STATE GOVERNMENT RELATIONS
House Bill 1109 - Telephone Solicitation and Consumer Credit
Author: Rep. Matt Lehman, R-Berne
Summary: Amends the law requiring telemarketers to register with the office of the attorney general (registration law) as follows: (1) Provides that a seller is not subject to the registration law solely because the seller makes or will make a solicitation in a telephone call that is exempt from the Do Not Call statute. (2) Restores conditions removed by P.L.242-2019 that limit application of the registration law to sellers that make certain types of solicitations. (3) Provides that a solicitation occurs for purposes of the registration law only in a telephone call made by a seller. (4) Removes the requirement that a seller must provide in the seller's registration statement information as to whether the seller (or any officer, director, trustee, general partner, manager, principal, executive or representative of the seller) has been: (A) held liable in certain civil actions; (B) convicted of certain crimes during the most recent seven years; or (C) declared bankrupt during the most recent seven years. Repeals from the statute governing consumer sales the chapter that sets forth certain requirements for a consumer reporting agency that uses a Social Security number as a factor in determining whether a file maintained by the consumer reporting agency matches the identity of an individual who is the subject of a credit inquiry.
Latest Action: House Bill 1109 passed the Senate 48-0 for the final time and now is eligible for signature by Gov. Holcomb to be placed into law.
House Bill 1353 - Financial Institutions and Consumer Credit
Author: Rep. Woody Burton, R-Whiteland
Summary: Makes various changes to the statutes concerning: (1) first-lien mortgage lenders; (2) persons licensed under the Uniform Consumer Credit Code; (3) civil proceeding advance payment providers; (4) debt management companies; (5) banks; (6) credit unions; (7) pawnbrokers; (8) money transmitters; and (9) licensed cashers of checks. Repeals a provision in the statute governing credit unions that concerns loans made by a credit union to the credit union's individual directors and committee members. Amends a provision in the statute governing credit unions that concerns loans made by a credit union to the credit union's individual officers to: (1) include extensions of credit made to the credit union's individual directors and supervisory committee members (and to the immediate family members and related interests of the credit union's individual directors and supervisory committee members); and (2) specify that such extensions of credit shall be made in accordance with Regulation O of the Board of Governors of the Federal Reserve System.
Latest Action: House Bill 1353 passed the Senate 48-0 on Tuesday and is now eligible to be concurred upon by the House.
Senate Bill 395 - Uniform Consumer Credit Code
Author: Sen. Eric Bassler, R-Washington
Summary: Amends the Uniform Consumer Credit Code as follows: (1) Changes: (A) from July 1 of each even-numbered year to Jan. 1 of each odd-numbered year the effective date for the adjustment, based on changes in the Consumer Price Index, of various dollar amounts set forth in the UCCC; and (B) the corresponding date that precedes the adjustment date and by which the Department of Financial Institutions must issue an emergency rule announcing the adjustment. (2) For an agreement for a consumer credit sale entered into after June 30, 2020: (A) authorizes a seller to contract for and receive a nonrefundable fee based on the amount financed, in addition to the credit service charge and any other authorized charges and fees; and (B) prohibits precomputed consumer credit sales. (3) Repeals a provision concerning the credit service charge for revolving charge accounts and relocates the language to the provision concerning the authorized credit service charge for consumer sales. (4) For an agreement for a consumer loan entered into after June 30, 2020: (A) redesignates the authorized "nonrefundable prepaid finance charge" as an authorized "nonrefundable fee" and changes the amount of the authorized fee from $50 to an amount based on the amount financed, in the case of a consumer loan not secured by an interest in land; and (B) prohibits precomputed consumer loans. Changes from $1.50 to $3.00 the amount of the fee that a lessor in a rental purchase agreement may impose for accepting rental payments by telephone. Makes conforming technical amendments throughout the UCCC to reflect the bill's changes.
Latest Action: Senate Bill 395 passed the House Tuesday 77-17 and is now eligible to be concurred upon in the Senate.
FEDERAL GOVERNMENT RELATIONS
Fed Cuts Rates Amid Coronavirus Downturn
The Federal Open Market Committee announced a 50-basis-point cut to its benchmark interest rate target amid economic turmoil caused by the coronavirus outbreak.
The cut, which followed an unscheduled meeting of the Fed's rate-setting panel, lowers the federal funds rate to a range of 1% to 1.25%. In a statement, the FOMC said that while U.S. economic fundamentals remain strong, the coronavirus poses evolving risks.
The interest rate cut follows a similar public statement issued last Friday by Federal Reserve Chair Jerome Powell. The FOMC's next scheduled meeting is set for March 17-18.
Agencies Finalize CECL Policy Statement
Federal regulators issued a final interagency policy statement on the Financial Accounting Standards Board’s Current Expected Credit Loss standard.
The statement describes the measurement of expected credit losses using the CECL methodology and updates concepts and practices in existing supervisory guidance.
USDA to Delay Certain Requirements for Industrial Hemp Producers
The Department of Agriculture announced last week that it will delay the enforcement of certain requirements of a December 2019 interim final rule for industrial hemp producers. USDA will postpone - either until Oct. 31, 2021, or until a final rule is published - the requirement for industrial hemp labs to be registered by the Drug Enforcement Administration and for producers to use a DEA-registered reverse distributor or law enforcement to dispose of noncompliant plants under certain circumstances.
USDA issued its interim final rule last year to establish regulations and procedures for the legal production of industrial hemp, as required by the 2018 Farm Bill, which reclassified hemp as a legal agricultural commodity.
DOJ Charges Record Number of Elder Fraud Cases
The Department of Justice has charged more than 400 defendants responsible for more than $1 billion in losses this year in the largest coordinated sweep of elder fraud cases in history, Attorney General William Barr and Chief Postal Inspector Gary Barksdale announced Tuesday. That figure reflected a 54% increase in the number of individuals charged over last year.
Barr noted that the effort reflects a renewed focus on prosecuting elder fraud cases by the DOJ, which has expanded its enforcement efforts. “As we have worked closely with banks and other private sector partners in this effort, it has become clear that a substantial part of the fraud against elders is conducted by transnational criminal organizations,” he said. “For this reason, we have now expanded our enforcement efforts to have global reach.”
The DOJ also announced the creation of a new national hotline that will provide services to seniors that may be victims of financial exploitation. Victims will receive assistance with reporting suspected fraud to relevant agencies and will receive resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the FBI’s IC3 and/or the Federal Trade Commission.