*SB0200.1*
January 19, 2024
SENATE BILL No. 200
_____
DIGEST OF SB 200 (Updated January 17, 2024 12:54 pm - DI 55)
Citations Affected: IC 4-13; IC 5-10; IC 22-2.
Synopsis: Nonprofit loan center loans for state employees. Provides
that not later than: (1) September 1, 2024, in the case of a state agency
other than a state educational institution or a school corporation; (2)
September 1, 2025, in the case of a state agency that is a state
educational institution; or (3) September 1, 2026, in the case of a state
agency that is a school corporation; a state agency shall partner with
each nonprofit loan center (NLC) operating in Indiana to become a
participating employer in the NLC's nonprofit loan center program
(NLC program) by offering voluntary payroll deductions for eligible
full-time employees to make payments toward the balance of a
nonprofit loan center loan (NLC loan) made by a nonprofit loan center
lender (NLC lender). Provides that after becoming a participating
employer in an NLC program, a state agency shall allow an eligible
employee to: (1) voluntarily request and establish payroll deductions
for an NLC loan at any time; and (2) revoke the employee's
authorization for payroll deductions for an NLC loan at any time;
including any time that falls outside a designated open enrollment
(Continued next page)
Effective: July 1, 2024.
Deery, Bassler, Walker G, Qaddoura
January 9, 2024, read first time and referred to Committee on Insurance and Financial
Institutions.
January 18, 2024, amended, reported favorably — Do Pass.
SB 200—LS 6692/DI 101 Digest Continued
period for employee benefits. Defines an "NLC loan" as a loan that
meets certain requirements with respect to the principal amount, loan
term, finance charge, authorized fees, method of repayment, and other
loan terms. Authorizes the state comptroller to authorize the electronic
transfer of funds from the state treasury to a designated NLC lender in
payment of an NLC loan on behalf of an eligible employee who has
voluntarily given the state comptroller written authorization, through
the eligible employee's employing state agency, to make the transfer.
Specifies that: (1) a loan made under the bill's provisions; or (2) a
person that makes a loan under the bill's provisions; is subject to the
requirements of the Uniform Consumer Credit Code chapter governing
consumer loans. Provides that a depository institution may make a loan
under the same terms and conditions that apply with respect to a
nonprofit loan center loan to an employee of: (1) a state agency; or (2)
any other employer; as long as the loan is made in compliance with any
applicable law. Allows a wage assignment to be made for the purpose
of making payment to a depository institution in repayment of a loan
that is made to the employee by the depository institution under the
same terms and conditions that apply with respect to an NLC loan.
Authorizes the electronic transfer of funds from the state treasury on
behalf of an employee of a state agency in payment of a loan made by
a depository institution to the employee under the same terms and
conditions that apply to an NLC loan.
SB 200—LS 6692/DI 101SB 200—LS 6692/DI 101 January 19, 2024
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE BILL No. 200
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-13-2-7, AS AMENDED BY THE TECHNICAL
2 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
3 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
4 Sec. 7. (a) Subject to this chapter and other laws not inconsistent with
5 this chapter, the auditor of state comptroller shall, respecting all
6 agencies of the state, do the following:
7 (1) Maintain the centralized accounting records for the state, keep
8 the general books of accounts on a double entry basis, and
9 maintain accounts as will reflect in detail or in summary, all
10 assets, liabilities, reserves, surpluses, revenues and receipts,
11 appropriations, allotments, expenditures, and encumbrances
12 except as otherwise provided in this chapter. The accounting
13 records and procedures must provide complete fiscal control over
14 all agencies of the state and over all activities carried on by them
15 and be upon forms, records, and systems approved by the state
SB 200—LS 6692/DI 101 2
1 board of accounts.
2 (2) Examine every receipt, account, bill, claim, refund, and
3 demand against the state arising from activities carried on by
4 agencies of the state, approve each legal, correct, and proper
5 claim, designate the account to be charged therefor, and issue the
6 auditor's state comptroller's warrant in payment thereof. The
7 auditor of state comptroller may authorize the disbursement
8 through electronic funds transfer in conformity with IC 4-8.1-2-7.
9 All warrants and electronic funds transfers shall be payable to the
10 vendor or claimant and in no instance shall the auditor state
11 comptroller issue any warrant or make any electronic funds
12 transfer payable to an officer or agency in payment of several
13 claims where the officer is to distribute or pay to the several
14 claimants the amount due, except in the case of special
15 disbursement officers as provided for in this chapter. However,
16 the auditor of state comptroller shall not be required to audit
17 claims for any refunds made pursuant to IC 6-6-1.1 and
18 IC 6-6-2.5.
19 (3) Examine each and every payroll or salary voucher submitted
20 for payment by each state officer or state agency and shall issue
21 the auditor's state comptroller's warrant in payment, payable to
22 the officer or employee or claimant, except as provided in
23 subdivision (5). In no instance shall the auditor state comptroller
24 issue the auditor's state comptroller's warrant payable to any
25 officer or agency in payment of a payroll or schedule to be
26 distributed or paid to employees by the officer or agency.
27 (4) Keep an earnings record for each employee that shows gross
28 compensation, net compensation, items withheld for federal tax,
29 public employees' retirement, teachers' retirement, or other
30 retirement, and any other deductions authorized to be deducted
31 from earnings, and shall, as required by law, make settlement with
32 the proper officers, agents, or agencies for the deductions.
33 (5) Authorize the electronic transfer of funds from the state
34 treasury to a designated deposit account in payment of a payroll
35 or salary voucher on behalf of a state employee who has given the
36 auditor state comptroller written authorization to make the
37 transfer under IC 4-15-5.9-2.
38 (6) Authorize the electronic transfer of funds from the state
39 treasury to a designated nonprofit loan center lender (as
40 defined in IC 5-10-9.5-5) in payment of a nonprofit loan
41 center loan (as defined in IC 5-10-9.5-6) on behalf of an
42 eligible employee (as defined in IC 5-10-9.5-3) who has
SB 200—LS 6692/DI 101 3
1 voluntarily given the state comptroller written authorization,
2 through the eligible employee's state agency, to make the
3 transfer under IC 5-10-9.5-10(d).
4 (7) Authorize the electronic transfer of funds from the state
5 treasury to a depository institution (as defined in
6 IC 24-4.5-1-301.5(12)) in payment of a loan that is made to an
7 employee of a state agency (as defined in IC 5-10-9.5-8) by the
8 depository institution (as defined in IC 24-4.5-1-301.5(12))
9 under the same terms and conditions that apply with respect
10 to a nonprofit loan center loan, as set forth in
11 IC 5-10-9.5-6(a)(1) through IC 5-10-9.5-6(a)(15), as long as the
12 employee has voluntarily given the state comptroller written
13 authorization, through the employee's state agency, to make
14 the transfer.
15 (6) (8) Accept all documents and reports showing evidences of
16 the collection of state revenues by state agencies, evidences of the
17 deposit of the revenues, and evidences of the receipt thereof by
18 the treasurer of state and designate the fund or account to be
19 credited.
20 (7) (9) Have all other powers and duties respecting all agencies of
21 the state as may be imposed upon the auditor state comptroller
22 by law or transferred to the auditor state comptroller by this
23 chapter.
24 (b) The auditor of state comptroller may issue a warrant or make
25 an electronic funds transfer in conformity with IC 4-8.1-2-7 to a person
26 who:
27 (1) has a contract with the state; and
28 (2) is entitled to payment under that contract;
29 without the certification required by IC 5-11-10-1.
30 (c) The auditor state comptroller may not issue a warrant or make
31 an electronic funds transfer under subsection (b) except in accordance
32 with procedures adopted by the state board of accounts.
33 (d) The auditor state comptroller is not personally liable for a
34 warrant issued or an electronic funds transfer made under subsection
35 (b) if:
36 (1) the auditor state comptroller complies with the procedures
37 described in subsection (c); and
38 (2) funds are appropriated and available to pay the warrant or
39 electronic funds transfer.
40 (e) This subsection applies to a payment of less than five thousand
41 dollars ($5,000). Notwithstanding any other law, the auditor of state
42 comptroller may elect to:
SB 200—LS 6692/DI 101 4
1 (1) not preaudit a payment; and
2 (2) process the payment with the state agency authorizing the
3 payment.
4 The state agency is accountable to the state board of accounts under the
5 board's post payment auditing procedures.
6 SECTION 2. IC 5-10-9.5 IS ADDED TO THE INDIANA CODE
7 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2024]:
9 Chapter 9.5. Payroll Payments to Nonprofit Loan Center
10 Lenders
11 Sec. 1. As used in this chapter, "consumer reporting agency that
12 compiles and maintains files on consumers on a nationwide basis"
13 has the meaning set forth in 15 U.S.C. 1681a(p).
14 Sec. 2. As used in this chapter, "depository institution" has the
15 meaning set forth in IC 24-4.5-1-301.5(12).
16 Sec. 3. As used in this chapter, "eligible employee" means an
17 individual who:
18 (1) is employed full time by a state agency; and
19 (2) resides in a community in Indiana that is served by a
20 nonprofit loan center.
21 Sec. 4. As used in this chapter, "nonprofit loan center", or
22 "NLC", means a nonprofit organization that operates a nonprofit
23 loan center program that is offered to residents in one (1) or more
24 communities in Indiana.
25 Sec. 5. As used in this chapter, "nonprofit loan center lender",
26 or "NLC lender", means a lender that is:
27 (1) licensed by the department of financial institutions under
28 IC 24-4.5-3; and
29 (2) regularly engaged in making nonprofit loan center loans
30 through a nonprofit loan center program.
31 Sec. 6. (a) As used in this chapter, "nonprofit loan center loan",
32 or "NLC loan", means a loan that is offered through a nonprofit
33 loan center program and that meets the following requirements:
34 (1) The loan is made primarily for personal, family, or
35 household purposes.
36 (2) The principal (as defined in IC 24-4.5-3-107(3)) of the loan
37 does not exceed one thousand dollars ($1,000).
38 (3) The term of the loan is at least twelve (12) months.
39 (4) The loan finance charge, calculated according to the
40 actuarial method, does not exceed eighteen percent (18%) per
41 year on the unpaid balances of the principal (as defined in
42 IC 24-4.5-3-107(3)).
SB 200—LS 6692/DI 101 5
1 (5) Any prepaid finance charge (however denominated by the
2 NLC lender) that is imposed under IC 24-4.5-3-201(3)(d):
3 (A) does not exceed thirty-five dollars ($35); and
4 (B) notwithstanding IC 24-4.5-3-201(10), may, at the
5 option of the NLC lender, be refunded to the borrower
6 upon the borrower's completion of one (1) or more
7 consumer financial education courses.
8 (6) The loan is not subject to any additional permitted charges
9 under IC 24-4.5-3-202 other than the charge permitted under
10 IC 24-4.5-3-202(1)(f) for each returned payment by a bank or
11 other depository institution of a dishonored check, electronic
12 funds transfer, negotiable order of withdrawal, or share draft
13 issued by the borrower, as applicable.
14 (7) The loan is not subject to any other fees or charges not
15 described in subdivisions (4) through (6) other than the
16 following, at the option of the NLC lender:
17 (A) A delinquency charge permitted under
18 IC 24-4.5-3-203.5 on any installment or minimum payment
19 due that is not paid in full not later than ten (10) days after
20 its scheduled due date.
21 (B) An application fee or administrative fee (however
22 denominated by the NLC lender) that:
23 (i) does not exceed thirty-five dollars ($35);
24 (ii) is not a condition for, or an incident to, the extension
25 of credit; and
26 (iii) is imposed by the NLC lender on all applicants for a
27 loan, regardless of whether a loan is made.
28 (8) The NLC lender does not take a security interest in any
29 real or personal property of the borrower in connection with
30 the loan.
31 (9) The borrower is not subject to a credit check, or any other
32 investigation into the borrower's creditworthiness, in
33 connection with the loan application, other than verification
34 that the borrower:
35 (A) is employed full time by an employer that participates
36 in the nonprofit loan center program;
37 (B) has an open checking account in a depository
38 institution; and
39 (C) meets any applicable monthly gross income
40 requirements that the NLC lender has established with
41 respect to different loan amounts or ranges of loan
42 amounts.
SB 200—LS 6692/DI 101 6
1 (10) The loan application may be completed online through
2 the NLC lender's website.
3 (11) The proceeds of the loan are deposited directly into the
4 borrower's checking account with a depository institution.
5 (12) Repayment of the loan may be made through payroll
6 deductions that:
7 (A) are made by the borrower's employer on the
8 borrower's behalf; and
9 (B) are:
10 (i) voluntarily authorized by the borrower; and
11 (ii) revokable by the borrower at any time;
12 in compliance with IC 24-4.5-3-403.
13 (13) Approval of the loan is not conditioned on the borrower's
14 authorization of payroll deductions for repayment of the loan.
15 (14) The loan is not subject to a prepayment penalty or fee.
16 (15) The borrower's payments on the loan are reported to at
17 least one (1) consumer reporting agency that compiles and
18 maintains files on consumers on a nationwide basis.
19 (b) The term does not include a small loan (as defined in
20 IC 24-4.5-7-104) that is subject to IC 24-4.5-7.
21 Sec. 7. As used in this chapter, "nonprofit loan center
22 program", or "NLC program", means a loan program that is:
23 (1) operated by a nonprofit loan center and offered to
24 residents in one (1) or more communities in Indiana; and
25 (2) made available:
26 (A) by one (1) or more employers that partner with a
27 nonprofit loan center lender that makes loans through the
28 program; and
29 (B) to employees as an employee benefit;
30 at no cost to the employer.
31 Sec. 8. (a) As used in this chapter, "state agency" means any
32 authority, board, branch, commission, committee, department,
33 division, or other instrumentality of the executive (including the
34 administrative), judicial, or legislative branch of state government.
35 The term includes the following:
36 (1) A state elected official's office.
37 (2) A state educational institution (as defined in
38 IC 21-7-13-32).
39 (3) A body corporate and politic of the state created by state
40 statute.
41 (b) The term does not include a political subdivision (as defined
42 in IC 36-1-2-13), except for a school corporation (as defined in
SB 200—LS 6692/DI 101 7
1 IC 36-1-2-17).
2 Sec. 9. As used in this chapter, "statewide coordinator" means
3 a nonprofit organization that is responsible for:
4 (1) recruiting local lenders;
5 (2) engaging employers;
6 (3) raising additional capital for lending through local NLC
7 lenders; and
8 (4) providing other support for local NLC lenders;
9 in connection with NLC programs in Indiana.
10 Sec. 10. (a) Not later than:
11 (1) September 1, 2024, in the case of a state agency that is not:
12 (A) a state educational institution (as defined in
13 IC 21-7-13-32); or
14 (B) a school corporation (as defined in IC 36-1-2-17);
15 (2) September 1, 2025, in the case of a state agency that is a
16 state educational institution (as defined in IC 21-7-13-32); or
17 (3) September 1, 2026, in the case of a state agency that is a
18 school corporation (as defined in IC 36-1-2-17);
19 a state agency shall partner with each NLC operating in Indiana to
20 become a participating employer in the NLC's nonprofit loan
21 center program by offering voluntary payroll deductions for
22 eligible employees who enter into an NLC loan offered by an NLC
23 lender.
24 (b) The statewide coordinator shall provide any necessary
25 assistance to enable state agencies to become participating
26 employers in each NLC program operating in Indiana, as required
27 by subsection (a). In providing assistance under this subsection, the
28 statewide coordinator may work with any of the following, as
29 appropriate:
30 (1) An individual state agency, including:
31 (A) the board of trustees for an individual state
32 educational institution (as defined in IC 21-7-13-32); or
33 (B) the governing body of a school corporation (as defined
34 in IC 36-1-2-17).
35 (2) The state personnel department.
36 (3) The legislative council.
37 (4) The office of judicial administration.
38 (5) Individual NLC lenders making loans through the NLC
39 program.
40 (c) After becoming a participating employer as required under
41 subsection (a), a state agency shall offer as an employee benefit the
42 opportunity for the state agency's eligible employees to make
SB 200—LS 6692/DI 101 8
1 payments toward the balance of an NLC loan through voluntary
2 recurring payroll deductions under IC 22-2-6-2(b)(10). A state
3 agency shall:
4 (1) allow an eligible employee to:
5 (A) voluntarily request and establish payroll deductions
6 under this subsection at any time; and
7 (B) revoke the employee's authorization for payroll
8 deductions under this subsection at any time;
9 including any time that falls outside a designated open
10 enrollment period for employee benefits, in the manner set
11 forth in subsection (d); and
12 (2) agree, in a signed writing, to an employee's request for
13 payroll deductions under this subsection, as required by
14 IC 22-2-6-2(a)(1)(D).
15 The statewide coordinator shall provide any necessary assistance
16 to enable state agencies to offer and administer payroll deductions
17 under this subsection, including by communicating or promoting
18 the availability of the payroll deductions as an employee benefit for
19 eligible employees. In providing this assistance, the statewide
20 coordinator may work with any of the entities set forth in
21 subsection (b)(1) through (b)(5).
22 (d) Upon receiving approval for an NLC loan, an eligible
23 employee may make a written request, in accordance with
24 IC 22-2-6-2(a), to the state agency employing the eligible employee,
25 that a specified portion of any compensation due from the state
26 agency to the eligible employee be credited to the eligible
27 employee's account with the applicable NLC lender to be applied
28 as payment toward the NLC loan balance. Upon receipt of an
29 eligible employee's request to a state agency under this subsection,
30 the state comptroller, or another appropriate official or payroll
31 administrator, shall:
32 (1) draw a warrant in favor of the NLC lender set forth in the
33 eligible employee's request;
34 (2) in the event more than one (1) eligible employee of the
35 state agency designates the same NLC lender, draw a single
36 warrant in favor of the NLC lender for the total amount due
37 on behalf of the eligible employees and transmit the warrant
38 to the NLC lender identifying each eligible employee and the
39 amount to be credited to each eligible employee's account; or
40 (3) make a direct deposit to the NLC lender by electronic
41 funds transfer;
42 in the manner set forth in IC 4-15-5.9-2(a). An eligible employee's
SB 200—LS 6692/DI 101 9
1 written or electronic request under this subsection shall authorize
2 in advance the direct credit by warrant or electronic funds transfer
3 of the specified portion of the eligible employee's earnings each
4 time a payroll warrant or electronic funds transfer is issued on the
5 eligible employee's behalf. The eligible employee's written or
6 electronic authorization must designate an NLC lender and an
7 account number to which the payment is to be credited. The
8 eligible employee's authorization remains in effect until the eligible
9 employee revokes it in writing or by electronic means.
10 Sec. 11. Any:
11 (1) loan made under this chapter; or
12 (2) person (as defined in IC 24-4.5-1-301.5) that makes a loan
13 under this chapter;
14 is subject to the requirements of IC 24-4.5-3 and any related rules,
15 orders, or guidance documents adopted or issued by the
16 department of financial institutions.
17 Sec. 12. This chapter does not prohibit a depository institution
18 (as defined in IC 24-4.5-1-301.5(12)) from making a loan under the
19 same terms and conditions that apply with respect to an NLC loan,
20 as set forth in section 6(a)(1) through 6(a)(15) of this chapter, to an
21 employee of:
22 (1) a state agency; or
23 (2) any other employer;
24 as long as the loan is made in compliance with any applicable law.
25 SECTION 3. IC 22-2-6-2, AS AMENDED BY P.L.147-2019,
26 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2024]: Sec. 2. (a) Any assignment of the wages of an
28 employee is valid only if all of the following conditions are satisfied:
29 (1) The assignment is:
30 (A) in writing;
31 (B) signed by the employee personally;
32 (C) by its terms revocable at any time by the employee upon
33 written notice to the employer; and
34 (D) agreed to in writing by the employer.
35 (2) An executed copy of the assignment is delivered to the
36 employer within ten (10) days after its execution.
37 (3) The assignment is made for a purpose described in subsection
38 (b).
39 (b) A wage assignment under this section may be made for the
40 purpose of paying any of the following:
41 (1) Premium on a policy of insurance obtained for the employee
42 by the employer.
SB 200—LS 6692/DI 101 10
1 (2) Pledge or contribution of the employee to a charitable or
2 nonprofit organization.
3 (3) Purchase price of bonds or securities, issued or guaranteed by
4 the United States.
5 (4) Purchase price of shares of stock, or fractional interests in
6 shares of stock, of the employing company, or of a company
7 owning the majority of the issued and outstanding stock of the
8 employing company, whether purchased from such company, in
9 the open market or otherwise. However, if such shares are to be
10 purchased on installments pursuant to a written purchase
11 agreement, the employee has the right under the purchase
12 agreement at any time before completing purchase of such shares
13 to cancel said agreement and to have repaid promptly the amount
14 of all installment payments which theretofore have been made.
15 (5) Dues to become owing by the employee to a labor
16 organization of which the employee is a member.
17 (6) Purchase price of merchandise, goods, or food offered by the
18 employer and sold to the employee, for the employee's benefit,
19 use, or consumption, at the written request of the employee.
20 (7) Amount of a loan made to the employee by the employer and
21 evidenced by a written instrument executed by the employee
22 subject to the amount limits set forth in section 4(c) of this
23 chapter.
24 (8) Contributions, assessments, or dues of the employee to a
25 hospital service or a surgical or medical expense plan or to an
26 employees' association, trust, or plan existing for the purpose of
27 paying pensions or other benefits to said employee or to others
28 designated by the employee.
29 (9) Payment to any credit union, nonprofit organizations, or
30 associations of employees of such employer organized under any
31 law of this state or of the United States.
32 (10) Payment to any person or organization regulated under the
33 Uniform Consumer Credit Code (IC 24-4.5) for deposit or credit
34 to the employee's account by electronic transfer or as otherwise
35 designated by the employee.
36 (11) Payment to a depository institution (as defined in
37 IC 24-4.5-1-301.5(12)) in repayment of a loan that is made to
38 the employee by the depository institution (as defined in
39 IC 24-4.5-1-301.5(12)) under the same terms and conditions
40 that apply with respect to a nonprofit loan center loan, as set
41 forth in section IC 5-10-9.5-6(a)(1) through
42 IC 5-10-9.5-6(a)(15).
SB 200—LS 6692/DI 101 11
1 (11) (12) Premiums on policies of insurance and annuities
2 purchased by the employee on the employee's life.
3 (12) (13) The purchase price of shares or fractional interest in
4 shares in one (1) or more mutual funds.
5 (13) (14) A judgment owed by the employee if the payment:
6 (A) is made in accordance with an agreement between the
7 employee and the creditor; and
8 (B) is not a garnishment under IC 34-25-3.
9 (14) (15) The purchase, rental, or use of uniforms, shirts, pants,
10 or other job-related job related clothing at an amount not to
11 exceed the direct cost paid by an employer to an external vendor
12 for those items.
13 (15) (16) The purchase of equipment or tools necessary to fulfill
14 the duties of employment at an amount not to exceed the direct
15 cost paid by an employer to an external vendor for those items.
16 (16) (17) Reimbursement for education or employee skills
17 training. However, a wage assignment may not be made if the
18 education or employee skills training benefits were provided, in
19 whole or in part, through an economic development incentive
20 from any federal, state, or local program.
21 (17) (18) An advance for:
22 (A) payroll; or
23 (B) vacation;
24 pay.
25 (18) (19) The employee's drug education and addiction treatment
26 services under IC 12-23-23.
27 (c) The interest rate charged on amounts loaned or advanced to an
28 employee and repaid under subsection (b) may not exceed the bank
29 prime loan interest rate as reported by the Board of Governors of the
30 Federal Reserve System or any successor rate, plus four percent (4%).
31 (d) The total amount of wages subject to assignment under
32 subsection (b)(14) and (b)(15) and (b)(16) may not exceed the lesser
33 of:
34 (1) two thousand five hundred dollars ($2,500) per year; or
35 (2) five percent (5%) of the employee's weekly disposable
36 earnings (as defined in IC 24-4.5-5-105(1)(a)).
37 (e) Except as provided under 29 CFR Parts 1910, 1915, 1917, 1918,
38 and 1926, an employee shall not be charged or subject to a wage
39 assignment under subsection (b)(14) or (b)(15) or (b)(16) for
40 protective equipment including personal protective equipment
41 identified under 29 CFR Parts 1910, 1915, 1917, 1918, and 1926.
SB 200—LS 6692/DI 101 12
COMMITTEE REPORT
Madam President: The Senate Committee on Insurance and
Financial Institutions, to which was referred Senate Bill No. 200, has
had the same under consideration and begs leave to report the same
back to the Senate with the recommendation that said bill be
AMENDED as follows:
Page 3, between lines 3 and 4, begin a new line block indented and
insert:
"(7) Authorize the electronic transfer of funds from the state
treasury to a depository institution (as defined in
IC 24-4.5-1-301.5(12)) in payment of a loan that is made to an
employee of a state agency (as defined in IC 5-10-9.5-8) by the
depository institution (as defined in IC 24-4.5-1-301.5(12))
under the same terms and conditions that apply with respect
to a nonprofit loan center loan, as set forth in
IC 5-10-9.5-6(a)(1) through IC 5-10-9.5-6(a)(15), as long as the
employee has voluntarily given the state comptroller written
authorization, through the employee's state agency, to make
the transfer.".
Page 3, line 4, delete "(7)" and insert "(8)".
Page 3, line 9, delete "(8)" and insert "(9)".
Page 9, after line 5, begin a new paragraph and insert:
"Sec. 12. This chapter does not prohibit a depository institution
(as defined in IC 24-4.5-1-301.5(12)) from making a loan under the
same terms and conditions that apply with respect to an NLC loan,
as set forth in section 6(a)(1) through 6(a)(15) of this chapter, to an
employee of:
(1) a state agency; or
(2) any other employer;
as long as the loan is made in compliance with any applicable law.
SECTION 3. IC 22-2-6-2, AS AMENDED BY P.L.147-2019,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. (a) Any assignment of the wages of an
employee is valid only if all of the following conditions are satisfied:
(1) The assignment is:
(A) in writing;
(B) signed by the employee personally;
(C) by its terms revocable at any time by the employee upon
written notice to the employer; and
(D) agreed to in writing by the employer.
(2) An executed copy of the assignment is delivered to the
employer within ten (10) days after its execution.
SB 200—LS 6692/DI 101 13
(3) The assignment is made for a purpose described in subsection
(b).
(b) A wage assignment under this section may be made for the
purpose of paying any of the following:
(1) Premium on a policy of insurance obtained for the employee
by the employer.
(2) Pledge or contribution of the employee to a charitable or
nonprofit organization.
(3) Purchase price of bonds or securities, issued or guaranteed by
the United States.
(4) Purchase price of shares of stock, or fractional interests in
shares of stock, of the employing company, or of a company
owning the majority of the issued and outstanding stock of the
employing company, whether purchased from such company, in
the open market or otherwise. However, if such shares are to be
purchased on installments pursuant to a written purchase
agreement, the employee has the right under the purchase
agreement at any time before completing purchase of such shares
to cancel said agreement and to have repaid promptly the amount
of all installment payments which theretofore have been made.
(5) Dues to become owing by the employee to a labor
organization of which the employee is a member.
(6) Purchase price of merchandise, goods, or food offered by the
employer and sold to the employee, for the employee's benefit,
use, or consumption, at the written request of the employee.
(7) Amount of a loan made to the employee by the employer and
evidenced by a written instrument executed by the employee
subject to the amount limits set forth in section 4(c) of this
chapter.
(8) Contributions, assessments, or dues of the employee to a
hospital service or a surgical or medical expense plan or to an
employees' association, trust, or plan existing for the purpose of
paying pensions or other benefits to said employee or to others
designated by the employee.
(9) Payment to any credit union, nonprofit organizations, or
associations of employees of such employer organized under any
law of this state or of the United States.
(10) Payment to any person or organization regulated under the
Uniform Consumer Credit Code (IC 24-4.5) for deposit or credit
to the employee's account by electronic transfer or as otherwise
designated by the employee.
(11) Payment to a depository institution (as defined in
SB 200—LS 6692/DI 101 14
IC 24-4.5-1-301.5(12)) in repayment of a loan that is made to
the employee by the depository institution (as defined in
IC 24-4.5-1-301.5(12)) under the same terms and conditions
that apply with respect to a nonprofit loan center loan, as set
forth in section IC 5-10-9.5-6(a)(1) through
IC 5-10-9.5-6(a)(15).
(11) (12) Premiums on policies of insurance and annuities
purchased by the employee on the employee's life.
(12) (13) The purchase price of shares or fractional interest in
shares in one (1) or more mutual funds.
(13) (14) A judgment owed by the employee if the payment:
(A) is made in accordance with an agreement between the
employee and the creditor; and
(B) is not a garnishment under IC 34-25-3.
(14) (15) The purchase, rental, or use of uniforms, shirts, pants,
or other job-related job related clothing at an amount not to
exceed the direct cost paid by an employer to an external vendor
for those items.
(15) (16) The purchase of equipment or tools necessary to fulfill
the duties of employment at an amount not to exceed the direct
cost paid by an employer to an external vendor for those items.
(16) (17) Reimbursement for education or employee skills
training. However, a wage assignment may not be made if the
education or employee skills training benefits were provided, in
whole or in part, through an economic development incentive
from any federal, state, or local program.
(17) (18) An advance for:
(A) payroll; or
(B) vacation;
pay.
(18) (19) The employee's drug education and addiction treatment
services under IC 12-23-23.
(c) The interest rate charged on amounts loaned or advanced to an
employee and repaid under subsection (b) may not exceed the bank
prime loan interest rate as reported by the Board of Governors of the
Federal Reserve System or any successor rate, plus four percent (4%).
(d) The total amount of wages subject to assignment under
subsection (b)(14) and (b)(15) and (b)(16) may not exceed the lesser
of:
(1) two thousand five hundred dollars ($2,500) per year; or
(2) five percent (5%) of the employee's weekly disposable
earnings (as defined in IC 24-4.5-5-105(1)(a)).
SB 200—LS 6692/DI 101 15
(e) Except as provided under 29 CFR Parts 1910, 1915, 1917, 1918,
and 1926, an employee shall not be charged or subject to a wage
assignment under subsection (b)(14) or (b)(15) or (b)(16) for
protective equipment including personal protective equipment
identified under 29 CFR Parts 1910, 1915, 1917, 1918, and 1926.".
and when so amended that said bill do pass.
(Reference is to SB 200 as introduced.)
BALDWIN, Chairperson
Committee Vote: Yeas 8, Nays 0.
SB 200—LS 6692/DI 101