indiana Chamber. Resource: Kevin Brinegar at (317) or kbrinegar@indianachamber.com Apply Now for Best Places to Work in Indiana Program Companies with an Indiana presence can now apply for the Indiana Chamber s annual Best Places to Work in Indiana program. In its 14th year, this program honors top companies in the state as determined through employer reports and comprehensive employee surveys. Companies need to have at least 15 Hoosier employees to be eligible. Out-of-state parent companies are also eligible to participate if at least 15 full-time employees are in Indiana. Winners are selected in four groups: small companies of between 15 and 74 U.S. employees; medium companies of between 75 and 249 U.S. employees; large companies of between 250 and 999 U.S. employees; and major companies with 1,000 or more U.S. employees. The application deadline is Friday, November 16. To apply, visit Employers complete a questionnaire and employees fill out an anonymous engagement and satisfaction survey. All companies that apply will receive a thorough report analyzing strengths and opportunities for improvement in their workplace culture.
8 The Best Companies Group, which oversees similar programs in other states and large cities, is responsible for the selection process. The selected companies will be honored on Tuesday, April 30, 2019, at the Best Places to Work awards dinner at the Indiana Convention Center in downtown Indianapolis. Winners will also be recognized via a special supplement to the Indiana Chamber s bimonthly BizVoice magazine and through Inside INdiana Business with Gerry Dick both of which reach statewide audiences. Program partners with the Indiana Chamber and BizVoice are Inside INdiana Business with Gerry Dick, the Best Companies Group, HR Indiana SHRM and Wellness Council of Indiana. The Best Places to Work in Indiana dinner sponsor is Ivy Tech Community College; platinum sponsor is Moser Consulting; silver sponsors are Human Capital Concepts and Smithville. Additional sponsorships are available by contacting Tim Brewer at tbrewer@indianachamber.com or call (317) Top Best Places to Work in Indiana winners for 2018 in the small, medium, large and major categories were: Bloomington-based Hanapin Marketing; technology consulting firm E-gineering of Indianapolis; Blue 449, an Indianapolis-based open source media company; and investment firm Edward Jones, with branch offices throughout the state. Federal Relations EPA Issues New Rule to Replace Clean Power Plan The Environmental Protection Agency (EPA) has released the long-awaited replacement to the Obama administration s Clean Power Plan (CPP). The Indiana Chamber has been a staunch advocate for repeal of the CPP, which mandated a cut in the entire power sector s emissions, and had made that request to the Trump administration. At the heart of the problem with the CPP: It would dramatically increase energy prices for business and residential consumers with minimal improvement in air quality. The new, more reasonable Affordable Clean Energy (ACE) rule provides a good blueprint of where the EPA is now headed. The Global Energy Institute at the U.S. Chamber of Commerce offers an informed breakdown of the proposed rule and stresses seven ways the ACE is better than CPP: 1. EPA doesn t stray beyond the bounds of the Clean Air Act 2. States are truly in the driver s seat 3. Flexibility isn t just a tagline 4. New Source Review program is addressed 5. Remaining useful life considerations are permitted 6. Emissions will continue to decline 7. Vastly improved regulatory process Full details of the Global Energy Institute s analysis are available at Resource: Greg Ellis at (317) or gellis@indianachamber.com
9 Federal Relations: Young: U.S. Must Respond Strategically to China s Economic Aggression; Donnelly Pushes Bipartisan Appropriations Measure Last week, U.S. Senator Todd Young highlighted the dangers of China economic practices. Young, a member of the Senate Foreign Relations Committee, is leading bipartisan efforts to require a National Economic Security Strategy ( Our national security rests on an economic foundation, and predatory economic practices by China have undermined that foundation for years leaving Hoosiers and all Americans dangerously exposed, Senator Young wrote. I applaud the Trump administration for highlighting China s economic aggression and the need to respond. Now, it is time to develop and implement a National Economic Security Strategy that focuses on China s predatory economic practices and protects the prosperity and security of Americans. Leading experts and policymakers have endorsed Senator Young s bipartisan legislation. Read Young full op-ed at Senator Young chaired a hearing of the Senate Foreign Relations Committee during which five nominees were considered for confirmation, including Kip Tom of Leesburg, an Indiana Chamber board member. Tom is nominated to be Ambassador and U.S. Representative to the United Nations Agencies for Food and Agriculture. Both Young ( and Sen. Joe Donnelly ( spoke in support of Tom s nomination. On Thursday, Sen. Donnelly helped the Senate pass a bipartisan appropriations bill that would fund multiple federal agencies, including the Department of Labor and the Department of Health and Human Services. The bill includes Donnelly s bipartisan amendment that he introduced with Senator Mike Crapo (ID), which would provide $1 million in funding for implementation of Trevor s Law. Donnelly has been pressing the Trump administration to fully implement Trevor s Law as it could be valuable in investigating potential cancer clusters in communities such as Franklin in Johnson County. Also, the bill would double the current level of funding for the Centers for Disease Control and Prevention s efforts to reduce childhood lead poisoning, which could benefit communities like East Chicago that have been impacted by lead contamination. The funding would help in efforts to lower children s blood lead levels, preventing future harm. It would help educate health care providers and the public about lead poisoning, monitor childhood blood lead levels and provide funding to states for childhood lead poisoning prevention initiatives. Resource: Greg Ellis at (317) or gellis@indianachamber.com
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