Introduced Version
HOUSE BILL No. 1312
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 3; IC 4; IC 5; IC 6; IC 8; IC 9; IC 10; IC 12;
IC 13; IC 14; IC 15; IC 16; IC 20; IC 21; IC 22; IC 23; IC 31; IC 32;
IC 36.
Synopsis:
Eliminates the authority of the state to impose a property
tax. Eliminates the authority of a political subdivision to impose a
property tax (except for police and fire services). Authorizes political
subdivisions to impose a police and fire service fee in lieu of a property
tax. Authorizes a county to impose a local government income tax to
provide revenues for the political subdivisions (except school
corporations) in the county. Transfers financial responsibility for
certain welfare programs from local government to the state. Allows a
school corporation to impose a local income tax for education of not
more than 1.2%. Provides a state tuition support formula equal to the
difference between the school corporation's expenditure limit and the
amount that the school corporation can raise from a local income tax
for education of 1.2%. Decreases the sales tax and provides an
additional distribution to political subdivisions in the amount of 20%
of the local government income tax imposed for the political
subdivision. Establishes the state emergency reserve fund and transfers
money from the state general fund to the state emergency reserve fund.
Makes conforming changes to convert the school budget year from a
calendar year to a school year. Makes related changes. Makes an
appropriation.
Effective: Upon passage; July 1, 2004; January 1, 2005.
Buck, Thomas
January 15, 2004, read first time and referred to Committee on Ways and Means.
Introduced
Second Regular Session 113th General Assembly (2004)
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,
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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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
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this style type reconciles conflicts
between statutes enacted by the 2003 Regular Session of the General Assembly.
HOUSE BILL No. 1312
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 3-5-3-2; (04)IN1312.1.1. -->
SECTION 1. IC 3-5-3-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 2. The legislative body of a
county may establish a county election and registration fund for the
purpose of paying for all the expenses specified in section 1 of this
chapter. The legislative body may annually levy a tax on all taxable
property in the county, in the manner that other taxes are levied,
sufficient to meet the average annual expenses specified in section 1 of
this chapter. The county shall deposit the revenues from this tax into
the fund.
SOURCE: IC 3-11-6-1; (04)IN1312.1.2. -->
SECTION 2. IC 3-11-6-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 1. The legislative body of a
county may establish a cumulative fund under IC 6-1.1-41 to provide
funds for the purchase of voting machines, ballot card voting systems,
or electronic voting systems.
SOURCE: IC 3-11-6-9; (04)IN1312.1.3. -->
SECTION 3. IC 3-11-6-9 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 9.
A county may transfer
money from its general fund to provide for a cumulative fund.
a
county may levy a tax in compliance with IC 6-1.1-41 on all taxable
property within the county. The tax may not exceed one and
sixty-seven hundredths cents ($0.0167) on each one hundred dollars
($100) of assessed valuation.
SOURCE: IC 4-4-8-9; (04)IN1312.1.4. -->
SECTION 4. IC 4-4-8-9 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 9. Any qualified entity
receiving a loan under this chapter may levy an annual tax on personal
and real property located within its geographical limits appropriate
money for industrial development purposes in addition to any other tax
authorized by statute to be levied for such purposes, at such rate as will
produce sufficient revenue to pay the annual installment and interest on
any loan made under this chapter. Such a tax appropriation may be in
addition to the maximum annual rates prescribed by IC 6-1.1-18,
IC 6-1.1-18.5, IC 6-1.1-19, and other statutes. IC 21-10 or IC 36-1.3
(as appropriate).
SOURCE: IC 4-9.1-1-8; (04)IN1312.1.5. -->
SECTION 5. IC 4-9.1-1-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 8. For the purpose
of meeting casual deficits in the state revenue, the board may negotiate
such loans as may be necessary to meet the demands of the state. The
loan may not be made for a longer period than four (4) years after the
end of the fiscal year in which the loan is made. To evidence the loan,
the board may execute certificates of indebtedness or promissory notes,
which certificates or notes must recite that they are issued to meet
casual deficits in the state revenue.
If there are not sufficient funds coming into the general fund of the
state to pay the certificates or notes when due, the board may,
notwithstanding IC 6-1.1-18-2, levy a tax on all the taxable property of
the state, sufficient to pay the amount of the indebtedness.
SOURCE: IC 4-10-13-5; (04)IN1312.1.6. -->
SECTION 6. IC 4-10-13-5, AS AMENDED BY P.L.90-2002,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 5. (a) The department of local government
finance shall prepare and publish each year the following report which
must contain the following property tax data by counties or by
appropriate taxing jurisdictions:
(1) The tax rates of the various taxing jurisdictions.
(2) An abstract of taxable real property including a recital of the
number of parcels and the gross assessed valuation of nonfarm
residential property including improvements thereon, the number
of parcels and the gross assessed valuation of commercial and
industrial real property, including improvements thereon, the
number of parcels and the gross assessed valuation of unimproved
real property, the number of parcels and the gross assessed
valuation of agricultural acreage including improvements thereon,
and the total amount of the gross assessed valuation of real estate
and the total assessed valuation of improvements thereon. The
abstract shall also include a recital of the total amount of net
valuation of real property.
(3) The total assessed valuation of personal property belonging to
steam and electric railways and to public utilities.
(4) The total number of taxpayers and the total assessed valuation
of household goods and personal effects, excluding boats subject
to the boat excise tax under IC 6-6-11.
(5) The total number of units assessed and the assessed valuation
of each of the following items of personal property:
(A) Privately owned, noncommercial passenger cars.
(B) Commercial passenger cars.
(C) Trucks and tractors.
(D) Motorcycles.
(E) Buses.
(F) Mobile homes.
(G) Boats.
(H) Airplanes.
(I) Farm machinery.
(J) Livestock.
(K) Crops.
(6) The total number of taxpayers and the total valuation of
inventories and other personal property belonging to retail
establishments, wholesale establishments, manufacturing
establishments, and commercial establishments.
(7) The names of the political subdivisions that have elected to
fund police and fire services under IC 36-8.5.
(b) The department of local government finance is hereby
authorized to prescribe and promulgate the forms as are necessary for
the obtaining of such information from local assessing officials. The
local assessing officials are directed to comply with this section.
SOURCE: IC 4-31-5-6; (04)IN1312.1.7. -->
SECTION 7. IC 4-31-5-6 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 6. (a) The commission may not
issue a recognized meeting permit unless the applicant has filed with
the commission:
(1) a financial statement prepared and certified by a certified
public accountant in accordance with sound accounting practices,
showing the net worth of the applicant;
(2) a statement from the department of state revenue and the
treasurer of state that there are no pari-mutuel taxes or other
obligations owed by the applicant to the state or any of its
departments or agencies;
(3) a statement from the county treasurer of the county in which
the applicant proposes to conduct horse racing meetings that there
are no real or personal property taxes or taxes imposed under
IC 6-3.5 owed by any of the principals seeking the permit; and
(4) a statement of obligations that are owed or being contested,
including salaries, purses, entry fees, laboratory fees, and debts
owed to vendors and suppliers.
(b) In addition to the requirements of subsection (a), the commission
may not issue a recognized meeting permit for a recognized meeting to
occur in a county unless IC 4-31-4 has been satisfied.
SOURCE: IC 4-31-9-8; (04)IN1312.1.8. -->
SECTION 8. IC 4-31-9-8 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 8. No tax or fee, except as provided
in this article, shall be assessed or collected from a permit holder by a
political subdivision having the power to assess or collect a tax or fee.
This section does not apply to fees under IC 36-8.5 or real or personal
property taxes imposed by a local taxing unit.
SOURCE: IC 4-33-6.5-15; (04)IN1312.1.9. -->
SECTION 9. IC 4-33-6.5-15, AS ADDED BY P.L.92-2003,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 15. A riverboat operated under an operating agent
contract under this article is not exempt from property taxes imposed
under IC 6-1.1 or taxes imposed under IC 6-3.5.
SOURCE: IC 4-33-13-6; (04)IN1312.1.10. -->
SECTION 10. IC 4-33-13-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 6. (a) Money paid
to a unit of local government under this chapter:
(1) must be paid to the fiscal officer of the unit and may be
deposited in the unit's general fund or riverboat fund established
under IC 36-1-8-9, or both; and
(2) may not be used to reduce the unit's maximum or actual levy
under IC 6-1.1-18.5; and
(3) (2) may be used for any legal or corporate purpose of the unit,
including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4.
(b) This chapter does not prohibit the city or county designated as
the home dock of the riverboat from entering into agreements with
other units of local government in Indiana or in other states to share the
city's or county's part of the tax revenue received under this chapter.
SOURCE: IC 5-1-7-2; (04)IN1312.1.11. -->
SECTION 11. IC 5-1-7-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 2. The contract entered into
by the board of commissioners of any county and any such bondholder
shall be signed by the parties to such contract, shall be attested on
behalf of the county by the county auditor, and shall stipulate and agree
that the board of commissioners of the county will pay all interest on
such matured bond to the date of the maturity thereof, and that a new
bond (referred to in this chapter as a redemption bond) in the same
amount as the matured bond, will be issued to pay and retire such
matured bond, and that such redemption bond will be and continue to
be a valid and binding obligation of the county and that during the
period fixed in the contract not exceeding ten (10) years the board of
commissioners will pay annually to the owner of such redemption
bond, one-tenth (1/10) of the principal amount of such redemption
bond and, in addition thereto, will pay semiannually all interest which
shall have accrued thereon to the date when such payment is to be
made. The date on which such partial payments of the principal of such
bond will be made shall be fixed and prescribed in such contract and
may be on June 1 or December 1 of the year next succeeding the year
in which such contract is executed and signed and June 1 or December
1 of each and every year thereafter until paid. The interest accrued on
such bond shall be paid semiannually on June 1 and December 1,
beginning on the same date as the first partial payment on such bond.
The board of commissioners shall further agree to levy a tax on the
taxable property of such county in annually appropriate an amount
sufficient to make the payments on such redemption bonds as they fall
due, together with all interest which shall have accrued thereon. Any
bondholder who elects to avail himself of the provisions of this chapter
shall agree that in consideration of the privilege hereby afforded he will
not maintain or attempt to maintain a suit for the collection or the
enforcement of the lien of any such bond, other than in accordance with
the remedies afforded by the provisions of this chapter. The form of the
contract herein contemplated shall be prescribed by the state board of
accounts with the approval of the attorney general. At the time when
the contract is executed and the redemption bond is issued, the matured
bond shall be surrendered to the county auditor and shall be canceled
by writing across the face of the matured bond the words "Canceled by
issuing to ______ a redemption bond in the same principal sum as this
bond, due and payable on the ______ day of ______, 19____.
20____.".
SOURCE: IC 5-1-13-3; (04)IN1312.1.12. -->
SECTION 12. IC 5-1-13-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 3.
Notwithstanding any other law, income from the investment of
proceeds of the sale of bonds issued by any political subdivision that
are payable from property taxes
or other money shall be applied to the
improvement or the public purpose for which the bonds were issued or
shall be used to pay interest on the bonds and in no event may such
income be used for any other purpose except as provided in section 2
of this chapter.
SOURCE: IC 5-1-14-7; (04)IN1312.1.13. -->
SECTION 13. IC 5-1-14-7, AS AMENDED BY P.L.170-2002,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 7. (a) This section applies to:
(1) each county having a population of more than one hundred
seventy thousand (170,000) but less than one hundred eighty
thousand (180,000); and
(2) each second class city located in such a county.
(b) As used in this section, "stadium" means a structure used for
athletic, recreational, cultural, and community events.
(c) Notwithstanding any other law, a stadium constitutes a:
(1) government building under IC 36-9-13;
(2) structure under IC 36-1-10;
(3) park purpose under IC 36-10-1;
(4) park improvement under IC 36-10-4; and
(5) redevelopment project or purpose under IC 36-7-14.
(d) Notwithstanding any other law, A legislative body of a city may
levy a tax in the park district established under IC 36-10-4 appropriate
money to pay lease rentals to a lessor of a stadium under IC 36-1-10 or
IC 36-9-13.
SOURCE: IC 5-1-16-40; (04)IN1312.1.14. -->
SECTION 14. IC 5-1-16-40 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 40. (a) Any lease
executed under section 38 or 39 of this chapter may provide for the
payment of the lease rental in any one (1) of the following ways as
established in the lease:
(1) Entirely from
the levy of taxes
distributed to the hospital by
a political subdivision.
(2) Entirely from the net revenues of the hospital of which the
leased building is a part.
(3) In part from
t
he levy of taxes and in part from the net revenues
amounts described in
subdivision subdivisions (1) and (2).
(b) If any lease provides for the payment of lease rental in whole or
in part from net revenues of the hospital, the lease may further provide
that the county and the board of trustees or board of managers of the
hospital set aside and hold as a reserve for such purpose excess net
revenues over and above the amount required to pay lease rental
payable from net revenues. The reserve fund may not exceed an
amount equal to the amount of lease rental payable from net revenues
for two (2) years. The reserve fund shall be held and used only for the
purpose of paying lease rental payable from net revenues, if such net
revenues at any time are insufficient to pay lease rentals. The amount
in the reserve fund may be invested in the manner and to the extent
provided in the lease. All interest or other income from the investment
shall become part of the reserve fund unless the reserve fund contains
the maximum amount required to be in the reserve fund. The following
occur if the reserve fund contains the maximum amount required to be
in the reserve fund:
(1) If any of the lease rental is payable from taxes, the interest or
other income shall be transferred to the fund to be used for the
payment of the lease rental provided to be paid from taxes.
(2) If none of the lease rental is payable from taxes, the interest or
other income shall become a part of the reserve fund.
SOURCE: IC 5-10.3-11-4; (04)IN1312.1.15. -->
SECTION 15. IC 5-10.3-11-4, AS AMENDED BY P.L.38-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 4. (a) Monies from the pension relief fund
shall be paid annually by the state board under the procedures specified
in this section.
(b) Before April 1 of each year, each unit of local government must
certify to the state board:
(1) the amount of payments made during the preceding year for
benefits under its pension funds covered by this chapter, referred
to in this section as "pension payments";
(2) the data determined necessary by the state board to perform an
actuarial valuation of the unit's pension funds covered by this
chapter; and
(3) the names required to prepare the list specified in subsection
(c).
A unit is ineligible to receive a distribution under this section if it does
not supply before April 1 of each year (i) the complete information
required by this subsection; or (ii) a substantial amount of the
information required if it is accompanied by an affidavit of the chief
executive officer of the unit detailing the steps which have been taken
to obtain the information and the reasons the complete information has
not been obtained. This subsection supersedes the reporting
requirement of IC 5-10-1.5 as it applies to pension funds covered by
this chapter.
(c) Before July 1 of each year, the state board shall prepare a list of
all police officers and firefighters, active, retired, and deceased if their
beneficiaries are eligible for benefits, who are members of a police or
fire pension fund that was established before May 1, 1977. The list may
not include police officers, firefighters, or their beneficiaries for whom
no future benefits will be paid. The state board shall then compute the
present value of the accrued liability to provide the pension and other
benefits to each person on the list.
(d) Before July 1 of each year, the state board shall determine the
total pension payments made by all units of local government for the
preceding year and shall estimate the total pension payments to be
made to all units in the calendar year in which the July 1 occurs and in
the following calendar year.
(e) Each calendar year, the state board shall, with respect to the
following calendar year, determine for each unit of local government
an amount (Dy). The state board shall, in two (2) equal installments
before July 1 and before October 2, distribute to each eligible unit of
local government the amount (Dy) determined for the unit with respect
to the following calendar year. The amount (Dy) shall be determined by
the following STEPS:
STEP ONE. Subtract the total distribution made to units (Dy-1) in the
preceding calendar year from the total pension payments made by units
(Py-1) in the preceding calendar year.
STEP TWO. Multiply the STEP ONE difference by (1+k) as (k) is
determined in STEP THREE.
STEP THREE. Determine the annual percentage increase (k) in the
STEP ONE difference which will allow the present value of all future
estimated distributions, as computed under STEP FOUR, from the
pension relief fund to equal the "k portion" of the pension relief fund
balance plus the present value of all future receipts to the "k portion"
of the fund, but which will not allow the "k portion" of the pension
relief fund balance to be negative. These present values shall be
determined based on the current long term actuarial assumptions. The
"k portion" of the pension relief fund balance is the total pension relief
fund balance less the "m portion" of the fund. The percentage increase
(k) shall be computed to the nearest one thousandth of one percent
(.001%). All years, after the year 2000, in which the receipts to the
fund plus the net pension payments by all the units equal or exceed the
total pension payments shall be ignored for the purposes of these
calculations.
STEP FOUR. Subtract the STEP TWO product from the estimated
total pension payments to be made by all units (Py) in the calendar year
for which the distribution is to be made.
STEP FIVE. Multiply the STEP FOUR difference by one-half (1/2)
of the sum of two quotients, (1) the quotient of the unit's number of
police officers and firefighters on December 31 of the year before the
year of the distribution who are members of a pension fund established
before May 1, 1977, who are retired, and who are deceased if their
beneficiaries are eligible for benefits (unit) divided by the total number
of these police officers and firefighters (total units) on December 31 of
the year before the year of the distribution in all units plus (2) the
quotient of the unit's pension payments (payments) divided by the total
pension payments (total payments) by all units.
Expressed mathematically:
Dy = (Py - ((Py-1 - Dy-1) x (1 + k))) x 1/2
(unit/(total unit) + payment/(total payment)).
(f) If in any year the distribution made to a unit of local government
is larger than the unit's pension payments to its retirees and their
beneficiaries for that year, the excess may not be distributed to the unit
but must be transferred to the 1977 police officers' and firefighters'
pension and disability fund and the unit's contributions to that fund
shall be reduced for that year by the amount of the transfer.
(g) If in any year after 2000, the STEP FOUR difference under
subsection (e) is smaller than the revenue to the pension relief fund in
that year, then the revenue plus interest plus the fund balance in that
year shall be used in STEP FIVE of subsection (e) instead of the STEP
FOUR difference.
(h) The state board shall have its actuary report annually on the
appropriateness of the actuarial assumptions used in determining the
distribution amount under subsection (e). At least every five (5) years,
the state board shall have its actuary recompute the value of (k) under
STEP TWO of subsection (e).
(i) Each calendar year the state board shall determine the amounts
to be allocated to the "m portion" of the pension relief fund under the
following STEPS, which shall be completed before July 1 of each year:
STEP ONE. The state board shall determine the following:
(1) "Excess earnings", which are the state board's projection of
earnings for the calendar year from investments of the "k portion" of
the fund that exceed the amount of earnings that would have been
earned if the rate of earnings was the rate assumed by the actuary of the
state board in his calculation of (k) under STEP THREE of subsection
(e).
(2) "Prior deficit amount", which is:
(A) the amount of earnings that would have been earned under
the rate assumed by the actuary of the state board in his
calculation of (k) under STEP THREE of subsection (e);
minus
(B) the amount of earnings received;
for a calendar year after 1981 in which (B) is less than (A).
STEP TWO. The state board shall distribute to the "m portion" the
excess earnings less any prior deficit amounts.
(j) The "m portion" of the fund shall be any direct allocations plus:
(1) amounts allocated under subsection (i); and
(2) any earnings on the "m portion" less amounts previously
distributed under subsection (l).
(k) The state board shall determine, based on actual experience and
reasonable projections, the units eligible for distribution from the "m
portion" of the pension relief fund according to the following STEPS:
STEP ONE. Determine the amount of pension payments to be paid
by the unit in the calendar year, net of the amount of the distribution to
be received by the unit under subsection (e) in that year, plus
contributions to be made under IC 36-8-8 in that year.
STEP TWO. Divide the amount determined under STEP ONE by
the amount of the maximum permissible ad valorem property tax levy
for the unit as determined under IC 6-1.1-18.5 for the calendar year.
STEP THREE. If the quotient determined under STEP TWO is
equal to or greater than one-tenth (0.1), the unit shall receive a
distribution under subsection (l).
(l) For a calendar year, the state board shall, before July 1 of the
year, distribute from the "m portion" of the pension relief fund to the
extent there are assets in the "m portion" to each eligible unit an
amount, not less than zero (0), determined according to the following
STEPS:
STEP ONE. For the first of consecutive years that a unit is eligible
to receive a distribution under this subsection, determine the amount
of pension payments paid by the unit in the calendar year two (2) years
preceding the calendar year net of the amount of distributions received
by the unit under subsection (e) in the calendar year two (2) years
preceding the calendar year.
STEP TWO. For the first of consecutive years that a unit is eligible
to receive a distribution under this subsection, divide the amount
determined under STEP ONE by the amount of the maximum
permissible ad valorem property tax levy for the unit as determined
under IC 6-1.1-18.5 for the calendar year two (2) years preceding the
calendar year or that would have applied if most property taxes had
not been eliminated.
STEP THREE. For the first and all subsequent consecutive years
that a unit is eligible to receive a distribution under this subsection,
multiply the amount of the maximum permissible ad valorem property
tax levy for the unit as determined under IC 6-1.1-18.5 for the calendar
year (or that would have applied for the unit if most property taxes
had not been eliminated) by the quotient determined under STEP
TWO.
STEP FOUR. Subtract the amount determined under STEP THREE
from the amount of pension payments to be paid by the unit in the
calendar year, net of distributions to be received under subsection (e)
for the calendar year.
SOURCE: IC 5-19-1-4; (04)IN1312.1.16. -->
SECTION 16. IC 5-19-1-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. The following
words and phrases, as used in this chapter, shall, for the purposes of
this chapter, unless a different meaning appears from the context, have
the following meanings:
(a) The singular shall include the plural and the plural shall include
the singular as requisite.
(b) The term "state" shall mean and include the state of Indiana, the
governor of the state of Indiana, any agency of the state of Indiana
designated by the governor to receive federal aid, and any officer,
board, bureau, commission, division, or department. The term
"governor" shall mean the governor of the state of Indiana.
(c) The term "political subdivision" shall mean and include any
county of Indiana, any civil township of Indiana, any civil incorporated
city or town of Indiana, any school corporation of any township, city,
or town of Indiana, or any other territorial subdivision of the state
recognized or designated in any law, any public utility entity not
privately owned, any public sewage disposal entity, any public flood
control or levee district or entity, any public drainage district or entity,
any public sanitary district or entity, and any public improvement
district authority or entity authorized to levy taxes or assessments.
within the meaning of IC 36-1-2-13.
SOURCE: IC 6-1.1-18-2; (04)IN1312.1.17. -->
SECTION 17. IC 6-1.1-18-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 2. (a) Before January
1, 2006, the state may not impose a an ad valorem property tax rate
on tangible property in excess of thirty-three hundredths of one cent
($0.0033) on each one hundred dollars ($100) of assessed valuation.
The state tax rate is not subject to review by county boards of tax
adjustment or county auditors.
(b) The state may not impose an ad valorem property tax rate
on tangible property after December 31, 2005.
(c) This section does not apply to political subdivisions of the state.
SOURCE: IC 6-1.1-21-3; (04)IN1312.1.18. -->
SECTION 18. IC 6-1.1-21-3, AS AMENDED BY P.L.192-2002(ss),
SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 3. (a) The department, with the assistance of
the auditor of state and the department of local government finance,
shall determine an amount equal to the eligible property tax
replacement amount, which is the estimated property tax replacement.
(b) The department of local government finance shall certify to the
department the amount of homestead credits provided under
IC 6-1.1-20.9 which are allowed by the county for the particular
calendar year.
(c) If there are one (1) or more taxing districts in the county that
contain all or part of an economic development district that meets the
requirements of section 5.5 of this chapter, the department of local
government finance shall estimate an additional distribution for the
county in the same report required under subsection (a). This additional
distribution equals the sum of the amounts determined under the
following STEPS for all taxing districts in the county that contain all
or part of an economic development district:
STEP ONE: Estimate that part of the sum of the amounts under
section 2(g)(1)(A) and 2(g)(2) of this chapter that is attributable
to the taxing district.
STEP TWO: Divide:
(A) that part of the estimated property tax replacement amount
attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the taxes levied in the taxing district that are allocated to
a special fund under IC 6-1.1-39-5.
(d) The department of local government finance shall estimate
an additional distribution for the county in the same report
required under subsection (a). The additional distribution is equal
to twenty percent (20%) of the certified distribution for a county
under IC 6-3.5-9.
SOURCE: IC 6-1.1-21-4; (04)IN1312.1.19. -->
SECTION 19. IC 6-1.1-21-4, AS AMENDED BY P.L.245-2003,
SECTION 19, AND AS AMENDED BY P.L.264-2003, SECTION 12,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 4.
(a) Each year the
department shall allocate from the property tax replacement fund an
amount equal to the sum of:
(1) each county's total eligible property tax replacement amount
for that year; plus
(2) the total amount of homestead tax credits that are provided
under IC 6-1.1-20.9 and allowed by each county for that year;
plus
(3) an amount for each county that has one (1) or more taxing
districts that contain all or part of an economic development
district that meets the requirements of section 5.5 of this chapter.
This amount is the sum of the amounts determined under the
following STEPS for all taxing districts in the county that contain
all or part of an economic development district:
STEP ONE: Determine that part of the sum of the amounts
under section 2(g)(1)(A) and 2(g)(2) of this chapter that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of the subdivision (1) amount that is
attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the taxes levied in the taxing district that are allocated to
a special fund under IC 6-1.1-39-5.
(4) Twenty percent (20%) of the county's certified
distribution under IC 6-3.5-9.
(b) Except as provided in subsection (e), between March 1 and
August 31 of each year, the department shall distribute to each county
treasurer from the property tax replacement fund one-half (1/2) of the
estimated distribution for that year for the county. Between September
1 and December 15 of that year, the department shall distribute to each
county treasurer from the property tax replacement fund the remaining
one-half (1/2) of each estimated distribution for that year. The amount
of the distribution for each of these periods shall be according to a
schedule determined by the property tax replacement fund board under
section 10 of this chapter. The estimated distribution for each county
may be adjusted from time to time by the department to reflect any
changes in the total county tax levy upon which the estimated
distribution is based.
(c) On or before December 31 of each year or as soon thereafter as
possible, the department shall make a final determination of the amount
which should be distributed from the property tax replacement fund to
each county for that calendar year. This determination shall be known
as the final determination of distribution. The department shall
distribute to the county treasurer or receive back from the county
treasurer any deficit or excess, as the case may be, between the sum of
the distributions made for that calendar year based on the estimated
distribution and the final determination of distribution. The final
determination of distribution shall be based on the auditor's abstract
filed with the auditor of state, adjusted for postabstract adjustments
included in the December settlement sheet for the year, and such
additional information as the department may require.
(d) All distributions provided for in this section shall be made on
warrants issued by the auditor of state drawn on the treasurer of state.
If the amounts allocated by the department from the property tax
replacement fund exceed in the aggregate the balance of money in the
fund, then the amount of the deficiency shall be transferred from the
state general fund to the property tax replacement fund, and the auditor
of state shall issue a warrant to the treasurer of state ordering the
payment of that amount. However, any amount transferred under this
section from the general fund to the property tax replacement fund
shall, as soon as funds are available in the property tax replacement
fund, be retransferred from the property tax replacement fund to the
state general fund, and the auditor of state shall issue a warrant to the
treasurer of state ordering the replacement of that amount.
(e) Except as provided in subsection (i), the department shall not
distribute under subsection (b) and section 10 of this chapter the money
attributable to the county's property reassessment fund if:
(1) by the date the distribution is scheduled to be made, (1) the
county auditor has not sent a certified statement required to be
sent by that date under IC 6-1.1-17-1 to the department of local
government finance; or
(2) by the deadline under IC 36-2-9-20, the county auditor has
not transmitted data as required under that section; or
(2) (3) the county assessor has not forwarded to the department
of local government finance the duplicate copies of all approved
exemption applications required to be forwarded by that date
under IC 6-1.1-11-8(a).
(f) Except as provided in subsection (i), if the elected township
assessors in the county, the elected township assessors and the county
assessor, or the county assessor has not transmitted to the department
of local government finance by October 1 of the year in which the
distribution is scheduled to be made the data for all townships in the
county required to be transmitted under IC 6-1.1-4-25(b), the state
board or the department shall not distribute under subsection (b) and
section 10 of this chapter a part of the money attributable to the
county's property reassessment fund. The portion not distributed is the
amount that bears the same proportion to the total potential distribution
as the number of townships in the county for which data was not
transmitted by August 1 October 1 as described in this section bears to
the total number of townships in the county.
(g) Money not distributed under subsection (e) for the reasons
stated in subsection (e)(1) and (e)(2) shall be distributed to the county
when:
(1) the county auditor sends to the department of local
government finance the certified statement required to be sent
under IC 6-1.1-17-1; and
(2) the county assessor forwards to the department of local
government finance the approved exemption applications
required to be forwarded under IC 6-1.1-11-8(a);
with respect to which the failure to send or forward resulted in the
withholding of the distribution under subsection (e).
(h) Money not distributed under subsection (f) shall be distributed
to the county when the elected township assessors in the county, the
elected township assessors and the county assessor, or the county
assessor transmits to the department of local government finance the
data required to be transmitted under IC 6-1.1-4-25(b) with respect to
which the failure to transmit resulted in the withholding of the
distribution under subsection (f).
(i) The restrictions on distributions under subsections (e) and (f) do
not apply if the department of local government finance determines
that:
(1) the failure of:
(A) a county auditor to send a certified statement; or
(B) a county assessor to forward copies of all approved
exemption applications;
as described in subsection (e); or
(2) the failure of an official to transmit data as described in
subsection (f);
is justified by unusual circumstances.
SOURCE: IC 6-1.1-21-13; (04)IN1312.1.20. -->
SECTION 20. IC 6-1.1-21-13 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]:
Sec. 13. (a) A county auditor
receiving an additional distribution under section 4(a)(4) of this
chapter shall distribute the additional distribution to political
subdivisions in the county to which IC 21-10 or IC 36-1.3 (as
appropriate) applies.
(b) The county auditor shall distribute the result determined
under STEP FIVE of the following formula to each political
subdivision:
STEP ONE: Determine the budget that is subject to IC 21-10
or IC 36-1.3 (as appropriate) for the political subdivision in
the year of the distribution.
STEP TWO: Determine the STEP ONE amounts for all
political subdivisions in the county.
STEP THREE: Divide the STEP ONE amount by the STEP
TWO amount.
STEP FOUR: Determine the revenue available for
distribution.
STEP FIVE: Multiply the STEP THREE result by the STEP
FOUR amount.
(c) If a political subdivision that is eligible for a distribution
under this section is located in more than one (1) county,
distributions shall be made to the political subdivision based on the
assessed value of the property that is both in the political
subdivision and in the county relative to the assessed value of the
property that is both in the political subdivision and located in any
county.
(d) The revenue a county auditor receives under this section
may be used by a political subdivision to fund any lawful purpose
of the political subdivision or pledged by the receiving political
subdivision to repay an obligation of the political subdivision or a
tax increment financing district or economic development district
that is located at least in part in the boundaries of the political
subdivision. The revenue shall be treated as general money under
IC 21-10 or IC 36-1.3 (as appropriate). For purposes of the
distribution of excise taxes under IC 6-6-5 and other miscellaneous
revenue that is distributed based on the property tax levy of a
political subdivision, the amount distributed under this section
shall be treated as property taxes.
SOURCE: IC 6-2.5-2-2; (04)IN1312.1.21. -->
SECTION 21. IC 6-2.5-2-2, AS AMENDED BY P.L.192-2002(ss),
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 2. (a) On a retail unitary transaction before
February 1, 2005, the state gross retail tax is measured by the gross
retail income received by a retail merchant in a retail unitary
transaction and is imposed at the following rates:
STATE
GROSS RETAIL INCOME
GROSS
FROM THE
RETAIL
RETAIL UNITARY
TAX
TRANSACTION
$ 0
less than $ 0
.09
$ 0.01
at least $ 0.09 but less than $ 0
.25
$ 0.02
at least $ 0.25 but less than $ 0
.42
$ 0.03
at least $ 0.42 but less than $ 0
.59
$ 0.04
at least $ 0.59 but less than $ 0
.75
$ 0.05
at least $ 0.75 but less than $ 0
.92
$ 0.06
at least $ 0.92 but less than $1.09
On a retail unitary transaction before February 1, 2005, in which the
gross retail income received by the retail merchant is one dollar and
nine cents ($1.09) or more, the state gross retail tax is six percent (6%)
of that gross retail income. On a retail unitary transaction after
January 31, 2005, the state gross retail tax is measured by the gross
retail income received by a retail merchant in a retail unitary
transaction and is imposed at the following rates:
STATE
GROSS RETAIL INCOME
GROSS
FROM THE
RETAIL
RETAIL UNITARY
TAX
TRANSACTION
$ 0
less than $ 0
.10
$ 0.01
at least $ 0.10 but less than $ 0
.28
$ 0.02
at least $ 0.28 but less than $ 0
.46
$ 0.03
at least $ 0.46 but less than $ 0
.64
$ 0.04
at least $ 0.64 but less than $ 0
.82
$ 0.05
at least $ 0.82 but less than $ 1
.00
On a retail unitary transaction after January 31, 2005, in which the
gross retail income received by the retail merchant is one dollar
($1.00) or more, the state gross retail tax is five and five-tenths
percent (5.5%) of that gross retail income.
(b) If the tax, computed under subsection (a), results in a fraction of
one-half cent ($0.005) or more, the amount of the tax shall be rounded
to the next additional cent.
SOURCE: IC 6-2.5-4-4.5; (04)IN1312.1.22. -->
SECTION 22. IC 6-2.5-4-4.5, AS ADDED BY P.L.224-2003,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: 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:
(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
before February 1, 2005, six percent (6%), and after January 31,
2005, five and five-tenths percent (5.5%) of the gross retail income
attributed to the transaction.
SOURCE: IC 6-2.5-6-7; (04)IN1312.1.23. -->
SECTION 23. IC 6-2.5-6-7, AS AMENDED BY P.L.192-2002(ss),
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 7. Except as otherwise provided in IC 6-2.5-7 or
in this chapter, a retail merchant shall pay to the department, for a
particular reporting period, an amount equal to the product of:
(1) before February 1, 2005, six percent (6%), and after
January 31, 2005, five and five-tenths percent (5.5%);
multiplied by
(2) the retail merchant's total gross retail income from taxable
transactions made during the reporting period.
The amount determined under this section is the retail merchant's state
gross retail and use tax liability regardless of the amount of tax he
actually collects.
SOURCE: IC 6-2.5-6-8; (04)IN1312.1.24. -->
SECTION 24. IC 6-2.5-6-8, AS AMENDED BY P.L.192-2002(ss),
SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 8. (a) For purposes of determining the amount of
state gross retail and use taxes which he must remit under section 7 of
this chapter, a retail merchant may exclude from his gross retail income
from retail transactions made during a particular reporting period, an
amount equal to the product of:
(1) the amount of that gross retail income; multiplied by
(2) the retail merchant's "income exclusion ratio" for the tax year
which contains the reporting period.
(b) A retail merchant's "income exclusion ratio" for a particular tax
year equals a fraction, the numerator of which is the retail merchant's
estimated total gross retail income for the tax year from unitary retail
transactions which produce gross retail income of less than:
(1) for retail transactions before February 1, 2005, nine cents
($0.09) each;
and
(2) for retail transactions after January 31, 2005, ten cents
($0.10) each;
and the denominator of which is the retail merchant's estimated total
gross retail income for the tax year from all retail transactions.
(c) In order to minimize a retail merchant's recordkeeping
requirements, the department shall prescribe a procedure for
determining the retail merchant's income exclusion ratio for a tax year,
based on a period of time, not to exceed fifteen (15) consecutive days,
during the first quarter of the retail merchant's tax year. However, the
period of time may be changed if the change is requested by the retail
merchant because of his peculiar accounting procedures or marketing
factors. In addition, if a retail merchant has multiple sales locations or
diverse types of sales, the department shall permit the retail merchant
to determine the ratio on the basis of a representative sampling of the
locations and types of sales.
SOURCE: IC 6-2.5-6-10; (04)IN1312.1.25. -->
SECTION 25. IC 6-2.5-6-10, AS AMENDED BY P.L.192-2002(ss),
SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 10. (a) In order to compensate retail merchants for
collecting and timely remitting the state gross retail tax and the state
use tax, every retail merchant, except a retail merchant referred to in
subsection (c), is entitled to deduct and retain from the amount of those
taxes otherwise required to be remitted under IC 6-2.5-7-5 or under this
chapter, if timely remitted, a retail merchant's collection allowance.
(b) The allowance equals, before February 1, 2005, eighty-three
hundredths percent (0.83%) and, after January 31, 2005, nine
hundred five thousandths percent (0.905%) of the retail merchant's
state gross retail and use tax liability accrued during a reporting period.
(c) A retail merchant described in IC 6-2.5-4-5 or IC 6-2.5-4-6 is not
entitled to the allowance provided by this section.
SOURCE: IC 6-2.5-7-3; (04)IN1312.1.26. -->
SECTION 26. IC 6-2.5-7-3, AS AMENDED BY P.L.192-2002(ss),
SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 3. (a) With respect to the sale of gasoline which
is dispensed from a metered pump, a retail merchant shall collect, for
each unit of gasoline sold, state gross retail tax in an amount equal to
the product, rounded to the nearest one-tenth of one cent ($0.001), of:
(1) the price per unit before the addition of state and federal taxes;
multiplied by
(2)
before February 1, 2005, six percent (6%),
and after
January 31, 2005, five and five-tenths percent (5.5%).
The retail merchant shall collect the state gross retail tax prescribed in
this section even if the transaction is exempt from taxation under
IC 6-2.5-5.
(b) With respect to the sale of special fuel or kerosene which is
dispensed from a metered pump, unless the purchaser provides an
exemption certificate in accordance with IC 6-2.5-8-8, a retail merchant
shall collect, for each unit of special fuel or kerosene sold, state gross
retail tax in an amount equal to the product, rounded to the nearest
one-tenth of one cent ($0.001), of:
(1) the price per unit before the addition of state and federal taxes;
multiplied by
(2) before February 1, 2005, six percent (6%), and after
January 31, 2005, five and five-tenths percent (5.5%).
Unless the exemption certificate is provided, the retail merchant shall
collect the state gross retail tax prescribed in this section even if the
transaction is exempt from taxation under IC 6-2.5-5.
SOURCE: IC 6-2.5-7-5; (04)IN1312.1.27. -->
SECTION 27. IC 6-2.5-7-5, AS AMENDED BY P.L.192-2002(ss),
SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 5. (a) Each retail merchant who dispenses
gasoline or special fuel from a metered pump shall, in the manner
prescribed in IC 6-2.5-6, report to the department the following
information:
(1) The total number of gallons of gasoline sold from a metered
pump during the period covered by the report.
(2) The total amount of money received from the sale of gasoline
described in subdivision (1) during the period covered by the
report.
(3) That portion of the amount described in subdivision (2) which
represents state and federal taxes imposed under this article,
IC 6-6-1.1, or Section 4081 of the Internal Revenue Code.
(4) The total number of gallons of special fuel sold from a
metered pump during the period covered by the report.
(5) The total amount of money received from the sale of special
fuel during the period covered by the report.
(6) That portion of the amount described in subdivision (5) that
represents state and federal taxes imposed under this article,
IC 6-6-2.5, or Section 4041 of the Internal Revenue Code.
(b) Concurrently with filing the report, the retail merchant shall
remit the state gross retail tax in an amount which equals,
before
February 1, 2005, five and sixty-six hundredths percent (5.66%) of the
gross receipts
and, after January 31, 2005, five and twenty-one
hundredths percent (5.21%), including state gross retail taxes but
excluding Indiana and federal gasoline and special fuel taxes, received
by the retail merchant from the sale of the gasoline and special fuel that
is covered by the report and on which the retail merchant was required
to collect state gross retail tax. The retail merchant shall remit that
amount regardless of the amount of state gross retail tax which he has
actually collected under this chapter. However, the retail merchant is
entitled to deduct and retain the amounts prescribed in subsection (c),
IC 6-2.5-6-10, and IC 6-2.5-6-11.
(c) A retail merchant is entitled to deduct from the amount of state
gross retail tax required to be remitted under subsection (b) an amount
equal to:
(1) the sum of the prepayment amounts made during the period
covered by the retail merchant's report; minus
(2) the sum of prepayment amounts collected by the retail
merchant, in the merchant's capacity as a qualified distributor,
during the period covered by the retail merchant's report.
For purposes of this section, a prepayment of the gross retail tax is
presumed to occur on the date on which it is invoiced.
SOURCE: IC 6-2.5-10-1; (04)IN1312.1.28. -->
SECTION 28. IC 6-2.5-10-1, AS AMENDED BY P.L.192-2002(ss),
SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 1. (a) The department shall account for all state
gross retail and use taxes that it collects.
(b) The department shall deposit
the following percentage of those
collections in the following
manner: funds:
(1)
Fifty percent (50%) of the collections shall be paid Into the
property tax replacement fund established under IC 6-1.1-21:
(A) before March 1, 2005, fifty percent (50%); and
(B) after February 28, 2005, forty-five and five hundred
seven thousandths percent (45.507%).
(2)
Forty-nine and one hundred ninety-two thousandths percent
(49.192%) of the collections shall be paid Into the state general
fund:
(A) before March 1, 2005, forty-nine and one hundred
ninety-two thousandths percent (49.192%); and
(B) after February 28, 2005, fifty-three and six hundred
twelve thousandths percent (53.612%).
(3)
Six hundred thirty-five thousandths of one percent (0.635%)
of the collections shall be paid Into the public mass transportation
fund established by IC 8-23-3-8:
(A) before March 1, 2005, six hundred thirty-five
thousandths percent (0.635%); and
(B) after February 28, 2005, six hundred ninety-two
thousandths percent (0.692%).
(4)
Thirty-three thousandths of one percent (0.033%) of the
collections shall be deposited Into the industrial rail service fund
established under IC 8-3-1.7-2:
(A) before March 1, 2005, thirty-three thousandths percent
(0.033%); and
(B) after February 28, 2005, thirty-six thousandths percent
(0.036%).
(5)
Fourteen-hundredths of one percent (0.14%) of the collections
shall be deposited Into the commuter rail service fund established
under IC 8-3-1.5-20.5:
(A) before March 1, 2005, fourteen hundredths percent
(0.14%); and
(B) after February 28, 2005, one hundred fifty-three
thousandths percent (0.153%).
SOURCE: IC 6-3-7-3; (04)IN1312.1.29. -->
SECTION 29. IC 6-3-7-3, AS AMENDED BY P.L.192-2002(ss),
SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 3. (a) All revenues derived from collection
of the adjusted gross income tax imposed on corporations shall be
deposited in the state general fund.
(b) All revenues derived from collection of the adjusted gross
income tax imposed on persons shall be deposited as follows:
(1) Eighty-six percent (86%) in the state general fund.
(2) Fourteen percent (14%) in the property tax replacement fund.
SECTION 30. IC 6-3.5-1.1-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 5, 2005]: Sec. 1.5. (a) Any reference in this
chapter relating to certified shares that refers to a levy or property
tax imposed in a civil taxing district shall be treated as a reference
to the amount raised by a local government income tax under
IC 6-3.5-9 for the taxing district.
(b) Any amount distributable under this chapter to a civil taxing
unit or school corporation for additional property tax replacement
credits that exceeds the amount of property tax imposed in the
political subdivision shall be distributed to civil taxing units as
certified shares.
SOURCE: IC ; (04)IN1312.1.31. -->
SECTION 31. IC 6-3.5-6-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 5, 2005]: Sec. 1.5. (a) Any reference in this
chapter that refers to a levy or property tax imposed in a civil
taxing district shall be treated as a reference to the amount raised
by a local government income tax under IC 6-3.5-9 for the taxing
district.
(b) Any amount distributable under this chapter to a civil taxing
unit or school corporation for additional homestead credits that
exceeds the amount of property tax imposed on homesteads in the
political subdivision shall be distributed to civil taxing units in the
same manner as other money distributed under this chapter.
SOURCE: IC ; (04)IN1312.1.32. -->
SECTION 32. IC 6-3.5-7-1.3 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 5, 2005]:
Sec. 1.3. (a) Any reference in this
chapter that refers to a levy or property tax imposed in a civil
taxing district shall be treated as a reference to the amount raised
by a local government income tax under IC 6-3.5-9 for the taxing
district.
(b) Any amount distributable under this chapter to a civil taxing
unit or school corporation for additional homestead credits that
exceeds the amount of property tax imposed on homesteads in the
political subdivision shall be distributed to civil taxing units in the
same manner as other money distributed under this chapter.
SOURCE: IC 6-3.5-9; (04)IN1312.1.33. -->
SECTION 33. IC 6-3.5-9 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 9. Local Government Income Tax
Sec. 1. The following definitions apply throughout this chapter:
(1) "Adjusted gross income" has the meaning set forth in
IC 6-3-1-3.5.
(2) "Civil taxing unit" means a political subdivision to which
IC 21-10 or IC 36-1.3 (as appropriate) applies. The term does
not include a school corporation.
(3) "County income tax council" means a council established
by section 2 of this chapter.
(4) "County taxpayer", as it relates to a particular county,
means a resident person or corporation (as defined in IC 6-3)
who resides in that county as determined under section 18 of
this chapter.
(5) "Department" means the department of state revenue.
(6) "Fiscal body" has the meaning set forth in IC 36-1-2-6.
(7) "Resident county taxpayer", as it relates to a particular
county, means a county taxpayer who resides in that county.
(8) "School corporation" has the meaning set forth in
IC 6-1.1-1-16.
Sec. 2. (a) A county income tax council is established for each
county in Indiana. The membership of each county's county
income tax council consists of the fiscal body of the county and the
fiscal body of each city or town that lies either partially or entirely
within that county.
(b) Using procedures described in this chapter, a county income
tax council may adopt ordinances to:
(1) impose the local government income tax in the county;
(2) subject to section 10 of this chapter, rescind the local
government income tax in the county;
(3) increase the local government income tax rate for the
county; or
(4) subject to section 11 of this chapter, decrease the local
government income tax rate for the county.
(c) An ordinance adopted in a particular year under this
chapter to impose or rescind the local government income tax or
to increase the tax rate is effective July 1 of that year.
(d) The local government income tax may not be imposed or
increased under this chapter to a rate that when added to all other
revenues (as defined in IC 36-1.3-2-11), excluding revenues from
exempted sources (as defined in IC 36-1.3-2-7), will exceed the sum
of the expenditure limits for all civil taxing units in the county, as
determined under IC 21-10 or IC 36-1.3 (as appropriate).
However, the county income tax council shall increase the tax rate
as required and only for the time necessary to meet a fiscal
emergency of a civil taxing unit approved by the department of
local government finance under IC 21-10 or IC 36-1.3 (as
appropriate). If a tax rate is increased under this chapter to meet
a fiscal emergency, the revenue raised by the increase shall be
applied to the fiscal emergency or to repay interest and principal
on bonds or anticipation warrants issued to meet the fiscal
emergency.
(e) The county income tax council shall give notice of an action
under this chapter to the department of local government finance
not more than five (5) business days after adopting an ordinance
under this chapter.
(f) After a hearing, the department of local government finance
may reduce a tax rate imposed or increased under this chapter
before June 1 preceding the date when the change becomes
effective in order to implement subsection (d). If the department of
local government finance reduces a tax rate under this subsection,
the department of local government finance shall give notice of the
action to the department, the county income tax council, and the
county auditor for the county.
Sec. 3. (a) In the case of a political subdivision that lies within
more than one (1) county, the county auditor of each county shall
base the allocations required by subsection (b) on the population
of that part of the city or town that lies within the county for which
the allocations are being made.
(b) Every county income tax council has a total of one hundred
(100) votes. Every member of the county income tax council is
allocated a percentage of the total one hundred (100) votes that
may be cast. The percentage that a city or town is allocated for a
year equals the same percentage that the population of the city or
town bears to the population of the county. The percentage that the
county is allocated for a year equals the same percentage that the
population of all areas in the county not located in a city or town
bears to the population of the county. On or before January 1 of
each year, the county auditor shall certify to each member of the
county income tax council the number of votes, rounded to the
nearest one-hundredth (0.01), the member has for that year.
Sec. 4. (a) A member of the county income tax council may
exercise its votes by passing a resolution and transmitting the
resolution to the county auditor. However, in the case of an
ordinance to impose, rescind, increase, decrease, or freeze the
county rate of the local government income tax, the member must
transmit the resolution to the county auditor by the appropriate
time described in section 8, 9, 10, or 11 of this chapter. The form of
a resolution is as follows:
"The __________ (name of civil taxing unit's fiscal body) casts
its _____ votes _____ (for or against) the proposed ordinance
of the __________ County Income Tax Council, which reads
as follows:".
(b) A resolution passed by a member of the county income tax
council exercises all votes of the member on the proposed
ordinance, and those votes may not be changed during the year.
Sec. 5. Any member of a county income tax council may present
an ordinance for passage. To do so, the member must pass a
resolution to propose the ordinance to the county income tax
council and distribute a copy of the proposed ordinance to the
county auditor. The county auditor shall treat any proposed
ordinance presented under this section as a casting of all that
member's votes in favor of that proposed ordinance. Subject to the
limitations of section 6 of this chapter, the county auditor shall
deliver copies of a proposed ordinance the auditor receives to all
members of the county income tax council within ten (10) days
after receipt. Once a member receives a proposed ordinance from
the county auditor, the member shall vote on it within thirty (30)
days after receipt. If a member does not vote within thirty (30)
days, the county auditor shall record the member as having voted
against the proposed ordinance.
Sec. 6. (a) A county income tax council may pass only one (1)
ordinance described in section 2(b) of this chapter in one (1) year.
Once an ordinance described in section 2(b) of this chapter is
passed, the county auditor shall:
(1) cease distributing proposed ordinances of those types for
the rest of the year; and
(2) withdraw from the membership any other of those types
of proposed ordinances.
Any votes subsequently received by the county auditor on proposed
ordinances of those types during that same year are void.
(b) The county income tax council may not vote on nor may the
county auditor distribute to the members of the county income tax
council any proposed ordinance during a year if previously during
that same year the county auditor received and distributed to the
members of the county income tax council a proposed ordinance
that if passed, would have substantially the same effect.
Sec. 7. (a) Before a member of a county income tax council may
propose an ordinance or vote on a proposed ordinance, the
member must hold a public hearing on the proposed ordinance and
provide the public with notice of the date, time, and place where
the public hearing will be held.
(b) The notice required by subsection (a) must be given in
accordance with IC 5-3-1.
(c) The form of the notice required by this section must be in
substantially the following form:
"NOTICE OF LOCAL OPTION
INCOME TAX ORDINANCE VOTE
The fiscal body of the __________ (insert name of civil taxing
unit) hereby declares that on __________ (insert date) at ____
(insert the time of day) a public hearing will be held at
__________ (insert location) concerning the following
resolution to propose an ordinance (or proposed ordinance)
that is before the members of the county income tax council.
Members of the public are invited to attend the hearing for
the purpose of expressing their views.
(Insert a copy of the proposed ordinance or resolution to
propose an ordinance.)".
Sec. 8. (a) The county income tax council of a county may
impose a local government income tax on the adjusted gross
income of county taxpayers effective July 1 of that same year.
(b) To impose the local government income tax, a county income
tax council must, after January 1 but before April 1 of the year,
pass an ordinance. The ordinance must substantially state the
following:
"The ________ County Income Tax Council imposes the local
government income tax on the county taxpayers of ________
County. The local government income tax is imposed at a rate
of ________ (insert rate) on the resident county taxpayers of
the county. This tax takes effect July 1 of this year.".
(c) The county auditor shall record all votes taken on ordinances
presented for a vote under this section and immediately send a
certified copy of the results to the department by certified mail.
Sec. 9. (a) If on January 1 of a calendar year a local government
income tax rate is in effect for resident county taxpayers, the
county income tax council may after January 1 and before April 1
of that year pass an ordinance to increase the tax rate for resident
county taxpayers. If a county income tax council passes an
ordinance under this section, the local government income tax rate
for resident county taxpayers increases as provided in the
ordinance.
(b) The county auditor shall record any vote taken on an
ordinance proposed under the authority of this section and
immediately send a certified copy of the results to the department
by certified mail.
Sec. 10. (a) A local government income tax imposed by a county
income tax council under this chapter remains in effect until
rescinded.
(b) Subject to subsection (c), the county income tax council may
rescind the local government income tax by passing an ordinance
to rescind the tax after January 1 but before June 1 of a year.
(c) A county income tax council may not rescind the local
government income tax or take action that would result in a civil
taxing unit in the county having a smaller distributive share than
the distributive share to which it was entitled when it pledged local
government income tax, if the civil taxing unit or any commission,
board, department, or authority that is authorized by statute to
pledge local government income tax has pledged local government
income tax for any purpose permitted by IC 5-1-14 or any other
statute.
(d) The county auditor shall record all votes taken on a
proposed ordinance presented for a vote under the authority of this
section and shall immediately send a certified copy of the results to
the department by certified mail.
Sec. 11. (a) A county income tax council may adopt an ordinance
to decrease the local government income tax rate in effect.
(b) To decrease the local government income tax rate, the
county income tax council must adopt an ordinance after January
1 but before April 1 of a year. The ordinance must substantially
state the following:
"The ______________ County Income Tax Council decreases
the local government income tax rate from _______ percent
(___%) to _______ percent (___ %). This ordinance takes
effect July 1 of this year.".
(c) A county income tax council may not decrease the local
government income tax if the county or any commission, board,
department, or authority that is authorized by statute to pledge the
local government income tax has pledged the local government
income tax for any purpose permitted by IC 5-1-14 or any other
statute.
(d) An ordinance adopted under this section takes effect July 1
of the year in which the ordinance is adopted.
(e) The county auditor shall record the votes taken on an
ordinance under this section and shall send a certified copy of the
ordinance to the department by certified mail not more than thirty
(30) days after the ordinance is adopted.
Sec. 12. If for any taxable year a county taxpayer is subject to
different tax rates for the local government income tax imposed by
a particular county, the taxpayer's local government income tax
rate for that county and that taxable year is the rate determined in
the last STEP of the following STEPS:
STEP ONE: Multiply the number of months in the taxpayer's
taxable year that precede July 1 by the rate in effect before
the rate change.
STEP TWO: Multiply the number of months in the taxpayer's
taxable year that follow June 30 by the rate in effect after the
rate change.
STEP THREE: Divide the sum of the amounts determined
under STEPS ONE and TWO by twelve (12).
Sec. 13. If a local government income tax is not in effect during
a county taxpayer's entire taxable year, the amount of local
government income tax that the county taxpayer owes for that
taxable year equals the product of:
(1) the amount of local government income tax the county
taxpayer would owe if the tax had been imposed during the
county taxpayer's entire taxable year; multiplied by
(2) a fraction. The numerator of the fraction equals the
number of days in the county taxpayer's taxable year during
which the local government income tax was in effect. The
denominator of the fraction equals the total number of days
in the county taxpayer's taxable year.
However, if the taxpayer files state income tax returns on a
calendar year basis, the fraction to be applied under this section is
one-half (1/2).
Sec. 14. (a) A special account within the state general fund shall
be established for each county that adopts a local government
income tax. Revenue derived from the imposition of the local
government income tax shall be deposited in that county's account
in the state general fund.
(b) Income earned on money held in an account under
subsection (a) becomes a part of that account.
(c) Revenue remaining in an account established under
subsection (a) at the end of a state fiscal year does not revert to the
state general fund.
Sec. 15. (a) Revenue derived from the imposition of a local
government income tax shall, in the manner prescribed by this
section, be distributed to the county that imposed it. The amount
that is to be distributed to a county during an ensuing calendar
year equals the amount of local government income tax revenue
that the department, after reviewing the recommendation of the
budget agency, estimates will be received from that county during
the twelve (12) month period beginning July 1 of the immediately
preceding calendar year and ending June 30 of the ensuing
calendar year.
(b) Before June 16 of each calendar year, the department, after
reviewing the recommendation of the budget agency, shall estimate
and certify to the county auditor of each adopting county the
amount of local government income tax revenue that will be
collected from that county during the twelve (12) month period
beginning July 1 of that calendar year and ending June 30 of the
immediately succeeding calendar year. The amount certified is the
county's certified distribution for the immediately succeeding
calendar year. The amount certified may be adjusted under
subsection (c) or (d).
(c) The department may certify to an adopting county an
amount that is greater than the estimated twelve (12) month
revenue collection if the department, after reviewing the
recommendation of the budget agency, determines that there will
be a greater amount of revenue available for distribution from the
county's account established under section 14 of this chapter.
(d) The department may certify an amount less than the
estimated twelve (12) month revenue collection if the department,
after reviewing the recommendation of the budget agency,
determines that a part of those collections needs to be distributed
during the current calendar year so that the county will receive the
full certified distribution for the current calendar year.
(e) One-twelfth (1/12) of each adopting county's certified
distribution for a calendar year shall be distributed from the
account established under section 14 of this chapter to the
appropriate county treasurer on the first day of each month of that
calendar year.
(f) Upon receipt, each monthly payment of a county's certified
distribution shall be allocated among, distributed to, and used by
the civil taxing units of the county as provided in sections 16 and 17
of this chapter.
(g) All distributions from an account established under section
14 of this chapter shall be made by warrants issued by the auditor
of state to the treasurer of state ordering the appropriate
payments.
Sec. 16. (a) The revenue a county auditor receives under this
chapter may be used by a civil taxing unit to fund any lawful
purpose of the civil taxing unit or pledged by the receiving civil
taxing unit to repay an obligation of the civil taxing unit or a tax
increment financing district or economic development district that
is located at least in part in the boundaries of the civil taxing unit.
The revenue shall be treated as general money under IC 21-10 or
IC 36-1.3 (as appropriate). For purposes of the distribution of
excise taxes under IC 6-6-5 and other miscellaneous revenue that
is distributed based on the property tax levy of a political
subdivision, the amount distributed under this section shall be
treated as property taxes.
(b) The amount of distributive shares that each civil taxing unit
in a county is entitled to receive during a month equals the product
of:
(1) the amount of revenue that is to be distributed as
distributive shares during that month; multiplied by
(2) a fraction. The numerator of the fraction equals the
revenues (as defined in IC 36-1.3-2-11), excluding revenues
from exempted sources (as defined in IC 35-1.3-2-7), minus
any distribution under this chapter that is available to the
civil taxing unit during the calendar year in which the month
falls. The denominator of the fraction equals the revenues (as
defined in IC 36-1.3-2-11), excluding revenues from exempted
sources (as defined in IC 36-1.3-2-7), minus any distributions
under this chapter that are available to all civil taxing units of
the county during the calendar year in which the month falls.
(c) The department of local government finance shall provide
each county auditor with the fractional amount of distributive
shares that each civil taxing unit in the auditor's county is entitled
to receive monthly under this section.
Sec. 17. In the case of a civil taxing unit that includes a
consolidated city, the civil taxing unit's fiscal body may distribute
any revenue it receives under this chapter to any governmental
entity located in its county.
Sec. 18. (a) For purposes of this chapter, an individual shall be
treated as a resident of the county in which the individual:
(1) maintains a home, if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends the
majority of the individual's time in Indiana during the taxable
year in question.
(b) For purposes of this chapter, a person other than an
individual shall be treated as a resident of the county where the
person owns tangible property. If the person owns tangible
property in more than one (1) county, the adjusted gross income of
the person that is allocated to Indiana under IC 6-3 shall be
allocated among all the counties where the person owns property
under STEP FIVE of the following formula:
STEP ONE: Determine the adjusted gross income of the
person that is allocated to Indiana under IC 6-3.
STEP TWO: Determine the assessed value of all of the
person's tangible property in Indiana.
STEP THREE: Determine the assessed value of all of the
person's tangible property in the county.
STEP FOUR: Divide the STEP THREE amount by the STEP
TWO amount.
STEP FIVE: Multiply the STEP ONE amount by the STEP
FOUR quotient.
Sec. 19. (a) Using procedures provided under this chapter, the
county income tax council of an adopting county may pass an
ordinance to enter into reciprocity agreements with the taxing
authority of a city, town, municipality, county, or other similar
local governmental entity of another state. The reciprocity
agreements must provide that the income of resident county
taxpayers is exempt from income taxation by the other local
governmental entity to the extent income of the residents of the
other local governmental entity is exempt from the local
government income tax in the adopting county.
(b) A reciprocity agreement adopted under this section may not
become effective until it is also made effective in the other local
governmental entity that is a party to the agreement.
(c) The form and effective date of a reciprocity agreement
described in this section must be approved by the department.
Sec. 20. (a) Except as otherwise provided in subsection (b) and
the other provisions of this chapter, all provisions of the adjusted
gross income tax law (IC 6-3) concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) deductions or exemptions from adjusted gross income;
(5) remittances;
(6) incorporation of the provisions of the Internal Revenue
Code;
(7) penalties and interest; and
(8) exclusion of military pay credits for withholding;
apply to the imposition, collection, and administration of the tax
imposed by this chapter.
(b) IC 6-3-1-3.5(a)(6), IC 6-3-3-3, IC 6-3-3-5, and IC 6-3-5-1 do
not apply to the tax imposed by this chapter.
(c) Notwithstanding subsections (a) and (b), each employer shall
report to the department and the county auditor for the adopting
county the amount of withholdings attributable to each county.
This report shall be submitted at the same time the employer
submits the employer's other withholding report to the
department.
Sec. 21. (a) Except as provided in subsection (b), if for a
particular taxable year a county taxpayer is liable for an income
tax imposed by a county, city, town, or other local governmental
entity located outside Indiana, the taxpayer is entitled to a credit
against the local government income tax liability for that same
taxable year. The amount of the credit equals the amount of tax
imposed by the other governmental entity on income derived from
sources outside Indiana and subject to the local government
income tax. However, the credit provided by this section may not
reduce a county taxpayer's local government income tax liability
to an amount less than would have been owed if the income subject
to taxation by the other governmental entity had been ignored.
(b) The credit provided by this section does not apply to a
county taxpayer to the extent that the other governmental entity
provides for a credit to the taxpayer for the amount of local
government income taxes owed under this chapter.
(c) To claim the credit provided by this section, a county
taxpayer must provide the department with satisfactory evidence
that the taxpayer is entitled to the credit.
Sec. 22. (a) If for a particular taxable year a county taxpayer is,
or a county taxpayer and the taxpayer's spouse who file a joint
return are, allowed a credit for the elderly or the totally disabled
under Section 22 of the Internal Revenue Code, the county
taxpayer is, or the county taxpayer and the taxpayer's spouse are,
entitled to a credit against the local government income tax liability
for that same taxable year. The amount of the credit equals the
lesser of:
(1) the product of:
(A) the credit for the elderly or the totally disabled for that
same taxable year; multiplied by
(B) a fraction, the numerator of which is the local
government income tax rate imposed against the county
taxpayer or the county taxpayer and the taxpayer's spouse,
and the denominator of which is fifteen-hundredths (0.15);
or
(2) the amount of local government income tax imposed on the
county taxpayer or the county taxpayer and the taxpayer's
spouse.
(b) If a county taxpayer and the taxpayer's spouse file a joint
return and are subject to different local government income tax
rates for the same taxable year, they shall compute the credit
under this section by using the formula provided by subsection (a),
except that they shall use the average of the two (2) local
government income tax rates imposed against them as the
numerator in subsection (a)(1)(B).
Sec. 23. Notwithstanding any other law, if a civil taxing unit
desires to issue obligations or enter into leases payable wholly or
in part by the local government income tax, the obligations of the
civil taxing unit or any lessor may be sold at public sale in
accordance with IC 5-1-11 or at negotiated sale.
SECTION 34. IC 6-3.5-10 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 5, 2005]:
Chapter 10. Local Income Tax for Education
Sec. 1. The following definitions apply throughout this chapter:
(1) "Adjusted gross income" has the meaning set forth in
IC 6-3-1-3.5.
(2) "Department" refers to the department of state revenue.
(3) "Resident taxpayer", as it relates to a particular school
corporation, means an individual who resides in that school
corporation.
(4) "School corporation" has the meaning set forth in
IC 36-1-2-17.
(5) "School year" means a twelve (12) month period
beginning July 1 of a calendar year.
Sec. 2. (a) Using procedures described in this chapter, a
governing body for a school corporation may adopt ordinances to:
(1) impose the local income tax for education in the school
district;
(2) subject the to section 6 of this chapter, rescind the local
income tax for education in the school district;
(3) increase the local income tax for education rate for the
school district; or
(4) subject to section 7 of this chapter, decrease the local
income tax for education rate in the school district.
(b) An ordinance adopted in a particular year under this
chapter to impose or rescind the local income tax for education or
to increase the tax rate is effective July 1 of that year.
(c) The local income tax for education may not be set at or
increased to a rate that exceeds the lesser of the following:
(1) One and two-tenths percent (1.2%).
(2) A rate that will result in total revenue that, when added to
all other general money (as defined in IC 21-10-1-6) will
exceed the sum of the expenditure limit for the school
corporation as determined under IC 21-10.
However, the governing body of a school corporation shall increase
the rate as required and only for the time necessary to meet a fiscal
emergency of a school corporation approved by the department of
local government finance under IC 21-10. If a tax is increased
under this chapter to meet a fiscal emergency, the money raised by
the increase shall be applied to the fiscal emergency or to repay
interest and principal on bonds or anticipation warrants issued to
meet the fiscal emergency.
(d) The governing body of a school corporation shall give notice
of an action under this chapter to the department of local
government finance and the department not more than five (5)
business days after adopting an ordinance under this chapter.
(e) After a hearing, the department of local government finance
may reduce a rate imposed or increased under this chapter before
June 1 preceding the date when the change becomes effective in
order to implement subsection (c). If the department of local
government finance reduces a tax rate under this subsection, the
department of local government finance shall give notice of the
action to the department, the school corporation, and the county
auditor for each county in which the school corporation is located.
(f) The adoption of an ordinance under this chapter shall be
reported to the department not more than thirty (30) days after the
ordinance is adopted.
Sec. 3. (a) Before a governing body of a school corporation may
propose an ordinance or vote on a proposed ordinance, the
governing body must hold a public hearing on the proposed
ordinance and provide the public with notice of the time and place
of the public hearing.
(b) The notice required by subsection (a) must be given in
accordance with IC 5-3-1.
(c) The notice required by this section must be in substantially
the following form:
"NOTICE OF LOCAL INCOME
TAX FOR EDUCATION ORDINANCE VOTE
The governing body of the __________ (insert name of school
corporation) declares that on __________ (insert date) at ____
(insert the time of day) a public hearing will be held at __________
(insert location) concerning the following resolution to propose an
ordinance (or proposed ordinance) that is before the members of
the governing body of a school corporation. Members of the public
are cordially invited to attend the hearing to express their views.
(Insert a copy of the proposed ordinance or resolution to
propose an ordinance.)".
Sec. 4. (a) The governing body of a school corporation may
impose the local income tax for education on the adjusted gross
income of resident taxpayers residing in the school corporation
effective January 1 of the next year.
(b) To impose the local income tax for education, a governing
body of a school corporation must, after July 1 but before October
1 of the year, pass an ordinance. The ordinance must substantially
state the following:
"The ________ governing body of a school corporation
imposes the local income tax for education on the resident
taxpayers of ________ School Corporation. The local income
tax for education is imposed at a rate of ______ on the
resident taxpayers of the school corporation. This tax takes
effect January 1 of next year.".
Sec. 5. If on July 1 of a calendar year the local income tax for
education rate is in effect for resident taxpayers, the governing
body of a school corporation may after July 1 and before October
1 of that year pass an ordinance to increase the tax rate for
resident taxpayers. If a governing body of a school corporation
passes an ordinance under this section, the local income tax for
education rate for resident taxpayers increases as provided in the
ordinance.
Sec. 6. (a) The local income tax for education imposed by a
governing body of a school corporation under this chapter remains
in effect until rescinded.
(b) Subject to subsection (c), the governing body of a school
corporation may rescind the local income tax for education by
passing an ordinance to rescind the tax after July 1 but before
December 1 of a year.
(c) A governing body of a school corporation may not rescind
the local income tax for education or take any action that would
result in the school corporation having a smaller distributive share
than the distributive share to which it was entitled when it pledged
local income tax for education if the school corporation has
pledged local income tax for education for any purpose permitted
by IC 5-1-14 or any other statute.
Sec. 7. (a) The governing body of a school corporation may
adopt an ordinance to decrease the local income tax for education
rate in effect.
(b) To decrease the local income tax for education rate, the
governing body of a school corporation must adopt an ordinance
after July 1 but before October 1 of a year. The ordinance must
substantially state the following:
"The ______________ governing body of a school corporation
decreases the local income tax for education rate from
_______ percent (___ %) to _______ percent (___ %). This
ordinance takes effect January 1 of next year.".
(c) A governing body of a school corporation may not decrease
the local income tax for education if the school corporation has
pledged the local income tax for education for any purpose
permitted by IC 5-1-14 or any other statute.
(d) An ordinance adopted under this subsection takes effect
January 1 of the calendar year immediately following the calendar
year in which the ordinance is adopted.
Sec. 8. If for any reason a resident taxpayer is subject to
different tax rates for the local income tax for education imposed
by a particular school corporation, the taxpayer's local income tax
for education rate for that school corporation and that taxable year
is the rate determined in the last STEP of the following STEPS:
STEP ONE: Multiply the number of months in the taxpayer's
taxable year that precede January 1 by the rate in effect
before the rate change.
STEP TWO: Multiply the number of months in the taxpayer's
taxable year that follow December 31 by the rate in effect
after the rate change.
STEP THREE: Divide the sum of the amounts determined
under STEPS ONE and TWO by twelve (12).
Sec. 9. If the local income tax for education is not in effect
during a resident taxpayer's entire taxable year, the amount of
local income tax for education that the resident taxpayer owes for
that taxable year equals the product of:
(1) the amount of local income tax for education the resident
taxpayer would owe if the tax had been imposed during the
resident taxpayer's entire taxable year; multiplied by
(2) a fraction, the numerator of which equals the number of
days in the resident taxpayer's taxable year during which the
local income tax for education was in effect, and the
denominator of which equals the total number of days in the
resident taxpayer's taxable year.
Sec. 10. (a) A special account within the state general fund shall
be established for each school corporation that adopts the local
income tax for education. Any revenue derived from the imposition
of the local income tax for education by a school corporation shall
be deposited in that school corporation's account in the state
general fund.
(b) Any income earned on money held in an account under
subsection (a) becomes a part of that account.
(c) Any revenue remaining in an account established under
subsection (a) at the end of a fiscal year does not revert to the state
general fund.
Sec. 11. (a) Revenue derived from the imposition of the local
income tax for education shall, in the manner prescribed by this
section, be distributed to the school corporation that imposed the
tax. The amount that is to be distributed to a school corporation
during an ensuing school year equals the amount of local income
tax for education revenue that the department, after reviewing the
recommendation of the budget agency, estimates will be received
from that school corporation during the twelve (12) month period
beginning January 1 of a calendar year.
(b) Before December 16 of each calendar year, the department,
after reviewing the recommendation of the budget agency, shall
estimate and certify to the county auditor of each adopting school
corporation and the school corporation the amount of local income
tax for education revenue that will be collected from that school
corporation during the twelve (12) month period beginning
January 1 of the next calendar year. The amount certified is the
school corporation's certified distribution for the immediately
succeeding school year beginning on July 1 of the next calendar
year. The amount certified may be adjusted under subsection (c)
or (d).
(c) The department may certify to an adopting school
corporation an amount that is greater than the estimated twelve
(12) month revenue collection if the department, after reviewing
the recommendation of the budget agency, determines that there
will be a greater amount of revenue available for distribution from
the school corporation's account established under section 10 of
this chapter.
(d) The department may certify an amount less than the
estimated twelve (12) month revenue collection if the department,
after reviewing the recommendation of the budget agency,
determines that a part of those collections needs to be distributed
during the current school year so that the school corporation will
receive its full certified distribution for the current school year.
(e) One-twelfth (1/12) of each adopting school corporation's
certified distribution for a school year shall be distributed from its
account established under section 10 of this chapter to the school
corporation on the first day of each month of the school year.
(f) All distributions from an account established under section
10 of this chapter shall be made by warrants issued by the auditor
of state to the treasurer of state ordering the appropriate
payments.
Sec. 12. The revenue a school corporation receives under this
chapter may be used to fund any lawful purpose of the school
corporation and may be deposited in any fund, subject to the
provisions of the school corporation's budget adopted under
IC 21-10. The revenue shall be treated as general money under
IC 21-10.
Sec. 13. For purposes of this chapter, an individual is treated as
a resident of the school corporation in which the individual:
(1) maintains a home, if the individual maintains only one (1)
in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends the
majority of the individual's time spent in Indiana during the
taxable year in question.
Sec. 14. (a) Using procedures provided under this chapter, the
governing body of a school corporation may pass an ordinance to
enter into reciprocity agreements with the taxing authority of any
city, town, municipality, county, or other similar local
governmental entity of any other state. The reciprocity agreements
must provide that the income of resident taxpayers is exempt from
income taxation by the other local governmental entity to the
extent income of the residents of the other local governmental
entity is exempt from the local income tax for education in the
adopting school corporation.
(b) A reciprocity agreement adopted under this section may not
become effective until it is also made effective in the other local
governmental entity that is a party to the agreement.
(c) The form and effective date of a reciprocity agreement
described in this section must be approved by the department.
Sec. 15. (a) Except as provided in subsection (b) and the other
provisions of this chapter, all provisions of the adjusted gross
income tax law (IC 6-3) concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) deductions or exemptions from adjusted gross income;
(5) remittances;
(6) incorporation of the provisions of the Internal Revenue
Code;
(7) penalties and interest; and
(8) exclusion of military pay credits for withholding;
apply to the imposition, collection, and administration of the tax
imposed by this chapter.
(b) IC 6-3-1-3.5(a)(5), IC 6-3-3-3, IC 6-3-3-5, and IC 6-3-5-1 do
not apply to the tax imposed by this chapter.
(c) The tax imposed under this chapter is a listed tax for the
purposes of IC 6-8.1.
(d) Notwithstanding subsections (a) and (b), each employer shall
report to the department and the school corporation the amount of
withholdings attributable to each school corporation. This report
shall be submitted at the same time that the employer submits the
employer's other withholding report to the department.
Sec. 16. (a) Except as provided in subsection (b), if for a
particular taxable year a resident taxpayer is liable for an income
tax imposed by a school corporation located outside Indiana, that
resident taxpayer is entitled to a credit against the local income tax
for education liability for that same taxable year. The amount of
the credit equals the amount of tax imposed by the other
governmental entity on income derived from sources outside
Indiana and subject to the local income tax for education.
However, the credit provided by this section may not reduce a
resident taxpayer's local income tax for education liability to an
amount less than would have been owed if the income subject to
taxation by the other governmental entity had been ignored.
(b) The credit provided by this section does not apply to a
resident taxpayer to the extent that the other governmental entity
provides for a credit to the taxpayer for the amount of local income
tax for education owed under this chapter.
(c) To claim the credit provided by this section, a resident
taxpayer must provide the department with satisfactory evidence
that the taxpayer is entitled to the credit.
Sec. 17. (a) If for a particular taxable year a resident taxpayer
is, or a resident taxpayer and the taxpayer's spouse who file a joint
return are, allowed a credit for the elderly or the totally disabled
under Section 22 of the Internal Revenue Code, the resident
taxpayer is, or the resident taxpayer and the taxpayer's spouse are,
entitled to a credit against the local income tax for education
liability for that same taxable year. The amount of the credit
equals the lesser of:
(1) the product of:
(A) the credit for the elderly or the totally disabled for that
same taxable year; multiplied by
(B) a fraction, the numerator of which is the local income
tax for education rate imposed against the resident
taxpayer, or the resident taxpayer and the taxpayer's
spouse, and the denominator of which is fifteen-hundredths
(0.15); or
(2) the amount of local income tax for education imposed on
the resident taxpayer, or the resident taxpayer and the
taxpayer's spouse.
(b) If a resident taxpayer and the taxpayer's spouse file a joint
return and are subject to different local income tax for education
rates for the same taxable year, they shall compute the credit
under this section by using the formula provided by subsection (a),
except that they shall use the average of the two (2) local income
tax for education rates imposed against them as the numerator in
subsection (a)(1)(B).
Sec. 18. Notwithstanding any other law, if a school corporation
desires to issue obligations, or enter into leases, payable wholly or
in part by the local income tax for education, the obligations of the
school corporation or any lessor may be sold at public sale in
accordance with IC 5-1-11 or at negotiated sale.
SOURCE: IC 8-1-11.1-10; (04)IN1312.1.35. -->
SECTION 35. IC 8-1-11.1-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 10. For the
purpose of raising money to pay all bonds issued as provided in section
8 of this chapter, and the interest thereon, to the extent that moneys are
not available therefor in the judgment of the board of directors for
utilities from the operations of said utility plant or plants so owned by
said city, the board of directors for utilities, as an official board of said
utility district, is hereby empowered to levy, and shall levy each year,
a special tax assessment upon all the property of said utility district in
such manner as to meet and pay the principal of said bonds as they
severally mature, together with all accruing interest thereon. Said board
of directors shall cause said tax special assessment so levied each year
to be certified to the city controller of said city and the auditor of the
county in which said utility district is located, on or before the first day
of October of each year. Such tax so levied and certified special
assessment shall be estimated and entered upon the tax duplicate by
the auditor, and shall be collected and enforced by the county treasurer
in the same manner as state and county taxes are estimated, entered,
collected and enforced; and as such tax is so collected by the county
treasurer, it shall be accumulated and kept in a separate fund to be
known as the "Utility District Bond Fund," and shall be applied to the
payment of the aforesaid utility district bonds and interest as they
severally mature, and for no other purpose whatsoever: Provided, That
all accumulations of said fund prior to their use for the payment of such
bonds and interest shall be deposited, at interest, with the depository or
depositories of other public funds in such city, and all interest collected
thereon shall belong to such fund.
SOURCE: IC 8-1-11.1-11; (04)IN1312.1.36. -->
SECTION 36. IC 8-1-11.1-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 11. Within sixty
(60) days after the end of each calendar year, if there be at any time any
bonds outstanding issued on account of said utility district, payable in
whole or in part through a tax levy against the property in said utility
district, said board of directors for utilities shall cause any surplus
earnings arising from the operation of any such utility property, which
are not pledged to secure the payment of any obligation of, or on
account of said utility district, and which are not, in the opinion of such
board of directors, necessary to provide against possible unfavorable
results from operation, or to provide for contemplated betterments,
extensions, improvements, or additions, to be paid over to the county
treasurer and to be added to and become a part of said utility district
bond fund, and to be used for the same purposes and in the same
manner as funds derived from levy of taxes, special assessments, as in
this chapter hereinbefore provided. In event there are no such utility
district bonds at the time outstanding, any such surplus operating
revenues not needed for the purposes aforesaid shall be paid over to
and become a part of the general funds of such city.
SOURCE: IC 8-1.5-2-26; (04)IN1312.1.37. -->
SECTION 37. IC 8-1.5-2-26 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 26. (a) To pay the
principal and interest on bonds issued for the construction, acquisition,
extension, or improvement of a municipally owned utility, the
municipal legislative body may levy an annual tax of sufficient amount
on all taxable property of the municipality.
(b) If the legislative body:
(1) has contracted with a person for supplying utility services or
has agreed to lease or purchase utility services; and
(2) has, in the contract, agreed to pay a stated rental, a stipulated
purchase price, or other compensation to the person, or has issued
bonds to pay for stock in the company or to purchase the plant;
it may levy an annual tax special assessment for payment of the rent
or other consideration or purchase price to be paid for utility services,
or for the purchase price of a plant, and to pay the principal and interest
on the bonds.
(c) The tax under this section shall be levied and collected as other
municipal taxes are levied and collected, and the proceeds shall be
used only for the purpose for which the tax was levied.
SOURCE: IC 8-1.5-4-19; (04)IN1312.1.38. -->
SECTION 38. IC 8-1.5-4-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 19. (a) To raise
the necessary revenues to pay for the bonds issued, and interest on the
bonds, the board:
(1) may levy a special benefit tax assessment upon all the
property of the waterworks district in the amount necessary to
meet and pay the principal of the bonds as they severally mature,
together with all accruing interest; and
(2) shall certify the tax special assessment levied each year to the
fiscal officers of the municipality and of the county in which the
waterworks district is located, at the same time the levy of the
municipality is certified.
The tax special assessment levied and certified shall be estimated and
entered upon the tax duplicate and shall be collected and enforced in
the same manner as state and county taxes are estimated, entered,
collected, and enforced.
(b) In fixing the amount of the necessary levy, special assessment,
the board:
(1) shall consider the amount of revenues derived by the board
from the operation of the waterworks plant and system under its
jurisdiction above the amount of revenues required to pay the cost
of operation and maintenance of the waterworks plant and system;
and
(2) may, in lieu of making the levy special assessment in this
section, set aside, by resolution, a specific amount of the surplus
revenues to be collected before maturity of the principal and
interest of the bonds payable in the following calendar year.
(c) The special tax assessments shall be accumulated and kept in a
separate fund to be known as the "waterworks district bond fund", and
applied to the payment of the district bonds and interest as they
severally mature and are payable. All accumulations in the fund before
their use for the payment of bonds and interest shall be deposited at
interest with the depository of other public funds of the municipality,
and all interest collected belongs to that fund.
(d) If the board adopts the resolution, the board may not use any part
of the amount set aside out of its net revenues for any purpose other
than the monthly payment of the bonds and interest to the sinking fund.
Any amount of net revenues derived from the operation of the
waterworks plant and system under the jurisdiction of the board, not
required for the payment of the principal and interest on the
outstanding waterworks district bonds, shall be paid over to the
municipality and deposited in the sinking fund established for the
purpose of redeeming and retiring outstanding bonds that the
municipality may have issued for the benefit of its waterworks plant.
This section does not relieve the municipality from the obligation to
pay outstanding bonds according to their terms and conditions.
SOURCE: IC 8-1.5-5-5; (04)IN1312.1.39. -->
SECTION 39. IC 8-1.5-5-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 5. (a) The
legislative body shall, in the ordinance adopting the provisions of this
chapter, create a special taxing district that includes the following:
(1) For a consolidated city, all of the territory of the county
containing the consolidated city.
(2) For all other municipalities, all territory within the corporate
boundaries of the municipality.
(b) As to each municipality to which this chapter applies, including
a consolidated city, all the territory within the district constitutes a
special taxing district for the purpose of providing for the collection
and disposal of storm water of the district in a manner that protects the
public health and welfare and for the purpose of levying special benefit
taxes for purposes of storm water collection and disposal. All area in
the district and all area added to the district is considered to have
received a special benefit from the storm water collection and disposal
facilities of the district equal to or greater than the special taxes
assessments imposed on the area by this chapter in order to pay all or
part of the costs of such facilities.
SOURCE: IC 8-1.5-5-22; (04)IN1312.1.40. -->
SECTION 40. IC 8-1.5-5-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 22. (a) To raise
the necessary revenues to pay for the bonds issued and the interest on
the bonds, the board:
(1) after approval by the legislative body of the municipality, shall
levy a special benefit tax assessments upon all the property of the
storm water district in the amount necessary to meet and pay the
principal of the bonds as they severally mature, together with all
accruing interest; and
(2) shall certify the tax special assessment levied each year to the
fiscal officers of the municipality and of the county in which the
storm water district is located, at the same time the levy taxes of
the municipality is are certified.
The tax special assessment levied and certified shall be estimated and
entered upon the tax duplicate and shall be collected and enforced in
the same manner as state and county taxes are estimated, entered, and
enforced.
(b) In fixing the amount of the necessary levy, special assessment,
the board:
(1) shall consider the amount of revenues derived by the board
from the operation of the storm water system under its jurisdiction
above the amount of revenues required to pay the cost of
operation and maintenance of the storm water system; and
(2) may, in lieu of making the levy special assessment in this
section, set aside by resolution a specific amount of the surplus
revenues to be collected before maturity of the principal and
interest of the bonds payable in the following calendar year.
(c) The special tax assessments shall be deposited in the bond and
interest redemption account.
SOURCE: IC 8-1.5-5-23; (04)IN1312.1.41. -->
SECTION 41. IC 8-1.5-5-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 23. (a) The board
may not issue any bonds authorized by this chapter until it has secured
the approval for the issuance of the bonds from the legislative body of
the municipality.
(b) IC 6-1.1-20 applies and IC 36-3.1 apply to the issuance of
bonds under this chapter which are or may be payable from the special
benefit property tax. assessments.
SOURCE: IC 8-6-2.1-19; (04)IN1312.1.42. -->
SECTION 42. IC 8-6-2.1-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 19. Any part of
the city's portion of the total cost of the improvement which is
necessary for the city to pay prior to the collection of benefit
assessments under this chapter and prior to the issue and sale of bonds
under this chapter, shall be paid as follows: the board shall, from time
to time, certify the items of expense to the controller or clerk-treasurer,
directing him to pay those amounts, and the controller or
clerk-treasurer shall draw his warrant or warrants, and the warrant or
warrants shall be paid out of the general fund of the city without
appropriation being made by the common council; or, in case there is
no money in the general fund of the city not otherwise appropriated, the
city controller or clerk-treasurer shall recommend to the common
council the temporary transfer from other funds of the city a sufficient
amount to meet the items of expense, or the making of a temporary loan
for this purpose, and the common council shall at once make the
transfer of funds, or authorize the temporary loan in the same manner
that other temporary loans are made by the city. The fund or funds of
the city from which the payments are made shall be fully reimbursed
and repaid by the board out of the special fund created by the sale of
bonds and from benefit assessments or out of funds coming to the city
from equitable settlements between the parties. The board may cause
the amount for the temporary advancements on work to be provided for
in the budget and tax levy of the city for the year when the funds are
anticipated to be needed.
SOURCE: IC 8-6-2.1-29; (04)IN1312.1.43. -->
SECTION 43. IC 8-6-2.1-29 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 29. (a) In order to
raise money to pay the city's portion of the total cost of an improvement
and in anticipation of the special benefit tax assessments to be levied,
the board shall issue, in the name of the city, at one (1) time, or from
time to time as the proceeds are needed, the bonds of the grade
separation or railroad relocation and reconstruction district not to
exceed in aggregate amount the balance of the city's portion of the total
cost after deducting from the city's portion the total amount of benefits,
if any, which have been assessed by the board and finally confirmed or
adjudged against lots and parcels of land exclusive of improvements
lying within two thousand (2,000) feet of any grade crossing eliminated
or altered by the improvement, or within two thousand (2,000) feet of
any lands or rights-of-way abandoned in whole or in part for railroad
use or from which railroad facilities are to be removed.
(b) The bonds may be issued in any denomination not exceeding one
thousand dollars ($1,000) each in not less than forty (40) nor more than
sixty (60) equal series, as the board determines, and shall be payable
one (1) series each six (6) months beginning on the first day of July of
the first year following the date of their issue. If the bond issue is
ordered in any calendar year after the date of the annual tax levy, then
the first series shall mature on the first day of July of the second year
and the balance of the bonds at the designated regular intervals. The
bonds shall be negotiable as inland bills of exchange and shall bear
interest payable on the first days of January and July of each year, the
first interest to be payable on the first maturity date of the bonds.
(c) Upon adoption of a resolution ordering bonds, the board shall
certify a copy of the resolution to the controller or clerk-treasurer of the
city in which the grade separation district is located; that officer shall
prepare the bonds, and the mayor of the city shall execute the bonds
and the city controller or clerk-treasurer shall attest the execution. The
bonds shall be exempt from taxation for all purposes. All bonds issued
by the board shall be sold by the city controller or clerk-treasurer to the
highest bidder, but not at less than par and accrued interest to date of
delivery, after giving notice of sale of the bonds by publication in
accordance with IC 5-3-1. The publication shall be made not less than
fifteen (15) days prior to the date fixed for the sale of the bonds.
(d) The bonds are not a corporate obligation or indebtedness of the
city, but constitute an indebtedness of the district as a special taxing
district, and the bonds and interest shall be payable only out of a
special tax assessments levied upon all property of the special taxing
district, as in this chapter provided, and the bonds shall recite the terms
upon their face, together with the purposes for which they are issued.
(e) No suit to question the validity of the bonds issued for the
special taxing district, or to prevent their issue, may be maintained after
the date set for the sale of the bonds, and all bonds after that date are
incontestable for any cause.
SOURCE: IC 8-6-2.1-31; (04)IN1312.1.44. -->
SECTION 44. IC 8-6-2.1-31 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 31. (a) In order to
raise money to pay all bonds issued under section 29 of this chapter,
including interest, the common council of the city shall levy each year
a special tax assessment upon all of the taxable property, both real and
personal, located within the territorial limits of the special taxing
district, in such manner as to pay the principal of the bonds as they
severally mature, together with all accruing interest.
(b) The tax special assessment levied shall be collected by the
county treasurer in the same manner as other taxes are collected. As the
tax special assessment is distributed to the controller or clerk-treasurer
it shall be deposited in a separate fund, to be known as the grade
separation or railroad relocation and reconstruction bond fund, and
shall be applied to the payment of the special taxing district bonds and
interest as they severally mature, and to no other purposes. All
accumulation of the fund prior to its use for the payment of the bonds
and interest shall be deposited in the depository or depositories of other
public funds in the city.
SOURCE: IC 8-9.5-7-17; (04)IN1312.1.45. -->
SECTION 45. IC 8-9.5-7-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 17. (a) This
section provides for the assessment of benefits and damages to property
within the automated transit district. For the purpose of providing all
or part of the cost of payment of principal and interest on bonded
indebtedness, and expenses of planning, construction, operation,
maintenance, and repair of the automated transit system and related
parking facilities and services after the completion of the same,
including as a part of such cost the general expenses of the
commission, the commission may make an annual assessment of
benefits and damages. The assessment shall be against the site value of
the lands only.
(b) The commission shall annually prepare a schedule which
describes each tract of land in the district that it determines to be
benefited by the automated transit system, and states the percentage of
the total benefit that is received by each tract of land. In order to
prepare this schedule, the commission shall appoint three (3) persons,
who are licensed real estate brokers, as appraisers to make an
examination of the property within the improvement district. Upon
request from the appraisers, the commission may retain or employ
qualified personnel to render any necessary technical or consulting
assistance, and may supply the appraisers with any information
available or obtainable which will assist in making the assessment.
Upon such examination, such appraisers shall make an assessment of
all special benefits and damages, if any, which will accrue from the
construction and operation of the automated transit system, as to each
parcel of real estate. All property within the district (or owned or
operated by the district), except common green areas, shall be
conclusively presumed to be benefited by the existence of the district
to the extent determined under this section as its assessed benefit. A
copy of the roll of all owners of real estate, signed by all three (3)
appraisers, showing the assessment of benefits and damages, if any,
shall be filed by the appraisers with the commission not less than thirty
(30) days after their appointment, unless the commission shall extend
the time.
(c) Promptly after the filing of an assessment, the commission shall
cause a notice to be mailed, by United States mail, first class postage
prepaid, to each owner of real estate to be assessed. The notices shall
be deposited in the mail twenty-one (21) days before the hearing date,
shall set forth the amount of the proposed assessment, shall state that
the proposed assessments on each parcel of real estate in the district are
on file and can be seen in the office of the commission, and shall set
forth the date when the commission will, at its office, receive written
remonstrances against the assessment on the parcel and hear all owners
of real estate assessed who have filed written remonstrances prior to
the date fixed for the hearing. It shall be sufficient if the notices to the
owners are addressed as the names and addresses appear upon the tax
duplicates in the records of the county auditor.
(d) At the time so fixed in such notice, the commission shall hear all
owners of real estate assessed who have filed written remonstrances
prior to the date of the hearing. The hearing may be continued from
time to time as long as may be necessary to hear such owners.
(e) The commission shall complete such assessment roll by
rendering its decision by increasing, or decreasing, or by confirming
each assessment by setting opposite each name, parcel and appraisers'
assessment, the amount of the assessment as determined by the
commission. If the total of the assessments exceeds the amount needed,
the commission shall further make pro rata reduction in each
assessment. The signing of such roll by a majority of the commission
members, and the delivery thereof to the fiscal officer of the city shall
constitute a final and conclusive determination of the benefits or
damages, if any, assessed. However, any owner who had previously
filed a written remonstrance as provided in this section with the board
or any owner whose assessment was increased above the amount fixed
by the appraisers, whether he filed such a written remonstrance or not,
may appeal. Such appeal shall be taken as provided in IC 34-13-6, and
shall proceed to trial, hearing, and final judgment in the manner and
with the effect as provided in IC 34-13-6 as to all parties.
(f) If the final determination of the commission results in the total
funds being inadequate to cover the cost of the improvement, the
deficiency may be supplied by other sources as provided in this
chapter.
(g) Each special assessment shall be a lien on the real estate
assessed, second only to taxes levied on such property.
(h) The commission shall annually transmit to the county auditor the
schedule of assessment of benefits. The county auditor shall enter the
assessment of benefits on the tax duplicates, and the county treasurer
shall collect and enforce the amount of the assessed benefit in the same
manner as property taxes are entered, collected, and enforced.
(i) The county treasurer charged with the duty of collecting such
taxes shall, between the first and tenth days of each month, notify the
commission of the amount of such special taxes collected during the
preceding month, and upon the date of notification above referred to
such county treasurer shall credit the amount so collected to a fund of
such district to be designated as the "____________________
Automated Transit District Fund", and such fund shall be used and
expended for no other purpose than as stated in this section. The
commission shall have full, complete, and exclusive authority to
expend for and on behalf of the district all sums of money thus realized.
The commission may, by resolution, authorize and make temporary
loans in anticipation of the collection of the special benefit taxes
actually levied and in the course of collection under this section, which
loans shall mature and be paid within the year in which made, and shall
bear interest payable at the maturity of the loan. Such temporary loans
shall be evidenced by warrants.
SOURCE: IC 8-10-5-17; (04)IN1312.1.46. -->
SECTION 46. IC 8-10-5-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 17. (a) The board
of directors of any port authority may, by resolution, recommend to any
municipal corporation or county that a cumulative channel
maintenance fund be established under IC 6-1.1-41 to provide funds for
dredging channels, cleaning channels and shores of debris and any
other pollutants, and providing or repairing of bulkheads, pilings,
docks, and wharves, and the purchase and development of land
adjoining channels within the jurisdiction of the port authority and
which land is necessary to the fulfillment of the plan adopted by the
port authority for the future development, construction, and
improvement of its facilities. The purchased and developed land shall
be available to the residents of the taxing district without further
charge.
(b) A county, city, or town fiscal body may appropriate an
amount to provide for the cumulative channel maintenance fund. a
county, city, or town fiscal body may levy a tax in compliance with
IC 6-1.1-41 not to exceed three and thirty-three hundredths cents
($0.0333) on each one hundred dollars ($100) on all taxable property
within the county, town, or city.
(c) The tax, when collected, shall be held in a special fund to be
known as the cumulative channel maintenance fund.
SOURCE: IC 8-16-2-7; (04)IN1312.1.47. -->
SECTION 47. IC 8-16-2-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 7. For the purpose
of raising money to pay said bonds and interest thereon, as provided in
this chapter, the proper officers of every county issuing bonds under
authority of this chapter shall, as soon as said bonds are sold and
annually thereafter at the time the general tax levy is made, levy a tax,
in addition to all other taxes authorized by law to be levied by such
county, upon the property within said county subject to taxation, in
such manner as to meet the principal and interest of said bonds as they
become due, and such tax shall be levied and collected as other taxes
are levied and collected, and shall be applied to the payment of such
bonds and interest provided, that if any other funds provided by law for
the payment of said bonds and interest shall come to the hands of the
proper officer of said county and be available for payment on said
bonds and interest, the tax in this section provided for may be abated
to the extent only that such other funds provided by law may be
actually available for payment of such bonds and interest at the time for
making any such annual tax levy. impose a tax under IC 6-3.5-9.
SOURCE: IC 8-16-3-3; (04)IN1312.1.48. -->
SECTION 48. IC 8-16-3-3, AS AMENDED BY P.L.90-2002,
SECTION 322, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 3. (a) County executives and
municipal legislative bodies may appropriate money to provide for
the cumulative bridge fund. county executives and municipal
legislative bodies may levy a tax in compliance with IC 6-1.1-41 not to
exceed ten cents ($0.10) on each one hundred dollars ($100) assessed
valuation of all taxable personal and real property within the county or
municipality.
(b) The tax, when collected, shall be held in a special fund to be
known as the bridge fund.
(c) An appropriation from the bridge fund may be made without the
approval of the department of local government finance if:
(1) the county executive requests the appropriation; and
(2) the appropriation is for the purpose of constructing,
maintaining, or repairing bridges, approaches, or grade
separations.
SOURCE: IC 8-16-3.1-4; (04)IN1312.1.49. -->
SECTION 49. IC 8-16-3.1-4, AS AMENDED BY P.L.178-2002,
SECTION 78, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 4. (a) The executive of any eligible county
may provide a major bridge fund. in compliance with IC 6-1.1-41 to
make available funding for the construction of major bridges.
(b) The executive of any eligible county may levy a tax in
compliance with IC 6-1.1-41 not to exceed three and thirty-three
hundredths cents ($0.0333) on each one hundred dollars ($100)
assessed valuation of all taxable personal and real property within the
county to provide for the major bridge fund.
SOURCE: IC 8-16-3.5-1; (04)IN1312.1.50. -->
SECTION 50. IC 8-16-3.5-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1. (a) A county
may lease a bridge and pay the lease rental from the cumulative bridge
fund. and levy under IC 8-16-3.
(b) A contract of lease may not be entered into unless there is first
filed with the county executive a petition for a longer lease, signed by
fifty (50) or more taxpaying citizens of the county, and the county
executive has, after investigation, determined that a need exists for the
bridge. The total annual dollar obligation under all contracts of lease
for bridges made by a county may not exceed the county's estimated
annual revenue from a cumulative bridge fund levy of twenty cents
($0.20) on each one hundred dollars ($100) on all taxable personal and
real property within the county.
SOURCE: IC 8-18-22-6; (04)IN1312.1.51. -->
SECTION 51. IC 8-18-22-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 6. (a) Except as
provided in subsection (b), the county fiscal body may pledge revenues
for the payment of principal and interest on the bonds and for other
purposes under the ordinance as provided by IC 5-1-14-4, including
revenues from the following sources:
(1) The motor vehicle highway account.
(2) The local road and street account.
(3) The county motor vehicle excise surtax.
(4) The county wheel tax.
(5) The county adjusted gross income tax.
(6) The county option income tax.
(7) The economic development income tax.
(8) Assessments.
(9) Any other unappropriated or unencumbered money.
(b) The county fiscal body may not pledge to levy ad valorem
property taxes for these purposes. except for revenues from the
following:
(1) IC 8-16-3.
(2) IC 8-16-3.1.
(c) If the county fiscal body has pledged revenues from the county
option income tax as set forth in subsection (a), the county income tax
council (as defined in IC 6-3.5-6-1) may covenant that the council will
not repeal or modify the tax in a manner that would adversely affect
owners of outstanding bonds issued under this chapter. The county
income tax council may make the covenant by adopting an ordinance
using procedures described in IC 6-3.5-6.
(d) If the county fiscal body has pledged revenues from the
economic development income tax as set forth in subsection (a), the
county income tax council (if the council is the body that imposed the
tax) may covenant that the council will not repeal or modify the tax in
a manner that would adversely affect owners of outstanding bonds
issued under this chapter. The county income tax council may make the
covenant by adopting an ordinance using procedures described in
IC 6-3.5-6.
SOURCE: IC 8-18-22-14; (04)IN1312.1.52. -->
SECTION 52. IC 8-18-22-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 14. IC 6-1.1-20
does and IC 21-10 or IC 36-1.3 (as appropriate) do not apply to the
issuance of bonds under this chapter.
SOURCE: IC 8-22-2-4; (04)IN1312.1.53. -->
SECTION 53. IC 8-22-2-4, AS AMENDED BY P.L.137-2000,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 4. The board shall choose, annually, at its
first regular meeting in January, one (1) of its members president, and
another of its members vice president to perform the duties of the
president during the absence or disability of the president. The eligible
entity shall provide a suitable office for the board in the entity, or, at
the option of the board, at the airport, at the expense of the department
of aviation, where its maps, plans, documents, records, and accounts
shall be kept, subject to public inspection at all reasonable times.
Before February 2 each year the board shall make a report to the
executive of its proceedings with a full statement of its receipts and
disbursements for the preceding year, including a report of the
acquisition of air navigation facilities and of other property that has
come under the control of the board, improvements made, general
character of the work of the board, and progress of aviation and air
commerce under its control. Money received by the board shall be paid
into the entity's treasury and credited to the department of aviation, and
all expenditures relating to the property and business under the control
of the department, except as otherwise provided, may be provided for
by special levy of taxes under section 7 of this chapter, and shall be
paid from the entity's treasury when ordered by the board. A majority
of the members constitutes a quorum, and an action of the board must
be taken by a majority of the members at a regular or duly called
special meeting. In case of a tie vote on any question, the executive
shall decide. The board shall fix a time for holding regular meetings.
Regular or special meetings shall be held at the office of the board or
at another public place in any county where the board owns or operates
an airport. Special meetings of the board may be called at any time by
its president, or by any two (2) of its members, upon a written request
to the secretary. Whenever in the opinion of the president or of any two
(2) members, a special meeting is necessary, he or they shall cause the
secretary to notify the members by mailing written notice of the time
of the meeting, at least one (1) day before the meeting. A member may
waive notice in writing and the presence of a member at a special
meeting is considered a waiver of notice.
SOURCE: IC 8-22-2-7; (04)IN1312.1.54. -->
SECTION 54. IC 8-22-2-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 7. (a) The board
may, in the name of the eligible entity, take action to recover damages
for the breach of an agreement, express or implied, relating to the
operation, control, leasing, management, or improvement of the
property under its control, to impose the penalties for the violation of
ordinances of the entity or of its rules or regulations, and for injury to
the personal or real property under its control, and to recover
possession of any such property. All rules and regulations that the
board adopts under this chapter shall be published in accordance with
IC 5-3-1.
(b)
In addition to other taxes of the eligible entity, A tax may be
levied
under IC 6-3.5-9 annually by the fiscal body for aviation
purposes, and the entity's treasurer shall collect the taxes as other taxes
are collected. When the taxes are collected they shall be deposited in
the treasury of the entity in a separate fund known as the "aviation
fund". Only one (1) tax levy for aviation purposes may be imposed
upon the assessed property in a county, city, or town unless that unit
approves by ordinance the levy of more than one (1) tax for aviation
purposes. The fiscal body of the entity may appropriate and transfer to
the aviation fund any sum or sums out of the general funds of the
entity, in accordance with statutes providing for additional
appropriations for the entities, and the fiscal body may borrow money
and issue bonds of the entity for aviation purposes and shall turn the
proceeds from the bonds into the aviation fund of the entity.
(c) The board of aviation commissioners shall prepare and file with
the executive of the eligible entity annually, at the time the executive
designates, a full and detailed estimate of the appropriations required
during the ensuing year for the maintenance and operation of the
airports and landing fields showing the number of employees,
including manager and secretary, and the amount of salary and wages
recommended for each. Expenditures for the maintenance and
operation of the airports or landing fields are limited to the
appropriations of money made in advance by the fiscal body upon
furnished estimates. Purchases and expenditures shall be made and
allowable claims shall be paid by the board in the same manner as
provided for the allowance of other claims against the entity. The fiscal
body of the entity may appropriate a sufficient amount for the help,
supplies, and equipment necessary for the equipment and maintenance
of the airports or landing fields. The fiscal body of the entity may
appropriate a sufficient amount as a rotary fund to be used by the board
for the purchase of fuels and lubricants to be sold to the general public
in the operation of the airport. All funds received from the sale of fuels
and lubricants purchased with funds from a rotary fund shall be turned
over at least once a month to the treasurer of the entity to remain in the
rotary fund to be checked against by the board as other appropriations
are disbursed, for the sole purpose of purchasing fuels and lubricants
for sale to the public in the operation of the airport. At the end of each
fiscal year, the board shall make a detailed statement to the fiscal body
showing the amount of money received and paid over to the treasurer
to the credit of the rotary fund and also showing the amount of fuels
and lubricants on hand. If at the end of a fiscal year the accumulated
rotary fund plus value of inventory of fuels and lubricants on hand
exceeds the total previous appropriation to the fund by twenty-five
percent (25%), the excess shall be turned over to the aviation fund. The
board may incur obligations or liability of any sort on behalf of the
entity only if it falls within the appropriation specifically made for that
purpose. All money remaining in the treasury to the credit of the board
at the end of the calendar year belongs to the general aviation fund to
be used by the board for aviation purposes. All funds received by the
board from whatever source, except funds received from the sale of
fuels and lubricants purchased by funds from the rotary fund, shall be
deposited in the treasury of the entity to the credit of the aviation fund.
(d) The board may create a reserve or depreciation account for the
purpose of capital improvements or replacements out of operating
profits from the operation of the airport.
SOURCE: IC 8-22-2-14; (04)IN1312.1.55. -->
SECTION 55. IC 8-22-2-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 14. Eligible
entities may jointly acquire, construct, develop, improve, equip, or
extend airports or property to be used for aviation purposes and
maintain, operate, manage, and control it and levy and collect taxes
under IC 6-3.5-9 for this purpose. Two (2) or more entities may
cooperate for this purpose by contributing to the total cost and sharing
the benefits and bearing the obligations accruing from it on terms that
they agree upon and evidence by contract. The joint activity is subject
to the same provisions and requirements provided for such activity if
carried on by any one (1) of the entities individually, except that the
joint board of aviation commissioners may be composed of more than
four (4) but not more than seven (7) members and the maximum
allowance may be increased correspondingly. In case of failure of
agreement between two (2) or more entities upon petition filed by one
(1) or more of the entities involved, the aeronautics commission of
Indiana, after investigation and hearing, shall determine and prescribe
reasonable and equitable participation including representation on the
joint governing board and shall prescribe other rules and regulations as
necessary.
SOURCE: IC 8-22-3-10; (04)IN1312.1.56. -->
SECTION 56. IC 8-22-3-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 10. (a) A member
of the board may introduce a draft of a proposed ordinance at a meeting
of the board. A person who introduces a draft shall provide at the time
of introduction a written copy of the draft. The board shall assign to
each draft a distinguishing number and the date when introduced.
(b) Not more than seven (7) days after the introduction of a draft of
an ordinance nor less than seven (7) days before the final passage of a
draft of an ordinance, the board shall publish a notice that the proposed
ordinance is pending final action by the board. The notice shall be
published in each county within the jurisdiction of the board in
accordance with IC 5-3-1. Notice of an ordinance establishing a budget
must be in accordance with IC 6-1.1-17,
IC 21-10, or IC 36-1.3 (as
appropriate).
(c) The board shall include in the notice reference to the subject
matter of the proposed ordinance and the time and place a hearing will
be had and shall indicate that the proposed ordinance is available for
public inspection at the office of the board. The board may include in
one (1) notice a reference to the subject matter of each draft that is
pending and for which notice has not already been given.
(d) An ordinance is not invalid because the reference to the subject
matter of the draft was inadequate if it was sufficient to advise the
public of the general subject matter of the proposed ordinance.
(e) The board shall, not later than the date of notice, place five (5)
copies of the proposed draft on file in the office of the board for public
inspection.
(f) At a meeting for which notice has been given as required by this
section, the board may take final action on the proposed ordinance or
may postpone final consideration of it to a designated meeting in the
future without giving additional notice.
(g) Before adopting an ordinance, the board must give an
opportunity to persons present at the meeting to give testimony,
evidence, or argument for or against the proposed ordinance in person
or by counsel, under reasonable rules as to the number of persons who
may be heard and time limits that the board adopts.
(h) When an ordinance is adopted, the board shall also designate the
effective date of the ordinance. If the board fails to designate the
effective date of the ordinance in the record of the proceedings of the
board, the ordinance takes effect on the fourteenth day after its passage.
(i) When the board adopts an ordinance, the board shall have copies
of it made available to the public.
(j) The board may provide for the printing of the ordinances of the
authority in pamphlet form or for bound volumes and may distribute
them without charge, or may charge the cost of printing and
distribution.
SOURCE: IC 8-22-3-11; (04)IN1312.1.57. -->
SECTION 57. IC 8-22-3-11, AS AMENDED BY P.L.98-2001,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 11. The board may do all acts necessary or
reasonably incident to carrying out the purposes of this chapter,
including the following:
(1) As a municipal corporation, to sue and be sued in its own
name.
(2) To have all the powers and duties conferred by statute upon
boards of aviation commissioners. The board supersedes all
boards of aviation commissioners within the district. The board
has exclusive jurisdiction within the district.
(3) To protect all property owned or managed by the board.
(4) To adopt an annual budget and levy taxes
i
n accordance with
this chapter.
(A) The board may not levy taxes on property in excess of the
following rate schedule, except as provided in sections 17 and
25 of this chapter:
Total Assessed Rate Per $100 Of
Property Valuation Assessed Valuation
$300 million or less $0.10
More than $300 million
but not more than $450 million $0.0833
More than $450 million
but not more than $600 million $0.0667
More than $600 million
but not more than $900 million $0.05
More than $900 million $0.0333
(B) Clause (A) does not apply to an authority that was
established under IC 19-6-2 or IC 19-6-3 (before their repeal on
April 1, 1980).
(C) The board of an authority that was established under
IC 19-6-3 (before its repeal on April 1, 1980) may levy taxes on
property not in excess of six and sixty-seven hundredths cents
($0.0667) on each one hundred dollars ($100) of assessed
valuation. under IC 6-3.5-9.
(5) To incur indebtedness in the name of the authority in
accordance with this chapter.
(6) To adopt administrative procedures, rules, and regulations.
(7) To acquire property, real, personal, or mixed, by deed,
purchase, lease, condemnation, or otherwise and dispose of it for
use or in connection with or for administrative purposes of the
airport; to receive gifts, donations, bequests, and public trusts and
to agree to conditions and terms accompanying them and to bind
the authority to carry them out; to receive and administer federal
or state aid; and to erect buildings or structures that may be needed
to administer and carry out this chapter.
(8) To determine matters of policy regarding internal organization
and operating procedures not specifically provided for otherwise.
(9) To adopt a schedule of reasonable charges and to collect them
from all users of facilities and services within the district.
(10) To purchase supplies, materials, and equipment to carry out
the duties and functions of the board in accordance with
procedures adopted by the board.
(11) To employ personnel that are necessary to carry out the duties,
functions, and powers of the board.
(12) To establish an employee pension plan. The board may, upon
due investigation, authorize and begin a fair and reasonable
pension or retirement plan and program for personnel, the cost to
be borne by either the authority or by the employee or by both, as
the board determines. If the authority was established under
IC 19-6-2 (before its repeal on April 1, 1980), the entire cost must
be borne by the authority, and ordinances creating the plan or
making changes in it must be approved by the mayor of the city.
The plan may be administered and funded by a trust fund or by
insurance purchased from an insurance company licensed to do
business in Indiana or by a combination of them. The board may
also include in the plan provisions for life insurance, disability
insurance, or both.
(13) To sell surplus real or personal property in accordance with
law. If the board negotiates an agreement to sell trees situated in
woods or forest areas owned by the board, the trees are considered
to be personal property of the board for severance or sale.
(14) To adopt and use a seal.
(15) To acquire, establish, construct, improve, equip, maintain,
control, lease, and regulate municipal airports, landing fields, and
other air navigation facilities, either inside or outside the district;
to acquire by lease (with or without the option to purchase)
airports, landing fields, or navigation facilities, and any structures,
equipment, or related improvements; and to erect, install,
construct, and maintain at the airport or airports facilities for the
servicing of aircraft and for the comfort and accommodation of air
travelers and the public. The Indiana department of transportation
must grant its approval before land may be purchased for the
establishment of an airport or landing field and before an airport or
landing field may be established.
(16) To fix and determine exclusively the uses to which the airport
lands may be put. All uses must be necessary or desirable to the
airport or the aviation industry and must be compatible with the
uses of the surrounding lands as far as practicable.
(17) To elect a secretary from its membership, or to employ a
secretary, an airport director, superintendents, managers, a
treasurer, engineers, surveyors, attorneys, clerks, guards,
mechanics, laborers, and all employees the board considers
expedient, and to prescribe and assign their respective duties and
authorities and to fix and regulate the compensation to be paid to
the persons employed by it in accordance with the authority's
appropriations. All employees shall be selected irrespective of their
political affiliations.
(18) To make all rules and regulations, consistent with laws
regarding air commerce, for the management and control of its
airports, landing fields, air navigation facilities, and other property
under its control.
(19) To acquire by lease the use of an airport or landing field for
aircraft pending the acquisition and improvement of an airport or
landing field.
(20) To manage and operate airports, landing fields, and other air
navigation facilities acquired or maintained by an authority; to
lease all or part of an airport, landing field, or any buildings or
other structures, and to fix, charge, and collect rentals, tolls, fees,
and charges to be paid for the use of the whole or a part of the
airports, landing fields, or other air navigation facilities by aircraft
landing there and for the servicing of the aircraft; to construct
public recreational facilities that will not interfere with air
operational facilities; to fix, charge, and collect fees for public
admissions and privileges; and to make contracts for the operation
and management of the airports, landing fields, and other air
navigation facilities; and to provide for the use, management, and
operation of the air navigation facilities through lessees, its own
employees, or otherwise. Contracts or leases for the maintenance,
operation, or use of the airport or any part of it may be made for a
term not exceeding fifteen (15) years and may be extended for
similar terms of years, except that any parcels of the land of the
airport may be leased for any use connected with the operation and
convenience of the airport for an initial term not exceeding forty
(40) years and may be extended for a period not to exceed ten (10)
years. If a person whose character, experience, and financial
responsibility has been determined satisfactory by the board offers
to erect a permanent structure that facilitates and is consistent with
the operation, use, and purpose of the airport on land belonging to
the airport, a lease may be entered into for a period not to exceed
ninety-nine (99) years. However, the board must pass an ordinance
to enter into such a lease. The board may not grant an exclusive
right for the use of a landing area under its jurisdiction. However,
this does not prevent the making of leases in accordance with other
provisions of this chapter. All contracts and leases are subject to
restrictions and conditions that the board prescribes. The authority
may lease its property and facilities for any commercial or
industrial use it considers necessary and proper, including the use
of providing airport motel facilities.
(21) To sell machinery, equipment, or material that is not required
for aviation purposes. The proceeds shall be deposited with the
treasurer of the authority.
(22) To negotiate and execute contracts for sale or purchase, lease,
personal services, materials, supplies, equipment, or any other
transaction or business relative to an airport under the board's
control and operation. However, whenever the board determines to
sell part or all of aviation lands, buildings, or improvements owned
by the authority, the sale must be in accordance with law.
(23) To vacate all or parts of roads, highways, streets, or alleys,
whether inside or outside the district, in the manner provided by
statute.
(24) To annex lands to itself if the lands are owned by the authority
or are streets, roads, or other public ways.
(25) To approve any state, county, city, or other highway, road,
street or other public way, railroad, power line, or other
right-of-way to be laid out or opened across an airport or in such
proximity as to affect the safe operation of the airport.
(26) To construct drainage and sanitary sewers with connections
and outlets as are necessary for the proper drainage and
maintenance of an airport or landing field acquired or maintained
under this chapter, including the necessary buildings and
improvements and for the public use of them in the same manner
that the authority may construct sewers and drains. However, with
respect to the construction of drains and sanitary sewers beyond
the boundaries of the airport or landing field, the board shall
proceed in the same manner as private owners of property and may
institute proceedings and negotiate with the departments, bodies,
and officers of an eligible entity to secure the proper orders and
approvals; and to order a public utility or public service
corporation or other person to remove or to install in underground
conduits wires, cables, and power lines passing through or over the
airport or landing field or along the borders or within a reasonable
distance that may be determined to be necessary for the safety of
operations, upon payment to the utility or other person of due
compensation for the expense of the removal or reinstallation. The
board must consent before any franchise may be granted by state
or local authorities for the construction of or maintenance of
railway, telephone, telegraph, electric power, pipe, or conduit line
upon, over, or through land under the control of the board or within
a reasonable distance of land that is necessary for the safety of
operation. The board must also consent before overhead electric
power lines carrying a voltage of more than four thousand four
hundred (4,400) volts and having poles, standards, or supports over
thirty (30) feet in height within one-half (1/2) mile of a landing
area acquired or maintained under this chapter may be installed.
(27) To contract with any other state agency or instrumentality or
any political subdivision for the rendition of services, the rental or
use of equipment or facilities, or the joint purchase and use of
equipment or facilities that are necessary for the operation,
maintenance, or construction of an airport operated under this
chapter.
(28) To provide air transportation in furtherance of the duties and
responsibilities of the board.
(29) To promote or encourage aviation-related trade or commerce
at the airports that it operates.
SOURCE: IC 8-22-3-16; (04)IN1312.1.58. -->
SECTION 58. IC 8-22-3-16, AS AMENDED BY P.L.90-2002,
SECTION 328, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 16. (a) The board may issue
general obligation bonds of the authority for the purpose of procuring
funds to pay the cost of acquiring real property, or constructing,
enlarging, improving, remodeling, repairing, or equipping buildings,
structures, runways, or other facilities, for use as or in connection with
or for administrative purposes of the airport. The issuance of the bonds
must be authorized by ordinance of the board providing for the amount,
terms, and tenor of the bonds and for the time and character of notice
and the mode of making sale. If one (1) airport is owned by the
authority, an ordinance authorizing the issuance of bonds for a separate
second airport is subject to approval as provided in this section. The
bonds bear interest and are payable at the times and places that the
board determines but running not more than twenty-five (25) years
after the date of their issuance, and they must be executed in the name
of the authority by the president of the board and attested by the
secretary who shall affix to each of the bonds the official seal of the
authority. The interest coupons attached to the bonds may be executed
by placing on them the facsimile signature of the president of the
board.
(b) The issuance of general obligation bonds must be approved by
resolution of the following body:
(1) When the authority is established by an eligible entity, by its
fiscal body.
(2) When the authority is established by two (2) or more eligible
entities acting jointly, by the fiscal body of each of those entities.
(3) When the authority was established under IC 19-6-2, by the
mayor of the consolidated city, and if a second airport is to be
funded, also by the city-county council.
(4) When the authority was established under IC 19-6-3, by the
county council.
(c) The airport director shall manage and supervise the preparation,
advertisement, and sale of the bonds, subject to the authorizing
ordinance. Before the sale of the bonds, the airport director shall cause
notice of the sale to be published once each week for two (2)
consecutive weeks in two (2) newspapers of general circulation
published in the district, setting out the time and place where bids will
be received, the amount and maturity dates of the issue, the maximum
interest rate, and the terms and conditions of sale and delivery of the
bonds. The bonds shall be sold to the highest bidder, in accordance
with the procedures for selling public bonds. After the bonds have been
properly sold and executed, the airport director shall deliver them to the
treasurer of the authority and take his receipt for them, and shall certify
to the treasurer the amount which the purchaser is to pay for them,
together with the name and address of the purchaser. On payment of
the purchase price the treasurer shall deliver the bonds to the
purchaser, and the treasurer and airport director or superintendent shall
report their actions to the board.
(d) The provisions of IC 6-1.1-20, IC 36-3.1, and IC 5-1 relating to
the filing of a petition requesting the issuance of bonds and giving
notice of them, the giving of notice of determination to issue bonds, the
giving of notice of hearing on the appropriation of the proceeds of
bonds and the right of taxpayers to appeal and be heard on the
proposed appropriation, the approval of the appropriation by the
department of local government finance, the right of taxpayers to
remonstrate against the issuance of bonds, and the sale of bonds at
public sale for not less than par value are applicable to proceedings
under this chapter for the issuance of general obligation bonds.
(e) Bonds issued under this chapter are not a corporate obligation or
indebtedness of any eligible entity but are an indebtedness of the
authority as a municipal corporation. An action to question the validity
of the bonds issued or to prevent their issue must be instituted not later
than the date set for sale of the bonds, and all of the bonds after that
date are incontestable.
SOURCE: IC 8-22-3-17; (04)IN1312.1.59. -->
SECTION 59. IC 8-22-3-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 17. (a) For the
purpose of raising money to pay all bonds issued under section 16 of
this chapter and any interest on them, the principal of and interest on
any outstanding bonds or obligations payable from taxes and assumed
under section 33 of this chapter, and leases entered into under
IC 8-22-3.6,
that are payable in whole or in part from a property tax
levy, the board shall levy each year a special
tax assessment upon all
of the property, both real and personal, located within the district in a
manner and in an amount to meet and pay the principal of the bonds as
they severally mature, together with all interest accruing on them, and
to pay lease rentals as they become due, after taking into account all
other revenues pledged to the payment of the bonds or lease rentals.
(b) The board shall file the tax special assessment levied each year
with the county auditor of the county in which the district is located
under IC 6-1.1-17.
(c) The tax levied shall be collected and enforced by the treasurer of
the county under IC 6-1.1, and as the tax special assessment is
collected by the treasurer of the county it shall be paid over to the
treasurer of the authority. The treasurer shall accumulate and keep the
tax special assessments in a separate fund to be known as the "airport
authority bond fund", which shall be applied to the payment of the
bonds and the interest on them as they severally mature and to the
payment of lease rentals and to no other purposes.
(d) The bonds issued under this chapter and the interest on them are
exempt from taxation for all purposes except the financial institutions
tax imposed under IC 6-5.5 or a state inheritance tax imposed under
IC 6-4.1.
SOURCE: IC 8-22-3-25; (04)IN1312.1.60. -->
SECTION 60. IC 8-22-3-25, AS AMENDED BY P.L.224-2003,
SECTION 281, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 25. (a) Subject to subsection
(c), The board may provide a cumulative building fund in compliance
with IC 6-1.1-41 to provide for the acquisition of real property, and the
construction, enlarging, improving, remodeling, repairing, or equipping
of buildings, structures, runways, or other facilities for use in
connection with the airport needed to carry out this chapter and to
facilitate and support commercial intrastate air transportation.
(b) The board may levy in compliance with IC 6-1.1-41 a tax not to
exceed:
(1) thirty-three hundredths of one cent ($0.0033) on each one
hundred dollars ($100) of assessed value of taxable property within
the district, if an eligible entity other than a city established the
district or if the district was established jointly with an eligible
entity that is not a city;
(2) one and thirty-three hundredths cents ($0.0133) on each one
hundred dollars ($100) of assessed value of taxable property within
the district, if the authority was established under IC 19-6-3 (before
its repeal on April 1, 1980); and
(3) for any other district not described in subdivision (1) or (2), the
following:
Total Assessed Rate Per $100 Of
Property Valuation Assessed Valuation
$300 million or less $0.0167
More than $300 million
but not more than $450 million $0.0133
More than $450 million
but not more than $600 million $0.01
More than $600 million
but not more than $900 million $0.0067
More than $900 million $0.0033
As the tax is collected it may be invested in negotiable United States
bonds or other securities that the federal government has the direct
obligation to pay. Any of the funds collected that are not invested in
government obligations shall be deposited in accordance with
IC 5-13-6 and shall be withdrawn in the same manner as money is
regularly withdrawn from the general fund but without further or
additional appropriation. The levy authorized by this section is in
addition to the levies authorized by section 11 and section 23 of this
chapter.
(c) Spending under subsection (a) to facilitate and support
commercial intrastate air transportation is subject to a maximum of one
million dollars ($1,000,000) cumulatively for all years in which money
is spent under that subsection.
SOURCE: IC 8-22-3.5-6; (04)IN1312.1.61. -->
SECTION 61. IC 8-22-3.5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 6. (a) After
adoption of the resolution under section 5 of this chapter, the
commission shall:
(1) publish notice of the adoption and substance of the resolution
in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit that has
authority to levy property taxes in the geographic area where the
airport development zone is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the airport
development zone, including the following:
(i) The estimated economic benefits and costs incurred by
the airport development zone, as measured by increased
employment and anticipated growth of real property
assessed values.
(ii) The anticipated impact on tax revenues of each taxing
unit.
The notice must state the general boundaries of the area designated as
an airport development zone and must state that written remonstrances
may be filed with the commission until the time designated for the
hearing. The notice must also name the place, date, and time when the
commission will receive and hear remonstrances and objections from
persons interested in or affected by the proceedings pertaining to the
proposed airport development zone designation and will determine the
public utility and benefit of the proposed airport development zone
designation. The commission shall file the information required by
subdivision (2) with the officers of the taxing unit who are authorized
to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 or
IC 36-3.1, as appropriate, at least ten (10) days before the date of the
public hearing. All persons affected in any manner by the hearing,
including all taxpayers within the taxing district of the airport authority,
shall be considered notified of the pendency of the hearing and of
subsequent acts, hearings, adjournments, and orders of the commission
affecting the airport development zone if the commission gives the
notice required by this section.
(b) At the hearing, which may be recessed and reconvened from
time to time, the commission shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
objections that have been filed. After considering the evidence
presented, the commission shall take final action determining the
public utility and benefit of the proposed airport development zone
designation and confirming, modifying and confirming, or rescinding
the resolution. The final action taken by the commission shall be
recorded and is final and conclusive, except that an appeal may be
taken in the manner prescribed by section 7 of this chapter.
SOURCE: IC 8-22-3.6-3; (04)IN1312.1.62. -->
SECTION 62. IC 8-22-3.6-3, AS AMENDED BY P.L.170-2002,
SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 3. (a) An authority that is located in a:
(1) city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000);
(2) county having a population of more than one hundred five
thousand (105,000) but less than one hundred ten thousand
(110,000); or
(3) county having a population of more than three hundred
thousand (300,000) but less than four hundred thousand
(400,000);
may enter into a lease of an airport project with a lessor for a term not
to exceed fifty (50) years and the lease may provide for payments to be
made by the airport authority from property taxes levied under
IC 8-22-3-17, taxes allocated under IC 8-22-3.5-9, any other revenues
available to the airport authority, or any combination of these sources.
(b) A lease may provide that payments by the authority to the lessor
are required only to the extent and only for the period that the lessor is
able to provide the leased facilities in accordance with the lease. The
terms of each lease must be based upon the value of the facilities leased
and may not create a debt of the authority or the eligible entity for
purposes of the Constitution of the State of Indiana.
(c) A lease may be entered into by the authority only after a public
hearing by the board at which all interested parties are provided the
opportunity to be heard. After the public hearing, the board may adopt
an ordinance authorizing the execution of the lease if it finds that the
service to be provided throughout the term of the lease will serve the
public purpose of the authority and is in the best interest of the
residents of the authority district.
(d) Upon execution of a lease providing for payments by the
authority in whole or in part from the levy of property taxes under
IC 8-22-3-17 or taxes under IC 6-3.5-9, the board shall publish notice
of the execution of the lease and its approval in accordance with
IC 5-3-1. Fifty (50) or more taxpayers residing in the authority district
who will be affected by the lease and who may be of the opinion that
no necessity exists for the execution of the lease or that the payments
provided for in the lease are not fair and reasonable may file a petition
in the office of the county auditor within thirty (30) days after the
publication of the notice of execution and approval. The petition must
set forth the petitioners' names, addresses, and objections to the lease
and the facts showing that the execution of the lease is unnecessary or
unwise or that the payments provided for in the lease are not fair and
reasonable, as the case may be.
(e) Upon the filing of a petition under subsection (d), the county
auditor shall immediately certify a copy of the petition, together with
any other data necessary to present the questions involved, to the
department of local government finance. Upon receipt of the certified
petition and information, the department of local government finance
shall fix a time and place for a hearing in the authority district, which
must be not less than five (5) or more than thirty (30) days after the
time is fixed. Notice of the hearing shall be given by the department of
local government finance to the members of the board, and to the first
fifty (50) petitioners on the petition, by a letter signed by one (1)
member of the state board of tax commissioners and enclosed with
fully prepaid postage sent to those persons at their usual place of
residence, at least five (5) days before the date of the hearing. The
decision of the department of local government finance on the appeal,
upon the necessity for the execution of the lease, and as to whether the
payments under it are fair and reasonable, is final.
(f) An authority entering into a lease payable from any sources
permitted under this chapter may:
(1) pledge the revenue to make payments under the lease pursuant
to IC 5-1-14-4; or
(2) establish a special fund to make the payments.
(g) Lease rentals may be limited to money in the special fund so that
the obligations of the airport authority to make the lease rental
payments are not considered debt of the unit or the district for purposes
of the Constitution of the State of Indiana.
(h) Except as provided in this section, no approvals of any
governmental body or agency are required before the authority enters
into a lease under this section.
(i) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be brought within
thirty (30) days after the later of:
(1) the public hearing described in subsection (c); or
(2) the publication of the notice of the execution and approval of
the lease described in subsection (d), if the lease is payable in
whole or in part from tax levies.
However, if the lease is payable in whole or in part from tax levies and
an appeal has been taken to the department of local government
finance, an action to contest the validity or enjoin the performance
must be brought within thirty (30) days after the decision of the
department of local government finance.
(j) If an authority exercises an option to buy an airport project from
a lessor, the authority may subsequently sell the airport project, without
regard to any other statute, to the lessor at the end of the lease term at
a price set forth in the lease or at fair market value established at the
time of the sale by the authority through auction, appraisal, or arms
length negotiation. If the airport project is sold at auction, after
appraisal, or through negotiation, the board shall conduct a hearing
after public notice in accordance with IC 5-3-1 before the sale. Any
action to contest the sale must be brought within fifteen (15) days of
the hearing.
SOURCE: IC 8-22-4-3; (04)IN1312.1.63. -->
SECTION 63. IC 8-22-4-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 3. (a) A party
state is not obligated to appropriate funds of the state for the
development, support, and maintenance of the airport authority. All
revenue received from the air facility and the property, both real and
personal, within the jurisdiction and control of the airport authority
must be applied to the maintenance and development of the air facility.
All limitations upon expenditures, which may be an element of title to
the real estate held by the airport authority, must be observed.
(b) Revenue bonds to be retired exclusively from income received
from the operation of the air facility may be issued by the airport
authority and in the name of the authority in accordance with the
statutes of the state in which the air facility is located that prescribe the
terms and conditions for the issuance of revenue bonds by airport
authorities.
(c) The airport authority may secure loans from private financing
and offer as collateral those assets, real, personal or mixed, in
accordance with the statutes of the state in which the airport is located.
(d) Each year the airport authority shall prepare a budget of its
estimated expenditures for the fiscal year beginning on January 1 of the
succeeding year and shall before July 2 submit a copy of the report to
the various combining governmental units. The estimated expenditures
must be allocated and pro rated equally between the various combining
governmental units and a statement of the allocated amount must be
included in the copy of the budgetary report submitted to the
combining governmental units. To provide funds to pay its share of the
proposed expenditures, each combining governmental unit may
annually levy a tax on property located within the governmental unit at
a rate sufficient to raise funds to pay its pro rated share of estimated
expenditures. The tax shall be levied and collected
in the same manner
as other property taxes are levied and collected by the governmental
unit and in accordance with the statutes of the state in which the unit
is located. under IC 6-3.5-9. The money raised by the tax levy shall be
appropriated and distributed to the airport authority by the
governmental unit. Funds so appropriated shall be used exclusively for
the development and maintenance of the air facility.
(e) The airport authority may meet any of its obligations, in whole
or in part, with funds made available to it under section 2 of this
chapter. However, the airport authority must take specific action to set
aside those funds before incurring an obligation to be met in whole or
in part in this manner.
(f) The expenses and other costs for each member of the airport
authority shall be met by the airport authority in accordance with the
standards and procedures that it establishes under its bylaws, rules, and
regulations.
(g) The airport authority shall keep accurate records of all receipts
and disbursements. The receipts and disbursements of the airport
authority are subject to an annual audit and accounting procedures
established under its bylaws. All receipts and disbursements of funds
handled by the airport authority shall be audited by a qualified public
accountant and the report of the audit shall be incorporated into and
become a part of the annual report of the airport authority.
(h) The accounts of the airport authority shall be kept open to
inspection by the general public at any reasonable times.
SOURCE: IC 9-13-2-128; (04)IN1312.1.64. -->
SECTION 64. IC 9-13-2-128 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 128. "Political
subdivision" means a county, a township, a city, a town, a public school
corporation, or any other subdivision of the state recognized in any law,
including any special taxing district or entity and any public
improvement district authority or entity authorized to levy taxes or
assessments. has the meaning set forth in IC 36-1-2-13.
SOURCE: IC 10-14-4-10; (04)IN1312.1.65. -->
SECTION 65. IC 10-14-4-10, AS ADDED BY P.L.2-2003,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 10. The fiscal officer of an entity receiving
a grant under this chapter shall:
(1) establish a separate account within the entity's general fund;
and
(2) deposit any grant proceeds received under this chapter in the
account.
The department of local government finance may not reduce an entity's
maximum or actual property tax levy under IC 6-1.1-18.5 on account
of grant money deposited in the account.
SOURCE: IC 10-18-2-5; (04)IN1312.1.66. -->
SECTION 66. IC 10-18-2-5, AS ADDED BY P.L.2-2003,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 5. (a) If a county issues bonds for a world
war memorial under this chapter, the county fiscal body, county
executive, and any other county official who fixes rates or levies taxes
shall yearly tax all real and personal property within the county at a rate
on each one hundred dollars ($100) of taxable property to meet the
interest and principal on world war memorial bonds as they mature.
(b) Taxes levied Money appropriated for world war memorial
bonds:
(1) shall be collected by the treasurer of a county or other proper
officer in the same manner as other taxes are collected and
enforced;
(2) shall be kept in a separate fund to be known as the world war
memorial bond fund;
(3) shall be applied to the payment of the bonds issued under this
chapter and interest as the bonds mature; and
(4) shall be deposited in an interest earning account with one (1)
or more of the depositories in the county, with all interest earned
becoming a part of the fund.
SOURCE: IC 10-18-3-9; (04)IN1312.1.67. -->
SECTION 67. IC 10-18-3-9, AS ADDED BY P.L.2-2003,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 9. The county or city authorities shall
appropriate a sufficient amount for the purpose of raising money to:
(1) meet the bonds and interest on the bonds; or
(2) establish or erect a memorial without the issuance of bonds.
the county or city authorities shall annually, at the time the general tax
levy is made, levy a special tax on the taxable property of the county or
city, subject to this chapter. Funds may be raised in yearly amounts
until a sufficient amount has accrued to enable the board or common
council to proceed with the erection or establishment of the memorial.
SOURCE: IC 10-18-4-6; (04)IN1312.1.68. -->
SECTION 68. IC 10-18-4-6, AS ADDED BY P.L.2-2003,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 6. (a) To raise money to pay the bonds and
the interest on the bonds issued under this chapter, the legislative body
of the city and all other officials, whether city or state, shall
levy
impose each year
in addition to all other taxes the city may levy, a tax
on all property, real or personal, within the city, in the manner and at
a rate on each one hundred dollars ($100) of taxable property in the city
as a tax under IC 6-3.5-9 to meet the principal of the bonds as they
severally mature and interest accruing on the bonds.
The legislative
body of the city and the fiscal officer of the city shall certify the taxes
levied each year to the auditor of the county in which the city is located
or other proper officer not later than the first Monday of September in
each year or at the time of the certification of the city's annual tax levy.
(b) Taxes levied and certified under this section shall be collected
and enforced in the same manner as other taxes are collected and
enforced. As the taxes are collected, The taxes shall be:
(1) kept in a separate fund to be known as the "World War
Memorial bond fund"; and
(2) applied to the payment of the bonds issued under this chapter
and interest accruing on the bonds as they severally mature, and
for no other purpose.
All money collected for the payment of the bonds and the interest
accruing on the bonds shall be deposited at interest with one (1) or
more of the depositories as other public funds of the city. All interest
collected becomes a part of the fund.
(c) (b) In a city in which there has been established a sinking fund
and a board of sinking fund commissioners:
(1) the World War Memorial bond fund shall be under the care,
custody, control, and jurisdiction of the board of sinking fund
commissioners; and
(2) all taxes authorized and required to be levied and collected
under this section to pay the bonds as they mature and interest
accruing on the bonds shall be used and applied by the board of
sinking fund commissioners to pay the bonds as they mature with
interest on the bonds.
SOURCE: IC 10-18-4-11; (04)IN1312.1.69. -->
SECTION 69. IC 10-18-4-11, AS ADDED BY P.L.2-2003,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 11. (a) If the board of public works of a city
has been authorized by an ordinance of the city's legislative body,
passed and approved under section 22 of this chapter, appropriating
money to be used by the board of public works under this chapter, the
board may, with the approval of the mayor of the city, enter into a
contract with the county in which the city is located, acting through the
board of commissioners of the county, providing for the acquisition
jointly by the city and the county by purchase, donation, or
condemnation of interests in real property to be added to real property
designated for use by the state for World War memorial and other
public purposes.
(b) The board of public works, with the approval of the mayor, may
join with the county, acting through its board of commissioners, by an
appropriate contract, deed, or grant, to convey to the state the real
property acquired jointly by the city and the county for World War
memorial and other public purposes, under the terms and conditions
stated in the contract, deed, or grant.
(c) The board of public works of a city may contract with the county
in which the city is located, acting through its board of commissioners,
providing for the acquisition by purchase, donation, or condemnation
of interests in real property and the construction of a World War
memorial suitable for the city and county and suitable for other public
purposes. If the city, through its board of public works and mayor,
wants to contract under this chapter with the county in which the city
is located for any of the purposes authorized by this chapter, the board
of public works must adopt a resolution stating that proposal. A
certified copy of the resolution must be delivered to the board of
commissioners of the county. The board of commissioners of the
county, not later than sixty (60) days after the receipt of the resolution,
shall determine by order or resolution whether the county will join with
the city in the execution of a contract for a purpose authorized by this
chapter.
(d) If the city and county determine to join in the acquisition of
interests in real property to be added to any real property designated at
any time for use by the state for World War memorial and other public
purposes as authorized by law, then the board of public works, acting
for the city with the approval of the mayor, shall execute a contract on
behalf of the city with the county, acting through its board of
commissioners. The contract must describe the real property interests
to be acquired jointly by the city and the county and the part of the
acquisition cost to be paid by the city and the part of the acquisition
cost to be paid by the county. The contract may contain other
provisions that the city and the county agree upon and that are not
inconsistent with this chapter. The contract must be executed in
duplicate and be recorded in the minutes of the proceedings of the
board of public works of the city and of the board of county
commissioners of the county.
(e) If the county and city determine to establish a joint World War
memorial, then the board of public works, acting for the city with the
approval of the mayor, shall execute a contract on behalf of the city
with the county. The contract must provide as follows:
(1) For the acquisition of real property interests and the
construction on the real property of a joint World War memorial
suitable for the county and city.
(2) For the definite and respective parts of the total cost of the
World War memorial that will be paid by the county and by the
city and the time and manner of the payments.
(3) That the acquisition of the real property and the execution of
all necessary contracts for the construction of the joint World War
memorial shall be made by a board of trustees, consisting of five
(5) members, to be appointed and have the powers and perform
the duties as provided in this chapter.
(4) That the total cost of the acquisition of the real property for
the joint World War memorial and the construction of the
memorial may not exceed the sum of the following:
(A) The amount appropriated for the memorial by the city and
by the board of commissioners of the county.
(B) Any amounts donated, contributed, or received by the city
and by the county for the purpose of the World War memorial.
(5) That the necessary cost and expenses for the management,
maintenance, repairs, and improvement of the World War
memorial shall be paid by the county and city in the same
proportion that they contribute to the establishment of the
memorial.
(6) Any other provisions that may be agreed upon between the
county and the city consistent with this chapter.
(f) The city shall pay for its part due under any contract executed
with the county under this chapter either from the city's general funds
or from the proceeds of bonds sold under this chapter.
(g) The legislative body of the city may authorize by ordinance the
sale of bonds of the city for the purpose of raising funds to pay the
city's part of the cost under a contract that it executes with the county
under this chapter.
(h) The sale of bonds shall comply with a contract executed by a city
with the county in which the city is located for any purpose authorized
by this chapter, and the levy of taxes under IC 6-3.5-9 to pay the
bonds, with interest accruing on the bonds, is governed by this chapter.
The legislative body of the city and other proper officers shall sell the
necessary bonds and levy and collect the necessary taxes to pay the
bonds as they mature and the interest accruing on the bonds as
provided in this chapter.
SOURCE: IC 12-7-2-31.3; (04)IN1312.1.70. -->
SECTION 70. IC 12-7-2-31.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 31.3. As used in this title,
"child services" means the following:
(1) Child welfare services specifically provided for children
who are:
(A) adjudicated to be:
(i) children in need of services; or
(ii) delinquent children; or
(B) recipients of or are eligible for:
(i) informal adjustments;
(ii) service referral agreements; and
(iii) adoption assistance;
including the costs of using an institution or facility in Indiana
for providing educational services as described in either
IC 20-8.1-3-36 (if applicable) or IC 20-8.1-6.1-8 (if applicable),
all services required under IC 31-40-1-2, and all costs
required under IC 20-8.1-6.1-7.
(2) Assistance awarded by a county to a destitute child under
IC 12-17-1.
(3) Child welfare services as described in IC 12-17-3.
SOURCE: IC 12-7-2-31.4; (04)IN1312.1.71. -->
SECTION 71. IC 12-7-2-31.4 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]:
Sec. 31.4. As used in this title,
"children's psychiatric residential treatment services" means
services that are:
(1) eligible for federal financial participation under the state
Medicaid plan; and
(2) provided to individuals less than twenty-one (21) years of
age who are:
(A) eligible for services under the state Medicaid plan;
(B) approved by the office for admission to and treatment
in a private psychiatric residential treatment facility; and
(C) residing in a private psychiatric residential facility for
purposes of treatment for a mental health condition, based
on an approved treatment plan that complies with
applicable federal and state Medicaid rules and
regulations.
SOURCE: IC 12-7-2-95; (04)IN1312.1.72. -->
SECTION 72. IC 12-7-2-95 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 95. (a)
"Grant-in-aid", for purposes of the statutes listed in subsection (b),
means any money paid by the federal government to the state or any
money paid by the state to a county for the purpose of defraying any of
the expenses, claims, allowances, assistance, or obligations authorized
by this title.
(b) This section applies to the following statutes:
(1) IC 12-13.
(2) IC 12-14.
(3) IC 12-15.
(4) IC 12-17-1.
(5) IC 12-17-2.
(6) IC 12-17-3.
(7) IC 12-17-9.
(8) IC 12-17-10.
(9) IC 12-17-11.
(10) IC 12-19.
SOURCE: IC 12-13-5-1; (04)IN1312.1.73. -->
SECTION 73. IC 12-13-5-1, AS AMENDED BY P.L.273-1999,
SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 1. The division shall administer or supervise
the public welfare activities of the state. The division has the following
powers and duties:
(1) The administration of old age assistance, aid to dependent
children, and assistance to the needy blind and persons with
disabilities, excluding assistance to children with special health
care needs.
(2) The administration of the following:
(A) Any public child welfare service.
(B) The licensing and inspection under IC 12-17.2 and
IC 12-17.4.
(C) The care of dependent and neglected children in foster
family homes or institutions, especially children placed for
adoption or those born out of wedlock.
(D) The interstate placement of children.
(E) Any other child services or children's psychiatric
residential treatment services.
(3) The provision of services to county governments, including
the following:
(A) Organizing and supervising county offices for the effective
administration of public welfare functions.
(B) Compiling statistics and necessary information concerning
public welfare problems throughout Indiana.
(C) Researching and encouraging research into crime,
delinquency, physical and mental disability, and the cause of
dependency.
(4) (3) Prescribing the form of, printing, and supplying to the
county departments blanks for applications, reports, affidavits,
and other forms the division considers necessary and advisable.
(5) (4) Cooperating with the federal Social Security
Administration and with any other agency of the federal
government in any reasonable manner necessary and in
conformity with IC 12-13 through IC 12-19 to qualify for federal
aid for assistance to persons who are entitled to assistance under
the federal Social Security Act. The responsibilities include the
following:
(A) Making reports in the form and containing the information
that the federal Social Security Administration Board or any
other agency of the federal government requires.
(B) Complying with the requirements that a board or agency
finds necessary to assure the correctness and verification of
reports.
(6) (5) Appointing from eligible lists established by the state
personnel board employees of the division necessary to effectively
carry out IC 12-13 through IC 12-19. The division may not
appoint a person who is not a citizen of the United States and who
has not been a resident of Indiana for at least one (1) year
immediately preceding the person's appointment unless a
qualified person cannot be found in Indiana for a position as a
result of holding an open competitive examination.
(7) (6) Assisting the office of Medicaid policy and planning in
fixing fees to be paid to ophthalmologists and optometrists for the
examination of applicants for and recipients of assistance as
needy blind persons.
(8) (7) When requested, assisting other departments, agencies,
divisions, and institutions of the state and federal government in
performing services consistent with this article.
(9) (8) Acting as the agent of the federal government for the
following:
(A) In welfare matters of mutual concern under IC 12-13
through IC 12-19.
(B) In the administration of federal money granted to Indiana
in aiding welfare functions of the state government.
(10) (9) Administering additional public welfare functions vested
in the division by law and providing for the progressive
codification of the laws the division is required to administer.
(11) (10) Supervising day care centers and child placing agencies.
(12) (11) Supervising the licensing and inspection of all public
child caring agencies.
(13) (12) Supervising the care of delinquent children and children
in need of services.
(14) (13) Assisting juvenile courts as required by IC 31-30
through IC 31-40.
(15) (14) Supervising the care of dependent children and children
placed for adoption.
(16) (15) Compiling information and statistics concerning the
ethnicity and gender of a program or service recipient.
(17) (16) Providing permanency planning services for children in
need of services, including:
(A) making children legally available for adoption; and
(B) placing children in adoptive homes;
in a timely manner.
SOURCE: IC 12-13-7-8; (04)IN1312.1.74. -->
SECTION 74. IC 12-13-7-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 8. (a) The
treasurer of state may receive money:
(1) received from a source other than the federal Social Security
Act;
(2) not received from taxes; levied in the county; and
(3) that under IC 12-13 through IC 12-19 the division and county
offices are authorized to collect, receive, and administer.
(b) The treasurer of state may pay the money received under
subsection (a) into the proper fund or the proper account of the state
general fund, provide for the proper custody of the money, and make
disbursements upon the order of the division and upon warrant of the
auditor of state.
SOURCE: IC 12-13-7-17; (04)IN1312.1.75. -->
SECTION 75. IC 12-13-7-17, AS AMENDED BY P.L.273-1999,
SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 17. The part of the care and maintenance of
the inmates of the Plainfield Juvenile Correctional Facility and the
Indianapolis Juvenile Correctional Facility that under law is to be
charged back to the counties shall be paid from the county general
fund. and not the county family and children's fund, unless otherwise
provided by law.
SOURCE: IC 12-15-15-9; (04)IN1312.1.76. -->
SECTION 76. IC 12-15-15-9, AS AMENDED BY P.L.255-2003,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 9. (a) For purposes of this section and
IC 12-16-7.5-4.5, a payable claim is attributed to a county if the
payable claim is submitted to the division by a hospital licensed under
IC 16-21-2 for payment under IC 12-16-7.5 for care provided by the
hospital to an individual who qualifies for the hospital care for the
indigent program under IC 12-16-3.5-1 or IC 12-16-3.5-2 and:
(1) who is a resident of the county;
(2) who is not a resident of the county and for whom the onset of
the medical condition that necessitated the care occurred in the
county; or
(3) whose residence cannot be determined by the division and for
whom the onset of the medical condition that necessitated the care
occurred in the county.
(b) For each state fiscal year ending after June 30, 2003, a hospital
licensed under IC 16-21-2 that submits to the division during the state
fiscal year a payable claim under IC 12-16-7.5 is entitled to a payment
under this section.
(c) For a state fiscal year, subject to section 9.6 of this chapter, the
office shall pay to a hospital referred to in subsection (b) an amount
equal to the amount, based on information obtained from the division
and the calculations and allocations made under IC 12-16-7.5-4.5, that
the office determines for the hospital under STEP SIX of the following
STEPS:
STEP ONE: Identify:
(A) each hospital that submitted to the division one (1) or
more payable claims under IC 12-16-7.5 during the state fiscal
year; and
(B) the county to which each payable claim is attributed.
STEP TWO: For each county identified in STEP ONE,
identify:
(A) each hospital that submitted to the division one (1) or
more payable claims under IC 12-16-7.5 attributed to the
county during the state fiscal year; and
(B) the total amount of all hospital payable claims submitted
to the division under IC 12-16-7.5 attributed to the county
during the state fiscal year.
STEP THREE: For each county identified in STEP ONE, identify
the amount of county funds transferred to the Medicaid indigent
care trust fund under STEP FOUR of IC 12-16-7.5-4.5(b).
STEP FOUR: For each hospital identified in STEP ONE, with
respect to each county identified in STEP ONE, calculate the
hospital's percentage share of the county's funds transferred to the
Medicaid indigent care trust fund for the county under STEP
FOUR of IC 12-16-7.5-4.5(b). Each hospital's percentage share is
based on the total amount of the hospital's payable claims
submitted to the division under IC 12-16-7.5 attributed to the
county during the state fiscal year, calculated as a percentage of
the total amount of all hospital payable claims submitted to the
division under IC 12-16-7.5 attributed to the county during the
state fiscal year.
STEP FIVE: Subject to subsection (j), for each hospital identified
in STEP ONE, with respect to each county identified in STEP
ONE, multiply the hospital's percentage share calculated under
STEP FOUR by the amount of the county's funds transferred to
the Medicaid indigent care trust fund under STEP FOUR of
IC 12-16-7.5-4.5(b).
STEP SIX: Determine the sum of all amounts calculated under
STEP FIVE for each hospital identified in STEP ONE with
respect to each county identified in STEP ONE.
(d) A hospital's payment under subsection (c) is in the form of a
Medicaid add-on payment. The amount of a hospital's add-on payment
is subject to the availability of funding for the non-federal share of the
payment under subsection (e). The office shall make the payments
under subsection (c) before December 15 that next succeeds the end of
the state fiscal year.
(e) The non-federal share of a payment to a hospital under
subsection (c) is funded from the funds transferred to the Medicaid
indigent care trust fund under STEP FOUR of IC 12-16-7.5-4.5(b) of
each county to which a payable claim under IC 12-16-7.5 submitted to
the division during the state fiscal year by the hospital is attributed.
(f) The amount of a county's transferred funds transferred for a
county and available to be used to fund the non-federal share of a
payment to a hospital under subsection (c) is an amount that bears the
same proportion to the total amount of funds of the county transferred
for a county to the Medicaid indigent care trust fund under STEP
FOUR of IC 12-16-7.5-4.5(b) that the total amount of the hospital's
payable claims under IC 12-16-7.5 attributed to the county submitted
to the division during the state fiscal year bears to the total amount of
all hospital payable claims under IC 12-16-7.5 attributed to the county
submitted to the division during the state fiscal year.
(g) Any county's funds for a county identified in subsection (f) that
remain after the non-federal share of a hospital's payment has been
funded are available to serve as the non-federal share of a payment to
a hospital under section 9.5 of this chapter.
(h) For purposes of this section, "payable claim" has the meaning set
forth in IC 12-16-7.5-2.5(b)(1).
(i) For purposes of this section:
(1) the amount of a payable claim is an amount equal to the
amount the hospital would have received under the state's
fee-for-service Medicaid reimbursement principles for the
hospital care for which the payable claim is submitted under
IC 12-16-7.5 if the individual receiving the hospital care had been
a Medicaid enrollee; and
(2) a payable hospital claim under IC 12-16-7.5 includes a
payable claim under IC 12-16-7.5 for the hospital's care submitted
by an individual or entity other than the hospital, to the extent
permitted under the hospital care for the indigent program.
(j) The amount calculated under STEP FIVE of subsection (c) for a
hospital with respect to a county may not exceed the total amount of the
hospital's payable claims attributed to the county during the state fiscal
year.
SOURCE: IC 12-15-15-9.5; (04)IN1312.1.77. -->
SECTION 77. IC 12-15-15-9.5, AS ADDED BY P.L.255-2003,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 9.5. (a) For purposes of this section and
IC 12-16-7.5-4.5, a payable claim is attributed to a county if the
payable claim is submitted to the division by a hospital licensed under
IC 16-21-2 for payment under IC 12-16-7.5 for care provided by the
hospital to an individual who qualifies for the hospital care for the
indigent program under IC 12-16-3.5-1 or IC 12-16-3.5-2 and;
(1) who is a resident of the county;
(2) who is not a resident of the county and for whom the onset of
the medical condition that necessitated the care occurred in the
county; or
(3) whose residence cannot be determined by the division and for
whom the onset of the medical condition that necessitated the care
occurred in the county.
(b) For each state fiscal year ending after June 30, 2003, a hospital
licensed under IC 16-21-2:
(1) that submits to the division during the state fiscal year a
payable claim under IC 12-16-7.5; and
(2) whose payment under section 9(c) of this chapter was less
than the total amount of the hospital's payable claims under
IC 12-16-7.5 submitted by the hospital to the division during the
state fiscal year;
is entitled to a payment under this section.
(c) For a state fiscal year, subject to section 9.6 of this chapter, the
office shall pay to a hospital referred to in subsection (b) an amount
equal to the amount, based on information obtained from the division
and the calculations and allocations made under IC 12-16-7.5-4.5, that
the office determines for the hospital under STEP EIGHT of the
following STEPS:
STEP ONE: Identify each county whose
transfer of funds
transferred to the Medicaid indigent care trust fund under STEP
FOUR of IC 12-16-7.5-4.5(b) for the state fiscal year was less
than the total amount of all hospital payable claims attributed to
the county and submitted to the division during the state fiscal
year.
STEP TWO: For each county identified in STEP ONE, calculate
the difference between the amount of funds of the county
transferred to the Medicaid indigent care trust fund under STEP
FOUR of IC 12-16-7.5-4.5(b) and the total amount of all hospital
payable claims attributed to the county and submitted to the
division during the state fiscal year.
STEP THREE: Calculate the sum of the amounts calculated for
the counties under STEP TWO.
STEP FOUR: Identify each hospital whose payment under section
9(c) of this chapter was less than the total amount of the hospital's
payable claims under IC 12-16-7.5 submitted by the hospital to
the division during the state fiscal year.
STEP FIVE: Calculate for each hospital identified in STEP FOUR
the difference between the hospital's payment under section 9(c)
of this chapter and the total amount of the hospital's payable
claims under IC 12-16-7.5 submitted by the hospital to the
division during the state fiscal year.
STEP SIX: Calculate the sum of the amounts calculated for each
of the hospitals under STEP FIVE.
STEP SEVEN: For each hospital identified in STEP FOUR,
calculate the hospital's percentage share of the amount calculated
under STEP SIX. Each hospital's percentage share is based on the
amount calculated for the hospital under STEP FIVE calculated
as a percentage of the sum calculated under STEP SIX.
STEP EIGHT: For each hospital identified in STEP FOUR,
multiply the hospital's percentage share calculated under STEP
SEVEN by the sum calculated under STEP THREE. The amount
calculated under this STEP for a hospital may not exceed the
amount by which the hospital's total payable claims under
IC 12-16-7.5 submitted during the state fiscal year exceeded the
amount of the hospital's payment under section 9(c) of this
chapter.
(d) A hospital's payment under subsection (c) is in the form of a
Medicaid add-on payment. The amount of the hospital's add-on
payment is subject to the availability of funding for the non-federal
share of the payment under subsection (e). The office shall make the
payments under subsection (c) before December 15 that next succeeds
the end of the state fiscal year.
(e) The non-federal share of a payment to a hospital under
subsection (c) is derived from funds transferred to the Medicaid
indigent care trust fund under STEP FOUR of IC 12-16-7.5-4.5(b) and
not expended under section 9 of this chapter. To the extent possible,
the funds shall be derived on a proportional basis from the funds
transferred by each county identified in subsection (c), STEP ONE:
(1) to which at least one (1) payable claim submitted by the
hospital to the division during the state fiscal year is attributed;
and
(2) whose funds transferred to the Medicaid indigent care trust
fund under STEP FOUR of IC 12-16-7.5-4.5(b) were not
completely expended under section 9 of this chapter.
The amount available to be derived from the remaining funds
transferred to the Medicaid indigent care trust fund under STEP FOUR
of IC 12-16-7.5-4.5(b) to serve as the non-federal share of the payment
to a hospital under subsection (c) is an amount that bears the same
proportion to the total amount of funds transferred by for all the
counties identified in subsection (c), STEP ONE, that the amount
calculated for the hospital under subsection (c), STEP FIVE, bears to
the amount calculated under subsection (c), STEP SIX.
(f) Except as provided in subsection (g), the office may not make a
payment under this section until the payments due under section 9 of
this chapter for the state fiscal year have been made.
(g) If a hospital appeals a decision by the office regarding the
hospital's payment under section 9 of this chapter, the office may make
payments under this section before all payments due under section 9 of
this chapter are made if:
(1) a delay in one (1) or more payments under section 9 of this
chapter resulted from the appeal; and
(2) the office determines that making payments under this section
while the appeal is pending will not unreasonably affect the
interests of hospitals eligible for a payment under this section.
(h) Any funds transferred to the Medicaid indigent care trust fund
under STEP FOUR of IC 12-16-7.5-4.5(b) remaining after payments
are made under this section shall be used as provided in
IC 12-15-20-2(8)(D).
(i) For purposes of this section:
(1) "payable claim" has the meaning set forth in
IC 12-16-7.5-2.5(b);
(2) the amount of a payable claim is an amount equal to the
amount the hospital would have received under the state's
fee-for-service Medicaid reimbursement principles for the
hospital care for which the payable claim is submitted under
IC 12-16-7.5 if the individual receiving the hospital care had been
a Medicaid enrollee; and
(3) a payable hospital claim under IC 12-16-7.5 includes a
payable claim under IC 12-16-7.5 for the hospital's care submitted
by an individual or entity other than the hospital, to the extent
permitted under the hospital care for the indigent program.
SOURCE: IC 12-16-7.5-4.5; (04)IN1312.1.78. -->
SECTION 78. IC 12-16-7.5-4.5, AS ADDED BY P.L.255-2003,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 4.5. (a) Not later than October 31 following
the end of each state fiscal year, the division shall:
(1) calculate for each county the total amount of payable claims
submitted to the division during the state fiscal year attributed to:
(A) patients who were residents of the county; and
(B) patients:
(i) who were not residents of Indiana;
(ii) whose state of residence could not be determined by the
division; and
(iii) who were residents of Indiana but whose county of
residence in Indiana could not be determined by the
division;
and whose medical condition that necessitated the care or
service occurred in the county;
(2) notify each county of the amount of payable claims attributed
to the county under the calculation made under subdivision (1);
and
(3) with respect to payable claims attributed to a county under
subdivision (1):
(A) calculate the total amount of payable claims submitted
during the state fiscal year for:
(i) each hospital;
(ii) each physician; and
(iii) each transportation provider; and
(B) determine the amount of each payable claim for each
hospital, physician, and transportation provider listed in clause
(A).
(b) Before November 1 following the end of a state fiscal year, the
division shall allocate the state funds transferred from a county's
hospital care for the indigent fund for the county to the state hospital
care for the indigent fund under IC 12-16-14 during or for the state
fiscal year as required under the following STEPS:
STEP ONE: Determine the total amount of funds transferred from
a county's hospital care for the indigent fund by for the county to
the state hospital care for the indigent fund under IC 12-16-14
during or for the state fiscal year.
STEP TWO: Of the total amount of payable claims submitted to
the division during the state fiscal year attributed to the county
under subsection (a), determine the amount of total hospital
payable claims, total physician payable claims, and total
transportation provider payable claims. Of the amounts
determined for physicians and transportation providers, calculate
the sum of those amounts as a percentage of an amount equal to
the sum of the total payable physician claims and total payable
transportation provider claims attributed to all the counties
submitted to the division during the state fiscal year.
STEP THREE: Multiply three million dollars ($3,000,000) by the
percentage calculated under STEP TWO.
STEP FOUR: Transfer to the Medicaid indigent care trust fund
for purposes of IC 12-15-20-2(8)(D) an amount equal to the
amount calculated under STEP ONE, minus an amount equal to
the amount calculated under STEP THREE.
STEP FIVE: The division shall retain an amount equal to the
amount remaining in the state hospital care for the indigent fund
after the transfer in STEP FOUR for purposes of making
payments under section 5 of this chapter.
(c) The costs of administering the hospital care for the indigent
program, including the processing of claims, shall be paid from the
funds transferred to the state hospital care for the indigent fund.
SOURCE: IC 12-16-14-1; (04)IN1312.1.79. -->
SECTION 79. IC 12-16-14-1, AS AMENDED BY P.L.181-1999,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 1. A county hospital care for the indigent
fund is established in as a state fund for each county. The fund
consists of the following:
(1) A tax levy on the property located in each county before
January 1, 2005.
(2) The financial institutions tax (IC 6-5.5), motor vehicle excise
taxes (IC 6-6-5), and commercial vehicle excise taxes (IC 6-6-5.5)
that are allocated to the fund. Amounts appropriated by the
general assembly to the fund.
SOURCE: IC 12-17-1-10; (04)IN1312.1.80. -->
SECTION 80. IC 12-17-1-10, AS AMENDED BY P.L.273-1999,
SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 10. (a) Upon the completion of an
investigation under section 9 of this chapter, the county office shall do
the following:
(1) Determine whether the child is eligible for assistance under
this chapter and the division's rules.
(2) Determine the amount of the assistance and the date on which
the assistance is to begin.
(3) Make an award, including any subsequent modification of the
award, with which the county office shall comply until the award
or modified award is vacated.
(4) Notify the applicant and the division of the county office's
decision in writing.
(b) The county office shall provide assistance to the recipient at
least monthly upon warrant of the county auditor. The assistance must
be:
(1) made from the county family and children's fund; money
appropriated for use by the division; and
(2) based upon a verified schedule of the recipients.
(c) The director of the county office shall prepare and verify the
amount payable to the recipient, in relation to the awards made by the
county office. The division shall prescribe the form upon which the
schedule under subsection (b)(2) must be filed.
SOURCE: IC 12-17-3-2; (04)IN1312.1.81. -->
SECTION 81. IC 12-17-3-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2.
(a) This section
does not apply to a county department's:
(1) administrative expenses; or
(2) expenses regarding facilities, supplies, and equipment.
(b) Necessary expenses incurred in the administration of the child
welfare services under section 1 of this chapter shall be paid
out of the
county welfare fund or the county family and children's fund
(whichever is appropriate). from state money appropriated for the
purpose.
SOURCE: IC 12-17.4-3-3.5; (04)IN1312.1.82. -->
SECTION 82. IC 12-17.4-3-3.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 3.5. (a) A county
may establish a child caring institution. The child caring institution
may be operated by:
(1) the county; or
(2) a public or private agency under contract with the county;
and must be operated under the rules adopted by the director of the
division under IC 12-17.4.
(b) This section does not affect the following:
(1) IC 31-31-1-1 or IC 31-40, requiring the county fiscal body to
appropriate sufficient money to pay for services, other than child
services or children's psychiatric residential treatment
services, ordered by the juvenile court.
(2) IC 31-31-8, authorizing the juvenile court to establish
detention and shelter care facilities.
(3) IC 12-13-5 and IC 12-19-1, requiring the division and the
county departments to provide care and treatment for delinquent
children and children in need of services.
SOURCE: IC 12-17.4-5-3.5; (04)IN1312.1.83. -->
SECTION 83. IC 12-17.4-5-3.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 3.5. (a) A county
may establish a child group home. The group home may be operated
by:
(1) the county; or
(2) a public or private agency under contract with the county;
and must be operated under the rules adopted by the director of the
division under IC 12-17.4.
(b) This section does not affect the following:
(1) IC 31-31-1-1 or IC 31-40, requiring the county fiscal body to
appropriate sufficient money to pay for services, other than child
services or children's psychiatric residential treatment
services, ordered by the juvenile court.
(2) IC 31-31-8, authorizing the juvenile court to establish
detention and shelter care facilities.
(3) IC 12-13-5 and IC 12-19-1, requiring the division and the
county departments to provide care and treatment for delinquent
children and children in need of services.
SOURCE: IC 12-19-1-1; (04)IN1312.1.84. -->
SECTION 84. IC 12-19-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1. A county office
of family and children is established in for each county.
SOURCE: IC 12-19-1-9; (04)IN1312.1.85. -->
SECTION 85. IC 12-19-1-9, AS AMENDED BY P.L.273-1999,
SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 9. (a) The division shall provide the
necessary facilities to house the county office.
(b) The division shall pay for the costs of the facilities, supplies, and
equipment needed by each county office. including the transfer to the
county that is required by IC 12-13-5.
SOURCE: IC 12-19-1-21; (04)IN1312.1.86. -->
SECTION 86. IC 12-19-1-21, AS ADDED BY P.L.273-1999,
SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 21. Notwithstanding any other law, after
December 31, 1999, a county may not impose any of the following:
(1) A property tax levy for a county welfare fund.
(2) A property tax levy for a county welfare administration fund.
(3) A family and children's fund.
(4) A children's psychiatric residential treatment services
fund.
SOURCE: IC 12-19-1-22; (04)IN1312.1.87. -->
SECTION 87. IC 12-19-1-22, AS ADDED BY P.L.273-1999,
SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 22. (a) All bonds issued and loans made
under IC 12-1-11 (before its repeal) or this article before January 1,
2000, IC 12-19-7 (before its repeal) or IC 12-19-7.5 (before its
repeal) that are payable from property taxes imposed under IC 12-19-3
(before its repeal), IC 12-19-5 (before its repeal), IC 12-19-7 (before
its repeal), or IC 12-19-7.5 (before its repeal):
(1) are direct general obligations of the county issuing the bonds
or making the loans; and
(2) are payable out of unlimited ad valorem taxes that shall be
levied and collected on all taxable property within the county.
(b) Each official and body responsible for the levying of taxes for
the county must ensure that sufficient levies are made to meet the
principal and interest on the bonds and loans at the time fixed for the
payment of the principal and interest, without regard to any other
statute. If an official or a body fails or refuses to make or allow a
sufficient levy required by this section, the bonds and loans and the
interest on the bonds and loans shall be payable out of the county
general fund without appropriation.
SOURCE: IC 12-19-1-23; (04)IN1312.1.88. -->
SECTION 88. IC 12-19-1-23 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 23. The division shall pay
the costs of child services.
SOURCE: IC 12-19-1-24; (04)IN1312.1.89. -->
SECTION 89. IC 12-19-1-24 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]:
Sec. 24. The division shall pay
the costs of children's psychiatric residential treatment services.
SOURCE: IC 12-24-16-3; (04)IN1312.1.90. -->
SECTION 90. IC 12-24-16-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 3. The costs
specified in this chapter shall be paid out of the county general fund
upon the certificate of the circuit court clerk and the warrant of the
county auditor. by the state.
SOURCE: IC 12-20-16-2; (04)IN1312.1.91. -->
SECTION 91. IC 12-20-16-2, AS AMENDED BY P.L.262-2003,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 2. (a) Except as provided in subsections (b)
and (c), the township trustee shall, in cases of necessity, do the
following:
(1) Promptly provide medical assistance for poor individuals in
the township who are not provided for in public institutions.
(2) See that medicines, medical supplies, special diets, or tests
prescribed by a physician or surgeon in attendance upon poor
individuals in the township are properly furnished.
(b) A township trustee may not provide to an individual medical
assistance under the
poor relief township assistance program if the
individual could qualify for medical assistance for the same service
under:
(1) IC 12-16;
(2) Medicaid;
(3) other governmental medical programs; or
(4) private health insurance that would cover the individual at the
time the assistance was provided. However, if the individual's
insurance does not pay for the medical assistance due to a policy
deductible or other policy limitation, the township trustee shall
pay for medical assistance that the trustee would provide if the
individual did not have insurance.
However, a township trustee may provide interim medical services
during the period that the individual has an application pending for
medical assistance under Medicaid (IC 12-15) or another governmental
medical program if the individual is reasonably complying with all
requirements of the application process.
(c) The township trustee shall pay only for the following medical
services for the poor of the township:
(1) Prescription drugs, not to exceed a thirty (30) day supply at a
time, as prescribed by an attending practitioner (as defined in
IC 16-42-19-5) other than a veterinarian. However, if the
prescription drugs are available only in a container that contains
more than a thirty (30) day supply, the township trustee may pay
for the available size.
(2) Office calls to a physician licensed under IC 25-22.5 or
another medical provider.
(3) Dental care needed to relieve pain or infection or to repair
cavities.
(4) Repair or replacement of dentures.
(5) Emergency room treatment that is of an emergency nature.
(6) Preoperation testing prescribed by an attending physician
licensed under IC 25-22.5.
(7) Over-the-counter drugs prescribed by a practitioner (as
defined in IC 16-42-19-5) other than a veterinarian.
(8) X-rays and laboratory testing as prescribed by an attending
physician licensed under IC 25-22.5.
(9) Visits to a medical specialist when referred by an attending
physician licensed under IC 25-22.5.
(10) Physical therapy prescribed by an attending physician
licensed under IC 25-22.5.
(11) Eyeglasses.
(12) Repair or replacement of a prosthesis not provided for by
other tax supported state or federal programs.
(13) Insulin and items needed to administer the biological, not to
exceed a thirty (30) day supply at a time, in accordance with
section 14 of this chapter. However, if the biologicals are
available only in a container that contains more than a thirty (30)
day supply, the township trustee may pay for the available size.
(d) The township trustee may establish a list of approved medical
providers to provide medical services to the poor of the township. Any
medical provider who:
(1) can provide the particular medical services within the scope
of the provider's license issued under IC 25; and
(2) is willing to provide the medical services for the charges
established by the township trustee;
is entitled to be included on the list.
(e) Unless prohibited by federal law, a township trustee who:
(1) provides to an individual medical assistance that is eligible for
payment under any medical program described in subsection (b)
for which payments are administered by an agency of the state
during the pendency of the individual's successful application for
the program; and
(2) submits a timely and proper claim to the agency;
is eligible for reimbursement by the agency to the same extent as any
medical provider.
(f) If a township trustee provides medical assistance for medical
services provided to an individual who is subsequently determined to
be eligible for Medicaid:
(1) the township trustee shall notify the medical provider that
provided the medical services of the individual's eligibility; and
(2) not later than thirty (30) days after the medical provider
receives the notice under subdivision (1), the medical provider
shall file a claim for reimbursement with the office.
(g) A medical provider that is reimbursed under subsection (f) shall,
not later than thirty (30) days after receiving the reimbursement, pay to
the township trustee the lesser of:
(1) the amount of medical assistance received from the trustee to
an individual; or
(2) the amount reimbursed by Medicaid to the medical provider.
(h) The state shall reimburse a township trustee for
expenditures made under this section that are not reimbursable
under Medicaid.
SOURCE: IC 12-20-20-2; (04)IN1312.1.92. -->
SECTION 92. IC 12-20-20-2, AS AMENDED BY P.L.101-2000,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 2. (a) If money is not available for the
payment of
poor relief township assistance claims under section 1 of
this chapter, the township board shall appeal to borrow money under
IC 12-20-24.
(b) This subsection does not apply to a county having a consolidated
city. If the township board does not appeal to borrow money under
IC 12-20-24 or if an appeal fails, the board of commissioners may
borrow money or otherwise provide the money. If the county
commissioners determine to borrow the money or otherwise provide
the money, the county fiscal body shall promptly pass necessary
ordinances and make the necessary appropriations to enable this to be
done, after determining whether to borrow money by any of the
following:
(1) A temporary loan against taxes
levied and in the process of
collection.
(2) The sale of county
poor relief township assistance bonds or
other county obligations.
(3) Any other lawful method of obtaining money for the payment
of
poor relief township assistance claims.
(c) This subsection applies only to a county having a consolidated
city. If a township board does not appeal to borrow money under
IC 12-20-24 or if an appeal fails, the board of commissioners shall
borrow money or otherwise provide the money. The county fiscal body
shall promptly pass necessary ordinances and make the necessary
appropriations to enable this to be done, after determining whether to
borrow money by any of the following methods:
(1) A temporary loan against taxes levied and in the process of
collection.
(2) The sale of county poor relief township assistance bonds or
other county obligations.
(3) Any other lawful method of obtaining money for the payment
of poor relief township assistance claims.
SOURCE: IC 12-20-21-2; (04)IN1312.1.93. -->
SECTION 93. IC 12-20-21-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. Money raised
by tax levies made specifically taxes imposed for poor relief township
assistance purposes, either by a county or township, may not be
considered as a part of and may not be commingled with other money
of the county. Poor relief township assistance money raised by
townships may not be commingled, except for the money resulting
from levies made taxes imposed by the townships for reimbursement
of the counties for advancements from the general fund.
SOURCE: IC 12-20-21-3; (04)IN1312.1.94. -->
SECTION 94. IC 12-20-21-3, AS AMENDED BY P.L.101-2000,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 3. (a) A township trustee and township board
may levy a specific impose a tax under IC 6-3.5-9 for the purpose of
providing money for the payment of poor relief township assistance
expenses in the following year. The tax may be sufficient to meet the
entire requirement of the township in the following year or the part that
is determined to be proper.
(b) If a tax levy is established under subsection (a), all proceeds
derived from the tax levy shall be distributed to the township at the
same time and in the same manner as proceeds from other property tax
levies are distributed to the township. The proceeds of the tax levy shall
be held by the township in its township poor relief assistance account
free and available for the payment of poor relief township assistance
obligations of the township. The funds are continuing funds and do not
revert to any other fund at the end of the year.
SOURCE: IC 12-20-21-4; (04)IN1312.1.95. -->
SECTION 95. IC 12-20-21-4, AS AMENDED BY P.L.262-2003,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 4. If the board of commissioners determines
from the
levies made taxes imposed by the respective townships for
poor relief township assistance purposes that there will be insufficient
money in the township
poor relief assistance fund to provide free and
available money during the following year for
poor relief township
assistance purposes on the basis of the total costs of
poor relief
township assistance granted by the township trustees, as
administrators of poor relief, township assistance, for the previous
twelve (12) months:
(1) the board of commissioners may include estimates for the
advancements in the county general fund budget; and
(2) the county fiscal body may appropriate for the advancement
in the budget and levy as adopted by the county fiscal body. and
(3) the department shall include that amount in the final county
general fund levy.
SOURCE: IC 12-20-23-2; (04)IN1312.1.96. -->
SECTION 96. IC 12-20-23-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. A county may
not borrow money to provide an advancement to a township unless the
township has a township poor relief ad valorem property tax rate of at
least one and sixty-seven hundredths cents ($0.0167) per one hundred
dollars ($100) of assessed valuation. local government income tax for
township assistance purposes.
SOURCE: IC 12-20-23-9; (04)IN1312.1.97. -->
SECTION 97. IC 12-20-23-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 9. (a) Bonds
issued by a county under this chapter must be issued so that one (1)
series is payable June 1 and one (1) series is payable December 1 in
each year in which the bonds are payable. The series must be as nearly
equal as possible considering the amount of the issue, the number of
serial maturities, and the denominations desired to be used.
(b) The first series of bonds and the first interest coupons must be
payable June 1 of the year following the time for establishing the next
annual tax levies after the date of the issue.
(c) If the issuance of bonds under IC 12-2-5 (before its repeal) or
this chapter is authorized by the county fiscal body at the fiscal body's
regular meeting held for the purpose of establishing tax levies budgets
for the succeeding year, the county may require that the first two (2)
series of the bonds mature in the following year if proper provision is
made for the payment of the bonds and interest coupons that are
payable in the following year.
SOURCE: IC 12-20-23-15; (04)IN1312.1.98. -->
SECTION 98. IC 12-20-23-15, AS AMENDED BY P.L.90-2002,
SECTION 350, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 15.
(a) All bonds issued under
IC 12-2-5 (before its repeal) or this chapter are the direct general
obligations of the county issuing the bonds, payable out of
unlimited ad
valorem taxes to be levied and collected on all of the taxable property
within the county. Each official and body having to do with the levying
of taxes for the county shall ensure that sufficient levies are made to
meet the principal and interest on the bonds at the time fixed for the
payment of the bonds, without regard for the provisions of any other
statute. If an official or a body fails or refuses to make or allow a
sufficient levy, the bonds and the interest on the bonds are payable out
of the general fund of the county without an appropriation being made
for the payment.
(b) A tax levy required by IC 12-2-5-6(a) (before its repeal) or
subsection (a) may be reduced by the amount the county will receive
in reimbursements from each township that receives an advancement
of bond proceeds. The department shall determine the amount the
county will receive for each year that the bond principal and interest
are payable. However, to the extent that the advancements together
with all other township indebtedness exceed two percent (2%) of the
adjusted value of the taxable property in the township as determined
under IC 36-1-15, the township may not impose an ad valorem property
tax levy to reimburse the county and the county is liable for the
principal and interest obligations on the bonds.
SOURCE: IC 12-20-23-18; (04)IN1312.1.99. -->
SECTION 99. IC 12-20-23-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 18. A county
auditor or other county official may not do any of the following:
(1) Commingle or transfer poor relief township assistance money
raised by tax levy taxes from the credit of one (1) township or
account to another township or account.
(2) Transfer money raised by a poor relief township assistance
bond issue to the credit of a township for which the bonds were
not issued.
(3) Transfer poor relief township assistance money to the credit
of any other fund or account.
SOURCE: IC 12-20-23-19; (04)IN1312.1.100. -->
SECTION 100. IC 12-20-23-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 19.
(a) Except as
provided in subsection (b), the township trustee and the township board
of a township to which an advancement is made under IC 12-2-5
(before its repeal) or this chapter shall, at the next annual meeting of
the township board after the making of an advancement by the county
and annually thereafter until paid, levy an ad valorem property tax
sufficient to reimburse the county for all advancements made under
IC 12-2-5 (before its repeal) or this chapter, together with the interest
on the advancements. The township shall repay to the county the
principal amount of the advancements in the same number of years as
the bonds from which the advancements are made are payable.
If the
officers fail to levy a sufficient property tax to repay the advancements
as provided in this section, the county auditor shall levy the property
tax or increase the property tax levy made by the trustee and township
board in an amount that will reimburse the county for the
advancements at the time and in the manner as provided in this section.
(b) Subsection (a) does not apply to a township during the time that
the township's indebtedness exceeds two percent (2%) of the adjusted
value of the taxable property in the township as determined under
IC 36-1-15.
SOURCE: IC 12-20-24-8; (04)IN1312.1.101. -->
SECTION 101. IC 12-20-24-8, AS AMENDED BY P.L.90-2002,
SECTION 355, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 8. (a) If a township board:
(1) appeals before August 1 for permission to borrow money;
(2) receives permission from the board of commissioners, county
council, or department to borrow money before November 1 of
that year; and
(3) borrows money under this chapter;
the township board shall levy a property tax beginning in the next
succeeding year and continuing for the term of the loan in an amount
each year that will be impose a tax under IC 6-3.5-9 for the ensuing
year and succeeding years sufficient to pay the principal and interest
due on the loan for the year.
(b) If a township board:
(1) appeals after August 1 for permission to borrow money;
(2) receives permission from the board of commissioners, county
council, or department to borrow money; and
(3) borrows money in the year of the appeal under this chapter;
the township board shall levy a property tax beginning in impose a tax
under IC 6-3.5-9 for the second succeeding year and continuing for
the term of the loan in an amount each year that will be sufficient to
pay the principal and interest due on the loan for the year.
(c) The property taxes levied under this section shall be retained by
the township trustee and applied by the township trustee to retire the
debt.
SOURCE: IC 12-20-25-4; (04)IN1312.1.102. -->
SECTION 102. IC 12-20-25-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. As used in this
chapter, "distressed township" means:
(1) a township that:
(A) has a valid
poor relief township assistance claim that the
county auditor cannot pay within thirty (30) days after the
claim is approved for payment under IC 12-2-1-31 (before its
repeal) or IC 12-20-20;
(B) has
poor relief township assistance expenditures during
a year that exceed the year's
poor relief township assistance
revenues, excluding any advances from the state and revenues
from short term loans from the county or a financial institution
or advances from the county from the proceeds of bonds, made
or issued under:
(i) this article; or
(ii) IC 12-2-1, IC 12-2-4.5, or IC 12-2-5 (before the repeal
of those statutes);
(C) has imposed and dedicated to poor relief township
assistance at least ninety percent (90%) of the maximum
permissible ad valorem property tax levy permitted for all of
the township's money under IC 6-1.1-18.5; tax under
IC 6-3.5-9; and
(D) has outstanding indebtedness that exceeds one and
eight-tenths percent (1.8%) of the township's adjusted value of
taxable property in the district as determined under
IC 36-1-15; or
(2) a township that:
(A) has been a controlled township during any part of the
preceding five (5) years;
(B) has a valid poor relief township assistance claim that the
county auditor cannot pay within thirty (30) days after the
claim is approved for payment under IC 12-2-1-31 (before its
repeal) or IC 12-20-20; and
(C) uses advances from the county from proceeds of bonds
issued under IC 12-2-1 (before its repeal) or this article.
SOURCE: IC 12-20-25-13; (04)IN1312.1.103. -->
SECTION 103. IC 12-20-25-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 13. (a) When the
management committee is appointed, the distressed township is a
controlled township until the requirements of section 41 of this chapter
are met.
(b) During the period that the management committee is in control
of the township trustee's office, the payment of poor relief township
assistance claims and the operating costs of the management
committee that:
(1) are incurred during the period the management committee is
in control of the township trustee's office; and
(2) exceed the revenue derived from the distressed township's
poor relief property township assistance tax levy; under
IC 6-3.5-9;
shall be made from support to the county from the distressed township
supplemental poor relief township assistance fund established under
section 51 of this chapter.
SOURCE: IC 12-20-25-30; (04)IN1312.1.104. -->
SECTION 104. IC 12-20-25-30 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 30. (a) The
control board shall supervise the township trustee in the administration
of poor relief. township assistance. The control board may appoint one
(1) of the board's members to monitor the trustee's compliance with this
chapter and to report discrepancies to the control board. The control
board may require the board's approval of an expenditure of more than
five hundred dollars ($500).
(b) Notwithstanding IC 36-6-6-11, the control board shall review
and may reduce or increase the township's budget and proposed tax
levy rate under IC 6-3.5-9 to be advertised by the county auditor. If
the control board finds that there will be insufficient revenues available
under this chapter for the township to pay valid poor relief township
assistance claims, the control board may consent to proposed
borrowing for poor relief township assistance under IC 12-20-23 or
IC 12-20-24.
(c) The control board may approve the number, pay, and duties of
employees who are employed for the distribution and administration of
the distressed township's poor relief township assistance program.
(d) The control board may require the township trustee to submit
reports on the amounts of poor relief township assistance by
categories, including the types of goods or services furnished and the
vendors who supplied the goods or services.
(e) The control board:
(1) shall operate the employment program implemented by the
management committee under section 15(a)(5) of this chapter;
and
(2) may require that a poor relief township assistance recipient
participate in a training program under IC 12-20-12-1.
(f) The control board shall establish income eligibility standards for
poor relief, township assistance, subject to the requirements of section
18 of this chapter.
SOURCE: IC 12-20-25-32; (04)IN1312.1.105. -->
SECTION 105. IC 12-20-25-32 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 32. (a) As soon
as the management committee has completed the financial,
compliance, economy, and efficiency audits required by section 15 of
this chapter, the management committee shall make a report to the
control board. The report must include the following:
(1) The findings of the financial, compliance, economy, and
efficiency audits.
(2) An itemization of each creditor's claims against the distressed
township that were found to be valid and reasonable.
(3) An itemization of each claim that was found to be invalid.
(4) An itemization of each claim that was found to be
unreasonable and on which no settlement was negotiated.
(5) A proposed operating budget for the township trustee's office.
(6) An estimate of future operating and debt service costs for poor
relief. township assistance.
(7) The amount of outstanding poor relief township assistance
bonds issued and loans incurred by the county and advancements
made by the county.
(8) The maximum permissible poor relief township assistance
levy of the township under IC 6-1.1-18.5.
(b) The county fiscal body may recommend a financial plan to the
management committee that ensures that future revenue increases, if
necessary, come from sources other than ad valorem property taxes
imposed on property within the distressed township and will
accomplish the purposes set forth in section 33(a)(2) of this chapter.
The financial plan may include any of the options set forth in section
34 of this chapter. The management committee shall include any
submitted plan in the committee's report to the control board.
SOURCE: IC 12-20-25-36; (04)IN1312.1.106. -->
SECTION 106. IC 12-20-25-36, AS AMENDED BY P.L.90-2002,
SECTION 359, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 36. (a) Notwithstanding
IC 6-1.1-17, if the county fiscal body:
(1) adopts an ordinance under section 35(b)(2) of this chapter; or
(2) fails to adopt an ordinance under section 35(b) of this chapter;
the department shall reduce the county's general fund budget and
increase the distressed township's poor relief township assistance
account budget in an amount sufficient to satisfy the requirements of
section 33(a)(2) of this chapter. The department shall notify the county
auditor and county treasurer of the county general fund reduction and
the county treasurer shall transfer from the county general fund to the
distressed township's poor relief township assistance account the
amount specified by the department.
(b) Notwithstanding IC 6-1.1-18.5, if a county is required to transfer
money to a distressed township's poor relief account under subsection
(a), the county may not appeal for an excessive levy under
IC 6-1.1-18.5 to replace money that is transferred from the county
general fund.
SOURCE: IC 12-20-25-40; (04)IN1312.1.107. -->
SECTION 107. IC 12-20-25-40 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 40. The county
treasurer shall deposit the disbursements from the treasurer of state in
a county fund to be known as the county income tax
poor relief
township assistance control fund. Notwithstanding IC 6-3.5-1.1,
IC 6-3.5-6, and IC 6-1.1-18.5, the county treasurer shall disburse the
money in the fund in the following priority:
(1) To ensure the payment within thirty (30) days of all valid poor
relief township assistance claims in the distressed township that
are not covered by subdivision (3).
(2) At the end of each calendar year, to redeem any outstanding
bonds issued or repay loans incurred by the county for poor relief
township assistance purposes under IC 12-2-4.5 (before its
repeal), IC 12-2-5 (before its repeal), IC 12-20-23, or IC 12-20-24
to the extent the proceeds of the bonds or loans were advanced to
the distressed township.
(3) To pay claims approved under section 27 or 28 of this chapter
(or IC 12-2-14-22 or IC 12-2-14-23 before their repeal).
(4) As provided in IC 6-3.5-6 if the county option income tax is
imposed under this chapter. If the county adjusted gross income
tax is imposed under this chapter, to provide property tax
replacement credits for each civil taxing unit and school
corporation in the county as provided in IC 6-3.5-1.1. No part of
the county adjusted gross income tax revenue is considered a
certified share of a governmental unit as provided in
IC 6-3.5-1.1-15. In addition, the county adjusted gross income tax
revenue (except for the county adjusted gross income tax
revenues that are to be treated as property tax replacements under
this subdivision) is in addition to and not a part of the revenue of
the township for purposes of determining the township's
maximum permissible property tax levy under IC 6-1.1-18.5.
SOURCE: IC 12-20-25-41; (04)IN1312.1.108. -->
SECTION 108. IC 12-20-25-41, AS AMENDED BY P.L.90-2002,
SECTION 360, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 41. (a) As used in subsection
(c), "advance" refers to money provided to a distressed township from
the state general fund under section 38 of this chapter.
(b) As used in subsection (c), "support" refers to money provided
from the distressed township supplemental poor relief township
assistance fund established by section 51 of this chapter to pay poor
relief township assistance claims and the operating costs of the
management committee during the period the management committee
is in control of the township trustee's office.
(c) The controlled status of a township under this chapter terminates
at the end of a year if at that time the county, with respect to each
controlled township:
(1) has repaid:
(A) all state advances provided to the county under this
chapter; and
(B) state support provided to the county under this chapter if
the department has reduced the county's general fund budget
under section 36 of this chapter;
(2) has paid all valid poor relief township assistance claims in
the distressed township, including the claims approved under
section 27 or 28 of this chapter;
(3) will have sufficient money to pay, not more than thirty (30)
days after a claim is submitted for payment, all valid poor relief
township assistance claims in the distressed township that are
expected to be submitted in the following year as determined by
the control board, excluding any advances from the state,
revenues from short term loans from the county or a financial
institution under IC 12-2-4.5 (before its repeal) or IC 12-20-24,
and proceeds from bonds issued under IC 12-2-1 (before its
repeal), IC 12-2-5 (before its repeal), or this article; and
(4) has no bonds outstanding that were issued to pay for poor
relief township assistance in the distressed township.
(d) Notwithstanding IC 6-3.5-1.1 and IC 6-3.5-6, if the control board
finds that:
(1) the requirements of subsection (c)(1), (c)(2), and (c)(4) are
satisfied; and
(2) the requirements of subsection (c)(3) cannot be satisfied
because the township's maximum permissible ad valorem
property tax levy under IC 6-3.5-9 provides insufficient revenue
to ensure the payment of all valid poor relief township assistance
claims in the distressed township that will be incurred during the
year following the termination of the controlled status of the
township;
the county fiscal body may dedicate to the provision of poor relief,
township assistance, from the county adjusted gross income tax or the
county option income tax imposed as a result of adopting a financial
plan under section 35 of this chapter, an amount necessary to satisfy the
requirements of subsection (c)(3).
(e) If the control board finds that the income tax dedicated under
subsection (d) will satisfy the requirements of subsection (c)(3), the
controlled status of the township under this chapter terminates at the
end of the year in which the control board makes the board's finding.
SOURCE: IC 12-20-25-42; (04)IN1312.1.109. -->
SECTION 109. IC 12-20-25-42, AS AMENDED BY P.L.90-2002,
SECTION 361, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 42. (a) This section applies to
a township that was certified a distressed township before January 1,
1988.
(b) The controlled status of the distressed township is terminated on
July 1, 1989, if the department finds that the following conditions exist:
(1) All valid poor relief township assistance claims in the
distressed township, including the claims approved under
IC 12-2-14-22 (before its repeal), IC 12-2-14-23 (before its
repeal), or section 27 or 28 of this chapter, have been paid, except
for the following:
(A) Claims under litigation before the date of the board's
finding.
(B) Obligations owed to other political subdivisions.
(2) The township has no bonds outstanding that were issued to
pay for poor relief township assistance in the distressed
township.
(c) Notwithstanding section 4(2) of this chapter, if a township that
has had the township's distressed status terminated under subsection (b)
uses advances from the county from proceeds of bonds issued under
IC 12-2-1 (before its repeal) or this article to pay poor relief township
assistance claims more than one (1) time in the five (5) years following
the termination of the township's distressed status, the township must
have the township's civil and poor relief township assistance budgets
reviewed and approved by the county fiscal body in each year. that a
tax is levied against the property in the township to repay the advances.
The decision of the county fiscal body may be appealed to the
department.
(d) Notwithstanding IC 12-2-5-6 (before its repeal), IC 12-2-5-8
(before its repeal), IC 12-20-23-15, and IC 12-20-23-19, the aggregate
principal amount of any outstanding debt that is incurred to pay poor
relief township assistance claims during the five (5) years following
the termination of the township's distressed status under subsection (b)
and that is in excess of one-tenth percent (0.1%) of the adjusted valued
of taxable property in the township as determined under IC 36-1-15 is
the direct general obligation of the county.
SOURCE: IC 12-20-25-43; (04)IN1312.1.110. -->
SECTION 110. IC 12-20-25-43, AS AMENDED BY P.L.90-2002,
SECTION 362, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 43. Notwithstanding
IC 6-3.5-1.1 and IC 6-3.5-6, if:
(1) there has been a controlled township in a county;
(2) the township that has been controlled has levied the township's
maximum permissible ad valorem property tax levy for
poor
relief; township assistance;
(3) the maximum permissible
ad valorem property tax
levy under
IC 6-3.5-9 is insufficient to ensure the payment within thirty (30)
days of all valid poor relief township assistance claims in the
township; and
(4) the county adjusted gross income tax or county option income
tax is in effect in the county as a result of adopting a financial
plan under this chapter;
the county fiscal body shall dedicate from the county adjusted gross
income tax or county option income tax imposed under this chapter an
amount of revenue determined by the department to be necessary to
ensure the payment within thirty (30) days of all poor relief township
assistance claims in the township that has been controlled. The county
fiscal body shall distribute any income tax revenues dedicated under
this section before the fiscal body makes any other distributions in
accordance with this chapter. Notwithstanding section 45 of this
chapter, the county fiscal body may not reduce the county option
income tax rate below the rate necessary to satisfy the requirements of
this section.
SOURCE: IC 12-20-25-49; (04)IN1312.1.111. -->
SECTION 111. IC 12-20-25-49, AS AMENDED BY P.L.90-2002,
SECTION 363, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 49. Each distressed township
shall take all action necessary to levy the maximum permissible ad
valorem property tax levy for poor relief township assistance
permitted under IC 6-1.1-18.5. IC 6-3.5-9. If a distressed township fails
to take this action, the department shall adjust in the board's certificate
of levies of governmental entities in the county, the township's
proposed levy tax so that the levy tax is the maximum permissible ad
valorem property tax. levy.
SOURCE: IC 12-20-26-1; (04)IN1312.1.112. -->
SECTION 112. IC 12-20-26-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1. In a county in
which a tax has been levied and raised imposed for the payment of
notes and interest on the notes issued by the board of commissioners
for the purpose of paying poor relief township assistance claims
against a township, the county auditor shall transfer the balance of
money that remains after paying all notes and interest to the county
general fund to the credit of the township poor fund of the township in
which the money was raised.
SOURCE: IC 12-26-10-4; (04)IN1312.1.113. -->
SECTION 113. IC 12-26-10-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. If the comfort
and the care of an individual are not otherwise provided:
(1) from the individual's estate; or
(2) by the individual's relatives or friends; or
(3) through financial assistance from the division of family and
children or a county office;
the court may order the assistance furnished and paid for out of the
general fund of the county. through financial assistance from the
division of family and children.
SOURCE: IC 12-29-1-1; (04)IN1312.1.114. -->
SECTION 114. IC 12-29-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1. (a) The county
executive of a county may state shall authorize the furnishing of
financial assistance to the following:
(1) A community mental health center that is located or will be
located in the county.
(2) A community mental retardation and other developmental
disabilities center that is located or will be located in the county.
(b) Assistance authorized under this section shall be used for the
following purposes:
(1) Constructing a center.
(2) Operating a center.
(c) Upon request of the county executive, the county fiscal body
may appropriate annually from the county's general fund the money to
provide financial assistance for the purposes described in subsection
(b). The appropriation may not exceed the amount that could be
collected from an annual tax levy of not more than three and
thirty-three hundredths cents ($0.0333) on each one hundred dollars
($100) of taxable property within the county.
SOURCE: IC 12-29-3-6; (04)IN1312.1.115. -->
SECTION 115. IC 12-29-3-6, AS AMENDED BY P.L.64-2002,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 6. (a) As used in this section, "community
mental retardation and other developmental disabilities center" means
a community center that is:
(1) incorporated under IC 23-7-1.1 (before its repeal August 1,
1991) or IC 23-17;
(2) organized for the purpose of providing services for mentally
retarded and other individuals with a developmental disability;
(3) approved by the division of disability, aging, and rehabilitative
services; and
(4) accredited for the services provided by one (1) of the
following organizations:
(A) The Commission on Accreditation of Rehabilitation
Facilities (CARF), or its successor.
(B) The Council on Quality and Leadership in Supports for
People with Disabilities, or its successor.
(C) The Joint Commission on Accreditation of Healthcare
Organizations (JCAHO), or its successor.
(D) The National Commission on Quality Assurance, or its
successor.
(E) An independent national accreditation organization
approved by the secretary.
(b) The county executive of a county may state shall authorize the
furnishing of financial assistance to a community mental retardation
and other developmental disabilities center serving the county.
(c) Upon the request of the county executive, the county fiscal body
may appropriate annually, from the general fund of the county, money
to provide financial assistance in an amount not to exceed the amount
that could be collected from the annual tax levy of sixty-seven
hundredths of one cent ($0.0067) on each one hundred dollars ($100)
of taxable property.
SOURCE: IC 12-30-1-4; (04)IN1312.1.116. -->
SECTION 116. IC 12-30-1-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. The board of
commissioners of a county may appropriate money to raise the
amount necessary for the purchase of real property and the erection and
furnishing of the buildings for county homes under this chapter. the
board of commissioners of a county may assess a tax on property liable
to be assessed for raising a county revenue. The assessment may not
increase the rates at which the property is assessed by the laws existing
when the tax is assessed by more than twenty-five percent (25%).
SOURCE: IC 12-30-4-1; (04)IN1312.1.117. -->
SECTION 117. IC 12-30-4-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1. Every county
that maintains, in addition to any other charitable institution permitted
by law, a county home that provides for the care of indigent individuals
as provided by law:
(1) shall receive and support in the county home indigent
individuals who:
(A) are lawfully settled in the county; and
(B) placed in the county home by the township trustee as the
administrator of poor relief, township assistance, with the
consent of the board of commissioners of the county; or
(2) may contract with other counties or with other charitable
institutions located in Indiana for the relief and support of
indigent individuals maintained as a public charge of the county.
and may levy taxes for that purpose.
SOURCE: IC 12-30-4-11; (04)IN1312.1.118. -->
SECTION 118. IC 12-30-4-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 11. (a) Each
township trustee as the administrator of
poor relief township
assistance shall pay to the county the amount fixed for each individual
admitted into the county home or other charitable institution from the
township, except those otherwise able to pay the cost of their care from
their own resources or from other assistance awards. Except as
provided in subsection (b), the amount that may be charged to the
township may not exceed one hundred dollars ($100) per month per
individual.
(b) This subsection applies to a county having a population of more
than four hundred thousand (400,000) but less than seven hundred
thousand (700,000). The amount charged the township per individual
may not exceed forty-eight dollars ($48) per month or twelve dollars
($12) per week.
(c) Each township shall levy a tax under IC 6-3.5-9 sufficient to
meet those expenses.
(d) Payment and settlement shall be made in July and December of
each year for the preceding year.
SOURCE: IC 12-30-7-6; (04)IN1312.1.119. -->
SECTION 119. IC 12-30-7-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 6. The board of
commissioners of a county shall, with the approval of the county
council, cause to be assessed, levied, and collected the amounts of
money the board of commissioners considers necessary for the
following:
(1) Suitable lands, buildings, and improvements for the health
center.
(2) Maintenance of the health center.
(3) All other necessary expenditures.
SOURCE: IC 12-30-7-8; (04)IN1312.1.120. -->
SECTION 120. IC 12-30-7-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 8. The board of
commissioners shall annually recommend to the county fiscal body a
tax rate and levy to provide the necessary money for the operation and
maintenance of the health center based upon the estimates of the board
of managers of the health center. The county fiscal body shall adopt a
budget and fix a levy and rate of taxation under IC 6-3.5-9 that, when
added to all estimated health center revenues, is sufficient to provide
the amounts appropriated for the health center. The county fiscal body
may make additional appropriations from the county general fund to
make up deficits in estimated revenue or for emergencies.
SOURCE: IC 12-30-7-29; (04)IN1312.1.121. -->
SECTION 121. IC 12-30-7-29 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 29. (a) The board
of commissioners of a county that does not have a health center as
provided in this chapter may contract for the care and treatment of the
county's residents afflicted with tuberculosis and other chronic diseases
with a county that has established a health center under this chapter.
The board of commissioners of the county seeking care and treatment
for the county's residents may contract directly with the health center.
(b) The county fiscal body of a contracting county shall appropriate
out of the county's general fund an amount of money sufficient to meet
the terms of the contract, and the money appropriated constitutes a
special fund for that purpose. The:
(1) contracting county may levy a tax under IC 6-3.5-9 in an
amount necessary to meet the terms of the contract; or
(2) commissioners may pay the amount due the health center out
of the general fund.
SOURCE: IC 13-18-8-3; (04)IN1312.1.122. -->
SECTION 122. IC 13-18-8-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 3. If the estimated
cost of the steps necessary for a municipal corporation to comply with
a final order is great enough that the bond issue necessary to finance
the project would not raise the total outstanding bonded indebtedness
of the municipal corporation in excess of the constitutional limit, the
necessary bonds
(1) may be issued as a direct obligation of the municipal
corporation. and
(2) may be retired by a general tax levy against all the property
within the limit of the municipal corporation listed and assessed
for taxation.
SOURCE: IC 13-21-3-12; (04)IN1312.1.123. -->
SECTION 123. IC 13-21-3-12, AS AMENDED BY P.L.178-2002,
SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 12. Except as provided in section 14.5 of this
chapter, the powers of a district include the following:
(1) The power to develop and implement a district solid waste
management plan under IC 13-21-5.
(2) The power to impose district fees on the final disposal of solid
waste within the district under IC 13-21-13.
(3) The power to receive and disburse money, if the primary
purpose of activities undertaken under this subdivision is to carry
out the provisions of this article.
(4) The power to sue and be sued.
(5) The power to plan, design, construct, finance, manage, own,
lease, operate, and maintain facilities for solid waste
management.
(6) The power to enter with any person into a contract or an
agreement that is necessary or incidental to the management of
solid waste. Contracts or agreements that may be entered into
under this subdivision include those for the following:
(A) The design, construction, operation, financing, ownership,
or maintenance of facilities by the district or any other person.
(B) The managing or disposal of solid waste.
(C) The sale or other disposition of materials or products
generated by a facility.
Notwithstanding any other statute, the maximum term of a
contract or an agreement described in this subdivision may not
exceed forty (40) years.
(7) The power to enter into agreements for the leasing of facilities
in accordance with IC 36-1-10 or IC 36-9-30.
(8) The power to purchase, lease, or otherwise acquire real or
personal property for the management or disposal of solid waste.
(9) The power to sell or lease any facility or part of a facility to
any person.
(10) The power to make and contract for plans, surveys, studies,
and investigations necessary for the management or disposal of
solid waste.
(11) The power to enter upon property to make surveys,
soundings, borings, and examinations.
(12) The power to:
(A) accept gifts, grants, loans of money, other property, or
services from any source, public or private; and
(B) comply with the terms of the gift, grant, or loan.
(13) The power to levy a tax within the district to pay costs of
operation in connection with solid waste management, subject to
the following:
(A) Regular budget and tax levy procedures.
(B) Section 16 of this chapter.
However, except as provided in sections 15 and 15.5 of this
chapter, a property tax rate imposed under this article may not
exceed eight and thirty-three hundredths cents ($0.0833) on each
one hundred dollars ($100) of assessed valuation of property in
the district.
(14) (13) The power to borrow in anticipation of taxes.
(15) (14) The power to hire the personnel necessary for the
management or disposal of solid waste in accordance with an
approved budget and to contract for professional services.
(16) (15) The power to otherwise do all things necessary for the:
(A) reduction, management, and disposal of solid waste; and
(B) recovery of waste products from the solid waste stream;
if the primary purpose of activities undertaken under this
subdivision is to carry out the provisions of this article.
(17) (16) The power to adopt resolutions that have the force of
law. However, a resolution is not effective in a municipality
unless the municipality adopts the language of the resolution by
ordinance or resolution.
(18) (17) The power to do the following:
(A) Implement a household hazardous waste and conditionally
exempt small quantity generator (as described in 40 CFR
261.5(a)) collection and disposal project.
(B) Apply for a household hazardous waste collection and
disposal project grant under IC 13-20-20 and carry out all
commitments contained in a grant application.
(C) Establish and maintain a program of self-insurance for a
household hazardous waste and conditionally exempt small
quantity generator (as described in 40 CFR 261.5(a))
collection and disposal project, so that at the end of the
district's fiscal year the unused and unencumbered balance of
appropriated money reverts to the district's general fund only
if the district's board specifically provides by resolution to
discontinue the self-insurance fund.
(D) Apply for a household hazardous waste project grant as
described in IC 13-20-22-2 and carry out all commitments
contained in a grant application.
(19) (18) The power to enter into an interlocal cooperation
agreement under IC 36-1-7 to obtain:
(A) fiscal;
(B) administrative;
(C) managerial; or
(D) operational;
services from a county or municipality.
(20) (19) The power to compensate advisory committee members
for attending meetings at a rate determined by the board.
(21) (20) The power to reimburse board and advisory committee
members for travel and related expenses at a rate determined by
the board.
(22) (21) In a joint district, the power to pay a fee from district
money to the counties in the district in which a final disposal
facility is located.
(23) (22) The power to make grants or loans of:
(A) money;
(B) property; or
(C) services;
to public or private recycling programs, composting programs, or
any other programs that reuse any component of the waste stream
as a material component of another product, if the primary
purpose of activities undertaken under this subdivision is to carry
out the provisions of this article.
(24) (23) The power to establish by resolution a nonreverting
capital fund. A district's board may appropriate money in the fund
for:
(A) equipping;
(B) expanding;
(C) modifying; or
(D) remodeling;
an existing facility. Expenditures from a capital fund established
under this subdivision must further the goals and objectives
contained in a district's solid waste management plan. Not more
than five percent (5%) of the district's total annual budget for the
year may be transferred to the capital fund that year. The balance
in the capital fund may not exceed twenty-five percent (25%) of
the district's total annual budget. If a district's board determines
by resolution that a part of a capital fund will not be needed to
further the goals and objectives contained in the district's solid
waste management plan, that part of the capital fund may be
transferred to the district's general fund, to be used to offset
tipping fees, property tax revenues, or both tipping fees and
property tax revenues.
(25) (24) The power to conduct promotional or educational
programs that include giving awards and incentives that further
the district's solid waste management plan.
(26) (25) The power to conduct educational programs under
IC 13-20-17.5 to provide information to the public concerning:
(A) the reuse and recycling of mercury in:
(i) mercury commodities; and
(ii) mercury-added products; and
(B) collection programs available to the public for:
(i) mercury commodities; and
(ii) mercury-added products.
(27) (26) The power to implement mercury collection programs
under IC 13-20-17.5 for the public and small businesses.
SOURCE: IC 13-21-7-9; (04)IN1312.1.124. -->
SECTION 124. IC 13-21-7-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 9. (a) For the
purpose of raising money to pay waste management district bonds
issued under this chapter or IC 13-9.5-9-3 (before its repeal), the board
shall levy each year
a special tax upon all the real property of the
district in the amount and the manner necessary to meet and pay the
following:
(1) The principal of the waste management district bonds as the
bonds severally mature.
(2) All accruing interest on the bonds.
(b) The tax constitutes the amount of benefits resulting to all of the
property in the district. a tax under IC 6-3.5-9.
SOURCE: IC 14-9-9-8; (04)IN1312.1.125. -->
SECTION 125. IC 14-9-9-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 8. (a) If a county
is awarded a grant under this chapter, the county must establish a
special account within the county's general fund. The grant must be
deposited in the special account for the county sheriff's exclusive use
in providing law enforcement services on lakes located within the
county.
(b) The county sheriff may use grant money as authorized under this
chapter without appropriation. However, the county sheriff must
provide itemized receipts for expenditures of money granted from the
fund for inspection and review upon request of the county fiscal body.
(c) The receipt of a grant under this chapter may not be used as a
basis for lowering the county's maximum permissible ad valorem
property tax levy.
SOURCE: IC 14-23-3-3; (04)IN1312.1.126. -->
SECTION 126. IC 14-23-3-3, AS AMENDED BY P.L.272-2003,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 3. Annually (a) Before January 1, 2006, there
shall annually be levied and collected as other state ad valorem
property taxes are levied and collected the amount of sixteen
hundredths of one cent ($0.0016) upon each one hundred dollars
($100) worth of taxable property in Indiana. An ad valorem property
tax may not be levied under this section for property taxes first due
and payable after December 31, 2005.
(b) The ad valorem property tax imposed under this section
shall be collected as other ad valorem property taxes are collected.
The county where the property tax is levied shall transfer the
amounts collected from the levy to the treasurer of state for deposit
in the fund.
(c) The money collected resulting from one hundred fifty-seven
thousandths of one cent ($0.00157) of the rate shall be paid into the
fund. The money collected resulting from three thousandths of one cent
($0.00003) is appropriated to the budget agency for purposes of
department of local government finance data base management.
(d) This section expires June 30, 2006.
SOURCE: IC 14-25-11-11; (04)IN1312.1.127. -->
SECTION 127. IC 14-25-11-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 11.
(a) The
legislative body of an eligible entity receiving a loan under this chapter
or IC 13-3-7 (before its repeal) may levy a special annual tax on all
taxable property located within the geographic boundaries of the entity.
The tax:
(1) is in addition to any other tax authorized by statute; and
(2) must be levied at rates that will produce sufficient revenue to
pay the annual installment of principal and interest.
The tax at the rate authorized may be in addition to the maximum
annual rates prescribed by law.
(b) The proceeds of the special tax shall be kept and maintained in
a separate and special fund for the payment of principal and interest
only.
(c) Other statutes providing for petitions, notices, and remonstrances
before incurring debt do not apply to the following:
(1) the loan.
(2) The tax rate necessary to make payments.
SOURCE: IC 14-26-8-50; (04)IN1312.1.128. -->
SECTION 128. IC 14-26-8-50 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 50. The fiscal
body of a county concerned in work authorized in this chapter may,
upon request of the board of county commissioners, approve the levy
and collection of a tax upon all real property in the county to raise
money to carry out this chapter.
SOURCE: IC 14-27-6-30; (04)IN1312.1.129. -->
SECTION 129. IC 14-27-6-30 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 30. The board
may perform all acts necessary or reasonably incident to carrying out
the purposes of this chapter, including the following powers:
(1) To sue and be sued collectively by the board's name
"__________ Levee Authority", with service of process being had
on the president of the board. However, costs may not be taxed
against the board or any of the board's members in an action.
(2) To have exclusive jurisdiction within the district.
(3) To adopt ordinances to protect all property owned or managed
by the board.
(4)
To adopt an annual budget and levy taxes not to exceed two
and sixty-seven hundredths cents ($0.0267) on each one hundred
dollars ($100) of assessed property in accordance with this
chapter. To contract with other political subdivisions and state
agencies under IC 36-1-7 for:
(A) the provision of services;
(B) the rental or use of equipment or facilities; or
(C) the joint purchase and use of equipment or facilities;
considered proper by the contracting parties for use in the
operation, maintenance, or construction of a levee operated
under this chapter.
(5) To incur indebtedness in the name of the authority in
accordance with this chapter.
(6) To:
(A) acquire real, personal, or mixed property by deed,
purchase, lease, condemnation, or otherwise; and
(B) dispose of the property;
for flood control purposes.
(7) To do the following:
(A) Receive gifts, donations, bequests, and public trusts.
(B) Agree to accompanying conditions and terms and bind the
authority to carry out the terms and conditions.
(8) To determine matters of policy regarding internal organization
and operating procedures not specifically provided for otherwise.
(9) In addition to all other powers conferred by this chapter and
IC 14-27-3, to do the following:
(A) Cooperate with an officer or agency of the federal
government in the performance of any of the work authorized
by this chapter.
(B) Accept labor, material, or financial assistance.
(C) Do all things not inconsistent with this chapter necessary
to satisfy the requirements of the federal authorities for the
purpose of obtaining aid from the federal government.
(10) To purchase supplies, materials, and equipment to carry out
the duties and functions of the board in accordance with
procedures adopted by the board and in accordance with general
law.
(11) To employ personnel as necessary to carry out the duties,
functions, and powers of the board.
(12) To sell surplus or unneeded property in accordance with
procedures prescribed by the board.
(13) To adopt administrative rules to do the following:
(A) Carry out the board's powers and duties.
(B) Govern the duties of the board's officers, employees, and
personnel.
(C) Govern the internal management of the affairs of the
board.
The board shall publish all rules adopted by the board for at least
ten (10) days in a newspaper of general circulation printed in the
district.
(14) To fix the salaries or compensation of the officers and
employees of the authority, except as otherwise provided by this
chapter.
(15) To carry out the purposes and objects of the authority.
(16) To adopt and use a seal.
(17) To:
(A) acquire land, easements, and rights-of-way; and
(B) establish, construct, improve, equip, maintain, control,
lease, and regulate levees and the land owned adjacent to the
levees, either within or outside the district;
for flood prevention purposes. However, if at the time of the
creation of the levee authority a political subdivision owns or
controls a levee, upon the qualification of the members of the
board the exclusive control, management, and authority over each
levee owned or controlled by a political subdivision shall be
transferred to the board without the passage of an ordinance. The
board of public works of the political subdivision or other persons
having possession or control of a levee shall immediately deliver
to the board all personal property and records, books, maps, and
other papers and documents relating to the levee.
(18) To:
(A) elect a secretary from the board's membership; or
(B) employ a secretary;
and fix the compensation of the secretary.
(19) To do the following:
(A) Employ superintendents, managers, engineers, surveyors,
attorneys, clerks, guards, mechanics, laborers, and all other
employees the board considers expedient. All employees shall
be selected and appointed irrespective of political affiliations.
(B) Prescribe and assign the duties and authority of the
employees.
(C) Fix the compensation to be paid to the persons employed
by the board in accordance with appropriations made by the
city fiscal body.
(D) Require a bond on any officer or employee of the authority
in the amount, upon the terms and conditions, and with surety
to the approval of the board.
(20) To adopt rules not in conflict with:
(A) Indiana law;
(B) the ordinances of the city; or
(C) the laws or regulations of the United States and the United
States Corps of Army Engineers;
regulating the construction, maintenance, and control of the
board's levees and other property under the board's control.
(21) To establish the board's own detail or department of police
or to hire guards to execute the orders and enforce the rules of the
board.
(22) To permit the federal government to do the following:
(A) Construct or repair, on land or rights-of-way owned by the
authority, levees, dikes, breakwaters, pumping stations,
syphons, and flood gates.
(B) Construct or repair sewers, ditches, drains, diversion
channels, and watercourses if necessary in the actual
construction, repair, and maintenance of a levee and along
land or rights-of-way owned by the authority.
(23) To do the following:
(A) Construct, maintain, and repair levees, dikes, breakwaters,
pumping stations, and flood gates.
(B) Construct or repair sewers, ditches, drains, diversion
channels, and watercourses if necessary in the actual
construction, repair, and maintenance of a levee.
(24) To sell machinery, equipment, or material under the control
of the board that the board determines is not required for levee
purposes. The proceeds derived from the sale shall be deposited
with the treasurer of the authority.
(25) To negotiate and execute:
(A) contracts of sale or purchase;
(B) leases;
(C) contracts for personal services, materials, supplies, or
equipment; or
(D) any other transaction, business or otherwise;
relating to a levee under the board's control and operation.
However, if the board determines to sell part or all of levee land,
buildings, or improvements owned by the authority, the sale must
be in accordance with statute. If personal property under the
control of the board valued in excess of five hundred dollars
($500) is to be sold, the board shall sell to the highest and best
bidder after due publication of notice of the sale.
(26) To contract with other political subdivisions and state
agencies under IC 36-1-7 for:
(A) the provision of services;
(B) the rental or use of equipment or facilities; or
(C) the joint purchase and use of equipment or facilities;
considered proper by the contracting parties for use in the
operation, maintenance, or construction of a levee operated under
this chapter.
SOURCE: IC 14-27-6-40; (04)IN1312.1.130. -->
SECTION 130. IC 14-27-6-40, AS AMENDED BY P.L.90-2002,
SECTION 371, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 40. The provisions of IC 5-1,
and IC 6-1.1-20, and IC 36-3.1 relating to the following apply to
proceedings under this chapter:
(1) The filing of a petition requesting the issuance of bonds and
giving notice of the petition.
(2) The giving of notice of determination to issue bonds.
(3) The giving of notice of hearing on the appropriation of the
proceeds of bonds and the right of taxpayers to appeal and be
heard on the proposed appropriation.
(4) The approval of the appropriation by the department of local
government finance.
(5) The right of taxpayers to remonstrate against the issuance of
bonds.
(6) The sale of bonds at public sale for not less than the par value.
SOURCE: IC 14-27-6-41; (04)IN1312.1.131. -->
SECTION 131. IC 14-27-6-41, AS AMENDED BY
P.L.192-2002(ss), SECTION 157, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 41. (a) All bonds
issued under this chapter or under IC 13-2-31 (before its repeal) are the
direct general obligations of the authority issuing the bonds and are
payable out of unlimited ad valorem taxes that shall be levied and
collected on all the taxable property within the district. All officials and
bodies involved with the levying of taxes for the district shall ensure
that sufficient levies are made to meet the principal and interest on the
bonds at the time fixed for payment without regard to any other statute.
money available to the authority.
(b) The bonds issued under this chapter or under IC 13-2-31 (before
its repeal) are exempt from taxation for all purposes.
SOURCE: IC 14-27-6-48; (04)IN1312.1.132. -->
SECTION 132. IC 14-27-6-48 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 48. (a) The board
may provide a cumulative building fund in compliance with
IC 6-1.1-41 to provide for the erection of:
(1) levees, gates, and pumping stations; or
(2) other facilities or the addition to or improvement of the
facilities on the levees;
needed to carry out this chapter.
(b) In compliance with IC 6-1.1-41, the board may levy a property
tax not to exceed sixty-seven hundredths of one cent ($0.0067) on each
one hundred dollars ($100) of taxable property within the district. As
the tax is collected, the tax may be invested in negotiable United States
bonds or other securities that the federal government has the direct
obligation to pay.
(c) Any money of the cumulative building fund not invested in
government obligations shall be withdrawn from the cumulative
building fund in the same manner as money is regularly withdrawn
from a general fund but without further or additional appropriation.
SOURCE: IC 14-28-5-13; (04)IN1312.1.133. -->
SECTION 133. IC 14-28-5-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 13. A local unit
receiving a loan under:
(1) this chapter; or
(2) IC 13-2-23 (before its repeal);
may levy an annual tax on personal and real property located within the
geographical limits of the local unit appropriate money for flood
control purposes. The tax is in addition to any other tax authorized by
law to be levied for flood control purposes. The tax shall be levied at
the rate that will produce sufficient revenue to pay the annual
installment and interest on a loan made under this chapter or under
IC 13-2-23 (before its repeal). The tax at the rate authorized in this
section is in addition to the maximum annual rates prescribed by law.
SOURCE: IC 14-32-5-5; (04)IN1312.1.134. -->
SECTION 134. IC 14-32-5-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 5. A district may
not do any of the following:
(1) Exercise the right of eminent domain.
(2) Incur indebtedness beyond available money.
(3) Issue bonds.
(4) Take contributions by exactions or persuasions. However, the
district may accept voluntary contributions from any source if the
following conditions are met:
(A) The donations are offered for the sole and exclusive
purpose of promoting soil and water conservation within the
district.
(B) The district satisfactorily guarantees to the donors the
faithful use of the donations for that purpose.
(5) Engage in:
(A) the marketing of farm products; or
(B) the buying and selling of farm supplies;
other than those products or supplies used or needed directly or
indirectly in soil and water conservation work.
(6) Engage in agricultural research or agricultural extension
teaching except in cooperation with Purdue University.
(7) Levy taxes.
(8) Make or levy benefit assessments or any other kind of special
assessments.
SOURCE: IC 14-33-2-4; (04)IN1312.1.135. -->
SECTION 135. IC 14-33-2-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. A petition must
contain the following:
(1) The name for the proposed district, which should be in the
form of "_________ Conservancy District".
(2) A description of the territory to be included, not necessarily by
metes and bounds, but sufficiently accurate to inform the court
and apprise the landowners of the possibility of the inclusion of
their land in the district.
(3) A statement of each specific purpose for which the district is
to be established.
(4) A statement of the necessity of accomplishing each purpose.
(5) A statement that the creation of the district will be conducive
to the public health, safety, or welfare.
(6) A statement that the costs and damages of and to be paid
solely by the district will probably be less than the benefits
received in the district. If the purpose is declared to be water
supply or sewage disposal, this statement need not be included.
(7) Whether the petition is conditioned upon a grant of federal or
state money, or both, identifying the money upon which the
petition is conditioned.
(8) Whether conditions attached to federal or state aid, or both,
are acceptable if the federal or state government, or both, offer a
grant of money.
(9) Whether maintenance and operation of the works of
improvement necessary to accomplish any or all of the purposes
will be paid for:
(A) solely by annual levy of the special benefits tax;
(B) (A) by both annual levy of the special benefits tax and an
annual special assessment on land found to be exceptionally
benefited if exceptional benefits are expected to exist; or
(C) (B) by use of any other method provided by statute as long
as the proportion between the tax and assessment is in
approximately the same ratio as used to pay the cost of
establishing the district and placing the district plan into
operation.
(10) The number of directors to serve on the board, which must
be three (3), five (5), seven (7), or nine (9).
(11) A statement of the division of the proposed district into
areas, which must be equal in number to the number of directors.
SOURCE: IC 14-33-5.4-4; (04)IN1312.1.136. -->
SECTION 136. IC 14-33-5.4-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. (a) The auditor
of each county shall, at least forty-five (45) days before the election of
directors of the district, provide the district with a current list of
freeholders that sets forth:
(1) each parcel of real property that is
(A) located within the county and the district; and
(B) subject to property tax under IC 6-1.1; and
(2) the name of each individual who is identified in property tax
records as the holder of a freeholder's interest in a parcel of
property described in subdivision (1).
(b) To be eligible to vote in an election of directors of a district:
(1) an individual must have a freeholder's interest in real property
listed on the current tax list provided under subsection (a); and
(2) the individual's name must appear on the list of freeholders
provided under subsection (a).
(c) Before casting a vote at a polling place, a freeholder shall sign
the list of freeholders in the presence of the secretary of the district or
an election clerk appointed under section 3(h) of this chapter. The
freeholder shall sign the list in the space opposite the name of the
freeholder on the list.
(d) Notwithstanding subsection (b)(2), if:
(1) a freeholder's name does not appear on the list of freeholders;
and
(2) the secretary of the district or an election clerk finds that the
freeholder's name was erroneously omitted from the list;
the secretary or clerk shall place the freeholder's name on the list. After
the freeholder's name is placed on the list, the freeholder is entitled to
cast a ballot in the election.
(e) After placing a freeholder's name on the list under subsection
(d), the secretary or clerk shall mark the list opposite the name of the
freeholder who cast that vote to note the receipt of a valid written ballot
vote from the freeholder.
SOURCE: IC 14-33-6-13; (04)IN1312.1.137. -->
SECTION 137. IC 14-33-6-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 13. (a) The board
shall place the district plan in operation by constructing all works and
maintaining the works in accordance with the district plan.
(b) If necessary to discharge these responsibilities, the board may do
the following:
(1)
Levy taxes on the real property in the district. Perform
necessary construction and maintenance work as follows:
(A) Outside the district.
(B) Outside Indiana if:
(i) there is voluntary agreement on the part of persons
outside Indiana; and
(ii) the work will confer benefits to the real property in
the district in excess of costs and damages to be paid by
the district.
(2) Make
special assessments on the real property in the district,
except the property that is exempt under IC 14-33-7-4, for
exceptional benefits to the property and further assessments pro
rata for maintenance and operation of the works of improvement.
(3) Issue bonds and short and long term notes.
(4) Incur other debts and liabilities.
(5) Exercise the power of eminent domain, both inside and
outside the boundaries of the district, in accordance with this
article or another eminent domain statute. In the exercise of this
power, due care shall be taken to minimize interference with other
public interests involved.
(6) Make payments for the fair value of all property taken under
eminent domain proceedings, and in cases that are appealed,
make the payments into court and proceed promptly in placing the
district plan in operation.
(7) Institute any type of civil legal proceedings in a court having
jurisdiction over the person or property in question.
(8) Purchase or rent property.
(9) Sell services or property that are produced incident to the
district plan at a fair and reasonable price.
(10) Make contracts or otherwise enter into agreements with
persons or federal or state agencies for construction, maintenance,
or operation of any part of the district.
(11) Receive and disburse money.
(12) Lease land and other assets to municipalities, counties, and
park boards of municipalities or counties, with the term and
annual rental adequate to meet the district's repayment schedule
for financing, if any, of the land and other assets leased.
Municipalities, counties, and park boards of municipalities or
counties may enter into leases without limitations of other statutes
regarding the receipt of petitions, the duration of the term of the
lease, or the distance of the land and other assets from the
corporate boundaries. The municipalities, counties, and park
boards may enter into leases:
(A) for terms as long as fifty (50) years;
(B) at locations that the municipalities, counties, and park
boards determine would benefit the municipalities or counties;
and
(C) upon terms, conditions, and covenants that are fair and
reasonable.
The board may pledge the rental income from the lease as revenue
for services or property produced incident to the operation of the
district.
(13) Perform necessary construction and maintenance work as
follows:
(A) Outside the district.
(B) Outside Indiana if:
(i) there is voluntary agreement on the part of persons
outside Indiana; and
(ii) the work will confer benefits to the real property in the
district in excess of costs and damages to be paid by the
district.
SOURCE: IC 14-33-7-2; (04)IN1312.1.138. -->
SECTION 138. IC 14-33-7-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. (a) This section
applies if:
(1) a petition filed for the establishment of a district states that:
(A) the purpose for establishing the district is providing water
supply, including treatment and distribution for domestic,
industrial, and public use;
and
(B) it is the election of the petitioners to accomplish the
purpose under IC 14-33-20;
and
(C) a special benefits tax will not be levied; and
(D) all costs will be paid for by sources other than the levy of
a special benefits tax; and
(2) the statements contained in subdivision (1) are incorporated
by the court into the order establishing the district.
(b)
The board may not levy a special benefits tax for the purpose
described in section 1(a)(1) of this chapter. All costs of accomplishing
the purpose must be paid for by the following:
(1) Receipt of revenues from the sale of water.
(2) An assessment against each tract of real property served by the
resulting water distribution system for the lesser of the following:
(A) Seventy-five dollars ($75).
(B) Five percent (5%) of the estimated average project cost
according to the district plan of serving each tract of real
property.
(c) In addition, the district may charge a fair and reasonable tap-in
fee for water service.
(d) An assessment is due within sixty (60) days after notice of the
assessment. The assessment is not considered an exceptional benefit,
but the provisions of this article pertaining to exceptional benefits
apply to the collection and enforcement of the assessment.
SOURCE: IC 14-33-7-6; (04)IN1312.1.139. -->
SECTION 139. IC 14-33-7-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 6. (a) The:
(1) cost of notice, including publication and mailing; and
(2) other costs of the court in the proceedings to establish the
district;
are payable out of the general money of the county in which the court
is sitting, without an appropriation having been made. The court shall
order the county auditor to issue a warrant for the payment.
(b) If the petition is dismissed, the costs shall be:
(1) collected from the petitioners or the sureties of the petitioners;
and
(2) repaid to the county.
(c) If the district is established, the board shall repay the county
from the first money collected from the levy of a tax or the collection
of an assessment.
SOURCE: IC 14-33-9-3; (04)IN1312.1.140. -->
SECTION 140. IC 14-33-9-3, AS AMENDED BY P.L.90-2002,
SECTION 375, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 3. (a) The board shall deduct
from the operation and maintenance expenses estimated under section
2 of this chapter the following:
(1) Any revenue actually received during the current year.
(2) Other money not obligated to paying or protecting the bonds
or notes of the district.
(b) The board shall carry forward the balance after making the
deduction required by subsection (a).
(c) The board shall next determine the amount of interest due and
the principal amount of bonds maturing the second year after the year
in which the board is meeting. To this amount the board shall add five
percent (5%) in the first year the board meets with bonds outstanding
to provide for contingencies. After that time and until all bonds are
retired, the board shall add the necessary amount to maintain a five
percent (5%) contingency reserve.
(d) If the board has been forced to borrow money for a short term for
a legitimate purpose, the board shall also determine the amount of
principal and interest due on the loan.
(e) The board shall then total the balance.
(f) From the assessment roll, the board shall then determine the
amount of unpaid installments due in the next year on assessments that
have been made and deduct this from the total. The board shall then
determine the necessary levy of the special benefits tax to provide
money to meet the expenses thus calculated.
(g) After review by the department of local government finance as
provided in section 1 of this chapter, the board of directors shall certify
to the auditor of each county for collection the levy of the tax and the
installment of any assessment.
SOURCE: IC 14-33-11-4; (04)IN1312.1.141. -->
SECTION 141. IC 14-33-11-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. (a) Revenue
bonds issued for the payment of works of improvement for the
collection, treatment, and disposal of sewage and other liquid wastes
may provide that the principal and interest shall be paid:
(1) solely from the net revenue of the sewage works, which is
gross revenues after deduction only for the reasonable expenses
of operation and maintenance; or
(2) from a combination of net revenue and other money available
to a district by:
(A) levy;
(B) special benefits taxes; (A) a tax under IC 6-3.5-9; or
(C) (B) assessment of exceptional benefits.
(b) The board may covenant with the holders of the bonds to pay:
(1) a certain percentage of principal and interest from the
revenue;
(2) a certain percentage from the other money to maintain a
reasonable reserve from the other money that may be used for
payment of principal and interest if the revenue is not sufficient;
or
(3) both.
SOURCE: IC 14-33-17-4; (04)IN1312.1.142. -->
SECTION 142. IC 14-33-17-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. (a) The
petitioners must post a bond sufficient to pay the cost of notice and all
costs of the court connected with the petition and election.
(b) If:
(1) the court dismisses the petition; or
(2) the majority of freeholders vote against merger;
the petitioners shall pay all costs associated with the proceedings and
the election.
(c) If a merger does take place under this chapter, the costs
associated with the proceedings and the election shall be paid out of the
general money of the county where the court is located. The district
shall repay the county from the first money collected from the levy of
a tax or the collection of an assessment.
SOURCE: IC 14-33-21-2; (04)IN1312.1.143. -->
SECTION 143. IC 14-33-21-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. A district may
establish a cumulative improvement fund
under IC 6-1.1-41 to provide
money for the construction, additional construction, or repair of the
works of improvement the district:
(1) is authorized to construct; and
(2) states in the district plan, or part of or amendment to the plan,
is a purpose of the fund.
SOURCE: IC 14-33-21-4; (04)IN1312.1.144. -->
SECTION 144. IC 14-33-21-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. (a) To provide
money for the fund, the board may place in the fund the following:
(1) Gifts or grants from a person or state or federal agency.
(2) Receipts of revenue from the sale of services or property
produced incident to the accomplishment of the purpose for
which the district is organized.
(3) Any other form of miscellaneous receipt, including tap-in fees
and connection fees.
(4) Levy of a special benefits tax in accordance with sections 5
through 10 of this chapter.
(5) (4) Collection of the exceptional benefits assessments or
installments of the assessments, but only in accordance with
section 11 of this chapter.
(b) The board shall state in the district plan or part of or amendment
to the plan the source or combination of sources that will finance the
fund.
SOURCE: IC 14-33-21-5; (04)IN1312.1.145. -->
SECTION 145. IC 14-33-21-5, AS AMENDED BY P.L.90-2002,
SECTION 377, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 5. The board may levy a
special benefits tax in compliance with IC 6-1.1-41 in an amount not
to exceed three and thirty-three hundredths cents ($0.0333) on each
one hundred dollars ($100) of real property in the district, except the
property that is exempt under IC 14-33-7-4. The board shall file with
the district plan or part of or amendment to the plan:
(1) the approval of the department of local government finance;
and
(2) any action taken to reduce or rescind the a tax levy. under
IC 6-3.5-9 for the purposes of this chapter.
SOURCE: IC 15-1-6-2; (04)IN1312.1.146. -->
SECTION 146. IC 15-1-6-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. (a) Whenever
the president or secretary of any such society or organization shall file
with the county auditor of any county, a petition signed by thirty (30)
or more resident freeholders of such county, requesting the board of
commissioners to make any allowance provided for in section 1 of this
chapter, the county auditor shall cause such petition, without the
signatures attached thereto, to be published in a newspaper of general
circulation printed and published in the county, and said auditor shall
in said notice give the time when such petition will be considered by
the board of county commissioners, which time shall be fixed by the
auditor for not less than thirty (30) days after the publication of such
notice. If on or before the time fixed in said notice for the consideration
of said petition by the board of county commissioners, a remonstrance
signed by more resident freeholders of the county than the number
signing the petition shall be filed with the county auditor protesting the
making of the allowance as petitioned for, the said board shall consider
such remonstrance and if it finds that it is signed by a greater number
of resident freeholders than the petition asking for an allowance, the
board of county commissioners shall have no authority to make an
allowance for such purpose and shall dismiss said petition and take no
further action thereon.
(b) Any such petition, after final acceptance by the board of county
commissioners, shall be effective for one (1) or more years, such time
to be determined by the board, but in no event for a longer period of
time than five (5) years.
(c) The county council shall have the power and authority to levy an
annual tax of not to exceed three and thirty-three hundredths cents
($0.0333) on each one hundred dollars ($100) of assessed valuation
may appropriate money for the purpose of constructing, operating, or
maintaining any building owned and operated by such agricultural
association. Provided, however, that such tax may be levied only until
the building has been constructed and in no event for a longer period
of time than five (5) years. After the building has been constructed the
county council may levy an annual tax of not to exceed sixty-seven
hundredths of one cent ($0.0067) on each one hundred dollars ($100)
of assessed valuation for the purpose of operating and maintaining such
building.
(d) Any agricultural association shall have the power and authority
to solicit and accept contributions of any kind or nature for the
development and maintenance of any of their projects.
SOURCE: IC 15-1.5-7-3; (04)IN1312.1.147. -->
SECTION 147. IC 15-1.5-7-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 3. (a) The fund consists
of the following:
(1) Revenue from the property tax imposed under IC 15-1.5-8
before January 1, 2006.
(2) Appropriations made by the general assembly.
(3) Interest accruing from investment of money in the fund.
(4) Certain proceeds from the operation of the fair.
(b) The fund is divided into the following accounts:
(1) Agricultural fair revolving contingency account.
(2) Other accounts established by the commission.
(c) The money credited to the agricultural fair revolving
contingency account may only be used to pay start-up expenses for the
fair each year. Money used to pay the start-up expenses from the
account shall be replaced using proceeds from the operation of the fair
before the proceeds may be used for any other purpose.
SOURCE: IC 15-1.5-8-1; (04)IN1312.1.148. -->
SECTION 148. IC 15-1.5-8-1, AS AMENDED BY P.L.272-2003,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 1. A tax is imposed upon all the taxable property
in the state at a rate of eight hundredths of a cent ($0.0008) for each
one hundred dollars ($100) of assessed valuation for property taxes
first due and payable before January 1, 2006. The state may not
impose an ad valorem property tax under this section for property
taxes first due and payable after December 31, 2005.
SOURCE: IC 15-1.5-8-5; (04)IN1312.1.149. -->
SECTION 149. IC 15-1.5-8-5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 5. This chapter expires December
31, 2005.
SOURCE: IC 15-2.1-7-1; (04)IN1312.1.150. -->
SECTION 150. IC 15-2.1-7-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1.
Testing.County Appropriation. Whenever the board determines that
the cattle within an accredited county shall be tested for bovine
tuberculosis to conform with federal regulations governing the
reaccreditation of a county, the county council of such county shall
make an appropriation of a sufficient amount of money to carry on such
work. but the appropriation shall not exceed a tax levy of three-fourths
(3/4) of a mill for each dollar of assessed valuation. The amount of
money required shall be determined by the board from the most reliable
source of information and shall reflect the number of cattle within the
county. The board, before July 1 of the year in which the appropriation
is to be made, shall notify the county auditor to have such amount of
money included in the county budget for the year in which the testing
of cattle for reaccreditation purposes is to be done. If the funds
appropriated by the county council in accordance with the estimates
submitted by the board are insufficient to complete the testing or any
retesting which may be necessary to meet the requirements for
reaccreditation, the board shall provide from its appropriation such
additional funds as are necessary to carry out the testing program.
SOURCE: IC 15-2.1-8-1; (04)IN1312.1.151. -->
SECTION 151. IC 15-2.1-8-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1.
Testing.County Appropriation. Whenever the board determines that
there shall be a testing program whereby cattle within a certified county
shall be tested for bovine brucellosis to conform with regulations
governing the recertification of a county, the county council of such
county shall make an appropriation of a sufficient amount of money to
carry on such testing program. but the appropriation shall not exceed
a tax levy of three-fourths (3/4) of a mill for each dollar of assessed
valuation. The amount of money required shall be determined by the
board from the most reliable source of information and shall reflect the
number of cattle within a county. The board before July 1 of the year
in which the appropriation is to be made shall notify the county auditor
to have such amount of money included in the county budget for the
year in which the testing of cattle for recertification purposes is to be
done.
SOURCE: IC 15-3-7-6; (04)IN1312.1.152. -->
SECTION 152. IC 15-3-7-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 6. The association
shall, either before or after the election of directors, cause their articles
of association to be filed in the office of the secretary of state and shall
also cause to be recorded in the recorder's office of each county in
which any part of the proposed horticultural and quarantine district
may be situated a duplicate copy of such articles of association, and
thereafter such association shall be a body politic and corporate, by the
name and style so adopted, and shall have and possess all the rights,
powers and privileges given to corporations, to sue and be sued, plead
and be pleaded, answer and be answered, in any court of competent
jurisdiction, borrow money and levy special assessments upon the
owners of the lands, orchards and trees and other fruit-bearing plants
situated therein, as hereinafter provided, and to rent, lease, purchase,
hold, sell and convey such personal property as may be necessary and
proper for the purposes and objects of the corporation. A majority of
the members of such association shall have the power to adopt by-laws
for the government of such horticultural and quarantine district and
make such rules as may be necessary to carry the same into force and
effect.
SOURCE: IC 15-3-7-12; (04)IN1312.1.153. -->
SECTION 153. IC 15-3-7-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 12. The board of
directors of any association shall administer the affairs of such
association under the provisions of this chapter, for any or all of the
following purposes:
First. To prevent the spread of contagious diseases among fruit, fruit
trees and fruit-bearing plants.
Second. To provide for the prevention, treatment, cure and
extirpation of fruit pests and diseases of fruit and fruit-bearing plants.
Third. To provide for the purchase and maintenance of spraying
machines, wagons or other necessary apparatus, to adequately spray
fruit trees or other fruit-bearing plants, and to hire workers and teams
to perform the required labor, and to incur the necessary expense to
carry out the purposes of this chapter.
Fourth. To hire experts to inspect fruit trees and fruit-bearing plants
found within such horticultural and quarantine district and to prescribe
the proper methods of treatment of any disease of such trees or plants
which may be found to exist.
Fifth. To levy such special assessments on the members from time
to time as may carry out the provisions of this chapter and the purposes
of such association.
Sixth. To actively cooperate with the state entomologist and the
county agents in precautionary measures to prevent the spread of
injurious insects and plant diseases within the district.
Seventh. To advise, direct and encourage the activities of the
association.
The board of directors of any association may hire experts to inspect
fruit trees and fruit-bearing plants, and to prescribe the proper methods
of treatment of any diseases of such trees or plants which may be found
to exist, if directed to do so by the majority vote of the members, taken
at any special or regular meeting.
SOURCE: IC 15-8-1-6; (04)IN1312.1.154. -->
SECTION 154. IC 15-8-1-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 6. "Farm real
estate" means:
(1) land that is subject to would have qualified as assessment as
agricultural land under IC 6-1.1-4-13 (as in effect on January 1,
2004); and
(2) improvements on land referred to in subdivision (1).
SOURCE: IC 16-20-2-17; (04)IN1312.1.155. -->
SECTION 155. IC 16-20-2-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 17. (a) The fiscal
body of a county in which a local health department has been
authorized shall assess a levy annually on the assessed valuation of
taxable property may appropriate money for the maintenance of the
county health department.
(b) The taxes shall be paid into the county treasury and placed in a
special fund to be known as the county health fund. The fund shall be
used only for the purpose of this title and shall be drawn upon by the
proper officers of the county upon the properly authenticated vouchers
of the local health department.
(c) Each county fiscal body shall appropriate from the county health
fund money necessary to maintain the local health department.
(d) A tax levy provided for in this chapter may not be made upon
property within the corporate limits of any city maintaining the city's
own full-time health department.
SOURCE: IC 16-20-2-18; (04)IN1312.1.156. -->
SECTION 156. IC 16-20-2-18, AS AMENDED BY P.L.170-2002,
SECTION 100, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 18. (a) This section applies to
a county having a population of more than one hundred forty-eight
thousand (148,000) but less than one hundred seventy thousand
(170,000).
(b) Each year the county fiscal officer shall transfer appropriate
money to the community health clinic located in the county. an amount
equal to the revenue raised from a property tax rate of one hundred
sixty-seven thousandths of one cent ($0.00167) for each one hundred
dollars ($100) of assessed valuation of the taxable property in the
county.
(c) The transfer shall be made in four (4) equal installments before
the end of January, April, July, and October. The transfer shall be made
without the necessity of an appropriation.
SOURCE: IC 16-20-3-10; (04)IN1312.1.157. -->
SECTION 157. IC 16-20-3-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 10. (a) The fiscal
body of each county that has become a part of a multiple county health
department by ordinance of the county executive shall assess a levy
annually on the assessed valuation of taxable property appropriate
money for maintenance of the multiple county health department.
(b) The taxes shall be paid into the county treasury and placed in a
special fund to be known as the county health fund. The fund may be
used only for the purpose of this title and may be drawn upon by the
proper officers of the county upon the properly authenticated vouchers
of the multiple county health department.
(c) Each county fiscal body shall appropriate from the county health
fund money necessary to pay the fiscal body's apportioned share to
maintain a multiple county health department in the proportion that the
population of the county bears to the total population of all counties in
the multiple county health department.
SOURCE: IC 16-20-4-27; (04)IN1312.1.158. -->
SECTION 158. IC 16-20-4-27, AS AMENDED BY P.L.170-2002,
SECTION 102, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 27. (a) This section applies to
each city having a population of:
(1) more than twenty-eight thousand seven hundred (28,700) but
less than twenty-nine thousand (29,000); or
(2) more than fifty-five thousand (55,000) but less than fifty-nine
thousand (59,000).
(b) Each year the fiscal officer of each city shall transfer
appropriate money to the community health clinic located in the
county in which the city is located. an amount equal to the revenue
raised from a property tax rate of sixty-seven hundredths of one cent
($0.0067) for each one hundred dollars ($100) of assessed valuation of
the taxable property in the city.
(c) The transfer shall be made in four (4) equal installments before
the end of January, April, July, and October. The transfer shall be made
without the necessity of an appropriation.
SOURCE: IC 16-20-6-4; (04)IN1312.1.159. -->
SECTION 159. IC 16-20-6-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. (a) Real
property and easements or appurtenances may be acquired by any of
the following methods:
(1) Gift as provided in section 1 of this chapter.
(2) Purchase with money accepted for that purpose.
(3) Condemnation proceedings as prescribed by statute.
(b) Upon condemnation, all damages must be paid from the money
accepted as provided in section 1 of this chapter. All money remaining
in the account after the construction and equipment of the building may
be used for the maintenance of the building. The county or city may
levy a tax appropriate money sufficient to maintain the buildings
when constructed as provided in this chapter.
SOURCE: IC 16-22-3-13; (04)IN1312.1.160. -->
SECTION 160. IC 16-22-3-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 13. (a) The
governing board shall establish reasonable charges for patient care and
other hospital services for the residents of the county and may provide
patient care and other hospital services to nonresidents of the county
upon terms and conditions the board establishes by rule.
(b) The governing board may give appropriate discounts of charges
to patients.
(c) In establishing charges, the governing board may include a
reasonable charge for depreciation and obsolescence of property, plant,
and equipment.
(d) The board may periodically transfer all or part of the charges for
depreciation and obsolescence to a fund to be used by and at the
discretion of the board only for the purpose of building, remodeling,
repairing, replacing, or making additions to the hospital building or
buildings. However, in any year in which there is a tax levy for the
general operation and maintenance of the hospital, the board shall not
make a transfer to the fund. In an emergency, the board may borrow
from the fund for the operating fund of the hospital and shall reimburse
the fund within two (2) years.
(e) The authority granted to establish the fund does not limit the
power and authority of the board, the county executive, the county
fiscal body, or other units of government to finance hospital buildings
by other methods.
SOURCE: IC 16-22-3-26; (04)IN1312.1.161. -->
SECTION 161. IC 16-22-3-26 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 26. (a) The
governing board may obtain loans for hospital expenses in amounts and
on terms and conditions agreeable to the board and may secure the
loans by pledging accounts receivable or other security in hospital
funds. If the board enters into a loan agreement for the borrowing of
funds from the state authority, the board may pledge as security for
payment under the agreement the funds the board receives from a tax
levy under section 27 of this chapter. money available to the board.
(b) The board may sell or factor accounts receivable on terms and
conditions agreeable to the board.
(c) A county, city, or health and hospital corporation owning and
maintaining or leasing at least one (1) hospital or related facilities, a
county hospital association under IC 16-22-6, and a building authority
under IC 36-9-13 may enter into an agreement with the United States
or a department, an agency, or an instrumentality of the United States
with respect to loans or guaranties for hospital or related purposes and
may borrow money on the terms and conditions of the agreement.
(d) The loans may be:
(1) evidenced by bonds, notes, contractual agreements, or other
evidences of indebtedness;
(2) secured in whole or in part by:
(A) pledge of the full faith and credit as a general obligation
of the borrower (but not payable from property taxes);
(B) the income and revenues of the hospital or related
facilities;
(C) rental from the lease of hospital facilities; or
(D) any combination of clauses (A) through (C); and
(3) additionally secured by a mortgage or deed of trust of all or
part of the real or personal property, or both, of the hospital.
(e) Bonds, notes, or other evidences of indebtedness issued in
connection with a federal loan under this section may be sold and
delivered at private sale without the necessity of public sale or public
offering.
SOURCE: IC 16-22-3-27; (04)IN1312.1.162. -->
SECTION 162. IC 16-22-3-27 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 27.
(a) The
governing board may request support from the county,
either by
appropriation from the county general fund,
or by a separate tax levy,
by filing with the county executive on or before August 1 a written
budget of the amount estimated to be required to maintain, operate, or
improve the hospital for the ensuing year.
(b) If the county provides a direct financial subsidy to a hospital
from a tax levy at the time the board exercises the powers under section
1(b) of this chapter, the board may not provide the funds from a tax
levy to an entity created under section 1(b) of this chapter for more
than three (3) years. After three (3) years, all funds, with interest, must
be repaid within ten (10) years.
(c) If the board enters into a lease or sublease contract or a loan
agreement with the state authority, the board may request the county to
adopt a separate tax levy to support the board's obligation to make
payments under that contract or agreement.
SOURCE: IC 16-22-4-1; (04)IN1312.1.163. -->
SECTION 163. IC 16-22-4-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1. The county
officers may establish a cumulative building fund under IC 6-1.1-41 or
a sinking fund in compliance with the procedures for establishing a
cumulative fund under IC 6-1.1-41 for the erection of new hospital
buildings, the repairing, remodeling, and enlarging of old hospital
buildings, and the equipment of new, enlarged, and old hospitals
owned and operated by the county, a voluntary nonprofit association,
or a nonprofit corporation.
SOURCE: IC 16-22-4-4; (04)IN1312.1.164. -->
SECTION 164. IC 16-22-4-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. The county
officers may in compliance with IC 6-1.1-41, levy a tax on all taxable
property within the county to provide appropriate money for a fund
established under this chapter.
SOURCE: IC 16-22-6-20; (04)IN1312.1.165. -->
SECTION 165. IC 16-22-6-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 20. (a) If the
execution of the original or a modified lease is authorized, notice of the
signing shall be published on behalf of the county one (1) time in a
newspaper of general circulation and published in the county. Except
as provided in subsection (b), at least ten (10) taxpayers in the county
whose tax rate will be affected by the proposed lease may file a petition
with the county auditor not more than thirty (30) days after publication
of notice of the execution of the lease. The petition must set forth the
objections to the lease and facts showing that the execution of the lease
is unnecessary or unwise or that the lease rental is not fair and
reasonable.
(b) The authority for taxpayers to object to a proposed lease
described in subsection (a) does not apply if the authority complies
with the procedures for the issuance of bonds and other evidences of
indebtedness described in IC 6-1.1-20-3.1, and IC 6-1.1-20-3.2,
IC 21-10, or IC 36-1.3 (as appropriate).
SOURCE: IC 16-22-7-3; (04)IN1312.1.166. -->
SECTION 166. IC 16-22-7-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 3. As used in this
chapter, "net operating revenue" means the revenues of the hospital,
exclusive of any property tax levy taxes imposed under IC 6-3.5-9
remaining after provision for reasonable expenses of operation, repair,
replacements, and maintenance of the hospital.
SOURCE: IC 16-22-8-34; (04)IN1312.1.167. -->
SECTION 167. IC 16-22-8-34 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 34. (a) The board
may do all acts necessary or reasonably incident to carrying out the
purposes of this chapter, including the following:
(1) As a municipal corporation, in the board's corporate name, to
sue and be sued in any court with jurisdiction.
(2) To serve as the exclusive local board of health within the
county with the powers and duties conferred by law upon local
boards of health or similar boards. The board supersedes all other
local boards of health within the county. However, the ordinances
and codes of the prior health boards remain in effect until an
ordinance upon the same subject is enacted by the board.
(3) To enact ordinances that are consistent with Indiana law and
with the rules of the department, for the following purposes:
(A) To protect property owned or managed by the corporation.
(B) To determine, prevent, and abate public health nuisances.
(C) To establish quarantine regulations, impose restrictions on
persons having infectious or contagious diseases and contacts
of the persons, and regulate the disinfection of premises.
(D) To license, regulate, and establish minimum sanitary
standards for the operation of a business handling, producing,
processing, preparing, manufacturing, packing, storing,
selling, distributing, or transporting articles used for food,
drink, confectionery, or condiment in the interest of the public
health.
(E) To control rodents, termites, insects, and pests.
(F) To require persons to connect to available sewer systems
and to regulate the disposal of domestic or sanitary sewage by
private methods. However, the board has no jurisdiction over
publicly owned or financed sewer systems or sanitation and
disposal plants.
(G) To control rabies.
(H) For the sanitary regulation of water supplies for domestic
use.
(I) To protect, promote, or improve public health and control
disease.
(4) To have exclusive control, operation, and management of
hospitals transferred to the corporation.
(5) The board shall furnish health and nursing services to
elementary and secondary schools within the county.
(6) The board shall furnish medical care to the indigent within the
county unless medical care is furnished to the indigent by the
division of family and children.
(7) To determine the public health policies and programs to be
carried out and administered by the corporation.
(8) To adopt an annual budget and
levy impose taxes
in
accordance with this chapter. under IC 6-3.5-9.
(9) To incur indebtedness in the name of the corporation in
accordance with this chapter.
(10) To organize the personnel and functions of the corporation
into divisions and subdivisions to carry out the board's powers and
duties and to consolidate, divide, or abolish the divisions and
subdivisions.
(11) To acquire and dispose of property.
(12) To receive gifts, donations, bequests, and public trusts and
to agree to conditions and terms accompanying these items and
bind the corporation to carry out the conditions and terms.
(13) To receive and administer federal or state aid.
(14) To erect buildings or structures or improvements to existing
buildings or structures needed to carry out this chapter.
(15) To determine matters of policy regarding internal
organization and operating procedures not specifically provided
for otherwise.
(16) To do the following:
(A) Adopt a schedule of reasonable charges for nonresidents
of the county for treatments, medicines, and hospital services.
(B) Collect the charges from the patient or from the
governmental unit where the patient resided at the time of the
service.
(C) Require security for the payment of the charges.
(17) To adopt a schedule of and to collect reasonable charges for
patients able to pay in full or in part.
(18) To enforce the health laws, ordinances, and rules of the
corporation, the state, and the state department of health.
(19) To purchase supplies, materials, and equipment for the
corporation. The purchase of drugs, medical, dental, laboratory,
and surgical supplies and instruments, and food shall be in
accordance with proceedings adopted by the board and is not
subject to IC 36-1-9. The board must approve a purchase of more
than five hundred dollars ($500). All other purchases shall be
made in accordance with IC 36-1-9.
(20) To employ personnel to carry out the duties, functions, and
powers of the corporation. The professional and semiprofessional
personnel in the division of hospitals shall be employed only on
the recommendation of the medical director of hospitals. The
superintendent of a hospital (other than the superintendent of a
county home) must possess the qualifications required for a
director of the division of public hospitals. The trained and skilled
personnel in the division of health shall be employed only on the
recommendation of the director of public health.
(21) To employ an attorney admitted to practice law in Indiana.
(22) To acquire, erect, equip, and operate the hospital in
accordance with this chapter.
(23) To sell surplus or unneeded property in accordance with the
procedure prescribed by the board. However, if the board disposes
of real property by acceptance of bids, a bid submitted by a trust
(as defined in IC 30-4-1-1(a)) must identify the following:
(A) Each beneficiary of the trust.
(B) Each settlor empowered to revoke or modify the trust.
(24) To adopt rules to carry out the board's powers and duties and
to govern the duties of the board's officers, employees, and
personnel and the internal management of the affairs of the
corporation.
(25) To fix the compensation of the officers and employees of the
corporation except where a different provision is made by this
chapter.
(26) To carry out the purposes and object of the corporation.
(27) To have the powers and duties relating to county homes
vested in the county executive and to appoint a superintendent of
the county home who must have executive ability and be qualified
by education and experience to manage the institution.
(28) To obtain loans for hospital expenses in amounts and upon
terms agreeable to the board. The board may secure the loans by
pledging accounts receivable or other security in hospital funds.
(b) The board shall exercise the board's powers and duties in a
manner consistent with Indiana law and with the rules of the state
department of health.
SOURCE: IC 16-22-8-41; (04)IN1312.1.168. -->
SECTION 168. IC 16-22-8-41 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 41. (a) The board
may provide a cumulative building fund under IC 6-1.1-41 to erect
hospital buildings, additions, or other buildings, remodel buildings, or
acquire equipment needed to carry out this chapter. The cumulative
building fund may be funded by a property tax levy under subsection
(b), a transfer into the fund of other revenues of the hospital, or a
combination of these two (2) methods.
(b) The board may levy a tax in compliance with IC 6-1.1-41 on all
taxable property within the county where the corporation is established.
However, the levy may not exceed six and sixty-seven hundredths cents
($0.0667) on each one hundred dollars ($100) of taxable property.
(c) (b) All money in the cumulative building fund may be invested
or reinvested in the following:
(1) Securities backed by the full faith and credit of the United
States Treasury, including direct obligations of the United States
government and obligations of a federal agency or a federal
instrumentality that are fully guaranteed by the United States
government.
(2) Participation in loans under the conditions and in the manner
set forth in IC 5-13-10.5-12.
(d) (c) The treasurer of the corporation may lend any securities in
the cumulative building fund under the conditions and in the manner
set forth in IC 5-13-10.5-12. Money collected and not invested in
government obligations shall be deposited and withdrawn in the
manner authorized by law for the deposit, withdrawal, and safekeeping
of the general funds of municipalities.
SOURCE: IC 16-22-8-43; (04)IN1312.1.169. -->
SECTION 169. IC 16-22-8-43, AS AMENDED BY P.L.1-2003,
SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 43. (a) The board may issue general
obligation bonds of the corporation to procure funds to pay the cost of
acquiring real property or constructing, enlarging, improving,
remodeling, repairing, or equipping buildings and other structures for
use as or in connection with hospitals, clinics, health centers,
dispensaries, or for administrative purposes. The issuance of the bonds
shall be authorized by ordinance of the board providing for the amount,
terms, and tenor of the bonds, for the time and character of notice, and
the mode of making the sale. The bonds shall be payable not more than
forty (40) years after the date of issuance and shall be executed in the
name of the corporation by the chairman of the board and attested by
the executive director, who shall affix to each of the bonds the official
seal of the corporation. The interest coupons attached to the bonds may
be executed by facsimile signature of the chairman of the board.
(b) The executive director shall manage and supervise the
preparation, advertisement, and sale of bonds, subject to the provisions
of the authorizing ordinance. Before the sale of the bonds, the
executive director shall publish notice of the sale in accordance with
IC 5-3-1, setting out the time and place where bids will be received, the
amount and maturity dates of the issue, the maximum interest rate, and
the terms and conditions of sale and delivery of the bonds. The bonds
shall be sold to the highest and best bidder. After the bonds have been
sold and executed, the executive director shall deliver the bonds to the
treasurer of the corporation and take the treasurer's receipt, and shall
certify to the treasurer the amount that the purchaser is to pay, together
with the name and address of the purchaser. On payment of the
purchase price, the treasurer shall deliver the bonds to the purchaser,
and the treasurer and executive director shall report the actions to the
board.
(c) IC 21-10 or IC 36-1.3 (as appropriate), IC 5-1, and
IC 6-1.1-20 apply to the following proceedings:
(1) Notice and filing of the petition requesting the issuance of the
bonds.
(2) Notice of determination to issue bonds.
(3) Notice of hearing on the appropriation of the proceeds of the
bonds and the right of taxpayers to appeal and be heard.
(4) Approval by the department of local government finance.
(5) The right to remonstrate.
(6) Sale of bonds at public sale for not less than the par value.
(d) The bonds are the direct general obligations of the corporation
and are payable out of unlimited ad valorem taxes levied and collected
on all the taxable property within the county of the corporation. All
officials and bodies having to do with the levying of taxes for the
corporation shall see that sufficient levies are made to meet the
principal and interest on the bonds at the time fixed for payment.
money available to the corporation.
(e) The bonds are exempt from taxation for all purposes but the
interest is subject to the adjusted gross income tax.
SOURCE: IC 16-22-8-51; (04)IN1312.1.170. -->
SECTION 170. IC 16-22-8-51, AS AMENDED BY P.L.90-2002,
SECTION 396, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 51. The tax levy approved by
the department of local government finance shall be assessed and
collected by the county treasurer of the county within which the
corporation is located as other taxes are levied and collected. The
county treasurer shall remit all taxes appropriated to the corporation
to the treasurer of the corporation.
SOURCE: IC 16-22-8-55; (04)IN1312.1.171. -->
SECTION 171. IC 16-22-8-55, AS AMENDED BY P.L.90-2002,
SECTION 397, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 55. (a) The corporation may
borrow money on promissory notes issued in the corporation's name,
as a municipal corporation, from recognized lending institutions, and
pledge as security unlimited ad valorem taxes levied by the corporation
and collected on all taxable property within the jurisdiction of the
corporation. It is the duty of all officials and bodies with control or
discretion over the levying of taxes for the corporation to see that
sufficient levies are made to meet the principal and interest on
promissory notes. The promissory notes issued under this section shall
be treated for taxation purposes the same as bonds issued by a
municipal corporation in accordance with IC 6-8-5-1. money available
to it.
(b) Funds obtained by the method provided in this section shall be
limited in use to the payment of lease rental for medical, surgical, and
related equipment used by the corporation when the board determines
that leasing the equipment is more practical and economical than
purchasing. The decision to lease rather than purchase is within the
sole discretion of the board.
(c) The length, terms, and conditions of promissory notes issued
under this section are subject to negotiation between the board or the
board's representative and the lending institutions bidding. Before
entering into negotiations for the loan, the board of trustees shall
publish a notice one (1) time in a newspaper of general circulation in
the health and hospital corporation naming a date not less than seven
(7) days after the publication of notice on which the board will receive
and consider proposals from lending institutions for the making of the
loan.
(d) After determination of the board to borrow and to issue
promissory notes, and after a determination of the best proposal
submitted by lending institutions, the board shall give notice of the
board's determination to borrow and to issue promissory notes in the
manner provided by IC 6-1.1-20, IC 21-10, or IC 36-1.3 (as
appropriate). The taxpayers have the right to appeal the determination
to the department of local government finance in the manner and
within the time provided in IC 6-1.1-20, IC 21-10, or IC 36-1.3 (as
appropriate).
SOURCE: IC 16-22-12-3; (04)IN1312.1.172. -->
SECTION 172. IC 16-22-12-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 3. The county
fiscal body may annually make an appropriation from the county
treasury to pay a part of the cost of the operation, maintenance, repair,
alteration, enlargement, furnishing, and equipment of the hospital. and
for that purpose may annually levy a special tax, in an amount to be
fixed by the county fiscal body, on all taxable property located in the
county.
SOURCE: IC 16-23-1-2; (04)IN1312.1.173. -->
SECTION 173. IC 16-23-1-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. The city and
county officers shall appropriate sufficient money annually and levy a
tax annually on the taxable property in the county to meet a deficiency
that exists, or is reasonably anticipated by the board of directors of the
hospital, to maintain, equip, and operate the city hospital for the
ensuing calendar year if the hospital meets the following conditions:
(1) Is established, maintained, and operated inside or within two
(2) miles of and in the same county as a city subject to this
chapter.
(2) Is established at a time when there is no other city, county, or
public hospital maintained and operated in that county.
(3) Is open to all residents of the county without discrimination in
the rates, facilities, and services.
SOURCE: IC 16-23-1-27; (04)IN1312.1.174. -->
SECTION 174. IC 16-23-1-27 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 27. If the estimate
and budget show no anticipated deficiency for the next calendar year,
the city and the county may not levy any appropriate tax on the
property of the city or county revenue for the ensuing year.
SOURCE: IC 16-23-1-28; (04)IN1312.1.175. -->
SECTION 175. IC 16-23-1-28 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 28. (a) If the
budget and estimate filed in the auditor's office of the county in any
year shows an anticipated deficiency, the amount of the deficiency
shall be set out in the copy of the budget and estimate filed, and the
board shall request that the fiscal body of the county appropriate
sufficient funds.
and levy a sufficient tax rate on the taxable property
of the county to meet the deficiency. The county auditor shall, upon the
basis of the request, compute the amount of money necessary to be
appropriated and the amount of tax levy necessary to be made on the
taxable property of the county to meet the estimated deficiency in the
anticipated hospital funds for the ensuing calendar year. The auditor
shall place the tax levy before the county fiscal body at the fiscal body's
annual budget meeting in September of the same year the request is
filed.
(b) The county fiscal body shall place the amount of the anticipated
deficiency in the county budget for the next calendar year.
and shall
levy a sufficient tax on all taxable property in the county to meet the
anticipated deficiency. However, the tax rate fixed by the county fiscal
body in any one (1) year may not exceed three and thirty-three
hundredths cents ($0.0333) on each one hundred dollars ($100) of
taxable property in the county. The levy is known as the hospital aid
tax.
SOURCE: IC 16-23-1-29; (04)IN1312.1.176. -->
SECTION 176. IC 16-23-1-29 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 29. (a) If the
county fiscal body is not authorized to appropriate sufficient funds
under this chapter to meet an anticipated deficiency in any one (1) year
reported and filed in the offices of the county auditor and city
clerk-treasurer, the city fiscal body may appropriate a sufficient amount
of funds for the next calendar year to meet the balance of the
anticipated deficiency. and levy a special hospital aid tax on all taxable
property in the city for this purpose.
(b) The rate fixed by the city fiscal body for a hospital aid tax in any
one (1) year may not exceed two and thirty-three hundredths cents
($0.0233) on each one hundred dollars ($100) of taxable property. The
tax is in addition to any tax levied by the city for the retirement of
bonds or other evidences of indebtedness and payment of interest
charges for the alteration, repair, or improvement of the hospital,
including the construction of additions and extensions to the hospital.
SOURCE: IC 16-23-1-31; (04)IN1312.1.177. -->
SECTION 177. IC 16-23-1-31, AS AMENDED BY P.L.90-2002,
SECTION 398, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 31. (a)
If the annual budget
and appropriations, or any additional appropriations or transfers of
money, made or proposed by the board of directors, excluding any
cumulative building money:
(1) is not based upon or derived in part from a tax levy on
property in the county or city; and
(2) involves only the funds of the hospital derived wholly from
other sources than property taxes;
The board only needs to adopt a resolution for the approval of the
budget appropriations, additional appropriations, or transfers and file
a true copy of the budget appropriations, additional appropriations, or
transfers and the resolution in the offices of the county auditor and city
clerk-treasurer within seven (7) days after board action for the
information of the public.
(b) If the funds are not derived from taxation, the city fiscal body
may review, consider, and file objections and take an appeal to the
department of local government finance upon the following:
(1) An annual budget and any appropriations in the budget and
request the reduction or elimination of any item.
(2) Additional appropriations or transfers of funds, or any part of
additional appropriations or transfers of funds, within ten (10)
days after the certificate has been filed in the clerk-treasurer's
office.
The ruling and action of the department of local government finance is
final and conclusive.
(c) The annual budget and appropriations may be revised by the
board of directors by increasing or decreasing items in the budget
based on revenues derived from sources other than property taxes and
by transfer from any items of the budget and appropriations to other
items of the budget, without giving legal notice or any public hearing.
However, a copy of each resolution changing the budget or any
appropriations or transfers of funds shall be filed with the city
clerk-treasurer and county auditor within seven (7) days after the
passage of each resolution. The resolution is subject to appeal by the
city fiscal body to the department of local government finance for final
action in the manner and within the period provided in this section.
(d) The governing board shall annually file a condensed annual
report of receipts and expenditures of all hospital funds. Expenses or
income items may be summarized in a fair and an accurate manner for
the information of all taxpayers and citizens. A copy of the annual
report covering the preceding calendar year shall be filed in the city
clerk-treasurer's office and in the county auditor's office on or before
the first Monday in March. Detailed information on the items must be
available for inspection by the public at the hospital administrator's
office.
SOURCE: IC 16-23-1-32; (04)IN1312.1.178. -->
SECTION 178. IC 16-23-1-32 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 32. (a) The county
treasurer shall collect all hospital aid taxes levied by the county fiscal
body or city fiscal body as other taxes on property are collected, and the
county auditor shall pay over the amount to the clerk-treasurer of the
city. The amount shall be placed in the hospital fund of the city, subject
to the order of the governing board, and is available for the payment of
maintenance, equipment, supplies, and operating expenses of the city
hospital and for any other purpose for which the current budget of the
hospital provides.
(b) The clerk-treasurer shall keep the hospital aid money levied
appropriated by the county fiscal body or the city fiscal body in
separate items on the appropriation records of the city. The amount
received from the hospital aid levy appropriation of the county shall
be considered appropriated for hospital purposes, without further
appropriation by the city fiscal body.
SOURCE: IC 16-23-1-35; (04)IN1312.1.179. -->
SECTION 179. IC 16-23-1-35 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 35. (a) If the city
legislative body of a city having a city hospital determines that the city
hospital's buildings and facilities are or will soon become insufficient
to serve the needs of the residents of the city and of the county in which
the city is located, the city legislative body may, by ordinance, do any
of the following:
(1) Provide for the construction of any of the following:
(A) Buildings at the same or a different location to replace or
supplement the hospital building.
(B) An extension and addition to any hospital building.
(2) Provide for the alteration, improvement, remodeling, or repair
of any hospital building and grounds.
(3) Provide for the acquisition by condemnation, purchase, or
donation of additional real property.
(b) The city fiscal body may, by ordinance, appropriate or borrow
the necessary money and issue bonds of the city. The city fiscal body
shall annually levy a sufficient tax on all taxable property in the city to
pay the principal of the bonds that will mature in the ensuing calendar
year and the interest payments due in the ensuing calendar year on all
outstanding bonds of that issue. The appropriations and bonds may
include the cost of architects' services and any preliminary proceedings,
legal services, and other incidental expense in connection with the
project.
SOURCE: IC 16-23-1-40; (04)IN1312.1.180. -->
SECTION 180. IC 16-23-1-40, AS AMENDED BY P.L.90-2002,
SECTION 400, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 40. (a) The governing board
may request a cumulative hospital building fund and
a tax rate upon all
taxable property in the county in which the hospital is located
appropriate money to finance the fund.
If a resolution is approved by
majority vote of all members at a regular or special board meeting, the
resolution shall be certified to the county auditor, who shall submit the
resolution to the county executive for preliminary approval and
recommendation. Upon the approval of the county executive, the
county auditor shall publish notice of a public hearing before the
county council on the establishment of a cumulative hospital building
fund and tax rate in each year.
(b) The cumulative building tax rate begins in any calendar year
when all proceedings to establish the tax rate have been completed
before August 2 in that year. The rate is levied on each one hundred
dollars ($100) of taxable property for that year, payable in the next
year, and continues each year for a term not exceeding twelve (12)
years. The resolution of the board must specify the following:
(1) The number of years.
(2) The effective date when the tax levy begins.
(3) The amount of rate on each one hundred dollars ($100) of
taxable property.
(4) Any other pertinent facts considered advisable by the board.
(c) Except as provided in subsections (f) through (h), the rate on
each one hundred dollars ($100) may be reduced but not increased by
the department of local government finance in approving a cumulative
building tax rate. The rate as finally fixed by the department of local
government finance is final. However, the county fiscal body, by
three-fourths (3/4) affirmative vote of the county fiscal body's
members, may reduce the rate in any given year or years to meet an
emergency existing in the county, but the temporary reduction affects
the rate only in the year when the action is taken. The rate is
automatically restored to the rate's original amount in each succeeding
year of the established period except in any other year when another
emergency reduction is made. The rate is subject to review each year
by the county fiscal body, but the county tax adjustment board and
department of local government finance may not reduce the rate below
the original rate established and approved by vote of the county fiscal
body unless the county fiscal body reduces the rate.
(d) The county fiscal body, city fiscal body, county tax adjustment
board, or department of local government finance does not have power
or jurisdiction over the annual budget and appropriations, additional
appropriations, or transfer of money unless the action involves the
expenditure or raising of money derived from property taxes. If the
cumulative building fund is the only hospital fund raised by taxation,
section 31 of this chapter controls.
(e) (b) The cumulative building fund raised may be properly and
safely invested or reinvested by the board to produce an income until
there is an immediate need for the fund's use. The fund and any income
derived from investment or reinvestment of the fund may be used as
follows:
(1) To purchase real property and grounds for hospital purposes.
(2) To remodel or make major repairs on any hospital building.
(3) To erect and construct hospital buildings or additions or
extensions to the buildings.
(4) For any other major capital improvements, but not for current
operating expenses or to meet a deficiency in operating funds.
(f) Not later than August 1 of any year, ten (10) or more taxpayers
in the county may file with the county auditor of the county in which
the hospital is located a petition for reduction or rescission of the
cumulative building tax rate. The petition must set forth the taxpayers'
objections to the tax rate. The petition shall be certified to the
department of local government finance.
(g) Upon receipt of a petition under subsection (f), the department
of local government finance shall, within a reasonable time, fix a date
for a hearing on the petition. The hearing must be held in the county in
which the hospital is located. Notice of the hearing shall be given to the
county fiscal body and to the first ten (10) taxpayers whose names
appear on the petition. The notice must be in the form of a letter signed
by the secretary or any member of the department of local government
finance, sent by mail with full prepaid postage to the county fiscal body
and to the taxpayers at their usual places of residence at least five (5)
days before the date fixed for the hearing.
(h) After the hearing under subsection (g), the department of local
government finance shall approve, disapprove, or modify the request
for reduction or rescission of the tax rate and shall certify that decision
to the county auditor of the county in which the hospital is located.
SOURCE: IC 16-23-3-6; (04)IN1312.1.181. -->
SECTION 181. IC 16-23-3-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 6. The city fiscal
body may annually levy and collect a tax of not more than two and
sixty-seven hundredths cents ($0.0267) on each one hundred dollars
($100) of the taxable property in the city appropriate money to
provide money to aid in the maintenance of the hospital as provided in
this chapter.
SOURCE: IC 16-23-4-2; (04)IN1312.1.182. -->
SECTION 182. IC 16-23-4-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. The city fiscal
body may levy a special tax appropriate money for the maintenance
of the hospital. of not less than sixty-seven hundredths of one cent
($0.0067) and not more than one and sixty-seven hundredths cents
($0.0167) on each one hundred dollars ($100) of taxable property, to
be levied and collected the same as other city taxes are levied and
collected.
SOURCE: IC 16-23-5-6; (04)IN1312.1.183. -->
SECTION 183. IC 16-23-5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 6. A city may
provide for the support and maintenance of a hospital subject to this
chapter as follows:
(1) Appropriate money to the hospital.
(2) Levy and collect a special tax not exceeding two and
thirty-three hundredths cents ($0.0233) on each one hundred
dollars ($100) valuation of the taxable property of the city.
(3) (2) Give other aid and support to the hospital that the city
council considers proper.
SOURCE: IC 16-23-7-2; (04)IN1312.1.184. -->
SECTION 184. IC 16-23-7-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. A city may do
the following:
(1) Appropriate money to the hospital for support and
maintenance.
(2) Aid in the support of the hospital by the levy and collection of
a special tax, not exceeding one cent ($0.01) on each one hundred
dollars ($100) valuation of taxable property of the city.
(3) (2) Give other aid and support in the maintenance of the
hospital that the city fiscal body considers proper.
SOURCE: IC 16-23-8-2; (04)IN1312.1.185. -->
SECTION 185. IC 16-23-8-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. A city may do
the following:
(1) Appropriate money to the hospital for support and
maintenance.
(2) Aid in the support of the hospital by the levy and collection of
a special tax, not exceeding two and thirty-three hundredths cents
($0.0233) on each one hundred dollars ($100) valuation of the
taxable property of the city.
(3) (2) Give other aid and support in the maintenance of the
hospital in the manner that the city fiscal body considers proper.
SOURCE: IC 16-23-9-2; (04)IN1312.1.186. -->
SECTION 186. IC 16-23-9-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. The township
board may, at the request of the township trustee, levy annually and
cause to be collected as other taxes are collected a tax upon all of the
taxable property within the township. The tax may not exceed six and
sixty-seven hundredths cents ($0.0667) on each one hundred dollars
($100) of assessed valuation. The tax is appropriate money for the use
of the hospital in defraying the expenses of the hospital's maintenance
and support, for providing necessary additions, and for the payment of
mortgage indebtedness.
SOURCE: IC 16-23-9-4; (04)IN1312.1.187. -->
SECTION 187. IC 16-23-9-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. (a) This section
applies if the township trustee and the township board of the township
determine the following:
(1) That the hospital is indebted in an amount not exceeding five
thousand dollars ($5,000), the payment of which is secured by a
mortgage encumbering the buildings and grounds of the hospital.
(2) That an addition to the hospital structure or additional
building or buildings, or equipment is required to enable the
hospital to efficiently carry on the hospital's activities under the
hospital's articles of incorporation.
(b) The township board may authorize the trustee, by special order
entered and signed upon the township board's records, to borrow an
amount on behalf of the township sufficient to pay the mortgage
indebtedness, or to construct and equip an addition to a building or for
an additional building. The township board may authorize the trustee
of the township to issue bonds of the township to pay the debt created.
The bonds:
(1) may run for a period not exceeding ten (10) years;
(2) may bear interest at any rate; and
(3) shall be sold by one (1) of the trustees, with the consent of the
township board, for not less than par value.
(c) The township board shall annually levy sufficient taxes to pay at
least one-tenth (1/10) of the township bonds, including interest, and the
township trustee shall apply the tax levy collected each year to the
retirement of the bonds and the payment of the interest on the bonds.
The bonds issued under this section may not exceed an amount equal
to one percent (1%) of the adjusted value of all the taxable property in
the township, including that in a town, as determined under IC 36-1-15.
(d) This debt may not be created except by the township board in the
manner specified in this section. A payment of an unauthorized debt by
a trustee from public funds is recoverable upon the bond of the trustee.
(e) The township trustee shall pay the proceeds from the borrowing
and the sale of bonds into the treasury of the hospital. The hospital may
use the money only to pay the mortgage indebtedness for which bonds
had been sold or for construction and equipment of buildings or
additions to buildings.
SOURCE: IC 16-24-1-2; (04)IN1312.1.188. -->
SECTION 188. IC 16-24-1-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. The county
executive of a county may establish a county hospital for the care and
treatment of persons with tuberculosis. When the county executive
votes to establish a hospital, the county executive may do the
following:
(1) Purchase or lease real property or acquire the real property
and easements by condemnation proceedings.
(2) Erect buildings, make improvements, repairs, and alterations,
subject to approval by the state department.
(3) With the approval of the county fiscal body, and based upon
estimates of the governing board,
assess, levy, and collect money
necessary for suitable lands, buildings, improvements,
maintenance, and other necessary expenditures for the hospital.
impose a tax under IC 6-3.5-9.
(4) Borrow money to erect, furnish, and equip the hospital and to
purchase a site on the credit of the county and issue county
obligations as the county executive may do for other county
purposes.
(5) Accept and hold in trust for the county, and to comply with the
terms of, any of the following:
(A) A grant or devise of land.
(B) A gift or bequest of money or other personal property.
(C) A donation for the benefit of the hospital.
SOURCE: IC 16-35-4-3; (04)IN1312.1.189. -->
SECTION 189. IC 16-35-4-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 3. The children
with special health care needs state fund consists of the following:
(1) Money transferred to the fund from the children with special
health care needs county fund under IC 16-35-3 (repealed).
(2) Contributions to the fund from individuals, corporations,
foundations, or other persons for the purpose of providing money
to assist children with special health care needs.
(3) Appropriations made specifically to the fund by the general
assembly.
SOURCE: IC 16-41-15-5; (04)IN1312.1.190. -->
SECTION 190. IC 16-41-15-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 5. The appropriate
governing body may levy annually a tax of not more than one cent
($0.01) on each one hundred dollars ($100) of taxable property
appropriate money for the control and prevention of venereal disease.
The tax is in addition to other taxes of the local governing body. The
tax shall be collected in the same manner as other taxes and shall be
credited to the local board of health venereal disease prevention and
control fund.
SOURCE: IC 16-41-33-4; (04)IN1312.1.191. -->
SECTION 191. IC 16-41-33-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. The county
fiscal body or the governing board of a health and hospital corporation
may, on the fiscal body's or board of trustees' own initiative or after a
petition signed by five percent (5%) of the registered voters within the
jurisdiction of the health department, make an annual appropriation
specifically for the purpose of vector control to be used by the health
department solely for that purpose. and levy a tax of not more than
sixty-seven hundredths of one cent ($0.0067) on each one hundred
dollars ($100) of assessed value of taxable property in the county.
SOURCE: IC 20-1-1.3-8; (04)IN1312.1.192. -->
SECTION 192. IC 20-1-1.3-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 8. (a) A public school
that receives a monetary award under this chapter may expend that
award for any educational purpose for that school, except:
(1) athletics;
(2) salaries for school personnel; or
(3) salary bonuses for school personnel.
(b) A monetary award may not be used to determine:
(1) the maximum permissible general fund ad valorem property
tax levy under IC 6-1.1-19-1.5; or
(2) the tuition support under IC 21-3-1.6;
of the school corporation of which the school receiving the monetary
award is a part. This subsection expires January 1, 2005.
SOURCE: IC 20-1-6-1; (04)IN1312.1.193. -->
SECTION 193. IC 20-1-6-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. As used in this
chapter, the following terms have the following meanings:
(1) "Child with a disability" means any child who is at least three
(3) years of age but less than twenty-two (22) years of age and
who because of physical or mental disability is incapable of being
educated properly and efficiently through normal classroom
instruction, but who with the advantage of a special educational
program may be expected to benefit from instruction in
surroundings designed to further the educational, social, or
economic status of the child. Public schools may operate special
education programs for hearing impaired children as young as six
(6) months of age on an experimental basis upon the approval of
the superintendent of public instruction and the Indiana state
board of education.
(2) "Division" means the division of special education within the
department of education.
(3) "Director" means the director of the division of special
education.
(4) "School corporation"
means any corporation authorized by law
to establish public schools and levy taxes for the maintenance of
the schools. has the meaning set forth in IC 20-5-1-3.
(5) "Individualized education program" means a written statement
developed by a group that includes:
(A) a representative of the school corporation or public agency
responsible for educating the child;
(B) the child's teacher;
(C) the child's parent, guardian, or custodian;
(D) if appropriate, the child; and
(E) if the provision of services for a seriously emotionally
disabled child is considered, a mental health professional
provided by the community mental health center (as described
under IC 12-29) or a managed care provider (as defined in
IC 12-7-2-127(b)) and serving the community in which the
child resides;
and that describes the special education to be provided to the
child.
(6) "Preschool child with a disability" refers to a disabled child
who is at least three (3) years of age by September 1 of the
1989-90 school year, August 1 of the 1990-91 school year, July
1 of the 1991-92 school year, or June 1 of the 1992-93 school year
and every subsequent school year.
(7) "Special education" means instruction specially designed to
meet the unique needs of a child with a disability. It includes
transportation, developmental, corrective, and other support
services and training only when required to assist a child with a
disability to benefit from the instruction itself.
(8) "School year" has the meaning set forth in IC 20-10.1-2-1.
SOURCE: IC 20-1-6-20; (04)IN1312.1.194. -->
SECTION 194. IC 20-1-6-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 20. (a) As used in this
section, the following terms shall have the following meanings:
(1) "Special education cooperative" means a department, school,
or school corporation established, maintained, and supervised for
the education of children with disabilities in accordance with this
section.
(2) "Participating school corporation" means any local public
school corporation established under the laws of the state of
Indiana which cooperates with other such corporation or
corporations in a special education cooperative.
(3) "Governing body" of a participating school corporation means
the board or commission charged by law with the responsibility
of administering the affairs of such school corporation, but in the
case of a school township shall mean its trustee and township
board.
(4) "Board of managers" means the board or commission charged
with the responsibility of administering the affairs of a special
education cooperative.
(5) "Agreement" means an identical resolution adopted by the
governing body of each participating school corporation, or an
agreement approved by each such governing body, providing for
a special education cooperative.
(6) "Assessed valuation" of a participating school corporation for
any school year shall mean the net assessed valuation of such
school corporation for the immediately preceding March 1,
adjusted in the same manner as any adjustment is made in
determining the amount of state distribution for school support.
(7) "Percentage share" of a participating school corporation is the
percent which its assessed valuation bears to the total assessed
valuation of all the participating schools joining in an agreement.
(b) Two (2) or more participating school corporations may form a
special education cooperative in accordance with the provisions of
either subsection (g) or (h), but subject to the limitations of this
subsection, by adopting an agreement which shall contain the following
provisions:
(1) A plan for the organization, administration, and support for
such special education cooperative, including the establishment
of a board of managers.
(2) The commencement date of the establishment of such
cooperative, which shall be contemporaneous with the beginning
of a school year.
(3) The extension of such special education cooperative for a
minimum of five (5) school years, a provision that such
cooperative will extend from school year to school year thereafter
unless canceled by action of the governing bodies of a majority of
the participating school corporations, taken at least one (1) year
prior to the termination of the agreement.
During the term of such agreement, it may be modified by unanimous
consent of all the participating school corporations. Such agreement
may include an agreement to acquire sites, buildings, and equipment
therefor by purchase, by lease from any of the participating school
corporations for the term of the agreement, or by lease under the
provisions of IC 21-5-11 or IC 21-5-12. The agreement may include an
agreement to repair, equip, and maintain school buildings and
equipment and an agreement that participating school corporations may
use funds from their respective capital projects fund to pay for those
costs or for any other purposes authorized under IC 21-2-15
(repealed
January 1, 2005). The amount of money used from a participating
school corporation's cumulative building fund or capital projects fund
is to be determined by agreement among the participating school
corporations. The cost of the special education cooperative for each
school year shall be borne by the participating school corporations in
accordance with the terms of their agreement. Agreements for the
payment of the cost of the special education cooperative may establish
a formula for payments which meet the needs of the school
corporations or may base payments on a percentage share formula.
Upon the termination of the agreement, the participating school
corporations shall be liable for their respective portions of any long
term lease or other long term obligations in the same annual portions
as are provided in the agreement as though the agreement had not been
terminated, unless the terms under which such obligations were set up
otherwise provide. A special education cooperative has the authority to
employ teachers and issue teaching contracts in accordance with all the
provisions for public teaching contracts. Any teacher who has taught
or is teaching in a participating school corporation who became or
becomes a teacher in the special education cooperative shall retain
semipermanent, permanent, or nonpermanent status in such
participating school corporation, to the same extent as if he had
continued teaching in the participating school corporation, and his
employment may be terminated solely by the board of managers of the
special education cooperative.
(c) A teacher who:
(1) is employed by a special education cooperative; and
(2) previously taught in a participating school corporation;
retains all rights and privileges under IC 20-6.1-4, IC 20-6.1-5, and
IC 20-6.1-6 to the same extent as if the teacher had continued teaching
in the participating school corporation.
(d) A teacher who:
(1) is employed by a special education cooperative; and
(2) does not have existing years of service in any of the
participating school corporations;
shall be considered to be employed by the special education
cooperative and is entitled to the same rights and privileges under
IC 20-6.1-4, IC 20-6.1-5, and IC 20-6.1-6 as if the teacher were
employed by a school corporation.
(e) If a teacher loses the teacher's job in a special education
cooperative due to:
(1) a reduction in services of;
(2) a reorganization of;
(3) the discontinuance of; or
(4) a withdrawal in whole or in part of a participating school
corporation from;
the special education cooperative, the teacher shall be added to the
recall list of laid off teachers that is maintained by the participating
school corporations, and the teacher shall be employed under the terms
of the recall provisions of the participating school corporations for a
special education job opening that occurs in any of the participating
school corporations. In addition and during the time the former special
education cooperative teacher is entitled to remain on the recall list, all
teachers in the participating school corporation other than the former
special education cooperative teacher retain all rights and privileges for
job openings for which the other teachers are qualified and as granted
by the collective bargaining agreement in effect at the participating
school corporation or, if no provisions of a collective bargaining
agreement govern the rights and privileges, by the policy of the
governing body, including provisions governing layoffs and recall.
(f) If:
(1) a teacher loses the teacher's job in a special education
cooperative due to:
(A) a reduction in services of;
(B) a reorganization of;
(C) the discontinuance of; or
(D) a withdrawal in whole or in part of a participating school
corporation from;
the special education cooperative; and
(2) the teacher is employed by a participating school corporation
as described in subsection (e);
the teacher retains the rights and privileges under IC 20-6.1-4,
IC 20-6.1-5, and IC 20-6.1-6 that the teacher held at the time the
teacher lost the job in the special education cooperative as described in
subdivision (1).
(g) A special education cooperative may either be attached to a
participating school corporation which shall have responsibility for
administrative and financial controls, or it may establish a separate
treasury with separate accounts. When a special education cooperative
is not attached to a participating school corporation, it shall comply
with the state board of accounts' approved forms and rules for fiscal
accountability and be subject to audit by the state board of accounts. A
special education cooperative may be operated and managed and its
budget determined by a board of managers. The board of managers
consists of one (1) designated member from each participating school
corporation. The particular designated member from a participating
school corporation must be:
(1) the president (or trustee in the case of a school township) of
the governing body of a participating school corporation;
(2) any fellow member of such governing body whom such
president or trustee may designate;
(3) the superintendent of a participating school corporation
appointed by the president (or trustee in the case of a school
township) of the governing body of a participating school
corporation; or
(4) an assistant superintendent of a participating school
corporation appointed by the president (or trustee in the case of
a school township) of the governing body of a participating school
corporation.
Such designated member may be changed by the president or trustee
at any time. Meetings of the board of managers shall be held in
accordance with the provisions of IC 20-5-3-2.
(h) The special education cooperative may be organized in
accordance with IC 20-5-11 or IC 36-1-7.
SOURCE: IC 20-2-2-3; (04)IN1312.1.195. -->
SECTION 195. IC 20-2-2-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 3. (a) The township
trustees of each and every township of each county shall perform all the
civil functions performed before March 13, 1947, by such township
trustees and together with other township trustees of the county shall
constitute a county board of education for the purpose of managing the
affairs of the county school corporation hereby created in each such
county. School cities and school towns shall retain independent
organization and administration unless abandoned as provided by law,
and the county school corporation, also referred to in this chapter as the
county, shall include all areas not organized on March 13, 1947, under
the laws of this state into jurisdictions controlled and governed as
school cities or school towns. Said county board of education may be
referred to interchangeably as the county board of school trustees and
as the board. Said board shall meet at such time as the board shall
designate at the office of the county superintendent of schools and at
such other times and places as the county superintendent of schools
may deem necessary. At the first meeting of each year, to be held on
the first Wednesday after the first Monday in January, the board shall
organize by selecting a president, a vice president, a secretary, and a
treasurer from its membership. Provided, however, that no later than
April 12, 1947, it shall be the duty of the county superintendent of
schools to call said board into special session and unless the county
board of education shall elect to have the provisions of this section
remain inoperative, under provisions that may be included within this
section, said board shall so organize itself, except that the failure of the
county superintendent of schools to call the county board of education
into session within the prescribed limits of this section shall not be
construed to mean that a county school corporation as described in this
section shall be brought into existence in such county, and no such
county school corporation shall be brought into existence until the
board has met in special session subsequent to March 13, 1947, and has
taken action to organize itself into a county school corporation, after
consideration of the question whether it should elect to have the
provisions of this section remain inoperative under provisions that may
be included within this section. Such organization when and if effected
shall be filed with the county auditor and shall be published by said
auditor in two (2) newspapers of different political persuasions of
general circulation throughout the county within ten (10) days after
such filing, and such organization shall be deemed to fulfill all the
requirements of this section for the transacting of public business under
this section. The secretary of the board shall keep an accurate record of
the minutes of the board, which minutes shall be kept at the county
superintendent's office. The county superintendent shall act as
administrator of the board and shall carry out such acts and duties as
shall be designated by the board. A quorum shall consist of two-thirds
(2/3) of the members of the board.
(b) The board shall make decisions as to the general conduct of the
schools, which shall be enforced as entered upon the minutes recorded
by the secretary of the board, and shall exercise all powers exercised
before March 13, 1947, under the law, by or through township trustees
or meetings or petitions of the trustees of the county.
(c) The board shall appoint a county superintendent of schools who
shall serve for a term of four (4) years. The first such appointment
under this section shall be made in accordance with law in June 1949,
to become effective August 16, 1949, and thereafter the board shall fill
vacancies in this office by appointments which shall expire at the end
of the regular term. The county superintendent of schools and other
persons employed for administrative or supervisory duties shall be
deemed to be supervisors of instruction.
(d) The government of the common schools of the county shall be
vested in the board, and the board shall function with all the authority,
powers, privileges, duties, and obligations granted to or required of
school cities before March 13, 1947, and school towns and their
governing boards generally under the laws pertaining thereto with
reference to the purchase of supplies, purchase and sale of buildings,
grounds, and equipment, the erection of buildings, the employment and
dismissal of school personnel, the right and power to sue and be sued
in the name of the county, the insuring of property and employees, the
levying or imposition and collecting of taxes as authorized by law,
the making and executing of a budget, the borrowing of money, the
paying of the salaries and expenses of the county superintendent and
employees as approved by the board and to any act necessary to the
proper administration of the common schools of the county.
(e) Such school corporations shall be vested with all right, title, and
interest of their respective predecessor township school corporations
hereby terminated to and in all the real, personal, and other property of
any nature and from whatever source derived, and shall assume, pay,
and be liable for all the indebtedness and liabilities of the same.
(f) The treasurer, before entering upon the duties of his office, shall
execute a bond to the acceptance of the county auditor in an amount
equal to the largest sum of money that will be in the possession of the
treasurer at any one time conditioned as an ordinary official bond, with
a reliable surety company or at least two (2) sufficient freehold sureties,
who shall not be members of such board, as surety or sureties on such
bond. The president and secretary shall each give bond, with like surety
or sureties, to be approved by the county auditor, in the sum of
one-fourth (1/4) of said amount. Provided, that such boards of school
trustees may purchase said bonds from some reliable surety company,
and pay for them out of the special school revenue of their respective
counties.
(g) The powers set forth in this section shall not be considered as or
construed to limit the power and authority of such boards to the powers
therein expressly conferred or to restrict or modify any powers or
authority granted by any other law not in conflict with the provisions
of this section.
(h) Every such board shall have, as respects the levy of taxes by it,
power annually to levy such amount of taxes as in the judgment of such
board, made matter of record in its minutes, should be levied to
produce income sufficient to conduct and carry on the common schools
committed to such board, and it is hereby made the duty of such board
annually to levy a sum sufficient to meet all payments of principal and
interest as they will mature in the year for which such levy is made on
the bonds, notes, or other obligations of such board. The power of such
board in so making tax levies shall be exercised within statutory limits
and said levies shall be subject to the same review as school city and
school town levies. This subsection expires January 1, 2005.
SOURCE: IC 20-2-9-2; (04)IN1312.1.196. -->
SECTION 196. IC 20-2-9-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 2. Said school trustees
shall maintain in each school corporation a term of school at least six
(6) months in duration and shall authorize a local tuition levy sufficient
to conduct a six (6) months term of school each year based on estimates
and receipts from all sources for the previous year, which may include
that received from the state's tuition revenue: Provided, Such levy shall
not exceed the limit now provided by law. This section expires
January 1, 2005.
SOURCE: IC 20-3-11-18; (04)IN1312.1.197. -->
SECTION 197. IC 20-3-11-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 18. Every such board
of school commissioners shall have, as respects the levy of taxes by it,
power annually to levy such amount of taxes as in the judgment of said
board, made matter of record in its minutes, should be levied to
produce income sufficient to conduct and carry on the work committed
to such board, and it is hereby made the duty of said board annually to
levy a sum sufficient to meet all payments of principal and interest as
they will mature in the year for which such levy is made on the bonds,
notes or other obligations of said board, and the fund arising from any
levy made by such board shall be known as its "general fund." Said
general fund may lawfully be used by said board for any purpose within
the scope of the duties of such board as imposed by law. This section
expires January 1, 2005.
SOURCE: IC 20-3-11-20; (04)IN1312.1.198. -->
SECTION 198. IC 20-3-11-20, AS AMENDED BY P.L.90-2002,
SECTION 402, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 20.
(a) Each such board of school
commissioners may from time to time, whenever its general fund shall
be exhausted or in the board's judgment be in danger of exhaustion,
make temporary loans for the use of its general fund to be paid out of
the proceeds of taxes theretofore levied by such school city for its
general fund. The amount so borrowed in aid of said general fund shall
be paid into said general fund and may be used for any purpose for
which the said general fund lawfully may be used. Any such temporary
loan shall be evidenced by the promissory note or notes of said school
city, shall bear interest at not more than seven per cent (7%) per
annum, interest payable at the maturity of the note or periodically, as
the note may express, and shall mature at such time or times as the
board of school commissioners may decide, but not later than one (1)
year from the date of the note. No such loan or loans made in any one
(1) calendar year shall be for a sum greater than the amount estimated
by said board as the proceeds to be received by it from the levy of taxes
theretofore made by said school city in behalf of its said general fund.
Successive loans may be made in aid of said general fund in any
calendar year, but the aggregate amount thereof, outstanding at any one
(1) time, shall not exceed such estimated proceeds of taxes levied in
behalf of the said general fund.
(b) No such loan shall be made until notice asking for bids therefor
shall have been given by newspaper publication, which publication
shall be made one (1) time in a newspaper published in said city and
said publication shall be at least seven (7) days before the time when
bids for such loans will be opened. Bidders shall name the amount of
interest they agree to accept not exceeding seven per cent (7%) per
annum, and the loan shall be made to the bidder or bidders bidding the
lowest rate of interest. The note or notes or warrants shall not be
delivered until the full price of the face thereof shall be paid to the
treasurer of said school city, and no interest shall accrue thereon before
such delivery.
(c) Any such school corporation wishing to make a temporary loan
in aid of its general fund, finding that it has need to exercise the power
in this section above given to make a temporary loan, which has in its
treasury money derived from the sale of bonds, which money derived
from the sale of bonds can not or will not, in the due course of the
business of said school city, be expended in the then near future, may,
if it so elects, temporarily borrow, and without payment of interest,
from such bond fund, for the use and aid of said general fund in the
manner and to the extent hereinafter expressed, viz.: Such school city
shall, by its board of school commissioners, take all the steps required
by law to effect such temporary loan up to the point of advertising for
bids or offers for such loans; it shall then present to the department of
local government finance of the state of Indiana, and to the state board
of accounts of the state of Indiana, a copy of the corporate action of
said school city concerning its desire to make such temporary loan and
a petition showing the particular need for such temporary loan, and the
amount and the date or dates when said general fund will need such
temporary loan, or instalments of such loan, and the date at which such
loan, and each instalment thereof, will be needed, and the estimated
amounts from taxes to come into said general fund, and the dates when
it is expected such proceeds of taxes will be received by such school
city in behalf of said general fund, and showing what amount of money
said school city has in any fund derived from the proceeds of the sale
of bonds, which can not or will not be expended in the then near future,
and showing when and to what extent and why money in such bond
fund, not soon to be expended, will not be expended in the then near
future and requesting that the department of local government finance,
and said state board of accounts, respectively, authorize a temporary
loan from said bond fund in aid of said general fund.
(d) If the department of local government finance shall find and
order that there is need for such temporary loan, and that it should be
made, and said state board of accounts shall find that the money
proposed to be borrowed will not be needed during the period of the
temporary loan by the fund from which it is to be borrowed, and the
state board of accounts and the department of local government finance
shall approve the loan, the business manager and treasurer of said
school city shall, upon such approval by the state board of accounts and
the department of local government finance, take all steps necessary to
transfer the amount of such loans, as a temporary loan from the fund to
be borrowed from, to said general fund of such school city. The loan so
effected shall, for all purposes, be a debt of the school city chargeable
against its constitutional debt limit.
(e) The state board of accounts and the department of local
government finance may fix the aggregate amount so to be borrowed
on any one (1) petition and shall determine at what time or times and
in what instalments and for what periods it shall be borrowed. The
treasurer and business manager of such school city, from time to time,
as money shall be collected from taxes levied in behalf of said general
fund, shall credit the same on such loan until the amount borrowed is
fully repaid to the lending fund, and they shall at the end of each
calendar month report to the board the several amounts so applied from
taxes to the payment of such loan.
(f) The school city shall, as often as once a month, report to both the
state board of accounts and the department of local government finance
the amount of money then so borrowed and unpaid, the anticipated like
borrowings of the current month, the amount left in the said general
fund, and the anticipated drafts upon the lending bond fund for the
objects for which that fund was created.
(g) The state board of accounts and the department of local
government finance, or either of them, may, if it shall seem to the board
and department, or to either of them, that the fund from which the loan
was made requires the repayment of all or of part of such loan(s) before
its maturity or said general fund no longer requires all or some part of
the proceeds of such loan, require such school city to repay all or any
part of such loan, and, if necessary to perform the requirement, such
school city shall exercise its power of making a temporary loan
procured from others to raise the money so needed to repay the lending
bond fund the amount so ordered repaid.
(h) This section expires January 1, 2005.
SOURCE: IC 20-3-14-3; (04)IN1312.1.199. -->
SECTION 199. IC 20-3-14-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 3. An annexation may
be effected by any school corporation as follows:
(a) Both the acquiring and the losing school corporations shall each
adopt a substantially identical annexation resolution. This resolution
shall contain the following items:
(1) A description of the annexed territory. Such description shall
as near as reasonably possible be by streets and other boundaries
known by common names and need not be in addition by legal
description unless such additional description is necessary to
identify the annexed territory. No notice shall be defective if there
is a good faith compliance with this section and if the area
designated may be ascertained with reasonable certainty by
persons skilled in the area of real estate description.
(2) The time the annexation takes place. This may vary with
respect to the different parts of the annexed territory; and if the
entire annexed territory is contiguous to the acquiring corporation
the parts of the annexed territory may be annexed so that some
parts may not be contiguous to the annexed territory for temporary
periods.
(3) Any terms and conditions facilitating education of pupils in
the annexed territory, in the losing school corporation, or in the
acquiring school corporation. Such terms may provide for, but
shall not be limited to, the continued attendance by children in the
annexed territory at schools in the losing school corporation for
specified periods of time after annexation on a transfer basis. In
such instances transfer tuition for such children shall be paid by
the acquiring school corporation to the losing school corporation
in the manner and at the rates provided by the statutes of the state
of Indiana governing the computation and payment of transfer
tuition costs.
(4) Disposition of assets and liabilities of the losing school
corporation to the acquiring school corporation; allocation
between the acquiring and losing school corporations of
subsequently collected school taxes levied on property tax
receipts in the annexed territory; and the amount, if any, to be
paid by the acquiring school corporation to the losing school
corporation on account of property received from the latter. Such
disposition, allocation, and amount shall be equitable.
(b) After the adoption of such resolution, notice shall be given by
publication in both the acquiring and the losing school corporations
setting out the text of the resolution, together with a statement that such
resolution had been adopted and that a right of remonstrance exists as
provided in this chapter. It shall not be necessary to set out the
remonstrance provisions of this chapter, but a general reference to a
right of remonstrance with a reference to this chapter shall be
sufficient. The annexation shall take effect within thirty (30) days after
such publication, or at the time provided in the resolution, whichever
is later, unless within such period a remonstrance (based on a ground
other than that set out in section 6(a)(5) of this chapter) is filed in the
circuit or superior court of the county where the annexed territory or
any part thereof is located, by registered voters residing in the losing
school corporation at least equal in number to the greater of the
following:
(1) ten percent (10%) of the number of registered voters residing
in the losing school corporation; or
(2) fifty-one percent (51%) of the number of registered voters
residing in the annexed territory.
SOURCE: IC 20-3-14-7; (04)IN1312.1.200. -->
SECTION 200. IC 20-3-14-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 7. With respect to
whether the disposition of the assets and liabilities of the losing school
corporation, allocation of school tax receipts, and the amount to be paid
by the acquiring school corporation is equitable, the court shall be
satisfied that the annexing resolution conforms substantially to the
following standards:
(a) The acquiring school corporation shall assume a portion of all
installments of principal and interest on any indebtedness of the losing
school corporation (other than current obligations or temporary
borrowing) which fall due after the end of the last calendar year in
which the losing school corporation is entitled to receive current tax
receipts
from property tax levies on the property on in the annexed
territory. Such portion shall consist of the following:
(1) All such installments relating to any indebtedness incurred in
connection with the acquisition or construction of any building
located in the annexed territory.
(2) A proportion of all such installments relating to any other
indebtedness which is the same proportion as the valuation of the
real property in the annexed territory bears to the valuation of all
the real property in the losing school corporation, as the same is
assessed for general taxation immediately prior to annexation.
(b) The acquiring school corporation shall make the payments and
assume the obligations provided for a school corporation acquiring
territory and/or building or buildings under IC 21-5-10.
(c) Unless the losing school corporation shall consent to some other
allocation, the portion of the special school and tuition fund moneys
collected by the losing school corporation shall not be allocated in a
greater amount to the acquiring school corporation than would be
awarded if such two (2) corporations were respectively the original
school corporation and the annexing school corporation within the
meaning of IC 20-4-16, and the amount to be paid the losing
corporation by the acquiring school corporation on account of the
acquisition by the acquiring school corporation of a building in the
annexed territory shall not be less than would be awarded if such two
(2) school corporations were respectively the acquiring corporation and
original school corporation within the meaning of IC 20-4-15.
(d) Where the annexed territory includes all of any losing school
corporation, the acquiring school corporation shall acquire all of the
property and assets of the losing school corporation without making
payment of any nature for the same and shall assume all of the
liabilities and obligations of the losing school corporation.
SOURCE: IC 20-3.1-15-1; (04)IN1312.1.201. -->
SECTION 201. IC 20-3.1-15-1, AS AMENDED BY P.L.1-2002,
SECTION 76, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 1. To provide the board with the necessary
flexibility and resources to carry out this article, the following apply:
(1) The board may eliminate or modify existing policies, create
new policies, and alter policies from time to time, subject to this
article and the plan developed under IC 20-3.1-7.
(2) Beginning on July 1, 2001, IC 20-7.5 applies to the school
city; however, the provision of IC 20-7.5-1-5(a) that requires any
items included in the 1972-1973 agreements between an employer
school corporation and an employee organization to continue to
be bargainable does not apply to the school city.
(3) The board of school commissioners may waive the following
statutes and rules for any school in the school city without the
need for administrative, regulatory, or legislative approval:
(A) The following rules concerning curriculum and
instructional time:
511 IAC 6.1-3-4
511 IAC 6.1-5-0.5
511 IAC 6.1-5-1
511 IAC 6.1-5-2.5
511 IAC 6.1-5-3.5
511 IAC 6.1-5-4
(B) The following rules concerning pupil/teacher ratios:
511 IAC 6-2-1(b)(2)
511 IAC 6.1-4-1
(C) The following statutes and rules concerning textbooks, and
rules adopted under the statutes:
IC 20-10.1-9-1
IC 20-10.1-9-18
IC 20-10.1-9-21
IC 20-10.1-9-23
IC 20-10.1-9-27
IC 20-10.1-10-1
IC 20-10.1-10-2
511 IAC 6.1-5-5
(D) The following rules concerning school principals:
511 IAC 6-2-1(c)(4)
511 IAC 6.1-4-2
(E) 511 IAC 2-2, concerning school construction and
remodeling.
(4) Notwithstanding any other law, a school city may do the
following:
(A) Lease school transportation equipment to others for
nonschool use when the equipment is not in use for a school
city purpose.
(B) Establish a professional development and technology fund
to be used for:
(i) professional development; or
(ii) technology, including video distance learning.
(C) Transfer funds obtained from sources other than state or
local government taxation among any account of the school
corporation, including a professional development and
technology fund established under clause (B).
(5) Transfer funds obtained from property taxation money among
the general fund (established under IC 21-2-11) and the school
transportation fund (established under IC 21-2-11.5) funds of the
school corporation. subject to the following:
(A) The sum of th e property tax rates for the general fund and
the school transportation fund after a transfer occurs under this
subdivision may not exceed the sum of the property tax rates
for the general fund and the school transportation fund before
a transfer occurs under this clause.
(B) However, this clause subdivision does not allow a school
corporation to transfer to any other fund money from the debt
service fund (established under IC 21-2-4).
SOURCE: IC 20-4-1-18; (04)IN1312.1.202. -->
SECTION 202. IC 20-4-1-18, AS AMENDED BY P.L.90-2002,
SECTION 403, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 18. (a) Whenever the creation of a
community school corporation out of an existing corporation would
involve no change in its territorial boundaries or in its board of school
trustees or other governing body, other than a change, if any, in the
time of election or appointment or the time the board members take
office, and such creation is consistent with the standards set up
pursuant to the provisions of this chapter as modified, if any, by the
standards set out in this section, the state board may upon its own
motion or upon petition of the governing body of the existing school
corporation at any time with hearing in the county where such school
corporation is located, after notice by publication at least once in one
(1) newspaper of general circulation published in the county where
such school corporation is located, at least ten (10) but not more than
thirty (30) days prior to the date of such hearing and without action of
the county committee declare such existing school corporation to be a
community school corporation by adopting a resolution to this effect.
Such existing school corporation shall qualify as to size and financial
resources if it has an average daily attendance of two hundred seventy
(270) or more, in grades nine (9) through twelve (12), or of one
thousand (1,000) or more, in grades one (1) through twelve (12), and
has an assessed valuation per pupil of five thousand dollars ($5,000) or
more. For the purposes of this provision the following terms shall have
the following meanings:
(1) "County tax" shall be a property tax which is levied at an
equal rate in the entire county in which any school corporation is
located, other than a tax qualifying as a county-wide tax within
the meaning of Acts 1959, c.328, s.2, or any similar statute, and
the net proceeds of which are distributed to school corporations
in the county.
(2) "Assessed valuation" of any school corporation shall mean the
net assessed value of its real and personal property as of March 1,
1964, adjusted in the same manner as such assessed valuation is
adjusted for each county by the department of local government
finance under Acts 1949, c.247, s.5, as now or hereafter amended,
unless such statute has been repealed or no longer provides for
such adjustment. In the event a county has a county tax, then the
assessed valuation of each school corporation in the county shall
be increased by the amount of assessed valuation, if any, which
would be required to raise an amount of money, equal to the
excess of the amount distributed to any school corporation from
the county tax over the amount collected from such county tax in
such school corporation, using total taxes levied by such school
corporation in terms of rate excluding the countywide tax under
Acts 1959, c.328, s.2, or any similar statute, and including all
other taxes levied by or for such school corporation, including but
not limited to the county tax, bond fund levy, lease rental levy,
library fund levy, special school fund levy, tuition fund levy,
capital projects fund levy, and special funds levies. Such
increased valuation shall be based on the excess distributed to the
school corporation from the county tax levied for the year 1964
and the total taxes levied for such year, or if the county tax is first
applied or is raised for years after 1964, then the excess
distributions and total taxes levied for the year in which such tax
is first applied or raised. In the event such excess distribution and
total taxes levied cannot be determined accurately on or prior to
the adoption of the resolution provided in this section, excess
distribution and taxes levied shall be estimated by the department
of local government finance using the last preceding assessed
valuations and tax rates or such other information as they shall see
fit, certifying such increased assessment to the state board prior
to such time. In all cases, the excess distribution shall be
determined upon the assumption that the county tax is one
hundred percent (100%) collected and all collections are
distributed.
(3) "Assessed valuation per pupil" of any school corporation
means the assessed valuation of any such school corporation
divided by its average daily attendance in grades one (1) through
twelve (12).
(4) "Average daily attendance" in any school corporation shall
mean the average daily attendance of pupils who are residents in
such school corporation and in the particular grades to which such
term refers for the school year 1964-1965 in accordance with the
applicable regulations of the state superintendent of public
instruction, used in determining such average daily attendance in
the distribution of the tuition funds by the state to its various
school corporations where such funds are distributed on such
basis and irrespective of whether such figures are the actual
resident daily attendance of such school for the school year.
(b) Such community school corporation shall automatically come
into being on either July 1 or January 1 following the date of such
approval, whichever is earlier. The state board shall mail by certified
United States mail, return receipt requested, a copy of such resolution
certified by its director or its secretary to the recorder of the county
from which the county committee having jurisdiction of such existing
school corporation was appointed and to such county committee. Such
resolution may change the time of election or appointment of the board
members of such school corporation or the time such board members
take office. The recorder shall without cost record such certified
resolution in the miscellaneous records of the county. Such recording
shall constitute a permanent record of the action of the state board and
may be relied on by any person. Unless the resolution otherwise
provides no interim board member shall be appointed, the board
members in office on the date of such action shall continue to
constitute the board of trustees of such school corporation until their
successors are qualified, and the terms of their respective office and
board membership shall remain unchanged except to the extent that
such resolution otherwise provides. For all purposes under this chapter,
community school corporation shall be regarded as a school
corporation created under the provisions of section 22 of this chapter.
(c) This section expires January 1, 2005.
SOURCE: IC 20-4-1-26.9; (04)IN1312.1.203. -->
SECTION 203. IC 20-4-1-26.9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 26.9. (a) This section
applies to each school corporation, whenever created.
(b) Each board of school trustees created under this chapter may
annually levy the amount of taxes that, in the judgment of the board,
made a matter of record in its minutes, should be levied to produce
income sufficient to conduct and carry on the public schools committed
to the board. The board shall annually levy a rate that will produce a
sum sufficient to meet all payments of principal and interest as they
mature in the year for which the levy is made on the bonds, notes, or
other obligations of the community school corporation.
(c) The power of the board in making tax levies shall be exercised
within existing statutory limits. The levies are subject to the same
review as school city levies and shall be at a uniform and equal rate on
all taxable property located within the boundaries of the community
school corporation.
(d) This section expires January 1, 2005.
SOURCE: IC 20-4-1-32; (04)IN1312.1.204. -->
SECTION 204. IC 20-4-1-32 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 32. (a) For the purpose
of defraying the expenses of the county study, a county committee may
prepare and submit to the county council on or before August 1 of each
year during the life of the committee, a budgetary request. The county
council may, upon receipt of such request, establish a uniform ad
valorem tax levy on all real and personal property situated within the
county, in such amount as shall be sufficient to raise an amount of
money not to exceed the amount of such budget request.
(b) The county committee may request from the county council
sufficient sums of money necessary to defray legal expenses incident
to placing the county plan in operation.
(c) This section expires January 1, 2005.
SOURCE: IC 20-4-1-35; (04)IN1312.1.205. -->
SECTION 205. IC 20-4-1-35 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 35.
(1) (a) A
reorganization plan may provide that the proposed community school
corporation or united school corporation shall pay to each civil
township, civil city, or civil town, located therein, which has issued
school aid bonds, prior to the due date thereof, amounts sufficient to
pay principal and interest on such school aid bonds.
(2) (b) As an alternative to the above provision a reorganization
plan may provide for the payment of outstanding school aid bonds of
any of the foregoing civil units, by the civil townships located in the
territory of such community school corporation or united school
corporation with each civil township paying each year a proportionate
share of the cost of the payment of the principal and interest of such
school aid bonds falling due each year, such proportionate share to be
in the proportion that the net assessed valuation of such civil township's
taxable property located within the community or united school
corporation bears to the total net assessed valuation in such community
or united school corporation. Said annual amount shall be paid in
semi-annual instalments on the 20th day of June and December of each
year to the treasurer of the board of school trustees of the community
or united school corporation who shall in turn promptly pay over to the
fiscal officer of each civil unit having outstanding school aid bonds an
amount sufficient to pay the then next succeeding instalment of
principal and interest on said bonds.
(c) This section expires January 1, 2005.
SOURCE: IC 20-4-1-36; (04)IN1312.1.206. -->
SECTION 206. IC 20-4-1-36 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 36. If any
reorganization plan provides for the payment of school aid bonds as
authorized in section 35(1) or section 35(2) of this chapter, each school
corporation or civil township which is required to make such payments
is hereby authorized and required to include in their annual budgets an
amount sufficient to make such payments and to levy a tax therefor
which tax in the case of civil townships shall be levied only on the
property located within the community or united school corporation
(which property shall constitute a special taxing district), which shall
be in addition to all taxes heretofore authorized and such levy shall be
reviewable by other bodies vested by law with such authority to
ascertain that the levy is sufficient to raise the amount required to meet
the payments; provided, however, that no payments as above provided
for shall be required prior to the first June 20 following the first August
1 after the proposed community school corporation or united school
corporation has come into existence. This section expires January 1,
2005.
SOURCE: IC 20-4-1-37; (04)IN1312.1.207. -->
SECTION 207. IC 20-4-1-37 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 37. In any community
or united school corporation formed before March 11, 1961, the civil
townships shall make the payments as provided in section 35(2) of this
chapter and shall levy taxes as provided in section 36 of this chapter as
if such provision had been included in the reorganization plan adopted.
This section expires January 1, 2005.
SOURCE: IC 20-4-1-38; (04)IN1312.1.208. -->
SECTION 208. IC 20-4-1-38 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 38. In any community
school corporation formed before or after July 26, 1967, the board of
school trustees may by resolution provide for making payments to civil
townships as provided in section 35(1) of this chapter and shall levy
taxes as provided in section 36 of this chapter as if such provision had
been included in the reorganization plan adopted. This section expires
January 1, 2005.
SOURCE: IC 20-4-4-3; (04)IN1312.1.209. -->
SECTION 209. IC 20-4-4-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 3. An annexation may
be effected by any school corporation as follows:
(a) Both the acquiring and the losing school corporations shall each
adopt a substantially identical annexation resolution. This resolution
shall contain the following items:
(1) The name of the acquiring school corporation after the
effective date of the annexation, which name may differ from the
name of the acquiring corporation at the time of the adoption of
the resolution.
(2) A description of the annexed territory. Such description shall
as near as reasonably possible be by streets and other boundaries
known by common names and need not be in addition by legal
description unless such additional description is necessary to
identify the annexed territory. No notice shall be defective if there
is a good faith compliance with this section and if the area
designated may be ascertained with reasonable certainty by
persons skilled in the area of real estate description.
(3) The time the annexation takes place.
(4) Any terms and conditions facilitating education of pupils in
the annexed territory, in the losing school corporation or in the
acquiring school corporation. Such terms may provide for, but
shall not be limited to, the continued attendance by children in the
annexed territory at schools in the losing school corporation for
specified periods of time after annexation on a transfer basis. In
such instances transfer tuition for such children shall be paid by
the acquiring school corporation to the losing school corporation
in the manner and at the rates provided by the statutes of the state
of Indiana governing the computation and payment of transfer
tuition costs.
(5) Disposition of assets and liabilities of the losing school
corporation to the acquiring school corporation; allocation
between the acquiring and losing school corporations of
subsequently collected school taxes
levied on property in the
annexed territory; and the amount, if any, to be paid by the
acquiring school corporation to the losing school corporation on
account of property received from the latter. Such disposition,
allocation and amount shall be equitable.
(b) After the adoption of such resolution, notice shall be given by
publication in both the acquiring and the losing school corporations
setting out the text of the resolution, together with a statement that such
resolution has been adopted and that a right of remonstrance exists as
provided in this chapter. It shall not be necessary to set out the
remonstrance provisions of this chapter, but a general reference to a
right of remonstrance with a reference to this chapter shall be
sufficient. The annexation shall take effect within thirty (30) days after
such publication, or at the time provided in the resolution, whichever
is later, unless within such period a remonstrance is filed in the circuit
or superior court of the county where the annexed territory or any part
thereof is located, by registered voters residing in the losing school
corporation at least equal in number to the greater of the following:
(1) ten percent (10%) of the number of registered voters residing
in the losing school corporation; or
(2) fifty-one percent (51%) of the number of registered voters
residing in the annexed territory.
SOURCE: IC 20-4-4-7; (04)IN1312.1.210. -->
SECTION 210. IC 20-4-4-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 7. (a) With respect to
whether the disposition of the assets and liabilities of the losing school
corporation, allocation of school tax receipts and the amount to be paid
by the acquiring school corporation is equitable, the court subject to the
provisions of subdivision (b) shall be satisfied that the annexing
resolution conforms substantially to the following standards:
(1) The acquiring school corporation shall assume a portion of all
installments of principal and interest on any indebtedness of the
losing school corporation (other than current obligations or
temporary borrowing) which fall due after the end of the last
calendar year in which the losing school corporation is entitled to
receive current tax receipts
from property tax levies on the
property on in the annexed territory. Such portion shall consist of
the following:
(i) (A) all such installments relating to any indebtedness
incurred in connection with the acquisition or construction of
any building located in the annexed territory, and
(ii) (B) a proportion of all such installments relating to any
other indebtedness which is the same proportion as the
valuation of the real property in the annexed territory bears to
the valuation of all the real property in the losing school
corporation, as the same is assessed for general taxation
immediately prior to annexation.
(2) The acquiring school corporation shall make the payments and
assume the obligations provided for school corporation acquiring
territory and/or building or buildings under IC 21-5-10.
(3) Unless the losing school corporation shall consent to some
other allocation: the portion of the general fund moneys collected
by the losing school corporation shall not be allocated to the
acquiring school corporation in a greater amount than would be
awarded if such two (2) corporations were respectively the
"original school corporation" and the "annexing school
corporation" within the meaning of IC 20-4-16, using the method
therein provided for allocating the special school and tuition fund
moneys.
(b) Such standards shall not be applicable to the extent the losing
and acquiring school corporations otherwise agree in a situation where
all or a majority of the students in the annexed territory have been
transferred from the losing to the acquiring school corporation for the
five (5) school years immediately preceding the transfer. Such
agreement, as between school corporations, shall not, however,
prejudice the rights of bondholders or lessors whose rights as against
the losing and acquiring school corporations shall, upon enforcement,
be allocated between them in accordance with subsection (a)(1) and
(2).
SOURCE: IC 20-4-5-9; (04)IN1312.1.211. -->
SECTION 211. IC 20-4-5-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 9. Except as otherwise
provided with respect to the power to issue bonds in section 10 of this
chapter, said school board shall perform the duties and shall have all
the powers vested in the school board or board of trustees of a school
city of the class in which the consolidated school corporation would
fall on the basis of its population according to the last preceding United
States census under the statutes of this state, if it were organized as a
school city. In the event, however, such consolidated school
corporation has a population determined in such manner of less than
two thousand (2,000), such school board shall perform the duties and
shall have all the powers vested in the school board of a school town.
The cost of maintaining such consolidated schools shall be borne by the
consolidated school corporation, as a single tax unit. Taxes to meet
such cost shall be levied by said consolidated school board at a uniform
and equal rate on all the taxable property located within the limits of
said consolidated school corporation, and collected in the city or cities,
town or towns, township or townships in the same manner as other
taxes are levied and collected. This section expires January 1, 2005.
SOURCE: IC 20-4-5-10; (04)IN1312.1.212. -->
SECTION 212. IC 20-4-5-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 10. (a) Whenever it
shall become necessary to build a new building or buildings, or to make
repairs or alterations on old ones, said school board shall have the
power to build such new building or buildings, or to repair or alter such
old ones as they may deem necessary and to purchase the necessary site
therefor; and the cost thereof shall be taxed against all taxable property
lying within the corporate limits of such newly consolidated school
corporation. Said school board shall have the power to issue bonds of
such new school corporation against the taxable property lying within
the corporate limits of the newly consolidated school corporation to
meet the cost of any new building or buildings, or the repair or
alteration of old ones.
(b) Such bonds authorized by this chapter shall be payable in such
amounts and at such times as the school board may determine, and
shall bear such rate of interest as may be determined.
(c) Said board shall have the power to levy and collect taxes to meet
the payment of any bonds issued pursuant to this chapter. Provided,
That said The school board shall have all of the powers given and
granted to school corporations for the appropriation of the real estate
for school purposes, by IC 20-5-23. This subsection expires January
1, 2005.
SOURCE: IC 20-4-8-11; (04)IN1312.1.213. -->
SECTION 213. IC 20-4-8-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 11. (a) The board as
above referred to shall make decisions pertaining to the general
conduct of the schools which shall be enforced as entered upon the
minutes recorded by the secretary of the board, and subject to
provisions in this chapter otherwise, shall exercise all powers
previously exercised under the law, by or through township trustees or
meetings or petitions of the township trustees of the county, or county
boards of education previously existing and such offices, namely,
township trustee, county board or county boards of education insofar
as the conduct of public schools is concerned are abolished as of noon
on the day and date the county school corporation is created and comes
into existence under this chapter.
(b) The county superintendent of schools and other persons
employed for administrative or supervisory duties may be deemed to
be supervisors of instruction.
(c) The government of the common schools of the county shall be
vested in the board, and the board shall function with all the authority,
powers, privileges, duties, and obligations previously granted to or
required of school cities and their governing boards generally under the
laws pertaining thereto with reference to the purchase of supplies,
purchase and sale of buildings, grounds, and equipment, the erection
of buildings, the employment and dismissal of school personnel, the
insuring of property and employees, the levying and collecting of taxes,
the making and executing of a budget, the borrowing of money, the
paying of the salaries and expenses of the county superintendent and
employees as approved by the board, shall be a body corporate and
politic by the name and style of "The County School Corporation of
_______ County, Indiana" with the right to prosecute and defend suits;
and shall act in any manner necessary to the proper administration of
the common schools of the county.
(d) School corporations shall be vested with all rights, titles, and
interests of their respective predecessor township and town school
corporations terminated; and in all the real, personal, and other
property of any nature and from whatever source derived, and shall
assume, pay, and be liable for all the indebtedness, obligations, and
liabilities and duties of the predecessor corporations from whatever
source derived and however arising, and shall institute and defend suits
arising out of aforesaid liabilities, obligations, duties, and rights
assumed as a county school corporation.
(e) The treasurer, before entering upon the duties of his office, shall
execute a bond to the acceptance of the county auditor in an amount
equal to the largest sum of money that will be in the possession of the
treasurer at any one time, conditioned as an ordinary official bond, with
a reliable surety company or at least two (2) sufficient freehold sureties,
who shall not be members of such board, as surety or sureties on such
bond. The president and the secretary shall each give bond, with like
surety or sureties, to be approved by the county auditor, in the sum of
one-fourth (1/4) of said amount. Boards of school trustees may
purchase bonds from some reliable surety company and pay for them
out of the special school revenue of their respective counties.
(f) The powers set forth in this section shall not be considered as or
construed to limit the power and authority of such boards to the powers
therein expressly conferred or to restrict or modify any powers or
authority granted by any other law not in conflict with the provisions
of this section.
(g) Every such board shall have the power annually to levy such
amount of taxes as in the judgment of such board, made matter of
record in its minutes, should be levied to produce income sufficient to
conduct and carry on the common schools committed to such board,
and it is made the duty of such board annually to levy a rate and levy
that will produce a sum sufficient to meet all payments of principal and
interest as they will mature in the year for which such levy is made on
the bonds, notes, or other obligations of such board. The power of such
board in so making tax levies shall be exercised within existing
statutory limits and said levies shall be subject to the same review as
school city levies. This subsection expires January 1, 2005.
SOURCE: IC 20-4-8-21; (04)IN1312.1.214. -->
SECTION 214. IC 20-4-8-21 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 21. (a) The board as
referred to in this chapter shall make decisions pertaining to the general
conduct of the schools which shall be enforced as entered upon the
minutes recorded by the secretary of the board, and, subject to this
chapter, shall exercise all powers previously exercised under the law,
by or through township trustees or meetings or petitions of the
township trustees of the county, and/or county boards of education
previously existing, and such offices, namely township trustee, county
board and/or county boards of education insofar as the conduct of
public schools is concerned are hereby abolished as of noon on the day
and date the metropolitan school district is created and comes into
existence.
(b) The metropolitan superintendent of schools and other persons
employed for administrative or supervisory duties may be deemed to
be supervisors of instruction and as such eligible, subject to the rules
that have been or shall be adopted by the state board of education, to
qualify for teaching units in accordance with law.
(c) The government of the common schools of said district shall be
vested in the board, and the board shall function with all the authority,
powers, privileges, duties, and obligations previously granted to or
required of school cities and their governing boards generally under the
laws pertaining thereto with reference to the purchase of supplies,
purchase and sale of buildings, grounds, and equipment, the erection
of buildings, the employment and dismissal of school personnel, the
insuring of property and employees, the levying and collecting of taxes,
the making and executing of a budget, the borrowing of money, the
paying of the salaries and expenses of the county superintendent and
employees as approved by the board; shall be a body corporate and
politic by the name and style of "The Metropolitan School District of
________, Indiana" with the right to prosecute and defend suits and
shall act in any manner necessary to the proper administration of the
common schools of the county.
(d) Such school districts shall be vested with all rights, titles, and
interests of their respective predecessor township and town school
corporations hereby terminated and in all the real, personal, and other
property of any nature and from whatever source derived, and shall
assume, pay, and be liable for all the indebtedness, obligations, and
liabilities and duties of said predecessor corporations from whatever
source derived and however arising and shall institute and defend suits
arising out of aforesaid liabilities, obligations, duties, and rights
assumed as a metropolitan school district.
(e) The treasurer, before entering upon the duties of his office, shall
execute a bond to the acceptance of the county auditor which shall in
no event be greater than the largest sum of money that will be in the
possession of the treasurer at any one time. The board of education may
purchase said bond from a reliable surety company and pay for it out
of the special school revenue of the metropolitan district.
(f) The powers set forth in this section shall not be considered as or
construed to limit the power and authority of such boards to the powers
therein expressly conferred or to restrict or modify any powers or
authority granted by any other law not in conflict with the provisions
of this section.
(g) Every such board shall have the power annually to levy such
amount of taxes as in the judgment of such board, made matter of
record in its minutes, should be levied to produce income sufficient to
conduct and carry on the common schools committed to such board,
and it is hereby made the duty of such board annually to levy a rate and
levy that will produce a sum sufficient to meet all payments of
principal and interest as they will mature in the year for which such
levy is made on the bonds, notes, or other obligations of such board.
The power of such board in so making tax levies shall be exercised
within statutory limits and said levies shall be subject to the same
review as school city levies. This subsection expires January 1, 2005.
SOURCE: IC 20-4-8-22; (04)IN1312.1.215. -->
SECTION 215. IC 20-4-8-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 22. Provided, however,
That wherever a metropolitan school district formed hereunder shall
include territory lying in more than one (1) county the respective
counties, boards, commissions, and officers of each of said counties
shall do and perform and cause to be done and performed all things
required hereby to form such metropolitan school district jointly and
severally as the case may require for the proper formation and
functioning thereof including but not restricted to the following: the
dividing of the same into board member districts, the levying
or
imposition and collection of taxes
authorized by law and allocation
of receipts thereof, the filing of petitions for nomination, the printing
and distribution of ballots, tabulating and certifying election results,
and filling of vacancies.
SOURCE: IC 20-4-8-23; (04)IN1312.1.216. -->
SECTION 216. IC 20-4-8-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 23. Whenever any
county or metropolitan school district shall have been created as
provided herein, the boards of education of such districts shall be
empowered to levy or impose and collect taxes authorized by law
that are sufficient in amount to conduct the schools of said district. in
the same manner and with the same supervision that taxes are levied
and collected by cities and towns.
SOURCE: IC 20-4-15-3; (04)IN1312.1.217. -->
SECTION 217. IC 20-4-15-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 3. Whenever any civil
city or town shall after March 9, 1959, annex territory and the original
school corporation at the time of annexation has an outstanding
indebtedness, other than the indebtedness to be paid by the acquiring
school corporation under section 2 of this chapter, the civil city or town
shall assume and pay as the same shall become due, a portion of all
installments of principal and interest which fall due on such
indebtedness after the end of the last calendar year in which the
original school corporation is entitled to receive current tax receipts
from property tax levies on the property in the annexed territory. Such
proportion shall be the same proportion as the valuation of the real
property in the annexed territory bears to the valuation of all of the real
property in the original school corporation, as the same is assessed for
general taxation immediately prior to the annexation. Such payments
shall be made to the original school corporation as agent for payment
to the holders of the indebtedness.
SOURCE: IC 20-4-16-1; (04)IN1312.1.218. -->
SECTION 218. IC 20-4-16-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. As used in this
chapter, the following terms shall have the following meanings:
(a) "City" or "town" shall be a city or town which conducts its
school as school city or school town or as part of a consolidated or
metropolitan school corporation.
(b) "Annexing school corporation" shall be the school corporation
of any city or town which annexes territory.
(c) "Original school corporation" shall be a school corporation from
whom territory is annexed.
(d) "Annexed territory" shall be the territory annexed from an
original school corporation by such city or town.
(e) "Tax receipts" shall be the amounts received from the property
tax levy for the tuition and special school funds levies or the local
income tax for education by the original school corporation from the
annexed territory.
SOURCE: IC 20-4-56-1; (04)IN1312.1.219. -->
SECTION 219. IC 20-4-56-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. Whenever, in the
judgment of a school trustee, or a board of school trustees, of any
school corporation in this state lying adjacent to a school corporation
of another state, the best interests of the public schools can be
promoted by purchasing school grounds, repairing or erecting a
schoolhouse or schoolhouses, and maintaining a school jointly between
the two (2) adjacent school corporations, the school trustee or school
trustees of the school corporation of this state so situated are hereby
empowered to enter into an agreement with the school authorities of
said adjacent school corporation for the purpose of purchasing school
grounds, repairing or constructing school building or buildings,
purchasing school furniture, equipment, appliances, fuel, employing
teachers and maintaining a school when, in the judgment of said school
trustee or trustees of this state, the best interests of the public school
can be promoted by so doing, and such trustee or trustees of this state
are hereby empowered to levy or impose taxes authorized by law and
perform such other duties in maintaining such joint school as are
otherwise provided by law for maintaining the public schools in this
state. In carrying out the provisions of this section, the school
corporation shall pay such proportion of the cost of purchasing school
grounds, repairing or erecting new building or buildings, and in
maintaining the joint school, as shall seem to be equitable and just, in
the judgment of the school trustees of the two (2) adjacent school
corporations.
SOURCE: IC 20-4-57-5; (04)IN1312.1.220. -->
SECTION 220. IC 20-4-57-5, AS ADDED BY P.L.178-2002,
SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 5. (a) An annexing corporation may file a petition
of appeal with the department of local government finance for
emergency financial relief before January 1, 2005.
(b) The annexing corporation shall serve the petition on the
following:
(1) The department.
(2) The township.
(3) The township school.
(4) Any other annexing corporation that annexed the township
school on the same date.
(c) All annexing corporations are parties to the petition.
SOURCE: IC 20-4-57-6; (04)IN1312.1.221. -->
SECTION 221. IC 20-4-57-6, AS ADDED BY P.L.178-2002,
SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 6. If the department of local government finance
receives a petition of appeal under section 5 of this chapter, the
department of local government finance shall submit the petition to the
school property tax control board (terminated January 1, 2005)
established under IC 6-1.1-19-4.1 (repealed January 1, 2005) for a
fact finding hearing.
SOURCE: IC 20-4-57-7; (04)IN1312.1.222. -->
SECTION 222. IC 20-4-57-7, AS ADDED BY P.L.178-2002,
SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 7. (a) If the department of local government
finance submits a petition to the school property tax control board
(terminated January 1, 2005) under section 5 of this chapter, the
school property tax control board shall hold a fact finding hearing.
(b) At a hearing described in subsection (a), the school property tax
control board shall determine the following:
(1) Whether the township school has made all payments required
by any statute, including the following:
(A) P.L.32-1999.
(B) IC 20-4-4-7 and IC 20-4-16-3.
(C) The resolution or plan of annexation of the township
school, including:
(i) any amendment to the resolution or plan;
(ii) any supporting or related documents; and
(iii) any agreement between the township school and an
annexing corporation relating to the winding up of affairs of
the township school.
(2) The amount, if any, by which the township school is in arrears
on any payment described in subdivision (1).
(3) Whether the township school has filed with the department all
reports concerning the affairs of the township school, including
all transfer tuition reports required for the two (2) school years
immediately preceding the date on which the township school was
annexed.
(c) In determining the amount of arrears under subsection (b)(2), the
school property tax control board shall consider all amounts due to an
annexing corporation, including the following:
(1) Any transfer tuition payments due to the annexing corporation.
(2) All levies, excise tax distributions, and state distributions
received by the township school and due to the annexing
corporation, including levies and distributions received by the
township school after the date on which the township school was
annexed.
(3) All excessive levies that the township school agreed to impose
and pay to an annexing corporation but failed to impose.
(d) If, in a hearing under this section, a school property tax control
board determines that a township school has:
(1) under subsection (b)(1), failed to make a required payment; or
(2) under subsection (b)(3), failed to file a required report;
the department may act under section 8 of this chapter.
SOURCE: IC 20-4-57-8; (04)IN1312.1.223. -->
SECTION 223. IC 20-4-57-8, AS ADDED BY P.L.178-2002,
SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 8. (a) If a school property tax control board
(terminated January 1, 2005) makes a determination under section
7(d) of this chapter, the department:
(1) may prohibit a township from:
(A) acquiring real estate;
(B) making a lease or incurring any other contractual
obligation calling for an annual outlay by the township
exceeding ten thousand dollars ($10,000);
(C) purchasing personal property for a consideration greater
than ten thousand dollars ($10,000); and
(D) adopting or advertising a budget, tax levy, or tax rate for
any calendar year;
until the township school has made all required payments under
section 7(b)(1) of this chapter and filed all required reports under
section 7(b)(3) of this chapter; and
(2) shall certify to the treasurer of state the amount of arrears
determined under section 7(b)(3) of this chapter.
(b) Upon being notified of the amount of arrears certified under
subsection (a)(2), the treasurer of state shall make payments from the
funds of state to the extent, but not in excess, of any amounts
appropriated by the general assembly for distribution to the township
school, deducting the payments from any amount distributed to the
township school.
SOURCE: IC 20-4-57-9; (04)IN1312.1.224. -->
SECTION 224. IC 20-4-57-9, AS ADDED BY P.L.178-2002,
SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 9. The department may not grant permission to a
township school or a township to impose an excess levy to satisfy its
obligations under this chapter.
SOURCE: IC 20-5-1-3; (04)IN1312.1.225. -->
SECTION 225. IC 20-5-1-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. As used in
IC 20-5-1 through IC 20-5-6, the following terms shall have the
following meanings:
(a) "School corporation" shall mean any local public school
corporation established under the laws of the state of Indiana, including
but not limited to school cities, school towns, metropolitan school
districts, consolidated school corporations, county school corporations,
community school corporations, and united school corporations,
excluding, however, and school townships.
(b) "Governing body" shall mean the board of commissioners
charged by law with the responsibility of administering the affairs of a
school corporation, including but not limited to a board of school
commissioners, metropolitan board of education, board of school
trustees, or board of trustees, and "member" shall mean a member of
such governing body.
(c) "School purposes" shall mean the general purposes and powers
provided in IC 20-5-2-1.2 and IC 20-5-2-2. However, the delineation
of a specific power in IC 20-5-2-2 shall not be construed as a limitation
on the general powers and purposes set out in IC 20-5-2-1.2.
SOURCE: IC 20-5-1.5-7; (04)IN1312.1.226. -->
SECTION 226. IC 20-5-1.5-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 7. A school corporation
does not have any of the following powers:
(1) Those powers expressly prohibited of a unit under
IC 36-1-3-8.
(2) The power for eminent domain, unless specifically authorized
by statute.
(3) The power to prescribe a civil penalty or a fine.
(4) The power to adopt ordinances.
(5) The power to require the attendance of witnesses and the
production of documents relative to matters being considered,
unless specifically authorized by statute.
(6) The power to exercise powers outside of the boundaries of the
school corporation, unless authorized by statute through joint
agreements or otherwise.
(7) The power to impose an ad valorem property tax levy for
property taxes first due and payable after December 31, 2005.
SOURCE: IC 20-5-2-2; (04)IN1312.1.227. -->
SECTION 227. IC 20-5-2-2, AS AMENDED BY P.L.286-2001,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 2. In carrying out the school purposes of each
school corporation, its governing body acting on its behalf shall have
the following specific powers:
(1) In the name of the school corporation, to sue and be sued and
to enter into contracts in matters permitted by applicable law.
(2) To take charge of, manage, and conduct the educational affairs
of the school corporation and to establish, locate, and provide the
necessary schools, school libraries, other libraries where
permitted by law, other buildings, facilities, property, and
equipment therefor.
(2.5) To appropriate
from the general fund an amount, not to
exceed the greater of three thousand dollars ($3,000) per budget
year or one dollar ($1) per pupil, not to exceed twelve thousand
five hundred dollars ($12,500), based upon the school
corporation's previous year's average daily membership (as
defined in IC 21-3-1.6-1.1) for the purpose of promoting the best
interests of the school corporation by:
(A) the purchase of meals, decorations, memorabilia, or
awards;
(B) provision for expenses incurred in interviewing job
applicants; or
(C) developing relations with other governmental units.
(3) To acquire, construct, erect, maintain, hold, and to contract for
such construction, erection, or maintenance of such real estate,
real estate improvements, or any interest in either, as the
governing body deems necessary for school purposes, including
but not limited to buildings, parts of buildings, additions to
buildings, rooms, gymnasiums, auditoriums, playgrounds, playing
and athletic fields, facilities for physical training, buildings for
administrative, office, warehouse, repair activities, or housing of
school owned buses, landscaping, walks, drives, parking areas,
roadways, easements and facilities for power, sewer, water,
roadway, access, storm and surface water, drinking water, gas,
electricity, other utilities and similar purposes, by purchase, either
outright for cash (or under conditional sales or purchases money
contracts providing for a retention of a security interest by seller
until payment is made or by notes where such contract, security
retention, or note is permitted by applicable law), by exchange, by
gift, by devise, by eminent domain, by lease with or without
option to purchase, or by lease under IC 21-5-10, IC 21-5-11, or
IC 21-5-12. To repair, remodel, remove, or demolish any such real
estate, real estate improvements, or interest in either, as the
governing body deems necessary for school purposes, and to
contract therefor. To provide for energy conservation measures
through utility energy efficiency programs or under a guaranteed
energy savings contract as described in IC 36-1-12.5.
(4) To acquire such personal property or any interest therein as
the governing body deems necessary for school purposes,
including but not limited to buses, motor vehicles, equipment,
apparatus, appliances, books, furniture, and supplies, either by
outright purchase for cash, or under conditional sales or purchase
money contracts providing for a security interest by the seller
until payment is made or by notes where such contract, security,
retention, or note is permitted by applicable law, by gift, by
devise, by loan, or by lease with or without option to purchase and
to repair, remodel, remove, relocate, and demolish such personal
property. All purchases and contracts delineated under the powers
given under subdivision (3) and this subdivision shall be subject
solely to applicable law relating to purchases and contracting by
municipal corporations in general and to the supervisory control
of agencies of the state as provided in section 3 of this chapter.
(5) To sell or exchange any of such real or personal property or
interest therein, which in the opinion of the governing body is not
necessary for school purposes, in accordance with IC 20-5-5, to
demolish or otherwise dispose of such property if, in the opinion
of the governing body, it is not necessary for school purposes and
is worthless, and to pay the expenses for such demolition or
disposition.
(6) To lease any school property for a rental which the governing
body deems reasonable or to permit the free use of school
property for:
(A) civic or public purposes; or
(B) the operation of a school age child care program for
children aged five (5) through fourteen (14) years that operates
before or after the school day, or both, and during periods
when school is not in session;
if the property is not needed for school purposes. Under this
subdivision, the governing body may enter into a long term lease
with a nonprofit corporation, community service organization, or
other governmental entity, if the corporation, organization, or
other governmental entity will use the property to be leased for
civic or public purposes or for a school age child care program.
However, if the property subject to a long term lease is being paid
for from money in the school corporation's debt service fund, then
all proceeds from the long term lease shall be deposited in that
school corporation's debt service fund so long as the property has
not been paid for. The governing body may, at its option, use the
procedure specified in IC 36-1-11-10 in leasing property under
this subdivision.
(7) To employ, contract for, and discharge superintendents,
supervisors, principals, teachers, librarians, athletic coaches
(whether or not they are otherwise employed by the school
corporation and whether or not they are licensed under
IC 20-6.1-3), business managers, superintendents of buildings and
grounds, janitors, engineers, architects, physicians, dentists,
nurses, accountants, teacher aides performing noninstructional
duties, educational and other professional consultants, data
processing and computer service for school purposes, including
but not limited to the making of schedules, the keeping and
analyzing of grades and other student data, the keeping and
preparing of warrants, payroll, and similar data where approved
by the state board of accounts as provided below, and such other
personnel or services, all as the governing body considers
necessary for school purposes. To fix and pay the salaries and
compensation of such persons and such services. To classify such
persons or services and to adopt schedules of salaries or
compensation. To determine the number of such persons or the
amount of services thus employed or contracted for. To determine
the nature and extent of their duties. The compensation, terms of
employment, and discharge of teachers shall, however, be subject
to and governed by the laws relating to employment, contracting,
compensation, and discharge of teachers. The compensation,
terms of employment, and discharge of bus drivers shall be
subject to and shall be governed by any laws relating to
employment, contracting, compensation, and discharge of bus
drivers. The forms and procedures relating to the use of computer
and data processing equipment in handling the financial affairs of
such school corporation shall be submitted to the state board of
accounts for approval to the end that such services shall be used
by the school corporation when the governing body determines
that it is in the best interests of the school corporation while at the
same time providing reasonable accountability for the funds
expended.
(8) Notwithstanding the appropriation limitation in subdivision
(2.5), when the governing body by resolution deems a trip by an
employee of the school corporation or by a member of the
governing body to be in the interest of the school corporation,
including but not limited to attending meetings, conferences, or
examining equipment, buildings, and installation in other areas,
to permit such employee to be absent in connection with such trip
without any loss in pay and to refund to such employee or to such
member his reasonable hotel and board bills and necessary
transportation expenses. To pay teaching personnel for time spent
in sponsoring and working with school related trips or activities.
(9) To transport children to and from school, when in the opinion
of the governing body such transportation is necessary, including
but not limited to considerations for the safety of such children
and without regard to the distance they live from the school, such
transportation to be otherwise in accordance with the laws
applicable thereto.
(10) To provide a lunch program for a part or all of the students
attending the schools of the school corporation, including but not
limited to the establishment of kitchens, kitchen facilities, kitchen
equipment, lunch rooms, the hiring of the necessary personnel to
operate such program, and the purchase of any material and
supplies therefor, charging students for the operational costs of
such lunch program, fixing the price per meal or per food item. To
operate such lunch program as an extracurricular activity, subject
to the supervision of the governing body. To participate in any
surplus commodity or lunch aid program.
(11) To purchase textbooks, to furnish them without cost or to
rent them to students, to participate in any textbook aid program,
all in accordance with applicable law.
(12) To accept students transferred from other school corporations
and to transfer students to other school corporations in accordance
with applicable law.
(13) To levy or impose taxes authorized by law, to make
budgets, to appropriate funds, and to disburse the money of the
school corporation in accordance with the laws applicable thereto.
To borrow money against current tax collections and otherwise to
borrow money, in accordance with IC 20-5-4.
(14) To purchase insurance or to establish and maintain a
program of self-insurance relating to the liability of the school
corporation or its employees in connection with motor vehicles or
property and for any additional coverage to the extent permitted
and in accordance with IC 34-13-3-20. To purchase additional
insurance or to establish and maintain a program of self-insurance
protecting the school corporation and members of the governing
body, employees, contractors, or agents of the school corporation
from any liability, risk, accident, or loss related to any school
property, school contract, school or school related activity,
including but not limited to the purchase of insurance or the
establishment and maintenance of a self-insurance program
protecting such persons against false imprisonment, false arrest,
libel, or slander for acts committed in the course of their
employment, protecting the school corporation for fire and
extended coverage and other casualty risks to the extent of
replacement cost, loss of use, and other insurable risks relating to
any property owned, leased, or held by the school corporation. To:
(A) participate in a state employee health plan under
IC 5-10-8-6.6;
(B) purchase insurance; or
(C) establish and maintain a program of self-insurance;
to benefit school corporation employees, which may include
accident, sickness, health, or dental coverage, provided that any
plan of self-insurance shall include an aggregate stop-loss
provision.
(15) To make all applications, to enter into all contracts, and to
sign all documents necessary for the receipt of aid, money, or
property from the state government, the federal government, or
from any other source.
(16) To defend any member of the governing body or any
employee of the school corporation in any suit arising out of the
performance of his duties for or employment with, the school
corporation, provided the governing body by resolution
determined that such action was taken in good faith. To save any
such member or employee harmless from any liability, cost, or
damage in connection therewith, including but not limited to the
payment of any legal fees, except where such liability, cost, or
damage is predicated on or arises out of the bad faith of such
member or employee, or is a claim or judgment based on his
malfeasance in office or employment.
(17) To prepare, make, enforce, amend, or repeal rules,
regulations, and procedures for the government and management
of the schools, property, facilities, and activities of the school
corporation, its agents, employees, and pupils and for the
operation of its governing body, which rules, regulations, and
procedures may be designated by any appropriate title such as
"policy handbook", "bylaws", or "rules and regulations".
(18) To ratify and approve any action taken by any member of the
governing body, any officer of the governing body, or by any
employee of the school corporation after such action is taken, if
such action could have been approved in advance, and in
connection therewith to pay any expense or compensation
permitted under IC 20-5-1 through IC 20-5-6 or any other law.
(19) To exercise any other power and make any expenditure in
carrying out its general powers and purposes provided in this
chapter or in carrying out the powers delineated in this section
which is reasonable from a business or educational standpoint in
carrying out school purposes of the school corporation, including
but not limited to the acquisition of property or the employment
or contracting for services, even though such power or
expenditure shall not be specifically set out herein. The specific
powers set out in this section shall not be construed to limit the
general grant of powers provided in this chapter except where a
limitation is set out in IC 20-5-1 through IC 20-5-6 by specific
language or by reference to other law.
SOURCE: IC 20-5-2.5-2; (04)IN1312.1.228. -->
SECTION 228. IC 20-5-2.5-2, AS ADDED BY P.L.232-1999,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 2. Subject to IC 20-5-2-2(14) and IC 21-2-5.6
(repealed January 1, 2005) and notwithstanding any other law, any
self-insurance program must comply with this chapter.
SOURCE: IC 20-5-2.5-4; (04)IN1312.1.229. -->
SECTION 229. IC 20-5-2.5-4, AS AMENDED BY P.L.14-2000,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 4. (a) A self-insurance program must be written
on an incurred claims basis.
(b) The governing body must fund a self-insurance program as
described in IC 21-2-5.6-1(2)
(repealed January 1, 2005) to
include
provide health care services (as defined in IC 27-8-11-1) coverage
for all eligible incurred claims.
(c)
Subject to IC 21-2-5.6 and Notwithstanding any other law:
(1) contributions made on behalf of individuals covered under the
self-insurance program, including employee and employer
contributions; and
(2) transfers or allocations of funds by a governing body;
for coverage for health care services under a self-insurance program
must be directly deposited into
the self-insurance a separate fund
established under IC 21-2-5.6-1(2) or account and may not be
transferred to other accounts or expended for any other purpose.
(d) The separate fund or account may be used to provide money
for the following purposes:
(1) The payment of any judgment rendered against the school
corporation or any officer or employee of the school
corporation for which the school corporation is liable under
IC 34-13-2, IC 34-13-3, or IC 34-13-4 (or IC 34-4-16.5,
IC 34-4-16.6, or IC 34-4-16.7 before their repeal).
(2) The payment of any claim or settlement for which the
school corporation is liable under IC 34-13-2, IC 34-13-3, or
IC 34-13-4 (or IC 34-4-16.5, IC 34-4-16.6, or IC 34-4-16.7
before their repeal).
(3) The payment of any premium, management fee, claim, or
settlement for which the school corporation is liable under
any federal or state statute including but not limited to
payments under IC 22-3 and IC 22-4.
(4) The payment of any settlement or claim for which
insurance coverage is permitted under IC 20-5-2-2(14).
(e) Any balance remaining in the separate fund or account at the
end of any fiscal year must carry over in the fund for the following
year, and must not revert to the general fund.
SOURCE: IC 20-5-4-5; (04)IN1312.1.230. -->
SECTION 230. IC 20-5-4-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 5. The governing body
shall provide for the payment of principal and interest of such bonds by
levying or imposing annually a tax authorized by law sufficient to
pay the principal and interest as they shall become due. The bodies
charged with the review of budgets and tax levies shall review such
levy for principal and interest to ascertain that such levy is sufficient
for such purposes.
SOURCE: IC 20-5-4-6; (04)IN1312.1.231. -->
SECTION 231. IC 20-5-4-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 6. If the governing
board shall find, by written resolution, that an emergency exists which
requires the expenditure of any money for any lawful corporate purpose
which was not included in its existing budget and tax levy or rate, it
may authorize the making of an emergency loan which may be
evidenced by the issuance of its note or notes in the same manner and
subject to the same procedure and restrictions as provided for the
issuance of its bonds, except as to purpose. At the time for making the
next annual budget and tax levy for such school corporation, the
governing body shall make a levy (before January 1, 2005) or a
distribution of local income taxes for education (after December
31, 2005) to the credit of the fund for which such expenditure is made
sufficient to pay such debt and the interest thereon; however, the
interest on the loan may be paid from the debt service fund.
SOURCE: IC 20-5-4-7; (04)IN1312.1.232. -->
SECTION 232. IC 20-5-4-7, AS AMENDED BY P.L.90-2002,
SECTION 406, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 7. The provisions of all general
statutes and rules relating to filing of petitions requesting the issuance
of bonds and giving notice thereof, giving notice of determination to
issue bonds, giving notice of a hearing on the appropriation of the
proceeds of the bonds and the right of taxpayers to appear and be heard
on the proposed appropriation, the approval of the appropriation by the
department of local government finance
(if applicable), and the right
of taxpayers to remonstrate against the issuance of bonds shall be
applicable to proceedings for the issuance of bonds and the making of
an emergency loan under IC 20-5-1 through IC 20-5-6. No action to
contest the validity of such bonds or emergency loans shall be brought
later than five (5) days after the acceptance of a bid for the sale thereof.
SOURCE: IC 20-5-4-8; (04)IN1312.1.233. -->
SECTION 233. IC 20-5-4-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 8. (a) Whenever the
governing board of a school corporation finds and declares that an
emergency exists for the borrowing of money with which to pay current
expenses from a particular fund before the receipt of revenues from
taxes levied
or imposed or state tuition support distributions for such
fund, the governing board may issue warrants in anticipation of the
receipt of said revenues.
(b) The principal of these warrants shall be payable solely from the
fund for which the taxes are levied or from the general fund in the case
of anticipated state tuition support distributions. However, the interest
on these warrants may be paid from the debt service fund, from the
fund for which the taxes are levied, or the general fund in the case of
anticipated state tuition support distributions.
(c) The amount of principal of temporary loans maturing on or
before June 30 for any fund shall not exceed eighty percent (80%) of
the amount of taxes and state tuition support distributions estimated to
be collected or received for and distributed to the fund at the June
settlement.
(d) The amount of principal of temporary loans maturing after June
30, and on or before December 31, shall not exceed eighty percent
(80%) of the amount of taxes and state tuition support distributions
estimated to be collected or received for and distributed to the fund at
the December settlement.
(e) At each settlement, the amount of taxes and state tuition support
distributions estimated to be collected or received for and distributed
to the fund includes any allocations to the fund from the property tax
replacement fund.
(f) The estimated amount of taxes and state tuition support
distributions to be collected or received and distributed shall be made
by the county auditor or the auditor's deputy. The warrants evidencing
any loan in anticipation of tax revenue or state tuition support
distributions shall not be delivered to the purchaser of the warrant nor
payment made on the warrant before January 1 of the year the loan is
to be repaid. However, the proceedings necessary to the loan may be
held and carried out before January 1 and before the approval. The loan
may be made even though a part of the last preceding June or
December settlement has not yet been received.
(g) Proceedings for the issuance and sale of warrants for more than
one (1) fund may be combined, but separate warrants for each fund
shall be issued and each warrant shall state on its face the fund from
which its principal is payable. No action to contest the validity of such
warrants shall be brought later than fifteen (15) days from the first
publication of notice of sale.
(h) No issue of tax or state tuition support anticipation warrants
shall be made if the aggregate of all these warrants exceed twenty
thousand dollars ($20,000) until the issuance is advertised for sale, bids
received, and an award made by the governing board as required for the
sale of bonds, except that the sale notice need not be published outside
of the county nor more than ten (10) days before the date of sale.
SOURCE: IC 20-5-4-10; (04)IN1312.1.234. -->
SECTION 234. IC 20-5-4-10, AS AMENDED BY P.L.90-2002,
SECTION 407, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 10.
(1) (a) This subsection applies
only to the extent that a school corporation is authorized to impose
a property tax levy before January 1, 2005. Prior to the end of each
calendar year the department of local government finance shall review
the bond and lease rental levies, or any levies which replace such
levies, of each school corporation, payable in the next succeeding year,
and the appropriations from such levies from which the school
corporation is to pay the amount, if any, of principal and interest on its
general obligation bonds and of its lease rentals under IC 21-5-11
through IC 21-5-12, during such succeeding year (such amounts being
referred to in this section as its "debt service obligations"). In the event
such levies and appropriations of the school corporation are not
sufficient to pay the debt service obligations, the department of local
government finance shall establish for each school corporation bond
and lease, rental levies, or any levies which replace such levies and
appropriations which are sufficient to pay such debt service
obligations.
(2) (b) Upon the failure of any school corporation to pay any of its
debt service obligations during any calendar year when due, the
treasurer of state upon being notified of such failure by any claimant
shall make such payment from the funds of the state to the extent, but
not in excess, of any amounts appropriated by the general assembly for
the calendar year for distribution to such school corporation from state
funds, deducting such payment from such amounts thus appropriated.
Such deducting being made, first from property tax relief funds to the
extent thereof, second from all other funds except tuition support and
third from tuition support.
(3) (c) This section shall be interpreted liberally so that the state of
Indiana shall to the extent legally valid ensure that the debt service
obligations of each school corporation shall be paid, but nothing
contained in this section shall be construed to create a debt of the state
of Indiana.
SECTION 235. IC 20-5-6-10, AS ADDED BY P.L.45-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 10. (a) The governing body of a school
corporation may donate the proceeds of a grant, a gift, a donation, an
endowment, a bequest, a trust, or an agreement to share tax revenue
received by a city or county under IC 4-33-12-6 or IC 4-33-13, or other
funds not generated from taxes levied or imposed by the school
corporation, to a foundation under the following conditions:
(1) The foundation is a charitable nonprofit community
foundation.
(2) The foundation retains all rights to the donation, including
investment powers, except as provided in subdivision (3).
(3) The foundation agrees to do the following:
(A) Hold the donation as a permanent endowment.
(B) Distribute the income from the donation only to the school
corporation as directed by resolution of the governing body of
the school corporation.
(C) Return the donation to the general fund of the school
corporation if the foundation:
(i) loses the foundation's status as a public charitable
organization;
(ii) is liquidated; or
(iii) violates any condition of the endowment set by the
governing body of the school corporation.
(b) A school corporation may use income received under this
section from a community foundation only for purposes of the school
corporation.
SOURCE: IC 20-5-13-9; (04)IN1312.1.236. -->
SECTION 236. IC 20-5-13-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 9. (a) All school cities,
school townships, school towns, and joint districts are hereby
authorized to establish, equip, operate, and maintain school kitchens
and school lunch rooms, for the improvement of the health of the
school children attending school therein, and for the advancement of
the educational work of their respective schools; to employ all
necessary directors, assistants, and agents; and appropriate funds of
such school corporations for such purpose. Such participation in a
school lunch program pursuant to the provisions of this chapter shall
be discretionary with the governing board of any school corporation.
(b) In the event that federal funds are not available for the purpose
of carrying on a school lunch program, the state of Indiana shall not
participate in such school lunch program and any money appropriated
by the state of Indiana for such purpose, and not expended, shall
immediately revert to the state general fund. Failure on the part of the
state of Indiana to participate in the school lunch program shall not
invalidate any appropriation made or school lunch program carried on
by any school corporation by means of gifts or money raised by tax levy
pursuant to the provisions of this chapter revenues for the purpose of
such school lunch program.
SOURCE: IC 20-5-15-1; (04)IN1312.1.237. -->
SECTION 237. IC 20-5-15-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. In all the cities and
incorporated towns of this state, the board of school trustees, board of
school commissioners, or whatever board may be established by law to
take charge of the public or common schools of said city or
incorporated town, shall have power, if, in their discretion, they deem
it to the public interest, to establish a free public library in connection
with the common schools of said city or incorporated town, and to
make such rules and regulations for the care and protection and
government of such library and for the care of the books provided
therefor, and for the taking from and returning to said library of such
books as the said board may deem necessary and proper, and to provide
penalties for the violation thereof. However, in any city or incorporated
town where there is already established a library open to all the people,
no tax shall be levied for the purpose herein named. This section does
not authorize a school corporation to impose a property tax after
December 31, 2005.
SOURCE: IC 20-5-15-2; (04)IN1312.1.238. -->
SECTION 238. IC 20-5-15-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 2. Such board shall also
have power to levy a tax of not exceeding one (1) mill on each dollar
of taxable property assessed for taxation in such city in each year;
which tax shall be placed on the tax duplicate of such city, and
collected in the same manner as other taxes; and when said taxes are
so collected, they shall be paid over to the said board for the support
and maintenance of said public library. Such board shall have power,
and it shall be its duty, to disburse said fund, and all revenues derived
from gift or devise, in providing and fitting up suitable rooms for such
library, in the purchase, care and binding of books therefor, and in the
payment of salaries to a librarian and necessary assistants. This section
expires January 1, 2005.
SOURCE: IC 20-5-17.5-2; (04)IN1312.1.239. -->
SECTION 239. IC 20-5-17.5-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 2. (a) This subsection
does not apply to a school corporation in a county having a population
of more than two hundred thousand (200,000) but less than three
hundred thousand (300,000). The governing body of a school
corporation may annually appropriate, from its general fund, a sum of
not more than five-tenths of one cent ($0.005) on each one hundred
dollars ($100) of assessed valuation in the school corporation to be
paid to a historical society, subject to subsection (c). This subsection
does not authorize a school corporation to impose a property tax
after December 31, 2005.
(b) This subsection applies only to a school corporation in a county
having a population of more than two hundred thousand (200,000) but
less than three hundred thousand (300,000). To provide funding for a
historical society under this section, the governing body of a school
corporation may before January 1, 2005, only impose a tax of not
more than five-tenths of one cent ($0.005) on each one hundred dollars
($100) of assessed valuation in the school corporation. This tax is not
subject to the tax levy limitations imposed on the school corporation by
IC 6-1.1-19-1.5 (repealed January 1, 2005) or the provisions of
IC 21-2-11-8 (repealed January 1, 2005). The school corporation
shall deposit the proceeds of the tax in a fund to be known as the
historical society fund. The historical society fund is separate and
distinct from the school corporation's general fund and may be used
only for the purpose of providing funds for a historical society under
this section. Subject to subsection (c), the governing body of the school
corporation may annually appropriate the money in the fund to be paid
in semiannual installments to a historical society having facilities in the
county.
(c) Before a historical society may receive payments under this
section, its governing board must adopt a resolution that entitles:
(1) the governing body of the school corporation to appoint its
superintendent and one (1) of its history teachers as visitors, with
the privilege of attending all meetings of the society's governing
board;
(2) the governing body of the school corporation to nominate two
(2) persons for membership on the society's governing board;
(3) the school corporation to use any of the society's facilities and
equipment for educational purposes consistent with the society's
purposes;
(4) the students and teachers of the school corporation to tour the
society's museum, if any, free of charge; and
(5) the school corporation to borrow artifacts from the society's
collection, if any, for temporary exhibit in the schools.
SOURCE: IC 20-5-17.5-3; (04)IN1312.1.240. -->
SECTION 240. IC 20-5-17.5-3, AS AMENDED BY P.L.170-2002,
SECTION 120, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 3. (a) This section applies to school
corporations in a county containing a city having a population of:
(1) more than one hundred fifty thousand (150,000) but less than
five hundred thousand (500,000);
(2) more than one hundred twenty thousand (120,000) but less
than one hundred fifty thousand (150,000);
(3) more than ninety thousand (90,000) but less than one hundred
five thousand (105,000);
(4) more than one hundred five thousand (105,000) but less than
one hundred twenty thousand (120,000); or
(5) more than seventy-five thousand (75,000) but less than ninety
thousand (90,000).
(b) In order to provide funding for an art association under this
section, the governing body of a school corporation may before
January 1, 2005, only impose a tax of not more than five-tenths of one
cent ($0.005) on each one hundred dollars ($100) of assessed valuation
in the school corporation. This tax is not subject to the tax levy
limitations imposed on the school corporation by IC 6-1.1-19-1.5
(repealed January 1, 2005) or the provisions of IC 21-2-11-8
(repealed January 1, 2005).
(c) The school corporation shall deposit the proceeds of the tax
imposed under subsection (b) in a fund to be known as the art
association fund. The art association fund is separate and distinct from
the school corporation's general fund and may be used only for the
purpose of providing funds for an art association under this section.
The governing body of the school corporation may annually
appropriate the money in the fund to be paid in semiannual installments
to an art association having facilities in a city that is listed in subsection
(a), subject to subsection (d).
(d) Before an art association may receive payments under this
section, its governing board must adopt a resolution that entitles:
(1) the governing body of the school corporation to appoint its
superintendent and its director of art instruction as visitors, with
the privilege of attending all meetings of the association's
governing board;
(2) the governing body of the school corporation to nominate
persons for membership on the association's governing board,
with at least two (2) of the nominees to be elected;
(3) the school corporation to use any of the association's facilities
and equipment for educational purposes consistent with the
association's purposes;
(4) the students and teachers of the school corporation to tour the
association's museum and galleries free of charge;
(5) the school corporation to borrow materials from the
association for temporary exhibit in the schools;
(6) the teachers of the school corporation to receive normal
instruction in the fine and applied arts at half the regular rates
charged by the association; and
(7) the school corporation to expect such exhibits in the
association's museum as will supplement the work of the students
and teachers of the corporation.
A copy of the resolution, certified by the president and secretary of the
association, must be filed in the office of the school corporation before
payments may be received.
(e) A resolution filed under subsection (d) need not be renewed
from year to year but continues in effect until rescinded. An art
association that complies with this section is entitled to continue to
receive payments under this section as long as it so complies.
(f) Whenever more than one (1) art association in a city that is listed
in subsection (a) qualifies to receive payments under this section, the
governing body of the school corporation shall select the one (1) art
association best qualified to perform the services described by
subsection (c). A school corporation may select only one (1) art
association to receive payments under this section.
SOURCE: IC 20-5-28-1; (04)IN1312.1.241. -->
SECTION 241. IC 20-5-28-1, AS AMENDED BY P.L.90-2002,
SECTION 408, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 1. (a) A school corporation in
Indiana may purchase buildings, lands, or lands and buildings for
school purposes, and for that purpose improve the buildings or land.
(b) An existing building, other than a building obtained under
IC 5-17-2 (before its repeal) or IC 4-13-1.7, permitting the purchase of
suitable surplus government buildings, may not be purchased for use
as a school building unless the building was originally constructed for
use by the school corporation and used for that purpose for a period of
five (5) years or more next preceding the acquisition as provided in this
chapter.
(c) Notwithstanding any provisions in this chapter limiting the
purchase of school buildings, a school corporation may purchase
suitable buildings, lands, or lands and suitable buildings adjacent to
school property for school purposes, and for that purpose improve the
buildings or land after giving notice to the taxpayers of the intention of
the school corporation to purchase. The taxpayers of the school
corporation have the same right of appeal to the department of local
government finance under the same procedure as provided for in
IC 6-1.1-20-5 through IC 6-1.1-20-6.
SOURCE: IC 20-5-37-4; (04)IN1312.1.242. -->
SECTION 242. IC 20-5-37-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 4. (a) The board of
school trustees in a third class city may establish, maintain, and equip
public playgrounds to be used by children during the summer vacation
period. The board may use the public school buildings and grounds in
the cities as is necessary to carry out this section. Before January 1,
2005, the board may levy a tax not exceeding sixty-seven hundredths
of one cent ($0.0067) on each one hundred dollars ($100) of assessed
valuation of the property in the city to create a fund to carry out this
section. The board may lease or purchase grounds in addition to the
school grounds, either adjacent to the school grounds or elsewhere in
the city. The board may also, under eminent domain statutes, condemn
ground to be used for these purposes and pay for condemned ground
out of the school revenues of the city not otherwise appropriated.
(b) The board has full control of all playgrounds, including the
preservation of order on them, and may adopt suitable rules,
regulations, and bylaws for the control of them. The board may enforce
the rules by suitable penalties.
(c) The board may select and pay for directors and assistants. The
directors and assistants, while on duty and for the purpose of
preserving order and the observance of the rules, regulations, and
bylaws of the board, have all the powers of police officers of the city.
The compensation for the directors and assistants shall be fixed by the
board and paid for out of the school revenues not otherwise
appropriated.
SOURCE: IC 20-5-62-6; (04)IN1312.1.243. -->
SECTION 243. IC 20-5-62-6, AS AMENDED BY P.L.77-1999,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 6. Except as provided in this chapter and
notwithstanding any other law, a freeway school corporation or a
freeway school may do the following during the contract period:
(1) Disregard the observance of any statute or rule that is listed in
the contract.
(2) Lease school transportation equipment to others for nonschool
use when the equipment is not in use for a school corporation
purpose, if the lessee has not received a bid from a private entity
to provide transportation equipment or services for the same
purpose.
(3) Replace the budget and accounting system that is required by
law with a budget or accounting system that is frequently used in
the private business community. The state board of accounts may
not go beyond the requirements imposed upon the state board of
accounts by statute in reviewing the budget and accounting
system used by a freeway school corporation or a freeway school.
(4) Establish a professional development and technology fund to
be used for:
(A) professional development; or
(B) technology, including video distance learning.
However, any money deposited in the professional development
and technology fund for technology purposes must be transferred
to the school technology fund established under IC 21-2-18
(repealed January 1, 2005).
(5) Subject to subdivision (4), transfer funds obtained from
sources other than state or local government taxation among any
accounts of the school corporation, including a professional
development and technology fund established under subdivision
(4).
(6) Transfer funds obtained from property taxation and from state
distributions money among the general fund (established under
IC 21-2-11) and the school transportation fund (established under
IC 21-2-11.5), subject to the following:
(A) The sum of the property tax rates for the general fund and
the school transportation fund after a transfer occurs under this
subdivision may not exceed the sum of the property tax rates
for the general fund and the school transportation fund before
a transfer occurs under this subdivision.
(B) funds. However this subdivision does not allow a school
corporation to transfer to any other fund money from the:
(i) (A) capital projects fund (established under IC 21-2-15)
(repealed January 1, 2005); or
(ii) (B) debt service fund (established under IC 21-2-4).
(7) Establish a locally adopted assessment program to replace the
assessment of students under the ISTEP program established
under IC 20-10.1-16-8, subject to the following:
(A) A locally adopted assessment program must be established
by the governing body and approved by the department.
(B) A locally adopted assessment program may use a locally
developed test or a nationally developed test.
(C) Results of assessments under a locally adopted assessment
program are subject to the same reporting requirements as
results under the ISTEP program.
(D) Each student who completes a locally adopted assessment
program and the student's parent or guardian has the same
rights to inspection and rescoring as are set forth in
IC 20-10.1-16-7(d).
SOURCE: IC 20-5.5-7-3; (04)IN1312.1.244. -->
SECTION 244. IC 20-5.5-7-3, AS AMENDED BY P.L.1-2004,
SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 3. (a) Not later than the date established by the
department for determining average daily membership under
IC 21-3-1.6-1.1(d), and after May 31, the organizer shall submit to the
department the following information on a form prescribed by the
department:
(1) The number of students enrolled in the charter school.
(2) The name and address of each student.
(3) The name of the school corporation in which the student has
legal settlement.
(4) The name of the school corporation, if any, that the student
attended during the immediately preceding school year.
(5) The grade level in which the student will enroll in the charter
school.
The department shall verify the accuracy of the information reported.
(b) This subsection applies after December 31 of the calendar year
in which a charter school begins its initial operation. The department
shall distribute to the organizer the amount determined under
IC 21-3-1.7 for the charter school. The department shall make a
distribution under this subsection at the same time and in the same
manner as the department makes a distribution under IC 21-3-1.7.
(c) The department shall provide to the department of local
government finance the following information:
(1) For each county, the number of students who:
(A) have legal settlement in the county; and
(B) attend a charter school.
(2) The school corporation in which each student described in
subdivision (1) has legal settlement.
(3) The charter school that a student described in subdivision (1)
attends and the county in which the charter school is located.
(4) The amount determined under IC 6-1.1-19-1.5(f) STEP
EIGHT for 2004 and IC 6-1.1-19-1.5(b) STEP SIX (repealed
January 1, 2005) for 2005 for each school corporation described
in subdivision (2).
(5) The amount determined under STEP TWO of the following
formula:
STEP ONE: Determine the product of:
(A) the amount determined under IC 21-3-1.7-6.7(d) or
IC 21-3-1.7-6.7(e) for a charter school described in
subdivision (3); multiplied by
(B) thirty-five hundredths (0.35).
STEP TWO: Determine the product of:
(A) the STEP ONE amount; multiplied by
(B) the current ADM of a charter school described in
subdivision (3).
(6) The amount determined under STEP THREE of the following
formula:
STEP ONE: Determine the number of students described in
subdivision (1) who:
(A) attend the same charter school; and
(B) have legal settlement in the same school corporation
located in the county.
STEP TWO: Determine the subdivision (5) STEP ONE
amount for a charter school described in STEP ONE (A).
STEP THREE: Determine the product of:
(A) the STEP ONE amount; multiplied by
(B) the STEP TWO amount.
SOURCE: IC 20-5.5-7-3.5; (04)IN1312.1.245. -->
SECTION 245. IC 20-5.5-7-3.5, AS ADDED BY P.L.276-2003,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 3.5. (a) This section applies to a conversion
charter school.
(b) Not later than the date established by the department for
determining average daily membership under IC 21-3-1.6-1.1(d), and
after July 2, the organizer shall submit to a governing body on a form
prescribed by the department the information reported under section
3(a) of this chapter for each student who:
(1) is enrolled in the organizer's conversion charter school; and
(2) has legal settlement in the governing body's school
corporation.
(c) Beginning not more than sixty (60) days after the department
receives the information reported under section 3(a) of this chapter, the
department shall distribute to the organizer:
(1) tuition support and other state funding for any purpose for
students enrolled in the conversion charter school;
(2) a proportionate share of state and federal funds received for
students with disabilities or staff services for students with
disabilities for students with disabilities enrolled in the
conversion charter school; and
(3) a proportionate share of funds received under federal or state
categorical aid programs for students who are eligible for the
federal or state categorical aid and are enrolled in the conversion
charter school;
for the second six (6) months of the calendar year in which the
conversion charter school is established. The department shall make a
distribution under this subsection at the same time and in the same
manner as the department makes a distribution to the governing body
of the school corporation in which the conversion charter school is
located. A distribution to the governing body of the school corporation
in which the conversion charter school is located is reduced by the
amount distributed to the conversion charter school. This subsection
does not apply to a conversion charter school after December 31 of the
calendar year in which the conversion charter school is established.
(d) This subsection applies beginning with the first property tax
distribution described in IC 6-1.1-27-1 to the governing body of the
school corporation in which a conversion charter school is located after
the governing body receives the information reported under subsection
(b). Not more than ten (10) days after the governing body receives a
property tax distribution described in IC 6-1.1-27-1, the governing
body shall distribute to the conversion charter school the amount
determined under STEP THREE of the following formula:
STEP ONE: Determine the quotient of:
(A) the number of students who:
(i) are enrolled in the conversion charter school; and
(ii) were counted in the ADM of the previous year for the
school corporation in which the conversion charter school is
located; divided by
(B) the current ADM of the school corporation in which the
conversion charter school is located.
In determining the number of students enrolled under clause
(A)(i), each kindergarten pupil shall be counted as one-half (1/2)
pupil.
STEP TWO: Determine the total amount of the following
revenues to which the school corporation in which the conversion
charter school is located is entitled for the second six (6) months
of the calendar year in which the conversion charter school is
established:
(A) Revenues obtained by the school corporation's:
(i) general fund property tax levy for years before January
1, 2005, or local income tax for education for years after
December 31, 2005 (excluding amounts devoted to
transportation, capital improvements, or debt service);
and
(ii) excise tax revenue (as defined in IC 21-3-1.7-2).
(B) The school corporation's certified distribution of county
adjusted gross income tax revenue under IC 6-3.5-1.1 that is
to be used as property tax replacement credits.
STEP THREE: Determine the product of:
(A) the STEP ONE amount; multiplied by
(B) the STEP TWO amount.
(e) Subsection (d) does not apply to a conversion charter school
after the later of the following dates:
(1) December 31 of the calendar year in which the conversion
charter school is established.
(2) Ten (10) days after the date on which the governing body of
the school corporation in which the conversion charter school is
located receives the final distribution described in IC 6-1.1-27-1
of revenues to which the school corporation in which the
conversion charter school is located is entitled for the second six
(6) months of the calendar year in which the conversion charter
school is established.
(f) This subsection applies during the second six (6) months of the
calendar year in which a conversion charter school is established. A
conversion charter school may apply for an advance from the charter
school advancement account under IC 20-5.5-7.5 in the amount
determined under STEP FOUR of the following formula:
STEP ONE: Determine the result under subsection (d) STEP
ONE (A).
STEP TWO: Determine the difference between:
(A) the conversion charter school's current ADM; minus
(B) the STEP ONE amount.
STEP THREE: Determine the quotient of:
(A) the STEP TWO amount; divided by
(B) the conversion charter school's current ADM.
STEP FOUR: Determine the product of:
(A) the STEP THREE amount; multiplied by
(B) the quotient of:
(i) the subsection (d) STEP TWO amount; divided by
(ii) two (2).
SOURCE: IC 20-5.5-7-4; (04)IN1312.1.246. -->
SECTION 246. IC 20-5.5-7-4, AS AMENDED BY P.L.276-2003,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 4. (a) Services that a school corporation provides
to a charter school, including transportation, may be provided at not
more than one hundred three percent (103%) of the actual cost of the
services.
(b) This subsection applies to a sponsor that is a state educational
institution described in IC 20-5.5-1-15(1)(B). In a calendar year, a state
educational institution may receive from the organizer of a charter
school sponsored by the state educational institution an administrative
fee equal to not more than three percent (3%) of the total amount the
organizer receives during the calendar year under IC 6-1.1-19-12
(repealed January 1, 2005) and IC 21-3-1.7-8.2.
SOURCE: IC 20-6.1-5-12; (04)IN1312.1.247. -->
SECTION 247. IC 20-6.1-5-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 12. (a) If a governing
body of a school corporation agrees to a retirement, savings, or
severance pay plan with a teacher or with an exclusive representative
pursuant to IC 20-7.5-1, the benefits may be paid to the teacher who is
eligible under a negotiated retirement, savings, or severance pay plan,
or, in the case of the teacher's death, to the teacher's designated
beneficiary or the teacher's estate if there is no designated beneficiary.
Payments may be made in a lump sum or in installments as agreed
upon by the parties or to a savings plan established under
IC 5-10-1.1-1(2).
(b) Notwithstanding IC 6-1.1-20, The payments under this section
shall be made from the general fund of the school corporation and may
be made for a period exceeding one (1) year.
SOURCE: IC 20-8.1-3-17; (04)IN1312.1.248. -->
SECTION 248. IC 20-8.1-3-17, AS AMENDED BY P.L.291-2001,
SECTION 111, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 17. (a) Subject to the specific
exceptions under this chapter, each individual shall attend either a
public school which the individual is entitled to attend under
IC 20-8.1-6.1 or some other school which is taught in the English
language.
(b) An individual is bound by the requirements of this chapter from
the earlier of the date on which the individual officially enrolls in a
school or, except as provided in subsection (h), the beginning of the fall
school term for the school year in which the individual becomes seven
(7) years of age until the date on which the individual:
(1) graduates;
(2) reaches at least sixteen (16) years of age but who is less than
eighteen (18) years of age and the requirements under subsection
(j) concerning an exit interview are met enabling the individual to
withdraw from school before graduation; or
(3) reaches at least eighteen (18) years of age;
whichever occurs first.
(c) An individual who:
(1) enrolls in school before the fall school term for the school year
in which the individual becomes seven (7) years of age; and
(2) is withdrawn from school before the school year described in
subdivision (1) occurs;
is not subject to the requirements of this chapter until the individual is
reenrolled as required in subsection (b). Nothing in this section shall
be construed to require that a child complete grade 1 before the child
reaches eight (8) years of age.
(d) An individual for whom education is compulsory under this
section shall attend school each year:
(1) for the number of days public schools are in session in the
school corporation in which the individual is enrolled in Indiana;
or
(2) if the individual is enrolled outside Indiana, for the number of
days the public schools are in session where the individual is
enrolled.
(e) In addition to the requirements of subsections (a) through (d), an
individual must be at least five (5) years of age on July 1 of the
2001-2002 school year or any subsequent school year;
to officially enroll in a kindergarten program offered by a school
corporation. However, subject to subsection (g), the governing body of
the school corporation shall adopt a procedure affording a parent of an
individual who does not meet the minimum age requirement set forth
in this subsection the right to appeal to the superintendent of the school
corporation for enrollment of the individual in kindergarten at an age
earlier than the age that is set forth in this subsection.
(f) In addition to the requirements of subsections (a) through (e),
and subject to subsection (g), if an individual enrolls in school as
permitted under subsection (b) and has not attended kindergarten, the
superintendent of the school corporation shall make a determination as
to whether the individual shall enroll in kindergarten or grade 1 based
on the particular model assessment adopted by the governing body
under subsection (g).
(g) To assist the principal and governing bodies, the department
shall do the following:
(1) Establish guidelines to assist each governing body in
establishing a procedure for making appeals to the superintendent
of the school corporation under subsection (e).
(2) Establish criteria by which a governing body may adopt a
model assessment which will be utilized in making the
determination under subsection (f).
(h) If the parents of an individual who would otherwise be subject
to compulsory school attendance under subsection (b), upon request of
the superintendent of the school corporation, certify to the
superintendent of the school corporation that the parents intend to:
(1) enroll the individual in a nonaccredited, nonpublic school; or
(2) begin providing the individual with instruction equivalent to
that given in the public schools as permitted under section 34 of
this chapter;
not later than the date on which the individual reaches seven (7) years
of age, the individual is not bound by the requirements of this chapter
until the individual reaches seven (7) years of age.
(i) The governing body of each school corporation shall designate
the appropriate employees of the school corporation to conduct the exit
interviews for students described in subsection (b)(2). Each exit
interview must be personally attended by:
(1) the student's parent or guardian;
(2) the student;
(3) each designated appropriate school employee; and
(4) the student's principal.
(j) A student who is at least sixteen (16) years of age but less than
eighteen (18) years of age is bound by the requirements of compulsory
school attendance and may not withdraw from school before graduation
unless:
(1) the student, the student's parent or guardian, and the principal
agree to the withdrawal; and
(2) at the exit interview, the student provides written
acknowledgment of the withdrawal and the student's parent or
guardian and the school principal each provide written consent for
the student to withdraw from school.
(k) For the purposes of this section, "school year" has the meaning
set forth in IC 21-2-12-3(h). IC 20-10.1-2-1.
SOURCE: IC 20-8.1-3-36; (04)IN1312.1.249. -->
SECTION 249. IC 20-8.1-3-36 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 36. (a) It is
unlawful for a person operating or responsible for an educational,
correctional, charitable, or benevolent institution or training school to
fail to ensure that a child under his authority attends school as required
under this chapter. Each day of violation of this section constitutes a
separate offense.
(b) If a child is placed in an institution or facility under a court
order, the institution or facility shall charge the county office of the
county of the student's legal settlement under IC 12-19-7 state for the
use of the space within the institution or facility (commonly called
capital costs) that is used to provide educational services to the child
based upon a prorated per student cost.
SOURCE: IC 20-8.1-6.1-7; (04)IN1312.1.250. -->
SECTION 250. IC 20-8.1-6.1-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 7. (a) If a student
is transferred under section 2 of this chapter from a school corporation
in Indiana to a public school corporation in another state, the transferor
corporation shall pay the transferee corporation the full tuition fee
charged by the transferee corporation. However, the amount of the full
tuition fee must not exceed the amount charged by the transferor
corporation for the same class of school, or if the school has no such
classification, the amount must not exceed the amount charged by the
geographically nearest school corporation in Indiana which has such
classification.
(b) If a child is:
(1) placed by a court order in an out-of-state institution or other
facility; and
(2) provided all educational programs and services by a public
school corporation in the state where the child is placed, whether
at the facility, the public school, or another location;
the county office of family and children for the county placing the child
state shall pay from the county family and children's fund to the public
school corporation in which the child is enrolled the amount of transfer
tuition specified in subsection (c).
(c) The transfer tuition for which a county office the state is
obligated under subsection (b) is equal to the following:
(1) The amount under a written agreement among the county
office, state, the institution or other facility, and the governing
body of the public school corporation in the other state that
specifies the amount and method of computing transfer tuition.
(2) The full tuition fee charged by the transferee corporation, if
subdivision (1) does not apply. However, the amount of the full
tuition fee must not exceed the amount charged by the transferor
corporation for the same class of school, or if the school has no
such classification, the amount must not exceed the amount
charged by the geographically nearest school corporation in
Indiana which has such classification.
(d) If a child is:
(1) placed by a court order in an out-of-state institution or other
facility; and
(2) provided:
(A) onsite educational programs and services either through
the facility's employees or by contract with another person or
organization that is not a public school corporation; or
(B) educational programs and services by a nonpublic school;
the county office of family and children for the county placing the child
state shall pay from the county family and children's fund in an amount
and in the manner specified in a written agreement between the county
office and the institution or other facility.
(e) An agreement described in subsection (c) or (d) is subject to the
approval of the director of the division of family and children.
However, for purposes of IC 4-13-2, the agreement shall not be treated
as a contract.
SOURCE: IC 20-8.1-6.1-8; (04)IN1312.1.251. -->
SECTION 251. IC 20-8.1-6.1-8, AS AMENDED BY P.L.111-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 8. (a) As used in this section, the following
terms have the following meanings:
(1) "Class of school" refers to a classification of each school or
program in the transferee corporation by the grades or special
programs taught at the school. Generally, these classifications are
denominated as kindergarten, elementary school, middle school
or junior high school, high school, and special schools or classes,
such as schools or classes for special education, vocational
training, or career education.
(2) "ADM" means the following:
(A) For purposes of allocating to a transfer student state
distributions under IC 21-1-30 (primetime), "ADM" as
computed under IC 21-1-30-2.
(B) For all other purposes, "ADM" as set forth in
IC 21-3-1.6-1.1.
(3) "Pupil enrollment" means the following:
(A) The total number of students in kindergarten through
grade 12 who are enrolled in a transferee school corporation
on a date determined by the Indiana state board of education.
(B) The total number of students enrolled in a class of school
in a transferee school corporation on a date determined by the
Indiana state board of education.
However, a kindergarten student shall be counted under clauses
(A) and (B) as one-half (1/2) a student.
(4) "Special equipment" means equipment that during a school
year:
(A) is used only when a child with disabilities is attending
school;
(B) is not used to transport a child to or from a place where the
child is attending school;
(C) is necessary for the education of each child with
disabilities that uses the equipment, as determined under the
individualized instruction program for the child; and
(D) is not used for or by any child who is not a child with
disabilities.
The Indiana state board of education may select a different date for
counts under subdivision (3). However, the same date shall be used for
all school corporations making a count for the same class of school.
(b) Each transferee corporation is entitled to receive for each school
year on account of each transferred student, except a student
transferred under section 3 of this chapter, transfer tuition from the
transferor corporation or the state as provided in this chapter. Transfer
tuition equals the amount determined under STEP THREE of the
following formula:
STEP ONE: Allocate to each transfer student the capital
expenditures for any special equipment used by the transfer
student and a proportionate share of the operating costs incurred
by the transferee school for the class of school where the transfer
student is enrolled.
STEP TWO: If the transferee school included the transfer student
in the transferee school's ADM for a school year, allocate to the
transfer student a proportionate share of the following general
fund revenues of the transferee school for, except as provided in
clause (C), the calendar year in which the school year ends:
(A) The following state distributions that are computed in any
part using ADM or other pupil count in which the student is
included:
(i) Primetime grant under IC 21-1-30.
(ii) Tuition support for basic programs and at-risk weights
under IC 21-3-1.7-8 (before January 1, 1996) and only for
basic programs (after December 31, 1995).
(iii) Enrollment growth grant under IC 21-3-1.7-9.5.
(iv) At-risk grant under IC 21-3-1.7-9.7.
(v) Academic honors diploma award under IC 21-3-1.7-9.8.
(vi) Vocational education grant under IC 21-3-12.
(vii) Special education grant under IC 21-3-2.1.
(viii) The portion of the ADA flat grant that is available for
the payment of general operating expenses under
IC 21-3-4.5-2(b)(1).
(B) For school years beginning after June 30, 1997, property
tax levies.
(C) For school years beginning after June 30, 1997, excise tax
revenue (as defined in IC 21-3-1.7-2) received for deposit in
the calendar year in which the school year begins.
(D) For school years beginning after June 30, 1997, allocations
to the transferee school under IC 6-3.5.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the result of subtracting the STEP TWO amount from the
STEP ONE amount.
If a child is placed in an institution or facility in Indiana under a court
order, the institution or facility shall charge the
county office of the
county of the student's legal settlement under IC 12-19-7 state for the
use of the space within the institution or facility (commonly called
capital costs) that is used to provide educational services to the child
based upon a prorated per student cost.
(c) Operating costs shall be determined for each class of school
where a transfer student is enrolled. The operating cost for each class
of school is based on the total expenditures of the transferee
corporation for the class of school from its general fund expenditures
as specified in the classified budget forms prescribed by the state board
of accounts. This calculation excludes:
(1) capital outlay;
(2) debt service;
(3) costs of transportation;
(4) salaries of board members;
(5) contracted service for legal expenses; and
(6) any expenditure which is made out of the general fund from
extracurricular account receipts;
for the school year.
(d) The capital cost of special equipment for a school year is equal
to:
(1) the cost of the special equipment; divided by
(2) the product of:
(A) the useful life of the special equipment, as determined
under the rules adopted by the Indiana state board of
education; multiplied by
(B) the number of students using the special equipment during
at least part of the school year.
(e) When an item of expense or cost described in subsection (c)
cannot be allocated to a class of school, it shall be prorated to all
classes of schools on the basis of the pupil enrollment of each class in
the transferee corporation compared to the total pupil enrollment in the
school corporation.
(f) Operating costs shall be allocated to a transfer student for each
school year by dividing:
(1) the transferee school corporation's operating costs for the class
of school in which the transfer student is enrolled; by
(2) the pupil enrollment of the class of school in which the
transfer student is enrolled.
When a transferred student is enrolled in a transferee corporation for
less than the full school year of pupil attendance, the transfer tuition
shall be calculated by the portion of the school year for which the
transferred student is enrolled. A school year of pupil attendance
consists of the number of days school is in session for pupil attendance.
A student, regardless of the student's attendance, is enrolled in a
transferee school unless the student is no longer entitled to be
transferred because of a change of residence, the student has been
excluded or expelled from school for the balance of the school year or
for an indefinite period, or the student has been confirmed to have
withdrawn from school. The transferor and the transferee corporation
may enter into written agreements concerning the amount of transfer
tuition due in any school year. Where an agreement cannot be reached,
the amount shall be determined by the Indiana state board of education,
and costs may be established, when in dispute, by the state board of
accounts.
(g) A transferee school shall allocate revenues described in
subsection (b) STEP TWO to a transfer student by dividing:
(1) the total amount of revenues received; by
(2) the ADM of the transferee school for the school year that ends
in the calendar year in which the revenues are received.
However, for state distributions under IC 21-1-30, IC 21-3-2.1,
IC 21-3-12, or any other statute that computes the amount of a state
distribution using less than the total ADM of the transferee school, the
transferee school shall allocate the revenues to the transfer student by
dividing the revenues that the transferee school is eligible to receive in
a calendar year by the pupil count used to compute the state
distribution.
(h) In lieu of the payments provided in subsection (b), the transferor
corporation or state owing transfer tuition may enter into a long term
contract with the transferee corporation governing the transfer of
students. This contract is for a maximum period of five (5) years with
an option to renew, and may specify a maximum number of pupils to
be transferred and fix a method for determining the amount of transfer
tuition and the time of payment, which may be different from that
provided in section 9 of this chapter.
(i) If the school corporation can meet the requirements of
IC 21-1-30-5, it may negotiate transfer tuition agreements with a
neighboring school corporation that can accommodate additional
students. Agreements under this section may be for one (1) year or
longer and may fix a method for determining the amount of transfer
tuition or time of payment that is different from the method, amount,
or time of payment that is provided in this section or section 9 of this
chapter. A school corporation may not transfer a student under this
section without the prior approval of the child's parent or guardian.
(j) If a school corporation experiences a net financial impact with
regard to transfer tuition that is negative for a particular school year as
described in IC 6-1.1-19-5.1, the school corporation may appeal for an
excessive levy as provided under IC 6-1.1-19-5.1. This subsection
expires January 1, 2005.
SOURCE: IC 20-8.1-6.5-2; (04)IN1312.1.252. -->
SECTION 252. IC 20-8.1-6.5-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 2. Definitions. As used
in this chapter:
(a) "Transferor corporation", "transferee corporation" and
"transferred student" shall mean, respectively, the school corporation
transferring students, the school corporation receiving students, and
any student transferred pursuant to a court order described in section
1 of this chapter.
(b) "General fund", "capital projects fund", and "debt service fund"
shall refer, respectively, to the school corporation funds set up under
the provisions of IC 21-2-11 (repealed January 1, 2005), IC 21-2-15
(repealed January 1, 2005), and IC 21-2-4, respectively.
(c) "Class of school" shall refer to a classification of each school in
the transferee corporation by the grades taught therein (generally
denominated as elementary schools, middle schools or junior high
schools, high schools, and special schools such as schools for special
education, vocational training or career education). Elementary schools
shall include schools containing kindergarten, but for all purposes
under this chapter, a kindergarten student shall be counted as one-half
(1/2) a student.
(d) "ADM" shall refer to ADM as defined in IC 21-3-1.6-1.1.
SOURCE: IC 20-8.1-6.5-4; (04)IN1312.1.253. -->
SECTION 253. IC 20-8.1-6.5-4, AS AMENDED BY P.L.90-2002,
SECTION 409, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 4. (a) Where a transfer is ordered
to commence in a school year, where the transferor corporation has net
additional costs over savings (on account of any transfer ordered)
allocable to the calendar year in which the school year begins, and
where the transferee corporation has no budgeted funds for such net
additional costs, they may be recovered by one (1) or more of the
following methods in addition to any other methods provided by
applicable law:
(1) An emergency loan made pursuant to IC 20-5-4-6 to be paid,
however, out of the debt service levy and fund, or a loan from any
state fund made available therefor.
(2) An advance in such calendar year of state funds, which would
otherwise become payable to the transferee corporation after such
calendar year pursuant to applicable law.
(3) A grant or grants in such calendar year from any funds of the
state made available therefor.
(b) The net additional costs shall be certified by the department of
local government finance, and any grant shall be made solely after
affirmative recommendation of the tax control board created by
IC 6-1.1-19-4.1. IC 6-1.1-19. Repayment of any advance or loan from
the state shall be made in accordance with IC 6-1.1-19-4.5(d)
IC 6-1.1-19. The use of any of the methods enumerated above shall not
subject the transferor corporation to the provisions of IC 6-1.1-19-4.7.
This subsection expires January 1, 2005.
SOURCE: IC 20-8.1-6.5-9; (04)IN1312.1.254. -->
SECTION 254. IC 20-8.1-6.5-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 9. Transportation Costs
. State Reimbursement. Transportation costs for transferred students
for each calendar year or for capital outlay and for operations shall be
reimbursed by the state to the transferor corporation in the same
percent of the total outlay which the distributions to the transferor
corporation under IC 1971, 21-3-1.5-3, or from the state flat grant
distribution account where it is credited to the general fund, constitute
of its total annual general fund appropriations for such year. In this
calculation there shall be excluded from general fund appropriations
capital outlay, debt service, and any expenditure which is made out of
the general fund from extracurricular accounts. Any amount not thus
reimbursed and raised as part of the transferor corporation's general
fund levy shall constitute an increase in its base tax levy for such
budget year, as otherwise defined and as applied in IC 6-1.1-1-16 and
IC 6-1.1-19 (repealed January 1, 2005). In no event shall the state
reimbursement for transportation operating expense to the transferor
corporation be less than it would receive under applicable law without
regard to this section.
SOURCE: IC 20-8.1-7-18; (04)IN1312.1.255. -->
SECTION 255. IC 20-8.1-7-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 18. (a) Whenever the
test required under section 17 of this chapter discloses that the hearing
of any child is impaired and the child cannot be taught advantageously
in regular classes, the governing body of the school corporation shall
provide appropriate remedial measures and correctional devices. The
governing body shall advise the child's parents of the proper medical
care, attention, and treatment needed. The governing body shall
provide approved mechanical auditory devices and prescribe courses
in lip reading by qualified, competent and approved instructors. The
superintendent of public instruction and the head of the rehabilitative
services bureau of the division of disability, aging, and rehabilitative
services shall cooperate with school corporations to provide this
assistance; they shall also provide advice and information to assist
school corporations in complying with this section. The local governing
body may adopt rules and regulations for the administration of this
section.
(b) Each school corporation may receive and accept bequests and
donations for immediate use or as trusts or endowments to assist in
meeting costs and expenses incurred in complying with the
requirements of this section. When funds for the full payment of these
expenses are not otherwise available, in any school corporation, any
unexpended balance in the state treasury which is available for the use
of local schools and is otherwise unappropriated may be loaned to the
school corporation for that purpose by the governor. Any loan made by
the governor under this section shall be repaid to the fund in the state
treasury from which it came within two (2) years after the date it was
advanced. These loans shall be repaid through the levying of taxes or
imposition of a local income tax for education (as authorized by
law) in the borrowing school corporation.
SOURCE: IC 20-9.1-6-3; (04)IN1312.1.256. -->
SECTION 256. IC 20-9.1-6-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 3. Security
Agreements, Appropriation. Before a security agreement is executed,
an appropriation for the amount of the purchase price shall be made.
This appropriation is made in the same manner as any other
appropriation, except that its amount is not limited by the amount of
funds presently available or the amount to be raised by a presently
effective tax levy or local income tax for education. No petition to
borrow, notice to taxpayers or other formality is necessary except as
specifically provided under this chapter and except as may be required
by law for the issuance of general obligation bonds.
SOURCE: IC 20-9.1-6-5; (04)IN1312.1.257. -->
SECTION 257. IC 20-9.1-6-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 5. When a school
corporation requires funds to purchase a school bus for cash, it may, in
lieu of issuing general obligation bonds, negotiate for and borrow funds
or purchase the bus on an installment conditional sales contract or
promissory note secured by the bus. To effect a loan, the school
corporation shall execute its negotiable note or notes to the lender. The
notes shall not extend for more than six (6) years and shall be payable
at the same times and in the same manner as provided for security
agreements in section 2 of this chapter. Before a note is executed, an
appropriation for the amount of the purchase price of the buses and any
incidental expenses connected with the purchase or the loan, shall be
made in the same manner as other appropriations are made, except that
the amount of the appropriation is not limited by the amount of funds
available at the time of loan or purchase or by the amount of funds to
be raised by a tax levy or local income tax for education effective at
the time of the loan. No petition to borrow, notice to taxpayers, or other
formality is necessary to borrow funds under this section except as
specifically provided in this chapter.
SOURCE: IC 20-10.1-6.5-1; (04)IN1312.1.258. -->
SECTION 258. IC 20-10.1-6.5-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. As used in this
chapter:
"Advancement fund" refers to the school technology advancement
account as created under section 4 of this chapter.
"Board" refers to the state board of education established under
IC 20-1-1-1.
"School corporation" means any corporation authorized by law to
establish public schools and levy taxes for their maintenance. has the
meaning set forth in IC 20-5-1-3.
SOURCE: IC 20-10.1-25-1; (04)IN1312.1.259. -->
SECTION 259. IC 20-10.1-25-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. (a) The educational
technology program and fund is established for the purpose of
providing and extending educational technologies to elementary and
secondary schools for:
(1) the 4R's technology grant program to assist school
corporations (on behalf of public schools) in purchasing
technology equipment:
(A) for kindergarten and grade 1 students, to learn reading,
writing, and arithmetic using technology;
(B) for students in all grades, to understand that technology is
a tool for learning; and
(C) for students in kindergarten through grade 3 who have
been identified as needing remediation, to offer daily
remediation opportunities using technology to prevent those
students from failing to make appropriate progress at the
particular grade level;
(2) providing educational technologies, including computers in
the homes of students;
(3) conducting educational technology training for teachers; and
(4) other innovative educational technology programs.
(b) The department may also utilize money in the fund under
contracts entered into with the Indiana department of administration
and the state data processing oversight commission to study the
feasibility of establishing an information telecommunications gateway
that provides access to information on employment opportunities,
career development, and instructional services from data bases
operated by the state among the following:
(1) Elementary and secondary schools.
(2) Institutions of higher learning.
(3) Vocational educational institutions.
(4) Libraries.
(5) Any other agencies offering education and training programs.
(c) The fund consists of:
(1) state appropriations;
(2) private donations to the fund;
(3) money directed to the fund from the corporation for
educational technology under IC 20-10.1-25.1; or
(4) any combination of the amounts described in subdivisions (1)
through (3).
(d) The program and fund shall be administered by the department.
(e) Unexpended money appropriated to or otherwise available in the
fund for the department's use in implementing the program under this
chapter at the end of a state fiscal year does not revert to the state
general fund but remains available to the department for use under this
chapter.
(f) Subject to section 1.2 of this chapter, a school corporation may
use money from the school corporation's capital projects fund
(repealed January 1, 2005) as permitted under IC 21-2-15-4
(repealed January 1, 2005) for educational technology equipment.
SOURCE: IC 20-10.1-25-1.2; (04)IN1312.1.260. -->
SECTION 260. IC 20-10.1-25-1.2, AS AMENDED BY
P.L.77-1999, SECTION 2, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 1.2. (a) Notwithstanding any other
law and beginning July 1, 1993, a school corporation is not entitled to:
(1) receive any money under this chapter or IC 20-10.1-25.1;
(2) use money from the school corporation's capital projects fund
(repealed January 1, 2005) for educational technology
equipment under IC 21-2-15-4 (repealed January 1, 2005); or
(3) receive an advance from the common school fund for an
educational technology program under IC 21-1-5;
unless the school corporation develops a three (3) year technology plan.
(b) Each technology plan must include at least the following
information:
(1) A description of the school corporation's intent to integrate
technology into the school corporation's curriculum.
(2) A plan for providing inservice training.
(3) A schedule for maintaining and replacing educational
technology equipment.
(4) A description of the criteria used to select the appropriate
educational technology equipment for the appropriate use.
(5) Other information requested by the department after
consulting with the budget agency.
(c) The department shall develop guidelines concerning the
development of technology plans. The guidelines developed under this
subsection are subject to the approval of the governor.
SOURCE: IC 20-10.1-25-5; (04)IN1312.1.261. -->
SECTION 261. IC 20-10.1-25-5, AS ADDED BY P.L.77-1999,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 5. A school corporation that receives a grant under
this chapter must deposit the grant in the school technology fund
established under IC 21-2-18 (repealed January 1, 2005).
SOURCE: IC 20-10.1-25.3-11; (04)IN1312.1.262. -->
SECTION 262. IC 20-10.1-25.3-11, AS AMENDED BY
P.L.234-2001, SECTION 2, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 11. (a) The department shall list all
school corporations in Indiana
before January 1, 2005, according to
assessed valuation for property tax purposes per student in ADM,
beginning with the school corporation having the lowest assessed
valuation for property tax purposes per student in ADM
and after
December 31, 2004, according to estimated collections of the local
income tax for education per student in ADM. For purposes of the
list made under this section, the Indiana School for the Deaf and the
Indiana School for the Blind shall be considered to have the lowest
assessed valuation for property tax purposes
and lowest local income
tax for education per student in ADM during the six (6) year period
beginning on July 1, 2001.
(b) The department must prepare a revised list under subsection (a)
before a new series of grants may begin.
(c) The department shall determine those school corporations to be
placed in a group to receive a grant in a fiscal year under this chapter
as follows:
(1) Beginning with the school corporation that is first on the list
developed under subsection (a), the department shall continue
sequentially through the list and place school corporations that
qualify for a grant under section 6 of this chapter in a group until
the cumulative total ADM of all school corporations in the group
depletes the money that is available for grants in the fiscal year.
(2) Each fiscal year the department shall develop a new group by
continuing sequentially through the list beginning with the first
qualifying school corporation on the list that was not placed in a
group in the prior fiscal year.
(3) If the final group developed from the list contains substantially
fewer students in ADM than available money, the department
shall:
(A) prepare a revised list of school corporations under
subsection (a); and
(B) place in the group qualifying school corporations from the
top of the revised list.
(4) The department shall label the groups with sequential
numbers beginning with "group one".
SOURCE: IC 20-10.1-25.3-16; (04)IN1312.1.263. -->
SECTION 263. IC 20-10.1-25.3-16, AS AMENDED BY
P.L.234-2001, SECTION 4, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 16. A school corporation that
receives a grant under this chapter must deposit the grant in the school
technology fund established under IC 21-2-18 (repealed January 1,
2005). If the Indiana School for the Deaf or the Indiana School for the
Blind receives a grant under this chapter, the school must deposit the
grant in an account or fund that the school uses exclusively for the
funding of technology.
SOURCE: IC 20-12-14-2; (04)IN1312.1.264. -->
SECTION 264. IC 20-12-14-2, AS AMENDED BY P.L.224-2003,
SECTION 139, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 2. (a) Instruction in laboratory
schools may be provided for pre-school pupils, kindergarten pupils,
special education pupils, and for all or a portion of the twelve (12)
common school grades.
(b) Agreements may be entered into with local school units and
educational organizations for the assignment of pupils to such
laboratory schools, the payment of transfer fees, and contributions to
the cost of establishing and maintaining the laboratory schools.
(c) A laboratory school that:
(1) is operated by a university under this chapter without an
agreement described in subsection (b); and
(2) has an ADM (as defined in IC 21-3-1.6-1.1(d)) of not more
seven hundred fifty (750);
shall be treated as a charter school for purposes of local funding under
IC 6-1.1-19 (repealed January 1, 2005) and state funding under
IC 21-3.
(d) A pupil who attends a laboratory school full time may not be
counted in ADM or ADA by any local school unit when his attendance
is not regulated under an agreement.
SOURCE: IC 21-1-5-4; (04)IN1312.1.265. -->
SECTION 265. IC 21-1-5-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 4. (a) To qualify for an
advance under this chapter, the school corporation or school township
is required to establish a capital projects fund under IC 21-2-15
(repealed January 1, 2005). However, the Indiana state board of
education, after consulting with the department of education and the
budget agency, may waive or modify this requirement upon a showing
of good cause by the school corporation or school township.
(b) No advance to a school corporation or a school township for any
school building construction program may exceed the greater of:
(1) fifteen million dollars ($15,000,000); or
(2) the product of fifteen thousand dollars ($15,000) multiplied by
the number of pupils accommodated as a result of the school
construction building program. However, if a school corporation
or school township has sustained loss by fire, wind, cyclone, or
other disaster, this limitation may be waived by the Indiana state
board of education after consulting with the department of
education and the budget agency.
(c) Advances for educational technology programs are without
limitation in amount other than the availability of funds in the common
school fund for this purpose and the ability of the school corporation
or school township desiring an advance to pay the advance in
accordance with the terms of the advance.
SOURCE: IC 21-1-11-2; (04)IN1312.1.266. -->
SECTION 266. IC 21-1-11-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. (a) The state
board of education is authorized, subject to the provisions of this
chapter, to order and direct the auditor of state to divert and make an
advancement periodically from the state school tuition fund for the
construction, remodeling, or repair of school buildings to any school
corporation or school organized and existing under and pursuant to any
law of the state of Indiana for the operation of a public school which is
a part of the common school system of the state. An advancement to
any school or school corporation under section 3 of this chapter shall
not be in excess of two hundred fifty thousand dollars ($250,000).
However, this dollar limitation is waived if:
(1) the school corporation has an adjusted assessed valuation per
pupil ADA of less than eight thousand four hundred dollars
($8,400);
(2) the school corporation's debt service tax rate would exceed
one dollar ($1) for each one hundred dollars ($100) of assessed
valuation without a waiver of the dollar limitation; and
(3) the school property tax control board recommends a waiver of
the limitation.
(b) All advancements shall be made by the state board of education
only as set forth in this chapter. In no instance shall an advancement be
made for any purpose other than the construction, remodeling, or
repairing of school buildings and classrooms and shall not be made for
gymnasiums, auditoriums, or any athletic facilities.
SOURCE: IC 21-1-11-3; (04)IN1312.1.267. -->
SECTION 267. IC 21-1-11-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 3. The state board of
education shall make nondisaster advancements to schools and school
corporations under the provisions of this chapter only when the
following conditions exist:
(a) The school buildings and classrooms of any school or school
corporation are not adequate for the proper education of the pupils
in that school or school corporation and the school or school
corporation is unable to finance the construction, remodeling, or
repair of the necessary classrooms under existing debt and tax
limitations without undue financial hardship.
(b) The school corporation or school has issued its bonds for the
purpose of constructing, remodeling, or repairing schools and
school buildings in ninety percent (90%) of the maximum amount
allowable under the constitution and laws of the state of Indiana.
(c) The school or school corporation does not have funds
available for the construction, remodeling, or repair of school
buildings and classrooms sufficient to meet the requirements for
the proper education of the pupils therein.
(d) The school corporation or school shall have established and
maintained:
(1) to qualify for a loan before January 1, 2005, a tax levy
in the amount of at least sixteen and sixty-seven hundredths
cents ($0.1667) on each one hundred dollars ($100) of taxable
property within the school corporation for school building
purposes continuously for three (3) years prior to the time
when the school or school corporation shall make application
to the state board of education for an advancement; and
(2) to qualify for a loan after December 31, 2004, any
combination of:
(A) the tax levies required under subdivision (1) for
school building purposes; and
(B) a local income tax for education rate of at least two
and one-half percent (2.5%);
continuously for three (3) years before the time when the
school or school corporation shall make application to the
Indiana state board of education for an advancement.
SOURCE: IC 21-2-4-2; (04)IN1312.1.268. -->
SECTION 268. IC 21-2-4-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 2. (a) The governing
body of each school corporation in Indiana shall establish a debt
service fund for the payment of the following:
(1) All debt and other obligations arising out of funds borrowed
or advanced for school buildings when purchased from the
proceeds of a bond issue for capital construction.
(2) A lease to provide capital construction.
(3) Interest on emergency and temporary loans.
(4) All debt and other obligations arising out of funds borrowed
or advanced for the purchase or lease of school buses when
purchased or leased from the proceeds of a bond issue, or from
money obtained from a loan made under IC 20-9.1-6-5, for that
purpose.
(5) All debt and other obligations arising out of funds borrowed
to pay judgments against the school corporation. or
(6) All debt and other obligations arising out of funds borrowed
to purchase equipment.
(7) All debt and other obligations arising under IC 20-5-4-1.7
(repealed), IC IC 20-8.1-6.5-4, IC 21-1-5, or IC 21-1-11.
(b) The term "debt service" shall include but not be limited to lease
rental obligations, school bonds and coupons and civil bond obligations
assumed by school corporations reorganized pursuant to IC 20-4-1, and
any interest cost on emergency and temporary loans but shall not
include the repayment of the principal of the emergency and temporary
loans obtained for benefit of any other fund, except as authorized
under subsection (a).
(c) All receipts and disbursements authorized by law for school
funds and tax levies for the lease rental fund, bond fund, sinking fund,
civil bond obligation fund, and payment of interest on emergency and
temporary loans shall be received in and disbursed from the debt
service fund.
SOURCE: IC 21-2-4-3; (04)IN1312.1.269. -->
SECTION 269. IC 21-2-4-3, AS AMENDED BY P.L.90-2002,
SECTION 421, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3.
A tax levy shall be
established by the governing body of each school corporation for the
1968 calendar year and all succeeding calendar years A school
corporation shall make an annual appropriation sufficient to pay all
debt service obligations.
If the advertised levy is insufficient to produce revenue to meet all
debt service obligations for any calendar year, the department of local
government finance is hereby authorized to establish a levy greater
than advertised, if necessary, to meet such obligations.
SOURCE: IC 21-2-19; (04)IN1312.1.270. -->
SECTION 270. IC 21-2-19 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]:
Chapter 19. School System of Accounts and Accounting
Sec. 1. The state board of accounts shall exercise its authority
under IC 5-11-1-2 to establish a uniform system of accounts and
accounting for school corporations (as defined in IC 20-5-1-3). The
state board of accounts may revise the system of accounts and
accounting established under this chapter as the state board of
accounts determines necessary to meet the requirements under
section 2 of this chapter.
Sec. 2. The system of accounts and accounting must meet the
following requirements:
(1) Promote the development of financial reports that are
consistent with generally accepted governmental accounting
principles.
(2) Facilitate the comparison of annual revenues and
expenditures among school corporations.
(3) Assist school corporations in meeting all special reporting
requirements imposed under the terms of state law, federal
law, an agreement, or a gift.
(4) Provide adequate internal controls.
(5) Assist the state board of accounts and other auditors in
auditing the finances and internal controls of school
corporations.
Sec. 3. The system of accounts and accounting may provide for
one (1) or more funds and one (1) or more accounts within a fund.
The system must provide for a debt service fund as long as the
school corporation has outstanding debt service (as defined in
IC 21-2-4-2) obligations.
Sec. 4. Money in a fund of a school corporation on December 31,
2004, shall be transferred on January 1, 2005, to the funds and
accounts established under this chapter in conformity with the
policies and procedures prescribed by the state board of accounts.
Sec. 5. The system of accounts and accounting established under
this chapter shall be used by all school corporations after
December 31, 2004.
Sec. 6. Every person who has charge of the collection, custody,
and disbursement of any funds that are collected and expended for
the purpose of paying any expenses that may be incurred in
conducting any athletic, social, or other school function, the cost of
which is not paid from public funds, shall keep an accurate account
of all money so received and expended, showing the sources of all
such receipts and the purposes for which the money was expended
and the balance on hand. A copy of the report shall be filed with
the township trustee, board of school trustees, or board of school
commissioners within two (2) weeks after the close of each school
year. The filed report shall be a public record open to inspection by
any interested person at any reasonable time during office hours.
SECTION 271. IC 21-2-20 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 5, 2005]:
Chapter 20. Elimination of Property Tax Levies; Repayment of
Prior Debt
Sec. 1. This chapter does not apply to a statute that authorizes
a school corporation to impose an ad valorem property tax levy for
a public library, a historical society, an art association, or a public
playground.
Sec. 2. After June 30, 2005, a school corporation may not impose
an ad valorem property tax levy for any school purpose, including
the repayment of debt or to make payments under a lease
agreement. A school corporation may impose an ad valorem
property tax only for the first six (6) months in 2005. The amount
of the levy in 2005 may not exceed fifty percent (50%) of the
amount that the school corporation could levy if the school
corporation were allowed to impose a property tax for the full
calendar year. Property taxes first due and payable and imposed
for the first six (6) months in 2005 shall be taxed in one (1)
installment due on May 10, 2005.
Sec. 3. A school corporation may consolidate services to which
this chapter applies and other services payable from a property tax
levy. However, the governing body delivering the consolidated
services shall allocate the joint costs between amounts received by
the school corporation for school purposes and property taxes
based on the relative benefit of the consolidated services to school
purposes and other purposes.
Sec. 4. Section 1 of this chapter does not release or extinguish
the debt of a school corporation that was incurred before July 1,
2005. However, to the extent permitted under the Constitution of
the United States and the Constitution of the State of Indiana, a
law entitling a holder of an obligation to enforce a right to
repayment from property tax levies does not apply after June 30,
2005, to a holder of an obligation that was created before July 1,
2005, but was incurred to finance an activity to which this chapter
applies.
Sec. 5. If an agreement with a school corporation entered into
before July 1, 2005, or a judgment entered against a political
subdivision before July 1, 2005, requires the school corporation to
make payments after June 30, 2005, from property tax levies that
are prohibited by section 1 of this chapter, the holders of the
obligations are entitled to payment from all other sources of
receipts that are available to the school corporation after June 30,
2005, except receipts that by statute or the terms of a grant are
restricted to another use.
SOURCE: IC 21-10; (04)IN1312.1.272. -->
SECTION 272. IC 21-10 IS ADDED TO THE INDIANA CODE AS
A
NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2004]:
ARTICLE 10. BUDGETS
Chapter 1. Application; Definitions
Sec. 1. This article applies to all school corporations (as defined
in IC 36-1-2-17).
Sec. 2. This article applies only to budgets for a budget year
beginning after June 30, 2004.
Sec. 3. The definitions in this chapter apply throughout this
article.
Sec. 4. The definitions in IC 36-1-2 apply throughout this article.
Sec. 5. As used in this article, "budget year" means a year
beginning on July 1 in a calendar year and ending on June 30 of
the following calendar year.
Sec. 6. "General money" means revenue, including distributions
from the state, that is subject to the expenditure limit under this
article. The term does not include money from an exempted source
(as defined in IC 21-10-2-7).
Sec. 7. Not later than November 1, 2004, the department of local
government finance shall recalculate all calendar year school
budget and tax information necessary to implement this article on
a budget year basis. The department of local government finance
shall distribute the information to school corporations, county
auditors, county treasurers, and county boards of tax adjustment
not later than November 1, 2004. The information distributed
under this subsection shall be used to implement this article.
Chapter 2. Expenditure Limitation
Sec. 1. This chapter does not apply to the part of an
appropriation that is funded from any of the following sources:
(1) Revenues received from the government of the United
States.
(2) Revenues contributed by a governmental entity described
in IC 36-1-7-1 to the political subdivision to administer an
interlocal agreement under IC 36-1-7 or another statute
providing for a joint enterprise, if the revenues were either
counted toward the expenditure limit of the political
subdivision contributing the revenues or qualified as
exempted source revenues for the political subdivision
contributing the revenues.
(3) The proceeds of:
(A) contracts with; and
(B) grants, gifts, donations, and bequests made to;
the political subdivision for a purpose specified by the
contractor or donor.
(4) User charges derived by the political subdivision from the
sale of a product or service:
(A) pledged or legally available to repay any security; or
(B) for which the quantity of the product or level of service
provided to a user is at the discretion of the user.
(5) Revenues derived from the issuance of any security.
However, this subdivision does not exempt the money pledged
to repay the principal of and interest on the security or to
establish a reserve for repayment.
(6) Revenues received from the sale of fixed assets or gains on
fixed asset transfers.
(7) Revenues raised to meet a fiscal emergency.
(8) Unexpended appropriated balances remaining in a
cumulative fund after the year in which the money was
appropriated.
Sec. 2. As used in this chapter, "adjustment factor" refers to the
adjustment factor determined under section 17 of this chapter.
Sec. 3. As used in this chapter, "appropriations" refers to the
total capital or operating appropriations of a political subdivision.
The term includes the amount needed to meet the obligations of an
allocation district. The term does not include debt service
expenditures, emergency expenditures, or expenditures from an
exempted source.
Sec. 4. As used in this chapter, "base year" means:
(1) a political subdivision's first budget year beginning after
June 30, 2004, if the term is used to compute the expenditure
limit for a political subdivision that was initially established
before July 1, 2004; or
(2) the first budget year in which a political subdivision
operated for an entire budget year, if subdivision (1) does not
apply.
Sec. 5. As used in this chapter, "base year per capita
appropriations" refers to the base year per capita appropriations
of a political subdivision, as determined under section 18 of this
chapter.
Sec. 6. As used in this chapter, "estimated population" means
the total number of individuals who are residents of a political
subdivision or an allocation district, as determined under section
15 of this chapter.
Sec. 7. As used in this chapter, "exempted source" means a
source of revenue exempted from the application of this chapter
under section 1 of this chapter.
Sec. 8. As used in this chapter, "expenditure limit" means the
maximum amount of appropriations that a political subdivision or
an allocation district may appropriate for a budget year, as
determined under section 19 of this chapter. The term does not
refer to actual appropriations or actual expenditures.
Sec. 9. As used in this chapter, "fiscal emergency" means
circumstances requiring an expenditure exceeding the expenditure
limit, as determined under section 28 of this chapter.
Sec. 10. As used in this chapter, "inflation index" means the
change in the general price level of goods and services as
determined under section 16 of this chapter.
Sec. 11. As used in this chapter, "revenues" means money
received by a political subdivision or an allocation district from
interest, a tax, a penalty, a grant, a state distribution, or any other
receipt.
Sec. 12. As used in this chapter, "security" means any bond,
note, warrant, or other evidence of indebtedness, whether or not
the bond, note, warrant, or other evidence of indebtedness
constitutes a debt of the political subdivision or allocation district
within the meaning of Article 13, Section 1 of the Constitution of
the State of Indiana.
Sec. 13. A political subdivision may not appropriate, allot, or
expend in a budget year more than an amount equal to the
expenditure limit for the political subdivision or as determined
under the latest computation made by the department of local
government finance under section 14 of this chapter before the
beginning of the budget year.
Sec. 14. (a) Not later than six (6) months before the beginning of
a political subdivision's budget year, the department of local
government finance shall make a preliminary estimate of each of
the computations required under sections 15 through 26 of this
chapter for the political subdivision.
(b) In order to:
(1) correct a clerical or computational error; or
(2) incorporate data that becomes available after the
preliminary estimate is computed under subsection (a);
the department of local government finance may adjust a
computation under sections 15 through 26 of this chapter for a
budget year at any time before the first day of the budget year.
(c) Not later than five (5) business days after the department of
local government finance computes an estimate under subsection
(a) or (b), the department of local government finance shall
distribute a copy of the estimate for a political subdivision in a
county to the political subdivision and the county auditor.
(d) If the total appropriations of a political subdivision will
exceed the latest expenditure limit computed under subsection (a)
or (b), the political subdivision or the department of local
government finance shall adjust the appropriations to comply with
section 13 of this chapter.
Sec. 15. The department of local government finance shall
compute the estimated population in the budget year for each
political subdivision. The estimated population shall be estimated
for the first day of the month preceding the budget year by six (6)
months using the latest available actual or estimated population
data from the Bureau of the Census of the United States
Department of Commerce.
Sec. 16. (a) The department of local government finance shall
compute an inflation index for each political subdivision's:
(1) base year; and
(2) next budget year.
(b) The inflation index shall be estimated for the first day of the
month preceding the budget year by six (6) months using the
implicit price deflator for the gross national product, or its closest
equivalent, which is available from the United States Bureau of
Economic Analysis.
Sec. 17. (a) The department of local government finance shall
compute the adjustment factor for each political subdivision's:
(1) base year; and
(2) next budget year.
(b) The adjustment factor for the base year is equal to the result
in STEP THREE of the following formula:
STEP ONE: Determine the estimated population for the base
year.
STEP TWO: Determine the quotient of the inflation index for
the base year divided by one hundred (100).
STEP THREE: Multiply the STEP ONE amount by the STEP
TWO amount.
(c) The adjustment factor for a budget year after the base year
is equal to the result in STEP FOUR of the following formula:
STEP ONE: Determine the estimated population for the
budget year.
STEP TWO: Determine the quotient of:
(A) the inflation index for the budget year minus the
inflation index for the base year; divided by
(B) one hundred (100).
STEP THREE: Determine the greater of zero (0) or the STEP
TWO result.
STEP FOUR: Multiply the STEP ONE amount by the sum of
one (1) plus the STEP THREE result.
Sec. 18. The department of local government finance shall
compute the base year per capita appropriations for each political
subdivision. The base year per capita appropriations of a political
subdivision is equal to the quotient of:
(1) the total appropriations actually expended by a political
subdivision in the political subdivision's base year; divided by
(2) the adjustment factor for the base year.
Sec. 19. (a) The department of local government finance shall
compute the expenditure limit for each political subdivision.
(b) The expenditure limit for a political subdivision in a year
after the base year is the result determined under STEP TWO of
the following formula:
STEP ONE: Determine the base year per capita
appropriations of the political subdivision.
STEP TWO: Multiply the STEP ONE result by the
adjustment factor for the political subdivision's budget year.
(c) The expenditure limit for a political subdivision that has not
operated for at least one (1) full budget year is the total amount of
appropriations approved by the department of local government
finance for that year.
Sec. 20. If the Bureau of Economic Analysis of the United States
Department of Commerce, or its successor agency, changes the
base year on which it calculates the implicit price deflator for the
gross national product, the department of local government finance
shall adjust the implicit price deflator for the gross national
product used in making the calculations under this chapter to
compensate for the change in the base year.
Sec. 21. If a political subdivision transfers out or accepts the
responsibility of a program or service to or from another unit of
government, the expenditure limit and the base year per capita
appropriations shall be decreased or increased correspondingly to
reflect these changes.
Sec. 22. If a program or service administered by a political
subdivision that is totally or partially funded by the federal
government ceases to be funded by the federal government, the
political subdivision may elect to fund the entire program or
service, and the expenditure limitations shall be increased to reflect
these changes.
Sec. 23. If a political subdivision transfers the funding source of
a program or service from taxes to user charges or other exempted
revenue sources as specified in this chapter, the expenditure limit
shall be decreased to reflect these changes.
Sec. 24. If a political subdivision transfers programs or services
that are funded by exempted sources to programs or services that
are funded by money subject to this chapter, the expenditure
limitation shall be increased to reflect these changes.
Sec. 25. If a political subdivision transfers revenues from
sources exempt under this chapter to funds containing revenues
from nonexempt sources, the revenues transferred shall be part of
and subject to the expenditure limit of this chapter.
Sec. 26. If a school corporation is initially created in a county
after June 30, 2005, the expenditure limits of all school
corporations shall be proportionally reduced so that the sum of the
expenditure limits for all school corporations in the county is the
same before and after the establishment of the new school
corporation. However, with the consent of the fiscal body of each
school corporation in the county, the department of local
government finance may use a different formula for adjusting the
expenditure limits of the school corporations.
Sec. 27. With the consent of the fiscal body of each affected
political subdivision, the department of local government finance
may lower the expenditure limit of one (1) or more political
subdivisions and raise the expenditure limit of one (1) or more
other political subdivisions by the same amount.
Sec. 28. (a) The limits as provided in this chapter may be
exceeded if:
(1) a fiscal emergency is declared by at least a two-thirds (2/3)
vote of the fiscal body of the political subdivision; and
(2) the department of local government finance approves the
declaration of a fiscal emergency.
(b) A political subdivision may petition the department of local
government finance to approve a declaration of a fiscal emergency
for the political subdivision. The petition must describe the fiscal
emergency and indicate the source of revenues that will be used to
meet the fiscal emergency. After giving at least ten (10) days notice
to the political subdivision and the county auditor and publishing
at least one (1) notice under IC 5-3-1 in the county, the department
of local government finance shall conduct a hearing concerning the
petition.
(c) After the hearing under subsection (b), the department of
local government finance shall approve a declaration of a fiscal
emergency only if the department of local government finance
determines that:
(1) an extraordinary occurrence requires immediate
expenditures; or
(2) a shortfall of revenues will result in default on the
repayment of principal or interest on an indebtedness.
(d) Payment of expenses directly related to elimination of an ad
valorem property tax system, including the costs of refinancing
bonds or leases and settling disputes related to bonds or leases,
shall be treated as a fiscal emergency.
(e) The department of local government finance shall approve
the sources that the political subdivision may use to pay for the
fiscal emergency. If the department of local government finance
authorizes a distribution from the political subdivision's account
in the state emergency reserve fund established by IC 21-10-5-1,
the auditor of state shall make the disbursement to the political
subdivision in the amount approved by the department of local
government finance. The political subdivision shall reimburse the
political subdivision's account in the state emergency reserve fund
for the distribution under the schedule determined by the
department of local government finance. Reimbursement of the
state emergency reserve fund may be treated as a fiscal emergency.
Sec. 29. Funding for fiscal emergencies may not be included in
the appropriations base for computing the expenditure limit for
appropriations in subsequent years. Fiscal emergency
appropriations shall remain separate from appropriations subject
to limits imposed by this chapter and shall be assigned expiration
dates.
Sec. 30. If upon audit or examination of the results of an audit
of a political subdivision, the state board of accounts determines
that:
(1) funds have been improperly accounted or budgeted for in
order to avoid the limitations imposed by this chapter;
(2) funds have been improperly exempted from the limitations
as provided in this chapter;
(3) general governmental functions have been improperly
financed by user or service charges; or
(4) the limitations imposed by this chapter have been
exceeded;
the state board of accounts shall notify the department of local
government finance and the political subdivision through the
appropriate officer or officers of necessary corrective action. If
after a reasonable time the political subdivision has not corrected
the deficiency, the state board of accounts shall refer the matter to
the attorney general.
Chapter 3. Adoption of Budget
Sec. 1. The definitions in IC 21-10-2 apply throughout this
chapter.
Sec. 2. Not later than November 1 of each year, the department
of local government finance shall send a certified statement to each
county auditor:
(1) estimating the expenditure limit for each political
subdivision in the county; and
(2) computing the total amount of money that is available for
distribution under IC 6-10 to the political subdivisions in the
county for the last six (6) months of the current year and the
next budget year.
Sec. 3. (a) Before December 2 of each year, the county auditor
shall send a certified statement, under the seal of the board of
county commissioners, to the fiscal officer of each political
subdivision of the county and the department of local government
finance. The statement shall contain the expenditure limit for the
political subdivision and an estimate of the revenues to be
distributed to the political subdivision during:
(1) the last six (6) months of the current budget year; and
(2) the next budget year.
(b) The fiscal officer of each political subdivision shall present
the county auditor's statement to the proper officers of the political
subdivision.
Sec. 4. When formulating an annual budget estimate, the proper
officers of a political subdivision shall prepare an estimate of the
revenue that the political subdivision will receive from the state for
and during the year for which the budget is being formulated.
These estimated revenues shall be shown in the budget estimate
and shall be taken into consideration in calculating any tax that
will be imposed in the ensuing budget year.
Sec. 5. (a) The proper officers of a political subdivision shall
formulate its estimated budget on the form prescribed by the state
board of accounts.
(b) The political subdivision shall give notice to taxpayers of the
estimated budget. In the notice, the political subdivision shall also
state the time and place at which a public hearing will be held on
these items. The notice shall be published two (2) times in
accordance with IC 5-3-1 with the first publication at least ten (10)
days before the date fixed for the public hearing.
(c) The county auditor shall estimate the amount necessary to
meet the cost of:
(1) township assistance in each township of the county; and
(2) meeting the obligations of each allocation district in the
county that, before July 1, 2005, were payable from the levy
of property taxes;
for the ensuing budget year and publish with the county budget the
estimated amount for each township and allocation district. The
amount, if approved by the department of local government
finance, shall be treated as the distribution of the allocation
district.
(d) Except as provided for the adoption of a supplemental
budget, the officers of a political subdivision may not fix a budget
that exceeds the amount published by the political subdivision. The
portion of a budget that exceeds the published amount is void.
Sec. 6. (a) The officers of political subdivisions shall meet each
year to fix the budget of their respective subdivisions for the
ensuing budget year not later than March 1, with notice given by
the same board. The public hearing required by section 5 of this
chapter must be completed at least seven (7) days before the proper
officers of the political subdivision meet to fix the budget.
(b) Not later than March 15, a political subdivision shall file
with the county auditor two (2) copies of the budget adopted by the
political subdivision for the ensuing budget year. Each year the
county auditor shall present these items to the county board of tax
adjustment at the board's first meeting.
Sec. 7. (a) The county board of tax adjustment shall review the
budget of each political subdivision. The board shall revise or
reduce, but not increase, a budget in order to limit the budget to
the:
(1) expenditure limit under IC 21-10-2 or any other limitation
on expenditures set by statute; and
(2) amount of revenue to be available in the ensuing budget
year.
(b) The county board of tax adjustment shall make a revision or
reduction in a political subdivision's budget only with respect to
the total amounts budgeted for each office or department within
each of the major budget classifications prescribed by the state
board of accounts.
(c) If the county board of tax adjustment makes a revision or
reduction in a budget, it shall file with the county auditor a written
order that indicates the action taken. If the board reduces the
budget, it shall indicate the reason for the reduction in the order.
The chairman of the county board shall sign the order.
Sec. 8. If the boundaries of a political subdivision cross one (1)
or more county lines, the budget fixed by the political subdivision
shall be filed with the county auditor of each affected county in the
manner prescribed in section 6 of this chapter. The board of tax
adjustment of the county that contains the largest portion of the
general money receivable by the political subdivision has
jurisdiction over the budget to the same extent as if the property
taxable by the political subdivision were wholly within the county.
The secretary of the county board of tax adjustment shall notify
the county auditor of each affected county of the action of the
board. Appeals from actions of the county board of tax adjustment
may be initiated in any affected county.
Sec. 9. (a) If the county board of tax adjustment determines that
a fiscal emergency exits, the county board shall file its written
recommendations in duplicate with the county auditor. The board
shall include with its recommendations information that the county
board considers relevant to the matter.
(b) The county auditor shall send one (1) copy of the county
board's recommendations to the department of local government
finance and shall retain the other copy in the county auditor's
office. The department of local government finance shall, in the
manner prescribed in section 17 of this chapter, review the budgets
of each political subdivision.
Sec. 10. (a) The county board of tax adjustment shall complete
the duties assigned to it under this chapter before April 2 of each
year.
(b) If the county board of tax adjustment fails to complete the
duties assigned to it within the time prescribed in this section, the
county auditor shall carry out the duties of the county board.
(c) When the county auditor acts under subsection (b), the
county auditor shall send a certificate notice of actions taken by the
county auditor to each political subdivision of the county. The
county auditor shall send these notices within five (5) days after
publication of the notice required by section 13 of this chapter.
(d) When the county auditor acts under subsection (b), the
action shall be treated as if it were the action of the county board
of tax adjustment.
Sec. 11. The county auditor shall certify the budget of a political
subdivision in the county to the department of local government
finance, if the budget, as approved or modified by the county board
of tax adjustment, exceeds the:
(1) expenditure limit under IC 21-10-2 or any other limitation
on expenditures set by statute; or
(2) amount of revenue to be available in the ensuing budget
year.
Sec. 12. The budget of a political subdivision, as approved or
modified by the county board of tax adjustment, is final unless:
(1) action is taken by the county auditor in the manner
provided under section 11 of this chapter;
(2) the action of the county board is subject to review by the
department of local government finance under section 9 or 11
of this chapter; or
(3) an appeal to the department of local government finance
is initiated with respect to the budget.
Sec. 13. When the budgets are approved or modified by the
county board of tax adjustment, the county auditor shall within
fifteen (15) days prepare a notice of proposed changes in tax rates
to be charged in the ensuing budget year in each taxing district.
The notice shall also inform the taxpayers of the manner in which
they may initiate an appeal of the county board's action. The
county auditor shall post the notice at the county courthouse and
publish it in two (2) newspapers that represent different political
parties and have a general circulation in the county. However, if
only one (1) newspaper of general circulation is published in the
county, the county auditor shall publish the notice in that
newspaper.
Sec. 14. Ten (10) or more taxpayers may initiate an appeal from
the county board of tax adjustment's action on a political
subdivision's budget by filing a statement of their objections with
the county auditor. The statement must be filed within ten (10)
days after the publication of the notice required by section 13 of
this chapter. The statement shall specifically identify the provisions
of the budget to which the taxpayers object. The county auditor
shall forward the statement, with the budget, to the department of
local government finance.
Sec. 15. The county auditor shall initiate an appeal to the
department of local government finance if the county board of tax
adjustment reduces a township assistance tax rate below the rate
necessary to meet the estimated cost of township assistance.
Sec. 16. A political subdivision may appeal to the department of
local government finance for an increase in its budget as fixed by
the county board of tax adjustment or the county auditor. To
initiate the appeal, the political subdivision must file a statement
with the board within ten (10) days after publication of the notice
required by section 13 of this chapter. The legislative body of the
political subdivision must authorize the filing of the statement by
adopting a resolution. The resolution must be attached to the
statement of objections, and the statement must be signed by the
highest executive officer and by the presiding officer of the
legislative body.
Sec. 17. (a) Subject to the limitations and requirements
prescribed in this section, the department of local government
finance may revise, reduce, or increase a political subdivision's
budget that the board reviews under section 9 or 11 of this chapter.
(b) Subject to the limitations and requirements in this section,
the department of local government finance may review, revise,
reduce, or increase the budget of any political subdivision whose
budget is the subject of an appeal initiated under this chapter.
(c) Before the department of local government finance reviews,
revises, reduces, or increases a political subdivision's budget under
this section, the board must hold a public hearing on the budget.
The board shall hold the hearing in the county in which the
political subdivision is located. The board may consider the
budgets of several political subdivisions at the same public hearing.
At least five (5) days before the date fixed for a public hearing, the
board shall give notice of the time and place of the hearing and of
the budgets to be considered at the hearing. The board shall
publish the notice in two (2) newspapers of general circulation
published in the county. However, if only one (1) newspaper of
general circulation is published in the county, the board shall
publish the notice in that newspaper.
(d) The department of local government finance may not
increase a political subdivision's budget to an amount that exceeds
the amount originally fixed by the political subdivision. The
department of local government finance shall give the political
subdivision written notification specifying any revision, reduction,
or increase that the department of local government finance
proposes. The political subdivision has one (1) week from the date
the political subdivision receives the notice to provide a written
response to the department of local government finance'
Indianapolis office specifying how to make the required reductions
in the amount budgeted for each office or department. The
department of local government finance shall make reductions as
specified in the political subdivision's response if the response is
provided as required by this subsection and sufficiently specifies all
necessary reductions. The department of local government finance
may make a revision, reduction, or increase in a political
subdivision's budget only in the total amounts budgeted for each
office or department within each of the major budget
classifications prescribed by the state board of accounts.
(e) The department of local government finance may not
approve an appropriation for lease payments by a political
subdivision if the lease payments are payable to a building
corporation for use by the building corporation for debt service on
bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available
funds on hand to redeem all outstanding bonds payable from
the particular lease rental levy requested.
(f) The action of the department of local government finance on
a budget is final. The board shall certify its action to:
(1) the county auditor; and
(2) the political subdivision if the state board acts under an
appeal initiated by the political subdivision.
(g) The department of local government finance shall complete
the duties assigned to it under this section not later than May 1 of
each year.
Sec. 18. The department of local government finance may at any
time increase the budget of a political subdivision for the following
reasons:
(1) To pay the principal or interest upon a funding, refunding,
or judgment funding obligation of a political subdivision.
(2) To pay the interest or principal upon an outstanding
obligation of the political subdivision.
(3) To pay a judgment rendered against the political
subdivision.
(4) To pay lease rentals that have become an obligation of the
political subdivision under IC 21-5-11 or IC 21-5-12.
Sec. 19. (a) Except as provided in subsection (b), a political
subdivision may not expend funds that it has received from the
state and that it is required to include in its budget estimate unless
the funds have been:
(1) included in a budget estimate by the political subdivision;
and
(2) appropriated by the proper officers of the political
subdivision in the amounts and for the specific purposes for
which they may be used.
(b) In the event of a casualty, an accident, or an extraordinary
emergency, the proper officers of a political subdivision may use
state funds to make an additional appropriation under
IC 21-10-4-1.
Chapter 4. Supplemental Budget; Miscellaneous Provisions
Sec. 1. If the proper officers of a political subdivision desire to
appropriate more money for a particular year than the amount
prescribed in the budget for that year as finally determined under
this article, they shall give notice of the proposed additional
appropriation. The notice shall state the time and place of a public
hearing on the proposal. The notice shall be given once in
accordance with IC 5-3-1-2(b).
Sec. 2. If the additional appropriation by the political
subdivision is made from a fund that receives general money, the
political subdivision must report the additional appropriation to
the department of local government finance. Section 5 of this
chapter applies to the political subdivision only if the additional
appropriation is made from a fund described under this subsection.
Sec. 3. A political subdivision may make an additional
appropriation without approval of the department of local
government finance if the additional appropriation is made from
a fund that is not described under section 2 of this chapter.
However, the fiscal officer of the political subdivision shall report
the additional appropriation to the department of local
government finance.
Sec. 4. After the public hearing, the proper officers of the
political subdivision shall file a certified copy of the final proposal
and other relevant information to the department of local
government finance.
Sec. 5. (a) When the department of local government finance
receives a certified copy of a proposal for an additional
appropriation under section 4 of this chapter, the board shall
determine whether sufficient funds are available or will be
available for the proposal. The determination shall be made in
writing and sent to the political subdivision not more than fifteen
(15) days after the board receives the proposal.
(b) In making the determination under subsection (a), the board
shall limit the amount of the additional appropriation to revenues
available, or to be made available, that have not been previously
appropriated.
(c) If the department of local government finance disapproves
an additional appropriation under subsection (a), the department
of local government finance shall specify the reason for its
disapproval on the determination sent to the political subdivision.
(d) A political subdivision may request a reconsideration of a
determination of the department of local government finance
under this section by filing a written request for reconsideration.
A request for reconsideration must:
(1) be filed with the department of local government finance
within fifteen (15) days after the receipt of the determination
by the political subdivision; and
(2) state with reasonable specificity the reason for the request.
The department of local government finance must act on a request
for reconsideration within fifteen (15) days of receiving the
request.
Sec. 6. (a) The proper officers of a political subdivision may
transfer money from one (1) major budget classification to another
within a department or office if:
(1) they determine that the transfer is necessary;
(2) the transfer does not require the expenditure of more
money than the total amount set out in the budget as finally
determined under this article;
(3) the transfer is made at a regular public meeting and by
proper ordinance or resolution; and
(4) the transfer is certified to the county auditor.
(b) A transfer may be made under this section without notice
and without the approval of the department of local government
finance.
Sec. 7. The appropriating body of a political subdivision may
appropriate funds received from an insurance company if:
(1) the funds are received as a result of damage to property of
the political subdivision; and
(2) the funds are appropriated for the purpose of repairing or
replacing the damaged property.
However, this section applies only if the funds are in fact expended
to repair or replace the property within the twelve (12) month
period after they are received.
Sec. 8. Notwithstanding the other provisions of this chapter, the
proper officer or officers of a political subdivision may:
(1) make an appropriation with respect to a contract for the
discovery of omitted property if the contract provides that the
payment for the services performed is to be made from
charges or penalties collected on the discovered property;
(2) reappropriate money recovered from erroneous or
excessive disbursements if the error and recovery are made
within the current budget year; or
(3) refund, without appropriation, money erroneously
received.
Sec. 9. (a) If the proper officers of a political subdivision make
an appropriation for an item that exceeds the amount they are
permitted to appropriate under this chapter, they are guilty of
malfeasance in office and are liable to the political subdivision in
an amount equal to the sum of one hundred twenty-five percent
(125%) of the excess appropriated and court costs.
(b) Upon the relation of a taxpayer who owns property that is
located in the political subdivision, the appropriate prosecuting
attorney shall initiate an action in the name of the state to recover
the amount for which the proper officers of the political
subdivision are liable under this section.
Sec. 10. Except as otherwise provided in this chapter, the proper
officers of a political subdivision shall appropriate funds in such a
manner that the expenditures for a budget year do not exceed the
budget for that budget year as finally determined under this
article.
Sec. 11. A unit may appropriate money to repay an obligation
of an allocation district.
Chapter 5. State Emergency Reserve Fund
Sec. 1. (a) The state emergency reserve fund is established. The
budget agency shall administer the fund. Money in the fund at the
end of a state fiscal year does not revert to the state general fund.
(b) An account in the state emergency reserve fund is
established for each political subdivision.
(c) During each budget year, without an appropriation, the
political subdivision shall transfer to the state for deposit in the
state emergency reserve fund all money that is received by the
political subdivision in excess of the lesser of the:
(1) expenditure limit; or
(2) budget;
of the political subdivision.
(d) A political subdivision may appropriate other money for
deposit in the emergency reserve fund.
Sec. 2. Deposits in an account of the emergency reserve fund
shall be made at the end of each quarter based on projections of
general money and the expenditure limit. A political subdivision
may transfer money out of the political subdivision's account in the
state emergency reserve fund as approved by the department of
local government finance.
Sec. 3. A political subdivision may receive money from the
political subdivision's account in the state emergency reserve fund
only to meet a fiscal emergency, as determined and approved
under IC 21-10-2.
Sec. 4. Except as ordered by the department of local government
finance, a political subdivision shall maintain a balance of at least
five percent (5%) of the amount budgeted for the latest budget
approved by the department of local government finance in the
political subdivision's account in the fund.
Chapter 6. Bonding Limit
Sec. 1. As used in this chapter, "average total revenue" means
the result determined under sections 2 through 5 of this chapter.
Sec. 2. Except as provided in sections 4 and 5 of this chapter, the
average total revenue of a political subdivision is equal to the result
determined under STEP THREE of the following formula:
STEP ONE: Determine, for each of the three (3) budget years
immediately preceding the budget year in which the political
subdivision will incur a debt, the total receipts:
(A) received by a political subdivision, including
distributions from the state but excluding the proceeds
from loans, the sale of property, the sale of bonds, or the
issuance of other debt; and
(B) available to pay the expenditures of the political
subdivision, including repayment of principal and interest
on debt.
STEP TWO: Determine the sum of the amounts determined
under STEP ONE.
STEP THREE: Divide the amount determined under STEP
TWO by three (3).
Sec. 3. Funds dedicated to a particular purpose may be included
in the computation of average total revenue only to the extent that
the funds are or may be pledged to repay any part of the debt of a
political subdivision.
Sec. 4. The department of local government finance shall
compute an average total revenue for a political or municipal
subdivision that may issue debt less than three (3) budget years
after the political subdivision is established based on an estimate of
the receipts that the political subdivision will receive in the first full
budget years after the debt is incurred.
Sec. 5. A political subdivision may include in the computation of
average total revenue an amount that is:
(1) equal to an estimate of what the political subdivision will
receive from a state distribution, tax, or fee that was not
collected in any of the three (3) budget years preceding the
budget year in which the political subdivision incurs a debt
but is pledged to repay a debt; and
(2) approved by the department of local government finance.
Sec. 6. A political subdivision may not become indebted, in any
manner or for any purpose to an amount that, in total, would result
in payments of principal and interest in any year over the term of
all debt that exceeds twenty percent (20%) of the average total
revenues of the political subdivision previous to the incurring of
the indebtedness.
Sec. 7. Subject to sections 8 and 9 of this chapter, all bonds or
obligations of a political subdivision in excess of the amount
determined under section 6 of this chapter are void.
Sec. 8. In time of war, foreign invasion, or other great public
calamity, on petition of a majority of the property owners in
number and value within the limits of a political subdivision, the
public authorities, in their discretion, may incur obligations
necessary for the public protection and defense to an amount as
may be requested in petition.
Sec. 9. This chapter does not release or extinguish the debt of a
political subdivision that has debt on July 1, 2005, exceeding the
maximum debt limit allowed under section 6 of this chapter.
However, the political subdivision may not incur additional debt
that will increase the total debt of the political subdivision until the
political subdivision is in compliance with section 6 of this chapter.
Chapter 7. Repayment of Bonds; Lease Agreements
Sec. 1. This chapter applies to a bond or lease agreement that:
(1) was issued or entered into before July 1, 2005, and for
which property tax levies were pledged to make payments
coming due after June 30, 2005; and
(2) is not by the terms of the bonds or lease agreement
repayable solely from a specific source of revenue other than
property taxes.
Sec. 2. The holder of an obligation may file an action in a court
with jurisdiction in the county where the principal office of the
political subdivision is located to mandate a political subdivision to
pay an obligation that is in default.
Sec. 3. A court order under section 2 of this chapter may require
the political subdivision to pay an obligation that is in default
before making other expenditures from funds available to the
political subdivision, except funds held in trust or received on
condition that the funds be used only for a particular purpose that
is inconsistent with the repayment of the obligation.
Sec. 4. A court order under section 2 of this chapter may require
the state to make payments to the holders of an obligation that is
in default of:
(1) distributions under IC 6-3.5-10, IC 21-3-1.7-9, or another
law to which a political subdivision would otherwise be
entitled; or
(2) money in the political subdivision's account of the state
emergency reserve fund.
A payment made under this section to satisfy an obligation of a
political subdivision reduces the amount of the distribution that the
state is obligated to pay to the political subdivision.
Chapter 8. Replacement of Property Tax Levies in Allocation
Areas
Sec. 1. (a) This section applies to allocation areas established
under the following statutes only to the extent that the elimination
of the property tax levy for a school corporation adversely affects
the holders of bonds or other contractual obligations that became
payable from allocated tax proceeds in the allocation area before
July 1, 2005, in a way that creates a reasonable expectation that the
bonds or other contractual obligations will not be paid when due:
IC 8-22-3.5-9
IC 36-7-14-30
IC 36-7-14-32
IC 36-7-14-39
IC 36-7-14-41
IC 36-7-14-43
IC 36-7-14.5-12.5
IC 36-7-15.1-20
IC 36-7-15.1-22
IC 36-7-15.1-26
IC 36-7-15.1-29
IC 36-7-15.1-30
IC 36-7-30-25.
(b) An allocation area located within the boundaries of a school
corporation is eligible for a distribution of money that would
otherwise be distributed to a school corporation under
IC 21-3-1.7-9. The amount of the distribution is equal to the lesser
of the amount necessary to pay the amount due in a budget year to
the holders of the bond or other contractual obligations or the
amount determined under subsection (c). The distribution to a
school corporation under IC 21-3-1.7-9 shall be reduced by the
amount distributed to an allocation area under this subsection.
(c) The maximum amount distributable to an allocation area in
a school corporation is equal to the result determined under STEP
THREE of the following formula:
STEP ONE: Determine the result of five-tenths (0.5)
multiplied by the amount distributed to a school corporation
in a budget year under IC 21-3-1.7-9.
STEP TWO: Divide the STEP ONE result by the assessed
valuation of tangible property in the area within the school
corporation.
STEP THREE: Multiply the STEP TWO result by the
assessed valuation attributable to the allocation area that is
also in the school corporation.
(d) Amounts distributable to an allocation area under
subsection (c) shall be distributed to the county auditor at the same
time as other distributions are made under IC 21-3-1.7-9.
Sec. 2. (a) An economic development district that is located in
one (1) or more taxing districts in a county qualifies the county and
the taxpayers in the taxing districts for an additional distribution
under this section if the following requirements are met:
(1) The economic development district was established under
IC 6-1.1-39.
(2) The economic development district was established before
January 1, 1988.
(3) The additional distributions and credits for the economic
development district were approved by the department of
commerce before January 1, 1988.
(b) The amount of the distribution under subsection (a) is the
amount determined under STEP FOUR of the following formula:
STEP ONE: Determine the result of five-tenths (0.5)
multiplied by the amount distributed to a school corporation
in a budget year under IC 21-3-1.7-9.
STEP TWO: Divide the STEP ONE result by the assessed
valuation of tangible property in the area within the school
corporation.
STEP THREE: Multiply the STEP TWO result by the
assessed valuation attributable to the allocation area.
STEP FOUR: Multiply the STEP THREE result by
two-tenths (0.2).
(c) The amount determined under subsection (b) shall be
certified and distributed in the same manner as additional
distributions under IC 6-1.1-21-3(c) and IC 6-1.1-21-4(a)(2).
Chapter 9. Review of Bonds and Leases
Sec. 1. This chapter does not apply to temporary loans made in
anticipation of and to be paid from current revenues of the political
subdivision receivable and in the course of collection for the fiscal
year in which the loans are made.
Sec. 2. A school corporation may not incur bond indebtedness,
enter into a lease rental agreement, or repay from the debt service
fund loans made for the purchase of school buses under
IC 20-9.1-6-5 unless the school corporation has first obtained the
department of local government finance's approval of the lease
rental agreement, bond issue, or school bus purchase loan.
Sec. 3. The department of local government finance may
approve, disapprove, or modify then approve a school
corporation's proposed lease rental agreement, bond issue, or
school bus purchase loan.
Sec. 4. The department of local government finance shall render
a decision not more than three (3) months after the date it receives
a request for approval under subsection (a). However, the
department of local government finance may extend this three (3)
month period by an additional three (3) months if, at least ten (10)
days before the end of the original three (3) month period, the
board sends notice of the extension to the executive officer of the
school corporation.
Sec. 5. The department of local government finance may not
approve a school corporation's proposed lease rental agreement or
bond issue to finance the construction of additional classrooms
unless the school corporation first:
(1) establishes that additional classroom space is necessary;
and
(2) conducts a feasibility study, holds public hearings, and
hears public testimony on using a twelve (12) month school
term (instead of the nine (9) month school term (as defined in
IC 20-10.1-2-2)) rather than expanding classroom space.
Sec. 6. (a) If the proper officers of a school corporation decide
to issue bonds in a total amount that exceeds five thousand dollars
($5,000), they shall give notice of the decision by:
(1) posting; and
(2) publication once each week for two (2) weeks.
The notice required by this section shall be posted in three (3)
public places in the school corporation and published in
accordance with IC 5-3-1-4. The decision to issue bonds may be a
preliminary decision.
(b) Ten (10) or more taxpayers who will be affected by the
proposed issuance of the bonds and who wish to object to the
issuance on the grounds that it is unnecessary or excessive may file
a petition in the office of the auditor of the county in which the
school corporation is located. The petition must be filed within
fifteen (15) days after the notice required by subsection (a) of this
section is given, and it must contain the objections of the taxpayers
and facts that show that the proposed issue is unnecessary or
excessive. When taxpayers file a petition in the manner prescribed
in this subsection, the county auditor shall immediately forward a
certified copy of the petition and other relevant information to the
department of local government finance.
Sec. 7. (a) Upon receipt of a certified petition filed in the manner
prescribed in section 6(b) of this chapter, the department of local
government finance shall fix a date, time, and place for a hearing
on the matter. The state board shall hold the hearing not less than
five (5) or more than thirty (30) days after the board receives the
petition, and the state board shall hold the hearing in the school
corporation or in the county where the school corporation is
located. At least five (5) days before the date fixed for the hearing,
the department of local government finance shall give notice of the
hearing, by mail, to the executive officer of the political subdivision
and to the first ten (10) taxpayers who signed the petition. The
mailings shall be addressed to the officer and the taxpayers at their
usual place of residence.
(b) After the hearing required by this section, the department of
local government finance may approve, disapprove, or reduce the
amount of the proposed issue. The board must render a decision
not later than three (3) months after the hearing, and if no decision
is rendered within that time, the issue is considered approved
unless the board takes the extension provided for in this section.
However, a three (3) month extension of the period during which
the decision must be rendered may be taken by the board if the
board gives notice by mail of the extension to the executive officer
of the school corporation and to the first ten (10) taxpayers who
signed the petition at least ten (10) days before the end of the
original three (3) month period. If no decision is rendered within
the extension period, the issue is considered approved. The action
taken by the department of local government finance on the
proposed issue is final.
Sec. 8. When the proper officers of a school corporation decide
to issue any bonds, notes, or warrants that will be payable from
property taxes and will bear interest in excess of eight percent
(8%) per annum, the school corporation shall submit the matter to
the department of local government finance for review. The board
may either approve or disapprove the rate of interest.
Sec. 9. (a) When the proper officers of a school corporation
decide to issue bonds payable from property taxes to finance a
public improvement, they shall adopt an ordinance or resolution
that sets forth their determination to issue the bonds. Except as
provided in subsection (b), the school corporation may not
advertise for or receive bids for the construction of the
improvement until the expiration of the later of:
(1) the period within which taxpayers may file a petition for
review of or a remonstrance against the proposed issue; or
(2) the period during which a petition for review of the
proposed issue is pending before the department of local
government finance.
(b) When a petition for review of a proposed issue is pending
before the department of local government finance, the board may
order the school corporation to advertise for and receive bids for
the construction of the public improvement. When the board issues
an order, the school corporation shall file a bid report with the
department of local government finance within five (5) days after
the bids are received, and the board shall render a final decision on
the proposed issue within fifteen (15) days after it receives the bid
report. Notwithstanding the provisions of this subsection, a school
corporation may not enter into a contract for the construction of
a public improvement while a petition for review of the bond issue
that is to finance the improvement is pending before the
department of local government finance.
SOURCE: IC 22-5-6-9; (04)IN1312.1.273. -->
SECTION 273. IC 22-5-6-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006]: Sec. 9. Any school corporation that offers an
institutional farm training program in any high school to veterans
under 38 U.S.C. 1601 et seq. may accept tuition fees from any
students to be paid by such student from any allotment for tuition
fees received by the student from the United States Department of
Veterans Affairs.
SOURCE: IC 23-13-5-8; (04)IN1312.1.274. -->
SECTION 274. IC 23-13-5-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 8. (a) Should for
any cause any action of the board of directors or trustees of a
corporation be invalid or ineffective in whole or in part as and for a
cancellation or retirement of capital stock as provided in this chapter,
then the entire act of cancellation or retirement as to all other stock
shall be held null and void. If at any time after the transfer of any stock
to the corporation or to the trustees or directors it becomes no longer
possible for the corporation to operate the university, college, or
institution of learning as a university, college, or institution of learning,
and the fact is found to exist by the board of trustees or directors, the
property and assets of the corporation vest in and belong absolutely to
the local public school corporation within whose territorial limits the
college, university, or institution of learning is situated unless the local
public school corporation elects to refuse to accept the property and
assets in writing served upon the board of trustees or an officer thereof
within one hundred twenty (120) days. If the local public school
corporation elects to refuse to accept the property and assets, then the
property and assets of the corporation vest in and belong absolutely to
the county within whose territorial limits the college, university, or
institution of learning is situated unless the county, acting by its
legislative body, elects to refuse to accept the property and assets in
writing served upon the board of trustees or an officer within one
hundred twenty (120) days. If the county refuses to accept the property
and assets, the property and assets vest in and belong absolutely to the
common school fund of the state of Indiana. If the university, college,
or institution of learning is situated in a school township, the election
shall be made by the township executive with the approval of the
township legislative body. If situated in a school city or town
corporation, the election shall be made by the school board of the
municipality.
(b) The local school corporation receiving the property or assets is
responsible for the payment of the lawful debts and liabilities of the
corporation. For the purpose of raising funds to pay the debts and
liabilities, the township executive, with the concurrence and sanction
of the township legislative body, or the city or town school board, as
the case may be, is authorized and empowered to issue and sell bonds
of the school township, school city, or school town. The debt created
by the bonds, together with all other indebtedness of the school
corporation, may not exceed two percent (2%) of the adjusted value of
the taxable property within the school corporation as determined under
IC 36-1-15. If the building or property of the corporation vested in the
school corporation is suitable for instructing students of the township
in the arts of agriculture, domestic science, or physical or practical
mental culture, and in which to hold school or civic entertainments or
be used for township, town, or city purposes, then the township
executive, with the concurrence and sanction of the township, city, or
town legislative body, as the case may be, is authorized and empowered
to issue and sell bonds of the civil township, city, or town, as the case
may be, and apply the proceeds to the payment of the debts and
liabilities of the corporation. The proceeds of the bonds, together with
all other indebtedness of the civil township, city, or town, may not
exceed two percent (2%) of the adjusted value of the taxable property
within the civil township, city, or town, as determined under
IC 36-1-15. If the county receives the property, it is authorized to issue
its general obligation bonds to pay the debts and liabilities as general
obligation bonds of counties are issued under the general law. Unless
the school and civil townships and school and civil cities and towns can
liquidate the debts and liabilities without violating Article 13, Section
1 of the Constitution of the State of Indiana and IC 36-1-15, they shall
elect to refuse to accept the property. Unless the county can liquidate
the debts and liabilities without violating the constitutional provision,
it shall elect to refuse the property. If a civil township, city, or town
uses its funds or the proceeds of the sale of its bonds to liquidate the
debts and liabilities, it shall have an interest in the property in the
proportion the funds expended by it bear to the funds expended by the
school township, school city, or school town.
(c) Any bonds issued under this chapter shall be payable in not more
than twenty (20) years after the date of their issuance. The municipal
corporation issuing the bonds shall annually levy a tax on all of the
taxable property within the municipal corporation in an amount
sufficient to pay the interest on and the principal of such bonds as they
mature. The bonds may mature and be payable either semiannually or
annually. Notice of sale of the bonds shall be published once each week
for two (2) weeks in a newspaper published in the municipal
corporation issuing the bonds, or in a newspaper published in the
county seat of the county in which the municipal corporation is located.
Additional notices may be published.
(d) If the corporation ceases to exist or winds up its affairs without
its board of trustees or directors finding that it is no longer possible for
the corporation to operate the university, college, or institution of
learning as a university, college, or institution of learning, this shall
have the same effect as such a finding.
SOURCE: IC 23-13-17-1; (04)IN1312.1.275. -->
SECTION 275. IC 23-13-17-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1. The county
council of the Knox County of Knox is hereby authorized to fix and
establish annually the rate of a special tax levy to be imposed on the
taxable property of such county, may appropriate money for the
support of Vincennes University. This levy shall not, however, exceed
in any year, three cents ($0.03) on each one hundred dollars ($100) of
the taxable property in said county. All revenue accruing from any tax
levy so imposed shall be paid into the county treasury as a separate and
distinct fund, and shall be paid to the proper fiduciary officer of the
university on warrant of the county auditor.
SOURCE: IC 23-13-17-2; (04)IN1312.1.276. -->
SECTION 276. IC 23-13-17-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. At the time the
county auditor of Knox County makes his regular semiannual
settlement with the proper fiduciary officer of Vincennes University for
the proceeds of the special tax levy appropriations that may be then
due the university, as provided in section 1 of this chapter, such county
auditor shall also forward to the auditor of state a certificate showing
(a) the total valuation of the taxable property of such county;
(b) the special tax rate duly established by the county council for
the support of such university for the current year; and
(c) the aggregate amount paid on behalf of such county as public
aid to such university at such semiannual settlement.
Thereupon, and semiannually thereafter, upon receipt of any such
certificate, the auditor of state shall promptly draw and forward to such
university a warrant on the treasurer of state in double the amount
shown by such certificate of said county auditor to have been paid as
public aid to the university at such semiannual settlement, which
warrant shall be charged to and paid out of the state school tuition fund.
SOURCE: IC 23-14-66-2; (04)IN1312.1.277. -->
SECTION 277. IC 23-14-66-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 2. (a) If the
legislative body is satisfied with the accuracy of the petition, it shall:
(1) record its findings at that meeting or at any regular meeting;
and
(2) subject to subsection (b), levy and collect an annual tax, as
other taxes are levied and collected, appropriate money in an
amount that it considers reasonable, to provide additional care
and maintenance for the cemetery.
(b) Taxes collected by a city or town for the care and maintenance
of a cemetery lying entirely outside of the corporate limits of the city
or town may not exceed three cents ($0.03) on each one hundred
dollars ($100) of assessed valuation of property in the city or town.
SOURCE: IC 23-14-67-3; (04)IN1312.1.278. -->
SECTION 278. IC 23-14-67-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 3. A county
cemetery commission may request the levy of an annual tax
appropriate money for the purpose of restoring and maintaining one
(1) or more cemeteries described in section 1 of this chapter that are
located in the county. The tax may not exceed fifty cents ($0.50) on
each one hundred dollars ($100) of assessed valuation of property in
the county.
SOURCE: IC 31-17-3-19; (04)IN1312.1.279. -->
SECTION 279. IC 31-17-3-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 19. Hearings and
Studies in Another State; Orders to Appear. (a) A court of this state
may request the appropriate court of another state to hold a hearing to
adduce evidence, to order a party to produce or give evidence under
other procedures of that state, or to have social studies (an investigation
and report pursuant to IC 31-17-2-12) made with respect to the custody
of a child involved in proceedings pending in the court of this state;
and to forward to the court of this state certified copies of the transcript
of the record of the hearing, the evidence otherwise adduced, or any
social studies prepared in compliance with the request. The cost of the
services may be assessed against the parties, or, if necessary, ordered
paid by the county. state.
(b) A court of this state may request the appropriate court of another
state to order a party to custody proceedings pending in the court of this
state to appear in the proceedings, and if that party has physical custody
of the child, to appear with the child. The request may state that travel
and other necessary expenses of the party and of the child whose
appearance is desired will be assessed against another party or will
otherwise be paid.
SOURCE: IC 31-31-8-3; (04)IN1312.1.280. -->
SECTION 280. IC 31-31-8-3, AS AMENDED BY P.L.273-1999,
SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 3. (a) The juvenile court may establish
juvenile detention and shelter care facilities for children, except as
provided by IC 31-31-9.
(b) The court may contract with other agencies to provide juvenile
detention and shelter care facilities.
(c) If the juvenile court operates the juvenile detention and shelter
care facilities, the judge shall appoint staff and determine the budgets.
(d) The county shall pay all expenses. The expenses for the juvenile
detention facility shall be paid from the county general fund. Payment
of the expenses for the juvenile detention facility may not be paid from
the county family and children's fund established by IC 12-19-7-3.
SOURCE: IC 31-31-8-4; (04)IN1312.1.281. -->
SECTION 281. IC 31-31-8-4, AS AMENDED BY P.L.170-2002,
SECTION 130, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 4. (a) This section applies to
a county having a population of more than one hundred ten thousand
(110,000) but less than one hundred fifteen thousand (115,000).
(b) Notwithstanding section 3 of this chapter, the juvenile court
shall operate a juvenile detention facility or juvenile shelter care
facility established in the county. However, the county legislative body
shall determine the budget for the juvenile detention facility or juvenile
shelter care facility. The expenses for the juvenile detention facility
shall be paid from the county general fund. Payment of the expenses for
the juvenile detention facility may not be paid from the county family
and children's fund established by IC 12-19-7-3.
SOURCE: IC 31-34-24-8; (04)IN1312.1.282. -->
SECTION 282. IC 31-34-24-8, AS AMENDED BY P.L.273-1999,
SECTION 101, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 8. In preparing the plan, the
team shall review and consider existing publicly and privately funded
programs that are available or that could be made available in the
county to provide supportive services to or for the benefit of children
described in section 3 of this chapter without removing the child from
the family home, including programs funded through the following:
(1) Title IV-B of the Social Security Act (42 U.S.C. 620 et seq.).
(2) Title IV-E of the Social Security Act (42 U.S.C. 670 et seq.).
(3) Title XX of the Social Security Act (42 U.S.C. 1397 et seq.).
(4) The Child Abuse Prevention and Treatment Act (42 U.S.C.
5106 et seq.).
(5) Community corrections programs under IC 11-12.
(6) Special education programs under IC 20-1-6-19.
(7) All programs designed to prevent child abuse, neglect, or
delinquency, or to enhance child welfare and family preservation
administered by, or through funding provided by, the division of
family and children, county offices, prosecutors, or juvenile
courts. including programs funded under IC 12-19-7 and
IC 31-40.
(8) Probation user's fees under IC 31-40-2-1.
(9) Child advocacy fund under IC 12-17-17.
SOURCE: IC 31-40-1-1; (04)IN1312.1.283. -->
SECTION 283. IC 31-40-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1. This article
applies to a financial burden sustained by a county or state as the result
of costs paid by the county under section 2 of this chapter, including
costs resulting from the institutional placement of a child adjudicated
a delinquent child or a child in need of services.
SOURCE: IC 31-40-1-2; (04)IN1312.1.284. -->
SECTION 284. IC 31-40-1-2, AS AMENDED BY P.L.273-1999,
SECTION 119, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 2. (a) The county state shall
pay from the county family and children's fund the cost of
(1) any services ordered by the juvenile court for any child or the
child's parent, guardian, or custodian, other than secure detention.
and
(2) (b) The county shall pay the cost of returning a child under
IC 31-37-23.
(b) (c) The county fiscal body shall provide sufficient money to
meet the court's requirements under subsection (b).
SOURCE: IC 31-40-1-3; (04)IN1312.1.285. -->
SECTION 285. IC 31-40-1-3, AS AMENDED BY P.L.273-1999,
SECTION 120, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 3. (a) A parent or guardian of
the estate of a child adjudicated a delinquent child or a child in need of
services is financially responsible as provided in this chapter (or
IC 31-6-4-18(e) before its repeal) for any services ordered by the court.
(b) Each parent of a child alleged to be a child in need of services
or alleged to be a delinquent child shall, before a dispositional hearing,
furnish the court with an accurately completed and current child
support obligation worksheet on the same form that is prescribed by the
Indiana supreme court for child support orders.
(c) At:
(1) a detention hearing;
(2) a hearing that is held after the payment of costs by a county
under section 2 of this chapter (or IC 31-6-4-18(b) before its
repeal);
(3) the dispositional hearing; or
(4) any other hearing to consider modification of a dispositional
decree;
the juvenile court shall order the child's parents or the guardian of the
child's estate to pay for, or reimburse the county or the state, as
appropriate, for the cost of services provided to the child or the parent
or guardian unless the court finds that the parent or guardian is unable
to pay or that justice would not be served by ordering payment from the
parent or guardian.
SOURCE: IC 31-40-1-5; (04)IN1312.1.286. -->
SECTION 286. IC 31-40-1-5, AS AMENDED BY P.L.273-1999,
SECTION 121, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 5. (a) This section applies
whenever the court orders or approves removal of a child from the
home of a child's parent or guardian and placement of the child in a
child caring institution (as defined in IC 12-7-2-29), a foster family
home (as defined in IC 12-7-2-90), or the home of a relative of the
child that is not a foster family home.
(b) If an existing support order is in effect, the court shall order the
support payments to be assigned to the county office for the duration
of the placement out of the home of the child's parent or guardian. The
court shall notify the court that:
(1) entered the existing support order; or
(2) had jurisdiction, immediately before the placement, to modify
or enforce the existing support order;
of the assignment and assumption of jurisdiction by the juvenile court
under this section.
(c) If an existing support order is not in effect, the court shall do the
following:
(1) Include in the order for removal or placement of the child an
assignment to the county office, or confirmation of an assignment
that occurs or is required under applicable federal law, of any
rights to support, including support for the cost of any medical
care payable by the state under IC 12-15, from any parent or
guardian who has a legal obligation to support the child.
(2) Order support paid to the county office by each of the child's
parents or the guardians of the child's estate to be based on child
support guidelines adopted by the Indiana supreme court and for
the duration of the placement of the child out of the home of the
child's parent or guardian, unless:
(A) the court finds that entry of an order based on the child
support guidelines would be unjust or inappropriate
considering the best interests of the child and other necessary
obligations of the child's family; or
(B) the county office does not make foster care maintenance
payments to the custodian of the child. For purposes of this
clause, "foster care maintenance payments" means any
payments for the cost of (in whole or in part) and the cost of
providing food, clothing, shelter, daily supervision, school
supplies, a child's personal incidentals, liability insurance with
respect to a child, and reasonable amounts for travel to the
child's home for visitation. In the case of a child caring
institution, the term also includes the reasonable costs of
administration and operation of the institution as are necessary
to provide the items described in this clause.
(3) If the court:
(A) does not enter a support order; or
(B) enters an order that is not based on the child support
guidelines;
the court shall make findings as required by 45 CFR 302.56(g).
(d) Payments in accordance with a support order assigned under
subsection (b) or entered under subsection (c) (or IC 31-6-4-18(f)
before its repeal) shall be paid through the clerk of the circuit court as
trustee for remittance to the county office.
(e) The Title IV-D agency shall establish, modify, or enforce a
support order assigned or entered by a court under this section in
accordance with IC 12-17-2 and 42 U.S.C. 654. The county office shall,
if requested, assist the Title IV-D agency in performing its duties under
this subsection.
(f) If the juvenile court terminates placement of a child out of the
home of the child's parent or guardian, the court shall:
(1) notify the court that:
(A) entered a support order assigned to the county office under
subsection (b); or
(B) had jurisdiction, immediately before the placement, to
modify or enforce the existing support order;
of the termination of jurisdiction of the juvenile court with respect
to the support order;
(2) terminate a support order entered under subsection (c) that
requires payment of support by a custodial parent or guardian of
the child, with respect to support obligations that accrue after
termination of the placement; or
(3) continue in effect, subject to modification or enforcement by
a court having jurisdiction over the obligor, a support order
entered under subsection (c) that requires payment of support by
a noncustodial parent or guardian of the estate of the child.
(g) The court may at or after a hearing described in section 3 of this
chapter order the child's parent or the guardian of the child's estate to
reimburse the county office for all or any portion of the expenses for
services provided to or for the benefit of the child that are paid from the
county family and children's fund by the county or state during the
placement of the child out of the home of the parent or guardian, in
addition to amounts reimbursed through payments in accordance with
a support order assigned or entered as provided in this section, subject
to applicable federal law.
SOURCE: IC 31-40-1-6; (04)IN1312.1.287. -->
SECTION 287. IC 31-40-1-6, AS ADDED BY P.L.273-1999,
SECTION 122, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 6. (a) The division with the
approval of the county fiscal body, may contract with any of the
following, on terms and conditions with respect to compensation and
payment or reimbursement of expenses as the division may determine,
for the enforcement and collection of any parental reimbursement
obligation established by order entered by the court under section 3 or
5(g) of this chapter:
(1) The prosecuting attorney of the county that paid the cost of the
services ordered by the court, as provided in section 2 of this
chapter.
(2) An attorney for the county office that paid the cost of services
ordered by the court, if the attorney is not an employee of the
county office or the division.
(3) An attorney licensed to practice law in Indiana.
(b) A contract entered into under this section is subject to approval
under IC 4-13-2-14.1.
(c) Any fee payable to a prosecuting attorney under a contract under
subsection (a)(1) shall be deposited in the county general fund and
credited to a separate account identified as the prosecuting attorney's
child services collections account. The prosecuting attorney may
expend funds credited to the prosecuting attorney's child services
collections account, without appropriation, only for the purpose of
supporting and enhancing the functions of the prosecuting attorney in
enforcement and collection of parental obligations to reimburse the
county family and children's fund. the county or the state.
SOURCE: IC 31-40-1-7; (04)IN1312.1.288. -->
SECTION 288. IC 31-40-1-7, AS ADDED BY P.L.273-1999,
SECTION 123, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 7.
(a) Amounts received as
payment of support or reimbursement of the cost of services paid as
provided in this chapter shall be distributed in the following manner:
(1) If any part of the cost of services was paid from federal funds
under Title IV Part E of the Social Security Act (42 U.S.C. 671 et
seq.), the amounts received shall first be applied as provided in 42
U.S.C. 657 and 45 CFR 302.52.
(2) All amounts remaining after the distributions required by
subdivision (1) shall be deposited in the family and children's
fund (established by IC 12-19-7-3) of the county that paid to the
governmental entity paying for the cost of the services.
(b) Any money deposited in a county family and children's fund
under this section shall be reported to the division, in the form and
manner prescribed by the division, and shall be applied to the child
services budget compiled and adopted by the county director for the
next state fiscal year, in accordance with IC 12-19-7-6.
SOURCE: IC 31-40-4-1; (04)IN1312.1.289. -->
SECTION 289. IC 31-40-4-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 1. If the parent or
guardian of the estate:
(1) defaults in reimbursing the county or the state; or
(2) fails to pay a fee authorized by this article;
the juvenile court may find the parent or guardian in contempt and
enter judgment for the amount due.
SOURCE: IC 32-34-1-16; (04)IN1312.1.290. -->
SECTION 290. IC 32-34-1-16, AS ADDED BY P.L.2-2002,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 16. (a) As used in section 47 of this chapter,
"political subdivision" includes any Indiana municipality, county, civil
township, civil incorporated city or town, public school corporation,
university or college supported in part by state funds, or any other
territorial subdivision of the state recognized or designated in any law,
including the following:
(1) Judicial circuits.
(2) A public utility entity not privately owned.
(3) A special taxing district or entity.
(4) A public improvement district authority or entity authorized
to levy taxes impose a tax under IC 6-3.5-9 or levy special
assessments.
(b) The term does not include any retirement system supported
entirely or in part by the state.
SOURCE: IC 36-1-2-12.5; (04)IN1312.1.291. -->
SECTION 291. IC 36-1-2-12.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 12.5. "Police and fire services"
means an expenditure or activity to which IC 36-8.5 applies.
SOURCE: IC 36-1-3-8; (04)IN1312.1.292. -->
SECTION 292. IC 36-1-3-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 8. (a) Subject to
subsection (b), a unit does not have the following:
(1) The power to condition or limit its civil liability, except as
expressly granted by statute.
(2) The power to prescribe the law governing civil actions
between private persons.
(3) The power to impose duties on another political subdivision,
except as expressly granted by statute.
(4) The power to impose a tax, except as expressly granted by
statute.
(5) The power to impose a license fee greater than that reasonably
related to the administrative cost of exercising a regulatory power.
(6) The power to impose a service charge or user fee greater than
that reasonably related to reasonable and just rates and charges
for services.
(7) The power to regulate conduct that is regulated by a state
agency, except as expressly granted by statute.
(8) The power to prescribe a penalty for conduct constituting a
crime or infraction under statute.
(9) The power to prescribe a penalty of imprisonment for an
ordinance violation.
(10) The power to prescribe a penalty of a fine as follows:
(A) More than ten thousand dollars ($10,000) for the violation
of an ordinance or a regulation concerning air emissions
adopted by a county that has received approval to establish an
air program under IC 13-17-12-6.
(B) More than two thousand five hundred dollars ($2,500) for
any other ordinance violation.
(11) The power to invest money, except as expressly granted by
statute.
(12) The power to order or conduct an election, except as
expressly granted by statute.
(13) The power to impose an ad valorem property tax,
including a special benefits tax imposed on an ad valorem
basis.
(b) A township does not have the following, except as expressly
granted by statute:
(1) The power to require a license or impose a license fee.
(2) The power to impose a service charge or user fee.
(3) The power to prescribe a penalty.
SOURCE: IC 36-1-10-17; (04)IN1312.1.293. -->
SECTION 293. IC 36-1-10-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 17. (a) A political
subdivision or agency that executes a lease under this chapter shall,
subject to subsection (d), make an annual appropriation
and tax levy at
a rate to provide sufficient money to pay the rental payable from
property taxes stipulated in the lease.
(b) The appropriation and levy are is subject to review by other
bodies that have the authority to ascertain that the levy appropriation
is sufficient to raise the amount required to pay the rental payable from
property taxes under the lease.
(c) The appropriation and levy may be reduced in any year to the
extent other money or any reimbursement under IC 36-7-14-39 are
pledged or available for the payment of the lease rental.
(d) A political subdivision or agency that executes a lease for a
transportation project may only levy a tax under this section for an
amount necessary to restore debt service reserve funds and may not
levy a tax for lease rental payments.
SOURCE: IC 36-1-2-18; (04)IN1312.1.294. -->
SECTION 294. IC 36-1-2-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 18. "Special
taxing district" means a geographic area within which a special local
government income tax or a special assessment may be levied and
collected on an ad valorem basis on property for the purpose of
financing local public improvements that are:
(1) not political or governmental in nature; and
(2) of special benefit to the residents and property of the area.
SOURCE: IC 36-1-15-3; (04)IN1312.1.295. -->
SECTION 295. IC 36-1-15-3, AS AMENDED BY P.L.90-2002,
SECTION 466, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 3. The department of local
government finance shall compute, in conjunction with the approvals
required under IC 6-1.1-18.5-8(b) and IC 6-1.1-19-8 (repealed
January 1, 2005), an adjusted value of the taxable property within
each political subdivision. The department of local government finance
may request a certification of net assessed valuation from the county
auditor in order to make a calculation under this section.
SOURCE: IC 36-1.3; (04)IN1312.1.296. -->
SECTION 296. IC 36-1.3 IS ADDED TO THE INDIANA CODE
AS A
NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]:
ARTICLE 1.3. BUDGETS
Chapter 1. Application
Sec. 1. This article applies to budgets for all budget years
beginning after December 31, 2004.
Sec. 2. This article applies to all appropriations made by a
political subdivision except:
(1) appropriations for police and fire services, if the political
subdivision has not elected to fund police and fire services
under IC 36-8.5; and
(2) appropriations from exempted sources (as defined in
IC 36-1.3-2-8).
Sec. 3. This article does not apply to school corporations.
Chapter 2. Expenditure Limitation
Sec. 1. This chapter does not apply to the part of an
appropriation that is funded from any of the following sources of
revenue:
(1) Distributions from the motor vehicle highway account
established by IC 8-14-1.
(2) Distributions from the highway, road and street fund
established by IC 8-14-2-2.1.
(3) Distributions from the pension relief fund established by
IC 5-10.3-11.
(4) Revenues received from the government of the United
States.
(5) Revenues contributed by a governmental entity described
in IC 36-1-7-1 to the political subdivision to administer an
interlocal agreement under IC 36-1-7 or another statute
providing for a joint enterprise, if the revenues were either
counted toward the expenditure limit of the political
subdivision contributing the revenues or qualified as
exempted source revenues for the political subdivision
contributing the revenues.
(6) The proceeds of:
(A) contracts with; and
(B) grants, gifts, donations, and bequests made to;
the political subdivision for a purpose specified by the
contractor or donor.
(7) User charges derived by the political subdivision from the
sale of a product or service:
(A) pledged or legally available to repay any security; or
(B) for which the quantity of the product or level of service
provided to a user is at the discretion of the user.
(8) Revenues derived from the issuance of any security.
However, this subdivision does not exempt the money pledged
to repay the principal of and interest on the security or to
establish a reserve for repayment.
(9) Revenues received from the sale of fixed assets or gains on
fixed asset transfers.
(10) Revenues raised to meet a fiscal emergency.
(11) Unexpended appropriated balances remaining in a
cumulative fund after the year in which the money was
appropriated.
(12) Property taxes imposed for police and fire services.
Sec. 2. As used in this chapter, "adjustment factor" refers to the
adjustment factor determined under section 17 of this chapter.
Sec. 3. As used in this chapter, "appropriations" refers to the
total capital or operating appropriations of a political subdivision.
The term includes the amount needed to meet the obligations of an
allocation district. The term does not include debt service
expenditures, emergency expenditures, or expenditures from an
exempted source.
Sec. 4. As used in this chapter, "base year" means:
(1) a political subdivision's first budget year beginning after
December 31, 2003, if the term is used to compute the
expenditure limit for a political subdivision that was initially
established before January 1, 2004; or
(2) the first budget year in which a political subdivision
operated for an entire budget year, if subdivision (1) does not
apply.
Sec. 5. As used in this chapter, "base year per capita
appropriations" refers to the base year per capita appropriations
of a political subdivision, as determined under section 18 of this
chapter.
Sec. 6. As used in this chapter, "estimated population" means
the total number of individuals who are residents of a political
subdivision or an allocation district, as determined under section
15 of this chapter.
Sec. 7. As used in this chapter, "expenditure limit" means the
maximum amount of appropriations that a political subdivision or
an allocation district may appropriate for a budget year, as
determined under section 19 of this chapter. The term does not
refer to actual appropriations or actual expenditures.
Sec. 8. As used in this chapter, "exempted source" means a
source of revenue exempted from the application of this chapter
under section 1 of this chapter.
Sec. 9. As used in this chapter, "fiscal emergency" means
circumstances requiring an expenditure exceeding the expenditure
limit, as determined under section 28 of this chapter.
Sec. 10. As used in this chapter, "inflation index" means the
change in the general price level of goods and services as
determined under section 16 of this chapter.
Sec. 11. As used in this chapter, "revenues" means money
received by a political subdivision or an allocation district from
interest, a tax, a penalty, a grant, a state distribution, or any other
receipt.
Sec. 12. As used in this chapter, "security" means a bond, note,
warrant, or other evidence of indebtedness, whether the bond,
note, warrant, or other evidence of indebtedness constitutes a debt
of the political subdivision or allocation district within the meaning
of Article 13, Section 1 of the Constitution of the State of Indiana.
Sec. 13. A political subdivision may not appropriate, allot, or
expend in a budget year more than an amount equal to the
expenditure limit for the political subdivision or as determined
under the latest computation made by the department of local
government finance under section 14 of this chapter before the
beginning of the budget year.
Sec. 14. (a) Not later than six (6) months before the beginning of
a political subdivision's budget year, the department of local
government finance shall make a preliminary estimate of each of
the computations required under sections 15 through 26 of this
chapter for the political subdivision.
(b) In order to:
(1) correct a clerical or computational error; or
(2) incorporate data that becomes available after the
preliminary estimate is computed under subsection (a);
the department of local government finance may adjust a
computation under sections 15 through 26 of this chapter for a
budget year at any time before the first day of the budget year.
(c) Not later than five (5) business days after the department of
local government finance computes an estimate under subsection
(a) or (b), the department of local government finance shall
distribute a copy of the estimate for a political subdivision in a
county to the political subdivision and the county auditor.
(d) If the total appropriations of a political subdivision will
exceed the latest expenditure limit computed under subsection (a)
or (b) of this chapter, the political subdivision or the department
of local government finance shall adjust the appropriations to
comply with section 13 of this chapter.
Sec. 15. The department of local government finance shall
compute an estimated population in the budget year for each
political subdivision. The estimated population shall be estimated
for the first day of the month preceding the budget year by six (6)
months using the latest available actual or estimated population
data from the United States Bureau of the Census.
Sec. 16. (a) The department of local government finance shall
compute an inflation index for each political subdivision's:
(1) base year; and
(2) next budget year.
(b) The inflation index shall be estimated for the first day of the
month preceding the budget year by six (6) months using the
implicit price deflator for the gross national product, or its closest
equivalent, which is available from the Bureau of Economic
Analysis of the United States Department of Commerce.
Sec. 17. (a) The department of local government finance shall
compute an adjustment factor for each political subdivision's:
(1) base year; and
(2) next budget year.
(b) The adjustment factor for the base year is equal to the result
in STEP THREE of the following formula:
STEP ONE: Determine the estimated population for the base
year.
STEP TWO: Determine the quotient of the inflation index for
the base year divided by one hundred (100).
STEP THREE: Multiply the STEP ONE amount by the STEP
TWO amount.
(c) The adjustment factor for a budget year after the base year
is equal to the result in STEP FOUR of the following formula:
STEP ONE: Determine the estimated population for the
budget year.
STEP TWO: Determine the quotient of:
(A) the inflation index for the budget year minus the
inflation index for the base year; divided by
(B) one hundred (100).
STEP THREE: Determine the greater of zero (0) or the STEP
TWO result.
STEP FOUR: Multiply the STEP ONE amount by the sum of
one (1) plus the STEP THREE result.
Sec. 18. The department of local government finance shall
compute a base year per capita appropriations for each political
subdivision. The base year per capita appropriations of a political
subdivision is equal to the quotient of:
(1) the total amount of appropriations actually expended by
a political subdivision in the political subdivision's base year;
divided by
(2) the adjustment factor for the base year.
Sec. 19. (a) The department of local government finance shall
compute an expenditure limit for each political subdivision.
(b) The expenditure limit for a political subdivision in a year
after the base year is the result determined under STEP TWO of
the following formula:
STEP ONE: Determine the base year per capita
appropriations of the political subdivision.
STEP TWO: Multiply the STEP ONE result by the
adjustment factor for the political subdivision's budget year.
(c) The expenditure limit for a political subdivision that has not
operated for at least one (1) full budget year is the total amount of
appropriations approved by the department of local government
finance for that year.
Sec. 20. If the Bureau of Economic Analysis of the United States
Department of Commerce, or its successor agency, changes the
base year on which it calculates the implicit price deflator for the
gross national product, the department of local government finance
shall adjust the implicit price deflator for the gross national
product used in making the calculations under this chapter to
compensate for the change in the base year.
Sec. 21. If a political subdivision transfers or accepts the
responsibility of a program or service to or from another unit of
government, the expenditure limit and the base year per capita
appropriations shall be decreased or increased correspondingly to
reflect the changes.
Sec. 22. If a program or service administered by a political
subdivision that is totally or partially funded by the federal
government ceases to be funded by the federal government, the
political subdivision may elect to fund the entire program or
service, and the expenditure limitations shall be increased to reflect
these changes.
Sec. 23. If a political subdivision transfers the funding source of
a program or service from taxes to user charges or other exempted
revenue sources as specified in this chapter, the expenditure limit
shall be decreased to reflect these changes.
Sec. 24. If a political subdivision transfers programs or services
that are funded by exempted sources to programs or services that
are funded by money subject to this chapter, the expenditure
limitation shall be increased to reflect these changes.
Sec. 25. If a political subdivision transfers revenues from
sources exempt under this chapter to funds containing revenues
from nonexempt sources, the revenues transferred shall be part of
and subject to the expenditure limit of this chapter.
Sec. 26. If a political subdivision is initially created in a county
after December 31, 2004, the expenditure limits of all political
subdivisions shall be proportionally reduced so that the sum of the
expenditure limits for all political subdivisions in the county is the
same before and after the establishment of the new political
subdivision. However, with the consent of the fiscal body of the
county and each city and town in the county, the department of
local government finance may use a different formula for adjusting
the expenditure limits of the political subdivisions in the county.
Sec. 27. With the consent of the fiscal body of each affected
political subdivision, the department of local government finance
may lower the expenditure limit of one (1) or more political
subdivisions and raise the expenditure limit of one (1) or more
other political subdivisions by the same total amount.
Sec. 28. (a) The expenditure limits as provided in this chapter
may be exceeded if:
(1) a fiscal emergency is declared by at least a two-thirds (2/3)
vote of the fiscal body of the political subdivision; and
(2) the department of local government finance approves the
declaration of a fiscal emergency.
(b) A political subdivision may petition the department of local
government finance to approve a declaration of a fiscal emergency
for the political subdivision. The petition must describe the fiscal
emergency and indicate the source of revenues that will be used to
meet the fiscal emergency. After giving at least ten (10) days notice
to the political subdivision and the county auditor for the county
containing the political subdivision and publishing at least one (1)
notice under IC 5-3-1 in the county, the department of local
government finance shall conduct a hearing concerning the
petition.
(c) After the hearing under subsection (b), the department of
local government finance shall approve a declaration of a fiscal
emergency only if the department of local government finance
determines that:
(1) an extraordinary occurrence requires immediate
expenditures; or
(2) a shortfall of revenues will result in default on the
repayment of principal or interest on an indebtedness.
(d) Payment of expenses directly related to elimination of an ad
valorem property tax system, including the costs of refinancing
bonds or leases and settling disputes related to bonds or leases,
shall be treated as a fiscal emergency. The political subdivision
shall reimburse the political subdivision's account in the state
emergency reserve fund for the distribution under the schedule
determined by the department of local government finance.
Reimbursement of the state emergency reserve fund may be
treated as a fiscal emergency.
Sec. 29. Funding for fiscal emergencies may not be included in
the appropriations base for computing the expenditure limit for
appropriations in subsequent years. Fiscal emergency
appropriations shall remain separate from appropriations subject
to expenditure limits imposed by this chapter and shall be assigned
expiration dates.
Sec. 30. If upon audit or examination of the results of an audit
of a political subdivision, the state board of accounts determines
that:
(1) funds have been improperly accounted or budgeted for in
order to avoid the limitations imposed by this chapter;
(2) funds have been improperly exempted from the limitations
as provided in this chapter;
(3) general governmental functions have been improperly
financed by user or service charges; or
(4) the limitations imposed by this chapter have been
exceeded;
the state board of accounts shall notify the department of local
government finance and the political subdivision through the
appropriate officer or officers of necessary corrective action. If
after a reasonable time the political subdivision has not corrected
the deficiency, the state board of accounts shall refer the matter to
the attorney general.
Chapter 3. Adoption of Budget
Sec. 1. This chapter applies to budget years after December 31,
2004.
Sec. 2. The definitions in IC 36-1.3-2 apply throughout this
chapter.
Sec. 3. Not later than July 1 of each year, the department of
local government finance shall send a certified statement to each
county auditor:
(1) estimating the expenditure limit for each political
subdivision in the county; and
(2) computing the total amount of money that is available for
distribution under IC 6-1.1-21-13 and IC 6-3.5-9 to the
political subdivisions in the county for the last six (6) months
of the current year and the next budget year.
Sec. 4. (a) Before August 2 of each year, a county auditor shall
send a certified statement, under the seal of the board of county
commissioners, to the fiscal officer of each political subdivision of
the county and to the department of local government finance. The
statement shall contain the expenditure limit for the political
subdivision and an estimate of the revenues to be distributed to the
political subdivision during:
(1) the last six (6) months of the current budget year; and
(2) the next budget year.
(b) The fiscal officer of each political subdivision shall present
the county auditor's statement to the proper officers of the political
subdivision.
Sec. 5. When formulating an annual budget estimate, the proper
officers of a political subdivision shall prepare an estimate of the
amount of revenue that the political subdivision will receive from
the state for and during the year for which the budget is being
formulated. These estimated revenues shall be shown in the budget
estimate and shall be taken into consideration in calculating any
tax that will be imposed in the ensuing budget year.
Sec. 6. (a) The proper officers of a political subdivision shall
formulate the political subdivision's estimated budget on the form
prescribed by the state board of accounts.
(b) The political subdivision shall give notice to taxpayers of the
estimated budget. In the notice, the political subdivision shall also
state the date, time, and place at which a public hearing will be
held on these items. The notice shall be published two (2) times in
accordance with IC 5-3-1, with the first publication at least ten (10)
days before the date fixed for the public hearing.
(c) The auditor of each county shall estimate the amount
necessary to meet the cost of:
(1) township assistance in each township of the county; and
(2) meeting the obligations of each allocation district in the
county that, before January 1, 2005, were payable from the
levy of property taxes;
for the ensuing budget year and publish with the county budget the
estimated amount for each township and allocation district. The
amount, if approved by the department of local government
finance, shall be treated as the distribution of the allocation
district.
(d) The board of directors of a solid waste management district
established under IC 13-21-3-1 may conduct the public hearing
required under subsection (b):
(1) in any county of the solid waste management district; and
(2) in accordance with the annual notice of meetings published
under IC 13-21-5-2.
(e) Except as provided for the adoption of a supplemental
budget, the officers of a political subdivision may not fix a budget
that exceeds the amount published by the political subdivision. The
portion of a budget that exceeds the published amount is void.
Sec. 7. (a) The officers of political subdivisions shall meet each
year to fix the budgets of their respective subdivisions for the
ensuing budget year as follows:
(1) The fiscal body of a county, on any date after August 15
but before September 15, with notice given by the county
auditor.
(2) The fiscal body of a consolidated city and county, not later
than the last meeting of the fiscal body in September.
(3) The fiscal body of a second class city, not later than
September 30.
(4) The fiscal body of a third class city, not later than the last
Monday in August.
(5) The fiscal body of a town, not later than the last Monday
in August.
(6) The fiscal body of a township, after July 31 and not later
than the last Tuesday in August, with notice given by the
township executive.
(7) The board of school trustees or board of school
commissioners of a school city or town, not later than the last
Thursday in August, with notice given by the same board.
(8) The board of directors of a solid waste management
district established under IC 13-21-3-1, not later than
September 15, with notice given by the same board.
(9) The proper officers of all other political subdivisions, at
the time prescribed by statute.
Except in a consolidated city and county and in a second class city,
the public hearing required by section 6 of this chapter must be
completed at least seven (7) days before the proper officers of the
political subdivision meet to fix the budget. In a consolidated city
and county and in a second class city, the public hearing by any
committee or by the entire fiscal body may be held at any time
after introduction of the budget.
(b) Each year at least two (2) days before the first meeting of the
county board of tax adjustment, a political subdivision shall file
with the county auditor two (2) copies of the budget adopted by the
political subdivision for the ensuing budget year. Each year the
county auditor shall present these items to the county board of tax
adjustment at the board's first meeting.
(c) In a consolidated city and county and in a second class city,
the clerk of the fiscal body shall, notwithstanding subsection (b),
file the adopted budget and tax ordinances with the county board
of tax adjustment within two (2) days after the ordinances are
signed by the executive, or within two (2) days after action is taken
by the fiscal body to override a veto of the ordinances, whichever
is later.
Sec. 8. (a) A county board of tax adjustment shall review the
budget of each political subdivision. The board shall revise or
reduce, but not increase, any budget in order to limit the budget to
the:
(1) expenditure limit under IC 36-1.3-2 or any other limitation
on expenditures set by statute; and
(2) amount of revenue to be available in the ensuing budget
year.
(b) The county board of tax adjustment shall make a revision or
reduction in a political subdivision's budget only with respect to
the total amount budgeted for each office or department within
each of the major budget classifications prescribed by the state
board of accounts.
(c) When the county board of tax adjustment makes a revision
or reduction in a budget, it shall file with the county auditor a
written order that indicates the action taken. If the board reduces
the budget, it shall also indicate the reason for the reduction in the
order. The chairperson of the county board shall sign the order.
Sec. 9. If the boundaries of a political subdivision cross one (1)
or more county lines, the budget fixed by the political subdivision
shall be filed with the county auditor of each affected county in the
manner prescribed in section 7 of this chapter. The board of tax
adjustment of the county that contains the largest portion of the
general money receivable by the political subdivision has
jurisdiction over the budget to the same extent as if the property
taxable by the political subdivision were wholly within the county.
The secretary of the county board of tax adjustment shall notify
the county auditor of each affected county of the action of the
board. Appeals from actions of the county board of tax adjustment
may be initiated in any affected county.
Sec. 10. (a) If the county board of tax adjustment determines
that a fiscal emergency exists, the county board shall file written
recommendations in duplicate with the county auditor. The board
shall include with the recommendations information that the
county board considers relevant to the matter.
(b) The county auditor shall forward one (1) copy of the county
board's recommendations to the department of local government
finance and shall retain the other copy in the county auditor's
office. The department of local government finance shall, in the
manner prescribed in section 18 of this chapter, review the budgets
of each political subdivision.
Sec. 11. (a) A county board of tax adjustment shall complete the
duties assigned to it under this chapter before October 2 of each
year, except that in a consolidated city and county and in a county
containing a second class city, the duties of the board need not be
completed until November 1 of each year.
(b) If the county board of tax adjustment fails to complete the
duties assigned to it within the time prescribed in this section, the
county auditor shall carry out the duties of the county board.
(c) If the county auditor acts under subsection (b), the county
auditor shall send a certificate notice of actions taken by the county
auditor to each political subdivision of the county. The county
auditor shall send these notices within five (5) days after
publication of the notice required by section 14 of this chapter.
(d) If the county auditor acts under subsection (b), the action
shall be treated as if it were the action of the county board of tax
adjustment.
Sec. 12. A county auditor shall certify the budget of a political
subdivision in the county to the department of local government
finance, if the budget, as approved or modified by the county board
of tax adjustment, exceeds the:
(1) expenditure limit under IC 36-1.3-2 or any other limitation
on expenditures set by statute; or
(2) amount of revenue to be available in the ensuing budget
year.
Sec. 13. The budget of a political subdivision, as approved or
modified by the county board of tax adjustment, is final unless:
(1) action is taken by the county auditor in the manner
provided under section 11 of this chapter;
(2) the action of the county board is subject to review by the
department of local government finance under section 10 or
12 of this chapter; or
(3) an appeal to the department of local government finance
is initiated with respect to the budget.
Sec. 14. When the budgets are approved or modified by a county
board of tax adjustment, the county auditor shall within fifteen
(15) days prepare a notice of proposed changes in tax rates to be
charged in the ensuing budget year in each taxing district. The
notice shall also inform the taxpayers of the manner in which the
taxpayers may initiate an appeal of the county board's action. The
county auditor shall post the notice at the county courthouse and
publish it in two (2) newspapers that represent different political
parties and that have a general circulation in the county.
Sec. 15. Ten (10) or more taxpayers may initiate an appeal of a
county board of tax adjustment's action on a political subdivision's
budget by filing a statement of their objections with the county
auditor. The statement must be filed within ten (10) days after the
publication of the notice required by section 14 of this chapter. The
statement shall specifically identify the provisions of the budget to
which the taxpayers object. The county auditor shall forward the
statement, with the budget, to the department of local government
finance.
Sec. 16. A county auditor shall initiate an appeal to the
department of local government finance if a county board of tax
adjustment reduces a township assistance tax rate below the rate
necessary to meet the estimated cost of township assistance.
Sec. 17. A political subdivision may appeal to the department of
local government finance for an increase in its budget as fixed by
the county board of tax adjustment or the county auditor. To
initiate the appeal, the political subdivision must file a statement
with the board within ten (10) days after publication of the notice
required by section 14 of this chapter. The legislative body of the
political subdivision must authorize the filing of the statement by
adopting a resolution. The resolution must be attached to the
statement of objections, and the statement must be signed by the
following officers:
(1) In the case of counties, by the board of county
commissioners and by the president of the county council.
(2) In the case of all other political subdivisions, by the highest
executive officer and by the presiding officer of the legislative
body.
Sec. 18. (a) Subject to the limitations and requirements
prescribed in this section, the department of local government
finance may revise, reduce, or increase a political subdivision's
budget that the board reviews under section 10 or 12 of this
chapter.
(b) Subject to the limitations and requirements prescribed in
this section, the department of local government finance may
review, revise, reduce, or increase the budget of a political
subdivision whose budget is the subject of an appeal initiated under
this chapter.
(c) Before the department of local government finance reviews,
revises, reduces, or increases a political subdivision's budget under
this section, the board must hold a public hearing on the budget.
The board shall hold the hearing in the county in which the
political subdivision is located. The board may consider the
budgets of several political subdivisions at the same public hearing.
At least five (5) days before the date fixed for a public hearing, the
board shall give notice of the time and place of the hearing and of
the budgets to be considered at the hearing. The board shall
publish the notice in two (2) newspapers of general circulation
published in the county. However, if only one (1) newspaper of
general circulation is published in the county, the board shall
publish the notice in that newspaper.
(d) The department of local government finance may not
increase a political subdivision's budget to an amount that exceeds
the amount originally fixed by the political subdivision. The
department of local government finance shall give the political
subdivision written notification specifying any revision, reduction,
or increase that the department of local government finance
proposes. The political subdivision has one (1) week from the date
the political subdivision receives the notice to provide a written
response to the department of local government finance's
Indianapolis office specifying how to make the required reductions
in the amount budgeted for each office or department. The
department of local government finance shall make reductions as
specified in the political subdivision's response if the response is
provided as required by this subsection and sufficiently specifies all
necessary reductions. The department of local government finance
may make a revision, a reduction, or an increase in a political
subdivision's budget only in the total amounts budgeted for each
office or department within each of the major budget
classifications prescribed by the state board of accounts.
(e) The department of local government finance may not
approve a levy for lease payments by a city, town, county, or
library if the lease payments are payable to a building corporation
for use by the building corporation for debt service on bonds and
if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available
funds on hand to redeem all outstanding bonds payable from
the particular lease rental levy requested.
(f) The action of the department of local government finance on
a budget is final. The department shall certify the department's
action to:
(1) the county auditor; and
(2) the political subdivision, if the department acts under an
appeal initiated by the political subdivision.
(g) The department of local government finance shall complete
the duties assigned to it under this section not later than January
15 of each year.
Sec. 19. (a) A political subdivision that in any year adopts a
proposal to establish a cumulative fund or sinking fund under any
of the following provisions must submit the proposal to the
department of local government finance before August 2 of that
year:
IC 3-11-6
IC 8-10-5
IC 8-16-3
IC 8-16-3.1
IC 8-22-3
IC 14-27-6
IC 14-33-21
IC 16-22-5
IC 16-22-8
IC 36-8-14
IC 36-9-4
IC 36-9-14
IC 36-9-14.5
IC 36-9-15
IC 36-9-15.5
IC 36-9-16
IC 36-9-17
IC 36-9-26
IC 36-9-27
IC 36-10-3
IC 36-10-4
IC 36-10-7.5.
(b) If a proposal described in subsection (a) is not submitted to
the department of local government finance before August 2 of a
year, the political subdivision may not expend money from the
cumulative fund or sinking fund in the ensuing year.
Sec. 20. The department of local government finance may at any
time increase the budget of a political subdivision for the following
reasons:
(1) To pay the principal or interest on a funding, refunding, or
judgment funding obligation of a political subdivision.
(2) To pay the interest or principal on an outstanding
obligation of the political subdivision.
(3) To pay a judgment rendered against the political
subdivision.
Sec. 21. (a) This section applies to a political subdivision that is
not a county, city, town, or township.
(b) If:
(1) the boundaries of the political subdivision are entirely
contained within a city or town; or
(2) the boundaries of the political subdivision are not entirely
contained within a city or town but the political subdivision
was originally established by the city or town;
the governing body shall submit its proposed budget to the city or
town fiscal body. The proposed budget and levy shall be submitted
at least fourteen (14) days before the city or town fiscal body is
required to hold budget approval hearings under this chapter.
(c) If subsection (b) does not apply, the governing body of the
political subdivision shall submit its proposed budget to the county
fiscal body in the county in which the taxing unit has the largest
share of its total area. The proposed budget shall be submitted at
least fourteen (14) days before the county fiscal body is required to
hold budget approval hearings under this chapter.
(d) The fiscal body of the city, town, or county, as required
under subsection (b) or (c), shall review each budget and adopt a
final budget for the political subdivision. The fiscal body may
reduce or modify but not increase the proposed budget. However,
the fiscal body may not reduce the proposed tax levy to an amount
that is less than the expenditure limit under IC 36-1.3-2.
Sec. 22. (a) Except as provided in subsections (b) and (c), a
political subdivision may not expend funds that it receives from the
state and that it is required to include in its budget estimate unless
the funds are:
(1) included in a budget estimate by the political subdivision;
and
(2) appropriated by the proper officers of the political
subdivision in the amounts and for the specific purposes for
which the funds may be used.
(b) The county council shall appropriate funds for the operation
of the county highway department for the entire ensuing budget
year for which annual appropriations are being made. The
appropriation shall be for an amount that is not less than the
greater of:
(1) seventy-five percent (75%) of the total estimated money to
be in the highway fund in the ensuing budget year; or
(2) ninety-nine percent (99%) of the total estimated money to
be in the highway fund in the ensuing budget year if the board
of county commissioners files with the county council a four
(4) year plan for the construction and improvement of county
highways and a one (1) year plan for the maintenance and
repair of county highways.
(c) In the event of a casualty, an accident, or an extraordinary
emergency, the proper officers of a political subdivision may use
state funds to make an additional appropriation under
IC 36-1.3-4-1.
Chapter 4. Supplemental Budget; Miscellaneous Provisions
Sec. 1. If the proper officers of a political subdivision desire to
appropriate more money for a particular year than the amount
prescribed in the budget for that year as determined under this
article, the officers shall give notice of the proposed additional
appropriation. The notice shall state the date, time, and place at
which a public hearing will be held on the proposal. The notice
shall be published once in accordance with IC 5-3-1-2(b).
Sec. 2. If an additional appropriation by a political subdivision
is made from a fund that receives:
(1) distributions from the motor vehicle highway account
established by IC 8-14-1-1 or the local road and street account
established by IC 8-14-2-4; or
(2) general money;
the political subdivision must report the additional appropriation
to the department of local government finance. Section 5 of this
chapter applies to the political subdivision only if the additional
appropriation is made from a fund described in this section.
Sec. 3. A political subdivision may make an additional
appropriation without approval of the department of local
government finance if the additional appropriation is made from
a fund that is not described in section 2 of this chapter. However,
the fiscal officer of the political subdivision shall report the
additional appropriation to the department of local government
finance.
Sec. 4. After a public hearing, the proper officers of a political
subdivision shall file a certified copy of the final proposal and other
relevant information to the department of local government
finance.
Sec. 5. (a) When the department of local government finance
receives a certified copy of a final proposal for an additional
appropriation under section 4 of this chapter, the board shall
determine whether sufficient funds are available or will be
available for the proposal. The determination shall be made in
writing and sent to the political subdivision within fifteen (15) days
after the board receives the proposal.
(b) In making the determination under subsection (a), the board
shall limit the amount of the additional appropriation to revenues
available or to be made available that have not been previously
appropriated.
(c) If the department of local government finance disapproves
an additional appropriation under subsection (a), the department
of local government finance shall specify the reason for its
disapproval on the determination sent to the political subdivision.
(d) A political subdivision may request a reconsideration of a
determination of the department of local government finance
under this section by filing a written request for reconsideration.
A request for reconsideration must:
(1) be filed with the department of local government finance
within fifteen (15) days of the receipt of the determination by
the political subdivision; and
(2) state with reasonable specificity the reason for the request.
The department of local government finance must act on a request
for reconsideration within fifteen (15) days of receiving the
request.
Sec. 6. (a) The proper officers of a political subdivision may
transfer money from one (1) major budget classification to another
within a department or office if:
(1) the officers determine that the transfer is necessary;
(2) the transfer does not require the expenditure of more
money than the total amount set out in the budget as
determined under this article;
(3) the transfer is made at a regular public meeting and by
proper ordinance or resolution; and
(4) the transfer is certified to the county auditor.
(b) A transfer may be made under this section without notice
and without the approval of the department of local government
finance.
Sec. 7. The appropriating body of a political subdivision may
appropriate funds received from an insurance company if:
(1) the funds are received as a result of damage to property of
the political subdivision; and
(2) the funds are appropriated for the purpose of repairing or
replacing the damaged property.
However, this section applies only if the funds are expended to
repair or replace the damaged property within the twelve (12)
month period after the funds are received.
Sec. 8. Notwithstanding other provisions of this chapter, the
proper officer or officers of a political subdivision may:
(1) make an appropriation with respect to a contract for the
discovery of omitted property if the contract provides that
payment for the services performed is to be made from taxes
or penalties collected on the discovered property;
(2) reappropriate money recovered from erroneous or
excessive disbursements if the error and recovery are made
within the current budget year; or
(3) refund, without appropriation, money erroneously
received.
Sec. 9. (a) If the proper officers of a political subdivision make
an appropriation for an item that exceeds the amount the officers
are permitted to appropriate under this chapter, the officers are
guilty of malfeasance in office and are liable to the political
subdivision in an amount equal to the sum of one hundred
twenty-five percent (125%) of the excess appropriated and court
costs.
(b) Upon the relation of a taxpayer who owns property that is
located in the political subdivision, the appropriate prosecuting
attorney shall initiate an action in the name of the state to recover
the amount for which the proper officers of the political
subdivision are liable under this section.
Sec. 10. Except as provided in this chapter, the proper officers
of a political subdivision shall appropriate funds in a manner that
the expenditures for a year do not exceed the budget for that year
as determined under this article.
Sec. 11. A unit may appropriate money to repay an obligation
of an allocation district.
Chapter 5. State Emergency Reserve Fund
Sec. 1. (a) A state emergency reserve fund is established. The
budget agency shall administer the fund. Money in the state
emergency reserve fund at the end of a state fiscal year does not
revert to the state general fund.
(b) An account in a state emergency reserve fund is established
for each political subdivision.
(c) During each budget year, without an appropriation, the
political subdivision shall transfer to the state for deposit in the
state emergency reserve fund all money that is received by the
political subdivision in excess of the lesser of the:
(1) expenditure limit; or
(2) budget;
of the political subdivision.
(d) A political subdivision may appropriate other money for
deposit in the state emergency reserve fund.
Sec. 2. Deposits in an account of the state emergency reserve
fund shall be made at the end of each quarter based on projections
of general money and the expenditure limit. A political subdivision
may transfer money from the political subdivision's account in the
state emergency reserve fund as approved by the department of
local government finance.
Sec. 3. A political subdivision may receive money from the
political subdivision's account in the state emergency reserve fund
only to meet a fiscal emergency, as determined and approved
under IC 36-1.3-2.
Sec. 4. Except as ordered by the department of local government
finance, a political subdivision shall maintain a balance of at least
ten percent (10%) of the amount budgeted for the latest budget
approved by the department of local government finance in the
political subdivision's account in the state emergency reserve fund.
Chapter 6. Bonding Limit
Sec. 1. As used in this chapter, "average total revenue" means
the result determined under sections 2 through 5 of this chapter.
Sec. 2. Except as provided in sections 4 and 5 of this chapter, the
average total revenue of a political subdivision is equal to the result
determined under STEP THREE of the following formula:
STEP ONE: Determine, for each of the three (3) budget years
immediately preceding the budget year in which the political
subdivision will incur a debt, the total receipts:
(A) received by a political subdivision, including
distributions from the state but excluding the proceeds
from loans, the sale of property, the sale of bonds, or the
issuance of other debts; and
(B) available to pay the expenditures of the political
subdivision, including repayment of principal and interest
on debt.
STEP TWO: Determine the sum of the amounts determined
under STEP ONE.
STEP THREE: Divide the amount determined under STEP
TWO by three (3).
Sec. 3. Funds dedicated to a particular purpose may be included
in the computation of average total revenue only to the extent that
the funds are or may be pledged to repay any part of the debt of a
political subdivision.
Sec. 4. The department of local government finance shall
compute an average total revenue for a political or municipal
subdivision that may issue debt less than three (3) budget years
after the political subdivision is established based on an estimate of
the receipts that the political subdivision will receive in the first full
budget years after the debt is incurred.
Sec. 5. A political subdivision may include in the computation of
average total revenue an amount that is:
(1) equal to an estimate of what the political subdivision will
receive from a tax or fee that was not collected in any of the
three (3) budget years preceding the budget year in which the
political subdivision incurs a debt but is pledged to repay a
debt; and
(2) approved by the department of local government finance.
Sec. 6. A political subdivision may not become indebted, in any
manner or for any purpose to an amount that, in total, would result
in payments of principal and interest in any year over the term of
all debt that exceeds twenty percent (20%) of the average total
revenues of the political subdivision previous to the incurring of
the indebtedness.
Sec. 7. Subject to sections 8 and 9 of this chapter, all bonds or
obligations of a political subdivision that exceed the amount
determined under section 6 of this chapter, are void.
Sec. 8. In time of war, foreign invasion, or other great public
calamity, on petition of a majority of the property owners in
number and value within the limits of such corporation, the public
authorities may incur obligations necessary for the public
protection and defense to the amount as may be requested in a
petition.
Sec. 9. This chapter does not release or extinguish the debt of a
political subdivision that has debt on January 1, 2005, exceeding
the maximum debt limit allowed under section 6 of this chapter.
However, the political subdivision may not incur an additional debt
that will increase the total debt of the political subdivision until the
political subdivision is in compliance with section 6 of this chapter.
Chapter 7. Review of Bonds and Leases
Sec. 1. This chapter does not apply to temporary loans made in
anticipation of and to be paid from current revenues of a political
subdivision receivable and in the course of collection for the fiscal
year in which the loans are made.
Sec. 2. A political subdivision may not incur bond indebtedness
or enter into a lease rental agreement unless the political
subdivision obtains the department of local government finance's
approval of the lease rental agreement or bond issue.
Sec. 3. The department of local government finance may
approve, disapprove, or modify and then approve a political
subdivision's proposed lease rental agreement or bond issue.
Sec. 4. The department of local government finance shall render
a decision not more than three (3) months after the date it receives
a request for approval under section 2 of this chapter. However,
the department of local government finance may extend the three
(3) month period by an additional three (3) months if, at least ten
(10) days before the end of the original three (3) month period, the
board sends notice of the extension to the executive officer of the
political subdivision.
Sec. 5. (a) If the proper officers of a political subdivision decide
to issue bonds in an amount that exceeds five thousand dollars
($5,000), the officers shall give notice of the decision by:
(1) posting; and
(2) publishing once each week for two (2) weeks.
The notice required by this section shall be posted in three (3)
public places in the political subdivision and published in
accordance with IC 5-3-1-4. The decision to issue bonds may be a
preliminary decision.
(b) Ten (10) or more taxpayers who will be affected by the
proposed issuance of the bonds and who wish to object to the
issuance on the grounds that it is unnecessary or excessive may file
a petition in the office of the auditor of the county in which the
political subdivision is located. The petition must be filed within
fifteen (15) days after the notice required by subsection (a) of this
section is given, and the petition must contain the objections of the
taxpayers and facts that show that the proposed issue is
unnecessary or excessive. When taxpayers file a petition in the
manner prescribed in this subsection, the county auditor shall
immediately forward a certified copy of the petition and other
relevant information to the department of local government
finance.
Sec. 6. (a) Upon receipt of a certified petition filed in the manner
prescribed in section 5(b) of this chapter, the department of local
government finance shall fix a time and place for a hearing on the
matter. The state board shall hold the hearing not less than five (5)
or more than thirty (30) days after the board receives the petition,
and the state board shall hold the hearing in the political
subdivision or in the county in which the political subdivision is
located. At least five (5) days before the date fixed for the hearing,
the department of local government finance shall give notice of the
hearing, by mail, to the executive officer of the political subdivision
and to the first ten (10) taxpayers who signed the petition. The
mailings shall be addressed to the officer and the taxpayers at their
usual place of residence.
(b) After the hearing required by this section, the department of
local government finance may approve, disapprove, or reduce the
amount of the proposed issue. The board must render a decision
not later than three (3) months after the hearing, and if no decision
is rendered within that time, the issue is considered approved
unless the board takes the extension provided for in this section.
However, a three (3) month extension of the period during which
the decision must be rendered may be taken by the board if the
board gives notice by mail of the extension at least ten (10) days
before the end of the original three (3) month period to the
executive officer of the political subdivision and to the first ten (10)
taxpayers who signed the petition. If no decision is rendered within
the extension period, the issue is considered approved. The action
taken by the department of local government finance on the
proposed issue is final.
Sec. 7. If the proper officers of a political subdivision decide to
issue bonds, notes, or warrants that will be payable from property
taxes and will bear interest in excess of eight percent (8%) per
annum, the political subdivision shall submit the matter to the
department of local government finance for review. The board may
either approve or disapprove the rate of interest.
Sec. 8. (a) If the proper officers of a political subdivision decide
to issue bonds payable from property taxes to finance a public
improvement, the officers shall adopt an ordinance or a resolution
that sets forth the determination to issue the bonds. Except as
provided in subsection (b), the political subdivision may not
advertise for or receive bids for the construction of the
improvement until the expiration of the latter of:
(1) the period within which taxpayers may file a petition for
review of or a remonstrance against the proposed issue; or
(2) the period during which a petition for review of the
proposed issue is pending before the department of local
government finance.
(b) When a petition for review of a proposed issue is pending
before the department of local government finance, the board may
order the political subdivision to advertise for and receive bids for
the construction of the public improvement. If the board issues
such an order, the political subdivision shall file a bid report with
the department of local government finance within five (5) days
after the bids are received, and the board shall render a final
decision on the proposed issue within fifteen (15) days after the
board receives the bid report. Notwithstanding the provisions of
this subsection, a political subdivision may not enter into a contract
for the construction of a public improvement while a petition for
review of the bond issue that is to finance the public improvement
is pending before the department of local government finance.
SOURCE: IC 36-2-1-4; (04)IN1312.1.297. -->
SECTION 297. IC 36-2-1-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 4. If any
indebtedness exists in either, both, or all of the interested counties, the
fiscal body of the county shall levy, from year to year, a tax upon the
detached territory, by such a rate on all the taxable property in the
detached district under IC 6-3.5-9 as is necessary to liquidate and pay
the indebtedness of the county from which the territory was detached
until the indebtedness is fully paid. The rate may not exceed that levied
on the county so indebted. The auditor of each of the affected counties
shall certify the rate so levied to the auditor of the county to which the
territory was attached, which auditor shall place that rate on the tax
duplicate of his county, and the treasurer of that county shall collect the
tax, and, on demand of the treasurer of the proper county, shall pay
over the revenue as other monies are paid out.
SOURCE: IC 36-2-3-7; (04)IN1312.1.298. -->
SECTION 298. IC 36-2-3-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 7. (a) The fiscal
body shall hold its meetings in the county seat, in the county auditor's
office, or in another location provided by the county executive and
approved by the fiscal body.
(b) The fiscal body:
(1) shall hold a regular meeting in January after its election, for
the purpose of organization and other business;
(2) shall hold a regular meeting annually, as prescribed by
IC 6-1.1-17, to adopt the county's annual budget; and tax rate;
(3) may hold a special meeting under subsection (c) or (d); and
(4) in the case of a county subject to IC 36-2-3.5, shall hold
meetings at a regularly scheduled time each month that does not
conflict with the meetings of the county executive.
(c) A special meeting of the fiscal body may be called:
(1) by the county auditor or the president of the fiscal body; or
(2) by a majority of the members of the fiscal body.
At least forty-eight (48) hours before the meeting, the auditor,
president, or members calling the meeting shall give written notice of
the meeting to each member of the fiscal body and publish, at least one
(1) day before the meeting, the notice in accordance with IC 5-3-1-4.
This subsection does not apply to a meeting called to deal with an
emergency under IC 5-14-1.5-5.
(d) If a court orders the county auditor to make an expenditure of
county money for a purpose for which an appropriation has not been
made, the auditor shall immediately call an emergency meeting of the
fiscal body to discuss the matter. Notwithstanding subsection (c), the
meeting must be held within three (3) working days of the receipt of
the order by the auditor, and notice of the meeting day, time, and places
place is sufficient if:
(1) given by telephone to the members of the fiscal body; and
(2) given according to IC 5-14-1.5.
SOURCE: IC 36-2-6-18; (04)IN1312.1.299. -->
SECTION 299. IC 36-2-6-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005]: Sec. 18. (a) The county
fiscal body may, by ordinance:
(1) make loans for the purpose of procuring money to be used in
the exercise of county powers and for the payment of county debts
other than current running expenses, and issue bonds or other
county obligations to refund those loans;
(2) make temporary loans to meet current running expenses, in
anticipation of and not in excess of county revenues for the
current fiscal year, which shall be evidenced by tax anticipation
warrants of the county; and
(3) make loans and issue notes under subsection (d).
(b) An ordinance authorizing the issuance of bonds under this
section must state the purpose for which the bonds are issued and may
provide that the bonds:
(1) are or are not negotiable;
(2) bear interest at any rate;
(3) run not longer than twenty (20) years; and
(4) mature by installments payable annually or otherwise.
(c) An ordinance authorizing the issuance of tax anticipation
warrants under this section must:
(1) state the total amount of the issue;
(2) state the denomination of the warrants;
(3) state the time and place payable;
(4) state the rate of interest;
(5) state the funds and revenues in anticipation of which the
warrants are issued and out of which they are payable; and
(6) appropriate and pledge a sufficient amount of those revenues
to the punctual payment of the warrants.
The warrants are exempt from taxation for all purposes.
(d) The county fiscal body may, by ordinance, make loans of money
for not more than five (5) years and issue notes for the purpose of
refunding those loans. The loans may be made only for the purpose of
procuring money to be used in the exercise of the powers of the county,
and the total amount of outstanding loans under this subsection may not
exceed five percent (5%) of the county's total tax levy collections in the
current year (excluding amounts levied to pay debt service and lease
rentals). Loans under this subsection shall be made in the same manner
as loans made under subsection (a)(1), except that:
(1) the ordinance authorizing the loans must pledge to their
payment a sufficient amount of tax revenues over the ensuing five
(5) years to provide for refunding the loans;
(2) the loans must be evidenced by notes of the county in terms
designating the nature of the consideration, the time and place
payable, and the revenues out of which they will be payable; and
(3) the interest accruing on the notes to the date of maturity may
be added to and included in their face value or be made payable
periodically, as provided in the ordinance.
Notes issued under this subsection are not bonded indebtedness for
purposes of IC 6-1.1-18.5.
(e) If a deficit is incurred for the current running expenses of the
county because the total of county revenues for the fiscal year is less
than the anticipated total, the county fiscal body shall provide for the
deficit in the next county tax levy. budget.
SECTION 300. IC 36-2-15-7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 5, 2005]: Sec. 7. The office of county
assessor is terminated in any c