Citations Affected: IC 5-28; IC 6-1.1-39.
Synopsis: Criteria for industrial development programs. Provides that,
in deciding whether to award a loan from the industrial development
fund, the economic development corporation (corporation) and the
state board of finance may not: (1) require evidence of preliminary
commitments to initiate or complete the program; or (2) base their
decision on such evidence. Requires the secretary of commerce, in
awarding grants from the industrial development grant fund, to use the
same standards used for loans from the industrial development fund.
Provides that grants may be awarded for the construction of utilities or
public infrastructure to improve the chance of securing future
commitments for an industrial development program. Provides that if
a unit adopts an ordinance after June 30, 2006, to create an economic
development district, a qualified industrial development project
proposed for the district is not required to be supported by certain
preliminary commitments. Provides that the corporation, in
determining whether to preliminarily authorize a district, may not base
its determination on the likelihood that a proposed project will be
initiated or accomplished. Updates references to certain federal
statutes.
Effective: July 1, 2006.
January 12, 2006, read first time and referred to Committee on Commerce, Economic
Development and Small Business.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
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. In
deciding whether to approve a program submitted for
approval after June 30, 2006, the state board of finance and
the corporation may not:
(A) require the qualified entity to provide evidence of
preliminary commitments that:
(i) are made by business enterprises, associations, state
or federal governmental units, or similar entities; and
(ii) demonstrate a reasonable likelihood that any project
or construction proposed as part of the program will be
initiated and accomplished; or
(B) base the decision whether to approve the program on
the presence or lack of any evidence described in clause
(A).
(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.
JULY 1, 2006]: Sec. 2. (a) If the fiscal body of a unit finds that:
(1) in order to promote opportunities for the gainful employment
of its citizens, the attraction of a new business enterprise to the
unit, the retention or expansion of a business enterprise existing
within the boundaries of the unit, or the preservation or
enhancement of the tax base of the unit, an area under the fiscal
body's jurisdiction should be declared an economic development
district;
(2) the public health and welfare of the unit will be benefited by
designating the area as an economic development district; and
(3) there has been proposed a qualified industrial development
project to be located in the economic development district, with
the proposal supported by:
(A) financial and economic data; and
(B) except as provided in subsection (d), preliminary
commitments by business enterprises, associations, state or
federal governmental units, or similar entities that evidence a
reasonable likelihood that the proposed qualified industrial
development project will be initiated and accomplished;
the fiscal body may on or before the adoption deadline determined
under subsection (c), adopt an ordinance declaring the area to be an
economic development district and declaring that the public health and
welfare of the unit will be benefited by the designation.
(b) For the purpose of adopting an ordinance under subsection (a),
it is sufficient to describe the boundaries of the area by its location in
relation to public ways or streams or otherwise as determined by the
fiscal body.
(c) The adoption deadline referred to in subsection (a) is determined
in the following manner:
(1) The initial adoption deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial adoption deadline and
subsequent adoption deadlines are automatically extended in
increments of five (5) years, so that adoption deadlines
subsequent to the initial adoption deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an adoption deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of adoption deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
adoption deadline.
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 5-28-9-12, the corporation shall certify
this determination to the fiscal body adopting the ordinance proposing
to establish the economic development district. For a proposed
project described in an ordinance adopted by a unit under section
2 of this chapter after June 30, 2006, the corporation may not base
the preliminary determination referred to in this subsection on any
determination made under subsection (b)(2). 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
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 5-28-9.