THE EMERGENCY ECONOMIC STABILIZATION ACT OF 2008
On Friday, October 3, 2008, President Bush signed into law the Emergency Economic Stabilization Act of 2008 (EESA). The 451-page EESA authorizes up to $700 billion in new spending authority for the US Secretary of the Treasury to purchase, manage and ultimately dispose of troubled assets. The initial three-page proposal sent to Congress by Treasury Secretary Henry Paulson contained few restrictions on how this funding could be spent. The House of Representatives rejected the initial legislation by a vote of 205-228. The Senate subsequently passed expanded legislation on October 1, 2008, by a vote of 74-25, followed by an affirmative vote in the House of 263-171. The EESA now includes numerous oversight mechanisms, addresses issues related to individual homeowners facing mortgage difficulties, and gives Congress the ability to reject half of the proposed $700 billion in funding.
Troubled Asset Relief Program
Congress has authorized up to $700 billion in funding for a newly created Troubled Asset Relief Program (TARP). This program gives the Treasury Department the authority to purchase, manage and sell assets on terms acceptable to the Treasury Secretary. The authority to purchase troubled assets expires on December 31, 2009, unless extended by the Secretary for an additional year. There is no sunset on Treasury’s authority to continue to own, manage or sell troubled assets. Use of the funding will be limited to financial institutions that have significant operations in the United States.1
The program will be supervised by a newly appointed Assistant Treasury Secretary, who will serve as the head of a new Office of Financial Stability, under the existing Office of Domestic Finance at the US Treasury. Mr. Neel Kashkari, a former Goldman Sachs executive, has been named the Interim Assistant Treasury Secretary for Financial Stability. Mr. Kashkari had served as the Assistant Secretary for International Economics and Development, having joined the Treasury Department in July 2006 as Senior Advisor to Secretary Paulson.
The $700 billion TARP funding will be sequenced in three phases:
· The first $250 billion will be available immediately.
· The next $100 billion will be available only after the President submits a declaration of need to Congress. (A vote by Congress is not required to agree or disagree with this declaration.)
· The final $350 billion will be made available only after both houses of Congress have had 15 days to reject by a majority vote the use of this $350 billion.
The Treasury Secretary is empowered to engage outside contractors and to designate financial institutions as financial agents of the United States government. Importantly, there are few requirements to follow existing federal guidelines in making these selections. The Treasury Secretary is required to establish new guidelines to: (i) identify mechanisms for purchasing troubled assets; (ii) address conflicts of interest; (iii) price these assets; and (iv) select the assets and the criteria for identifying assets to be purchased.2 These guidelines must be made available publicly within the earlier of 45 days after the enactment of the legislation or two business days after the first purchase of troubled assets.
Not less than every 60 days, the General Accounting Office must provide reports to Congress on the performance of TARP. Detailed reporting to Congress is required every time $50 billion or more in funding is used by the Secretary of the Treasury. A separate Office of Special Inspector to oversee the TARP is also created. Participants in TARP will be permitted to challenge the decisions of the Treasury Secretary in federal court only if they can prove the decisions were arbitrary and capricious or represented an abuse of discretion.
Troubled Assets Insurance Financing Fund
The Treasury Secretary must also establish an insurance program for assets that originated or were issued prior to March 14, 2008, including mortgage-backed assets. Upon a request from a financial institution, the Secretary may guarantee timely payment for up to 100 percent of principal and interest, based on terms and conditions set by the Secretary. Although the Treasury Secretary may vary premiums depending on risk, the criteria for determining the premium amount must be made publicly available.
Private Homeowners
To preserve homeowners, the Hope for Homeowners Program is being expanded. The Secretary may use loan guarantees and credit enhancements so loans can be modified to prevent foreclosures. Also, the Secretary can consent to term extensions, rate-reductions and principal write-downs. Federal agencies that own mortgage loans are directed to seek modifications prior to foreclosures. Tenants of rental property are also given greater protections from eviction if there is a foreclosure on the property. These provisions may make it difficult for a property purchaser to obtain title to an unoccupied structure. Under the legislation, homeowners whose debt is discharged before January 1, 2013, will not have this discharge considered as taxable income by the IRS.
Equity Sharing and Direct Investment
The law requires any financial transaction undertaken by Treasury to include some measure of equity sharing to minimize the risk to the government. Essentially, this will allow the federal government to own equity in banks under certain circumstances. For example, when Treasury purchases a troubled asset from a financial institution, it may also receive preferred or non-voting stock in the institution if it is publicly traded or some other senior debt instrument. Treasury may also consider a voluntary program of making direct investments into banks – including healthy ones-in exchange for equity interests.
Executive Compensation
One of the most politically charged provisions in the legislation is the financial compensation provided to top executives of public companies. Under the law, companies that participate in the TARP program may not deduct the amount of salaries and benefits of top executives that exceed $500,000 per year. Golden parachutes for these executives are also subject to increased taxes.3 Although these provisions may not have much of a financial impact on the use of the $700 billion in taxpayer funds, it has resonated politically with Members of Congress.
Mark-to-Market Changes
The Securities and Exchange Commission is expressly granted the authority to suspend mark-to-market requirements if the SEC determines it is appropriate to do so. The SEC is required to undertake a study on the impact of mark-to-market activity within 90 days. The number of news accounts blaming mark-to-market activity for the lack of credit has grown in recent days. Most analysts believe the SEC already has the authority to waive or modify such rules and, on September 29, 2008, the SEC issued a new interpretation of the mark-to-market rule.4
Higher FDIC and NCUA Insurance Limits
In response to extensive lobbying by banks and credit unions, the legislation increases the maximum amount that deposit accounts can be insured by the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Association (NCUA) to $250,000 per account from the prior coverage of $100,000.
Implementing the Law
On October 6, the Treasury Secretary issued three requests for proposals (RFPs) for interested parties to submit bids to become: (i) whole loan asset managers (ii) securities asset managers; (iii) and providers of custodian services. Confidential submissions for each RFP were due by 5:00 pm EST on October 8. These submissions contained information about fees and the backgrounds of key managers. It is expected many applicants will have potential conflicts that will need to be addressed in the final contract.
Among other requirements, whole asset managers must either currently manage a portfolio of at least $25 billion or prove it can handle such a portfolio. Securities asset managers must have at least $100 billion in dollar-denominated fixed-income assets under management and have received an unqualified auditor’s opinion for the last five years. Providers of custodian services must have at least $500 billion in domestic assets under custody.
The Treasury Department will select a number of applicants to continue to a second phase of the RFP in which additional qualification information will be sought from each applicant, possibly under a confidentiality agreement. Applicants who are not selected will not be provided the reasons for not being chosen. In the third and final phase, face-to-face interviews may be required of the finalists. Those ultimately selected will be designated as financial agents of the United States, thereby imposing a fiduciary responsibility on each successful applicant to act in the best interests of the United States.
Financial Stability Oversight Board and Other Oversight
Several new oversight programs will also be established under the legislation. The Financial Stability Oversight Board is being created to oversee the appointment of financial agents, the effect of the plan upon homeowners, and to identify fraud. The Board will consist of the Chairman of the Board of the Federal Reserve, the Treasury Secretary, the Director of the Federal Home Finance Agency, the Chairman of the SEC, and the Secretary of Housing and Urban Development. The Financial Stability Oversight Board is required to meet within two weeks of any asset acquisition by the Treasury Secretary. The Board will automatically be dissolved after the last use of the new insurance program or the sale of the last asset originally purchased by the United States. GAO is also required to undertake a study on the impact of leverage on the current financial problems and recommend changes by June 1, 2009. In addition, a new congressional oversight panel is created to oversee all of the new authorities created by the legislation.
Other Points of Interest
Notably, a bankruptcy “cramdown” provision favored by some Members of Congress is not included. This provision would have permitted bankruptcy court judges to modify the terms of mortgage contracts by reducing the amount of principal.
The revised bill also includes tax extender provisions related to the alternative minimum tax (AMT), individual tax provisions and deductions, business tax provisions, tax administration provisions, additional tax relief and other tax provisions, and disaster relief.
Attached is the powerpoint used during the Indiana Department of Agriculture press conference on 3/19.
Filed under: Legislation
HB 1219 (originally a bill to distribute money for worker training) was amended in the Senate to basically insert the language contained in SB 335 (Hiring Illegal Aliens) and passed the Senate by a vote of 41-6. SB 345 (originally a bill dealing with the collection of unemployment taxes) was amended in the House to insert the language that was originally amended into SB 335 and passed the House by a vote of 66-33. The bill’s author attempted to amended the language in SB 345 conference committee. No agreement was reached by the members of the Indiana General Assembly.
Overall, these measures are simply too severe and will negatively impact hard-working Hoosiers that do nothing wrong. Moreover, it turns business owners into policemen when the federal government is the one responsible.
This concept will return this summer in an interim study committee with possible draft legislation for 2009.
SB0190 Title 15 recodification. (Ford, Landske, Arnold, GiaQuinta)
Digest
Recodifies the law governing agriculture and animals. Changes references in provisions that cross-reference the law being recodified. Makes related changes. Repeals obsolete provisions. (The introduced version of this bill was prepared by the code revision commission.)
Date Action
03/05/2008 Governor Signed
SB0189 Various issues concerning agriculture and animals. (Ford, Landske, Arnold, GiaQuinta)
Digest
Removes the restriction that only counties that contain more than $20,000,000 in property tax value may make an allowance to an interstate fair corporation. Requires that the petition for an allowance for a tax levy to support county 4-H clubs be published in a newspaper in the county. (Current law requires that the petition be printed in a newspaper that is published and printed in the county.) Prohibits tampering or altering with an identification mark on goats and cervids that have reacted positively to a tuberculin test. Removes a conflicting provision that prohibits the state board of animal health from adopting rules to exempt certain testing requirements from animals that present little risk of spreading disease. Requires that certain persons who are not the owner of an animal but has reason to suspect that the animal has a dangerous, contagious, or infectious disease to make a report to the state veterinarian or local health officer within 48 hours. Provides that the stockholders or members of an agricultural cooperative created before February 23, 1925, by majority vote, may elect to be governed by certain agricultural cooperative laws by limiting its stockholders or membership. (Current law provides for a vote limiting only membership.) (The introduced version of this bill was prepared by the code revision commission.)
Date Action
03/14/2008 Received by the Governor
SB0314 Agricultural matters. (Ford, Pflum)
Digest
Changes the name of the department of agriculture to the Indiana state department of agriculture (department). Adds specific economic development efforts to be administered by the department. Requires the department to assist agricultural businesses in obtaining and preparing permits and serving as a liaison between the business and state and local government. Provides for the confidentiality of financial and application information obtained by the department that relates to economic development or promotion of agriculture and certain voluntary certification programs. Establishes duties for the director of the department concerning agricultural promotion, research, and international agricultural trade. Establishes duties for the director of the department concerning diversified farming. Makes changes to the commercial fertilizer law, including changing the definition of “blending” for fertilizers and adding a definition of “ammonium nitrate”. Makes it a Class A misdemeanor to knowingly or intentionally violate the commercial fertilizer law. Changes the membership of the fertilizer advisory board. Amends certain definitions concerning pesticide laws. Removes the specific volume requirement for exempted bulk pesticide containers. Removes certain pesticides from the list of restricted pesticides. Requires pesticide product applicants to comply with the pesticide product laws. Allows the state chemist to deny a pesticide product registration. Amends a pesticide product applicant’s and registrant’s right to a review of a state chemist’s action. Changes the membership of the pesticide review board (board). Allows the members to continue to serve until a successor is appointed and qualified. Provides that the board’s travel reimbursement must meet Purdue University’s travel policies. Allows the state chemist to have access to production records of pesticide products. Provides that the state chemist may refer violations to the prosecuting attorney. (Current law requires referral.) Amends the definition of “property” under pesticide use and application laws to include vehicles. Includes diagnostic inspections and determining infestations of wood destroying pests as qualifications to obtain a pesticide business license. Adds technician registrations to the licenses that are invalid if the business does not maintain financial responsibility. Prohibits: (1) verbal misrepresentations concerning the effect of pesticides; (2) using known ineffective amounts of pesticides; (3) refusing to supply the state chemist information during an investigation or inspection; (4) intentionally altering a license; (5) failing to provide proof of financial responsibility; and (6) impeding duties of the state chemist. Allows the state chemist to specify the time period certain pesticide records must be kept. Removes the 60 day time limit to file a claim from a pesticide accident and the seven day notification of licensees after an accident claim is filed. Authorizes the state board of animal health to provide voluntary grading and certification relating to meat and meat products. Provides that a person who knowingly or intentionally forges a grade or certification commits a Class D felony. Increases the battery penalty to a Class A misdemeanor if committed against the state chemist or the chemist’s agent while performing their duties. Repeals provisions concerning: (1) operation of livestock export inspection facilities; (2) livestock inspection fees; (3) livestock export facilities; (4) the livestock export facility administration fund; (5) the center for value added research; and (6) adoption of federal fruit grades, domestic grading of certain fruits, inspections, and penalties. Makes conforming and technical changes.
Date Action
03/14/2008 H: Conf Report Adopted(96-0) H
‘Heaven has secure borders, too’
(Indianapolis Star © 03/07/2008)
Indexed 2008-03-07 06:21:29 (Article ID 180684842)
Indiana lawmakers who support a crackdown on illegal immigration may be risking their own salvation, according to a local minister. “Heaven has secure borders, too,” warned the Rev. Mark Powell, a Disciples of Christ minister whose social justice group wants to kill Sen. Mike Delph’s bill that would punish businesses that hire illegal immigrants.
Ministers oppose immigration bill
(Evansville Courier Press © 03/07/2008)
Indexed 2008-03-07 06:21:29 (Article ID 180684735)
INDIANAPOLIS – With the clock ticking on the 2008 session, a group of ministers has asked that the Legislature not pass the three-strikes immigration bill. A prominent group of Indiana House members has called for the same thing. But the original author of the illegal-immigration crackdown legislation is not backing off, and said he hopes to craft a compromise that both the House and Senate
SB0190 Title 15 recodification. (Ford, Landske, Arnold, GiaQuinta)
Digest
Recodifies the law governing agriculture and animals. Changes references in provisions that cross-reference the law being recodified. Makes related changes. Repeals obsolete provisions. (The introduced version of this bill was prepared by the code revision commission.)
Date Action
03/05/2008 Governor Signed
SB0189 Various issues concerning agriculture and animals. (Ford, Landske, Arnold, GiaQuinta)
Digest
Removes the restriction that only counties that contain more than $20,000,000 in property tax value may make an allowance to an interstate fair corporation. Requires that the petition for an allowance for a tax levy to support county 4-H clubs be published in a newspaper in the county. (Current law requires that the petition be printed in a newspaper that is published and printed in the county.) Prohibits tampering or altering with an identification mark on goats and cervids that have reacted positively to a tuberculin test. Removes a conflicting provision that prohibits the state board of animal health from adopting rules to exempt certain testing requirements from animals that present little risk of spreading disease. Requires that certain persons who are not the owner of an animal but has reason to suspect that the animal has a dangerous, contagious, or infectious disease to make a report to the state veterinarian or local health officer within 48 hours. Provides that the stockholders or members of an agricultural cooperative created before February 23, 1925, by majority vote, may elect to be governed by certain agricultural cooperative laws by limiting its stockholders or membership. (Current law provides for a vote limiting only membership.) (The introduced version of this bill was prepared by the code revision commission.)
Date Action
03/05/2008 S: Ret 1st House Concur(46-0)
SB0314 Agriculture matters.
Digest
Changes the name of the department of agriculture to the Indiana state department of agriculture (department). Adds specific economic development efforts to be administered by the department. Requires the department to assist agricultural businesses in obtaining and preparing permits and serving as a liaison between the business and state and local government. Provides for the confidentiality of financial and application information obtained by the department that relates to economic development or promotion of agriculture and certain voluntary certification programs. Establishes duties for the director of the department concerning agricultural promotion, research, and international agricultural trade. Establishes duties for the director of the department concerning diversified farming. Makes changes to the commercial fertilizer law, including changing the definition of “blending” for fertilizers and adding a definition of “ammonium nitrate”. Makes it a Class A misdemeanor to knowingly or intentionally violate the commercial fertilizer law. Changes the membership of the fertilizer advisory board. Amends certain definitions concerning pesticide laws. Removes the specific volume requirement for exempted bulk pesticide containers. Removes certain pesticides from the list of restricted pesticides. Requires pesticide product applicants to comply with the pesticide product laws. Allows the state chemist to deny a pesticide product registration. Amends a pesticide product applicant’s and registrant’s right to a review of a state chemist’s action. Changes the membership of the pesticide review board (board). Allows the members to continue to serve until a successor is appointed and qualified. Provides that the board’s travel reimbursement must meet Purdue University’s travel policies. Allows the state chemist to have access to production records of pesticide products. Provides that the state chemist may refer violations to the prosecuting attorney. (Current law requires referral.) Amends the definition of “property” under pesticide use and application laws to include vehicles. Includes diagnostic inspections and determining infestations of wood destroying pests as qualifications to obtain a pesticide business license. Adds technician registrations to the licenses that are invalid if the business does not maintain financial responsibility. Prohibits: (1) verbal misrepresentations concerning the effect of pesticides; (2) using known ineffective amounts of pesticides; (3) refusing to supply the state chemist information during an investigation or inspection; (4) intentionally altering a license; (5) failing to provide proof of financial responsibility; and (6) impeding duties of the state chemist. Provides that assaulting the state chemist or the chemist’s agent while performing their duties is a Class A misdemeanor. Allows the state chemist to specify the time period certain pesticide records must be kept. Removes the 60 day time limit to file a claim from a pesticide accident and seven day notification of licensee’s after a accident claim is filed Repeals provisions concerning: (1) operation of livestock export inspection facilities; (2) livestock inspection fees; (3) livestock export facilities; (4) the livestock export facility administration fund; (5) the center for value added research; and (6) adoption of federal fruit grades, domestic grading of certain fruits, inspections, and penalties. Makes conforming and technical changes.
Date Action
03/06/2008 H: Advisor Added Thomas D. Knollman
SB0190 Title 15 recodification. (Ford, Landske, Arnold, GiaQuinta)
Digest
Recodifies the law governing agriculture and animals. Changes references in provisions that cross-reference the law being recodified. Makes related changes. Repeals obsolete provisions. (The introduced version of this bill was prepared by the code revision commission.)
Date Action
02/25/2008 S: Signed By the President Pro Tem
SB0189 Various issues concerning agriculture and animals. (Ford, Landske, Arnold, GiaQuinta)
Digest
Removes the restriction that only counties that contain more than $20,000,000 in property tax value may make an allowance to an interstate fair corporation. Requires that the petition for an allowance for a tax levy to support county 4-H clubs be published in a newspaper in the county. (Current law requires that the petition be printed in a newspaper that is published and printed in the county.) Prohibits tampering or altering with an identification mark on goats and cervids that have reacted positively to a tuberculin test. Removes a conflicting provision that prohibits the state board of animal health from adopting rules to exempt certain testing requirements from animals that present little risk of spreading disease. Requires that certain persons who are not the owner of an animal but has reason to suspect that the animal has a dangerous, contagious, or infectious disease to make a report to the state veterinarian or local health officer within 48 hours. Provides that the stockholders or members of an agricultural cooperative created before February 23, 1925, by majority vote, may elect to be governed by certain agricultural cooperative laws by limiting its stockholders or membership. (Current law provides for a vote limiting only membership.) (The introduced version of this bill was prepared by the code revision commission.)
Date Action
02/28/2008 H: Ret 1st House Amendments
SB0314 Agriculture matters. (Ford, Pflum)
Digest
Changes the name of the department of agriculture to the Indiana state department of agriculture (department). Adds specific economic development efforts to be administered by the department. Requires the department to assist agricultural businesses in obtaining and preparing permits and serving as a liaison between the business and state and local government. Provides for the confidentiality of financial and application information obtained by the department that relates to economic development or promotion of agriculture and certain voluntary certification programs. Establishes duties for the director of the department concerning agricultural promotion, research, and international agricultural trade. Establishes duties for the director of the department concerning diversified farming. Makes changes to the commercial fertilizer law, including changing the definition of “blending” for fertilizers and adding a definition of “ammonium nitrate”. Makes it a Class A misdemeanor to knowingly or intentionally violate the commercial fertilizer law. Changes the membership of the fertilizer advisory board. Amends certain definitions concerning pesticide laws. Removes the specific volume requirement for exempted bulk pesticide containers. Removes certain pesticides from the list of restricted pesticides. Requires pesticide product applicants to comply with the pesticide product laws. Allows the state chemist to deny a pesticide product registration. Amends a pesticide product applicant’s and registrant’s right to a review of a state chemist’s action. Changes the membership of the pesticide review board (board). Allows the members to continue to serve until a successor is appointed and qualified. Provides that the board’s travel reimbursement must meet Purdue University’s travel policies. Allows the state chemist to have access to production records of pesticide products. Provides that the state chemist may refer violations to the prosecuting attorney. (Current law requires referral.) Amends the definition of “property” under pesticide use and application laws to include vehicles. Includes diagnostic inspections and determining infestations of wood destroying pests as qualifications to obtain a pesticide business license. Adds technician registrations to the licenses that are invalid if the business does not maintain financial responsibility. Prohibits: (1) verbal misrepresentations concerning the effect of pesticides; (2) using known ineffective amounts of pesticides; (3) refusing to supply the state chemist information during an investigation or inspection; (4) intentionally altering a license; (5) failing to provide proof of financial responsibility; and (6) impeding duties of the state chemist. Provides that assaulting the state chemist or the chemist’s agent while performing their duties is a Class A misdemeanor. Allows the state chemist to specify the time period certain pesticide records must be kept. Removes the 60 day time limit to file a claim from a pesticide accident and seven day notification of licensee’s after a accident claim is filed Repeals provisions concerning: (1) operation of livestock export inspection facilities; (2) livestock inspection fees; (3) livestock export facilities; (4) the livestock export facility administration fund; (5) the center for value added research; and (6) adoption of federal fruit grades, domestic grading of certain fruits, inspections, and penalties. Makes conforming and technical changes.
Date Action
02/28/2008 H: Ret 1st House Amendments
SB0335 Illegal alien matters. (Kruse, Delph, Boots, Tincher)
Digest
Requires the superintendent of the state police department (superintendent) to: (1) negotiate terms of a memorandum of understanding (memorandum) concerning a pilot project for the enforcement of federal immigration and customs laws; and (2) designate appropriate law enforcement officers to be trained under the memorandum. Requires: (1) the superintendent and governor, unless otherwise required by the applicable federal agency, to sign the memorandum on behalf of the state; and (2) the state police department to apply for federal funding, as available, for the costs associated with the training. Provides that a law enforcement officer certified as trained may enforce the federal immigration and customs laws. Prohibits an employer from knowingly hiring, after September 30, 2009, an unauthorized alien. Exempts certain utilities, hospitals, nonprofit organizations, and certain emergency medical transporters from this provision. Subject to availability of funds, authorizes the attorney general to: (1) investigate a complaint that an employer knowingly employed an unauthorized alien; (2) verify the work authorization of the alleged unauthorized alien with the federal government; (3) notify United States Immigration and Customs Enforcement, local law enforcement agencies, and the appropriate prosecuting attorney under certain conditions; and (4) maintain certain records of violation orders. Authorizes a prosecuting attorney to file a civil action against an employer for knowingly hiring an unauthorized alien in the county where the alien is employed. Authorizes a court to: (1) hold a hearing on an expedited basis; (2) if an employer knowingly employs an unauthorized alien, order the employer to terminate the employment of unauthorized aliens, order the employer to file a sworn affidavit, and place the employer on probation for three years; and (3) order agencies to suspend all licenses held by the employer for the operation of the business location until the affidavit is filed, if the employer fails to file a sworn affidavit. Provides that a court may: (1) suspend the licenses of an employer for a second violation not later than 10 years after the date of the initial violation; and (2) revoke all licenses of the employer for a third violation not later than 10 years after the initial violation. Provides that a trier of fact may consider only the federal government’s verification or status information in determining whether an individual is an unauthorized alien. Prohibits a prosecuting attorney from filing an action against an employer that verifies the employment authorization of an employed individual through the pilot program. Establishes an affirmative defense if the employer complied in good faith with the federal employment verification requirements. Makes it a Class B misdemeanor to file complaint, knowing the complaint if false or frivolous, with the attorney general or a prosecuting attorney. Provides that the suspension or revocation of a license does not relieve an employer from an obligation to withhold, collect, or pay income tax on wages. Prohibits a governmental body from enacting an ordinance, resolution, rule, or policy that prohibits or limits another governmental body from sending, receiving, maintaining, or exchanging information on the citizenship or immigration status of an individual. Allows a person to bring an action to compel a governmental body to comply with the prohibition. Prohibits a state agency or political subdivision from entering into or renewing a public contract for services with a contractor if the state agency or political subdivision knows that the contractor employs or contracts with unauthorized aliens. Provides that: (1) a state agency or political subdivision may terminate a public contract for services if the contractor providing the services employs or contracts with unauthorized aliens unless the state or political subdivision determines that terminating the contract would be detrimental to the public interest or public property; and (2) if a public contract for services is terminated, a contractor is liable for actual damages. Allows a contractor of a public contract for services to terminate a contract with a subcontractor if the subcontractor employs or contracts with unauthorized aliens. Makes it a: (1) Class A misdemeanor to transport or move; and (2) Class A misdemeanor to conceal, harbor, or shield from detection; an alien, for purposes of commercial advantage or private financial gain, knowing or in reckless disregard of the fact that the alien has come to, entered, or remained in the United States in violation of law. Exempts from these criminal provisions, certain religious, health care, and legal services providers, and spouses from the criminal provisions. Makes these offenses a Class D felony (Class C felony for subsequent offenses): (1) for a subsequent offense; or (2) if the offense involves more than five aliens. Requires the department of workforce development to verify the lawful presence of certain individuals to determine the individual’s eligibility for unemployment benefits through the SAVE program.
Date Action
02/25/2008 H: Co Sponsor Added Scott Reske
SB0189 Various issues concerning agriculture and animals. (Ford, Landske, Arnold, GiaQuinta)
Digest
Removes the restriction that only counties that contain more than $20,000,000 in property tax value may make an allowance to an interstate fair corporation. Requires that the petition for an allowance for a tax levy to support county 4-H clubs be published in a newspaper in the county. (Current law requires that the petition be printed in a newspaper that is published and printed in the county.) Prohibits tampering or altering with an identification mark on goats and cervids that have reacted positively to a tuberculin test. Removes a conflicting provision that prohibits the state board of animal health from adopting rules to exempt certain testing requirements from animals that present little risk of spreading disease. Requires that a person who is not the owner of an animal but has reason to suspect that the animal has a dangerous, contagious, or infectious disease to make a report to the state veterinarian or local health officer within 48 hours. Provides that the stockholders or members of an agricultural cooperative created before February 23, 1925, by majority vote, may elect to be governed by certain agricultural cooperative laws by limiting its stockholders or membership. (Current law provides for a vote limiting only membership.) (The introduced version of this bill was prepared by the code revision commission.)
Date Action
02/21/2008 H: Committee Report do pass, adopted
SB0314 Department of agriculture. (Ford, Pflum)
Digest
Changes the name of the department of agriculture to the Indiana state department of agriculture (department). Adds specific economic development efforts to be administered by the department. Requires the department to assist agricultural businesses in obtaining and preparing permits and serving as a liaison between the business and state and local government. Makes financial and application information obtained by the department that relates to economic development or promotion of agriculture confidential. Establishes duties for the director of the department concerning agricultural promotion, research, and international agricultural trade. Establishes duties for the director of the department concerning diversified farming. Repeals provisions concerning: (1) operation of livestock export inspection facilities; (2) livestock inspection fees; (3) livestock export facilities; (4) the livestock export facility administration fund; (5) the center for value added research; and (6) adoption of federal fruit grades, domestic grading of certain fruits, inspections, and penalties. Makes conforming changes.
Date Action
02/21/2008 H: Committee Report amend do pass, adopted
SB0190 Title 15 recodification. (Ford, Landske, Arnold, GiaQuinta)
Digest
Recodifies the law governing agriculture and animals. Changes references in provisions that cross-reference the law being recodified. Makes related changes. Repeals obsolete provisions. (The introduced version of this bill was prepared by the code revision commission.)
Date Action
02/18/2008 H: Ret 1st House No Amendments
SB0335 Illegal alien matters. (Kruse, Delph, Boots, Tincher)
Digest
Requires the superintendent of the state police department (superintendent) to: (1) negotiate terms of a memorandum of understanding (memorandum) concerning a pilot project for the enforcement of federal immigration and customs laws; and (2) designate appropriate law enforcement officers to be trained under the memorandum. Requires: (1) the superintendent and governor, unless otherwise required by the applicable federal agency, to sign the memorandum on behalf of the state; and (2) the state police department to apply for federal funding, as available, for the costs associated with the training. Provides that a law enforcement officer certified as trained may enforce the federal immigration and customs laws. Prohibits an employer from knowingly hiring, after September 30, 2009, an unauthorized alien. Exempts certain utilities, hospitals, nonprofit organizations, and certain emergency medical transporters from this provision. Subject to availability of funds, authorizes the attorney general to: (1) investigate a complaint that an employer knowingly employed an unauthorized alien; (2) verify the work authorization of the alleged unauthorized alien with the federal government; (3) notify United States Immigration and Customs Enforcement, local law enforcement agencies, and the appropriate prosecuting attorney under certain conditions; and (4) maintain certain records of violation orders. Authorizes a prosecuting attorney to file a civil action against an employer for knowingly hiring an unauthorized alien in the county where the alien is employed. Authorizes a court to: (1) hold a hearing on an expedited basis; (2) if an employer knowingly employs an unauthorized alien, order the employer to terminate the employment of unauthorized aliens, order the employer to file a sworn affidavit, and place the employer on probation for three years; and (3) order agencies to suspend all licenses held by the employer for the operation of the business location until the affidavit is filed, if the employer fails to file a sworn affidavit. Provides that a court may: (1) suspend the licenses of an employer for a second violation not later than 10 years after the date of the initial violation; and (2) revoke all licenses of the employer for a third violation not later than 10 years after the initial violation. Provides that a trier of fact may consider only the federal government’s verification or status information in determining whether an individual is an unauthorized alien. Prohibits a prosecuting attorney from filing an action against an employer that verifies the employment authorization of an employed individual through the pilot program. Establishes an affirmative defense if the employer complied in good faith with the federal employment verification requirements. Makes it a Class B misdemeanor to file complaint, knowing the complaint if false or frivolous, with the attorney general or a prosecuting attorney. Provides that the suspension or revocation of a license does not relieve an employer from an obligation to withhold, collect, or pay income tax on wages. Prohibits a governmental body from enacting an ordinance, resolution, rule, or policy that prohibits or limits another governmental body from sending, receiving, maintaining, or exchanging information on the citizenship or immigration status of an individual. Allows a person to bring an action to compel a governmental body to comply with the prohibition. Prohibits a state agency or political subdivision from entering into or renewing a public contract for services with a contractor if the state agency or political subdivision knows that the contractor employs or contracts with unauthorized aliens. Provides that: (1) a state agency or political subdivision may terminate a public contract for services if the contractor providing the services employs or contracts with unauthorized aliens unless the state or political subdivision determines that terminating the contract would be detrimental to the public interest or public property; and (2) if a public contract for services is terminated, a contractor is liable for actual damages. Allows a contractor of a public contract for services to terminate a contract with a subcontractor if the subcontractor employs or contracts with unauthorized aliens. Makes it a: (1) Class A misdemeanor to transport or move; and (2) Class A misdemeanor to conceal, harbor, or shield from detection; an alien, for purposes of commercial advantage or private financial gain, knowing or in reckless disregard of the fact that the alien has come to, entered, or remained in the United States in violation of law. Exempts from these criminal provisions, certain religious, health care, and legal services providers, and spouses from the criminal provisions. Makes these offenses a Class D felony (Class C felony for subsequent offenses): (1) for a subsequent offense; or (2) if the offense involves more than five aliens. Requires the department of workforce development to verify the lawful presence of certain individuals to determine the individual’s eligibility for unemployment benefits through the SAVE program.
Date Action
02/18/2008 H: Committee Sched 10:00 AM Room House Chamber Public Policy
SB0190 Title 15 recodification. (Ford, Landske, Arnold, GiaQuinta)
Digest
Recodifies the law governing agriculture and animals. Changes references in provisions that cross-reference the law being recodified. Makes related changes. Repeals obsolete provisions. (The introduced version of this bill was prepared by the code revision commission.)
Date Action
02/14/2008 H: 2nd Reading Order Engrossed
SB0189 Various issues concerning agriculture and animals. (Ford, Landske, Arnold, GiaQuinta)
Digest
Removes the restriction that only counties that contain more than $20,000,000 in property tax value may make an allowance to an interstate fair corporation. Requires that the petition for an allowance for a tax levy to support county 4-H clubs be published in a newspaper in the county. (Current law requires that the petition be printed in a newspaper that is published and printed in the county.) Prohibits tampering or altering with an identification mark on goats and cervids that have reacted positively to a tuberculin test. Removes a conflicting provision that prohibits the state board of animal health from adopting rules to exempt certain testing requirements from animals that present little risk of spreading disease. Requires that a person who is not the owner of an animal but has reason to suspect that the animal has a dangerous, contagious, or infectious disease to make a report to the state veterinarian or local health officer within 48 hours. Provides that the stockholders or members of an agricultural cooperative created before February 23, 1925, by majority vote, may elect to be governed by certain agricultural cooperative laws by limiting its stockholders or membership. (Current law provides for a vote limiting only membership.) (The introduced version of this bill was prepared by the code revision commission.)
Date Action
01/30/2008 H: 1st Reading Assigned Agriculture and Rural Development
SB0314 Department of agriculture. (Ford, Pflum)
Digest
Changes the name of the department of agriculture to the Indiana state department of agriculture (department). Adds specific economic development efforts to be administered by the department. Requires the department to assist agricultural businesses in obtaining and preparing permits and serving as a liaison between the business and state and local government. Makes financial and application information obtained by the department that relates to economic development or promotion of agriculture confidential. Establishes duties for the director of the department concerning agricultural promotion, research, and international agricultural trade. Establishes duties for the director of the department concerning diversified farming. Repeals provisions concerning: (1) operation of livestock export inspection facilities; (2) livestock inspection fees; (3) livestock export facilities; (4) the livestock export facility administration fund; (5) the center for value added research; and (6) adoption of federal fruit grades, domestic grading of certain fruits, inspections, and penalties. Makes conforming changes.
Date Action
02/12/2008 H: Co Sponsor Added Terry A. Goodin
SB0335 Illegal alien matters. (Kruse, Delph, Boots, Tincher)
Digest
Requires the superintendent of the state police department (superintendent) to: (1) negotiate terms of a memorandum of understanding (memorandum) concerning a pilot project for the enforcement of federal immigration and customs laws; and (2) designate appropriate law enforcement officers to be trained under the memorandum. Requires: (1) the superintendent and governor, unless otherwise required by the applicable federal agency, to sign the memorandum on behalf of the state; and (2) the state police department to apply for federal funding, as available, for the costs associated with the training. Provides that a law enforcement officer certified as trained may enforce the federal immigration and customs laws. Prohibits an employer from knowingly hiring, after September 30, 2009, an unauthorized alien. Exempts certain utilities, hospitals, nonprofit organizations, and certain emergency medical transporters from this provision. Subject to availability of funds, authorizes the attorney general to: (1) investigate a complaint that an employer knowingly employed an unauthorized alien; (2) verify the work authorization of the alleged unauthorized alien with the federal government; (3) notify United States Immigration and Customs Enforcement, local law enforcement agencies, and the appropriate prosecuting attorney under certain conditions; and (4) maintain certain records of violation orders. Authorizes a prosecuting attorney to file a civil action against an employer for knowingly hiring an unauthorized alien in the county where the alien is employed. Authorizes a court to: (1) hold a hearing on an expedited basis; (2) if an employer knowingly employs an unauthorized alien, order the employer to terminate the employment of unauthorized aliens, order the employer to file a sworn affidavit, and place the employer on probation for three years; and (3) order agencies to suspend all licenses held by the employer for the operation of the business location until the affidavit is filed, if the employer fails to file a sworn affidavit. Provides that a court may: (1) suspend the licenses of an employer for a second violation not later than 10 years after the date of the initial violation; and (2) revoke all licenses of the employer for a third violation not later than 10 years after the initial violation. Provides that a trier of fact may consider only the federal government’s verification or status information in determining whether an individual is an unauthorized alien. Prohibits a prosecuting attorney from filing an action against an employer that verifies the employment authorization of an employed individual through the pilot program. Establishes an affirmative defense if the employer complied in good faith with the federal employment verification requirements. Makes it a Class B misdemeanor to file complaint, knowing the complaint if false or frivolous, with the attorney general or a prosecuting attorney. Provides that the suspension or revocation of a license does not relieve an employer from an obligation to withhold, collect, or pay income tax on wages. Prohibits a governmental body from enacting an ordinance, resolution, rule, or policy that prohibits or limits another governmental body from sending, receiving, maintaining, or exchanging information on the citizenship or immigration status of an individual. Allows a person to bring an action to compel a governmental body to comply with the prohibition. Prohibits a state agency or political subdivision from entering into or renewing a public contract for services with a contractor if the state agency or political subdivision knows that the contractor employs or contracts with unauthorized aliens. Provides that: (1) a state agency or political subdivision may terminate a public contract for services if the contractor providing the services employs or contracts with unauthorized aliens unless the state or political subdivision determines that terminating the contract would be detrimental to the public interest or public property; and (2) if a public contract for services is terminated, a contractor is liable for actual damages. Allows a contractor of a public contract for services to terminate a contract with a subcontractor if the subcontractor employs or contracts with unauthorized aliens. Makes it a: (1) Class A misdemeanor to transport or move; and (2) Class A misdemeanor to conceal, harbor, or shield from detection; an alien, for purposes of commercial advantage or private financial gain, knowing or in reckless disregard of the fact that the alien has come to, entered, or remained in the United States in violation of law. Exempts from these criminal provisions, certain religious, health care, and legal services providers, and spouses from the criminal provisions. Makes these offenses a Class D felony (Class C felony for subsequent offenses): (1) for a subsequent offense; or (2) if the offense involves more than five aliens. Requires the department of workforce development to verify the lawful presence of certain individuals to determine the individual’s eligibility for unemployment benefits through the SAVE program.
Date Action
02/18/2008 H: Committee Sched 10:00 AM Room House Chamber Public Policy
