Indiana 2024 Regular Session

Indiana House Bill HB1316 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1316
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 8-14; IC 34-30-2.1-82.3.
7	7	Synopsis: Next level trust fund. Repeals the provision establishing the
8	8	next generation trust fund. Requires that title to any proceeds
9	9	transferred to and held in the next generation trust fund, including any
10	10	money and investments held in the next generation trust fund, and
11	11	under any trust agreement entered into by the Indiana finance authority
12	12	(authority) and the treasurer of state, be transferred to the next level
13	13	Indiana trust fund. Provides that upon completion of the transfer to the
14	14	next level Indiana trust fund, the next generation trust fund shall cease
15	15	and be of no further force or effect as a charitable trust or otherwise.
16	16	Provides that the officers, directors, and employees of the authority and
17	17	the treasurer of state are immune from civil liability in connection with
18	18	any transfer to the next level Indiana trust fund. Changes the quorum
19	19	requirement for the next level Indiana trust fund investment board.
20	20	Provides that not any one investment made from the next level Indiana
21	21	trust fund in an investment fund may exceed $25,000,000 unless the
22	22	investment fund is specifically created to meet a need in Indiana's
23	23	ecosystem as determined by the next level Indiana trust fund
24	24	investment board. Provides that the principal of the next level Indiana
25	25	trust fund may be used to make and secure lease rental payments that:
26	26	(1) are payable from grant proceeds from the federal government; and
27	27	(2) will be used to pay bonds or notes issued by the authority. Provides
28	28	that if grant proceeds received from the federal government are not
29	29	sufficient to pay a lease rental payment, the authority shall notify the
30	30	trustee of the next level Indiana trust fund when the lease rental
31	31	payment is due and the amount of the shortfall. Requires, upon
32	32	receiving notice from the authority, the trustee of the next level Indiana
33	33	(Continued next page)
34	34	Effective: July 1, 2024.
35	35	Snow, Heine
36	36	January 10, 2024, read first time and referred to Committee on Ways and Means.
37	37	2024 IN 1316—LS 6686/DI 134 Digest Continued
38	38	trust fund to promptly transfer money in the next level Indiana trust
39	39	fund in the amount of the shortfall, or at the direction of the authority,
40	40	for the purpose of making the lease rental payment. Requires, if such
41	41	a transfer is made, the state budget director to transfer funds from the
42	42	state general fund to the next level Indiana trust fund in an amount
43	43	equal to the transfer. Requires the state budget director to submit a
44	44	report to the budget committee within 30 days after the transfer.
45	45	2024 IN 1316—LS 6686/DI 1342024 IN 1316—LS 6686/DI 134 Introduced
46	46	Second Regular Session of the 123rd General Assembly (2024)
47	47	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
48	48	Constitution) is being amended, the text of the existing provision will appear in this style type,
49	49	additions will appear in this style type, and deletions will appear in this style type.
50	50	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
51	51	provision adopted), the text of the new provision will appear in this style type. Also, the
52	52	word NEW will appear in that style type in the introductory clause of each SECTION that adds
53	53	a new provision to the Indiana Code or the Indiana Constitution.
54	54	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
55	55	between statutes enacted by the 2023 Regular Session of the General Assembly.
56	56	HOUSE BILL No. 1316
57	57	A BILL FOR AN ACT to amend the Indiana Code concerning
58	58	transportation.
59	59	Be it enacted by the General Assembly of the State of Indiana:
60	60	1 SECTION 1. IC 8-14-15.1-5, AS AMENDED BY P.L.189-2018,
61	61	2 SECTION 76, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
62	62	3 JULY 1, 2024]: Sec. 5. (a) The authority has established the next level
63	63	4 Indiana trust fund to hold title to proceeds transferred to the trust
64	64	5 under:
65	65	6 (1) IC 8-14-15-5 (before its repeal);
66	66	7 (2) IC 8-14-15.2-5; and
67	67	8 (3) section 17 of this chapter;
68	68	9 to be used exclusively for the provision of highways, roads, and bridges
69	69	10 for the benefit of the people of Indiana and the users of those facilities.
70	70	11 (b) The trust as established is a charitable trust, separate from the
71	71	12 state, but for the benevolent public purpose provided in this section.
72	72	13 (c) The trust consists of the proceeds transferred to the trust under
73	73	14 IC 8-14-15-5 (before its repeal), and any income that accrues from the
74	74	15 investment of these proceeds.
75	75	2024 IN 1316—LS 6686/DI 134 2
76	76	1 SECTION 2. IC 8-14-15.1-7, AS AMENDED BY P.L.135-2022,
77	77	2 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
78	78	3 JULY 1, 2024]: Sec. 7. (a) The next level Indiana fund investment
79	79	4 board is established. The board consists of the following members:
80	80	5 (1) The secretary of commerce or the secretary's designee, who
81	81	6 shall serve as the chairperson of the board.
82	82	7 (2) The director of the office of management and budget or the
83	83	8 director's designee.
84	84	9 (3) Two (2) individuals appointed by the governor who have
85	85	10 experience and knowledge in investments.
86	86	11 (4) The treasurer of state or the treasurer's designee.
87	87	12 (5) One (1) individual appointed by the speaker of the house of
88	88	13 representatives who has experience and knowledge in venture
89	89	14 capital investments.
90	90	15 (6) One (1) individual appointed by the president pro tempore of
91	91	16 the senate who has experience and knowledge in venture capital
92	92	17 investments.
93	93	18 (b) The board shall serve as trustee of the trust and direct the
94	94	19 investment of the trust.
95	95	20 (c) The board shall adopt an investment policy in conformance with
96	96	21 section 8 of this chapter.
97	97	22 (d) The board shall hold regular meetings at least quarterly. The
98	98	23 board may hold special meetings at the call of the treasurer of state or
99	99	24 with a written request signed by at least two (2) members of the board.
100	100	25 (e) The board may hold its meetings at offices in Indiana that the
101	101	26 chairperson or the requesting members designate. All meetings must
102	102	27 be open to the public in accordance with IC 5-14-1.5. The board shall
103	103	28 keep a record of its proceedings.
104	104	29 (f) Five (5) Four (4) members of the board constitute a quorum for
105	105	30 the transaction of business of the board. Each member of the board is
106	106	31 entitled to one (1) vote. A vote of at least five (5) a simple majority of
107	107	32 those members of the board present voting on each individual
108	108	33 business issue is required for the board to adopt a resolution or take
109	109	34 other action at a regular or special meeting.
110	110	35 SECTION 3. IC 8-14-15.1-8, AS AMENDED BY P.L.201-2023,
111	111	36 SECTION 113, IS AMENDED TO READ AS FOLLOWS
112	112	37 [EFFECTIVE JULY 1, 2024]: Sec. 8. (a) The board shall adopt an
113	113	38 investment policy that includes all the following:
114	114	39 (1) Money in the trust may be invested in investments that:
115	115	40 (A) maximize risk appropriate returns, which may include the
116	116	41 purchase of equity or debt securities;
117	117	42 (B) make significant investments in Indiana funds and
118	118	2024 IN 1316—LS 6686/DI 134 3
119	119	1 companies; and
120	120	2 (C) have such other investment parameters and procedures as
121	121	3 the board determines are prudent to ensure that investments
122	122	4 are consistent with this chapter.
123	123	5 (2) Money in the trust shall be invested in investments that,
124	124	6 consistent with the other terms and objectives in the investment
125	125	7 policy, give preference to Indiana companies or Indiana venture
126	126	8 capital firms.
127	127	9 (3) Not more than twenty-five million dollars ($25,000,000) may
128	128	10 be invested in any one (1) particular investment fund or
129	129	11 investment firm unless the fund is specifically created to meet
130	130	12 a need in Indiana's ecosystem as determined by the board.
131	131	13 (4) Such other investment parameters and procedures as the board
132	132	14 determines are prudent to ensure that investments are consistent
133	133	15 with this chapter.
134	134	16 (b) The investment policy adopted by the board must give adequate
135	135	17 time to change current investments in a prudent manner.
136	136	18 (c) The board may contract with investment management
137	137	19 professionals, investment advisers, and legal counsel to assist in the
138	138	20 investment of the fund and may pay the expenses incurred under those
139	139	21 contracts from the fund.
140	140	22 (d) The board has the powers, duties, restrictions, limitations, and
141	141	23 penalties in connection with the board's and the treasurer of state's
142	142	24 investment and management of the assets of trust as if the following
143	143	25 provisions pertaining to the public pension and retirement funds made
144	144	26 reference to the trust and the board:
145	145	27 (1) IC 5-10.2-2-2.5.
146	146	28 (2) IC 5-10.2-2-13.
147	147	29 (3) IC 5-10.3-5-3.
148	148	30 (4) IC 5-10.3-5-4.
149	149	31 (5) IC 5-10.3-5-5.
150	150	32 (6) IC 5-10.3-5-6.
151	151	33 (7) IC 5-10.4-3-10.
152	152	34 (8) IC 5-10.4-3-12.
153	153	35 (9) IC 5-10.4-3-13.
154	154	36 (10) IC 5-10.4-3-14.
155	155	37 (11) IC 5-10.4-3-15.
156	156	38 (12) IC 5-10.4-3-16.
157	157	39 (e) Compliance with the established investment policy is definitive
158	158	40 evidence of compliance with the applicable investment standards in
159	159	41 subsection (d).
160	160	42 SECTION 4. IC 8-14-15.1-17 IS ADDED TO THE INDIANA
161	161	2024 IN 1316—LS 6686/DI 134 4
162	162	1 CODE AS A NEW SECTION TO READ AS FOLLOWS
163	163	2 [EFFECTIVE JULY 1, 2024]: Sec. 17. (a) The principal of the trust
164	164	3 may be used to make and secure lease rental payments that:
165	165	4 (1) are payable from grant proceeds from the federal
166	166	5 government; and
167	167	6 (2) will be used to pay bonds or notes issued by the authority
168	168	7 under IC 5-1.3.
169	169	8 (b) If grant proceeds received from the federal government are
170	170	9 not sufficient to pay a lease rental payment described in subsection
171	171	10 (a), the authority shall notify the trustee when the lease rental
172	172	11 payment is due and the amount of the shortfall. Upon receiving
173	173	12 notice from the authority, the trustee shall promptly transfer
174	174	13 money in the trust in the amount of the shortfall, or at the direction
175	175	14 of the authority, for the purpose of making the lease rental
176	176	15 payment.
177	177	16 (c) If a transfer is made under subsection (b), the state budget
178	178	17 director shall transfer funds from the state general fund to the
179	179	18 trust in an amount equal to the transfer made under subsection (b).
180	180	19 The state budget director shall submit a report to the budget
181	181	20 committee within thirty (30) days after the transfer to the trust.
182	182	21 SECTION 5. IC 8-14-15.2-5, AS ADDED BY P.L.189-2018,
183	183	22 SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
184	184	23 JULY 1, 2024]: Sec. 5. (a) The authority shall establish a next
185	185	24 generation trust fund to hold title to proceeds transferred to the trust
186	186	25 fund under IC 8-14-15.1-5.5 or section 10 of this chapter, to be used
187	187	26 exclusively for the provision of highways, roads, and bridges for the
188	188	27 benefit of the people of Indiana and the users of those facilities or for
189	189	28 the purpose set forth in section 10 of this chapter. Notwithstanding
190	190	29 any other law, title to any proceeds transferred to and held in the
191	191	30 trust as previously established under this chapter, including any
192	192	31 money and investments held in the trust and under any trust
193	193	32 agreement entered into by the authority and the treasurer of state
194	194	33 under section 6 of this chapter as previously in effect before July
195	195	34 1, 2024, shall be transferred to the next level Indiana trust fund
196	196	35 established under IC 8-14-15.1.
197	197	36 (b) The trust shall be established as a charitable trust, separate from
198	198	37 the state, but for the benevolent public purposes provided in this
199	199	38 section. Upon completion of the transfer to the next level Indiana
200	200	39 trust fund established under IC 8-14-15.1 as required by this
201	201	40 section, the trust shall cease and be of no further force or effect as
202	202	41 a charitable trust or otherwise.
203	203	42 (c) The trust consists of the proceeds transferred to the trust under
204	204	2024 IN 1316—LS 6686/DI 134 5
205	205	1 IC 8-14-15.1-5.5 or section 10 of this chapter, and any income that
206	206	2 accrues from the investment of these proceeds. All provisions of this
207	207	3 chapter that are inconsistent with this section are void and of no
208	208	4 further force or effect.
209	209	5 (d) The officers, directors, and employees of the authority, and
210	210	6 the treasurer of state (whether arising from the capacities of such
211	211	7 positions or from having entered into any trust agreement under
212	212	8 this chapter as previously in effect before July 1, 2024) are immune
213	213	9 from civil liability in connection with any transfer to the next level
214	214	10 Indiana trust fund under this section.
215	215	11 SECTION 6. IC 34-30-2.1-82.3 IS ADDED TO THE INDIANA
216	216	12 CODE AS A NEW SECTION TO READ AS FOLLOWS
217	217	13 [EFFECTIVE JULY 1, 2024]: Sec. 82.3. IC 8-14-15.2-5 (Concerning
218	218	14 officers, directors, and employees of the Indiana finance authority
219	219	15 and the treasurer of state for transfers made from the next
220	220	16 generation trust fund to the next level Indiana trust fund).
221	221	2024 IN 1316—LS 6686/DI 134