Indiana 2025 Regular Session

Indiana Senate Bill SB0251 Latest Draft

Bill / Introduced Version Filed 01/10/2025

                             
Introduced Version
SENATE BILL No. 251
_____
DIGEST OF INTRODUCED BILL
Citations Affected:  IC 4-3-28; IC 5-11-1-32; IC 5-28.
Synopsis:  Indiana economic development corporation. 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. Provides that the state board of
accounts shall act as the economic development ombudsman
(ombudsman) for the Indiana economic development corporation
(IEDC) and a nonprofit subsidiary of the IEDC (nonprofit subsidiary).
Requires the state board of accounts to designate an individual to serve
as the ombudsman. Sets forth the ombudsman's duties, including the
recommendation of policies to the general assembly concerning
economic development and transparency matters. 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. 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. Provides for appointment
to the board of the IEDC of two nonvoting, advisory members who are
members of the general assembly. 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. Requires the
IEDC to establish a dashboard that includes longitudinal
representations of certain economic development data derived from
(Continued next page)
Effective:  Upon passage; July 1, 2025.
Deery
January 13, 2025, read first time and referred to Committee on Commerce and Technology.
2025	IN 251—LS 6850/DI 129 Digest Continued
elements required to be included in the economic incentives and
compliance report. Requires the IEDC to analyze the potential impact
of a proposed economic development investment on the costs to
provide the following utility services to ratepayers: (1) Water. (2)
Wastewater. (3) Electricity. (4) Natural gas. 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. 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. 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.
2025	IN 251—LS 6850/DI 1292025	IN 251—LS 6850/DI 129 Introduced
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.
SENATE BILL No. 251
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 4-3-28 IS ADDED TO THE INDIANA CODE AS
2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
3 PASSAGE]:
4 Chapter 28. Strategic Planning
5 Sec. 1. As used in this chapter, "state agency" means an
6 authority, board, branch, commission, committee, department,
7 division, body corporate and politic created by statute, or other
8 instrumentality of the executive, including the administrative,
9 department of state government.
10 Sec. 2. The governor may convene meetings, at the governor's
11 discretion, with:
12 (1) the secretary of commerce of the Indiana economic
13 development corporation;
14 (2) the commissioner of the Indiana department of
15 transportation;
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1 (3) the chair of the Indiana utility regulatory commission;
2 (4) the chair of the ports of Indiana;
3 (5) the public finance director of the Indiana finance
4 authority; and
5 (6) any other individual from a state agency who the governor
6 determines is necessary to participate in a meeting;
7 to work toward communicating a single, strategic economic
8 development plan for the state that includes the identification of
9 state assets that enable organic investment and ensure that the
10 state's physical infrastructure is prepared for the future needs of
11 commerce.
12 SECTION 2. IC 5-11-1-32 IS ADDED TO THE INDIANA CODE
13 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
14 1, 2025]: Sec. 32. (a) The following definitions apply throughout
15 this section:
16 (1) "Corporation" refers to the Indiana economic
17 development corporation established by IC 5-28-3-1.
18 (2) "Nonprofit subsidiary" refers to a nonprofit subsidiary
19 corporation established under IC 5-28-5-13.
20 (3) "Ombudsman" means the individual designated as the
21 economic development ombudsman under subsection (b) for
22 the corporation and a nonprofit subsidiary.
23 (b) The state board of accounts shall act as the economic
24 development ombudsman for the corporation and a nonprofit
25 subsidiary. To carry out the duties set forth in this section, the state
26 board of accounts shall designate an individual to serve as the
27 economic development ombudsman. The individual selected under
28 this subsection serves at the pleasure of the state board of accounts.
29 (c) The ombudsman shall carry out the following duties:
30 (1) Assist the state board of accounts with respect to:
31 (A) an examination of the corporation or a nonprofit
32 subsidiary; or
33 (B) a review of the examination of the corporation or a
34 nonprofit subsidiary conducted by a private examiner as
35 described in section 9 of this chapter.
36 (2) Conduct investigations related to fraud, waste, abuse,
37 mismanagement, and misconduct in the corporation or
38 nonprofit subsidiary.
39 (3) Conduct performance audits of programs of the
40 corporation or nonprofit subsidiary.
41 (4) Consult with outside management and economic
42 development experts to aid the ombudsman in carrying out
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1 the duties under this section.
2 (5) Recommend policies to the general assembly that would do
3 any of the following:
4 (A) Increase public trust of the corporation's management
5 and spending of taxpayer resources.
6 (B) Increase the transparency of the corporation's
7 activities without sacrificing the corporation's economic
8 development mission as set forth in IC 5-28-1-1.
9 (C) Promote economic development in all parts of Indiana,
10 especially rural communities.
11 (D) Increase the opportunities for coordination and
12 collaboration with local communities throughout Indiana.
13 Any policy recommendations under this subdivision must be
14 made to the general assembly in an electronic format under
15 IC 5-14-6.
16 (6) Attend board meetings of the corporation and have access
17 to all board materials.
18 (d) This subsection applies if the ombudsman's budget is not
19 more than ninety-nine thousand dollars ($99,000). The ombudsman
20 shall bill the corporation for the costs incurred in carrying out the
21 duties under this section, and the costs, including the costs of any
22 assistants under subsection (f), shall be paid from appropriations
23 made to the corporation.
24 (e) This subsection applies if the ombudsman's budget is more
25 than ninety-nine thousand dollars ($99,000). The ombudsman must
26 prepare a budget and provide the proposed budget to the state
27 examiner and the corporation. The state examiner and the
28 corporation must provide written comments on the ombudsman's
29 proposed budget not later than fourteen (14) days after the date the
30 proposed budget is received. After the corporation and the state
31 examiner have provided written comments on the ombudsman's
32 proposed budget, the ombudsman shall provide the proposed
33 budget to the budget agency for review and approval. The budget
34 agency may:
35 (1) approve;
36 (2) approve with modifications; or
37 (3) deny;
38 the ombudsman's proposed budget. If the budget agency denies the
39 ombudsman's proposed budget, the ombudsman may prepare
40 another proposed budget and resubmit that budget in accordance
41 with the procedures set forth in this subsection. The costs incurred
42 by the ombudsman, including the costs of any assistants under
2025	IN 251—LS 6850/DI 129 4
1 subsection (f), in carrying out the duties under this section shall be
2 paid from appropriations made to the corporation in accordance
3 with the budget approved under this subsection.
4 (f) Subject to the approval of the state examiner, the
5 ombudsman may employ or contract with assistants that are
6 necessary to assist the ombudsman in carrying out the duties under
7 this section and that meet the requirements applicable to the:
8 (1) appointment of a field examiner under section 8 of this
9 chapter; or
10 (2) engagement of a private examiner under section 24 of this
11 chapter.
12 (g) The corporation and a nonprofit subsidiary shall cooperate
13 with the ombudsman to carry out the purpose of this section.
14 (h) In carrying out any of the duties under this section, the
15 ombudsman has the same rights, powers, duties, and obligations as
16 the state examiner, deputy examiner, field examiner, or private
17 examiner when engaged in making any examination or when
18 engaged in any official duty delegated to that examiner by the state
19 examiner.
20 (i) This section does not confer authority on the state board of
21 accounts or the ombudsman to publicly release information where
22 public release of that information is prohibited, restricted, or
23 otherwise limited by any one (1) of the following:
24 (1) A contractual provision governing:
25 (A) access to; or
26 (B) public disclosure or release of;
27 information.
28 (2) IC 5-14-1.5 (open door law).
29 (3) IC 5-14-3 (access to public records).
30 (4) IC 24-2-3 (Uniform Trade Secrets Act).
31 (5) Another law that prohibits, restricts, or limits public
32 access to the information.
33 SECTION 3. IC 5-28-4-2, AS AMENDED BY P.L.237-2017,
34 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2025]: Sec. 2. (a) The board is composed of the following
36 members: none of whom may be members of the general assembly:
37 (1) The governor.
38 (2) Eleven (11) individuals appointed by the governor.
39 (3) The members (if any) appointed by the governor under
40 subsection (c).
41 (4) Two (2) nonvoting, advisory members who are members
42 of the general assembly appointed under subsection (d).
2025	IN 251—LS 6850/DI 129 5
1 The individuals appointed under subdivision (2) and the individuals
2 appointed under subsection (c) must be employed in or retired from the
3 private or nonprofit sector or academia and may not be members of
4 the general assembly.
5 (b) When making appointments under subsection (a)(2), the
6 governor shall appoint the following:
7 (1) At least five (5) members belonging to the same political party
8 as the governor.
9 (2) At least three (3) members who belong to a major political
10 party (as defined in IC 3-5-2-30) other than the party of which the
11 governor is a member.
12 (c) In addition to the members appointed under subsection (a)(2),
13 the governor may appoint not more than three (3) additional members
14 to the board. If the governor appoints more than one (1) additional
15 member to the board under this subsection, at least one (1) of the
16 additional members must belong to a major political party (as defined
17 in IC 3-5-2-30) other than the party of which the governor is a member.
18 (d) The members described in subsection (a)(4) are appointed as
19 follows:
20 (1) The speaker of the house of representatives shall appoint
21 one (1) individual who is a member of the house of
22 representatives.
23 (2) The president pro tempore of the senate shall appoint one
24 (1) individual who is a member of the senate.
25 (e) The following apply to the members appointed under
26 subsection (d):
27 (1) A member appointed under subsection (d):
28 (A) serves at the pleasure of the member's appointing
29 authority; and
30 (B) may be reappointed to successive terms.
31 (2) A vacancy in an appointment under subsection (d)(1) shall
32 be filled by the speaker of the house of representatives.
33 (3) A vacancy in an appointment under subsection (d)(2) shall
34 be filled by the president pro tempore of the senate.
35 (4) An individual appointed to fill a vacancy in an
36 appointment under subsection (d) serves for the unexpired
37 term of the individual's predecessor.
38 SECTION 4. IC 5-28-4-3, AS AMENDED BY P.L.237-2017,
39 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (d), the
41 term of office of an appointed member of the board is four (4) years.
42 (b) Each member appointed under section 2(a)(2) or 2(c) of this
2025	IN 251—LS 6850/DI 129 6
1 chapter holds office for the term of appointment and continues to serve
2 after expiration of the appointment until a successor is appointed and
3 qualified. A member is eligible for reappointment.
4 (c) Members of the board appointed under section 2(a)(2) or 2(c) of
5 this chapter serve at the pleasure of the governor.
6 (d) This subsection applies to a member of the board appointed
7 under section 2(d) of this chapter. The term of a member is two (2)
8 years and expires June 30 of the odd-numbered year.
9 SECTION 5. IC 5-28-4-5, AS ADDED BY P.L.4-2005, SECTION
10 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
11 2025]: Sec. 5. (a) The members of the board who are not members of
12 the general assembly:
13 (1) are entitled to a salary per diem for attending meetings equal
14 to the per diem provided by law for members of the general
15 assembly; The members of the board and
16 (2) are also entitled to receive reimbursement for traveling
17 expenses as provided under IC 4-13-1-4 and other expenses
18 actually incurred in connection with the members' duties as
19 approved by the budget agency.
20 (b) Each member of the board who is a member of the general
21 assembly is entitled to receive the same per diem, mileage, and
22 travel allowances paid to legislative members of interim study
23 committees established by the legislative council. Per diem,
24 mileage, and travel allowances paid under this subsection shall be
25 paid from appropriations made to the legislative council or the
26 legislative services agency.
27 SECTION 6. IC 5-28-4-6, AS AMENDED BY P.L.237-2017,
28 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2025]: Sec. 6. (a) The following constitutes a quorum for the
30 transaction of business by the board of the corporation:
31 (1) Seven (7) voting members of the board, if:
32 (A) no additional members are appointed under section 2(c) of
33 this chapter; or
34 (B) one (1) additional member is appointed under section 2(c)
35 of this chapter.
36 (2) Eight (8) voting members of the board, if either two (2) or
37 three (3) additional members are appointed under section 2(c) of
38 this chapter.
39 (b) The following number of affirmative votes is necessary for
40 action to be taken by the board:
41 (1) The affirmative vote of at least seven (7) members, if:
42 (A) no additional members are appointed under section 2(c) of
2025	IN 251—LS 6850/DI 129 7
1 this chapter; or
2 (B) one (1) additional member is appointed under section 2(c)
3 of this chapter.
4 (2) The affirmative vote of at least eight (8) members, if either
5 two (2) or three (3) additional members are appointed under
6 section 2(c) of this chapter.
7 (c) Members of the board may not vote by proxy.
8 SECTION 7. IC 5-28-5-2, AS ADDED BY P.L.4-2005, SECTION
9 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
10 2025]: Sec. 2. (a) Subject to subsection (b), the corporation is granted
11 all powers necessary or appropriate to carry out the corporation's public
12 and corporate purposes under this chapter.
13 (b) Before the corporation may purchase land that in total
14 exceeds one hundred (100) acres in a county, whether acquired in
15 one (1) or a series of transactions, the corporation must first give
16 notice to the county or municipality, or both, in which the land is
17 located not later than thirty (30) days before the closing date for
18 the purchase or purchases.
19 SECTION 8. IC 5-28-6-2, AS AMENDED BY P.L.197-2021,
20 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2025]: Sec. 2. (a) The corporation shall develop and promote
22 programs designed to make the best use of Indiana resources to ensure
23 a balanced economy and continuing economic growth for Indiana, and,
24 for those purposes, may do the following:
25 (1) Cooperate with federal, state, and local governments and
26 agencies in the coordination of programs to make the best use of
27 Indiana resources, based on a statewide study to determine
28 specific economic sectors that should be emphasized by the state
29 and by local economic development organizations within
30 geographic regions in Indiana, and encourage collaboration with
31 local economic development organizations within geographic
32 regions in Indiana and with the various state economic
33 development organizations within the states contiguous to
34 Indiana.
35 (2) Receive and expend funds, grants, gifts, and contributions of
36 money, property, labor, interest accrued from loans made by the
37 corporation, and other things of value from public and private
38 sources, including grants from agencies and instrumentalities of
39 the state and the federal government. The corporation:
40 (A) may accept federal grants for providing planning
41 assistance, making grants, or providing other services or
42 functions necessary to political subdivisions, planning
2025	IN 251—LS 6850/DI 129 8
1 commissions, or other public or private organizations;
2 (B) shall administer these grants in accordance with the terms
3 of the grants; and
4 (C) may contract with political subdivisions, planning
5 commissions, or other public or private organizations to carry
6 out the purposes for which the grants were made.
7 (3) Direct that assistance, information, and advice regarding the
8 duties and functions of the corporation be given to the corporation
9 by an officer, agent, or employee of the executive branch of the
10 state. The head of any other state department or agency may
11 assign one (1) or more of the department's or agency's employees
12 to the corporation on a temporary basis or may direct a division
13 or an agency under the department's or agency's supervision and
14 control to make a special study or survey requested by the
15 corporation.
16 (b) The corporation shall perform the following duties:
17 (1) Develop and implement industrial development programs to
18 encourage expansion of existing industrial, commercial, and
19 business facilities in Indiana and to encourage new industrial,
20 commercial, and business locations in Indiana.
21 (2) Assist businesses and industries in acquiring, improving, and
22 developing overseas markets and encourage international plant
23 locations in Indiana. The corporation, with the approval of the
24 governor, may establish foreign offices to assist in this function.
25 (3) Promote the growth of minority business enterprises by doing
26 the following:
27 (A) Mobilizing and coordinating the activities, resources, and
28 efforts of governmental and private agencies, businesses, trade
29 associations, institutions, and individuals.
30 (B) Assisting minority businesses in obtaining governmental
31 or commercial financing for expansion or establishment of
32 new businesses or individual development projects.
33 (C) Aiding minority businesses in procuring contracts from
34 governmental or private sources, or both.
35 (D) Providing technical, managerial, and counseling assistance
36 to minority business enterprises.
37 (4) Assist the office of the lieutenant governor in:
38 (A) community economic development planning;
39 (B) implementation of programs designed to further
40 community economic development; and
41 (C) the development and promotion of Indiana's tourist
42 resources.
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1 (5) Assist the secretary of agriculture and rural development in
2 promoting and marketing of Indiana's agricultural products and
3 provide assistance to the director of the Indiana state department
4 of agriculture.
5 (6) With the approval of the governor, implement federal
6 programs delegated to the state to carry out the purposes of this
7 article.
8 (7) Promote the growth of small businesses by doing the
9 following:
10 (A) Assisting small businesses in obtaining and preparing the
11 permits required to conduct business in Indiana.
12 (B) Serving as a liaison between small businesses and state
13 agencies.
14 (C) Providing information concerning business assistance
15 programs available through government agencies and private
16 sources.
17 (8) Establish a transparency portal on its current Internet site on
18 the world wide web. The page must provide the following:
19 (A) By program, cumulative information on the total amount
20 of incentives awarded, the total number of companies that
21 received the incentives and were assisted in a year, and the
22 names and addresses of those companies.
23 (B) A mechanism on the page whereby the public may request
24 further information online about specific programs or
25 incentives awarded.
26 (C) A mechanism for the public to receive an electronic
27 response.
28 (D) Access to the following:
29 (i) Any information or report that is required by statute to be
30 included in the economic incentives and compliance report
31 submitted under IC 5-28-28.
32 (ii) Final offer of public financial resources to which the
33 corporation is a party.
34 (iii) Reports that the corporation submitted to the general
35 assembly.
36 (9) Establish a dashboard that is easily accessible from either
37 the corporation's website or the transparency portal (or both)
38 to convey economic development data in an easily
39 understandable manner that deploys charts and graphs. The
40 dashboard must include at least the following information:
41 (A) Longitudinal representations of economic development
42 data derived primarily from the elements that are required
2025	IN 251—LS 6850/DI 129 10
1 under IC 5-28-28-6 to be included in the economic
2 incentives and compliance report.
3 (B) Depictions of:
4 (i) the amount of tax money spent on economic
5 development;
6 (ii) the number of actual jobs created, and the number of
7 jobs expected to be created;
8 (iii) a ratio showing tax money spent per job created;
9 (iv) the distribution by county or region where tax
10 money was spent and jobs were created; and
11 (v) how the corporation spends tax money and generates
12 revenue.
13 (c) The corporation may do the following:
14 (1) Disseminate information concerning the industrial,
15 commercial, governmental, educational, cultural, recreational,
16 agricultural, and other advantages of Indiana.
17 (2) Plan, direct, and conduct research activities.
18 (3) Assist in community economic development planning and the
19 implementation of programs designed to further community
20 economic development.
21 (d) The dashboard required to be established under subsection
22 (b)(9) may also include the following information:
23 (1) A ratio projecting the tax money spent relative to tax
24 revenue generated from the corporation's activities.
25 (2) Average wages of new jobs attracted to Indiana or
26 expected to be attracted to Indiana.
27 SECTION 9. IC 5-28-6-2.5 IS ADDED TO THE INDIANA CODE
28 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
29 UPON PASSAGE]: Sec. 2.5. (a) The corporation shall analyze the
30 potential impact of a proposed economic development investment
31 on the costs to provide the following utility services to ratepayers:
32 (1) Water.
33 (2) Wastewater.
34 (3) Electricity.
35 (4) Natural gas.
36 (b) In performing the analysis under subsection (a), the
37 corporation must consider each of the following:
38 (1) The existing utility infrastructure available to serve the
39 project.
40 (2) Any new utility infrastructure needed to serve the project.
41 (3) Water resource availability for the project.
42 (c) For any proposed economic development investment that is
2025	IN 251—LS 6850/DI 129 11
1 projected to negatively impact ratepayers for a utility service listed
2 in subsection (a), the corporation shall develop and implement a
3 mitigation plan to offset the costs of providing any or all of the
4 utility services listed in subsection (a) that are associated with the
5 project.
6 (d) In performing the analysis under subsection (a) and
7 preparing a mitigation plan under subsection (c) (if mitigation is
8 required), the corporation may consult with the following:
9 (1) The Indiana utility regulatory commission.
10 (2) The department of natural resources.
11 (3) Utilities that provide any of the utility services listed in
12 subsection (a) to the ratepayers located in the area of the
13 project.
14 (4) Counties, cities, towns, and other political subdivisions
15 located in the area of the project.
16 (5) Consumer and ratepayer advocates.
17 SECTION 10. An emergency is declared for this act.
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