Bill Text: IN HB1378 | 2013 | Regular Session | Introduced
Bill Title: Virtual incubator program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-01-22 - First reading: referred to Committee on Commerce, Small Business and Economic Development [HB1378 Detail]
Download: Indiana-2013-HB1378-Introduced.html
Citations Affected: IC 5-28-36.
Synopsis: Virtual incubator program. Requires the Indiana economic
development corporation (IEDC) to establish and administer an
Internet-based virtual incubator pilot program. Provides that under the
virtual incubator pilot program, the IEDC shall assist entrepreneurs that
are seeking to establish or that are operating a start-up small business
for which the conventional business incubation and assistance
programs may not be appropriate because of distance, population
dispersal, or the scale of the business venture. Provides that the tenants
under the virtual incubator pilot program are limited to businesses
located in northwestern Indiana. Specifies certain criteria that must be
used by the IEDC in evaluating applications and selecting tenants.
Requires the IEDC to adopt policies and guidelines concerning
entrance to and exit from the virtual incubator pilot program. Requires
the IEDC to submit an annual report concerning the virtual incubator
pilot program to the legislative council.
Effective: July 1, 2013.
January 22, 2013, 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
economic development.
Chapter 36. Virtual Incubator Pilot Program
Sec. 1. As used in this chapter, "tenant" means an individual or business selected to participate in the virtual incubator pilot program.
Sec. 2. The corporation shall establish and administer an Internet-based virtual incubator pilot program as provided in this chapter.
Sec. 3. Under the program, the corporation shall assist entrepreneurs that are seeking to establish or that are operating a start-up small business for which the conventional business incubation and assistance programs may not be appropriate because of distance, population dispersal, or the scale of the business venture.
Sec. 4. The corporation shall select tenants for the virtual
incubator pilot program on a competitive basis through an
application process established by the corporation. The
corporation must limit tenants to individuals and businesses
operating a start-up small business that:
(1) is described in section 3 of this chapter; and
(2) is located in northwestern Indiana.
Sec. 5. The corporation shall adopt policies and guidelines
concerning the following:
(1) The application process and procedures to be used for the
selection of tenants.
(2) The criteria to be used in evaluating applications and
selecting tenants. The criteria shall include at least an
assessment of the following:
(A) The potential economic impact of the business, as
measured by potential revenue, job creation, and effect on
the local economy.
(B) The likelihood of support from or collaboration with
research and educational institutions in Indiana.
(C) The financial commitment of the applicant and other
persons.
(D) The applicant's knowledge of and experience in the
industry in which the business will operate.
(E) The likelihood that the business will become profitable
and self-sustaining within three (3) years.
(3) Requirements concerning entrance to and exit from the
virtual incubator pilot program. The corporation's policies
and guidelines must include requirements concerning the
graduation of tenants from the virtual incubator pilot
program:
(A) after a specific period of time;
(B) after a specific state of business development; or
(C) after both a specific period of time and a specific state
of business development.
Sec. 6. The corporation shall review applications submitted by
prospective tenants and select the individuals and businesses
permitted to participate in the virtual incubator pilot program.
Sec. 7. The corporation shall provide small business
development and incubation assistance to tenants, including:
(1) business planning and evaluating the feasibility of business
ideas or plans;
(2) identifying loans and grants and other sources of funding;
(3) assisting in the preparation of applications for loans,
grants, and other sources of funding;
(4) assisting in strategic guidance on markets;
(5) analysis of proof-of-concept activities;
(6) providing support in reaching state, national, and global
markets;
(7) providing access to business mentors and management
consulting; and
(8) providing other assistance that is appropriate for an
Internet-based incubator program.
Sec. 8. (a) The corporation shall submit an annual report
concerning the virtual incubator pilot program to the legislative
council before September 1 of each year. The report must be in an
electronic format under IC 5-14-6 and must contain information
concerning the following for the preceding state fiscal year:
(1) The number of tenant applications received.
(2) The number of tenant applications approved and the
reasons for the acceptance.
(3) The number of tenant applications rejected and the
reasons for the rejection.
(4) A description of each business accepted as a tenant.
(5) The number of jobs created or retained by each tenant.
(6) The location of each tenant.
(7) Any conclusions and recommendations made by the
corporation concerning the virtual incubator pilot program.
(b) The corporation shall also publish the report on the
corporation's Internet web site.
Sec. 9. This chapter expires July 1, 2018.
