Introduced Version




SENATE BILL No. 163

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 5-28; IC 6-3.1.

Synopsis: Economic development incentive accountability. Adds various job and employee definitions to the Indiana economic development corporation (IEDC) laws. Requires all records related to taxpayer funded economic development incentives to be disclosed under the open records law. Requires the IEDC's annual job creation incentives and compliance report to be published on the Indiana transparency portal Internet web site. Requires the IEDC and the department of state revenue to compile information on all job creation incentives granted, including the aggregate amount of uncollected or diverted state tax revenues resulting from each incentive, and requires this information to be included as part of the IEDC's annual job creation incentives and compliance report. Requires the IEDC to recapture incentives from a recipient failing to make the level of capital investment, failing to create or retain the promised number of jobs, or paying less in wages than specified in the agreement. Requires the IEDC to compile information on all recapture activities and incentives recouped from unfulfilled commitments and to include the information
(Continued next page)

Effective: July 1, 2012.



Randolph, Arnold, Breaux, Broden, Hume, Lanane, Mrvan, Rogers, Simpson, Skinner, Tallian, Taylor, Young R


    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.



Introduced

Second Regular Session 117th General Assembly (2012)


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 this style type.
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 this style type reconciles conflicts between statutes enacted by the 2011 Regular Session of the General Assembly.

SENATE BILL No. 163


    A BILL FOR AN ACT to amend the Indiana Code concerning economic development.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 5-28-2-4.1; (12)IN0163.1.1. -->     SECTION 1. IC 5-28-2-4.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 4.1. "Full-time employee" has the meaning set forth in IC 6-3.1-13-4.
SOURCE: IC 5-28-2-4.2; (12)IN0163.1.2. -->     SECTION 2. IC 5-28-2-4.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 4.2. (a) "Full-time, permanent job" means employment in which a new employee works for the recipient of a job creation incentive as a full-time employee without any expected date of termination.
     (b) The term does not include a temporary job.
SOURCE: IC 5-28-2-4.5; (12)IN0163.1.3. -->     SECTION 3. IC 5-28-2-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 4.5. "Job creation incentive" means a tax credit, tax deduction, grant, loan, or loan guarantee that a statute authorizes the state or an instrumentality of the state (excluding any political subdivision or other unit of local government) to award or approve

for the purpose of encouraging the creation of new jobs in Indiana.

SOURCE: IC 5-28-2-4.6; (12)IN0163.1.4. -->     SECTION 4. IC 5-28-2-4.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 4.6. "Job creation incentive agreement" or "incentive agreement" means any agreement executed by the corporation and the recipient of a job creation incentive setting forth the terms and conditions of any job creation incentive to be provided to the recipient.
SOURCE: IC 5-28-2-4.7; (12)IN0163.1.5. -->     SECTION 5. IC 5-28-2-4.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 4.7. "New employee" means a full-time employee who:
        (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.
SOURCE: IC 5-28-2-4.8; (12)IN0163.1.6. -->     SECTION 6. IC 5-28-2-4.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 4.8. "Part-time job" means employment in which a new employee works for the recipient of a job creation incentive for fewer hours each week than the number of hours necessary to be considered a full-time employee.
SOURCE: IC 5-28-2-4.9; (12)IN0163.1.7. -->     SECTION 7. IC 5-28-2-4.9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 4.9. "Retained employee" means any employee:
        (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.
SOURCE: IC 5-28-2-5.5; (12)IN0163.1.8. -->     SECTION 8. IC 5-28-2-5.5 IS REPEALED [EFFECTIVE JULY 1, 2012] . Sec. 5.5. "Job creation incentive" means a tax credit, tax deduction, grant, loan, or loan guarantee that a statute authorizes the state or an instrumentality of the state (excluding any political subdivision or other unit of local government) to award or approve for the purpose of encouraging the creation of new jobs in Indiana.
SOURCE: IC 5-28-2-6.5; (12)IN0163.1.9. -->     SECTION 9. IC 5-28-2-6.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY

1, 2012]: Sec. 6.5. "Temporary job" means employment in which a new employee is hired for a specific duration of time or season.

SOURCE: IC 5-28-5-9; (12)IN0163.1.10. -->     SECTION 10. IC 5-28-5-9, AS ADDED BY P.L.4-2005, SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 9. (a) Except as specifically provided by law, the corporation and the board are subject to IC 5-14-1.5 and IC 5-14-3.
     (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.
SOURCE: IC 5-28-6-2; (12)IN0163.1.11. -->     SECTION 11. IC 5-28-6-2, AS AMENDED BY P.L.114-2011, SECTION 4, AND AS AMENDED BY P.L.172-2011, SECTION 24, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2. (a) The corporation shall develop and promote programs designed to make the best use of Indiana resources to ensure a balanced economy and continuing economic growth for Indiana, and, for those purposes, may do the following:
        (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.

SOURCE: IC 5-28-6-6; (12)IN0163.1.12. -->     SECTION 12. IC 5-28-6-6, AS ADDED BY P.L.110-2010, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 6. The corporation shall require an applicant for a job creation incentive to be granted by the corporation after March 31, 2010, to enter into an a job creation incentive 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 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 detailing the applicant's compliance, or progress toward compliance, with subdivision (1). as required by IC 5-28-28-10.
        (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 requirement that recapture provision requiring the applicant will to pay back to the state the job creation incentive that has been received by the applicant if the applicant:
             (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.
SOURCE: IC 5-28-28-5; (12)IN0163.1.13. -->     SECTION 13. IC 5-28-28-5, AS ADDED BY P.L.222-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 5. (a) Beginning February 1, 2008, the corporation shall:
        (1) submit an economic prepare an annual job creation incentives and compliance report for submission to:
            (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.
on the schedule specified in subsection (b).
    (b) Before August 2, 2009, the corporation shall submit and publish before February 1 and August 1 of each year an incentives and

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.

SOURCE: IC 5-28-28-6; (12)IN0163.1.14. -->     SECTION 14. IC 5-28-28-6, AS ADDED BY P.L.222-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 6. The economic job creation incentives and compliance report required under section 5 of this chapter must include at least the following:
        (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.
SOURCE: IC 5-28-28-7; (12)IN0163.1.15. -->     SECTION 15. IC 5-28-28-7, AS AMENDED BY P.L.110-2010, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 7. (a) If, in the course of compiling information to complete a job creation incentives and compliance 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 subsection (b) and or (d), whichever applies.
    (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.

SOURCE: IC 5-28-28-8; (12)IN0163.1.16. -->     SECTION 16. IC 5-28-28-8, AS ADDED BY P.L.110-2010, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 8. (a) As used in this section, "recapture provision" means language that requires the recipient of an a job creation 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 a job creation incentive if the corporation determines that the recipient of an the 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;
        (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; (12)IN0163.1.17. -->     SECTION 17. IC 5-28-28-9, AS ADDED BY P.L.110-2010, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 9. (a) Beginning in 2010, the economic job creation incentives and compliance report required under section 5 of this chapter must include an annual report a part containing a summary of annual statistics on the effectiveness of and compliance with all incentives granted by the corporation. The part of the job creation incentives and compliance 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, 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.
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 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.
SOURCE: IC 5-28-28-10; (12)IN0163.1.18. -->     SECTION 18. IC 5-28-28-10 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 10. (a) Before July 15 each year, each recipient of a job creation incentive shall submit to the corporation an annual compliance report covering the immediately preceding July 1 through June 30 period. A recipient that is a party to multiple job creation incentive agreements for a single project site may file a consolidated compliance report. A compliance report must include at least the following information:
        (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).

SOURCE: IC 6-3.1-13.5-12; (12)IN0163.1.19. -->     SECTION 19. IC 6-3.1-13.5-12, AS AMENDED BY P.L.4-2005, SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 12. (a) If a taxpayer receives a credit under this chapter, the equipment, machinery, facilities improvements, facilities, buildings, or foundations for which the credit was granted must be fully installed or completed not more than five (5) years after the corporation issues a letter under section 10 of this chapter certifying that the taxpayer is entitled to claim the credit.
    (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 may shall require the taxpayer to repay the following:
        (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).
SOURCE: IC 6-3.1-32-19; (12)IN0163.1.20. -->     SECTION 20. IC 6-3.1-32-19, AS ADDED BY P.L.235-2007, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 19. (a) If a taxpayer (or any successor in interest of the taxpayer) fails to satisfy any condition of this chapter or any condition in an agreement under section 13 of this chapter, or fails to file tax returns as required by section 18 of this chapter, the corporation may: shall:
        (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.