The Indiana House soon will consider a bill requiring the Indiana Economic Development Corp. to be more transparent about incentives it gives companies.
Senate Bill 162 was one of several bills sent to the Indiana House on Tuesday, which was the last day the Senate’s bills could “cross over” to its sister chamber.
The transparency bill was authored by Sen. Mike Delph, R-Carmel, and co-authored by Sen. Jim Banks, R-Columbia City, who represents Grant County.
“We both agree that when public funds are involved there should be more transparency,” Banks said.
However, the bill does not include transparency requirements for local economic development groups that may receive public money to provide incentives.
The IEDC has been criticized for its lack of transparency over how many jobs were actually created from its incentives.
The agency has provided incentives for Marion projects, including TriEnda, which failed to reach its promised 340 jobs and closed. Recently, it pledged up to $5.8 million in tax credits to baked goods supplier Café Valley. Today, Gov. Mike Pence is expected to participate in a “major economic development announcement” in Kokomo with Chrysler Group’s chairman and CEO Sergio Marchionne.
Banks said the issue was one of the most important taken up by the Senate and called the 49-1 vote a sign of “broad support for transparency.” The bill picked up four Republicans and four Democrats as authors or co-authors and received support from Gov. Mike Pence and the IEDC’s new leadership.
It requires that IEDC incentive agreements be made available after deals are executed and annual reports include updates on actual jobs created as reviewed by an independent auditor.
Sen. Travis Holdman, R-Markle, said the bill struck a balance between disclosure and keeping the state “competitive.”
Rep. Kevin Mahan, R-Hartford City, said he wasn’t particularly familiar with the Senate bill, but he believed providing incentives was a “two-way street” in terms of companies providing information on jobs created with public support.
“I think anytime you’re dealing with government funds and government projects we are working for the people,” he said.
Two Democrats and two Republicans are sponsoring or co-sponsoring the bill as it goes through the House, including House Minority Leader Rep. Scott Pelath, D-Michigan City.
Economic development transparency might have broad support, but not every bill that passed from the Senate did so easily.
Holdman authored two bills that attracted controversy in back-to-back votes Tuesday. Senate Bill 371 requires women receiving abortion-inducing drugs to have ultrasounds and Senate Bill 373 restricts undercover videos from being made at agricultural or industrial operations.
Both bills received national media attention and substantial criticism.
Holdman said Senate Bill 371 only applies to “abortion clinics” and not to general practitioners, whom he said would be more familiar with their patients’ health conditions that might be complicated by using drugs like RU-486. Senate critics have said the bill limits health care options for women.
Holdman said criticisms that Senate Bill 373 restricts the First Amendment right of a free press are off base and there are “safe harbor” provisions for people who believe a crime or violation has occurred. He said the issue was really about “property rights” and videos being made of farming or industrial operations without permission.
“If you come on my property you don’t have any First Amendment rights,” he said as an example. “You’re on my private property. I think my private property rights trump your First Amendment rights.”
The Hoosier State Press Association has voiced opposition to Senate Bill 373.