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Weekly Statehouse update: DEI ban, more income tax cuts, physician non-compete bill

By Brandon Smith

Posted January 24, 2025

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The eastern exterior of the Indiana Statehouse, at night.

The 2025 session of the Indiana General Assembly must finish by April 29. (Brandon Smith/IPB News)

A Senate committee advances a bill banning diversity, equity and inclusion. Legislation heads to the Senate floor to continue cutting the state individual income tax rate. And a measure banning non-compete clauses for physicians clears a committee.

Here’s what you might have missed this week at the Statehouse.

SB 235: Limitations on diversity, equity and inclusion

Diversity, equity and inclusion would be banned in state agencies, educational institutions and any organization that receives money from the state under a bill approved by a Senate committee. Under SB 235, DEI’s definition includes social justice, systemic oppression and antiracism. And it bans taking positions on those issues. It also limits training related to race, sex, color, ethnicity, gender identity or sexual orientation.

SB 451: Income tax rate

Indiana is in the middle of a five-year reduction of its individual income tax rate.

SB 451 would continue lowering the rate by 0.5 percent every even-numbered year — but only if state revenues grew by at least 3 percent the previous even-numbered year.

Join the conversation and sign up for our weekly text group: the Indiana Two-Way. Your comments and questions help us find the answers you need on statewide issues, including our project Civically, Indiana and our 2025 bill tracker.

SB 475: Physician noncompete agreements

New legislation, SB 475, would fully ban non-compete clauses for all physicians. Noncompete agreements often prohibit workers from leaving a job and taking another in the same industry.

Current law bans it for primary care doctors.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.