Lawmakers propose transparency measures for Indiana Economic Development Corp.

After a year of public scrutiny of the Indiana Economic Development Corp.’s operations, state lawmakers have filed bills seeking to increase transparency and oversight at the agency.

The IEDC has been subject to criticism regarding its handling of the LEAP Research and Innovation District in Boone County, including allegations of secrecy involving land acquisitions, use of taxpayer dollars, ongoing company deals and large water transfer projects. (LEAP stands for Limitless Exploration/Advanced Pace.)

“My top priority for the session is to start to restore some of the public’s trust in the IEDC,” Sen. Spencer Deery, R-West Lafayette, told IBJ. “I think that anybody that appreciates those gains should be a major advocate of restoring some of the trust that has been lost in the last few years.”

With Senate Bill 251, Deery said he is attempting to strike a balance between understanding the need for confidentiality in economic development deals while also limiting what he believes to be unnecessary secrecy in the agency.

For the past two years, the LEAP District in Lebanon has sparked debate about whether the state should buy land for economic development and how it manages its water supply.

The state’s ambitious 9,000-acre district requires outside water sources because the county doesn’t have sufficient resources to support long-term plans for the campus, despite state officials saying the wider region doesn’t have a water shortage.

As a result, at least two water infrastructure projects—a 35-mile Wabash River aquifer pipeline and an extension of the Citizens Energy system—have been proposed to help solve the problem.

SB 251 would designate an ombudsman, or a state employee who investigates and resolves complaints, from the Board of Accounts. This person would have access to all materials and board meetings so they could make recommendations to the Legislature or conduct investigations.

“It’s their job to be in the room, to have complete access to all the things that the Board is considering, but they’re not contributing to economic development conversations,” he said. “They’re there just to be the citizens’ watchdog, the citizens’ advocate.”

The bill would also require the IEDC board to include two non-voting lawmaker members. The board is currently chaired by the governor and includes the secretary of commerce, the IEDC chief strategy officer and 13 governor-appointed business leaders.

To increase data transparency, Deery’s bill would require the IEDC to establish a dashboard with information about economic incentives and compliance that is more accessible to the general population.

“I have a master’s degree, and I can’t make sense of a good chunk of it,” he said. “It’s not realistic to think that everyday citizens could.”

As for utilities, the IEDC would need to determine the impact a project would have on water, wastewater, electricity and natural gas. It would need to include information on existing and needed infrastructure and water resource availability. If a report finds a project will negatively impact ratepayers, the bill specifies that the IEDC must develop a mitigation plan. This is an idea borrowed from one of Gov.-elect Mike Braun’s economic development proposals.

The bill was sent to the Senate Commerce and Technology Committee. A date for first reading has not yet been scheduled.

More transparency

Rep. Matt Commons, R-Williamsport, filed a bill similar to Deery’s that would install several IEDC transparency measures. Like the Senate Bill, House Bill 1269 would require two lawmakers be appointed to the IEDC board and includes similar data reporting requirements.

A primary difference is that Commons’ bill would dedicate 5% of appropriated funds for fiscal years 2026 and 2027 to economic development projects located in counties with a population of less than 50,000—more than two-thirds of Indiana counties. Using fiscal year 2025’s appropriation, that would amount to about $18 million.

The bill was sent to the House Government and Regulatory Reform Committee. A committee hearing date has yet to be scheduled.

Confidentiality restrictions

Rep. Robb Greene, R-Shelbyville, authored a bill disallowing the IEDC from entering into an agreement with a company that requires confidentiality of the contract, its terms or discussion of it. Often, companies and state officials agree to confidentiality while negotiating a deal.

House Bill 1264‘s fiscal note says it could affect the agency’s fiscal year 2026 negotiations and result in fewer incentive packages. In turn, it says it could decrease state expenditures on those awards. The fiscal note did not provide specific estimated impact.

The bill was sent to the House Government and Regulatory Reform Committee. No date has been set for a first reading.