LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6734 NOTE PREPARED: Jan 20, 2022
BILL NUMBER: SB 4 BILL AMENDED: Jan 20, 2022
SUBJECT: Local Workforce Recruiting and Retention.
FIRST AUTHOR: Sen. Holdman BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: The bill authorizes a local unit (county, municipality, town, township, or school
corporation) to establish a workforce retention and recruitment program and 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.
The bill defines "qualified worker" for purposes of the program. It requires a qualified worker who receives
a grant or loan from the fund to enter into an incentive agreement.
It authorizes the unit to transfer money into the fund from other sources. It provides that the executive of the
unit shall administer the fund in coordination with a workforce fund board of managers appointed by the
executive of the unit.
It 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.
It also makes conforming changes.
Effective Date: July 1, 2022.
Explanation of State Expenditures:
SB 4 1 Explanation of State Revenues:
Explanation of Local Expenditures: Summary - The bill would increase workload and expenditures for
counties, municipalities, towns, townships, or school corporations that decide to establish a workforce
retention and recruitment program. The bill provides the local units with flexibility to determine how to
structure the program as well as to determine the form and size of the grant and loan incentives offered. The
bill is silent on how the administrative costs of a program would be paid.
Additional Information - Workforce Fund Board of Managers: Local units participating in the program
would be required to form a five member workforce fund board of managers. The board of managers is
required to adopt rules and bylaws, identify the most appropriate and fiscally responsible incentives to retain
individuals and families in their communities, develop the program, administer the fund, market the program,
identify and recruit applicants, establish an application process, evaluate applicants, offer incentives to
qualified applicants, and report on the program. The board of managers may establish a nonprofit
organization to administer the program. A local unit may join with other units, private sector businesses, or
community or philanthropic organizations to establish a program.
Fund: The fund may consist of private grants or contributions, appropriations to the fund from the unit’s
budget, transfers from other unencumbered local funds, and repayments to the fund. The unit executive and
the board of managers shall administer the fund. Any money in the fund at the end of the calendar year does
not revert to the unit’s general fund.
Program Eligibility: Under the program, grants and loans may be awarded to individuals in the following
circumstances:
1. Individuals who graduate from an Indiana college or university and live in or relocate to live and
work within the boundaries the unit;
2. Individuals who relocate to the unit from out of state in order to work for an employer within the
unit;
3. Residents of a unit who provide a substantial economic impact to the community and who produce
clear, convincing, and substantiated evidence that they intend to move out of the state, but who agree
to maintain their residency within the local unit;
4. Individuals who agree to work remotely;
5. Individuals who agree to work for an Indiana company.
Individuals who receive a grant or a loan under this program must agree to reside in the local unit providing
the incentive for the duration of time set by an incentive agreement.
Explanation of Local Revenues: (Revised) Local units may receive revenues from penalties imposed on
individuals who move out of the unit before they meet the time commitment required in incentive
agreements. Local units have flexibility to set both the duration of the time commitment and the penalty.
Workforce fund managers may choose to waive a penalty for a qualified worker.
State Agencies Affected:
Local Agencies Affected: Counties, municipalities, towns, townships, and school corporations.
Information Sources:
SB 4 2 Fiscal Analyst: Camille Tesch, 317-232-5293.
SB 4 3