Bill Text: IN SB0091 | 2013 | Regular Session | Engrossed
Bill Title: Motorsports investment district.
Spectrum: Moderate Partisan Bill (Republican 11-3)
Status: (Enrolled - Dead) 2013-04-22 - Senator Kruse added as coauthor [SB0091 Detail]
Download: Indiana-2013-SB0091-Engrossed.html
Citations Affected: IC 4-4; IC 4-10; IC 4-35; IC 5-1; IC 5-28; IC 6-8;
noncode.
Effective: Upon passage; July 1, 2013; January 1, 2014.
Miller Patricia, Merritt, Crider, Taylor, Schneider, Hume, Skinner, Steele
(HOUSE SPONSORS _ BROWN T, DAVIS, TURNER, FRIZZELL, BEHNING, MACER, KERSEY)
January 7, 2013, read first time and referred to Committee on Rules and Legislative
Procedure.
February 11, 2013, amended; reassigned to Committee on Appropriations.
February 14, 2013, amended, reported favorably _ Do Pass.
February 18, 2013, read second time, amended, ordered engrossed.
February 19, 2013, engrossed. Read third time, passed. Yeas 37, nays 12.
March 12, 2013, read first time and referred to Committee on Ways and Means.
April 9, 2013, amended, reported _ Do Pass.
April 11, 2013, read second time, amended, ordered engrossed.
Digest Continued
that the agreement must require between 9% and 11% of the licensee's adjusted gross receipts. Establishes the Indiana motorsports commission. Allows the commission to adopt a resolution establishing a motorsports investment district. Specifies that the budget committee shall review and make a recommendation to the budget agency regarding the resolution. Specifies that the maximum amount of revenue allocated to the district in a state fiscal year may not exceed $5,000,000. Provides that the Indiana finance authority may issue bonds for the purpose of obtaining money to pay the cost of improving, constructing, reconstructing, renovating, acquiring, or equipping improvements within a qualified motorsports facility. Provides that the amounts allocated to the district are loans that will be repaid from the growth in sales tax and individual adjusted gross income tax revenue realized within the district and from an admissions fee imposed on race day admissions to a qualified motorsports facility. Requires goals for participation in the procurement and contracting process involved with a motorsports investment district by minority business enterprises of 15%, women's business enterprises of 8%, and veteran or disabled business enterprises of 3%, consistent with the goals of delivering projects on time and within budget.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning
economic development.
(1) That there currently exists in certain areas of the state critical conditions of unemployment, inadequate drinking water, inadequate wastewater and storm water management, or environmental pollution, including water pollution, air pollution, sewage and solid waste, radioactive waste, thermal pollution,
radiation contamination, and noise pollution, and that these
conditions may well exist, from time to time, in other areas of the
state.
(2) That in some areas of the state such conditions are chronic and
of long standing and that without remedial measures they may
become so in other areas of the state.
(3) That economic insecurity due to unemployment, inadequate
drinking water, inadequate wastewater and storm water
management, or environmental pollution is a menace to the
health, safety, morals, and general welfare of not only the people
of the affected areas but of the people of the entire state.
(4) That involuntary unemployment and its resulting burden of
indigency falls with crushing force upon the unemployed worker
and ultimately upon the state in the form of public assistance and
unemployment compensation.
(5) That security against unemployment and the resulting spread
of indigency and economic stagnation in the areas affected can
best be provided by:
(A) the promotion, attraction, stimulation, rehabilitation, and
revitalization of industrial development projects, rural
development projects, mining operations, and agricultural
operations that involve the processing of agricultural products;
(B) the promotion and stimulation of international exports; and
(C) the education, both formal and informal, of people of all
ages throughout the state by the promotion, attraction,
construction, renovation, rehabilitation, and revitalization of
and assistance to educational facility projects.
(6) That the present and prospective health, safety, morals, right
to gainful employment, and general welfare of the people of the
state require as a public purpose the provision of safe drinking
water, the provision of wastewater and storm water management,
the abatement or control of pollution, the promotion of increased
educational enrichment (including cultural, intellectual, scientific,
or artistic opportunities) for people of all ages through new,
expanded, or revitalized educational facility projects or through
assisting educational facility projects, and the promotion of
employment creation or retention through development of new
and expanded industrial development projects, rural development
projects, mining operations, and agricultural operations that
involve the processing of agricultural products.
(7) That there is a need to stimulate a larger flow of private
investment funds from commercial banks, investment bankers,
insurance companies, other financial institutions, and individuals
into such industrial development projects, rural development
projects, mining operations, international exports, and agricultural
operations that involve the processing of agricultural products in
the state.
(8) That the authority can encourage the making of loans or leases
for creation or expansion of industrial development projects, rural
development projects, mining operations, international exports,
and agricultural operations that involve the processing of
agricultural products, thus putting a larger portion of the private
capital available in Indiana for investment to use in the general
economic development of the state.
(9) That the issuance of bonds of the authority to create a
financing pool for industrial development projects and carrying
out the purposes of IC 13-18-13 and IC 13-18-21 promoting a
substantial likelihood of opportunities for:
(A) gainful employment;
(B) business opportunities;
(C) educational enrichment (including cultural, intellectual,
scientific, or artistic opportunities);
(D) the abatement, reduction, or prevention of pollution;
(E) the provision of safe drinking water;
(F) the provision of wastewater and storm water management;
(G) the removal or treatment of any substances in materials
being processed that otherwise would cause pollution when
used; or
(H) increased options for and availability of child care;
will improve the health, safety, morals, and general welfare of the
people of the state and constitutes a public purpose for which the
authority shall exist and operate.
(10) That the issuance of bonds of the authority to create a
funding source for the making of guaranteed participating loans
will promote and encourage an expanding international exports
market and international exports sales and will promote the
general welfare of all of the people of Indiana by assisting Indiana
businesses through stimulation of the expansion of international
exports sales for Indiana products and services, especially those
of small and medium-sized businesses, by providing financial
assistance through the authority.
(b) The Indiana finance authority shall exist and operate for the
public purposes of:
(1) promoting opportunities for gainful employment and business
opportunities by the promotion and development of industrial
development projects, rural development projects, mining
operations, international exports, and agricultural operations that
involve the processing of agricultural products, in any areas of the
state;
(2) promoting the educational enrichment (including cultural,
intellectual, scientific, or artistic opportunities) of all the people
of the state by the promotion, development, and assistance of
educational facility projects;
(3) promoting affordable farm credit and agricultural loan
financing at interest rates that are consistent with the needs of
borrowers for farming and agricultural enterprises;
(4) preventing and remediating environmental pollution,
including water pollution, air pollution, sewage and solid waste
disposal, radioactive waste, thermal pollution, radiation
contamination, and noise pollution affecting the health and
well-being of the people of the state by:
(A) the promotion and development of industrial development
projects; and
(B) carrying out the purposes of IC 13-18-13 and IC 13-18-21;
(5) promoting the provision of safe and adequate drinking water
and wastewater and storm water management to positively affect
the public health and well-being by carrying out the purposes of
IC 13-18-13 and IC 13-18-21;
(6) otherwise positively affecting the public health and well-being
by carrying out the purposes of IC 13-18-13 and IC 13-18-21; and
(7) promoting affordable and accessible child care for the people
of the state by the promotion and development of child care
facilities; and
(8) carrying out the purposes of IC 5-1-17.5 concerning a
motorsports investment district.
(1) issue bonds under terms and conditions determined by the authority and use the proceeds of the bonds to acquire obligations issued by any entity authorized to acquire, finance, construct, or lease capital improvements under IC 5-1-17;
(2) issue bonds under terms and conditions determined by the authority and use the proceeds of the bonds to acquire any obligations issued by the northwest Indiana regional development
authority established by IC 36-7.5-2-1; and
(3) after December 31, 2009, issue bonds under terms and
conditions determined by the authority and use the proceeds of
the bonds to acquire any obligations issued by either the
commuter rail service board established under IC.8-24-5 or the
regional demand and scheduled bus service board established
under IC.8-24-6;
(4) issue bonds under terms and conditions determined by the
authority and use the proceeds of the bonds to carry out the
purposes of IC 5-1-17.5 within a motorsports investment
district; and
(5) perform any other functions determined by the authority
to be necessary or appropriate to carry out the purposes of
IC 5-1-17.5 within a motorsports investment district.
Chapter 23. Motorsports Investment District Loans
Sec. 1. This chapter applies to a motorsports investment district established under IC 5-1-17.5.
Sec. 2. As used in this chapter, "commission" refers to the Indiana motorsports commission created under IC 5-1-17.5.
Sec. 3. As used in this chapter, "district" refers to a motorsports investment district established under IC 5-1-17.5.
Sec. 4. As used in this chapter, "gross retail base period amount" means the aggregate amount of state gross retail and use taxes remitted under IC 6-2.5 by a qualified motorsports facility operating in a district during the full state fiscal year that precedes the date on which the commission adopted a resolution designating the district.
Sec. 5. As used in this chapter, "gross retail incremental amount" means the remainder of:
(1) the aggregate amount of state gross retail and use taxes that are remitted under IC 6-2.5 by a qualified motorsports facility operating in a district during a state fiscal year; minus
(2) the gross retail base period amount.
Sec. 6. As used in this chapter, "income tax base period amount" means the aggregate amount of state adjusted gross income taxes paid by individuals with respect to:
(1) wages and salary earned for work in the district; or
(2) purse money and prizes won for racing in the district;
for the state fiscal year that precedes the date on which the
commission adopts a resolution designating the district.
Sec. 7. As used in this chapter, "income tax incremental
amount" means the remainder of:
(1) the aggregate amount of state adjusted gross income taxes
paid with respect to:
(A) wages and salary earned for work in the district; or
(B) purse money and prizes won for racing in the district;
for a particular state fiscal year; minus
(2) the income tax base period amount.
Sec. 8. As used in this chapter, "loan" refers to a loan made
under IC 5-1-17.5-32.
Sec. 9. As used in this chapter, "qualified motorsports facility"
has the meaning set forth in IC 5-1-17.5-13.
Sec. 10. (a) Before the first business day in October of each year,
the department shall calculate the income tax incremental amount
and the gross retail incremental amount for the preceding state
fiscal year for the district.
(b) Businesses operating in the district shall report, in the
manner and in the form prescribed by the department, information
that the department determines necessary to calculate incremental
gross retail, use, and income taxes.
Sec. 11. Before the first business day in November of each year,
the budget agency shall do the following:
(1) Determine the sum of the following amounts for the
preceding state fiscal year for the district:
(A) The income tax incremental amount.
(B) The gross retail incremental amount.
(C) The amount of admissions fees deposited in the state
general fund under IC 6-8-14-10.
(2) Credit the sum determined under subdivision (1) as the
amount of the loan repaid by the qualified motorsports
facility for the preceding state fiscal year.
(b) Each horsemen's association shall appoint a representative to a negotiation committee to negotiate the distribution agreement
required by subsection (a). If there are an even number of
horsemen's associations appointing representatives to the
committee, the members appointed by each horsemen's association
shall jointly appoint an at-large member of the negotiation
committee to represent the interests of all of the horsemen's
associations. The at-large member is entitled to the same rights and
privileges of the members appointed by the horsemen's
associations.
(c) Each licensee shall appoint a representative to a negotiation
committee to negotiate the distribution agreement required by
subsection (a). If there are an even number of licensees, the
members appointed by each licensee shall jointly appoint an
at-large member of the negotiation committee to represent the
interests of all of the licensees. The at-large member is entitled to
the same rights and privileges of the members appointed by the
licensees.
(d) If a majority of the members of each negotiation committee
are present, the negotiation committees may negotiate and enter
into a distribution agreement binding all horsemen's associations
and all licensees as required by subsection (a).
(e) The initial distribution agreement entered into by the
negotiation committees:
(1) must be in writing;
(2) must be submitted to the Indiana horse racing commission
before October 1, 2013;
(3) must be approved by the Indiana horse racing commission
before January 1, 2014; and
(4) may contain any terms determined to be necessary and
appropriate by the negotiation committees, subject to
subsection (f) and section 12 of this chapter.
(f) A distribution agreement must provide that at least nine
percent (9%) and not more than eleven percent (11%) of a
licensee's adjusted gross receipts must be distributed under section
12(b)(2) of this chapter. A distribution agreement applies to
adjusted gross receipts received by the licensee after December 31
of the calendar year in which the distribution agreement is
approved by the Indiana horse racing commission.
(g) A distribution agreement may expire on December 31 of a
particular calendar year if a subsequent distribution agreement
will take effect on January 1 of the following calendar year. A
subsequent distribution agreement:
(1) is subject to the approval of the Indiana horse racing
commission; and
(2) must be submitted to the Indiana horse racing commission
before October 1 of the calendar year preceding the calendar
year in which the distribution agreement will take effect.
(1) a distribution agreement is not submitted to the Indiana horse racing commission before the deadlines imposed by section 16 of this chapter; or
(2) the Indiana horse racing commission is unable to approve a distribution agreement;
the Indiana horse racing commission shall determine the percentage of a licensee's adjusted gross receipts that must be distributed under section 12(b)(2) of this chapter.
(b) The Indiana horse racing commission shall give the negotiation committees an opportunity to correct any deficiencies in a proposed distribution agreement before making a determination of the applicable percentage under subsection (a).
(c) The Indiana horse racing commission shall consider the factors used to evaluate a distribution agreement under section 18 of this chapter when making a determination under subsection (a).
(1) The best interests of pari-mutuel horse racing in Indiana.
(2) Maintenance of the highest standards and greatest level of integrity.
(3) Fairness to all parties.
(4) The financial stability of licensees.
(5) Any other factor considered relevant by the Indiana horse racing commission.
(b) The Indiana economic development corporation is not entitled to a distribution under section 15(b)(4) of this chapter in a calendar year beginning after December 31, 2033.
(c) A licensee may deduct the amounts described in this section from the amount of revenue sharing required under section 15 of this chapter in calendar year 2034 and each calendar year thereafter.
(d) A licensee may retain any amount deducted from the revenue sharing requirement under subsection (c).
Chapter 17.5. Motorsports Investment District
Sec. 1. The general assembly finds the following:
(1) Marion County and certain surrounding counties and municipalities located in those counties face unique and distinct challenges and opportunities related to the economic development issues associated with the maintenance of a world-class motorsports facility in the town of Speedway.
(2) A unique approach is required to ensure that such a motorsports facility can be maintained to allow these counties and municipalities to meet these challenges and opportunities.
(3) The powers and responsibilities provided to the Indiana motorsports commission created by this chapter and the Indiana finance authority are appropriate and necessary to carry out the public purposes of encouraging and fostering economic development in central Indiana and maintaining a world-class motorsports facility in the town of Speedway.
(4) Encouragement of economic development in central Indiana will:
(A) generate significant economic activity, a substantial part of which results from persons residing outside Indiana, which may attract new businesses and encourage existing businesses to remain or expand in central Indiana;
(B) promote central Indiana to residents outside Indiana, which may attract residents outside Indiana and new businesses to relocate to central Indiana;
(C) protect and increase state and local tax revenues; and
(D) encourage overall economic growth in central Indiana and in Indiana.
(5) Marion County faces unique challenges in the development of infrastructure and other facilities necessary to promote economic development as a result of its need to rely on sources of revenue other than property taxes, due to the large number of tax-exempt properties located in Marion County,
because Indianapolis is the seat of state government and
Marion County government, and because Marion County is
home to multiple institutions of higher education and the site
of numerous state and regional nonprofit corporations.
(6) Economic development benefits the health and welfare of
the people of Indiana, is a public use and purpose for which
public money may be spent, and is of public utility and
benefit.
Sec. 2. As used in this chapter, "affected statutes" has the
meaning set forth in IC 4-4-10.9-1.2.
Sec. 3. As used in this chapter, "authority" refers to the Indiana
finance authority.
Sec. 4. As used in this chapter, "board" refers to the board of
directors of the commission.
Sec. 5. As used in this chapter, "bonds" has the meaning set
forth in IC 4-4-10.9-2.
Sec. 6. As used in this chapter, "budget agency" means the
budget agency established by IC 4-12-1-3.
Sec. 7. As used in this chapter, "budget committee" means the
budget committee established by IC 4-12-1-3.
Sec. 8. As used in this chapter, "commission" refers to the
Indiana motorsports commission created by this chapter.
Sec. 9. As used in this chapter, "department" refers to the
department of state revenue.
Sec. 10. As used in this chapter, "motorsports investment
district" means the special taxing district containing the
geographic area established as a motorsports investment district
under this chapter.
Sec. 11. As used in this chapter, "person" has the meaning set
forth in IC 36-1-2-12.
Sec. 12. As used in this chapter, "political subdivision" has the
meaning set forth in IC 36-1-2-13.
Sec. 13. (a) As used in this chapter, "qualified motorsports
facility" means a facility that:
(1) is located within the town of Speedway;
(2) is used for professional motorsports racing events;
(3) has a motorsports racetrack that is greater than two (2)
miles in length; and
(4) holds at least two (2) professional motorsports racing
events annually at which the combined admissions total at
least two hundred thousand (200,000).
(b) For purposes of this section, a professional motorsports
racing event includes a professional motorsports racing practice
session that is open to the general public.
Sec. 14. As used in this chapter, "qualified revenue" refers to
revenue deposited in the motorsports investment district fund
under IC 4-35-7-15(b)(2).
Sec. 15. The Indiana motorsports commission is created in
Indiana as a separate body corporate and politic, as an
instrumentality of the state, to finance real and personal property
improvements made by a qualified motorsports facility within a
motorsports investment district.
Sec. 16. (a) The board of directors of the commission is
composed of the following five (5) directors, who serve at the
pleasure of the governor and must be residents of Indiana:
(1) The budget director, or the budget director's designee,
who shall serve as chair of the commission.
(2) Four (4) directors appointed by the governor. The
president pro tempore of the senate and the speaker of the
house of representatives may each make one (1)
recommendation to the governor concerning the appointment
of a director under this subdivision.
(b) The commission shall be governed by the board. The
directors may not be elected public officials of the state or any
political subdivision. Except for the budget director, the directors
first appointed continue in office for terms expiring on July 1,
2014, July 1, 2015, July 1, 2016, and July 1, 2017, and until their
respective successors are duly appointed and qualified.
(c) Except for the budget director, the term of any director first
appointed must be designated by the governor. If a vacancy occurs
on the board, the governor shall fill the vacancy by appointing a
new director. The successor of each such director is appointed for
a term of four (4) years, except that any person appointed to fill a
vacancy is appointed to serve only for the unexpired term and until
a successor is duly appointed and qualified. A director is eligible
for reappointment.
(d) The directors shall hold an initial organizational meeting
within thirty (30) days after the board's appointment and after
public notice given by the budget director in accordance with
IC 5-3-1-4. As soon as practicable after January 15 of each year,
the board shall hold its annual organizational meeting. The board
shall elect one (1) of the directors as vice-chair and another
director as secretary-treasurer to perform the duties of those
offices. These officers serve from the date of their election and until
their successors are elected and qualified. Special meetings may be
called by the chair or any two (2) directors of the board.
(e) Three (3) directors constitute a quorum of the commission,
and the affirmative vote of at least three (3) directors is necessary
for any official action taken by the board. A vacancy in the
membership of the board does not impair the rights of a quorum
to exercise all the rights and perform all the duties of the board.
(f) Except for the budget director, the directors are entitled to
reimbursement for traveling expenses and other expenses actually
incurred in connection with their duties as provided by law.
Directors are not entitled to the salary per diem provided by
IC 4-10-11-2.1(b) or any other compensation while performing
their duties.
(g) The board:
(1) is responsible for implementing the powers and duties of
the commission under this chapter;
(2) may adopt bylaws for the regulation of the affairs of the
board, the conduct of the business of the commission, and the
safeguarding of the funds and property entrusted to the
commission; and
(3) shall, without complying with IC 4-22-2, adopt the code of
ethics specified in executive order 05-12 for its members and
employees.
Sec. 17. The commission is authorized and empowered to do the
following:
(1) To sue and be sued, and to plead and be impleaded in the
name of the commission.
(2) To receive and accept from any federal agency grants and
to receive and accept aid or contributions from any source of
money, property, labor, or other things of value, to be held,
used, and applied only for the purposes for which such grants
and contributions may be made.
(3) To hold, use, administer, and expend such sum or sums as
may at any time be appropriated or transferred to the
commission.
(4) To do all acts and things necessary or proper to carry out
the powers expressly granted in this chapter.
Sec. 18. The authority shall provide staff support for the
commission and pay all expenses of the commission from funds
appropriated to the authority.
Sec. 19. (a) Except as provided in subsection (b), each director
of the board shall execute a surety bond in the penal sum of fifty
thousand dollars ($50,000). To the extent an individual described
in this section is already covered by a bond required by state law,
the individual is not required to obtain another bond, so long as the
bond required by state law is in at least the penal sum specified in
this section and covers the individual's activities for the
commission.
(b) Instead of a bond, the chair may execute a blanket surety
bond covering each director.
(c) Each surety bond must be conditioned upon the faithful
performance of the individual's duties and shall be issued by a
surety company authorized to transact business in this state as
surety. At all times after the issuance of any surety bonds, each
individual described in this section shall maintain the surety bonds
in full force and effect. All costs of the surety bonds shall be borne
by the commission.
Sec. 20. The directors of the board are not subject to personal
liability or accountability by reason of any act authorized by this
chapter with respect to the:
(1) issuance of bonds;
(2) execution of a lease for office space for the commission; or
(3) execution of any other agreement under this chapter.
Sec. 21. The commission shall cause an audit or review of its
books and accounts to be made at least once each year by certified
public accountants.
Sec. 22. The commission shall, following the close of each fiscal
year of the commission, submit an annual report of its activities for
the preceding year to the governor, the budget committee, and the
legislative council. An annual report submitted under this section
to the legislative council must be in an electronic format under
IC 5-14-6. Each report must set forth a complete operating and
financial statement for the commission during the fiscal year it
covers.
Sec. 23. (a) A director of the commission who knowingly has an
interest:
(1) in any contract with the commission; or
(2) in the sale or lease of any real or personal property to the
commission;
commits a Class A misdemeanor. All such contracts or leases are
void.
(b) This section does not apply to contracts for purchases of
property, real or personal, between the commission and:
(1) the authority;
(2) any political subdivision; or
(3) any department or agency of the state.
Sec. 24. (a) The commission may, after a public hearing, adopt a resolution establishing a motorsports investment district. Notice of the public hearing must be provided in accordance with IC 5-3-1.
(b) In establishing the motorsports investment district, the commission must make the following findings:
(1) There are improvements that will be undertaken in the motorsports investment district that will have a positive effect on the activities of a qualified motorsports facility.
(2) The improvements that will be undertaken in the motorsports investment district will benefit the public health and welfare and will be of public utility and benefit.
(3) The improvements that will be undertaken in the motorsports investment district will protect or increase state and local tax bases and tax revenues.
(c) A motorsports investment district consists of:
(1) the geographic area that is included within the qualified motorsports facility; and
(2) adjacent property that is:
(A) related to the operation of the qualified motorsports facility; and
(B) owned by the owner of the qualified motorsports facility;
as determined in the resolution adopted by the commission.
Sec. 25. A resolution establishing a motorsports investment district must state an expiration date for the motorsports investment district, which must be not later than twenty (20) years after the date of the adoption of the resolution. The commission shall specify in the resolution the geographic area that is included within the motorsports investment district.
Sec. 26. The department may adopt rules under IC 4-22-2 and guidelines to govern the transfer of qualified revenue to the motorsports investment district.
Sec. 27. Upon adoption by the commission of a resolution establishing a motorsports investment district under this chapter, the commission shall submit the resolution to the budget agency.
Sec. 28. (a) The budget agency, after review by the budget committee, shall approve the resolution establishing the motorsports investment district if the budget agency finds that the improvements to be made within the qualified motorsports facility
are economically sound and will benefit the people of Indiana by
protecting or increasing state and local tax bases and tax revenues
for at least the duration of the motorsports investment district.
(b) The maximum amount of qualified revenue that may be
deposited in the motorsports investment district fund in a state
fiscal year is five million dollars ($5,000,000).
(c) Qualified revenue may be deposited in the motorsports
investment district fund for twenty (20) years.
Sec. 29. (a) If the commission adopts a resolution establishing a
motorsports investment district, the commission shall notify the
department in an electronic format approved by the department of
the adoption of the resolution and shall include with the
notification a complete list of the following:
(1) Employers in the motorsports investment district.
(2) Street names and the range of street numbers of each
street in the motorsports investment district.
(b) The commission shall update the list prepared under
subsection (a) before July 1 of each year.
Sec. 30. (a) If a motorsports investment district is established
under this chapter, a state fund known as the motorsports
investment district fund is established for the motorsports
investment district. The fund shall be administered by the
department. Money in the fund does not revert to the state general
fund at the end of a state fiscal year.
(b) The department shall deposit qualified revenue in the
motorsports investment district fund as provided in this chapter.
The commission may use money in the fund for the purposes of this
chapter.
(c) All distributions from the motorsports investment district
fund shall be made by warrants issued by the auditor of state to the
treasurer of state ordering those distributions to the commission.
(d) Distributions from the motorsports investment district fund
to the commission may be used for repaying bonds issued to
finance real and personal property improvements at a qualified
motorsports facility as described in section 31 of this chapter.
Sec. 31. The authority may do any of the following:
(1) Finance the improvement, construction, reconstruction,
renovation, and acquisition of real and personal property
improvements within a qualified motorsports facility.
(2) Exercise the authority's powers under IC 4-4-11 within a
qualified motorsports facility.
Sec. 32. The commission may annually loan money received
under section 30 of this chapter to a qualified motorsports facility
to repay in whole or in part bonds issued by the authority to
finance the real and personal property improvements authorized
by section 31 of this chapter. Improvements financed under this
chapter must be approved by the commission. A qualified
motorsports facility shall repay the loan in the manner prescribed
by IC 4-10-23-11.
Sec. 33. The commission shall perfect a security interest under
IC 26-1-9.1 with respect to each personal property improvement
financed under this chapter. Notwithstanding IC 26-1-9.1-334, a
security interest perfected under this section is superior to any
other lien on the property of the qualified motorsports facility
other than a lien for taxes. The amount of the security interest
must be satisfied if:
(1) controlling interest in a qualified motorsports facility is
sold after bonds are issued under this chapter; or
(2) the bonds are defeased.
Sec. 34. (a) Subject to subsection (f), the authority may issue
bonds for the purpose of obtaining money to pay the cost of
improving, constructing, reconstructing, renovating, acquiring, or
equipping improvements within a qualified motorsports facility.
(b) The terms and form of the bonds must be set out either in
the resolution or in a form of trust indenture approved by the
resolution.
(c) The bonds must mature within twenty (20) years.
(d) The commission shall sell the bonds at public or private sale
upon the terms determined by the commission.
(e) All money received from any bonds issued under this chapter
shall be applied to the payment of the cost of improving,
constructing, reconstructing, renovating, acquiring, or equipping
improvements within a qualified motorsports facility, or payment
of the cost of refunding or refinancing outstanding bonds for which
the bonds are issued. The cost may include:
(1) planning and development of the improvement and all
buildings, facilities, structures, and improvements related to
it;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that
are necessary or desirable to make the capital improvement
suitable for use and operations;
(4) architectural, engineering, consultant, and attorney's fees;
(5) incidental expenses in connection with the issuance and sale of bonds;
(6) reserves for principal and interest;
(7) interest during construction;
(8) financial advisory fees;
(9) insurance during construction;
(10) bond insurance, debt service reserve insurance, letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the principal of, redemption premiums (if any) for, and interest on the bonds being refunded or refinanced.
(f) The authority may not issue bonds under this chapter unless the qualified motorsports facility, the authority, and the commission have entered into a written agreement concerning the terms of the financing of the improvements financed under this chapter.
Sec. 35. (a) This chapter contains full and complete authority for the issuance of bonds improvements within a motorsports investment district. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the commission or any other officer, department, agency, or instrumentality of the state or of any political subdivision is required to issue any bonds under this chapter, except as prescribed in this chapter.
(b) Bonds issued under this chapter are legal investments for private trust funds and the funds of banks, trust companies, insurance companies, building and loan associations, credit unions, banks of discount and deposit, savings banks, loan and trust and safe deposit companies, rural loan and savings associations, guaranty loan and savings associations, mortgage guaranty companies, small loan companies, industrial loan and investment companies, and other financial institutions organized under Indiana law.
Sec. 36. (a) The authority may secure bonds issued under this chapter by a trust indenture between the authority and a corporate trustee, which may be any trust company or national or state bank within Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign qualified revenue, but may not mortgage land or capital improvements;
(2) contain reasonable and proper provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants setting forth the duties of the authority;
(3) set forth the rights and remedies of bondholders and trustee; and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the authority under this section is valid and binding from the time that the pledge or assignment is made, against all persons whether or not they have notice of the lien. Any trust indenture by which a pledge is created or an assignment made need not be filed or recorded. The lien is perfected against third parties by filing the trust indenture in the records of the authority.
Sec. 37. Any action to contest the validity of bonds to be issued under this chapter may not be brought after the fifteenth day following:
(1) the receipt of bids for the bonds, if the bonds are sold at public sale; or
(2) the publication one (1) time in a newspaper of general circulation published in the county of notice of the execution and delivery of the contract for the sale of bonds;
whichever occurs first.
Sec. 38. The commission is subject to the provisions of 25 IAC 5 concerning equal opportunities for minority business enterprises and women's business enterprises to participate in procurement and contracting processes. In addition, the commission shall set goals for participation by minority business enterprises of fifteen percent (15%), women's business enterprises of eight percent (8%), and veteran or disabled business enterprises of three percent (3%), consistent with the goals of delivering the project on time and within the budgeted amount and, insofar as possible, using Indiana businesses for employees, goods, and services. In fulfilling the goals, the commission shall take into account historical precedents in the same market.
Chapter 36. Motorsports Improvement Program and Fund
Sec. 1. (a) As used in this chapter, "motorsports enterprise" means:
(1) any race track, drag strip, or road course that is opened to the public for conducting the lawful racing of cars, trucks, motorcycles, or all terrain vehicles;
(2) a person engaged in the business of repairing, fabricating, manufacturing, or distributing vehicles, parts, equipment, or
other items used in motorsports; or
(3) a person engaged in motorsports racing as an owner or
driver.
(b) However, the term does not include:
(1) a facility located in a motorsports investment district
established under IC 5-1-17.5;
(2) a facility constructed to host the home games of a
professional football or basketball team;
(3) a facility other than a facility described in subdivision (2)
that is temporarily adapted for conducting a racing event;
(4) the state fairgrounds; or
(5) a county fairgrounds.
Sec. 2. As used in this chapter, "person" means any individual
or entity.
Sec. 3. (a) The motorsports improvement fund is established
within the state treasury. The fund is a revolving fund to provide
loans for enhancing the development of the motorsports industry
in Indiana.
(b) The fund consists of:
(1) appropriations from the general assembly;
(2) amounts received under IC 4-35-7-15(b)(3); and
(3) loan repayments.
(c) The corporation shall administer the fund. The following
may be paid from money in the fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry
out the purposes of this chapter.
(d) Earnings from loans made under this chapter shall be
deposited in the fund.
(e) The money in the fund at the end of a state fiscal year does
not revert to the state general fund but remains in the fund.
Sec. 4. (a) The treasurer of state shall invest the money in the
fund not currently needed to meet the obligations of the fund in the
same manner as other public funds may be invested. Interest that
accrues from these investments shall be deposited in the fund.
(b) The treasurer of state shall also:
(1) receive cash receipts belonging to the fund, deposit these
amounts in the fund, and submit a monthly report to the
corporation of these transactions; and
(2) make payments on vouchers authorized by the
corporation.
Sec. 5. (a) A person owning a motorsports enterprise may apply
to the corporation for a loan from the fund to be used for
improving the motorsports enterprise owned by the person.
(b) An amount loaned to a person is an obligation of the person
and shall be repaid to the corporation within a time to be fixed by
the corporation.
(c) The corporation shall determine interest rates for the loans
to be made under this section.
(d) If a person fails to make repayment of money loaned under
this section, the amount payable may be recovered in an action by
the state on relation of the corporation, prosecuted by the attorney
general, in the circuit or superior court of the county in which the
person's motorsports enterprise is located.
Chapter 14. Motorsports Investment District Admissions Fee
Sec. 1. This chapter applies to a motorsports investment district established under IC 5-1-17.5.
Sec. 2. As used in this chapter, "commission" refers to the Indiana motorsports commission created under IC 5-1-17.5.
Sec. 3. As used in this chapter, "district" refers to a motorsports investment district established under IC 5-1-17.5.
Sec. 4. As used in this chapter, "qualified motorsports facility" has the meaning set forth in IC 5-1-17.5-13.
Sec. 5. As used in this chapter, "race day" means a day on which a race is conducted in which a competitor may earn points towards a series championship.
Sec. 6. (a) An admissions fee is imposed on each person charged for admission to a qualified motorsports facility on a race day. The admissions fee equals:
(1) the price of each admission to a qualified motorsports facility; multiplied by
(2) the applicable percentage determined under subsection (b).
(b) The applicable percentage is as follows:
(1) Six percent (6%) on any admissions charge of at least one hundred fifty dollars ($150).
(2) Three percent (3%) on any admissions charge of at least one hundred dollars ($100) but less than one hundred fifty dollars ($150).
(3) Two percent (2%) on any admissions charge of less than one hundred dollars ($100).
(c) The fee imposed under subsection (a) does not apply to any amount charged for parking at a qualified motorsports facility.
Sec. 7. Each person who pays a price for admission to a qualified motorsports facility on a race day is liable for the fee imposed under this chapter.
Sec. 8. The person who collects the price for admission shall also collect the admissions fee imposed with respect to the price for admission. The person shall collect the fee at the same time the price for admission is paid, regardless of whether the price paid is for a single admission, for season tickets, or for any other admission arrangement. In addition, the person shall collect the fee as an agent of the state.
Sec. 9. A person who collects an admissions fee under section 8 of this chapter shall remit the fee collections to the department of state revenue. The person shall remit the fees collected during a particular month before the fifteenth day of the following month. At the time the fees are remitted, the person shall file a return on the form prescribed by the department of state revenue.
Sec. 10. The department of state revenue shall deposit the fees remitted under this chapter in the state general fund.
(b) The following apply to the adjusted gross receipts of slot machine wagering occurring before July 1, 2013:
(1) Subject to subdivision (2), a licensee shall make the transfers required by IC 4-35-7-12 (as in effect on January 1, 2013) with respect to the adjusted gross receipts of slot machine wagering occurring in June 2013.
(2) A licensee shall adjust the transfers required by subdivision (1) in accordance with IC 4-35-7-12(j) (as in effect on January 1, 2013).
(3) A licensee shall make the transfers required by subdivision (1) before July 15, 2013.
(c) This SECTION expires January 1, 2014.
