SB 350 – Central Indiana Regional Development Authority
Authored by Sen. Travis Holdman (R-Markle)

Authorize counties and municipalities within the Indianapolis metropolitan area to establish a central Indiana regional development authority pilot that will sunset on July 1, 2025. Requires counties and municipalities that wish to establish the development authority to adopt substantially similar resolutions to adopt a preliminary strategic economic development plan (preliminary development plan). Provides that the development authority shall be governed by a strategy committee composed of members selected according to the terms of the preliminary development plan adopted to establish the development authority. Specifies the duties of the development authority. Requires the development authority to prepare a comprehensive strategic economic development plan. Amends the definition of “economic development projects” under the local income tax statute. Codifies the establishment and governing provisions of the Indianapolis metropolitan planning organization. Makes conforming changes.

Chamber position: Support

The latest: On January 28, the Senate Tax and Fiscal Policy Committee unanimously passed an amended version and it’s now ready for final passage by the full Senate.

Indiana Chamber action/commentary: The Chamber has been in lengthy discussions with Sen. Holdman since last summer about regional economic development legislation. Namely, requiring that local communities that come together to form a development authority must do so with an eye on attracting the next generation of businesses, workers and residents to the region. As introduced, SB 350 would have authorized local governments to institute a local sales, income and/or food and beverage tax. Half of the tax revenue would be deposited in the development authority’s investment fund and the other half returned to the taxing jurisdiction for general purposes. Money in the investment fund could be spent at the discretion of the investment board on projects of its choosing.

Upon instruction from Sen. Holdman, the Chamber – in coordination with other stakeholders – provided an amendment to SB 350 that codified the Indianapolis Metropolitan Planning Organization and established a new framework for future development authorities. The framework accomplishes two primary objectives: (1) development authorities are more likely to receive federal grants and private investments, and (2) plans drafted by development authorities must contemplate holistic, quality-of-place projects and programs that will attract businesses and people.

The Chamber testified in Tuesday’s hearing in favor of the amended SB 350 and will continue working to ensure its passage.


Victory for Certified Technology Parks

SB 264 – Certified Technology Parks
Authored by Sen. Travis Holdman (R-Markle)

Amends provisions that allow a certified technology park (CTP) to capture an additional amount of incremental income taxes once it has reached its limit on deposits to do the following: (1) Increase the annual additional deposit amount from $100,000 to $500,000 and cap the total additional amount that may be captured at not more than $2,000,000. (2) Require a certified technology park to meet certain reporting and performance requirements in order to be eligible to capture the additional amount of incremental income taxes.

Chamber position: Support

The latest: On January 28, the Senate Tax and Fiscal Policy committee unanimously passed (12-0) an amended version . The bill is now ready for action by the full Senate.

Indiana Chamber action/commentary: The Chamber testified in favor of SB 264, along with others including the Coalition of Certified Technology Parks, Chamber board member Karl LaPan (Northeast Indiana Innovation Center) and Ted Baker (Innovation Connector, a tech incubator in Muncie).

As explained during testimony, we cited two main reasons for the Chamber’s support. One, the incentive that CTPs receive is “new money” that would otherwise not be available but for local redevelopment commissions turning greenspace or under-developed/utilized structures into a place that incubates businesses. Also, CTPs are a net positive for the communities in which they are located because they attract businesses and workers that contribute to the local and state tax bases in a variety of ways.

The Chamber is currently formulating a strategy to gain the support of key House members.


Bill Adds Transparency to State Regulations

SB 364 – Regulatory Impact Matters
Authored by Sen. Victoria Spartz (R-Noblesville)

Requires the Legislative Services Agency to determine whether a bill may impose a regulatory requirement on businesses and individuals, and, if so, include a statement in the fiscal analysis that the bill may impose a regulatory requirement on businesses and individuals. Requires the small business ombudsman, in coordination with the Office of Management and Budget and the Department of Workforce Development, to submit: (1) an executive summary summarizing each state agency that may issue a license, and each of the specific license types that may be issued by each state agency; (2) an executive summary concerning the comparative advantages of regions across the state and strategies to promote small businesses and entrepreneurship; and (3) an executive summary  with recommendations on regulatory oversight. Full details.

Chamber position: Support

The latest: The Senate Commerce and Technology Committee passed an amended version 10-0 on Thursday.

Indiana Chamber action/commentary: The Chamber supports this legislation in large part because it adds transparency to what state agencies do on the regulatory front. For example, policy makers will benefit significantly from having a comprehensive list of all agencies that issue an occupational license and types of licenses issued.

The Chamber worked very closely with Sen. Spartz to amend SB 364 in several meaningful ways. It now requires all state agencies, including the State Board of Education and Commission for Higher Education, to make an annual report to the Legislative Council (and members of relevant committees) that includes information about new guidance, regulations and executive orders that were promulgated and signed during the previous 12 months. Additionally, the bill now seeks an interim study committee assignment to investigate the topic of relocation and talent incentives that will attract workers and residents to Indiana.

Resource: Adam H. Berry at (317) 264-6892 or email: aberry@indianachamber.com