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Following mounting concerns over the extent of the Indiana Economic Development Corp.’s authority, a bill intended to ensure greater agency transparency is garnering bipartisan support.
Criticism has ramped up in recent years over whether the agency, which receives hundreds of millions in tax dollars each year, has been transparent and fiscally responsible enough. Lawmakers’ unease with the IEDC reached a boiling point as the state pursued large land purchases and water withdrawals to support its massive LEAP Research and Innovation District in Lebanon. (LEAP stands for Limitless Exploration/Advanced Pace.)
The House Ways and Means Committee unanimously supported Senate Bill 516 on Wednesday, sending the legislation to the full House floor for consideration.
“I think all of us would agree that there have been concerns around transparency and communication with locals around some of these projects,” sponsor Rep. Danny Lopez, R-Indianapolis, said Wednesday. “To the degree that we can continue to support the tools that work and are effective, but also enhance transparency [to] ensure that locals are part of that process, I think that would be an important step.”
Bill author Sen. Brian Buchanan, R-Lebanon, has previously said the bill’s measures would streamline the development process.
Under the legislation, if the IEDC wants to purchase over 100 acres of land within a county, it must notify the county or municipality at least 30 days before the deal closes. Through an amendment adopted Wednesday, the State Budget Committee would also need to receive notice.
For each innovation development district in the state, the IEDC and involved local governments would be required to produce an annual report detailing the district’s tax-increment financing. Innovation development districts allow the state to capture state and local revenue to fund improvements and incentives at the sites. The state currently has two sites under the designation: the SK Hynix site in West Lafayette and Eli Lilly and Co.’s 600 acres in the LEAP District.
The bill would also establish the Office of Entrepreneurship and Innovation, which would manage several new and existing programs to support small business owners and aspiring entrepreneurs. The bill is similar to Rep. Jake Teshka’s House Bill 1172, which passed out of the House and is awaiting a Senate committee hearing.
Through another amendment to the Senate bill passed Wednesday, this new office would oversee certified technology parks instead of the IEDC. The state has more than 20 such parks, including the Purdue Research Park in West Lafayette and WestGate@Crane Technology Park in Odon.
Several chambers of commerce, business advocacy organizations and the state’s secretary of commerce have all vocally supported the legislation.
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