IN
Indiana Senate Bill SB0330

Indiana 2023 Regular Session

Indiana Senate Bill SB0330 Compare Versions

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1-*SB0330.1*
2-February 10, 2023
1+
2+Introduced Version
33 SENATE BILL No. 330
44 _____
5-DIGEST OF SB 330 (Updated February 9, 2023 11:34 am - DI 87)
6-Citations Affected: IC 5-16; IC 22-2.
5+DIGEST OF INTRODUCED BILL
6+Citations Affected: IC 5-16-13-12.5; IC 22-2-19.
77 Synopsis: Payroll information on public finance construction.
8-Requires a contractor in any contractor tier except for tier 1 (a general
9-or prime contractor) on a: (1) public works project; or (2) a tax
10-advantaged construction project; to complete a weekly report of wages
11-and hours of the contractor's employees who work on the project.
8+Requires a contractor in any contractor tier on a public works project
9+or on a tax advantaged construction project to complete a weekly report
10+of wages and hours of the contractor's employees who work on the
11+public works project or the tax advantaged construction project.
1212 Effective: July 1, 2023.
1313 Bohacek
1414 January 12, 2023, read first time and referred to Committee on Local Government.
15-February 9, 2023, amended, reported favorably — Do Pass.
16-SB 330—LS 6943/DI 75 February 10, 2023
15+2023 IN 330—LS 6943/DI 75 Introduced
1716 First Regular Session of the 123rd General Assembly (2023)
1817 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
1918 Constitution) is being amended, the text of the existing provision will appear in this style type,
2019 additions will appear in this style type, and deletions will appear in this style type.
2120 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
2221 provision adopted), the text of the new provision will appear in this style type. Also, the
2322 word NEW will appear in that style type in the introductory clause of each SECTION that adds
2423 a new provision to the Indiana Code or the Indiana Constitution.
2524 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
2625 between statutes enacted by the 2022 Regular Session of the General Assembly.
2726 SENATE BILL No. 330
2827 A BILL FOR AN ACT to amend the Indiana Code concerning state
2928 and local administration.
3029 Be it enacted by the General Assembly of the State of Indiana:
3130 1 SECTION 1. IC 5-16-13-12.5 IS ADDED TO THE INDIANA
3231 2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3332 3 [EFFECTIVE JULY 1, 2023]: Sec. 12.5. (a) This section applies to a
34-4 contractor in a contractor tier on a public works project, not
35-5 including a tier 1 contractor.
36-6 (b) This section applies only to a public works contract entered
37-7 into after June 30, 2023.
38-8 (c) As used in this section, "department" refers to the
39-9 department of labor created by IC 22-1-1-1.
40-10 (d) As used in this section, "Form WH-347" refers to the weekly
41-11 report of wages and hours of individuals employed on construction
42-12 projects prescribed by the Wage and Hour Division of the United
43-13 States Department of Labor.
44-14 (e) As used in this section, "report" refers to either of the
45-15 following:
46-16 (1) Form WH-347.
47-17 (2) A form prescribed by the department that is the equivalent
48-SB 330—LS 6943/DI 75 2
49-1 of Form WH-347.
50-2 (f) Each week, a contractor shall complete and maintain in its
51-3 files a report.
52-4 (g) At the request of any of the following, a contractor shall
53-5 produce the report for inspection and verification:
54-6 (1) The public agency that has contracted for the public works
55-7 project.
56-8 (2) The department.
57-9 (h) The department shall prescribe a form that is the equivalent
58-10 of Form WH-347. The form must require that an agent of the
59-11 contractor completing the form certify the information on the form
60-12 under the penalties for perjury. The department may provide that
61-13 payroll records normally maintained by a contractor satisfy the
62-14 requirement of this section if those records contain the information
63-15 required under this section.
64-16 SECTION 2. IC 22-2-19 IS ADDED TO THE INDIANA CODE AS
65-17 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
66-18 1, 2023]:
67-19 Chapter 19. Wage Reporting on Tax Advantaged Construction
68-20 Projects
69-21 Sec. 1. This chapter applies to a tax advantaged construction
70-22 project funded in whole or in part through a tax advantage granted
71-23 after June 30, 2023.
72-24 Sec. 2. As used in this chapter, "contractor" refers generally to
73-25 a contractor in a contractor tier, not including a tier 1 contractor.
74-26 Sec. 3. As used in this chapter, "contractor tier" has the
75-27 meaning set forth in IC 5-16-13-4.
76-28 Sec. 4. As used in this chapter, "construction" includes any of
77-29 the following:
78-30 (1) The alteration of a structure.
79-31 (2) The building of a structure.
80-32 (3) The reconstruction of a structure.
81-33 (4) The renovation of a structure.
82-34 (5) The expansion of a structure.
83-35 (6) The demolition of a structure.
84-36 (7) The improvement of a structure.
85-37 (8) The repair of a structure.
86-38 (9) The maintenance of a structure.
87-39 Sec. 5. As used in this chapter, "department" refers to the
88-40 department of labor created by IC 22-1-1-1.
89-41 Sec. 6. As used in this chapter, "Form WH-347" refers to the
90-42 weekly report of wages and hours of individuals employed on
91-SB 330—LS 6943/DI 75 3
92-1 construction projects prescribed by the Wage and Hour Division
93-2 of the United States Department of Labor.
94-3 Sec. 7. As used in this chapter, "political subdivision" has the
95-4 meaning set forth in IC 36-1-2-13.
96-5 Sec. 8. As used in this chapter, "public entity" refers to any of
97-6 the following:
98-7 (1) The state.
99-8 (2) A political subdivision.
100-9 (3) An instrumentality of the state or a political subdivision
101-10 (including a nonprofit corporation).
102-11 (4) A body corporate and politic established by law.
103-12 (5) An entity for a tax increment financing area described in
104-13 section 10(1) of this chapter.
105-14 Sec. 9. As used in this chapter, "tax advantage" refers to any of
106-15 the benefits described in section 10 of this chapter granted by a
107-16 public entity.
108-17 Sec. 10. As used in this chapter, "tax advantaged construction"
109-18 refers to the following:
110-19 (1) Construction in a geographic area including:
111-20 (A) an economic development area;
112-21 (B) a sports development area;
113-22 (C) a community revitalization area;
114-23 (D) a certified technology park;
115-24 (E) a tax increment financing district; and
116-25 (F) other similar areas or districts;
117-26 designated by a public entity as an allocation area or in which
118-27 tax increment property tax, adjusted gross income tax, or
119-28 gross retail and use tax revenue is dedicated to provide
120-29 improvements or to retire bonds issued to pay for
121-30 improvements.
122-31 (2) Construction for which an exemption, deduction, credit,
123-32 preferential rate, or other tax benefit is granted under
124-33 IC 6-1.1-12.1, IC 6-1.1-12.4, IC 6-1.1-12.5, IC 6-1.1-12.6, or
125-34 IC 6-3.1.
126-35 (3) Construction financed in any part with the proceeds of
127-36 bonds exempt from state taxation or issued by a public entity.
128-37 (4) Construction in an enterprise zone (IC 5-28-15).
129-38 (5) A rail project (as defined in IC 5-1.3-2-14 or IC 8-5-15-1).
130-39 Sec. 11. As used in this section, "report" refers to either of the
131-40 following:
132-41 (1) Form WH-347.
133-42 (2) A form prescribed by the department that is the equivalent
134-SB 330—LS 6943/DI 75 4
135-1 of Form WH-347.
136-2 Sec. 12. Any agreement between a person and public entity
137-3 granting a tax advantage must provide that:
138-4 (1) the tax advantage is conditioned on and subject to the
139-5 provisions of this chapter;
140-6 (2) all construction contracts at every contractor tier:
141-7 (A) entered into; and
142-8 (B) financed in whole or in part through the tax advantage;
143-9 must provide that the provisions and requirements of this
144-10 chapter are incorporated into the contract.
145-11 Sec. 13. Each week, a contractor shall complete and maintain in
146-12 its files a report.
147-13 Sec. 14. At the request of any of the following, a contractor shall
148-14 produce the report for inspection and verification:
149-15 (1) The public entity that has:
150-16 (A) contracted directly for the tax advantaged
151-17 construction; or
152-18 (B) granted the tax advantage through which the tax
153-19 advantaged construction is financed in whole or in part.
154-20 (2) The department.
155-21 Sec. 15. (a) If a public entity suspects that a violation of section
156-22 13 of this chapter has occurred, the public entity shall require the
157-23 contractor to remedy the violation not later than thirty (30) days
158-24 after the public entity notifies the contractor of the violation. The
159-25 notification to the contractor must be signed by the chief executive
160-26 officer of the public entity and sent by a method that enables the
161-27 public entity to verify receipt of the notice by the contractor.
162-28 (b) During the thirty (30) day period described in subsection (a),
163-29 the contractor may continue to work on the construction project.
164-30 If the contractor fails to remedy the violation within the thirty (30)
165-31 day period, the public entity shall find the contractor not
166-32 responsible and determine the length of time the contractor is
167-33 considered not responsible by the public entity.
168-34 (c) In making the determination of the length of time a
169-35 contractor is not responsible under subsection (b), the public entity
170-36 shall consider the severity of the violation. The period during
171-37 which a contractor is considered not responsible:
172-38 (1) may not exceed forty-eight (48) months; and
173-39 (2) begins on the date of substantial completion of the
174-40 construction project.
175-41 Sec. 16. The department shall prescribe a form that is the
176-42 equivalent of Form WH-347. The form must require that an agent
177-SB 330—LS 6943/DI 75 5
178-1 of the contractor completing the form certify the information on
179-2 the form under the penalties for perjury. The department may
180-3 provide that payroll records normally maintained by a contractor
181-4 satisfy the requirement of this chapter if those records contain the
182-5 information required under this chapter.
183-SB 330—LS 6943/DI 75 6
184-COMMITTEE REPORT
185-Madam President: The Senate Committee on Local Government, to
186-which was referred Senate Bill No. 330, has had the same under
187-consideration and begs leave to report the same back to the Senate with
188-the recommendation that said bill be AMENDED as follows:
189-Page 1, line 4, delete "any contractor tier on a public works project."
190-and insert "a contractor tier on a public works project, not
191-including a tier 1 contractor.".
192-Page 2, line 24, delete "any contractor tier." and insert "a
193-contractor tier, not including a tier 1 contractor.".
194-and when so amended that said bill do pass.
195-(Reference is to SB 330 as introduced.)
196-BUCK, Chairperson
197-Committee Vote: Yeas 10, Nays 0.
198-SB 330—LS 6943/DI 75
33+4 contractor in any contractor tier on a public works project.
34+5 (b) This section applies only to a public works contract entered
35+6 into after June 30, 2023.
36+7 (c) As used in this section, "department" refers to the
37+8 department of labor created by IC 22-1-1-1.
38+9 (d) As used in this section, "Form WH-347" refers to the weekly
39+10 report of wages and hours of individuals employed on construction
40+11 projects prescribed by the Wage and Hour Division of the United
41+12 States Department of Labor.
42+13 (e) As used in this section, "report" refers to either of the
43+14 following:
44+15 (1) Form WH-347.
45+16 (2) A form prescribed by the department that is the equivalent
46+17 of Form WH-347.
47+2023 IN 330—LS 6943/DI 75 2
48+1 (f) Each week, a contractor shall complete and maintain in its
49+2 files a report.
50+3 (g) At the request of any of the following, a contractor shall
51+4 produce the report for inspection and verification:
52+5 (1) The public agency that has contracted for the public works
53+6 project.
54+7 (2) The department.
55+8 (h) The department shall prescribe a form that is the equivalent
56+9 of Form WH-347. The form must require that an agent of the
57+10 contractor completing the form certify the information on the form
58+11 under the penalties for perjury. The department may provide that
59+12 payroll records normally maintained by a contractor satisfy the
60+13 requirement of this section if those records contain the information
61+14 required under this section.
62+15 SECTION 2. IC 22-2-19 IS ADDED TO THE INDIANA CODE AS
63+16 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
64+17 1, 2023]:
65+18 Chapter 19. Wage Reporting on Tax Advantaged Construction
66+19 Projects
67+20 Sec. 1. This chapter applies to a tax advantaged construction
68+21 project funded in whole or in part through a tax advantage granted
69+22 after June 30, 2023.
70+23 Sec. 2. As used in this chapter, "contractor" refers generally to
71+24 a contractor in any contractor tier.
72+25 Sec. 3. As used in this chapter, "contractor tier" has the
73+26 meaning set forth in IC 5-16-13-4.
74+27 Sec. 4. As used in this chapter, "construction" includes any of
75+28 the following:
76+29 (1) The alteration of a structure.
77+30 (2) The building of a structure.
78+31 (3) The reconstruction of a structure.
79+32 (4) The renovation of a structure.
80+33 (5) The expansion of a structure.
81+34 (6) The demolition of a structure.
82+35 (7) The improvement of a structure.
83+36 (8) The repair of a structure.
84+37 (9) The maintenance of a structure.
85+38 Sec. 5. As used in this chapter, "department" refers to the
86+39 department of labor created by IC 22-1-1-1.
87+40 Sec. 6. As used in this chapter, "Form WH-347" refers to the
88+41 weekly report of wages and hours of individuals employed on
89+42 construction projects prescribed by the Wage and Hour Division
90+2023 IN 330—LS 6943/DI 75 3
91+1 of the United States Department of Labor.
92+2 Sec. 7. As used in this chapter, "political subdivision" has the
93+3 meaning set forth in IC 36-1-2-13.
94+4 Sec. 8. As used in this chapter, "public entity" refers to any of
95+5 the following:
96+6 (1) The state.
97+7 (2) A political subdivision.
98+8 (3) An instrumentality of the state or a political subdivision
99+9 (including a nonprofit corporation).
100+10 (4) A body corporate and politic established by law.
101+11 (5) An entity for a tax increment financing area described in
102+12 section 10(1) of this chapter.
103+13 Sec. 9. As used in this chapter, "tax advantage" refers to any of
104+14 the benefits described in section 10 of this chapter granted by a
105+15 public entity.
106+16 Sec. 10. As used in this chapter, "tax advantaged construction"
107+17 refers to the following:
108+18 (1) Construction in a geographic area including:
109+19 (A) an economic development area;
110+20 (B) a sports development area;
111+21 (C) a community revitalization area;
112+22 (D) a certified technology park;
113+23 (E) a tax increment financing district; and
114+24 (F) other similar areas or districts;
115+25 designated by a public entity as an allocation area or in which
116+26 tax increment property tax, adjusted gross income tax, or
117+27 gross retail and use tax revenue is dedicated to provide
118+28 improvements or to retire bonds issued to pay for
119+29 improvements.
120+30 (2) Construction for which an exemption, deduction, credit,
121+31 preferential rate, or other tax benefit is granted under
122+32 IC 6-1.1-12.1, IC 6-1.1-12.4, IC 6-1.1-12.5, IC 6-1.1-12.6, or
123+33 IC 6-3.1.
124+34 (3) Construction financed in any part with the proceeds of
125+35 bonds exempt from state taxation or issued by a public entity.
126+36 (4) Construction in an enterprise zone (IC 5-28-15).
127+37 (5) A rail project (as defined in IC 5-1.3-2-14 or IC 8-5-15-1).
128+38 Sec. 11. As used in this section, "report" refers to either of the
129+39 following:
130+40 (1) Form WH-347.
131+41 (2) A form prescribed by the department that is the equivalent
132+42 of Form WH-347.
133+2023 IN 330—LS 6943/DI 75 4
134+1 Sec. 12. Any agreement between a person and public entity
135+2 granting a tax advantage must provide that:
136+3 (1) the tax advantage is conditioned on and subject to the
137+4 provisions of this chapter;
138+5 (2) all construction contracts at every contractor tier:
139+6 (A) entered into; and
140+7 (B) financed in whole or in part through the tax advantage;
141+8 must provide that the provisions and requirements of this
142+9 chapter are incorporated into the contract.
143+10 Sec. 13. Each week, a contractor shall complete and maintain in
144+11 its files a report.
145+12 Sec. 14. At the request of any of the following, a contractor shall
146+13 produce the report for inspection and verification:
147+14 (1) The public entity that has:
148+15 (A) contracted directly for the tax advantaged
149+16 construction; or
150+17 (B) granted the tax advantage through which the tax
151+18 advantaged construction is financed in whole or in part.
152+19 (2) The department.
153+20 Sec. 15. (a) If a public entity suspects that a violation of section
154+21 13 of this chapter has occurred, the public entity shall require the
155+22 contractor to remedy the violation not later than thirty (30) days
156+23 after the public entity notifies the contractor of the violation. The
157+24 notification to the contractor must be signed by the chief executive
158+25 officer of the public entity and sent by a method that enables the
159+26 public entity to verify receipt of the notice by the contractor.
160+27 (b) During the thirty (30) day period described in subsection (a),
161+28 the contractor may continue to work on the construction project.
162+29 If the contractor fails to remedy the violation within the thirty (30)
163+30 day period, the public entity shall find the contractor not
164+31 responsible and determine the length of time the contractor is
165+32 considered not responsible by the public entity.
166+33 (c) In making the determination of the length of time a
167+34 contractor is not responsible under subsection (b), the public entity
168+35 shall consider the severity of the violation. The period during
169+36 which a contractor is considered not responsible:
170+37 (1) may not exceed forty-eight (48) months; and
171+38 (2) begins on the date of substantial completion of the
172+39 construction project.
173+40 Sec. 16. The department shall prescribe a form that is the
174+41 equivalent of Form WH-347. The form must require that an agent
175+42 of the contractor completing the form certify the information on
176+2023 IN 330—LS 6943/DI 75 5
177+1 the form under the penalties for perjury. The department may
178+2 provide that payroll records normally maintained by a contractor
179+3 satisfy the requirement of this chapter if those records contain the
180+4 information required under this chapter.
181+2023 IN 330—LS 6943/DI 75