BizVoice July/August 2017

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18 BizVoice/Indiana Chamber – July/August 2017
Brinegar notes the positive aspect of
having elevated the conversion on this topic,
but in hindsight recognizes the timing
wasn’t ideal.
“Clearly it wasn’t the right year given
that taxes and fees were going to have to be
raised for infrastructure. There were many in
legislative leadership that told us, ‘We can’t
do that in the same year.’ ”
Another rationale for holding off involves
the impact that reworking the federal
Affordable Care Act might have on HIP 2.0,
the Healthy Indiana Plan.
“Including in our conversation with the
Governor, the approach was, ‘Let’s wait and
see what happens, because if the federal share
of funding for HIP goes down to just the
normal Medicaid share, we’re going to have a
$500-million hole and we’re going to need
some tax source to pay for that, and we think
that the cigarette tax might be most
appropriate,’ ” Brinegar shares.
Smith could see that scenario coming to
pass soon.
“Of those four priorities that the Alliance
pushed, the cigarette tax is a very realistic
possibility, I would say, in the next budget
cycle.
“What’s interesting, though, is it isn’t,
in many cases, a public health debate, as
much as the Alliance and others would like it
to be. In many ways, it’s really about the
funding,” he contends.
“I don’t think that’s something Luke Kenley
in particular talked about – why he couldn’t
get it through his caucus; it’s (because) he
really wants to hold onto that for the next
funding crisis that comes down the pike.”
The odds of the other anti-smoking
reforms being adopted aren’t very high,
Smith asserts. Raising the smoking age and
repealing the special privileges of smokers
“stopped where they are likely to stop for a
long time – in the Senate.
“That caucus is more conservative on
issues like that. There is a decent chunk of the
members of that caucus who still don’t think
you should have to wear a seat belt, for
instance. I don’t see that discussion getting
very far in that caucus anytime soon.”
Is water on tap next?
Hopefully a better prognosis awaits
water resources. But it’s tricky. Water is one
of those things that people take for granted;
you expect the water to come out when you
“… it’s not like the tolling could start
tomorrow anyway. It’s going to be five
years before you could even realistically
do it because of everything you have
to go through, … But they might have
to sell it for five years to start getting
people comfortable with the idea.”
– Brandon Smith
Technology Triumphs
Technology impacts our lives more and more each day. And
when looking at business growth and expansion announcements,
it’s evident that the technology ecosystem has taken root and is
growing in Indiana.
That trend wasn’t lost on legislators in 2017, says Bill Soards,
president of AT&T Indiana.
“They are beginning to realize the significance. Historically
we’ve thought of technology and innovation as a segment of our
economy. But increasingly, people are realizing it permeates every aspect of our economy.”
He continues, “It’s smart as a state for us to continue to modernize our regulatory framework
to make sure we’re as welcoming and conducive for technology companies as possible.”
Several new laws will help Indiana along that path.
A potential game-changer is the $250 million Next Level Trust Fund for entrepreneurial
investing – a top objective for Gov. Eric Holcomb that was passed in the state budget.
Soards believes it will be “foundational in giving innovative start-ups the needed capital
to launch their businesses.”
Meanwhile, House Bill 1470 “embraces the power of data and seeks to fuel our
growing economy with data.”
In practicality, it makes the Management Performance Hub (MPH), which was created by
executive order by then-Gov. Mike Pence, permanent and fully funded. The MPH also now
has ownership of all the state’s data. This will benefit Indiana government and taxpayers, as
well as be another tool to assist with start-up companies.
5G technology is the focus of Senate Bill 213.
“There are great advances in wireless broadband that are occurring and the passage of
that bill will make sure Indiana stays on the cutting edge as those services are deployed more
rapidly around the state,” Soards reports.
“Those three pieces of legislation will all be beneficial to helping the state move forward
in this whole arena. All of them equally; they all achieve something different but critical in
moving the state forward.”
Also of note, the Venture Capital Investment (VCI) Tax Credit was made permanent –
though not yet transferable.
Soards, however, feels good progress was made on that front.
“Clearly there was greater recognition than any session we’ve had in the past about the
importance of capital to technology and innovation. That’s why we got the Next Level Trust
Fund. … Making the VCI Tax Credit transferable, I think will happen, but it’s just going to
take a little more education.”
There is no shortage of those willing to help with that, thanks in part to the Indiana
Technology & Innovation Council formed last summer by the Indiana Chamber. Soards is
vice chair of the group’s policy committee and believes the session would not have been
nearly as successful without it.
“A number of these issues have been talked about for years and we’re now seeing an
increased level of awareness and engagement … that Council and deep engagement of its
members made impacts this year that surpassed our expectations.”
Soards also gives kudos to the Governor.
“His embracing of technology and innovation sets the tone for the state. The Legislature
capitalized and enacted several of those ideas, but his leadership, engagement and
willingness to embrace this new economy is significant.”
RESOURCE: Bill Soards, president of AT&T Indiana, at