IN
Indiana House Bill HB1269

Indiana 2025 Regular Session

Indiana House Bill HB1269 Compare Versions

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22 Introduced Version
33 HOUSE BILL No. 1269
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 5-28.
77 Synopsis: Indiana economic development corporation. Provides for
88 appointment to the board of the Indiana economic development
99 corporation (IEDC) of two nonvoting, advisory members who are
1010 members of the general assembly. Requires the IEDC, before
1111 purchasing land that exceeds 100 acres in a county, to first give notice
1212 to the county or municipality, or both, in which the land is located not
1313 later than 30 days before the closing date for the purchase. Specifies
1414 additional procedures that the IEDC must take when acquiring land.
1515 Requires the IEDC to establish a mechanism to track the impacts of
1616 economic development projects based on: (1) wages paid to employees;
1717 and (2) financial impacts to local governments. Sets forth the
1818 information required to be reported on the tracking mechanism, which
1919 must be updated quarterly and posted quarterly on the IEDC's
2020 transparency portal. Requires the IEDC to provide an annual report of
2121 the information reported on the tracking mechanism and other
2222 information related to economic development to the general assembly.
2323 Requires the IEDC to dedicate at least 5% of the funds appropriated to
2424 the IEDC for economic development purposes in state fiscal years 2026
2525 and 2027 for economic development projects located in communities
2626 that meet specified criteria.
2727 Effective: Upon passage; July 1, 2025.
2828 Commons, Greene, Shonkwiler,
2929 Haggard
3030 January 13, 2025, read first time and referred to Committee on Government and Regulatory
3131 Reform.
3232 2025 IN 1269—LS 6670/DI 129 Introduced
3333 First Regular Session of the 124th General Assembly (2025)
3434 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3535 Constitution) is being amended, the text of the existing provision will appear in this style type,
3636 additions will appear in this style type, and deletions will appear in this style type.
3737 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
3838 provision adopted), the text of the new provision will appear in this style type. Also, the
3939 word NEW will appear in that style type in the introductory clause of each SECTION that adds
4040 a new provision to the Indiana Code or the Indiana Constitution.
4141 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
4242 between statutes enacted by the 2024 Regular Session of the General Assembly.
4343 HOUSE BILL No. 1269
4444 A BILL FOR AN ACT to amend the Indiana Code concerning state
4545 and local administration.
4646 Be it enacted by the General Assembly of the State of Indiana:
4747 1 SECTION 1. IC 5-28-4-2, AS AMENDED BY P.L.237-2017,
4848 2 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4949 3 UPON PASSAGE]: Sec. 2. (a) The board is composed of the following
5050 4 members: none of whom may be members of the general assembly:
5151 5 (1) The governor.
5252 6 (2) Eleven (11) individuals appointed by the governor.
5353 7 (3) The members (if any) appointed by the governor under
5454 8 subsection (c).
5555 9 (4) Two (2) nonvoting, advisory members who are members
5656 10 of the general assembly appointed under subsection (d).
5757 11 The individuals appointed under subdivision (2) and the individuals
5858 12 appointed under subsection (c) must be employed in or retired from the
5959 13 private or nonprofit sector or academia and may not be members of
6060 14 the general assembly.
6161 15 (b) When making appointments under subsection (a)(2), the
6262 16 governor shall appoint the following:
6363 17 (1) At least five (5) members belonging to the same political party
6464 2025 IN 1269—LS 6670/DI 129 2
6565 1 as the governor.
6666 2 (2) At least three (3) members who belong to a major political
6767 3 party (as defined in IC 3-5-2-30) other than the party of which the
6868 4 governor is a member.
6969 5 (c) In addition to the members appointed under subsection (a)(2),
7070 6 the governor may appoint not more than three (3) additional members
7171 7 to the board. If the governor appoints more than one (1) additional
7272 8 member to the board under this subsection, at least one (1) of the
7373 9 additional members must belong to a major political party (as defined
7474 10 in IC 3-5-2-30) other than the party of which the governor is a member.
7575 11 (d) The members described in subsection (a)(4) are appointed as
7676 12 follows:
7777 13 (1) The speaker of the house of representatives shall appoint
7878 14 one (1) individual who is a member of the house of
7979 15 representatives.
8080 16 (2) The president pro tempore of the senate shall appoint one
8181 17 (1) individual who is a member of the senate.
8282 18 (e) The following apply to the members appointed under
8383 19 subsection (d):
8484 20 (1) A member appointed under subsection (d):
8585 21 (A) serves at the pleasure of the member's appointing
8686 22 authority; and
8787 23 (B) may be reappointed to successive terms.
8888 24 (2) A vacancy in an appointment under subsection (d)(1) shall
8989 25 be filled by the speaker of the house of representatives.
9090 26 (3) A vacancy in an appointment under subsection (d)(2) shall
9191 27 be filled by the president pro tempore of the senate.
9292 28 (4) An individual appointed to fill a vacancy in an
9393 29 appointment under subsection (d) serves for the unexpired
9494 30 term of the individual's predecessor.
9595 31 SECTION 2. IC 5-28-4-3, AS AMENDED BY P.L.237-2017,
9696 32 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9797 33 UPON PASSAGE]: Sec. 3. (a) Except as provided in subsection (d),
9898 34 the term of office of an appointed member of the board is four (4)
9999 35 years.
100100 36 (b) Each member appointed under section 2(a)(2) or 2(c) of this
101101 37 chapter holds office for the term of appointment and continues to serve
102102 38 after expiration of the appointment until a successor is appointed and
103103 39 qualified. A member is eligible for reappointment.
104104 40 (c) Members of the board appointed under section 2(a)(2) or 2(c) of
105105 41 this chapter serve at the pleasure of the governor.
106106 42 (d) This subsection applies to a member of the board appointed
107107 2025 IN 1269—LS 6670/DI 129 3
108108 1 under section 2(d) of this chapter. The term of a member is two (2)
109109 2 years and expires June 30 of the odd-numbered year.
110110 3 SECTION 3. IC 5-28-4-5, AS ADDED BY P.L.4-2005, SECTION
111111 4 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
112112 5 PASSAGE]: Sec. 5. (a) The members of the board who are not
113113 6 members of the general assembly:
114114 7 (1) are entitled to a salary per diem for attending meetings equal
115115 8 to the per diem provided by law for members of the general
116116 9 assembly; The members of the board and
117117 10 (2) are also entitled to receive reimbursement for traveling
118118 11 expenses as provided under IC 4-13-1-4 and other expenses
119119 12 actually incurred in connection with the members' duties as
120120 13 approved by the budget agency.
121121 14 (b) Each member of the board who is a member of the general
122122 15 assembly is entitled to receive the same per diem, mileage, and
123123 16 travel allowances paid to legislative members of interim study
124124 17 committees established by the legislative council. Per diem,
125125 18 mileage, and travel allowances paid under this subsection shall be
126126 19 paid from appropriations made to the legislative council or the
127127 20 legislative services agency.
128128 21 SECTION 4. IC 5-28-4-6, AS AMENDED BY P.L.237-2017,
129129 22 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
130130 23 UPON PASSAGE]: Sec. 6. (a) The following constitutes a quorum for
131131 24 the transaction of business by the board of the corporation:
132132 25 (1) Seven (7) voting members of the board, if:
133133 26 (A) no additional members are appointed under section 2(c) of
134134 27 this chapter; or
135135 28 (B) one (1) additional member is appointed under section 2(c)
136136 29 of this chapter.
137137 30 (2) Eight (8) voting members of the board, if either two (2) or
138138 31 three (3) additional members are appointed under section 2(c) of
139139 32 this chapter.
140140 33 (b) The following number of affirmative votes is necessary for
141141 34 action to be taken by the board:
142142 35 (1) The affirmative vote of at least seven (7) members, if:
143143 36 (A) no additional members are appointed under section 2(c) of
144144 37 this chapter; or
145145 38 (B) one (1) additional member is appointed under section 2(c)
146146 39 of this chapter.
147147 40 (2) The affirmative vote of at least eight (8) members, if either
148148 41 two (2) or three (3) additional members are appointed under
149149 42 section 2(c) of this chapter.
150150 2025 IN 1269—LS 6670/DI 129 4
151151 1 (c) Members of the board may not vote by proxy.
152152 2 SECTION 5. IC 5-28-5-2, AS ADDED BY P.L.4-2005, SECTION
153153 3 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
154154 4 PASSAGE]: Sec. 2. (a) Subject to subsection (b) and section 2.1 of
155155 5 this chapter, the corporation is granted all powers necessary or
156156 6 appropriate to carry out the corporation's public and corporate purposes
157157 7 under this chapter.
158158 8 (b) Before the corporation may purchase land that in total
159159 9 exceeds one hundred (100) acres in a county, whether acquired in
160160 10 one (1) or a series of transactions, the corporation must first give
161161 11 notice to the county or municipality, or both, in which the land is
162162 12 located not later than thirty (30) days before the closing date for
163163 13 the purchase or purchases.
164164 14 SECTION 6. IC 5-28-5-2.1 IS ADDED TO THE INDIANA CODE
165165 15 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
166166 16 UPON PASSAGE]: Sec. 2.1. (a) This section applies to any land
167167 17 purchase, including a purchase of land described in section 2(b) of
168168 18 this chapter, made by the corporation.
169169 19 (b) The corporation shall ensure that no land is acquired for a
170170 20 value exceeding its fair market value. Before the corporation
171171 21 acquires land, the corporation shall first have the land appraised
172172 22 by two (2) appraisers. The appraisers may not have a financial
173173 23 interest in the development or the corporation and must be:
174174 24 (1) professionally engaged in making appraisals; and
175175 25 (2) licensed under IC 25-34.1.
176176 26 (c) Subject to IC 5-14-3, the corporation shall make the
177177 27 appraisal reports available to the public upon request within thirty
178178 28 (30) days of the transaction.
179179 29 SECTION 7. IC 5-28-6-11 IS ADDED TO THE INDIANA CODE
180180 30 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
181181 31 UPON PASSAGE]: Sec. 11. (a) Before November 1, 2025, the
182182 32 corporation shall establish a tracking mechanism that is easily
183183 33 accessible from the corporation's website to monitor the impact of
184184 34 economic development projects on wages paid to employees at
185185 35 those projects and the financial impacts to local governments from
186186 36 those projects.
187187 37 (b) The tracking mechanism established under this section must
188188 38 include the following components and each component must be
189189 39 updated quarterly and posted quarterly on the corporation's
190190 40 transparency portal established under section 2(b)(8) of this
191191 41 chapter:
192192 42 (1) A record of the total public money invested in each
193193 2025 IN 1269—LS 6670/DI 129 5
194194 1 economic development project supported by the corporation.
195195 2 (2) The tracking of wage data for:
196196 3 (A) Indiana residents employed as a result of an economic
197197 4 development project; and
198198 5 (B) Indiana residents employed in other industries that are
199199 6 impacted by the economic development project.
200200 7 (3) Data showing gains in wage growth for employees
201201 8 employed as a result of an economic development project
202202 9 relative to the money invested in the economic development
203203 10 project.
204204 11 (4) Data showing:
205205 12 (A) the impact of each economic development project on
206206 13 the overall financial health of local governments;
207207 14 (B) the impact of each economic development project on
208208 15 the tax burden of individual property taxpayers, including
209209 16 reductions (if any) to the property tax burden for
210210 17 individual property taxpayers; and
211211 18 (C) the impact of each economic development project on
212212 19 local government revenue streams, including efforts by the
213213 20 corporation to offset or reduce the need for higher local
214214 21 property taxes as a result of state investments.
215215 22 (c) Before January 15 of each year, the corporation shall submit
216216 23 an annual report to the general assembly in an electronic format
217217 24 under IC 5-14-6 that contains information corresponding to each
218218 25 component required by subsection (b) for the preceding calendar
219219 26 year. The corporation must also include the following information
220220 27 in the annual report:
221221 28 (1) Total investment amounts made for economic development
222222 29 projects by the state, the corporation, and private entities for
223223 30 the preceding calendar year.
224224 31 (2) The average and median wage changes in communities
225225 32 impacted by investments in economic development projects
226226 33 for the preceding calendar year.
227227 34 (3) An analysis of local tax burden impacts and measures that
228228 35 can be implemented to provide support for local government
229229 36 entities.
230230 37 (4) A summary of findings and recommendations to maximize
231231 38 wage growth and tax relief relative to public investment in
232232 39 economic development projects.
233233 40 SECTION 8. [EFFECTIVE JULY 1, 2025] (a) As used in this
234234 41 SECTION, "corporation" means the Indiana economic
235235 42 development corporation established by IC 5-28-3-1.
236236 2025 IN 1269—LS 6670/DI 129 6
237237 1 (b) As used in this SECTION, "qualified community" means a
238238 2 county with a population of less than fifty thousand (50,000).
239239 3 (c) The corporation shall dedicate at least five percent (5%) of
240240 4 the funds appropriated to the corporation for economic
241241 5 development purposes in the budget bill for the biennium
242242 6 beginning July 1, 2025, and ending June 30, 2027, for economic
243243 7 development projects, including:
244244 8 (1) housing;
245245 9 (2) infrastructure; or
246246 10 (3) other projects or initiatives that enhance quality of life;
247247 11 in qualified communities.
248248 12 (d) This SECTION expires July 1, 2027.
249249 13 SECTION 9. An emergency is declared for this act.
250250 2025 IN 1269—LS 6670/DI 129