STATE GOVERNMENT RELATIONS
Indiana Senate Backs Narrow Bill to End Health Emergency
The Indiana Senate has approved a bill taking administrative steps that Gov. Eric Holcomb has said are needed to end the statewide COVID-19 public health emergency. Senators voted 34-11 in favor of the bill Thursday.
Indiana Jobless Rate at Historic Low
According to the Indiana Department of Workforce Development, Indiana's unemployment rate fell from 3.0% in November to 2.7% in December—the lowest rate since 1976.
Bill Would Tighten Limits on Indiana Mail-in Voting
Democrats are objecting to a Republican-backed proposal that would require Indiana voters who request mail-in ballots to swear under possible penalty of perjury that they won't be able to vote in person at any time during the 28 days before Election Day. An Indiana House committee endorsed the bill along party lines on Tuesday. Republican Rep. Tim Wesco of Osceola defended the proposal he's sponsoring as an update to the state's mail-in ballot law to reflect the greater availability of early in-person voting over the past couple of decades.
House Bill 1224 - Government Investments and Contracts
Author: Rep. Ethan Manning (R-District 23)
Bill Summary: Provides that the state or the Indiana Indiana Public Retirement System may not make certain investments in companies that boycott energy companies or companies that do business with energy companies. Provides that a state agency may not enter into a contract with certain companies for the purchase of supplies or services unless the contract contains a written verification from the company that the company does not boycott energy companies and will not boycott energy companies during the term of the contract.
Latest action: The bill was passed out of the House Financial Institutions and Insurance Committee by a vote of 7-6 and was amended on second reading. A third reading is scheduled for Monday.
Senate Bill 351 - Controllable Electronic Records
Author: Sen. Chris Garten (R-District 45)
Bill Summary: Adds a new chapter to the Uniform Commercial Code that governs transactions involving controllable electronic records and that does the following: (1) Defines "controllable electronic records." (2) Establishes the following: (A) The extent to which a purchaser acquires rights and interests in controllable electronic records. (B) The circumstances under which a qualifying purchaser acquires rights in a controllable electronic record free of any adverse claim. (C) The conditions that must be satisfied for a person to be considered to have control over controllable electronic records. Amends certain sections in the UCC chapter concerning secured transactions to reference controllable electronic records and to provide for the perfection of a security interest in controllable electronic records by: (1) control; or (2) the filing of a financing statement. Amends the Indiana statute concerning unclaimed personal property to: (1) conform the definition of "controllable electronic record" in that statute to the new definition set forth in the UCC; and (2) authorize (rather than require, as specified in current law) the attorney general to adopt rules regarding controllable electronic records and digital assets, to the extent such rules are consistent with, and not otherwise covered by: (A) the bill's provisions; or (B) any other Indiana law concerning controllable electronic records or digital assets.
Latest action: The bill was passed out of the Senate Judiciary Committee by a vote of 9-1 and will be eligible for second reading on Monday.
Senate Bill 358 - Consumer Data Protection
Author: Sen. Liz Brown (R-District 15)
Bill Summary: Establishes a new article in the Indiana Code concerning consumer data protection, to take effect Jan. 1, 2024. Sets forth the following within the new article: (1) Definitions of various terms that apply throughout the article. (2) Exemptions from the bill's requirements concerning the responsibilities of controllers of consumers' personal data. (3) The rights of an Indiana consumer to do the following: (A) Confirm whether or not a controller is processing the consumer's personal data. (B) Correct inaccuracies in the consumer's personal data that the consumer previously provided to a controller. (C) Delete the consumer's personal data held by a controller. (D) Obtain a copy or representative summary of the consumer's personal data that the consumer previously provided to the controller. (E) Opt out of the processing of the consumer's personal data for certain purposes. (4) The responsibilities of controllers of consumers' personal data. (5) The roles of controllers and processors with respect to a consumer's personal data. (6) Requirements for data protection assessments by controllers of consumers' personal data. (7) Requirements for processing de-identified data or pseudonymous data. (8) Limitations as to the scope of the new article. (9) The authority of the attorney general to investigate and enforce suspected or actual violations of the new article. (10) The establishment of a new consumer privacy fund: (A) consisting of civil penalties collected by the attorney general in enforcement actions under the new article; and (B) to be used in supporting the work of the attorney general in enforcing the new article. (11) The preemption of local rules, regulation, and laws regarding the processing of personal data.
Latest action: The bill was passed out of the Senate Committee on Commerce and Technology by a vote of 10-0 and will be eligible for second reading on Monday.
Senate Bill 361 - Economic Development
Author: Sen. Ryan Mishler (R-District 9)
Bill Summary: Makes certain amendments to the Hoosier business investment tax credit, the economic development for a growing economy tax credit, the headquarters relocation tax credit, and the redevelopment tax credit. Establishes an innovation development district (district) program. Allows the Indiana Economic Development Corporation to designate an area as a district under certain procedures and enter into an agreement for the terms and conditions of the district. Establishes the innovation development district fund (fund) administered by the IEDC. Provides for the transfer of incremental tax revenue in a district to the fund. Provides that the IEDC may make grants, loans, or investments from the fund for specified purposes. Provides an exemption from wage withholding requirements for an employer within a district that meets certain requirements and procedures. Limits the total amount of credits that the IEDC may award for a calendar year for all taxpayers for all applicable tax credits to $400,000,000. However, provides that, subject to review by the budget committee, the IEDC may award an additional $200,000,000, in addition to the $400,000,000 limit, but that the additional credits shall not be assigned or transferred. Provides that the IEDC may award a tax credit for media production expenses for certain media productions in Indiana. Requires the Indiana destination development corporation to design and implement a new remote worker grant program to provide grants to new remote workers for certain qualifying expenses. Limits the total amount of grants that may be awarded under the new remote worker grant program in a fiscal year. Makes conforming changes.
Latest action: The bill was passed out of the Senate Committee on Appropriations by a vote of 11-1 and will be eligible for second reading on Monday.
FEDERAL GOVERNMENT RELATIONS
FOMC to End Asset Purchases by Early March
According to the latest Federal Open Market Committee statement issued Wednesday, the Federal Reserve will continue to reduce the monthly pace of asset purchases and bring them to an end in early March. Fed Chairman Jerome Powell said inflation remains well above the Fed's longer-run goal of 2%. Supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated inflation levels.
In a press conference after the release of the FOMC statement, Powell said he does not expect supply chain issues to be completely worked out by the end of this year but does expect progress to be made in the second half of the year.
The committee also said it would continue to hold the target range for the federal funds rate at its current level of zero to 0.25%, but noted that they expect "it will soon be appropriate to raise the target range for the federal funds rate." The FOMC reiterated that the economy's path continues to depend on the course of COVID-19. The statement added that economic activity and employment indicators have continued to strengthen, and the sectors most adversely affected by the pandemic have improved in recent months but are now being affected by the recent sharp rise in COVID-19 cases.
The Fed also issued principles for how it plans to unwind its balance sheet and reaffirmed its longstanding statement on its longer-run monetary policy goals, which target an inflation rate of 2%.
Fed Aims to Raise Interest Rates in March
The Federal Reserve has announced it will begin steadily raising interest rates at a March meeting to curb inflation and has authorized a final round of asset purchases, putting the program on track to end by March. "This is going to be a year in which we move steadily away from the very highly accommodative monetary policy that we put in place to deal with the economic effects of the pandemic," Fed Chairman Jerome Powell said.
OSHA Withdraws ETS, Commits to Issuing Permanent Standard
On Tuesday the Occupational Safety and Health Administration withdrew the emergency temporary standard that would have required employers with 100 or more employees to ensure staff are vaccinated or tested weekly for COVID-19, among other requirements. OSHA's withdrawal comes after the Supreme Court issued a stay of enforcement of the ETS earlier this month after business groups had challenged the ETS.
OSHA affirmed its commitment to issuing a permanent standard, which must be issued by May 5, 2022. OSHA did not indicate whether the permanent standard's breadth of coverage would be similar to the ETS's or whether OSHA would target a narrower group of industries with vaccine, testing and masking requirements.
Debate Mounts Over Control of Personal Financial Data
Concerns surrounding consumers' control over their personal financial data will likely come to a head this year as the Consumer Financial Protection Bureau probes the issue. "When you start to think about the user experience of consent, and you think about clicking the 'I agree' [box] every time you get to a website, the constant bids to verify consent in many cases become white noise," said Nick Thomas, Mastercard's chief product officer of global open banking.
OCC Asked to Raise Pressure on Banks' Climate Goals
Activist groups and individuals are calling on the Office of the Comptroller of the Currency to raise pressure on major banks to uphold their net-zero emissions pledges and focus more on climate-related risks.
Rep. McHenry: Congress Needs to Set the Rules on Digital Assets
Rep. Patrick McHenry, R-N.C., says Congress should be making the rules surrounding digital assets rather than regulatory bodies like the Securities and Exchange Commission. The House Financial Services Committee "should do its work to appropriately categorize these assets and determine the rules that will govern their use," McHenry said in a letter to committee chair Maxine Waters, D-Calif.