Bill Text: IN SB0163 | 2012 | Regular Session | Introduced
Bill Title: Economic development incentive accountability.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2012-01-04 - First reading: referred to Committee on Commerce & Economic Development [SB0163 Detail]
Download: Indiana-2012-SB0163-Introduced.html
Citations Affected: IC 5-28; IC 6-3.1.
Effective: July 1, 2012.
January 4, 2012, read first time and referred to Committee on Commerce & Economic
Development.
Digest Continued
as part of the IEDC's annual job creation incentives and compliance
report. Requires incentive recipients to prepare an annual progress
report on the number of jobs created or retained, employee pay, and
various other information concerning the use of the job creation
incentives, and requires the IEDC to compile this information and
include it in the IEDC's annual job creation incentives and compliance
report. Repeals and replaces the definition of job creation incentive
without change to maintain alphabetical order. Makes technical
corrections.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
economic development.
(b) The term does not include a temporary job.
for the purpose of encouraging the creation of new jobs in Indiana.
(1) is first employed by the recipient of a job creation incentive at the specific project site that is the subject of the job creation incentive agreement executed by the corporation and the applicant; and
(2) is employed by the recipient of a job creation incentive after the recipient enters into the job creation incentive agreement.
(1) who has a full-time or full-time equivalent job at a specific facility or site;
(2) the continuance of whose job is threatened by a specific and demonstrable threat, as specified by the applicant in the application for a job creation incentive; and
(3) whose job is preserved.
1, 2012]: Sec. 6.5. "Temporary job" means employment in which
a new employee is hired for a specific duration of time or season.
(b) All records required to be prepared or maintained under this article, including any cost analyses, audits, recipient compliance reports, and any other records or proceedings of the corporation, must be disclosed as provided by IC 5-14-3. In addition, if the corporation contracts with an entity to perform a cost analysis as part of a determination by the corporation of whether to provide a job creation incentive and the estimated contract price exceeds twenty-five thousand dollars ($25,000), that cost analysis must be disclosed as provided by IC 5-14-3.
(1) Cooperate with federal, state, and local governments and agencies in the coordination of programs to make the best use of Indiana resources, based on a statewide study to determine specific economic sectors that should be emphasized by the state and by local economic development organizations within geographic regions in Indiana, and encourage collaboration with local economic development organizations within geographic regions in Indiana and with the various state economic development organizations within the states contiguous to Indiana.
(2) Receive and expend funds, grants, gifts, and contributions of money, property, labor, interest accrued from loans made by the corporation, and other things of value from public and private sources, including grants from agencies and instrumentalities of the state and the federal government. The corporation:
(A) may accept federal grants for providing planning assistance, making grants, or providing other services or functions necessary to political subdivisions, planning commissions, or other public or private organizations;
(B) shall administer these grants in accordance with the terms
of the grants; and
(C) may contract with political subdivisions, planning
commissions, or other public or private organizations to carry
out the purposes for which the grants were made.
(3) Direct that assistance, information, and advice regarding the
duties and functions of the corporation be given to the corporation
by an officer, agent, or employee of the executive branch of the
state. The head of any other state department or agency may
assign one (1) or more of the department's or agency's employees
to the corporation on a temporary basis or may direct a division
or an agency under the department's or agency's supervision and
control to make a special study or survey requested by the
corporation.
(b) The corporation shall perform the following duties:
(1) Develop and implement industrial development programs to
encourage expansion of existing industrial, commercial, and
business facilities in Indiana and to encourage new industrial,
commercial, and business locations in Indiana.
(2) Assist businesses and industries in acquiring, improving, and
developing overseas markets and encourage international plant
locations in Indiana. The corporation, with the approval of the
governor, may establish foreign offices to assist in this function.
(3) Promote the growth of minority business enterprises by doing
the following:
(A) Mobilizing and coordinating the activities, resources, and
efforts of governmental and private agencies, businesses, trade
associations, institutions, and individuals.
(B) Assisting minority businesses in obtaining governmental
or commercial financing for expansion or establishment of
new businesses or individual development projects.
(C) Aiding minority businesses in procuring contracts from
governmental or private sources, or both.
(D) Providing technical, managerial, and counseling assistance
to minority business enterprises.
(4) Assist the office of the lieutenant governor in:
(A) community economic development planning;
(B) implementation of programs designed to further
community economic development; and
(C) the development and promotion of Indiana's tourist
resources.
(5) Assist the secretary of agriculture and rural development in
promoting and marketing of Indiana's agricultural products and
provide assistance to the director of the Indiana state department
of agriculture.
(6) With the approval of the governor, implement federal
programs delegated to the state to carry out the purposes of this
article.
(7) Promote the growth of small businesses by doing the
following:
(A) Assisting small businesses in obtaining and preparing the
permits required to conduct business in Indiana.
(B) Serving as a liaison between small businesses and state
agencies.
(C) Providing information concerning business assistance
programs available through government agencies and private
sources.
(8) Establish a public information page on its current Internet site
on the world wide web. The page must provide the following:
(A) By program, cumulative information on the total amount
of incentives awarded, the total number of companies that
received the incentives and were assisted in a year, and the
names and addresses of those companies.
(A) The job creation incentives and compliance report
required by IC 5-28-28-5.
(B) A mechanism on the page whereby the public may request
further information online about specific programs or
incentives awarded.
(C) A mechanism for the public to receive an electronic
response.
(c) The corporation may do the following:
(1) Disseminate information concerning the industrial,
commercial, governmental, educational, cultural, recreational,
agricultural, and other advantages of Indiana.
(2) Plan, direct, and conduct research activities.
(3) Assist in community economic development planning and the
implementation of programs designed to further community
economic development.
(1) The number of individuals that are expected to be employed by the applicant.
(2) A requirement that the applicant will file with the compliance officer an annual compliance report
(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 is 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.
(4) A
(A) moves or closes;
(B) does not make the level of capital investment specified by the applicant in the application for the job creation incentive;
(C) employs fewer individuals than specified by the applicant in the application for the job creation incentive; or
(D) pays less in wages than specified by the applicant in the application for the job creation incentive.
(1)
(A) the governor; and
(B) the legislative council in an electronic format under IC 5-14-6; and
(2) publish the report on the corporation's Internet web site and on the Indiana transparency portal Internet web site.
(b)
compliance report that covers the six (6) month period that ends one
(1) month before the report is due. After August 1, 2009, The
corporation shall submit and publish before August 1 of each year an
the job creation incentives and compliance report that covers under
subsection (a) before August 1 of each year. The report must cover
the twelve (12) month period that ends one (1) month before the report
is due. immediately preceding July 1 through June 30 period.
(1) The total amount of each of the following:
(A) Tax credits approved or awarded by the corporation, including the aggregate amount of uncollected or diverted state tax revenues resulting from each tax credit, as reported to the department of state revenue on tax returns filed during the state fiscal year that ends immediately before the due date of the report. Before July 15 each year, the department of state revenue shall submit to the corporation the information necessary for the corporation to include these aggregate amounts in the corporation's report.
(B) Loans made by the corporation.
(C) Grants made by the corporation.
(2) With respect to each recipient of a tax credit, loan, or grant referred to in subdivision (1):
(A) The name and address of the recipient.
(B) The amount of the tax credit, loan, or grant.
(C) The purpose of the tax credit, loan, or grant.
(D) Representations of the following made by the recipient at the time of application for the tax credit, loan, or grant:
(i) Numbers of employees to be hired, retained, or trained.
(ii) Certification by the corporation that each recipient is meeting the program requirements and representations made in the recipient's application concerning the wages and compensation provided to employees who have been or are to be hired, trained, or retrained.
(iii) Other benefits to be provided to employees to be hired, retained, or trained.
(E) The extent to which the recipient has complied with the representations referred to in clause (D).
(3) A summary of the information submitted by certified technology parks as part of the corporation's review under IC 36-7-32-11.
(4) All data in all of the compliance reports submitted under section 10 of this chapter.
(5) By program, cumulative information on the total amount of job creation incentives awarded, the total number of companies that received the job creation incentives and were assisted in a year, and the names and addresses of those companies.
(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, 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.
(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
(1) natural disaster;
(2) unforeseen industry trends;
(3) lack of available labor force;
(4) loss of a major supplier or market; or
(5) another circumstance beyond the recipient's control, as determined by the corporation.
(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, including a description of the outcomes and effectiveness of recapture provisions, organized by the job creation incentive program, along with at least the following information:
(A) The total number of companies receiving a job creation incentive.
(B) The total number of recipients in violation of a job creation incentive agreement.
(C) The total number of recapture efforts initiated.
(D) The total number of recapture efforts completed.
(E) The number of recapture waivers granted.
(b) Upon request, the corporation shall make available as a public record under IC 5-14-3:
(1) information 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, 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;
(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.
(1) Each application tracking number.
(2) The recipient's:
(A) office mailing address;
(B) telephone number; and
(C) six (6) digit North American Industry Classification System (NAICS) code assigned to industries in the NAICS Manual of the United States Office of Management and Budget;
and the name of the recipient's chief officer or authorized designee for the specific project site for which the job creation incentive was approved.
(3) The job creation incentive program and value of the job creation incentive that was approved by the corporation.
(4) The total number of the recipient's employees at the specific project site on the date on which the application was submitted to the corporation, and total number of the recipient's employees at the specific project site on the date of
the report, including, for each date:
(A) the number of employees with full-time, permanent
jobs;
(B) the number of employees with part-time jobs; and
(C) the number of employees with temporary jobs;
and a computation of the increase or decrease in the number
of employees within each category set forth in clauses (A)
through (C) between the date of submission of the application
and the date of the report.
(5) The number of:
(A) jobs for new employees that the recipient promised in
the job creation incentive agreement it would create; and
(B) jobs for retained employees that the recipient promised
in the job creation incentive agreement it would preserve;
broken down by full-time, permanent jobs, part-time jobs,
and temporary jobs.
(6) A declaration of whether the recipient is in compliance
with each term and condition of the job creation incentive
agreement.
(7) The following for the full-time, permanent jobs that the
recipient created or retained as a result of the job creation
incentive:
(A) A detailed list of:
(i) the occupations; or
(ii) job classifications;
of the jobs.
(B) A schedule of the starting dates for the new employees
hired for the jobs.
(C) The actual average wage paid to the employees with
the jobs, broken down by occupation or job classification.
(D) The total payroll for the new employees and retained
employees with these jobs.
(8) A narrative, if necessary, stating whether and, if so, how
the recipient's use of the job creation incentive during the
reporting year has reduced unemployment at any site in
Indiana.
(9) A certification by the chief officer of the recipient or the
chief officer's authorized designee that the information in the
compliance report contains no knowing misrepresentation of
material facts upon which eligibility for the job creation
incentive is based.
(10) Any other information the corporation considers
necessary to ensure compliance with a job creation incentive
program.
(b) The corporation may verify information contained in the
recipient's compliance report, including inspecting the specific
project site and inspecting the records of the recipient that relate
to the job creation incentive agreement.
(c) If a recipient of a job creation incentive fails to comply with
subsection (a), the corporation shall suspend all current job
creation incentives being provided to the recipient, effective the
immediately following October 1. In addition, the corporation is
prohibited from completing any current job creation incentive or
providing any future job creation incentive until the corporation
receives proof that the recipient has complied with subsection (a).
(b) If a taxpayer receives a credit under this chapter and does not make the qualified investment (or a part of the qualified investment) for which the credit was granted within the time required by subsection (a), the corporation
(1) The additional amount of state tax liability that would have been paid by the taxpayer if the credit had not been granted for the qualified investment (or part of the qualified investment) that was not made by the taxpayer within the time required by subsection (a).
(2) Interest at a rate established under IC 6-8.1-10-1(c) on the additional amount of state tax liability referred to in subdivision (1).
(1) disallow the use of all or a part of any unused tax credit
granted to the taxpayer (or any successor in interest of the
taxpayer) under this chapter;
(2) recapture all or a part of the tax credit under this chapter that
has been applied to the state tax liability of the taxpayer (or any
successor in interest of the taxpayer); or
(3) both disallow the tax credit under subdivision (1) and
recapture the tax credit under subdivision (2).
(b) A taxpayer may not receive a credit under this chapter unless the
taxpayer:
(1) consents that the taxpayer (and any successor in interest of the
taxpayer) will be subject to the jurisdiction of Indiana courts;
(2) consents that service of process in accordance with the Indiana
Rules of Trial Procedure is proper service and subjects the
taxpayer (and any successor in interest of the taxpayer) to the
jurisdiction of Indiana courts; and
(3) consents that any civil action related to the provisions of this
chapter and in which the taxpayer (or any successor in interest of
the taxpayer) is a party will be heard in an Indiana court.
