SB 23-39_ Filed 02/22/2010, 11:29 Delaney
Text Box
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
[
HOUSE MOTION ____
]
MR. SPEAKER:
I move that Engrossed Senate Bill 23 be amended to read as follows:
SOURCE: Page 1, line 1; (10)MO002311.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 5-20-7; (10)MO002311.1. -->
"SECTION 1. IC 5-20-7 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2010]:
Chapter 7. Microenterprise Partnership Program Fund
Sec. 1. As used in this chapter, "authority" refers to the Indiana
housing and community development authority created by
IC 5-20-1-3.
Sec. 2. As used in this chapter, "fund" refers to the
microenterprise partnership program fund established by section
3 of this chapter.
Sec. 3. The microenterprise partnership program fund is
established within the state treasury. The purpose of the fund is to
carry out the microenterprise partnership program under
IC 5-20-8.
Sec. 4. The fund consists of:
(1) appropriations from the general assembly;
(2) federal grants; and
(3) gifts.
Sec. 5. The authority 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 and IC 5-20-8.
Sec. 6. 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. Money in the fund at the end of a state fiscal year does
not revert to the state general fund.
Sec. 8. The fund is subject to an annual audit by the state board
of accounts. The full costs of the audit shall be paid from money in
the fund.
SOURCE: IC 5-20-8; (10)MO002311.2. -->
SECTION 2. IC 5-20-8 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2010]:
Chapter 8. Microenterprise Partnership Program
Sec. 1. As used in this chapter, "authority" refers to the Indiana
housing and community development authority created by
IC 5-20-1-3.
Sec. 2. As used in this chapter, "microenterprise" means a
business with fewer than five (5) employees. The term includes
startup, home based, and self-employed businesses.
Sec. 3. As used in this chapter, "microloan" means a business
loan of not more than twenty-five thousand dollars ($25,000).
Sec. 4. As used in this chapter, "microloan delivery
organization" means a community based or nonprofit program
that:
(1) has developed a viable plan for providing training, access
to financing, and technical assistance to microenterprises; and
(2) meets the criteria and qualifications set forth in this
chapter.
Sec. 5. As used in this chapter, "operating costs" refers to the
costs associated with administering a loan or a loan guaranty,
administering a revolving loan program, or providing business
training and technical assistance to a microloan recipient.
Sec. 6. As used in this chapter, "program" refers to the
microenterprise partnership program established under section 7
of this chapter.
Sec. 7. (a) The authority shall establish the microenterprise
partnership program to provide grants to microloan delivery
organizations.
(b) A grant provided under subsection (a) may not exceed
twenty-five thousand dollars ($25,000).
(c) A microloan delivery organization receiving a grant under
this section must use the grant for the purposes set forth in this
chapter.
Sec. 8. To establish the criteria for making a grant to a
microloan delivery organization, the authority shall consider the
following:
(1) The microloan delivery organization's plan for providing
business development services and microloans to
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 Indiana,
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. 9. 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. 10. 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. 11. 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. 12. The authority may prescribe standards, procedures,
and other guidelines to implement this chapter.
Sec. 13. The authority may use money in the microenterprise
partnership program fund established by IC 5-20-7-3 or any other
money available to the authority to carry out this chapter.
Sec. 14. Before August 1 of each year, the authority 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.
SOURCE: IC 5-28-17-1; (10)MO002311.3. -->
SECTION 3. IC 5-28-17-1, AS AMENDED BY P.L.56-2009,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2010]: 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, including:
(i) detailed information on the corporation's efforts to
support the development of small businesses under this
chapter; and
(ii) an evaluation of the results of the corporation's efforts to
encourage the development of small businesses under this
chapter; 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 small business development 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.
(7) (6) Assist small businesses in obtaining state and federal tax
incentives.
(8) (7) Maintain, through the Small Business Development
Centers, a statewide network of public, private, and educational
resources to, among other things, inform small businesses of the
state and federal programs under which they may obtain financial
assistance or realize reduced costs through programs such as the
small employer health insurance pooling program under
IC 27-8-5-16(8).
(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 small business development fund
established by IC 5-28-18.
(10) Coordinate state funded programs that assist the organization
and development of new enterprises.
SOURCE: IC 5-28-18-2; (10)MO002311.4. -->
SECTION 4. IC 5-28-18-2, AS ADDED BY P.L.4-2005, SECTION
34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2010]: Sec. 2. As used in this chapter, "fund" refers to the
microenterprise partnership program small business development
fund established by section 7 of this chapter.
SOURCE: IC 5-28-18-6; (10)MO002311.5. -->
SECTION 5. IC 5-28-18-6, AS ADDED BY P.L.4-2005, SECTION
34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2010]: Sec. 6. (a) The general assembly makes the following findings
of fact:
(1) There exists in Indiana an inadequate amount of locally
managed, pooled investment capital in the private sector available
to invest in new and existing business ventures, including
business ventures by nontraditional entrepreneurs.
(2) Investing capital and business management advice in new and
existing business ventures, including business ventures by
nontraditional entrepreneurs, will enhance economic development
and create and retain employment in Indiana. This investment will
enhance the health and general welfare of the people of Indiana,
and it constitutes a public purpose.
(3) Nontraditional entrepreneurs have not engaged in
entrepreneurship and self-employment to the extent found in the
mainstream of Indiana's population. Realizing the potential of
these nontraditional entrepreneurs will enhance Indiana's
economic vitality.
(b) It is the policy of the state to promote economic development
and entrepreneurial talent of Indiana's inhabitants by the creation of the
microenterprise partnership program small business development
fund for the public purpose of promoting opportunities for gainful
employment and business opportunities.
SOURCE: IC 5-28-18-7; (10)MO002311.6. -->
SECTION 6. IC 5-28-18-7, AS ADDED BY P.L.4-2005, SECTION
34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2010]: Sec. 7. (a) The microenterprise partnership program small
business development fund is established within the state treasury.
The fund is a revolving fund to:
(1) provide loans approved by the corporation under this chapter
and IC 5-28-17; and
(2) provide loans or loan guarantees under the small and minority
business financial assistance program established by
IC 5-28-20-9. and
(3) carry out the microenterprise partnership program under
IC 5-28-19.
(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 IC 5-28-19, and IC 5-28-20.
(d) Earnings from loans made under this chapter shall be deposited
in 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.
(f) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
(g) The fund is subject to an annual audit by the state board of
accounts. The fund shall bear the full costs of the audit.
(h) With respect to loans or loan guarantees made from the fund
before July 1, 2010, references in law or loan documents made to
the microenterprise partnership program fund before July 1, 2010,
shall be construed after June 30, 2010, as references to the small
business development fund.
SOURCE: IC 5-28-20-2; (10)MO002311.7. -->
SECTION 7. IC 5-28-20-2, AS ADDED BY P.L.4-2005, SECTION
34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2010]: Sec. 2. As used in this chapter, "fund" refers to the
microenterprise partnership program small business development
fund established by IC 5-28-18-7.".
SOURCE: Page 52, line 32; (10)MO002311.52. -->
Page 52, between lines 32 and 33, begin a new paragraph and insert:
SOURCE: IC 5-28-19; (10)MO002311.31. -->
"SECTION 31. IC 5-28-19 IS REPEALED [EFFECTIVE JULY 1,
2010].
SOURCE: ; (10)MO002311.32. -->
SECTION 32. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "authority" refers to the Indiana housing and
community development authority established by IC 5-20-1-3.
(b) As used in this SECTION, "corporation" refers to the
Indiana economic development corporation established by
IC 5-28-3-1.
(c) The corporation shall cooperate with the authority to
transfer the following from the corporation to the authority:
(1) Money in the microenterprise partnership program fund
under IC 5-28-18 designated for use by the microenterprise
partnership program under IC 5-28-19.
(2) Accounting records of grants made from the
microenterprise partnership program under IC 5-28-19.
(3) Files and any other data pertaining to grants made from
the microenterprise partnership program under IC 5-28-19.
(d) The authority shall deposit money transferred under
subsection (c)(1) in the microenterprise partnership program fund
established under IC 5-20-7, as added by this act.
(e) The transfers under subsection (c) shall be made as soon as
possible on July 1, 2010.
(f) This SECTION expires July 2, 2010.
SOURCE: ; (10)MO002311.33. -->
SECTION 33. [EFFECTIVE UPON PASSAGE]
(a) The definitions
in P.L.182-2009(ss), SECTION 1 apply throughout this SECTION.
(b) In addition to the appropriations made to the Indiana
economic development corporation by P.L.182-2009(ss), there is
appropriated one million five hundred thousand dollars
($1,500,000) to the Indiana economic development corporation for
the total operating expenses of the capital access program
established under IC 5-28-29 for the biennium beginning July 1,
2009, and ending June 30, 2011. The amount of the appropriation
is in addition to any amount allotted, encumbered, or expended
before the effective date of this SECTION for the capital access
program established under IC 5-28-29 or transferred before the
effective date of this SECTION to the reserve fund (as defined in
IC 5-28-29-12).
(c) The appropriations made to the Indiana economic
development corporation for the biennium beginning July 1, 2009,
and ending June 30, 2011, by P.L.182-2009(ss) are reduced by one
million five hundred thousand dollars ($1,500,000). The budget
agency shall exercise its authority under IC 4-12-1-12 to reassign
appropriations made to the Indiana economic development
corporation for the state fiscal year beginning July 1, 2009, and
ending June 30, 2010, and the state fiscal year beginning July 1,
2010, and ending June 30, 2011, to determine the specific line item
appropriations that must be reduced under this subsection to fund
the appropriation made by subsection (a).
(d) An amount appropriated under subsection (a) may not be
used for administrative expenses. However, up to two hundred fifty
thousand dollars ($250,000) of the amount appropriated by
subsection (a) shall be used to improve and carry out the
marketing program for the capital access program required under
IC 5-28-29-14(2). The remainder of the appropriation not used for
the marketing program shall be deposited in the reserve fund (as
defined in IC 5-28-29-12) and used in the biennium to provide
capital to businesses, particularly small and medium sized
businesses, to foster economic development in Indiana.
(e) Notwithstanding any other law, the amount appropriated
under subsection (a):
(1) may not be transferred or reassigned to another purpose
or fund;
(2) does not revert to the general fund or any other fund at the
end of a state fiscal year and remains available in subsequent
state fiscal years for the purposes of the capital access
program established under IC 5-28-29; and
(3) shall be allotted and expended for the purposes of the
capital access program established under IC 5-28-29.
IC 4-13-2-18(f) does not apply to an amount reassigned under this
SECTION or any other amount appropriated or allotted to the
purposes of the capital access program established under
IC 5-28-29.".
Renumber all SECTIONS consecutively.
(Reference is to ESB 23 as printed February 19, 2010.)
________________________________________
MO002311/DI 51 2010