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Thursday, January 06, 2005
Indiana Government - More on IEDC changes
Yesterday the House Committee on Commerce and Economic Development and Small Business finished its consideration of HB 1003, the proposed revisions to the IEDC law, and voted the bill out Do Pass Amended. A number of papers had reports today on yesterday's action:
- The Louisville CJ published an AP story it headlined "Committee OKs plan on new-job oversight."
- The Evansville C&P ran a story by Jennifer Whitson headed "Committee launches Daniels' economic development plan." Some quotes:
Backers of the switch say a board made up of private sector representatives appointed by the governor and not hampered by the "red tape" of normal state agency regulations will be able to move quickly to woo businesses considering locating in Indiana.
In 2003, the legislature passed a measure to create the board, called the Indiana Economic Development Corporation. But now leaders and Daniels want to go back and fine tune the proposal.
Instead of the 23-member board first envisioned to run the corporation, the bill trims membership to 12. Daniels will be chairman of the board, which will oversee state grants and loans meant to spur the economy.
And the corporation will be able to accept private donations that it can use to lure new companies and reward those that stay in Indiana.
The corporation's independent status has raised concerns for some lawmakers. Democrats wanted to add amendments saying that corporation board members could not make campaign donations and that internal rules for running the corporation would have to be open to public hearings. Those amendments were either defeated or not allowed a vote.
On Wednesday, the committee included a Democratic amendment that clarified that the corporation's actions were subject to Indiana's open records laws.
Democrats still expressed concerns about openness and accountability and two eventually voted against the measure.
"(The bill) takes everything out about what's being said about open government," said Rep. Dave Crooks, D-Washington. "It's going to look like a back-room deal."
Republicans defended the measure saying it would be more transparent than the department it would replace.
"If you want ultimate accountability, the governor is the chairman of the board," said Rep. Steve Heim, R-Culver. He said that in the current set-up "you can blame bureaucrats" when things go wrong, but with the change, the buck will stop at Daniels' desk.
- "Economic bill clears 1st panel: Commerce secretary creation in legislation" is the headline to Niki Kelly's story today in the Fort Wayne JG. Some quotes:
“This is a huge concentration of power in a small group of people who can determine their own rules,” said Rep. Carolene Mays, D-Indianapolis.
The 192-page bill accomplishes a number of critical items advocated by Gov.-elect Mitch Daniels. Foremost, it creates the position of secretary of commerce, which will be filled by Fort Wayne businesswoman Pat Miller.
Miller – who co-founded the successful handbag company Vera Bradley Designs – would serve as CEO of the Indiana Economic Development Corp. – an entity charged with taking over all business and economic development functions of the soon-to-be-defunct Department of Commerce.
The bulk of the corporation’s duties would be to raise private money and use that – along with state tax dollars – to entice businesses to locate and create new jobs in Indiana.
The corporation would have a 12-member board – of which Daniels would be the chairman. He would appoint the rest, as well as a president who would report to Miller.
Committee members agreed to add language Wednesday making it clear that the corporation must follow Indiana public access and open-door laws. There is an exception for financial negotiations with companies until incentive packages are finalized.
The corporation will be free from many other state regulations, including those governing hiring, purchasing and bidding – as well as the public process in which administrative rules are made.
Proponents believe this is necessary to ensure Indiana can move with speed in attracting employers and jobs.
- "Plan for economic development agency passes 1st test: Full House now will take up Daniels' proposal, which includes replacing Department of Commerce," is the headline to this story by J.K. Wall in the business section of the Indy Star. A quote:
The proposed legislation would replace the Department of Commerce, which has an $82 million budget, with the economic development commission. It would be controlled by Daniels and 11 other board members.
Nearly half of the Department of Commerce's budget comes from the federal government in money controlled by the community development and economic policy divisions. Those divisions would be separate from a new development commission.
The development commission would encompass many economic development programs now separate from Commerce, such as the Small Business Development Corp. and the Steel Industry Advisory Commission.
The proposal is the first major piece of Daniels' legislative agenda brought to the General Assembly. Daniels has indicated he would like the bill enacted before the end of January. Given that his Republican colleagues control both the House and Senate, the bill is likely to pass.
Posted by Marcia Oddi on January 6, 2005 12:55 PM
Posted to Indiana Government