Indiana 2024 Regular Session

Indiana Senate Bill SB0200 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~SB0200.1~~
2		-	~~January 19, 2024~~
	1	+
	2	+	Introduced Version
3	3		SENATE BILL No. 200
4	4		_____
5		-	DIGEST OF ~~SB 200 (Updated January 17, 2024 12:54 pm - DI 55)~~
6		-	Citations Affected: IC 4-13; IC 5-10~~; IC 22-2~~.
	5	+	DIGEST OF INTRODUCED BILL
	6	+	Citations Affected: IC 4-13-2-7; IC 5-10-9.5.
7	7		Synopsis: Nonprofit loan center loans for state employees. Provides
8	8		that not later than: (1) September 1, 2024, in the case of a state agency
9	9		other than a state educational institution or a school corporation; (2)
10	10		September 1, 2025, in the case of a state agency that is a state
11	11		educational institution; or (3) September 1, 2026, in the case of a state
12	12		agency that is a school corporation; a state agency shall partner with
13	13		each nonprofit loan center (NLC) operating in Indiana to become a
14	14		participating employer in the NLC's nonprofit loan center program
15	15		(NLC program) by offering voluntary payroll deductions for eligible
16	16		full-time employees to make payments toward the balance of a
17	17		nonprofit loan center loan (NLC loan) made by a nonprofit loan center
18	18		lender (NLC lender). Provides that after becoming a participating
19	19		employer in an NLC program, a state agency shall allow an eligible
20	20		employee to: (1) voluntarily request and establish payroll deductions
21	21		for an NLC loan at any time; and (2) revoke the employee's
22	22		authorization for payroll deductions for an NLC loan at any time;
23	23		including any time that falls outside a designated open enrollment
24		-	(Continued next page)
25		-	Effective: July 1, 2024.
26		-	Deery, Bassler, Walker G, Qaddoura
27		-	January 9, 2024, read first time and referred to Committee on Insurance and Financial
28		-	Institutions.
29		-	January 18, 2024, amended, reported favorably — Do Pass.
30		-	SB 200—LS 6692/DI 101 Digest Continued
31	24		period for employee benefits. Defines an "NLC loan" as a loan that
32	25		meets certain requirements with respect to the principal amount, loan
33	26		term, finance charge, authorized fees, method of repayment, and other
34	27		loan terms. Authorizes the state comptroller to authorize the electronic
35	28		transfer of funds from the state treasury to a designated NLC lender in
36	29		payment of an NLC loan on behalf of an eligible employee who has
37	30		voluntarily given the state comptroller written authorization, through
38	31		the eligible employee's employing state agency, to make the transfer.
39	32		Specifies that: (1) a loan made under the bill's provisions; or (2) a
	33	+	(Continued next page)
	34	+	Effective: July 1, 2024.
	35	+	Deery
	36	+	January 9, 2024, read first time and referred to Committee on Insurance and Financial
	37	+	Institutions.
	38	+	2024 IN 200—LS 6692/DI 101 Digest Continued
40	39		person that makes a loan under the bill's provisions; is subject to the
41	40		requirements of the Uniform Consumer Credit Code chapter governing
42		-	consumer loans. Provides that a depository institution may make a loan
43		-	under the same terms and conditions that apply with respect to a
44		-	nonprofit loan center loan to an employee of: (1) a state agency; or (2)
45		-	any other employer; as long as the loan is made in compliance with any
46		-	applicable law. Allows a wage assignment to be made for the purpose
47		-	of making payment to a depository institution in repayment of a loan
48		-	that is made to the employee by the depository institution under the
49		-	same terms and conditions that apply with respect to an NLC loan.
50		-	Authorizes the electronic transfer of funds from the state treasury on
51		-	behalf of an employee of a state agency in payment of a loan made by
52		-	a depository institution to the employee under the same terms and
53		-	conditions that apply to an NLC loan.
54		-	SB 200—LS 6692/DI 101SB 200—LS 6692/DI 101 January 19, 2024
	41	+	consumer loans.
	42	+	2024 IN 200—LS 6692/DI 1012024 IN 200—LS 6692/DI 101 Introduced
55	43		Second Regular Session of the 123rd General Assembly (2024)
56	44		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
57	45		Constitution) is being amended, the text of the existing provision will appear in this style type,
58	46		additions will appear in this style type, and deletions will appear in this style type.
59	47		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
60	48		provision adopted), the text of the new provision will appear in this style type. Also, the
61	49		word NEW will appear in that style type in the introductory clause of each SECTION that adds
62	50		a new provision to the Indiana Code or the Indiana Constitution.
63	51		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
64	52		between statutes enacted by the 2023 Regular Session of the General Assembly.
65	53		SENATE BILL No. 200
66	54		A BILL FOR AN ACT to amend the Indiana Code concerning state
67	55		and local administration.
68	56		Be it enacted by the General Assembly of the State of Indiana:
69	57		1 SECTION 1. IC 4-13-2-7, AS AMENDED BY THE TECHNICAL
70	58		2 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
71	59		3 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
72	60		4 Sec. 7. (a) Subject to this chapter and other laws not inconsistent with
73	61		5 this chapter, the auditor of state comptroller shall, respecting all
74	62		6 agencies of the state, do the following:
75	63		7 (1) Maintain the centralized accounting records for the state, keep
76	64		8 the general books of accounts on a double entry basis, and
77	65		9 maintain accounts as will reflect in detail or in summary, all
78	66		10 assets, liabilities, reserves, surpluses, revenues and receipts,
79	67		11 appropriations, allotments, expenditures, and encumbrances
80	68		12 except as otherwise provided in this chapter. The accounting
81	69		13 records and procedures must provide complete fiscal control over
82	70		14 all agencies of the state and over all activities carried on by them
83	71		15 and be upon forms, records, and systems approved by the state
84		-	SB 200—LS 6692/DI 101 2
	72	+	2024 IN 200—LS 6692/DI 101 2
85	73		1 board of accounts.
86	74		2 (2) Examine every receipt, account, bill, claim, refund, and
87	75		3 demand against the state arising from activities carried on by
88	76		4 agencies of the state, approve each legal, correct, and proper
89	77		5 claim, designate the account to be charged therefor, and issue the
90	78		6 auditor's state comptroller's warrant in payment thereof. The
91	79		7 auditor of state comptroller may authorize the disbursement
92	80		8 through electronic funds transfer in conformity with IC 4-8.1-2-7.
93	81		9 All warrants and electronic funds transfers shall be payable to the
94	82		10 vendor or claimant and in no instance shall the auditor state
95	83		11 comptroller issue any warrant or make any electronic funds
96	84		12 transfer payable to an officer or agency in payment of several
97	85		13 claims where the officer is to distribute or pay to the several
98	86		14 claimants the amount due, except in the case of special
99	87		15 disbursement officers as provided for in this chapter. However,
100	88		16 the auditor of state comptroller shall not be required to audit
101	89		17 claims for any refunds made pursuant to IC 6-6-1.1 and
102	90		18 IC 6-6-2.5.
103	91		19 (3) Examine each and every payroll or salary voucher submitted
104	92		20 for payment by each state officer or state agency and shall issue
105	93		21 the auditor's state comptroller's warrant in payment, payable to
106	94		22 the officer or employee or claimant, except as provided in
107	95		23 subdivision (5). In no instance shall the auditor state comptroller
108	96		24 issue the auditor's state comptroller's warrant payable to any
109	97		25 officer or agency in payment of a payroll or schedule to be
110	98		26 distributed or paid to employees by the officer or agency.
111	99		27 (4) Keep an earnings record for each employee that shows gross
112	100		28 compensation, net compensation, items withheld for federal tax,
113	101		29 public employees' retirement, teachers' retirement, or other
114	102		30 retirement, and any other deductions authorized to be deducted
115	103		31 from earnings, and shall, as required by law, make settlement with
116	104		32 the proper officers, agents, or agencies for the deductions.
117	105		33 (5) Authorize the electronic transfer of funds from the state
118	106		34 treasury to a designated deposit account in payment of a payroll
119	107		35 or salary voucher on behalf of a state employee who has given the
120	108		36 auditor state comptroller written authorization to make the
121	109		37 transfer under IC 4-15-5.9-2.
122	110		38 (6) Authorize the electronic transfer of funds from the state
123	111		39 treasury to a designated nonprofit loan center lender (as
124	112		40 defined in IC 5-10-9.5-5) in payment of a nonprofit loan
125	113		41 center loan (as defined in IC 5-10-9.5-6) on behalf of an
126	114		42 eligible employee (as defined in IC 5-10-9.5-3) who has
127		-	SB 200—LS 6692/DI 101 3
	115	+	2024 IN 200—LS 6692/DI 101 3
128	116		1 voluntarily given the state comptroller written authorization,
129	117		2 through the eligible employee's state agency, to make the
130	118		3 transfer under IC 5-10-9.5-10(d).
131		-	4 (7) Authorize the electronic transfer of funds from the state
132		-	5 treasury to a depository institution (as defined in
133		-	6 IC 24-4.5-1-301.5(12)) in payment of a loan that is made to an
134		-	7 employee of a state agency (as defined in IC 5-10-9.5-8) by the
135		-	8 depository institution (as defined in IC 24-4.5-1-301.5(12))
136		-	9 under the same terms and conditions that apply with respect
137		-	10 to a nonprofit loan center loan, as set forth in
138		-	11 IC 5-10-9.5-6(a)(1) through IC 5-10-9.5-6(a)(15), as long as the
139		-	12 employee has voluntarily given the state comptroller written
140		-	13 authorization, through the employee's state agency, to make
141		-	14 the transfer.
142		-	15 (6) (8) Accept all documents and reports showing evidences of
143		-	16 the collection of state revenues by state agencies, evidences of the
144		-	17 deposit of the revenues, and evidences of the receipt thereof by
145		-	18 the treasurer of state and designate the fund or account to be
146		-	19 credited.
147		-	20 (7) (9) Have all other powers and duties respecting all agencies of
148		-	21 the state as may be imposed upon the auditor state comptroller
149		-	22 by law or transferred to the auditor state comptroller by this
150		-	23 chapter.
151		-	24 (b) The auditor of state comptroller may issue a warrant or make
152		-	25 an electronic funds transfer in conformity with IC 4-8.1-2-7 to a person
153		-	26 who:
154		-	27 (1) has a contract with the state; and
155		-	28 (2) is entitled to payment under that contract;
156		-	29 without the certification required by IC 5-11-10-1.
157		-	30 (c) The auditor state comptroller may not issue a warrant or make
158		-	31 an electronic funds transfer under subsection (b) except in accordance
159		-	32 with procedures adopted by the state board of accounts.
160		-	33 (d) The auditor state comptroller is not personally liable for a
161		-	34 warrant issued or an electronic funds transfer made under subsection
162		-	35 (b) if:
163		-	36 (1) the auditor state comptroller complies with the procedures
164		-	37 described in subsection (c); and
165		-	38 (2) funds are appropriated and available to pay the warrant or
166		-	39 electronic funds transfer.
167		-	40 (e) This subsection applies to a payment of less than five thousand
168		-	41 dollars ($5,000). Notwithstanding any other law, the auditor of state
169		-	42 comptroller may elect to:
170		-	SB 200—LS 6692/DI 101 4
171		-	1 (1) not preaudit a payment; and
172		-	2 (2) process the payment with the state agency authorizing the
173		-	3 payment.
174		-	4 The state agency is accountable to the state board of accounts under the
175		-	5 board's post payment auditing procedures.
176		-	6 SECTION 2. IC 5-10-9.5 IS ADDED TO THE INDIANA CODE
177		-	7 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
178		-	8 JULY 1, 2024]:
179		-	9 Chapter 9.5. Payroll Payments to Nonprofit Loan Center
180		-	10 Lenders
181		-	11 Sec. 1. As used in this chapter, "consumer reporting agency that
182		-	12 compiles and maintains files on consumers on a nationwide basis"
183		-	13 has the meaning set forth in 15 U.S.C. 1681a(p).
184		-	14 Sec. 2. As used in this chapter, "depository institution" has the
185		-	15 meaning set forth in IC 24-4.5-1-301.5(12).
186		-	16 Sec. 3. As used in this chapter, "eligible employee" means an
187		-	17 individual who:
188		-	18 (1) is employed full time by a state agency; and
189		-	19 (2) resides in a community in Indiana that is served by a
190		-	20 nonprofit loan center.
191		-	21 Sec. 4. As used in this chapter, "nonprofit loan center", or
192		-	22 "NLC", means a nonprofit organization that operates a nonprofit
193		-	23 loan center program that is offered to residents in one (1) or more
194		-	24 communities in Indiana.
195		-	25 Sec. 5. As used in this chapter, "nonprofit loan center lender",
196		-	26 or "NLC lender", means a lender that is:
197		-	27 (1) licensed by the department of financial institutions under
198		-	28 IC 24-4.5-3; and
199		-	29 (2) regularly engaged in making nonprofit loan center loans
200		-	30 through a nonprofit loan center program.
201		-	31 Sec. 6. (a) As used in this chapter, "nonprofit loan center loan",
202		-	32 or "NLC loan", means a loan that is offered through a nonprofit
203		-	33 loan center program and that meets the following requirements:
204		-	34 (1) The loan is made primarily for personal, family, or
205		-	35 household purposes.
206		-	36 (2) The principal (as defined in IC 24-4.5-3-107(3)) of the loan
207		-	37 does not exceed one thousand dollars ($1,000).
208		-	38 (3) The term of the loan is at least twelve (12) months.
209		-	39 (4) The loan finance charge, calculated according to the
210		-	40 actuarial method, does not exceed eighteen percent (18%) per
211		-	41 year on the unpaid balances of the principal (as defined in
212		-	42 IC 24-4.5-3-107(3)).
213		-	SB 200—LS 6692/DI 101 5
214		-	1 (5) Any prepaid finance charge (however denominated by the
215		-	2 NLC lender) that is imposed under IC 24-4.5-3-201(3)(d):
216		-	3 (A) does not exceed thirty-five dollars ($35); and
217		-	4 (B) notwithstanding IC 24-4.5-3-201(10), may, at the
218		-	5 option of the NLC lender, be refunded to the borrower
219		-	6 upon the borrower's completion of one (1) or more
220		-	7 consumer financial education courses.
221		-	8 (6) The loan is not subject to any additional permitted charges
222		-	9 under IC 24-4.5-3-202 other than the charge permitted under
223		-	10 IC 24-4.5-3-202(1)(f) for each returned payment by a bank or
224		-	11 other depository institution of a dishonored check, electronic
225		-	12 funds transfer, negotiable order of withdrawal, or share draft
226		-	13 issued by the borrower, as applicable.
227		-	14 (7) The loan is not subject to any other fees or charges not
228		-	15 described in subdivisions (4) through (6) other than the
229		-	16 following, at the option of the NLC lender:
230		-	17 (A) A delinquency charge permitted under
231		-	18 IC 24-4.5-3-203.5 on any installment or minimum payment
232		-	19 due that is not paid in full not later than ten (10) days after
233		-	20 its scheduled due date.
234		-	21 (B) An application fee or administrative fee (however
235		-	22 denominated by the NLC lender) that:
236		-	23 (i) does not exceed thirty-five dollars ($35);
237		-	24 (ii) is not a condition for, or an incident to, the extension
238		-	25 of credit; and
239		-	26 (iii) is imposed by the NLC lender on all applicants for a
240		-	27 loan, regardless of whether a loan is made.
241		-	28 (8) The NLC lender does not take a security interest in any
242		-	29 real or personal property of the borrower in connection with
243		-	30 the loan.
244		-	31 (9) The borrower is not subject to a credit check, or any other
245		-	32 investigation into the borrower's creditworthiness, in
246		-	33 connection with the loan application, other than verification
247		-	34 that the borrower:
248		-	35 (A) is employed full time by an employer that participates
249		-	36 in the nonprofit loan center program;
250		-	37 (B) has an open checking account in a depository
251		-	38 institution; and
252		-	39 (C) meets any applicable monthly gross income
253		-	40 requirements that the NLC lender has established with
254		-	41 respect to different loan amounts or ranges of loan
255		-	42 amounts.
256		-	SB 200—LS 6692/DI 101 6
257		-	1 (10) The loan application may be completed online through
258		-	2 the NLC lender's website.
259		-	3 (11) The proceeds of the loan are deposited directly into the
260		-	4 borrower's checking account with a depository institution.
261		-	5 (12) Repayment of the loan may be made through payroll
262		-	6 deductions that:
263		-	7 (A) are made by the borrower's employer on the
264		-	8 borrower's behalf; and
265		-	9 (B) are:
266		-	10 (i) voluntarily authorized by the borrower; and
267		-	11 (ii) revokable by the borrower at any time;
268		-	12 in compliance with IC 24-4.5-3-403.
269		-	13 (13) Approval of the loan is not conditioned on the borrower's
270		-	14 authorization of payroll deductions for repayment of the loan.
271		-	15 (14) The loan is not subject to a prepayment penalty or fee.
272		-	16 (15) The borrower's payments on the loan are reported to at
273		-	17 least one (1) consumer reporting agency that compiles and
274		-	18 maintains files on consumers on a nationwide basis.
275		-	19 (b) The term does not include a small loan (as defined in
276		-	20 IC 24-4.5-7-104) that is subject to IC 24-4.5-7.
277		-	21 Sec. 7. As used in this chapter, "nonprofit loan center
278		-	22 program", or "NLC program", means a loan program that is:
279		-	23 (1) operated by a nonprofit loan center and offered to
280		-	24 residents in one (1) or more communities in Indiana; and
281		-	25 (2) made available:
282		-	26 (A) by one (1) or more employers that partner with a
283		-	27 nonprofit loan center lender that makes loans through the
284		-	28 program; and
285		-	29 (B) to employees as an employee benefit;
286		-	30 at no cost to the employer.
287		-	31 Sec. 8. (a) As used in this chapter, "state agency" means any
288		-	32 authority, board, branch, commission, committee, department,
289		-	33 division, or other instrumentality of the executive (including the
290		-	34 administrative), judicial, or legislative branch of state government.
291		-	35 The term includes the following:
292		-	36 (1) A state elected official's office.
293		-	37 (2) A state educational institution (as defined in
294		-	38 IC 21-7-13-32).
295		-	39 (3) A body corporate and politic of the state created by state
296		-	40 statute.
297		-	41 (b) The term does not include a political subdivision (as defined
298		-	42 in IC 36-1-2-13), except for a school corporation (as defined in
299		-	SB 200—LS 6692/DI 101 7
300		-	1 IC 36-1-2-17).
301		-	2 Sec. 9. As used in this chapter, "statewide coordinator" means
302		-	3 a nonprofit organization that is responsible for:
303		-	4 (1) recruiting local lenders;
304		-	5 (2) engaging employers;
305		-	6 (3) raising additional capital for lending through local NLC
306		-	7 lenders; and
307		-	8 (4) providing other support for local NLC lenders;
308		-	9 in connection with NLC programs in Indiana.
309		-	10 Sec. 10. (a) Not later than:
310		-	11 (1) September 1, 2024, in the case of a state agency that is not:
311		-	12 (A) a state educational institution (as defined in
312		-	13 IC 21-7-13-32); or
313		-	14 (B) a school corporation (as defined in IC 36-1-2-17);
314		-	15 (2) September 1, 2025, in the case of a state agency that is a
315		-	16 state educational institution (as defined in IC 21-7-13-32); or
316		-	17 (3) September 1, 2026, in the case of a state agency that is a
317		-	18 school corporation (as defined in IC 36-1-2-17);
318		-	19 a state agency shall partner with each NLC operating in Indiana to
319		-	20 become a participating employer in the NLC's nonprofit loan
320		-	21 center program by offering voluntary payroll deductions for
321		-	22 eligible employees who enter into an NLC loan offered by an NLC
322		-	23 lender.
323		-	24 (b) The statewide coordinator shall provide any necessary
324		-	25 assistance to enable state agencies to become participating
325		-	26 employers in each NLC program operating in Indiana, as required
326		-	27 by subsection (a). In providing assistance under this subsection, the
327		-	28 statewide coordinator may work with any of the following, as
328		-	29 appropriate:
329		-	30 (1) An individual state agency, including:
330		-	31 (A) the board of trustees for an individual state
331		-	32 educational institution (as defined in IC 21-7-13-32); or
332		-	33 (B) the governing body of a school corporation (as defined
333		-	34 in IC 36-1-2-17).
334		-	35 (2) The state personnel department.
335		-	36 (3) The legislative council.
336		-	37 (4) The office of judicial administration.
337		-	38 (5) Individual NLC lenders making loans through the NLC
338		-	39 program.
339		-	40 (c) After becoming a participating employer as required under
340		-	41 subsection (a), a state agency shall offer as an employee benefit the
341		-	42 opportunity for the state agency's eligible employees to make
342		-	SB 200—LS 6692/DI 101 8
343		-	1 payments toward the balance of an NLC loan through voluntary
344		-	2 recurring payroll deductions under IC 22-2-6-2(b)(10). A state
345		-	3 agency shall:
346		-	4 (1) allow an eligible employee to:
347		-	5 (A) voluntarily request and establish payroll deductions
348		-	6 under this subsection at any time; and
349		-	7 (B) revoke the employee's authorization for payroll
350		-	8 deductions under this subsection at any time;
351		-	9 including any time that falls outside a designated open
352		-	10 enrollment period for employee benefits, in the manner set
353		-	11 forth in subsection (d); and
354		-	12 (2) agree, in a signed writing, to an employee's request for
355		-	13 payroll deductions under this subsection, as required by
356		-	14 IC 22-2-6-2(a)(1)(D).
357		-	15 The statewide coordinator shall provide any necessary assistance
358		-	16 to enable state agencies to offer and administer payroll deductions
359		-	17 under this subsection, including by communicating or promoting
360		-	18 the availability of the payroll deductions as an employee benefit for
361		-	19 eligible employees. In providing this assistance, the statewide
362		-	20 coordinator may work with any of the entities set forth in
363		-	21 subsection (b)(1) through (b)(5).
364		-	22 (d) Upon receiving approval for an NLC loan, an eligible
365		-	23 employee may make a written request, in accordance with
366		-	24 IC 22-2-6-2(a), to the state agency employing the eligible employee,
367		-	25 that a specified portion of any compensation due from the state
368		-	26 agency to the eligible employee be credited to the eligible
369		-	27 employee's account with the applicable NLC lender to be applied
370		-	28 as payment toward the NLC loan balance. Upon receipt of an
371		-	29 eligible employee's request to a state agency under this subsection,
372		-	30 the state comptroller, or another appropriate official or payroll
373		-	31 administrator, shall:
374		-	32 (1) draw a warrant in favor of the NLC lender set forth in the
375		-	33 eligible employee's request;
376		-	34 (2) in the event more than one (1) eligible employee of the
377		-	35 state agency designates the same NLC lender, draw a single
378		-	36 warrant in favor of the NLC lender for the total amount due
379		-	37 on behalf of the eligible employees and transmit the warrant
380		-	38 to the NLC lender identifying each eligible employee and the
381		-	39 amount to be credited to each eligible employee's account; or
382		-	40 (3) make a direct deposit to the NLC lender by electronic
383		-	41 funds transfer;
384		-	42 in the manner set forth in IC 4-15-5.9-2(a). An eligible employee's
385		-	SB 200—LS 6692/DI 101 9
386		-	1 written or electronic request under this subsection shall authorize
387		-	2 in advance the direct credit by warrant or electronic funds transfer
388		-	3 of the specified portion of the eligible employee's earnings each
389		-	4 time a payroll warrant or electronic funds transfer is issued on the
390		-	5 eligible employee's behalf. The eligible employee's written or
391		-	6 electronic authorization must designate an NLC lender and an
392		-	7 account number to which the payment is to be credited. The
393		-	8 eligible employee's authorization remains in effect until the eligible
394		-	9 employee revokes it in writing or by electronic means.
395		-	10 Sec. 11. Any:
396		-	11 (1) loan made under this chapter; or
397		-	12 (2) person (as defined in IC 24-4.5-1-301.5) that makes a loan
398		-	13 under this chapter;
399		-	14 is subject to the requirements of IC 24-4.5-3 and any related rules,
400		-	15 orders, or guidance documents adopted or issued by the
401		-	16 department of financial institutions.
402		-	17 Sec. 12. This chapter does not prohibit a depository institution
403		-	18 (as defined in IC 24-4.5-1-301.5(12)) from making a loan under the
404		-	19 same terms and conditions that apply with respect to an NLC loan,
405		-	20 as set forth in section 6(a)(1) through 6(a)(15) of this chapter, to an
406		-	21 employee of:
407		-	22 (1) a state agency; or
408		-	23 (2) any other employer;
409		-	24 as long as the loan is made in compliance with any applicable law.
410		-	25 SECTION 3. IC 22-2-6-2, AS AMENDED BY P.L.147-2019,
411		-	26 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
412		-	27 JULY 1, 2024]: Sec. 2. (a) Any assignment of the wages of an
413		-	28 employee is valid only if all of the following conditions are satisfied:
414		-	29 (1) The assignment is:
415		-	30 (A) in writing;
416		-	31 (B) signed by the employee personally;
417		-	32 (C) by its terms revocable at any time by the employee upon
418		-	33 written notice to the employer; and
419		-	34 (D) agreed to in writing by the employer.
420		-	35 (2) An executed copy of the assignment is delivered to the
421		-	36 employer within ten (10) days after its execution.
422		-	37 (3) The assignment is made for a purpose described in subsection
423		-	38 (b).
424		-	39 (b) A wage assignment under this section may be made for the
425		-	40 purpose of paying any of the following:
426		-	41 (1) Premium on a policy of insurance obtained for the employee
427		-	42 by the employer.
428		-	SB 200—LS 6692/DI 101 10
429		-	1 (2) Pledge or contribution of the employee to a charitable or
430		-	2 nonprofit organization.
431		-	3 (3) Purchase price of bonds or securities, issued or guaranteed by
432		-	4 the United States.
433		-	5 (4) Purchase price of shares of stock, or fractional interests in
434		-	6 shares of stock, of the employing company, or of a company
435		-	7 owning the majority of the issued and outstanding stock of the
436		-	8 employing company, whether purchased from such company, in
437		-	9 the open market or otherwise. However, if such shares are to be
438		-	10 purchased on installments pursuant to a written purchase
439		-	11 agreement, the employee has the right under the purchase
440		-	12 agreement at any time before completing purchase of such shares
441		-	13 to cancel said agreement and to have repaid promptly the amount
442		-	14 of all installment payments which theretofore have been made.
443		-	15 (5) Dues to become owing by the employee to a labor
444		-	16 organization of which the employee is a member.
445		-	17 (6) Purchase price of merchandise, goods, or food offered by the
446		-	18 employer and sold to the employee, for the employee's benefit,
447		-	19 use, or consumption, at the written request of the employee.
448		-	20 (7) Amount of a loan made to the employee by the employer and
449		-	21 evidenced by a written instrument executed by the employee
450		-	22 subject to the amount limits set forth in section 4(c) of this
451		-	23 chapter.
452		-	24 (8) Contributions, assessments, or dues of the employee to a
453		-	25 hospital service or a surgical or medical expense plan or to an
454		-	26 employees' association, trust, or plan existing for the purpose of
455		-	27 paying pensions or other benefits to said employee or to others
456		-	28 designated by the employee.
457		-	29 (9) Payment to any credit union, nonprofit organizations, or
458		-	30 associations of employees of such employer organized under any
459		-	31 law of this state or of the United States.
460		-	32 (10) Payment to any person or organization regulated under the
461		-	33 Uniform Consumer Credit Code (IC 24-4.5) for deposit or credit
462		-	34 to the employee's account by electronic transfer or as otherwise
463		-	35 designated by the employee.
464		-	36 (11) Payment to a depository institution (as defined in
465		-	37 IC 24-4.5-1-301.5(12)) in repayment of a loan that is made to
466		-	38 the employee by the depository institution (as defined in
467		-	39 IC 24-4.5-1-301.5(12)) under the same terms and conditions
468		-	40 that apply with respect to a nonprofit loan center loan, as set
469		-	41 forth in section IC 5-10-9.5-6(a)(1) through
470		-	42 IC 5-10-9.5-6(a)(15).
471		-	SB 200—LS 6692/DI 101 11
472		-	1 (11) (12) Premiums on policies of insurance and annuities
473		-	2 purchased by the employee on the employee's life.
474		-	3 (12) (13) The purchase price of shares or fractional interest in
475		-	4 shares in one (1) or more mutual funds.
476		-	5 (13) (14) A judgment owed by the employee if the payment:
477		-	6 (A) is made in accordance with an agreement between the
478		-	7 employee and the creditor; and
479		-	8 (B) is not a garnishment under IC 34-25-3.
480		-	9 (14) (15) The purchase, rental, or use of uniforms, shirts, pants,
481		-	10 or other job-related job related clothing at an amount not to
482		-	11 exceed the direct cost paid by an employer to an external vendor
483		-	12 for those items.
484		-	13 (15) (16) The purchase of equipment or tools necessary to fulfill
485		-	14 the duties of employment at an amount not to exceed the direct
486		-	15 cost paid by an employer to an external vendor for those items.
487		-	16 (16) (17) Reimbursement for education or employee skills
488		-	17 training. However, a wage assignment may not be made if the
489		-	18 education or employee skills training benefits were provided, in
490		-	19 whole or in part, through an economic development incentive
491		-	20 from any federal, state, or local program.
492		-	21 (17) (18) An advance for:
493		-	22 (A) payroll; or
494		-	23 (B) vacation;
495		-	24 pay.
496		-	25 (18) (19) The employee's drug education and addiction treatment
497		-	26 services under IC 12-23-23.
498		-	27 (c) The interest rate charged on amounts loaned or advanced to an
499		-	28 employee and repaid under subsection (b) may not exceed the bank
500		-	29 prime loan interest rate as reported by the Board of Governors of the
501		-	30 Federal Reserve System or any successor rate, plus four percent (4%).
502		-	31 (d) The total amount of wages subject to assignment under
503		-	32 subsection (b)(14) and (b)(15) and (b)(16) may not exceed the lesser
504		-	33 of:
505		-	34 (1) two thousand five hundred dollars ($2,500) per year; or
506		-	35 (2) five percent (5%) of the employee's weekly disposable
507		-	36 earnings (as defined in IC 24-4.5-5-105(1)(a)).
508		-	37 (e) Except as provided under 29 CFR Parts 1910, 1915, 1917, 1918,
509		-	38 and 1926, an employee shall not be charged or subject to a wage
510		-	39 assignment under subsection (b)(14) or (b)(15) or (b)(16) for
511		-	40 protective equipment including personal protective equipment
512		-	41 identified under 29 CFR Parts 1910, 1915, 1917, 1918, and 1926.
513		-	SB 200—LS 6692/DI 101 12
514		-	COMMITTEE REPORT
515		-	Madam President: The Senate Committee on Insurance and
516		-	Financial Institutions, to which was referred Senate Bill No. 200, has
517		-	had the same under consideration and begs leave to report the same
518		-	back to the Senate with the recommendation that said bill be
519		-	AMENDED as follows:
520		-	Page 3, between lines 3 and 4, begin a new line block indented and
521		-	insert:
522		-	"(7) Authorize the electronic transfer of funds from the state
523		-	treasury to a depository institution (as defined in
524		-	IC 24-4.5-1-301.5(12)) in payment of a loan that is made to an
525		-	employee of a state agency (as defined in IC 5-10-9.5-8) by the
526		-	depository institution (as defined in IC 24-4.5-1-301.5(12))
527		-	under the same terms and conditions that apply with respect
528		-	to a nonprofit loan center loan, as set forth in
529		-	IC 5-10-9.5-6(a)(1) through IC 5-10-9.5-6(a)(15), as long as the
530		-	employee has voluntarily given the state comptroller written
531		-	authorization, through the employee's state agency, to make
532		-	the transfer.".
533		-	Page 3, line 4, delete "(7)" and insert "(8)".
534		-	Page 3, line 9, delete "(8)" and insert "(9)".
535		-	Page 9, after line 5, begin a new paragraph and insert:
536		-	"Sec. 12. This chapter does not prohibit a depository institution
537		-	(as defined in IC 24-4.5-1-301.5(12)) from making a loan under the
538		-	same terms and conditions that apply with respect to an NLC loan,
539		-	as set forth in section 6(a)(1) through 6(a)(15) of this chapter, to an
540		-	employee of:
541		-	(1) a state agency; or
542		-	(2) any other employer;
543		-	as long as the loan is made in compliance with any applicable law.
544		-	SECTION 3. IC 22-2-6-2, AS AMENDED BY P.L.147-2019,
545		-	SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
546		-	JULY 1, 2024]: Sec. 2. (a) Any assignment of the wages of an
547		-	employee is valid only if all of the following conditions are satisfied:
548		-	(1) The assignment is:
549		-	(A) in writing;
550		-	(B) signed by the employee personally;
551		-	(C) by its terms revocable at any time by the employee upon
552		-	written notice to the employer; and
553		-	(D) agreed to in writing by the employer.
554		-	(2) An executed copy of the assignment is delivered to the
555		-	employer within ten (10) days after its execution.
556		-	SB 200—LS 6692/DI 101 13
557		-	(3) The assignment is made for a purpose described in subsection
558		-	(b).
559		-	(b) A wage assignment under this section may be made for the
560		-	purpose of paying any of the following:
561		-	(1) Premium on a policy of insurance obtained for the employee
562		-	by the employer.
563		-	(2) Pledge or contribution of the employee to a charitable or
564		-	nonprofit organization.
565		-	(3) Purchase price of bonds or securities, issued or guaranteed by
566		-	the United States.
567		-	(4) Purchase price of shares of stock, or fractional interests in
568		-	shares of stock, of the employing company, or of a company
569		-	owning the majority of the issued and outstanding stock of the
570		-	employing company, whether purchased from such company, in
571		-	the open market or otherwise. However, if such shares are to be
572		-	purchased on installments pursuant to a written purchase
573		-	agreement, the employee has the right under the purchase
574		-	agreement at any time before completing purchase of such shares
575		-	to cancel said agreement and to have repaid promptly the amount
576		-	of all installment payments which theretofore have been made.
577		-	(5) Dues to become owing by the employee to a labor
578		-	organization of which the employee is a member.
579		-	(6) Purchase price of merchandise, goods, or food offered by the
580		-	employer and sold to the employee, for the employee's benefit,
581		-	use, or consumption, at the written request of the employee.
582		-	(7) Amount of a loan made to the employee by the employer and
583		-	evidenced by a written instrument executed by the employee
584		-	subject to the amount limits set forth in section 4(c) of this
585		-	chapter.
586		-	(8) Contributions, assessments, or dues of the employee to a
587		-	hospital service or a surgical or medical expense plan or to an
588		-	employees' association, trust, or plan existing for the purpose of
589		-	paying pensions or other benefits to said employee or to others
590		-	designated by the employee.
591		-	(9) Payment to any credit union, nonprofit organizations, or
592		-	associations of employees of such employer organized under any
593		-	law of this state or of the United States.
594		-	(10) Payment to any person or organization regulated under the
595		-	Uniform Consumer Credit Code (IC 24-4.5) for deposit or credit
596		-	to the employee's account by electronic transfer or as otherwise
597		-	designated by the employee.
598		-	(11) Payment to a depository institution (as defined in
599		-	SB 200—LS 6692/DI 101 14
600		-	IC 24-4.5-1-301.5(12)) in repayment of a loan that is made to
601		-	the employee by the depository institution (as defined in
602		-	IC 24-4.5-1-301.5(12)) under the same terms and conditions
603		-	that apply with respect to a nonprofit loan center loan, as set
604		-	forth in section IC 5-10-9.5-6(a)(1) through
605		-	IC 5-10-9.5-6(a)(15).
606		-	(11) (12) Premiums on policies of insurance and annuities
607		-	purchased by the employee on the employee's life.
608		-	(12) (13) The purchase price of shares or fractional interest in
609		-	shares in one (1) or more mutual funds.
610		-	(13) (14) A judgment owed by the employee if the payment:
611		-	(A) is made in accordance with an agreement between the
612		-	employee and the creditor; and
613		-	(B) is not a garnishment under IC 34-25-3.
614		-	(14) (15) The purchase, rental, or use of uniforms, shirts, pants,
615		-	or other job-related job related clothing at an amount not to
616		-	exceed the direct cost paid by an employer to an external vendor
617		-	for those items.
618		-	(15) (16) The purchase of equipment or tools necessary to fulfill
619		-	the duties of employment at an amount not to exceed the direct
620		-	cost paid by an employer to an external vendor for those items.
621		-	(16) (17) Reimbursement for education or employee skills
622		-	training. However, a wage assignment may not be made if the
623		-	education or employee skills training benefits were provided, in
624		-	whole or in part, through an economic development incentive
625		-	from any federal, state, or local program.
626		-	(17) (18) An advance for:
627		-	(A) payroll; or
628		-	(B) vacation;
629		-	pay.
630		-	(18) (19) The employee's drug education and addiction treatment
631		-	services under IC 12-23-23.
632		-	(c) The interest rate charged on amounts loaned or advanced to an
633		-	employee and repaid under subsection (b) may not exceed the bank
634		-	prime loan interest rate as reported by the Board of Governors of the
635		-	Federal Reserve System or any successor rate, plus four percent (4%).
636		-	(d) The total amount of wages subject to assignment under
637		-	subsection (b)(14) and (b)(15) and (b)(16) may not exceed the lesser
638		-	of:
639		-	(1) two thousand five hundred dollars ($2,500) per year; or
640		-	(2) five percent (5%) of the employee's weekly disposable
641		-	earnings (as defined in IC 24-4.5-5-105(1)(a)).
642		-	SB 200—LS 6692/DI 101 15
643		-	(e) Except as provided under 29 CFR Parts 1910, 1915, 1917, 1918,
644		-	and 1926, an employee shall not be charged or subject to a wage
645		-	assignment under subsection (b)(14) or (b)(15) or (b)(16) for
646		-	protective equipment including personal protective equipment
647		-	identified under 29 CFR Parts 1910, 1915, 1917, 1918, and 1926.".
648		-	and when so amended that said bill do pass.
649		-	(Reference is to SB 200 as introduced.)
650		-	BALDWIN, Chairperson
651		-	Committee Vote: Yeas 8, Nays 0.
652		-	SB 200—LS 6692/DI 101
	119	+	4 (6) (7) Accept all documents and reports showing evidences of
	120	+	5 the collection of state revenues by state agencies, evidences of the
	121	+	6 deposit of the revenues, and evidences of the receipt thereof by
	122	+	7 the treasurer of state and designate the fund or account to be
	123	+	8 credited.
	124	+	9 (7) (8) Have all other powers and duties respecting all agencies of
	125	+	10 the state as may be imposed upon the auditor state comptroller
	126	+	11 by law or transferred to the auditor state comptroller by this
	127	+	12 chapter.
	128	+	13 (b) The auditor of state comptroller may issue a warrant or make
	129	+	14 an electronic funds transfer in conformity with IC 4-8.1-2-7 to a person
	130	+	15 who:
	131	+	16 (1) has a contract with the state; and
	132	+	17 (2) is entitled to payment under that contract;
	133	+	18 without the certification required by IC 5-11-10-1.
	134	+	19 (c) The auditor state comptroller may not issue a warrant or make
	135	+	20 an electronic funds transfer under subsection (b) except in accordance
	136	+	21 with procedures adopted by the state board of accounts.
	137	+	22 (d) The auditor state comptroller is not personally liable for a
	138	+	23 warrant issued or an electronic funds transfer made under subsection
	139	+	24 (b) if:
	140	+	25 (1) the auditor state comptroller complies with the procedures
	141	+	26 described in subsection (c); and
	142	+	27 (2) funds are appropriated and available to pay the warrant or
	143	+	28 electronic funds transfer.
	144	+	29 (e) This subsection applies to a payment of less than five thousand
	145	+	30 dollars ($5,000). Notwithstanding any other law, the auditor of state
	146	+	31 comptroller may elect to:
	147	+	32 (1) not preaudit a payment; and
	148	+	33 (2) process the payment with the state agency authorizing the
	149	+	34 payment.
	150	+	35 The state agency is accountable to the state board of accounts under the
	151	+	36 board's post payment auditing procedures.
	152	+	37 SECTION 2. IC 5-10-9.5 IS ADDED TO THE INDIANA CODE
	153	+	38 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
	154	+	39 JULY 1, 2024]:
	155	+	40 Chapter 9.5. Payroll Payments to Nonprofit Loan Center
	156	+	41 Lenders
	157	+	42 Sec. 1. As used in this chapter, "consumer reporting agency that
	158	+	2024 IN 200—LS 6692/DI 101 4
	159	+	1 compiles and maintains files on consumers on a nationwide basis"
	160	+	2 has the meaning set forth in 15 U.S.C. 1681a(p).
	161	+	3 Sec. 2. As used in this chapter, "depository institution" has the
	162	+	4 meaning set forth in IC 24-4.5-1-301.5(12).
	163	+	5 Sec. 3. As used in this chapter, "eligible employee" means an
	164	+	6 individual who:
	165	+	7 (1) is employed full time by a state agency; and
	166	+	8 (2) resides in a community in Indiana that is served by a
	167	+	9 nonprofit loan center.
	168	+	10 Sec. 4. As used in this chapter, "nonprofit loan center", or
	169	+	11 "NLC", means a nonprofit organization that operates a nonprofit
	170	+	12 loan center program that is offered to residents in one (1) or more
	171	+	13 communities in Indiana.
	172	+	14 Sec. 5. As used in this chapter, "nonprofit loan center lender",
	173	+	15 or "NLC lender", means a lender that is:
	174	+	16 (1) licensed by the department of financial institutions under
	175	+	17 IC 24-4.5-3; and
	176	+	18 (2) regularly engaged in making nonprofit loan center loans
	177	+	19 through a nonprofit loan center program.
	178	+	20 Sec. 6. (a) As used in this chapter, "nonprofit loan center loan",
	179	+	21 or "NLC loan", means a loan that is offered through a nonprofit
	180	+	22 loan center program and that meets the following requirements:
	181	+	23 (1) The loan is made primarily for personal, family, or
	182	+	24 household purposes.
	183	+	25 (2) The principal (as defined in IC 24-4.5-3-107(3)) of the loan
	184	+	26 does not exceed one thousand dollars ($1,000).
	185	+	27 (3) The term of the loan is at least twelve (12) months.
	186	+	28 (4) The loan finance charge, calculated according to the
	187	+	29 actuarial method, does not exceed eighteen percent (18%) per
	188	+	30 year on the unpaid balances of the principal (as defined in
	189	+	31 IC 24-4.5-3-107(3)).
	190	+	32 (5) Any prepaid finance charge (however denominated by the
	191	+	33 NLC lender) that is imposed under IC 24-4.5-3-201(3)(d):
	192	+	34 (A) does not exceed thirty-five dollars ($35); and
	193	+	35 (B) notwithstanding IC 24-4.5-3-201(10), may, at the
	194	+	36 option of the NLC lender, be refunded to the borrower
	195	+	37 upon the borrower's completion of one (1) or more
	196	+	38 consumer financial education courses.
	197	+	39 (6) The loan is not subject to any additional permitted charges
	198	+	40 under IC 24-4.5-3-202 other than the charge permitted under
	199	+	41 IC 24-4.5-3-202(1)(f) for each returned payment by a bank or
	200	+	42 other depository institution of a dishonored check, electronic
	201	+	2024 IN 200—LS 6692/DI 101 5
	202	+	1 funds transfer, negotiable order of withdrawal, or share draft
	203	+	2 issued by the borrower, as applicable.
	204	+	3 (7) The loan is not subject to any other fees or charges not
	205	+	4 described in subdivisions (4) through (6) other than the
	206	+	5 following, at the option of the NLC lender:
	207	+	6 (A) A delinquency charge permitted under
	208	+	7 IC 24-4.5-3-203.5 on any installment or minimum payment
	209	+	8 due that is not paid in full not later than ten (10) days after
	210	+	9 its scheduled due date.
	211	+	10 (B) An application fee or administrative fee (however
	212	+	11 denominated by the NLC lender) that:
	213	+	12 (i) does not exceed thirty-five dollars ($35);
	214	+	13 (ii) is not a condition for, or an incident to, the extension
	215	+	14 of credit; and
	216	+	15 (iii) is imposed by the NLC lender on all applicants for a
	217	+	16 loan, regardless of whether a loan is made.
	218	+	17 (8) The NLC lender does not take a security interest in any
	219	+	18 real or personal property of the borrower in connection with
	220	+	19 the loan.
	221	+	20 (9) The borrower is not subject to a credit check, or any other
	222	+	21 investigation into the borrower's creditworthiness, in
	223	+	22 connection with the loan application, other than verification
	224	+	23 that the borrower:
	225	+	24 (A) is employed full time by an employer that participates
	226	+	25 in the nonprofit loan center program;
	227	+	26 (B) has an open checking account in a depository
	228	+	27 institution; and
	229	+	28 (C) meets any applicable monthly gross income
	230	+	29 requirements that the NLC lender has established with
	231	+	30 respect to different loan amounts or ranges of loan
	232	+	31 amounts.
	233	+	32 (10) The loan application may be completed online through
	234	+	33 the NLC lender's website.
	235	+	34 (11) The proceeds of the loan are deposited directly into the
	236	+	35 borrower's checking account with a depository institution.
	237	+	36 (12) Repayment of the loan may be made through payroll
	238	+	37 deductions that:
	239	+	38 (A) are made by the borrower's employer on the
	240	+	39 borrower's behalf; and
	241	+	40 (B) are:
	242	+	41 (i) voluntarily authorized by the borrower; and
	243	+	42 (ii) revokable by the borrower at any time;
	244	+	2024 IN 200—LS 6692/DI 101 6
	245	+	1 in compliance with IC 24-4.5-3-403.
	246	+	2 (13) Approval of the loan is not conditioned on the borrower's
	247	+	3 authorization of payroll deductions for repayment of the loan.
	248	+	4 (14) The loan is not subject to a prepayment penalty or fee.
	249	+	5 (15) The borrower's payments on the loan are reported to at
	250	+	6 least one (1) consumer reporting agency that compiles and
	251	+	7 maintains files on consumers on a nationwide basis.
	252	+	8 (b) The term does not include a small loan (as defined in
	253	+	9 IC 24-4.5-7-104) that is subject to IC 24-4.5-7.
	254	+	10 Sec. 7. As used in this chapter, "nonprofit loan center
	255	+	11 program", or "NLC program", means a loan program that is:
	256	+	12 (1) operated by a nonprofit loan center and offered to
	257	+	13 residents in one (1) or more communities in Indiana; and
	258	+	14 (2) made available:
	259	+	15 (A) by one (1) or more employers that partner with a
	260	+	16 nonprofit loan center lender that makes loans through the
	261	+	17 program; and
	262	+	18 (B) to employees as an employee benefit;
	263	+	19 at no cost to the employer.
	264	+	20 Sec. 8. (a) As used in this chapter, "state agency" means any
	265	+	21 authority, board, branch, commission, committee, department,
	266	+	22 division, or other instrumentality of the executive (including the
	267	+	23 administrative), judicial, or legislative branch of state government.
	268	+	24 The term includes the following:
	269	+	25 (1) A state elected official's office.
	270	+	26 (2) A state educational institution (as defined in
	271	+	27 IC 21-7-13-32).
	272	+	28 (3) A body corporate and politic of the state created by state
	273	+	29 statute.
	274	+	30 (b) The term does not include a political subdivision (as defined
	275	+	31 in IC 36-1-2-13), except for a school corporation (as defined in
	276	+	32 IC 36-1-2-17).
	277	+	33 Sec. 9. As used in this chapter, "statewide coordinator" means
	278	+	34 a nonprofit organization that is responsible for:
	279	+	35 (1) recruiting local lenders;
	280	+	36 (2) engaging employers;
	281	+	37 (3) raising additional capital for lending through local NLC
	282	+	38 lenders; and
	283	+	39 (4) providing other support for local NLC lenders;
	284	+	40 in connection with NLC programs in Indiana.
	285	+	41 Sec. 10. (a) Not later than:
	286	+	42 (1) September 1, 2024, in the case of a state agency that is not:
	287	+	2024 IN 200—LS 6692/DI 101 7
	288	+	1 (A) a state educational institution (as defined in
	289	+	2 IC 21-7-13-32); or
	290	+	3 (B) a school corporation (as defined in IC 36-1-2-17);
	291	+	4 (2) September 1, 2025, in the case of a state agency that is a
	292	+	5 state educational institution (as defined in IC 21-7-13-32); or
	293	+	6 (3) September 1, 2026, in the case of a state agency that is a
	294	+	7 school corporation (as defined in IC 36-1-2-17);
	295	+	8 a state agency shall partner with each NLC operating in Indiana to
	296	+	9 become a participating employer in the NLC's nonprofit loan
	297	+	10 center program by offering voluntary payroll deductions for
	298	+	11 eligible employees who enter into an NLC loan offered by an NLC
	299	+	12 lender.
	300	+	13 (b) The statewide coordinator shall provide any necessary
	301	+	14 assistance to enable state agencies to become participating
	302	+	15 employers in each NLC program operating in Indiana, as required
	303	+	16 by subsection (a). In providing assistance under this subsection, the
	304	+	17 statewide coordinator may work with any of the following, as
	305	+	18 appropriate:
	306	+	19 (1) An individual state agency, including:
	307	+	20 (A) the board of trustees for an individual state
	308	+	21 educational institution (as defined in IC 21-7-13-32); or
	309	+	22 (B) the governing body of a school corporation (as defined
	310	+	23 in IC 36-1-2-17).
	311	+	24 (2) The state personnel department.
	312	+	25 (3) The legislative council.
	313	+	26 (4) The office of judicial administration.
	314	+	27 (5) Individual NLC lenders making loans through the NLC
	315	+	28 program.
	316	+	29 (c) After becoming a participating employer as required under
	317	+	30 subsection (a), a state agency shall offer as an employee benefit the
	318	+	31 opportunity for the state agency's eligible employees to make
	319	+	32 payments toward the balance of an NLC loan through voluntary
	320	+	33 recurring payroll deductions under IC 22-2-6-2(b)(10). A state
	321	+	34 agency shall:
	322	+	35 (1) allow an eligible employee to:
	323	+	36 (A) voluntarily request and establish payroll deductions
	324	+	37 under this subsection at any time; and
	325	+	38 (B) revoke the employee's authorization for payroll
	326	+	39 deductions under this subsection at any time;
	327	+	40 including any time that falls outside a designated open
	328	+	41 enrollment period for employee benefits, in the manner set
	329	+	42 forth in subsection (d); and
	330	+	2024 IN 200—LS 6692/DI 101 8
	331	+	1 (2) agree, in a signed writing, to an employee's request for
	332	+	2 payroll deductions under this subsection, as required by
	333	+	3 IC 22-2-6-2(a)(1)(D).
	334	+	4 The statewide coordinator shall provide any necessary assistance
	335	+	5 to enable state agencies to offer and administer payroll deductions
	336	+	6 under this subsection, including by communicating or promoting
	337	+	7 the availability of the payroll deductions as an employee benefit for
	338	+	8 eligible employees. In providing this assistance, the statewide
	339	+	9 coordinator may work with any of the entities set forth in
	340	+	10 subsection (b)(1) through (b)(5).
	341	+	11 (d) Upon receiving approval for an NLC loan, an eligible
	342	+	12 employee may make a written request, in accordance with
	343	+	13 IC 22-2-6-2(a), to the state agency employing the eligible employee,
	344	+	14 that a specified portion of any compensation due from the state
	345	+	15 agency to the eligible employee be credited to the eligible
	346	+	16 employee's account with the applicable NLC lender to be applied
	347	+	17 as payment toward the NLC loan balance. Upon receipt of an
	348	+	18 eligible employee's request to a state agency under this subsection,
	349	+	19 the state comptroller, or another appropriate official or payroll
	350	+	20 administrator, shall:
	351	+	21 (1) draw a warrant in favor of the NLC lender set forth in the
	352	+	22 eligible employee's request;
	353	+	23 (2) in the event more than one (1) eligible employee of the
	354	+	24 state agency designates the same NLC lender, draw a single
	355	+	25 warrant in favor of the NLC lender for the total amount due
	356	+	26 on behalf of the eligible employees and transmit the warrant
	357	+	27 to the NLC lender identifying each eligible employee and the
	358	+	28 amount to be credited to each eligible employee's account; or
	359	+	29 (3) make a direct deposit to the NLC lender by electronic
	360	+	30 funds transfer;
	361	+	31 in the manner set forth in IC 4-15-5.9-2(a). An eligible employee's
	362	+	32 written or electronic request under this subsection shall authorize
	363	+	33 in advance the direct credit by warrant or electronic funds transfer
	364	+	34 of the specified portion of the eligible employee's earnings each
	365	+	35 time a payroll warrant or electronic funds transfer is issued on the
	366	+	36 eligible employee's behalf. The eligible employee's written or
	367	+	37 electronic authorization must designate an NLC lender and an
	368	+	38 account number to which the payment is to be credited. The
	369	+	39 eligible employee's authorization remains in effect until the eligible
	370	+	40 employee revokes it in writing or by electronic means.
	371	+	41 Sec. 11. Any:
	372	+	42 (1) loan made under this chapter; or
	373	+	2024 IN 200—LS 6692/DI 101 9
	374	+	1 (2) person (as defined in IC 24-4.5-1-301.5) that makes a loan
	375	+	2 under this chapter;
	376	+	3 is subject to the requirements of IC 24-4.5-3 and any related rules,
	377	+	4 orders, or guidance documents adopted or issued by the
	378	+	5 department of financial institutions.
	379	+	2024 IN 200—LS 6692/DI 101