Indiana 2025 Regular Session

Indiana House Bill HB1081 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	EH1081.2
	2	+	Reprinted
	3	+	April 1, 2025
	4	+	ENGROSSED
	5	+	HOUSE BILL No. 1081
	6	+	_____
	7	+	DIGEST OF HB 1081 (Updated March 31, 2025 2:00 pm - DI 154)
	8	+	Citations Affected: IC 16-37; IC 23-17.
	9	+	Synopsis: Distributions to charitable beneficiaries. Provides that if a
	10	+	charitable organization is designated as the beneficiary of an individual
	11	+	retirement account, retirement account, brokerage transfer on death
	12	+	account, annuity, or life insurance policy, a financial institution or
	13	+	insurance company in control of the funds must transfer the funds
	14	+	directly to the charitable organization without requiring certain
	15	+	conditions to be satisfied, if the charitable organization submits a
	16	+	certain affidavit.
	17	+	Effective: July 1, 2025.
	18	+	Manning, Teshka, Pierce K,
	19	+	Andrade
	20	+	(SENATE SPONSORS — BALDWIN, RANDOLPH LONNIE M)
	21	+	January 8, 2025, read first time and referred to Committee on Financial Institutions.
	22	+	January 21, 2025, amended, reported — Do Pass.
	23	+	January 27, 2025, read second time, ordered engrossed.
	24	+	January 28, 2025, engrossed. Read third time, passed. Yeas 91, nays 0.
	25	+	SENATE ACTION
	26	+	February 18, 2025, read first time and referred to Committee on Insurance and Financial
	27	+	Institutions.
	28	+	March 13, 2025, amended, reported favorably — Do Pass.
	29	+	March 17, 2025, read second time, ordered engrossed. Engrossed.
	30	+	March 18, 2025, returned to second reading.
	31	+	March 31, 2025, re-read second time, amended, ordered engrossed.
	32	+	EH 1081—LS 6476/DI 154 Reprinted
	33	+	April 1, 2025
1	34		First Regular Session of the 124th General Assembly (2025)
2	35		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	36		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	37		additions will appear in this style type, and deletions will appear in this style type.
5	38		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	39		provision adopted), the text of the new provision will appear in this style type. Also, the
7	40		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	41		a new provision to the Indiana Code or the Indiana Constitution.
9	42		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	43		between statutes enacted by the 2024 Regular Session of the General Assembly.
11		-	HOUSE ENROLLED ACT No. 1081
12		-	AN ACT to amend the Indiana Code concerning business and other
13		-	associations.
	44	+	ENGROSSED
	45	+	HOUSE BILL No. 1081
	46	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	47	+	business and other associations.
14	48		Be it enacted by the General Assembly of the State of Indiana:
15		-	SECTION 1. IC 16-37-1-10, AS AMENDED BY HEA 1148-2025,
16		-	SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	49	+	1 SECTION 1. IC 16-37-1-10, AS AMENDED BY P.L.138-2019,
	50	+	2 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	51	+	3 JULY 1, 2025]: Sec. 10. (a) Information contained in a birth record is
	52	+	4 confidential and may be disclosed only in accordance with this article.
	53	+	5 (b) Except as provided in subsections (c) and (d), the records and
	54	+	6 files of the division of the state department concerning vital statistics
	55	+	7 are subject to this article and rules of the state department. Data
	56	+	8 contained in the records and files may be disclosed only as follows:
	57	+	9 (1) The state registrar shall permit inspection of the records or
	58	+	10 issue a certified copy of a certificate or part of a certificate only
	59	+	11 if the state registrar is satisfied of the following:
	60	+	12 (A) That the applicant has a direct interest in the matter
	61	+	13 recorded. An applicant for a certificate of death has a direct
	62	+	14 interest in the certificate of death if the applicant is a
	63	+	15 beneficiary of the deceased's individual retirement
	64	+	16 account, retirement account, brokerage transfer on death
	65	+	17 account, annuity, or life insurance policy.
	66	+	EH 1081—LS 6476/DI 154 2
	67	+	1 (B) That the information is necessary for the determination of
	68	+	2 personal or property rights or for compliance with state or
	69	+	3 federal law.
	70	+	4 The state registrar's decision is subject to review by the state
	71	+	5 department or a court under this section.
	72	+	6 (2) The state department may disclose identifiable vital statistics
	73	+	7 information to a legitimate researcher, if the researcher complies
	74	+	8 with the following requirements:
	75	+	9 (A) The researcher states in writing to the state department the
	76	+	10 purpose, including:
	77	+	11 (i) any intent to publish findings;
	78	+	12 (ii) the nature of the data sought;
	79	+	13 (iii) the personal information that would be required; and
	80	+	14 (iv) the safeguards that will be taken to protect the identity
	81	+	15 of the data subjects.
	82	+	16 (B) The researcher executes an agreement with the state
	83	+	17 department, on a form approved by the oversight committee on
	84	+	18 public records established under IC 5-15-5.1-18, that:
	85	+	19 (i) incorporates safeguards for protection of individual data
	86	+	20 subjects;
	87	+	21 (ii) defines the scope of the research project; and
	88	+	22 (iii) informs the researcher that failure to abide by
	89	+	23 conditions of the approved agreement constitutes a breach
	90	+	24 of contract and could result in civil litigation by any data
	91	+	25 subject.
	92	+	26 (C) The researcher agrees to pay any direct or indirect costs of
	93	+	27 the research.
	94	+	28 The state department shall determine whether the proposed
	95	+	29 safeguards are adequate to prevent the identity of an individual
	96	+	30 data subject from being known before approving the agreement.
	97	+	31 Upon execution of an agreement described in this subdivision, the
	98	+	32 state department shall maintain a copy of the agreement for the
	99	+	33 duration of the agreement's effective date.
	100	+	34 (3) In any extraordinary case that the state registrar determines is
	101	+	35 a direct tangible and legitimate public interest.
	102	+	36 (c) Notwithstanding subsection (b)(1) through (b)(3), a certificate
	103	+	37 of death received by a local health department (as defined in
	104	+	38 IC 16-18-2-211) or the state department is a public record that, upon
	105	+	39 request, must be made available for inspection and copying if:
	106	+	40 (1) the copy made of the certificate of death is not a certified
	107	+	41 copy;
	108	+	42 (2) any Social Security number that appears on the certificate of
	109	+	EH 1081—LS 6476/DI 154 3
	110	+	1 death is redacted; and
	111	+	2 (3) any charge or fee that is due under section 9, 11, or 11.5 of
	112	+	3 this chapter is collected.
	113	+	4 (d) The birth record of an adopted child remains subject to the
	114	+	5 confidentiality provisions of IC 31-19 regarding the release of adoption
	115	+	6 information.
	116	+	7 (e) The state registrar may deny a request to inspect or copy a record
	117	+	8 concerning vital statistics that is in the state registrar's possession if the
	118	+	9 state registrar has a reasonable suspicion that releasing the record may
	119	+	10 result in fraud or identity theft.
	120	+	11 SECTION 2. IC 23-17-25.7 IS ADDED TO THE INDIANA CODE
	121	+	12 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
	122	+	13 JULY 1, 2025]:
	123	+	14 Chapter 25.7. Charitable Organization Beneficiary Bequest
	124	+	15 Protections
	125	+	16 Sec. 1. The following definitions apply throughout this chapter:
	126	+	17 (1) "Charitable organization" means any entity that is:
	127	+	18 (A) recognized as tax exempt under Section 501(c)(3) of the
	128	+	19 Internal Revenue Code; and
	129	+	20 (B) organized under IC 23-17-3.
	130	+	21 (2) "Deceased" means a person who has:
	131	+	22 (A) died; and
	132	+	23 (B) designated a charitable organization as the beneficiary
	133	+	24 of an individual retirement account, retirement account,
	134	+	25 brokerage transfer on death account, annuity, or life
	135	+	26 insurance policy.
	136	+	27 (3) "Financial institution" means any:
	137	+	28 (A) bank;
	138	+	29 (B) trust company;
	139	+	30 (C) corporate fiduciary;
	140	+	31 (D) savings association;
	141	+	32 (E) credit union;
	142	+	33 (F) savings bank;
	143	+	34 (G) bank of discount and deposit;
	144	+	35 (H) industrial loan and investment company; or
	145	+	36 (I) investment company;
	146	+	37 organized or reorganized under Indiana law, the law of
	147	+	38 another state (as defined in IC 28-2-17-19), or United States
	148	+	39 law.
	149	+	40 Sec. 2. If a charitable organization is designated as the
	150	+	41 beneficiary of an individual retirement account, retirement
	151	+	42 account, brokerage transfer on death account, annuity, or life
	152	+	EH 1081—LS 6476/DI 154 4
	153	+	1 insurance policy, a financial institution or insurance company in
	154	+	2 control of the funds shall do the following:
	155	+	3 (1) Transfer the funds directly to the charitable organization
	156	+	4 upon receipt of an affidavit submitted by the charitable
	157	+	5 organization that contains the following information:
	158	+	6 (A) A statement by the charitable organization confirming
	159	+	7 that it is tax exempt under Section 501(c)(3) of the Internal
	160	+	8 Revenue Code.
	161	+	9 (B) A copy of a corporate resolution authorizing the
	162	+	10 acceptance of the transferred funds.
	163	+	11 (C) An Internal Revenue Service Form W-9 for
	164	+	12 identification.
	165	+	13 (D) A copy of:
	166	+	14 (i) the deceased's death certificate; or
	167	+	15 (ii) other documentation that is authorized by the
	168	+	16 financial institution or insurance company to prove that
	169	+	17 the deceased has died.
	170	+	18 (2) Shall not require:
	171	+	19 (A) personal information, including the Social Security
	172	+	20 number, home address, and date of birth, of any employee,
	173	+	21 officer, or agent of the charitable organization; or
	174	+	22 (B) the charitable organization to open an account or
	175	+	23 otherwise become a customer of the financial institution or
	176	+	24 insurance company;
	177	+	25 as a condition of transferring the funds.
	178	+	26 Sec. 3. (a) A financial institution or insurance company that
	179	+	27 receives the affidavit described in section 2(1) of this chapter shall:
	180	+	28 (1) comply with the requirements of section 2 of this chapter;
	181	+	29 or
	182	+	30 (2) provide to the charitable organization that submitted the
	183	+	31 affidavit described in section 2(1) of this chapter a reasonable
	184	+	32 justification for not complying with the requirements of
	185	+	33 section 2 of this chapter;
	186	+	34 not later than sixty (60) days after receiving the affidavit.
	187	+	35 (b) It is a reasonable justification for not complying with the
	188	+	36 requirements of section 2 of this chapter if compliance would cause
	189	+	37 a financial institution to violate:
	190	+	38 (1) 12 U.S.C. 1829b, 12 U.S.C. 1951-1960, 31 U.S.C.
	191	+	39 5311-5314, 31 U.S.C. 5316-5336, 31 CFR 1000-1099, or any
	192	+	40 other federal law or regulation;
	193	+	41 (2) the rules of a self-regulatory organization registered under
	194	+	42 the federal Securities Exchange Act of 1934 (15 U.S.C. 78); or
	195	+	EH 1081—LS 6476/DI 154 5
	196	+	1 (3) the laws of this state.
	197	+	2 (c) If compliance with the requirements of section 2 of this
	198	+	3 chapter would cause a violation of a federal law described in
	199	+	4 subsection (b), the financial institution shall include in its
	200	+	5 reasonable justification a request to the charitable organization to
	201	+	6 provide the information required to comply with the federal law
	202	+	7 described in subsection (b).
	203	+	8 (d) If a financial institution or insurance company fails to
	204	+	9 comply or provide a reasonable justification for not complying
	205	+	10 with the requirements of section 2 of this chapter not later than
	206	+	11 sixty (60) days after receiving the affidavit described in section 2(1)
	207	+	12 of this chapter, a court may:
	208	+	13 (1) award the charitable organization damages sustained due
	209	+	14 to the delay in receiving the funds under section 2(2) of this
	210	+	15 chapter;
	211	+	16 (2) award the charitable organization court costs, including
	212	+	17 attorney's fees; and
	213	+	18 (3) impose a civil penalty on the financial institution or
	214	+	19 insurance company in an amount not less than five hundred
	215	+	20 dollars ($500) and not more than ten thousand dollars
	216	+	21 ($10,000) per incident.
	217	+	22 Sec. 4. A charitable organization may bring an action in court
	218	+	23 under section 3(d) of this chapter or file a complaint with the
	219	+	24 applicable primary regulator with jurisdiction over a financial
	220	+	25 institution or an insurance company if the charitable organization
	221	+	26 believes that a financial institution or insurance company is not
	222	+	27 complying with this chapter. If a charitable organization files a
	223	+	28 complaint, the applicable primary regulator shall investigate the
	224	+	29 complaint. The applicable primary regulator may impose a civil
	225	+	30 penalty on the financial institution or insurance company in an
	226	+	31 amount not less than five hundred dollars ($500) and not more
	227	+	32 than ten thousand dollars ($10,000) per incident.
	228	+	EH 1081—LS 6476/DI 154 6
	229	+	COMMITTEE REPORT
	230	+	Mr. Speaker: Your Committee on Financial Institutions, to which
	231	+	was referred House Bill 1081, has had the same under consideration
	232	+	and begs leave to report the same back to the House with the
	233	+	recommendation that said bill be amended as follows:
	234	+	Page 3, line 4, after "provide" insert "to the charitable
	235	+	organization that submitted the affidavit described in section 2(1)
	236	+	of this chapter".
	237	+	Page 3, between lines 6 and 7, begin a new paragraph and insert:
	238	+	"(b) It is a reasonable justification for not complying with the
	239	+	requirements of section 2 of this chapter if compliance would cause
	240	+	a financial institution to violate 12 U.S.C. 1829b, 12 U.S.C.
	241	+	1951-1960, 31 U.S.C. 5311-5314, 31 U.S.C. 5316-5336, or 31 C.F.R.
	242	+	1000-1099.
	243	+	(c) If compliance with the requirements of section 2 of this
	244	+	chapter would cause a violation of a federal law described in
	245	+	subsection (b), the financial institution shall include in its
	246	+	reasonable justification a request to the charitable organization to
	247	+	provide the information required to comply with the federal law
	248	+	described in subsection (b).".
	249	+	Page 3, line 7, delete "(b)" and insert "(d)".
	250	+	and when so amended that said bill do pass.
	251	+	(Reference is to HB 1081 as introduced.)
	252	+	TESHKA
	253	+	Committee Vote: yeas 10, nays 0.
	254	+	_____
	255	+	COMMITTEE REPORT
	256	+	Mr. President: The Senate Committee on Insurance and Financial
	257	+	Institutions, to which was referred House Bill No. 1081, has had the
	258	+	same under consideration and begs leave to report the same back to the
	259	+	Senate with the recommendation that said bill be AMENDED as
	260	+	follows:
	261	+	Page 1, line 12, delete "(1)" and insert "(A)".
	262	+	Page 1, line 13, delete "(2)" and insert "(B)".
	263	+	Page 1, line 16, after "policy" insert ".".
	264	+	Page 2, line 7, delete "or".
	265	+	EH 1081—LS 6476/DI 154 7
	266	+	Page 2, line 8, after "company;" insert "or".
	267	+	Page 2, between lines 8 and 9, begin a new line double block
	268	+	indented and insert:
	269	+	"(I) investment company;".
	270	+	Page 2, between lines 11 and 12, begin a new line block indented
	271	+	and insert:
	272	+	"(4) "Indirect proof of death documents" means any two (2)
	273	+	of the following:
	274	+	(A) A notice of probate for the deceased's estate published
	275	+	in a newspaper.
	276	+	(B) A document demonstrating that the deceased's funeral
	277	+	expenses have been paid.
	278	+	(C) A published obituary for the deceased.".
	279	+	Page 2, between lines 26 and 27, begin a new line double block
	280	+	indented and insert:
	281	+	"(D) A copy of:
	282	+	(i) the deceased's death certificate;
	283	+	(ii) a document demonstrating that a court of competent
	284	+	jurisdiction has issued a finding of death for the
	285	+	deceased; or
	286	+	(iii) indirect proof of death documents.".
	287	+	Page 2, delete lines 27 through 33.
	288	+	Page 2, line 34, delete "Refrain from requiring:" and insert "Shall
	289	+	not require:".
	290	+	Page 3, line 8, delete "thirty (30)" and insert "forty-five (45)".
	291	+	Page 3, line 12, delete "31 C.F.R." and insert "31 CFR".
	292	+	Page 3, line 23, delete "thirty (30)" and insert "forty-five (45)".
	293	+	Page 3, line 24, delete "court:" and insert "court may:".
	294	+	Page 3, line 25, delete "may".
	295	+	Page 3, line 28, delete "may".
	296	+	Page 3, line 30, delete "shall".
	297	+	Page 3, between lines 33 and 34, begin a new paragraph and insert:
	298	+	"Sec. 4. A charitable organization may bring an action in court
	299	+	under section 3(d) of this chapter or file a complaint with the
	300	+	applicable primary regulator with jurisdiction over a financial
	301	+	institution or an insurance company if the charitable organization
	302	+	believes that a financial institution or insurance company is not
	303	+	complying with this chapter. If a charitable organization files a
	304	+	complaint, the applicable primary regulator shall investigate the
	305	+	complaint. The applicable primary regulator may impose a civil
	306	+	penalty on the financial institution or insurance company in an
	307	+	amount not less than five hundred dollars ($500) and not more
	308	+	EH 1081—LS 6476/DI 154 8
	309	+	than ten thousand dollars ($10,000) per incident.".
	310	+	Page 3, delete lines 34 through 42.
	311	+	Delete page 4.
	312	+	and when so amended that said bill do pass.
	313	+	(Reference is to HB 1081 as printed January 21, 2025.)
	314	+	BALDWIN, Chairperson
	315	+	Committee Vote: Yeas 8, Nays 0.
	316	+	_____
	317	+	SENATE MOTION
	318	+	Mr. President: I move that Engrossed House Bill 1081, which is
	319	+	eligible for third reading, be returned to second reading for purposes of
	320	+	amendment.
	321	+	BALDWIN
	322	+	_____
	323	+	SENATE MOTION
	324	+	Mr. President: I move that Engrossed House Bill 1081 be amended
	325	+	to read as follows:
	326	+	Page 3, line 15, delete "forty-five (45)" and insert "sixty (60)".
	327	+	Page 3, line 30, delete "forty-five (45)" and insert "sixty (60)".
	328	+	(Reference is to EHB 1081 as printed March 14, 2025.)
	329	+	BASSLER
	330	+	_____
	331	+	SENATE MOTION
	332	+	Mr. President: I move that Engrossed House Bill 1081 be amended
	333	+	to read as follows:
	334	+	Page 3, delete lines 16 through 20, begin a new paragraph and
	335	+	insert:
	336	+	"(b) It is a reasonable justification for not complying with the
	337	+	EH 1081—LS 6476/DI 154 9
	338	+	requirements of section 2 of this chapter if compliance would cause
	339	+	a financial institution to violate:
	340	+	(1) 12 U.S.C. 1829b, 12 U.S.C. 1951-1960, 31 U.S.C.
	341	+	5311-5314, 31 U.S.C. 5316-5336, 31 CFR 1000-1099, or any
	342	+	other federal law or regulation;
	343	+	(2) the rules of a self-regulatory organization registered under
	344	+	the federal Securities Exchange Act of 1934 (15 U.S.C. 78); or
	345	+	(3) the laws of this state.".
	346	+	(Reference is to EHB 1081 as printed March 14, 2025.)
	347	+	BASSLER
	348	+	_____
	349	+	SENATE MOTION
	350	+	Mr. President: I move that Engrossed House Bill 1081 be amended
	351	+	to read as follows:
	352	+	Page 1, between the enacting clause and line 1, begin a new
	353	+	paragraph and insert:
	354	+	"SECTION 1. IC 16-37-1-10, AS AMENDED BY P.L.138-2019,
	355	+	SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17	356		JULY 1, 2025]: Sec. 10. (a) Information contained in a birth record is
18	357		confidential and may be disclosed only in accordance with this article.
19		-	(b) Except as provided in section 7.5 of this chapter and subsections
20		-	(c) and (d), the records and files of the division of the state department
21		-	concerning vital statistics are subject to this article and rules of the
22		-	state department. Data contained in the records and files may be
23		-	disclosed only as follows:
	358	+	(b) Except as provided in subsections (c) and (d), the records and
	359	+	files of the division of the state department concerning vital statistics
	360	+	are subject to this article and rules of the state department. Data
	361	+	contained in the records and files may be disclosed only as follows:
24	362		(1) The state registrar shall permit inspection of the records or
25	363		issue a certified copy of a certificate or part of a certificate only
26	364		if the state registrar is satisfied of the following:
27	365		(A) That the applicant has a direct interest in the matter
28	366		recorded. An applicant for a certificate of death has a direct
29	367		interest in the certificate of death if the applicant is a
30	368		beneficiary of the deceased's individual retirement
31	369		account, retirement account, brokerage transfer on death
32	370		account, annuity, or life insurance policy.
33	371		(B) That the information is necessary for the determination of
34	372		personal or property rights or for compliance with state or
35	373		federal law.
36		-	HEA 1081 — CC 1 2
37	374		The state registrar's decision is subject to review by the state
38	375		department or a court under this section.
	376	+	EH 1081—LS 6476/DI 154 10
39	377		(2) The state department may disclose identifiable vital statistics
40	378		information to a legitimate researcher, if the researcher complies
41	379		with the following requirements:
42	380		(A) The researcher states in writing to the state department the
43	381		purpose, including:
44	382		(i) any intent to publish findings;
45	383		(ii) the nature of the data sought;
46	384		(iii) the personal information that would be required; and
47	385		(iv) the safeguards that will be taken to protect the identity
48	386		of the data subjects.
49	387		(B) The researcher executes an agreement with the state
50	388		department, on a form approved by the oversight committee on
51	389		public records established under IC 5-15-5.1-18, that:
52	390		(i) incorporates safeguards for protection of individual data
53	391		subjects;
54	392		(ii) defines the scope of the research project; and
55	393		(iii) informs the researcher that failure to abide by
56	394		conditions of the approved agreement constitutes a breach
57	395		of contract and could result in civil litigation by any data
58	396		subject.
59	397		(C) The researcher agrees to pay any direct or indirect costs of
60	398		the research.
61	399		The state department shall determine whether the proposed
62	400		safeguards are adequate to prevent the identity of an individual
63	401		data subject from being known before approving the agreement.
64	402		Upon execution of an agreement described in this subdivision, the
65	403		state department shall maintain a copy of the agreement for the
66	404		duration of the agreement's effective date.
67	405		(3) In any extraordinary case that the state registrar determines is
68	406		a direct tangible and legitimate public interest.
69	407		(c) Notwithstanding subsection (b)(1) through (b)(3), a certificate
70	408		of death received by a local health department (as defined in
71	409		IC 16-18-2-211) or the state department is a public record that, upon
72	410		request, must be made available for inspection and copying if:
73	411		(1) the copy made of the certificate of death is not a certified
74	412		copy;
75	413		(2) any Social Security number that appears on the certificate of
76	414		death is redacted; and
77	415		(3) any charge or fee that is due under section 9, 11, or 11.5 of
78	416		this chapter is collected.
79		-	HEA 1081 — CC 1 3
80	417		(d) The birth record of an adopted child remains subject to the
81	418		confidentiality provisions of IC 31-19 regarding the release of adoption
	419	+	EH 1081—LS 6476/DI 154 11
82	420		information.
83	421		(e) The state registrar may deny a request to inspect or copy a record
84	422		concerning vital statistics that is in the state registrar's possession if the
85	423		state registrar has a reasonable suspicion that releasing the record may
86		-	result in fraud or identity theft.
87		-	SECTION 2. IC 23-17-25.7 IS ADDED TO THE INDIANA CODE
88		-	AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
89		-	JULY 1, 2025]:
90		-	Chapter 25.7. Charitable Organization Beneficiary Bequest
91		-	Protections
92		-	Sec. 1. The following definitions apply throughout this chapter:
93		-	(1) "Charitable organization" means any entity that is:
94		-	(A) recognized as tax exempt under Section 501(c)(3) of the
95		-	Internal Revenue Code; and
96		-	(B) organized under IC 23-17-3.
97		-	(2) "Deceased" means a person who has:
98		-	(A) died; and
99		-	(B) designated a charitable organization as the beneficiary
100		-	of an individual retirement account, retirement account,
101		-	brokerage transfer on death account, annuity, or life
102		-	insurance policy.
103		-	(3) "Financial institution" means any:
104		-	(A) bank;
105		-	(B) trust company;
106		-	(C) corporate fiduciary;
107		-	(D) savings association;
108		-	(E) credit union;
109		-	(F) savings bank;
110		-	(G) bank of discount and deposit;
111		-	(H) industrial loan and investment company; or
112		-	(I) investment company;
113		-	organized or reorganized under Indiana law, the law of
114		-	another state (as defined in IC 28-2-17-19), or United States
115		-	law.
116		-	Sec. 2. If a charitable organization is designated as the
117		-	beneficiary of an individual retirement account, retirement
118		-	account, brokerage transfer on death account, annuity, or life
119		-	insurance policy, a financial institution or insurance company in
120		-	control of the funds shall do the following:
121		-	(1) Transfer the funds directly to the charitable organization
122		-	HEA 1081 — CC 1 4
123		-	upon receipt of an affidavit submitted by the charitable
124		-	organization that contains the following information:
125		-	(A) A statement by the charitable organization confirming
126		-	that it is tax exempt under Section 501(c)(3) of the Internal
127		-	Revenue Code.
128		-	(B) A copy of a corporate resolution authorizing the
129		-	acceptance of the transferred funds.
130		-	(C) An Internal Revenue Service Form W-9 for
131		-	identification.
132		-	(D) A copy of:
	424	+	result in fraud or identity theft.".
	425	+	Page 2, delete lines 13 through 19.
	426	+	Page 2, delete lines 35 through 40, begin a new line double block
	427	+	indented and insert:
	428	+	"(D) A copy of:
133	429		(i) the deceased's death certificate; or
134	430		(ii) other documentation that is authorized by the
135	431		financial institution or insurance company to prove that
136		-	the deceased has died.
137		-	(2) Shall not require:
138		-	(A) personal information, including the Social Security
139		-	number, home address, and date of birth, of any employee,
140		-	officer, or agent of the charitable organization; or
141		-	(B) the charitable organization to open an account or
142		-	otherwise become a customer of the financial institution or
143		-	insurance company;
144		-	as a condition of transferring the funds.
145		-	(3) If the financial institution or insurance company notifies
146		-	the charitable organization of the fact that the charitable
147		-	organization has been designated as the beneficiary of the
148		-	deceased's individual retirement account, retirement account,
149		-	brokerage transfer on death account, annuity, or life
150		-	insurance policy, the financial institution or insurance
151		-	company must provide the name of the deceased to the
152		-	charitable organization.
153		-	Sec. 3. (a) A financial institution or insurance company that
154		-	receives the affidavit described in section 2(1) of this chapter shall:
155		-	(1) comply with the requirements of section 2 of this chapter;
156		-	or
157		-	(2) provide to the charitable organization that submitted the
158		-	affidavit described in section 2(1) of this chapter a reasonable
159		-	justification for not complying with the requirements of
160		-	section 2 of this chapter;
161		-	not later than sixty (60) days after receiving the affidavit.
162		-	(b) It is a reasonable justification for not complying with the
163		-	requirements of section 2 of this chapter if compliance would cause
164		-	a financial institution to violate:
165		-	HEA 1081 — CC 1 5
166		-	(1) 12 U.S.C. 1829b, 12 U.S.C. 1951-1960, 31 U.S.C.
167		-	5311-5314, 31 U.S.C. 5316-5336, 31 CFR 1000-1099, or any
168		-	other federal law or regulation;
169		-	(2) the rules of a self-regulatory organization registered under
170		-	the federal Securities Exchange Act of 1934 (15 U.S.C. 78); or
171		-	(3) the laws of this state.
172		-	(c) If compliance with the requirements of section 2 of this
173		-	chapter would cause a violation of a federal law described in
174		-	subsection (b), the financial institution shall include in its
175		-	reasonable justification a request to the charitable organization to
176		-	provide the information required to comply with the federal law
177		-	described in subsection (b).
178		-	(d) If a financial institution or insurance company fails to
179		-	comply or provide a reasonable justification for not complying
180		-	with the requirements of section 2 of this chapter not later than
181		-	sixty (60) days after receiving the affidavit described in section 2(1)
182		-	of this chapter, a court may:
183		-	(1) award the charitable organization damages sustained due
184		-	to the delay in receiving the funds under section 2 of this
185		-	chapter;
186		-	(2) award the charitable organization court costs, including
187		-	attorney's fees; and
188		-	(3) impose a civil penalty on the financial institution or
189		-	insurance company in an amount not less than five hundred
190		-	dollars ($500) and not more than ten thousand dollars
191		-	($10,000) per incident.
192		-	Sec. 4. A charitable organization may bring an action in court
193		-	under section 3(d) of this chapter or file a complaint with the
194		-	applicable primary regulator with jurisdiction over a financial
195		-	institution or an insurance company if the charitable organization
196		-	believes that a financial institution or insurance company is not
197		-	complying with this chapter. If a charitable organization files a
198		-	complaint, the applicable primary regulator shall investigate the
199		-	complaint. The applicable primary regulator may impose a civil
200		-	penalty on the financial institution or insurance company in an
201		-	amount not less than five hundred dollars ($500) and not more
202		-	than ten thousand dollars ($10,000) per incident.
203		-	HEA 1081 — CC 1 Speaker of the House of Representatives
204		-	President of the Senate
205		-	President Pro Tempore
206		-	Governor of the State of Indiana
207		-	Date: Time:
208		-	HEA 1081 — CC 1
	432	+	the deceased has died.".
	433	+	Renumber all SECTIONS consecutively.
	434	+	(Reference is to EHB 1081 as printed March 14, 2025.)
	435	+	GASKILL
	436	+	EH 1081—LS 6476/DI 154