Indiana State Legislative Update January 24, 2020

January 24, 2020 1:42 PM | Anonymous member (Administrator)

STATEHOUSE SUMMARY

The second week of the 2020 Indiana General Assembly has been a busy one. Committee work is in full swing as lawmakers work quickly to schedule hearings and debate bills of importance. The IMBA testified in support of HB 1109 as amended last week in the House Utilities, Energy and Telecommunications Committee. This week brings an abbreviated work week due to session not meeting on Monday in observance of MLK Day. Of note are Financial Institutions Committee hearings in both the House and Senate.


BILLS TO WATCH

HB 1109 – Telephone Solicitation and Consumer Credit

Rep. Matt Lehman (R-Berne)


Why it matters
The IMBA supports HB 1109, as this legislation fixes the issue from last session’s passage of HEA 1123. That bill inadvertently expanded the registration requirement for telephone solicitation to any business in the state of Indiana using the telephone to solicit business. The registration requirement is burdensome and comes with private right of action if not implemented properly. The IMBA is seeking a clarification in HB 1109 to ensure financial institutions are not required to register with the attorney general’s office.

IMBA-Supported Committee Amendment: The IMBA worked with lawmakers to draft an amendment that fixed the issue lenders are dealing with when trying to pull a credit report on a customer and receiving an error message because of misinformation. HEA 1668, which passed in 2019, changed this process and took away lenders’ ability to do their own customer due diligence. The amendment would repeal HEA 1668 and reinstate the process that was working previously. The amendment was adopted in committee and now resides in the bill.

Latest action
The bill passed the House Utilities, Energy and Telecommunications Committee as amended 11-0 and is currently eligible for 2nd reading amendments.

Learn more about HB 1109


HB 1154 – Septic System Inspection Before Property Transfer

Rep. Mike Aylesworth (R-Hebron)


Why it matters
HB 1154 would require a septic system to be inspected and mitigated to certain standards before a transfer of deed can be executed. The IMBA has concerns with HB 1154 because of the potential for property transfers to be delayed or halted outright because of this additional regulation. Buyers have the option of inspecting septic and well systems currently, should they choose.

Latest action
The bill was assigned to the House Environmental Affairs Committee and has not been scheduled for a hearing.

Learn more about HB 1154


SB 50 – Various Trust and Probate Issues

Sen. Aaron Freeman (R-Indianapolis)


Why it matters
SB 50 was refined and crafted during the interim study committee process last summer through committee deliberation and testimony from various industries. The IMBA Legislative Team worked to keep out of the bill a harmful forced foreclosure proposal that would require a mortgage holder to file a foreclosure on a property in probate if the heir to the property requested it. SB 50 also includes provisions that amend the legacy trust statute that was passed into law during the 2019 legislative session. The amendments clarify that only the lender that relied upon the assets listed on a financial statement when extending credit are able to proceed against those assets in the event of a default. Other changes include various changes to trust and probate laws concerning proof of title affidavits, small estate affidavits, execution of a trust by a third party, silent trusts and nonjudicial settlements of accounts.

Latest action
The bill passed the Senate Judiciary Committee as amended 8-0 and is currently eligible for 2nd reading amendments.

Learn more about SB 50


SB 100 – Nonconforming Structures

Sen. Blake Doriot (R-Syracuse)


Why it matters
The IMBA supports SB 100 which allows a parcel owner to reconstruct, repair, or renovate the nonconforming structure if the reconstruction, repair, or renovation meets certain requirements. Because of the change in zoning laws, structures must conform to new standards after a casualty loss which puts both the owner and the lien holder at additional risk.

Latest action
The bill passed Senate Local Government Committee as amended by a vote of 10-0 and is currently eligible for 2nd reading amendments.

Learn more about SB 100


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