*EH1288.1*

February 21, 2018

ENGROSSEDHOUSE BILL No. 1288

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DIGEST OF HB 1288 (Updated February 20, 2018 11:12 am - DI 73)

Citations Affected: IC 5-28; IC 6-3.1; IC 6-8.1; IC 35-52; IC 36-7.

Synopsis: Economic development. Provides that, if the Indianaeconomic development corporation (IEDC) determines that a business,school corporation, or charter school (entity) that has received a grantaward under the skills enhancement fund program is noncompliantwith the terms of its grant agreement, the IEDC shall, after givingnotice to the entity and an opportunity to explain the noncompliance,provide the entity with a written demand for return or repayment of anamount not to exceed the sum of all grants previously awarded to theentity. Provides that, if the entity fails to repay the IEDC, the IEDC maynotify the department of state revenue (department) of thenoncompliance and request that the department exercise its authorityunder the department's refund set off program to recover the sum of allgrants previously awarded to the entity. Provides that the IEDC isauthorized to participate in the refund set off program. Provides for the

(Continued next page)

Effective: July 1, 2018; January 1, 2019.

Torr, Candelaria Reardon, Morris,Pressel, Austin

(SENATE SPONSORS — RAATZ, SPARTZ, NIEZGODSKI)

January 16, 2018, read first time and referred to Committee on Commerce, Small Businessand Economic Development.

January 25, 2018, amended, reported — Do Pass.January 31, 2018, read second time, amended, ordered engrossed.February 1, 2018, engrossed.February 5, 2018, read third time, passed. Yeas 91, nays 0.

SENATE ACTIONFebruary 7, 2018, read first time and referred to Committee on Tax and Fiscal Policy.February 20, 2018, amended, reported favorably — Do Pass.

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Digest Continued

expiration of provisions in the enterprise zone statute relating to thefunctions of the IEDC, and authorizes similar functions to beperformed by: (1) the urban enterprise association (U.E.A.) in theenterprise zone; and (2) the fiscal body of the municipality in which theenterprise zone is located. Provides for the expiration of the provisionthat requires a zone business to pay a registration fee to the IEDC.Eliminates the enterprise zone fund. Provides that any moneyremaining in the fund after its expiration shall revert to the economicdevelopment fund. Retains provisions in current law that require eachzone business that receives an incentive to assist the U.E.A. in theenterprise zone in an amount determined by the legislative body of themunicipality (legislative body) in which the zone business is located.Provides that the legislative body may pass an ordinance disqualifyinga zone business from eligibility for incentives if the zone business doesnot assist the U.E.A. Provides that the legislative body may, in certaincircumstances, impose an additional fee that is equal to 1% of all thezone business's incentives. Authorizes the U.E.A. in an enterprise zoneto do the following: (1) Adopt guidelines for the disqualification of azone business. (2) Modify the boundaries of the enterprise zone.Provides that the board of the IEDC may not renew an enterprise zoneduring a phase out period after June 30, 2018. Provides that anenterprise zone that was not renewed under those provisions betweenJanuary 1, 2017, and June 30, 2018, may be renewed for an additionalfive year period if the fiscal body of the municipality adopts aresolution to renew the enterprise zone for an additional five yearperiod. Amends the definition of "lender" under the capital accessprogram for the period beginning after June 30, 2018, and endingbefore July 1, 2021, to include: (1) a credit corporation; and (2) otherspecified entities that are approved as a lender by the IEDC inaccordance with policy guidelines adopted by the board of the IEDC.Decreases the minimum premium charges payable to the reserve fundaccount for the capital access program from 1.5% to 1%. Repeals andreplaces the definition of "disadvantaged business enterprise" used forpurposes of determining the premium charges payable to a reserve fundaccount to incorporate the definition of "small disadvantaged business"under the federal regulation that applies to the United States SmallBusiness Administration. Repeals the statute authorizing thedepartment to carry out a centralized debt collection program for useby state agencies to collect delinquent amounts owed to state agencies.Makes conforming changes.

EH 1288—LS 6968/DI 120EH 1288—LS 6968/DI 120

February 21, 2018

Second Regular Session of the 120th General Assembly (2018)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the IndianaConstitution) 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 constitutionalprovision adopted), the text of the new provision will appear in this style type. Also, theword NEW will appear in that style type in the introductory clause of each SECTION that addsa 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 conflictsbetween statutes enacted by the 2017 Regular Session of the General Assembly.

ENGROSSEDHOUSE BILL No. 1288

A BILL FOR AN ACT to amend the Indiana Code concerning stateand local administration.

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

1 SECTION 1. IC 5-28-7-5, AS AMENDED BY P.L.237-2017,2 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE3 JULY 1, 2018]: Sec. 5. (a) The skills enhancement fund is established4 within the state treasury to be used exclusively for the purposes of this5 chapter.6 (b) The fund consists of:7 (1) appropriations from the general assembly; and8 (2) money repaid to the corporation under section 7 of this9 chapter.

10 (c) The corporation shall administer the fund. The following may be11 paid from money in the fund:12 (1) Expenses of administering the fund.13 (2) Nonrecurring administrative expenses incurred to carry out the14 purposes of this chapter.15 (d) The treasurer of state shall invest the money in the fund not

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1 currently needed to meet the obligations of the fund in the same2 manner as other public funds may be invested. Interest that accrues3 from these investments shall be deposited in the fund.4 SECTION 2. IC 5-28-7-7 IS ADDED TO THE INDIANA CODE5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY6 1, 2018]: Sec. 7. (a) If the corporation determines that a business,7 school corporation, or charter school that has received public8 funds from a grant award under this chapter is not entitled to the9 public funds received from the grant award because of the

10 business's, school corporation's, or charter school's noncompliance11 with the requirements of its grant agreement or any of the12 provisions of this chapter, the corporation shall, after giving notice13 to the business, school corporation, or charter school and an14 opportunity to explain the noncompliance, provide the business,15 school corporation, or charter school with a written demand for16 the return or repayment of an amount not to exceed the sum of all17 grants previously awarded to the business, school corporation, or18 charter school under this chapter, together with interest and19 penalties required or permitted by law or required by the20 agreement with the corporation.21 (b) Upon receipt of the corporation's written demand under22 subsection (a), the business, school corporation, or charter school23 shall return or repay the amount demanded by the corporation.24 (c) If a business, school corporation, or charter school fails to25 repay the corporation as required under subsection (b), the26 corporation may notify the department of state revenue of the27 noncompliance and request that the department of state revenue28 exercise the department's authority under IC 6-8.1-9.5 to recover29 the sum of all grants previously awarded to the business, school30 corporation, or charter school under this chapter, together with31 any interest, penalties, and fees required or permitted by law or32 required by the agreement with the corporation.33 (d) For purposes of this chapter, the corporation shall be34 considered a claimant agency under IC 6-8.1-9.5-1, and is35 authorized to participate in the refund set off program under36 IC 6-8.1-9.5.37 SECTION 3. IC 5-28-15-5, AS AMENDED BY P.L.145-2016,38 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE39 JULY 1, 2018]: Sec. 5. (a) The board has the following powers, in40 addition to other powers that are contained in this chapter:41 (1) Before July 1, 2018, to review and approve or reject all42 applicants for enterprise zone designation, according to the

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1 criteria for designation that this chapter provides.2 (2) To waive or modify rules as provided in this chapter.3 (3) To adopt rules for the disqualification of a zone business from4 eligibility for any or all incentives available to zone businesses,5 if that zone business does not do one (1) of the following:6 (A) If all its incentives, as contained in the summary required7 under section 7 of this chapter, exceed one thousand dollars8 ($1,000) in any year, pay a registration fee to the corporation9 in an amount equal to one percent (1%) of all its incentives.

10 (B) Use all its incentives, except for the amount of the11 registration fee, for its property or employees in the zone.12 (C) Remain open and operating as a zone business for twelve13 (12) months of the assessment year for which the incentive is14 claimed.15 (4) After a recommendation from a U.E.A., to modify an16 enterprise zone boundary if the board determines that the17 modification:18 (A) is in the best interests of the zone; and19 (B) meets the threshold criteria and factors set forth in section20 9 of this chapter.21 (5) To employ staff and contract for services.22 (b) In addition to a registration fee paid under subsection (a)(3)(A),23 each zone business that receives an incentive described in section 3 of24 this chapter shall assist the zone U.E.A. in an amount determined by25 the legislative body of the municipality in which the zone is located. If26 a zone business does not assist a U.E.A., the legislative body of the27 municipality in which the zone is located may pass an ordinance28 disqualifying a zone business from eligibility for all credits or29 incentives available to zone businesses. If a legislative body30 disqualifies a zone business under this subsection, the legislative body31 shall notify the corporation, the department of local government32 finance, and the department of state revenue in writing not more than33 thirty (30) days after the passage of the ordinance disqualifying the34 zone business. Disqualification of a zone business under this section is35 effective beginning with the taxable year in which the ordinance36 disqualifying the zone business is adopted.37 (c) This section expires December 31, 2018.38 SECTION 4. IC 5-28-15-5.5, AS ADDED BY P.L.204-2016,39 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE40 JULY 1, 2018]: Sec. 5.5. (a) The corporation has the following powers,41 in addition to the other powers that are contained in this chapter:42 (1) To provide a procedure by which enterprise zones may be

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1 monitored and evaluated on an annual basis.2 (2) To disqualify a zone business from eligibility for any or all of3 the incentives available to zone businesses.4 (3) To receive funds from any source and expend the funds for the5 administration and promotion of the enterprise zone program.6 (4) To make determinations under IC 6-3.1-11 concerning the7 designation of locations as industrial recovery sites.8 (5) To enter into agreements under IC 6-3.1-11 with an applicant9 for a tax credit under that chapter.

10 (b) This section expires December 31, 2018.11 SECTION 5. IC 5-28-15-5.7 IS ADDED TO THE INDIANA CODE12 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE13 JANUARY 1, 2019]: Sec. 5.7. (a) Beginning after December 31,14 2018, a zone U.E.A. has the following powers, in addition to other15 powers that are contained in this chapter:16 (1) To request the waiver of a municipal ordinance or17 regulation as provided in section 14(c) of this chapter.18 (2) To adopt guidelines for the disqualification of a zone19 business from eligibility for one (1) or more incentives20 available to zone businesses, if the zone business does not do21 one (1) of the following:22 (A) Use all its incentives for its property or employees in23 the zone.24 (B) Remain open and operating as a zone business for25 twelve (12) months of the year for which the incentive is26 claimed.27 (3) To modify the boundary of the zone if the legislative body28 determines that the modification is in the best interests of the29 zone.30 (4) To employ staff and contract for services to carry out this31 chapter.32 (b) Each zone business that receives an incentive described in33 section 3 of this chapter shall assist the zone U.E.A. in an amount34 determined by the legislative body of the municipality in which the35 zone business is located. If a zone business does not assist the zone36 U.E.A. as required under this subsection, the legislative body of the37 municipality in which the zone is located may pass an ordinance38 disqualifying the zone business from eligibility for all incentives39 available to the zone businesses. If all of a zone business's40 incentives exceed one thousand dollars ($1,000) in a year, the41 legislative body of the municipality may, at the request of the zone42 U.E.A., impose an additional fee on a zone business to be paid to

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1 the zone U.E.A. in an amount equal to one percent (1%) of all its2 incentives to be used exclusively for the zone U.E.A.'s3 administrative expenses.4 (c) If a legislative body disqualifies a zone business under5 subsection (b), the legislative body shall notify the department of6 local government finance and the department of state revenue in7 writing not more than thirty (30) days after the passage of the8 ordinance disqualifying the zone business. Disqualification of a9 zone business under this section is effective beginning with the

10 taxable year in which the ordinance disqualifying the zone business11 is adopted.12 SECTION 6. IC 5-28-15-6, AS ADDED BY P.L.214-2005,13 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE14 JULY 1, 2018]: Sec. 6. (a) The enterprise zone fund is established15 within the state treasury.16 (b) The fund consists of:17 (1) the revenue from the registration fee required under section 518 of this chapter; and19 (2) appropriations from the general assembly.20 (c) The corporation shall administer the fund. The fund may be used21 to:22 (1) pay the expenses of administering the fund;23 (2) pay nonrecurring administrative expenses of the enterprise24 zone program;25 (3) provide grants to U.E.A.s for brownfield remediation in26 enterprise zones; and27 (4) pay administrative expenses of urban enterprise associations.28 However, money in the fund may not be expended unless it has been29 appropriated by the general assembly and allotted by the budget30 agency.31 (d) The treasurer of state shall invest the money in the fund not32 currently needed to meet the obligations of the fund in the same33 manner as other public funds may be invested. Interest that accrues34 from these investments shall be deposited in the state general fund.35 (e) Money in the fund at the end of a state fiscal year does not revert36 to the state general fund. The corporation shall develop appropriate37 applications and may develop grant allocation guidelines, without38 complying with IC 4-22-2, for awarding grants under this subsection.39 The grant allocation guidelines must take into consideration the40 competitive impact of brownfield redevelopment plans on existing zone41 businesses.42 (f) Any money remaining in the fund upon the expiration of this

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1 section shall be transferred to the economic development fund2 established under IC 5-28-8-5.3 (g) This section expires December 31, 2018.4 SECTION 7. IC 5-28-15-7, AS AMENDED BY P.L.145-2016,5 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE6 JULY 1, 2018]: Sec. 7. (a) Subject to subsections (c) and (d), a zone7 business that claims any of the incentives available to zone businesses8 shall, before June 1 of each year:9 (1) submit to the corporation and to the zone U.E.A., on a form

10 prescribed by the corporation, a verified summary concerning the11 amount of tax credits and exemptions claimed by the business in12 the preceding year; and13 (2) pay the amount specified in section 5(a)(3) of this chapter to14 the corporation.15 (b) In order to determine the accuracy of the summary submitted16 under subsection (a), the corporation is entitled to obtain copies of a17 zone business's tax records directly from the department of state18 revenue, the department of local government finance, or a county19 official, notwithstanding any other law. A summary submitted to the20 corporation or a zone U.E.A., or a record obtained by the corporation21 under this section is confidential. A U.E.A. member, an agent of a22 U.E.A. member, or an employee of the corporation who knowingly or23 intentionally discloses information that is confidential under this24 section commits a Class A misdemeanor.25 (c) The corporation may grant one (1) extension of the time allowed26 to comply with subsection (a) under the provisions of this subsection.27 To qualify for an extension, a zone business must apply to the28 corporation before June 1. The application must be in the form29 specified by the corporation. The extension may not exceed forty-five30 (45) days under rules adopted by the board under IC 4-22-2.31 (d) If a zone business that did not comply with subsection (a) before32 June 1 and did not file for an extension under subsection (c) before33 June 1 complies with subsection (a) before July 16, the amount of the34 tax credit and exemption incentives for the preceding year that were35 otherwise available to the zone business because the business was a36 zone business are waived, unless the zone business pays to the37 corporation a penalty of:38 (1) an amount not to exceed seven percent (7%), for the first39 instance of noncompliance; or40 (2) fifteen percent (15%), for the second instance of41 noncompliance and each subsequent instance;42 of the amount of the tax credit and exemption incentives for the

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1 preceding year that were otherwise available to the zone business2 because the business was a zone business. A zone business that pays a3 penalty under this subsection for a year must pay the penalty to the4 corporation before July 16 of that year. The corporation shall deposit5 any penalty payments received under this subsection in the enterprise6 zone fund.7 (e) This subsection is in addition to any other sanction imposed by8 subsection (d) or any other law. If a zone business fails to comply with9 subsection (a) before July 16 and does not pay any penalty required

10 under subsection (d) before July 16 of that year, the zone business is:11 (1) denied all the tax credit and exemption incentives available to12 a zone business because the business was a zone business for that13 year; and14 (2) disqualified from further participation in the enterprise zone15 program under this chapter until the zone business:16 (A) petitions the board for readmission to the enterprise zone17 program under this chapter; and18 (B) pays a civil penalty of one hundred dollars ($100).19 (f) This section expires December 31, 2018.20 SECTION 8. IC 5-28-15-7.3 IS ADDED TO THE INDIANA CODE21 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY22 1, 2018]: Sec. 7.3. (a) A zone business that claims any of the23 incentives available to zone businesses shall, before June 1 of each24 year:25 (1) submit to the zone U.E.A., on a form prescribed by the26 zone U.E.A., a verified summary concerning the amount of tax27 credits and exemptions claimed by the zone business in the28 preceding year; and29 (2) pay the amount specified in section 5.7(b) of this chapter30 to the zone U.E.A.31 (b) A zone U.E.A. may as provided in this subsection grant one32 (1) extension of the time allowed to comply with subsection (a). To33 qualify for an extension, a zone business must apply to the zone34 U.E.A. before June 1. The application must be in the form specified35 by the zone U.E.A. The extension granted by the zone U.E.A. may36 not exceed forty-five (45) days.37 (c) If a zone business fails to comply with the requirements of38 subsection (a) before June 1 (or before July 16 if an extension is39 granted under subsection (b)), the zone U.E.A. may:40 (1) deny all the tax credit and exemption incentives available41 to the zone business because the business was a zone business42 for that year; and

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1 (2) disqualify the zone business from further participation in2 the enterprise zone program under this chapter until the zone3 business:4 (A) petitions the zone U.E.A. for readmission to the5 enterprise zone program under this chapter; and6 (B) pays the amount required under section 5.7(b) of this7 chapter.8 SECTION 9. IC 5-28-15-7.5 IS ADDED TO THE INDIANA CODE9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE

10 JANUARY 1, 2019]: Sec. 7.5. A summary submitted to the11 corporation or a zone U.E.A. under section 7 of this chapter (before12 its expiration on December 31, 2018), or a record obtained by the13 corporation under section 7 of this chapter (before its expiration on14 December 31, 2018) is confidential. A U.E.A. member, an agent of15 a U.E.A. member, or an employee of the corporation who16 knowingly or intentionally discloses information that is17 confidential under this section commits a Class A misdemeanor.18 SECTION 10. IC 5-28-15-9, AS AMENDED BY P.L.145-2016,19 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE20 JULY 1, 2018]: Sec. 9. (a) The board may designate up to ten (10)21 enterprise zones, in addition to any enterprise zones the federal22 government may designate in Indiana. The board may by seven (7)23 affirmative votes increase the number of enterprise zones above ten24 (10), but it may not add more than two (2) new zones each year25 (excluding any zone that may be added by the board in a municipality26 in which a previously designated zone has expired) and may not add27 any new zones after December 31, 2015. There may not be more than28 one (1) enterprise zone in any municipality.29 (b) After approval by resolution of the legislative body, the30 executive of any municipality that is not an included town under31 IC 36-3-1-7 may submit one (1) application to the corporation to have32 one (1) part of the municipality designated as an enterprise zone. If an33 application is denied, the executive may submit a new application. The34 corporation shall provide application procedures.35 (c) Before July 1, 2018, the corporation shall evaluate an enterprise36 zone application if it finds that the following threshold criteria exist in37 a proposed zone:38 (1) A poverty level in which twenty-five percent (25%) of the39 households in the zone are below the poverty level as established40 by the most recent United States census or an average rate of41 unemployment for the most recent eighteen (18) month period for42 which data is available that is at least one and one-half (1 1/2)

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1 times the average statewide rate of unemployment for the same2 eighteen (18) month period.3 (2) A population of more than two thousand (2,000) but less than4 ten thousand five hundred (10,500).5 (3) An area of more than three-fourths (3/4) of a square mile but6 less than four (4) square miles, with a continuous boundary (using7 natural, street, or highway barriers when possible) entirely within8 the applicant municipality. However, if the zone includes a parcel9 of property that:

10 (A) is owned by the municipality; and11 (B) has an area of at least twenty-five (25) acres;12 the area of the zone may be increased above the four (4) square13 mile limitation by an amount not to exceed the area of the14 municipally owned parcel.15 (4) Property suitable for the development of a mix of commercial,16 industrial, and residential activities.17 (5) The appointment of a U.E.A. that meets the requirements of18 section 13 of this chapter.19 (6) A statement by the applicant indicating its willingness to20 provide certain specified economic development incentives.21 (d) If an applicant has met the threshold criteria of subsection (c),22 the board shall evaluate the application, arrive at a decision based on23 the following factors, and either designate a zone or reject the24 application:25 (1) Level of poverty, unemployment, and general distress of the26 area in comparison with other applicant and nonapplicant27 municipalities and the expression of need for an enterprise zone28 over and above the threshold criteria of subsection (c).29 (2) Evidence of support for designation by residents, businesses,30 and private organizations in the proposed zone, and the31 demonstration of a willingness among those zone constituents to32 participate in zone area revitalization.33 (3) Efforts by the applicant municipality to reduce the34 impediments to development in the zone area where necessary,35 including but not limited to the following:36 (A) A procedure for streamlining local government regulations37 and permit procedures.38 (B) Crime prevention activities involving zone residents.39 (C) A plan for infrastructure improvements capable of40 supporting increased development activity.41 (4) Significant efforts to encourage the reuse of existing zone42 structures in new development activities to preserve the existing

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1 character of the neighborhood, where appropriate.2 (5) The proposed managerial structure of the zone and the3 capacity of the U.E.A. to carry out the goals and purposes of this4 chapter.5 (e) This section expires December 31, 2018.6 SECTION 11. IC 5-28-15-10, AS AMENDED BY P.L.238-2017,7 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE8 JULY 1, 2018]: Sec. 10. (a) Subject to subsection (b), an enterprise9 zone expires ten (10) years after the day on which it is designated by

10 the board.11 (b) In the period beginning December 1, 2008, and ending12 December 31, 2014, an enterprise zone does not expire under this13 section if the fiscal body of the municipality in which the enterprise14 zone is located adopts a resolution renewing the enterprise zone for an15 additional five (5) years. An enterprise zone may be renewed under this16 subsection regardless of the number of times the enterprise zone has17 been renewed under subsections (d) and (e). A municipal fiscal body18 may adopt a renewal resolution and submit a copy of the resolution to19 the corporation:20 (1) before August 1, 2009, in the case of an enterprise zone that21 expired after November 30, 2008, or is scheduled to expire before22 September 1, 2009; or23 (2) at least thirty (30) days before the expiration date of the24 enterprise zone, in the case of an enterprise zone scheduled to25 expire after August 31, 2009.26 If an enterprise zone is renewed under this subsection after having been27 renewed under subsection (e), the enterprise zone may not be renewed28 after the expiration of this final five (5) year period, except under29 subsection (c).30 (c) An enterprise zone does not expire under this section if the fiscal31 body of the municipality in which the enterprise zone is located:32 (1) has adopted a resolution renewing the enterprise zone under33 subsection (b); and34 (2) adopts a resolution renewing the enterprise zone for an35 additional one (1) year period beginning on the date on which the36 enterprise zone would otherwise expire under the resolution37 adopted under subdivision (1).38 An enterprise zone may be renewed for an additional one (1) year39 period under this subsection regardless of the number of times the40 enterprise zone has been renewed under subsections (d) and (e). A41 municipal fiscal body may adopt a renewal resolution and submit a42 copy of the resolution to the corporation at least thirty (30) days before

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1 the expiration date of the enterprise zone. If an enterprise zone is2 renewed for an additional one (1) year period under this subsection3 after having been renewed under subsection (e), the enterprise zone4 may not be renewed after the expiration of this final one (1) year5 period.6 (d) The two (2) year period immediately before the day on which the7 enterprise zone expires is the phaseout period. During the phaseout8 period, Before July 1, 2018, the board may review the success of the9 enterprise zone based on the following criteria and may, after review

10 by the budget committee, renew the enterprise zone, including all11 provisions of this chapter, for five (5) years:12 (1) Increases in capital investment in the zone.13 (2) Retention of jobs and creation of jobs in the zone.14 (3) Increases in employment opportunities for residents of the15 zone.16 (e) If an enterprise zone is renewed under subsection (d) the two (2)17 year period immediately before the day on which the enterprise zone18 expires is another phaseout period. During the phaseout period, before19 July 1, 2018, the board may review the success of the enterprise zone20 based on the criteria set forth in subsection (d) and, after review by the21 budget committee, may again renew the enterprise zone, including all22 provisions of this chapter, for a final period of five (5) years. The zone23 may not be renewed after the expiration of this final five (5) year24 period.25 (f) An enterprise zone that was not renewed under subsection26 (d) or (e) between January 1, 2017, and June 30, 2018, may be27 renewed for an additional five (5) year period if the fiscal body of28 the municipality in which the enterprise zone is located adopts a29 resolution to renew the enterprise zone for an additional five (5)30 year period. The enterprise zone may not be renewed after the31 expiration of this final five (5) year period.32 SECTION 12. IC 5-28-15-11, AS AMENDED BY P.L.145-2016,33 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE34 JANUARY 1, 2019]: Sec. 11. (a) Notwithstanding any other provision35 of this chapter, one (1) or more units (as defined in IC 36-1-2-23) may36 declare all or any part of a military base or another military installation37 that is inactive, closed, or scheduled for closure as an enterprise zone.38 The declaration shall be made by a resolution of the legislative body of39 the unit that contains the geographic area being declared an enterprise40 zone. The legislative body must include in the resolution that a U.E.A.41 is created or designate another entity to function as the U.E.A. under42 this chapter. The resolution must also be approved by the executive of

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1 the unit.2 (b) If the resolution is approved, the executive shall file the3 resolution and the executive's approval with the corporation. If an4 entity other than a U.E.A. is designated to function as a U.E.A., the5 entity's acceptance must be filed with the corporation along with the6 resolution. The enterprise zone designation is effective on the first day7 of the month following the day the resolution is filed with the8 corporation.9 (c) Establishment of an enterprise zone under this section is not

10 subject to the limit of two (2) new enterprise zones each year under11 section 9(a) of this chapter.12 SECTION 13. IC 5-28-15-12, AS ADDED BY P.L.4-2005,13 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE14 JULY 1, 2018]: Sec. 12. (a) The board may not approve the15 enlargement of an enterprise zone's geographic boundaries unless the16 area to be enlarged meets the criteria of economic distress set forth in17 section 9(c)(1) of this chapter.18 (b) This section expires December 31, 2018.19 SECTION 14. IC 5-28-15-13, AS ADDED BY P.L.4-2005,20 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE21 JANUARY 1, 2019]: Sec. 13. (a) There is established in each applicant22 for designation as an enterprise zone and in each enterprise zone an23 urban enterprise association (U.E.A.). The twelve (12) members of the24 U.E.A. shall be chosen as follows:25 (1) The governor shall appoint the following:26 (A) One (1) state legislator whose district includes all or part27 of the enterprise zone.28 (B) One (1) representative of the corporation, who is not a29 voting member of the U.E.A.30 (2) The executive of the municipality in which the zone is located31 shall appoint the following:32 (A) One (1) representative of the plan commission having33 jurisdiction over the zone, if any exists.34 (B) One (1) representative of the municipality's department35 that performs planning or economic development functions.36 (C) Two (2) representatives of businesses located in the zone,37 one (1) of whom shall be from a manufacturing concern, if any38 exists in the zone.39 (D) One (1) resident of the zone.40 (E) One (1) representative of organized labor from the41 building trades that represent construction workers.42 (3) The legislative body of the municipality in which the zone is

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1 located shall appoint, by majority vote, the following:2 (A) One (1) member of the municipality's legislative body3 whose district includes all or part of the zone.4 (B) One (1) representative of a business located in the zone.5 (C) Two (2) residents of the zone, who must not be members6 of the same political party.7 (b) Members of the U.E.A. serve four (4) year terms. The appointing8 authority shall fill any vacancy for the balance of the vacated term.9 (c) Members may be dismissed only by the appointing authority and

10 only for just cause.11 (d) The members shall elect a chairperson, a vice chairperson, and12 a secretary by majority vote. This election shall be held every two (2)13 years in the same month as the first meeting or whenever a vacancy14 occurs. The U.E.A. shall meet at least once every three (3) months. The15 secretary shall notify members of meetings at least two (2) weeks in16 advance of meetings. The secretary shall provide a list of members to17 each member and shall notify members of any changes in membership.18 (e) If an applicant for designation as an enterprise zone does not19 receive that designation, the U.E.A. in that municipality is dissolved20 when the application is rejected.21 SECTION 15. IC 5-28-15-14, AS ADDED BY P.L.4-2005,22 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE23 JANUARY 1, 2019]: Sec. 14. (a) A U.E.A. shall do the following:24 (1) Coordinate zone development activities.25 (2) Serve as a catalyst for zone development.26 (3) Promote the zone to outside groups and individuals.27 (4) Establish a formal line of communication with residents and28 businesses in the zone.29 (5) Act as a liaison between residents, businesses, the30 municipality, and the board for any development activity that may31 affect the zone or zone residents.32 (b) A U.E.A. may do the following:33 (1) Initiate and coordinate any community development activities34 that aid in the employment of zone residents, improve the35 physical environment, or encourage the turnover or retention of36 capital in the zone. These additional activities include but are not37 limited to recommending to the municipality the manner and38 purpose of expenditure of funds generated under39 IC 36-7-14-39(g) or IC 36-7-15.1-26(g).40 (2) Recommend that the board modify a zone boundary or41 disqualify a zone business from eligibility for one (1) or more42 benefits or incentives available to zone businesses.

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1 (3) (2) Incorporate as a nonprofit corporation. Such a corporation2 may continue after the expiration of the zone in accordance with3 the general principles established by this chapter. A U.E.A. that4 incorporates as a nonprofit corporation under this subdivision5 may purchase or receive real property from a redevelopment6 commission under IC 36-7-14-22.2 or IC 36-7-15.1-15.2.7 (c) The U.E.A. may request, by majority vote, that the legislative8 body of the municipality in which the zone is located modify or waive9 any municipal ordinance or regulation that is in effect in the zone. The

10 legislative body may, by ordinance, waive or modify the operation of11 the ordinance or regulation, if the ordinance or regulation does not12 affect health (including environmental health), safety, civil rights, or13 employment rights.14 (d) The U.E.A. may request, by majority vote, that the board waive15 or modify any state rule that is in effect in the zone. The board shall16 review the request and may approve, modify, or reject the request.17 Approval or modification by the board shall take place after review by18 the appropriate state agency. A modification may include but is not19 limited to establishing different compliance or reporting requirements,20 timetables, or exemptions in the zone for a business or an individual,21 to the extent that the modification does not adversely affect health22 (including environment health), safety, employment rights, or civil23 rights. An approval or a modification of a state rule by the board takes24 effect upon the approval of the governor. In no case are the provisions25 of IC 22-2-2 and IC 22-7-1-2 mitigated by this chapter.26 SECTION 16. IC 5-28-15-15, AS ADDED BY P.L.4-2005,27 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE28 JULY 1, 2018]: Sec. 15. (a) Any business that substantially reduces or29 ceases an operation located in Indiana and outside an enterprise zone30 (referred to as a nonzone operation) in order to relocate in an Indiana31 enterprise zone is disqualified from benefits or incentives available to32 zone businesses. Determinations under this section shall be made by a33 hearing panel composed of the chairperson of the board or the34 chairperson's designee, the commissioner of the department of state35 revenue or the commissioner's designee, and the commissioner of the36 department of local government finance or the commissioner's37 designee. The panel, after an evidentiary hearing held subsequent to the38 relocation of the business, shall submit a recommended order to the39 board for its adoption. The recommended order shall be based on the40 following criteria and subsection (b):41 (1) A site specific economic activity, including sales, leasing,42 service, manufacturing, production, storage of inventory, or any

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1 activity involving permanent full-time or part-time employees2 shall be considered a business operation.3 (2) With respect to a nonzone operation, any of the following that4 occurs during the twelve (12) months before the completion of the5 physical relocation of all or part of the activity described in6 subdivision (1) from the nonzone operation to the enterprise zone7 as compared with the twelve (12) months before that twelve (12)8 months shall be considered a substantial reduction:9 (A) A reduction in the average number of full-time or

10 part-time employees of the lesser of:11 (i) one hundred (100) employees; or12 (ii) twenty-five percent (25%) of all employees.13 (B) A twenty-five percent (25%) reduction in the average14 number of goods manufactured or produced.15 (C) A twenty-five percent (25%) reduction in the average16 value of services provided.17 (D) A ten percent (10%) reduction in the average value of18 stored inventory.19 (E) A twenty-five percent (25%) reduction in the average20 amount of gross income.21 (b) Notwithstanding subsection (a), a business that would otherwise22 be disqualified under subsection (a) is eligible for benefits and23 incentives available to zone businesses if each of the following24 conditions is met:25 (1) The business relocates its nonzone operation for any of the26 following reasons:27 (A) The lease on property necessary for the nonzone operation28 has been involuntarily lost through no fault of the business.29 (B) The space available at the location of the nonzone30 operation cannot accommodate planned expansion needed by31 the business.32 (C) The building for the nonzone operation has been certified33 as uninhabitable by a state or local building authority.34 (D) The building for the nonzone operation has been totally35 destroyed through no fault of the business.36 (E) The renovation and construction costs at the location of the37 nonzone operation are more than one and one-half (1 1/2)38 times the costs of purchase, renovation, and construction of a39 facility in the zone, as certified by three (3) independent40 estimates.41 A business is eligible for benefits and incentives under clause (C)42 or (D) only if renovation and construction costs at the location of

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1 the nonzone operation are more than one and one-half (1 1/2)2 times the cost of purchase, renovation, and construction of a3 facility in the zone. These costs must be certified by three (3)4 independent estimates.5 (2) The business has not terminated or reduced the pension or6 health insurance obligations payable to employees or former7 employees of the nonzone operation without the consent of the8 employees.9 (c) The hearing panel shall cause to be delivered to the business and

10 to any person who testified before the panel in favor of disqualification11 of the business a copy of the panel's recommended order. The business12 and these persons shall be considered parties for purposes of this13 section.14 (d) A party who wishes to oppose the board's adoption of the15 recommended order of the hearing panel shall, not later than ten (10)16 days after the party's receipt of the recommended order, file written17 objections with the board. If the objections are filed, the board shall set18 the objections for oral argument and give notice to the parties. A party19 at its own expense may cause to be filed with the board a transcript of20 the oral testimony or any other part of the record of the proceedings.21 The oral argument shall be on the record filed with the board. The22 board may hear additional evidence or remand the action to the hearing23 panel with instructions appropriate to the expeditious and proper24 disposition of the action. The board may adopt the recommendations25 of the hearing panel, may amend or modify the recommendations, or26 may make an order or determination as is proper on the record.27 (e) If no objections are filed, the board may adopt the recommended28 order without oral argument. If the board does not adopt the proposed29 findings of fact and recommended order, the parties shall be notified30 and the action shall be set for oral argument as provided in subsection31 (d).32 (f) The final determination made by the board shall be made by a33 majority of the quorum needed for board meetings.34 (g) This section expires December 31, 2018.35 SECTION 17. IC 5-28-29-9, AS ADDED BY P.L.162-2007,36 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE37 JULY 1, 2018]: Sec. 9. As used in this chapter, "lender" means:38 (1) a financial institution (as defined in IC 5-13-4-10); or39 (2) alternatively, during the period beginning after June 30,40 2018, and ending before July 1, 2021:41 (A) a credit corporation (as defined in IC 23-6-4-1);42 (B) an entity that:

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1 (i) extends more than seventy-five percent (75%) of all2 eligible loans made in the previous twelve (12) month3 period to minority owned businesses (as defined in4 IC 5-28-20-4); and5 (ii) is approved by the corporation as a lender in6 accordance with the policy guidelines adopted by the7 board of the corporation; or8 (C) a qualified "eligible intermediary" participating in the9 federal Small Business Administration Microloan Program

10 pursuant to 15 U.S.C. 636(m), as amended from time to11 time, and who is approved by the corporation as a lender12 in accordance with the policy guidelines adopted by the13 board of the corporation;14 that has entered into an agreement with the corporation to participate15 in the program.16 SECTION 18. IC 5-28-29-17, AS ADDED BY P.L.162-2007,17 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE18 JULY 1, 2018]: Sec. 17. (a) The following types of loans are eligible19 loans under the program:20 (1) Loans for industrial or commercial purposes.21 (2) Loans to refinance loans made for the purposes in subdivision22 (1).23 (3) Loans for line of credit agreements established between the24 lender and borrower that are used for the purposes in subdivision25 (1).26 (b) Eligible loans must meet the following criteria:27 (1) The lender has not made the loan to enroll in the program28 prior debt that is not covered under the program and that is or was29 owed by the borrower to the lender.30 (2) The proceeds of the loan will not be used for that part of a31 project or development devoted to housing.32 (3) The proceeds of the loan will not be used to finance passive33 real estate ownership.34 (4) The proceeds of the loan will be used to finance a project or35 enterprise that is located in Indiana and that will foster economic36 development in Indiana.37 (c) An eligible loan may provide for an interest rate, fees, and other38 terms and conditions agreed to by the lender and borrower. If the loan39 amount to be borrowed is determined by a commitment agreement that40 establishes a line of credit, the amount of the loan is the maximum41 amount available to the borrower under the agreement.42 (d) Notwithstanding any other provision of this chapter, a loan:

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1 (1) originated by an entity:2 (A) that is a qualified "eligible intermediary" participating3 in the federal Small Business Administration Microloan4 Program pursuant to 15 U.S.C. 636(m), as amended from5 time to time; and6 (B) who is approved as a lender in accordance with the7 policy guidelines adopted by the board of the corporation;8 and9 (2) with a principal loan amount that exceeds fifty thousand

10 dollars ($50,000);11 is not an eligible loan under the program.12 SECTION 19. IC 5-28-29-25, AS ADDED BY P.L.162-2007,13 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE14 JULY 1, 2018]: Sec. 25. The lender shall determine the premium15 charges payable to the reserve fund by the lender and the borrower in16 connection with a loan filed for enrollment. The premium paid by the17 borrower may not be less than one and one-half percent (1.5%) (1%)18 or greater than three and one-half percent (3.5%) of the amount of the19 loan. The premium paid by the lender must be equal to the amount of20 the premium paid by the borrower. The lender may recover the cost of21 the lender's premium payment from the borrower in any manner on22 which the lender and borrower agree. When enrolling a loan, the23 corporation must transfer into the reserve fund from the account24 premium amounts determined as follows:25 (1) If the amount of a loan, plus the amount of loans previously26 enrolled by the lender, is less than two million dollars27 ($2,000,000), the premium amount transferred must be equal to28 one hundred fifty percent (150%) of the combined premiums paid29 into the reserve fund by the borrower and the lender for each30 enrolled loan.31 (2) If, before the enrollment of the loan, the amount of loans32 previously enrolled by the lender is equal to or greater than two33 million dollars ($2,000,000), the premium amount transferred34 must be equal to the combined premiums paid into the reserve35 fund by the borrower and the lender for each enrolled loan.36 (3) If the total amount of all loans previously enrolled by the37 lender is less than two million dollars ($2,000,000), but the38 enrollment of a loan will cause the total amount of all enrolled39 loans made by the lender to exceed two million dollars40 ($2,000,000), the corporation shall transfer into the reserve fund41 an amount equal to a percentage of the combined premiums paid42 into the reserve fund by the lender and the borrower. The

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1 percentage is determined as follows:2 STEP ONE: Multiply by one hundred fifty (150) that part of3 the loan that when added to the total amount of all loans4 previously enrolled by the lender totals two million dollars5 ($2,000,000).6 STEP TWO: Multiply the remaining balance of the loan by7 one hundred (100).8 STEP THREE: Add the STEP ONE product to the STEP TWO9 product.

10 STEP FOUR: Divide the STEP THREE sum by the total11 amount of the loan.12 The corporation may transfer two (2) times the amount determined13 under this section to the reserve fund if the borrower is a disadvantaged14 business enterprise (as defined in IC 5-16-6.5-1). small disadvantaged15 business under 13 CFR 124.1002. The corporation may transfer three16 (3) times the amount determined under this section to the reserve fund17 if the borrower is a high growth company with high skilled jobs (as18 defined in IC 5-28-30-4). The corporation may transfer to the reserve19 fund three (3) times the amount determined under this section if the20 borrower is a child care facility. Unless money is paid out of the21 reserve fund according to the specific terms of this chapter, all money22 paid into the reserve account by the lender must remain in that account.23 SECTION 20. IC 6-3.1-7-2, AS AMENDED BY P.L.4-2005,24 SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE25 JANUARY 1, 2019]: Sec. 2. (a) A taxpayer is entitled to a credit26 against the taxpayer's state tax liability for a taxable year if the27 taxpayer:28 (1) receives interest on a qualified loan in that taxable year;29 (2) pays the registration fee charged to zone businesses under30 IC 5-28-15-5;31 (3) (2) provides the assistance to urban enterprise associations32 required from zone businesses under IC 5-28-15-5(b);33 IC 5-28-15-5.7(b); and34 (4) (3) complies with any requirements adopted by the board of35 the Indiana economic development corporation under IC 5-28-1536 for taxpayers claiming the credit under this chapter.37 However, if a taxpayer is located outside of an enterprise zone,38 subdivision (4) (3) does not require the taxpayer to reinvest its39 incentives under this section within the enterprise zone, except as40 provided in subdivisions subdivision (2). and (3).41 (b) The amount of the credit to which a taxpayer is entitled under42 this section is five percent (5%) multiplied by the amount of interest

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1 received by the taxpayer during the taxable year from qualified loans.2 (c) If a pass through entity is entitled to a credit under subsection (a)3 but does not have state tax liability against which the tax credit may be4 applied, an individual who is a shareholder, partner, beneficiary, or5 member of the pass through entity is entitled to a tax credit equal to:6 (1) the tax credit determined for the pass through entity for the7 taxable year; multiplied by8 (2) the percentage of the pass through entity's distributive income9 to which the shareholder, partner, beneficiary, or member is

10 entitled.11 The credit provided under this subsection is in addition to a tax credit12 to which a shareholder, partner, beneficiary, or member of a pass13 through entity is entitled. However, a pass through entity and an14 individual who is a shareholder, partner, beneficiary, or member of a15 pass through entity may not claim more than one (1) credit for the16 qualified expenditure.17 SECTION 21. IC 6-8.1-9-14 IS REPEALED [EFFECTIVE JULY18 1, 2018]. Sec. 14. (a) Except as provided in subsection (n), the19 department shall establish, administer, and make available a20 centralized debt collection program for use by state agencies to collect21 delinquent accounts, charges, fees, loans, taxes, or other indebtedness22 owed to or being collected by state agencies. The department's23 collection facilities shall be available for use by other state agencies24 only when resources are available to the department.25 (b) The commissioner shall prescribe the appropriate form and26 manner in which collection information is to be submitted to the27 department.28 (c) The debt must be delinquent and not subject to litigation, claim,29 appeal, or review under the appropriate remedies of a state agency.30 (d) The department has the authority to collect for the state or31 claimant agency (as defined in IC 6-8.1-9.5-1) delinquent accounts,32 charges, fees, loans, taxes, or other indebtedness due:33 (1) the state;34 (2) a claimant agency that has a formal agreement with the35 department for central debt collection; or36 (3) a claimant agency described in IC 6-8.1-9.5-1(1)(B) that has37 an interlocal agreement with a clearinghouse that:38 (A) is established under IC 6-8.1-9.5-3.5; and39 (B) has a formal agreement with the department for central40 debt collection.41 (e) The formal agreement must provide that the information42 provided to the department be sufficient to establish the obligation in

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1 court and to render the agreement as a legal judgment on behalf of the2 state. After transferring a file for collection to the department for3 collection, the claimant agency shall terminate all collection procedures4 and be available to provide assistance to the department. Upon receipt5 of a file for collection, the department shall comply with all applicable6 state and federal laws governing collection of the debt.7 (f) The department may use a claimant agency's statutory authority8 to collect the claimant agency's delinquent accounts, charges, fees,9 loans, taxes, or other indebtedness owed to the claimant agency.

10 (g) The department's right to credit against taxes due may not be11 impaired by any right granted the department or other state agency12 under this section.13 (h) The department of state revenue may charge a debtor a fee not14 to exceed fifteen percent (15%) of any funds the department collects15 for a claimant agency. Notwithstanding any law concerning delinquent16 accounts, charges, fees, loans, taxes, or other indebtedness, the fifteen17 percent (15%) fee shall be added to the amount due to the state or18 claimant agency when the collection is made.19 (i) Fees collected under subsection (h) shall be retained by the20 department after the debt is collected for the claimant agency and are21 appropriated to the department for use by the department in22 administering this section.23 (j) The department shall transfer any funds collected from a debtor24 to the claimant agency within thirty (30) days after the end of the25 month in which the funds were collected.26 (k) When a claimant agency requests collection by the department,27 the claimant agency shall provide the department with:28 (1) the full name;29 (2) the Social Security number or federal identification number,30 or both;31 (3) the last known mailing address; and32 (4) additional information that the department may request;33 concerning the debtor.34 (l) The department shall establish a minimum amount that the35 department will attempt to collect for the claimant agency.36 (m) The commissioner shall report, not later than March 1 for the37 previous calendar year, to the governor, the budget director, and the38 legislative council concerning the implementation of the centralized39 debt collection program, the number of debts, the dollar amounts of40 debts collected, and an estimate of the future costs and benefits that41 may be associated with the collection program. A report to the42 legislative council under this subsection must be in an electronic

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1 format under IC 5-14-6.2 (n) The department may not assess a fee to a state agency or a3 custodial parent for seeking a set off to a state or federal income tax4 refund for past due child support.5 SECTION 22. IC 6-8.1-9.5-12, AS AMENDED BY THE6 TECHNICAL CORRECTIONS BILL OF THE 2018 GENERAL7 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE8 JULY 1, 2018]: Sec. 12. Priority in multiple claims to refunds allowed9 to be set off under this chapter shall be in the following order:

10 (1) Department of state revenue.11 (2) Child support bureau.12 (3) Department of workforce development.13 (4) Family and social services administration for claims14 concerning the Temporary Assistance for Needy Families15 (TANF) program. (TANF).16 (5) Family and social services administration for claims17 concerning the federal Supplemental Nutrition Assistance18 Program (SNAP).19 (6) Family and social services administration for claims20 concerning the Child Care and Development Fund (CCDF).21 (7) Approved postsecondary educational institutions (as defined22 in IC 21-7-13-6).23 (8) Office of judicial administration for claims concerning the24 judicial technology and automation project fund.25 (9) A claimant agency described in section 1(1)(A) of this26 chapter:27 (A) that is not listed in subdivisions (1) through (8); and28 (B) that enters into a formal agreement with the department29 under IC 6-8.1-9-14(d) after December 31, 2017.30 The priority of multiple claims of claimant agencies in this31 subsection subdivision must be in the order in time that a32 claimant agency entered into a formal agreement with the33 department.34 (10) United States Internal Revenue Service.35 (11) A claimant agency described in section 1(1)(A) of this36 chapter that is not identified in the order priority under37 subdivisions (1) through (9). The priority of multiple claims of38 claimant agencies in this subsection subdivision must be in the39 order in time that a claimant agency has filed a written notice with40 the department of its intention to effect collection through a set41 off under this chapter.42 (12) A claimant agency described in section 1(1)(B) of this

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1 chapter. The priority of multiple claims of claimant agencies in2 this subsection subdivision must be in the order in time that the3 clearinghouse representing the claimant agency files an4 application on behalf of the claimant agency to effect collection5 through a set off under this chapter.6 SECTION 23. IC 35-52-5-10, AS ADDED BY P.L.169-2014,7 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE8 JANUARY 1, 2019]: Sec. 10. IC 5-28-15-7 IC 5-28-15-7.5 defines a9 crime concerning enterprise zones.

10 SECTION 24. IC 36-7-14-22.2, AS AMENDED BY P.L.4-2005,11 SECTION 134, IS AMENDED TO READ AS FOLLOWS12 [EFFECTIVE JANUARY 1, 2019]: Sec. 22.2. (a) The commission may13 sell or grant, at no cost, title to real property to an urban enterprise14 association for the purpose of developing the real property if the15 following requirements are met:16 (1) The urban enterprise association has incorporated as a17 nonprofit corporation under IC 5-28-15-14(b)(3).18 IC 5-28-15-14(b)(2).19 (2) The parcel of property to be sold or granted is located entirely20 within the enterprise zone for which the urban enterprise21 association was created under IC 5-28-15-13.22 (3) The urban enterprise association agrees to cause development23 on the parcel of property within a specified period that may not24 exceed five (5) years from the date of the sale or grant.25 (4) The urban enterprise association agrees to rehabilitate or26 otherwise develop the property in a manner that is similar to and27 consistent with the use of the other properties in the enterprise28 zone.29 (b) The commission may sell or grant, at no cost, title to real30 property to a community development corporation (as defined in31 IC 4-4-28-2) for the purpose of providing low or moderate income32 housing or other development that will benefit or serve low or33 moderate income families if the following requirements are met:34 (1) The community development corporation has as a major35 corporate purpose and function the provision of housing for low36 and moderate income families within the geographic area in37 which the parcel of real property is located.38 (2) The community development corporation agrees to cause39 development that will serve or benefit low or moderate income40 families on the parcel of real property within a specified period,41 which may not exceed five (5) years from the date of the sale or42 grant.

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1 (3) The community development corporation agrees that the2 community development corporation and each applicant,3 recipient, contractor, or subcontractor undertaking work in4 connection with the real property will:5 (A) use lower income project area residents as trainees and as6 employees; and7 (B) contract for work with business concerns located in the8 project area or owned in substantial part by persons residing9 in the project area;

10 to the greatest extent feasible, as determined under the standards11 specified in 24 CFR 135.12 (4) The community development corporation agrees to13 rehabilitate or otherwise develop the property in a manner that is14 similar to and consistent with the use of the other properties in the15 area served by the community development corporation.16 (c) To carry out the purposes of this section, the commission may17 secure from the county under IC 6-1.1-25-9(e) parcels of property18 acquired by the county under IC 6-1.1-24 and IC 6-1.1-25.19 (d) Before offering any parcel of property for sale or grant, the fair20 market value of the parcel of property must be determined by an21 appraiser, who may be an employee of the department. However, if the22 commission has obtained the parcel in the manner described in23 subsection (c), an appraisal is not required. An appraisal under this24 subsection is solely for the information of the commission and is not25 available for public inspection.26 (e) The commission must decide at a public meeting whether the27 commission will sell or grant the parcel of real property. In making this28 decision, the commission shall give substantial weight to the extent to29 which and the terms under which the urban enterprise association or30 community development corporation will cause development on the31 property.32 (f) Before conducting a meeting under subsection (g), the33 commission shall publish a notice in accordance with IC 5-3-134 indicating that at a designated time the commission will consider35 selling or granting the parcel of real property under this section. The36 notice must state the general location of the property, including the37 street address, if any, or a common description of the property other38 than the legal description.39 (g) If the county agrees to transfer a parcel of real property to the40 commission to be sold or granted under this section, the commission41 may conduct a meeting to sell or grant the parcel to an urban enterprise42 zone or to a community development corporation even though the

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1 parcel has not yet been transferred to the commission. After the2 hearing, the commission may adopt a resolution directing the3 department to take appropriate steps necessary to acquire the parcel4 from the county and to transfer the parcel to the urban enterprise5 association or to the community development corporation.6 (h) A conveyance of property under this section shall be made in7 accordance with section 22(i) of this chapter.8 (i) An urban enterprise association that purchases or receives real9 property under this section shall report the terms of the conveyance to

10 the board of the Indiana economic development corporation not later11 than thirty (30) days after the date the conveyance of the property is12 made.13 SECTION 25. IC 36-7-15.1-15.2, AS AMENDED BY P.L.4-2005,14 SECTION 137, IS AMENDED TO READ AS FOLLOWS15 [EFFECTIVE JANUARY 1, 2019]: Sec. 15.2. (a) The commission may16 sell or grant, at no cost, title to real property to an urban enterprise17 association for the purpose of developing the real property if the18 following requirements are met:19 (1) The urban enterprise association has incorporated as a20 nonprofit corporation under IC 5-28-15-14(b)(3).21 IC 5-28-15-14(b)(2).22 (2) The parcel of property to be sold or granted is located entirely23 within the enterprise zone for which the urban enterprise24 association was created under IC 5-28-15-13.25 (3) The urban enterprise association agrees to cause development26 on the parcel of property within a specified period that may not27 exceed five (5) years from the date of the sale or grant.28 (4) The urban enterprise association agrees to rehabilitate or29 otherwise develop the property in a manner that is similar to and30 consistent with the use of the other properties in the enterprise31 zone.32 (b) To carry out the purposes of this section, the commission may33 secure from the county under IC 6-1.1-25-9(e) parcels of property34 acquired by the county under IC 6-1.1-24 and IC 6-1.1-25.35 (c) Before offering any parcel of property for sale or grant, the fair36 market value of the parcel of property must be determined by an37 appraiser, who may be an employee of the department. However, if the38 commission has obtained the parcel in the manner described in39 subsection (b), an appraisal is not required. An appraisal under this40 subsection is solely for the information of the commission and is not41 available for public inspection.42 (d) The commission must decide at a public meeting whether the

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1 commission will sell or grant the parcel of real property. In making this2 decision, the commission shall give substantial weight to the extent to3 which and the terms under which the urban enterprise association will4 cause development on the property.5 (e) Before conducting a meeting under subsection (d), the6 commission shall publish a notice in accordance with IC 5-3-17 indicating that at a designated time the commission will consider8 selling or granting the parcel of real property under this section. The9 notice must state the general location of the property, including the

10 street address, if any, or a common description of the property other11 than the legal description.12 (f) If the county agrees to transfer a parcel of real property to the13 commission to be sold or granted under this section, the commission14 may conduct a meeting to sell or grant the parcel to an urban enterprise15 zone even though the parcel has not yet been transferred to the16 commission. After the hearing, the commission may adopt a resolution17 directing the department to take appropriate steps necessary to acquire18 the parcel from the county and to transfer the parcel to the urban19 enterprise association.20 (g) A conveyance of property to an urban enterprise association21 under this section shall be made in accordance with section 15(i) of this22 chapter.23 (h) An urban enterprise association that purchases or receives real24 property under this section shall report the terms of the conveyance to25 the board of the Indiana economic development corporation not later26 than thirty (30) days after the date the conveyance of the property is27 made.

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COMMITTEE REPORT

Mr. Speaker: Your Committee on Commerce, Small Business andEconomic Development, to which was referred House Bill 1288, hashad the same under consideration and begs leave to report the sameback to the House with the recommendation that said bill be amendedas follows:

Page 4, line 40, after "businesses." insert "If all of a zone business'sincentives exceed one thousand dollars ($1,000) in a year, thelegislative body of the municipality may, at the request of the zoneU.E.A., impose an additional fee on a zone business to be paid tothe zone U.E.A. in an amount equal to one percent (1%) of all itsincentives to be used exclusively for the zone U.E.A.'sadministrative expenses.".

Page 7, between lines 14 and 15, begin a new paragraph and insert:"SECTION 8. IC 5-28-15-7.3 IS ADDED TO THE INDIANA

CODE AS A NEW SECTION TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2018]: Sec. 7.3. (a) A zone business thatclaims any of the incentives available to zone businesses shall,before June 1 of each year:

(1) submit to the zone U.E.A., on a form prescribed by thezone U.E.A., a verified summary concerning the amount of taxcredits and exemptions claimed by the zone business in thepreceding year; and(2) pay the amount specified in section 5.7(b) of this chapterto the zone U.E.A.

(b) A zone U.E.A. may as provided in this subsection grant one(1) extension of the time allowed to comply with subsection (a). Toqualify for an extension, a zone business must apply to the zoneU.E.A. before June 1. The application must be in the form specifiedby the zone U.E.A. The extension granted by the zone U.E.A. maynot exceed forty-five (45) days.

(c) If a zone business fails to comply with the requirements ofsubsection (a) before June 1 (or before July 16 if an extension isgranted under subsection (b)), the zone U.E.A. may:

(1) deny all the tax credit and exemption incentives availableto the zone business because the business was a zone businessfor that year; and(2) disqualify the zone business from further participation inthe enterprise zone program under this chapter until the zonebusiness:

(A) petitions the zone U.E.A. for readmission to theenterprise zone program under this chapter; and

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(B) pays the amount required under section 5.7(b) of thischapter.".

Page 10, line 32, delete "Beginning after June 30, 2018, an" andinsert "An".

Page 10, line 33, after "(e)" insert "between January 1, 2017, andJune 30, 2018,". Page 14, line 28, delete "Before July 1, 2018, and notwithstanding"and insert "Notwithstanding".

Renumber all SECTIONS consecutively.

and when so amended that said bill do pass.

(Reference is to HB 1288 as introduced.)

MORRIS

Committee Vote: yeas 11, nays 0.

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HOUSE MOTION

Mr. Speaker: I move that House Bill 1288 be amended to read asfollows:

Page 16, delete lines 40 through 42, begin a new line block indentedand insert:

"(2) alternatively, during the period beginning after June 30,2018, and ending before July 1, 2021:

(A) a credit corporation (as defined in IC 23-6-4-1); or(B) an entity that:

(i) extends more than seventy-five percent (75%) of alleligible loans made in the previous twelve (12) monthperiod to minority owned businesses (as defined inIC 5-28-20-4); and(ii) is approved by the corporation as a lender inaccordance with the policy guidelines adopted by theboard of the corporation; or

(C) a qualified "eligible intermediary" participating in thefederal Small Business Administration Microloan Programpursuant to 15 U.S.C. 636(m), as amended from time totime, and who is approved by the corporation as a lenderin accordance with the policy guidelines adopted by theboard of the corporation;".

Page 17, between lines 2 and 3, begin a new paragraph and insert:

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"SECTION 18. IC 5-28-29-17, AS ADDED BY P.L.162-2007,SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2018]: Sec. 17. (a) The following types of loans are eligibleloans under the program:

(1) Loans for industrial or commercial purposes.(2) Loans to refinance loans made for the purposes in subdivision(1).(3) Loans for line of credit agreements established between thelender and borrower that are used for the purposes in subdivision(1).

(b) Eligible loans must meet the following criteria:(1) The lender has not made the loan to enroll in the programprior debt that is not covered under the program and that is or wasowed by the borrower to the lender.(2) The proceeds of the loan will not be used for that part of aproject or development devoted to housing.(3) The proceeds of the loan will not be used to finance passivereal estate ownership.(4) The proceeds of the loan will be used to finance a project orenterprise that is located in Indiana and that will foster economicdevelopment in Indiana.

(c) An eligible loan may provide for an interest rate, fees, and otherterms and conditions agreed to by the lender and borrower. If the loanamount to be borrowed is determined by a commitment agreement thatestablishes a line of credit, the amount of the loan is the maximumamount available to the borrower under the agreement.

(d) Notwithstanding any other provision of this chapter, a loan:(1) originated by an entity:

(A) that is a qualified "eligible intermediary" participatingin the federal Small Business Administration MicroloanProgram pursuant to 15 U.S.C. 636(m), as amended fromtime to time; and(B) who is approved as a lender in accordance with thepolicy guidelines adopted by the board of the corporation;and

(2) with a principal loan amount that exceeds fifty-thousanddollars ($50,000);

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is not an eligible loan under the program.".Renumber all SECTIONS consecutively.

(Reference is to HB 1288 as printed January 26, 2018.)

TORR

_____

COMMITTEE REPORT

Madam President: The Senate Committee on Tax and Fiscal Policy,to which was referred House Bill No. 1288, has had the same underconsideration and begs leave to report the same back to the Senate withthe recommendation that said bill be AMENDED as follows:

Page 2, line 23, after "corporation" insert ".".Page 2, delete line 24.Page 2, line 29, delete "IC 6-8.1-9-14" and insert "IC 6-8.1-9.5".Page 2, line 35, delete "IC 6-8.1-9-14, notwithstanding".Page 2, line 36, delete "centralized" and insert "refund set off

program under IC 6-8.1-9.5.".Page 2, delete line 37.Page 16, line 42, delete "or".Page 18, line 10, delete "fifty-thousand" and insert "fifty thousand".Page 20, between lines 17 and 18, begin a new paragraph and insert:"SECTION 21. IC 6-8.1-9-14 IS REPEALED [EFFECTIVE JULY

1, 2018]. Sec. 14. (a) Except as provided in subsection (n), thedepartment shall establish, administer, and make available acentralized debt collection program for use by state agencies to collectdelinquent accounts, charges, fees, loans, taxes, or other indebtednessowed to or being collected by state agencies. The department'scollection facilities shall be available for use by other state agenciesonly when resources are available to the department.

(b) The commissioner shall prescribe the appropriate form andmanner in which collection information is to be submitted to thedepartment.

(c) The debt must be delinquent and not subject to litigation, claim,appeal, or review under the appropriate remedies of a state agency.

(d) The department has the authority to collect for the state orclaimant agency (as defined in IC 6-8.1-9.5-1) delinquent accounts,charges, fees, loans, taxes, or other indebtedness due:

(1) the state;

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(2) a claimant agency that has a formal agreement with thedepartment for central debt collection; or(3) a claimant agency described in IC 6-8.1-9.5-1(1)(B) that hasan interlocal agreement with a clearinghouse that:

(A) is established under IC 6-8.1-9.5-3.5; and(B) has a formal agreement with the department for centraldebt collection.

(e) The formal agreement must provide that the informationprovided to the department be sufficient to establish the obligation incourt and to render the agreement as a legal judgment on behalf of thestate. After transferring a file for collection to the department forcollection, the claimant agency shall terminate all collection proceduresand be available to provide assistance to the department. Upon receiptof a file for collection, the department shall comply with all applicablestate and federal laws governing collection of the debt.

(f) The department may use a claimant agency's statutory authorityto collect the claimant agency's delinquent accounts, charges, fees,loans, taxes, or other indebtedness owed to the claimant agency.

(g) The department's right to credit against taxes due may not beimpaired by any right granted the department or other state agencyunder this section.

(h) The department of state revenue may charge a debtor a fee notto exceed fifteen percent (15%) of any funds the department collectsfor a claimant agency. Notwithstanding any law concerning delinquentaccounts, charges, fees, loans, taxes, or other indebtedness, the fifteenpercent (15%) fee shall be added to the amount due to the state orclaimant agency when the collection is made.

(i) Fees collected under subsection (h) shall be retained by thedepartment after the debt is collected for the claimant agency and areappropriated to the department for use by the department inadministering this section.

(j) The department shall transfer any funds collected from a debtorto the claimant agency within thirty (30) days after the end of themonth in which the funds were collected.

(k) When a claimant agency requests collection by the department,the claimant agency shall provide the department with:

(1) the full name;(2) the Social Security number or federal identification number,or both;(3) the last known mailing address; and(4) additional information that the department may request;

concerning the debtor.

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(l) The department shall establish a minimum amount that thedepartment will attempt to collect for the claimant agency.

(m) The commissioner shall report, not later than March 1 for theprevious calendar year, to the governor, the budget director, and thelegislative council concerning the implementation of the centralizeddebt collection program, the number of debts, the dollar amounts ofdebts collected, and an estimate of the future costs and benefits thatmay be associated with the collection program. A report to thelegislative council under this subsection must be in an electronicformat under IC 5-14-6.

(n) The department may not assess a fee to a state agency or acustodial parent for seeking a set off to a state or federal income taxrefund for past due child support.

SECTION 22. IC 6-8.1-9.5-12, AS AMENDED BY THETECHNICAL CORRECTIONS BILL OF THE 2018 GENERALASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2018]: Sec. 12. Priority in multiple claims to refunds allowedto be set off under this chapter shall be in the following order:

(1) Department of state revenue.(2) Child support bureau.(3) Department of workforce development.(4) Family and social services administration for claimsconcerning the Temporary Assistance for Needy Families(TANF) program. (TANF).(5) Family and social services administration for claimsconcerning the federal Supplemental Nutrition AssistanceProgram (SNAP).(6) Family and social services administration for claimsconcerning the Child Care and Development Fund (CCDF).(7) Approved postsecondary educational institutions (as definedin IC 21-7-13-6).(8) Office of judicial administration for claims concerning thejudicial technology and automation project fund.(9) A claimant agency described in section 1(1)(A) of thischapter:

(A) that is not listed in subdivisions (1) through (8); and(B) that enters into a formal agreement with the departmentunder IC 6-8.1-9-14(d) after December 31, 2017.

The priority of multiple claims of claimant agencies in thissubsection subdivision must be in the order in time that aclaimant agency entered into a formal agreement with thedepartment.

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(10) United States Internal Revenue Service.(11) A claimant agency described in section 1(1)(A) of thischapter that is not identified in the order priority undersubdivisions (1) through (9). The priority of multiple claims ofclaimant agencies in this subsection subdivision must be in theorder in time that a claimant agency has filed a written notice withthe department of its intention to effect collection through a setoff under this chapter.(12) A claimant agency described in section 1(1)(B) of thischapter. The priority of multiple claims of claimant agencies inthis subsection subdivision must be in the order in time that theclearinghouse representing the claimant agency files anapplication on behalf of the claimant agency to effect collectionthrough a set off under this chapter.".

Renumber all SECTIONS consecutively.

and when so amended that said bill do pass.

(Reference is to HB 1288 as reprinted February 1, 2018.)

HOLDMAN, Chairperson

Committee Vote: Yeas 10, Nays 0.

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