March 18, 2003
ENGROSSED
HOUSE BILL No. 1789
_____
DIGEST OF HB 1789
(Updated March 17, 2003 11:55 AM - DI 75)
Citations Affected: IC 4-4; IC 4-12; IC 6-1.1; IC 6-2.5; IC 6-3.1;
IC 20-1; IC 22-4; IC 22-4.1; noncode.
Synopsis: Indiana technology talent fund. Creates the state technology
advancement and retention (STAR) account to advance technology and
retain graduates in Indiana. Provides for a tax on the sale of tangible
personal property by vending machine operators and uses the proceeds
of the tax to fund STAR beginning in 2004. Requires a vending
machine owner to place an identification sticker on the face of a
vending machine. Provides that, if an owner intentionally fails to
display an identification sticker on a vending machine, the department
of state revenue ("department") may: (1) seize and confiscate the
vending machine; and (2) fine the owner not less than $1,000 and not
more than $2,000. Requires vending machine operators and owners to
register with the department. Programs involved include school to work
tax credit, internship tax credit, funding for the statewide partnership
fund, technology grants, minority training grants, apprenticeship grants,
back home in Indiana grants, scientific instrument project, clean
manufacturing income tax credit, clean coal technology research
center, grants for the smart Indiana school smart partnership; and
funding for the operations of the minority epidemiology resource center
within the Indiana minority health coalition.
Effective: January 1, 2003 (retroactive); upon passage; July 1, 2003.
Hasler
, Austin
, Murphy
, Dvorak
(SENATE SPONSORS _ FORD, WEATHERWAX, BRODEN, MRVAN)
January 21, 2003, read first time and referred to Committee on Technology, Research and
Development.
February 17, 2003, amended, reported _ Do Pass. Recommitted to Committee on Ways
and Means.
February 26, 2003, amended, reported _ Do Pass.
March 3, 2003, read second time, ordered engrossed. Engrossed.
March 4, 2003, read third time, passed. Yeas 67, nays 27.
SENATE ACTION
March 10, 2003, read first time and referred to Committee on Economic Development and
Technology.
March 17, 2003, reported favorably _ Do Pass; reassigned to Committee on Finance.
March 18, 2003
First Regular Session 113th General Assembly (2003)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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NEW will appear in that style type in the introductory clause of each SECTION that adds
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Conflict reconciliation: Text in a statute in
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between statutes enacted by the 2002 Regular or Special Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1789
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-4-30-8; (03)EH1789.1.1. -->
SECTION 1. IC 4-4-30-8, AS ADDED BY P.L.159-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 8. (a) The coal technology research fund is
established to provide money for the center for coal technology
research and for the director to carry out the duties specified under this
chapter. The budget agency shall administer the fund.
(b) The fund consists of the following:
(1) Money appropriated or otherwise designated by the general
assembly.
(2) Gifts, grants, and bequests.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as the treasurer may invest other public funds.
(d) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
SOURCE: IC 4-12-10-3; (03)EH1789.1.2. -->
SECTION 2. IC 4-12-10-3, AS ADDED BY P.L.26-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 3. (a) The Indiana economic development
partnership fund is established to provide grants for economic
development initiatives that support the following:
(1) The establishment of regional technology and
entrepreneurship centers for the creation of high technology
companies to support access to technology for existing
businesses and for the support of workforce development.
(2) The providing of leadership and technical support necessary
for the centers' start-up operations and long term success.
(3) The expansion of the Purdue Technical Assistance Program
to other higher education institutions in ten (10) geographic
regions of Indiana.
(4) The creation of a rural/community economic development
regional outreach program by Purdue University.
(5) The expansion of workforce development for high technology
business development through the centers.
(b) The fund shall be administered by the budget agency. The fund
consists of appropriations from the general assembly and gifts and
grants to the fund.
(c) In addition to other appropriations, the fund shall receive
twenty-five percent (25%) of the balance in the state technology
advancement and retention account established by IC 4-12-11-1.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(d) (e) The money in the fund at the end of a state fiscal year does
not revert to the state general fund but remains in the fund to be used
exclusively for the purposes of this chapter.
(f) Money deposited in the fund under subsection (c) shall be
distributed as follows:
(1) Fifty percent (50%) for grants under subsection (a)(1).
(2) Ten percent (10%) for grants under subsection (a)(2).
(3) Twenty percent (20%) for grants under subsection (a)(3).
(4) Ten percent (10%) for grants under subsection (a)(4).
(5) Ten percent (10%) for grants under subsection (a)(5).
SOURCE: IC 4-12-10-4; (03)EH1789.1.3. -->
SECTION 3. IC 4-12-10-4, AS ADDED BY P.L.26-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 4. (a) The budget agency, after review by the
budget committee, shall
enter into an agreement with the
department of commerce to do the following:
(1) Review, prioritize, and approve or disapprove proposals for
centers.
(2) Create detailed application procedures and selection criteria
for center proposals. These criteria may include the following:
(A) Geographical proximity to and partnership agreement with
an Indiana public or private university.
(B) Proposed local contributions to the center.
(C) Minimum standards and features for the physical facilities
of a center, including telecommunications infrastructure.
(D) The minimum support services, both technical and
financial, that must be provided by the centers.
(E) Guidelines for selecting entities that may participate in the
center.
(3) Develop performance measures and reporting requirements
for the centers.
(4) Monitor the effectiveness of each center and report its findings
to the governor,
the budget agency, and the budget committee
before October 1 of each even-numbered year.
(5) Contract with Purdue University for any staff support
necessary for the budget agency to carry out this chapter.
(6) (5) Approve a regional technology center only if the center
agrees to do all of the following:
(A) Nurture the development and expansion of high
technology ventures that have the potential to become high
growth businesses.
(B) Increase high technology employment in Indiana.
(C) Stimulate the flow of new venture capital necessary to
support the growth of high technology businesses in Indiana.
(D) Expand workforce education and training for highly
skilled, high technology jobs.
(E) Affiliate with an Indiana public or private university and
be located in close proximity to a university campus.
(F) Be a party to a written agreement among:
(i) the affiliated university;
(ii) the city or town in which the proposed center is located,
or the county in which the proposed center is located if the
center is not located in a city or town;
(iii) Purdue University, for technical and personnel training
support; and
(iv) any other affiliated entities;
that outlines the responsibilities of each party.
(G) Establish a debt free physical structure designed to
accommodate research and technology ventures.
(H) Provide support services, including business planning,
management recruitment, legal services, securing of seed
capital marketing, and mentor identification.
(I) Establish a commitment of local resources that is at least
equal to the money provided from the fund for the physical
facilities of the center.
(b) The budget agency department of commerce may not approve
more than five (5) regional technology centers in any biennium.
(c) The budget agency shall contract with Purdue University:
(1) for any support staff necessary for the budget agency to
provide grants under section 3(a)(3) and 3(a)(4) of this
chapter; and
(2) to provide services under section 7 of this chapter.
SOURCE: IC 4-12-10-6; (03)EH1789.1.4. -->
SECTION 4. IC 4-12-10-6, AS ADDED BY P.L.26-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 6. (a) If a center is approved by the budget agency,
department of commerce, the budget agency shall allocate from
available appropriations the money authorized to:
(1) subsidize construction or rehabilitation of the physical
facilities; and
(2) cover operating costs, not to exceed two hundred fifty
thousand dollars ($250,000) each year, until the center is
self-sustaining or has identified another source of operating
money or the amount appropriated for this purpose is exhausted.
(b) Operating costs may not be supported by the fund for any center
for more than four (4) years.
SOURCE: IC 4-12-11; (03)EH1789.1.5. -->
SECTION 5. IC 4-12-11 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]: Chapter 11. State Technology Advancement and
Retention (STAR) Account
Sec. 1. The state technology advancement and retention (STAR)
account is established within the state general fund. The purpose
of the account is to provide funding for programs within Indiana
that:
(1) are designed to advance and retain technology related
enterprises within Indiana; and
(2) are designed to train and retain students with an emphasis
on technology.
Sec. 2. The STAR account shall be administered by the budget
agency.
Sec. 3. The account consists of the money designated under
IC 6-2.5-7.5-11 and transfers made in compliance with section 6 of
this chapter.
Sec. 4. The treasurer of state shall invest the money in the
account not currently needed to meet the obligations of the account
in the same manner as other public funds may be invested.
Sec. 5. Money in the account at the end of a state fiscal year does
not revert to the state general fund but remains in the account to
be used for the purposes of this chapter.
Sec. 6. Money in the account is annually dedicated in the
following percentages:
(1) Twenty percent (20%) to fund the certified school to
career program payroll credit under IC 6-3.1-27 and
IC 22-4.1-8.
(2) Seven percent (7%) to fund the certified internship
program payroll credit under 6-3.1-25 and IC 22-4.1-7.
(3) Twenty-five percent (25%) to fund the Indiana economic
development partnership fund under IC 4-12-10.
(4) Seven percent (7%) for minority training program grants
under IC 22-4-18.1-11.
(5) Six percent (6%) for technology apprenticeship grants
under IC 20-1-18.7.
(6) Ten percent (10%) for the back home in Indiana program
under IC 22-4-18.1-12.
(7) Five percent (5%) for the Indiana schools smart
partnership under IC 22-4.1-9.
(8) Five percent (5%) to fund the scientific instrument project
within the department of education.
(9) Three percent (3%) to fund the clean manufacturing
income tax credit under IC 6-3.1-28.
(10) Two percent (2%) to fund the coal technology research
fund under IC 4-4-30-8.
(11) Ten percent (10%) to fund the operational expenses of
the minority epidemiology resource center within the Indiana
minority health coalition. Money dedicated under this
subdivision must be used to do the following:
(A) Research and provide health data concerning minority
populations in Indiana.
(B) Provide technical assistance to the state department of
health and the office of the secretary of family and social
services to:
(i) address the elimination of health disparities among
minorities; and
(ii) evaluate health programs focused on minorities.
Sec. 7. Expenses for:
(1) administering the account; and
(2) administering any of the programs funded from the
account;
may be taken from the account but may not exceed two percent
(2%). Administrative expenses taken from the account must be
approved by the budget agency.
SOURCE: IC 6-1.1-3-8; (03)EH1789.1.6. -->
SECTION 6. IC 6-1.1-3-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. (a) The owner of a
vending machine shall place on the face of the machine an
identificatiion identification device which that:
(1) is at least two (2) inches by three (3) inches; and
(2) accurately reveals the following information:
(A) The owner's name and address. and he
(B) The following information about the retail merchant
who is liable for collecting state gross retail tax on the sale
of tangible personal property through the vending
machine:
(i) Name.
(ii) An identifier designated by the department that is
unique to the retail merchant. An identifier under this
item includes a universal product code (UPC).
(iii) Telephone number.
(iv) All the retail merchant's certificate numbers.
(b) The owner shall include the vending machine in his the
owner's annual personal property return.
(b) (c) If an owner intentionally fails to display an identification
device on a vending machine under this section, the department of
state revenue may do either or both of the following:
(1) Seize and confiscate the vending machine.
(2) Impose a civil penalty of not less than one thousand dollars
($1,000) and not more than two thousand dollars ($2,000).
Each vending machine on which an owner intentionally fails to
display an identification device constitutes a separate offense for
purposes of this subsection.
(d) For purposes of this section, the term "vending machine" means
a machine which dispenses goods, wares, or merchandise when a coin
is deposited in it and which by automatic action can physically deliver
goods, wares, or merchandise to the depositor of the coin. has the
meaning set forth in IC 6-2.5-7.5-4.
SOURCE: IC 6-2.5-6-7; (03)EH1789.1.7. -->
SECTION 7. IC 6-2.5-6-7, AS AMENDED BY P.L.192-2002(ss),
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]: Sec. 7. Except as otherwise
provided in IC 6-2.5-7, IC 6-2.5-7.5, or in this chapter, a retail
merchant shall pay to the department, for a particular reporting period,
an amount equal to the product of:
(1) six percent (6%); multiplied by
(2) the retail merchant's total gross retail income from taxable
transactions made during the reporting period.
The amount determined under this section is the retail merchant's state
gross retail and use tax liability regardless of the amount of tax he
actually collects.
SOURCE: IC 6-2.5-6-10; (03)EH1789.1.8. -->
SECTION 8. IC 6-2.5-6-10, AS AMENDED BY P.L.192-2002(ss),
SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 10. (a) In order to compensate retail merchants for
collecting and timely remitting the state gross retail tax and the state
use tax, every retail merchant, except a retail merchant referred to in
subsection (c), is entitled to deduct and retain from the amount of those
taxes otherwise required to be remitted under IC 6-2.5-7-5,
IC 6-2.5-7.5-7, or under this chapter, if timely remitted, a retail
merchant's collection allowance.
(b) The allowance equals eighty-three hundredths percent (0.83%)
of the retail merchant's state gross retail and use tax liability accrued
during a reporting period.
(c) A retail merchant described in IC 6-2.5-4-5 or IC 6-2.5-4-6 is not
entitled to the allowance provided by this section.
SOURCE: IC 6-2.5-7.5; (03)EH1789.1.9. -->
SECTION 9. IC 6-2.5-7.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]:
Chapter 7.5. Collection and Remittance of State Gross Retail
Tax on Vending Machine Items
Sec. 1. This chapter applies only to retail transactions involving
tangible personal property, other than:
(1) cigarettes (as defined in IC 6-7-1-2); or
(2) cigars and other tobacco products (as defined in
IC 6-7-2-5);
acquired for resale from a vending machine or sold from a vending
machine.
Sec. 2. As used in this chapter, "gross receipts" means the
product of:
(1) the net invoice price paid during a reporting period by a
vending machine operator; multiplied by
(2) one hundred fifty percent (150%).
Sec. 3. As used in this chapter, "net invoice price" means the
difference between:
(1) the cost, including freight, of tangible personal property
acquired for resale from a vending machine or sold from a
vending machine; minus
(2) any timely payment discount.
Sec. 4. As used in this chapter, "vending machine" means a
mechanical or electronic device or a receptacle designed to:
(1) receive a coin or currency; and
(2) dispense tangible personal property in return for the
insertion or deposit of the coin or currency.
Sec. 5. As used in this chapter, "vending machine operator"
means a retail merchant who is liable for collecting state gross
retail tax on the sale of tangible personal property through a
vending machine.
Sec. 6. This chapter applies to taxable years beginning after
December 31, 2003.
Sec. 7. A vending machine operator shall pay to the department
the state gross retail tax collectible from retail transactions
involving the sale of tangible personal property through a vending
machine.
Sec. 8. The amount that a vending machine operator shall pay
to the department for a particular reporting period is the amount
equal to the product of:
(1) six percent (6%); multiplied by
(2) the gross receipts of the vending machine operator for the
reporting period.
Sec. 9. The amount determined under section 8 of this chapter
is a vending machine operator's state gross retail tax liability
regardless of the amount of state gross retail tax the vending
machine operator actually collects.
Sec. 10. No allowance for spoiled, damaged, or otherwise unsold
tangible personal property shall be allowed against a vending
machine operator's state gross retail tax liability, other than for
returns by the vending machine operator to the distributor that are
evidenced by an invoice credit or other written indication that the
distributor has received the tangible personal property and
credited or refunded the amount of the gross receipts paid or
payable for the tangible personal property.
Sec. 11. The department shall account for all state gross retail
taxes that are prepaid under this chapter as follows:
(1) Beginning July 1, 2004, the department shall designate an
amount equal to the lesser of twenty million dollars
($20,000,000) or the difference between:
(A) the amount paid during a reporting period under this
chapter; minus
(B) the product of:
(i) the gross retail income received by a vending machine
operator from retail transactions involving the sale of
tangible personal property through a vending machine
during the same reporting period in the calendar year
beginning January 1, 2002, and ending December 31,
2002, multiplied by six percent (6%); multiplied by
(ii) the most current inflation adjustment factor, as
determined by the Consumer Price Index for all Urban
Consumers, as published by the United States Bureau of
Labor Statistics;
to the state technology advancement and retention account
under IC 4-12-11-1.
(2) The department shall deposit the remainder according to
IC 6-2.5-10-1.
Sec. 12. A vending machine operator shall file a return for each
reporting period and pay the state gross retail tax liability for that
reporting period in the manner and on a form prescribed by the
department.
Sec. 13. A distributor that knowingly sells or otherwise
distributes tangible personal property to one (1) or more vending
machine operators during a reporting period shall submit a report
concerning the transactions for the period to the department in the
manner and on a form prescribed by the department. A report
under this section must include the following:
(1) The total gross retail income received from each vending
machine operator during the reporting period.
(2) The retail merchant certificate number of each vending
machine operator to whom the distributor sold or otherwise
distributed tangible person property during the reporting
period.
(3) Any other information the department reasonably
requires.
Sec. 14. The department may adopt rules under IC 4-22-2 to
implement this chapter.
SOURCE: IC 6-2.5-8-12; (03)EH1789.1.10. -->
SECTION 10. IC 6-2.5-8-12 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 12. (a) This section applies to a person that
owns or operates a vending machine (as defined in IC 6-2.5-7.5-4).
(b) Not later than August 15 of each year, each person shall
submit the following information to the department on a form
prescribed by the department:
(1) The person's name.
(2) The person's business address.
(3) The person's business telephone number.
(4) All Indiana addresses at which the person maintains
business offices.
(5) If the person is a corporation or other business entity, the
name of an officer or director on whom legal process may be
served.
(6) An approximate number of the person's vending machines
that are owned or operated in Indiana.
(7) The name of all retail merchants who are liable for
collecting state gross retail tax on the sale of tangible personal
property through the person's vending machines.
(8) Any other information the department determines is
necessary.
SOURCE: IC 6-3.1-25; (03)EH1789.1.11. -->
SECTION 11. IC 6-3.1-25 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]:
Chapter 25. Certified Internship Program Payroll Credit
Sec. 1. As used in this chapter, "certified internship program"
has the meaning set forth in IC 22-4.1-7-1.
Sec. 2. As used in this chapter, "department" has the meaning
set forth in IC 6-3-1-4.
Sec. 3. As used in this chapter, "employer" means any
individual or type of organization, including the state and all its
political subdivisions, that has in its employ at least one (1)
individual, not including any students employed through a certified
internship program under IC 22-4.1-7.
Sec. 4. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
Sec. 5. As used in this chapter, "payroll expenditures" means
the wages actually paid by an employer to a student participating
in a certified internship program under IC 22-4.1-7.
Sec. 6. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (adjusted gross income tax);
(2) IC 6-5.5 (financial institutions tax); and
(3) IC 27-1-18-2 (insurance premiums tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter.
Sec. 7. As used in this chapter, "student" has the meaning set
forth in IC 22-4.1-7-4.
Sec. 8. As used in this chapter, "taxpayer" means an employer
that employs at least one (1) student through a certified internship
program under IC 22-4.1-7.
Sec. 9. (a) This chapter applies to taxable years beginning after
December 31, 2004.
(b) A taxpayer is entitled to a credit against the taxpayer's state
tax liability for the payroll expenditures paid by the taxpayer in the
taxable year. To be eligible for the credit provided by this section,
a taxpayer's payroll expenditures must have been made to a
student participating in an internship program that was certified
under IC 22-4.1-7 not later than the last day of the year
immediately preceding the taxable year for which the taxpayer
claims the credit.
(c) Subject to the limitations under section 13 of this chapter,
the amount of the credit is equal to the total of the taxpayer's
payroll expenditures that are eligible for the credit under
subsection (b) in the taxable year multiplied by twenty percent
(20%).
Sec. 10. (a) If the amount determined under section 9(c) of this
chapter for a taxpayer in a taxable year exceeds the taxpayer's
state tax liability for that taxable year, the taxpayer may carry the
excess over to the following taxable years. The amount of the credit
carryover from a taxable year shall be reduced to the extent that
the carryover is used by the taxpayer to obtain a credit under this
chapter for any subsequent taxable year. A taxpayer is not entitled
to a carryback.
(b) A taxpayer is entitled to a refund of any unused credit.
Sec. 11. If a pass through entity does not have state income tax
liability against which the tax credit may be applied, a shareholder,
partner, or member of the pass through entity is entitled to a tax
credit equal to:
(1) the tax credit determined for the pass through entity for
the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is
entitled.
Sec. 12. To receive the credit provided by this chapter, a
taxpayer must claim the credit on the taxpayer's state tax return
in the manner prescribed by the department. The taxpayer must
submit to the department proof of payment of the payroll
expenditures and all information that the department determines
is necessary for the calculation of the credit provided by this
chapter.
Sec. 13. The department shall record the time of filing of each
application for allowance of a credit under section 12 of this
chapter and shall approve the applications if the applicant
otherwise qualifies for a tax credit under this chapter in the
chronological order in which the applications are filed. However,
the department may not approve any application in a state fiscal
year if the total amount of allowable credits approved in the fiscal
year exceeds seven percent (7%) of the amount in the state
technology advancement and retention account established in
IC 4-12-11-1. However, if an applicant for whom a credit has been
approved fails to file the statement of proof of payment required
under section 12 of this chapter, an amount equal to the credit
previously allowed or set aside for the applicant may be allowed to
any subsequent applicant in the year. In addition, the department
may, if the applicant requests, approve a credit application, in
whole or in part, with respect to the next succeeding state fiscal
year.
SOURCE: IC 6-3.1-27; (03)EH1789.1.12. -->
SECTION 12. IC 6-3.1-27 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]:
Chapter 27. Certified School to Career Program Payroll Credit
Sec. 1. As used in this chapter, "certified program" has the
meaning set forth in IC 22-4.1-8-1.
Sec. 2. As used in this chapter, "participant" has the meaning
set forth in IC 22-4.1-8-3.
Sec. 3. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
Sec. 4. As used in this chapter, "payroll expenditures" means
the base wages actually paid by an employer to a participant in a
certified program plus the amount held in trust to be applied
toward the participant's postsecondary education.
Sec. 5. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (adjusted gross income tax);
(2) IC 6-5.5 (financial institutions tax); and
(3) IC 27-1-18-2 (insurance premiums tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter.
Sec. 6. (a) A taxpayer is entitled to a credit against the
taxpayer's state tax liability for the payroll expenditures (as
defined in section 4 of this chapter) made by the taxpayer in a state
fiscal year.
(b) Subject to the limitations under subsection (c) and section 10
of this chapter, the amount of the credit is equal to the taxpayer's
payroll expenditures in the state fiscal year for a participant
multiplied by twenty percent (20%).
(c) The credit is limited to the first four hundred (400) hours of
payroll expenditures per participant for each state fiscal year the
participant is in the certified program, not to exceed three (3) years
per participant.
Sec. 7. (a) If the amount determined under section 6(b) of this
chapter for a taxpayer in a state fiscal year exceeds the taxpayer's
state tax liability for the taxable year for which the taxpayer files
a return claiming the credit allowed under this chapter, the
taxpayer may carry the excess over to the following taxable years.
The amount of the credit carryover from a taxable year shall be
reduced to the extent that the carryover is used by the taxpayer to
obtain a credit under this chapter for any subsequent taxable year.
A taxpayer is not entitled to a carryback.
(b) A taxpayer is not entitled to a refund of any unused credit.
Sec. 8. If a pass through entity does not have state income tax
liability against which the tax credit may be applied, a shareholder,
member, or partner of the pass through entity is entitled to a tax
credit equal to:
(1) the tax credit determined for the pass through entity for
the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, member, or partner is
entitled.
Sec. 9. To receive a credit under this chapter, a taxpayer must
submit an application to the department before September 1. The
application must contain proof of payment of the payroll
expenditures in the preceding state fiscal year and all information
that the department determines is necessary for the calculation of
the credit provided by this chapter.
Sec. 10. (a) The department shall record the time of filing of
each application for allowance of a credit under section 9 of this
chapter and shall approve the applications if the applicant
otherwise qualifies for a tax credit under this chapter in the
chronological order in which the applications are filed. The
department shall notify each applicant before December 1 of the
department's approval or disapproval of the applicant's
application.
(b) When the total credits approved under this section equal the
maximum amount allowable in a state fiscal year, no application
filed later for that same fiscal year shall be approved. However, if
an applicant for whom a credit has been approved fails to claim a
credit on the taxpayer's tax return as required under section 11 of
this chapter, an amount equal to the credit previously allowed or
set aside for the applicant may be allowed to any subsequent
applicant in the year.
Sec. 11. A taxpayer whose application is approved under section
10 of this chapter must claim the credit on the taxpayer's annual
state tax return in the manner prescribed by the department.
Sec. 12. The credit provided by this chapter applies to payroll
expenditures made in a state fiscal year beginning after June 30,
2004.
Sec. 13. The total amount of tax credits approved under this
chapter in a state fiscal year may not exceed twenty percent (20%)
of the amount in the state technology advancement and retention
account established by IC 4-12-11-1.
SOURCE: IC 6-3.1-28; (03)EH1789.1.13. -->
SECTION 13. IC 6-3.1-28 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]:
Chapter 28. Clean Manufacturing Income Tax Credit
Sec. 1. As used in this chapter, "board" refers to the clean
manufacturing income tax credit board established by section 13
of this chapter.
Sec. 2. As used in this chapter, "clean manufacturing" has the
meaning set forth in IC 13-11-2-27.6.
Sec. 3. As used in this chapter, "clean manufacturing
investment" means an expenditure for any of the following:
(1) Production process redesign (as defined in
IC 13-27.5-3-2(2)(C)).
(2) Operational improvement (as defined in
IC 13-27.5-3-2(2)(D)).
Sec. 4. As used in this chapter, "environmental waste" has the
meaning set forth in IC 13-11-2-72.
Sec. 5. As used in this chapter, "institute" refers to the Indiana
clean manufacturing technology and safe materials institute
established under IC 13-27.5-2.
Sec. 6. As used in this chapter, "manufacturing facility" means
a facility of a manufacturer (as defined in IC 13-11-2-126(b)).
Sec. 7. As used in this chapter, "material substitution" means:
(1) an input change (as defined in IC 13-27.5-3-2(2)(A)); or
(2) a product reformulation (as defined in
IC 13-27.5-3-2(2)(B)).
Sec. 8. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
Sec. 9. As used in this chapter, "SIC manual" has the meaning
set forth in IC 6-3.1-10-2.5.
Sec. 10. As used in this chapter, "state tax liability" means the
taxpayer's total tax liability that is incurred under IC 6-3-1
through IC 6-3-7 (the adjusted gross income tax) as computed after
the application of the credits that under IC 6-3.1-1-2 are to be
applied before the credit provided by this chapter.
Sec. 11. As used in this chapter, "taxpayer" means any
individual, corporation, limited liability company, partnership, or
other entity that:
(1) has any state tax liability; and
(2) operates at least one (1) manufacturing facility in Indiana
under standard industrial classification codes 20 through 39
in the SIC manual.
Sec. 12. (a) As used in this chapter, "toxic material" has the
meaning set forth in IC 13-11-2-233.
(b) For purposes of this chapter, the list of toxic materials may
be updated periodically by the institute in consultation with the
commissioner of the department of environmental management
based on information provided by:
(1) the United States Environmental Protection Agency;
(2) a professional industrial hygiene association; or
(3) the United States Occupational Safety and Health
Administration.
Sec. 13. (a) The clean manufacturing income tax credit board is
established. The board consists of the following six (6) members:
(1) The director of the institute or the director's designee.
(2) The commissioner of the department of environmental
management or the commissioner's designee.
(3) The director of the department of commerce or the
director's designee.
(4) The director of the budget agency or the director's
designee.
(5) The commissioner of the department of state revenue or
the commissioner's designee.
(6) The chairperson of the clean manufacturing technology
board or the chairperson's designee.
(b) The director of the department of commerce or the
director's designee shall serve as chairperson of the board. Four (4)
members of the board constitute a quorum to transact and vote on
the business of the board. The board may take official action upon
the affirmative vote of a majority of the members present and
voting.
(c) The institute shall assist the board in carrying out the
board's duties under this chapter.
(d) Each member of the board is entitled to reimbursement for
traveling expenses as provided in IC 4-13-1-4 and other expenses
actually incurred in connection with the member's duties as
provided in the state policies and procedures established by the
Indiana department of administration and approved by the budget
agency.
Sec. 14. The board may make credit awards under this chapter
to foster clean manufacturing at manufacturing facilities in
Indiana.
Sec. 15. (a) Subject to the conditions set forth in this chapter, a
taxpayer is entitled to a credit against the taxpayer's state tax
liability in a taxable year beginning after December 31, 2004, if the
taxpayer is awarded a credit by the board under this chapter for
the taxable year in which the institute verifies either or both of the
following:
(1) A qualified material substitution expense.
(2) A qualified clean manufacturing investment.
(b) Subject to sections 20(5) and 21(8) of this chapter, a credit
awarded to a taxpayer under subsection (a) is limited to one (1)
qualified material substitution expense and one (1) qualified clean
manufacturing investment for each taxable year.
(c) The taxpayer must certify that a material substitution
expense or a clean manufacturing investment for which a credit is
awarded to a taxpayer under subsection (a) is:
(1) initiated voluntarily by the taxpayer; and
(2) not the result of an enforcement action, a negotiated
settlement, or an order of a federal or state agency or court.
Sec. 16. (a) The maximum amount of the material substitution
expense credit to which a taxpayer is entitled in a taxable year is
equal to:
(1) the certified additional cost of purchasing a qualified
material that is substituted for a toxic material; multiplied by
(2) thirty percent (30%).
(b) The maximum amount of the clean manufacturing
investment credit to which a taxpayer is entitled in a taxable year
is equal to the amount determined under STEP THREE of the
following formula:
STEP ONE: Determine the certified cost of the qualified clean
manufacturing investment.
STEP TWO: Multiply the STEP ONE amount by thirty
percent (30%).
STEP THREE: Multiply the STEP TWO result by one (1) of
the following, as specified by the taxpayer:
(A) The certified percentage by which the use of a toxic
material is reduced by means of the clean manufacturing
investment.
(B) The certified percentage by which the generation of an
environmental waste is reduced by means of the clean
manufacturing investment.
The taxpayer is eligible for the credit in the taxable year in which
the production process redesign or operational improvement that
forms the basis of the clean manufacturing investment first
produces verifiable reductions in the use of toxic materials or the
generation of environmental waste.
Sec. 17. (a) Except as provided in subsection (b), a taxpayer is
not entitled to carry forward, carry back, or a refund of an unused
credit.
(b) If the amount of a clean manufacturing investment credit or
a material substitution expense credit for a taxpayer in a taxable
year exceeds the taxpayer's state tax liability for that taxable year,
the taxpayer may carry the excess over to not more than two (2)
taxable years. The amount of the credit carryover from a taxable
year shall be reduced to the extent that the carryover is used by the
taxpayer to obtain a credit under this chapter for a subsequent
taxable year.
Sec. 18. If a pass through entity does not have state income tax
liability against which the tax credit may be applied, a shareholder
or partner of the pass through entity is entitled to a tax credit equal
to:
(1) the tax credit determined for the pass through entity for
the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder or partner is entitled.
Sec. 19. To be entitled to a credit under this chapter, a taxpayer
must do the following:
(1) Make an expenditure for a qualifying activity.
(2) Request that the board certify:
(A) the eligibility of the taxpayer for the credit;
(B) a description of the activity or expense that is eligible
for the credit;
(C) the amount of the expenditure that is eligible for the
credit; and
(D) for a clean manufacturing investment credit, the
percentage of:
(i) environmental waste; or
(ii) a toxic material;
reduced by means of the clean manufacturing investment;
on forms and in the manner provided by this chapter.
(3) Claim the credit under section 22 of this chapter.
(4) Be allotted a share of the maximum statewide credit under
section 24 of this chapter.
(5) Pay the institute an administrative fee established by the
institute.
Sec. 20. The board shall certify that a taxpayer's expenditure is
a qualified material substitution expense if the board determines
that:
(1) before making the material substitution, the taxpayer
obtained a verification from the institute that:
(A) the material substitution is nontoxic or less toxic than
the toxic material;
(B) the expenditure will reduce the use of the toxic material
based on a measurement of the toxicity and amount of the
toxic material reduced per unit of production under
IC 13-27.5-2-5(c)(4) and IC 13-27.5-2-7 and in conformity
with the guidelines established by the institute; and
(C) estimates the additional cost the taxpayer will incur to
use a substitute material for the toxic material;
(2) the taxpayer made expenditures for the material
substitution;
(3) the expenditures directly result from the additional costs
of substituting a material for a toxic material in a specific
production process at a manufacturing facility;
(4) the taxpayer applies to the board for the credit
certification on a form prescribed by the board in
consultation with the institute;
(5) the taxpayer has not received a certification under this
section for the same material substitution project;
(6) the taxpayer pays the institute the administrative fee
specified under section 19 of this chapter; and
(7) the taxpayer provides all information that the board, in
consultation with the institute, determines is necessary for:
(A) the calculation of the qualified material substitution
expense credit provided by this chapter; and
(B) the determination of whether an expenditure is a
qualified material substitution expense.
Sec. 21. The board shall certify that a taxpayer's expenditure is
a qualified clean manufacturing investment if the board determines
that:
(1) before the taxpayer implements a production process
redesign or an operational improvement, the taxpayer obtains
a verification from the institute that:
(A) the expenditure will reduce the use of a toxic material
or reduce an environmental waste;
(B) estimates the percentage of reduction in the use of a
toxic material or generation of environmental waste by
means of clean manufacturing that will result; and
(C) estimates the cost the taxpayer will incur to implement
production process redesign or operational improvement
that will reduce:
(i) the use of a toxic material; or
(ii) the generation of an environmental waste.
based on a measurement of the toxicity and amount of toxic
material or environmental waste reduced per unit of
production under IC 13-27.5-2-5(c)(4) and IC 13-27.5-2-7 and
in conformity with the guidelines set by the institute;
(2) the taxpayer makes expenditures for the clean
manufacturing investment;
(3) the expenditures directly result from the production
process redesign or operational improvement that:
(A) are directly used in a specific production process at a
manufacturing facility; and
(B) reduce by means of a clean manufacturing investment:
(i) the use of a toxic material; or
(ii) the generation of an environmental waste;
as determined under the guidelines developed by the institute,
which shall be based on a measurement of the toxicity and
amount of toxic material or environmental waste reduced per
unit of production under IC 13-27.5-2-5(c)(4) and
IC 13-27.5-2-7;
(4) the taxpayer applies to the board for the credit
certification on a form prescribed by the board in
consultation with the institute after equipment related to the
production process redesign or operational improvement at
a manufacturing facility has become operational;
(5) the institute verifies the qualified percentage by which the
use of a toxic material or by which the generation of an
environmental waste has been reduced at an industrial facility
by means of a clean manufacturing investment;
(6) the taxpayer pays the institute the administrative fee
specified under section 19 of this chapter;
(7) the taxpayer provides all information that the board, in
consultation with the institute, determines is necessary for:
(A) the calculation of the clean manufacturing investment
credit expense provided by this chapter; and
(B) the determination of whether an expenditure is a
qualified clean manufacturing investment; and
(8) the taxpayer has not received a certification under this
section for the same clean manufacturing investment.
Sec. 22. A taxpayer claiming a credit under this chapter shall
submit to the department of state revenue a copy of the
certification of credit by the board under this chapter for the
taxable year. However, failure to submit a copy of the certification
does not invalidate a claim for credit.
Sec. 23. The board may audit any of the information required
under this chapter to claim a credit.
Sec. 24. (a) The amount of a tax credit for a single taxpayer
allowed under this chapter may not exceed twelve thousand dollars
($12,000) in a taxable year.
(b) The total amount of tax credits approved under this chapter
in a state fiscal year may not exceed three percent (3%) of the
amount in the state technology advancement and retention account
established by IC 4-12-11-1.
(c) The board shall record the time of filing of each application
for allowance of a credit under this chapter and shall approve the
applications, if the applications otherwise qualify for a tax credit
under this chapter, in the chronological order in which the
applications are filed in the state fiscal year.
(d) When the total credits approved under this section equal the
maximum amount allowable in a state fiscal year, an application
thereafter filed for that same fiscal year may not be approved.
However, if an application is received by the board after the
maximum allowable credits have been awarded for the state fiscal
year, the board may review the application for credit in a
subsequent state fiscal year up to the total maximum amount of the
credit allowable. The review of applications for credit in a
subsequent state fiscal year shall be made in the order in which the
applications are received by the institute.
SOURCE: IC 20-1-18.7; (03)EH1789.1.14. -->
SECTION 14. IC 20-1-18.7 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Chapter 18.7. Technology Apprenticeship Grants
Sec. 1. As used in this chapter, "department" refers to the
department of education established by IC 20-1-1.1-2.
Sec. 2. As used in this chapter, "program" refers to the
technology apprenticeship grant program established by section 3
of this chapter.
Sec. 3. The technology apprenticeship grant program is
established. The department, with the advice of the department of
labor established by IC 22-1-1-1, shall administer the program.
Sec. 4. The department, working with the department of labor,
shall develop a grant program to provide grants for
apprenticeships that are designed to develop the skills of
apprentices in the area of technology.
Sec. 5. The department, with the department of labor, shall
develop standards for the issuance of grants to businesses and
unions that are working to enhance the technology skills of
apprentices.
Sec. 6. The program shall be funded with six percent (6%) of the
balance in the state technology advancement and retention account
established by IC 4-12-11-1.
SOURCE: IC 22-4-18.1-3; (03)EH1789.1.15. -->
SECTION 15. IC 22-4-18.1-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. The state human
resource investment council is established pursuant to 29 U.S.C. 1501
et seq. to do the following:
(1) Review the services and use of funds and resources under
applicable federal programs and advise the governor on methods
of coordinating the services and use of funds and resources
consistent with the laws and regulations governing the particular
applicable federal programs.
(2) Advise the governor on:
(A) the development and implementation of state and local
standards and measures; and
(B) the coordination of the standards and measures;
concerning the applicable federal programs.
(3) Perform the duties as set forth in federal law of the particular
advisory bodies for applicable federal programs described in
section 4 of this chapter.
(4) Identify the human investment needs in Indiana and
recommend to the governor goals to meet the investment needs.
(5) Recommend to the governor goals for the development and
coordination of the human resource system in Indiana.
(6) Prepare and recommend to the governor a strategic plan to
accomplish the goals developed under subdivisions (4) and (5).
(7) Monitor the implementation of and evaluate the effectiveness
of the strategic plan described in subdivision (6).
(8) Advise the governor on the coordination of federal, state, and
local education and training programs and on the allocation of
state and federal funds in Indiana to promote effective services,
service delivery, and innovative programs.
(9) Administer the minority training grant program
established by section 11 of this chapter.
(10) Administer the back home in Indiana program
established by section 12 of this chapter.
(11) Any other function assigned to the council by the governor
with regard to the study and evaluation of Indiana's human service
delivery system.
SOURCE: IC 22-4-18.1-4; (03)EH1789.1.16. -->
SECTION 16. IC 22-4-18.1-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. (a) The council shall
serve as the state advisory body required under the following federal
laws:
(1) The Job Training Partnership Act under 29 U.S.C. 1501 et
seq.
(2) The Wagner-Peyser Act under 29 U.S.C. 49 et seq.
(3) The Carl D. Perkins Vocational and Applied Technology Act
under 20 U.S.C. 2301 et seq.
(4) The Adult Education Act under 20 U.S.C. 1201 et seq.
(b) In addition, the council may be designated to serve as the state
advisory body required under any of the following federal laws upon
approval of the particular state agency directed to administer the
particular federal law:
(1) The National and Community Service Act of 1990 under 42
U.S.C. 12501 et seq.
(2) Part F of Title IV of the Social Security Act under 42 U.S.C.
681 et seq.
(3) The employment and training program established under the
Food Stamp Act of 1977 under 7 U.S.C. 2015(d)(4).
(c) The council shall administer the minority training grant
program established by section 11 of this chapter and the back
home in Indiana program established by section 12 of this chapter.
SOURCE: IC 22-4-18.1-7; (03)EH1789.1.17. -->
SECTION 17. IC 22-4-18.1-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. (a) Except as
provided in subsections (b) and (c) and subject to the approval of the
commissioner of workforce development, the state personnel
department, and the budget agency, the council may employ
professional, technical, and clerical personnel necessary to carry out
the duties imposed by this chapter from funds available under
applicable federal and state programs, appropriations by the general
assembly for this purpose, funds in the state technology
advancement and retention account established by IC 4-12-11-1
and any other funds (other than federal funds) available to the council
for this purpose.
(b) Subject to the approval of the commissioner of workforce
development and the budget agency, the council may contract for
services necessary to implement this chapter.
(c) The budget agency shall serve as the fiscal agent for the
distribution of all funds of the council.
SOURCE: IC 22-4-18.1-11; (03)EH1789.1.18. -->
SECTION 18. IC 22-4-18.1-11 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 11. (a) For purposes of this
section, "minority student" means a student who is a member of
one (1) or more of the following groups:
(1) blacks;
(2) American Indians;
(3) Hispanics;
(4) Asian Americans; or
(5) other similar racial groups.
(b) The council shall develop a program to provide grants for
minority training programs for minority students. The grants must
be used as follows:
(1) Thirty-five percent (35%) for programs designed to
enhance training in technology advancement for minority
students.
(2) Sixty-five percent (65%) for generalized training
programs for minority students.
(c) The council shall adopt policies under which recipients may
apply for and receive the grants.
(d) The total amount of grants awarded under this section in a
state fiscal year may not exceed seven percent (7%) of the amount
in the state technology advancement and retention account
established by IC 4-12-11-1.
SOURCE: IC 22-4-18.1-12; (03)EH1789.1.19. -->
SECTION 19. IC 22-4-18.1-12 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 12. (a) The council shall develop
a program to provide for grants or contracts to develop a back
home in Indiana program. The program must provide a system to
track students who have graduated from private and public
colleges and universities in Indiana. The program must include a
means of periodically contacting these graduates to inform them of
job opportunities in Indiana.
(b) The council shall work with the colleges and universities in
Indiana to develop the tracking system.
(c) The total amount of grants and contracts awarded under this
section in a state fiscal year may not exceed ten percent (10%) of
the amount in the state technology advancement and retention
account established by IC 4-12-11-1.
SOURCE: IC 22-4.1-7; (03)EH1789.1.20. -->
SECTION 20. IC 22-4.1-7 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 7. Certified Internship Programs
Sec. 1. As used in this chapter, "certified internship program"
refers to an internship program that is certified by the department,
in consultation with the department of education, under section 5
of this chapter.
Sec. 2. As used in this chapter, "employer" has the meaning set
forth in IC 22-8-1.1-1.
Sec. 3. As used in this chapter, "institution of higher learning"
has the meaning set forth in IC 20-12-70-4.
Sec. 4. As used in this chapter, "student" means an individual
who is enrolled at an institution of higher learning on at least a
part-time basis.
Sec. 5. (a) An institution of higher learning that seeks
certification for an internship program under this chapter shall
submit an application for certification to the department on a form
prescribed by the department.
(b) The department, in consultation with the department of
education, shall certify an internship program under this chapter
if the program:
(1) is operated or administered by an institution of higher
learning or a department, school, or program within an
institution of higher learning;
(2) integrates a particular curriculum or course of study
offered at the institution of higher learning with career
internships provided by employers;
(3) places students in career internships provided by
employers;
(4) requires participating students to meet certain academic
standards established by rule by the department in
consultation with the department of education;
(5) requires employers to provide to participating students
the:
(A) supervision; and
(B) payroll and personnel services;
that the employers provide to their regular part-time
employees, if any;
(6) is designed to provide an internship experience that
enriches and enhances the classroom experience of
participating students;
(7) requires employers to comply with all state and federal
laws pertaining to the workplace; and
(8) complies with any other requirement adopted by rule by
the department after consultation with the department of
education.
Sec. 6. A certified internship program may allow a student to
participate in an internship at any time during the year, including
the summer, as long as the student remains enrolled at the
institution of higher learning that operates or administers the
certified internship program.
Sec. 7. The department, in consultation with the department of
education, may adopt rules under IC 4-22-2 to implement this
chapter.
SOURCE: IC 22-4.1-8; (03)EH1789.1.21. -->
SECTION 21. IC 22-4.1-8 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]:
Chapter 8. Certified School to Career Programs
Sec. 1. As used in this chapter, "certified program" means a
school to career program approved by the department in
conjunction with the department of education that is conducted
under an agreement under this chapter and that:
(1) integrates a secondary school curriculum with private
sector job training;
(2) places students in job internships; and
(3) is designed to continue into postsecondary education and
results in teaching new skills and adding value to the wage
earning potential of participants and increasing their long
term employability in Indiana.
Sec. 2. As used in this chapter, "institution of higher learning"
has the meaning set forth under IC 20-12-70-4.
Sec. 3. As used in this chapter, "participant" means an
individual who:
(1) is at least sixteen (16) years of age and less than
twenty-four (24) years of age;
(2) is enrolled in a public or private secondary or
postsecondary school; and
(3) participates in a certified program as part of the
individual's secondary or postsecondary school education.
Sec. 4. As used in this chapter, "sponsor" means an individual,
a person, an association, a committee, an organization, or other
entity operating a certified program and in whose name the
certified program is registered or approved.
Sec. 5. (a) The department shall do the following:
(1) Accept applications from entities interested in sponsoring
certified programs on forms prescribed by the department.
(2) Investigate each applicant to determine the suitability of
the applicant to sponsor a certified program.
(3) Impose an application fee in an amount sufficient to pay
the costs incurred in processing the application and
investigating the applicant.
(b) The department may adopt rules under IC 4-22-2 to
administer this chapter.
Sec. 6. (a) The department of education shall review the
secondary school curriculum component of each proposed certified
program. The department may not approve a proposed certified
program unless the department of education approves the
applicant's proposed secondary school curriculum.
(b) Upon the request of the department, the department of
education shall:
(1) consult with the department before the adoption of rules
under section 5 of this chapter; and
(2) provide any other assistance to the department.
Sec. 7. The department may not approve a certified program
unless the following requirements are met:
(1) The program must be conducted under an organized,
written plan embodying the terms and conditions of
employment, job training, classroom instruction, and
supervision of one (1) or more participants, subscribed to by
a sponsor who has undertaken to carry out the certified
program.
(2) The program must comply with all state and federal laws
pertaining to the workplace.
(3) The certified program agreement must provide that the
sponsor or an employer participating in the program in
cooperation with the sponsor agrees to assign an employee to
serve as a mentor for a participant. The mentor's occupation
must be in the same career pathway as the career interests of
the participant.
(4) The program must comply with any other requirement
adopted by rule by the department.
Sec. 8. (a) A certified program must comply with the terms of a
written agreement among the sponsor, each participant, and each
cooperating employer. Except as provided in sections 9 and 10 of
this chapter, each agreement must contain the following:
(1) The names and signatures of:
(A) the sponsor;
(B) the employer (if the employer is an entity other than
the sponsor); and
(C) the participant and the participant's parent or
guardian if the participant is a minor.
(2) A description of the career field in which the participant
is to be trained and the beginning date and duration of the
training.
(3) The employer's agreement to provide paid employment for
the participant at a base wage which may not be less than the
minimum wage prescribed by the federal Fair Labor
Standards Act during the participant's junior and senior
years in high school.
(4) The employer's agreement to assign an employee to serve
as a mentor for a participant. The mentor's occupation must
be in the same career pathway as the career interests of the
participant.
(5) An agreement between the participant and employer
concerning specified minimum academic standards that must
be maintained throughout the participant's secondary
education.
(6) The participant's agreement to work for the employer for
at least two (2) years following the completion of the
participant's secondary education.
(b) An agreement described in subsection (a)(6) may be
modified to defer the participant's employment with the employer
until after the participant completes an appropriate amount of
postsecondary education as agreed to by the participant and the
employer.
Sec. 9. (a) If a participant's desired career pathway requires
postsecondary education, an agreement required under section 8
of this chapter may be modified to include the following:
(1) The employer's agreement to provide paid employment for
the participant at a base wage which may not be less than the
minimum wage prescribed by the federal Fair Labor
Standards Act during the participant's postsecondary
education.
(2) An agreement that in addition to the base wage paid to the
participant, the employer shall pay an additional sum to be
held in trust to be applied toward the participant's
postsecondary education.
(3) The participant's agreement to work for the employer for
at least two (2) years following the completion of the
participant's postsecondary education.
(b) The additional amount described in subsection (a)(2) must
not be less than an amount determined by the department to be
sufficient to provide payment of tuition expenses toward
completion of not more than two (2) academic years at an
institution of higher learning. The amount shall be held in trust for
the benefit of the participant under rules adopted by the
department. Payment into a fund approved under the federal
Employee Retirement Income Security Act of 1974 for the benefit
of the participant satisfies this requirement. The approved fund
must be specified in the agreement.
Sec. 10. (a) If a participant enters a certified program following
the completion of the participant's secondary education, the
agreement required under section 8 of this chapter must be
modified to include the following:
(1) The employer's agreement to provide paid employment for
the participant at a base wage which may not be less than the
minimum wage prescribed by the federal Fair Labor
Standards Act during the participant's postsecondary
education.
(2) An agreement that in addition to the base wage paid to the
participant, the employer shall pay an additional sum to be
applied toward the participant's postsecondary education.
This amount may be paid directly to the participant's
institution of higher learning on behalf of the participant.
(3) The participant's agreement to work for the employer for
at least two (2) years following the completion of the
participant's postsecondary education.
(b) The additional amount described in subsection (a)(2) must
not be less than an amount determined by the department to be
sufficient to provide payment of tuition expenses toward
completion of not more than two (2) academic years at an
institution of higher learning.
Sec. 11. If a participant does not complete the certified program
contemplated by the agreement before entering a postsecondary
education program, the money being held in trust for the
participant's postsecondary education shall be paid back to the
employer.
Sec. 12. If a participant does not complete the certified program
contemplated by an agreement described in section 8, 9, or 10 of
this chapter after entering a postsecondary education program,
any unexpended funds being held in trust for the participant's
postsecondary education shall be paid back to the employer. In
addition, the participant must repay to the employer amounts paid
from the trust that were expended on the participant's behalf for
the participant's postsecondary education.
Sec. 13. If a participant does not complete the two (2) year
employment obligation required under an agreement described in
section 8, 9, or 10 of this chapter, the participant shall repay to the
employer the amount paid by the employer toward the
participant's postsecondary education expenses under this chapter.
SOURCE: IC 22-4.1-9; (03)EH1789.1.22. -->
SECTION 22. IC 22-4.1-9 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]:
Chapter 9. Smart Partnership Grants
Sec. 1. The department shall establish guidelines for making
grants to the Indiana schools smart partnership, which is
established to create partnerships between schools and local
businesses to make the curriculum of math and science relevant to
the students.
Sec. 2. The total amount of grants awarded under this chapter
in a state fiscal year may not exceed five percent (5%) of the
amount in the state technology advancement and retention account
established by IC 4-12-11-1.
Sec. 3. The department may make grants to coordinating
organizations and participating schools.
SOURCE: ; (03)EH1789.1.23. -->
SECTION 23. [EFFECTIVE UPON PASSAGE] (a)
Notwithstanding IC 4-12-10, for the period beginning July 1, 2003,
and ending June 30, 2005, grants of two hundred thousand dollars
($200,000) shall be made to:
(1) East Central Indiana technology transfer program
administered by Ball State University; and
(2) Southwestern Indiana technology transfer program
administered by the University of Southern Indiana;
for their use in establishing and operating technology talent
programs.
(b) This SECTION expires December 31, 2005.
SOURCE: ; (03)EH1789.1.24. -->
SECTION 24. [EFFECTIVE JULY 1, 2003] The credit against a
taxpayer's state tax liability provided under IC 6-3.1-25, as added
by this act, applies to taxable years beginning after December 31,
2004.
SOURCE: ; (03)EH1789.1.25. -->
SECTION 25. [EFFECTIVE UPON PASSAGE]
(a) As used in this
SECTION, "department" refers to the department of workforce
development.
(b) Notwithstanding IC 22-4.1-7-7, as added by this act, the
department, in consultation with the department of education, shall
adopt rules to implement IC 22-4.1-7, as added by this act, in the
same manner as emergency rules are adopted under
IC 4-22-2-37.1. Any rules adopted under this SECTION must be
adopted not later than September 1, 2003. A rule adopted under
this SECTION expires on the earlier of:
(1) the date a rule is adopted by the department, in
consultation with the department of education, under
IC 4-22-2-24 through IC 4-22-2-36 to implement IC 22-4.1-7,
as added by this act; or
(2) January 1, 2006.
(c) Notwithstanding IC 6-3.1-25-9, as added by this act, the
department may:
(1) certify an internship program under IC 22-4.1-7, as added
by this act, with respect to which a taxpayer wishes to claim
a credit under IC 6-3.1-25-9, as added by this act, for payroll
expenditures made during a taxable year beginning before
January 1, 2005, to a student participating in the internship
program; and
(2) make the certification of the internship program under
IC 22-4.1-7, as added by this act, effective as of a date before
January 1, 2005.
(d) This SECTION expires December 31, 2006.
SOURCE: ; (03)EH1789.1.26. -->
SECTION 26. [EFFECTIVE JULY 1, 2003] (a) The legislative
council shall assign the clean manufacturing tax credit established
under IC 6-3.1-28, as added by this act, for audit and evaluation
under IC 2-5-21 during 2007.
(b) This SECTION expires July 1, 2008.
SOURCE: ; (03)EH1789.1.27. -->
SECTION 27. [EFFECTIVE JULY 1, 2003] (a) The clean
manufacturing income tax credit board established by
IC 6-3.1-20-13, as added by this act, may not take action under
IC 6-3.1-20, as added by this act, before January 1, 2005.
(b) A taxpayer is entitled to a tax credit under IC 6-3.1-20, as
added by this act, for either:
(1) a qualified material substitution expense; or
(2) a qualified clean manufacturing investment;
or both, only to the extent that the qualified material substitution
expense is incurred after December 31, 2004, or the qualified clean
manufacturing investment is made after December 31, 2004.
SOURCE: ; (03)EH1789.1.28. -->
SECTION 28.
An emergency is declared for this act.