HB 1374-1_ Filed 01/26/2000, 13:30
Text Box
Adopted Rejected
[
]
COMMITTEE REPORT
YES:
25
NO:
0
MR. SPEAKER:
Your Committee on Ways and Means , to which was referred House Bill
1374 , has had the same under consideration and begs leave to report the same back to the
House with the recommendation that said bill be amended as follows:
SOURCE: Page 1, line 1; (00)CR137401.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 4-4-8-1; (00)CR137401.1. -->
"SECTION 1.
IC 4-4-8-1
, AS AMENDED BY P.L.227-1999,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2001]: Sec. 1. As used in this chapter:
"Department" means the department of commerce.
"Enterprise zone" means an enterprise zone created under
IC 4-4-6.1.
"Governing body" means the legislative body of a city, town, or
county, an economic development commission, or any board
administering the affairs of a special taxing district.
"Industrial development program" means any program designed to
aid the growth of industry in Indiana and includes:
(1) the construction of airports, airport facilities, and tourist
attractions;
(2) the construction, extension, or completion of sewerlines,
waterlines, streets, sidewalks, bridges, roads, highways, public
ways, and information and high technology infrastructure (as
defined in this section);
(3) the leasing or purchase of property, both real and personal;
and
(4) the preparation of surveys, plans, and specifications for the
construction of publicly owned and operated facilities, utilities,
and services.
"Information and high technology infrastructure" includes, but is not
limited to, fiber optic cable and other infrastructure that supports high
technology growth and the purchase and installation of such fiber optic
cable and other infrastructure.
"Minority enterprise small business investment company" means an
investment company licensed under 15 U.S.C. 681(D).
"Qualified entity" means a city, town, county, economic
development commission, or special taxing district.
"Small business investment company" means an investment
company licensed under 15 U.S.C. 691 et seq.
"State corporation" means the state corporation, as defined by
IC 6-3.1-5-2.
SOURCE: IC 4-4-8-2; (00)CR137401.2. -->
SECTION 2.
IC 4-4-8-2
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2001]: Sec. 2. (a) The general assembly
finds that:
(1) areas in Indiana have insufficient employment opportunities
and insufficient diversification of industry;
(2) these conditions are harmful to the health, prosperity,
economic stability, and general welfare of these areas and, if not
remedied, will be detrimental to the development of these areas;
and
(3) the use of money under this chapter and the fostering of
industrial development programs serves a public purpose.
(b) There is created a fund to be known as the industrial
development fund from which fund loans may be made to qualified
entities
and small business investment companies
and the state
corporation in accordance with this chapter and the rules adopted under
it. The administrative control of the fund and the responsibility for the
administration of this chapter are vested jointly in the state board of
finance and the department. The department, subject to the approval of
the state board of finance, may adopt rules for the proper
administration of the fund and this chapter. The department, subject to
the approval of the state budget agency, may employ personnel as
necessary for the efficient administration of this chapter.
SOURCE: IC 4-4-8-3; (00)CR137401.3. -->
SECTION 3.
IC 4-4-8-3
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2001]: Sec. 3. (a) There is appropriated to
the industrial development fund from the general fund of the state two
million dollars ($2,000,000). This sum does not revert to the general
fund but constitutes a revolving fund to be used exclusively for the
purpose of this chapter. The department, subject to the approval of the
state board of finance, may order the auditor of state to make any
approved loan from the revolving fund to any qualified entity
(including the purchase of bonds of the qualified entity), any small
business investment company, or minority enterprise small business
investment company. or the state corporation.
(b) A qualified entity may borrow funds from the department under
this chapter and shall use the loan proceeds for the purpose of
instituting and administering any approved industrial development
program. The combined amount of any such outstanding loans to any
one (1) program may not exceed one million dollars ($1,000,000).
However, the one million dollar ($1,000,000) restriction in this
subsection does not apply to an approved industrial development
program in an economic development district established by a qualified
entity under
IC 6-1.1-39.
A loan made under this chapter to an
economic development commission is not a loan to or an obligation of
the qualified entity that formed the commission, if the repayment of the
loan is limited to a specified revenue source under section 8 of this
chapter.
(c) A small business investment company or minority enterprise
small business investment company or the state corporation may use
the loan proceeds for any lawful purpose.
(d) Notwithstanding any other law (including
IC 5-1-11
) the loan to
a qualified entity under this section may be directly negotiated with the
department without public sale of bonds or other evidences of
indebtedness of the qualified entity.
SOURCE: IC 4-4-8-5; (00)CR137401.4. -->
SECTION 4.
IC 4-4-8-5
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2001]: Sec. 5. (a) The state board of
finance and the department shall authorize the making of a loan to any
qualified entity under this chapter only when all of the following
conditions exist:
(1) An application for the loan has been submitted by the
qualified entity, in a verified petition, to the state board of finance
and the department in such manner and form as the state board of
finance and the department direct, setting forth therein:
(A) the need for the program and the need for funds for
instituting and administering the program;
(B) an engineering estimate of the cost of the proposed
program acceptable to the state board of finance and the
department;
(C) the amount of money needed; and
(D) such other information as is requested by the state board
of finance and the department.
(2) The proposed program has been approved by the state board
of finance and the department, which they may do only if they
have determined that the program is based upon sound
engineering principles and is in the interest of industrial
development.
(3) The loan does not exceed one hundred percent (100%) of the
cost to the qualified entity of any approved program, the cost of
the program to be based upon an estimate made by a competent
engineering authority and approved by the department.
(4) The qualified entity has agreed to furnish assurance,
satisfactory to the state board of finance and the department, that
it will operate and maintain the program, after completion, in a
satisfactory manner.
(b) The state board of finance and the department shall authorize the
making of a loan to any small business investment company or the state
corporation under this chapter only if:
(1) the small business investment company or minority enterprise
small business investment company or the state corporation has
loaned to or invested in a business located in an enterprise zone
for a purpose directly related to the enterprise zone an amount
that is at least twice the amount of the requested loan; and
(2) the small business investment company or state corporation
has submitted an application, before the beginning of the phase
out period of the enterprise zone, to the state board of finance and
the department that shows the amount of the loan requested and
any other information that is requested by the state board of
finance and the department.
SOURCE: IC 4-4-8-7; (00)CR137401.5. -->
SECTION 5.
IC 4-4-8-7
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2001]: Sec. 7. The state board of finance
and the department shall determine and ascribe to any applicant for a
loan a priority rating, which rating shall be based primarily on the need
of the qualified entity for any such proposed program or on the need of
the small business investment company or minority enterprise small
business investment company or state corporation for the loan as such
need is related to the needs of other applicants for loans. The qualified
entities, small business investment companies, or minority enterprise
small business investment company or state corporation having the
highest priority rating shall be given first consideration in making loans
under this chapter, which loans shall be made in descending order as
shown by the priority ratings.
SOURCE: IC 4-4-8-10; (00)CR137401.6. -->
SECTION 6.
IC 4-4-8-10
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2001]: Sec. 10. (a) If a qualified entity
fails to make repayment of money lent under this chapter or is in any
way indebted to the fund for any amounts incurred or accrued, the
amount payable may be:
(1) withheld by the auditor of state as set forth in the loan
agreement with the qualified entity from any money payable to
the qualified entity and transferred to the fund; or
(2) recovered in an action by the state on relation of the
department, prosecuted by the attorney general, in the circuit or
superior court of the county in which the qualified entity is
located.
(b) If the state corporation or a small business investment
corporation or a minority enterprise small business investment
company fails to make repayment of money lent under this chapter or
is in any way indebted to the fund for any amounts incurred or accrued,
the amount payable may be recovered in an action by the state on
relation of the department, prosecuted by the attorney general, in the
circuit or superior court of the county in which the state corporation or
small business investment corporation or a minority enterprise small
business investment company is located.
SOURCE: IC 6-2.1-1-2; (00)CR137401.7. -->
SECTION 7.
IC 6-2.1-1-2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2001]: Sec. 2. (a) Except as
expressly provided in this article, "gross income" means all the gross
receipts a taxpayer receives:
(1) from trades, businesses, or commerce;
(2) as admission fees or charges;
(3) from the sale, transfer, or exchange of property, real or
personal, tangible or intangible;
(4) from the performance of contracts;
(5) as prizes or premiums;
(6) from insurance policies;
(7) as damages or judgments;
(8) from the investment of capital, including interest, discounts,
rentals, royalties, dividends, fees, and commissions;
(9) from the surrender, sale, transfer, exchange, redemption of, or
distribution upon, stock of corporations or associations; and
(10) from any other source not specifically described in this
subsection.
(b) Except as provided in
IC 6-2.1-4
, no deductions from a
taxpayer's gross income may be taken for return of capital invested,
cost of property sold, cost of materials used, labor costs, interest,
discounts, commissions paid or credited, losses, or any other expense
paid or credited.
(c) The term "gross income" does not include:
(1) the receipt or repayment of borrowed money;
(2) receipts from the issuance or redemption of bonds;
(3) amounts received as payment of the principal amount of a note
taken in lieu of cash if:
(A) the face value of the note was included in the taxpayer's
gross income at the time of acceptance;
(B) the note was taken before May 1, 1933; or
(C) the note is a renewal of a note that was taken before May
1, 1933;
(4) amounts received in payment of, or from the sale of, a
promissory note or retail installment contract described in
subsection (f) of this section to the extent the gross income tax
has previously been paid for the receipt of the promissory note or
retail installment contract;
(5) amounts received as withdrawal of deposits to the extent they
constitute principal;
(6) gross receipts received by corporations incorporated under the
laws of Indiana from a trade or business situated and regularly
carried on at a legal situs outside Indiana or from activities
incident to such trade or business (including the disposal of
capital assets or other properties which were acquired and used in
such trade or business);
(7) that part of a commission received by a real estate broker that
is paid within five (5) days of the receipt of the commission to a
cooperating broker or to an associated broker or salesman;
(8) amounts received by a corporation or a division of a
corporation owned, operated, or controlled by its member electric
cooperatives as payment from the electric cooperatives for
electrical energy to be resold to their member-owner consumers;
(9) amounts received by an association of members or a
corporation as:
(A) regularly paid dues, initiation fees, or membership fees
paid for social membership; and
(B) amounts paid to the organization by members if:
(i) the organization is organized not for profit;
(ii) such amounts are payable upon the death of a member
and do not exceed one dollar ($1) payable by each surviving
member at the death of any one (1) member;
(iii) the number of members who are permitted to make such
payments does not exceed one thousand seven hundred
(1,700) at any one (1) time;
(iv) the total amount paid to the beneficiary of any one (1)
deceased member does not exceed one thousand dollars
($1,000); and
(v) the amounts received are only for the purpose of paying
reasonable expenses of the organization and payments to
beneficiaries of deceased members;
(10) amounts received as the corpus of an outright gift, devise, or
bequest;
(11) cash discounts allowed and taken on sales;
(12) goods, wares, or merchandise, or the value thereof, returned
by customers if the sale price is refunded either in cash or by
credit;
(13) judgments for income that are not taxable under this article;
(14) the receipt of capital by a corporation, partnership, firm, or
joint venture from the sale of stock or shares in such corporation,
partnership, firm, or joint venture, or contributions to the capital
thereof;
(15) the gross receipts represented by the value of real or tangible
personal property received in reciprocal exchange for real or
tangible personal property of like kind by and between the owners
of the property to the extent of the value of the property or the
interest therein of which title is surrendered;
(16) the gross receipts represented by the value of stock of a
corporation or association received in a reciprocal exchange by
and between the owners of the stock (including the issuing
corporation or association) for stock in the same corporation or
association to the extent of the value of the stock or the interest
therein of which title is surrendered;
(17) the gross receipts represented by the value of bonds or
similar securities issued by a corporation or association received
in a reciprocal exchange by and between the owners of the bonds
or securities (including the issuing corporation or association) for
bonds or similar securities issued by the same corporation or
association to the extent of the value of such bonds or similar
securities or the interest therein of which title is surrendered;
(18) the gross receipts represented by the value of stocks, bonds,
or other securities received in a reciprocal exchange by and
between the owners of the stocks, bonds, or other securities for
other stocks, bonds, or other securities to the extent title is
surrendered, if the exchange is made in the course of a
consolidation, merger, or other reorganization and the stock,
bonds, or other securities received are issued by one (1) or more
corporations or associations that are each a party to the
reorganization;
(19) the gross receipts represented by the value of stocks, bonds,
or other securities received in a reciprocal exchange by and
between the owners thereof of substantially all of the assets of
another corporation if the exchange is made in the course of a
consolidation, merger, or other reorganization and the stocks,
bonds, or other securities received are issued by one (1) or more
corporations or associations that are each a party to the
reorganization;
(20) in the case of insurance carriers, amounts that become or are
used to maintain a reserve or other policy liability, to the extent
the reserve or other policy liability is required to be maintained by
the state of Indiana;
(21) in the case of domestic insurance carriers, premium income
that is derived from business conducted outside Indiana on which
the domestic carrier pays a premium tax of one percent (1%) or
more; and
(22) amounts received by a joint agency established under
IC 8-1-2.2
that constitutes a payment by a municipality that is a
member of the joint agency for electrical energy that will be sold
by the municipality to retail customers; and
(23) oil inspection fees collected by licensed gasoline
distributors under
IC 16-44-2.
(d) The exclusion provided by clause (6) of subsection (c) does not
apply to any receipts of a taxpayer received as interest or dividends,
from sales, other receipts from investments not acquired or disposed of
in connection with the taxpayer's regular business, or to bonuses or
commissions received by any taxpayer.
(e) The exclusion provided by subsection (c) clause (14) does not
apply to proceeds that are derived from subsequent transactions in
stock of such corporations or organizations or in the interest or shares
of the members of any organization.
(f) The face amount of a retail installment contract or promissory
note that is derived from the selling, providing, repairing, working with
or on, or servicing of any personal property, or any combination of the
foregoing, is includable in a taxpayer's gross income upon receipt.
However, any part of a retail installment contract or promissory note
that represents insurance premiums or consideration which the retail
buyer contracts to pay the retail seller for the privilege of paying the
principal balance in installments over a period of time is includable in
a taxpayer's gross income when received.
(g) For purposes of this section:
(1) "Exchange" means the transfer of title or ownership by means
of a transaction involving the barter or swap of property acquired
prior to the exchange, by and between the owners of that property,
with or without additional consideration. However, the term
"exchange" does not include:
(A) any sale of property even though other property is
purchased with the proceeds of the sale;
(B) any barter or swap of property where there are more than
two (2) parties to the transaction; or
(C) any transaction where the property exchanged is acquired
by one (1) party to the transaction as a result of negotiation or
arrangement with the other party with the intent of effectuating
an exchange of the property so acquired.
(2) "Like kind" means property of the same class and kind and has
no reference to the grade or quality of such property.".
SOURCE: Page 2, line 20; (00)CR137401.2. -->
Page 2, line 20, delete "five" and insert " seven".
Page 2, line 21, after "thousand" insert " five hundred".
Page 2, line 21, delete "($5,000)" and insert " ($7,500)".
Page 5, line 32, delete "five thousand dollars ($5,000)" and insert
" seven thousand five hundred dollars ($7,500)".
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Page 7, line 20, after "thousand" insert " five hundred".
Page 7, line 20, delete "($5,000)" and insert " ($7,500)".
Page 21, line 33, delete "five thousand dollars ($5,000)" and insert
" seven thousand five hundred dollars ($7,500)".
Page 22, line 27, delete "five" and insert " seven".
Page 22, line 27, after "thousand" insert " five hundred".
Page 22, line 27, delete "($5,000)" and insert " ($7,500)".
Page 27, line 26, delete "five thousand dollars ($5,000)" and insert
" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
Page 52, line 15, delete "five thousand dollars ($5,000)" and insert
" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
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" seven thousand five hundred dollars ($7,500)".
Page 60, line 38, delete "five thousand dollars ($5,000)" and insert
" seven thousand five hundred dollars ($7,500)".
Page 63, delete lines 7 through 42.
Page 64, delete lines 1 through 11.
Page 64, between lines 13 and 14, begin a new paragraph and insert:
SOURCE: IC 6-3.1-5; IC 6-3.1-6.".
; (00)CR137401.89. -->
"SECTION 89. THE FOLLOWING ARE REPEALED
[EFFECTIVE JANUARY 1, 2001]:
IC 6-3.1-5
;
IC 6-3.1-6.".
SOURCE: Page 64, line 24; (00)CR137401.64. -->
Page 64, between lines 24 and 25, begin a new paragraph and insert:
SOURCE: ; (00)CR137401.92. -->
"SECTION 92. [EFFECTIVE UPON PASSAGE]
IC 6-3-1-3.5
, as
amended by this act, applies to taxable years beginning after
December 31, 1999.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1374 as introduced.)
and when so amended that said bill do pass.
__________________________________
CR137401/DI 58 2000