SOURCE: Page 1, line 1; (04)MO027201.1. -->
Page 1, delete lines 1 through 17, begin a new paragraph and insert:
SOURCE: IC 6-2.5-4-5; (04)MO027201.1. -->
"SECTION 1. IC 6-2.5-4-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 5. (a) As used in this
section, a "power subsidiary" means a corporation which is owned or
controlled by one (1) or more public utilities that furnish or sell
electrical energy, natural or artificial gas, water, steam, or steam heat
and which produces power exclusively for the use of those public
utilities.
(b) A power subsidiary or a person engaged as a public utility is a
retail merchant making a retail transaction when the subsidiary or
person furnishes or sells electrical energy, natural or artificial gas,
water, steam, or steam heating service to a person for commercial or
domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a person
engaged as a public utility is not a retail merchant making a retail
transaction
when: in any of the following transactions:
(1) The power subsidiary or person provides, installs, constructs,
services, or removes tangible personal property which is used in
connection with the furnishing of the services or commodities
listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
or
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, refining, oil extraction, mineral
extraction, irrigation, agriculture, or horticulture. However, this
exclusion for sales of the services and commodities only applies
if the services are consumed as an essential and integral part of an
integrated process that produces tangible personal property and
those sales are separately metered for the excepted uses listed in
this subdivision, or if those sales are not separately metered but
are predominately used by the purchaser for the excepted uses
listed in this subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business
that after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)),
a military base reuse area established under IC 36-7-30,
an economic development area established under
IC 36-7-14.5-12.5, or a military base recovery site
designated under IC 6-3.1-11.5.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sale of the services or commodities are separately
metered for use by the relocated or expanded operations.
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another
location in Indiana in order to relocate its operations in an
area described in this subdivision, unless the department
determines that the business had existing operations in the
area described in this subdivision and that the operations
relocated to the area are an expansion of the business's
operations in the area.".
SOURCE: Page 2, line 1; (04)MO027201.2. -->
Page 2, delete lines 1 through 37.
Renumber all SECTIONS consecutively.
(Reference is to SB 272 as printed January 30, 2004.)
________________________________________
Senator KENLEY