Indiana State Legislative Update February 15, 2022

February 15, 2022 11:21 AM | Wendy Bayley (Administrator)

STATEHOUSE SUMMARY

The General Assembly started the second half of session this week. Committees were already actively hearing and amending bills, and they only have this week and next to hear, amend and move any bills still sitting in committee. The IMBA was active this past week as several bills of note were heard in committee. The IMBA worked to amend one bill and protect the work already done in the first half on several other bills from further changes


BILLS TO WATCH

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 $300. 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 a more acceptable level in line with inflation. The bill was also amended to include language that prohibited certain buyers from bidding at sheriff sales if they are delinquent on taxes or fall under other provisions. That language was pulled from the tax sale statute. The IMBA included an amendment that would not preclude the foreclosing lender from falling under the prohibited statutes.

Latest action

The bill was heard in the Senate Local Government Committee on Feb. 10. It was voted out of committee as amended. It has been reassigned to the Senate Tax and Fiscal Committee.

Learn more about HB 1048


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 was heard in the House Financial Institutions and Insurance Committee on Feb. 8. It was voted out of committee and is eligible for second reading amendments by the full House.

Learn more about SB 371


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 electronic. The IMBA has heard from members regarding the difficulty in recording electronically executed documents in certain jurisdictions. As a result, the IMBA is in support of this legislation.

Latest action
The bill was heard in the House Local Government Committee on Feb. 9. It was voted out of committee and is eligible for second reading amendments by the full House.

Learn more about SB 357


SB 361 - Economic Development

Sen. Ryan Mishler (R-District 9)

What you need to know

This bill is the annual Indiana Economic Development Corporation bill. The bill makes certain amendments to the Hoosier Business Investment (HBI) tax credit, the Economic Development for a Growing Economy (EDGE) tax credit, the Headquarters Relocation Tax Credit, and the Redevelopment Tax Credit beginning July 1, 2023. In addition, the bill establishes an Innovation Development District Program beginning July 1, 2023. It establishes the Innovation Development District Fund administered by the IEDC. It provides for the transfer of incremental tax revenue in a district to the fund. It also provides that the IEDC may make grants, loans, or investments from the fund for specified economic development purposes.

Latest action
The bill was heard in the House Ways and Means Committee on Feb. 10. The bill was held and is expected to be brought back for amendments.

Learn more about SB 361


HB 1092 - Business Association Matters

Rep. Bob Heaton (R-District 46)

What you need to know
The bill comes from the Securities Division of the Indiana Secretary of State’s Office. The introduced version of the bill contained restrictive language regarding first lien mortgage lenders. The bill also included language that required additional requirements on financial institutions regarding internal referrals for investment advice. The IMBA worked with the Secretary of State’s Office to amend both provisions. The IMBA also included an amendment updated the Uniform Commercial Code as it related to providing financing statements for debtors.

Latest action
The bill was heard in the Senate Commerce and Technology Committee on Feb. 10. It was voted out of committee and is eligible for second reading amendments by the Senate.

Learn more about HB 1092


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