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House Bill 1544


House Bill 1544

ARCHIVE (2013)

Latest Information

 

DIGEST OF HB 1544 (Updated April 27, 2013 12:00 am - DI 73)


Motorsports. Establishes the Indiana motorsports commission (commission). Authorizes the commission to adopt a resolution establishing a motorsports investment district (district). Specifies that the budget committee shall review and make a recommendation to the budget agency regarding the resolution. Requires budget agency approval for the establishment of the district. Specifies that a resolution establishing a district must provide for the allocation to the motorsports investment district fund (district fund) of amounts appropriated to the commission. Specifies that the Indiana finance authority (authority) may issue bonds to pay the cost of improving, constructing, reconstructing, renovating, acquiring, or equipping improvements within a qualified motorsports facility. Provides that the bonds must mature within 20 years. Provides that the authority may not issue such bonds unless the owner or owners of the qualified motorsports facility, the authority, and the commission have entered into a written agreement concerning the terms of the financing of the improvements, including the obligation of the owner or owners of the qualified motorsports facility to make payments in an amount equal to at least $2,000,000 in each state fiscal year to the commission for deposit in the motorsports investment fund during the term of the agreement, and the ultimate parent company of the qualified motorsports facility makes certain guarantees. Authorizes the commission to lease all or any part of the structures and capital improvements from the authority and to pledge amounts appropriated to the commission for payments under the lease. Provides that the amount of any rent under such a lease may include the amount necessary to pay the bonds issued by the authority. Specifies that if the commission enters into such a lease with the authority, it may sublease the structures and capital improvements to the owner or owners of the qualified motorsports facility. Provides that if the commission purchases the leased property or it is otherwise conveyed to the commission, the commission may convey the property to the owner or owners of the qualified motorsports facility if: (1) the aggregate amount of credits provided to the owner or owners of the qualified motorsports facility equals or exceeds the aggregate amount of the funds appropriated to the commission and used by the commission to pay rent to the authority under the lease and any expenses incurred by the authority or the commission; and (2) all bonds issued by the authority are no longer outstanding. Requires the commission to secure the obligations of the owner or owners of the qualified motorsports facility to the commission under a lease or sublease with liens or security interests. Specifies that if a controlling ownership interest in a qualified motorsports facility is sold after the authority issues bonds, the commission shall determine whether the purchaser shall be allowed to assume the motorsports facility's obligations. Specifies that if the commission determines that there is good cause not to allow such an assumption by the purchaser, the owner or owners of the qualified motorsports facility shall pay to the commission an amount sufficient to pay the cost of defeasing all outstanding bonds issued by the authority for purposes of the qualified motorsports facility and paying all expenses of the commission and the authority incurred in connection with such defeasance. Provides that when the aggregate amount of credits provided to the owner or owners of the qualified motorsports facility equals or exceeds the aggregate amount of the funds appropriated to the commission and used to pay rent by the commission to the authority under the lease entered into between the authority and the commission, and if all bonds issued by the authority are no longer outstanding, the commission shall take the legal steps required to terminate each of its security interests in and mortgage liens on the improvements. Provides that the credits provided to the owner or owners of the qualified motorsports facility are equal to the incremental state sales and income taxes from the motorsports improvement district and the amount of the admissions fees on admission to the qualified motorsports facility. Provides that the goals for participation for the improvements financed under these provisions are 15% for minority business enterprises, 8% for women's business enterprises, and 3% for veteran or disabled business enterprises, consistent with the goals of delivering projects on time and within budget. Requires the office of management and budget (OMB) to conduct a review in 2023 of certain aspects of the motorsports investment district and to report to the budget committee and the legislative council. Provides that the amount of a race team member's race related income that is Indiana income is based on the fraction of the individual's Indiana duty days for the taxable year divided by the individual's total duty days for the taxable year. Specifies the manner in which certain receipts derived from motorsports racing are apportioned to Indiana. Provides for the reporting of prize money, purses, or other amounts that are distributed at a professional motorsports racing event at a qualified motorsports facility. Establishes the motorsports improvement program and fund, to be administered by the Indiana economic development corporation (IEDC). Provides that a person owning a motorsports enterprise may apply to the IEDC for a low-interest loan from the fund to be used for improving the motorsports enterprise. Provides that the program expires June 30, 2017. Provides that an admissions fee is imposed on each person charged for admission to a qualified motorsports facility on a race day. Provides that the admissions fees shall be deposited in the state general fund. Specifies the conditions under which the admissions fee expires.
Current Status:
 Law Enacted
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