SB 122

Bill Subjects

Business Organizations And Associations; Charitable Organizations And Nonprofits Financial Services; Financial Institutions Financial Services; Loans And Mortgages Higher Education; Financial Assistance (Including Student Assistance, Loans, Grants, And Fafsa) Labor And Employment; Collective Bargaining, Benefits, And Wages State Elected Officials; Comptroller State Elected Officials; Treasurer State Government; Employees

Abstract

Provides that not later than: (1) September 1, 2025, in the case of a state agency other than a state educational institution or a school corporation; (2) September 1, 2026, in the case of a state agency that is a state educational institution; or (3) September 1, 2027, 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 period for 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 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.