IndianaSB 122First Regular Session 124th General Assembly (2025)Senate

Nonprofit loan center loans for state employees.

Sponsored By: Spencer Deery (Republican)

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Summary

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.

insurance and financial institutions

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Bill Overview

No Economic Impacts Identified for this Bill

Sponsors & Cosponsors

Sponsor

  • Spencer Deery

    Republican • Senate

Cosponsors

  • Andrea Hunley

    Democratic • Senate

  • Eric Bassler

    Republican • Senate

  • Greg Walker

    Republican • Senate

  • J.D. Ford

    Democratic • Senate

  • Lonnie Randolph

    Democratic • Senate

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Senator Randolph added as coauthor

    1/16/2025Senate
  2. Senator Hunley added as coauthor

    1/16/2025Senate
  3. Senator Ford J.D. added as coauthor

    1/13/2025Senate
  4. First reading: referred to Committee on Insurance and Financial Institutions

    1/8/2025Senate
  5. Authored by Senators Deery, Bassler, Walker G

    1/8/2025Senate

Bill Text

  • Introduced Senate Bill (S)

Related Bills

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