STATE GOVERNMENT RELATIONS
Holcomb Awards READI Funds to All 17 Regions
Gov. Eric J. Holcomb, Secretary of Commerce Brad Chambers and the Indiana Economic Development Corporation board of directors approved plans to award $500 million in READI funds to support regional development plans across 17 regions representing all 92 counties. The READI program, which stands for “Regional Economic Acceleration and Development Initiative,” was first announced by Gov. Holcomb in his 2021 State of the State address and then enacted in legislation by the Indiana General Assembly. According to the IEDC, READI funds are intended for any use “that will make positive developments in quality of place and quality of life, quality of opportunity, innovation, entrepreneurship, and talent attraction and development.”
Indiana Revenue to Net $3.3B More Than Expected
State Budget Committee members got an unprecedented revenue forecast on Thursday, predicting more than $3.3 billion spilling into state coffers while the state revenue surplus is expected to be $5 billion.
Gov. Eric J. Holcomb said, “Today’s revenue forecast is great news and gives us a lot to consider in the months ahead. We’ve been very careful with how we’ve used fiscal resources to this point. And with constantly changing circumstances, we should evaluate all the information before adjusting or adding to our existing commitments.”
Dozens Testify on House Bill 1001: Administrative Authority; COVID-19 Immunizations
On Thursday dozens of Hoosiers testified in front of the House Employment and Labor Committee against House Bill 1001, which would limit COVID-19 vaccine mandates. A portion of HB 1001 would weaken employer vaccination requirements. During the seven-hour committee hearing, most said they were unhappy that the bill does not ban company vaccine mandates altogether, while business groups said it goes too far in regulating employers.
A committee hearing before the start of legislative session is an atypical process for the legislature. However, no votes or amendments were taken on the bill on Thursday. The committee will reconvene after the holiday at the beginning of the legislative session to continue the discussion.
FEDERAL GOVERNMENT RELATIONS
Action Alert: Urge Lawmakers to Oppose New IRS Reporting Rules
The Biden Administration is proposing a sweeping expansion of tax information reporting aimed at raising revenue to help offset the cost of additional spending programs in the American Families Plan. While the initial draft of the Biden administration’s $3.5 trillion spending plan currently does not include the IRS reporting proposal, the language could be added over the coming weeks as the current package is debated. We must continue our grassroots efforts to ensure that this provision stays out of future drafts of the bill.
Contact your lawmakers today to express your opposition to any new IRS reporting that leads to increased compliance costs, damages your customer relationships and threatens customer privacy. In addition to the current action alert seeking bank employee participation, we have created an action alert with messaging specifically designed for bank customer engagement. Please consider sharing this unique action alert link so they may urge Congress protect their financial privacy!
Biden Concedes BBB Bill Won't Get Passed this Year
President Joe Biden acknowledged Thursday that negotiations over his Build Back Better bill will drag into 2022 despite efforts and pledges by Democrats to get it done before Christmas.
"It takes time to finalize these agreements, prepare the legislative changes, and finish all the parliamentary and procedural steps needed to enable a Senate vote," the president said in a statement. "We will advance this work together over the days and weeks ahead; Leader Schumer and I are determined to see the bill successfully on the floor as early as possible."
Biden's relationship with Sen. Joe Manchin (D-W.Va.) is growing strained as the two remain far apart on the cost and timing of the president's social spending package, making the legislation increasingly likely to stall over the holiday break. "They may have very different views about timing," said Sen. Tim Kaine (D-Va.). "It's less about whether, than about when and how much."
FOMC to Accelerate Asset Purchase Tapering
According to the latest Federal Open Market Committee statement issued on Wednesday, the Federal Reserve will accelerate its planned tapering of Treasury securities and mortgage-backed securities purchases. Fed Chairman Jerome Powell said the Fed will begin tapering asset purchases in January – a few months ahead of schedule – and that "increases in securities holdings would cease by March."
Meanwhile, the committee said it would continue to hold the target range for the federal funds rate at its current level of 0 to 0.25%, though three rate increases are projected for 2022, and FOMC members project interest rates to reach 2.1% by 2024.
Powell emphasized that economic conditions are continuing to improve. However, he cautioned that the economy's path would continue to depend on the course of the coronavirus. The Fed is closely monitoring inflation and would be prepared to use its tools "to make sure inflation does not become entrenched."
FASB Votes to Allow More Time to Switch from Libor
The Financial Accounting Standards Board has voted to extend the help it offers firms manage the switch from Libor to the Secured Overnight Financing Rate until Dec. 31, 2024. The proposal to continue the aid, which consists of clarifications and advice on accountancy shortcuts and more time to complete the process, will be formally presented in the first quarter, followed by a 45-day period for public comment.
OCC Finalizes Rule to Rescind 2020 CRA Rulemaking
On Tuesday the Office of the Comptroller of the Currency issued a highly anticipated final rule, officially rescinding its 2020 Community Reinvestment Act rule and replacing it with rules the agency adopted jointly with the Federal Reserve and Federal Deposit Insurance Corp. in 1995. The final rule was adopted largely as proposed. Banks will be required to comply with the rule by Jan. 1, 2022, except for the rule's public file and public notice provisions, which have a compliance date of April 1, 2022.
The OCC noted that "this action is intended to facilitate the ongoing interagency work to modernize the CRA regulatory framework and promote consistency for all insured depository institutions."
CFPB Updates Rulemaking Agenda
Last Friday the Consumer Financial Protection Bureau announced updates to its rulemaking agenda for fall 2021. The agenda is current as of Nov. 1, 2021. Among the bureau's priorities are the Dodd-Frank Act Section 1071 rulemaking. Comments on the proposed rule are currently being accepted through Jan. 6, 2022, and the CFPB will review those comments once the comment period closes.
The CFPB is reviewing comments received in response to an advanced notice of proposed rulemaking and is considering those comments as it assesses potential next steps, including whether a small business review panel is required. In Oct. 2022, the bureau indicated it expects to begin pre-rule activity on property assesses clean energy, or PACE, financing. The bureau also expects to start pre-rule activity regarding consumer access to financial records in April 2022. It is in the process of collecting information for the rulemaking, including quantitative data on the effect of clean energy financing on consumers' financial outcomes.
The bureau indicated that in June 2022, it expects to submit a notice of proposed rulemaking on amendments to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 regarding automated valuation models. The CFPB indicated that it is working with the other federal banking agencies to develop regulations to implement the amendments made by the Dodd-Frank Act to FIRREA.
Notably, 14 rulemaking activities were listed as "inactive" on the fall agenda, including a rulemaking on overdraft services.
Congress Clears Legislation to Raise Debt Limit
On Wednesday the House and Senate passed a bill to raise the debt ceiling by $2.5 trillion. President Biden is expected to sign it quickly.