Bill Text: IN HB1271 | 2011 | Regular Session | Introduced
Bill Title: Criteria for industrial development programs.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-01-12 - First reading: referred to Committee on Commerce, Small Business and Economic Development [HB1271 Detail]
Download: Indiana-2011-HB1271-Introduced.html
Citations Affected: IC 5-28; IC 6-1.1-39.
Synopsis: Criteria for industrial development programs. Provides that,
in deciding whether to award a loan from the industrial development
fund, the Indiana economic development corporation (IEDC) and the
state board of finance may not: (1) require evidence of preliminary
commitments to initiate or complete the program; or (2) base their
decision on such evidence. Requires the secretary of commerce, in
awarding grants from the industrial development grant fund, to use the
same standards used for loans from the industrial development fund.
Provides that grants may be awarded for the construction of utilities or
public infrastructure to improve the chance of securing future
commitments for an industrial development program. Provides that if
a unit adopts an ordinance after June 30, 2011, to create an economic
development district, a qualified industrial development project
proposed for the district is not required to be supported by certain
preliminary commitments. Provides that the IEDC, in determining
preliminarily whether to authorize a district, may not base its
determination on the likelihood that a proposed project will be initiated
or accomplished. Updates references to certain federal statutes.
Effective: July 1, 2011.
January 12, 2011, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
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A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
(1) An application for the loan has been submitted by the qualified entity, in a verified petition, to the state board of finance
and the corporation in the manner and form as the state board of
finance and the corporation direct. The application must set forth
all the following:
(A) The need for the program and the need for funds for
instituting and administering the program.
(B) An engineering estimate of the cost of the proposed
program acceptable to the state board of finance and the
corporation.
(C) The amount of money needed.
(D) Other information that is requested by the state board of
finance and the corporation.
(2) The proposed program has been approved by the state board
of finance and the corporation, which they may do only if they
have determined that the program is based on sound engineering
principles and is in the interest of industrial development. In
deciding whether to approve a program submitted for
approval after June 30, 2011, the state board of finance and
the corporation may not:
(A) require the qualified entity to provide evidence of
preliminary commitments that:
(i) are made by business enterprises, associations, state
or federal governmental units, or similar entities; and
(ii) demonstrate a reasonable likelihood that any project
or construction proposed as part of the program will be
initiated and accomplished; or
(B) base the decision whether to approve the program on
the presence or lack of any evidence described in clause
(A).
(3) The loan does not exceed one hundred percent (100%) of the
cost to the qualified entity of an approved program, with the cost
of the program to be based on an estimate made by a competent
engineering authority and approved by the corporation.
(4) The qualified entity has agreed to furnish assurance,
satisfactory to the state board of finance and the corporation, that
the qualified entity will operate and maintain the program, after
completion, in a satisfactory manner.
(b) The state board of finance and the corporation shall authorize a
loan to a small business investment company or minority enterprise
small business investment company under this chapter only if:
(1) the small business investment company or minority enterprise
small business investment company has loaned to or invested in
a business located in an enterprise zone for a purpose directly
related to the enterprise zone an amount that is at least twice the
amount of the requested loan; and
(2) the small business investment company or minority enterprise
small business investment company has submitted an application,
before the beginning of the phase out period of the enterprise
zone, to the state board of finance and the corporation that shows
the amount of the loan requested and other information that is
requested by the state board of finance and the corporation.
(b) The money granted must be used by the recipient for any of the following:
(1) To institute and administer an approved industrial development program.
(2) For grants awarded after June 30, 2011, to undertake any of the following activities to improve the likelihood of securing future commitments by business enterprises, associations, state or federal governmental units, or similar entities to collaborate with the recipient in an industrial development program:
(A) The construction, extension, or completion of:
(i) sanitary sewerlines, storm sewers, and other related
drainage facilities;
(ii) waterlines;
(iii) roads and streets;
(iv) sidewalks;
(v) rail spurs and sidings; and
(vi) information and high technology infrastructure (as defined in IC 5-28-9-4).
(B) The preparation of surveys, plans, and specifications for the construction of publicly owned and operated facilities, utilities, and services.
(c) In approving an industrial development program under subsection (b)(1) for purposes of this chapter, the secretary of commerce shall use the same standards set forth in IC 5-28-9-12(a)(2) for the approval of programs for loans from the industrial development fund under IC 5-28-9.
JULY 1, 2011]: Sec. 2. (a) If the fiscal body of a unit finds that:
(1) in order to promote opportunities for the gainful employment
of its citizens, the attraction of a new business enterprise to the
unit, the retention or expansion of a business enterprise existing
within the boundaries of the unit, or the preservation or
enhancement of the tax base of the unit, an area under the fiscal
body's jurisdiction should be declared an economic development
district;
(2) the public health and welfare of the unit will be benefited by
designating the area as an economic development district; and
(3) there has been proposed a qualified industrial development
project to be located in the economic development district, with
the proposal supported by:
(A) financial and economic data; and
(B) except as provided in subsection (d), preliminary
commitments by business enterprises, associations, state or
federal governmental units, or similar entities that evidence a
reasonable likelihood that the proposed qualified industrial
development project will be initiated and accomplished;
the fiscal body may on or before the adoption deadline determined
under subsection (c), adopt an ordinance declaring the area to be an
economic development district and declaring that the public health and
welfare of the unit will be benefited by the designation.
(b) For the purpose of adopting an ordinance under subsection (a),
it is sufficient to describe the boundaries of the area by its location in
relation to public ways or streams or otherwise as determined by the
fiscal body.
(c) The adoption deadline referred to in subsection (a) is determined
in the following manner:
(1) The initial adoption deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial adoption deadline and
subsequent adoption deadlines are automatically extended in
increments of five (5) years, so that adoption deadlines
subsequent to the initial adoption deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an adoption deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of adoption deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
adoption deadline.
(d) If a unit adopts an ordinance under subsection (a) after June 30, 2011, the unit is not required to make the finding described in subsection (a)(3)(B).
(1) a copy of the ordinance;
(2) a description of the proposed industrial development program and qualified industrial development project; and
(3) other additional data and information that will enable the corporation to determine preliminarily whether the unit may qualify for a loan from the industrial development fund established under IC 5-28-9.
(b) The Indiana economic development corporation shall review the data and related information submitted under subsection (a) to determine preliminarily whether:
(1) the proposed project will qualify as a qualified industrial development project;
(2) for a project described in an ordinance adopted by a unit under section 2 of this chapter before July 1, 2011, there is a reasonable likelihood that the proposed qualified industrial development project will be initiated and accomplished; and
(3) there is a reasonable likelihood that an application by the unit under IC 5-28-9-12 for a loan from the industrial development fund to institute and administer the proposed industrial development program will be approved by the corporation and the state board of finance.
(c) If the Indiana economic development corporation preliminarily determines under subsection (b) that the proposed project does not or will not qualify as a qualified industrial development project or that there is not a reasonable likelihood that a loan from the industrial development fund will be approved under IC 5-28-9-12, the corporation shall certify this determination in writing to the fiscal body adopting the ordinance. For a proposed project described in an ordinance adopted by a unit under section 2 of this chapter after June 30, 2011, the corporation may not base the preliminary determination referred to in this subsection on any determination made under subsection (b)(2). Upon this certification, the ordinance proposing to establish the economic development district is void.
(d) If the Indiana economic development corporation preliminarily
determines under subsection (b) that the proposed project qualifies or
will qualify as a qualified industrial development project and that there
is a reasonable likelihood that a loan from the industrial development
fund will be approved under IC 5-28-9-12, the corporation shall certify
this determination to the fiscal body adopting the ordinance proposing
to establish the economic development district. For a proposed
project described in an ordinance adopted by a unit under section
2 of this chapter after June 30, 2011, the corporation may not base
the preliminary determination referred to in this subsection on any
determination made under subsection (b)(2). Upon receipt of this
certification, the fiscal body shall proceed to take final action with
respect to the ordinance in accordance with section 3 of this chapter.
(e) A favorable preliminary certification under subsection (d) does
not, however, represent or constitute a final determination by the
Indiana economic development corporation and state board of finance
as to whether the unit will obtain a loan from the industrial
development fund in accordance with IC 5-28-9.