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JANUARY 30, 2026
The Big Issues

LOCAL GOVERNMENT FINANCE
- HB 1210 is the annual omnibus local government finance bill. It includes a delay to the implementation of the new LIT system to 2029, creates new RFP guidelines for hiring municipal advisors, prohibits local ordinances that restrict rental properties, and many other provisions related to local government finance.
- Aim continues to be focused on adjusting the maximum rates and population parameters in the new LIT system this year to ensure that our members can continue to engage in long-term planning with relatively stable revenue sources, whether or not the effective date needs to be changed to deal with implementation and technical development at the state level.
- Aim opposes the language in HB 1210 that would remove local authority to regulate rental properties, including short-term rentals. Coherent, thoughtful, community planning with robust public input continues to be the loadstone of housing policy among Indiana’s local governments.
- HB 1210, authored by Rep. Craig Snow (R-Warsaw), will be up for a final vote in the House on Monday.

HOUSING
- HB 1001 creates broad new preemptions around local authority to plan and zone housing projects in an attempt to compel higher-density development strategies and lower costs for housing developers. It preempts density, setback, and parking ordinances that will have a wide-ranging impact.
- It also includes new restrictions on impact fees, which are used to defray the infrastructure costs associated with increased residential development in a community without raising taxes on citizens.
- Cities and towns are primary partners and drivers of housing development in the state which has seen a significant uptick since 2020, even in rural areas, due in large part to investments and development-friendly strategies employed by municipalities within their existing authority. Aim opposes large-scale preemption of planning and zoning authority but supports ways that the state, municipalities, and developers can partner to grow and develop our state. We look forward to continuing discussions with the bill author and sponsor to offer proactive solutions that lower housing costs without removing local input.
- HB 1001, authored by Rep. Doug Miller (R-Elkhart) and sponsored by Sen. Chris Garten (R-Charlestown), passed the House with a vote of 76-15.

REMOVAL OF A FISCAL OFFICER
- As introduced, HB 1381 mirrored the current statute allowing counties to petition a court to remove a county-wide elected official from office in the case of a complete abdication of their duties and applied that same process to city and town elected fiscal officers.
- An amendment was added to HB 1381 that would also allow city or town councils to proscribe the duties, hours, and remote work schedules of elected fiscal officers.
- Allowing the removal at all sets a precarious precedent, but forgoing the constitutional separation of powers to put the duties of clerk-treasurers, a separately elected official, into the discretion of a city or town council is significantly concerning.
- HB 1381, authored by Rep. Ben Smaltz (R-Auburn) and sponsored by Sen. Sue Glick (R-LaGrange), passed the House with a vote of 96-0.

MUNICIPAL ELECTIONS
- HB 1055 would give all cities and towns the option to adopt an ordinance that would move municipal elections to the presidential election cycle.
- Aim opposes any attempt to erode the municipal election cycle because holding municipal elections on a separate year from state and national elections ensures that local issues are front and center in those elections and they are not overshadowed by national issues or distorted by straight-ticket votes that are more concerned with up-ballot races.
- HB 1055, authored by Rep. Jennifer Meltzer (R-Shelbyville), will be heard in the Senate Elections committee on Monday.

IMMIGRATION ENFORCEMENT
- SB 76 outlines the way in which local law enforcement interacts with federal immigration enforcement over the course of their regular duties and proscribes their communication and cooperation.
- It also prohibits government units from knowingly employing unauthorized aliens..
- Aim will continue to monitor this bill to ensure it does not interfere with the core public safety mission of municipal police departments while ensuring smooth and effective interactions with federal agencies.
- SB 76, authored by Sen. Liz Brown (R-Fort Wayne) and sponsored by Rep. J.D. Prescott (R-Union City) passed the Senate with a vote of 37-7.
AIM LEGISLATIVE DINNER
The 2026 Aim Legislative Dinner is just around the corner and we look forward to coming together in Indianapolis for this important annual event that brings municipal leaders and state lawmakers together. Aim members and legislators will be seated together according to their legislative district to encourage conversation and connection. We encourage you to please reach out to your legislators and invite them to this essential event.
Presented by Duke Energy, the Aim Legislative Dinner is excited to be joined by this year’s Keynote Speaker, Pete Yonkman, president of Cook Group and Cook Medical in Bloomington, Indiana (home of the CFP National Champion Indiana Hoosiers). Pete is a lifelong Hoosier and is actively involved in community issues, including adult education, workforce development, fostering start-ups, and creating a business culture that supports entrepreneurs. Prepare to be inspired by how we can achieve excellence together in advancing our cities, towns, and state.
Advance registration is required, and the registration deadline is Wednesday, February 4. Onsite registration is not available. Registration is complimentary for Aim Municipal Members and Legislators. The registration fee for Aim Corporate Members is $199. To RSVP, please contact Brendan Bystry at bbystry@aimindiana.org or (317) 237-6200 ext. 249. Please note that hotel rooms at The Westin Indianapolis are currently sold out. For hotel options, please email Lesley Mosier at lmosier@aimindiana.org.
MARKET STREET TO MAIN STREET LEGISLATIVE PODCAST
Listen to more about this week on the sixth episode of the 2026 Market Street to Main Street Podcast Series, Aim’s legislative episodes of the Hometown Innovations Podcast and a supplement to this e-newsletter. In this episode, Jennifer sits down with Matt to go over the latest at the General Assembly as we near the halfway mark of this quick, short Session.
To listen to Market Street to Main Street, please visit The Terminal post and click the “play button” on the audio player. Or you can subscribe to Aim Hometown Innovations Podcast on Podbean, Apple Podcasts, and Spotify.
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