LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6670 NOTE PREPARED: Dec 29, 2024
BILL NUMBER: HB 1269 BILL AMENDED:
SUBJECT: Indiana Economic Development Corporation.
FIRST AUTHOR: Rep. Commons BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
XFEDERAL
Summary of Legislation: Appointment: The bill 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.
Land Purchase Notice and Appraisal: The bill requires the IEDC, before purchasing land that exceeds 100
acres in a county, 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. The bill also specifies additional procedures that
the IEDC must take when acquiring land.
Tracking Mechanism: The bill requires the IEDC to establish a mechanism to track the impacts of economic
development projects based on: (1) wages paid to employees; and (2) financial impacts to local governments.
The bill also sets forth the information required to be reported on the tracking mechanism, which must be
updated quarterly and posted quarterly on the IEDC's transparency portal. The bill requires the IEDC to
provide an annual report of the information reported on the tracking mechanism and other information related
to economic development to the General Assembly.
Dedication to Qualified Communities: The bill requires the IEDC to dedicate at least 5% of the funds
appropriated to the IEDC for economic development purposes in FY 2026 and FY 2027 for economic
development projects located in communities that meet specified criteria.
Effective Date: Upon passage; July 1, 2025.
Explanation of State Expenditures: Appointment: The bill adds two members of the General Assembly
to the IEDC board, appointed by the Speaker of the House of Representatives and President Pro Tempore
of the Senate. The legislative members of the board would receive a salary per diem and reimbursement for
travel expenses, which would be paid from the appropriation made to the Legislative Council or the
Legislative Services Agency.
HB 1269 1 Land Purchase Notice and Appraisal: In addition to the requirement to notify a county and/or municipality
prior to certain land purchases, the bill also requires the IEDC, within 30 days of the transaction, to have the
land appraised by two appraisers and make the report available to the public upon request. The requirements
of written notice and land appraisal can be implemented within existing resource levels.
Tracking Mechanism: The bill requires the IEDC to track certain data related to the impact of economic
development projects and post the information quarterly on the IEDC’s transparency portal. The bill also
requires the IEDC to submit an annual report to the General Assembly before January 15 of each year. The
requirements of establishing a tracking mechanism, updating information quarterly, and submitting an annual
report would increase the workload and expenditures of the IEDC. It is likely that this function could be
incorporated into the duties of IEDC using existing resources.
Dedication to Qualified Communities: The bill requires the IEDC to dedicate at least 5% of the funds
appropriated for economic development purposes in FY 2026 and FY 2027 for economic development
projects in counties with a population of less than 50,000. [The IEDC's total appropriations, including
General Fund, dedicated funds, and federal funds, were $512.2 M in FY 2024 and $362.2 M in FY 2025.]
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana Economic Development Corporation; General Assembly.
Local Agencies Affected:
Information Sources: Indiana Transparency Portal, Expenditures Data,
https://hub.mph.in.gov/dataset/expenditures-data;
State Budget Agency,
https://www.in.gov/sba/budget-information/budget-data/2023-2025-budget/2023-2025-as-passed-budget/.
Fiscal Analyst: Qian Li, 317-232-9671.
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