HB 1251-5_ Filed 02/07/2011, 11:27 Pelath


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    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that House Bill 1251 be amended to read as follows:

SOURCE: Page 1, line 1; (11)MO125107.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 5-28-2-4.1; (11)MO125107.1. -->     "SECTION 1. IC 5-28-2-4.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4.1. "Incentive granted by the corporation" includes any benefit, grant, loan, loan guarantee, money, tax deduction, tax credit, or other thing of value referred to in:
        (1) this article; or
        (2) another Indiana statute that authorizes the corporation, including the board, to award or approve the award of any benefit, grant, loan, money, tax credit, or other thing of value.

SOURCE: IC 5-28-6-5; (11)MO125107.2. -->     SECTION 2. IC 5-28-6-5, AS ADDED BY P.L.110-2010, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. The corporation shall designate an employee to serve as a compliance officer whose duties are to determine and report to the corporation whether each person that receives a job creation an incentive granted by the corporation or another agency or instrumentality of the state (excluding any political subdivision or other unit of local government) complies with the terms and conditions of the person's incentive agreement.
SOURCE: IC 5-28-6-6; (11)MO125107.3. -->     SECTION 3. IC 5-28-6-6, AS ADDED BY P.L.110-2010, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. The corporation shall require an applicant for a job creation an incentive to be granted by the corporation after

March 31, 2010, to enter into an agreement with the corporation as a condition of receiving the incentive. Subject to IC 5-28-28-8, the agreement must include the following requirements:
        (1) The A specific number of individuals that are expected to will be employed by the applicant as of a specified date each year.
        (2) A requirement that the applicant will file with the compliance officer an annual compliance report detailing the applicant's compliance, or progress toward compliance, with subdivision (1).
        (3) A provision that notifies the applicant that the applicant is subject to a determination of the corporation under this subdivision. The corporation, after a finding That The applicant will pay back to the state the proportionate share of any incentive that has already been received by the applicant if the applicant is found to be employing fewer individuals than the applicant agreed to employ under subdivision (1). subject to any confidentiality laws, shall hold a hearing to determine if the applicant shall be required to pay back to the state a part of the incentive granted to the applicant under the agreement. The penalty imposed must be a matter of public record and must reflect in a fair and balanced way the amount of incentive received. The amount required to be paid back is the percentage of the total incentive that equals the ratio that the deficiency in the number of individuals employed bears to the number of individuals the applicant agreed under subdivision (1) to employ.
        (4) A requirement that the applicant will pay back to the state the entire incentive that has been received by the applicant if the applicant moves, or closes, or transfers employment positions out of Indiana.
Except as provided in IC 5-28-28-8, the corporation may not provide an incentive granted by the corporation to a person that is being required to pay back any part of an incentive to the state,
until the date the person has repaid the incentive to the state.

SOURCE: IC 5-28-28-1; (11)MO125107.4. -->     SECTION 4. IC 5-28-28-1, AS ADDED BY P.L.222-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. This chapter applies to grants, loans, and tax credits:
        (1) applied for; and
        (2) awarded;
after June 30, 2007. However, sections 8 and 9 of this chapter apply to any incentive granted by the corporation before, on, or after June 30, 2007.
SOURCE: IC 5-28-28-7; (11)MO125107.5. -->     SECTION 5. IC 5-28-28-7, AS AMENDED BY P.L.110-2010, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) If, in the course of compiling information to complete a report required by section 5 of this chapter

or upon the receipt of any other information concerning noncompliance with the terms and conditions of an incentive granted by the corporation, the corporation determines that a recipient of an incentive awarded by the corporation has not complied with the representations that the recipient made in obtaining the incentive, the corporation shall take the actions required under subsections (b) and (d).
    (b) If the incentive is a grant or loan awarded before April 1, 2010, the corporation shall determine:
        (1) whether there was good cause for the noncompliance; and
        (2) whether the recipient is in default.
If in the judgment of the corporation there is not good cause for any noncompliance discovered under subsection (a), the corporation may seek a refund or arrange other methods of reclaiming the grant or loan from the recipient. If the corporation does seek a refund or otherwise reclaims a grant or loan from the recipient under this section, the amount of the refund or reclaimed part must be in proportion to the degree of default by the recipient as determined by the corporation.
    (c) Subsection (b) does not apply to a recipient of a grant or loan if:
        (1) the grant or loan has been disbursed on a pro rata basis; and
        (2) in the judgment of the corporation, the recipient's performance in relation to the recipient's performance goals equals or exceeds the ratio of the amount of the recipient's actual benefit from the grant or loan to the total amount of the grant or loan originally contemplated in the grant or loan award.
    (d) If the incentive granted by the corporation was awarded after March 31, 2010, subject to section 8 of this chapter, the corporation shall seek a refund or arrange other methods of reclaiming the value of the incentive granted by the corporation from the recipient. The amount of the refund or reclaimed part must be in proportion to the degree of default by the recipient as determined by the corporation. If the noncompliance is a failure to meet a requirement related to employment levels, the amount reclaimed must be a percentage of the incentive that equals the deficiency in the number of individuals employed as compared to the number of individuals the recipient agreed to employ.

SOURCE: IC 5-28-28-8; (11)MO125107.6. -->     SECTION 6. IC 5-28-28-8, AS ADDED BY P.L.110-2010, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) As used in this section, "recapture provision" means language that requires the recipient of an incentive to repay some part of the incentive.
    (b) The corporation may waive or modify a recapture provision of this article or an agreement made with a person to whom the corporation has awarded an incentive if the corporation determines that the recipient of an incentive awarded by the corporation has failed to meet a condition for receiving the incentive because of circumstances beyond the recipient's control, including:
        (1) natural disaster;
        (2) unforeseen industry trends;
        (3) lack of available labor force; or
        (4) loss of a major supplier or market. or
        (5) another circumstance beyond the recipient's control, as determined by the corporation.
SOURCE: IC 5-28-28-9; (11)MO125107.7. -->     SECTION 7. IC 5-28-28-9, AS ADDED BY P.L.110-2010, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) Beginning in 2010, the economic incentives and compliance report required under section 5 of this chapter must include an annual report containing summary statistics on the effectiveness of and compliance with all incentives granted by the corporation. The report required by this section must: describe:
        (1) the overall compliance with the terms and conditions of incentives provided; and
        (2) penalties imposed for failure to comply with the terms and conditions of incentives provided.
The report must also be submitted to the general assembly in an electronic format under IC 5-14-6.
    (b) Upon request, the corporation shall make available:
        (1) information include a section specifying each person's compliance with its incentive agreement and any incentive that had to be reduced or paid back as a result of noncompliance with an incentive agreement;
        (2) information stating, state, for each incentive recipient, the total incentive provided for each job created, computed from the date the incentive is granted through June 30 of the year of the report; and
        (3) information concerning all waivers or modifications under section 8 of this chapter; and
        (4) information describing all hearings and determinations under IC 5-28-6-6.
         (3) be submitted to the general assembly in an electronic format under IC 5-14-6.".

SOURCE: Page 3, line 14; (11)MO125107.3. -->     Page 3, after line 14, begin a new paragraph and insert:
SOURCE: IC 5-28-2-5.5; (11)MO125107.9. -->     "SECTION 9. IC 5-28-2-5.5 IS REPEALED [EFFECTIVE UPON PASSAGE].
SOURCE: ; (11)MO125107.10. -->     SECTION 10. An emergency is declared for this act.".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1251 as printed February 1, 2011.)

________________________________________

Representative Pelath


MO125107/DI 92     2011