There’s a new “naughty list” in Indiana.
That list is reserved for local government agencies that refuse to cooperate with state financial audits. Entities that don’t provide the right paperwork and reports will now be listed on the State Board of Accounts website as part of an effort to force them to cooperate, according to Rep. Matt Lehman, R-Berne, who authored the policy.
“I don’t want to say it’s public shaming, but a lot of times this stuff goes on without anybody really knowing,” he said. “So we said it has to be published that they’re out of compliance. We’re putting them on the naughty list.”
State legislators approved the new law last year as part of House Enrolled Act 1040. It’s one of around six new bills that took effect Jan. 1 that range from new boat registration fees to how public utilities value wind turbines.
Although most new laws kick into gear on July 1, HEA 1040 is one of the larger bills that took effect at the beginning of 2024 that sets a range of new requirements and policies for some elected offices.
City and town controllers, clerk-treasurers and township trustees have been added to the list of officials made to attend a state training conference every two years to learn about proper record keeping and use of forms. Newly elected officials are also required to take five hours of training before starting the position.
The new requirements stem from those elected to offices in smaller towns or communities who don’t have adequate knowledge about how to do the job, Lehman explained.
“These positions have changed,” he said. “It’s just not one guy keeping a book of ledgers with a pencil when someone pays a water bill. They are so much more involved now, from taxation to bookkeeping technology. It’s just become a much more sophisticated role.”
Some towns don’t have any qualified people run for those offices. The new bill allows those communities to hire any qualified person to perform the duties of the clerk-treasurer until the vacancy can be filled or until the end of the current clerk-treasurer’s term.
The town’s legislative body can also contract with a certified public accountant or another town’s clerk-treasurer to assist in performing the duties of the office if that position remains vacant. Lehman noted a town in his district faced this issue.
“My guess is the smaller communities over time will move more and more to contract that out to somebody,” he said.
The bill also requires school lunch and extracurricular school program funds to be audited by the state. Previously, that money had no state oversight, making it an easy target for theft, Lehman explained.
“There was a situation where someone was actually arrested and charged because they were taking money out of these funds,” he said. “Now, we’ve brought those into the school funds that get audited like the rest.”
Here’s a breakdown of the other bills that took effect on Jan. 1.
MONEY TRANSMITTERS
Senate Enrolled Act 458 codifies the Money Transmission Modernization Act, a single set of nationwide standards and requirements approved and endorsed by the Conference of State Bank Supervisors.
A money transmitter is a business entity that provides money transfer services or payment instruments.
The legislation aims to establish a common baseline for money transmission regulation across the states who adopt the model law, according to Indiana Department of Financial Institutions. Indiana was one of 14 states who approved the legislation in 2023. Seventeen more are likely to approve the law this year.
Indiana previously only regulated money transmission for personal, family or household purposes. The new model law incorporates business purpose money transmission. However, Indiana did not include payroll processing or virtual currency portions of the model law into SEA 458.
COURT ORDERED EXPENSES
House Enrolled Act 1009 amends the Indiana code concerning family law and juvenile law related to fathers ordered by a court to pay a least 50% of expenses of the mother’s pregnancy and childbirth.
The law adds new language to the list of expenses fathers are required to pay to include postpartum expenses. Already on the list are prenatal care, delivery, hospitalization and postnatal care.
WATERCRAFT FEES
House Enrolled Act 1304 creates a new class system and fee schedule to renew watercraft registrations based on the length and value of the craft. The law creates 14 classes based on value of the craft when it was new, with the highest fee in that category topping out at $60.
The act requires $5 of the fees to be deposited in the fish and wildlife fund. The remaining 75% of the fee is deposited in the lake and river enhancement fund. The other 25% is deposited in the conservation officers marine enforcement fund.
TELEHEALTH SERVICES
House Enrolled Act 1352 says that the office of Medicaid policy and planning may not require a provider or medical group that exclusively offers telehealth services to maintain a physical address or site in Indiana to be eligible for enrollment as a Medicaid provider.
WIND TURBINE ASSESSMENTS
House Enrolled Act 1401 sets new requirements for how public utilities that purchase wind turbines from another owner report the value of that property.
It also requires The Indiana Department of Local Government Finance to prepare a report this year and next year on the valuation of wind power devices and the department’s progress in implementing the provisions in the bill.
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