2016 Indiana Legislative Update

indiana legislative update

2018 Edition  |  Table of Contents
 

Economic Development and Tax Credits
By Tim C. Cook, JD, Katie Culp, Garth Brazleton

Affected Code Section: Ind. Code Chapter 2-5-42.4 (addition)
Effective Date: Upon Passage
Enacted By: House Bill 1002 § 1
Explanation: Requires a systematic and comprehensive workforce related program review by the legislative services agency performed according to a schedule developed by the legislative services agency. Defines “workforce related program” as having the meaning set forth in Ind. Code § 22-4.1-1-7. Provides that the review, analysis, and evaluation must include information about each workforce related program that is necessary to determine if the goals of the workforce related program are being achieved. Outlines potential areas of review, analysis, and evaluation for each workforce related program. Provides that the legislative services agency shall, before October 1 of each year, submit a report to the legislative council and to the interim study committee on fiscal policy containing the results of the legislative services agency’s review, analysis, and evaluation. Specifies that the report must include at least the following for each workforce related program reviewed: (1) An explanation of the workforce related program. (2) The history of the workforce related program. (3) An estimate for each state fiscal year of the next biennial budget of the cost of the workforce related program. (4) A detailed description of the review, analysis, and evaluation for the workforce related program. (5) Information to be used by the general assembly to determine whether the workforce related program should be continued, modified, or terminated, the basis for the recommendation, and the expected impact of the recommendation. (6) Information to be used by the general assembly to better align the workforce related program with the original intent of the legislation that enacted the workforce related program. Provides that the report must not disclose any proprietary or otherwise confidential information. Provides that the interim study committee on fiscal policy shall hold at least one (1) public hearing after September 30 and before November 1 of each year in which it receives information concerning workforce related programs and shall submit to the legislative council any recommendations that are related to the legislative services agency’s review, analysis, and evaluation of workforce related programs. Provides that the general assembly shall use the legislative services agency’s report and the interim study committee on fiscal policy’s recommendations to determine whether a particular workforce related program: (1) is successful; (2) is provided at a cost that can be accommodated by the state's biennial budget; and (3) should be continued, amended, or repealed. Provides that the legislative services agency shall establish and maintain a system for making available to the public information about the amount and effectiveness of workforce related programs. Provides that the legislative services agency shall develop and publish on the general assembly’s Internet web site a multiyear schedule that lists all workforce related programs and indicates the year when the report will be published for each workforce related program reviewed. Provides that the legislative services agency may revise the schedule as long as the legislative services agency provides for a systematic review, analysis, and evaluation of all workforce related programs and that each workforce related program is reviewed at least once every five (5) years.
Application Note: Requires the legislative services agency to study, analyze and report on the Indiana economic development corporation’s (IEDC) Skills Enhancement Fund (SEF) program, and other “workforce related programs” on a regular basis, and in a manner consistent with how it already studies various tax credit incentive programs.

Affected Code Section: Ind. Code Chapter 4-3-27 (addition)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 § 1
Explanation: Establishes the governor’s workforce cabinet (cabinet). Specifies that the phrase “applicable federal program” refers to the federal human resource programs for which the cabinet has authority to make recommendations. Provides that the cabinet is established to do the following: (1) Review the services and use of funds and resources under applicable state and federal programs and advise the governor on methods of coordinating the services and use of funds and resources consistent with the laws and regulations governing the particular applicable state and federal programs. (2) Advise the governor on: (A) the development and implementation of state and local standards and measures; and (B) the coordination of the standards and measures; concerning the applicable federal programs. (3) Perform the duties as set forth in federal law of the particular advisory bodies for applicable federal programs. (4) Identify the workforce needs in Indiana and recommend to the governor goals to meet the investment needs. (5) Recommend to the governor goals for the development and coordination of the talent development system in Indiana. (6) Prepare and recommend to the governor a strategic plan to accomplish such goals. (7) Monitor and direct the implementation of and evaluate the effectiveness of the strategic plan. (8) Advise the governor on the coordination of federal, state, and local education and training programs and on the allocation of state and federal funds in Indiana to promote effective services, service delivery, and innovative programs. (9) Review and approve regional workforce development board plans, and work with regional workforce development boards to determine appropriate metrics for workforce programming at the state and local levels. (10) Design for implementation a comprehensive career navigation and coaching system described in this chapter. (11) Conduct a systematic and comprehensive review, analysis, and evaluation of workforce funding described in this chapter. (12) Conduct a systematic and comprehensive review, analysis, and evaluation of the college and career funding described in this chapter. (13) Based on these reviews, direct the appropriate state agencies to implement administrative changes to the delivery of these programs that align with Indiana's workforce goals, and make recommendations to the governor and the legislative council on possible legislative changes in the future. (14) Study the advisability of establishing one (1) or more real world career readiness programs as described in this chapter and report to the governor and the legislative council concerning the results. (15) Carry out other policy duties and tasks as assigned by the governor. Provides that the cabinet shall serve as the state advisory body required under certain federal laws. Requires the cabinet to develop, not later than July 1, 2018, a comprehensive career navigation and coaching system for Indiana that both (1) provides timely, comprehensive, relevant, and useful information on careers, identifying minimum information requirements, and (2) establishes strategies and identifies capacity to deliver career navigation and coaching to middle school, high school, postsecondary, and adult students with priority being given to middle school and high school students, also identifying minimum standards for such strategies. Requires all high schools to participate in the career coaching program. Requires the cabinet to submit by June 30, 2018, its progress concerning its activities through June 30, 2018, to develop the comprehensive career navigation and coaching system and to submit its recommendations by October 31, 2018. Requires the cabinet to conduct a regular review, analysis, and evaluation of all workforce related programs. Provides that the cabinet shall, before October 1 of each year, submit a report to the governor, the legislative council, and the interim study committee on fiscal policy which contains the results of the cabinet’s review, analysis, and evaluation of all workforce related programs. Requires the cabinet to conduct a college and career funding review and submit, not later than November 1, 2018, to the governor and the legislative council a report concerning the results of the review. Requires the cabinet to study the advisability of establishing one or more real world career readiness programs that combine the theory of a particular career with workforce practice or application in order to provide students with career and technical education credentials necessary to transition from school to the workforce and submit, not later than November 1, 2018, to the governor and the legislative council a report concerning the results of the study.
Application Note: The SEF administered by the IEDC, and other “workforce related programs,” will be reviewed and evaluated by the new cabinet with reporting provided to the governor, legislative council, and study committee of fiscal policy. Contents of analysis may include: cost of administration, equity/simplicity/adequacy/conformance as compared to the original purpose, workforce activities the program supports, participants that enter/use the program, participants that complete the program, fiscal year dollars used in program, workforce impact of program including ROI and/or the number of jobs created via the program.

Affected Code Section: Ind. Code § 4-4-9.7-9 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1065 § 1
Explanation: Provides that money in the rural economic development fund may be used to assist in addressing telecommunications needs in a rural area, including the awarding of grants under Ind. Code Chapter 4-4-38.

Affected Code Section: Ind. Code § 4-4-10.9-2.1 (deletion); Ind. Code § 4-4-10.9-2.2 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1065 §§ 2, 3
Explanation: Repeals the definitions of “broadband development project” and “broadband development program.”

Affected Code Section: Ind. Code § 4-4-10.9-11 (amendment); Ind. Code § 5-28-30-5 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1065 §§ 4, 8
Explanation: Removes broadband development projects from the list of industrial development projects.

Affected Code Section: Ind. Code Chapter 4-4-38 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1065 § 5
Explanation: Authorizes the office of community and rural affairs to award grants from the rural economic development fund to qualified broadband providers in connection with qualified broadband projects. Defines “qualified broadband service” as a connection to the Internet at an actual speed of at least ten (10) megabits per second downstream and at least one (1) megabit per second upstream, regardless of the technology used. Defines a “qualified broadband project” as a project for the deployment of broadband infrastructure for the provision of qualified broadband service in unserved areas in Indiana. Defines an “unserved area” as a geographic area in Indiana in which there is not at least one provider of terrestrial broadband service at the designated speeds. Provides that grant awards shall give priority to first extending the deployment of qualified broadband service to areas in which: (1) Internet connections are unavailable; or (2) the only available Internet connections provide for an actual speed of less than ten (10) megabits per second downstream. Requires annual reporting to the general assembly. Provides that every three (3) years, beginning in 2021, the state board of accounts shall conduct an audit of the grant awards during the most recent three (3) state fiscal years.

Affected Code Section: Ind. Code § 4-12-1-9 (amendment)
Effective Date: Upon Passage
Enacted By: House Bill 1002 § 2
Explanation: Requires that a summary and justification for the workforce related program must be included in the biennial budget report that is submitted to the governor and budget committee for preparation of the governor’s proposed budget bill for each appropriation in the governor’s recommended budget bill that is made to a state provider as defined in Ind. Code § 22-4.1-1-5.5 for a workforce related program.
Application Note: Requires the IEDC to provide justification/summary regarding the SEF program, and other “workforce related programs,” in its biennial budget request.

Affected Code Section: Ind. Code § 4-12-12-6 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 § 2
Explanation: Removes the annual dedication of excess funds from the state technology advancement and retention account to the minority training program grants and the back home in Indiana program.

Affected Code Section: Ind. Code § 5-13-12-8 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1374 § 37
Explanation: Replaces the term “industrial” with the term “economic.” Provides that, among other things, protection against loss on the economic development obligation or credit enhancement obligation guaranteed will be provided in loan transactions by a combination of security agreements and mortgages.

Affected Code Section: Ind. Code § 5-28-7-5 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 1
Explanation: Provides that the SEF consists of appropriations from the general assembly and money repaid to the IEDC under Ind. Code § 5-28-7-7.

Affected Code Section: Ind. Code § 5-28-7-7 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 2
Explanation: Provides that, if the IEDC determines that an entity (business, school corporation, or charter school) that has received a grant award under the SEF program is noncompliant with the terms of its grant agreement, the IEDC shall, after giving notice to the entity and an opportunity to explain the noncompliance, provide the entity with a written demand for return or repayment of an amount not to exceed the sum of all grants previously awarded to the entity. Provides that if the entity fails to repay the IEDC, the IEDC may notify the department of state revenue of the noncompliance and request that the department exercise its authority under the department’s refund set off program to recover the sum of all grants previously awarded to the entity. Provides that the IEDC is authorized to participate in the refund set off program.
Application Note: Aligns the SEF statute with existing IEDC practice, and further codifies the Indiana department of revenue as a compliance authority able to set various methods to recover grant funds previously awarded in certain cases of contractual non-compliance.

Affected Code Section: Ind. Code § 5-28-8-8 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1003 § 14
Explanation: Deletes provision requiring the IEDC to keep complete sets of records showing all transactions by the economic development fund to prepare a complete report at the end of the fiscal year for the general assembly with sufficient information to permit a complete review of the operation and financial condition of the economic development fund.

Affected Code Section: Ind. Code § 5-28-15-5 (amendment); Ind. Code § 5-28-15-5.5 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 §§ 3, 4
Explanation: Provides for the expiration of the IEDC board’s power to review and approve or reject all applicants for enterprise zone designation as of June 30, 2018. Provides for the expiration of provisions in the enterprise zone statute setting forth additional powers of the IEDC board as of December 31, 2018.

Affected Code Section: Ind. Code § 5-28-15-5.7 (addition)
Effective Date: January 1, 2019
Enacted By: House Bill 1288 § 5
Explanation: Provides that beginning after December 31, 2018, a zone urban enterprise association (U.E.A.) has the following powers, in addition to other powers that are contained in Ind. Code Chapter 5-28-15: (1) To request the waiver of a municipal ordinance or regulation as provided in Ind. Code § 5-28-15-14(c). (2) To adopt guidelines for the disqualification of a zone business from eligibility for one (1) or more incentives available to zone businesses, if the zone business does not do one (1) of the following: (A) Use all its incentives for its property or employees in the zone. (B) Remain open and operating as a zone business for twelve (12) months of the year for which the incentive is claimed. (3) To modify the boundary of the zone if the legislative body determines that the modification is in the best interest of the zone. Provides that each zone business that receives an incentive described in Ind. Code § 5-28-15-3 shall assist the zone U.E.A. in an amount determined by the legislative body of the municipality in which the zone business is located. Provides that if a zone business does not assist the zone U.E.A. as required, the legislative body of the municipality in which the zone is located may pass an ordinance disqualifying the zone business from eligibility for all incentives available to the zone businesses. Specifies that if all of a zone business’s incentives exceed one thousand dollars ($1,000) in a year, the legislative body of the municipality may, at the request of the zone U.E.A., impose an additional fee on a zone business to be paid to the zone U.E.A. in an amount equal to one percent (1%) of all its incentives to be used exclusively for the zone U.E.A.’s administrative expenses. Provides that if the legislative body disqualifies a zone business, the legislative body shall notify the department of local government finance and the department of state revenue in writing not more than thirty (30) days after the passage of the ordinance disqualifying the zone business. Provides that disqualification of a zone business is effective beginning with the taxable year in which the ordinance disqualifying the zone business is adopted.

Affected Code Section: Ind. Code § 5-28-15-6 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 6
Explanation: Provides that the section governing the enterprise zone fund expires December 31, 2018. Provides that any money remaining in the enterprise zone fund after its expiration shall revert to the economic development fund established under Ind. Code § 5-28-8-5.

Affected Code Section: Ind. Code § 5-28-15-7 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 7
Explanation: Provides that the section which requires an enterprise zone business to submit an annual summary of tax credits and exemptions, the payment of fees, and penalties and sanctions expires December 31, 2018.

Affected Code Section: Ind. Code § 5-28-15-7.3 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 8
Explanation: Provides that a zone business that claims 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 the zone U.E.A., a verified summary concerning the amount of tax credits and exemptions claimed by the zone business in the preceding year; and (2) pay the amount specified in Ind. Code § 5-28-15-5.7(b) to the zone U.E.A. Provides that a zone U.E.A. may grant one (1) extension of time in order for a zone business to comply with the reporting requirement. Specifies that in order to qualify for an extension, a zone business must apply to the zone U.E.A. before June 1 on a form specified by the zone U.E.A. Provides that the extension may not exceed forty-five (45) days. Provides that if a zone business fails to comply with these reporting requirement before June 1 (or before July 16 if an extension is granted), the zone U.E.A. may: (1) deny all the tax credit and exemption incentives available to the zone business because the business was a zone business for that year; and (2) disqualify the zone business from further participation in the enterprise zone program until the zone business: (A) petitions the zone U.E.A. for readmission to the enterprise zone program; and (B) pays the amount required under Ind. Code § 5-28-15-5.7(b).

Affected Code Section: Ind. Code § 5-28-15-7.5 (addition)
Effective Date: January 1, 2019
Enacted By: House Bill 1288 § 9
Explanation: Provides that a summary submitted to the corporation or a zone U.E.A. or a record obtained by the corporation is confidential. Specifies that a U.E.A. member, an agent of a U.E.A. member, or an employee of the IEDC who knowingly or intentionally discloses information that is confidential commits a Class A misdemeanor.

Affected Code Section: Ind. Code § 5-28-15-9 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 10
Explanation: Provides that the section governing the designation of enterprise zones and the application and review requirements imposed on the IEDC expires December 31, 2018. Provides that the IEDC shall not evaluate an enterprise zone application after June 31, 2018.

Affected Code Section: Ind. Code § 5-28-15-10 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 11
Explanation: Provides that the board of the IEDC may not renew an enterprise zone during a phase out period after June 30, 2018. Provides that an enterprise zone that was not renewed by the board of the IEDC between January 1, 2017, and June 30, 2018, may be renewed for an additional five (5) year period if the fiscal body of the municipality adopts a resolution to renew the enterprise zone for an additional five (5) year period. Specifies that the enterprise zone may not be renewed after the expiration of this final five (5) year period.

Affected Code Section: Ind. Code § 5-28-15-11 (amendment)
Effective Date: January 1, 2019
Enacted By: House Bill 1288 § 12
Explanation: Removes the provision that provided that inactive or closed military installations as enterprise zones are not subject to the limit of two (2) new enterprise zones each year under Ind. Code § 5-28-15-9(a).

Affected Code Section: Ind. Code § 5-28-15-12 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 13
Explanation: Provides that the section outlining the board’s ability to enlarge enterprise zone boundaries expires December 31, 2018.

Affected Code Section: Ind. Code § 5-28-15-13 (amendment)
Effective Date: January 1, 2019
Enacted By: House Bill 1288 § 14
Explanation: Removes the provisions relating to an application for designation as an enterprise zone.

Affected Code Section: Ind. Code § 5-28-15-14 (amendment)
Effective Date: January 1, 2019
Enacted By: House Bill 1288 § 15
Explanation: Removes provisions authorizing the U.E.A. to do the following: (1) Recommend that the board of the IEDC modify a zone boundary or disqualify a zone business from eligibility for one (1) or more benefits or incentives available to zone businesses. (2) Request that the board of the IEDC modify any state rule that is in effect in the zone.

Affected Code Section: Ind. Code § 5-28-15-15 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 16
Explanation: Provides that the statute outlining the disqualification of a business’s ability to claim benefits and incentives from an enterprise zone when the business reduces or ceases its business activity in a nonzone operation in order to relocate in an enterprise zone expires December 31, 2018.

Affected Code Section: Ind. Code § 5-28-16-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1003 § 15
Explanation: Revises the requirement that the (IEDC) must provide certain information to require it to include information concerning grants and loans made under this chapter in the economic incentives and compliance report submitted under Ind. Code Chapter 5-28-28.

Affected Code Section: Ind. Code § 5-28-16-6 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1003 § 16
Explanation: Replaces a reference to an annual report with a reference to the economic incentives and compliance report submitted under Ind. Code Chapter 5-28-28.

Affected Code Section: Ind. Code § 5-28-17-6 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1003 § 17
Explanation: Replaces a reference to Ind. Code § 4-3-22-16 with Ind. Code § 4-22-2-28.1(b).

Affected Code Section: Ind. Code § 5-28-29-9 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 17
Explanation: Amends the definition of “lender” under the capital access program for the period beginning after June 30, 2018, and ending before July 1, 2021, to include: (1) a credit corporation; (2) an entity that: (i) extends more than seventy-five percent (75%) of all eligible loans made in the previous twelve (12) month period to minority owned businesses; and (ii) is approved as a lender by the IEDC in accordance with policy guidelines adopted by the board of the IEDC; or (3) a qualified “eligible intermediary” participating in the federal Small Business Administration Microloan Program, and who is approved as a lender by the IEDC in accordance with policy guidelines adopted by the board of the IEDC, that has entered into an agreement with the IEDC to participate in the capital access program.

Affected Code Section: Ind. Code § 5-28-29-17 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 18
Explanation: Provides that a loan originated by an entity that is a qualified “eligible intermediary” is not an eligible loan under the capital access program if the principal loan amount exceeds fifty thousand dollars ($50,000).

Affected Code Section: Ind. Code § 5-28-29-25 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 19
Explanation: Decreases the minimum premium charges payable to the reserve fund account for the capital access program from one and five tenths percent (1.5%) to one percent (1%). Repeals the definition of “disadvantaged business enterprise” used for purposes of determining the premium charges payable to a reserve fund account and adds the definition of “small disadvantaged business” under the federal regulation that applies to the United States Small Business Administration in its place.

Affected Code Section: Ind. Code § 5-28-30-1 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1065 § 7
Explanation: Repeals the definition of “broadband development project.”

Affected Code Section: Ind. Code § 5-28-30-11 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1374 § 53
Explanation: Adds to the conditions required in order for the IEDC to guarantee a loan under the industrial development loan guaranty program that the IEDC must submit the proposed guarantee or direct loan to the budget agency. Provides that the budget agency shall verify whether money is available for the proposal and that the proposal is in compliance with the industrial development loan guaranty program. Provides that the budget agency may submit the proposal, with its comments, to the budget committee for review. Specifies that the IEDC may not approve a guarantee or direct loan until the budget committee has reviewed the guarantee or direct loan.

Affected Code Section: Ind. Code Chapter 5-28-33 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1065 § 9
Explanation: Repeals the statute establishing the high speed Internet service deployment and adoption initiative administered by the IEDC.

Affected Code Section: Ind. Code § 5-28-33-8 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1374 § 57
Explanation: Repeals the requirement that IEDC consult with the Indiana finance authority in implementing the high speed internet service deployment and adoption initiative to avoid unnecessary duplication of efforts under Ind. Code Chapter 8-1-33.

Affected Code Section: Ind. Code § 5-32-1-1 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1074 § 1
Explanation: Provides that the article regarding the employment of construction managers as constructors for public works projects only applies to a public works project of a public agency, other than a state educational institution, that begins after June 30, 2017, and before July 1, 2020.

Affected Code Section: Ind. Code § 5-32-1-3 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1074 § 2
Explanation: Repeals the expiration of the article regarding the employment of construction managers as constructors for public works projects on July 1, 2020.

Affected Code Section: Ind. Code § 5-32-2-15 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1074 § 3
Explanation: Provides that before July 1, 2020, “public agency” has the meaning set forth in Ind. Code § 5-30-1-11. Provides that after June 30, 2020, “public agency” will mean a state educational institution (as defined in Ind. Code § 21-7-13-32).

Affected Code Section: Ind. Code § 6-2.5-4-16.7 (addition)
Effective Date: July 1, 2018
Enacted By: Senate Bill 257 § 1
Explanation: Provides that a person is a retail merchant making a retail transaction when the person sells, rents, leases, or licenses for consideration the right to use prewritten computer software delivered electronically. Provides that a transaction in which an end user purchases, rents, leases, or licenses the right to remotely access prewritten computer software over the Internet, over private or public networks, or through wireless media: (1) is not considered to be a transaction in which prewritten computer software is delivered electronically; and (2) does not constitute a retail transaction.

Affected Code Section: Ind. Code § 6-3.1-7-2 (amendment)
Effective Date: January 1, 2019
Enacted By: House Bill 1288 § 20
Explanation: Removes the enterprise zone loan interest credit for taxpayers who pay the registration fee charged to zone businesses under Ind. Code § 5-28-15-5. Makes conforming changes to the section on urban enterprise associations.

Affected Code Section: Ind. Code § 6-3.1-13-24 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1003 § 25
Explanation: Amends the economic development for a growing economy tax credit evaluation requirements. Provides that the IEDC shall include a report on the evaluation in the economic incentives and compliance report submitted under Ind. Code Chapter 5-28-28 for the calendar year in which the evaluation is completed.

Affected Code Section: Ind. Code § 6-3.1-13-28 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1003 § 26
Explanation: Repeals section which required the department of state revenue to submit each year to the budget committee a report specifying the amount of credits granted under Ind. Code § 6-3.1-13 during the immediately preceding state fiscal year.

Affected Code Section: Ind. Code § 6-3.1-26-25 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1003 § 27
Explanation: Amends the Hoosier business investment tax credit. Removes the reporting requirements. Provides that the department of state revenue shall submit information to the IEDC concerning the use of the credit for logistics investments under this chapter. Provides that the information submitted by the department of state revenue must include specific information regarding the previous calendar year (as opposed to fiscal year) for logistics investments. Provides that the IEDC shall include information received or compiled under this section in the economic incentives and compliance report submitted under Ind. Code Chapter 5-28-28 for the calendar year in which the evaluation is completed.

Affected Code Section: Ind. Code § 6-8.1-9.5-12 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1288 § 22
Explanation: Makes technical corrections.

Affected Code Section: Ind. Code § 7.1-3-1-14 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 1 § 2
Explanation: Provides that holders of retailers’ permits, that otherwise satisfies the requirements under this chapter, and holders of dealers’ permits may sell alcoholic beverages for carryout on Sunday from noon until 8 p.m. Provides that holders of a retailer’s permit may sell appropriate alcoholic beverages for consumption on licensed premises from Monday through Sunday from 7 a.m. until 3 a.m. the following day.

Affected Code Section: Ind. Code § 8-1-29.5-7 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1065 § 10
Explanation: Removes reference to the Indiana broadband development program established by Ind. Code § 8-1-33-15.

Affected Code Section: Ind. Code Chapter 8-1-33 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1065 § 11
Explanation: Repeals the statute establishing the Indiana broadband development program administered by the Indiana finance authority.

Affected Code Section: Ind. Code § 20-20-38-2 (deletion)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 § 4
Explanation: Repeals the definition of “council” relating to the state workforce innovation council.

Affected Code Section: Ind. Code § 20-20-38-3 (amendment); Ind. Code § 20-20-38-4 (amendment); Ind. Code § 20-20-38-6 (amendment); Ind. Code § 20-20-38-11 (amendment); Ind. Code § 20-20-38-12 (amendment); Ind. Code § 20-20-38-13 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 §§ 5, 6, 7, 8, 9, 10
Explanation: Replaces references to the term “council” with the term “cabinet.”

Affected Code Section: Ind. Code § 20-20-38-14.5 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 3
Explanation: Provides that an emancipated student or the parent of a student enrolled in a career or technical course may voluntarily release information, on a form prescribed by the department of education, pertaining to the student’s enrollment in the career and technical education course to potential employers that contact the school to recruit students with particular career and technical skills. Provides that if the emancipated student or a student’s parent voluntarily releases information under subsection (a), the school shall provide the department of workforce development with a copy of the student’s voluntarily released enrollment information. Provides that upon receipt, the department of workforce development may provide the student’s voluntarily released enrollment information to potential employers that contact the department to recruit students with particular career and technical skills. Provides that the voluntary release form must comply with the federal Family Education Rights and Privacy Act (20 U.S.C. § 1232g et seq.).

Affected Code Section: Ind. Code Chapter 20-20-45 (addition)
Effective Date: Upon Passage
Enacted By: Senate Bill 172 § 1
Explanation: Establishes the next level computer science grant program to provide grants to eligible entities to develop and implement high quality teacher professional development programs in computer science. Provides that “eligible entity” means (1) postsecondary educational institutions or (2) any organizations that provide a nationally recognized and high quality professional development training program in computer science education. Establishes the next level computer science fund which must be used to provide grants to eligible entities to develop and implement high quality teacher professional development programs in computer science. Provides that the department of education shall administer the grant program and the fund. Provides that eligible entities may apply to receive a grant from the fund on a form provided by the department of education beginning July 1, 2019. Specifies that the department of education, in consultation with the governor’s office, shall develop guidelines to award grants to eligible entities. Provides that the guidelines must include: (1) the ability of an eligible entity to provide effective training for a teacher who does not have previous exposure to teaching computer science; (2) the ability of an eligible entity to implement effective practices for providing professional development in computer science that include: (A) the eligible entity’s ability to provide a teacher with practical training in teaching computer science that is founded on evidence based research; and (B) the eligible entity’s ability to tailor the professional development program to the needs of the teacher and the students the teacher serves; and (3) any other criteria the department of education considers relevant. Provides that notwithstanding any other law or policy to the contrary, before August 1, 2018, the state superintendent of public instruction shall enter into a contract for professional development services with an organization that provides a nationally recognized training program for professional development in computer science education from early learning through postsecondary education. Provides that the department of education shall biannually submit to the governor a progress report regarding the development and administration of the program and fund and the status of public schools in meeting the requirements under Ind. Code § 20-30-5-23.

Affected Code Section: Ind. Code § 20-30-5-7 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 172 § 2
Explanation: Adds computer science to the list of studies that must be included in each school corporation’s curriculum after June 30, 2021.

Affected Code Section: Ind. Code § 20-30-5-14 (amendment)
Effective Date: July 1, 2018
Enacted By: Senate Bill 297 § 1
Explanation: Renames the “Indiana career explorer program and curriculum” to the “Indiana career explorer program and standards.” Replaces a reference to “curriculum” with “standards” and adds that such standards developed by the department of workforce development be aligned to interdisciplinary employability skills standards prescribed in subsection (c). Provides that, not later than July 1, 2019, each school within a school corporation shall include interdisciplinary employability skills standards established by the department of education, in conjunction with the department of workforce development and approved by the state board of education, in the school’s curriculum. Provides that, if the department determines that the pilot program for instruction in and use of the Indiana career explorer program and standards should be extended, the department of education, in consultation with the department of workforce development, shall increase the number of schools involved in the pilot program by at least fifteen (15) additional schools, if possible based on the interest from schools. Provides that the state board of education, in consultation with the department of education and the department of workforce development, may approve an alternative Internet based system and standards under a specific set of circumstances determined to exist by the state board of education.

Affected Code Section: Ind. Code § 20-30-5-23 (addition)
Effective Date: Upon Passage
Enacted By: Senate Bill 172 § 3
Explanation: Requires that after June 30, 2021, each public high school, including each charter school, must offer at least one (1) computer science course as a one (1) semester elective in the public high school’s curriculum at least once each school year for high school students. Provides that after June 30, 2021, each public school, including each charter school, shall include computer science in the public school’s curriculum for students in kindergarten through grade twelve (12). Provides that if a public school fails to comply with this section, the department of education shall assist the public school in meeting the requirements of this section.

Affected Code Section: Ind. Code § 20-32-4-1.5 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 4
Explanation: Provides that when an apprenticeship is established as a graduation pathway requirement, the state board shall establish as an apprenticeship only an apprenticeship program registered under the federal National Apprenticeship Act (29 U.S.C. § 50 et seq.) or another federal apprenticeship program administered by the United States Department of Labor.

Affected Code Section: Ind. Code § 20-43-8-0.3 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 5
Explanation: Defines “apprenticeship” and “apprenticeship program” as an apprenticeship program registered under the federal National Apprenticeship Act (29 U.S.C. § 50 et seq.) or another federal apprenticeship program administered by the United States Department of Labor.

Affected Code Section: Ind. Code § 20-43-8-0.7 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 6
Explanation: Defines “work based learning course” as a program delivered in an employment relationship that provides a worker with paid work experience and corresponding classroom instruction.

Affected Code Section: Ind. Code § 21-12-1-8 (amendment); Ind. Code § 21-18-6-1 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 §§ 11, 13
Explanation: Makes corrections to replace references to the state workforce innovation council with references to the department of workforce development.

Affected Code Section: Ind. Code § 21-12-6-7 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1074 § 4
Explanation: Makes changes to the statute regarding the conditions required to qualify for the renewal of a twenty-first century scholarship program scholarship by removing the requirements that the student recipient complete a specific number of credit hours each academic year. Provides that if the student initially enrolls in an eligible institution for an academic year after August 31, 2019, the student must complete a student success program designed by the commission in coordination with eligible institutions to be eligible for renewal of the scholarship.

Affected Code Section: Ind. Code § 21-12-6-10.3 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1074 § 5
Explanation: Makes changes regarding the award amounts to twenty-first century scholarship program scholarship applicants who attend a private, approved postsecondary educational institution to the greater of the (A) average of the educational costs of all state educational institutions, not including Ivy Tech Community College; or (B) amount the applicant is eligible to receive under Ind. Code Chapter 21-12-4.

Affected Code Section: Ind. Code § 21-12-8-9 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 8
Explanation: Revises eligibility criteria for applicants for high value workforce ready credit-bearing grants. Provides that an applicant is eligible for the high value workforce ready credit-bearing grant if the applicant maintains satisfactory academic progress, unless one (1) or more of the following conditions is met: (A) The applicant has not attended an eligible institution for the immediately preceding two (2) academic years. (B) The applicant attended an eligible institution at any time during the immediately preceding two (2) academic years and the applicant maintained satisfactory academic progress during the period in which the applicant attended the eligible institution. Provides that if an applicant is identified as dependent by the Free Application for Federal Student Aid (FAFSA), the applicant must: (1) meet specific criteria set out in subsection (b), with specific exclusions; (2) enroll full time for purposes of federal financial aid; (3) maintain satisfactory academic progress, as determined by the eligible institution; and (4) complete a workforce ready grant success program, as determined by the commission for higher education, if the applicant graduates from high school after December 31, 2018. Provides that if the demand for high value workforce ready credit-bearing grants exceeds the appropriation, the commission for higher education shall prioritize applicants who are classified as independent as determined by FAFSA.

Affected Code Section: Ind. Code § 21-12-8-9 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1074 § 6
Explanation: Provides that an applicant who does not maintain satisfactory academic progress required to be eligible for a high value workforce ready credit-bearing grant is still eligible for the grant if the applicant meets one (1) of the following: (1) the applicant has not attended an eligible institution for the immediately preceding two (2) academic years; and (2) the applicant: (A) attended an eligible institution at any time during the immediately preceding two (2) academic years; and (B) maintained satisfactory academic progress, as determined by the eligible institution, during the two (2) year period in which the applicant attended the eligible institution.

Affected Code Section: Ind. Code § 21-12-8-12 (amendment); Ind. Code § 21-16-4-7 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 §§ 12, 14
Explanation: Makes corrections to replace references to the state workforce innovation council with references to the governor’s workforce cabinet.

Affected Code Section: Ind. Code § 21-13-9-6 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1074 § 7
Explanation: Makes the following changes concerning the primary care shortage area scholarship: (1) Amends the practice requirements to receive a scholarship from four (4) years to one (1) year for each class year for which the recipient was awarded a scholarship. (2) Amends the repayment requirements for noncompliance with a primary care practice agreement. (3) Allows the commission for higher education to impose and collect interest on unpaid repayment amounts.

Affected Code Section: Ind. Code § 21-13-9-8 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1074 § 8
Explanation: Provides that if the commission for higher education and a recipient of a scholarship enter into a new written agreement that complies with the primary care shortage area scholarship chapter, the commission and the recipient may terminate an agreement entered into or renewed before July 1, 2018.

Affected Code Section: Ind. Code § 21-16-1-8 (amendment)
Effective Date: July 1, 2019
Enacted By: House Bill 1002 § 9
Explanation: Defines “eligible student” for the employment aid readiness network (EARN) Indiana program as an individual who is enrolled as a part-time postsecondary student, regardless of whether a part-time student is qualified to receive an adult student grant under Ind. Code § 21-12-1-4.5, and who also meets other outlined requirements.

Affected Code Section: Ind. Code § 21-18-3-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1074 § 9
Explanation: Provides that the chairperson of the commission of higher education shall appoint a seven (7) member student member nominating committee comprised of students from state educational institutions, with not more than (1) student from any one (1) state educational institution. Deletes the requirement that five (5) full-time faculty serve on the nominating committee with the students.

Affected Code Section: Ind. Code § 21-18-3-4.5 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1074 § 10
Explanation: Requires the chairperson of the commission of higher education to appoint a seven (7) member faculty member nominating committee consisting of seven (7) full-time faculty members from state educational institutions, with not more than one (1) faculty member from any one (1) state educational institution.

Affected Code Section: Ind. Code § 21-18.5-1-3 (amendment); Ind. Code § 21-18.5-1-4 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 §§ 15, 16
Explanation: Clarifies that the references in these sections to the state workforce innovation council under Ind. Code § 22-4.1-22-3 only applies before its repeal.

Affected Code Section: Ind. Code § 21-18.5-4-11 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 § 18
Explanation: Makes corrections to reference the governor’s workforce cabinet in place of the state workforce innovation council.

Affected Code Section: Ind. Code Chapter 21-18.5-7 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 10
Explanation: Requires educational institutions offering certificate, diploma, or other non-degree credential programs subject to approval by the Indiana state board of nursing to obtain approval from the board for proprietary education under Ind. Code § 21-18.5-6.

Affected Code Section: Ind. Code § 21-22-3-3 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 16
Explanation: Provides that the number of members of the state board of trustees must equal the number of regions established by the state board of trustees plus one (1) additional member, but shall not exceed fifteen (15) total members. Provides that the state board of trustees shall divide the state of Indiana into regions and that each region shall be represented by one (1) trustee. Removes the requirement that one (1) member of the state board of trustees reside in each region established by the state board of trustees. Replaces the term “regional board” with the term “campus board.”

Affected Code Section: Ind. Code § 21-22-3-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 17
Explanation: Provides that all members of the state board of trustees who are serving on July 1, 2018, are entitled to serve until the end of their terms. Specifies that at the end of the trustee’s term or otherwise upon the occurrence of a vacancy, the governor may appoint a trustee in accordance with Ind. Code §21-22-3-3. Removes the requirement that the regional board recommend to the governor one (1) or more qualified persons to fill the vacancy. Removes the requirement that each trustee appointed to fill a vacancy shall represent the same region as the trustee’s predecessor.

Affected Code Section: Ind. Code § 21-22-6-1 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 18
Explanation: Replaces the statement that the state board of trustees may “divide Indiana into appropriate regions” with the statement that the state board of trustees may “establish campuses and service areas.” Removes the terms “region,” “regions,” and “regional” and instead includes “campus” and “workforce aligned.” Makes other conforming amendments.

Affected Code Section: Ind. Code § 21-22-6-2 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 19
Explanation: Provides that whenever the state board of trustees establishes a campus, it shall appoint a campus board of trustees.

Affected Code Section: Ind. Code § 21-22-6-3 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 20
Explanation: Provides that membership in the campus board may include a representative from a school corporation that has part of its district within the campus service area and at least one (1) Ivy Tech Community College student who is enrolled at the campus.

Affected Code Section: Ind. Code § 21-22-6-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 21
Explanation: Provides that the campus board shall nominate and submit to the state board the names of one (1) or more candidates to fill a vacancy on the campus board within ninety (90) days, as opposed to forty (40) days, after the vacancy occurs.

Affected Code Section: Ind. Code § 21-22-6-8 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 25
Explanation: Provides, that among other things, the campus board shall: (1) Make a careful analysis of the educational needs and opportunities of the campus service area, including an analysis of programs and pathways designed to meet workforce and employer demand. (2) Identify and recommend methods to optimize the use of facilities and equipment to support programs and pathways designed to meet workforce and employer demand. (3) Facilitate and develop cooperation with employers, community leaders, economic development efforts, area career and technical education centers, and other public and private education and training entities in order to provide postsecondary general, liberal arts, and occupational and technical education and training designed to meet workforce and employer demand in an efficient and cost effective manner and to avoid duplication of services.

Affected Code Section: Ind. Code Chapter 21-30-6 (deletion)
Effective Date: Upon Passage
Enacted By: House Bill 1074 § 12
Explanation: Repeals the statute providing for the sale or conveyance of real property received by gifts, bequests, or devises by a state educational institution.

Affected Code Section: Ind. Code § 21-36-3-4 (amendment)
Effective Date: Upon Passage
Enacted By: House Bill 1074 § 13
Explanation: Provides that the board of trustees of a state educational institution may determine that any real estate (including any real estate acquired by gift, bequest, or devise) for which the title of the real estate is in the name of the state educational institution or the state of Indiana for the use and benefit of the state educational institution is not needed for any of the purposes of the state educational institution and that it would be advantageous for the state educational institution to give or to sell the real estate.

Affected Code Section: Ind. Code § 21-36-3-6 (amendment)
Effective Date: Upon Passage
Enacted By: House Bill 1074 § 14
Explanation: Provides that the value of real estate to be sold by a state educational institution shall be determined by two (2) disinterested appraisers appointed by the board of trustees of the state educational institution. Provides that real estate may be sold or conveyed for less than the appraised value if the board of trustees of a state educational institution approves a resolution that authorizes the sale or conveyance of real estate for less than the appraised value. Makes conforming changes to reflect that these restrictions apply to Ivy Tech Community College.

Affected Code Section: Ind. Code § 21-36-3-8 (amendment)
Effective Date: Upon Passage
Enacted By: House Bill 1074 § 15
Explanation: Amends the statute concerning the sale of real estate by a state educational institution to provide that the price that is agreed on by the purchaser and the board of trustees shall be approved in a resolution by the board of trustees of the state education institution. Provides that following the approval, the board of trustees shall send a copy of the resolution to the governor.

Affected Code Section: Ind. Code § 21-36-3-9 (deletion)
Effective Date: Upon Passage
Enacted By: House Bill 1074 § 16
Explanation: Repeals the statute requiring the purchaser of a state educational institution’s real property to make payment to the treasurer of the educational institution.

Affected Code Section: Ind. Code § 21-36-3-10 (deletion)
Effective Date: Upon Passage
Enacted By: House Bill 1074 § 17
Explanation: Repeals the statute providing that the treasurer of the state educational institution shall issue a receipt to the purchaser of real estate being sold or conveyed.

Affected Code Section: Ind. Code § 21-36-3-11 (deletion)
Effective Date: Upon Passage
Enacted By: House Bill 1074 § 18
Explanation: Repeals the statute requiring the purchaser of real estate sold by a state educational institution to submit a receipt to the state auditor and a request to convey title in the form of a certified copy of the resolution.

Affected Code Section: Ind. Code § 21-36-3-12 (deletion)
Effective Date: Upon Passage
Enacted By: House Bill 1074 § 19
Explanation: Repeals the statute requiring that upon receipt of the request from the purchaser, a deed for the sale of real estate by a state educational institution will be executed, signed, and attested by specific state officers.

Affected Code Section: Ind. Code § 21-36-3-13 (deletion)
Effective Date: Upon Passage
Enacted By: House Bill 1074 § 20
Explanation: Repeals the statute requiring that the proceeds derived from the sale and conveyance of real estate by a state educational institution must be received and kept by the state education institution in a separate and distinct fund.

Affected Code Section: Ind. Code § 21-36-3-14 (deletion)
Effective Date: Upon Passage
Enacted By: House Bill 1074 § 21
Explanation: Repeals the statute concerning the reinvestment and use of proceeds from the disposition of real estate by a state educational institution.

Affected Code Section: Ind. Code § 21-38-2-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 32
Explanation: Transforms Ivy Tech Community College’s regional boards of trustees to the campus boards of trustees.

Affected Code Section: Ind. Code § 21-41-2-2 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 34
Explanation: Provides that a state educational institution may not establish a campus without the approval of the commission for higher education or without specific authorization by the general assembly.

Affected Code Section: Ind. Code § 21-41-5-12 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 36
Explanation: Provides that Ivy Tech Community College must report to the department of workforce development specific information on each “campus” instead of on each “region.”

Affected Code Section: Ind. Code § 22-4-4-2 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1036 § 1
Explanation: Excludes worker’s compensation and occupational diseases compensation payments from the definition of “wages” for unemployment insurance purposes.

Affected Code Section: Ind. Code § 22-4-13.3-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1036 § 2
Explanation: Provides that an employer that is required to withhold income to repay unemployment insurance benefit overpayments may collect a fee equal to twelve dollars ($12). Provides that if the employer chooses to impose a fee, the fee shall be allocated as follows: (1) Fifty percent (50%) of the fee shall be paid by the individual subject to withholding, and that amount is deductible by the employer from the individual’s disposable earnings. (2) Fifty percent (50%) of the fee shall be paid by the department of workforce development. Provides that the fee may be collected only once by an employer for each notice provided by the department of workforce development. Provides that the employer may collect the entire fee from one (1) or more of the initial withholdings from the individual’s disposable earnings, or alternatively, the employer may collect the fee ratably over the number of pay periods for which the withholdings from the individual’s disposable earnings are required. Specifies that if an employer chooses to collect a fee, the employer shall notify the department of workforce development in the manner and form prescribed by the department, and the amount to be withheld must be reduced, if necessary, to avoid exceeding the maximum amount permitted to be deducted under Ind. Code § 24-4.5-5-105(3).

Affected Code Section: Ind. Code § 22-4-13.3-8 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1036 § 3
Explanation: Provides that an individual who receives an adverse decision following an administrative hearing may submit, not later than fifteen (15) days after the date of the decision, a request in writing to the commissioner of the department of workforce development that the commissioner or the commissioner’s designee review the decision in the manner prescribed by the department. Specifies that if the commissioner appoints a designee to review the decision, the commissioner shall not appoint as a designee an employee of the department’s unemployment insurance program. Provides that the decision of the commissioner or the commissioner’s designee is final.

Affected Code Section: Ind. Code § 22-4.1-20-1.5 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 38
Explanation: Defines the term “work Indiana program” as the short term certification training program developed and administered by the department of workforce development for individuals enrolled in adult education.

Affected Code Section: Ind. Code § 22-4.1-20-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 39
Explanation: Requires at least twenty-five percent (25%) of the money appropriated by the general assembly for adult education or the work Indiana program to be used: (1) to reimburse an eligible provider for adult education that is provided to individuals who meet certain requirements; or (2) for adult education grants to employers. Provides that an employer is eligible for an adult education grant for each eligible employee who obtains a high school diploma or a high school equivalency diploma through a program organized or funded by the employer. Specifies that the amount of the grant is the lesser of five hundred dollars ($500) or the out-of-pocket expenditure made by the employer. Provides that in order to qualify as an eligible employee, an individual must meet all of the following criteria: (1) The individual must be at least eighteen (18) years of age and not enrolled in a school corporation’s kindergarten through grade twelve (12) educational program. (2) The individual must be a resident of Indiana for at least thirty (30) days before enrolling in a program of adult education. (3) The individual must be employed on a part-time or full-time basis in Indiana. (4) When initially employed by the employer, the individual: (A) did not have sufficient high school credits to earn a high school diploma; or (B) had not passed the examination to earn a high school equivalency diploma or a general educational development (GED) diploma.

Affected Code Section: Ind. Code Chapter 22-4.1-22 (deletion)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 § 33
Explanation: Repeals the state workforce innovation council.

Affected Code Section: Ind. Code Chapter 22-4.1-22.5 (addition)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 § 34
Explanation: Provides for the general responsibilities concerning the transfer of responsibilities from the state workforce innovation council to the governor’s workforce cabinet. Abolishes the state workforce innovation council. Provides that the following are transferred from the state workforce invocation council to the governor’s workforce cabinet: (1) all real and personal property of the state workforce innovation council; (2) all powers, duties, assets, and liabilities of the state workforce innovation council; and (3) all appropriations of the state workforce innovation council. Provides that all rules previously adopted by the state workforce innovation council shall be treated as though they were adopted by the governor’s workforce cabinet until the cabinet adopts new rules or policies. Provides that any statutory references to the state workforce innovation council shall be treated as references to the governor’s workforce cabinet. Provides that any contracts entered into by the state workforce innovation council shall be treated as a contract of the governor’s workforce cabinet. Provides that the repeal of the state workforce innovation council does not affect the rights, duties, or obligations of the governor’s workforce cabinet or a person who has previously contracted with the state workforce innovation council. Provides that a person or the governor’s workforce cabinet may enforce a right to compel performance of a duty for a contract as if the state workforce innovation council had not been abolished.

Affected Code Section: Ind. Code § 22-4.1-24-2 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 § 35
Explanation: Replaces the requirement that a report for a new workforce related program by a state provider be provided to the council with a requirement that the report must be provided to the cabinet.

Affected Code Section: Ind. Code Chapter 22-4.1-25 (addition)
Effective Date: July 1, 2018
Enacted By: Senate Bill 297 § 2
Explanation: Establishes the work ethic certificate program to: (1) connect employers to local school corporations and schools to create a collaborative partnership that benefits the community; (2) provide high school students with an understanding of necessary employability skills for in-demand jobs and allow students an opportunity to demonstrate their understanding of the employability skills while in high school; and (3) provide employers with potential employees who understand the values and importance of responsibility and perseverance in the workplace. Requires the department of workforce development to administer the work ethic certificate program. Provides that the department of workforce development shall develop the work ethic certificate program in consultation with employers, community based programs, and postsecondary educational institutions. Provides that the department of workforce development shall develop application guidelines for the work ethic certificate program. Provides that a school corporation, school, consortium of school corporations or schools, or a local workforce development board serving schools may apply to participate in the program at a time and in a manner prescribed by the department of workforce development. Specifies that the department of workforce development shall align the program to interdisciplinary employability skills standards prescribed in Ind. Code § 20-30-5-14(c).

Affected Code Section: Ind. Code § 22-4.1-21-9 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 40
Explanation: Provides that all educational institutions offering programs requiring approval by the Indiana state board of nursing under Ind. Code § 25-23-1-7 are not “postsecondary proprietary educational institutions.”

Affected Code Section: Ind. Code Chapter 22-4.1-26 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 41
Explanation: Establishes the next level jobs employer training grant program. Provides that the program is established to provide grants to reimburse training costs to employers for newly trained employees. Provides that the department of workforce development shall administer the program. Provides that during the state fiscal year beginning July 1, 2018, the department of workforce development may allocate not more than ten million dollars ($10,000,000) from the fiscal year appropriation for career and technical education innovation and advancement for the program. Specifies that eligible employees must be trained, hired, and retained for at least six (6) months by the employer. Provides that if an eligible employee separates from employment with the employer that provided the training in order to accept employment with another employer before the end of the six (6) month period, the retention requirement is waived. Provides that eligible employer must be in one of the following sectors: (1) manufacturing; (2) technology business services; (3) transportation and logistics; (4) health sciences; (5) building and construction; and (6) agriculture. Provides that eligible training must be job skills training that ties to an in demand occupation. Specifies that human resource training and job shadowing are not eligible training programs. Provides that the maximum grant amount provided to an employer for each eligible employee is five thousand dollars ($5,000), with a maximum grant amount to a particular employer of fifty thousand dollars ($50,000).
Application Note: Codifies and sets new statutory conditions for the Next Level Employer Training Grant that was launched as a pilot program by the department of workforce development in 2017.

Affected Code Section: Ind. Code Chapter 24-4-21 (addition)
Effective Date: Upon Passage
Enacted By: Senate Bill 52 § 9
Explanation: Defines the terms “certificate of analysis,” “independent testing laboratory,” and “low THC hemp extract.” Provides that a person may distribute low THC hemp extract in Indiana only if the product: (1) has been approved by the federal Food and Drug Administration or the federal Drug Enforcement Agency as a prescription or over the counter drug; or (2) meets the requirements of this chapter. Provides that a person may distribute low THC hemp extract in Indiana only if the distributor has a certificate of analysis prepared by an independent testing laboratory showing that: (1) the low THC hemp extract is the product of a batch tested by the independent testing laboratory; and (2) the independent testing laboratory determined that the batch contained not more than three-tenths percent (0.3%) total delta-9-THC, including precursors, by weight, based on the testing of a random sample of the batch. Provides that before July 1, 2018, a person may distribute low THC hemp extract in Indiana without having met the requirements described above. Specifies the packaging requirements for low THC hemp extract. Provides that after July 1, 2018, low THC hemp extract may be distributed in Indiana without having met the packaging requirements.

Affected Code Section: Ind. Code § 25-21.8-4-2 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 50 § 36
Explanation: Changes a reference to the department of workforce development from a reference to the state workforce innovation council.

Affected Code Section: Ind. Code § 25-23-1-7.3 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 42
Explanation: Provides that until July 1, 2021, certain individuals with a Bachelor of Science degree in nursing may serve as a nursing faculty member in an associate degree nursing program without yet having obtained a master’s degree subject to the approval of the Indiana state board of nursing.

Affected Code Section: Ind. Code § 36-7-22-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1278 § 1
Explanation: Provides that a person who intends to file a petition for the establishment of an economic improvement district must first provide written notice to the clerk in the case of a municipality or the county auditor in the case of a county. Provides that the petition to establish an economic improvement district must be filed with the clerk or county auditor, rather than a unit’s legislative body, not later than one hundred twenty (120) days after the date on which the notice of intent required above is filed with the clerk or county auditor. Requires the clerk or county auditor to retain the paper copy of the petition to establish an economic improvement district for not less than ninety (90) days from the date the petition is filed with the clerk or the county auditor.

Affected Code Section: Ind. Code § 36-7-22-6 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1278 § 2
Explanation: Transfers responsibilities of the legislative body to publish notice of a hearing and mailing copies of the notice to each owner of real property within the proposed economic improvement district to the clerk of a municipality or the county auditor when a petition for the establishment of an economic improvement district is received by the clerk or county auditor. Requires that the hearing date be included in the notice. Provides that the date of the hearing may not be more than sixty (60) days after the date on which the notice is mailed.

Affected Code Section: Ind. Code § 36-7-22-7 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1278 § 3
Explanation: Specifies that a legislative body may adopt an ordinance establishing an economic improvement district only if it determines that the petition has been signed by at least sixty percent (60%) of the owners of real property within the proposed district (as opposed to “a majority”); and the owners of real property constituting at least sixty percent (60%) (as opposed to more than fifty percent (50%)) of the assessed valuation in the proposed district. Provides that the signature of a person whose property is (A) owned by a nonprofit entity and is exempt from property taxation under Ind. Code § 6-1.1-10-16; (B) owned by this state or a state agency or leased to a state agency and is exempt from property taxation under Ind. Code Chapter 6-1.1-10 or any other law; or (C) owned by a political subdivision of this state and is exempt from property taxation under Ind. Code Chapter 6-1.1-10 or any other law may not be considered in determining whether the requirements of subsection (b) are met. Provides that the assessed valuation of any such property may not be considered in determining the total assessed valuation in the proposed district.
Application Note: Increases barriers to forming economic improvement districts in Indiana.

Affected Code Section: Ind. Code § 36-7-22-8 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1278 § 4
Explanation: Repeals the provision permitting an ordinance adopted to establish an economic improvement district to amend or modify the proposals contained in the petition for establishing the district.

Affected Code Section: Ind. Code § 36-7-22-9 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1278 § 5
Explanation: Provides that after June 30, 2018, a legislative body of a unit may not pass an amending ordinance to increase the boundaries of an economic improvement district.

Affected Code Section: Ind. Code § 36-7-22-12 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1278 § 6
Explanation: Provides that notices sent out regarding proposed assessments for each parcel of real property within an economic improvement district may not include a statement that the board, after hearing evidence, may increase the special assessment on any parcel. Provides that when a board renders a decision, it will be either to confirm or decrease special assessments and deletes reference to a board increasing a special assessment.

Affected Code Section: Ind. Code § 36-7-22-23 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1278 § 7
Explanation: Provides that upon acceptance or rejection of a proposed economic improvement district following a petition under this chapter, the resulting district (or the person that files the petition, if the proposed district is rejected) shall, at the request of the unit, reimburse the unit for all or part of the reasonable expenses incurred by the unit to comply with this chapter. Provides that the legislative body of the unit may choose not to collect all or part of the reasonable expenses incurred to comply with this chapter.

Affected Code Section: Non-Code Section
Effective Date: Upon Passage
Enacted By: Senate Bill 52 § 27
Explanation: Defines “industrial hemp” and “industrial hemp product.” Urges the legislative council to assign to an appropriate interim study committee the task of studying the regulation of industrial hemp, industrial hemp products, and low THC hemp extract manufacturing. Specifies that if the task is assigned to an interim study committee, the committee: (1) may not study legalizing medical marijuana; and (2) shall consider the following: (A) The methods, tools, and resources necessary to regulate industrial hemp and industrial hemp products. (B) The federal laws related to industrial hemp and industrial hemp products and what is permissible under federal law. (C) A comparison of other states that regulate industrial hemp and industrial hemp products, including a study of the effectiveness of the statutory regulation of those states. (D) The necessary costs, staff, and resources required to regulate industrial hemp, industrial hemp products, and the manufacture of low THC hemp extract. (E) Inspection of low THC hemp extract manufacturing facilities. (F) The criminal penalties necessary to regulate industrial hemp, industrial hemp products, and the manufacture of low THC hemp extract.

Affected Code Section: Non-Code Section
Effective Date: Upon Passage
Enacted By: Senate Bill 353 § 1
Explanation: Urges the legislative council to assign to an appropriate interim study committee the task of studying issues related to the establishment of a regional development tax credit, including a review of existing tax credits that could be repealed because they are similar to such a regional development tax credit or would duplicate some part of such a regional development tax credit. Urges the legislative council to assign to an appropriate interim study committee the task of studying issues related to including property assessed as residential in a property tax allocation area so that a redevelopment commission may encourage residential development in certain circumstances. Provides that the study must include an analysis of the parameters that must be met before a redevelopment commission may include property assessed as residential in a property tax allocation area.

Affected Code Section: Non-Code Section
Effective Date: Upon Passage
Enacted By: Senate Bill 353 § 2
Explanation: Urges the legislative council to assign to an appropriate interim study committee for study during the 2018 interim the following issues: (1) Whether the maximum amounts of the sales tax and income tax increments under the certified technology park statute should be increased. (2) Whether the IEDC should establish metrics for various aspects of certified technology park performance and, if so, what those metrics might be. (3) Whether, and in what manner, the IEDC, redevelopment commissions, and other interested entities in Indiana could better market the certified technology park program.

Affected Code Section: Non-Code Section
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 43
Explanation: Requires the office of the secretary of family and social services and the Indiana department of transportation to perform a coordinated study on leveraging money for transportation to workforce related programs. Provides that a report of the study shall be submitted to the budget committee before December 1, 2018.

Affected Code Section: Non-Code Section
Effective Date: July 1, 2018
Enacted By: House Bill 1002 § 44
Explanation: Urges the legislative council to assign to an appropriate interim study committee the question of whether under the federal Workforce Innovation and Opportunity Act (WIOA) the state should submit a combined WIOA state plan instead of a unified WIOA state plan to the United States Department of Labor.

Affected Code Section: Non-Code Section
Effective Date: Upon Passage
Enacted By: House Bill 1065 § 13
Explanation: Directs the Indiana utility regulatory commission to study certain topics regarding universal service reform and broadband services in Indiana and issue a report to the interim study committee on energy, utilities, and telecommunications before October 1, 2018.

 

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Tim C. Cook is the partner-in-charge of Katz, Sapper & Miller's State and Local Tax Group. Tim supervises and coordinates all state and local tax consulting services, including business incentives and site selection services, multistate taxes, unclaimed property and controversy services.
 

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Katie Culp is a partner in Katz, Sapper & Miller’s State and Local Tax GroupKatie works with corporate clients to make fully informed location decisions and maximize state and local incentives packages. Sensitive to the urgent nature of real estate transactions, she is adept at coordinating site selection and incentives timeframes with real estate and operational deadlines.