The Indiana General Assembly has moved one week closer to the conclusion of the 2021 legislative session. Lawmakers now have less than a month to finalize and pass any remaining legislative proposals by the newly established end date of April 21. Committee work continued through this past week as lawmakers worked through bills still considered alive. Notably to the IMBA, bills on the state budget (HB 1001), publication of notices (SB 332) and the annual Department of Financial Institutions (SB 346), all saw committee time this week. The IMBA Legislative Team will continue to monitor legislative activity as it relates to the industry.
BILLS TO WATCH
SB 332 – Publication of Notice by Political Subdivisions
Sen. Jim Buck (R-Kokomo)
Rep. Doug Miller (R-Elkhart)
Why it matters
Among other publication changes, the bill notably provides that if, with regard to a sheriff's sale of real property to execute a judgment, the sheriff is not able to procure publication of the notice in a newspaper of general circulation within the county, the sheriff may publish the notice on the website of each county where the real estate is located (instead of dispensing with the publication of notice entirely). This stated requirement was amended out of the bill in committee last week, leaving all other notices except sheriff’s sale with the ability to utilize the new provision. The IMBA generally supports the legislation that identifies more cost-effective ways for the consumer and the lender regarding publication costs and would like to see this language put back into the bill.
The bill passed the House Committee on Government and Regulatory Reform on March 24 by a vote of 10-1 and will now be eligible for further amendments on second reading.
Learn more about SB 332
SB 346 – Financial Institutions and Consumer Credit
Sen. Eric Bassler (R-Washington)
Rep. Martin Carbaugh (R-Fort Wayne)
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.
The bill passed the House Committee on Financial Institutions and Insurance on March 23 by a vote of 13-0 and will now be eligible for further amendments on second reading.
Learn more about SB 346
SB 383 – Various Tax Matters
Sen. Travis Holdman (R-Markle)
Rep. Tim Brown (R- Crawfordsville)
Why it matters
The bill requires a corporation with gross income of more than $1 million to file its corporate income tax return in an electronic manner specified by the Department of State Revenue (DOR). The bill provides certain procedures for reporting federal partnership audit adjustments for purposes of the state Adjusted Gross Income Tax and Financial Institutions Tax in order to conform with changes in federal law. It removes certain unnecessary information requirements for employers withholding tax reporting forms. It specifies that the penalty provisions in current law for failure to make a payment by electronic funds transfer also apply to a failure to make a payment by any other electronic means.
It clarifies the penalty calculation for failure to make estimated tax payments, including estimated Utility Receipts Tax and Financial Institutions Tax payments. The bill provides that a taxpayer may elect to claim a tax credit against the taxpayer’s Indiana Adjusted Gross Income Tax liability for the amount of tax that is imposed in a foreign country, but not due from the taxpayer under the laws of that foreign country until a tax year after the tax year in which the income subject to the foreign country’s tax is included in the taxpayer’s Indiana adjusted Gross income (with retroactive application to tax years beginning after Dec. 31, 2016). It provides that the provision in current law requiring an out-of-state merchant to collect sales tax on retail transactions made in Indiana if certain threshold conditions are met extends to the following: (1) the Tobacco Products Tax; (2) the Waste Tire Management Fee; (3) the Fireworks Public Safety Fee; and(4) the Prepaid Wireless Service Charge. The bill also makes other changes to Indiana tax code.
The bill passed the House Committee on Ways and Means on March 24 by a vote of 22-0 and will now be eligible for further amendments on second reading.
Learn more about SB 383
HB 1001 – State Budget
Rep. Tim Brown (R-Crawfordsville)
Sen. Ryan Mishler (R-Bremen)
Why it matters
The bill establishes Indiana’s operating budget for the coming two years. It also makes a number of other changes that fall outside of the budget drafting process. Among those changes are an enhancement of the Venture Capital Investment Tax Credit, the creation of the Next Level Regional Recovery Fund to support economic development and regional recovery, and language that brings the Indiana tax code up to date with federal tax code changes made in 2020. The IMBA Legislative Team is monitoring the budget as it is amended through the process.
The bill was assigned to the Senate Appropriations Committee and was heard on March 25.
Learn more about HB 1001
HB 1252 – Probate and Guardianship Matters
Rep. John Young (R-Greenwood)
Sen. Aaron Freeman (R-Indianapolis)
Why it matters
The bill removes conflicts between probate and guardianship statutes regarding classification of claims. It also requires, for purposes of power of attorney act, that a principal may not be a minor. The IMBA Legislative Team is monitoring the legislation to ensure it remains a technical fix bill.
The bill was amended and passed out of the Senate Judiciary Committee on March 24. The bill is now eligible for second reading amendments.
Learn more about HB 1252