Introduced Version SENATE BILL No. 466 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 4-3-21.5-11; IC 5-28-44. Synopsis: Military base infrastructure grant program. Establishes the Indiana military base infrastructure grant program (program) for physical infrastructure projects located on current or proposed Indiana military bases. Provides that the: (1) Indiana defense task force, in consultation with the Indiana economic development corporation (corporation), shall develop policies and guidelines regarding the application process for the program; and (2) corporation shall administer the program. Provides that the budget committee must make a recommendation to the budget agency on whether to approve a proposed grant. Requires the budget agency to approve a proposed grant before the grant may be awarded. Makes an appropriation. Effective: Upon passage; July 1, 2025. Bassler January 13, 2025, read first time and referred to Committee on Appropriations. 2025 IN 466—LS 7287/DI 116 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. 466 A BILL FOR AN ACT to amend the Indiana Code concerning state and local administration and to make an appropriation. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 4-3-21.5-11, AS ADDED BY P.L.228-2019, 2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 UPON PASSAGE]: Sec. 11. The task force shall do the following: 4 (1) Identify the public infrastructure and other community support 5 necessary: 6 (A) to improve mission efficiencies; and 7 (B) for the development and expansion; 8 of military bases in Indiana. 9 (2) Identify existing and potential impacts of encroachment on 10 military bases in Indiana. 11 (3) Identify potential state and local government actions that can: 12 (A) minimize the impacts of encroachment on; and 13 (B) enhance the long term potential of; 14 military bases in Indiana. 15 (4) Identify opportunities for collaboration among: 16 (A) the state, including the military department of the state; 17 (B) political subdivisions; 2025 IN 466—LS 7287/DI 116 2 1 (C) military contractors; and 2 (D) academic institutions; 3 to maintain and expand the missions of Indiana's military bases. 4 (5) Study how governmental entities outside Indiana have 5 addressed issues regarding encroachment and partnership 6 formation described in this section. 7 (6) With respect to a multicounty federal military base under 8 IC 36-7-30.5: 9 (A) vote to require the establishment of the development 10 authority under IC 36-7-30.5, if necessary; and 11 (B) advise and submit recommendations to a development 12 authority board appointed under IC 36-7-30.5. 13 (7) Strengthen state support for military families and veterans in 14 the areas of education, health care, employment, and family 15 programs. The areas listed in this subdivision do not comprise an 16 exhaustive list of the areas for which the task force may 17 strengthen state support for military families and veterans. 18 (8) Develop, in consultation with the Indiana economic 19 development corporation, policies and guidelines for the 20 Indiana military base infrastructure grant program 21 established under IC 5-28-44. 22 SECTION 2. IC 5-28-44 IS ADDED TO THE INDIANA CODE AS 23 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON 24 PASSAGE]: 25 Chapter 44. Indiana Military Base Infrastructure Grant 26 Program 27 Sec. 1. As used in this chapter, "fund" refers to the Indiana 28 military base infrastructure grant fund established by section 7 of 29 this chapter. 30 Sec. 2. As used in this chapter, "military base" refers to the 31 following: 32 (1) Camp Atterbury. 33 (2) Fort Wayne International Airport. 34 (3) Lake Glendora Test Facility. 35 (4) Grissom Air Reserve Base. 36 (5) Hulman Field. 37 (6) Jefferson Proving Ground. 38 (7) Major General Emmett J. Bean Federal Center. 39 (8) Muscatatuck Urban Training Center. 40 (9) Naval Support Activity (NSA) Crane. 41 Sec. 3. (a) The Indiana military base infrastructure grant 42 program is established to provide military value for current or 2025 IN 466—LS 7287/DI 116 3 1 proposed Indiana military bases consistent with criteria used in 2 accordance with the Defense Base Closure and Realignment Act of 3 1990 (Public Law 101-510), as amended, or subsequent related 4 federal legislation. 5 (b) Except as provided in section 6 of this chapter, the program 6 is administered by the corporation. 7 Sec. 4. (a) After June 30, 2025, the corporation shall accept 8 applications for grants under this chapter using criteria and 9 procedures developed under section 6 of this chapter and work 10 with the United States Department of Defense and military base 11 commanders to provide grants for carefully selected physical 12 infrastructure projects that improve or sustain the military value 13 for current or proposed military bases. 14 (b) Before the corporation submits a grant proposal to the 15 budget committee under section 5 of this chapter and subject to 10 16 U.S.C. 2601, the corporation shall negotiate the terms and 17 conditions of a grant made under this chapter with the United 18 States Department of Defense or the secretary of the particular 19 branch of the armed forces of the United States. The parties shall 20 agree that acceptance of the grant is contingent upon the terms and 21 conditions agreed upon by the parties. 22 (c) The physical infrastructure project for which a proposed 23 grant is to be provided must be: 24 (1) located on a military base; or 25 (2) used to provide: 26 (A) direct service to; or 27 (B) direct support for; 28 a military base, if located off the military base. 29 (d) The corporation may authorize a grant awarded under this 30 chapter to be used to match a federal grant for the physical 31 infrastructure project. 32 Sec. 5. (a) If the corporation desires to provide a grant for a 33 physical infrastructure project for a military base under this 34 chapter, the corporation shall submit a detailed description of the 35 physical infrastructure project and the proposed grant to be 36 provided for a particular military base to the budget committee for 37 review and recommendation to the budget agency. The budget 38 committee shall meet not later than sixty (60) days after receipt of 39 the proposal and shall make a recommendation on the proposal to 40 the budget agency. 41 (b) When considering a proposal by the corporation under this 42 section, the budget committee and the budget agency must make 2025 IN 466—LS 7287/DI 116 4 1 the following findings before approving the proposal: 2 (1) The grant awarded under this chapter will improve or 3 sustain the military value of a current or proposed military 4 base. 5 (2) The assistance will benefit the people of Indiana by 6 protecting commerce or promoting economic development in 7 the vicinity of the military base. 8 (c) The corporation may not be allocated money from the fund 9 until a proposal is approved under this section. Upon approval of 10 the proposal by the budget agency, the corporation may provide a 11 grant for the military base physical infrastructure project. 12 Sec. 6. On or before July 1, 2025, the Indiana defense task force 13 established by IC 4-3-21.5-3, in consultation with the corporation, 14 shall adopt policies and guidelines governing application criteria 15 and procedures to be awarded assistance under this chapter. 16 Sec. 7. (a) The Indiana military base infrastructure grant fund 17 is established within the state treasury as a dedicated fund. Money 18 in the fund must be spent by the corporation exclusively to provide 19 grants under this chapter. 20 (b) The fund consists of: 21 (1) appropriations from the general assembly; and 22 (2) interest deposited into the fund under subsection (d). 23 (c) The corporation shall administer the fund. The following 24 may be paid from money in the fund: 25 (1) Grants for proposals approved by the budget agency 26 under section 5 of this chapter. 27 (2) Expenses of administering the fund. 28 (3) The corporation's administrative expenses incurred to 29 carry out the purposes of this chapter. 30 (d) The treasurer of state shall invest the money in the fund not 31 currently needed to meet the obligations of the fund in the same 32 manner as other public funds may be invested. Interest that 33 accrues from these investments shall be deposited in the fund. 34 (e) Money remaining in the fund at the end of a state fiscal year 35 does not revert to the state general fund. 36 Sec. 8. Beginning November 1, 2026, and each November 1 37 thereafter, the corporation shall submit an annual report to the 38 governor and, in an electronic format under IC 5-14-6, the 39 legislative council that summarizes grants awarded under this 40 chapter for the previous state fiscal year. 41 SECTION 3. [EFFECTIVE JULY 1, 2025] (a) There is 42 appropriated to the Indiana military base infrastructure grant 2025 IN 466—LS 7287/DI 116 5 1 fund established by IC 5-28-44-7, as added by this act: 2 (1) for the state fiscal year beginning July 1, 2025, and ending 3 June 30, 2026, twenty-five million dollars ($25,000,000); and 4 (2) for the state fiscal year beginning July 1, 2026, and ending 5 June 30, 2027, twenty-five million dollars ($25,000,000); 6 from the state general fund for use by the Indiana economic 7 development corporation in carrying out the purpose of the 8 Indiana military base infrastructure grant fund established by 9 IC 5-28-44-7, as added by this act. 10 (b) This SECTION expires July 1, 2027. 11 SECTION 4. An emergency is declared for this act. 2025 IN 466—LS 7287/DI 116