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Bill Watch, Feb. 7, 2020: Current Business Legislation of Note - Business Law News

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Business Law News


Posted on: Feb 11, 2020

The IndyBar Legislative Committee is currently monitoring the following business related legislation. IndyBar members can request that the Legislative Committee track specific legislation by contacting committee chair Mindy Westrick at mwestrick@indianaenergy.org.

Click here to view the full Bill Watch reports.

HB1049    BUSINESS ASSOCIATIONS. (HEATON R) Amends the statute governing franchises as follows: (1) Specifies that the exemption from certain requirements of the statute that applies to a franchisor that sells no more than one franchise in any 24 month period applies with respect to the number of franchises sold by the franchisor in Indiana. (Current law does not specify where the franchise sales must have occurred in the 24 month period.) (2) Requires a person with a registered franchise to notify the securities commissioner (commissioner) of any material change in the information set forth in the person's required disclosure statement not later than 30 days after the occurrence of the event constituting the change, and sets forth specific events that constitute a material change. (3) Provides that the registration of a franchise with the commissioner is renewed at the time the registration would have expired unless the franchisor requests an earlier renewal date. (Current law does not allow for a franchisor to request an earlier renewal date.) (4) Provides that if a franchise registration form or registration renewal form is denied or withdrawn, the commissioner shall retain the amount of the fee submitted in connection with the form. (Current law provides that the commissioner shall retain $150 of the submitted fee.) Amends the statute governing continuing care contracts to provide that if a provider posts a letter of credit, negotiable securities, or a bond as an alternative to establishing an escrow account for the deposit of entrance fees, as otherwise required by the statute, the amount posted must be at least equal to the maximum amount of entrance fees reasonably anticipated by the provider to otherwise be subject to the escrow requirements. (Current law provides that the letter of credit, negotiable securities, or bond must be for an amount not to exceed the total amount of all entrance fees received by the provider before the date a resident is permitted to occupy a particular living unit.) Changes the term "interpretative" to "interpretive" in various provisions in the Indiana Uniform Securities Act (Act) with respect to opinions issued under the Act. Amends the statute concerning the licensing of collection agencies as follows: (1) Provides that the surety bond required to be submitted with a collection agency's original or renewal application for a collection agency license must be: (A) an electronic corporate surety bond that is: (i) filed by the applicant collection agency; (ii) satisfactory to the commissioner; and (iii) in an amount calculated to equal the sum of $5,000 for each of the collection agency's Indiana offices; and (B) filed through the Nationwide Multistate Licensing System. (2) Adds to the list of qualifications that apply to: (A) individual applicants for collection agency licenses; and (B) individual officers or members who actively manage collection activities for corporate or other applicants for collection agency licenses. (3) Specifies that the secretary of state shall issue forms and orders and adopt and enforce rules and regulations as advisable or necessary to carry out the statute. (Current law does not specify that the secretary of state shall issue forms and orders.) Makes technical corrections.

HB1090    MAINTENANCE OF CEMETERIES ON PRIVATE PROPERTY. (COOK A) Requires a property owner that has a cemetery located on the owner's property to maintain the cemetery. Makes the failure to maintain the cemetery a Class C infraction. Provides that if a property owner cannot be located: (1) the township shall maintain the cemetery; or (2) if the township does not have the appropriated funds to maintain the cemetery, the county may maintain the cemetery.

HB1317 HEALTH CARE ADVANCE DIRECTIVE. (KIRCHHOFER C) Allows an individual to make a health care advance directive that gives instructions or expresses preferences or desires concerning any aspect of the individual's health care or health information and to designate a health care representative to make health care decisions and receive health information for the individual. Consolidates definitions of "life prolonging procedures". Requires the state department of health to prepare a sample advance directive. Provides that the appointment of a representative or attorney in fact to consent to health care that was legally executed before January 1, 2023, is valid as executed. Adds cross-references. Makes conforming changes. Makes technical changes.
 
SB448 NONPROFIT HOSPITAL LOCAL INVESTMENT REQUIREMENT. (HOLDMAN T) Requires a nonprofit hospital in Indiana to invest 30% of the hospital's unrestricted, board designated investment assets (unrestricted assets) in local investments in the service area of the hospital. Requires a hospital to report the amount of unrestricted assets that are reserved for local investments and the amount of actual investments in local investments as a separate line item on the hospital's annual audited financial statement to the state department of heath. Requires a hospital to submit with its biennial report to the Indiana secretary of state a copy of the hospital's audited financial statements for the preceding two fiscal years (this requirement initially begins after the hospital has completed two full fiscal years following the date on which the local investment requirement is effective on July 1, 2020). Provides that, if a nonprofit hospital fails to submit a copy of its audited financial statements with its biennial report to the secretary of state, or if the audited financial statements submitted indicate that the hospital failed to meet the local investment requirement during one or both of the fiscal years, the following apply: (1) The nonprofit hospital shall be considered as operating as a for-profit entity for purposes of state income taxes. (2) The nonprofit hospital shall be ineligible for a state sales and use tax exemption for purchases made by the hospital. (3) The nonprofit hospital shall be ineligible for certain property tax exemptions that would otherwise apply. Makes conforming changes.

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