§ 6-3.6-10-8 — Local venture capital fund; deposit of revenue allocated for economic development; uses of money from the fund; administration of the fund

Indiana § 6-3.6-10-8

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

Text

(a) The fiscal body of a county or municipality
may, by resolution, establish a local venture capital fund.
(b) A unit establishing a local venture capital fund under subsection
(a) may deposit the following in the fund:
(1) Revenues described in section 2 of this chapter.
(2) The proceeds of public or private grants.
(c) A local 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.
(d) The fiscal body of a unit establishing a local venture capital fund
under subsection (a) shall establish the terms for the administration of
the local venture capital fund. The terms must include the following:
(1) The membership of the governing board.
(2) The amount of the 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.
(e) A unit establishing a local venture capital fund under subsection
(a) must be represented by at least one (1) member of the governing
board.
(f) The membership of the governing board must be 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) The terms established under subsection (d) for the
administration of the local venture capital fund must be submitted to
the Indiana economic development corporation for approval before a
unit may contribute to the fund.
(i) A majority of members of a governing board of a local 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 unit establishing the local venture capital fund.
(2) To attract a major new business enterprise to the unit.
(3) To develop, retain, or expand a significant business enterprise
in the unit.
(k) The expenditures of a borrower or grantee of money from a local
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.8.