Introduced Version
HOUSE BILL No. 1316
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-14; IC 34-30-2.1-82.3.
Synopsis: Next level trust fund. Repeals the provision establishing the
next generation trust fund. Requires that title to any proceeds
transferred to and held in the next generation trust fund, including any
money and investments held in the next generation trust fund, and
under any trust agreement entered into by the Indiana finance authority
(authority) and the treasurer of state, be transferred to the next level
Indiana trust fund. Provides that upon completion of the transfer to the
next level Indiana trust fund, the next generation trust fund shall cease
and be of no further force or effect as a charitable trust or otherwise.
Provides that the officers, directors, and employees of the authority and
the treasurer of state are immune from civil liability in connection with
any transfer to the next level Indiana trust fund. Changes the quorum
requirement for the next level Indiana trust fund investment board.
Provides that not any one investment made from the next level Indiana
trust fund in an investment fund may exceed $25,000,000 unless the
investment fund is specifically created to meet a need in Indiana's
ecosystem as determined by the next level Indiana trust fund
investment board. Provides that the principal of the next level Indiana
trust fund may be used to make and secure lease rental payments that:
(1) are payable from grant proceeds from the federal government; and
(2) will be used to pay bonds or notes issued by the authority. Provides
that if grant proceeds received from the federal government are not
sufficient to pay a lease rental payment, the authority shall notify the
trustee of the next level Indiana trust fund when the lease rental
payment is due and the amount of the shortfall. Requires, upon
receiving notice from the authority, the trustee of the next level Indiana
(Continued next page)
Effective: July 1, 2024.
Snow, Heine
January 10, 2024, read first time and referred to Committee on Ways and Means.
2024 IN 1316—LS 6686/DI 134 Digest Continued
trust fund to promptly transfer money in the next level Indiana trust
fund in the amount of the shortfall, or at the direction of the authority,
for the purpose of making the lease rental payment. Requires, if such
a transfer is made, the state budget director to transfer funds from the
state general fund to the next level Indiana trust fund in an amount
equal to the transfer. Requires the state budget director to submit a
report to the budget committee within 30 days after the transfer.
2024 IN 1316—LS 6686/DI 1342024 IN 1316—LS 6686/DI 134 Introduced
Second Regular Session of the 123rd General Assembly (2024)
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 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1316
A BILL FOR AN ACT to amend the Indiana Code concerning
transportation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 8-14-15.1-5, AS AMENDED BY P.L.189-2018,
2 SECTION 76, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 5. (a) The authority has established the next level
4 Indiana trust fund to hold title to proceeds transferred to the trust
5 under:
6 (1) IC 8-14-15-5 (before its repeal);
7 (2) IC 8-14-15.2-5; and
8 (3) section 17 of this chapter;
9 to be used exclusively for the provision of highways, roads, and bridges
10 for the benefit of the people of Indiana and the users of those facilities.
11 (b) The trust as established is a charitable trust, separate from the
12 state, but for the benevolent public purpose provided in this section.
13 (c) The trust consists of the proceeds transferred to the trust under
14 IC 8-14-15-5 (before its repeal), and any income that accrues from the
15 investment of these proceeds.
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1 SECTION 2. IC 8-14-15.1-7, AS AMENDED BY P.L.135-2022,
2 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 7. (a) The next level Indiana fund investment
4 board is established. The board consists of the following members:
5 (1) The secretary of commerce or the secretary's designee, who
6 shall serve as the chairperson of the board.
7 (2) The director of the office of management and budget or the
8 director's designee.
9 (3) Two (2) individuals appointed by the governor who have
10 experience and knowledge in investments.
11 (4) The treasurer of state or the treasurer's designee.
12 (5) One (1) individual appointed by the speaker of the house of
13 representatives who has experience and knowledge in venture
14 capital investments.
15 (6) One (1) individual appointed by the president pro tempore of
16 the senate who has experience and knowledge in venture capital
17 investments.
18 (b) The board shall serve as trustee of the trust and direct the
19 investment of the trust.
20 (c) The board shall adopt an investment policy in conformance with
21 section 8 of this chapter.
22 (d) The board shall hold regular meetings at least quarterly. The
23 board may hold special meetings at the call of the treasurer of state or
24 with a written request signed by at least two (2) members of the board.
25 (e) The board may hold its meetings at offices in Indiana that the
26 chairperson or the requesting members designate. All meetings must
27 be open to the public in accordance with IC 5-14-1.5. The board shall
28 keep a record of its proceedings.
29 (f) Five (5) Four (4) members of the board constitute a quorum for
30 the transaction of business of the board. Each member of the board is
31 entitled to one (1) vote. A vote of at least five (5) a simple majority of
32 those members of the board present voting on each individual
33 business issue is required for the board to adopt a resolution or take
34 other action at a regular or special meeting.
35 SECTION 3. IC 8-14-15.1-8, AS AMENDED BY P.L.201-2023,
36 SECTION 113, IS AMENDED TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2024]: Sec. 8. (a) The board shall adopt an
38 investment policy that includes all the following:
39 (1) Money in the trust may be invested in investments that:
40 (A) maximize risk appropriate returns, which may include the
41 purchase of equity or debt securities;
42 (B) make significant investments in Indiana funds and
2024 IN 1316—LS 6686/DI 134 3
1 companies; and
2 (C) have such other investment parameters and procedures as
3 the board determines are prudent to ensure that investments
4 are consistent with this chapter.
5 (2) Money in the trust shall be invested in investments that,
6 consistent with the other terms and objectives in the investment
7 policy, give preference to Indiana companies or Indiana venture
8 capital firms.
9 (3) Not more than twenty-five million dollars ($25,000,000) may
10 be invested in any one (1) particular investment fund or
11 investment firm unless the fund is specifically created to meet
12 a need in Indiana's ecosystem as determined by the board.
13 (4) Such other investment parameters and procedures as the board
14 determines are prudent to ensure that investments are consistent
15 with this chapter.
16 (b) The investment policy adopted by the board must give adequate
17 time to change current investments in a prudent manner.
18 (c) The board may contract with investment management
19 professionals, investment advisers, and legal counsel to assist in the
20 investment of the fund and may pay the expenses incurred under those
21 contracts from the fund.
22 (d) The board has the powers, duties, restrictions, limitations, and
23 penalties in connection with the board's and the treasurer of state's
24 investment and management of the assets of trust as if the following
25 provisions pertaining to the public pension and retirement funds made
26 reference to the trust and the board:
27 (1) IC 5-10.2-2-2.5.
28 (2) IC 5-10.2-2-13.
29 (3) IC 5-10.3-5-3.
30 (4) IC 5-10.3-5-4.
31 (5) IC 5-10.3-5-5.
32 (6) IC 5-10.3-5-6.
33 (7) IC 5-10.4-3-10.
34 (8) IC 5-10.4-3-12.
35 (9) IC 5-10.4-3-13.
36 (10) IC 5-10.4-3-14.
37 (11) IC 5-10.4-3-15.
38 (12) IC 5-10.4-3-16.
39 (e) Compliance with the established investment policy is definitive
40 evidence of compliance with the applicable investment standards in
41 subsection (d).
42 SECTION 4. IC 8-14-15.1-17 IS ADDED TO THE INDIANA
2024 IN 1316—LS 6686/DI 134 4
1 CODE AS A NEW SECTION TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2024]: Sec. 17. (a) The principal of the trust
3 may be used to make and secure lease rental payments that:
4 (1) are payable from grant proceeds from the federal
5 government; and
6 (2) will be used to pay bonds or notes issued by the authority
7 under IC 5-1.3.
8 (b) If grant proceeds received from the federal government are
9 not sufficient to pay a lease rental payment described in subsection
10 (a), the authority shall notify the trustee when the lease rental
11 payment is due and the amount of the shortfall. Upon receiving
12 notice from the authority, the trustee shall promptly transfer
13 money in the trust in the amount of the shortfall, or at the direction
14 of the authority, for the purpose of making the lease rental
15 payment.
16 (c) If a transfer is made under subsection (b), the state budget
17 director shall transfer funds from the state general fund to the
18 trust in an amount equal to the transfer made under subsection (b).
19 The state budget director shall submit a report to the budget
20 committee within thirty (30) days after the transfer to the trust.
21 SECTION 5. IC 8-14-15.2-5, AS ADDED BY P.L.189-2018,
22 SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2024]: Sec. 5. (a) The authority shall establish a next
24 generation trust fund to hold title to proceeds transferred to the trust
25 fund under IC 8-14-15.1-5.5 or section 10 of this chapter, to be used
26 exclusively for the provision of highways, roads, and bridges for the
27 benefit of the people of Indiana and the users of those facilities or for
28 the purpose set forth in section 10 of this chapter. Notwithstanding
29 any other law, title to any proceeds transferred to and held in the
30 trust as previously established under this chapter, including any
31 money and investments held in the trust and under any trust
32 agreement entered into by the authority and the treasurer of state
33 under section 6 of this chapter as previously in effect before July
34 1, 2024, shall be transferred to the next level Indiana trust fund
35 established under IC 8-14-15.1.
36 (b) The trust shall be established as a charitable trust, separate from
37 the state, but for the benevolent public purposes provided in this
38 section. Upon completion of the transfer to the next level Indiana
39 trust fund established under IC 8-14-15.1 as required by this
40 section, the trust shall cease and be of no further force or effect as
41 a charitable trust or otherwise.
42 (c) The trust consists of the proceeds transferred to the trust under
2024 IN 1316—LS 6686/DI 134 5
1 IC 8-14-15.1-5.5 or section 10 of this chapter, and any income that
2 accrues from the investment of these proceeds. All provisions of this
3 chapter that are inconsistent with this section are void and of no
4 further force or effect.
5 (d) The officers, directors, and employees of the authority, and
6 the treasurer of state (whether arising from the capacities of such
7 positions or from having entered into any trust agreement under
8 this chapter as previously in effect before July 1, 2024) are immune
9 from civil liability in connection with any transfer to the next level
10 Indiana trust fund under this section.
11 SECTION 6. IC 34-30-2.1-82.3 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2024]: Sec. 82.3. IC 8-14-15.2-5 (Concerning
14 officers, directors, and employees of the Indiana finance authority
15 and the treasurer of state for transfers made from the next
16 generation trust fund to the next level Indiana trust fund).
2024 IN 1316—LS 6686/DI 134