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Indiana State Legislative Update January 13, 2021

January 13, 2021 12:06 PM | Wendy Bayley (Administrator)


The Indiana General Assembly opened the 2021 session on Monday, Jan. 4. It has been a slow start, due to precautions implemented by both chambers to mitigate pandemic risk. For example, the House is currently restricting its meeting days to Thursdays only, and all committees – both House and Senate – have limited opportunity to host meetings because of space restrictions. The slowed pace will likely continue at least through the next few weeks as lawmakers adapt to continued risks.

Significantly, the first two committee hearings of session heard key bills important to the Indiana banking community. The House Judiciary Committee met to hear, and ultimately pass, House Bill 1056. This bill fixes the second-witness issue created from Senate Enrolled Act 340 from the 2020 session. The Senate Judiciary Committee met to hear Senate Bill 1, the Senate’s version of business immunity from COVID-19 liability lawsuits. The IMBA supports both of these key bills, which are time-sensitive and a priority for many lawmakers.

The IMBA Legislative Team continues to review bills as they are introduced, and we expect a significant number to be released over the coming weeks. Stayed tuned to upcoming Insighter as we preview legislation that is of significance to our industry.


SB 74 – Workplace Immunization Prohibition
Sen. Dennis Kruse (R-Auburn)

Why it matters
There has been much discussion recently regarding whether businesses can lawfully require their employees to be vaccinated for COVID-19. The bill would prohibit, as a condition of employment, requiring employees to be vaccinated for COVID-19 if the immunization is medically contraindicated, or potentially harmful for the employee because of current health conditions. The bill would also prohibit the requirement to be immunized based on an employee’s or prospective employee’s religious beliefs or conscious.

Latest action
The bill was assigned to the Senate Committee on Pensions and Labor and is currently awaiting a hearing.

Learn more about SB 74

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

Sen. Mark Messmer (R-Jasper)

Rep. Jerry Torr (R-Carmel)

Why it matters
SB 1 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 was heard in the Senate Judiciary Committee on Jan. 6, where the committee took testimony and held the bill. The IMBA was present and testified in support of the legislation. The bill has been rescheduled for a hearing on Jan. 13. HB 1002 is scheduled for a hearing in the House Judiciary Committee on Jan. 12.

Learn more about SB 1

Learn more about HB 1002

HB 1038 – Septic System Inspection Before Property Transfer

Rep. Mike Aylesworth (R-Hebron)

Why it matters
Provides that if a dwelling is connected to a residential onsite sewage system, the residential onsite sewage system must be inspected by a qualified inspector and mitigated completely before a property can be transferred. The IMBA is concerned about the impact this bill would have on the transfer of property and creates new challenges in the real estate marketplace.

Latest action
The bill was assigned to the House Committee on Environmental Affairs and is currently awaiting a hearing.

Learn more about HB 1038

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. The bill also retroactively applies the language to all instruments recorded after July 1, 2020. The IMBA is in support of the legislation.

Latest action
The bill was heard in the House Judiciary Committee on Jan. 6. The IMBA was present and testified in support of the legislation. A technical amendment was added, and the committee passed the bill with unanimous support.

Learn more about HB 1056

Contact Us:

@ Indiana Mortgage Bankers Association

19359 Alpine Drive

Lawrenceburg, IN  47025

Office: (812) 537-1003


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