*SB0004.1*
January 19, 2022
SENATE BILL No. 4
_____
DIGEST OF SB 4 (Updated January 18, 2022 10:15 am - DI 129)
Citations Affected: IC 36-1; IC 36-7.
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, Raatz
January 6, 2022, read first time and referred to Committee on Tax and Fiscal Policy.
January 18, 2022, amended, reported favorably — Do Pass.
SB 4—LS 6734/DI 120 January 19, 2022
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
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
SB 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) The duration of time each qualified worker agrees to
31 reside within the unit following the date specified in the
32 agreement.
33 (2) A penalty clause if a qualified worker fails to fulfill the
34 terms of the agreement.
35 Sec. 10. (a) If the executive of a unit establishes a program
36 under section 9 of this chapter, the fiscal officer of the unit shall
37 establish a workforce retention and recruitment fund for the
38 purposes of the program.
39 (b) The fund shall consist of the following:
40 (1) Any private grants or contributions.
41 (2) Appropriations to the fund included in the unit's budget.
42 (3) Transfers of money to the fund under section 13 of this
SB 4—LS 6734/DI 120 3
1 chapter.
2 (4) Any repayments to the fund under section 9(b) of this
3 chapter.
4 (c) The executive of the unit shall administer the fund in
5 coordination with a workforce fund board of managers established
6 under section 11 of this chapter, including any qualified nonprofit
7 organization established by the workforce fund managers under
8 that section.
9 (d) Any money remaining in a fund at the end of the calendar
10 year does not revert to the unit's general fund.
11 Sec. 11. (a) The executive of a unit that establishes a program
12 under section 9 of this chapter shall appoint a five (5) member
13 workforce fund board of managers. The duties of the workforce
14 fund managers shall include:
15 (1) adopting rules and bylaws they consider necessary for the
16 proper conduct of their proceedings, the carrying out of other
17 duties, and the safeguarding of the money or property placed
18 in their custody;
19 (2) by resolution or in accordance with their rules and bylaws,
20 prescribing the date and manner of notice of their regular
21 meetings;
22 (3) identifying the most appropriate and fiscally responsible
23 incentives that will attract or retain individuals or families
24 who will satisfy the current and future workforce needs of the
25 unit's employers or provide substantial economic impact to
26 the unit;
27 (4) identifying the most appropriate and fiscally responsible
28 incentives that will attract or retain these individuals or
29 families;
30 (5) developing and implementing marketing strategies to
31 recruit or retain these individuals or families;
32 (6) identifying and recruiting applicants who may receive
33 incentives from the fund;
34 (7) establishing an application process for individuals and
35 families;
36 (8) evaluating applicants; and
37 (9) offering incentives to qualified applicants.
38 (b) Three (3) of the workforce fund managers constitute a
39 quorum and the concurrence of three (3) of the workforce fund
40 managers is necessary to authorize any action.
41 (c) The workforce fund managers may establish a qualified
42 nonprofit organization for purposes of carrying out a program and
SB 4—LS 6734/DI 120 4
1 the purposes of a fund under this chapter.
2 Sec. 12. To qualify for a grant or loan from a fund an individual
3 must be:
4 (1) a graduate of an Indiana college or university who is a
5 resident of the unit, or relocates to a location within the unit,
6 and accepts and commences employment with an employer
7 located within the unit under the terms of an incentive
8 agreement;
9 (2) an out-of-state resident who relocates to a location within
10 the unit in order to accept and commence employment with
11 an employer located within the unit under the terms of an
12 incentive agreement;
13 (3) a resident of the unit who the workforce fund managers
14 determines provides a substantial economic impact to the
15 community and produces clear, convincing, and substantiated
16 evidence that he or she intends to move out-of-state, but who
17 agrees instead to maintain the individual's residency within
18 the unit under the terms of an incentive agreement;
19 (4) a person who agrees to work remotely (regardless of
20 employer's domicile); or
21 (5) a person who agrees to work for an Indiana employer.
22 Sec. 13. (a) The fiscal body of a unit may transfer or deposit the
23 following into a fund:
24 (1) Any private grants or contributions.
25 (2) Appropriations to the fund included in the unit's budget.
26 (3) Notwithstanding any use of funds prohibition but so long
27 as the transfer or deposit is authorized by the relevant
28 statutory procedure:
29 (A) any surplus, unexpended, unappropriated,
30 unencumbered, or otherwise available, public or private
31 money; and
32 (B) from any general account, reverting or nonreverting
33 fund, special account, or trust, created or administered by
34 any department, board, authority, commission, political
35 subdivision, special service district, special taxing district,
36 or any other instrumentality of local government under
37 IC 36 with authority to collect or receive bond proceeds,
38 taxes, interest, or any other public or private money.
39 (b) Notwithstanding any other statute, an executive of a unit
40 that has established a program under section 9 of this chapter,
41 after consulting with the fiscal body and fiscal officer of the unit,
42 may authorize a transfer or loan to a fund from any dedicated fund
SB 4—LS 6734/DI 120 5
1 or account before the purpose for which the dedicated fund or
2 account was established has been accomplished.
3 (c) Two (2) or more units may, by written agreement,
4 collaborate, commingle funds, or otherwise work together for the
5 benefit of administering or carrying out the purposes of the units'
6 funds.
7 Sec. 14. Any separate body corporate and politic or regional,
8 multicounty or metropolitan authority or commission may, by
9 written agreement, establish a mutually beneficial relationship
10 with one (1) or more units for purposes of administering or
11 carrying out the purposes of the unit's fund or units' funds.
12 Sec. 15. (a) Not later than April 15 of each year, the workforce
13 fund managers shall file with the executive of the unit and fiscal
14 body of the unit a report setting out their activities during the
15 preceding calendar year.
16 (b) The report of the workforce fund managers under this
17 section must show:
18 (1) the names of the then qualified and acting workforce fund
19 managers;
20 (2) the amount of the expenditures made during the preceding
21 year and their general purpose;
22 (3) the amount of funds on hand at the close of the calendar
23 year; and
24 (4) other information deemed necessary to disclose the
25 activities of the workforce fund managers and the results
26 obtained.
27 (c) A copy of each report under this section must be submitted
28 to the department of local government finance in an electronic
29 format specified by the department of local government finance.
30 SECTION 2. IC 36-7-14-2, AS AMENDED BY P.L.185-2005,
31 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2022]: Sec. 2. (a) The clearance, replanning, habitation, and
33 redevelopment of areas needing redevelopment under this chapter are
34 public uses and purposes for which public money may be spent and
35 private property may be acquired.
36 (b) Each unit shall, to the extent feasible under this chapter and
37 consistent with the needs of the unit as a whole, afford a maximum
38 opportunity for rehabilitation or redevelopment of areas by private
39 enterprise.
40 SECTION 3. IC 36-7-14-2.5, AS AMENDED BY P.L.149-2014,
41 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2022]: Sec. 2.5. (a) The assessment, planning, replanning,
SB 4—LS 6734/DI 120 6
1 remediation, development, and redevelopment of economic
2 development areas:
3 (1) are public and governmental functions that cannot be
4 accomplished through the ordinary operations of private
5 enterprise because of:
6 (A) the necessity for requiring the proper use of the land so as
7 to best serve the interests of the county and its citizens; and
8 (B) the costs of these projects;
9 (2) will:
10 (A) benefit the public health, safety, morals, and welfare;
11 (B) increase the economic well-being of the unit and the state;
12 and
13 (C) serve to protect and increase property values in the unit
14 and the state; and
15 (3) are public uses and purposes for which public money may be
16 spent and private property may be acquired.
17 (b) This section and sections 41 and 43 of this chapter shall be
18 liberally construed to carry out the purposes of this section.
19 (c) Except as provided in subsection (d), a redevelopment
20 commission may not enter into any obligation payable from public
21 funds without first obtaining the approval, by ordinance or resolution,
22 of the legislative body of the unit.
23 (d) A redevelopment commission is not required to obtain the
24 approval of the legislative body of the unit under this section if:
25 (1) the obligation is for a contribution to a workforce
26 retention and recruitment fund established under
27 IC 36-1-30-10.
28 (1) (2) the obligation is for the acquisition of real property under
29 this chapter; and
30 (2) (3) the agreement to acquire the real property requires the
31 redevelopment commission to:
32 (A) make payments for the real property to be acquired for a
33 term of three (3) years or less; or
34 (B) purchase the real property for a cost of less than five
35 million dollars ($5,000,000).
36 A redevelopment commission may not enter into an obligation payable
37 from public funds, other than an obligation described in this
38 subsection, unless the redevelopment commission first obtains the
39 approval of the legislative body of the unit as provided in subsection
40 (c).
41 (e) The approving ordinance or resolution of a legislative body
42 under subsection (c) must include the following:
SB 4—LS 6734/DI 120 7
1 (1) The maximum amount of the obligation.
2 (2) The maximum interest rate or rates, any provisions for
3 redemption before maturity, and any provisions for the payment
4 of capitalized interest associated with the obligation.
5 (3) The maximum term of the obligation.
6 SECTION 4. IC 36-7-14-12.2, AS AMENDED BY P.L.95-2014,
7 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2022]: Sec. 12.2. (a) The redevelopment commission may do
9 the following:
10 (1) Acquire by purchase, exchange, gift, grant, condemnation, or
11 lease, or any combination of methods, any personal property or
12 interest in real property needed for the redevelopment of areas
13 needing redevelopment that are located within the corporate
14 boundaries of the unit.
15 (2) Hold, use, sell (by conveyance by deed, land sale contract, or
16 other instrument), exchange, lease, rent, or otherwise dispose of
17 property acquired for use in the redevelopment of areas needing
18 redevelopment on the terms and conditions that the commission
19 considers best for the unit and its inhabitants.
20 (3) Sell, lease, or grant interests in all or part of the real property
21 acquired for redevelopment purposes to any other department of
22 the unit or to any other governmental agency for public ways,
23 levees, sewerage, parks, playgrounds, schools, and other public
24 purposes on any terms that may be agreed on.
25 (4) Clear real property acquired for redevelopment purposes.
26 (5) Enter on or into, inspect, investigate, and assess real property
27 and structures acquired or to be acquired for redevelopment
28 purposes to determine the existence, source, nature, and extent of
29 any environmental contamination, including the following:
30 (A) Hazardous substances.
31 (B) Petroleum.
32 (C) Other pollutants.
33 (6) Remediate environmental contamination, including the
34 following, found on any real property or structures acquired for
35 redevelopment purposes:
36 (A) Hazardous substances.
37 (B) Petroleum.
38 (C) Other pollutants.
39 (7) Repair and maintain structures acquired for redevelopment
40 purposes.
41 (8) Remodel, rebuild, enlarge, or make major structural
42 improvements on structures acquired for redevelopment purposes.
SB 4—LS 6734/DI 120 8
1 (9) Survey or examine any land to determine whether it should be
2 included within an area needing redevelopment to be acquired for
3 redevelopment purposes and to determine the value of that land.
4 (10) Appear before any other department or agency of the unit, or
5 before any other governmental agency in respect to any matter
6 affecting:
7 (A) real property acquired or being acquired for
8 redevelopment purposes; or
9 (B) any area needing redevelopment within the jurisdiction of
10 the commissioners.
11 (11) Institute or defend in the name of the unit any civil action.
12 (12) Use any legal or equitable remedy that is necessary or
13 considered proper to protect and enforce the rights of and perform
14 the duties of the department of redevelopment.
15 (13) Appoint an executive director, appraisers, real estate experts,
16 engineers, architects, surveyors, and attorneys.
17 (14) Appoint clerks, guards, laborers, and other employees the
18 commission considers advisable, except that those appointments
19 must be made in accordance with the merit system of the unit if
20 such a system exists.
21 (15) Prescribe the duties and regulate the compensation of
22 employees of the department of redevelopment.
23 (16) Provide a pension and retirement system for employees of
24 the department of redevelopment by using the Indiana public
25 employees' retirement fund or a retirement plan approved by the
26 United States Department of Housing and Urban Development.
27 (17) Discharge and appoint successors to employees of the
28 department of redevelopment subject to subdivision (14).
29 (18) Rent offices for use of the department of redevelopment, or
30 accept the use of offices furnished by the unit.
31 (19) Equip the offices of the department of redevelopment with
32 the necessary furniture, furnishings, equipment, records, and
33 supplies.
34 (20) Expend, on behalf of the special taxing district, all or any
35 part of the money of the special taxing district.
36 (21) Contract for the construction of:
37 (A) local public improvements (as defined in IC 36-7-14.5-6)
38 or structures that are necessary for redevelopment of areas
39 needing redevelopment or economic development within the
40 corporate boundaries of the unit; or
41 (B) any structure that enhances development or economic
42 development.
SB 4—LS 6734/DI 120 9
1 (22) Contract for the construction, extension, or improvement of
2 pedestrian skyways.
3 (23) Accept loans, grants, and other forms of financial assistance
4 from the federal government, the state government, a municipal
5 corporation, a special taxing district, a foundation, or any other
6 source.
7 (24) Provide financial assistance (including grants and loans) to
8 enable individuals and families to purchase or lease residential
9 units in a multiple unit residential structure within the district.
10 However, financial assistance may be provided only to individuals
11 and families whose income is at or below the unit's median
12 income for individuals and families, respectively.
13 (25) Provide financial assistance (including grants and loans) to
14 neighborhood development corporations to permit them to:
15 (A) provide financial assistance for the purposes described in
16 subdivision (24); or
17 (B) construct, rehabilitate, or repair commercial property
18 within the district.
19 (26) Require as a condition of financial assistance to the owner of
20 a multiple unit residential structure that any of the units leased by
21 the owner must be leased:
22 (A) for a period to be determined by the commission, which
23 may not be less than five (5) years;
24 (B) to families whose income does not exceed eighty percent
25 (80%) of the unit's median income for families; and
26 (C) at an affordable rate.
27 (27) This subdivision does not apply to a redevelopment
28 commission in a county for which the total amount of net property
29 taxes allocated to all allocation areas or other tax increment
30 financing areas established by a redevelopment commission,
31 military base reuse authority, military base development authority,
32 or another similar entity in the county in the preceding calendar
33 year exceeded nineteen percent (19%) of the total net property
34 taxes billed in the county in the preceding calendar year. Subject
35 to prior approval by the fiscal body of the unit that established the
36 redevelopment commission, expend money and provide financial
37 assistance (including grants and loans):
38 (A) in direct support of:
39 (i) an active military base located within the unit; or
40 (ii) an entity located in the territory or facilities of a military
41 base or former military base within the unit that is scheduled
42 for closing or is completely or partially inactive or closed, or
SB 4—LS 6734/DI 120 10
1 an entity that is located in any territory or facilities of the
2 United States Department of Defense within the unit that are
3 scheduled for closing or are completely or partially inactive
4 or closed;
5 including direct support for the promotion of the active
6 military base or entity, the growth of the active military base
7 or entity, and activities at the active military base or entity; and
8 (B) in support of any other entity that provides services or
9 direct support to an active military base or entity described in
10 clause (A).
11 The fiscal body of the unit that established the redevelopment
12 commission must separately approve each grant, loan, or other
13 expenditure for financial assistance under this subdivision. The
14 terms of any loan that is made under this subdivision may be
15 changed only if the change is approved by the fiscal body of the
16 unit that established the redevelopment commission. As used in
17 this subdivision, "active military base" has the meaning set forth
18 in IC 36-1-4-20.
19 (28) Provide financial assistance (including grants and loans)
20 to enable units to attract and retain individuals and families.
21 (b) Conditions imposed by the commission under subsection (a)(26)
22 remain in force throughout the period determined under subsection
23 (a)(26)(A), even if the owner sells, leases, or conveys the property. The
24 subsequent owner or lessee is bound by the conditions for the
25 remainder of the period.
26 (c) As used in this section, "pedestrian skyway" means a pedestrian
27 walkway within or outside of the public right-of-way and through and
28 above public or private property and buildings, including all structural
29 supports required to connect skyways to buildings or buildings under
30 construction. Pedestrian skyways constructed, extended, or improved
31 over or through public or private property constitute public property
32 and public improvements, constitute a public use and purpose, and do
33 not require vacation of any public way or other property.
34 (d) All powers that may be exercised under this chapter by the
35 redevelopment commission may also be exercised by the
36 redevelopment commission in carrying out its duties and purposes
37 under IC 36-7-14.5. However, if a power pertains to issuing bonds or
38 incurring an obligation, the exercise of the power must first be
39 specifically approved by the fiscal or legislative body of the unit,
40 whichever applies.
41 (e) A commission may not exercise the power of eminent domain.
SB 4—LS 6734/DI 120 11
COMMITTEE REPORT
Madam President: The Senate Committee on Tax and Fiscal Policy,
to which was referred Senate Bill No. 4, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 2, delete lines 30 through 40, begin a new line block indented
and insert:
"(1) The duration of time each qualified worker agrees to
reside within the unit following the date specified in the
agreement.
(2) A penalty clause if a qualified worker fails to fulfill the
terms of the agreement.".
Page 4, delete lines 19 through 25, begin a new line block indented
and insert:
"(3) a resident of the unit who the workforce fund managers
determines provides a substantial economic impact to the
community and produces clear, convincing, and substantiated
evidence that he or she intends to move out-of-state, but who
agrees instead to maintain the individual's residency within
the unit under the terms of an incentive agreement;".
and when so amended that said bill do pass.
(Reference is to SB 4 as introduced.)
HOLDMAN, Chairperson
Committee Vote: Yeas 12, Nays 0.
SB 4—LS 6734/DI 120