24 Hoosier Banker June 2015 hide assets from a creditor through such a trust. There is also a broader public policy concern related to the creation of a self-settled trust through this law that would entitle the creator of the trust to directly benefit from the trust, which would be new to Indiana law. The IBAdrafted amendment to address the IBA’s concerns with asset protection and lender rights was adopted in committee, removing our opposition. Outcome: After heavy debate on the Senate floor on Feb. 19, the bill was defeated, with a vote of 18-31. SB 195 – Investments by Local Government Sen. Carlin Yoder, R-Middlebury Bill summary: Provides that, upon approval by the fiscal body, money in a local Major Moves construction fund may be invested in fixed-income assets that have a credit rating of at least AA if certain requirements are met. Provides that, if authorized by the fiscal body of a political subdivision, and if that fiscal body makes a determination that money received from the sale of facilities or other real property represents a substantial amount of public funds, that money may be invested in fixed-income assets that have a credit rating of at least AA if certain requirements are met. Details: This Senate bill was brought forward by the mayor of a city in one of the designated county recipients of Major Moves funds. Each county was allotted $40 million for infrastructure improvement. This particular city is seeking a greater yield on its Major Moves funds and has been approached by a community development organization that is promising a substantial return. While limited and finite in scope, the IBA is opposed to any legislation that establishes a precedent to invest public deposits in riskier, non-depository investment products. The IBA currently is exploring a solution to the issue that would not create such a precedent. Outcome: The IBA testified in opposition to the bill. The committee held the bill. The bill was never reposted for a hearing, effectively killing the legislation due to legislative calendar deadlines. SB 211 – Debt Collection Sen. Patricia Miller, R-Indianapolis Rep. David Frizzell, R-Indianapolis Bill summary: Amends the statute concerning deceptive consumer sales as follows: (1) defines the term “debt buyer;” (2) specifies that a debt buyer is a debt collector for purposes of the statute; (3) requires a debt collector to make certain disclosures to an Indiana debtor; (4) provides that the failure to make the required disclosures constitutes a deceptive act under the statute; and (5) specifies that the attorney general’s authority to recover a civil penalty, not exceeding $1,000, for knowing violations of the provisions concerning debt collection practices applies to each violation of the provisions per consumer, subject to a cap of $25,000 in total civil penalties that may be imposed for each violation. Details: The original bill included language that required the lender to provide the charge off amount to the debt buyer/collector. The IBA opposed the use of the term “charge off.” The term was changed in the Senate to the satisfaction of the IBA. However, when the bill crossed over to the House, the attorney general resumed use of the term “charge off.” The IBA worked with the attorney general’s office to seek a better way to accomplish its stated goal. Outcome: The bill did not receive a hearing in the House. The attorney general tried but was unable to find a home for the language during conference committee, and the bill died. SB 435 – Public Depositories Sen. Brandt Hershman, R-Buck Creek Bill summary: Provides that a financial institution is ineligible to become a depository and receive public funds of the state if the financial institution has been found by: (1) the Department of Financial Institutions (DFI); or (2) the financial institution’s primary federal regulator; to not be in substantial compliance with, or to have violated, the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Act). Sets forth procedures that DFI must follow if it receives credible evidence that a financial institution is not in substantial compliance with, or has violated, the Act. Provides that, if it is determined under these procedures that the financial institution is not in substantial compliance with the Act, or has violated the Act, DFI shall notify immediately the chairperson of the board for depositories of the determination. Details: This bill would punish any depository institution that substantially violates FIRREA by prohibiting the institution from holding public deposits. Outcome: The bill did not receive a hearing. SB 563 – Open-Market PACE Programs Sen. Mark Stoops, D-Bloomington Bill summary: Authorizes the legislative body of a local governmental unit to designate an area as a clean energy improvement financing district and authorize financing of certain qualified clean energy improvements, including reduced water consumption and waste water discharges, through assessments. Requires the utility regulatory commission to adopt rules to establish technical guidelines to assist local governmental units in administering a district’s program. Details: The IBA has fought PACE legislation for the last five years in the Indiana General Assembly. The ultimate aim of advocates for the PACE program is to give the PACE loans priority lien preference over mortgages. Outcome: The bill did not receive a hearing. t Continued from page 23.
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