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, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 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 the 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.
     (e) The sum of the amounts determined under subsections (a) through (c) is the particular county's estimated distribution for the calendar year.

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 in 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:
  &nbs