22 MAY / JUNE 2022 Dax Denton 'LMIJ 4SPMG] 3JƤGIV Indiana Bankers Association ddenton@indiana.bank @ibagovrelations Ross Teare Vice President - Government Relations Indiana Bankers Association rteare@indiana.bank GR SUMMIT The Indiana General Assembly concluded all business for the 2022 legislative session early in the morning on March 9, after working late into the preceding night. Adjournment and sine die were declared several days earlier than the legislative calendar had dictated. This year’s early adjournment was a marked contrast to last year, when the legislature concluded session without declaring sine die, taking an unprecedented 363 days to adjourn for the year. For the 2022 session, legislators introduced 898 bills between the Senate and House. Of these, 265 bills, or roughly 30% of the bills introduced, survived the first half of session. Of those 265 bills that survived to the halfway point, 177 bills, roughly 20%, were ultimately passed to be sent to Gov. Eric Holcomb’s desk for signature into law. Also of the 898 bills originally introduced, the Indiana Bankers Association tracked 220, of which 53 made it to the governor’s desk. Among the bills tracked by the IBA Government Relations Team, a handful will have a direct impact on Indiana banking, with two being particularly essential: % SEA 371 gave lenders ease of mind with protections regarding the sunsetting of the LIBOR interest rate, providing a clear replacement base interest rate for contracts that reference LIBOR, as the rate will no longer exist as of June 2023. This bill was effective upon the governor’s signature, becoming law on March 10. % SEA 408 enabled state-chartered institutions to participate in deals using the recent Office of the Comptroller of the Currency tax credit investment rules, including tax equity investments, without the need for prior approval from the Indiana Department of Financial Institutions. This bill will be effective July 1. The IBA also supported SEA 351, which defined virtual currency under the Uniform Consumer Credit 2022 Legislative Session Summary Code. This much-needed cleanup language from last year’s SEA 400 moved Indiana to an electronic lien and title system for vehicles. Under HEA 1167, the effective dates of transitioning the state to an electronic lien and title system are moved to coincide with the needs of the Indiana Bureau of Motor Vehicles. HEA 1167 also reaffirmed the fee structure that financial institutions need to recoup their costs to transfer to the electronic systems. This legislation will ensure that this long-awaited system occurs more reasonably and efficiently, allowing the BMV to make the transition more effectively. Another feature of the 2022 legislative session is that we once again saw IBA-supported language added into a bill in the last week of session during conference committee. SB 262, regarding housing tax credits, was amended into SB 382, the Department of Revenue’s annual bill, after not receiving a hearing in the second half of the legislative session. The added language created a new housing tax credit in Indiana, designed to complement federal housing tax credits as indicated in Section 42. This enhancement will have the effect of increasing the viability of new developments in multifamily housing. On the broader COVID-19 front, the General Assembly enacted parameters regarding vaccine passports and vaccine mandates in the workplace. The General Assembly banned the ability of local governments to require vaccine passports and dictated that if employers mandate vaccinations, they must provide individual exemptions to opt out for medical or religious reasons, or due to immunity from previous infection with COVID-19. Another broad topic that arose this session dealt with taxation. Indiana experienced a large budgetary surplus, and in response fiscal leadership set the goal of cutting taxes. The final agreement this legislative session cut Indiana taxes by $1 billion.
RkJQdWJsaXNoZXIy MTg3NDExNQ==