*HB1103.1*
February 6, 2025
HOUSE BILL No. 1103
_____
DIGEST OF HB 1103 (Updated February 5, 2025 11:57 am - DI 107)
Citations Affected: IC 4-1; IC 5-28; IC 21-30; IC 21-36; IC 24-12;
IC 32-22; IC 36-1.
Synopsis: Foreign trade offices. Provides that a state agency and the
Indiana economic development corporation may not establish an office
in a country that is a foreign adversary. Updates cross-references to the
federal code regulation's citation concerning foreign adversaries.
Makes a technical correction.
Effective: Upon passage.
Commons, Shonkwiler, Judy,
Morris
January 8, 2025, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
February 6, 2025, amended, reported — Do Pass.
HB 1103—LS 6596/DI 129 February 6, 2025
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1103
A BILL FOR AN ACT to amend the Indiana Code concerning
economic development.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-1-14.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]:
4 Chapter 14.5. Offices in Foreign Countries
5 Sec. 1. A state agency (as defined in IC 4-13-1-1(b)) may not
6 establish an office in a foreign country described in 15 CFR 791.4.
7 SECTION 2. IC 5-28-6-2, AS AMENDED BY P.L.197-2021,
8 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 UPON PASSAGE]: Sec. 2. (a) The corporation shall develop and
10 promote programs designed to make the best use of Indiana resources
11 to ensure a balanced economy and continuing economic growth for
12 Indiana, and, for those purposes, may do the following:
13 (1) Cooperate with federal, state, and local governments and
14 agencies in the coordination of programs to make the best use of
15 Indiana resources, based on a statewide study to determine
16 specific economic sectors that should be emphasized by the state
17 and by local economic development organizations within
HB 1103—LS 6596/DI 129 2
1 geographic regions in Indiana, and encourage collaboration with
2 local economic development organizations within geographic
3 regions in Indiana and with the various state economic
4 development organizations within the states contiguous to
5 Indiana.
6 (2) Receive and expend funds, grants, gifts, and contributions of
7 money, property, labor, interest accrued from loans made by the
8 corporation, and other things of value from public and private
9 sources, including grants from agencies and instrumentalities of
10 the state and the federal government. The corporation:
11 (A) may accept federal grants for providing planning
12 assistance, making grants, or providing other services or
13 functions necessary to political subdivisions, planning
14 commissions, or other public or private organizations;
15 (B) shall administer these grants in accordance with the terms
16 of the grants; and
17 (C) may contract with political subdivisions, planning
18 commissions, or other public or private organizations to carry
19 out the purposes for which the grants were made.
20 (3) Direct that assistance, information, and advice regarding the
21 duties and functions of the corporation be given to the corporation
22 by an officer, agent, or employee of the executive branch of the
23 state. The head of any other state department or agency may
24 assign one (1) or more of the department's or agency's employees
25 to the corporation on a temporary basis or may direct a division
26 or an agency under the department's or agency's supervision and
27 control to make a special study or survey requested by the
28 corporation.
29 (b) The corporation shall perform the following duties:
30 (1) Develop and implement industrial development programs to
31 encourage expansion of existing industrial, commercial, and
32 business facilities in Indiana and to encourage new industrial,
33 commercial, and business locations in Indiana.
34 (2) Assist businesses and industries in acquiring, improving, and
35 developing overseas markets and encourage international plant
36 locations in Indiana. The corporation, with the approval of the
37 governor, may establish foreign offices to assist in this function.
38 However, the corporation may not establish, and the governor
39 may not approve the establishment of, a foreign office in a
40 foreign country described in 15 CFR 791.4.
41 (3) Promote the growth of minority business enterprises by doing
42 the following:
HB 1103—LS 6596/DI 129 3
1 (A) Mobilizing and coordinating the activities, resources, and
2 efforts of governmental and private agencies, businesses, trade
3 associations, institutions, and individuals.
4 (B) Assisting minority businesses in obtaining governmental
5 or commercial financing for expansion or establishment of
6 new businesses or individual development projects.
7 (C) Aiding minority businesses in procuring contracts from
8 governmental or private sources, or both.
9 (D) Providing technical, managerial, and counseling assistance
10 to minority business enterprises.
11 (4) Assist the office of the lieutenant governor in:
12 (A) community economic development planning;
13 (B) implementation of programs designed to further
14 community economic development; and
15 (C) the development and promotion of Indiana's tourist
16 resources.
17 (5) Assist the secretary of agriculture and rural development in
18 promoting and marketing of Indiana's agricultural products and
19 provide assistance to the director of the Indiana state department
20 of agriculture.
21 (6) With the approval of the governor, implement federal
22 programs delegated to the state to carry out the purposes of this
23 article.
24 (7) Promote the growth of small businesses by doing the
25 following:
26 (A) Assisting small businesses in obtaining and preparing the
27 permits required to conduct business in Indiana.
28 (B) Serving as a liaison between small businesses and state
29 agencies.
30 (C) Providing information concerning business assistance
31 programs available through government agencies and private
32 sources.
33 (8) Establish a transparency portal on its current Internet site on
34 the world wide web. website. The page must provide the
35 following:
36 (A) By program, cumulative information on the total amount
37 of incentives awarded, the total number of companies that
38 received the incentives and were assisted in a year, and the
39 names and addresses of those companies.
40 (B) A mechanism on the page whereby the public may request
41 further information online about specific programs or
42 incentives awarded.
HB 1103—LS 6596/DI 129 4
1 (C) A mechanism for the public to receive an electronic
2 response.
3 (D) Access to the following:
4 (i) Any information or report that is required by statute to be
5 included in the economic incentives and compliance report
6 submitted under IC 5-28-28.
7 (ii) Final offer of public financial resources to which the
8 corporation is a party.
9 (iii) Reports that the corporation submitted to the general
10 assembly.
11 (c) The corporation may do the following:
12 (1) Disseminate information concerning the industrial,
13 commercial, governmental, educational, cultural, recreational,
14 agricultural, and other advantages of Indiana.
15 (2) Plan, direct, and conduct research activities.
16 (3) Assist in community economic development planning and the
17 implementation of programs designed to further community
18 economic development.
19 SECTION 3. IC 21-30-7-4, AS ADDED BY P.L.142-2024,
20 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 UPON PASSAGE]: Sec. 4. As used in this chapter, "foreign adversary"
22 includes the following:
23 (1) A foreign government listed in 15 CFR 7.4. 15 CFR 791.4.
24 (2) A country designated as a threat to critical infrastructure by
25 the governor under IC 1-1-16-8.
26 SECTION 4. IC 21-36-1-1.3, AS ADDED BY P.L.142-2024,
27 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 UPON PASSAGE]: Sec. 1.3. "Foreign adversary" includes the
29 following:
30 (1) A foreign government listed in 15 CFR 7.4. 15 CFR 791.4.
31 (2) A country designated as a threat to critical infrastructure by
32 the governor under IC 1-1-16-8.
33 SECTION 5. IC 24-12-11-1, AS ADDED BY P.L.140-2024,
34 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 UPON PASSAGE]: Sec. 1. The following definitions apply throughout
36 this chapter:
37 (1) "Commercial litigation financier" means a person that enters
38 into, or offers to enter into, a commercial litigation financing
39 agreement with a plaintiff in a civil proceeding. The term does not
40 include a nonprofit organization.
41 (2) "Commercial litigation financing agreement" means a
42 nonrecourse agreement that a commercial litigation financier
HB 1103—LS 6596/DI 129 5
1 enters into, or offers to enter into, to provide funding to support
2 a plaintiff or the plaintiff's attorney in prosecuting the civil
3 proceeding, if the repayment of the funded amount is:
4 (A) required only if the plaintiff prevails in the civil
5 proceeding; and
6 (B) sourced entirely from the proceeds of the civil proceeding,
7 whether the proceeds result from a judgment, a settlement, or
8 some other resolution.
9 The term does not include a civil proceeding advance payment
10 transaction, an agreement between an attorney and a client for the
11 attorney to provide legal services on a contingency fee basis or to
12 advance the client's legal costs, a health insurance plan or
13 agreement, a repayment agreement of a financial institution if
14 repayment is not contingent upon the outcome of the civil
15 proceeding, a funding agreement to a nonprofit organization that
16 represents a client on a pro bono basis, or an agreement of an
17 assigned claim to prosecute an environmental contamination
18 matter.
19 (3) "Foreign country of concern" includes the following:
20 (A) A foreign government listed in 15 CFR 7.4. 15 CFR
21 791.4.
22 (B) A country designated as a threat to critical infrastructure
23 by the governor under IC 1-1-16-8.
24 (4) "Foreign entity of concern" means a partnership, association,
25 corporation, organization, or other combination of persons:
26 (A) organized or incorporated in a foreign country of concern;
27 (B) owned or controlled by the government, a political
28 subdivision, or a political party of a foreign country of
29 concern;
30 (C) that has a principal place of business in a foreign country
31 of concern; or
32 (D) that is owned, organized, or controlled by or affiliated with
33 a foreign organization that has been:
34 (i) placed on the federal Office of Foreign Assets Control
35 specially designated nationals and blocked persons list
36 ("SDN List"); or
37 (ii) designated by the United States Secretary of State as a
38 foreign terrorist organization.
39 (5) "Foreign person" means:
40 (A) an individual who is not a citizen of the United States or
41 an alien lawfully admitted for permanent residence in the
42 United States;
HB 1103—LS 6596/DI 129 6
1 (B) an unincorporated association, of which a majority of
2 members are not citizens of the United States or aliens
3 lawfully admitted for permanent residence in the United
4 States;
5 (C) a corporation that is not incorporated in the United States;
6 (D) the government, a political subdivision, or a political party
7 of a country other than the United States;
8 (E) an entity that is organized under the laws of a country other
9 than the United States;
10 (F) an entity that has a principal place of business in a country
11 other than the United States and that has shares or other
12 ownership interest held by the government or a government
13 official of a country other than that of the United States; and
14 (G) an employee, official, or member of any entity described
15 in clauses (B) through (F).
16 SECTION 6. IC 32-22-3-3.5, AS ADDED BY P.L.168-2024,
17 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 UPON PASSAGE]: Sec. 3.5. As used in this chapter, "prohibited
19 person" includes:
20 (1) an individual who is a citizen of a foreign adversary (as
21 defined in 15 CFR 7.4); 15 CFR 791.4); or
22 (2) a business entity that is:
23 (A) wholly owned by, or the majority of stock or other
24 ownership interest of the business entity is held or controlled
25 by:
26 (i) individuals who are citizens of a foreign adversary (as
27 defined in 15 CFR 7.4); 15 CFR 791.4); or
28 (ii) a business entity or another entity, including a
29 governmental entity, that is owned or controlled by citizens
30 of, or is directly controlled by the government of, a foreign
31 adversary (as defined in 15 CFR 7.4); 15 CFR 791.4); or
32 (B) headquartered in a foreign adversary (as defined in 15
33 CFR 7.4). 15 CFR 791.4).
34 The term, as used in subdivisions (1) and (2)(A)(i), does not include an
35 individual who holds dual citizenship with a foreign adversary (as
36 defined in 15 CFR 7.4) 15 CFR 791.4) and the United States or an
37 individual who is a lawful permanent resident of the United States.
38 SECTION 7. IC 36-1-32-1, AS ADDED BY P.L.136-2024,
39 SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 UPON PASSAGE]: Sec. 1. As used in this chapter, "prohibited person"
41 means a city, town, province, county, school, college, or university
42 located in a foreign adversary (as defined in 15 CFR 7.4). 15 CFR
HB 1103—LS 6596/DI 129 7
1 791.4).
2 SECTION 8. An emergency is declared for this act.
HB 1103—LS 6596/DI 129 8
COMMITTEE REPORT
Mr. Speaker: Your Committee on Commerce, Small Business and
Economic Development, to which was referred House Bill 1103, has
had the same under consideration and begs leave to report the same
back to the House with the recommendation that said bill be amended
as follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 4-1-14.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 14.5. Offices in Foreign Countries
Sec. 1. A state agency (as defined in IC 4-13-1-1(b)) may not
establish an office in a foreign country described in 15 CFR 791.4.".
Page 2, line 33, delete "in the" and insert "in a foreign country
described in 15 CFR 791.4.".
Page 2, delete line 34.
Page 4, between lines 12 and 13, begin a new paragraph and insert:
"SECTION 3. IC 21-30-7-4, AS ADDED BY P.L.142-2024,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. As used in this chapter, "foreign adversary"
includes the following:
(1) A foreign government listed in 15 CFR 7.4. 15 CFR 791.4.
(2) A country designated as a threat to critical infrastructure by
the governor under IC 1-1-16-8.
SECTION 4. IC 21-36-1-1.3, AS ADDED BY P.L.142-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1.3. "Foreign adversary" includes the
following:
(1) A foreign government listed in 15 CFR 7.4. 15 CFR 791.4.
(2) A country designated as a threat to critical infrastructure by
the governor under IC 1-1-16-8.
SECTION 5. IC 24-12-11-1, AS ADDED BY P.L.140-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. The following definitions apply throughout
this chapter:
(1) "Commercial litigation financier" means a person that enters
into, or offers to enter into, a commercial litigation financing
agreement with a plaintiff in a civil proceeding. The term does not
include a nonprofit organization.
(2) "Commercial litigation financing agreement" means a
HB 1103—LS 6596/DI 129 9
nonrecourse agreement that a commercial litigation financier
enters into, or offers to enter into, to provide funding to support
a plaintiff or the plaintiff's attorney in prosecuting the civil
proceeding, if the repayment of the funded amount is:
(A) required only if the plaintiff prevails in the civil
proceeding; and
(B) sourced entirely from the proceeds of the civil proceeding,
whether the proceeds result from a judgment, a settlement, or
some other resolution.
The term does not include a civil proceeding advance payment
transaction, an agreement between an attorney and a client for the
attorney to provide legal services on a contingency fee basis or to
advance the client's legal costs, a health insurance plan or
agreement, a repayment agreement of a financial institution if
repayment is not contingent upon the outcome of the civil
proceeding, a funding agreement to a nonprofit organization that
represents a client on a pro bono basis, or an agreement of an
assigned claim to prosecute an environmental contamination
matter.
(3) "Foreign country of concern" includes the following:
(A) A foreign government listed in 15 CFR 7.4. 15 CFR
791.4.
(B) A country designated as a threat to critical infrastructure
by the governor under IC 1-1-16-8.
(4) "Foreign entity of concern" means a partnership, association,
corporation, organization, or other combination of persons:
(A) organized or incorporated in a foreign country of concern;
(B) owned or controlled by the government, a political
subdivision, or a political party of a foreign country of
concern;
(C) that has a principal place of business in a foreign country
of concern; or
(D) that is owned, organized, or controlled by or affiliated with
a foreign organization that has been:
(i) placed on the federal Office of Foreign Assets Control
specially designated nationals and blocked persons list
("SDN List"); or
(ii) designated by the United States Secretary of State as a
foreign terrorist organization.
(5) "Foreign person" means:
(A) an individual who is not a citizen of the United States or
an alien lawfully admitted for permanent residence in the
HB 1103—LS 6596/DI 129 10
United States;
(B) an unincorporated association, of which a majority of
members are not citizens of the United States or aliens
lawfully admitted for permanent residence in the United
States;
(C) a corporation that is not incorporated in the United States;
(D) the government, a political subdivision, or a political party
of a country other than the United States;
(E) an entity that is organized under the laws of a country other
than the United States;
(F) an entity that has a principal place of business in a country
other than the United States and that has shares or other
ownership interest held by the government or a government
official of a country other than that of the United States; and
(G) an employee, official, or member of any entity described
in clauses (B) through (F).
SECTION 6. IC 32-22-3-3.5, AS ADDED BY P.L.168-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3.5. As used in this chapter, "prohibited
person" includes:
(1) an individual who is a citizen of a foreign adversary (as
defined in 15 CFR 7.4); 15 CFR 791.4); or
(2) a business entity that is:
(A) wholly owned by, or the majority of stock or other
ownership interest of the business entity is held or controlled
by:
(i) individuals who are citizens of a foreign adversary (as
defined in 15 CFR 7.4); 15 CFR 791.4); or
(ii) a business entity or another entity, including a
governmental entity, that is owned or controlled by citizens
of, or is directly controlled by the government of, a foreign
adversary (as defined in 15 CFR 7.4); 15 CFR 791.4); or
(B) headquartered in a foreign adversary (as defined in 15
CFR 7.4). 15 CFR 791.4).
The term, as used in subdivisions (1) and (2)(A)(i), does not include an
individual who holds dual citizenship with a foreign adversary (as
defined in 15 CFR 7.4) 15 CFR 791.4) and the United States or an
individual who is a lawful permanent resident of the United States.
SECTION 7. IC 36-1-32-1, AS ADDED BY P.L.136-2024,
SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. As used in this chapter, "prohibited person"
means a city, town, province, county, school, college, or university
HB 1103—LS 6596/DI 129 11
located in a foreign adversary (as defined in 15 CFR 7.4). 15 CFR
791.4).".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1103 as introduced.)
MORRIS
Committee Vote: yeas 9, nays 0.
HB 1103—LS 6596/DI 129