17 Hoosier Banker June 2015 ana Department of State Revenue (DOR) to provide a digital network for connection to prearranged rides in Indiana. Specifies requirements related to: criminal and driving history; drug and alcohol use; vehicle equipment; insurance; fares; privacy; nondiscrimination and accessibility; record maintenance; TNC and TNC driver conduct; and regulation. Details: This bill, otherwise known as the “Uber bill,” is similar to TNC model legislation that other states have been working with in recent months. The issue of registering and insuring TNC drivers has gained the attention of the lending industry nationwide as to protections afforded to lienholders. The IBA worked with the bill author to include “Dual Payee,” which is template language that ensures insurance payouts are not pocketed by the driver who has a lien on the automobile and are used appropriately to fix the vehicle in the event of accident while on duty for a TNC. HB 1281 – Local Government Investments Rep. Edmond Soliday, R-Valparaiso Sen. Ed Charbonneau, R-Valparaiso Bill summary: Provides that, if the proceeds from the sale of a capital asset owned by a political subdivision exceed $25 million, the fiscal body of the political subdivision may: (1) require some or all of the proceeds to be deposited into a separate fund; and (2) authorize the proceeds to be invested in the same manner that money in the next-generation trust fund may be invested. Specifies that, if the political subdivision enters into an agreement with investment management professionals or investment advisers regarding investment of the proceeds, the agreement must be a fee-for-service agreement. Provides that the proceeds may be expended from the separate fund only upon appropriation by the fiscal body of the political subdivision, and that the proceeds may be transferred from the separate fund to another fund only upon approval by the fiscal body of the political subdivision. Specifies that an expenditure or transfer of any money that is part of the principal of the fund may be made only if the expenditure or transfer is approved by each member of the fiscal body of the political subdivision and by each member of the executive body of the political subdivision. Provides that, in the case of a county that receives or will receive at least $25 million from the sale of a capital asset, the county legislative body and the county fiscal body may, by adopting substantially similar ordinances, establish a charitable nonprofit community foundation to hold some or all of the proceeds of the sale of the capital asset in trust for the benefit of the county. Specifies that the board of trustees of the foundation consists of the members of the county legislative body and the members of the county fiscal body. Specifies certain conditions on the investment and use of the proceeds. Provides that an expenditure or transfer of any money that is part of the principal of the donation may be made only upon unanimous approval of the board of trustees. Provides that, to the extent that investment income earned on the principal amount of the donation during a calendar year exceeds 5 percent of the amount of the principal at the beginning of the calendar year, excess investment income shall be added to and be considered a part of the principal amount of the donation. Details: The IBA GR Team worked with the bill author to improve the safeguards in the legislation for the protection of public funds. After several negotiations, an amendment was adopted that will increase the minimum eligibility of the capital asset for investment from $25 million to $50 million and require that an advisory board, to be staffed by bankers, will approve investments. HB 1287 – Financial Institutions and Trade Regulation Rep. Woody Burton, R-Whiteland Sen. Travis Holdman, R-Markle Bill summary: Makes various changes to the laws concerning: firstlien mortgage lenders, persons licensed under the Uniform Consumer Credit Code, rental purchase agreements, debt management companies, financial institutions, pawnbrokers, money transmitters and check cashers. Repeals a provision providing an alternative regular reserve formula for certain credit unions. Details: This is the annual Department of Financial Institutions bill. The bill contains a number of technical changes, but very little in the way of policy change, and does not present concerns to the IBA. HB 1456 – Servicemembers Civil Relief Act Rep. Dennis Zent, R-Angola Sen. Susan Glick, R-LaGrange Bill summary: Creates the Servicemembers Civil Relief Act for the state of Indiana. Provides that protections under Indiana’s civil relief act supplement protections for service members under the federal Servicemembers Civil Relief Act. Details: This bill was brought to the General Assembly at the direction of the state attorney general’s office. The preliminary draft had numerous provisions and requirements of lenders that were problematic, but the filed draft was considerably less problematic for lenders. The bill creates a new database for members of the Indiana National Guard for lenders to use as reference for protections under the Federal Service Members Civil Relief Act. National Guard members would be placed on the database if they are activated for longer than a 30-day period. The IBA had early concerns related to how lenders handled the bill’s requirement for treatment of National Guard members once activated for service. However the IBA worked with the AG’s office and Rep. Zent to craft a solution that will make a list of active National Guard members readily available to lenders. The bill was ultimately amended to require members of the National Guard to notify the lender in the event they seek the protections under SCRA and are activated for more than 30 days. Continued on page 18.
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