18 JANUARY / FEBRUARY 2022 GR SUMMIT Indiana’s 2022 General Assembly legislative session is underway. After almost two years of adjustments to the legislative process to mitigate the risk of COVID-19, this year’s session is expected to be back to business as usual. The pandemic will still have a broad impact on policy as bills are expected on a variety of issues related to the pandemic. The process, however, should appear normal to those who were present for legislative sessions pre-pandemic. As it is every other year, this year’s session is considered a “short session” due to the length of time scheduled for lawmakers to meet. The 2022 session started Jan. 4 and is currently scheduled to end on March 14. The short time period leaves both chambers with just under a month to hold initial committee hearings and, during the second month of session, to pass legislative priorities for further consideration. While a month may seem like plenty of time in many circumstances, it can be lightning quick when working out wrinkles related to policy. As is the case for every short session, committees must prioritize legislative initiatives based on the compressed calendar and manage the limited time effectively. This can be an impediment to those seeking passage of legislation, and a benefit to those fighting against complex or controversial bills. The legislative agenda for the Indiana Bankers Association includes several items of importance, taking into account the short session timeframe. First, we will be advocating for legislation that assists banks with the transition from LIBOR (London Interbank Offered Rate) to SOFR (Secured Overnight Funding Rate). New York was the first state to enact language that applied SOFR as a default rate to existing financial instruments that used LIBOR. With the use of LIBOR ending in 2023, it is imperative that that an alternative rate be referenced for existing contracts that relied on LIBOR. The legislation the IBA is advocating for would do so and also replace LIBOR with SOFR. In addition to the LIBOR transition fix, the IBA is advocating for several changes to Indiana statute to allow for recent Office of the Comptroller of the Currency rules to apply to state-chartered institutions, without having to seek the parity approval of the Indiana Department of Financial Institutions on a caseby-case basis. The OCC rules needing codification into statute apply to tax equity financing entities, community and economic development entities, community development projects and other public welfare investments. The IBA will also be addressing several issues related to the electronic lien and title legislation from last session, a Uniform Commercial Code issue that requires clarification, and several tax issues that may arise over the course of session in the coming two months. As with all past legislative sessions, the IBA will Dax Denton 'LMIJ 4SPMG] 3JƤGIV Indiana Bankers Association ddenton@indiana.bank @ibagovrelations Ross Teare Vice President - Government Relations Indiana Bankers Association rteare@indiana.bank 2022 Session Overview Rising industry issues in Indiana
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