25 Hoosier Banker May 2016 in a new opportunity area at auction to the highest responsible and responsive bidder. Annexation: The bill adds Kosciusko County to the list of counties whose municipalities may annex noncontiguous territory for industrial park purposes. Details: The bill was drafted to address several issues related to abandoned properties in Lake County. The bill originally contained problematic language related to tax sales. The IBA worked with the author and other parties to change the tax sale language in the bill to a workable solution. The IBA monitored the bill closely for the remainder of session to ensure that no other concerning issues were amended into the bill. SB 323 – Legislative Studies (Combined Reporting Study) Sen. Brandt Hershman, R-Buck Creek Rep. Todd Huston, R-Fishers Bill summary: The bill requires the Legislative Services Agency (LSA) to: (1) study the combined reporting approach to apportioning income for income tax purposes; and (2) report the results of the study before Oct. 1, 2016, to the Legislative Council and to the Interim Study Committee on Fiscal Policy. It requires the Interim Study Committee on Fiscal Policy to hold at least one public hearing at which the LSA presents the results of the study. Details: The initial draft of the bill included a number of significant changes to how Indiana business income tax is assessed, including unitary or combined income reporting. Many in the business community were opposed to SB 323. The bill has been changed seeking a legislative summer study committee to examine the proposed income tax reporting changes that SB 323 originally addressed. The IBA will be monitoring the progress of these discussions this summer. SB 371 – Probate Matters Sen. Rodric Bray, R-Martinsville Rep. Eric Allan Koch, R-Bedford Bill summary: This bill has the following provisions: Property Tax Considerations: It provides that an individual otherwise qualified for certain property tax deductions for property that the individual occupies as a beneficiary of the trust that owns the property is not required to be considered the owner of the property under the rules of construction for the property tax law for the trust to receive the property tax deduction. Transfer of Certain Inheritance Tax Duties: It transfers certain inheritance tax duties from the probate court, county assessor and county treasurer to the Indiana Department of Revenue with respect to inheritance tax returns filed after March 31, 2016. It revises the inheritance tax allocation statute so that the current allocation between the counties and the state is unaffected by the transfer of inheritance tax duties. Probate Matters: It provides that a will contest must be initiated in the same cause of action. It specifies the priority of a personal representative and stepchildren with respect to the disposition of a decedent’s body and funeral arrangements. It specifies that a court must consider a standby guardian designation when appointing a guardian. It specifies that for purposes of a guardianship appointment, a person designated a standby guardian is second in priority to a person designated in a durable power of attorney. It specifies how property passes in a transfer on death transfer if the beneficiary disclaims the property. It makes technical corrections. Details: The bill makes several positive changes to Indiana probate code. SB 372 – Deficiency Judgments and Foreclosed Property Sen. Rodric Bray, R-Martinsville Rep. Thomas Washburne, R-Evansville Bill summary: This bill provides that the following statutes are not intended to provide the owner of real estate subject to the issuance of process under a judgment or decree of foreclosure any protection or defense against a deficiency judgment for purposes of the borrower protections from liability that must be disclosed on a specified form required by amendments to a federal rule concerning mortgage disclosures: (1) the statutes governing the payoff of, and short sales involving: (a) first-lien mortgage transactions; and (b) consumer credit sales and consumer loans under the Uniform Consumer Credit Code; (2) the statute allowing the owner of real estate subject to the issuance of process under a judgment or decree of foreclosure to waive, with the consent of the judgment holder, the time limitations that would otherwise apply to the issuance of process with respect to the judgment or decree of foreclosure. Details: This bill addresses the fix on deficiency judgments related to the TRID form. BILLS NOT PASSED HB 1349 – Hoosier Employee Retirement Options Portal Rep. Sean Eberhart, R-Shelbyville Bill summary: Hoosier Employee Retirement Options Portal: The bill establishes the Hoosier Employee Retirement Options Portal for the purpose of connecting eligible employers and their employees with approved retirement plans to increase the employees’ retirement savings. Board: The bill establishes the Hoosier Employee Retirement Options Portal board and specifies the seven members to serve on it. It also requires the board, by certain deadlines, to design a plan for the operation of the portal and propose standards for the approval of retirement plans to be available through the portal, and to begin accepting applications from financial services firms that desire to provide retirement plans through the portal. Retirement plans: The bill requires a firm to be licensed or hold a certificate of authority, be in good standing in Indiana, and meet all federal laws and regulations to offer retirement plans through the portal. It requires each financial services firm participating in the portal to offer a minimum of a target date fund and a balanced fund as investment options. The bill also makes requirements of the board regarding portal activation, and requires the portal to provide a range of investment options. The bill additionally specifies employer and employee participation, and establishes the Hoosier Employee Retirement Options Portal Administrative Fund to pay the expenses of the portal. Details: The IBA opposed this bill. This is the third year legislation creating a state-run retirement program has been filed with the support of the AARP. The IBA has a number of concerns with the governmental board that is created and the powers that are provided as it relates to determining what type of retirement products may enter the state portal. The IBA is also concerned about how a state-run retirement portal will operate within the current marketplace for small Continued on page 26.
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