Friday, January 25, 2019
MAJOR NEWS! During the first meeting of the Senate Insurance
and Financial Institutions Committee, lawmakers heard over three hours of
testimony on SB104 to cap payday loans at 36%. Senior Policy Analyst Erin
Macey led the testimony in support, sharing the Institute’s research on the
payday lending business model and what other states have done to curb the cycle
of debt and distress created by payday loans. She concluded, “In short, we have
learned a great deal about payday lending, its consequences, and the reforms
implemented in other states. And we are here to ask Indiana to join the
Department of Defense and 16 other states in offering Hoosiers the strongest
and best protection against predatory lending – a cap of 36%.”
Then, fifteen Hoosiers from all corners of the state representing military associations,
faith groups, civil rights organizations, and non-profits –
including two Indiana Community Action Agencies - testified in support of the bill. Senator Walker, one of the bill’s lead
authors, closed by observing, “It would be shocking to me to have this volume of
testimony and talk about the negative impact on Hoosiers if this is merely a
contextual problem or the fact that we can’t compare apples and oranges when we
talk about APR. Those are the mechanics of what we’re dealing with, but they’re
not the root of what we’re dealing with that has brought together this
coalition of support for looking at this solution.”
The fate of the 36% rate cap is yet unknown. At the end of the hearing, Senator Bassler,
chairman of the committee noted, “my
gut tells me that the status quo will not be maintained” but did not commit to a vote on SB 104.
Last week, Senior Policy Analyst Erin Macey testified in
support of SB338, a bill that will expand
access to On My Way Pre-K. This week, the Senate Education and Career
Development Committee amended the bill to ensure that the changes in the bill
would not result in any loss of federal funds, and also directed the agency to
apply for available waivers that would allow them to implement the changes if
necessary. The committee then voted unanimously
to pass the measure and the bill is now set to receive a hearing in Senate Tax
and Fiscal Policy. We will include the date and time of this hearing in a
future Inside the Statehouse as soon as it is announced.
During the first week of session, the Institute voiced its
support for SB210, a bill that will reduce penalties to reinstate driver’s
licenses. This week, the Senate Corrections and Criminal Law Committee discussed and voted on several amendments. The Institute will continue to follow the bill as it moves on to Senate Tax and Fiscal Policy. If passed, SB210 will reduce barriers to economic
self-sufficiency for Hoosiers across the state by removing exorbitant fees
associated with driving uninsured. The reduction in fees will remove barriers
to receiving insurance, which will ensure that working families have the
ability to drive to work, and successfully navigate through their day to day
lives.
The Institute would like to thank Senators Grooms &
Stoops for joining Sen. Jon Ford as authors, and Senator J.D. Ford for co-authoring
SB440, a TANF (Temporary Assistance for Needy Family) eligibility
bill. We are looking forward to a hearing on SB440 in Senate Family and
Children Services in mid-February. If passed, SB440 would adjust the income
eligibility requirements so that more working families are able to access the
support that they need, and will ensure that TANF payments are annually
adjusted to be consistent with the cost of living in Indiana.
There are many other
exciting bills we’re following, including:
·
HB 1073 and SB 590, which require
employers to provide reasonable accommodations to pregnant workers
·
HB 1032, which creates a statewide
paid family and medical leave program providing 6 weeks of leave
·
And several bills to raise the
minimum wage in Indiana.
Do you love one of
these bills? Ask your state rep or senator to sign on as a coauthor! Find your
lawmaker here.
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Here are our tracked
bills being heard this week.
Reach out to get
engaged if something on this list interests you!
HB1440 LOAN BROKERS (HEATON
R) Reorganizes current provisions regulating loan brokers and moves the
reorganized provisions to a new article, including: (1) the loan broker
regulation account; (2) licensure and notice requirements; (3) education and
examination requirements for licensure; (4) requirements for loan broker
offices, personnel, and conduct of business; and (5) violations and enforcement.
Makes conforming amendments. Repeals the current law regulating loan brokers.
Current
Status: 1/29/2019 - House
Financial Institutions,
Time
& Location:
10:30 AM, Rm. 156-C
HB1447 FINANCIAL INSTITUTIONS AND CONSUMER CREDIT (BURTON
W) Makes various changes to the statutes concerning: (1) first lien
mortgage lenders; (2) persons licensed under the Uniform Consumer Credit Code
(UCCC); (3) rental purchase agreements; (4) debt management companies; (5)
banks; (6) credit unions; (7) pawnbrokers; and (8) money transmitters. Repeals
a provision in the statute concerning rental purchase agreements that specifies
that any up-front payment made by the lessee: (1) must be treated as an initial
rental payment; (2) is subject to the disclosure requirements under the
statute; and (3) may be in a sum larger than a regular rental payment. Repeals
a provision in the UCCC that provides that civil proceeding advance payment
transactions (CPAP transactions) are subject to the UCCC. Strikes all
provisions concerning CPAP transactions from the UCCC. Repeals provisions in
the UCCC that define certain terms relating to CPAP transactions. Moves
language in the UCCC applicable to the licensing of civil proceeding advance
payment providers to the existing statute concerning civil proceeding advance
payments and makes conforming amendments.
Current
Status: 1/29/2019 - House
Financial Institutions,
Time
& Location: 10:30 AM, Rm. 156-C
SB99 WAGE ASSIGNMENTS FOR CLOTHING AND
TOOLS (BOOTS P) Provides that a wage assignment may be made to
pay for the rental or use of uniforms, shirts, pants, other job-related
clothing, equipment, or tools necessary to fulfill the duties of employment.
Current
Status: 1/30/2019 - Senate
Pensions and Labor,
Time
& Location: 9:30 AM, Rm. 233
SB231 DIRECT SALES (MESSMER
M) Excludes a direct seller from the definition of "employee"
for purposes of the minimum wage law. Excepts, under certain conditions, an
individual engaged as a direct seller from receiving unemployment benefits.
Excludes services by direct sellers from the definition of
"employment" under the unemployment compensation system.
Current
Status: 1/30/2019 -
Senate Pensions and Labor
Time
& Location: 9:30 AM,
Rm. 233
