January 31, 2003





HOUSE BILL No. 1006

_____


DIGEST OF HB 1006 (Updated January 22, 2003 6:50 PM - DI 103)



Citations Affected: IC 4-4.

Synopsis: Indiana growth fund and economic development. Transfers the twenty-first century research and technology fund and program from the budget agency to the development finance authority. Makes changes in the administration of the program. Removes the exclusion of the funding of ordinary and recurring operating costs or expenditures from the definition of an educational facility project. Establishes the venture fund and program. Provides for the transfer of money from the business development loan fund. Changes the definition of "high growth company with high skilled jobs". Makes related changes in the development finance authority. Establishes the growth fund. Provides for the transfer of money to the twenty-first century research and technology fund and the venture fund from money realized from the securitization of the payments under the tobacco settlement agreement. Requires the report of financial data by a business enterprise to the authority to be prepared according to generally accepted accounting principles.

Effective: July 1, 2003.





Hasler , Welch , Scholer




    January 15, 2003, read first time and referred to Committee on Technology, Research and Development.
    January 23, 2003, amended, reported _ Do Pass. Referred to Committee on Ways and Means pursuant to Rule 127.






January 31, 2003

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2002 Regular or Special Session of the General Assembly.

HOUSE BILL No. 1006



    A BILL FOR AN ACT to amend the Indiana Code concerning economic development.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 4-4-5.1-0.5; (03)HB1006.1.1. -->     SECTION 1. IC 4-4-5.1-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 0.5. As used in this chapter, "authority" refers to the Indiana development finance authority established by IC 4-4-11-4.
SOURCE: IC 4-4-5.1-3; (03)HB1006.1.2. -->     SECTION 2. IC 4-4-5.1-3, AS ADDED BY P.L.190-1999, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) The Indiana twenty-first century research and technology fund is established to provide grants or loans to support proposals for economic development in one (1) or more of the following areas:
        (1) To increase the capacity of Indiana institutions of higher education, Indiana businesses, and Indiana nonprofit corporations and organizations to compete successfully for federal or private research and development funding.
        (2) To stimulate the transfer of research and technology into marketable products.
        (3) To assist with diversifying Indiana's economy by focusing

investment in biomedical research and biotechnology, information technology, and other high technology industry clusters requiring high skill, high wage employees.
        (4) To encourage an environment of innovation and cooperation among universities and businesses to promote research activity.
    (b) The fund shall be administered by the budget agency. authority. The fund consists of appropriations from the general assembly and gifts and grants to the fund. The budget agency board shall review each recommendation. approve and recommend applications to the budget committee. The budget agency, authority, after review by the budget committee, may approve, deny, or modify grants and loans recommended by the board. Money in the fund may not be used to provide a recurring source of revenue for the normal operating expenditures of any project.
    (c) The treasurer of state authority shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. conformity with IC 4-4-11 and the investment policy established by the authority.
    (d) The money in the fund at the end of a state fiscal year does not revert to the state general fund but remains in the fund to be used exclusively for the purposes of this chapter.

SOURCE: IC 4-4-5.1-5; (03)HB1006.1.3. -->     SECTION 3. IC 4-4-5.1-5, AS ADDED BY P.L.190-1999, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. (a) The board has the following powers:
        (1) To accept, analyze, and approve applications under this chapter.
        (2) To contract with experts for advice and counsel.
        (3) To employ staff to assist in carrying out this chapter, including providing assistance to applicants who wish to apply for a grant or loan from the fund, analyzing proposals, working with experts engaged by the board, and preparing reports and recommendations for the board.
        (4) To approve and recommend applications for grants or loans from the fund to the budget committee and budget agency. the authority.
    (b) The board shall give priority to applications for grants or loans from the fund that:
        (1) have the greatest economic development potential; and
        (2) require the lowest ratio of money from the fund compared with the combined financial commitments of the applicant and those cooperating on the project.
    (c) The board shall make final funding determinations for

applications for grants or loans from the fund that will be submitted to the budget agency for approval, the budget committee for review, and the authority for approval. In making a determination on a proposal intended to obtain federal or private research funding, the board shall be advised by a peer review panel and shall consider the following factors in evaluating the proposal:
        (1) The scientific merit of the proposal.
        (2) The predicted future success of federal or private funding for the proposal.
        (3) The ability of the researcher to attract merit based scientific funding of research.
        (4) The extent to which the proposal evidences interdisciplinary or inter-institutional collaboration among two (2) or more Indiana institutions of higher education or private sector partners, as well as cost sharing and partnership support from the business community.
    (d) The peer review panel shall be chosen by and report to the board. In determining the composition and duties of a peer review panel, the board shall consider the National Institutes of Health and the National Science Foundation peer review processes as models. The members of the panel must have extensive experience in federal research funding. A panel member may not have a relationship with any private entity or academic institution in Indiana that would constitute a conflict of interest for the panel member.
    (e) In making a determination on any other application for a grant or loan from the fund involving a proposal to transfer research results and technologies into marketable products or commercial ventures, the board shall consult with experts as necessary to analyze the likelihood of success of the proposal and the relative merit of the proposal.

SOURCE: IC 4-4-5.1-8.5; (03)HB1006.1.4. -->     SECTION 4. IC 4-4-5.1-8.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8.5. (a) This section applies to a meeting of the board at which at least four (4) members of the board are physically present at the place where the meeting is conducted.
    (b) A member of the board may participate in a meeting of the board by using a means of communication that permits:
        (1) all other members participating in the meeting; and
        (2) all members of the public physically present at the place where the meeting is conducted;
to simultaneously communicate with each other during the meeting.
    (c) A member who participates in a meeting under subsection

(b) is considered to be present at the meeting.
    (d) The memoranda of the meeting prepared under IC 5-14-1.5-4 must also state the name of each member who:
        (1) was physically present at the place where the meeting was conducted;
        (2) participated in the meeting by using a means of communication described in subsection (b); and
        (3) was absent.

SOURCE: IC 4-4-5.1-11; (03)HB1006.1.5. -->     SECTION 5. IC 4-4-5.1-11, AS ADDED BY P.L.190-1999, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 11. The board may use money in the fund to cover administrative expenses incurred in carrying out the requirements of this chapter, including the following administrative expenses:
        (1) Staff salaries.
        (2) Professional fees.
        (3) Office expenses.
        (4) Training expenses.
        (5) Expenses for studies.
        (6) Educational programs or conferences that will assist applicants or awardees.

SOURCE: IC 4-4-10.9-0.5; (03)HB1006.1.6. -->     SECTION 6. IC 4-4-10.9-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 0.5. "Accredited investor" has the meaning set forth in IC 4-4-11.7-1.
SOURCE: IC 4-4-10.9-3.5; (03)HB1006.1.7. -->     SECTION 7. IC 4-4-10.9-3.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3.5. "Business" means a partnership, a firm, an association, a joint venture, a limited liability company, a limited liability partnership, or a corporation.
SOURCE: IC 4-4-10.9-4; (03)HB1006.1.8. -->     SECTION 8. IC 4-4-10.9-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. "Contracting party" means any party to a lease, sales contract, co-venture investment agreement (whether in the form of a loan, loan guarantee, or pool participation agreement), or loan agreement other than the authority.
SOURCE: IC 4-4-10.9-5.5; (03)HB1006.1.9. -->     SECTION 9. IC 4-4-10.9-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5.5. "Co-venture investment loan" means a venture capital or seed capital investment in the form of a loan by the authority that is made to a business after or in conjunction with equity investments by one (1) or more professional or accredited investors that have made or are making equity investments in the business.
SOURCE: IC 4-4-10.9-6.2; (03)HB1006.1.10. -->     SECTION 10. IC 4-4-10.9-6.2, AS AMENDED BY P.L.4-2002, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6.2. (a) "Educational facility project" includes:
        (1) the acquisition of land, site improvements, infrastructure improvements, buildings, or structures, the rehabilitation, renovation, and enlargement of buildings and structures, machinery, equipment, furnishings, or facilities (or any combination of these):
            (A) comprising or being functionally related and subordinate to any aquaria, botanical societies, historical societies, libraries, museums, performing arts associations or societies, scientific societies, zoological societies, and independent elementary, secondary, or postsecondary schools (or any combination of these) that engages in the cultural, intellectual, scientific, educational, or artistic enrichment of the people of the state the development or expansion of which serves the purposes set forth in IC 4-4-11-2;
            (B) is not used or to be used primarily for sectarian instruction or study or as a place for devotional activities; and
            (C) is not used or to be used primarily in connection with any part of the program of a school or department of divinity for any religious denomination; or
        (2) funding (including reimbursement or refinancing) by a nonprofit organization described in subsection (b) of:
            (A) real property and improvements;
            (B) personal property; or
            (C) noncapital costs to fund a judgment, a settlement, or other cost or liability. other than an ordinary and recurring operating cost or expenditure.
    (b) For purposes of subsection (a)(2), a nonprofit organization must be:
        (1) qualified as tax exempt under Section 501(c)(3) of the Internal Revenue Code; and
        (2) have headquarters or a primary educational or exhibit facility located on property owned by or titled in the name of the state of Indiana or an agency, a commission, or an instrumentality of the state of Indiana that serves the purposes set forth in IC 4-4-11-2.
SOURCE: IC 4-4-10.9-9.5; (03)HB1006.1.11. -->     SECTION 11. IC 4-4-10.9-9.5, AS ADDED BY P.L.227-1999, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9.5. "High growth company with high skilled jobs" means a company that satisfies all of the following conditions:
        (1) The company:
            (A) had at least a fifteen ten percent (15%) (10%) average annual growth in company earnings gross revenue during the past three (3) years;
            (B) is entering a new product or process area; or
            (C) is classified in an industry that had at least a fifteen ten percent (15%) (10%) average annual growth in earnings gross revenue during the past three (3) years.
        (2) The company has a substantial number of employees in jobs:
            (A) requiring post-secondary education or its equivalent; or
            (B) that are in occupational codes classified as high skill by the Bureau of Labor Statistics, United States Department of Labor.
        (3) The company has a substantial number of employees that earn at least one hundred fifty percent (150%) of Indiana per capita personal income.
SOURCE: IC 4-4-10.9-15.5; (03)HB1006.1.12. -->     SECTION 12. IC 4-4-10.9-15.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 15.5. "Loan guarantee" means, in addition to the guaranty program, a loan guarantee provided to professional or accredited investors from the Indiana venture fund under IC 4-4-11.7.
SOURCE: IC 4-4-10.9-24.5; (03)HB1006.1.13. -->     SECTION 13. IC 4-4-10.9-24.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 24.5. "Professional investor" means a bank, a bank holding company, a savings institution, a trust company, a credit union, an insurance company, an investment company registered under the federal Investment Company Act of 1940, a pension or profit sharing trust, another financial institution or institutional buyer, a licensee under the federal Small Business Investment Act of 1958, et seq., or any person, partnership, or other entity whose:
        (1) principal business is making venture capital investments; and
        (2) net worth exceeds two hundred fifty ($250,000) thousand dollars.

SOURCE: IC 4-4-10.9-26.5; (03)HB1006.1.14. -->     SECTION 14. IC 4-4-10.9-26.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 26.5. "Seed capital" means financing that is provided for:
        (1) the applied research, development, testing, and initial marketing of a technology, product, process, or invention;
        (2) company formation;
        (3) intellectual property protection and acquisition; and
        (4) associated working capital.

SOURCE: IC 4-4-10.9-27.8; (03)HB1006.1.15. -->     SECTION 15. IC 4-4-10.9-27.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 27.8. "Technology commercialization project" means any combination of:
        (1) applied research, development, testing, and initial marketing of a technology, a product, a process, or an invention and associated working capital, including the hiring of professionals;
        (2) the development of a technology, product, process, or invention; and
        (3) rehabilitation, creation, or enhancement of research facilities, renovation, and enlargement of buildings and structures, machinery, equipment, or supplies;
comprising or being functionally related or subordinate to any project, the development or expansion of which serves the public purposes set forth in IC 4-4-11-2.

SOURCE: IC 4-4-10.9-27.8; (03)HB1006.1.16. -->     SECTION 16. IC 4-4-10.9-27.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 27.8. "Venture capital" means financing that is provided for the capital needs of a business that is developing a new technology, product, process, or invention.
SOURCE: IC 4-4-11-2; (03)HB1006.1.17. -->     SECTION 17. IC 4-4-11-2, AS AMENDED BY P.L.4-2002, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. (a) The legislature makes the following findings of fact:
        (1) That there currently exists in certain areas of the state critical conditions of unemployment, lack of adequate capital for research and technology commercialization, or environmental pollution, including water pollution, air pollution, sewage and solid waste, radioactive waste, thermal pollution, radiation contamination, and noise pollution, and that these conditions may well exist, from time to time, in other areas of the state.
        (2) That in some areas of the state such conditions are chronic and of long standing and that without remedial measures they may become so in other areas of the state.
        (3) That economic insecurity due to unemployment, inadequate capital, or environmental pollution is a menace to the health, safety, morals, and general welfare of not only the people of the affected areas but of the people of the entire state.
        (4) That involuntary unemployment and its resulting burden of

indigency falls with crushing force upon the unemployed worker and ultimately upon the state in the form of public assistance and unemployment compensation.
        (5) That security against unemployment and the resulting spread of indigency and economic stagnation in the areas affected can best be provided by:
            (A) the promotion, attraction, stimulation, rehabilitation, and revitalization of industrial development projects, technology commercialization projects, rural development projects, mining operations, and agricultural operations that involve the processing of agricultural products;
            (B) the promotion and stimulation of international exports; and
            (C) the education, both formal and informal, of people of all ages throughout the state by the promotion, attraction, construction, renovation, rehabilitation, and revitalization of and assistance to educational facility projects.
        (6) That the present and prospective health, safety, morals, right to gainful employment, and general welfare of the people of the state require as a public purpose the abatement or control of pollution, the promotion of increased educational enrichment (including cultural, intellectual, scientific, or artistic opportunities) for people of all ages through new, expanded, or revitalized educational facility projects or through assisting educational facility projects, and the promotion of employment creation or retention through development of new and expanded industrial development projects, technology commercialization projects, rural development projects, mining operations, and agricultural operations that involve the processing of agricultural products.
        (7) That there is a need to stimulate a larger flow of private investment funds from commercial banks, investment bankers, professional investors, insurance companies, other financial institutions, and individuals into such industrial development projects, technology commercialization projects, rural development projects, mining operations, international exports, and agricultural operations that involve the processing of agricultural products in the state.
        (8) That the authority can encourage the making of loans, loan guarantees, co-venture investment loans, or leases for creation or expansion of industrial development projects, technology commercialization projects, rural development projects, mining operations, international exports, and agricultural operations that

involve the processing of agricultural products, thus putting a larger portion of the private capital available in Indiana for investment to use in the general economic development of the state. in Indiana.
        (9) That the issuance of bonds of the authority to create a financing pool for industrial development projects promoting a substantial likelihood of opportunities for:
            (A) gainful employment;
            (B) business opportunities;
            (C) educational enrichment (including cultural, intellectual, scientific, or artistic opportunities);
            (D) the abatement, reduction, or prevention of pollution;
            (E) the removal or treatment of any substances in materials being processed that otherwise would cause pollution when used; or
            (F) increased options for and availability of child care;
        will improve the health, safety, morals, and general welfare of the people of the state and constitutes a public purpose for which the authority shall exist and operate.
        (10) That the issuance of bonds of the authority to create a funding source for the making of guaranteed participating loans will promote and encourage an expanding international exports market and international exports sales and will promote the general welfare of all of the people of Indiana by assisting Indiana businesses through stimulation of the expansion of international exports sales for Indiana products and services, especially those of small and medium-sized businesses, by providing financial assistance through the authority.
    (b) The Indiana development finance authority shall exist and operate for the public purposes of:
        (1) promoting opportunities for gainful employment and business opportunities by the promotion and development of industrial development projects, technology commercialization projects, rural development projects, mining operations, international exports, and agricultural operations that involve the processing of agricultural products, in any areas of the state;
        (2) promoting the educational enrichment (including cultural, intellectual, scientific, or artistic opportunities) of all the people of the state by the promotion, development, and assistance of educational facility projects;
        (3) promoting affordable farm credit and agricultural loan financing at interest rates that are consistent with the needs of

borrowers for farming and agricultural enterprises;
        (4) preventing and remediating environmental pollution, including water pollution, air pollution, sewage and solid waste disposal, radioactive waste, thermal pollution, radiation contamination, and noise pollution affecting the health and well being of the people of the state by the promotion and development of industrial development projects; and
        (5) promoting affordable and accessible child care for the people of the state by the promotion and development of child care facilities; and
        (6) promoting research, innovation, technology transfer, and technology commercialization by the promotion, development, and assistance of technology commercialization projects.

SOURCE: IC 4-4-11-15; (03)HB1006.1.18. -->     SECTION 18. IC 4-4-11-15, AS AMENDED BY P.L.4-2002, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 15. (a) The authority is granted all powers necessary or appropriate to carry out and effectuate its public and corporate purposes under this chapter, IC 4-4-11.5, IC 4-4-21, IC 4-4-26, IC 13-19-5, and IC 15-7-5, including but not limited to the following:
        (1) Have perpetual succession as a body politic and corporate and an independent instrumentality exercising essential public functions.
        (2) Without complying with IC 4-22-2, adopt, amend, and repeal bylaws, rules, and regulations not inconsistent with this chapter, IC 4-4-11.5, IC 4-4-21, IC 4-4-26, IC 13-19-5, and IC 15-7-5 and necessary or convenient to regulate its affairs and to carry into effect the powers, duties, and purposes of the authority and conduct its business.
        (3) Sue and be sued in its own name.
        (4) Have an official seal and alter it at will.
        (5) Maintain an office or offices at a place or places within the state as it may designate.
        (6) Make and execute contracts and all other instruments necessary or convenient for the performance of its duties and the exercise of its powers and functions under this chapter, IC 4-4-11.5, IC 4-4-21, IC 4-4-26, IC 13-19-5, and IC 15-7-5.
        (7) Employ architects, engineers, attorneys, financial advisers, inspectors, accountants, agriculture experts, silviculture experts, aquaculture experts, and financial experts, and such other advisors, consultants, and agents as may be necessary in its judgment and to fix their compensation.
        (8) Procure insurance against any loss in connection with its property and other assets, including loans and loan notes in amounts and from insurers as it may consider advisable.
        (9) Borrow money, make guaranties, issue bonds, and otherwise incur indebtedness for any of the authority's purposes, and issue debentures, notes, or other evidences of indebtedness, whether secured or unsecured, to any person, as provided by this chapter, IC 4-4-21, IC 13-19-5, and IC 15-7-5.
        (10) Procure insurance or guaranties from any public or private entities, including any department, agency, or instrumentality of the United States, for payment of any bonds issued by the authority or for reinsurance on amounts paid from the industrial development project guaranty fund, including the power to pay premiums on any insurance or reinsurance.
        (11) Purchase, receive, take by grant, gift, devise, bequest, or otherwise, and accept, from any source, aid or contributions of money, property, labor, or other things of value to be held, used, and applied to carry out the purposes of this chapter, IC 4-4-11.5, IC 4-4-21, IC 4-4-26, IC 13-19-5, and IC 15-7-5, subject to the conditions upon which the grants or contributions are made, including but not limited to gifts or grants from any department, agency, or instrumentality of the United States, and lease or otherwise acquire, own, hold, improve, employ, use, and otherwise deal in and with real or personal property or any interest in real or personal property, wherever situated, for any purpose consistent with this chapter, IC 4-4-21, or IC 15-7-5.
        (12) Enter into agreements with any department, agency, or instrumentality of the United States or this state and with lenders and enter into loan agreements, sales contracts, and leases with contracting parties, including borrowers, lenders, developers, professional or accredited investors, or users, for the purpose of planning, regulating, and providing for the financing and refinancing of any agricultural enterprise (as defined in IC 15-7-4.9-2), rural development project (as defined in IC 15-7-4.9-19.5), industrial development project, technology commercialization projects, or international exports, and distribute data and information concerning the encouragement and improvement of agricultural enterprises and agricultural employment, rural development projects, industrial development projects, international exports, and other types of employment in the state undertaken with the assistance of the authority under this chapter.
        (13) Enter into contracts or agreements with lenders and lessors for the servicing and processing of loans and leases pursuant to this chapter, IC 4-4-21, and IC 15-7-5.
        (14) Provide technical assistance to local public bodies and to profit and nonprofit entities in the development or operation of agricultural enterprises, rural development projects, technology commercialization projects, and industrial development projects.
        (15) To the extent permitted under its contract with the holders of the bonds of the authority, consent to any modification with respect to the rate of interest, time, and payment of any installment of principal or interest, or any other term of any contract, loan, loan note, loan note commitment, contract, lease, or agreement of any kind to which the authority is a party.
        (16) To the extent permitted under its contract with the holders of bonds of the authority, enter into contracts with any lender containing provisions enabling it to reduce the rental or carrying charges to persons unable to pay the regular schedule of charges when, by reason of other income or payment by any department, agency, or instrumentality of the United States of America or of this state, the reduction can be made without jeopardizing the economic stability of the agricultural enterprise, rural development project, or industrial development project being financed.
        (17) Invest any funds not needed for immediate disbursement, including any funds held in reserve, in direct and general obligations of or obligations fully and unconditionally guaranteed by the United States, obligations issued by agencies of the United States, obligations of this state, or any obligations or securities which may from time to time be legally purchased by governmental subdivisions of this state pursuant to IC 5-13, or any obligations or securities which are permitted investments for bond proceeds or any construction, debt service, or reserve funds secured under the trust indenture or resolution pursuant to which bonds are issued.
        (18) Collect fees and charges, as the authority determines to be reasonable, in connection with its loans, co-venture investment loans and loan guarantees, guarantees, advances, insurance, commitments, and servicing.
        (19) Cooperate and exchange services, personnel, and information with any federal, state, or local government agency, or instrumentality of the United States or this state.
        (20) Sell, at public or private sale, with or without public bidding, any loan or other obligation held by the authority.
        (21) Enter into agreements concerning, and acquire, hold, and dispose by any lawful means, land or interests in land, building improvements, structures, personal property, franchises, patents, accounts receivable, loans, assignments, guarantees, and insurance needed for the purposes of this chapter, IC 4-4-21, IC 4-4-26, IC 13-19-5, or IC 15-7-5.
        (22) Take assignments of accounts receivable, loans, guarantees, insurance, notes, mortgages, security agreements securing notes, and other forms of security, attach, seize, or take title by foreclosure or conveyance to any industrial development project or technology commercialization project when a guaranteed loan thereon is clearly in default and when in the opinion of the authority such acquisition is necessary to safeguard the industrial development project guaranty fund or the Indiana venture fund, and sell, or on a temporary basis, lease, or rent such industrial development project or technology commercialization project for any use.
        (23) Expend money, as the authority considers appropriate, from the industrial development project guaranty fund created by section 16 of this chapter and the Indiana venture fund established by IC 4-4-11.7-5.
        (24) Purchase, lease as lessee, construct, remodel, rebuild, enlarge, or substantially improve industrial development projects, including land, machinery, equipment, or any combination thereof.
        (25) Lease industrial development projects to users or developers, with or without an option to purchase.
        (26) Sell industrial development projects to users or developers, for consideration to be paid in installments or otherwise.
        (27) Make direct loans from the proceeds of the bonds to users or developers for:
            (A) the cost of acquisition, construction, or installation of industrial development projects, including land, machinery, equipment, or any combination thereof; or
            (B) eligible expenditures for an educational facility project described in IC 4-4-10.9-6.2(a)(2); or
             (C) eligible expenditures for a technology commercialization project;
        with the loans to be secured by the pledge of one (1) or more bonds, notes, warrants, or other secured or unsecured debt

obligations of the users or developers.
        (28) Lend or deposit the proceeds of bonds to or with a lender or professional or accredited investor for the purpose of:
             (A) furnishing funds to such lender or investor to be used for making a loan to a developer or user for the financing of industrial development projects under this chapter; or
            (B) making capital available to an eligible technology commercialization project.

        (29) Enter into agreements with users or developers to allow the users or developers, directly or as agents for the authority, to wholly or partially construct industrial development projects to be leased from or to be acquired by the authority.
        (30) Establish reserves from the proceeds of the sale of bonds, other funds, or both, in the amount determined to be necessary by the authority to secure the payment of the principal and interest on the bonds.
        (31) Adopt rules guidelines, without complying with IC 4-22-2, governing its activities authorized under this chapter, IC 4-4-21, IC 4-4-11.7, IC 4-4-26, IC 13-19-5, and IC 15-7-5.
        (32) Use the proceeds of bonds to make guaranteed participating loans.
        (33) Purchase, discount, sell, and negotiate, with or without guaranty, notes and other evidences of indebtedness.
        (34) Sell and guarantee securities.
        (35) Make guaranteed participating loans under IC 4-4-21-26.
        (36) Procure insurance to guarantee, insure, coinsure, and reinsure against political and commercial risk of loss, and any other insurance the authority considers necessary, including insurance to secure the payment of principal and interest on notes or other obligations of the authority.
        (37) Provide performance bond guarantees to support eligible export loan transactions, subject to the terms of this chapter or IC 4-4-21.
        (38) Provide financial counseling services to Indiana exporters.
        (39) Accept gifts, grants, or loans from, and enter into contracts or other transactions with, any federal or state agency, municipality, private organization, or other source.
        (40) Sell, convey, lease, exchange, transfer, or otherwise dispose of property or any interest in property, wherever the property is located.
        (41) Cooperate with other public and private organizations to promote export trade activities in Indiana.


        (42) Make guarantees and administer the agricultural loan and rural development project guarantee fund established by IC 15-7-5.
        (43) Take assignments of notes and mortgages and security agreements securing notes and other forms of security, and attach, seize, or take title by foreclosure or conveyance to any agricultural enterprise or rural development project when a guaranteed loan to the enterprise or rural development project is clearly in default and when in the opinion of the authority the acquisition is necessary to safeguard the agricultural loan and rural development project guarantee fund, and sell, or on a temporary basis, lease or rent the agricultural enterprise or rural development project for any use.
        (44) Expend money, as the authority considers appropriate, from the agricultural loan and rural development project guarantee fund created by IC 15-7-5-19.5.
        (45) Reimburse from bond proceeds expenditures for industrial development projects under this chapter.
        (46) Make direct loans and co-venture investment loans and loan guarantees to professional and accredited investors to provide seed and venture capital to technology commercialization projects.
        (47) Through administration of the twenty-first century research and technology fund and the Indiana venture fund, award grants to and enter into contracts with universities and research institutions to:
            (A) increase the capacity of Indiana institutions of higher education, Indiana businesses, and Indiana nonprofit corporations and organizations to compete successfully for federal and private research and development funds;
            (B) stimulate the transfer of research and technology into marketable products;
            (C) assist with diversifying Indiana's economy by focusing investment on biomedical research, biotechnology, information technology, and other high technology industry clusters requiring high skill, high wage employees; and
            (D) encourage an environment of innovation and cooperation among universities and businesses to promote research.
        (48)
Do any act necessary or convenient to the exercise of the powers granted by this chapter, IC 4-4-11.5, IC 4-4-21,

IC 4-4-26, IC 13-19-5, or IC 15-7-5, or reasonably implied from those statutes, including but not limited to compliance with requirements of federal law imposed from time to time for the issuance of bonds.
    (b) The authority's powers under this chapter shall be interpreted broadly to effectuate the purposes of this chapter and may not be construed as a limitation of powers.
    (c) This chapter does not authorize the financing of industrial development projects for a developer unless any written agreement that may exist between the developer and the user at the time of the bond resolution is fully disclosed to and approved by the authority.

SOURCE: IC 4-4-11-16.3; (03)HB1006.1.19. -->     SECTION 19. IC 4-4-11-16.3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 16.3. To further the purposes of this chapter, and in addition to the authority's other powers under this chapter, the authority may transfer funds:
         (1) from the industrial development guaranty project fund to the capital access account established by IC 4-4-26-37; and
        (2) from the business development loan fund (IC 4-4-11-16.5) to the Indiana venture fund established by IC 4-4-11.7-5.

SOURCE: IC 4-4-11.7; (03)HB1006.1.20. -->     SECTION 20. IC 4-4-11.7 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]:
     Chapter 11.7. Indiana Venture Fund
    Sec. 1. As used in this chapter, "accredited investor" means an investor who meets the most current definition of accredited investor as defined:
        (1) in the federal Securities Act of 1933; or
        (2) by the Securities and Exchange Commission.
    Sec. 2. As used in this chapter, "advisory board" refers to the advisory board established by section 11 of this chapter.
    Sec. 3. As used in this chapter, "authority" refers to the Indiana development finance authority established by IC 4-4-11-4.
    Sec. 4. As used in this chapter, "fund" refers to the Indiana venture fund established by section 5 of this chapter.
    Sec. 5. The Indiana venture fund is established for the purposes described in section 10 of this chapter. The fund shall be administered by the authority separately from the state treasury.
    Sec. 6. The expenses of administering the fund shall be paid from money in the fund.
    Sec. 7. The authority shall invest the money in the fund not currently needed to meet the obligations of the fund in conformity with IC 4-4-11 and the investment policies established by the

authority. Interest that accrues from these investments shall be deposited in the fund.
    Sec. 8. Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    Sec. 9. The authority may accept:
        (1) grants;
        (2) loans;
        (3) subsidies;
        (4) matching funds;
        (5) reimbursements;
        (6) appropriations;
        (7) transfers of appropriations;
        (8) bond proceeds from tobacco securitization;
        (9) federal grant money;
        (10) income derived from investments; or
        (11) other things of value from:
            (A) the federal government or state governments;
            (B) any agency of any other state; or
            (C) any institution, person, firm, or corporation, public or private;
for deposit in the fund.
    Sec. 10. The authority may invest and reinvest the fund and the income from money in the fund as follows:
        (1) To make a direct loan to a technology commercialization project to provide seed capital or venture capital. A direct loan under this subdivision may not exceed the lesser of the following:
            (A) Forty percent (40%) of the estimated cost of the initial funding for the project (including development, testing, initial production and marketing, company formation, intellectual property protection and acquisition, and associated working capital for the technology, product, process, or invention).
            (B) Six hundred thousand dollars ($600,000).
        (2) To make direct or co-venture investments in the form of loans or loan guarantees by entering into agreements with one (1) or more professional or accredited investors who have formally agreed to invest at least as much as the authority invests in a technology commercialization project to provide venture capital or seed capital. Not more than one million dollars ($1,000,000) may be loaned or guaranteed by the authority to any single business under this subdivision.

However, an amount not exceeding an additional five hundred thousand dollars ($500,000) may be loaned or guaranteed to the single business if the authority finds, after the initial investment by the authority, that additional investments in the business are necessary to protect or enhance the initial investment of the authority. Each co-venture investment agreement must provide that the authority is to recover its investment before or simultaneously with any distribution to participating professional or accredited investors. The agreement must provide that the authority and participating professional or accredited investors are to share ratably in the profits earned in any form on the co-venture investment.
        (3) To enter into written agreements or with one (1) or more professional investors to establish a pool of funds to be used exclusively as venture capital or seed capital investments. The authority may not invest more than two million dollars ($2,000,000) in a single pool of funds or in affiliated pools of funds. The agreement or contract must provide for the pool of funds to be managed by a professional investor. The authority must specifically find that the professional investor meets the requirements of IC 4-4-10.9-24.5 and is competent to adequately monitor the pool. The authority may, by guideline, limit or decline investment in funds that are not Indiana or Midwest based. The authority may also limit or decline investment in funds that do not commit to investing in Indiana companies. The pool agreement or contract may provide for reimbursement of expenses of, and payment of a fee to, the manager. The agreement or contract may also provide for payment to the manager of a percentage, not to exceed forty percent (40%) (computed on an annual basis), of cash and other property payable to the authority as its pro rata share of distributions to investors in the pool of funds. However, either:
            (A) no amount shall be received by the manager upon sale or other disposition of assets of the pool until recovery by the authority of its investment, and upon liquidation or withdrawal of the authority from the pool of funds, the manager shall be obligated to refund any amount received by it from the manager's percentage if necessary to allow the authority to recover its investment; or
            (B) the terms of payment of cash and other property to the authority must not be less favorable to the authority than

payments to other investors (other than the manager) who are parties to the agreement or contract.
    Sec. 11. A seven (7) member advisory board shall evaluate applications for loans or co-venture investments in the form of loans or guarantees in accordance with the criteria established in this chapter and any guidelines issued by the authority.
    Sec. 12. The advisory board consists of the following:
        (1) Three (3) members of the authority, other than the lieutenant governor or the lieutenant governor's designee, selected by the governor.
        (2) Three (3) members of the twenty-first century research and technology fund board established by IC 4-4-5.1-6, other than the lieutenant governor or the lieutenant governor's designee, selected by the governor.
        (3) The lieutenant governor or the lieutenant governor's designee.
A member selected by the governor under this section serves at the pleasure of the governor.
    Sec. 13. The lieutenant governor or the lieutenant governor's designee shall serve as chair of the advisory board.
    Sec. 14. The advisory board shall make recommendations to the authority, which shall make the final determination regarding investments.
    Sec. 15. The advisory board shall keep the twenty-first century research and technology fund board apprised of its recommendations.
    Sec. 16. The advisory board may request that the authority consult with and hire professionals on its behalf as the authority considers necessary to evaluate applications. The professionals may be compensated from the fund or the applicant, or both.
    Sec. 17. (a) The advisory board is subject to IC 5-14-1.5.
    (b) Subsections (c) through (e) apply to a meeting of the advisory board at which at least four (4) members of the advisory board are physically present at the place where the meeting is conducted.
    (c) A member of the advisory board may participate in a meeting of the advisory board by using a means of communication that permits:
        (1) all other members participating in the meeting; and
        (2) all members of the public physically present at the place where the meeting is conducted;
to simultaneously communicate with each other during the

meeting.
    (d) A member who participates in a meeting under subsection (b) is considered to be present at the meeting.
    (e) The memoranda of the meeting prepared under IC 5-14-1.5-4 must also state the name of each member who:
        (1) was physically present at the place where the meeting was conducted;
        (2) participated in the meeting by using a means of communication described in subsection (c); and
        (3) was absent.
    Sec. 18. Members of the advisory board who have a conflict with respect to a particular application, whether due to a relationship with the business or the professional investor, must abstain from discussion and voting on the application.
    Sec. 19. Members of the advisory board are not entitled to receive per diem. The member is, however, entitled to reimbursement for traveling expenses as provided under IC 4-13-1-4 and other expenses actually incurred in connection with the member's duties as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget
agency.
    Sec. 20. Each co-venture investment loan or guarantee, or pool participation agreement shall provide that the authority must be repaid before or simultaneously with any distribution to participating professional or accredited investors. The authority and participating professional or accredited investors must share ratably in the profits earned in any form on the co-venture investment. Unless the investment is a pooled investment, the agreement must also provide that the professional or accredited investor must share its initial due diligence report on the business and any subsequent analysis of and information received about the business.
    Sec. 21. An application for a direct loan or a co-venture investment loan or guarantee from the fund must include the following:
        (1) Payment of a fee, as determined by the authority.
        (2) A business plan, including a description of the business and its management.
        (3) A statement of the amount, timing, and projected use of the capital required.
        (4) A statement concerning the feasibility of the proposed technology, product, process, or invention, its state of

development, and the likelihood of commercial success (including intellectual property protection and licensing arrangements for technologies).
        (5) A statement of the potential economic impact of the business on Indiana, including the number, location, and types of jobs expected to be created.
        (6) Financial projections.
        (7) A listing of business and legal advisors engaged.
        (8) Any other information that the authority or the advisory board requires.
    Sec. 22. In addition to consideration of the information provided under section 21 of this chapter, the advisory board shall consider the following factors in making its recommendation to the authority:
        (1) Whether the business has a reasonable chance of success.
        (2) Whether the technology, product, process, or invention for which the loan is being made is feasible and has the potential to achieve commercial success.
        (3) Whether the entrepreneur, investors, shareholders, and other founders of the business have already made or are obligated in writing to make a substantial financial and time commitment to the enterprise.
    Sec. 23. After the authority receives the recommendation under section 22 of this chapter, the authority may approve an application for a direct loan or co-venture investment loan or guarantee only if the authority reviews the factors described in section 22 of this chapter, the authority makes findings in the affirmative relative to the factors described in section 22 of this chapter, and the following have occurred:
        (1) The authority determines that there is a reasonable possibility that the authority will recoup its investment, within:
            (A) ten (10) years after making the investment; or
            (B) another period negotiated by the authority;
        through the receipt of principal and interest payments or other distribution of profits or royalties on investments made by the authority.
        (2) Binding commitments have been made to the authority by the enterprise for adequate reporting of financial data to the authority and any participating professional investors. The report must include an annual audit of the books of the enterprise by an independent certified public accountant if

required by the authority. The report must be prepared in accordance with generally accepted accounting principles. The authority and any participating professional or accredited investors shall secure sufficient contractual rights from the business as the authority shall consider prudent to protect the investment of the authority, including, at the discretion of the authority and without limitation, a right of access to financial and other records of the business.
        (3) If the loan is a co-venture investment loan or guarantee, a binding commitment has been made to the business from a participating professional or accredited investor in at least the amount requested by from the authority, and the authority has a written commitment from the participating professional or accredited investor that the authority is to be repaid on its co-venture investment loan or guarantee before or simultaneously with any distribution to participating professional investors.
        (4) The authority has:
            (A) received a copy of the professional or accredited investor's due diligence report on the business, including its analysis of the factors in section 22 of this chapter and this section; and
            (B) determined the report to be adequate.
        (5) The authority must find that the professional or accredited investor meets the respective definition in IC 4-4-10.9-0.5 or IC 4-4-10.9-24.5 and that the professional or accredited investor is competent and adequately prepared to monitor the progress of the business.
        (6) If the co-venture investment is in the form of a loan guarantee, the authority must make the following additional findings:
            (A) Sufficient reserves exist in the fund to support the loan guarantee.
            (B) The professional or accredited investor to whom the guarantee is provided has made a commitment to keep the authority informed on all aspects of the business receiving the investment.
    Sec. 24. The authority, with recommendations from the advisory board, may invest money in the fund in accordance with the investment guidelines established by the authority. IC 4-22-2 does not apply to these guidelines.
    Sec. 25. Applicants that have received:


        (1) prior funding from the twenty-first century research and technology fund; or
        (2) favorable reviews during the peer review process conducted on an application for funding from the twenty-first century research and technology fund;
shall receive preference from the advisory board during the application review process. The authority may, by guideline, require that all applicants meet the requirement of either subdivision (1) or (2).
    Sec. 26. The authority's interest in any single business in the form of a loan or co-venture investment loan or guarantee may not represent more than forty (40%) of the capitalization of the business.
    Sec. 27. Any documentary materials or data made or received by any member, agent, or employee of the authority, to the extent that the material or data consist of trade secrets, commercial information, or financial information regarding:
        (1) the operation of any business conducted by an applicant for, or recipient of, any form of assistance which the authority is empowered to render; or
        (2) the competitive position of the business in a particular field of endeavor;
are confidential. Any discussion or consideration of the trade secrets or commercial or financial information may be held by the advisory board or the authority in executive sessions under IC 5-14-1.5-6.1 if notice of the executive session is properly posted.
    Sec. 28. Proposals for the establishment of pools of funds must:
        (1) be submitted on a form; and
        (2) contain the information;
prescribed by the authority.
    Sec. 29. The authority may not enter into any agreement or contract regarding a pool of funds unless the agreement or contract provides that the pool of funds is to be invested in an enterprise only if the professional investor or manager finds all the following:
        (1) The enterprise has a reasonable chance of success.
        (2) The technology, product, process, or invention for which the investment is being made is feasible and has the potential to achieve commercial success.
        (3) The entrepreneur, investors, shareholders, or founders of the enterprise have made or are obligated to make a substantial commitment of time and funds to the enterprise.
        (4) That there is a reasonable opportunity that it will recoup their investment within ten (10) years after the investment, through the receipt of principal and interest, dividends, capital gains, or other distributions of profit or royalties.
        (5) The enterprise has made binding commitments for adequate reporting of and access to financing data of the enterprise.
    Sec. 30.
The fund and all proceeds of the fund are public property devoted to an essential public and governmental function and purpose and is exempt from all taxes and special assessments, direct or indirect, of the state or a political subdivision of the state. However, this exemption does not exempt an enterprise in which the authority has invested from state taxes or other taxes levied in connection with the manufacture, production, use, or sale of any technologies, products, processes, or inventions that are the subject of an agreement.
SOURCE: IC 4-4-32; (03)HB1006.1.21. -->     SECTION 21. IC 4-4-32 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]:
     Chapter 32. Indiana Growth Fund
    Sec. 1. As used in this chapter, "authority" refers to an authority, separate from the state, established to securitize the payments under the tobacco settlement agreement.
    Sec. 2. As used in this chapter, "fund" refers to the Indiana growth fund established by section 3 of this chapter.
    Sec. 3. The Indiana growth fund is established to provide the necessary money for projects and programs that will energize Indiana economic development.
    Sec. 4. The money from the following sources shall be deposited in the fund:
        (1) The net proceeds of bonds issued to securitize the payments under the tobacco settlement agreement.
        (2) Appropriations, if any, made to the fund by the general assembly.
        (3) Grants, gifts, and donations intended for deposit in the fund.
        (4) Interest that accrues from investment of money in the fund.
    Sec. 5. The fund shall be administered by the authority.
    Sec. 6. The expenses of administering the fund shall be paid from money in the fund. Interest that accrues from these investments shall be deposited in the fund.
    Sec. 7. The authority shall invest the money in the fund not currently needed to meet the obligations of the fund in conformity with the investment policies established by the authority.
    Sec. 8. Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    Sec. 9. Money in the fund may be used to:
        (1) make the distributions authorized by the general assembly; and
        (2) pay the operating expenses of the authority related to its purposes.
    Sec. 10. The authority shall make the following distributions from the fund on the schedule approved by the budget agency:
        (1) In the state fiscal year beginning July 1, 2003, and ending June 30, 2004, the authority shall distribute thirty-six million dollars ($36,000,000) to the Indiana development finance authority (IC 4-4-11-4) for deposit as follows:
            (A) Thirty-two million four hundred thousand dollars ($32,400,000) for deposit in the twenty-first century research and development fund (IC 4-4-5.1-3).
            (B) Three million six hundred thousand dollars ($3,600,000) for deposit in the Indiana venture fund (IC 4-4-11.7-5).
        (2) In the state fiscal year beginning July 1, 2004, and ending June 30, 2005, the authority shall distribute thirty-six million dollars ($36,000,000) to the Indiana development finance authority (IC 4-4-11-4) for deposit as follows:
            (A) Twenty-eight million eight hundred thousand dollars ($28,800,000) for deposit in the twenty-first century research and development fund (IC 4-4-5.1-3).
            (B) Seven million two hundred thousand dollars ($7,200,000) for deposit in the Indiana venture fund (IC 4-4-11.7-5).
        (3) In the state fiscal year beginning July 1, 2005, and ending June 30, 2006, the authority shall distribute thirty-six million dollars ($36,000,000) to the Indiana development finance authority (IC 4-4-11-4) for deposit as follows:
            (A) Twenty-five million two hundred thousand dollars ($25,200,000) for deposit in the twenty-first century research and development fund (IC 4-4-5.1-3).
            (B) Ten million eight hundred thousand dollars ($10,800,000) for deposit in the Indiana venture fund (IC 4-4-11.7-5).
        (4) In the state fiscal year beginning July 1, 2006, and ending June 30, 2007, the authority shall distribute thirty-six million dollars ($36,000,000) to the Indiana development finance authority (IC 4-4-11-4) for deposit as follows:
            (A) Twenty-one million six hundred thousand dollars ($21,600,000) for deposit in the twenty-first century research and development fund (IC 4-4-5.1-3).
            (B) Fourteen million four hundred thousand dollars ($14,400,000) for deposit in the Indiana venture fund (IC 4-4-11.7-5).
        (5) In the state fiscal year beginning July 1, 2007, and ending June 30, 2008, the authority shall distribute thirty-six million dollars ($36,000,000) to the Indiana development finance authority (IC 4-4-11-4) for deposit as follows:
            (A) Eighteen million dollars ($18,000,000) for deposit in the twenty-first century research and development fund (IC 4-4-5.1-3).
            (B) Eighteen million dollars ($18,000,000) for deposit in the Indiana venture fund (IC 4-4-11.7-5).
        (6) In the state fiscal year beginning July 1, 2008, and ending June 30, 2009, the authority shall distribute thirty-six million dollars ($36,000,000) to the Indiana development finance authority (IC 4-4-11-4) for deposit as follows:
            (A) Eighteen million dollars ($18,000,000) for deposit in the twenty-first century research and development fund (IC 4-4-5.1-3).
            (B) Eighteen million dollars ($18,000,000) for deposit in the Indiana venture fund (IC 4-4-11.7-5).
        (7) In the state fiscal year beginning July 1, 2009, and ending June 30, 2010, the authority shall distribute thirty-six million dollars ($36,000,000) to the Indiana development finance authority (IC 4-4-11-4) for deposit as follows:
            (A) Eighteen million dollars ($18,000,000) for deposit in the twenty-first century research and development fund (IC 4-4-5.1-3).
            (B) Eighteen million dollars ($18,000,000) for deposit in the Indiana venture fund (IC 4-4-11.7-5).
        (8) In the state fiscal year beginning July 1, 2010, and ending June 30, 2011, the authority shall distribute thirty-six million dollars ($36,000,000) to the Indiana development finance authority (IC 4-4-11-4) for deposit as follows:
            (A) Eighteen million dollars ($18,000,000) for deposit in

the twenty-first century research and development fund (IC 4-4-5.1-3).
            (B) Eighteen million dollars ($18,000,000) for deposit in the Indiana venture fund (IC 4-4-11.7-5).
        (9) In the state fiscal year beginning July 1, 2011, and ending June 30, 2012, the authority shall distribute thirty-six million dollars ($36,000,000) to the Indiana development finance authority (IC 4-4-11-4) for deposit as follows:
            (A) Eighteen million dollars ($18,000,000) for deposit in the twenty-first century research and development fund (IC 4-4-5.1-3).
            (B) Eighteen million dollars ($18,000,000) for deposit in the Indiana venture fund (IC 4-4-11.7-5).
        (10) In the state fiscal year beginning July 1, 2012, and ending June 30, 2013, the authority shall distribute thirty-six million dollars ($36,000,000) to the Indiana development finance authority (IC 4-4-11-4) for deposit as follows:
            (A) Eighteen million dollars ($18,000,000) for deposit in the twenty-first century research and development fund (IC 4-4-5.1-3).
            (B) Eighteen million dollars ($18,000,000) for deposit in the Indiana venture fund (IC 4-4-11.7-5).
    Sec. 11. If there is insufficient money in the fund for the authority to make the total amount of transfers required by law for any fiscal year, the authority shall make transfers for that fiscal year as directed by the budget agency after review by the budget committee.
    Sec. 12. The amounts distributed under this chapter to the Indiana twenty-first century research and technology fund (IC 4-4-5.1-6) shall be used for the purposes of that fund under IC 4-4-5.1.
    Sec. 13. The amounts distributed under this chapter to the Indiana venture fund (IC 4-4-11.7-5) shall be used for the purposes of that fund under IC 4-4-11.7.
    Sec. 14. This chapter expires June 30, 2013.