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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe creation of a new state office dedicated to improving the small-business environment in Indiana was passed by members of the House on Tuesday.
House Bill 1172 would establish the Office of Entrepreneurship and Innovation, which would manage several new and existing programs to support small business owners and aspiring entrepreneurs.
Bill author Rep. Jake Teshka, R-North Liberty, said the office would consolidate state government programming to make it more accessible for business owners. The office would be a standalone agency and housed under Secretary of Commerce David Adams, who also oversees the Indiana Economic Development Corp., or IEDC, the Department of Workforce Development and Indiana Destination Development Corp.
Several lawmakers and state leaders, including Gov. Mike Braun, have said the IEDC is too focused on bagging major company investments and development is overly concentrated in certain areas. Braun has repeatedly said he wants to spread economic development to all four corners of the state.
Teshka alluded to these concerns Tuesday on the House floor.
“This isn’t about adding an additional layer of government. It’s not about bashing the IEDC,” he said. “It’s about a focus and a renewed intentionality on our state’s best and brightest innovators and entrepreneurs.”
The bill has broad support from the business community, including the Indiana Chamber of Commerce, Indy Chamber of Commerce, the Indiana chapter of the National Federation of Independent Business and individual business owners.
The bill mirrors one of the governor’s detailed priorities too, though Teshka previously told IBJ he drafted the bill before learning about his agenda. Teshka said he has since worked with the Secretary of Commerce’s staff to update the language.
The Governor’s Office included funding for the new office in its budget proposal. It would need about $1.8 million in state funding in its first year for staff salaries and operations, according to the bill’s fiscal note. That amount does not include program funding.
The bill was passed 85-7 with bipartisan support Tuesday. It now moves to the Senate for consideration.
The seven opposing votes hinged on concerns of further expanding government. In a commerce committee, several Republicans pushed for the office to have a sunset clause, so lawmakers would be required to return to evaluate whether the office is impactful after a certain date. Approved amendments have not included such language.
One amendment that did pass rolled back some of the bill’s specificity. It cut requirements for specific programs currently hosted under the IEDC to be moved to the new office, and it scrapped requirements to produce a report about the state of entrepreneurship.
“The administration is trying to work on getting their feet underneath them and wanted some flexibility,” Teshka said on the floor Tuesday.
Rep. Heath VanNatter, R-Kokomo, questioned whether it would be create redundancy, given existing efforts. The Indiana Small Business Development Center has 10 regional offices throughout the state and provides services similar to what proposed in the bill.
Josh Richardson, Secretary Adams’ chief of staff, during a Jan. 29 hearing that this office represents a consolidation of services rather than an expansion. Instead, he said pulling out programs into this office would inspire more efficiency.
“The real key here,” Richardson said, “is just making sure that we’re providing streamlined services for Hoosier entrepreneurs and businesses to grow and to be successful in Indiana.”
If the bill is passed by the General Assembly and signed by the governor, the earliest the office can begin operating is July 1.
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maybe they can hire some former federal employees to run the operation…