STATEHOUSE SUMMARY
Last week marked the “half-way” point of the 2022 session of the Indiana General Assembly. Both the House and Senate moved through these important deadlines that determined the fate of many introduced bills. The House third reading deadline was Jan. 31, and the Senate third reading deadline was Feb. 1. The third reading is where bills must receive a vote by the full chamber to continue through the legislative process. For comparison, 432 House bills and 417 Senate bills were introduced this session. As of last week, 104 House bills and 161 Senate bills remain alive.
All bills still alive now cross over from the chamber of origin. House bills that passed third reading now move to the Senate, and Senate bills that passed third reading now move to the House for deliberation. Committee work will now resume for these bills and will move through the end of February. While the IMBA had several significant successes with troubling bills in the first half, there are multiple bills still alive that the IMBA is monitoring and several that need work during the second half of session. The IMBA Legislative Team will continue working on legislation to either protect the gains that have been made or alter a few bills that need improvements.
BILLS TO WATCH
SB 262 – Housing Tax Credits
Sen. Travis Holdman (R – District 19)
What you need to know
The bill creates a new housing tax credit in Indiana. The credit is designed to complement federal housing tax credits (Section 42). This enhancement will increase the viability of new development in the multi-family housing space.
Latest action
The bill passed a third reading vote in the Senate 47-0. The bill has been assigned to the House Ways and Means Committee.
Learn more about SB 262
SB 352—Supervised Consumer Loans
Sen. Zay (R – District 17)
What you need to know
The bill provides that for a consumer loan, a lender may contract for a loan finance charge not exceeding 36% per year, in the case of a loan agreement entered into after June 30, 2022 versus a loan finance charge not exceeding 25%, in the case of a loan agreement entered into before July 1, 2022, and in the case of any consumer loan under current law. The bill also creates a new small, supervised loan structure under the UCCC. The IMBA monitored the bill as it progressed through the process and was neutral on the provision within the bill.
Latest action
The bill failed in the Senate on a third reading vote, but it was brought back due to a lack of a majority. The bill did pass the Senate on its second third reading vote and is awaiting committee assignment in the House. Rep. Chris Judy is the House sponsor.
Learn more about SB 352
SB 357 - Acceptance of Electronic Conveyance Documents
Sen. Liz Brown (R-District 15)
What you need to know
The bill provides that a county recorder, auditor, or assessor may not refuse to accept or endorse a document because the document is an electronic document. The IMBA has heard from members regarding the difficultly in recording electronically executed documents in certain jurisdictions. As a result, the IMBA is in SUPPORT of this legislation.
Latest action
The bill passed the Senate and has been assigned to the House Local Government Committee.
Learn more about SB 357
SB 358 – Personal Information and Social Media Policies
Sen. Liz Brown (R – District 15)
What you need to know
As drafted, this would place new burdensome requirements on all Indiana financial institutions for the management of customer data. The bill author worked with the IMBA to find a solution to industry concerns. The current version of the bill exempts institutions from the bill that are regulated under the Graham-Leach-Bliley Act data protection standards.
Latest action
The bill passed the Senate as amended and is awaiting committee assignment in the House. Rep. Robert Morris is the House sponsor.
Learn more about SB 358
SB 370 - Community Infrastructure Improvement Districts
Sen. Brian Buchanan (R-District 7)
What you need to know
The bill establishes a concept of economic improvement districts where the designated properties may approve the application of a special assessment that would be used to establish bonds for payment of broad economic development projects. The special assessment originally had priority over a lenders interest. The IMBA worked to ensure that a lender’s interest/lien remains priority. The current bill reflects this change.
Latest action
The bill passed the Senate as amended and is awaiting committee assignment in the House. Rep. Matt Lehman is the House sponsor.
Learn more about SB 370
SB 371 – Replacement of the London Interbank Offered Rate
Sen. Andy Zay (R–District 17)
What you need to know
The IMBA is in SUPPORT of the bill. The bill provides protection for lenders prescribing that Secured Overnight Funding Rate is the default alternative reference interest rate for existing contracts where no alternative rate other than LIBOR is provided. The language in the bill mirrors what was passed in New York and Alabama legislatures in 2021. The IMBA worked with Sen. Zay on the legislation.
Latest action
The bill passed a third reading vote in the Senate 46-0. The House sponsor is Rep. Martin Carbaugh. The bill has been assigned to the House Financial Institutions and Insurance Committee.
Learn more about SB 371
HB 1001 – Administrative Authority
Rep. Matt Lehman (R – District 79)
What you need to know
The bill is divided into two main parts. The first part places in statute language that is needed to claim certain enhanced federal matching funds available to the Medicaid program in the absence of an executive order. The second part places new requirements on employers that mandate vaccinations as a condition of employment. The IMBA is concerned about the impact and costs these new requirements will have on financial institutions.
Latest action
The bill was amended and passed out of the House 58-35. It has now been referred to the Senate for consideration. The Senate sponsors are Sen. Mark Messmer and Sen. Ed Charbonneau.
Learn more about HB 1001
HB 1048 - Sheriff's Sale in Mortgage Foreclosure Action
Rep. Sean Eberhart (R – District 57)
What you need to know
The bill prohibits certain persons and entities from purchasing a tract at a sheriff's sale, following the same verbiage already in tax sales. The bill also raises the amount that a sheriff can charge for administrative fees from $200 to $350. The fee was originally set at $500. The IMBA continues to express concern over the increase in the fee and is working to lower the fee to more acceptable level in line with inflation.
Latest action
The bill passed the House and was assigned to the Senate Local Government Committee.
Learn more about HB 1048
HB 1083 – Tax and Fiscal Matters
Rep. Jeff Thompson (R – District 28)
What you need to know
The bill included language that would have applied sales tax to all service-based transactions. The application would have included all transactions made through a financial institution. The IMBA is OPPOSED to applying a service-based sales tax on financial institutions. The bill was heard in the House Ways and Means Committee, but it was never voted out.
Latest action
The bill is dead as a result of missing the committee report deadline.
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