Introduced Version
HOUSE BILL No. 1007
_____
DIGEST OF INTRODUCED BILL
Citations Affected:
IC 4-4-34
; IC 4-12; IC 36-7-32.
Synopsis: Technology centers and parks. Establishes the technology
development grant fund and program. Provides appropriations for the
technology development grant program from securitized payments
received under the tobacco master settlement agreement. Transfers the
Indiana economic development partnership fund and technology center
program from the budget agency to the development finance authority.
Removes limitations on the establishment of certified technology parks.
Effective: July 1, 2003.
Hasler
January 15, 2003, read first time and referred to Committee on Technology, Research and
Development.
Introduced
First Regular Session 113th General Assembly (2003)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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NEW will appear in that style type in the introductory clause of each SECTION that adds
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HOUSE BILL No. 1007
A BILL FOR AN ACT to amend the Indiana Code concerning
economic development and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-4-34; (03)IN1007.1.1. -->
SECTION 1.
IC 4-4-34
IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]:
Chapter 34. Energize Indiana Technology Grant Fund
Sec. 1. As used in this chapter, "authority" refers to an
authority, separate from the state, established to securitize
payments received under the master settlement agreement (as
defined in
IC 24-3-3-6
).
Sec. 2. As used by this chapter, "fund" refers to the technology
development grant fund established by
IC 4-12-11-8.
Sec. 3. The authority shall annually distribute four million
dollars ($4,000,000) to the treasurer of state for deposit in the fund
on the schedule approved by the budget agency.
Sec. 4. If the authority has insufficient money 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. 5. Four million dollars ($4,000,000) is annually
appropriated from money distributed under section 3 of this
chapter to the fund, in addition to any other amount appropriated,
for use by the department of commerce for the purposes of
IC 4-12-11.
Sec. 6. This chapter expires July 1, 2013.
SOURCE: IC 4-12-10-0.5; (03)IN1007.1.2. -->
SECTION 2.
IC 4-12-10-0.5
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 4-12-10-3; (03)IN1007.1.3. -->
SECTION 3.
IC 4-12-10-3
, AS ADDED BY P.L.26-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 3. (a) The Indiana economic development
partnership fund is established to provide grants for economic
development initiatives that support the following:
(1) The establishment of regional technology centers for the
creation of high technology companies and for the support of
workforce development.
(2) The providing of leadership and technical support necessary
for the centers' start-up operations and long term success.
(3) The expansion of the Purdue Technical Assistance Program
in ten (10) geographic regions of Indiana.
(4) The creation of a rural/community economic development
regional outreach program by Purdue University.
(5) The expansion of workforce development for high technology
business development through the centers.
(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.
(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
the investment policies 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 4-12-10-4; (03)IN1007.1.4. -->
SECTION 4.
IC 4-12-10-4
, AS ADDED BY P.L.26-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 4. (a) The
budget agency, authority, after review
by the budget committee, shall do the following:
(1) Review, prioritize, and approve or disapprove proposals for
centers.
(2) Create detailed application procedures and selection criteria
for center proposals. These criteria may include the following:
(A) Geographical proximity to and partnership agreement with
an Indiana public or private university.
(B) Proposed local contributions to the center.
(C) Minimum standards and features for the physical facilities
of a center, including telecommunications infrastructure.
(D) The minimum support services, both technical and
financial, that must be provided by the centers.
(E) Guidelines for selecting entities that may participate in the
center.
(3) Develop performance measures and reporting requirements
for the centers.
(4) Monitor the effectiveness of each center and report its findings
to the governor and the budget committee before October 1 of
each even-numbered year.
(5) Contract with Purdue University for any staff support
necessary for the budget agency to carry out this chapter.
(6) Approve a regional technology center only if the center agrees
to do all of the following:
(A) Nurture the development and expansion of high
technology ventures that have the potential to become high
growth businesses.
(B) Increase high technology employment in Indiana.
(C) Stimulate the flow of new venture capital necessary to
support the growth of high technology businesses in Indiana.
(D) Expand workforce education and training for highly
skilled, high technology jobs.
(E) Affiliate with an Indiana public or private university and
be located in close proximity to a university campus.
(F) Be a party to a written agreement among:
(i) the affiliated university;
(ii) the city or town in which the proposed center is located,
or the county in which the proposed center is located if the
center is not located in a city or town;
(iii) Purdue University, for technical and personnel training
support; and
(iv) any other affiliated entities;
that outlines the responsibilities of each party.
(G) Establish a debt free physical structure designed to
accommodate research and technology ventures.
(H) Provide support services, including business planning,
management recruitment, legal services, securing of seed
capital marketing, and mentor identification.
(I) Establish a commitment of local resources that is at least
equal to the money provided from the fund for the physical
facilities of the center.
(b) The budget agency authority may not approve more than five
(5) regional technology centers in any biennium.
SOURCE: IC 4-12-10-6; (03)IN1007.1.5. -->
SECTION 5.
IC 4-12-10-6
, AS ADDED BY P.L.26-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 6. (a) If a center is approved by the budget agency,
authority, the budget agency authority shall allocate from available
appropriations the money authorized to:
(1) subsidize construction or rehabilitation of the physical
facilities; and
(2) cover operating costs, not to exceed two hundred fifty
thousand dollars ($250,000) each year, until the center is
self-sustaining or has identified another source of operating
money or the amount appropriated for this purpose is exhausted.
(b) Operating costs may not be supported by the fund for any center
for more than four (4) years.
SOURCE: IC 4-12-10-7; (03)IN1007.1.6. -->
SECTION 6.
IC 4-12-10-7
, AS ADDED BY P.L.26-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 7. (a) As Indiana's land grant university, Purdue
University has developed the expertise to provide leadership,
assistance, technical support, and personnel training support for
developing centers. This service shall be provided to each center during
the start-up phases for the center, after which the local personnel shall
provide the services to local companies, with minimal continued
technical support from Purdue University.
(b) Purdue University shall do the following:
(1) Assist center personnel in establishing key components and
methodology to identify, prepare, develop, and incubate
technology based companies.
(2) Assist local communities in planning, feasibility studies, and
proposal development before the submission of a proposal to the
budget agency. authority.
SOURCE: IC 4-12-11; (03)IN1007.1.7. -->
SECTION 7.
IC 4-12-11
IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]:
Chapter 11. Technology Development Grant Fund
Sec. 1. As used in this chapter, "department" refers to the
department of commerce established by
IC 4-4-3-2.
Sec. 2. As used in this chapter, "fund" refers to the technology
development grant fund established by section 8 of this chapter.
Sec. 3. As used in this chapter, "political subdivision" has the
meaning set forth in
IC 36-1-2-13.
Sec. 4. As used in this chapter, "redevelopment commission"
refers to a redevelopment commission established under
IC 36-7-14-3
or a commission (as defined in
IC 36-7-15.1-3
) that
establishes a technology park.
Sec. 5. As used in this chapter, "technology park" refers to a
certified technology park established under
IC 36-7-32.
Sec. 6. As used in this chapter, "targeted employment" means
employment in any of the following business activities:
(1) Advanced manufacturing, including the following:
(A) Automotive and electronics.
(B) Aerospace technology.
(C) Robotics.
(D) Engineering design technology.
(2) Life sciences, including the following:
(A) Orthopedics or medical devices.
(B) Biomedical research or development.
(C) Pharmaceutical manufacturing.
(D) Agribusiness.
(E) Nanotechnology or molecular manufacturing.
(3) Information technology, including the following:
(A) Informatics.
(B) Certified network administration.
(C) Software development.
(D) Fiber optics.
(4) Twenty-first century logistics, including the following:
(A) High technology distribution.
(B) Efficient and effective flow and storage of goods,
services, or information.
(C) Intermodal ports.
Sec. 7. As used in this chapter, "technology product" means a
product that involves high technology activity or otherwise
involves targeted employment.
Sec. 8. The technology development grant fund is established to
provide the necessary money for grants to redevelopment
commissions under this chapter and the administration of this
program.
Sec. 9. The fund shall be administered by the department.
Sec. 10. 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. 11. The treasurer of state 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 are invested.
Sec. 12. Money in the fund at the end of a state fiscal year does
not revert to the state general fund.
Sec. 13. The department shall establish a grant application
procedure for redevelopment commissions.
Sec. 14. To qualify for a grant under this chapter, a
redevelopment commission must:
(1) submit an application in the form prescribed by the
department;
(2) demonstrate that:
(A) the redevelopment commission has established a
technology park; and
(B) the grant being applied for under this chapter will
assist the redevelopment commission to accomplish the
goals of the technology park under
IC 36-7-32
; and
(3) provide the other information required by the department.
Sec. 15. The department shall provide grants on a competitive
basis from the fund to redevelopment commissions that apply for
a grant under this chapter. The department may select and fund
part or all of an application request that:
(1) is submitted during an application period; or
(2) was submitted in a prior application period but not fully
funded in that application period.
Sec. 16. The total of all grants provided under this chapter for
a technology park may not exceed the following:
(1) Three million dollars ($3,000,000) for capital expenditures.
(2) One million dollars ($1,000,000) for operating
expenditures, with not more than two hundred fifty thousand
dollars ($250,000) being given in any one (1) fiscal year.
Sec. 17. A capital expenditure grant under this chapter may
require that up to fifty percent (50%) of the total capital costs of
the project being funded by the grant be matched from other
sources.
Sec. 18. The department may, under rules established by the
department of local government finance and the procedures
established by the department, award grants from the fund to one
(1) or more political subdivisions to reimburse the political
subdivisions for ad valorem property taxes allocated to an
allocation area as a result of a resolution adopted under
IC 36-7-32-15.
SOURCE: IC 36-7-32-11; (03)IN1007.1.8. -->
SECTION 8.
IC 36-7-32-11
, AS ADDED BY P.L.192-2002(ss),
SECTION 187, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 11.(a) After receipt of an
application under section 10 of this chapter, and subject to subsection
(b), the department of commerce may designate a certified technology
park if the department determines that the application demonstrates a
firm commitment from at least one (1) business engaged in a high
technology activity creating a significant number of jobs and satisfies
one (1) or more of the following additional criteria:
(1) A demonstration of significant support from an institution of
higher education or a private research based institute located
within, or in the vicinity of, the proposed certified technology
park, as evidenced by the following criteria:
(A) Grants of preferences for access to and commercialization
of intellectual property.
(B) Access to laboratory and other facilities owned by or under
the control of the institution of higher education or private
research based institute.
(C) Donations of services.
(D) Access to telecommunications facilities and other
infrastructure.
(E) Financial commitments.
(F) Access to faculty, staff, and students.
(G) Opportunities for adjunct faculty and other types of staff
arrangements or affiliations.
(H) Other criteria considered appropriate by the department.
(2) A demonstration of a significant commitment by the
institution of higher education or private research based institute
to the commercialization of research produced at the certified
technology park, as evidenced by the intellectual property and, if
applicable, tenure policies that reward faculty and staff for
commercialization and collaboration with private businesses.
(3) A demonstration that the proposed certified technology park
will be developed to take advantage of the unique characteristics
and specialties offered by the public and private resources
available in the area in which the proposed certified technology
park will be located.
(4) The existence of or proposed development of a business
incubator within the proposed certified technology park that
exhibits the following types of resources and organization:
(A) Significant financial and other types of support from the
public or private resources in the area in which the proposed
certified technology park will be located.
(B) A business plan exhibiting the economic utilization and
availability of resources and a likelihood of successful
development of technologies and research into viable business
enterprises.
(C) A commitment to the employment of a qualified full-time
manager to supervise the development and operation of the
business incubator.
(5) The existence of a business plan for the proposed certified
technology park that identifies its objectives in a clearly focused
and measurable fashion and that addresses the following matters:
(A) A commitment to new business formation.
(B) The clustering of businesses, technology, and research.
(C) The opportunity for and costs of development of properties
under common ownership or control.
(D) The availability of and method proposed for development
of infrastructure and other improvements, including
telecommunications technology, necessary for the
development of the proposed certified technology park.
(E) Assumptions of costs and revenues related to the
development of the proposed certified technology park.
(6) A demonstrable and satisfactory assurance that the proposed
certified technology park can be developed to principally contain
property that is primarily used for, or will be primarily used for,
a high technology activity or a business incubator.
(b) The department of commerce may not approve an application
that would result in a substantial reduction or cessation of operations
in another location in Indiana in order to relocate them within the
certified technology park.
SOURCE: IC 36-7-32-22; (03)IN1007.1.9. -->
SECTION 9.
IC 36-7-32-22
, AS ADDED BY P.L.192-2002(ss),
SECTION 187, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 22.
(a) The treasurer of state shall
establish an incremental tax financing fund for each certified
technology park designated under this chapter. The fund shall be
administered by the treasurer of state. Money in the fund does not
revert to the state general fund at the end of a state fiscal year.
(b) Subject to subsection (c), the following amounts shall be
deposited during each state fiscal year in the incremental tax financing
fund established for a certified technology park under subsection (a):
(1) The aggregate amount of state gross retail and use taxes that
are remitted under IC 6-2.5 by businesses operating in the
certified technology park, until the amount of state gross retail
and use taxes deposited equals the gross retail incremental
amount for the certified technology park.
(2) The aggregate amount of the following taxes paid by
employees employed in the certified technology park with respect
to wages earned for work in the certified technology park, until
the amount deposited equals the income tax incremental amount:
(A) The adjusted gross income tax.
(B) The county adjusted gross income tax.
(C) The county option income tax.
(D) The county economic development income tax.
(c) Not more than a total of five million dollars ($5,000,000) may
be deposited in a particular incremental tax financing fund for a
certified technology park over the life of the certified technology park.
(d) (c) On or before the twentieth day of each month, all amounts
held in the incremental tax financing fund established for a certified
technology park shall be distributed to the redevelopment commission
for deposit in the certified technology park fund established under
section 23 of this chapter.