AN ACT to amend the Indiana Code concerning economic development and to make an
appropriation.
land, interests in land, site improvements, infrastructure improvements
(including information and high technology infrastructure (as defined
in IC 4-4-8-1)), IC 5-28-9-4)), buildings, or structures, rehabilitation,
renovation, and enlargement of buildings and structures, machinery,
equipment, furnishings, or facilities (or any combination of these),
comprising or being functionally related and subordinate to any of the
following:
(1) A pollution control facility.
(2) A manufacturing enterprise.
(3) A business service enterprise involved in:
(A) computer and data processing services; or
(B) commercial testing services.
(4) A business enterprise, the primary purpose of which is the
operation of an education and permanent marketing center for
manufacturers and distributors of robotic and flexible automation
equipment.
(5) Any other business enterprise, if the use of the guaranty
program creates a reasonable probability that the effect on Indiana
employment will be creation or retention of at least fifty (50) jobs.
(6) An agricultural enterprise in which:
(A) the enterprise operates pursuant to a producer or growout
agreement; and
(B) the output of the enterprise is processed predominantly in
Indiana.
(7) A business enterprise that is required by a state, federal, or
local regulatory agency to make capital expenditures to remedy a
violation of a state or federal law or a local ordinance.
(8) A recycling market development project.
(9) A high growth company with high skilled jobs (as defined in
IC 4-4-10.9-9.5).
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16. (a) Grants to or
on behalf of political subdivisions for qualified economic growth
initiatives shall be made by the department of commerce created
Indiana economic development corporation established by
IC 4-4-3-2. IC 5-28-3-1.
(b) Each grant shall be made pursuant to under a grant agreement
by and between:
(1) the department of commerce; Indiana economic
development corporation; and
(2) the political subdivision proposing the economic growth
initiative or the person (as defined in IC 36-1-2-12) acting on
behalf of the political subdivision.
(c) Each grant agreement shall describe in detail:
(1) the qualified economic growth initiative;
(2) the financing plan by the political subdivision proposing the
economic growth initiative or by the person acting on behalf of
the political subdivision; and
(3) the estimated cost of the economic growth initiative and all
sources of money for the initiative.
(d) The department of commerce Indiana economic development
corporation may not execute and deliver a grant agreement under this
section, and no money may be disbursed from the economic growth
initiatives account, until the grant agreement has been:
(1) reviewed by the budget committee established by IC 4-12-1-3;
and
(2) approved by the budget agency established by IC 4-12-1-3.
(e) In addition to the requirements of subsection (d), no money may
be disbursed for a grant from the economic growth initiatives account
(1) before March 1, 1994; or
(2) after February 28, 1994, without an appropriation made by the
general assembly for that purpose, unless the grant is for a
qualified economic growth initiative for a government building
that is to be occupied by an agency of the federal government.
(f) Not more than twenty-five percent (25%) of any grant may be
used for training or retraining employees whose jobs will be created or
retained as a result of the economic growth initiative.
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, the budget agency, and the budget committee
before October 1 of each even-numbered year.
(5) 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 department of commerce Indiana economic development
corporation may not approve more than five (5) regional technology
centers in any biennium.
(c) The budget agency shall contract with Purdue University:
(1) for any support staff necessary for the budget agency to
provide grants under section 3(a)(3) and 3(a)(4) of this chapter;
and
(2) to provide services under section 7 of this chapter.
department; corporation;
(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 in accomplishing the goals of
the technology park under IC 36-7-32; and
(3) provide the other information required by the department.
corporation.
services, supplies, materials, or equipment by the state.
(b) With the prior approval of the budget agency, payment may be
made in advance for any of the following:
(1) War surplus property.
(2) Property purchased or leased from the United States
government or its agencies.
(3) Dues and subscriptions.
(4) License fees.
(5) Insurance premiums.
(6) Utility connection charges.
(7) Federal grant programs where advance funding is not
prohibited and, except as provided in subsection (i), the
contracting party posts sufficient security to cover the amount
advanced.
(8) Grants of state funds authorized by statute.
(9) Employee expense vouchers.
(10) Beneficiary payments to the administrator of a program of
self-insurance.
(11) Services, supplies, materials, or equipment to be received
from an agency or from a body corporate and politic.
(12) Expenses for the operation of offices that represent the state
under contracts with the department of commerce Indiana
economic development corporation and that are located outside
Indiana.
(13) Services, supplies, materials, or equipment to be used for
more than one (1) year under a discounted contractual
arrangement funded through a designated leasing entity.
(14) Maintenance of equipment and maintenance of software not
exceeding an annual amount of one thousand five hundred dollars
($1,500) for each piece of equipment or each software license.
(15) Exhibits, artifacts, specimens, or other unique items of
cultural or historical value or interest purchased by the state
museum.
(c) Any state agency and any state college or university supported
in whole or in part by state funds may make advance payments to its
employees for duly accountable expenses exceeding ten dollars ($10)
incurred through travel approved by the employee's respective agency
director in the case of a state agency and by a duly authorized person
in the case of any such state college or university.
(d) The auditor of state may, with the approval of the budget agency
and of the commissioner of the Indiana department of administration:
(1) appoint a special disbursing officer for any state agency or
group of agencies where it is necessary or expedient that a special
record be kept of a particular class of disbursements or where
disbursements are made from a special fund; and
(2) approve advances to the special disbursing officer or officers
from any available appropriation for the purpose.
(e) The auditor of state shall issue the auditor's warrant to the
special disbursing officer to be disbursed by the disbursing officer as
provided in this section. Special disbursing officers shall in no event
make disbursements or payments for supplies or current operating
expenses of any agency or for contractual services or equipment not
purchased or contracted for in accordance with this chapter and
IC 5-22. No special disbursing officer shall be appointed and no money
shall be advanced until procedures covering the operations of special
disbursing officers have been adopted by the Indiana department of
administration and approved by the budget agency. These procedures
must include the following provisions:
(1) Provisions establishing the authorized levels of special
disbursing officer accounts and establishing the maximum
amount which may be expended on a single purchase from special
disbursing officer funds without prior approval.
(2) Provisions requiring that each time a special disbursing officer
makes an accounting to the auditor of state of the expenditure of
the advanced funds, the auditor of state shall request that the
Indiana department of administration review the accounting for
compliance with IC 5-22.
(3) A provision that, unless otherwise approved by the
commissioner of the Indiana department of administration, the
special disbursing officer must be the same individual as the
procurements agent under IC 4-13-1.3-5.
(4) A provision that each disbursing officer be trained by the
Indiana department of administration in the proper handling of
money advanced to the officer under this section.
(f) The commissioner of the Indiana department of administration
shall cite in a letter to the special disbursing officer the exact purpose
or purposes for which the money advanced may be expended.
(g) A special disbursing officer may issue a check to a person
without requiring a certification under IC 5-11-10-1 if the officer:
(1) is authorized to make the disbursement; and
(2) complies with procedures adopted by the state board of
accounts to govern the issuance of checks under this subsection.
(h) A special disbursing officer is not personally liable for a check
issued under subsection (g) if:
entitled to the following:
(1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
(2) Reimbursement for traveling expenses and other expenses
actually incurred in connection with the member's duties as
provided under IC 4-13-1-4 and in the state travel policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
(c) Each legislative member of the commission is entitled to receive
the same per diem, mileage, and travel allowances established by the
legislative council and paid to members of the general assembly
serving on interim study committees. The allowances specified in this
subsection shall be paid by the legislative services agency from the
amounts appropriated for that purpose.
(d) A member of the commission who is a state employee but who
is not a member of the general assembly is not entitled to any of the
following:
(1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
(2) Reimbursement for traveling expenses as provided under
IC 4-13-1-4.
(3) Other expenses actually incurred in connection with the
member's duties.
(e) The commission shall meet at least four (4) times each year and
at other times as the chairman deems considers necessary.
(f) The duties of the commission shall include but not be limited to
the following:
(1) Identify minority and women's business enterprises in the
state.
(2) Assess the needs of minority and women's business
enterprises.
(3) Initiate aggressive programs to assist minority and women's
business enterprises in obtaining state contracts.
(4) Give special publicity to procurement, bidding, and qualifying
procedures.
(5) Include minority and women's business enterprises on
solicitation mailing lists.
(6) Define the duties, goals, and objectives of the deputy
commissioner of the department as created under this chapter to
assure compliance by all state agencies, separate bodies corporate
and politic, and state educational institutions with state and
federal legislation and policy concerning the awarding of
contracts to minority and women's business enterprises.
(7) Establish annual goals:
at least one million dollars ($1,000,000).
(d) The division shall compute a preference under this section in the
same manner that a preference is computed under IC 5-22-15.
(e) Notwithstanding subsection (c), the division shall award a
contract to the lowest responsive and responsible contractor, regardless
of the preference provided in this section, if:
(1) the contractor is an Indiana contractor; or
(2) the contractor is a contractor from a state bordering Indiana
and the contractor's home state does not provide a preference to
the home state's contractors more favorable than is provided by
Indiana law to Indiana contractors.
(f) A contractor that wants to claim a preference provided under this
section must do all of the following:
(1) State in the contractor's bid that the contractor claims the
preference provided by this section.
(2) Provide the following information to the department:
(A) The location of the contractor's principal place of business.
If the contractor claims the preference as an Indiana business
described in subsection (a)(1), a statement explaining the
reasons the contractor considers the location named as the
contractor's principal place of business.
(B) The amount of the contractor's total payroll and the
amount of the contractor's payroll paid to Indiana residents.
(C) The number of the contractor's employees and the number
of the contractor's employees who are Indiana residents.
(D) If the contractor claims the preference as an Indiana
business described in subsection (a)(4), a description of the
capital investments made in Indiana and a statement of the
amount of those capital investments.
(E) If the contractor claims the preference as an Indiana
business described in subsection (a)(5), a description of the
substantial positive economic impact the contractor has on
Indiana.
(g) This section expires July 1, 2009.
commission.
(4) A personnel action, except review of a personnel action by the
state employees appeals commission under IC 4-15-2 or a
personnel action that is not covered by IC 4-15-2 but may be
taken only for cause.
(5) A resolution, directive, or other action of any agency that
relates solely to the internal policy, organization, or procedure of
that agency or another agency and is not a licensing or
enforcement action. Actions to which this exemption applies
include the statutory obligations of an agency to approve or ratify
an action of another agency.
(6) An agency action related to an offender within the jurisdiction
of the department of correction.
(7) A decision of the department of commerce, Indiana economic
development corporation, the department of environmental
management, the enterprise zone board, the tourist information
and grant fund review committee, the Indiana development
finance authority, the Indiana business modernization and
technology corporation, the corporation for innovation
development, the Indiana small business development
corporation, or the lieutenant governor that concerns a grant, loan,
bond, tax incentive, or financial guarantee.
(8) A decision to issue or not issue a complaint, summons, or
similar accusation.
(9) A decision to initiate or not initiate an inspection,
investigation, or other similar inquiry that will be conducted by
the agency, another agency, a political subdivision, including a
prosecuting attorney, a court, or another person.
(10) A decision concerning the conduct of an inspection,
investigation, or other similar inquiry by an agency.
(11) The acquisition, leasing, or disposition of property or
procurement of goods or services by contract.
(12) Determinations of the department of workforce development
under IC 22-4-18-1(g)(1), IC 22-4-40, or IC 22-4-41.
(13) A decision under IC 9-30-12 of the bureau of motor vehicles
to suspend or revoke the a driver's license, a driver's permit, a
vehicle title, or a vehicle registration of an individual who
presents a dishonored check.
(14) An action of the department of financial institutions under
IC 28-1-3.1 or a decision of the department of financial
institutions to act under IC 28-1-3.1.
(15) A determination by the NVRA official under IC 3-7-11
concerning an alleged violation of the National Voter Registration
Act of 1993 (42 U.S.C. 1973gg) or IC 3-7.
(16) Imposition of a civil penalty under IC 4-20.5-6-8 if the rules
of the Indiana department of administration provide an
administrative appeals process.
before the proposed date of preliminary adoption of the proposed
rule.
deadline required by federal law, provided:
(A) the variance procedures are included in the rules; and
(B) permits or licenses granted during the period the
emergency rule is in effect are reviewed after the emergency
rule expires.
(15) An emergency rule adopted by the Indiana election
commission under IC 3-6-4.1-14.
(16) An emergency rule adopted by the department of natural
resources under IC 14-10-2-5.
(17) An emergency rule adopted by the Indiana gaming
commission under IC 4-33-4-2, IC 4-33-4-3, or IC 4-33-4-14.
(18) An emergency rule adopted by the alcohol and tobacco
commission under IC 7.1-3-17.5, IC 7.1-3-17.7, or
IC 7.1-3-20-24.4.
(19) An emergency rule adopted by the department of financial
institutions under IC 28-15-11.
(20) An emergency rule adopted by the office of the secretary of
family and social services under IC 12-8-1-12.
(21) An emergency rule adopted by the office of the children's
health insurance program under IC 12-17.6-2-11.
(22) An emergency rule adopted by the office of Medicaid policy
and planning under IC 12-15-41-15.
(23) An emergency rule adopted by the Indiana state board of
animal health under IC 15-2.1-18-21.
(24) An emergency rule adopted by the board of directors of the
Indiana education savings authority under IC 21-9-4-7.
(25) An emergency rule adopted by the Indiana board of tax
review under IC 6-1.1-4-34.
(26) An emergency rule adopted by the department of local
government finance under IC 6-1.1-4-33.
(27) An emergency rule adopted by the boiler and pressure vessel
rules board under IC 22-13-2-8(c).
(28) An emergency rule adopted by the Indiana board of tax
review under IC 6-1.1-4-37(l) or an emergency rule adopted by
the department of local government finance under
IC 6-1.1-4-36(j) or IC 6-1.1-22.5-20.
(29) An emergency rule adopted by the board of the Indiana
economic development corporation under IC 5-28-5-8.
(b) The following do not apply to rules described in subsection (a):
(1) Sections 24 through 36 of this chapter.
(2) IC 13-14-9.
(c) After a rule described in subsection (a) has been adopted by the
agency, the agency shall submit the rule to the publisher for the
assignment of a document control number. The agency shall submit the
rule in the form required by section 20 of this chapter and with the
documents required by section 21 of this chapter. The publisher shall
determine the number of copies of the rule and other documents to be
submitted under this subsection.
(d) After the document control number has been assigned, the
agency shall submit the rule to the secretary of state for filing. The
agency shall submit the rule in the form required by section 20 of this
chapter and with the documents required by section 21 of this chapter.
The secretary of state shall determine the number of copies of the rule
and other documents to be submitted under this subsection.
(e) Subject to section 39 of this chapter, the secretary of state shall:
(1) accept the rule for filing; and
(2) file stamp and indicate the date and time that the rule is
accepted on every duplicate original copy submitted.
(f) A rule described in subsection (a) takes effect on the latest of the
following dates:
(1) The effective date of the statute delegating authority to the
agency to adopt the rule.
(2) The date and time that the rule is accepted for filing under
subsection (e).
(3) The effective date stated by the adopting agency in the rule.
(4) The date of compliance with every requirement established by
law as a prerequisite to the adoption or effectiveness of the rule.
(g) Subject to subsection (h), IC 14-10-2-5, IC 14-22-2-6,
IC 22-8-1.1-16.1, and IC 22-13-2-8(c), and except as provided in
subsection subsections (j) and (k), a rule adopted under this section
expires not later than ninety (90) days after the rule is accepted for
filing under subsection (e). Except for a rule adopted under subsection
(a)(14), (a)(25), (a)(26), or (a)(28), the rule may be extended by
adopting another rule under this section, but only for one (1) extension
period. The extension period for a rule adopted under subsection
(a)(29) may not exceed the period for which the original rule was
in effect. A rule adopted under subsection (a)(14) may be extended for
two (2) extension periods. Subject to subsection (j), a rule adopted
under subsection (a)(25), (a)(26), or (a)(28) may be extended for an
unlimited number of extension periods. Except for a rule adopted under
subsection (a)(14), for a rule adopted under this section to be effective
after one (1) extension period, the rule must be adopted under:
(1) sections 24 through 36 of this chapter; or
(2) IC 13-14-9;
the promotion and operation of horse racing in Indiana:
(A) To one (1) or more breed development funds established
by the Indiana horse racing commission under IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse
racing commission under IC 4-31. The commission may make
a grant under this clause only for purses, promotions, and
routine operations of the racetrack. No grants shall be made
for long term capital investment or construction, and no grants
shall be made before the racetrack becomes operational and is
offering a racing schedule.
(c) With respect to tax revenue collected from a riverboat located in
a historic hotel district, the treasurer of state shall quarterly pay the
following amounts:
(1) Twenty-five percent (25%) of the admissions tax collected
during the quarter shall be paid to the county treasurer of the
county in which the riverboat is docked. The county treasurer
shall distribute the money received under this subdivision as
follows:
(A) Twenty percent (20%) shall be quarterly distributed to the
county treasurer of a county having a population of more than
thirty-nine thousand six hundred (39,600) but less than forty
thousand (40,000) for appropriation by the county fiscal body
after receiving a recommendation from the county executive.
The county fiscal body for the receiving county shall provide
for the distribution of the money received under this clause to
one (1) or more taxing units (as defined in IC 6-1.1-1-21) in
the county under a formula established by the county fiscal
body after receiving a recommendation from the county
executive.
(B) Twenty percent (20%) shall be quarterly distributed to the
county treasurer of a county having a population of more than
ten thousand seven hundred (10,700) but less than twelve
thousand (12,000) for appropriation by the county fiscal body.
The county fiscal body for the receiving county shall provide
for the distribution of the money received under this clause to
one (1) or more taxing units (as defined in IC 6-1.1-1-21) in
the county under a formula established by the county fiscal
body after receiving a recommendation from the county
executive.
(C) Sixty percent (60%) shall be retained by the county where
the riverboat is docked for appropriation by the county fiscal
body after receiving a recommendation from the county
executive. The county fiscal body shall provide for the
distribution of part or all of the money received under this
clause to the following under a formula established by the
county fiscal body:
(i) A town having a population of more than two thousand
two hundred (2,200) but less than three thousand five
hundred (3,500) located in a county having a population of
more than nineteen thousand three hundred (19,300) but less
than twenty thousand (20,000).
(ii) A town having a population of more than three thousand
five hundred (3,500) located in a county having a population
of more than nineteen thousand three hundred (19,300) but
less than twenty thousand (20,000).
(2) Sixteen percent (16%) of the admissions tax collected during
the quarter shall be paid in equal amounts to each town that:
(A) is located in the county in which the riverboat docks; and
(B) contains a historic hotel.
The town council shall appropriate a part of the money received
by the town under this subdivision to the budget of the town's
tourism commission.
(3) Nine percent (9%) of the admissions tax collected during the
quarter shall be paid to the historic hotel preservation commission
established under IC 36-7-11.5.
(4) Twenty-five percent (25%) of the admissions tax collected
during the quarter shall be paid to the West Baden Springs
historic hotel preservation and maintenance fund established by
IC 36-7-11.5-11(b).
(5) Twenty-five percent (25%) of the admissions tax collected
during the quarter shall be paid to the department of commerce
Indiana economic development corporation to be used by the
department corporation for the development and implementation
of a regional economic development strategy to assist the
residents of the county in which the riverboat is located and
residents of contiguous counties in improving their quality of life
and to help promote successful and sustainable communities. The
regional economic development strategy must include goals
concerning the following issues:
(A) Job creation and retention.
(B) Infrastructure, including water, wastewater, and storm
water infrastructure needs.
(C) Housing.
(D) Workforce training.
revenue determined under this subsection to each entity subject to this
subsection.
(j) This subsection does not apply to an entity receiving money
under subsection (c). For state fiscal years beginning after June 30,
2002, the total amount of money distributed to an entity under this
section during a state fiscal year may not exceed the entity's base year
revenue as determined under subsection (h) or (i). If the treasurer of
state determines that the total amount of money distributed to an entity
under this section during a state fiscal year is less than the entity's base
year revenue, the treasurer of state shall make a supplemental
distribution to the entity under IC 4-33-13-5(g).
(k) This subsection does not apply to an entity receiving money
under subsection (c). For state fiscal years beginning after June 30,
2002, the treasurer of state shall pay that part of the riverboat
admissions taxes that:
(1) exceed a particular entity's base year revenue; and
(2) would otherwise be due to the entity under this section;
to the property tax replacement fund instead of to the entity.
or a physician;
(E) retail sales, except when the primary purpose of the
business is the development or support of electronic commerce
using the Internet; or
(F) gas and oil exploration.
A company that meets the definition of a high growth company under
this subsection shall be considered to meet the definition even if
affiliated with one (1) or more other companies that do not meet the
definition and regardless of whether any of the affiliated companies is
engaged in a business involving the matters described in subdivision
(3).
(b) As used in this section, "Indiana high growth company" means
a high growth company as defined in subsection (a) that:
(1) has its headquarters in Indiana; and
(2) has:
(A) at least fifty percent (50%) of its employees residing in
Indiana; or
(B) at least seventy-five percent (75%) of its assets located in
Indiana.
(c) If the board decides to allocate part of the fund assets to funds
investing in high growth companies, the board is strongly encouraged
to establish the following:
(1) A goal for investment in funds investing in Indiana high
growth companies of at least twenty-five percent (25%) of the
amount allocated to funds investing in high growth companies.
(2) A preference for investments described in subdivision (1) that
are started in or assisted by Indiana universities and colleges.
(d) The board has five (5) years after the date the goals in subsection
(c) are adopted to achieve the goal percentages.
(e) The board is not required to achieve the goal percentages under
subsection (c) if the board, exercising financial and fiduciary prudence,
determines that sufficient appropriate investments in privately held
equity or debt assets are not available in Indiana.
(f) This section expires July 1, 2013.
accumulated, all assessments levied for a biennial period shall be
retained by the fund. The amount of the assessments, if any, levied by
the board shall, to the extent the fund exceeds the reserve for losses at
the end of a biennial period commencing July 1 of each odd
odd-numbered year, be distributed to the depositories that had public
funds on deposit during the biennial period in which the assessments
were paid. The distribution shall be made to the respective depositories
in the proportion that the total assessments paid by each depository
during that period bears to the total assessments then paid by all
depositories. A distribution to which any closed depository would
otherwise be entitled shall be set off against any claim that the
insurance fund may have against the closed depository.
(d) The board may invest, reinvest, and exchange investments of the
insurance fund in excess of the cash working balance in any of the
following:
(1) In bonds, notes, certificates, and other valid obligations of the
United States, either directly or, subject to the limitations in
subsection (e), in the form of securities of or other interests in an
open-end no-load management-type investment company or
investment trust registered under the provisions of the Investment
Company Act of 1940, as amended (15 U.S.C. 80a et seq.).
(2) In bonds, notes, debentures, and other securities issued by a
federal agency or a federal instrumentality and fully guaranteed
by the United States either directly or, subject to the limitations
in subsection (e), in the form of securities of or other interests in
an open-end no-load management-type investment company or
investment trust registered under the provisions of the Investment
Company Act of 1940, as amended (15 U.S.C. 80a et seq.).
(3) In bonds, notes, certificates, and other valid obligations of a
state, or of an Indiana political subdivision that are issued under
law, the issuers of which, for five (5) years before the date of the
investment, have promptly paid the principal and interest on their
bonds and other legal obligations.
(4) In bonds or other obligations of the state office building
commission.
(5) In investments permitted the state under IC 5-13-10.5.
(6) In guarantees of industrial development obligations or credit
enhancement obligations, or both, for the purposes of retaining
and increasing employment in enterprises in Indiana, subject to
the limitations and conditions set out in this subdivision,
subsection (e), and section 8 of this chapter. An individual
guarantee of the board under this subdivision must not exceed
eight million dollars ($8,000,000).
(7) In guarantees of bonds or notes issued under IC 5-1.5-4-1,
subject to the limitations and conditions set out in subsection (e)
and section 8 of this chapter.
(8) In bonds, notes, or other valid obligations of the Indiana
development finance authority that have been issued in
conjunction with the authority's acquisition, development, or
improvement of property or other interests for an industrial
development project (as defined in IC 4-4-10.9-11) that the
authority has undertaken for the purposes of retaining or
increasing employment in existing or new enterprises in Indiana,
subject to the limitations in subsection (e).
(9) In notes or other debt obligations of counties, cities, and towns
that have been issued under IC 6-1.1-39 for borrowings from the
industrial development fund under IC 4-4-8 IC 5-28-9 for
purposes of retaining or increasing employment in existing or new
enterprises in Indiana, subject to the limitations in subsection (e).
(10) In bonds or other obligations of the Indiana housing finance
authority.
(e) The investment authority of the board under subsection (d) is
subject to the following limitations:
(1) For investments under subsections subsection (d)(1) and
(d)(2), the portfolio of an open-end no-load management-type
investment company or investment trust must be limited to:
(A) direct obligations of the United States and obligations of
a federal agency or a federal instrumentality that are fully
guaranteed by the United States; and
(B) repurchase agreements fully collateralized by obligations
described in clause (A), of which the company or trust takes
delivery either directly or through an authorized custodian.
(2) Total outstanding investments in guarantees of industrial
development obligations and credit enhancement obligations
under subsection (d)(6) must not exceed the greater of:
(A) ten percent (10%) of the available balance of the insurance
fund; or
(B) fourteen million dollars ($14,000,000).
(3) Total outstanding investments in guarantees of bond bank
obligations under subsection (d)(7) must not exceed the greater
of:
(A) twenty percent (20%) of the available balance of the
insurance fund; or
(B) twenty-four million dollars ($24,000,000).
under subsection (c).
(5) Notwithstanding subdivision (3), pledge to repay the balance
of the loan plus interest at a time and in a manner specified by the
board for depositories whenever the board for depositories
determines that one (1) of the following has occurred:
(A) The board of trustees of the district has failed to develop
a financial plan that substantially complies with subsection (c).
(B) There has not been substantial compliance with a financial
plan.
(C) The board of trustees of the district has failed to make a
payment on the date established under subdivision (3).
If repayment is required under this subdivision, the treasurer of
state shall transfer the amount necessary to the insurance fund
from the allocation to the district from the public mass
transportation fund for the remainder of the state fiscal year in
which the repayment is required. If the amount transferred from
the allocation is insufficient, the balance shall be transferred from
the commuter rail service fund until the repayment is complete.
(c) Before December 1 of each year, the board of trustees of a
district receiving a loan under this section shall submit to the board for
depositories, the Indiana department of transportation, and the budget
committee a financial plan for the following calendar year. The plan
must provide for an annual operating budget under which expenses do
not exceed revenues from all sources. The financial plan may identify
supplemental revenue sources from within the district that will be
dedicated during the year to commuter rail service in the district.
Within sixty (60) days after the plan is submitted, the board for
depositories shall determine if the financial plan complies with this
subsection. In making its determination, the board for depositories shall
consider the recommendations of the budget committee, which shall
base its recommendations on the department of transportation's
evaluation of the financial plan.
(d) Before April 1 of the second calendar year after a loan under this
section is made and before April 1 of each year thereafter, the board of
trustees of a district receiving a loan shall submit to the board for
depositories, the Indiana department of transportation, and the budget
committee a report covering the preceding calendar year. The report
must summarize the district's compliance with the financial plan
submitted under subsection (c) and must contain other information as
the board for depositories may require. Before July 1 of that year, the
board for depositories shall determine if the district has substantially
complied with the financial plan. In making its determination, the
board for depositories shall consider the recommendations of the
budget committee, which shall base its recommendations on the
Indiana department of transportation's evaluation of the report.
(e) After January 1, 1988, the board for depositories and the board
of trustees of a district receiving a loan under this section may agree to
an early repayment of the loan. If an early repayment is agreed to, the
board for depositories may guarantee a loan obtained by the board of
trustees under conditions established by the board for depositories.
These conditions may include the requirement that the district pledge
to repay from its allocations from the public mass transportation fund
and the commuter rail fund service any loss sustained by the insurance
fund as a result of the guarantee.
has jurisdiction:
(A) to receive information concerning the individual's alleged
misconduct; and
(B) to discuss, before a determination, the individual's status
as an employee, a student, or an independent contractor who
is:
(i) a physician; or
(ii) a school bus driver.
(7) For discussion of records classified as confidential by state or
federal statute.
(8) To discuss before a placement decision an individual student's
abilities, past performance, behavior, and needs.
(9) To discuss a job performance evaluation of individual
employees. This subdivision does not apply to a discussion of the
salary, compensation, or benefits of employees during a budget
process.
(10) When considering the appointment of a public official, to do
the following:
(A) Develop a list of prospective appointees.
(B) Consider applications.
(C) Make one (1) initial exclusion of prospective appointees
from further consideration.
Notwithstanding IC 5-14-3-4(b)(12), a governing body may
release and shall make available for inspection and copying in
accordance with IC 5-14-3-3 identifying information concerning
prospective appointees not initially excluded from further
consideration. An initial exclusion of prospective appointees from
further consideration may not reduce the number of prospective
appointees to fewer than three (3) unless there are fewer than
three (3) prospective appointees. Interviews of prospective
appointees must be conducted at a meeting that is open to the
public.
(11) To train school board members with an outside consultant
about the performance of the role of the members as public
officials.
(12) To prepare or score examinations used in issuing licenses,
certificates, permits, or registrations under IC 15-5-1.1 or IC 25.
(c) A final action must be taken at a meeting open to the public.
(d) Public notice of executive sessions must state the subject matter
by specific reference to the enumerated instance or instances for which
executive sessions may be held under subsection (b). The requirements
stated in section 4 of this chapter for memoranda and minutes being
made available to the public is modified as to executive sessions in that
the memoranda and minutes must identify the subject matter
considered by specific reference to the enumerated instance or
instances for which public notice was given. The governing body shall
certify by a statement in the memoranda and minutes of the governing
body that no subject matter was discussed in the executive session
other than the subject matter specified in the public notice.
(e) A governing body may not conduct an executive session during
a meeting, except as otherwise permitted by applicable statute. A
meeting may not be recessed and reconvened with the intent of
circumventing this subsection.
from the Indiana department of commerce economic development
corporation to establish criteria or to implement the rules.
(c) The rules adopted by a governmental body may consider the
number of employees employed by an offeror and the dollar volume of
the offeror's business. The rules must provide that when computing the
size of an offeror, the annual sales and receipts of the offeror and all of
its affiliates must be included.
(d) The rules adopted by a governmental body must include the
following criteria:
(1) A wholesale business is not a small business if its annual sales
for its most recently completed fiscal year exceed four million
dollars ($4,000,000).
(2) A construction business is not a small business if its average
annual receipts for the preceding three (3) fiscal years exceed four
million dollars ($4,000,000).
(3) A retail business or business selling services is not a small
business if its annual sales and receipts exceed five hundred
thousand dollars ($500,000).
(4) A manufacturing business is not a small business if it employs
more than one hundred (100) persons.
Indiana.
(2) A business that pays a majority of its payroll (in dollar
volume) to residents of Indiana.
(3) A business that employs Indiana residents as a majority of its
employees.
(4) A business that makes significant capital investments in
Indiana.
(5) A business that has a substantial positive economic impact on
Indiana as defined by criteria developed under subsection (c).
(c) The Indiana department of administration shall consult with the
department of commerce Indiana economic development
corporation in developing criteria for determining whether a business
is an Indiana business under subsection (a). subsection (b). The
Indiana department of administration may consult with the department
of commerce Indiana economic development corporation to
determine whether a particular business meets the requirements of this
section and the criteria developed under this subsection.
(d) There are the following price preferences for supplies purchased
from an Indiana business:
(1) Five percent (5%) for a purchase expected by the state agency
to be less than five hundred thousand dollars ($500,000).
(2) Three percent (3%) for a purchase expected by the state
agency to be at least five hundred thousand dollars ($500,000) but
less than one million dollars ($1,000,000).
(3) One percent (1%) for a purchase expected by the state agency
to be at least one million dollars ($1,000,000).
(e) Notwithstanding subsection (d), a state agency shall award a
contract to the lowest responsive and responsible offeror, regardless of
the preference provided in this section, if:
(1) the offeror is an Indiana business; or
(2) the offeror is a business from a state bordering Indiana and the
business's home state does not provide a preference to the home
state's businesses more favorable than is provided by Indiana law
to Indiana businesses.
(f) A business that wants to claim a preference provided under this
section must do all of the following:
(1) State in the business's bid that the business claims the
preference provided by this section.
(2) Provide the following information to the department:
(A) The location of the business's principal place of business.
If the business claims the preference as an Indiana business
described in subsection (b)(1), a statement explaining the
reasons the business considers the location named as the
business's principal place of business.
(B) The amount of the business's total payroll and the amount
of the business's payroll paid to Indiana residents.
(C) The number of the business's employees and the number
of the business's employees who are Indiana residents.
(D) If the business claims the preference as an Indiana
business described in subsection (b)(4), a description of the
capital investments made in Indiana and a statement of the
amount of those capital investments.
(E) If the business claims the preference as an Indiana
business described in subsection (b)(5), a description of the
substantial positive economic impact the business has on
Indiana.
(g) This section expires July 1, 2009.
this article.
Sec. 9. Except as specifically provided by law, the corporation
and the board are subject to IC 5-14-1.5 and IC 5-14-3.
Sec. 10. An employee of the corporation is entitled to
reimbursement for traveling expenses as provided under
IC 4-13-1-4 and other expenses actually incurred in connection
with the employee's duties as approved by the budget agency.
Sec. 11. The corporation may request appropriations from the
general assembly to:
(1) carry out the corporation's duties under this article; and
(2) fund economic development and job creation programs.
Sec. 12. (a) The Indiana promotion fund is established within the
state treasury.
(b) Except as provided in section 13 of this chapter, the
corporation shall deposit the following in the fund:
(1) All funding received from the private sector under
IC 5-28-6-1(6).
(2) All other gifts, donations, bequests, devises, and
contributions received by the corporation.
(c) The corporation shall administer the fund. 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 public
money may be invested. Interest that accrues from these
investments shall be deposited in the fund.
(d) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
(e) Except as provided in the terms of a gift, a donation, a
contribution, a bequest, a devise, or other private sector funding,
money in the fund may be used at the discretion of the board to
carry out in any manner the corporation's purposes under this
article.
(f) Money in the fund may be transferred to any fund
administered by the corporation.
(g) Money in the fund is continuously appropriated to the
corporation for the purposes of this article.
Sec. 13. (a) Notwithstanding section 12 of this chapter, the board
may establish a nonprofit subsidiary corporation to solicit and
accept private sector funding, gifts, donations, bequests, devises,
and contributions.
(b) A subsidiary corporation established under this section:
(1) must use money received under subsection (a) to carry out
in any manner the purposes and programs under this article;
(2) must report to the budget committee each year
concerning:
(A) the use of money received under subsection (a); and
(B) the balances in any accounts or funds established by
the subsidiary corporation; and
(3) may deposit money received under subsection (a) in an
account or fund that is:
(A) administered by the subsidiary corporation; and
(B) not part of the state treasury.
(c) The state board of accounts shall annually audit a subsidiary
corporation established under this section.
Chapter 6. Duties
Sec. 1. The corporation shall do the following:
(1) Create and regularly update a strategic economic
development plan.
(2) Establish strategic benchmarks and performance
measures.
(3) Monitor and report on Indiana's economic performance.
(4) Market Indiana to businesses worldwide.
(5) Assist Indiana businesses that want to grow.
(6) Solicit funding from the private sector for selected
initiatives.
(7) Provide for the orderly economic development and growth
of Indiana.
(8) Establish and coordinate the operation of programs
commonly available to all citizens of Indiana to implement a
strategic plan for the state's economic development and
enhance the general welfare.
(9) Evaluate and analyze the state's economy to determine the
direction of future public and private actions, and report and
make recommendations to the general assembly in an
electronic format under IC 5-14-6 with respect to the state's
economy.
Sec. 2. (a) The corporation shall develop and promote programs
designed to make the best use of Indiana resources to ensure a
balanced economy and continuing economic growth for Indiana,
and, for those purposes, may do the following:
(1) Cooperate with federal, state, and local governments and
agencies in the coordination of programs to make the best use
of Indiana resources.
(2) Receive and expend funds, grants, gifts, and contributions
of money, property, labor, interest accrued from loans made
by the corporation, and other things of value from public and
private sources, including grants from agencies and
instrumentalities of the state and the federal government. The
corporation:
(A) may accept federal grants for providing planning
assistance, making grants, or providing other services or
functions necessary to political subdivisions, planning
commissions, or other public or private organizations;
(B) shall administer these grants in accordance with the
terms of the grants; and
(C) may contract with political subdivisions, planning
commissions, or other public or private organizations to
carry out the purposes for which the grants were made.
(3) Direct that assistance, information, and advice regarding
the duties and functions of the corporation be given to the
corporation by an officer, agent, or employee of the executive
branch of the state. The head of any other state department or
agency may assign one (1) or more of the department's or
agency's employees to the corporation on a temporary basis
or may direct a division or an agency under the department's
or agency's supervision and control to make a special study or
survey requested by the corporation.
(b) The corporation shall perform the following duties:
(1) Develop and implement industrial development programs
to encourage expansion of existing industrial, commercial,
and business facilities in Indiana and to encourage new
industrial, commercial, and business locations in Indiana.
(2) Assist businesses and industries in acquiring, improving,
and developing overseas markets and encourage international
plant locations in Indiana. The corporation, with the approval
of the governor, may establish foreign offices to assist in this
function.
(3) Promote the growth of minority business enterprises by
doing the following:
(A) Mobilizing and coordinating the activities, resources,
and efforts of governmental and private agencies,
businesses, trade associations, institutions, and individuals.
(B) Assisting minority businesses in obtaining
governmental or commercial financing for expansion or
establishment of new businesses or individual development
projects.
(C) Aiding minority businesses in procuring contracts
from governmental or private sources, or both.
(D) Providing technical, managerial, and counseling
assistance to minority business enterprises.
(4) Assist the office of the lieutenant governor in:
(A) community economic development planning;
(B) implementation of programs designed to further
community economic development; and
(C) the development and promotion of Indiana's tourist
resources.
(5) Assist the commissioner of agriculture in promoting and
marketing of Indiana's agricultural products and provide
assistance to the commissioner of agriculture.
(6) With the approval of the governor, implement federal
programs delegated to the state to carry out the purposes of
this article.
(7) Promote the growth of small businesses by doing the
following:
(A) Assisting small businesses in obtaining and preparing
the permits required to conduct business in Indiana.
(B) Serving as a liaison between small businesses and state
agencies.
(C) Providing information concerning business assistance
programs available through government agencies and
private sources.
(8) Assist the Indiana commission for agriculture and rural
development in performing its functions under IC 4-4-22.
(9) Establish a public information page on its current Internet
site on the world wide web. The page must provide the
following:
(A) By program, cumulative information on the total
amount of incentives awarded, the total number of
companies that received the incentives and were assisted in
a year, and the names and addresses of those companies.
(B) A mechanism on the page whereby the public may
request further information online about specific programs
or incentives awarded.
(C) A mechanism for the public to receive an electronic
response.
(c) The corporation may do the following:
(1) Disseminate information concerning the industrial,
commercial, governmental, educational, cultural,
recreational, agricultural, and other advantages of Indiana.
purposes of the training program.
(4) Develop or assist in the development of training plans.
(5) Evaluate the training program with respect to the
program's impact on the improvement of workforce skills, job
creation, and job retention.
(6) Involve other entities, by contract or otherwise, in
carrying out the purposes of the training program.
Sec. 4. Participation in the training program is limited to
businesses that:
(1) meet the eligibility requirements of the corporation; and
(2) comply with this chapter.
Sec. 5. (a) The training 2000 fund is established within the state
treasury to be used exclusively for the purposes of this chapter.
(b) The fund consists of appropriations from the general
assembly.
(c) The corporation shall administer the fund. The following
may be paid from money in the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry
out the purposes of this chapter.
(d) 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 may be invested. Interest that
accrues from these investments shall be deposited in the fund.
Chapter 8. Economic Development Fund
Sec. 1. As used in this chapter, "federal agency" means the
Economic Development Administration of the United States
Department of Commerce.
Sec. 2. As used in this chapter, "federal program" means a
federal loan or grant program that promotes economic
development.
Sec. 3. As used in this chapter, "fund" refers to the economic
development fund established by section 5 of this chapter.
Sec. 4. As used in this chapter, "qualified entity" means the
state, a political subdivision of the state, an agency of the state or
a political subdivision of the state, a nonprofit corporation, or the
Indiana development finance authority established under
IC 4-4-10.9 and IC 4-4-11.
Sec. 5. (a) The economic development fund is established within
the state treasury. The fund is a revolving fund to provide grants
and loans for economic development activities in Indiana for the
purposes of this chapter.
fund money, a qualified entity that wants a grant from the fund
must submit an application for the grant to the corporation. The
corporation shall review the application and may approve the
application if the activities for which the grant money is to be used
are activities:
(1) that the qualified entity has statutory authority to
perform; and
(2) for which this chapter permits fund money to be used.
(b) When fund money is to be used to match federal money, a
qualified entity that wants a grant must submit to the corporation
an application for a grant under the federal program. The
corporation shall review the application and shall submit the
application to the federal agency if the corporation finds that the
activities for which the grant money is to be used are activities:
(1) that the qualified entity has statutory authority to
perform; and
(2) for which the federal program permits money to be used.
Before submitting an application to the federal agency, the
corporation must also approve the completeness and technical
accuracy of the qualified entity's application.
(c) Money from the fund and money from a federal program
may be used for the following projects:
(1) Public works.
(2) Technical assistance.
(3) Economic adjustment assistance.
(4) Other economic development programs.
(d) If the qualified entity proposes to use its money for a loan
program, the application from the qualified entity must contain the
conditions under which loans will be made and the interest rate
that will be charged.
Sec. 10. (a) A qualified entity may apply to the corporation for
a loan from the fund to be used for economic development
programs.
(b) An amount loaned to a qualified entity is an obligation of the
qualified entity and shall be repaid to the corporation within a time
to be fixed by the corporation, not to exceed three (3) years.
(c) The corporation shall determine interest rates for the loans
to be made under this section.
(d) Final disbursements of money under this section must be
made with the approval of the state board of finance.
(e) If a qualified entity fails to make repayment of money loaned
under this section, the amount payable may be:
administer an approved industrial development program. The
combined amount of outstanding loans to any one (1) program may
not exceed one million dollars ($1,000,000). However, the one
million dollar ($1,000,000) restriction in this subsection does not
apply to an approved industrial development program in an
economic development district established by a qualified entity
under IC 6-1.1-39. A loan made under this chapter to an economic
development commission is not a loan to or an obligation of the
qualified entity that formed the commission, if the repayment of
the loan is limited to a specified revenue source under section 15 of
this chapter.
(c) A small business investment company or a minority
enterprise small business investment company may use the loan
proceeds for any lawful purpose.
(d) Notwithstanding any other law (including IC 5-1-11), the
loan to a qualified entity under this section may be directly
negotiated with the corporation without public sale of bonds or
other evidences of indebtedness of the qualified entity.
Sec. 11. A qualified entity may institute and administer an
industrial development program that is approved by ordinance or
resolution adopted by the governing body of the qualified entity
and approved by the corporation.
Sec. 12. (a) The state board of finance and the corporation shall
authorize the making of a loan to a qualified entity under this
chapter only when all the following conditions exist:
(1) An application for the loan has been submitted by the
qualified entity, in a verified petition, to the state board of
finance and the corporation in the manner and form as the
state board of finance and the corporation direct. The
application must set forth all the following:
(A) The need for the program and the need for funds for
instituting and administering the program.
(B) An engineering estimate of the cost of the proposed
program acceptable to the state board of finance and the
corporation.
(C) The amount of money needed.
(D) Other information that is requested by the state board
of finance and the corporation.
(2) The proposed program has been approved by the state
board of finance and the corporation, which they may do only
if they have determined that the program is based on sound
engineering principles and is in the interest of industrial
development.
(3) The loan does not exceed one hundred percent (100%) of
the cost to the qualified entity of an approved program, with
the cost of the program to be based on an estimate made by a
competent engineering authority and approved by the
corporation.
(4) The qualified entity has agreed to furnish assurance,
satisfactory to the state board of finance and the corporation,
that the qualified entity will operate and maintain the
program, after completion, in a satisfactory manner.
(b) The state board of finance and the corporation shall
authorize a loan to a small business investment company or
minority enterprise small business investment company under this
chapter only if:
(1) the small business investment company or minority
enterprise small business investment company has loaned to
or invested in a business located in an enterprise zone for a
purpose directly related to the enterprise zone an amount that
is at least twice the amount of the requested loan; and
(2) the small business investment company or minority
enterprise small business investment company has submitted
an application, before the beginning of the phase out period of
the enterprise zone, to the state board of finance and the
corporation that shows the amount of the loan requested and
other information that is requested by the state board of
finance and the corporation.
Sec. 13. (a) The qualified entity may provide labor, equipment,
and materials from any source at its disposal for such a program,
and participation in accomplishment of the project or projects may
be:
(1) evaluated by the state board of finance and the
corporation; and
(2) computed as a part or all of the share of cost that the
qualified entity is required to pay toward the total cost of the
project or projects for which the loan is obtained.
(b) When participation as described in this section is authorized,
the participation must be under direction of the governing body,
and when cash amounts are included in the qualified entity's share
of total cost, the cost amounts shall be provided in the usual and
accepted manner for the financing of the affairs of the qualified
entity. Costs of engineering and legal services to the borrower may
be regarded as a part of the total cost of the project.
by the city, town, or county, by the city, town, or county that
established the special taxing district.
(4) If the qualified entity is a special taxing district that was
not established by a city, town, or county, by the county in
which the special taxing district is located.
If repayment of the loan is to be from a specified revenue source
under subsection (a)(5), the ordinance must state the revenue
source and must state that the qualified entity is not obligated to
pay the principal or interest on the loan except from the specified
revenue source. An ordinance may not provide for repayment from
a specified revenue source if the repayment would impair the
qualified entity's contract with an owner of outstanding obligations
payable from the specified revenue source.
(c) Notwithstanding any other law, the qualified entity may
enter into loans under this chapter without obtaining the approval
of any other body.
Sec. 16. A qualified entity receiving a loan under this chapter
may levy an annual tax on personal and real property located
within the qualified entity's geographical limits for industrial
development purposes, in addition to any other tax authorized by
statute to be levied for such purposes, at a rate that will produce
sufficient revenue to pay the annual installment and interest on a
loan made under this chapter. The tax may be in addition to the
maximum annual rates prescribed by IC 6-1.1-18, IC 6-1.1-18.5,
IC 6-1.1-19, and other statutes.
Sec. 17. (a) If a qualified entity fails to make repayment of
money lent under this chapter or is in any way indebted to the
industrial development fund for any amounts incurred or accrued,
the amount payable may be:
(1) withheld by the auditor of state, as set forth in the loan
agreement with the qualified entity, from any money payable
to the qualified entity and transferred to the fund; or
(2) recovered in an action by the state on relation of the
corporation, prosecuted by the attorney general, in the circuit
or superior court of the county in which the qualified entity is
located.
(b) If a small business investment company or a minority
enterprise small business investment company fails to make
repayment of money lent under this chapter or is in any way
indebted to the industrial development fund for any amounts
incurred or accrued, the amount payable may be recovered in an
action by the state on relation of the company, prosecuted by the
attorney general, in the circuit or superior court of the county in
which the small business investment company or minority
enterprise small business investment company is located.
Sec. 18. There is appropriated annually to the corporation from
the state general fund, from money not otherwise appropriated, an
amount sufficient to administer this chapter, subject to the
approval of the budget committee.
Sec. 19. (a) The corporation, with the approval of the state
board of finance, may sell to a person (including the board for
depositories) the notes or other debt obligations issued by a county,
city, or town under this chapter or IC 6-1.1-39 for any borrowing
from the industrial development fund under this chapter.
(b) A sale by the corporation of a note or another debt
obligation of a county, city, or town as authorized by subsection (a)
shall be made:
(1) without recourse against the corporation, the state board
of finance, or the industrial development fund; and
(2) on the other terms and conditions that the corporation,
with the approval of the state board of finance, establishes.
(c) A purchaser of a note or another debt obligation succeeds to
all the rights, entitlements, conditions, and limitations under the
note or other debt obligation. However, section 17 of this chapter
does not apply to a note or another debt obligation that has been
sold under subsection (a).
(d) After a sale of a note or another debt obligation, the
corporation, the state board of finance, and the industrial
development fund have no right, title, or interest in or to the note
or debt obligation.
(e) The proceeds from a sale of a note or another debt obligation
shall be deposited in the industrial development fund to be used
exclusively for the purpose of this chapter.
Sec. 20. (a) For industrial development projects (as defined in
IC 4-4-10.9-11(a)) that have a cost of the project (as defined in
IC 4-4-10.9-5) greater than one hundred million dollars
($100,000,000), the corporation may coordinate a loan to a county,
city, or town under this chapter that is to be funded under
IC 6-1.1-39 with a simultaneous or successive sale of the note or
other debt obligation issued or to be issued by the county, city, or
town to evidence the borrowing under this chapter. For such a
coordinated or simultaneous lending and sale, the sale proceeds
may be applied to the funding of the loan to the county, city, or
town.
funded in that application period.
Sec. 15. (a) For purposes of this section, "operating
expenditures" includes the following:
(1) Business plans.
(2) Marketing studies.
(3) Mentor identification.
(4) Securitization of capital.
(5) Legal services.
(6) Other necessary services.
(b) The total of all grants provided under this chapter for a
technology park may not exceed the following:
(1) Two million dollars ($2,000,000) for the leasing,
construction, or purchase of capital assets.
(2) Two million dollars ($2,000,000) for operating
expenditures, and, subject to subsection (d), with not more
than five hundred thousand dollars ($500,000) being
distributed in any one (1) fiscal year.
(c) This subsection applies to a grant provided under subsection
(b)(1) for the leasing of a capital asset. The grant may be applied
only to lease payments made during:
(1) the fiscal year; or
(2) each of the three (3) fiscal years immediately following the
fiscal year;
in which the grant is provided.
(d) The annual distribution of a grant under subsection (b)(2)
may not exceed the following:
(1) Eighty percent (80%) of total operating expenditures in
the fiscal year in which the grant is provided.
(2) Sixty percent (60%) of total operating expenditures in the
fiscal year after the fiscal year in which the grant is provided.
(3) Forty percent (40%) of total operating expenditures in the
second fiscal year after the fiscal year in which the grant is
provided.
(4) Twenty percent (20%) of total operating expenditures in
the third fiscal year after the fiscal year in which the grant is
provided.
Sec. 16. A capital expenditure grant under this chapter shall
require that the lesser of:
(1) two million dollars ($2,000,000); or
(2) fifty percent (50%) of the total capital costs;
of the project being funded by the grant be matched from other
sources.
Not more than twenty-five percent (25%) of the grant amounts
awarded under this chapter may be awarded for the provision or
rehabilitation of low income housing. The grant may be used by the
organization only to pay for the following expenses:
(1) Employee salaries.
(2) Office and other facilities.
(3) Professional services provided under contract to the
organization.
(4) A strategic plan of economic development for any of the
areas served by the organization.
(5) Other similar administrative expenses of the organization.
(6) Expenses related to the development of specialized
training programs that benefit economic development
initiatives.
(7) Expenses incurred in research and development projects
related to economic development initiatives.
(b) A grant under this chapter may not be used by the
organization to provide direct financial assistance to a business or
specific development project.
(c) The corporation may award a grant under this chapter for
the provision or rehabilitation of low income housing only upon the
authorization of the office of the lieutenant governor. The office of
the lieutenant governor is responsible for administering a grant
under this chapter for the provision or rehabilitation of low income
housing.
Sec. 7. (a) A grant under this chapter must be matched by funds
raised by the organization from sources other than state funds. The
amount of the grant must equal:
(1) one dollar ($1) for every two dollars ($2) raised by the
organization, in the case of an organization that serves only
one (1) county; or
(2) one dollar ($1) for every one dollar ($1) raised by the
organization, in the case of an organization that serves at least
two (2) counties.
(b) A grant under this chapter may not exceed:
(1) fifty thousand dollars ($50,000), in the case of a grant to an
organization that serves only one (1) county; or
(2) seventy-five thousand dollars ($75,000), in the case of a
grant to an organization that serves at least two (2) counties.
Sec. 8. (a) The corporation may adopt policies and guidelines
governing application criteria and procedures for organizations
applying for grants under this chapter.
applicant of any part of the fees or charges established by a state
agency for the review and approval of permit applications.
Sec. 9. This chapter does not affect the authority of a state
agency to approve or deny a permit in the manner provided by any
other law.
Sec. 10. Upon request of the center, each state agency shall
provide the assistance and data necessary to enable the center to
perform its duties under this chapter.
Sec. 11. The corporation may adopt policies and guidelines to
implement this chapter.
Chapter 14. Promotion of Trade Shows
Sec. 1. As used in this chapter, "fund" refers to the trade
promotion fund established by section 6 of this chapter.
Sec. 2. As used in this chapter, "small business concern" means
a small business concern as defined in 15 U.S.C. 632.
Sec. 3. As used in this chapter, "trade mission" means a planned
tour of business locations, all of which are:
(1) located in or outside the United States; and
(2) recommended by:
(A) the United States Department of Commerce Foreign
Commercial Service;
(B) the United States Department of Agriculture Foreign
Agriculture Service; or
(C) the corporation.
Sec. 4. As used in this chapter, "trade show" means an
exhibition, an exposition, or a fair:
(1) located in or outside the United States; and
(2) recommended by:
(A) the United States Department of Commerce Foreign
Commercial Service; or
(B) the United States Department of Agriculture Foreign
Agriculture Service.
Sec. 5. (a) The corporation shall promote the participation of
small business concerns in trade shows and trade missions.
(b) Before promoting participation in trade shows and trade
missions, the corporation must:
(1) conduct market research to determine the presence and
extent of overseas markets for Indiana small business
concerns; and
(2) determine the market areas offering Indiana small
business concerns the best export opportunities.
(c) In promoting participation in trade shows and trade
missions, the corporation shall emphasize trade shows and trade
missions considered to offer Indiana small business concerns the
best export opportunities for products produced in Indiana.
Sec. 6. (a) The trade promotion fund is established within the
state treasury as a dedicated fund. Money in the fund must be
spent by the corporation exclusively for the purposes described in
this chapter.
(b) The fund consists of appropriations from the general
assembly.
(c) The corporation shall administer the fund. The following
may be paid from money in the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry
out the purposes of this chapter.
(d) 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 may be invested. Interest that
accrues from these investments shall be deposited in the state
general fund.
Sec. 7. The corporation may provide financial assistance to a
small business concern by reimbursing the small business concern
solely for booth rental fees related to its participation in a trade
show or trade mission.
Sec. 8. (a) Reimbursement for booth rental fees incurred by a
small business concern under section 7 of this chapter for
participation in one (1) trade show or trade mission may not exceed
the lesser of:
(1) five thousand dollars ($5,000); or
(2) the amount determined in subsection (b).
(b) The amount to be used in subsection (a)(2) is the amount
determined under the following STEPS:
STEP ONE: Determine the total booth rental fees incurred by
the small business concern under section 7 of this chapter.
STEP TWO: Subtract from the amount determined in STEP
ONE any amounts received by the small business concern
from a trade show promotion program or trade mission
program, other than the program established by this chapter.
(c) The maximum financial assistance that may be provided to
a small business concern during a state fiscal year may not exceed
ten thousand dollars ($10,000).
Sec. 9. To qualify for financial assistance under this chapter, a
small business concern must:
(1) apply to the corporation for approval to participate in a
trade show or trade mission in the form and by the time
specified by the board;
(2) establish to the satisfaction of the corporation that
participation in the trade show or trade mission will enhance
the export opportunities of products produced in Indiana by
the small business concern;
(3) maintain adequate records of the expenses incurred by the
small business concern to participate in a trade show or trade
mission;
(4) certify to the corporation the amount of financial
assistance, if any, received by the small business concern from
a trade show promotion program or trade mission program
other than the program established by this chapter; and
(5) provide to the corporation, on request:
(A) the records of the expenses related to the small
business concern's participation in a trade show or trade
mission; and
(B) information regarding the effectiveness of the program
established by this chapter in enhancing the export
opportunities of the small business concern.
Sec. 10. The corporation may adopt policies and guidelines to
implement this chapter.
Chapter 15. Enterprise Zones
Sec. 1. (a) As used in this chapter, "high technology business
operations" means the operations in Indiana of a business engaged
in the following:
(1) Advanced computing.
(2) Creation of advanced materials.
(3) Biotechnology.
(4) Electronic device technology.
(5) Environmental technology.
(6) Medical device technology.
(b) For purposes of this section, "advanced computing" means
technology used in the designing and developing of computing
hardware and software, including innovations in designing the full
range of hardware from hand held calculators to supercomputers
and peripheral equipment.
(c) For purposes of this section, "advanced materials" means
materials with engineered properties created through the
development of specialized processing and synthesis technology,
including ceramics, high value added metals, electronic materials,
composites, polymers, and biomaterials.
(d) For purposes of this section, "biotechnology" means the
continually expanding body of fundamental knowledge about the
functioning of biological systems from the macro level to the
molecular and subatomic levels, as well as novel products, services,
technologies, and subtechnologies developed as a result of insights
gained from research advances that add to that body of
fundamental knowledge.
(e) For purposes of this section, "electronic device technology"
means technology involving any of the following:
(1) Microelectronics.
(2) Semiconductors.
(3) Electronic equipment.
(4) Instrumentation.
(5) Radio frequency waves.
(6) Microwaves.
(7) Millimeter electronics.
(8) Optical and optic electrical devices.
(9) Data and digital communications.
(10) Imaging devices.
(f) For purposes of this section, "environmental technology"
means any of the following:
(1) The assessment and prevention of threats or damage to
human health or the environment.
(2) Environmental cleanup.
(3) The development of alternative energy sources.
(g) For purposes of this section, "medical device technology"
means technology involving any medical equipment or product
(other than a pharmaceutical product) that has therapeutic value
or diagnostic value and is regulated by the federal Food and Drug
Administration.
Sec. 2. As used in this chapter, "U.E.A." refers to an urban
enterprise association established under section 13 of this chapter.
Sec. 3. As used in this chapter, "zone business" means an entity
that accesses at least one (1) tax credit or exemption incentive
available under this chapter, IC 6-1.1-20.8, or IC 6-3-3-10.
Sec. 4. (a) Except as provided in subsection (b):
(1) a package liquor store that holds a liquor dealer's permit
under IC 7.1-3-10; or
(2) any other entity that is required to operate under a license
issued under IC 7.1;
is not eligible for incentives available to zone businesses.
member who knowingly or intentionally discloses information that
is confidential under this section commits a Class A misdemeanor.
(c) The board may grant one (1) extension of the time allowed
to comply with subsection (a) under the provisions of this
subsection. To qualify for an extension, a zone business must apply
to the board by letter postmarked before June 1. The application
must be in the form specified by the board. The extension may not
exceed forty-five (45) days under rules adopted by the board under
IC 4-22-2.
(d) If a zone business that did not comply with subsection (a)
before June 1 and did not file for an extension under subsection (c)
before June 1 complies with subsection (a) before July 16, the
amount of the tax credit and exemption incentives for the
preceding year that were otherwise available to the zone business
because the business was a zone business are waived, unless the
zone business pays to the board a penalty of fifteen percent (15%)
of the amount of the tax credit and exemption incentives for the
preceding year that were otherwise available to the zone business
because the business was a zone business. A zone business that pays
a penalty under this subsection for a year must pay the penalty to
the board before July 16 of that year. The board shall deposit any
penalty payments received under this subsection in the enterprise
zone fund.
(e) This subsection is in addition to any other sanction imposed
by subsection (d) or any other law. If a zone business fails to
comply with subsection (a) before July 16 and does not pay any
penalty required under subsection (d) by letter postmarked before
July 16 of that year, the zone business is:
(1) denied all the tax credit and exemption incentives available
to a zone business because the business was a zone business
for that year; and
(2) disqualified from further participation in the enterprise
zone program under this chapter until the zone business:
(A) petitions the board for readmission to the enterprise
zone program under this chapter; and
(B) pays a civil penalty of one hundred dollars ($100).
Sec. 8. (a) This section applies to records and other information,
including records and information that are otherwise confidential,
maintained by the following:
(1) The board.
(2) A U.E.A.
(3) The department of state revenue.
capacity of the U.E.A. to carry out the goals and purposes of
this chapter.
Sec. 10. (a) An enterprise zone expires ten (10) years after the
day on which it is designated by the board. The two (2) year period
immediately before the day on which the enterprise zone expires is
the phaseout period. During the phaseout period, the board may
review the success of the enterprise zone based on the following
criteria and may, with the consent of the budget committee, renew
the enterprise zone, including all provisions of this chapter, for five
(5) years:
(1) Increases in capital investment in the zone.
(2) Retention of jobs and creation of jobs in the zone.
(3) Increases in employment opportunities for residents of the
zone.
(b) If an enterprise zone is renewed under subsection (a), the
two (2) year period immediately before the day on which the
enterprise zone expires is another phaseout period. During the
phaseout period, the board may review the success of the
enterprise zone based on the criteria set forth in subsection (a) and,
with the consent of the budget committee, may again renew the
enterprise zone, including all provisions of this chapter, for a final
period of five (5) years. The zone may not be renewed after the
expiration of this final five (5) year period.
Sec. 11. (a) Notwithstanding any other provision of this chapter,
one (1) or more units (as defined in IC 36-1-2-23) may declare all
or any part of a military base or another military installation that
is inactive, closed, or scheduled for closure as an enterprise zone.
The declaration shall be made by a resolution of the legislative
body of the unit that contains the geographic area being declared
an enterprise zone. The legislative body must include in the
resolution that a U.E.A. is created or designate another entity to
function as the U.E.A. under this chapter. The resolution must also
be approved by the executive of the unit.
(b) If the resolution is approved, the executive shall file the
resolution and the executive's approval with the board. If an entity
other than a U.E.A. is designated to function as a U.E.A., the
entity's acceptance must be filed with the board along with the
resolution. The enterprise zone designation is effective on the first
day of the month following the day the resolution is filed with the
board.
(c) Establishment of an enterprise zone under this section is not
subject to the limit of two (2) new enterprise zones each year under
section 9(a) of this chapter.
Sec. 12. The board may not approve the enlargement of an
enterprise zone's geographic boundaries unless the area to be
enlarged meets the criteria of economic distress set forth in section
9(c)(1) of this chapter.
Sec. 13. (a) There is established in each applicant for designation
as an enterprise zone and in each enterprise zone an urban
enterprise association (U.E.A). The twelve (12) members of the
U.E.A. shall be chosen as follows:
(1) The governor shall appoint the following:
(A) One (1) state legislator whose district includes all or
part of the enterprise zone.
(B) One (1) representative of the corporation, who is not a
voting member of the U.E.A.
(2) The executive of the municipality in which the zone is
located shall appoint the following:
(A) One (1) representative of the plan commission having
jurisdiction over the zone, if any exists.
(B) One (1) representative of the municipality's
department that performs planning or economic
development functions.
(C) Two (2) representatives of businesses located in the
zone, one (1) of whom shall be from a manufacturing
concern, if any exists in the zone.
(D) One (1) resident of the zone.
(E) One (1) representative of organized labor from the
building trades that represent construction workers.
(3) The legislative body of the municipality in which the zone
is located shall appoint, by majority vote, the following:
(A) One (1) member of the municipality's legislative body
whose district includes all or part of the zone.
(B) One (1) representative of a business located in the zone.
(C) Two (2) residents of the zone, who must not be
members of the same political party.
(b) Members of the U.E.A. serve four (4) year terms. The
appointing authority shall fill any vacancy for the balance of the
vacated term.
(c) Members may be dismissed only by the appointing authority
and only for just cause.
(d) The members shall elect a chairperson, a vice chairperson,
and a secretary by majority vote. This election shall be held every
two (2) years in the same month as the first meeting or whenever
a vacancy occurs. The U.E.A. shall meet at least once every three
(3) months. The secretary shall notify members of meetings at least
two (2) weeks in advance of meetings. The secretary shall provide
a list of members to each member and shall notify members of any
changes in membership.
(e) If an applicant for designation as an enterprise zone does not
receive that designation, the U.E.A. in that municipality is
dissolved when the application is rejected.
Sec. 14. (a) A U.E.A. shall do the following:
(1) Coordinate zone development activities.
(2) Serve as a catalyst for zone development.
(3) Promote the zone to outside groups and individuals.
(4) Establish a formal line of communication with residents
and businesses in the zone.
(5) Act as a liaison between residents, businesses, the
municipality, and the board for any development activity that
may affect the zone or zone residents.
(b) A U.E.A. may do the following:
(1) Initiate and coordinate any community development
activities that aid in the employment of zone residents,
improve the physical environment, or encourage the turnover
or retention of capital in the zone. These additional activities
include but are not limited to recommending to the
municipality the manner and purpose of expenditure of funds
generated under IC 36-7-14-39(g) or IC 36-7-15.1-26(g).
(2) Recommend that the board modify a zone boundary or
disqualify a zone business from eligibility for one (1) or more
benefits or incentives available to zone businesses.
(3) Incorporate as a nonprofit corporation. Such a
corporation may continue after the expiration of the zone in
accordance with the general principles established by this
chapter. A U.E.A. that incorporates as a nonprofit
corporation under this subdivision may purchase or receive
real property from a redevelopment commission under
IC 36-7-14-22.2 or IC 36-7-15.1-15.2.
(c) The U.E.A. may request, by majority vote, that the legislative
body of the municipality in which the zone is located modify or
waive any municipal ordinance or regulation that is in effect in the
zone. The legislative body may, by ordinance, waive or modify the
operation of the ordinance or regulation, if the ordinance or
regulation does not affect health (including environmental health),
safety, civil rights, or employment rights.
disqualification of the business a copy of the panel's recommended
order. The business and these persons shall be considered parties
for purposes of this section.
(d) A party who wishes to oppose the board's adoption of the
recommended order of the hearing panel shall, not later than ten
(10) days after the party's receipt of the recommended order, file
written objections with the board. If the objections are filed, the
board shall set the objections for oral argument and give notice to
the parties. A party at its own expense may cause to be filed with
the board a transcript of the oral testimony or any other part of
the record of the proceedings. The oral argument shall be on the
record filed with the board. The board may hear additional
evidence or remand the action to the hearing panel with
instructions appropriate to the expeditious and proper disposition
of the action. The board may adopt the recommendations of the
hearing panel, may amend or modify the recommendations, or may
make an order or determination as is proper on the record.
(e) If no objections are filed, the board may adopt the
recommended order without oral argument. If the board does not
adopt the proposed findings of fact and recommended order, the
parties shall be notified and the action shall be set for oral
argument as provided in subsection (d).
(f) The final determination made by the board shall be made by
a majority of the quorum needed for board meetings.
Sec. 16. Whenever federal or state money is available for job
training purposes, considerations shall, to the extent possible, be
given to training residents of enterprise zones in industry specific
skills relevant to a resident's particular zone.
Sec. 17. The state pledges to and agrees with the direct recipient
of any enterprise zone incentive under this chapter that the state
will not limit or alter the rights vested in the U.E.A. to fulfill the
terms of any agreements it makes with those recipients or in any
way impair the rights and remedies of those recipients until the
terms of the incentive are fulfilled. The board may include this
pledge and agreement of the state in any agreement it makes with
the recipient.
Chapter 16. Indiana Twenty-First Century Research and
Technology Fund
Sec. 1. As used in this chapter, "fund" refers to the Indiana
twenty-first century research and technology fund established by
section 2 of this chapter.
Sec. 2. (a) The Indiana twenty-first century research and
technology fund is established within the state treasury 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 consists of appropriations from the general
assembly and loan repayments.
(c) The corporation shall administer the fund. The following
may be paid from money in the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry
out the purposes of this chapter.
(d) Earnings from loans made under this chapter shall be
deposited in the fund.
(e) The budget agency shall review each recommendation. The
budget agency, 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.
(f) 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 may be invested. Interest that
accrues from these investments shall be deposited in the state
general fund.
(g) 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.
Sec. 3. (a) An application requesting a grant or loan from the
fund must be targeted to one (1) or more of the areas listed in
section 2 of this chapter.
the fund that is submitted jointly by one (1) or more researchers or
entities, the application must be endorsed by each institution or
entity as required by this subsection.
Sec. 4. (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.
(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 review and 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 interinstitutional 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.
(f) A grant or loan from the fund may not be approved or
recommended to the budget agency by the board unless the grant
or loan has received a positive recommendation from a peer review
panel described in this section.
Sec. 5. The board may use money in the fund to cover
administrative expenses incurred in carrying out the requirements
of this chapter.
Sec. 6. The board shall submit an annual report to the legislative
council before September 1. The report must be in an electronic
format under IC 5-14-6 and must contain the following
information concerning fund activity in the preceding state fiscal
year:
(1) The name of each entity receiving a grant from the fund.
(2) The location of each entity sorted by:
(A) county, in the case of an entity located in Indiana; or
(B) state, in the case of an entity located outside Indiana.
(3) The amount of each grant awarded to each entity.
Chapter 17. Small Business Development
Sec. 1. (a) The corporation shall do the following to carry out
this chapter:
(1) Contribute to the strengthening of the economy of Indiana
by encouraging the organization and development of new
business enterprises, including technologically oriented
enterprises.
(2) Submit an annual report to the governor and to the
general assembly not later than November 1 of each year. The
annual report must:
(A) include detailed information on the structure,
operation, and financial status of the corporation; and
(B) be in an electronic format under IC 5-14-6.
The board shall conduct an annual public hearing to receive
comment from interested parties regarding the annual report,
and notice of the hearing shall be given at least fourteen (14)
days before the hearing in accordance with IC 5-14-1.5-5(b).
(3) Approve and administer loans from the microenterprise
partnership program fund established by IC 5-28-18.
(4) Conduct activities for nontraditional entrepreneurs under
IC 5-28-18.
(5) Establish and administer the small and minority business
financial assistance program under IC 5-28-20.
(6) Establish and administer the microenterprise partnership
program under IC 5-28-19.
(b) The corporation may do the following to carry out this
chapter:
(1) Receive money from any source, enter into contracts, and
expend money for any activities appropriate to its purpose.
(2) Do all other things necessary or incidental to carrying out
the corporation's functions under this chapter.
(3) Establish programs to identify entrepreneurs with
marketable ideas and to support the organization and
development of new business enterprises, including
technologically oriented enterprises.
(4) Conduct conferences and seminars to provide
entrepreneurs with access to individuals and organizations
with specialized expertise.
(5) Establish a statewide network of public, private, and
educational resources to assist the organization and
development of new enterprises.
(6) Operate a small business assistance center to provide small
businesses, including minority owned businesses and
businesses owned by women, with access to managerial and
technical expertise and to provide assistance in resolving
problems encountered by small businesses.
(7) Cooperate with public and private entities, including the
Indiana Small Business Development Center Network and the
federal government marketing program, in exercising the
powers listed in this subsection.
(8) Establish and administer the small and minority business
financial assistance program under IC 5-28-20;
(9) Approve and administer loans from the microenterprise
partnership program fund established by IC 5-28-18.
(10) Coordinate state funded programs that assist the
organization and development of new enterprises.
information:
(1) The total amount of the loan requested from the fund.
(2) The total amount of matching funds to be provided from
the local pool operated by the local board and the sources of
those matching funds.
(3) A detailed description of the local pool, including its
investment criteria.
(4) The impact of the proposed loan on job production in the
area served by the local pool.
(5) Any other information requested by the corporation.
Sec. 10. The corporation's criteria for awarding loans from the
fund to a local board must include the following factors:
(1) The extent to which local financial institutions invest and
participate in the local pool.
(2) The extent to which the local pool is used as a secondary
source of financing that complements conventional financing
provided by existing financial institutions.
(3) The local board's knowledge of successful business
practices.
(4) The extent to which the local board will target the
proceeds of the loan toward nontraditional entrepreneurs.
(5) The extent to which the local board intends to use the loan
proceeds for investment in debt, equity, debt with equity
attributes, or other forms of creative financing.
(6) The extent to which the local board's proposed program
will encourage clustering of small business programs through
proximity to small business incubators and other sources of
small business assistance and technology transfer.
(7) Other criteria established by the corporation.
Sec. 11. A loan from the fund to a local board is subject to the
following conditions:
(1) The local board may use the loan from the fund only to
make and service grants, equity investments, loans, and loan
guarantees to persons who are establishing or operating
businesses in Indiana. However, the local board may not
spend any part of the loan from the fund to defray the
expenses of servicing grants, loans, and loan guarantees unless
that expenditure is specifically authorized in the loan
agreement with the corporation.
(2) The term of the loan may not exceed twenty (20) years.
(3) The loan must require the local board to provide matching
funds in an amount determined by the corporation. However,
the total of the loan plus the matching funds must be at least:
(A) one million dollars ($1,000,000) for a local investment
pool established under section 12 of this chapter; or
(B) five hundred thousand dollars ($500,000) for a local
opportunity pool established under section 13 of this
chapter.
(4) The corporation may forgive or defer payment of all or
part of the interest and principal on the loan.
(5) The loan agreement must require the local board, through
its staff or consultants, to perform the following duties with
respect to recipients of financial assistance from the local
pool:
(A) Provide training in business and financial management
techniques.
(B) Oversee the fiscal operations of the recipients of
financial assistance for at least one (1) year following the
receipt of that assistance.
(C) Provide fiscal management assistance to recipients of
financial assistance when necessary for at least one (1) year
following the receipt of the assistance, including assistance
in the preparation and filing of federal and state tax
returns.
(6) The local board must make a report concerning the local
pool to the corporation before September 1 of each year. The
report must include detailed information concerning the
structure, operation, and financial condition of the local pool.
(7) Any other conditions that the corporation considers
appropriate.
Sec. 12. (a) As used in this section, "eligible entity" means any
partnership, unincorporated association, corporation, or limited
liability company, whether or not operated for profit, that is
established for the purpose of establishing a local investment pool.
(b) A local investment pool may be established only by an
eligible entity. A political subdivision may participate in the
establishment of an eligible entity but may not be the sole member
of the eligible entity.
(c) The articles of incorporation or bylaws of the eligible entity,
as appropriate, must provide the following:
(1) The exclusive purpose of the eligible entity is to establish
a local investment pool to:
(A) attract private equity investment to provide grants,
equity investments, loans, and loan guarantees for the
establishment or operation of businesses in Indiana; and
(B) provide a low to moderate rate of return to investors in
the short term, with higher rates of return in the long
term.
(2) The governing body of the eligible entity must include:
(A) persons who are qualified by professional background
and business experience to make sound financial and
investment decisions in the private sector; and
(B) representatives of nontraditional entrepreneurs.
(3) The eligible entity may receive funds from:
(A) equity investors;
(B) grants and loans from local units of government;
(C) grants and loans from the federal government;
(D) donations; and
(E) loans from the fund.
Sec. 13. (a) A local opportunity pool may be established only by
a nonprofit corporation or a for-profit corporation established for
that purpose. A political subdivision may participate in the
establishment of such a corporation but may not be the sole
member of the corporation.
(b) The articles of incorporation or bylaws of a corporation
described in subsection (a), as appropriate, must provide the
following:
(1) The exclusive purpose of the corporation described in
subsection (a) is to establish a local opportunity pool to:
(A) attract sources of funding other than private equity
investment to provide grants, loans, and loan guarantees
for the establishment or operation of nontraditional
entrepreneurial endeavors in Indiana; and
(B) enter into financing agreements that seek the return of
the principal amounts advanced by the pool, with the
potential for a greater return.
(2) The board of directors of the corporation described in
subsection (a) must include:
(A) persons who are actively engaged in Indiana in private
enterprise, organized labor, or state or local governmental
agencies and who are qualified by professional background
and business experience to make sound financial and
investment decisions in the private sector; and
(B) representatives of nontraditional entrepreneurs.
(3) The corporation described in subsection (a) may receive
funds from:
microenterprises.
(2) The scope of services provided by the microloan delivery
organization.
(3) The microloan delivery organization's plan for
coordinating the services and loans provided under this
chapter with those provided by commercial lending
institutions.
(4) The geographic representation of all regions of the state,
including both urban and rural communities and
neighborhoods.
(5) The microloan delivery organization's emphasis on
supporting female and minority entrepreneurs.
(6) The ability of the microloan delivery organization to
provide business training and technical assistance to
microenterprises.
(7) The ability of the microloan delivery organization to
monitor and provide financial oversight of recipients of
microloans.
(8) The sources and sufficiency of the microloan delivery
organization's operating funds.
Sec. 8. A grant received by a microloan delivery organization
may be used for the following purposes:
(1) To satisfy matching fund requirements for federal or
private grants.
(2) To establish a revolving loan fund from which the
microloan delivery organization may make loans to
microenterprises.
(3) To establish a guaranty fund from which the microloan
delivery organization may guarantee loans made by
commercial lending institutions to microenterprises.
(4) To pay the operating costs of the microloan delivery
organization. However, not more than ten percent (10%) of
a grant may be used for this purpose.
Sec. 9. Money appropriated to the program must be matched by
at least an equal amount of money derived from any of the
following nonstate sources:
(1) Private foundations.
(2) Federal sources.
(3) Local government sources.
(4) Quasi-governmental entities.
(5) Commercial lending institutions.
(6) Any other source whose funds do not include money
appropriated by the general assembly.
Sec. 10. At least fifty percent (50%) of the microloan money
disbursed by a microloan delivery organization must be disbursed
in microloans that do not exceed ten thousand dollars ($10,000).
Sec. 11. The corporation may prescribe standards, procedures,
and other guidelines to implement this chapter.
Sec. 12. The corporation may use money in the microenterprise
partnership program fund established by IC 5-28-18-7 or any other
money available to the council to carry out this chapter.
Sec. 13. Before August 1 of each year, the corporation shall
submit to the budget committee a supplemental report on a
longitudinal study:
(1) describing the economic development outcomes resulting
from microloans made under this chapter; and
(2) evaluating the effectiveness of the microloan delivery
organizations and the microloans made under this chapter in:
(A) expanding employment and self-employment
opportunities in Indiana; and
(B) increasing the incomes of persons employed by
microenterprises.
Chapter 20. Small and Minority Business Financial Assistance
Program
Sec. 1. As used in this chapter, "approved lender" means any:
(1) lending institution; or
(2) bank, trust company, building and loan association, or
credit union;
that is approved by the corporation as a lender under this chapter.
Sec. 2. As used in this chapter, "fund" refers to the
microenterprise partnership program fund established by
IC 5-28-18-7.
Sec. 3. As used in this chapter, "loan" means a direct loan from
the fund.
Sec. 4. As used in this chapter, "minority business" means an
individual, a partnership, a corporation, a limited liability
company, or a joint venture of any kind that is owned and
controlled by one (1) or more persons who are:
(1) United States citizens; and
(2) members of a minority group.
Sec. 5. As used in this chapter, "minority group" means:
(1) blacks;
(2) American Indians;
(3) Hispanics;
which space may be leased by a tenant and in which management
provides access to business development services for use by
tenants.
Sec. 4. As used in this chapter, "sponsor" means an organization
that enters into a written agreement with the corporation to:
(1) establish, operate, and administer a small business
incubator; or
(2) provide funding to an organization that operates a small
business incubator.
Sec. 5. As used in this chapter, "tenant" means a sole
proprietorship, partnership, limited liability company, or
corporation operating a business and occupying space in an
incubator.
Sec. 6. (a) The small business incubator fund is established
within the state treasury. The fund is a revolving fund. The fund
shall be used to provide grants, loans, and loan guarantees under
this chapter.
(b) The fund consists of appropriations from the general
assembly and loan repayments.
(c) The corporation shall administer the fund. The following
may be paid from money in the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry
out the purposes of this chapter.
(d) 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 may be invested. Interest that
accrues from these investments shall be deposited in the state
general fund.
(e) Repayments of loans from the fund, including interest, shall
be deposited in the fund.
(f) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 7. A political subdivision (as defined in IC 36-1-2-13), a
nonprofit organization, or a for-profit organization may submit an
application to the corporation to obtain a grant, loan, or loan
guarantee to establish a small business incubator. The application
must:
(1) describe the facility that is to be converted to an
incubator;
(2) specify the cost of the conversion;
(3) demonstrate the ability of the applicant to directly provide
or arrange for the provision of business development services
(including financial consulting assistance, management and
marketing assistance, and physical services) for tenants of the
incubator;
(4) demonstrate a potential for sustained use of the incubator
by eligible tenants through a market study or other means;
(5) demonstrate the ability of the applicant to operate the
incubator in accordance with section 19 of this chapter;
(6) state that the applicant will not discriminate against an
employee or applicant for employment on the basis of race,
religion, color, national origin, sex, or age; and
(7) include any other information required by the
corporation.
Sec. 8. The corporation shall award grants, loans, and loan
guarantees based on the following criteria:
(1) The ability of the applicant to comply with section 19 of
this chapter.
(2) The economic impact of the incubator on the community.
(3) Conformance with any areawide and local economic
development plans.
(4) The location of the incubator, in order to encourage
geographic distribution of incubators throughout Indiana.
(5) Other criteria established by the corporation.
Sec. 9. Grants and loans awarded or guaranteed under this
chapter may be used only for the following purposes, when
necessary for the creation and operation of an incubator:
(1) The acquisition and leasing of land and existing buildings.
(2) The construction or rehabilitation of buildings or other
facilities.
(3) The purchase of equipment and furnishings.
(4) The payment of operating expenses of the incubator
during the first twenty-four (24) months of its operation.
Sec. 10. A grant under this chapter may not exceed the lesser of:
(1) fifty percent (50%) of the total eligible project costs; or
(2) two hundred fifty thousand dollars ($250,000).
Sec. 11. An applicant for a grant may only use the grant in an
economically disadvantaged area.
Sec. 12. A loan or loan guarantee under this chapter may not
exceed the lesser of:
(1) fifty percent (50%) of the total eligible project costs; or
(2) five hundred thousand dollars ($500,000).
Sec. 13. An applicant may apply for both a grant and a loan or
loan guarantee, but the combined grant and loan or loan guarantee
may not exceed five hundred thousand dollars ($500,000).
Sec. 14. (a) A loan under this chapter must be secured by liens
on collateral at the highest level of priority that can accommodate
the borrower's ability to raise sufficient debt and equity capital.
(b) A financial institution holding an obligation that is
guaranteed under this chapter must adequately secure the
obligation.
Sec. 15. A grant, loan, or loan guarantee for an incubator in a
facility that is leased may be made only if the applicant intends to
buy the facility. A loan or loan guarantee must be secured by a
leasehold mortgage.
Sec. 16. The corporation may defer payment of interest and
principal on a loan under this chapter for not more than two (2)
years.
Sec. 17. In order to establish a rate of interest for a loan under
this chapter, the corporation shall select a nationally recognized
index of municipal bond averages and a date not less than one (1)
month nor more than two (2) months before the granting of the
loan. The rate of interest on the loan must be one percent (1%) less
than the average published on the date closest to the selected date
by the selected nationally recognized index, rounded to the next
lowest whole percent. The corporation may determine that the
rounding down should be to a fraction of a percent that is a
multiple of either one-tenth of one percent (0.1%) or one-fourth of
one percent (0.25%).
Sec. 18. A loan or loan guarantee under this chapter may not
exceed the lesser of:
(1) ten (10) years; or
(2) the useful life of the property for which the loan is granted
or guaranteed, as determined by the United States
Department of the Treasury.
Sec. 19. A sponsor or an organization receiving assistance
through a sponsor has the following duties in establishing and
operating a small business incubator with assistance under this
chapter:
(1) Securing title to the facility or leasing the facility with the
intent to secure title.
(2) Managing the physical development of the incubator
facility, including the provision of common conference or
meeting space.
(3) Furnishing and equipping the facility to provide business
services to the tenants.
(4) Marketing the facility and securing eligible tenants.
(5) Providing or arranging for the provision of financial
consulting, assistance in accessing private financial markets,
and marketing and management assistance services for the
tenants.
(6) Establishing rental and service fees.
(7) Encouraging the sharing of ideas among tenants and
aiding the tenants in an innovative manner while they are
within the incubator.
(8) Establishing policies for the:
(A) acceptance of tenants into the incubator; and
(B) termination of occupancy by tenants.
(9) Encouraging the establishment of small business
incubators in economically disadvantaged areas. However, if
the small business incubator secures only a loan or loan
guarantee under this chapter, this subdivision does not limit
the establishment of the small business incubator to
economically disadvantaged areas.
(10) Establishing a local advisory committee to assist in the
performance of the duties listed in this section. Advisory
committee members must represent fields that can contribute
to the sound operation of the incubator, such as accounting,
finance, law, education, and small business. Advisory
committee members may not vote on projects of sponsors or
tenants with whom the member is financially affiliated.
Sec. 20. The corporation has the following duties under this
chapter:
(1) Making grants, loans, and loan guarantees to sponsors for
small business incubators.
(2) Ensuring that sponsors receiving grants, loans, or loan
guarantees meet the conditions of this chapter.
(3) Receiving and evaluating annual reports from sponsors.
These reports must include a financial statement for the
incubator, evidence that all the tenants in the incubator are
eligible under the terms of this chapter, a list of tenants in the
incubator, and any other information required by the
corporation.
(4) Establishing policies to implement this chapter. These
policies must include provisions permitting greater flexibility
with respect to the establishment and operation of incubators
in the areas described in section 19(9) of this chapter,
including more flexible tenant policies.
Sec. 21. Before July 2 each year, the corporation shall provide
the legislative council and the governor with a report that includes
the following information:
(1) The number of applications for incubators received by the
corporation.
(2) The number of applications for incubators approved by
the corporation.
(3) The number of incubators created under this chapter.
(4) The number of tenants occupying each incubator.
(5) The occupancy rate of each incubator.
(6) The number of jobs provided by each incubator and the
tenants of each incubator.
(7) The number of firms still operating in Indiana after
leaving incubators and the number of jobs provided by those
firms. The corporation shall attempt to identify the reasons
firms that were established in an incubator have moved to
another state.
The report to the legislative council must be in an electronic format
under IC 5-14-6.
Sec. 22. The corporation may establish one (1) or more advisory
committees to assist the corporation in implementing this chapter.
Advisory committee members may not be affiliated financially with
a sponsor or tenant and must represent fields that can contribute
to the sound operation of the incubator program (such as
accounting, finance, law, education, and small business).
Chapter 22. Film Industry Development
Sec. 1. The corporation shall encourage the filming of:
(1) motion pictures at sites in Indiana; and
(2) television shows, commercials, and other audiovisual
communications in Indiana.
Sec. 2. (a) The corporation shall:
(1) establish a close working relationship with film industry
representatives in the United States and abroad, if
appropriate;
(2) coordinate locational activities in Indiana;
(3) provide liaison activities during actual film production;
(4) perform all appropriate research and background work
related to the determination of film industry plans and
requirements; and
(5) establish an aggressive promotional and informational
effort designed to attract film producers to Indiana.
universities in Indiana and of private enterprises to
coordinate research and development programs that will,
consistent with the primary educational function of the
universities, aid in the creation of new jobs in Indiana.
(8) Assist in financing the establishment and continued
development of technology intensive businesses in Indiana.
(9) Advise universities of the research needs of Indiana
businesses and improve the exchange of scientific and
technological information for the mutual benefit of
universities and private businesses.
(10) Coordinate programs established by universities to
provide Indiana businesses with scientific and technological
information.
(11) Establish programs in scientific education that will
support the accelerated development of technology intensive
businesses in Indiana.
(12) Provide financial assistance through contracts, grants,
and loans to programs of scientific and technological research
and development.
(13) Determine how public universities can increase income
derived from the sale or licensure of products or processes
having commercial value that are developed as a result of
university sponsored research programs.
Sec. 2. Debts incurred by the business modernization and
technology corporation under authority of IC 4-3-1 (before its
repeal) do not represent or constitute a debt of the state within the
meaning of the Constitution of the State of Indiana or Indiana
statutes. The corporation may not incur debt under this chapter.
However, the corporation shall assume the debt of the business
modernization and technology corporation that is outstanding on
the date the business modernization and technology corporation is
abolished.
Sec. 3. The corporation shall consider projects involving the
creation of the following:
(1) Markets for products made from recycled materials.
(2) New products made from recycled materials.
Chapter 24. Investment Incentive Program
Sec. 1. As used in this chapter, "municipality" means a city or
town.
Sec. 2. The corporation shall establish policies to carry out an
investment incentive program. The purpose of the program is to
provide grants and loans to counties and municipalities that will,
in turn, be loaned to certain new or expanding businesses for
construction or for the purchase of real or personal property.
Sec. 3. (a) The corporation shall adopt policies and guidelines to
establish the criteria for awarding grants and loans to counties and
municipalities.
(b) The criteria for awarding the grants and loans must include
the:
(1) economic need of the county or municipality;
(2) impact of the new or expanding business on employment
and output in the county or municipality;
(3) importance of state participation to the investment
decision;
(4) impact of state assistance to job production in the county
or municipality; and
(5) extent of other public and private participation.
Sec. 4. (a) The corporation shall establish criteria to guide
counties and municipalities in making loans to businesses.
(b) The terms of the loans must include provisions stating that:
(1) loans shall be restricted to enterprises that create new and
permanent jobs;
(2) loans may not exceed the greater of:
(A) ten percent (10%) of the total investment; or
(B) two hundred fifty thousand dollars ($250,000); and
(3) the principal and interest on the loan must be repaid to the
county or municipality.
(c) All loans by a county or municipality under this chapter are
subject to approval by the corporation.
Sec. 5. The corporation may:
(1) adopt policies and guidelines to carry out this chapter;
(2) accept money and other things of value from all sources;
(3) provide services and materials to carry out the purposes
of the program;
(4) evaluate the program; and
(5) involve other entities, by contract or otherwise, in carrying
out the purposes of the program.
Sec. 6. (a) The repayment proceeds of a loan made from a grant
under this chapter shall be used by the county or municipality for
any economic or community development activity, including:
(1) making loans to businesses; and
(2) the construction or reconstruction of any street, sewer, or
other capital improvement that will promote economic
development in the community or the repayment of bonds
used to finance the construction or reconstruction.
(b) All uses of repaid loan proceeds by a county or municipality
under this chapter are subject to approval by the corporation.
Sec. 7. The corporation may not make a grant from state
appropriated funds to a county or municipality under this chapter
unless the county or municipality agrees to lend to the new or
expanding business an amount greater than or equal to the state
grant.
Sec. 8. (a) A loan to a county or municipality made under this
chapter is not a general obligation of the county or municipality
and is payable solely from revenues derived from the new or
expanding business.
(b) Before making a loan to a county or municipality, the
corporation shall determine that there is reasonable assurance that
the loan will be repaid. In making this determination, the
corporation shall consider:
(1) the financial condition of the business;
(2) the financial feasibility of the expansion being undertaken
by the business;
(3) the adequacy of collateral for the loan; and
(4) any other information that the corporation considers
relevant to its determination.
Sec. 9. (a) The investment incentive fund is established within
the state treasury to provide grants and loans to counties and
municipalities.
(b) The fund consists of appropriations from the general
assembly and loan repayments.
(c) The corporation shall administer the fund. The following
may be paid from money in the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry
out the purposes of this chapter.
(d) Earnings from loans made under this chapter shall be
deposited the fund.
(e) 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 may be invested. Interest that
accrues from these investments shall be deposited in the state
general fund.
Chapter 25. Industrial Development Grant Fund
Sec. 1. As used in this chapter, "eligible entity" means:
(1) a city;
sources, including, on behalf of the state, grants from agencies and
instrumentalities of the United States.
(c) The fund consists of appropriations from the general
assembly.
(d) The corporation shall administer the fund. The following
may be paid from money in the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry
out the purposes of this chapter.
(e) 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.
(f) 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 may be invested. Interest that
accrues from these investments shall be deposited in the state
general fund.
Sec. 5. (a) The secretary of commerce, subject to the approval
of the governor and budget director, may direct the auditor of state
to make an approved grant from the fund to an eligible entity.
(b) The money granted must be used by the recipient to institute
and administer an approved industrial development program.
inventory at the location on the assessment date before the date
that the substantial reduction began, minus:
(A) the assessed value of the inventory at the location on the
current assessment date if the substantial reduction has not
been completed as of that date; or
(B) the assessed value of the inventory at the location on the
assessment date immediately preceding the date that the
substantial reduction was completed.
The amount of the industrial recovery site inventory value as computed
under this subsection may not be less than zero (0).
by resolution waive failure to file a:
(1) timely; or
(2) complete;
credit application under section 2.5 of this chapter. Before adopting a
waiver under this subsection, section, the urban enterprise association
shall conduct a public hearing on the waiver.
2002, or November 2002;
exceeds the sum of the taxpayer's property tax liability attributable to
the qualified taxing unit for property taxes payable in November 2001,
May 2002, and November 2002, the excess as received during any
calendar year or years shall be set aside and treated for the calendar
year when received as a levy excess subject to IC 6-1.1-18.5-17 or
IC 6-1.1-19-1.7. In calculating the payment of property taxes as
referred to in subdivision (2), the amount of property tax credit finally
allowed under IC 6-1.1-21-5 in respect to those taxes is considered to
be a payment of those property taxes.
project or that there is not a reasonable likelihood that a loan from the
industrial development fund will be approved under IC 4-4-8-5,
IC 5-28-9-12, the department corporation shall certify this
determination in writing to the fiscal body adopting the ordinance.
Upon this certification, the ordinance proposing to establish the
economic development district is void.
(d) If the department Indiana economic development corporation
preliminarily determines under subsection (b) that the proposed project
qualifies or will qualify as a qualified industrial development project
and that there is a reasonable likelihood that a loan from the industrial
development fund will be approved under IC 4-4-8-5, IC 5-28-9-12,
the department corporation shall certify this determination to the fiscal
body adopting the ordinance proposing to establish the economic
development district. Upon receipt of this certification, the fiscal body
shall proceed to take final action with respect to the ordinance in
accordance with section 3 of this chapter.
(e) A favorable preliminary certification under subsection (d) does
not, however, represent or constitute a final determination by the
department Indiana economic development corporation and state
board of finance as to whether the unit will obtain a loan from the
industrial development fund in accordance with IC 4-4-8. IC 5-28-9.
economic development district designation. All persons affected in any
manner by the hearing, including all taxpayers of the economic
development district, shall be considered notified of the pendency of
the hearing and of subsequent acts, hearings, adjournments, and orders
of the fiscal body affecting the economic development district if the
fiscal body gives the notice required by this section.
(b) A copy of the notice of the hearing shall be filed with the office
of the unit's plan commission, board of zoning appeals, works board,
park board, building commissioner, and any other departments, bodies,
or officers of the unit having to do with unit planning, variances from
zoning ordinances, land use, or the issuance of building permits.
(c) At the hearing, which may be recessed and reconvened from
time to time, the fiscal body shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
objections that have been filed. After considering the evidence
presented, the fiscal body shall take final action determining the public
utility and benefit of the proposed economic development district
designation and confirming, modifying and confirming, or rescinding
the ordinance. The final action taken by the fiscal body shall be
recorded and is final and conclusive, except that an appeal may be
taken in the manner prescribed by section 4 of this chapter.
property was partially completed on March 1, 1985, the unit may
provide in the declaratory ordinance that the taxes attributable to
the assessed value of the property as finally determined for March
1, 1984, shall be allocated to and, when collected, paid into the
funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all of the
property tax proceeds in excess of those described in subdivision
(1), as specified in the declaratory ordinance, shall be allocated to
the unit for the economic development district and, when
collected, paid into a special fund established by the unit for that
economic development district that may be used only to pay the
principal of and interest on obligations owed by the unit under
IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing of
industrial development programs in, or serving, that economic
development district. The amount not paid into the special fund
shall be paid to the respective units in the manner prescribed by
subdivision (1).
(3) When the money in the fund is sufficient to pay all
outstanding principal of and interest (to the earliest date on which
the obligations can be redeemed) on obligations owed by the unit
under IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing
of industrial development programs in, or serving, that economic
development district, money in the special fund in excess of that
amount shall be paid to the respective taxing units in the manner
prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic development
district under subsection (a)(2) must, subject to subsection (a)(3), be
irrevocably pledged by the unit for payment as set forth in subsection
(a)(2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
economic development district that is annexed by any taxing unit after
the effective date of the allocation provision of the declaratory
ordinance is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Notwithstanding any other law, each assessor shall, upon
petition of the fiscal body, reassess the taxable property situated upon
or in, or added to, the economic development district effective on the
next assessment date after the petition.
(e) Notwithstanding any other law, the assessed value of all taxable
property in the economic development district, for purposes of tax
limitation, property tax replacement (except as provided in
IC 6-1.1-21-3(c), IC 6-1.1-21-4(a)(3), and IC 6-1.1-21-5(c)), and
formulation of the budget, tax rate, and tax levy for each political
subdivision in which the property is located is the lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(f) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment under IC 6-1.1-4, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the district under this section.
However, the adjustment may not include the effect of property tax
abatements under IC 6-1.1-12.1.
(g) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on depreciable
personal property that the unit has by ordinance allocated to the
economic development district. However, the ordinance may not
limit the allocation to taxes on depreciable personal property with
any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to an
economic development district property taxes imposed under IC 6-1.1
on depreciable personal property that has a useful life in excess of eight
(8) years, the ordinance continues in effect until an ordinance is
adopted by the unit under subdivision (2).
(h) As used in this section, "base assessed value" means:
(1) the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective date
of the allocation provision of the declaratory resolution, as
adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for any assessment date after the effective date
of the allocation provision.
Subdivision (2) applies only to economic development districts
established after June 30, 1997, and to additional areas established
after June 30, 1997.
taxable year in which a taxpayer is entitled to use the credit carryover
that results from those wages under subsection (c), then the taxpayer
may use the credit carryover for any taxable year up to and including
the taxable year in which the enterprise zone terminates.
(f) A taxpayer is not entitled to a refund of any unused credit.
(g) A taxpayer that:
(1) does not own, rent, or lease real property outside of an
enterprise zone that is an integral part of its trade or business; and
(2) is not owned or controlled directly or indirectly by a taxpayer
that owns, rents, or leases real property outside of an enterprise
zone;
is exempt from the allocation and apportionment provisions of this
section.
(h) If a pass through entity is entitled to a credit under subsection (b)
but does not have state tax liability against which the tax credit may be
applied, an individual who is a shareholder, partner, beneficiary, or
member of the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive income
to which the shareholder, partner, beneficiary, or member is
entitled.
The credit provided under this subsection is in addition to a tax credit
to which a shareholder, partner, beneficiary, or member of a pass
through entity is entitled. However, a pass through entity and an
individual who is a shareholder, partner, beneficiary, or member of a
pass through entity may not claim more than one (1) credit for the
qualified expenditure.
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive income
to which the shareholder, partner, beneficiary, or member is
entitled.
The credit provided under this subsection is in addition to a tax credit
to which a shareholder, partner, beneficiary, or member of a pass
through entity is entitled. However, a pass through entity and an
individual who is a shareholder, partner, beneficiary, or member of a
pass through entity may not claim more than one (1) credit for the
qualified expenditure.
advice to aid in the physical or economic improvement of any part
or all of an economically disadvantaged area; or
(2) furnishing technical advice to promote higher employment in
any neighborhood in Indiana.
"Neighborhood organization" means any organization, including but
not limited to a nonprofit development corporation:
(1) performing community services in an economically
disadvantaged area; and
(2) holding a ruling:
(A) from the Internal Revenue Service of the United States
Department of the Treasury that the organization is exempt
from income taxation under the provisions of the Internal
Revenue Code; and
(B) from the department of state revenue that the organization
is exempt from income taxation under IC 6-2.5-5-21.
"Person" means any individual subject to Indiana gross or adjusted
gross income tax.
"State fiscal year" means a twelve (12) month period beginning on
July 1 and ending on June 30.
"State tax liability" means the taxpayer's total tax liability that is
incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and
(2) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, under
IC 6-3.1-1-2, are to be applied before the credit provided by this
chapter.
"Tax credit" means a deduction from any tax otherwise due and
payable under IC 6-3 or IC 6-5.5.
community services agency and the commissioner of revenue, may
adopt rules for the approval or disapproval of these proposals.
to a credit, a taxpayer must request the department of commerce
Indiana economic development corporation to determine:
(1) whether a purchase of an ownership interest in a business
located in an enterprise zone is a qualified investment; and
(2) the percentage credit to be allowed.
The request must be made before a purchase is made.
(b) The department of commerce Indiana economic development
corporation shall find that a purchase is a qualified investment if:
(1) the business is viable;
(2) the business has not been disqualified from enterprise zone
incentives or benefits under IC 4-4-6.1; IC 5-28-15;
(3) the taxpayer has a legitimate purpose for purchase of the
ownership interest;
(4) the purchase would not be made unless a credit is allowed
under this chapter; and
(5) the purchase is critical to the commencement, enhancement,
or expansion of business operations in the zone and will not
merely transfer ownership, and the purchase proceeds will be
used only in business operations in the enterprise zone.
The department Indiana economic development corporation may
delay making a finding under this subsection if, at the time the request
is filed under subsection (a), an urban enterprise zone association has
made a recommendation that the business be disqualified from
enterprise zone incentives or benefits under IC 4-4-6.1 IC 5-28-15 and
the enterprise zone board of the Indiana economic development
corporation has not acted on that request. The delay by the department
Indiana economic development corporation may not last for more
than sixty (60) days.
(c) If the department of commerce Indiana economic development
corporation finds that a purchase is a qualified investment, the
department shall certify the percentage credit to be allowed under this
chapter based upon the following:
(1) A percentage credit of ten percent (10%) may be allowed
based upon the need of the business for equity financing, as
demonstrated by the inability of the business to obtain debt
financing.
(2) A percentage credit of two percent (2%) may be allowed for
business operations in the retail, professional, or
warehouse/distribution codes of the SIC Manual.
(3) A percentage credit of five percent (5%) may be allowed for
business operations in the manufacturing codes of the SIC
Manual.
the purchase proceeds will be used only in business operations
in the qualified area; and
(B) in the case of an investment described in section 4(2) of
this chapter, the investment will not be made in a business that
substantially reduces or ceases its operations at another
location in Indiana in order to relocate its operations within the
qualified area, as described in section 13 of this chapter.
(d) If the department of commerce Indiana economic development
corporation finds that a purchase or other investment is a qualified
investment, the department of commerce corporation shall certify the
percentage credit to be allowed under this chapter based upon the
following:
(1) For a purchase described in section 4(1) of this chapter, a
percentage credit of ten percent (10%) may be allowed based on
the need of the business for equity financing, as demonstrated by
the inability of the business to obtain debt financing.
(2) A percentage credit of two percent (2%) may be allowed for
purchases of or investments in business operations in the retail,
professional, or warehouse/distribution codes of the SIC Manual
(or corresponding sectors in the NAICS Manual).
(3) A percentage credit of five percent (5%) may be allowed for
purchases of or investments in business operations in the
manufacturing codes of the SIC Manual (or corresponding sectors
in the NAICS Manual).
(4) A percentage credit of five percent (5%) may be allowed for
purchases of or investments in high technology business
operations (as defined in IC 4-4-6.1-1.3). IC 5-28-15-1).
(5) A percentage credit may be allowed for jobs created during
the twelve (12) month period following the purchase of an
ownership interest in the business or other investment in the
business, as determined under the following table:
JOBS CREATED PERCENTAGE
Less than 11 jobs 1%
11 to 25 jobs 2%
26 to 40 jobs 3%
41 to 75 jobs 4%
More than 75 jobs 5%
(6) A percentage credit of five percent (5%) may be allowed if
fifty percent (50%) or more of the jobs created in the twelve (12)
month period following the purchase of an ownership interest in
the business or other investment in the business will be reserved
for residents in the qualified area.
cash grants, tax abatements, infrastructure improvements,
investment in facility rehabilitation, construction, and training
investments.
(12) The credit is not prohibited by section 16 of this chapter.
awarded for a project to create new jobs in Indiana, the credit amount
may not exceed the incremental income tax withholdings. However, the
credit amount claimed for a taxable year may exceed the taxpayer's
state tax liability for the taxable year, in which case the excess shall
may, at the discretion of the corporation, be refunded to the
taxpayer.
(b) For state fiscal years 2004 and 2005, the aggregate amount of
credits awarded under this chapter for projects to retain existing jobs
in Indiana may not exceed five million dollars ($5,000,000) per year.
obligations to a successor taxpayer.
(9) Any other performance conditions that the board corporation
determines are appropriate.
determines are appropriate.
(b) An agreement between an applicant and the board corporation
must be submitted to the budget committee for review and must be
approved by the budget agency before an applicant is awarded a credit
under this chapter for a project to retain existing jobs in Indiana.
pass through entity.
If the board corporation grants a refund directly to a pass through
entity under this subsection, the pass through entity shall claim the
refund on forms prescribed by the department of state revenue.
director shall submit a report on the evaluation to the governor, the
president pro tempore of the senate, and the speaker of the house of
representatives after June 30 and before November 1 in each
odd-numbered year.
as determined by the department of commerce, corporation,
in the county where the project for which the credit is granted
will be located.
(B) The organization must make an investment of at least fifty
million dollars ($50,000,000) in capital assets.
(C) The affected political subdivision must provide substantial
financial assistance to the project.
(D) The incremental payroll attributable to the project must be
at least ten million dollars ($10,000,000) annually.
(E) The organization agrees to pay the ad valorem property
taxes on the organization's real and personal property that
would otherwise be exempt under IC 6-1.1-10.
(F) The organization does not receive any deductions from the
assessed value of the organization's real and personal property
under IC 6-1.1-12 or IC 6-1.1-12.1.
(G) The organization pays all of the organization's ad valorem
property taxes to the taxing units in the taxing district in which
the project is located.
(H) The project for which the credit is granted must be located
in a county having a population of more than one hundred
eighty thousand (180,000) but less than one hundred
eighty-two thousand seven hundred ninety (182,790).
(b) Notwithstanding section 6(a) of this chapter, the board
corporation may award credits to an organization under subsection (a)
if:
(1) the organization met all other conditions of this chapter at the
time of the applicant's location or expansion decision;
(2) the applicant is in receipt of a letter from the department of
commerce stating an intent to pursue a credit agreement; and
(3) the letter described in subdivision (2) is issued by the
department of commerce not later than January 1, 2000.
manufacturing facilities;
(4) onsite infrastructure improvements;
(5) the construction of new manufacturing facilities;
(6) costs associated with retooling existing machinery and
equipment; and
(7) costs associated with the construction of special purpose
buildings and foundations for use in the computer, software,
biological sciences, or telecommunications industry;
that are certified by the department corporation under section 10 of
this chapter as being eligible for the credit under this chapter, if the
equipment, machinery, facilities improvements, facilities, buildings, or
foundations are installed or used for a project having an estimated total
cost of at least seventy-five million dollars ($75,000,000) and in a
county having a population of more than forty-three thousand (43,000)
but less than forty-five thousand (45,000).
taxpayer and to the department of state revenue a letter:
(1) certifying that the taxpayer is entitled to claim the credit under
this chapter for the expenditure; or
(2) stating the reason why the taxpayer is not entitled to claim the
credit.
extent that the costs result:
(1) from work performed in Indiana to build or refurbish a
riverboat; and
(2) in taxable income to any other Indiana taxpayer;
as determined under the standards adopted by the department of
commerce. Indiana economic development corporation.
following that occurs during the twelve (12) months before the
completion of the physical relocation of all or part of the activity
described in subdivision (1) from the nondistrict operation to the
district as compared with the twelve (12) months before that
twelve (12) months shall be considered a substantial reduction:
(A) A reduction in the average number of full-time or
part-time employees of the lesser of one hundred (100)
employees or twenty-five percent (25%) of all employees.
(B) A twenty-five percent (25%) reduction in the average
number of goods manufactured or produced.
(C) A twenty-five percent (25%) reduction in the average
value of services provided.
(D) A ten percent (10%) reduction in the average value of
stored inventory.
(E) A twenty-five percent (25%) reduction in the average
amount of gross income.
(b) Notwithstanding subsection (a), a taxpayer that would otherwise
be disqualified under subsection (a) is eligible for the credit provided
by this chapter if the taxpayer meets at least one (1) of the following
conditions:
(1) The taxpayer relocates all or part of its nondistrict operation
for any of the following reasons:
(A) The lease on property necessary for the nondistrict
operation has been involuntarily lost through no fault of the
taxpayer.
(B) The space available at the location of the nondistrict
operation cannot accommodate planned expansion needed by
the taxpayer.
(C) The building for the nondistrict operation has been
certified as uninhabitable by a state or local building authority.
(D) The building for the nondistrict operation has been totally
destroyed through no fault of the taxpayer.
(E) The renovation and construction costs at the location of the
nondistrict operation are more than one and one-half (1 1/2)
times the costs of purchase, renovation, and construction of a
facility in the district, as certified by three (3) independent
estimates.
(F) The taxpayer had existing operations in the district and the
nondistrict operations relocated to the district are an expansion
of the taxpayer's operations in the district.
A taxpayer is eligible for benefits and incentives under clause (C)
or (D) only if renovation and construction costs at the location of
the nondistrict operation are more than one and one-half (1 1/2)
times the cost of purchase, renovation, and construction of a
facility in the district. These costs must be certified by three (3)
independent estimates.
(2) The taxpayer has not terminated or reduced the pension or
health insurance obligations payable to employees or former
employees of the nondistrict operation without the consent of the
employees.
(c) The department shall cause to be delivered to the taxpayer and
to any person who testified before the department in favor of
disqualification of the taxpayer a copy of the department's proposed
order. The taxpayer and these persons shall be considered parties for
purposes of this section.
(d) A party who wishes to appeal the proposed order of the
department shall, within ten (10) days after the party's receipt of the
proposed order, file written objections with the department. The
department shall immediately forward copies of the objections to the
director of the budget agency and the director board of the department
of commerce. Indiana economic development corporation. A
hearing panel composed of the commissioner of the department or the
commissioner's designee, the director of the budget agency or the
director's designee, and the director president of the department of
commerce Indiana economic development corporation or the
director's president's designee shall set the objections for oral
argument and give notice to the parties. A party at its own expense may
cause to be filed with the hearing panel a transcript of the oral
testimony or any other part of the record of the proceedings. The oral
argument shall be on the record filed with the hearing panel. The
hearing panel may hear additional evidence or remand the action to the
department with instructions appropriate to the expeditious and proper
disposition of the action. The hearing panel may adopt the proposed
order of the department, may amend or modify the proposed order, or
may make such order or determination as is proper on the record. The
affirmative votes of at least two (2) members of the hearing panel are
required for the hearing panel to take action on any measure. The
taxpayer may appeal the decision of the hearing panel to the tax court
in the same manner that a final determination of the department may be
appealed under IC 33-3-5. IC 33-26.
(e) If no objections are filed, the department may adopt the proposed
order without oral argument.
(f) A determination that a taxpayer is not entitled to the credit
provided by this chapter as a result of a substantial reduction or
cessation of operations applies to credits that would otherwise arise in
the taxable year in which the substantial reduction or cessation occurs
and in all subsequent years.
Indiana; and
(5) is not engaged in a business involving:
(A) real estate;
(B) real estate development;
(C) insurance;
(D) professional services provided by an accountant, a lawyer,
or a physician;
(E) retail sales, except when the primary purpose of the
business is the development or support of electronic commerce
using the Internet; or
(F) oil and gas exploration.
(b) A business shall apply to be certified as a qualified Indiana
business on a form prescribed by the department of commerce. Indiana
economic development corporation.
(c) If a business is certified as a qualified Indiana business under
this section, the department of commerce Indiana economic
development corporation shall provide a copy of the certification to
the investors in the qualified Indiana business for inclusion in tax
filings.
(d) The department of commerce Indiana economic development
corporation may impose an application fee of not more than two
hundred dollars ($200).
2009.
the proposed investment within the period required under subsection
(d).
location after the credit is given will be at least equal to one
hundred fifty percent (150%) of the hourly minimum wage under
IC 22-2-2-4 or its equivalent.
entered into under this chapter during the preceding calendar year, a
description of the project that is the subject of each agreement, an
update on the status of projects under agreements entered into before
the preceding calendar year, and the sum of the credits awarded under
this chapter. A copy of the report shall be transmitted in an electronic
format under IC 5-14-6 to the executive director of the legislative
services agency for distribution to the members of the general
assembly.
governor.
(4) An individual representing the railroad industry appointed by
the governor.
(5) An individual representing persons interested in the
preservation of railroad corridors for recreational and other uses
appointed by the governor.
(6) An individual representing local government appointed by the
governor.
(7) An individual representing the utility industry appointed by
the governor.
(8) Two (2) individuals appointed by the governor, one (1) of
whom must be a property owner.
(9) The director secretary of the department of commerce or the
director's secretary's designee.
(b) In appointing members of the board, the governor shall appoint
members so that not more than five (5) members of the board belong
to the same political party.
performance of its duties and the execution of its powers under this
chapter. When the cost of any such contract for construction, or for the
purchase of equipment, materials or supplies, involves an expenditure
of more than five thousand dollars ($5,000), the department shall make
a written contract with the lowest and best bidder after advertisement
for not less than two (2) consecutive weeks in a newspaper of general
circulation in Marion County, Indiana, and in such other publications
as the department shall determine. Such notice shall state the general
character of the materials to be furnished, the place where plans and
specifications therefor may be examined, and the time and place of
receiving bids. Each bid shall contain the full name of every person or
company interested in it and shall be accompanied by a sufficient bond
or certified check on a solvent bank that if the bid is accepted a
contract will be entered into and the performance of its proposal
secured. The department may reject any and all bids. A bond with good
and sufficient surety, as shall be approved by the department, shall be
required of all contractors in an amount equal to at least fifty percent
(50%) of the contract price conditioned upon the faithful performance
of the contract.
(g) The department may fix and revise from time to time
periodically and charge and collect equitable rates, fees, rentals, or
other charges for the use of any airport facility or airport facilities
under its control, which rates, fees, rentals, or other charges shall be in
amounts reasonably related to the cost of providing and maintaining the
particular airport facility or airport facilities for which these rates, fees,
rentals, and other charges are established.
(h) The department may subject to IC 8-9.5-6-1, make application
for, receive, and accept from any federal agency, grants for or in aid of
the planning, construction, operating, or financing of any airport
facility, and to receive and accept contributions from any source of
either money, property, labor, or other things of value, to be held, used
and applied for the purposes for which made, in each case on such
terms and conditions as the department considers necessary or
desirable. also, to The department may enter into and carry out
contracts and agreements in connection with any of the foregoing. this
subsection.
(i) The department may appear in its own behalf before boards,
commissions, departments, or other agencies of the federal government
or of any state or international conference and before committees of the
Congress of the United States and the general assembly of Indiana in
all matters relating to the designs, establishment, construction,
extension, operations, improvements, repair, or maintenance of any
airport or airport facility operated and maintained by the department
under this chapter, and to appear before any federal or state agencies
in matters relating to air rates, airport services and charges,
differentials, discriminations, labor relations, trade practices, and all
other matters affecting the physical development of and the business
interest of the department and those it serves.
(j) The department may contract for the services of consulting
engineers, architects, attorneys, accountants, construction and financial
experts, and such other individuals as are necessary in its judgment.
However, the employment of an attorney shall be subject to such
approval of the attorney general as may be required by law.
(k) The department may do all things necessary and proper to
promote and increase commerce within its territorial jurisdiction,
including cooperation with civic, technical, professional, and business
organizations and associations and the Indiana department of
commerce. economic development corporation.
(l) The department may establish and maintain a traffic bureau for
the purpose of advising the department as to the airport's competitive
economic position with other airports.
(m) The department may contract for the use of any license, process,
or device, whether patented or not, which the department finds is
necessary for the operation of any airport facility, and may permit the
use thereof by any lessee on such terms and conditions as the
department may determine. The cost of such license, process, or device
may be included as part of the cost of the airport facility.
(n) The department may subject to IC 8-9.5-5-8(6), issue airport
revenue bonds and airport revenue funding bonds.
(o) The department may do all acts and things necessary or proper
to carry out the powers expressly granted in this chapter.
constituencies:
(A) One (1) representative of agriculture.
(B) One (1) representative of manufacturing employed by an
entity that holds an NPDES major permit.
(C) One (1) representative of environmental interests.
(D) One (1) representative of labor.
(E) One (1) representative of local government.
(F) One (1) health professional who holds a license to practice
in Indiana.
(G) One (1) representative of small business.
(H) One (1) representative of the general public, who cannot
qualify to sit on the board under any of the other clauses in this
subdivision.
(b) An individual appointed under subsection (a)(2) must possess
knowledge, experience, or education qualifying the individual to
represent the entity the individual is being recommended to represent.
under IC 13-27.5-2.
education and employment training. A report under this
subdivision must in an electronic format under IC 5-14-6.
(5) Study and develop a plan concerning the transition between
secondary level vocational education and postsecondary level
vocational education.
(6) Enter into agreements with the federal government that may
be required as a condition of receiving federal funds under the
Vocational Education Act (20 U.S.C. 2301 et seq.). An agreement
entered into under this subdivision is subject to the approval of
the budget agency.
public inspection in any manner revealing the individual's or the
employing unit's identity, except in obedience to an order of a court or
as provided in this section.
(c) A claimant at a hearing before an administrative law judge or the
review board shall be supplied with information from the records
referred to in this section to the extent necessary for the proper
presentation of the subject matter of the appearance. The commissioner
may make the information necessary for a proper presentation of a
subject matter before an administrative law judge or the review board
available to an agency of the United States or an Indiana state agency.
(d) The commissioner may release the following information:
(1) Summary statistical data may be released to the public.
(2) Employer specific information known as ES 202 data and data
resulting from enhancements made through the business
establishment list improvement project may be released to the
department of commerce Indiana economic development
corporation only for the following purposes:
(A) The purpose of conducting a survey.
(B) The purpose of aiding the officers or employees of the
department of commerce Indiana economic development
corporation in providing economic development assistance
through program development, research, or other methods.
(C) Other purposes consistent with the goals of the department
of commerce Indiana economic development corporation
and not inconsistent with those of the department.
(3) Employer specific information known as ES 202 data and data
resulting from enhancements made through the business
establishment list improvement project may be released to the
budget agency only for aiding the employees of the budget agency
in forecasting tax revenues.
(4) Information obtained from any person in the administration of
this article and the records of the department relating to the
unemployment tax or the payment of benefits for use by the
following governmental entities:
(A) department of state revenue; or
(B) state or local law enforcement agencies;
only if there is an agreement that the information will be kept
confidential and used for legitimate governmental purposes.
(e) The commissioner may make information available under
subsection (d)(1), (d)(2), or (d)(3) only:
(1) if:
(A) data provided in summary form cannot be used to identify
information relating to a specific employer or specific
employee; or
(B) there is an agreement that the employer specific
information released to the department of commerce Indiana
economic development corporation or the budget agency
will be treated as confidential and will be released only in
summary form that cannot be used to identify information
relating to a specific employer or a specific employee; and
(2) after the cost of making the information available to the
person requesting the information is paid under IC 5-14-3.
(f) In addition to the confidentiality provisions of subsection (b), any
information furnished by the claimant or an agent to the department to
verify a claim of domestic or family violence is confidential. This
information shall not be disclosed to the employer or any other person.
Disclosure is subject to the following restrictions:
(1) The claimant must be notified before any release of
information.
(2) Any disclosure is subject to redaction of unnecessary
identifying information, including the claimant's address.
(g) An employee:
(1) of the department who recklessly violates subsection (a), (c),
(d), (e), or (f); or
(2) of any governmental entity listed in subsection (d)(4) of this
chapter who recklessly violates subsection (d)(4) of this chapter;
commits a Class B misdemeanor.
(h) An employee of the department of commerce Indiana economic
development corporation or the budget agency who violates
subsection (d) or (e) commits a Class B misdemeanor.
lien on any property, franchise, rights, or privileges of the credit
corporation, without securing member or shareholder approval;
(4) lend money to, and guarantee, endorse, or act as surety on the
bonds, notes, contracts, or other obligations of, or otherwise assist
financially, any person, firm, corporation, limited liability
company, or association;
(5) establish and regulate the terms and conditions of transactions
entered into under subdivision (4) and the charges for interest and
services connected with those transactions;
(6) acquire any interest in the goodwill, business rights, real and
personal property, and other assets of any persons or corporations
and assume, undertake, or pay the obligations, debts, and
liabilities of that person or corporation;
(7) acquire improved or unimproved real estate for the purpose of
constructing industrial plants or other business establishments;
(8) acquire, construct, reconstruct, alter, repair, maintain, operate,
sell, convey, transfer, lease, or otherwise dispose of industrial
plants or business establishments;
(9) acquire, subscribe for, own, sell, hold, assign, transfer,
mortgage, pledge, or otherwise dispose of the stock, shares,
bonds, debentures, notes, or other securities and evidences of
interest in or indebtedness of any person or corporation and, while
the owner or holder of such a property interest, exercise all the
rights, powers, and privileges of ownership, including the right to
vote;
(10) acquire and dispose of an interest in any other type of real or
personal property, including any real or personal property
acquired by the corporation from time to time in the satisfaction
of debts or as a result of the enforcement of obligations;
(11) mortgage, pledge, or otherwise encumber any property, right,
or thing of value acquired by the credit corporation as security for
the payment of any part of the purchase price for the acquired
item;
(12) cooperate with and avail itself of the facilities of the United
States Department of Commerce, the Indiana department of
commerce, economic development corporation, and any other
similar state or federal governmental agencies;
(13) cooperate with, assist, and otherwise encourage organizations
in the various communities of Indiana in the promotion,
assistance, and development of the business prosperity and
economic well-being of those communities, Indiana, or any
political subdivision of Indiana;
governor, the Indiana economic development corporation, the
legislative council, and all political subdivisions that have
territory within the corridor on:
(A) the activities of the commission; and
(B) the progress of implementation of the comprehensive
master plan; and
(9) employ an executive director and other individuals that are
necessary to carry out the commission's duties.
An annual report under subdivision (8) to the legislative council must
be in an electronic format under IC 5-14-6.
parcel has not yet been transferred to the commission. After the
hearing, the commission may adopt a resolution directing the
department to take appropriate steps necessary to acquire the parcel
from the county and to transfer the parcel to the urban enterprise
association or to the community development corporation.
(h) A conveyance of property under this section shall be made in
accordance with section 22(i) of this chapter.
(i) An urban enterprise association that purchases or receives real
property under this section shall report the terms of the conveyance to
the enterprise zone board created under IC 4-4-6.1-1 of the Indiana
economic development corporation not later than thirty (30) days
after the date the conveyance of the property is made.
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a blighted area expires after June 30,
1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded portion part
of the area added after June 30, 1995.
(6) If an allocation area established in a blighted area before July
1, 1997, is expanded after June 30, 1997, the definition in
subdivision (2) applies to the expanded portion part of the area
added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
before January 1, 2006, may include a provision with respect to the
allocation and distribution of property taxes for the purposes and in the
manner provided in this section. A declaratory resolution previously
adopted may include an allocation provision by the amendment of that
declaratory resolution before January 1, 2006, in accordance with the
procedures required for its original adoption. A declaratory resolution
or an amendment that establishes an allocation provision after June 30,
1995, must specify an expiration date for the allocation provision that
may not be more than thirty (30) years after the date on which the
allocation provision is established. However, if bonds or other
obligations that were scheduled when issued to mature before the
specified expiration date and that are payable only from allocated tax
proceeds with respect to the allocation area remain outstanding as of
the expiration date, the allocation provision does not expire until all of
the bonds or other obligations are no longer outstanding. The allocation
provision may apply to all or part of the blighted area. The allocation
provision must require that any property taxes subsequently levied by
or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into an allocation fund for that allocation area that may be used by
the redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
39.5 of this chapter in the same year.
(J) Pay expenses incurred by the redevelopment commission
for local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The allocation fund may not be used for operating expenses of the
commission.
(3) Except as provided in subsection (g), before July 15 of each
year the commission shall do the following:
(A) Determine the amount, if any, by which the base assessed
value when multiplied by the estimated tax rate of the
allocation area will exceed the amount of assessed value
needed to produce the property taxes necessary to make, when
due, principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2).
(B) Notify the county auditor of the amount, if any, of the
amount of excess assessed value that the commission has
determined may be allocated to the respective taxing units in
the manner prescribed in subdivision (1). The commission
may not authorize an allocation of assessed value to the
respective taxing units under this subdivision if to do so would
endanger the interests of the holders of bonds described in
subdivision (2) or lessors under section 25.3 of this chapter.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the declaratory resolution is the
lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 4-4-6.1, IC 5-28-15, the unit that designated the
allocation area shall create funds as specified in this subsection. A unit
that has obligations, bonds, or leases payable from allocated tax
proceeds under subsection (b)(2) shall establish an allocation fund for
the purposes specified in subsection (b)(2) and a special zone fund.
Such a unit shall, until the end of the enterprise zone phase out period,
deposit each year in the special zone fund any amount in the allocation
fund derived from property tax proceeds in excess of those described
in subsection (b)(1) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(2) for the year. The amount sufficient for purposes specified in
subsection (b)(2) for the year shall be determined based on the pro rata
portion of such current property tax proceeds from the portion part of
the enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
unit that has no obligations, bonds, or leases payable from allocated tax
proceeds under subsection (b)(2) shall establish a special zone fund
and deposit all the property tax proceeds in excess of those described
in subsection (b)(1) in the fund derived from property tax proceeds in
excess of those described in subsection (b)(1) from property located in
the enterprise zone. The unit that creates the special zone fund shall use
the fund (based on the recommendations of the urban enterprise
association) for programs in job training, job enrichment, and basic
skill development that are designed to benefit residents and employers
in the enterprise zone or other purposes specified in subsection (b)(2),
except that where reference is made in subsection (b)(2) to allocation
area it shall refer for purposes of payments from the special zone fund
only to that portion part of the allocation area that is also located in the
enterprise zone. Those programs shall reserve at least one-half (1/2) of
their enrollment in any session for residents of the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment under IC 6-1.1-4, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the redevelopment district under this
section. However, the adjustment may not include the effect of property
tax abatements under IC 6-1.1-12.1, and the adjustment may not
produce less property tax proceeds allocable to the redevelopment
district under subsection (b)(2) than would otherwise have been
received if the general reassessment had not occurred. The department
of local government finance may prescribe procedures for county and
township officials to follow to assist the department in making the
adjustments.
another person or entity designated by the general assembly shall
submit a report on the evaluation to the governor, the president pro
tempore of the senate, and the speaker of the house of representatives
before December 1, 1999, and every fourth year thereafter. The report
submitted to the president pro tempore of the senate and the
speaker of the house of representatives must be in an electronic
format under IC 5-14-6.
indicating that at a designated time the commission will consider
selling or granting the parcel of real property under this section. The
notice must state the general location of the property, including the
street address, if any, or a common description of the property other
than the legal description.
(f) If the county agrees to transfer a parcel of real property to the
commission to be sold or granted under this section, the commission
may conduct a meeting to sell or grant the parcel to an urban enterprise
zone even though the parcel has not yet been transferred to the
commission. After the hearing, the commission may adopt a resolution
directing the department to take appropriate steps necessary to acquire
the parcel from the county and to transfer the parcel to the urban
enterprise association.
(g) A conveyance of property to an urban enterprise association
under this section shall be made in accordance with section 15(i) of this
chapter.
(h) An urban enterprise association that purchases or receives real
property under this section shall report the terms of the conveyance to
the enterprise zone board created under IC 4-4-6.1-1 of the Indiana
economic development corporation not later than thirty (30) days
after the date the conveyance of the property is made.
declaratory resolution or an amendment to a declaratory
resolution establishing a blighted area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a blighted area expires after June 30,
1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded portion part
of the area added after June 30, 1995.
(6) If an allocation area established in a blighted area before July
1, 1997, is expanded after June 30, 1997, the definition in
subdivision (2) applies to the expanded portion part of the area
added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter before
January 1, 2006, may include a provision with respect to the allocation
and distribution of property taxes for the purposes and in the manner
provided in this section. A resolution previously adopted may include
an allocation provision by the amendment of that resolution before
January 1, 2006, in accordance with the procedures required for its
original adoption. A declaratory resolution or an amendment that
establishes an allocation provision after June 30, 1995, must specify an
expiration date for the allocation provision that may not be more than
thirty (30) years after the date on which the allocation provision is
established. However, if bonds or other obligations that were scheduled
when issued to mature before the specified expiration date and that are
payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. The allocation provision may apply to all or part
of the blighted area. The allocation provision must require that any
property taxes subsequently levied by or for the benefit of any public
body entitled to a distribution of property taxes on taxable property in
the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into a special fund for that allocation area that may be used by the
redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
consolidated city to pay for local public improvements in that
allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) in that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility in that allocation area under any lease entered
into under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The special fund may not be used for operating expenses of the
commission.
(3) Before July 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the base assessed
value when multiplied by the estimated tax rate of the
allocated area will exceed the amount of assessed value
needed to provide the property taxes necessary to make, when
due, principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2) and subsection (g).
(B) Notify the county auditor of the amount, if any, of excess
assessed value that the commission has determined may be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
The commission may not authorize an allocation to the respective
taxing units under this subdivision if to do so would endanger the
interests of the holders of bonds described in subdivision (2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 4-4-6.1, IC 5-28-15, the unit that designated the
allocation area shall create funds as specified in this subsection. A unit
that has obligations, bonds, or leases payable from allocated tax
proceeds under subsection (b)(2) shall establish an allocation fund for
the purposes specified in subsection (b)(2) and a special zone fund.
Such a unit shall, until the end of the enterprise zone phase out period,
deposit each year in the special zone fund the amount in the allocation
fund derived from property tax proceeds in excess of those described
in subsection (b)(1) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(2) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(2) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) in the fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone. The unit that
creates the special zone fund shall use the fund, based on the
recommendations of the urban enterprise association, for one (1) or
more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(2). However, where reference is made in
subsection (b)(2) to the allocation area, the reference refers for
purposes of payments from the special zone fund only to that
portion part of the allocation area that is also located in the
enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment under IC 6-1.1-4, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the redevelopment district under this
section. However, the adjustment may not include the effect of property
tax abatements under IC 6-1.1-12.1, and the adjustment may not
produce less property tax proceeds allocable to the redevelopment
district under subsection (b)(2) than would otherwise have been
received if the general reassessment had not occurred. The department
of local government finance may prescribe procedures for county and
township officials to follow to assist the department in making the
adjustments.
of the allocation provision.
Except as provided in section 55 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property.
(b) A resolution adopted under section 40 of this chapter before
January 1, 2006, may include a provision with respect to the allocation
and distribution of property taxes for the purposes and in the manner
provided in this section. A resolution previously adopted may include
an allocation provision by the amendment of that resolution before
January 1, 2006, in accordance with the procedures required for its
original adoption. A declaratory resolution or an amendment that
establishes an allocation provision must be approved by resolution of
the legislative body of the excluded city and must specify an expiration
date for the allocation provision that may not be more than thirty (30)
years after the date on which the allocation provision is established.
However, if bonds or other obligations that were scheduled when
issued to mature before the specified expiration date and that are
payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. The allocation provision may apply to all or part
of the blighted area. The allocation provision must require that any
property taxes subsequently levied by or for the benefit of any public
body entitled to a distribution of property taxes on taxable property in
the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into a special fund for that allocation area that may be used by the
redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
taxes necessary to make, when due, principal and interest
payments on bonds described in subdivision (2) plus the
amount necessary for other purposes described in subdivision
(2) and subsection (g).
(B) Notify the county auditor of the amount, if any, of excess
assessed value that the commission has determined may be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
The commission may not authorize an allocation to the respective
taxing units under this subdivision if to do so would endanger the
interests of the holders of bonds described in subdivision (2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located, is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 4-4-6.1, IC 5-28-15, the unit that designated the
allocation area shall create funds as specified in this subsection. A unit
that has obligations, bonds, or leases payable from allocated tax
proceeds under subsection (b)(2) shall establish an allocation fund for
the purposes specified in subsection (b)(2) and a special zone fund.
Such a unit shall, until the end of the enterprise zone phase out period,
deposit each year in the special zone fund the amount in the allocation
fund derived from property tax proceeds in excess of those described
in subsection (b)(1) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(2) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(2) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) in the fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone. The unit that
creates the special zone fund shall use the fund, based on the
recommendations of the urban enterprise association, for one (1) or
more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in an enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(2). However, where reference is made in
subsection (b)(2) to the allocation area, the reference refers, for
purposes of payments from the special zone fund, only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment under IC 6-1.1-4, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the redevelopment district under this
section. However, the adjustment may not include the effect of property
tax abatements under IC 6-1.1-12.1, and the adjustment may not
produce less property tax proceeds allocable to the redevelopment
district under subsection (b)(2) than would otherwise have been
received if the general reassessment had not occurred. The department
of local government finance may prescribe procedures for county and
township officials to follow to assist the department in making the
adjustments.
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the military base reuse district and, when collected,
paid into an allocation fund for that allocation area that may be
used by the military base reuse district and only to do one (1) or
more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the military base reuse district
or any other entity for the purpose of financing or refinancing
military base reuse activities in or directly serving or
benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the reuse
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) Pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the reuse
authority. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district (as
defined in IC 6-1.1-1-20) that contains all or part of the
allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4 that is attributable
to the taxing district; by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2) levied in the taxing district that have been
allocated during that year to an allocation fund under this
section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
27 of this chapter in the same year.
(F) Pay expenses incurred by the reuse authority for local
public improvements or structures that were in the allocation
area or directly serving or benefiting the allocation area.
(G) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
The allocation fund may not be used for operating expenses of the
reuse authority.
(3) Except as provided in subsection (g), before July 15 of each
year the reuse authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2).
(B) Notify the county auditor of the amount, if any, of the
amount of excess property taxes that the reuse authority has
determined may be paid to the respective taxing units in the
manner prescribed in subdivision (1). The reuse authority may
not authorize a payment to the respective taxing units under
this subdivision if to do so would endanger the interest of the
holders of bonds described in subdivision (2) or lessors under
section 19 of this chapter. Property taxes received by a taxing
unit under this subdivision are eligible for the property tax
replacement credit provided under IC 6-1.1-21.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base reuse district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the military base reuse district for payment as
set forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the reuse authority, reassess the taxable property situated
upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 4-4-6.1, IC 5-28-15, the unit that designated the
allocation area shall create funds as specified in this subsection. A unit
that has obligations, bonds, or leases payable from allocated tax
proceeds under subsection (b)(2) shall establish an allocation fund for
the purposes specified in subsection (b)(2) and a special zone fund.
Such a unit shall, until the end of the enterprise zone phase out period,
deposit each year in the special zone fund any amount in the allocation
fund derived from property tax proceeds in excess of those described
in subsection (b)(1) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(2) for the year. The amount sufficient for purposes specified in
subsection (b)(2) for the year shall be determined based on the pro rata
part of such current property tax proceeds from the part of the
enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
unit that does not have obligations, bonds, or leases payable from
allocated tax proceeds under subsection (b)(2) shall establish a special
zone fund and deposit all the property tax proceeds in excess of those
described in subsection (b)(1) that are derived from property in the
enterprise zone in the fund. The unit that creates the special zone fund
shall use the fund (based on the recommendations of the urban
enterprise association) for programs in job training, job enrichment,
and basic skill development that are designed to benefit residents and
employers in the enterprise zone or other purposes specified in
subsection (b)(2), except that where reference is made in subsection
(b)(2) to allocation area it shall refer for purposes of payments from the
special zone fund only to that portion part of the allocation area that is
also located in the enterprise zone. The programs shall reserve at least
one-half (1/2) of their enrollment in any session for residents of the
enterprise zone.
(h) After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base assessed
value one (1) time to neutralize any effect of the general reassessment
on the property tax proceeds allocated to the military base reuse district
under this section. However, the adjustment may not include the effect
of property tax abatements under IC 6-1.1-12.1, and the adjustment
may not produce less property tax proceeds allocable to the military
base reuse district under subsection (b)(2) than would otherwise have
been received if the general reassessment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments.
contamination, drainage system, retention basin, pretreatment
facility, waterway, waterline, water storage facility, rail line,
electric, gas, telephone or other communications, or any other
type of utility line or pipeline, or other similar or related structure
or improvement, together with necessary easements for the
structure or improvement. Except for rail lines, utility lines, or
pipelines, the structures or improvements described in this
subdivision must be either owned or used by a public agency,
functionally connected to similar or supporting facilities owned
or used by a public agency, or designed and dedicated to use by,
for the benefit of, or for the protection of the health, welfare, or
safety of the public generally, whether or not used by a single
business entity. Any road, street, or bridge must be continuously
open to public access. A public facility must be located on public
property or in a public, utility, or transportation easement or
right-of-way.
(2) Land and other assets that are or may become eligible for
depreciation for federal income tax purposes for a business
incubator located in a certified technology park.
(3) Land and other assets that, if privately owned, would be
eligible for depreciation for federal income tax purposes for
laboratory facilities, research and development facilities,
conference facilities, teleconference facilities, testing facilities,
training facilities, or quality control facilities:
(A) that are or that support property whose primary purpose
and use is or will be for a high technology activity;
(B) that are owned by a public entity; and
(C) that are located within a certified technology park.
to subsection (b), the department of commerce Indiana economic
development corporation may designate a certified technology park
if the department corporation 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, a private research based institute, or a military
research and development or testing facility on an active United
States government military base or other military installation
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.
Indiana economic development corporation.
(2) A demonstration of a significant commitment by the
institution of higher education, private research based institute, or
military research and development or testing facility on an active
United States government military base or other military
installation 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 Indiana economic development
corporation 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.
termination or rescission of the designation of the area as a certified
technology park. The agreement must include the following provisions:
(1) A description of the area to be included within the certified
technology park.
(2) Covenants and restrictions, if any, upon all or a part of the
properties contained within the certified technology park and
terms of enforcement of any covenants or restrictions.
(3) The financial commitments of any party to the agreement and
of any owner or developer of property within the certified
technology park.
(4) The terms of any commitment required from an institution of
higher education or private research based institute for support of
the operations and activities within the certified technology park.
(5) The terms of enforcement of the agreement, which may
include the definition of events of default, cure periods, legal and
equitable remedies and rights, and penalties and damages, actual
or liquidated, upon the occurrence of an event of default.
(6) The public facilities to be developed for the certified
technology park and the costs of those public facilities, as
approved by the department of commerce. Indiana economic
development corporation.
a redevelopment commission may contract with each other or any third
party for these marketing services.
energy policy and any funds relating to energy policy under the control
or supervision of the department of commerce on June 30, 2005, the
effective date of this act, as determined by the budget agency, are
be transferred to the control or supervision of the office of energy
policy the lieutenant governor on July 1, 2005. the effective date of
this act.
(e) The legislative services agency shall prepare legislation for
introduction in the 2004 2006 regular session of the general assembly
to organize and correct statutes affected by the transfer of
responsibilities to the office of energy policy by this act. the lieutenant
governor.
(f) This SECTION expires January July 1, 2006. 2007.
to tourism promotion and community development of the department
of commerce. Any amounts owed to the department of commerce
before the effective date of this act under a program administered
under this SECTION on and after the effective date of this act by
the office of the lieutenant governor shall be payable to the office
of the lieutenant governor.
(d) Any appropriations to the department of commerce relating to
tourism and community development and funds relating to tourism and
community development under the control or supervision of the
department of commerce on June 30, 2005, the effective date of this
act, as determined by the budget agency, are transferred to the
control or supervision of the department office of tourism and
community development the lieutenant governor on July 1, 2005. the
effective date of this act.
(e) The legislative services agency shall prepare legislation for
introduction in the 2004 2006 regular session of the general assembly
to organize and correct statutes affected by the transfer of
responsibilities to the department of tourism and community
development by this act. lieutenant governor.
(f) This SECTION expires January July 1, 2006. 2007.
except property and obligations related to energy policy and tourism
and community development. Any amounts owed to the department
of commerce before the effective date of this act under a program
administered under this SECTION on and after the effective date
of this act by the Indiana economic development corporation shall
be payable to the Indiana economic development corporation.
(d) Any appropriations to the department of commerce and funds
under the control or supervision of the department of commerce related
to its economic development functions, except appropriations and
funds related to energy policy and tourism and community
development, on June 30, 2005, the effective date of this act, as
determined by the budget agency, are transferred to the Indiana
economic development corporation on January 1, 2005. the effective
date of this act. However, twenty thousand dollars ($20,000) of the
appropriations made to the department of commerce before the
effective date of this act shall on the effective date of this act be
transferred to the Indiana promotion fund established by
IC 5-28-5-12, as added by this act.
(e) Any reference in a law or other document to the department of
commerce or director of the department of commerce made before July
1, 2005, the effective date of this act and relating to its economic
development function shall be treated on and after June 30, 2005, the
effective date of this act as a reference to the Indiana economic
development corporation established by this act.
(f) The legislative services agency shall prepare legislation for
introduction in the 2004 2006 regular session of the general assembly
to organize and correct statutes affected by the transfer of
responsibilities to the Indiana economic development corporation by
this act.
(g) This SECTION expires January 2006. July 1, 2007.
fund board established by IC 4-4-5.1-6.
(5) The enterprise zone board established by IC 4-4-6.1-1.
(6) The Indiana film commission established by IC 4-4-13-1.
(7) The steel industry advisory commission established by
IC 4-4-16.5-2.
(c) The following apply on the effective date of this act:
(1) The powers and duties of a covered economic development
entity before it is abolished by subdivision (7) are transferred
to the corporation.
(2) A reference to a covered economic development entity in
a statute, rule, or other document is considered a reference to
the corporation.
(3) All the property of a covered economic development entity
is transferred to the corporation.
(4) Any appropriations to a covered economic development
entity and funds under the control or supervision of a covered
economic development entity that relate to economic
development, as determined by the budget agency, are
transferred to the corporation. Any appropriations to a
covered economic development entity relating to community
development, tourism, or energy, as determined by the budget
agency, and any funds relating to community development,
tourism, or energy, as determined by the budget agency, that
are under the control of a covered economic development
entity are transferred to the office of the lieutenant governor.
(5) All leases and obligations entered into by a covered
economic development entity before the effective date of this
act become leases and obligations of the corporation on the
effective date of this act.
(6) Any amounts owed to a covered economic development
entity before the effective date of this act are considered to be
owed to the corporation.
(7) Each covered economic development entity is abolished.
(d) The legislative services agency shall prepare legislation for
introduction in the 2006 regular session of the general assembly to
organize and correct statutes affected by the abolishment of the
department of commerce and the covered economic development
entities by this act.
(e) This SECTION expires July 1, 2007.
repeal by this act, expire on the effective date of this act.
(b) This SECTION expires July 1, 2007.