SB 162-1_ Filed 01/22/2013, 16:04

COMMITTEE REPORT




MADAM PRESIDENT:

    The Senate Committee on Tax and Fiscal Policy, to which was referred Senate Bill No. 162, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

    Delete page 1.

SOURCE: Page 2, line 1; (13)AM016201.2. -->     Page 2, delete lines 1 through 6.
    Page 3, delete lines 32 through 34.
    Page 4, delete lines 5 through 8, begin a new line double block indented and insert:
        " (D) Notwithstanding clause (A), an incentive agreement with an incentive recipient shall be available for inspection and copying under section 3 of this chapter after the date the incentive recipient and the Indiana economic development corporation execute the incentive agreement regardless of whether negotiations are in progress with the recipient after that date regarding a modification or extension of the incentive agreement.".
    Page 9, line 1, delete "The" and insert " If a financial investment by an applicant is a condition for providing an incentive, the".
    Page 9, line 3, delete "job creation".
    Page 9, line 4, delete "applicant," and insert "applicant".
    Page 9, line 4, delete ", if the applicant".
    Page 9, line 5, delete "receives a financial incentive,".
    Page 9, line 7, delete "The incentive".
    Page 9, delete lines 8 through 11.
    Page 9, delete lines 26 through 31, begin a new paragraph and insert:
SOURCE: IC 5-28-28-1; (13)AM016201.3. -->     "SECTION 3. IC 5-28-28-1, AS ADDED BY P.L.222-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. This chapter applies to grants, loans, and tax credits:
        (1) applied for; and
        (2) awarded;
after June 30, 2007. 2005.
SOURCE: IC 5-28-28-4; (13)AM016201.4. -->     SECTION 4. IC 5-28-28-4, AS AMENDED BY P.L.133-2012, SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. As used in this chapter, "tax credit" means a state tax liability credit under any of the following:
        (1) IC 6-3.1-7.
        (2) IC 6-3.1-13.
        (3) IC 6-3.1-13.5 (until January 1, 2020).
        (4) IC 6-3.1-26.
        (5) IC 6-3.1-27.
        (6) IC 6-3.1-28.
        (7) IC 6-3.1-30.
         (8) IC 6-3.1-31.9.
        (9) IC 6-3.1-33.

SOURCE: IC 5-28-28-5; (13)AM016201.5. -->     SECTION 5. IC 5-28-28-5, AS ADDED BY P.L.222-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) Beginning February 1, 2008, the corporation shall:
        (1) submit an economic incentives and compliance report to:
            (A) the governor; and
            (B) the legislative council in an electronic format under IC 5-14-6; and
        (2) publish the report on the corporation's Internet web site;
on the schedule specified in subsection (b).
    (b) Before August 2, 2009, the corporation shall submit and publish before February 1 and August 1 of each year an incentives and compliance report that covers the six (6) month period that ends one (1) month before the report is due. Before August 1, 2013, the corporation shall submit and publish an incentives and compliance report that provides updated information for active incentive agreements approved and awarded after January 1, 2005, through June, 30, 2013. After August 1, 2009, December 31, 2013, the corporation shall submit and publish before August February 1 of each year an incentives and compliance report that covers the twelve

(12) month period that ends one (1) month before the report is due. provides updated information for active incentive agreements approved and awarded after January 1, 2005, through the immediately preceding calendar year.".

SOURCE: Page 9, line 38; (13)AM016201.9. -->     Page 9, line 38, after "credits" insert ",".
    Page 9, line 38, strike "approved or" and insert " loans, and grants contractually".
    Page 9, line 39, strike "Loans made by the corporation." and insert " Investments made by the recipients of the tax credits, loans, and grants.".
    Page 9, line 40, strike "Grants made by the corporation." and insert " Actual jobs created and the number of jobs expected through the reporting year, as reviewed by an independent auditing firm chosen by the corporation.".
    
Page 9, between lines 40 and 41, begin a new line double block indented and insert:
            
" (D) Recaptured incentives for the reporting year and the total number of recipients.
            (E) Tax credits claimed for the reporting year, as reported by the department of state revenue to the corporation by December 31 of each year.
".
    Page 10, line 1, after "name" insert ",".
    Page 10, line 1, strike "and address" and insert " county, and municipality (if any)".
    Page 10, line 2, strike "the tax credit, loan, or grant." and insert " tax credits certified to each recipient, and the amount of grants and loans actually paid out, during the term of the agreement.".
    Page 10, line 4, strike "Representations of the following made by the recipient at".
    Page 10, line 5, strike "the time of application for the tax credit, loan, or grant".
    Page 10, line 5, delete "and the".
    Page 10, delete lines 6 through 7 and insert " The performance goals for the reporting year, including the following:".
    Page 10, line 8, after "trained" insert ".".
    Page 10, delete line 9.
    Page 10, line 10, delete "The" and insert " If a financial investment by a recipient was a condition for providing an incentive, the".
    Page 10, line 12, delete "job creation".
    Page 10, line 13, delete "(iii)".
    Page 10, strike lines 13 through 17.
    Page 10, line 18, delete "(iv)".
    Page 10, strike lines 18 through 21 and insert:
            " (E) Certification by the corporation that each recipient is complying with the terms of the incentive agreement.
SOURCE: IC 5-28-28-7; (13)AM016201.7. -->     SECTION 7. IC 5-28-28-7, AS AMENDED BY P.L.110-2010, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) If, in the course of compiling information to complete a report required by section 5 of this chapter or upon the receipt of any other information concerning noncompliance with the terms and conditions of an incentive granted by the corporation, the corporation determines that a recipient of an incentive awarded by the corporation has not complied with the representations that the recipient made in obtaining the incentive, terms of the incentive agreement, the corporation shall take the actions required under subsections (b) and (d).
    (b) If the incentive is a grant or loan awarded before April 1, 2010, the corporation shall determine:
        (1) whether there was good cause for the noncompliance; and
        (2) whether the recipient is in default.
If in the judgment of the corporation there is not good cause for any noncompliance discovered under subsection (a), the corporation may seek a refund or arrange other methods of reclaiming the grant or loan from the recipient. If the corporation does seek a refund or otherwise reclaims a grant or loan from the recipient under this section, the amount of the refund or reclaimed part must be in proportion to the degree of default by the recipient as determined by the corporation.
    (c) Subsection (b) does not apply to a recipient of a grant or loan if:
        (1) the grant or loan has been disbursed on a pro rata basis; and
        (2) in the judgment of the corporation, the recipient's performance in relation to the recipient's performance goals equals or exceeds the ratio of the amount of the recipient's actual benefit from the grant or loan to the total amount of the grant or loan originally contemplated in the grant or loan award.
    (d) If the incentive granted by the corporation was awarded after March 31, 2010, the corporation shall seek a refund or arrange other methods of reclaiming the value of the incentive granted by the corporation from the recipient. The amount of the refund or reclaimed
part must be in proportion to the degree of default by the recipient as determined by the corporation.".
    Renumber all SECTIONS consecutively.
    (Reference is to SB 162 as introduced.)

and when so amended that said bill do pass .

Committee Vote: Yeas 12, Nays 0.

____________________________________

Senator Hershman, Chairperson


AM 016201/DI 58    2013