STATE GOVERNMENT RELATIONS
General Assembly Picks up Pace in Second Week
The 2021 General Assembly officially commenced last week and has increased its pace of policy work through this second week of session. A significant number of committees met this week to hear, amend and vote on various bills ranging in subject matter. To date, over 1,000 bills have been introduced this session, and that number is expected to grow. Below is a sample of bills the IBA Government Relations Team is monitoring.
Senate Bill 49 - Unlawful Viewpoint Discrimination
Author: Sen. James Tomes (R)
Summary of legislation: This bill provides that it is an unlawful discriminatory practice for a financial institution or a governmental entity to refuse to do business with, or otherwise discriminate against, a person because the person supports or is engaged in the lawful commerce of firearms, firearms accessories or ammunition. It provides an exemption with respect to certain practices engaged in by a financial institution for a legitimate business reason or to comply with the directive of a regulator.
The bill also provides for a civil cause of action for a person aggrieved by an unlawful discriminatory practice. It provides that the attorney general may bring a civil action in the name of the state against a person believed to be engaging in, or to have previously engaged in, an unlawful discriminatory practice. It also provides that if the attorney general prevails in such an action, the attorney general shall recommend to the governor the discontinuation of state business relations with any person found to have engaged in an unlawful discriminatory practice.
Senate Bill 188 - Revised Uniform Unclaimed Property Act
Author: Sen. Eric Koch (R)
Summary of legislation: This bill repeals the Unclaimed Property Act and replaces it with the Revised Unclaimed Property Act. The bill makes significant changes to the current Indiana Unclaimed Property statute.
Senate Bill 400 - Statewide Electronic Lien and Title System
Author: Sen. Chris Garten (R)
Summary of legislation: This bill has the following provisions:
(1) Requires the Bureau of Motor Vehicles to implement a statewide electronic lien and title system (“system”) to process: (a) vehicle titles; (b) certificate of title data in which a lien is notated; and (c) the notification, maintenance and release of security interests in vehicles; through electronic means instead of paper documents.
(2) Provides that the BMV may: (a) contract with one or more qualified vendors to develop and implement a system; or (b) develop an interface to provide qualified electronic lien service providers secure access to data to facilitate the creation of a system.
(3) Sets forth certain requirements that apply if the BMV elects to implement the system through a qualified vendor versus through qualified electronic lien service providers.
(4) Specifies that a contract entered into between the BMV and: (a) a qualified vendor; or (b) a qualified electronic lien service provider; may not provide for any costs or charges payable by the BMV to the qualified vendor or the qualified electronic lien service provider.
(5) Sets forth dates by which the BMV must implement and allow or require the use of: (a) a statewide electronic lien system; and (b) a statewide electronic title system.
(6) Sets forth certain conditions that apply to the use of a statewide electronic lien system implemented by the BMV under these provisions.
(7) Authorizes the BMV to adopt rules, including emergency rules, to implement these provisions.
House Bill 1056 - Recording Requirements
Author: Rep. Jerry Torr (R)
Summary of legislation: This bill amends the requirements for instruments and conveyances to be recorded. The bill adds instances in which an instrument is considered validly recorded for purposes of providing constructive notice.
FEDERAL GOVERNMENT RELATIONS
SBA to Open PPP Portal to Lenders With Less Than $1B in Assets Today
The Small Business Administration is expected to open the Paycheck Protection Program portal on Jan. 15 to lenders with $1 billion or less in assets to begin processing both new and second-draw loan applications. The program will then open to all other lenders on Tuesday, Jan. 19.
The program opened on Monday morning for certain lenders reaching underserved communities, including community development financial institutions and minority depository institutions, to make first-draw loans and was opened to second-draw loans by these lenders on Wednesday.
A procedural notice issued by the SBA last week confirmed that lenders that were previously making PPP loans do not need to re-register with SBA to make first-draw or second-draw loans in this round of funding. All participating lenders must register on SAM.gov within 30 days from the date of their first PPP loan disbursement made after Dec. 27, 2020.
In related news, SBA has released a notice outlining procedures in the limited range of circumstances when PPP borrowers may reapply for a first-draw loan or request an increase in a first-draw loan. The notice also covers how lenders in these circumstances may obtain an additional processing fee due on the increased loan amount or on a reapplication.
IRS Changes Course Again on EIPs; Will Reissue Misdirected Payments
The Internal Revenue Service on Monday announced that – in a reversal of previous guidance – it will reissue payments for taxpayers who did not initially receive their second-round economic impact payments due to a processing error.
“This impacts taxpayers whose tax preparation providers followed initial IRS guidance and are now waiting for the IRS to re-process payments related to these accounts,” the IRS explained in a notice. “Payments will be issued directly from the government later this month (our industry partners are not in possession of these funds), within weeks of the law being enacted.”
The IRS noted that these payments may either be issued as paper checks or via an ACH direct deposit, and that taxpayers do not need to take action in order to receive their reissued payment. Additionally, the notice indicated: “The IRS regrets the inconvenience caused by this situation.”
1.1M PPP Loans Forgiven So Far: SBA
The Small Business Administration reports it has forgiven more than 1.1 million Paycheck Protection Program loans worth $100 billion out of more than 1.3 million forgiveness applications totaling $170.5 billion. The agency indicates it has approved forgiveness applications for 88% of the smallest borrowers with loans up to $50,000.
CFPB Releases 2021 HMDA Beta Platform
The Consumer Financial Protection Bureau has announced the beta release of the HMDA Filing Platform for data collected in 2021. The 2021 Beta Platform release allows financial institutions to determine whether their sample LAR data comply with the reporting requirements outlined in the Filing Instructions Guide for HMDA data collected in 2021.
To access the 2021 Beta Platform, financial institutions can use their login credentials from the 2020 filing period or establish login credentials. During the beta period, financial institutions may test and retest 2021 HMDA data files as often as desired, with official submissions set to begin Jan. 1, 2022.
IBA COVID-19 Updates
The IBA has several COVID-19 resources and updates available at our website.