IBA E-News 2-10-17
STATE GOVERNMENT RELATIONS NEWS
FLD Day at the Statehouse
Register now and plan to attend the third annual Future Leadership Division Day at the Statehouse, set for March 7 in Indianapolis. The tentative agenda will include an introduction to lobbying, a review of the current issues facing the industry and lunch with a special guest speaker. After lunch, participants will walk to the Indiana Statehouse to see the legislative process in action. The remaining time will be spent observing floor sessions of the Indiana House and Senate, where attendees will have the opportunity to visit with their elected officials. For questions, please contact Josh Myers, 317-917-8047.
IBA Legislative Reception a Success
The IBA hosted the 2017 Legislative Briefing and Reception this past Tuesday, Feb. 7, in downtown Indianapolis. This year’s reception proved to be another successful event, with strong participation from both bankers and legislators. Nearly half of the 150 members of the General Assembly attended some portion of the two-hour reception. Additionally Attorney General Curtis Hill and Treasurer Kelly Mitchell stopped by to connect with bankers from across the state. The IBA would like to thank those members who attended, making this event a continuing success. Photos available online.
SB 13 – Use of Firearms to Secure Loans
Sen. Jim Tomes, R-Evansville
Bill Summary: This bill repeals the statute prohibiting the use of a firearm (handgun) as a security.
What happens next: The bill was heard in the Senate Judiciary Committee on Feb. 8. The committee passed the bill, and the bill is scheduled for second reading eligible for amendments by the full Senate.
SB 90 – Doing Business or Marketing as a Cooperative
Sen. Jean Leising, R-Oldenburg
Bill summary: The introduced bill provides that it is unlawful for a business entity that is not a cooperative or mutual entity to do the following: (1) use the terms “cooperative,” “co-op,” “mutual” or any derivative of those terms in a business entity name, if the use of the term would create a substantial likelihood of misleading the public by implying that the business entity is a cooperative or mutual entity; (2) advertise or represent the business entity to the public, its customers or prospective customers as a cooperative or mutual entity or as an entity operating on a cooperative or mutual basis. It defines the term “cooperative or mutual entity” – including mutual financial institutions. It requires the Indiana State Department of Agriculture (ISDA) to regulate the use of the terms “cooperative,” “co-op,” “mutual” and any derivative of those terms. It authorizes the revocation of a retail merchant’s certificate and the use of civil penalties, administrative dissolution by the secretary of state (SOS) and administrative orders to enforce the restrictions on the use of the terms “cooperative,” “co-op,” “mutual” and any derivative of those terms. The bill provides for judicial review of the proceedings of the ISDA and the SOS. The bill specifies that certain cooperative or mutual entities are not subject to the enforcement provisions of the bill. The bill also provides that certain enforcement actions of the ISDA are not subject to the Administrative Orders and Procedures Act.
What happens next: The bill was amended in the Senate Agriculture Committee to exclude all financial institutions. The bill passed out of committee 9-0. The engrossed bill moves on to third reading in the Senate.
SB 455 – Tax Administration of Mobile Homes
Rep. Randy Head, R-Logansport
Bill summary: The bill establishes an optional procedure by which a county treasurer may sell a mobile home assessed as personal property at auction to the highest bidder, in order to satisfy the amount owed by the owner for delinquent personal property taxes, penalties and collection expenses attributable to the mobile home. The requires that notice of a tax sale proceeding be sent to lienholders that each year ask for a notice.
What happens next: The bill was amended in the Senate Tax and Fiscal Policy Committee to require that notice of a tax sale proceeding be sent to any lienholder, rather than only to lienholders that each year ask for a notice. The bill passed out of committee 12-0 and moves on to second reading in the Senate.
SB 505 – County Recorder Matters
Sen. Rodric Bray, R-Martinsville
Bill summary: The bill amends the amounts and distribution of recording fees.
Bulk Form Copies: It allows a maximum fee set by ordinance for providing bulk form copies of 10 cents (instead of 7 cents) per page. It also allows overhead costs to be included in the “actual cost” charged by the recorder for bulk form copies. The bill requires a contract with the county recorder as a prerequisite to receiving bulk form copies, and it allows a county recorder to terminate a contract and refuse to provide bulk form copies to a person, including a commercial entity that has had a previous contract terminated by the county recorder.
Electronic Records: The bill adds the Uniform Real Property Electronic Recording Act that provides, effective Jan. 1, 2018, that for purposes of recording: (1) an electronic document satisfies any legal requirement for an original paper document or other medium; and (2) an electronic signature satisfies a legal requirement that a document must be signed, notarized, acknowledged, or verified.
Commission: The bill creates the Electronic Recording Commission to adopt standards before Jan. 1, 2018, to implement the Uniform Real Property Electronic Recording Act.
What happens next: The bill was amended in the Senate Local Government committee to:
- Require that one member of the 22-member commission must be employed in Indiana in the banking or mortgage lending industry.
- Change the proposed filing fees for mortgages from $60 to $55.
- Change the proposed filing fees for other instruments from $30 to $25.
The bill moves on to second reading in the Senate.
SB 507 – Economic Development
Sen. Randy Head, R-Logansport
Bill summary: The bill contains the following provisions:
21 Fund: The bill repeals the statute establishing the Emerging Technology Grant Fund and the 21 Century Research and Technology Fund (21 Fund) Grant Office. It repeals the statute that authorized the Indiana Finance Authority to issue bonds before July 1, 2011, for the 21 Fund.
Indiana Regional Cities Development Fund: It repeals the Indiana Regional City Fund statute and transfers the provisions in that statute to the Indiana Regional Cities Development Fund statute. It provides that, in addition to applications for grants and loans from the Indiana Regional Cities Development Fund, a development authority may also submit an application to the Indiana Economic Development Corp. (IEDC) for review and approval of the entity’s development plan, without applying for a grantor loan.
Tax Credit Expirations: The bill provides that a taxpayer is not entitled to receive any of the following (with certain exceptions): (1) an Enterprise Zone (EZ) loan interest credit for interest received on a loan made after Dec. 31, 2017; (2) an EZ investment cost credit for a qualified investment made after Dec. 31, 2017; (3) an industrial recovery tax credit for a qualified investment made after Dec. 31, 2017; (4) a community revitalization enhancement district (CRED) tax credit for a qualified investment made after Dec. 31, 2017.
Extension provisions: The bill eliminates the expiration provisions in current law for the following tax credits: (1) the venture capital investment tax credit; (2) the Hoosier business investment tax credit.
Small business development: The bill repeals the statute establishing the Office of Small Business and Entrepreneurship and transfers duties related to small businesses from the Office of Small Business and Entrepreneurship to the IEDC. It provides that the IEDC designates the small business ombudsman.
Financial examinations: The bill provides that the IEDC board may engage an independent certified public accounting firm to conduct an examination of the IEDC and the IEDC’s funds, accounts, financial affairs and the IEDC’s nonprofit subsidiary corporation if: (1) an independent certified public accounting firm conducts an examination; (2) the IEDC submits the examination report to the State Board of Accounts; and (3) the State Board of Accounts reviews the examination report and determines that the examination and examination report comply with the uniform compliance guidelines, directives and standards established by the State Board of Accounts. It provides that, notwithstanding such a waiver, the state board of accounts may examine the IEDC and the nonprofit subsidiary corporation at any time.
IEDC board: The bill authorizes the governor to appoint up to three additional members to the IEDC board.
Financial audits: The bill provides that the Office of Management and Budget may waive the requirement that a certified public accountant perform an annual financial audit of a regional development authority established under the general redevelopment authority law, if that regional development authority certifies that it had no financial activity during the year.
What happens next: The bill was heard in the Senate Tax and Fiscal Committee on Feb. 7. The bill was amended and passed by the committee. The bill is now eligible for second reading amendments.
FEDERAL GOVERNMENT RELATIONS NEWS
IBA Annual Washington Trip
Mark your calendars for Sept. 24-26 and join your Hoosier bankers as we make our voice heard in Washington, DC. The event is a key component to the IBA’s grassroots advocacy efforts, and your participation will be vital to its success. More information and registration are forthcoming.
Jeff Sessions Confirmed as Attorney General
The Senate on Wednesday confirmed Sen. Jeff Sessions (R-Ala.) 52 to 47 as President Trump’s attorney general. Serving in the Senate since 1997, Sessions previously was Alabama’s attorney general and a U.S. attorney. Alabama Gov. Robert Bentley has appointed Alabama Attorney General Luther Strange to Sessions’ Senate seat.
House Financial Services Committee
The House Financial Services Committee approved its work plan for the 115th Congress on Tuesday. The committee’s oversight agenda will include regulatory agency oversight, “too big to fail,” capital standards, mortgage rules, regulatory burden, community bank issues, fair lending enforcement, data security, and housing finance and flood insurance, among other topics.
NCUA Issues Alternate Capital Proposal for CUs
The National Credit Union Administration on Wednesday published an advanced notice of proposed rulemaking to expand the types of investment capital that federally insured credit unions could use to meet certain regulatory requirements. NCUA is considering whether to allow credit unions to use investment capital (that would be uninsured capital subordinate to all other claims) to satisfy the risk-based net worth ratio requirement.
Under current law, only low-income designated credit unions are allowed to use secondary capital to satisfy two regulatory requirements: the net worth ratio and the risk-based net-worth ratio. While any change to the net worth ratio would require an act of Congress, the NCUA asserted in the proposal that it has broad authority to adjust the risk-based net worth ratio requirement and, therefore, may choose to allow credit unions that are not low-income designated to use alternative capital to meet this requirement.