*SB0004.2*
Reprinted
January 21, 2022
SENATE BILL No. 4
_____
DIGEST OF SB 4 (Updated January 20, 2022 4:05 pm - DI 120)
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, Messmer, Rogers,
Qaddoura
January 6, 2022, read first time and referred to Committee on Tax and Fiscal Policy.
January 18, 2022, amended, reported favorably — Do Pass.
January 20, 2022, read second time, amended, ordered engrossed.
SB 4—LS 6734/DI 120 Reprinted
January 21, 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 or
21 ordinance establish a workforce retention and recruitment
22 program for the purposes of recruiting and retaining individuals
23 who will satisfy the current and future workforce needs of the
24 unit's employers or provide substantial economic impact to the
25 unit, including providing incentives in the form of grants or loans
26 to qualified workers.
27 (b) A program must require each qualified worker that receives
28 a grant or loan from the fund to enter into an incentive agreement
29 with the workforce fund managers. An incentive agreement must
30 include the following terms:
31 (1) The duration of time each qualified worker agrees to
32 reside within the unit following the date specified in the
33 agreement.
34 (2) A penalty clause if a qualified worker fails to fulfill the
35 terms of the agreement.
36 However, the workforce fund managers may waive a penalty under
37 subdivision (2) regarding any part of a grant or loan that the
38 qualified worker may have received and that is due under the
39 incentive agreement.
40 Sec. 10. (a) If the executive of a unit establishes a program
41 under section 9 of this chapter, the fiscal officer of the unit shall
42 establish a workforce retention and recruitment fund for the
SB 4—LS 6734/DI 120 3
1 purposes of the program.
2 (b) The fund shall consist of the following:
3 (1) Any private grants or contributions.
4 (2) Appropriations to the fund included in the unit's budget.
5 (3) Transfers of money to the fund under section 13 of this
6 chapter.
7 (4) Any repayments to the fund under section 9(b) of this
8 chapter.
9 (c) The executive of the unit shall administer the fund in
10 coordination with a workforce fund board of managers established
11 under section 11 of this chapter, including any qualified nonprofit
12 organization established by the workforce fund managers under
13 that section.
14 (d) Any money remaining in a fund at the end of the calendar
15 year does not revert to the unit's general fund.
16 Sec. 11. (a) The executive of a unit that establishes a program
17 under section 9 of this chapter shall appoint a five (5) member
18 workforce fund board of managers. The duties of the workforce
19 fund managers shall include:
20 (1) adopting rules and bylaws they consider necessary for the
21 proper conduct of their proceedings, the carrying out of other
22 duties, and the safeguarding of the money or property placed
23 in their custody;
24 (2) by resolution or in accordance with their rules and bylaws,
25 prescribing the date and manner of notice of their regular
26 meetings;
27 (3) identifying the most appropriate and fiscally responsible
28 incentives that will attract or retain individuals or families
29 who will satisfy the current and future workforce needs of the
30 unit's employers or provide substantial economic impact to
31 the unit;
32 (4) identifying the most appropriate and fiscally responsible
33 incentives that will attract or retain these individuals or
34 families;
35 (5) developing and implementing marketing strategies to
36 recruit or retain these individuals or families;
37 (6) identifying and recruiting applicants who may receive
38 incentives from the fund;
39 (7) establishing an application process for individuals and
40 families;
41 (8) evaluating applicants; and
42 (9) offering incentives to qualified applicants.
SB 4—LS 6734/DI 120 4
1 (b) Three (3) of the workforce fund managers constitute a
2 quorum and the concurrence of three (3) of the workforce fund
3 managers is necessary to authorize any action.
4 (c) The workforce fund managers may establish a qualified
5 nonprofit organization for purposes of carrying out a program and
6 the purposes of a fund under this chapter.
7 Sec. 12. To qualify for a grant or loan from a fund an individual
8 must be:
9 (1) a graduate of an Indiana college or university who is a
10 resident of the unit, or relocates to a location within the unit,
11 and accepts and commences employment with an employer
12 located within the unit under the terms of an incentive
13 agreement;
14 (2) an out-of-state resident who relocates to a location within
15 the unit in order to accept and commence employment with
16 an employer located within the unit under the terms of an
17 incentive agreement;
18 (3) a resident of the unit who the workforce fund managers
19 determines provides a substantial economic impact to the
20 community and produces clear, convincing, and substantiated
21 evidence that he or she intends to move out-of-state, but who
22 agrees instead to maintain the individual's residency within
23 the unit under the terms of an incentive agreement;
24 (4) a person who agrees to work remotely (regardless of
25 employer's domicile); or
26 (5) a person who agrees to work for an Indiana employer.
27 Sec. 13. (a) The fiscal body of a unit may transfer or deposit the
28 following into a fund:
29 (1) Any private grants or contributions.
30 (2) Appropriations to the fund included in the unit's budget.
31 (3) Notwithstanding any use of funds prohibition but so long
32 as the transfer or deposit is authorized by the relevant
33 statutory procedure:
34 (A) any surplus, unexpended, unappropriated,
35 unencumbered, or otherwise available, public or private
36 money; and
37 (B) from any general account, reverting or nonreverting
38 fund, special account, or trust, created or administered by
39 any department, board, authority, commission, political
40 subdivision, special service district, special taxing district,
41 or any other instrumentality of local government under
42 IC 36 with authority to collect or receive bond proceeds,
SB 4—LS 6734/DI 120 5
1 taxes, interest, or any other public or private money.
2 (b) Notwithstanding any other statute, an executive of a unit
3 that has established a program under section 9 of this chapter,
4 after consulting with the fiscal body and fiscal officer of the unit,
5 may authorize a transfer or loan to a fund from any dedicated fund
6 or account before the purpose for which the dedicated fund or
7 account was established has been accomplished.
8 (c) Two (2) or more units may, by written agreement,
9 collaborate, commingle funds, or otherwise work together for the
10 benefit of administering or carrying out the purposes of the units'
11 funds.
12 Sec. 14. Any separate body corporate and politic or regional,
13 multicounty or metropolitan authority or commission may, by
14 written agreement, establish a mutually beneficial relationship
15 with one (1) or more units for purposes of administering or
16 carrying out the purposes of the unit's fund or units' funds.
17 Sec. 15. (a) Not later than April 15 of each year, the workforce
18 fund managers shall file with the executive of the unit and fiscal
19 body of the unit a report setting out their activities during the
20 preceding calendar year.
21 (b) The report of the workforce fund managers under this
22 section must show:
23 (1) the names of the then qualified and acting workforce fund
24 managers;
25 (2) the amount of the expenditures made during the preceding
26 year and their general purpose;
27 (3) the amount of funds on hand at the close of the calendar
28 year; and
29 (4) other information deemed necessary to disclose the
30 activities of the workforce fund managers and the results
31 obtained.
32 (c) A copy of each report under this section must be submitted
33 to the department of local government finance in an electronic
34 format specified by the department of local government finance.
35 SECTION 2. IC 36-7-14-2, AS AMENDED BY P.L.185-2005,
36 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2022]: Sec. 2. (a) The clearance, replanning, habitation, and
38 redevelopment of areas needing redevelopment under this chapter are
39 public uses and purposes for which public money may be spent and
40 private property may be acquired.
41 (b) Each unit shall, to the extent feasible under this chapter and
42 consistent with the needs of the unit as a whole, afford a maximum
SB 4—LS 6734/DI 120 6
1 opportunity for rehabilitation or redevelopment of areas by private
2 enterprise.
3 SECTION 3. IC 36-7-14-2.5, AS AMENDED BY P.L.149-2014,
4 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2022]: Sec. 2.5. (a) The assessment, planning, replanning,
6 remediation, development, and redevelopment of economic
7 development areas:
8 (1) are public and governmental functions that cannot be
9 accomplished through the ordinary operations of private
10 enterprise because of:
11 (A) the necessity for requiring the proper use of the land so as
12 to best serve the interests of the county and its citizens; and
13 (B) the costs of these projects;
14 (2) will:
15 (A) benefit the public health, safety, morals, and welfare;
16 (B) increase the economic well-being of the unit and the state;
17 and
18 (C) serve to protect and increase property values in the unit
19 and the state; and
20 (3) are public uses and purposes for which public money may be
21 spent and private property may be acquired.
22 (b) This section and sections 41 and 43 of this chapter shall be
23 liberally construed to carry out the purposes of this section.
24 (c) Except as provided in subsection (d), a redevelopment
25 commission may not enter into any obligation payable from public
26 funds without first obtaining the approval, by ordinance or resolution,
27 of the legislative body of the unit.
28 (d) A redevelopment commission is not required to obtain the
29 approval of the legislative body of the unit under this section if:
30 (1) the obligation is for a contribution to a workforce
31 retention and recruitment fund established under
32 IC 36-1-30-10.
33 (1) (2) the obligation is for the acquisition of real property under
34 this chapter; and
35 (2) (3) the agreement to acquire the real property requires the
36 redevelopment commission to:
37 (A) make payments for the real property to be acquired for a
38 term of three (3) years or less; or
39 (B) purchase the real property for a cost of less than five
40 million dollars ($5,000,000).
41 A redevelopment commission may not enter into an obligation payable
42 from public funds, other than an obligation described in this
SB 4—LS 6734/DI 120 7
1 subsection, unless the redevelopment commission first obtains the
2 approval of the legislative body of the unit as provided in subsection
3 (c).
4 (e) The approving ordinance or resolution of a legislative body
5 under subsection (c) must include the following:
6 (1) The maximum amount of the obligation.
7 (2) The maximum interest rate or rates, any provisions for
8 redemption before maturity, and any provisions for the payment
9 of capitalized interest associated with the obligation.
10 (3) The maximum term of the obligation.
11 SECTION 4. IC 36-7-14-12.2, AS AMENDED BY P.L.95-2014,
12 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2022]: Sec. 12.2. (a) The redevelopment commission may do
14 the following:
15 (1) Acquire by purchase, exchange, gift, grant, condemnation, or
16 lease, or any combination of methods, any personal property or
17 interest in real property needed for the redevelopment of areas
18 needing redevelopment that are located within the corporate
19 boundaries of the unit.
20 (2) Hold, use, sell (by conveyance by deed, land sale contract, or
21 other instrument), exchange, lease, rent, or otherwise dispose of
22 property acquired for use in the redevelopment of areas needing
23 redevelopment on the terms and conditions that the commission
24 considers best for the unit and its inhabitants.
25 (3) Sell, lease, or grant interests in all or part of the real property
26 acquired for redevelopment purposes to any other department of
27 the unit or to any other governmental agency for public ways,
28 levees, sewerage, parks, playgrounds, schools, and other public
29 purposes on any terms that may be agreed on.
30 (4) Clear real property acquired for redevelopment purposes.
31 (5) Enter on or into, inspect, investigate, and assess real property
32 and structures acquired or to be acquired for redevelopment
33 purposes to determine the existence, source, nature, and extent of
34 any environmental contamination, including the following:
35 (A) Hazardous substances.
36 (B) Petroleum.
37 (C) Other pollutants.
38 (6) Remediate environmental contamination, including the
39 following, found on any real property or structures acquired for
40 redevelopment purposes:
41 (A) Hazardous substances.
42 (B) Petroleum.
SB 4—LS 6734/DI 120 8
1 (C) Other pollutants.
2 (7) Repair and maintain structures acquired for redevelopment
3 purposes.
4 (8) Remodel, rebuild, enlarge, or make major structural
5 improvements on structures acquired for redevelopment purposes.
6 (9) Survey or examine any land to determine whether it should be
7 included within an area needing redevelopment to be acquired for
8 redevelopment purposes and to determine the value of that land.
9 (10) Appear before any other department or agency of the unit, or
10 before any other governmental agency in respect to any matter
11 affecting:
12 (A) real property acquired or being acquired for
13 redevelopment purposes; or
14 (B) any area needing redevelopment within the jurisdiction of
15 the commissioners.
16 (11) Institute or defend in the name of the unit any civil action.
17 (12) Use any legal or equitable remedy that is necessary or
18 considered proper to protect and enforce the rights of and perform
19 the duties of the department of redevelopment.
20 (13) Appoint an executive director, appraisers, real estate experts,
21 engineers, architects, surveyors, and attorneys.
22 (14) Appoint clerks, guards, laborers, and other employees the
23 commission considers advisable, except that those appointments
24 must be made in accordance with the merit system of the unit if
25 such a system exists.
26 (15) Prescribe the duties and regulate the compensation of
27 employees of the department of redevelopment.
28 (16) Provide a pension and retirement system for employees of
29 the department of redevelopment by using the Indiana public
30 employees' retirement fund or a retirement plan approved by the
31 United States Department of Housing and Urban Development.
32 (17) Discharge and appoint successors to employees of the
33 department of redevelopment subject to subdivision (14).
34 (18) Rent offices for use of the department of redevelopment, or
35 accept the use of offices furnished by the unit.
36 (19) Equip the offices of the department of redevelopment with
37 the necessary furniture, furnishings, equipment, records, and
38 supplies.
39 (20) Expend, on behalf of the special taxing district, all or any
40 part of the money of the special taxing district.
41 (21) Contract for the construction of:
42 (A) local public improvements (as defined in IC 36-7-14.5-6)
SB 4—LS 6734/DI 120 9
1 or structures that are necessary for redevelopment of areas
2 needing redevelopment or economic development within the
3 corporate boundaries of the unit; or
4 (B) any structure that enhances development or economic
5 development.
6 (22) Contract for the construction, extension, or improvement of
7 pedestrian skyways.
8 (23) Accept loans, grants, and other forms of financial assistance
9 from the federal government, the state government, a municipal
10 corporation, a special taxing district, a foundation, or any other
11 source.
12 (24) Provide financial assistance (including grants and loans) to
13 enable individuals and families to purchase or lease residential
14 units in a multiple unit residential structure within the district.
15 However, financial assistance may be provided only to individuals
16 and families whose income is at or below the unit's median
17 income for individuals and families, respectively.
18 (25) Provide financial assistance (including grants and loans) to
19 neighborhood development corporations to permit them to:
20 (A) provide financial assistance for the purposes described in
21 subdivision (24); or
22 (B) construct, rehabilitate, or repair commercial property
23 within the district.
24 (26) Require as a condition of financial assistance to the owner of
25 a multiple unit residential structure that any of the units leased by
26 the owner must be leased:
27 (A) for a period to be determined by the commission, which
28 may not be less than five (5) years;
29 (B) to families whose income does not exceed eighty percent
30 (80%) of the unit's median income for families; and
31 (C) at an affordable rate.
32 (27) This subdivision does not apply to a redevelopment
33 commission in a county for which the total amount of net property
34 taxes allocated to all allocation areas or other tax increment
35 financing areas established by a redevelopment commission,
36 military base reuse authority, military base development authority,
37 or another similar entity in the county in the preceding calendar
38 year exceeded nineteen percent (19%) of the total net property
39 taxes billed in the county in the preceding calendar year. Subject
40 to prior approval by the fiscal body of the unit that established the
41 redevelopment commission, expend money and provide financial
42 assistance (including grants and loans):
SB 4—LS 6734/DI 120 10
1 (A) in direct support of:
2 (i) an active military base located within the unit; or
3 (ii) an entity located in the territory or facilities of a military
4 base or former military base within the unit that is scheduled
5 for closing or is completely or partially inactive or closed, or
6 an entity that is located in any territory or facilities of the
7 United States Department of Defense within the unit that are
8 scheduled for closing or are completely or partially inactive
9 or closed;
10 including direct support for the promotion of the active
11 military base or entity, the growth of the active military base
12 or entity, and activities at the active military base or entity; and
13 (B) in support of any other entity that provides services or
14 direct support to an active military base or entity described in
15 clause (A).
16 The fiscal body of the unit that established the redevelopment
17 commission must separately approve each grant, loan, or other
18 expenditure for financial assistance under this subdivision. The
19 terms of any loan that is made under this subdivision may be
20 changed only if the change is approved by the fiscal body of the
21 unit that established the redevelopment commission. As used in
22 this subdivision, "active military base" has the meaning set forth
23 in IC 36-1-4-20.
24 (28) Provide financial assistance (including grants and loans)
25 to enable units to attract and retain individuals and families.
26 (b) Conditions imposed by the commission under subsection (a)(26)
27 remain in force throughout the period determined under subsection
28 (a)(26)(A), even if the owner sells, leases, or conveys the property. The
29 subsequent owner or lessee is bound by the conditions for the
30 remainder of the period.
31 (c) As used in this section, "pedestrian skyway" means a pedestrian
32 walkway within or outside of the public right-of-way and through and
33 above public or private property and buildings, including all structural
34 supports required to connect skyways to buildings or buildings under
35 construction. Pedestrian skyways constructed, extended, or improved
36 over or through public or private property constitute public property
37 and public improvements, constitute a public use and purpose, and do
38 not require vacation of any public way or other property.
39 (d) All powers that may be exercised under this chapter by the
40 redevelopment commission may also be exercised by the
41 redevelopment commission in carrying out its duties and purposes
42 under IC 36-7-14.5. However, if a power pertains to issuing bonds or
SB 4—LS 6734/DI 120 11
1 incurring an obligation, the exercise of the power must first be
2 specifically approved by the fiscal or legislative body of the unit,
3 whichever applies.
4 (e) A commission may not exercise the power of eminent domain.
SB 4—LS 6734/DI 120 12
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.
_____
SENATE MOTION
Madam President: I move that Senate Bill 4 be amended to read as
follows:
Page 2, line 20, after "resolution" insert "or ordinance".
Page 2, after line 34, begin a new line blocked left and insert:
"However, the workforce fund managers may waive a penalty
under subdivision (2) regarding any part of a grant or loan that the
qualified worker may have received and that is due under the
SB 4—LS 6734/DI 120 13
incentive agreement.".
(Reference is to SB 4 as printed January 19, 2022.)
HOLDMAN
SB 4—LS 6734/DI 120