Some of the legislation passed in the General Assembly this session works to strengthen and clarify laws already in the books. By doing this, we often can provide local governments or businesses in Indiana the tools they need to grow and thrive.
One example, HEA 1325, is a law that clarifies to the Department of Revenue that plane reconfiguration is a sales tax exempt activity. The legislation helps to create a business friendly tax environment that we hope will attract more aviation companies similar to the ones already employing hundreds of Hoosiers. The same legislation also provides a sales and use tax exemption for transactions involving personal property used in two-seater Indy 500 style race cars. This will also encourage the companies that invest millions of dollars in the racing industry every year to continue calling Indiana home and employ Hoosiers.
Construction companies across the nation took a big hit during the recession. They are a vital part of our state economy, and ensuring that they can continue to grow and recover will positively affect all Hoosiers. With that in mind, we passed legislation this year that streamlines the claims and bonding procedures for construction companies who deal with sub-contractors during public works projects.
In Indiana, bondage and retainage requirements have been addressed in multiple Indiana titles, none of which completely aligned. Because of this, general contractors have run into problems where their sub-contractors finish a job but do not complete the correct paperwork with the state. This would leave general contractors holding the bill.
The legislation in HEA 1163 requires a person who has a claim against the retainage or the payment bond of a contractor on a public works project to make the claim and deliver a copy of the claim to the contractor no later than the stated times in the contract. This will allow general contractors time to account for any changes and also not leave them in a situation where they do not receive final payment or incur large losses when paying the sub-contractor.
I believe this legislation will help both the aviation and construction companies in Indiana to grow and, subsequently, help lead our state to more economic growth. If you have any suggestions on how we might be able to assist other industries or local businesses please contact me. I can be reached by phone at 1-800-382-9841 or by email at H63@in.gov.