LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6850 NOTE PREPARED: Dec 30, 2024
BILL NUMBER: SB 251 BILL AMENDED:
SUBJECT: Indiana Economic Development Corporation.
FIRST AUTHOR: Sen. Deery BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: Meetings for Strategic Economic Development Plan: The bill provides that the
Governor may convene meetings with individuals from certain state agencies to work toward communicating
a single, strategic economic development plan for the state.
Examination Requirements and Costs: The bill provides that the State Board of Accounts shall act as the
economic development ombudsman for the Indiana Economic Development Corporation (IEDC) and a
nonprofit subsidiary of the IEDC. The bill requires the State Board of Accounts to designate an individual
to serve as the ombudsman. The bill sets forth the ombudsman's duties, including the recommendation of
policies to the General Assembly concerning economic development and transparency matters.
The bill provides that the ombudsman (subject to the state examiner's approval) may employ or contract with
assistants necessary to assist the ombudsman in carrying out the ombudsman's duties. The bill also
establishes circumstances under which the ombudsman is required to adopt a budget before the ombudsman's
costs, including the costs of any assistants, in carrying out the ombudsman's duties are paid from
appropriations made to the IEDC and when the ombudsman may bill the IEDC for those costs without using
the budget procedure added by the bill.
Appointment: The bill provides for appointment to the board of the IEDC of two nonvoting, advisory
members who are members of the General Assembly.
Land Purchase Notice: 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.
Dashboard Establishment: The bill requires the IEDC to establish a dashboard that includes longitudinal
representations of certain economic development data derived from elements required to be included in the
economic incentives and compliance report.
Analysis Requirements for IEDC: The bill requires the IEDC to analyze the potential impact of a proposed
SB 251 1 economic development investment on the costs to provide the following utility services to ratepayers: (1)
Water. (2) Wastewater. (3) Electricity. (4) Natural gas.
The bill specifies that in performing the analysis, the IEDC must consider each of the following: (1) The
existing utility infrastructure available to serve the project. (2) Any new utility infrastructure needed to serve
the project. (3) Water resource availability for the project.
The bill provides that if a proposed economic development investment is projected to negatively impact
ratepayers, the IEDC is required to develop and implement a mitigation plan. The bill also allows the IEDC
to consult with certain state agencies, utilities providing utility services to the project area, local units of
government, and consumer and ratepayer advocates in performing the analysis and mitigation requirements
added by the bill.
Effective Date: Upon passage; July 1, 2025.
Explanation of State Expenditures: Summary - The bill requires the IEDC to pay for the examination costs
of the ombudsman, create a dashboard, and analyze the impact of projects on utility costs. The bill’s
requirements represent an additional workload and expenditure on the IEDC outside of the agency’s routine
administrative functions, and existing staffing and resource levels, if currently being used to capacity, may
be insufficient for full implementation. The additional funds and resources required could be supplied
through existing staff and resources currently being used in another program or with new appropriations.
Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on
legislative and administrative actions.
Meetings for Strategic Economic Development Plan: The provision allowing the Governor to convene
meetings with agencies on the state's strategic economic development plan can be implemented within
existing resource levels.
Examination Requirements and Costs: The bill provides that the State Board of Accounts shall act as the
ombudsman for the IEDC and its nonprofit subsidiary. The bill also provides that the ombudsman has the
authority to employ or contract with assistants to carry out the duties. The bill requires the ombudsman’s
budget to be approved by the State Budget Agency if it is more than $99,000. These requirements would
increase the workload and expenditures of the State Board of Accounts. The IEDC would pay for the direct
and indirect examination costs, which could be lower than the costs of commercial professional accounting
services. [In FY 2023 and FY 2024, the IEDC had $0.16 M and $0.23 M, respectively, of General Fund
expenditures for professional accounting services.]
Appointment: The bill adds two nonvoting 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 the same per diem, mileage, and travel allowances paid to legislative
members of interim study committees. These expenses would be paid from the appropriation made to the
Legislative Council or the Legislative Services Agency.
Land Purchase Notice: The requirement of written notice can be implemented within existing resource
levels.
Dashboard Establishment: The bill requires the IEDC to establish a dashboard to present certain economic
development data. This provision would increase the workload and expenditures of the IEDC.
SB 251 2 Analysis Requirements for IEDC: The bill requires the IEDC to analyze the potential impact of a proposed
economic development plan on ratepayers' utility services costs. The bill specifies the aspects that IEDC must
consider in performing the analysis. The bill also requires the IEDC to develop and implement a mitigation
plan if a proposed economic development investment could negatively impact ratepayers. It allows the IEDC
to consult with certain state agencies, utilities, local government units, and consumer and ratepayer advocates
in performing the required analysis and mitigation.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Governor; IEDC; State Board of Accounts; General Assembly; any agency
providing support for the strategic planning.
Local Agencies Affected:
Information Sources: Indiana Transparency Portal, Expenditures Data,
https://hub.mph.in.gov/dataset/expenditures-data.
Fiscal Analyst: Qian Li, 317-232-9671.
SB 251 3