SB 203

                                                           Introduced Version
          SENATE BILL No. 203
                _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-11-1-32; IC 5-28-4; IC 5-28-6.
Synopsis: Indiana economic development corporation. Requires the
state board of accounts to act as the economic development
ombudsman (ombudsman) for the Indiana economic development
corporation (IEDC) and a nonprofit subsidiary of the IEDC (nonprofit
subsidiary) and to designate an individual to serve as the ombudsman.
Sets forth the ombudsman's duties, including the recommendation of
policies to the general assembly concerning economic development and
transparency matters. Allows the ombudsman (subject to the state
examiner's approval) to employ or contract with assistants necessary to
assist the ombudsman in carrying out the ombudsman's duties.
Establishes circumstances under which the ombudsman is required to
adopt a budget before the ombudsman's costs, including the costs of
any assistants, in carrying out the ombudsman's duties are paid from
appropriations made to the IEDC and when the ombudsman may bill
the IEDC for those costs without using the budget procedure added by
this bill. Provides for appointment to the board of the IEDC of two
nonvoting, advisory members who are members of the general
assembly. Requires the IEDC to establish a dashboard that includes
longitudinal representations of certain economic development data
derived from elements required to be included in the economic
incentives and compliance report. Requires the IEDC to analyze the
potential impact of a proposed economic development investment on
the costs to provide the following utility services to ratepayers: (1)
Water. (2) Wastewater. (3) Electricity. (4) Natural gas. Specifies that
in performing the analysis, the IEDC must consider each of the
following: (1) The existing utility infrastructure available to serve the
                      (Continued next page)
Effective: Upon passage; July 1, 2026.
                                Deery
   January 8, 2026, read first time and referred to Committee on Commerce and Technology.
2026  IN 203—LS 6531/DI 129
Digest Continued
project. (2) Any new utility infrastructure needed to serve the project.
(3) Water resource availability for the project. Provides that if a
proposed economic development investment is projected to negatively
impact ratepayers, the IEDC is required to develop and implement a
mitigation plan. Allows the IEDC to consult with certain state agencies,
utilities providing utility services to the project area, local units of
government, and consumer and ratepayer advocates in performing the
analysis and mitigation requirements added by this bill.
2026  IN 203—LS 6531/DI 129
                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
 Constitution) is being amended, the text of the existing provision will appear in this style type,
 additions will appear in this style type, and deletions will appear in this style type.
   Additions: Whenever a new statutory provision is being enacted (or a new constitutional
 provision adopted), the text of the new provision will appear in this style type. Also, the
 word NEW will appear in that style type in the introductory clause of each SECTION that adds
 a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
 between statutes enacted by the 2025 Regular Session of the General Assembly.
                   SENATE BILL No. 203
    A BILL FOR AN ACT to amend the Indiana Code concerning
 economic development.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 5-11-1-32 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2026]: Sec. 32. (a) The following definitions apply throughout
4 this section:
5(1) "Corporation" refers to the Indiana economic
6development corporation established by IC 5-28-3-1.
7(2) "Nonprofit subsidiary" refers to a nonprofit subsidiary
8corporation established under IC 5-28-5-13.
9(3) "Ombudsman" means the individual designated as the
10economic development ombudsman under subsection (b) for
11the corporation and a nonprofit subsidiary.
12    (b) The state board of accounts shall act as the economic
13 development ombudsman for the corporation and a nonprofit
14 subsidiary. To carry out the duties set forth in this section, the state
15 board of accounts shall designate an individual to serve as the
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1 economic development ombudsman. The individual selected under
2 this subsection serves at the pleasure of the state board of accounts.
3    (c) The ombudsman shall carry out the following duties:
4(1) Assist the state board of accounts with respect to:
5(A) an examination of the corporation or a nonprofit
6subsidiary; or
7(B) a review of the examination of the corporation or a
8nonprofit subsidiary conducted by a private examiner as
9described in section 9 of this chapter.
10(2) Conduct investigations related to fraud, waste, abuse,
11mismanagement, and misconduct in the corporation or
12nonprofit subsidiary.
13(3) Conduct performance audits of programs of the
14corporation or nonprofit subsidiary.
15(4) Consult with outside management and economic
16development experts to aid the ombudsman in carrying out
17the duties under this section.
18(5) Recommend policies to the general assembly that would do
19any of the following:
20(A) Increase public trust of the corporation's management
21and spending of taxpayer resources.
22(B) Increase the transparency of the corporation's
23activities without sacrificing the corporation's economic
24development mission as set forth in IC 5-28-1-1.
25(C) Promote economic development in all parts of Indiana,
26especially rural communities.
27(D) Increase the opportunities for coordination and
28collaboration with local communities throughout Indiana.
29Any policy recommendations under this subdivision must be
30made to the general assembly in an electronic format under
31IC 5-14-6.
32(6) Attend board meetings of the corporation and have access
33to all board materials.
34    (d) This subsection applies if the ombudsman's budget is not
35 more than ninety-nine thousand dollars ($99,000). The ombudsman
36 shall bill the corporation for the costs incurred in carrying out the
37 duties under this section. The ombudsman's costs, including the
38 costs of any assistants under subsection (f), shall be paid from
39 appropriations made to the corporation.
40    (e) This subsection applies if the ombudsman's budget is more
41 than ninety-nine thousand dollars ($99,000). The ombudsman must
42 prepare a budget and provide the proposed budget to the state
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1 examiner and the corporation. The state examiner and the
2 corporation must provide written comments on the ombudsman's
3 proposed budget not later than fourteen (14) days after the date the
4 proposed budget is received. After the corporation and the state
5 examiner have provided written comments on the ombudsman's
6 proposed budget, the ombudsman shall provide the proposed
7 budget to the budget agency for review and approval. The budget
8 agency may:
9(1) approve;
10(2) approve with modifications; or
11(3) deny;
12 the ombudsman's proposed budget. If the budget agency denies the
13 ombudsman's proposed budget, the ombudsman may prepare
14 another proposed budget and resubmit that budget in accordance
15 with the procedures set forth in this subsection. The costs incurred
16 by the ombudsman, including the costs of any assistants under
17 subsection (f), in carrying out the duties under this section shall be
18 paid from appropriations made to the corporation in accordance
19 with the budget approved under this subsection.
20    (f) Subject to the approval of the state examiner, the
21 ombudsman may employ or contract with assistants who are
22 necessary to assist the ombudsman in carrying out the duties under
23 this section and who meet the requirements applicable to the:
24(1) appointment of a field examiner under section 8 of this
25chapter; or
26(2) engagement of a private examiner under section 24 of this
27chapter.
28    (g) The corporation and a nonprofit subsidiary shall cooperate
29 with the ombudsman to carry out the purpose of this section.
30    (h) In carrying out any of the duties under this section, the
31 ombudsman has the same rights, powers, duties, and obligations as
32 the state examiner, deputy examiner, field examiner, or private
33 examiner when engaged in making any examination or when
34 engaged in any official duty delegated to that examiner by the state
35 examiner.
36    (i) This section does not confer authority on the state board of
37 accounts or the ombudsman to publicly release information where
38 public release of that information is prohibited, restricted, or
39 otherwise limited by any one (1) of the following:
40(1) A contractual provision governing:
41(A) access to; or
42(B) public disclosure or release of;
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1      information.
2      (2) IC 5-14-1.5 (open door law).
3      (3) IC 5-14-3 (access to public records).
4      (4) IC 24-2-3 (Uniform Trade Secrets Act).
5      (5) Another law that prohibits, restricts, or limits public
6      access to the information.
7    SECTION 2. IC 5-28-4-2, AS AMENDED BY P.L.186-2025,
8 SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2026]: Sec. 2. (a) The board is composed of the following
10 members: none of whom may be members of the general assembly:
11      (1) The governor.
12      (2) Eleven (11) individuals appointed by the governor.
13      (3) The members (if any) appointed by the governor under
14      subsection (c).
15      (4) Two (2) nonvoting, advisory members who are members
16      of the general assembly appointed under subsection (d).
17 The individuals appointed under subdivision (2) and the individuals
18 appointed under subsection (c) must be employed in or retired from the
19 private or nonprofit sector or academia and may not be members of
20 the general assembly.
21    (b) When making appointments under subsection (a)(2), the
22 governor shall appoint the following:
23      (1) At least five (5) members belonging to the same political party
24      as the governor.
25      (2) At least three (3) members who belong to a major political
26      party (as defined in IC 3-5-2.1-62) other than the party of which
27      the governor is a member.
28    (c) In addition to the members appointed under subsection (a)(2),
29 the governor may appoint not more than three (3) additional members
30 to the board. If the governor appoints more than one (1) additional
31 member to the board under this subsection, at least one (1) of the
32 additional members must belong to a major political party (as defined
33 in IC 3-5-2.1-62) other than the party of which the governor is a
34 member.
35    (d) The members described in subsection (a)(4) are appointed as
36 follows:
37      (1) The speaker of the house of representatives shall appoint
38      one (1) individual who is a member of the house of
39      representatives.
40      (2) The president pro tempore of the senate shall appoint one
41      (1) individual who is a member of the senate.
42    (e) The following apply to the members appointed under
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1 subsection (d):
2(1) A member appointed under subsection (d):
3(A) serves at the pleasure of the member's appointing
4authority; and
5(B) may be reappointed to successive terms.
6(2) A vacancy in an appointment under subsection (d)(1) shall
7be filled by the speaker of the house of representatives.
8(3) A vacancy in an appointment under subsection (d)(2) shall
9be filled by the president pro tempore of the senate.
10(4) An individual appointed to fill a vacancy in an
11appointment under subsection (d) serves for the unexpired
12term of the individual's predecessor.
13    SECTION 3. IC 5-28-4-3, AS AMENDED BY P.L.237-2017,
14 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2026]: Sec. 3. (a) Except as provided in subsection (d), the
16 term of office of an appointed member of the board is four (4) years.
17    (b) Each member appointed under section 2(a)(2) or 2(c) of this
18 chapter holds office for the term of appointment and continues to serve
19 after expiration of the appointment until a successor is appointed and
20 qualified. A member is eligible for reappointment.
21    (c) Members of the board appointed under section 2(a)(2) or 2(c) of
22 this chapter serve at the pleasure of the governor.
23    (d) This subsection applies to a member of the board appointed
24 under section 2(d) of this chapter. The initial term of a member is
25 one (1) year and expires June 30, 2027. The term of a member is
26 two (2) years and expires June 30 of the odd-numbered year.
27    SECTION 4. IC 5-28-4-5, AS ADDED BY P.L.4-2005, SECTION
28 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
29 2026]: Sec. 5. (a) The members of the board who are not members of
30 the general assembly:
31(1) are entitled to a salary per diem for attending meetings equal
32to the per diem provided by law for members of the general
33assembly; The members of the board and
34(2) are also entitled to receive reimbursement for traveling
35expenses as provided under IC 4-13-1-4 and other expenses
36actually incurred in connection with the members' duties as
37approved by the budget agency.
38    (b) Each member of the board who is a member of the general
39 assembly is entitled to receive the same per diem, mileage, and
40 travel allowances paid to legislative members of interim study
41 committees established by the legislative council. Per diem,
42 mileage, and travel allowances paid under this subsection shall be
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1 paid from appropriations made to the legislative council or
2 legislative services agency.
3    SECTION 5. IC 5-28-4-6, AS AMENDED BY P.L.237-2017,
4 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2026]: Sec. 6. (a) The following constitutes a quorum for the
6 transaction of business by the board of the corporation:
7(1) Seven (7) voting members of the board, if:
8(A) no additional members are appointed under section 2(c) of
9this chapter; or
10(B) one (1) additional member is appointed under section 2(c)
11of this chapter.
12(2) Eight (8) voting members of the board, if either two (2) or
13three (3) additional members are appointed under section 2(c) of
14this chapter.
15    (b) The following number of affirmative votes is necessary for
16 action to be taken by the board:
17(1) The affirmative vote of at least seven (7) members, if:
18(A) no additional members are appointed under section 2(c) of
19this chapter; or
20(B) one (1) additional member is appointed under section 2(c)
21of this chapter.
22(2) The affirmative vote of at least eight (8) members, if either
23two (2) or three (3) additional members are appointed under
24section 2(c) of this chapter.
25    (c) Members of the board may not vote by proxy.
26    SECTION 6. IC 5-28-6-2, AS AMENDED BY P.L.116-2025,
27 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2026]: Sec. 2. (a) The corporation shall develop and promote
29 programs designed to make the best use of Indiana resources to ensure
30 a balanced economy and continuing economic growth for Indiana, and,
31 for those purposes, may do the following:
32(1) Cooperate with federal, state, and local governments and
33agencies in the coordination of programs to make the best use of
34Indiana resources, based on a statewide study to determine
35specific economic sectors that should be emphasized by the state
36and by local economic development organizations within
37geographic regions in Indiana, and encourage collaboration with
38local economic development organizations within geographic
39regions in Indiana and with the various state economic
40development organizations within the states contiguous to
41Indiana.
42(2) Receive and expend funds, grants, gifts, and contributions of
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1     money, property, labor, interest accrued from loans made by the
2     corporation, and other things of value from public and private
3     sources, including grants from agencies and instrumentalities of
4     the state and the federal government. The corporation:
5(A) may accept federal grants for providing planning
6assistance, making grants, or providing other services or
7functions necessary to political subdivisions, planning
8commissions, or other public or private organizations;
9(B) shall administer these grants in accordance with the terms
10of the grants; and
11(C) may contract with political subdivisions, planning
12commissions, or other public or private organizations to carry
13out the purposes for which the grants were made.
14     (3) Direct that assistance, information, and advice regarding the
15     duties and functions of the corporation be given to the corporation
16     by an officer, agent, or employee of the executive branch of the
17     state. The head of any other state department or agency may
18     assign one (1) or more of the department's or agency's employees
19     to the corporation on a temporary basis or may direct a division
20     or an agency under the department's or agency's supervision and
21     control to make a special study or survey requested by the
22     corporation.
23   (b) The corporation shall perform the following duties:
24     (1) Develop and implement industrial development programs to
25     encourage expansion of existing industrial, commercial, and
26     business facilities in Indiana and to encourage new industrial,
27     commercial, and business locations in Indiana.
28     (2) Assist businesses and industries in acquiring, improving, and
29     developing overseas markets and encourage international plant
30     locations in Indiana. The corporation, with the approval of the
31     governor, may establish foreign offices to assist in this function.
32     However, the corporation may not establish, and the governor
33     may not approve the establishment of, a foreign office in a foreign
34     country described in 15 CFR 791.4.
35     (3) Promote the growth of minority business enterprises by doing
36     the following:
37(A) Mobilizing and coordinating the activities, resources, and
38efforts of governmental and private agencies, businesses, trade
39associations, institutions, and individuals.
40(B) Assisting minority businesses in obtaining governmental
41or commercial financing for expansion or establishment of
42new businesses or individual development projects.
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1(C) Aiding minority businesses in procuring contracts from
2governmental or private sources, or both.
3(D) Providing technical, managerial, and counseling assistance
4to minority business enterprises.
5(4) Assist the office of the lieutenant governor in:
6(A) community economic development planning;
7(B) implementation of programs designed to further
8community economic development; and
9(C) the development and promotion of Indiana's tourist
10resources.
11(5) Assist the secretary of agriculture and rural development in
12promoting and marketing of Indiana's agricultural products and
13provide assistance to the director of the Indiana state department
14of agriculture.
15(6) With the approval of the governor, implement federal
16programs delegated to the state to carry out the purposes of this
17article.
18(7) Promote the growth of small businesses by doing the
19following:
20(A) Assisting small businesses in obtaining and preparing the
21permits required to conduct business in Indiana.
22(B) Serving as a liaison between small businesses and state
23agencies.
24(C) Providing information concerning business assistance
25programs available through government agencies and private
26sources.
27(8) Establish a transparency portal on its current website. The
28page must provide the following:
29(A) By program, cumulative information on the total amount
30of incentives awarded, the total number of companies that
31received the incentives and were assisted in a year, and the
32names and addresses of those companies.
33(B) A mechanism on the page whereby the public may request
34further information online about specific programs or
35incentives awarded.
36(C) A mechanism for the public to receive an electronic
37response.
38(D) Access to the following:
39(i) Any information or report that is required by statute to be
40included in the economic incentives and compliance report
41submitted under IC 5-28-28.
42(ii) Final offer of public financial resources to which the
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1corporation is a party.
2(iii) Reports that the corporation submitted to the general
3assembly.
4      (9) Establish a dashboard that is easily accessible from either
5      the corporation's website or the transparency portal (or both)
6      to convey economic development data in an easily
7      understandable manner that deploys charts and graphs. The
8      dashboard must include at least the following information:
9(A) Longitudinal representations of economic development
10data derived primarily from the elements that are required
11under IC 5-28-28-6 to be included in the economic
12incentives and compliance report.
13(B) Depictions of:
14(i) the amount of tax money spent on economic
15development;
16(ii) the number of actual jobs created, and the number of
17jobs expected to be created;
18(iii) a ratio showing tax money spent per job created;
19(iv) the distribution by county or region where tax
20money was spent and jobs were created; and
21(v) how the corporation spends tax money and generates
22revenue.
23    (c) The corporation may do the following:
24      (1) Disseminate information concerning the industrial,
25      commercial, governmental, educational, cultural, recreational,
26      agricultural, and other advantages of Indiana.
27      (2) Plan, direct, and conduct research activities.
28      (3) Assist in community economic development planning and the
29      implementation of programs designed to further community
30      economic development.
31    (d) The dashboard required to be established under subsection
32 (b)(9) may also include the following information:
33      (1) A ratio projecting the tax money spent relative to tax
34      revenue generated from the corporation's activities.
35      (2) Average wages of new jobs attracted to Indiana or
36      expected to be attracted to Indiana.
37    SECTION 7. IC 5-28-6-2.5 IS ADDED TO THE INDIANA CODE
38 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
39 UPON PASSAGE]: Sec. 2.5. (a) The corporation shall analyze the
40 potential impact of a proposed economic development investment
41 on the costs to provide the following utility services to ratepayers:
42      (1) Water.
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1(2) Wastewater.
2(3) Electricity.
3(4) Natural gas.
4    (b) In performing the analysis under subsection (a), the
5 corporation must consider each of the following:
6(1) The existing utility infrastructure available to serve the
7project.
8(2) Any new utility infrastructure needed to serve the project.
9(3) Water resource availability for the project.
10    (c) For any proposed economic development investment that is
11 projected to negatively impact ratepayers for a utility service listed
12 in subsection (a), the corporation shall develop and implement a
13 mitigation plan to offset the costs of providing any or all of the
14 utility services listed in subsection (a) that are associated with the
15 project.
16    (d) In performing the analysis under subsection (a) and
17 preparing a mitigation plan under subsection (c) (if mitigation is
18 required), the corporation may consult with the following:
19(1) The Indiana utility regulatory commission.
20(2) The department of natural resources.
21(3) Utilities that provide any of the utility services listed in
22subsection (a) to the ratepayers located in the area of the
23project.
24(4) Counties, cities, towns, and other political subdivisions
25located in the area of the project.
26(5) Consumer and ratepayer advocates.
27    SECTION 8. An emergency is declared for this act.
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