28 JULY / AUGUST 2023 The Indiana General Assembly has finalized all work for the 2023 regular legislative session, working late into the night on Thursday, April 27, for a 1:45 a.m. official Sine Die. Lawmakers always have more time for legislative work in odd-numbered years when the biennial budget is drafted, but the General Assembly was again able to finish a few days earlier than scheduled. This year, there were 1,162 bills filed for consideration – 673 in the House and 489 in the Senate. In addition to the budget, top priorities this year included the workforce, housing, education and addressing the cost of health care. Lawmakers passed 22% of the bills filed, including legislation addressing each of those key areas. The banking sector had another successful session. The IBA government relations team got language added into Senate Enrolled Act (SEA) 2 that reiterated existing Indiana Department of Revenue (DOR) guidance in that real estate investment trusts (REITs) are a permissible investment under the Indiana Financial Institutions Tax (FIT). This was done in response to growing concerns from IBA members being challenged by DOR regarding their REIT structure. The IBA also lobbied for the passage of SEA 35, requiring financial literacy to be taught as a separate course in high schools as a condition of graduation starting with the class of 2028. Success is not only measured by passage of beneficial bills, but by keeping problematic bills at bay. In two examples of this, the IBA exempted the industry from the application of key bills that would have had significant impacts on the banking sector. House Enrolled Act (HEA) 1008, the anti-ESG bill, was introduced as a House Republican Caucus priority bill. 2023 Legislative Session Summary The IBA successfully lobbied for an exemption from the bill, which would have created significant problems for banks managing market risks while providing investments for the Indiana Public Retirement System. The second bill, SEA 5, was also a priority bill filed by the Senate Republican Caucus. The bill creates a broad new standard for businesses related to data protection and provides consumers with sweeping new rights related to the storage of data. The IBA government relations team was again successful in securing an exemption for financial institutions that already complied with strict standards related to data security under the Gramm-Leach-Bliley Act. The IBA successfully advocated against several troubling bills from passing at all. Most notably, the Association was central to defeating HB 1494, a bill that would have limited the amount of interest a lender may charge regarding credit card balances. The bill was never given a hearing in the House Financial Institutions Committee. The industry also fought back against legislation that would have prohibited a payment processor from storing information for purposes of reoccurring payments. While the burden was not directly focused on the financial institution, the potential disruptions in the market could have been significant. Concern was expressed about the increased operational and reputational risks this would have created. The IBA faced another serious debate regarding a new concept of establishing special tax or special assessment districts. These districts would use a super lien to sell bonds and use the proceeds to fund general development, both for infrastructure and broader development. A Senate bill was reintroduced this session permitting this concept to expand statewide and for the scope of projects available to be financed Dax Denton Chief Policy Officer Indiana Bankers Association DDenton@indiana.bank Ross Teare Vice President - Government Relations Indiana Bankers Association RTeare@indiana.bank GR SUMMIT
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