§ 6-3.6-10-7 — Regional venture capital fund; deposit of revenue allocated for economic development; uses of money from the fund; interlocal agreement; administration of the fund

Indiana § 6-3.6-10-7

• Jurisdiction: Indiana
• Art. 3.6: LOCAL INCOME TAXES
• Ch. 10: Permitted Expenditures

Text

(a) The general assembly finds that counties
and municipalities in Indiana have a need to foster economic
development, the development of new technology, and industrial and
commercial growth. The general assembly finds that it is necessary and
proper to provide an alternative method for counties and municipalities
to foster the following:
(1) Economic development.
(2) The development of new technology.
(3) Industrial and commercial growth.
(4) Employment opportunities.
(5) The diversification of industry and commerce.
The fostering of economic development and the development of new
technology under this section or section 8 of this chapter for the benefit
of the general public, including industrial and commercial enterprises,
is a public purpose.
(b) The fiscal bodies of two (2) or more counties or municipalities
may, by resolution, do the following:
(1) Determine that part or all of the revenue described in section
2 of this chapter should be combined to foster:
(A) economic development;
(B) the development of new technology; and
(C) industrial and commercial growth.
(2) Establish a regional venture capital fund.
(c) Each unit participating in a regional venture capital fund
established under subsection (b) may deposit the following in the fund:
(1) Revenues described in section 2 of this chapter.
(2) The proceeds of public or private grants.
(d) A regional venture capital fund shall be administered by a
governing board. The expenses of administering the fund shall be paid
from money in the fund. The governing board shall invest the money
in the fund not currently needed to meet the obligations of the fund in
the same manner as other public money may be invested. Interest that
accrues from these investments shall be deposited into the fund. The
fund is subject to audit by the state board of accounts under IC 5-11-1.
The fund must bear the full costs of the audit.
(e) The fiscal body of each participating unit shall approve an
interlocal agreement created under IC 36-1-7 establishing the terms for
the administration of the regional venture capital fund. The terms must
include the following:
(1) The membership of the governing board.
(2) The amount of each unit's contribution to the fund.
(3) The procedures and criteria under which the governing board
may loan or grant money from the fund.
(4) The procedures for the dissolution of the fund and for the
distribution of money remaining in the fund at the time of the
dissolution.
(f) An interlocal agreement made by the participating units under
subsection (e) must provide that:
(1) each of the participating units is represented by at least one (1)
member of the governing board; and
(2) the membership of the governing board is established on a
bipartisan basis so that the number of the members of the
governing board who are members of one (1) political party may
not exceed the number of members of the governing board
required to establish a quorum.
(g) A majority of the governing board constitutes a quorum, and the
concurrence of a majority of the governing board is necessary to
authorize any action.
(h) An interlocal agreement made by the participating units under
subsection (e) must be submitted to the Indiana economic development
corporation for approval before the participating units may contribute
to the fund.
(i) A majority of members of a governing board of a regional
venture capital fund established under this section must have at least
five (5) years of experience in business, finance, or venture capital.
(j) The governing board of the fund may loan or grant money from
the fund to a private or public entity if the governing board finds that
the loan or grant will be used by the borrower or grantee for at least one
(1) of the following economic development purposes:
(1) To promote significant employment opportunities for the
residents of the units participating in the regional venture capital
fund.
(2) To attract a major new business enterprise to a participating
unit.
(3) To develop, retain, or expand a significant business enterprise
in a participating unit.
(k) The expenditures of a borrower or grantee of money from a
regional venture capital fund that are considered to be for an economic
development purpose include expenditures for any of the following:
(1) Research and development of technology.
(2) Job training and education.
(3) Acquisition of property interests.
(4) Infrastructure improvements.
(5) New buildings or structures.
(6) Rehabilitation, renovation, or enlargement of buildings or
structures.
(7) Machinery, equipment, and furnishings.
(8) Funding small business development with respect to:
(A) prototype products or processes;
(B) marketing studies to determine the feasibility of new
products or processes; or
(C) business plans for the development and production of new
products or processes.

Legislative History

As added by P.L.243-2015, SEC.10. Amended by P.L.188-2016, SEC.7; P.L.197-2016, SEC.68; P.L.85-2017, SEC.28.