HOUSE BILL No DIGEST OF INTRODUCED BILL

Transcription

1 Intrduced Versin HOUSE BILL N DIGEST OF INTRODUED BILL itatins Affected: I Snsis: Small business lans. Establishes the small business lan rgram administered b the Indiana finance authrit (IFA). Establishes the small business lan fund. Authrizes the IFA t transfer mne in the fund t financial institutins fr desit at reduced interest rates. Requires the financial institutin t lan the mne t arved small businesses. Prvides that the interest rate charged t the small business ma nt exceed the rate aable t the IFA lus 3%. Prvides that the maximum amunt that ma be desited fr a articular small business lan is $25,000. Prvides that at least 50% f the desits received b a financial institutin fr a small business lan ma nt exceed $10,000. Requires an annual rert frm the entit resnsible fr carring ut the duties f the Indiana ecnmic develment crratin cncerning small business develment. Effective: Jul 1, Niezgdski Januar 22, 2013, read first time and referred t mmittee n mmerce, Small Business and Ecnmic Develment.

2 Intrduced First Regular Sessin 118th General Assembl (2013) PRINTING ODE. Amendments: Whenever an existing statute (r a sectin f the Indiana nstitutin) is being amended, the text f the existing rvisin will aear in this stle te, additins will aear in this stle te, and deletins will aear in this stle te. Additins: Whenever a new statutr rvisin is being enacted (r a new cnstitutinal rvisin adted), the text f the new rvisin will aear in this stle te. Als, the wrd NEW will aear in that stle te in the intrductr clause f each SETION that adds a new rvisin t the Indiana de r the Indiana nstitutin. nflict recnciliatin: Text in a statute in this stle te r this stle te recnciles cnflicts between statutes enacted b the 2012 Regular Sessin f the General Assembl. HOUSE BILL N A BILL FOR AN AT t amend the Indiana de cncerning state ffices and administratin. Be it enacted b the General Assembl f the State f Indiana: 1 SETION 1. I IS ADDED TO THE INDIANA ODE AS 2 A NEW HAPTER TO READ AS FOLLOWS [EFFETIVE JULY 3 1, 2013]: 4 hater 34. Small Business Lan Prgram 5 Sec. 1. As used in this chater, "authrit" refers t the Indiana 6 finance authrit created b I Sec. 2. As used in this chater, "financial institutin" means an 8 bank, trust cman, crrate fiduciar, savings assciatin, 9 credit unin, savings bank, bank f discunt and desit, r 10 industrial lan and investment cman that is: 11 (1) rganized r rerganized under the laws f this state; r 12 (2) rganized r rerganized under the laws f the United 13 States and has its headquarters in Indiana. 14 The term includes a cnsumer finance institutin licensed t make 15 suervised r regulated lans under I Sec. 3. As used in this chater, "fund" refers t the small 17 business lan fund established b sectin 6 f this chater.

3 2 1 Sec. 4. As used in this chater, "articiating financial 2 institutin" means a financial institutin arved b the authrit 3 t articiate in the small business lan rgram established b 4 this chater. 5 Sec. 5. As used in this chater, "small business" means an 6 ersn, firm, crratin, limited liabilit cman, artnershi, 7 r assciatin that: 8 (1) is activel engaged in business in Indiana and maintains its 9 rincial lace f business in Indiana; 10 (2) is indeendentl wned and erated; 11 (3) emls nt mre than fift (50) full-time emlees; and 12 (4) has grss annual receits f nt mre than five millin 13 dllars ($5,000,000). 14 Sec. 6. (a) There is established the small business lan fund. The 15 fund shall be administered b the authrit under the directin f 16 the authrit's bard. Mne in the fund must be used fr the 17 urses f this chater. 18 (b) The fund cnsists f the fllwing resurces: 19 (1) Arriatins frm the general assembl. 20 (2) Gifts, grants, and dnatins f an tangible r intangible 21 rert frm ublic r rivate surces. 22 (3) Investment incme earned n the fund's assets. 23 (4) Reaments f lans frm the fund. 24 (c) The treasurer f state shall invest the mne in the fund nt 25 currentl needed t meet the bligatins f the fund in the same 26 manner as ther ublic funds ma be invested. 27 (d) The mne remaining in the fund at the end f a fiscal ear 28 des nt revert t the state general fund. 29 (e) Interest earned n the fund ma be used b the authrit t 30 a exenses incurred in the administratin f the fund. 31 Sec. 7. A financial institutin that wishes t articiate in the 32 small business lan rgram established b this chater shall al 33 t the authrit fr the authrit's arval. A financial institutin 34 ma nt articiate in the rgram until the financial institutin's 35 alicatin is arved. The authrit shall ublish and maintain 36 a list f articiating financial institutins n the authrit's 37 Internet web site. 38 Sec. 8. (a) A small business that wishes t btain a lan under 39 this chater must submit an alicatin t a articiating financial 40 institutin n a frm rescribed b the authrit. The alicatin 41 must describe the reasns fr which the small business will use a 42 lan received under this chater.

4 3 1 (b) A small business ma nt receive a lan under this chater 2 unless the articiating financial institutin t which the small 3 business submitted the alicatin required b subsectin (a): 4 (1) arves the alicatin submitted b the small business; 5 and 6 (2) alies fr and receives a desit f mne transferred 7 frm the fund that must be used t rvide the lan. 8 (c) A articiating financial institutin must arve an 9 alicatin submitted under subsectin (a) r infrm the alicant 10 that the alicatin has been rejected b the articiating financial 11 institutin nt mre than fifteen (15) das after the date the 12 alicatin is submitted. 13 (d) In determining whether t arve an alicatin submitted 14 under subsectin (a), the articiating financial institutin shall: 15 (1) determine that the alicant is likel t rea the rsed 16 lan, based n the creditwrthiness f the alicant and an 17 insurers r guarantrs; 18 (2) require an alicant t have been rfitable in at least tw 19 (2) f the revius three (3) ears the alicant has erated, 20 if the small business has been in existence fr three (3) r 21 mre ears; and 22 (3) evaluate the alicatin using guidelines and criteria 23 develed b the entit resnsible fr carring ut the duties 24 f the Indiana ecnmic develment crratin under 25 I cncerning small business develment, t the 26 extent thse guidelines and criteria d nt cnflict with the 27 requirements f this chater. 28 Sec. 9. A articiating financial institutin that arves an 29 alicatin submitted under sectin 8 f this chater fr a small 30 business lan shall al t receive a desit under this chater b 31 submitting t the authrit: 32 (1) a c f the arved alicatin; and 33 (2) an additinal infrmatin required b the authrit n a 34 frm rescribed b the authrit. 35 Sec. 10. The authrit shall establish a rgram review 36 cmmittee t review each alicatin received frm a articiating 37 financial institutin under sectin 9 f this chater. The cmmittee 38 must cnsider whether the rsed small business lan is 39 ecnmicall sund and will benefit the ele f Indiana b 40 strengthening the ecnm f Indiana befre making a 41 recmmendatin t the authrit cncerning the small business 42 lan fr which the articiating financial institutin has alied

5 4 1 fr a desit. 2 Sec. 11. Un the recmmendatin f the rgram review 3 cmmittee arving a small business lan, the authrit ma 4 transfer mne frm the fund t the articiating financial 5 institutin fr desit. Interest aable t the authrit n mne 6 desited in the financial institutin under this sectin ma nt 7 exceed the greater f: 8 (1) zer ercent (0%); r 9 (2) the difference between: 10 (A) the interest rate fr fift-tw (52) week United States 11 Treasur bills, as in effect n the da f the desit; minus 12 (B) ne and five-tenths ercent (1.5%). 13 Sec. 12. (a) A articiating financial institutin that receives 14 mne fr desit under sectin 11 f this chater must use the 15 mne t rvide a lw interest lan t the wner f the small 16 business, and the wner f the small business must use the lan 17 nl fr urses allwed b sectin 13 f this chater. A 18 articiating financial institutin that makes a lan under this 19 chater ma nt charge an interest rate t the wner f the small 20 business that exceeds: 21 (1) the interest rate aable t the authrit under sectin f this chater; lus 23 (2) three ercent (3%). 24 (b) A articiating financial institutin and the wner f a small 25 business that receives a lan under this chater shall enter a lan 26 agreement that must include the fllwing: 27 (1) A requirement that the lan rceeds be used fr secified 28 urses cnsistent with the requirements f this chater. 29 (2) The term f the lan, which ma nt exceed five (5) ears. 30 (3) A rvisin secifing that interest des nt begin t 31 accrue n the rincial amunt f the lan until the date 32 ccurring six (6) mnths after the date the agreement is 33 entered int. 34 (4) The reament schedule, the first ament f which is nt 35 due until the date ccurring six (6) mnths after the date the 36 agreement is entered int. 37 (5) The interest rate f the lan. 38 (6) An ther terms and rvisins that the authrit r 39 financial institutin requires. 40 (c) A lan agreement under this sectin ma als cntain: 41 (1) a requirement that the lan be insured directl r 42 indirectl b a lan insurer r be guaranteed b a lan

6 5 1 guarantr; and 2 (2) a requirement f an ther te f securit r cllateral 3 that the authrit r financial institutin cnsiders reasnable 4 r necessar. 5 Sec. 13. The wner f a small business ma use the rceeds f 6 a lan received under this chater fr ne (1) r mre f the 7 fllwing urses: 8 (1) T urchase real rert. 9 (2) T cnstruct, renvate, r exand a building. 10 (3) T urchase equiment, furniture, fixtures, r inventr. 11 (4) Wrking caital urses, including debt reductin. 12 Sec. 14. (a) The maximum amunt f a desit made under 13 sectin 11 f this chater fr a articular small business lan is 14 twent-five thusand dllars ($25,000). 15 (b) In additin t the limit secified in subsectin (a), at least 16 fift ercent (50%) f the desits made t a articiating 17 financial institutin under sectin 11 f this chater fr all small 18 business lans that the articiating financial institutin makes 19 under this chater ma nt exceed ten thusand dllars ($10,000). 20 Sec. 15. (a) The authrit shall, fllwing the clse f each state 21 fiscal ear, submit an annual rert f its activities under this 22 chater fr the receding state fiscal ear t the gvernr, the 23 budget cmmittee, and the general assembl. A rert submitted 24 t the general assembl must be in an electrnic frmat under 25 I The gvernr shall frward a c f the rert t the 26 entit resnsible fr carring ut the duties f the Indiana 27 ecnmic develment crratin under I cncerning 28 small business develment. 29 (b) Beginning Nvember 1, 2014, and befre Nvember 1 f 30 each succeeding ear, the entit resnsible fr carring ut the 31 duties f the Indiana ecnmic develment crratin under 32 I cncerning small business develment shall: 33 (1) review the rert submitted under subsectin (a); 34 (2) evaluate the effectiveness f the small business lan 35 rgram; and 36 (3) submit its findings t the gvernr, the budget cmmittee, 37 the authrit, and the general assembl. 38 A rert submitted t the general assembl must be in an 39 electrnic frmat under I Sec. 16. (a) An bligatin f the authrit fr lsses n lans 41 resulting frm death, default, bankrutc, r ttal r ermanent 42 disabilit f brrwers is nt a debt f the state but is aable

7 1 slel frm the fund. 2 (b) The making f lans frm mne transferred frm the fund 3 under this chater des nt cnstitute the lending f credit b the 4 state fr urses f an ther statute r the nstitutin f the 5 State f Indiana. 6