Indiana State Legislative Update February 8, 2021

February 08, 2021 12:22 PM | Wendy Bayley (Administrator)

STATEHOUSE SUMMARY

The past week brought significant legislative activity at the Indiana Statehouse. Lawmakers have quickened the pace after a slow and cautious start to the 2021 legislative session. A number of bills notable to the Indiana Mortgage Bankers Association were addressed by the process last week including: a bill requiring the transition to a statewide electronic lien and title system (SB 400), a bill to clarify the statute of limitations on deposit accounts (SB 370), a bill to fix the second witness issue from SEA 340 (HB 1056) and the annual bill of the Department of Financial Institutions (SB 346), to name a few.

Committee chairs have this week and part of next week to hear, amend and vote on any legislation assigned to their committees. Committee report deadlines are next Tuesday, Feb. 16, for the House and next Thursday, Feb. 18, for the Senate. Deadlines for third reading in the House and Senate are Feb. 22 and Feb. 23, respectively. The IMBA Legislative Team will continue working with bill authors and committee chairs over the coming weeks on legislation that is important to the industry.


BILLS TO WATCH

SB 346 – Financial Institutions and Consumer Credit

Sen. Eric Bassler (R-Washington)

Why it matters

For purposes of the statutes governing (1) first-lien mortgage transactions, (2) the Uniform Consumer Credit Code and (3) financial institutions; changes references to federal laws within those statutes from federal laws as in effect on Dec. 31, 2019, to federal laws as in effect on Dec. 31, 2020. Amends the statute concerning loans made by credit unions to their members to eliminate certain requirements with respect to loans secured by real estate. Amends the definition of “check” for purposes of the statute governing licensed cashers of checks to remove a reference to a “personal money order.” SB 346 is the annual bill of the Indiana Department of Financial Institutions, which every year suggests changes to law that it deems necessary, based primarily on findings from examiners. The IMBA supports the legislation.

Latest action

The bill was heard in the Senate Committee on Insurance and Financial Institutions and passed by a vote of 8-0.

Learn more about SB 346


SB 1 & HB 1002 – Civil Immunity Related to COVID-19

Sen. Mark Messmer (R-Jasper)

Rep. Jerry Torr (R-Carmel)

Why it matters
This is a broadly applied immunity bill for COVID-19 liability supported by a coalition of business trades and other individual entities. The House also has a bill that creates immunity from COVID-19 liability-related lawsuits. SB 1 differs from the House version of immunity in application, as SB 1 is more premise-based regarding immunity. The IMBA supports the general approach to provide immunity to businesses from COVID-19-related lawsuits.

Latest action
SB 1 passed the House Committee on Judiciary on Feb. 2 and will not be considered before the entire House. HB 1002 was passed by a vote of 76-21 and will now be considered by the Senate.

Learn more about SB 1

Learn more about HB 1002


HB 1056 – Recording Requirements

Rep. Jerry Torr (R-Carmel)

Why it matters
This bill is the “fix” to the second witness requirement to record instruments that arose from the interpretation of language change “or” to “and” in SEA 340 from the 2020 session. House Bill 1056 also retroactively applies the language to all instruments recorded after July 1, 2020. The IMBA is in support of the legislation.

Latest action
The Senate Committee on Judiciary passed HB 1056 on Feb. 4, and the bill will soon be heard by the entire Senate for consideration. The bill is effective upon passage. Once the bill passes the Senate and is signed by Gov. Eric Holcomb, it will become law immediately, instead of on the usual effective date of July 1.

Learn more about HB 1056


HB 1255 – Probate and Property Matters

Rep. John Young (R-Franklin)

Why it matters
This bill comes from the Indiana Bar Association and makes various changes to wills, powers of attorney, trust, conveyances and county recorders. Notably, the bill also attempts to fix the second witness issue created from the passage of SEA 340 from last session. The bill also places requirements on county government to accept and record electronic documents.

Latest action
The bill passed the House by a vote of 95-1 and is now eligible for committee consideration by the Senate.

Learn more about HB 1255


HB 1314 – Recorded Discriminatory Covenants

Rep. Jerry Torr (R-Carmel)

Why it matters
The bill makes an important change in creating a process to repeal an existing discriminatory covenant.

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

Learn more about HB 1314


HB 1498 – Publication of Local Government Notices

Rep. Doug Miller (R-Elkhart)

Why it matters

Allows a political subdivision to publish legal notices on a legal notice website instead of in a newspaper. Establishes requirements regarding availability and accessibility of a legal notice website. Requires a political subdivision to designate an official responsible for the electronic publication of legal notices, if the political subdivision publishes legal notices electronically. Provides that if a political subdivision does not have an official website, legal notices may be published on an official website of the county government. Establishes requirements for the duration of the posting of a legal notice and proof of posting. Provides that a towing service acting as an agent of a government agency that provides the notice required to dispose of abandoned vehicles or parts is subject to the same public notice advertising rates as a governmental agency. Publishing legal notices for actions such as sheriff’s sales in newspapers can be costly and are generally passed along to property owners and incurred by lenders. The new process provided in the bill could save costs related to publishing legal notices. The IMBA supports creating more options for publishing legal notices.

Latest action

HB 1498 passed the House Committee on Government and Regulatory Reform on Feb. 2 and is now eligible for consideration by the entire House.

Learn more about HB 1498



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