*SB0295.1*
January 26, 2024
SENATE BILL No. 295
_____
DIGEST OF SB 295 (Updated January 25, 2024 12:04 pm - DI 119)
Citations Affected: IC 5-28; IC 36-7.
Synopsis: Indiana economic development corporation. Provides for
appointment to the board of the Indiana economic development
corporation (IEDC) of two nonvoting, advisory members who are
members of the general assembly. Requires the IEDC, before
purchasing land in a county that exceeds 100 acres, to first give notice
to the county or municipality, or both, in which the land is located not
later than 30 days before the closing date for the purchase. Provides
that a school corporation that receives a transfer of incremental
property tax revenue from a local innovation development district fund
may use those funds with no restrictions or specified uses.
Effective: July 1, 2024.
Buchanan, Charbonneau, Deery,
Gaskill, Rogers
January 16, 2024, read first time and referred to Committee on Commerce and Technology.
January 25, 2024, amended, reported favorably — Do Pass.
SB 295—LS 7020/DI 120 January 26, 2024
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.
SENATE BILL No. 295
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 5-28-4-2, AS AMENDED BY P.L.237-2017,
2 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 2. (a) The board is composed of the following
4 members: none of whom may be members of the general assembly:
5 (1) The governor.
6 (2) Eleven (11) individuals appointed by the governor.
7 (3) The members (if any) appointed by the governor under
8 subsection (c).
9 (4) Two (2) nonvoting, advisory members who are members
10 of the general assembly appointed under subsection (d).
11 The individuals appointed under subdivision (2) and the individuals
12 appointed under subsection (c) must be employed in or retired from the
13 private or nonprofit sector or academia and may not be members of
14 the general assembly.
15 (b) When making appointments under subsection (a)(2), the
16 governor shall appoint the following:
17 (1) At least five (5) members belonging to the same political party
SB 295—LS 7020/DI 120 2
1 as the governor.
2 (2) At least three (3) members who belong to a major political
3 party (as defined in IC 3-5-2-30) other than the party of which the
4 governor is a member.
5 (c) In addition to the members appointed under subsection (a)(2),
6 the governor may appoint not more than three (3) additional members
7 to the board. If the governor appoints more than one (1) additional
8 member to the board under this subsection, at least one (1) of the
9 additional members must belong to a major political party (as defined
10 in IC 3-5-2-30) other than the party of which the governor is a member.
11 (d) The members described in subsection (a)(4) are appointed as
12 follows:
13 (1) The speaker of the house of representatives shall appoint
14 one (1) individual who is a member of the house of
15 representatives.
16 (2) The president pro tempore of the senate shall appoint one
17 (1) individual who is a member of the senate.
18 (e) The following apply to the members appointed under
19 subsection (d):
20 (1) A member appointed under subsection (d):
21 (A) serves at the pleasure of the member's appointing
22 authority; and
23 (B) may be reappointed to successive terms.
24 (2) A vacancy in an appointment under subsection (d)(1) shall
25 be filled by the speaker of the house of representatives.
26 (3) A vacancy in an appointment under subsection (d)(2) shall
27 be filled by the president pro tempore of the senate.
28 (4) An individual appointed to fill a vacancy in an
29 appointment under subsection (d) serves for the unexpired
30 term of the individual's predecessor.
31 SECTION 2. IC 5-28-4-3, AS AMENDED BY P.L.237-2017,
32 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2024]: Sec. 3. (a) Except as provided in subsection (d), the
34 term of office of an appointed member of the board is four (4) years.
35 (b) Each member appointed under section 2(a)(2) or 2(c) of this
36 chapter holds office for the term of appointment and continues to serve
37 after expiration of the appointment until a successor is appointed and
38 qualified. A member is eligible for reappointment.
39 (c) Members of the board appointed under section 2(a)(2) or 2(c) of
40 this chapter serve at the pleasure of the governor.
41 (d) This subsection applies to a member of the board appointed
42 under section 2(d) of this chapter. The initial term of a member is
SB 295—LS 7020/DI 120 3
1 one (1) year and expires June 30, 2025. The term of a member
2 appointed thereafter is two (2) years and expires June 30 of the
3 odd-numbered year.
4 SECTION 3. IC 5-28-4-5, AS ADDED BY P.L.4-2005, SECTION
5 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
6 2024]: Sec. 5. (a) The members of the board who are not members of
7 the general assembly:
8 (1) are entitled to a salary per diem for attending meetings equal
9 to the per diem provided by law for members of the general
10 assembly; The members of the board and
11 (2) are also entitled to receive reimbursement for traveling
12 expenses as provided under IC 4-13-1-4 and other expenses
13 actually incurred in connection with the members' duties as
14 approved by the budget agency.
15 (b) Each member of the board who is a member of the general
16 assembly is entitled to receive the same per diem, mileage, and
17 travel allowances paid to legislative members of interim study
18 committees established by the legislative council. Per diem,
19 mileage, and travel allowances paid under this subsection shall be
20 paid from appropriations made to the legislative council or the
21 legislative services agency.
22 SECTION 4. IC 5-28-4-6, AS AMENDED BY P.L.237-2017,
23 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2024]: Sec. 6. (a) The following constitutes a quorum for the
25 transaction of business by the board of the corporation:
26 (1) Seven (7) voting members of the board, if:
27 (A) no additional members are appointed under section 2(c) of
28 this chapter; or
29 (B) one (1) additional member is appointed under section 2(c)
30 of this chapter.
31 (2) Eight (8) voting members of the board, if either two (2) or
32 three (3) additional members are appointed under section 2(c) of
33 this chapter.
34 (b) The following number of affirmative votes is necessary for
35 action to be taken by the board:
36 (1) The affirmative vote of at least seven (7) members, if:
37 (A) no additional members are appointed under section 2(c) of
38 this chapter; or
39 (B) one (1) additional member is appointed under section 2(c)
40 of this chapter.
41 (2) The affirmative vote of at least eight (8) members, if either
42 two (2) or three (3) additional members are appointed under
SB 295—LS 7020/DI 120 4
1 section 2(c) of this chapter.
2 (c) Members of the board may not vote by proxy.
3 SECTION 5. IC 5-28-5-2, AS ADDED BY P.L.4-2005, SECTION
4 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
5 2024]: Sec. 2. (a) Subject to subsection (b), the corporation is granted
6 all powers necessary or appropriate to carry out the corporation's public
7 and corporate purposes under this chapter.
8 (b) Before the corporation may purchase land in a county that
9 in total exceeds one hundred (100) acres whether acquired in one
10 (1) or a series of transactions, the corporation must first give notice
11 to the county or municipality, or both, in which the land is located
12 not later than thirty (30) days before the closing date for the
13 purchase or purchases.
14 SECTION 6. IC 36-7-32.5-12, AS ADDED BY P.L.135-2022,
15 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2024]: Sec. 12. (a) If the total costs and benefits of the
17 proposed investment of an innovation development district are
18 expected to be an amount less than two billion dollars
19 ($2,000,000,000), the following apply:
20 (1) The executive, or, if applicable, the executives, and the
21 corporation shall enter into an agreement establishing the terms
22 and conditions governing the innovation development district in
23 accordance with this section.
24 (2) If the executive, or, if applicable, the executives, and the
25 corporation cannot enter into an agreement under subdivision (1),
26 the designation of territory under section 9 of this chapter is no
27 longer effective and the innovation development district may not
28 be designated or otherwise established under this chapter.
29 (b) The agreement must include the following provisions:
30 (1) A description of the area, including a list of all parcels to be
31 included within the innovation development district.
32 (2) Covenants and restrictions, if any, upon all or a part of the
33 properties contained within the innovation development district
34 and terms of enforcement of any covenants or restrictions.
35 (3) The due diligence and financial commitments of any party to
36 the agreement and of any owner or developer of property within
37 the innovation development district.
38 (4) The financial projections of the innovation development
39 district.
40 (5) The proposed use of the:
41 (A) net increment; and
42 (B) incremental property tax amount described in section 14(c)
SB 295—LS 7020/DI 120 5
1 of this chapter;
2 that is captured within the innovation development district.
3 (6) The aggregate percentage of annual incremental property tax
4 revenue that will be transferred to the city, town, county, or school
5 corporation, or, if applicable, the cities, towns, counties, or school
6 corporations, under section 19(e) of this chapter. The aggregate
7 percentage transferred may not be less than twelve percent (12%)
8 of the annual amount of incremental property tax revenue
9 deposited in the local innovation development district fund
10 established by section 19 of this chapter. A school corporation
11 that receives a portion of the aggregate percentage of
12 incremental property tax revenue transferred under this
13 chapter may use those funds with no restrictions or specified
14 uses.
15 (7) Subject to the limitations of this chapter, the duration of the
16 designation of an area as an innovation development district.
17 (8) The terms of enforcement of the agreement, which may
18 include the definition of events of default, cure periods, legal and
19 equitable remedies and rights, and penalties and damages, actual
20 or liquidated, upon the occurrence of an event of default.
21 (9) The public facilities to be developed for the innovation
22 development district and the estimated costs of those public
23 facilities.
24 (c) An executive may discuss the terms of the agreement described
25 in this section and hold a meeting as an executive session under
26 IC 5-14-1.5-6.1 with:
27 (1) in the case of a city other than a consolidated city, the
28 common council;
29 (2) in the case of a consolidated city, or a county having a
30 consolidated city, the city-county council;
31 (3) in the case of a town, the town council; and
32 (4) in the case of a county that does not have a consolidated city,
33 the board of county commissioners.
34 (d) Within fifteen (15) days of entering into an agreement under
35 subsection (a), the corporation shall submit a written report on the
36 agreement to the budget committee.
37 (e) Neither an executive nor the corporation may exercise the power
38 of eminent domain within an innovation development district.
SB 295—LS 7020/DI 120 6
COMMITTEE REPORT
Madam President: The Senate Committee on Commerce and
Technology, to which was referred Senate Bill No. 295, 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 11 through 27, begin a new paragraph and
insert:
"(d) The members described in subsection (a)(4) are appointed
as follows:
(1) The speaker of the house of representatives shall appoint
one (1) individual who is a member of the house of
representatives.
(2) The president pro tempore of the senate shall appoint one
(1) individual who is a member of the senate.
(e) The following apply to the members appointed under
subsection (d):
(1) A member appointed under subsection (d):
(A) serves at the pleasure of the member's appointing
authority; and
(B) may be reappointed to successive terms.
(2) A vacancy in an appointment under subsection (d)(1) shall
be filled by the speaker of the house of representatives.
(3) A vacancy in an appointment under subsection (d)(2) shall
be filled by the president pro tempore of the senate.
(4) An individual appointed to fill a vacancy in an
appointment under subsection (d) serves for the unexpired
term of the individual's predecessor.".
Page 3, delete lines 1 through 14, begin a new paragraph and insert:
"SECTION 3. IC 5-28-4-5, AS ADDED BY P.L.4-2005, SECTION
34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2024]: Sec. 5. (a) The members of the board who are not members of
the general assembly:
(1) are entitled to a salary per diem for attending meetings equal
to the per diem provided by law for members of the general
assembly; The members of the board and
(2) are also entitled to receive reimbursement for traveling
expenses as provided under IC 4-13-1-4 and other expenses
actually incurred in connection with the members' duties as
approved by the budget agency.
(b) Each member of the board who is a member of the general
assembly is entitled to receive the same per diem, mileage, and
SB 295—LS 7020/DI 120 7
travel allowances paid to legislative members of interim study
committees established by the legislative council. Per diem,
mileage, and travel allowances paid under this subsection shall be
paid from appropriations made to the legislative council or the
legislative services agency.
SECTION 4. IC 5-28-4-6, AS AMENDED BY P.L.237-2017,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 6. (a) The following constitutes a quorum for the
transaction of business by the board of the corporation:
(1) Seven (7) voting members of the board, if:
(A) no additional members are appointed under section 2(c) of
this chapter; or
(B) one (1) additional member is appointed under section 2(c)
of this chapter.
(2) Eight (8) voting members of the board, if either two (2) or
three (3) additional members are appointed under section 2(c) of
this chapter.
(b) The following number of affirmative votes is necessary for
action to be taken by the board:
(1) The affirmative vote of at least seven (7) members, if:
(A) no additional members are appointed under section 2(c) of
this chapter; or
(B) one (1) additional member is appointed under section 2(c)
of this chapter.
(2) The affirmative vote of at least eight (8) members, if either
two (2) or three (3) additional members are appointed under
section 2(c) of this chapter.
(c) Members of the board may not vote by proxy.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 295 as introduced.)
BUCHANAN, Chairperson
Committee Vote: Yeas 10, Nays 0.
SB 295—LS 7020/DI 120