Introduced Version






HOUSE BILL No. 1003

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 4-33; IC 6-1.1; IC 6-3.5; IC 6-5.5-8-2 ; IC 6-6-5-10 ; IC 12-13-5-5 ; IC 12-17-3-2 ; IC 12-19; IC 31-31-5-4 ; IC 31-34; IC 31-37-24 ; IC 31-40-1 ; IC 36-2-6-3.

Synopsis: State and local finance. Eliminates the authority of a county to impose a property tax levy for the county family and children's fund, beginning in 2003. Transfers responsibility for funding children's services from the county family and children's funds to the state. Eliminates the authority of a county to borrow for welfare purposes. Makes certain conforming amendments and other changes related to child services. Specifies that a county shall pay from the county general fund the cost of any per diem payable for a child adjudicated a delinquent child, or for a child for whom a program of informal adjustment has been implemented, if the child is placed in a secure facility that is not a secure private facility. Changes the property tax levy limit provisions to: (1) provide for a maximum increase of 8% (rather than 10%) in property tax levies; and (2) provide for a minimum increase of 4% (rather than 5%) in property tax levies. Provides counties with the option of using county adjusted gross income tax and county option income tax revenue for three types of property tax relief: (1) property tax replacement credits; (2) homestead credits; and (3) property tax reductions for low income homeowners. Allows the combined county option income tax rate and the county economic development income tax rate to be as much as 1.25%, in order to provide the property tax relief. (This maximum already applies to the combination of the county adjusted gross income tax and the county economic development income tax rate.) Allows local units to use riverboat revenue for property tax relief.

Effective: Upon passage; July 1, 2001; January 1, 2002; July 1, 2002; January 1, 2003.





Bauer




    January 17, 2001, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 112th General Assembly (2001)


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 2000 General Assembly.

HOUSE BILL No. 1003



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

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 4-33-12-6; (01)IN1003.1.1. -->     SECTION 1. IC 4-33-12-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) The department shall place in the state general fund the tax revenue collected under this chapter.
    (b) Except as provided by subsection (c), the treasurer of state shall quarterly pay the following amounts:
        (1) One dollar ($1) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to:
            (A) the city in which the riverboat is docked, if the city:
                (i) is described in IC 4-33-6-1 (a)(1) through IC 4-33-6-1 (a)(4) or in IC 4-33-6-1 (b); or
                (ii) is contiguous to the Ohio River and is the largest city in the county; and
            (B) the county in which the riverboat is docked, if the riverboat is not docked in a city described in clause (A).
        (2) One dollar ($1) of the admissions tax collected by the licensed

owner for each person embarking on a riverboat during the quarter shall be paid to the county in which the riverboat is docked. In the case of a county described in subdivision (1)(B), this one dollar ($1) is in addition to the one dollar ($1) received under subdivision (1)(B).
        (3) Ten cents ($0.10) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the county convention and visitors bureau or promotion fund for the county in which the riverboat is docked.
        (4) Fifteen cents ($0.15) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during a quarter shall be paid to the state fair commission, for use in any activity that the commission is authorized to carry out under IC 15-1.5-3.
        (5) Ten cents ($0.10) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the division of mental health. The division shall allocate at least twenty-five percent (25%) of the funds derived from the admissions tax to the prevention and treatment of compulsive gambling.
        (6) Sixty-five cents ($0.65) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the Indiana horse racing commission to be distributed as follows, in amounts determined by the Indiana horse racing commission, for the promotion and operation of horse racing in Indiana:
            (A) To one (1) or more breed development funds established by the Indiana horse racing commission under IC 4-31-11-10.
            (B) To a racetrack that was approved by the Indiana horse racing commission under IC 4-31. The commission may make a grant under this clause only for purses, promotions, and routine operations of the racetrack. No grants shall be made for long term capital investment or construction and no grants shall be made before the racetrack becomes operational and is offering a racing schedule.
    (c) With respect to tax revenue collected from a riverboat that operates on Patoka Lake, the treasurer of state shall quarterly pay the following amounts:
        (1) The counties described in IC 4-33-1-1 (3) shall receive one dollar ($1) of the admissions tax collected for each person embarking on the riverboat during the quarter.  This amount shall

be divided equally among the counties described in IC 4-33-1-1 (3).
        (2) The Patoka Lake development account established under IC 4-33-15 shall receive one dollar ($1) of the admissions tax collected for each person embarking on the riverboat during the quarter.
        (3) The resource conservation and development program that:
            (A) is established under 16 U.S.C. 3451 et seq.; and
            (B) serves the Patoka Lake area;
        shall receive forty cents ($0.40) of the admissions tax collected for each person embarking on the riverboat during the quarter.
        (4) The state general fund shall receive fifty cents ($0.50) of the admissions tax collected for each person embarking on the riverboat during the quarter.
        (5) The division of mental health shall receive ten cents ($0.10) of the admissions tax collected for each person embarking on the riverboat during the quarter. The division shall allocate at least twenty-five percent (25%) of the funds derived from the admissions tax to the prevention and treatment of compulsive gambling.
    (d) Money paid to a unit of local government under subsection (b)(1) through (b)(2) or subsection (c)(1):
        (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;
        (2) may not be used to reduce the unit's calculated maximum or actual levy under IC 6-1.1-18.5 , but may be used at the discretion of the unit to reduce the property tax levy of the unit for a particular year without the money being considered additional revenue in subsequent years; and
        (3) 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.
    (e) Money paid by the treasurer of state under subsection (b)(3) shall be:
        (1) deposited in:
            (A) the county convention and visitor promotion fund; or
            (B) the county's general fund if the county does not have a convention and visitor promotion fund; and
        (2) used only for the tourism promotion, advertising, and economic development activities of the county and community.
    (f) Money received by the division of mental health under

subsections (b)(5) and (c)(5):
        (1) is annually appropriated to the division of mental health;
        (2) shall be distributed to the division of mental health at times during each state fiscal year determined by the budget agency; and
        (3) shall be used by the division of mental health for programs and facilities for the prevention and treatment of addictions to drugs, alcohol, and compulsive gambling, including the creation and maintenance of a toll free telephone line to provide the public with information about these addictions. The division shall allocate at least twenty-five percent (25%) of the money received to the prevention and treatment of compulsive gambling.

SOURCE: IC 4-33-13-6; (01)IN1003.1.2. -->     SECTION 2. IC 4-33-13-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: 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;
        (2) may not be used to reduce the unit's calculated maximum or actual levy under IC 6-1.1-18.5 , but may be used at the discretion of the unit to reduce the property tax levy of the unit for a particular year without the money being considered additional revenue in subsequent years; and
        (3) 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 6-1.1-18-3; (01)IN1003.1.3. -->     SECTION 3. IC 6-1.1-18-3 , AS AMENDED BY P.L.273-1999, SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) Except as provided in subsection (b), the sum of all tax rates for all political subdivisions imposed on tangible property within a political subdivision may not exceed:
        (1) forty-one and sixty-seven hundredths cents ($0.4167) on each one hundred dollars ($100) of assessed valuation in territory outside the corporate limits of a city or town; or
        (2) sixty-six and sixty-seven hundredths cents ($0.6667) on each one hundred dollars ($100) of assessed valuation in territory inside the corporate limits of a city or town.
    (b) The proper officers of a political subdivision shall fix tax rates

which are sufficient to provide funds for the purposes itemized in this subsection. The portion of a tax rate fixed by a political subdivision shall not be considered in computing the tax rate limits prescribed in subsection (a) if that portion is to be used for one (1) of the following purposes:
        (1) To pay the principal or interest on a funding, refunding, or judgment funding obligation of the political subdivision.
        (2) To pay the principal or interest on an outstanding obligation issued by the political subdivision if notice of the sale of the obligation was published before March 9, 1937.
        (3) To pay the principal or interest upon:
            (A) an obligation issued by the political subdivision to meet an emergency which results from a flood, fire, pestilence, war, or any other major disaster; or
            (B) a note issued under IC 36-2-6-18 , IC 36-3-4-22 , IC 36-4-6-20 , or IC  36-5-2-11 to enable a city, town, or county to acquire necessary equipment or facilities for municipal or county government.
        (4) To pay the principal or interest upon an obligation issued in the manner  provided in IC 6-1.1-20-3 (before its repeal) or IC 6-1.1-20-3.1 through IC 6-1.1-20-3.2.
        (5) To pay a judgment rendered against the political subdivision.
        (6) To meet the requirements of the family and children's fund for child services (as defined in IC 12-19-7-1).
        (7) (6) To meet the requirements of the county hospital care for the indigent fund.
    (c) Except as otherwise provided in IC 6-1.1-19 or IC 6-1.1-18.5 , a county board of tax adjustment, a county auditor, or the state board of tax commissioners may review the portion of a tax rate described in subsection (b) only to determine if it exceeds the portion actually needed to provide for one (1) of the purposes itemized in that subsection.

SOURCE: IC 6-1.1-18.5-2; (01)IN1003.1.4. -->     SECTION 4. IC 6-1.1-18.5-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) For purposes of determining a civil taxing unit's maximum permissible ad valorem property tax levy for an ensuing calendar year, the civil taxing unit shall use the assessed value growth quotient determined in the last STEP of the following STEPS:
        STEP ONE: Determine the three (3) calendar years that most immediately precede the ensuing calendar year and in which a statewide general reassessment of real property does not first become effective.
        STEP TWO: Compute separately, for each of the calendar years determined in STEP ONE, the quotient (rounded to the nearest ten-thousandth) of the civil taxing unit's total assessed value of all taxable property in the particular calendar year, divided by the civil taxing unit's total assessed value of all taxable property in the calendar year immediately preceding the particular calendar year.
        STEP THREE: Divide the sum of the three (3) quotients computed in STEP TWO by three (3).
        STEP FOUR: Determine the greater of the result computed in STEP THREE or one and five-hundredths (1.05). four-hundredths (1.04).
        STEP FIVE: Determine the lesser of the result computed in STEP FOUR or one and one-tenth (1.1). eight-hundredths (1.08).
    (b) If the assessed values of taxable property used in determining a civil taxing unit's property taxes that are first due and payable in a particular calendar year are significantly increased over the assessed values used for the immediately preceding calendar year's property taxes due to the settlement of litigation concerning the general reassessment of that civil taxing unit's real property, then for purposes of determining that civil taxing unit's assessed value growth quotient for an ensuing calendar year, the state board of tax commissioners shall replace the quotient described in STEP TWO of subsection (a) for that particular calendar year. The state board of tax commissioners shall replace that quotient with one that as accurately as possible will reflect the actual growth in the civil taxing unit's assessed values of real property from the immediately preceding calendar year to that particular calendar year.
SOURCE: IC 6-1.1-18.5-3; (01)IN1003.1.5. -->     SECTION 5. IC 6-1.1-18.5-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Except as otherwise provided in this chapter, a civil taxing unit that is treated as not being located in an adopting county under section 4 of this chapter may not impose an ad valorem property tax levy for an ensuing calendar year that exceeds the amount determined in the last STEP of the following STEPS:
        STEP ONE: Add the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year to the part of the civil taxing unit's certified share, if any, that was used to reduce the civil taxing unit's ad valorem property tax levy under STEP EIGHT of subsection (b) for that preceding calendar year.
        STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in the last STEP of section 2 of this chapter.
        STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient (rounded to the nearest ten-thousandth), of the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year, divided by the assessed value of all taxable property that is subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year and that is contained within the geographic area that was subject to the civil taxing unit's ad valorem property tax levy in the preceding calendar year.
        STEP FOUR: Determine the greater of the amount determined in STEP THREE or one (1).
        STEP FIVE: Multiply the amount determined in STEP TWO by the amount determined in STEP FOUR.
        STEP SIX: Add the amount determined under STEP TWO to the amount determined under subsection (c).
        STEP SEVEN: Determine the greater of the amount determined under STEP FIVE or the amount determined under STEP SIX.
    (b) Except as otherwise provided in this chapter and IC 6-3.5-1.1-11.5 , a civil taxing unit that is treated as being located in an adopting county under section 4 of this chapter may not impose an ad valorem property tax levy for an ensuing calendar year that exceeds the amount determined in the last STEP of the following STEPS:
        STEP ONE: Add the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year to the part of the civil taxing unit's certified share, if any, used to reduce the civil taxing unit's ad valorem property tax levy under STEP EIGHT of this subsection for that preceding calendar year.
        STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in the last STEP of section 2 of this chapter.
        STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient of the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year divided by the assessed value of all taxable property that is subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year and that is contained within the geographic area that was subject to the civil taxing unit's ad valorem property tax levy in the preceding calendar year.
        STEP FOUR: Determine the greater of the amount determined in STEP THREE or one (1).
        STEP FIVE: Multiply the amount determined in STEP TWO by

the amount determined in STEP FOUR.
        STEP SIX: Add the amount determined under STEP TWO to the amount determined under subsection (c).
        STEP SEVEN: Determine the greater of the amount determined under STEP FIVE or the amount determined under STEP SIX.
        STEP EIGHT: Subtract the amount determined under STEP FIVE of subsection (e) from the amount determined under STEP SEVEN of this subsection. For a county that has adopted an ordinance under IC 6-3.5-1.1-11.5 , subtract the amount specified as base year certified shares by the civil taxing unit under IC 6-3.5-1.1-11.5 (c).
    (c) If a civil taxing unit in the immediately preceding calendar year provided an area outside its boundaries with services on a contractual basis and in the ensuing calendar year that area has been annexed by the civil taxing unit, the amount to be entered under STEP SIX of subsection (a) or STEP SIX of subsection (b), as the case may be, equals the amount paid by the annexed area during the immediately preceding calendar year for services that the civil taxing unit must provide to that area during the ensuing calendar year as a result of the annexation. In all other cases, the amount to be entered under STEP SIX of subsection (a) or STEP SIX of subsection (b), as the case may be, equals zero (0).
    (d) This subsection does not apply to a civil taxing unit located in a county that has adopted an ordinance under IC 6-3.5-1.1-11.5. This subsection applies only to civil taxing units located in a county having a county adjusted gross income tax rate for resident county taxpayers (as defined in IC 6-3.5-1.1-1 ) of one percent (1%) as of January 1 of the ensuing calendar year. For each civil taxing unit, the amount to be added to the amount determined in subsection (e), STEP FOUR, is determined using the following formula:
        STEP ONE: Multiply the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year by two percent (2%).
        STEP TWO: For the determination year, the amount to be used as the STEP TWO amount is the amount determined in subsection (f) for the civil taxing unit. For each year following the determination year the STEP TWO amount is the lesser of:
            (A) the amount determined in STEP ONE; or
            (B) the amount determined in subsection (f) for the civil taxing unit.
        STEP THREE: Determine the greater of:
            (A) zero (0); or


            (B) the civil taxing unit's certified share for the ensuing calendar year minus the greater of:
                (i) the civil taxing unit's certified share for the calendar year that immediately precedes the ensuing calendar year; or
                (ii) the civil taxing unit's base year certified share.
        STEP FOUR: Determine the greater of:
            (A) zero (0); or
            (B) the amount determined in STEP TWO minus the amount determined in STEP THREE.
Add the amount determined in STEP FOUR to the amount determined in subsection (e), STEP THREE, as provided in subsection (e), STEP FOUR.
    (e) This subsection does not apply to a civil taxing unit located in a county that has adopted an ordinance under IC 6-3.5-1.1-11.5. For each civil taxing unit, the amount to be subtracted under subsection (b), STEP EIGHT, is determined using the following formula:
        STEP ONE: Determine the lesser of the civil taxing unit's base year certified share for the ensuing calendar year, as determined under section 5 of this chapter, or the civil taxing unit's certified share for the ensuing calendar year.
        STEP TWO: Determine the greater of:
            (A) zero (0); or
            (B) the remainder of:
                (i) the amount of federal revenue sharing money that was received by the civil taxing unit in 1985; minus
                (ii) the amount of federal revenue sharing money that will be received by the civil taxing unit in the year preceding the ensuing calendar year.
        STEP THREE: Determine the lesser of:
            (A) the amount determined in STEP TWO; or
            (B) the amount determined in subsection (f) for the civil taxing unit.
        STEP FOUR: Add the amount determined in subsection (d), STEP FOUR, to the amount determined in STEP THREE.
        STEP FIVE: Subtract the amount determined in STEP FOUR from the amount determined in STEP ONE.
    (f) This subsection does not apply to a civil taxing unit located in a county that has adopted an ordinance under IC 6-3.5-1.1-11.5. As used in this section, a taxing unit's "determination year" means the latest of:
        (1) calendar year 1987, if the taxing unit is treated as being located in an adopting county for calendar year 1987 under

section 4 of this chapter;
        (2) the taxing unit's base year, as defined in section 5 of this chapter, if the taxing unit is treated as not being located in an adopting county for calendar year 1987 under section 4 of this chapter; or
        (3) the ensuing calendar year following the first year that the taxing unit is located in a county that has a county adjusted gross income tax rate of more than one-half percent (0.5%) on July 1 of that year.
The amount to be used in subsections (d) and (e) for a taxing unit depends upon the taxing unit's certified share for the ensuing calendar year, the taxing unit's determination year, and the county adjusted gross income tax rate for resident county taxpayers (as defined in IC 6-3.5-1.1-1 ) that is in effect in the taxing unit's county on July 1 of the year preceding the ensuing calendar year. For the determination year and the ensuing calendar years following the taxing unit's determination year, the amount is the taxing unit's certified share for the ensuing calendar year multiplied by the appropriate factor prescribed in the following table:

COUNTIES WITH A TAX RATE OF 1/2%

         Subsection (e)
    Year     Factor
For the determination year and each en-
suing calendar year following the deter-
mination year    0
COUNTIES WITH A TAX RATE OF 3/4%

         Subsection (e)
    Year     Factor
For the determination year and each en-
suing calendar year following the deter-
mination year    1/2
COUNTIES WITH A TAX RATE OF 1.0%

        Subsection (d)     Subsection (e)
    Year    Factor     Factor
For the determination year    1/6     1/3
For the ensuing calendar
year following the determi-
nation year    1/4     1/3
For the ensuing calendar
year following the determi-
nation year by two (2) years    1/3     1/3
SOURCE: IC 6-1.1-18.5-5; (01)IN1003.1.6. -->     SECTION 6. IC 6-1.1-18.5-5 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) As used in this section, "base year" for a civil taxing unit means the most recent calendar year:
        (1) in which the civil taxing unit is located in an adopting county, as determined under section 4 of this chapter; and
        (2) that is immediately preceded by a calendar year in which the civil taxing unit either:
            (A) was not located in an adopting county, as determined under section 4 of this chapter; or
            (B) did not impose an ad valorem property tax levy.
If the civil taxing unit was located in an adopting county in calendar year 1979, as determined under section 4 of this chapter, the civil taxing unit's base year is calendar year 1979 or the year determined above, whichever is later.
    (b) If the county adjusted gross income tax was not in effect on January 1 of the calendar year immediately preceding the ensuing calendar year in the county in which a particular civil taxing unit is located, then the civil taxing unit's base year certified share is the amount of certified shares to be received by the civil taxing unit during its base year.
    (c) If the county adjusted gross income tax was in effect on January 1 of the calendar year immediately preceding the ensuing calendar year in the county in which a particular civil taxing unit is located, then the civil taxing unit's base year certified share is the amount of certified shares received by the civil taxing unit in its base year, multiplied by a fraction:
        (1) The numerator of the fraction equals the remainder of the county adjusted gross income tax rate of the county in which the civil taxing unit is located and that is imposed on January 1 of the ensuing calendar year minus one quarter of one percent (1/4%).
        (2) The denominator of the fraction equals the remainder of the county adjusted gross income tax rate of the county in which the civil taxing unit is located and that is imposed on January 1 of the civil taxing unit's base year minus one quarter of one percent (1/4%).
     (d) For a civil taxing unit located in a county that has adopted an ordinance under IC 6-3.5-1.1-11.5 , base year certified shares must be the amount specified by the civil taxing unit in the ordinance adopted under IC 6-3.5-1.1-11.5.

SOURCE: IC 6-1.1-18.5-9.7; (01)IN1003.1.7. -->     SECTION 7. IC 6-1.1-18.5-9.7 , AS AMENDED BY P.L.273-1999, SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9.7. (a) The ad valorem property tax levy

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

SOURCE: IC 6-1.1-21-2; (01)IN1003.1.8. -->     SECTION 8. IC 6-1.1-21-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. As used in this chapter:
    (a) "Taxpayer" means a person who is liable for taxes on property assessed under this article.
    (b) "Taxes" means taxes payable in respect to property assessed under this article. The term does not include special assessments, penalties, or interest, but does include any special charges which a county treasurer combines with all other taxes in the preparation and delivery of the tax statements required under IC 6-1.1-22-8 (a).
    (c) "Department" means the department of state revenue.
    (d) "Auditor's abstract" means the annual report prepared by each county auditor which, under IC 6-1.1-22-5 , is to be filed on or before March 1 of each year with the auditor of state.
    (e) "Mobile home assessments" means the assessments of mobile homes made under IC 6-1.1-7.
    (f) "Postabstract adjustments" means adjustments in taxes made subsequent to the filing of an auditor's abstract which change assessments therein or add assessments of omitted property affecting taxes for such assessment year.
    (g) "Total county tax levy" means the sum of:
        (1) the remainder of:
            (A) the aggregate levy of all taxes for all taxing units in a county which are to be paid in the county for a stated assessment year as reflected by the auditor's abstract for the assessment year, adjusted, however, for any postabstract adjustments which change the amount of the aggregate levy; minus
            (B) the sum of any increases in property tax levies of taxing units of the county that result from appeals described in:
                (i) IC 6-1.1-18.5-13 (5) and IC 6-1.1-18.5-13 (6) filed after December 31, 1982; plus
                (ii) the sum of any increases in property tax levies of taxing units of the county that result from any other appeals described in IC 6-1.1-18.5-13 filed after December 31, 1983; plus
                (iii) IC 6-1.1-18.6-3 (children in need of services and delinquent children who are wards of the county); minus
            (C) the total amount of property taxes imposed for the stated assessment year by the taxing units of the county under the authority of IC 12-1-11.5 (repealed), IC 12-2-4.5 (repealed), IC 12-19-5 (repealed), or IC 12-20-24 ; minus
            (D) the total amount of property taxes to be paid during the stated assessment year that will be used to pay for interest or principal due on debt that:
                (i) is entered into after December 31, 1983;
                (ii) is not debt that is issued under IC 5-1-5 to refund debt incurred before January 1, 1984; and
                (iii) does not constitute debt entered into for the purpose of building, repairing, or altering school buildings for which the requirements of IC 20-5-52 were satisfied prior to January 1, 1984; minus
            (E) the amount of property taxes imposed in the county for the stated assessment year under the authority of IC 21-2-6 (repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a cumulative building fund whose property tax rate was initially established or reestablished for a stated assessment year that succeeds the 1983 stated assessment year; minus
            (F) the remainder of:
                (i) the total property taxes imposed in the county for the stated assessment year under authority of IC 21-2-6 (repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a cumulative building fund whose property tax rate was not initially established or reestablished for a stated assessment year that succeeds the 1983 stated assessment year; minus
                (ii) the total property taxes imposed in the county for the 1984 stated assessment year under the authority of IC 21-2-6 (repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a cumulative building fund whose property tax rate was not initially established or reestablished for a stated assessment

year that succeeds the 1983 stated assessment year; minus
            (G) the amount of property taxes imposed in the county for the stated assessment year under:
                (i) IC 21-2-15 for a capital projects fund; plus
                (ii) IC 6-1.1-19-10 for a racial balance fund; plus
                (iii) IC 20-14-13 for a library capital projects fund; plus
                (iv) IC 20-5-17.5-3 for an art association fund; plus
                (v) IC 21-2-17 for a special education preschool fund; plus
                (vi) an appeal filed under IC 6-1.1-19-5.1 for an increase in a school corporation's maximum permissible general fund levy for certain transfer tuition costs; plus
                (vii) an appeal filed under IC 6-1.1-19-5.4 for an increase in a school corporation's maximum permissible general fund levy for transportation operating costs; minus
            (H) the amount of property taxes imposed by a school corporation that is attributable to the passage, after 1983, of a referendum for an excessive tax levy under IC 6-1.1-19 , including any increases in these property taxes that are attributable to the adjustment set forth in IC 6-1.1-19-1.5(a) STEP ONE or any other law; minus
            (I) for each township in the county, the lesser of:
                (i) the sum of the amount determined in IC 6-1.1-18.5-19 (a) STEP THREE or IC  6-1.1-18.5-19(b) STEP THREE, whichever is applicable, plus the part, if any, of the township's ad valorem property tax levy for calendar year 1989 that represents increases in that levy that resulted from an appeal described in IC 6-1.1-18.5-13 (5) filed after December 31, 1982; or
                (ii) the amount of property taxes imposed in the township for the stated assessment year under the authority of IC 36-8-13-4 ; minus
            (J) for each participating unit in a fire protection territory established under IC 36-8-19-1 , the amount of property taxes levied by each participating unit under IC 36-8-19-8 and IC  36-8-19-8.5 less the maximum levy limit for each of the participating units that would have otherwise been available for fire protection services under IC 6-1.1-18.5-3 and IC 6-1.1-18.5-19 for that same year; minus
            (K) for each county, the sum of:
                (i) the amount of property taxes imposed in the county for the repayment of loans under IC 12-19-5-6 that is included in the amount determined under IC 12-19-7-4(a) STEP

SEVEN for property taxes payable in 1995; or for property taxes payable in each year after 1995, the amount determined under IC 12-19-7-4(b); and
                (ii) the amount of property taxes imposed in the county attributable to appeals granted under IC 6-1.1-18.6-3 that is included in the amount determined under IC 12-19-7-4(a) STEP SEVEN for property taxes payable in 1995, or the amount determined under IC 12-19-7-4(b) for property taxes payable in each year after 1995; plus
        (2) all taxes to be paid in the county in respect to mobile home assessments currently assessed for the year in which the taxes stated in the abstract are to be paid; plus
        (3) the amounts, if any, of county adjusted gross income taxes that were applied by the taxing units in the county as property tax replacement credits to reduce the individual levies of the taxing units for the assessment year, as provided in IC 6-3.5-1.1 ; plus
        (4) the amounts, if any, by which the maximum permissible ad valorem property tax levies of the taxing units of the county were reduced under IC 6-1.1-18.5-3 (b) STEP EIGHT for the stated assessment year; plus
        (5) the difference between:
            (A) the amount determined in IC 6-1.1-18.5-3 (e) STEP FOUR; minus
            (B) the amount the civil taxing units' levies were increased because of the reduction in the civil taxing units' base year certified shares under IC 6-1.1-18.5-3 (e).
    (h) "December settlement sheet" means the certificate of settlement filed by the county auditor with the auditor of state, as required under IC 6-1.1-27-3.
    (i) "Tax duplicate" means the roll of property taxes which each county auditor is required to prepare on or before March 1 of each year under IC 6-1.1-22-3.

SOURCE: IC 6-1.1-29-9; (01)IN1003.1.9. -->     SECTION 9. IC 6-1.1-29-9 , AS AMENDED BY P.L.273-1999, SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. (a) A county council may adopt an ordinance to abolish the county board of tax adjustment. This ordinance must be adopted by July 1 and may not be rescinded in the year it is adopted. Notwithstanding IC 6-1.1-17 , IC 6-1.1-18 , IC 6-1.1-19 , IC 12-19-7, IC 21-2-14 , IC 36-8-6 , IC 36-8-7 , IC 36-8-7.5 , IC 36-8-11 , IC 36-9-3 , IC 36-9-4 , and IC 36-9-13 , if such an ordinance is adopted, this section governs the treatment of tax rates, tax levies, and budgets that would otherwise be reviewed by a county board of tax adjustment

under IC 6-1.1-17.
    (b) The time requirements set forth in IC 6-1.1-17 govern all filings and notices.
    (c) A tax rate, tax levy, or budget that otherwise would be reviewed by the county board of tax adjustment is considered and must be treated for all purposes as if the county board of tax adjustment approved the tax rate, tax levy, or budget. This includes the notice of tax rates that is required under IC 6-1.1-17-12.

SOURCE: IC 6-3.5-1.1-11; (01)IN1003.1.10. -->     SECTION 10. IC 6-3.5-1.1-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. (a) Except for revenue that:
         (1) must be used to pay the costs of operating a jail and juvenile detention center under section 2.5(d) of this chapter or revenue that must be used to pay the costs of operating and maintaining a jail and justice center under section 3.5(d) of this chapter; or
        (2) has been dedicated to property tax relief by the county under section 11.5 of this chapter;

the certified distribution received by a county treasurer shall, in the manner prescribed in this section, be allocated, distributed, and used by the civil taxing units and school corporations of the county as certified shares and property tax replacement credits.
    (b) Before August 2 of each calendar year, each county auditor shall determine the part of the certified distribution for the next succeeding calendar year that will be allocated as property tax replacement credits and the part that will be allocated as certified shares. The percentage of a certified distribution that will be allocated as property tax replacement credits or as certified shares depends upon the county adjusted gross income tax rate for resident county taxpayers in effect on August 1 of the calendar year that precedes the year in which the certified distribution will be received. The percentages are set forth in the following table:
         PROPERTY
    COUNTY     TAX
    ADJUSTED GROSS     REPLACEMENT     CERTIFIED
    INCOME TAX RATE     CREDITS     SHARES
    0.5%     50%     50%
    0.75%     33 1/3%     66 2/3%
    1%     25%     75%
    (c) The part of a certified distribution that constitutes property tax replacement credits shall be distributed as provided under sections 12, 13, and 14 of this chapter.
    (d) The part of a certified distribution that constitutes certified

shares shall be distributed as provided by section 15 of this chapter.

SOURCE: IC 6-3.5-1.1-11.5; (01)IN1003.1.11. -->     SECTION 11. IC 6-3.5-1.1-11.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11.5. (a) A county council may adopt an ordinance to use revenue under this chapter for property tax relief. All or a part of the certified distribution to a county under this chapter, minus the amount needed to provide property tax replacement credits for school corporations, may be used for property tax relief under this section. The amount of property tax replacement credits that shall be allocated and distributed to a school corporation within the county is the same property tax replacement credit amount the school corporation would have been allocated if the county council had not adopted an ordinance under this section.
    (b) The types of property tax relief that may be provided under this section are limited to the following:
        (1) Providing property tax replacement credits to be distributed as provided in section 11.6 of this chapter.
        (2) Increasing the percentage credit allowed for homesteads in the county under IC 6-1.1-20.9-2 , as provided in section 11.7 of this chapter.
        (3) Providing a property tax reduction for low income individuals under section 11.8 of this chapter.
        (4) A combination of the types of relief listed in subdivisions (1) through (3).
    (c) An ordinance adopted under this section must specify the percentage of the total certified distribution that will be used for each type of relief. The remaining certified distribution shall be considered certified shares for each civil taxing unit. Before a civil taxing unit may receive the certified shares, it must adopt an ordinance specifying the amount that will be treated as base year certified shares under IC 6-1.1-18.5-5.
    (d) An ordinance may be adopted under this section after January 1 but before June 1 of a calendar year. The ordinance remains in effect for the period specified in the ordinance or until it is rescinded.
    (e) An ordinance adopted under this section takes effect on January 1 of the next succeeding calendar year.
    (f) An ordinance adopted under this section for a county is repealed for a year if, on January 1 of that year, the county adjusted gross income tax is not in effect.

SOURCE: IC 6-3.5-1.1-11.6; (01)IN1003.1.12. -->     SECTION 12. IC 6-3.5-1.1-11.6 IS ADDED TO THE INDIANA

CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11.6. (a) If an ordinance adopted under section 11.5 of this chapter includes property tax replacement credits, these credits shall be allocated and distributed to civil taxing units by taking the amount dedicated to these credits multiplied by a fraction:
        (1) the numerator of which equals the sum of the total property taxes being collected by the civil taxing unit during that calendar year; and
        (2) the denominator of which equals the sum of the total property taxes being collected by all civil taxing units in the county.
    (b) The state board of tax commissioners shall reduce the net property tax levy of each civil taxing unit by the amount of the property tax replacement credits allocated under this section.

SOURCE: IC 6-3.5-1.1-11.7; (01)IN1003.1.13. -->     SECTION 13. IC 6-3.5-1.1-11.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11.7. If an ordinance adopted under section 11.5 of this chapter includes an increase in the homestead credit percentage, the increase of the homestead credit percentage must be uniform for all homesteads in the county. In the ordinance that increases the homestead credit percentage, a county council may provide for a series of increases or decreases to take place for each of a group of succeeding calendar years.
SOURCE: IC 6-3.5-1.1-11.8; (01)IN1003.1.14. -->     SECTION 14. IC 6-3.5-1.1-11.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11.8. (a) If an ordinance adopted under section 11.5 of this chapter includes a property tax reduction for low income individuals, the following apply:
        (1) The reduction applies only to a homestead to which the state homestead credit applies.
        (2) The combined adjusted gross income (as defined in Section 62 of the Internal Revenue Code) of:
            (A) the individual who owns the homestead and the individual's spouse; or
            (B) the individual and all other individuals with whom the individual:
                (i) shares ownership; or
                (ii) is purchasing the property under a contract;
            as joint tenants or tenants in common;
        for the calendar year preceding the year in which the credit is claimed may not exceed twenty-five thousand dollars

($25,000).
    (b) The ordinance must set forth the amount by which property taxes on the homestead shall be reduced, which may be in terms of a percentage of property taxes due, a percentage of combined adjusted gross income, or a fixed amount. However, the maximum property tax reduction under this section may not cause the property taxes due on a homestead for a year to be less than two percent (2%) of the combined adjusted gross income referred to in subsection (a).
    (c) An individual must claim the property tax reduction in the same manner as the state homestead credit is claimed. An individual who receives a property tax reduction under this section in a particular year and who becomes ineligible in the following year shall notify the auditor of the county in which the homestead is located of the ineligibility before May 10 of the year in which the individual becomes ineligible.
    (d) The auditor of each county shall, in a particular year, apply the property tax reduction to each individual who received the reduction in the preceding year unless the auditor determines that the individual is no longer eligible for the reduction.

SOURCE: IC 6-3.5-1.1-12; (01)IN1003.1.15. -->     SECTION 15. IC 6-3.5-1.1-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. (a) Except as provided in section 11.5 of this chapter, the part of a county's certified distribution for a calendar year that is to be used as property tax replacement credits shall be allocated by the county auditor among the civil taxing units and school corporations of the county.
    (b) Except as provided in section 13 of this chapter, the amount of property tax replacement credits that each civil taxing unit and school corporation in a county is entitled to receive during a calendar year equals the product of:
        (1) that part of the county's certified distribution that is dedicated to providing property tax replacement credits for that same calendar year; multiplied by
        (2) a fraction:
            (A) The numerator of the fraction equals the sum of the total property taxes being collected by the civil taxing unit or school corporation during that calendar year, plus with respect to a civil taxing unit, the amount of federal revenue sharing funds, and certified shares received by it during that calendar year to the extent that they are used to reduce its property tax levy below the limit imposed by IC 6-1.1-18.5 for that same calendar year.
            (B) The denominator of the fraction equals the sum of the total property taxes being collected by all civil taxing units and school corporations, plus the amount of federal revenue sharing funds and certified shares received by all civil taxing units in the county to the extent that they are used to reduce the civil taxing units' property tax levies below the limits imposed by IC 6-1.1-18.5 for that same calendar year.
    (c) The state board of tax commissioners shall provide each county auditor with the amount of property tax replacement credits that each civil taxing unit and school corporation in the auditor's county is entitled to receive. The county auditor shall then certify to each civil taxing unit and school corporation the amount of property tax replacement credits it is entitled to receive (after adjustment made under section 13 of this chapter) during that calendar year. The county auditor shall also certify these distributions to the county treasurer.
SOURCE: IC 6-3.5-1.1-14; (01)IN1003.1.16. -->     SECTION 16. IC 6-3.5-1.1-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. (a) This section applies to property tax replacement credits provided in section 11.5 of this chapter. In determining the amount of property tax replacement credits civil taxing units and school corporations of a county are entitled to receive during a calendar year, the state board of tax commissioners shall consider only property taxes imposed on tangible property that was assessed in that county.
    (b) If a civil taxing unit or a school corporation is located in more than one (1) county and receives property tax replacement credits from one (1) or more of the counties, then the property tax replacement credits received from each county shall be used only to reduce the property tax rates that are imposed within the county that distributed the property tax replacement credits.
    (c) A civil taxing unit shall treat any property tax replacement credits that it receives or is to receive during a particular calendar year as a part of its property tax levy for that same calendar year for purposes of fixing its budget and for purposes of the property tax levy limits imposed by IC 6-1.1-18.5.
    (d) A school corporation shall treat any property tax replacement credits that the school corporation receives or is to receive during a particular calendar year as a part of its property tax levy for its general fund, debt service fund, capital projects fund, transportation fund, and special education preschool fund in proportion to the levy for each of these funds for that same calendar year for purposes of fixing its budget and for purposes of the property tax levy limits imposed by IC 6-1.1-19. A school corporation shall allocate the property tax replacement credits

described in this subsection to all five (5) funds in proportion to the levy for each fund.

SOURCE: IC 6-3.5-1.1-15; (01)IN1003.1.17. -->     SECTION 17. IC 6-3.5-1.1-15 , AS AMENDED BY P.L.273-1999, SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) As used in this section, "attributed levy" of a civil taxing unit means the sum of:
        (1) the ad valorem property tax levy of the civil taxing unit that is currently being collected at the time the allocation is made; plus
        (2) the current ad valorem property tax levy of any special taxing district, authority, board, or other entity formed to discharge governmental services or functions on behalf of or ordinarily attributable to the civil taxing unit; plus
        (3) the amount of federal revenue sharing funds and certified shares that were used by the civil taxing unit (or any special taxing district, authority, board, or other entity formed to discharge governmental services or functions on behalf of or ordinarily attributable to the civil taxing unit) to reduce its ad valorem property tax levies below the limits imposed by IC 6-1.1-18.5 ; plus
        (4) in the case of a county, an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund; plus
        (5) after December 31, 2002, in the case of a county, an amount equal to the property taxes imposed by the county in 2002 for the county family and children's fund.

    (b) The part of a county's certified distribution that is to be used as certified shares shall be allocated only among the county's civil taxing units. Each civil taxing unit of a county is entitled to receive a percentage of the certified shares to be distributed in the county equal to the ratio of its attributed levy to the total attributed levies of all civil taxing units of the county.
    (c) The local government tax control board established by IC 6-1.1-18.5-11 shall determine the attributed levies of civil taxing units that are entitled to receive certified shares during a calendar year. If the ad valorem property tax levy of any special taxing district, authority, board, or other entity is attributed to another civil taxing unit under subsection (b)(2), then the special taxing district, authority, board, or other entity shall not be treated as having an attributed levy of its own. The local government tax control board shall certify the attributed levy amounts to the appropriate county auditor. The county auditor shall then allocate the certified shares among the civil taxing units of his the auditor's county.
    (d) Certified shares received by a civil taxing unit shall be treated as additional revenue for the purpose of fixing its budget for the calendar year during which the certified shares will be received. The certified shares may be allocated to or appropriated for any purpose, including property tax relief or a transfer of funds to another civil taxing unit whose levy was attributed to the civil taxing unit in the determination of its attributed levy. The amount of revenue used for property tax relief under section 11.5 of this chapter shall not be treated as additional revenue.
SOURCE: IC 6-3.5-6-13; (01)IN1003.1.18. -->     SECTION 18. IC 6-3.5-6-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) A county income tax council of a county in which the county option income tax is in effect may adopt an ordinance to increase use all or a portion of the certified distribution under this chapter for property tax relief.
    (b) The types of property tax relief that may be provided under this section are limited to the following:
        (1) Providing property tax replacement credits to be distributed as provided in section 13.1 of this chapter.
        (2) Increasing
the percentage credit allowed for homesteads in its county under IC 6-1.1-20.9-2 ,  as provided in section 13.2 of this chapter.
        (3) Providing a property tax reduction for low income individuals under section 13.3 of this chapter.
        (4) A combination of the types of relief listed in subdivisions (1) through (3).

     (c) The ordinance must specify the percentage of the total certified distribution that will be used for each type of relief. The remaining certified distribution shall be treated as it would notwithstanding this section.
    (b) A county income tax council may not increase the percentage credit allowed for homesteads by an amount that exceeds eight percent (8%).
    (c) The increase of the homestead credit percentage must be uniform for all homesteads in a county.
    (d) In the ordinance that increases the homestead credit percentage, a county income tax council may provide for a series of increases or decreases to take place for each of a group of succeeding calendar years.
    (e) (d) An ordinance may be adopted under this section after January 1 but before June 1 of a calendar year. The ordinance remains in effect for the period specified in the ordinance or until the ordinance is rescinded.
    (f) (e) An ordinance adopted under this section takes effect on January 1 of the next succeeding calendar year.
    (g) (f) Any ordinance adopted under this section for a county is repealed for a year if, on January 1 of that year, the county option income tax is not in effect.
SOURCE: IC 6-3.5-6-13.1; (01)IN1003.1.19. -->     SECTION 19. IC 6-3.5-6-13.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.1. (a) If an ordinance adopted under section 13 of this chapter includes property tax replacement credits, these credits shall be allocated and distributed to civil taxing units by taking the amount dedicated to these credits multiplied by a fraction:
        (1) the numerator of which equals the sum of the total property taxes being collected by the civil taxing unit during that calendar year; and
        (2) the denominator of which equals the sum of the total property taxes being collected by all civil taxing units.
    (b) The state board of tax commissioners shall reduce the net property tax levy of each civil taxing unit by the amount of the property tax replacement credits allocated under this section.

SOURCE: IC 6-3.5-6-13.2; (01)IN1003.1.20. -->     SECTION 20. IC 6-3.5-6-13.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.2. If an ordinance adopted under section 13 of this chapter includes an increase in the homestead credit percentage, the increase of the homestead credit percentage must be uniform for all homesteads in a county. In an ordinance that increases the homestead credit percentage, a county council may provide for a series of increases or decreases to take place for each of a group of succeeding calendar years.
SOURCE: IC 6-3.5-6-13.3; (01)IN1003.1.21. -->     SECTION 21. IC 6-3.5-6-13.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.3. (a) If an ordinance adopted under section 13 of this chapter includes a property tax reduction for low income individuals, the following apply:
        (1) The reduction applies only to a homestead to which the state homestead credit applies.
        (2) The combined adjusted gross income (as defined in Section 62 of the Internal Revenue Code) of:
            (A) the individual who owns the homestead and the individual's spouse; or
            (B) the individual and all other individuals with whom the individual:
                (i) shares ownership; or
                (ii) is purchasing the property under a contract;
            as joint tenants or tenants in common;
        for the calendar year preceding the year in which the reduction is claimed may not exceed twenty-five thousand dollars ($25,000).
    (b) The ordinance must set forth the amount by which property taxes on the homestead shall be reduced, which may be in terms of a percentage of property taxes due, a percentage of combined adjusted gross income, or a fixed amount. However, the maximum property tax reduction under this section may not cause the property taxes due on a homestead for a year to be less than two percent (2%) of the combined adjusted gross income referred to in subsection (a).
    (c) An individual must claim the property tax reduction in the same manner as the state homestead credit is claimed. An individual who receives a property tax reduction under this section in a particular year and who becomes ineligible in the following year shall notify the auditor of the county in which the homestead is located of the ineligibility before May 10 of the year in which the individual becomes ineligible.
    (d) The auditor of each county shall, in a particular year, apply the property tax reduction to each individual who received the reduction in the preceding year, unless the auditor determines that the individual is no longer eligible for the reduction.

SOURCE: IC 6-3.5-6-17.6; (01)IN1003.1.22. -->     SECTION 22. IC 6-3.5-6-17.6 , AS AMENDED BY P.L.273-1999, SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17.6. (a) This section applies to a county containing a consolidated city.
    (b) On or before July 15 of each year, the budget agency shall make the following calculation:
        STEP ONE: Determine the cumulative balance in a county's account established under section 16 of this chapter as of the end of the current calendar year.
        STEP TWO: Divide the amount estimated under section 17(b) of this chapter before any adjustments are made under section 17(c) or 17(d) of this chapter by twelve (12).
        STEP THREE: Multiply the STEP TWO amount by three (3).
        STEP FOUR: Subtract the amount determined in STEP THREE from the amount determined in STEP ONE.
    (c) For 1995, the budget agency shall certify the STEP FOUR amount to the county auditor on or before July 15, 1994. Not later than

January 31, 1995, the auditor of state shall distribute the STEP FOUR amount to the county auditor to be used to retire outstanding obligations for a qualified economic development tax project (as defined in IC 36-7-27-9 ).
    (d) After 1995, the STEP FOUR amount shall be distributed to the county auditor in January of the ensuing calendar year. The STEP FOUR amount shall be distributed by the county auditor to the civil taxing units within thirty (30) days after the county auditor receives the distribution. Each civil taxing unit's share equals the STEP FOUR amount multiplied by the quotient of:
        (1) the maximum permissible property tax levy under IC 6-1.1-18.5 for the civil taxing unit, plus, for a county, an amount equal to the property taxes imposed by the county in 1999 for the county's welfare administration fund and an amount equal to the property taxes imposed by the county in 2002 for the county family and children's fund; divided by
        (2) the sum of the maximum permissible property tax levies under IC 6-1.1-18.5 for all civil taxing units of the county, plus an amount equal to the property taxes imposed by the county in 1999 for the county's welfare administration fund and an amount equal to the property taxes imposed by the county in 2002 for the county family and children's fund.

SOURCE: IC 6-3.5-6-18; (01)IN1003.1.23. -->     SECTION 23. IC 6-3.5-6-18 , AS AMENDED BY P.L.273-1999, SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 18. (a) The revenue a county auditor receives under this chapter shall be used to:
        (1) replace the amount, if any, of property tax revenue lost due to the allowance of an increased homestead credit providing property tax relief within the county under section 13 of this chapter;
        (2) fund the operation of a public communications system and computer facilities district as provided in an election, if any, made by the county fiscal body under IC 36-8-15-19 (b);
        (3) fund the operation of a public transportation corporation as provided in an election, if any, made by the county fiscal body under IC 36-9-4-42 ;
        (4) make payments permitted under IC 36-7-15.1-17.5 ;
        (5) make payments permitted under subsection (I); (i); and
        (6) make distributions of distributive shares to the civil taxing units of a county.
    (b) The county auditor shall retain from the payments of the county's certified distribution, an amount equal to the revenue lost, if any, due

to the increase of the homestead credit providing property tax relief within the county under section 13 of this chapter. This money shall be distributed to the civil taxing units and school corporations of the county as though they were property tax collections and in such a manner that no civil taxing unit or school corporation shall suffer a net revenue loss due to the allowance of an increased homestead credit. the property tax relief.
    (c) The county auditor shall retain the amount, if any, specified by the county fiscal body for a particular calendar year under subsection (I), (i), IC 36-7-15.1-17.5 , IC 36-8-15-19 (b), and IC 36-9-4-42 from the county's certified distribution for that same calendar year. The county auditor shall distribute amounts retained under this subsection to the county.
    (d) All certified distribution revenues that are not retained and distributed under subsections (b) and (c) shall be distributed to the civil taxing units of the county as distributive shares.
    (e) The amount of distributive shares that each civil taxing unit in a county is entitled to receive during a month equals the product of the following:
        (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 total property taxes that are first due and payable to the civil taxing unit during the calendar year in which the month falls, plus, for a county, an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund and, after December 31, 2002, an amount equal to the property taxes imposed by the county in 2002 for the county family and children's fund. The denominator of the fraction equals the sum of the total property taxes that are first due and payable to all civil taxing units of the county during the calendar year in which the month falls, plus an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund and, after December 31, 2002, an amount equal to the property taxes imposed by the county in 2002 for the county family and children's fund.
    (f) The state board of tax commissioners 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.
    (g) Notwithstanding subsection (e), if a civil taxing unit of an

adopting county does not impose a property tax levy that is first due and payable in a calendar year in which distributive shares are being distributed under this section, that civil taxing unit is entitled to receive a part of the revenue to be distributed as distributive shares under this section within the county. The fractional amount such a civil taxing unit is entitled to receive each month during that calendar year equals the product of the following:
        (1) The amount to be distributed as distributive shares during that month; multiplied by
        (2) A fraction. The numerator of the fraction equals the budget of that civil taxing unit for that calendar year. The denominator of the fraction equals the aggregate budgets of all civil taxing units of that county for that calendar year.
    (h) If for a calendar year a civil taxing unit is allocated a part of a county's distributive shares by subsection (g), then the formula used in subsection (e) to determine all other civil taxing units' distributive shares shall be changed each month for that same year by reducing the amount to be distributed as distributive shares under subsection (e) by the amount of distributive shares allocated under subsection (g) for that same month. The state board of tax commissioners shall make any adjustments required by this subsection and provide them to the appropriate county auditors.
    (I) (i) Notwithstanding any other law, a county fiscal body may pledge revenues received under this chapter to the payment of bonds or lease rentals to finance a qualified economic development tax project under IC 36-7-27 in that county or in any other county if the county fiscal body determines that the project will promote significant opportunities for the gainful employment or retention of employment of the county's residents.

SOURCE: IC 6-3.5-6-18.5; (01)IN1003.1.24. -->     SECTION 24. IC 6-3.5-6-18.5 , AS AMENDED BY P.L.273-1999, SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 18.5. (a) This section applies to a county containing a consolidated city.
    (b) Notwithstanding section 18(e) of this chapter, the distributive shares that each civil taxing unit in a county containing a consolidated city is entitled to receive during a month equals the following:
        (1) For the calendar year beginning January 1, 1995, calculate the total amount of revenues that are to be distributed as distributive shares during that month multiplied by the following factor:
    Center Township    .0251
    Decatur Township    .00217
    Franklin Township    .0023
    Lawrence Township    .01177
    Perry Township    .01130
    Pike Township    .01865
    Warren Township    .01359
    Washington Township    .01346
    Wayne Township    .01307
    Lawrence-City    .00858
    Beech Grove    .00845
    Southport    .00025
    Speedway    .00722
    Indianapolis/Marion County    .86409
        (2) Notwithstanding subdivision (1), for the calendar year beginning January 1, 1995, the distributive shares for each civil taxing unit in a county containing a consolidated city shall be not less than the following:
    Center Township    $1,898,145
    Decatur Township    $164,103
    Franklin Township    $173,934
    Lawrence Township    $890,086
    Perry Township    $854,544
    Pike Township    $1,410,375
    Warren Township    $1,027,721
    Washington Township    $1,017,890
    Wayne Township    $988,397
    Lawrence-City    $648,848
    Beech Grove    $639,017
    Southport    $18,906
    Speedway    $546,000
        (3) For each year after 1995, calculate the total amount of revenues that are to be distributed as distributive shares during that month as follows:
            STEP ONE: Determine the total amount of revenues that were distributed as distributive shares during that month in calendar year 1995.
            STEP TWO: Determine the total amount of revenue that the department has certified as distributive shares for that month under section 17 of this chapter for the calendar year.
            STEP THREE: Subtract the STEP ONE result from the STEP TWO result.
            STEP FOUR: If the STEP THREE result is less than or equal to zero (0), multiply the STEP TWO result by the ratio established under subdivision (1).
            STEP FIVE: Determine the ratio of:
                (A) the maximum permissible property tax levy under IC 6-1.1-18.5 and IC 6-1.1-18.6 for each civil taxing unit for the calendar year in which the month falls, plus, for a county, an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund plus the property taxes imposed by the county in 2002 for the county family and children's fund; divided by
                (B) the sum of the maximum permissible property tax levies under IC 6-1.1-18.5 and IC 6-1.1-18.6 for all civil taxing units of the county during the calendar year in which the month falls, and an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund plus the property taxes imposed by the county in 2002 for the county family and children's fund.
            STEP SIX: If the STEP THREE result is greater than zero (0), the STEP ONE amount shall be distributed by multiplying the STEP ONE amount by the ratio established under subdivision (1).
            STEP SEVEN: For each taxing unit determine the STEP FIVE ratio multiplied by the STEP TWO amount.
            STEP EIGHT: For each civil taxing unit determine the difference between the STEP SEVEN amount minus the product of the STEP ONE amount multiplied by the ratio established under subdivision (1). The STEP THREE excess shall be distributed as provided in STEP NINE only to the civil taxing units that have a STEP EIGHT difference greater than or equal to zero (0).
            STEP NINE: For the civil taxing units qualifying for a distribution under STEP EIGHT, each civil taxing unit's share equals the STEP THREE excess multiplied by the ratio of:
                (A) the maximum permissible property tax levy under IC 6-1.1-18.5 and IC 6-1.1-18.6 for the qualifying civil taxing unit during the calendar year in which the month falls, plus, for a county, an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund plus the property taxes imposed by the county in 2002 for the county family and children's fund; divided by
                (B) the sum of the maximum permissible property tax levies

under IC 6-1.1-18.5 and IC 6-1.1-18.6 for all qualifying civil taxing units of the county during the calendar year in which the month falls, and an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund plus the property taxes imposed by the county in 2002 for the county family and children's fund.

SOURCE: IC 6-3.5-6-19; (01)IN1003.1.25. -->     SECTION 25. IC 6-3.5-6-19 , AS AMENDED BY P.L.273-1999, SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 19. (a) Except as provided in sections 13, 17.6(d), 18(e), and 18.5(b)(3) of this chapter, in determining the fractional share of distributive shares the civil taxing units of a county are entitled to receive under section 18 of this chapter during a calendar year, the state board of tax commissioners shall consider only property taxes imposed on tangible property subject to assessment in that county.
    (b) In determining the amount of distributive shares a civil taxing unit is entitled to receive under section 18(g) of this chapter, the state board of tax commissioners shall consider only the percentage of the civil taxing unit's budget that equals the ratio that the total assessed valuation that lies within the civil taxing unit and the county that has adopted the county option tax bears to the total assessed valuation that lies within the civil taxing unit.
    (c) The distributive shares to be allocated and distributed under this chapter shall be treated by each civil taxing unit as additional revenue for the purpose of fixing its budget for the budget year during which the distributive shares is to be distributed to the civil taxing unit.
    (d) In the case of a civil taxing unit that includes a consolidated city its fiscal body may distribute any revenue it receives under this chapter to any governmental entity located in its county except an excluded city, a township, or a school corporation.
SOURCE: IC 6-3.5-7-5; (01)IN1003.1.26. -->     SECTION 26. IC 6-3.5-7-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Except as provided in subsection (c), the county economic development income tax may be imposed on the adjusted gross income of county taxpayers. The entity that may impose the tax is:
        (1) the county income tax council (as defined in IC 6-3.5-6-1 ) if the county option income tax is in effect on January 1 of the year the county economic development income tax is imposed;
        (2) the county council if the county adjusted gross income tax is in effect on January 1 of the year the county economic development tax is imposed; or
        (3) the county income tax council or the county council, whichever acts first, for a county not covered by subdivision (1) or (2).
To impose the county economic development income tax, a county income tax council shall use the procedures set forth in IC 6-3.5-6 concerning the imposition of the county option income tax.
    (b) Except as provided in subsections (c) and (g), the county economic development income tax may be imposed at a rate of:
        (1) one-tenth percent (0.1%);
        (2) two-tenths percent (0.2%);
        (3) twenty-five hundredths percent (0.25%);
        (4) three-tenths percent (0.3%);
        (5) thirty-five hundredths percent (0.35%);
        (6) four-tenths percent (0.4%);
        (7) forty-five hundredths percent (0.45%); or
        (8) five-tenths percent (0.5%);
on the adjusted gross income of county taxpayers.
    (c) Except as provided in subsection (h) or (i), the county economic development income tax rate plus the county adjusted gross income tax rate, if any, that are in effect on January 1 of a year may not exceed one and twenty-five hundredths percent (1.25%). Except as provided in subsection subsections (g) and (j), the county economic development tax rate plus the county option income tax rate, if any, that are in effect on January 1 of a year may not exceed one percent (1%).
    (d) To impose the county economic development income tax, the appropriate body must, after January 1 but before April 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
    "The ________ County _________ imposes the county economic development income tax on the county taxpayers of _________ County. The county economic development income tax is imposed at a rate of _________ percent (____%) on the county taxpayers of the county. This tax takes effect July 1 of this year."
    (e) Any ordinance adopted under this section takes effect July 1 of the year the ordinance is adopted.
    (f) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
    (g) This subsection applies to a county having a population of more than one hundred twenty-nine thousand (129,000) but less than one hundred thirty thousand six hundred (130,600). In addition to the rates permitted by subsection (b), the:
        (1) county economic development income tax may be imposed at a rate of:
            (A) fifteen-hundredths percent (0.15%);
            (B) two-tenths percent (0.2%); or
            (C) twenty-five hundredths percent (0.25%); and
        (2) county economic development income tax rate plus the county option income tax rate that are in effect on January 1 of a year may equal up to one and twenty-five hundredths percent (1.25%);
if the county income tax council makes a determination to impose rates under this subsection and section 22 of this chapter.
    (h) For a county having a population of more than thirty-seven thousand (37,000) but less than thirty-seven thousand eight hundred (37,800), the county economic development income tax rate plus the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and thirty-five hundredths percent (1.35%) if the county has imposed the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%) under IC 6-3.5-1.1-2.5.
    (i) For a county having a population of more than twelve thousand six hundred (12,600) but less than thirteen thousand (13,000), the county economic development income tax rate plus the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and fifty-five hundredths percent (1.55%).
    (j) For a county that has adopted an ordinance under IC 6-3.5-6-13 , the county economic development income tax rate plus the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one percent (1%) plus the lesser of:
        (1) twenty-five hundredths percent (0.25%); or
        (2) the part of the rate that exceeds one percent (1%) and that is dedicated to property tax relief under the ordinance.

SOURCE: IC 6-3.5-7-12; (01)IN1003.1.27. -->     SECTION 27. IC 6-3.5-7-12 , AS AMENDED BY P.L.14-2000, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 12. (a) Except as provided in section 23 of this chapter, the county auditor shall distribute in the manner specified in this section the certified distribution to the county.
    (b) Except as provided in subsections (c) and (h) and section 15 of this chapter, the amount of the certified distribution that the county and each city or town in a county is entitled to receive during May and November of each year equals the product of the following:
        (1) The amount of the certified distribution for that month; multiplied by
        (2) A fraction. The numerator of the fraction equals the sum of the

following:
            (A) Total property taxes that are first due and payable to the county, city, or town during the calendar year in which the month falls; plus
            (B) For a county, an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund and an amount equal to the property taxes imposed by the county in 2002 for the county family and children's fund.
        The denominator of the fraction equals the sum of the total property taxes that are first due and payable to the county and all cities and towns of the county during the calendar year in which the month falls, plus an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund and an amount equal to the property taxes imposed by the county in 2002 for the county family and children's fund.
    (c) This subsection applies to a county council or county income tax council that imposes a tax under this chapter after June 1, 1992. The body imposing the tax may adopt an ordinance before July 1 of a year to provide for the distribution of certified distributions under this subsection instead of a distribution under subsection (b). The following apply if an ordinance is adopted under this subsection:
        (1) The ordinance is effective January 1 of the following year.
        (2) The amount of the certified distribution that the county and each city and town in the county is entitled to receive during May and November of each year equals the product of:
            (A) the amount of the certified distribution for the month; multiplied by
            (B) a fraction. For a city or town, the numerator of the fraction equals the population of the city or the town. For a county, the numerator of the fraction equals the population of the part of the county that is not located in a city or town. The denominator of the fraction equals the sum of the population of all cities and towns located in the county and the population of the part of the county that is not located in a city or town.
        (3) The ordinance may be made irrevocable for the duration of specified lease rental or debt service payments.
    (d) The body imposing the tax may not adopt an ordinance under subsection (c) if, before the adoption of the proposed ordinance, any of the following have pledged the county economic development income tax for any purpose permitted by IC 5-1-14 or any other statute:


        (1) The county.
        (2) A city or town in the county.
        (3) A commission, a board, a department, or an authority that is authorized by statute to pledge the county economic development income tax.
    (e) The state board of tax commissioners shall provide each county auditor with the fractional amount of the certified distribution that the county and each city or town in the county is entitled to receive under this section.
    (f) Money received by a county, city, or town under this section shall be deposited in the unit's economic development income tax fund.
    (g) Except as provided in subsection (b)(2)(B), in determining the fractional amount of the certified distribution the county and its cities and towns are entitled to receive under subsection (b) during a calendar year, the state board of tax commissioners shall consider only property taxes imposed on tangible property subject to assessment in that county.
    (h) In a county having a consolidated city, only the consolidated city is entitled to the certified distribution, subject to the requirements of section 15 of this chapter.
SOURCE: IC 6-5.5-8-2; (01)IN1003.1.28. -->     SECTION 28. IC 6-5.5-8-2 , AS AMENDED BY P.L.273-1999, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) On or before February 1, May 1, August 1, and December 1 of each year the auditor of state shall transfer to each county auditor for distribution to the taxing units (as defined in IC 6-1.1-1-21 ) in the county, an amount equal to one-fourth (1/4) of the sum of the guaranteed amounts for all the taxing units of the county. On or before August 1 of each year the auditor of state shall transfer to each county auditor the supplemental distribution for the county for the year. For purposes of determining distributions under subsection (b), the state board of tax commissioners shall determine a state welfare allocation for each county calculated as follows:
        (1) For 2000 and each year thereafter, the state welfare allocation for each county equals the greater of zero (0) or the amount determined under the following formula:
            STEP ONE: For:
                 (A) 1997, 1998, and 1999, determine the result of:
                (A) (i) the amounts appropriated by the county in the year for the county's county welfare fund and county welfare administration fund; divided by
                (B) (ii) the amounts appropriated by all the taxing units in the county in the year; and
                (B) 2000, 2001, and 2002, determine the result of:
                (i) the amounts appropriated by the county in the year for the county's county family and children's fund; divided by
                (ii) the amounts appropriated by all the taxing units in the county in the year.

            STEP TWO: Determine the sum of the results determined in STEP ONE.
            STEP THREE: Divide the STEP TWO result by three (3).
            STEP FOUR: Determine the amount that would otherwise be distributed to all the taxing units in the county under subsection (b) without regard to this subdivision.
            STEP FIVE: Determine the result of:
                (A) the STEP FOUR amount; multiplied by
                (B) the STEP THREE result.
        (2) The state welfare allocation shall be deducted from the distributions otherwise payable under subsection (b) to the taxing unit that is a county and shall be deposited in a special account within the state general fund.
    (b) A taxing unit's guaranteed distribution for a year is the greater of zero (0) or an amount equal to:
        (1) the amount received by the taxing unit under IC 6-5-10 and IC 6-5-11 in 1989; minus
        (2) the amount to be received by the taxing unit in the year of the distribution, as determined by the state board of tax commissioners, from property taxes attributable to the personal property of banks, exclusive of the property taxes attributable to personal property leased by banks as the lessor where the possession of the personal property is transferred to the lessee; minus
        (3) in the case of a taxing unit that is a county, the amount that would have been received by the taxing unit in the year of the distribution, as determined by the state board of tax commissioners, from property taxes that:
            (A) were calculated for the county's county welfare fund and county welfare administration fund for 2000 but were not imposed because of the repeal of IC 12-19-3 and IC 12-19-4 ; and
            (B) would have been attributable to the personal property of banks, exclusive of the property taxes attributable to personal property leased by banks as the lessor where the possession of the personal property is transferred to the lessee.
    (c) The amount of the supplemental distribution for a county for a year shall be determined using the following formula:
        STEP ONE: Determine the greater of zero (0) or the difference between:
            (A) one-half (1/2) of the taxes that the department estimates will be paid under this article during the year; minus
            (B) the sum of all the guaranteed distributions, before the subtraction of all state welfare allocations under subsection (a), for all taxing units in all counties plus the bank personal property taxes to be received by all taxing units in all counties, as determined under subsection (b)(2) for the year.
        STEP TWO: Determine the quotient of:
            (A) the amount received under IC 6-5-10 and IC 6-5-11 in 1989 by all taxing units in the county; divided by
            (B) the sum of the amounts received under IC 6-5-10 and IC 6-5-11 in 1989 by all taxing units in all counties.
        STEP THREE: Determine the product of:
            (A) the amount determined in STEP ONE; multiplied by
            (B) the amount determined in STEP TWO.
        STEP FOUR: Determine the greater of zero (0) or the difference between:
            (A) the amount of supplemental distribution determined in STEP THREE for the county; minus
            (B) the amount of refunds granted under IC 6-5-10-7 that have yet to be reimbursed to the state by the county treasurer under IC 6-5-10-13.
For the supplemental distribution made on or before August 1 of each year, the department shall adjust the amount of each county's supplemental distribution to reflect the actual taxes paid under this article for the preceding year.
    (d) Except as provided in subsection (f), the amount of the supplemental distribution for each taxing unit shall be determined using the following formula:
        STEP ONE: Determine the quotient of:
            (A) the amount received by the taxing unit under IC 6-5-10 and IC 6-5-11 in 1989; divided by
            (B) the sum of the amounts used in STEP ONE (A) for all taxing units located in the county.
        STEP TWO: Determine the product of:
            (A) the amount determined in STEP ONE; multiplied by
            (B) the supplemental distribution for the county, as determined in subsection (c), STEP FOUR.
    (e) The county auditor shall distribute the guaranteed and supplemental distributions received under subsection (a) to the taxing units in the county at the same time that the county auditor makes the semiannual distribution of real property taxes to the taxing units.
    (f) The amount of a supplemental distribution paid to a taxing unit that is a county shall be reduced by an amount equal to:
        (1) the amount the county would receive under subsection (d) without regard to this subsection; minus
        (2) an amount equal to:
            (A) the amount under subdivision (1); multiplied by
            (B) the result of the following:
                (I) (i) Determine the amounts appropriated by the county in 1997, 1998, and 1999, from the county's county welfare fund and county welfare administration fund plus the amounts appropriated by the county in 2000, 2001, and 2002, from the county's county family and children's fund, divided by the total amounts appropriated by all the taxing units in the county in the year.
                (ii) Divide the amount determined in item (I) (i) by three (3).
SOURCE: IC 6-6-5-10; (01)IN1003.1.29. -->     SECTION 29. IC 6-6-5-10 , AS AMENDED BY P.L.273-1999, SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 10. (a) The bureau shall establish procedures necessary for the collection of the tax imposed by this chapter and for the proper accounting for the same. The necessary forms and records shall be subject to approval by the state board of accounts.
    (b) The county treasurer upon receiving the excise tax collections shall receipt such collections into a separate account for settlement thereof at the same time as property taxes are accounted for and settled in June and December of each year, with the right and duty of the treasurer and auditor to make advances prior to the time of final settlement of such property taxes in the same manner as provided in IC 5-13-6-3.
    (c) The county auditor shall determine the total amount of excise taxes collected for each taxing unit in the county and the amount so collected (and the distributions received under section 9.5 of this chapter) shall be apportioned and distributed among the respective funds of each taxing unit in the same manner and at the same time as property taxes are apportioned and distributed. However, for purposes of determining distributions under this section for 2000 and each year thereafter, the state welfare allocation for each county equals the greater of zero (0) or the amount determined under STEP FIVE of the following STEPS:
        STEP ONE: For:
             (A) 1997, 1998, and 1999, determine the result of:
                (I) (i) the amounts appropriated by the county in the year from the county's county welfare fund and county welfare administration fund; divided by
                (ii) the total amounts appropriated by all the taxing units in the county in the year; and
            (B) 2000, 2001, and 2002, determine the result of:
                (i) the amounts appropriated by the county in the year from the county's county family and children's fund; divided by
                (ii) the total amounts appropriated by all the taxing units in the county in the year.

        STEP TWO: Determine the sum of the results determined in STEP ONE.
        STEP THREE: Divide the STEP TWO result by three (3).
        STEP FOUR: Determine the amount that would otherwise be distributed to all the taxing units in the county under this subsection without regard to this subdivision.
        STEP FIVE: Determine the result of:
            (I) (A) the STEP FOUR amount; multiplied by
            (ii) (B) the STEP THREE result.
The state welfare allocation shall be deducted from the total amount available for apportionment and distribution to taxing units under this section before any apportionment and distribution is made. The county auditor shall remit the state welfare allocation to the treasurer of state for deposit in a special account within the state general fund.
    (d) Such determination shall be made from copies of vehicle registration forms furnished by the bureau of motor vehicles. Prior to such determination, the county assessor of each county shall, from copies of registration forms, cause information pertaining to legal residence of persons owning taxable vehicles to be verified from his records, to the extent such verification can be so made. He shall further identify and verify from his records the several taxing units within which such persons reside.
    (e) Such verifications shall be done by not later than thirty (30) days after receipt of vehicle registration forms by the county assessor, and the assessor shall certify such information to the county auditor for his use as soon as it is checked and completed.
SOURCE: IC 12-13-5-5; (01)IN1003.1.30. -->     SECTION 30. IC 12-13-5-5 , AS AMENDED BY P.L.273-1999, SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) Each county auditor shall keep records

and make reports relating to the county welfare fund (before July 1, 2001), the family and children's fund (before July 1, 2004), and other financial transactions as required under IC 12-13 through IC 12-19 and as required by the division.
    (b) All records provided for in IC 12-13 through IC 12-19 shall be kept, prepared, and submitted in the form required by the division and the state board of accounts.

SOURCE: IC 12-17-3-2; (01)IN1003.1.31. -->     SECTION 31. IC 12-17-3-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: 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).
SOURCE: IC 12-19-1-21; (01)IN1003.1.32. -->     SECTION 32. IC 12-19-1-21 , AS ADDED BY P.L.273-1999, SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 21. (a) 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.
     (b) Notwithstanding any other law, after December 31, 2002, a county may not impose a property tax levy for the county's family and children's fund.
SOURCE: IC 12-19-1-22; (01)IN1003.1.33. -->     SECTION 33. IC 12-19-1-22 , AS ADDED BY P.L.273-1999, SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 22. (a) All bonds issued and loans made under IC 12-1-11 (before its repeal) or this article:
         (1) before January 1, 2000, that are payable from property taxes imposed under IC 12-19-3 (before its repeal); or
        (2) before January 1, 2003, that are payable from property taxes imposed under IC  12-19-7-3 (before its amendment to eliminate the authority to impose a property tax levy);

(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; (01)IN1003.1.34. -->     SECTION 34. IC 12-19-1-23 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 23. (a) The division may establish a children's services incentive program to provide incentives for county offices to improve children's services and contain costs relating to expenditures from the family and children's fund under IC 12-19-7.
    (b) Any financial incentives under the program are subject to amounts appropriated to the division for the program.
    (c) Any financial incentives provided to a county office under this section shall be appropriated, with the approval of the director, for the county's early intervention plan in accordance with IC 31-34-24 and IC 31-37-24.
    (d) The division shall adopt rules under IC 4-22-2 to carry out this section.

SOURCE: IC 12-19-1.5-6; (01)IN1003.1.35. -->     SECTION 35. IC 12-19-1.5-6 , AS ADDED BY P.L.273-1999, SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 6. As used in this chapter, "replacement amount" means the sum of:
         (1) the property taxes imposed on the assessed value of property in the allocation area in excess of the base assessed value in 1999 for:
            (1) (A) the county welfare fund; and
            (2) (B) the county welfare administration fund; and
        (2) the property taxes imposed on the assessed value of property in the allocation area that exceed the base assessed value in 2002 for the county family and children's fund.

SOURCE: IC 12-19-1.5-8; (01)IN1003.1.36. -->     SECTION 36. IC 12-19-1.5-8 , AS ADDED BY P.L.273-1999, SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. (a) This chapter applies to an allocation area:
         (1) in which:
            (1) (A) the holders of obligations received a pledge before July 1, 1999, of tax increment revenues to repay any part of the obligations due after December 31, 1999; and
            (2) (B) the elimination of a county welfare fund property tax levy or a county welfare administration fund property tax levy adversely affects the ability of the governing body to repay the obligations described in subdivision (1). clause (A); or
        (2) in which:
            (A) the holders of obligations received a pledge before July 1, 2002, of tax increment revenues to repay any part of the obligations due after December 31, 2002; and
            (B) the elimination of a county family and children's fund property tax levy adversely affects the ability of the governing body to repay the obligations described in clause (A).

    (b) A governing body may use one (1) or more of the procedures described in sections 9 through 11 of this chapter to provide sufficient funds to repay the obligations described in subsection (a). The amount raised each year may not exceed the replacement amount.
SOURCE: IC 12-19-1.5-9; (01)IN1003.1.37. -->     SECTION 37. IC 12-19-1.5-9 , AS ADDED BY P.L.273-1999, SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. (a) A governing body may, after a public hearing, impose a special assessment on the owners of property that is located in an allocation area to repay:
         (1) a bond or an obligation described in section 8 section 8(a)(1) of this chapter that comes due after December 31, 1999; or
        (2) a bond or an obligation described in section 8(a)(2) of this chapter that comes due after December 31, 2002.

The amount of a special assessment for a taxpayer shall be determined by multiplying the replacement amount by a fraction, the denominator of which is the total incremental assessed value in the allocation area, and the numerator of which is the incremental assessed value of the taxpayer's property in the allocation area.
    (b) Before a public hearing under subsection (a) may be held, the governing body must publish notice of the hearing under IC 5-3-1. The notice must state that the governing body will meet to consider whether a special assessment should be imposed under this chapter and whether the special assessment will help the governing body realize the redevelopment or economic development objectives for the allocation area or honor its obligations related to the allocation area. The notice must also name a date when the governing body will receive and hear remonstrances and objections from persons affected by the special assessment. All persons affected by the hearing, including all taxpayers within the allocation area, shall be considered notified of the pendency of the hearing and of subsequent acts, hearings, and orders of the governing body by the notice. At the hearing, which may be adjourned from time to time, the governing body shall hear all persons affected by the proceedings and shall consider all written remonstrances and objections that have been filed. The only grounds for remonstrance or

objection are that the special assessment will not help the governing body realize the redevelopment or economic development objectives for the allocation area or honor its obligations related to the allocation area. After considering the evidence presented, the governing body shall take final action concerning the proposed special assessment. The final action taken by the governing body shall be recorded and is final and conclusive, except that an appeal may be taken in the manner prescribed by subsection (c).
    (c) A person who filed a written remonstrance with a governing body under subsection (b) and is aggrieved by the final action taken may, within ten (10) days after that final action, file in the office of the clerk of the circuit or superior court a copy of the order of the governing body and the person's remonstrance or objection against that final action, together with a bond conditioned to pay the costs of appeal if the appeal is determined against the person. The only ground of remonstrance or objection that the court may hear is whether the proposed assessment will help achieve the redevelopment of economic development objectives for the allocation area or honor its obligations related to the allocation area. An appeal under this subsection shall be promptly heard by the court without a jury. All remonstrances or objections upon which an appeal has been taken must be consolidated, heard, and determined within thirty (30) days after the time of the filing of the appeal. The court shall hear evidence on the remonstrances or objections, and may confirm the final action of the governing body or sustain the remonstrances or objections. The judgment of the court is final and conclusive, unless an appeal is taken as in other civil actions.
    (d) The maximum amount of a special assessment under this section may not exceed the replacement amount.
    (e) A special assessment shall be imposed and collected in the same manner as ad valorem property taxes are imposed and collected.

SOURCE: IC 12-19-7-1; (01)IN1003.1.38. -->     SECTION 38. IC 12-19-7-1 , AS AMENDED BY P.L.139-2000, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 1. As used in this chapter, "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 to be paid by a county from the county family and children's fund under  IC 31-40-1-2, and all costs required to be paid by a county 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.
         (4) Family services (as defined in IC 31-9-2-45 ).
SOURCE: IC 12-19-7-3; (01)IN1003.1.39. -->     SECTION 39. IC 12-19-7-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) A family and children's fund is established in each county. The fund shall be raised by a separate tax levy (the county family and children property tax levy) that:
        (1) is in addition to all other tax levies authorized; and
        (2) shall be levied annually by the county fiscal body on all taxable property in the county in the amount necessary to raise the part of the fund that the county must raise to pay the items, awards, claims, allowances, assistance, and other expenses set forth in the annual budget under section 6 of this chapter.
    (b) The tax imposed under this section shall be collected as other state and county ad valorem taxes are collected. Notwithstanding any other law, after December 31, 2002, a county may not impose a property tax levy for the county family and children's fund.
    (c) The following shall be paid into the county treasury and constitute the family and children's fund:
        (1) All receipts from the tax imposed under this section.
        (2) (1) All grants-in-aid, money allocated by the division to the county whether received from the federal government or state government.
        (3) (2) Any other money required by law to be placed in the fund.
    (d) The fund is available for the purpose of paying expenses and obligations set forth in the annual budget that is submitted and approved.
SOURCE: IC 12-19-7-6; (01)IN1003.1.40. -->     SECTION 40. IC 12-19-7-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 6. (a) The county director, upon the advice of the judges of the courts with juvenile jurisdiction in the county, shall annually compile and adopt a child services budget, which must be in a form prescribed by the state board of accounts. For calendar years before 2003, the budget may not

exceed the levy limitation set forth in IC 6-1.1-18.6.
    (b) The budget must contain an estimate of the amount of money that will be needed by the county office during the fiscal next calendar year to defray the expenses and obligations incurred by the county office in the payment of child services. for children adjudicated to be children in need of services or delinquent children and other related services but not including the payment of AFDC.

SOURCE: IC 12-19-7-7; (01)IN1003.1.41. -->     SECTION 41. IC 12-19-7-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. (a) The county director shall, with the assistance of the judges of courts with juvenile jurisdiction in the county and at the same time the budget is compiled and adopted, recommend to the division the tax levy that the director and judges determine will be required to raise the amount of revenue necessary to pay the expenses and obligations of the county office set forth in the budget under section 6 of this chapter. However, the tax levy may not exceed the maximum permissible levy set forth in IC 6-1.1-18.6 and the budget may not exceed the levy limitation set forth in IC 6-1.1-18.
    (b) After the county budget has been compiled, the county director shall submit a copy of the budget and the tax levy recommended by the county director, and the judges of courts with juvenile jurisdiction in the county, to the division not later than April 1 of each year. The division shall examine the budget and the tax levy for the purpose of determining whether, in the judgment of the division,
        (1) the appropriations requested in the budget will be adequate to defray the expenses and obligations that will be incurred by the county office in the payment of child services for the next fiscal calendar year. and
(2) the tax levy recommended will yield the amount of the appropriation set forth in the budget.  The budget submitted under this section is not subject to IC 6-1.1-17 and IC 6-1.1-18.
SOURCE: IC 12-19-7-8; (01)IN1003.1.42. -->     SECTION 42. IC 12-19-7-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) The division may do either of the following after examining a budget submitted by the county office: director:
        (1) Increase or decrease the amount of the budget or an item of the budget. subject to the maximum levy set forth in IC 6-1.1-18.6.
        (2) Approve the budget as compiled by the county director. and judges of courts with juvenile jurisdiction in the county.
        (3) Recommend the increase or decrease of the tax levy, subject to the maximum levy set forth in IC 6-1.1-18.6.
        (4) Approve the tax levy as recommended by the county director and judges of courts with juvenile jurisdiction in the county.
     (b) The total amount of all approved child services budgets may not exceed the total amount appropriated for child services for the applicable state fiscal year.
SOURCE: IC 12-19-7-11; (01)IN1003.1.43. -->     SECTION 43. IC 12-19-7-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. (a) In September of each year, at the time provided by law, The county fiscal body shall do the following:
        (1) make the appropriations out of the family and children's fund that are:
        (A) (1) based on the budget as submitted; approved by the division; and
        (B) (2) necessary to maintain the child services of the county for the next fiscal calendar year. subject to the maximum levy set forth in IC 6-1.1-18.6.
        (2) Levy a tax in an amount necessary to produce the appropriated money.
     (b) The division shall make advances to the county family and children's fund to ensure that the amounts deposited in the county family and children's fund are adequate to meet the expenses that are to be paid from the fund. Amounts necessary to make the advances under this subsection are appropriated from the state general fund.
    (c) The provisions of IC 6-1.1-18 concerning appropriations do not apply to appropriations of money from a county family and children's fund.
    (d) Notwithstanding IC 36, a county is not required to publish notice of any claim or allowance that will be paid from the county family and children's fund.

SOURCE: IC 12-19-7-11.1; (01)IN1003.1.44. -->     SECTION 44. IC 12-19-7-11.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11.1. (a) The judges of the courts with juvenile jurisdiction in the county and the county director shall meet with the county fiscal body county's early intervention team established by IC 31-34-24 at a public meeting
        (1) in April; and
        (2) after June 30 and before October 1;
in before April 1 of each year.
    (b) At a meeting required in subsection (a), the county director and judges with juvenile jurisdiction shall present to the county fiscal body and the judges the following reports: information:
        (1) Expenditures made
            (A) during the immediately preceding calendar quarter current calendar year from the family and children's fund in comparison to one-fourth (1/4) of the budget and appropriations approved by the county fiscal body division for the calendar year. and
            (B) from the fund in the corresponding calendar quarter of each of the two (2) preceding calendar years.
        (2) Obligations incurred through the end of the immediately preceding calendar quarter during the current calendar year that will be payable from the family and children's fund during the remainder of the calendar year. or in any subsequent calendar year.
        (3) The number of children, by category, for whom the family and children's fund was required to provide funds for services during the immediately preceding calendar quarter, current calendar year, in comparison to the corresponding calendar quarter of each of the two (2) preceding calendar years preceding the current calendar year.
        (4) The number and type of out-of-home placements, by category, for which the family and children's fund was required to provide funds for foster home care or institutional placement, and the average daily, weekly or monthly cost of out-of-home placement care and services by category, during the immediately preceding calendar quarter, current calendar year, in comparison to the corresponding calendar quarter of each of the two (2) preceding calendar years preceding the current calendar year.
        (5) The number of children, by category, for whom the family and children's fund was required to provide funds for services for children residing with the child's parent, guardian or custodian (other than foster home or institutional placement), and the average monthly cost of those services, during the immediately preceding calendar quarter, current calendar year, in comparison to the corresponding calendar quarter for each of the two (2) preceding calendar years preceding the current calendar year.
    (c) In preparing the reports information described in subsection (b), the county director and judges may use the best information data reasonably available from the records of the courts, the county office, and the county family and children's fund for calendar years before 1998. division.
    (d) At each the meeting described in subsection (a), the county fiscal body, judges and county director may
        (1) discuss and suggest procedures to provide child welfare services in the most effective and cost-efficient manner. and
        (2) consider actions needed, including revision of budgeting procedures, to eliminate or minimize any anticipated need for short term borrowing for the family and children's fund under any provisions of this chapter or IC 12-19-5.
SOURCE: IC 12-19-7-15; (01)IN1003.1.45. -->     SECTION 45. IC 12-19-7-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15. (a) If at any time the county director determines that the family and children's fund is exhausted or will be exhausted before the close of a fiscal calendar year, the county director shall prepare an estimate and statement showing the amount of money, in addition to the money already made available, that will be necessary to defray the expenses of the county office and pay the obligations of the county office, excluding administrative expenses and facilities, supplies, and equipment expenses for the county office, in the administration of the county office's activities for the unexpired part of the fiscal calendar year.
    (b) The county director shall do the following:
        (1) Certify the estimate and statement to the county executive. director.
        (2) File the estimate and a statement with the county auditor. director concerning:
            (A) the reasons the family and children's fund is exhausted or will be exhausted; and
            (B) what actions have been taken by the county office to avoid the exhaustion of the fund.

SOURCE: IC 12-19-7-21.5; (01)IN1003.1.46. -->     SECTION 46. IC 12-19-7-21.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 21.5. (a) Notwithstanding any other law, after December 31, 2002, the state shall fund one hundred percent (100%) of the programs, services, and activities that were payable before January 1, 2003, from county family and children's fund property tax levies.
    (b) Any money remaining in a county family and children's fund on January 1, 2003, must be used for services previously payable from the county family and children's fund. Fund balances in each county family and children's fund are available to the division of family and children beginning January 1, 2003, for use in fulfilling the requirements previously paid from the county family and children's fund within each county.
    (c) With the approval of the governor and the budget agency, money appropriated to the division of family and children for

programs, services, and activities described in subsection (a) may be augmented from the state general fund.

SOURCE: IC 31-31-5-4; (01)IN1003.1.47. -->     SECTION 47. IC 31-31-5-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 4. A probation officer shall, for the purpose of carrying out the juvenile law:
        (1) conduct such investigations and prepare such reports and recommendations as the court directs and keep a written record of those investigations, reports, and recommendations;
        (2) receive and examine complaints and allegations concerning matters covered by the juvenile law and make preliminary inquiries and investigations;
        (3) implement informal adjustments;
        (4) prepare and submit the predisposition report required for a dispositional hearing under the juvenile law;
        (5) supervise and assist by all suitable methods a child placed on probation or in the probation officer's care by order of the court or other legal authority;
        (6) with the cooperation and assistance of the county office of family and children, prepare and monitor performance of any case plan, and ensure compliance with all other procedures, as necessary or appropriate to satisfy the requirements of Title IV-E of the Social Security Act, 42 U.S.C. 670 et seq., and applicable federal regulations, for federal financial participation in the payment of the cost of services provided to an eligible child;
         (7) keep complete records of the probation officer's work and comply with any order of the court concerning the collection, protection, and distribution of any money or other property coming into the probation officer's hands; and
        (7) (8) perform such other functions as are designated by the juvenile law or by the court in accordance with the juvenile law.
SOURCE: IC 31-34-18-1.3; (01)IN1003.1.48. -->     SECTION 48. IC 31-34-18-1.3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec 1.3. (a) The individuals participating in a meeting described in section 1.1 of this chapter shall assist the person preparing the report in recommending the care, treatment, rehabilitation, or placement of the child.
    (b) The individuals shall inform the person preparing the report of resources and programs that are available for the child.
     (c) The probation officer or caseworker shall collect, maintain, and complete financial eligibility forms designated by the director to assist in obtaining federal reimbursement and other reimbursement.
SOURCE: IC 31-34-18-3; (01)IN1003.1.49. -->     SECTION 49. IC 31-34-18-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 3. The probation officer or caseworker shall also collect information and prepare a financial report, in the form prescribed by the division, on the parent or the estate of the child to assist the juvenile court and the county office in:
         (1) determining the person's financial responsibility; and
        (2) obtaining federal reimbursement;

for services provided for the child or the person.
SOURCE: IC 31-34-24-4; (01)IN1003.1.50. -->     SECTION 50. IC 31-34-24-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) Before March 1, 1998, each county shall establish a team to develop a plan as described in this chapter.
    (b) The team is composed of the following members, each of whom serves at the pleasure of the member's appointing authority:
        (1) Two (2) members appointed by the judge or judges of the juvenile court, one (1) of whom is a representative of the probation department.
        (2) Two (2) members appointed by the director of the county office as follows:
            (A) One (1) is a member of the child welfare staff of the county office.
            (B) One (1) is either:
                (i) an interested resident of the county; or
                (ii) a representative of a social service agency;
            who knows of child welfare needs and services available to residents of the county.
        (3) One (1) member appointed by the superintendent of the largest school corporation in the county.
        (4) If:
            (A) two (2) school corporations are located within the county, one (1) member appointed by the superintendent of the second largest school corporation in the county; or
            (B) more than two (2) school corporations are located within the county, one (1) member appointed by the county fiscal body as a representative of school corporations other than the largest school corporation in the county.
        (5) One (1) member appointed by the county fiscal body.
        (6) (5) One (1) member representing the community mental health center (as defined under IC 12-7-2-38 ) serving the county, appointed by the director of the community mental health center. However, if more than one (1) community mental health center serves the county, the member shall be appointed by the county

fiscal body.
        (7) (6) One (1) or more additional members appointed by the chairperson of the team, county director, from among interested or knowledgeable residents of the community or representatives of agencies providing social services to or for children in the county.

SOURCE: IC 31-34-24-11; (01)IN1003.1.51. -->     SECTION 51. IC 31-34-24-11 , AS AMENDED BY P.L.273-1999, SECTION 103, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. The director or the state superintendent of public instruction may, not later than thirty (30) days after receiving the plan, transmit to the team and the county fiscal body director any comments, including recommendations for modification of the plan, that the director or the state superintendent of public instruction considers appropriate.
SOURCE: IC 31-34-24-12; (01)IN1003.1.52. -->     SECTION 52. IC 31-34-24-12 , AS AMENDED BY P.L.273-1999, SECTION 104, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 12. Not later than sixty (60) days after receiving the plan, the county fiscal body director shall do one (1) of the following:
        (1) Approve the plan as submitted by the team.
        (2) Approve the plan with amendments, modifications, or revisions adopted by the county fiscal body.
        (3) (2) Return the plan to the team with directions concerning:
            (A) subjects for further study and reconsideration; and
            (B) resubmission of a revised plan.
SOURCE: IC 31-34-24-14; (01)IN1003.1.53. -->     SECTION 53. IC 31-34-24-14 , AS AMENDED BY P.L.273-1999, SECTION 105, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. (a) The team shall meet at least one (1) time each year to do the following:
        (1) Develop, review, or revise a strategy that identifies:
            (A) the manner in which prevention and early intervention services will be provided or improved;
            (B) how local collaboration will improve children's services; and
            (C) how different funds can be used to serve children and families more effectively.
        (2) Reorganize as needed and select its vice chairperson for the ensuing year.
        (3) Review the implementation of the plan and prepare revisions, additions, or updates of the plan that the team considers necessary or appropriate to improve the quality and efficiency of early intervention child welfare services provided in accordance with

the plan.
        (4) Prepare and submit to the county fiscal body director and the superintendent of public instruction a report on the operations of the plan during the preceding year and a revised and updated plan for the ensuing year.
    (b) The chairperson or vice chairperson of the team or the county fiscal body may convene any additional meetings of the team that are, in the chairperson's or vice chairperson's opinion, necessary or appropriate.

SOURCE: IC 31-34-24-15; (01)IN1003.1.54. -->     SECTION 54. IC 31-34-24-15 , AS AMENDED BY P.L.273-1999, SECTION 106, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15. The team or the county fiscal body shall transmit copies of the plan, each annual report, and each revised plan to the following:
        (1) The director.
        (2) The state superintendent of public instruction.
        (3) The county office.
        (4) The juvenile court.
        (5) The superintendent of each public school corporation in the county.
        (6) The local step ahead council.
        (7) Any public or private agency that:
            (A) provides services to families and children in the county that requests information about the plan; or
            (B) the team has identified as a provider of services relevant to the plan.
SOURCE: IC 31-34-24-16; (01)IN1003.1.55. -->     SECTION 55. IC 31-34-24-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 16. The team or the county fiscal body shall publicize to residents of the county the existence and availability of the plan.
SOURCE: IC 31-37-24-4; (01)IN1003.1.56. -->     SECTION 56. IC 31-37-24-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) Before March 1, 1998, each county shall establish a team to develop a plan as described in this chapter.
    (b) The team is composed of the following members, each of whom serves at the pleasure of the member's appointing authority:
        (1) Two (2) members appointed by the judge or judges of the juvenile court, one (1) of whom is a representative of the probation department.
        (2) Two (2) members appointed by the director of the county office as follows:
            (A) One (1) is a member of the child welfare staff of the

county office.
            (B) One (1) is either:
                (i) an interested resident of the county; or
                (ii) a representative of a social service agency;
            who knows of child welfare needs and services available to residents of the county.
        (3) One (1) member appointed by the superintendent of the largest school corporation in the county.
        (4) If:
            (A) two (2) school corporations are located within the county, one (1) member appointed by the superintendent of the second largest school corporation in the county; or
            (B) more than two (2) school corporations are located within the county, one (1) member appointed by the county fiscal body as a representative of school corporations other than the largest school corporation in the county.
        (5) One (1) member appointed by the county fiscal body.
        (6) (5) One (1) member representing the community mental health center (as defined under IC 12-7-2-38 ) serving the county, appointed by the director of the community mental health center. However, if more than one (1) community mental health center serves the county, the member shall be appointed by the county fiscal body. director.
        (7) (6) One (1) or more additional members appointed by the chairperson of the team, county director, from among interested or knowledgeable residents of the community or representatives of agencies providing social services to or for children in the county.

SOURCE: IC 31-37-24-5; (01)IN1003.1.57. -->     SECTION 57. IC 31-37-24-5 , AS AMENDED BY P.L.273-1999, SECTION 110, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. If a county has in existence a committee, council, or other organized group that includes representatives of all of the appointing authorities described in section 4 of this chapter, the county fiscal body director may elect to designate that existing organization as the county's team for purposes of this chapter.
SOURCE: IC 31-37-24-11; (01)IN1003.1.58. -->     SECTION 58. IC 31-37-24-11 , AS AMENDED BY P.L.273-1999, SECTION 115, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. The director or the state superintendent of public instruction may, not later than thirty (30) days after receiving the plan, transmit to the team and the county fiscal body director any comments, including recommendations for modification

of the plan, that the director or the state superintendent of public instruction considers appropriate.

SOURCE: IC 31-37-24-12; (01)IN1003.1.59. -->     SECTION 59. IC 31-37-24-12 , AS AMENDED BY P.L.273-1999, SECTION 116, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 12. Not later than sixty (60) days after receiving the plan, the county fiscal body director shall do one (1) of the following:
        (1) Approve the plan as submitted by the team.
        (2) Approve the plan with amendments, modifications, or revisions adopted by the county fiscal body.
        (3) (2) Return the plan to the team with directions concerning:
            (A) subjects for further study and reconsideration; and
            (B) resubmission of a revised plan.
SOURCE: IC 31-37-24-14; (01)IN1003.1.60. -->     SECTION 60. IC 31-37-24-14 , AS AMENDED BY P.L.273-1999, SECTION 117, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. (a) The team shall meet at least one (1) time each year to do the following:
        (1) Develop, review, or revise a strategy that identifies:
            (A) the manner in which prevention and early intervention services will be provided or improved;
            (B) how local collaboration will improve children's services; and
            (C) how different funds can be used to serve children and families more effectively.
        (2) Reorganize as needed and select its vice chairperson for the ensuing year.
        (3) Review the implementation of the plan and prepare revisions, additions, or updates of the plan that the team considers necessary or appropriate to improve the quality and efficiency of early intervention child welfare services provided in accordance with the plan.
        (4) Prepare and submit to the county fiscal body director and the superintendent of public instruction a report on the operations of the plan during the preceding year and a revised and updated plan for the ensuing year.
    (b) The chairperson or vice chairperson of the team or the county fiscal body may convene any additional meetings of the team that are, in the chairperson's or vice chairperson's opinion, necessary or appropriate.
SOURCE: IC 31-37-24-15; (01)IN1003.1.61. -->     SECTION 61. IC 31-37-24-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15. The team or the county fiscal body shall transmit copies of the initial plan, each

annual report, and each revised plan to the following:
        (1) The director.
        (2) The state superintendent of public instruction.
        (3) The county office.
        (4) The juvenile court.
        (5) The superintendent of each public school corporation in the county.
        (6) The local step ahead council.
        (7) Any public or private agency that:
            (A) provides services to families and children in the county that requests information about the plan; or
            (B) the team has identified as a provider of services relevant to the plan.

SOURCE: IC 31-37-24-16; (01)IN1003.1.62. -->     SECTION 62. IC 31-37-24-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 16. The team or the county fiscal body shall publicize to residents of the county the existence and availability of the plan.
SOURCE: IC 31-40-1-1; (01)IN1003.1.63. -->     SECTION 63. IC 31-40-1-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. This article applies to a financial burden sustained by a county or the division as the result of costs paid by the county or the division 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; (01)IN1003.1.64. -->     SECTION 64. IC 31-40-1-2 , AS AMENDED BY P.L.273-1999, SECTION 119, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) As used in this section, "per diem" means the amount payable by a county, as determined by the division or by the county office, with the approval of the division, for the cost of support and maintenance of a child placed by, or with the approval of, a juvenile court in a facility other than the home of the child's parent or guardian, including the cost of those items that are included in foster care maintenance payments (as defined in 42 U.S.C. 675(4)), or that would be included if the child were eligible for assistance under Title IV-E of the Social Security Act (42 U.S.C. 670 et seq.).
     (b) The county shall pay from the county family and children's fund the cost of:
        (1) any per diem payable by the county and any services ordered by the juvenile court for any child or the child's parent, guardian, or custodian, other than secure detention; except as provided in subsection (c); and
        (2) returning a child under IC 31-37-23.
     (c) The county shall pay from the county general fund, and not from the county family and children's fund, the cost of any per diem payable by the county for a child adjudicated a delinquent child under IC 31-37, or for a child for whom a program of informal adjustment has been implemented under IC 31-37-9 , if the child is placed in a secure facility that is not a secure private facility.
    (b) (d) The county fiscal body shall provide sufficient money to meet the court's requirements.
SOURCE: IC 31-40-1-3; (01)IN1003.1.65. -->     SECTION 65. IC 31-40-1-3 , AS AMENDED BY P.L.273-1999, SECTION 120, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: 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 division 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; (01)IN1003.1.66. -->     SECTION 66. IC 31-40-1-5 , AS AMENDED BY P.L.273-1999, SECTION 121, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: 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 or the division 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 the division, 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 or the division 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 or the division 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 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 36-2-6-3; (01)IN1003.1.67. -->     SECTION 67. IC 36-2-6-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) This section does not apply to the following:
        (1)
Claims for salaries fixed in a definite amount by ordinance or statute, per diem of jurors, and salaries of officers of a court.
         (2) Claims that will be paid from a county family and children's fund.
    (b) The county auditor shall publish all claims that have been filed for the consideration of the county executive and shall publish all allowances made by courts of the county. Claims filed for the consideration of the executive shall be published at least three (3) days before each session of the executive, and court allowances shall be published at least three (3) days before the issuance of warrants in payment of those allowances. In publication of itemized statements filed by assistant highway supervisors for consideration of the executive, the auditor shall publish the name of each party and the total amount due each party named in the itemized statements. Notice of claims filed for consideration of the county executive must state their amounts and to whom they are made. Claims and allowances subject to this section shall be published as prescribed by IC 5-3-1 , except that only one (1) publication in two (2) newspapers is required.
    (c) A member of the county executive who considers or allows a claim, or a county auditor who issues warrants in payment of allowances made by the county executive or a court of the county, before compliance with subsection (b), commits a Class C infraction.
    (d) A county auditor shall publish one (1) time in accordance with IC 5-3-1 a notice of all allowances made by a circuit or superior court. The notice must be published within sixty (60) days after the allowances are made and must state their amount, to whom they are made, and for what purpose they are made.
SOURCE: IC 6-1.1-18.6; IC 12-19-5; IC 12-19-7-4; IC 12-19-7-5; IC 12-19-7-9; IC 12-19-7-10; IC 12-19-7-16; IC 12-19-7-17; IC 12- 19-7-18; IC 12-19-7-19; IC 12-19-7-20; IC 12-19-7-21; IC 12-19-7- 22; IC 12-19-7-23; IC 12-19-7-24; IC 12-19-7-25; IC 12-19-7-26; IC 12-19-7-27; IC 12-19-7-28; IC 12-19-7-29; IC 12-19-7-30; IC 12-19- 7-31; IC 12-19-7-32; IC 12-19-7-33; IC 31-34-24-13; IC 31-37-24-13.
; (01)IN1003.1.68. -->     SECTION 68. THE FOLLOWING ARE REPEALED [EFFECTIVE JANUARY 1, 2003]: IC 6-1.1-18.6 ; IC 12-19-5 ; IC 12-19-7-4 ; IC 12-19-7-5 ; IC 12-19-7-9 ; IC 12-19-7-10 ; IC 12-19-7-16 ; IC 12-19-7-17 ; IC 12-19-7-18 ; IC 12-19-7-19 ; IC 12-19-7-20 ; IC 12-19-7-21 ; IC 12-19-7-22 ; IC 12-19-7-23 ; IC 12-19-7-24 ; IC 12-19-7-25 ; IC 12-19-7-26 ; IC 12-19-7-27 ; IC 12-19-7-28 ; IC 12-19-7-29 ; IC 12-19-7-30 ; IC 12-19-7-31 ; IC 12-19-7-32 ; IC 12-19-7-33 ; IC 31-34-24-13 ; IC 31-37-24-13.
SOURCE: ; (01)IN1003.1.69. -->     SECTION 69. [EFFECTIVE JANUARY 1, 2003] (a) The division of family and children shall reimburse each county for one hundred percent (100%) of the proportionate share of operating costs of the county auditor and county treasurer for the support of the county family and children's fund, based upon an approved indirect cost plan.
    (b) This SECTION expires July 1, 2004.

SOURCE: ; (01)IN1003.1.70. -->     SECTION 70. [EFFECTIVE JANUARY 1, 2002] (a) Before September 1, 2002, the state board of accounts shall verify the amount expended by each county from the county's family and children's fund in 2001 for payment of expenses of support,

maintenance, or services for delinquent children that would have been payable from the county general fund under IC 31-40-1-2 , as amended by this act, if IC 31-40-1-2 (c), as added by this act, had been in effect for 2001.
    (b) In determining the amount expended by each county as described in subsection (a), the state board of accounts shall consult with the director of the county office of family and children, the judge of each court having juvenile jurisdiction, and the county auditor.
    (c) The state board of tax commissioners shall, for property taxes first due and payable in 2003 and thereafter, increase the maximum permissible property tax levy of a county by the amount of expenses verified for the county under subsection (a).

SOURCE: ; (01)IN1003.1.71. -->     SECTION 71. An emergency is declared for this act.