STATE GOVERNMENT RELATIONS
Indiana Election Recap
While a few states around the country continue counting their remaining votes, we now have a complete picture of Indiana’s election results. The following is a summary on the outcome of statewide, congressional and Statehouse races from Tuesday’s election. Indiana Republicans had a successful evening, winning statewide, defending incumbents in Statehouse races and, in a surprising move, adding to their supermajority in the House.
Indiana Governor
Incumbent Gov. Eric Holcomb (R) cruised to an early victory, winning a second term in office. Gov. Holcomb defeated both Democrat candidate Woody Myers and Libertarian candidate Donald Rainwater by a wide margin, securing 58% of the total vote.
Holcomb (i)(R) 57% - Myers (D) 32% - Rainwater (L) 11%
Indiana Attorney General
The race for Indiana attorney general to replace outgoing Attorney General Curtis Hill (R) was between former U.S. Rep. Todd Rokita (R) and former state Rep. Jonathan Weinzapfel (D). Rokita experienced victory over former state Rep. Weinzapfel.
Rokita (R) 58% - Weinzapfel (D) 42%
Indiana Congressional Races, Including 5th District
Indiana’s nine congressional seats stood for election on Tuesday. All but two congressional races had incumbent members running against challengers. All of the incumbent congressional members won re-election over their opponents, including: Rep. Larry Buschon (R); Rep. Trey Hollingsworth (R); Rep. Greg Pence (R); Rep. Jim Baird (R); Rep. Jackie Walorski (R); Rep. Jim Banks (R); and Rep. André Carson (D). The 1st Congressional District saw newcomer Frank Mrvan (D) claim an easy victory in a district that was open due to the retirement of longtime Rep. Pete Visclosky (D).
• District 1: Mrvan (D) 57% - Leyva (R) 40% - Strauss (L) 3%
• District 2: Walorski (i)(R) 63% - Hackett (D) 37%
• District 3: Banks (i)(R) 68% - Coldiron (D) 32%
• District 4: Baird (i)(R) 67% - Mackey (D) 33%
• District 6: Pence (i)(R) 69% - Lake (D) 28% - Ferkinhoff (L) 4%
• District 7: Carson (i)(D) 62% - Smith (R) 38%
• District 8: Buschon (i)(R) 67% - Marsili (D) 30% - Rodenberger (L) 3%
• District 9: Hollingsworth (i)(R) 61% - Ruff (D) 35% - Millis (L) 4%
Open Congressional 5th District
The congressional district many were paying close attention to, Indiana’s 5th District, went to state Sen. Victoria Spartz (R). The 5th District was open this year due to the retirement of U.S. Rep. Susan Brooks (R), with former state Rep. Christina Hale (D) and state Sen. Spartz vying for the seat.
District 5: Spartz (R) 50% - Hale (D) 46% - Tucker (L) 4%
Indiana House Races
The Indiana Statehouse saw some notable changes. as well. There were numerous races for the Statehouse that the IBA had been watching closely, as many incumbents were in tight races. Heading into the election, the House was held by Republicans 67-33. Republicans held a supermajority over Democrats, but Democrats would only need to net one seat to break up the supermajority. On a night when many thought a blue wave might have ripple effects on down-ballot races, the opposite took place for Indiana House of Representative races. Republicans picked up four more House seats.
House Democrats who lost on election night:
• Rep. Lisa Beck (i)(D-Hebron) lost to Republican challenger Julie Olthoff 48%-52%
• Rep. Melanie Wright (i)(D-Yorktown) lost to Republican challenger Elizabeth Rowray 45%-55%
• Rep. Terry Goodin (i)(D-Austin) lost to Republican challenger Zach Payne 44%-56%
• Rep. Ross Deal (i)(D-Mishawaka) lost to Republican challenger Jake Teshka 43%-57%
• Rep. Chris Chyung (i)(D-Dyer) lost to former state Rep. Hal Slager (R), 48% to 52%
House Republicans did lose one seat where Rep. Cindy Kirchhofer (R) lost to Mitch Gore (D) 49%-51%. All told, Republicans netted four additional seats in the House. This brings the House seat total to 71 Rs, 29 Ds.
Indiana Senate Races
In the Indiana Senate, much like the House, there were numerous friends of the industry facing difficult re-elections. The Senate also holds a supermajority, which wasn’t in question this election. Republicans held a 40-10 supermajority over Democrats going into the election. Three key races in Marion County with Republican incumbents would determine the final seat count for Senate Republicans. Of those results, only on Republican lost.
• Sen. John Ruckelshaus (i)(R) lost to Fady Qaddoura (D) 47%-53%
• Sen. Mike Young (i)(R) beat Pete Cowden (D) 52%-48%
• Sen. Jack Sandlin (i)(R) beat Ashley Eason (D) 54%-46%
These results bring the seat total to 39 Rs, 11 Ds.
FEDERAL GOVERNMENT RELATIONS
Fed Announces Actions to Make MSLP Loans Available to Smaller Businesses
To encourage greater participation in the Main Street Lending Program, the Federal Reserve has announced several actions it has taken to make MSLP loans available to more businesses. The Fed lowered the minimum loan size for three MSLP facilities available to for-profit and nonprofit borrowers from $250,000 to $100,000, and adjusted fees to “encourage the provision of these smaller loans.”
Additionally, the agency issued a set of frequently asked questions that clarify that Paycheck Protection Program loans of up to $2 million may be excluded for purposes of determining the maximum loan size under the MSLP. The amount of the loan for which the borrower has applied for forgiveness may be excluded from the “existing outstanding and undrawn available debt” calculation, unless the PPP lender or Small Business Administration determines it is ineligible for forgiveness, according to the Fed.
For borrowers who have not yet applied for PPP forgiveness, the Fed will permit the exclusion of “the amount of its PPP loan that its principal executive officer has a reasonable, good-faith basis to believe will be forgiven in accordance with applicable PPP requirements.”
Senator Ups Pressure to Address EIDL-PPP Conflict
Sen. Steve Daines (R-Mont.) called on leaders of the Senate Small Business & Entrepreneurship Committee to resolve the conflict between Economic Injury Disaster Loan advances and the Paycheck Protection Program that has recently created a great deal of frustration for borrowers.
In a letter to committee Chairman Marco Rubio (R-Fla.) and Ranking Member Ben Cardin (D-Md.), Daines wrote that the issue is particularly burdensome for community banks and the small businesses they serve.
CFPB Finalizes Partial Fair Debt Collection Practices Act Rulemaking
The Consumer Financial Protection Bureau has published a portion of its long-awaited Fair Debt Collection Practices Act final rule to modernize and clarify rules around third-party debt collection. The rule will take effect one year after publication in the Federal Register. The FDCPA does not generally apply to creditors collecting their own debts and thus does not generally apply to banks. When the initial proposal was issued in May 2019, however, it included proposed limitations on consumer contact subject to the bureau’s Dodd-Frank authority to restrict unfair, deceptive or abusive acts or practices.
The bureau refrained from implementing these consumer contact restrictions that would have applied to banks and other first-party creditors. These restrictions would have introduced considerable legal uncertainty to banks’ ability to contact consumers in the critical stages of early delinquency.
The final rule also covers the use of text messaging and email to contact consumers regarding debts and provides for consumer opt-out of these contact methods. Additionally, it includes provisions on disputes as well as record retention requirements for FDCPA debt collectors. The CFPB indicated it will release another iteration of the rulemaking in December that will focus on consumer disclosures.
Coin Task Force Seeks Survey Responses
The U.S. Coin Task Force is seeking feedback on a five-minute survey on coin circulation disruptions. Survey responses are due by close of business Wednesday, Nov. 11.
IRS Extends Deadline to Claim EIPs
The Internal Revenue Service has extended the deadline to Nov. 21 to claim CARES Act economic impact payment and designated Nov. 10 as “National EIP Registration Day” as part of a final push to get the approximately 9 million Americans who do not typically file federal income tax returns to register for the payment.
The IRS indicated it will be providing additional support before the extended deadline with partners that work with low-income and underserved communities, and that it has sent out almost 9 million letters to people who may be eligible for an EIP but do not normally file tax returns. Most eligible U.S. taxpayers automatically received their EIPs earlier this year; for those who do not have a filing obligation, the IRS created a non-filers’ tool online for people to register and get their EIPs.
Individuals can receive up to $1,200, married couples can receive up to $2,400, and those with children under the age of 17 may receive up to an additional $500 per qualifying child.
Utah ILC Opens for Business
Nelnet Bank, the first industrial loan company to open since 2008, launched this week. The Salt Lake City-based bank focuses on student loan refinances and is a subsidiary of Nelnet, one of the nation’s largest student loan servicers.
IBA COVID-19 Updates
The IBA has several COVID-19 resources and updates available at our website.