HB 1038 Indiana House · 2025 Regular Session

ESOP linked deposit program.

Summary

Requires the treasurer of state (treasurer) to establish and administer a program to assist Indiana companies in obtaining financing from a financial institution for the purchase of company shares by an employee stock ownership plan (ESOP). Allows the treasurer and a financial institution to enter into an agreement under which: (1) the treasurer places a certificate of deposit (CD) with the financial institution at not more than 3% below the comparable Treasury Bill rate; (2) the financial institution makes a loan to a company at a reduced percentage rate of interest that corresponds to the CD's reduced rate of interest; and (3) the rate of interest of both the loan and the certificate of deposit move in tandem for the duration of the loan term.

Issues: ✓ Labor & Employment

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 8, 2025 Last action Jan 28, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced House Bill (H) → House Bill (H) · 3 edits

MINOR

The bill was amended to clarify how interest rates work in the Linked Deposit Loan program, adding a requirement that loan and deposit rates move together throughout the loan term. The digest was updated to reflect the committee's approval and referral to the Ways and Means committee. Several formatting and header updates were made to align with the bill's new status as an amended version.

Scope change

The bill's scope remains the same, but the interest rate mechanism is now more explicitly defined to ensure rates move in tandem.

REQUIREMENT

Added a third requirement stating that interest rates for both the loan and certificate of deposit must move in tandem for the duration of the loan term.

TECHNICAL

Updated the digest and header information to reflect the bill's amendment status and referral to the Committee on Ways and Means.

Reorganized the interest rate reduction language to better align with the new tandem rate requirement.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 21, 2025

Lower · Passed

Committee report: amend do pass, adopted

lower

Jan 21, 2025

Committee

Recommitted to the Committee on Ways and Means pursuant to House Rule 126.3

lower

1 primary · 2 co-sponsors