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  • March 04, 2020 4:05 PM | Alan Thorup (Administrator)

    STATEHOUSE SUMMARY

    This past week marked the final week of committee hearings for the 2020 legislative session. A few bills that had passed the first chamber, or chamber of origin, died as a result of inaction by committees. The bills that are still alive must receive a simple majority third reading vote by Tuesday of this week to remain alive. This week also initiates the final element of the session, a process labeled conference committee. This process of reconciliation of changes made to bills by both chambers will be monitored very closely due to the last-minute changes that occur.


    BILLS TO WATCH

    SB 327 – Reporting of Consumer Loans by Unlicensed Lenders

    Sen. Andy Zay (R-Huntington)

    Rep. Martin Carbaugh (R-Fort Wayne)


    Why it matters

    The bill requires the reporting of base-level consumer loan information to a private reporting agency approved by the Department of Financial Institutions under Chapter 7 (the payday lending section of the code). There is currently only one vendor approved by the department under Chapter 7. The requirement would apply to all lenders, both domiciled in state and out-of-state. Per IMBA conversations about the bill, this was an unintended consequence of the drafting of the bill. The IMBA was concerned about the new burdens this bill placed on lenders. Sen. Zay worked with the IMBA to clarify that the bill does not apply to depositories.


    Latest action

    The bill was heard in the House Financial Institutions Committee on Feb. 18 and was not brought back for vote, effectively killing the bill.


    SB 395 – Uniform Consumer Credit Code

    Sen. Eric Bassler (R-Washington)

    Rep. Woody Burton (R-Whiteland)


    Why it matters

    This bill originated from recommendations made by the Financial Institutions Study Committee last summer. The IMBA provided suggested changes to the Uniform Consumer Credit Code for purposes of reforming the antiquated uniform law. The bill was amended in the Senate Insurance and Financial Institutions Committee with several significant changes, however. Most notably, the bill still attempts to fix the problematic refundable calculation of the prepaid/origination fee by establishing a flat origination fee/prepaid finance charge of no more than $75 for a consumer loan under $2,000, $150 for a consumer loan between $2,000 and $4,000, and $250 for a consumer loan over $4,000. The bill also raised the state usury rate from 25% to 36% but was amended to keep the rate at 25%. The bill was amended to remove several provisions about which the IMBA expressed concern, but still contains several items that are in need of additional work. The IMBA is continuing to work on addressing those issues.

    Latest action

    The bill was heard and amended in the House Financial Institutions Committee on Feb. 25. It was passed by the committee 6-3. The bill is now eligible for second reading amendments in the House.


    SB 408 – Various Tax Matters

    Sen. Travis Holdman (R-Markle)

    Rep. Tim Brown (R-Crawfordsville)


    Why it matters

    The bill is the annual Department of Revenue legislation and makes various changes to Indiana’s tax code. Notably, the bill clarifies the treatment of factored receivables under the FIT. The bill was all significantly amended in the House Ways and Means committee. The IMBA monitors this bill every session for changes to Indiana’s tax code as it relates to financial institutions. The IMBA has not identified any concerns with the bill or amendment.

    Latest action

    The bill is currently awaiting possible amendments on second reading in the House.


    HB 1353 – Financial Institutions and Consumer Credit

    Rep. Woody Burton (R-Whiteland)

    Sen. Eric Bassler (R-Washington)

    Why it matters

    The IMBA supports HB 1353, which is the annual bill from the Department of Financial Institutions. Every year, the DFI has an agency bill that cleans up portions of the code that it identifies as needing to be updated. The IMBA has reviewed the bill and supports the changes. There is one section of the bill that the IMBA sought clarification to fix: the issue of which delinquency charge may be assessed. Last session the permissible delinquency charge was set in statute at $25 through the passage of HEA 1136. There was some confusion within contracts whether the delinquency share should be $25 or the former indexed rate according to the Consumer Price Index. The IMBA worked with legislators to clarify this inconsistency.

    Latest action

    The bill was heard and amended in the Senate Insurance and Financial Institutions Committee on Feb. 26. It was passed by the committee 6-0.


  • February 25, 2020 4:04 PM | Alan Thorup (Administrator)

    STATEHOUSE SUMMARY

    This week is the final week for bills to be considered in committees. Bills that are going to be eligible for consideration for the remainder of session must pass the committee they were assigned to by the committee report deadline this Thursday. With the committee process winding down, the focus will shift to considering bills on second and third reading. After this week, there will only be two weeks left to amend and pass any bill that will make it to the Governor’s desk to be signed. With the previous months of work culminating in the final three weeks, the IMBA Legislative Team is staying focused on the remaining key issues that impact our industry. Below are key issues that will see action in the coming weeks.


    BILLS TO WATCH

    SB 50 – Various Trust and Probate Issues

    Sen. Aaron Freeman (R-Indianapolis)
    Rep. Jerry Torr (R-Carmel)

    Why it matters
    SB 50 was refined and crafted during the interim study committee process last summer through committee deliberation and testimony from various industries. The IMBA Legislative Team worked to keep out of the bill a harmful forced foreclosure proposal that would require a mortgage holder to file a foreclosure on a property in probate if the heir to the property requested it. SB 50 also includes provisions that amend the legacy trust statute that was passed into law during the 2019 legislative session. The amendments clarify that only the lender that relied upon the assets listed on a financial statement when extending credit is able to proceed against those assets in the event of a default. Other changes include various changes to trust and probate laws concerning proof of title affidavits, small estate affidavits, execution of a trust by a third party, silent trusts and nonjudicial settlements of accounts.

    Latest action
    The bill is scheduled for a third reading vote in the House today.


    SB 395 – Uniform Consumer Credit Code

    Sen. Eric Bassler (R-Washington)Rep. Woody Burton (R-Whiteland)

    Why it matters
    This bill originated from recommendations made by the Financial Institutions Study Committee last summer. The IMBA provided suggested changes to the Uniform Consumer Credit Code for purposes of reforming the antiquated uniform law. The bill was amended in the Senate Insurance and Financial Institutions Committee with several significant changes, however. Most notably, the bill still attempts to fix the problematic refundable calculation of the prepaid/origination fee by establishing a flat origination fee/prepaid finance charge of no more than $75 for a consumer loan under $2,000, $150 for a consumer loan between $2,000 and $4,000, and $250 for a consumer loan over $4,000. The bill also raised the state usury rate from 25% to 36% but was amended to keep the rate at 25%. The bill was amended to remove several provisions about which the IMBA expressed concern, but still contains several items that are in need of additional work. The IMBA is continuing to work on addressing those issues.

    Latest action
    The bill was heard in the House Financial Institutions Committee on Feb. 18 and was held for further consideration until Feb. 25. The committee will consider amendments to the bill on Feb. 25, and the IMBA Legislative Team will be tracking those amendments very closely.


    HB 1109 – Telephone Solicitation and Consumer Credit
    Rep. Matt Lehman (R-Berne)

    Sen. Greg Walker (R-Columbus)

    Why it matters
    The IMBA supports HB 1109 as this legislation fixes two issues from the passage of last session’s HEA 1123 and HEA 1668. HEA 1123 inadvertently expanded the registration requirement for telephone solicitation to any business in the state of Indiana using the telephone to solicit business. The registration requirement is burdensome and comes with private right of action if not implemented properly. The IMBA sought this clarification to ensure financial institutions are not required to register with the attorney general’s office.

    Additionally, the IMBA worked with lawmakers to amend HB 1109 to fix an issue lenders are dealing with when trying to pull a credit report on a customer and are returned an error message because of misinformation. HEA 1668, which passed in 2019, changed this process and took away the ability from lenders to do their own customer due diligence.

    Latest Action

    The bill is scheduled to be voted on for a final time in the Senate today.


    HB 1191 – Land Contracts

    Rep. Ed Clere (R-New Albany)

    Sen. Jon Ford (R-Terre Haute)

    Why it matters

    The bill aims to place greater regulations on land contracts for purposes of businesses that engage in more than four land contracts at once. Exempted from the application of these new regulations are depository institutions, first lien mortgage lenders and subsidiaries of a first lien mortgage lender.

    Latest action

    The bill passed the House by a vote of 84-9 on third reading and has yet to be given a committee hearing in the Senate.


    HB 1353 – Financial Institutions and Consumer Credit

    Rep. Woody Burton (R-Whiteland)

    Sen. Eric Bassler (R-Washington)

    Why it matters

    The IMBA supports HB 1353, which is the annual bill from the Department of Financial Institutions. Every year, the DFI has an agency bill that cleans up portions of the code that it identifies as needing to be updated. The IMBA has reviewed the bill and supports the changes. There is one section of the bill that the IMBA sought clarification to fix the issue of which delinquency charge may be assessed. Last session the permissible delinquency charge was set in statute at $25 through the passage of HEA 1136. There was some confusion within contracts whether the delinquency share should be $25 or the former indexed rate according to the Consumer Price Index. The IMBA worked with legislators to clarify this inconsistency.

    Latest action

    The bill was heard in the Senate Insurance and Financial Institutions Committee on Feb. 18 to consider an amendment and was held for further consideration until Feb. 26.


  • February 18, 2020 4:00 PM | Alan Thorup (Administrator)

    STATEHOUSE SUMMARY

    This past week marked the first full week of committee hearings during the “second half” of the 2020 legislative session. The IMBA saw legislative activity on several bills of importance, including committee action on HB 1109 to which the IMBA testified in support. Legislative committees have two weeks to move bills that were assigned from the first half of session. Bills that passed the Senate are now in the House and vice versa. The IMBA will continue to monitor bills as they are scheduled for committee hearings and will monitor amendments that are filed to make additional changes.


    BILLS TO WATCH

    SB 327 – Reporting of Consumer Loans by Unlicensed Lenders

    Sen. Andy Zay (R-Huntington)
    Rep. Martin Carbaugh (R-Fort Wayne)


    Why it matters
    The bill requires the reporting of base-level consumer loan information to a private reporting agency approved by the Department of Financial Institutions under Chapter 7 (the payday lending section of the code). There is currently only one vendor approved by the department under Chapter 7. The requirement would apply to all lenders, both domiciled in state and out-of-state. Per IMBA conversations about the bill, this was an unintended consequence of the drafting of the bill. The IMBA was concerned about the new burdens this bill placed on lenders. Sen. Zay worked with the IMBA to clarify that the bill does not apply to depositories.

    Latest action
    The bill has been scheduled for a hearing in the House Financial Institutions Committee on Feb. 18.


    SB 395 – Uniform Consumer Credit Code

    Sen. Eric Bassler (R-Washington)
    Rep. Woody Burton (R-Whiteland)


    Why it matters
    This bill originated from recommendations made by the Financial Institutions Study Committee last summer. The IMBA provided suggested changes to the Uniform Consumer Credit Code for purposes of reforming the antiquated uniform law. However, the bill was amended in the Senate Insurance and Financial Institutions Committee with several significant changes. Most notably, the bill still attempts to fix the problematic refundable calculation of the prepaid/origination fee by establishing a flat origination fee/prepaid finance charge of no more than $75 for a consumer loan under $2,000, $150 for a consumer loan between $2,000 and $4,000, and $250 for a consumer loan over $4,000. The bill also raised the state usury rate from 25% to 36% but was amended to keep the rate at 25%. The bill was amended to remove several provisions about which the IMBA expressed concern, but still contains several items that are in need of additional work. The IMBA is continuing to work on addressing those issues.

    Latest action
    The bill has been scheduled for a hearing in the House Financial Institution Committee on Feb. 18.


    SB 408 – Various Tax Matters

    Sen. Travis Holdman (R-Markle)

    Rep. Tim Brown (R-Crawfordsville)


    Why It Matters

    The bill is the annual Department of Revenue legislation and makes various changes to Indiana’s tax code. Notably, the bill clarifies the treatment of factored receivables under the FIT. The IMBA monitors this bill every session for changes to Indiana’s tax code as it relates to financial institutions.

    Latest Action

    The bill has been referred to the House Ways and Means Committee and is awaiting a hearing.



    HB 1109 – Telephone Solicitation and Consumer Credit
    Rep. Matt Lehman (R-Berne)

    Sen. Greg Walker (R-Columbus)


    Why it matters
    The IMBA supports HB 1109 as this legislation fixes two issues from the passage of last session’s HEA 1123 and HEA 1668. HEA 1123 inadvertently expanded the registration requirement for telephone solicitation to any business in the state of Indiana using the telephone to solicit business. The registration requirement is burdensome and comes with private right of action if not implemented properly. The IMBA sought this clarification to ensure financial institutions are not required to register with the attorney general’s office.

    Additionally, the IMBA worked with lawmakers to amend HB 1109 to fix the issue lenders are dealing with when trying to pull a credit report on a customer and are returned an error message because of misinformation. HEA 1668, which passed in 2019, changed this process and took away the ability from lenders to do their own customer due diligence.

    Latest Action

    The bill was heard in the Senate Utilities Committee on Feb. 13 and was voted out unanimously.


  • February 11, 2020 3:57 PM | Alan Thorup (Administrator)

    STATEHOUSE SUMMARY

    This past week marked both second and third reading deadlines for all bills. This means that any bill that did not receive a committee vote prior and/or failed to move from third reading last week is considered dead for purposes of legislative tracking. This week marks the beginning of the second half of session and the IMBA will continue to work on several legislative action items.


    BILLS TO WATCH

    SB 327 – Reporting of Consumer Loans by Unlicensed Lenders

    Sen. Andy Zay (R-Huntington)

    Why it matters
    The bill requires the reporting of base-level consumer loan information to a private reporting agency approved by the Department of Financial Institutions under Chapter 7 (the payday lending section of the code). There is currently only one vendor approved by the department under Chapter 7. The requirement would apply to all lenders, both domiciled in state and out-of-state. Per IMBA conversations about the bill, this was an unintended consequence of the drafting of the bill. The IMBA was concerned about the new burdens this bill placed on lenders. Sen. Zay worked with the IMBA to clarify that the bill does not apply to depositories.

    Latest action
    The bill passed the Senate by a vote of 47-2 on third reading and is now eligible for consideration by the House.


    SB 395 – Uniform Consumer Credit Code

    Sen. Eric Bassler (R-Washington)

    Why it matters
    This bill originated from recommendations made by the Financial Institutions Study Committee last summer. The IMBA provided suggested changes to the Uniform Consumer Credit Code for purposes of reforming the antiquated uniform law. However, the bill was amended in the Senate Insurance and Financial Institutions Committee with several significant changes. Most notably, the bill still attempts to fix the problematic refundable calculation of the prepaid/origination fee by establishing a flat origination fee/prepaid finance charge of no more than $75 for a consumer loan under $2,000, $150 for a consumer loan between $2,000 and $4,000, and $250 for a consumer loan over $4,000. The bill also raised the state usury rate from 25% to 36% but was amended to keep the rate at 25%. The bill was amended to remove several provisions about which the IMBA expressed concern, but still contains several items that are in need of additional work. The IMBA is continuing to work on addressing those issues.

    Latest action
    The bill passed the Senate by a vote of 40-9 on third reading and is now eligible for consideration by the House.


    HB 1021 – Liens

    Rep. Jerry Torr (R-Carmel)

    Why it matters

    The bill would allow a person to discharge a mechanic’s lien directly with the recorder’s office without first filing in a court of record. A person may discharge a mechanic's lien by filing an indemnification, payment or cash bond with the recorder's office in an amount equal to at least 150% of the lien or $7,500, whichever is greater. By removing the requirement to file a lawsuit to satisfy a mechanic’s lien, the likelihood of a lien being satisfied is much greater which is a positive change for lenders if they have a borrower with property that is subject to the mechanic’s lien.

    Latest action

    The bill passed the House by a vote of 60-33 on third reading and is now eligible for consideration by the Senate.


    HB 1191 – Land Contracts

    Rep. Ed Clere (R-New Albany)

    Why it matters

    The bill aims to place greater regulations on land contracts for purposes of businesses that engage in more than four land contracts at once. Exempted from the application of these new regulations are depository institutions, first lien mortgage lenders and subsidiaries of a first lien mortgage lender.

    Latest action

    The bill passed the House by a vote of 84-9 on third reading and is now eligible for consideration by the Senate.


    HB 1353 – Financial Institutions and Consumer Credit

    Rep. Woody Burton (R-Whiteland)

    Why it matters

    The IMBA supports HB 1353, which is the annual bill from the Department of Financial Institutions. Every year, the DFI has an agency bill that cleans up portions of the code that it identifies as needing to be updated. The IMBA has reviewed the bill and supports the changes. There is one section of the bill that the IMBA sought clarification to fix the issue of which delinquency charge may be assessed. Last session the permissible delinquency charge was set in statute at $25 through the passage of HEA 1136. There was some confusion within contracts whether the delinquency share should be $25 or the former indexed rate according to the Consumer Price Index. The IMBA worked with legislators to clarify this inconsistency.

    Latest action

    The bill passed the House by a vote of 92-0 on third reading and is now eligible for consideration by the Senate.


  • February 06, 2020 3:55 PM | Alan Thorup (Administrator)

    STATEHOUSE SUMMARY

    This past week marked the final week for committees to vote on bills due to the legislative calendar’s deadlines for committee activity. Those deadlines were last Tuesday for the House and Thursday for the Senate. This week will mark both second and third reading deadlines for all bills. This means that any bill that did not receive a committee vote last week and/or fails to move from third reading this week is considered dead for purposes of legislative tracking. Despite the short timeline provided, there are a number of bills moving through the process. The IMBA will be monitoring second reading amendments to notable bills this week and will be preparing to continue the work on several legislative action items during the second half of session, which will resume Feb. 10.


    BILLS TO WATCH

    SB 43 – Fraud Consolidation

    Sen. Michael Young (R-Indianapolis)

    Why it matters

    SB 43 attempts to consolidate the entire criminal fraud statute in the Indiana code. The IMBA is monitoring the bill as it consolidates crimes against a financial institution. To date, the IMBA has no concerns with SB 43.

    Latest action

    The bill was heard in the Senate Corrections and Criminal Law Committee on Jan. 28. It is now eligible for second reading amendments.


    SB 327 – Reporting of Consumer Loans by Unlicensed Lenders

    Sen. Andy Zay (R-Huntington)

    Why it matters
    The bill requires the reporting of base-level consumer loan information to a private reporting agency approved by the Department of Financial Institutions under Chapter 7 (the payday lending section of the code). There is currently only one vendor approved by the department under Chapter 7. The requirement would apply to all lenders, both domiciled in state and out-of-state. Per IMBA conversations about the bill, this was an unintended consequence of the drafting of the bill. The IMBA was concerned about the new burdens this bill placed on lenders. Sen. Zay worked with the IMBA to clarify that the bill does not apply to depositories.

    Latest action
    This bill was heard in the Senate Insurance and Financial Institutions Committee on Jan. 22 and held. The bill was amended in the committee on Jan. 29 to address the IMBA’s concerns.


    SB 350 - Central Indiana Regional Development Authority

    Sen. Travis Holdman (R-Markle) 

    Why it matters

    This bill authorizes counties and municipalities within the Indianapolis metropolitan area to establish a Central Indiana Regional Development Authority Pilot that will sunset on July 1, 2025. It requires counties and municipalities that wish to establish the development authority to adopt substantially similar resolutions to adopt a preliminary strategic economic development plan. The bill creates a development authority fund to be established and to be used for purposes of economic development. The IMBA is monitoring the broad powers granted to the board and the financing structure that is currently permitted under the bill.

    Latest action

    The bill was amended in the Senate Tax and Fiscal Committee on Jan. 28. It has moved from second reading to third reading and is currently awaiting a final vote by the Senate.


    SB 395 – Uniform Consumer Credit Code

    Sen. Eric Bassler (R-Washington)

    Why it matters
    This bill originated from recommendations made by the Financial Institutions Study Committee last summer. The IMBA provided suggested changes to the Uniform Consumer Credit Code for purposes of reforming the antiquated uniform law. However, the bill was amended in the Senate Insurance and Financial Institutions Committee with several significant changes. Most notably, the bill still attempts to fix the problematic refundable calculation of the prepaid/origination fee by establishing a flat origination fee / prepaid finance charge of no more than $75 for a consumer loan under $2,000, $150 for a consumer loan between $2,000 and $4,000, and $250 for a consumer loan over $4,000. The bill also raised the state usury rate from 25% to 36% but was amended to keep the rate at 25%. The bill was amended to remove several concerning provisions expressed by the IMBA but still contains several items that are in need of additional work. The IMBA is continuing to work on addressing those issues.

    Latest action
    This bill was heard in the Senate Insurance and Financial Institutions Committee on Jan. 22 and held. The bill was amended in the committee on Jan. 29 with a substantial amendment restructuring a number of provisions in the original draft.


    SB 407 – Consumer Credit Transactions

    Sen. Greg Walker (R-Columbus)

    Why it matters

    The IMBA has concerns with SB 407 as it would require all lenders doing business in Indiana to adhere to the Uniform Consumer Credit Code whether or not they are domiciled in Indiana. Currently, national banks are governed by federal laws specific to consumer loans, and the IMBA is concerned that this bill would have unintended consequences of requiring them to adhere to the UCCC. Additionally, the bill prohibits a lender from assessing the authorized nonrefundable prepaid finance charge on the second or any subsequent refinancing of a consumer loan made to a borrower by the lender. Finally, the bill was amended in committee with language that permitted the DFI to evaluate and ultimately regulate affiliate relationships of Indiana-based banks. The IMBA is concerned about the new burdens this bill places on lenders and is working to address those concerns.

    Latest action

    The bill was heard in the Senate Insurance and Financial Institutions Committee on Jan. 29 but was held due to a number of concerns expressed by the committee members.


    SB 444 – Public Deposits With Credit Unions

    Sen. Chip Perfect (R-Lawrenceburg)

    Why it matters

    The IMBA is opposed to this legislation. A proposal of increasing the cap to 25% was suggested as a possible change to the bill. The IMBA discussed this approach internally and, due to much concern, remains opposed to the legislative proposal.


    Latest action

    The bill was assigned to the Senate Tax and Fiscal Policy Committee and will not receive a hearing.


  • January 28, 2020 3:53 PM | Alan Thorup (Administrator)

    STATEHOUSE SUMMARY

    There are only a few days left for committees to consider bills before the committee report deadline. Committee work will conclude for the first half of session on Thursday. For a bill to be eligible for consideration by the General Assembly, it will have to pass committee by this deadline. This week sets up the remainder of session and narrows the scope of legislation that will be eligible for consideration in 2020.


    BILLS TO WATCH

    SB 100 – Nonconforming Structures

    Sen. Blake Doriot (R-Syracuse)

    Why it matters
    The IMBA supports SB 100, which allows a parcel owner to reconstruct, repair, or renovate the nonconforming structure if the reconstruction, repairment, or renovation meets certain requirements. Because of the change in zoning laws, structures must conform to new standards after a casualty loss, which puts both the owner and the lien holder at additional risk.

    Latest action
    The bill passed the Senate by a vote of 47-0 and is now eligible for consideration by the House.


    SB 327 – Reporting of Consumer Loans by Unlicensed Lenders

    Sen. Andy Zay (R-Huntington)

    Why it matters

    The bill requires the reporting of base level consumer loan information to a private reporting agency approved by the Department of Financial Institutions under Chapter 7 (the payday lending section of the code). There is currently only one vendor approved by the department under Chapter 7. The requirement would apply to all lenders, both domiciled in state and out-of-state. Per IMBA conversations about the bill, this is an unintended consequence of the drafting of the bill. The IMBA is concerned about the new burdens this bill places on lenders and is working to address those concerns.

    Latest action

    This bill was heard in the Senate Insurance and Financial Institutions Committee on Jan. 22 and will be heard again Wednesday to consider amendments and for a committee vote.


    SB 395 – Uniform Consumer Credit Code

    Sen. Eric Bassler (R-Washington)

    Why it matters

    This bill originated from recommendations made by the Financial Institutions Study Committee last summer. The IMBA provided suggested changes UCCC for purposes of reforming the antiquated uniform law. The bill incorporates three recommendations from the IMBA. Most notably, the bill attempts to fix the problematic refundable calculation of the prepaid/origination fee. The bill also raises the state usury rate from 25% to 36%. The bill does have several sections that are concerning, and the IMBA Legislative Team is currently working with lawmakers to address those issues.

    Latest action

    This bill was heard in the Senate Insurance and Financial Institutions Committee on Jan. 22 and will be heard again Wednesday to consider amendments and for a committee vote.


    SB 407– Consumer Credit Transactions

    Sen. Greg Walker (R-Columbus)

    Why it matters

    The IMBA has concerns with SB 407 as it would require all lenders doing business in Indiana to adhere to the Uniform Consumer Credit Code whether or not they are domiciled in Indiana. Currently, national banks are governed by federal laws specific to consumer loans, and the IMBA is concerned that this bill would have unintended consequences of requiring them to adhere to the UCCC. Additionally, the bill prohibits a lender from assessing the authorized nonrefundable prepaid finance charge on the second or any subsequent refinancing of a consumer loan made to a borrower by the lender. The IMBA is concerned about the new burdens this bill places on lenders and is working to address those concerns.

    Latest action

    The bill was assigned to the Senate Insurance and Financial Institutions Committee and is scheduled for a hearing on Jan. 29.


    HB 1109 – Telephone Solicitation and Consumer Credit
    Rep. Matt Lehman (R-Berne)

    Why it matters

    The IMBA supports HB 1109 as this legislation fixes two issues from the passage of last session’s HEA 1123 and HEA 1668. HEA 1123 inadvertently expanded the registration requirement for telephone solicitation to any business in the state of Indiana using the telephone to solicit business. The registration requirement is burdensome and comes with private right of action if not implemented properly. The IMBA sought this clarification to ensure financial institutions are not required to register with the attorney general’s office.

    Additionally, the IMBA worked with lawmakers to amend HB 1109 to fix the issue lenders are dealing with when trying to pull a credit report on a customer and are returned an error message because of misinformation. HEA 1668, which passed in 2019, changed this process and took away the ability from lenders to do their own customer due diligence.

    Latest action

    The bill passed the House by a vote of 95-0 and is now eligible for consideration by the Senate.


    HB 1154 – Septic System Inspection Before Property Transfer
    Rep. Mike Aylesworth (R-Hebron)

    Why it matters

    HB 1154 would require a septic system to be inspected and mitigated to certain standards before a transfer of deed can be executed. The IMBA has concerns with HB 1154 because of the potential for property transfers to be delayed or halted outright because of this additional regulation. Buyers have the option of inspecting septic and well systems currently, should they choose.

    Latest action

    The bill was assigned to the House Environmental Affairs Committee and has not been scheduled for a hearing.


  • January 24, 2020 3:38 PM | Alan Thorup (Administrator)

    STATEHOUSE SUMMARY

    The second week of the 2020 Indiana General Assembly has been a busy one. Committee work is in full swing as lawmakers work quickly to schedule hearings and debate bills of importance. The IMBA testified in support of HB 1109 as amended last week in the House Utilities, Energy and Telecommunications Committee. This week brings an abbreviated work week due to session not meeting on Monday in observance of MLK Day. Of note are Financial Institutions Committee hearings in both the House and Senate.


    BILLS TO WATCH

    HB 1109 – Telephone Solicitation and Consumer Credit

    Rep. Matt Lehman (R-Berne)


    Why it matters
    The IMBA supports HB 1109, as this legislation fixes the issue from last session’s passage of HEA 1123. That bill inadvertently expanded the registration requirement for telephone solicitation to any business in the state of Indiana using the telephone to solicit business. The registration requirement is burdensome and comes with private right of action if not implemented properly. The IMBA is seeking a clarification in HB 1109 to ensure financial institutions are not required to register with the attorney general’s office.

    IMBA-Supported Committee Amendment: The IMBA worked with lawmakers to draft an amendment that fixed the issue lenders are dealing with when trying to pull a credit report on a customer and receiving an error message because of misinformation. HEA 1668, which passed in 2019, changed this process and took away lenders’ ability to do their own customer due diligence. The amendment would repeal HEA 1668 and reinstate the process that was working previously. The amendment was adopted in committee and now resides in the bill.

    Latest action
    The bill passed the House Utilities, Energy and Telecommunications Committee as amended 11-0 and is currently eligible for 2nd reading amendments.

    Learn more about HB 1109


    HB 1154 – Septic System Inspection Before Property Transfer

    Rep. Mike Aylesworth (R-Hebron)


    Why it matters
    HB 1154 would require a septic system to be inspected and mitigated to certain standards before a transfer of deed can be executed. The IMBA has concerns with HB 1154 because of the potential for property transfers to be delayed or halted outright because of this additional regulation. Buyers have the option of inspecting septic and well systems currently, should they choose.

    Latest action
    The bill was assigned to the House Environmental Affairs Committee and has not been scheduled for a hearing.

    Learn more about HB 1154


    SB 50 – Various Trust and Probate Issues

    Sen. Aaron Freeman (R-Indianapolis)


    Why it matters
    SB 50 was refined and crafted during the interim study committee process last summer through committee deliberation and testimony from various industries. The IMBA Legislative Team worked to keep out of the bill a harmful forced foreclosure proposal that would require a mortgage holder to file a foreclosure on a property in probate if the heir to the property requested it. SB 50 also includes provisions that amend the legacy trust statute that was passed into law during the 2019 legislative session. The amendments clarify that only the lender that relied upon the assets listed on a financial statement when extending credit are able to proceed against those assets in the event of a default. Other changes include various changes to trust and probate laws concerning proof of title affidavits, small estate affidavits, execution of a trust by a third party, silent trusts and nonjudicial settlements of accounts.

    Latest action
    The bill passed the Senate Judiciary Committee as amended 8-0 and is currently eligible for 2nd reading amendments.

    Learn more about SB 50


    SB 100 – Nonconforming Structures

    Sen. Blake Doriot (R-Syracuse)


    Why it matters
    The IMBA supports SB 100 which allows a parcel owner to reconstruct, repair, or renovate the nonconforming structure if the reconstruction, repair, or renovation meets certain requirements. Because of the change in zoning laws, structures must conform to new standards after a casualty loss which puts both the owner and the lien holder at additional risk.

    Latest action
    The bill passed Senate Local Government Committee as amended by a vote of 10-0 and is currently eligible for 2nd reading amendments.

    Learn more about SB 100


  • January 13, 2020 3:30 PM | Alan Thorup (Administrator)

    STATEHOUSE SUMMARY

    The first week of the 2020 Indiana legislative session is in the books! The legislature set the pace in the first week as this short session begins to take shape with the goal of adjourning early, potentially by March 11.With such a short timeline in sight, expect the legislature to move at a hectic pace. Topics that the legislature focused on most last week were education, healthcare and how the state should spend the extra tax revenue that was revealed in the most recent revenue forecast. The list of bills filed for 2020 is growing, and the IMBA Legislative Team continues to review them as they become available. Stay tuned as more bills important to the industry are released this week, to be highlighted inIMBA Insighter.


    BILLS TO WATCH

    HB 1085 – Delinquent Sewer Fees
    Rep. Jim Pressel (R-Rolling Prairie)

    Why it matters

    The IMBA supports HB 1085 which requires notice to the first-lien mortgage holder of a property when sewer fees become 60 days delinquent in order for a sewer lien to be attached. In years past the IMBA asked for notification to the lien holder (current law only requires notifying the owner of a property when sewer fees become 60 days delinquent) when sewer fees become delinquent because of the priority status sewer liens have over first-lien mortgages. This change would allow a lender to intervene when a sewer lien is attached in an effort to keep a property from going to tax sale.

    Latest action

    The bill is scheduled for a hearing in the House Judiciary Committee on Jan. 13.


    HB 1109 – Registration of Telemarketers
    Rep. Matt Lehman (R-Berne)

    Why it matters

    This legislation fixes the issue from the passage of last session’s HEA 1123. That bill inadvertently expanded the registration requirement for telephone solicitation to any business in the state of Indiana using the telephone to solicit business. The registration requirement is burdensome and comes with private right of action if not done properly. The IMBA is seeking a clarification in HB 1109 to ensure financial institutions are not required to register with the attorney general’s office.

    Latest action

    The bill has been assigned to the House Utilities, Energy and Telecommunications Committee and is currently awaiting a hearing.


    HB 1239 – Territorial Application of the UCCC

    Rep. Chris Chyung (D-Dyer)


    Why it matters

    This legislation appears to be aimed at lenders and financial institutions that are located out-of-state, but have a lending presence within Indiana. The legislation is attempting to apply the UCCC and its restrictions to all loans made in Indiana. This would be unconstitutional. The IMBA is opposed to further expansion of the UCCC.

    Latest action

    This bill has been assigned to the House Financial Institutions Committee and has not been scheduled for a hearing.


    SB 50 – Various Trust and Probate Issues

    Sen. Aaron Freeman (R-Indianapolis)

    Why it matters

    SB 50 was refined and crafted during the interim study committee process last summer through committee deliberation and testimony from various industries. The IMBA Legislative Team worked to keep out of the bill a harmful forced foreclosure proposal that would require a mortgage holder to file a foreclosure on a property in probate if the heir to the property requested it. SB 50 also includes provisions that amend the legacy trust statute that was passed into law during the 2019 legislative session. The amendments clarify that only the lender that relied upon the assets listed on a financial statement when extending credit are able to proceed against those assets in the event of a default. Other changes include various changes to trust and probate laws concerning proof of title affidavits, small estate affidavits, execution of a trust by a third party, silent trusts and nonjudicial settlements of accounts.


    Latest action

    The bill was heard in Senate Judiciary committee on Jan. 8 but was held for further amendments.


    SB 100 – Right to Restore or Reconstruct a Dwelling

    Sen. Blake Doriot (R-Syracuse)

    Why it matters

    The bill allows a person to restore or reconstruct a nonconforming residential single family dwelling within the dwelling's existing footprint, if the dwelling: (1) is nonconforming only as to lot size, setbacks, or any other dimensional requirements; (2) is a habitable dwelling assessed as residential property; and (3) has not been condemned.

    Latest action

    The bill was heard in Senate Local Government Committee but was held for further consideration.

  • April 05, 2019 1:14 PM | Anonymous

    STATEHOUSE SUMMARY

     Last week saw significant committee activity, as policymakers worked through bills to meet the looming deadline for all committee work to be completed. Depending on perspective, these final committee work weeks can be problematic or beneficial, as this is the last opportunity for wayward legislative changes to find bills still alive to be amended into. The deadline for committee reports is the coming week. The IMBA Legislative Team continues to scrutinize amendments for concerns, while advocating for bill changes that will positively impact the industry.

     

     BILLS OF IMPORTANCE

    Senate Bill 265 - Various Trust Matters

    Sen. Randy Head, R-Logansport / Rep. Greg Steuerwald, R-Avon

    Summary of legislation: Defines "designated representative," "judicial proceeding" and "non-judicial matter" for purposes of the trust code. Authorizes the establishment of legacy trusts. Prescribes the procedures for establishing a legacy trust and requirements for claims under a legacy trust. Provides that a court shall exercise jurisdiction over a legacy trust or a qualified disposition and adjudicate a case or controversy regarding the legacy trust, if the case or controversy is within the subject matter of the court. Adopts the Uniform Directed Trust Act, which allows for the terms of a trust to grant a person other than a trustee power over some aspect of the trust's administration. Provides that current law regarding the duties and liabilities of a trustee of a trust under the control of a third person applies to directions given to a trustee before July 1, 2019, by a person who has power under the terms of the trust to direct the trustee. Allows for the use of quiet trusts. Provides that an interested person may enter into a binding non-judicial settlement agreement with respect to trust matters. Provides for non-judicial account settlements.

    What you need to know: The IMBA has worked extensively with the authors to amend the bill to provide creditors with protections against trusts that would shield encumbered assets from creditors without notice. The bill to ensure that assets on a financial statement used in securing loans could not be shielded by the trust, and creditors would still have access to them in the event of a default. Notice is also provided to creditors when assets are placed into this self-settled trust.

    Latest action: The bill was heard in the House Judiciary Committee on March 11. The bill was held for potential amend and vote.

     House Bill 1600 - Study Committee on Protection of Senior Citizens

    Rep. Melanie Wright, D-Yorktown / Sen. Tim Lanane, D-Anderson

    Summary of Legislation: The bill urges the Legislative Council to assign to an appropriate interim study committee the task of studying certain issues concerning elder care.

    What you need to know: The IMBA has been monitoring the progress of the legislation. If the bill becomes law, the IMBA will monitor and potentially engage in the summer study committee, dependent on the direction of the discussion.

    Latest action: The bill passed the Senate 47-0 and now awaits signature by the governor.

     House Bill 1588 - Insurance Matters

    Rep. Martin Carbaugh, R-Fort Wayne / Sen. Eric Bassler, R-Washington

    Summary of Legislation: This bill has the following provisions: (1) Provides for cessation of the Political Subdivision Risk Management Commission, the Political Subdivision Risk Management Fund, and the Political Subdivision Catastrophic Liability Fund. (2) Repeals the law providing for availability of high-risk property coverage under the federal Urban Property Protection and Reinsurance Act of 1968. (3) Exempts flood insurance policies from the kinds of policies under which mine subsidence coverage must be made available. (4) Repeals the law concerning the small employer voluntary reinsurance program. (5) Urges the Legislative Council to assign to an interim study committee during the 2019 interim of the General Assembly the study of insurance data security.

    What you need to know: The title industry is attempting to amend language into HB 1588 that provides immunity against negligence or omission for any error made outside the contract for the title search or title policy.

    Latest action: The bill was heard in the Senate Insurance and Financial Institutions Committee last week and is rescheduled for an amendment and vote this week.

     

  • March 26, 2019 8:19 AM | Anonymous

    STATEHOUSE SUMMARY

     With the official transition from winter into spring, the Indiana General Assembly continues to work through the 2019 legislative session. With just over a month of session remaining and a few more weeks of committee meetings, the bills that have not yet been heard in the second half of session must be heard soon, or will fail to pass this year.

     There was recent legislative action on a few bills the IMBA Legislative Team has been working on since January, as indicated below:

      

     BILLS OF IMPORTANCE

     House Bill 1123 - Telephone Solicitation

    Rep. Jeff Ellington, R-Bloomington / Sen. Randy Head, R-Logansport

     Summary of legislation: This bill has the following provisions:

    Executive Officer: The bill defines "executive officer" for purposes of the telephone solicitation law. The bill also provides that an executive officer of a person that violates the telephone solicitation law commits a separate deceptive act actionable by the Consumer Protection Division.

     Rule Making: The bill requires the Consumer Protection Division of the Office of the Attorney General to amend its rules to allow businesses to be included in the quarterly listing of telephone numbers of persons that request not to be solicited by telephone.

    Expansion of Telephone Solicitation Fund: The bill also allows the division to use the Telephone Solicitation Fund to: (1) administer the statutes concerning: (A) the registration of telephone solicitors; and (B) the regulation of automatic dialing machines; and (2) reimburse county prosecutors for expenses incurred in extraditing violators of these and other state and federal statutes concerning telephone solicitations. (Current law provides that the fund may only be used to administer: the state's "do not call" statute; the federal statute concerning restrictions on the use of telephone equipment; and the state statute concerning misleading or inaccurate caller identification.)

    What you need know: The IMBA worked with the author to amend the legislation in the House to provide an exemption for existing customer relationships of financial institutions from the Do Not Call statute. This exemption will allow financial institutions to call existing customers to offer products better suited for their needs. The IMBA SUPPORTS the exemption language in the bill.

    Latest action: The bill passed the Senate Utilities Committee on March 21 by a vote of 10-0 and is now eligible for second reading amendments.

      

    House Bill 1347 - Municipally Owned Utilities

    Rep. Woody Burton, R-Whiteland / Sen. Jack Sandlin, R-Indianapolis

     Summary of legislation: The bill provides that all rates, charges, and other fees for services rendered by a municipally owned utility to property occupied by someone other than the owner are payable by the person occupying the property if the account or other customer or billing records maintained by the utility for the property indicate that: (1) the property is occupied by someone other than the owner; and (2) the person occupying the property is responsible for paying the rates, charges, and fees. Provides that rates, charges, and fees assessed by a municipally owned utility with respect to property occupied by someone other than the owner do not constitute a lien against the property. Specifies that these provisions do not: (1) prohibit a municipal legislative body from imposing any requirement to: (a) ensure payment by; or (b) the creditworthiness of; the person occupying the property; or (2) abrogate or limit the authority of the owner of a multi-unit building to engage in electrical submetering. Establishes a process for establishing a policy review committee (committee) for a municipally owned utility that has properly withdrawn from the jurisdiction of the utility regulatory commission. Provides that a committee may be established if a specified number of the registered voters of the municipality file a petition with the utility's board. Provides that the petition must set forth procedures by which the committee is authorized to do the following: (1) Receive complaints from customers concerning the utility's rules and policies, rates and charges, and service quality. (2) Attempt to negotiate a resolution with the utility's board with respect to complaints received. (3) Seek mediation to be overseen by the office of the attorney general with respect to complaints that are not resolved through negotiations. Authorizes the attorney general to adopt rules to implement these provisions.

    What you need to know: The IMBA is supportive of the legislation and the language prohibiting liens on non-owner occupied property by a municipally owned utility. Local governments continue to seek priority lien status for various services, following the same structure that already exists for priority sewer liens. The bill was amended in the House to require municipalities to notify lienholders of sewer bill delinquencies after 60 days, or municipalities would not be able to attached sewer liens on the properties.

    Latest action: The bill passed the Senate Utilities Committee on March 21 by a vote of 8-2 and is now eligible for second reading amendments.

     

    Senate Bill 380 - Supported Decision-Making

    Sen. Eric Koch, R-Bedford / Rep. Wendy McNamara, R-Evansville

     Summary of legislation: This bill requires that a person who files a petition for the appointment of a guardian for an incapacitated person or minor must inform the court what less-restrictive alternatives were considered or implemented and, if less restrictive alternatives were not considered or implemented, the reason for the failure to consider or implement less-restrictive alternatives. It also provides for the use of supported decision-making agreements for adults who need support and accommodations in making, communicating and effectuating decisions.

     What you need to know: The IMBA worked with lawmakers to amend the bill in the Senate to ensure that a person who serves as a supported decision-maker will not have access to the financial records of an individual without prior authorization.

     Latest action: The bill passed the House Judiciary Committee on March 18 by a vote of 12-0 and is now eligible for second reading amendments.

     

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