• May 03, 2021 12:09 PM | Wendy Bayley (Administrator)

    Indiana General Assembly Recesses for 2021

    Legislation That Passed the 2021 Indiana General Assembly - Continued

    SEA 400 – Statewide Electronic Lien and Title System

    Author: Sen. Chris Garten, R-Charlestown

    House Sponsor: Rep. Jim Pressel, R-Rolling Prairie

    Bill summary

    Requires the Bureau of Motor Vehicles to implement a statewide electronic lien and title system (system) to process: (1) vehicle titles; (2) certificate of title data in which a lien is notated; and (3) the notification, maintenance and release of security interests in vehicles; through electronic means instead of paper documents. Provides that the BMV may: (1) contract with one or more qualified vendors to develop and implement a system; or (2) develop an interface to provide qualified electronic lien service providers secure access to data to facilitate the creation of a system. Sets forth certain requirements that apply if the bureau elects to implement the system through a qualified vendor versus through qualified electronic lien service providers. Specifies that a contract entered into between the BMV and: (1) a qualified vendor; or (2) a qualified electronic lien service provider; may not provide for any costs or charges payable by the bureau to the qualified vendor or the qualified electronic lien service provider. Sets forth dates by which the BMV must implement and allow or require the use of: (1) a statewide electronic lien system; and (2) a statewide electronic title system. Sets forth certain conditions that apply to the use of a statewide electronic lien system implemented by the BMV under these provisions. Provides that under certain circumstances, the bureau may not charge state agencies or their agents with certain fees associated with the statewide electronic lien and title system. Authorizes the bureau to adopt rules, including emergency rules, to implement these provisions.

    Why it matters

    SEA 400 requires the Bureau of Motor Vehicles to implement a statewide electronic lien and title system to process: (a) vehicle titles; (b) certificate of title data in which a lien is notated; and (c) the notification, maintenance and release of security interests in vehicles; through electronic means instead of paper documents. The bill requires the use of this system for liens starting July 1, 2022, and for titles starting July 1 ,2023, for all entities that are part of the transaction, including lenders. The IMBA worked closely with the author of the legislation and had no objections to the mandated use of these systems based on the positive benefit of the electronic lien and title process for lenders.

    What happened

    The bill passed the General Assembly and was signed by the governor.


    HEA 1001 – State Budget

    Author: Rep. Tim Brown, R-Crawfordsville

    Senate Sponsor: Sen. Ryan Mishler, R-Bremen

    Bill summary

    This bill appropriates money for capital expenditures, the operation of the state, K-12 and higher education, the delivery of Medicaid and other services, and various other distributions and purposes. The bill also makes a number of other changes. Those more relevant to financial institutions are listed below.

    Regional Economic Acceleration and Development Fund: The bill establishes the READI fund to provide grants and loans to support economic development and regional economic acceleration and development. It provides that the Indiana Economic Development Corporation shall administer the fund. It also requires the IEDC to establish a policy for the Regional Economic Acceleration and Development Initiative. The bill repeals the Regional Cities Development Fund.

    Internal Revenue Code: The bill provides certain add backs and subtractions used in determining Indiana adjusted gross income. It changes the definition of “Internal Revenue Code” in the adjusted gross income tax law to mean the Internal Revenue Code of 1986 as amended and in effect on March 31, 2021. The bill provides that in the case of an amendment to a federal statute that is made outside of Title 26 of the U.S. Code and affects federal adjusted gross income, federal taxable income, federal tax credits or other federal tax attributes, the federal statute shall be considered to be part of the Internal Revenue Code as amended and in effect on March 31, 2021.

    Venture Capital Investment Tax Credit: The bill amends the venture capital investment tax credit to apply to taxpayers that provide qualified investment capital to certain qualified Indiana investment funds (qualified fund). The bill provides that the IEDC may only certify a fund as a qualified fund if the fund meets the definition of a venture capital fund under federal regulations, and the fund makes investments according to specified policy requirements and priorities. The bill provides that a taxpayer may not claim a credit certified with regard to a qualified fund before July 1, 2023. It specifies the maximum available tax credits in a calendar year with regard to a qualified fund. It also increases the maximum available tax credits in a calendar year with regard to qualified Indiana businesses under current law, including an additional increase in the maximum amount if the qualified Indiana business is a minority business enterprise or a women’s business enterprise. It caps the total amount of credits that the IEDC may award in a calendar year at $20 million, provided that not more than $7.5 million is awarded for proposed investments in a qualified fund.

    Hoosier Business Investment Tax Credit: The bill provides that, in the case of the Hoosier business investment tax credit, the IEDC may under a written agreement accelerate payment (at a discounted amount) of any unused excess tax credit that certain taxpayers would otherwise be eligible to carry forward to a subsequent tax year. It provides that a written agreement for an accelerated payment may include a provision for liquidated damages: (1) for failure to comply with the terms and conditions for the tax credit; (2) that are in addition to any tax assessment the Department of Revenue may make for noncompliance; and (3) in the case of a partnership, S corporation or similar pass-through entity, that are personally guaranteed by the partners, shareholders or members of the pass-through entity. It provides that the total amount of accelerated tax credits that the IEDC may approve may not exceed $17 million in a state fiscal year.

    Foster Care Support Tax Credit: The bill provides a tax credit against adjusted gross income tax and financial institutions tax liability for monetary contributions to a qualifying foster care organization equal to 50% of the amount of the contribution, but not to exceed $10,000 for a taxable year. It defines a “qualifying foster care organization.” It also caps the total amount of the tax credits allowed in any state fiscal year to $2 million and sunsets the tax credit on July 1, 2025.

    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, including an enhancement of the Venture Capital Investment Tax Credit, the creation a program similar to Regional Cities titled Regional Economic Acceleration and Development Initiative (READI) and language that brings the Indiana tax code up-to-date with federal tax code changes made in 2020. The bill may also incorporate federal tax provisions that are decoupled from state tax code for purposes of liability. The Department of Revenue added a provision that will reduce net operating loss deductions available to individual taxpayers as related to pass-through entities.

    What happened

    The bill passed the General Assembly and was signed by the governor.


    See: Indiana State Legislative Update May 3, 2021 -  Part 3

  • May 03, 2021 11:58 AM | Wendy Bayley (Administrator)

    Indiana General Assembly Recesses for 2021

    Successful Session in Face of Outside Challenges

    The Indiana General Assembly concluded a historic and unusual session on April 22, one week earlier than the originally set date of April 29. As of late last year, leadership in both the House and Senate were working through the details of how a legislative session would functionally operate during the pandemic. Ultimately, lawmakers were able to conduct business with certain measures in place to reduce the risk of exposure for both lawmakers and the general public. Most notably, the House Chamber was relocated to a larger space in the Indiana Government Center South. The Senate Chamber closed its public gallery and moved the senators’ voting desks to that location to provide for adequate distancing. Committee hearings took place remotely, based on space accommodations, or in larger rooms when available. As a result, legislators navigated the external challenges of the pandemic to achieve a successful session.

    Technically, lawmakers recessed the 2021 session with the intent to come back into session later in the year to address redistricting. The redistricting process is completed legislatively and utilizes U.S. census data when establishing new legislative districts. Once lawmakers are in possession of all necessary census data, it is anticipated they will return to session later this year to complete the work of redrawing the legislative districts for all House, Senate and congressional districts, a process repeated every 10 years.

    For the session period that recently concluded, 1,025 bills were introduced between both the Senate and House. Of these, 316 bills, or roughly 31% of the bills introduced, survived the first half of session. At the halfway point, the Indiana Mortgage Bankers Association was tracking 74 of the 316 bills that had survived the first half of session. Of those 316 bills that survived to the halfway point of session, only 220 bills were ultimately passed to be sent to the governor’s desk for signature into law.

    Of the bills the IMBA was tracking throughout session are several that will have a direct impact on the industry if and when enacted. The first two bills sent to the governor this session to be signed into law were important to the industry. First, HEA 1056 clarified the issue arising from last session’s SEA 340, through which the change of “or” to “and” imposed a new requirement of a second witness when recording documents. The second bill, SEA 1, provided immunity from civil tort liability to any individual, corporation, organization or entity for damages “arising from COVID-19” which occurred on or after March 1, 2020. Both of these bills were effective immediately upon the governor’s signature, becoming law on Feb. 18.

    In addition to HEA 1056 and SEA 1, the IMBA supported legislation that restated existing law that a deposit account is a contract for the payment of money, which has a six-year statute of limitations (SEA 370). In addition, the state will move to an electronic lien and title system for vehicles under SEA 400. This bill ushers in a long-awaited process that will allow vehicle transactions to occur in a more efficient manner using new technology.

    On a broader COVID-19 relief front, the General Assembly enacted a $60 million Small Business Restart Grant Program eligible for small businesses with a demonstrated loss of more than 30% in revenue in 2020 compared to 2019 and fewer than 100 employees, among other criteria. Businesses are eligible to receive up to $50,000 in support. In terms of economic development, the state created a new economic development fund in the state budget, modeled after the Regional Cities Initiative. The fund, titled Regional Economic Acceleration and Development Initiative (READI), is designed to funnel capital ($500 million appropriation) to communities in a similar manner to the Regional Cities program.

    Finally, each session comes with challenges in the form of bills or legislative ideas that would create significant disruptions to the industry, and this year was no different. The IMBA was successful in advocating to prevent a troubling bill from passing. SB 49 would have created significant liability, both legally and financially, for a lender that chooses not to do business with a gun dealer or manufacturer. The issue is expected to reemerge in upcoming years, and the IMBA will remain involved in the ongoing debate.

    While much has changed as a result of the pandemic, the positive impact the Indiana General Assembly has had on the Indiana mortgage banking industry has remained strong. The IMBA extends special thanks to the many legislators and mortgage bankers who worked toward satisfactory outcomes on issues of concern to the industry. The effort and engagement put forward by so many ensures Indiana continues to be a state in which we can serve customers well and positively impact Indiana communities and the broader economy.


    Legislation That Passed the 2021 Indiana General Assembly

    SEA 1 – Civil Immunity Related to COVID-19

    Author: Sen. Mark Messmer, R-Jasper
    House Sponsor: Rep. Jerry Torr, R-Carmel

    Bill summary

    Provides civil tort immunity for damages arising from COVID-19 on the premises owned or operated by a person, on any premises on which the person or an employee or agent of the person provided property or services to the individual, or during an activity managed, organized or sponsored by the person, except for an act or omission that constitutes gross negligence or willful or wanton misconduct (including fraud and intentionally tortious acts). Defines “COVID-19 protective product” and provides civil tort immunity for harm that results from the design, manufacture, labeling, sale, distribution or donation of a COVID-19 protective product, except for an act or omission that constitutes gross negligence or willful or wanton misconduct (including fraud and intentionally tortious acts). Prohibits class action suits.

    Why it matters
    SEA 1 is a broadly applied immunity bill from COVID-19 liability supported by a coalition of business trades and other individual entities. The IMBA supported the general approach to provide immunity to businesses from COVID-19-related lawsuits.

    What happened

    The bill passed the General Assembly and was signed by the governor.


    SEA 332 – Publication of Notice by Political Subdivisions

    Author: Sen. Jim Buck, R-Kokomo
    House Sponsor: Rep. Doug Miller, R-Elkhart

    Bill summary

    Allows a political subdivision, when required by statute to publish a notice two or more times, to make the first publication of notice in a newspaper and any subsequent publications of the notice on the official website of the political subdivision. Requires the political subdivision or contractor that maintains the political subdivision’s official website to provide proof of publication of the notice on the official website. 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).

    Why it matters
    Among other publication changes, the bill originally provided 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). The bill also sets up an optional procedure for the sheriff to post the publication once in a local newspaper and twice on a county-run website, instead of three times in the newspaper as under current law. The IMBA supports legislation that identifies more cost-effective options for the borrower and the lender regarding publication costs.

    What happened
    The bill passed the General Assembly and awaits the governor’s signature.


    SEA 346 – Financial Institutions and Consumer Credit

    Author: Sen. Eric Bassler, R-Washington

    House Sponsor: Rep. Martin Carbaugh, R-Fort Wayne

    Bill summary

    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 a credit union to the credit union’s 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.”

    Why it matters
    SEA 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 supported the general intent of the legislation, but did not support the alignment of the credit union loan provision with federal regulations.

    What happened
    The bill passed the General Assembly and was signed by the governor.


    SEA 383 – Various Tax Matters

    Author: Sen. Travis Holdman, R-Markle

    House Sponsor: Rep. Tim Brown, R-Crawfordsville

    Bill summary

    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 Indiana Department of Revenue. Provides a sales tax exemption for a utility scale battery energy storage system. Provides a sales tax exemption for public safety equipment and materials. 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. Provides that the DOR may prescribe procedures: (1) by which a pass-through entity remits tax; (2) for persons or entities that are otherwise subject to withholding but that may have circumstances such that standard tax computation may result in excess withholding; (3) for individuals and trusts that are residents for part of the taxable year and nonresidents for part of the taxable year; and (4) by which an entity may request alternative withholding arrangements.

    Requires the daily parimutuel breakage on wagers to be paid to the DOR, instead of the auditor of state, for deposit in the appropriate breed development fund. Requires a utility provider to maintain records sufficient to document each one-to-one meter change. Allows a person to request that the DOR reissue an exemption certificate with a new meter number in the event of a one-to-one meter change. Removes duplicate provisions regarding electronic filing requirements for sales tax and withholding tax remittance. Removes certain unnecessary information currently required for employer withholding tax reporting forms. 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. Clarifies that an individual’s estimated income tax filing and payment requirements include local income taxes. Clarifies the penalty calculation for failure to make estimated tax payments, including estimated utility receipts tax and financial institutions tax payments. 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 (provides for retroactive application to tax years beginning after Dec. 31, 2016).

    Sets a floor on the periodic change in the gasoline tax and the special fuel tax rates each year of not less than the rates in the preceding year. Provides that the fee to register a trailer that is registered under the International Registration Plan shall be prorated based on the Indiana mileage percentage of the registrant’s trucks and tractors registered under the IRP. Allows the DOR to release the name and business address of a person who is issued a retail merchant’s certificate for the purpose of reporting the status of the person’s certificate. 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 waste tire management fee; (2) the fireworks public safety fee; (3) the prepaid wireless service charge.

    Provides that a township trustee casts the deciding vote to break a tie vote in the new township board, except for a tie vote on increasing the township trustee’s compensation. Makes a clarifying change to redevelopment tax credit provisions. Delays the expiration of provisions providing that a local income tax council for a county with a single voting bloc must vote as a whole in order to exercise its authority to increase (but not decrease) a local income tax rate in the county.

    Why it matters

    This bill is the annual Department of Revenue tax bill. It contains a number of changes to Indiana’s tax code related to both the corporate and Financial Institutions Tax. This includes 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. The bill also provides that the DOR may prescribe procedures: (1) by which a pass-through entity remits tax; (2) for persons or entities that are otherwise subject to withholding but that may have circumstances such that standard tax computation may result in excess withholding; (3) for individuals and trusts that are residents for part of the taxable year and nonresidents for part of the taxable year; and (4) by which an entity may request alternative withholding arrangements. The IMBA monitored the legislation for adverse impacts on financial institutions and did not have concerns with the language as passed.

    What happened

    The bill passed the General Assembly and awaits the governor’s signature.


    See:  Indiana State Legislative Update May 3, 2021 - Part 2

  • April 26, 2021 12:11 PM | Wendy Bayley (Administrator)

    STATEHOUSE SUMMARY

    The Indiana General Assembly marked the end of session last Thursday – not with the traditional sine die adjournment, but rather with a long recess. Lawmakers granted extra time to session due to delays in receiving the federal census data needed to draw new legislative districts, a process that must occur every 10 years. The new timeline officially ends the 2021 Indiana legislative session by Nov. 15.  Once the census data is available and session resumes, it is expected that lawmakers will judicially limit activity to redistricting. Apart from the extension, almost all legislative activity occurred within the normal time frame for a budget year, concluding activity by the end of April.

    Lawmakers worked long hours last week right up until the final bill – House Enrolled Act 1001, State Budget – was passed by both the House and Senate, marking the end to another successful session. Notably, HEA 1001 passed the House by a vote of 96-2 and the Senate by a vote of 46-3. This two-year operating budget appropriates more than $36 billion, and lawmakers anticipate that Indiana will end this two-year period with a reserve of over $2.8 billion. The budget bill included several items of significance to the industry, including a new main street economic development program (READI) modeled after the Regional Cities concept. This new program starts with a $500 million appropriation. In addition, the bill expanded the application of the Venture Capital Investment Tax Credit and its administration under the Indiana Economic Development Corp.

    Please watch for the full IMBA Legislative Summary for the 2021 legislative session later this week. 

  • April 19, 2021 1:38 PM | Wendy Bayley (Administrator)

    STATEHOUSE SUMMARY

    Just a few working days remain for the regular 2021 Indiana legislative session. The planned target date for conclusion of work of the general assembly is Wednesday, April 21. However, due to a delay in census data, lawmakers will have to return to session later this year to enact redistricting legislation, a process that occurs every 10 years.

    The final days of session will be reserved solely for conference committee work, a process of reconciliation between changes that the House and Senate made to the respective chamber’s bills and final votes on bills after the conference committee process. Noteworthy legislation that still requires work before passage includes HB 1001 (State Budget) and SB 5 (Local Health Departments; Public Health Emergencies), among others.

    Specific to the industry, SB 332 (Publication of Notice by Political Subdivisions) will be eligible for final votes before both the Senate and House after additional changes were made to the bills in conference committee.


    BILLS TO WATCH

    SB 275 – Property Tax Matters (Bill Includes SB 236 Land Banks)

    Sen. Eddie Melton (D-Gary)

    Rep. Tim Brown (R-Crawfordsville)

    Why it matters

    The conference committee report on this bill included SB 236, the land bank bill that has been moving through session. The land bank bill provides that a county fiscal body may adopt an ordinance requiring that, for the five years after a tract is purchased from a land bank, 50% of the amount of property taxes paid on the tract must be transferred to the land bank. It requires a county executive to provide a land bank in the county with a list of tracts located in the territory of the land bank that: (1) are delinquent on property taxes; and (2) have been offered for public sale at least two times and remain unsold; on an annual basis, and permits the county executive to transfer its interest in a tract on the list to a land bank if requested by the land bank no later than 30 days after it receives the list. The IMBA Legislative Team has been monitoring the legislation.

    Latest Action

    A conference committee was held last week in which the report on SB 275 included the language in SB 236. A conference committee report has not been adopted.

    Learn more about SB 275

    Learn more about SB 236


    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 originally provided 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). The bill also sets up an optional procedure for the sheriff to post the publication once in a local newspaper and twice on a county-run website, instead of three times in the newspaper as under current law. This stated requirement was amended out of the bill, leaving all other notices except sheriff’s sale with the ability to utilize the new provision. The IMBA generally supports legislation that identifies more cost-effective ways for the consumer and the lender regarding publication costs and advocated that the provision be placed back into the bill. The provision was amended back into the bill in conference committee.

    Latest action

    The bill received a hearing in conference committee and will now be eligible for votes by the entire House and Senate this week.

    Learn more about SB 332


    SB 383 – Various Tax Matters

    Sen. Travis Holdman (R-Markle)

    Rep. Tim Brown (R-Crawfordsville)

    Why it matters

    This bill is the annual Department of Revenue tax bill. It contains a number of changes to Indiana’s tax code related to both the corporate and financial institutions tax. This includes 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. The bill also provides that the DOR may prescribe procedures: (1) by which a pass through entity remits tax; (2) for persons or entities that are otherwise subject to withholding but that may have circumstances such that standard tax computation may result in excess withholding; (3) for individuals and trusts that are residents for part of the taxable year and nonresidents for part of the taxable year; and (4) by which an entity may request alternative withholding arrangements. The IMBA is monitoring the legislation.

    Latest action

    A conference committee was held on the bill last week. The bill is now awaiting final approval by both the House and Senate.

    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, including 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 bill may also incorporate federal tax provisions that are decoupled from state tax code for purposes of liability. The IMBA Legislative Team is monitoring the budget as it is amended through the final stage of the process.

    Latest action

    The bill was heard in conference committee last week. A final report is expected to be released this week.

    Learn more about HB 1001

  • April 12, 2021 11:27 AM | Wendy Bayley (Administrator)

    STATEHOUSE SUMMARY

    This past week marked the final week of committee work for the regular 2021 Indiana legislative session. Today and tomorrow bring key deadlines for all remaining legislation. Bills must move from second reading today and must pass a full chamber third-reading vote by the end of tomorrow, April 13. The end of this week and next week will be largely reserved for conference committee work, a process of reconciliation between changes that the House and Senate made to the respective chamber’s bills.

    This session is expected to conclude all legislative activity by April 21. However, lawmakers will have to return to session later this year to enact redistricting legislation, a process that occurs every 10 years based on recent census data. Notably, the most recent version of the State budget contains language that delays the end of session until Nov. 15. Despite this new date, it is still expected that legislative activity will wrap up by April 21. The IMBA Legislative Team continues to monitor legislation for any possible concerns.


    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 provision was amended back into the bill last week in conference committee.

    Latest action

    The bill received a hearing in conference committee last Thursday and will now be eligible for votes by the entire House and Senate in the coming weeks.

    Learn more about SB 332


    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, including 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.

    Latest action

    The bill was amended in the Senate Appropriations Committee on April 8. It is now eligible for second-reading amendments.

    Learn more about HB 1001


    HB 1004 – Small Business Restart Grant Program

    Rep. Shane Lindauer (R-Jasper)

    Sen. Ryan Mishler (R-Bremen)

    Why it matters

    The bill establishes the Hoosier Hospitality Small Business Restart Grant Program to provide grants to eligible entities based on certain conditions. An eligible entity may apply for a grant under the program for a reimbursement of up to 80% of non-payroll business expenses and up to 100% of payroll expenses incurred in Indiana between March 1, 2020, and April 1, 2021. The amount of a grant to an eligible entity is not to exceed $10,000 for each month during the identified period that the entity can demonstrate a monthly gross revenue loss of at least 30% when compared to that entity’s average monthly gross revenue for calendar year 2019. The maximum total grant amount awarded to any eligible entity may not exceed $50,000. The program is to be administered by the Indiana Economic Development Corporation.

    Latest action

    The bill was concurred upon by the House author and received a concurrence vote in the House on April 5, passing by a vote of 94-3. It is now eligible to be signed by the governor into law.

    Learn more about HB 1004


    HB 1462 – Secretary of State Securities Division Matters

    Rep. Bob Heaton (R-Terre Haute)

    Sen. Travis Holdman (R-Markle)

    Why it matters

    The bill is the annual Indiana Securities Division legislation. The bill amends IC 23-19-4-12 to clarify that Indiana securities registrants are subject to current data breach disclosure requirements of IC 24-4.9 and may be subject to discipline for failure to comply. The bill also creates a new section to clarify that a federally registered mortgage loan originator is exempt from state licensure under the Indiana Loan Broker Act. The bill makes several other changes as well. The IMBA is monitoring the bill.

    Latest action

    The bill passed the Senate on third reading by a vote of 47-0 on April 8. It now awaits a concurrence or dissent by the House author.

    Learn more about HB 1462


  • April 05, 2021 1:50 PM | Wendy Bayley (Administrator)

    STATEHOUSE SUMMARY

    This week marks the final week for committee hearings for the 2021 legislative session. Most of committee work has been completed at this point, but committees may still meet to consider any bills left. If a bill does not get a hearing and pass a committee by end-of-day this Thursday, it will have failed to advance by the committee report deadline.

    As committee work winds down for the second half of session, the table is set for the final two weeks of legislative activity. With the end of session slated for April 21, there is still plenty of work to be conducted. Notably, the state’s biennial budget will get the most attention over the coming weeks, with a decision to be made on how to spend the $3 billion in federal COVID-19 relief funds.

    The IMBA Legislative Team continues to monitor legislative activity as it relates to the banking industry.


    BILLS TO WATCH

    SB 197 – Criminal Law Issues

    Sen. Michael Young (R-Indianapolis)

    Rep. Greg Steuerwald (R-Danville)

    Why it matters

    This omnibus criminal law matters bill consolidates Indiana’s fraud statutes, including those against a financial institution, into a board definition. The IMBA previously worked with the author to make technical changes to the language to ensure that the language in SB 197 continues to provide Indiana’s prosecutors the same, if not better, tools in enforcing penalties against those who commit crimes against financial institutions. The IMBA Legislative Team continues to monitor this legislation.

    Latest action

    The bill was amended in the House Committee on Courts and Criminal Code on March 31. The amended bill preserves the fraud language that was in the bill as it left the Senate. The committee passed the bill by a vote of 11-1.

    Learn more about SB 197


    SB 236 – Land Banks

    Sen. Tim Lanane (D-Muncie)

    Rep. Sue Errington (D-Muncie)

    Why it matters

    The bill provides that a county fiscal body may adopt an ordinance requiring that, for the five years after a tract is purchased from a land bank, 50% of the amount of property taxes paid on the tract must be transferred to the land bank. It requires a county executive to provide a land bank in the county with a list of tracts located in the territory of the land bank that: (1) are delinquent on property taxes; and (2) have been offered for public sale at least two times and remain unsold; on an annual basis, and permits the county executive to transfer its interest in a tract on the list to a land bank if requested by the land bank no later than 30 days after it receives the list. The IMBA is monitoring the legislation.

    Latest action

    The bill passed the House Committee on Local Government on March 17. The bill was reassigned to the House Committee on Ways and Means and was heard in that committee on March 31. The bill was held for amendments next week.

    Learn more about SB 236


    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.

    Latest action

    The bill passed the House third reading without the sheriff sale publication language. The bill is eligible to be dissented upon by the Senate author.

    Learn more about SB 332


    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, including 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.

    Latest action

    The bill was assigned to the Senate Appropriations Committee and was heard on April 1, but was held for amendments this week.

    Learn more about HB 1001


    HB 1462 – Secretary of State Securities Division Matters

    Rep. Bob Heaton (R-Terre Haute)

    Sen. Travis Holdman (R-Markle)

    Why it matters

    The bill is the annual Indiana Securities Division legislation. The bill amends IC 23-19-4-12 to clarify that Indiana securities registrants are subject to current data breach disclosure requirements of IC 24-4.9 and may be subject to discipline for failure to comply. The bill also creates a new section to clarify that a federally registered mortgage loan originator is exempt from state licensure under the Indiana Loan Broker Act. The bill makes several other changes as well. The IMBA is monitoring the bill.

    Latest action

    The bill passed the House on third reading by a vote of 94 -2. Sen. Travis Holdman has been assigned as the bill sponsor, and the bill has been assigned to the Senate Committee on Insurance and Financial Institutions.

    Learn more about HB 1462


  • March 29, 2021 4:47 PM | Wendy Bayley (Administrator)

    STATEHOUSE SUMMARY

    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.

    Latest action

    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.

    Latest action

    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.

    Latest action

    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.

    Latest action

    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.

    Latest Action

    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


  • March 24, 2021 10:36 AM | Wendy Bayley (Administrator)

    STATEHOUSE SUMMARY

    As the basketball world converges on the Circle City for the NCAA tournament, the Indiana General Assembly continues to work through the second half of session. Roughly three weeks remain for committee work to be conducted. That timeline could shrink, as many believe that the legislature could adjourn session for the year earlier than the originally scheduled date of April 29. The IMBA Legislative Team continues to stay engaged in several bills that are working their way through the process for the second half of session. 

    BILLS TO WATCH

    SB 236 – Land Banks

    Sen. Tim Lanane (D-Muncie)

    Why it matters

    The bill provides that a county fiscal body may adopt an ordinance requiring that, for the five years after a tract is purchased from a land bank, 50% of the amount of property taxes paid on the tract must be transferred to the land bank. It requires a county executive to provide a land bank in the county with a list of tracts located in the territory of the land bank that: (1) are delinquent on property taxes; and (2) have been offered for public sale at least two times and remain unsold; on an annual basis, and permits the county executive to transfer its interest in a tract on the list to a land bank if requested by the land bank no later than 30 days after it receives the list. The IMBA is monitoring the legislation.

    Latest Action

    The bill passed the House Committee on Local Government on March 17. The bill has been reassigned to the House Committee on Ways and Means.

    Learn more about SB 236


    SB 332 – Publication of Notice by Political Subdivisions

    Sen. Jim Buck (R-Kokomo)

    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). The IMBA generally supports legislation that identifies more cost-effective ways for the consumer and the lender regarding publication costs related to sheriff sales.

    Latest action

    The bill has been assigned to the House Committee on Government and Regulatory Reform.

    Learn more about SB 332


    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 House Committee on Financial Institutions and Insurance on March 23. The bill passed the committee by a vote of 13-0.

    Learn more about SB 346


    HB 1004 – Small Business Restart Grant Program

    Rep. Shane Lindauer (R-Jasper)

    Why it matters

    The bill establishes the Hoosier Hospitality Small Business Restart Grant Program to provide grants to eligible entities based on certain conditions. An eligible entity may apply for a grant under the program for a reimbursement of up to 80% of non-payroll business expenses and up to 100% of payroll expenses incurred in Indiana between March 1, 2020, and April 1, 2021. The amount of a grant to an eligible entity is not to exceed $10,000 for each month during the identified period that the entity can demonstrate a monthly gross revenue loss of at least 30% when compared to that entity’s average monthly gross revenue for calendar year 2019. The maximum total grant amount awarded to any eligible entity may not exceed $50,000. The program is to be administered by the Indiana Economic Development Corporation.

    Latest action

    The bill was amended on second reading last week and will be eligible for a third-reading vote in the Senate this week.

    Learn more about HB 1004

  • March 15, 2021 12:06 PM | Wendy Bayley (Administrator)

    STATEHOUSE SUMMARY

    The Indiana General Assembly worked through last week and held committee hearings on a variety of topics. Committee chairs have until the middle of April to hear and move any bills from their respective committees. The IMBA has been engaged in a handful of bills that have yet to receive committee hearings for the second half of session, and the IMBA continues to be active in discussions surrounding those bills.


    BILLS TO WATCH

    SB 28 – Tax Sales

    Sen. Rick Niemeyer (R-Lowell)

    Why it matters

    Prohibits a person who is delinquent in the payment of personal property taxes or is subject to an existing personal property tax judgment from bidding on or purchasing a tract at a tax sale. Prohibits a business entity from bidding on or purchasing a tract at a tax sale when a person who is prohibited from bidding on or purchasing a tract at a tax sale: (1) formed the business entity; (2) joined with another person or party to form the business entity; (3) joined the business entity as a proprietor, incorporator, partner, shareholder, director, employee, or member; (4) becomes an agent, employee, or board member of the business entity; or (5) represents the business entity in a legal matter. Requires a person to acknowledge that providing false information relating to a prohibited bid or purchase is perjury. Requires a county treasurer to pay all taxes and assessments that accrue on the tract of real estate through the time the record owner is divested of title from the tax sale surplus fund for the tract. Permits a county legislative body to adopt an ordinance prohibiting the assignment of a certificate of sale prior to the issuance of a tax title deed. Adds requirements that must be met within 150 days of the date a court grants a petition to issue a tax deed before a county auditor can issue or record a tax deed. The IMBA is monitoring this bill for potential impact.

    Latest action

    SB 28 is scheduled to be heard in the House Committee on Local Government on March 17.

    Learn more about SB 28


    SB 236 – Land Banks

    Sen. Tim Lanane (D-Anderson)

    Why it matters

    Requires a county executive to provide a land bank in the county with a list of tracts located in the territory of the land bank that: (1) are delinquent on property taxes; and (2) have been offered for public sale at least two times and remain unsold; on an annual basis, and requires the county executive to transfer its interest in a tract on the list to a land bank if requested by the land bank not later than 90 days after it receives the list. The IMBA is monitoring this bill for potential impact.

    Latest action

    SB 236 is scheduled to be heard in the House Committee on Local Government on March 17.

    Learn more about SB 236


    SB 383 – Various Tax Matters

    Sen. Travis Holdman (R-Markle)

    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.

    Latest action

    The bill was heard in the House Committee on Ways and Means on March 10 and held for further discussion.

    Learn more about SB 383


    HB 1123 – State of Emergency; General Assembly Sessions

    Rep. Matt Lehman (R-Berne)

    Why it matters

    HB 1123 establishes a structure for the General Assembly to convene under special sessions following a proclamation by the governor. The bill also allows the General Assembly to convene in an emergency session if the governor declares a state of emergency that affects the entire state. Additionally, the bill outlines whether local orders can be less or more stringent than the governor’s orders. Makes additional changes. HB 1123 was authored as a direct response to the governor’s executive order powers that came under scrutiny by some during the pandemic. The IMBA is monitoring the bill for potential relevant impact.

    Latest action

    The bill was heard in the Senate Committee on Rules and Legislative Procedure on March 11. After hours of testimony, the bill was held for amendments at a later hearing.

    Learn more about HB 1123


    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 was scheduled again to be heard in the Senate Judiciary Committee on March 10, but was held for amendments at a subsequent meeting.

    Learn more about HB 1255

  • March 10, 2021 9:47 AM | Wendy Bayley (Administrator)

    STATEHOUSE SUMMARY

    Last week officially marked the start of the second half of session. During this time, the House considers legislation passed by the Senate during the first half and vice versa. The process matches the procedural requirements of the first half of session. Committee work went off to a slow start during the first week back, as plans for the remainder of session begin.

    Legislative proposals that will be of focus for the General Assembly during the second half include the state’s biennial budget, COVID-19-related economic relief measures and Gov. Eric Holcomb’s executive order powers, among other topics. One issue that has not yet been considered is the drawing of new legislative maps, as required after census data is collected. Because of the delay in census data, the General Assembly will have to reconvene this summer or fall to draw the new maps.

    As the second half of session begins, the IMBA Legislative Team continues to voice banking perspective on critical bills. Following are some of the bills being addressed.


    BILLS TO WATCH

    SB 38 – Adverse Possession Statue of Limitations

    Sen. Blake Doriot (R-Goshen)

    Why it matters

    This bill amends the statute concerning the statute of limitations for actions for the recovery of the possession of real estate to provide that such an action that: (1) involves a line located and established by a professional surveyor; and (2) accrues before the lines are located and established by the surveyor; must be commenced before the expiration of the appeal period set forth in the statute governing county surveyors. Makes other changes to survey requirements. The IMBA continues to monitor this bill for changes.

    Latest action
    The bill was heard in the House Judiciary Committee on March 3 and was held for amendments at a subsequent meeting.

    Learn more about SB 38


    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 was heard in the Senate Judiciary Committee on March 3 and was held for amendments at a subsequent meeting.

    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 permit a person to file a statement or notice that a recorded discriminatory covenant is invalid and unenforceable. The IMBA supports this change in law.

    Latest action

    The bill passed the Senate Judiciary Committee on March 3 by a vote of 8-0 and is now eligible for consideration by the entire Senate.

    Learn more about HB 1314



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