HB 1121-5_ Filed 03/30/2009, 14:17 ChairPerson

Adopted 3/30/2009

COMMITTEE REPORT



MADAM PRESIDENT:
        
    The Senate Committee on Rules and Legislative Procedure reports that pursuant to Senate Rule 55, the following amendments are to be made to Engrossed House Bill 1121.

    Page 3, between lines 25and 26, begin a new paragraph and insert:
    "SECTION 3. IC 5-14-3-4.4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 4.4. (a) Except as provided in subsection (b), records relating to negotiations between:
        (1) persons required to prepare an annual report under IC 23-1-53-1(c), IC 23-17-27-6(c), or IC 30-4-5-12(e); and
        (2) industrial, research, or commercial prospects;
are exempted from section 3 of this chapter at the discretion of the person required to prepare the annual report if the records are created while negotiations are in progress.
    (b) Records relating to a development agreement payment (as defined in IC 23-1-20-6.2) made by a person specified under subsection (a)(1) to an industrial, a research, or a commercial prospect shall be available for inspection and copying under section 3 of this chapter after negotiations with that prospect have terminated.
    (c) Subject to subsection (b), the exemption from disclosure under subsection (a) applies to the attorney general if the attorney general requests to inspect an annual report under IC 23-1-53-1(d), IC 23-17-27-6(d), or IC 30-4-5-12(f).


    SECTION 4. IC 23-1-20-6.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 6.1. "Development agreement" means an agreement that:
        (1) is between:
            (A) the direct or indirect holder of an owner's license issued under IC 4-33 or an operating agent contract (as defined in IC 4-33-2-14.6); and
            (B) either:
                (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.

    SECTION 5. IC 23-1-20-6.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 6.2. "Development agreement payment" means any payment that a direct or indirect holder of:
        (1) an owner's license under IC 4-33; or
        (2) an operating agent contract (as defined in IC 4-33-2-14.6);
is required to make under a development agreement.

    SECTION 6. IC 23-1-53-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 1. (a) On written request of any shareholder, a corporation shall prepare and mail to the shareholder annual financial statements, which may be consolidated or combined statements of the corporation and one (1) or more of its subsidiaries, as appropriate, that include a balance sheet as of the end of the fiscal year most recently completed, an income statement for that year, and a statement of changes in shareholders' equity for that year unless that information appears elsewhere in the financial statements. If financial statements are prepared for the corporation on the basis of generally accepted accounting principles, the annual financial statements must also be prepared on that basis.
    (b) If the annual financial statements are reported upon by a public accountant, the public accountant's report must accompany them. If not, the statements must be accompanied by a statement of the president or the person responsible for the corporation's accounting records:
        (1) stating the person's reasonable belief whether the statements were prepared on the basis of generally accepted accounting principles and, if not, describing the basis of preparation; and
        (2) describing any respects in which the statements were not prepared on a basis of accounting consistent with the statements prepared for the preceding year.
    (c) If a corporation is a recipient of a local development agreement payment, the corporation shall prepare an annual report containing the following information before February 1 of each year:
        (1) A verified accounting of all accounts associated with local development agreement payments received in the preceding calendar year.
        (2) An itemized list of all disbursements of local development agreement payments made to any person exceeding five thousand dollars ($5,000) in the aggregate during the preceding calendar year. The itemized list must include:
            (A) the legal name of the recipient of a disbursement;
            (B) the date of each disbursement;
            (C) the amount of each disbursement; and
            (D) the purpose of each disbursement.
    (d) The principal officer of a corporation subject to subsection (c) shall annually file with the attorney general a verified written certification before March 1 stating that an annual report has been prepared showing at least the items listed in subsection (c). The certification must state that the annual report is available to the attorney general upon request.

    SECTION 7. IC 23-17-2-15.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 15.1. "Development agreement" means an agreement that:
        (1) is between:
            (A) the direct or indirect holder of an owner's license issued under IC 4-33 or an operating agent contract (as defined in IC 4-33-2-14.6); and
            (B) either:
                (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.

    SECTION 8. IC 23-17-2-15.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 15.2. "Development agreement payment" means any payment that a direct or indirect holder of:
        (1) an owner's license under IC 4-33; or
        (2) an operating agent contract (as defined in IC 4-33-2-14.6);
is required to make under a development agreement.

    SECTION 9. IC 23-17-27-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 6. (a)

Except as provided in articles of incorporation or bylaws of a religious corporation, a corporation upon written demand from a member shall furnish the member the corporation's latest annual financial statements, which may be consolidated or combined statements of the corporation and the corporation's subsidiaries or affiliates, as appropriate, that include a balance sheet as of the end of the fiscal year and statement of operations for that year. If financial statements are prepared for the corporation on the basis of generally accepted accounting principles, the annual financial statements must also be prepared on that basis.
    (b) If annual financial statements are reported upon by a certified public accountant, the accountant's report must accompany the statements. If annual financial statements are not reported upon by a certified public accountant, the statements must be accompanied by the statement of the president or the person responsible for the corporation's financial accounting records that does the following:
        (1) States the president's or other person's reasonable belief as to whether the statements were prepared on the basis of generally accepted accounting principles and, if not, describes the basis of preparation.
        (2) Describes any respects in which the statements were not prepared on a basis of accounting consistent with the statements prepared for the preceding year.
    (c) If a corporation is a recipient of a local development agreement payment, the corporation shall prepare an annual report containing the following information before February 1 of each year:
        (1) A verified accounting of all accounts associated with local development agreement payments received in the preceding calendar year.
        (2) An itemized list of all disbursements of local development agreement payments made to any person exceeding five thousand dollars ($5,000) in the aggregate during the preceding calendar year. The itemized list must include:
            (A) the legal name of the recipient of a disbursement;
            (B) the date of each disbursement;
            (C) the amount of each disbursement; and
            (D) the purpose of each disbursement.
    (d) The principal officer of a corporation subject to subsection (c) shall annually file with the attorney general a verified written certification before March 1 stating that an annual report has been prepared showing at least the items listed in subsection (c). The certification must state that the annual report is available to the attorney general upon request.
".


    Page 9, between lines 2 and 3, begin a new paragraph and insert:
    "SECTION 16. IC 30-4-1-2, AS AMENDED BY P.L.61-2008, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 2. As used in this article:
        (1) "Adult" means any person eighteen (18) years of age or older.
        (2) "Affiliate" means a parent, descendant, spouse, spouse of a descendant, brother, sister, spouse of a brother or sister, employee, director, officer, partner, joint venturer, a corporation subject to common control with the trustee, a shareholder, or corporation who controls the trustee or a corporation controlled by the trustee other than as a fiduciary, an attorney, or an agent.
        (3) "Beneficiary" has the meaning set forth in IC 30-2-14-2.
        (4) "Breach of trust" means a violation by the trustee of any duty which is owed to the settlor or beneficiary.
        (5) "Charitable trust" means a trust in which all the beneficiaries are the general public or organizations, including trusts, corporations, and associations, and that is organized and operated wholly for religious, charitable, scientific, public safety testing, literary, or educational purposes. The term does not include charitable remainder trusts, charitable lead trusts, pooled income funds, or any other form of split-interest charitable trust that has at least one (1) noncharitable beneficiary.
        (6) "Court" means a court having jurisdiction over trust matters.
        (7) "Income", except as otherwise stated in a trust agreement, has the meaning set forth in IC 30-2-14-4.
        (8) "Income beneficiary" has the meaning set forth in IC 30-2-14-5.
        (9) "Inventory value" means the cost of property to the settlor or the trustee at the time of acquisition or the market value of the property at the time it is delivered to the trustee, or the value of the property as finally determined for purposes of an estate or inheritance tax.
        (10) "Minor" means any person under the age of eighteen (18) years.
        (11) "Person" has the meaning set forth in IC 30-2-14-9.
        (12) "Personal representative" means an executor or administrator of a decedent's or absentee's estate, guardian of the person or estate, guardian ad litem or other court appointed representative, next friend, parent or custodian of a minor, attorney in fact, or custodian of an incapacitated person (as defined in IC 29-3-1-7.5).
        (13) "Principal" has the meaning set forth in IC 30-2-14-10.
        (14) "Qualified beneficiary" means:
            (A) a beneficiary who, on the date the beneficiary's qualification is determined:
                (i) is a distributee or permissible distributee of trust income or principal;
                (ii) would be a distributee or permissible distributee of trust income or principal if the interest of the distributee described in item (i) terminated on that date;
                (iii) would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date;
                (iv) has sent the trustee a request for notice;
                (v) is a charitable organization expressly designated to receive distributions under the terms of a charitable trust;
                (vi) is a person appointed to enforce a trust for the care of an animal under IC 30-4-2-18; or
                (vii) is a person appointed to enforce a trust for a noncharitable purpose under IC 30-4-2-19; or
            (B) the attorney general, if the trust is a charitable trust having its principal place of administration in Indiana.
        (15) "Remainderman" means a beneficiary entitled to principal, including income which has been accumulated and added to the principal.
        (16) "Settlor" means a person who establishes a trust including the testator of a will under which a trust is created.
        (17) "Trust estate" means the trust property and the income derived from its use.
        (18) "Trust for a benevolent public purpose" means a charitable trust (as defined in subdivision (5)), a split-interest trust (as defined in Section 4947 of the Internal Revenue Code), a perpetual care fund or an endowment care fund established under IC 23-14-48-2, a prepaid funeral plan or funeral trust established under IC 30-2-9, a funeral trust established under IC 30-2-10, a trust or an escrow account created from payments of funeral, burial services, or merchandise in advance of need described in IC 30-2-13, and any other form of split-interest charitable trust that has both charitable and noncharitable beneficiaries, including but not limited to charitable remainder trusts, charitable lead trusts, and charitable pooled income funds.
        (19) "Trust property" means property either placed in trust or purchased or otherwise acquired by the trustee

for the trust regardless of whether the trust property is titled in the name of the trustee or the name of the trust.
        (20) "Trustee" has the meaning set forth in IC 30-2-14-13.
         (21) "Development agreement" means an agreement that:
            (A) is between:
                (i) the direct or indirect holder of an owner's license issued under IC 4-33 or an operating agent contract (as defined in IC 4-33-2-14.6); and
                (ii) either a person or a unit of local government; and
            (B) sets forth the holder's financial commitments to support economic development in a unit or a geographic region.
        (22) "Development agreement payment" means any payment that a direct or indirect holder of:
            (A) an owner's license under IC 4-33; or
            (B) an operating agent contract (as defined in IC 4-33-2-14.6);
        is required to make under a development agreement.

    SECTION 17. IC 30-4-5-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2010]: Sec. 12. (Accounting by Trustees)
    (a) Unless the terms of the trust provide otherwise or unless waived in writing by an adult, competent beneficiary, the trustee shall deliver a written statement of accounts to each income beneficiary or his personal representative annually. The statement shall contain at least:
        (1) all receipts and disbursements since the last statement; and
        (2) all items of trust property held by the trustee on the date of the statement at their inventory value.
    (b) This subsection applies to a charitable trust with assets of at least five hundred thousand dollars ($500,000). The trustee of a charitable trust shall annually file a verified written certification with the attorney general stating that a written statement of accounts has been prepared showing at least the items listed in section 13(a) of this chapter. The certification must state that the statement of accounts is available to the attorney general and any member of the general public upon request. A charitable trust may not be exempted from this requirement by a provision in a will, trust agreement, indenture, or other governing instrument. This subsection does not prevent a trustee from docketing a charitable trust to finalize a written statement of account or any other lawful purpose in the manner provided in this article. However, this subsection does not apply to an

organization that is not required to file a federal information return under Section 6033(a)(2)(A)(i) or Section 6033(a)(2)(A)(ii) of the Internal Revenue Code.
    (c) Upon petition by the settlor, a beneficiary or his personal representative, a person designated by the settlor to have advisory or supervisory powers over the trust, or any other person having an interest in the administration or the benefits of the trust, including the attorney general in the case of a trust for a benevolent public purpose, the court may direct the trustee to file a verified written statement of accounts showing the items listed in section 13(a) of this chapter. The petition may be filed at any time, provided, however, that the court will not, in the absence of good cause shown, require the trustee to file a statement more than once a year.
    (d) If the court's jurisdiction is of a continuing nature as provided in IC 30-4-6-2, the trustee shall file a verified written statement of accounts containing the items shown in section 13(a) of this chapter with the court biennially, and the court may, on its own motion, require the trustee to file such a statement at any other time provided there is good cause for requiring a statement to be filed.
    (e) If a charitable trust or trust for a benevolent public purpose is a recipient of a local development agreement payment, the trustee shall prepare an annual report containing the following information before February 1 of each year:
        (1) A verified accounting of all accounts associated with local development agreement payments received in the preceding calendar year.
        (2) An itemized list of all disbursements of local development agreement payments made to any person exceeding five thousand dollars ($5,000) in the aggregate during the preceding calendar year. The itemized list must include:
            (A) the legal name of the recipient of a disbursement;
            (B) the date of each disbursement;
            (C) the amount of each disbursement; and
            (D) the purpose of each disbursement.
    (f) The trustee of a trust subject to subsection (e) shall annually file with the attorney general a verified written certification before March 1 stating that an annual report

has been prepared showing at least the items listed in

subsection (e). The certification must state that the annual report is available to the attorney general upon request.".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1121 as reprinted March 24, 2009.)

and when so amended that said bill do pass.

    

__________________________________

Senator LONG


RS112104/DI JHM
2009