21 Hoosier Banker June 2015 Details: This bill was filed in response to a position taken by the Indiana Department of Financial Institutions regarding how funeral trusts should be held in financial institutions. Current law is unclear as to whether a financial institution must hold these accounts, or may invest the funeral trust outside of the financial institution. The bill is intended to clarify the statute to allow banks to invest these funds outside the bank. SB 489 – State Board of Accounts Issues Sen. R. Michael Young, R-Indianapolis Rep. Matthew Lehman, R-Berne Bill summary: Provides that, if variances, losses, shortages or thefts of local government funds or property are reported to the State Board of Accounts, the State Board of Accounts is required to report the amount of funds to law enforcement officials and investigate and report on internal control weaknesses that caused the condition, only if the amount of funds involved is material. Defines “material” as a significant or consequential amount as determined by the state examiner and approved by the audit committee. Expands the definition of “local government” for purposes of internal control systems. Provides that a financial institution shall give notice to the State Board of Accounts whenever a municipality or a public official opens a new account in the name of the municipality or the state. Provides that a vendor, upon request, shall allow the State Board of Accounts to access all software and records of computer services that a vendor has supplied to a municipality. Defines a vendor as a person who supplies electronic goods, software or technological services (including computer services) to a municipality. Details: The IBA is opposed to a mandate that requires financial institutions to police for fraud for the State Board of Accounts by sending notification after every new account is opened by an elected official. The IBA GR Team worked with Sen. Mike Young to explore other options for the State Board of Accounts with regard to the notice requirement. The bill was amended on the Senate floor to include an amendment that would require the State Board of Accounts to utilize the report that is currently sent to the state treasurer for the purposes of reporting public funds accounts to the Board for Depositories. These reports are currently sent to the state treasurer on a quarterly basis. The bill was signed by the governor in April and is effective July 1. SB 500 – Education Deregulation Sen. Pete Miller, R-Brownsburg Rep. Anthony Cook, R-Cicero Bill summary: Makes comprehensive revisions to the Indiana Code relating to all aspects of the administration of schools and school corporations and the education of students from pre-kindergarten through grade 12. Repeals various obsolete provisions and provisions that limit local control of schools. Establishes a school reporting oversight committee to review all reporting requirements by the state for schools. Authorizes public agencies to charge a search and detection fee of $20 per hour for certain public information requests. Expands the list of items for which a state agency may not impose a fee under the public records law, and further regulates the public records fees that state agencies may charge. Repeals a provision allowing the commissioner of the Department of Labor to adopt rules to require certain employers to make and maintain records of and make reports on work-related deaths, injuries and illnesses. Removes a requirement that a local government authority awarding a public work contract to a bidder, other than the lowest bidder, must state in the authority’s minutes or memoranda the factors used to determine the bidder awarded the contract. Provides that school accreditation is optional for schools. Makes conforming and technical amendments. Removes the requirement that school public funds must be deposited in local financial institutions. Details: The bill was amended in committee to remove the language that would have eliminated the requirement that school public funds be deposited in local financial institutions. BILLSTHAT DID NOT PASS HB 1075 – Mortgage Recording Fee Rep. Alan Morrison, R-Seelyville Bill summary: Increases, from $3 to $8, the fee to be collected for each mortgage on real estate that is recorded. Requires the $5 increase to be deposited in the county surveyor’s Corner Perpetuation Fund. Outcome: The bill did not receive a hearing. HB 1279/SB 555 – HERO Plan Rep. Matthew Lehman, R-Berne Sen. Greg Walker, R-Columbus Bill summary: Establishes the Hoosier Employee Retirement Option plan (“plan”) to encourage Indiana residents to increase their rate of saving and to build assets for the use of participants and their survivors and beneficiaries after a participant’s retirement. Establishes a plan board (“board”) with nine members: the treasurer of state, the auditor of state, the director of the Office of Management and Budget, the commissioner of the Department of Labor and five members appointed by the governor. Provides that the appointed board members serve four-year terms, and that the treasurer is the board chair. Requires the board to provide oversight for the plan, which is administered, operated and managed by one or more investment managers, private financial institutions or other financial and services providers selected by the board through a competitive bidding process. Requires the board to annually prepare and adopt a written statement of investment policy. Requires the board to submit an annual report to the governor and the General Assembly concerning the operating and financial performance of the plan. Provides that the plan be audited annually by the State Board of Accounts, and may be audited by Continued on page 22.
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