IBA E-News 3-3-17
STATE GOVERNMENT RELATIONS NEWS
It’s Not Too Late to Register for Tuesday’s FLD Day at the Statehouse
Register now for the Future Leadership Division Day at the Statehouse, set for this upcoming Tuesday, March 7, in Indianapolis. This is an excellent opportunity to familiarize yourself with the legislative process and the importance of being a grassroots advocate for the banking industry. For questions, please contact Josh Myers, 317-917-8047.
Indiana House and Senate Reconvene on Monday
Both the Indiana House and Senate will reconvene on Monday, March 6, after a brief break this week. The House concluded all legislative business last Monday, and the Senate did the same last Tuesday. This period marks the halfway point of the 2017 Indiana General Assembly. Bills that originated in either chamber must have moved through that chamber of origin, with a full-body third reading vote by this week. As a result, a number of bills are now considered dead for the year, due to a lack of legislative action. The IBA GR Team continues to monitor various legislative initiatives that are alive and moving. In addition, the GR Team remains vigilant regarding existing legislation, to ensure that problematic concepts do not arise in bills in the second half of session.
SB 196 – School Debt Service Obligations
Sen. Luke Kenley, R-Noblesville
Bill summary: This bill amends the definition of “debt service obligations” used for purposes of the statute concerning the Department of Local Government Finance review of school corporation bond and lease rental property tax levies.
What happens next: The bill was heard in the Senate Appropriations Committee on Feb. 23. The committee amended the bill and passed the bill out of committee. The bill passed a third reading vote by the Senate on Feb. 28. Rep. Tim Brown, R-Crawfordsville, has been named sponsor of the bill in the House.
SB 227 – Foreclosure Counseling and Education Fee
Sen. James Merritt, R-Indianapolis
Bill summary: The bill removes a provision providing for the July 1, 2017, expiration of the $50 mortgage foreclosure counseling and education fee that must be paid by a party filing an action to foreclose a mortgage.
What happens next: The bill was amended and voted upon in the Senate Public Policy Committee on Feb. 23. The amendment provides for a one-year extension of the $50 mortgage foreclosure counseling fee. The bill passed the Senate on third reading 39-10 and moves to the House for consideration. The House sponsor will be Rep. Woody Burton, R-Whiteland.
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 passed the Senate on third reading 45-4 and moves to the House for consideration. The House sponsor will be Rep. Denny Zent, R-Angola.
FEDERAL GOVERNMENT RELATIONS NEWS
Department of Labor Moves to Postpone Fiduciary Rule
The Department of Labor is proposing to extend the applicability deadline of the fiduciary rule for 60 days, until June 9, according to a notice published in the Federal Register. The rule was originally scheduled to take effect on April 10. Comments on the extension proposal are due in 15 days.
The rule, which expanded the definition of “fiduciary” under the Employee Retirement Income Security Act and the Internal Revenue Code, was the target of a recent executive action by President Donald Trump, who directed the secretary of labor to thoroughly review the rule’s effect on Americans’ ability to access financial services. The delay will provide the DOL additional time to determine the rule’s full impact on consumers, and, if necessary, issue a new proposal for revising or rescinding the rule.
FDIC Releases Q2 CRA Exam Schedule
The FDIC on Tuesday released its second quarter Community Reinvestment Act examination schedule, covering April through June 2017.
Trump Orders Regulatory Reform Efforts at Agencies
President Trump last Friday issued an executive order as part of his administration’s efforts to reduce regulatory burden. The order requires agencies to appoint regulatory reform task forces led by regulatory reform officers, with a mandate to identify regulations that eliminate jobs or inhibit job creation; are outdated, unnecessary or ineffective; have costs that outweigh their benefits; are inconsistent with regulatory reform initiatives; or derive from since-rescinded executive orders. Initial reports are due within 90 days.
GAO: Fed Officials, Bankers Concerned About Dividend Cut
A Government Accountability Office report last Friday found that although the change in the dividend rate has had little short-term effect on Federal Reserve membership and bank operations, concerns arise for the future.
“Commercial banks and Federal Reserve officials we interviewed expressed some concerns about the dividend rate modification,” the GAO indicated. “Certain Federal Reserve officials with whom we spoke were concerned about increased membership attrition as a result of the dividend rate modification.”
Fed member banks with less than $10 billion in assets were worried that the 2015 bill reducing the dividend would set a precedent for “future transfers from the Reserve Banks, and that they would reconsider Federal Reserve membership if the dividend rate threshold were reduced to include banks in their asset range,” the GAO noted.