STATEHOUSE SUMMARY

After a week off due to concerns surrounding potential protests at the Indiana Statehouse, lawmakers returned to Indianapolis and promptly resumed their work. This week the legislative calendar was packed with a full slate of committee hearings. As the calendar flips to February, committees will have roughly two weeks to pass bills in order to keep them alive for consideration for the remainder of session.

Several bills important to the banking industry saw action this week. Arguably, HB 1056 is the most impactful bill to date. HB 1056, which fixes the issues that arose last summer requiring a second witness to proof documents for recording, passed the House unanimously, 95-0. Because of its significance, the Senate Judiciary Committee is scheduled to hear HB 1056 on Wednesday, Feb. 3. The goal is to pass the bill quickly and move it to the desk of Gov. Eric Holcomb to be signed into law. HB 1056 would be effective upon the governor’s signature, providing needed relief for the industry.

With the clock winding down on committee work before bills flip to the opposite chamber, the next two weeks will be extremely active and fast-paced. The IMBA Legislative Team continues to engage on important issues, some of which are highlighted below.

BILLS TO WATCH

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 assigned to the Senate Committee on Insurance and Financial Institutions and is scheduled for a hearing on Wednesday, Feb. 3.

Learn more about SB 346

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

Sen. Mark Messmer (R-Jasper)

Rep. Jerry Torr (R-Carmel)

Why it matters
This 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 passed third reading on Jan. 28 by a vote of 40-8. HB 1002 was heard on second reading on Jan. 28 and is awaiting a full third-reading vote.

Learn more about SB 1

Learn more about HB 1002

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. House Bill 1056 also retroactively applies the language to all instruments recorded after July 1, 2020. The IMBA is in support of the legislation.

Latest action
The House Judiciary Committee heard HB 1056 on Jan. 6. The IMBA was present and testified in support of the legislation. The bill was heard on third reading on Jan. 26 and passed 95-0. Sen. Brown has been named the sponsor in the Senate. The bill has been scheduled for a hearing in the Senate Judiciary Committee on Feb. 3.

Learn more about HB 1056

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 passed out of the House Judiciary Committee on Jan. 25.

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 repeal an existing discriminatory covenant.

Latest action
The bill was passed out of the House Judiciary Committee on Jan. 26.

Learn more about HB 1314

STATEHOUSE SUMMARY

The Indiana General Assembly decided not to hold any meetings last week based on anticipated protests stemming from recent events at our nation’s capital. Fortunately, the anticipated protests did not materialize significantly enough to place the Indiana Statehouse in peril. However, lawmakers lost a full week of work for legislative activity. At this point, it is not expected that lawmakers will extend session to recapture this lost time. As a result, lawmakers now have just three full weeks left for committee work before deadlines will kill bills that did not move out of committee.

The vast majority of bills that were scheduled for committee hearings last week have been rescheduled for this week. It is expected that the following two weeks will be extremely active as well, as lawmakers will hurry to move priority bills out of committee. The IMBA will continue to monitor a number of different bills for committee activity.

BILLS TO WATCH

SB 247 – Deceptive Consumer Sales Act

Sen. Ron Alting (R-Lafayette)

Why it matters
Senate Bill 247 is a significant expansion of the damages, and scope, of the Indiana Deceptive Consumer Sales Act. The bill increases the damages from $500 to $2,000 per violation, and from a limit of $1,000 to $6,000 for a “willful” deceptive act. In addition, the bill makes an award of attorney fees against the violator mandatory, as opposed to permissive, by the court and eliminates the requirement that these attorney fees bear any resemblance to the actual work performed by the plaintiff’s counsel. The bill also removes real estate leases from the previously exempt category of real estate transactions currently in the code. The IMBA has significant concerns about the direction of this bill.

Latest action
The bill was assigned to the Senate Judiciary Committee. To date, it has not been scheduled for a hearing.

Learn more about SB 247

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

Sen. Mark Messmer (R-Jasper)

Rep. Jerry Torr (R-Carmel)

Why it matters
This 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 amended to include product liability language and was passed by the Senate Judiciary Committee by a vote of 8-3 on Jan. 13. HB 1002 was heard in the House Judiciary Committee on Jan. 12 and is scheduled for amend and vote on Jan. 25.

Learn more about SB 1

Learn more about HB 1002

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. House Bill 1056 also retroactively applies the language to all instruments recorded after July 1, 2020. The IMBA is in support of the legislation.

Latest action
The House Judiciary Committee heard HB 1056 on Jan. 6. The IMBA was present and testified in support of the legislation. The bill was heard on second reading on Jan. 14. It now awaits a full third reading vote expected to take place on Jan. 26.

Learn more about HB 1056

HB 1219 – Various Housing Matters

Rep. Ed Clere (R-New Albany)

Why it matters
The bill aims to place greater regulations on land contracts for purposes of businesses which engage in more than four land contracts at once. Exempted from the application of these new regulations are depository institutions, first-lien mortgage lenders and subsidiaries of a first-lien mortgage lender. This will make various changes to landlord tenant relations. The IMBA worked to exempt financial institutions and mortgage lenders from the application of this bill.

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

Learn more about HB 1219

HB 1314 – Recorded Discriminatory Covenants

Rep. Jerry Torr (R-Carmel)

Why it matters
Permits a person to file a statement or notice that a recorded discriminatory covenant is invalid and unenforceable. The IMBA supports the legislation.

Latest action
The bill was assigned to the House Judiciary Committee and is scheduled for a hearing on Jan. 25.

Learn more about HB 1314

STATEHOUSE SUMMARY

The second week of the 2021 legislative session ended with an announcement from Gov. Eric Holcomb that, out of an abundance of caution, the state government complex will be closed to the public Tuesday and Wednesday due to recent national events, threats to other state capitols and COVID-19 restrictions. The closure means that there will be no committee hearings or session Monday, Tuesday or Wednesday.

Week two consisted of considerable committee work hearing many bills of interest to the financial services industry. Of note, the House Judiciary Committee heard House Bill 1002, the House version of business immunity from COVID-19 liability lawsuits. The committee planned to amend and vote on the bill, but will have to wait until next week because of the closure of the Statehouse. The Senate Judiciary Committee heard SB 188, which attempts to completely rewrite the state’s unclaimed property law. The IMBA testified on SB 188, expressing concerns with the sweeping changes. The committee plans to amend and vote on the bill after return from break.

Over 1,000 bills have been introduced this session. The IMBA Legislative Team is still reviewing all the bills to determine their impact on the industry. Following are some of the bills already flagged by the IMBA.

BILLS TO WATCH

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, where it was given a hearing last week. After a lengthy debate, the bill was held for further consideration.

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
This 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 amended to include product liability language and was passed by the Senate Judiciary Committee by a vote of 8-3 on Jan. 13. HB 1002 was heard in the House Judiciary Committee on Jan. 12 and held for an amend and vote during a subsequent committee hearing.

Learn more about SB 1

Learn more about HB 1002

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. House Bill 1056 also retroactively applies the language to all instruments recorded after July 1, 2020. The IMBA is in support of the legislation.

Latest action
The House Judiciary Committee heard HB 1056 on Jan. 6. The IMBA was present and testified in support of the legislation. The bill was heard on second reading on Jan. 14. It now awaits a full third reading vote expected to take place on Jan. 21.

Learn more about HB 1056

HB 1219 – Various Housing Matters

Rep. Edward Clere (R-New Albany)

Why it matters
The bill aims to place greater regulations on land contracts for purposes of businesses which engage in more than four land contracts at once. Exempted from the application of these new regulations are depository institutions, first-lien mortgage lenders and subsidiaries of a first-lien mortgage lender. This will make various changes to landlord tenant relations. The IMBA worked to exempt financial institutions and mortgage lenders from the application of this bill.

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

Learn more about HB 1219

HB 1314 – Recorded Discriminatory Covenants

Rep. Jerry Torr (R-Carmel)

Why it matters
Permits a person to file a statement or notice that a recorded discriminatory covenant is invalid and unenforceable. The IMBA is monitoring this legislation.

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

Learn more about HB 1314

STATEHOUSE SUMMARY

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.

BILLS TO WATCH

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

The 2020 General Assembly concluded and a summary of legislation the IMBA was engaged with that passed, as well as those bills that did not, is available to download here.