STATE GOVERNMENT RELATIONS
House Bill 1409 - Government Contracts
Author: Rep. Jake Teshka (R-District 7)
Bill Summary: Government contracts. Provides that a governmental body may not enter into a contract with a person for the purchase of supplies or services unless the contract contains a written verification from the person that the person: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or a firearm trade association; and (2) will not discriminate during the term of the contract against a firearm entity or a firearm trade association. Applies this requirement to public works contracts and to contracts relating to investment of public funds.
Latest action: The bill was assigned to the Government and Regulatory Reform Committee.
Senate Bill 262 - House Tax Credit
Author: Sen. Travis Holdman (R-District 19) and Sen. Linda Rogers (R-District 11)
Bill Summary: Housing tax credits. Provides an affordable and workforce housing state tax credit against state tax liability to a taxpayer for each taxable year in the state tax credit period of a qualified project in an aggregate amount that does not exceed the product of a percentage between 40% and 100% and the amount of the taxpayer's aggregate federal tax credit for the qualified project. Provides that an eligible applicant must apply to the Indiana housing and community development authority for an award of an affordable and workforce housing state tax credit. Provides that a holder of an affordable and workforce housing state tax credit may transfer, sell, or assign all or part of the holder's right to claim the state tax credit for a taxable year.
Latest action: The bill had a second reading and was ordered engrossed.
Senate Bill 371 - Replacement of the London Interbank Offered Rate
Author: Sen. Andy Zay (R-District 17)
Bill Summary: Replacement of the London Interbank Offered Rate. Adds provisions to the title in the Indiana Code concerning financial institutions to provide for the replacement, by operation of law, of the United States Dollar LIBOR as the benchmark index for any contract, security, or instrument, with a recommended benchmark replacement that is based on the secured overnight financing rate (SOFR). Sets forth certain events that serve to trigger the replacement of LIBOR with the recommended benchmark replacement. Specifies that such replacement by operation of law applies with respect to a contract, security, or instrument that either: (1) contains no fallback provisions setting forth a methodology or procedure for determining a benchmark replacement; or (2) contains fallback provisions that result in a benchmark replacement that: (A) is not a recommended benchmark replacement; and (B) is based in any way on any LIBOR value. Provides that if a recommended benchmark replacement becomes the benchmark replacement for any contract, security, or instrument, any applicable benchmark replacement conforming changes become an integral part of the contract, security, or instrument by operation of law. Provides that the bill's provisions do not alter or impair contracts, securities, or instruments that contain certain provisions. Provides that the selection or use of a recommended benchmark replacement as a benchmark replacement for a contract, security, or instrument: (1) constitutes a commercially reasonable replacement for and a commercially substantial equivalent to LIBOR; and (2) does not: (A) impair or affect certain rights and performance obligations under; (B) constitute a breach of; or (C) void or nullify; the contract, security, or instrument. Provides that a person is not liable for damages and is not subject to any claim for equitable relief, in connection with: (1) the selection or use of a recommended benchmark replacement; or (2) the determination, implementation, or performance of benchmark replacement conforming changes; with respect to any contract, security, or instrument. Makes a cross reference to this immunity provision in the chapter of the Indiana Code that lists statutes outside of Title 34 of the Indiana Code that confer civil immunity.
Latest action: The bill was passed by the Insurance and Financial Institutions Committee.
Senate Bill 383 - Financial Institutions and Consumer Credit
Author: Sen. Eric Bassler (R-District 39)
Bill Summary: Financial institutions and consumer credit. Provides that a reference to federal law in: (1) the first lien mortgage lending act; (2) the Uniform Consumer Credit Code (UCCC); or (3) the Indiana Code title governing financial institutions; is a reference to the law as in effect Dec. 31, 2021 (versus Dec. 31, 2020, under current law). Amends the provisions governing a change of control of the following entities regulated by the department of financial institutions (department) to require that the regulated entity provide to the department the required application for the proposed change in control at least 120 days before the anticipated date of closing of the acquisition: (1) First lien mortgage lenders. (2) Creditors licensed under the UCCC to make consumer loans. (3) Civil proceeding advance payment providers. (4) Debt management companies. (5) Pawnbrokers. (6) Money transmitters. (7) Check cashers. Authorizes the department to: (1) revoke or suspend the regulated entity's license; or (2) direct the acquiring entity to apply for a new license under applicable law; if either party fails to comply with the requirements for a change in control of the licensed entity. Amends the provisions in the UCCC governing authorized finance charges for consumer loans (other than supervised loans) and for supervised loans to specify that: (1) the entire section governing finance charges for consumer loans (other than supervised loans) does not apply to supervised loans; and (2) the loan finance charge for a supervised loan must be: (A) contracted for between the lender and the debtor; and (B) calculated by applying a rate not exceeding the authorized rate to unpaid balances of the principal. Amends provisions in the UCCC concerning permitted additional charges for guaranteed asset protection (GAP) agreements for: (1) consumer credit sales; and (2) consumer loans; to specify that the average retail value for a used motor vehicle that is the subject of a GAP agreement is to be determined by using a third party valuation service provider customarily relied upon in the used motor vehicle commercial market (versus by using the National Automobile Dealers Association average retail value, under current law). Amends the statute concerning rental purchase agreements to authorize a lessor to charge an expedited payment service fee of $3 for accepting an expedited payment from a lessee (versus a telephone payment fee of $3 under current law) if certain conditions are met. Amends the Indiana Code section concerning the department's duties of confidentiality with respect to certain information concerning financial institutions to specify that those duties apply to all regulated entities licensed or registered with the department. Specifies that the required fidelity coverage for credit unions: (1) applies to those directors, officers, and employees of the credit union who have access to money or bonds of the credit union; and (2) must be approved annually by the credit union's board of directors as to the amount and form. Amends the statute governing money transmitters to: (1) provide that a "payment instrument" does not include a "stored value account"; and (2) remove the definition of "stored value account." Changes references to a "federal savings and loan association" to a "federal savings association" for purposes of the statute concerning mergers, consolidations, and conversions involving federal savings associations and savings associations chartered in Indiana, to specify that a federal savings association may convert into a savings association chartered in Indiana.
Latest action: The bill was passed by the Insurance and Financial Institutions Committee.
FEDERAL GOVERNMENT RELATIONS
Biden Announces Three Key Fed Nominations
As expected, President Biden last Friday nominated Sarah Bloom Raskin to serve as vice chair for supervision at the Federal Reserve Board of Governors. Raskin – a former Maryland commissioner of financial regulation – previously served on the Fed board from 2010 to 2014, and also served as deputy secretary of the Treasury under President Obama.
President Biden also announced two additional Fed board nominees: economists Lisa Cook and Philip Jefferson. Cook is currently a professor at Michigan State University who previously served on the White House Council of Economic Advisers during the Obama administration. Jefferson is a professor and administrator at Davidson College in North Carolina, and previously worked as a Fed economist.
Raskin, Cook and Jefferson join a slate of Fed nominees that also include current Fed Chair Jerome Powell – who was re-nominated by President Biden to serve a second term – and Lael Brainard, who was tapped to serve as vice chair of the board. These nominations, if approved by the Senate, would bring the Fed board back to full strength for the first time since 2013.
GAO Report Highlights Federal Response to Trafficking, Money Laundering
A recent report issued by the Government Accountability Office highlights the strategies and techniques used by criminal groups to engage in trafficking and money laundering, as well as efforts by the federal government to combat these illegal activities. The report was issued as required by the fiscal year 2021 National Defense Authorization Act.
The report describes how criminal groups move illicit goods and launder money across borders, using bulk cash smuggling, “funnel” accounts, gold and other high-value assets, and real-estate purchases, among other techniques. The report also discusses how detailed case studies would help financial institutions’ ability to identify or report information useful for law enforcement investigations.
Additionally, the report describes how information sharing through the 314(b) program could be improved with clearer expectations and standards around response times for requests from other institutions or around what information can be shared.
Postal Banking Pilot Lands Just Six Sales: Report
A U.S. Postal Service pilot program to test postal banking has served just six individuals since it quietly launched in September, according to a new report.
Government Executive reported that six sales between Sept. 13 and Jan. 12 have provided a total value of $548.46 in gift cards and brought in $35.70 in fees to the Postal Service.
The program offers check cashing, bill paying, ATM access, and expanded money orders and wire transfers at locations in Washington, D.C.; Falls Church, Va.; Baltimore; and the Bronx, N.Y. Customers may reportedly cash payroll or business checks to buy single-use gift cards worth up to $500 for a flat fee of $5.95.