Introduced Version
SENATE BILL No. 4
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-1-30; IC 36-7-14.
Synopsis: Local workforce recruiting and retention. Authorizes a local
unit (county, municipality, town, township, or school corporation) to
establish a workforce retention and recruitment program (program) and
fund (fund) for the purposes of recruiting and retaining individuals who
will satisfy the current and future workforce needs of the unit's
employers or provide substantial economic impact to the unit,
including providing incentives in the form of grants or loans to
qualified workers. Defines "qualified worker" for purposes of the
program. Requires a qualified worker who receives a grant or loan from
the fund to enter into an incentive agreement. Authorizes the unit to
transfer money into the fund from other sources. Provides that the
executive of the unit shall administer the fund in coordination with a
workforce fund board of managers (workforce fund managers)
appointed by the executive of the unit. Requires the workforce fund
managers to annually submit a report setting out their activities during
the preceding calendar year to the executive of the unit, the fiscal body
of the unit, and the department of local government finance. Makes
conforming changes.
Effective: July 1, 2022.
Holdman
January 6, 2022, read first time and referred to Committee on Tax and Fiscal Policy.
2022 IN 4—LS 6734/DI 120 Introduced
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE BILL No. 4
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 36-1-30 IS ADDED TO THE INDIANA CODE AS
2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2022]:
4 Chapter 30. Workforce Retention and Recruitment Program
5 and Fund
6 Sec. 1. The general assembly declares that bolstering a local or
7 regional community's ability to recruit and retain individuals who
8 will satisfy the current and future workforce needs of its
9 employers, or provide a substantial economic impact to the
10 community, is an economic development priority of the state. The
11 financing of programs and strategies to recruit or retain these
12 individuals serves a public purpose and will be of benefit to the
13 general welfare of local governments and the state.
14 Sec. 2. As used in this chapter, "fund" means a workforce
15 retention and recruitment fund established by the fiscal officer of
16 a unit under section 10 of this chapter.
17 Sec. 3. As used in this chapter, "incentive agreement" means an
2022 IN 4—LS 6734/DI 120 2
1 agreement described in section 9(b) of this chapter.
2 Sec. 4. As used in this chapter, "program" means a workforce
3 retention and recruitment program established by the executive of
4 a unit under section 9(a) of this chapter.
5 Sec. 5. As used in this chapter, "qualified nonprofit
6 organization" means a private, nonprofit entity formed as a
7 partnership between one (1) or more units, private sector
8 businesses, or community or philanthropic organizations, to
9 develop and implement a workforce retention and recruitment
10 strategy that has an organizational structure that conforms with
11 the requirements of a policy developed by the workforce fund
12 managers under section 11 of this chapter.
13 Sec. 6. As used in this chapter, "qualified worker" means an
14 individual described in section 12 of this chapter.
15 Sec. 7. As used in this chapter, "unit" means a county,
16 municipality, town, township, or school corporation.
17 Sec. 8. As used in this chapter, "workforce fund managers"
18 means a workforce fund board of managers established by the
19 executive of a unit under section 11 of this chapter.
20 Sec. 9. (a) The executive of a unit may by resolution establish a
21 workforce retention and recruitment program for the purposes of
22 recruiting and retaining individuals who will satisfy the current
23 and future workforce needs of the unit's employers or provide
24 substantial economic impact to the unit, including providing
25 incentives in the form of grants or loans to qualified workers.
26 (b) A program must require each qualified worker that receives
27 a grant or loan from the fund to enter into an incentive agreement
28 with the workforce fund managers. An incentive agreement must
29 include the following terms:
30 (1) Each qualified worker must agree to reside within the unit
31 for not less than three (3) years following the date specified in
32 the agreement.
33 (2) If a qualified worker fails to fulfill the terms under
34 subdivision (1), the qualified worker must agree to
35 immediately pay into the fund:
36 (A) the total grant amount received under the program;
37 (B) the remaining balance of any loan made under the
38 program; or
39 (C) any amount determined by the workforce fund
40 managers through the incentive agreement.
41 Sec. 10. (a) If the executive of a unit establishes a program
42 under section 9 of this chapter, the fiscal officer of the unit shall
2022 IN 4—LS 6734/DI 120 3
1 establish a workforce retention and recruitment fund for the
2 purposes of the program.
3 (b) The fund shall consist of the following:
4 (1) Any private grants or contributions.
5 (2) Appropriations to the fund included in the unit's budget.
6 (3) Transfers of money to the fund under section 13 of this
7 chapter.
8 (4) Any repayments to the fund under section 9(b) of this
9 chapter.
10 (c) The executive of the unit shall administer the fund in
11 coordination with a workforce fund board of managers established
12 under section 11 of this chapter, including any qualified nonprofit
13 organization established by the workforce fund managers under
14 that section.
15 (d) Any money remaining in a fund at the end of the calendar
16 year does not revert to the unit's general fund.
17 Sec. 11. (a) The executive of a unit that establishes a program
18 under section 9 of this chapter shall appoint a five (5) member
19 workforce fund board of managers. The duties of the workforce
20 fund managers shall include:
21 (1) adopting rules and bylaws they consider necessary for the
22 proper conduct of their proceedings, the carrying out of other
23 duties, and the safeguarding of the money or property placed
24 in their custody;
25 (2) by resolution or in accordance with their rules and bylaws,
26 prescribing the date and manner of notice of their regular
27 meetings;
28 (3) identifying the most appropriate and fiscally responsible
29 incentives that will attract or retain individuals or families
30 who will satisfy the current and future workforce needs of the
31 unit's employers or provide substantial economic impact to
32 the unit;
33 (4) identifying the most appropriate and fiscally responsible
34 incentives that will attract or retain these individuals or
35 families;
36 (5) developing and implementing marketing strategies to
37 recruit or retain these individuals or families;
38 (6) identifying and recruiting applicants who may receive
39 incentives from the fund;
40 (7) establishing an application process for individuals and
41 families;
42 (8) evaluating applicants; and
2022 IN 4—LS 6734/DI 120 4
1 (9) offering incentives to qualified applicants.
2 (b) Three (3) of the workforce fund managers constitute a
3 quorum and the concurrence of three (3) of the workforce fund
4 managers is necessary to authorize any action.
5 (c) The workforce fund managers may establish a qualified
6 nonprofit organization for purposes of carrying out a program and
7 the purposes of a fund under this chapter.
8 Sec. 12. To qualify for a grant or loan from a fund an individual
9 must be:
10 (1) a graduate of an Indiana college or university who is a
11 resident of the unit, or relocates to a location within the unit,
12 and accepts and commences employment with an employer
13 located within the unit under the terms of an incentive
14 agreement;
15 (2) an out-of-state resident who relocates to a location within
16 the unit in order to accept and commence employment with
17 an employer located within the unit under the terms of an
18 incentive agreement;
19 (3) a resident of the unit who is employed by an employer
20 located within the unit, who has received a documented and
21 substantiated offer of employment from an out-of-state
22 employer and intends to accept the offer of employment and
23 move out-of-state, but who agrees instead to maintain the
24 individual's residency and employment within the unit under
25 the terms of an incentive agreement;
26 (4) a person who agrees to work remotely (regardless of
27 employer's domicile); or
28 (5) a person who agrees to work for an Indiana employer.
29 Sec. 13. (a) The fiscal body of a unit may transfer or deposit the
30 following into a fund:
31 (1) Any private grants or contributions.
32 (2) Appropriations to the fund included in the unit's budget.
33 (3) Notwithstanding any use of funds prohibition but so long
34 as the transfer or deposit is authorized by the relevant
35 statutory procedure:
36 (A) any surplus, unexpended, unappropriated,
37 unencumbered, or otherwise available, public or private
38 money; and
39 (B) from any general account, reverting or nonreverting
40 fund, special account, or trust, created or administered by
41 any department, board, authority, commission, political
42 subdivision, special service district, special taxing district,
2022 IN 4—LS 6734/DI 120 5
1 or any other instrumentality of local government under
2 IC 36 with authority to collect or receive bond proceeds,
3 taxes, interest, or any other public or private money.
4 (b) Notwithstanding any other statute, an executive of a unit
5 that has established a program under section 9 of this chapter,
6 after consulting with the fiscal body and fiscal officer of the unit,
7 may authorize a transfer or loan to a fund from any dedicated fund
8 or account before the purpose for which the dedicated fund or
9 account was established has been accomplished.
10 (c) Two (2) or more units may, by written agreement,
11 collaborate, commingle funds, or otherwise work together for the
12 benefit of administering or carrying out the purposes of the units'
13 funds.
14 Sec. 14. Any separate body corporate and politic or regional,
15 multicounty or metropolitan authority or commission may, by
16 written agreement, establish a mutually beneficial relationship
17 with one (1) or more units for purposes of administering or
18 carrying out the purposes of the unit's fund or units' funds.
19 Sec. 15. (a) Not later than April 15 of each year, the workforce
20 fund managers shall file with the executive of the unit and fiscal
21 body of the unit a report setting out their activities during the
22 preceding calendar year.
23 (b) The report of the workforce fund managers under this
24 section must show:
25 (1) the names of the then qualified and acting workforce fund
26 managers;
27 (2) the amount of the expenditures made during the preceding
28 year and their general purpose;
29 (3) the amount of funds on hand at the close of the calendar
30 year; and
31 (4) other information deemed necessary to disclose the
32 activities of the workforce fund managers and the results
33 obtained.
34 (c) A copy of each report under this section must be submitted
35 to the department of local government finance in an electronic
36 format specified by the department of local government finance.
37 SECTION 2. IC 36-7-14-2, AS AMENDED BY P.L.185-2005,
38 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2022]: Sec. 2. (a) The clearance, replanning, habitation, and
40 redevelopment of areas needing redevelopment under this chapter are
41 public uses and purposes for which public money may be spent and
42 private property may be acquired.
2022 IN 4—LS 6734/DI 120 6
1 (b) Each unit shall, to the extent feasible under this chapter and
2 consistent with the needs of the unit as a whole, afford a maximum
3 opportunity for rehabilitation or redevelopment of areas by private
4 enterprise.
5 SECTION 3. IC 36-7-14-2.5, AS AMENDED BY P.L.149-2014,
6 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2022]: Sec. 2.5. (a) The assessment, planning, replanning,
8 remediation, development, and redevelopment of economic
9 development areas:
10 (1) are public and governmental functions that cannot be
11 accomplished through the ordinary operations of private
12 enterprise because of:
13 (A) the necessity for requiring the proper use of the land so as
14 to best serve the interests of the county and its citizens; and
15 (B) the costs of these projects;
16 (2) will:
17 (A) benefit the public health, safety, morals, and welfare;
18 (B) increase the economic well-being of the unit and the state;
19 and
20 (C) serve to protect and increase property values in the unit
21 and the state; and
22 (3) are public uses and purposes for which public money may be
23 spent and private property may be acquired.
24 (b) This section and sections 41 and 43 of this chapter shall be
25 liberally construed to carry out the purposes of this section.
26 (c) Except as provided in subsection (d), a redevelopment
27 commission may not enter into any obligation payable from public
28 funds without first obtaining the approval, by ordinance or resolution,
29 of the legislative body of the unit.
30 (d) A redevelopment commission is not required to obtain the
31 approval of the legislative body of the unit under this section if:
32 (1) the obligation is for a contribution to a workforce
33 retention and recruitment fund established under
34 IC 36-1-30-10.
35 (1) (2) the obligation is for the acquisition of real property under
36 this chapter; and
37 (2) (3) the agreement to acquire the real property requires the
38 redevelopment commission to:
39 (A) make payments for the real property to be acquired for a
40 term of three (3) years or less; or
41 (B) purchase the real property for a cost of less than five
42 million dollars ($5,000,000).
2022 IN 4—LS 6734/DI 120 7
1 A redevelopment commission may not enter into an obligation payable
2 from public funds, other than an obligation described in this
3 subsection, unless the redevelopment commission first obtains the
4 approval of the legislative body of the unit as provided in subsection
5 (c).
6 (e) The approving ordinance or resolution of a legislative body
7 under subsection (c) must include the following:
8 (1) The maximum amount of the obligation.
9 (2) The maximum interest rate or rates, any provisions for
10 redemption before maturity, and any provisions for the payment
11 of capitalized interest associated with the obligation.
12 (3) The maximum term of the obligation.
13 SECTION 4. IC 36-7-14-12.2, AS AMENDED BY P.L.95-2014,
14 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2022]: Sec. 12.2. (a) The redevelopment commission may do
16 the following:
17 (1) Acquire by purchase, exchange, gift, grant, condemnation, or
18 lease, or any combination of methods, any personal property or
19 interest in real property needed for the redevelopment of areas
20 needing redevelopment that are located within the corporate
21 boundaries of the unit.
22 (2) Hold, use, sell (by conveyance by deed, land sale contract, or
23 other instrument), exchange, lease, rent, or otherwise dispose of
24 property acquired for use in the redevelopment of areas needing
25 redevelopment on the terms and conditions that the commission
26 considers best for the unit and its inhabitants.
27 (3) Sell, lease, or grant interests in all or part of the real property
28 acquired for redevelopment purposes to any other department of
29 the unit or to any other governmental agency for public ways,
30 levees, sewerage, parks, playgrounds, schools, and other public
31 purposes on any terms that may be agreed on.
32 (4) Clear real property acquired for redevelopment purposes.
33 (5) Enter on or into, inspect, investigate, and assess real property
34 and structures acquired or to be acquired for redevelopment
35 purposes to determine the existence, source, nature, and extent of
36 any environmental contamination, including the following:
37 (A) Hazardous substances.
38 (B) Petroleum.
39 (C) Other pollutants.
40 (6) Remediate environmental contamination, including the
41 following, found on any real property or structures acquired for
42 redevelopment purposes:
2022 IN 4—LS 6734/DI 120 8
1 (A) Hazardous substances.
2 (B) Petroleum.
3 (C) Other pollutants.
4 (7) Repair and maintain structures acquired for redevelopment
5 purposes.
6 (8) Remodel, rebuild, enlarge, or make major structural
7 improvements on structures acquired for redevelopment purposes.
8 (9) Survey or examine any land to determine whether it should be
9 included within an area needing redevelopment to be acquired for
10 redevelopment purposes and to determine the value of that land.
11 (10) Appear before any other department or agency of the unit, or
12 before any other governmental agency in respect to any matter
13 affecting:
14 (A) real property acquired or being acquired for
15 redevelopment purposes; or
16 (B) any area needing redevelopment within the jurisdiction of
17 the commissioners.
18 (11) Institute or defend in the name of the unit any civil action.
19 (12) Use any legal or equitable remedy that is necessary or
20 considered proper to protect and enforce the rights of and perform
21 the duties of the department of redevelopment.
22 (13) Appoint an executive director, appraisers, real estate experts,
23 engineers, architects, surveyors, and attorneys.
24 (14) Appoint clerks, guards, laborers, and other employees the
25 commission considers advisable, except that those appointments
26 must be made in accordance with the merit system of the unit if
27 such a system exists.
28 (15) Prescribe the duties and regulate the compensation of
29 employees of the department of redevelopment.
30 (16) Provide a pension and retirement system for employees of
31 the department of redevelopment by using the Indiana public
32 employees' retirement fund or a retirement plan approved by the
33 United States Department of Housing and Urban Development.
34 (17) Discharge and appoint successors to employees of the
35 department of redevelopment subject to subdivision (14).
36 (18) Rent offices for use of the department of redevelopment, or
37 accept the use of offices furnished by the unit.
38 (19) Equip the offices of the department of redevelopment with
39 the necessary furniture, furnishings, equipment, records, and
40 supplies.
41 (20) Expend, on behalf of the special taxing district, all or any
42 part of the money of the special taxing district.
2022 IN 4—LS 6734/DI 120 9
1 (21) Contract for the construction of:
2 (A) local public improvements (as defined in IC 36-7-14.5-6)
3 or structures that are necessary for redevelopment of areas
4 needing redevelopment or economic development within the
5 corporate boundaries of the unit; or
6 (B) any structure that enhances development or economic
7 development.
8 (22) Contract for the construction, extension, or improvement of
9 pedestrian skyways.
10 (23) Accept loans, grants, and other forms of financial assistance
11 from the federal government, the state government, a municipal
12 corporation, a special taxing district, a foundation, or any other
13 source.
14 (24) Provide financial assistance (including grants and loans) to
15 enable individuals and families to purchase or lease residential
16 units in a multiple unit residential structure within the district.
17 However, financial assistance may be provided only to individuals
18 and families whose income is at or below the unit's median
19 income for individuals and families, respectively.
20 (25) Provide financial assistance (including grants and loans) to
21 neighborhood development corporations to permit them to:
22 (A) provide financial assistance for the purposes described in
23 subdivision (24); or
24 (B) construct, rehabilitate, or repair commercial property
25 within the district.
26 (26) Require as a condition of financial assistance to the owner of
27 a multiple unit residential structure that any of the units leased by
28 the owner must be leased:
29 (A) for a period to be determined by the commission, which
30 may not be less than five (5) years;
31 (B) to families whose income does not exceed eighty percent
32 (80%) of the unit's median income for families; and
33 (C) at an affordable rate.
34 (27) This subdivision does not apply to a redevelopment
35 commission in a county for which the total amount of net property
36 taxes allocated to all allocation areas or other tax increment
37 financing areas established by a redevelopment commission,
38 military base reuse authority, military base development authority,
39 or another similar entity in the county in the preceding calendar
40 year exceeded nineteen percent (19%) of the total net property
41 taxes billed in the county in the preceding calendar year. Subject
42 to prior approval by the fiscal body of the unit that established the
2022 IN 4—LS 6734/DI 120 10
1 redevelopment commission, expend money and provide financial
2 assistance (including grants and loans):
3 (A) in direct support of:
4 (i) an active military base located within the unit; or
5 (ii) an entity located in the territory or facilities of a military
6 base or former military base within the unit that is scheduled
7 for closing or is completely or partially inactive or closed, or
8 an entity that is located in any territory or facilities of the
9 United States Department of Defense within the unit that are
10 scheduled for closing or are completely or partially inactive
11 or closed;
12 including direct support for the promotion of the active
13 military base or entity, the growth of the active military base
14 or entity, and activities at the active military base or entity; and
15 (B) in support of any other entity that provides services or
16 direct support to an active military base or entity described in
17 clause (A).
18 The fiscal body of the unit that established the redevelopment
19 commission must separately approve each grant, loan, or other
20 expenditure for financial assistance under this subdivision. The
21 terms of any loan that is made under this subdivision may be
22 changed only if the change is approved by the fiscal body of the
23 unit that established the redevelopment commission. As used in
24 this subdivision, "active military base" has the meaning set forth
25 in IC 36-1-4-20.
26 (28) Provide financial assistance (including grants and loans)
27 to enable units to attract and retain individuals and families.
28 (b) Conditions imposed by the commission under subsection (a)(26)
29 remain in force throughout the period determined under subsection
30 (a)(26)(A), even if the owner sells, leases, or conveys the property. The
31 subsequent owner or lessee is bound by the conditions for the
32 remainder of the period.
33 (c) As used in this section, "pedestrian skyway" means a pedestrian
34 walkway within or outside of the public right-of-way and through and
35 above public or private property and buildings, including all structural
36 supports required to connect skyways to buildings or buildings under
37 construction. Pedestrian skyways constructed, extended, or improved
38 over or through public or private property constitute public property
39 and public improvements, constitute a public use and purpose, and do
40 not require vacation of any public way or other property.
41 (d) All powers that may be exercised under this chapter by the
42 redevelopment commission may also be exercised by the
2022 IN 4—LS 6734/DI 120 11
1 redevelopment commission in carrying out its duties and purposes
2 under IC 36-7-14.5. However, if a power pertains to issuing bonds or
3 incurring an obligation, the exercise of the power must first be
4 specifically approved by the fiscal or legislative body of the unit,
5 whichever applies.
6 (e) A commission may not exercise the power of eminent domain.
2022 IN 4—LS 6734/DI 120