STATE GOVERNMENT RELATIONS
Halftime at the Statehouse
Indiana lawmakers have officially reached the halfway point at the Indiana General Assembly. Of the 870 bills and joint resolutions authored at the start of the legislative session, 266 have crossed over to the other chamber and remain “alive” for consideration in the second half of session. Respectively, the House passed 24% of the bills brought forth, while the Senate passed 38%. The second half of the legislative session is poised to see more bills remain stagnant as both chambers have been publicly at odds on some prominent issues such as tax cuts and mandatory vaccinations.
Indiana Homeowner Assistance Fund Update
The Indiana Housing & Community Development Authority (IHCDA) has indicated it will begin accepting applications for the Indiana Homeowner Assistance Fund (IHAF) soon. IHCDA, in partnership with the Indiana Foreclosure Prevention Network (IFPN), has launched a website where interested homeowners can complete a pre-screening questionnaire to determine whether they meet basic eligibility requirements and find information on the IHAF program and additional COVID-19 resources. Banks can direct interested homeowners to more information at 877gethope.org. At the site, homeowners can take steps to receive future notifications once the IHAF program opens and IHCDA begins accepting applications.
Holcomb Extends COVID-19 Emergency Amid Debate
Gov. Eric Holcomb on Tuesday extended Indiana's COVID-19 public health emergency for another month. However, his intentions to end the declaration remained ensnarled in a legislative debate over whether the state should severely limit businesses imposing workplace vaccination requirements.
Houchin to Resign to Focus on Congressional Race
Republican Sen. Erin Houchin of Salem announced her resignation from the state Senate on Thursday, effective Feb. 4. Her resignation letter did not cite a reason for her decision, but a campaign spokesman confirmed Houchin was stepping down to focus on her bid for the GOP nomination in the May 3 primary to replace Republican Rep. Trey Hollingsworth, who is not seeking re-election this year.
Rep. Davisson Enters 9th Congressional District Race
State Rep. J. Michael Davisson announced Tuesday that he would seek the Republican nomination for the U.S. House seat left vacant by Rep. Trey Hollingsworth. Davisson joins State Sen. Erin Houchin, R-Salem, former congressman Mike Sodrel and Stu Barnes-Israel of Greensburg as Republicans in the 9th District race.
House Bill 1224 - Government Investments and Contracts
Author: Rep. Ethan Manning (R-District 23)
Bill summary: Provides that the state or the 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 not called down on third reading and therefore is dead.
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 passed third reading 48-1. The bill now waits to be heard in the House.
Senate Bill 370 - Community Infrastructure Improvement Districts
Author: Sen. Brian Buchanan (R-District 7)
Bill summary: Creates a procedure to establish a community infrastructure improvement district. Specifies that the procedure added by the bill allowing for the establishment of a district does not authorize the unit to establish a district that overlaps with an economic improvement district. Requires a petition for the establishment of a district to include a rate and methodology report. Specifies the contents of the report. Specifies the basis upon which benefits accruing to parcels of real property within a district may be apportioned among those parcels. Requires a determination that the aggregate assessments within a district do not exceed 30% of the projected assessed value of property within the district before a legislative body may adopt an ordinance to establish a district. Requires a community infrastructure improvement board to assist the county treasurer in order to make certain specified determinations and designations regarding annual assessments within a district. Adds specific provisions that apply to the board's issuance of revenue bonds.
Latest action: The bill passed third reading 49-0. The bill now waits to be heard in the House.
FEDERAL GOVERNMENT RELATIONS
Raskin: ‘Banks Choose Their Borrowers, Not the Fed’
Testifying before the Senate Banking Committee yesterday, Sarah Bloom Raskin, President Biden’s nominee to serve as vice chairwoman for supervision at the Federal Reserve, said that she would not seek to use her authority to reallocate capital away from the energy sector. Responding to concerns about her views on banks’ funding of oil and gas-related businesses, Raskin stated emphatically that “it is inappropriate for the Fed to make credit decisions and allocations,” and that “banks choose their borrowers, not the Fed.” Additionally, supervisory and regulatory actions “must always stay within the bounds of the law,” she said.
Raskin has come under fire from some Republicans on the banking committee in recent days for her previous writings and speeches in which she seemed to support using the regulatory apparatus to redirect investment away from industries that, in her view, are contributing to climate change. In 2020, for example, Raskin wrote that the “transformation [toward a net-zero carbon economy] will come, in part, from urging the leaders of our financial regulatory bodies to do all they can – which turns out to be a lot – to bring about the adoption of practices and policies that will allocate capital and align portfolios toward sustainable investments that do not depend on carbon and fossil fuels.”
In her testimony, however, Raskin tempered her comments. “Whether we’re talking about the risks of cyberattacks or climate-related extreme weather events, the job of the bank regulators is to make sure the banking system has appropriately accounted for those risks and can manage them,” she told lawmakers.
Biden's Fed Nominees Pledge to Fight Inflation
Three of President Joe Biden's nominees to the Federal Reserve Board thought to be dovish on inflation said in prepared testimony to Congress on Thursday that they would prioritize the fight against inflation. "Our most important task is tackling inflation," said Michigan State University economics professor Lisa Cook, one of the three nominees to the Fed.
Yellen: Too Soon to Raise Capital Rules for Climate Risk
Regulators must do the groundwork before considering raising bank capital requirements to account for climate risk, Treasury Secretary Janet Yellen says. "Regulators need to evaluate the impact of climate change on the firms that they supervise and work through that," Yellen says.
OCC Issues Bulletin on Considering State Community Reinvestment Law Complaints
On Feb. 2, the Office of the Comptroller of the Currency issued a bulletin outlining its processes for considering input from state banking commissioners regarding national banks' performance under state community reinvestment laws, including implementation of community reinvestment-related provisions of the Riegle-Neal Act. The bulletin also addresses expectations regarding the handling of consumer complaints that state officials refer to national banks and federal savings associations and state referrals of complaints to the OCC. (The OCC noted that Riegle-Neal does not apply to federal savings associations.)
The bulletin, which rescinds two previous advisory letters, outlines OCC policies and procedures in these areas, provides an email address for state banking commissioners to submit input to the OCC, provides general guidance for banks on handling consumer complaints that state officials refer to banks and provides updated mailing addresses for the OCC's customer assistance group and the OCC's chief counsel's office.
House to Include SAFE Banking Act in China Competitiveness Bill
On Feb. 3, the House voted to include the SAFE Banking Act as an amendment to the House version of the America Competes Act, a bill aimed at boosting American economic competitiveness against China. Championed by Rep. Ed Perlmutter (D-Colorado), the SAFE Banking Act was passed in 2019 and 2021 in the House with broad bipartisan support. The SAFE Banking Act would enable banks to serve legitimate cannabis businesses in states where it is legal.