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HOUSE BILL No. 1001

Citations Affected: IC 4-15; IC 4-30; IC 4-33; IC 5-13; IC 6-1.1; IC 12-10; IC 12-15; IC 13-17; IC 13-18; IC 20-5.5; IC 20-8.1; IC 20-12; IC 21-1; IC 21-2; IC 21-3; IC 21-6.1; IC 23-13; IC 25-1; IC 32-34; noncode.

Effective: January 1, 2002 (retroactive); July 1, 2002 (retroactive); January 1, 2003 (retroactive); upon passage; July 1, 2003.

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Crawford, Cochran
(SENATE SPONSORS _ MEEKS R, SIMPSON)

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    January 15, 2003, read first time and referred to Committee on Ways and Means.
    February 17, 2003, amended reported _ Do Pass.
    February 19, 2003, read second time, amended, ordered engrossed.
    February 20, 2003, engrossed. Read third time, referred to Committee of One, amended; passed. Yeas 51, nays 49.
    February 21, 2003, re-engrossed.

    March 10, 2003, read first time and referred to Committee on Finance.
    March 31, 2003, amended, reported favorably _ Do Pass.
    April 3, 2003, read second time, amended, ordered engrossed.

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Digest Continued

recipients of a county that the office determines is feasible and cost effective to enroll in the Medicaid risk-based managed care program. Requires the air pollution control board to establish fees for the auto emissions testing program. Authorizes loans from the wastewater revolving loan fund for certain purposes related to cleanup of brownfields. Provides for the use of money from the pension stabilization fund to pay pension liabilities of the state teachers' retirement fund. Merges the Indiana professional licensing agency and the health professions bureau. Provides that the trustees of Ivy Tech State College must publish fee and tuition increases in their minutes. Specifies the date when money payable as the result of an insurance company demutualization is considered abandoned for purposes of the unclaimed property law. Authorizes bonding for certain projects. Requires the transfer of certain amounts from the abandoned property fund to the state general fund. Provides for a loan from the public depository insurance fund and the transfer of money from other funds to the state general fund. Credits certain money received from the federal government to the unemployment insurance benefit fund. Provides that the state budget agency is responsible for oversight of certain state personnel functions. Requires that pharmacies that dispense prescription drugs to Medicaid recipients in a health facility provide certain information to OMPP and requires OMPP to use the information to determine certain reimbursement for the drugs dispensed. Provides that advances made by the state board of finance from the abandoned property fund to charter schools are forgiven. Repeals: (1) the statute that establishes the health professions bureau; (2) a noncode provision concerning a Medicaid waiver for persons with autism that makes an appropriation; and (3) provisions concerning school funding that are replaced by the school funding formula in this bill. Makes other changes.

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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 this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2002 Regular or Special Session of the General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning state and local administration and to make an appropriation.

    SECTION 39. IC 4-15-1.8-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) The department shall do the following:
        (1) Develop personnel policies, methods, procedures, and standards for all state agencies.
        (2) Formulate, establish, and administer position classification plans and salary and wage schedules, all subject to final approval by the governor.
        (3) Allocate positions in the state agencies to their proper classifications.
        (4) Approve employees for transfer, demotion, promotion, suspension, layoff, and dismissal.
        (5) Rate employees' service.
        (6) Arrange with state agency heads for employee training.
        (7) Investigate the need for positions in the state agencies.
        (8) Promulgate and enforce personnel rules.
        (9) Make and administer examinations for employment and for promotions.
        (10) Maintain personnel records and a roster of the personnel of all state agencies.
        (11) Render personnel services to the political subdivisions of

Indiana.
        (12) Investigate the operation of personnel policies in all state agencies.
        (13) Assist state agencies in the improvement of their personnel procedures.
        (14) Conduct a vigorous program of recruitment of qualified and able persons for the state agencies.
        (15) Advise the governor and the general assembly of legislation needed to improve the personnel system of this state.
        (16) Furnish any information and counsel requested by the governor or the general assembly.
        (17) Establish and administer an employee training and career advancement program.
        (18) Administer the state personnel law, IC 4-15-2.
        (19) Institute an employee awards system designed to encourage all state employees to submit suggestions that will reduce the costs or improve the quality of state agencies.
        (20) Survey the administrative organization and procedures, including personnel procedures, of all state agencies, and submit to the governor measures to secure greater efficiency and economy, to minimize the duplication of activities, and to effect better organization and procedures among state agencies.
    (b) Salary and wage schedules established by the department under subsection (a) must provide for the establishment of overtime policies, which must include the following:
        (1) Definition of overtime.
        (2) Determination of employees or classes eligible for overtime pay.
        (3) Procedures for authorization.
        (4) Methods of computation.
        (5) Procedures for payment.
        (6) A provision that there shall be no mandatory adjustments to an employee's established work schedule in order to avoid the payment of overtime.
    (c) The state personnel advisory board shall advise the director and cooperate in the improvement of all the personnel policies of the state.
    (d) By January 1, 1984, the department shall establish programs of temporary appointment for employees of state agencies. A program established under this subsection must contain at least the following provisions:
        (1) A temporary appointment may not exceed one hundred eighty (180) working days in any twelve (12) month period.
        (2) The department may allow exceptions to the prohibition in subdivision (1) with the approval of the state budget agency.
        (3) A temporary appointment in an agency covered by IC 4-15-2 is governed by the procedures of that chapter.
         (4) A temporary appointment does not constitute creditable service for purposes of the public employees' retirement program under IC 5-10.2 and IC 5-10.3. However, an employee who served in an intermittent form of temporary employment after June 30, 1986, and before July 1, 2003, shall receive creditable service for the period of temporary employment.
    SECTION 40. IC 4-15-2-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. Except as provided in

IC 4-15-1.8-7(d), all persons covered on January 1, 1966, by this chapter or coming under the provisions of this chapter after January 1, 1966, shall be eligible for, shall participate in, and shall receive the benefits of the public employees retirement program as provided by IC 5-10.2 and IC 5-10.3.

SOURCE: IC 4-30-16-3; (03)AM100111.6. -->     SECTION 41. IC 4-30-16-3, AS AMENDED BY P.L.273-1999, SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) The commission shall transfer the surplus revenue in the administrative trust fund as follows:
        (1) Before the last business day of January, April, July, and October, the commission shall transfer to the treasurer of state, for deposit in the Indiana state teachers' retirement fund (IC 21-6.1-2), before July 1, 2005, seven million five hundred thousand dollars ($7,500,000) and after June 30, 2005, an amount equal to the lesser of:
            (A) seven million five hundred thousand dollars ($7,500,000); or
            (B) the additional quarterly contribution needed so that the ratio of the unfunded liability of the Indiana state teachers' retirement fund compared to total active teacher payroll is as close as possible to but not greater than the ratio that existed on the preceding July 1.
         After June 30, 2003, and before July 1, 2005, the amount deposited in a state fiscal year under this subdivision in the Indiana state teachers' retirement fund (IC 21-6.1-2) shall only be used by the board to reduce the employer contribution rate that school corporations would otherwise pay after June 30, 2003, and before July 1, 2005, to the Indiana state teachers' retirement fund (IC 21-6.1-2), as computed under IC 5-10.2-2 and certified under IC 21-6.1-7-12, for teachers covered by the 1996 account, including a proportionate share of administration expenses for the 1996 account. On or before June 15, 2005, and June 15 of each year thereafter, the board of trustees of the Indiana state teachers' retirement fund shall submit to the treasurer of state, each member of the pension management oversight commission, and the auditor of state its estimate of the quarterly amount needed to freeze the unfunded accrued liability of the pre-1996 account (as defined in IC 21-6.1-1-6.9) as a percent of payroll. The estimate shall be based on the most recent actuarial valuation of the fund. Notwithstanding any other law, including any appropriations law resulting from a budget bill (as defined in IC 4-12-1-2), after June 30, 2005, the money transferred under this subdivision shall be set aside in a special account to be used as a credit against the unfunded accrued liability of the pre-1996 account (as defined in IC 21-6.1-1-6.9) of the Indiana state teachers' retirement fund. The money transferred is in addition to the appropriation needed to pay benefits for the state fiscal year.
        (2) Before the last business day of January, April, July, and October, the commission shall transfer:
            (A) two million five hundred thousand dollars ($2,500,000) of the surplus revenue to the treasurer of state for deposit in the "k" portion of the pension relief fund (IC 5-10.3-11); and
            (B) five million dollars ($5,000,000) of the surplus revenue to

the treasurer of state for deposit in the "m" portion of the pension relief fund (IC 5-10.3-11).
        (3) The surplus revenue remaining in the fund on the last day of January, April, July, and October after the transfers under subdivisions (1) and (2) shall be transferred by the commission to the treasurer of state for deposit on that day in the build Indiana fund.
    (b) The commission may make transfers to the treasurer of state more frequently than required by subsection (a). However, the number of transfers does not affect the amount that is required to be transferred for the purposes listed in subsection (a)(1) and (a)(2). Any amount transferred during the month in excess of the amount required to be transferred for the purposes listed in subsection (a)(1) and (a)(2) shall be transferred to the build Indiana fund.

SOURCE: IC 4-33-4-21; (03)ES0176.1.2. -->     SECTION 42. IC 4-33-4-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 21. (a) A licensed owner or any other person must apply for and receive the commission's approval before:
        (1) an owner's license is:
            (A) transferred;
            (B) sold; or
            (C) purchased; or
        (2) a voting trust agreement or other similar agreement is established with respect to the owner's license.
    (b) The commission shall adopt rules governing the procedure a licensed owner or other person must follow to take an action under subsection (a). The rules must specify that a person who obtains an ownership interest in a license must meet the criteria of this article and any rules adopted by the commission. A licensed owner may transfer an owner's license only in accordance with this article and rules adopted by the commission.
    (c) A licensed owner or any other person may not:
        (1) lease;
        (2) hypothecate; or
        (3) borrow or loan money against;
an owner's license.
     (d) A transfer fee is imposed on a licensed owner who purchases or otherwise acquires a controlling interest, as determined under the rules of the commission, in a second owner's license. The fee is equal to two million dollars ($2,000,000). The commission shall collect and deposit a fee imposed under this subsection in the state general fund.

SOURCE: IC 4-33-4-22; (03)AM100111.7. -->     SECTION 43. IC 4-33-4-22 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 22. (a) The commission may not adopt a rule or resolution limiting the ordinary business hours in which a licensed owner that has implemented flexible scheduling under IC 4-33-6-21 may conduct gambling operations.
     (b) This section may not be construed to limit the commission's power to enforce this article:
        (1) under IC 4-33-4-1(a)(6), IC 4-33-4-1(a)(7), or IC 4-33-4-8; or
        (2) respond to an emergency, as determined by the commission.
    SECTION 44. IC 4-33-6-21, AS ADDED BY P.L.192-2002(ss),

SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 21. (a) A licensed owner may submit a plan for flexible scheduling to the commission by a date designated by the commission. Upon receipt of an appropriate plan, the commission shall authorize flexible scheduling and the licensed owner shall implement the flexible scheduling plan by the date designated by the commission.
     (b) A licensed owner that:
        (1) submits a plan for flexible scheduling to the commission may include provisions; or
        (2) has implemented a flexible scheduling plan may amend the plan to include provisions;
to conduct gambling operations for up to twenty-four (24) hours a day. Upon receipt of a plan or an amendment to a plan concerning operating hours, the commission shall authorize the licensed owner to implement the plan or amendment for the days and hours specified in the plan or amendment. The licensed owner shall implement the provisions related to operating days and hours by the date designated by the commission. If the licensed owner fails or ceases to operate in accordance with the authorized provisions concerning operating days and hours, the commission may rescind the authorization.

SOURCE: IC 4-33-13-1; (03)AM100111.12. -->     SECTION 45. IC 4-33-13-1, AS AMENDED BY P.L.192-2002(ss), SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002 (RETROACTIVE)]: Sec. 1. (a) This section does not apply to a riverboat that has implemented flexible scheduling under IC 4-33-6-21.
    (b) Subject to section 1.5(h) of this chapter, a tax is imposed on the adjusted gross receipts received from gambling games authorized under this article at the rate of twenty-two and five-tenths percent (22.5%) of the amount of the adjusted gross receipts.
    (c) The licensed owner shall remit the tax imposed by this chapter to the department before the close of the business day following the day the wagers are made.
    (d) The department may require payment under this section to be made by electronic funds transfer (as defined in IC 4-8.1-2-7(e)).
    (e) If the department requires taxes to be remitted under this chapter through electronic funds transfer, the department may allow the licensed owner to file a monthly report to reconcile the amounts remitted to the department.
    (f) The department may allow taxes remitted under this section to be reported on the same form used for taxes paid under IC 4-33-12.

SOURCE: IC 4-33-13-1.5; (03)AM100111.13. -->     SECTION 46. IC 4-33-13-1.5, AS ADDED BY P.L.192-2002(ss), SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002 (RETROACTIVE)]: Sec. 1.5. (a) This section applies only to a riverboat that has implemented flexible scheduling under IC 4-33-6-21.
    (b) A graduated tax is imposed on the adjusted gross receipts received from gambling games authorized under this article as follows:
        (1) Fifteen percent (15%) of the first twenty-five million dollars ($25,000,000) of adjusted gross receipts received during the period beginning July 1 of each year and ending June 30 of the following year.
        (2) Twenty percent (20%) of the adjusted gross receipts in excess of twenty-five million dollars ($25,000,000) but not exceeding fifty

million dollars ($50,000,000) received during the period beginning July 1 of each year and ending June 30 of the following year.
        (3) Twenty-five percent (25%) of the adjusted gross receipts in excess of fifty million dollars ($50,000,000) but not exceeding seventy-five million dollars ($75,000,000) received during the period beginning July 1 of each year and ending June 30 of the following year.
        (4) Thirty percent (30%) of the adjusted gross receipts in excess of seventy-five million dollars ($75,000,000) but not exceeding one hundred fifty million dollars ($150,000,000) received during the period beginning July 1 of each year and ending June 30 of the following year.
        (5) Thirty-five percent (35%) of all adjusted gross receipts in excess of one hundred fifty million dollars ($150,000,000).
The tax rates imposed under this section apply to adjusted gross receipts received beginning the date flexible scheduling is implemented under IC 4-33-6-21.
    (c) The licensed owner shall remit the tax imposed by this chapter to the department before the close of the business day following the day the wagers are made.
    (d) The department may require payment under this section to be made by electronic funds transfer (as defined in IC 4-8.1-2-7(f)).
    (e) If the department requires taxes to be remitted under this chapter through electronic funds transfer, the department may allow the licensed owner to file a monthly report to reconcile the amounts remitted to the department.
    (f) The department may allow taxes remitted under this section to be reported on the same form used for taxes paid under IC 4-33-12.
     (g) If a riverboat implements flexible scheduling during any part of a period beginning July 1 of each year and ending June 30 of the following year, the tax rate imposed on the adjusted gross receipts received while the riverboat implements flexible scheduling shall be computed as if the riverboat had engaged in flexible scheduling during the entire period beginning July 1 of each year and ending June 30 of the following year.
     (h) If a riverboat:
        (1) implements flexible scheduling during any part of a period beginning July 1 of each year and ending June 30 of the following year; and
        (2) before the end of that period ceases to operate the riverboat with flexible scheduling;
the riverboat shall continue to pay a wagering tax at the tax rates imposed under subsection (b) until the end of that period as if the riverboat had not ceased to conduct flexible scheduling.

SOURCE: IC 4-33-13-5; (03)PD4513.2. -->     SECTION 47. IC 4-33-13-5, AS AMENDED BY HEA 1902-2003, SECTION 55 AND AS AMENDED BY HEA 1519-2003, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. (a) This subsection does not apply to tax revenue remitted by an operating agent operating a riverboat in a historic hotel district. After funds are appropriated under section 4 of this chapter, each month the treasurer of state shall distribute the tax revenue deposited in the state gaming fund under this chapter to the following:
        (1) The first thirty-three million dollars ($33,000,000) of tax revenues collected under this chapter shall be set aside for revenue

sharing under subsection (e).
        (2) Subject to subsection (c), twenty-five percent (25%) of the remaining tax revenue remitted by each licensed owner shall be paid:
            (A) to the city that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of:
                (i) a city described in IC 4-33-12-6(b)(1)(A); or
                (ii) a city located in a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000); or
            (B) to the county that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of a riverboat whose home dock is not in a city described in clause (A).
        (3) Subject to subsection (d), the remainder of the tax revenue remitted by each licensed owner shall be paid to the property tax replacement fund. In each state fiscal year beginning after June 30, 2003, the treasurer of state shall make the transfer required by this subdivision not later than the last business day of the month in which the tax revenue is remitted to the state for deposit in the state gaming fund. However, if tax revenue is received by the state on the last business day in a month, the treasurer of state may transfer the tax revenue to the property tax replacement fund in the immediately following month.
    (b) This subsection applies only to tax revenue remitted by an operating agent operating a riverboat in a historic hotel district. After funds are appropriated under section 4 of this chapter, each month the treasurer of state shall distribute the tax revenue deposited in the state gaming fund under this chapter as follows:
        (1) Thirty-seven and one half percent (37.5%) shall be paid to the property tax replacement fund established under IC 6-1.1-21.
        (2) Thirty-seven and one-half percent (37.5%) shall be paid to the West Baden Springs historic hotel preservation and maintenance fund established by IC 36-7-11.5-11(b). However, at any time the balance in that fund exceeds twenty million dollars ($20,000,000), the amount described in this subdivision shall be paid to the property tax replacement fund established under IC 6-1.1-21.
        (3) Five percent (5%) shall be paid to the historic hotel preservation commission established under IC 36-7-11.5.
        (4) Ten percent (10%) shall be paid in equal amounts to each town that:
            (A) is located in the county in which the riverboat docks; and
            (B) contains a historic hotel.
        The town council shall appropriate a part of the money received by the town under this subdivision to the budget of the town's tourism commission.
        (5) Ten percent (10%) shall be paid to the county treasurer of the county in which the riverboat is docked. The county treasurer shall distribute the money received under this subdivision as follows:
            (A) Twenty percent (20%) shall be quarterly distributed to the county treasurer of a county having a population of more than thirty-nine thousand six hundred (39,600) but less than forty thousand (40,000) for appropriation by the county fiscal body

after receiving a recommendation from the county executive. The county fiscal body for the receiving county shall provide for the distribution of the money received under this clause to one (1) or more taxing units (as defined in IC 6-1.1-1-21) in the county under a formula established by the county fiscal body after receiving a recommendation from the county executive.
            (B) Twenty percent (20%) shall be quarterly distributed to the county treasurer of a county having a population of more than ten thousand seven hundred (10,700) but less than twelve thousand (12,000) for appropriation by the county fiscal body after receiving a recommendation from the county executive. The county fiscal body for the receiving county shall provide for the distribution of the money received under this clause to one (1) or more taxing units (as defined in IC 6-1.1-1-21) in the county under a formula established by the county fiscal body after receiving a recommendation from the county executive.
            (C) Sixty percent (60%) shall be retained by the county where the riverboat is docked for appropriation by the county fiscal body after receiving a recommendation from the county executive. The county fiscal body shall provide for the distribution of part or all of the money received under this clause to the following under a formula established by the county fiscal body:
                (i) A town having a population of more than two thousand two hundred (2,200) but less than three thousand five hundred (3,500) located in a county having a population of more than nineteen thousand three hundred (19,300) but less than twenty thousand (20,000).
                (ii) A town having a population of more than three thousand five hundred (3,500) located in a county having a population of more than nineteen thousand three hundred (19,300) but less than twenty thousand (20,000).
    (c) For each city and county receiving money under subsection (a)(2)(A) or (a)(2)(C), the treasurer of state shall determine the total amount of money paid by the treasurer of state to the city or county during the state fiscal year 2002. The amount determined is the base year revenue for the city or county. The treasurer of state shall certify the base year revenue determined under this subsection to the city or county. The total amount of money distributed to a city or county under this section during a state fiscal year may not exceed the entity's base year revenue. For each state fiscal year beginning after June 30, 2002, the treasurer of state shall pay that part of the riverboat wagering taxes that:
        (1) exceeds a particular city or county's base year revenue; and
        (2) would otherwise be due to the city or county under this section;
to the property tax replacement fund instead of to the city or county.
    (d) Each state fiscal year the treasurer of state shall transfer from the tax revenue remitted to the property tax replacement fund under subsection (a)(3) to the build Indiana fund an amount that when added to the following may not exceed two hundred fifty million dollars ($250,000,000):
        (1) Surplus lottery revenues under IC 4-30-17-3.
        (2) Surplus revenue from the charity gaming enforcement fund under IC 4-32-10-6.

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        (3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
The treasurer of state shall make transfers on a monthly basis as needed to meet the obligations of the build Indiana fund. If in any state fiscal year insufficient money is transferred to the property tax replacement fund under subsection (a)(3) to comply with this subsection, the treasurer of state shall reduce the amount transferred to the build Indiana fund to the amount available in the property tax replacement fund from the transfers under subsection (a)(3) for the state fiscal year.
    (e) Before August 15 of 2003 and each year thereafter, the treasurer of state shall distribute the wagering taxes set aside for revenue sharing under subsection (a)(1) to the county treasurer of each county that does not have a riverboat according to the ratio that the county's population bears to the total population of the counties that do not have a riverboat. Except as provided in subsection (h), the county auditor shall distribute the money received by the county under this subsection as follows:
        (1) To each city located in the county according to the ratio the city's population bears to the total population of the county.
        (2) To each town located in the county according to the ratio the town's population bears to the total population of the county.
        (3) After the distributions required in subdivisions (1) and (2) are made, the remainder shall be retained by the county.
    (f) Money received by a city, town, or county under subsection (e) or (h) may be used for any of the following purposes:
        (1) To reduce the property tax levy of the city, town, or county for a particular year (a property tax reduction under this subdivision does not reduce the maximum levy of the city, town, or county under IC 6-1.1-18.5);
        (2) For deposit in a special fund or allocation fund created under IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and IC 36-7-30 to provide funding for additional credits for property tax replacement in property tax increment allocation areas or debt repayment.
        (3) To fund sewer and water projects, including storm water management projects.
        (4) For police and fire pensions.
        (5) To carry out any governmental purpose for which the money is appropriated by the fiscal body of the city, town, or county. Money used under this subdivision does not reduce the property tax levy of the city, town, or county for a particular year or reduce the maximum levy of the city, town, or county under IC 6-1.1-18.5.
    (g) This subsection does not apply to an entity receiving money under IC 4-33-12-6(c). Before September 15 of 2003 and each year thereafter, the treasurer of state shall determine the total amount of money distributed to an entity under IC 4-33-12-6 during the preceding state fiscal year. If the treasurer of state determines that the total amount of money distributed to an entity under IC 4-33-12-6 during the preceding state fiscal year was less than the entity's base year revenue (as determined under IC 4-33-12-6), the treasurer of state shall make a supplemental distribution to the entity from taxes collected under this chapter and deposited into the property tax replacement fund. The amount of the supplemental distribution is equal to the difference between the entity's base year revenue (as determined under

IC 4-33-12-6) and the total amount of money distributed to the entity during the preceding state fiscal year under IC 4-33-12-6.
    (h) This section applies only to a county containing a consolidated city. The county auditor shall distribute the money received by the county under subsection (d) as follows:
        (1) To each city, other than a consolidated city, located in the county according to the ratio that the city's population bears to the total population of the county.
        (2) To each town located in the county according to the ratio that the town's population bears to the total population of the county.
        (3) After the distributions required in subdivisions (1) and (2) are made, the remainder shall be paid in equal amounts to the consolidated city and the county.

SOURCE: ; (03)AM100111.83. -->     SECTION 48. [EFFECTIVE JULY 1, 2002 (RETROACTIVE)] (a) This SECTION applies to the calculation and collection of wagering taxes on the adjusted gross receipts of a riverboat received:
        (1) on or after the date that the riverboat implemented flexible scheduling under IC 4-33-6-21; and
        (2) before July 1, 2003.
    (b) The definitions in IC 4-33-2 apply throughout this SECTION.
    (c) The general assembly does not acquiesce in any interpretation of IC 4-33-13-1.5 and P.L.292-2002(ss), SECTION 205 that excludes adjusted gross receipts of a riverboat received after June 30, 2002, and before the date that the riverboat implemented flexible scheduling under IC 4-33-6-21 from the determination of which wagering tax rate to apply to adjusted gross receipts of the riverboat received on or after the riverboat implemented flexible scheduling under IC 4-33-6-21.
    (d) Wagering taxes imposed under IC 4-33-13-1.5 on adjusted gross receipts received on or after the date that the riverboat implemented flexible scheduling under IC 4-33-6-21 must be calculated and deposited using a graduated wagering tax rate selected (as stated in IC 4-33-13-1.5) through a calculation that includes "adjusted gross receipts received during the period beginning July 1 of each year and ending June 30 of the following year".
    (e) All penalties and interest otherwise due from a riverboat that underpaid the amount of wagering tax due after June 30, 2002, and before May 1, 2003, as a result of a failure to include adjusted gross receipts received by the riverboat after June 30, 2002, and before the date that the riverboat implemented flexible scheduling under IC 4-33-6-21 in the determination of which wagering tax rate to apply to adjusted gross receipts received after the riverboat implemented flexible scheduling under IC 4-33-6-21 are waived if the riverboat pays the unpaid balance due in two (2) equal installments on the following dates:
        (1) July 1, 2003.
        (2) July 1, 2004.
    SECTION 49. IC 6-2.5-4-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4.5. (a) A person is a retail merchant making a retail transaction when the person furnishes rooms or lodgings to another person on a complimentary basis if:

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        (1) the rooms or lodgings are furnished for periods of less than thirty (30) days; and
        (2) the rooms or lodgings are located in a hotel, motel, inn, tourist camp, tourist cabin, or other place where rooms or lodgings are regularly furnished for consideration.
    (b) The state gross retail tax applicable to a retail transaction described in subsection (a) is measured by the amount of gross retail income attributed to the transaction under this subsection. The amount of gross retail income attributed to a retail transaction described in subsection (a) is equal to the amount of gross retail income received by the retail merchant from renting a comparable room or lodging on the date the complimentary room or lodging is provided. The state gross retail tax imposed on a retail transaction described in subsection (a) is six percent (6%) of the gross retail income attributed to the transaction.

SOURCE: IC 6-2.5-6-15; (03)AM100111.234. -->     SECTION 50. IC 6-2.5-6-15 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 15. A retail merchant described in IC 6-2.5-4-4.5 shall file with each return required under this chapter a report for the reporting period covered by the return. The report must contain the following information:
        (1) The number of rooms or lodgings rented during the reporting period and the total amount of state gross retail taxes remitted with respect to the rooms or lodgings.
        (2) The number of complimentary rooms or lodgings provided during the reporting period and the total amount of state gross retail taxes remitted with respect to those rooms or lodgings.

SOURCE: IC 9-29-3-4; (03)AM100111.24. -->     SECTION 51. IC 9-29-3-4, AS AMENDED BY P.L.176-2001, SECTION 18, AND AS AMENDED BY P.L.291-2001, SECTION 182, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. (a) The service charge for each of the first twelve thousand (12,000) vehicle registrations at a license branch each year is
        (1) one dollar and seventy-five cents ($1.75). during 2002 and 2003; and
        (2) one dollar and twenty-five cents ($1.25) during 2004 and thereafter.
    (b) The service charge for each of the next thirty-eight thousand (38,000) vehicle registrations at that license branch each year is
        (1) one dollar and fifty cents ($1.50). during 2002 and 2003; and
        (2) one dollar ($1) during 2004 and thereafter.
    (c) The service charge for each additional vehicle registration at that license branch each year is
        (1) one dollar and twenty-five cents ($1.25). during 2002 and 2003; and
        (2) seventy-five cents ($0.75) during 2004 and thereafter.
    (d) Fifty cents ($0.50) of each service charge collected under this section during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-3-6; (03)AM100111.25. -->     SECTION 52. IC 9-29-3-6, AS AMENDED BY P.L.176-2001, SECTION 19, AND AS AMENDED BY P.L.291-2001, SECTION 183, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. (a) The service charge for each delinquent title is

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        (1) two dollars and fifty cents ($2.50). during 2002 and 2003; and
        (2) two dollars ($2) during 2004 and thereafter.
    (b) Fifty cents ($0.50) of each service charge collected under subsection (a) during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-3-7; (03)AM100111.26. -->     SECTION 53. IC 9-29-3-7, AS AMENDED BY P.L.176-2001, SECTION 20, AND AS AMENDED BY P.L.291-2001, SECTION 184, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. (a) The service charge for each transfer of title is
        (1) one dollar and fifty cents ($1.50). during 2002 and 2003; and
        (2) one dollar ($1) during 2004 and thereafter.
    (b) Fifty cents ($0.50) of each service charge collected under subsection (a) during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-3-8; (03)AM100111.27. -->     SECTION 54. IC 9-29-3-8, AS AMENDED BY P.L.176-2001, SECTION 21, AND AS AMENDED BY P.L.291-2001, SECTION 185, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. (a) The service charge for each of the first two thousand (2,000) operator's licenses, including motorcycle operator's licenses, issued at a license branch each year is
        (1) two dollars ($2). during 2002 and 2003; and
        (2) one dollar and fifty cents ($1.50) during 2004 and thereafter.
    (b) The service charge for each additional operator's license or motorcycle operator's license issued at that license branch each year is
        (1) one dollar and fifty cents ($1.50). during 2002 and 2003; and
        (2) one dollar ($1) during 2004 and thereafter.
    (c) Fifty cents ($0.50) of each service charge collected under this section during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-3-9; (03)AM100111.28. -->     SECTION 55. IC 9-29-3-9, AS AMENDED BY P.L.176-2001, SECTION 22, AND AS AMENDED BY P.L.291-2001, SECTION 186, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) The service charge for each learner's permit, chauffeur's license, or public passenger chauffeur's license is
        (1) two dollars ($2). during 2002 and 2003; and
        (2) one dollar and fifty cents ($1.50) during 2004 and thereafter.
    (b) Fifty cents ($0.50) of each service charge collected under subsection (a) during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-3-10; (03)AM100111.29. -->     SECTION 56. IC 9-29-3-10, AS AMENDED BY P.L.176-2001, SECTION 23, AND AS AMENDED BY P.L.291-2001, SECTION 187, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 10. (a) The service charge for each temporary motorcycle learner's permit, motorcycle learner's permit, or motorcycle endorsement of an operator's license is
        (1) one dollar and fifty cents ($1.50). during 2002 and 2003; and
        (2) one dollar ($1) during 2004 and thereafter.
    (b) Fifty cents ($0.50) of each service charge collected under subsection (a) during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-3-11; (03)AM100111.30. -->     SECTION 57. IC 9-29-3-11, AS AMENDED BY P.L.176-2001, SECTION 24, AND AS AMENDED BY P.L.291-2001, SECTION 188, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY

1, 2003]: Sec. 11. (a) The service charge for each motorcycle operator endorsement of a chauffeur's license or a public passenger chauffeur's license is
        (1) one dollar ($1). during 2002 and 2003; and
        (2) fifty cents ($0.50) during 2004 and thereafter.
    (b) Fifty cents ($0.50) of each service charge collected under subsection (a) during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-3-12; (03)AM100111.31. -->     SECTION 58. IC 9-29-3-12, AS AMENDED BY P.L.176-2001, SECTION 25, AND AS AMENDED BY P.L.291-2001, SECTION 189, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 12. (a) The service charge for each replacement license or permit is
        (1) one dollar and fifty cents ($1.50). during 2002 and 2003; and
        (2) one dollar ($1) during 2004 and thereafter.
    (b) Fifty cents ($0.50) of each service charge collected under subsection (a) during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-3-14; (03)AM100111.32. -->     SECTION 59. IC 9-29-3-14, AS AMENDED BY P.L.176-2001, SECTION 27, AND AS AMENDED BY P.L.291-2001, SECTION 190, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14. (a) The service charge for an identification card issued under IC 9-24 is
        (1) fifty cents ($0.50) and one-half (1/2) of each fee collected as set forth in IC 9-29-9-15. plus fifty cents ($0.50) during 2002 and 2003; and
        (2) one-half (1/2) of each fee collected as set forth in IC 9-29-9-15 during 2004 and thereafter.
    (b) Fifty cents ($0.50) of each service charge collected under subsection (a) during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-3-18; (03)AM100111.33. -->     SECTION 60. IC 9-29-3-18, AS AMENDED BY P.L.176-2001, SECTION 28, AND AS AMENDED BY P.L.291-2001, SECTION 191, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 18. (a) The service charge for each duplicate registration card issued under IC 9-18 is
        (1) one dollar and fifty cents ($1.50). during 2002 and 2003; and
        (2) one dollar ($1) during 2004 and thereafter.
    (b) Fifty cents ($0.50) of each service charge collected under subsection (a) during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-15-1; (03)AM100111.34. -->     SECTION 61. IC 9-29-15-1, AS AMENDED BY P.L.176-2001, SECTION 30, AND AS AMENDED BY P.L.291-2001, SECTION 193, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. (a) The fee for a certificate of title or a duplicate certificate of title under IC 9-31-2 is
        (1) nine dollars and fifty cents ($9.50). during 2002 and 2003; and
        (2) nine dollars ($9) during 2004 and thereafter.
    (b) The fee is distributed as follows:
        (1) Seven dollars ($7) to the department of natural resources.
        (2) Two dollars and fifty cents ($2.50) to the bureau. during 2002 and 2003, and two dollars ($2) to the bureau during 2004 and thereafter.
    (c) Fifty cents ($0.50) of each fee distributed under subsection (b)(2)

during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-15-4; (03)AM100111.35. -->     SECTION 62. IC 9-29-15-4, AS AMENDED BY P.L.176-2001, SECTION 31, AND AS AMENDED BY P.L.291-2001, SECTION 182, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. (a) The fees to register a motorboat under IC 9-31-3 are as follows:
        (1) Twelve dollars and fifty cents ($12.50) for a Class 1 motorboat. during 2002 and 2003, and twelve dollars ($12) for a Class 1 motorboat during 2004 and thereafter.
        (2) Fourteen dollars and fifty cents ($14.50) for a Class 2, Class 3, or Class 4 motorboat. during 2002 and 2003, and fourteen dollars ($14) for a Class 2, Class 3, or Class 4 motorboat during 2004 and thereafter.
        (3) Seventeen dollars and fifty cents ($17.50) for a Class 5 motorboat. during 2002 and 2003, and seventeen dollars ($17) for a Class 5 motorboat during 2004 and thereafter.
        (4) Twenty-two dollars and fifty cents ($22.50) for a Class 6 or Class 7 motorboat. during 2002 and 2003, and twenty-two dollars ($22) for a Class 6 or Class 7 motorboat during 2004 and thereafter.
    (b) The department of natural resources receives:
        (1) twelve dollars ($12) for a Class 1 motorboat;
        (2) fourteen dollars ($14) for a Class 2, Class 3, or Class 4 motorboat;
        (3) seventeen dollars ($17) for a Class 5 motorboat; and
        (4) twenty-two dollars ($22) for a Class 6 or Class 7 motorboat;
of the fee collected under subsection (a).
    (c) Fifty cents ($0.50) of each fee collected under subsection (a) during 2002 and 2003 shall be deposited in the state motor vehicle technology fund established by IC 9-29-16-1.

SOURCE: IC 9-29-16-5; (03)AM100111.36. -->     SECTION 63. IC 9-29-16-5, AS ADDED BY P.L.176-2001, SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. The fund consists of the following:
        (1) Fifty cents ($0.50) of each service charge or fee collected by license branches during 2002 and 2003 under the following:
            (A) IC 9-29-3-4.
            (B) IC 9-29-3-6
            (C) IC 9-29-3-7
            (D) IC 9-29-3-8
            (E) IC 9-29-3-9
            (F) IC 9-29-3-10
            (G) IC 9-29-3-11
            (H) IC 9-29-3-12
            (I) IC 9-29-3-14
            (J) IC 9-29-3-18
            (K) IC 9-29-15-1
            (L) IC 9-29-15-4
        (2) Money deposited with the approval of the budget agency in the fund from any part of:
            (A) a service fee established under IC 9-29-3-19; or
            (B) an increase of a service fee increased under IC 9-29-3-19.
        (3) Money received from any other source, including appropriations.

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SOURCE: IC 12-15-1-16; (03)AM100111.49. -->     SECTION 64. IC 12-15-1-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 16. (a) Each:
        (1) school corporation; or
        (2) school corporation's employed, licensed, or qualified provider;
must enroll in a program to use federal funds under the Medicaid program (IC 12-15-1 et seq.) with the intent to share the costs of services that are reimbursable under the Medicaid program and that are provided to eligible children by the school corporation. However, a school corporation or a school corporation's employed, licensed, or qualified provider is not required to file any claims or participate in the program developed under this section.
    (b) The office of Medicaid policy and planning and the department of education may develop policies and adopt rules to administer the program developed under this section.
    (c) The federal reimbursement for paid claims that are submitted by the school corporations under the program required under this section must be distributed to the school corporations. Three percent (3%) of the federal reimbursement for paid claims that are submitted by the school corporation under the program required under this section must be:
        (1) distributed to the state general fund for administration of the program; and
        (2) used for consulting to encourage participation in the program.
The remainder of the federal reimbursement for services provided under this section must be distributed to the school corporation. The state shall retain the nonfederal share of the reimbursement for Medicaid services provided under this section.
    (d) The office of Medicaid policy and planning, with the approval of the budget agency and after consultation with the department of education, shall establish procedures for the timely distribution of federal reimbursement due to the school corporations. The distribution procedures may provide for offsetting reductions to distributions of state tuition support or other state funds to school corporations in the amount of the nonfederal reimbursements required to be retained by the state under subsection (c).

SOURCE: ; (03)AM100111.87. -->     SECTION 65. [EFFECTIVE UPON PASSAGE] The office of Medicaid policy and planning shall adopt emergency rules under IC 4-22-2-37.1 to achieve the reductions needed to avoid expenditures exceeding the Medicaid appropriation made by this act in the line item appropriation to the FAMILY AND SOCIAL SERVICES ADMINISTRATION, MEDICAID - CURRENT OBLIGATIONS. To the extent that reductions are made to optional Medicaid services as set forth in 42 U.S.C. 1396 et seq., the reductions may be accomplished on a pro-rata basis with each optional service being reduced by a proportionate amount. However, the reductions may not be made in a manner that results in the elimination of any optional Medicaid service.

SOURCE: ; (03)AM100111.88. -->     SECTION 66. [EFFECTIVE UPON PASSAGE] (a) As used in this SECTION, "office" refers to the office of Medicaid policy and planning established by IC 12-8-6-1.
    (b) As used in this SECTION, "optional Medicaid services" means those services that are set forth in 42 U.S.C. 1396 et seq. as optional and that are included in the state Medicaid plan.

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    (c) Before August 1, 2003, the office shall apply to the United States Department of Health and Human Services for approval to amend the state Medicaid plan to achieve the reductions in optional Medicaid services that are needed to comply with this act.
    (d) The office may not implement the amendment to the state Medicaid plan until the office files an affidavit with the governor attesting that the amendment applied for under this SECTION is in effect. The office shall file the affidavit under this subsection not later than three (3) days after the office is notified that the amendment is approved.
    (e) If the office receives approval under this SECTION from the United States Department of Health and Human Services to amend the state Medicaid plan and the governor receives the affidavit filed under subsection (d), the office shall implement the amendment not more than five (5) days after the governor receives the affidavit.
    (f) This SECTION expires December 31, 2007.

SOURCE: ; (03)AM100111.113. -->     SECTION 67. [EFFECTIVE JULY 1, 2003] (a) As used in this SECTION, "office" refers to the office of Medicaid policy and planning established by IC 12-8-6-1.
    (b) With the approval of the governor and the budget agency after review by the budget committee, the office may apply to the United States Department of Health and Human Services for an amendment to the Pharmacy Plus Section 115 Demonstration waiver for Phase II of the Indiana prescription drug program established under IC 12-10-16 that would amend the waiver to allow the program to provide services to an individual whose family income does not exceed one hundred eighty-five percent (185%) of the federal income poverty level for the same size family.
    (c) The office may not implement the amendment to the waiver until the office files an affidavit with the governor attesting that the amendment to the federal waiver applied for under this SECTION is in effect. The office shall file the affidavit under this subsection not later than five (5) days after the office is notified that the amendment to the waiver is approved.
    (d) If the office receives approval to amend the waiver as set forth in subsection (b) from the United States Department of Health and Human Services and the governor receives the affidavit filed under subsection (c), the office shall implement the amendment to the waiver not more than thirty (30) days after the governor receives the affidavit.
    (e) The office may adopt rules under IC 4-22-2 necessary to implement this SECTION.
    (f) This SECTION expires December 31, 2008.
    SECTION 68. [EFFECTIVE UPON PASSAGE] (a) This SECTION applies to any provider that is reimbursed by the office for goods or services provided to Medicaid recipients.
    (b) As used in this SECTION, "office" refers to the office of Medicaid policy and planning established by IC 12-8-6-1.
    (c) A provider described in subsection (a) shall report to the office all rebates, discounts, and other price concessions that the provider receives from a supplier of goods or services to the provider for goods or services provided to Medicaid recipients.
    (d) A provider described in subsection (a) shall submit the

information required under this SECTION to the office:
        (1) on a quarterly basis, beginning not later than thirty (30) days after the effective date of this SECTION; and
        (2) upon request by the office, within forty-five (45) days after the request from the office.
    (e) A provider described in subsection (a) shall submit the information required under subsection (d) in the format requested by the office.
    (f) The office shall use the information received under this SECTION to determine the appropriate reimbursement for the drug ingredient cost and professional services fee for drugs dispensed by a provider described in subsection (a) to Medicaid recipients.
    SECTION 69. [EFFECTIVE JULY 1, 2003] (a) As used in this SECTION, "office" refers to the office of Medicaid policy and planning established under IC 12-8-6-1.
    (b) The office may apply to the United States Department of Health and Human Services for a state Medicaid waiver that would require specified Medicaid recipients of a county to enroll in the Medicaid risk-based managed care program. The office may apply for a waiver under this SECTION for any county that the office determines that required Medicaid recipient participation in the risk-based managed care program would be feasible and cost effective.
    (c) The office may not implement a waiver applied for under this SECTION and that is approved by the United States Department of Health and Human Services until the office files an affidavit with the governor attesting that the federal waiver applied for under this SECTION is in effect. The office shall file the affidavit under this subsection not later than five (5) days after the office is notified that a waiver is approved.
    (d) If the office receives approval from the United States Department of Health and Human Services for a waiver applied for under this SECTION and the governor receives the affidavit filed under subsection (c), the office shall implement the waiver not more than sixty (60) days after the governor receives the affidavit.
    (e) The office may adopt rules under IC 4-22-2 necessary to implement this SECTION.
    (f) This SECTION expires December 31, 2008.
    SECTION 70. [EFFECTIVE UPON PASSAGE] (a) As used in this SECTION, "high Medicaid utilization nursing facility" means the smallest number of those nursing facilities with the greatest number of Medicaid patient days for which it is necessary to assess a lower quality assessment to satisfy the statistical test set forth in 42 CFR 433.68(e)(2)(ii).
    (b) As used in this SECTION, "nursing facility" means a health facility that is:
        (1) licensed under IC 16-28 as a comprehensive care facility; and
        (2) certified for participation in the federal Medicaid program under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.).
    (c) As used in this SECTION, "office" refers to the office of Medicaid policy and planning established by IC 12-8-6-1.

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    (d) As used in this SECTION, "total annual revenue" does not include revenue from Medicare services provided under Title XVIII of the federal Social Security Act (42 U.S.C. 1395 et seq.).
    (e) Effective August 1, 2003, the office shall collect a quality assessment from each nursing facility that has:
        (1) a Medicaid utilization rate of at least twenty-five percent (25%); and
        (2) at least seven hundred thousand dollars ($700,000) in annual Medicaid revenue, adjusted annually by the average annual percentage increase in Medicaid rates.
    (f) The money collected from the quality assessment may be used only to pay the state's share of the costs for Medicaid services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.) as follows:
        (1) Twenty percent (20%) as determined by the office.
        (2) Eighty percent (80%) to nursing facilities.
    (g) The office may not begin collection of the quality assessment set under this SECTION before the office calculates and begins paying enhanced reimbursement rates set forth in this SECTION.
    (h) If federal financial participation becomes unavailable to match money collected from the quality assessments for the purpose of enhancing reimbursement to nursing facilities for Medicaid services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.), the office shall cease collection of the quality assessment under the SECTION.
    (i) The office shall adopt rules under IC 4-22-2 to implement this act.
    (j) Not later than July 1, 2003, the office shall do the following:
        (1) Request the United States Department of Health and Human Services under 42 CFR 433.72 to approve waivers of 42 CFR 433.68(c) and 42 CFR 433.68(d) by demonstrating compliance with 42 CFR 433.68(e)(2)(ii).
        (2) Submit any state Medicaid plan amendments to the United States Department of Health and Human Services that are necessary to implement this SECTION.
    (k) After approval of the waivers and state Medicaid plan amendment applied for under subsection (j), the office shall implement this SECTION effective July 1, 2003.
    (l) The select joint commission on Medicaid oversight, established by IC 2-5-26-3, shall review the implementation of this SECTION. The office may not make any change to the reimbursement for nursing facilities unless the select joint commission on Medicaid oversight recommends the reimbursement change.
    (m) A nursing facility may not charge the nursing facility's residents for the amount of the quality assessment that the nursing facility pays under this SECTION.
    (n) This SECTION expires August 1, 2004.

SOURCE: IC 12-15-8.5-2; (03)SB0331.2.1. -->     SECTION 71. IC 12-15-8.5-2, AS ADDED BY P.L.178-2002, SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. (a) Subject to section 10 of this chapter, when the office, in accordance with 42 U.S.C. 1396p, determines that a Medicaid recipient who resides in a medical institution cannot reasonably be expected to be discharged from a medical institution and return home, the office may obtain a lien on the Medicaid recipient's

real property for the cost of all Medicaid expenditures made on behalf of the recipient.
     (b) The office shall conduct a look back (as described in 42 U.S.C. 1396p(c)) of a Medicaid recipient's property of at least three (3) years.
    (c) A lien obtained under this chapter is subordinate to the security interest of a financial institution that loans money to be used as operating capital for the operation of a farm, a business, or income producing real property.

SOURCE: IC 12-15-8.5-3; (03)SB0331.2.2. -->     SECTION 72. IC 12-15-8.5-3, AS ADDED BY P.L.178-2002, SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. The office may not obtain a lien under this chapter if any of the following persons lawfully reside in the home of the Medicaid recipient who resides in the medical institution:
        (1) The Medicaid recipient's spouse.
        (2) The Medicaid recipient's child who is:
            (A) less than twenty-one (21) years of age; or
            (B) disabled as defined by the federal Supplemental Security Income program.
        (3) The Medicaid recipient's sibling who has an ownership interest in the home and who has lived in the home continuously beginning at least twelve (12) months before the recipient was admitted to the medical institution.
        (4) The Medicaid recipient's parent.
        (5) An individual, other than a paid caregiver, who:
            (A) was continuously residing in the recipient's home for a period of at least two (2) years immediately prior to the date of the recipient's admission to the nursing facility; and
            (B) establishes to the satisfaction of the office that the person provided care to the recipient enabling the recipient to reside in the recipient's home rather than in a medical institution.

SOURCE: IC 12-15-8.5-6; (03)SB0331.2.3. -->     SECTION 73. IC 12-15-8.5-6, AS ADDED BY P.L.178-2002, SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. (a) Beginning on the date on which a notice of lien is recorded in the office of the county recorder under section 5 of this chapter, the notice of lien:
        (1) constitutes due notice of a lien against the Medicaid recipient's real property for any amount then recoverable and any amount that becomes recoverable under this article; and
        (2) gives a specific lien in favor of the office on the Medicaid recipient's interest in the real property.
    (b) The lien continues from the date of filing the lien until the lien:
        (1) is satisfied; or
        (2) is released. or
        (3) expires.

SOURCE: IC 12-15-8.5-7; (03)SB0331.2.4. -->     SECTION 74. IC 12-15-8.5-7, AS ADDED BY P.L.178-2002, SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. The office may bring proceedings in foreclosure on a lien arising under this chapter:
        (1) during the lifetime of the Medicaid recipient if the Medicaid recipient or a person acting on behalf of the Medicaid recipient sells the property; or
        (2) upon the death of the Medicaid recipient.
The lien automatically expires unless the office commences a

foreclosure action not later than nine (9) months seven (7) years after the Medicaid recipient's death.

SOURCE: IC 12-15-8.5-8; (03)SB0331.2.5. -->     SECTION 75. IC 12-15-8.5-8, AS ADDED BY P.L.178-2002, SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. (a) The office may not enforce a lien under this chapter if the Medicaid recipient is survived by any of the following:
        (1) The recipient's spouse.
        (2) The recipient's child who is:
            (A) less than twenty-one (21) years of age; or
            (B) disabled as defined by the federal Supplemental Security Income program.
        (3) The recipient's parent.
    (b) The office may not enforce a lien against a Medicaid recipient's home under this chapter as long as any of the following individuals reside in the home:
        (1) The recipient's child of any age if the child:
            (A) resided in the home for at least twenty-four (24) months before the Medicaid recipient was admitted to the medical institution;
            (B) provided care to the Medicaid recipient that delayed the Medicaid recipient's admission to the medical institution; and
            (C) has resided in the home on a continuous basis since the date of the individual's admission to the medical institution.
        (2) The Medicaid recipient's sibling who has an ownership interest in the home and who has lived in the home continuously beginning at least twelve (12) months before the Medicaid recipient was admitted to the medical institution.

SOURCE: IC 12-15-8.5-9; (03)SB0331.2.6. -->     SECTION 76. IC 12-15-8.5-9, AS ADDED BY P.L.178-2002, SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) The office shall release a lien imposed under this chapter within ten (10) business days after the county office of family and children receives notice that the Medicaid recipient:
        (1) is no longer living in the medical institution; and
        (2) is living in the has returned home to live.
    (b) The county recorder shall waive the filing fee for the filing of a release made under this section.
    (c) If the property subject to the lien is sold, the office shall release its lien at the closing, and the lien shall attach to the net proceeds of the sale.

SOURCE: IC 12-15-8.5-12; (03)SB0331.2.7. -->     SECTION 77. IC 12-15-8.5-12 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 12. (a) A lien under this chapter is void if both of the following occur:
        (1) The owner of property subject to a lien under this chapter or any person or corporation having an interest in the property, including a mortgagee or a lienholder, provides written notice to the office to file an action to foreclose the lien.
        (2) The office fails to file an action to foreclose the lien in the county where the property is located not later than thirty (30) days after receiving the notice.
However, this section does not prevent the claim from being collected as other claims are collected by law.
    (b) A person who gives notice under subsection (a)(1) by registered or certified mail to the office at the address given in the

recorded statement and notice of intention to hold a lien may file an affidavit of service of the notice to file an action to foreclose the lien with the recorder of the county in which the property is located. The affidavit must state the following:
        (1) The facts of the notice.
        (2) That more than thirty (30) days have passed since the notice was received by the office.
        (3) That no action for foreclosure of the lien is pending.
        (4) That no unsatisfied judgment has been rendered on the lien.
    (c) The recorder shall:
        (1) record the affidavit of service in the miscellaneous record book of the recorder's office; and
        (2) certify on the face of the record any lien that is fully released.
When the recorder records the affidavit and certifies the record under this subsection, the real estate described in the lien is released from the lien.

SOURCE: IC 12-15-9-0.5; (03)SB0331.2.8. -->     SECTION 78. IC 12-15-9-0.5, AS AMENDED BY P.L.178-2002, SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 0.5. (a) As used in this chapter, "estate" includes:
        (1) all real and personal property and other assets included within an individual's probate estate;
        (2) any interest in real property owned by the individual at the time of death that was conveyed to the individual's survivor through joint tenancy with right of survivorship, if the joint tenancy was created after June 30, 2002; and
        (3) any real or personal property conveyed through a nonprobate transfer.
    (b) As used in this chapter, "nonprobate transfer" means a valid transfer, effective at death, by a transferor:
        (1) whose last domicile was in Indiana; and
        (2) who immediately before death had the power, acting alone, to prevent transfer of the property by revocation or withdrawal and:
            (A) use the property for the benefit of the transferor; or
            (B) apply the property to discharge claims against the transferor's probate estate.
The term does not include transfer of a survivorship interest in a tenancy by the entireties real estate transfer of a life insurance policy or annuity, or payment of the death proceeds of a life insurance policy. or annuity.

SOURCE: IC 12-15-9-0.7; (03)SB0331.2.9. -->     SECTION 79. IC 12-15-9-0.7, AS ADDED BY P.L.178-2002, SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 0.7. (a) This section applies only to real property owned by the individual at the time of death that was conveyed to the individual's survivor through joint tenancy with right of survivorship.
    (b) The office may enforce its claim against any property described in subsection (a) only to the extent that the value of the recipient's combined total interest in all real property described in subsection (a) subject to the claim exceeds one hundred twenty-five thousand dollars ($125,000). seventy-five thousand dollars ($75,000).
    (c) This section expires January 1, 2008.

SOURCE: IC 12-15-8.5-10; IC 12-15-8.5-11.
; (03)SB0331.2.10. -->     SECTION 80. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2003]: IC 12-15-8.5-10; IC 12-15-8.5-11.

SOURCE: IC 12-15-8-8; (03)AM100111.211. -->     SECTION 81. IC 12-15-8-8 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. The office shall pay attorney's fees in the amount of one (1) of the following:
        (1) Twenty-five Seven and five-tenths percent (25%) (7.5%) of the office's recovery under the lien if the claim was collected without initiating legal proceedings.
        (2) Thirty-three and one-third Ten percent (33 1/3%) (10%) of the office's recovery under the lien if the claim was collected by initiating legal proceedings.

SOURCE: IC 12-15-37-7; (03)AM100111.235. -->     SECTION 82. IC 12-15-37-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. The office and the state department of health may collaborate with the American Heart Association to reduce the cost of stroke treatment and improve the outcome of stroke patients in the state. The collaboration may include the following:
        (1) The development and implementation of a comprehensive statewide public education program on stroke prevention that is targeted at high-risk populations and at geographical areas that have a high incidence of stroke.
        (2) The recommendation and dissemination of guidelines on the treatment of stroke patients, including emergency stroke care.
        (3) The development of a program that would ensure that the public and health care providers are informed concerning the most effective stroke prevention strategies.
        (4) The dissemination of information concerning public and private grant opportunities available for hospitals and providers of emergency medical services for the purposes of improving stroke patient care.
    SECTION 83. IC 12-15-14.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]:
     Chapter 14.5. Supplemental Payments to Ambulance Transportation Service Providers
    Sec. 1. This chapter applies to a Medicaid provider that receives reimbursement from the office during a state fiscal year for providing ambulance transportation services.
    Sec. 2. (a) Subject to section 6 of this chapter, for each state fiscal year beginning July 1, 2003, an ambulance transportation service provider may receive reimbursement under this chapter that is in addition to the following reimbursement:
        (1) Reimbursement under this article.
        (2) The state plan for medical assistance.
        (3) Rules and policies adopted by the office to provide ambulance transportation services.
    (b) Any additional reimbursement allowed under subsection (a) is subject to the approval by the United States Department of Health and Human Services to an amendment of the state Medicaid plan.
    Sec. 3. The office shall:
        (1) develop a schedule for payments made under this chapter; and
        (2) make a payment under this chapter in accordance with the schedule.
    Sec. 4. (a) Except as provided in subsection (b), the office shall calculate and make a payment under this chapter in an amount

equal to the amount calculated in STEP SIX of the following formula:
        STEP ONE: The office shall identify a Medicaid provider described in section 1 of this chapter that received reimbursement for ambulance transportation services during a time frame determined by the office.
        STEP TWO: For each Medicaid provider described in STEP ONE, the office shall identify the ambulance transportation services for which the Medicaid provider was reimbursed.
        STEP THREE: For each Medicaid provider described in STEP ONE, the office shall calculate the reimbursement paid to the Medicaid provider for the ambulance transportation services identified under STEP TWO.
        STEP FOUR: For each Medicaid provider described in STEP ONE, the office shall calculate the Medicaid provider's usual and customary charges for each of the Medicaid provider's services identified under STEP TWO.
        STEP FIVE: For each Medicaid provider described in STEP ONE, the office shall subtract an amount equal to the reimbursement calculation for each of the ambulance transportation services under STEP THREE from an amount equal to the amount calculated for each of the ambulance transportation services under STEP FOUR.
        STEP SIX: For each Medicaid provider described in STEP ONE, the office shall calculate the sum of each of the amounts calculated for each ambulance transportation services under STEP FIVE.
    (b) For any Medicaid provider described in STEP ONE of subsection (a), the office may decline to base the calculations under STEP FOUR of subsection (a) on the Medicaid provider's usual and customary charges if the office determines a formula or criteria that will increase the amount calculated for the provider under STEP SIX of subsection (a).
    Sec. 5. The office shall establish a methodology for calculating a provider's usual and customary charges for purpose of STEP FOUR of the formula in section 4(a) of this chapter.
    Sec. 6. (a) A Medicaid provider that receives reimbursement from the office during a state fiscal year for ambulance transportation services is eligible for payment under this chapter only if an intergovernmental transfer under this section is made by the provider or on behalf of the provider to the office.
    (b) The amount of the intergovernmental transfer under subsection (a) must be an amount of at least eighty-five percent (85%) of the amount calculated for the provider under STEP SIX of section 4 of this chapter.
    Sec. 7. A Medicaid provider that receives reimbursement from the office during a state fiscal year for ambulance transportation services may appeal under IC 4-21.5 the amount determined by the office to be paid to the Medicaid provider under STEP SIX of section 4 of this chapter.
    Sec. 8. The office shall determine the services to be considered ambulance transportation services under this chapter. The services must at least include the following:
        (1) Air.

---

        (2) Basic life support services.
        (3) Advanced life support services.
    SECTION 84. IC 6-1.1-18-3, AS AMENDED BY P.L.90-2002, SECTION 160, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) Except as provided in subsection (b), the sum of all tax rates for all political subdivisions imposed on tangible property within a political subdivision may not exceed:
        (1) forty-one and sixty-seven hundredths cents ($0.4167) on each one hundred dollars ($100) of assessed valuation in territory outside the corporate limits of a city or town; or
        (2) sixty-six and sixty-seven hundredths cents ($0.6667) on each one hundred dollars ($100) of assessed valuation in territory inside the corporate limits of a city or town.
    (b) The proper officers of a political subdivision shall fix tax rates which are sufficient to provide funds for the purposes itemized in this subsection. The portion of a tax rate fixed by a political subdivision shall not be considered in computing the tax rate limits prescribed in subsection (a) if that portion is to be used for one (1) of the following purposes:
        (1) To pay the principal or interest on a funding, refunding, or judgment funding obligation of the political subdivision.
        (2) To pay the principal or interest on an outstanding obligation issued by the political subdivision if notice of the sale of the obligation was published before March 9, 1937.
        (3) To pay the principal or interest upon:
            (A) an obligation issued by the political subdivision to meet an emergency which results from a flood, fire, pestilence, war, or any other major disaster; or
            (B) a note issued under IC 36-2-6-18, IC 36-3-4-22, IC 36-4-6-20, or IC 36-5-2-11 to enable a city, town, or county to acquire necessary equipment or facilities for municipal or county government.
        (4) To pay the principal or interest upon an obligation issued in the manner provided in IC 6-1.1-20-3 (before its repeal) or IC 6-1.1-20-3.1 through IC 6-1.1-20-3.2.
        (5) To pay a judgment rendered against the political subdivision.
        (6) To meet the requirements of the family and children's fund for child services (as defined in IC 12-19-7-1).
        (7) To meet the requirements of the county hospital care for the indigent fund.
         (8) To meet the requirements of the children's psychiatric residential treatment services fund for children's psychiatric residential treatment services (as defined in IC 12-19-7.5-1).
    (c) Except as otherwise provided in IC 6-1.1-19 or IC 6-1.1-18.5, a county board of tax adjustment, a county auditor, or the department of local government finance may review the portion of a tax rate described in subsection (b) only to determine if it exceeds the portion actually needed to provide for one (1) of the purposes itemized in that subsection.

SOURCE: IC 6-1.1-18.5-9.7; (03)PD4512.2. -->     SECTION 85. IC 6-1.1-18.5-9.7, AS AMENDED BY P.L.273-1999, SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9.7. (a) The ad valorem property tax levy limits imposed by section 3 of this chapter do not apply to ad valorem

property taxes imposed under any of the following:
        (1) IC 12-16, except IC 12-16-1.
        (2) IC 12-19-5.
        (3) IC 12-19-7.
        (4) IC 12-19-7.5.
        (5) IC 12-20-24.
    (b) For purposes of computing the ad valorem property tax levy limits imposed under section 3 of this chapter, a county's or township's ad valorem property tax levy for a particular calendar year does not include that part of the levy imposed under the citations listed in subsection (a).
    (c) Section 8(b) of this chapter does not apply to bonded indebtedness that will be repaid through property taxes imposed under IC 12-19.

SOURCE: IC 6-1.1-18.6-1.1; (03)PD4512.3. -->     SECTION 86. IC 6-1.1-18.6-1.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1.1. As used in this chapter:
         (1) "county family and children property tax levy for an ensuing calendar year" means the total property taxes imposed by a county under the authority of IC 12-19-7 that are to be collected and deposited in the family and children's fund during the ensuing calendar year; and
        (2) "county children's psychiatric residential treatment services property tax levy for an ensuing calendar year" means the total property taxes imposed by a county under the authority of IC 12-19-7.5 that are to be collected and deposited in the county children's psychiatric residential treatment services fund during the ensuing calendar year.

SOURCE: IC 6-1.1-18.6-2.2; (03)PD4512.4. -->     SECTION 87. IC 6-1.1-18.6-2.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2.2. A county may not impose a county children's psychiatric residential treatment services property tax levy for an ensuing calendar year that exceeds the product of:
        (1) the assessed value growth quotient determined under IC 6-1.1-18.5-2 for the county for the ensuing calendar year; multiplied by
        (2) the maximum county children's psychiatric residential treatment services property tax levy that the county could have imposed for the calendar year immediately preceding the ensuing calendar year under the limitations set by this section.

SOURCE: IC 6-1.1-18.6-4; (03)PD4512.5. -->     SECTION 88. IC 6-1.1-18.6-4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. (a) A county may increase its maximum county children's psychiatric residential treatment services property tax levy for an ensuing calendar year if, in the judgment of the county fiscal body, the increase is necessary to pay the obligations that will be incurred by the county for children's psychiatric residential treatment services during the ensuing calendar year. The maximum increase that the county fiscal body may recommend for a county may not exceed:
        (1) the county's expected obligations under IC 12-19-7.5 for the ensuing calendar year; minus
        (2) the portion of the county children's psychiatric residential

treatment services property tax levy for the year preceding the ensuing calendar year that was available to pay obligations under IC 12-19-7.5.
    (b) In making its recommendation, the county fiscal body shall consider the county's estimate of expected obligations under IC 12-19-7.5 but may make adjustments to the county's estimate.
    (c) The decision of the county fiscal body under this section is a final determination that may not be appealed.

SOURCE: IC 6-1.1-29-9; (03)PD4512.6. -->     SECTION 89. IC 6-1.1-29-9, AS AMENDED BY P.L.273-1999, SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) A county council may adopt an ordinance to abolish the county board of tax adjustment. This ordinance must be adopted by July 1 and may not be rescinded in the year it is adopted. Notwithstanding IC 6-1.1-17, IC 6-1.1-18, IC 6-1.1-19, IC 12-19-7, IC 12-19-7.5, IC 21-2-14, IC 36-8-6, IC 36-8-7, IC 36-8-7.5, IC 36-8-11, IC 36-9-3, IC 36-9-4, and IC 36-9-13, if such an ordinance is adopted, this section governs the treatment of tax rates, tax levies, and budgets that would otherwise be reviewed by a county board of tax adjustment under IC 6-1.1-17.
    (b) The time requirements set forth in IC 6-1.1-17 govern all filings and notices.
    (c) A tax rate, tax levy, or budget that otherwise would be reviewed by the county board of tax adjustment is considered and must be treated for all purposes as if the county board of tax adjustment approved the tax rate, tax levy, or budget. This includes the notice of tax rates that is required under IC 6-1.1-17-12.

SOURCE: IC 12-19-5-1; (03)PD4512.7. -->     SECTION 90. IC 12-19-5-1, AS AMENDED BY P.L.273-1999, SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. (a) In addition to the other method of welfare financing provided by this article, the county director may appeal for the right to borrow money on a short term basis to fund:
         (1) child services under IC 12-19-7-1; or
         (2) children's psychiatric residential treatment services under IC 12-19-7.5; or
        (3) other welfare services in the county;
if the county director determines that the family and children's fund or the children's psychiatric residential treatment services fund will be exhausted before the end of a fiscal year.
    (b) In an appeal under this section, the county director must show the following:
        (1) That the amount of money in the family and children's fund or the children's psychiatric residential treatment services fund will be insufficient to fund the appropriate services within the county under this article.
        (2) The amount of money that the county director estimates will be needed to fund that deficit.
    (c) The county director shall immediately transmit an appeal under this section to the director.