First Regular Session 116th General Assembly (2009)
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HOUSE ENROLLED ACT No. 1434
AN ACT to amend the Indiana Code concerning economic development.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-28-11.5; (09)HE1434.1.1. -->
SECTION 1. IC 5-28-11.5 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]:
Chapter 11.5. New Business Recruitment Grants for Local
Economic Development Organizations
Sec. 1. As used in this chapter, "economically disadvantaged
area" means a county that has an unemployment rate exceeding
the state unemployment rate by at least two percent (2%).
Sec. 2. As used in this chapter, "local economic development
organization" (referred to as "organization") includes the
following:
(1) An urban enterprise association established under
IC 5-28-15 (or IC 4-4-6.1 before its repeal).
(2) An economic development commission established under
IC 36-7-12.
(3) A nonprofit corporation established under state law whose
primary purpose is the promotion of industrial or business
development in Indiana, the retention or expansion of Indiana
businesses, or the development of entrepreneurial activities in
Indiana.
(4) A regional planning commission established under
IC 36-7-7.
(5) A nonprofit educational organization whose primary
purpose is educating and developing local leadership for
economic development initiatives.
(6) Other similar organizations whose purposes include
economic development and that are approved by the
corporation.
Sec. 3. As used in this chapter, "program" refers to the new
business recruitment grant program established by section 4 of this
chapter.
Sec. 4. (a) The new business recruitment grant program is
established.
(b) The program is administered by the corporation.
Sec. 5. (a) The purpose of the program is to assist the local
economic development organizations that serve economically
disadvantaged areas in the recruitment of new businesses.
(b) The corporation must find that an applicant for a grant
under this chapter serves an economically disadvantaged area
before approving the grant application.
(c) The corporation may provide a grant under the program to
an organization to assist the organization in recruiting new
business enterprises to the county or counties served by the
organization. The grant may not be used by the organization to pay
expenses for which the organization has received a grant under
IC 5-28-11.
(d) A grant under this chapter may not be used by the
organization to provide direct financial assistance to a business or
specific development project.
Sec. 6. 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. 7. The corporation may adopt policies and guidelines
governing application criteria and procedures for organizations
applying for grants under this chapter.
Sec. 8. Money appropriated for the program may be used for
the costs of administering this chapter.
Sec. 9. (a) The local economic development organization
recruitment fund is established within the state treasury as a
dedicated fund. Money in the fund must be spent by the
corporation exclusively for grants and other purposes described in
this chapter.
(b) The fund consists of:
(1) appropriations from the general assembly;
(2) interest deposited into the fund under subsection (d); and
(3) any money available for the purposes of this chapter from
Indiana's apportionment of general state assistance grants
provided to the states under the federal American Recovery
and Reinvestment Act of 2009 or another federal economic
stimulus law enacted in 2009.
(c) The corporation shall administer the fund. The following
may be paid from money in the fund:
(1) Grants made under this chapter.
(2) Expenses of administering the fund.
(3) The corporation's 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.
(e) Money remaining in the fund at the end of a state fiscal year
does not revert to the state general fund.