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260F.3 Agreement.

1. A community college may enter into an agreement to establish a project. If an agreement is entered into, the community college and the business shall notify the department of revenue and finance as soon as possible. An agreement shall provide for program costs, including deferred costs, for a project creating new jobs by providing education and training of workers for a new or expanding small business which may be paid from one or a combination of the following sources:

a. Incremental property taxes to be received or derived from the business' property where new jobs are created as a result of the project.

b. New jobs credit from withholding to be received or derived from new employment resulting from the project.

c. Tuition, student fees, or special charges fixed by the board of directors to defray program costs in whole or in part.

d. Guarantee of payments to be received under paragraph "a", "b", or "c".

2. Program costs, including deferred costs, for a project retraining workers of existing businesses, may be paid from one or a combination of the following sources:

a. Loan repayments provided by the business.

b. Tuition, student fees, or special charges fixed by the board of directors to defray program costs in whole or in part.

3. Payment of program costs shall not be deferred for a period longer than ten years from the date of commencement of the project.

4. Costs of on-the-job training shall not apply to retraining projects. Costs of on-the-job training for new jobs training projects shall not exceed fifty percent of the annual gross payroll costs for up to one year of the new jobs. For purposes of this subsection, "gross payroll" can be the gross wages, salaries, and benefits for the jobs in training in the project.

5. If applicable, an agreement shall include a provision which fixes the minimum amount of incremental property taxes, new jobs credit from withholding, or tuition and fee payments which shall be paid for program costs.

6. Any payments required to be made by a business are a lien upon the business' property until paid and have equal precedence with ordinary taxes and shall not be divested by a judicial sale. Property subject to the lien may be sold for sums due and delinquent at a tax sale, with the same forfeitures, penalties, and consequences as for the nonpayment of ordinary taxes. The purchaser at tax sale obtains the property subject to the remaining payments.

7. An agreement shall contain provisions relating to the type of financial assistance being provided which may be in the form of grants, loans, forgivable loans, or a combination of grants and loans according to guidelines adopted by the department of economic development. However, the amount of financial assistance provided for a project under this chapter shall not exceed fifty thousand dollars. Financial assistance for a new jobs project shall be limited to loans. Financial assistance for a retraining project shall not include a grant or forgivable loan unless the result of the retooling creates, at the business production site subject to the retooling, a net increase in the number of employment positions, a net increase in the quality of the employment positions held by participating workers, or a net increase in wages paid to participating workers. The financial assistance provided to a participating business must be based on the actual cost of training or retraining participating workers under the project.

8. Before a community college and a business enter into an agreement to establish a project, the community college shall consult with the local office of the division of job service of the department of employment services to determine if there already exists in the community, a skilled or experienced group of unemployed workers, as a result of a plant closing or reduction in force, sufficiently large to supply the needs of the new or expanding business. If such a supply of workers exists, the community college shall enter into the agreement only if the business agrees to give preference in hiring for new jobs to those workers over any other workers who do not have greater qualifications.

Section History: Recent form

85 Acts, ch 235, §3 ~ICS85, § 280C.3 ~I90 Acts, ch 1253, § 84; 92 Acts, ch 1042, §3, 4 ~IC93, § 260F.3 ~I94 Acts, ch 1182, §3, 4

Internal References

Referred to in § 403.21

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