SENATE BILL No. 289
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-33.
Synopsis: Economic development incentive payments. Requires the
recipients of incentive payments under a riverboat development
agreement to report annually certain information regarding the
incentive payments received. Provides that the gaming commission
may order an operating agent or person holding an owner's license to
withhold incentive payments under certain circumstances. Requires the
gaming commission to post the annual reports on an Internet web site.
Effective: July 1, 2009.
January 7, 2009, read first time and referred to Committee on Commerce, Public Policy
& Interstate Cooperation.
First Regular Session 116th General Assembly (2009)
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between statutes enacted by the 2008 Regular Session of the General Assembly.
SENATE BILL No. 289
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-33-2-6.5; (09)IN0289.1.1. -->
SECTION 1. IC 4-33-2-6.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2009]: Sec. 6.5. "Development agreement" means an agreement
(1) is between:
(A) the direct or indirect holder of an owner's license or
operating agent contract; and
(i) a person; or
(ii) a unit of local government; and
(2) sets forth the holder's financial commitments to support
economic development in a unit or a geographic region.
SOURCE: IC 4-33-2-11.7; (09)IN0289.1.2. -->
SECTION 2. IC 4-33-2-11.7 IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2009]: Sec. 11.7. "Incentive payment" means any payment that
a direct or an indirect holder of an owner's license or an operating
agent contract is required to make under a development
SOURCE: IC 4-33-4-22.5; (09)IN0289.1.3. -->
SECTION 3. IC 4-33-4-22.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2009]: Sec. 22.5. For the purpose of:
(1) administering, regulating, and enforcing the system of
riverboat gambling established under this article; or
(2) protecting or enhancing the credibility and integrity of
gambling operations authorized by this article;
the commission has jurisdiction and supervision over development
agreements and incentive payments.
SOURCE: IC 4-33-4-23; (09)IN0289.1.4. -->
SECTION 4. IC 4-33-4-23, AS ADDED BY P.L.199-2005,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 23. (a) An operating agent or a person holding an
owner's license must report annually to the commission the following: (e) Any amounts withheld from a recipient under subsection
(d)(1) and (d)(2) must be paid to the commission for deposit into an
interest bearing account. The commission may release the withheld
amount and any interest attributable to the withheld amount to the
recipient upon a finding at a public hearing that the recipient's
activities and use of the incentive payments that it receives will
(1) The total dollar amounts and recipients of incentive payments
(2) Any other items related to the payments described in
subdivision (1) that the commission may require.
(b) The commission shall prescribe, with respect to the report
required by subsection (a):
(1) the format of the report;
(2) the deadline by which the report must be filed; and
(3) the manner in which the report must be maintained and filed.
(c) Before February 1, a recipient of an incentive payment shall
submit to the commission an annual report containing the
(1) A verified accounting of all accounts associated with
incentive payments received in the preceding calendar year.
(2) An itemized list of all disbursements of incentive payments
made to any person exceeding five thousand dollars ($5,000)
in the aggregate during the preceding calendar year that
(A) the legal name of the recipient;
(B) the date of each disbursement;
(C) the amount of each disbursement; and
(D) the purpose of each disbursement.
(d) The commission may order an operating agent or a person
holding an owner's license to withhold one (1) or more incentive
payments from a recipient if the commission makes a finding at a
public hearing that:
(1) the report submitted by the recipient under subsection (c)
is incomplete or inaccurate;
(2) the amounts paid to the recipient are not sufficiently
benefiting the economic development of the geographic area
(3) payment of the incentive payments adversely affects the
credibility and integrity of the riverboat gambling industry in
sufficiently benefit the economic development of the geographic
(f) The commission shall post the annual reports submitted
under subsection (c) on an Internet web site, in a location and
format easily accessible to the public.
SOURCE: IC 4-33-6-7; (09)IN0289.1.5. -->
SECTION 5. IC 4-33-6-7, AS AMENDED BY P.L.234-2007,
SECTION 302, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2009]: Sec. 7. (a) In granting a license under
this chapter, the commission may give favorable consideration to the
(1) Economically depressed areas of Indiana.
(2) Applicants presenting plans that provide for significant
economic development over a large geographic area.
(b) This subsection applies to any owner's license issued for a city
described in section 1(a)(1) of this chapter. The commission must
require the applicant to provide assurances that economic development
will occur in the city and that adequate infrastructure and site
preparation will be provided to support the riverboat operation. In order
to prove the assurance that economic development will occur, the
(1) construct or provide for the construction of an approved hotel;
(2) cause economic development that will have an economic
impact on the city that exceeds the economic impact that the
construction of an approved hotel would have.
(c) This subsection applies to an owner's license issued for the City
of East Chicago. If a controlling interest in the owner's license is
transferred, the fiscal body of the City of East Chicago may adopt an
ordinance voiding any term of the development agreement
by IC 36-1-8-9.5)
(1) the city; and
(2) the person transferring the controlling interest in the owner's
that is in effect as of the date the controlling interest is transferred. The
ordinance may provide for any payments made under the
redevelopment agreement, including those held in escrow, to be
redirected to the City of East Chicago for use as directed by ordinance
of the city fiscal body. A requirement to redirect a payment is valid to
the same extent as if the requirement had been part of the original
agreement. If the ordinance provides for the voiding and renegotiation
of any part of a redevelopment agreement, the mayor of the City of East
Chicago may negotiate with the person acquiring a controlling interest
in the owner's license to replace any terms voided by the ordinance.
Terms negotiated under this subsection must be ratified in an ordinance
adopted by the city legislative body.