Bill Text: IN HB1192 | 2011 | Regular Session | Amended
Bill Title: Microenterprise partnership program.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-05-16 - SECTION 9 effective 04/28/2011 [HB1192 Detail]
Download: Indiana-2011-HB1192-Amended.html
Citations Affected: IC 5-20; IC 5-28; noncode.
Synopsis: Microenterprise partnership program. Transfers
administration of the microenterprise partnership program from the
Indiana economic development corporation to the Indiana housing and
community development authority. Renames the "microenterprise
partnership program fund" administered by the Indiana economic
development corporation as the "small business development fund".
Creates a new microenterprise partnership program fund under
administration of the Indiana housing and community development
authority. Repeals the law concerning the microenterprise partnership
program administered by the Indiana economic development
corporation.
Effective: Upon passage; July 1, 2011.
January 10, 2011, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
January 18, 2011, reported _ Do Pass.
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
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
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Chapter 7. Microenterprise Partnership Program Fund
Sec. 1. As used in this chapter, "authority" refers to the Indiana housing and community development authority created by IC 5-20-1-3.
Sec. 2. As used in this chapter, "fund" refers to the microenterprise partnership program fund established by section 3 of this chapter.
Sec. 3. The microenterprise partnership program fund is established within the state treasury. The purpose of the fund is to carry out the microenterprise partnership program under IC 5-20-8.
Sec. 4. The fund consists of:
(1) appropriations from the general assembly;
(2) federal grants; and
(3) gifts.
Sec. 5. The authority shall administer the fund. The following may be paid from money in the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry out the purposes of this chapter and IC 5-20-8.
Sec. 6. The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited in the fund.
Sec. 7. Money in the fund at the end of a state fiscal year does not revert to the state general fund.
Sec. 8. The fund is subject to an annual audit by the state board of accounts. The full costs of the audit shall be paid from money in the fund.
Chapter 8. Microenterprise Partnership Program
Sec. 1. As used in this chapter, "authority" refers to the Indiana housing and community development authority created by IC 5-20-1-3.
Sec. 2. As used in this chapter, "microenterprise" means a business having not more than five (5) employees. The term includes startup, home based, and self-employed businesses.
Sec. 3. As used in this chapter, "microloan" means a business loan of not more than twenty-five thousand dollars ($25,000).
Sec. 4. As used in this chapter, "microloan delivery organization" means a community based or nonprofit program that:
(1) has developed a viable plan for providing training, access to financing, and technical assistance to microenterprises; and
(2) meets the criteria and qualifications set forth in this chapter.
Sec. 5. As used in this chapter, "operating costs" refers to the costs associated with administering a loan or a loan guaranty, administering a revolving loan program, or providing business training and technical assistance to a microloan recipient.
Sec. 6. As used in this chapter, "program" refers to the microenterprise partnership program established under section 7 of this chapter.
Sec. 7. (a) The authority shall establish the microenterprise
partnership program to provide grants to microloan delivery
organizations.
(b) A grant provided under subsection (a) may not exceed
twenty-five thousand dollars ($25,000).
(c) A microloan delivery organization receiving a grant under
this section must use the grant for the purposes set forth in this
chapter.
Sec. 8. To establish the criteria for making a grant to a
microloan delivery organization, the authority shall consider the
following:
(1) The microloan delivery organization's plan for providing
business development services and microloans to
microenterprises.
(2) The scope of services provided by the microloan delivery
organization.
(3) The microloan delivery organization's plan for
coordinating the services and loans provided under this
chapter with those provided by commercial lending
institutions.
(4) The geographic representation of all regions of Indiana,
including both urban and rural communities and
neighborhoods.
(5) The microloan delivery organization's emphasis on
supporting female and minority entrepreneurs.
(6) The ability of the microloan delivery organization to
provide business training and technical assistance to
microenterprises.
(7) The ability of the microloan delivery organization to
monitor and provide financial oversight of recipients of
microloans.
(8) The sources and sufficiency of the microloan delivery
organization's operating funds.
Sec. 9. A grant received by a microloan delivery organization
may be used for the following purposes:
(1) To satisfy matching fund requirements for federal or
private grants.
(2) To establish a revolving loan fund from which the
microloan delivery organization may make loans to
microenterprises.
(3) To establish a guaranty fund from which the microloan
delivery organization may guarantee loans made by
commercial lending institutions to microenterprises.
(4) To pay the operating costs of the microloan delivery organization. However, not more than ten percent (10%) of a grant may be used for this purpose.
Sec. 10. Money appropriated to the program must be matched by at least an equal amount of money derived from any of the following nonstate sources:
(1) Private foundations.
(2) Federal sources.
(3) Local government sources.
(4) Quasi-governmental entities.
(5) Commercial lending institutions.
(6) Any other source whose funds do not include money appropriated by the general assembly.
Sec. 11. At least fifty percent (50%) of the microloan money disbursed by a microloan delivery organization must be disbursed in microloans that do not exceed ten thousand dollars ($10,000).
Sec. 12. The authority may prescribe standards, procedures, and other guidelines to implement this chapter.
Sec. 13. The authority may use money in the microenterprise partnership program fund established by IC 5-20-7-3 or any other money available to the authority to carry out this chapter.
Sec. 14. Before August 1 of each year, the authority shall submit to the budget committee a supplemental report on a longitudinal study:
(1) describing the economic development outcomes resulting from microloans made under this chapter; and
(2) evaluating the effectiveness of the microloan delivery organizations and the microloans made under this chapter in:
(A) expanding employment and self-employment opportunities in Indiana; and
(B) increasing the incomes of persons employed by microenterprises.
(1) Contribute to the strengthening of the economy of Indiana by encouraging the organization and development of new business enterprises, including technologically oriented enterprises.
(2) Submit an annual report to the governor and to the general assembly not later than November 1 of each year. The annual report must:
(A) include detailed information on the structure, operation, and financial status of the corporation, including:
(i) detailed information on the corporation's efforts to support the development of small businesses under this chapter; and
(ii) an evaluation of the results of the corporation's efforts to encourage the development of small businesses under this chapter; and
(B) be in an electronic format under IC 5-14-6.
The board shall conduct an annual public hearing to receive comment from interested parties regarding the annual report, and notice of the hearing shall be given at least fourteen (14) days before the hearing in accordance with IC 5-14-1.5-5(b).
(3) Approve and administer loans from the
(4) Conduct activities for nontraditional entrepreneurs under IC 5-28-18.
(5) Establish and administer the small and minority business financial assistance program under IC 5-28-20.
(b) The corporation may do the following to carry out this chapter:
(1) Receive money from any source, enter into contracts, and expend money for any activities appropriate to its purpose.
(2) Do all other things necessary or incidental to carrying out the corporation's functions under this chapter.
(3) Establish programs to identify entrepreneurs with marketable ideas and to support the organization and development of new business enterprises, including technologically oriented enterprises.
(4) Conduct conferences and seminars to provide entrepreneurs with access to individuals and organizations with specialized
expertise.
(5) Establish a statewide network of public, private, and
educational resources to assist the organization and development
of new enterprises.
(6) Operate a small business assistance center to provide small
businesses, including minority owned businesses and businesses
owned by women, with access to managerial and technical
expertise and to provide assistance in resolving problems
encountered by small businesses.
(7) Cooperate with public and private entities, including the
Indiana Small Business Development Center Network and the
federal government marketing program, in exercising the powers
listed in this subsection.
(8) Establish and administer the small and minority business
financial assistance program under IC 5-28-20.
(9) Approve and administer loans from the microenterprise
partnership program small business development fund
established by IC 5-28-18.
(10) Coordinate state funded programs that assist the organization
and development of new enterprises.
(1) There exists in Indiana an inadequate amount of locally managed, pooled investment capital in the private sector available to invest in new and existing business ventures, including business ventures by nontraditional entrepreneurs.
(2) Investing capital and business management advice in new and existing business ventures, including business ventures by nontraditional entrepreneurs, will enhance economic development and create and retain employment in Indiana. This investment will enhance the health and general welfare of the people of Indiana, and it constitutes a public purpose.
(3) Nontraditional entrepreneurs have not engaged in entrepreneurship and self-employment to the extent found in the mainstream of Indiana's population. Realizing the potential of
these nontraditional entrepreneurs will enhance Indiana's
economic vitality.
(b) It is the policy of the state to promote economic development
and entrepreneurial talent of Indiana's inhabitants by the creation of the
microenterprise partnership program small business development
fund for the public purpose of promoting opportunities for gainful
employment and business opportunities.
(1) provide loans approved by the corporation under this chapter and IC 5-28-17; and
(2) provide loans or loan guarantees under the small and minority business financial assistance program established by IC 5-28-20-9.
(b) The fund consists of appropriations from the general assembly and loan repayments.
(c) The corporation shall administer the fund. The following may be paid from money in the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry out the purposes of this chapter
(d) Earnings from loans made under this chapter shall be deposited in the fund.
(e) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited in the state general fund.
(f) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(g) The fund is subject to an annual audit by the state board of accounts. The fund shall bear the full costs of the audit.
(h) With respect to loans or loan guarantees made from the fund before July 1, 2011, references in law or loan documents made to the microenterprise partnership program fund before July 1, 2011, shall be construed after June 30, 2011, as references to the small business development fund.
34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 2. As used in this chapter, "fund" refers to the
microenterprise partnership program small business development
fund established by IC 5-28-18-7.
(b) As used in this SECTION, "IEDC" refers to the Indiana economic development corporation established by IC 5-28-3-1.
(c) The IEDC shall cooperate with the authority to transfer the following from the IEDC to the authority:
(1) Money in the microenterprise partnership program fund under IC 5-28-18, before being renamed by this act, that was designated for use by the microenterprise partnership program under IC 5-28-19, before its repeal by this act.
(2) Accounting records of grants made from the microenterprise partnership program under IC 5-28-19, before its repeal by this act.
(3) Files and any other data pertaining to grants made from the microenterprise partnership program under IC 5-28-19, before its repeal by this act.
(d) The authority shall deposit money transferred under subsection (c)(1) in the microenterprise partnership program fund established by IC 5-20-7-3, as added by this act.
(e) The transfers under subsection (c) shall be made as soon as practicable on or after July 1, 2011.
(f) This SECTION expires December 31, 2011.
